Welcome to the Taiga Motors Corporation's First Quarter 2023 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 Q&A session, followed by an additional cautionary statement before we conclude the call. To ask a question, please press Star and 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 like to 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 and Co-founder, Samuel Bruneau, and our Chief Financial Officer, Eric Bussières. Today's discussions will include estimates and other forward-looking information that may vary from our actual results. Please review the cautionary language in today's earnings report, MD&A, and in our 2022 Annual Information Form regarding the various factors, assumptions and risks that could cause our actual results to differ. With that, let me turn it over to Sam to begin. Thank you. Good morning, everyone, and thank you for joining us today for our first quarter 2023 results call. Last year, in 2022, we established a foundation to scale the business. From Taiga service providers to carry out deliveries, to building out a vast supply chain that can scale with our demand, to factory layouts that were developed for efficiency and a redesigned snowmobile platform that allowed multiple production improvements. The result of our intense efforts over the past year are starting to become tangible. For example, as of last Friday, May 12, 2023, we have produced 222 vehicles year to date, which is a significant improvement when compared to the 133 units produced in all of April 2022, sorry, in all of 2022. In April, we produced over 100 vehicles in a month for the first time and aim to continue building on that momentum throughout the second quarter. Our production is ramping up. Credit goes to our teams that have ensured we have all the right resources at the right place for us to scale up this pace. There's more to come. We remain optimistic with a clear view of what's ahead for Taiga. During the first quarter of 2023, we produced 96 vehicles and delivered 59 in Canada and the United States. While we did encounter some supply chain challenges and part shortages for a few key components, the overall supply chain is largely stabilizing, especially as we move to onboard larger volume suppliers. With these suppliers coming online, we expect our production volume to scale with greater visibility and reliability. We are emerging as a stronger and more agile company as we go through the process. I'll elaborate on our production outlook and schedule for the year later. First, I'd like to provide an update on our financing. As you recall, we announced a private placement of $40.15 million of convertible bonds on March 17th. The terms and conditions of the issuance allowed for additional capital to be raised by April 27th. The two investors, Northern Private Capital and Investissement Québec, were able to raise an additional $6.6 million, totaling $46.75 million effectively raised under the private placements. The fact that we received additional interest to invest in Taiga is encouraging, especially in the current market environment, and is further evidence of Taiga's business plan and the opportunity we have to transform powersports with our award-winning electric snowmobile and personal watercrafts. These additional funds help de-risk our 2023 production plan and position us well to build and service the next generation of high-tech off-road vehicles. As part of the private placement on March 30, 2023, four directors were replaced on our board. The new directors bring with them solid experience in scaling a business along with expertise in automotive manufacturing, and we look forward to working with them in advancing Taiga. For our customers, the capital injection means we now have the support of two valued investors that are enabling and furthering our mission of electrifying powersports and delivering vehicles. All of us at Taiga are laser-focused on ensuring we ramp up our production and deliver to our reservation holders. Nothing makes us prouder than seeing our products in the hands of our customers and exploring the great outdoors without compromise. We are sparing no effort in advancing our capabilities to scale and push through the initial growing pains of scaling production, and we are starting to see positive results. I've said this before, there's nothing easy about building industry-first products. Taiga's vertically integrated approach to design, engineering and manufacturing is technologically complex and requires a herculean effort from all sides of the business working in unison to scale. Though the initial climb is steep, it is setting us up with a large advantage against the competition in the future. We are proud of what we've accomplished, especially as a young company that's forging a path towards sustainable powersports with the first ever mass manufactured off-road electric vehicles. We're continuously pushing engineering boundaries to further electrification. Our engineers have utilized real-world data from our connected snowmobile fleets and have worked to improve of the Nomad even further. Last year, we worked to increase the snowmobile's manufacturing efficiency through greater use of integrated parts. This quarter, we got to put our new platform's manufacturability to the test, and I'm happy to report that we're seeing significant improvements in scalability with this new snowmobile model. As I mentioned earlier, we produced 179 Nomads in the past month, which is a material increase in our production momentum. We expect to carry this momentum into Orca Carbon and Orca Performance production runs. This momentum is supported by our three core strategic priorities in 2023 as we accelerate off-road electrification. Our first priority is ramping up production. Second, we're focused on establishing a world-class customer experience. Finally, furthering our technology advantage in off-road electrification. I'll touch on each of these priorities briefly. On production volume ramp-up, in 2023, we're intensely focused on ramping up our production. We understand that transforming a prototype to a mass-produced vehicle is no small task. It involves multiple teams and suppliers working in full synchronization, and that's what we've been building over the past year. We've invested deeply in our supply chain, manufacturing capabilities, and inventory in order to de-risk the full manufacturing process. We've optimized our factory production lines for increased efficiency, we've taken a closer look at our production plan to extract further marginal cost efficiencies, and redesigned vehicles that are more efficient to mass produce. An example of this is the new snowmobile platform I just mentioned. By completing our snowmobile production run of winter 2023, we completed our first step of our 2023 production plan. We're maintaining our 2023 guidance of delivering 1,700 to 1,900 vehicles in the year. We're now hitting our targeted weekly production rates and expect quarterly output to continue increasing throughout the year. In terms of the production schedule, as mentioned before, the model year 2023 Nomad snowmobile production ended recently, and we're about to restart producing the limited edition Orca Carbon, which will continue till mid-year and pave the way for the high-volume Orca Performance. We're looking forward to mass producing the Orca Performance, which has been more than two years in the making. The 2024 snowmobile build will start late fall in time for the 2023, 2024 winter season. On establishing a world-class customer experience, our customers are at the core of our mission, customers that have placed their trust in our products and are eagerly awaiting for their vehicle delivery. In 2023, we're focusing more deeply on providing an overall great ownership experience at every touchpoint. That includes product quality and performance, as well as efficient delivery and after-sales support via our expanding TSP network. Being a purely EV company has its benefits for Taiga's brand awareness. Our electric-only brand matters when our customers search for more sustainable options and select our products. It shows in the pre-orders achieved. During the first quarter, our pre-orders remained stable above the 3,000 mark. We recorded 3,185 net pre-orders as of March 31, 2023. Given our increased focus on delivering the units to existing reservation holders, we will manage our pre-order book more proactively going forward and maintain a level of orders, including sales pipeline, that's more aligned with planned production. Deliveries to our customers are a large component of our success. Our hybrid direct-to-consumer delivery model is the first of its kind in the industry. We've worked extremely hard to ensure we have the right Taiga service providers in place as we begin to scale. We officially launched the program in Q3 of 2022. At the end of Q1 of 2023, we had 14 TSPs across 18 locations, including two new markets, British Columbia and Texas. These service providers are the first of many, and they'll be instrumental as we scale PWC and snowmobile deliveries in 2023. We're focused on diligently working to ensure TSPs are fully equipped and supported to deliver our vehicles to our end customers and service them if needed. TSP applications continue seeing strong interest. We now have over 2,000 applicants. However, we're rolling out the TSP program in a structured manner and will continue to select the optimal locations and providers to service our customers. On furthering our technology advantage in off-road electrification, Taiga continues to hold a significant tech advantage in powersport electrification. We're on a mission to revolutionize the powersports industry and will continue to innovate. We've made a number of tech advancements that we are applying to releases across 2023 and 2024 model years. Some of these include Over-the-Air updates to improve our vehicles' charging capabilities, advancing our proprietary integrated powertrain, and numerous other projects that are pushing the limits of what was previously achievable in powersports. We're also pushing the boundaries of EVs off-road. As an example, we completed a 330-kilometer ride in a single day on the Nomad snowmobile, demonstrating our DC fast charging capabilities in real environments by utilizing existing charging stations on public trail networks in Quebec. To our knowledge, this is the longest real-world distance covered by an electric snowmobile in a single day. As I previously mentioned, we're also beginning the production of Orca Performance this summer. The Orca Performance features a unique plastic composite hull, hydrodynamically engineered in-house, achieving leading dynamic performance efficiency, all the while using automated high-volume manufacturing processes. The Orca Carbon has paved the way as the ultimate premium personal watercraft, enabling Taiga to introduce the Orca Performance at a higher unit volumes, lower unit prices to accelerate the transition to sustainable boating. As another testament to our commitment to advancing the technology frontier in powersports, we believe we have built one of the largest dedicated teams of engineers in this segment. We are equally a tech company to invest in R&D as we are a powersports manufacturing company. The combination of the two allows us to establish and maintain our competitive edge. That is part of our DNA and our mission to revolutionize powersports and change how people interact with the great outdoors. The first quarter and the ensuing few weeks have solidified our belief and our capability to scale at Taiga. We've aligned high-volume suppliers and invested in tooling and manufacturing equipment as we prepare to further ramp up our production. We've secured funding and have an experienced board to leverage. We're beginning to prove that we can scale the business, but we're not done yet and are looking forward to a strong 2023 and beyond. All of this wouldn't be possible without the team of Taigans that have worked hard relentlessly over the years across long days and nights to build our foundations. They truly embody our mission and are crucial to Taiga's success. Together, we look forward to revolutionizing the powersports industry. Thank you for joining us on this journey. With that, I'd like to turn the call over to our CFO, Eric Bussières, to go over our financials for the quarter. Thank you, Sam, and thank you everyone for joining us today. The first quarter was another revenue growth quarter for Taiga, as we have continued to demonstrate material sequential revenue growth. We continued the delivery of the Orca Carbon and transitioned to the Nomad snowmobile, accumulating the sales of 59 vehicles during the quarter. As a result, reported revenue of $1.7 million, a 27% increase sequentially. For the first quarter of 2023, we reported cost of sales of $5.8 million. We expect our total cost of sales to increase as we increase volume. However, the expected average cost of sales per vehicle should decline progressively throughout the year. The gross margin also demonstrated improvement as we continue to ramp up production and move to a more cost-efficient vehicle platform. For the quarter, gross loss was $4.1 million. It related to our operating expenses during the quarter, R&D expenses were $3.9 million in the first quarter of 2023 compared to $1.4 million in the prior year fiscal quarter. The $2.5 million increase is attributable primarily to the decreased capitalization of the R&D expense that we stopped capitalizing at the end of the second quarter 2022. G&A expenses of $5 million during the first quarter of 2023 were essentially flat compared to the $4.9 million in the prior year quarter. During the first quarter, our workforce grew 3% sequentially to 276 full-time employees, largely driven by our planned production ramp up preparation. Sales and marketing expenses were essentially flat at $1 million for the first quarter of 2023 compared to the prior year first quarter. Our loss before other expenses was $14 million in the first quarter of 2023 compared to $9.2 million in the prior year first quarter. The increase in the loss before other expenses was primarily related to the increase in our cost of sales expense and the increase in R&D expense, as mentioned earlier. As of March 31st, 2023, the company had approximately $40.5 million in cash and cash equivalents. Our reported cash position included the $40.15 million private placement, which closed on March 24, where the company realized net proceeds of approximately $36 million after payment of transaction-related costs and expenses. Moving on to inventory. We ended the first quarter of 2023 with $24 million in inventory. As you recall, we took a non-cash charge of $7.6 million at the end of 2022, tied to the net realizable value that reduced the carrying value of inventory to $20.8 million as of December 31st, 2022. The increase in inventory during the first quarter is associated with the snowmobile build, which we only recently concluded. In the first quarter, we invested $1.6 million in capital expenditures, which includes some of the purchases for tooling and manufacturing equipment that are required for the upcoming Orca and snowmobile model and to a lesser extent, some R&D equipment. We're currently investing in molds as we prepare for the Orca Performance build, which will be a high volume build. Our total CapEx for 2023 is expected to be approximately $14 million, and 75%-85% of which will occur in the second and third quarter as we invest in the mold and tooling for increased production. Additional color of our planned CapEx of 2023, approximately 65% will be associated with the molds and tooling, and approximately 25% will be associated with the manufacturing equipment, including an additional battery line. As Sam mentioned earlier, we have secured an additional $6.6 million from the private placement. The total of $46.75 million in funding enable us to carry our momentum we've built over the past few months and deliver our 2020 plan with great confidence. I will conclude in stating that we remain prudent with our capital and will continue to invest diligently and strategically for the next generation of off-road vehicle, true to the Taiga mission. Thank you. Now I'll ask the operator to open the call for any questions. 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. The first question comes from Derek Dley with Canaccord Genuity. Please go ahead. Hi, guys. Can you just talk about your quarter-by-quarter ramp of production? Looks like April and the early part of May was really strong. How should we think about it over the balance of the year as you get to your 1,700-1,900 unit target? Well, as we stated, right, it's a progressive ramp up. Clearly the second half of the year, we'll see a much more sizable numbers of units produced, and the cadence is increasing. We're quite happy with what we've done on the snowmobile because it demonstrated our ability to scale within a relatively short period of time. In Q2, we're also transitioning away from the snowmobile to the Orca Carbon. Early in Q3, we'll be starting the production towards the Orca Performance. The ramp up will continue that way, on a sequential basis. Okay. Then when you What is the timing between, you know, given you've got this strong order book that's been pretty stable, you know, from the time you produce these units to the time you sell them or recognize revenue, is that relatively quick, or are a lot of these units kind of spoken for? How does that work? Yeah, look, a significant portion of the expected production of 2023 is spoken for. I mean, well, we have incremental sales, and we believe that as we deliver the