Flow Capital Corp. (FW) Earnings Call Transcript & Summary

[Audio Gap] We've put forward a debt term sheet for one reason or another didn't do the transaction, yet the underlying equity of that company has gone up 7x. So we just feel that, that's an excellent opportunity for us to add additional value to our stakeholders. Again, it's very, very modest. But we do now have over 40 holdings in aggregate. Most of those holdings -- the vast majority are tied to either loans or warrants and other equity like upside, often we call exit fees associated with our primary business, which is making senior secured loans to high-growth companies. But we also have some equity positions in there now in both public and private companies. And as I said, that now numbers over 40 aggregate holdings. So it's increasingly helping us to diversify the portfolio. . I want to mention a few other activities and events that happened during the quarter. One, you'll probably recognize Matthew Gan as our new CFO. We did Michael Denny, our prior CFO, is retired. Michael is an internal -- Matt is an internal promotion. Matt joined us 5 years ago. He then took over our credit function and most recently, he's been promoted to take over the CFO function. I welcome Matt to the team. And I look forward to high growth -- him helping us grow the company -- continue to grow the company over the coming years. We also moved to the CFE from the TSX Venture. We did have a few clients and were calling us as it's why, and it's quite an easy story. From our perspective, it's a better exchange. It's more efficient, it's more cost efficient in terms of fees and fees that they might charge on future raises. It's -- it really has no impact on trading, given the way trades happen in today's across multiple exchanges and with the technology available and it increased our availability for U.S. investors. So from our perspective, there was really no reason to stay on the TSX Venture, and it's been, as far as we can see, a very smooth transition to the Canadian Securities Exchange. I also want to mention -- I don't always talk about this, but it's worth mentioning that over the last even years, Flow Capital has been an aggressive buyer of our own stock. In the year-to-date, we've acquired about 161,000 shares acquired and retired. But over the last 7 years, we've acquired and retired over 17 million shares at a cost of just under $7 million and a price of $0.39 per share. We feel strongly that, that is an excellent return of capital and use of our funds for our stakeholders. It's also worth mentioning on the AI front, these are very much internal developments, but we continue to invest in development of AI tools. It's actually providing us excellent leverage and insight into our business and our opportunity. We have -- I'll just mention some of them don't go into much detail, but we have Florence, which is our AI Chief Marketing Officer. We have -- are in the process of building an AI SDR BDR or business outreach tool. We have built a competitive deal analysis tool, which helps us analyze transactions in our industry, who's doing what, what we've seen, what we haven't seen have a deal scoring tool, which is providing excellent insight into accelerating our due diligence on transactions that we do. and a fair number of fairly incredible dashboards that provide us insight and metrics. And I've probably mentioned this before, is that we strongly believe in our investee companies, and we try to live by the same mantra, which is you cannot manage what you do not measure. And these dashboards are helping us -- helping provide us with additional insights into our own business. And it's probably worth mentioning that although not AI many, many quarters ago, Matt, spearheaded the rollout of Chronograph, which is the tool that we used to manage our portfolio. And all of these tools are providing us excellent insight, and we're going to continue to invest in these tools over time. I think with that, I'm going to pause our comments -- official comments and open it up for questions.

[Operator Instructions] There are no questions at this time. I will now pass the call back to Mr. Baluta.

Thank you very much, so well. In summary, thank you, everybody, for attending the call. It was another decent quarter. We're very encouraged by the activity that we see in our pipeline. Our portfolio remains healthy. Our internal efficiency continues to improve. And I look forward to speaking to you in 3 months. Thank you very much.

Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.