Thank you, Chris, for the introduction, and thank you, everyone, for joining the call. It's my pleasure to speak to you today for the first time as the CEO of Presto. While I only assumed this role a little over 3 months ago, I've been working with Presto in a variety of capacities for over a year and therefore already had deep experience with the company and its potential. By way of some brief background, I have extensive experience working with some of the world's largest restaurant chains on commercial and operational issues.
And so I have a deep understanding of what matters to our customers. My personal focus will always skew to the customer, commercial and strategic elements of this business while I will work closely with our excellent engineering, product and operational leaders to deliver in those areas. In this my first earnings call, I wanted to spend the majority of the time updating you all on the business and operational progress we have made since I assumed my role, which includes some new approaches and how these initiatives position us for the future.
First, however, I need to review Presto's current financial position. We recently made several public statements relating to our plans for the coming months in relation to financing. I wish to address and recap these before moving on to the business itself. On May 20, 2024, we completed a financing of $3 million in common equity and subordinated debt from various parties, including our existing investor, Remus Capital. In conjunction with this financing, Presto's principal senior secured lender, Metropolitan Partners Group agreed to extend forbearance with respect to existing defaults under the company's credit facility until June 15, 2024.
The capital raised together with cash on hand and projected revenues is expected to be sufficient to finance the company through June 15, 2024. Metropolitan has agreed to further extend forbearance until July 15, 2024, if the company raises $3 million in additional equity by June 7 this year. Crucially, during this forbearance period, Metropolitan has agreed to negotiate in good faith to complete an agreement to transfer its debt position to a new lender in consideration for $20 million and evidence of a minimum of $12 million of operating capital in the company.
Metropolitan will also receive convertible notes in the company. If a transfer of the debt is not completed or forbearance is otherwise terminated, the company has agreed to cooperate with Metropolitan as it explores its other financial alternatives, including seeking new investors or M&A options. Please refer to the Form 8-K filed by the company on May 16 for full details. As we have articulated previously, we are singularly focused on creating a capital structure that will position Presto for the future. This agreement with Metropolitan to explore the transfer of its debt position to a new lender is viewed as a critical step in achieving this outcome. There is substantial work underway from both myself and the Board to execute on this in the coming days and weeks.
Before I get into the business detail, I would also like to provide a brief update on the wind down of our heritage Touch Pay-at-Table business. As has previously been communicated, we have taken the decision to focus all of our efforts and resources on Voice AI and as such made the difficult decision to exit our Touch business. Over the last few months, we have been executing on that decision and expect to have completed the wind down by the end of next quarter.
This initiative has allowed us to focus the whole team exclusively on one goal, improving our Voice AI product, which has led to a greater pace of innovation and progress. It also has significant cost reduction benefits, which, as we said, are critical as we move forward towards a profitable business model. I will later reference specific advantages or advancements, which have been made due to the singular focus. And we are confident as ever that this was the correct strategic decision for the good of the long-term future of Presto.
As referenced above, I would like to spend the remainder of my time detailing the substantial progress we have made across 4 core areas of the business. These are commercial developments, including new logo wins, existing customer expansions and differentiators in the market; strategic product developments, highlighting our latest product innovations and discussing potential opportunities for Presto Voice AI product evolution; and tactical product developments, including new features we've recently introduced; and product improvements, we're already working on; and finally, operations, emphasizing the importance of customer success, support and our deployment capability.
First, let me discuss commercial and customer developments. This is an exciting time for Presto. The market opportunity for Voice AI remains substantial in the drive-thru restaurant sector of well over $2.5 billion per year in the U.S. alone. The industry is only just starting to embrace automation with few over 1% of U.S. drive-thrus having adopted any form of voice AI yet.
Moreover, due to the underlying complexity of the technology, it is an extremely difficult market for new players to enter providing those already in the space with a significant advantage. I've witnessed firsthand the intricacy involved in integrating into restaurant systems and building one's own AI product. These efforts and investments place us as a substantial advantage in terms of our future growth. We believe that through these investments in development, Presto is ideally suited to address the needs of the middle market restaurant operators, a sector we are now strategically targeting.
With that backdrop, I want to address our significant commercial progress over the past quarter. First of all, we are engaged in expanding live deployments among our existing customers. There are currently active expansion negotiations with 7 franchise groups, which have nearly 500 total locations to expand to. This is equivalent to nearly $10 million in ARR. I am delighted to report we've also made real strides in expanding our customer base and enhancing our top-of-funnel pipeline.
We currently have successful pilot programs with 4 well-known QSR brands, which collectively represent 1,300 locations or approximately $25 million in ARR. Of these 4 pilots, we just last week signed an MSA with 1 brand that has approximately 350 locations and have agreed to deploy Presto Voice in 25 of their drive-thrus immediately.
For another operator, we have already deployed Presto Voice in 7 of its 35 drive-thru locations. We are close to completing MSA negotiations with the other 2 brands, and we are also in separate new pilot discussions with a major household name brand. In closing on the commercial front, I'd like to take a step back and rearticulate the core elements of our proposition, which are most attractive to our customers and are driving the commercial success outlined above.
First, we have the proven ability to integrate into a broad range of customer environments, including 4 different point-of-sale systems and the customer hardware. This flexibility is crucial in such a fragmented market. Our new approach to menu ingestion. This is the way in which we take a customer's menu and build it out to link to our AI product. This will enable us to significantly simplify the menu-building process and will deliver a step change in our ability to expand rapidly across multiple brands at the same time.
