Q4 2020 Digital Ally Inc Earnings Call
Yeah.
This conference call may contain.
And for forward looking statements within the meaning of section 27, a of the Securities Act of 19, and thirty-three and section 21 E of the Securities Exchange Act of 1930 for the words believe expect anticipate intend estimate may should could will plan future.
Do you and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters identify forward looking statements. These forward looking statements are based largely largely on our expectations or forecast of future events can be affected by inaccurate assumptions and.
Kentucky to various business risks and known and unknown uncertainties, a number of which are beyond our control. Therefore actual results could differ materially from the forward looking statements contained in this document and readers are cautioned not to place undue reliance on such forward looking statements digital ally will undertake.
And interesting Asian to publicly update or revise any forward looking statements, whether as a result of new information future events or otherwise and wide variety of factors could cause or contribute to such differences and could adversely impact revenues profitability and cash flows and capital needs.
No there can be no assurance that the forward looking statements contained in this document will in fact transpire or prove to be accurate. Good morning. My name is Sia and I will be the conference operator today at this time I would like to welcome everyone to the 2024th quarter and your and operating results conference call. All lines have been placed on mute tupi.
But any background noise. After the Speakers' remarks, there will be a question and answer session. If he would like to ask a question during that time simply press star and the number one on your telephone keypad. If you would like to withdraw the question press. The pound key. Thank you at this time I would like to turn the conference over to Stan Ross. Please go ahead.
Thanks, everybody for joining us today.
And I'm excited that.
Recap a little bit of 2020 as much as thats been a tough year for a lot of us individually and personally and incorporation wise.
We're proud of the digital ally team and and the way they were able to adapt and.
Really pull out some really.
Amazing things during 2020 on top of that we also will be elaborating a little bit on that.
Some recent activities that that we've had and the first quarter, which.
They've been pretty exciting and give you some insight on what we see the future of digital looking like.
Coming through 2000.
A day, one and and beyond but again I just can't.
Thank you everybody enough for all the things that they've done and sacrifices they made to have.
For 2020 would be a much better year than what was originally thought it could be win win the pandemic struck so today I have Tom Heckman.
20th CFO with me are.
Tom's going to recap the 2020 numbers and even give you some insight on the status of where we're at going into 2021.
And activities that will be mentioned.
And the 10-K that will be filed shortly but Tom I will turn it over to you.
Stan and I appreciate.
And then the somebody joining us this morning, I do want to.
Thank you Ware.
Going to file the form 10-K. This afternoon and there has been some FCC connectivity issues and I hope don't delay it too long but.
Please please take a look at the form 10-K its more.
Appreciate it.
For view of what happened during 2020, and where we're sitting at at the end of 2020.
If you look back we entered 2000 and the year 2020 with a lot of challenges quite.
And quite frankly, one of the biggest challenges we had was was the NASDAQ.
And C letter that we had received regarding our share price as well as our net equity position and.
And they gave us a certain deadlines to meet those continued listing provisions in order to stay listed on the NASDAQ. So obviously that was a that was priority number one that we had to get to.
Also we had a.
What I would call a difficult liquidity position, we entered 2020 with less than a million dollars of cash and working capital combined.
We had a net stockholders deficit of $6 3 million and on top of that we really didn't even realize COVID-19 was around the corner.
And it hit us and the March April timeframe.
And before we knew what we were and are depths.
The Covid pandemic and the crisis net obviously changed the dynamics of the business and how we.
And how we were going to try and grow the business.
And we were at that time looking for new revenue channels.
Thought that our new situational security involving NFL teams and baseball teams and basketball teams and whatever it was.
Going to be a rich source of new revenues for us and of course COVID-19 pretty much shut that down. So 2020, we began it with a lot of known.
And we choose and unknown issues represented by the Covid.
Pandemic.
Here's the actions that we took early on and throughout the year that debt made made I think 2020, a very successful year for us first and foremost we raised approximately $22 million of cash through.
No niche offerings, including convertible securities common stock and warrants.
With that cash and net debt capital raised we were able to take care of the NASDAQ deficiencies and gainful for listing status and we haven't looked back we've not had any problems with that so that was that was one of our biggest issues.
