OverActive Media Corp.

Good day, everyone, and welcome to Overactive Media's first quarter conference call. At this time, participants are in the listen-only mode. A question-and-answer session will follow management's remarks. This conference call is being recorded, and a replay for today's call will be available on the Investor Relations section of Overactive Media's website. It will remain posted there for the next 30 days. I will now hand the call over to Mr. Davak Pedram.

investor relations for overactive media for introductions and the reading of the city barber statement please go ahead sir thank you brian and good morning everyone welcome to overactive media's first quarter 2023 earnings conference call a copy of the company's earnings press release is available on the investor relations sector section of our website at overactivemedia.com With us on today's call are Adam Adamu, Overactive Media's Interim Chief Executive Officer, Alison Walker, Chief Commercial Officer, and Rakesh Shah, Chief Financial Officer. Today, we'll review the highlights and the financial results for the first quarter of 2023, 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 2023 objectives, the company's strategy to achieve those objectives, as well as statements with respect to 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 forward-looking statements reflect management's current beliefs and are based on information currently available to management and are 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 a supplement to and not a substitute for GAAP financial measures. Reconciliations between the two can be found in our MD&A, which is available on cdar.com and our website. At this time, it is my pleasure to introduce Adam Adamu, Interim CEO of Overactive Media. Adam, please go ahead.

Thanks, Fabik. Greetings, everyone, and welcome to today's conference call. I would like to start off by expressing my confidence in our business and strategy for 2023. We have been executing against a well-thought-out plan that will lead us toward building a successful, scalable, and sustainable business model. I would like to first address the challenging macro environment within the esports industry. While some face unprecedented pressure due to decreased sponsorship budgets and a lackluster equity market, we feel optimistic about our prospects. That said, we must acknowledge that these headwinds have impacted our short-term performance but we remain focused on addressing them effectively. Our cash at the end of the first quarter was over $10 million, and I'm proud to report that our financial position is strong and getting stronger. In the second quarter, due to league-related inflows, player transfers, new revenues, and advancements, we generated an additional $1.2 million in cash to date. As of May 23rd, Our cash is $11.6 million, which provides a solid foundation to grow and pursue new opportunities. Having a solid balance sheet with sufficient working capital puts us in a unique position compared to many of our peers facing significant challenges due to the current market conditions. Our ability to self-fund our growth strategies gives us a tremendous competitive edge, allowing us to take advantage of opportunities that may arise from industry consolidations. Additionally, we fully understand the importance of being prudent when managing our finances. Therefore, while we remain committed to investing in growth initiatives, we are monitoring our expenses carefully. Moving into our operational highlights, I am pleased to share that we made great strides in reducing costs in Q1. By implementing cost-cutting measures, we saved approximately $700,000 relative to the same period in 2022. Moreover, we identified further areas where we could reduce costs without impacting the quality of our overall experience for fans or sponsors. These changes should yield incremental benefit throughout the rest of the year. Regarding our team's business, our coach-led Talent First system continues to pay rewards for team performance. In Europe, our Mad Lions League of Legends team won the LEC Championship in the spring after placing as a finalist in the winter. Along with this came a qualification for the mid-season Invitational Championship in London. Mad Lions continues to exceed expectations for viewership through its success, and it ranks at the top of peak and aggregate viewership hours across North America and Europe. At the mid-season Invitational last week, Mad Lions emerged with the highest peak viewership across all Western teams of the tournament. That is a remarkable achievement for a brand that was relaunched just three years ago. Our Call of Duty team, the Toronto Ultra, won the Major 3 Championship in Arlington, Texas, securing the highest peak viewership in Call of Duty League history, a tournament that saw 5.5 million hours watched over four days. Unlike other North American leagues, the Call of Duty League has seen a surge in viewership and growth in its fifth season. Our Overwatch League team, the Toronto Defiant, finished in fourth place at the Pro-Am tournament in March, and is now in its fifth season of play in the Overwatch League. The exclusive to YouTube viewership is stronger than we anticipated, and we are building momentum across our channels as the season builds. Across our franchised and non-franchised teams, we see growth in engagement and viewership. We see market weakness as an opportunity to expand our reach and broaden our fan base, which is what we are doing. I will now turn it over to Alison Walker, our Chief Commercial Officer, who will speak about our commercial and business highlights from Q1 and to date.