MIND Technology, Inc.

Operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Zach Vaughan. Thank you. You may begin.

Thank you, Operator. Good morning, and welcome to the MIND Technology Fiscal 2025 Second Quarter Earnings Conference Call. We appreciate all of you joining us today. With me are Rob Capps, President and Chief Executive Officer, and Mark Cox, Vice President and Chief Financial Officer. Before I turn the call over to Rob, I have a few items to cover. If you would like to listen to a replay of today's call, it will be available for 90 days via webcast by going to the investor relations section of the company's website at mind-technology.com or via a recorded instant replay until September 19th. Information on how to access the replay was provided in yesterday's earnings release. Information reported on this call speaks only as of today, Thursday, September 12th, 2024, and therefore you're advised that time-sensitive information may no longer be accurate as of the time of any replay listening or transcript reading. Before we begin, let me remind you that certain statements made by management during this call may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and include known and unknown risks, uncertainties, and other factors, many of which the company is unable to predict or control. that may cause the company's actual future results or performance to materially differ from any future results or performance expressed or implied by those statements. These risks and uncertainties include the risk factors disclosed by the company from time to time in its filings with the SEC, including in its annual report on Form 10-K for the year ended January 31st, 2024. Furthermore, as we start this call, please also refer to the statement regarding forward-looking statements incorporated in our press release issued yesterday And please note that the contents of our conference call this morning are covered by these statements. Now I would like to turn the call over to Rob Capps.

Okay, thanks, Zach. And thanks for all of you joining us today. First of all, I want to welcome all of our new common stockholders. With the conversion of our preferred stock in the common stock last week, mine now has a substantial new group of common stockholders. For many, if not most of you, mine is a new company. This new capital structure and our encouraging business environment provide MIND with important opportunities. Today, I'll discuss some highlights from the quarter. Mark will then provide a more detailed update on our financials. And I'll return to wrap things up with some remarks about our outlook. MIND delivered positive results in the second quarter that were in line with our expectations and further demonstrated the progress we've made on several fronts. We continue to operate efficiently and actively manage cost. We generated positive cash flow from operations in the quarter, which helped further improve liquidity. Our ability to build on the momentum we've generated in recent periods and execute has enabled mine to deliver another quarter of positive adjusted EBITDA and profitability. We remain well positioned to achieve profitability in favor of our results in future periods, and we maintain our belief the mine is strategically positioned for both near and long-term growth. While it did not directly impact second quarter results, the approval of our preferred stock proposal and the resulting conversion of all preferred stock into common stock was a very important development. On the conversion, we issued approximately 6.6 million shares of common stock, now have about 8 million shares outstanding. All outstanding preferred stock, along with associated accrued but undeclared dividends, have been retired. Mark will touch on the accounting for this conversion, which you'll see in the third quarter. We entered the third quarter with a strong backlog of approximately $26 million. I know that some of you have been concerned that there have not been more announcements of new orders recently. Although the order flow is often sporadic, it's not uncommon to see pauses in order activity throughout the year, especially during the summer. The backlog at the end of the quarter was down sequentially, however, it was more than 50% higher than at the same time last year, which is quite high by historical standards. We don't announce each and every order we receive. Currently, there are more than $6 million in orders that have been received subsequent to July 31st or that we believe are imminent, and those are not included in the reported backlog. Beyond that, we have an active pipeline of pending orders and prospects that is well in excess of our backlog of received orders. We believe this robust backlog and the many other opportunities we are pursuing bode well for favorable future financial results. As is always the case, the timing of certain orders is subject to variability due to any number of challenges, unforeseen circumstances, or customer delivery requirements. Our gun link source controllers, movie link positioning systems, and ceiling streamer systems are all contributing to our strong backlog. We currently have a number of pending orders across these product lines. I'm confident that the favorable macro environment, our narrow focus, strong customer relationships, ever-increasing capabilities, and valued partnerships will continue to seem at mind as the partner of choice for companies looking to acquire high-quality and versatile marine technology products. Our marine technology products revenues for the second quarter of fiscal 2025 were $10 million. Our ability to grow revenue both sequentially and year-over-year demonstrates the strength in customer engagement and order flow, favorable macro tailwinds, and the emphasis we put on execution and efficiency. We also continue to take steps to improve our cost structure, which has enhanced our profitability in the recent quarters. Now, it's always important to mention While supply chain issues are much improved, they're still with us to varying degrees and could impact results in future periods. These challenges are simply a component of doing business and we will almost certainly encounter them again in the future. To combat some of these challenges, we've built inventory in recent months to accommodate pending and upcoming orders. Additionally, as we've noted, The magnitude of our backlog and expected orders does give us better visibility and therefore better ability to manage our procurement processes and improve margins. We continue to believe that the current market environment is an advantageous remind. Our key markets remain loaded with opportunity. We're seeing an uptick in customer inquiries and RFQs as we come out of the summer months. In addition to now operating a more streamlined and focused suite of products, our team continues to develop new and innovative ways to adapt and implement our technologies to meet the evolving needs of our customers. Recent sales and inquiries regarding our ultra-high resolution ceiling streamer systems are a good example of this. I'm confident that our differentiated approach and best-in-class suite products will continue to give us the competitive advantage to address the growing demand we're seeing within the marine technology industry. Our repair activities both for our own products as well as third-party products, continue to develop and look promising for the future. We continue to see traction for our Spectral AI software suite through our collaboration agreement with General Oceans. We believe there are a number of promising prospects. Recent customer feedback for this software has been positive, and we hope to find further applications for this technology in the future. Now, I'll let Mark walk you through the second quarter financial results in a bit more detail.