Q1 2022 mPhase Technologies Inc Earnings Call
[music].
Greetings and welcome to the <unk> Technologies' earnings Conference call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation.
Anyone should require operator assistance during the conference. Please press star zero on your telephone keypad as a reminder, this conference is being recorded.
Now my pleasure to introduce your host Brian for Novo. Thank you, Brian you may begin.
Good afternoon, everyone and welcome to M Phase Technology's fiscal 2022 first quarter earnings Conference call as a reminder, the fiscal 'twenty to first quarter.
Ended on September 30th 2021 so all figures presented for this period or flip that end date.
Today, we issued our fiscal 2022 Q1 financial results press release, which highlighted a number of financial results for the quarter.
Copy of the press release is available on the Investor Relations section of our website.
Completed financials posted on Edgar.
Before beginning our formal remarks I'd like to remind listeners that today's discussion may contain forward looking statements that reflect management's current views with respect to future events.
Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these forward looking statements.
N phase does not undertake any obligation to update any forward looking statements except as required.
At this point I am pleased to turn the call over to <unk> CEO Hunt you bought in the car. Please go ahead.
Thanks, Brian and thank you for joining the call today on today's call I'm going to cover some of the steps that we have taken to build the first of its kind ecosystem in this space I'm. So excited to introduce our new CFO and Julia irritation, who will briefly cover the quarter's financials are.
000, vacate Gouda Moody will also join us to talk about a new platform that will be launching even though it's been a short time since our last call. We have a lot of updates to cover today, we are positioning the company to become a significant and unique player in the EV space in 2022.
Our strategy is firmly focused on serving Tomorrow's Green E V centric economy, we're building a company that leapfrog. The current thinking in E V to create an ecosystem that serves all of the layers of the emerging E B economy.
As a part of our corporate evolution, we will be changing our corporate name from M face to empower.
The reasons for the change are simple enphase reflected decades of R&D at the company that's centered on telecommunications battery and other physics oriented hardware projects. After I took over in 2019, we switched our focus to software based solutions that utilize primarily off the shelf hardware.
With the goal to create high margin reoccurring revenue streams.
Empower reflects our commitment to build solutions that serve the EV economy, which will transform the way people travel and interact with the retailers.
For those of you who are new to the story empower is an ecosystem built on EV charging stations high speed millimeter wave five G and consumer engagement software supplemented by proprietary travel software layer.
Layered on top of this mobile experience, we're also offering a marketplace with the rewards and ESG compliance programs. We will utilize the same OEM suppliers as the industry leaders for our EV charging and five G hardware, but a majority of our ecosystem software is built in house.
We can best be described as a SaaS E V plus model.
Building services and functions that supplement that charging experience as a result, our goal is to be more profitable.
And to have more revenue streams than any other E V playing in the market today.
The changes in the automotive industry go beyond a change from gas to electric.
It is also a change from solo vehicles to one that functions as a part of an interconnected world of mobile consumers. When you think of it that way your car has simply become your newest and most expensive mobile device. This transformation represents a multitude of challenges for any company connected.
To travel in any form and that is where we come in we're building our empower platform to address the needs of every point of contact connected to EV adoption with services that help automotive companies retailer CPG companies and consumers in pursuit of a greener lifestyle.
The net result is a cohesive customizable ecosystem that can produce multiple revenue streams from a single physical location.
At this stage empower is not a concept, but it's based on tested verifiable technology.
The rollout process just began in the second half of 2021 with rapid major expansion plan for 2020 two.
Last week, we announced the signing of 1400 40 additional locations. In addition to the 1800 and twenty-five locations announced in the past few weeks.
In just one month, we have tied down 3265 locations in Virginia, Illinois and Florida.
We are moving rapidly towards our goal of having 10000 locations in multiple states in the very near future.
With an additional 20000 or more sites by the end of 2022.
In addition to corporate sites, we're working with independent owner, operator sites across all types of businesses and major brands.
This is a very overlooked group that has the most to lose during the E V transition.
So our solution sets are being welcomed with open doors within this subset of store owners.
A majority of whom are looking to participate and EV charging in some fashion.
You say this is a highly motivated prospect list would be an understatement.
Our initial strategy is geared towards maximizing this exposure for us.
