Clear Blue Technologies International Inc.

Jonathan, can you hear me?

Yes, coming in.

Okay. Good morning. Good morning. This presentation is being recorded for further viewing after the webinar is completed. My name is Miriam Turk. I'm co-founder and CEO of Clearblue Technologies. I'm joined today by Farouk Anwar, who's our CFO, and Jonathan Van Der Reen, who's head of our marketing function within the company. Today, we're going to be going over our fiscal 2025 and Q1 2026 earnings results and try to give you as much information as we can from a forward outlook perspective. With respect to forward outlook perspective, please be aware always the guidance that's around forward-looking statements. We're giving the best information we have at the time that we have it, but there's nothing that can promise what's going to happen in the future, so please take that under advisement. So just a little bit about Clear Blue. Clearblue is a world leader in delivering clean, managed wireless power to meet the global need for reliable, low-cost energy for mission-critical infrastructure. Why do I say the word world leader? We don't deliver large solar infrastructure that feeds into the grid. We deliver off-grid power that is disconnected from the grid for small point-of-use applications. satellite systems, Wi-Fi networks, smart city infrastructure, security cameras, streetlights, cell phone towers. And when it comes to that, we build the technology, but we also manage and deliver it on an ongoing basis. We've been doing that since day one when we had our first prototype in 2011. And we've been remotely managing and monitoring those systems online with an ongoing service since day one. As a result of that forward thinking and strategy as a company, we are a leader. We have more than 400 customers. We've deployed more than 15,000 units around the world. We've processed more than a trillion cloud transactions. We don't just send a system and say here you can connect to a Wi-Fi app and download some data into an Excel spreadsheet. We run a communications network that connects to every device we've deployed. It comes into a very large cloud system, which we remotely manage, operate, and deliver the service on an ongoing basis. Our vision is to become the world's largest virtual renewable power utility, and we are working very hard to make progress on that objective. So 2025 was an eventful year for Clearblue. We started off in Q1 and early Q2 with major activities to complete the financial restructuring that we started in 2024. And we began a new strategic plan and growth trajectory, which we've called Clearblue 2.0. The company has 100% focus on delivering positive EBITDA and cash flow. We've made solid progress on this, and the Q1 results show good movement in this direction. While we're not providing any guidance to the market at this time, the team has this milestone as a target in 2026. So when we talk about, you know, positive EBITDA and cash flow, we're not just talking about someday in the future. We're talking about we're going to get there soon, and we're working very hard to make it happen this year. With the cost reductions we have achieved, which are now heavily enabled by AI, quarterly revenue of $1.5 million delivers positive EBITDA. As the revenue from our key partnerships, UTILSAT and Cooper, drives revenue growth, this target is within reach in the short term, in our belief. Of course... Increasing revenue starts with increased sales bookings, and 2025 was a good year for that. Bookings increased by 122% over 2024, going from a 2024 result of $2.8 million to over $5.2 million in bookings. Bookings translates to purchase orders and cash payment. But revenue is recognized both one time and over three years. And as a result, revenue will always be lower than the bookings in the near term. Thus, revenues lagged behind bookings and grew at a more conservative rate of 18% growth. The biggest milestones for 2025 were not the revenue numbers, but rather the strategic partnerships of UTELSAT and COOPER. Clear Blue began focusing on the satellite market a number of years ago. I can remember talking to the market maybe pre-COVID saying that satellite was moving from very slow speeds and very expensive to high speed and lower cost. And that transition has been something that we have realized. The UTEL SAP partnership is a key result of that. Our new PICO product is specifically designed to meet the needs of satellite applications. The smart power function that comes in that product provides the lowest cost power solution that you could buy anywhere for the application, which allows our satellite vendors to get out to market and get more systems out into the field. But at the same time, it provides very innovative smart power capabilities that no one else in the market has but Clearblue. As UTELSAT has achieved significant investment and support to more aggressively grow its business, Clear Blue has proven itself to be both a strategic partner and an enabler of their growth. On the Cooper Lighting side, this partnership has been focused on power utilities and transportation departments. We have a number of those customers in late-stage prototype testing and approval. Unlike other lighting projects where the customer will buy a system and deploy a first project, these utilities are looking to standardize on a standard product. And as a result, they do a lot of testing. They ask us to do security certifications and demonstrate performance. And that has taken some time for customers such as Duke Energy. Once these customers come online, though, we are expecting and hoping for a steady stream of deployment with a larger rollout, and that is our target plan for this vertical. Of course, significant focus is on the balance sheet of the company. We were honored and thrilled to have shareholder support to close a product placement of $1.1 million earlier this year and in Q4. Our STDC R&D grant generated another $500K. And with the new SHRED tax rules, which allows publicly traded companies to receive the tax refunds for SHRED like private companies have always been able to do, we expect a large SHRED refund in Q3. Lastly, AI is a game changer for us. And it must be in order for us to be competitive. So I want to emphasize that the adoption of AI is not just a question of, you know, reducing expenses. It is also a question of changing the speed at which the company is operating at. You have to move at a much faster pace of execution, and you can do that with AI adoption. So as a result of us adopting AI, we have been able to achieve some additional savings. We'll go into that more later in the presentation, but it's another $900,000 in annual cash reductions on an annualized basis, which will be fully implemented by the end of this year. But the key message of AI is that we're not only leaner, but we're moving faster to grow our business. And, of course, my mouse is somewhere all over the page here. Apologies for that. So ClearBlue has a long history in focusing in the ground infrastructure for opportunities that are related to high-growth LEO and GEO constellations. Again, LEO is low-Earth orbit satellite, things like Starlink, and GEO is the more traditional higher-Earth, higher-up-in-the-constellation satellite services. Both have been radically improving their speed and reducing costs. As of today, because this has been a focus of ours for quite a long time, we actually power over 600 satellite backhaul sites across customers like Eutelsat, Viasat, Avanti