Good day, and thank you for standing by. Welcome to the First Quarter 2024 NanoXplore Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Sophie Rossignol. Please go ahead. [Foreign language] Merci, opérateur. Bonjour à tous et bienvenue à la conférence téléphonique du premier trimestre 2024 de NanoXplore. Good morning, everyone, and welcome to NanoXplore first quarter conference call. Today, I'm here with Soroush Nazarpour, our President and CEO, and Pedro Azevedo, our CFO. We will start with our prepared remarks and then a Q&A. Please note that our discussion will include estimates and other forward-looking information, which our actual result may differ from in the future. We invite you to review the cautionary language in yesterday's earnings release in our MD&A regarding the various factors, assumptions, and risks that could cause our actual results to differ. With that, let me turn it over to Soroush. Merci, Sophie. Hello, everyone, and thank you all for joining our call today. We will first start with the review of economy and the impact on our business. I will then expand on our capital allocation plan, and I will end my remarks with an update on VoltaXplore. After almost two years of volatility and interest rate increases by central banks, we are seeing a reduction in economic activities and in consumer spending. Even though this reduction in economic activity helps to reduce inflation, it will certainly hamper growth in the next few quarters. As it relates to our business, our first quarter is historically slower because of our customer plants being shut down during summer. Against that backdrop, I'm very pleased with the performance of NanoXplore team, as we have been able to significantly improve our gross margin to almost 20% compared to the last year's first quarter, which was around 12%. Our focus on higher margin products, such as graphene and graphene-enhanced products, together with operational improvement, continues to positively contribute to our financial performance. We also maintained our healthy balance sheet with almost CAD 40 million of liquidity. Now, let's talk about our capital allocation plans related to our five-year strategy. As we go through the next few quarters of economic uncertainties, our strategy is to maintain a healthy balance sheet while preparing for the next phase of growth that could potentially start by mid-2024. As disclosed previously in our five-year strategy plan, we're focused on three areas of growth: graphene-enhanced composite light weighting business, graphene and anode materials, 16,000 metric ton per year production plant, and VoltaXplore battery plant. In our light weighting business, our graphene solution is gaining momentum, and more customers are interested in our composite products. Graphene brings several benefits to composite products, such as improving the surface quality by reducing blisters and surface imperfections, and enhancing the rigidity of the composites, which enables light weighting. This technical improvement translates into higher gross margin for our products, well over the industry standard, and set NanoXplore apart from traditional composite part supplier. Furthermore, the industry is adopting these solutions. Last month, we announced new contracts representing CAD 24 million per year of business at maturity, and we're working on a couple of similar contracts. Our exposure to this market has been mostly in heavy commercial vehicles, and we are looking to expand to passenger vehicle space. Having said that, we are selective on the businesses that we quote on and are discussing with customers to contribute to the capital investment. Regarding our graphene and anode material 16,000-metric ton per year production facility, our commercial activities on the anode side are accelerating following the recent announcement of graphite export control from China. The anode market is heavily dominated by China, and North American supply is very limited. We are currently testing our anode materials and discussing commercial partnership with a few OEM and their battery production partners. Following the announcement, these discussions accelerated. As previously disclosed in our five-year strategy plan, this facility requires nearly CAD 120 million of investment, which is almost 70% of our total investment until 2027. Therefore, our final investment decision is conditional to offtake contracts from these OEM, as it enables us to finance this facility through dedicated credit facility, along with government subsidies and Investment Tax Credits. This 16,000 metric ton per year facility will produce around 8,000 metric ton per year of anode material and 8,000 metric ton per year of our pure graphene powder. Within the last few years, we have been actively working to enhance our graphene production knowledge and know-how, and as a result of this hard work and dedication, I'm very pleased to announce that we have been able to produce graphene through a dry production process. Dry production process compared to our water-based graphene production process has several benefits. First, it has a much higher output and production speed, meaning that CapEx per ton is significantly lower. Second, as there is no water or solvent used in the process, the footprint is significantly smaller. And third, which is extremely important, our cost of production is significantly lower, enabling us to match carbon black selling price. We anticipate producing 8,000 metric ton per year of dry processed graphene in this facility and will expand from there. This is a very important milestone for NanoXplore and graphene market as a whole, as we can now target almost all carbon black applications and provide an all-encompassing, cost-effective, and sustainable alternative to the carbon black customers. We will provide more details on our proprietary dry processing of graphene and our technology in a separate press release. When it comes to commercial activities related to our graphene production outside of transportation segments, our team continues to work hand-in-hand with all our existing and potential clients to establish the best strategy for incorporating graphene into their products. Testing and validation processes are continuing with several customers in our target markets. For instance, drilling fluid is continuing to show promise as graphene adds several benefits, such as improved lubricity. Our customers are doing field trials now, and we will report to market on the results. Related to the foam, we're actively working on several foam chemistries such as XPS, PIR, and PU, mainly to improve insulating properties and achieve better flame retardance. Graphene is a sustainable replacement for other conventional additives that have been utilized in this market and also offers a better performance. Even though commercial sales are still small, we're expecting to see steady sales growth in the next few quarters. Switching gears to VoltaXplore. Following successful commissioning of the retooling process to 21700 cells, we are now producing high-performance power and energy batteries. On one side of the spectrum, we have produced power cells with a large concentration of our silicon additives, or SiC, in the anode, and with over 1,000 cycles of stability. On the other side of the spectrum, we have produced energy cells with outstanding lifetime and stability for almost 50 years of daily use. Our power cells are highly fit for high power and demanding applications such as power tools, sports vehicles, and aeronautics, and our long cycle life energy cells are highly fit for grid storage and peak shaving applications. VoltaXplore is continuing to make strides in the battery world by positioning itself as a niche and high-performance battery producer in North America, and I have to congratulate VoltaXplore team for their achievements. Now, moving to VoltaXplore financing, we are progressing very well and are getting very close to the conclusion of CAD 500 million financing to build VoltaXplore's 2 GWh battery gigafactory. Our financing package has three components: government support, debt, and equity. We currently have visibility on government support and debt portion of the financing, which is around 75% of the total financing, and are working on the completion of the remaining equity portion. Related to the construction, we have selected our land and agreed with the construction company to construct our building. We anticipate beginning the construction in the second quarter of 2024 and receiving production equipment by fourth quarter of 2025. Commissioning and the start of production will be in 2026. With that, I will now give the floor to Pedro, who will discuss the financials and our outlook. Merci, Soroush. Bonjour à tous. Good morning, everyone. Today, I will begin with a review of our Q1 financial results, followed by an update on financing for our five-year strategic plan, and conclude with some commentary about our fiscal year 2024. Total revenues in Q1 grew 6% versus Q1 2023 to CAD 28.9 million. The increase in revenue was mainly due to a positive product mix, including graphene-enhanced products and positive foreign exchange impact resulting from a stronger U.S. dollar. Despite this increase, the growth was lower than we expected due to lower tooling revenues, which will fluctuate from time to time, as well as due to a reduction in customer orders during the summer as they reduced their production cadence. Although the revenue growth during the quarter was modest, gross margins, excluding depreciation and amortization, nearly doubled, expanding from CAD 3.1 million to CAD 5.7 million. Gross margin as a percentage of sales were 19.5%, an improvement of 800 basis points year-over-year, and was driven by improved productivity, resulting in part from manufacturing cost benefits of producing graphene-enhanced products, higher margin product mix, and better cost controls. This year-over-year margin improvement has been a trend over the last five quarters, and we are pleased that it is continuing. Our adjusted EBITDA was negative CAD 448,000 and was comprised of positive CAD 200,000 in the advanced materials, plastics, and composite product segment, a significant improvement versus negative CAD 2 million last year, and negative CAD 680,000 in the battery cells segment, which encompassed the VoltaXplore initiative. Since VoltaXplore was a shared cost with Martinrea last year and excluded from EBITDA, there is no direct-to-EBITDA comparable to our previous year's numbers. With regards to our balance sheet, we ended the quarter with CAD 29 million in cash and cash equivalents. This is, this was CAD 1 million lower than it should have been due to a technical delay in payments from one of our customers, which was resolved in October. Our cash, along with the CAD 10.5 million of unused space on our lines of credit, resulted in a total liquidity of CAD 39.5 million. The decrease in cash during the quarter was in part due to an investment of CAD 3 million in CapEx related to the SMC strategic initiative and other general maintenance. Moving now to the financing of our five-year strategic plan. As a reminder, this does not cover the battery gigafactory initiative, which is being done separately and through different financing. Since