Good morning, and thank you for joining us to discuss UGE International's second quarter of fiscal 2022 financial results for the period ending June 30, 2022. On the call today we have UGE CEO, Nick Blitterswyk, and UGE CFO, Stephanie Bird. During the call, all participants are on a listen-only mode. Following the presentation, we will conduct a question and answer session. We've collected investor questions via email, but you can also submit your questions through the Q&A tab in the web portal at any time, and management will answer them following the prepared remarks. Next slide, please. Before management discusses the results, I'd like to remind everyone that certain statements in this call may be forward-looking in nature. These include statements involving known and unknown risks and uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in our forward-looking statements. For caveats about forward-looking statements and risk factors, please see our MD&A for the quarter end of June 30, 2022, which can be found on our company profile at SEDAR and on the company's website. I will now pass the call over to UGE CFO, Stephanie Bird. Stephanie. Good morning and welcome everyone to the call. I'm Stephanie Bird, CFO of UGE International, and I'm joined today by our CEO, Nick Blitterswyk. For today's webinar covering our Q2 2022 results, Nick will begin by summarizing key business highlights for the quarter. Next, I will run through our Q2 2022 financial results. From there, Nick will provide some concluding remarks with a look towards the future before we take questions and then wrap up the webinar. As a reminder, you can submit a question through the portal on the left-hand side of your screen, and we will run through them after our prepared remarks. As always, our goal is to be mindful of your time and keep this webinar concise and to the point. We will be speaking relatively high level and focusing on the areas that we feel are most important to understanding our business and financial results. Our website address is listed here as well, where you can download our full financials. We also want to remind our listeners that we report in US dollars, so the results of this webinar are represented in US dollars unless stated otherwise. With that, let's start by talking about our key business results in the second quarter. Nick? Thanks, Stephanie. As Stephanie mentioned, I will start by talking about our business updates, and I first wanted to talk about the Inflation Reduction Act. The U.S. Senate and House have both passed the IRA, and President Biden will sign it into law this week. It is not hyperbole to say that the IRA is the most important climate legislation in history. I also believe that as time goes on, people are understanding more and more about just how good the IRA is for our industry. Within the IRA, one of the biggest benefactors is developers of community solar projects. Let's go into why. First, as many of you would already know, the IRA includes a 10-year extension of the investment tax credit, or ITC, at 30%. The ITC has been in place for about 15 years and has been extended several times, always for a number of years that you could count on one hand. Prior to the IRA, the ITC was 26% this year, 22% next year, and 10% thereafter. A 10-year extension at 30% is a big deal, but that is just the beginning of how we'll benefit from this bill. Also, just a reminder before I go into more details, when we talk about these percentages, it is a tax credit one receives from the IRS, generally based on the appraised value of a project. These increases are going to drive improvement in project IRR, cash flow, and expand our addressable market significantly. While 10 years at 30% is fantastic, there are so-called adders which can actually increase the ITC up to as high as 60%. When I mentioned that community solar stands to benefit more than most by this bill, this is what I am talking about. In essence, there are three categories where projects can see their ITC increase above the 30% level. The first one is if a project stands to provide benefit to low and moderate income communities. If so, you will see your ITC increase to as much as 50%, so an increase in 20%. Many of our community solar projects specifically provide energy to low and moderate income communities, so this is an adder we plan to make use of. There is a second category called energy communities, where you can earn a 40% ITC, so an increase of 10%. Examples include brownfields such as the capped landfill project we are currently building in Maine. That was the Norway, Maine project where we hit NTP in June. Taken together, we plan to develop many of our projects in order to take advantage of one of these two categories that I just mentioned. Separately, you can earn another 10% if you use a certain portion of domestic content in your projects. The required percentage increases over time as domestic supply chains expand, but we expect that over time, in many or even most cases, we will be able to take advantage of this adder, which would mean a total ITC as high as 60%, depending on the combination of the domestic content adder plus the earlier ones that I mentioned. Of course, we'll be looking to maximize our ITC in all situations, and it's too early to provide accurate forecasts for what percentage of our projects will receive which level of ITC, but we believe that it will be a frequent occurrence that our earned ITC will be higher than the 30% base level. Another benefit of the changes in the IRA is that interconnection upgrade costs will now be eligible for the ITC as well. When you connect a project to the grid, there are typically interconnection upgrade costs that the developer must pay to the utility, and they can be significant. Previously, these