Communications, and YawClick. So while there is significant energy in this sector, we started a long time ago and have been slowly building our business and continue to launch off of that. That is why Clear Blue 2.0 should allow us to really have a large trajectory of growth. Apologies. In 2026, we have three key goals and priorities. One is to focus on space satellite and telecommunications markets. Two is to deepen relationships with large-scale customer partners. And three is to grow our revenue and at the same time reduce our cost to achieve a pathway toward positive EBITDA. Together, those three pillars are our Clear Blue 2.0 strategy and plan. When it comes to the satellite, internet, and telecommunications market, demand is rising significantly. Satellite, internet, telecommunications networks are expanding in remote, weak grid, and fully off-grid locations. They're also more and more deemed a very critical infrastructure for companies moving forward. In order to meet that critical need, we solve the energy problems. Off-grid virtual power systems can materially cut diesel dependence and grid interconnection risk for remote telecommunication sites, and Clear Blue is well positioned to support and deliver that service on an ongoing basis. Just as a data point, if you take all of the sites that we have operating in Africa, which are solar only, there's more than 600 of them, Last year, we delivered an uptime of greater than 99.5% uptime for those sites. That is an unheard of metric in the market today for telecom operations, solar only. Deepening our relationships with large-scale partners is where we're going to get large-scale revenue. And in our telecommunications vertical, we were thrilled to achieve a huge benefit with UTELSAT this last year in getting a milestone contract for 15,000 potential sites for their LEO rollout across Africa. UTELSAT is a merger of the UTELSAT and OneWeb of France and the UK. They have significant backing and focus as the EU moves to become more independent, have a better security strategy and defense, and there is significant investment going on to help UTELSAT do the rollouts that they want to do to achieve significant market penetration. In addition to the contract for the GEO product, which has started to roll out, we've received two orders, one for 100 units and one for 350 units in Q1 and Q2. We also signed a $500,000 development contract with them to develop LEO-based products and services, which is another large-scale opportunity for UTELSAT. On the Cooper side... We've been working with them for quite a while. Our focus in that market is the electrical utilities and the transportation departments. And as I said earlier, those require long-term proof of concepts, run them for three, four, five, six months, go through security testing, et cetera, et cetera. That activity has been going on since early last year. And we are hopefully going to see some of the revenue from those projects starting to roll online soon. later this year, but for 2027, it should be a material impact on our growth and revenue trajectory. As of today, we have five ongoing pilots or relationships with other potential large-scale customers, mostly in the satellite telecommunications market. So, obviously, we are going across the market to talk to a number of people. We've seen significant interest in the market from customers and vendors and projects that are looking for the types of capabilities that we have. So balance sheet, balance sheet, balance sheet, generating cash and getting the company to a point where it's cash flow positive, EBITDA positive, and we can invest in growth. One thing I want to comment on about this is cost reduction for the sake of cost reduction is not always a great thing. It's really good when it can align with the strategic direction of a company. And in the last few years, we had to invest significantly in product development and technology development. in order to get the types of products we need specifically for telecom and also for lighting. We developed our Pico product. We acquired the Eastlight product in Sweden, and then we launched our Micro product, and that required a significant amount of R&D investment. We were investing in the future by building those products. One of the things that small companies are – tech companies are kind of one of the sayings in the marketplace is that at a certain point in time, a company needs to transition from being technology-focused, where the majority of the effort in the company is around the development of the product and the technology – to a point where the majority of the effort is towards sales, business development, partnership, and growth. It's not that you get rid of R&D. You have to always do it and be innovative and move forward in that area, and we continue to do it. But the cost reductions that we have achieved have been done within a framework of allowing us to achieve our long-term objectives. We have – myself, the management team, the employees – and the board have believed in the long-term value of the company and the opportunity to grow the company going forward. And as a result, we've made the decision that we've got to get these products done. We've got to get them out the door. So in 2025, we achieved over a million dollars in cost reductions, 1.243 million, which you can see in our Q1 results. And as a result of adopting AI, And, again, pushing the pedal to the metal, moving much faster as a company, but also streamlining your expenses and reducing, you know, the 17 steps you were doing down to one or two steps automated by AI. And by the way, we have a lot of AI agents in the company working. They have names like Coco and Snoot and Jasper and are performing a number of functions. So, you know, when I look at the organization of the company, you can almost start to put, you know, names below the AI people who are performing certain functions. But as a result of all of this, we are able to reduce our professional fees, our G&A, Even a little bit on the business development side, although we want to grow business development and sales down the road, there are a lot of paperwork, not paperwork, but proposal work, technology analysis work, reporting work, administrative invoicing work that can be streamlined even in the business development area. And so when you put all of that together, We're now running at a point, and we'll be there by the end of this year. You'll see most of it in Q4 results, a good chunk of it in Q3 results. But we are at a point now where our annual OPEX is $2.5 million. And if you take that together with our almost 50% gross margin, you start to see that we're not that far away from a positive EBITDA and positive cash flow situation. Once we get there, and we've got everything, you know, the engine well-oiled and working, then we start to scale on sales. So the cost reduction strategy is also a strategic piece that says we have to transition from technology, product, operations, building all of the processes and things around it, to focusing on sales and market, go-to-market strategies. And so I believe that these cost reductions were not just done in a way to, you know, slash and burn, but were done in a way to make the company a stronger and better company to move forward and to get through that transition, which everybody will tell you is very difficult when you have to move from core R&D technology focus to core sales and business driven. Farouk, I'm going to turn it over to you. Would you like to jump in?