Good afternoon, and welcome to the Allied Gaming & Entertainment, Inc. Third Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Tyler Drew of Addo Investor Relations. Please go ahead.

Thank you, operator. Good afternoon, and welcome to the Allied Gaming & Entertainment 2023 Third Quarter Earnings Conference Call. Speaking on the call today are Allied Gaming & Entertainment's Chief Executive Officer Yinghua Chen and Chief Financial Officer, Roy Anderson. Before I turn the call over to management, please note that our prepared remarks may contain forward-looking statements. Words such as may, will, expect, intend, plan, believe, seek, could, estimate, judgment, targeting, should, anticipate, goal and variations of these words and similar expressions are intended to be identified as forward-looking statements. Actual results could differ materially from those implied by such forward-looking statements due to a variety of factors discussed in the company's public filings, including the risk factors discussed in documents filed with the Securities and Exchange Commission. Although the company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be attained. The company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. In addition, certain of the financial information presented in this call represents non-GAAP financial measures. The company's earnings release, which was issued this afternoon and is available on the company's website, presents definitions of such non-GAAP financial measures, reconciliations to the appropriate GAAP measures and an explanation of why the company believes such non-GAAP financial measures are useful to investors. And with that, it is now my pleasure to turn the call over to Allied Gaming & Entertainment CEO, Yinghua Chen.

Thank you, Tyler, and thank you all for joining us this afternoon. As we share our exciting development from the past quarter, we're committed to executing our strategic plan to focus on our growth in the realms of e-sports, gaming and entertainment. Beginning with our financial performance in Q3, we've achieved a significant milestone by recording positive net income. This accomplishment reflects our relentless effort to enhance operational efficiency and reduce expenses in anticipation of robust revenue growth in 2024. Our unwavering commitment to improving profitability remains steadfast despite the challenges we faced in Q3, particularly in the form of a 28% decrease in revenues, largely due to decrease of life events, reflecting the impact of economic uncertainty. Our dedication to streamlining our general and administrative expenses resulted in a remarkable reduction of over 50% in Q3. This accomplishment not only improved our net income, but also bolstered our adjusted EBITDA results, setting us on a path to manage and grow our business at this lower expense levels. During the quarter, our subsidiary, Allied Esports International, AEI, provided its audiences with more world-class experiences at both its HyperX Arena and Omen Mobile Arena. We produced a total of 79 event days during Q3, comprising 44 proprietary event days and 35 third-party event days. Notable events at HyperX Arena included Boxing Weekend Reception, a dynamic and fun gaming event honoring boxing legends, such as Mike Tyson and Evander Holyfield; a Red Bull and Riot Games event showcasing brand-new game plays from Riot's upcoming title Project L, for the first time during the most attended Evolution Championship Series 2023 tournaments in the history? Hacker1, a 5-day hackathon event and an industry event by Cox Communications to discuss their leading connectivity capability. In September, we also hosted the UNLV Hockey Annual Giving Day,…

Thank you, Yinghua Chen. From a profitability perspective, our third quarter revenues of $1.1 million were down 28% from the prior year period. As Yinghua alluded to, the year-over-year revenue decrease was primarily due to a decline in third-party in-person events at our HyperX Arena in Las Vegas. Total cost and expenses for the third quarter of 2023 were $1.8 million, a decrease of 46% compared to the third quarter of 2022. The decrease was driven by a strategic reduction in our G&A expenses of 63% and a 48% decrease in our in-person expenses relating to the decline in third-party events held during the quarter, along with certain operating efficiencies we have implemented in our in-person events segment. The 63% reduction in G&A includes cash compensation, stock-based compensation and the recognition of employee retention credit refunds under the 2020 CARES and subsequent acts. These decreases were partially offset by an increase in depreciation and amortization expenses, acquisition-related professional fees and consulting fees incurred in connection with other strategic investment opportunities. Net income for the third quarter of 2023 improved significantly to $0.1 million compared to a net loss of $1.6 million in the prior year period. Our results for Q3 2023 include approximately $716,000 of interest income earned on short-term investments. Our adjusted EBITDA loss was $0.2 million in the third quarter of 2023, a considerable improvement from a loss of $1.8 million in Q3 2022. Our adjusted EBITDA includes adjustments for depreciation, amortization, business acquisition transaction costs, stock-based compensation and interest income. Now moving on to our balance sheet. As of September 30, 2023, our cash and short-term investments position totaled $77.4 million, including $5 million of restricted cash compared to $86.8 million at December 31, 2022, which also included $5 million of restricted cash. As of September 30, 2023, the company's working capital position was very strong at $73.9 million including the current portion of an operating lease liability of $1.4 million that was recorded in connection with the implementation of the new leasing standard, ASC 842 on December 31, 2022. Also during the quarter and under our stock repurchase program, we acquired 183,021 shares of our common stock in open market transactions at an average selling price of $0.98 for a total repurchase cost of $171,355, excluding broker fees. This brings us the $2.7 million in aggregate repurchases of our common stock since the commencement of the plan. Moving forward, the manner, timing and amount of any purchases will continue to be based on the evaluation of market conditions, stock price and other factors. I will now turn the call back over to Yinghua for closing remarks.

Thank you, Roy. In summary, we remain excited about the growth prospects ahead of Allied Gaming & Entertainment. We have done significant work in the background, which we believe has built a strong foundation. And along with our recently closed investment in Zhihe”, will soon become more evident in our financial results. We look forward to providing you with additional updates on our progress when we release our fourth quarter and full year 2020 results in March. Thank you.

The conference has now concluded. Thank you for attending today's presentation, and you may now disconnect. End of Q&A: