Good morning, and welcome to the mCloud Technologies second quarter 2021 earnings conference call. At this time, I will turn the call over to Wayne Andrews, mCloud's Head of Investor Relations. Thank you, operator. Today, we will discuss the unaudited results for the three and six months ended June 30, 2021. Presenting for mCloud is Russ McMeekin, our Chief Executive Officer, and Chantal Schutz, our Chief Financial Officer. Before we proceed further, please note that remarks made on this conference call may contain forward-looking statements about mCloud Technologies' current and future plans, expectations, intentions, results, level of activity, performance goals or achievements, or any other future events or developments. Forward-looking statements are based on information currently available to management and on estimates and assumptions based on factors that management believes are appropriate and reasonable in the circumstances. However, there can be no assurances that such estimates and assumptions will prove to be correct. Many factors could cause actual results, levels of activity, performance, achievements, future events, or developments to differ materially from those expressed or implied by the forward-looking statements. As a result, mCloud Technologies cannot guarantee that any forward-looking statements will materialize, and we are cautioned not to place undue reliance on any forward-looking statements. Except as required by law, mCloud Technologies has no obligation to update or revise for any forward-looking statements as a result of new information, future events, or otherwise. For additional information on these assumptions and risks, please consult the cautionary statement regarding forward-looking information contained in the company's most recent MD&A available on sedar.com. I will now hand the call over to Russ McMeekin, our CEO. Please go ahead, Russ. Thank you, Wayne, good morning, everyone. Let's move to the first content slide, please. Highlights for the first half. Despite pandemic restrictions, AssetCare revenues were up 102%, so we're CAD 14.4 million in the first half, compared to CAD 7.1 million in the first half last year. The recurring revenue or AssetCare over time was CAD 12.6 million revenue versus CAD 3.7 million in the same period last year, so robustly up. Overall revenues were CAD 15.6 million compared to CAD 11.6 million, so up 34%. That's with a major decline in technical services. Those are project activities, primarily in the province of Alberta. Alberta and parts of the United States in May and June were heavily restricted. Alberta was certainly very restricted in May and June. Recently, I've been to Saudi Arabia. I'll discuss this in some future slides, but we're very well-positioned there in the Middle East in the second half. We are beginning to see Asia Pacific starting to pick up, and that's the whole region. We're very pleased with that. This morning, we announced that we filed our 40-F, which is a major milestone towards the NASDAQ listing. Move to the next slide. We continued to make progress, albeit slow this quarter, towards connected assets. We ended at mid-year with 62,508. Our near-term goal before year-end, with a very strong backlog to achieve it, is 70,000 connected assets. Then we move on to the next major milestone, and that is 100,000 connected assets. Moving to the next content slide. AssetCare over time revenues on a quarterly basis continues to grow. We look back to Q1 2020, you see a nice progression. Year-on-year, we're up 140%. At this point, I'm going to turn the call over to Chantal. Please move to the next slide. Thank you, Russ. Good morning, everyone. Total revenues for the first half of 2021 were CAD 15.6 million, and this is a 34% increase compared to CAD 11.6 million for the same period a year ago. Can we move to the next slide, please? Revenue in the second quarter was CAD 7.2 million versus CAD 5 million in Q2 2020. This represents an increase of 44% year-on-year, despite the fact that asset initializations were delayed due to pandemic restrictions, primarily in Alberta. Q2 gross margins in 2021 were 64%, compared with 62% for Q2 2020. Gross margins increased, resulting from 90% of our revenues coming from AssetCare over time. If we can go to the next slide, please. Pandemic restrictions continue to hamper our ability to connect assets, such that our AssetCare over time recurring revenue has not exceeded our direct expenses at this juncture, as anticipated. We are working diligently to achieve our near-term goal of 70,000 connected assets, the inflection point where recurring revenues will exceed direct expenses, and we're expected to reach our objective in the second half of this year. Next slide, please. In July and August, we began to see collections improve. In the same period, we saw extensive increase in detailed planning for new AssetCare initializations, which we believe will commence to make traction post-Labor Day. Sorry, just going backwards here for a minute. I apologize. Customer collections were slower than normal in Q2. Growth in new connections impeded in May and June, expected to make a return in the second half of 2021 and 2022. Our ATB facility currently is only 50% utilized, with facility expected to be fully available in the second half of 2021. As Russ previously mentioned, our Asia-Pacific saw growth in business activity in the first half of 2021, and both Asia-Pacific and the Middle East expected to make meaningful contributions in the second half of 2021. Next slide, please. Some of our major expenses for this period. In Q2, as at April 23rd, we had cash of CAD 14.4 million. As at June 30th, this was CAD 6.5 million. Cash used in the period was approximately CAD 7.8 million, and about 70% of that was from extraordinary non-recurring items, such as professional service fees related to financings, audit, and legal. That was CAD 2.1 million. Loan repayments of CAD 2.2 million. Third-party IP licensing and R&D of about CAD 1.1 million. As previously mentioned, in the second half of this year, we expect to have the full availability of the ATB credit facilities, that's CAD 2.5 million, and a pickup in customer collections. Noting the change in our cash position since our April update, approximately 70% was not related to operations. I also direct you to page 33 in the MD&A, where we present our pro forma balance sheet as at June 30th, 2021. This was done to illustrate the impact of the conversion of the 2021 debenture liability, which has been approved for conversion to equity effective post-financial state and MD&A approval on August 13th, 2021. I'd also like to point you to the press we put out this morning, as Russ mentioned, communicating that we have filed our 40-F. This represents a major step forward in our efforts to list on the NASDAQ. I'll send things back to you now, Russ. Thank you, Chantal, and I'm going to take the call now to a forward-looking view. Slide with the CAD 80 million TCV, please. Looking at the segments for the CAD 80 million of TCV, that is the goal we have set for ourselves cumulatively by year-end 2021. First major segment is HVAC, with a pretty powerful pull on the indoor air quality side of things, and I'll discuss that in more detail in a future slide, as well as AssetCare in oil and gas and industrial around ESG. This is what will make up, from a segment point of view, the bulk of our TCV trajectory for the second half of 2021. Next content slide. I was asked on previous calls to break things up from a TCV perspective in two ways, one from a segment point of view and the other from a regional point of view. If you look at this CAD 80 million of TCV, if you break it up, as I mentioned, industrial or oil and gas primarily is about half of the TCV segment in that CAD 80 million. Most likely in 2022, the pie chart will look very similar. Buildings, approximately 34%, and then 20% of it is a combination of wind and AssetCare Mobile. I've combined those here for illustration purposes. Most of the connected mobile assets are in the industrial side, however. By region, North America makes up the largest component of our TCV. Middle East, I will discuss in the next slide, is picking up to be quite a sizable component of the overall mix. U.K. and E.U., which is primarily wind for now, is about 15%. Asia-Pacific, as Chantal and I mentioned, is beginning to pick up quite nicely. Moving to the next slide. I was recently in the Kingdom of Saudi Arabia for over a week. As you saw, we announced a very strategic partnership with URBSOFT. To do business in the kingdom, you need a licensed agent within the kingdom. This agent and our partner there is very well connected with Saudi Aramco, which is the largest company on Earth. We had a number of brilliant meetings with them. Aramco, or Saudi Arabia is known for Aramco, but as you can see on this slide, there are numerous other major operators that own significant footprint of buildings, large petrochemical and refining companies. The focus in Saudi Arabia obviously is Aramco, but it is far beyond simply Aramco. We have a president there now in the Kingdom of Saudi Arabia. You'll see a lot more discussion in the second half of 2021 around Middle East, but very specifically Saudi Arabia. We expect this to be a significant component going into 2022. Moving to the next slide. For those who are watching the presentation via a screen, you can take your smartphone and point your camera towards this QR code. In the indoor air quality space, we are not only making them indoor air quality compliant, as you can see in the bottom right-hand side, as you've seen before, where indoor air quality exceeds the levels expected by a number of regulators or a number of health and safety standards. By clicking on this QR code, you can see the actual health of the building you're walking into. If you're walking into an office building and you're an employee and you want to see, and we have customers, including our own offices, that have this, you will see the state of the indoor air quality before you enter. Similarly, you can apply this to schools. You can apply this to retail locations as well as restaurants. We believe our QR code certainly was very well received in the Kingdom, very well received here in BC. We expect it to be very well received in Ontario, where this QR code is not just some kind of insignia of what could be, but an actual data and facts of the state of the indoor air quality of your building. I hope those of you who were able to click on this QR code. Next slide. ESG, fugitive gas, and the tracking and reporting around ESG is a big topic. It's one that our customers. We have an upcoming mCloud Connect. We expect to have about 500 people around the world. ESG is one of the top hot topics. You'll see the speakers from Microsoft's chief environmental officer. You'll see a number of people. We have numerous customers of major companies on panels that will be presenting at the AssetCare Connect. The predominance of the discussion will be either ESG and ESG reporting or indoor air quality. You'll see a lot of discussion around these topics. You'll see real demos, see real technology. Things in the second half are really well poised to move. Next slide. In summary, AssetCare continues to grow nicely, up 102%. Our backlog continues to grow. We expect after mCloud Connect, which is coincidental after Labor Day, where a lot of customers have started to put schedules in place to do things post-Labor Day. We expect things to begin to lift quite nicely. We also expect the challenges in Alberta to begin to lift, and therefore back to work there and doing a number of things. We forecast in the second half that a number of locations in the United States will also be in