We took care of through the raising of capital.
We also paid off virtually all of our interest bearing debt during 2020 with the 22 million of cash and we raised.
And we invested and some new channels, including the new <unk>.
Yield product lines, including thermal view and the shield disinfectant and.
And somewhat into.
<unk>.
Other PP&E PPE lines as well.
We also use some of that debt capital raise to expand our subscription model and both our legacy law enforcement.
And as well as commercial business.
That takes capital outlay upfront.
And two because we have to buy and produce the software and hardware.
And two.
Send out on the subscription model and then we get it back on a monthly payments. So that took some cash to do.
We were also able to terminate the litigation financing obligation and we had on the balance sheet.
Six and a half for $7 million going into the year.
We were able to to terminate that.
And it resulted in a $5 million gain force during 2020, so we put that money to work we got the results we wanted.
And it reflected in.
Our 2020 operations as well as for balance sheet.
At the same time and primarily.
I mean, we were undergoing a review of our SG&A spend.
At the time, but because of the Covid crisis or a pandemic. We we really had to look at SG&A and we did.
And my view, a very good job of it if you exclude what the Watchguard settlement, which happened in 2019, which was 6 million Bucks, we reduced our SG&A spend in 2020 by $5 $7 million over what the SG&A spend was in 2019 net I mean that was a very very well.
Needed a change and we were able to affect that and we're going to reap the benefits of that going forward.
We did apply for the P. P. P. P P loans.
As well as eat of loans from the SBA, We got about 151 6 million.
And that the PPP portion was actually forgiven later and a year and that was a million for and change or so so we did that action as well so.
We are successfully handled some of the challenges early on.
And then if you look at the the.
And the P&L for two.
And a 20 regardless of the.
The COVID-19 pandemic issues and how it reduced all the travel budgets and and.
And our ability to get in front of new.
Customers and and even service existing customers, we were able to increase our product revenues by about three.
$300000 or roughly 4% year over year, a lot of that was due to our new shield product line, which contributed about $1 6 million during 2020.
The service revenues were down somewhat in 2020 over 2019, primarily due to.
The loss of extended warranty revenues.
If you think about it when you move to more of a subscription model youre not selling hardware upfront. So you don't sell extended warranties.
With that so one would expect extended warranties to go down, but and and in which it did also our installation.
And revenues declined and that was primarily because of the travel restrictions imposed on us by the <unk>.
COVID-19.
<unk> 19, pandemic, we couldnt and.
Well, we just weren't able to get on site to make installations and so on and so forth.
We do believe that if the COVID-19.
<unk> 19 pandemic subsides like it looks like it may be here early in 2021 that our service revenues will turn around and continue its march upward, which we've actually experienced for the last two or three years.
All in all after you and you look at that our gross margin was up 20.
Covid, 6% year over year.
And that's primarily because our cost of sales dropped obviously.
What we did we moved to smaller quarters.
And and reduced our warehousing expense and such.
To make up some of that gross margin improvement as well as the.
The shield product line has a nice margin and that helped give us and increase in gross margin for the year.
At the net loss line, we improved by $7 3 million year over year, that's a 74% improvement from 2019 to 2020th the net loss line. We're.
And not breakeven, which we hope to be in 2021.
It's certainly better than we did in 2019, and we're going in the right direction, regardless of the challenges that we had to deal with in 2020 at the end of the year, we reported a vastly better balance.
We're still and you look at our balance sheet year over year, our cash balance sheet at the end of 'twenty was was $4 million versus 350019, our working capital our positive net working capital balances and $14 million at the end of 2020 versus 765002.
She's 19 quite an improvement our stockholders' equity increased to $14 million versus a deficit of $6 million. So really a turnaround at 20 million bucks year over year, our debt obligations are now down to I think we have 150000 160000 left.
<unk> thousand eat alone, which is the SBA loan and and that's a long term payout.
Versus $8 3 million in 2019, so quite a quite an improvement and the balance sheet here.
Year over year, and because of the the improvement and the balance sheet, we were able to pull out the going for.
