Legend Power Systems Inc.

Hello, everybody. Thank you very much for joining us today. We're going to give everybody a few minutes to finish populating into the meeting, and our meeting will start shortly. All right, Randy, it looks like everybody has joined the call. You may begin.

Thank you, Mike. Welcome to the Legend Power Systems Physical Q1 2026 Investor Call. I'm Randy Buckmer, Legend's Chief Executive Officer. We're pleased to have you join us on the call today to discuss our corporate progress, financial results for Fiscal Q1, which for the three months that ended December 31st, 2025. Please note that certain statements in this column 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 Legend's forward-looking statements and risk factors, please see our management discussion analysis, which was filed on CDAR, under our company profile at cdarplus.ca. We held an IR call about 30 days ago, and rather than repeating the same issues in detail, we'll summarize on our previously discussed challenges and update you on our progress over the last 30 days. I'm joined by Paul Moffitt, who is our Chief Operating Officer and Acting CFO, and Mike Sciosi, who is Vice President Sales and Marketing. Paul will provide an update on the various operational units under his leadership. And during last month's IR call, Mike discussed the extraordinary challenges that affected our sales last year and into fiscal 2026. And he will update you on our progress addressing the challenges over the last 30 days. And as discussed in that IR call 30 days ago, we have operated in a tight cash environment for the last couple of years. And fiscal 2026 Q1 was also a tight cash quarter. We continued to make the necessary expense and operational cost reductions to keep our momentum going, including having several leadership members deferring salaries from September to January. The team members were paid back only 75% of the salaries owed as a contribution to conserve cash. We also completed the financing, grossing over $1.65 million in late January 2026. And thank you to one of our directors, Jonathan Lansky and Sean Peasgood, IR specialists for their help with that endeavor. In previous years and system generations, purchasing decisions were made on industry standard energy saving methodologies. Previous system versions cost sometimes $40,000 to $100,000, and installations were $20,000 to $30,000. And today's systems can be $125,000 to $250,000, and installs can be $100,000 to $300,000 enough. So decisions can't be justified simply on energy savings like they were in the past, but combined with non-energy savings. Without an industry standard methodology that measures non-energy savings, prospects have questioned the validity or how impartial non-energy saving calculations are. This skepticism that Mike discussed last IR call led to some deal closing delays. He'll discuss how we're managing this challenge and how the combination of energy And non-NG savings provides very attractive smart gate business returns. We also continue to be frustrated with continued U.S. government flip-flops on programs and policy changes that have deferred significant orders. Mike will talk about that, but expected commitments have been seriously delayed due to government intervention, including complete departmental shutdowns or elimination, changing of programs, etc., To be clear, we have not lost, nor do we expect to lose, any U.S. government business. We have experienced delays, but expect good order flow. We also, with Paul's leadership, continue to lower our component costs, increase our system margins. There are substantial reviews that have been conducted to source either new vendors or better pricing to reduce our costs. We expect to achieve 50% margins plus during the year. And in summary, we really do see more opportunity than ever before. Smartgate interest is strong. We're close on numerous large multiple-year deals. And infield system performance has been absolutely outstanding. And importantly, while the green investing sector has faced political challenges, Legend Power Systems' value proposition transcends political narratives. Over the last year or so, power quality and the cost of bad power are being highlighted. We're seeing more and more devices and demands on power and the grid. And by delivering lower costs, increased profitability and reduced risk, we can provide enduring value rooted in traditional business fundamentals. Mike will show you today a new tool we have to help highlight the impact of SmartGate on building performance and the financial aspects. And hopefully you'll find that quite interesting. We see a bright Legend future, and the Legend team is absolutely committed to make Legend Power a success story. Paul, if you would, walk us through the operational update, please.

Sure. Thanks, Randy. Hello to everyone on the call. The revenue for the first quarter of fiscal 26 was $252,000 compared with $81,000 the same quarter of fiscal 25. and that's entirely due to the fact that we built additional systems in this quarter, so demand and volumes are increasing. Gross margin, I'm happy to report, in the first quarter of fiscal 26 was 44%, and that's compared with 15% in the same quarter of fiscal 25. Also, quarter over quarter, the fourth quarter of fiscal 25, the margin was 25%. So we've seen increases both year over year and quarter to quarter. Increase in gross margin compared to the first quarter of 25 was primarily due to the quantity of systems built. Of course, the reduction of cost of goods sold that we're seeing both on one originally a large component and we're going into another large component reduction and the lack or the lower installation activity, which is a lower margin activity. So we see an increase in our gross margin accordingly. Separately, equipment gross margin was 47%, which is great. Now that's mixed dependent, but that has increased and it looks very well in line with our price modeling. We had a services gross margin of 80%. So if we combine those and we normalize for a full factory utilization, our overall gross margin for the first quarter of 26 would achieve and exceed 50%. So very happy to see that. And as Randy mentioned, we'll see improvements over the year as more of the reduced-priced materials come into play. The company's operating expenses for the first quarter of fiscal 26 were $631,000, compared it with $1,040,000 in the same quarter of fiscal 25. And again, the primary cause for decrease was lower headcount, lower salaries, services, consulting costs, as a result of a lot of the continuous improvement work that we've been doing and other internal cost cutting measures. In operations, three of our backlog systems have shipped since our last meeting. So we're shipping almost one a week, which is great. And that's contributing, of course, to our invoicing and our accounts receivable. Five are remaining to ship, and those will go out by early summer, potentially as early as April, May. And cash, again, cash management, as Randy has mentioned, is a top priority. Accounts receivable from our backlog now totals over $300,000, and as well as the recent financial raise, these both support our ongoing operational costs. Although generally flat over the last month, inventory has moved. It's moved into production. We see an increase of work in progress and finished sub-assembly levels as orders are being transformed into finished goods and getting ready for shipment. Operating expenses reduced from $347,000 per month the prior year and $217,000 the prior quarter to $210,000 per month in the first quarter of 26. Additional initiatives are underway, so we're going to see some further increases in those operational costs. As reported previously, management continues to monitor and cost-cutting opportunities, both cash and cost-cutting opportunities very closely. We're reducing our overall expenditure in support of working capital and growth objectives. Cost reductions continue. Lead time reductions are happening. They've shortened. Gross margin initiatives are all underway, all aligned with our operational objectives and our budget for fiscal 26. Thanks, everyone. I'll pass it over to Mike.