Welcome to the Taiga Motors Corporation's First Quarter 2022 Results Conference Call. As a reminder, all participants are in listen-only mode and the conference is being recorded. Following the presentation, we will conduct a question and answer session, followed by an additional cautionary statement before we conclude the call. To ask a question, please press star, then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and zero. I would now turn the conference over to Shahroz Hussain, Director of Investor Relations with Taiga Motors. Please go ahead. Thank you, Charisse. Good morning, everyone, and thank you for joining us. I'm here today with our Chief Executive Officer, Sam Bruneau, and our Chief Financial Officer, Eric Bussières. Today's discussion will include estimates and other forward-looking information from which our actual results could differ. Please review the cautionary language in today's earnings report, MD&A, and in our 2021 annual information form regarding the various factors, assumptions, and risks that could cause our results to differ. With that, let me turn over to Sam to begin. Good morning, everyone, and thank you for joining us today for our first quarter 2022 results call. The first quarter was a landmark quarter for us at Taiga. The past six years of numerous prototypes, business plan iterations, and manufacturing strategy fine-tuning culminated in the very first sale of a Taiga vehicle this quarter. Setting out to electrify one of the most challenging vehicles in this segment is no small feat, but crucial in developing the snowmobile of the future. The delivery of our Nomad snowmobile is a realization of a vision to provide riders an electric snowmobile that does not compromise on performance while preserving the environment. Our customers are now able to experience firsthand the revolutionary technology and cutting-edge design that makes Taiga a sustainable alternative without compromising performance. We are just getting started in pushing the boundaries of what our technology can do and are laser-focused on ramping up snowmobile and personal watercraft deliveries. I'm extremely proud and thankful to our team for their dedication in getting our product to the market. With delivery started, the team focused on operationalizing the foundation of the Taiga production system, which includes progressing vertically integrated manufacturing, modular platform architectures, focused automation, and intelligent connectivity driving continuous improvements, to name a few. All of which, along with our main manufacturing approach, will support an accelerated and agile ramp-up throughout the year on both our snowmobile and PWC platforms. Notably, during the quarter, we initiated the first stage of our automated battery assembly line and expect it to ramp up in line with our production plan for 2022. On March 18, we initiated deliveries in Vermont, U.S.A. to both commercial fleet operators and recreational customers, totaling seven Nomad units delivered in the following 10 days before the end of the quarter. Following the quarter end, we expanded deliveries to Canada and debuted our product in Sweden at SkiStar, the leading operator in Alpine mountain tourism in Scandinavia. In total, our initial snowmobile run yielded 28 sellable units as at May 13, 2022. Given our deliveries over the past couple of months, the feedback we just received is overwhelmingly positive. Our customers love our products. We've had commercial operators express their satisfaction with the Nomad's performance and have commented on Taiga's key role in decarbonizing their operations. Recreational customers were quick to send us photos and stories of their sustainable adventures with our vehicles. Overall, we're incredibly proud to see our snowmobiles out in the wild in harmony with nature. Our products are truly revolutionizing the powersport industry. As a testament to our mission, Taiga was named overall North American winner in Fast Company’s 2022 World Changing Ideas on May third. Taiga's electric off-road performance powertrain is featured alongside a list of esteemed global companies. This prestigious award further validates our mission and serves as evidence of the progress we've made towards changing how people connect with the natural world. We expect to build upon the positive momentum we have gained in Q1 for the rest of the year. For 2022, we continue to be focused on our three priorities, ramping up production and deliveries globally, building a culture of high performance, and increasing our brand awareness. I'll touch on each of these priorities briefly. On production and delivery, we've now completed our limited snowmobile production run. During Q1, we were focused on attaining the required certifications and began streamlining our manufacturing processes, allowing us to ramp up production. Key learnings on the snowmobile line are transferable to the Orca, our personal watercraft platform. Q1 has set us up to propel production for the upcoming Orca and the following snowmobile production runs. Orca deliveries are expected to begin early summer. To get our products to market, we will continue to employ our four-pillar approach. The first two pillars are the core of our business. They are, first, direct sales of our snowmobiles and PWCs to recreational customers. Second, sales of our vehicles to fleet operators such as ski resorts, tour operators, and commercial fleets in multiple industries. The third pillar revolves around supplying our modular powertrain assemblies to OEMs in adjacent industries. Our multi-generation powertrain is a modular hardware and software platform that is designed to simplify production and decrease development time for both Taiga and our OEM partners. Lastly, our fourth pillar involves aftermarket sales of parts, upgrades, apparel, and other accessories. As I mentioned earlier this year, supply chain continues to be a major pressure point in the industry. While we've worked diligently to reduce its impact for 2022, it remains a real limiting factor in our ability to produce, and we continue to expect supply chain disruptions to persist for the remainder of 2022. Our teams are crucial in Taiga's success. Throughout the last 12 months, we've also focused on building a great team and prioritizing developing a high performance culture. We've grown from a team of 54 at the end of 2020 to over 210 full-time employees as of today, and each one of our team members is vital to our mission. As we develop that strength, we've been conscious of the culture we're establishing at Taiga. In short, we're staying true to our roots and fostering a culture that rewards innovation and nurtures creativity. We've also been attracting talent that's vested in electrifying off-road vehicles, and as such, we believe we have built one of the largest and deepest teams of engineers working on EVs in the off-road segments. This is a key advantage for Taiga going forward. Being a pure electric company has its benefits for Taiga's brand awareness. Our electric-only brand matters when our customers select our products, and it shows in the pre-orders achieved. During the first quarter, we continued to see healthy pre-order levels across the globe for our products, the personal watercraft and the snowmobile. As of March 31st, 2022, Taiga has received 2,886 snowmobile and PWC pre-orders from recreational customers and fleet operators, a 22% increase from the order book on December 31st, 2021. Our deliveries to date have largely been direct deliveries to customers. Starting with the Orca, we'll begin deploying our hybrid to direct customer model and expand deliveries through our dealer partner network. We continue to maintain strong interest in applications from dealers to become delivery partners, and in the first quarter, we recorded a 7% sequential increase in dealer applications to provide customer deliveries and post-sale servicing, bringing the total number of applicants to 1,844. We now expect to accelerate the dealer onboarding process this summer as we prepare to ramp up the Orca. We continue to work diligently to ensure we select the optimal locations to service our customers and provide them with experience that's tailored to their needs. Our pre-order performance was achieved with limited marketing and it's proof of the demand we're seeing. For the remainder of 2022, as we ramp up production, we'll also be doubling down on increasing brand awareness by offering more demos to current and prospective customers as well as media. In March, we spent time in the U.S. giving top-tier media and social influencers the chance to experience the Nomad snowmobile. This initiative culminated with a bespoke event with the governor of Vermont praising our snowmobiles and the need for electrification. I'm incredibly proud of where Taiga is today. All this would certainly not be possible without our esteemed team who embody our mission. Each Taigan has left an invaluable mark on our vehicles. Again, we look forward to revolutionizing the powersport industry, and thank you for joining us on this journey. With that, I'd like to turn over our call to our CFO, Eric Bussières, to go over our financials for the quarter. Thank you, Sam Bruneau, and thank you everyone for joining us today. In Q1, Taiga made its first delivery, and as a result, we reported our initial revenue of $141,000. The revenue comprised of seven units delivered in the last 10 days of the first quarter. First quarter marks a pivotal moment where Taiga shifted from an R&D company to a revenue-generating manufacturing company. Let me take you through our expense line items for the first quarter of 2022. R&D expense were CAD 1.4 million in the first quarter of 2022 compared to CAD 1.2 million in the prior year first quarter. The 14% increase in R&D expenses were largely attributable to the increase in the number of employees dedicated to the R&D, while the majority of the development spend was included in development costs eligible for capitalization as intangible assets. During the three-month period, CAD 3.7 million were capitalized as development costs relating to the snowmobile and the watercraft. As a result of our investment in R&D, we now accumulated intangible assets worth CAD 11.7 million as of March 31, 2022. G&A expense increased to CAD 4.8 million during the first quarter of 2022 compared to CAD 2.5 million in the prior year first quarter. The 91% increase is due to the increase in the number of employees for administrative purposes and includes increase in insurance costs as well as listing and professional fees, partly related to the company becoming public. Also worth noting, in Q1 2022, approximately CAD 800 thousand was reallocated to cost of sales from G&A compared to Q4 2021 since we began production. During the first quarter, our workforce grew 16% to 216 full-time employees. We expect future hiring to be largely related to manufacturing, procurement, logistics, and engineering as we ramp up our production. Sales and marketing expenses were CAD 1 million for the first quarter of 2022 compared to about CAD 551 thousand in the prior year first quarter. The 84% increase is due to the increase in the number of employees required to direct sales strategy. Taiga is also aggressively increasing its digital marketing initiatives, and we have upgraded our corporate website to facilitate more streamlined and robust e-commerce capabilities. Our loss before other expenses was CAD 9.2 million in the first quarter of 2022, compared to CAD 4.3 million in the first quarter in the prior year. The increase in the loss before other expenses were primarily related to the increase in expense, as I just mentioned. As of March 31, 2022, the company had approximately CAD 71.1 million in cash and cash equivalent compared to CAD 86.7 million at December 31, 2021. During the first quarter, the team focused setting up process to ramp up production for the year on both snowmobile and the personal watercraft platform. The team secured an additional CAD 2 million in inventory due to work in progress relating to the first snowmobile while building inventory for the Orca production run this summer. Inventory totaled CAD 22 million as of March 31, 2022. During the first quarter, we invested CAD 1.7 million in capital expenditure, which included the purchase of manufacturing equipment, tooling, and R&D equipment. For Q2, we expect a higher cash use compared to Q1 due to the production of the snowmobile and the start of the ramp-up for the Orca. For 2022, we continue to face supply chain disruption despite having secured chips for 1,000 units. However, production continued to be constrained by other factors, including the availability of raw materials and other components, manufacturing process optimization, and equally important, volume-related cost efficiencies. For 2023, Taiga has already strategically procured certain long-term components in line with its expected production ramp-up. On manufacturing process optimization, we're ramping up gradually and learning from our experiences as we continue to scale and implement our production process. On the cost front, we expect the cost per unit to start gradually improving later in the second half of 2022 as we ramp up production. Given these factors, we expect limited production in the first half of the year and ramping up in the second half of the year, building momentum as we head into 2023. We continue to be focused on setting up the foundation for us to scale efficiently and effectively. In conclusion, we're being prudent with our capital resources, and we'll continue to diligently and strategically invest for the future. I now ask the operator to open the call for any questions. Operator? Thank you. We will now begin the question-and-answer session. To join the question queue, you may press star then one on your telephone keypad. You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then two. We will pause for a moment as callers join the queue. The first question comes from Derek Dley with Canaccord Genuity. Please go ahead. Yeah. Hi, guys. Congrats on the first sales of the products here. When we think about the Orca production, actually the Orca sales, can you just comment on perhaps the split between dealer and sort of recreational customers? Or compare it to that of the Nomad. Like, do you get more dealer sales with the PWC, or do you get more dealer sales with the snowmobile? If we're looking at the breakdown between kinda commercial fleet sales and recreational orders, there's significantly more commercial fleets on the snowmobile side. The PWCs are majority recreational buyers. Okay, great. That's helpful. How does the PWC production work? Is it on the same line, for example, as the snowmobiles? Like, do you stop making snowmobiles and ship to PWC, or does it happen concurrently? For this year, we're doing one at a time for a really kind of focused ramp up. It is the same powertrain line, so the same automated battery line that came on for the snowmobile is going to be run for the personal watercraft as well, same for the electronics and motor Tractive Unit components. The vehicle lines use several of the same stations, but we're only running one at a time for 2022. Okay. Last one for me, just in terms of the cash position at CAD 71 and then just your comment that there's gonna be a bit more of a cash usage here in Q2. Are you comfortable with that position to fund you through your growth initiatives? Yeah. No. For the ramp-up of this year, I think we're quite within the guidelines that we had set up internally. Obviously the ramp-up is you would expect additional cash burn when you're ramping up the operations and starting to build a bit of inventory in the supply chain and then your working process. You'll see some consumption of cash in Q2, but I think things will start to stabilize in Q3 with the ramp-up of the sales itself. Okay. Thank you very much. Thank you. Once again, if you have a question, please press star then one. The next question comes from Cameron Doerksen with National Bank Financial. Please go ahead. Thanks very much. Good morning. Just wanna come back to, I guess, the production kinda plans here. You mentioned personal watercraft kinda starting up early summer. I mean, how long is that production run going to go? When do you, I guess, shift back to snowmobiles in the fall? We're currently in the process of setting up the production line and kind of pre-production units on the watercraft already. We're targeting deliveries to begin early summer, but we're already ramping up the processes on the personal watercraft, and we'd expect to continue that production across the summer and maybe into early fall, depending on units and snowmobile timelines. We're looking at 3 months-4 months of personal watercraft production and then switching over to the