The language that was has been and are our financial statements. Since 2017. So if you look at 2020, we don't have the liquidity and disclosures and the the exception and the audit opinion regarding.
Regarding our going concern opinion so.
And we're very proud of that.
And certainly having accomplished that and in a year like 2020.
Recently, and I hope everyone has seen some of the eight Ks that we filed and we completed two shelf.
And two draws on our shelf registration totaling about $66 million and new capital.
That's all straight into cash which sits on our balance sheet as of today.
You might ask why we did those raises and obviously we looked at the conditions of the market. We thought the pricing was favorable given the uncertainty of the Covid crisis, and how that was going to.
And having built out in 2021, So we went ahead and and Florida those too.
Public registrations and raised $66 million, what that will allow us to do in 2021 and beyond is really invest in our business.
And what we mean by investment obviously.
There's two ways you can do it organically or you can do it through acquisition and we're looking at both.
And we've had no commitments net nothing and riding.
Nothing certain are definite, but we have talked to several acquisition candidates are multiple acquisition candidates some of which have.
And more appeal to us than others, some that are or cash.
Couple of minutes and complementary to our current product line and some that are completely out outside of our current product lines. So we're looking at a lot of different candidates and.
And hopefully we'll be able to to nail one of those down and one or two of those down and use.
Some of the cash to grow the business.
Through acquisition, we also plan to grow organically through expansions, primarily and our shield product line.
We're looking at adding new PPE offerings.
And that come along with long term contracts supply contracts.
And with with hospitals, and medical organizations and that and where.
We're also looking at introducing a new and electrostatic sprayer that would be complementary to our shield product line kind of the Gillette razor.
Model, where you sell somebody a sprayer and then they use our shield product.
And so and we were looking at and a lot of different ways to grow the business. We've got the flexibility now having that cash sitting on our balance sheet.
And we're not going to spend it foolishly, obviously and and not not looking at the moon shots or anything but there are some some candidates that we have interest in and hopefully.
They'll they'll progressed as some some type of.
Transaction down the road.
All in all 22020 was a very challenging year, especially early on but you can see that based on what we were able to accomplish in 2020. We entered 2021 is a much much.
Much stronger company and.
And we now have some flexibility to grow the business and hopefully return value to the shareholders and with that I'll now turn it back over to Stan Yeah. Thanks, a lot Tom It began and like I said 2020, while there was.
Early on and everyone was.
And quite.
I guess nervous.
Service and onshore.
And I'm sure, what how 2020 was going to play out but.
Turned out to work out pretty good for us with the some of the moves that we've made and and again I think as Tom said that the shield product line, we will continue to expand and we continue to get a tremendous amount of traction there and continue to be.
Excited about the future that it holds.
A couple of the acquisitions and stuff that we've looked at while Tom said, we're definitely do not want to be foolish.
We want to make sure that it is strategic.
And it brings immediate value to the company. So those that we've looked at you know we've.
Talked about pricing sometimes.
Some people are drinking and their own Kool aid and not only their own Kool aid, but it may be spiked.
For the valuations just arent realistic and at the same time.
The opportunities continue to pop up.
A lot of good companies out there because of.
Covid and the.
The climate.
Unable to have access to some of the capital that we were fortunate to have and and so we often get a look at some very.
Nice opportunities that as things continue to progress back to little bit enormously.
And would be really good opportunities for digital ally the other thing.
Thing that I want to not lose sight on is our law enforcement, we have had a tremendous amount of.
You know positive reception to the subscription model that we're going with with a lot of the law enforcement agencies and first responders.
Tax rolls were down for a lot of communities and and that being said you know not a lot of money as is.
Flow and for upgrades and police agencies. So the fact that we can sit there and assist while theyre getting their feet back under them.
And also looking for a national.
Package and that'll be coming into play we truly believe because we've actually been asked to comment on some of the.
And I guess some of the legislation that's being talked about.
We do look for law enforcement to get some national funding.
To assist you.
And the communities that are out there so.
We also have.
And given up on our R&D for as a research and development with new products and law enforcement.
Very excited about our our next version of our body cameras and quite a unique product with a tremendous amount of features.
And that.
And that is getting ready to be launched right away and so we ought to be.
And excited for the what it will impact it could have and the industry and.
Even having the opportunity to get back to like the ICP, which is the international Association of Chiefs of police.
Conferences, where you.
You really get to showcase some of your new products.
The EBIT products for body cameras are still doing very very well shield products.
Excited about its growth I think I may have said this that I mean, you really will see and 2021 and the impact that the shield line will have.
And for digital ally.
And then hopefully some very nice strategic acquisitions will be done.
Would that be and said I think we will go ahead and and open the floor up for a Q&A.
Thank you Sir at this time I would like to remind everyone that if he would like to ask a question you May press star followed by the number one on your telephone keypad again that's star.
And then number one for any questions, we'll pause for just a moment to compile the Q&A roster.
And again, ladies and gentlemen that star one for any for questions.
And the first question will come from Rob.
<unk> D and <unk>.
<unk> with Aegis capital. Please go ahead.
Good morning, gentlemen, thanks for taking my questions.
So I think in prior conference calls and you've talked about.
Some of the impact obviously of the Covid hit on the commercial side like taxi cabs.
We're starting to hear some data points now like American Airlines for example talked about.
And your first quarter being better than expected are you seeing any of that.
And data points coming in that line of the business.
Not the tourism is dramatically picking up and at least maybe bouncing off of loans are you seeing any of that I wonder if you could just add some color. There. Thanks, yeah, great question, and yes, I mean with Covid.
And then we had.
A tremendous amount of Av.
And the client base out there that were on either monthly subscriptions are annual subscriptions and <unk>.
I think you've all heard US mentioned before you know that some of the <unk>.
Customers that we have and the cruise industry and so as.
As well as we did in 2020.
We actually had very little.
Very little contribution from the tourist and industry for sure but that also clearly impacted the thousands of taxi cabs and we have our equipment in.
And other areas as Tom mentioned earlier for Us this.
Sporting events now that being said.
We are seeing net pick back up we know even the some of the cruise lines are starting to sail again, clearly the taxi cabs and <unk>.
<unk>.
Picking up for US again, we're seeing.
The overall commercial side of our industry picking up so.
And I'm glad you brought up that question, we really didnt address it but yes.
That was majorly impacted in 2020, and we have seen it.
And started to revive itself and we're working very hard on continuing to grow that area as well.
Great.
And excuse me and maybe a follow.
Question on the <unk>.
And boy Kudos to you guys for just responding to need and just rapidly addressing it and driving it and I think you said $1 6 million and.
And revenues for the for the year from that so.
So.
As we look at that business going forward.
Yeah.
We did I guess, there was a bit of a drop.
Off from Q3 to Q4 was that just your initial sell into your customer base and Q3.
And.
And so just you're getting more of those replenishment orders in Q4.
Just wanted to clarify that it doesn't seem like demand for that product would be declining and anyway.
I Wonder if you could just.
Touch on that.
Yeah.
And then euro.
Right I mean, we were able to fill the immediate channels that we had.
Found ourselves and a little bit of a.
What do you Wanna say bandwidth problem in regards to the fact that we need to bring on additional salesman and and reach out there a lot of.
And we're doing we're going to some.
And users because our margins are so much greater but the demand for the product I think and the volumes that we're going to start to do will allow us to and maybe.
Go ahead and go into some very large distribution channels that should increase the topline and granted cut into the margin.
But we feel pretty confident we're going to be able to make up.
For that with the quantities that we're gonna be able to manufacture and and just our buying power and be much stronger, but youre right.
Very early on and we build the GAAP that we can feel and we're sitting there with very little inventory at the time.
And a little bit we've got the supply chain our inventory.
I think under control and continue to interview almost daily for.
People to bring on to continue to expand the line and major accounts I think I'm not going to be surprised and I don't think anyone on this call should be.
Jim.
If you don't see some nice announcements.
Possibly even at the consumer level, which I do believe that's where it's headed.
With the shield products and the shield line.
Really continue to refine what all we were capable of offering.
Sure.
And hopefully some national chains.
Let's say the home depots of the world and whatever you want to say.
Picking up this.
Particular product line and there'll be and the stores very soon so exciting.
Optimistic about shield going into 2021.
Great and maybe just one.
To work and for me.
And obviously you see the language you put in about in the press release about it.
Major contracts for the for and.
And National Police force for the 5000 cameras.
And just any color you can add their standard and I. I mean, you know you can only say so much I'm sure but.
Is that looking like.
Alaska.
And.
And then just anything you can add that you feel comfortable adding.
It's one of those one of those.
We continue to have talks continue to be.
On the doorstep, we continue to be there for when they are ready.
And obviously.
Product that they were interested in.
Almost well over a year ago clears.
Clearly as.
I think the new product lines will even be more.
Attractive to them so I.
I think it's just unfortunately, it's the balls and their core.
Yeah.
The product that they need at the price they need it with the features that over and above what they are asking for.
And just got to see if they could get all their capital and <unk>.
And I'm comfortable and pulling the trigger and I think I think that'll happen when they also start seeing a lot more tourism picking up.
It's very important.
We've got them for that so I just think it's a matter of time, but I still believe it's going to happen.
Okay.
Thanks, so much for the color guys and look forward to seeing our upcoming announcements appreciate it absolutely. Thank you.
The next question will come from Bryan Lubitz with Aegis capital. Please go ahead.
Good.
And so nice.
Good morning, Brian.
So a couple of things I wanted to touch base on and Tom You had mentioned earlier and the call S.
SG&A, if you guys strip out the 6 million charge that you had for <unk>.
Guess litigation and the past with the connection of the financing.
Does.
And got them down to a roughly 40% and year over year decreasing as my numbers right there.
Well remember that that was a patent litigation settlement that was with watchguard that wasn't necessarily the PAA, but.
Let me check.
And that.
And.
Sure.
Yeah, SG&A was down five 7 million if you exclude that onetime credit that occurred in 2019, so $5 7 million, yeah, yeah, and it's well.
It's well over half put it that.
And I hear from from.
The year before.
Awesome and then.
And then going towards your cash position you guys mentioned that you had 14 million at the end of 2020. We also the reasons that you did this year, so far the 30 million and and the 40 million direct offering.
Which Tom you said the proceeds.
That away for a 66 million. So you guys are sitting on roughly $80 million cash right now.
Well actually we've got for we had for May and at the end of the year not $14 million.
And then we've raised $6 66 net.
As I recall and Thats about what we have on the balance sheet as we sit today.
And the things we did Brian as you know with debt capital obviously.
And that gave us a tremendous amount of strength in regards to our buying power and so instead of.
And having it sitting and some banker on the sidelines you know getting <unk> five from a bank we were aggressive.
Yeah, we're gonna be enabled them to buy and schedule some components that probably saved us $35, 40%.
For the original costs that we were having to pay because of the smaller quantity. So we put that money to real good use but still just set amount.
Real nice amount of cash for those opportunities.
And then we're looking at.
Alright, so that that.
That leads me to where I am now.
65 million and cash if if we stripped out those numbers and what.
For your guys thoughts and the fact that your market cap is almost identical that you're trading of cash.
Yeah.
[laughter].
Is that where youre the broker.
Brian.
I don't get it I don't get it and I know theres a lot of value.
And and all the divisions that we have right now whether it be law enforcement commercial or the shield product line.
And to be trading close to what's the equivalent of our cash balance.
Yeah.
We just got we haven't done and we got to do a better job and getting the word out there concerning.
The potential that the digital ally has and and hopefully that appreciates greatly and and the value of the company.
Okay.
<unk>, Yeah, it's mind boggling to me so I.
Just wanted to know what your guys thoughts were on that now you've mentioned earlier the electrostatic sprayer that you guys are in development on.
Is that for a service part of the shield product line and you guys looking to utilize that in other areas.
And so.
So there's a couple of things not only the service side, obviously, you know for when we're doing.
Special events, whether it be you know football or whatever we can go in there and assist in the the disinfecting.
The product that we designed electrostatic sprayers really designed for the shield product.
It's very robust.
So it's also very very.
<unk>.
I would say compared to what the industry utilize as far as the amount of power necessary to operate it to get the.
And maximum effect, it's a lot safer and.
And also it's very adaptable and what I mean by that is that.
Just fine.
And it can be utilized and.
Number of different.
And let's say battery operated pumps, so we don't have to be.
And having the ground floor up it's more of the the actual hose <unk>.
Connected to the <unk>.
Or does hump that actually then goes ahead and pushes it on and the electro static side of it is happening right. There at the end of the of the hubs. So it's a lot safer that way as well to where it's not part of the overall package.
And I'm excited about that but we do look at possibly go onto box stores with it once.
And that really defined we finished the soft tooling and we've got 100 units that are already coming off the line and getting built and we're going to hard tooling.
Should be able to do.
And think it was 250000 and it was a big number for us the Cape.
Capabilities and that that particular tool.
And we get it and that.
And that will help us a lot on pricing and we.
Again, it too will have a nice impact here in 2021.
Alright, so I have two more and thank you guys very much for your time.
Obviously that sounds exciting it's another new line, which obviously you get a couple with the shield.
The other line that you guys came out with last year, which was.
Exciting for US was thermal view.
With the distribution deals with think equity where are you guys with that because we didn't really see much of an update here on the thermo view and and any of this.
These press releases, yes, still still very good demand.
For the product I think people are starting to also understand the capabilities of that product whether it be.
And being able to connect up to a certain doors, whether it be even.
One of the models will sit there and do facial recognition, whether it's facial recognition or just wanting to identify whether or not and individuals has their masks.
And on.
And then you also have the the top of the line unit and which.
You can put in a school hallway and as kids are going from plastic class or two.
And to launch it can identify and someone's running a fever. So I think we're still going to see a good demand.
And that particular product and.
<unk>.
I don't anticipate it tapering off very much at all.
And it's just a matter of.
I'm not going to say people and were putting their guards down, but they do believe a little bit and the vaccination and regards to Covid and we clearly believe this is a product that will last and the shield products last way past COVID-19 and and Thats.
And surpassed because.
For the bottom line is you know if you're if you're running a fever, there's something wrong and so it may be just the common.
Flu, but you know you don't want that individual coming in and are infected and a whole bunch of kids and or co workers are.
Moving into a restaurant so we are seeing.
Thats all avenues everything from I think <unk> said from hair salons to restaurants too.
We had to go to.
Children's Mercy, you, a while back and sure enough. There is our device at children's Mercy Hospital, I know that some very big names.
Corporations that have them at their corporate headquarters.
And.
So there.
And there may be you has lived up to expectations and I believe it will continue to do so.
Awesome, all right, so listen I lied I actually have two more but I'll do it and one question and I'll I'll do it is two part.
You guys bread and butter for the last you know.
Seven eight.
<unk> been dealing with you has been with the surveillance cameras inside of the in car dash and as well as the body cameras.
Last year, obviously, we saw a major spike and our stock coinciding with what took place for George Floyd and we've been hearing for a long time that there's going to be the police Reform Act.
Yes, and first part of your question is you know obviously, we've seen the police Reform Act passed in the Senate and we're hitting the president's tweet about it as well as.
And hopefully getting a pass and the house what are your guys thoughts on that and where we can make traction moving forward. If that is enacted and then my last question is kind of a piggyback from what we.
Earlier in terms of your capital on hand, as well as your market cap are you guys looking to put into effect some type of a poison pill to protect us and our our cash position that we have here right now and in the future and we tried last year is that something you guys got to look to do this year as well I think we've got.
<unk> talked about again, I mean and.
And that's going to come down to the shareholders.
<unk> allows us to you know to authorize a preferred series of of stock.
That's really the only way that we really can get creative in regards to.
Got it.
And having the capability of putting in some type of poison pill. So it's definitely on our minds I mean, you would hate someone would come along and Bayou with your own cash and unfortunately trading and where we're trading that I mean, that's about what they could do.
