Q4 2024 Moving iMage Technologies Earnings Call

Greetings and welcome to the moving image technologies fourth quarter and fiscal year end 2024 earnings call. At this time, all participants are in a listen only mode.

Operator: At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation.

A question and answer session will follow the formal presentation. If anyone should require operator assistance. Please press star zero on your telephone keypad it.

Operator: If anyone should require an operator, since these press star zero, I tell the phone keypad.

Brian Siegel: It is not my pleasure to introduce your host, Brian Siegel, Vice President of Investor Relations and Strategic Communication. Thank you. You may begin.

It is now my pleasure to introduce your host Brian Shea.

Brian Shea: Residents Investor Relations and strategic communications. Thank you you may begin.

Unknown Attendee: Thank you, operator.

Thank you operator, good morning, and welcome to moving image Technologies earnings conference call and webcast.

Brian Siegel: Good morning and welcome to Moving iMage. This is the technology earnings conference call webcast. With me today is Chairman, 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 RCFO, Bill Green.

Me today is chairman and CEO, So Rasmussen, 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 Bill great for those of you that have not seen today's release. It is available on the investors section of our websites before beginning I would like to remind everyone that except for historical information.

Brian Siegel: For those of you that have not seen today's release, it is available on the investor section of our website. Before beginning, I would like to remind everyone that, except for historical information, the matters discussed in this presentation are for the statements that involve several risks and uncertainties. Words like believe, expect, to anticipate mean that these are our best estimates as of this writing, but that there can be no assurances and expected or anticipated results or events will actually take place. Actual future results could differ materially from those statements.

Brian Shea: 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 that expected or anticipated results or events will actually take place.

Brian Shea: <unk> future results could differ materially from those statements further information on the company's risk factors is contained in the Companys quarterly and annual reports filed with the SEC.

Brian Siegel: Further information on the company's risk factors contained in the company's quarterly and annual reports filed with the SEC.

Phil Rafnson: Now let's turn the call over to Phil. Take it away. Thank you, Brian, and thanks to everyone joining us today. I'm Phil Rafn, CEO of Movie Image Technologies or MIT. We're excited about the future of cinema and the broader entertainment industry, where MIT is positioned to lead with cutting-edge technologies.

Brian Shea: Now I'd like to turn the call over to Phil take it away.

Phil: Thank you Brian.

Phil: And thanks to everyone joining us today.

Phil: I'm, Phil Robson CEO of movie image technologies or M. I T.

Phil Robson: We're excited about the future of cinema and the broader entertainment industry, where M. I T is positioned to lead with cutting edge technologies.

Phil Rafnson: Fiscal 2024 was truly a tale of two vastly different business environments. We began with excellent first quarter results marked by strong revenue growth and profitability. However, the momentum we built was halted by the actors and writer strikes, which significantly affected our second through fourth quarter results. Our customers were unable to initiate their budgeting process and consequently spend their budgets until the strikes were resolved. This created a tough environment for generating near-term value, but we remain focused on positioning MIT for long-term success. During this challenging period, we took proactive steps to strengthen our future prospects. We repurchased stock in the open market, moved forward with the development and go-to-market strategies for our emerging higher-margin recurring revenue products, such as MIT, Translator, eCADD, and CineQC.

Speaker Change: Fiscal 2024 was truly a tale of two vastly different business environments.

Speaker Change: Began with excellent first quarter results marked by strong revenue growth and profitability. However, the momentum we built was halted by the actors and writers strikes, which significantly affected our second through fourth quarter results, our customers were unable to initiate their budgeting process.

Speaker Change: And consequently spend their budgets until the strikes were resolved this created a tough environment for generating near term value, but we remain focused on positioning M. I T for long term success.

Speaker Change: During this challenging period, we took proactive steps to strengthen our future prospects.

Speaker Change: We repurchased stock in the open market move forward with the development and go to market strategies for our emerging higher margin recurring revenue products, such as M. I T translator, he caddie and Senate QC.

