Let's get started. Hi, everyone. Thank you for joining the BuildDirect investor webinar today. For first time viewers, BuildDirect is a leading omni-channel building material retailer that connects North American home improvement B2B and B2C organizations, and homeowners with quality building materials and services through its robust global supply chain network. Today, BuildDirect is listed on the TSXV under the ticker symbol BILD, B-I-L-D. My name is Prit Singh, and I will be the moderator for today's presentation. Our presenters today will be the CEO of BuildDirect, Shawn Wilson, and the CFO of BuildDirect, Matthew Alexander. Before we begin, just some housekeeping rules. Please remain muted throughout the presentation. The investor presentation will take approximately 20 minutes, followed by a Q&A period. If you have any questions during the webinar, please send them in using the Zoom Q&A function located at the bottom of your screen. If you are calling in to listen to this webinar today, please email your questions directly to ir@builddirect.com. Again, that's ir@builddirect.com. With that out of the way, I will turn the call over to BuildDirect's management team. Perfect. Thanks a lot, Prit. Before we jump into the material, quick background for those that have been following the story. BuildDirect was founded over 20 years ago in Vancouver. The initial goal was to be the Amazon of building material. I'll call that BuildDirect 1.0. There was significant investment to achieve that goal. The strategy wasn't successful. Poor timing, poor execution, lack of some recurring revenue. Results of that was CCAA in 2017, 2018. The existing investors at the time recognized there was a ton of remaining assets that still existed, like relationships with manufacturers that allowed us to source directly from manufacturers around the globe. A logistics network that still allowed us to service virtually all the U.S. states. Domain authority for our websites and a tech platform that we could leverage. From that, BuildDirect 2.0, I'll call it, using those assets and narrowing the focus to just flooring, our best category, and focusing on our profitable segment, which is the pro segment, which provided a recurring revenue stream for us. The company shifted from out of that 1.0 to 2.0 and used that story to go public on the TSXV on August 13th, 2021. With that raise, we raised CAD 20 million to help fund the company's growth strategy, and we acquired another company in the U.S., called Superb. The company today, just as a quick hits in terms of stats for you, we're around $90 million in terms of revenue annually. Also a note, information here going forward will be presented in U.S. dollars. $90 million revenue per year. Positive adjusted EBITDA for 2022. Expecting that to improve going forward into 2023. New leadership is in place. Which feels like they can use the assets that we have as a company and the revenue base and the stable financial footing we have to drive growth in the future. With that, I'll pass it over to Shawn Wilson, the new CEO at BuildDirect. He joined BuildDirect 4 months ago. He's a seasoned home improvement executive with cross-functional experience throughout the building material industry, including e-commerce, big box retail, manufacturing, installation services. He's a proven leader, skilled at developing teams and effective strategies to deliver profitable growth. As the BuildDirect, we're thrilled to have him on board, and I'll pass it over to Shawn. All right, Matt, I appreciate it. Let's go ahead and move forward here. All right, guys. BuildDirect has definitely a pretty, a pretty great foundation to build off of the U.S. flooring industry and also Canadian. You know, really is a great industry in that it's construction-based, it's needs-driven. Also in good times, you have new construction and, you know, big, big projects. In tougher times, you have people dig in and refurbish their homes. With BuildDirect, we have a really interesting omni-channel platform that today consists of our e-commerce business that serves some homeowners, but mostly pros. Then also, our brick-and-mortar, initial brick-and-mortar locations that serve pros. You know, I think about BuildDirect, it's pretty, it's pretty straightforward. We are providing a platform for the pro segment in the flooring industry to be able to build their own businesses on and facilitate projects. With that, we have a really tremendous value opportunity where we're able to provide that platform for pros with product services, which we'll get into here in a little bit, and cutting out a tremendous amount of costs while also delivering a better experience for their specific need. With that as well, when you look at our M&A program, it's very intuitive. It makes a lot of sense. We have capabilities that were built over the years, you know, based on Matthew's comments with BuildDirect 1.0, that frankly, when I came into the organization, I was just incredibly impressed by the supply chain, the efficiency. In the flooring industry, shipping big, heavy things across long distances can be a challenge for those things to arrive undamaged, unscathed at the right time and, you know, to facilitate a building project. Really, when I saw what BuildDirect had, you know, built over the years, it's incredibly impressive for the industry. Along with that, when you think about, when you think about really what the pros need, more specifically, for the flooring category because of how bulky, heavy things are and how important it is to tie materials with installation, the model really fits. One thing I would say, you know, BuildDirect didn't choose the pro customer, you know, really intentionally. The pro customer found and chose BuildDirect. If you look at, you know, really who shows up every day and shops and facilitates projects, it's our pro customer, and we're just now really starting to dig in there and provide, you know, more and more services along with products, and also really build out that marketing funnel, more, you know, more into more targeted perspective. So that, plus with a lot of industry experience, we come to the team with some deep e-commerce experience, financial experience, and also flooring experience, you know, both with the team at BuildDirect, myself as an addition, as well as our leaders in our brick-and-mortar locations who've been in the industry for, you know, for many years successfully, profitably. I would say just at a high level, our stats are pretty great. Our gross margin is has dramatically improved as we've, you know, got some things, you know, squared away. There's also a lot of growth opportunity there as well. When it comes to EBITDA, we have a great story there that we'll get into here in a little bit. Matt, want to go? When you think about the flooring industry, it's kind of an interesting industry. For the most part, the share hasn't changed much in a very long time. It's mostly fragmented. 65% of the industry is the small mom-and-pop. In the local community, you'll find a handful of these, you know, these players. When you think about kind of the why, a big portion of that reason is tied back to the installation component for floor covering and also having the right quantities, the right places to facilitate projects. When you look at the business, there's definitely a tremendous amount of market share to go after. What we get most excited about is the huge market that is actually pro-driven through referrals. You know, 80%+ of all flooring projects are sold through a referral. What's typically being referred isn't so much the product, but rather the installation experience. Not so much even the company facilitating the installation, but rather the installer, that professional contractor who's out there. When you think about that, it's kind of interesting. You have a $71 billion industry, 80% driven by the, you know, those who are actually facilitating the work, completing the projects, but are the farthest removed from the customer at the time of sale. For us, we get really excited about taking a big step back and saying, "Okay, flooring contractors derive this industry. They drive referrals, they drive excitement, they drive project, projects. How can we effectively help them develop a platform to be able to facilitate their own business? How can we provide them intuitive, easy access to products at true wholesale, direct to manufacturer? How can we provide other things they might need in order to facilitate those, you know, those sales with their end consumers? In so doing intuitively from our perspective, we leverage our capabilities, and we're able to step away from heavy customer acquisition costs because you're really starting to lean into that referral network. Matt, go. When you think about our current model today, we have three kind of distinct divisions. BuildDirect is our initial e-commerce platform, and there, the capabilities are pretty deep on, you know, both on the customer ac side, the funnel, transitioning those customers through the process, and also delivering directly to the job site. The experience is great, the reviews are great, and the claims on that model are, from an industry perspective, incredibly low. Our brick-and-mortar locations are in, you know, we have two brands. The first one is FloorSource. FloorSource for the most part kind of looks and feels a lot like BuildDirect, but with a physical location. They also carry carpet as well, which is difficult to ship, at least today. We have some things in the works, you know, across long distances. The FloorSource operations have products, they have merchandising programs, but they're effectively the local resource for the trade, the supply shops, so on and so forth. We do a lot to help, to help those, you know, the pros in the areas really transact their business. Superb is a division of ours that we acquired last year that effectively, you know, runs large specs, commercial specs, provides installation services, and traditionally has relied on large manufacturer specs, you know, from the industry's leading manufacturers. You know, with our BuildDirect sourcing model, we're starting to integrate the capabilities on the sourcing side into the other businesses. We'll find that we have a lot of opportunity to leverage the supply chain, fulfillment, so on and so forth, from the BuildDirect side into the other divisions. Also we're finding some backflow as well with capabilities that were developed and highly valuable at FloorSource and Superb that kind of flow back through. Although our model is very much a roll-up model, as we're evaluating companies, we're very much focused on pro-focused organizations, less homeowner or retail-oriented, and all three brands here fit within that, in that portfolio. The revenue streams for us today consist of product intuitively through our e-commerce and also through our brick-and-mortar locations. We're housing a phrase kind of interestingly. Think about the pro, the trade. There's two problems they have when trying to facilitate their own projects, aside from just having access to product to wholesale. If I'm a large contractor or even a small contractor and I'm trying to go out and set projects, unless I'm going to, like, a Floor & Decor where I'm paying retail, or maybe I get a 10% discount or something for being a pro, I have nowhere to put things. When you think about even a single customer's how, you know, flooring for their downstairs or their, you know, for a few rooms, you know, space becomes a real problem. Our model both on e-commerce and brick-and-mortar provides warehousing services, direct-to-home freight services, you know, for large projects. With that also, that enables us to service very large projects very seamlessly. you know, on the product side, that's definitely a huge advantage, but we're also exploring services as well. We're finding that in the feedback as we're learning more and more about our pro customers, and the services that they actually need to grow their businesses are things that we believe we can monetize both as a software solution, but as well as from a product pull-through, you know, pull-through perspective. On the installation side, we do offer installation services for our spec work, for large scale projects, in the Midwest. That's something for the most part we are gonna continue to leverage our pro-focused model for, you know, versus opening up, you know, a lot of new installation workrooms. You know, for the most part, BuildDirect is gonna be focused on helping the contractor, the pro, develop their business, which is intuitively the installation for the projects versus focusing on the installation model ourselves. Keep going. The from an organic perspective, it's pretty interesting. When you think about what we've done today, I mentioned before the pro really found BuildDirect, you know, with our model. We intentionally at first went out and advertised heavily with homeowners, and we developed an e-commerce experience that was more oriented towards that. We found that our model really fit with the pro customer pretty well. As the marketing team has started shifting over to developing pro-based funnels, branding, so on and so forth, value props, it'll be pretty interesting to see here how we can really organically grow the business. Our customer acquisition cost model, even today on the homeowner side, is pretty attractive. As we come into the company, you know, we're getting leadership established, we'll be able to effectively scale back up on the e-commerce side as well as interesting programs for our brick-and-mortar operations. Matt, go ahead and progress to the next slide. On the pro side, you can see our story here kind of told pretty, you know, pretty straightforward from 20 all the way to 2022. The pro categories that we really, you know, really focus on on the builder side, it's both spec home builders and also large track homes. But with that also we have a lot of realtor customers, a lot of property investors, flooring contractors referring to everything from individual trades all the way to multi crews to large installation shops. Along with that, on the multifamily and commercial side, we're finding a lot of traction on specifications. They go back to, you know, apartment complexes that are being built or condos. In the flooring industry, that's been relatively kinda locked from a manufacturing perspective. We're able to come in and provide tremendous cost cost reduction opportunities, value engineering on those projects. With that we're finding a lot of traction, a lot of growth opportunities. All these pro customers effectively have, you know, recurring model for us. The projects, you know, really when you're not geographically kinda constrained, becomes a real advantage because you'll find that they'll move from city to city, state to state, kinda so on and so forth. For us, moving product around the country is definitely an expertise and a core competency. For the future, when you think about services and kinda what our roadmap. Today we have, you know, a fantastic wholesale product offering for core pros. Warehousing and shipping has been a core competency the company invested and developed as well. Also on the spec services side, we have capabilities there where we can turn around large specs and respond to proposals and execute large orders. When you think about what's next, when I think about, you know, how can you really enable a pro to build their own business and leverage their capabilities, the types of things that we're working on are listed here. From an e-commerce perspective, being able to white label what we've built and allow them to put their brand on there and have a digital real estate, you know, piece when they don't have that physical location is a huge thing based on our pro feedback. Instead of opening up and going down the road, if they open up a shop, have a warehouse, have a showroom, incur all these costs, we have the installation, we have our via logistics, we have the ability to ship product, we have the ability to also provide them with the digital experience for their customers to help really provide great legitimacy for them and also product pull-through for