SuperCom Ltd. 2022 Earnings Call
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I'd now like to turn the call over to Stephanie Prince S. P. G C Advisory Stephanie S T.
Thank you Jenny and thank you to everyone joining us with.
With me on the call today, or Dan Trabelsi Super Com's, President and Chief Executive Officer.
I'd like to remind you that during this call Supercomm management may be making forward looking statements, including statements that address supercomm expectations for future performance or operational results forward looking statements involve risks uncertainties and other factors that may cause super com's actual results.
To differ materially from those statements for information about these risks uncertainties and factors. Please refer to the risk factors.
Grabbed and Supercomm. Most recently filed periodic reports on form 20-F, and form 6K, and soup becomes press release that accompanies this call, particularly the cautionary statements.
Today's conference call also include EBITDA, a non-GAAP financial measure that Supercomm believes can be useful in evaluating its performance.
Should not consider this additional information in isolation or as a substitute for results prepared in accordance with GAAP for a reconciliation of this non-GAAP financial measure to net loss of comparable GAAP financial measure. Please see the reconciliation table located in Supercomm earnings press release that accompanies.
That's cool.
Reconciliations for other non-GAAP financial measures and comparable GAAP financial measures are available there as well.
The content of this call contains time sensitive information that is accurate only as of today April 20th 2023, except as required by law Supercomm disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur after this.
Paul.
It is now my pleasure to turn the call over to <unk>, President and CEO or a dance you beltsy or Dan.
Okay.
Just checking out I know you are you on mute.
Okay.
Yes, yes, thank you started with.
Thank you Stephanie and good morning, everyone and thank you for joining us today.
Earlier. This morning, we issued a press release with our financial results for the fourth quarter and year ended 2022, you can find a copy of the Investor Relations section of website at <unk> Com Dot com.
Today I'll start my comments with a brief update on our recent business highlights and strategy and Q4 and 2020 results followed by Q&A session.
She can come out a great year in 2020 annual revenues increased by 44% to $17 $7 million and the company reached a positive EBITDA in both the third and fourth quarters.
There's an investment in our leading edge technology.
We also improved our operating cash flow significantly from an operating cash use.
Nice one 4 million and 24, one to $4 7 million in 2022 roughly cost.
Reflecting positive cash flow generation from new and old project.
During the past year, we won several important contracts in the U S and Europe .
$40 million in total.
We're excited with the opportunities we see ahead I'll go more into details in a few moments.
So it was nearly supergirl just forgot to mention that has revolutionized the public safety sector worldwide to proprietary electronic monitoring technology data intelligence complementary services over the past 34 years since founding back to date.
Being a trusted partner doesn't do Goldman worldwide, providing.
I'm, writing them cutting edge electronic and digital security solutions.
Our strategy.
Apologies, because all black box solutions expand our presence and deliver outstanding services.
That's why we executed that strategy by focusing on the following two factors.
Our proprietary electronic monitoring technology scores.
In competitive Rfps and supports various programs such as house arrest G.
G P S monitoring rehabilitation services domestic violence prevention and more.
Triple combos won over 50, new multiyear governmental projects in 2018, just in the past you along we announced project win valued at over $40 million.
Our strong reputation and recognition as a premium provider of electronic monitoring technology and services also contributes to our win rates.
She customer win project deployment and further strengthen our application could better position.
Third our strategic focus and attention to our Iot tracking business in developed countries, where the opportunity is the greatest.
So Jonathan monitoring market is estimated to reach roughly $2 $1 billion by 2026 up from $1 2 billion in 2021.
U S and Europe constitute about 95 or seven markets in Europe , there's definitely been an increase in RFP activity with over $200 million projects bid opportunities in the past 18 months.
Although these exceptional opportunities that resulted in a growing pipeline of business that has an average yield.
High recurring revenue rate.
After installation.
Yeah.
And 'twenty two sides of it to just invest in R&D to ensure our products remain the most competitive.
And the margin can judge you introduce new features technology platforms, such as <unk>.
Results in these countries finalize development of the appointment of two new products, one that just called pure project lifesaving domestic violence washroom solution.