our update in mid-September, we have continued discussions with our current and potential lenders and now have received three separate credit facility offers. Each of the three offers provides NanoXplore with over CAD 40 million of credit, which will easily cover the full investment requirements for the SMC initiative and at interest rates comparable to what we currently pay on our variable rate debt. The terms of the offers also provide additional amounts to expand the credit facility further once offtake agreements for the anode materials are concluded and which would be used by the lenders to support the expansion. We expect to complete this process shortly. Turning now to our fiscal year 2024. As Soroush mentioned, we are now seeing the impacts of higher interest rates on the economy and causing our growth rate to soften. Although our customers indicate strong order books, we are cautious about the coming quarters and expect a more modest growth during our fiscal year 2024. Based on the visibility we have today, our guidance for the full year of 2024 is CAD 130 million. With that, I will pass it back to Sophie. Merci, Pedro. Operator, we can now open the lines for questions. Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again, and please stand by while we compile the Q&A roster. Our first question comes from Rupert Merer of National Bank. Hi, good morning, gentlemen. Good morning. Good morning, Rupert. Soroush, you started by talking about the support you're getting for gross margins with the product mix that you have and some of your higher-end products. What's the range of margins you see in your product mix? What do you think is the potential for margins in the business in the long run? I would say closer to 20% to high 20%, like 25% range. So, that's when you have a mix of graphene and composite products. On the pure graphene, the margin goes north of 40%. So, so it depends on the product mix, but it's close to 25%, I would say. Okay, so still more upside from where we are today. Yeah. And, and if I can dive into the CAD 24 million annual sales contract that you announced fairly recently, can you talk about the cadence of that contract, when it is expected to really start to kick in, and, and the timing of the tooling revenue, CAD 10 million? When would you anticipate receiving that? Yeah, Pedro? If I may, Rupert. Basically, the projects like this always start with tooling revenues. So you'll start seeing revenues from tooling in the May, June, July timeframe, so Q4, Q1 of next year. And then as the tooling is completed and production starts, you'll start seeing into 2025 into 2026 the impact of these new contracts, with the full annual impact probably only in the 2026 fiscal year. Great. And with programs like that, I imagine you're adding new programs. You have some programs rolling off as well. How much of your revenue is typically tied to programs like this, which may have set durations? It's hard to quantify it that way, but I would say that the majority of our sales right now, probably around 60% or 70%, are derived from long-term programs like what we just announced. However, as graphene continues to grow and graphene-enhanced products continue to grow into other sectors, you will see that proportion to drop and the graphene amount to grow. So the proportion that's tied to contracts and programs will drop as we grow other parts of the business. All right. Very good. I'll leave it there, and I'll get back in the queue. Thank you. Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. And one moment for our next question. And And our next question comes from Ahmad Shaath of Beacon Securities. Hi, Soroush and team. Just a quick one for me. You, you mentioned on the 16,000-ton anode graphene facility, there is potential for CapEx savings, if I understood correctly, from the dry process. Are you able to give us any color on that, or is it not going to be that material? Well, well, the CapEx saving is already included in the, in the CAD 120 million that we mentioned on the five-year plan. So, the CapEx saving that we have discussed and compared is versus our water-based production process that we have today in our headquarters on the graphene production. So, in terms of quantum, I will wait to give a number out as we're finishing our engineering study, but it's quite significant in terms of the drop of CapEx. So, you know, we're seeing more than 50% drop in the CapEx reduction. Got it. That's very helpful, Soroush. Much appreciated. I'll jump back in the queue. Thank you. One moment for our next question. We have a follow-up question from Rupert Merer of National Bank. Hi, good morning. Wondering if I could talk to you a little about the battery materials market. You mentioned you're in discussions with some battery producers who are looking for alternative sources of anode material. Are you providing representative materials to potential customers today for testing? And maybe give us some color on what type of material is most of interest for them. I imagine they're probably not looking for the high-performance materials, but maybe more of the sort of longer life materials. Anyway, any color you can give on your developments with potential customers? Yeah. So on the battery materials space, on the anode side, we have a product called CSPG, which is coated spherical purified graphite that is coming out of the 16,000-ton facility. That's one product. We also have a product to the graphene-enhanced anode material, which is... That's the second product. We also have conductive additives, graphene-based conductive additives, which is about 2% of both anode and cathodes used by a conductive carbon black, and that's what is also coming out of that plant. So, the testing that the OEMs are doing and their battery partners are doing are mostly on the traditional CSPG anode material and also the graphene-enhanced anode material, which is a very similar type structure to the typical CSPG. So they're testing both this product. The sales process is very different for the conductive grade. So we're just at this time, the focus is really on those active anode materials. And technically what we saw was, following the announcement of export control, a graphite export control out of China, and as China is technically supplying North of 90% of the anode material in the world, customers are looking to bring the supply of the anode close to them and have and supply it through North America, and that's a good position for us to be. At the same time, the natural graphite-based anode materials are always used in combination with the synthetic graphite-based anode material. So there is normally a ratio of 30% natural, 70% synthetic. So, our type products are a portion of the anode materials that consumers and their customers and their battery suppliers are actually purchasing today. So that's the part of the market that we are active and the customers are testing those type of products. You mentioned that you're in discussions with lenders and the capacity of the facilities could expand if you get some offtakes from materials. How soon do you think you could see offtakes? And will you be in a position to announce offtakes in the coming quarters? What's the outlook there? How quickly do you think your customers could be in a position to move forward and commit to some of this material? Well, the commitment we are looking is stronger than a simple supply contract, and that's why it's taking a little bit longer. We want to make sure that offtake contract enables us to raise the debts required for the facility through the credit facility. So we need a little bit stronger type commitment from the customers. That will make the process a little bit slower. Having said that, a lot of the products coming out of that plant can be more of a commodity, anode-based material, that's actually being sold today out there. Those type of product can be sold through distribution groups as well. But we need that large bankable offtake contract. So we can finance it through the credit facilities. Now, in terms of timing, I would say that the next couple of quarters, we should have it. We cannot even start the construction before 2024, as we want to use the investment tax credits of the Canadian government. So we're looking at some time next year to have that in hand before allocating capital. And, we will not start investing money in this before having that update with them. So I imagine the support of the ITC is going to be important for you and for your potential customers on the material. How much visibility do you have on the availability of the ITC? Are there any more hoops that you're going to need to jump through to access that support? Or do you have pretty good visibility on being able to get access from those funds? It's an investment tax credit, so we have very good visibility on that capital. As far as we know, it does not require any sort of prior approval of some sort. This is an investment tax credit, so I would say. Next year, and they have to start in 2024. Yeah, it's starting in 2024, so we have pretty good confidence that we will receive those Investment Tax Credits. So the rules seem fairly clear and, really no hurdles to accessing the support. At this point, no, there is no hurdle. Okay, excellent. Thanks again. Thank you. One moment for our next question. Our next question comes from Matthew Key of B. Riley Securities. Good morning, gentlemen, and thank you for taking my question. You mentioned that the dry processing method has the potential to significantly lower costs. I was wondering if you could maybe quantify that a little bit more, and how significant of a cost reduction are we talking about with this new method? Thanks. So, again, some of those key numbers will be released at the end of our engineering, but at this point, we are seeing sub CAD 2 per kilo production cost. And, and we still think that we can go further down in terms of production cost. So the target of, you know, selling close to carbon black pricing, like at CAD 3 per kilo, is very achievable. That's, that's great to hear. And just one more quick one for me. Kind of on the CAD 24 million in new business contracts, could you maybe provide some additional details on what end markets exactly contributed to that new business? Yeah. So, so it is with the two customers, one in a heavy commercial vehicle and the other is in construction equipment supplier. Both of them are in composite lightweighting product section. Got it. That's very helpful. That's it for me. So thank you, and best of luck. Thanks, Matthew. Thanks, Matthew. Thank you. One moment for our next question. We have a follow-up from Ahmed Shaath of Beacon Securities. Hey, so just a quick follow-up. Maybe I've discussed this before, but on the government side of the funding for VoltaXplore, what form of financing are we, should we expect there? So, that one is a bit harder to comment, as governments they have to release it themselves. But, technically, on similar cases, governments are looking at equity grants, and forgivable loans. That's, that's very helpful. Thanks, thanks for that, Soroush. Sure. Thank you. I'm showing no further questions at this time. I would now like to turn it back to Sophie Rossignol for closing remarks.