Good morning, ladies and gentlemen, and welcome to the VOTI Detection Financial Results for First Quarter Fiscal 2021 Conference Call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you need assistance, please press star zero for the operator. This call is being recorded on Thursday, April 1st, 2021. I would now like to turn the conference over to Rory Olson, CEO. Please go ahead. Thank you, operator, good morning to all of you on the phone and on the webcast. Welcome to VOTI's fiscal 2021 first quarter results call. With me is Michael Ickman, our Chief Financial Officer. I'd like to remind everyone to please refer to our website at votidetection.com under the investor relations section to view our notice regarding forward-looking statements. On today's call, I will highlight our performance in the quarter, update you on our outlook for the current fiscal year, then Mike will take you through our first quarter numbers. When we spoke last month for our year-end results call, we gave you encouraging news about our outlook for the first quarter and our expectations for the current full fiscal year. I'm pleased to report that the quarter came in as previewed and in line with our guidance that we provided in February. We are also confirming our expectations for the full year. For the current fiscal year, we continue to forecast a return to pre-pandemic levels, both in sales and gross margins, resulting in expected positive adjusted EBITDA for the full year. That is, of course, barring any unforeseen negative impact or escalation of COVID-19. In addition, we're forecasting positive cash flow from operations for the full year. Looking at our first quarter results, our reported rev, CAD 6.3 million surpassed the pre-pandemic revenue reported in our fiscal Q1 2020 of CAD 6 million. It's also our highest reported quarterly revenue since the third quarter of fiscal 2019. We also saw a very significant rebound in our gross margins to pre-pandemic levels of 37%. Due to the success of our strategic and restructuring initiatives put in place in fiscal 2020, we were able to post positive adjusted EBITDA in this quarter. Since becoming a public company, it has been our plan to disrupt the X-ray scanning market. To this end, we have been actively developing and innovating with new technology, and we are now seeing the benefits of our technological innovations put in motion over the past two years. Two of our premier initiatives were the development of Voti INSIGHTS, our web-based platform for the centralized and remote management of VOTI Detection's XR3D scanners and our new MATRIX Series X-ray scanners. MATRIX Series represents the convergence between technological improvements, cost savings, and a push towards a SaaS model for high-margin repeat business. These two initiatives are already having an important impact on the company's performance, as can be seen in our deliveries in the first quarter. We delivered 167 security scanning systems, units to a wide range of global clients across a diversified base of sectors. We also saw the rebound of the sports and entertainment vertical. As you all know, two years ago, we initiated a strategic targeting of North American professional sports venues. The results have been extremely positive. VOTI scanners are now installed in 35 North American professional sporting facilities. Our latest installation was completed during this quarter. In January, we announced a partnership with Pacers Sports & Entertainment, an integrated sports and entertainment company with operations that include the Indiana Pacers, Indiana Fever, Fort Wayne Mad Ants, Pacers Gaming, Pacers Foundation, and operations of Bankers Life Fieldhouse. VOTI is providing an enhanced security and screening process for guests attending Bankers Life Fieldhouse events with the introduction of 15 VOTI MATRIX Series scanners installed in December of 2020 that are designed to X-ray bags and purses for guests entering the fieldhouse that eliminate the need for direct staff contact and expedite the entrance process. Additionally, the partnership means the Pacers are the first professional sporting team to leverage VotiI NSIGHTS, our analytics platform. In fact, the Pacers are the first one of the three-time customers for VotiI NSIGHTS in this quarter. It is important to note that there are still a number of very exciting verticals that we have identified on a global basis that we feel that we can penetrate over the next few years and will continue to add to our growth. With that, I'd like to turn it over to Michael to review our first quarter results. Michael, please go ahead. Thank you, Rory. Here are the financial highlights for the first quarter ended January 31st, 2021. Our revenues for the three-month period totaled CAD 6.3 million compared to CAD 6 million for the same period in fiscal 2020, an increase of CAD 282,000 or 5%. The