OneSoft Solutions Inc.

Good morning, and thank you for joining us for OneSoft Solutions inaugural financial conference call to discuss its financial results for the second quarter of 2023, ending June 30th, 2023. On the call today, we have OneSoft CEO, Duane Kushneruk, CFO, Paul Johnston, and President and COO, Brandon Taylor. During the call, all participants are in listen-only mode, and the call is being recorded. Following the presentation, management will respond to questions, which you can submit anytime during the call. To submit questions, navigate to the lower section of the webcast frame where you'll see a form. Type your question there and press the button to submit. The questions you submit will not be visible to other participants. Before management discusses the results, I'd like to remind everyone 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 caveats about forward-looking statements and risk factors, please see OneSoft's MD&A for the quarter ended June 30, 2023 and for the fiscal year ended December 31, 2022, which can be accessed on the company's profile at CDARplus and on the company's website. I will now pass the call over to OneSoft CEO, Duane Kushnerich.

Good morning and welcome to everyone on the call. I'm Duane Kushnerich, OneSoft CEO. Since this is our first financial results conference call, and because we have attendees who are new to OneSoft, I'm going to start by providing an overview of the company, what we do, our industry, some history, and the progress we've made to date. Paul Johnston, OneSoft CFO, will then review financial information, followed by Brandon Taylor, our president and COO, who will discuss operational highlights. We'll wrap up the formal part of the presentation with our outlook for the remainder of fiscal 2023, and then we'll address investors' questions. Note that we report in Canadian dollars, so all financial information presented is presented in Canadian dollars unless otherwise stated. With that, I want to start by providing a high-level company and industry overview. One Thought Solutions is a software company that uses cloud computing and machine learning to help oil and gas pipeline companies operationalize their data to increase safety and efficiencies and to reduce risks and costs. Essentially, we help pipeline companies to manage their assets and realize their common objective of zero pipeline failures. Our mission is to predict pipeline failures, save lives, protect the environment with the assistance of data science and machine learning. By way of history, our current management team sold our last software company startup in 2014, and that company developed on-premise software applications. We paid most of the gain on sale out to our shareholders and reorganized our company in 2015 to pursue born in the cloud software as a service or SaaS opportunities. OneSoft was one of nine companies selected from 721 candidates who applied to participate in Microsoft's first accelerator for data science and machine learning. One reason OneSoft was selected was because Microsoft was looking for companies that they thought could drive digital transformation and significant consumption of its Azure cloud platform by enterprise level corporations. And OneSoft was chosen, the only company chosen for energy enterprise companies. So part of our team actually moved, lived and worked in Seattle for the first half of 2016, where they worked directly with the Microsoft teams who were tasked with rolling out Azure and Power BI and the other components of Microsoft's new cloud platform. Our prototype SaaS solution, which we call Cognitive Integrity Management, or SIM, was rolled out late in 2016. Phillips 66 signed on as our first customer in January of 2017, and they ran SIM in parallel with their in-house Oracle-based solution that they had developed as an on-premise solution. application over the prior 16 years by the end of 2017 so the end of the first year phillips had experienced the advantages of using cloud computing machine learning and they made the decision to proceed with replacing their in-house solution with sim they provided their software ip to our company along with $3 million of funding so that we could incorporate all of this comprehensive functionality that they had developed into SIM to operate on the Azure cloud platform. By the end of 2018, we were able to deliver SAS functionality that really all pipeline companies need to operate their business, including advanced data analytics that we leveraged with machine learning. and along with the capability to address regulatory compliance issues and all sorts of operational logistics. OneSoft today owns the IP to that cloud version of Phillips on-premise software, which is now fully embedded in our SaaS solution and used by all of our customers. Essentially, SIEM contains cradle-to-grave functionality that all pipeline companies need to operate their businesses so that integrity management, threat monitoring, data analytics, and to handle operational logistics. We fast forward to today, and we now have 15 Hallmark customers who use SIM. And this list, as you can see, is mostly Fortune 5100 and 500 companies. Our client list also includes two of the