Q2 2022 Wrap Technologies Inc Earnings Call
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Good afternoon, and welcome to the wrap Technologies' second quarter 2022 earnings Conference call. My name is Paul <unk>, and our Vice President of Investor Relations.
Today, our reconstituted management team will discuss.
Fourth quarter performance and provide an update.
Assessments are.
New multiyear.
Okay.
On today's call I'm joined by rapid Chief Executive Officer, you May Kennedy.
President, Kevin Molloy and Rep.
<unk> Chief Financial Officer.
Yes.
I'd like to remind.
Remind you that certain statements made during the call today constitute forward looking statements made pursuant to the Safe Harbor Court lately.
Theories and litigation Act of 1985 atoms.
Such forward looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially.
These risks and uncertainties are described in our earnings press release and in our filings with the FCC. The forward looking statements are made of the date of this call and we do not undertake any obligation to update the forward looking statements I will now turn the call over to TJ Kennedy.
Thank you Paul and good afternoon, everyone I'm going to begin by providing a high level overview of the Q2 activity can be developed.
First yellow meet our new CFO will then discuss our financials before Kevin Mullins of arguments fluids by detailing manage continued strategic roadmap.
Developing a multiyear strategic roadmap target growth profitability and value creation.
And among our top priorities over the past 90 days.
It's important to note that we view 2020 is a transitional year for rail.
One that we are moving to a slightly strong foundation for long term success.
After recently stepping in more new rules governing I haven't invested a great deal of our time to conduct a bottoms up assessment of the company.
We have had exhaustive conversations with team members and customers distributors and partners to understand what was working well.
And what needs to improve.
This process has helped us identify correctable issue.
Or have opportunities to optimizing cost structures.
Roofing margins and accelerating our growth trajectory.
Going forward, our new roadmap is going to guide our execution as we work to address legacy issues.
Your opportunities and accelerate the organization's maturation.
Briefly touching on future results I want to highlight that operating expense was $5 2 million, representing a 32% decrease year over year.
The significant reduction reflects new managements emphasis on implementing effective cost controls and achieving greater operational efficiency.
Revenue was $1 2 million in Q2.
Bucking the expected first half impact of transitioning customers from the polo, Ralph 100 to the bowl of rapid.
The transition had a larger impact on revenue due to the shutdown of the Bolivar up 100 production lines prior to producing the next generation device.
Melting and delays in getting devices to market.
Despite product challenges sales headwinds and lingering COVID-19 restrictions, we were able to achieve a gross margin of 39% in Q2, thanks to cost containment efforts and the early stage transition to the higher margin bowler at 150.
During the quarter. We also continue to build more brand awareness and important areas.
We grew trained law enforcement agencies to more than 1130 in Q2, representing 41% year over year growth.
Certified officer instructors grew to more than 3660 in the quarter up 31% from 'twenty to 'twenty one.
Our brand traction validates that RAF is uniquely positioned to deliver best in class technology and data driven services second one our law enforcement officers across the globe, Jeff safer more effective encounters with minimal support.
New management is acting with urgency.
Capitalizing on this distinct position.
With that said I'd like to turn the call over to Chris. We are very excited to have Chris on the team and look forward to working closely with him as we execute on our strategic roadmap.
Thank you P. J good afternoon, everyone I'm excited to be part of this new management team look forward to helping drive the future growth for us.
Since joining I've had an opportunity to take the full fourth of our business model to provide input on our strategic roadmap I.
I agree with what you did that without the clear opportunities in front of us.
I would now like to discuss our financial results for the second.
During the second quarter of 'twenty to Regeneron.
We generated net revenues of $1 2 million compared to $1 9 million for the prior year period.
This includes approximately 200000 of promotional discounts and incentives during Q2 2022.
Two primarily related to the converting customers for Bolivar.
Gross revenue before such discount for Q3.
$1 4 million.
A couple of product conversion discounts, which are customary in our industry for the client after Q3, and we have Paypal upgrades.
As noted sales this quarter were largely impacted by the slow transition the bubble wrap one Cynthia this is partially due to the time it takes to introduce what is essentially a new device to agencies, especially as international geographies.
It also takes time to work through the approval and training processes before we move agency from our historic Dubai.
First generation.
Additionally, pandemic restrictions and supply chain disruptions have lingered.
This leads us to reiterate that near term bell growth, especially internationally may be lumpy.
Fortunately a silver lining is our pending international work for students in the second quarter are expected to complete in future quarters.
