Algorhythm Holdings Inc (RIME) 2024 Q2 法說會逐字稿

Good afternoon, everyone, and welcome to Singing Machine second-quarter-2024 financial results earnings call.

大家下午好，歡迎參加 Singing Machine 2024 年第二季財務業績收益電話會議。

My name is Savannah, and I will be your operator.

我叫薩凡納，我將是您的接線生。

As a reminder, today's call is being recorded.

提醒一下，今天的通話正在錄音。

We have a brief Safe Harbor, and then we'll get started.

我們有一個簡短的安全港，然後我們就開始。

This call contains forward-looking statements under US Federal Securities Laws.

本次電話會議包含美國聯邦證券法規定的前瞻性陳述。

These statements are subject to risks and uncertainties that could cause actual results to differ materially from historical experience or present expectations.

這些陳述存在風險和不確定性，可能導致實際結果與歷史經驗或當前預期有重大差異。

A description of some of the risks and uncertainties can be found in the reports that we have filed with the Securities and Exchange Commission, including the cautionary statement included in our current and periodic filings.

對一些風險和不確定性的描述可以在我們向美國證券交易委員會提交的報告中找到，包括我們目前和定期提交的文件中包含的警告聲明。

I would like to now turn the call over to Gary Atkinson, company's CEO.

我現在想將電話轉給公司執行長 Gary Atkinson。

Please go ahead.

請繼續。

Thank you.

謝謝。

Good afternoon, ladies and gentlemen.

女士們、先生們，午安。

I want to start off by thanking everyone for taking the time to listen in and participate today on our second-quarter-2024 earnings call.

首先，我要感謝大家今天抽出時間聆聽並參與我們的 2024 年第二季財報電話會議。

I'm joined by Richard Perez, company CFO; Bernardo Melo, Chief Revenue Officer; and Vivek Sehgal, SemiCab's Chief Product Officer.

公司財務長理查德·佩雷斯 (Richard Perez) 也加入了我的行列。貝爾納多·梅洛，首席營收官；和 SemiCab 首席產品長 Vivek Sehgal。

This past quarter was highly unusual for the Singing Machine.

對於 Singing Machine 來說，過去的一個季度非常不尋常。

Normally, we use the second quarter to finalize buying commitments with our retail partners, coordinate upcoming product manufacturing for the holiday season, and planning to ensure retail shelves are fully stocked with karaoke products for the holiday season.

通常，我們會利用第二季與零售合作夥伴敲定購買承諾，協調即將推出的節日產品製造，併計劃確保零售貨架上備有節日卡拉 OK 產品。

This past quarter, we were busy with all of these normal activities.

上個季度，我們忙於所有這些正常活動。

But on top of that, we were deeply entrenched in two new very exciting projects that I'm pleased to discuss on today's earnings call.

但最重要的是，我們深深地專注於兩個非常令人興奮的新項目，我很高興在今天的財報電話會議上討論這些項目。

First, as recently announced, we closed on the acquisition of an AI-powered freight transportation software company called SemiCab, which has the potential to disrupt the global logistics industry.

首先，正如最近宣布的，我們完成了對一家名為 SemiCab 的人工智慧貨運軟體公司的收購，該公司有可能顛覆全球物流行業。

We spent most of the quarter conducting due diligence and negotiating legal structure to perform the acquisition, which closed as an all-stock deal.

我們花了本季的大部分時間進行盡職調查並就執行收購的法律結構進行談判，最終以全股票交易的形式完成。

After we discussed our second-quarter financial results, I'm going to ask Vivek Sehgal, our Chief Product Officer at SemiCab, to share a brief update on this acquisition from his perspective.

在我們討論了第二季度的財務業績之後，我將請 SemiCab 的首席產品官 Vivek Sehgal 從他的角度分享有關此次收購的簡要更新。

Second, we spent much of the quarter deep in progress to advance our automotive initiative for our microphone business.

其次，我們在本季的大部分時間都在深入推進麥克風業務的汽車計劃。

We are very optimistic on the potential for this business and it is rapidly becoming a central focus for growth within the karaoke category.

我們對這項業務的潛力非常樂觀，它正迅速成為卡拉 OK 領域成長的焦點。

Lastly, we are also finalizing our corporate rebranding and hope to share it with all of you shortly.

