Q3 2020 Inpixon Earnings Call

November 12, 2020

[music].

Good afternoon, and welcome to this in Piccs and business update call all participants will be in a listen only mode did you need assistance. Please signal a conference specialist by pressing the star key followed by zero.

It depends on this call are advised that the audio of this.

This conference call is being broadcast live over the Internet and is.

Also being recorded for playback purposes, a telephone replay of the call will be available approximately one hour. After the end of the call through November 19th 2020, I would now like to turn the conference over to David Waldman, President CEO, President and CEO of Crescendo Communications LLC, the company's Investor relations firm.

Please go ahead Sir.

Good afternoon, guys. Good afternoon, everyone and thank you for joining today's conference call to discuss infections corporate developments and financial results for the three and nine months ended September Thirtyth 2020 with.

With us today are not are all either company CEO and Wendy Loundermon, the Companys Chief Financial Officer.

Today infection released financial results for the three months ended September Thirtyth 2020, if you have not received in patients earnings release. Please visit the company's Investor Relations page at IR Dot infection Dot com. During the course of this conference call. The company will be making forward looking statements. The company cautions you that any statement that is not a statement of history.

Oh fact is a forward looking statement. This includes any projections earnings revenues cash or other statements relating to the company's future financial results any statements about plans strategies objectives of management, our future operations any statements regarding complete our planned acquisitions or strategic partnerships and the anticipated impact of those transactions on our business.

As any statements concerning proposed new products or solutions any statements regarding anticipated new customers relationships or agreements any statements regarding expectations for the success of the company's products in the U.S. enter and international markets any statements regarding future economic conditions or performance, including but not limited to the impact of Cobot night.

On our operations any statements of belief and any statements of assumptions underlying any of the foregoing. These statements are based on expectations and assumptions at the date of this conference call and are subject to numerous risks and uncertainties that could cause actual results to differ materially from those described in forward looking statements. Some of these risks are described in the safe Harbor.

Section of todays press release, and a public periodic reports the company files with the Securities and Exchange Commission investors or potential investors should read these risks and protection assumes no obligation to update these forward looking statements to reflect future events or actual outcomes and does not intend to do so in addition to supplement the GAAP numbers. The company has provided non-GAAP adjusted.

Adjusted net loss and net loss per share information. In addition to non-GAAP adjusted EBITDA information. The company believes these non-GAAP numbers provide meaningful supplemental information are helpful. In assessing our historical and future performance a table reconciling GAAP information to the non-GAAP information is included in the Companys financial release I will now turn the.

All over in a non Ali infections CEO. Please go ahead.

Thanks, David Hello, everyone and welcome to our Q3 2020 business update call.

Before we get started I just want to say that I hope you are all staying safe and doing well as I know the pandemic is surging across many parts of the country.

Most of.

Our people are still working remotely from home and that continues to go well I'd like to thank our amazing employees across the globe, we have adjusted their work and home life to keep us moving forward. Despite these challenges.

I believe we are now better positioned than any time in our company's history to deliver on our business objectives.

The importance of indoor.

Intelligence and understanding what is happening in your premises to ensure the safety and security of your spaces and the people and things within them has never been more critical and urgent. This is evidenced by the fact that our revenues increased 66% over the same period last year and we expect this growth trend to continue into Q4.

For those of you who may be new to fiction today, Let me provide a brief overview of where we were at the beginning of this year and how we got there I think this will be helpful to provide the contacts for 2020 and our plans for 2021 and hopefully answer some of the questions I get from some of you on business strategy and growth plans.

In 2090.

When we began down a path aimed at providing our customers with the most comprehensive indoor intelligent solution available in the market to given the visibility security and understanding of their indoor spaces in way they've never seen before.

We also wanted to be a one stop shop, rather than selling parts of the solution which feed.

Its friction higher costs and challenges for our customers to then integrate products from multiple vendors on their own having an integrated platform also provides us a higher average selling price and a stronger value proposition for our customers.

We also believe having this integrated platform creates a blue ocean opportunity for infection.

No one else putting all the pieces together like we are in fact this industry. So highly fragmented lots of small startups in maps or Wi Fi analytics are way finding that there is no 800 pound gorilla yet to lead it.

