Thank you for joining us for today's call. Before I turn the call over to the company, we need to advise you of the following; comments made on today's call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current assumptions and opinions, and involve a variety of known and unknown risks and uncertainties. Actual results may differ materially from those contained in or suggested by such forward-looking statements. Important factors that might cause such differences include those set forth from time to time in the company's SEC filings including the company's report on Form 10-K for the year ended December 31, 2016, and other current and periodic reports the company files with the SEC. At this time, I'd like to introduce Andrew Perlman, the Chief Executive Officer of FORM Holdings.

Good afternoon, and thank you all for taking the time to join us for investor update and earnings call. I would like to update our shareholders on our first quarter 2017 results, and review some of the near-term growth opportunities we see in our business segments that should drive revenues, and result in enhanced profitability. Joining me today on the call are members of FORM Holdings, XpresSpa, and Group Mobile management. We have Anastasia Nyrkovskaya, FORM Holdings Chief Financial Officer; Ed Jankowski, FORM Senior Vice President and XpresSpa's Chief Executive Officer; and Darin White, FORM Vice President and President of Group Mobile. To begin, let me say I appreciate the feedback and support of our shareholders that we received. We made several important transformative strategic changes in the last year that established our presence in the travel, health and wellness industries, and redefined our presence in the technology industry. Today, FORM has two key revenue drivers; XpresSpa, which was acquired in December 2016, and is the leading airport spa company in the world, and Group Mobile, which we've evolved into a rugged computing full-service integrated solutions provider poised for self-sustaining growth. Since executing on these acquisitions, we've been in a curative transition as we've refined our go-forward model, to review the associated cost structures, and approach completion of our strategic shift towards two key operating segments; wellness and technology. We continue to anticipate that FORM will generate over $79 of consolidated revenue this year, 2017. And I'm proud that we've achieved $14.7 million of revenue in the first quarter. When we acquired XpresSpa, we bought a market leader. But being able to acquire a company that defines a category meant that we were also buying a company that came with a variety of challenges and opportunities. For instance, in the…

Thank you. The floor is now open for questions. [Operator Instructions] And our first question comes from Mark Robbins. You may now state your question, Mark.

Hi, Andrew. I noticed in your presentation you talked a bit about the good store unit [ph] economics. Had at a lot of new stores and I noticed you also mentioned opening a new location in Phoenix. Just wanted to get a feel for what sort of performance you're seeing there. And yes, let's go with that.

Sure, thanks for the question. As I mentioned earlier, the new location is Phoenix is in one of the busiest airports in America, and actually, in fact, the world. We actually included in the press release that we'd issued around opening the store in Phoenix and images of the store. And it's a beautiful store, and I think one of the things that again differentiates what happens in the airport, and with services from outside of the airport is because we have fixed traffic. Our stores ramp up very quickly. And in fact, we actually opened the store in Phoenix fully staffed. And so it actually is performing almost in line with what we would expect from a mature store in just the first week of operation. So, we're very excited about the early performance. I think it's too early to state numbers; it's only been opened for a few days. But, again, we're seeing performance out of the new stores that is almost exactly at the level of that of a mature store. And in some cases, because the layouts are actually even better in the new stores beyond what we would expect out of the base of the new stores.

I can also add that we opened up a kiosk in Charlotte in December of last year, and we were asked by the airport why we're under construction for the in-line which will open up in the third quarter. We were asked to come up with a kiosk concept, which we did very inexpensively, it was about $125,000. And it was literally just to get our foot in the door in Charlotte. And year-to-date, that kiosk is performing annualized at about $1 million, which really pleasantly surprised us, and also gave us hope for the kiosk moving forward in other locations.

Great. Thanks a lot.

Thank you. And our next question comes from Jason Richmond. You may now state your question, Jason.

Hi, good afternoon. You referenced, I believe, some additional stores outside of the RFP process. Can you please elaborate on that?

Well, one of the things that we did to reinvigorate XpresSpa 2.0 are really [indiscernible] XpresSpa 2.0 is we participated in the annual ARN, Airport Revenue News convention which was in New Orleans, in March. And as a result of that, we had a number of airports that were so excited about our new concept, including [indiscernible], and incredibly excited about our temp [ph] locations and our kiosk locations, that they immediately met with us to talk about opportunities that we might have in opening up either temp stores, top-up stores, or kiosks in current locations that are vacant for them. So, for instance, the month of April, we followed up by flying around and meeting with all these airports and identifying spaces that we could open up in the third or fourth quarter that would not be part of the RFP process. So, for example, there are two locations in LAX that we are negotiating to open up temp locations before the end of the year. And then also in Las Vegas, there's one location up here, a temp location, they want us to do a permanent location there. And then they also offered up another temp location. Pittsburg offered us an additional kiosk in addition to the spa we have there. And in Philadelphia, we may have the opportunity to open up a kiosk is Philadelphia also. So that's what we were speaking of when we talked about additional locations that don't require the RFP process.

I see. So if it's a temp location, how does that work with respect to lease terms, and can they turn into permanent locations, how does that work?

So, in many cases the airports come to us about a temporary location, and frequently it can turn into a permanent location if the temporary location is performing well. I would also note separately what I was highlighting before, is that a lot of what we're moving to and a lot of the interest is around kiosks, which is a much more flexible operating model, and actually has a better cash-on-cash return even than our inline stores, which are already excellent.

I see, interesting. Thank you very much.

Thank you. And we do have a question from the web. When do you expect to turn into a profit-making entity at the whole company level?

Sure. So, we actually have not given public guidance as to when we will turn to profitability. What we have said publicly is that we expect, certainly at the segment level, that we will turn EBITDA positive within 2017.

Okay, thank you. [Operator Instructions] Our next question comes from [indiscernible]. You may now state your question, Josh.

Hi guys. How's it going? I'm trying to square the 25 RFPs in the next 12 months, of which you guys expect to win 80% with the five store opening this year, and with the current capital state of the company? I know you guys said you expect to have enough cash for the next 12 to 18 months. I'm just trying to figure out if you're going to win 20 new stores in the next 12 months that is $500,000, how they'll be funded basically.

Yes, sure. So, the RFP process actually deals with sort of [indiscernible] in the future. So if you talk about the five locations that were run through the RFP process that are opening this year, many of those were won in excess of 12 or even in some cases 18 months ago. So as we look forward right now we're really focused on improving the operations of the business, and our expectation is that the CapEx associated with those RFPs will come well into the 2018, in some cases 2019.

And do you expect [indiscernible] cash flow from the business?

That will be [indiscernible] but again, our focus right now is improving the operations of the business, and we'd expect our CapEx 12, 18 months out.

Thank you. One more for you, we've come to one-time costs, we've seen it several quarters in a row, obviously in Q4 2016 it was the merger closing costs, and Q1 2017 is the merger integration cost, it sounds like in your prepared remarks that there's going to be one more quarter, Q2 2016 of -- with some one-time cost, and is that accurate?

Sure, yes. And I will actually go a step further. So two things to note, one in the 10-Q, we actually provided segment level reporting on the P&L. And we also actually provided a table that includes what many of the one-time costs that occurred outside of the norm. So the goal really was to provide that transparency because I think that is absolutely an appropriate question. The second thing which I mentioned as far my remarks before is that we would expect about a $1 million of additional costs that are falling in the second quarter that are related to one-time expenses and then work through it.

Okay, all right. It feels it actually just hit the sec.gov just now, so haven’t had a chance to look at it, but thank you.

Yes.

Thank you. And there appear to be no further questions at this time. Thank you for your participation. You may now disconnect your lines at this time. And have a great day.