Snipp Interactive Inc.

Malcolm, just checking the sound here. Can you hear me all right?

Yeah, I can hear you perfectly.

Okay, as can I hear you. Okay, let's start. It's 10 o'clock. Good morning. Thank you for joining us for this call. I think I should start recording. Sorry, give me a second. Yeah. Thank you for joining us for the SNP Interactive fourth quarter and portfolio 2025 earnings conference call. I am Atul Savarwal, founder and chief executive officer of Snip Interactive. Joining me today is Malcolm Davidson, interim chief financial officer. Please visit our investor relations site at snip.com for a copy of our earnings press release and detailed financials, which have also been filed on CEDAR. We present all financial figures in U.S. dollars unless otherwise indicated. Before we proceed, I'd like to remind everyone that today's discussion may contain forward-looking statements. These statements are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially. Okay, so I want to start with a frame for everything I'm about to say because I think it matters more than any single number on the page. Fiscal 2025 was the year SNP chose to stop being a promotions company that did some technology and start being a technology company that does promotions. Promotions that are verified, AI powered and built to compound. That repositioning is not a slogan. It is a deliberate pivot in our positioning and the work we did in 2025, the brand, the cost structure, the contracts we signed, the platform we re-architected, is what gives me real confidence in standing here today and telling you the next chapter of this company is materially better than the last. The proof of that is us landing the Shen Capital investment on the back of our recurring revenue growth, something we have not historically focused on disclosing. On the 2025 results, let me address the financials directly because you have read them and so have I. Revenue for the year was $22 million against $22.7 million in 2024. a slight decline of roughly 3%. That softness is real. It reflects a market in which several large clients delayed or scaled back plan campaigns. It reflects an industry that is very visibly in transition, especially given the macroeconomic impacts over the last year. But I want you to look at three numbers next to that revenue line because they tell you what kind of business we actually are funding it. First, gross margin. 61% for the full year, identical to 2024. In the fourth quarter, 65%. When revenue compresses and gross margin holds, that is a signal about the quality of the platform, not a signal about distress. Second, bookings backlog. 18.26 million of contractors not yet recognized revenue at year-end, up from 17.7 million the year before. We focused on longer term engagements as opposed to three to six months shorter promotions. The increased backlog is visibility to some 2027 plus revenue. Third, cash. Well, we closed the year with 3.4 million cash. Most of it is earmarked for to be distributed rewards. As a result, we secured a Canadian 4.5 million senior secured convertible debenture financing led by strategic investors. who are aligned with the long-term thesis. This included insider participation. This company is funded to execute its plan. Summary, mediocre top line, intact margin, growing backlog and fresh capital. That is not the profile of a company in trouble. That is the profile of a company in transition and the transition we chose in 2025. So what do we actually build in 2025? In March of this year, we launched our refreshed brand and our new market positioning. Marketing verified from ad to aisle. These are not marketing words. They describe a category that is forming in real time around us. A category in which the world's biggest consumer brands are demanding that every dollar of marketing spend be tied to a verified, skew-level purchase outcome. Not modeled. Not estimated. Verified. Snip has been quietly building the infrastructure for that category for more than a decade. AI-powered receipt validation, AI-powered fraud detection at scale, a first-party data layer that turns campaign engagement into measurable business intelligence. We have seven integrated solutions, SnipCheck, SnipWin, SnipLoyalty, SnipRewards, SnipRebates, and SnipOffers, all unified on a common AI-powered platform that drives fraud mitigation, verification of purchase, with a unified view of data via a SnipInsights tool. In 2025, we made two deliberate choices about the platform. We chose to invest in it. We built AI receipt validation, re-architected our fatalist loyalty platform, and into the very early stages of building out a unified campaign OS that I will talk about in the future quarters. And we chose to tell the world finally what it actually is, the new brand, our 2026 AI Shopper Marketing Technology Landscape Report, and the work we are doing on investor disclosures. They all serve the same purpose, making it impossible for the market to keep mistaking slip for a campaign agency when in reality we are the verified attribution layer that the rest of the industry is racing to build. Let's talk about commercial momentum, stuff that the headline numbers don't show. Inside that flat revenue line, the mix is changing in exactly the direction we want. In March 2026, we secured a $3.3 million two-year contract extension with a marquee pet care client. This is the largest single contract in the history of this company, and it expands the loyalty program that has performed so well, the client doubled down on it. Earlier in the year, a US $1.4 million two-year extension with another leading pet care brand. After year-end, a new $1.3 million multi-year agreement extending a major FMCG relationship through September 2028. In November, we added a US $500,000 plus program with a multinational food manufacturer and another US $745,000 contract to build a new professional-focused loyalty program for a global pet care brand. On the financial media network, we executed an industry-first partnership with Inmar Intelligence, integrating their digital grocery incentives into a network that already reaches more than 60 million banking customers through Bank of America. and other major U.S. financial institutions. Currently, the bank is reforming their office product with a new technology window, so we will be relaunching again with them as they complete that migration. Every one of those wins shares the same DNA, multi-year, recurring, AI-powered, and anchored in verified purchase data. That is the SaaS company we said we were going to become, and the contracts are approved. So let's switch to cost and talk about our discipline on the cost side. None of this works if we don't earn the right to invest by being disciplined operators. So we have been. Between October 2025 and today, we have implemented approximately 1.3 million of annualized run rate operating expense reductions. We restructured our commission framework to reward recurring revenue, not one-off bookings. We wound down underperforming go-to-market structures in Europe and in the U.S. business development team. We rationalized non-core software and third-party spend. And we're not done. Another set of cost actions is being finalized for the second half of this year. The consolidation of engineering delivery into our lower-cost India hub, a realigned executive structure, and a deliberate relocation of third-party spend to fund our AI roadmap on a budget-neutral basis. The market we are walking into, let's step back from SNP for a moment and look at the world our customers are living in. AI is rewriting the marketing technology stack in front of our eyes. Brands are under enormous pressure to prove that every marketing dollar produces a real, measurable, attributable sale. Retail and financial media networks are exploding. First-party data has gone from a buzzword to a board-level priority. Privacy regulation has made retailer-agnostic, consented purchase data more valuable than ever. Every one of those trends, every single one, plays directly to SNP's strengths. AI-powered receipt and transaction validation, fraud detection, retailer agnostics, Q-level visibility, all trends that affect our business positively. A platform that ties promotions, loyalty, rebates, and media spend to a verified purchase is an essential part of the marketing stack now. So we are not chasing the AI wave. We are one of the platforms that it is being built on. Okay, so let's talk about the path forward, right? In plain language, in 2026, we will get the housing order. We narrow EBITDA losses meaningfully, so the cost action is already underway. We stack recurring revenue from the renewals and extensions we just signed. We sharpen our investor disclosures so the market can finally see the high-margin recurring fast engine inside this business, and we keep investing carefully in the AI capabilities, and that represents the next leg of value creation. In 2027, we drive the EBITDA inflection, recurring revenue compounds, the full-year benefit of cross-action lands. So, you know, before we move on to Malcolm's comments, what I'd like to say is, you know, The industry's tagline of the next five years is prove it. And the company whose entire reason for existing is to prove it by definition, you know, has a structural tailwind. It will be hard to design on purpose. I think it's important for people to understand our new branding reflects that. So, Malcolm, let's go to your comments.