This groundbreaking product has undergone rigorous testing what's already been successfully implemented multiple projects, including the 33 million dollar projects.
Yeah.
To the extent of the company's addressable market.
Another new product launches here.
The pure one.
It's an all one ankle bracelet monitoring solution that integrates a comprehensive monitoring capabilities into a single device with lightweight design longer battery life high precision and future proof features but drill one offers a more efficient and effective ballpark.
So we should this part is also expensive broker market reach the market in favor of one piece of it that's as many regions in the U S. We've been very pleased with its early reception and traction of our newest products and expect them to facilitate the rapid expansion of supermarket also in the U S market.
What are you trying to not only maintain our technological advantage, but also invested in enhancing.
Our operational infrastructure and expanding our workforce. Furthermore, we bolstered the company's global sales efforts are recruiting new sales team members with industry expertise to driver.
<unk> from passive and active outreach strategy throughout the year, we announced many new project wins in the U S and Europe Supercars me that you're actually displacing incumbent vendors in over 65% win rate in European competitive RFP for pellets have won so many new contracts with short period.
Especially during economic uncertainty and market volatility due to the looming threat of recession and unstable geopolitics or business.
Fishing resistant in nature, and that's a possibility of a potential recession increases the multiple tailwind to support our growth.
Many of you have heard.
You described before he's got one charges include high recidivism rates, roughly 75% or more prison overcrowding of over 100%.
Incarceration costs in 2020, the U S alone spent over $80 billion to do approximately two 2 billion.
3 million people incarcerated, which equate to nearly 1% of the entire U S population.
For those reasons among others.
Growing global trend up government attorney.
Innovative solutions and alternatives to incarceration to ensure public safety and our pure security technology solution.
Dino address those trends.
Could you provide an effective way for institutions to enforce home confinement, while easing prison overcrowding significantly lower in cost for example, the total daily calls for monitoring and offender at home.
The assignment or GPS monitoring is approximately 10 to $35 a day compared to the much higher cost of 100 to $140 a day at a correctional facility.
Most importantly home confinement has been shown to reduce recidivism highlighting its effectiveness in helping offenders improve their lives and communities.
Top of these growth drivers, we have witnessed a surge in adoption of fixed and protection solutions.
Life, which aligns perfectly with our strategic plan and the launch of a new product to a project.
[noise] awarded through competitive RFP process.
Now it doesn't exist in over 10 countries across Europe , and we look forward to increasing that number and to use that.
Revenue from European countries increased by 230% to $96 million from $2 $9 million in 2021.
<unk> accounted for roughly 54% core sales mix in 2022.
We want the largest industry award of the year for National traffic monitoring project in Romania guided $33 million inclusive of 15000 monitored offenders per month, our domestic violence solution. The pupils that is expected to enhance the security of many families as part of this product project, what the 15000 per month.
Over six years.
So we announced we had received a $7 $1 million follow on order second order under the contract, which solves initial order of over $1 billion back in 2022.
We've also launched a domestic violence and you should not just in Europe and are planning to launch in the U S and Israel, there's potential for new domestic violence project as well as the government is trying to pass a law requiring domestic violence offenders to be monitored with pathologists to ours.
Finland was on the most recent project losses of $3 $6 million National traffic monitoring project was awarded by the National government to the potency of a pass through securities driving monitoring suite.
Earlier. This year, we also won contracts in Sweden, and Croatia to become wasn't what equations first national electronic monitoring projects.
We have already launched.
We secured a new contract for students juvenile national trying to commodity and project a third and final remaining national young couched in Sweden.
Which are now all held by Super Bowl.
We've also been working to increase our business in the U S. We're proud to have made.
Good progress towards our goals with multiple projects in California, Idaho, Texas.
For example in.
In the fourth quarter leaders and community alternatives or LCA, our wholly owned subsidiary based in California, One new project contracts valued at approximately four point to $5 billion.
Within Northern California County to provide adult will be actually services.
He has provided services in this kind of it for many years, including adult day reporting services and I'll try and monitor the new products to expand the scope of the contracted rent.
