HYFT

• Company Strategic Milestones and Platform Positioning

  • Fiscal 2026 was a transformative year: unified the company's discovery engine and bionative AI layer into a single commercial platform, with the market now aligning with management's long-held thesis that durable value in AI for biology comes from curated proprietary biological data and context, not just AI models. The company's HIFT architecture, built over 20 years of curated functional biology data, cannot be quickly replicated by competitors.
  • Secured the first two contracted recurring platform SaaS agreements in company history, marking the entry into a scalable recurring revenue model; Reef IQ, which organizes client discovery data into secure, governed biological contexts, was launched.
  • Divested non-core Netherlands wet lab operations to AVS Bio, strengthening the balance sheet and sharpening focus on the integrated computation and wet lab discovery model.
  • Regained NASDAQ compliance organically, without a reverse split or shareholder dilution; added to the Russell 3000E and Russell MicroCap Indexes, expanding institutional visibility. Completed the rebranding from Immunoprecise Antibodies to MindWalk Holdings Corp, with material increases in brand engagement metrics. Added senior commercial leadership in Boston and San Francisco, and hired Scott Areglado as CFO in October 2025.
  • Entered a co-engineering partnership with AMD to optimize the MindWalk platform on AMD Instinct hardware, cutting processing time from 145 days to 4.5 hours for large antibody screenings, reducing cost per million literature mining samples by 39% and increasing embedding throughput by 70%.
  • Over 20 client molecules (with more confidential programs unannounced) supported by MindWalk have entered clinical trials, and one client-supported drug received FDA approval and launched commercially in June 2026. The company filed an extension to its foundational HIFT patent to protect its biological context organization architecture.

• Internal Pipeline Progress

  • The DENKE (dengue) program has produced strong preclinical results, with a conserved pan-serotype target computationally identified and validated in vivo across two independent campaigns.
  • The GLP-1 program designed a receptor agonist in silico that demonstrated in vitro activation of the GLP-1 receptor comparable or superior to semaglutide.
  • The influenza program identified a functional invariant across over 2,000 influenza strains that conventional sequence alignment cannot detect. Additional programs for Ebola, hantavirus, other infectious diseases and autoimmune conditions are in early development.

• 2027 Strategic Pillars

  • Pillar 1: Build intelligence-driven recurring revenue: deepen adoption of Lens AI (with double-digit clients already active on the portal, and dozens more programs in progress) as a feeder for broader Reef IQ data management adoption and recurring SaaS licensing.
  • Pillar 2: Advance and protect the internal proprietary pipeline of biologics and vaccines, leveraging the integrated AI + wet lab discovery engine to identify targets and molecules conventional approaches miss.
  • Pillar 3: Deepen high-value enterprise partnerships, following the model of the AMD engineering collaboration, with the goal of embedding the MindWalk platform alongside partner capabilities.

• Management expects operating expenses to increase in fiscal 2027 as the company continues to invest in pipeline assets, Reef IQ product development, and commercial infrastructure, while maintaining disciplined capital allocation.
• No formal numerical revenue or margin guidance was provided, but management expects SaaS recurring revenue to carry very healthy gross margins, with margin expansion expected as platform utilization increases due to the higher-margin nature of recurring SaaS revenue versus legacy fee-for-service work.
• Management commits to disclosing material pipeline milestones (including strong preclinical in vitro/in vivo readouts and progress toward IND applications) as they are achieved, but will not provide incremental non-material updates to preserve focus and protect intellectual property.
• Management did not revise prior long-term targets; the core focus for fiscal 2027 is scaling platform adoption and converting client engagement into deeper recurring revenue relationships, while advancing the internal pipeline.

