Sygnus Credit Investments Limited (SCIJMD) Q2 FY2026 Earnings Call Transcript & Summary

Now without further ado, I'd like to welcome our presenter for today, Mr. Jason Morrison, Co-Founder, Executive Vice President and Chief Investment Officer at Sygnus Capital, who will be guiding us through the presentation this morning. Over to you, Jason.

Thanks, Dani. Good morning, everyone. And just one correction. My name is not Morrison, Jason Morris don't spoil my good nice name. [indiscernible] So good morning, everyone. Thanks for joining us. Just want to give you some inner workings of SCI's Q2 and 6 months financial results. So as usual, we start by giving you the backdrop behind the financial results. So the dashboard for Q2/ 6 months, 6 main items that we want to highlight a little bit different from perhaps the last several quarters, but we would have been hinting at this AGM for those who are here around the Puerto Rico business. So to start off, I want to say that the transformation of Acrecent is ongoing. They would have generated total investment income for the Q2 of USD 3.31 million, up 62.5% and that would have been driven by an expansion of the private credit business. If you recall, for those who have been who are frequent new, Acrecent is a Puerto Rico private credit investment company that SCI would have acquired majority shareholders in. And it's operating in $100 billion economy in Puerto Rico. And so one of the reasons why this acquisition was made was to, a, diversify SCI's revenue stream, but b, also to get substantial growth from what we saw at that time would have been a very fertile economy for private credit. And so far, it is turning out that way. So total investment income was up 62.5% for the quarter. And that was a component of that is net interest income and net interest income for the quarter was actually up 54.5% to 2.399. So the business is effectively firing on all cylinders, so to speak. I think also that during the 6 months period and Acrecent have had substantial deployment of capital, which would not have been captured in the financial results as yet. Because obviously, if I deploy some money today, then it's going to take roughly a full quarter for it to get -- start seeing the full benefit of that deployment. So some of the close transactions that would have been deployed at the back end in December, we will see those results in upcoming period. So that translated into a 22.6% growth in net profit for the quarter, the 1.82 million for Acrecent and that's a new record as well. So the total investment includes a new record and the net profit for the quarter is a new record. And in terms of SCI's investment in Acrecent, we look at the return since the reorganization that would have taken place on July 1, 2023, that given SCI positive 21.5% return on invested capital, which is a phenomenal rate of growth for our credit business. So that business is doing very well. And as we would have said, I think the last 2 quarters, but certainly last quarter, we would have been hinted at the fact that Acrecent would have been going through the process of finalizing its dividend payment policy and then start making dividend payments back to SCI. And this is how you know whether or not the business is really doing what you're saying, right, because cash does. And so for the first time since SCI would have done the acquisition in November 2025, Acrecent would have paid SCI $1.12 million in dividends. And this initial dividend payment will be done on an ongoing basis on a semiannual frequency. So we expect -- can expect every 6 months for Acrecent to start making depending on the net profit that generate, obviously, dividends to all shareholders, including SCI would have received 95.8% of the total dividend that was paid. So that's a fantastic news for SCI in terms of the return that SCI generated and the cash that SCI is getting back from that investment. Fifth thing, I want to highlight is that SCI itself would have had some temporary dislocation of net interest income, and I'll go through this in further slides. But effectively dislocation of about USD 1.1 million temporary dislocation for the 6-month period. Most of this occurred in the last quarter, primarily stemming from later recognition of interest income for private credit investment portfolio company whose investment we will be exiting in maybe the next 3 to 6 months' time and which we have to recognize the interest income has been kind of deferred and that amounted to about $700,000. And then the other -- the remaining amount of about $150,000 to $200,000 for the quarter, $300,000 to $400,000 for the 6-month period has to do with the fact that SCI would have exited successfully USD 19.1 million in Q1. And as you know, how private credit works, you have to redeploy the capital. So you have to redeploy all of the money in a very short time frame is going to it depends on the time at which you redeploy the money for the benefits of the deployment. So we are about -- I would say that we have kind of redeployed all that money now, right? We have deployed about $11 million in the second quarter and $7 million subsequent to the end of quarter. But obviously, if we get repaid cash and holding cash, it means that on the asset side of the balance sheet where we were earning maybe 15%, 16% thereabouts, you are now earning cash rates until all the money has been redeployed. And then on top of that, we need to grow by deploying in more capital to grow the balance sheet. So that's a temporary dislocation we expect to correct itself in -- and then finally, of course, we didn't take any new charge-offs. We didn't realize any new losses during the quarter for the 6-month period. However, as you see further on in the presentation, we actually got back some money from the one default asset that we have on the balance sheet. We finally we got about $0.52 as an initial payment for $1 million investment that we had that was in default. We expect that based on the final payment that we should get as well as from other that we have that we should be made into that into the financial performance of SCI. Total investment income was down 23.2% to $2.8 million versus $3.65 million for the same period last year. And the reason for the dropoff were twofold. I spoke about the net interest income temporary dislocation. So net interest income, right, for the quarter was down 250 versus 1.5 last year. However, that was really driven by 2 temporary factors, which I highlighted on the previous slide, which was $700,000 in deferred interest recognition related to the investment that I spoke about that we exit in another 3 to 6 months and then between $150,000 to $200,000 due to timing differences from reinvesting the $19.5 million of exits. So on the one hand, we did a very good job to get back $19.5 million from our investments during the quarter, very good. It shows that we're getting back money not just getting back money. But then because the volume was so large, I think single largest dollar value of investment existing in a single quarter in SCI's history. So obviously, timing difference between getting cash and cash going back into income. So that was the first part that affected total investment income, which was net interest income. And then the second part is the dividend that we spoke about $1.12 million dividend that Puerto Rico would have paid as a dividend the accounting treatment because Puerto Rico credit fund investment income is a revenue line item in SCI's financial statements and as everyone on the call should know, I join you, Acrecent is not totally consolidated up to SCR, right? So we have to do a valuation of the net profit that we get from the Acrecent makes each quarter. And therefore, once you get a dividend, that dividend is going to act as an offset against the equity that you own in the business. So effectively, the Puerto Rico credit fund investment income, the value that flows through SCI income statement is exactly short by the amount of dividend that was allocated to SCI. So the dividend distribution of $1.12 million reduced the income -- the ARC investment income flowing through SCI's income statement. And obviously, in 2024, there was no dividend, right? So we have for the first time a quarter in which we have an offset to TRCF when we didn't have any in the same period last year. Now every time that Acrecent pays SCI dividend, this issue will occur, right? But it will normalize because going forward, every time that Acrecent pays SCI dividend, dividend is going to in and around ballpark. It's obviously expected to increase over time as the company can make more profit. But the point I want to make is that this will normalize because we'll be comparing periods, similar periods where we have an offset. And so this will kind of come out in the, so to speak. It won't have a material impact on the financial results to start comparing periods. So first is happening obviously $1.2 million offset in this quarter versus not having any similar period last year is a big difference, right? So if we take that dividend offset of $1.12 million and then $1 million from the net interest income temporary deferment and timing difference, you're looking at $1.95 million to for the December quarter in terms of effect and total investment income. So in other words, total investment income would have been closer