Good morning, ladies and gentlemen, welcome to the VOTI Detection financial results for third 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 require assistance, please press star zero for the operator. This call is being recorded on September 29th, 2021. I'd now like to turn the conference over to Mr. Rory Olson. Please go ahead. Thanks very much, operator, and good morning to all of you on the phone and on the webcast. Welcome to VOTI's fiscal 2021 third quarter results call. With me is Michael Ickman, our Chief Financial Officer. I would 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 the call today, I'm going to highlight our performance in the quarter, update you on our outlook for the current fiscal year, then Mike will take you through the third quarter results. Our third quarter and year-to-date performance has been a success on many levels. Your management team is very proud of the company's sales volume of X-ray scanning systems and after-sales service, as well as its development activities. The unexpected intensity of the fourth wave of the COVID-19 pandemic has caused our recovery to be a bit slower than initially expected. We still have been able to post a 45% increase in revenues and positive adjusted EBITDA for this quarter. We continue and will continue to benefit from the significant efficiencies, and initiatives that we implemented in 2020. As cautioned in our second quarter release, in addition to the slow recovery, our company, like most other industries, has been impacted by the COVID-led global supply chain disruptions. Massive dislocations are evident within shipping routes and all other forms of transportation and warehousing have been impacted. We have been diligent, however, in mitigating the risk of shortages of key manufacturing components, order backlogs, delivery delays, and the increase in transportation costs by pre-ordering certain long lead time items and components and prioritizing logistics and inventory management functions within the business. Given these circumstances, we will not be able to meet our initial expectation of reaching pre-pandemic sales by fiscal year-end, which will also impact our ability to achieve positive adjusted EBITDA and positive cash flow from operations for the year. This does not take away, however, from the strength of our success in the current fiscal year, given the return of strong sales volumes of our X-ray scanners and the benefits of our development activities. It is important to note that we are not talking about any lost revenue, just delays in recognizing revenue. We are looking at continued growth into fiscal 2022 and are buoyed by the strong demand that we are seeing for our scanners, software, and our training modules. The strength of the company's margins resulting from the introduction of new products, as well as the continuing wide and growing distribution of transactions, position VOTI for solid, sustained growth going forward. In the third quarter, our company delivered 170 security scanning systems to a wide range of global clients across a diversified base of sectors versus 95 sold in Q3 of fiscal 2020, representing an increase of 79%. We continue to make important inroads into the sports and entertainment vertical, and we continue to build on our successes with both state and local governments in the U.S. On September 23rd, we announced the signing of a new three-year agreement with the Office of the United Nations High Commissioner for Refugees. That's the UNHCR. VOTI signed the original agreement with UNHCR in 2016. Under the previous contract, VOTI delivered 32 scanning systems over the course of the three-year period. The new three-year contract contains an option to extend for an additional two years. The estimated annual requirements under the new agreement are for 15 X-ray scanning systems per year. The UNHCR has been in operation for over 70 years and currently operates in over 132 countries. The organization is charged with protecting and assisting refugees around the world. The UNHCR is a very prestigious global agency, and their decision to put their trust in VOTI for perimeter security is a tremendous vote of confidence in not only the high level of quality of our products, but also our global servicing capability. We look forward to continuing to build on this important relationship. Lastly, I'm extremely pleased with the success we have had over the past couple of months in adding significant strength to our leadership team. As part of VOTI's strategic initiatives focused on operating excellence and growth on a global scale, over the past two months, the company has significantly strengthened its executive leadership team with the hiring of three senior executives. This addition of these three individuals is a game changer for the company, representing improving and bolstering our operating, engineering, and sales capability. All three of these seasoned industry veterans saw the potential in VOTI's growth trajectory and were anxious to be part of our disruption of the X-ray scanning industry. Daniel