Welcome to Taiga Motors Corporation's second 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 question-and-answer session for analysts, 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, then 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, Ariel. Good morning, everyone, and thank you for joining us. I'm here today with our Chief Executive Officer and Co-founder, 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 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. Good morning, everyone. Thank you for joining us today for our second quarter 2023 results call. This was another quarter of us ramping up our production, and more importantly, we were able to showcase what we're capable of achieving, given the success we had with our snowmobile deliveries. Additionally, over the quarter, we continued to work hard on rolling out our Taiga Service Provider Network, which as of today, covers the top ten top key markets in Canada and the U.S. We are adding another automated battery assembly line at the Montreal facility. We've initiated a supply chain that can scale with our demand and have proven ourselves with the redesigned snowmobile, which allows better manufacturability and has yielded over 100 vehicles produced in a single month for the first time at Taiga. The results of our intense efforts are starting to become tangible, especially as we prepare for the large-scale production of the Orca Performance. During the second quarter, we produced 123 Nomad Snowmobiles and 55 Orca Carbons. As I mentioned, the Nomad production run demonstrated successful ramp-up. The Orca Carbon production run continued to be held back by a single supplier's ability to deliver a key component. This issue is unique to the Orca Carbon, and as such, the Orca Carbon remains a limited production model as we transitioned over to the Orca Performance, which is expected to scale materially, given the redesign and use of large-scale manufacturing techniques compared to the Orca Carbon. We're excited to bring the Orca Performance to market. We launched the Orca Performance on August 9th, and it is currently being manufactured as we speak. We have a pathway on scaling our throughput in the coming weeks, and credit goes to our teams that have ensured that we have all the right resources and processes in the right places for us to scale at this rate. There's more to come, and we remain optimistic with a clear view of what's ahead for Taiga. During the second quarter of 2023, we delivered a total of 145 vehicles in Canada and the United States and recorded $4.1 million in revenues. This is a substantial ramp-up for Taiga as we more than doubled our revenue compared to the prior quarter. We're sparing no effort in advancing our capability to scale and push through the initial growing pains of scaling production, and we're 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 continued herculean effort from all sides of the business working in unison to scale, the initial climb is steep, is setting us up with a large advantage against the competition in the future. We are proud of what we have accomplished, especially as a young company that's forging a path towards sustainable power sports with the first-ever mass-manufactured off-road electric vehicles. We're continuously pushing engineering barriers to further electrification. Our engineers have utilized real-world data from our connected snowmobile fleets and have worked to improve the Nomad even further. Last year, we worked to increase the snowmobile's manufacturing efficiency through greater use of integrated parts. This quarter, we put our new platform's manufacturability to the test, I'm happy to report that we saw significant improvements in scalability as evidenced in our production numbers. We expect to carry this momentum into the Orca Performance production run, which is currently ongoing, followed by the Nomad production involved this winter, this year. Our initial plans for 2023 were to deliver between 1,700-1,900 vehicles during the year. However, given the continued supplier challenges, which are unique to the Orca Carbon, we weren't able to ramp up production on the Orca Carbon. As a result, we're now expecting to be at the low end of the guidance in terms of units produced in 2023. The ongoing Orca Performance and upcoming Nomad Snowmobile build are not expected to experience the issues faced with the supplier, and we expect both production runs to be on course for a strong production ramp-up. Vehicle deliveries are also ramping up as well, and we expect to move more volumes as we expand our TSP network. Although we're looking to expand the network mindfully, ensuring the best use of capital, we expect to onboard additional TSPs following our manufacturing ramp-up. Therefore, we expect a slight lag in our deliveries compared to the production schedule. We're fully focused on hitting our targeted weekly production rates and expect quarterly output to continue to increase throughout the year. We are gaining momentum, and Taiga is turning the page to enable clean power sports without compromise. 