Greeting and welcome to Moving iMage Technologies Second Quarter 2024 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce Brian Siegel, Vice President, Investor Relations and Strategic Communications. Thank you. You may begin.

Thank you, operator. Good morning, and welcome to Moving iMage Technologies earnings conference call and webcast. With me today is Chairman and CEO, Phil Rafnson, who will provide an industry overview; Co-Founder, Executive VP of Sales and Marketing, Joe Delgado, who will provide a strategy and business overview; and our CFO, Will Green. 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 that involve several risks and uncertainties. Words like believe, expect, anticipate, mean that these are our best estimates as of this writing, but that there can be no assurances of 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. 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. As you look at MIT as an investment, industry and company-specific factors will contribute to our future performance. First, I'll address the cinema industry as it stands today, and then Joe will discuss why we're so excited about the future, where we are introducing potentially disruptive technologies into cinema, eSports, stadium, arenas and other live entertainment venues. Historically, our business has been cyclical driven by new technologies and technology upgrade cycles. We're currently in early days of one right now, where newer technologies such as laser, projectors with upgraded servers, new screens and smart sound systems are being purchased to replace older technologies. Additionally, we are seeing cinema owners build new theaters and upgrade or refurbish older ones. These new theaters often include new amenities such as dine-in, bars, and more, all with the idea of making going to the movies a destination experience. From an industry growth standpoint, as I discussed previously on these calls, COVID took its toll on the industry. Over the past few years, we have returned to a more normalized environment with the box office originally expected to approach pre-pandemic levels in 2023. Unfortunately, the now settled Hollywood strikes impacted the later part of 2023 and are expected to be a headwind for box office growth in 2024 due to delays in filming and releasing new content. This will have a trickle-down effect on our business for the remainder of fiscal '24, which Joe and Brian will discuss in more detail. 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 legacy business, which consists of FF&E projects and selling our proprietary U.S. manufactured goods and third-party technologies. As Phil mentioned, this part of our business has historically been more cyclical and lumpy with project start dates, often being pushed out. Additionally, FF&E projects tend to be at the low end of our gross margin profile, although there is strong operating leverage in this part of the business. In general, FF&E is the largest part of our business. However, the lower margin profile lumpiness and timing factors I just mentioned, a major part of our strategy going forward is to shift our mix towards higher-margin products as well as smooth out the lumpiness and cyclicality. For cinema, this includes expanding our existing lineup of over 50 proprietary manufactured products, including our ADA compliance products and Caddy lines. Former of which was a contributor to our strong first quarter results. By manufacturing these products, we can significantly increase our margins on FF&E projects and our overall company gross margin when sold a la carte. Additionally, our partnership with LEA professional for smart power amplifiers is another potential source of growth and margin expansion for both FF&E projects and a la carte sales. There are 2 parts to this opportunity. The first is power amplifier attrition. On average, each movie screen needs 5 to 6 power amplifiers, and these tend to have an annual attrition rate of 5% to 10%. We estimate the total installed market for power amplifiers in North America to be about $630 million. So the annual TAM is around $30 million to $60 million. Given LEA is so confident in its product quality, its…

Thanks, Joe, and thank you, everyone, for attending our earnings call. We’re going to spend a little time reviewing our model, and then I’ll take you through the quarter, followed by Q&A. To date, our legacy FF&E projects have been the key driver for our business, making up roughly 60% to 65% of revenue on average. As Joe and Phil mentioned, FF&E projects are more cyclical and can often see start dates pushed out as we saw in fiscal year ‘23. We serve as a project manager, procuring and reselling FF&E and services for refurbishing, upgrading and building new theaters. [ This is ] a large part of these projects involve pass-through costs with a small margin added in, project margins are in the mid-teens. We have several routes to improve these margins, including upselling installation services, scoping our proprietary manufactured products into the project 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 manufacturing offering, a la carte, which have margins ranging from 35% to 55% that include our fabrication, caddie and ADA compliance products. Additionally, since we are in the early days of our multiyear technology upgrade cycle, we received discrete orders for servers projectors in LEA power amps, all of which have gross margins above the company average. In the near future, as our emerging products like MI translator, CineQC and E-caddy hit the market and start to scale, we expect our mix to shift even more significantly away from FF&E as these products will likely have 50-plus percent gross margins. Now moving to our second quarter results. We reported revenue of $3.3 million, down 33% versus last year. On our last call, we said that we…