Hydreight Technologies Inc.

and we'll try to get to as many as we can. We did get some emailed in too, so we'll make sure we do refer to some of those as well. If we don't by any chance get to your questions, please shoot us an email at ir.hydrate.com, and we'll try and answer your questions there as well. This presentation contains forward-looking statements under applicable Canadian and U.S. securities law, and these statements reflect current expectations regarding future operations, growth, products, and performance, but involve risks and uncertainties that may cause actual results to differ materially. Hydric Technologies, Inc. does not undertake to update these statements except as required by law. Investors should refer to our filings on CEDAR Plus for additional risk information. And we're just going to give it a few more moments here before we begin. We hope you guys all had a great American Thanksgiving yesterday and got to enjoy some good food and company, as well as I'm sure watching some of those football games happening yesterday. just maybe about half a minute before we begin, just to be mindful of everyone's time here as well. Again, this webinar will be recorded, so we will try and get this sent out to you guys as soon as possible too. All right. I think we will begin. For those of you just joining us, welcome to Hydrate Technologies Q3 earnings call. And we will pass it off to Shafin Tajani to start.

Thanks, Abby. Like Abby said, before we get started, just wanted to say I hope everyone in the U.S. had a great Thanksgiving time with family, time to recharge. And thank you for spending part of your post-holiday time with us today. For those of you who've been with us since the early days, I think you can feel it. Something has fundamentally shifted. Hydrate isn't a story anymore. It's a business. A business with real revenue, real margins, real scale, and a model that's getting stronger with every single month that we go by. So let's start with the numbers. This is the KPIs, the key financial metrics that we kind of look at. So we wanted to kind of summarize Q3 in a snapshot. Gap revenue was up 132%. Top line was around 12.83 million with nine month top line at 26.71 million. That's four straight profitable quarters. Cash on hand right now is about 18.64 million and margins are sitting at about 28.21 year to date. This is the part of the story that matters most. We're not growing at the cost of profitability. We're growing with profitability baked in. The model is scaling exactly the way it was built to.

Thank you, Shafin. Thanks, everybody. Just to echo the comments. Thanks for your time. Thanksgiving in the US yesterday. So hopefully everybody had a great day. I'm just going to go back over again, just the kind of vision for the company. I won't spend too long. Obviously, this is an earnings call. And I know most people know the story, but I think it's very applicable to. some of the things we'll talk about in a more granular level later in the call so um obviously um the goal for 2025 was was was largely based around the release of our third vertical which which has an incredible scaling uh aspect to it from not only the medications being recurring but also the the mode that we're providing and building out that direct to consumer ecosystem But that was the third vertical of a larger vision, of course, which was Hydrate Technologies that was founded in 2018. The goal of the company was to address the reactive nature of the health care system in the United States, which, of course, was not sustainable. Certain things outside of anybody's control kind of highlighted the vision that Hydrate had. And we were perfectly positioned to take advantage within our first two verticals when the unfortunate pandemic hit. happened, shining a light on the need for accessible health care. Then, of course, the Ozempic craze, as we call it, shone a light on the virtual care self-administered model. But Hydrate's vision was to address the $6 trillion spend of which 90% of it in the US is classified as chronic care. So it is technically preventable if the right measures were there. And so we created a 50 state medical company. We went vertical by vertical, starting with the nurses vertical, which is essentially mobile health and wellness, where a provider is giving a true health care service in a remote setting. And that has gone year on year, you know, scaling at a very aggressive rate. We are the only company still, we were first movers back in 2018. We're still the first company to allow nurses to essentially monetize their credentials outside of your traditional bricks and mortar. Again, why we get called sometimes by third parties, the Uber for nurses around the independent contractor side. Again, we'll go into some granular level details later. later in the conversation here. But our second vertical was based around the non-traditional doctor's office. Again, this is the vision of preventative healthcare. Hydrate Technologies recognized that Essentially, the health care system was not sustainable, and it was going to go in three areas. It was going to go mobile health and wellness. The bricks and mortar component would comprise of the non-traditional doctor's office, but still true health care. So it has to comply with medical boards, pharmacy boards, nursing boards. And then, of course, the third vertical was the direct-to-consumer virtual care, where the product is actually sent to the home and is self-administered by the client themselves. So again, our goal for 2025 as Hydreed was to continue growing the first two verticals, which have been growing year on year, you know, 30% plus, and to release and the effective execution of that release of our direct-to-consumer model. We've achieved that, essentially the third quarter being the best quarter in the company's existence. It's the first full quarter of revenue recognition on that third vertical and true validation of the mode that we have created. Sometimes it feels like we've been talking about VSDH1 for a couple of years now, but really it is brand new. As I said, the first full quarter of revenue recognition was Q3. We'll talk a lot more detail about those. But again, the validation of what Hydrate has created, a 50 state medical ecosystem based around compliance, where corporate practice of medicine laws in the United States are very real. It's a federal offense unless you have a specific structure to be in the practice of medicine and monetizing that in 30 of the 50 states. In the other 20 states, which are non-CPOM, there are still other kind of prohibitors, barriers to entry. So again, we've created an ecosystem addressing three different, very different verticals. And our goal was to execute that third vertical in 2025, of which we can be very proud of our execution.