We continue to expect full year 2000 points of revenue will increase due to growth in our domestic bell and international order from our robust pipeline.
Our growth market for the second quarter was 39% compared to 36% in Q2 of 2021, excluding approximately 700000 of onetime expenses related to a wild change and tradition transition to building the bubble wrap 117 in Q2 of 'twenty one.
As we stated before our goal is to achieve 50% gross margins this year.
While this quarter was an improvement over last year, our gross margin. This quarter was impacted by slower sales volume as well as warranty cost and promotional discounts that we anticipate will come down over the next few quarters.
With respect to her muscle costs, we incurred 255000 in the second quarter of 2022.
This reflects the cost of demonstration as well as training product delivered to law enforcement agencies or experience.
The decline from 379000 and promotional costs in the prior year period.
R&D expense for the second quarter of 2022, with $1 5 million as compared to $1 2 million in the prior year period.
This increase in R&D costs was the result of increased headcount and consulting costs related to finalizing enhancements have been.
Colorectal and fitbit and investments to improve our virtual reality software.
Going forward, we have enacted cost containment initiatives to reduce R&D R&D spending.
SG&A expense for the second quarter of 2022 were $3 8 million, representing a $2 8 million reduction from Q1 due to the significant cost containment efforts focused on reducing SG&A expense to be more in line with overall sales.
Share based compensation decreased to 600000 as compared to $2 million in the prior year period.
The stock price in Q2, as well certain issuers that have bought in.
In the prior year period.
We expect SG&A expense for the balance of two point to remain below the prior year due to massive cost containment efforts.
Overall, our net loss of $4 8 million for second quarter.
<unk> per share compared to a net loss of $7 8 million for Q2, 2021, or a <unk> 20 net loss per share.
Our balance sheet remains strong with approximately $28 5 million of pass and short term investments to support our growing needs.
With that I will turn the call over to Kevin to discuss the recent improvements to our go to market strategy.
Thanks, Chris as T. J noted at the start of the call. We have spent the past 90 days and assessing all facets of rabbit model a.
The key focus of our go to market strategy for both the bowler wrap 150 and RAF reality.
We identified several areas of improvement and have already begun making investments.
The Gulf of the bowler wrap 100, fifty's to achieve repeatable and predictable sales across domestic and international markets to do this we began to expand our sales function. While also working to foster stronger relationships with key industry leaders, which we believe will drive robust more predictable results.
With respect to sale, we are focusing on increasing sales of SaaS and driving more aggressive follower to achieve this we are moving new customer leads to a dedicated inside sales function with a regionalized approach we bought their improved how we implement quotas and have developed commission incentives better a better aligned with our overall results.
Additionally, we have initiated weekly pipeline management and sales mid call. This level of structure has created new transparency and accountability throughout our sales operation.
Another key decision in this strategic roadmap with to create a new customer success team, which will be laser focused on retaining and expanding existing customer relationships.
During our assessment, we determined only a marginal percentage of existing partner agencies are operating at full deployment expansion sales in our public safety vertical, especially with our existing law enforcement agencies are more efficient predictable and occur at a faster rate in landing new customers.
Now have a dedicated team and a clear plan and growing our existing customer base, while maintaining focus on experiences we want to be customer obsessed and we believe that this approach will be a driver of sustainable sales growth over the quarters to come.
As previously noted the transition from the bowler at 100 gig bowler F 150 caused disruptions in sales.
Difficulties with the termination of our product line and a slow ramp up to full production created a negative impact on sales this year <unk>.
Momentum with our distribution channel partners with slow through Q2 as the new ball around 150 units were delivered partner sales staff were trained on operation and new branded marketing material collateral provided thankfully our channel partners are now have the proper training their resources to market.
Acceleration to drive faster revenue for us.
The transition from the bowler at $100 with a bowl of wrap $1 50, we experienced multiple supply chain disruptions caused delays in production of the new generation model now that we have identified these initiatives. We are actively working to mitigate any future delays.
We continued to stock long lead parts and have begun to expand the number of suppliers for backup reserve a key component.
We are also focusing on gaining international practice the bowler at 115 and expect to see significant improvements to our international sales revenue in Q3 and Q4.
Lastly, we analyze our training programs as part of our strategic review and consider the immense value each provide here our agency partners.
On our review, we decided to begin charging for training service business.
