Good afternoon, everyone, and thank you for participating in today’s conference call to discuss Super League Gaming’s Financial Results for the First Quarter ended March 31, 2022. 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. This 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 that does not reflect historical facts, 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 with the Securities and Exchange Commission for more information about the risks and uncertainties that could cause actual results to differ. I would like to remind everyone that this call will be available for replay through 8:00 p.m. Eastern Time on May 23, 2022, 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?

Thank you, Ashley, and good afternoon to everyone. Thank you all for joining us today. We have a lot of great news to report. As I’ve mentioned, I enjoy the exercise of writing each quarter’s earnings script as it provides a moment to pause and reflect on what we’ve accomplished and equally ask ourselves how we can supercharge our performance delivery going forward. It’s our quarterly report card. So let’s jump in. To start we delivered 3.8 million in revenue in Q1, higher than consensus expectations and a new record high for a first quarter and higher than our internal plans. Our strong results both financially and operationally have set a solid foundation for the rest of 2022 as we continue to strengthen our leading position, and connecting advertisers to young gaming audiences through our universe of Metaverse games and content channels. It bears repeating that the Metaverse is not something we recently pivoted towards. We’ve been in the gaming Metaverse for eight years. It’s where we live, and where we have built success for ourselves and for brands and our partner creators. 81% of Gen-Z say gaming is their favorite activity. This is where advertisers need to be because this is where kids are, they’re gaming with Metaverse games existing for over a decade. It’s not a theoretical concept. In fact, this category, as a category is projected to be a $413 billion industry by 2024. Equally compelling global advertising spend, categorized as in game advertising, is projected to be valued at 56 billion by 2024. This is our addressable market and it’s massive and growing. Today our gaming fans generate close to 1 billion monthly impressions driven by over 70 million monthly active players we reach in our Metaverse gaming network, operating at scale across the two biggest…

Thank you, Ann and good afternoon, everyone. Jumping right into our strong first quarter 2022 results. As summarized in our earnings release filed with the SEC filed this afternoon first quarter 2022 revenues were 3.8 million compared to 788,000 for the first quarter of 2021. The 378% increase was driven by strong increases for all three of our primary revenue streams including advertising and sponsorships, content, sale, and direct to consumer revenue. Advertising and sponsorship revenues, which includes direct sales, advertising and brand sponsorships, as well as programmatic display in video advertising revenues increased 328% to 1.9 million and comprised approximately 49% of revenues for the first quarter of 2022 compared to 55% in the first quarter of 2021. The increase in revenue just primarily due to a 189% increase in our direct sales advertising revenue generating customers driven by our growing premium in-game and in-stream advertising inventory, and a 48% increase in the average revenue per customer. Content related revenues increased 384% over the prior year quarter to 1.4 million and accounted for approximately 37% of revenue for the first quarter of 2022 compared to 37% of revenues in the prior year quarter. Content sales revenue is generated in connection with our curation and distribution of eSports and entertainment content for our own network of digital channels, and our media and entertainment partner channel. This includes the syndication and licensing of original programming content. user generated content, including online game play and game play highlights technology, and the creation of content for third parties utilizing our content studio remote production and broadcast technology. The increase in content revenues for the first quarter of 2022 was primarily driven by an increase in our live stream remote production broadcasts game play and technology development related content sales activities, including broadcast and…

Thanks Clayton. So to recap, the strong operating momentum of the first quarter has created a solid foundation for achieving our growth expectations for 2022. We’re laser focused on execution to monitor ties are sought after ad inventory. And given the unusually tough market environment, facing public companies we are committed to not just delivering the top line, but also identifying further cost levers to narrow our operating losses faster. But again, I must reiterate, despite this challenging economic environment, we are on plan for a breakout year of growth. We aren’t just taking advertisers into the Metaverse, we’re taking you, our committed investors there as well. And as you will hear me say again, and again, we are well-positioned to take you there, because it’s where we live, where we’ve already established a massive audience now with massive growth ahead. And so with that, Clayton and I are happy to take your questions. Ashley.

Thank you. [Operator Instructions] And our first question will come from Scott Buck with H.C. Wainwright. Please proceed.

Hi, good afternoon, guys. Thank you for taking my questions. It looks like you have another quarter of a nice step forward on the content revenue. Should we view this as the new run rate or are there some kind of one off items in there that made this quarter particularly strong?

Yes, definitely what we love about both our content and technology revenue stream, as well as our direct to consumer stream is they offer a nice smoothing out of the inevitable seasonality with ad revenues. And we did have some repeat business specifically with Twitch who has been a long serving content partner in the back half of last year coming through in 1Q we continue to expect to continue to see that come through. And as well, we booked a pretty significant technology licensing and piece of work that we had done for Verizon, which was a one off client. And so those are the two kind of primary kind of customers that you’re seeing there. Twitch is recurring, Verizon is not.

Okay, that’s very helpful Ann and then that leads me to gross profit margin content mix driven in the quarter. I mean, I know you guys reiterated the 45% to 50% on the year, but just curious again, we had a nice real nice step forward in the quarter, I just want to make sure I’m thinking about it the right way for the remainder of the year.

