Greetings, and welcome to the Moving iMage Technologies First Quarter Fiscal 2023 Earnings Call. At this time, all participants are in a listen only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Brian Siegel, with Hayden IR. Thank you. You may begin.

Good morning, and welcome to the Moving iMage Technologies First Quarter of Fiscal 2023 Earnings Conference Call and Webcast. With me today is Chairman and CEO, Phil Rafnson; Co-Founder and Executive VP of Sales and Marketing, Joe Delgado and CFO, Mike Sherman. For those of you that have not seen today's release, it is available on the Investors section of our website. Before beginning, I would like to remind everyone that except for historical information, the matters discussed in this presentation are forward-looking statements involve several risks and uncertainties. Words like believe, expect and anticipate mean that these are our best estimates as of this writing, but that there can be no assurances that expected or anticipated results or events will actually take place. So our actual future results could differ significantly from those statements. Further information on the company's risk factors is contained in the company's quarterly and annual reports filed with the U.S. SEC. Now I'd like to turn the call over to Phil. Phil, take it away.

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 providing an update on overall industry trends that we believe will drive the tremendous growth opportunity for MiT over the next few years, and then Joe will provide an overview of MiT's business and growth strategy. He will then turn the call over to our CFO, Mike Sherman, to discuss today's results followed by Q&A. MiT serves commercial cinema owners, stadiums, arenas and other live event venues and eSports. Today, most of our business is serving cinema owners and operators. In North America, there are approximately 40,000 screens, 18,000 of which are outside the top five circuits. While we work with majors, most of our business is with small to medium-sized operators. As you probably know, this industry has been hit hard by COVID during 2020 and the first half of 2021 with box office receipts declining from over $11 billion in 2019 to $2.1 billion in 2020. In the second half of 2021, the industry began to recover and that trend has continued into 2022 with many blockbusters having already been released and the year will likely finish strong with Black Panther, Black Adam and Avatar: The Way of Water. Momentum should continue into 2023 with an already exciting slate of releases expected, setting the backdrop for an even stronger year. As I discussed on past calls, there are additional tailwinds that we expect to benefit both the cinema and live venue industry. The first is related to government grants. As part of the CARES Act, nonpublicly traded live event operators were able to access over $16 billion of grants through the SBA. This program called…

Thank you, Phil, and good morning, everyone. I'll start with a review of our four pillar growth strategy. The first pillar is driving revenue growth and margin expansion by shifting our product mix towards our higher-margin proprietary products. Our proprietary products fall into two categories. First is our proprietary manufactured goods, which we do right here in Fountain Valley, California. Today, we have over 50 proprietary manufactured products that tend to help increase project margins and overall margins on sold a la carte. These include our Caddy and newly acquired USL product line, which rounds out our accessibility strategy and was a nice contributor to our first quarter results. Second are the products we feel have disruptive potential. These products are more technology focused and bring higher margins and recurring revenue streams. For example, we have a bundled solution for venue management called CineQC. CineQC is a recurring revenue SaaS platform, hardware service solution for quality assurance, theater operations, staff management, inventory control, back office analytics and remote access and control over all auditorium systems. We believe there's nothing like it available in the industry and the signing of National Amusements as a customer was a strong validation of that solution, and we hope to have more to announce in fiscal 2023. Next, we have MiTranslator, which will provide a high-end product for our accessibility strategy. The MiTranslator is a multi-language translation device with a recurring revenue service attached. This disruptive offering brings multi-language in-theater captioning capabilities, including American Sign language through augmented reality glasses. The market in North America alone is tremendous, with over 70 million non-English proficient speakers that may not have previously attended our movies or for those who did, they could now have a significantly enhanced movie going experience. They received outstanding reviews when we showcased…

Thanks, Joe. Good morning, and thank you, everyone, for attending our 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. Currently, projects are the key driver for our business, making up roughly two-third of revenue. For projects, we basically serve as a project manager procuring and reselling FF&E and services for refurbishing, upgrading and building new theaters. Since much of these are pass-through costs, margins are in the mid-teens. We have several routes to improve project margins as demonstrated by our first quarter results. First, we provide installation services, which tend to have margins in the mid-20s. Second, we resell technology products, which tend to have margins in the high teens, low 20s. Finally, we sell our high-margin proprietary manufactured offerings, which include our Caddy products and the USL product line, the latter of which contributed to this quarter's strength. Our proprietary manufactured products have margins ranging from 35% to 55%. As we continue to increase the number of proprietary manufactured products, we expect the margin to shift more favorably impact gross margin. Over the near term, we expect our proprietary manufactured products and the high-margin resale of technology products will drive this margin expansion. For example, in Q1, in addition to USL, we also saw strength due to the technological upgrade cycle for servers and screens. Over time, as our CineQC SaaS platform becomes a larger contributor, we release our MiTranslator. And as other products in development come to market, we expect this to shift more significantly away from FF&E. Now I'll move on to the results. First quarter revenue increased 69% to $5.9 million. As we previously mentioned, in addition to project work, we saw strong demand related to…

No, no questions. Operator, you can close the call.

Thank you, ladies and gentlemen. This concludes our Q&A session and our call today. We thank you for your interest and participation. You may now disconnect your lines. End of Q&A: