Q1 2024 CSP Inc Earnings Call

Operator: Greetings. Welcome to the CSPI's first quarter fiscal year 2024 conference call. At this time, all participants are in a listen-only mode.

Greetings welcome to the C. S. P is first quarter fiscal year 2024 conference call. At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference. Please press <unk>.

Operator: A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Michael Poliviu. You may begin. Thank you, Holly.

<unk> zero on your telephone keypad. Please note. This conference is being recorded I will now turn the conference over to your host Michael <unk> you may begin.

Michael Poliviu: Hello, everyone, and thank you for joining us to review CSPI's fiscal 2024 first quarter results conference call, which ended December 31, 2023. With me on the call today are Victor DeLovo, CSPI's Chief Executive Officer, and Gary Levine, CSPI's Chief Financial Officer. After Victor and Gary conclude their opening remarks, we will then open the call. Statements made by CSPI's management on today's call regarding the company's business that are not historical facts may be forward-looking statements as the term is identified in federal securities laws. The words may, will, expect, believe, anticipate, project, plan, intend, estimate, and continue, as well as similar expressions, are intended to identify forward-looking statements. Thoracic statements should not be read as a guarantee of future performance or results.

Thank you Hello, everyone and thank you for joining us to review Cspi's fiscal 2024 first quarter results Conference call, which ended December 31, 2023 with me on the call. Today is the logo Cspi's Chief Executive Officer, Gary Levine, Cspi's Chief Financial Officer.

Victor and Gary conclude their opening remarks, we will then open the call for questions.

Statements made by <unk> management on today's call regarding the company's business that are not historical facts may be forward looking statements as determined as identified in federal Securities laws.

Words may will expect believe anticipate project plan intend estimate and continue as well as similar expressions are intended to identify forward looking statements.

<unk> looking statements should not be read as a guarantee of future performance or results. The company cautions you that these statements reflect current expectations about the company's future performance or events and are subject to several uncertainties with in other words.

Michael Poliviu: The company cautions you that these statements reflect current expectations about the company's future performance or events and are subject to several uncertainties and other influences, many of which are beyond the company's control, that may influence the accuracy of the statements and the projections upon which the segments and statements are made. Factors that may affect the company's results include, but are not limited to, the risks and uncertainties discussed in the risk factor section of the annual report on Form 10-K and the quarterly reports on Form 10-Q filed with the securities. Overlook statements are based on the information available at the time those statements are made and management's good faith belief as of the time with respect to future events.

Any of which are beyond the company's control.

The accuracy of the statements and the projections upon which the segments and statements of our base.

Factors that may affect the Companys results include but are not limited to the risks and uncertainties discussed the risks.

Risk factors section of the annual report on Form 10-K, and quarterly reports on Form 10-Q filed with Securities and Exchange Commission.

Forward looking statements are based on the information available at the time those statements are made and management's good faith belief.

With respect to future events.

Michael Poliviu: All overlook statements are qualified in their entirety by this cautionary statement, and CSPI undertakes no obligation to publicly revise or update any overlook statement, whether as a result of new information, future events, or otherwise, after the date thereof. With that, I'll turn it over to Victor DeLobo, Chief Executive Officer. Victor, please go ahead.

Forward looking statements are qualified in their entirety by this cautionary statement.

We undertake no obligation to publicly revise or update any forward looking statements, whether as a result of new information future events or otherwise after the date thereof with that I'll turn it over to Victor <unk> Chief Executive Officer Victor. Please go ahead.

Victor DeLovo: Thanks, Michael. And good morning, everyone. Early this morning, we announced our fiscal 2024 first quarter results. However, before I asked Gary to review the quarter, I want to spend a few minutes highlighting two developments that were recently announced, as I believe these truly demonstrate our growing business prospects and continued optimism with high-performance products in the technology solution business. To begin, the launch of the AZT Protect offering is and continues to be a game-changing development within the high-performance products, or HPP business, because the advancements allow us to offer our customers a giant leap forward in the evolution of cybersecurity services. A few days ago, we announced our largest and most significant contract to date for AZ, a multi-million dollar agreement with a global pharmaceutical company deploying AZT across its global manufacturing operation technology This customer appreciated the enormous risk of cyber security attacks on the facilities, which could lead to theft of intellectual property, compromised safety and quality, regulatory fines, and major disruptions to its manufacturing process.

Thanks, Michael and good morning, everyone earlier. This morning, we announced our fiscal 2024 first quarter results. However, before I ask Garett to review the quarter I want to spend a few minutes highlighting two developments that were recently announced because I believe these truly demonstrate our growing business prospects and continued optimism.

With high performance products and the technology solution businesses.

To begin the launch of the AZT protect offering is and continues to be a game changing development within the high performance products, our ACP business because of the advancements allow us to offer our customers a giant leap forward in the evolution of cyber security solutions.

A few days ago, we announced our largest and most significant contracted date for a C T.

A multimillion dollar agreement with a global pharmaceutical company deploying a Z T across its global manufacturing operations technology or Ot.

Protecting over 40 facilities in response to the growing cyber security threat to Ot from hostile nation States terrorism, and Organised cyber crime.

Discuss about appreciate the enormous risk of cyber security attacks on the facilities. It could lead to a theft of intellectual properties compromise safety and quality regulatory fines and major disruptions to its manufacturing process.

Victor DeLovo: However, many others remain extremely vulnerable and are ill prepared to protect their critical assets from the new wave of cybersecurity threats that can bypass network, and bypass protections in modern cloud-based next generation antivirus. The second development that was also recently announced was a five-year multi-million dollar contract to provide managed services for a prominent Florida public college, one of the largest and most diverse institutions of higher education in the nation. We will deliver proactive monitoring, management, and support for college critical infrastructure, including networking, security, and private cloud services. I believe these two developments are a strong indicator of future success, and it's precisely why the board of directors had the confidence to raise its quarterly dividend to five cents per share. I will spend a few moments highlighting the technology solutions or the TS business, and then I will focus the majority of my comments on the AZT offering as it has the potential to dramatically change our growth curve. The TS business performed as planned, and we continue to be excited about the current business as well as the leads being generated on a daily basis from new and existing customers. The TS business accounted for $14.7 million of the overall revenue, and its success continues to be driven by our customers' increasing use of our implementation, installation, and training capabilities.

However, many other remain extremely vulnerable and are they will prepare to protect their critical assets from new wave of cyber security threats that can't bypass network bypass protections and modern cloud based next generation anti virus solutions.

The second development that was also recently announced what was it five year multimillion dollar contract to provide managed service says for a prominent Florida public College, one of the largest and most diverse institutions of higher education in the nation.

Would deliver proactive monitoring management and support for college critical infrastructure, including networking security and private cloud services.

I believe these two developments are strong indicators of the future success and it's precisely why.

Yeah.

The board of directors had the confidence to raise its quarterly dividend to <unk> <unk> per share I will spend a few moments highlighting the technology solutions or the Ts business and then I will focus the majority of my comments on the AZ T offering as it has the potential potential to dramatically change our growth curve.

The T S business performed as planned and we continue to be excited about the current business as well as the leap leads being generated on a daily basis from new and existing customers.

The T S business accounted for $14 7 million of the overall revenue and its success continues to be driven by our customers increasing use out of our implementation and installation and training capabilities as.

Victor DeLovo: As I stated on the last call, UCAS has become a profitable business, and based on our current information, we ended the fiscal first quarter with an increase in clients based on our current information, and lead flow will continue to see an upward swing in client activity as we move throughout fiscal 2020. As many of you know, it's been a challenging business environment for several years, and the team's ability to remain engaged with customers is amazing. I believe the "Yes, we can!" attitude has enhanced our clients' loyalty because they recognize that our products and solutions are the most effective, cost-efficient answer to their critical needs. For example, while our cruise-related business has been relatively quiet during the following weeks of the pandemic, the team has remained on the ready, and we are beginning to see some positive developments.

As I stated on the last call. The Ucas has become a profitable business and we ended the fiscal first quarter with an increase in clients that based on our currently current information.

And leads flow will continue to see an upward swing in the clients' activity as we move throughout the fiscal 'twenty 'twenty four.

As many of you know, it's been challenging business and Brian for several years that team's ability to remain engaged with customers is amazing I believe that yes can do attitude has enhanced our clients' loyalty because they recognize that our products and solutions are the most effective cost efficient answer to their critical needs for.

For example, while our crews related business has been relatively quiet during the following.

