Greetings and welcome to the Moving iMage Technologies Third Quarter Fiscal 2022 Earnings Results. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. Please note that this conference is being recorded. I will now turn the conference over to our host, Brian Siegel, Senior Managing Director, Senior Managing Director. Thank you. You may begin.

Good morning and welcome to Moving iMage Technologies’ third quarter fiscal year 2022 earnings conference call and webcast. With me today is Chairman and CEO, Phil Rafnson and CFO, Mike Sherman. Today’s call will begin with prepared remarks and follow with a virtual Q&A session. Please submit your questions to the webcast portal and we will do our best to answer them. Please note this event is being recorded. This earnings call may contain forward-looking statement as defined in Section 27(a) of the Securities Act of 1933 as amended, including statements regarding, among other things, the Company’s business strategy and growth strategy. Expressions which identify forward-looking statements speak only as of the date the statement is made. These forward-looking statements are based largely on our Company’s expectations and are subject to a number of risks and uncertainties, some of which cannot be predicted or quantified and are beyond our control. Future developments and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. In light of these risks and uncertainties, there can be no assurance that forward-looking information we’ll provide to be accurate. Now I’d like to turn the call over to Phil. Phil?

Thank you, Brian, and thank you, all for joining us today. I’m Phil Rafnson, CEO of Moving iMage Technologies, or MIT for short. Like last quarter, today I'm going to spend my part of the program to update on overall industry trends and that we believe will drive the tremendous growth opportunity for MIT over the next few years. I will then add comments relating to the operations of our technical sales staff and talk a little bit about what we have operating right now. MIT serves a commercial cinema and live events industry in several ways. Today most of our business is covering cinema owners and operators in North America, where there are approximately 40,000 screens, 18,000 of which are outside the top five circuits. While we work with the majors, most of our business is with small to medium size operators. As you know, this industry has been hit hard by COVID during the 2020 and the first half of 2021 with box office receipts reclining from over $11 billion in 2019 to $2.2 billion in 2020. In the second half of 2021, the industry began to recover with 14 films grossing over a $100 million in the domestic box office and the overall domestic box office doubling to over $4 billion industry -- $4 billion. Industry analysts expected domestic box office to grow to over $10 billion in 2022 with Strangelove, Dr. Strangelove, The Batman, Sonic 2, Uncharted and those alone topping $100 million and we haven't even hit summer yet. This is truly exciting. We expect many more tent poles for the remainder of the year, including sequels to Avatar, Thor, Black Panther, Jurassic World, Aquaman, Top Gun, Minions and the Superman Multiverse animated movie. New movies include the Flash, Black Adam and Lightyear among others.…

Thanks Bill. Good morning and thank you everyone for attending our third quarter earnings call. Like last quarter, I'm going to spend a little time reviewing our model, and then I'll take you through the quarter followed by a Q&A session. One of the challenges with our business is the timing of revenue recognition. For example, projects sometimes get delayed for various reasons and parts of a project or a whole project may push out into a future quarter or in some cases into the next fiscal year, which can cost some lumpiness in our business. Fortunately, we haven't seen much of this so far this year. However, as a result, we will generally be conservative when providing guidance, which we will update quarterly. From a gross margin profile, projects have historically made up about two thirds of our business and they tend to be below company average due to the resale of furniture, fixtures, and equipment or FF&E, all which are pass-through costs. Installation services and sales of our higher margin proprietary manufactured offerings, which tend to be well above the company average start to bring this margin up. Over time, we expect the mix to shift more favorably towards our proprietary products and services. Initially, our proprietary manufactured products and the high margin resale of technology products will drive this margin expansion. Still as we begin to introduce our CineQC, a SaaS platform, our MIT translator and other products in development, we expect this shift to be more significantly away from FF&E. Now I'll move into the results. I'm thrilled to say that our results were strong. Revenue increased 241% to $5.8 million. Much of this was related to the pickup in projects to build new theaters or upgrade existing theaters. Even with this growth, we finished the…

Yeah, Mike, just one question. The question is related to operating leverage. And so basically the person wants to know if as revenue increases, will they see operating leverage that will drop down to the bottom line?

Yes. The answer is clearly yes. The incremental revenue expected from here and the resulting gross margin should substantially drop to the bottom line. I would say not a 100% as the company will wisely use some of that, potentially a small amount of that to reinvest in such things as continuing R&D activities for the new product development and also to enhance marketing and sales activities that can drive even further that revenue growth. So the answer is yes.

Okay, great. That's all we have in terms of questions. Operator, you can close it out.

Thank you. This concludes today's conference. All parties may disconnect. Have a good day.