Good morning, and welcome to the Snipp Interactive Second Quarter 2026 Earnings Conference Call. At this time, all participants are in listen-only mode. Following the company's prepared remarks, we will open the call for questions. Please note that today's call is being recorded. Before we begin, I would like to remind everyone that today's call contains forward-looking statements within the meaning of applicable security laws. These statements are based on management's current expectations and involve risks and uncertainties that could cause actual results to differ materially. For a discussion of these risks, please refer to the company's public filings on SEDAR+ and its investor relations website. The company does not undertake any obligation to update forward-looking statements except as required by law. Today's call also refers to certain non-IFRS measures, including EBITDA, gross margin, free cash flow, and bookings backlog. Reconciliations are provided in the press release and MD&A. Thank you everyone, and good morning. On the call with me is Malcolm Davidson, our interim Chief Financial Officer. I am going to set the frame and talk about the two things that matter most this quarter. Malcolm will then take you through the numbers in detail. I will come back for the outlook, and then we will both take your questions. Let me start where I finished in June. I told you the bookings backlog was the most important number in our Q1 release, and that the $20.6 million we had built was contracted, signed, and on its way into the revenue line over the coming quarters. This is the quarter it started arriving. Revenue in Q2 was $6 million, up 19% sequentially and 25% year-over-year. That is our strongest quarter in five, and I want to be straight with you about the shape of it. The fourth quarter of last year was $5 million. The first quarter of this year was $5 million, and now we are at $6 million. Two quarters at a flow and then a 19% step-up. EBITDA was positive $181,000 against a loss of $1.2 million in the same quarter last year. Net loss narrowed by 89%. Malcolm will take you through how we got here. The number I told you to watch directly because I made it the headline three months ago, and I am not going to walk past it today. Backlog at June 30th was $19.1 million, down from $20.6 million at March 31st. It came down because we recognized it. Last quarter, backlog went up while revenue went down, and I told you that was the fingerprint of the strategy working. This quarter, backlog came down while revenue went up. That is the same fingerprint running the other way. The reservoir filled, and now it is draining into the revenue line exactly as designed. Three things to hold alongside that. The first $19.1 million is still 26% above the $15.2 million we carried a year ago and still more than three times the revenue we recognized in the quarter. Second, this number continues to reflect signed customer contracts only. Not verbal commitments, not letters of intent, not pipeline. We made that disclosure choice deliberately, and I am not going to loosen the definition in a quarter when the number moves slightly against us. Third, deferred revenue went the other way, up again to $7.7 million from $6.9 million at the end of Q1. That is cash clients have already paid us for work we have not yet delivered. If backlog revenue and deferred revenue were all falling together, that would be deterioration. That is not what is happening here. In June, I also told you we were applying AI aggressively across sales, engineering, prototyping, and operations. I also said something specific about how we would report on it, that we would tell you what it was delivering, when we could point to it in the P&L, not before. This is the first quarter I can start to point to it. The productivity gains we have built in engineering and delivery are what made it possible to consolidate our technical delivery footprint. We are shipping more with a smaller team because the team is materially more productive than it was a year ago. Part of that is already in the Q2 cost base, salaries and compensation down 18% year-over-year in a quarter where revenue grew almost 25%. A further set of actions completed at the end of the second quarter and in July, so more of it expected to begin to flow through from the third quarter onward. On sales, AI continues to accelerate the speed and quality of our RFP responses and our live receipt validation demos, particularly around fraud mitigation. These are landing with clients the way they did last quarter. On prototyping, the compression from idea to working prototype continues. Work that used to take weeks takes days. On operations, how we deliver campaigns, process receipts at scale, and manage program life cycle, that is where I expect this to show up next. I am going to hold to what I said in June. I am not putting a dollar figure on AI-driven savings on this call. What I will say is that the direction I described three months ago has begun to appear in the numbers, and that by the end of 2026, I expect Snipp to be a different company measured from the perspective of cost structure, subject to the risks and uncertainties described in our public filings. With those initial comments, let me hand it over to Malcolm. Malcolm, go ahead. Thank you, Atul, and good morning, everyone. Please note that these figures are presented in U.S. dollars. Starting with the second quarter. Revenue for the second quarter was $6 million compared to $4.8 million in Q2 2025, an increase of 24.6%. I would add one piece of context to that number. Q2 of last year was our weakest quarter of 2025, so it is a soft comparative. The sequential progression Atul described, $5 million, $6 million, is a more useful way to look at it. On the other measure, this is our highest revenue quarter since Q1 of 2025. Gross margin was $3.3 million, or 55% of revenue, against 52.1% in Q2 of 2025. Sequentially, the percentage came down from 59.1% in the first quarter, and I want to explain why. Because it is a mix effect rather than a pricing or cost effect. Reward fulfillment is recognized on a gross basis and carries little to no margin. A quarter with heavier fulfillment activity therefore shows a lower margin percentage on higher revenue. Gross margin dollars, which actually funds the business, rose 12% sequentially and 33% year-over-year. For the half, we were at 52.7% against 56.6%. Total operating expenses were $6.2 million, down 3% from $6.4 million, while revenue grew almost 25%. Within that, salaries and compensation was down 18% to $2.5 million, marketing and investor relations down 20%, travel down 58%, and share-based payments down 76%. Campaign infrastructure rose 15% to $2.7 million, which is what we would expect. Those costs move with the number and scale of programs we're running, and we are running more of them. EBITDA was positive at $181,000 compared to an EBITDA loss of $1.2 million a year ago, an improvement of $1.3 million. Net loss was $187,000 against $1.72 million, a reduction of 89% and narrowed 73% from $688,000 loss we reported in the first quarter of this year. Moving on to the first half. For the 6 months, revenue was $11.1 million against $11.2 million, a decrease of 1.5%. That flat headline masks two very different quarters. Q1 down 21% year-over-year, Q2 up 24% or 25%. Gross margin for the half was 57.2% up from 56.6%. Total operating expenses were $11.9 million, down 8% from $12.9 million. Salaries and compensation down 12%, marketing and investor relations down 28%, travel down 50%, campaign infrastructure was down 3%. EBITDA for the half was a loss of $138,000 against a loss of $900,000, an improvement of $765,000. Net loss was $875,000 against $1.88 million, a reduction of 54%. Cash flow from operating activities was positive at $556,000 compared with $525,000 in the first half of last year. Moving on to the balance sheet. We closed the quarter with $6.2 million of cash, up from $3.4 million at year-end. I want to be clear about the composition of that increase, because the headline can mislead. The majority of the net proceeds of CAD 4.5 million senior secured convertible debenture we closed in February, led by Shen Capital. Within the second quarter itself, there was no financing activity and cash was flat to modestly higher at $6.1 million, we reported at March 31. Deferred revenue was $7.7 million, up 42% from year-end, and from $6.9 million at the end of Q1. Working capital deficiency narrowed to $79,000 from $2.2 million at year-end. I would note that $7.7 million of our current liabilities is deferred revenue, which is an obligation to deliver future services rather than to repay cash. On the debentures, they bear interest at 3.45% and mature in February 2029. Total contractual obligations under them are $3 million, of which approximately $170,000 falls due within the next 12 months. With that, I will hand it over to Atul. Thank you. Thank you, Malcolm. Let me give you the forward picture in plain language. The macro has not improved. Tariff-driven budget caution and program timing deferrals are still with us, and client decision-making has not become any easier. The way I described our client base in June is still the right way to understand this business. Clients with long-term recurring loyalty and rebate programs continue to work with our investment, while clients who run against promotion calendars remain conservative about when they spend. We do not control client budgets, and we are not going to forecast our way out of the macro on this call. What we do control, we are executing on. The contracted book is converting, the cost base is smaller, and the AI work is starting to show up in it, with more to come from the third quarter. Deferred revenue is building. Cash is stable. Let me be precise about what one quarter of positive EBITDA is and is not. It is not an inflection, and I would ask you not to model it as one just as yet. Our first half is still an EBITDA loss. First-half revenue is still marginally below last year. Our quarters are lumpy, and they will continue to be lumpy. That is the nature of a business where program timing sits with the client. The inflection that we are targeting is 2027, and nothing I am telling you today changes that date. What Q2 gives you is evidence that the machine works, and when the revenue shows up, we will produce EBITDA. That is worth something. It is not the same thing as a turn. I want to close where I closed in June. The numbers in front of you describe where Snipp has been. The decisions behind them, the multi-year contracts we are signing, the cost base we are reshaping, the AI transformation we are running hard at describe where Snipp is going. In May, those decisions were a plan. In June, they are visible in the bookings backlog and the balance sheet. Today, for the first time, they are visible in EBITDA. Discipline this year, acceleration next year. Thank you, everybody. Happy to take any questions via chat or if you put your hands up, I can unmute you. Our first question comes from Thomas. Thomas, you can go ahead and unmute yourself. Hey, Atul. Good morning. Congrats on the quarter. My first question was, it's good to see growth kind of pick up this quarter. I'm just wondering if there's any specific product or customer category that contributed to that. Honestly not. It's just backlog that clients are signing contracts. Here's the thing about our industry, right? If clients don't spend, they actually lose their own internal budgets for subsequent quarters and years, which they actually need, right? They sign these deals knowing very well that they have to put the programs in the market. This is just an across the board trend that we are seeing, and it doesn't affect any one product group per se. Okay, understood. In the prepared remarks, you mentioned a little bit on the gross margins due to mix. I was just wondering if there's a certain type of mix that's more resonating in this type of volatile macro environment, and where do you see it landing sort of in this year and next year? Yeah. I don't think our margins are any different than they've been across the product or across seasons or across even what the macro does. It's really just converting those deferred revenue contracts to revenue, launching those programs and clients