increase was primarily related to three factors: the greater number of units sold, first-time sales of Voti INSIGHTS in the quarter, and the change in product mix being sold. During the quarter, the company sold 167 security scanning units compared to 148 during the same period in fiscal 2020. In addition, during the quarter, as Rory mentioned, the company began commercializing its MATRIX Series next-generation X-ray scanners. Gross profit in the first quarter increased to CAD 2.4 million, or 37% of revenue, compared to CAD 1.9 million or 32% for the same period in fiscal 2020. The five-point increase in gross margin compared to the same period in fiscal 2020 is primarily the result of the company's first-time sales of its Voti INSIGHTS analytics dashboard to three customers, the benefits of cost reduction initiatives, the increase in after-sales services, and revenue from extended warranties, partially offset by the product mix in certain scanner sales with lower margins. For the first quarter of fiscal 2021, adjusted EBITDA increased to CAD 503,000, compared to a loss of CAD 1.1 million for the same period in fiscal 2020. The increase of CAD 1.6 million was primarily related to the increase in gross profit, the decrease in operating costs, and funding received from the Canadian Federal Government COVID-19 CEWS program. Net loss in the quarter decreased to CAD 1.1 million compared to CAD 2.2 million in the same period of fiscal 2020. The decrease in net loss of CAD 1.1 million was primarily related to the increase in revenue and gross margin, reduction of operating costs, funding received from the CEWS program, and a decrease in non-cash share-based payments and changes in fair value of warrants expenses, partially offset by the increase in net financial expenses and depreciation and amortization expenses. Net cash from operating activities during the three-month period ended January 31st, 2021 increased by CAD 5.4 million when compared to fiscal 2020. The increase in net cash from operations is primarily due to the improvement in the company's cash-based operating results for the three-month period ended January 31st, 2021, and the positive impact of the change in the company's working capital. With regards to our forecast for the fiscal year 2021 and our expectations for a return to pre-pandemic levels, both in sales and gross margins, resulting in expected positive adjusted EBITDA for the full year, the factors that will allow us to successfully achieve these financial milestones in this current fiscal year include, among others, additional sales of extended warranties allowing the capture of recurring revenue as a result of an increased fleet of machines, sales of our VotiI NSIGHTS analytics platform, introduction of other new software solutions, and cost savings derived from several technological initiatives completed in fiscal 2020. I refer you to our latest MD&A released yesterday to get the full details on our first quarter performance. In the MD&A, you will also be able to view our discussion of risks, remedial actions related to the COVID-19 pandemic, as well as our outlook for fiscal 2021. With that, I will turn it back to Rory. Thanks very much, Michael. Like so many companies all around the world, the pandemic took a very heavy toll on our operations. Through the success of a combination of aggressive mitigating strategies and initiatives, we managed to emerge from 2020 as a much leaner and stronger organization than we were, I think, going into it. We've made several promises when we became a public company. I'm proud to say that despite the pandemic, I believe that we are and will be delivering on them. Not only are we delivering on them, they are a big part of the reason that we've been able to rebound so quickly in our fiscal 2021. It's a true testament to the hard work and dedication of the team, that we were able to emerge from a tremendous challenge that we faced throughout fiscal 2020 caused by this pandemic to report such a solid first quarter. We're very excited about the prospects for the fiscal year. We believe that the initiatives that we have taken, particularly on the cost-cutting front, along with the solid foundation that's been laid, our backlog and leading technology places us in a position to significantly grow our operations on a global basis over the coming years. With that, I will ask the operator to open up the line to analysts for whatever questions they may have. Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press the star followed by the one on your touchtone phone. You will hear a three-tone prompt acknowledging your request. If you are using a speakerphone, please lift the handset before pressing any keys. First question comes from Amr Ezzat at Echelon Partners. Please go ahead. Thanks. How are you, Amr? Hi, guys. Good morning, and congrats on a very solid quarter. Thanks. Thank you. My, my first one's on the gross margin, uh, very strong rebounds, um, quarter over quarter and year on year. Um, just going through your MD&A, it suggests that despite the strong performance, there were certain scanner sales with lower margins that hampered margins. So my question to you is, should we be reading in between the lines and, um, expecting and expect like higher numbers going forward for gross margins? Or am I reading too much into that comment? I think that, um, you know, the quarter's been, you know, what it is, and as you know, what goes into gross, there's a lot of factors that go into, go into gross margin. Um, and, um, the inventory being, uh, really a key and deciding factor. Um, I would say that, that, you know, netting out our gross margin, we, we see ourselves operating to a plan, um, you know, certainly maintaining the guidance of our gross margin range, which range between 32% and 36%. Um, but, uh, you know, we, we expect that we should be able to just consistently hit at that 35%, 36% gross margin level, um, you know, on the, in the aggrate, in the aggregate over the year. Great. Great. But if [audio distortion] down [Zamer]. For example, we sold three software licenses, right, uh, on a number of different machines. So they are specific to the MATRIX machine. So in Q1 we have that, and we got it. In Q2, there are no MATRIX machines being sold, therefore, no software is gonna be sold. But we will have other sales that are certainly could be of a higher margin. And so in the aggregate, over the year, we are gonna sell additional software, and we are gonna sell, uh, you know, our additional hardware at, um, uh, solid gross margin. So, you know, we look at it, and on the average, that's what we can look to expect. Does that answer? Okay. Yeah, that's great color. Let's just like stay on the expense side, like very strong execution on operating expenses as well. You're down CAD 1 million year-on-year. Aside from the CAD 400,000 that Michael mentioned of CEWS, are there any special items in your OpEx number on a consolidated basis? Like, should we look to model this number going forward at the same sort of pace of your Q1s? Okay. So let's, t o be clear, we slashed an awful lot of, um, people. Uh, and we have the need, without question, to bring back people in order to execute on a lot of our, uh, tactical, uh, R&D initiatives. That's a fact. And then as we grow and quality becomes a significant factor, we have to bring in people who can do quality assurance of components coming into the site so that, um, you know, we are more efficient in terms of what we receive from, um, uh, suppliers. Uh, so, you know, there is gonna be, you know, i n our operating plan, we have kinda modeled in some increases. Now, is it gonna go back to what it was? No, it won't. Mike, do you, would you like to add any color to this? Yeah. So, I mean, just first to qualify it, we had about approximately CAD 300,000 in CEWS that hit our OpEx number. So out of the CAD 1.1 million, there was CAD 800,00, uh, difference, uh, related to OpEx. I think Rory characterized it well in terms of, um, the type of personnel expenditures. Uh, some we are, we are, we will be bringing in an increased amount of personnel, uh, over the year. Um, there were some additional, uh, cost initiatives at the first part of, uh, of Q1, um, that I won't repeat, but that's not a very huge part. Uh, there's a little bit of costs that we were expecting to spend in Q1 that will likely be spent in future quarters. But for the most part of that CAD 800,000 is, uh, is cost reduction initiatives. Absolutely. Okay. Okay, that's great. So, uh, so you'll be adding selectively, but you still expect to be EBITDA positive. I, I understand. Um, okay, um, Rory, I know the quarter-to-quarter, um, sales can be very lumpy, uh, but do you care to venture in giving us any insights, um, or color on how we should expect sales to evolve, um, over the balance of the fiscal year? Do you guys like see like a lot of this lumpiness or anything to expect for now, or how do I think about that? So, you know, here's what I, what I will comment on. We're still, um, I was, I was gonna give you, uh, proper guidance or can, you know, what I would say is, is reasonable guidance, uh, last month because really the quarter had, was just about over. Uh, please note that we are only two months into our quarter. We have all of April left. And so it's, you know, obviously difficult. All I can tell you is we are, um, very pleased with where we are. Um, uh, we are subject to the vagaries of the, uh, you know, transportation and logistics. Um, you know, blockages in the Suez Canal, uh, will that, uh, impact us? We think it could, might in a, in a minor way. Um, but, you know, based on a lot of those types of things and based on my inability to, to really tell you, yes, with a 100% certainty, I'm gonna be able to deliver, uh, these machines, uh, it's not possible with a month left to go in the quarter. Uh, I would say to you that internally, I'm not losing sleep over where we are. I'm actually feeling very good, uh, about where we are to date in this quarter. Um, and, uh, you know, as I say, I reiterate that for the, uh, entire year, um, based on what we have as, uh, backlog in terms of POs in hand, uh, in terms of our sales pipeline, um, and our sales pipeline is divided up in by probability. Uh, its growth has been quite strong. We are fully, fully expect to be back to pre-pandemic levels in the year. How that's gonna play out, you know, plus or minus, uh, X amount of dollars in a quarter, I can't really, uh, comment on, um, till we get further along in the quarter. Is that fair? Yes. That's pretty good color. Then, uh, one last one, I'll pass the line. I just have, I guess, like on VotiI NSIGHTS, um, congratulations, first of all, like, uh, first sales to three customers. Um, how do I think about that, like long term? You know, like, is it a case where you guys feel you could upsell um, anybody that's gonna go for the MATRIX Series, um, to sign up for VotiI NSIGHTS or what sort of penetration, I guess, uh, can you get? Okay. Or do you feel that you can get? So we expect, uh, you know, we're still selling, uh, on the, on the Windows side, um, because there are certain elements that are not present, uh, in the, um, uh, MATRIX Series in, on the Linux system that are present on Windows, which are necessary. We expect to have those, uh, developed and deployed, rolled into the market by Q3, Q4. End of Q3, middle of Q4 of, uh, this year. Uh, so going forward, uh, into, you know, 2022, the latter half of 2021, 2022, all of our 60x40 tunnel size sales, uh, should be, uh, done on MATRIX. With that, um, that allows us to upsell the, um, Voti Insights platform, and it is upsold to people who are buying multiple scanners so that they can view, um, either the scanner, what the, what the operator is seeing or the health of the machine, uh, if the machine is in a different country or if the machine is in a different place in a big building. That kind of thing. So that's what we see happening going forward. Great. Thanks. I'll pass the line. And congrats again. Thank you. Thank you. The next question comes from Neal Gilmer at Haywood Securities. Please go ahead. Thanks. Good morning, Neal. Good morning. How are you doing today? Well, thank you. How are you? Good. Um, listen, a number of my questions were just covered, but one of the things that caught my attention in your prepared remarks, Rory, was, um, your comment with respect to sort of three other verticals that you feel that you can penetrate over the next couple of years. Just wondering whether you can tease us a little bit on what the nature of those verticals are and when, you know, the timeframe of the couple of years. Is that something that, you know, if the stars align, we could start to see that this year, or it's more really of a 2022 story? No, I think it's a, in some cases, it's a back half of 2021, where we, you know, are either in the middle or about to deploy pilot projects to a couple of different verticals that we think can be very lucrative for us. If those pilot projects go well, we can expect that to have a significant impact, you know, later in 2021, but certainly in 2022. We have not modeled any significant impact for any of it in terms of our return to pre-pandemic levels of CAD 28 million or so. If we do get, do something, in others of these verticals, it certainly will be upside to our projection, but we currently look at it as really back half of 2021 and into 2022. Okay. Is there, you know, any particular geography that these verticals are focused on or, you know, any other commentary on that? Well so, you know, I mean, it is worldwide, right? Okay. In one instance, it's gonna be, you know, primarily in North America. In the other instance, it's geographically diversified by base. Okay. That's helpful. Yeah. Listen, I think most of my other questions were answered, and obviously we just spoke about a month ago, um, on the prior conference call. So I think that sort of covers it off for me. Thanks very much for your time. Thank you. Thanks, Neal. Thank you. There are no further questions. I will now turn it back over for closing comments. Thanks very much. Um, as you can see, fiscal 2021 is off to a very solid start, and we look forward to sharing all developments and progress with you throughout this year on calls like this. Thank you for your interest in VOTI. Both myself and Michael are available at any time to answer any questions that any of you have. Please stay healthy, uh, and stay safe. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating, and we ask that you please disconnect your lines. Enjoy the rest of your day.