Good morning, ladies and gentlemen, and welcome to the VOTI Detection financial results for second 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 Wednesday, June 30th, 2021. I would now like to turn the conference over to Rory Olson. Please go ahead. Thank you very much. Good morning to all of you on the phone and on the webcast. Welcome to VOTI's fiscal 2021 second quarter results call. With me is Michael lckman, 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, and then Mike will take you through our second quarter numbers. I'm pleased to report that our second 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 return to pre-pandemic levels both in sales and gross margins, resulting in an expected positive Adjusted EBITDA for the full year. That is barring any unforeseen negative impact or escalation of COVID-19, or a negative impact from the worldwide supply chain and logistics challenges that have arisen due to the reopening of the global economy. In addition, we are forecasting positive cash flow from operations for the full year. Looking at our second quarter results, we posted a 38% increase in revenue to reach CAD 5.9 million. We continue to benefit from a rebound in sales as a result of the reopening of the global economy post-pandemic. The improvement that we're registering is also the result of the success of the company's strategic and restructuring initiatives put in place in fiscal 2020. As you know, we were extremely proactive in putting in place mitigative strategies to deal with the impact of the pandemic, and we are definitely benefiting from these initiatives now. In the second quarter, we delivered 178 scanners, to a wide range of global clients across a diversified base of customers. We continue to make important inroads into the sports and entertainment vertical, with additional installations of our scanning systems in professional sports arenas throughout North America. As well, in the quarter, we were very successful in booking sales to both state and local governments in the United States. This is another very important vertical that offers great growth potential over the coming years. Of particular note is the wide distribution of sales in the second quarter. As a matter of fact, in the quarter we registered the widest distribution of transaction in the history of our company. We see this as a very positive indicator for our growth going forward. 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 continuing to see the benefits of our technological innovations put into motion over the last two years. Two of our premier initiatives were the development of VotiINSIGHTS, our web-based platform for centralized and remote management of VOTI Detection's 30 scanners, and our new Matrix Series X-ray scanner. The Matrix Series represents the convergence between technological improvements, cost saving, and a push towards a SaaS model for higher margin repeat business. These two initiatives, along with the pent-up demand for our product following the pandemic, have resulted in a solid revenue backlog currently in place. The backlog is also benefiting from the future sales of extended warranties, another benefit of having a larger number of machines in the field. It is also important to emphasize that there are still a number of very exciting verticals that we've identified on a global basis that we feel we can penetrate over the next few years. We are hard at work on developing these markets, and I will keep you posted with updates as we make progress. In conclusion, as I mentioned, our second quarter results position us to meet our targets for the full year. We still have to navigate certain headwinds over the coming months related to currency exchange rates and worldwide supply chain and logistics challenges resulting from the reopening of the global economy. We are monitoring these factors very closely and putting in place mitigation strategies to ensure that we maintain our momentum. With that, I'd like to turn it over to Mike for a review of our quarterly results. Thank you, Rory. Here are the financial highlights for the second quarter ended April 30th, 2021. Revenue for the three-month period ended April 30th totaled CAD 5.9 million compared to CAD 4.3 million for the same period in fiscal 2020, representing an increase of 38%. The increase is primarily attributed to the greater number of units sold as well as the increase in the average selling price per scanner resulting from the change in product mix sold, and this was partially offset by the decrease in the U.S. dollar foreign exchange rate. For the six-month period ended April 30th, 2021, revenues totaled CAD 12.2 million compared to CAD 10.3 million, representing an increase of 18%. Again, the increase is primarily attributed to the greater number of units sold during the period, an increase in the average price per scanner, resulting from the change in product mix sold, the first time sale of our VotiINSIGHTS fleet management and analytics dashboard in Q1, and an increase in service-related revenues. This again is partially offset by the decrease in the U.S. dollar foreign exchange rate. We delivered 178 security scanning units in the second quarter compared to 147 units in 2020, bringing the total number of units sold for the six-month period to 345 compared to 295. Gross profit in the quarter increased to CAD 1.8 million compared to CAD 1.4 million in fiscal 2020. Our gross margin decreased to 31% compared to 32%. And the 1% decrease in gross margin is primarily the result of a change in product mix sold, partially offset by the benefits of cost reduction initiatives. Gross profit for the six-month period increased to CAD 4.2 million or 34% of revenue, compared to CAD 33 million or 32%. That 2% increase in gross margin is the, primarily the result of the company's first time sale of VotiINSIGHTS, the benefits of cost reduction initiatives, and the increase in after-sales service and revenue from extended warranty, partially offset by certain sales, with lower margins. Net loss in the second quarter increased to CAD 2.9 million compared to 349,000. The increase in net loss is primarily related to the increase in the non-cash change in share value of warrants and embedded derivatives expenses, share-based