continuing to sign programs with us, right? That's the way I think about this. Our margins are pretty much consistent. The long-term loyalty rebate stuff is pretty high margin. Our promotions business is as high margin if you take out the cost of the incentives that we deliver. That's not really affected by the environment. Unless we are trying to break into a new industry and capture share. We don't really worry about that tremendously. It could be pretty profitable. If you guys model this out to 2027, and if our revenue just ramps even slightly, right? It starts spitting out a fair amount of cash for the business. On that front, you mentioned the cost optimizations of leveraging AI internally. I know you are not giving out any numbers, but if you can just give some color on some of the efficiency gains that you are seeing and where you plan to take it, some of these internal initiatives, that will be great. So, look, the biggest cost item in our entire company, as you can see, is just our salaries and our people. There is only one big efficiency driver here, which is can you use AI and can you build an ecosystem of agents that actually replace people? That is where the efficiency is going to come from. All of our other costs are pretty low. The other big item of cost is obviously what we spend on third-party incentives, but a $5 Walmart gift card is a $5 Walmart gift card. I am not going to save a lot on that, even at massive volumes of purchase. We already get discounts on that stuff, but it is just people. Pretty good. Okay. That is good. Just my last question on the outlook. Still a very volatile environment. Has anything changed from the first half of the year? I think in my closing remarks, that's what I was mentioning, right? The macro is what the macro is, and we can't forecast out of it. There is no clarity about the future. I've been saying this for I think three, four quarters now. I don't see that changing anytime soon. But the good part is what we can execute on, we are executing on. Right? To your previous question about margin, we have a pretty good margin business. It's a matter of scaling the top-line revenue, putting in these productivity gains that we are seeing using technology internally, to drive profitability. Thank you for taking my questions. Yep. No worries. Okay, so we have some questions coming in on the chat. Malcolm, this one's for you. Deferred revenue was a meaningful contributor to operating cash flow this half, and it's now $7.7 million. Could you give us a rough sense of the split between platform and license fees on one side and reward funds on the other side, and how you're thinking about cash flow as the bookings backlog converts? The split, I would have to get back to you a little bit on that one. As far as Let me just think here. Hold on. Okay, so on the cash flow part, the cash has already been received, so there isn't necessarily additional cash flows from certain campaigns. It depends on how they're structured. So that cash is already in the bank, it's in our cash account, and disclosed accordingly on our financial statements. So as we continue to start various campaigns, we'll recognize the related revenue, and the deferred revenue number will come down. Right. Our deferred revenue goes up when we actually receive cash, so yeah. Get that all up front. It's good to get paid upfront. Yeah. The second question was, capitalized intangibles stepped up quite a bit in the first half. Could you help me understand how much of that is engineering time and where you'd expect that line to run in the second half? Let me take that, and Malcolm, you can add to it if you want. All of that is basically engineering time and product teams time. It's all R&D. My preference has always been to expense out everything, but our auditors insisted many years back that we have to take a portion of our development and capitalize it because it is considered R&D because we get to reuse it. It's a platform, right? We keep adding to the platform. Where do you expect that line to run in the second half? I think it should be pretty consistent for the rest of the year. Malcolm? Yeah, no, I think that's a very accurate comment. It will be consistent throughout the rest of 2026. As we adopt more AI and we look at these capitalized costs as less of R&D type costs, I think we'll actually start to see that number come down. Right. The last question was, how should we think about the pace of new bookings from here? Look, I think from a bookings backlog perspective, we obviously are spending a lot of time and focus on the revenue side of the equation, to ramp our business. We've been looking at new markets. We've been looking at trying to expand our share of wallet with existing clients. I think for the rest of this year, I would say that if we can keep our backlog where it is, in this range, I think we'd be very happy to end the year on the same level. That's my outlook for the new bookings. Okay, another question came in right now, from JD. Okay, I'm going to just read it out. You have referred several times to 2027 as an inflection point for the company. Could you clarify what specifically you mean by inflection? Are you referring primarily to sustained positive EBITDA and profitability, an acceleration in revenue growth, or both? What are the key milestones investors should watch over the next several quarters to determine whether SNIPF is on track to reach that inflection? Good question. What is an inflection, right? I think if you look back at all of our conference calls, what we've been trying to build here is a profitably growing business, right? Not growth at the cost of losing capital. I would stay with that. To summarize it, inflection for me is sustained profitable growth. I just leave it at that. I hope that answers the question. Any other questions? I don't see any hands up or people in the chat asking. Thank you, everybody. If you do have any questions, feel free to reach out. We are always available. You can call me, text me, or send us an email, or go to our website and send in a request. Thanks, everybody. We'll talk to you next quarter. Thanks, everyone. Have a good day. Bye-bye.