Altisource Asset Management Corp Com

Good day and welcome to the AAMC Investor Call. Today's call is being recorded. At this time, I would like to turn the conference over to Donya Sawyer. Please go ahead.

Good afternoon, everyone, and welcome to AAMC's Q2 2023 Earnings Conference Call. I'm Donya Sawyer, the Chief Operating Officer of Lending Operations at AAMC. Before we begin, I would like to remind everyone that certain statements made during this conference call may constitute forward-looking statements covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical in nature. As described under risk factors in our annual report on Form 10-K, forward-looking statements are subject to a variety of risks and uncertainties that could cause the company's actual results to differ from its beliefs, expectations, estimates, and projections. Consequently, you should not rely on these forward-looking statements as predictions of future events. Statements made during this conference call are made as of today's date, and the company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. As previously mentioned, today's call is being recorded, and a link to this webcast will be posted to our website later today. Now I'd like to turn the call over to Charles Frischer, member of our Board of Directors. Charlie?

Oh, thank you, Danya, and thanks, everyone, for joining us today. I will report on positive developments in our significant legal matters, provide an update on our lending operations, and talk about a potential new investment opportunity we are considering for the company. In the preferred shareholder case in New York, in June, the appellate division ruled in AAMC's favor and held that we did not breach any contractual obligation to redeem Luxor's preferred shares. Luxor now seeks to take a second appeal, which we have opposed. We have also opposed a motion to dismiss our separate action in USVI federal court against Luxor partner and former AAMC director Nathaniel Redleaf, alleging breach of fiduciary duty to AAMC. In our lawsuit against BlackRock and PIMCO in USVI superior court, AAMC status has been converted to party plaintiff. Last month, a staff master assigned by the court to review pending motions issued his recommendations. He concluded that the court should exercise jurisdiction over four of the five BlackRock entity defendants and both of the PIMCO defendants. The Staff Master also recommended that all of AMC tort and SECO claims, damage claims, be permitted to proceed. The party's responses to the Staff Master's recommendations are due to be filed later this month. For detailed information regarding these matters, please refer to litigation disclosures contained in our second quarter 10Q and prior public filings. Let me now turn to the company's lending operations. The Board of Directors is undertaking a comprehensive assessment to determine what can be done to improve the performance of this business to bring it in line with the expectations of the Board and our shareholders. Our fix and flip, construction, and other lending programs have not achieved profitability as fast as initially anticipated. We are reviewing multiple initiatives to address operational and capacity issues, reduce costs, improve liquidity, and enhance overall performance. During the pendency of this review, which is ongoing, we are taking steps to move loans more quickly off our lines of credit. As we review our lending business and as we continue our search for additional capital-light asset management businesses that could be accretive to our business and shareholder value, we want to report an interesting opportunity. We recently received a proposal regarding a new technology developed by an R&D venture led by AAMC shareholder William Irby. We invited Bill to join the call today to present this opportunity. As he will explain, this patented breakthrough technology is designed to substantially reduce energy loss and heat generation in electric vehicles, thereby increasing their range and efficiency. Given the enormous addressable EV market, These technology advances have significant upside potential. The opportunity is a pure intellectual property licensing play with low capital requirements. Structure and other details are still under discussion, but we have agreed in principle that the company's upfront cash commitment would be zero. The company's primary out-of-pocket expenses would be approximately $7 to $8 million in working capital over the next 18 to 24 months. These amounts would be expended as the technology is positioned for full commercialization. There would be a stock-based earn-out in increments of 10% of company stock earned when our share price exceeds $100, and as the share climbs above each $100 threshold thereafter, adjusted for appreciation attributed to lending. Any transactions would, of course, be subject to definitive contract documents, and the presentation that Bill is going to give is also going to be placed upon onto our website. At this time, I invite Bill to present his technology.