us. Warranty programs, definitely something that we have that's pretty far along in the works. Also on things like payment and financing programs. You know, so often, you know, things like this just get overlooked for from a contractor's perspective. When you ask contractors, "Hey, what do you actually need to sell more projects?" You know, basic things like this, like digital real estate on the e-commerce side or the ability to process and offer payment terms for their customers is so often a limiting factor. I couldn't resist here. You know, BuildDirect is a e-commerce lead generating machine. We can scale up and scale down pretty great. From a lead perspective, our waste stream on leads for our e-commerce business that effectively we don't even need to get close to our cat goals because our machine works very well there. There's high value for those leads that are out there. All right. With that, when we think through kind of the future, we have some organic stories we've talked about on the e-commerce side. When it comes to adding, you know, additional footprints, additional locations, we definitely have a pretty good strategy to pick up additional to the trade-focused locations that, you know, really help us build out our omni-channel strategy, but then also help us invest more in the pro base in key areas. When you think about kind of the why there, we could do a lot for pros from a digital perspective. We are gonna do a lot there from that perspective. That ultimate local location where we also have inventory that's housed, we have retail sale associates that are able there to help them kind of real time and also provide carpet, which I mentioned before is a bit of a challenge through standard e-commerce models, is a pretty great strategy. For us, we'll be, you know, working through additional acquisitions that, you know, really have that specific kind of footprint and focus on the pro customer. Not really interested in retailers who are more focused on homeowners, but rather on the pro. From there, being able to plug in our capabilities we have from the combined group into those operations to help performance more and more and provide that true omni-channel experience for, you know, for our customers. With that, the when you think about the, you know, the targets, for the most part, you know, for the most part, you know, the consolidation will be, you know, major city growth areas. With that, we find on the acquisition side that there's a lot of great targets that are well-run, well-structured, but for the most part, they're kind of beholden to, major manufacturers, large distribution, struggle with technology, and then on the integration side, are highly fragmented. When we think through the, you know, the overall, you know, customer prof-- you know, so on and so forth, there are a lot of different parts of the industry that are interesting, that provide, you know, services, high service retailers. You know, for us, for the most part, we've found is the ability to come in, plug in these capabilities, and then from there, execute a pretty, you know, pretty effective roll-up. Go on that. Okay. Then on pipeline, this actually was started a couple of years ago. We have a pretty healthy pipeline, identify what that target looks like. And then from an acquisition perspective, we don't believe that the number of viable candidates will be a limiting factor. Rather, as we're working through making sure that we integrate, provide value service, and also just find the right types of acquisition partners with the right types of systems in place, leadership teams in place, kinda things like that. We don't feel like we'll be, you know, really limited by, you know, having to kinda take what's out there, but rather, be able to go in and buy kind of the best of the best that's out there. But with that, still being able to layer in some capabilities to increase gross margins. We kind of think about just at a really high level, you know, for most, you know, mid-size retailers out there in the flooring industry, when they're buying through major manufacturers or distribution, and when you shift into our direct model, the most part, you can pick up anywhere from 10%-15% gross margin improvement just from that switch. For us, we're really focused on finding, you know, well-run companies. We've done a great job so far with the with the pipeline development, and we'll continue progressing this one forward. On that. Okay. You know, with that, when you think about, you know, where we're at kind of, you know, today from a capability perspective and strength and kind of post through, we do believe, you know, for the most part, when you add in that local component, post-acquisitions, you know, really the grid gets pulled out. I do wanna kind of call out, when you think about Home Depot or Floor & Decor, you know, more specifically, for the most part, they're more retail-oriented, you know, targeting the consumer. Pros can shop because inventory is very local. I do wanna just kind of call out when you think about BuildDirect and you put our e-commerce platform together with our brick-and-mortar, it's more focused, much more focused on actually having a platform for the pro versus a retail operation that, you know, can also service the pro. Move it forward, Matt. Yeah. I think I can take over around the financial highlights here. I think with the numbers, we can show kind of the