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, and 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'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 line for increased efficiency. We've taken a closer look at our production plans to extract further marginal cost efficiencies and redesign vehicles that are more efficient to mass produce. An example of this is the Snowmobile platform I just mentioned. By comparing our Snowmobile production run of 2023, we completed our first step of this year's production plan. The next major step is the ongoing ramp-up of the Orca Performance. In terms of the production schedule, as I mentioned before, the first Nomad Snowmobile production ended during the second quarter and was followed by the limited production run of Orca Carbon. We're now producing the Orca Performance, which is expected to ramp up materially in the coming weeks. The second 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 the delivery of their vehicle. In 2023, we focused more deeply on providing an overall great ownership experience at every touch point. That includes product quality and performance, as well as efficient delivery and after-sale 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. In the second quarter, our pre-orders remained stable around the 3,000 mark. 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 as a sales pipeline that follows planned production. As we hit larger production volumes with the Orca Performance and the following Nomad production run, you can expect us to also ramp up our sales and marketing efforts to build our sales channels. 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, and we work 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, and at the end of Q2 2023, we had 16 TSPs across 20 locations, including two new markets, British Columbia and Texas. We've recently announced our first Orca delivery in California, and with that, we now cover the top key markets in Canada and the U.S. These service providers are the first of many and will 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 customers and service them if needed. TSP applications continue seeing strong interest, and we have over 2,000 applicants. However, we're rolling out the TSP program in a structured manner that will accelerate with our production ramp-up. We 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 powersport industry, and we'll continue to innovate. We've made a number of tech advancements that we are planning to release across 2023 and 2024 model years. Some of these include over-the-air updates to improve our vehicle's charging capabilities, beta testing, and launching our Taiga mobile app, advancing our proprietary integrated powertrain, which is now on 6th generation, and numerous other projects that are pushing the limits of what's previously achievable in powersports. As I previously mentioned, we have begun the production of the Orca Performance this summer. The Orca Performance features a unique plastic composite hull, hydrodynamically engineered in-house to achieve leading dynamic performance and efficiency, all while using high-volume manufacturing processes. The Orca Carbon has paved the way as the ultimate premium personal watercraft, enabling Taiga to introduce the Orca Performance, a higher unit volumes, and lower 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 team of engineers in this segment. We've always maintained that we're equally a tech company that invests 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 half of 2023 has solidified our belief in 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 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 relentlessly over the years across long days and nights to build our foundation. 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. Bonjour. Good morning, everyone, and thank you for joining us today. The second quarter was yet another quarter of revenue growth for Taiga, as well, more than double of our revenue compared to the prior sequential quarter. We delivered a record 145 vehicles during the quarter. As a result, reported revenue of CAD 4.1 million, a 137% increase sequentially. Our costs on a sequential basis are continuing to improve on a per unit basis as we hit higher volume. For the second quarter of 2023, we reported cost of sales of CAD 9.5 million, which is higher on an absolute basis compared to the prior quarter, but is as expected as we increase production volume. However, we continue to expect the average cost of sales per vehicle to continue to decline progressively throughout the year. The gross margin on a percentage basis also demonstrated improvement as we continue to ramp up production and move to the higher efficiency snowmobile model. For the quarter, the gross loss was $5.4 million. As it relates to operating expenses during the quarter, R&D expenses were $4.3 million in the second quarter of 2023, compared to $1.6 million in the prior year's second quarter. The $2.7 million increase is attributed primarily to the decrease in capitalization of R&D expenses, as we stopped capitalizing at the end of the second quarter 2022. G&A expense of $5 million during the second quarter of 2023 were slightly higher than the $4.6 million in the prior year quarter. The increase is largely driven by the increase in number of employees related to our planned production ramp-up, including, customer service, logistics, and supply chain. Sales and marketing expenses slightly increased to CAD 1.2 million for the second quarter of 2023, compared to CAD 1.1 million in the prior year's second quarter, largely related to the ramp-up of our sales and delivery team. Our loss before other expenses was CAD 15.9 million in the second quarter of 2023, compared to CAD 11.1 million in the prior year's second