Phil Rafnson: And most recently implemented 600,000 in annualized cost reductions. These actions are not only enhancing our operational efficiency, but also lining us with future growth opportunities.

Speaker Change: And most recently implemented 600000 in annualized cost reductions. These actions are not only enhancing our operational efficiency, but also aligning us with future growth opportunities. We believe we have successfully navigated this period and position the company for a return too.

Phil Rafnson: We believe we've successfully navigated this period and positioned the company for a return to growth with greater operating leverage as a result of the strategic initiatives we've executed over the past 12 months. By the June quarter, we saw the cinema industry regain its footing despite the strikes, with the resurgence of blockbuster films and growing demand for premium cinema experiences driving a revitalized market. MIT, as a leader in innovative technology solutions for exhibitors, is well positioned to capitalize on this momentum and ride the wave of industry growth moving forward. Clutching ahead. We're confident in the continued strength of the industry.

Speaker Change: Growth with greater operating leverage as a result of the strategic initiatives, we've executed over the past 12 months by the June quarter, we saw a cinema industry regained its footing. Despite the strikes, but the resurgence of blockbuster films and growing demand for premium cinema experiences driving our Reeves.

Realized market M. I T as a leader in innovative technology solutions or exhibitors is well positioned to capitalize on this momentum and ride the wave of industry growth moving forward looking ahead.

Speaker Change: We're confident in the continued strength of the industry consumers are demanding high quality immersive viewing environments and exhibitors are responding by investing in advanced projection immersive audio and premium amenities, Here's why we're excited and we're one theatres are <unk>.

Phil Rafnson: Consumers are demanding high quality, immersive viewing environments, and exhibitors are responding by investing in advanced projection, immersive audio, and premium amenities.

Phil Rafnson: Here's why we're excited. Number one, theaters are investing heavily. The eight largest cinema chains in the United States and Canada plan to invest over 2.2 billion in upgrades over the next three years. Smaller chains will follow suit to stay competitive, driving further demands for our technologies.

Speaker Change: <unk> heavily.

Speaker Change: Eight largest sentiment change the United States, and Canada plan to invest over $2 2 billion and upgrades over the next three years smaller chains will follow suit to stay competitive driving further demands for our technologies.

Phil Rafnson: Number two, mandatory tech upgrade cycle. The cinema industry is entering a new upgrade cycle as projectors and servers reach end of life. The last cycle lasted six years. Today we're just in the first innings of this shift, and we already see significant opportunities. For example, just one medium-sized customer alone plans to upgrade over 200 projectors, representing 15 to 25 million in potential projector sales alone for us over the next four years.

Speaker Change: Number two mandatory tech upgrade cycle. The cinema industry is entering a new upgrade cycle has projectors and servers reach end of life. The last cycle lasted six years today. We're just in the first innings of this shift and we already see significant opportunities for example.

Speaker Change: Just one medium sized customer alone plans to upgrade over 200 projectors, representing 15% to $25 million and potential projector sales alone for us over the next four years.

Phil Rafnson: Number three: strategic investments by major players. Sony Pictures recently acquired Alamo Drafthouse Cinemas, signaling strong confidence in the future of theatrical releases. We expect this to accelerate growth and present further opportunities for MIT.

Speaker Change: Number three strategic investments by major players.

Speaker Change: Sony Pictures recently acquired Alamo Drafthouse cinemas signaling strong confidence in the future of theatrical releases, we expect this to accelerate growth and present further opportunities for M. I T.

Phil Rafnson: Number four, diversification of theater offerings. Cinemas are expanding into live events, gaming, and corporate rentals, which requires versatile, high-performance equipment. Our movie sports product and other solutions position MIT perfectly to meet these evolving needs.

Speaker Change: Number four diversification of theater offerings.

