Welcome to the Taiga Motors Corporation's Third 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, 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, Ashia. 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 caution 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 over to Sam to begin. Good morning, everyone, and thank you for joining us today for our third quarter 2023 results call. The third quarter was another step in establishing Taiga as a leader in powersport electrification. We launched the Orca Performance, which was engineered for mass production through the use of greater part integration and SMC molding for its deck and hull, which resulted in us increasing our manufacturing capabilities on our much-improved production line. A lot of work has gone into reaching where we are today from a manufacturing perspective. With our thousandth vehicle rolling off the line last week, we at Taiga are proud of where we've come from since initiating production at our Montreal production plant in 2022. Despite the numerous headwinds we faced, we persevered and achieved significant milestones in the first three quarters of this year. With 365 vehicles produced in the third quarter, not only did we double our quarterly production compared to the previous quarter, but we also hit significant milestone with multiple instances of producing 50 vehicles per week. Again, I'd like to emphasize that this has not been an easy task. Taiga's vertically integrated approach to design, engineering, and manufacturing is technologically complex and requires continued herculean efforts 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. With foundations of Taiga production operations now established and with our throughput ramping up steadily, we're now able to apply greater focus on sales and deliveries. During the third quarter of 2023, we delivered a total of 147 vehicles in Canada and the United States and recorded CAD 4.2 million in revenues. Accelerating vehicle deliveries is a key component of Taiga's success, and we've been ramping up our Taiga Service Provider network. During the quarter, we added nine new locations for a total of 31 TSP locations in Canada and the United States at the end of the third quarter. Concurrently, we're also examining our hybrid direct-to-consumer model to further optimize our delivery process and to drive scale sales. During the quarter, we initiated deliveries in the state of California, which, in combination with Texas and Florida, provides Taiga access to sales in the United States' three most prominent boating and EV adoption hubs. We're also looking at opening additional markets in the fourth quarter as we expand our sales efforts. We're now beginning to invest in sales and marketing more actively than we had in the past. Our products are well-loved by our customers and industry reviewers alike. While our pre-order numbers and consumer interest remain healthy, we've seen certain headwinds on watercraft sales due to seasonality of production and generally rising inventories across the boating industry. We're now naturally progressing to an increased focus on ramping up deliveries, expanding the sales teams and TSP locations in southern states, with sales now gaining momentum. We have actively worked to better align our production schedule with the season, and we're excited to be producing the Nomad in November in time for the upcoming winter season. Further, we've also initiated TSP-led financing solutions to help customers get their vehicles more easily. We've got a great product. We've worked tirelessly to get our production throughput to deliver electric vehicles at scale that can offer greater performance and equivalent gas models with beneficial total cost of ownership. With this, Taiga is turning the page to enable clean powersports without compromise. Our success is enabled by our commitment of three core strategic priorities for 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 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 redesigned vehicles, such as the Orca Performance, that are more efficient to mass produce. The Orca Performance, which was launched in the third quarter, was a result of our ambition to scale production efficiently. By recently completing our Orca Performance production run, we were able to prove our scalability, with rates of 50 vehicles per week being achieved. We're not done yet and are working on continuing to drive growth in our production throughput. The changeover to Nomad snowmobile production is now underway. In time for the 2023-2024 winter season, we've worked hard... We've worked hard to, for our production to be aligned and expect to have a more effective delivery process for the Nomad. Overall, with a one to two week production line changeover and the upcoming holiday season, we expect to produce approximately 1,000 vehicles in 2023. 