Sure there are some big names like Cisco and Aruba will provide limited location data, but thats really a broad product of.

Their Wi Fi access points not because they are truly focused on indoor data.

So we went to work on putting together this integrated solution, which addresses a huge market.

So, let's talk about the Tam for a minute and where we fit into that.

We sit at the Nexus of several large rapidly growing underserved and fragment.

You are into markets and no matter, which analysts are market Research report you look at.

They all are saying this is multi billion double digit growth rate market.

Indoor positioning and navigation is forecasted to grow to 56.6 billion by 2027 now.

Other reports as indoor location is projected to grow to $17 billion.

2025.

Location based services and our Tls or real time location systems is projected to grow to 39 billion by 2025, and Wi Fi analytics is forecasted to be 16.8 billion by 2024.

Then there's the overall I O T market, which is reported at $212 billion.

In 2018 and is expected to grow to 1.3 trillion in 2026.

Most of those Aiotv devices are being installed in everything from shopping carts drinking fountains and they all have a spatial component we can place all those devices on our interactive map provide actionable insights trigger workflows.

And predictive analytics and more so.

So definitely a big addressable market Thats a check.

So now the question is what did we need for this one stop shop to really capture this market opportunity. We already had our positioning sensors that we started with and we had built in initial analytics platform.

So, let's take a look at where we acquired.

As in 2019 to get that core integrated solution in place and then ill talk about 2020.

The most important piece for us was getting an indoor map, which we acquired in 2019 with Jive stream maps are the most intuitive way to understand and think about location Thats. What we do for the outdoors rate you think about Google maps or.

Apple maps, so why not use that here, we picked a giant chain because their mapping product provides one centralized map for the customer, but with different profiles that can leverage across a variety of use cases. So thing for example, like the security team is going to see the cameras and security views that they need to someone in marketing.

And we'll be looking at a different profile of that same map because they want to see the heat map that shows where people are spending time, let's say in a shopping mall.

He wants to see a different view where profile of where their equipment is laid out in where the cable lines are and you and me as consumers in these various indoor spaces, whether it's in airports.

Airport or an office building or hospital.

We want to know, where we are and where we're going and how to get from 0.8 0.8. So.

It's one set of fruits in these maps that everyone can rely on instead of what typically we see you'd customers multiple versions of maps in the company that are all usually out of date right. So.

So that was one of the key values that we saw with bringing on the Jive platform on top of that it was the best mapping platform out there that we could find we've looked at a lot of them and we are looking for this acquisition.

It's interactive it's dynamic can be embedded into apps and websites and kiosks et cetera.

It was a great.

Wait for us to really showcase our location data that we were capturing with our sensors I'll confess prior to this we were using static PDF floorplans.

And frankly, many of our competitors still use those today.

So that's that was the reason why we bought Jive stream and really.

A critical component to this integrated platform that we were talking about.

We also did a smaller acquisition in 2019 that provided us some capabilities around analytics and video integration.

Specifically they had great AI powered predictive analytics, including visitor analytics like dwell time visitor counts correlation between zones.

Within the space, all which strengthened our existing analytics platform.

Before I found most interesting was really there their ability to allow us to integrate video images from existing install cameras that our customers had with our.

Positioning data the RF data that we capture with our sensors and provide that side.

Side by side, which creates a lot of.

Additional value for our customers, especially from a security use case.

And then finally in 2019, we also acquired some technology.

To be able to do some basic indoor outdoor locationing because.

Because we had customers that needed that they had corporate campuses.

Where folks or assets were going from the indoors outdoors and so we needed to be able to continue to be able to monitor and track those two assets. So we added that capability as well.

All of these efforts allowed us to build this one stop shop.

And that really impacted our operating results and 2019.

We grew over 68% compared to the prior year, we expanded our gross margins from 71% 74%.

And that set us up nicely for 2020.

Our priority in 2020 has been to focus on growth and scale and despite the pandemic, which impacted our second quarter, we've still been able to.

To show growth for the nine months in 2020 year over year.

And we expect that to continue in the fourth quarter as I mentioned.

And despite the pandemics because of our fantastic employees and the access to capital we were fortunate enough to go on the offensive. These past six months and make significant progress on our business plan.

We acquired additional technology patents and talent to build a stronger technical advantage and really create intelligence solutions were not just.

