Nanalysis Scientific Corp.

Good afternoon ladies and gentlemen and welcome to the analysis scientific third quarter 2024 conference call. At this time all lines are in listen only mode. Following the presentation we will conduct a question and answer session. If at any time during this call you require immediate assistance please press star zero for the operator. This call is being recorded on Thursday 21st of November 2024. I would now like to turn the conference over to Matthew's

of investor relations please go ahead thank you operator and welcome everyone to analysis scientific's third quarter 2024 conference call before we begin i would like to remind everyone that remarks and responses to your questions today will contain forward-looking statements that are based on the current expectations of management these assumptions involve inherent risks and uncertainties that could cause actual results differ materially from our response Certain material factors and assumptions were considered and applied in making the forward-looking statement. These risk factors are included in our filings for the year ended December 31st, 2023. Forward-looking statements on this call may include but are not limited to statements and comments with respect to future growth of the company's business, the ability to graduate to a senior exchange, the company's acquisition strategy, the ability to develop future products, and the possible associated results. The company's actual performance and financial results in the future could differ materially from any estimates or projections of future performance implied by the forward-looking statements. The forward-looking statements made on this call speak only as of today, and Analysis Scientific assumes no obligation to update any forward-looking information as a result of new information, future events, or otherwise, except as expressly required by applicable law. For additional information, I do encourage everyone to review our public filings and press releases which are posted on the CDAR filing system, and that's at www.cdarplus.ca. So on the call with me today are Analysis founder and CEO, Mr. Sean Krakuski, and Analysis CFO, Mr. Randall McRae. So with that, I would like to turn the call over to Analysis CFO, Randall McRae. Randall?

Thanks, Matthew. Appreciate it. It's a pleasure to join and speak with everyone on the call today. I'll now dive into the financial results for the quarter ended September 30th, 2024. All announced reference are in Canadian dollars. Financial highlights for the three months ended September 30th, 2024 include the three months ended September 30th, 2024, the company reported consolidated revenue of 10.6 million, an increase of 3.5 million or 50% from the comparative period in 2023. Gross margin percentage on product sales was 52% versus 41% for the three months ended September 30th, 2023. Improvement in gross margin percentages for bench shop NMR is materializing. As sales improved in the second half of last year, manufacturing cost reduction started in 2023 and continued in 2024 are positively affecting margins. Security service gross margin percentage in the quarter was 15% versus negative 3% in the prior year comparative period, as the company completed full transition of 100% of airport service to its control from the incumbent provider in the first quarter of 2024 and expects to continue to increase revenue and drive efficiency within this business through 2024 and into 2025. Adjusted EBITDA for the three months ended September 30th, 2024 was $264,000 versus an adjusted EBITDA loss of $1.4 million in the same period last year. This improvement was driven by increased product sales, full transition of airports to the company's control, resulting in increased security services revenue, and the effect of cost reduction initiatives put in place beginning in 2023 and continued into 2024. Net loss for the three months ended was $1.6 million, as compared to the three-month loss for September 30, 2023, of $6.3 million. In the prior year, the company recognized a one-time charge of $2.8 million related to the loss of control on its quad subsidiary in the third quarter. The company had approximately $223,000 cash on hand, an undrawn credit facility of $2.1 million, and working capital of $4 million as of September 30, 2024. We're happy to see continued strength in our financial performance this quarter. Our year-over-year revenue numbers reflect significant growth in product sales and strong, consistent billings in our services. I'm very pleased with our margin improvements as this has been a large focus of our work and efforts over the past year. Our product sales margins were up 10% to 52% from the previous year, and services were up 18% from a negative 3% margin the year before. We believe that we can continue to improve these margins and that will contribute to our goal of overall profitability. While our current results have enabled us to continue to achieve EBITDA positivity, we still need to keep our heads down and focused. We're continually evaluating other fixed cost reductions to further increase annualized cost savings and work to reach profitability. With that, I'll turn the call over to our founder and CEO, Mr. Sean Krakowski. Sean.