were not eligible for the ITC. With the IRA, they are. Another benefit is that standalone energy storage systems can now qualify for the ITC. Previously, they did not. As a reminder, we are developing a number of standalone energy storage systems in Massachusetts, and we expect to do so in other states in future as well. Next is that tax credits generated by the ITC will be sellable. To date, developers had to monetize the ITC through creating a cumbersome and expensive partnership flip structure, which in essence led to the lawyers and accountants making the best returns. The IRA simplifies this process greatly by allowing developers to simply sell the tax credits, which we expect will lead to better, quicker monetization of them for developers like UGE. In addition, the IRA has really significant incentives for manufacturers of solar and energy storage components in the U.S. Of course, UGE is not a manufacturer and we have no plans to be. This is important because we fully expect that this will lead to a boom in domestic manufacturing of components, leading to decreased costs and lead times, as well as being able to leverage that 10% ITC adder that we talked about earlier. Those are the main points as it relates to UGE, but we would probably fill a whole hour talking about IRA, and more points seem to keep coming up every day as everyone grapples with its impact. We have said before that we are in the decade that becomes where solar and renewable energy become dominant, as opposed to fossil fuels. Solar is already 45% of all new energy capacity being built in the U.S., and that is only going to increase significantly going forward. Right now and in the coming years exists a tremendous wealth creation opportunity for UGE, and we feel we are very well positioned to take advantage. With that, let's go into our numbers. On this slide, you see the overall project development table as of June 30, 2022, which you can find in our MD&A. On this slide, you can see our backlog, which was very much back on track in Q2. In fact, we posted our largest gain in the company's history as backlog grew 51 megawatts in the quarter. Even better, backlog has continued to grow in Q3 and is now over 200 megawatts as we aim to reach 250 by the end of the year. As a reminder, our backlog projects are ones where we have a contract to develop a project, we have filed for interconnection, and the project has passed our investment committee approval, meaning it's a project that we expect to eventually build. Backlog is a portion of our overall projects in development, which sat at 381 megawatts at the end of Q2. The remaining projects in development are ones that we have contracts with the real estate owner, but we are still in earlier stages of development, but we are looking to move those projects into backlog in the coming months. Each quarter, we publish a supplemental disclosure file, which can be found on our website's investor section. The file lists the projects in our backlog along with key financial metrics and forecasted milestone dates. As of last quarter, we are providing a graphical representation of this data as we work towards our medium-term goal of 100 megawatts of operating assets. This chart shows the number of megawatts we are forecasting to hit NTP in each quarter, as well as the number of megawatts we are forecasting to hit COD in each quarter. The kind of lime green line shows the cumulative megawatts forecasted each date and then as of this quarter's release, so as of yesterday, whereas the kind of darker green line is as of last quarter's release, so a few months ago. A reminder that this is a forecast of our backlog projects only. It does not include any assumptions for other projects we have in development in our pipeline or that we will secure in the future. Put another way, we will continue to win new business, and we expect to add to these figures. Lastly, we'll mention the project development is inherently variable and one should expect dates to move around as projects mature. We look forward to sharing our progress towards our goals with you in future quarters as well. On my last slide before turning things back over to Stephanie, we want to highlight a few other important updates. First, in Q2, we completed the deployment of two rooftop projects, which totaled 0.72 megawatts, adding to our operational portfolio. Another project with 0.74 megawatts in capacity, construction has also been completed, but is just waiting on the utility for interconnection. They themselves are waiting for a transformer in order to connect the project, which we expect will occur in the coming weeks. All three projects have also received their third-party appraisals in recent months, and in each case were valued north of $3 per watt, well ahead of our own prior assumptions. Second, we reached NTP on one 1-megawatt site in Maine, which will soon be followed by several other NTPs in the state, including one which is just weeks away from hitting that milestone. We have several other projects expected to hit NTP through the end of the year, as well as you saw on the last slide with our supplemental disclosure information. Next, I want to touch on supply chains. As we talked about in our Q1 webinar, the most notable supply chain consideration at that time was the Department of Commerce's investigation into imports of solar panels from 4 Southeast Asian countries, which collectively represent 85% of U.S. solar panel imports. Because the tariffs, if implemented, would be retroactive, it had very significantly dented supply of panels into U.S. During Q2, President Biden put a moratorium on any new tariffs associated with this dispute for two years, which provided huge relief to the industry. As a result of the moratorium, we have seen