Nanalysis Scientific Corp.

Okay, Jake, the floor is yours.

Okay. Good afternoon, everyone. Welcome and thank you for joining the Analysis Scientific Corps Q3 2025 earnings call. I am Jake Boma, an IR consultant for analysis. Today on the line discussing analysis Q3 2025 financial results and company highlights are the company's president, CEO, and founder, Sean Krakowski, and CFO, Randall McRae. Following their remarks, we will open up the call for an analyst Q&A session. Before handing over the call to Sean and Randall, please note that information we present today could contain forward-looking information that is based on management's expectations, estimates, and projections. Please consider the risk factors, including those in the findings made by analysis on CDAR when reviewing this information. Also, all amount discussed will be in Canadian dollars unless otherwise noted. With that, I'd like to turn the call over to Analysis CFO, Randall McRae.

Thanks, Jake. It's a pleasure to join and speak with everyone on the call today. First, I'll dive into the financial results for the third quarter, which ended September 30th, 2025. All amounts referenced herein are Canadian dollars. Financial highlights for the three months ended September 30th include the company reported consolidated revenue of $9.3 million, a decrease of $1.3 million or 12% from the comparative period in 2024. Within the product sales segment, this decline was due to shedding of certain lines of business that we discontinued and macroeconomic uncertainty. Sales of capital equipment remained slow globally with increased pricing pressure, resulting in a decline in overall revenues. Within the security services segment, security services revenue increased by 10% year-over-year due to increased project work related to the airport security maintenance business. Gross margin percentage for product sales for the three-month period ended September 30, 2025, was 44% versus 52% from the comparative period in 2024. This was a result of lower manufacturing utilization as the company faced supply chain challenges related to its magnets during the third quarter. These particular challenges were resolved during the fourth quarter. While gross margins for Q3 2025 were 8% lower compared to Q3 2024, gross margins for the nine-month period ended September 30th, 2025 increased by 8% over the same period in the prior year due to continuous improvement programs within manufacturing. Gross margin percentage for security services for the three-month period ended September 30th, 2025 was 14% versus 15% from the comparative period in 2024. The new management team in that business has initiated improvements including better scheduling, enhanced logistics processes, and more effective management of overtime and on-call hours, which the company expects will continue to improve margins for the remainder of the year as they've done since the first quarter. Adjusted EBITDA loss for the three months ended September 30th, 2025 was $2,000 versus an adjusted EBITDA profit of $545,000 for the comparative period in 2024. This was primarily the result of a drop in scientific equipment sales in the quarter. Net loss was $1.5 million for the three months ended September 30, 2025, which is an improvement of $144,000 from the comparative period in 2024. The decrease in net loss was due to lower depreciation as a result of the impairment of an acquired intangible asset in 2024, and the fact that losses from associate are no longer recorded in the consolidated statement of loss and comprehensive loss due to the impairment of the quad investment in 2024. With that, I'll turn the call over to our founder and CEO, Sean Krakuski. Sean.