Venzee Technologies Inc.

Good morning, ladies and gentlemen, and welcome to the Vansi Technologies Q1 2022 Results Conference Call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. Questions can be submitted at any time through the online webcast player. I would now like to turn the conference over to CEO of Venzi Technologies, Mr. John Abrams. Please go ahead.

Thank you, operator. Again, welcome to Venzi Technologies' sixth earnings call. Today we will be covering our Q1 2022 results. My name is John Abrams, and since late 2019, I've led the company through a transition from a rough concept to a fully functional platform with active and expanding revenue-generating clients. Venzi is an AI supply chain platform, now beginning to build revenue and, importantly, attracting significant growth opportunities. In a moment, I'll address developments since our last call, and following my brief remarks, our CFO, Darren Battersby, will provide the financial details of our progress. We will conclude our call today, as we always do, with some Q&A. Before we get started, I want to let you know the earnings release referenced in this call, the associated MD&A. as well as any slides we may speak to, can be found in the Investors section of our website. Today's call may include forward-looking statements about Benzie's future performance. Actual performance could differ from what is suggested by our comments. Information about the factors that could affect future performance is contained in our CDAR filings. For those of you that attended our earnings call May 3rd, many of my remarks will be familiar. As such, we will have a fairly quick call today, hitting mainly on large contract status and other positive developments. As we discussed on our last call, we will key on revenue as a measure of progress. As you can see, subtracting some one-time integration fees reflected in Q4, revenue remains insignificant. We realize and feel the pressure to move beyond this stage into material revenue growth. But let me tell you why our team remains excited about our revenue potential, given where we are today. First, while several of our 2021 partner engagements ended abruptly due to acquisition by competitors, two engagements have moved forward and have completed integration with our platform recently. Following integration, we've seen two brands validate retail connections and subsequently request additional connections. While the revenue result is trivial at this early stage, It is increasing. Second, two significant contract revenue opportunities, opportunities that we have discussed previously, continue to move forward, albeit more slowly than we would like, but with clear progress and through some rigorous testing, real validation of our solution. Two other recent items we view as positive, and one as even potentially significant. The first, in late 2021, we redesigned our website to allow direct purchase of our retail mesh connector product. We did this to stick a marketing finger in the eye of our competitors, who only provide a limited number of retail connections, even after a lengthy build process. We are different. With Venzi, and we say on our site, you can pick any of several hundred retail connections and activate them immediately with just a credit card. We expected this marketing message would generate sales leads, and it has. But recently, it has generated sales. Small indeed, but this is a radically different approach in our market, and we now can show revenue as a positive proof point. We expect site-based revenue generation will increase over the year at some level. Second, and a potentially significant item, A partner who has previously validated our technology has expressed a desire to secure a more advantaged position for the use of our technology for their client base. We are excited to have additional validation of our platform and will work with the partner to produce a mutually beneficial result and add to our revenue in line with our full year goals. We main resolute in our mission to grow sales and create shareholder value. Because today's broken manual supply chain will be replaced with digital tools such as ours, we know we will be successful in growing our sales and creating significant shareholder value. I conclude my remarks today with this summary. We have significant contracts on our plate. We are well engaged with large customers. We have early evidence of durable recurring revenue, and we have some revenue opportunities emerging that we didn't expect. Like many advanced technology plays, we feel the pinch of the capital markets right now and are responding. We made the difficult but prudent decision to reduce operational expenditures that extend our runway in line with our maturing pipeline opportunities and the deals we have in active contract negotiation. We have an open funding round and we expect to close this round successfully because we have committed investors who believe in the merit of our approach and see the evidence of growth that we see. Already, we have taken in some capital in this round, and when the markets tank, we made adjustments to the terms of the round to ensure its success. As I said on our last call, indeed, there is much to be encouraged about at this early stage of Venzi's growth journey. We have an outstanding team. We have small but growing revenue. We have no churn. We have proven demonstrable tech advantage. that market participants continue to validate. We have begun to grow. We have begun to win clients in a supply chain market that is every day moving to embrace the advanced technology Benzi uniquely offers. Now, for details on our financial results for the quarter, I'm going to turn the call over to our CFO, Darren Battersby in Vancouver. Darren.

Thank you, John. I'm CFO of Benzi. Technologies and a member of the Institute of Chartered Professional Accountants and Good Stand. Today, I'll be discussing the results for our quarter ended March 31st, 2022. The numbers I reference will be in U.S. denomination unless otherwise noted. From a revenue perspective, the quarter ended with $10,000 of revenue, up slightly from our $9,000 in Q1 2021. We continue to post positive annual gross margins. Our G&A costs for the quarter were approximately $1 million, Q1 fiscal 2021, we were about $900,000. We've made strides to reduce our burn for fiscal 2022. These will be reflected more in the second quarter. Overall, we posted net losses of $993,000 for Q1 fiscal 2022, giving us a zero per share loss per share, compared to $649,000 for Q1 fiscal 2021, which also gave us a zero dollars per share loss. In regards to our current capitalization table, we have 2,243 million common shares issued and outstanding, approximately 76 million warrants outstanding, 22 million stock options, and 1.9 million performance-based restricted share units. Fully diluted, we are approximately 343 million shares outstanding with a market cap of approximately 8.5 million Canadian right now. After the quarter we closed our non-broker private placement we previously announced March 30th, we did approximately 400,000 Canadian issuing about 5 million shares at $0.08 per share. Price at this level, we found some restrictions in the current market conditions, so we had to adjust our private placement to the exchange minimum of $0.05 per unit. So we're still looking to raise a million dollars. We are currently going to close our first Toronto very shortly. Thank you for your time. Look forward to interacting and talking with you, the shareholders. This ends the remarks from my discussion. I'll hand it back to John.