The pandemic. The team has remained on the ready and we are beginning to see some positive developments.

For example, we received orders for several shifts from one of the cruise line operators and the consistent growth of our non cruise related shipping business is continuing as we currently working with one of the largest freight operators specializing in containerized ocean exports, serving numerous ports worldwide with it.

Victor DeLovo: For example, we received orders for several ships from one of the cruise line operators, and the consistent growth of our non-cruise related shipping business is continuing as we're currently working with one of the largest freight operators specializing in containerized ocean exports, serving numerous ports worldwide with an extensive global agent network, and has become one of our larger MSP customers. Turning now to our high-performance products, our HPP business, my comments will focus slowly on the emerging AZT offering as it continues to generate a significant amount of interest in a market that we believe will grow to over $50 billion based on the number of devices that need to be protected across the relevant verticals. We are excited about the industry's positive reaction to AVP.

Extensive global agent network and has become one of our larger MSP customers.

Turning now to our high performance products are H P. P business My comments will focus focus slowly on the emerging AZT offering as it continues to generate a significant amount of interest in the market that we believe will grow to over 50 billion based on the number of devices that need to be protected across the relevant verticals.

We are excited about the industry's positive reaction to AZT.

Victor DeLovo: And we remain bullish as the sales funnel is getting larger and is attracting prospects across the Fortune 500. As a reminder, ADT's progress allows us to offer our customers a giant leap forward in the evolution of cybersecurity. AZT's performance surpasses what's available on the market today, and it's a new generation of endpoint cybersecurity protection designed for critical operational technology environments. For example, and based on internal testing, we believe AZT would have stopped SolarWinds Sunburst malware used during the attack after the initial breach.

And we remain bullish as sales funnel is getting larger and is it attracting prospects across the fortune 500.

As a reminder, azt's advanced them. It allows us to offer our customers a giant leap forward in the evolution of cyber security solutions Azt's performance surpasses, what's available on the market today and its new generation of endpoints Cyber security protection designed for critical operation technology environments.

For example, and based on the internal testing, we believe AZT would've stopped solar wind Sun burst malware using used during the attack after their initial breached the unique patented solution protects a line organization end points for a full spectrum of cyber attacks and attack techniques, including the most.

Victor DeLovo: The unique patent solution protects a line of organization endpoints from a full spectrum of cyber attacks and attack techniques, including the most advanced zero-day attacks, malware, ransomware, supply chain vulnerabilities, and even those threats that are completely unknown to security. By deploying artificial intelligence capabilities, AZT automatically halts attacks before damage occurs. Sir, sorry, seamless operations without disruption or downtime. It lowers the risk of application code-based vulnerabilities from being exploited while running on endpoint devices to near zero.

Zero day attacks malware ransomware supply chain vulnerabilities.

Even those threats that are completely unknown to security teams by.

By deploying artificial intelligent capabilities AZT automatically house attacks before damage occurs.

Sir servings.

Seamless operations without disruption or downtime.

It lowers the risk of applications code base vulnerabilities from X y or running on endpoint devices to near zero. This removes the need for constant security patching updates and associated cost of production downtime.

Victor DeLovo: This removes the need for constant security, patching updates, and associated costs of production downtime. On the last call, I mentioned the number of industry events and conferences the team attends. At each one, our name and reputation are growing, and we are garnering more and more attention. For example, Gary Southwell, CSPI's General Manager of ARIA Cybersecurity, recently hosted a webinar with retired Pfizer Global Head of Automation Engineering, Jim Labon. They discussed a wide range of challenges manufacturers face in today's new threat landscape. They delved into issues manufacturers need to address, ranging from how to select the right technology to best practices to ensure critical manufacturing operations are protected. They focused on how current, Passive, and active cloud-based security solutions are failing to protect against the new era of AI-embedded attacks, creating a substantial financial regulatory and reputational risk in manufacturing sectors such as pharmaceuticals. The webinar demonstrated how ARIA Cybersecurity's breakthrough solutions for OT environments would have stopped the SolarWinds attack and other recent high-profile attacks on critical infrastructure, where existing defenses failed.

On the last call I mentioned, the number of industry events and conferences that team attended.

And that each one of our name and reputation is growing and we are garnering more and more attention for example, Gary Southwell C. S. P. I as general manager of various Arbor Security recently hosted a webinar with retired Pfizer's global head of automation Engineering, Jim Law Bonnie.

