Moving iMage Technologies, Inc.

A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Brian Siegel with Hayden IR. Thank you. You may begin.

Good morning and welcome to the Moving Image Technologies first quarter of fiscal 2023 earnings conference called Webcast. With me today is Chairman and CEO, Phil Raffinson. co-founder and executive VP of sales and marketing, Joe Delgado, and CFO, Mike Sherman. For those of you that have not seen today's release, it is available on the investor section of our website. Before beginning, I would like to remind everyone that except for historical information, the matters discussed in this presentation are forward-looking statements that involve several risks and uncertainties. Words like believe, expect, and anticipate mean that these are our best estimates as of this writing. but that there can be no assurances that expected or anticipated results or events will actually take place, so our actual future results can differ significantly from those statements. Further information on the company's risk factors is contained in the company's quarterly and annual reports filed with the USFCC. Now I'd like to turn the call over to Phil. Phil, take it away.

Thank you, Brian, and thank you all for joining us today. I'm Phil Raphson. CEO of Moving Image Technologies, or MIT for short. Like last quarter, today I'm going to spend my part providing an update on overall industry trends that we believe will drive the tremendous growth opportunity for MIT over the next few years. And then Joe will provide an overview of MIT's business and growth strategy. He will then turn the call over to our CFO, Mike Sherman, to discuss today's results, followed by a Q&A. MIT serves commercial cinema owners, stadiums, arenas, and other live event venues, and esports. Today, most of our business is serving cinema owners and operators. In North America, there are approximately 40,000 screens, 18,000 of which are outside the top five circuits. While we work with majors, most of our business is with small to medium-sized operators. As you probably know, this industry has been hit hard by COVID during 2020 and the first half of 2021, with box office receipts declining from over $11 billion in 2019 to $2.1 billion in 2020. In the second half of 2021, the industry began to recover, and that trend has continued into 2022, with many blockbusters having already been released, and the year will likely finish strong with Black Panther, Black Adam, and Avatar, The Way of the Water. Momentum should continue into 2023 with an already exciting slate of releases expected, setting the backdrop for an even stronger year. As I've discussed on past calls, There are additional trail winds that we expect to benefit both the cinema and live venue industry. The first is related to government grants. As part of the CARES Act, non-publicly traded live event operators were able to access over $16 billion of grants through the SBA. This program, called the Shuttered Venue Operations Grant, or SVOG, to date has provided almost $14.6 billion in grants, with over $2.5 billion going to cinema operators. This money is flowing, and this spending is kicking off a multi-year growth cycle. Next, we are in the early stages of a technology upgrade cycle, especially for laser projectors and servers. During the last upgrade cycle, we participated in approximately 17,000 cinema screens over nearly five years. So we believe there is a long runway ahead, and our first quarter saw some solid activity in this area. Finally, theater operators used their funds for operations and to proactively refurbish, upgrade, and build new modern theaters to significantly enhance overall movie-going experience. This includes adding amenities such as in-house bars and lounges, breweries, restaurants, and in-cinema dining, among others. In fact, dine-in cinemas are among the fastest growing parts of the industry, and we are very well positioned with these circuits. So, how does MIT fit in? We are a technology and hardware designer and manufacturer, an integrator and distributor of third-party technologies, and a project manager. We have strong, long-standing relationships with suppliers, key technology providers, and customers, as well as architects and technical personnel, which help design in our products. Over 70% of our revenue comes from small to mid-sized cinema operators, which tend to be expanding more quickly than the big three, with whom we also work. From a prestige perspective, We have also installed over 40 in-home screening rooms for industry VIPs, which include senior industry executives, producers, and directors. In conclusion, I'd like to thank our dedicated employees. Without them, we would not be in what I believe is the strongest position we've ever been in as a company from an operational, financial, product, and competitive perspective. And for our existing and future shareholders, I feel your pain as the company's largest shareholder. The business and our stock are heading in the right direction, and we are working hard to bring new investors to the table. And when our blackout period is over, we expect to employ the prior authorized buyback. I'm excited about our strong growth perspective. over the next several years as we strive to turn MIT into a $50-plus million company. Now, I'll turn the call over to Joe. Joe?