Financial Data and Key Metrics Changes - Revenues for Q3 2026 were $16.3 million, up from $12.4 million in the previous quarter but down from $40.7 million in the same quarter last year, primarily due to the absence of theatrical results from "Terrifier 3" which generated over $20 million in the prior year [13] - The net loss for the quarter was $875,000, a $4.7 million improvement over the prior quarter [13] - Adjusted EBITDA for the quarter was $2.4 million, reflecting a $6 million improvement from the previous quarter [13] - Direct operating margin improved to 69%, up from 48% in the prior year quarter [6][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% [6][20] - The acquisitions of Giant Worldwide and IndiCue are expected to significantly enhance revenue streams and profitability, 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 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 through the acquisitions of Giant and IndiCue [5][8] - The strategy focuses on addressing the fragmented nature of content distribution and monetization, leveraging AI to enhance operational efficiency and scalability [21][28] - The market opportunity in post- and media services is projected to grow from $25 billion to $74 billion by 2034, with a shift towards AI-powered workflows [24] 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 [11][17] - The integration of Giant and IndiCue is expected to create significant shareholder value and improve operational efficiencies [18][28] - Management highlighted the importance of building a unified, automated architecture for the entire media supply chain to meet future market demands [29] 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 content acquisition [18] - The acquisitions were financed with convertible notes from long-term shareholders, reflecting strong investor confidence in the company's strategy [17] 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 major clients [33][36] Question: What is the significance of the new customers announced for Matchpoint? - Management indicated that the acquisition of Giant has allowed for expedited access to major studios, enhancing the ability to sell additional Matchpoint services [39][44] Question: What are the anticipated synergies from the acquisitions? - Management expects significant revenue synergies from both acquisitions, with potential for $8 million to $9 million in synergies from IndiCue alone [51][56] Question: How will free cash flow be managed moving forward? - Management emphasized that free cash flow will be reinvested into growth initiatives rather than through dilution, positioning the company for future acquisitions [66] Question: What is the company's future M&A strategy? - Management stated that while the focus is currently on integrating the recent acquisitions, they remain open to pursuing additional opportunities that align with their strategic goals [84][85]