good shape. Southeast Asia, Japan, a number of places where we have active contracts going on, we expect them to pick up quite nicely in the second half. As I mentioned before, specifically in Saudi Arabia, we expect this to be a material contributor in the second half of 2021. Next slide and final slide. In summary and final summary, exceeding 70,000 in the near term continues to be our goal, and we will be achieving that before year-end. 100,000 connected assets will be the next milestone. If you look at our recurring revenue, our AssetCare over time run rate, at this point in 2020, the run rate was approximately CAD 8 million on a run rate basis. If you look at today, 2021, our run rate of the same category of revenue is CAD 25.2. A 215% increase in a very strategic and important segment. Obviously, reaching or exceeding the 70,000 connected assets, and as Chantal mentioned, the recurring revenue and the overall revenues exceed our direct operating expenses and therefore puts us in a positive operating EBITDA position is our focus. I will now turn the call back to the operator and open up for questions. Thank you. Thank you. Ladies and gentlemen, we will now begin the question- and- answer session for analysts only. Should you have any question, please press star followed by one on your touchtone phone. Should you wish to decline from the polling process, please press star followed by two. If you're using a speaker phone please lift your handset before pressing any keys. One moment for your first question. Your first question comes from Brian Kinstlinger with Alliance Global. Please go ahead. Hey, guys. Sorry, I didn't have the privilege of watching the slide deck, so I apologize for some of the questions, and I guess in the future, I'd suggest making it available separate from the webcast because the analysts are listening live. Can you give us the total number of connected assets today? I think I heard you say 80 million in backlog. First, how many are in Alberta? Recently, we saw Alberta get back to additional restrictions after easing restrictions. Maybe talk about the environment there and what the backlog is specifically in Alberta. Yeah. When you do get a chance to get the slides, and I'll actually send it to you directly, the slide. If you look in page 12. Anyway. Alberta, within the 40% of North America, is about half of the North America backlog. 40% of CAD 80 million, which is about half of that we have already booked. The other half is in the second half, of which of that half, about a half is Alberta. Yes, we did see on Friday that the Premier extended the lockdown. We expect, however, some of our customers, we know some of our customers on the industrial side are getting back that this extended restriction will not apply to them. We're hopeful that that won't impact that, and therefore, the industrial side of Alberta will be fine. Half of the backlog is industrial and about half of the backlog is North America, of which half of the half is Alberta, Brian. Got it. To be clear, to date, actually in the third quarter, you haven't connected many new assets in Alberta. Is that right? Almost zero in Alberta. May and June was completely locked down. Yep, that's correct. Yeah. What is your total connected assets today? Yes. I know you gave a quarter end. Yeah, 62,508. Oh, that was a today, not a quarter end. No, quarter end. That's at the end of June 30th. Yeah. Right. I'm wondering, mid-August, where are you? Can you provide that? No, it's not a published number. Actually, I don't even have it close to me, but Alberta would continue to be near zero. Where we've picked up is some in the U.S. for sure, in New York, none in California yet, some in Asia, and none yet in the Middle East, but soon in the Middle East. We're really relying on the back half of August, but more importantly, September. Got it. In terms of Asia Pacific and Middle East, again, sorry, but can you provide the percentage of backlog that you have there? Are you already delivering on getting those assets live, or does something need to happen between now and some point in time to start picking that up? 20% is Asia Pacific, to answer your question. The offshore platforms are proceeding without any challenge because we're doing it remotely regardless, so pandemic restriction doesn't really apply. A portion of that backlog is connected worker, Brian. That is less of a problem. 20% of it is Asia Pacific, and we're less impeded certainly than we are in Alberta or in North America with the customers we have in Asia Pacific. Middle East? Going forward. We're just signing TCVs now. The reason we're not connected is not due to any impediment, it's just you got to sign the contracts before you start. I would expect something by September, and definitely a nice activity in the fourth quarter. That's not a pandemic issue because their policies are pretty clear. If you have a vaccine, you can do pretty much anything. You can't get into the country without a vaccine, so it makes it pretty simple. Yeah. Your workers, are they coming from North America to the Middle East and to Asia Pacific to do the installations? Or are they local? Local, very local. Yeah. Okay. Last quarter, you talked about three new partnerships, Con Edison, Brayden Automation, BC Hydro. Can you talk about are you today connecting assets, or are today adding and signing assets to backlog? Con Edison, definitely connecting. I think you'll see some of that discussion at mCloud Connect. BC Hydro is starting to connect, likely some discussion at mCloud Connect. Definitely that's connection, not just signing TCV. Right. Lastly, I thought I heard that the debentures are going to convert. Will the short and long-term debentures go to zero? If not, what portion? What will be the total shares added to the second quarter share count? We added in Friday's conversion about 6.4 million shares. We