strategy playing out. I think in 2022, I think two big things that happened is we shifted our focus away from some of the homeowner, and we dropped our marketing spend, and we dropped some of the fixed costs related to that homeowner spend. We've been able to maintain our revenue year-over-year, which is a positive sign. We're backfilling a lot of that revenue that we've lost on the homeowner side with new pro revenue that's recurring and can continue going forward. You can see on the profitability side from an adjusted EBITDA perspective, we're seeing significant increase in our EBITDA, and we expect that to continue going forward into 2023. Touching on the leadership team again, I think Shawn's coming in with a new perspective around flooring and able to kind of understand the opportunity that we have. We also have strong CEO, myself, senior director of technology to help our platform and expand that throughout the different acquisitions, and a very strong category manager that helps ensure that we get top product directly from manufacturers, and we can take advantage of that cost benefit by going directly to the manufacturers. I think quickly on the board side, we also have strong institutional investors supporting the story. Got Timothy Howley from Pelecanus, one of the major shareholders. Milan Roy, Lyra Growth, one of the major shareholders as well. As an observer on this, we also have BDC Capital. Maybe in terms of the cost structure or, sorry, the ownership structure, over 65% of BuildDirect is owned by those three solid inside investors, Lyra, Pelecanus, and BDC Capital. We've also added some more board experience with Henry and Peg that have an ability to understand the M&A story and help us expand that part of the business going forward. Moving forward, just looking at the comparables, we've got several comparables that we looked at through the RTO process. We feel like when we look at BuildDirect, there's an opportunity for us where we feel like we're stacking up below the expectations from the other comparables from a revenue and EBITDA perspective. I think last, just wanted to look at the cap structure. Outline what our outstanding shares are, what our enterprise value is, and outline what that multiple would be versus our revenue expectations and EBITDA expectations. Again, I think there's a lot of value with where we're where our share price is today versus what our expectations are for revenue and EBITDA going forward. With that, I think I'll pass it back over to Prit to open up for questions. Okay. Thanks, guys. As mentioned at the top of the call, if you do have any questions, you can submit them to the Q&A function at the bottom of your screen, or if you're calling in, you can email us at ir@builddirect.com. Just going through some of the questions here. First question, can you elaborate a little bit more on your revenue sources? Oh, you're on mute, Shawn. Our revenue sources today are 20% coming from, you know, from homeowners who show up on our website, go through our sample, you know, funnel process and find a floor and usually work with a pro to install. The bulk, 80% are coming from, you know, large projects, things like, you know, apartment buildings being built or condos being converted from that. You know, some new construction, but we're not overly exposed to new construction, along with a substantial amount of to the trade. When you think about it's a floor covering installer who is, you know, actively, you know, selling their own projects using a variety of lead gen sources and referrals who actually use our e-commerce platform or our brick-and-mortar location as their back end, back room to buy products at wholesale and then to install them. There's a tremendous difference between what at wholesale means compared to at retail. That's where our revenues are coming from today, those large projects, but also a tremendous amount of just day in and day out projects where the trade is selling jobs and using us as their supply partner for their flooring business. Okay, great. In an inflationary environment and recent recession concerns, what impact are you seeing on projects? This one's interesting. A couple thoughts. You know, the first thing I would say is from a pricing perspective, we really haven't seen an inability to pass inflation along. You know, for the most part, projects are... I mean, it's floor covering, right? So it's a construction material, but it's a decorative material, so it's more aspirational kind of a nature. You know, we find that price sensitivity is really not, you know, really not there. Now, is there some kind of range or band? You know, definitely. We haven't really seen a slowdown. I don't wanna say yet, because we don't really forecast a slowdown with, you know, with ourselves. We're relatively, you know, a good-sized business, but in a pretty big ocean of opportunity. We have ability to grow. We find that consumers are still working through projects, still renovating. We, you know, based, you know, on industry experience and just, you know, past ups and downs, you know that when things get a bit tougher, the projects really shift. You could find new construction might soften up or renovations of existing homes could, you know, often do go up or kind of a flip to commercial. For the most part, the biggest challenge we're finding on the inflation side is just making sure we, you know, take things up