to $4.8 million. So this has a domino effect on all of the financial results for the quarter. So net investment income down 50% to $1.29 million because of all of what I just said. And so would have been net profit as well, a loss of [indiscernible] profit of [indiscernible] last year. And if you recall last year, I think during this earnings call, what I would have said then was the profit last year have jumped up substantially. And one of the reasons why that would have happened was because there was a huge fair value markup because of I think U.S. elections and outcome. And I would say I had said at that time that we should take the fair value gain the normal portfolio of credit investment that because this is a very volatile number that can go up and down to that. So this time, what we are saying is the net profit figure is abnormally lower than it would have been because of the 2 issues that I highlighted. But both issues we expect to normalize in Q3 heading into Q4. So as a result of our adjusted earnings per share was a negative USD 0.09 versus positive $0.04. Dividends were paid during the quarter and dividends paid were USD 0.01 or USD 0.17, which amounted to USD 1 million versus USD 0.02 or USD 0.28, which was $1.6 million for the same period last year. And one of the reasons why we would have paid a lower dividend. If you recall, we would have during the financial year-end results would have stated that we had a portfolio company that was going through a restructuring of its payment terms. And that restructuring was really finalized. And so out of an of caution, we decided to kind of pay a lower dividend based on just what we viewed as uncertain, so to speak, right? And fast forward subsequent to that, Hurricane Melissa would have occurred pretty much right after that, right? So well, Melissa occurred at the end of October and then you would have seen the effect of that in November. So as a turn the decision that we made, which was related to a different part of turnover to be quite prudent given the outcome that we have from Melissa and the effect that marginally on the portfolio. Just want to highlight something here, but I already spoke about Acrecent's net profit growth and the fact that it generated net profit and therefore, from a value perspective, the value of Acrecent should have been much higher flowing through the income statement, but it was because of the dividend. And I'll get into Acrecent financial results a little bit later. So moving to the 6 months. For the 6 months, total investment income was down 7.9% to $8.05 million versus $8.04 million for the similar period last year. Again, the same effect of what happened during the quarter would have also happened for the 6 months, right? But the 6 months results would have kind of held up better than the quarterly results. Why? Because the first quarter and 6 months results was actually a record quarter, if you recall, I think we made point-something million record USD 3 million, right? So for the quarter, interestingly, net interest income was actually a record. So for the 6-month period, despite the $1 million dislocation that we had in the last quarter net interest income for the 6-month period was still up 14.1% or record USD 4.7 million versus USD 4.1 million last year. What you have to take is record net interest income in the context because we have record net interest income despite the fact that we have a dislocation of between USD 1 million and USD 1 million in net interest income. So net interest income would have been substantially higher for the 6-month period were it not for the dislocation that I spoke about in Q2. And of course, the dividend offset since it happened in Q2, it would also affect the 6-month results. So total investment income was impacted by those 2 factors. Net investment income was $5.3 million, down 17.5% versus $6.42 million, and this is despite the $2.1 million, $2.2 million dislocation. Net profit $2.5 million, down 4.3% versus $5.13 million last year. Earnings per share, $0.41 versus $0.88 and dividend per share spoke about that. For the 6-month period, actually delivered another record profit of $3.3 million, which is up 7.7% and that was driven by a 39.9% growth in total investment income of $5.83 million. So that business is doing very well, growing very strongly and justified the reason why we did the acquisition and why from time to time, we will see the increase of our stake in the business, while we had phenomenal team being led by James and Rahul. Now just to highlight on this slide, some operational results. I won't go through everything here. It's full of numbers. I just want to highlight. So just look at the that circle, right? So you can see the net interest income that I'm speaking about $1.52 million versus $1.8 million. And you will note that the interest income line, right, for the quarter for Q2, 4.975 versus 5.148. So what I'm saying is that if we didn't have this dislocation would have had a higher interest income and therefore, a substantially higher net interest income and then the quarter credit investment income, we 1.168 versus 1.759 for the quarter and similarly 3.078 versus 4.43. And what I'm saying is that those 2 figures, as you see on the quarter when that comes up, would have been $1.12 million higher because the dividend as an offset against effective that line item. And then if you go down further, maybe I can talk about fair value. So fair value would have been reflecting 2 things. One, the normal movement, market interest rate movements, which went down and then went up depending on how the economic scenario is playing out. Obviously, we have hurricane to deal with for the Jamaican part of the portfolio but also in the U.S. being 4x up the rates being much, much, much lower faster is kind of [indiscernible] right, because the U.S. economy is doing fairly decent in terms of economic growth and therefore, the need to cut rates dramatically is there yet. But I suspect that before that might change. So that's a changing argument all the time. Our expectation is that rates are going to go down in 2026, one way or the other. So that would have impacted as well as the fact that given that we have Melissa we are assessing the performance of portfolio companies that are carried at fair value, then we would have marked down some of the business prospects of some other companies. Obviously, when you have a natural disaster like that, you need to be prudent and revise some and would have also lost business, right? So business that you lose, you can't regain it. Obviously, as through time, the business can recover and then you can always get back the cash flow in later period. So when we see that rebound, then we can obviously these assets can always also rebound, right? But for the time being,[indiscernible] Foreign exchange losses, as you all know, we don't own a foreign exchange business, we simply transact and we borrow mainly in Jamaican dollars and then deploy capital into USD. And the currency has been a bit of appreciation since the hurricane, obviously, because Jamaica has would have had -- well, Jamaica had a record NRR before the hurricane and then subsequent to the hurricane, Jamaica has access to billions of dollars of foreign currency. And therefore, the currency has been appreciating on the back of that somewhat. So obviously, we -- because most of our -- well, we have 99% of our assets are in we have a large liability in the currency depreciate the liabilities that will get affected. So we have been gaining from depreciation currencies appreciating a little bit, you see that being reflected into the income statement. But this is that we don't control it moves up and down. And for the most part, only a part of it is realized a small part that is when we actually convert to deploy. And then impairment allowance, I want to spend some time here. Impairment allowance of 776 versus 361 last year, which is 1.27 for the 6 months versus 400 for the same period last year would have been driven by 2 things. One, the initial -- if you recall in Q1, we had actually said that we would have enhanced our modeling, we switch from -- we switch over to Moody's credit lens, which means that the way how we look at portfolio companies now automated and based on their financial performance and that would have changed some of the rating and some of the portfolio companies, which means that automatically take additional ECL from those rating changes. And then two and more importantly was that we had a number of portfolio companies who we thought fit to restart to restructure, renegotiate and restructure their payment terms. And once we enter in such a negotiation and discussion with the portfolio company then their internal credit rating is going to change. So they move from Stage 1 to Stage 2 based on IFRS accounting standards. And once we do that, then it means that automatically, we have to use our lifetime expected credit loss, which simply means that the amount of expected credit loss that you have to book upfront is bigger than before. And so we would have had 3 out of 4 companies that would have fallen into this bucket of capitalization and therefore, automatically means that we have to provide for additional expected credit loss upfront. And if it turns out that the portfolio companies restructure payment terms work out and they don't run into additional difficulties and we get our [indiscernible] and exit, then ECL that you carry is reversed. And so that's how expected credit loss works. So we want to give you insight on that as to what's driving that. And the third thing, obviously, because as, we would have made an initial assessment of the likely impact on portfolio companies. So for example, portfolio companies in hospitality industry, et cetera, some of them don't have a cash flow have substantially reduced cash flow for a couple of months and may file insurance claims start to get additional capital and then to normalize the business. Obviously, this takes time, right? So all of that and we may need to provide support to portfolio companies in one shape form or the other. And obviously, we have to take additional expect loss charge for those portfolio companies. And I have some more information on that in another slide. So that's what's driving the impairment allowance there. So I just wanted to give you additional insights on the face of the income statement in terms of how we share the information in terms of the results of operations. I next couple of slides catch up. So this slide show you Acrecent's first dividend, so the -- this slide from the ground up. So at the bottom of the slide, we have A International LLC and the net profit for the company was actually USD 4.77 million. I think -- and this is the audited financial statement. I think when we reported this earlier, we had a slightly lower number of maybe 4.3 million or thereabouts, but the final results of $4.77 million. So the result of that dividends declared were 1.18 million because SCI owns 95.58% when you scale all of it through the holding companies, then the net money that SCI would have received is $1.01 million when you take out fees and taxes, right? So this is great, but it shows that getting repatriation of cash from the investment is a good thing. And obviously, this is very positive for shareholders for more than one reason in the future. Next slide is showing you Acrecent Q2 financial results. And as usual, for those who are new, you read the slide from the bottom, don't worry about the information may seem a bit confusing. It's very simple, only focusing on the second column for the current period. The first column is giving you the different holding companies. So Acrecent is at the bottom and is 100% owned by Sygnus Credit Puerto Rico Fund with a holdco that was -- that we used to acquire Acrecent. And then we have another company called Sygnus Credit Investments Puerto Rico Inc. [indiscernible] that is the one that owns the 95.8% that then flows into SCI. So Acrecent made $1.82 million for the Q2 December quarter versus $1.4 million last year. That flows into the holdco at $1.72 million. Obviously, the holdco has small operating expenses in there to keep it floating. But then this figure is no longer consolidated. You have to do a fair market valuation by applying multiples, market multiples based on similar companies that are publicly listed in U.S. and Canadian exchanges and apply a discount to that. And that figure, as you can see, gave you $1.17 million, right? But the real figure that it would have given was $2.29 million. So when you subtract $1.12 from $2.29, it gives you $1.17. And just to give people insight if you want on the last call, 1.82 to 2.29 it depends on the market multiples, right, because effectively, this is basically saying what's the value of the cash flow stream if you were to sell it to somebody else. And obviously, not you will be selling it at what the actual net profit is, right? As you can see last year, $1.48 [ billion ] would have translated into $1.76. -- this value can fluctuate. So in previous quarter the company made $1 million and we registered a loss flow through SCI. So it depends, but things have been normalizing and we have a pretty normalized figure by the coming time. So if you look at the 6-month results, the same way the $3.3 million, right, in net profit would have [indiscernible] and then that became actually $3.08 million flowing through SCI's income statement, which is in the form of credit Puerto Rico investment income, right? But this figure was actually $4.2 million. So when you [indiscernible], and you see last year, it would have been [indiscernible] that company would have delivered in net profit, but that $3.07 million resulted in $4.43 millionof value flow through SCI. So once we get to, say, next year this time, right, we're going to have like-for-like because we're going to have a period where there's an offset and the difference between the offset is going to be that big, right? It's big no because $1 million versus zero is a big. So I'm saying that this will normalize and it's a good thing that's happening. It's just that it affects your financial statements temporarily which will normalize. So speeding through efficiency ratio, we came well within the threshold level, which is the dollar value of revenues that goes to pay operating expenses. We want to keep that below 40%, which is kind of best-in-class threshold for private credit firms, and we're well within that at 34.2% and then management expense ratio. And then we promised you to keep that below 2.85%. We can see that we are well within that at 2.4% on the balance sheet. Shareholders' equity was slightly down, marginally down 1.1% to $74.82 million, still very healthy. If you adjust that for our perpetual pref shares, you're talking about a company with USD 107.6 million effectively equity capital, right? And total assets increased 4.7% to $228.3 million. Now we did a number of things during the last quarter and for the 6-month period, right? So we would have raised $19.2 million in capital during the period, which is a pretty decent from private markets, of course, not publicly and then would have prepaid $7.91 million in notes. So from time to time, we issue notes in the private market, and we would have prepaid some of those notes were maturing, I will pay them out before time. And by paying them ahead of time, what that did is sales and interest expense, right? And of course, investors would have been happy it depends on what they are that we paid them in advance. I think we kind of -- I think we kind of had to prepaid those then would have repaid our credit lines to the tune of $6.29 million. Again, it's important to consistently prove that you have enough cash flow generated from the business to pay out your liabilities. So we repaid $6.29 million in revolving bank credit line. Of course, those revolving bank credit lines are available for us to draw on, which we are in the active drawing on to fund transactions that we have in the pipeline, right? And then the other thing that we did, which would have occurred during Q1, but the effect of it took place in December, which is we had USD 26.9 million of preference shares slated mature slated to mature in December 2025, and we would have negotiated with preference shareholders from the September quarter to extend those preference shares by 3 years at low interest rates, which is a great thing. So [indiscernible] shares would have had some cost savings because we have extended and negotiated better credit terms. So that's a good thing. Balance sheet, every time I have to mention this slide that SCI is a very low levered company. So when I measure debt to total assets that 0.23x, we have a threshold limit of 0.5x that we don't want to ever go above or if we go above it, it should be very temporary. Asset coverage ratio [indiscernible] 3.65x up from 2.5x similar period last year. Why is this important? Basically, it's just saying what's the value of assets that we have on the balance sheet that we can quickly convert to cash to pay off near-term maturing. So the bigger the number, the better it is. And then net debt to equity, we have a limit of 2x and our target is actually 1.25x, right? So ideally, we want to be at 1.25x, which is to utilize debt such that we can optimize the maximum amount of return that we generate for shareholders. And currently, we are at 0.5x, which again means that we have very low leverage. And what this means is that if we go to a very bad economic scenario, then SCI has a lot of flexibility because we can take on a lot more debt or we can take on a lot more financing. It won't overburden us because we are not like level of 5x or 7x 10x, right? We have very, very low leverage, which means that we can take on many, many opportunities to grow. And then nonperforming investments were up 0.4% and we hope to keep that at a lower ratio versus the 5% threshold that we have. Now looking at investment activity, investment in portfolio company is $207 million versus $206 million for the similar period last year. Again, you have figured out why this is reason why this number has obviously because we exited 20 million during the 6-month period with 19.6 coming in one single quarter, right? So once we have redeployed our capital then you will see the value portfolio grow significantly. [indiscernible] investment increased 41 versus 37 [indiscernible] investment commitments during the quarter of $1.8 million and about $7.5 million to $8 million subsequent to the end of the quarter. So as of speaking, we would have redeployed 20 million would have exited yield 14.9. Again, this fell because the assets that would have been high-yielding