Speaker Change: Cinemas are expanding into live events gaming and corporate rentals, which requires versatile high performance equivalent our movie sports product and other solutions positioned perfectly to meet these evolving needs.

Phil Rafnson: In summary, the cinema industry is transforming, and MIT is right at the heart of it. The shift forward premiumization and technological innovations aligns perfectly with our offerings. We're confident in our ability to drive sustained growth and continue delivering world-class solutions to enhance the movie-going experience.

Speaker Change: In summary.

Speaker Change: Semi industry is transforming and MIP is right at the heart of it the shift forward premium innovation and technological innovations aligns perfectly with our offerings. We're confident in our ability to drive sustained growth and continued delivering world class solutions to.

Speaker Change: Enhance the movie going experience.

Joe Delgado: Thank you, Joe.

Joe: Thank you Joe.

Joe Delgado: Thank you, Phil, and good morning, everyone. As Phil mentioned, fiscal 2024 posed as share of challenges. But we face them head on and continue to make progress across several key growth initiatives. These efforts are setting the stage for significant transformation of our business model and one that we're confident will fuel even higher growth rates and profitability in the years to come. Starting with our core cinema business, we're seeing strong signs of a promising future. A key driver of this optimism is the technology upgrade cycle. Over the next four years, more than 10,000 projectors will reach the end of their life cycle and will need to be replaced with newer laser technology.

Joe: Thank you Bill and good morning, everyone.

Joe: As Phil mentioned fiscal 2024 posed its share of challenges but.

Speaker Change: But we face them head on and continue to make progress across several key growth initiatives. These efforts are setting the stage for significant transformation of our business model and one that we're confident will fuel even higher growth rates and profitability in the years to come.

Speaker Change: Starting with our core cinema business, we're seeing strong signs of a promising future.

Speaker Change: Driver of this optimism is a technology upgrade cycle.

Speaker Change: Over the next four years more than 10000 projectors will reach the end of their lifecycle and will need to be replaced with newer laser technology. These projectors range in price from 30000 to $130000, depending on brightness and overall variables, while we won't capture every opportunity our experience gives us.

Joe Delgado: These projectors range in price from $30,000 to $130,000 depending on brightness and overall variables. While we won't capture every opportunity, our experience gives us confidence. And during the last upgrade cycle, we reached 50 million in annual sales. And this time, we're more diversified, having introduced over 200 proprietary higher-margin products, many of which complement these upgrades. And additionally, since the last cycle, we've added the Caddy brand of products and ADA compliance offerings to our portfolio. Giving us even more avenues for growth and margin expansion. We continue to be excited about our partnership with LEA Professional, where we have global distribution rights for their smart power amplifiers in the cinema market.

Speaker Change: And during the last upgrade cycle, we reached the $50 million in annual sales in this time, we're more diversified having introduced over 200 proprietary higher margin products, many of which complement these upgrades and additionally, since the last cycle. We've added the caddy brand of products and Ada compliance offerings to our portfolio.

Speaker Change: Giving us even more avenues for growth and margin expansion. We continue to be excited about our partnership with Elliot professional where we have global distribution rights for their smart power amplifiers in the cinema market Lea's products not only carry a higher margin, but also standout with a warranty that's twice the industry standard setting them apart from the large.

Joe Delgado: LEA's products not only carry a higher margin, but also stand out with a warranty that's twice the industry standard, setting them apart from the larger competitors. The opportunity here is tremendous. We estimate that the total install base in this market is valued at about $630 million. And 5% to 10% of this space will need replacement annually, giving us a total addressable market or TAM of about $32 to $63 million per year. We're already testing with several top 10 cinema circuits and successfully completed one test, with others expected to wrap up by year's end. If results are as positive as we expect, we should see orders begin flowing in Fiscal 2025.

Speaker Change: Your competitors.

Speaker Change: Opportunity here is tremendous we estimate that the total installed base in this market is valued at about $630 million and 5% to 10% of this space will need replacement annually, giving us a total addressable market or Tam of about 32% to $63 million per year, we're already testing with several top 10 cinema circuits and success.

