Minim, Inc.

Good morning, everyone, and welcome to the Minimum Reports fourth quarter and full year 2022 financial results conference call. All participants will be in a 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 and then one using a touch-tone telephone. To withdraw your questions, you may press star and two. Please also note today's event is being recorded. At this time, I'd like to turn the conference call over to James Carbonera, Investor Relations. Please go ahead.

Thank you. And once again, welcome to Minim's Q4 and full year 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. or 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 filed 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 measures is available in our most recent press release, as well as in periodic filings with the SEC. Now, I would like to turn the call over to Mahul Patel, CEO of Minim. Mahul, please proceed.

Thanks, James. Good morning, and welcome to Minim's Q4 and full-year 2022 conference call. At mid-year, we initiated a number of steps to advance our competitive position improve working capital management, and better align our business with realities of consumer markets. As a result, we exited 2022 with more robust e-commerce distribution channel and all intelligent product portfolio and improved balance sheet. Revenue for the year was $50.6 million, a decline of 9%. As challenging economic conditions persist and traditional retailers continue to work through high inventory, that they are stockpiled to combat supply chain risks. Fourth quarter revenue up about 1.4% year-over-year, down 23.2% sequentially to $10.6 million. Subsequently, year-end, we initiate additional cost reduction actions that we expect will generate annual cost savings of approximately 20%. split evenly between cost of goods sold and operating expenses. Through a series of actions that includes workforce reduction as well as reduction in professional services and other spend categories, we're better aligned to size and scale of our business with the realities of current market and economic environments. Importantly, we expect this will also accelerate our path to achieve a sustainable profitability on a adjusted EBITDA basis. Across the market, we continue to see consumer preference on online purchasing. We're maintaining our marketing position at Amazon with 40% market share in networking category. At the same time, we significantly expanded our e-commerce channel in 2022 with addition of HomeDepot.com, OfficeDepot.com, HSN, and Newegg, to name a few. Through the addition of these channels, we are reaching a wider audience and scaling our current product for offering with a large customer base. Core to our mission is our commitment to software-enabled intelligent mobile products. We are on schedule to complete the buy-down of our ISP business later this year as we shift our attention and resources to premium subscription services. The ISP business, which currently provides customers with unlimited free of charge support for purchases, has been a drag on our margins and cash flow. With the launch of Support Plus, our premium support subscription service, We will establish a new revenue stream, which we believe will have an incremental positive impact to our gross margin beginning near the end of Q3, and we head into Q4. Support Plus will be available to app users beginning in June. The subscription service offers a greatly enhanced end-to-end customer support experience. For our annual fee, users will have access to 24-7 tech support, priority queuing, and callback requests. Importantly, there are virtually no incremental cost to the services as investment in the technology sunk, and we are shifting resources internally from our ISP business to support this new offering. Beyond this initial launch, our technology roadmap includes additional features for rollout in the second half of 2023. Specifically, we plan to add network diagnostics and management, threat protection, and parental controls. These features address the top pain points for consumers and create a highly attractive bundle of solutions that gives consumers peace of mind and more control around their households. We remain vigilant in our efforts to strengthen our balance sheet. Since the end of the second quarter, we have reduced our inventory by 26% to $25.4 million. and reduced account payable by 75% to $2.8 million at end of Q4. We have achieved a maintenance level of account payable and AP turnover that is more adequately aligned with the size of our business. As expected, the actions we have taken to improve working capital efficiency resulted in lower cash balance at end of the year compared to prior quarter end. More importantly, though, our working capital ratio improved from 2.0 at the end of Q2 to 2.1 at the end of Q4. We expect a further reduction in inventory to low 20 million as we exit Q1 and head into Q2 of 2023. Earlier this month, we signed a non-binding term sheet for a three-year $12 million asset-backed credit facility with a new lender. The new credit facility is subject to execution of final definitive documents. We have agreed on business terms and legal terms are working through the final steps to be completed. The new agreement will replace our existing credit facility with Silicon Valley Bank. More importantly, though, this new agreement provides us additional borrowing capacity on a global basis and more favorable terms and reduces our overall financing risk. We expect to execute a final agreement soon. It's a great confidence that I tell you our balance sheet is in a much improved position than it was six months ago. Looking ahead to 2023, we remain focused on prudent allocation of capital, executing on our product roadmap to create a new revenue stream, and further expanding our distribution channel, particularly e-commerce channel. I will now turn to Dustin for a review of our financial results. Dustin?