Ryvyl Inc.

Good afternoon, ladies and gentlemen, and welcome to the Rival Third Quarter 2022 Earnings Conference Call. During today's presentation, all parties will be in a listen-only mode. Following management remarks, the conference will be open to questions. The earnings press release accompanying this conference call was issued at the close of the market today. The quarterly report, which includes the company's results of operations for the three months ended September 30, 2022, was filed with the SEC today. On our call today are Rival Chairman Ben Arez, Chief Financial Officer Drew Bielik, and Chief Operating Officer Min Wei. I'd like to remind everyone the statements made on today's call and webcast, including those regarding future financial results and industry prospects, are forward-looking and may be subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the call. please refer to the company's regulatory filings for a list of associated risks. The replay of this call and webcast will be available for the next 90 days on the company's website under the events section. At this time, I'd like to turn the call over to Ben Arez, the company's chairman. Ben, the floor is yours.

Hello, and thank you for joining our third quarter 2022 financial results conference call.

It is time of tremendous momentum and I'm delighted to share an update during this, our first earning call as Rival. Earlier this year in our CEO letter, we noted that 2022 would be a year of repositioning for our company as we look to put in place the infrastructure necessary to disrupt the traditional financial payment landscape. Today, I couldn't be more pleased to report to you our significant progress towards that transition and the key achievements we have accomplished during the third quarter. To begin, the core metric that we focus on at Rival is the growth of our processing volume. In the third quarter, we once again set a quarterly record processing volume of nearly $1.3 billion. For the first nine months of 2022, we processed nearly double the transaction volume compared to the same period in 2021 highlighting our technology's potential, scalability, and incredibly successful internal sales and marketing team, driving the adoption of our leading-edge blockchain financial solutions. To note, this also represents an approximate 30% increase from the second quarter of 2022, an indication of our remarkable growth even during a challenging macro environment. Given the remarkable growth we've seen in the past two years with the continued advancement of our technology and payment solution, the forming of new partnerships, expanding geographically, and the hiring of key personnel, we knew the time was right for the evolution of our brand and identity. To that end, at our recent annual general meeting, we received resounding shareholder approvals. to rename the company Rival. This initiative was spearheaded by our chief marketing officer, Jacqueline Reynolds, who worked tirelessly to deliver on high expectations to create a world-class brand that we believe is unparalleled in the fintech industry. This process is vital to the next phase of our expansion as Rival showcases the continued development of our payment solutions. remarkable stablecoins, and blockchain processes and offerings to a global audience that we have already begun to pursue aggressively. You can expect the launch of our new rival website, along with the new social media platform and heavy public relations activities, and with a number of other launch activities as we strive to drive awareness in the weeks ahead. Shifting gears now to the Territorial Bank of America, Samoa, Kibas. You may recall that in our second quarter commentary, we discussed a significant traction made with 13% market share as the island's exclusive payment technology provider. Now, at the end of the third quarter, we are ecstatic to report that we have achieved nearly 50% market share. This is extremely significant for the island territory as they look to modernize their economy with our innovative stablecoin and blockchain-based payment solution. These cashless payment solutions reduce costs, improve settlement times, and introduce new level of security for the residents of the island. The surge in market share over the short time since the deployment of our technology not only demonstrates the focus and diligence of our team, but also the appetite of developing economies for adopting our unique technology as a reliable and trusted solution. Our close-loop rival ecosystem in American Samoa will serve as an ideal case study for our solution and pave the way to take advantage of opportunities around the world. This leads me to another keynote achievement during the third quarter that we expect to be a transformational growth driver for Rival. October marked the launch of Coiny, our USB-pegged stablecoin, which is available for download on Google Play and the Apple App Store. Businesses and individuals alike can now enjoy the speed and security of blockchain payment transactions, along with the stability of the US dollar, from the palm of their hands and on their desktop. One of the most significant points of distinction is that Koine became one of the industry's few to ensure near real-time custodial account attestation via a lengthy review of IT compliance and specifically SOC 2 compliance certification from Armonino, a top accounting, consulting and technology firm in the US. Now, what does that mean? Each COINI digital token held in a wallet on the platform is matched with one US dollar held in a custodial account with a federally insured financial institution. The dollars backing COINI are not tied up in investments and are not converted to other cryptocurrencies. Competing stablecoins that have not utilized these safety and compliance measures have failed. leading to severe market disruptions. Speaking of this and the heightened attention to company balance sheet and cash flow in the current market environment, Rival took the initiative to renegotiate and restructure the terms of our 100 million convertible note financing, which we originally entered into on November 2nd, 2021. Through cooperation with our note holders, we were able to come to terms to extend the maturity by one year to November of 2024, while also securing a highly valuable option to pay interest in stock, therefore reducing the cash interest expense burden and providing a significant improvement to our financials. Additionally, and again, in the context of today's market environment, I'd like to discuss our growth strategy. Historically, we have looked to grow organically and with select acquisitions to accumulate processing volumes, such as Chalk Savvy, Sky Financial, and key licensing assets like Transact Europe. In contrast, given the soaring cost of capital, raising funds to pursue acquisition no longer is as much of a focus. With the launch of Koini, our truly differentiated stable coin, our new brand identity, and increased global capabilities, we believe the best path to continue to quickly scale is through relationships with well-established payment companies that benefit from our advanced infrastructure and technology. In addition, we will continue to pursue select M&A strategies suitable for the current market conditions. As we continue to evolve our growth strategy, we will report more of the details of this shift. With this, I'd like to introduce Drew Bilek, our new Chief Financial Officer, whom we brought on board in the third quarter of 2022. Drew brings a tremendous depth and breadth of functional and industry experience with startup and middle market global software, technology, and other industries. We're truly thrilled to have his incredible experience on the team. Welcome, Drew. Please take a moment to walk us through the details of our financial results.