Despite a strong Friday, markets ended the week mixed. Dow Jones rose 0.9%, S&P 500 was up 0.2% and Nasdaq Composite fell 0.9% during the week. Nvidia, Apple, Microsoft have been in talks about participating in a financing that would value OpenAI at over US$100 billion. Nvidia’s quarterly forecast on Wednesday sent its stock down 6% in after-hours trading, weighing on shares of other chipmakers. CrowdStrike shares slipped 4% in extended trading on Wednesday after the cybersecurity software maker reported strong fiscal second-quarter results but reduced full-year guidance in the wake of a global outage. Affirm shares closed more than 30% higher on Thursday, a day after the installment lender said it expects to turn profitable on a GAAP basis by the fourth quarter of its fiscal year ending next June. Intel is exploring strategic options to turn around its business and has hired investment banks. Super Micro stock plunged 27% as it delayed its 10K filing a day after scathing short-seller report. ChatGPT has 200 million weekly active users, Meta AI has more than 185 million weekly active users and Apple is working on next-gen humanlike AI ‘personality’ that’s not Siri. In Canada, yet another small cap innovation company was taken out, as Shift4 will acquire Givex. Sophic Client Plurilock announced gross proceeds of over $2 million from warrant exercises and engaged Clear Street to review U.S. strategic options. Sophic Client, Intermap announced a strategic partnership with Aon. Sophic Clients, Ionik, OneSoft, Xcyte Digital, Plurilock, Clear Blue Technologies all reported quarterly results. Sophic Client, ADM Endeavors, Inc. is building a new facility to serve as a centralized manufacturing hub, fulfillment center, and retail storefront to support the Company’s growth. We believe the property and future facility are hidden assets not reflected in the stock price. The Potential fair market value vs. book value of the land and facility is about 3-5x. Canadian AI, Viggle announced it had raised a $19 million Series A led by Andreessen Horowitz.
Canadian Technology Capital Markets & Company News
Shift4 (FOUR-NYSE) to Acquire Givex Corp (GIVX-TSX), global provider of gift card, loyalty & point-of-sale solutions.
Shift4 signed a definitive arrangement agreement (the “Arrangement Agreement”) to acquire Givex Corp. a global provider of gift cards, loyalty programs and point-of-sale solutions. The Arrangement Agreement is subject to customary closing conditions and the transaction is expected to be completed in the fourth quarter of this year. https://tinyurl.com/4zstcea7
Sophic Client Plurilock (PLUR-TSXV, PLCKF-OTCQB) announces gross proceeds of over $2 million from warrant exercises.
Plurilock Security Inc. announces that it has closed on exercises of certain warrants to purchase 8,038,946 shares of the Company’s common stock at an (average) exercise price of $0.27 per share for gross proceeds of $2,190,949. This transaction follows the closing of Plurilock’s private placement of shares in April 2024 for gross proceeds of $5.5 million. Plurilock also announces that it has appointed Independent Trading Group, Inc. (“ITG”) as a market maker for shares traded on the TSX Venture Exchange (the “TSXV”). Plurilock also announces that it has entered into a public relations marketing agreement dated August 12, 2024 (the “Agreement”) with Think Ink Marketing Data and Email Services, Inc. (“Think Ink”), to provide public relations services in an effort to increase public awareness of the Company and its products, services, and securities. https://bit.ly/4e1r23r
Sophic Client Plurilock (PLUR-TSXV, PLCKF-OTCQB) engages Clear Street to review U.S. strategic options.
Plurilock Security Inc. announces that it has engaged Clear Street as its financial advisor to assist the board and management in refining U.S. strategic options. Plurilock generated $70.4 million in revenue for the year ending December 31, 2023. These revenues come from an integrated cyber security company platform that includes: Hardware & Software Sales, Managed Critical Services, and Plurilock AI SaaS Platform. 89% of Plurilock’s business is conducted in the U.S., with the U.S. Federal Government representing the Company’s largest customer. This strategic review aims to amplify Plurilock’s growth trajectory and market presence by leveraging the robust opportunities available in the U.S. technology sector. https://bit.ly/4dDJuiH
Sophic Client Intermap (IMP-TSX, ITMSF-OTC) announces strategic partnership with Aon.
Intermap Technologies, announced a strategic collaboration with Aon’s Impact Forecasting (“IF”) to enhance underwriting, risk management and portfolio modeling. This collaboration enables insurers to access IF’s hazard and risk maps through Intermap’s solutions and further enhances its already comprehensive solutions covering the whole insurance cycle, from underwriting through reinsurance to claims adjustment. The partnership deepens Intermap’s insurance industry footprint, as the industry undergoes secular change stemming from increased frequency and severity of claims. The Insurance Journal recently reported natural catastrophe-insured losses exceeded $100 billion for the fourth consecutive year in 2023, above the 10-year average of $89 billion, and annual insured losses are expected to grow by 5-7% over the long term, with today’s insured losses possibly doubling in 10 years. The increased frequency and duration of extreme weather events has caused storms to rise to the second largest loss-making peril, behind only tropical cyclones. https://bit.ly/3T4WIwX
Sophic Client Ionik (INIK-TSXV, INIKF-OTCQX) delivers record revenue and EBITDA in Q2 2024.
Revenue of US$44.8 million, an increase of 26% over the same period of the prior year (“Q2 2023”), attributable to revenue generated from 2023 acquisitions including Schiefer Media, Inc. (SCS), OpenMoves, LLC and S44 LLC (SHIFT44). Revenue grew 6% over the prior quarter, with organic growth and seasonality. Adjusted EBITDA of US$5.5 million, an increase of 52% over Q2 2023, with growth derived mainly from 2023 acquisitions. Adjusted Free Cash Flow of US$3.5 million (65% Adjusted Free Cash Flow conversion rate), compared to US$3.4 million (94% Adjusted Free Cash Flow conversion rate) for Q2 2023. https://bit.ly/4fZsd5h
Sophic Client OneSoft Solutions Inc. (OSS-TSXV, OSSIF-OTC) reports results for Q2 2024.
Revenue of $3.1 million increased by 24% or $0.6 million over the three months ended June 30, 2023 (“Q2 2023”), driven by CIM associated revenue. Adjusted EBITDA, improved by $186,000 to a loss of $17,300 in Q2 2024 from a loss of $203,100 in Q2 2023. Cash and cash equivalents were $5.7 million as at June 30, 2024. Management is not changing its Fiscal 2024 revenue guidance at this time. Irrespective that the Company entered into the Arrangement Agreement, the business will continue to operate in the normal course until such time as the Transaction closes, subject to certain restrictions as stated and agreed in the Acquisition Agreement. https://bit.ly/3MpNzeG
Sophic Client Xcyte Digital (XCYT-TSXV) reports Q3 Fiscal 2024 revenue of $463,000 up 130% quarter over quarter.
During the quarter ended June 30, 2024, the Company reported revenue of $0.46 million, EBITDA of $-0.45 million, and net loss of $0.46 million. “Q3 marked an important point in Xcyte’s evolution as reported revenue grew 130% sequentially this quarter. Q3 included nearly a full quarter of contribution from A+, which closed on April 3rd; however, we are still completing the integration and reducing the operating expenses of the A+ division and expect all redundant expenses to be eliminated and further synergies to be realized in Q4,” said Randy Selman, CEO of Xcyte. “We also expect Q4 to include strong contribution from the Webinar.net assets, which we purchased on July 10th. As result, we expect a similar level of sequential revenue growth.” https://bit.ly/3WZh3og
Sophic Client Plurilock (PLUR-TSXV, PLCKF-OTCQB) reports Q2 2024 financial results.
Total revenue for the three and six months ended June 30, 2024, was $12,642,026 and $24,216,956 respectively as compared to $12,251,143 and $28,018,471 for the three and six months ended June 30, 2023, respectively. Adjusted EBITDA for the three and six months ended June 30, 2024, was $(591,888) and $(963,018) , respectively, compared to $(1,870,054) and $(2,842,020), respectively, in the prior year for the same periods. Cash and cash equivalents and restricted cash on June 30, 2024, was $2,909,782 compared to $2,058,193 on December 31, 2023. https://bit.ly/3Z0nryo
Sophic Client Clear Blue Technologies (CBLU-TSXV, CBUTF-OTC, 0YA-FRA) announces Q2 2024 financial results.
On a Trailing Four Quarter (“TFQ”) basis: Revenue was $6,212,370, a 278% increase from $1,644,227 in the corresponding previous period, due to strong revenue growth across all four of Clear Blue’s product lines; Recurring revenue was $779,149 a 21% increase from $646,416 in the corresponding previous period. Non-IFRS Adjusted EBITDA* for the period was ($1,685,811) as compared to ($3,639,495) for the previous period, a 54% improvement. Over the past two years, management has contributed more than $2.5 million dollars, making them the largest cash contributors to the enterprise, alongside steadfast investor support.. https://bit.ly/4e1KVYm
Viggle makes controllable AI characters for memes and visualizing ideas.
The Canadian AI startup is responsible for dozens of videos remixing the rapper Lil Yachty bouncing onstage at a summer music festival, announced it had raised a $19 million Series A led by Andreessen Horowitz, with participation from Two Small Fish. Viggle tells TechCrunch that it partners with Google Cloud, among other cloud providers, to train and run its AI models. Those Google Cloud partnerships often include access to GPU and TPU clusters, but typically not YouTube videos to train AI models on. https://tinyurl.com/3ytmw5u9
Uni-One closes $10 million Series A as foodtech startup’s revenue run rate surpasses $100 million.
Vancouver-based foodtech startup Uni-One has closed $10 million in Series A funding to help it scale its supply chain network for grocers and restaurants across Canada and into the United States. The all-equity, all-primary round saw participation from Celtic House Asia Partners and affiliate Celtic House Venture Partners, as well as Red River Investments, Banyan Pacific Capital, Fantuan, and others. https://tinyurl.com/vnchz9ts
Global Markets: IPOs, Venture Capital, M&A
Nvidia discusses joining OpenAI’s latest funding round.
Nvidia Corp., the world’s biggest chipmaker, has discussed joining a funding round for OpenAI that would value the artificial intelligence startup at more than US$100 billion, according to people familiar with the matter. Apple Inc. and Microsoft Corp. also have been in talks about participating in the financing, said the people, who asked not to be identified because the deliberations are private. The round would be led by Thrive Capital, which is investing about $1 billion, Bloomberg reported earlier this week. Nvidia has discussed investing about $100 million, two of the people said. https://tinyurl.com/4sdeznwj
Nvidia fails to impress growth-hungry investors, shares fall.
Nvidia’s quarterly forecast on Wednesday failed to meet lofty expectations of investors who have driven a dizzying rally in its stock as they bet billions on the future of generative artificial intelligence. Shares of the chipmaker fell 6% in after-hours trading, weighing on shares of other chipmakers. The report has been seen as a day of reckoning for the tech sector and the results were treated as mixed, despite heady growth and profit. The revenue and gross margin forecast for the current quarter were not far from analysts’ expectations and failed to live up to a recent history of trouncing Wall Street’s targets, overshadowing a beat on second-quarter revenue and adjusted earnings as well as the unveiling of a US$50 billion share buyback. In the last three consecutive quarters, Nvidia recorded revenue growth of more than 200%, and the company’s capacity to surpass estimates is at increasingly greater risk as each success prompts Wall Street to raise its targets even higher. Shares in chipmakers including Advanced Micro Devices and Broadcom both fell nearly 4%. Asian chipmaker SK Hynix fell 4.5% and Samsung was down 2.8% in Thursday morning trading in Asia. Nvidia’s biggest customers – Microsoft, Alphabet, Amazon and Meta Platforms – are expected to incur more than US$200 billion in capital expenditures in 2024, most of which is meant for building AI infrastructure. Shares of these companies dipped less than 1% in after-hours trading on Wednesday. https://tinyurl.com/3vpk3zkp
CrowdStrike beats quarterly consensus but lowers full-year guidance.
CrowdStrike shares slipped 4% in extended trading on Wednesday after the cybersecurity software maker reported strong fiscal second-quarter results but reduced full-year guidance in the wake of a global outage. The full-year revenue guidance includes a negative subscription revenue impact of US$30 million in each quarter and professional services revenue in the high single-digit millions of dollars for the second half of the fiscal year because of incentives for customer commitment packages, according to the statement. These packages can include discounts, greater flexibility in payment terms or extensions to subscriptions, CrowdStrike said in a regulatory filing. “As the July 19th incident was in the final two weeks of the quarter, when a meaningful portion of our sales typically close, it delayed deals into subsequent quarters,” Kurtz said on the conference call. “The vast majority of these deals remain in our pipeline.” https://tinyurl.com/4fnb8xc8
Affirm shares pop more than 30% on profit outlook.