sales, that the order intake will continue to increase accordingly. I think it's fair to say that most of the production of 2023 is spoken for. just on your liquidity. I see you got $36 million of proceeds from the convertible convertible funding round plus another $6 million coming in. Given the CapEx is really gonna kick in in Q2 and Q3, you know, how do you feel about your liquidity position, you know, over the next, call it 18 to 24 months? Yeah. A couple of remarks if you want. Some of this is timing related. We have invested, for instance, in Q3 and Q4 2022 on some of those modes by making payments or prepayments of some of those. In terms of realization on the balance sheet, there's a timing element there because they're subject to other milestone payments. It's not necessarily all cash on cash during the year. The other element that should bear in mind is we are generating revenue and we expect to generate revenue out of our order intake during the year, which is not insignificant dollar amounts that are coming in, which bolster in reality the liquidity of the company by transforming our inventory into cash. As we all said, and we all realize that we're actually, pretty heavy on the inventory compared to low volume production. We will optimize inventory in 2023 and early part of 2024. Based on those elements and the confidence we have in our production, we feel that our liquidity will be adequate, over the next 12 to 18 months. Okay, great. 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. Yeah, thanks. Good morning. Just going back to the production ramp. I guess maybe can you just talk maybe a little bit about what are the sort of the key risks here? I mean, you mentioned that the supply chain is stabilizing and you're getting more confidence there. I guess what I guess maybe what concerns you the most as you look to a fairly steep production ramp in the second half of the year? Hi, Cameron. Yeah, I think we're feeling fairly confident with the recently achieved baseline on production rates. We've, we've done, I think, the big jump over the last few months from, you know, more unitary production to a higher number, you know, going over 100 per month now, giving us like a pretty stable baseline and a pretty good way to project our takt time and throughput rates on the line. We feel like we have the production line capacity installed actually today to be able to achieve the full projection of 1,700-1,900 units. Now it's really a question of ensuring we have the supply of parts on time and on quality, and we've been dedicated a large company efforts on this over the past 12 months to really build a much more robust supply chain. Of course, there's always a risk factor when it comes to supply chain and timing of components, but we feel we've taken all the right steps to be able to de-risk it as much as possible. Okay. Just wondering about the, I guess, the lag between build and delivery. Y ou delivered, you know, 59 units, but built more than that in Q1. Just maybe just explain, you know, why there's a lag there, why, I guess units aren't kind of immediately built and then delivered. Well, I mean, just delivery-wise, right? Think about if the unit comes in line on the Friday, you should count about a week before it actually makes its way to the actual customer and take delivery. In some cases, the customer may or may not be ready to have delivery on that day. Those type of things happen. We, we believe that it's sort of a two-week time cycle between the time the unit is produced and the actual unit may find its way into the hand of the customer. Remember that we only recognize the revenue when the asset has been sold and the full amount has been paid, right, from the retail side of our customer base. Those are important critical elements and the paperwork and the actual physical delivery of the vehicle. Okay. No, that makes sense. maybe just this final question on sales and marketing. you obviously you haven't needed to spend a whole lot of money there so far, you know, but, you know, you've had some pretty good pre-orders you mentioned that's going to satisfy the production needs for 2023. as we look ahead beyond this year, what sort of investment do you need to make in kind of your sales and marketing efforts in order to g et the order activity such that it's gonna support a ramp in deliveries beyond 2023? Yep. Our primary investment is really towards increasing customer support to really bolster an amazing customer experience. We feel we're gonna be able to gain significant organic order growth through referrals and installing some referral programs on the products. As we scale production and deliver thousands of units, it tends to generate strong orders from people around those receiving the vehicles. Beyond that, we're implementing a few more ambassador programs alongside the snowmobile and watercraft platform that will help expand Taiga's reach. Okay. H ow will those, I guess sort of, is that something that you'll see, you know, this year or is that more kinda 2024 when you'll be, I guess, expanding some of those ambassador programs and other outreach programs? Yeah, we'll start seeing some, in Q3, the first iteration being established and expanding as we scale production and introduce the watercraft and snowmobiles into new markets. Okay. Okay, no, that's great. That, that was all for me. Thanks very much. Yep. Thank you. 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. Thank you once again for joining us for our Q1 results call this morning. We're excited for what's ahead for Taiga and look forward to seeing you out on the water and the winter trails. 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 at the date of this call. 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 2022 Annual Information Form. Thank you for joining us today for Taiga's First Quarter 2023 Results Conference Call. You may now disconnect.