Cielo Waste Solutions Corp.

Good afternoon, ladies and gentlemen. My name is Michelle and I will be your conference operator today. At this time, I would like to welcome everyone to the Cielo Waste Solutions Q2 2023 Financial Results 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 would like to ask a question during this time, simply press star, then the number 1 on your telephone keypad. If your question has been answered and you would like to withdraw from the queue, please press star, then the number 2. I would now like to hand the call over to Mr. Ryan Jackson, Chief Executive Officer, and Ms. Jazdeep Dhaliwal, Chief Financial Officer of CLOA Solutions. Please go ahead.

Thanks, Michelle. And good morning, or in certain parts of the country, good afternoon, everyone. Cielo is, of course, pleased to announce its financial results for the six months ended October 31, 2022. And, of course, want to make sure that we know that all amounts in this conference call will be in Canadian dollars, unless otherwise indicated. Just wanted to also mention, too, that after this, Michelle mentioned, there is going to be a Q&A We have some different voices today because Jaz, myself, and Ryan Carruthers are all battling what everybody else seems to be battling right now with respect to sickness. So we're getting through it as much as we can, but please excuse if we sound like Kermit the Frog more than we do ourselves today. With that, I'll leave it over to Jaz to do the summary of the Q2 financial results. Jaz?

Good morning, afternoon, everyone. I'm happy to be here with my esteemed colleagues, Ryan and Ryan. Just to go through some of the key events or transactions we went through in Q2. So as noted in our MD&A and in our PR, we were able to complete a payment of $1.1 million for R&D facility fabrication. Occupancy of our Fort Sass facility occurred August 1st, 2022. And this results in annual base rental income of 0.6 million plus 90% occupancy costs that are covered. In addition, on September 8th, shares were issued for a debt for shares conversion of 2 million. This resulted in 26.9 million shares issued as debt repayment. What was also noted in Q1, I just want to mention the impact of that, is that there was impairment of $22.4 million, which has resulted in total assets decrease of $21 million compared to April 30th, as at October 31, 2022, in comparison to April 30th. In addition, total liabilities on October 31st has decreased by $2.4 million compared to April 30th. Due to $1.2 million decrease in accounts payable, we've put forward our best efforts to streamline GNA and ensure we're right-sizing the company for its trajectory and its growth at this point. In addition to that, what you've also seen is in short-term liabilities, the debt has been reclassed, the $4.1 million, to short-term liability because GNA It's due next September, so September 2023, the first loan as referred to, and looking at the valuation of it, it's $4.1 million. In addition, Cielo has begun preliminary conversations with Renewable U on the nine outstanding MOUs and the potential for the first location MOU in Dunmore, the joint venture. What we did there is it's been classified as short-term liability because of our intent to settle the nine MOUs in the next 12-month period. It's also important to note in the MDNA was noted that we do have a waiver on behalf of Renewable U indicating that they will not be calling this 2.25 million before August 23, 2023. The important piece to note there is as noted the pieces that relate to the performance obligation of CLO and Alderside, which is resulting in a conversation back and forth on the settlement of the MOUs and how best to capture our strategy and our trajectory going forward. Subsequent to that, where we are operationally is wrapping up our calendar year of December and Excited for Q1. Ryan Carthers can speak to that as the questions arise with the fabrication completion of our R&D facility and beginning our testing on various seed stock. So to end off October 31st, our net loss for the three-month period ended October 31st was $2.1 million, comprised primarily of GNA of $0.9 million, research and development costs of $0.4 million, finance costs of $0.58 million. Our net working capital deficit totaled $1.8 million at October 31st, with cash utilized for the quarter in operations of $1.4 million and investing in $1.0 million. That's everything on my end, Ryan. The floor is yours.