Thank you for standing by. This is the conference operator. Welcome to the mdf commerce first quarter fiscal 2023 investor conference call. Today's call will provide information and commentary on the company with a focus on the financial results released yesterday after the market closed. We will hear from Luc Filiatreault, President and Chief Executive Officer, and Deborah Dumoulin, Chief Financial Officer. If you have questions following the call, you can reach mdf commerce at the address at their website, www.mdfcommerce.com. First, here are a couple of housekeeping notices. All participants are in listen-only mode for the duration of the call. This call is being recorded, and we expect that the recording will be available on the mdf commerce website later today. The information in today's remarks, including any forward-looking statements, has been prepared as of June 30th, 2022, unless otherwise indicated. mdf commerce assumes no obligation to update or revise the forward-looking statements to reflect any new events or circumstances, except as may be required pursuant to securities law. We remind you that today's remarks will include forward-looking statements and non-IFRS measurements that are subject to important risks and uncertainties. For more information on these risks and uncertainties, please see the reader advisory at the bottom of the mdf commerce's news release, which is on their website and has been filed on www.sedarplus.ca. The company's actual performance could differ materially from these statements. I will now hand the call over to Mr. Filiatreault. Please go ahead, sir. Well, thank you, Shannon, and good morning, everyone. Thank you for joining us on our Q1 fiscal 2023 results call. We'll turn to the results we filed yesterday in a moment, but first I wanna take a bit of time to tell you about mdf commerce and the state of operations. mdf commerce is a developer and operator of digital commerce platforms that facilitate CAD billions a year of digital commerce transactions for well over 550,000 end user companies, mostly in North America. Our mission is to enable the flow of commerce. As we enter the third year of our five-year strategic plan, our key operational drivers are focus and simplification to ensure the strong execution of the strategic priorities for the coming year. Before I cover an update on the state of operations, I'd like to mention that Deborah will provide remarks on the state of the company's balance sheet. We've had questions recently on the company's capital structure, particularly on long-term debt. I want to confirm that we are in compliance with the financial covenants of our credit agreement at June 30th. Our capital management strategy includes performing financial stress tests to assess the corporation's ability to meet its financial obligations, including the covenants in the credit agreement. Now in terms of operations, our focus remains on our two core platforms, the eProcurement and the unified commerce, which includes e-commerce and supply chain solutions. Current market conditions are clearly favorable for our eProcurement technology, which targets government agencies across North America. Despite uncertain global macroeconomic conditions that are impacting many sectors of the economy, these government agencies show no signs of slowing down the process of digitizing their procurement functions. Our continued focus on revenue growth in this sector is core to our strategy. Our leadership position in North America eProcurement, combined with our innovative transactional model that we refer as TRX model, position us favorably to capitalize on this growing market, this growing segment of the market. Our top priority for eProcurement is to accelerate conversion of revenue opportunities in our pipeline. Interest in our technology is high. There were some operational barriers that have impacted conversions, which have been slower in Q1 than what we originally expected going into fiscal 2023. Specific actions have been taken to address these operational barriers, which are beginning to accelerate our conversion cycles. Conversion remains a top priority. Onboarding buying agencies onto our eProcurement platform drives increased spend on our platforms, which specifically for our TRX model, drives transaction-based revenues. Our full procure to pay ePRO solution is already implemented in several U.S. states. For unified commerce, and specifically e-commerce, the entire sector, including our platforms, is facing post-COVID headwinds. As a result, we've seen a reduction in volume-based revenues. Based on the current trends, we expect more limited volume-based growth in the coming quarters, especially in the eGrocery. In contrast, retail-based transactions, which have been less impacted. To counter this market shift, we are focusing our commercial efforts on our order management systems, the OMS, which helps retailers ensure an optimal consumer experience with a hybrid shopping environment. This product does not require a client to fully re-platform their e-commerce solution. It is out-of-the-box ready and can be easily layered onto existing tech stacks in a much shorter timeframe. It allows our clients to highly increase the