Greetings, and welcome to Moving iMage Technologies' Third 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 from Hayden IR. Thank you. You may begin.

Thank you, operator. Good morning and welcome to Moving iMage Technologies' third quarter fiscal 2023 earnings conference call and webcast. With me today is Chairman and CEO, Phil Rafnson, who will provide an industry overview; Co-Founder and Executive VP of Sales and Marketing, Joe Delgado, who will provide a strategy and business overview; and our CFO, Bill Greene. For those of you that have not seen today's release, it is available in 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 that involve several risks and uncertainties. Words like believe, expect, anticipates 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. Actual future results could differ materially from those statements. Further information on the company's risk factors is contained in the company's quarterly and annual reports filed with the 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. MiT serves commercial cinema owners, eSports, stadiums, arenas, and live event venues. Today, most of our business is serving cinema operators and owners. North America has approximately 42,000 screens, and 18,000 are outside the top five circuits. While we work with the top five, most of our business is with small to medium operators. As you look at MiT as an investment, industry and company-specific factors will contribute to our future performance. So, first, I'll address the industry trail winds and then Joe will discuss our company-specific reasons to invest in MiT. Industry trail winds provide the underlying optimism in our ability to grow the company, including domestic box office improvement, technology, and venue upgrade cycles; new theater builds; and the addition of amenities and other content to the moviegoing experience. As you probably know, this industry was hit hard by COVID in 2020 and the first half of 2021, with box office receipts declining from over $11 billion in 2019 to $2.1 billion in 2020. The box office recovered in 2022 and to over $7.5 billion and momentum should continue into 2023 when box office releases are expected to be up nearly 50%, approaching pre-pandemic levels for the first time in three years. Additionally, the studios have made it clear that exclusive theater releases drive studio success and there is no longer any debate; streaming is a complementary down market revenue generator and not a threat. Next, we are in the early stages of a technology upgrade cycle, especially for laser projectors and servers. We are also looking at sound systems and ADA device refreshes over the next few years, all of which will benefit MiT. During the last cycle, we participated in upgrading approximately 17,000 cinema screens over nearly five years. So, we believe there's a long runway ahead. Before turning the call over to Joe, I'd like to thank our dedicated employees. Without them, we would not be in what I believe is the strongest position we've ever been in as a company from an operational, financial product and competitive perspective. Thank you. Joe?

Thank you, Phil and good morning everyone. I'll start by briefly reviewing our business and providing updates on each area. Today, cinema is our core business consisting of FF&E projects and selling our proprietary US manufactured goods and third-party technologies. FF&E projects tend to be at the low end of our gross margin profile and can be lumpy, with start dates frequently pushing out into future quarters. Today, FF&E is the largest part of our business. However, given the low margin profile, lumpiness, and timing factors I just mentioned, the first pillar of our growth strategy is to drive revenue growth from higher-margin products. This comes from two areas. First, we have over 50 proprietary manufactured products that help increase FF&E project gross margins and overall gross margins when sold à la carte. These include our Caddy products and our line of ADA products acquired last year, the latter of which, a requirement for every theater in the country, additionally to evaluate the product. We believe this product with attractive margins will help accelerate growth in fiscal 2024. Second, we're developing technology products for cinema that we feel have disruptive potential and bring significantly higher gross margins and reoccurring revenue streams. Examples include MiTranslator for both ADA compliance and marketing to non-English proficient speaking moviegoers, the CineQC SaaS platform for venue management and our e-Caddy product, which will bring technology and services to live venues such as stadiums and arenas. First, I'll discuss our MiTranslator offering, which I believe has the potential to begin accelerating our growth in fiscal 2024. The MiTranslator is a multi-language solution with reoccurring revenue stream that forms the high end of our accessibility strategy. The market in North America alone is tremendous, with over 70 million non-English proficient speakers that may not have previously attended…

Thanks Joe and thank you, everyone for attending our earnings call. I'm going to spend a little time reviewing your model, and then I'll take you through the quarter, followed by a Q&A. Currently, projects are the key driver for our business, making up roughly 60% to 65% of revenue. We serve as a project manager, procuring and reselling FF&E and services for refurbishing and upgrading or building new theaters. This business can be lumpy and given these tend to be major projects, timing can be a challenge to forecast as often the customer will push out or less frequently, pull in start dates. Since much of the makeup of our projects are pass-through costs with a small margin added in, project margins are in the mid-teens. That said, we have several routes to improve these margins and demonstrated by our year-to-date results. Some of the ways that we improve on these margins are to upsell installation services, use our proprietary manufactured products, and through the resale of higher margin technology products, including projectors and servers, and more recently, sound system products through our relationship with LEA Professional. Next, we sell our higher margin proprietary manufactured offerings à la carte, which have margins ranging from 35% to 55% and include our Caddy and ADA products. As we continue to increase the number of proprietary manufactured products that we sell, we expect our mix to shift and more favorably impact gross margin. Finally, we have our emerging products like MiTranslator, CineQC, and eCaddy that we expect will have 50%-plus gross margins and recurring revenue streams when they hit the market. Over the near-term, we expect our proprietary manufactured products and the resale of higher margin technology products will drive margin expansion. Over time, as our emerging products start to ramp, we…

Thank you. I'm showing no questions. I'll turn the floor back to Mr. Siegel for final comments.

Great. Thanks for attending our call. Just to let everybody know, we will be at the LD Micro Conference on June 6th and 7th in L.A. And if you're interested in the meeting, please reach out to me. Thanks.

Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation.