Remark Holdings, Inc.

Good day, ladies and gentlemen, and welcome to the Remark Holdings Fiscal Year 2021 Financial Results Conference Call. My name is Kyle. I will be the operator for today and will handle the Q&A. As a reminder, this conference is being recorded. Now, I'd like to turn the call over to Brian Harvey. Please go ahead, sir.

Thank you, Kyle. Good afternoon, and welcome to Remark Holdings Fiscal Year 2021 Financial Results Conference Call. I'm Brian Harvey, Senior Vice President of Capital Markets and Investor Relations for Remark. On the call with me this afternoon is Kai-Hsing Tao, Remark's Chairman and Chief Executive Officer. In just a moment, Mr. Tao will provide an update on our business, and I will recap our fiscal year financial results. Following those remarks, we will open the call to questions. But before I turn the call over to Mr. Tao, I would like to take this opportunity to remind you that some of the statements made today may be forward-looking statements. These statements involve risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements. Any forward-looking statements reflect Remark Holdings' current views, and Remark Holdings expressly disclaims any obligation to update or revise any forward-looking statements after the date hereof. This disclaimer is only a summary of Remarks Holdings' statutory forward-looking statements disclaimer, which is included in full in its filings with the SEC. I would now like to turn the call over to Remarks Chairman and Chief Executive Officer, Mr. Tao, so he can provide additional color on Remarks' business and recent developments. Thank you.

Thank you, Brian. Fourth quarter results. 2021 was another transformative quarter for us in many different ways. First, we were able to make significant progress with the upcoming launch of our Metaverse and NFT platform. Second, despite the zero COVID policy in China, we are not just catching up on the businesses that have reopened, but have now expanded deeper into each industry we are currently involved in and expand horizontally into new ones. Number three, office success of winning our business with Brightline by building their AI security platform. We have not only expanded our efforts into new states and major cities selling the same security platform, but also into the United Kingdom and more specifically into London. In the fourth quarter, we began putting together a deal to bring the world's most popular music group to Las Vegas. and to partner with them in one of the world's largest hospitality conglomerates. The deal was consummated in February of 2022, and our take was to have the rights to build the metaverse and not in all the experiences surrounding the event. The response to this event has been overwhelmingly successful. Any way you look at it, it has presented itself to be a great launch point for our remarked AI metaverse called VegasVerse. As we are the first company in the world that truly provides both online and offline integrated experience and not just talk about it, we are very excited for what lies ahead. To go further into detail on what exactly VegasVerse is, VegasVerse helps connect the offline and online world as we know it, and creates a seamless experience for the two to build engagement. And in particular for Vegas First, fans that will be attending the concerts or other live events in the future will be given incentives to engage the physical properties through augmented reality games. The players then obtain NFT coupons, which can link together them with offline businesses, unlocking special coupons for special prizes, discounts, and more. The Vegas-first game check-in uses both augmented reality landmark recognition and a variety of game methods to bridge the gap between the metaverse and the real world. This will allow the fan to track all the important and popular events that matters to you. And being able to participate in their favorite star's metaverse stories and be their biggest fan by supporting them in the metaverse. They will be able to obtain and collect rare NFTs of the stars that they love and even share it on their favorite social platforms. And finally, also be able to jump into the star's world by becoming an important figure in their life and in one of our many gameplay storylines. Vegasverse puts the power in the fans' hands. and we believe this will be the ultimate technological experience for only the biggest fans. We welcome our investors to enter Vegas First on April 4th, this upcoming Monday, and welcome to the future of fandom. This once-in-a-lifetime opportunity to build with one of the world's largest hospitality conglomerates and one of the world's most popular music companies was made possible by the foundation we have built over the last five years with our AI platform. This foundation will continue to keep, will continue to drive benefits as we will continue to expand this metaverse opportunity to other live events and global celebrities. Already because of what we have done, we are building the metaverse lifestyle shopping opportunity for one of the world's most popular movie stars, and one of the world's most popular sports stars. Despite a very strict zero COVID policy in China, we were able to resume our business in the fourth quarter with additional deployments and additional wins. The strength is growing very well into the first quarter. While it's not without its difficulties, we are able to adapt and continue to deploy while winning new businesses. We continue to build and grow our businesses in industries and customers that you have heard in the past. These industries include smart campus with schools, smart communities, and construction companies. The growth in these industries continue to be strong, and while timing continues to be tricky due to the zero COVID policy, we are adapting and moving fast. In addition, we have now expanded our Remark AI platform into new verticals. One is creating the first aviation AI-focused platform for one of the world's largest airline companies. This is exciting, as you can imagine, because based upon the success of our launch, we can market this to other airline companies, especially because the AI platform focuses on safety and power efficiency. For example, our Remark AI aviation platform will be the foundation that all AI applications will be built off of in the future. These will include engine maintenance, fire and smoke detection, autonomous driving as it relates to passenger cars and baggage vehicles, and bird and drone detection. Other areas of expansion include in the areas of retailing, most specifically in food retail. We commenced a POC, or proof of concept, with 30 stores to improve service quality, kitchen cleanliness, food processing safety, and customer experiences. The next step after this 30-store POC is to expand into the first phase of 1,500 stores. The strategy is working well as we are seeing a lot of progress of taking these live tests and real contracts in China and bringing it to the U.S. Having these successes in a multiple of industries have allowed us to take these proven platforms to other parts of the world. We have been able to make significant headway into the U.S. Our first success is winning the AI security partnership with Brightline, the high-speed train going from Miami up to Orlando. With that, we have now increased our efforts to major cities like New York City and Chicago and states like Texas, Nevada, California, Florida, and New Jersey. A big part of this increased effort is due to the demand we are seeing from both government and private business post-infrastructure bill. The $1.7 trillion infrastructure bill that passed is a once-in-a-lifetime opportunity. Many of the RFPs and RFIs are in areas where we possess significant expertise, know-how, and real-life experience. This has to do within the areas of intrusion detection and fire and smoke detection, smart city, and smart traffic. We will continue to update you on our progress over the next quarter. and we're very excited about the things to come. We will update you as we are close to very promising milestones that we'll be hitting over the course, over the year.