First we are implementing pilot programs with selected high profile retailers, particularly in the quick serve restaurant <unk> gas station convenience store and similar travel related businesses.
We will start with recognizable leaders.
Though in reality nearly all major chains, even individual stores or potential future partners in terms of contracts with corporate partners. The sky's the limit for us and we have high confidence that we will be able to showcase empower across the top tier of retailers, particularly in 2020 two.
Two after we have multiple sites up and running.
We believe empower will play a key role in helping to shape the way that consumers shop dine in fuel.
To give you an idea of the potential scale of this platform a 240 twos store test of just one consumer engagement portion of the ecosystem resulted in more than 70000 App downloads, we believe our adoption rate could be significantly higher as we roll out our full stack.
Jack of incentives and features our newly designed empower app for Android and iOS should be live by Thanksgiving. So we are set for the next stage.
The second part of our strategy is to select early partners that can provide proof of concepts across different business categories. So we are working to start programs with gas stations convenience stores hotels sports bars restaurants, and some surprising chain venues that will be announced in the near future.
Each of these business types will give us valuable use cases that will help us sell into these specific categories.
They use case path is very important in order to prove not just the viability of our platform, but also to highlight the customization potential for specific industry groups.
For example, we're currently working on supplemental gamification for a chain client that will layer on customer specific features unique to their locations. We have the team of software engineers in house to complete these kinds of tasks. So our value add in software development differentiates us from many.
Pure EV charging place.
Due to contractual considerations, where we are at in our rollout cycle requires a bit more south than shareholders may like at this early stage.
But the names attached to these projects will be revealed as we get closer to installing new equipment in the ground in the coming months.
It is humbling to see the size and quantity of.
Partners that are engaged with us to make our ecosystem a reality.
One area that we're very excited about is the utility sector, where we're working on partnerships with multiple major regional energy providers.
In fact in recent weeks, we have seen some major EV charging companies add telecommunication and other features to their offering.
Data and connectivity will go hand in hand, as this industry matures. So we intend to be perfectly positioned for that future.
To see industry leaders moved forward with the functionality that we already have built into our platform is a strong validation of our strategy as.
As the world transitions from gasoline power to electric power fuel itself will undergo a major consumer change.
Simply put electricity has no branding power with the exception of source with Green power, such as solar being superior to fossil fuel electricity.
But regardless the day will come when fuel will lose its branding potential meaning the brand will have to come from experience of fueling rather than the fuel itself. We are building our ecosystem to fully embrace the benefits of this change.
At this time I'd like to introduce our new CFO and Julia musician, who was recently appointed Chief Financial Officer.
We are thrilled to have and Julia onboard because of her background is so well suited to the direction our business is headed.
Not only does she have a great background in real estate management, but she also held important roles in constellation one of the largest utilities in the U S. Our experience also includes says he auditing for major corporations at Pwc as well as SEC reporting we're excited to have Angelou had joined the team as we begin.
Our new growth phase now I'll turn the call over to Angela to provide some detail on our financials for fiscal Q1 2022.
Sure before I start I want to thank everyone for the opportunity to be a part of this terrific growth story and now my 18th year in corporate finance.
Lucky enough to hold position that prepared me for a full cross section of corporate functions from complex long range planning to the day to day tasks familiar to all CPA and CFO, having just started as CFO I have that feeling you, sometimes get just before takeoff excitement and anticipation for the journey ahead, so let's get started on Manhattan.
Symbicort.
Because the Companys core business is under a recurring contracts are quarters. During our initial revenue cycle have remained remarkably steady for nine straight quarters now the clear highlight of our fiscal 2022 first quarter growth.
084 percent as we cross the 8 million quarterly revenue threshold for the first time.
Q1 revenue of $8 2 million marked an all time record and should progress over the $7 6 million.
We're in the same quarter last year and this is a welcome start to eyeglass comps.
Importantly, after being static for many quarters. We are finally, beginning to add new rabbit at its core SaaS business a trend we expect to continue in future quarters.
We are lucky to have this capital base business because it gives us the freedom to pursue a greater level of R&D and development and much larger and faster growing segments.
We expect further growth in this base business in subsequent quarters. So this is a trend that will make our base revenue even stronger over time.