最後，我們也正在完成我們的企業品牌重塑，並希望盡快與大家分享。

As a company, we have successfully shifted from a single line of business to now a holding company model with the responsibility of managing, funding and growing two very different businesses.

作為一家公司，我們已經成功地從單一業務線轉變為現在的控股公司模式，負責管理、資助和發展兩個截然不同的業務。

As a result, we intend to share a new vision and direction for the company to get back to growth and creating value.

因此，我們打算為公司分享一個新的願景和方向，以恢復成長並創造價值。

Before we discuss these other initiatives, I would like to ask our Chief Financial Officer, Richard Perez, to walk us through the details of our results for operations for the second quarter.

在我們討論這些其他舉措之前，我想請我們的財務長理查德·佩雷斯（Richard Perez）向我們介紹第二季營運績效的詳細資訊。

Go ahead, Rich.

來吧，里奇。

Thank you, Gary.

謝謝你，加里。

I appreciate everyone for taking the time out of their busy schedules to listen in today.

感謝大家今天在百忙之中抽空聆聽。

I'm going to walk through the specifics of our results of operations and try to add a little color and insight into how our business is evolving in the near term from my perspective.

我將詳細介紹我們的營運結果，並嘗試從我的角度對我們的業務在短期內如何發展添加一些色彩和見解。

Net sales for the three months ended June 30, 2024, decreased to approximately $2.440 million from approximately $2.625 million, representing a decrease of approximately $185,000 as compared to the three months ended June 30, 2023.

截至2024年6月30日止三個月的淨銷售額從約262.5萬美元減少至約244萬美元，較截至2023年6月30日止三個月減少約185,000美元。

The 7% decrease was primarily due to lower overall sell-through results during the past holiday season, mostly with our largest customer, Walmart, which, in turn, diminished inventory restocking requirements during the first six months of the calendar year, which is historically off-peak shipping season.

7% 的下降主要是由於上個假期期間的整體銷售結果較低，主要是我們最大的客戶沃爾瑪，而沃爾瑪在該日曆年的前六個月減少了庫存補貨需求，這在歷史上是最低的航運淡季。

Retail, particularly traditional brick-and-mortar retail sales have been challenging for almost two years.

近兩年來，零售業，尤其是傳統的實體零售業一直面臨挑戰。

We have experienced this consistently across all of our major retail relationships and has challenged us to be extremely focused on product mix, product placement and leveraging shelf space to optimize every opportunity to sell efficiently at scale with these best-in-class retailers.

我們在所有主要零售關係中都經歷過這種情況，並要求我們高度關注產品組合、產品佈局和利用貨架空間，以優化每個機會，與這些一流的零售商進行大規模高效銷售。

Gross profit for the three months ended June 30, 2024, decreased to approximately $324,000 from approximately $529,000, representing a decrease of approximately $205,000, 38.8% as compared to the three months ended June 30, 2023.

截至2024年6月30日止三個月的毛利從約529,000美元減少至約324,000美元，較截至2023年6月30日止三個月減少約205,000美元，降幅為38.8%。

Gross margins for the three months ended June 30, 2024 were 13.3% as compared to 20.2% for the three months ended June 30, 2023.

截至2024年6月30日止三個月的毛利率為13.3%，而截至2023年6月30日止三個月的毛利率為20.2%。

Approximately $260,000 of the decrease in gross profit was primarily due to increased sales and excess inventory, which yielded significantly lower margin than current models sold and was offset by a decrease in expenses of approximately $57,000 associated with the miscellaneous logistics costs related to the timing of receipt of new goods.

毛利減少約26 萬美元，主要是由於銷量增加和庫存過剩，導致利潤率顯著低於現有銷售型號，但與收貨時間相關的雜項物流成本相關的費用減少約57,000 美元，抵消了這一影響。

Our focus here has been to aggressively clear older, slower moving inventory to optimize our working capital.

我們的重點是積極清理舊的、流動緩慢的庫存，以優化我們的營運資金。

We were very successful in converting a meaningful component of our older inventory to cash for other purposes, and that has been a focus in the early third quarter as we look to clear virtually all our stagnant inventory during the current retail buying season.