Speaker Change: We completed one test with others expected to wrap up by year's end. If results are as positive as we expect we should see orders began flowing in fiscal 2025. Moreover.

Joe Delgado: Moreover, LEA is pivotal to our European expansion strategy, where we're already in talks with potential customers. We plan to start making inroads in Europe within the next 12 to 18 months.

Speaker Change: He is pivotal to our European expansion strategy, where we're already in talks with potential customers. We plan to start making inroads in Europe within the next 12 to 18 months now, let's talk about some of our most exciting opportunities beyond the cinema market, starting with esports, where we've developed a much more refined and focused strategy.

Joe Delgado: Now, let's talk about some of our most exciting opportunities beyond the cinema market, starting with eSports, where we've developed a much more refined and focused strategy. Initially, our eSports initiative with Sandbox aimed at creating the little league of eSports, faced some delays due to Sandbox's extended fundraising efforts. But as a company, we adapted. While Sandbox shifts from fundraising to launching its operations, we've evolved our approach to eSports instead of solely relying on Sandbox's rollout. We began pursuing direct sales to large theater circuits with internal marketing and infrastructure to support eSports leagues independently. This pivot allows us to engage with theaters that are ready to rollout eSport leagues, and we're already in active discussions with several of these theater circuits.

Speaker Change: Initially our esports initiative with sandbox aimed at creating the literally of esports faced some delays due to sandbox extended fund raising efforts, but as a company, we adapted well sandbox shifts from fund raising to launching its operations. We've evolved our approach to esports instead of solely relying on sandbox as rollout we've begun.

Speaker Change: Pursuing direct sales to large theater circuits with internal marketing and infrastructure to support E. Sports leagues independently. This pivot allows us to engage with theaters that are ready to rollout E sport leagues and we're already in active discussions with several of these theater circuits on the sandbox fraud. They are now preparing to launch.

Joe Delgado: On the sandbox front, they're now preparing a launch league play at several sites in Florida and the rest of the country. Likely in early 2025, we see this as a major turning point for their business and an important milestone in our overall strategy. Once these leagues are operational, we anticipate further expansion across the rest of the US, which will significantly boost our esports-related revenues. Since we had zero esports-related sales in fiscal 2024, any revenue generated in fiscal 2025 will be incremental and provide a nice contribution to our bottom line. We're confident that a sandbox ramps up, and as our direct sales strategy takes hold, esports will become a significant revenue driver for MIT in the coming years.

Speaker Change: Replay at several sites in Florida, and the rest of the country likely in early 2025, we see this as a major turning point for their business and an important milestone in our overall strategy. Once these leads are operational we anticipate further expansion across the rest of the U S, which will significantly boost our esports.

Speaker Change: Related revenues since we had zero E sports related sales in fiscal 2020 for any revenue generated in fiscal 2025 will be incremental and provide a nice contribution to our bottom line.

Speaker Change: We're confident that our sandbox ramps up and as our direct sales strategy takes hold esports will become a significant revenue driver for MIP in the coming years also we've already garnered international interest. So we expect this to be a part of our geographic expansion strategy as well in the coming years.

Joe Delgado: Also, we've already garnered international interest, so we expect this to be a part of our geographic expansion strategy as well in the coming years.

Joe Delgado: And now on to our eCADD offering, a truly groundbreaking opportunity that we're all very excited about. The potential here is immense. We're talking about millions of existing stadium and arena seats that could be retrofitted with our technology-infused caddy cup holders, plus an ever-growing pipeline of new build opportunities. What's really exciting about eCADD is that we're just not talking about single product upgrades. We're introducing a suite of smart applications and services designed specifically for stadiums and arenas. Think about it. These cup holders won't just hold drinks. They'll be integrated into the fan experience. With potential to offer everything from mobile ordering to sponsor-driven promotions and advertising, enhancing both the fan experience and venue revenue streams. We've already received tremendous feedback from executives in Major League Baseball and other major sports venues.