were at 34.7 million, add 6.4 million, gives you the share count in treasury. The CAD 23.5 million debenture, which is due next year, this time next year, or actually May next year, are not yet converted. That we will likely deal with on an EBITDA basis in the second half or in 2022 as we pick up EBITDA. Our ATB facility and other facilities we have is designed to be sized up to take out that debenture next summer. Just to be clear, the CAD 23 million of the CAD 32 million is what you are saying will still be there? Yes, sir. Great. Okay. Thanks for all your answers and questions. Thank you. Thank you. Your next question comes from Martin Toner with ATB Capital Markets. Please go ahead, Martin. Hi, Martin. Hello, Martin. Can you guys hear me? Now we do. Oh, okay. Well, sorry about that, and thanks for taking the question. Just in the PR, it mentioned some collections issues. I see the long-term portion of trade receivables went up. Just wondering what was going on there. Can you explain that a little bit? Yeah, Chantal, go ahead. Sure. Thanks for the question, Martin. It's just simply a slowdown in collections. There's no collectibility issues. A lot of companies have just extended the period over which they are paying their bills. Primarily, that's happening in Alberta. Got you. Okay, thanks. Just to confirm, this 70,000 connected assets level, that's where you roughly break even on an EBITDA or a cash flow before interest kind of basis? Correct. Awesome. We've heard of the term, as you see in our investor presentation, we depict it very clearly. If you go to our website, you'll see the impact of 70,000, why that's meaningful. You'll see the revenues, the gross margins, and its resultant impact operating EBITDA. Perfect. The assets you connect at various ARPU, if I'm right. Just wondering, do you think that the ones you guys connect from here to 70 will be higher on that ARPU number about what you've been doing in the past or something else? No. They're mainly industrial, and they're a lot in Alberta, as Brian asked. Those by definition are higher blended value or higher value, period. They'll be skewed towards higher monthly recurring value per asset based on what's in that backlog. Got it. Great. It sounds like the 1,000 or so connected assets result was mostly a function of lockdowns and inability to reach customers. Was there any churn of note in the quarter? No, we didn't have any churn. No churn. The answer is zero. We remain very highly sticky, no churn, and on the other hand, we didn't add many new logos to our portfolio in the second quarter, but as I mentioned, with the Middle East and Southeast Asia and Asia Pacific, you're going to see a lot of customers with, in one case, Aramco, you're looking at millions of assets. We will have maybe several hundred millions. Our ability to penetrate a logo and then scale within the logo will be beyond massive, right? These are big logo, big asset customers that we'll be signing up in the second half. Got you. Interesting. That sounds great. I was just wondering, it sounds like the growth in the next couple quarters is going to come more from the industrial side, but just wondering about the state of the buildings part of the business. No, actually not really. On connected assets. Now, indoor air quality, so you asked me the value, the ARPU value of an industrial asset is CAD 250, right? An ARPU value of an asset in buildings is closer to Actually, we're getting away with, or I shouldn't say getting away with, we're getting higher pricing than CAD 50. We're seeing good pricing around indoor air quality. If you look at the distribution, buildings is still a pretty sizable component, and that's driven largely by indoor air quality. If you weren't at a screen where you're able to see the QR code, you'll see offices in Alberta, offices here in BC, offices in the U.S., soon to have school districts where, and I believe with this QR code becoming a reality of, the question will become if you're able to see the state of the quality of air in a building as a policymaker, why in the hell wouldn't we do it to all our buildings? I think that you will see. If you attend mCloud Connect, you'll see what I mean. Awesome. Yeah, no, I pulled up the QR code. That's really cool. It sounds like you guys are still very bullish on the buildings opportunity. Just wondering if you have any thoughts on the pace at which that business will reopen. I think it'll be big because they're big footprint customers, right? We're not dealing with any customer that only has five buildings that I know of, or two or three buildings. They're all in many buildings. It will be a nice pace, and because it's distributed, Brian asked the question, are you stuck with one central groups flying around the world? The answer is no, it's regional. In building it's even easier because it's regional and it's not that complex to add. The indoor air quality sensors are off-the-shelf capable things. The synthesis technology, most mechanical contractors can do pretty easily. You're talking about California, which is bigger than Canada, talking about New York State. These are big geographies, big pull, and we're not at the mercy of any kind of special knowledge to do it because this retrofitting of a building to be indoor air quality or demand response energy efficient, this IoT technology is pretty straightforward for these mechanical contractors to do, which we don't do. Is that right? Okay, super. That's very helpful and interesting. Thanks for taking my questions. Thank you very much. Thank you. yeah, we don't have any more questions, right? There are no further questions at this time, indeed. Mr. McMeekin, you may proceed. We thank everyone. We'll see you in the third quarter, and we look forward to a very positive and high-growth second half. Thank you. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating.