Good afternoon, and welcome to Quisitive's third quarter 2023 earnings conference call. Joining us for today's call are Quisitive Chief Executive Officer, Mike Reinhart, and Chief Financial Officer, Scott Meriwether. Following the remarks, we will open the call for your questions. Before we begin today, I'd like to remind everyone that during the conference call, management will be making statements that contain forward-looking statements within the meaning of applicable Canadian securities legislation. Please refer to the company's forward-looking information disclaimer statement, which can be found on the notice for this call, the website, and the third quarter 2023 earnings release. Now, I would like to turn the call over to Mike Reinhart. Sir, please proceed. Thank you, operator, and good afternoon, everyone. We appreciate you taking the time to join our Q3 2023 earnings call. Let me begin by addressing the announcement we made yesterday regarding the sale of PayiQ to Fulcrum IT Partners. Our decision, which I will detail shortly, comes as part of a strategic review process over the past few quarters by management and the board, including the work in partnership with William Blair. This comprehensive evaluation aims to realign our resources and strategies to maximize shareholder value. It comes as a necessary step, shaped by our understanding of the PayiQ business' needs and the current public market environment. PayiQ has arrived at a critical point where consistent capital investment is essential for growth. Our journey towards commercialization has seen remarkable advancements, notably establishing direct connections with Visa and Mastercard. The next phase crucially involves investing in capital for acquisitions, focusing on acquiring companies that offer technological advancements, improving connectivity and scalability. Such strategic acquisitions are key to accelerating PayiQ's growth trajectory. In the current public market environment, such levels of investment and execution pose significant challenges for Quisitive. We recognize that to unlock the potential of PayiQ, a different path was needed. Under the agreement, Quisitive will transfer ownership of PayiQ to Fulcrum in exchange for an equity stake. This allows us to not only benefit from the financial returns as PayiQ grows in the market, but also to maintain a connection with its future development. The divestiture reduces our annual capital allocation by nearly $12 million, a strategic move to optimize our financial resources and focus on key growth areas. This transition allows us to channel our efforts and investments more intensely into the cloud solution business, reinforcing our core competencies. The partnership with Fulcrum will include a close strategic alliance to support the commercialization of PayiQ, as well as leverage Quisitive's partnership with Microsoft and our Microsoft IT solutions capabilities, creating incremental synergy between Fulcrum's IT services companies and Quisitive's cloud solutions business. The BankC ard business will be retained as our focused payments division. This step is the first in our strategic review process, marking a move towards greater focus and strategic alignment. It's a decision that we believe positions both Quisitive and PayiQ for greater success in the future. Next, let's talk about Q3 performance. During the quarter, our company navigated a rapidly changing market environment, building upon the challenges encountered in the second quarter. Amidst these obstacles, our resilience and strategic flexibility have shown through. A highlight has been the performance of our cloud solutions sector, which stood out as a pillar of success, showcasing strong performance and significant recovery. While we take pride in the notable improvements seen in our cloud solutions business during the quarter, it's important to acknowledge that this period also brought some challenges in our BankC ard business due to market conditions starting in the second quarter and persisting into the third, which had a tangible impact on Q3 results. On a positive note, the BankC ard management team has shared directly with me that they feel like the business has stabilized exiting Q3 and anticipates steady performance in Q4. On the sales front, the team is working to deploy new SMB market products to look for ways to increase merchant applications to drive volume. Scott will address the financial components and key payments metrics in more depth, but from a strategic standpoint, I plan to work closely in collaboration with the BankC ard leadership team to fortify the business in aspects we can influence and tailor our strategy to align with the prevailing economic environment. Now on to the cloud business. In Q3, our cloud division demonstrated a strong return to margin growth, a testament to our cost or to our strategic cost-saving initiatives. We're witnessing a promising rebound in this sector. For over six months, sales have been consistent, underscoring the robustness of our fundamental business proposition. A key factor has been our team's rigorous approach to financial discipline and cost efficiency, leading to improved margins and utilization in the recent quarter. I'd like to express my gratitude to the entire cloud solutions team and their leaders for their unwavering commitment and contribution to these enhanced outcomes. With our prudent management and cost reduction strategies, we expect these positive trends to persist, laying strong groundwork for sustained future growth. Scott will elaborate further, but it's important to mention that while we're on a positive track, our revenue-generating capacity has been impacted by this year's cost-cutting measures. Therefore, year-over-year comparisons don't fully represent our progress throughout the year. Implementing strategic expense management was essential for enhancing our operational efficiency, especially considering the increased challenges we faced this year. Nonetheless, a quarter-over-quarter analysis reveals a boost in both gross profit and Adjusted EBITDA margins. Our recurring revenues now represent 37% of cloud revenue, up from 31% last year. This trend bolsters our confidence in the financial stability we've achieved and sets a solid foundation for the business. In our sales and marketing efforts, we've been actively engaged in advancing our pipeline, establishing Quisitive as a reliable partner for our clients, and aligning with Microsoft's key initiatives to boost sales. In the third quarter, we closed six large deals, each providing over $1 million in contract value, and the total contract value of our top five deals exceeded $10 million. Notably, there are several encouraging trends within these figures. While we continue to thrive in specific sectors like the healthcare and state and local government, our top deals are spread across various industries, including healthcare, state and local government, oil and gas, and technology. This diversification shows the effectiveness and broad reach of our go-to-market strategy. Moreover, these significant deals underscore the success of our cloud solutions approach. Our customers are increasingly seeking service providers capable of offering comprehensive, integrated services across various domains to facilitate a complete cloud transformation. This quarter, our commitment to excellence was further underscored by the notable achievement of securing the Information Protection and Governance and service advanced specializations with Microsoft. The recognition highlights our commitment to staying at the forefront of innovation and providing best-in-class solutions, as well as dedication to our partnership with Microsoft. In the quarter, we are proud to collaborate with Microsoft as a preview partner, leveraging Microsoft Fabric for healthcare data solutions. We implemented the new healthcare data solutions in Microsoft Fabric to the Ontario Workers Network and Ottawa Hospital, among others within the network, and our efforts and positive results were showcased by Microsoft as a featured case study. The continued robust demand in this sector underscores our success in meeting the evolving needs of healthcare providers, and we are committed to leveraging our trusted partnership with Microsoft to continue exploring new collaborative ways to advance and innovate in pursuit of improved patient experiences and health outcomes. As you might be aware, Microsoft is at the forefront of the AI revolution, showcased by their industry collaborations and advancements in products like Copilot and Azure AI. Their strategic emphasis on AI is a significant boost for our pipeline as we align our services to this wave of innovation. We are confident that the surge in AI will spur demand for our core services as customers need solid IT infrastructure, data management, application development, and modernization to effectively adopt AI and harness its benefits. Most businesses currently lack the necessary foundation to integrate AI meaningfully, so we positioned ourselves as a strategic partner to guide them into this new era of enterprise technology. Recently, we organized a four-city event series introducing AI concepts, which received considerable positive feedback from customers, highlighting the need for education and implementation bridges from their present to an AI-inclusive future. We're fully aligned with Microsoft's AI vision and are focusing on the offerings and technical expertise required to be Microsoft's most effective partner. Meanwhile, we continue to concentrate on our core services to prepare customers for future innovations. While our team consistently delivers strong performance, it's important to remember that due to the holiday period and associated paid time off, Q4 traditionally experiences a slowdown in the cloud solutions sector. Despite the seasonal trend, we are committed to seizing every available opportunity and maintaining solid performance for the rest of the year. Before I pass the mic to Scott, I recognize that this is our final call of the calendar year and wanted to provide a brief reflection. 2023 presented new and real challenges to our business, but we've demonstrated adaptability and resilience that have generated measurable outcomes. In the cloud business, our strategic cost reduction and careful management and collective efforts of the team have honed our execution and strengthened the business. You'll see the stabilization in the financials from Scott shortly. In payments, the sale of PayiQ as a result of a careful strategic review of the business, and is an incredibly positive next step in the platform's journey. I feel proud of the contributions Quisitive has made to get PayiQ to this point. We look forward to the closing of that deal and in the future of the platform as it transforms the payments industry. Our BankC ard business continues to be a significant asset and look to leverage this business to help drive future value. Considerable effort is still required, and we are committed to further investing in our sales and marketing initiatives to enhance our business and achieve robust growth. We are vigilantly monitoring the upcoming market trends and stand prepared to adjust our strategy accordingly. However, I believe that our activities over the past quarter and a half have strategically positioned for stability, innovation, and future growth. Thank you all for joining us as shareholders and supporters. I'll turn it over now to our CFO, Scott Meriwether, to discuss Q3 2023 financial results. Scott? Thanks, Mike, and thank you to all who are joining us for today's call. To reiterate Mike's message from before, we are very proud of the Q3 results and the turnaround that was accomplished within our cloud segment. Our revenue within cloud has stabilized, and we've made appropriate changes to our cost structure to align to market demand and to return to our expected margins. The relative strength of our cloud performance was somewhat offset by reductions in payments as BankCard experienced greater operating costs and PayiQ expenses increased. We will break down the impact of PayiQ and the removal of our future investments in the platform in later discussion. As a result of the revenue-producing headcount reductions we made, year-over-year comparisons aren't indicative of performance. Quarter-over-quarter changes are a better depiction of the company's progress, so we will present both in this discussion. Moreover, Q3 of 2022 was a record quarter for Quisitive, which further impacts meaningful comparisons. Revenue in the third quarter of 2023 decreased 2% from the prior quarter, as cloud revenue increased quarter-over-quarter and payments revenue decreased quarter-over-quarter. Comparing to the prior year, revenue decreased 9% to $44.4 million in Q3 of 2023, from $48.8 million for Q3 of 2022. The prior year trends here are opposite of the quarter-over-quarter trends, as cloud revenue was the primary driver of the year-over-year decrease, reflecting overall market trends and our reduced professional services headcount. Payments revenue in the third quarter was up more than 6.5% year-over-year. The most indicative financial metric that best depicts the progress made during the third quarter is gross margin. Overall, gross margin was up almost 10% for Q3 of 2023 from last quarter, reflecting the cost structure changes made within the cloud segment. Gross margin as a percentage of revenue increased to 41.3% in Q3 of 2023, from 36.9% last quarter. Overall, gross margin decreased 10% to $18.3 million in Q3 of 2023, from $20.3 million in Q3 of 2022. Gross margin as a percentage of revenue was more similar, albeit slightly less in Q3 of 2023 at 41.3%, compared to 41.6% in Q3 of 2022. Adjusted EBITDA increased 61% from the prior quarter, to $7.0 million for Q3 of 2023, from $4.4 million for Q2 of 2023. Adjusted EBITDA as a percentage of revenue was 15.8% for Q3 of 2023, an increase from 9.6% in Q2 of 2023. Compared to the prior year, adjusted EBITDA decreased 7.7% to $7 million for Q3 2023, from $7.6 million for Q3 of 2022. Adjusted EBITDA as a percentage of revenues was 15.8% for Q3 of 2023, an increase from 15.6% in Q3 of 2022. We'll now dive in further on the specific performance of our segments. Revenue in our Global Cloud Solutions segment increased mildly, approximately 1.5%, to $30.7 million for Q3 of 2023, from $30.2 million in the prior quarter. Revenue within the cloud segment has stabilized over the past two quarters, and we expect similar revenue trends in Q4 after adjusting for the normal holiday seasonality. Our gross margin within cloud was a record 43%. This was despite the extra staff costs we carried in July prior to the staffing changes. Our professional services teams have been running at high utilization ratios as we overcame the prior quarter's weakness. Our teams have leaned in and produced a very strong quarter. We have some outstanding team members, and we're thankful for their commitment to quickly right the ship after Q2. Going forward, we expect our streamlined cost structure to continue to produce strong gross margins. We will need to further invest in our AI teams and the sales expansion in FY 2024, so we don't expect our gross margins to grow in FY 2024 from the current run rates. The cloud segment's adjusted EBITDA after the allocation of corporate costs was CAD 5.7 million in Q3 of 2023, compared to CAD 2.9 million in Q2 of 2023. EBITDA margin increased to 18.7% in Q3 of 2023, from 9.6% in Q2 of 2023. We removed non-global resources as part of the staff reductions we made to start August, which had a significant EBITDA margin impact. We also focused on cost containment in Q3, and as a result, produced a very strong EBITDA quarter. On our last earnings call, we noted that we believed we had brought our cost structure back into line and that we had set the company on proper footing. I believe the Q3 results speak to the success of those efforts. Pivoting to the global payment segment, revenue increased over 6.5% to $13.7 million for Q3 of 2023, from $12.8 million for Q3 of 2022. However, revenue was down 9% from Q2 of 2023. Charge volume on our direct portfolios was down 4% year-over-year. The revenue growth was driven by the volume growth on our third-party revenue streams, which grew to $157 million in Q3 of 2023, from $76 million in Q3 of 2022. When combined, our total volume grew 3.5% in Q3 of 2023 over Q3 of 2022. On prior calls, we've noted that these third-party portfolios are more seasonal in nature. We saw a decrease in the charge volume from $204 million in Q2 to $157 million in Q3, and we expect further decreases in Q4. Last quarter, we noted that Q2 of 2023 included some one-time residual expenses at BankCard that reduced gross margins from historical levels. The gross margin percentage at BankCard was 34% for Q2. Gross margin returned to 38% in Q3, in line with our expectations. Adjusted EBITDA for our payment segment decreased to $1.3 million in Q3 of 2023 from the $1.4 million recognized last quarter, and the $2.9 million recognized in Q3 of 2022. The decrease reflects greater expenses at PayiQ, a larger allocation of corporate expenses, and reduced performance at BankCard. Before the allocation of corporate costs, BankCard contributed $3.9 million of EBITDA in Q3, as compared to $4.1 million in EBITDA in Q2 of 2023, and $4.7 million of EBITDA in the prior year, or Q3 of 2022. We incurred almost $0.5 million of one-time expenses in Q3 of 2023 that impacted the quarterly results. EBITDA for the payments division includes spending on the PayiQ platform, which reduced payments EBITDA by $1.8 million, as compared to the $1.6 million in Q2 of 2023 and $1.6 million in the prior year for Q3 of 2022. We noted on the last earnings call that our staff reductions in August, and we expected Q2 and Q3 of 2023 to have similar EBITDA impacts. Ultimately, we expect our quarterly EBITDA losses from PayiQ will be approximately $1.5 million in Q4, and this could vary if the sale closes prior to December 31. To reiterate prior points, PayiQ will be removed from our results in FY 2024, which will add back approximately $6 million of annual EBITDA to our consolidated EBITDA. From a cash flow perspective, another $5-6 million will be added back in FY 2024 from the reduced CapEx spending on PayiQ. We believe this will strengthen our balance sheet as we move forward. One separate administrative point related to the income statement and the sale of PayiQ... After November, we will no longer have minority interest, so Q4 2023 results will be the last time minority interest will be reflected on our income statement. Moving to the balance sheet and cash flows. At September 30, we had $71 million of term loans outstanding and $5.6 million of cash on hand. As of September 30, our total leverage ratio was 2.6x. Our quarterly debt paydowns are $2.4 million. Cash flows from operations in Q3 of 2023 were CAD 5.2 million, an increase from CAD 3.0 million in Q2 and CAD 2.3 million in Q1. Our cash flow used in investing activities was CAD 2.0 million, similar to the CAD 2.1 million last quarter. These investments were primarily driven by investments in PayiQ. CapEx is expected to decrease below CAD 1.5 million in Q4. After the sale of PayiQ, we expect CapEx to run closer to CAD 1 million-CAD 1.5 million annually at our current run rates, depending on future investments that we choose to make. One item to highlight on the balance sheet, all of our debt is classified as current at September 30. During our review of some legal agreements in October, we found a default provision in the contract that triggered a Cross Default Provision in our credit agreement. We brought this to the bank's attention and subsequently obtained a waiver for the default. However, we did not have the waiver in place at September thirtieth, so our entire credit agreement balance is classified as current at September thirtieth under IFRS rules. Our debt will go back to its traditional short-term and long-term classification as of October first. Our working capital deficit at September thirtieth, after adjusting for the debt that will be reclassed back to long-term on October first, was CAD 7.4 million. We did not make any earn-out payments in Q3. We continue to have CAD 10 million of projected earn-out payments and short-term liabilities on the balance sheet at September thirtieth related to the BankCard earn-out. Of the CAD 10 million, CAD 5 million will ultimately be paid with equity per the contractual terms of the purchase agreement. There's another CAD 2 million in accrued liabilities related to the Mazik earn-out. Quisitive has discretion how it will make that payment in cash and equity. As a result, our working capital deficit at September 30th of CAD 7.4 million is overstated, as it includes earn-out amounts expected to be paid with equity. The current weighted average interest rate on our term loans is 8.12%. Q3 brought several changes to Quisitive. Given the strength of cloud with the Q4 holiday seasonality, the change to PayiQ and some of the related expenses, related to the sale, and some softness we have seen at BankCard, we are updating our Q4 guidance as follows: Revenue for Q4, a low of CAD 41.5 million to a high of CAD 43.5 million. EBITDA for Q4, a low of CAD 6.75 million to a high of CAD 7.75 million. This concludes our prepared remarks. Thank you all for your time this afternoon. We're now ready to open the call for your questions. Operator? Thank you. As a reminder, each analyst will be limited to a maximum of two questions. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate that your line is in the question queue. You may press Star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we pull for questions. Our first question will come from the line of Christian Sgro with Eight Capital. Please proceed with your question. Hi, good evening. I'll ask both questions today on the PayiQ business and relationship going forward. First, on the cost side for Quisitive, you guys quantified the CAD 12 million of capital allocation annually. What's the path to realizing that savings? Is there a bit of a step function through Q1, Q2, or you know, as the headcounts and the costs sort of moved over on day one? Like, how would you think about the margin progression through the year? Day one savings, so that $1.5 million on average of EBITDA burn per quarter should begin on January first, and the CapEx should stop- should decrease to zero as of January first. They are taking... The buyer is taking full responsibility for PayiQ as soon as close happens. So assuming that's a 12/31 close, if not before, you'll see an immediate impact and immediate lift in our financials. Okay. Thank you, Scott. And the second question will be more on the revenue side. Could you talk a little bit more about the continued relationship of Fulcrum and the PayiQ platform, and then talk a little bit about the, the earn-outs at the end of the three-year period and, you know, your ability to achieve those full earn-outs? Yeah. So first, just relative to, you know, the way the relationship has evolved, and there's multiple facets to it. Obviously, Fulcrum has a large portfolio of IT services companies, and we've had ongoing discussions and interactions with them and actually are doing some joint sales activities with them, leveraging our Microsoft capabilities to go to market together with them. So that, that's been in flight and been something we've been activating, we'll continue to expand and invest in. As it relates to PayiQ, similar to what we've discussed before, we'll look to use our cloud solutions sales engine to be able to be a reseller of the PayiQ platform as they activate and go to market in bringing those things together. So you'll see us working through our partnership model as a joint resale relationship, leveraging our cloud solution services back into their customer base and us doing the same with our capabilities, bringing in PayiQ as it is commercialized into our customer base, similar to the way that we had thought about it when it was part of Quisitive. On the revenue side, there are step functions related to revenue targets that will trigger over each year, the earn-out payments as described.... And it's a step function, year 1, 2, 3, with the value of the earn-out, as well as the target increasing each year, knowing that year 1 with PayiQ has a much smaller revenue contribution opportunity based on first completing commercialization, things like that, and stepping up from there. Each of those will be measured as part of a volume flow and revenue generated on the PayiQ platform through the various forms that may happen, whether it's us selling to our customers, whether it's them selling into their retail customer base, which Fulcrum has a big portfolio of retail customers that are future targets. As well as one of the key things that Fulcrum is in a position to do that was difficult for us, as described in our commentary both yesterday and today, is doing aggressive acquisitions in the payment space, looking to acquire gateway platforms with volume and acquiring potentially other ISOs and things like that, to build scale within their portfolio of payments, to create volume. And all of that revenue that flows through the PayiQ platform as they bring it to life, we get credit for as part of that earn-out structure. That sounds like helpful color. Thanks for taking my questions. Thanks, Christian. Thank you. Our next question comes from the line of Rob Goff with Echelon. Please proceed with your question. Thank you very much for taking my question. My question would be, with respect to your backlog or your pipeline, could you give an update on where that stands? And if there's any crystal balling in terms of where you do see the momentum picking up on the cloud side, is that something you won't know until January? I mean, we obviously have backlog. We don't report backlog metrics. We're working to benchmark those things as we get more mature in our processes. But nonetheless, as I mentioned, we're starting to see some of the larger deals. If you remember back earlier in the year, in particular, Q1, Q2, where we talked about some of those larger deals deferring, part of the commentary I had today was some of those larger deals coming to life and, you know, total contract value of CAD 10+ million on some of those deals in the quarter. So the good news, we're starting to see some of that larger deal size, which is important to creating meaningful backlog. We've got some long-standing customer relationships that we're doing the annual renewals on that, you know, occur here in the month of December, typically, that we're looking at, and seeing those renew consistent with what we've had in the past. So, all of those things are positive signs. You know, if you look around and you follow any of the other major players, they're all talking about the first half of next year continuing to have some softness. You know, so we're not planning significant growth through the first half of the year, but we are seeing the ability, as we've talked about, to consistently maintain our revenue streams, and we think there's opportunity of growth. We do believe that all this AI momentum that Microsoft's doing will start to create meaningful opportunity in the back half of next year, and we're starting to see some of that already materialize in conversation with customers and things like that. So again, our plan is, you know, for modest growth through the first half of the year, and see demand again, with sizable deals starting to come together and getting much better at both identifying and delivering those, and then building momentum as we go through the year. Very good. Thank you. And perhaps for Scott, could you give us a sense for the ebbs and flows within the, the working capital components? You know, noticing that your prepaids were up, Q-on-Q, accounts payable drawn down. Are these ongoing trends or may just flow back the other way in Q4? Nothing specific to note as far as anything there other than it being just normal seasonality. So there's nothing core changing within the business. I think you'll see us maintain a lot of this has to do with timing and where payment schedules fall at the end of a month and where it falls in our weekly payment time. So I wouldn't project or take anything specific out of those trends. I think we'll stay within our normal run rates that are kind of average out over time. Okay. Thank you. Thank you. Our next question comes from the line of Jerome Dubreuil with Desjardins. Please proceed with your question. Hi, thanks for taking my question. So you've been very nimble in addressing the cost base of the company to kind of match the revenues there. When we start seeing more growth coming back, do we need to see costs going up maybe before we see those revenues go up again, or this can be done pretty much at the same time? We're certainly looking, as Scott referenced in his commentary about we anticipate making investments in sales and marketing, not significant, but there will be incremental investments and some of the savings from the PayiQ operation will get allocated to help drive some of that investment to drive sales and marketing across our business, to help build the momentum to that back half of the year. Obviously, you don't make an investment in sales and marketing and have it return immediately. I wish that were the case, but, so we'll, you'll start to see some of that come in in Q1 or Q2, to drive that growth as we move to the back half of the year. It'll be modest investments, but there will be some of the reallocation of PayiQ savings to that process on both the cloud side as well as the bank card business. Okay, thanks. Then, again, something that Scott has mentioned, but just maybe some more, some more color on this one. In terms of the CapEx reduction or the free cash flow reduction, the second $6 million for PayiQ. So the first six is on the EBITDA side, you provided kind of color on this one. For the second one, that almost matches all of the CapEx you have been spending over the years. So what's left in terms of the CapEx investment? I think you might have mentioned $1-$1.5 million, but just if you can clarify that. Yeah, there's some mild PP&E that just comes with, you know, computers and furniture and those kind of things, but that's a very small amount, you know, $100,000 a quarter or less. The rest of it is really investment in our other proprietary products within cloud. Specifically, the MazikCare product has been one that has led the way. And, that will ebb and flow based on what we think we need to bring to market, customer demand, but that'll be the primary driver for us in FY 2024, is investment in that product and/or any other products that we just think are opportunities that for us to develop as we move forward. But, you know, historically, looking at the numbers for the last few years, it has been dominated by the PayiQ spending. And so, though this frees us up to make some more of those investments as we see fit and as we see market opportunity, but our CapEx spending will decrease dramatically, as noted. Okay, thanks. And then last one for me. You know, there's just been a lot of action in your payments division over the last couple of months. Can we—should we expect that the operations are, are running smoothly now? Yeah, I mean, the business has been operating. I mean, obviously, the PayiQ has been operating independent of the bank card business until that commercialization occurred anyway. So, you know, then the bank card team and management team continues to operate the business. I've had almost daily conversations recently. We've had lots of good discussions about the business, giving us updates. So, the team is working hard to help us drive the business. And, you know, everybody's professionals about that and take doing our jobs, and we're working together to drive value in that business. Good to hear. Thank you. Thank you. Our next question comes from the line of Stephen Boland with Raymond James. Please proceed with your question. Thanks, guys. Scott, just the guidance you gave is... I apologize, but I'm just trying to go back through my notes. For Q4, is that guidance down from the previous guidance that you gave? I thought you were more in the 46-48 for Q4, in terms of revenue, now it's down in the low 40s. Did I misread that, or do I have that wrong? No, you're, you're correct. A lot of some of that is driven by just some of the Q4 seasonality that we're expecting in the cloud side. Our margins have held and are stronger than where we had originally projected. We have a slight... I'll come back to revenue in a second. We have a slight pullback in in the EBITDA numbers, just based on, driven some by that revenue, but then also just based on some of these expenses that we see that we're going to have related to a lot of the activity we've had. But back to, back to revenue. Some of that is cloud driven, and then some of it is also due to just some softness we've seen in BankC ard. It's the growth rates we've been experiencing over the last several quarters are leveling out, and then we are seeing some attrition on some of that third-party seasonal revenue that it's attriting more aggressively than what we had in that last projection, and so felt the need to update that range. So we brought revenue down more, but we believe it'll be at higher margins. So while we did bring EBITDA down, we did not bring it down as aggressively. Okay. I guess the second question I have is definitely on the BMO loan agreement, you know, the classification from long term to short term. I think that reverses. I'm just trying to get an idea of what is the, you know, what is your required payback on the BMO facilities or any of the debt heading into 2024? Like, I know the number is CAD 70 million, something like that, so- We paid down 2 point-- I'm sorry for stepping over you there, Steve. Yeah, go ahead. We paid down, we paid down a $2.4 million dollar pay down every quarter. It's a, That's a static number and has been that number for some time now. So that's our, That $2.4 million is our pay down every quarter through the life of the loan. Okay, so basically, some of that language in there about the waiver and all that, that has no impact in 2024 in terms of them calling debt or facilities or things of that sort. So the 2.4 per quarter is what is required from your point? Correct. That's no change from prior quarters or going forward. It literally was an issue for one day. Yeah, it was the waiver. We will flip back to the historical presentation between short and long term on October first. We call it a contractual thing and just had to bring it to everyone's attention because we noted it. But let's call it more of a legal drafting issue than anything else that we caught. But that said, it, because of IFRS rules and the timing of when it was caught, it causes some noise on the balance sheet, but everything will return to its historical presentation within the next quarter. Okay. I'll, I'll sneak one more in. Just on BankCard. So this is maybe a little bit puzzling, you know, as you sold PayiQ, part of BankCard and, and getting into the ISO business was to funnel merchants over to, to PayiQ. With that, as part of another organization, is the incentive still there at the BankCard, you know, level, to, to move clients over, to PayiQ? I mean, I presume they could still go out and find their own payment processors, or use the existing ones that they have. So is that the- is that still, you know, one of the strategies, you know, to basically get more business into, into PayiQ going forward? ... Yeah, I mean, obviously, as Quisitive is now a shareholder in Fulcrum and their payments business and have opportunity for earn-outs and things, we're obviously, as a group of shareholders, incented to drive volume. So as the commercialization occurs, we would still look to participate as part of that partnership to do that because it would be mutually beneficial to us as organizations from both our current preferred share position as a Quisitive entity, as well as the opportunity to leverage earn-out. Okay. And BankCard, as I think you've said it tonight and last night, is still part of this ongoing strategic review in terms of there's still many possibilities or several possibilities that you may do with that entity. Is that a fair read? Nothing specific about that entity other than we continue to look at the company and the assets the company has, and making sure that through that strategic alternatives evaluation, we look at the best way to unlock value for the company. Creating growth and activating value is what we'll do, and that's what management board and the outside advisors with William Blair are helping us work through. All right. Thanks, guys. Thanks. Thank you. Our next question will come from the line of Gavin Fairweather with Cormark Securities. Please proceed with your question. Hi there. This is Graham Wong for Gavin Fairweather. Thank you for taking my question. So just back on the BankCard business, I was wondering if you guys could maybe give a bit more color on your sort of short term, but as well, like, the longer term strategy of the business. Like, how you guys are gonna reaccelerate growth longer term, assuming that you guys don't sell this part of that strategic review? Yeah, I mean, so set aside the strategic review kind of thing. You know, had good discussions today with some of the members of the BankCard team talking about, you know, kind of go-to-market. There's some new offerings, and we'll get more detail on that, but they're rolling out with their sales team some new product offerings, some new terminal devices, cloud-based terminal devices, some new product offerings that they're taking into the SMB market to complement and arm their sales team. They'll actually be deploying that to their sales team this weekend. So as part of that, creating new offerings and bringing those to market, looking at ways to... I know they discussed with me as well, some things they're working on around, you know, an agent channel and how do they better leverage agent channel to help complement sales. So, you know, in that whole payments universe, the ISO ecosystem, they're doing the kinds of things. We're working together with them to activate those channels independent of the PayiQ, and always have been, you know, how to go drive merchants. They've got their direct sales force that continues to work, and they're arming them with new tools to go and look to capture applications and drive increased volume and do those things, as well as doing some things from an agent side that maybe they haven't emphasized as much in the past. So we'll continue to look at those opportunities again to continue to drive sales. And there's some other industry things that we'll look at. As you know, we've got some industry concentration, and, the team has been looking at some different areas, that we might be able to drive, some of the unique capabilities, from an underwriting and risk management perspective that are always been part of their core DNA. How do we, really continue to enhance those and look at other industries that we could potentially, drive momentum in? Continuing expanding banking relationships was a big part of that and some discussions we've had on that front as well. So again, all those things continue in motion and exploring them. And, the team, has been working, to, you know, kind of ideate through some of those things, especially as we, begin to move into the new year. We'll be putting together kind of our game plan for 2024 and working collaboratively, as I outlined, to put that thought process together and go to market. That's great. Thank you. And then just one quick one on the, contingent consideration for the Mazik and BankCard USA. You guys might have answered this on the call, so I apologize, in advance. But can you maybe just give a bit more clarity on the timing of those? Are you expecting to take them in Q4? That'd be great. Thanks. Our expectation there is as debt covenants allow to get that paid. So our goal is to do what we can to get those paid as much as possible in Q4. Otherwise, if it progresses beyond that, you know, we'll pay them as soon as we can, given the credit agreement constraints. The Q2 weakness we had put some limitations on us. So very happy at what Q3 has done. The sale of PayiQ further, you know, frees up some available cash for us and some pressure underneath those covenants as it relates to some of our fixed charges. So, we're working with the bank constructively right now to how we're going to treat everything, so, but we remain committed to get those paid as quickly as possible. That's great. Thanks. That's it for me. I'll pass the line. Thank you. Thank you. Our next question will come from the line of Robert Young with Canaccord Genuity. Please proceed with your question. Hi, good evening. Could you maybe give a little more color around the gross margin improvement quarter-over-quarter, year-over-year? Just what is? Is that driven mostly by the utilization? I think that's what you'd said on the call. Is there anything else in pricing? Is these six large deals, is there something in there? Is there any mix shift or anything that would be a contributor, or is that really just utilization? It's two factors, Rob. One is recurring revenue has increased as a percentage, and so most of that recurring revenue falls a higher margin percentage, sometimes 100% margin, but software to the bottom line. So recurring revenue helps drive that. We will continue to focus on driving recurring revenue in future quarters and our sales channels to continue to drive that up. ... The other part of it, just from Q2 to Q3, was we didn't carry the bench that we carried. We had way too much bench strength in Q2, compared to where we sat—you know, compared to what the market demand was and compared to what our sales channel had in the pipeline. So we had a lot of extra sunk costs or just dead costs, bench cost in Q2. We responded to that accordingly, right-sized the team. As part of that too, we also—there was a mix of both direct and indirect costs. That's why you also see a greater impact to our EBITDA margin, even beyond the gross margin changes. But most of it was realigning our staff size to market, to just overall market, some of that aligning our cost structure that goes with that, or cost outside of just the headcount, and then recurring revenue going out. So those were the three major drivers. But you know, I think this run rate going forward is. I wouldn't expect it to increase dramatically from here because we do need to reinvest in the company. But I do think we can continue to achieve these low 40s gross margin percentages, especially in cloud, as we move forward. Okay, that's a lot of detail. Thank you. And then maybe just a couple of clarifications on previous questions. Just on the, the BMO debt, I believe that the maturity is 2026, I think, if I remember. That hasn't changed, August 2026, is that still the same? Right. Correct. It- Okay. Other than... You can go back to our June 30 financials, and that's what our 12/31s will look like, you know, other than just the quarterly $2.4 pay down. So, Okay. That. Great. So, the switch to current, there's no need to renegotiate or to replace that debt in any way in the short run, I guess, is the core of the question. Correct. That was, like I said, it was we crossed a reporting period in IFRS, and as a result, everything gets reclassed. The waiver was received and taken care of, so we're good there. But just that, that's why we wanted to address the balance sheet noise immediately and just let you know the details of what it was, as opposed to anyone getting nervous about it. Great. That's helpful. And then, maybe it might be helpful just to, if you can share the details, just maybe any color on where you are in the strategic review, what's left. I know there's two big questions that others have raised already. Just, you know, what is the value of BankCard sort of, under the Quisitive banner, without PayiQ there? And then, what's the maybe Age Checker, if you could... Did that move with PayiQ, or is that still part of the business? And is that a payment related business that maybe would be better served in another place? And then I'll pass along. Great. Yeah. So Age Checker is embedded into the BankC ard business, and connected into its merchant base and things like that, and tightly coupled, and so the intent would be for that to continue. Could it be sold off? Potentially, but I'm not sure that there would be strategic value to consider that. But certainly something that you know, we look at across all of our businesses, some other subsets of our business that you know, could potentially be partitioned out. But the focus as we look at what we're doing, BankC ard is a good business that you know, we've had a little bit of downward pressure, and we need to work and you know, kind of go realign sales and some of the things to position. The things we're feeling and impact we're feeling is relatively consistent across the marketplace in general. There's you know some pressure in terms of especially smaller businesses. You got a lot of them that are feeling stressed and going out of business. You're starting to see some of that happen and doing those things. So you get a little bit of attrition from some of those kinds of things. But yeah, so generally, we'll continue to look at you know where and how to scale and grow those. At the same time, always be looking at where are the ways to unlock value from all the assets of the company to again return shareholder value. But you know no specific actions that we have happening at the moment. Step one, as we described, is PayiQ, and we'll continue to evaluate other alternatives as we go forward. Okay, thanks. Thank you. As a reminder, if you would like to ask a question, please press star one on your telephone keypad. Our next question comes from the line of Divya Goyal with Scotiabank. Please proceed with your question. Good evening, everyone. Mike, I wanted to get a little bit more clarity on this valuation for PayiQ. So, overall, it's a $45 million valuation you mentioned. You provided the details about $27 million investment. I was just curious, why did we cap the earn-outs to $18 million? Like, when I look at some of the payment acquisitions and the potential of PayiQ, it just—I, I'm just trying to understand, what was the rationalization for capping the earn-outs at any number there? Well, there's two things about it. Remember, we're getting shares in an entity, and the intent is for those shares to be part of a public vehicle in the future that we should have the opportunity to benefit from. So there should be potentially a future upside in that space as well. But set that aside for a second. You got to remember, valuations in the payment space have come down dramatically, and for something that's a pre-revenue, pre, you know, and basically still in a VC mode, those valuations are very difficult to have a metric to drive it around. And second of all, you know, right now in the marketplace, those are challenging to get high values from. So like everything else, those values are down over the last 18 months or so, for things that... You know, everything is valued based on EBITDA and things like that. And so pre-revenue, VC level kinds of things, valuations are a bit tricky. We worked with William Blair to kind of create a range that we thought it looked like, and this gave us an opportunity in that range, along with what we think could be some interesting upside, assuming that, you know, they're successful, and we're successful in helping them be successful in, you know, delivering and scaling through M&A and building growth and taking it public and having future upside in that regard. But yeah, very difficult on a pre-revenue product in this current market, unfortunately, from a valuation side, given that it is fundamentally a VC investment at this stage. Yeah, I know. That makes sense. Just another question here on the Fulcrum specifically. So yesterday, you mentioned that, like, Fulcrum IT and Quisitive, and today you highlighted that again, are gonna partner. I'm just curious to understand, so is it gonna be that you're gonna join bid on projects? Or what kind of partnership, to what extent are we looking at the partnership here? Beyond the PayiQ and the PayiQ commercialization- Yeah. What exactly is Fulcrum and Quisitive gonna do together on a go-forward basis? Yeah. So, you know, some things that we have in process now. They've got a one of their segments has a pretty large healthcare customer base, and they don't have Microsoft services capabilities. They've got other IT services that they provide, mostly network infrastructure services, some managed services around data centers and things like that, and they do a great job of that. They resell hardware. But these customers are looking for IT and sophisticated solutions within these healthcare environments that they can't address, and they're going to be our sales arm, and we'll have joint economics as part of it. But we'll bring that expertise, and we've got some sales pursuits that we're jointly working in a very way, where we'll complement them in their customer base, where maybe a competitor might come in and capture that. They get to kind of control their. They've got these great long-standing relationships, sometimes 20-plus years, in these accounts, and having worked with them, trusted relationships with buyers, but yet they didn't have this capability. So as part of our partnership is we'll bring that expertise into those accounts to do that, and we'll have some shared economics as part of how we participate in that. So that, that's the focus of what you'll see us doing. We've got some active pursuits on that right now, and we'll continue to expand that into their re. They've also got a retail account base, which not only for PayiQ is a great footprint, but also obviously broader Microsoft solutions capabilities and beyond that as well. But those are two of the core areas that we've had ongoing discussions and have active pursuits already underway. So this business that's on the IT front, is that gonna be with a different subsidiary at Fulcrum? The one that does not- Yeah, so they have a holding company, and there's kind of two branches of the holding company, I'll call it. One branch is what they have is their IT services groups. They've got businesses in Canada, businesses in the U.K., and businesses in the United States, that are part of that, where our Microsoft partnership will be focused relative to what I just described. And then they've created a second arm of their holding company that is Fulcrum Payment Solutions, as outlined in our press release, which is where the PayiQ business is. And as they do future acquisitions and things like that, it's my understanding that they would have to give you more detail on this, but my understanding from my discussions is they will be doing all of that acquisition activity for the payments related in that arm of the business. So we'll be working with them across both areas. They're a billion-dollar enterprise business, billion-dollar revenue, enterprise business, so they have size and scale in their IT services. They've got some things that they're really unique things they're doing in cyber insurance and other kinds of things. We're actually the development arm for that cyber insurance platform. They've chosen Quisitive to be their software development arm as their, as part of that business. So again, we've had ongoing things with them that this just was a natural extension of that in a different way. That's helpful. Thank you. Thank you. At this time, this concludes the company's question-and-answer session. If your question was not taken, you may contact Quisitive Investor Relations team at quis@gateway-grp.com. I'd now like to turn the call back over to Mr. Reinhart for his closing remarks. Well, thanks, everyone, for joining us today. I want to once again, especially thank all of our employees for all the things that they're doing for us and our business and really helping us navigate through some of the challenges we've had on many fronts, both across our payments business, our PayiQ team, as well as our cloud business. Certainly, all of our partners and investors and customers for their support as we continue to build and grow and scale our business. We certainly appreciate your continued interest and look forward to updating all of you on our next call. Given I may not speak to all of you, hope everybody has a wonderful holiday and look for an exciting new year in 2024. Thanks, and have a great night. Operator? Thank you for joining us today for Quisitive's third quarter 2023 earnings conference call. You may now disconnect.