All right, everyone. We're going to go ahead and welcome our next presentation. We have Anthony Perala, Todd Ziniuk, and Amin Ladha with Zedcor. Hey, I'm Anthony Perala with Punch & Associates. Thank you, guys, all for being here. At the end of the day, I thought I had a good relationship with Bobby, but alas, he stuck me with the 5:00 P.M. presentation here. It's a pleasure being up here with the Zedcor guys. We own the stock, as full disclosure. If you were in Howard's presentation yesterday, who's a colleague of mine, he spoke about mercenaries and missionaries. Definitely feel like this team would fit in the missionary bucket. This will hopefully be the only really scripted piece. I'll say here, for those who don't know what Zedcor is, ticker ZDC on the Venture Exchange, ZDCAF on the OTC markets, but a high-growth security and video monitoring company providing turnkey security solutions to industrial and commercial customers in North America through their fleet of MobileyeZ security surveillance and monitoring towers. You've undoubtedly probably seen these towers in retail parking lots. A lot of them look like you could tackle them. The Zedcor one, if you tried to tackle, you'd feel like you ran into Ray Lewis, so d on't try to do that. If you Google Zedcor tower tornado, one of the first things that will come up is a post Todd made on LinkedIn, where a tornado went through, demolished all the structures around, 140 mph winds, t he Zedcor tower remained unscathed. It's a really robust solution. They have 3,261 units in the field as of March 31st. Expect to have 4,300- 4,800 by year-end. It's a very high-growth company. Have proven to reduce cost for their customers. Reduce liability in the field. Yeah, hopefully that's the only scripted piece here. Let these guys talk about the business. To start off, something that really attracted me, just getting to know you guys in the business more, is how you lead with service and a white glove approach. If you could go back a little bit in your career, Todd, to your history running rental businesses. Just where you've kind of got the bones of running a service-led business like that, it would be really helpful, I think. We can go from there. You bet. It became important, obviously. We started out with generators, light towers, support equipment for drilling rigs, all the different aspects. Even prior to that, I was in logistics, moving drilling rigs in Western Canada. The biggest thing was then we got into accommodations, and a lot of our generators ran parts of the rig, and then when it went down, we had to be on the road right away. I understand the service side. Zedcor's white glove service. Our competitors in the space, I think they lack a little bit of service. We lead with service, and we prove it how fast we deploy our towers. We understand logistics. If you want 200 towers in North America, we can make it happen very easy within 14 days. We hear from some of our clients that they're waiting two to three weeks to even get one tower out. It's been a big part of helping myself, honestly, being the CEO and understanding it. James Leganchuk's been with me 15 years. He's President of Operations. He built the original Zedcor with me. He's been a big part of the team, and it's been crucial. It's a big change for us. I think you'd agree with that, Amin. Yeah, 100%. Maybe talk about, sorry, maybe talk about kind of how we're building the inventory, how that helps with the rapid deployment side of things and the service. When we first started building our towers in Houston, I remember the week we built 20, we thought we did everything perfect, but the problem was is we were out of supplies of all our metal supplies Monday morning, they dropped off the new supplies at noon. I realized right then, I went to Amin, I said, "Hey, we got to start building 35 metal packages. Our suppliers need to bring that in. We'll continue to build 20. We probably got to get up to about 150 unbuilt packages." We went down that road, then we started to tell the market we were building 35 towers, then we started actually having them bring us 40 packages. Now today, we sit probably about 150 unbuilt towers, always on the ground. Back in the day when we were first opened up in Houston, you'd build four towers, they'd go to Austin, two towers, they'd go to Dallas. We're running at 99% utilization. It was unfeasible. Now, we've got it where we build, we have about 80- 100 at the factory at all times built. We send loads of 20 per branch, and that's really what's cutting us apart as well. We're building a branch platform. We've got the utilization down to about 85%. It's key for us with big clients that are coming in, like the Krogers and an RFP with them, and different big retailers. That's the first thing they ask is, "If we were to win one of these contracts, how fast can we supply?" We're in a great situation for that. It gives us the ability to move fast for them as well. That's our goal, is to run this at about 85%. You get a big contract, it's going to probably go up to 98%, and then we'll work on bringing that back down to 85%- 90%. The biggest thing is that if you got two big contracts at one point in time, that's when it would change. We have the ability in our facility today; we build 50 towers a week. We can go to 100 by just adding staff. We're not working weekends. That's an eight-hour shift, five days a week. I don't want to steal all his questions. Can you keep going there just on your branch