我們非常成功地將舊庫存的重要組成部分轉換為現金用於其他目的，這一直是第三季初的焦點，因為我們希望在當前的零售購買季節清除幾乎所有停滯的庫存。

During the three months ended June 30, 2024, total operating expenses increased to approximately $6.478 million compared to approximately $2.960 million during the three months ended June 30, 2023.

截至2024年6月30日止三個月，總營運費用增至約647.8萬美元，而截至2023年6月30日止三個月約為296萬美元。

This represents an increase in total operating expenses of approximately $3.518 million from the three months ended June 30, 2023.

這意味著與截至 2023 年 6 月 30 日止的三個月相比，總營運費用增加了約 351.8 萬美元。

The increase in operating expenses can be somewhat misleading.

營運費用的增加可能會有些誤導。

Of the overall increase, the vast majority was due to a non-cash write-off of impaired operating lease assets of approximately $3.878 million related to the hospitality lease we exited in New York City.

在整體成長中，絕大多數是由於與我們在紐約市退出的飯店租賃相關的約 387.8 萬美元的減損經營租賃資產的非現金沖銷。

Excluding this one-time event, we actually saw all other operating expenses decreased.

除了這一次性事件之外，我們實際上看到所有其他營運費用都下降了。

In fact, we saw a decrease in seasonal debt reserves of approximately $156,000, a decrease in logistics costs of approximately $124,000 associated with the closing of the warehouse operation and outsourcing and logistics to a third-party logistics company, acceleration of depreciation expense of approximately $130,000 recognized in the prior year on impaired fixed assets associated with the closing of the warehouse.

事實上，我們看到季節性債務準備金減少了約 156,000 美元，與關閉倉庫運營以及向第三方物流公司外包和物流相關的物流成本減少了約 124,000 美元，折舊費用加速增加了約 130,000 美元上一年確認了與關閉倉庫相關的固定資產減損。

Our focus has been and continues to be on running a very tight discretionary operating budget.

我們的重點一直是並將繼續放在運行非常緊張的可自由支配的營運預算上。

The effect of these results yielded a net loss for the quarter of $6.119 million or a loss of $0.95 per share for the second quarter of 2024.

這些結果的影響導致該季度淨虧損 611.9 萬美元，或 2024 年第二季每股虧損 0.95 美元。

This is compared to a loss of $2.460 million or a loss of $0.64 per share for the same period in 2023.

相較之下，2023 年同期虧損 246 萬美元或每股虧損 0.64 美元。

In summary, sales were very much in line with our expectations.

總的來說，銷售量非常符合我們的預期。

Our efforts to closely manage costs were very positive.

我們密切管理成本的努力非常積極。

We improved our balance sheet dramatically, clearing almost $7 million in short-term liabilities.

我們大大改善了資產負債表，清除了近 700 萬美元的短期負債。

We are now in our normal busy season period, and we are very focused on rebuilding liquidity as we push out our seasonal sales orders.

我們現在正處於正常的旺季期間，在推出季節性銷售訂單的同時，我們非常注重重建流動性。

With this, I will turn the call over to our Chief Revenue Officer, Bernardo Melo.

至此，我將把電話轉給我們的首席營收官貝爾納多·梅洛 (Bernardo Melo)。

Thanks, Richard.

謝謝，理查。

Thanks for turning over the call.

感謝您轉接電話。

Thank you, everybody, for listening today.

謝謝大家今天的收聽。

I just wanted to go through some some of the highlights coming up with this holiday season.

我只是想回顧一下這個假期的一些亮點。

As Richard has mentioned, there has been some redefining of shelf space at retail.

正如理查德所提到的，零售業的貨架空間已經被重新定義。

Some of our major partners are looking to consolidate some of the shelf space.

我們的一些主要合作夥伴正在尋求整合一些貨架空間。

Fortunately for us, we are still players with each of those retailers.

對我們來說幸運的是，我們仍然是這些零售商的參與者。

But we -- towards the end of my conversation, I'll highlight some of the changes that we're making internally to capitalize on some of the retail changes.

但在談話即將結束時，我將重點介紹我們在內部做出的一些改變，以利用一些零售業的變化。

But for us, moving forward, we are -- as I mentioned before in previous calls, we are looking to continue to grow our WiFi-enabled models, our digital offerings, which have immediate back-end revenue through our app and our partnership with Stingray Music.