Yes, I mean, the nice thing is, is that we target that type of margin range across all three of our revenue streams. And so we don’t have one revenue stream necessarily dragging down the others from a blended perspective. Certainly what we’ve talked about on prior calls is that last year we were hitting north of 50% in the early part of the year. And then as we got through the acquisitions, it just took us a little bit of time to absorb the new ad inventory through the acquisitions, and to reset those rate cards, so that we could walk those ad products up to that same kind of 45% to 50% range. And so I think investors should be really happy to see that we identified that opportunity to walk it up since 3Q and we’ve done it about four points and 4Q and then another four points here, and 1Q so now we’re hitting that nice strike range. I do caution that the reason we say 45 to 50 is really to your question, these things do fluctuate. Sometimes we’re going to chase bigger deals, and maybe we’re willing to take on a little bit lower of a margin. Just because it’s a big deal. Maybe it’s an opportunity to kind of create a tentpole event with a brand we’ve been chasing for some time, because we know there’s a lot of follow on afterwards. But again, the objective of the company across all three revenue streams is staying in that 45% to 50% range.

Great, that’s very helpful. And then last one for me. I’m just curious on the additional capital. Are there specific initiatives you’re looking at to use that money for? Or is it more broadly, just working capital to sort of continue to run and grow the business?

Yes, it’s really both. Because if you think about it, I mean, we took on a pretty bold goal to more than double our revenue relative to last year. And so this is opportunities for us to deliver that plan, and also to opportunistically grow beyond it, whether it be organic or organic. So we’ve done a lot of good work at what would it take for us to at a minimum, hit the numbers we’ve promised and also what would it take for us to hit it out of the park beyond that, and we feel that right now, between the 4 million and the other earlier announced financing facilities that we have available to access to at our own discretion. We are in great shape from a capital perspective.

Great, that’s helpful. I appreciate the time, guys, thank you.

Yes, thank you.

[Operator Instructions] Your next question comes from Jack Vander Aarde with Maxim Group.

Okay, great. Hi, Ann. Hi, Clayton. Congrats on the solid results and reiterated strong guidance. I’m just going to follow up just to understand I’m juggling half a dozen earnings calls tonight, that’s pretty crystal clear on the capital and liquidity situation. So you finish the quarter with 7.8 million in cash and no debt. And say you announced a 4.3 million verbal note and 9% interest. It sounds like you’re confident that gives you enough runway to execute your business growth objectives for 2022. But I just want to be absolutely sure is that do I understand that correctly with this convertible note, you expect it to get you through 20.2 while still fueling all the growth funnels?

Yes, I mean, the good news for us is in the second half year is when we deliver more of our revenues and we don’t really see our costs going up exponentially relative to those revenues. We have invested in the team and the infrastructure that we need to deliver that full year plan. And so the good news is as we start to deliver that heavier weight of revenues in the back half of the year that certainly lessens the net burn and lessens the kind of cash we have to put out to chase those revenues. But what I would say is keep in mind, we do have other opportunities to pull in capital opportunistically if our stock moves in the right direction. So we do have access to the HELOC that we announced a couple of months ago as well as an ATM. And so we’re just going to really try to smartly work with the 4 million the ending cash balance, we talked about March, the 4 million that we brought in today, focus on that exceptional back half performance that we expect to be able to deliver. And then if needed, if an opportunity arises, we can tap into those facilities, again, just to take advantage of any opportunistic runs that could happen as we wait for these public markets to kind of come back around.

Okay, crystal clear. Appreciate the color there. And then I just want to switch gears to a question that I want to highlight more than anything, or topic. I believe you said you had 90% of your revenue from repeat buyers and recently you have won the first $1 million deal, a million plus dollar deal with Samsung, which is excellent to hear. You said you’re chasing several other $1 million deals. So here’s a couple of questions here. The Samsung deal was that one in the first quarter of the second quarter? And then can you provide more color on the several other million dollar deals? And when those might close? Are those incremental guidance or the baked into guidance? That’s all. Thank you.

Yes, and I’ll probably read another kind of question into where you started, which is 90% of the deals one, the absolute number one deals, not the dollars are repeats. So that could be a game publisher, who maybe launched the game with us in 4Q, maybe put a couple 100k to work with us and 4Q and now as they’re doing follow on campaigns, they’re coming back, and maybe it’s a smaller amount. It could be 50, 75k. But it’s extensions of the campaigns. So we count that as a repeat buyer. So keep in mind, we could be seeing our deal sizes continue to grow, and still see that we have both more people buying from us and also at the same time still have those really strong repeat percentages as well because a lot of that has to do with the stage they’re at in the campaign. As far as your question about Samsung. That is a campaign that launched on Friday, the 13th in May. So just last week, and as I mentioned that the five week run, so that will be recognizable revenue for 2Q. That said it’s a deal that when we spoke on the last earnings call it was in pursuit. So when I spoke about the seven figure deals we were chasing, that was certainly one that we were actively in conversations around. What I do think is an interesting though, the trend line is that sometimes in the early days for us these seven figure deals it was it was really almost a business development activity. Some of these could take months to kind of curate to even get them into six figure range because they weren’t really coming from the agency or ad side of the house or the campaign…

Well, fantastic color there and good things happening. I appreciate the update and I will hop back into the queue.

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

Thank you, Ashley. Well, we’d like to thank everyone for listening to today’s call. Clayton and I will be at the Needham Tech conferences Wednesday with a fireside chat presentation scheduled for 1:30 p.m. Eastern time. Also, I’ll be at the HC Wainwright Global Investment Conference in Miami on May 25. We look forward to speaking with you again when we report our second quarter results in August. Please reach out to our Investor Relations team at gateway if you have any other questions. And with that, we wish you a great evening.

Ladies and gentlemen, this does conclude today’s conference. You may disconnect your lines at this time. Thank you for your participation.