Cielo Waste Solutions Corp.

Good morning, my name is Anas and I'll be your conference operator today. At this time, I would like to welcome everyone to the Cielo Waste Solutions Fiscal Q1 2022 and Corporate Update conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star, then the number one on your telephone keypad. If you'd like to withdraw your question, please press star, then the number two, thank you. Please note, this call contains certain forward-looking statements and forward-looking information within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as anticipate, achieve, could, believe, plan, intend, objective, continuous, ongoing, estimate. Outlook, expect, may, will, project, should, or similar words, including negative, thereof, suggesting future outcomes. Forward-looking statements are subject to both known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the company, that may cause the actual results, level of activity, performance, or achievements of the company to be materially different from those expressed or implied by such forward-looking statements. CLO is making forward-looking statements, including related to the continued operations of the facility, the ability of the company and facility to achieve continuous production, continue to produce at a steady volume, and the timing for this. The anticipated impact of the CLO's technology on waste and plastics issues. The creation of jobs arising from CLO's technology and facilities. Entry into the JV agreements and the building of additional facilities. Pursuant to the JV agreements. including the ability to build larger facilities that use more waste and produce more fuels, and use of the facility as a test facility and ability to test additional waste streams, although the company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements. There may be other factors that could cause results not to be as anticipated, estimated, or intended. Forward-looking statements are not a guarantee of future performance and involve a number of risks and uncertainties, some of which are described herein. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause the company's actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Any forward-looking statements are made as of the date hereof and except as required by law. Neither the company assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise. For further information on risk factors, please view the company's most recent management discussion and analysis filed with the Canadian Securities Regulatory Authorities and available on CDAR, or by contacting SAIL directly. All amounts discussed today are in Canadian dollars, unless otherwise stated. Mr. Allen, please go ahead, sir. Thank you, Anas.

Good morning and thank you for joining us. I am pleased to be here today with my fellow corporate officers from Cielo, including Greg Gagund, our newly appointed CEO and COO, Stephanie Lee, our CFO, and Chris Sabat, our Corporate Secretary and General Counsel. I'm pleased to confirm that the members of our board are also listening and on today's call, providing further demonstration of the level of commitment to Cielo. As a team, we very much appreciate you joining us for an update on our firm, as well as a run through on Cielo's financial results and our outlook for the future. As many of you know, I founded Cielo about 17 years ago, based on years of research and development work that we were directed to develop and commercialize. a unique technology to transform certain types of waste into high-grade diesel, kerosene, which is aviation jet and marine fuel, and NAPFA. With a lot of hard work and press surveillance and ongoing adaptation to changing market conditions, we have positioned Cielo on an exciting path forward. Based on our proof of concept, we have the opportunity to commercialize this process at a large scale and are committed to bringing this vision to reality. We truly believe we can drive a cleaner energy future and more responsible approach to addressing the landfill waste, not only for the benefit of our company and the shareholders, but also to the society as a whole. To support the company evolution, I'm very proud to have assembled a team that joins me today. As Cielo has continued to grow and progress, so have our needs as an organization. Listing on the TSX-E opens up a lot of new doors and potential exposure to new investors and new pools of capital. As a result, we are capitalizing on this opportunity to continue strengthening our team and enhancing our internal infrastructure, governance, and procedures. The team at Cielo is comprised of a group of like-minded individuals who are all motivated by the opportunity to generate a greener energy supply, which can improve sustainability of our planet. In addition, We are unified in our intention to build an organization capable of generating meaningful returns for our shareholders. Thank you for your continued trust and support of our vision. I would like to now hand over the call to Stephanie Lee, our Chief Financial Officer, to take you through the highlights of Cielo's financial results.

Thank you, Don. Cielo filed its financial statement and MD&A for the three months ended July 31st, 2021. after market closed yesterday, and we're very pleased to have the opportunity to share Cielo's financial highlights. As at July 31st, 2021, the company had $14.1 million of cash and working capital surplus of $5.1 million, which is an increase of $5.8 million compared to a $0.7 million deficiency as at April 30th, 2021. primarily as a result of the decrease in short-term warrant liability upon the exercise of warrants, partially offset by the decrease in cash. Total assets increased by $1.2 million as of July 31, 2021, compared to April 30, 2021, due to the increase in property, plants, and equipment related to the construction activities at Elder's elder site facility and increased prepaid expenses, partially offset by the decrease in cash related to increased R&D and G&A expenditures. Total liabilities decreased by $8.2 million as of July 31, 2021, compared to April 30, 2021, due to the exercise of liability classified warrants and the conversion of convertible debentures, partially offset by the increase in accounts payable and accrued liabilities. The net loss in the current quarter was $3 million, an increase of $1.7 million compared to a $1.3 million net loss for the same period in the prior year. The increase in net loss is primarily attributable to two key factors, G&A expenses increased by $1 million, mainly due to salary and benefit expenses for the additional employees hired to facilitate the growth of the company and professional fees incurred related to the listing of TSX-V in June 2021. R&D expenses increased by $1.5 million in the current quarter due to the increase in research and development activities conducted at the ElderSite facility and the shutdown of the ElderSite facility during the same period in the prior year due to the COVID-19 pandemic. DLO's primary objective for managing liquidity and capital resources is to ensure the company has sufficient funds available for research, development, and other corporate activities. As of July 31, 2021, the company had $14.1 million of cash and working capital surplus of $5.1 million. The company will require additional capital to fund the cost relating to research, development, and other corporate activities over the next year and beyond. The company will continue to explore alternatives to generate additional financing. which may include raising additional equity, debt, or entering into strategic partnerships. With the company's current financial position and go-forward plans, we believe that Cielo has the financial flexibility to execute on our near to midterm strategy and continue on our path to commercialization. As Greg will discuss, we have a clear line of sight to commercialization with a structured plan to guide the organization. With that, I'll hand it over to Chris.