Mphase Techs Inc

Greetings. Welcome to MFACE Technologies Earnings Conference Call. At this time, all participants are in listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during today's conference, please press star zero from your telephone keypad. Please note, this conference is being recorded. At this time, I'll now turn the conference over to Brian Prendevo. Please go ahead, Brian.

Thank you. Good afternoon, everyone, and welcome to M-Phase Technology's fiscal 2022 second quarter earnings conference call. As a reminder, the fiscal 2022 second quarter ended on December 31st, 2021, so all figures presented for this period will reflect that end date. Today, we issued our fiscal 2022 Q2 financial results press release, which highlighted a number of financial results for the quarter. A copy of the press release is available on the investor relations section of our website, and the completed financials are posted on EDGAR. Before beginning our formal remarks, I'd like to remind listeners that today's discussion may contain forward-looking statements that reflect management's current views with respect to future events. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these forward-looking statements. M-Phase does not undertake to update any forward-looking statements, except as required. At this point, I'm pleased to turn the call over to MFA's CEO, Anshu Bhatnagar. Please go ahead, Anshu.

Thank you, Brian. On behalf of the entire Empower team, a warm welcome to everyone who's joining us today. We'll get to some highlights for the quarter shortly, but I want to start with a slide showing our much-improved and expanded management teams. Building out our team has been a major focus over the last few quarters, and we now have the personnel on board to support our growth objectives during our EV charging installation stage. This was a thoughtful process as we are now staffed with industry experts in key areas such as renewable energy, automotive, and real estate that will be most important to building out our EV charging platform. Last quarter, We added a full-time CFO, Anjaliya Gratishan. And most recently, we added General Counsel and Corporate Secretary, Isida Touche, and Head of Sales, Soni Thakur. I invite everyone to spend some time on LinkedIn looking at the outstanding credentials of our entire team to see what a deep bench of talent we now have in place. Two key attributes of a successful company are are the business model and the people executing that model. At this point in our revenue cycle, we have more than proven that our business model works. We're building all our revenue streams from scratch, and we have a considerable amount of R&D and infrastructure costs, and we have still managed to be profitable or near break-even most quarters backing out non-cast charges since we commenced generating meaningful revenue. In Q2, we marked our 11th straight quarter of year-over-year revenue growth. So we are one quarter away from three straight years of maintaining that record. I don't intend to steal too much from Angelia as part of the call, but this rock-solid consistency is the foundation of our approach to our next growth driver, which is to roll out the world's first true EV charging ecosystem. We previously announced a corporate name change from M-Phase Technologies to M-Power Technologies. This is still on tap, but quite a bit slower getting through regulators than we anticipated. As for our corporate rebranding, we are now using a purple color theme and a distinct M-Power logo that will differentiate us in the marketplace. The accompanying slide shows the look of our Level 2 chargers with this rebranding in place. In terms of equipment, we are sourcing our chargers from multiple leading OEMs and have engaged with nationally recognized engineering, installation, and maintenance organizations to provide the necessary infrastructure role for our network of chargers. We are using charger OEMs that are familiar names in the industry, so our devices will be manufactured by the same companies supplying many of our competitors. Our value add is our software and platform, so this is an ideal situation where our hardware will be readily accepted wherever we go. We recently started our site work for our first charging location. Our goal is to have those first locations in place during the next quarter, completing a major milestone. This first set of installations will also mark our entry into the hotel vertical, giving us another definitive use case as we pursue additional business in the lodging industry. This is a very important development for us because hotel properties can handle large installations. And in this case, we'll be putting eight chargers per site. Our expansion plan is flexible and national in scope. We have multiple tracks targeting owner operator networks of food and fuel franchises, corporate retail chains, hotel and motels, and partnership opportunities with municipalities, government agencies, and utilities. Our other important track involves landowners, such as mall and strip mall operators, which tend to overlap some of the owner-operator clients who have locations in those types of properties. The beauty of our model is that we can put a pin in any part of North America that has the best near-term potential because we're building an ecosystem that blends non-charging and charging sites into a cohesive network. This is a major differentiator because it gives us the ability to place chargers in locations that might not be economical to other companies who rely solely on charging revenue or service fees to fund their business. For those of you who are new to our story, this slide shows a bird's eye view of our Empower ecosystem which seeks to monetize more points of contacts during day-to-day travel than any other EV charging company. All of our member sites get our consumer engagement software which enables them to target all consumers who download our app. Our software does the hard work for stores essentially directing the most likely customers to their locations in response to specific offers. When you add it all together every B2C Empower consumer has a circle of opportunity that travels with them enhancing their ability to get great goods and services that they want at the right time and place. Similarly Our retailer members seeking customers get access to a much larger pool of target customers, some of whom might be just randomly traveling near member locations. Our approach to EV charging is fundamentally different than other companies in the space. If you consider how early in the EV adoption timeline this industry is at, Roughly 3% of vehicle sales in the U.S. as of early 2022, it is important to understand that the problem of today will be fundamentally different than the industry needs out 2, 5, and 10 years from now. As this chart shows, most EV charging companies have some kind of differentiator, such as solar or advertising attached to their charging installation, but we are the only company with a consumer software stack. Anyone who has owned an EV in these formative years has lived through the modern equivalent of ancient traveler timing, the distance between each oasis. The Camel may have been switched out for a Tesla, but clearly the industry needs to put a lot more charging stations to solve range anxiety. And we intend to be part of that solution. But what happens when... the scarcity wanes and the charging landscape begins to fill in. And secondarily, what happens to the millions of businesses connected to travel-connected commerce who are facing an uncertain future from a sea change in fueling process? And then there's the quality of sites, with some devoid of any creature comforts. The very concept of fuel itself is even changing. as electricity has no real branding power. Early on, we took the approach that an ecosystem could function across all of these timeframes and work for more people than a hardware-based solution that simply draws a line between the two most obvious points, the charging station and the driver's seat. We describe our approach as EV+, which is a term synonymous with our mPower platform's ability to connect more entities into these cohesive networks. We decided to design an ecosystem that touches every possible point in the future EV landscape, including drivers who will not own an EV for many years. In that sense, We have started where EV charging will need to be when the industry matures and then work backwards to today. We were able to do that because we already had the travel and consumer engagement software and platforms developed and tested, representing years of development effort. When we put in our first chargers in the next quarter, we will be the only company to successfully close that loop with the future via complete ecosystems. That will put us years ahead of other charging companies in terms of a solution that serves consumers, EV manufacturers and EV owners, travel-oriented retailers, and green product companies simultaneously. If you're wondering how we even got into this space, the truth is the EV industry came to us. Based on our long history as a battery development company, many different kinds of EV companies began showing up at our door seeking partnerships, giving us an impressive cross-section of industry exposure and knowledge. When we layered our existing travel platform and consumer engagement software onto the problems we were hearing, we realized that our version of the ecosystem could satisfy the pending and current needs of more people than any other charging solution in the market today. Beginning in what is now our third quarter of fiscal 2022, we are moving into execution phase of our ambitious plan to build the world's first complete EV charging ecosystem. So the next few quarters are going to be some of the most exciting in our company history. At this point, I would like to turn the call over to our CFO, Angelia Grotyshyn, who will provide a detailed analysis of our Q2 results and the positive impact of some important subsequent action since the quarter's end.