We have tremendous scale in our business.
So theres modest revenue increase contributed to a significant 576 basis point increase in gross margin, which reached 31, 6% in Q1 versus the 25, 9% last year.
Our goal is to continue layering on business.
That will eventually generate margins in excess of 60%. So this is a strong step in that direction.
One other key element that is very important in terms of our ability to qualify for future bank lines of credit involves our invoicing.
Effective July one 2021, the company was able to began invoicing through its largest consumers.
Therefore.
Customers do that thoughtfully, thereby making the U S. The primary geographic region.
Change in invoicing.
For a company of our size because lenders prefer a U S domiciled sources of revenue and receivables.
This improves our ability to obtain high quality bank lines of credit and some of our commercial lines that can significantly lower our cost of capital.
One other item to note because we use a channel partner and our core business. This revenue is listed at 100% concentrated in that single customer. However that revenue actually comes from a more diverse set of end user customers.
Beginning in this program 10 quarters ago, we have generated approximately $69 million in revenue.
This has established itself as a consistent revenue stream that will continue to improve.
About 78% of our revenue was derived from subscriptions.
From service and support and about 10% from application development and implementation.
As we layer on new sources of EV revenue customer concentration will gradually dissipate as we expect to have thousands of different paying customers at the same time next year.
Despite some fairly large non cash charges in the quarter.
We still manage to be modestly profitable with net income of approximately 240000.
The company has been profitable and six of the last seven quarters no small feat during the period of major product development.
This was despite some very large changes this quarter tied to business development effort.
Including amortization of debt discount.
Deferred financing cost and original issue discount totaling slightly more than 1 billion, 224% higher than Q1 of the prior fiscal quarter.
One of the advantages of our operation is that we already have a strong team of engineering talent.
Able to assign and complete projects as we need them.
Giving us added leverage without ballooning, our R&D expense.
It'll be hiring additional professional staff that have thus far been prudent and right sizing our organization to match our growth expectation.
As a result, our salary and benefits were actually 58% lower in Q1 totaling just over 217000.
Compared to almost 520000 this same time last year.
While some of this improvement was from special items.
Our current expenses are enabling us to manage our cash well and we bring on new as we bring on new revenue streams.
Another line item in our financials that was significantly higher than last year rising about 300% with our G&A expense, which increased from about 246000 in fiscal 2021 to just over 1 million in the most recent quarter.
The increase was driven by the investments made to support the expected growth from the initiatives previously shared such as growth from our SaaS and Paas offering.
<unk> finished the quarter with $1 8 million in cash and our stockholders equity set a new record at $12 2 million qualify unless we're in NASDAQ uplift without the necessary and necessity for an equity raise.
Overall, our financial condition continues to improve as our prospects for growth accelerate.
Lately enhancing our status with potential partners.
At this time I'd like to turn the call back to onshore.
Thanks, and Julia I would like to spend the last part of today's call discussing some of the projects. We are working on and what we expect to achieve over the next several quarters.
One area that I'm excited about is our fully developed plan to manage our ambitious expansion program.
We have been working on this strategy since last year and during that time, we have assembled a tremendous number of external resources to make our expansion a success.
We now have top tier suppliers engaged to provide our level two and level three equipment, along with third party support to fill in some necessary technology. We have already placed an order for many empower branded level two chargers.
And a number of important pilots that represent chain of thousands of potential locations.
So the empower EV charging rollout phase is underway in a big way.
Depending upon third party schedules, we intend to begin installing as soon as possible as we already have sites selected.
Similarly, we are involved in a couple of important super sites and level III projects that have the necessary equipment and support lined up for when those sites complete the engineering stage as you can imagine engineering takes longer for these sites due to the high energy usage in terms of site.
Acquisition, we are in talks with many retail customers representing around 30000 locations.
And are also exploring pilots with several major quick serve restaurant chains.
Some interested providers in the personal services space Hotel chain gas station grocery stores.
Suffice it to say our ecosystem is resonating at many different levels of mobile commerce.
Along with our own in House technology, We also have aligned with other equipment and third party software application companies to complete our technology requirements.
Every new agreement or contract seems to open new doors for us, but we are lucky in the sense that we.
Are beginning our growth curve at a point when the technology in this space is well developed with the ability to choose from a very competitive landscape of OEM providers, we are able to be nimble and picking suppliers with superior pricing and technology.
So there's some real advantages to being a late bloomer following the creation of an industry.
We spoke last.
Last quarter about how forecasting is somewhat complicated at the moment, because we don't know which sites we will implement our full EV five G engagement stack until we complete site surveys as a rule of thumb under the current model every empower site will carry our engagement software and generate an average or.
Of around $50 and reoccurring revenue.
About half of those sites will include five G and generate an additional $50 per month, we expect about 15% of the locations will qualify for easy installation, representing a more variable rate of revenue.
Each site will have an average of about four ports.
So to model out our revenue expectations over the next four quarters, we expect strong growth in all of our segments beginning with our profitability of our core SaaS business, which we expect to grow at a 10% or better rate on top of its trailing 12 month revenue of $31 3 million.
The rollout of our empower E V centric business segment will add significant revenue in 2020, two and become a source of consistent future growth using a conservative 600 dollar contribution from each site doing bay.
Basic year, one development, we expect our current list of sites to generate $2 3 million in annual recurring revenue a subset of these sites could also generate an additional revenue as we add new features to our platform or upgrade the empower offering at suitable locations.
Using the same metrics our pipeline of higher profitability site not yet announce represent.
And an additional 18 million in annual empower EV revenue counting potential supercharger sites.
Currently in planning stage, we model R. E V pipeline at more than 26 million in annual revenue.
Adding together all sources, including growth of our existing SaaS business. We are modeling a pipeline of about 30 million and targeted reoccurring annual sales roughly doubled our current revenue.
It should be noted that these figures do not include any contribution from five G.
Where we still have several several different paths in development in.
In terms of.
The calendar, we expect to begin rolling out our engagement software by the end of 2021.
Our empower charging stations by Q1, 2022 R. E V plus five G. By Q3, 2022 R. E V plus enhanced platform by Q3 2022 with additional features.
And our supercharger sites in the second half of 2022.
With tens of thousands of sites in our pipeline tracking our progress will be pretty straightforward in the future quarters when modeling against these reoccurring metrics.
First revenue from each empower site is highly predictable.
As majority of our revenue streams are expected to continue to be reoccurring in nature as we build out our ecosystem.
I'm also very excited about our new marketplace platform that we're about to launch to talk more about this I would like to introduce our chief operating officer, Venkat Cuda Moody to provide some detail on this exciting market place.
Thanks, Andrew.
I want to spend a few minutes unveiling a brand new blockchain based.
Marketplace.
We think will revolutionize the way green consumers are.
Incentivized for practicing eco friendly habits and their daily lives.
So I'm excited to give everyone an early look at the empower Coca.
Which is a green token backed by the proven blockchain technology.
We think.
This will be a great addition.
Empower ecosystem.
We approach this space.
With a goal to resolve multiple problems in the eco incentive space.
Crushed.
We look at ways for green consumers to participate in helping the world move more quickly.
It wasn't easy centric future.
Regardless of current EV ownership.
Many individuals want to have a bigger role in this moment.
We're giving them a digital path that is easily managed via any mobile device.
At the same time.
We looked at how to integrate this noble pursuit.
The corporate need for ESG programs.
And new ways to offset a company's carbon footprint.
Last but not the least.
We also considered the needs of green product manufacturers.
In reaching the target market.
Our solution will.
Should design and empower green token based marketplace.
Into an ecosystem.
That can bring all of these groups together and promote positive change that benefits different participants.
And the way that best suits their own needs.
We are uniquely positioned to create this program.
Yes.
We expect to have a very large footprint of tens of thousands of empower retailers in place relatively quickly over the next year.
Okay.
Within our ecosystem businesses can offset their carbon footprint.
By installing EV charging.
Or <unk>.
Buying tokens in the market.
Promote green practices.
Markets.
I'm, sorry makers of truly green products.
Can use our ecosystem to promote their products and green consumers can get a little bit greener.
Symbolic in the literal way.
Earning tokens that can be redeemed for other products and services.
Under our program.
We envision the creation of a green token economy.
Users can redeem these tokens at empower sites or incentives such as recharging.
That are specific to their needs.
We are excited by the idea that this type of token can help companies meet their ESG goals.
Which is more difficult.
And you might imagine for many firms.
Particularly those that are struggling to find onsite ways to reduce their carbon footprint.
We already have companies that have agreed to be on a token marketplace.
And locations that want to participate in our ecosystem.
So the supply and demand characteristics of this program is already in place.
Built on top of an eco friendly standards based distributed ledger platform.
We also intend to inter operate between standards based.
Eco friendly distributors your platforms.
Such as Savannah, polygon and substrate.
Or all the green token.
This is not just a concept at this stage as we have the platform built and will be ready to launch tokens soon.
Blockchain is a natural choice for the platform.
For a number of reasons starting with transparency.
Like the farm to table supply chain concept introduced by Walmart.
Our solution can.
Can extend.
Ranked the eco friendly products sold in our marketplace. So we have a great deal of functionality that we can add after lunch.
Blockchain also gives us the twin attributes of audit ability.
As companies participating in the ESG are required to be audited and blockchain is tamper proof.
And in Mutability key feature where data cannot be altered.
For those familiar with this space you might be wondering why this kind of cooking versus utility clients.
While utility coins are more appropriate for the type of the use case that we're talking about they cannot give us everything we need for our specific program.
[noise] utility tokens I don't have no value outside the closed ecosystem well they have a static value.
This is due to the fact that the supply and demand are both control and finite.
In our ecosystem, we have an EV charging platform to not only attract the green conscious customer.
But also to drive traffic into stores, whereas in normally might not shop. In addition.
Marketplace provides us the ability to drive supply and demand.
Creating intrinsic value for the token.
Which will be reflected in price changes overtime.
In that sense. This is not a company loyalty program.
The Green loyalty program.
We believe that this concept will generate considerable interest.
And give us some exciting inroads into collaborations that would not otherwise be possible.
Our revenue proposition could be very large.
E Tailers.
Goodbye credits or tokens and.
And uses as part of their own incentive programs.
So for example in new purchaser of an EV vehicles.
Could be rewarded with a wallet of empower tokens.
That could be spent at our member retailers simply based on the switch away from a gasoline powered vehicles.
We have a long list of potential collaborators.
And collaborations in mind.
This is just one of several programs that we have under development.
As part of our strategy.
The company identified as a leader in Green evolution in Commerce and travel our team is pretty simple.
<unk> agreement way of life easier.
Pierre and more productive.
This is really the starting point.
All our projects and.
And something we believe will distinguish our product offerings as our empower ecosystem.
Pence.
Now I'd like to turn the call over back to onshore.
These remarks.
Thank you Venkat.
How exciting does the future look our pipeline is full our new revenue streams have already begun and we see acceleration across all parts of our business. It took many months to get there.
But we are finally beginning.
What we think will be a significant accelerating growth phase and one of the strongest sectors in tech at this time I would like to open the call up for questions.
Thank you we will now be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate that your line is in the question queue. You May Press Star two if you would like to remove your question from the queue for participants using speaker equipment it may be necessary.
Sorry to pick up your handset before pressing the star keys, one moment, please while we poll for questions.
Okay.
Yeah.
Okay.
Thank you. Our first question comes from Chris Jarratt with Dunlap equity. Please proceed with your question.
Got you.
Questions here.
It was great to see.
Faisel core SaaS business to get back to growth and it sounds like you've got.
A lot more ahead I also noticed.
Nice uptick in gross margins for the quarter should we expect that gross margin improvement to continue or is it going to level out here.
Hi, Chris So great Great question, no actually we're getting a lot of interest on our existing platform and in fact, we're actually expanding some of that offering. So we can actually expect not only this to continue but actually continue to see an increase of maybe as much as 10%.
Per year in terms of growth in our existing business.
And the commensurate margin improvement on the gross margin.
Yeah, No that's going to continue I think the way our our platform kind of works is we have a fixed cost so as our revenue increases our margin increases kind of reflected as you saw that so our goal is to continue to be a SaaS company and a target of about 60% in gross margin.
So you'll start seeing those margins increased to two.
To those levels.
Okay, that's great.
Got it and then how do you see.
When is the first app gonna be installed as well as the first charging station.
So yes, so we actually have a you know historically our apps were inside the retail are the customers apps right. We're kind of built in integrated and there are.
Our own apps, our empower branded apps are.
It should be you know before Thanksgiving there'll be available for download I think iOS is already a I'm sorry, you know Android is already available iOS is taking a little bit longer but before Thanksgiving, we shouldn't have that available.
And we're we're just rolling out as we speak and in all of these locations. So I would.
I would say the first you know call. It the next quarter, we will start seeing revenue from from our own App start start as early as next quarter and I would say probably the following quarter you will start seeing.
<unk> level, two chargers installed and we'll start seeing revenue from that and then.
So towards the latter half of a point of 2022.
Probably the level III charges will be in place we already have projects in interest in that it just takes a permitting and everything else and also theres a backorder on some of their equipment. So all of that process takes a little bit a little bit longer on the level threes.
Fantastic and I, just want make sure I understand something so you've got 3000, yes.
Locations already signed you mentioned in the press release, something like 27000 of pipeline from a revenue standpoint.
Base bare minimum one of those sites is going to generate is $50 and app revenue a month, which because it's software I should be very high revenue and then from there some will get the.
<unk>, another $50, probably not as high revenue, but still high revenue and then charging on top of that so at a bare minimum we're talking about $50 a month of very high margin software revenue for each site plus whatever else you can buy on top of that.
That's correct, yeah, so that's going to be sort of a.
Bare minimum and we expect as I mentioned in my.
Prepared remarks that we expect.
A large chunk of those to about 15% to get EV charging on those sites as kind of what we're estimating and each each one of those sites to have at least four ports I mean, some are looking at as many as 18 ports, but we're just kind of averaging about four ports for per location.
And how many did you say you thought would get the <unk>.
Okay.
Yeah, I mean, we're thinking it's going to be as high as 50% just about everyone. We talk to is actually very interested there might be even higher than that but we were we're sort of estimating about 50% and and you know again this would be building a a sort of C. B R. S network that will be building and because we are the way we're rolling out our strategy in terms of.
The density of a particular location, we can actually create a connective private C. B R. S network and be able to offer services outside that retail location, which again, we'll we'll make one our app that much more stickier, where people would not want to delete or app off their phones, but more importantly, we can offer services to other.
You know other revenue streams that we can generate by monetizing that network.
Okay.
Is this something Youre offered USR I understand they're probably the highest need desks.
Desperate for some good things right now to help them in their transition, but is this kind of focus on CSR or do you think you can go horizontally across all retail.
Yeah, No no we're actually focused across all retail I think <unk> was just kind of the low hanging fruit, but we're actually in talks with a full full service restaurants hotels as I said gas station convenience store. We're also in talks with grocery stores big box grocery stores as well as other retail locations from you know that.
You know things that you typically won't think of but.
Yeah. We're really excited we think that this opportunity is tremendous I think you know sort of total market here is in the billions of dollars right just in charging as things are moving so so we're excited to be able to capture a good portion of that is kind of what we're hoping.
Okay. That's great. Thank you I appreciate the update and good luck with everything.
Hey.
<unk>.
Thank you. Our next question is from Graham price with Raymond James. Please proceed with your question.
Hey, good afternoon, and thank you for taking my questions. The.
The first one I had with regards to the Virginia sites that you announced a couple of days ago could you talk about the breakdown, perhaps between convenience stores and gas stations and restaurants that you mentioned.
Yeah on those locations.
Locations are I don't know how.
I have the exact breakdown in front of me right now, but it is a predominantly a broken up and in terms of convenience stores that I would say a majority of those are convenience stores and gas stations I would say probably a little higher on the on the convenience store side and Theres, some restaurant chains and hotels as well.
Got it understood and when do you think about I guess the recurring revenue profile.
For each of those types of sites, how how do you think about that.
Yes, so each site is actually at that minimum looking at her engagement platform and that's something that there are you know very interested and we're also kind of launching this says make it kind of brought on this new marketplace, which essentially allows.
You know us to not only connect the customer with the with the retail location, but also incorporate new brands as well and so that's something that we're.