assets. We expect that as we go through time, this will probably fall a little bit further based on just where we are across Caribbean. Average tenor of 1.3 years versus 1.6. Again, SCI investments even though what we look for is 5-year investments, but based on the type of transaction funding, bridging acquisitions, et cetera, those are going to be short term, relatively short tenure investments. Back on the balance sheet was $7.95 million as at the end of the quarter, December we have $7.2 million in undrawn credit lines. So we had a decent amount of money, which is why I said before, investment in portfolio companies did not really grow, right? But in addition to that, we expect we are in closing. We are after the closing the first of 2 international financing transactions. So we wait [indiscernible] to close and announce the first deal and the second one, which we were waiting an license that we needed to get, and we got that license I think in late January. And so we are moving full speed ahead to execute with our international financing partner, which I speak to in the opening section. So we have $25 million approved deals that we going to various document. So we transact for the cash, we're going to need more cash for sure deployed $41.2 million over the 6-month period, which is phenomenal. Most of that came in the last quarter in the last quarter. So we see the full economic benefit of that will be seen in quarters to come. And I spoke about the portfolio growth and you can see that is chasing down SCI in terms of size of portfolio. So SCI have to fight this curve in terms of which book is larger. Speaking portfolio is an ongoing assessment. So far, we have $2.1 billion that will have high impact from hurricane. These are companies that obviously hit in a bad way, which means that they will have lost revenue, have to claim insurance, have to do refurbishing, rebuild the business or don't have access to workers to come to work, right? And in distribution hospital manufacturing and services industry in terms, including telecommunication. So we are working with portfolio companies we can that they need because ultimately that's what private credit was designed to do, right? So we are working with those portfolio companies. So as a percentage of SCI 1.9% of the overall private credit book, if you include the fact that [indiscernible] portfolio 7.2% [indiscernible] from a risk management perspective, looking at the balance sheet ECL charge, so just for the expected credit loss that we see in the P&L is after the change of the balance sheet ECL. So we are looking at the ECL and how it has changed over time. And you have seen here the ECL on the balance sheet has been increasing and it's going to be increasing reflecting what I said earlier, which was we have a number of portfolio companies that we are working with to restructure their payment terms. And once you determine the change or restructure the payment terms, then you have to reclassify the portfolio company and therefore, you have to take additional upfront expected credit losses. And this will increase the ECL. And then, of course, you also have assessment, which we are updating every month in our monthly meeting where we look at the portfolio companies, look at the reports that we get from the company, discussion that we have with the CFOs, CEOs, MDs, et cetera, and then as appropriate, adjust the ECL to reflect the current environment. And even though obviously, recovering from the hurricane is still a long, long way to go for some of these portfolio companies. So the combination of those things is what is pushing up the balance sheet. In terms of recovery, we received USD 529,10 from an original investment of $1 million or the company we have on the balance sheet. It was 2 before. I mean we only have one. And so this is a good thing carrying value of this is about -- so we have 600 of carrying value, and we expect to get all of that money from a combination of the second settlement that we expect from the as well as the that we have, which far exceed initially which far exceeds the value of our investment. So we expect 100% recovery on this. And as we get more information, we can provide it to you, but we have been saying for a very long time that we expect it to be made hold. So finally, we have gotten that first initial settlement. Hopefully, second settlement comes -- so from an annualized loss rate in terms of how much we have crystallized losses since inception around 370 million of capital deployed, which does not include Puerto Rico, 0.2% annualized loss rate. Puerto Rico's annualized loss rate is actually lower than I think it's 0.3% or something like that. There have been a phenomenon in terms of managing crystallized losses. So speed to the rest of the presentation, allocation by industry. As you can see, SCI has a wide allocation right across multiple industries, right? So I won't spend much time there nothing much has changed from this quarter -- last quarter to this quarter. And in terms of allocation per region, Puerto Rico still is allocation at 39.4% versus Jamaica 24.2%. And this is going to be a risk because Puerto Rico is growing very fast. And so there are economies we have to know that Jamaica is going to play a significant role given the reconstruction effort and rebuild effort that SCI is -- has already been a part of in terms of providing capital to the numerous opportunities that has come our way, some of them for critical infrastructure to rebuild and reconnect the western part of the island. So we're happy to be providing playing our part to help. And final slide, strategy. The first one being with the Puerto Rico business, actually, the Puerto Rico team deployed a record USD 100 million for calendar year 2025, right? And this includes obviously Acrecent because we have more than one company. SCI has invested in 2 of them. But Acrecent is the one that is for the time being. So $100 million deployment in a single 12-month period is a monumental achievement. And that speaks volume to the business that exists in the Puerto Rico market. Of course, we'll be looking to just grow and dominate the market in Puerto Rico but to look elsewhere for expansion opportunities at the appropriate time, right? The business is doing records on every single level, when I look at net interest income, total investment income, net profit, portfolio growth, et cetera. So obviously, the job -- our job is to raise new capital, including foreign business, which also includes SCI putting more money in the business to support ongoing because we're getting 20% return on your equity invested capital that's a fantastic thing to do, right? -- and then look for expansion opportunities, which we are actively doing. And then our first dividend paid is a sizable dividend, 1.12 million. So you can expect that this dividend will only increase over time as the business grows, right, [indiscernible] So this is exceptionally good news, I think, for how the business is going and the quality of the management team. So Puerto Rico, just keeping what we are doing and growing bigger. That's the story. SCI, we have set a core revenue target of $12.5 million, which hasn't been realized yet. But obviously, last year, we hit $15 million, and we expect that this year, we should thereabouts again, right? But $12 million was the threshold and at 8 million half year, obviously, we are on track to beat that target. We have $25 million in approved transactions in addition to the $7 million that we have deployed subsequent to the end of the quarter. And the pipeline obviously has -- I don't think pipeline this moment. Obviously, we have to be very careful in terms of being very deliberate about what we deploy capital in. But fair to say that a huge amount of ROE above 10%. It's in progress. We are at 7% because of dislocation, we expect that things will normalize all things being equal. EPS, we need to grow at 20% per year. At the moment, we are currently feeling we are down 27.7%, right? But what I would say is that perhaps this year's quality of earnings is getting better and better, especially with what's happening with Puerto Rico. So we hope to turn it. Dividends need to be above 5%. I think we are below that currently because of the 1 million that we paid in dividends. By the way, the Board of Directors will need, I think remember, we need shortly dividend based on the 10 million I spoke about closing first financing and we're looking at others and then business partners receive the license and we're executing with that internal partner. Third portfolio risk, I kind of spoke about this earlier, but we don't want to the portfolio companies, we have to restructure payment terms with them, monitor them and manage to exit at the back end, that's what risk assessment of the economy and financial health of the economy and then obviously the portfolio companies. And then, of course, the portfolio comp portfolio company just to get back our investment, which we are. And then finally share buyback, we haven't bought shares in a while. And I think the program is coming up for renewal. So -- our job is to get that program renewed at appropriate time and at the appropriate time, buy back shares. Thank you very much for your patience. It's a bit long, but I needed to spend the time kind of appreciation of the dynamics of SCI. Thank you.

Thank you very much for that very detailed walk-through. I'm sure listeners and investors alike appreciate all the clarity that you brought to SCI's performance and the trajectory of the business. Now we'll move on to the usual question-and-answer segment. [Operator Instructions]

All right. So just to jump straight in.

I'll have some of these YouTube questions and some very good questions coming from the YouTube chat this time. So EXIM provided a USD 100 million facility to a company in the Bahamas, Bahamas group of companies. And given SCI is pushing the Bahamas, this is a last opportunity. And if SCI had the large revolving facilities that they have been seeking, they could have supported that company. And I suppose the question is -- or rather the person is looking for comment on that deal and also updates on the large revolving facilities.

Yes. So excellent observation and question. So -- this is probably public knowledge, right, but maybe it's not. So the way we look at AI is that they are actually validating what we have been doing in Bahamas for the past 5-plus years, right? So we have funded over 70-odd million or more in transaction in Bahamas. So we are validating that. That's the first point. Second point is we can coexist, right? We don't view it as a last opportunity process because we don't have $100 million to give to one single portfolio company, right? And the second point is that we actually this [indiscernible] We actually finance that same portfolio company and we have relationships with that same portfolio company, and we continue to fund projects for the same portfolio company. So more -- getting that $100 million is great because it just means expanded opportunities. So we will still do transactions. Now we have multiple other such transactions within the country. So I understand the question, but we don't look at it as a lost opportunity because it didn't stop us from financing transactions for the company, and it won't stop us from doing so right now as we speak and going forward. because the opportunities are so numerous. And by coming, they are saying yes. So in a way, the deal might actually help us, right? Because remember, we are trying to -- we have been saying that we want a big credit line or big financing line to do multiple things because we don't have enough capital. So we are close to the situation and we understand -- let me say that we are close to the situation and understand coming and how that might actually be very beneficial to us because it's a DFI development finance institution that's coming and saying, yes, this thing actually in this market actually is very good. So that's how we look at it, and that's how it's actually playing out for us in reality. And when I can say more than that, I will say more than that. Obviously, we are -- as I said before, we are seeking financing from multiple partners, and we were waiting on business license which we received. And so in short, we will -- you will hear additional information about what we are doing and our expansion within the Caribbean. So we view AXIM as a very good entrant to validate what we have been doing, which may be with AXIM going in might not have been construed as a big enough or robust enough thing to do a market. So we're happy actually that this has.

Okay. The follow-up question, which you actually just hinted at, but I will perhaps allow it to answer it again just so that investor has the clear picture. There was talk of a new business venture revenue line item to come. What is the update on that? And where can we learn more about what it is?

Well, we can learn more about what it is once it's been formally launched, which should be -- we are going through the exit fees -- we were doing some work. We are now going to the execution phase. Companies are ready registered, et cetera. And we are going to -- nothing that you do when you have a new business, right? You need to put in the operation piece to ensure that once you start, then you can take. So that's what we are doing, and we are working with an international financing partner who will be providing the first set of funding and then we will expand that funding base. And we hope that we can do this growth business ramp it up very fast given our expertise in the area. So the more about it until when we feel comfortable to release information. As you know, you need to work inside. And then when you have something concrete, they [indiscernible]

Thanks for that, Jason. Okay. Two keeping questions here. So the first one is why hasn't the dividend yield target of 5% at APO price increase since you have hit the target several quarters ago?