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 waiting for their vehicle delivery. In 2023, we're continuing to focus more deeply on providing an overall great ownership experience at every touchpoint, and that includes product quality and performance, as well as efficient delivery and after-sales support via our expanding TSP network. We've grown our TSP network to 31 locations in Canada and the United States, and are continually working to add more locations to service our customers. We're diligently working to ensure our TSPs are fully equipped and supported to deliver our vehicles to our customers and service them if needed. TSP applications continue seeing strong interest with over 2,000 applicants, of which approximately 60% are in North America. We'll continue rolling out the TSP program in a structured, thoughtful manner that will accelerate with our production ramp-up and select the optimal providers to service our customers. 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. We're now investing in our sales and marketing to further grow our brand and drive our deliveries. As we hit larger production volumes, you can expect us to also ramp up our sales and marketing efforts to build our sales channels. During the third quarter, our pre-orders stood at the 2,750 mark as we continued deliveries to reservation holders. We will continue to manage our pre-order book and sales pipeline proactively to follow planned production. On furthering our technology advantage in off-road electrification, Taiga continues to hold significant tech advantage in powersport electrification. We're on a mission to revolutionize the powersport industry and will 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 vehicles' charging capabilities, launching our Taiga Mobile cloud platform, advancing our proprietary integrated powertrain, which is now in its sixth generation, and numerous other projects that are pushing the limits of what was previously achievable in powersports. As I mentioned previously, we have begun the production of the Orca Performance this quarter. The Orca Performance features a unique plastic fiber composite hull, hydrodynamically engineered in-house to achieve leading dynamic performance and efficiency, all while using a high-volume manufacturing process. The Orca Carbon has paved the way as the ultimate premium personal watercraft, enabling Taiga to introduce the Orca Performance at higher unit volumes and lower prices to accelerate the transition to sustainable boating. We also officially announced the launch of our new Taiga Mobile app with cloud connectivity this month. The new app brings a rich set of new features to the Nomad snowmobile and the Orca personal watercraft owners, enhancing their ownership experience, whether for work or recreational usage. Our new app provides an industry-first real-time vehicle localization, which unlocks a new way for customers to interact with their vehicle and allows them to see their global positioning and status. In addition, consumers can now modify mode preferences, features, unit measurements, and charging details to make the Taiga ownership experience better than ever. The app utilizes the wireless connectivity we've built into every Taiga vehicle, which not only allows the user to connect with their vehicles, but also allows fleet operators to access telematics for data and allows us to remotely diagnose any issues that may come up. These are advanced machines like no other in the powersports world. 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'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 as a part of our Taiga DNA and our mission to revolutionize powersports and change how people interact with the great outdoors. The third quarter of 2023 has solidified our belief in our capability to scale Taiga. We're now demonstrating that we can scale the business, but we're not done yet, and we're looking forward to strong continued growth in the year ahead. All 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, and thank you everyone for joining us today. Third quarter was another quarter of revenue growth for Taiga, as we more than tripled our revenue compared to the third quarter of 2022. We delivered a record 147 vehicles during the quarter, and as a result, reported revenue of CAD 4.2 million, a 222% increase year-over-year. For the third quarter of 2023, we reported a cost of sales of CAD 12.1 million, which also includes an additional CAD 2.1 million inventory write-down linked to the net realizable value, or NRV, as well as accelerated depreciation on tooling that will not be used on future models. However, we expect the average cost of sales per vehicle, per platforms to decline progressively as we increase production volume for the Nomad and the Orca Performance. As it relates to the operating expenses during the quarter, R&D expenses were CAD 4.1 million in the third quarter of 2023, compared to CAD 4.4 million in the prior year's third quarter. The 7% decrease is attributable primarily to lower professional fees linked to the production development.... G&A expenses of CAD 4.7 million during the third quarter of 2023 are down 14% compared to CAD 5.5 million in the prior year quarter. The decrease is largely driven by lower insurance costs as well as reduced professional fees. Sales and marketing expenses slightly increased to CAD 1.8 million for the third quarter of 2023, an increase of 45% compared to the CAD 1.3 million in the prior year third quarter, largely related to the increase in media and advertising spend related to the Orca Performance and the expansion of our sales and delivery teams, in line with what Sam mentioned earlier today. Our loss before other expenses