Delivering indoor intelligence, we're really building the intelligence into our products and I'll explain a little bit of that.

But having that really is a real.

Important differentiator and so the technology we've acquired.

In 2020 has contributed to that.

We've also integrated our product offerings improved product market fit and hence our operations to deliver a better customer experience.

Reference customers as you know are critical for growth.

And so making sure our customer experience is priority.

Was essential for us to be able to grow the business. So we've spent a lot of time this year improving that process and we'll continue to do so.

We've also expanded our customer and partner base organically and through acquisitions, all of which has had a positive business and.

Act in terms of our financial results. So we'll talk a little bit about them.

I want to drill down into the three areas in particular that I've touched on the technical advantage the customer experience and the business impact as we go forward.

So on the technical advantage into the advances Weve made in 2019, we are focused on creating an integrated.

One stop shop, combining positioning mapping and analytics to really leverage the available indoor data and provide critical intelligence about indoor spaces.

We continue to build on these events in 2020 with a focus on improving our indoor intelligence offering even further to provide better more precise locationing and.

To implement lean more intelligent results for our customers.

So what exactly is new this year.

Why don't we start with the 10 degrees acquisition that Weve.

She press releases on earlier.

Tend to bridge provides us what we call on device or some people refer to as blue Dot positioning.

Prior to this transaction our indoor physician capabilities were concentrated around our sensors right, we detect and physician devices people and assets NRG using our sensors really for the owner of the space. So it could be the owner of the office building the owner of a mall the airport et cetera for them to see.

What's happening.

In their space for security use cases for marketing for asset tracking et cetera.

On device positioning is kind of the opposite of that it allows us to really.

Yes show, you, where you're positioned in that space that you may be operating it right or moving in.

And so we acquired 10 degrees along with related IP and patents.

And really to.

Add that's other component so that we could show.

We could we could provide way finding and navigation.

On on device positioning allows us to use your phones onboard sensors.

Such as the gyroscope rate that tells you which direction are facing.

Even as you rotate the accelerometer to tax changes and speed the compass.

The barometer right for that helps us determine what floor you may be on as changes in our pressure are determined so using the tools on or the technology on your phone.

In sensors on your phone allow.

Allows us to understand about where you are and provide that position to you.

Think about it as well.

Really the ways for the indoors right using this on device positioning with our maps, we can create that.

Same concept of new turn by turn.

Oh litigation that you see outside when you're in your car driving around to the indoors when you're trying to get from point to point B.

Historically, we could only offer this through partnerships, we would partner with players in the space because that's what our customers need it. They wanted our maps they wanted the central position, but they also want it to be able to have.

This on device positioning.

Now we get to offer this directly on our own and also have it already integrated into our map, which makes it a lot easier for our customers.

And it also makes us one of the only providers with the ability to offer both the on device positioning as well as sensor positioning.

Now, let's move on to the noninterest acquisition that we just did recently in October.

And what we picked up there first of all it gives us two way ranging capabilities that allows us to take two tags and tell each tag how far apart. It is from the other tag.

On his tag to tag ranging as possible without adding any additional.

Once a structured you don't need any additional sensors or software or cable.

And understanding the difference between two objects allows for capability that we.

We have in fiction couldn't offer previously such as warning or triggering alerts when people are assets are getting too close to another.

Think about that with social distancing now and and use case that that.

National Gates rate, that's become a top priority.

And so we'll talk more about that and other use cases.

In a minute here, but this is important technology that allows us to really create new offerings for our customers and its patented it's being used by industry Giants like Decker wave et cetera.

Now I'll turn also provided us to technology referred to as CER.

Now along the 2.4 gigahertz spectrum like Wi Fi.

And we're now one of the only vendor is really offering this for a real time, locationing, where our tls system.

The church spread spectrum is great for long distance low power robust.

Communications and applications.

That covers both indoor and outdoor spaces, and we'll talk about some of the applications.

And into it provides it at a lower maintenance costs has less battery replacements and really provides better results. When you have challenging radio frequency environments.

And then finally management, we also picked.

More ultra wide band capabilities, we certainly had some of our own we've announced our own you'd be.

Sensors and certifications along with that but the management acquisition really gives us best in class you WB technology.

A great team and expands our GWB.

