Theralase Technologies Inc.

Good morning and thank you for joining us today. I'm Matthew Periton, Investor Relations Manager at Theralase, and it's my pleasure to welcome all shareholders and stakeholders to our first quarter 2026 Financial Statements Conference Call. We appreciate your ongoing support as Theralase executes on its strategic objectives, marking a pivotal phase in our transformation from preclinical research through clinical development to commercialization. Forward Looking Statements Before we begin, I would like to remind everyone that today's presentation may contain forward-looking statements as defined under applicable Canadian securities laws. Participants should not unduly rely on these forward-looking statements. They are not a guarantee of future performance, and there can be no assurance that they will prove to be accurate in the future. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results or future events to differ materially. Although all forward-looking statements made today are based on what management believes to be reasonable assumptions, the company cannot assure investors that actual results may align with these expectations. All forward-looking statements are made as of today's date and are subject to change without notice. Except as required by law, the company assumes no obligation to update or revise them. This call will be posted on our corporate website in due course. Our Phase II cancer clinical study has now completed our target enrollment of 90 patients, enrolling 92 patients in total, although additional patients may be enrolled in 2026 in our Canadian clinical study sites. Of the 92 patients, 82 have completed the study, with the remaining 10 patients currently on study. There are plans to file a new drug application under rolling review for marketing approval with Health Canada and the FDA in third quarter of 2026. Pending Health Canada and FDA approval, Theralase estimates achieving marketing approval in Canada and the U.S. in the first half of 2027. Completion of enrollment in the Phase II Bladder Cancer Clinical Study allows the company the following new opportunities. 1. Exploring increased efficacy in the combination of light-activated Ruvidar with an FDA-approved drug, Aciladrin, in collaboration with Faring Pharmaceuticals. 2. Developing energy-activated rutharin for numerous cancers including glioblastoma multiforme, a deadly form of brain cancer, non-small-cell lung cancer, pancreatic cancer, colorectal cancer, muscle-invasive bladder cancer, leukemia, lymphoma, and multiple myeloma. 3. Developing rubrar for the topical treatment of herpes simplex I lesions, more commonly known as cold sores. Achieving marketing approval of light-activated Rubidor for non-muscle invasive bladder cancer would allow the company the opportunity to generate significant revenues both in Canada and the United States from the commercialization of this technology to healthcare practitioners focused on the treatment of bladder cancer. Theralase is thus in a transformational phase of its development, financially, clinically, and strategically. Today's call will provide insights into our First Quarter 2026 Financial Performance and Current Capital Financing Initiatives Interim Clinical Data from Study 2 for the Treatment of BCD Unresponsive Non-Muscle Invasive Bladder Cancer Carcinoma in Situ Expansion of our Drug Pipeline into 9 High Value Indications Our Strategic Vision including Institutional Financing and the Potential U.S. Initial Public Offering with Concurrent U.S. Institutional Financing We believe that the progress that we've made over the last few quarters and the steps that we plan to take in the quarters ahead will out there lays the ability to become a fully operational, self-sustained pharmaceutical company in 2027. Now that we've covered the required disclosures and overview, I would like to introduce our Chief Financial Officer, Ms. Kristina Hachey.

Thank you, Matthew. Before we review the numbers, please note that all financial amounts I will be presenting today will be rounded to the nearest thousand Canadian dollars for clarity and simplicity. For financial amounts accurate to the dollar, please refer to the first quarter 2026 financial statements available on both CDAR Plus and our corporate website. Overall, Theralase continues to demonstrate strong financial discipline, advancing our clinical platforms with a limited balance sheet, while continuing to invest in preclinical research that may unlock significant future shareholder value. Due to the fact that all of our oncological programs are pre-revenue, total revenue for the three-month period ending March 31, 2026 was derived solely from business-to-business sales and service of our cool laser therapy systems, which increased from 91,000 to 133,000, a 45% increase year-over-year. In Canada, revenue increased from 76,000 to 124,000, a 62% increase, while revenue decreased 39% from 15,000 to 9,000 in the U.S. The company's limited balance sheet required management to prioritize capital allocation toward advancing its lead bladder cancer treatment program, while maintaining a focused domestic sales strategy rather than deploying significant resources toward broader U.S. market expansion. As the company's balance sheet strengthens, management anticipates increasing investment in marketing and commercial initiatives across both the Canadian and U.S. markets. With enrollment now completed in the company's bladder cancer clinical study, Fairlace Technologies Inc. plans to reinvest across both its drug and device divisions to support current operations and future growth initiatives. Management expects that increased investment in the device division will support revenue growth, while additional investment in the drug division is expected to facilitate the advancement of multiple new clinical development programs and indications. Moving on, gross margin increased from 13,000 to 64,000, a 392% increase. Operating expenses for the period ending March 31 compared to the prior year were comprised of selling expenses of $67,000, which decreased 2%, administrative expenses of $464,000, which decreased 16%, and research and development expenses of $565,000, which decreased 36%. The net loss for the three-month period was $1,032,000, which included $172,000 in non-cash expenses, such as amortization and stock-based compensation, a 30% decrease over the prior year. In terms of capital, the company has successfully raised approximately $7.5 million year-to-date and $13.2 million over the past 24 months. with significant participation from institutional investors, insiders, and long-term shareholders. This capital has been strategically deployed to complete enrollment in our bladder cancer clinical study and advance our energy-activated Lutheran platform. To further strengthen our balance sheet, we have recently closed a $4.8 million brokered and non-brokered offering on May 20th. In addition, Theralase is exploring an initial public offering in the United States later in the year or early next year in the hopes of significantly broadening our shareholder base, improving stock liquidity, and providing the company with additional capital to further expand our clinical pipeline.

Thank you, Kristina, for Theralase's first quarter, 2026. Financial Update Now, an investor relations summer intern of ours, Courtney, will provide an update on our bladder cancer clinical study.