但對我們來說，向前邁進，正如我之前在之前的電話會議中提到的，我們希望繼續發展我們的支援 WiFi 的型號、我們的數位產品，這些產品透過我們的應用程式以及我們與黃貂魚音樂。

This year, we are introducing a brand-new WiFi model, which you will find at Sam's Club.

今年，我們推出了全新的 WiFi 型號，您可以在山姆會員店找到它。

They partnered with us in the electronic department, Normally, we were in the toy department.

他們在電子部門與我們合作，通常我們在玩具部門。

We're still in the toy department with two different SKUs, but now we are also entering the electronic department at a higher price point with a WiFi offering.

我們仍然處於玩具部門，擁有兩種不同的 SKU，但現在我們也以更高的價格進入電子部門，並提供 WiFi 產品。

This model is brand new.

這個型號是全新的。

It's going to be directly tied in with our app.

它將直接與我們的應用程式綁定。

We've also included other music services as well with Apple Music, Spotify, Pandora and Amazon Prime along with YouTube, making the item that much more attractive to consumers.

我們還納入了其他音樂服務，包括 Apple Music、Spotify、Pandora、Amazon Prime 以及 YouTube，使該產品對消費者更具吸引力。

Now, they're able to interact with our product, with our digital product app.

現在，他們可以透過我們的數位產品應用程式與我們的產品互動。

And also, if they have their subscription already currently, they're also able to interact with that as well.

而且，如果他們目前已經訂閱，他們也可以與之互動。

Costco is carrying it for the second year, and then we're also deploying it to the rest of dotcom, whether it's target.com, Amazon, Best Buy, and then our partners in Canada with Best Buy, Walmart and others.

Costco 第二年推出了它，然後我們也將其部署到其他網路公司，無論是 target.com、亞馬遜、百思買，還是我們在加拿大的合作夥伴百思買、沃爾瑪和其他公司。

And we're also rolling this out to Costco UK, Costco Australia.

我們也將這項服務推廣到英國 Costco 和澳洲 Costco。

So our offering for the WiFi model is definitely expanding, and we're looking for that to be the future going forward.

因此，我們的 WiFi 型號產品肯定會不斷擴展，我們希望這成為未來的發展方向。

For our traditional model, you'll still see them in most retailers.

對於我們的傳統模式，您仍然會在大多數零售商處看到它們。

You'll still have section in Walmart where you will find about four feet of space with product that's continuing through the holidays.

您在沃爾瑪仍然有一個區域，您會發現大約四英尺的空間，裡面有假期期間持續供應的產品。

This season, Sam's Club is also carrying some of our traditional (technical difficulty) not going away.

這個季節，山姆會員店還帶著我們的一些傳統（技術難度）沒有消失。

It's becoming a more promotional, more aggressive price points, but that's still going to continue during this holiday season.

它正在變得更加促銷、更加激進的價格點，但在這個假期期間這種情況仍將持續。

We also are continuing our foray into the direct-to-consumer model.

我們也繼續進軍直接面向消費者的模式。

We just recently launched our TikTok store shop with four concentrated items in there.

我們最近剛推出了 TikTok 商店，裡面有四種集中的商品。

That has gone very well so far.

到目前為止一切進展順利。

We're starting to allocate some of our marketing dollars more towards the TikTok shop and also with the Meta platforms, resulting in higher sales in those platforms and also online in our own singingmachine.com.

我們開始將一些行銷資金更多地分配給 TikTok 商店和 Meta 平台，從而在這些平台以及我們自己的 singmachine.com 上實現更高的銷售額。

We also successfully launched our Sesame Street Karaoke Plush line.

我們也成功推出了芝麻街卡拉 OK 毛絨系列。

That's going to be launching with Amazon and all the dotcom.

這將與亞馬遜和所有網路公司一起推出。

You could go online now and see them.

現在您可以上網查看它們。

We have three items coming out, Elmo, Abby and Cookie Monster under that line, and we'll be looking to expand it in 2025.

我們在該系列下推出了三款產品：Elmo、Abby 和 Cookie Monster，我們希望在 2025 年對其進行擴展。

And then finally, one of the things I want to emphasize is moving forward, we've identified that retail shelf is always a challenge.