Menard is our first-time ever Chief Operating Officer. Daniel is a seasoned senior executive with more than 35 years of management experience. As Chief Operating Officer, Daniel will have the primary responsibility of leading the company's day-to-day operations. Daniel's extensive operating experience and overall capabilities have already made a very significant impact on our day-to-day operations since joining the company this past summer. Bali Panesar, our new VP of Product Management, New Product Introduction, and the current interim VP of Engineering. Bali brings over 24 years of product development and engineering experience in this X-ray industry, 17 years of which were with one of VOTI's major competitors. Bali's hiring is a considerable coup for VOTI. His addition will immediately improve and enhance VOTI's capability in all of the above areas. Lastly, Richard Coombs as our Vice President of Global Sales. Richard has 25 years of experience, having held sales leadership roles in the security industry and spent the last five years at the largest competitor in the industry. Richard's vast experience and successes in building winning sales teams and strategies for some major competitors will immediately benefit our sales effort on a global basis. I'm looking forward to working with this new leadership team and moving our growth agenda forward as we build on the strong foundation in place. With that, I'd like to turn things over to Mike for a review of our third quarter results. Mike? Thank you, Rory. Good morning, everyone. Here are the financial highlights for the third quarter as of July 31st, 2021, with a comparison to the same respective period in 2020. Revenue for the quarter totaled CAD 5.6 million, compared to CAD 3.9 million in 2020, an increase of CAD 1.7 million or 45%. The company sold 170 security scanning systems, compared to 95 in 2020. The increase in revenue is primarily attributed to the greater number of systems sold, partially offset by a decrease in the average selling price per scanner, resulting from the change in product mix sold and a decrease in the US dollar foreign exchange rate. Revenue year-to-date totaled CAD 17.8 million, compared to CAD 14.2 million in 2020, an increase of CAD 3.6 million or 26%. The company sold 515 security scanning systems compared to 390 during the same period in 2020. That increase is primarily attributed to the greater number of systems sold. The company's first-time sales of its VotiINSIGHTS fleet management and analytics dashboard, an increase in the average price per scanner resulting from the change in product mix sold, and an increase in after-sale services and extended warranties, partially offset by the decrease in the US dollar foreign exchange rate. Moving on to gross profit. Gross profit for the quarter increased to CAD 2.2 million or 38% of revenue compared to CAD 1.2 million or 32% of revenue in 2020, an increase of CAD 923,000 or 6% of revenue. The increase in gross margin of 6% is primarily due to a decrease in the average component cost per scanner resulting from the cost reduction initiatives that were executed by the company, partially offset by a decrease in revenue from after-sale services and extended warranty as a percentage of overall revenue, which carry higher margins, and an increase in freight costs allocated to inventory being sold. Gross profit year-to-date increased to CAD 6.3 million or 36% of revenue compared to CAD 4.5 million or 32% in 2020. The 4-point increase in gross margin is primarily due to a decrease in the average component cost per scanner, the company's first-time sales of its VotiINSIGHTS fleet management and analytic dashboard, and the increase in after-sale service revenue from extended warranty, partially offset by an increase in freight costs as well as certain scanner sales with low margins. Moving on to net loss. For the quarter, it decreased to CAD 1 million compared to CAD 1.9 million in 2020. The decrease in net loss of CAD 936,000 is primarily related to the increase in gross profit, a decrease in net financial expenses, general and administrative expenses, non-cash share-based payment expenses, and the increase in non-cash gains from change in fair value of warrants, partially offset by an increase in research and development and selling and distribution expenses, and the decrease in non-cash gain from changes in fair value of embedded derivatives. Net loss year-to-date increased to CAD 5 million compared to CAD 4.5 million in 2020. The increase of CAD 505,000 is primarily related to an increase in loss and change in fair value of embedded derivatives and warrants and an increase in net financial expenses and research and development expenses, partially offset by an increase in gross profit, a decrease in non-cash share-based payment expenses, and a decrease in general and administrative expenses, selling and distribution expenses. Adjusted EBITDA for the quarter increased to a positive CAD 112,000 compared to a negative CAD 410,000 in 2020. The increase of CAD 522,000 is primarily related to the increase in gross profit, partially offset by an increase in net operating expenses. Adjusted EBITDA year-to-date increased to negative CAD 95,000 compared to negative CAD 2.4 million in 2020. That increase of CAD 2.3 million is primarily related to the increase in gross profit and a decrease in net operating expenses. Moving on to net cash. Net cash from operating activities year-to-date increased by CAD 2.9 million compared to fiscal 2020. That increase is primarily due to the improvement of the company's cash-based operating results for the nine-month period ended July 31st, 2021, and the positive impact from t he change in the company's non-cash working capital. I also want to highlight one other recent development. As you know, the company has a CAD 3.65 million term loan with Espresso Capital, whereby a CAD 1 million tranche was to be repaid over a 12-month period and the balance due on June 30th, 2022. On September 27th, the agreement was amended to postpone the commencement date of the 12-monthly installments required to settle the CAD 1 million tranche to December 31st, 2021, and to extend maturity date of the balance CAD 2.65 million from June 2022 to July 2023. In addition, the working capital covenant was replaced with a minimum tangible net worth covenant of CAD 1 million. I refer you to our latest MD&A released yesterday to get the full details on our third 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 revised outlook for 2021. With that, I will turn it back to Rory. Thanks very much, Michael. It's obvious that the pandemic took a very heavy toll, not only on our operations, but on the operations of businesses worldwide. Through the success of a combination of aggressive mitigation strategies and initiatives, we emerged from 2020 as a much leaner and stronger organization than we were going in. While the recovery has been somewhat slower than we originally anticipated, 2021 has produced significant improved results, and we are looking for continued strength into fiscal 2022. There's no question, though, that the development that will produce the most long-lasting impact on the company is the strengthening of our leadership team. I know that this will be a game changer for VOTI and propel us to the next level of growth. Leading the charge will be our new COO, Dan Menard, who joins the company following an impressive 35-year career as a senior executive, and with some of the most reputable companies in the security industry. With that, I would ask the operator to open the line for questions. Thank you. Ladies and gentlemen, we will now begin the question and answer session. If you have a question please press star followed by one on your touchtone phone, you will hear a three-tone prompt acknowledging your request and your questions will be pulled in the order it is received should you decline from the pulling process please press star followed by two and if you are using a speaker phone please lift your handset before pressing any keys. Your first question comes from Amr Ezzat with Echelon Partners. Please go ahead. Good morning, Rory and Michael. It's Michael Vaccarino on behalf of Amr. Thank you for taking my question. Oh, good morning to you. Good morning. Thank you. On your revised guidance, can you give us a sense of how discussions with your clients are evolving relative to a few months ago? At what point would you expect to hit pre-pandemic sales levels? Is that a first half of fiscal 2022 event? Our discussions have been very robust. More robust, frankly, than they had been even in pre-pandemic times. The expectation is that our full recovery or a full recovery to pre-pandemic, it was probably delayed by a couple of quarters, and that our visibility into the first half of next year really indicates that we should be back there then. At the end of the day, we still have grown our top line by over 25%. Yes, granted, it's not close to the original 50% that we had estimated, but a lot of things have happened that really took a bit of a toll. By no means have any orders been lost. By no means have discussions ceased or anything like that. As I say, in fact, discussions are more robust than ever. Thank you for that. Very encouraging gross margins as well. Can you give us a high-level commentary on what we should be expecting looking at your next fiscal year? Are these levels sustainable? Yeah, the levels are sustainable. We talked at the beginning of the year of rolling out our MATRIX series. Our MATRIX series in the 60/40 tunnel size really is a significant driver for us. We were able to significantly reduce our overall cost on that machine, and that has contributed handsomely to better gross margins. Also, as Mike indicated, the sale of our VotiINSIGHTS software, both of those areas are going to only serve to increase as we move away from the Windows operating platform. We will benefit more from the Linux-based platform upon which MATRIX has been built as well as VotiINSIGHTS. Okay. Also, R&D is up substantially from last quarter. Even if we exclude the severance costs incurred during the quarter, can you speak to some of the things you're working on and how we should expect R&D expense to evolve over the next couple of quarters? Understand that in the early days of the pandemic, we did some very significant cutting. One of the areas that got very significantly cut was our engineering team. It obviously created a lag for us, but it was all about survival at the time, we had to do what we had to do. In the quarter, we rehired many of the engineering positions that we had, albeit in a leaner, more efficient manner. We needed to do so in order to successfully launch and conclude on many of the different engineering from a software and hardware perspective that we have been working through. We expect that our engineering team is in good shape. There's a few more other different hires that we may desire making. We may be hiring, as opposed to an interim head of engineering, a permanent head of engineering. All that's kind of up for discussion at the moment. Okay. Lastly, how should we think about your capital structure going forward? You had raised some money but didn't pay back debt completely. Any thoughts you can provide on that? Yeah, sure. As Mike indicated, we will be paying down, on an amortized basis, the first CAD 1 million and continue our operations. As we move to those pre-pandemic levels of revenue with the efficiencies that we've created in the OpEx line, as well as the increase in gross margins, we expect to have some positive cash flow. That when the CAD 2.6 million term comes due in July of 2023, we will work to pay that down on an amortized basis as well. Okay, great. Thanks for answering my questions. I'll pass the line. My pleasure. Thank you. Your next question comes from Neal Gilmer with Haywood. Please go ahead. Yeah, good morning, guys. Morning, Neal. Congrats on getting to the positive EBITDA milestone. I guess I wanted to start off, it seems that your comments with respect to the supply chain and shipping delays was a little bit more emphasized, I felt, in your documents and your commentary. Have you seen an increase in the disruption since your comments in Q2? What we've seen is actually a plateauing of it in this Q3. We've been able to take certain mitigation options and put them into place that have helped us. Forward ordering, for example, we secured our chip requirements for the next couple of years. We've had to make those adjustments in terms of what we do. I think that there's still definitely a tightness. Shipping lanes are still congested. Container costs are still extremely high. Although we've been able to do, Dan Menard has done some excellent work in helping us to be able to reduce from the extremely lofty cost for shipping containers that we were paying already. We see the congestion maintaining itself for the next few quarters. We've forward ordered enough of our component parts to make sure that we don't suffer from this, and that we're able to execute on the orders that we have in place and anticipate having in place. Okay. Thank you for that. Based on your answer to the previous question on gross margins, those increased shipping costs or freight costs or whatever, you're not expecting them to have a negative impact on your margins over the next couple of quarters? Well, at the moment, we think that they're baked in. I can't comment on what might happen in the next couple of quarters to those costs. I can't really predict where China's going to go, because they've created a lot of the congestion and a lot of the increase in pricing. Given that things remain equal, we expect to be able to hold on our gross margins. Okay, thanks for that. Congrats on the UNHCR announcement you put out a week or two ago. Wondering just sort of, in you taking a look at your pipeline, obviously, contracts like that give you a lot of sort of visibility, and able to plan over the next three years. Do you have a number of customers that you have in the pipeline that you're looking to try to do something like that with to give you that sort of forward visibility on sales? Absolutely. We're working on a number of different initiatives that are two and three-year programs. That's really, I guess, when you look at your revenue mix, you want to have a substantial recurring line item of customers that are transactional, that are anywhere from 1-5 units. You want to have a lot more of those. On top of that, you want to start to layer in these kinds of blanket programs that give you that other layer of predictability. Lastly, you want to be really focused on your service and the software sales. We see ourselves developing into that. This UNHCR piece is the first of what we hope will be many to come. Okay. Maybe the last one from me. You talked about your investment in research and development in the previous set of questions. If you take a look across the general admin and selling and distribution lines, is there much investment that you need to do there as you start to scale up the business, or is this sort of the levels we saw in Q3, sort of fairly sustainable going forward? Well, it's definitely sustainable, because we backfilled some of the stuff that was cut during pre-pandemic, but we will aggressively be working to bolster our sales team, that's for sure. As the opportunity presents itself, I know that Richard Coombs coming in has a significant pipeline of very talented salespeople. Of course, that comes obviously with a proper and significant ROI. In terms of the other general areas, I think that for product management, we have maybe another hire that we'll do. I think in general terms, we'll be kind of normal course at this point. Okay, great. Thanks for taking my questions. Pleasure. Thank you, Neal. Ladies and gentlemen, as a reminder, if you do have any questions, please press star one. Your next question comes from Steven Tuchner with Triumph Asset. Please go ahead. Hi, Rory. Hi, Steve. How are you? I'm good, thanks. I saw the quarter, actually looks pretty solid to me. I heard some of your comments with respect to positive cash flows, and I see you're building the team, and it looks to me like you've survived. Just a couple comments and questions. Over this period, you've basically almost doubled the shares outstanding. I was sort of wondering when in your mind, are you gonna make, I guess, CAD 20 million of gross profit and CAD 60 million of sales to compensate for the doubling of shares? Secondly, the stock's at CAD 0.28, and if you are cash flow positive and survived, when might you think about buying back some of all those shares that you've issued? I think that, I guess in terms of the stock price, obviously there's been some significant selling in the last week. I think about 5 or 600,000 shares that happened. From what I'm led to believe, it was the result of a rebalancing of one or two of the institutions' portfolios. As far as that goes, I believe that in terms of the stock price itself, we've just got to keep executing and moving forward in terms of what we're doing, getting ourselves to that return to that pre-pandemic cycle. As far as the issuance of the shares are concerned, this was a function of survival. In May of 2020, we did a convertible debenture for CAD 3.95 million. That served as a bit of an overhang, obviously, on it. When we did the latest raise of approximately CAD 4.2 million, at that time, the convertible debenture holders elected to convert at the terms of the deal, which was a positive thing because it eliminated a significant overhang on the company's balance sheet. As far as the growth towards getting to CAD 50 million and CAD 60 million, we don't have a precise timeline for that. We're working right now on growing ourselves back to pre-pandemic levels of CAD 29 million, CAD 30 million, CAD 31 million in the coming year. We expect that as we get to that plateau, we are going to be poised to be able to see some significant growth going forward. Added to that is, as we are getting visibility and seeing the reemergence of the industry, we are working on these 2- and 3-year blanket orders, which are gonna help us to be able to add another revenue layer, which is traditional in terms of our industry competitors. We expect that we're just coming out of this thing at the moment, and yes, we seem to have survived. It's a bit early, though, to talk about when we get to CAD 60 million of revenue. Rory, what about buying I didn't ask about the share price versus share price. I was more curious of your thoughts on, okay, the stock goes to CAD 0.05. Are you gonna buy back stock at CAD 0.05? At CAD 0.01? If you're spinning cash now, you didn't put out three months cash flow statements, you put out nine months, and despite me having 7 degrees including one in accounting, I couldn't figure out the cash flows. Where's the bottom? Where do you stop it, and why wouldn't you buy back shares at some point? That's a discussion that we will have with the board. As I said, we're still coming out of this thing. It's still fragile. We are working to use our cash in the most efficient manner possible, investing in the business, paying down the debt. I think those are two very important pieces of the puzzle. As we see more robustness take hold, certainly that kind of a strategy is something that the board will have a good discussion. Okay. I appreciate that. I'm just reminding you, when you double the number of shares, you got to double the results to make it the same for everybody who owns one share. Understood. Okay. Thank you. Thank you. There are no further questions. Please proceed. Well, thanks everyone for your time on the call today. Mike and I are available obviously at any time to answer questions that you may have. You may want to also avail yourselves of a conversation with Daniel Menard. He's traveling today, he could not be with us, he is going to really be there and available for any questions from an operations perspective that any of you might have. In the meantime, I wish you continued health and safety, we look forward to speaking to you again soon. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines. Have a great day. Thank you.