Arctic line.

The new capabilities are really distinguished from our own technology, not only as it relates to the types of tags in anchors, we are able to leverage across 36 cases, but also the way or methods in which the positioning occurs I remember I was talking earlier about.

Really getting our projects products to be more Intel.

Print.

One of the things that now.

And John brings is the approach that they use for positioning devices or tags or assets et cetera is different than the approach that infection has been using we've been using a methodology called ours. This I'm not going to get into the technical details here, but now.

John uses some other approaches like time difference of a variable or time of flight. We're looking at combining these methodologies and layering them on top of one another to really create the most accurate the most precise position for our customers because the better accuracy and precision that we offer the better and higher.

Your value that creates for our customers. So we want our products to be truly intelligent and delivering value for our customers and it will really help us differentiate ourselves amongst the competition.

Lots of our competition is really just based on Wi Fi today, they are trying to add.

Whether it be Bluetooth office.

Some ultra wideband capabilities.

We are by far are going to have an opportunity to.

Be leaps and bounds ahead of those folks and if we want to be that 800 pound gorilla that I talked about in this space and this is what we need to do and Thats why weve been making these acquisitions and moving forward with this business plan.

The total impact of all.

These capabilities I've discussed really gives us a significant technical advantage and as I said I don't think any other provider in the market can can do that today.

So let's move on to the customer experience.

What do all these technical advances mean for that right. So advanced way finding.

You touched a little bit about the 10 degrees intelligent on device physician piece, if you take that with our maps.

We can offer way finding that's intelligent four offices hospitals casinos resorts think about.

All the hallways in quarters, you'll now be returning to.

To better one way they used to be two rate right. The the best.

Path from point, a to point B may not be the shortest anymore. It may be longer route, but it will be the safer route right. So intelligent way finding.

He is going to be or is a necessity now and we're seeing that with our customer.

Summers coming up again, and again that we're going to have to implement and we have those capabilities.

Asset tracking is another use case that we haven't spent a lot of effort in the past and fiction focusing on.

With that Im trying we bring additional capabilities to really.

To be able to deliver on that as well as for dense.

Rentals, they have deployed millions of tags for tracking assets people livestock et cetera.

Whether its pilots products machinery or equipment, there's a need and hospitals manufacturing warehouses, and nanograms, CERP and ultra wideband technology.

G strengthens our rtms or asset tracking capabilities.

In the space.

And we can also leverage the same capability into verticals that nanostring has not been historically been in for example, corporate offices government agencies hospitality casinos.

In fact, one of our potential customers evaluating our asset tracking tags to be used for tracking totaled 19 vaccine candidates.

Another one is using our solution for tracking bikes and other assets on their corporate campus.

And really allowing.

As to leverage the indoor outdoor functionality that.

The manager on Chirped technology can provide so we're already starting to see not.

Not just how we can leverage those technologies the cross selling opportunities.

Proximity alerts is another one that I think is an important customer experience that we can now offer because of the technology that we picked.

I mentioned, two way ranging earlier right and talked about how that could create alerts for social distancing purposes. We.

We have a solution called workplace readiness, that's really targeted towards how to deal with COVID-19 in and the consequences of this pandemic so for social distancing four contests.

Tracing.

Our understanding where your office.

Office or hotel or areas that need to be given a deep cleaning center are all part of workplace readiness now with two rate to a range and we can also add this individual alert capability that we couldn't deliver before so now.

So if you're walking in the office or in the hotel and casino and you're getting in close proximity to something shorter than that six foot distance you can have your tag or your app on your phone be triggering an alert or buzzing or vibrating. So their additional ways that we can use this technology, which was being.

As for other purposes before but to address what we're facing today on a global scale.

In fact, some of this technology is being used for mining and transportation worker safety collision avoidance.

So the chair piece in combination with ultra wide down here can be use for.

For these types of solutions. It also is.

I have been able to solve a problem that we were discussing with a cruise line customer and potential cruise line customer for.

Being able to do contract chasing on the ship and off the ship.

Ultra wideband is not going to be effective outdoors offset mature can solve some of those problems.

And so we're looking at how we may be able to leverage this for those reasons.

Ultimately our customers are just like you and me right. They they want the most value for the least amount of effort.

And they don't want multiple vendors offering different products, which resulted in inefficiencies fingerpointing and increased costs that.

Thats why one integrated platform was the right decision for our customers and for our business.

It allows us to grow and scale. This business because we can also charge a higher ASP now that we're bundling all of these.

Different products into one integrated solution.

And it creates a sticky miss factor rate increases customer attention.

So that leads into my third point about the business impact.

So these things that we've been working on in terms of expanding our technical capabilities and improving the customer experience.

Through these acquisitions and through the product capabilities that we've built in house.

Also improve our overall business and Mark.

And the presence in a number of key ways.

We've seen revenue growth again, both organically and through acquisition as indicated in our financial results today.

Demand from acquisition also opens up a new revenue opportunity for us in terms of selling components, we've typically sold and products for.

Fully baked sensors et cetera. The management also sells chips and modules that integrators and Oems build into their products. So we're like the Intel inside to their device. So it's powered by infection and these kind of deals have the potential to grow sales pretty fast because you can sell one order that goes into thousands of their units. So we're excited.

What about growing that business as well.

The neutron insist that acquisitions have both been accretive transactions, helping us with our goals to work towards positive cash flow.

There are also diversifying the risks associated with our expanding business, we're not just focused on.

Thanks readiness solutions were not just focused on corporate office spaces.

We weren't in the past, but now we've got more diversification than ever right Weve with the noninterest acquisition. We are now in verticals like.

Like mining and livestock that I would not have guessed or plan to be in werent.

Well construction and manufacturing.

On some of these are essential businesses that will continued despite sheltering in place.

But they have also created good opportunities for our workplace readiness solutions.

And you know.

Additional use cases, right so the collision avoidance RTL.

Since intelligent refining that I've talked about.

We've also diversified and expanded our customer base so diversified.

In terms of geographies right. So were in Europe, Middle East South Africa, but also in terms of.

The types of customers that were dealing with their end customers were dealing with.

OEM.

Yes, and systems integrators that are our customers.

And we're dealing with customers in a variety of industries.

We've also been building on the channel partner in distribution relationships and.

Now I'm trying to add on to that so we for example, we have been working with Lenovo, we manage on now.

Now we've added arrow and Digikey.

And we look forward to marketing all of our products through their distribution channels.

And being more vertically integrated reduces our overall costs and increases our speed to market and the ability to innovate where others simply can't on where we.

On the public company in but we're still nimble and we're still agile and were able to.

Bring these products together and really get out to market quickly with integrated solutions that others are not able to offer.

So as you can see we've made significant progress for the business as a whole.

And I think that the results will continue to.

Sure. So as we move forward into Q4 and beyond so with that let me turn it over 20 Lenderman, our CFO for the financial discussion and then I'll come back with some concluding remarks Wendy.

Thank you now.

Revenue for the three months ended September Thirtyth 2000 $22.55 million.

Thank you one plant by $3 million for the comparable period in the prior year for an increase of a little over $1 million or approximately 66%.

Increase in revenues in the third quarter of 2020 compared to the prior year period, and 2019 was primarily attributable to the increase in sales of our aware and mapping product line.

And the addition of sales from the recently acquired says that licensing product line.

Gross profit for the three months ended September Thirtyth, 2020 was $1.9 million compared to $1.2 million for the comparable period in the prior year for an increase of approximately 66%.

The gross profit margin for both.

Berryman.

Ended September Thirtyth, 2020, and 2019 were 75%.

Last from operations for the three months ended September 32020 was $6.2 million as compared to a loss of $5.7 million for the comparable period in the prior year.

This increase in math.

Approximately $500000.

Right.

Primarily attributable to higher operating expenses Outback offset by increase in gross profit for the quarter ended September 32020.

Net loss attributable to stockholders haven't picks and for the three months ended September Thirtyth 2020 with.

With 7.5 million.

Billion dollars compared to a loss of $6.6 million for the comparable period in the prior year.

Hi, or loss of approximately $900000 with.

Was attributed to higher operating expenses.

Valuation allowance adjustment offset by the increased gross profit during the three months ended September Thirtyth 2020.

Non-GAAP adjusted EBITDA for the three months ended September 32020 was a loss of $4.6 million compared to a loss of $2.4 million for the prior period in 2019.

Non-GAAP adjusted EBITDA as defined as net income or loss before interest provision for income taxes depreciation amortization.

Station plus adjustments for other income or expense items, non recurring items and non cash items, including stock based compensation.

Pro forma non-GAAP net loss per basic and diluted common share for the three months ended September 32020 was a loss of 13 cents per share compared to a loss of $7.

44 cents per share in the prior period in 2019.

Non-GAAP net loss per share is defined as net loss per basic and diluted share adjusted for stock based compensation amortization of intangibles provision for doubtful accounts severance costs acquisition costs.

Cost associated with public offering and then one.

Time charges, including loss in exchange for debt for equity in valuation allowance adjustment.

A complete discussion of our nine month results is available in our form 10-Q that will be filing with the SEC.

In terms of our balance sheet cash on hand at September 32020 was $31.4 million we have.

Positive working capital of approximately $23 million and our total shareholders' equity of $39.4 million compared to $6 million at the end of 2019.

This concludes my comments and I'd like to turn the call back over to another.

Thanks Wendy.

So as we talked about today in fiction enhanced.

Transformed financially and operationally to position insult to become the leader in indoor intelligence we've.

Weve expanded our IP portfolio, our product offerings and customer base in diverse geographies and verticals to drive growth and minimize risks.

Our use cases ranged from safety and security to actually track.

Walking through intelligent way finding.

No. Our cobot has certainly created awareness around the value of indoor data our customers are seeing the value beyond just contact tracing and reopening their offices.

From from provisioning assets for employees to visit her management, we're optimizing building management systems indoor data will continue to add value.

Customers.

While our revenues were up 66% over the same period last year, we are still in the early innings of a massive addressable market.

We're building a scalable business model with high gross margins focus on increasing our annual recurring revenue, which will help us get to positive cash flow and we believe create shareholder.

About.

I'd like to thank all of our shareholders investors for your continued support.

We look forward to providing additional updates in the weeks and months ahead.

With that I'll turn the call back to David Waldman Investor Relations, we'll reap some questions that were submitted in advance.

David.

Thank you not ours, so just to give everyone a heads up some of the questions weren't duplicative. So we get our back to combine these questions where possible. If you have any questions. After the call feel free to follow up with Investor Relations and will be short respond as quickly as possible.

So our first question is.

Congrats on a strong quarter given the weakness in the share price when management or board members consider buying stock.

So let me start by saying.

We share our investors' frustration over the share price and.

We don't believe it reflects the fundamental value we've created.

We're doing better than ever and yet we've had significant erosion in in the in the share price.

While I'm not at Liberty to comment on specific plans for myself or other members of the team or the board I can say this is something that we have looked at subject to certain blackout restrictions and we'll provide further updates.

If and when.

Hopefully.

Thank you. Our next question what is management doing to keep the stock above a dollar and doesn't pick and plan to do a reverse split.

We have no plans for a reverse split I would I would say that our ability to continue to execute on our growth plans an increase.

And our market share in all the ways, we discuss today.

Which continues to result in strong revenue growth year over year, even during such a challenging time.

He is reflective of the effort that management is really taking to increase the stock price. We expect continued strong financial performance and are fully focused on increasing shareholder value.

Well, we expect that the market probably ultimately recognize the long term value we are creating for.

Our shareholders and I hope to that'll help mitigate any concerns around the share price.

Thank you. Our next question clearly revenue is growing very fast when do you expect.

The company to achieve profitability.

Good question I mean, so we havent given any specific guidance, but as I mentioned earlier were focused on building.

A scalable business moving forward and we're moving more and more towards a fast or annual recurring revenue business model. So.

So as revenue continues to grow we expect to generate high incremental margins. So we believe like other high tech companies, it's important to invest in the business, we strongly believe that growing our revenue.

And capturing market share should be our number one priority at this stage.

Given the size of the market and as we do.

Do that.

That will get us to profitability.

Okay. Thank you you mentioned, you're working with Fortune 500 companies can you give a better sense of the types of companies and some examples of the work we're doing for them.

Yes, I mean look this is a.

Question I get periodically and most of our customers don't allow us to use their names but.

I can certainly share types of companies. So for example, we're working with a multi billion dollar technology company.

Looking at managing employees and visitors.