最後，我想強調的一件事是向前邁進，我們發現零售貨架始終是一個挑戰。

We want to create -- we want to reduce the number of offerings that we're going to be doing.

我們想要創造——我們想要減少我們將要做的產品的數量。

So come 2025, we're going to be introducing mostly strictly WiFi-enabled models.

因此，到 2025 年，我們將推出大部分嚴格支援 WiFi 的型號。

Those have been working very well for us.

這些對我們來說非常有效。

We've been receiving a lot of good feedback for us from consumers on those models.

我們從消費者那裡收到了很多關於這些型號的良好回饋。

And with our partnership with Stingray, we're going to be launching some new technologies that I'm sure Gary will get into in the near future.

透過與 Stingray 的合作，我們將推出一些新技術，我相信 Gary 將在不久的將來涉足這些技術。

But we will be definitely aligned with that strategy moving forward.

但我們肯定會繼續遵循這項策略。

So with that being said, Gary, I'll turn it back over to you.

話雖這麼說，加里，我會把它轉回給你。

Perfect.

完美的。

Thanks, Bernardo.

謝謝，貝爾納多。

That's actually a perfect segue into the next part of the call where I want to focus on some of the new emerging automotive and connected TV opportunities that we have within Singing Machine.

這實際上是電話會議下一部分的完美延續，我想專注於我們在 Singing Machine 中擁有的一些新興汽車和連網電視機會。

So as many of you may not know, there is a rapidly growing interest in bringing Karaoke microphone devices to the in-car entertainment offering.

正如你們許多人可能不知道的那樣，人們對將卡拉 OK 麥克風設備引入車內娛樂產品的興趣正在迅速增長。

So we had previously debuted this technology at the Consumer Electronics Show earlier this year, and we did see tremendous interest from many major OEM automotive brands for this type of a microphone integration.

因此，我們之前在今年早些時候的消費電子展上首次推出了這項技術，我們確實看到許多主要 OEM 汽車品牌對這種類型的麥克風整合表現出極大的興趣。

And I'll remind everyone, Singing Machine was the first company to bring Karaoke microphones to the car.

我要提醒大家的是，Singing Machine 是第一家將卡拉 OK 麥克風引入汽車的公司。

This is through our successful Carpool Karaoke collaboration that we launched back in 2017.

這是我們於 2017 年推出的共乘卡拉 OK 合作的成功成果。

And as further proof of the market demand for Karaoke microphones in the car, earlier this month, Tesla just announced that they are introducing Karaoke microphones to all of their Tesla models in the North American market.

而為了進一步證明車內卡拉 OK 麥克風的市場需求，本月早些時候，特斯拉剛剛宣布，他們將在北美市場的所有特斯拉車型中引入卡拉 OK 麥克風。

And I think as most people see as Tesla moves, the industry tends to follow.

我認為，正如大多數人所看到的，隨著特斯拉的行動，整個產業也往往會效仿。

And through our strategic relationship with the Stingray Group, we are now at the forefront of partnering with many major automotive brands that are seeking to bring Karaoke mics into the car embedded directly into the in-vehicle infotainment system, which is where they're currently now accessing Stingray's Karaoke content services.

透過我們與 Stingray Group 的策略關係，我們現在處於與許多主要汽車品牌合作的最前沿，這些品牌正在尋求將卡拉 OK 麥克風直接嵌入到車載資訊娛樂系統中，這正是他們目前的目標現在訪問Stingray 的卡拉OK 內容服務。

So we see the connected microphone as a quickly growing segment.

因此，我們認為聯網麥克風是一個快速成長的領域。

It's nice because it doesn't cannibalize our existing retail business, and it takes advantage of the growing demand to provide different forms of entertainment within the car.

這很好，因為它不會蠶食我們現有的零售業務，而且它利用不斷增長的需求在車內提供不同形式的娛樂。

Secondly, for the TV market, OEMs have been actively seeking to grow their TV app services offerings and to aggregate and unify multiple devices throughout the house into one single touch point.

其次，對於電視市場，原始設備製造商一直在積極尋求發展其電視應用服務產品，並將整個家庭的多個設備聚合和統一到一個接觸點。

So for Karaoke, this means the opportunity to take advantage of the big screen TV and the sound systems that most people have in their homes and converting them into a fully featured Karaoke experience.

