Cielo Waste Solutions Corp.

Good afternoon. My name is Jenny, and I will be your conference operator today. At this time, I would like to welcome everyone to the Shell Away Solutions second quarter 2024 financial update conference call. All lines have been placed on mute. 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 one on your telephone keypad. If you would like to withdraw your question, please press the star followed by the two. Thank you. I will now hand the call over to Mr. Ryan Jackson, Chief Executive Officer, and Ms. Jasdeep Dhaliwal, Chief Financial Officer of CLA Solutions. Please go ahead.

Thanks Jenny and good morning everyone. I'm pleased to be joined by with Jasdeep Dhaliwal today and we'll keep this fairly brief this morning and go straight to Q&A after we've made some initial remarks on the highlight from the PR that we did or that we released on the 15th. So we're happy to provide the most recent six months ended October 31st, 2023. and as well as the filing of a restated unaudited interim financial statement for the three months ended July 31st, 2023 and 2022. Copies of the unaudited Q2 financial statements and related management's discussion and analysis can be found on our issuer profile at cdarplus.ca. All financial information in the news release is reported in Canadian dollars, and of course, anything that we say today is also reported in Canadian dollars. I'll now turn the call over to Jasdeep Dhaliwal, the Chief Financial Officer for Cielo.

Thank you, Ryan. Good morning, everyone. I wanted to go through first the financial highlights, then we'll speak to some of the key transactions throughout the quarter and subsequent to the quarter. Total assets for the period ended October 31, 2023, were $13.9 million. Total liabilities, 5.3. Total long-term or non-current liabilities were 1.9 million, with a working capital deficiency of 2.1 million. In the three-month period ending October 31, 2023, our financing costs were 60K G&A, 616K research and development, 221K, and a non-cash item, stock-based compensation, 187K. For the three-month period, the net loss was $1.4 million, which consisted primarily of G&A of $0.6 million, research and development of $0.2 million, and finance costs of $0.05 million. And as previously mentioned, the non-cash item of stock-based comp of $0.2 million. The key transaction that occurred in the prior quarter, which, as I mentioned, ended October 31, 2023, was the sale of the Fort Siscatchewan property, The disposition of the land and the building resulted in the retirement of the principal mortgage, which was referred to as the second mortgage of $11 million. The transaction itself entailed $2 million promissory note. The purchaser is required to make best effort to sell the property. In the event the property is not resold, the $2 million promissory note will be terminated and the company will not be entitled to further proceeds of the disposition. For this piece, it is important to note that a small amount of impairment was missed in Q1 2023, so the period ended July 31st, 2023. Impairment was recognized for land and building, but miscellaneous costs that were incurred were not considered in the calculation. Therefore, a restatement of Q1 2023 financials were also filed on December 15th as well. Subsequent to the period end, We are very happy with the closing of the transaction of the IP licensing agreement with Expander Services, Expander Energy. The nature of this transaction resulted in 906 million common shares that were issued for 6 cents, with the total value of the transaction at 45 million. For individuals looking for further details, questions have come our way. They are noted in the subsequent events section of the financial statements. And it's important to note for this transaction, the transaction itself, the $45 million was issued in common shares. No other consideration was provided for this transaction. In the current period, we have also launched a private placement for flow-through shares. for up to $6 million. We are currently in the process of completing this private placement and the closing will be announced later this week or prior to the year end. The other item to note that occurred in this quarter was the shareholder approval for the reverse consolidation or consolidation of shares that occurred at our annual general meeting. As far as management assessment of when this reverse consolidation should occur. We are assessing a strategic component of project financing and other aspects that factor into a reverse consolidation for CLO. Brian, at my end, that wraps up the significant ideas in relation to Q. I pass the mic back to you.