OverActive Media Corp.

Good day, everyone, and welcome to Overactive Media's second quarter 2022 conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow management's remarks. This conference call has been recorded, and a replay of today's call will be available on the Investor Relations section of Overactive Media's website and will remain posted there for the next 30 days. I will now hand the call over to Mr. Babak Pedram, Investor Relations for Overactive Media, for introductions and a reading of the safe harbor statement. Please go ahead, sir.

Thank you, and good morning, everyone. Welcome to Overactive Media's second quarter 2022 earnings conference call. A copy of the company's earnings press release is available on the Investor Relations section of our website, overactivemedia.com. With us on today's call are Chris Overholtz, Overactive Media's President and Chief Executive Officer, and Rakesh Shah, Chief Financial Officer. Today, we'll review the highlights and financial results for the second quarter of 2022, as well as recent developments. Please note that unless otherwise specified, all amounts mentioned on today's call are in Canadian dollars. Before we begin, I will read our cautionary note regarding forward-looking information. Certain information to be discussed during this call contains forward-looking statements within the meaning of applicable security laws, including, among others, statements concerning the company's 2022 objectives, the company's strategy to achieve those objectives, as well as statements which respect management's beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance, or expectations that are not historical facts. Such overlooking statements reflect management's current needs and are based on information currently available to management and is subject to several significant risks and uncertainties that could cause actual results to differ materially from those anticipated. Also, our commentary today will include adjusted financial measures, which are non-GAAP measures. These should be considered as a supplement to and not as a substitute for GAAP financial measures. Reconciliations between the two can be found in our management discussion and analysis which is available on CDAR.com and our website. At this time, it is my pleasure to introduce Chris Overholt, President and CEO of Overactive Media. Chris, please go ahead.

Thanks, Patrick. Good morning, everyone. I understand it's a busy day for conference calls, so thanks for taking the time to join us today as we share our second quarter 2022 earnings report. As I speak to you this morning, I can say with confidence that we are executing our plan for the fiscal year 2022 with precision. and as we predicted. Our sponsorship business remains strong. Our leads and teams are progressing nicely within the season, and we continue to enjoy the momentum we witnessed as we wrapped up 2021. The value opportunity around the strong and scalable business that we are building is showcased through both our results and by the year-over-year growth of the industry and the third-party validation of the tremendous growth in our franchise assets. Most recently, it's worth touching on some notable transactions that do just that. Esports organization Misfits Gaming Group announced the sale of its League of Legends European Championship or LEC franchise slot to Team Heretics at a reported value of $55 million Canadian. The deal marks the second sale of an LEC slot following CBDS's acquisition of an LEC franchise slot from Chaco for a reported $39 million in 2021. Overactive Media acquired an LEC franchise in 2019 that operates under the Matt Lyons brand for $12 million Canadian. Additionally, Faith Clan, an esports and content creation collective, began trading on the NASDAQ via SPAC, or Special Purpose Acquisition Company, in the quarter of evaluation, now north of a billion dollars U.S. By our calculations, Faith Clan looks to be approximately two to two and a half times larger than Overactive on a revenue basis, and went public at evaluation roughly 20 times greater than our current market cap on the TSX Venture Exchange. We think this is a comparable and bearish monitor. As the catch will share in more detail in a moment, our business continues to see positive momentum coming out of Q2. Our expenses and net loss were higher in the current quarter, driven in part by our investment in hosting the first ever Call of Duty Major in Toronto in June. While our year-over-year business operations revenue growth of 52% further supports the momentum we are seeing, positioning the company well for the back half of the year. This growth was driven primarily by our strategic marketing sponsorship business. In particular, significant partnership renewals with Bell and TD Bank Group signal sustained confidence and belief in all that we're working towards. Bell is Canada's largest communications company and a key strategic investor in Overactive. A partner of ours since 2019, they signed on for an additional three years. Meanwhile, TD is the official bank of Overactive and our two Canadian professional esports teams, Toronto Ultra and Toronto Defiant. And they extended their multi-year, multi-million dollar sponsorship for an additional five years. Both of these long-term commitments to our business provided us with the opportunities for premium experience to esports fans across Canada. With regard to our team's business, we remain focused on talent identification and coach development. As an organization, our goal is to build and deliver consistently top-performing teams that compete at the highest level. A few highlights worth noting include, of course, our Mad Lion League of Legends team and our New Gallery team. Our Mad Lions League of Legends team is in first place in the European League. The team is currently competing in the LEC Summer Split, the second half of the 2022 League of Legends European Championship. The championship will determine the seating for the summer playoffs, where six of the league's 10 teams will compete for the European Championship and subsequently for the qualification of the World Championships. On the Valorant side, subsequent to quarter-end UC1, we announced our entry into the Valorant esports ecosystem, designing the top European roster of players. The team proceeded to have an incredible regular season, finishing with a 17-1 record. They made it to the grand final at the VRL 2022 France Revolution, where they ultimately placed second. When we connected last quarter, we were heading into hosting Canada's first-ever Call of Duty League, tournament in Canada. The Toronto All-Term Major 3 tournament, powered by Dell, took place from June 2nd to 5th at the Mattamy Athletic Center. Formerly known as Maple Leaf Gardens, this historic building pioneered a new generation of sports with a major esports tournament featuring the best of Paul's BB players in the world competing for a $500,000 USD prize purse. With 8,000 fans in attendance, Major 3 set a new standard, furthering the city's position as a global leader and in the industry. Driven by the fans and the home field advantage, Toronto also finished third with a dramatic run through the elimination bracket. Building on the success of Major 3, we're currently preparing for our second major esports event of the year, the Toronto Compliance Summer Showdown powered by Bell, also taking place at the Matinee Athletic Centre. The Overwatch League event will be the first of its kind in Canada, running from September 8th to 11th. We're excited to bring the Overwatch community together, provide them with a personal and authentic entertainment experience that will once again set us apart. And so our momentum continues. We remain keenly focused on our vision for building a sports media and entertainment company for today's generation of fans. Thanks once again for joining us today, and at this time, I'll pass the call on to Rakesh to provide more detailed review of our financial results.