Modest amount of leverage and Youre sitting there with the amount.
Should we have so it's concerning to us Brian we're going to do the best for Canada.
No.
Get out there and make sure the street knows that we've got a lot of stuff going on very positive and a strong balance sheet. I mean, it continues to make us I think.
Practice, but sometimes attractive for for the wrong reasons for someone coming in and not letting us.
Capital, We've got started here and.
And regards to law enforcement again.
We really do believe that that part of our business is going to continue to see some real growth whether it be.
Finally from a national level I mean, they've always had grant money, but now some of this stuff is just flat.
Finished mandate it and I think it was Illinois that past.
Some regulations that absolutely body cameras everywhere and for.
Fortunately there is some other things and their debt.
And there is getting a little pushback on.
It's a typical thing Brian and they can't just haven't.
Black and white.
Get that from the four corners of a piece of paper and here's what we're gonna do they always throw and something else there to try to find.
And I'll vote for your deal, but you got to put this in there for me and so the cluttered it up and a little bit.
But I do think that you're really going to see that getting straightened out.
And.
The boys and balloon women and blue.
They they do so much worse every day and they got to get the tools and equipment and respect.
To do their job and do it right and.
And so the money is going to flow in.
And I mean, we still talk to people about different.
Installation, all the time and how we believe.
And that we can contribute and help so I still think that's going to be a big piece of our of our growth, but again I can't say enough about the shield products and what I think that's going to.
Due in 'twenty one.
Well guys congrats on that.
The solid turnaround and your cash position and we're all looking forward to 2021, thanks for your time.
Thank you Brian.
The final question is from Charles Charles for Sheryl with TTM capital. Please go ahead.
And yes, gentlemen, thank you for taking the call I appreciate it excellent job and everything across the board.
Lets got to couple of simple questions. Hopefully you can just give me some color on this the first one would be about your cash and your arrangements.
Do you know exactly how many of the pre funded warrants have been exercised and what your total share count as debt at the moment and right now.
Yeah right right now all of the pre funded warrants have been have been issued.
Okay, Okay, and what is your current share count out right now and you don't have a number on that often and IV. The exact number I don't have in front of me, but it's roughly $53 million.
Okay, Okay, because I know it had 40 minutes, a day might be and myself and you'll find it okay and then all of those loans.
Warrants have been exercised yet.
Yes, because I think that was a big day.
Drag and your stock a lot of a lot of those people will take and then it was pulling it down.
Basically youre definitely undervalued and where you stand point about this on a cash point of view and.
And also from a product point of view, but another simple question is I noticed that you probably noticed you probably know better than I do a lot of your price on your on your website up and out of stock.
On the shield.
Products is there any specific reason is that the reason why you guys went out and picked up some warehouses to actually add to the fact that you need more inventories.
Yes.
A timing situation and what we're looking at and what are the things. We're looking at right now is actually looking at.
Some facilities that will allow us to accommodate a little bit larger inventories.
<unk> and therefore, we will hopefully not.
We'll be able to do a much larger quantities and have larger quantities on on hand, but.
It is more of a.
Supply and demand, we want to make sure and run a good amount of the products.
So that we're getting the quantity breaks and lucky.
A lot of these products that we have having a pretty good shelf life and so we can afford to sit there and say, okay, and they and they know that its coming and it maybe 30 days before they're going to get it but then they've got.
And the supply they need to handle for a quarter or better.
Okay, Great Great and then other one day acquisition.
And you guys are speaking by and whats its preliminary it's early stage.
And any kind on the side youre looking at and would it be a cash and stock Aqua and would it be just a straight cash you guys are looking for it though I think I think we're open minded about it I mean, obviously right now we would be very.
Leery of utilizing our.
Stock I mean, because it's weak and.
And like I said, we're right at the equivalent of cash but.
We're going to be flexible to.
And trying to make a deal that makes sense work.
And and.
If someone that we're looking at acquiring recognizes that maybe we are.
And the stock is valued.
Low they may want to go that route and we will make sure that we do some but probably have some real.
Caveats and Theyre in regards to earn out I mean granted they've got they've got.
