Good day. And welcome to the Precision Optics Reports Fourth Quarter Fiscal Year 2022 Financial Results Conference Call. All participants will be in a listen-only mode. After today’s presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Mr. Robert Blum. Please go ahead, sir.

All right. Thank you all for joining us today for the Precision Optics fourth quarter and fiscal year 2022 conference call for the period ended June 30, 2022. With us on the call representing the company today are Dr. Joe Forkey, Precision Optics’ Chief Executive Officer; and Dan Habhegger, the company’s Chief Financial Officer. At the conclusion of today’s prepared remarks, we will open the call for a question-and-answer session. Today’s conference call is also being webcast with replay capabilities available through the webcast, as well as through the dial-in instructions; the details of both were included in today’s press release. Before we begin with prepared remarks, we submit for the record the following statements. Statements made by the management team of Precision Optics during the course of this conference call may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended, and such forward-looking statements are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements describe future expectations, plans, results or strategies, and are generally preceded by words such as may, future, plan or planned, will or should, expected, anticipates, draft, eventually or projected. Listeners are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events or results to differ materially from those projected in the forward-looking statements, including the risk that actual results may differ materially from those projected in the forward-looking statements as a result of various factors and other risks identified in our filings with the Securities Exchange Commission. All forward-looking statements contained during this conference call speak only as of the date in which they were made and are based on management’s assumptions and estimates as of such date. The company does not undertake any obligation to publicly update any forward-looking statements, whether as a result of the receipt of new information, the occurrence of future events or otherwise. So, with that said, let me turn the call over to Dr. Joe Forkey, Chief Executive Officer of Precision Optics. Joe, please proceed.

Thank you, Robert. And thank you all for joining our call today to discuss our fourth quarter and fiscal year 2022 financial results. Fiscal 2022 was clearly a transformational year for Precision Optics. We advanced a number of programs from our pipeline to production, resulting in strong organic growth for the year and for the fourth quarter in particular, and we completed the acquisition of Lighthouse Imaging to combine two of the industry’s leaders in micro-optics and digital imaging. We have talked for some time about our business strategy based on the idea of engaging with customers at the very early stages of the product development cycle to use our cutting-edge technological capabilities to enable their product requirements. This approach in many cases provides ongoing manufacturing revenue for many years once the product has transitioned from development into production. We have now demonstrated the success of this business strategy with products that are currently in production and range from next-generation cardiovascular endoscopes to otoscopy and spinal surgery devices, as well as defense and aerospace programs. The markets for our products continue to be robust. The impact of pandemic-related restrictions on medical device inventories has largely been resolved and we see existing customers moving back to pre-pandemic sales levels. We also are experiencing a significant increase in the number and size of new program opportunities. We believe this is due in part to the overall growth of the minimally invasive surgical market, but also due to the recognition by potential customers that the breadth and depth of our technical capabilities with POC and Lighthouse now combined as one company is unique and really unmatched in the industry. With a burgeoning production portfolio and a large pipeline that continues to move projects through the development process, I believe we are in a…

The first question will come from Mr. Rick Teller, Investor . Please go ahead, sir.

Yeah. Hi, Joe. A question for you, with the expansion of production on a lot of these new products, how are you doing in terms of lining up the right kind of production labor that you need?

Yeah. Thanks, Rick. That’s a great question. So, generally speaking, everyone knows that the labor market is very tight. I would say that the locations that our operations are in are some locations where the labor market is not quite as tight as it is in other places. It’s still tight, to be sure. But we’re located outside of the major metropolitan areas, although we’re close enough to get to the airports and to draw in technical talent and such, but not right in the middle of it, where the labor shortage is most acute. Having said that, we still do have to work and make an effort to find the right talent. But one of the benefits that we have is that we train all of the assembly folks that join our company. So part of the development process that we go through when we’re going through the engineering process is the design and validation of tools and fixtures that make it a bit easier to manufacture the products that we generally make. And while our technicians are highly talented, they don’t have to come in with specific capabilities or experience in order to be able to contribute to the production that we do. It takes them a week or two to get up to speed. For some things it takes longer. But we basically stage people so that they can start to contribute as quickly as they come in. So all of those things combined has allowed us to be able to keep up with the labor needs that we need and I think we’ll be able to do that even as we move forward.

All right. Good. And one other production question, single-use products, by their nature, they have to be sold at a much lower price point, which presumes some kind of automation. Are you -- to make those things, does that require, let’s call it, standard equipment that you can buy from outside vendors or do you have to kind of create your own equipment?

Yeah. It’s a great comment and great observation and great question. So this is a big part of what I referred to in my comments about learning some of the unique aspects of what’s required to support a single-use program. It’s not solely technical. It also has to do with the financials and economics of single-use, which, as you point out, Rick, have much more stringent price point pressures. So to answer your specific question, virtually all of the tools and fixtures that we use for the single-use programs are designed in-house and are built by us. There may be components that we get off the self. But ultimately, the tools and fixtures are all put together by us, and we go through a very robust validation process to demonstrate that the yields using these tools and fixtures will be very, very high, because, again, with the higher volumes yield is particularly important.

Very good. Thank you.

Thanks, Rick.

This concludes our question-and-answer session. I would like to turn the conference back over to management for any closing remarks. Please go ahead.

Thank you, Operator, and thanks again, everyone, for joining us on the call today. Once again, I will be available in the next couple of days at the Lytham Investor Conference. If folks have additional questions and I’d be happy to talk to everyone at any time. Look forward to speaking with you all soon. Thanks. Have a good night.

The conference is now concluded. Thank you for attending today’s presentation. You may now disconnect.