Sadot Group Inc.

Good afternoon and welcome to the Sadat Group Inc., formerly known as Musclemaker Inc. Q2 2023 Earnings Release and Conference Call. Today's call is being recorded and all participants will be in listen-only mode. After management's prepared remarks, we will open the call to questions from analysts. At this time, for opening remarks and introductions, I would like to turn the call over to Frank Pogubila, Sadat Group Inc.' 's Investor Relations Contact.

Thank you operator and welcome everyone to Sadat Group Inc's second quarter 2023 earnings call and webcast. Before we get started, we would like to state that this call may include forward-looking statements pursuant to the safe harbor provisions of the US Private Security Litigation Reform Act of 1995. To the extent that the information presented on this call discusses financial projections, information, or expectation about business plans, results of operations, products, or markets, or otherwise make statements about future events, Such statements may be forward-looking. Such forward-looking statements can be identified by the use of the words such as should, may, intends, anticipates, believes, estimates, projects, forecasts, expects, plans, and proposes. Although management believes that the expectations reflected in these forward-looking statements are based on reasonable assumptions, there are a number of risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading Risk Factors and elsewhere in documents that the Sadat Group Inc. files from time to time with the SEC. Forward-looking statements speak only as of the date of the document in which they are contained, and Sadat Group Inc. does not undertake any duty to update any forward-looking statements except as may be required by law. For this call, All numbers disclosed have been rounded to the closest thousand and percentages have been rounded to the closest percent. On this call, we will refer to Sadat Group Inc. as Sadat Group or the company. With me on the call today are Sadat Group Inc.' 's Chief Executive Officer, Michael Roper, and Chief Financial Officer, Jennifer Black. Michael and Jennifer will be presenting prepared remarks related to Sadat Group's financials filed on August 9th, 2023. and those documents may be found on the company's website, Newswire feeds, and on the SEC's website linked from a Sadat Group IR pages at... At this point, I would like to turn the call over to Sadat Group Inc's CEO, Michael Roper.

Good afternoon, everyone, and thank you for joining us today. I'm pleased and proud to report that Q2 was a strong continuation of the past two quarters, highlighted with Q2 being our first ever profitable quarter in the company's history. Let me say that again, highlighted with Q2 being our first ever profitable quarter in the company's history. But before diving into our second quarter results and key achievements, on July 26, 2023, we made the exciting announcement that MuscleMaker, Inc., has taken a significant step in its journey of becoming a key player in the global food supply chain by deciding to change the company's name to Sadat Group Inc. This name change recognizes the company's evolution of our core business and aligns with our strategic vision as we transform into a truly global agri-food supply chain organization that's focused on sourcing and providing sustainable foods and feeds. The company's common stock began trading on NASDAQ under the ticker symbol SDOT. That's S as in Sam, D as in David, O as in Ocean, T as in Tom. SDOT, Sadat, on Thursday, July 27, 2023. And we could not be prouder. It's been an extremely busy time for our organization over the past quarter and really over the last eight months since our corporate strategic pivot. As you may recall, in late 2022, we began the transformation from a US-centric restaurant business. And fast forward to today, we've rapidly evolved into a truly global food supply chain organization. I'd like to begin with a brief overview of our rapidly evolving company. As we expand into new verticals within the global food supply chain sector, we have strategically segmented our business into three operating units. Our first business unit is Sadat LLC, which we will refer to as Sadat Agri Foods. Its global operations include the origination and trading of food and feed products such as soybean meal, wheat, and corn. Our second business unit is our Sadat Farm Operations. Pending final government approval, we will close on an approximately 5,000-acre farm in Zambia. The farm produces the same commodities that are in constant demand, soybean, wheat, and corn, along with avocado and mango. We've started initial operations through a right-to-use notice and expect to receive final approval on the purchase later this month. Our third business unit is Sadat Food Service Operations, which operates our three restaurant concepts. This unit encompasses over 47 fast casual restaurants. As we'll detail later on the call, we've already started reaping the financial benefits of our global diversification strategy, which exemplifies our strategic approach to expanding into each of our three main business units. Now let me discuss some Q2 highlights. I'm pleased to announce that Sadat Group, Inc. achieved top line revenue of $160 million for Q2 2023, a significant increase compared to $3 million for Q2 2022. This revenue announcement marks the accomplishment of eight consecutive months above $45 million in revenue per month for our Sadat AgriFoods business unit and demonstrates our continued overall performance. with total revenues of over $515 million since November 2022, when we began our strategic pivot into the global food supply chain sector. Overall, our second quarter net income was $190,000 in 2023 compared to an approximate $1.8 million net loss in the second quarter of 22. As previously noted, this was the company's first profitable quarter in our history. The $2 million increase in net income is primarily attributable to Sadat Agri Foods as we continue to execute against our business plan. We see Q2's results along with other strategic actions as a foundation for our future growth and diversification within the global food supply chain. I would like to specifically highlight and review our updated working relationship with AGIA LLC FZ, who I will refer to as AGIA. As disclosed in an 8K filing on November 18, 2022, Sadat AgriFoods entered into a service agreement engaging AGIA to perform services related to the purchase and sale of physical food commodities. The service agreement allowed AGIA to nominate up to eight board members, one upon signing the service agreement, and an additional seven nominations upon Sadat AgriFoods generating specific net income targets, two at $3.3 million, two more at $6.6 million, and the final three at $9.9 million. Since its inception and through June 30, 2023, Sadat AgriFoods has generated over $11.3 million in net income for Sadat Group per U.S. GAAP. As our agri-foods unit easily surpassed the third and final threshold of $9.9 million in net income, Agia nominated and Sadat Group accepted three new board directors, Mark McKinney, David Errington, and Dr. Ahmed Khan. These new board directors bring industry-specific knowledge and a wealth of experience to the company. With the addition of these three board members, Sadat Group has added all eight AGIA-nominated board directors, as per the terms of our agreement, which brings the total number of board members to 15. I invite you to read the bios of our directors on our website, sadatgroupinc.com. In addition, in the second quarter, we announced that the company amended the original services agreement with Agya. The new amendment modifies the formula by which Sadat Group would issue shares of common stock earned by Agya for net income generated through our agri-foods unit from 80% of net income to 40% of net income on an accounting basis. as a result the quarterly non-cash expense related to stock issuances to agia was reduced by 50 percent following the amendment all shares to be earned by agia under the agreement have been issued and will retain voting rights vesting over time using the 40 of net income formula we believe the agreement with agia to be an intelligent and accretive investment in the strategic future of our company We are confident that agia will continue to provide valuable insight and expertise, as we grow our global food organization. We are committed to the execution of our strategic vision and to capitalize on the opportunities presented by the global food market. So that group success this quarter is a testament to the hard work and dedication of our team and we look forward to building on this momentum, as we move forward. Now I'd like to turn the call over to our CFO, Jennifer Black, to review the financial performance of the company for the second quarter of 2023. Jennifer?