因此，對於卡拉 OK 而言，這意味著有機會利用大多數人家中擁有的大螢幕電視和音響系統，並將其轉變為功能齊全的卡拉 OK 體驗。

Integral to this entire experience is the Karaoke microphone.

卡拉 OK 麥克風是整個體驗不可或缺的一部分。

So moving forward, we see our business model shifting rapidly more towards integrated microphone devices as opposed to being so heavily reliant on standalone Karaoke systems.

因此，展望未來，我們看到我們的業務模式正在迅速轉向整合式麥克風設備，而不是嚴重依賴獨立的卡拉 OK 系統。

We're excited about this shift because we believe we can transform our legacy business into a more technology-driven predictable year-round business.

我們對這一轉變感到興奮，因為我們相信我們可以將我們的傳統業務轉變為技術驅動的、可預測的全年業務。

This new model is very asset light, very human capital light, but yields much higher margins.

這種新模式非常輕資產、非常輕人力資本，但利潤率高得多。

This should enable us to drive costs down throughout our legacy Karaoke business, while boosting growth and bottom line profitability.

這將使我們能夠降低整個傳統卡拉 OK 業務的成本，同時促進成長和底線獲利能力。

So at this point of the call, I would like to introduce Vivek Sehgal, SemiCab's Chief Product Officer.

因此，在這次電話會議上，我想介紹 SemiCab 的首席產品長 Vivek Sehgal。

Vivek is one of the two key visionaries, along with Ajesh Kapoor, it's founder and President.

維韋克（Vivek）是兩位重要的遠見者之一，另一位是該公司的創始人兼總裁阿傑什·卡普爾（Ajesh Kapoor）。

So together, were instrumental in identifying the opportunity in creating a core technology that has become SemiCab's artificial intelligence-driven platform.

因此，我們共同努力，發現了創建核心技術的機會，該技術已成為 SemiCab 的人工智慧驅動平台。

At this time, I'd like to turn the call over to Vivek.

此時，我想將電話轉給 Vivek。

Thank you, Gary.

謝謝你，加里。

I appreciate the opportunity to speak with everyone today.

我很高興今天有機會與大家交談。

I want to take a minute and share why we started SemiCab.

我想花一點時間分享我們創辦 SemiCab 的原因。

The transportation industry is very fragmented and pretty slow in adopting technology to solve its efficiency challenges.

交通運輸產業非常分散，在採用技術來解決效率挑戰方面速度相當緩慢。

On average, one in every three miles run is empty.

平均而言，每跑三英里就有一英里是空的。

That creates unnecessary costs and carbon emissions that the whole industry has to bear.

這造成了整個產業必須承擔的不必要的成本和碳排放。

At SemiCab, we are tackling this inefficiency headson.

在 SemiCab，我們正在解決這個低效率的問題。

We are an award-winning technology company, and we are solving freight at scale using dynamic AI technology that optimizes transportation on demand and in real time.

我們是一家屢獲殊榮的科技公司，我們正在使用動態人工智慧技術大規模解決貨運問題，該技術可按需即時優化運輸。

Next, I want to share a little on the rationale adjacent I had for pursuing the transaction that led to our joining the Singing Machine team in early July.

接下來，我想分享我進行交易的理由，該交易導致我們在 7 月初加入 Singing Machine 團隊。

For Ajesh and myself, we have worked together for many years, developing critical software for some of the largest players in the logistics space.

對於 Ajesh 和我自己來說，我們已經合作多年，為物流領域的一些最大的參與者開發關鍵軟體。

In 2018, we launched SemiCab to address the inefficiencies that we saw going unaddressed for many years in the logistics industry in general.

2018 年，我們推出了 SemiCab，以解決物流行業多年來普遍存在的效率低下問題。

From 2018 to late 2021, we devoted most of our efforts to building the technology and getting early versions of our solutions into live pilot environments where we could test our models and gain critical empirical data as well.

從 2018 年到 2021 年底，我們投入了大部分精力來建立技術並將解決方案的早期版本引入即時試點環境，在其中我們可以測試我們的模型並獲得關鍵的經驗數據。

Our models were very encouraging and client adoption begin to ramp up in the US after COVID.

我們的模型非常令人鼓舞，在新冠疫情之後，美國的客戶採用率開始上升。

During one of the industry events that we were attending in India, we were unexpectedly presented an opportunity to help launch the National Digital Freight Exchange in India.

在我們參加印度的一場產業活動期間，我們意外地獲得了幫助在印度推出國家數位貨運交易所的機會。

This was, in my mind, a once in a lifetime opportunity, roughly 35 out of the Fortune 1000 global industry leaders came together, pooling almost $1.5 billion worth in shipping spend annually into one common network of data.

在我看來，這是千載難逢的機會，《財星》1000 強中的全球產業領導者中約有 35 家齊聚一堂，將每年價值近 15 億美元的運輸支出匯集到一個公共數據網路中。

Sam was involved from day one.

薩姆從第一天起就參與其中。

And now, we are an exclusive partner for this organization.

現在，我們是該組織的獨家合作夥伴。

We launched a pilot in India that went extremely well, beginning in the second quarter of 2023, and we quickly realized that the scale of this opportunity was huge.

我們從 2023 年第二季開始在印度啟動了一項試點，進展非常順利，我們很快就意識到這個機會的規模是巨大的。

We knew that there was almost no easy way for us to financially support our financial growth expanding into India.

我們知道，要在財務上支持我們向印度擴張的財務成長，幾乎沒有簡單的方法。

As a US-based startup, Ajesh and I explored many possible avenues.

作為一家美國新創公司，Ajesh 和我探索了許多可能的途徑。

We talked to the VCs.

我們與創投家進行了交談。

We saw the SPAC market improved and the process for the reverse merger is very expensive, time consuming and uncertain.

我們看到SPAC市場有所改善，反向併購的過程非常昂貴、耗時且不確定。

The opportunity to seamlessly join a Nasdaq-listed company and gain access to the efficient capital as we execute our business model just made tremendous sense.

當我們執行業務模式時，無縫加入納斯達克上市公司並獲得高效資本的機會非常有意義。

Today, we are 100% focused on moving forward.

今天，我們百分之百專注於前進。

We see excellent growth opportunities in both the US and the India markets.

我們在美國和印度市場都看到了極佳的成長機會。

Our clients are eager to see us expand our relationships, and we anticipate strong growth.

我們的客戶渴望看到我們擴大我們的關係，我們預計會有強勁的成長。

We are also being asked to expand our service model into additional geographies, including the Middle East, North Africa, East Asia.

我們也被要求將我們的服務模式擴展到其他地區，包括中東、北非、東亞。

Our growth opportunities are exciting and we believe SemiCab has the great potential to grow for many years.

我們的成長機會令人興奮，我們相信 SemiCab 具有多年成長的巨大潛力。

Both Ajesh and I are pleased to be a part of the Singing Machine game as it rebrands and expand its business model.

Ajesh 和我都很高興能成為 Singing Machine 遊戲的一部分，因為它正在重塑品牌並擴展其商業模式。

We look forward to sharing periodic updates as we focus on driving growth within this part of the company's future growth.

我們期待分享定期更新，因為我們專注於推動公司未來成長的這一部分的成長。

Gary, back to you.

加里，回到你身邊。

Perfect.

完美的。

Thank you, Vivek.

謝謝你，維韋克。

I appreciate the updates on that.

我很欣賞這方面的更新。

So in closing, I just wanted to address, I think, what is most likely the most common question that I get from investors since we announced the SemiCab acquisition back in July.

因此，最後，我想回答一下自 7 月我們宣布收購 SemiCab 以來，我從投資者那裡得到的最常見問題是什麼。

And the number one question I've been receiving is why would a Karaoke company buy an AI software company?

我收到的第一個問題是卡拉 OK 公司為什麼要收購人工智慧軟體公司？

And I've heard it time and time again, people say, well, there's no synergies there.

我一次又一次地聽到人們說，好吧，那裡沒有協同效應。

And so, my response is relatively simple.

所以，我的回答相對簡單。

I see my job is to create shareholder value.

我認為我的工作是創造股東價值。

And as a CEO, I need to be creative.

作為首席執行官，我需要具有創造力。

I need to uncover value and I need to look for ways to grow the business.