Good question. So I actually interrupted during the presentation, but happy to answer it more clearly. So as I said before, at the end of the financial year last year in June and September, we had earnings -- we had the earnings call for the financial year-end, we would have said that we did change our risk model to credit the credit lines with international best practice off shelf, which Puerto Rico has been using for quite a while. So we migrated the SCI Pharma it that increased our ECL. And then we had a large company that presented a restructuring plan and that restructuring plan would have caused -- as you look at the audited financials, you'll see that the ECL that we carried there was 3.6 million or thereabouts and the majority of that would have been due to one single portfolio investment. And so because that Stage 2 restructuring exercise or restructuring exercise led to the reclassification from Stage 1 to Stage 2 and there were uncertainties around how that will execute and unfold, then obviously, that would have -- we took the early upfront ECL charge and basically no need to wait until everything has been finalized. Happy to say that things have advanced substantially, but they are not like 90-something percent, not 100% there yet. So we felt it prudent enough that based on reduced earnings that would have reported in the financial year that 1 million would have been the appropriate dividend versus 1.6 million. So it would have been above the 5% if we had paid another $1.6 million dividend. So it's just out of an abundance of caution to say, well, we have many risk. And if we have additional expected credit loss so substantive, then we can't we shouldn't, in my view, pay a $1.6 million dividend, which would be consistent with everything being H because that's the dividend that we have been paying for like 3 or 4 quarters in a row when everything was H, right? And so that's the reason why we reduced the dividend from 1.61. But at the same -- and then if we fast forward now, we actually have Hurricane Melissa that happened in Jamaica that basically, we have 24% of our portfolio is Jamaica a quarter, and there are quite a decent number of companies that got hurt and got hurt bad in some instances. Obviously, the companies are restructuring and rebounding and so forth, but it's going to take time. And so if you combine that with our Stage 2 companies that we have, which means that we are taking additional expected credit loss, we would be prudent if we continue paying the same level of dividend as if nothing has happened to the portfolio. I mean, our expectation is that, okay, we will get through this period, just like when we were in COVID, we got through the COVID period. But we have to be prudent because we don't know 100% sure. So effectively, the reason why our dividend yield is because we paid dividends in 1.6. And the lower dividend we paid, we view as a temporary lower dividend. And the reason why the temp lower dividend is very obvious. We have a very big Puerto Rico is almost going to be 50% in short order based on the pace of the deployment business is hiring and they are paying cash back to SCI. So once things normalize, obviously, one could even say that in over a long horizon, the dividend from Puerto Rico by itself, for example, right, could get the yield on the APO price to be above 5%, right? -- if you extrapolate. So I'm just betting for patience from shareholders on that. I mean we have to be prudent. And what we want to do is prudently pay the amount of dividend that fits with the rationale with the company. And at the end of the day, if things rebound faster than what we are anticipating, then the dividend will just grow faster and higher. And everybody knows that Puerto Rico start to pay dividends that our claim that we want to keep generate a dividend yield that is very high is real, right, because we have -- we are showing that we have another source that can now pay cash, which obviously does flow directly from one source to the other. So -- we'll get there, but we are going through a little bit of period which what I said happened in Q2, again, those are some that we don't -- we prefer to keep reserve the dividend payment. And then once we see the course clear, then the dividend gets increased to beyond the 1 that it was before semi, which was 3.2 million run rate. Obviously, dividend is substantially higher than 3.2 million once all what I said in terms of the plans that SCI has works out.

Okay. Thank you for that, Jason. Take one more from you to -- so for the period, profits are down and the dividend is low, and there have been no buybacks this year or since last year. However, management fees are up. Could you commit to executing some share buybacks this year? And will all dividends from PR be paid out to SCI shareholders?

So I'll answer the last question first. A dividends being paid out to SCI shareholders. That depends, right? I mean -- that depends. So -- but for the most part, yes, the dividend is being paid will be used to fund the dividend to shareholders. But I don't want to think that, okay, if it pays, that means we are going to pay part of the dividend to shareholders. That's not necessarily the case. That's how business work. But there's nothing stopping us from doing so. So that's one. And then there was a comment about management fees are up versus profit is down. So again, remember that management fees are paid are calculated based on assets under management, right? -- and its management fees. So if assets under management increased from 10 to 20 to 30 and then it dropped to 10%, right? That would be 4 different months. And so the question is when you started out when you had 10 and then you had [indiscernible] of those management fees and compare to the period where the management fee dropped to 10%, obviously, the management fee would be higher, right, because your AUM actually grew until it fell. But the time period over which the AUM fell wasn't substantial enough to offset the higher management fee from the higher AUM. That's one. And two, net profit is down, but we explained why net profit was down. It's a combination of the deferred recognition as well as the offset for the dividend. And the fact that like I said last year this time in the earnings call, I did make to say that the profitability, which actually would have jumped out aggressively I think first from the first quarter, the profit figure was like 5 million, which clearly I said at the time was far too fast, which it turned out to be. So the way we look at the business, right, is that we have paid out, I don't know, almost 1/4 of share capital as dividends and we have missed a dividend payment since inception during the worst crisis in -- certainly our lifetime when everybody else most pay dividends. So I think that management has certainly to a little -- to give us a little bit job that we have done so far, granted our shareholders your company. But we -- our philosophy is to get the company back on the track of EBITDA being above the 5% yield. And we have thrown you and we have been telling you well in advance is about 18 months now I have been talking about Puerto Rico business and going to expand what it means and when that time comes when the dividend from Puerto Rico will start getting paid and the proof of the pudding in terms of the dividend from Puerto Rico. And you've seen it from the frart.'m also saying that on a go-forward basis, dividends dividends will be substantially higher than they are today. And then the third point is around buyback. So yes, we did buy back any shares last financial year. We can understand why I kind of gave all the reasons why we did buy back shares then. We didn't have enough cash to go and buy shares deploy capital where we see fit, right? Certainly, for this year, we'll be seeking to, at the appropriate time, buy back shares. But share buyback is a function of many things, and it's also a function of liquidity and opportunity. And the opportunity can be there, but the liquidity simply isn't because liquidity needs to be more properly channeled in the areas that has the biggest impact. So that's how I have to answer that question. But the buyback isn't going anywhere, right? It's going to get renewed and then it's a mechanism that we want to maintain because we believe in the strategy of SCI and where SCI is headed as we have clearly outlined where it is headed in terms of expansion plans to grow the platform to get it much, much bigger so that it can deliver substantial dividend payment. And just for context, public listed private credit, the dividend are like twice what SCI is. So that's the gold standard, and that's what we are aiming for ultimately. But it's not -- does not overnight. We have to do it too early in a manner that is sustainable.

Thank you for that, Jason. So I'll go over to the team for minutes for some of the questions here. I see some very good questions from Mr. David as usual. So first question would be, is the current revaluation of the JMD USD currency pair to 17 to USD 1 going to translate to a wider FX loss in Q3 2026.

Well, I don't know what will happen in Q3 2026 because I don't know where the currency is going. I mean it has appreciated to that level, no, but it could as quickly reverse, right? So the story is once it appreciates it be FX loss. If depreciate is a gain. And this is how it has been from SCI decided that we would not fund a lot of J dollar assets. We will fund asset only borrow and fund USD, which has worked beautifully for us over several years. So I mean, ultimately, when Jet start to build back properly, we are going to have to import a lot of stuff. So I expect the currency to go up and down, right? It has been trading with a band and that band kind of widened out pre. -- so it just ratcheted back to the lower side of the band. But we don't really watch that. We just do what we have to do to deliver value. And in any event, the SCI, we don't expect FX to be a big massive issue for SCI. -- if it appreciate, certainly, you're going to see an expansion of FX losses unrealized. And if it shift back in whichever direction, the opposite happens. But we don't try to do anything like that. We need that we don't think it's material to SCI's financial prospects in that sense. If we think it is, then we'll take action. But at the moment, we think it's a beautiful thing to borrow and invest in for the most part.

