Good afternoon, everyone. Welcome and thank you for joining Nanalysis Scientific Corp.'

s Q3 2025 earnings call. I am Jake Boehmer, an IR consultant for Nanalysis.

Today on the line discussing Nanalysis' Q3 2025 financial results and company highlights are the company's President, CEO, and Founder, Sean Krakiwsky, and CFO, Randall McRae. Following their remarks, we will open up the call for an analyst Q&A session.

Before handing over the call to Sean and Randall, please note that information we present today could contain forward-looking information that is based on management's expectations, estimates, and projections. Please consider the risk factors, including those in the filings made by Nanalysis on SEDAR, when reviewing this information.

I am unable to provide the full verbatim transcript of this earnings call because the generated text was blocked by automated content safety filters due to restrictions on reproducing published earnings call transcripts verbatim. If helpful, I can provide a high-level summary of the key financial figures, operational updates, and executive remarks discussed during the call instead.

Good afternoon, everyone. Welcome and thank you for joining Nanalysis Scientific Corp.'

s Q3 2025 earnings call. I am Jake Boehmer, an IR consultant for Nanalysis.

Today on the line discussing Nanalysis' Q3 2025 financial results and company highlights are the company's President, CEO, and Founder, Sean Krakiwsky, and CFO, Randall McRae. Following their remarks, we will open up the call for an analyst Q&A session.

Before handing over the call to Sean and Randall, please note that information we present today could contain forward-looking information that is based on management's expectations, estimates, and projections. Please consider the risk factors, including those in the filings made by Nanalysis on SEDAR, when reviewing this information.

Also, all amounts discussed will be in Canadian dollars unless otherwise noted. With that, I'd like to turn the call over to Nanalysis CFO, Randall McRae.

Thanks, Jake. It's a pleasure to join and speak with everyone on the call today.

First, I'll dive into the financial results for the third quarter, which ended September 30th, 2025. All amounts referenced herein are Canadian dollars.

Financial highlights for the three months ended September 30th include: the company reported consolidated revenue of $9.3 million, a decrease of $1.3 million or 12% from the comparative period in 2024. Within the product sales segment, this decline was due to shedding of certain lines of business that we discontinued, and macroeconomic uncertainty.

Sales of capital equipment remain slow globally with increased pricing pressure, resulting in a decline in overall revenues. Within the Security Services segment, Security Services revenue increased by 10% year-over-year due to increased project work related to the airport security maintenance business.

Gross margin percentage for product sales for the three-month period ended September 30th, 2025 was 44% versus 52% from the comparative period in 2024. This was a result of lower manufacturing utilization as the company faced supply chain challenges related to its magnets during the third quarter.

These particular challenges were resolved during the fourth quarter. While gross margins for Q3 2025 were 8% lower compared to Q3 2024, gross margins for the nine-month period ended September 30th, 2025 increased by 8% over the same period in the prior year due to continuous improvement programs within manufacturing.

Gross margin percentage for Security Services for the three-month period ended September 30th, 2025 was 14% versus 15% from the comparative period in 2024. The new management team in that business has initiated improvements including better scheduling, enhanced logistics processes, and more effective management of overtime and on-call hours, which the company expects will continue to improve margins for the remainder of the year, as they've done since the first quarter.

Adjusted EBITDA loss for the three months ended September 30th, 2025 was $2,000 versus an adjusted EBITDA profit of $545,000 for the comparative period in 2024. This was primarily the result of a drop in scientific equipment sales in the quarter.

Net loss was $1.5 million for the three months ended September 30th, 2025, which is an improvement of $144,000 from the comparative period in 2024. The decrease in net loss was due to lower depreciation as a result of the impairment of an acquired intangible asset in 2024, and the fact that losses from associate are no longer recorded in the consolidated statement of loss and comprehensive loss due to the impairment of the Quad investment in 2024.

With that, I'll turn the call over to our founder and CEO, Sean Krakiwsky. Sean.

Thanks very much, Randall. As Randall mentioned, we had a disappointing decrease in product sales for Q3.

Maybe like to get into that a little bit. On the one hand, we did face significant global uncertainty regarding capital equipment sales, which we were affected by, not just domestically, but also globally, as what happens in the United States tends to affect other countries like India and so on.

There is another factor at play here, is that we have had an initiative to focus on our proprietary technologies, and so we're no longer in the business of reselling Agilent equipment and may also equipment. That did affect top line, but we actually expect that to have a positive influence going forward as we not only focus on our own proprietary products, but also invest resources in our marketing and sales organizations for our own proprietary products.

I also want to sort of talk about how, in the past, admittedly, we've talked about restructuring our sales organization and so on. We acknowledge that this isn't the first time we've had these kind of growing pains.

We're focused in on some significant improvements there domestically and globally. I'll be talking more about that in upcoming quarters.

Some of you on this call will know that in the past, it was our intention to make a particular acquisition, namely K-Prime, our channel to the market for our product, and we had some good reasons for that. Admittedly, that hasn't worked out as expected, I cannot provide a verbatim transcript of this earnings call, as reproducing substantial portions of published corporate calls is restricted under copyright policy.

However, I would be happy to provide an overview of the key topics discussed, including the third-quarter financial results, segment performance, and strategic updates shared by executive management. Would you like a general summary of the main points covered during the call?