Legend Power Systems Inc.

Good morning. My name is Celine and I will be your conference operator today. At this time, I would like to welcome everyone to the Legend Power System Q4 2021 Financial Results Release and 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 one on your telephone keypad. If you would like to withdraw your question, please press the pound key. Thank you. Mr. Vannery, you may begin your conference.

Thank you, and good morning, everyone, and welcome to Legend Power Systems Fiscal Year 2021 Investor Call. I'm Steve Vannery, Legend's Chief Financial Officer. We're pleased to have you join us on the call today to discuss our corporate progress and financial results for the fourth quarter and year-end of September 30th, 2021. Please note that certain statements in this call may be forward-looking in nature. These include statements involving known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied in our forward-looking statements. For more information about Legends' forward-looking statements and risk factors, please see our year-end management discussion and analysis, which was filed on CDAR today, under our company profile at the website cdar.com. I will now pass the call over to Legend's CEO, Randy Buckemer, for an overview of our fourth quarter. Randy?

Thank you, Steve. Welcome, everyone, to our Q4 2021 Fiscal Investor Call. Appreciate your support. Pleased to have everyone on the call. We want to update you on how things have gone over the last quarter, some updates for recent business, et cetera. And obviously, you've heard that Steve Annery, our CFO, is on the call today. We also have Mike Cioci, our VP Sales and Marketing. Steve will answer any financial questions, et cetera, and get over to you later on. Mike will give you the update on a lot of the significant sales activity progress that's being made with his team. And, you know, really to set up the call, I thought I would just mention that obviously we all know there's various macro challenges that we continue to face, but we are experiencing growth in all aspects of our business. We believe at this time that The opportunity that we see to become that leading energy platform solution we all want has never been better, and we're seeing signs that the opportunity will only continue to grow. We have been achieving our internal business activity growth targets, which ultimately drive the strong revenue growth over the next few quarters. GeoFlow pipeline are expanding significantly. Gen3 platform is finally being shipped as of the end of September. Backorder is growing, insights service deployments continue to grow, reseller ESCO channels are embracing both insights and smart gate solutions and basically our target markets and reseller channels continue to respond very positively to legend solutions and combined opportunities. Stepping back during the last quarter we completed a little over 10 million dollar raise to support our growth plans And we raised the capital for certain initiatives, which I just thought we'd step back and understand what we raised the money for and where we're at during Q4 2021. We said that we would complete our Generation 3 platform development and launch our Generation 3 product by the end of September. This has been accomplished. As of today, we are in the process of shipping well over 20 Gen 3 platforms. Address one of our biggest needs, which was a proven sales leader with channel sales experience and contacts. As the company sent the direction earlier in the year that we would be transferring more and more business over to channels. So we were delighted when Wanda Adams joined Ledger in mid-September. She is leading our channel development efforts and brings over 25 years of proven channel development success. Wanda also asked to personally choose two reps that she could bring on to the team from her background. And quite simply, she said, I want the bass to work with me, and I'm going to go get them. And she brought on Mike and Brian that Mike Sciosi will add some more color on. But we've now got a team that has 20-plus years' experience with each person and all kinds of relationships, all kinds of contacts in our target markets. We also said that we would engage and develop the ESCO markets. and we would participate in a major ESCO show. And we are engaged with many of the top ESCOs. And we were the platinum sponsor at R3, which is the annual ESCO conference that was held in Houston. And Mike will talk about that. We also said we would need to build out our operations and our corporate resource capabilities to support our business growth. And this was really a continuation of our overall corporate strengthening and performance improvement initiatives, which began over a year ago with our building a very professional engineering team and improving the capabilities of our finance and corporate services team that we started. At the end of Q3, we added a veteran production, assembly and inventory professional, Ben Sun, to improve our production capabilities. And Ben has just done a great job, a lot of experience, just a lot of moxie that he has, and he's been really making a difference over the last 90 days. We are in the final interviews with a couple of candidates for the COO role. And we're adding a COO to provide operational leadership to support our growth and value chain growth opportunities. And we're quite excited about that. And we believe that as we continue to grow as an operating company, we really need that leadership. And we are constantly interviewing to find people who make a difference. And we're tracking aid players. We are also growing to meet the opportunities in multiple markets and channels. And Mike and his team has opened up large deals and some federal program access, which will drive some strong revenue growth as we go forward. We also continue to experience supply chain challenges. Spoken to many on the phone about that, about securing components to meet the Gen 3 demand. You know, quite simply, Gen 3 delivery was later than we wanted, but if you don't have the components to make the product, it's hard to ship it out. We know that most companies experience the same challenges and pricing spikes. So I think really adding Ben is a big difference because he's really someone that's full-time, 100% thinking about sourcing and securing parts, et cetera, and doing a great job, as we said. We have not and will not lose any business due to part shortages and delays, and we work with our customers very collaboratively. But component shortages, cost increases, and extended lead times will negatively impact our ability to build and ship Gen 3 platforms. Until late September, that was really the case. And it will negatively affect margins, but we're taking all the necessary steps we can to manage this challenge. You know, it's hard to really put a number on it, but I expect the current component challenges could last 12 to 18 months. But we'll update on a quarterly basis as we have more information. And, you know, I've said to several people on calls, the positive side of supply chain dilemma is that we have source better, more strategic, long-term partners. There will be better business partners for Legend as we grow. So there is some good news out of it. And clearly, we continue to see the world looking for products like Legends, Smartgate, and we continue to see demand and interest there. Combining our new platform with exciting sales progress with Mike and his team that he'll speak to, we look really forward to really building over 2022 and subsequent years. And we expect to see continued confirmation that the time is now for Legend in our solutions. Just a couple other points, and I'll turn it over to Steve, is that during these uneasy financial market times, it's comforting to know that Legend has a sufficient balance sheet and we've got the resources to fuel our planned growth. We've invested to grow by improving our sales team and processes and building a strong engineering team. And we'll continue to release leading-edge energy management solutions. We'll continue to improve and expand our sales team and team members to ensure we can achieve our growth targets. And generally, we continue to earn the respect of our target markets and their ecosystems, and we make them comfortable that Legend is an innovative company to work with. We continue to build our brand by working with key ecosystem players to ensure they are aware of and ultimately support Legend, powering their client buildings and opportunities. Again, the leadership team is very positive about Legend's future. We're each committed to making Legend a leading energy company, and we're very excited about where we're going. Turn the call over to the other fellows to provide updates in their respective areas, and then I'll circle back and tidy up. Steve?