Financial Data and Key Metrics Changes - Revenues for Q3 2026 were $16.3 million, an increase from $12.4 million in the previous quarter but a decrease from $40.7 million in the same quarter last year, which included theatrical results from "Terrifier 3" exceeding $20 million [14] - The net loss for the quarter was $875,000, improving by $4.7 million compared to the prior quarter [14] - Adjusted EBITDA for the quarter was $2.4 million, a $6 million improvement from the previous quarter [14] - Direct operating margin improved to 69%, up from 48% in the prior year quarter [8][20] Business Line Data and Key Metrics Changes - The company focused on improving its cost structure and operating margins in its base businesses, achieving a direct operating margin of 69% [8][20] - The acquisitions of Giant Worldwide and IndiCue are expected to significantly enhance revenue and EBITDA, with projected contributions of over $50 million in revenue and $10 million in Adjusted EBITDA for fiscal year 2027 [17][18] Market Data and Key Metrics Changes - The streaming ecosystem saw a monthly unique viewer count of 35.5 million, with SVOD subscribers growing 15% year-over-year to 1.55 million [19] - The content library now exceeds 66,000 total assets, including nearly 58,000 films and episodes, plus over 8,500 podcasts [19] Company Strategy and Development Direction - The company aims to transform into a comprehensive, AI-powered technology services provider for the entertainment industry, leveraging the acquisitions to fill gaps in the market and enhance operational efficiency [6][21] - The focus remains on building a unified, automated architecture for the entire media supply chain, addressing fragmentation in content distribution and monetization [28][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the financial guidance for fiscal year 2027, projecting revenues of $115 million to $120 million and Adjusted EBITDA of $10 million to $20 million [12][17] - The acquisitions are seen as a strategic move to capitalize on the industry's shift towards AI integration and automation, with expectations of significant growth in the post- and media services market [24][25] Other Important Information - The company sold 1.725 million shares of common stock at $2 per share, generating net proceeds of $3.2 million for working capital and general corporate purposes [18] - The integration of Giant has been smooth, with a significant increase in business following the acquisition [11][25] Q&A Session Summary Question: Can you discuss the evolution of IndiCue's business and its revenue concentration? - Management noted that IndiCue's revenue concentration has improved year-over-year, with a focus on building durable relationships with a diverse customer base [33][35] Question: Can you provide an update on Matchpoint and its new customers? - Management indicated that new customers are coming through various needs, and the strategy is to expand services once initial contracts are secured [39][41] Question: What are the anticipated synergies from the acquisitions? - Management expects significant revenue and EBITDA synergies from both acquisitions, with potential for $8 million to $9 million in synergies from IndiCue alone [52][54] Question: How will free cash flow be managed moving forward? - Management highlighted that minimal CapEx is required, allowing free cash flow to be reinvested into growth initiatives rather than dilution [64][66] Question: What is the future of acquisitions for the company? - Management stated that while the focus is on integrating the current acquisitions, they remain open to pursuing additional opportunities that align with their strategic goals [81][83]