They started that initially for security purposes.

But now we are also leveraging that for contact tracing.

They reopen their offices.

Were in discussions we are in pilot with a pharmaceutical company for our mapping and asset tracking capabilities.

We also have an international hardware manufacturer that's.

Thats.

Hughes, our mapping and way finding on their campus as they implement.

Booking and Hoteling for their office space.

I'd also add that our pipeline is growing pretty significantly as companies look to come back and reopen their offices, we're engaged in discussions with a variety of companies in.

In technology manufacturing hospitality.

Looking to the government agencies and others.

And I've been listening into some of these customer calls and its clear customers had some real pain points that we can solve for them as a reopening such as contact tracing and social distancing, but also some that are more long term with.

The way finding we've talked about our asset tracking and other.

Other security use cases, so I'm very optimistic about where we're headed and what I am hearing from customers.

Okay. Thank you next question does the company plan to raise money again.

So look we have a strong balance sheet and while we have access to the ATM.

You know it's been used on minimal occasions over the last few months.

We may use it Opportunistically York needed in connection with our acquisition strategy, but we're really focused on executing our business plan and generating continued revenue growth.

I mentioned earlier, we believe the shares are.

Very undervalued and we're hopeful.

With continued strong financial performance.

And the upcoming milestones, we have we can unlock value for our shareholders.

Thank you. Our next question, we see that you have continued to hire can you expand on if and how these hires are helping to generate additional revenue.

Will that.

Yes, I mean thats. The short answer is yes, and we are hiring primarily in.

You know sales marketing customer success really focused on enterprise and government sales reps and.

And folks that can help drive growth and revenue.

And making sure our customer experience that I talked about earlier is on track. So we're focused on scaling this business and that that require some upfront investment in these areas.

We're also using.

And outsource Legion from which has been very effective in setting up meetings and.

Again, what what we're.

We are hearing from them as priorities from these customer calls and conversations or are around contact tracing occupancy analytics and intelligent way funding. So.

Yes, as we make progress on the sales front, we also need to make sure. We've got the folks here to be able to support those customers Thats Thats why we continue to hire.

Thanks. Our next question is non Itron generating revenue right away and has infection added to their projected revenue stream.

Yes, so they're not in our Q3 results since the noninterest acquisition closed in October, but yes, absolutely they have been generating revenue for years and and you'll see that reflected in our four.

Fourth quarter results.

We're also seeing cross selling opportunities already so for example, I mentioned.

Cruise line company that wants to do some contact tracing on ship and off the ships are using now tons chip technology could be a great fit there with our ultra wide band solutions. We're also bringing some of the downturn capabilities into construction.

Project opportunity that was already in our pipeline so.

There's definitely revenue impact on that you'll see in Q4 and then we're also looking at the cross selling up selling opportunities.

Great. Thank you. Our next question have you reached out for any koby related government funding to help your bid.

Business.

So we did not receive any covered related government funding, we looked at it towards the beginning of the shelter in place directives and.

And ultimately determined that we weren't eligible given our access to funding through other sources as well as the fact that we didnt have any operational cuts we continue to see growth no layoffs et cetera.

And so.

We did not receive any related government funding.

Okay. Thank you our final question for the evening can you elaborate on specific effort. The company is undertaking in terms of contact tracing and to position infection on the front line in terms of co bid.

Yes, we definitely made no significant.

Sales and marketing efforts to create awareness around in fiction and our.

Workplace readiness solution, which we feel is really an enterprise level contact tracing solution.

It's critical for reopening businesses and governments.

Yes.

To me Thats, how were going to reopen companies will have to have something like this in place. It minimizes transmissions in the workplace among employees, which impacts the families, which then impacts communities I mean, thats why Taiwan has been so successful is because of their contact tracing program and so to do here in the us it at our scale.

You need to use technology.

And I think even with a vaccine it will take time to deploy and there will be flare ups.

Mutations and think that we will have to deal with.

And so keeping that in mind.

I think it's.

It's definitely been a way for us to engage with customers and help.

Them think about contract tracing as they get back but it also has given us an opportunity to talk to these customers about our how our indoor data into intelligence can be used for other use cases rate.

And so whether it's the building management optimizations or asset tracking work.

Intelligent way finding.

They are.

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