The Singing Machine Company, Inc.

Good day, everyone, and welcome to today's Singing Machine Announces Third Quarter Earnings Call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question-and-answer session. You may register to ask questions at any time by pressing the star and 1 on your touch-tone phone. You may withdraw yourself from the queue by pressing the pound key. Please note this call may be recorded, and I will be standing by should you need any assistance. It is now my pleasure to turn the conference over to Brendan Hopkins. Please go ahead.

Thank you, Nikki. Thank you, everyone, for joining us today. We have a brief safe harbor, and then we'll get started. Except for historical information contained herein, the statements in this conference call are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results in future periods to differ materially from forecasted results. With that said, I would like to turn the call over to Gary Atkinson, CEO of The Singing Machine.

Thank you, Brendan. Good afternoon, everyone. My name is Gary Atkinson, Chief Executive Officer of The Singing Machine Company. I want to thank you all for taking the time to join our earnings call for our third quarter ended December 31st, 2021. Joining me on the call today is Lionel Marquis, Company CFO, and Bernardo Mello, VP of Global Sales and Marketing. I'd like to start the call today by saying I couldn't be more pleased with the results and the effort from the entire team during the 2021 year. As you are all aware, there were many, many supply chain challenges last year. In fact, it was the most disruptive year we have ever experienced from a supply chain perspective. So I'm particularly proud of these results given the shortage of containers and significant unexpected rise in freight costs that we encountered last year. semiconductor and component shortages that we faced during production, and significant port and trucking delays that we faced when we finally built our products and brought them into the States. So with that being said, I'm thrilled to say that despite all of those challenges, we successfully overcame all of those obstacles. During the third quarter, ended December 31st, we defended and expanded our retail presence, while driving revenue for the quarter up 25% to $21.2 million compared to the same quarter of the prior year. We successfully grew year-to-date revenue for the nine-month period by 6%, now up to $44.7 million. Income from operations for the quarter increased 13%, up to $1.7 million. In summary, we not only survived the supply chain challenges of last year, but we thrived. I also have some positive news to share regarding our new recurring music content business. Through our strategic key partnership with the Stingray Group, we continue to focus on the digital content subscription aspect of our business. Our recurring subscription business continues to accelerate with 25% increase in year-over-year subscription revenue across all platforms, including iOS, Android, and our proprietary integrated Wi-Fi product. In fact, the primary driver of growth came from the new Wi-Fi streaming product, which was carried in Costco and Sam's Club nationwide this last year. We saw digital subscriptions from that device grow 370% year over year. As we remain the number one brand at home karaoke with the largest and strongest distribution network, we believe we are well positioned to scale this subscription revenue business by focusing intently on converting our fleet of karaoke products into higher technology devices that support the recurring revenue model. We also continue to succeed at all major retailers nationwide, including Walmart, Target, Costco, Sam's Club, and Amazon, where we defended our market share and even saw opportunities to refill stores before the holidays due to our strong sell-through and demand. As we move into the new calendar year, we're already hard at work to secure more retail shelf space and add new technologies to our machines to better support the subscription business. We look forward to calendar 2022 and sharing these developments with you. Now I'll turn the call over to Lionel Marquis, who will talk through the third quarter numbers in more detail. Go ahead, Lionel.