Hello, and a warm welcome to today's broadcast with Xer Tech, presenting its report for the second quarter of 2026. Joining us are CEO, Erik Herlyn, and CFO, Jörgen Svanström. Welcome to you both. Towards the end of the broadcast, we will open up for our Q&A session, so if you have any questions, please submit them via the form found to the right of the broadcast. With that said, I hand it over to you guys. I will be back when it is time for the Q&A. The floor is yours. Thank you very much, Elliot, for enabling us to present the report. In the next 20 to 30 minutes, Jörgen and I will present the core strategy of the company, where we are striving towards. We will focus on the main activities and achievements during the second quarter of this year, followed by an outlook where we want to go in the future, primarily in the security direction. Then, of course, we will go into some more details on the financials. Maybe let us start with slide two on the general overview and the strategy of where we are. I think we are all aware that we have got a proven platform. The X8 is a very stable platform with a hybrid propulsion, and that is really our IP that we can fly for three and a half hours endurance, and carry up to 10 kilo payload. That enables a complete new suite of applications, primarily in the defense, but also in the commercial sector. The hardware sales and the recurring revenue is growing. The system sale per unit is typically between $200,000 and $900,000, and that has been proven by several sales in the past. That is consisting of the drone itself that we consider as the enabler to generate that revenue, because payload and software can be sold because we have a platform that is so long in the air. Recurrent revenue is very important because that gives a constant stream of cash. We are actually quite proud that within five years we have been able to develop a highly complex drone system, make it very stable, developed by engineers from mainly the manned aviation. Today we are flying with several armies and navies across Europe, having in total about 15 clients using it on a day-by-day base. This is a very fast development. We have put about $20 million into it, but we are very proud that we were able to achieve that so far. That, if we can see, is going right into, in the next slide, is in a very fast-growing market. The global UAV market is double digit, and that is probably a conservative assessment of a third party. Just as a recap, where are we with our drone? The X8, through the long endurance, is right between the commodity drone, the typical full electric multicopters that are usually limited depending on the weight they have and what they carry, is about 30 minutes, maybe 50 minutes, and a few kilos. If that is not enough, clients usually go the other way. They go to the helicopter, the manned or unmanned helicopters that are far more expensive and far more complex to operate. We are right in that niche, and that is a very strong game-changing technology that we have. But the challenge for us is also to make clients aware that that technology exists. The defense market is slow. We are aware of that. We are doing, we call it elephant hunting, so we are looking for big contracts, and that takes time. Defense procurement is slow, and we have to acknowledge that. But the tickets in the defense space are very big. The core rationale we have for our clients is that the economics to fly our drone is just so much better as flying a much larger helicopter or other complex system. If we move to the next slide, we can see where we are in the security demand. You have seen that we have invited for an extraordinary general meeting to move more into the security space. Some people might wonder, "Okay, why are they doing that?" But we have to bear in mind, the infrastructures in Europe are at risk. We are facing a lot of drone overflies over critical infrastructures. These are power plants, these are rail yards, these are data centers that can be very easily attacked. At this point of time, we see that the conventional way of protecting these infrastructures within Europe, within regular security guards walking around with a torch is just not made for these kind of cyber attacks, for these kind of drone attacks that are much faster and much more aggressive than we have seen in the past. At the same time, the security market is showing a lot of labor pressure. The salaries are floored by regulatory rules. The whole security market is highly competitive and low margin. At the same time, we believe it is not very efficient. With these new threats, we believe that newer technologies can be game changing in that market. What we see, what we can contribute to that market in the future is we have got the UAV and the autonomy technology available. We have developed one of the most complex systems, multi-rotor systems in the market, and therefore we have got that technology under control. We are using, and we are fully aware of the defense and the technology relationship. We know exactly what kind of electronic warfare equipment, sensors, and software is used in the defense space to protect those critical infrastructures. It is a very normal course if we look back in history, that defense technology is later on used in the commercial sector. If we look at GPS or other technologies, they were originally developed for the defense market and is later on used primarily for the commercial market. We see that this development will also happen. That is why we do not want to develop all that technology on our own. The main value proposition is to use existing technology from our own software mainly, but also third-party hardware, sensors, drones, drone-in-a-box systems that we can bring to the table. On the other side, we are looking at different security platforms at the moment, and they have the access, and the security service expertise. They know exactly