Welcome to the XS Financial Inc Fourth Quarter Year-End 2022 Results Conference Call. As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star then zero. I would now like to turn the conference over to David Kivitz, CEO. Please go ahead, David. Good afternoon, everyone, welcome to XS Financial's fourth quarter and year-end 2022 earnings call. We are excited to share our financial results for the quarter and year with you today. I encourage everybody to visit our website at xsfinancial.com/investors for the most up-to-date corporate presentations, news, and upcoming events. Our financial statements and MD&A for the fourth quarter and year ended December 31, 2022, have been filed on sedar.com. We will be taking questions at the end of the call, please feel free to send in any questions you might have. 2022 was a transformational year for XS Financial. We had continued growth in revenue and operational performance, with particular emphasis on expanded funding relationships with several existing customers and new customer additions. As a result, our business is hitting its stride and our focus on industry-wide recognition as a better alternative for non-dilutive CapEx and equipment financing has seen positive reinforcement throughout the year. XS remains one of the only institutional and broadly recognized platforms for operators within the cannabis industry. In the second half of 2022 and into 2023, we witnessed a slowdown in our industry. Our pipeline remains robust. Given the slowdown in expansion plans from our target customers, we have expanded our origination efforts to source non-cannabis CapEx financing and view the opportunity ahead as sizable. We are in the preliminary stages of evaluating these opportunities and feel the company is well-positioned and staffed to begin that expansion. We look forward to providing a further update on this initiative in future company updates. We are thrilled to have closed our new credit facility with two bank syndication partners, which has a borrowing rate of prime plus one hundred basis points and was upsized to $39 million in Q4. We are proud to be one of the few companies to solidify a credit facility from a commercial bank syndicate in the cannabis space, which is a testament to our underwriting capabilities, portfolio strength, and employee talent. Our current funding capacity has set us up with a long runway for scaling through 2023. Our fourth quarter of 2022 continued our historically strong trends, which delivered increased revenue growth, monthly recurring customer payments, and a diversification of customers. At the end of Q4, we had 174 active lease schedules, compared to 139 at the end of Q3 2022. As cultivators, processors, and manufacturers seek out alternative financing solutions, our trustworthy, transparent, and reliable funding for CAPEX and equipment needs is continually relevant and sought out. With that said, I would now like to turn the call over to Stephen Christoffersen, our CFO, who will provide more detail on our financial results for the fourth quarter and year ended December 31, 2022. Thank you, David. I will now walk through the key points for our financial results for the fourth quarter and full year ending December 31, 2022. In Q4 2022, XS Financial delivered another strong quarter, which capped off a year of exceptional financial performance. Our Q4 revenue was $2,541,008, representing a quarter-over-quarter growth of 115%. Full year revenue of $7,567,473, representing an increase of 140% compared to 2021. These results reflect our continued momentum and highlight our position as one of the leading non-dilutive financiers in the cannabis industry. Our gross receivables increased from $43,473,000 at the end of 2021 to $111,407,000 at the end of 2022. We had 63 active lease schedules at the end of Q4 2021, which has now increased to 174 active lease schedules at the end of Q4 2022. Our operating expenses for the quarter were $1,728,000, compared to $1,386,000 in the same quarter last year, while our full year operating expenses were $5,630,000, compared to $4,088,000 in 2021. The increase was primarily due to higher administrative expenses resulting from higher employee-related expenses in general and administrative costs related to our continued growth. Our net gain for Q4 2022 was $1,428,000 or $0.01 per share, compared to a net loss of $1,073,000 or -$0.01 per share in the same period last year. For the full year ended December 31, 2022, our net loss was $6,305,000 or $0.06 per share, compared to a net loss of $2,985,000 or $0.03 per share in the previous year. Our net distributable earnings, which is calculated as operating income plus stock-based compensation and depreciation less financing expense, was -$946,000 for 2022 compared to -$1,677,000 in 2021. Looking forward, we remain confident in the prospects of our business and the cannabis industry as a whole. Our robust sales pipeline, diversified portfolio, and low-cost capital position, it positions us for continued growth in 2023 and beyond. We are committed to executing on our growth strategy, which includes expanding our customer base, diversifying our revenue streams, and increasing our funding capacity. With that, I'll turn it the call back now to David to go over closing remarks. Thank you, Stephen, for that insightful overview of our financial results. As we reflect on the past year, we are proud of our achievements and the progress we have made in establishing XS Financial as a leader in the CapEx and equipment finance industry. As we look ahead, we are excited about the opportunities that lie ahead for the business. We remain focused on executing our growth strategy while maintaining our strong underwriting policies, risk management framework, and commitment to sustainability. Finally, I want to thank our employees, partners, and shareholders for their continued support and dedication. We look forward to delivering continued growth and value to all of our stakeholders in the years to come. Thank you all for joining us today. We will now send it back to the operator for questions. Thank you. We'll now begin the question-and-answer session. To join the question queue, you may press star then one on your telephone keypad. You'll hear a tone acknowledging your request. If you're using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then two. We will pause for a moment as callers join the queue. The first question comes from Walter Ramsley from Walrus Partners. Please go ahead. Thank you. Hello, David. Couple of questions. The table in the press release, you've got the fourth quarter gross receivable total at $112 million, and then at the, like, as of today, I guess it's $109 million. Is that just kind of a fluke, or is there an actual kinda leveling off taking place? Walter, appreciate that question. Thank you. That is a result of a small slowdown in originations, as mentioned in Q1. During the quarter, we ultimately collected more payments from our customers than we originated new receivables. That is why, one, we've alluded to an expansion beyond just the industry that we are currently focused in, and also continuing to service the commitments that we have made to the existing customer base. I think from what we have started to see, you know, we expect a strong Q2, but certainly in Q1, as noted, there was a slight slowdown in originations. Okay. Just to kinda do the work for me, if you don't mind, the distributable earnings in the fourth quarter all by itself, can you tell me what that was? Stephen? Yeah. Would you like to take that one? Yeah. Oh, happy to. Hey, hey, Walter. How's it going? It's coming in around at negative $425,000 for Q4. The big driver of that was kind of a catch-up in year-end bonuses that weren't being accrued throughout the year. You know, going forward in 2023, we're gonna start accruing on a quarterly basis. There was a catch-up in the accrual that kind of swung the Q4 net distributable number negative. The net distributable number for Q4 is about negative $425. We expect that to, you know, normalize. Q3, if you recall, is positive $184. Right. You know, we view the business as, you know, more or less right around breakeven, incrementally positive on a net distributable earnings basis. Okay, great. All right. Thanks for clarifying that. Appreciate it. Yep. Appreciate it, Walter. Once again, if you have a question, please press star then one on your telephone keypad. The next question comes from Walter Ramsley from Walrus Partners. Again, please go ahead. Okay. Well, if nobody else is gonna ask it, I guess I will. Can you spend a few minutes just kinda, illuminating us on, you know, what's going on in the industry? Is this like kind of a death spiral or is there light at the end of the tunnel? Thanks, Walter. Appreciate that. Yeah. We're not expecting nor seeing a death spiral in any respect. I think, you know, one prime example of that is the fact that we still to date have not missed any payments from our customer base. What I do think is happening is, you know, one, there are markets that are performing better than others. You know, several of our borrowers are diversified across, you know, five, 10, 15 markets where, you know, a slowdown in performance in one is offset by performance in others. You know, several of our single state customers or smaller MSO or regional MSO customers, similarly, you know, are performing as needed. For the most part, you know, as we think about underwriting in markets where we wanna deploy our financing, we are attempting to avoid those with outsized exposure to, you know, mature markets that have proven to be difficult for our borrowers or borrower prospects to operate in. That has been the case for several years with us. You know, you'll know, you know, California obviously came out of the gate very, very strong in terms of revenue, but we've never had a large exposure to the state nor Washington nor Oregon, as examples, for good reason. You know, I think companies that operate alone in those markets are challenged. Now, does that mean they, you know, certain ones like Connected Cannabis, like others, does it mean they cannot generate, you know, positive performance there? It doesn't, but it's more challenging, certainly. You know, we're very thoughtful about which markets we want to deploy capital to vis-à-vis our borrowers. You know, I think generally speaking, 2022 was a slowdown year in the industry, having come off of a very strong 2020 and 2021 as a result of COVID. People were at home, they were ordering a lot of product. We've witnessed a sales slowdown, certainly not a death spot, a slowdown as compared to those years. Why does that matter? In 2020 and 2021, and perhaps even into 2022. One, there were exuberant equity markets during that time, so capital was readily available. Two, infrastructure was built, CapEx, as an example, staffing, et cetera. Thinking that, you know, what happened during COVID would continue on for an extended period of time. We've seen not only in cannabis, but in several other industries. Tech, you know, anything that was really targeting a consumer who was sitting at home, has had to rethink the expansion plans that they laid, and as a result are pulling back. I think, you know, 2022 and so far what we've seen in 2023, are prime examples of that. We've seen it with our customer base. You know, we think this is a healthy thing for the industry. They're forced to, you know, focus less on M&A and growth and more on actual operating efficiency and performance, which given that we are, you know, lenders as opposed to, you know, investors in the equity of these businesses, we like when they operate efficiently and, you know, ultimately focus on performance. You know, I think the, the negative of that is that our targets are being very cautious and careful about, you know, expanding right now, particularly as a result of the fact that lending rates have gone up. You know, no surprise that the prime borrowing rate has gone up, you know, I think roughly 400 basis points. That's a cost that we pass through, in many cases to our customer base. You know, our rates may have been, you know, X before. Now they're 400 basis points higher, on the whole. Companies have to think a lot harder about not only is there a slowdown, but also their cost of capital has gone up. You know, put all of that together and we still feel very confident about the industry, where the industry is headed, the borrowers that we've chosen to deploy capital to and several of those that are in our pipeline that we're considering right now. We do expect, you know, things to sort of stay at this level for a period of time, and that is why we are also, expanding our focus, to other industries. I'll note on that topic, you know, I think for the most part, everyone is aware that, you know, banks have been in the news quite a bit recently and are starting to pull back somewhat in lending. We see actually moving into certain other industries as a natural opportunity as, you know, sort of the wave of capital pulls back presents quite a bit of opportunity for us. We'll continue to, you know, bring strong underwriting guidelines, focus on industries that exhibit some but not all of the characteristics of cannabis, because we think that's where we do best. We'll continue to provide more news on that. We, we think the industry is performing, you know, but right sizing and the CapEx spending this year is going to be somewhat subdued. That's great, David. Thanks a lot. Appreciate it, Walter. Thank you. This concludes the question and answer session and today's conference call. You may disconnect your lines.