They discussed a wide range of challenges manufacturers face in today's.

<unk> threat landscape, they delved into issues manufacturers' need to address ranging from how to select the right technology to best practice.

Practice to ensure our critical manufacturing operations are protected.

They focus on how current.

Passive and active cloud based security solutions are failing to guide against the new era of AI embedded attacks, creating substantial financial regulatory and reputation of rescue manufacturing sectors, such as pharmaceuticals. The.

The weapon out demonstrated how area cyber securities breakthrough solutions for Ot environments would have stopped the solo and attacking other recent high profile attacks aren't critical infrastructure, where existing defenses have failed. We are planning additional weaponized every quarter going forward.

Additionally, we have.

We will be attending several conferences in the coming months, including the C. S. Four C. A manufacturing conference in Houston, and the distribute Tech International conference in Orlando.

Victor DeLovo: We are planning additional webinars every quarter going forward. Additionally, we have. We will be attending several conferences in the coming months, including the CS4CA Manufacturing Conference in, and the Distribute Tech International Conference in Orlando.

Our current customers are.

A very chemical and national security pharmaceuticals, demonstrating the breadth of offering in fact, there is no limit nor industry, we can't access through our AZ T offering given the wide range of needs of companies dealing with constant attacks on their enterprises.

Victor DeLovo: Our current customers are varied, chemical, national security, and pharmaceuticals, demonstrating the breadth of our offering. In fact, there is no limit or industry we can't access with our AZT offering given the wide range of needs of companies dealing with constant attacks on their enterprises. Our goal is to ensure the team remains focused and is able to deliver consistent results, which basically means it's just as important to pursue smaller transactions while still hunting elephants, which can help, which can take up to several months to close.

Our goal is to ensure the team remains focused and is able to deliver consistent results, which basically means it's just as important to pursue smaller transactions, while still hunting elephants, which can help.

Which can take up to several months to close.

Additionally, we have continued to add resellers to leverage their knowledge expertise and customer depth to drive greater adoption of ARIA Zero Trust protect including the addition, this week a leading cyber security our bodies are firm and reseller, which serves around 6000 companies worldwide, including.

Gary: Additionally, we have continued to add resources to leverage the knowledge, expertise, and customer depth to drive greater adoption of ARIA Zero Trust Protect, including the addition this week of a leading cybersecurity advisor firm and reseller, which serves around 6,000 companies worldwide, including a focus on large enterprises in the world. To summarize, we remain cautiously optimistic and continue to position the company for greater success throughout fiscal 2024. We have two stellar businesses, the TS business, which has been the growth driver over the past few years, and the reemergence of the HPP through AZT offering is generating significant buzz throughout the organization and within the industry. With that, I will now ask Gary to provide a brief overview of the fiscal first quarter financial performance. Gary

<unk> focus on large enterprises in the world.

To summarize we remain cautiously optimistic and continue to position the company for greatest success throughout fiscal 'twenty 'twenty four we have to sell a business is the T. S business, which has been the growth driver over the past few years and the reemergence of the H P. P through a Z T offering is generating sit there.

But throughout the organization and within the industry.

With that I will now ask Gary to provide a brief overview of the fiscal first quarter financial performance Gary.

Thank you Victor.

For the first quarter ended December 31, 2023, we reported revenue of $15 $4 million compared to $18 3 million in the year ago fiscal first quarter.

The revenue could have been higher.

Gary: Thank you, Victor. For the first quarter ended December 31st, 2023, we reported revenue of $15.4 million compared to 18.3 million in the year ago fiscal first quarter. The revenue could have been higher, that is, if certain contracts had been signed as expected towards the end of Q1. However, there were push-outs to the end of the year in the holiday season, and signed contracts were. Fine. That's fine. Earlier this quarter and will benefit fiscal Q2 revenue, our Q1 gross revenue was $4.1 million, or 26.6% of revenue, compared to $5.8 million, or 31.7% of revenue, in the same prior year period. The decrease in gross margin compared to the year-ago period was anticipated and due to the mix of business and the lower margin profit.

That is if certain contracts were signed is expected towards the end of Q1.

However, there were pushed out to.

To the end of the year and the holiday season and signed contracts work.

