Tegra. Tigra? Tegra. Tegra? Yeah. Yeah. So it is right here, that one. This one here? Yeah. Then just hit, just click it. Full screen mode, then you should be good. Thank you. Now presenting Karen Hersh, Xtract One. Hello? Hello? David, could I use this? Yeah, just click it. Hello. Can everybody hear me? Yes. Excellent. Good afternoon, everyone. Thank you for coming and listening to our presentation today. I'm Karen Hersh from Xtract One Technologies. I'm the Chief Financial Officer. Peter Evans, our CEO, sends his regrets. He unfortunately wasn't able to make it today, so you have me. Going to take the next 20 minutes or so to talk about Xtract One, and then we'll leave hopefully a few minutes at the end just for some brief Q&A. Standard disclaimer. Okay. I think it was probably a year ago, I was in this building, and I asked the audience, "Who here thinks the gun issue is going away?" Needless to say, nobody put up their hand. Nothing has changed a year later. The weapon issue has become just a terrible situation in North America and the world. In the U.S., there have been over 350 I don't think you can hear me well. Can you? Yeah. It's okay? Okay. There have been over 350 mass shootings just in 2026. If we think it's south of the border alone, there was an incident in British Columbia as well this year, a terrible incident. These terrible tragedies, both in North America and around the world, have really become an issue. The physical security market's answer to this has been, at least traditionally, metal detectors and lots and lots of security guards. The truth is that weapon detection, the weapon scanners, are 50-year-old technology, if not older. It was meant for a very different time when people didn't carry as much metal as they do today. Maybe you had a leather wallet, you had a key, that's about it. Today, in my bag alone, I have two chargers, a tablet, a computer, AirPods, a phone. You get the picture. It's just intolerable today with as much weapons as we have, and it's no longer a proxy for a gun when you detect metal on a person. On top of that, I think everybody's expectations are very different. People don't expect to wait 45 minutes to get into their favorite hockey game, and you're certainly not expecting to stand in the cold or the extreme heat. You're expecting to feel safe. The headline here is that we have developed a weapon detection, purpose-built, AI-driven technology that provides great outcomes for our customers and makes people feel safe in all kinds of environments, including arenas, schools, hospitals, commercial buildings. The list goes on and on. Just a little bit of market trends that are going on. You can see here that it's creating an interesting opportunity for us. I'll start with societal unrest. It's very clear that we have quite a bit of societal unrest today with homelessness, drug situation, mental illness. In fact, people on the street are carrying weapons just purely to defend themselves at this point. They're carrying blades, and this is creating issues, particularly in hospitals, where people are coming into the ERs and are carrying some kind of blade with them at that time, and creating issues for healthcare workers who are in close proximity to these people. On top of that, with the decline in the labor force, people are having trouble getting security guards. That situation got really extreme during COVID and really hasn't resolved itself since. What we're seeing along with all of this is the rise of pragmatic AI, and what we're all about is extending that pragmatic AI to a very traditional physical security world. The picture on the left probably resonates with many of you, where you're sitting there trying to get in through metal detectors. The people on the other side are actually a security hazard with that many people standing around waiting to get into a facility. You have to divest of your watch, your wallet, your keys. It's very invasive, very unpleasant experience, and just basically an overall terrible patron experience. Whereas on the right, where you see this is our SmartGateway product and this woman coming in. She doesn't have to divest of her watch, her wallet, her keys, her phone. She just walks right in like it's regular, probably not even realizing that she has been scanned. If she has no weapon, she just continues straight on into her seat. If she has a weapon, it will alert. She'll be taken away for secondary screening or moved off to the side for secondary screening, and everyone else just continues to enter the facility. What does this mean? It means that instead of six people getting through a metal detector in one minute, 60 people or more are getting through our system, which is creating a much better experience and as well a safer experience because it's catching at least if not more of those potential threats. We like to put this slide just to say, why are you here? Why Xtract One? This is a highly disruptive market, and it's very high barriers to entry. There are very few players in this space, primarily because the technology is very difficult to do. It is a huge market. I mentioned a few of the markets that currently we address today. I think legislation and regulatory environments are making that even more so. For example, there is the bill in California, Assembly Bill 2975, that now requires screening, for example, in hospitals, in acute care emergency hospitals. There's also Martyn's Law as another example in the U.K., where any building with 850 or more people has to do weapon detection screening. So the legislation is basically imposing a need to have this kind of technology, and we're moving from a nice-to-have to a must-have. There's a few other factors here I'd just like to point out, and we'll get into a lot of these more throughout the presentation. In terms of our revenue, we're going to show it's a very leveraged model here. We're growing revenue, creating some predictability in that revenue, but also showing very strong margins and a good scalability to it. We have built up a very strong order backlog at our year-end, which was just July 31st, which we just announced with CAD 44 million of contractual and pending backlog. We've been independently verified and proven by organizations like the DHS, the NPSA, TSA. The list goes on and on, and we'll show a slide on that as well. Most importantly, we have happy customers that have a true ROI on their experience. In the scenario that I just showed in the picture before, it's obviously getting people in much faster. When you can get people in that fast into either a live entertainment or arena, that means less security guards, and we've shown that we can reduce it by two-thirds of the number of security personnel. But it also creates a better ROI if you are looking at schools, for example, where teachers are no longer having to do the backpack checks, and the students can get