Financial Data and Key Metrics Changes - For the fiscal year 2025, the company reported revenue of CAD 41.5 million, a decrease of CAD 16.9 million compared to the previous year [5][16] - The gross profit decreased by only CAD 1.2 million despite the significant drop in revenue, indicating improved gross margin which increased by 5% to 25% [5][17] - The net loss for the year was CAD 31.1 million or CAD 0.97 per basic share, compared to a net loss of CAD 3.6 million or CAD 0.13 per basic share in the prior year [19] Business Line Data and Key Metrics Changes - EPC services revenue declined by approximately 57% to CAD 23.3 million due to lower construction activity [16][17] - IPP production generated CAD 9.3 million in high-margin revenue, a significant increase from CAD 0.6 million in the previous year [6][17] - The gross margin for EPC service revenue improved from 18% to 30% year over year [17] Market Data and Key Metrics Changes - The company has projects representing approximately 84 MW of solar and 44 MW-hour of battery storage expected to reach notice to proceed within the next 12 months [4] - The company is actively expanding its footprint in key markets such as Nova Scotia, Ontario, Alberta, and British Columbia [14] Company Strategy and Development Direction - The company is focusing on owning more assets to grow its IPP business, which is expected to provide high-margin, recurring revenue over time [5][24] - The acquisition of the Solar Flow-Through Fund is seen as a strategic move to enhance operational capabilities and generate stable revenue [7][36] - The company is prioritizing development in key U.S. states to qualify for full ITC treatment under the One Big Beautiful Bill Act [12][13] Management's Comments on Operating Environment and Future Outlook - The management noted that the clean and renewable energy market has faced significant challenges, with many companies experiencing a drop in value of over 60% [23] - Despite the challenges, the management expressed confidence in the company's ability to stabilize and grow, citing a 1,500% increase in IPP revenue [24][25] - The management emphasized the importance of a clear strategy for long-term sustainable profitability, even in a difficult market environment [25][26] Other Important Information - The company closed a registered direct offering for CAD 8.5 million, marking its first capital raise since going public [10] - The company has secured project-based financing of up to CAD 100 million for a portfolio of solar projects in the U.S. [8][32] Q&A Session Summary Question: Major increase in IPP revenue year over year and its impact on margins - Management highlighted that the IPP revenue is expected to continue growing, with a focus on retaining projects for long-term profitability [28][30] Question: Integration and synergies following the acquisition of Solar Flow-Through Fund - Management explained that the acquisition is strategic for long-term profitability, with a focus on enhancing operational capabilities [35][36] Question: Updates on data center expansion and crypto treasury strategy - Management discussed plans to become a power partner for data centers and the ongoing development of a crypto strategy without compromising core business [40][44]

Core Viewpoint - "Tariff risk sharing" is becoming a new norm in power purchase agreements (PPAs) for energy storage systems in the U.S. due to uncertainties surrounding import tariffs and investment tax credits (ITC) [3][7]. Group 1: Recent Agreements - Ava Community Energy signed two PPAs with EDP Renewables, including a 200MW solar and 184MW/736MWh storage project, which is the largest agreement, located in Fresno County, California [4]. - The second agreement involves a 70MW/280MWh storage capacity addition to the Scarlett solar project, which is situated near the Sonrisa project [6]. Group 2: Market Dynamics - The uncertainty regarding the potential reinstatement of import tariffs between the U.S. and China adds complexity to the energy investment landscape [5]. - The negotiation dynamics of PPAs are shifting, with developers unwilling to bear the price risks associated with tariffs and tax credits alone, leading to the inclusion of price adjustment mechanisms in contracts [7][8]. Group 3: ITC Incentives and Challenges - EDP is expected to continue benefiting from ITC incentives under the Inflation Reduction Act (IRA), with the storage ITC program following a gradual phase-out path set by the Biden administration [9]. - New legislative provisions regarding "foreign entities" may restrict projects using materials from Chinese companies from qualifying for ITC, presenting additional challenges for developers [10].