Fine fine.

Earlier, this quarter and will benefit fiscal Q2 revenue.

Our Q1 gross revenue was $4 $1 million or 26, 6% of revenue.

<unk> to $5 8 million or 31, 7% of revenue in the same period prior year period.

The decrease in gross margin compared to the year ago period was anticipated was due to the mix of business and the lower <unk>.

Margin products.

We continue to believe our gross margin will expand as the business transitions, especially the a Z T offering to higher margin products and services.

Gary: We continue to believe our gross margin will expand as the business transitions, especially the AZT offer, to higher-margin products and services. For the first fiscal quarter, our engineering and development expenses were $700,000. $173,000 lower from the year-ago fiscal quarter as we reduced outside contractors and elected not to fill some open positions.

For the first fiscal quarter, our engineering and development expenses were $700000.

$173000 lower from the year ago fiscal quarter, as we reduced outside contractors and elected to not feel some open positions.

Gary: Our SDMA costs for the fiscal first quarter were $3.7 million compared to $3.6 million in the year ago fiscal first quarter; a slight year-over-year increase is attributable to the addition of several salespeople and increased conference participation to help us raise awareness of the AZT offer. We reported a slight net loss of $73,000 or $0.02 per diluted share for the fiscal first quarter ended December 31st, 2023, compared to a net income of $1 million or $0.21 per diluted share for the fiscal first quarter ended December 31st, 2022. The company had cash and cash equivalents of $25.6 million as of December 31st, 2023, compared to cash and cash equivalents of $25.2 million as of September 30th, 2023.

Our SG&A costs for the fiscal first quarter with $3 7 million compared to $3 $6 million in the year ago physical first quarter.

The slight year over.

Year over year increase is attributable to the addition of several salespeople and increased conference participation to help us raise awareness of the a Z T offering.

We reported a slight net loss of $73000 or two cents per diluted share for the fiscal first quarter ended December 31, 2023, compared to the net income of $1 million or 21 cents per diluted share for the fiscal first quarter.

At December 31, 2022.

The company had cash and cash equivalents of $25 $6 million as of December 31st 2023.

Third to cash and cash equivalents of $25 2 million as of September 30th 2023.

Gary: We believe our robust financial position allows us to be flexible and successful in implementing our operating initiative and, if necessary, leverage this to finance large customer agreements which have been highly successful in the past for CSPI. As Victor mentioned earlier, the Board of Directors approved an increase in the quarterly dividend to five cents per share, payable on March 8, 2024, to shareholders of record on the close of business on February 26, 2024.

We believe our robust financial position allows us to be flexible and successfully implement our operating initiatives.

If necessary leverage this financial year.

Finance large customer agreements, which have been highly successful in the past for C. S. P. I.

As Victor mentioned earlier, the board of directors approved an increase in the quarterly dividend two five cents per share payable on March eight 2024 to shareholders of record on the close of business on February 26 2024.

Operator: With that, I will turn it over to the operator to take your questions. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question... You may press star 2 if you would like to remove your question from the line.

With that I will turn it over to the operator to take your questions.

Certainly at this time, we will be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad.

Confirmation tone will indicate your line is in the question queue. You May Press Star two if you would like to remove your question from the queue.

Brett Davidson: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the start key. One moment, please, while we poll for questions. Your first question for today is coming from Brett Davidson with Investless. Good morning. It must be pretty satisfying to finally land that bigger deal. Oh my God.

For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys, one moment, please while we poll for questions.

Your first question for.

Today's coming from Brett Davidson with invest letter.

Good morning, I'm wondering.

Must be pretty satisfying the finally land that bigger deal.

My God.

Victor DeLovo: And, you know, I'm thinking too. So, as far as, um, you know, salespeople, I know you added some in the past. Um, has that changed your thinking any? Are there plans to add more along the sales lines, or are you guys pretty set right now?

Yeah.

And.

I'm thinking too.

So as.

As far as you know salespeople I know you added some in the past.

Has that changed your thinking any is there plans to add more along the sales lines or.

Victor DeLovo: No, we're interviewing other people right now, so we plan on adding to that this quarter, and in the future. Has it changed the company's compensation philosophy? you know, as far as share grants or, kind of like tying these people to the.

Are you guys pretty set right now.