Servers have to include Jailbait site.
Community based sites. It also focuses on reentry services, including case management substance abuse education job preparedness.
Criminogenic risk reduction.
This program is already launched in Q1 of 2023.
A recent win in Idaho, a visit to a third one third new customer in Idaho, and that's in a year, which adds to organically grow our customer base.
It's also clearly illustrates how rapidly our technology could spread to adjacent new customers. So it becomes now does business in multiple U S States with U S revenue now accounting for 39% of our sales mix in 2022.
Also in the fourth quarter Supercomm.
Data protection and security a subsidiary called Facetime received two orders totaling approximately $870000.
The first valued at $2 70.
From a government security agency to renew and expand.
The security protection programs the other.
$600000 and its for license fees for additional seat expansion and recurring maintenance fees from 50000 feet.
Is it high margin products have been around for years.
Promising outlook had.
<unk> had continued rapid advancement of digital technology has led to an alarming rise in cyber security threats. They can cyber security solutions more crucial than ever before as a result favorites products are in high demand as the offer effective physician protection against cyber attacks.
Our new strategic sales team and new ones have been the first steps in executing the company's U S market expansion strategy.
We've already driven increased activity with existing customers and numerous new demos and evaluations with new potential ones.
And as we talked about before I believe there is also an opportunity to enhance our U S growth through strategic acquisitions of local electronic monitoring service providers with a strong reputation in our customer base and their respective local markets. We constantly monitor the market for potential acquisitions that could generate significant value by immediately expanding market presence and providing vertical integration.
Our acquisition of LCA in 2016.
$3 million is a great example.
Acquired at less than one times revenues.
Very strategic synergies on top line and from a cost effective successful tradition is that too.
Over $30 million in new projects.
In California alone since that position.
I'll now turn it over to the financials.
Previous conference call I mentioned that we were anticipating contribution to our financial results in Q4.
As we discussed I'm delighted to share that our revenue has recorded a remarkable year over year growth of 69%.
Amounting to $5 $1 million in the fourth quarter. Moreover, our annual revenue growth increased by 44% to $17 $7 million in 2022, with our Iot Division being the primary growth engine to put things into perspective, while the global electronic monitoring market growth was approximately 10% in 2022 Super Comms.
Iot revenues achieved a staggering 76% growth this.
Let's go through the Testament to the fact that the market for our solutions over the alternatives.
Furthermore, we are proud to announce our return to positive EBITDA in the third and fourth quarter.
The EBITDA of $400000.
Third quarter and $770000 in the fourth quarter of 2022.
And positive EBITDA in 2022 altogether, which is all different targeted spending and high year over year increases in revenue.
Revenue from developed countries could you use increase reflect them.
The completion of our transition plan to transform our business from an unstable emerging countries to developed countries. As a reminder, the legacy business comprised of onetime project revenues in Africa, and South America.
Sometimes hard Collectability at times, which is in sharp contrast to IV chocolate business in developed countries will generate higher recurring revenue I got stability and high predictability with multiyear government contracts.
Gross profit increased by 3% to $6 $4 million compared to $6 2 billion in the year before basically thats. Good current with increases in cost of goods, which is all good for supporting the launch phase as I mentioned new projects typically.
The initial stages of projects tend to incur higher expenses, although more advantages yield higher gross margins as a result, our gross profit fluctuate depending on the composition of our project portfolio and the distribution of project. Upon pig stuffs short term decrease in gross profit accompanied by an increase in income.
Scientists creation of long term growth and gross profit.
This of course with Puget upon ever evolving competition of a full project portfolio.
Excluding purchase for the year's ended.
At December 31, 2022, and 'twenty you aren't amounted to 524940 $6000, respectively. It's worth noting the inventory from previous years was helpful. In our ER visits in 2022 as well.
We increased our annual research and development expected by $650000 or we continue to develop and launch new products and improve existing ones keeping us at the edge of innovation.
And technology leadership in our space.
Our annual sales and marketing expenses increased by roughly $1 billion to support the company's new proactive growth strategy and general administrative expenses increased $1 million and continued to expand our management and finance teams.
