Good afternoon, everyone, and thank you for participating in today’s conference call to discuss Super League Gaming’s Financial Results for the Fourth Quarter and Full Year Ended December 31, 2019. Joining us today are Super League’s President and CEO, Ann Hand; and CFO, Clayton Haynes. Following their remarks, we’ll open the call for your questions. Before we go further, please take note of the company’s Safe Harbor statement within the meaning of the Private Securities Litigation Reform Act of 1995. The statement provides important cautions regarding forward-looking statements. The company’s remarks during today’s conference call will include forward-looking statements. These statements, along with other information presented does not reflect historical fact, are subject to a number of risks and uncertainties. Actual results may differ materially from those implied by these forward-looking statements. Please refer to the company’s recent earnings release and to the company’s reports filed within the Securities and Exchange Commission for more information about the risk and uncertainties that could cause actual results to differ. I would like to remind everyone that this call will be available for replay through March 19, 2020, starting at 8:00 p.m. Eastern Time tonight. A webcast replay will also be available via the link provided in today’s press release as well as on the company’s website at www.superleague.com. Now, I would like to turn the call over to the President and CEO of Super League Gaming, Ann Hand. Ann?

Good afternoon, and thank you for joining us today. This afternoon I will review our accomplishments in the fourth quarter and for the full year 2019, layout a strategic roadmap for 2020 and then handed over to Clayton to review our financials. The overall headline for 2019 is that we significantly outperformed the KPI goals we laid out in January, 2019. Setting ourselves up for a strong 2020 focused on accelerated revenue growth. We are ahead of our plan and ready to share more data to keep you more informed about how this will play out. 2019 was a transformational year for Super League in so many ways, and not just because we went public in February. It was transformational, because we’ve put into place the building blocks for our two primary revenue sources; direct to consumer revenues or gamer monetization and sponsorship in advertising revenue, the monetization of our content. But before I go into that, I’d like to make a comment about the Super League business model and how it plays into the recent world climate. Gaming is now the largest category of entertainment. It’s bigger than television. It’s about three times the size of the global film box office, and almost seven times larger than digital music. And gaming has proven itself to be fairly recession-proof, in times of belt tightening, it is the smaller affordable luxuries that endure. We have all seen the impact on travel and large of them over the last few weeks, but with Super League you don’t need to get on a plane or gather into a big stadium. We are all about bridging local gamers and gameplay, staying close to home and with people you know. To that end, we have seen various engagement metrics increase over the last few weeks,…

Thank you, Ann. Good afternoon everyone and thank you for joining us today. Overall from a financial statement standpoint, fiscal 2019 saw a modest increase in revenues year-over-year, a decrease in cost of revenues for our digital and physical experiences and the continued emphasis on operational control that excluding the impact of the cost of being a public company allowed us to maintain an operational cost structure relatively in line with our pre-IPO structure. Along these lines in 2020, we anticipate reallocating a higher percentage of our OpEx to our sales and marketing function to focus on monetization as we ramp revenues in future periods while maintaining overall OpEx levels relatively consistent with 2019 levels. Taking a look then at our fourth quarter and year-end 2019 financial results, as summarized in our earnings release filed earlier today, fourth quarter 2019 revenues were $262,000 compared to $407,000 for the fourth quarter of 2018. The decrease was primarily driven by fluctuations in the timing of brand partner activations and the recognition of related revenue from quarter-to-quarter. For the full year 2019, revenues increased approximately 4% to $1.1 million, up from $1 million for the full year 2018. Content related revenues, which includes brand sponsorships of our owned and operated properties and more customized brand partner programs, traditional advertising and third-party content licensing comprised approximately 97% of revenues for fiscal year 2019 as compared to 87% in fiscal year 2018 and increased 16% year-over-year. Direct to consumer revenues comprised of our legacy model of charging ticketing fees for our digital and physical experiences, decreased 76% year-over-year due to a strategic decision to hold a higher number of free to play events during fiscal year 2019, consistent with our strategic focus on increasing the volume of new gamers and spectators introduced into our customer…