Thanks for that, Jason. For this next question, I know we spoke a bit about the pipeline of approved deals, but perhaps maybe go a bit further into the origination pipeline. But the question is actually, what is your expectation on demand or deal flow in 2026 based on the Hurricane Melissa impact?

Good question. So I mean, I think last quarter, I said that we were seeing very early signs of massive demand. And I don't think we haven't -- so obviously, we don't have demand we have to existing portfolio companies to recover stronger, right? And there are relationships that we have companies that we would have invested in 2, 3 years ago, they paid back our money and now want to do XYZ, right? And there are companies that are in the backbone of connectivity across Ireland. There are companies that are in the energy space many, many companies in the food distribution space, right? Obviously, distribution business, modern, you have to rebuild the facility. You have to help the workers get on their feet. You have to put in probably additional infrastructure maybe before you didn't have solar and you say, okay, I need to put some solar as part of my energy mix and then you have to restart your inventory and open windows and then reconnect with those supplier contracts, right? And obviously, there are also people who from a receivables point of view, they need substantially longer lead time, some receivables financing. So they are just like a financing opportunities that are coming across our desk every day. And obviously, our job is to, right, to ensure that we get the best bank for the book, so to speak. But absolutely, we are seeing huge demand. And one of our financing -- the facility that we are closing now in terms of financing to SCI actually is a dedicated facility for Jamaica. So hopefully, we can close that very fast and deploy that capital very fast just to Jamaican companies only because we are seeing the economy is strong economy, obviously, is holding up well, but we need a lot of capital, a lot of capital from any capital come from to help to get the economy back in good shape. So we are paying part in that. So to answer the question I can't put a number on it because everything going to fund. But we are seeing maybe $100 million in transaction that we would fund. But obviously, we can't fund [indiscernible]. So I can imagine what we are...

Okay. Thanks for that, Jason. And just to go back a little bit in terms of the share buyback program, a lot of questions from investors in relation to our share buyback strategy. So I will just ask, I guess, a 2-part question from actually 2 different investors just because I believe investors really want some clarity on the strategy going forward. And so those questions are, one, in terms of the refresh of the program, will that refresh be based on the amount not deployed thus far from the previously stated program size? Or will the whole program size be refreshed? And two, in terms of sort of the pause in share buybacks thus far? And given the reduction in dividend, what is your opinion on how that affects the stock price? In other words, do you believe that, that will cause the stock price to be depressed? And what is your strategy to manage that going forward?

Good question. I mean, in terms of stock price, to be honest, when we were buying back shares, we didn't see the effect on the stock price in terms of it being like consistent. If we buy back shares today, the stock price went up and then it goes back down. It's like when dividends are being paid, the stock price went up before dividend and drop off after, right? And so from my perspective, share buyback doesn't share buyback doesn't have my view that is now having a longevity, whatever ups happen, it doesn't last, right? And so I'm not so much focused on using share buyback to top up stock price. I'm more, okay, our job is to say we need to deliver earnings of $1.20, $1.50, I mean, USD 20 or USD 50, right, which would be like, okay, let's keep doubling, which is why we have a target of 20% per year growth in EPS, right? -- grow EPS 20% per year, then we get up to the USD 5, let's say, USD 0.2. Then if my EPS is and somebody is doing a PE multiple, then clearly, what's going to start happening is the earnings of the firm relative to the price is going to become ridiculously cheap. And then number two, because the dividends are actually increasing. So based on our strategy, we launch a new business, we get the additional financing facility. And so SCI is making more money. And obviously, Puerto Rico is making more money at Puerto Rico Public reach catch up to SCI is at 200 million in AUM, right? And now it's making -- instead of making 4.47 million in profit, which it did last year, is now making closer to 10 million in profit. And then the question is, well, what's the dividend that will kick off SI, right? Because if you're making $10 million in profit and you do say in steady state, in most uncereadyate you said you're going to pay 40% of that in dividends. That's like $4 million per year, right, $2 million every 6 months. So when I look at it -- if I look at it from that perspective, and that's our fundamental job and don't worry about short-term generation if I buy back a share, the stock price go down, and I'm worried about it that much, right? Then if I do that, if I do those 2 things, which is to grow the EPS and in turn, grow the dividend because Puerto Rico is light business SCI business, then that will force the stock price to multiple higher than where it is today. And so that's the strategy. That's the strategic direction in which we are headed, right? I'm not trying to say, well, I want the stock price to double from $0.06 to $0.12 or triple to $0.18 and I'm going to buy back this amount of share. So that's how I answer that part of the question. In terms of refresh of the program. I think the program will be refreshed probably with what was remaining, which is still a big figure, right? Because I think it was a 9 million buyback, and we probably bought back 1.2 -- I don't know, 1 point something or 2 million. So I think the refresh will refresh that way. But I'm saying that for me, the job is create an investment vehicle, SCI that you can go and buy the shares any day and use it for your college investment fund you know that you will pay consistent dividends even X. And when you look at the alternatives in the market, you can't get that level of consistent dividend distribution. That's our philosophy for SCI. That's what we want SCI to be. So you look at the bond and say, okay, I can buy this bond or you can buy whatever, okay, you can also buy SCI because it's giving you higher than our competing bond is exactly what private credit companies globally do, right? They are literally investors look at them as literal income investment. And obviously, because the stock price is so low for those who buy it at what I'm going to call a cheap level. And when that day comes, you have the best of both worlds. You have decent because your price is relatively low and then you have a dividend. That's the objective that we are pushing for, which is why we are so deliberate about our strategy of communicating well in advance. When we have challenges, we communicate with challenges. When there are good things, we communicate the good things that we -- this SCI needs to the current management the next generation at whatever time. So it become stable. So that's what we're trying to do, and that's how we look at the share price. And I understand why the question is being asked that way, but I'm giving feedback as how I look at it. And anything we do with share buyback, I think it's going to -- the effect of it based on the shareholder attitude is going to be -- I think it's going to be temporary. I think the permanent transition to a higher sustained stock price is we deliver EPS growth that then deliver we are doing twice as much net profit, SCI twice as much net profit, which we don't think is very far away because if we are able to unlock $100 million in capital SCI itself, 100 million and is looking to get to like 150 million. So they're looking to increase this by 50% then we're talking about real capital that can really damage. So that's how we're looking.