inventory they have available online and allows them to increase their digital sales without much additional effort or cost. The e-commerce platform remains a strategic priority for mdf commerce. The market downturn in the e-commerce sector requires us to manage profitably and to realign the cost structure. One of the first steps taken was to prioritize filling positions that are revenue generating, that allow us to service our clients that generate revenue. With salaries that continue to be trending upwards, inflation in our key markets at a 40-year high, and a downturn in e-commerce, we are looking at ways to improve our overall operational efficiencies. We are currently reprioritizing many of our initiatives to adapt to the present market conditions by focusing on nearer term priorities that have a higher impact on margins. Our goal is to reduce operational costs and improve margins as we push towards achieving profitability. Overall, our growth for the first quarter of fiscal 2023 is lower than expected due to market slowdown in the e-commerce sector and the lengthier than anticipated time to convert eProcurement opportunities with major government clients. We quickly adapted to respond to these evolving challenges, have taken definitive and clear steps to address them, and therefore remain confident in our ability to execute on our strategy towards profitable growth. One element that I'd like to comment on is the fact that the corporation is pleased to announce the nomination of Brian Nelson to stand for election to our next to our board of directors at our upcoming annual general meeting, which is scheduled for September 20th, 2022. The addition of Brian will further strengthen and complement the current skills and capabilities of the board. Brian has been a partner at Long Path Partners, a privately owned investment firm which owns approximately 11.14% of the shares of the corporation, and that invests in the limited number of high quality businesses operating primarily in the enterprise software and business and information service markets since 2018. He currently serves as a co-portfolio manager of the Long Path Smaller Companies Fund and the Long Path Opportunities Fund. The corporation looks forward to welcoming Mr. Nelson upon his election. His experience and knowledge will be valuable contribution to the board of directors. With a long history in public sector software as well as e-procurement software, Long Path brings a wealth of experience and knowledge to the table. We look forward to their continued support and strategic input as we grow our activities in government procurement. Mr. Nelson will be joining both new members of the board, which were Pierre Chadi and Lester Fernandes, which were announced on our Q4 results just a few weeks ago. Now Deborah will provide information on our company's Q1 fiscal 2023 financial results. Deborah. Thanks, Luc, and good morning, everyone. I'll start with our balance sheet. Cash at June 30th was CAD 5.9 million, compared to CAD 6 million at March 31st, 2022. The company's capital management strategy includes the use of long-term debt. At June 30th, long-term debt under the credit agreement includes a term loan, which is a $16 million U.S. facility, or CAD 20.6 million, which was available as a one-time borrowing and was used to finance the Periscope acquisition in August 2021. The company also has a revolving facility with borrowings at June 30th of CAD 35.4 million. Therefore, long-term debt net of cash balance is CAD 49.5 million at June 30th, which compares to CAD 43.7 million at March 31st. The increase in total debt, net of cash, of CAD 5.8 million during the quarter, is due to several factors. Normal operating changes in non-cash working capital, which relates mainly to timing. Payment of the first tranche of the Periscope acquisition-related retention bonuses, which were made in April 2022. The annual increase in the company's employee salary group, which occurred in Q1, and which increased the overall payroll-related cash outflow. We also wanna note that from a short-term tax credit receivable perspective, and for those of you who are familiar, the e-business tax credit is available to qualifying business for development activities, and this is for many of our Quebec-based businesses. These credits have taken longer than usual to collect from the Quebec government. We understand that the government tax agency continues to experience some processing delays. However, we expect to collect CAD 5.7 million over the next few months. The revolving facility has a maximum borrowing of CAD 50 million and an accordion of CAD 20 million, which is subject to lender's approval. The borrowing base under the revolving facility is based on a 1x multiple of our monthly recurring revenue and on eligible accounts receivable as defined in the credit agreement. On June 30th, the actual borrowing base for the revolving facility is in excess of the maximum capacity of CAD 50 million. The credit agreement requires that the corporation maintain two financial covenants, the fixed charge coverage ratio, which must be not less than 1.2 to 1, and a debt to capitalization ratio, which must be less than 50%. At June 30th, the corporation was