Thanks, Clayton. It’s been just over one year since Super League’s IPO, yet our progress has exceeded our expectations. As I’ve stated before, I truly believe the transparency and positive sense of urgency that comes from being a public company create an added layer of focus and the results are evident and our rapidly growing audience, player base, global venue network footprint and game title portfolio. And now it’s time to prove the revenue opportunity this foundation provides. Our focus is clear. Our platform connects the deeply engaged, passionate audience of local competitive gamers to each other and to their hometown venues cannot just compete but share their content around the love of the game. This establishes Super League as a software and media backbone for bringing amateur local esports to scale. Our point of differentiation has always been while gamers or the games are digital, our players are humans. And with that, Clayton and I will take any questions you have. Operator?

[Operator Instructions] Your first question comes from the line of Mike Latimore from Northland Capital Markets. Your line is now open.

This is Pavan on for Mike Latimore. I have two questions. The first one is what was the platform-as-a-service and a brand sponsorship contribution to fourth quarter revenue?

The contribution – I’m going to grab that for you, one second here. If you can ask your second question, I’ll get that number here in a second.

Yes. Second one is like what are the key features you want to add to your technology platform this year?

So first just a little context is Clayton pulling up the specific numbers. First of all, on platform-as-a-service. Platform-as-a-service is one way that game publishers and brands engage with us. And it’s where they actually ask us to design something very unique for them. So right now, ELC is running a Logitech CS:GO League. That was something where Logitech picks the game titles, and we were able to give them some flexibility. So it works in addition to our standard set of programming. So just for everyone’s kind of context, that’s what we are talking about, it’s still gameplay and it’s still players that come into the Super League system, they register with us, they push all their gameplay content through us. But it is a game league that has been bespokely designed for sponsors needs. And then I’ll answer your technology question, but first, Clayton, do you want to…

Yes, so for the fourth quarter of 2019, $97,000 of the $262,000 was related to a platform-as-a-service. I am sorry, fourth quarter of 2019.

Yes. Thank you.

As far as the new technology advancements for the year, I alluded a little bit to him. We have started with this very specific smaller subset of PC gamers and these great North America venues that are powered by ggCircuit, our software partner. And these are, PC gamers are much more competitive gamers. They are spending a lot of time together and are the first most obvious group of people who really want to participate in competitive leagues and structures. And so we by intention started the launch of Prime focused on that audience. There’s really a couple of ways that we continue to grow. One is that we grow across other types of gaming platforms. So having offers that speak to the console gamer or to the gamer who likes to competitively game using their mobile phones. So that’s expanding into more platforms. The second way is that in some ways we’ve already done this with our digital channels is going beyond gameplay. When you look at our digital channels right now Framerate is where players celebrate in the afterglow – after the game has ended. They’re uploading their highlight reels and they’re getting attention for their great place. No different than you go in the locker room after and kind of celebrate kind of the great plays of the game. Equally, we started to think about, well, what are the other components that happened before gameplay, after gameplay? What are the ways that we can help our gamers continue to engage with each other even when they’re not in the game itself, whether they’re at one of their hometown venues or they’re at home. So, when I talk about the introduction this year of a mobile app, it’s really speaking to a way that we could start to be more central into the competitive players’ life around all things around the gameplay. And that means we’re connected to them everywhere they are, wherever their phone is, we’re right there with them.

Got it. Thank you.

Your next question is from Mark Argento from Lake Street Capital. Please go ahead.

Hey guys. I’m just wanted to see if you had any thoughts on the coronavirus and how it might positively or negatively impact your business?

Yes, Mark, I think you were having a little trouble getting logged in earlier and I did kind of address it right up front. One of the things that we’ve often heard and seen evidence of historically is the way that gaming is somewhat resilient to economic downturns. And in a way, as I alluded to in my earlier words, it’s because it’s kind of one of the smaller affordable luxuries, right? When you’re not able to take big trips and do those more expensive kinds of ways to entertain yourself. And given the gaming is now bigger than TV and much bigger than the film box office. This is the primary form of entertainment that’s highly accessible and we think will continue to thrive when we’re being faced with so much other kind of health and economic challenge. We’ve seen on our digital portals and increase of activity in the last three weeks, which I think really speaks to that. So very specifically, as I mentioned earlier, our Minehut gaming portal, which is a 24/7 gaming portal, but it also has a social kind of Facebook component to it. We’ve seen a 25% increase on average across all day parts. So that’s pretty healthy. We’re also reaching, over the weekend, we reached 6,550 concurrence. So that means 6,550 players simultaneously playing together. And we just had another record, I was told as I was leaving the office yesterday. So, we expect over the weekend we’re going to continue to set new records there.

That’s helpful. In terms of your kind of venture, I mean Chinese venture with Wanda, I believe, anything to report there in terms of furthering that relationship in any kind of more plans that have been kind of made and any idea in terms of kind of when you could launch with – into some of their theaters?

Yes. No. It’s a great question. When we announced that operating agreement, it’s a real agreement, right. And it’s a real commitment to bring dedicated esports spaces across their Wanda theater footprint, which is about 700 plus theaters. However, we always expected that we would spend the first half of this year doing product market fit testing. That we would talk about, well, what is the right game title to launch? The biggest mobile game there is a game mobile Tencent called Honor of Kings. So, that could be a starting point. And because of that, we knew that there would be a period of time where working with the game publishers with Wanda and all the expertise we have from running thousands of experiences that we would craft what is the right rollout strategy for China? What do the events look like? What game titles are we going to focus on? And because of all of that and baking that into our planning, we had no intentions of formally launching in China until the second half of the year. So we are actually – we haven’t at this point had any delay. And our current plan for rollout because we had that buffer time built in to do what we thought was right and really build the right go to market strategy with them.

Great. And then last one for me. On the capital side, any kind of preliminary thoughts, I know you had mentioned. Obviously, we’ll need some capital look at strategic versus financial and any kind of any plans, any conversations and from a strategic perspective. And what are your thoughts on kind of when you need to go to market?

Yeah. As you kind of highlighted in our prepared remarks, yes, we certainly, the Board is looking at a number of opportunities and strategic play would be something, some opportunities there that we’re taking a look at. Currently at this point in time, there’s nothing definitive. And so we’re not kind of able to speak to anything defensive at this time. But we’re looking at a number of alternatives on the core to updating you all once we have something definitive to before.

As we’ve proven historically, we’ve enabled to engage with commercial partners and converted them into strategic they’ve seen the benefit of our business. And so, just like the fact that we’re very fortunate to have investors like Logitech and Cinemark Theatres, we really that’s our top priority is to continue to look for ways to bring more capital into the company that also accelerate our commercial strategy.

Great. Thank you.

Your next question is from Allen Klee from National Securities. Please go ahead.

Hi. You laid out kind of what the size of the advertising revenues could potentially be. The question I have is, how do you think about how long it could take until you’ll be at the point where you think you’ve ramped up enough to be selling the amount of advertising that you’ll be at the maximum amount you hope to reach?

Yes, I mean that’s been the real kind of important thing. There were a few activities we did in late 4Q. We brought in an expert woman who is to run sales at IGN and the West Coast sales team for Twitch to independently help us evaluate the size of our ad inventory plus identify additional opportunities for ad inventory. We then also went through an independent exercise of repricing it. Although, it validated that we do have a very premium kind of CPM as we’ve talked about. And then we also have used her help to recruit our sales team. So we now have an exceptional Director of Sales, Albert Briggs, who literally starting January 1, started pulling together the sales narrative and going out to a whole different host of media buyers with his 15 years plus experience to start to sell against that inventory. So we have some exciting things in the pipeline that hopefully we’ll be able to announce soon. And I think what you’ll see is the trend I see in the pipeline looks right is that the deal sizes are increasing too. And I think that really goes back to the breadth and depth of reach we now have between the global venue network, the greater critical mass we have in digital viewers and physical players.

Maybe just following up, do you think that by the end of 2020, you would be at a point where you would be selling the amount of advertising that you hope to reach?

I believe that in 2020s that we’ll see a large improvement in the revenue generated from advertising in 2020.

Great. And then on the subscription side, you mentioned you have 500 customers. The question, are they all related to ggCircuit’s and will you consider in 2020 potentially expanding the subscription business model outside of the ggCircuit’s related people?

Yes, I’d say a kind of two things to that. It was absolutely by intention that we’ve wanted first to target those PC gamers in those gaming centers. And those are we access those players through our integration with ggCircuit. So they are the B2B software that operates the system inside those gaming centers and we are now the B2C front end of that. So, when those players come in, we have an opportunity to get them to registered, Super League, once they register, they start to understand their place on leaderboards and start accruing some reward points and then we have the opportunity to convert them into paid players. We did that because, we believed and were told by good subscription advisors that we needed to start with a very specific segment first. But I alluded to it a bit, I just absolutely our intention to have subscription offers that speak to mobile gamers that have aspects or features that are of interest to gamers engage with us even when they’re at home. And that’s the beauty of the work we’ve done with ggCircuit is you really need to think way beyond the gaming center. This integration really starts to mean that we can have application to kind of gamers anywhere they are. There’s a lot more benefits for us going beyond just those gaming centers on today.

Okay. And then, this is going to be hard to answer, but how much of the activity that you generate revenue from, you think will be coming from physical events versus digital and to the extent is it physical, are you hearing anything that some of those places might be shutting down temporarily due to the coronavirus?

Well, it’s a good question. I mean, right now a lot of our revenue is generated off of our digital. And Clayton told you that over 90% of our revenues last year came from brand and advertising sponsorships. And most of those are for our digital reach. It’s getting behind our viewing channels. It’s getting behind our online leagues. We’re really just starting as we did historically when we charged tournament fees for physical events. Prime right now has some real stickiness to the physical venues. So it has a greater dependency or focus on the physical gameplay versus the digital. But of course, we’re going to continue to expand that. So right now, most of our revenues are from the digital side of the house and that’s also where we have the greatest breadth. That said, we did get some interesting data a couple of days ago. It’s preliminary, but we did get some about how the North America gaming centers were doing as far as just their own customer participation. And it was showing that actually the numbers are up in February and then the March trend line. I think that well of course, people are going to be very focused on not spending as much time in large social situations, these local gaming centers or people who already have friends there and they’re either going to hang out at home together or they’re going to go to this cooler venue that has access to great equipment and a little bit more of a social experience. So hardly, we might be the type of retail venue that endures, because it’s small, it’s intimate, it’s close to home, it’s with people you know, it’s your substitute frankly for all the other types of social experiences you’ll be sacrificing over the next few weeks.

Okay. Thank you very much.

Your next question is from Jeff Cohen from Stephens Inc. Please go ahead.

Hi guys. Thanks for the question. Most of mine have been taken. So, I’ll go with a broader one. You guys have laid out a number of different revenue pieces today from advertising the city leagues subscription and even the third-party content licensing with Snapchat. Could you may be stack rank those for us and talk about what vector we should expect to start to see ramp first in 2020? Thanks.

Yes, absolutely. So, we – it’s a good point that there are different forms of sponsorship and ad revenue and different forms of consumer monetization, but it all comes back to those two buckets. Either we, the player pays us for a brand sponsor advertiser pays us and the majority of our revenues have been from brand and – brand sponsor and advertising. That’s certainly where we have a deep robust pipeline of different deals and negotiations going on. And really just in December with the launch of Prime was really the first meaningful step we’ve made in trying to get the player to pay us. And so for that reason, you’ll continue to see this year that the dominance will be on the sponsorship ad revenue side. But we’ve always, again, it was a strategic choice we made in the early days, which was to first just get as many players into our funnel as we could for free. That’s also really follows the classic gaming all these days of freemium. You can download Fortnite for free and then they get you on the microtransactions inside the game. And so certainly for us that was the bulk of our consumer monetization strategy last year. So, again, the simplest way to think about two buckets, brand sponsorship and advertising for which Snapchat is just a subset of that. It’s just a different type of source of ad revenue and then this new step into consumer monetization with Prime and that’s the simplest way for you to bucket.

Got it. Thanks, Ann.

Your next question is from Kinstlinger from Alliance Global Partners. Your line is now open.