This decision is consistent with industry standards and had been further validated in discussion with our agency partners, who did not raise concerns about the discharge building. Our go to market strategy is a fundamental component of our strategic roadmap and we are giving focus on maximizing profits for our future sales success.
And now I'll turn it back over to T. J. It is Scott key decisions from our strategic roadmap and deepen.
Thanks, Kevin.
Management has already begun executing on various strategic roadmap initiatives that we believe will support enhanced sales.
Increased product innovation and diversification and long term value creation.
I am confident we have the right plan and the right team in place to drive that plan forward. A comprehensive roadmap is centered on sort of sustainably growing revenue driving stronger margins and supporting long run profitability.
To achieve sustained revenue growth, we made the decision to double down on the bowler up 150 as our key products.
We're focused on driving recurring sales in the U S ramping up sales of the new bowler at 150 internationally and implementing a customer success function to help us expand existing agencies to full patrol why the bowler rapid deployment.
In support of these priorities we have added the inside sales function, Kevin mentioned to improve the number of new qualified leads.
Starting pursuing additional distributor and partner relationships.
To drive stronger margins and support long run profitability, our strategic roadmap also accountable for improved pricing on bullet or up 150 devices and cassette.
As well as monetizing our valuable training services.
We did not initially implement a price increase for the Boulder were up $1 50, which includes significant upgrades and has a higher margin product in the bowl around 100.
This is being adjusted in the immediate term with a plan to continue building incremental increases into our pricing structure for future release.
On the training front, we have proven the important.
Importance of the services and will begin charging accordingly.
We also reviewed rap reality closely and identified that much of the implementation around sales and yet to be captured.
We looked at the various sales and support models and have now made improvements to how we sell rap reality.
<unk> and new wins with just <unk>.
<unk>, our virtual reality offering as a SaaS model going forward.
We are develop a detailed sales plan for rap reality and have put in place key leadership to successfully operate ourselves.
We have made many of the changes referenced above with urgency and purpose we.
We are confident that the new initiatives from our strategic roadmap will become increasingly evident in the quarters to come.
Our.
To action and cost reduction should be evidenced by the 32% reduction in operating expenses achieved in the second quarter referenced earlier.
Right sizing your operating expenses remains a major priority in that strategic roadmap for management and we expect to continue to focus on reducing cash burn in future quarters.
We have made significant improvements to expenses or across employees contractors travel and consultants to ensure our long term success.
And to accelerate our journey to becoming a profitable boots.
This leaner structure will allow us to be nimble.
The reserve our cash on hand to keep us close to our customers and our partners.
In addition to the initiatives I've already touched on I want to highlight some of the other important changes.
We have implemented our mission vision and core values.
We have made the decision to deliver the bowler up $1 50 to the marketplace for the next five to 10 years.
To give certainty to our customers and our distributors.
We will be innovating new products through R&D.
But these will be additive to the bowler were up $1 50, and not replace it to avoid getting into any revenue or longevity issues that occurred with the bullet or up 100 to 150 transition.
We believe the strategic roadmap decisions have created a new long term sustainable business model around it.
It will drive positive change throughout our organization.
So to reiterate the outcome of our assessment for Rep strategic roadmap.
We are a stable business in a market that has demand for non legal.
And noninterest restrained solutions for public safety.
We continue to reduce opex significantly in <unk>.
Our cash burn to continue to improve.
We do not believe we need to raise additional capital to fund ongoing operations for the long term.
We have improved our go to market approach Youre why repeatability.
And we are in a transition year, but expect to drive continued success to breakeven by the end of 2023.
By containing costs, optimizing optimizing pricing and sustaining sales growth, we expect to reduce lawsuit losses and improved cash flow.
We believe we have a viable path to reaching a breakeven position by the end of 2023 and potentially achieving profitability by the end of 2024.
In addition to the specific initial initiatives developed we now have a clearer sense of the white space wrapped bills in the force continue.
So a portion of the less lethal market, where Volvo Rafik cells has little competition. It is also the area of everyday policing that most emergency calls for service take place.
<unk> is now considered by many departments is not elevating to the level of a higher level of use of force and usage has rewarded us force avoidance for prevention.
The prevention of course by using bowler Ralph.
And the leveraging of rap reality to train officers through virtual reality simulation training is the future of law enforced.
Rap reality simulations run the gamut of working through verbal commands and efforts around <unk> escalation through the use of polo, Ralph and handcuffs.
And all the way up to the use of multiple different firearms.
We are proud to be a leader in the market of virtual reality training for law enforcement corrections and societal reintroduced.