as we need. On the, on the opposite side, as, you know, supply becomes a bit heavy, making sure that we are able to adjust costing and pricing back back down to follow. That's kind of what we're seeing today. Okay, great. In terms of differentiation, what do you think does differentiate your company's business model compared to your competitors? This one's actually pretty clear. We're focused on building a platform for pros to build their business, so product services, locations, things like that are rifle-focused. When you walk into one of our brick-and-mortar showrooms, for example, the sales team who's there is not a sales team that's, you know, highly trained on, you know, selling a homeowner a project or, you know, trying to help that customer pick out just the perfect color or, you know, that long tail. Although we provide those, you know, can provide those services, it's a team that's there that knows how to help pros develop their business. Things like how to scope out projects, how to bid projects, potentially, working with them on solving issues on installation, things like that. We're very much an expert in the space, and we're rifle focused on that component. Whether you're calling one of our e-commerce, you know, sales team members or you're in one of our brick-and-mortar locations, that team is very much focused on the trade and what the trade needs to be successful and the products and services that we focus on. I mean, we get excited when there's new products that are easier to install or have lower claim warranty issues, things like that, you know, really because that's what's best for the pro, that's what's best for the trade. That's our focus versus from a competitive perspective, although the word pro gets used a lot, you know, for the most part, the industry is focused on the end consumer versus the trade. I think maybe just to add to that... Mm-hmm. Some of those assets from previously BuildDirect 1.0, the direct manufacturer helps support the story. I think a lot of our competitors are using manufacturer or going through a distributor. Our ability to go directly with the manufacturer gives us a pricing advantage for the products we're bringing in. Also the supply chain network and logistics systems we have built out to service all 50 or virtually all the U.S. states is something that our competitors haven't figured out with the heavyweight product that we're delivering. Those are some of the other pieces that are helping start. Okay, great. Can you elaborate just on speaking on the pro strategy here, can you elaborate on what the gross margins look like for services provided in pro customers? I know you touched on them at the start of the call. Yeah. When you on the product side, you know, gross margins in the mid-30s%-40% will be, you know, will be the norm. On the service side, you know, that one, a lot of the services, you know, are in the works. What I would say kinda early on is it, you know, definitely will follow kind of SaaS norms. We should find service margins in the, you know, 70%+ range, 'cause for the most part, it's not the... For the most part, it's not the like the novelty of the service, it's just the utility of it. When you think about things like providing a white label e-commerce website, the cost of being able to execute that strategy is relatively low, but the value, both to the pro and also to the pro's customers is very high. For us, we believe taking key services and then running them through our, you know, through our channel for our customers in a way that's intuitive and can help them grow their business could also be extremely profitable for us, but also candidly very profitable for them. The inability to accept a credit card as a pro customer, which is a real problem that they face every day, causes them, for example, to have to discount their projects heavily or just lose on the opportunity altogether, which is even more expensive. In the space that's underserved from a service perspective, we believe profitability on services is gonna be very high, based on our initial studies. Okay, great. Are there other ways BuildDirect can monetize the pro customers besides product sales and some of the aforementioned services? Yeah. From a service perspective, you know, we believe product pull-through will come along with that as well. When you think about kind of the monetization of it, you have the initial products being sold through, you have services that will also then pull products through, you know, even more. Also, potentially some waste stream items like being able to sell back leads to our pro customers. It's interesting, a lot of our pro customers today buy leads from places like Angi or HomeAdvisor, Porch, so on and so forth. You know, they're buying the leads, and then from there, buying products from us to service the projects. Even with our current model, we're a lead generation machine. Today we don't really take advantage of that. There's, you know, other ways like that that we're going to be exploring. For the most part, we're taking a very kind of open-minded view of what we have, what the opportunities are, and then getting a ton of direct feedback from our customers on and exploring what the value could be. That's kind of where I see it kind of initially, but we'll be eyes wide open for, you know, for additional ideas. Okay, great. Are there any types of pro customers that were not covered in