quarter. The increase in the loss before other expenses were primarily related to the increase in our cost of sales expense and the increase in operating expense mentioned earlier. As of June 30th, 2023, the company had approximately CAD 26.4 million in cash and cash equivalent. Our reported cash position included $40.15 million from the private placements we closed on March 24th, and the additional $6.6 million under the same private placements, which we closed on April 22nd. The total realized net proceeds were approximately $42.6 million, after payment of transaction-related costs and fees. We are committed to securing additional source of funds for the company working capital needs and are making progress on that front. We'll be happy to report more once we have an update. Moving to the inventory. We ended the second quarter of 2023 with $25 million of inventory. As you recall, we took a non-charge of CAD 7.6 million at the end of 2022, tied to the net realizable value that reduced the carrying value of the inventory to CAD 20.8 million as at December 31st, 2022. The increase in inventory during the second quarter is associated with parts ordered for the ongoing Orca Performance build, along with a higher level of finished goods in inventory, concurrent with our increased production level. In the second quarter, we invested CAD 1.5 million in CapEx, which included purchases for tooling and manufacturing equipment required for the ongoing Orca production and the upcoming Snowmobile model, and to a lesser extent, some R&D equipment. We're currently investing in the molds for Orca Performance build, which will be the high-volume build. Our total CapEx for 2023 is now expected to be approximately $11 million, compared to the previously announced $14 million. For additional color, approximately 70% of our 2023 CapEx will be associated with mold and tooling, and approximately 25% will be associated with manufacturing equipment, including the additional value line. I will conclude in stating that we remain prudent in our capital allocation and will continue to invest diligently and strategically for the next generation of off-road vehicles. True to the Taiga mission. Thank you. Now I ask the operator to open the call to any questions. Thank you. We will now begin the analyst 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. Our first question comes from Derek Dley of Canaccord Genuity. Please go ahead. Yeah. Hi, thanks, guys. Just following up on that, on that revised CapEx number. Is the $3 million that we've seen it go down by, is that gonna be something that's, you know, pushed into 2024? Are you guys, you know, more comfortable with the lower CapEx level? Just perhaps a little bit on the cadence on that, given, you know, you're about $2.5 million so far year to date, so you've got another, you know, call it $9 million-$9.5 million to go. Is that gonna be split evenly over the balance of the year, or should we expect a little bit more in Q3? You should expect a little bit more in Q3. We have some payments due from some of the molds and the tools that we've purchased to allow the production ramp-up. In terms of the $3 million of CapEx reduction, I would say about 50% is probably what I would call banked, in the sense that we, we don't foresee the need for that, and there's probably $1.5 million that will be pushed to 2024 in terms of CapEx allocation. Okay. Then I think last quarter you mentioned you would have about a CAD five million-CAD 7 million working capital benefit from the, from the wind down of inventory. Can you just give us an update on, on where you are on that year to date? Yeah, look, the challenge we encountered with the Orca Carbon has that been an impact on our burn down of inventory as we had planned? Obviously, as we're gonna sell those vehicles and the mass production on the Orca Performance will yield the benefits. I expect the inventory by the end of the year to remain in similar levels that we currently have, maybe slightly lower. Okay. how is the, the initial consumer response to the new Orca? I'll let Sam answer that one, but I think we're quite happy so far. Go ahead, Sam. Yeah, hi, Derek. We were able to deliver the first units last week to our customers. The response has been very positive so far, with initial media and customer trials on that unit. Okay. Just in terms of the switchover from PWC production to Snowmobile, I think you said that you'll still be doing some PWCs in Q3. Will you be switching over those lines at some point in Q3, and should Q4 be... Like, is it predominantly all Snowmobile at that point? Yeah, Q4 will be predominantly snowmobile production, you know, starting in late fall, in time for the winter season. Okay. Last one, just in terms of, of the quarterly run rate for production, you mentioned you'll, you'll see a, I guess, a sequential increase in Q3 and then again in Q4. What is your target in terms of an exit rate for production, you know, maybe in the, in the last month or the last couple of weeks of, of Q4? You mean weekly production, Derek? Sure. Whatever metric you guys are comfortable sharing. Well, I think on a weekly basis, we're targeting to produce 50 to 70 units a week, depending on the week and the vehicles and the switchover. I think that's a fairly reasonable number to target. Okay, great. Thank you very much. Very good. Thank you. Our next question comes from Cameron Doerksen of National Bank Financial. Please go ahead. Good, thanks. Good