was CAD 20.2 million in the third quarter of 2023, compared to CAD 15.5 million in the prior year third quarter. The increase in the loss before other expenses was primarily related to the increase in cost of sales, including the NRV adjustments, the increase in sales and marketing expenses, and as well as a non-cash CAD 1.6 million net financing expense from the convertible bond issued earlier this year. During the third quarter, we also closed a CAD 15 million secured term loan agreement with Export Development Canada to provide Taiga with additional liquidity and flexibility in managing its working capital. The term loan provides for multiple advances over a nine-month drawdown period, with the first draw being in October 2023. The term loan matures on February 10, 2028. As of September 30, 2023, the company had approximately CAD 5.8 million in cash and cash equivalents. Our reported cash position does not include any draws from the CAD 15 million term loan I just mentioned. We continue to explore options in securing additional source of funds for the company as needed in the coming quarters. Moving on to inventory. We ended the third quarter of 2023 with CAD 32 million in inventory, net of the CAD 2.1 million non-cash NRV charge. The increase in inventory during the third quarter is associated primarily with the increase in finished goods, which stood at CAD 7.4 million at the end of the quarter, as well as product parts to a lesser extent. In the third quarter, we invested CAD 5.8 million in capital expenditure, which includes purchases for the SMC mold and tooling for the Orca Performance and other manufacturing equipment. Our total CapEx for 2023 is now expected to be in the CAD 10 million-CAD 11 million range, which is lower than our initial expectation of CAD 14 million at the beginning of the year. For additional color, approximately 75%-80% of our 2023 CapEx will be associated with molds and tooling, and approximately 15% will be associated with manufacturing equipment, including an additional bench line. The balance are multiplied to R&D capitalization, of equipment and internal fleet vehicles. I will conclude in stating that we remain prudent in our capital 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'll ask the operator to open the call for 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. The first question comes from Luke Hannan with Canaccord Genuity. Please go ahead. Thanks, and good morning, everyone. I just wanted to start with, from a high level, what you're seeing from a consumer behavior perspective, and specifically, if we think about the EV adoption curve, if you will, it's usually those first early adopters of consumers, that cohort that comes in and is attracted to the EV space in general, at least with automotive, and I imagine that's the case with powersports as well. Now, you've been in operations for some time. I'm curious to know what your perspective is on whether we're still at the point where you're seeing mostly early adopters come in to buy your product, or whether we've transitioned beyond that, and whether Taiga and powersports EV powersports units in particular are generating more traction with that mainstream consumer. Hi, Luke. Yeah, definitely. I think we're seeing a healthy growth on both sides. On the early adopters on EV continue to have a strong demand for our product, but we're also starting to see some good conversion of existing powersport users, notably on the fleet side with the snowmobile and the watercraft, where the total cost of ownership is just so much lower on the EV side. That's pushing a faster transition from the gas models to the electric ones. Got it. Okay, thanks for that. And then, Sam, maybe sticking with, with you for a second. I think you had touched on in, in your prepared remarks that you're, you're examining the, the hybrid direct-to-consumer model and, and looking for more optimization there. Can you give a little bit more detail on, on what exactly that entails? Yeah, definitely. I think, you know, when we started Taiga at the beginning in lower unit volume deliveries, it was more efficient to just go more, you know, more purely direct through Taiga to the customer with kind of minimal TSP interaction. But now as we're scaling, we're really looking to build out that partner network and adding one. For one example, in Q3, was really adding showroom units in all of the different stores, so people could go have a local touch point and really see, touch, and feel the unit because Taiga can't be everywhere at once anymore. So we're really building out a network, giving them the tools, the vehicles, and the training so that customers can go see the units, learn about the units directly at the TSP without necessarily needing to go through Taiga, and that's really enabling us to scale more rapidly. Okay, makes sense. And then, a couple more here, just on the near-term cash needs. First, on the Export Development Canada facility, how much of a drawdown did you guys take in October? I'm sorry, in the fourth quarter, we expect to draw about CAD 10 million-CAD 12 million during the quarter. Okay. Then my last question here is just trying to get a better understanding of, Eric, I appreciate your commentary on the CapEx outlook for this year and the balance between what's tooling, what's equipment, et cetera. Can you give us a sense, either directionally or perhaps quantifying it, what the CapEx outlook will be for next year? How much will be tooling, how much will be simply equipment, so on and so forth? I imagine that most of the tooling CapEx is behind you, but perhaps you could just add a little more detail there. Yeah, look, we're not gonna provide the figures per se for 2024 at this point. However, what I can tell you, to your, to your observation, most of the CapEx linked to toolings have been incurred in 2023 and 2022. So I would expect that level of CapEx as it relates to tooling to go down in 2024. There will be some, but a lot less material type of investments. So I think it's fair to say that on an overall basis, CapEx for 2024 should be lower than in 2023. Okay, appreciate it. Thank you. Yep. Our next question comes from Cameron Doerksen with National Bank Financial. Please go ahead. Yeah, thanks. Good morning. Maybe just a few questions around, I guess, the production ramp. By just looking at, I guess, the sort of implied Q4, you know, it sort of implies a pretty significant, you know, still a pretty significant number. Just sort of wondering, you know, where are you, I guess, so far in Q4? Is it, you know, enough that it gives you pretty good confidence you'll be able to hit that kind of 1,000-unit production for the full year? Hi, Cameron. Yeah, definitely. I think we're seeing a good continued momentum in Q4 that gives us a pretty strong confidence that we're gonna hit that 1,000 total produced or more for the year. Just the slight caveat on Q4 is, you know, we are doing, it includes a changeover on the snowmobile line and also just that kind of one week of Christmas shutdown. So you have to take that into account, the total kind of vehicle production of the quarter, but still kind of strong continued momentum off our Q3, so we should see some good production numbers and hitting that 1,000 vehicle mark for the year. Okay. And, and on the, I guess, you know, there's obviously a disconnect between production and deliveries, and, and Eric, you mentioned the CAD 7.4 million in finished goods inventory. Well, what's that gonna look like at the end of Q4? Is there still gonna be... You expect to kinda unwind that, or is there still gonna be, I guess, a disconnect between, I mean, I know there's always going to be, but just, you know, the, the size of it, just wondering, sort of the size of, I guess, finished goods sort of at the end of the year. You know, just, just wondering what that's gonna look like. We're gonna see an increased level of sales and deliveries in Q4, kind of going through some of that inventory. Part of that, the watercraft being a bit out of season now, is gonna have a bit of a slower burn down as we roll over into 2024. But we're expecting some pretty fast turnaround on the snowmobile sales, as we're really in season now for those. But still some continued sales on the watercraft, which can allow us to sell a good part of that inventory. Cameron, I think you have to keep in mind also that through our business model, and I think I've articulated that in the past, you have to keep in mind that the last two weeks of production of the quarter are more likely than not to be on our books, right? Just in terms of timing and deliveries and so forth. Right. So as we produce during the last few weeks, it's not abnormal that you're gonna carry some level of finished goods. So I'm alluded to the Orca, and on the snowmobile, I think it will be, you know, a bit more just on time type scenario, but there will be some overlap as we finish the quarter in the time of deliveries. And in this case, more specifically in Q4 with the holidays, hard to predict exactly how the delivery schedule will mesh through the last two weeks of December. Okay. Okay, that, that makes sense. And just maybe just finally, I guess, on the production, I mean, you talked about hitting the 50 per week mark pretty consistently, which is good to see. I'm just wondering where we can go from here. I mean, you've invested a lot in the tooling to support, I assume, a higher production rate. Just wondering, you know, what you—with what you've invested, you know, what's kind of the art of the possible here in 2024 as far as, you know, production per week? Yeah. No, we're continuing to really now focus on production efficiencies on the line, so that 50 was really our baseline. I would say we're beyond that now, and in 2024, really looking to push above, you know, 75 or higher on a per week basis. Okay. So 75, I guess sort of the next step, goal for you? Yep. Okay. Okay, no, that's helpful. Appreciate the time. Super. 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. Please go ahead. Thank you all once again for joining us for our Q3 results call this morning. We're excited for what's ahead for Taiga and look forward to seeing you out on the winter trails. 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 being made during this call. This call may contain forward-looking information within the meaning of applicable securities law. 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 sections 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 third quarter 2023 results conference call. You may now disconnect your lines.