We're very excited about and they'll bring in sort of additional revenue our revenue streams as as that as that continues but at a minimum you know is that engagement platform. Just about everyone. We had spoken to is interested in five G connectivity as well.
A lot of that has to do with you know theres a lot of site site work that needs to get done to make that happen. So so we're still estimating maybe about 50% is kind of tobacco that envelope calculation for us.
Will qualify for that but that would be an additional reoccurring revenue stream that will be getting from there.
Got it understood and then.
My follow up just wanted to get your thoughts maybe that's a little longer term, but your thoughts around international expansion.
How that might work.
Yeah. So we do get a lot of interest in especially out of Europe, and and Asia, especially in India. So that's something that we're keeping an eye on it is not something where we're looking to do enter immediately just because we want to get our our base, which is the U S down, but we do see a lot of interest there.
And especially as I mentioned out of Europe and in India.
Just a lot of demand therefore for EV charging and.
Even like in China, we had conversations with a few companies there and who reached out to us because they they'd like the platform right. They like what we're doing here, but again, that's not a that's not a market we want to.
Enter today, but it is something we're keeping an eye on.
Understood. Thank you very much.
Thank you.
Thank you. Our next question will come from coal Wilson private Investor. Please proceed with your question.
Okay. Thank you.
So on the so what we expect it should be roughly the first quarter is mainly just going to be their consumer engagement.
Revenue was that.
Pretty correct on that as far as.
Yeah, I call, yes, so next quarter Youre talking about but our Q2.
Our next year.
Yeah, Yeah, yeah. So so next quarter Youll start seeing not only our existing reoccurring revenue that we but also in addition to that Youll start seeing revenue around or consumer engagement platform as we roll that out.
By next quarter in the following quarter Youll start seeing more EV EV revenue from charging.
Is the.
The 3000 locations that we roughly have right now is that a conservative number to what we can expect growth per month or.
Is that a high number.
Low number and average yeah no no I think we should be at least for for some time.
Well, we'll be growing at a pretty we have a huge pipeline has as I mentioned, we're looking we're tired of getting at about a 30000 locations and.
You know our our sort of first goal is 10000, which I expect are you know sometime.
I would say.
In the near term and then our by end of 2022. My goal is at least to get to 20000 locations.
Yeah.
Nice.
Five five G municipal contracts are those still in progress.
Yes, there are.
They're very much in progress and I think what's unique about the way we're doing it is.
<unk> is because we already have locations, which is which is always tough for someone to come in and because if theyre coming in from the five G side.
They would have to either signed leases or use government facilities to set up the private networks because we already have this in place we almost can start offering services to two governments are fairly quickly. So that's something we're working we're working on as well.
But as far as are our current.
Forecast, we haven't really.
<unk> accounted for that revenue at this point.
I understand understand.
Yeah, I guess that kind of stuff too.
I guess, let's see we're on the <unk>.
Today's press release, I see that you kind.
Kind of touched down on.
And uplift I know, that's probably a lot of concern with people as far as.
How close to the term do you think you might be looking at that and obviously, what our what the plans are to possibly get.
Some more brand awareness out there for us.
Yeah, no absolutely I think that's something we're we're definitely.
Mindful of you know, we feel that there's a lot of.
You know a lot of wins that we still have a that we can announce and are at the same time you know we qualify for an uplift, but we want to do it strategically and we want to make sure. It makes sense for all shareholders and so that's something where we're kind of looking at we're hoping to get you know analysts coverage prior to that and so that way.
You know the story can be.
<unk> heard a lot a lot more and hopefully are our market cap reflects the true value of the company, which are currently it does not.
Absolutely Okay I appreciate it Sir thank you very much. Thank you.
Thank you got it all the time, we have allotted for questions today I would like to turn the call back over to onshore bottom Navarre for any closing remarks.
Well, thank everyone for joining today, we covered a quite a few of topics today, but I hope you leave today's call with a better understanding of how carefully we have planned for the EV centric future there.
That is inevitable. We are very excited about the work that we have done to prepare for this future.
And look forward to showcasing those efforts over the next few quarters.
You again for taking the time to listen to the empower story today.
This concludes today's conference you may disconnect your lines at this time. Thank you for your participation.
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