supply chains stabilize together with panel prices decreasing. Aside from that, supply chains are generally manageable. I just mentioned that we were waiting on the utility for one of our projects to install a transformer that they themselves were waiting on. There are some challenges out there, but in the big picture and considering the long lifetime of our projects, we believe that they are manageable. Another key item in Q2 was our $25 million project financing. This debt and tax equity facility provides low-cost funding for six main projects and is the most competitively priced project financing we have completed thus far. The market for such financing continues to be robust, and we expect additional closes before the end of the year. Lastly, we have been pleased with demand for our project development green bond product. After closing a CAD 2.9 million issuance in April, we closed another similar offering in July. As our portfolio continues to grow, the collateral that we have continues to grow as well, which opens up avenues such as our green bond product as an attractive non-dilutive source of capital. It also proves the value of being a public company as we believe it to be an attractive source of capital versus that of our private competitors. With that, I will now turn it over to Stephanie Bird to summarize our Q2 2022 financial results, and then I'll return for some concluding remarks before taking your questions. Thank you, Nick, and thank you for joining us today. I'm going to review a few key items from our Q2 2022 financial results. Looking at this slide, energy generation rose 48% to 347,000 kWh in the three months, and 54% to 520,000 kWh in the six months, as a result of the increase in UGE's energy generating assets. Note that although the installed base appears to have increased year-over-year by almost 1 MW, the recently completed projects will only start to generate meaningful numbers in Q3. This generation translated into $80,000 of recurring revenue with 81% margin versus $52,000 of revenue and 77% margin year-over-year for the three months, and $125,000 of revenue with 82% margins versus $80,000 of revenue with 78% margins year-over-year for the six months. Revenue in Q2 from client-financed EPC agreements was $393,000 and $572,000 in the three and six months of 2022, which marks a decline from $487,000 and $858,000 in the prior year. This line of business is now less of a focus. Margins, however, were strong at 40% above what we should typically see for this line of business. Consulting and engineering services revenue was $106,000 and $248,000 for the three and six months of 2022 versus $36,000 and $62,000 in the prior year, with gross margins year to date improving from 28% to 33%. We're happy with the continued growth of this business unit, including a significant increase in bookings this year, and look forward to continued growth from this business line. Operating expenses were $1.8 million and $3.4 million for the three and six months, a 47% and 43% increase year-over-year, respectively. The increase was due to the increased employee and contractor headcount from 45 at the end of Q2 2021 to 57 in this past period, as well as larger annual raises this year, given the inflationary environment. Our three-month net loss, adjusted net loss, and Adjusted EBITDA increased $637 thousand, $388 thousand, and $224 thousand, respectively year over year, while our year to date increased by $1.1 million, $807 thousand, and $525 thousand. The predominant reasons for these differences are the investments we're making to scale our team and portfolio ahead of our project portfolio reaching scale. That said, we are confident the investments we're making will be rewarded by strong cash flows from our projects once deployed. As a reminder, we are in the process of transitioning from a one-time revenue model to recurring revenue model, and losses are expected until the company's self-finance portfolio reaches a larger scale of project deployments and operational projects. While this transition occurs, developing and building projects creates positive cash flows through the retention of a developer fee. This will become more noticeable as our deployments scale up. Moving to the next slide, let's look at our financial position. As of June thirtieth, 2022, UGE had $1.8 million of cash and a working capital deficit of $313,000. On June twenty-ninth, 2022, we closed a $25 million project debt and tax equity facility to finance six community solar projects in Maine. Subsequent to year-end, we closed a brokered private placement of debenture units for aggregate gross proceeds of CAD 2.225 million. Additionally, our cash used in operations year to date was $2 million, which included $1.3 million in the quarter. Our balance sheet has been growing as projects progress through our backlog. Of note, this quarter is the increase for both construction in progress and solar facilities in use together with their associated project debt as 3 projects all reached or nearly reached commercial operation and a new project reached NTP. Project debt was also impacted by the Green Bonds raise in the quarter. Additionally, there was an increase in capitalized project development costs, which is an indication of the progression of our projects through the backlog towards construction. The increase in the ROU assets and their associated lease liabilities, as well as accrued liabilities for the related commissions, is related to us significantly increasing site procurement with 15 leases being signed in the quarter as compared to 3 in Q1. It should be noted that there is a significant increase in deferred revenue associated with the delta between customer receipts and timing of revenue recognition for our EPC projects. This is also a sign that we expect near-term one-time revenue to increase as those projects reach their milestones. Operating debt increased $454,000, primarily as a result of the final COVID-related advance in Q1. That concludes my prepared remarks, and I'll turn it now back to Nick. Thanks, Stephanie. As you can see, we continue to make solid progress towards our goals. Our operating portfolio is starting to grow more quickly, a trend that will accelerate in future quarters. We are especially excited that we will have several projects reach NTP throughout the rest of the year, which will see our portfolio grow much further in 2023. With this growth, we are in a solid position to meet our 2024 goal of having 100 megawatts of operating assets. As we have said before, we see 100 megawatts of operating assets as the tip of the iceberg for this business, and have longer term goals to reach 500 megawatts of operating assets in the next 5 to 7 years. With that, we'll wrap up the prepared remarks by pointing you to where you can find more information. As mentioned earlier, our website is regularly updated and contains all of our financial filings and other updates. You can also find our financial filings on SEDAR.com. You can also visit Sophic Capital's website for additional information and follow us on Twitter and get links to announcements and other media. Thanks again for tuning in today. Marcel, back to you. Thank you, Nick and Stephanie. We've collected the questions investors have submitted since issuing the financial results last night, and we've also collected the questions submitted through the webinar's Q&A tab. We'd like to thank all participants for your questions. Moving on to our first question. Our first question comes from Devon Shilling from PI Financial. Backlog saw a very large increase from Q1. Can you discuss the drivers of this increase? Did clarity around the solar tariffs result in some of the pent-up demand? I think this is Nick. The number one reason for the growth, I feel like generally speaking, we're seeing a very robust market out there. We added a large number of like pre-backlog projects into stage 3.0 in around like the latter half of last year. The maturation of a number of those projects into backlog is probably the number one driver of that growth. You know, I think as of right now, the number I don't have it at the tip of my fingertips. I think it's about 185 megawatts, if I'm not mistaken, still sit in stage 3.0. We feel like we have like a really robust pre-backlog pipeline there that'll lead to more backlog growth in the coming quarters as well. How many more projects are scheduled to become operational before year-end? What's the incremental megawatts that we should be expecting in the timing? There's the one project we mentioned, which is 0.74 megawatts, which is essentially done, and we're just waiting for Con Edison in that case to install the transformer to connect it to the grid. That one obviously will be. Through the end of the year, it's mostly going to be about hitting NTPs, though. We hit NTP on about a megawatt project in June. I mentioned there's another one in Maine that's really just weeks away now from hitting NTP. If you look at that supplemental disclosure file, there's a number of other projects we expect to hit NTP as well. The actual COD date on those is in maybe all cases going to be within 2023. We'll see the actual megawatts operational, really increasing in the 2023 calendar year. Our next questions come from Samir Joshi at H.C. Wainwright & Co. It seems that the Stage 3.1 backlog in the U.S. increased sequentially to approximately 177 megawatts at the end of 2Q 2022, from 130 megawatts from the end of 1Q 2022. In tandem, pre-commitment Stages 1 and 2 projects dropped. Were more projects not added to Stage 1 and 2 pipeline during the quarter? And what was Stage 3.0 fast track for these projects? There's a good amount of detail in there. We of course had a significant portion of projects move from earlier stages into backlog in Q2. They of course need to come from somewhere, right? Those projects come from stages 1, 2, and 3.0. That would have been a vacuum pulling some projects out of there. You know, projects that are in stages 1 and 2, obviously we don't move forward with all projects, you know, because maybe we find them not to be feasible or a client decides not to move forward, et cetera. I think there was also some cleanup done in Q2. you know, I know like for example, we mentioned earlier that backlog is now in excess of 200 megawatts, post the closing of Q2. We continue to see good growth there and doing our target on getting to a backlog number of 250 megawatts by the end of the year here. In order to get incremental ITC benefits beyond 30%, have you started identifying geographies and targeting communities that are A, dependent on fossil fuels, B, low income, and C, Native American? The answer is yes. The areas that we feel are most applicable. Community solar programs often include an LMI or low and moderate income aspect to them already. That adder that's up to 20% that I mentioned, that one is, I think very nicely aligned with a lot of the stuff that we do. That's one that I think we'll certainly look to use a fair bit. We already had a brownfield strategy building projects on, for example, capped landfills and things like that. I mentioned that the Norway, Maine project that we hit NTP on in June, that one is on a capped landfill. It's also a good opportunity to mention, you know, that right there, for example, is a project that we had expected a 26% ITC on. Now because IRA has been passed and because of the energy communities aspect and brownfields, we now expect that to be a 40% ITC on that project. I think if you go through our backlog, you see a number of those scenarios where we were expecting a lower ITC, and that's been enhanced quite a bit with the passage here of IRA. Sub-1-megawatt projects also have some additional benefits in the IRA. I know a significant majority may satisfy this limit, but what proportion of these projects in the pipeline and backlog are sub-1-megawatt currently? I would point to the supplemental disclosure file to give the accurate number on that. In that file, we do list out each project and its capacity. Instead of trying to estimate what that percentage is, I would just say it could be calculated there, on, like, a total megawatts basis, though. You know, a very good portion of our projects are above a megawatt, especially with ground-mounted community solar projects, which make up a good portion of our backlog at this point in time. Our next question comes from Nick Boychuk from Cormark. What early impact has the IRA had on project development timelines, financing and panel sourcing? Are you seeing a noticeable improvement to get new projects to NTP and COD faster than previously? Marcel, that question was specific to IRA. Is that right? That's correct. Yes. Yeah. Yeah. I think definitely there's a lot of excitement in this space right now. You know, I mentioned off the top, like this is the largest climate bill in history, and I think people are, you know, continuing to realize just how much good stuff is in this bill, and so on. There's a lot of excitement. In terms of like, is it? I think it is leading to companies, including ourselves, saying, "Okay, like, pedal to the metal. We have an even bigger opportunity than we thought here." I'm not seeing it lead to people saying like, "Hey, we wanna get to NTP quicker or COD quicker." I think people generally are already trying to do that as quick as they can. Yeah. I think definitely like, general excitement and bullish moves towards expanding, you know, yeah, expanding, development. But I don't see it leading necessarily to pressure on quicker timeframes or what have you. Can we please get an update on the outlook for further increases in corporate costs? Yeah, you know, we expanded a lot in 2021 to in essence take advantage of the opportunity in front of us, right? You know, we're not going to see the same kind of like percentage level growth, or at least we don't expect to, over what we did, you know, in over the last year. I think like at this point in time, we see things growing modestly, but much more modestly than they had, as we scaled up last year. Our next questions come from Naji Baydoun from IA. When do you expect your G&A costs to stabilize, and at what levels? Yeah. Similar to what I just mentioned, you know, like at this point in time, we have a really good platform in place. We have really good people on the bus, if you will. At this point in time, like, you know, we're at the scale where, for example, we just added an HR manager. You know, there's some things like that that are kind of, you know, in terms of total SG&A spend, a little bit at the margins. For the most part, though, we're scaling at this point a bit more, you know, organically and more linearly than we did before. I think the level of the opportunity in front of us, I wouldn't say that it's going to level off and be completely flat, because, you know, to the degree that we're seeing opportunities to expand, we wanna take advantage of those opportunities, but it's not gonna be the same level of growth as last year. Can you discuss your backlog deployment forecasts? Have your expectations changed since May? I'm actually going to flip back to that slide if you just give me one moment here. Okay, here we go. What you can see, the light green that ends up at 195 megawatts, that is our estimate now. The kind of dark bluey-green color that leveled off at 187 is what we had announced previously. What you see here is in the coming quarters, if you kind of look there, the change is very marginal versus what we had forecast before. Actually, if you follow that chain along, you see the new forecast being above the prior one. A couple notes on that. One is, we actually did have one, approximately one megawatt project in Maine actually come in. We were expecting to hit NTP on that next year, and now we're hitting NTP on that, you know, give or take Labor Day or, you know, something like that, like pretty soon here. You know, things can move both ways. Obviously this is just our backlog, you know, the lime green versus the dark bluey green represents the increase in backlog that we've had since then. We also noticed that Q4 of 2024 has quite a big jump. There's a bunch of projects that are right on the margin of late 2024, and probably some will come in a bit, some will push out a little bit. That's a more material shift from where we saw things the last time we released results. I should touch on, like, for example, the light gray is the beginning of the year. We did have a decent amount of shifting out, and that was largely to do with the main project that we saw in Q1. We took a hit on megawatts in Q1. We talked about this in our Q1 results or our year-end results, I guess it was even. We saw a push out in timing, mostly based on delays by the utilities there. Hopefully that helps with a high-level summary of how things have tweaked since our last result. Our supplemental disclosure file, which can be found on our website, it does list out each individual project. For somebody looking to, you know, model things out themselves or what have you can look at more fine-tuned detail there. Which projects are expecting to hit NTP in Q4 2022? It's 21.7 megawatts in total. Yeah. Just, you know, again, if I showed that individual file, there's like so many lines it would be it might make people go cross-eyed. Through the end of the year, we have several projects in Maine. You know, we did close that $25 million project financing at the end of June. We have several projects in Maine that we expect to hit NTP on. Outside of that, there are some projects in both New York and Maryland that we expect to hit NTP on as well. Okay. With the, I think you might have touched on this before, but maybe it's good for a clarification. With the positive recent developments in the U.S. about solar tariffs and the Inflation Reduction Act, are there opportunities for you to accelerate your deployment activities? A couple of things. One is supply chains are normalizing, and that should help. I think it will be some time before we see that normalized. You know, we are seeing that lead to positive movement in our input costs as well. I think maybe the only probably other material thing to mention is that, you know, out of our backlog, the vast majority, you know, somewhere in the high 90s percentile, is projects that we have developed ourselves. Because of the strength of our platform and because we are like a true full lifecycle developer, right? We're out there originating, developing our projects, engineering them, getting them built, financing them and building up this operating portfolio. That stands out versus the vast majority of companies that we see in our space on a day-to-day basis. I mention that because there are a number of small developers who develop projects, and they don't have the financial capacity or overall kind of like financing wherewithal to finance those projects themselves. They're looking to flip those projects at around the time of NTP or before that. We see that as quite an interesting opportunity for us to scale up more quickly than just our organic development efforts by acquiring some of those projects. In essence, we're seeing levered IRRs, in essence, you know, above what we're targeting, and see that as being a really interesting accretive opportunity for us as well. Okay. What is your expectation for run rate EPC revenues in H2 2022 and into 2023? One thing I'll mention. Stephanie mentioned this in the prepared remarks a little bit, but on the one hand, the EPC revenue is, you know, like that's that out of our business lines, that's the one that we've really deprioritized, right? We have some key clients that we're building projects for them, et cetera. The real driver here, first and foremost, is building up our operating portfolio. That said, we are executing on some one-time revenue, right now. You know, the year-to-date number was modest, but there's $1.3 million of deferred revenue associated mostly with that business line. We point to that because that is going to, we expect, lead to an increase in that one-time revenue the second half of the year as milestones are met on those projects. Our next question comes from Josh McCullen from Westbury Capital Group. Could you please speak to the valuations you're seeing in the private markets for both projects and pure companies? Yeah. On individual projects, you know, in June, I think it was maybe when we hit NTP on our first main project. You know, we announced that that one was valued at $2.62 a watt. I think in prior times, we would often talk about numbers or more in the $2 per watt range. That right there is about a 30% increase in terms of what the market, in essence, is valuing these projects at. We also just reached, you know, the projects that we either reached commercial operation on recently or in the one case are just waiting on that transformer to be installed. Those ones were north of $3 per watt, so even higher. Those are New York City rooftop projects, so the revenue profile on those is higher than just about anywhere else in the country. It does speak to the kind of valuations you're seeing out there for these types of projects, and I think really speaks to the value that we're creating here as well. In the private markets, you know, I think that probably some folks on the call would say similarly that it can be hard in the private markets to find hard data on numbers being paid. There have been a number of transactions where like other developers have been acquired by infrastructure funds and other types of investors, utility companies and what have you. What we're hearing from folks who have approached us and other types of things is we're hearing numbers that are a multiple of where we're trading right now. We really feel like we have some work to do to explain to the market about all the value that we're creating because you know frankly we don't think that it's being accurately represented in the market right now. How will a higher ITC impact the final capital structure's cash flows for projects? Could you see lower debt, higher retaining cash flow from projects? Any expectations for magnitude? Yeah, you know, first off the top, you know, Like, let's use the assumption, you know, the ITC pre-IRA was a moving target, but let's use next year's 22% as the baseline. Let's assume, like, there is these different adders. It's not gonna be immediate, I don't think. In the coming years, we really expect that domestic content adder to become something that we can get in most cases. You're already seeing announcements from various parties about what they're doing to boost U.S. manufacturing. We do see that's going to be something that's possible. If I just used, as a representative example, moving from a 22% ITC to a 40% ITC, and this is ignoring the other adders that could increase that significantly. You know, right off the top, you're seeing almost a doubling. With the aspect of being able to sell the tax credits as opposed to maybe through a partnership flip, I think you could, you know, for sake of argument, use a doubling as an example there. In your capital stack, you know, you're getting twice as much free money in essence, right? You're getting this tax credit from the government promoting what we're doing. You know, what does that lead to? It leads to a combination for us of we could earn larger developer fees. We could take more cash out of the projects at commercial operation, and maybe we do that in the nearer future as the portfolio grows. It also gives us the opportunity to take less debt and have larger, you know, larger ongoing cash flows from these projects down the road as well. That's largely how we see things playing out in the more medium to long-term as well. Could you please speak to the factors that give you confidence in the timing of the milestones for your development backlog? Yeah. I'd say that we're... Number one is, you know, we've been in business for 12.5 years, and we're really focused on, you know, being good at what we do, and I think our track record speaks for that. Number two is that, you know, we've been providing more and more information in the prior quarters on things like our supplemental disclosure file, for example. And part of the education internally has been talking to our development team about, you know, the eyeballs that are on this. And putting some kind of fear of God into the team there to say, "Hey, like, we need to live up to these timelines." The tricky part is that development is variable. On that basis, there is going to be some variations here, right? Like for example, you know, a utility can have it on their docket to give you your interconnection agreement on, you know, for their July meeting. The next thing you know, it's not on the docket and it's to move to the August meeting, and you're one month behind where you're expected, just based on their own, you know, vacation schedules or whatever the case may be. There is variability in there, but if you back up and look at the overall portfolio and look at, I think, the conservatism in a lot of the things that we do, I think there's a lot of reason to be, you know, pretty pragmatic about the forecast that we're putting out there. Obviously we want to meet or exceed any guidance that we're providing. Is there any opportunity to utilize the new solar PTC versus ITC? If so, how large could the benefit be to UGE? What you're hearing is that utility scale projects probably will utilize the PTC more. On the mid-scale projects that we focus on, the way the PTC works is in essence it's a flat cents per kilowatt hour. It's earned over 10 years. If you think about it, if your cents per kilowatt hour is lower, then that PTC represents a bigger percentage increase to that. In essence, the lower your offtake rate, the more likely you are to use the PTC. Now, UGE, we specifically focus on larger offtake rates being focused on community solar, commercial PPAs, that type of a thing. On that basis, we do expect the ITC will be the primary incentive that we leverage. You know, we may see an opportunity here or there to use the PTC instead. Our next questions come from Alistair D'Souza. With the new bill, does it make sense to accelerate growth by increasing headcount at the expense of short-term cash flow? Or is the intent still to fund all growth from existing cash flow going forward? I'd like to understand how the new bill impacts your growth strategy. Yeah. I think it's a really, really good question. I mentioned in the prepared remarks, like this is a massive wealth creation opportunity for UGE and for the industry. I think that the numbers sometimes sound silly. If I use US dollars, you know, right now our market cap is in the range of $30 million. Just from our backlog as it currently stands, I'm gonna round off to like the nearest kind of hundred million type of thing. Like, the lifetime revenue from our backlog is currently in the range of like $1 billion. That's from the current opportunity here. Our gross margins on our recurring revenue, as we've seen are certainly north of 80%. We see an amazing opportunity to grow the company, to grow the value of the projects that we're developing, et cetera. You know, the question is, with this opportunity, do you put your head down and grow even more significantly and maybe put off that positive cash flow metric for a little bit longer? The you know, positive EBITDA metric for a little bit longer? It's a very good question. I think that we're still a little bit you know, strategically thinking through how best to take advantage of it. Certainly don't put it past us to say, you know, we want to grow even more further than our past goals have indicated. Does the new bill impact the NPV per megawatt of your projects? I believe you previously suggested it was $0.81 per watt. How do you expect that to increase? Yeah. The $0.81 per watt is an example in our deck. It's a representative example, in that $0.81 represents the difference between, in that case, it was our own calculated NPV, which is, as we've seen, conservative versus the CapEx of the project, right? At a high level, you know, we talked earlier about the size of the ITC and so on. This is leading to increased value of our projects and increased difference, if you will, between the CapEx of a project and the value of the project. Do you think this new bill gives you the ability to grow operating assets to 1 gigawatt and beyond in the next decade? We haven't put that number out there yet. But we certainly see our long-term future being in the gigawatt scale. IRA only helps us get there. Next question has come from Jeff Cowell. Is it fair to say that the slowest part of the development cycle is getting the interconnection approval? Yeah, for sure. There's a lot of other work that we do in the meantime, right? You see the shape of our backlog and there's, you know, there's this heavy weighting towards 3.1. In many cases, it might be a small number of months from the time that we move a project out of 3.1 to the time that it's in stage 5 in construction. That's one thing to consider. We've talked a little bit internally about, hey, maybe we can provide some more color to that progress that we're making within stage 3.1. Something that we'll consider down the road. If you just think about the, you know, the shape of our backlog table that we looked at earlier, and the number of megawatts we expect to hit NTP over, say, the next six months, you see there's a good number of projects that are currently in 3.1 that we expect to hit NTP on in that timeframe. Something to keep in mind as you're thinking about our progression. Is there anything in the IRA that can help actually drive the connection process? Not specifically, I would say. I think that there are, like, the Bipartisan Infrastructure Law includes a lot of money for upgrading the grid and so on, so there are some things like that. There's also, you know, the fact that interconnection upgrades are now eligible for the ITC. Maybe that allows us to make some quicker decisions. I will say outside of the IRA, FERC, the Federal Energy Regulatory Commission, they've been really driving towards, "Hey, how can we shorten interconnection timelines?" There is work being done within the industry. The IRA's impact on interconnection timelines itself, I would say is at the margins. As part of the new IRA, will tax equity still need to be validated by a third party? In terms of validation by a third party, that is something that we'll still want to do because the value of the ITC is still, you know, really kinda dependent on what the value of those projects is. It won't be for, I mean, hypothetically, we may still choose to do some tax equity, partnership flip type of arrangements in some cases. Although that's not our baseline assumption right now. But yeah, we would expect to still get those valuations. On page 8 of the MD&A, you state that a UGE project was valued at $3.03-$3.46 per watt. At what stage of the development cycle is that value given for? It is in essence along with closing project financing. In those cases that you just referenced, we actually had gotten those valuations several months ago. You know, I think as a standard practice going forward, I think what we'll try to do is when we declare NTP on a project like we did in Norway, Maine, we'll disclose what those valuations are. Do you still get inquiries from multiple buyers that have validated, offering to buy the company or products that have $3 per watt valuation? You know, I think there's two aspects to that question. I think, you know, I already referenced a little bit earlier, and I know I mentioned, I think it was on our Q1 webinar, we're in a very active space, and that's only increased with the passage of IRA here in the last couple weeks. Yeah. We are getting entities of various types contacting us about, you know, the value of UGE and their interest in owning it. You know, maybe, you know, I'll say nothing imminent in that respect. I think there's a lot of benefit for us being a public company and focused on what we do here. There's definitely a lot of interest there, and I do feel strongly that we're being valued at a steep discount to valuations in the private market for companies like ours right now. On the project side of things, yes and no. We've probably told people no so many times that we're not interested in selling our projects. Maybe people are reaching out to us a little bit less now, whereas kinda late last year, you know, we were still getting a lot of those reach outs more frequently. We have had some reach outs, and it certainly validates. Actually, maybe it goes beyond validating the valuations for these projects. There's a very healthy appetite to buy the projects that we're developing. Yeah. Okay. One more question from me, though, and then I think we'll wrap it up. Can you please provide us an update on what's going on with the in the Philippines? Yeah. Our U.S. market obviously has been growing so significantly, and our expectations for that just have increased with the passage of IRA and with our success even pre-IRA as well. That's really been the heaviest focus for the company. You know, how does that play into the Philippines? What we've decided to do more recently is instead of financing our own projects there, you know, we have some really good projects there in our backlog. We're under contract actually to have some other parties buy some of our projects there, and fund some of our backlog projects there too. In essence, what we're doing is we're really putting our chips on the US market right now and downplaying our exposure to the Philippines market. We have a great team there. Some of the folks in the Philippines have been playing important roles helping our US development team, for example, but that's the status there right now. Thank you, Nick. There are no further questions, so I'll now pass the call back to management for closing remarks. Yeah. Thank you everyone for dialing in today, and thanks for all the great questions. I know our contact information is up on this screen here, and we're always available for any questions that people have, and so please reach out at any time. You know, we're obviously very excited about where we go forward from here, and we'll keep our heads down and keep focused on building the business here, and really appreciate everyone on the call here playing a role in that as well. Thanks again, and thanks Marcel for hosting as well. This concludes UGE International's Q2 2022 conference call. Thank you for joining us, and enjoy the rest of your day. The webinar has ended. Thank you for joining. Goodbye.