network, where it's at today? You came into the U.S. in the last couple of years, and where it's going in the next couple of years. Absolutely. We did our first deployment of our new tower pretty much 25 months ago. Today, we operate, w e're in Houston, Dallas, San Antonio, Austin, Midland. We just moved into Los Angeles, Sacramento, Denver. We got about 130 towers working in Las Vegas, Phoenix. We're in all of Florida as well. We've moved into, we just opened up in Pittsburgh. By the end of the year, we're going to have 20 branches across the U.S., 26 in, oh sorry, six in Canada for a total of 26. Our goal is to get to 40- 42 in North America. That's going to put us within about six to eight hours of any of our towers, and that goes right back to the white glove service. Something we have is a lot of health checks in the background. We tell our clients when their tower's not performing, or a camera's down, or there's a spider web. We actually send people to deal with it. We don't even want our clients to have a key to our tower. There's no need for it. We'll deal with it. That's part of our job. It's part of the service we provide to all of our clients. When I first started looking at the business, just from as a specialty rental business, I thought it was super attractive, but it's so much more than that. If you could go a little bit into the technology, the monitoring solutions that you provide, all North American-based, that differentiates you from the competitors. Absolutely. We first started out doing a pipeline job. It was a job between two airports, Calgary and Edmonton. They were getting sabotaged, equipment was getting stolen, and then we evolved into monitoring the Trans Mountain pipeline. Honestly, when we first got into it, we had no clue. But by the time we got to Trans Mountain, we knew what we were doing, and they held us at a very high standard, and it was key. We had ex-RCMP, ex-law enforcement testing us every night. We had no idea. We had about 250 towers spread over 1,000 mi. These guys would come in wearing all black stuff, break through fences, and we had to get it. We had to be on the phone with the cops within 60 seconds, and it really put our standard of monitoring up here. Then, we realized the importance of monitoring and what that brought to the clients. The biggest thing we've seen when we moved into the U.S., the first question we get is: Where's your monitoring done? Well, it's done locally, and we explain to them what we do, and everybody that works at Zedcor is an actual employee of Zedcor. We're not doing it in the Philippines. We're not in India. The biggest thing I pride ourselves on is we're throwing solutions at a problem; we're not throwing people at a problem. And you know, the technology in the background right now, there's really not a real good VMS, video management system, out there, how all your alarms come in via cellular or satellite. Like for example, the Bellagio right here, they probably use Milestone or Genetec. That's designed for fixed cameras on the internet. All these cameras are going to one room. They're managing it. They put the cameras in, they forget about them. Maybe one needs to be replaced. As you can imagine, we've got 3,500 buildings talking into one system. We've made the decision we're going down the road to build our own VMS. Anthony was down for a tour. With that VMS, it's all about how the alarms come in. What it's going to do is make us way more efficient. For example, right now, everything's in partitions. That's mainly designed for, you take a building like this, your partitions would be each floor. We have to have 200 towers per partition. What we want to do is get rid of that, and it's like a funnel how they're going to come in, and it's going to make things a lot more efficient. Do you have anything to add to that, Amin? Yeah, maybe, just to touch on, that allows us to take, that's the last piece of the value chain that we don't really have control over is the software. It allows us to build on that. We're going to start with the VMS, but then we're going to use the video, apply AI to it, make the monitoring more efficient. We're going to add in analytics for customers, different verticals, different needs. Retail wants one thing, and home building wants another, and kind of how we could either further make the product sticky, or we can kind of start charging for some of those additional use cases that D.R. Horton might have or some of the retailers might have. That's kind of the evolution beyond security. Obviously, the security component's not going to go anywhere, but how can we use the video? How can we provide more services to the customer, whether that's to make the product stickier, or we can charge for it through analytics. Give it, Amin. We'll do one for you. Could you talk a little bit, the Canadian business, you could say mature in air quotes, but it's still growing at pretty nice rates, 20%+. Just talk a little bit about the growth you continue to see there and the margin profile, which is pretty astonishing for when a business gets to maturity. Yeah, for sure. Our goal is to have that Canadian business continue to grow in that 20%-25% range. Q1 always starts off slow in Canada, a little bit of construction delays with permitting, Christmas time, people take holidays. But Q2 onward, we're up to record daily revenues in Canada. That side, we're probably pretty optimistic on hitting those growth targets. Just to add on the margin side, what we're really starting to see in the U.S. is the margin expanding just because we're spending so much money in the SG&A line expanding to new locations, like Todd mentioned. Once a branch gets, quote unquote, I don't want to call it mature, but once it gets to that four quarters, five quarters, that's when it starts to make money, and the U.S. branches, like the ones that we've been in for longer than a year or two, Houston, Denver, those branches have more units operating at them than Canada does, like our Edmonton location or our Toronto location. Those locations have more units but similar amount of costs. The U.S. might have even bigger margin potential once we build out that, and we'll start seeing that. We're not going to disclose that separately. We're not going to get that granular and start showing branch-level numbers, but t hat opportunity to push those beyond the Canadian margins is there as well. We can stick to the CFO topics on here. If someone looked, they'd see that you're spending a lot on growth CapEx, just the demand for the product out there. Could you speak a little bit about the breakdown between growth and maintenance CapEx and how that's reflected in the numbers today? Yeah, for sure. The maintenance CapEx, we're fortunate right now, but we don't anticipate, just because the equipment's so new, we don't anticipate a ton of maintenance CapEx in these units. There's not a ton of moving pieces. Any of the smaller components that break, we'll run that through the P&L. We always have been. The biggest maintenance CapEx would be the camera pieces. The economic life is about five to seven years. They have a five-year warranty. We started disclosing the maintenance CapEx number in the MD&A, even though it wasn't really material, but a lot of people were asking for it. That, I can't remember off the top of my head what Q1 was, but it was under CAD 100,000. It's not significant, keeping in mind some of that's just because of the nature of the units being newer. The maintenance CapEx, once they get to that five to seven years, is when we'll start replacing the cameras. The cameras are about 1/3 of the cost of the total unit. Todd, I think it'd be helpful if you could, w e, in my preamble ahead of time, talked about the proof points you have in the field with customers. If you could talk a little bit about some of the KPIs that D.R. Horton has saved, shown about how much you've saved them in the Houston market, I think that would be helpful. Yeah, absolutely. I just wanted to touch on one other thing that Amin was talking about with the branches as we open them. Some we're really seeing, as you imagine, when we were new, when we opened Denver, there wasn't a tower of ours within 200 mi of Denver. We just opened up in Pittsburgh. There's like 65 towers already in that area from other clients. Like, we have trucking companies that have towers. We've got multiple clients in that area. All of a sudden, this branch opens, they're responsible for 65 towers out of the gate. Where Denver was literally, we had to go out and chase it. You're starting to see the branches even now where we open them. We're strategically opening them because we need people in the area. To go back to the KPIs with D.R. Horton, yeah, one of our first guys that we got there was Fred, and I went out and actually, Brandon, he was our sales guy, went and met with Fred in the field in a neighborhood, and I said, "How many towers do you think you need, Fred?" He said, "Well, I think you're the security guy. You tell me." He said, "This won't work anyways." He said, "I like Brandon. He used to sell me porta potties. I'll give him a shot." We went down the road of doing that. We put five towers. We had three arrests in the first 10 days. Fred really started tracking it, and obviously, they track all their theft and all their different things. The year he started using us, he was paying about CAD 1 million and change on security, and they lost CAD 1.5 million in theft. The stats he just came out with now, Amin, I think it's like. I think two years we eliminated. Two years it's down under CAD 100,000, and we're cheaper than the security he's using. The wild thing about that stat is the first year he used us, he built 1,000 homes in his area. This year, he's building 1,700. There's a lot more product out on the ground. He's actually one of the fastest divisions at D.R. Horton for turnover on their houses. He actually, you know, I told him we had an Investor Day coming, "Could you supply this to me?" And he said he just about fell over office chair. He hadn't pulled the numbers for a while, and he said he actually believes it's the cameras that are making him in the position, because it's not even the cost of the theft. The window package gets stolen; you might be two weeks to get that window package for that house. Now that house sits, things are missing. It slows the whole process. They're building their homes in like 80 days from time they break ground to their sprinklers on, fences built, houses being sold. They don't have time to lose a couple weeks. They've also started tracking, the cost isn't on this, but somebody pulls into a freshly poured driveway. That happens during the day. We can do a video review, show them who did it. Now, D.R. Horton's not eating the cost of a CAD 15,000 driveway. The contractor that pulled in is paying that bill. Same with the landscaping. The list just goes on and on. What else there was in that KPI, Amin? Anything else? They kind of missed. The cost of. 100%. How quickly they're able to turn over their inventory. Yeah, absolutely. Ironically, they're all over at the ARIA right now, hotel. They're all 118 business units were there. Amin and I were there last night meeting with a bunch of them. We have a national account with them, but you still have to get to every business unit. Fred's really introducing us to a lot of people. It's to the point now I want to be able to get some of their worst neighborhoods, go in and do a demo with them, say, "Here, we'll give you 10 towers. Let us prove what you do." The biggest thing is, I was talking to one of the presidents there last night. It's a true partnership, right? Is what you want to develop with a client like D.R. Horton. Show us what you're spending, show us what your theft is, and let's do a six-month deal and do a comparison at the end. I think they're getting on board with that. To be able to prove what we're doing. Obviously, we're humans. We're technology. We have small misses. It happens. But the numbers speak what happens. Home Depot had a great stat as well when we first got going for them as well. Number of incidents. 100%. At sightings. Case studies are available in our presentation that's on our website. How much did D.R. Horton spend on site improvement? It was around, I think, $500,000. In that area. That area. Okay. Yeah. Okay. Amin, do you want to, w e talked about the demand and the growth coming up. Talk a little bit about the capital raise earlier in the year and the expanded credit facilities and just, and where the balance sheet sits to fund that growth going forward. Yeah. We have a kind of a base case model that we're running. We can build 50 units a week, 200 units a month. We'd have to increase the debt for sure, but the leverage would be at a level we're comfortable with in that kind of 2x- 2.25x range at the EBITDA. We did the raise in January, February of this year, kind of opportunistic, good timing, and to keep the balance sheet clean, like you mentioned. We had a number of these retail customers in the pipeline, and we feel that having that flexibility of increasing the CapEx, even if it's in the short term, we need that ability to be able to do that, and this kept the balance sheet clean. We wouldn't have had to chase capital. We've kind of structured that all at the beginning of the year. With that being said, we'd always look at opportunities. If we need up the CapEx to 3,000 units a year, 3,500, we definitely look at different forms of financing. Any questions from the audience? Go ahead. It might be a naive question, when it comes to the cameras and the AI integration, especially with future VMS options. Th ere's no issues with being able to integrate that into current camera systems right now, right? No. What we're building right now, for example, all of our cameras have AI at the edge. They're set up, there's a processor in the camera. They're Axis cameras, owned by Canon. We're only as good as the processor in that camera. If you're looking at a video, like a computer screen, it might be 2/3 up of the screen, the analytic will get it, human or car. Now, you start getting further away, obviously, it won't detect it because it's getting too far out. It only works out far. Some of the testing we're doing is, we've actually did with our software team is, now that we can compute it at the servers, it'll catch it at the top of the screen as well. There is no problems with rolling the cameras in. Everything's going great on that side. I think, Amin. Yeah. We set up the VMS to be able to integrate different cameras, different brands of cameras in. Obviously, there's different functionality in the background. The ultimate piece, like Todd said, is bringing that video into the server, processing it further using GPUs, and providing that better service, that better result for the customer. Go ahead. Can you speak about ZBox? Th e product originally came from a customer's request, and how do you look at it, say, over the next three to five years, how it integrates into the overall processes? Sure. It's a great question. The ZBox, we designed it, we had a client that wanted something that could be wall-mounted, so we came up with the ZBox. That's where it started. We really don't disclose this real well, I guess, on the Canadian side, but they're up to just about 250 ZBoxes out. Obviously, this was places towers weren't going to go, and that's another whole growth pattern in Canada. The U.S., I think it'll integrate into, you know, we're starting to see 7-Elevens of the world, Circle K, small, medium businesses. A guy that maybe wants to just watch his yard, he'll take one of those, they'll mount it, and we still give all the same service. It's all the same technology. It's just a box that mounts. In the retail space and in construction, they love having the tower blue lights on. It's a deterrent. It acts as a deterrent. I think there's a large runway for the ZBox. I mean, it's, it's. Yeah. We're not heavily marketing it right now. It's more like a specific use case, tighter locations, smaller businesses. For example, downtown Toronto or a major city where they're building a skyscraper, they just don't have the room for towers, so they'll put a post right at the corner and we mount the box. We have quite a few of them in different areas like that. It's tight space areas, and then long-term stuff, and then, obviously, there's the fixed install side that can come after that as well. I mean, c ameras that are there forever, right? We just take over the monitoring. If you're selling them, you know, like small volumes rather than a big box store. A big box store, you may end up installing 1,200 of these things. A ZBox might install four or six. Yeah, I'm thinking retail. Is that what the physical looks like, or how do you? No. When you talk retail, the biggest thing with them, they have all their own cameras on their building already. They want these. Here's the other side of it when you go to work for a The Home Depot or any one of them. The biggest thing is they do not want us on their system. Even because of the cyber stuff, which we spend a lot of money on cybersecurity, their biggest fear is as soon as we tie into their cameras, we could get in and see your credit card information, w hich we can't, but t hey do not want you on their network at all. Their cameras stay on their platform, and a lot of them will tie into our cameras so they can view it. They're coming the other way instead of us going that way. I think they're always going to have integrators that put the cameras on the building, and these are far out in the parking lots. They like it to take up a parking stall. They want people to know it's there. It sticks out. They use it for somebody robs a store, goes in, steals a bunch of stuff, they need that further reach out in the parking lot to see what's going on. That's where they utilize the towers. It's 100% the deterrent. Some of the ZBoxes in like a garden center or like a fire lane, [audio distortion]. Yeah, we did a unique thing with them. We got a ZBox outside the exit door. What they have is people will come in and fill a cart and park it by the exit door, and then they phone their buddy to pull the car up and they shoot out that exit door. Now, what we watch is, and it's a fire lane, so we're actually watching that fire lane. If a car's pulling up, this is taking place. We get proactive on it, call the store or call the police, and then that's another way they've used the ZBox. Just keep on that track. Just talk about the connection with 3SI, which is unique. Sure. To the industry, I think is important. 3SI is the company that started the purple dye in the money. Everybody's seen it in the movies, blows up in your face. We were at a show actually, in a security event in New York, and I said to our CTO, "We need to figure out how to share this video with the cop cars." It wasn't two weeks later, 3SI reaches out to us and this guy named Craig Frost, great guy, he says, "I'd like to give you guys a presentation." It's called DirectToDispatch. What that is, is exactly what we're talking about. Now, instead of us phoning 911, today, in our monitoring center, we just hit the DirectToDispatch. Whatever city it's in, it actually goes out, the video goes to their precinct, and then it's dispatched right to a car. The car's watching what our people are watching on their computer screen in the cop car. Now, they phone the room, and b elieve it or not, in some cities, you're 10 minutes on hold with 911. Just not even Zedcor, just literally anybody. Car accident, you could be sitting eight minutes on hold. That's how overwhelmed they are. It's became a big part of it, its massive success, and we're able to deploy that because we own our monitoring center. It's tough if you're a tower company that doesn't own the monitoring center in order to put that in. That goes back to, I think the biggest thing, we have a minute left, we have every mode under one umbrella. We're in full control, and I'm a firm believer in you got to have control of your whole business, and we're doing more and more of that. The biggest thing is, I think, where is this business going? I think you're going to have to change with the times. That's just the reality. We got a great product. We even have a unit that we can make it trailered. It's the same tower. It goes on a trailer if we have clients that want that. It's evolving. You want me to finish up with the rest of it? Yeah. We had a bunch of investors come down, Anthony was one of them, and we kind of surprised everybody at the end. We had a drone mounted to the top of the tower, our first iteration of it. We're not saying in within six months we're flying drones. My biggest thing was, is we need to make sure let's get one of the most high-end drones, high-end nests that are in the world. Let's mount it to the tower and see if our tower can power it. That's step one, right? It can, and that was a cool win, and we had this drone take off. It took off and come back and landed back by itself and everything. We're always evolving. We know that you got to be on it. That won't replace our towers, but it's going to help our towers on big job sites. You might have one, you lose visual on a tower, that drone will take off and find out what's really going on and go back to its nest. These are early things that we're looking at, and I think we've done a great job of evolving our towers from start to finish from the very first one we built, now we're putting LPR cameras on all of them, building our own backend for LPR, license plate recognition. I think we, do you have anything else you wanted to cover, Anthony? No, I think we're up on time. Reach out to these guys if you want more information or track me down or feel free to reach out to me, and I'm happy to talk about the name as well. Thanks, everyone. Thank you for coming, you guys. Appreciate it.