Speaker Change: And now onto our <unk> offering.

Speaker Change: Really groundbreaking opportunity that we're all very excited about the potential here is immense we're talking about millions of existing stadium and arena seats that can be retrofitted with our technology infused Caddy Cup holders plus an ever growing pipeline of new build opportunities, what's really exciting about <unk> is that we're just not talking about single product upgrades. We're.

Speaker Change: We're seeing a suite of smart applications and services designed specifically for stadiums and arenas and think about it. These cup holders won't just hold ranks there'll be integrated into the fan experience with potential to offer everything from mobile ordering to sponsor Durbin promotions and advertising enhancing both the fan experience and venue revenue.

Speaker Change: New streams, we've already received tremendous feedback from executives and major League baseball and other major sports venues were now finalizing the technology and designed for prototypes. These prototypes will be key as we began submitting proposals for field testing with select stadiums and arenas. Once we have the prototypes in hand, we will engage even deeper discussions with.

Joe Delgado: We're now finalizing the technology and design for prototypes. These prototypes will be key as we begin submitting proposals for field testing with select stadiums and arenas. Once we have the prototypes in hand, we'll engage even deeper discussions with our target customers and potential partners, with the goal of initiating field tests in 2024. But that's only the beginning. The eCADD platform offers nearly unlimited potential with tens of millions of stadiums and arena seats worldwide. And with that ability to adapt this technology for various sports entertainment venues, we're tapping into potentially a multi-billion dollar market opportunity. We believe eCADD can generate significant high-margin reoccurring revenue as it scales, and the demand for technology-driven fan engagement tools will only continue to grow.

Speaker Change: Our target customers and potential partners with a goal of initiating field tests in 2024.

Speaker Change: But that's only the beginning the caddy platform offers nearly unlimited potential with tens of millions of stadiums and arenas each worldwide and with that ability to adapt this technology for various sports and entertainment venues, we're tapping into potentially a multibillion dollar market opportunity.

Speaker Change: We believe <unk> can generate significant high margin reoccurring revenue as it scales and the demand for technology, driven fan engagement tools will only continue to grow.

Joe Delgado: In summary, despite external industry challenges, we remain focused on our long-term goals and have made significant progress. Our legacy cinema business is a strongly positioned desire, and our new growth initiatives, particularly in emerging markets like eSports and eCADD, are filled with potential. As the industry recovers from recent setbacks, including the Hollywood strikes, we expect our strategies to pay off in a big way. We're still in the early stages, but we're incredibly excited about what's ahead. And we look forward to keeping you updated as we hit these key milestones.

Speaker Change: In summary, despite external industry challenges, we remain focused on our long term goals and have made significant progress our legacy cinema business is strongly positioned as ever and our new growth initiatives, particularly in emerging markets like esports any catty are filled with potential as the industry recovers from recent setbacks, including the.

Speaker Change: Hollywood strikes, we expect our strategies to pay off in a big way, we're still in the early stages, but we're incredibly excited about what's ahead and we look forward to keeping you updated as we get these key milestones with that I. Thank you all and I'll turn it over to Bryan Bryan.

Joe Delgado: With that, I thank you all.

Brian Siegel: And I'll turn it over to Brian. Brian? Thanks, Joe.

Bryan: Thanks, Joe and thank you everyone for attending our earnings call we.

Brian Siegel: And thank you, everyone, for attending our earnings call. We started the year strong with 13% revenue growth in solid profits in Q1. However, the year evolved into a transitional period as revenue flattened, gross margin declined, and non-GAAP losses increased. This shift was largely due to the actor and writer strikes, which impacted the entire industry beginning in our fiscal second quarter. The strikes caused a temporary freeze in customer spending, and even after the resolution, it took time for the box office to recover. With some of our clients taking up to six months to finalize their 2024 budget.

Bryan: We started the year strong with 13% revenue growth and solid profits in Q1, however, the year evolved into a transitional period as revenue flattened gross margin declined in non-GAAP losses increased the shift was largely due to the actor and writer strikes, which impacted the entire industry beginning in our fiscal second quarter.

Bryan: This caused a temporary freeze in customer spending and even after the resolution. It took time for the box office to recover with some of our clients taking up to six months to finalize their 2024 budgets.

Brian Siegel: Thanks.

Brian Siegel: Despite these challenges, we saw encouraging momentum in Q4; revenue grew 10%, reaching 6.3 million. This growth was driven by the completion of a significant project for Alamo Drafthouse. In Q4 million, a 2.3% increase from the prior year. However, growth margin declined by 170 basis points, primarily due to the fulfillment of a large low margin, but high operating margin seed order, as well as lower capacity utilization. For the full year, growth profit decreased by 11.8%, with growth, gross margin down 300 basis points, reflecting changes in product mix and capacity utilization. On the expense side, gap operating expenses told 1.9 million compared to 2.8 million last year.

Bryan: Despite these challenges we saw encouraging momentum in Q4 revenue grew 10%, reaching $6 3 million. This growth was driven by the completion of a significant project for Alamo Drafthouse.

Bryan: Initial orders from our early a products from major theater chains for testing purposes, and purchases related to the technology upgrade cycle for projectors and servers for the full year revenue was flat at $20 million.

Bryan: Gross profit for the fourth quarter was $1 4 million a two 3% increase from the prior year. However, gross margin declined by 170 basis points, primarily due to the fulfillment of a large low margin, but high operating margin seat order as well as lower capacity utilization for the full year gross profit decreased by.

Bryan: 11, 8% with growth gross margin down 300 basis points, reflecting changes in product mix and capacity utilization.

Bryan: On the expense side GAAP operating expenses totaled $1 9 million compared to $2 8 million last year.

Brian Siegel: Gap operating loss was half a million dollars compared to 1.4 million last year. For the full year, our operating loss narrowed to 1.6 million from 2 million last year. Notably, last year results included 1 million and 1 time write-offs, which did not return in fiscal 2024. Gap net loss for Q4 improved to 0.4 million or 4 cents per share compared to 1.3 million or 12 cents per share last year. For the full year, gap net loss and loss per share were 1.4 million and 13 cents, and improvement from 1.8 million and 16 cents per share in fiscal 2023.

Bryan: GAAP operating loss was half a million dollars compared to $1 4 million last year.

For the full year, our operating loss narrowed to $1 6 million from 2 million last year, notably last year's results included $1 million in one time write offs, which did not recur in fiscal 2024.

Bryan: GAAP net loss for Q4 improved to <unk> 4 million or <unk> <unk> per share compared to $1 3 million or <unk> 12 per share last year.

Bryan: Full year GAAP net loss and loss per share were $1 4 million and 13.

Bryan: The improvement from $1 8 million and <unk> <unk> per share in fiscal 2023.

Brian Siegel: On a non-gap basis, Q4 net loss was 0.4 million or 4 cents per share compared to 0.2 million or 2 cents per share last year. For the full year, non-GAAP net loss and loss per share were 1.4 million and 13 cents compared to 0.7 million and 7 cents last year, reflecting the absence of last year's write-offs.

Bryan: On a non-GAAP basis Q4, net loss was 0.4 million or four cents per share compared to 0.2 million or <unk> <unk> per share last year for the full year non-GAAP net loss and loss per share were $1 4 million in 13th.

Bryan: Compared to a <unk> 7 million and seven cents last year, reflecting the absence of last year's write offs.