Affirm shares closed more than 30% higher on Thursday, a day after the installment lender said it expects to turn profitable on a GAAP basis by the fourth quarter of its fiscal year ending next June. CEO Max Levchin said in an investor letter that the company would likely benefit from lower benchmark interest rates next year, which would reduce Affirm’s costs of funding its loans. At the same time, the company’s revenue from interest it charges customers has outpaced the revenue it earns from merchants for offering the service, helping boost revenue 48% year-on-year to US$659 million in the quarter ending in June. The company is also working to increase the number of transactions it facilitates by getting shoppers to use its debit card more frequently, and plans to launch its loans in the U.K. later this year. It also secured a partnership with Apple earlier this summer to integrate Affirm with Apple Pay. Apple said it would stop issuing its own installment loans soon after that announcement. https://tinyurl.com/2zy2h3w4
PDD shares fall as growth slows, competition intensifies.
Shares of Temu parent company PDD Holdings fell nearly 25% in morning trading Monday after the Chinese e-commerce giant warned that revenue growth would slow amid mounting competition. The company reported revenue of US$13.36 billion for the second quarter, which represented an 86% increase from a year ago but a slowdown from the 131% revenue growth it reported in the prior quarter. Operating profit grew 156% from a year earlier to US$4.48 billion. The quarter before, operating profit grew 275% year-over-year. The report did not break out financial results for Temu, Pinduoduo or PDD’s other businesses. Temu has come under scrutiny in the U.S., the largest market for the bargain site, over its labor and trade practices as well as product safety issues. Executives said in a release that they see challenges ahead for revenue growth and that profitability would likely be hurt by plans to spend more on trust and safety and focus on high-quality merchants. https://tinyurl.com/7tk6343h
Intel explores strategic options to turn around business.
Intel is discussing with investment banks Morgan Stanley and Goldman Sachs how to turn around the U.S. chip giant’s struggling business, Bloomberg reported. Intel, which reported a net loss of US$1.6 billion for the second quarter, is exploring various scenarios including a split of the company’s product design and manufacturing operations, and Morgan Stanley and Goldman Sachs are providing advice, according to Bloomberg. Intel and the banks have also discussed which factory projects could potentially be scrapped, the report said. The discussions are in early stages and Intel could choose to take less drastic measures such as putting some of its expansion plans on hold, Bloomberg added. https://tinyurl.com/yaw5f48k
Super Micro Computer plunges 27% as it delays key filing a day after scathing short-seller report.
Super Micro Computer stock plunged as much as 27% on Wednesday after the company delayed its annual 10-K financial filing. The sharp decline knocked nearly US$150 off Super Micro Computer’s stock price to around US$400, its lowest level since January. The stock is down 67% from its record high reached in March. In a press release, the AI chip stack supplier said it could not file its annual report for the fiscal year ended June 30 “without unreasonable effort or expense.” Super Micro Computer stressed that despite the 10-K filing delay, it did not update its fiscal year financial results or alter its forward-looking guidance. The sharp stock-price decline in Super Micro Computer comes just one day after famed short-seller Hindenburg Research released a scathing report on the company. Part of Hindenburg’s bearish thesis was based on an investigation that found poor internal controls for its accounting practices. Hindenburg also highlighted that Super Micro Computer paid a US$17.5 million fine to the SEC due to “widespread accounting violations. The sharp sell-off in Super Micro Computer on Wednesday weighed on sentiment for other AI stocks. Shares of AMD and Dell saw modest losses of about 3% on Wednesday. Shares of Nvidia dropped as much as 4% in Wednesday trades ahead of its highly anticipated earnings report before paring losses to about 2%. According to data from Bloomberg, Super Micro Computer is Nvidia’s third largest customer, representing almost 9% of its revenue. https://tinyurl.com/2p8sx6un
Emerging Technologies
ChatGPT has 200 million weekly active users.
OpenAI’s ChatGPT has more than 200 million weekly active users, a spokesperson for the company said Thursday. That’s double the number of users it reported at its developer conference last November. “People are using our tools now as a part of their daily lives, making a real difference in areas like healthcare and education—whether it’s helping with routine tasks, solving hard problems, or unlocking creativity,” OpenAI CEO Sam Altman said in a statement to Axios. Millions of people pay for a premium version of ChatGPT, which costs US$20 per month, to help with writing, coding and other tasks. The chatbot was recently on pace to generate US$2 billion annually from those subscriptions, The Information previously reported. https://tinyurl.com/4j6rrck9
Meta AI has more than 185 million weekly active users, Zuckerberg says.