我需要發現價值，需要尋找發展業務的方法。

And I think for a lot of our long-time shareholders for the last few years, I think you've all seen, we've seen that the legacy Karaoke business has watched its retail presence come under a significant amount of pressure, and I don't see these challenges going away any time in the short term.

我認為，對於過去幾年我們的許多長期股東來說，我想你們都已經看到，我們已經看到傳統的卡拉 OK 業務已經看到其零售業務承受著巨大的壓力，而且我短期內這些挑戰不會消失。

As a result, we are actively reinventing ourselves and our core business.

因此，我們正在積極重塑我們自己和我們的核心業務。

We're pivoting into new markets that integrate Karaoke into the automotive space and into the smart TV category, which requires a lot more innovative technology and fortunately has much deeper moats around both of those businesses.

我們正在轉向將卡拉 OK 融入汽車領域和智慧電視類別的新市場，這需要更多的創新技術，幸運的是，圍繞這兩個業務都有更深的護城河。

But with that being said, SemiCab has presented a very compelling opportunity to potentially disrupt almost $1 trillion global freight industry and I'll touch on something Vivek said earlier.

但話雖如此，SemiCab 提供了一個非常引人注目的機會，有可能擾亂價值近 1 兆美元的全球貨運業，我將談談 Vivek 之前所說的一些內容。

Today, traditional freight transportation, and in particular, digital freight brokers, they operate in a broken industry that is highly siloed and very inefficient where, on average, one out of every three miles that a truck is on the road, it's empty.

如今，傳統貨運，特別是數位貨運經紀人，他們在一個高度孤立且效率非常低下的破碎行業中運營，平均而言，道路上每三英里的卡車都是空的。

And this massive inefficiency leads to annually over $900 billion in wasted freight expenses.

這種巨大的低效率導致每年超過 9,000 億美元的貨運費用浪費。

Over 140 billion empty miles that a truck is on the road leading to increased road congestion and unnecessary CO2 emissions.

卡車在路上行駛的空車里程超過 1,400 億英里，導致道路擁堵加劇和不必要的二氧化碳排放。

SemiCab has the technology to solve that inefficiency in the market.

SemiCab 擁有解決市場效率低下問題的技術。

And they've shown us that they have successfully attained 90% efficiency, which is to say they have shown that they can reduce the number of empty miles from one out of every three miles empty to only 1 out of every 10 miles empty.

他們向我們展示了他們已經成功達到了 90% 的效率，也就是說他們展示了他們可以將空駛里程數從每 3 英里空駛一英里減少到每 10 英里空駛僅 1 英里。

So as we embark to change the company's narrative and to tell this story through a broader audience, we see SemiCab as having an opportunity to create much higher floor value for our company very quickly and at levels that are meaningfully higher than where we are today.

因此，當我們開始改變公司的敘述並透過更廣泛的受眾講述這個故事時，我們認為 SemiCab 有機會非常迅速地為我們公司創造更高的底值，並且其水平明顯高於我們今天的水平。

As such, we felt compelled to add SemiCab into our corporate portfolio and we will continue to openly evaluate opportunities to grow the business moving forward.

因此，我們覺得有必要將 SemiCab 添加到我們的公司產品組合中，並且我們將繼續公開評估未來發展業務的機會。

I do understand and realize that this is not a standard approach, particularly in the small-cap investment space.

我確實理解並意識到這不是標準方法，特別是在小型股投資領域。

I believe that with the general headwinds that are facing small companies today, taking a bold innovative approach in the face of adversity should hopefully give us a better chance to unlock value for everyone.

我相信，鑑於當今小公司面臨的普遍阻力，在逆境中採取大膽的創新方法應該有望為我們提供更好的機會為每個人釋放價值。

So I thank everybody for your time today.

我感謝大家今天抽出時間。

We look forward to providing updates soon on the progress of both business segments.

我們期待盡快提供有關這兩個業務部門進展的最新資訊。

I want to thank everybody for your time and interest today.

我要感謝大家今天的時間和興趣。

That concludes my prepared statements.

我準備好的發言就到此結束。

I'll turn it back over to the moderator.

我會把它轉回給主持人。

Thank you, all.

謝謝大家。

And this will conclude today's conference.

今天的會議到此結束。

Thank you for your participation, and you may now disconnect.

感謝您的參與，您現在可以斷開連接。