Our cash cash equivalents and restricted cash balance at the end of 2022 was $4 5 million compared to $4 $6 million at the end of 'twenty, one our cash position to stable credit facilities in place and reduce our cash needs gosh, we continue to win and execute larger projects such as we saw in 2022 or a cashews.
Went down from $9 $4 million, roughly four seven when compared to the previous year.
In addition, the company had one time expenses of roughly $1 $1 million driven mainly by reorganization expenses pertaining to the legacy business and allowance of doubtful debt.
The company had an operating loss of $6 million versus an operating loss of $6 $7.
The previous year.
In closing we're excited about the growth we're experiencing.
And about the growing demand for our products after five years in which we transition from our legacy business. The Iot business. We finally see the shift to gross revenue for the second year in a row I believe that we're well positioned for continued growth by capitalizing on the many opportunities before us.
These are being driven by multiple factors, including a strong presence and reputation in the U S and European markets, the countercyclical nature of electronic monitoring industry.
Going public policy shift to monitoring the southern conservation.
<unk> returned to post Covid return levels of this facility, we anticipate sustained growth by further expanding our market share in the U S. In Europe , our commitment to preserving our technological advantage Airbus Foundation remains steadfast.
Continuing to invest in these areas.
That I will turn the call over to the operator to open for questions.
Great.
Thank you very much ladies and gentlemen, if you wish to ask a question on today's call you'll need to press Star then number one on you'll find keypad. If you are using a speakerphone. Please pick up your handset before entering a request and speaking on the call. If your question has been answered and you wished with Julian request you might do you say by pressing the <unk>.
One moment, while we poll for questions.
Thank you. Your first question is coming from Matthew Kelley.
Maxim Great Matthew your line is life.
Alright, great. Thanks for taking my question and.
Congrats on a really strong close to the year and the growth we're seeing.
I'd like to touch on.
Sales and marketing, particularly I know you were up year over year for the full year, but if we kind of look at the sequential pattern.
Down to sort of the run.
Right you were at at the end of 'twenty, one so I'm just curious if you.
Why are we seeing that decline in the back half in sales and marketing spending and.
Does that tell us anything about.
Waning investment in the initiatives in the U S or.
Or is that still full steam ahead.
Okay.
Great question, Let me just open up some of them are not.
From last year.
Because you were talking about comparison to.
First quarters of 2021.
Yeah, or even if you look sort of sequentially from Q3, 'twenty two to Q4, 'twenty two or from <unk>.
Q2, 'twenty to Q4, 'twenty two youll see that.
Sort of stepped down over a couple of quarters.
Okay. So if room some.
Okay. Okay.
Okay.
From.
Uh huh.
In front of me just one moment please.
Got it.
Yes, okay. So.
It sounds the marketing does depend on the projects that we are.
We're trying to secure.
Not just the fixed cost and all that.
You might think of a normal sales into the commissions also.
So on a new project is one you typically have a higher commission payments.
Our sales teams and also if you have any partnerships or.
There are other other companies are working with US you've also expensed throughout that.
That being said.
Our sales and marketing expenses are on average relatively stable, we didn't hire new sales people. So theres extent expansion of our sales and marketing expenses compared to let's say the beginning of 2021 or 2020, and we continue to expect to invest in sales and marketing in the U S that being said, we're also going to look for opportunities to optimize our.
Ross.
Without consideration for.
Our goal of improved profitability and a lower cashews.
You shouldn't trend that will exemplify it already from.
From 2021, 2022 to use less operating cash and we're keeping that in mind as we continue to grow our.
Expansion throughout the world.
Got it thanks, and then I guess the follow up question on that last point.
Very strong performance on the EBITDA line in the second half of 'twenty two and.
Very strong revenue performance throughout the year.
I know you're not guiding to it but.
Is it reasonable for us to expect.
EBITDA or is it a target to be EBITDA positive in 2023.
Okay.
So we want to EBIT positive.
As you know as well.
$100000 in 770 in Q3 and Q4.
Oh.
We tried to we tried to maintain the EBIT positive activity.