This further reinforces that we are uniquely positioned to deliver best in class technologies software and services that can help change and improve the future of law enforcement across the world.
After being here for a few months I can tell you I'm more optimistic and excited about the enormous market opportunity for Ralph.
With our strategic roadmap in place I am determined to lead us through this transformative period and establish a foundation for long term success.
I will now turn the call back over to Paul to facilitate the Q&A.
Thank you P J.
We will now take questions from our three covering analysts we will start with Greg Davis from Northland Capital markets. Please go ahead Greg.
Hey, good afternoon, Chris and Kevin Thanks for taking the questions.
Also kind of thanks for the commentary on the new strategic roadmap.
Outlook.
Kind of follow up on that first.
Mentioned expecting being cash flow breakeven by the end of 'twenty three profitability breakeven by the end of 'twenty four.
I'm wondering I guess, maybe what your estimate of kind of the sales.
Need to achieve those two milestones will be.
Sure I'll go ahead and answer that as well.
Move forward, we believe the end of next year getting to sales that are around $5 million, a quarter or slightly better or going to greatly help us get to that breakeven element, we're keeping our operating expenses.
Very much focused and continuing to reduce operating expenses below that 5 million Mark as we go forward. So we think that's a good place to target. Obviously is our quarterly revenue would grow to $6 7 million and with better margins as we move forward. We believe that that will give us a good annualized.
Future size of the company that will be profitable by the end of 2024 under where we're driving right now no. We're not putting this out of guidance, but it certainly what we're striving for.
Great Yeah fully understood very helpful.
I wanted to congratulate you on the new International sales you guys press released as well.
Your customer base in the Middle East I'm wondering if you could maybe comment on the relative size of that order.
The size of the organization and maybe whether you think there'll be additional sales from that customer.
Yes, great question definitely a six figure sale.
But at the end of the day, it's a very large customer very large agency.
Nationwide and we believe that it has a lot of sales volume to be had in the future. So this was the initial rollout.
One of the things with these large international customers are often very slow to get under contract at the point, we got two hour this customer here to become our 54th international.
Customer out there, but once they are under contract one of the things, we're really going to focus on is expanding them and being able to grow and some of these agencies that are extremely large compared to most U S. Police departments that give us a lot of runway in the future for long term growth.
Great and I guess, just a follow up there.
With that would you recognize that sale all in Q3 or do you expect that kind of being a multi quarter delivery timing are you thinking about that and.
We think about that one being in Q3.
And.
Future sales would be in future quarters as we go forward.
Okay great.
Just last one from me wanted to turn.
Focus towards the domestic policing departments.
Maybe get an understanding of maybe the percentage of departments that have been introduced to the boulder app or at least that you've kind of gotten in front of to date.
I know there is no maybe exact number but just trying to get a sense of maybe your penetration or.
Kind of mind share there.
Yes. So today when you look at the domestic police agencies that we have that are currently using <unk> were deployed in one fashion or another were over 800 agencies. There's about 18000 U S. A police department. So if you look at that it's just under four 5% that we currently have product in.
As far as the ones, we presented two beyond that it probably is two times that number so at the end of the day, we probably presented to 10 or 15%.
Some of these are still buying process, although the U S buying process typically much faster than international it can still be a lengthy process that can go on for 90 or 180 days or more I do think we have a very big addressable market in the U S. Both to continue to expand into but even on top of that what the agencies, where we're in today the 800 plus.
And what are the things we determined in the strategic roadmap is we need to do a more thorough job of working to expand them to full deployment, where all patrol officers in the field are equipped with a bolo wrap device and to do that we think that's a little bit more low hanging fruit to be able to have a broader expansion that happens and moving them from say 20% of.
Apartment or 30% of the department to a full deployment across that department for all officers out in the field.
Okay makes sense. Thanks, guys I appreciate it. Thank you very much Greg will now move on to Allen Klee from the Maxim Group. Please go ahead Alan.
Okay.
Yes, hi.
Could you.
I thought I heard you mentioned something that Youre still trying to get to 50% gross margin by the end of this year.
Are you confident in that and talk to me about kind of what the steps are that are going to get you there.
Good question now and we are confident in that because the better margins that we have on the bowl of rub 150 lead us to believe that we will be 50% by the end of the year, we have been definitely hit on those margins. When it comes to the amount of discounts that we've had related to trade ins for the most part trading certainly.
Or a significant impact on that.