the presentation that you think could be a good fit for BuildDirect's target market? Yeah. The biggest segment that we, you know, Yeah, but potentially could be a fit. You know, we're finding that there are a lot of small kind of independent retailers throughout the country who are under-serviced by major manufacturers. Then you can insert, you know, kind of a variety of, variety of reasons there. For the most part, it's that, you know, it's that pro that maybe took that next step, got an office building, has a warehouse, now has a showroom, but, you know, kind of too small to hit the radar for a major manufacturer. We actually find an interesting number of those actually come to us and buy through us. We don't have a really a direct play on that one quite yet, but it's a pretty sizable opportunity as well, potentially. Okay. No, great. Thank you. Just again, talking more on the pro segment here and the pricing. How are you competing on pricing versus, for example, a Home Depot or a Wayfair? Yeah. When it comes to, when it comes to flooring, you know, or really any category that's more, you know, like more aspirational, more decorative, you know, the first thing I would say is, you know, visuals and quality can be assessed in a variety of ways. If you were to just take like an apple to apple and compare, you know, we find very often we're pretty cost, you know, cost competitive. You know, our pros report back that they're, you know, 10%-15% lower than what they can find elsewhere. I would say for the most part, it's a bit tricky when you're trying to compare apples to apples because you can have different ways and strategies of manufacturing products. I'm gonna answer that question kind of a different way. Our product offering is very much geared towards the pro customer. The pro customer that has to warranty the project after it's been installed. We err on the side of high quality at a very aggressive cost. Our products are as easily installed in a homeowner's house as they are in a large commercial application. You know, for us, it's really a focus on quality and relative value versus like a race to the bottom on trying to figure out, you know, cheaper ways to drive down costs while sacrificing quality. Yeah, having that pro focus on the products we source is a really important part. Okay, great. Is your business directly related to new housing starts/new construction or is that, I guess, tied to that to any extent? Yeah. Yeah. You know, for the most part, you know, we, you know, one of our divisions, does have, a chunk of their business that, that's, you know, for new construction in, actually in Michigan. For, for the most part, we wouldn't have a lot of exposure to that, you know, to that segment. You think about, you know, housing starts slowing down. You know, for us, we just pivot into other specs, you know, so renovations, commercial projects, things like that. For the most part, our business is, segment agnostic. You know, we're about the pro, but the subsegments that kinda go in between, we can fulfill and we do fulfill orders for renovation, new builds, you know, design build, so on and so forth, as easy as anything else. We've been very cautious in past years, and we'll be in the future as well, to not tie ourselves down to a specific subsegment, which has been a bit common in the industry kind of in the past, which is a nice capability to have, especially going into, you know, potentially some uncertain times. Okay, great. Just kind of a different topic here, moving into more of the M&A program, because you mentioned, there is an acquisition footprint here. Which state does BuildDirect plan to expand its physical footprint? Yeah. For the most part, we're interested in the Midwest and also the Western states. You know, we're looking and focusing more on higher growth areas. It's obviously great having a tailwind to kind of come along with it. Also, we've been very successful, for example, with our Michigan acquisitions, you know, not having a massive tailwind of growth in that state because from an opportunity perspective, there's a ton of opportunity in the just in the industry based on the fragmentation that's out there. For us, for the most part, you know, the kind of, you know, the Midwest moving west and also into Canada is interesting. When you get too close in the Southeast, and along the eastern side, you know, although there's, there are opportunities for sure, you're also getting kind of closer and closer to where a lot of manufacturing for the industry kind of happens, and you lose some of the advantage of having, you know, local inventory, and the ability to ship because you're so kind of close to the source. That's where our focus is. Yeah. You just touched on actually on a question about Canada. You're largely focused on the U.S. right now. Is there a, I guess the timeline to getting into Canada? What's the strategy there? Yeah. Interestingly, our pro sales manager, you know, last year started, you know, really reaching out and developing relationships into the Vancouver market, and we've have a pretty decent foothold there. Our intent is to expand into Canada. As far as how that looks like, in terms of acquisitions or more organically, we're, you know, we're still kind of working through that. There definitely is a big opportunity in Canada, and we intend on including that as well in our prospects. Yeah. Maybe just to add, when