Hello, everyone. Thank you for standing by.

Good afternoon, and welcome to the PowerBank fiscal third-quarter 2026 financial results and corporate update conference call. My name is Megan Haley.

At this time, all participants are in a listen-only mode. After today's presentation, there will be a question-and-answer session, which will feature previously received questions.

Participants of this call are advised that the audio of this conference call is being broadcast live over the internet and is also being recorded for playback purposes. A webcast replay of the call will be available approximately one hour after the end of the call and accessible on the Investor Relations portion of our website for access for 30 days.

On Friday, the company issued a press release for its financial results for the fiscal third quarter ended March 31, 2026. A copy of that press release can be found on the company's website at powerbankcorp.com under the Investors tab.

Joining me on today's earnings call from PowerBank's management team are Dr. Richard Lu, Chief Executive Officer, and Sam Sun, Chief Financial Officer.

During this call, management will be making forward-looking statements, including statements that address PowerBank's expectations for future performance or operational results. Forward-looking statements involve risks and other factors that may cause actual results to differ materially from those statements.

For more information about these risks, please refer to the risk factors described in PowerBank's annual information form, most recently filed annual report on Form 40-F, and subsequent periodic reports filed with the SEC, SEDAR+, and PowerBank's press release that accompanies this call, particularly the cautionary statements in it. The content of this call contains time-sensitive information that is accurate only as of today.

Except as required by law, PowerBank disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur after this call. It is now my pleasure to turn the call over to CEO Dr.

Richard Lu.

Thank you, Megan. Good afternoon to everyone on the call.

Very happy to be here. Really appreciate everyone's attention to the company.

PowerBank continues to execute on a clear strategy: scaling up development and EPC platform, while steadily expanding our portfolio of long-lived, cash-generating IPP assets. We are also actively adapting to a fast-evolving regulatory and market environment in North America, particularly in the U.S., where policy and tariff dynamics are influencing project economics and timing.

Operationally, during the quarter and subsequent to quarter end, we made progress across several key areas. First is the construction momentum.

In March, we announced the spring mobilization of nine projects in New York State, including Jordan 1, Jordan 2, Elmira, Newfane, and Camillus, among others. These projects represent a combined generation capacity of 42 megawatts of solar and 21 megawatt-hours of battery energy storage.

Spring mobilization marks the initial stage of construction, including site preparation, and we are pleased to have this activities underway. Second, safe harboring of ITC eligibility.

Our procurement team have secured 15 late-stage distributed solar and energy storage projects in New York State, executed in December 2025, has positioned those projects to remain eligible for U.S. federal investment tax credit under the One Big Beautiful Bill Act.

Nine of those projects broke ground this spring, having met the IRS physical work test ahead of the July 4, 2026 deadline. The estimated ITC value associated with the safe-harbored project is approximately US$65 million, with an estimated portfolio construction value of approximately US$168 million.

Third, new partnerships and growth initiatives. In April, we announced a letter of intent with NoDEAC Corporation to leverage PowerBank's portfolio of solar and BESS sites across North America for the deployment of distributed AI computer infrastructure, i.e., edge data centers.

We also executed a lease agreement on the New York Calkins Hill Road project. That's a 5-megawatt hybrid solar plus battery energy storage project in upstate New York, eligible for incentives under the NYSERDA NY-Sun program and the retail energy storage incentive program.

Fourth, the Ontario BESS milestone. Our SF06 battery energy storage project in Ontario achieved commercial operation on April 20, 2026.

This is a very significant milestone and adds a new recurring IPP revenue stream to our portfolio and a long-term contract with the Ontario IESO. For the additional two projects, [NY03?]

and [OZ01?] , the Ontario LT1 BESS contracts, the timeline remained dependent on permitting process, and we are actively managing those proceedings.

Fifth, strategic partnerships and incentives. On March 3, we announced an agreement with GrandBridge Corporation, a local distribution company in Ontario, to jointly develop and invest in solar energy and battery storage projects within the LDC's territory in Ontario, creating a collaborative framework for projects with nameplate capacity of 2 megawatts or greater.

In addition, NYSERDA approved incentives totaling approximately US$3.4 million across Elmira, Jordan 1, and Jordan 2 projects, further strengthening the economics of our New York pipeline. Stepping back, we continue to see a large addressable opportunity set.

As disclosed, our total development pipeline is approximately 1 gigawatt-hour of solar and 1 gigawatt-hour of battery at this moment, including 58 megawatts under construction and 164 megawatts in advanced development across solar PV and battery storage, with the balance in early-stage development. With those significant areas, then I will turn it over to Sam, our CFO, to review our financial results in more detail, and we'll come back with some commentaries at the end.

Thank you. Sam, if you could take it further.

Sure. Thank you, Richard, and good afternoon, everyone.

Unless otherwise stated, all figures are in Canadian dollars and are presented in thousands in our filings, I will refer to them in millions. Third quarter fiscal 2026 revenue was negative $34,000, compared to $4.7 million in the prior-year quarter.

The result reflects a revenue adjustment of approximately $2.5 million in connection with the contractual repurchase of certain project entities, the Greensville and Highway 28 projects, following the exercise by Qcells of the conditional sell-back right subsequent to the quarter end. Management determined this represent an adjusting subsequent event as of March 31, 2026.

Excluding this adjustment, EPC services revenue was $949,000, and IPP production revenue was $938,000 in this quarter. For the nine months ended March 31, 2026, total revenue was $22 million, compared to $23.9 million in the prior-year period.

EPC services revenue was $14.7 million, development fee revenue was $882,000, and IPP production revenue was $6 million, up from $5.8 million in the prior year, reflecting improved production levels across our operating solar facilities. The other services contributed $570,000, up from $38,000 in the prior-year period.

Turning to profitability, the nine-month gross profit was $7.8 million, or 35% of revenue, compared to the $6.2 million, or 26% of revenue, in the prior-year period. This meaningful margin expansion reflects a more favorable revenue mix and improved operating discipline.

Operating expenses for the nine months ended March 31, 2026, were $20.1 million, compared to $30.7 million in the prior-year period. The prior-year period included a $7.8 million impairment charge and did not recur this year.

The current year period included $2.1 million of inventory write-offs related to project cancellations, $933,000 accounts receivable write-offs, and $578,000 in contract cancellation fees. Net loss for the nine months ended March 31, 2026, was $12.2 million, or 31 cents per basic share, compared to a net loss of $34.7 million, or $1.1 per basic share, in the prior-year period.

For the third quarter alone, net loss was $5.5 million, or 12 cents per share, compared to a net loss of $6.5 million, or 21 cents per share, in the prior-year quarter. Adjusted EBITDA, a non-IFRS measure, was a loss of approximately $3.8 million in this quarter, compared to a loss of approximately $3.6 million in the prior-year quarter.

For the nine-month year-to-date, adjusted EBITDA was a loss of approximately $1.3 million, compared to a loss of $1.3 million in the prior-year period, too. Please refer to our MD&A for the reconciliation and additional detail.

Turning to liquidity and balance sheet, as of March 31, 2026, we had cash of $11.3 million, compared to $7.6 million at June 30, 2025. Total current assets were $36.7 million, and current liabilities were $26 million, resulting in positive working capital of $10.7 million, improved from a working capital deficit of $2 million at fiscal year-end June 30, 2025.

Total assets were $135 million at quarter end, total liabilities were $106 million, and total equity was $29 million. Long-term debt, including current portion, remains primarily project-level, non-recourse financing associated with our operating assets and projects under construction.

For cash flow perspective, for nine months ended March 31, 2026, cash used in operating activities were $11.4 million, cash used in investing activities were $5.8 million, and cash provided by financing activities was $21.1 million, resulting in a net increase in cash of approximately $3.9 million during the period. We remain focused on disciplined capital allocation as we execute our near-term construction milestones, advance late-stage development, and selectively monetize assets while pursuing growth in our IPP base.

That concludes my remarks. I will turn the call back to Richard.

Thank you.

Thank you, Sam. Before we opening up the call to questions and answers, I'd like to make some remarks on the PowerBank's current condition and the market.

I will illustrate three takeaways in relation to PowerBank. The first one is that PowerBank demonstrated a very strong resilience in such a volatile working environment against strong headwinds, and we continue to operate, while many companies are in financial difficulties, are in the state of liquidating their assets.

We remained relatively flat and did not deteriorate, even marginally improved, compared to the same time 12 months ago, same period. The second takeaway, when you're looking at PowerBank, I would say that we further demonstrated that PowerBank has a very solid bench strength.

It is the team that in the last 14 years have consistently delivered and continue to execute with our experienced professionals in both Canada and the U.S. If you look at the numbers, revenue same period time was $22 million compared to $24 million, marginally flat, but the gross profit was $7.8 million compared to $6.2 million, we were able to improve our profitability.

In the meantime, if you look at the operating expense, the same period time was $20 million versus the same time last year was $30 million, we'll also be able to, at the difficult times, significantly reduce our operating expense. The net loss was $12 million compared to a net loss of $34 million last the same period time, and due to a series of management initiatives.

Also our adjusted EBITDA, the loss is $3.8 compared to the same year of $3.6, marginally remain the same, right. Our liquidity certainly improved.

We have cash of $11.3 million, and the same time last year was $7.6 million, right. From a cash flow perspective, that we were able to have a net increase of cash about $4 million, right.

That demonstrate the company's very strong bench strength to prepare this company continue to operate in a difficult headwinds environment, ready for the next opportunities that coming in the coming years. The third takeaway is the great potentials that the company is building.

That our traditional business in building solar farms and battery storage projects in both Canada and the USA remain strong. The new demand of electricity is from the data center market, specifically for us, giving our network of assets, giving our experience with property owners, with local permitting authorities, with the utility interconnection distribution systems, that we are well positioned to dwell in the edge data center area where speed to power is the name of the game today.

As we have about 100 operating sites that we have dealt with more than 50 municipalities, permitting authorities, and we are in material discussions that how do we leverage our experience, our network, and our assets to further advance that the business in the power supply to the data centers in the coming years. Those are the three takeaways I would like to share with everyone.

Now I'd like to turn the call over to the operator so that we can begin the questions-and-answers session. Megan.

Thank you, Richard. We'll just take a moment to pause and see if there are any questions from the audience.

Okay. It seems there are no questions for management at this time.

We are always available for any questions over email or phone, please do feel free to reach out to us at any time. I'll pass it back over to Dr.

Liu.

Thank you so much for everyone participating. One thing that from management, the board, that can assure our shareholders and our investors that we are very resilient, and we have a very strong bench strength, and we continue to execute our existing pipelines, meanwhile developing potential opportunities.

We look forward to seeing you the next time at our year-end earnings call. Thank you.