in compliance with both of these financial covenants. The fixed charge coverage ratio makes use of last 12 months EBITDA as defined in the credit agreement. The corporation prepares financial forecasts and stress test assumptions to evaluate the risk that significant differences could result in non-compliance with these covenants. Subsequent to quarter end, we initiated proactive discussions with the lender, and on August eleventh, the credit agreement was amended to provide for a reset of the fixed charge coverage ratio from the 1.2: 1 to 0.5: 1 for the next three quarters ending on September 30th, December 31st, and March 31st of 2023. Based on our financial forecast, the corporation has sufficient capital resources available to maintain its capacity to meet its working capital requirements, to finance its commitments for planned growth, to fund activities of its business plan, and to maintain an appropriate level of capital spending, as well as to comply with the financial covenants required under the credit agreement. Now let's move on to the financial highlights of the first quarter. Q1 revenue was CAD 32.2 million, an increase of CAD 9.6 million or 42.6% compared to CAD 22.6 million in Q1 of 2022. On a constant currency basis, total revenue increased by CAD 9.8 million or 43.6% compared to Q1 2022. Q1 recurring revenue represents CAD 26 million or 77.8% of total revenue. Recurring revenue grew by CAD 9.7 million compared to CAD 16.4 million or 72.5% of total revenue in Q1 of last year. Our total consolidated U.S. based revenue represents CAD 16.5 million, now 51% of the CAD 32.2 million of total revenue for Q1, compared to 43% of Q1 revenue in the previous year. Mainly from the acquisition of Periscope, which is a U.S. based subsidiary in e-procurement that had revenues for Q1 of CAD 8.1 million. Revenues for Q1 were impacted by a fair value adjustment of the Periscope deferred revenue, which occurred at the closing balance sheet as part of the acquisition accounting, and which resulted in a reduction of revenue for the quarter of CAD 1.2 million. While this was not applicable in Q1 2022 because it was pre-acquisition. The e-procurement platform generated CAD 17.9 million, an increase of CAD 9 million or 101.4% compared to CAD 8.9 million in Q1 of 2022. The corporation's US-based e-procurement revenue grew by 187.5% or CAD 8.6 million up to CAD 13.2 million in Q1 2023, compared to CAD 4.6 million in the same quarter of the previous year. Again, mainly related to the Periscope acquisition. Monthly recurring revenue for the e-procurement platform represented CAD 16.6 million or 86.8% of platform revenue for Q1, compared to CAD 8 million and 89.9% in Q1 of the previous year. Our other core platform, Unified Commerce, which includes both e-commerce and supply chain collaboration solutions, generated CAD 9.8 million for Q1 of this year, a slight decrease of CAD 0.1 million or 1.2% compared to CAD 9.9 million in Q1 of the previous year. Monthly recurring revenue for Unified Commerce platform represents CAD 5.8 million or 59.6% of platform revenue, compared to 57.1% in Q1 of 2022. The e-marketplace platform generated revenues of CAD 4.6 million for Q1 of the current year, an increase of CAD 0.8 million or 19.9% compared to CAD 3.8 million in Q1 of the previous year. Revenue growth in e-marketplaces was driven primarily by the BrokerForum, which is an electronics parts marketplace where volumes have continued to increase due to global supply chain shortages. Turning now to gross margin for Q1 of 2023, it was CAD 18.5 million or 57.4%, compared to CAD 13.2 million or 58.7% for Q1 of the previous year. The slight decrease in the gross margin percentage is mainly due to higher total salary expense, higher headcount, higher professional services to support customer implementation, mainly consultants on large deployments, and higher hosting and licensing costs directly related to the corporation's migration to a cloud strategy. For Q1 2023, operating expenses were CAD 25.5 million, an increase of 45.3% compared to CAD 17.5 million in Q1 of 2022. General administrative expenses were CAD 7.3 million in Q1 of 2023. Selling and marketing expenses were CAD 8.7 million, and technology expenses were CAD 9.5 million, compared to CAD 5 million for G&A, CAD 6.1 million for sales and marketing, and CAD 6.4 million for technology in the previous Q1. Higher total operating expenses in Q1 2023 are mainly due to the acquisition of Periscope. Q1 2023 amortization costs were significantly higher at CAD 4.5 million compared to CAD 2.3 million in Q1 of 2022, mainly due to the acquired intangible assets from the Periscope acquisition. Other increases are the professional services relating to support the corporation, implementation of its strategic activities, its transformation plan, and to support large deployments of client contracts. Operating expenses for Q1, prior year included a federal wage subsidy of CAD 0.8 million, with no subsidies claimed in Q1 of 2023. The corporation recorded an operating loss of CAD 7 million in Q1 of the current year, compared to 4.3 million loss in Q1 of 2022. The net loss was CAD 6.3 million or CAD 0.14 per share, basic and diluted in Q1 of the current