Activity, even though we are way those fluctuations because of the project nature of our business so and.
Q3 and Q4.
Launch the project and Theres a lot of revenue associated with it we announced another order.
$7 billion earlier this year in 2023 and that can create some fluctuations in revenues how would fall between the quarters.
And accordingly that can create the fluctuation to EBITDA, so while I'm the EBITDA could fluctuate between the quarters. When you look on an annual basis over a long term basis, we try to stay above us.
<unk> you had a positive and as we continue to maintain more steady revenues and revenue growth.
Also look for additional properties to optimize our expenses.
The natural.
Operating leverage baked in because you have the same fixed expenses for customer support and inventory management and project deployment, whether it's a $30 million project or a $2 million project. That's a project sizes grow, but we're seeing improvements.
And growth in <unk> and a potential contribution for each unit deployed it's not yet reflected in the gross margins the financials because we're in early stages of Romania.
Gross margins are lower because there's a lot of installation and deployment of it.
But the projects will continue and that will be less of.
The prevailing revenue mix and that will allow for increases.
Gross margin for that project specifically.
Based on how other projects will fall into the mix, we will see how the gross margin.
<unk> altogether.
<unk>.
As well as the EBITDA.
Which we hope to maintain that.
Positive, even though it's not up to the guidance because it was still more guided by our long term goals two to expand our market presence and.
Get closer and closer to metering positions as.
The player in the market.
Alright, Thanks, I'll jump back in the queue.
Thank you very much just as a reminder, if you do have any remaining questions. Please press star one on your phone keypad now.
Okay. We have another question in from Muskegon, Inc.
Matthew Your line is life.
Okay. Thanks.
I wanted to ask about the.
The competitive environment, particularly in Europe , where I know you've talked about some large opportunities in the pipeline.
Has it intensified in recent quarters do you feel like you still have an edge to maintain the sorts of win rates you've seen in the last couple of years.
Great question, and what we've been seeing over the past few years, we simply Wouldnt, Romania, which we didn't even expect because when the new projects for them.
Interested in your project for Croatia.
So besides the existing.
Projects that are that are running that we did we tried to win by displacing a competitor.
New ones keep horizon, and they reach out to us usually through through local.
And we're still considered a yep.
Play with Great technology, and a very strong momentum in the market as mentioned, our Iot group, our Iot revenues grew by 70, 576% year over year, whereas the market grew by 10%.
So we're still we started the patient is still very strong enough technology still scored very highly.
We didn't even though the competition does.
Sometimes investing in R&D and developing new products, we haven't seen much of a threat from a technology perspective or technology perspective are our challenges and the competitiveness of the audits placed players that have a very comfortable position.
Country, where they've been for 510, 15, 20 years I'm talking about more of operation side, having the officers.
Get a company with new technology, new processes with a new company a new vendor that is more of a hurdle for us in the actual technology scores because we still have.
The newest features the newest capabilities.
Performance, the best metrics, and we continue to invest and continue to come up with new products as we mentioned earlier.
Sure.
<unk> and pure protect.
Our new products and brand new products this year, which are leaders in their industries.
And.
Yeah. Two two players are also in the industry have merged.
To two large players and that we believe that makes it easier for us to compete.
I'm, a little bit less stress on on pricing and variability because they would have to have two bids into the competition will only have one.
So we maintain a competitive advantage as discussed with the new products and the tier one is actually.
An important product for us.
Beating a gap so to speak in our product portfolio because in the U S.
Lot of the vendors focused on the lumpy solution, but haven't yet.
<unk> solutions with a smartphone with communications that would all be capabilities in smartphone offers and judges and counties and other you know small regions in the U S are less familiar with the technology of the smartphone integrated these kind of solution.
I asked for one piece solution.
So we developed a lumpy solution for them similar to the old architecture, but we made it in our version with longest battery life lightest weight in gold.
Battery charging and what capabilities.
Now sticking to sleek design.
That really helped us in terms of our competitive edge on the product front, where we were missing a number of areas, where we have been for many years like our the house rats, and GPS monitoring and domestic violence, we maintain a strong position to believe.
Okay.
Got it.
Maybe last one for me is a little bit of maybe a two part question you mentioned continuing to invest in R&D and product.
Do you anticipate or is it reasonable to expect that you'll have.
More products that rollout in the next year or two that you expect to either.
Capture new customers with upsell to existing customers is that something that you could kind of continue to grow wallet share if it makes sense to ask it that way.
And I'll start with our.
Okay. Yeah, we do expect to have new products and new generations of our existing products. It does depend on the projects that we win.
Example, we wanted to Sweden administered Justice project, a few years ago, Brian to our project and they required also in may tracking in the prison bracelet.
Who are the chocolate vendors, while they are in prison and when they go on holidays or weekends, sometimes to the families who are attracted to the city.
The prison facility.
In some areas. They wanted alcohol monitoring will be monitored with alcohol somewhat sweater in the blood.
I'm sure they wanted to domestic violence in Romania, which we had and we of course have.
Yes.
Also to support a project that's such a size 50000 offenders simultaneously, but also to integrate new capabilities.
We saw our customers were interested in from a previous deployments of domestic clients around the world. So as we win more projects. We continue to evolve our platform and that same evolve platform goes with us over one.
Other new projects.
The other thing that you mentioned, which is important is multiple modules.
Same customer some of these customers start with house arrest or GTS monitoring or alcohol monitoring our domestic violence.
But then they extend into other capabilities because typically you want to.
Our government.
It was running this kind of solution. There's no reason to only have one program has always been the only have house reps you have in house reps people that are required to stay at home.
Or are able to also go to work.
And find out their families and they're not at risk. So they're okay. You can get all the GPS monitoring.
Some are not even on the house or is there just on domestic violence, they can't be demonstrating what are they can't.
Close to the wife whoever the victim.
Each of these programs while.
They have different applications and they.
They're all in the criminal Justice.
<unk>, they're all they're very useful in different manners and once you're in platform deployed its very very easy to add additional products.
The cost is lower and also the relationship is there with the customer so as we've done and we've been doing this for 34 years of supercomputer before we started focusing on tracking.
Back in the Gamba verification space, we would do driver's licenses and then passports and visas.
And at some point, we even tried to integrate payments.
Another solution. So once we get our foot in the door so to speak.
We look to expand with additional modules and now we have so many different modules of programs that we can offer to our customers. So a lot of the revenues and the wins that we've announced are the first module or the first one or two and over the years. The extent and then we expect existing customers to grow our revenues and also new customers to opt in for a more holistic solution with more capabilities.
More cost savings for them.
Better security for for the constituents in their communities.
Okay.
Got it. Thanks last question really around you talked a little bit about electronic monitoring being counter cyclical or having some counter cyclical tailwind.
Anything specific you could point to.
Conversations with customers or just broadly and talking to existing or.
Pipeline customers is there a sense pad.
And municipalities and governments are.
Increasingly recognizing the.
The cost of not.
Being in an <unk> program or.
Anything you can point to there would be great. Thanks.
And what does that do you see are our customers.
Experienced the cost of not being.
Right, Yeah, so because he can't that.
Being.
If E M is.
Attractive alternative tank car serration on our cost from a cost perspective.
Are you are you seeing.
Additional interests.
Due to the environment we're in today.
Yeah, well first of all.
As you mentioned.
We've talked about this for a while there's roughly 90% savings.
So if it's $80 billion operating prisons in the U S. In 2020 would have been.
They tended to billion dollars, we put everyone in house arrest that everyone has a good fit for house or asked but a vast majority of it.
A big Big population is.
Nonviolent offenders, which could be great for our programs like these.
So there is definitely the element of our cost savings. There's also the element of reducing recidivism.
Because right now it will go to prison.
Sometimes become more.
Knowledgeable and committing crime and then when they return to society. They don't have the proper reentry services copper.
Accompanying decided.
And if we can reprise it should have been ready to over 75%, we have been able to on various programs and you have around the world you see that go down to 35%.
Beyond the cost there's a there's a general.
Improvement in public safety or is it a counter cyclical yes.
When when the markets were looking into a looming recession that trying to save costs and you see that.
Corporation and also with the government entities.
We certainly look at that this is a viable opportunity for them to save cost.
But also countercyclical and.
<unk> been resilient and we saw that also don't Covid because people have to.
Yeah, there has to be a criminal justice services, you have to continue to retain offenders.
They play a central service.
Might say so.
As a.
If there is a recession one day.
Putting aside the fact that the recession could lead to lower.
The economic situation for many families more crime, which would actually be more tracking offenders.
That's one opportunity, but at least it will continue right.
All of these programs almost have you see around the world, whether it's in Europe or the U S. They started out and started in 2004, right now 100 or a thousand times larger than they were back then over the last 1920 years they've grown a lot.
<unk> growth through various market cycles through 2008, 2000 chat through Covid.
We expect that to continue so.
For it is interesting that investors also sometimes we're looking for.
Some diversity in the portfolio and this will be a little less.
Sensitive to the macro economy. This.
This is a great opportunity for them because.
We have to continue monitoring offenders criminal justice and she has to continue running it as a cost saving and also which is unfortunate a recession.
And low economic status families to lead to more prime community and then we have a bigger role to help.
The crime and are monitoring the defenders.
Okay.
Thank you.
Thank you very much. Your next question is coming from Mark <unk> Who's a private investor.
Your line is life.
Okay.
Yes. My name is buckled Nakamachi first of all I want to congratulate you for the great quarter and great year.
I wanted to ask you you raise the money.
The last quarter and how you're.
When you think you have enough money.
To continue on with the.
And with it.
Yes, good question and.
And I I publicly stated on the script it all in on the Q&A.
Are we still in a negative cash burn from operations cashews in 2020, one we added $9 4 million.
The decrease of $4 7 million in 2022, and that's because of these projects that are generating positive cash flow at least for the remainder of the company generated positive cash flow and sell them to other projects in Sweden, Denmark and as.
As we continue to add more projects that have a positive cash flows.
From them.
Overcome any fixed cost that you have from being a public company, you're just running additional positioned well.
So at that stage, we will be cash flow positive.
And we hope to achieve that but but but meanwhile, we raised some cash in our balance.
It's good and gives us it gives us the ability to launch more projects and to support existing ones.
For the near future and so over time, we will expect to have a.
Lower need for operating cash support from the market and it will depend on what kind of projects will launch if we we have over $200 million.
And some of these are massive projects and some require.
Working capital increases, if you're deploying a project of $100 million or more in size.
Somewhat more working capital we have today.
I think if that happens in the market and we'll be happy to to support our.
During the working capital needs.
Okay, great. Thanks, and another follow up question.
Do you have that negotiation.
Anything in the market.
The company wants to Bayou.
Could you repeat that are there any negotiations of our companies.
What.
Are you are you on the shelf I mean other other company maybe one on volume maybe.
The company.
I don't know a security company.
No.
Talk with other companies about it.
So we are currently not on the shelf we have not.
Put yourself out there for <unk>.
For acquisition.
We think do you have a good no we haven't.
Good opportunity going forward and we're trying to capitalize on it.
We're doing something like that that being said because we continuously.
When against many of our competitors there's been you.
You know, it's a vague vague discussions are from various sources of potential <unk>.
Interest to buy Supercomm, but it's not something that we have pursued extensively you looked into because we're really focused on our organic growth.
Thank you. Thank you I appreciate you taking my call.
Goodbye, Thank you very much.
Thank you very much. Thank you as well. Thank you very much if there's any remaining questions. So you can press star one on your thank you.
Okay.
Great.
No more in the queue now I can hand back over to you for any closing.
Remarks.
Yeah.
Yeah.
Oh, yes, sorry, thank you.
Operator, and I want to thank all of you for participating in today's call and for your interest in Supercomm. Please contact US directly if you have any additional questions Arthur iPhone.
We look forward to sharing our progress with you on our next conference call its filings and press releases. Thank you once again and have a great day.
Thank you very much everybody. This does conclude today's conference call. You may disconnect. Your phone lines at this time and have a wonderful day. Thank you for your participation.