Thank you for joining us for today’s call. Before I turn the call over to the Company, we need to advise you of the following. Comments made on today’s call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current assumptions and opinions, and involve a variety of known and unknown risks and uncertainties. Actual results may differ materially from those contained in or suggested by such forward-looking statements. Important factors that might cause such differences include those set forth from time to time in the Company’s SEC filings including the Company’s report on Form 10-K for the year ended December 31, 2016, and other current and periodic reports the Company files with the SEC. At this time, I’d like to introduce Andrew Perlman, the Chief Executive Officer of FORM Holdings. Please go ahead, sir.

Good afternoon and thank you all for taking the time to join us for an investor update and earnings call. Joining me today on the call are Anastasia Nyrkovskaya, FORM Holdings’ Chief Financial Officer; Ed Jankowski, FORM SVP and XpresSpa’s Chief Executive Officer. As we’ve discussed on previous earnings call, 2017 has been a year of transition. We were focused on our health and wellness business and the Company's to a pure-play its rapidly approaching completion. These efforts began with the transfer of the majority of our patent portfolio to Nokia in December 2016, followed by the closing of the XpresSpa acquisition shortly thereafter and just two weeks ago the closing of the FLI Charge divestiture. The Company is actively building options for the Group Mobile business and we expect to communicate our plans prior to the year and calendar 2017. We are focused on the health and wellness space because it provides a significant opportunity to build around our core XpresSpa’s asset. According to the Global Wellness Institute, the global wellness industry is growing at a double-digit rate and the global spa industry represented a nearly $100 billion mark in 2015, a strong customer to consumers desire to find relief from such. XpresSpa’s core addressable market has been focused on the size, but we seek to expand beyond our core to address and help to find a broader market focused on beauty and wellness on the go. The size and composition of the industry is attractive, and we aim to seek new partnerships and extend our brand into adjacent markets. Consumer preferences are shifting towards experiential outlets and the pronounce impact from the millennial demographic is providing fuels to this movement to continue in the future. Beside from the fitness oriented platforms, there are few moments company's with the…

Thank you. At this time, we will be conducting a question-and-answer session. [Operator Instructions] Our first question comes from Camilo Lyon with Canaccord Genuity. Please proceed with your question.

Could you just remind us how do you view the market opportunity within XpresSpa segment and the airport location market? And then maybe touch upon other opportunities outside the airport that you briefly mentioned as it relates to XpresSpa and it sounds like you are also contemplating the opportunity to expand into other concepts and categories, and if there is anything on that will be great?

In terms of the addressable market, we believe that the U.S. market could support 170 company-owned stores and up to 100 rental franchisees. Separately we think that the international market to support also approximately 150 company-owned stores. As I mentioned in the prepared remarks, we think it's premature to announce exactly what we are going to do outside airport, but we do think that it is important to test a prototype that we are quite for a long, we of course recognized that the service in merchandise mix often it will be different than what is inside the airport. So while the opportunity is potentially huge. We first want to make sure that we tested judiciously. In terms of other concepts that we are looking at things like we are doing like to cryofacial. We ultimately think it could be a standalone concept of something that we are still contemplating, but again our goal is to constantly innovate fast wellness services and also to think about the higher market. So we think that those might be able to live there and standalone brand but that’s very forward-looking at this point.

And then as you think about -- you mentioned in your prepared remarks your biggest hurdle is health. As you think about the new technology vetted the POS system. How does that help you engage in any talent, new therapy into the store and hopefully do you over that get people into the stores?

So, the technology really helps us to be efficient with the labor pool that we already have. In terms of actually recruiting talent the other thing that the technology and the store does, is it does give us more modern setting, it's easier for our employees to use. When you go into our stores now you will see an iPad at checkout that is something that looks like an old cash register, so the training program is much easier for us. But there is a separate component of talent recruitment that if anybody looks at or social media or even things like Glassdoor, you can constantly see that the morale of employees is improving, so part of when you say technology is our presence across every place that our brand, which is something that we are still working on, but we believe it steadily improving.

And then my final question is. Is there a thought to start to leverage that on the sales technology to perhaps create like a frequent travel visitor membership program or something that effect down the road, so that you can create a larger share of wallet opportunity to your customers? I'm assuming are probably more VIP customers that we came to know the brand and see the brand more or frequently at the, which is the travel that you motioned?

Yes, so while we haven't set actual goals and delivery dates for 2018, there are number of things that relate to your question and we are working on that. The first it is being able to take real time twice data and better schedule for our employees, but something that's really that we may ultimately be able to give any guidance. But it's premature to set dates around that as because our customers are frequent travelers and upper demographic, and we have an 180,000 loyalty card members. We could wrap all of that into an experience associated with our brand and it may get -- put it into a format that is very easy for our customers to use and constantly engage them with their movement. Is that something is definitely at the top of mind for us and something that we are beginning to plan for the next year.

Our next question comes from David Bain with ROTH Capital. Please proceed with your question.

First, Andrew just on guidance I understand that the 50 million of wellness was reiterated on technology. Are we still looking for 20 million fairly sizeable increase quarter-over-quarter?

David, there definitely would be a sizeable increase quarter-over-quarter. Like I said as it relates to technology generally what we wanted to do is that to announce our plans for the business before the first quarter was over.

And then looking at calendar '18 and they indicated December quarterly run rate based on your 50 million wellness guide. Then you look at your pipeline as you announced it for next year as the same-store sales increases I mean unless the openings are really back half loaded like really back half loaded it seems somewhat conservative but I'm hoping to maybe get some thoughts like reasons just to why you are waiting is this a timing to schedule with openings is it ongoing negotiations that you can look to potentially incorporated service expansion planning trying to get understanding as to kind of why were what the methodology is around your upcoming discussion and guidance in the fourth quarter?

Yes, absolutely. So in our case everything people that have been following the Company now. The current pipeline of openings in the second quarter started to come together very quickly and as I mentioned in the prepared remarks we already have nine that are in the pipeline and for next year. And we do have this possible increasing and one of this thing that we were really focused on again as I mentioned is the Company has never seen store growth like this ever before so when we give guidance. We want to be in a position where we can commit to it we believe that many of those openings that are already schedule will happen in the first half of the year but until. We get to the for really deepen things like the permitting process we just we want to be able to deliver something that we can move by and so like I said you can expect that form us when we deliver our fourth-quarter at early next year.

Okay and just two more quickies. One, just to clean up the -- you did a great job of kind of letting out the whole margin components for the fourth-quarter, so we should be expecting margin just normalized margin like 20% or 19.7%? This is in the…

Yes, so our expectation is that we will do that or better. I mention three partnerships that have launched so far this year. All three of those will be in full swing as we get into the fourth quarter and you can also expect more innovative things from us in the fourth quarter that will help us expand margin. So you could expect a more normalized margin and as I think we gave some color around the hurricane obviously had a very, very limited but specific impact both to the top and to margin level.

Just with that I guess my final one will be on things cryofacial and what have you -- as you look at JFK terminal post that you have added that. Is there any sort of financial impact either on a margin level of revenue level? When you put these services across some of the platform what's been the response today is there anything you can share with us?

I think I should share a little bit about nail care and I talked about Cryo for the second. In the case of Cryo, we know it's exciting its simply too early for us to get no material guidance, again it's right now we're limited, we're in one location and the service that we are very, very excited about. We see the promise there but because it's limited we know that it will cause an uptick in margin, but I wouldn't give a number yet. I'll turn it over to Ed to talk a little bit about what we've done with essie in the third quarter?

We had a full year track in seven of our locations. We are in the beginning of year we started covering the essie market share. It was only in seven locations and literally there was a 22% spread between the performance for nail -- performance is richer performance in that spa and the rest of spa. So it's tremendously successful. In addition in our relationship with essie here, as of December 1st, we are committing a fourth perception in the front of the store, a retail front of the store to really display, top of the display our essie product, our gel couture and enamel. Prior to that it was done on the corner and was located throughout the store. So this commitment to the front center is very, very exciting. We set up T4 -- the JFK T4 main store that we remodeled. We set that up at the beginning of October with the new essie fixturing and our retail nail sales are up 115% over the same period for last year. So we are very, very bullish on our ability to really grow our essie business to use essie gel couture to grow our manicure and pedicure, and then also to see some strong retail sales of the product for next year.

[Operator Instructions] Our next question comes from Josh Caddle [ph], a Private Investor. Please proceed with your question.

Andrew, I had a couple for you. Going from easy to hard. Store count, one by one store during the quarter, you mentioned that was a construction loan closing is that temporary or permanent?

It was a permanent of course it was all terminal and DSW was the delta terminal, we're actually tearing it down. We stayed right to left that was opened, but at the end of the day they are remodeling that whole area, so that’s terminal is actually going away as it exist today.

So you guys get to refocus that equipment or is it just lost?

That was a more of a key also we are storing and we are using the opportunity is up to us to bring it somewhere else.

Okay, second one should be a quickie. I know in the past you guys have disclosed some sort of quarterly issues seasonality estimate and I was looking forward and I couldn't find it. Can you remind me of what the quarterly breakdown as in terms of revenues?

Sure. So historically we the third quarter has been 2016 has changed first quarter is the latest Q2 and Q3 are the busiest. I think in this case as I mentioned then in the prepared remarks I think we are going to break out at the historical norms because of the number of store opening that are happening in the fourth quarter, as we mentioned, we would opened up three locations just in the past five weeks. And so that's various -- I think grows us a little bit out of what's been historical on the new layer on the approximately 400,000 that we estimate for those loss that results of the hurricane, and if are going to be fairly out of that with the historical seasonality.

Quicker question for you about the line in the K about the there were 1.8 million of M&A integration re-org and non-recurring costs. I know that I think that includes 200,000 of hurricane cost regarding so which gets it down to 1.6 million. I think you said also in the prepared remarks about a $1 million of D&A and the year or two did I get it right?

No, I don’t think we address the depreciation and amortization in that prepared remarks.

Okay, so in this $1.8 million merger and acquisition integration for the third quarter. Can you talk about that?

So that's actually the year-to-date number that's in the queue I think what you are referring to is the liquidity table that we inserted in the queue.

No, I'm looking at the, I'm sorry I'm looking at the K that says the Company's operating loss from continuing operations for the quarter of fiscal 2017 included approximately 1.8 million of merger and acquisition integration re-org and onetime non-recurring costs related to the interruption of business due to hurricane? It's under operating results the second line under operational results, second paragraph right above the balance sheet and cash flows in the K and I think…

Sorry, I think I apologize I don't have Q, the Q in front of me, so I'm not concerned of paragraph you are referring to.

I can talk to you about that off line, if you like.

Yes, I mean happy to, but I think that but just to address that I believe what we said is $1.8 million of M&A related costs year-to-date. Definitely, I think if you look at the adjusted EBITDA tax moving to page on 20, and I'll give a breakout of the Q3 related costs by segment. And then I think in that case it's about 529,000 for XpresSpa’s which is the one that if you are referring to something that actually include the hurricane that includes the additional cost of the hurricane.

Okay, I guess the final question. I don’t think I'm the only shareholder asking this question. Just when we talk about understand the goal to get cash flow positive on a consolidated basis. You have get this obviously still 18-months out, you have new stores that are opening in cash and you have current operations that are still burning cash because the corporate overhead. What can you say to rely shareholders concerns about the current stage of cash despite your continued desire on goals are getting cash flow positive with the consolidated basis.

And so I think I would say a couple of things. So first of all if you look at FH corporate operating cost must be XpresSpa cost on an ongoing basis. We believe that on an operating basis that what we've had that day-to-day operating cash flow breakeven point and about 60 units, which will be right there at the end of the year. So I would say that's number one. Number two as I mentioned we are about to generate cash from inventory. And then number three as we talk about and as was the case although in small amount but FLI Charge as we started to spin off and look at what we do with our other assets and actually goals and believe this will generate cash as well.

Ladies and gentlemen, we have reached to end of the question-and-answer-session. We thank you for participation today. You may disconnect your lines at this time and this concludes the call.