year, compared to a loss of CAD 4.3 million or CAD 0.15 per share, basic and diluted in Q1 of 2022. The adjusted EBITDA loss was CAD 1.1 million for Q1 of 2023, compared to an adjusted EBITDA loss of CAD 1.5 million reported in Q1 of 2022. The company's annual salary increase took effect in Q1 of 2023 on a higher headcount than in prior year, mainly due to the Periscope acquisition. The CAD 1.2 million impact in Q1 that I mentioned earlier on the fair value adjustment of the Periscope deferred revenues that occurred at the opening balance sheet of that acquisition also had an unfavorable impact on revenues, but also gross margin, net loss, adjusted EBITDA loss, and loss per share during the quarter. With that, I'll turn it back over to you, Luc. Thanks, Deborah. Gee, that's a lot of numbers. Over the next few quarters, our strategic focus remains on accelerating organic growth. Although our operational focus is both on e-procurement and unified commerce platform, our near-term emphasis is on e-procurement, which has strong market tailwinds and an efficient and appealing business model. We believe that by concentrating our operational efforts on this market vertical, we can yield higher margin, high-quality revenue growth. The investments that we have made in our platforms over the past few quarters, which have greatly improved customer satisfaction, product performance, and our ability to scale the business, will be right-sized to the current market conditions and will be focused on elements that have higher impacts on margins. Management will continue to work diligently on operational efficiency with additional efforts to reduce costs and prioritize the critical aspects of our business that drive organic growth and contributes to our goal of returning to profitability. Though our unified commerce platform is impacted by current macroeconomic trends, we believe that our ability to capitalize on the continued acceleration of digitization of processes within the GovTech sector will allow us to navigate the current and challenging macroeconomic circumstances. Over time, we expect our e-procurement platform to play a larger role in our ability to scale, and we are structuring the operations accordingly. We continue to execute as planned on the integration of Periscope and on adopting and leveraging the unique transactional model for the entire e-procurement platform. Concurrently, we are accelerating and onboarding new U.S. states and public agencies. Consequently, we remain confident that we are on the track to realize stated synergies within the stated timelines. Despite macroeconomic uncertainties, we are confident that a digital transformation of our business processes will continue and that the corporation will be able to benefit from this trend through its main platforms. Our diversified and unique business solutions, combined with our industry expertise, position us well to capture new market shares while continuing to support our long-term customers in unprecedented times. I would like to remind that only approximately 20% of our business comes from large customer engagements that can be press released. The majority of our revenue, and that's about 80%, comes from more than 100,000 paying customers on our various networks such as S2G, MERX, BidNet, and the various SMBs that use k-ecommerce in our marketplaces. With that, we are happy to open up the line for questions. Shannon, if you could open up, we'll be happy to speak with the people on the phone. Thank you. To ask a question, you will need to press star one one on your telephone. Please stand by while we compile the Q&A roster. Our first question comes from the line of Amr Ezzat with Echelon Wealth Partners. Your line is open. Good morning. Thanks for taking my questions. Morning, Amr. Hi, Luc. The first one I've got is on Periscope. Can you update us on the growth prospects there? I mean, you spoke to the challenges, and it looks flat, post IFRS, deferred revenue adjustments. I recall the expectations when you acquired the platform last year were for a much more aggressive growth profile. You spoke early in your prepared remarks to, I think, issues in your conversion cycle. Can you walk us through that and tell me how should we look to model Periscope going forward? Well, thanks for the question, Amr. I mean, we're still very confident in the pipeline that we have with Periscope. As we've shared with you before, the larger deals that Periscope enables us to acquire are with the TRX models. We have a very strong pipeline of various states that are highly interested in establishing that type of model for their procurement. Unfortunately, it was just slower than we expected to convert those deals. We have not lost any work. We still are in the process of actively negotiating with various states the impact of moving to a strong digitized model like we have. At this point in time, you know, we expect that this growth is still there. It's only pushed out. As I mentioned, we, you know, we still are adding, lots of suppliers, lots of agencies to the network, but that's what contributes to our, let's call it normal, organic growth rate. The addition of, any given states to the TRX model would create a discontinuous growing