what is required, what the client needs, what the client is expecting, and they have the network and the access to those clients because they are already delivering the service to these. We believe that bringing the technology into the security market, not by just providing and developing a technology. There are others who did that already. But for going full steam and pushing that into the market can be very successful. The drone-in-a-box system that we are looking at at the moment is typically that we monitor areas, the perimeters. It could be a square kilometer or even larger if we look at power plants or others, with regular flights that are much more efficient than guards. Just imagine a drone flying over an area, looking from the sky with an infrared camera or several cameras with other electronic warfare equipment on board. That can do so much more than a security guard walking around. We analyze through our own software that data, and that could be a lot of data generated, and then do a fast respond, and that would be again by human teams. In the end, we would be an addition to the existing services in the market. If we look into the next slide, we can see how we did in the second quarter. Maybe we want to move to the next slide. The key achievements during the second quarter was the basis of the market growth. The defense expenditures again have been going up dramatically. That is really driving those markets. The market is asking for European products. There is a huge imbalance of demand from the market and also the offerings of companies that are available. We have launched the X8 PRO in Q2. Coming from 3 kg to 7 kg, flying for and a half hours is a massive achievement. That has been actually done by a lot of intelligence using new propulsion, using new electronics, improving the software. We were able now to offer multiple sensors. Now we can fly with several sensors at the same time and process the data already within the drone and provide actionable data down to the pilot. They have actually actionable intelligence in real time. These are the achievements after the first quarter that was mainly driven by the listing. This is really the first quarter, the second quarter, the first quarter that we have a standalone new listed company. I think we are also quite proud that we have been able to onboard more integrators. We are now contracted and our pilots are flying at the moment while we speak at the Black Sea for clients in that region. It is one of the largest European integrator that has assigned already two projects to us that we are both delivering at the moment and that we believe could be very interesting for the future. We are also preparing now for a large NATO exercise taking place in the Atlantic. It is a four-week naval exercise in Portugal, and we are sponsored by several NATO nations, and you can see the details in today's news release that we just published. During those weeks we will be actually at four different, in week 38, we will be at four different exercises at the same time. This is really the highlights that we are working on. I think the highlight is really the commercial validation. We're now working a lot more with our clients also on the commercial side. We've sold a system to Copperbelt, which was about SEK 500,000. We have caught quite some attention in a public demonstration where about 100 attendees, politicians, clients. We were in several TV channels and newspapers and so on. We're working quite close with Perspectum Drone the Canadian service provider doing methane gas detection. They're detecting at the moment with our drone, a pipeline going all the way from Canada, from Alberta down to the refineries in Houston. They have quite heavy activity with our drone here, and so far it's working flawlessly. For that client, Copperbelt, I mentioned earlier, we've got full beyond visual line of sight approval. I think that's the fourth or fifth BVLOS approval that we've achieved or that our clients have achieved already. Now they're able and allowed to fly 50 km long power line stretches all across the jungle and mountainous areas that are hardly accessible in Zambia. As mentioned, the X8 PRO upgrade. It's a huge improvement, and the one thing is that we can carry more. The other thing is that we can carry the same, but have a lot of spare power. Particularly when we're flying for naval clients, even if we just have 3 kg or 4 kg on board, we've got a lot of contingency power to take off and land in strong wind conditions, sea states, and others. We're also making advances on the X12 development. We have a German integrator of a 12 kg direction finder that is heavily pushing us to develop that system, because the X8 is not capable of carrying 12 kg for a reasonable time. It could carry it did carry it, but only very short. The X12 will be able to carry 20 kg for a three-hour period. We're using a European-made engine for that. The engine that we're using for the X8 at this point of time is actually coming from the U.S. There are demands from NATO clients to even limit the supply from North America. That is also one reason why we're pushing to get the engine from the U.S. We've expanded quite a lot. We've hired new people, primarily on the technical side. We've also hired a Chief Commercial Officer recently. Just very shortly after we hired him, we had to experience that we do not agree on the strategy in sales. We decided to make a quick decision and to bring that to an end. We have gained some contacts that we're very glad of, that we're continuing, but we're not doing that with the CCO anymore. That you've probably seen that we've taken them off the website already. The outlook is really we want to expand. We are looking for the large contracts in defense, and that is why the revenue can be very volatile. It can be very low in one quarter, and it can be very high in the next quarter, and that may continue for another few quarters in the future because our main goal is not to get the small contracts. Our goal is to work with the large integrators because we know that number one is that they can bring us to the clients for the very big contracts. The large integrators are not interested in small contracts. They are hunting for the very big, and we want to be part of that. That comes along with small contracts to get to know each other, to test things just as we are doing now, and you will read more about that in the future. We can actually offer an integrated solution together with these integrators. We consider our drone and the electronic warfare or the commercial payload, and the software as a solution. However, from a client perspective, a drone is always just a part of a surveillance system that is accompanied by ground support, by vehicles, by a much larger surveillance system. We will be looking to see some more traction at REPMUS. That is the next big step that will start actually in the coming days and will end on September 25. We have an AGM scheduled for September 17 to vote on the articles of association. The priority really is to convert the existing strong pipeline that you have seen in the sales update into sales to execute that and deliver successfully and expand the partnership. We have strong partners, but we will hopefully add more in the future so we can industrialize that and scale in the future. That is really what we are looking into. Maybe I can hand over to Jörgen CFO of Xer Technologies, to comment on the financials of Q2 or H1. Yeah. Thanks, Erik. I suppose most of you have already seen the figures, but I think we should highlight that the revenue is SEK 6 million for the first half year, which is considerably much more than last year's same period. Looking at Q2, the revenue that we did have in Q2 was mostly for projects we did with clients. Sometimes clients want to test things or extended demonstrate, and we are able to invoice for that. I would say also that if you look at other external costs for Q2 and compare it to the first half year, we have to first realize that SEK 14.3 million is more of an accounting cost related to the reverse takeover, a non-cash accounting effect. Then if you look at Q2, it is more in line with what we feel is the normal run rate, of course, that we have. Staff costs also a little bit affected by one-offs. I would say if you are looking for a run rate, it is a few million less than the first half year total. Yeah. So that gives us a net result of SEK - 37.8 million. I would say that a lot of that is affected by the reverse takeover. So Q2 is more of a real sort of quarter than the half year result. If we look at the cash flow, we can say that of course we have a positive cash flow for the period half year. But that is of course because we did a share issue in conjunction with the reverse takeover. That was cash. We took in SEK 36 million roughly. Then of course we also acquired about SEK 15 million. That was the remaining cash in the companies we did the reverse takeover with. I would say that, of course, the real cash flow is not positive 27. If you look at the operating activities, we have SEK - 18 million for the first half year. We hope to improve this, of course, but mainly with revenues. Right, Erik. I think it is time for the Q&A session. Sure. Perfect. If there are questions, please go ahead. Perfect. Thank you for that presentation. Really interesting. We now open up for a short Q&A session. As mentioned earlier, if you have any questions, please submit them by the form found to the right of the broadcast. We can begin with the first question, which is that operating costs more than doubled to SEK 47 million for the half year. How much of that is one-off tied to the reverse takeover and listing, and what is the underlying monthly cost base going forward? Yeah. Like I said, we have already a little bit more than SEK 14 million in accounting costs. I would say that if you look at Q2, that is more of a real run rate that we have. I think it is difficult to say what is the real run rate because we are also building a few drones because we need drones ourselves as well to use for demonstrations and so on, to participate and also for projects that we do that we do not sell. So, it is a difference if we do not build anything and if we build anything. So there is really no real burn rate per se, but I would say a naked burn rate. I do not know, Erik. Maybe SEK 12 million, SEK 13 million per quarter is a good gauge. Yeah. Without any revenue, of course. We are currently building up 10 drones. We have purchased most of the material for that, and that also has an impact on the financials of the Q2 because some of these components have half-year delivery time. We have received some of the components and are building now, and the expectations, of course, that we will sell them. Yes. Thank you for that. Sorry, I just want to add as well that, of course, we still have some development costs that we capitalize. I think the burn rate is maybe at least it is a little bit more true than what the actual operating cost is from an accounting perspective. That is why I talk about the cash more than the operating cost per se. Yes. Let's see. The next question is regarding the potential SEK 230 million, the mining package in North America. Do you currently have the production capacity to deliver that order if it materializes? Would it require a production ramp-up? If a ramp-up is needed, what would the approximate cost and timeline be? A large portion of the volume of that is actually also payload that we purchase and also that the revenue, the delivery is going into several milestones within two years. Yes, we do have the capacity to produce all of that in-house. We would have to obviously purchase the material to build the drones and to purchase the third-party payload and software. Bear in mind that we ask at these kind of contracts for 50% payment at signing of the contract, which typically covers all of these costs. Yes. Thank you for that. More broadly, looking at the pipeline and expected growth over the coming years, do you see a need to scale production capacity regardless, and how do you plan to finance any such expansion? The expansion of the production would work that we have suppliers abroad and who produce actually pre-assemblies. We would still have the final assembly here in Switzerland. That does not take too much time. Once we have got the sub-assemblies, the engine system, the cable harness, the electronics, the PCBs and so on, the assembly here in Switzerland would not require much expansion. If so, we could do that relatively easy, even in the same building. We do not see any challenges here. It is more about building up the most economic portfolio of sub-suppliers who can do and who can produce these sub-assemblies. One of these sub-assembly provider is in Italy, who is doing it at quite low cost and good quality. Yes. Also, I think to build the sourcing to match the scale. Yeah. The vendors will align with our needs. Yeah. In the defense space, what is expected is that countries ask assembly in their own countries. If Spain, for instance, is ordering 20 drones, they will expect the final assembly within Spain. That is something that we've prepared in our production process all the steps for, that we can actually relocate the final assembly into those countries. That is what we're doing at the moment for our drone as well, that is going into a conflict zone in Eastern Europe. That is actually not manufactured in Switzerland for that reason and for export restrictions from Switzerland. We have experience in that. Yes. The X12 program has now started testing a European-made dual-use engine. How dependent is the X8 PRO today on non-European components? How important is a fully European supply chain for tenders you are in? Okay. I think that's a very important question. I think the critical thing is that no component where information is processed must be from non-European. You've probably seen, I think it was last week, where the British Armed Forces found out that some of their drone LIDAR systems were passing on information to China directly. This is because some of the components of a camera were from a Chinese manufacturer. This is highly sensitive subject. The other components are less restrictive. For instance, the electric motors. This is more a question of the security of the supply chain, where then a dual sourcing from Europe is required. But armed forces are not asking for a European electric motor at this point of time. To come back to the question, from the components, between 5 and 10% of the component cost is non-European at this point of time. Yes. Thank you for that. You appointed a Chief Commercial Officer on April the 1st and parted ways in Q3 over a lack of alignment with the commercial strategy. Yeah. Can you go a little bit in-depth about that disagreement and who owns the sales today? Okay. Salespeople are sometimes wild people, and I think you want wild people as salespeople. Sometimes this can go too far, and we've therefore decided after a very short period of time to terminate the agreement and do the sales as we did before David Henschel, the CCO, was around. The sale is currently under the responsibility from Gökmen Çetin, who did that before over years, and he is supported by several other individuals from our company who are doing that as a part of their assignment. Are we looking into additional salespeople? Yes, but I will take it slow. I will work with people that I do know and have experience with and I do trust in the future going forward, and it may take time until we have a new sales staff on board. What we are looking more for is we are trying to convert the existing leads into revenue. That is our main goal for the moment. Having a business development manager is not the most important thing for us. It is to have an experienced salesperson, and that is what we have with Gökmen. We have hired recently another person for sales and marketing who seems to be very good and very successful and we have just upgraded him for the 1st of September. Thank you for that. Now for the final question. You are calling an extraordinary general meeting to amend the articles of association, and you mentioned evaluating whether to apply your defense and EW expertise to protecting commercial infrastructure. Are the two connected and does broadening the business risk pulling focus away from the defense pipeline? Okay. We want to continue with the current setup of Xer with the products, with the clients, with the projects for the use cases as it is. There should not be any change on that. What we are looking into is leveraging our know-how and our technology into the security market because we truly believe that there is an opportunity for a game-changing company, and somebody will do it, and it is a question of who and when. We definitely do not want to take any focus away from Xer at this point of time. Yes. Perfect. That was the last question for today. With that, we wrap up the broadcast. A big thank you to Erik and Jörgen for the presentation, and thank you to everyone who submitted questions and followed along. Now we finish off with Erik having some closing words. Yeah. Thank you very much for your trust and your interest in our company. I think it is highly interesting because we are in an extremely fast-growing market, which is defense. We are in the drone sphere that is a hotbed of purchasing at this point of time. We have the product, it is proven, it is working, and we have the clients that we are working with, more than a dozen. So now it is all about scaling, and we need some time for that and I am looking forward, together with you as investors, to take that journey. Thank you very much.