MindWalk does not break out formal separate product segment financials in this call. Total full-year fiscal 2026 revenue was CAD 15.6 million, representing a 46% increase from CAD 10.6 million in full-year fiscal 2025. Q4 2026 revenue was CAD 4.1 million, a 50% increase year-over-year from CAD 2.7 million in Q4 2025. The first contracted recurring platform revenue (from two enterprise Lens AI SaaS agreements) was booked this year, but it was not material to total full-year 2026 revenue; the vast majority of 2026 revenue remains fee-for-service project work. Full-year 2026 gross profit was CAD 9.1 million, equal to 59% of total revenue, up from CAD 5.7 million (54% of revenue) in 2025. Q4 2026 gross profit was CAD 2.5 million, equal to 61% of revenue, up from CAD 1.6 million (58% of revenue) in Q4 2025. Total full-year 2026 operating expenses were CAD 24.1 million, down from CAD 42.6 million in 2025 (the 2025 figure included CAD 21.2 million in intangible asset amortization and CAD 1.5 million in impairment that did not recur in 2026; on a comparable basis, operating expenses increased ~CAD 4.2 million driven by strategic investments. Full-year 2026 R&D expense was CAD 4.9 million, up slightly from CAD 4.2 million in 2025. Full-year 2026 sales and marketing expense was CAD 5.9 million, up from CAD 3.6 million in 2025, reflecting expanded business development staffing and capacity. Net loss from continuing operations for full-year 2026 was CAD 15.1 million, down from CAD 33.1 million in 2025. Cash balance as of April 30, 2026 was CAD 11.5 million, up from CAD 10.8 million as of April 30, 2025, after generating CAD 10.3 million in non-diluted net proceeds from the divestiture of non-core Netherlands wet lab operations.

• Forward-looking statements are inherently subject to risks and uncertainties that could cause actual results to differ materially from current expectations, including: the company's history of net losses; the ability to convert initial platform adoption into sustained contracted recurring revenue arrangements; market acceptance of the company's core products Reef IQ and Lens AI; intellectual property protection risks; competitive pressure from other AI drug discovery platforms; and unfavorable capital market conditions that could impact access to funding for operations and pipeline development.
• AI hallucination in drug discovery creates major industry risk: incorrect outputs can kill drug programs and cost hundreds of millions of dollars, and MindWalk's management notes this risk is not well addressed by competing model-first platforms, a gap Reef IQ is designed to solve.
• Early internal pipeline programs carry inherent development uncertainty: it is unclear which of the lead programs will advance to key milestones the fastest, and there is no guarantee of successful clinical development or regulatory approval.

Q: The first two recurring SaaS contracts were signed this year: are these material to 2026 total revenue, and how does the revenue recognition work? / A: The two contracts are not material to full-year 2026's total CAD 15.6 million revenue. Revenue is recognized evenly over the contract term, after invoicing and upfront payment. The first clients converted from existing fee-for-service engagements after seeing platform value, and this adoption path is the model management will target for future Reef IQ data management engagements.

Q: How will gross and operating margins change as platform utilization grows? / A: Recurring SaaS platform revenue is expected to deliver very healthy margins. The ongoing shift in revenue mix toward higher-margin recurring platform work, combined with existing structural efficiencies from the non-core divestiture, will drive overall margin expansion over time.

Q: How is Reef IQ packaged for customers, and can it be sold standalone to new customers who use other AI models? / A: Reef IQ can be packaged as a standalone offering, and is compatible with any external AI or generative/agentic AI platform. It solves the critical industry problem of AI hallucination (which can cost hundreds of millions of dollars in wasted drug discovery work) by providing validated biological context that improves all AI models' accuracy. It can be adopted by new customers without prior MindWalk fee-for-service work, though most initial deeper engagements are expected to come from existing clients that have already seen platform value. MindWalk no longer offers piecemeal fee-for-service introductory work, requiring either partnership or direct platform licensing for new engagements.

Q: Of the three lead public internal pipeline assets (dengue, influenza, GLP-1), which is most likely to advance meaningfully over the next year? / A: Management cannot predict which asset will advance furthest. All three are progressing well, with some assets having prospective partners already lined up that could speed development, and undisclosed internal programs may also advance faster than the three public lead assets. The company is prioritizing these programs, adding specialized team capacity, and pursuing non-dilutive funding to support development.

Q: What is the expected trajectory of operating expenses over the next two quarters, and when can we expect pipeline updates? / A: Operating expenses will increase as the company invests in commercial expansion, Reef IQ R&D, and pipeline development, though management will maintain disciplined capital allocation. No clinical updates are available currently as no internal pipeline assets have entered clinical trials. Material milestones (such as positive preclinical readouts or progress toward IND) will be disclosed publicly when achieved, but non-material incremental updates will not be released to preserve IP and avoid unnecessary noise.