opportunity, which would be substantial. At this point in time, you know, it's, they're all coming. If we could just like speak to the TRX or transaction fee model. When you speak to conversion cycle or issues, is it what, like lack of staff? It's the negotiation with the clients? Like what are the pain points that we should be thinking about? It's a little bit of all of the above. As you were probably aware, you know, well, there's still a lack of staff pretty much all over the place, and particularly in those U.S. agencies. The time to move certain of the discussions is just longer than it usually is. We even see that here in our local government, which is telling us that our CDAE credits will be taking longer than usual to process. We all saw what happened with the passports and the airports and everything else. There's some of that. There is also potentially the summer, which, you know, for the first time, people are seeing the summer arrive without any COVID black clouds, and that's been a long time in the making. Many people were just out. We ourselves are increasing our knowledge of the intricacies of negotiating these deals, which are by definition, relatively complex because they touch complete states with a large bodies of people. Just on one specific contract, the one last quarter where you had updated the contract value, for one of these states, can you give us an update on how things are evolving for that said clients? Is that still the same sort of pain point that you are referencing, or is there a line of sight for implementation? No, actually, we've progressed significantly on that. We've put, you know, I'd like to call it a SWAT team under the leadership of one of our guys who actually came from our Vendor Registry acquisition. We have caught up a significant amount of those unreported spends that we had talked about. As you're aware, the TRX model is not something we revisit every quarter, but we are so far pretty confident that, as we mentioned last quarter, the CAD 2.2 million adjustment is potentially being recuperated, and we'll be able to recoup that probably later in the year. Okay. On OpEx, a decent uptick for the quarter to CAD 25.5 Million dollars, which is a theme we're certainly seeing with a bunch of companies. What does OpEx look like over the next couple of quarters? I believe Luc, you spoke to reducing costs. Do we expect this dollar amount of CAD 25.5 million dollars to go down, or does it stay flat? As you know, Amr, we don't really provide forward-looking guidance. As we mentioned in the remarks, we are looking at various cost containment strategies. Now at this point, I'm not gonna be able to comment on how much that could contribute. Okay. You spoke to salary increases. Are these, like, implemented, like, throughout your organization already, or that's the beginning of the quarter? Correct. Our salaries change in April first with the beginning of the year. Most of that work is accomplished in, let's call it February and March. And obviously, those salary increases were activated starting April first. Okay. So, um- It's fully reflected in the quarter. Correct. When I'm thinking about profitability of your different divisions, and I know you don't segment this way, how do I think about unified commerce versus strategic sourcing? I recall in various forums, you know, like the messaging was like unified commerce is in the negative, strategic sourcing is in the positive. Is that still the same? Are we seeing the profitability of strategic sourcing decline, or is there an update there? I think that the assumptions that you were making earlier are still valid. e-procurement generally is yes on the positive side, and e-commerce, as you know, needs to scale substantially. When we saw really the higher ordering volumes that we saw in and around the pandemic years, our e-commerce solutions generated positive. Unfortunately, with the lowering of the volumes that we see across the board, it does go back into negative territory. Okay. Maybe one for Deborah. On the amendment to the fixed charge coverage ratio, can you walk us through that? I believe last quarter you said that you were very much on side there, then you've amended, well, not this quarter, yesterday. When I'm thinking about, you know, like what steps are you guys taking to deleverage over the next three quarters to ensure you won't be in breach once the covenant is reset to its original 1.2:1 ratio? Yeah. We do have passed the quarter, the compliance at Q1. We're in compliance in the past on our ratios. This is really preventative discussions just in case there is any kind of slippage. As you know, it's the last twelve months EBITDA calculation. The fact that we have had some quarters in the last twelve months where there has been negative EBITDA does put some pressure on that calculation. It's really that preventative side of things where we have requested this reset of the ratios. Obviously, as Luc mentioned just earlier, there's many things in the pipeline, especially in e-procurement, that we hope are in the near term perspective, and also combined with the cost containment measures that we will put in place. You know, we are negative CAD 1 million EBITDA for the quarter. Most of that is driven by the salary increases in the quarter, and we are looking at what we need to do from a cost containment perspective to manage those, not only the ratios, but also the profitability of the company. One thing to add to that, Amr, is that we will stop having that deferred revenue number actually next quarter. It's a pretty small number, and I think we can disclose that, right? It's gonna be around CAD 300,000 and then that's the end of it. In itself, that will help because it's a number that goes directly to bottom line. Understood. Thanks for answering my questions. I'll pass the mic. Thanks, Amr. Thank you. Our next question comes from the line of Deepak Kaushal with BMO Capital Markets. Your line is open. Oh, hey, good morning, guys. Can you hear me? Yeah, we can hear you loud and clear, Deepak. Morning. Well, thanks. Good to speak to you, Luc, again, and Deborah. I just wanted to clarify on Amr's last question or maybe just at a high level, when do you guys expect to be cash flow positive? You know, notwithstanding the working capital reversal, when does that working capital reversal are you expecting it to come, and when do you expect to be cash flow positive on an operating basis for the whole firm? I guess, you know, I'd say that, as we will work towards achieving that as soon as possible, Deepak. As we don't provide forward-looking guidance, I obviously can't give you a date. Okay. If you could just remind me, how much room is available still on the credit facility? Approximately CAD 15 million with the current CAD 50 million revolver, and we have a CAD 20 million accordion that is approved, but we require an approval from the lender to use. That's it. Today, if we were to use our MRR calculation and eligible accounts receivable, the ability to borrow is in excess of CAD 50 million. Sorry, is in excess of? Pardon me, I missed that. Yeah. Yeah. The facility is a CAD 50 million facility. When we talk about room, we have CAD 35.6 million of use of that today. However, if we look at calculating our MRR and AR borrowing base, we could borrow greater than the CAD 50 million limit. Meaning if we want to, we can request use of the accordion feature from the lender. Okay. Okay, that's helpful. Thank you. Just shifting to the operating businesses. On the e-procurement side, have you converted any of your existing customers to the transaction-based model? What might the mix be of- We have not converted new customers to the transaction models. We continue to add various departments and agencies within the states that we had at the time that we acquired Periscope. Okay. The customers that you had organically before Periscope, they're still on the old subscription model. Is that correct? I think I’m not sure I follow your question, Deepak. 'Cause the transactional model applies to the state for procurement, right? The model there is when they ultimately acquire the goods and services on the portal, which is, call it an Amazon-like for government type of portal. Yeah. that contains all of the logic to get rid of all the red tape, the RFPs, and everything else. We today have three states that have adopted that model and are in various phases of implementation. All of our other business still uses the supplier RFP, right? You're talking about MERX's business, et cetera. Correct. Yeah. which we continue to develop. We indicated here that we've added about another 100 agencies during the quarter and about 38,000 suppliers on that. That portion is not transactional. The suppliers, the customers cannot actually execute the order of the goods or the services. It simply manages the RFP and the contracting process. Maybe just to add that. Okay. Understood. We do use the ePRO technology within the non-transaction model. There are some states that are paying us a significant, let's say, a very high annual SaaS subscription to use ePRO. They just pay it with an annual SaaS subscription fee. We do have other states other than the three transaction states that do use that full procure to pay ePRO solution, and we continue to market and look to sell that ePRO solution to even those that won't be big enough to make it economically efficient to use the transaction model. Maybe I could just, you know, take a pause and explain. It's obviously all the same technology called ePRO, and we sell it under two different commercial models. The first, which typically addresses smaller states and cities, 'cause we also have cities that have that, is a regular SaaS model where the customer pays a monthly fee to use the technology. I believe we have about five or six of these customers across the states. We offer a second commercial model, which is the transaction model. It's the same technology, but the business model differs here, where the customer, being the state, does not have to pay a monthly usage fee, but we collect a transaction fee on each of the transaction that flows through the system. That model generates significantly more income over time, and it's really interesting for the state because it's a self-funded model. Got it. I guess what I'm trying to get at is the existing customers you had before acquiring Periscope, is there generally an interest in those customers converting to the Periscope technology and this new type of model, whether that's in Canada? Oh, yeah. Absolutely. Yes. Okay, I get your question. We have many of those that are, you know, in the process of doing that. That's the part where I did have to say that it's a little longer than we expected to convert these customers and get them over the hump, but the interest is still very, very high. Okay. That was the nature of my question. I'm just trying to understand, you know, in converting that customer base, what is the, you know, what is the incremental value for the customer to move to the transactional model? And what's the incremental, you know, economic pickup for you guys? If you convert a customer, are you making 25% more from that customer over two years and they're saving 25% more? Is it like. What's kind of the magnitude of the benefit to both parties in transitioning to transactional model? Well, that's not something we would disclose publicly for mostly competitive reasons because we obviously compete in the markets, and we wouldn't want these numbers to be out there too much. The model is. Okay. Well The model Go ahead. When we enter into a transaction model, we expect that we will receive income and cash that is much larger than the subscription fee. That's just about, you know, because it's based on this volume of all the sales, like, of goods and services that go through the model. The interest when there is a transaction model is both the state as well as us profits from that convenience fee arrangement. The more agencies, you know, the growth upside is certainly there, in terms of the way the model works. Okay. That's helpful. You know, how about I just leave it there? I'll jump back in the queue and see if anyone else has questions, and then I can come back with a follow-up if there's time. Thank you. Our next question comes from the line of Richard Tse with National Bank Financial. Your line is now open. Hi. Yeah, it's James Burns sitting in for Richard Tse today. I was just wondering if you could kinda speak to, like, once the synergies with Periscope have been fully realized, like, what the margin profile, both gross margins and on the EBITDA line might look like at scale. I'm really sorry I can't give you a precise answer, James, because that would basically be giving you some forward-looking guidance. At this point in time, we're not doing that. You know, but we did mention that the synergies would take approximately three years to realize, and we're well on our way to doing that. I'm not gonna be able to give you any specifics. Just one more. Could you just speak a little bit to how the Aldi implementations are tracking at this stage or have they largely been put on hold or kinda what's going given the tougher macro? No, the Aldi implementation, well, it's actually completed. I mean, we are seeing traffic and volumes, and consumers are coming on the site and buying. They continue to add stores at a slower pace. That doesn't require a lot of work from us. Like we mentioned earlier, the grocery are seeing traffic and volumes, and consumers are coming on the site and buying. They continue to add stores at a slower pace. That doesn't require a lot of work from us. Like we mentioned earlier, the grocery ordering online is currently at a lower level than it was during the pandemic and potentially also during the summer. We might see some elevation of or seasonality, I should say, once the colder weather starts to come in. The relationship with Aldi is very good. We've actually had some of our first on-site meetings with them 'cause we have been working with them since the beginning of COVID, but had never actually spent any time locally over there in the U.K. Might see some elevation of or seasonality, I should say, once the colder weather starts to come in. The relationship with Aldi is very good. We've actually had some of our first on-site meetings with them 'cause we have been working with them since the beginning of COVID, but had never actually spent any time locally over there in the U.K. So all is good. We still see some significant volumes of transactions, but not to the extent that we had seen prior to, well, during the pandemic, I would say, when people were stranded and could just not go to the stores. That's great. Thanks. I'll pass the line. Thank you. As a reminder, to ask a question at this time, please press star one one on your telephone. One moment please for questions to queue. I'm currently showing no further questions at this time. I'd like to turn the call back over to Luc Filiatreault for closing remarks. Well, thank you very much, everyone, for being with us this morning. We are all very excited about the three new members that have joined our board over the last few weeks. The board is really now in full action. In our documents. We invite you to consult it and turn in your votes and be with us at the AGM on September 20th, which is just about 5 weeks from now. We're looking forward to continuing to drive the company where the strategy that we had defined is really now in full action. Thanks everyone much, and we'll speak soon. Bye for now. This concludes today's conference call. Thank you for participating. You may now disconnect.