morning. I wonder if you can just maybe describe in a little more detail, I guess, the changes with the Orca Performance that, that make it just a lot easier to, to manufacture and then improve the, the production rate? Just, just maybe you can provide any details around, I guess, the manufacturing process changes that are gonna be occurring with that model? Yeah. Hi, Cameron. Happy to do so. One of the big changes coming through, we've invested quite heavily in, in terms of development and tooling, is the new hull and deck. Going from that carbon fiber composite to a much more kind of advanced thermoplastic hull, which is pressed at very high pressures. That's a fully automated process that enables us repeatable parts at a much higher throughput rates. Inside the craft itself, we have our next generation motor and battery systems coming through, which are going from semi-automated to fully automated manufacturing processes. Some really great development by the engineering teams and production teams behind that, to bring in that sixth-generation powertrain on the motor and battery, reducing part count and really increasing throughput on the production line. Okay. Is there any way to, I guess, you know, give an idea of how many kind of labor hours per unit it, it, you know, the, the improvement will be, with, with the, the new manufacturing process relative to, to what you have been doing, I guess, on, in the sort of the lower production volumes the last year or so? I would say that there are certain processes that the savings in terms of time when you assemble the performance versus the carbon is significantly less because the components are, as Sam said, high volume type components. They've been designed to fit. In some cases, I'll, there, I'll give you an example, the station, we believe that we're gonna save 6 times the time it was taking to do the same activity before. There's a number of elements here that provide us with a lot of comfort and confidence that we will be able to scale. The other factor is we have the parts. In the carbon, as we highlighted, there's been a, a real and a substantial issue with a supplier on a component situation that we're not facing with the performance. That by itself will allow us to much better streamline the production line and be efficient. Okay, that, that's helpful. I guess just on that, that point around, around parts and, I guess, supply chain, availability, are, are there still, I guess, limitations on electronic components? I know you, you just talked about quite a few, you know, batteries. I mean, is that less of an issue now? I mean, just, just wondering where the supply chain, you know, how it looks as we kind of ramp up here over the next six months, how, how comfortable you are with the supply chain being able to support that significant ramp-up? Yeah, we're pretty... I think we're pretty comfortable now, you know, for the first time on a, on a production vehicle launch. We have good visibility into our supply chains and component ramp-up. On the electronic side, you know, we've built up quite an inventory on those components. The volatility in the market has definitely decreased, and we aren't seeing any shortages that interact with our production ramp-up. I think the only effects that could happen is, you know, we had that Port of Vancouver strike, and there does remain certain volatility in the supply chain, but I think Taiga is navigating it pretty well, and we've set ourselves up for success in the coming quarter with the Orca Performance and Snowmobile ramp-up. Okay, that, that's great. Maybe just this final question for me, just around, I, I guess, cash needs. You know, $26 million in cash. I mean, it sounds like, you don't have a, a lot of investment in inventory to do for the remainder of the year, but can you just talk about, I guess, other working capital items? Like, what, what's your expectation for the second half of the year for, I guess for, you know, cash investment and working capital? Well, as I said, earlier on, we don't expect a lot of increase in our overall working cap in terms of investment in the second half. There's been an investment made in Q2, and as I said, with the timing difference. The expectation, to be honest, is that we're gonna be producing the Carbon, the Performance, apologies. As we are building the Performance, we are ordering parts for the Snowmobile. Bear in mind that we're also selling the Performance to the market, right? When you look at the in and outs, should equal out, that there will be a bit of volatility from one, you know, from one week to the other, obviously, in terms of in and outs. Overall, I would say that we expect the working capital to stay within a, a reasonable level. Okay. No, that's, that's helpful. All right, that, that was all I had. Thanks very much. Thank you. This concludes the question and answer session. I would like to turn the conference back over to Sam Bruneau for any closing remarks. Thank you all once again for joining us for our Q2 results call this morning. We're excited for what's ahead for Taiga and look forward to seeing you out on the water and soon on the winter trails. Thank you. Thank you. 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 conditions, 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 of our 2022 Annual Information Form. Thank you for joining us today for Taiga's second quarter 2023 results conference call. You may now disconnect.