Minim, Inc.

Good morning, and welcome to the Minim third quarter 2022 financial results conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touch-tone phone. To withdraw your question, please press star, then two. Please note, this event is being recorded. I would now like to turn the conference over to James Carbonara of Investor Relations. Please go ahead.

Thank you. Welcome to Minim's Q3 2022 earnings call. With me on the call are Mahul Patel, Chief Executive Officer, and Dustin Tacker, Chief Financial Officer. As a reminder, all materials for today's live presentation are available on the company's Investor Relations website at ir.minim.com. Before we begin, I want to remind everyone that today's conference call may contain forward looking statements. Forward looking statements include statements regarding the future, including expected revenue, operating margins, expenses, and future business outlook. Actual results or trends could materially differ from those contemplated by these forward looking statements. For a discussion of such risks and uncertainties, which could cause actual results to differ from those expressed or implied in the forward looking statements, please see risk factors detailed in the company's annual report on Form 10-K, contained in subsequent file reports on Form 10-Q, as well as in other reports that the company files from time to time with the Securities and Exchange Commission. Please note, too, that today's call may include the use of non-GAAP numbers that management utilizes to analyze the company's performance. A reconciliation of such non-GAAP numbers to the most comparable GAAP measure is available in our most recent press release, as well as in our periodic filings with the SEC. Now I would like to turn the call over to Mahul Patel, CEO of Minim. Mahul, please proceed.

Good morning and welcome to Minim's Q3 2022 conference call. Our third quarter revenue was $13.8 million, up 8% compared to Q2 of 2022. Revenue was boosted by Amazon Prime Day in July, which was up 53% from prior year Prime Day and continued success with our e-commerce channels. We started off Q4 with October Amazon Prime Day. Our gross sales for this event were approximately 50% of our Prime Day performance from July. Our performance for this event was consistent with other retailers, although lighter than we had hoped, as consumer appears to be delaying purchases ahead of a more traditional start to the holiday shopping season in November. According to Amazon, over 100 million products were sold during its October Prime early access sale. but this was down compared to summer prime days when three times more items were sold between July 12th and July 13th. Across the markets, we continue to see consumer preference for online purchasing despite inflation concerns and retailers' best efforts to jumpstart the holiday shopping season in October. Pricing remains aggressive across our product categories as competitors seek to turn inventory. Regarding our cash and inventory positions, We continue to execute our plans to reduce inventory levels by purchasing a small selection of products and focusing our program to recover return items rather than purchase new ones. We ended Q3 with $30.3 million in inventory, down from $34.3 million at end of Q2. And importantly, we carried that momentum into fourth quarter. We expect to reduce inventories to a range of $25 million to $27 million as we exit 2022 and reduce even further to low 20s as we exit Q1 into Q2. Our cash balance as of end of the quarter was $1.9 million. Cash was used during the quarter primarily to reduce accounts payable by nearly 40% from $11.4 million at end of the second quarter to $6.9 million as of end of the third quarter. We ended the quarter with outstanding debt of $5.8 million, which was a drawdown of our company's $25 million line of credit. This compares to 5.6M in outstanding debt as of June 30th, 2022. As of September 30th, 2022, we have half a million dollars in availability of the credit line. As we continue to reduce inventories and convert them to cash, we anticipate further reducing our accounts table to a balance maintenance level in 4 to 5 million dollar range by end of 2022. Heading into the year end, we expect our cash balance to be plus or minus half a million dollars from September ending cash balance. Our commitment to software-enabled intelligent mobile product continues. We're advancing our product roadmap on a consumer side of the business to develop a full stack of software offerings that will enable us to compete more effectively in industry and launch new streams of revenue and cash flow. Our plan includes offering for premium support, network diagnostics and management, threat protection, and parental controls. Congruent with the strategy, we recently announced the wind down of our ISP business, which currently provides customers with unlimited and free of charge support for purchases. We plan to fully exit this business by November of 2023. Lastly, our mobile app is now paired to all our products, a key factor for accelerating our growth. Subsequent to quarter end, we announced further expansion of our e-commerce footprint to include Lenovo.com. Lenovo now offers its customers the ability to pair Motorola home networking products with its low-cost PCs to achieve outstanding performance. The offering on Lenovo.com will include our child performers that feature cutting-edge technologies such as DOCSIS 3.1 and Wi-Fi 6. Furthermore, we recently signed agreements with Office Depot, Staples, and Newegg that provide further growth in our e-commerce channel starting in Q4. We're also in advanced discussion for opportunities to showcase our products across entertainment channels and placements with larger home improvement retailers. We successfully launched our new mesh products, the Motorola Q11 and Motorola Q14, first Wi-Fi 6E products as planned in third quarter of 2022. Both products come bundled with our MotoSync app and sell at a higher price point, which will help raise our average selling price. We will recognize the finalists in outstanding use case Customer Experience Category of the 2022 Leading Lights, the Global Communication Industry Award Program run by Light Reading. The Light Reading Award recognizes industry's top companies and their executives for their outstanding achievements in next-generation communication technology, applications, services, and strategies and innovations. Minimum selected from hundreds of high-quality entries. Funnels are expected to be announced next week. Looking ahead, we are focused on prudent allocation of capital, executing on our product roadmap to create new revenue streams and expanding our distribution channels. No doubt the macro environment of our industry is challenging, but I'm confident in our strategy and the team to execute it. Now I'll turn to Dustin for review of our financial results. Dustin?