Thank you for that, Jason. Another question from T. Do Sign Credit Investments expect to seek an extension on the Class B preference shares maturing in December 2026. Also, does SCI expect to raise more funding this year to meet higher demand in Jamaica?

Good question. So '26, I don't know. To be honest, it all depends, right? Because if we are able to close a transaction, international financing party and the structure of that transaction is that -- and I'm not giving, right? The structure of that deal is let's take out some of the debt that are maturing in 1 year, 2 year. So we want a big facility that is 8 years, right, 7 years or whatever ten,eren. -- short maturing facility because a lot of work to just keep going to the market and refinancing and all that and get a big long-term facility. Then we take out the maturing facilities, right, that are like in 1 or 2 years' time, men. And then we have that big 7 or 8-year facility that is well structured and as an accord as the business grow, it can expand and grow. And then we don't have to worry about coming to market every minute and there's a lot of energy that is, I wouldn't say wasted energy, but it's more efficient for us to know, okay, my financing is secure for the next 7, 8 years. I can call this capital over time until I focus on origin and risk makes the job easier and get more for shareholders, right? And it's actually cheaper as well because each time we go out to raise capital in the market is raising the capital. So that's how I look at. What was the second part of the question? If I -- so I'm not sure whether or not we're going to extend or not. And in terms of raising new capital, SI financing firm, we are always in the market raising capital. It's just that we don't announce a lot is not a public offer, right? And as you can see, we raised capital, we don't need to do a public offer. But I don't know whether we will or won't at this stage. But like I said, we are working on several financing transaction. But in the case that we are, we'll announce it as usual.

Yes, I covered the question. Thanks, Jason. And I suppose the investor that asks the share buyback question, their feedback was -- their comment was I appreciate your feedback regarding the share buyback versus the dividend yield. And I agree with you that improving EPS is a better strategy. So just giving me that comment there. All right. Just to clarify a comment made by someone on the teams. So what's your purpose for -- or what is the purpose of the business license Also, how much funding do you expect to receive from the partnership? And will it go directly with SCI or PRCF? So maybe just clarify the revenue item and sort of how that works and which contracts.

So I answer 99% of the question that was asked, except to say that it is SCI and not PRC. -- has nothing to do with Puerto Rico. So it is SCI. And like I said, our philosophy is not to make too much noise. It's just that where we are at the moment, it's appropriate for us to disclose it because anyone could actually go and find our information. And then yes, so we disclose that we are doing this company register. I prefer not to say how much money and which country that yet. But we will do so at the appropriate time, and there will be proper press releases and the whole with the financing partner, of course. So that's all I can say at the moment.

Okay. Thank you, Jason. And I think I will just take a final set of questions from either the YouTube chat or the -- actually, there's a couple more questions. All right. On time permitting, of course. I will just ask these very quickly. or rather, well, there's a comment from an investor on YouTube. I guess I'll read it out. We don't need buyback, use the money as capital, so we raise less money. Jason is taking the right approach. So -- and then -- so a question here now. What kind of fundraising system do you have in place to get the deployment of capital you need so that you don't run out of dry powder? Maybe you can just clarify that.

Yes. So the Investment Manager has an investment banking business and the investment banking business obviously is charged with raising capital alternative companies on the investment management platform that has. And obviously, what the IB team does is collaborate with other investment banking teams. So as you well know, there have been quite a number of different investment banking teams that we have collaborated with. I don't want to call anybody. But everybody knows the investment banking team that are in and we have collaborated with quite a number of them very successfully to do some never before done things. So that's the mechanism that we have for raising capital. We go to the Board with approval of the Board based on the strategic plan that has been laid out for the firm and the budget that we have for the firm, we want to raise amount of capital, the Board approves and then -- we hand that over to the investment banking team who does our road show, et cetera, back in the day, we used to get underwriting deals. Nowadays, that's not really done, but we get commitments from pension funds, institutional investors, mainly -- so if it's a public offer, then you have the normal prospectus that is then shared for investors to raise preference shares or debt that is used in Jamaica Stock Exchange. So we can use that or we go to private markets and do a private placement, which is registered with the FSC both are about to be registered with FS. And that's how the mechanism work and have been working beautifully. But we have added to that, which is to have collaboration with banks. We have some local bank relationships with about USD 8.5 million credit lines. very tiny Japan, which is why we have pushed to go internationally to get financing and the first deal that is being closed is actually going to be bigger than all the credit lines that we have SCI has combined and these are very small transactions for the counterparty. Obviously, our job will be to get that to be multiple times bigger than it is, obviously, because SCI is just going to be a 10-year company now, very young in the grand scheme of things. then everyone is always going to be cautious. But once you on that and then deliver, then sky is because the ability to give us like $100 million is there, right? It's like nothing to do is like that's a drop in the bucket for the counterparty. But we have to prove ourselves. And that's the whole thing. And so once we do this once, obviously, we have modified because then we approach -- we have been approaching other international financing parties who have looked favorably at SCI given its track record over the last 9.5 years and well, we'll work with you, but these take extremely long. And you can understand why, right? It's just a 10-year-old company, just yesterday, not in high school 9.5 years old. So the thing is once you open the door once it becomes the rev. So that's our mechanism for raising capital, a combination of using local private markets and then obviously, international financing market, there is a lot more capital, but it takes like 1.5 years, 2 years to open those doors. And then once you open the door, Yes, that's it. You don't need to jump to any more. And that's what will effectively done. Hopefully, we can announce this quarter the same thing. I don't want to say anything more. But just like the repayment of our Stage I we finally get the cash, right? I finally get the first quarter cash. Hopefully, I can come very sharp and close. We just wait one item to close that, and that will be a monumental moment for I think it will be the first I think in...

Yes. Thanks again, Jason, for that clarity. I think we've largely answered and cured some of the uncertainty from investors on the call. And we appreciate all the insight that you've brought to SCI's financial performance during the period and going forward. I'd like to remind everyone that the recording for this call as well as the presentation deck will be available on both the Sygnus Group website and the YouTube page. I want to give a special thank you to our attendees this afternoon, and thank you for taking the time out to listen to the presentation. you have any lingering queries or if you feel like your question was not answered in its completeness or you have additional questions, feel free to reach out to us via [email protected] or [email protected]. And I'd like to wish everyone a very productive rest of week. It's a holiday week. So feel free to kick off your feet on a beach or go to charge. But either way, have a good rest of the week, and goodbye.