Greetings. Welcome to Intellinetics First Quarter 2026 Earnings Call. At this time, all participants are in a listen-only mode. Should you need assistance during the conference, please press the star key followed by zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Joe Spain, Chief Financial Officer. Thank you. You may begin.

Thank you. Good afternoon, everyone. I am pleased to welcome you to the IntelliNetx 2026 first quarter conference call. Before we begin, I would like to remind listeners that during this conference call, comments made by management may include forward-looking statements regarding IntelliNetx, Inc. that are not historical facts. These forward-looking statements are based on the current expectations and beliefs of management, and they are subject to risks and uncertainties that could cause such statements to differ materially from actual future events or results, until MS Inc. undertakes no duty to update any forward-looking statements. For more information about factors that may cause actual results to differ materially from forward-looking statements, please refer to the press release issued today, as well as risks and uncertainties included in this section under the caption, Risk, Factors, and the Management's Discussion and Analysis of Financial Condition and results of operations in IntelliNATIC's annual report on Form 10-K or the quarterly report on Form 10-Q filed today. Also, please note that on the call today, management will discuss the non-GAAP financial measure adjusted EBITDA. Non-GAAP financial measures are not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP and may be different from non-GAAP financial measures presented by other companies. A reconciliation between GAAP and non-GAAP measures can be found in the press release issued today. With all that said, I would now like to turn the call over to Allison Forsyth and Telenetics President and CEO. Allison, the call is yours.

Thanks, Joe. Good afternoon, everyone, and thank you for joining us. I am now approximately 90 days into the role as CEO of Intellinetics, and I feel even more confident today in our ability to grow our SaaS business. Our products deliver meaningful value to customers, are highly sticky within customer workflows, and address attractive market opportunities. Based on what I have seen in my first 90 days, I believe we can deliver double-digit, year-over-year SaaS growth in 2026 over 2025. Having joined Intellinetics in mid-February, my initial focus has been on evaluating the business, meeting with employees, customers, and partners, and assessing our operational and go-to-market priorities. While first quarter results reflect variability in professional services revenue and margins, my early assessment confirms the conclusions reached during the extensive diligence process completed before I accepted this role. Entedal and NetX has a differentiated technology platform, longstanding customer relationships, and significant opportunities to expand our SaaS and software business in targeted vertical markets. At the same time, it has become increasingly clear that there are meaningful opportunities to improve execution, operational consistency, predictability, and overall go-to-market effectiveness across the organization. We are moving quickly to strengthen alignment, improve our operating discipline, and better position the business for scalable long-term growth. Looking ahead, our priorities are clear. Accelerating our SaaS growth, improving execution consistency and predictability, and aligning resources around our highest priority growth opportunities. With that, I'll turn it over to Joe to walk through the financials in more detail.

Thanks, Allison. I will now review our financial results for the first quarter of 2026 in a bit more detail. Revenue. Total revenue for the quarter decreased 8% to $3.9 million as compared to $4.2 million for the same period last year. The following are the material components of our revenue as presented on our statements of operations. DAS revenue remains stable year-over-year at approximately $1.5 million. While growth moderated during the quarter, recurring software revenue continues to represent an important and growing component of our overall business mix. Software maintenance services were down, as expected, decreasing $39,000 or 11.6% from 2025. As a reminder, these maintenance revenues are from support agreements with long-time customers continuing on our legacy premise solution. Professional services revenue decreased 14.3% to $1.9 million for the quarter from $2.2 million for the same period last year. As a percentage of total revenue, professional services revenue was 47% of total revenue for the quarter compared to 51% last year. As mentioned on our call at the end of March, this revenue line has not yet recovered to a level we expected following the June 2025 renewal of our largest customer's contract. Consolidated gross margin percent decreased 307 basis points to 63.5% for Q1 this year compared to 66.6% last year. The decrease was driven by lower professional services volume and project mix. Importantly, our software margins in both staff and maintenance remained solid. Operating expenses increased 4.4% to $3.7 million for Q126 compared to $3.5 million for Q25. The increase was primarily driven by CEO transition-related costs during the quarter, totaling $430,000, including share-based compensation. These one-time costs were partially offset by other lower administrative and sales and marketing expenses. Net loss for Q1 was $1.2 million compared to net loss of $0.7 million for the same period last year. The primary drivers were the one-time CEO transition costs of $430,000, as well as reduced professional services revenue from our document services segment. Loss per share was $0.27 per share compared to loss per share of $0.17 last year. Our adjusted EBITDA loss for the quarter was $288,000 compared to adjusted EBITDA profit of $77,000 in the same period last year, reflecting the same drivers just mentioned. Next, I'll turn to a brief overview of our balance sheet. At March 31, 26, we had cash of $2.1 million and account receivable net of $1.2 million. Our total assets were $16.5 million, including $8.6 million in intangible assets and goodwill as part of acquisitions made since 2020. Total liabilities were $5.8 million, including $2.9 million in deferred revenues, reflecting signed SAS and maintenance contracts. We had no debt as of March 31, 2026, nor any borrowings to date. I want to wrap up with a brief financial outlook based on our current plans and assumptions and subject to risks and uncertainties we described in our filings and this call. Management remains focused on accelerating SAS growth and currently expects double-digit year-over-year SAS growth for fiscal 2026. And now back to Allison for some final remarks.

Thanks, Joe. Before we close, I want to leave you with a few final thoughts. As iterated before, my early assessment reinforces that Intellinetics has strong foundational assets, differentiated technology, attractive vertical market opportunities, and meaningful long-term SaaS growth potential. At the same time, we see clear opportunities to improve execution, operational consistency, and our overall go-to-market effectiveness across the organization. Our focus now is straightforward, improving execution, strengthening our operational discipline, accelerating fast growth, and positioning the business for more scalable and predictable long-term performance. We are moving with urgency, and I look forward to updating investors on our progress in the quarters ahead. Bailey, I will now turn the call back over

to you. Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. Please disconnect your lines and have a wonderful day.