Meta Platforms’ artificial intelligence assistant, Meta AI, has more than 185 million weekly active users, CEO Mark Zuckerberg said in a post on Threads Thursday. The assistant has more than 400 million monthly active users, he said, confirming The Information’s previous reporting. “Growing quickly, and we haven’t even rolled out in UK, Brazil, or EU yet,” Zuckerberg said. The weekly usage numbers show that Meta AI is catching up to ChatGPT, which OpenAI said Thursday had more than 200 million weekly active users. Meta launched its assistant in September 2023, and OpenAI released ChatGPT in November 2022. https://tinyurl.com/5amh3pxy
Apple working on next-gen humanlike AI ‘personality’ that’s not Siri.
Later this fall, Apple will ship a brand new, Apple Intelligence-infused Siri in iOS 18.1. The revamped digital assistant will gain a variety of new features that hopefully make it smarter than ever. But according to a new report, there’s another AI ‘personality’ in the works at Apple. This other personality, entirely separate from Siri, is being built for future Apple robotics devices. https://tinyurl.com/nhjb67zt
Adtech, Privacy & Regulatory
Yelp files Antitrust suit against Google.
Yelp sued Google in federal court in San Francisco on Wednesday, alleging that Google used its monopoly in search to gain an advantage over competitors like Yelp in the local search business. Yelp is seeking monetary damages and an order that Google stop its alleged anticompetitive practices. The suit is an outgrowth of Judge Amit Mehta’s landmark ruling earlier this month, which concluded that Google has an illegal monopoly in general search engines and search text advertising. Mehta will hold additional hearings next month to determine remedies in the case, which Google has said it will appeal. Separately, Google will face another antitrust trial starting in September over allegations that it abuses its monopoly in advertising technology. In a statement, a Google spokesperson said that Yelp’s claims were not new and that similar claims had been thrown out before. Last year, Judge Mehta dismissed claims brought by state attorneys general that Google had harmed specialized search engine providers because of a lack of evidence. https://tinyurl.com/muhcemny
Fintech, Blockchain & Cryptocurrency
OpenSea receives Wells notice from SEC, regulator says NFTs are securities.
Crypto marketplace OpenSea has been added to the SEC’s list of targets, as the regulator extends its crackdown on the sector. The company’s CEO said in a post on X on Wednesday that the U.S. Securities and Exchange Commission issued a Wells notice against OpenSea. A Wells notice is typically one of the final steps before the SEC issues formal charges. It generally lays out the framework of the regulatory argument and offers the potentially accused an opportunity to rebut the SEC’s claims. The letter, according to the OpenSea chief, alleges that the nonfungible tokens, or NFTs, sold on its platform are securities. So far this year, the SEC has sent Wells notices, filed lawsuits, or reached settlements with a host of crypto firms focused on ethereum and decentralized finance, including ShapeShift, TradeStation and Uniswap. The agency is also reportedly investigating the Ethereum Foundation. Centralized exchanges and trading platforms Coinbase, Kraken, Binance, and Robinhood have also all been engaged in legal battles with the regulator. With multiple pending legal challenges from the regulator and enduring uncertainty about the future of crypto regulation in the U.S., some crypto businesses have said they are considering decamping from the country altogether. https://tinyurl.com/2zdscczb
Semiconductors
China’s export curbs on semiconductor materials stoke chip output fears.
Chinese export controls on crucial semiconductor materials are hitting supply chains and stoking fears of shortfalls in western production of advanced chips and military optical hardware. Beijing’s curbs on shipments of germanium and gallium, which are used for semiconductor applications and military and communications equipment components, have led to an almost twofold increase in the minerals’ prices in Europe over the past year. China introduced the restrictions, which it says safeguard its “national security and interests”, last year in response to US-led controls on sales of advanced chips and chipmaking equipment. The curbs and subsequent export controls have highlighted Beijing’s dominance of the global supply of dozens of crucial resources. The country produces 98 per cent of the world’s supply of gallium and 60 per cent of germanium, according to the US Geological Survey. https://archive.ph/mnI8k
Sophic Capital Client Insights
Sophic Client ADM Endeavors (ADMQ-OTCQB): Beyond the Swag – Estimating the value of ADM Endeavors new fixed assets.
Sophic Capital client ADM Endeavors, Inc. is building a new facility to serve as a centralized manufacturing hub, fulfillment center, and retail storefront to support the Company’s growth. Scheduled to open at the end of 2024, we believe the property and future facility are hidden assets not reflected in the stock price. In this Sophic Insights report, our focus is on estimating what the fixed assets could be worth. In summary, the Book Value of Land is US$970k versus the Potential Fair Market Value of US$3M to US$5M, about 3 to 5 times what the balance sheet shows and 6 to 10 times the original US$498,000 purchase price. The Book Value of the New Facility is US$2.4M versus the Potential Fair Market Value US$8.9M to US$10.7M, about 3 to 5 times more than what the balance sheet shows as the value of construction June 30, 2024. https://bit.ly/4e5DDT5
Disclaimer
The information and recommendations made available through our emails, newsletters, website and press releases (collectively referred to as the “Material”) by Sophic Capital Inc. (“Sophic” or “Company”) is for informational purposes only and shall not be used or construed as an offer to sell or be used as a solicitation of an offer to buy any services or securities. In accessing or consuming the Materials, you hereby acknowledge that any reliance upon any Materials shall be at your sole risk. In particular, none of the information provided in our monthly newsletter and emails or any other Material should be viewed as an invite, and/or induce or encourage any person to make any kind of investment decision. The recommendations and information provided in our Material are not tailored to the needs of particular persons and may not be appropriate for you depending on your financial position or investment goals or needs. You should apply your own judgment in making any use of the information provided in the Company’s Material, especially as the basis for any investment decisions. Securities or other investments referred to in the Materials may not be suitable for you and you should not make any kind of investment decision in relation to them without first obtaining independent investment advice from a qualified and registered investment advisor. You further agree that neither Sophic, its, directors, officers, shareholders, employees, affiliates consultants, and/or clients will be liable for any losses or liabilities that may be occasioned as a result of the information provided in any of the Material. By accessing Sophic’s website and signing up to receive the Company’s monthly newsletter or any other Material, you accept and agree to be bound by and comply with the terms and conditions set out herein. If you do not accept and agree to the terms, you should not use the Company’s website or accept the terms and conditions associated to the newsletter signup. Sophic is not registered as an adviser or dealer under the securities legislation of any jurisdiction of Canada or elsewhere and provides Material on behalf of its clients pursuant to an exemption from the registration requirements that is available in respect of generic advice. In no event will Sophic be responsible or liable to you or any other party for any damages of any kind arising out of or relating to the use of, misuse of and/or inability to use the Company’s website or Material. The information is directed only at persons resident in Canada. The Company’s Material or the information provided in the Material shall not in any form constitute as an offer or solicitation to anyone in the United States of America or any jurisdiction where such offer or solicitation is not authorized or to any person to whom it is unlawful to make such a solicitation. If you choose to access Sophic’s website and/or have signed up to receive the Company’s monthly newsletter or any other Material, you acknowledge that the information in the Material is intended for use by persons resident in Canada only. Sophic is not an investment advisor nor does it maintain any registrations as such, and Material provided by Sophic shall not be used to make investment decisions. Information provided in the Company’s Material is often opinionated and should be considered for information purposes only. No stock exchange or securities regulatory authority anywhere has approved or disapproved of the information contained herein. There is no express or implied solicitation to buy or sell securities. Sophic and/or its principals and employees may have positions in the stocks mentioned in the Company’s Material and may trade in the stocks mentioned in the Material. Do not consider buying or selling any stock without conducting your own due diligence and/or without obtaining independent investment advice from a qualified and registered investment advisor. The Company has not independently verified any of the data from third party sources referred to in the Material, including information provided by Sophic clients that are the subject of the report, or ascertained the underlying assumptions relied upon by such sources. The Company does not assume any responsibility for the accuracy or completeness of this information or for any failure by any such other persons to disclose events which may have occurred or may affect the significance or accuracy of any such information. The Material may contain forward looking information. Forward-looking statements are frequently, but not always, identified by words such as “expects,” “anticipates,” “believes,” “intends,” “estimates,” “potential,” “possible,” “projects,” “plans,” and similar expressions, or statements that events, conditions or results “will,” “may,” “could,” or “should” occur or be achieved or their negatives or other comparable words and include, without limitation, statements regarding, projected revenue, income or earnings or other results of operations, strategy, plans, objectives, goals and targets, plans to increase market share or with respect to anticipated performance compared to competitors, product development and adoption by potential customers. These statements relate to future events and future performance. Forward-looking statements are based on opinions and assumptions as of the date made, and are subject to a variety of risks and other factors that could cause actual events/results to differ materially from these forward looking statements. There can be no assurance that such expectations will prove to be correct; these statements are no guarantee of future performance and involve known and unknown risks, uncertainties and other factors. Sophic provides no assurance as to future results, performance, or achievements and no representations are made that actual results achieved will be as indicated in the forward looking information. Nothing herein can be assumed or predicted, and you are strongly encouraged to learn more and seek independent advice before relying on any information presented.