Prove themselves.
Sit here and be coming in and getting a bunch of a bunch of stock and the same time, but I think I think we're open minded.
And quite okay.
The question is obviously.
Some of you and I noticed that you all star and most of you.
It actually takes a temperature by the he and correct me if I'm wrong.
Is that accurate is taken the forehead and and it still seems to me you have an advantage or competitive advantage over competitive because it's it would be a lot faster to get.
Net somewhat throwaway line by checking the he and in the face is that correct or was that false and I know you.
Correct I mean, there is not only is it faster, but youre not violating there and a lot of them and have the handheld machine or devices and so you sort of violating the six foot rule that everyone's thrown out there but.
The thing about the risk and.
You can sit there and put it up to.
And the machine, it's a much more accurate your forehead, depending on if you're been outside you had a stocking cap on you Didnt have went on I mean, it can be all over the board.
So it is.
And our opinion is not nearly as accurate and then what the risk is.
Excellent and I'll. This is my last and final.
Anil question now and Motorola just took out one of your competitors and I know that you guys and idle awesome.
And sort of a lawsuit going on with them and.
Can you give us a little bit more color on actually the losses I know you settled it and everything and as far as your new version of E V. H E coming out and you go.
And I was gonna upgrade to any anywhere near like two K or even go in.
And to that to be to be at the competitors I know right now its a rush to who's going to get there first any color on that.
Yeah, I'm real excited about the next version of <unk>.
The body camera that we have and its capabilities it at and there's.
It's going to have the capability of streaming it has.
Capability of.
Of.
<unk>, there's just a tremendous amount of features that it has and also the clarity of the the picture is.
And is top notch, but absolutely positively capital energy.
All of the above is being put into developing.
And what we believe will be one of the finest body cameras out on the market and it also ties in with our R. R.
And our Evo system or in car system, very very well again I get I get so frustrated when I when I hear of.
Situations, where the body camera was not turned on.
And when when you've got a company.
And like digital ally, who pioneered and has a patent can surrounding auto activation or our design.
That should just never happened.
Anyways for the new devices are going to be such that they may even be able to be able to be activated from <unk>.
Headquarters if.
Need to be.
And we're spending the money right.
Yes, it's going to be topnotch.
Have you considered offering upgrades to come and our customers right now that have the old versions of couple of years back now that maybe give them some sort of deal and move them into the newer product on the subscription side.
Yeah.
Have we started in them.
I would say looking at our database and see who have some of the older models out there and they they clearly will be some of the very first that we reach.
Each out to and try and put together a package for them. Meanwhile, the products that we could take us and on trade and still have a very attractive market maybe internationally or.
To a lesser capitalized entities, but.
Absolutely they they would.
Because of the the products and the connectivity they will mesh together real well so when they when they get rid of the older version for the newer version.
That'd be very compatible.
Excellent.
And my final question would be the shield product I know you got it went into a decent size a restaurant chain and is that you guys and why you weren't a major major.
<unk> Corporation that you guys are looking to get into as a restaurant field.
Well, it's clearly a good market I mean, you know the whole food industry, we've been into several.
And wanted to say national change more of them are sort of franchisees that recognize the importance of and so that has happened. So it's clearly a very attractive market for us, but I think what you can see for us the shield products, you're going to see some very large change.
Change utilizing both the liquids and some of the other products that we have coming out.
Well excellent jobs guys. I think you did a great turnaround and plus and obviously you shield product is it seems like it's a natural product and I think one and the main competitive issues is it doesn't have and older which a lot of a lot of the comments online of debt congratulations and thanks for taking my call and I appreciate it.
We appreciate it very much and I know, we sort of ran out of time here.
And so ran a little long, but wrap it up and again.
For first of all very thankful that.
For all my employees and all the things that they've done to help us achieve some of these benchmarks that we've had and and.
We're going to do our best for them.
And I've tried to you our shareholders too.
Maximize your investment and us and and belief in us and we will push hard. So thank you all very much we will be talking again soon.
Ladies and gentlemen, thank you for participating in today's conference call you may now disconnect.
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