Hi, this is Jake on for Brian. Most of my questions were also already taken. I was wondering if you could talk a little bit about the ramp of a Super League Prime.

Yes, I mean, it’s a tough one because it’s early days, right? I mean, when I talked about our ad inventory last year and said it’s ramping, it’s ramping its early days. Well, now we’ve got the team in place. And so we’re actually now getting into the business of actually delivering that ad revenue. But Prime and consumer monetization is really eight weeks old and we just brought in a big leader to be the GM of it four weeks ago. I think that we are learning a lot about the ways, the type of reward system and gameplay programming that these PC gamers are excited about. I’d say they probably the more important exciting path is the product roadmap that takes it way beyond just traditional gameplay in the center. So, it’s hard to say. Again, we’ve got that sample set I talked about of users right now. And we’re mining a lot of data to see how we segment them further to get insights. Right now, the current pricing system is $5 a month. And for those $5 a month, you’re getting accelerated points and rewards access to a global vault of pricing, enhanced pricing for tournaments by being a member as well as access to exclusive programming, special tournaments. And so we’re still kind of tweaking those things to make sure that we really find a silver bullet and hooking in those players for the longest kind of lifetime value.

Okay, great. Thanks. And just one more, and you touched on the virus a bit, but do you expect to see more uploads and on Framerate and some of your other gaming channels and then more gameplay hours in Minehut due to children being at home because of the virus?

Yes, absolutely. So, when I talked about the fact that Minehut have seen a 25% increase over the last three weeks and that we’re hitting our peak concurrence. We think, first of all Minehut is just a diamond in the rough. It is really exploding. It’s got a very active engaged user base because it has that social component as well. We average over nine-minute session views just in the chat forum. So kids are hanging out in the chat forum almost as long as they’re playing the game itself. And we expect to see that continue to increase. And it’s interesting you mentioned Framerate because that, I just heard somebody say it today as I was walking out of the office to this call. It’s going to be fun to watch the Framerate numbers too. Because again, this is going to just be these other kind of fun ways for gamers to take their preferred form of entertainment and spend more time socializing and having fun around it when maybe they’ve had to give up going to class.

Great. Thank you.

Hopefully, we won’t be responsible for declining the grade point average of the globe.

Thank you again.

Now the nice thing too about that is it’s just remember Minehut, Framerate, they’re beautifully global. Framerate it can be any game title anywhere. So a player who’s sitting at home in South Korea and like the title that maybe I’ve never even heard of can still have an epic tail or an epic play that can be highly entertaining on those channels. So the beauty of that is that it really can be or any gamer anywhere.

We have a follow-up question from Allen Klee from National Securities. Sir, please go ahead.

Yes. Hi. I didn’t know if you had this information at this point, but do you have the breakout of your revenues by brand and media sponsorship platform-as-a-service and direct to consumer and advertising?

Sure. Sure. And we will also lay this out in detail in our 10-K, which we intend to file here in the short term. But for the fourth quarter our brand and media partnership revenues were about 41% of the total. Platform-as-a-service, were about 37% of the total. Third party content about 18% and a direct to consumer about 3%.

So those first three lines, Allen, we are – you can simplify and bucket as a part of the umbrella called sponsorship in advertising. It’s really only the fourth line direct to consumer, which is the beginnings of Prime.

And then from a year to-date 2019…

Okay.

I’m sorry. From a year to-date 2019 standpoint, a 42% brand and media, 29% platform-as-a-service, a 6% third-party content, and then a 3% for subscription.

Thank you.

At this time, this concludes our question-and-answer session. I would now like to turn the call back over to Ms. Ann for any closing remarks.

Thank you very much. Look, I’ll be brief. We’d like to thank everybody for listening to today’s call. We look forward to speaking to you again soon. Really appreciate your support. We’re confident that we’re going to deliver a big shareholder return here in the future. And so all we ask right now is that everybody stays safe and we will stay focused on the mission at hand and on our march to prove that we have scalable revenues. So thank you.

Ladies and gentlemen, this concludes today’s teleconference. You may now disconnect. Thank you for your participation.