Welcome everyone to this session of our June 2026 Small Cap Conference. I'm Alex Hantman, I serve as an equity research analyst here at Sidoti & Company. Today, we're pleased to be in conversation with CEO Jolie Kahn of AVAX One, ticker AVX. During the presentation, please feel welcome to submit questions using the Zoom Q&A interface at the bottom of your screen. After the presentation, we'll open to your questions. With that, Jolie, I'll turn it over to you. Well, good afternoon, everyone, Alex, thanks for having me today. We'll tell you a little about AVAX One. We are listed on the Nasdaq Capital Market under the symbol AVX, we are the power first digital infrastructure at the intersection of AI HPC and the on-chain economy. Let me tell you a little more about the company. We were founded back in 2021 when we first went public as an AgTech company. We transitioned over to the Fintech economy, first by mining Bitcoin, then last fall, we were honored to be joined by the team at Hivemind, we became an Avalanche treasury company for the Avalanche coin. We also, as part of that business plan, have sought to bring other businesses online that would benefit from being on-chain with the Avalanche blockchain, which has some unique and wonderful aspects to it. As part of this initiative, we've also looked to increase shareholder value through a background that I and several others in the company have the appropriate background. We are also data center centric, we are building our first data center in Alberta, Canada. If we could have the next slide, please. Why AVAX One? As I mentioned, you get exposure to a category-defining blockchain. Avalanche is emerging as the preferred settlement layer for tokenized assets and institutional finance, supported by global asset managers, Fintech platforms, and policymakers. Avalanche is also purpose-built for the institutional on-chain finance. It was designed from inception to operate at the intersection of public markets regulation and blockchain infrastructure. Power is an issue in the AI infrastructure race. Access to cost-efficient, behind-the-meter power in energy advantaged regions such as Alberta, Canada, is a primary competitive advantage for AI infrastructure, we own it at the site level through our various relationships up in Alberta. Also, by the size of the data center we're going to do, it is much easier to find pockets of 10 MW power rather than to find one sole source with 100 MW plus. This is the AI HPC infrastructure that the hyperscalers cannot fill. The gap is because we are modular behind the meter. We're deployable in months, targeting the 1-50 MW segment, which is really our sweet spot, where latency, data sovereignty, and capital efficiency constraints make hyperscale unworkable. There are also various regulatory levels in Alberta. By keeping our sites just under that 10-megawatt level, we at a lower level of permitting costs and time than if we were a hyperscaler. We also have experienced leadership built for complexity. We have crypto-native management and board members with deep experience in regulation capital markets and operating at scale in complex, highly regulated environments, which is also to our great advantage. We are also aligned with the secular regulatory and adoption tailwinds. We are positioned to benefit from accelerating U.S. regulatory clarity and institutional adoption of tokenization, stablecoins, and general on-chain financial infrastructure. We have a three-pillar model. As described at the beginning of this discussion, we have roots in Bitcoin mining. As of last November, we initiated our Avalanche treasury-centric model. We have also more recently engaged in the AI HPC modular data center space. We are tier 3 ready. What that means is that our data centers meet certain requirements where they will have uptime of over 99% and two different kinds of redundancy and power availability to support that 99%-plus uptime, one being battery-operated systems that are known as BESS. The second one being the ability to tie into the grid in the off chance that we need to do so. Our initial facility in Alberta will be at the 10-megawatt level, as I described. Target client deployment for the first iteration is the end of Q1 from 2027. Our time to revenue because of that is in the nine to 18-month range, as opposed to what is seen with the hyperscalers, which is typical 36 to 60 months. Our behind the meter power cost is approximately $0.04 per kilowatt hour, which is a very advantageous aspect. We are looking to expand into these energy advantage regions, starting with Alberta, with brownfield natural gas sites. We are replicable in the five to 50 megawatt blueprint across North America. The Bitcoin mining is a smaller iteration, although we did just announce our first test case of the AI HPC modular data centers using a very small but significant 100 KW of excess capacity at our Redwater Bitcoin mining site. Our current hash rate is small. We are at about 300 peta hash per second. We just acquired 220 S21 Pros in April 2026 and are running those. Our annualized mining revenue rate is small but consistent at $4 million. In the Avalanche treasury, we hold approximately 14 million coins. Our active staking is in excess of 90%, which means that rather than just holding the asset hoping for appreciation, we actually generate revenue off the asset on an ongoing basis, which covers most, if not all, of our operating costs. Our annualized net staking yields is approximately 6%. Next slide. We have started talking about our AI HPC opportunity, and I love the title of this slide, "The Missing Middle." While the hyperscalers take care of the top end of the market, the middle part of the market, that one to 50 megawatt space, has been largely ignored. There is lots of companies that need capacity within that space. That puts us at a competitive advantage as there are few people providing power in that space. There are latency constraints from the hyperscale model that fall short when looking at this missing middle. Surgical robotics and others require single-digit millisecond response. A round trip to a Central Texas hyperscale facility adds 60-100 milliseconds before any compute happens. Because we can be modular and we can thus take advantage of different varied locations geographically, we can avoid that extra lag time. Data sovereignty is another issue. In parts of the EU and other nations throughout the world, including various U.S. states as well, healthcare, finance, and government workloads are behind regulatory walls that hyperscalers cannot necessarily cross. There's also operational resilience. Standards now cap how much critical infrastructure can depend on a single provider or region, as I described with the various thresholds in Alberta. A structural limit hyperscaler is not designed to solve this because they're obviously over a 10 MW or any other numerical threshold. There's also capital efficiency through our model. The demand segment of the one to 50 MW space cannot justify hyperscale economics. Conventional colocation can't deliver dedicated capacity at the right price or timeline. As I said, and as we looked, we're at nine to 18 months to come to market versus a hyperscaler, which could be two, three, or five years. Very important. We're also cheap, a lot less expensive per megawatt because we do not need the scale, whether it be for cooling or for types of generators we can use. We can use much more capital efficient equipment. We're a power-first infrastructure model. What that means is that we're using behind the meter natural gas generation to eliminate the primary bottleneck, which is facing the larger AI HPC data center deployment. We have behind the meter power, as we've discussed. That power, rather than drawing from the utility grid, enables costs at $0.04 per kilowatt hour versus much higher numbers. Again, we look at the fact that we are not subject to the AESO interconnection queues that can take 24-60 months. Clients can secure power and land without dependence on a third-party utility, which is a key component to our model. Modular and scalable at the five to 10 MW increment through prefabricated power and compute modules with standardized interconnects. This approach provides a replicable blueprint that can be deployed across North American sites while maintaining capital intensity well below the $8 billion-$20 billion per gigawatt cost associated with hyperscale construction. We discussed the Tier 3 architecture, which is really key. We're not dependent on the grid. We're using much more environmentally friendly energy based on natural gas. We have enormous advantages being based in Alberta. There's abundant low-cost natural gas and brownfield sites within place generation. The current Bill 8 accelerates permitting for behind the meter self-generation projects, while the province's cooling conditions can reduce the amount of cooling necessary versus warmer weather markets such as Texas. Sites located within 50 or 100 miles of Calgary benefit from access to logistics infrastructure talent, and a local client base. There's also monetization flexibility. Each megawatt of capacity can be dynamically allocated across AI HPC workloads, Bitcoin mining, and Avalanche compute to name a few, allowing operators to direct power through towards the highest value application at any one time. This also means that as conditions change, those priorities can be reallocated and altered. Very important as you're looking at a landscape that is never fixed and is always subject to variation. The Alberta 10 megawatt flagship development progress. We are looking to establish this is Alberta's first dedicated behind the meter microgrid AI HPC data center. We are targeting Q1 2027 for initial client deployment. The project specs are very simple. The site capacity is 10 MW total with a minimum seven megawatts towards mission critical power. The reliability standard is Tier 3, as previously described, and primary power is the behind the meter natural gas generation, which is the brownfield priority. We have the resilience stack, and the location is described in the pricing. The cost we approximate to be between $30 million to $35 million, structured as milestone tied payments based on progress. The revenue model is long-term infrastructure agreement with an edge compute client. We've already started looking and will continue to qualify potential clients as we move down this nine-month trajectory. We talked about the target delivery as well. Let's talk about for a moment Avalanche and the on-chain economy. The infrastructure adoption and RWA leadership is very prominent. Concerns such as Apollo, Citi, JP Morgan, and Kohlberg Kravis Roberts are looking toward Avalanche for tokenization and custom blockchain deployments. There are also robust Web3 solutions available which are fully customizable and interoperable systems. The superior versatility from the sub-second time to finality compared to Ethereum's 6 to 12 minutes and compatibility with ETH smart contracts and developer tools. There's also size and scalability. Currently, there are approximately 1,700 validators, over 800 live decentralized applications with many more in the pipeline. The blockchain uses just 8.2% of Ethereum's energy and less than a thousandth of a percent of Bitcoin's, making it highly efficient and sustainable. Avalanche tokenization industry partners. If you look at both the asset layer and the infrastructure layer, you can see that many prominent names are now involved with Avalanche, and we're honored to be able to support those. The Digital Asset Treasuries playbook is an interesting one. The original thesis for these DATS was that they would accumulate and be passive investors in the various coins and sit there and look toward capital appreciation. The thesis being that over the long term, that these Tier 1 cryptocurrencies will continue to appreciate consistently. Capital formation for us is raising capital to acquire AVAX, and then the core yield engine, we stake the AVAX to generate the protocol native yield, which as I mentioned earlier, is what we use to fund our ongoing operations. There's also the compounding and cash flow aspect. That's with having the holdings not only generate free cash flow, but also to increase in value over time as the original thesis states. We are looking to reinvest to build the on-chain Fintech ecosystem, which is bringing, as I alluded to earlier, various technologies that would benefit from Avalanche's unique aspects and bring those businesses onto the blockchain. It's a self-reinforcing model designed to grow AVAX ownership, generate lead yields, and also build institutional on-chain financial infrastructure. Multiple levers to generate revenue and sustainable on-chain yield. We can generate yield through the complementary mechanisms enabling discipline optimization across market conditions. We have the native AVAX staking, we have liquid staking and staking derivatives that we can also use. We also have the MEV-related rewards and validator optimization, which is incremental yield, and liquidity provisioning and ecosystem opportunity, which is our methodology for selective yield enhancement. We have a chart here. As you can see, as of right now, other than Solana, with the tokens which do have staking, Bitcoin not being one of them, that we're the second highest in percentage, and that's a gross percentage. The reason that we say we get approximately 6% yield is that we have a little over one and a quarter percent of expenses built-in that we net out before we disclose our actual net yield. Institutional-grade DeFi opportunities. One of the interesting aspects that we have is these decentralized finance operations and opportunities. One is lending and borrowing. We can be capital efficient in yield through established audited protocols. There are several out there. There are DEXs and liquidity infrastructure, which is fee generation via selective liquidity provisioning on Avalanche-native venues. We also have RWAs and tokenized finance and liquid staking and yield products, which give enhanced flexibility while maintaining exposure to core staking rewards. We offer a mature, institutional-ready DeFi ecosystem that enables selective risk-adjusted participation across multiple financial primitives. Generalized investment highlights. We're the first public market gateway to Avalanche. There's one other that has recently come onto the public markets as well, and we welcome them and believe that there is lots of support now for Avalanche, and we'd like to see that kind of support in the ecosystem. We offer a regulated pure-play exposure to the Avalanche ecosystem and the growth of on-chain finance, and we've been doing so now for the better part of a year. Modular AI HPC infrastructure in high demand, supply-constrained markets. Power-first data centers in energy advantage regions serve the fast-growing inferencing enterprise compute segment. We're deployable in months, contracted at a spread above firm power input cost. There are very strong regulatory and industry tailwinds. There's the institutional adoption that has been driven by the U.S. regulatory momentum of the GENIUS Act, the CLARITY Act, Project Crypto, among others, and growing demand for compliant tokenization platforms. We also have crypto-native, institutionally experienced leadership. Both our executive team and board combine deep digital asset experience with proven public company and capital markets execution capabilities. We have attractive yields and compounding opportunities through the AVAX staking, which has historically delivered higher native yields than Ethereum and Solana. Now Solana's a little better, but we're very close. With in-kind rewards that enable long-term AVAX-per-share compounding. We also have behind-the-meter power ownership as a competitive modality. AVAX One owns the power purchase agreement and on-site generation at each facility, a scarce, hard-to-replicate asset in a market where power access is the primary constraint on AI infrastructure growth. With that, I thank you all for your time, and happy to answer any questions that come through to Alex. Great. Well, thank you so much, Jolie. A lot of good context there. We have a question from the audience that I think you did a great job starting to answer. It's about the rationale behind building your first data center in Canada. I think you went over several of the points, but maybe we could expand the question to talk about how easily you can expand from that first data center. Does what you mentioned about applying to the first data center also affect your ability to expand quickly? The way we're positioning this is, I mentioned in Canada, especially Alberta, the attractiveness of staying just a shade under 10 MW. That's per facility, not per entity. What that means is, with all the availability in that corridor, which is very close to a very major dark fiber network, we can pick up multiple sites. One of the things we do when we're evaluating sites is look to see how many other potential sites are contiguous or very nearby. What we're doing is we're looking for one that's close to, let's say, nine others, just because 100 MW seems like a realistic goal to achieve. We look at a site, we look at finding others that are nearby, so we can basically build the first one, and then basically, for lack of a better concept, rinse and repeat. That's really the model we're looking to follow, and that means we're replicable. We do one, we know what we're doing, we see how it works, and it's also a consistent message to the marketplace. Look at us in that sweet spot of one to 50 or one to 100 MW because we can give you 10, but we can go nearby and get you another 40. That's the way we're looking at it going forward. That's great. I think you had some news this week as well in terms of de-risking the scale-up with the Redwater inferencing pilot. Could you tell us a little bit more about that and how that feeds into your proof points? Sure. That is a proof of concept on a very small scale. As we said, we have about 100 KW of excess capacity available at Redwater, so we're using that as a first inference to test the model. We will be up and running with that within 12 months. We've ordered the equipment, and that will give us some good initial feedback data. As I've said all along, we are going to be very transparent. We will disclose as we move forward on these various iterations, and we will be providing at every stage. We will be transparent to the public and letting you know how we're doing and whether we're doing a great job, a not great job moving forward. Great. Thank you. We have a question also around the financing of where you are now and how well-financed you are for future data centers. Could you talk a little bit about that? Jolie, I think you might be muted there. I'm unmuted. Sorry about that. We will be starting with financing. We have about $25 million cash on the balance sheet, so considering that an entire data center cost will be between $30 million and $35 million, we will be well underway with cash on hand. We will, during that process, simultaneously be looking to bring in clients. Once we have tenants in place, we will be very able to go out and achieve what we hope will be bank financing, traditional bank financing, which will be at very attractive rates. That's going to be extremely helpful. We also have AVAX that we can sell if we want to fund more internally. Great. Thank you. I think, in that regard of sort of making use of the bandwidth that you have, could you talk about the process of getting a tenant, and how that might be progressing so far? Sure. We have several different sources of advisors we're using to help find tenants. We're also talking to some investment banks that have a lot of contacts in the area. That's going to really increase our ability to spec various tenants for the sites, and we'll be looking to see what they want to do. We're going to be looking at credit worthiness, all of the very general aspects that you would expect us to consider in a situation such as this. We have several tenants that we've identified, and that we hope to be qualifying shortly and hope to be able to announce one well in advance of that end of Q1 2027 date. Very exciting. Well, Jolie, as we come up on time, maybe to summarize for investors who might be new to AVAX or new to this part of the AI infrastructure stack, could you tell them why you think now is a great time to invest in AVAX One? For two reasons. One, we believe very strongly in the infrastructure for the Avalanche ecosystem. We believe that right now when prices are attractive, it's a good time to get in. We believe that we represent a very good investment relative to that. We strongly believe and we support that ecosystem, and we support the potentialities with the appreciation of the coin, but also the further institutionalization of the blockchain. The other reason is we're all aware of the demand for AI HPC data centers right now, and because of our unique niche within that ecosystem as well, we believe we're well positioned to provide a good value and a good investment for our shareholders and potential investors in the future. With that, we're at time. Thank you so much, Jolie, for sharing the AVAX One story with us. I'd also like to thank everybody listening for spending time with us today. Thanks so much.