payments expenses, accretion expense, foreign exchange loss, and net operating costs, partially offset by the increase in gross profit. Net loss for the six months increased to CAD 4 million compared to CAD 2.6 million in fiscal 2020. The increase in net loss is primarily related to the increase in financial expenses and change in fair value of warrants and embedded derivatives expenses, partially offset by the increase in revenue and gross profit, funding received from the CEWS stimulus program, and a decrease in operating expenses. Now, for adjusted EBITDA, the second quarter improved to - 711, 000 compared to - 941, 000. The improvement is primarily related to the increase in gross profit, partially offset by an increase in net operating expenses. Adjusted EBITDA for the six-month period improved to -CAD 208,000 compared to -CAD 2 million. The improvement of CAD 1.8 million is primarily related to the increase in gross profit and funding received from the CEWS stimulus program and a decrease in operating expenses. Net cash from operating activity during the six-month period ended April 30, 2021 increased by CAD 5 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 six-month period ended April 30, 2021, and the positive impact from the change in the company's non-cash working capital. Just a quick note on the successful financing that we completed shortly after the end of our second quarter. On May 6, 2021, the company completed a brokered private placement of 10.2 million units at a price of CAD 0.42 per unit for aggregate proceeds of CAD 4.3 million. Each unit consisted of one common share of the company and one half of one common share purchase warrant, which entitles its holder to acquire one common share at a price of CAD 0.55 per share for a period of 36 months. In addition to that, on May 13th, the company signed share for debt agreements whereby it exchanged existing convertible debenture units at their undiscounted cash value of CAD 3.6 million for common shares at CAD O.42 per share with the issuance of CAD 4.3 million warrants, each of which entitling its holders to purchase one common share at a price of CAD 0.55 per share for a period of three years from the date of closing and settle the accrued interest by issuing common shares at CAD 0.52 per share. This resulted in the cancellation of 3,640 convertible debenture units for total consideration of CAD 8.9 million and CAD 4.3 million newly issued common shares and warrants, respectively. Following the closing of the transaction, only 300 convertible debenture units representing an undiscounted cash value of CAD 300,000 remain outstanding. I refer you to our latest MD&A released yesterday to get the full details on our second quarter performance. In the MD&A, you will also be able to view our discussion of risks, remediative actions related to the COVID-19 pandemic, as well as our outlook for fiscal 2021. With that, I will turn it back to Rory. Thank you, Michael. Like so many companies around the world, the pandemic certainly took a heavy toll on our operations. Through the success of a combination of aggressive mitigating strategies and initiatives, we emerged from 2020 as a much leaner, stronger organization than we were going into it. I want to reiterate the fact that it's a true testament to the hard work and dedication and sacrifice of our team that we were able to emerge from the tremendous challenges that we faced throughout fiscal 2020 caused by the pandemic. To report a solid first half of the year resulting from a rebound in sales of our machines is pretty extraordinary. We remain confident about the prospects for the second half of the fiscal year. We believe that our technology and the solid backlog in place positions us very well for continued growth on a global basis going forward. With that, I will ask the operator to open up the line for questions. Thank you. Ladies and gentlemen, we will now take questions from financial analysts. Should you have a question, please press star one on your touch-tone phone. You will hear a three-tone prompt acknowledging your request. If you are on a speakerphone, please lift the handset before pressing any keys. First question comes from Neal Gilmer at Haywood Securities. Please go ahead. Yeah, good morning. Thanks, guys. Congrats on the quarter. Morning, Neal. Morning. Yeah. Morning. Rory, maybe I'll start with you, with respect to one of the comments you made in your prepared remarks, I think it was also in your MD&A with respect to, it was the sort of the widest distribution that you've had in the history of the company. Yeah. Can you comment a little bit maybe on the sales mix? 'Cause, you know, obviously, and I was certainly wasn't expecting this, it's not the highest revenue quarter you've had in the history of the company. Are the dynamics in place as far as just sort of different sales mix and, you know, Maybe a little commentary on what the foreign exchange rate might be doing as far as impacting the, you know, the reported results in Canadian dollar sales? Sure. We have been moving on a quarterly basis over the last number of quarters to steadily increase our distribution so that we are less reliant on one or two deals to make a quarter, and that we are starting to see a volume, a greater volume of more transactional revenue. You know, the deals that are, like, three units, five units, eight units, two units, as opposed to deals that are, you know, 60 or 100 units. It really means that that part of our business is much healthier, and it serves as a baseline. When we do have the big wins, they really move the needle. We don't need big wins necessarily to make a quarter. We think that's a very significant achievement. Does that answer that part of your question? Yeah, it does. Thank you. As far as FX goes, you know, when we originally, you know, looked at our plan, it was last year, and, you know, we obviously were dealing with a, you know, foreign exchange rate that was, you know, substantially higher than it is today. Yeah. We have a natural hedge in place in that we sell in American dollars, and we buy components in American dollars, but our entire, you know, infrastructure in Canada is in Canadian dollars. There's certainly the impact of that exchange rate will be felt specifically as it relates to that. Thank you. That's helpful. It actually sort of maybe in a, in a way leads into my next question, with respect to gross margins. At 31% in the quarter, you know, was a slight change from last year. A little bit of a dip from the prior quarter Q1. How should we look at that going forward? 'Cause I know that last year is sort of a tough comparable because of the pandemic and the related impact there. The prior year, you're sort of in the mid-30% range. You know, do we see that going back towards that mid-30% range on a more consistent basis, or is some of that FX, you know, impacting the gross margin line? Sounds like it wouldn't impact it since you have that natural hedge in place. Just trying to understand the moving parts on gross margin there. As far as gross margin goes, we did not sell any Matrix units in the quarter. Those are the units that do drive our software revenue. Last quarter, we had some healthy software revenue in place that we received and therefore resulted in higher margins. As we move forward, we do see a greater deployment of our Matrix units and with that, the thesis of selling our software as well. We are very comfortable with the thought that we should be in the mid-30s. Okay, thank you. If I can sneak in one more, if you don't mind. Back to your answer to my first question there with respect to, you know, the wider distribution. In future quarters, would that, you know, lead towards more sort of after-sale services and a little bit more of what, you know, I sort of guess in my head think of as recurring revenue? Well, in terms of after-sales revenue, I mean, you're talking specifically as to service. That's a function of warranties, you know, machines coming off the warranty in the field. Certainly as we grow the number of machines in the field, the impact is going to be positive with respect to, you know, deriving after-sale revenue. That's really more warranty specific than it is. Okay. Yeah. Okay. Yeah, Neal, if I could, if I could add some color, to what you're trying to get at is, I mean, we sold one point four million dollars during the year to date of extended warranties, some of which are for the year and some of which are on a five-year basis. in Q3, we have about CAD 650, 000 of, of a backlog related to extended warranties, so five-year extended warranties. So we could see the momentum that we've had, over the past couple of years, and it's pretty significant. Okay. Thanks, guys. I appreciate you taking my questions. Thanks, Neal. Thank you. Thank you. The next question comes from Mike Stevens at Echelon Capital Markets. Please go ahead. Hi, Mike. Hey, Mike. Hi, good morning, guys. Good morning. I'm calling in on behalf of Amir Zaidi, and I'm just curious the supply chain and logistics issues that you guys are seeing with the reopening. J ust wondering if there's any more insight you guys could provide and perhaps the some of the mitigation strategies you're putting in place. So I mean, effectively, you know, our the shipping lanes and the shipping times have increased from six weeks to about 12 weeks. Which is obviously really means that, that from a timing perspective, we have to kind of navigate around that, to make sure we have our products and the, really the frames that we get in Asia, on a just-in-time basis so that we can, you know, meet the quarterly demand. In addition to that, you know, there's obviously, you know, greater demand in terms of supply chain, which you know, kind of, you know, could choke us up a little bit in terms of, you know, receiving the necessary components. The mitigating strategies that we've done is we're forward ordering further in advance to be able to mitigate for the shipping delays. Further out, we expect that throughout the year, you know, we're gonna see some back to normal, but we expect shipping delays will be there for the next 12- 18 months at a minimum at this point in time. The entire ecosystem has gone through something that's quite traumatic and it's gonna take its time to revert back to the mean. Effectively, you know, in virtue of the fact that we've been able to do this capital raise, we have the capital on hand to be able to forward order components, so that we can meet the quarterly demand. That's not to say that, you know, there are not going to be times when we just, you know, will suffer other delays that may impact the quarter. Great. That's, that's helpful. You touched on the gross margin a little bit. I'm just, wondering how much would you attribute the drop from Q1 to, VotiINSIGHTS? I don't know if you can offer any color on that. Mike, would you be able to offer the. Yeah. Yeah. I mean, we sold VotiINSIGHTS in Q1. We did not sell VotiINSIGHTS Q2, that has a significant impact on the gross margin just off the bat, as well as the sales of Matrix Series scanners. There's the product and geography mix. That has an impact as well. Depending on the vertical, depending on the product, depending on the customer, depending on the geography, will have an impact on the margin as well as the components that we're selling with it or the accessories or whether there's freight involved. There's a whole myriad of differing situations that can lead to a change in gross margin. So to say that there was one specific reason for that drop, I would say the biggest contributing factor was the VotiINSIGHTS. Okay, thanks. Last one, if I may, on your backlog. You touched on some of the details as to the strength of it. I'm just wondering, how would you say it compares to pre-pandemic levels at this point? I would say that it, it is favorable, if I were to characterize it. It's favorable and positive over, you know, prior years. Okay, great. Thank you very much, guys. Have a good one. Thanks a lot. Cheers. Thank you. There are no further questions on the line. You may proceed. Thank you. So thank you, everybody for dialing in and, for participating on the call. Both myself and Michael are always available at any time to answer any, uh, other questions that any of you may have. And in the meantime and until the next call, please stay healthy, safe, and have a great summer. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating, and we ask that you please disconnect your lines.