At the end of the day, we do believe once those trade ins work off and I think Q3 will still have a significant number of trade ins, but in Q4, we think that the trade ins will diminish we actually ended our treating discount program at the end of Q2.
We have honored those into Q3 or is that already had proposals in front of them to do some trade in so we know we will have more here in Q3, but we believe the trade ins are going to subside and when they do that higher margin products should be producing 50% plus so that's why we have some competence and that our cost to produce that is less than it is a higher margin product.
Great.
It gives us.
Any commentary on the larger agencies in the U S.
What the status is of Penny.
Penetrating them.
Yes, we've continued to penetrate additional major cities in the U S. The major cities Chiefs Association.
CCA is where.
Are we kind of measure what's a large metro agency here in the U S.
Two notable ones that we added here in the past quarter Fairfax County Police Department was added and then we've had another one added here in Q3. So we continue to add to some of the larger departments that are.
Certainly.
Growing sizes and certainly in the top 75 type police departments in the U S and we'll continue to look at how do we drive those to greater deployment, even from that initial deployment that we have so it's an exciting time for us as these departments continue to come on to.
The bowl of rap family and also in rap reality, where we're able to deploy more of a virtual reality with them as well.
And then maybe as a follow up on that is.
Any update on the LNG TJ trial.
LAPD trial continues and we'll hopefully have more in the not too distant future on that but I will say very positive interactions with LAPD and been supporting them in that trial for the next phase of that that will be coming up so don't have a lot to the announced today, except for us moving forward and should have more in the next month or so.
Great. My last question is in international.
You didn't really show anything material in this current quarter.
Do you feel that the market has opened up in terms of being able to travel to most of the places are met.
Do you think about the timing I mean, you just announced an order today, but just in general the timing of.
International picking up yeah. Good question definitely travel has hurt us on the international side I'll also the bowl around 100 to 150 transition many of those agencies were on bullet wrap 100, and so transitioning to the 150 has also taken some time I do believe here later in Q3 and in Q4, we will see more of those coming to fruition.
Because travel did open up in 2020 to the end of 2021 was difficult, especially in Q4.
APAC just opened up in the past few weeks with New Zealand, Australia, and some others that we're having a lot of travel restrictions. So some of that that just opened up will take longer for us to be able to get face to face and present to them.
So it has not gone as far as the headwinds around Covid related travel. One other thing is we have had sales team members that have been impacted by COVID-19, even in the last two weeks it.
It continues to hit our workforce and we have them staying home at times when that happens and so we do have a small workforce. So when that happens we have some folks off the road, but long term I do believe that the international travel for US has opened back up youre seeing the additional sales into the middle East. That's an area that is quite strong for us as well as EMEA and we'll continue to push that over.
Great. Thank you so much.
Thank you very much Allen our final analyst Jon Hickman from Ladenburg Thalmann. Please go ahead John .
John I think you might be muted can you check your phone.
Can you hear me now.
Go ahead. Thank you.
Okay. So.
Most of my questions have been answered.
I was wondering if you could talk a little bit.
The inside sales force.
Thats been a work though.
Hey, these guys are going to follow up on the needs.
Absolutely.
Yes, im going to have Kevin Mullen is just kind of talk about what we've done. There go ahead, Kevin Sir is what we've done and you are building the inside sales structure, and so really doing outbound as well as inbound really kind of managing the lead process that we marry that.
That group with our regional sales leaders that are out there and so being able to kind of as a laser coming in being able to properly.
Transition those as we run them through the sales funnel and it's something that we're really never had before it was a very more of a more horizontal process and now we'd build scalability into that make it a more vertical and then also working directly with those channel partners out there and so we've done a lot on the channel partner side looking at the distributors looking at metrics how they perform in.
How we can make that process easier smoother and ultimately, allowing us to be able to scale.
Yeah.
So who are they talking to Ed at an agency.
So typically it can vary from agency to agency size the different demographics that are out there those links coming in we have a lot of leads coming in we've never really had a lead problem being able to follow up and being able to drive that lead all the way through to sales.
So it may be from anywhere from you an offer that has an inquiry.
We're getting a lot of inbound leads coming from the different types of events.
Events that we do different types of Webinars outreach that we have coming through our website.
So it will vary.
But again, we do not feel we have a policy.
One example, John this week, if I can add to that is that we had achieved call earlier this week, who.
Definitely was excited to embrace bowler wrap have it be part of their department and it was actually the chief himself, who called he had budget in place and he had seen some local news about another department that had purchased bowler Rapp recently and that was driving him to reach out and get a quote to equip his agency and so is everyone from the cheap on down to an individual officer.
More often than not it's part of the department that is focused on lesson lethal weapons, and specifically, making sure that the right equipment is in the hands of officers in the field.
Okay. My last question.
Okay.
Cartridge sales versus devices.
Can you break that down a little bit or is there any statistics.
Repeat.
Purchases of our switches.
Sure as we look at the carpet sales and device sales and they continue to grow over time.
We recommend typically to a new department that they would deploy 12 cartridges or purchased all cockpits as when they purchased <unk> for training six for until news.
And then of course, those cockroaches have to be replaced over time. So as we look from a sheer number of standpoint carpenters are always going to work, because that's where actually always going to be way out away from the from the device standpoint, as we looked at Q2. It was relatively flat compared compared to Q1, we do anticipate that those sales will continue to drive higher.
<unk> as we go throughout the year, particularly with some of the international stuff and then with all the folks as we're making on the domestic side that that would continue to grow as we move through 2023.
So the revenues.
I mean, I know you gave us.
Occasionally we'll send out a press release with a use case.
And agency.
Somewhere in the states.
Do you have any statistics at all on now.
Meaning.
Use cases, they're getting on a weekly basis.
Anything like that.
One of the things Thats hard as Theres, no mandatory reporting to us or how often is the device used in the field. We do have some departments that do provide body worn video to US often this is delayed for prosecution or for evidenced purposes or other things, sometimes it's a little more recent.
Especially if they're dealing with.
Individual in crisis, and it's not necessarily a criminal what's a protective custody event.
But we also don't get them from all departments, everybody has different rules and regulations around others report some of our agencies are very proactive and some others are not without an electronic notification to know that how often a device is being used we mostly were going off of agency self reporting we.
We do try to share those use cases, just to show the different way, it's being utilized I think you've seen in the past few weeks, we've put out bullet reps that have been done around the torso and the arms are ones that have been done around the legs are ones have been done it and bad weather and good weather.
We tried to share where we can.
We also have different videos, we use in training with the officers out there really just help them understand what the use cases are but we are seeing a broad amount of deployment in one of the things you've noticed in what I discussed today was just we're seeing a pushed for departments to use it earlier in the interaction many of our interactions today bolo wrap actually gets deployed in the first one.
One two or three minutes of the call.
Because they're trying to prevent it from escalating into something more serious and so I think as we see more of these interactions that happened earlier in the interaction before it escalates.
Going to see a more usage in general and B, we're going to see usage that hopefully prevents it from going into any other further use of force down the road. So this is super important for us.
Thanks Shane.
Yes.
Alright, Thank you John and thanks again to each one of you analysts that are iridium research on it and we really appreciate your support with that I will turn the call back over to T. J for his closing comments.
I just wanted to end todays call with my excitement to have the additional management team in place here today, it's great to have Chris on board and joining our team.
And also just that after the first 90 days of building a strategic roadmap. We have spent countless hours listening to our employees our customers our distributors or partners a lot of time with agencies talking about the key factors around the strategic roadmap and getting feedback before we went fine on that and rolled it out across the company in the past week.
And really important as we move forward that we're going to continue to listen to those customers and partners and distributors as well as our team as we go ahead and I am more excited today than I ever have been.
Cause of the opportunity that is sitting in front of us for Rep. If I look back to when Kevin and I came on board in late April to where we are today and the changes that we've already implemented in the first few months.
Really believe this is going to be an exciting time for us this year of 2022 in this transition.
And how much of an impact I think that we'll have over the next four to eight quarters, it's just going to be dramatic.
When we are able to see the results of this driving us forward that the opportunities are there for Rob.
The market in public safety is seeking not only <unk>, but rap reality and having the ability to have both of those tools that focus on preventing escalation. They focus on de escalating situations and avoiding injury does not only help us save lives. It also allows us to save careers and saved.
Careers of those law enforcement officers, who have additional options now on their belt to be able to make such a difference in such an impact in the lives of the citizens. They serve each day, so with that I just want to wrap up that I think the opportunity ahead of us is tremendous.
Super excited to be here and really excited to work with the Rep team as we go forward being able to meet the needs of law enforcement globally, and saving lives and saving careers.
Great.
Right.
Well.
Yeah.
Yes.
Yes.
Okay.
Okay.
Okay.
Okay.
Yes.
Yes.
Yes.
Okay.