Remark Holdings, Inc.

Thank you for the remark holdings. We are still on many additional participants and the call should begin shortly. We do thank you for your patience and please continue to stand by. Once again, you're holding for the remark holdings. We are still in many additional participants, and the call should begin shortly. We do thank you for your patience, and please continue to stand by. Please stand by. Good day and welcome to the Remark Holdings third quarter 2022 financial results conference call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Fei Tian. Please go ahead.

Thank you, Justin. Good afternoon, everyone, and welcome to Remark Holding's Physical Third Quarter 2022 Financial Results Conference Call. I am Fei Tian, Vice President of Investor Relations for Remark. On the call with me this afternoon is Kai-Hsing Tao, Remark's Chairman and Chief Executive Officer. Mr. Todd Brown, Vice President of Finance. and Mr. Robert Gaccio, Chief Safety and Security Officer. In just a moment, Mr. Tao will provide an update on our businesses and Mr. Brown will recap our third quarter financial results and we'll have Mr. Gaccio to talk about our recent developments since he joined and some other exciting business opportunities with our technology. Following these remarks, we'll 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 Holding's current views, and Remark Holding expressly disclaims any obligation to update or revise any forward-looking statements after the date hereof. This disclaimer is only a summary of remark holding statutory forward-looking statements disclaimer, which is included in full in this filing with the SEC. I will now turn the call over to Remarks Chairman and Chief Executive Officer, Mr. Tao, so he can provide additional color on Remarks businesses and recent developments. Ching.

Thank you for taking the time to listen to our third quarter update. as we have much to update on. In the third quarter, we've continued to execute on our plan to continue to build the foundation to scale our Remark AI platform globally. Starting here in the U.S., we won our first contract with a major top 10 sports and entertainment arena with more than 2.5 million annual visitors and attached to a major transportation hub with over 20 million visitors annually. Rob will go into further detail later, but we are confident this is a strong indicator of what is ahead of us, not just in the U.S., but globally. We have continued to expand our footprint in all things security related in the U.S. to airports, supermarkets, smart traffic, and more. In our world, three things need to happen. Number one, you need the technology. Number two, you need the customer base. And three, the customer base needs the funding. Up until recently, we've had points one and two covered. But with President Biden's $3 trillion infrastructure bill, we are now seeing point three covered. We are seeing an unprecedented opportunity to tap into the funding that has been released to build back and modernize the U.S. This is a once-in-a-lifetime opportunity, and we must grab it. Remark AI will leverage our critical position as a provider of solutions addressing public safety and security that the U.S. needs. Our strategic partnerships with video management system providers such as Genentech and Access provide both the validation and distribution for our award-winning artificial intelligence solutions to a new range of customers. This builds upon the solid foundation we have created putting us in the best position for success in the coming quarters. Moving across the Pacific, with the conclusion of the National Party Congress in China, we are optimistic that the stringent zero COVID policies will be loosened sometime in the next three to six months, which will allow us to continue to go back to full speed in our deployment with China Mobile and Bank of China's retail branches. Just to remind you, These are very large contracts, and it is a question of when, not if. Our other highlights in the third quarter for China, despite the stringent zero COVID policy. They include Remark AI smart campus solutions, which were deployed at more than 70 campuses in China. Bring our total installations to more than 530 campuses. And now we cover in excess over 1 million students. In addition, we recently launched our student evaluation system using our AI platform. And we will use that and sell on, we will sell that on top of our current safety projects. In the smart construction industry, we have now completed an initial 60 site installation project. And compared to the previous quarter, and we've now also completed an additional 19 installations I'm sorry, we completed 19 installations during the third quarter on top of what we initially have done. Our total installation is at 86 sites, and we continue to work towards the completion of our second 60-site project. Each initial construction project generates $100,000 in revenue initially and is expected to grow as China opens up. In the last quarter, I mentioned our positive momentum across the Atlantic and to the UK and continental Europe. We expect to have positive news to share over the next quarter, as we've been quite successful in taking our existing technology platform and expanding it there. Similar to the US, we have partnered up with large integrators and BMS companies to expand our footprint efficiently and effectively. Our areas of focus, like the US, are on large scale infrastructure projects primarily with tunnels and bridges. One example of a project in the UK is for a major crossing road with an average daily use of over 130,000 vehicles. Our analytics detect vehicle stoppage, speed, vehicle type, vehicle driving the wrong direction, people exiting their cars, delays, and unknown objects on the road. Again, we are very excited for the next couple quarters for our shareholders to see the good results that have come from over the last year, and we expect the momentum to grow as we announce and commence each project. Before I pass the call over to Rob to go over our U.S. business, I want to take a step back to talk about how we got here. We have never received private equity or venture capital like our competitors since we began to build our business. Having said that, we believe we have built a much stronger business as we've built our technology from the ground up. We are scaling to profitability as we are benefiting from deploying the technology developed over the past five years, but we are not there yet. Our ability to continue to finance our business operations is still dependent on our access to the capital markets and have always been dependent on the support and trust of our public shareholders. For such a reason, we are asking our shareholders to approve the reverse stock split described in our recently filed proxy statement so that we can preserve our NASDAQ listing and continue to raise equity capital to fund the massive options we are capturing in 2023. The initial projects we are winning in Q3 and Q4 of 2022 naturally convert into scalable, recurring annual subscription contracts, which requires an increased investment in hardware and software support. As one of the largest shareholders, I fully recognize and acknowledge the impact of shareholder dilution as it has hurt patient investors who have supported us the past five years while we have been developing our AI-powered smart safety platform. Though such dilution has also impacted management the most, we are confident the commercial deployment of our smart safety platform combined with the expected funding provided by the Biden infrastructure bill lays the groundwork for a strong return on investment, leading to future accretive cash flow and earnings. We therefore urge you to vote in favor of the reverse stock split proposal and the proposal to approve the potential issuance of 20% or more of our common stock pursuant to our convertible subordinated to venture and equity line of credit with Ionic Ventures. Each of which is described in our recently filed proxy statement. We remain available to discuss any of this with any of you, and thank you in advance for your continuing interest and support of Remark Holdings.