industry's super majors who both have international operations. It's worth noting that some of our customers have recently acquired other pipeline operators. I think in the last year, five such acquisitions have been announced. And what this will do, this actually serves to increase the pipeline mileage we have under contract and future revenue. We've also signed our first Australian and Canadian customers, and we are currently engaged with potential sales projects in several international markets. Management believes that we have a significant multi-year head start, and we're not aware of any other solution that has been commercialized to date worldwide that leverages cloud computing, machine learning, and data science. Really the only competition we encountered today are legacy systems and processes. We believe that our SIM platform has established a new de facto standard that leverages these technologies and reflects the next generation solution for the industry. Our last capital raise was an 8.1 million net financing that we did in April 2019, and we have since managed our cash very carefully. Our cash at the end of Q2 of 2023 was $5 million, and the company's only debt is about $350,000, which is remaining to be paid for an acquisition that we closed in 2022. I want to emphasize that OneSoft does not develop or operate or sell hardware or any devices. Our business is focused on building this cloud platform that automates the ingestion, the alignment, and the analysis of various different data sets, regardless of where this data comes from and how it's collected. This is all data that pipeline operators need to manage and maintain their pipeline assets. I want to talk a little bit about the industry and the markets we are addressing. There are approximately 2.7 million miles of oil and gas pipelines in the United States, which represents about 60% of the global infrastructure. About 660,000 of these miles are inspected using devices called pipeline inspection gauges or pigs in the industry vernacular. So these pigs are inserted in the pipelines and they collect data as they travel along the pipe using a variety of sensors that look for potential threats to failure. From the outset of our business, we decided to focus on US pipelines first because they're highly regulated. Regulators require that TIG runs be done at minimum every five or seven years, depending on whether the pipelines transport liquid or gas. Legacy processes to maintain pipelines typically use on-premise software. and about 80% of the operators we've dealt with used Excel spreadsheets to store and analyze their pipeline data. We think this is disadvantageous for a number of reasons. Because on-premise computing can't easily accommodate big data, most of the data collected, and as much as 95% in some cases, is filtered out and not even considered for predictive analytics. Analysis is often limited to a single pig data set with no efficient way to compare current and historic pig data sets. Today, data is typically siloed at midstream pipeline operators and not easily accessible by all staff responsible for the various operational tasks. i.e., the roles of the integrity and the risk and the corrosion and the crack and the geohazard personnel are typically not integrated, and data does not reside in a common database that multiple departments can use and access. This all contributes to less accurate and much more time-consuming and costly data management and analysis, which negatively affects operational efficiencies. SIM, on the other hand, represents a revolutionary approach to a pipeline and data management. So we harness the supercomputing power of Microsoft Azure Cloud Platform, which can easily handle big data and advanced data science. This allows us to ingest, align, track, and analyze 100% of the data has been collected. And some of this goes back decades. which gives us more comprehensive and accurate analysis. SIM was designed to be vendor agnostic, meaning that regardless of the source of the data, whether it comes from governments, things like soil types across the U.S., weather data, earthquake data, or collected by pig vendors, or other third-party devices or parties, things like SCADA, satellite, LIDAR, Our proprietary machine learning algorithms can automatically ingest, normalize, and align all of this data into a single platform where it is analyzed essentially at the push of a button. Without such automation, data ingestion and alignment represents the bulk of the work effort required to manage and analyze data using legacy systems. With SIM, data is no longer siloed and is accessible in a central repository by all SMEs who need it, whether their roles involve integrity management, risk, corrosion, crack, geohazard, it doesn't matter. The long and short of it is SIM provides greatly improved data management and thereby increases efficiencies and safety while reducing operational costs. Hopefully, this provides new investors with a good sense of what we do and the market we are addressing. I would now like to pass the call to Paul Johnston, OneSoft CFO, to review the company's Q2 2023 financial information. Paul?

Thank you, Duane. I'm Paul Johnston, and I'm OneSoft CFO.