snowmobile to be ramping up for the winter timeframe. Okay. Then, I guess presumably you'll sort of refine the production process with the PWC during that 3 months-4 month kind of production run. Is it safe to say that once we get back to snowmobile production, at some point in the fall that you'll be able to have a, I guess, a production run rate that's meaningfully higher than what you did in kind of the early production year? Just kind of give me some sense on what kind of volumes you might be able to do in kind of the latter part of the year. Yeah, definitely. I think with the snowmobile this year, it was the first production unit, so we started a bit later in the season as we were working through the certification and we had a bit of a smaller run rate and that will be ramping up significantly across the personal watercraft production for this summer and into the snowmobile production for next winter. Okay. Just on the cost of sales, I'm just trying to get a sense of that, the number in Q1. I mean, you only delivered 7 snowmobiles, but there was, I don't know, fairly huge cost of sales associated with those. Was there, I guess, some one-time items. I think you mentioned one that's sort of CAD 800,000 that might've been reallocated from G&A, but I just wanna get a sense of what kind of the run rate of cost of sales kind of per unit is gonna be here, 'cause it seemed like a little unusually high number in Q1. Yeah, no, clearly Q1 was higher than you would expect. Having said that, when you're ramping up, there's all sorts of things that you find out, but you also have. Bear in mind, we have some overheads where the overhead absorption is not where it needs to be at this point because we don't have the volume, right? That plays into the equation. In terms of somewhat more unusual items, I would say there's probably CAD half a million of things that you could remove that would consider more unusual than regular. The other factor that we found out, as we all know, freight costs are certainly on the higher side than we would have expected when we started this, right? That gives you a bit of an idea. I do believe that as we kind of ramp up volume, you will see a much better overhead absorptions, right? That should help. Okay. Maybe just final question from me. I mean, you mentioned one of the focuses for this year is to increase brand awareness. I guess what should we expect on the kind of sales and marketing front? I guess both from just what kind of efforts are you going to be making on that front? And what kind of spend would you expect on sales and marketing to look like, for the remainder of the year? Yeah, I think on overall spend, it'll be more from an operational side, as was mentioned by Eric, as we ramp up deliveries into higher volume of units, so just the manpower to do that. On the marketing front, we're looking at expanding our Ride the Current Tour on the personal watercraft as we're ramping up deliveries and have more demo units available. That's where we've seen really great success, is getting people on these vehicles, experience them. We have very high conversion rates behind that and really amping up our media presence. We saw some of the success behind that in the tail end of the winter here with the snowmobile, and we're gonna be kind of hitting the ground running in the summertime with the personal watercraft, with larger influencer and top-tier media publications. I think to help you a little bit on Q2, Q3, I would expect an increase compared to Q1 of 25%-50% on sales and marketing efforts just because we're gonna do more demos and the likes. Okay. It's really more driven by, I guess, the actual sales that's driving that line item higher. Well, it's the sales. It's also what I would call the activity that we do pre-sales, right? When we do demos and the like. That means we're having a group of Taiga employees going to make those demos and presenting the product in certain locations, right? That goes directly in our sales and marketing expense line. Okay. That's helpful. All right, that was all my questions. Thanks very much. Thank you, Cameron Doerksen. As there are no further questions, this concludes the question and answer session. I would like to turn the conference back over to Samuel Bruneau for any closing remarks. Thank you all once again for joining us for our Q1 results call this morning. We're excited for what's ahead at Taiga and look forward to seeing you out on the water this summer. Before we conclude today's call, I would like to provide Taiga's Safe Harbor statement that includes important cautions regarding forward-looking statements made during this call. This call may contain forward-looking information within the meaning of applicable securities laws. Although the corporation believes that the expectations and assumptions on which this forward-looking information is based are reasonable under the current circumstances, listeners are cautioned not to rely unduly on this forward-looking information, as no assurance can be given that it will prove to be correct. Forward-looking information contained herein is made as of the date of this call, and the corporation does not undertake any obligation to update or revise any forward-looking information, whether as a result of events or circumstances occurring after the date hereof, unless so required by law. Please refer to the Forward-Looking Statements section of our latest MD&A for more information and the Risk Factors section in our 2021 Annual Information Form. Thank you for joining us today for Taiga's first quarter 2022 results conference call. You may now disconnect.