I mentioned the assets coming out of BuildDirect 1.0, one of the items I didn't mention was tax losses. When we're thinking about acquisitions going forward into Canada, one of the big benefits that we have is we have accumulated significant losses in the business that can be used for any profit generated in Canada. I think there's from a tax alpha perspective, there's a lot of opportunity for us if and when we expand in Canada. Okay. Just touching again on that, in terms of geography, what is your current revenue breakdown by geography and future breakdown? You can answer that the best to your ability. Yeah, Matt. Yeah. I think majority of the revenue at this point is in the U.S. I think last year we're looking at about 99%, 98%. The Canadian revenue stream is relatively minor. As Shawn mentioned, as we continue to look at opportunities in Canada, I think we will look at opportunities to expand that revenue in Canada going forward. Okay. For our audience, if you have any other questions, you can submit them to the Q&A function at the bottom of your screen. Alternatively, as mentioned, you can email us at ir@builddirect.com. Wait for any other questions. Why are you listed on the TSX Venture when the majority of revenues are in the US, and any uplifting priorities? I assume that means any uplifting potential. I think we've looked at the OTC/DTC listing to try to get ourselves more exposure in the U.S. It's on our radar to do that. I think with new leadership in place, that's on the roadmap for 2023 to investigate that option for us. In terms of going anything further, like, one of the bigger boards in the U.S., again, we wanna make sure that we've got the leadership solidified in place. I think the initial start would be that OTC DTC, which is kind of a cost-effective way to get ourselves exposure down in the U.S. and get trading volumes up down there, without having to go through all the regulatory compliance that trying to list on Nasdaq or anything like along those lines. Okay. Last question for Matt and Shawn. What are some catalyst investors can expect in the next 6-12 months that really excites you guys? I'd say the first one, when you look at the ability for us to leverage our, like, our capabilities such as procurement across the businesses, you know, those synergies are real. They're meaningful and they really haven't been executed yet. You look at, for example, really leveraging our direct sourcing model and what that can actually do for the initial acquisitions, there's a tremendous amount of opportunity there that we're gonna be able to, you know, really to exploit. There's that. The second big one is I go back to, when it comes to really product market fit and, you know, just the amount of pros that buy from us every day on large projects that are extremely attractive, where our model just really suits the, you know, the execution for that with the direct ship component for it. You know, really refocusing the, you know, marketing team's efforts on developing a pipeline there for, you know, that segment is massive. I mean, effectively, 80% of revenues are coming from that segment. Yeah, I don't mean to be kinda cute when I say this, but it's almost by accident, when you think about, you know, how our traditional marketing strategies work kind of in the past, more homeowner-focused. Just intuitively, that's, you know, to me like taking a hose and just, you know, unkinking it. So I'm pretty, kind of pretty excited about. You know, the, the last piece I would say when you're thinking about any kind of roll-up operation where you're or strategy rather, where you're focused on an industry, a customer, and then from there, you know, really driving, you know, the business, it's all about really tight execution. We have a pretty strong commitment on that side and great plans we started working through. We're really gonna be tightening things up and leveraging those capabilities. Having that alignment and that focus to me is absolutely massive, even on the e-commerce side, on what that business actually can do when we do those things successfully gets me pretty excited. Matt, any thoughts there on your end? I think what I would say, maybe I'd reference new leadership coming in as being a real catalyst to growth. I think if I look at what the business is today, we've got reasonable size revenue at $90 million. We've got ourselves more stable in terms of cash burn and profitability. We're sitting here being masters of our destiny to an extent. Now I think having new leadership coming in with perspective on growth strategies, with Shawn coming in kind of exposing new opportunities with the model that we have in place, I think is what I'm really excited about. I'll put that as as my catalyst for the next 6-12 months. One last question. Thank you for that. What is the management insider ownership breakdown? yeah. I guess mentioned, over 65% owned by insiders, Lyra, Pelecanus and Deedee. The remaining is outside. Great. All right. I think that's the end of the questions here. For all of our attendees, thank you for watching the presentation. This has been recorded, so we will be sending out a recorded replay to everyone attending. You can feel free to email us at ir@BuildDirect.com if you have any follow-up questions. Matt, Shawn, thanks for taking the time to walk through the BuildDirect story, and we will see you next time. Thanks a lot, guys. Take care.