Vsblty Groupe Technologis

Good morning, ladies and gentlemen, and welcome to Visibility's third quarter 2022 earnings call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. I would now like to turn the conference over to Mr. Jonathan Patterson. Please go ahead, sir.

Thank you, Laura. Good morning and welcome everyone to Visibility's quarterly conference call. This call will cover Visibility's financial and operating results for the third quarter ended September 30th, 2022. Following our prepared remarks, we will open the conference call to a question and answer session. Our call today will be led by Visibility's President and Chief Executive Officer Jay Hutton, along with the company's Chief Financial Officer Mitch Codkind. Before we begin our formal remarks, I would like to remind everyone that some of the statements on this conference call may be forward-looking statements. Forward-looking statements may include but are not necessarily limited to financial projections or other statements of the company's plans, objectives, expectations, or intentions. These matters involve certain risks and uncertainties. The company's actual results may differ significantly from those projected or suggested. and any forward-looking statements due to a variety of factors which are discussed in detail in our regulatory filings. A copy of today's presentation will be available in the investor relations section of our website, www.visibility.net, and posted on CDAR. I will now turn the call over to the Chief Financial Officer of Visibility, Mitch Codkind. Please go ahead, Mitch.

Thank you, Jonathan. just to remind everyone once again uh all dollars that i uh talk about today are in us dollars so with that said our revenues for q3 came in at approximately 800 000 which is up 53 percent over our prior year third quarter for the first nine months of 2022 our revenue is now at 5.3 million and it's 459 percent over the first nine months of last year it is worth pointing out that in Q3, we sold and delivered 77 units of our digitized cooler door systems, our largest deployment to date, to important customers such as Coca-Cola Bottling and Mountain Express Oil, a U.S.-based convenience store chain. And we did this through our partner network. These patent-protected cooler door systems represent an important part of driving our software-as-a-service and our store-as-a-medium advertising program. Cracking the sales of these cooler systems, which have an average selling price of $4,500, will be a key metric in the years ahead. For each 100 units sold and deployed, we anticipate driving $114,000 in licensing or SaaS revenues and advertising revenues of $4.8 million over a five-year period. I'm gonna switch now to cost of goods sold. Within our cost of goods sold includes, there are two buckets. There are the units cost tied to the delivery of product, as well as our cloud infrastructure cost, our strong analytics capability, and our field deployment model with an overarching goal to transfer the necessary knowledge of our solution set to our various partners, some of which have a global footprint. Investments in our cloud analytics and deployment capabilities are a prerequisite to scaling our revenues in the quarters and years ahead. For now, this investment, which totals $900,000 year to date, has resulted in a negative margin both for the quarter and year to date. These costs are relatively fixed, and as we scale our revenues, we will see significant margin expansion. I also want to point out that if you want to learn more about our strong analytics capability, I would refer you to our November 23 press release about the recognition we're receiving around our data analytics capabilities, a very important competitive differentiation. For the quarter, we had an operating loss of $2.9 million, and this is down from the prior year loss of $3.7 million. For the nine-month period, Our operating loss was 7.8 million, and this is down from the 10.8 million reported for the first nine months of 2021. The company maintains a bookings backlog based on several material contracts executed over the past year, which totals $50 million in total contract value. Most of these contracts range from 36 to 48 months, and the revenue is expected to be recognized over this period of time. At the close of Q3, we had our accounts receivable were $3 million, with the largest portion due from our joint venture partner, the Latin American-based Winkle Media. In addition, Visibility has provided $1.6 million in funding to Winkle Media as of September 30, 2022, as part of its ongoing obligations as a joint venture partner. The company anticipates the need for further funding to Winkle Media until profitability is achieved in the first half of 2023. During the quarter, the company successfully completed both a public and private unit offering that netted the organization $6.5 million of proceeds. With the closing of our third tranche of the private placement that was completed following the end of the third quarter, the total funds received increased to $6.9 million. We ended the third quarter with a cash balance of $3.8 million. I will now hand over to Jay for additional comments.