Thunderbird Entertainment Group Inc at Needham Technology & Media Conference (Virtual) Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Laura Martin - Needham & Company, LLC - Analyst : Okay. So why don't I start with a couple, Jen. So just picking up on what you're talking about, let's talk about labor and the labor market first. Have you seen any change in labor availability, specifically over the last several weeks? And are you guys back in office? Or what's your in-office versus

Question: Laura Martin - Needham & Company, LLC - Analyst : So, does that mean you have required days in the office?

Question: Laura Martin - Needham & Company, LLC - Analyst : Perfect. Great. So, you made the point that this film shift -- and I'm just going to push on a little bit. So, we saw Doctor Strange in the Metaverse (sic - Multiverse of Madness) do huge business at the box office. I think there's a growing consensus that we're going to go back to the box office for a 45-day shortened window and then put things in streaming after that and not [day and date], which actually doesn't work in the sense that we have never had a big franchise created without a film release in the industry, just as a streaming world of law. So, can you speak to that and whether that hurts your business if we go back to a more traditional film release slate followed by streaming rights in the [pay one] window, 45 days later?

Question: Laura Martin - Needham & Company, LLC - Analyst : Okay. And I want to stay on that exact content answer you just gave. So I sort of feel like the content budgets you showed are as of three months ago, six months ago, which may sound really recent. But with the market window closed and this new pressure on free cash flow, I feel like content budgets are going to actually not get executed as high as their projections. And so, have you seen any of that yet, that people are cutting their orders or cutting their content spending? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 18, 2022 / 6:15PM, TBRD.V - Thunderbird Entertainment Group Inc at Needham Technology & Media Conference (Virtual)

Question: Laura Martin - Needham & Company, LLC - Analyst : Okay. So you haven't seen any content lower. Okay, fair enough. In a recession, the market is marking a lot of these media companies [down as if we are going through a recession]. How does a recession affect your business, historically?

Question: Laura Martin - Needham & Company, LLC - Analyst : Okay. Have you seen a reopening -- a demise in engagement as a result of reopening?

Question: Laura Martin - Needham & Company, LLC - Analyst : And one of the things that you've sort of consistently talked about in terms of a revenue growth driver is sort of these add-on products like consumer products or, let me call it, adjacencies for like the Disney theory where you make a piece of IP and then you monetize it at 360 degrees. Can you give us an update on progress in those alternate revenue streams?

Question: Laura Martin - Needham & Company, LLC - Analyst : Okay. So it's a little longer term, not really in the next 12 months.

Question: Laura Martin - Needham & Company, LLC - Analyst : Okay, great. On one of the key competitive advantages you have is your cost structure is 30% to 50% lower because of the tax benefits that Canada provides to your industry. Can you talk about whether there's any sort of regulatory or threat to that in any way from any form that those tax benefits could potentially disappear?

Question: Laura Martin - Needham & Company, LLC - Analyst : Okay. But there's no risk that you're going to lose business to Ontario or other province because they suddenly get their tax breaks?

Question: Laura Martin - Needham & Company, LLC - Analyst : So, you sort of hedge because you have offices everywhere?

Question: Laura Martin - Needham & Company, LLC - Analyst : (laughter) It's like there's a whole game theory. You need a whole game theory department around (multiple speakers). REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 18, 2022 / 6:15PM, TBRD.V - Thunderbird Entertainment Group Inc at Needham Technology & Media Conference (Virtual) So, we have five minutes left. So I am going to ask about -- so I know you work with Netflix, [so maybe this is some sort of view]. But you probably saw the Reed Hastings memo that said, if you don't like the content we are programing, you can just leave. And they just laid off 150 people. So, my question is, as a leader, and especially because you have three slides on diversity and inclusion, tell me about appropriate leadership in this era. Can you actually really just send an e-mail to your employees saying, we don't care what you think; you can leave if you don't like what we're doing?

Question: Laura Martin - Needham & Company, LLC - Analyst : Does it help you get more people? Does it help -- I mean, to me, that makes intuitive sense. And maybe it is just because I am a girl. But I mean, obviously, Netflix is a much bigger company than you guys. So does it work? Do you get better people, more loyal people? Like in what way does it affect the economics, at the end of the day, if you have a kinder, gentler management staff [out of the] company?

Question: Laura Martin - Needham & Company, LLC - Analyst : Okay. Do we have any audience --? Okay. So, we don't have any audience questions. So I will just ask my last question and then we'll call it there. When you think about growth drivers over the next 12 months, what are you most excited about in terms of driving revenue growth?

Question: Laura Martin - Needham & Company, LLC - Analyst : I will call it there. Thank you so much, Jen, for coming. It's always delightful to see you. And I really loved the update on the Thunderbird story. You are doing good work up there.

Question: Laura Martin - Needham & Company, LLC - Analyst : I appreciate you being here. Thank you (multiple speakers). Talk to you soon.