No. We're interviewing other people right now so we're a lot we plan on adding to that this quarter.

In the future.

It is it has it changed like the company's compensation philosophy.

You know as far as share grants are.

Kind of like tie in these people to adopt.

Brett Davidson: The prospects of the company overall, All that is on the table when we talk to these individuals. Yeah, I mean, you know, I'd love to see the people that are working there and selling this thing. I'm highly invested in it. So it's the performance of the company. I think that would be just a great idea.

Prospects of the company overall.

Yeah.

All of that is on the table when we when we talk to these individuals.

Yeah, I mean, I'd love to see the people that are working there in selling this thing.

Highly invested in the.

So.

You know the performance of the company.

I think that would be just a great idea.

Victor DeLovo: And then, you know, a little bit on the revenue recognition of that contract the other day. How is that going to run through the income statement? Is that it?

And then you know a little bit on the revenue recognition of that their contract. The other day, how is that going to run through the.

The income statement is it.

Victor DeLovo: Is that going to be all at once, or is that going to be spread out over time? That's all at once. Okay, so that'll drop this coming quarter. Nice. Um, uh, and last time we talked, I knew that the cruise business was still kind of slow getting rolling here again. Has that changed at all?

Is that going to be all at once or is that gonna be spread.

Spread out over time.

That's all at once.

Okay. So that'll drop this coming quarter nice.

And.

And last time, we talked I know that you know the cruise business was still kind of.

Slow getting roll in here again is has that changed at all is there any more progress on the.

Victor DeLovo: Is there any more progress on the business? Yeah, we... We made some progress on some different work that we've done in the past. I can't mention what kind of work we're doing with them, but it's a. We kind of... moved into new technology with the cruise line, and we're rolling it out to a bunch of ships. We won't have to travel as much as we used to in the past, can do it a lot remotely, but yeah, it gave us a new form of income from these cruise lines that'll be coming over the next couple of quarters. And what is the size of that, you know, business like? Um, it's in the hundreds of thousands. And is this applicable to pretty much all the cruise lines, or is this just like certain customers that still take advantage of it? No, every cruise line could do it.

Cruise ship business Yeah, we.

We made some progress on.

A little different work that we've done in the past.

I can't mention what kind of work, we're doing with them, but it's a we we kind of.

Moved into it.

Our new technology with the cruise line and we're rolling it out.

A bunch of ships, we won't have to travel as much as we used to in the past. It's we can do it a lot remote but yeah I gave us a new.

Form of income from from these cruise lines that'll be coming over the next couple of quarters.

And what is the size of that business look like.

It's in the hundreds of thousands.

Got it.

And is this applicable to pretty much all the cruise lines or is this just like certain customers that you'll take advantage of it.

No every cruise I could do it we're just not talking to every cruise line about it yet you know getting in front of them as you know half the battle.

Victor DeLovo: We're just not talking to every cruise line about it yet. You know, getting in front of them is, you know, half the battle. And the deal with the pharmaceutical company, I know you guys did not release the name of that. Um, are you guys able to use the name of that company when you are, uh, discussing sales with other potential customers? Um, with permission, yes.

Yeah.

Interesting.

And the you know that deal with the pharmaceutical something I know you guys did that released the name of that.

Hum are you guys able to use the name of that company. When you are discussing.

Discussing our sales, but with other potential customers.

With permission yes.

Victor DeLovo: So that is a possibility that you could, you know, we have to ask permission. Yes. Yeah, they are just reference accounts. Yeah. What was it, Gary?

So that is a possibility that you would be we have to ask from yes, yes. They are reference account.

Yeah, what was it Gary.

Victor DeLovo: They're a referenceable account, but we have to get their approval first. Got it. All right, well, it was pretty exciting seeing those press releases. Hope to see more of them in rapid succession here.

There are referenced symbol account.

Okay, Yeah, it will get there.

Approve on the account.

Alright, well was you know pretty exciting so you know those press releases.

Hope to see more of them in.

Succession here.

Victor DeLovo: As soon as I said to numerous people numerous times, you know, I don't hold anything back, you know. Until, you know, as I said earlier, I thought the ink was close to being dry on some of them, but working with these large organizations, everything takes way longer than expected, you know. You know, some of these things needed 10 signatures, and getting 10 signatures, I guess, in a large organization. It takes months, not weeks.