Brian Siegel: Looking at our balance sheet, we ended the year with 5.3 million in cash and cash equivalents. Despite the industry had wins, we continued to return value to shareholders, repurchasing approximately 758,000 shares during the fiscal year, completing our buyback program with a total of 1 million shares repurchased. Looking ahead to fiscal 2025, it's still mentioned earlier, we proactively took actions to reduce our expense run rate by $600,000 annually, but we expect to realize about half a million of this in fiscal year 25. This included streamlining, compensation, and marketing expenses across all levels of the company. These measures will help us to achieve breakeven at a lower revenue threshold of approximately $21 million, depending on gross margin.

Looking at our balance sheet, we ended the year with $5 3 million in cash and cash equivalents.

Bryan: The industry headwinds, we continue to return value to shareholders repurchasing approximately 758000 shares during the fiscal year, completing our buyback program with a total of 1 million shares repurchased.

Bryan: Looking ahead to fiscal 2025, it's still mentioned earlier, we proactively took actions to reduce our expense run rate by $600000 annually and we expect to realize about half a million dollars of debt in fiscal year 'twenty five.

Bryan: This included streamlining compensation and marketing expenses across all levels of the company. These measures will help us to achieve breakeven and a lower revenue threshold of approximately $21 million depending on gross margin.

Brian Siegel: Additionally, the share buyback program we completed will further enhance our EPS once we achieve profitability.

Bryan: Additionally, the share buyback program, we completed well further enhance our EPS once we achieve profitability.

Brian Siegel: In summary, while the strike impacted the broader industry this year, we remained focused on advancing our growth initiatives, many of which are progressing behind the scenes. For our investors, we are committed to providing updates on milestones that are emerging. Gross strategies unfold, and we will continue to announce any key developments or orders through press releases and earnings calls, as well on X, where we encourage you to follow us at our handle at Moving Image News. Also, we plan to upgrade our antiquated IR site over the next month, so keep an eye out for that. In general, we are feeling better about our prospects heading into the end of the calendar year and plan to accelerate IR activities.

Bryan: In summary, while the strike impacted the broader industry. This year, we remain focused on advancing our growth initiatives many of which are progressing behind the scenes for our investors. We are committed to providing updates on milestones at our emerging growth strategies unfold and we will continue to announce any key developments or orders through press releases and earnings calls as well on X, where we encourage you.

Bryan: To follow us at our handle at moving image News also we plan to upgrade our antiquated IR site over the next month, so keep an eye out for that in.

Joe: In general we are feeling better about our prospects heading into the end of the calendar year and plan to accelerate IR activities, Joe and I will be at LD Micro main event on October 29% to 30 for those attending we encourage you to set up one on one meetings to the conference board or contact me directly and I'll be happy to.

Brian Siegel: Joe and I will be at LD Micro Main Event on October 29th and 30th. For those attending, we encourage you to set up one-on-one meetings to the conference portal or contact me directly, and I'll be happy to participate.

Brian Siegel: Thank you for joining us today, and we look forward to speaking with you again during our next call in November.

Joe: Thank you for joining us today, and we look forward to speaking with you again during our next call in November operator, we are ready for questions. If there are any.

Operator: Operator, we are ready for questions if there are any. Thank you.

Thank you we will now be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad.

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Speaker Change: A confirmation tone will indicate your line is in the question queue. You May press Star two if you like.

Speaker Change: Ooh yourself from the queue for participants using speaker equipment, it may be necessary to pick up the handset before pressing the star.

Operator: But participants use the speaker equipment and may be necessary to pick up the handset before pressing any start queue. One moment, please, as we pull for questions. And there are no questions at this time.

Speaker Change: <unk>.

Speaker Change: One moment, please pull for questions.

Speaker Change: And there are no questions at this time.

Operator: Therefore, we do thank you, and this does conclude today's telephone. You may; we thank you for your participation. You may disconnect your line at this time. Thank you.

Speaker Change: We do thank you and this does conclude today's teleconference. You may we thank you for your participation you may disconnect your lines at this time.

Speaker Change: Okay.

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Speaker Change: Okay.

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Speaker Change: Yeah.

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