We possess a 10-year track record serving restaurant operators, including corporate owners and their franchise networks. We understand complex customer environments exceptionally well. Moreover, we have proved our ability to deploy at pace, operating at an average rate of around 30 deployments per month from November through February, with a peak of nearly 50 in December. This demonstrates our ability to scale quickly and safely with our partners, even across a range of different point-of-sale systems and environments.
Finally, we've built and own our own proprietary hardware, specifically designed to improve successful and quick integration. Because of these capabilities, we believe we are the only player in the market who has the ability to serve the mid-market of the North American QSR space. Other providers do not possess the technology or deployment experience to allow them to expand across multiple different brands with different technology environments and many structures.
As such, mid-market brands will be a key focus of our short- to medium-term growth plan. We will, of course, continue to build relationships and develop pilots with the largest brands, which will represent a greater proportion of our long-term opportunity. In the shorter-to-medium term, we anticipate significant proportion of our deployments will come from these customers in the mid-market whom we are purpose built to serve.
Second, I would like to outline our strategic product developments. As we disclosed a few weeks ago, we have recently launched Presto Voice Pure AI, a transformational feature that eliminates humans-in-the-loop in an initial test location. Candidly, the technology has performed at a level far above what we have been anticipating, with AI efficiency rising from around 50% to around 80% at the initial test location.
We'll be expanding Pure AI to a greater range of stores over the next few weeks to collect more data. Why Pure AI is so exciting? Well, we found that the humans-in-the-loop often intervene early in the order process before the AI has a chance to complete the order and learn. The Pure AI feature enables a smooth transition to the restaurant team member only when the AI determines that it's unable to process an order. We believe that this feature will allow the Voice AI system to improve more quickly, while still providing the efficiency and level of accuracy we are known for.
For us, the gradual elimination of human-in-the-loop will allow us to improve our margins and reach profitability more quickly. I believe humans-in-the-loop will still play a crucial role in our overall solution but this advancement is testament to the strength of our underlying technology solution. With this backdrop of our new AI configuration, I do think it would be helpful to explain my vision for the evolution of Presto Voice AI's capabilities on the whole.
There are effectively 5 modes of Presto that we can deploy. Pure AI where AI leads order management and does not require any agents. When uncertain, it will just escalate directly to the store. Unsupervised AI where AI leads order management with agents pulled in from a pool to support if issues emerge. Supervised AI where AI leads order management with constant oversight from agents in case issues emerge. Agent led, where remote agents lead our order management use, but using Voice AI infrastructure to input the orders. And finally, Snooze a new feature where if for any reason, the customer would like to take orders manually, they can choose to snooze Presto for a set period of time, say, 30 minutes during the rush hour.
In addition to Pure AI, we have been focused on developing the unsupervised AI element of this spectrum and have been trialing this in initial test location. Unsupervised AI also significantly outperformed our expectations with AI efficiency rising from around 45% to 70% at the initial test location. We have demonstrated that agents can successfully join a session already in progress and can help complete tasks that are challenging for the AI. Initially, we were concerned about the fact that agents couldn't do this consistently given the lack of time they have to view the order. So it was fantastic to see this level of outperformance.
We will also be expanding unsupervised AI to a greater number of stores over the next few days and weeks to collect more data. Over the coming quarters, we will begin to test a single solution that allows for these different modes, I outlined, to be used in different parts of the day. This initiative allows us to maximize nonintervention and customer satisfaction while improving our margins by optimizing agent costs. This level of flexibility is not something currently on the market, and it's something that customers have expressed an interest in.
Last week alone, we received several inbound inquiries from existing customers, keen to be part of our trials of these new forms of the product. The testing of this potential [ end state ] for Presto Voice will be a landmark moment to the ongoing growth of this business, and I look forward to updating you in due course. The third major topic I wanted to cover was some tactical product developments. On the more tactical product front, we continue to develop and deliver new features for customers alongside the more fundamental product strategy outlined above. We recently successfully piloted a Spanish language ordering feature at a location in Southern California which allows drive-thru customers to easily place orders in Spanish and effortlessly transition between English and Spanish when necessary.
This new feature allows us to provide a seamless and inclusive experience for this important demographic. We intend to pursue a broader rollout of our Spanish language capability, following additional on-site testing. We are working on a variety of other features to optimize our Voice AI platform and deliver value to our drive-thru customers, including multi-lane support, customizable upsell, [indiscernible] integration and further audio improvement.
Finally, though, I just want to touch on our approach to operations. We have renewed our commitment to develop robust customer success and customer support functions as they are critical to the overall effectiveness of Presto Voice for our customers and our ability to scale this business. We have invested and will continue to invest heavily behind this important area of our company. I personally view customer success as a fundamental part of the product, which has the ability to further differentiate us in this market.
We have implemented a much more streamlined and integrated customer support process that enables customers to easily report issues and obtain immediate assistance from the Presto team. We are focused on integrating customer support with the engineering and product teams to triage and prioritize issues and solve them more quickly. With the proper customer support, our customers achieve significantly higher nonintervention rates.
Over the past several quarters, we have demonstrated that we have the ability to deploy new locations at a rapid pace and have refined our hardware to further improve our in-store success rate. We feel confident in our team's ability to continue to expand our live locations during the next quarters.
In summary, we believe this market is there for us to capture. We've invested heavily in the fundamental product advancements required to service our customers, and we're now executing on driving continued commercial momentum in the coming weeks and months.
With that, I'd like to hand it over to our Interim Chief Financial Officer, Stanley, to review our financial performance for Q3 2024.