As soon as I said to numerous people numerous times you know I don't hold anything back.

Hum.

Until you know I had said earlier you know the I thought the ink was close to being dry on some of them by working with these large kind of working with these large organizations everything takes way longer than expected you know.

You know some of these things needed 10 signatures and getting 10 signatures I guess in a large organization.

It it takes months not weeks.

Brett Davidson: Yeah, well, it's nice to have, no matter how confident you are in the product, you know, there's always that lingering doubt in the back. It's nice to see that first big contract come through kind of confirming that, you know, you're headed down the right path. It was, yeah, exactly, exactly.

Yeah, well, it's nice to have you know no matter how come free to air the product you know theres always that lingering doubt in the back it's nice to see that.

The first big contract come through kind of.

Confirming that you know you're headed down the right path. It was yeah exactly exactly.

And.

Victor DeLovo: Yep. And, uh, So yeah, I'm very, very glad to see that. Glad that I've finally put behind you the big deal there, and looking forward to plenty more. So great job. Bring everybody along with you.

So yeah, I'm very very glad to see that.

Glad that you know finally put behind you the big deal there and looking forward to plenty more so great job.

Bring everybody along with you.

Victor DeLovo: Yeah, we're trying. We're trying. Thanks, Brad. I appreciate your support.

Yeah, we're trying we're trying thanks, Brad I appreciate your support.

Victor DeLovo: All right. Your next question is coming from Joseph Murgis with Sengren Investments. Thank you, guys. Good morning, Joe.

Alright.

Your next question is coming from Joseph emerges with Sanguine investments.

Good morning, guys how are you today.

Joseph Murgis: I just want to tell everybody, very nice last week and, from an investor standpoint, we had a 100% increase in the... That's the good news. The bad news is that we went from one to two people at the end of the year. So I've been to annual meetings where we had a game-changing product, standing room only... we're not there yet... so there may be the possibility down the road that we'll have standing room. A couple of quick things. I researched just briefly when you announced your release of the pharma. Merck, which was breached a number of years ago, and I just. Tell us at the market, no, damages to the mercury insurance company. 1.4 billion dollars.

Good morning, Joe.

I just wanted to tell everybody that you're reading this very nice last week, and we had a I've learned from.

From an investment Investor standpoint, we had 100% increase in the attendance.

That's good news the bad news, we went from one to two people up.

So I've been I've been to annual meetings, where we had a game changing product and it was standing room only we're not there yet.

But maybe the possibility down the road it will have a standing room only and in the at the meeting.

A couple of quick things that I at.

Let me start briefly on your.

Your released at the pharma contract the.

The Merck breach, which was breached and a number of years ago and I guess.

I thought that the market now here in the <unk>.

Damages on the Merck Greek.

<unk> companies paid $1.4 billion.

Joseph Murgis: That's how much damage was done by that breach with Merck. So just to give you an indication of how much some of these OT environments are at risk when that type of damage happens. I don't know how. Do you guys know how?

That's how much damage was done by the debt that breach with Merck. So just give me an indication of how much. Some of these oh T environments are at risk when that type of a damages award can be out there I don't know how do you guys know how the insurance is <unk>.

Victor DeLovo: Insurance is involved with these companies. I mean, is there a separate policy for, let's say, the OT environment as opposed to the IT environment for breaches, or is this kind of all rolled into one? I have no idea, Joe. I have no idea how they eat.

Ball with these with these companies I mean is there at a separate policy for I'd say, the Ot environment as opposed to the IP environment for for breaches or is this kind of all rolled into one.

Do you not know that I have no idea Joe I have no idea, how they eat well I'm, just saying what do you see that kind of a I mean, when he when you hit the Ot environment or you could take down factory I mean for extended period of time, and so you can see where our where the cost could be quite dramatic so and and I.

Victor DeLovo: I'm just saying, when you see that kind of, I mean, when you hit the OT environment, you could take down factories for an extended period of time. And so you can see where the cost is quite dramatic, and I don't know how these insurance companies work, but I imagine they are pressuring these companies to either provide better security or premiums on the policy. Either there'll be no policy, or the premiums will be sky high. I can tell you, Joe, that in our case, as a small company, what we had to go through just to get our cybersecurity, and in talking to the insurance companies, they're taking a very hard line on it, and you need tools such as we have to implement to help. Because if you don't have any protection, you don't get any insurance. They will give you nothing.

