Moving iMage Technologies, Inc.

Greetings and welcome to Moving Image Technologies Fourth Quarter 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. 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 call over to your host, Mr. Chris Eddy. Thank you. You may begin.

Thank you, operator, and thank you all for joining today's call. MIT President Francois Godfrey will provide a business overview, and CFO Bart Bedard will conclude with some financial highlights, after which we will open the call to investor questions. Today's conference is being recorded, and an audio replay and written transcripts will be posted to the investor section of the Moving Image website in the next few days. As a reminder, except for historical information, Matters discussed on this call 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 take place. Actual future results could differ materially from those statements. Further information on the company's risk factors is contained in the company's quarterly and annual reports. filed with the SEC. I will now turn the call over to MIT President Francois Godfrey.

Thanks, Chris, and thank you all for your interest in moving image technologies. I'd like to begin with the broader exhibition environment because we believe it provides an important backdrop for future opportunities. The summer box office was exceptionally strong. According to Variety, domestic ticket sales totaled $4.76 billion from May 1st through Labor Day, making it the highest grossing summer on record. This trend has also benefited individual theater operators, which are reporting their strongest ever summer season, including record attendance and particularly strong performance for premium, large format, or PLF auditoriums. Importantly, this improvement is not simply about higher ticket prices. Attendance has also been increasing, and the film slate has demonstrated that audiences will come to theaters when there is compelling content across a range of genres and formats. Echoing this trend, Bank of America's CEO recently commented that the discretionary consumer spending remains broad-based, including cruise bookings, restaurants, and out-of-home entertainment. As he put it, the movies have come back because they've had some good movies. To that, I would add that there is another important driver. Movies offer a far more affordable entertainment experience compared to other out-of-home options such as concerts, and many more. Exhibitors have an opportunity and increasingly a reason to invest in the physical environment and technology that make the theatrical experience distinctive. This is where we believe moving images' deep experience and decades-long track record allows us to play a highly differentiated role. We help cinema operators create the highest quality guest experiences. utilizing our unique design, engineering, technology, and product and service capabilities. We work with customers every step of the way, from facility and system design through product selection, installation, and commissioning. Whether the project involves a large format auditorium, a multi-screen refurbishment, a new theater build, or a single auditorium upgrade, we deliver solutions tailored to each customer's needs. In fiscal 2026, we made meaningful progress enhancing our capabilities and long-term growth potential, most notably through the acquisition of the DCS cinema loudspeaker business. DCS is far more than an additional product line for MIT to sell. It enhances our competitive position and market reach with a highly respected proprietary cinema audio platform with a global customer base established with over 20 years of success. DCS provides entree into an expanded base of customers and prospects, both domestically and abroad, including new customer relationships that have already generated initial revenues. Given MIT's historical focus on domestic opportunities, the DCS line provides a compelling platform to expand into international markets, where we are building out our dealer network to support that growth, DCS also provides us a proven proprietary solution that enhances our potential to build relationships with larger domestic exhibitors. Bottom line, DCS strengthens our offering, expands our customer reach and value proposition, and is already benefiting our results. while there have been some challenges in integrating the business and building out production and global logistics we are making solid progress managing the business which we expect to support future improvements. The response from the international customers and distributors has been particularly encouraging. DCS products have now shipped to more than 22 countries and order interest continues to build. As these relationships develop, our objective is not simply to sell more loudspeakers and audio solutions. We intend to leverage our expanding international network to offer other MIT products and capabilities. Turning to the domestic market, we are very encouraged by the breadth of project discussions and our confirmed project pipeline. We are advancing several significant opportunities across the United States, including a substantial multifaceted project in the Bay Area that is currently contemplating to be far larger than any single project we have undertaken in the last several years. We have received a meaningful initial deposit from the customer and expect work to conclude by the end of calendar year 2026. Throughout our customer discussions, there are several themes that reoccur. Premium large format auditoriums remain an important area of investment, and immersive audio continues to be a key component of how exhibitors differentiate the in-theater experience. Moviegoers expect the theater to deliver something memorable, better picture, better sound, and a more integrated environment to create an experience they cannot replicate at home. While I focus my comments on the key initiatives, I also wanted to update you on our thinking about initiatives we have discussed in the past but have not been addressing in recent investor communications. The overarching theme for these initiatives continues to be our capital allocation discipline as we work to move our business to profitability and positive cash flows. Once we achieve that, we will be able to revisit other growth initiatives and the investment required to execute them. First is our translator platform, which is designed to provide cinemas with a common technology platform to support accessibility and language translation, descriptive narrative and sign language capabilities. Our wholly owned ADA compliant MIT accessibility products are an important component of that offering and we continue to see sales activity in that area. However, the underlying translator platform requires additional software investment before we can pursue the opportunity at greater scale. We are evaluating the appropriate development path and required resources as part of our broader capital allocation priorities. But at this point, I have no additional clarity on next steps or timing. In esports, MIT developed a gaming hardware solution several years ago that was to be marketed to theater owners in conjunction with an esports league. Thank you for joining us. CineQC is another initiative with potential, but requires continued development and related investment. CineQC is a SaaS platform utilizing secure near-field communication NFC area tags to link places, people, connected equipment, and time with roles, responsibility, and tasks with a third-party developed platform.