in without that kind of involvement and feeling like they are in a TSA environment. What this slide is just basically reiterating is that there is a natural, I guess, conflict between having a good guest experience and having security. What we focused on first was making sure that we were secure, that our products were catching the weapons, then we built up that intoxicating speed of getting people in faster. The most important thing is just to ensure that you have both. That is where we feel that we really have a solution that really defines ourselves in the marketplace by being able to catch the weapons and allowing for a great guest experience, not a trade-off of one or the other. In terms of the market, we started in stadiums, arenas, live entertainment, and there was a reason for it. They already have security guards. People were already used to being screened, and that was a natural place for us to start. We made great headway with that with a product called our SmartGateway, which has been in the market for about 5 years and has seen some really great success. But really the market did not let us sit there. They pulled us into new industries like schools and healthcare and manufacturing. Today, for example, we have customers with four major car manufacturers that use that product to scan employees, up to 10,000 people, workforces, 3 times a day coming into a car facility because they are concerned about weapons in the workplace. As you can see, the expanded market moved into schools and healthcare. We came out with the Xtract One Gateway, which was our second product, which is better suited for medium clutter environments and was really made specifically and purpose-built for the school market. The reason for that is what we call the backpack problem. So when kids come with their backpack, they have a notebook in their bag, it has a lot of metal in it, and every product on the market, including our SmartGateway, would alert on it. What is the point of having something in the schools that is going to alert on virtually every child? So we came out with the Xtract One Gateway to deal with that product, and solve that problem so kids do not have to put their bags through X-ray machines and feel like they are at the airport or have their bags checked and manhandled. So it has worked extremely well for us. That expanded TAM for us has been tremendous, and we will see when we talk about our revenue growth that we have been able to achieve. That Xtract One Gateway product represented a third of our revenue and half of our bookings just for fiscal 2026, the first year that we have had that product out in the marketplace. Then we look beyond that, and certainly there is a global need as well. We are seeing a lot of activity in Europe, which we believe is probably 2 to 3 years behind North America in terms of their demand and where they are in their process and moving towards weapon screening. In the rest of the world, knives are the issue, not firearms, and we happen to be quite good at detecting those knives with our SmartGateway product. It is a nice fit there as well. These are just some of our customers. On the left is what we called our initial markets. You can probably recognize all kinds of names there, the New York Islanders. Madison Square Garden has been a customer of ours since 2023. They are also a shareholder. They have been a fantastic partner for us and they also own the Sphere in Las Vegas, which is just a beautiful facility and really showcases our product very nicely. What we call the expansion markets are those other sort of the schools, the hospitals and now convention centers as well with the Xtract One Gateway. We just recently announced the Metro Toronto Convention Centre, a great install for us. If you happen to go there, you can see our product at that convention center. Happy customers. We like to actually call them ambassadors, not customers. Security is a very tight-knit community, and all security people talk to each other in the industry. Therefore, we like to put our best foot forward always, and that has worked very well for us. As I said, we had 4 car manufacturers, and we have had other wins that have come directly through other customers, supporting our product and promoting us, so to speak. These are the 2 main gateways that we have talked about. We have the SmartGateway on the left and the Xtract One Gateway on the right. Both of these products are sort of connected to our extensible software platform that we have that allows us to do all kinds of additional data searches and to build on these products. These are primarily for the gateway, but certainly there are other possibilities, which we will talk about a little bit later in the presentation. The SmartGateway, as we said, is really meant for fast, frictionless entry where people have very little on them and they are going to see Taylor Swift or something where they are trying to get quickly into a large facility. Whereas the Xtract One Gateway is more for situations like coming to this place, anywhere where you are going to carry a backpack and a medium clutter is what we call with a number of metal items in it. This bifurcation of the market is really unique, and we are not trying to fit one product to fit every solution, and I think that this is part of our success, is our ability to be able to cater to the specific needs of each market that we address. I think we talked about the laptop problem for schools. For manufacturing, do not alert on steel toe boots. Very simple thing. The Smart Gateway, we do not alert on steel toe boots. In the hospitals, catch the very small blades, this size. Our products can do that. I think part of our success is understanding, looking from the customer back rather than product forward. As an innovation company, it is very important to address the problems that exist today in the market, and we believe that is why we have been successful. This is just quickly showing just the ROI for an environment where you can increase the input of people into a facility means less security guards, which means less Opex, and you have savings there, and it is a proven ROI. It is different for every industry that we work in. Schools and hospitals obviously have different requirements and different ways of measuring success. Going to skip that one, just not too much time. As the CFO, this is of course near and dear to my heart, which is how are we doing financially. You can see this past fiscal year, we did CAD 28.8 million of revenue. When I first started with the organization, it was a couple hundred thousand. We have had some great success. We attribute this to the growth of not just our Smart Gateway, but the new product that we launched this year being that Xtract One Gateway. On top of that, we have margins sitting close to 60%, which is really, I think, best in class for our industry. We have operating expenses that have grown only 13% in this past fiscal year versus a revenue growth of 108%. I think what that shows is that this is a scalable, leveraged model that works well for us. In the back half of the year, we were basically Adjusted EBITDA neutral, which is a big milestone for the organization. I think we are just going to continue to build and build on that scalable model. On the bottom, you can see we have our backlog. It is CAD 44 million as of year-end. That contractual backlog means that it has been installed and is just waiting to recognize that revenue, which is amazing. We went from CAD 15 million to CAD 25 million in just one year. What that means is that our recurring revenue is growing every quarter, at a serious nice rate for us. Of that amount, CAD 10 million we know we will recognize at least in the first year, in addition to whatever it is that we continue to book beyond that. The other is our pending backlog, which is basically showing contracts that have signed and have still yet to be installed, so we have a healthy build there as well. This is just quickly showing. I see we are running out of time a little bit, and I want to make sure we have some questions here. This is just showing some of the accreditations that we have. The best way to prove that your product works is to have independent parties test your product. The TSA in particular was probably the most rigorous for us. That was quite an endeavor. So gives us credibility and gives our customers confidence in our product. Going to skip this one. I think we talked about Madison Square Garden, which has been a great customer and investor for us. I just wanted to talk a little bit about just in terms of where we go from here. I talked about the extensible platform that we have for the Xtract One Gateway in particular, which has turned out to be a lot more than just a weapon detection technology. It is actually moving towards object technology. What does that mean for us? That means when schools are looking to catch vapes or cell phones that are no longer allowed to come into the school, we can start to do that. When fulfillment centers want to catch theft on the way out of a building to make sure that the latest iPhone hasn't been stolen when it comes in, we can do that. Various parties have told us that there are billions and billions of CAD of lost electronics from fulfillment centers with employees' theft. This is an incredible opportunity for us to continue to build on that weapon detection technology and to have enough accuracy to be able to detect specific items for theft or other benign objects, but still harmful that people want to keep out of their facility. Just quickly, we have a subscription and an upfront model. What that means is that we either allow the customer to buy it outright or to use it as a service. We like to meet the customer where they are, so we offer both models, which is why you see a contractual backlog. Just quickly moving to our cap table, let everyone know that we are trading on the TSX and the OTC. I think I'm going to take a break right from here because I want to make sure that we have enough time just to ask a couple of questions. Yeah. Could you speak about customer churn? Customer churn. We have very little customer churn. It is fairly early in the game, but we work very hard to keep all of our customers happy. We work very hard upfront to be transparent about what our product can and cannot do. I think that transparency does a couple of things. First of all, it is security. Trust is number one. If you are candid about what your product can do, and we cannot work in every single environment, they appreciate the candor and the honesty about that. Secondly, we do try to keep our customers happy, and accordingly, our churn is very low. We do not give an exact number, but it is quite negligible at this point. Usually, the reason that if we had any churn at all, it is because a customer has tried very hard and just does not have the budget to maintain the product, even though they love it. Really, the lion's share of our products are larger customers that have a strategic plan, and they have a number of installs planned, and so that does not really play out for that kind of situation. Thank you. It is a good question. Hi. Hi. Has there been any research on the difference between, for example, content stadium and how you are able to cut down on running doors and seeing the uptick in concession sales with detailed as it means to incentivize the customers by showing them that frictionless entrance means more time for the customer to spend more at the facility versus things slow? That is a fantastic question. I am not sure if everyone heard, but the question was if there is a better uptick in concessions and other revenue-generating activities once people are in faster, and the answer is wholeheartedly. I mentioned Madison Square Garden. They own Radio City Music Hall. They do the Christmas special every year, and they were finding that only 75% of people were getting in in time. They were having to give refunds. People were unhappy. They were not getting in their seats. With just doing two of the three entrances with our product, they were able to increase the people in their seats to over 90%, and they are a very data-driven organization. They found that people were spending $5.40 more once they were in the facility because they actually had time to buy a coffee or a T-shirt or whatever it is they wanted to buy. Yes, definitely a revenue-generating element to the ROI. Thanks. Great question. I think we have time for one more. One more question? What's the budget competition and market share? Competition. Well, there are not that many players in our space. I guess you could split the competition a few different ways. One of them is just doing nothing at all, of course. It's always an option, not a great one. In terms of the players in this space, we'd say there's probably two players that work in this space. A company that makes a product called OPENGATE, which is sort of a lower-end product and uses really the same metal detector technology, there's no AI component to it. And then a company called Evolv that trades on Nasdaq, that's probably the incumbent in the space, and we are a good fast follower. I would say those are really the main players. There's a couple of different other technologies that are out there. Millimeter wave technology, for example, is certainly a way to detect weapons, but it's not fast and frictionless, so it has better applications in other environments like the airport, for example, where things are going to go a little slower. I think we're out of time. Please, this has been a pleasure. I'm going to be here today. I'm here all day tomorrow. If you have other questions, it's Xtract One on the TSX and the OTC. It has been a really pleasure to be here. Thank you so much.