I don't know how these insurance companies work, but I imagine there are pressuring these companies to either provide better security or are the premiums on a policy either there'll be no policy or or the premiums would be sky high on that type of work.

Yeah.

I can tell you Joe that just in our case as a small company. What we had to go just to get our cyber security and it's in and talking to the insurance companies. They are taking a very hard line on it and you need tools such as we had to implement to help because if you.

Don't have any protection you don't get any insurance they will give you nothing.

Joseph Murgis: Well, and that's, I guess, the point I'm trying to make. And, of course, we're too early with the AZT Protect rollout to stab. In other words, if you could become almost a best in breed for the OT environment, then there would be demands from either the insurance companies or to protect yourself to the best you can, so I'm just hoping that we can get ourselves known well enough that the companies, even the insurance companies, begin to recognize the benefits of the AZT Protect product. We'll see how that goes down the road. Uh... a couple things that you mentioned at the I'm trying to recall what you said about that. Six, six total. Two that are already approved, and two that are in the last waiting stage, so I think, if my memory serves me right, I think it was supposed to be February or March somewhere.

Well and that's I guess the point I'm trying to make and of course, we're too early.

Easy team protect rollout to two established I've never if you become almost the best in breed for the Ot environment. Then then that would be demands are for me, there's insurance then or.

To protect yourself.

It's the best we can so I'm, just hoping that we can get ourself, knowing well enough debt.

That the companies even the insurance companies begin to recognize the no that would be.

The benefit of the AZ people care product.

We'll see how that goes down the road a couple of things at the annual meeting you mentioned one was the internet.

Intellectual property.

He said Victor that there was that we have two patents awarded and what do we have six or eight more pending is there.

Recall, what you said on that six six total.

Thanks to two that are already approved two that are in the last waiting stage. So I think the if my memory serves me right I think it was supposed to be February March somewhere you know, it's the the waiting stage of just making sure you know no. One has any issues and then two that are in more of the.

Victor DeLovo: You know, it's the waiting stage of just making sure that no one has any issues. And then two that are in more of the... The review, the review process. And I assume almost all of it is tied to the area platform, right? It's all the AZT. It's all 600, yep. Bye.

Longer term the review their review process.

And I assume.

Almost all of it is tied to the.

Area platform right.

All of the AZ T. It's all all things on.

Yep.

Okay.

Joseph Murgis: A couple things. I asked you two in R&D what we were doing, and I think you said we're in a beta test now, we're expanding the software, Android devices out there? Is that what you're saying? Yeah, it's on the roadmap. Yeah, Android's on the roadmap.

A couple of things I did ask you too on R&D, what are we doing and I think he said where.

We're in beta test now, where we're expanding our the software to Android.

Yeah.

Devices out there is that what you're saying it would we're testing yeah. That's on a that's on the roadmap yeah mhm androids on the roadmap and I think you were adding to the screen, even the screen capability, where you multiple screens can be reviewed by somebody's managed service providers are at one time, yeah, Okay all right.

Victor DeLovo: And I think you're adding to the screen capability where multiple screens can be reviewed by somebody's managed service providers at one time. Yeah, it's on the road map. Yeah, it's on the road map. We're still in development. Yeah, easy to protect in July. We weren't on version one. We were on multiple versions. We had gone through multiple versions before we came out with that, so it wasn't like it was the first version that came out there. And since then, of course, you added Linux, right? I don't know what version.

On the roadmap yeah, it's on the roadmap.

Yeah, I don't think a lot of people out there realize that when you when you introduced.

Easy to protect in July.

We weren't on version one we were on multiple very we had gone through multiple versions before we came out with that so it wasn't like it was the first version that came out there and since then that question that you had at the Olympics right I don't want Burger do you know what version we are now on a on the ACP protect product I mean, what I'm asking.

Joseph Murgis: Do you know what version we are now on the AZT Protect product? I mean, we must be six or seven. Yeah. No, I think we're on like 13. Really? Yeah. Well, see, even again, sometimes most people come out with the project 1.0, you know, but we're not there.

6% yeah.

We're in like 13, [laughter] really itchy yeah.

And again once I find it most people come out with it.

At.

1.0, you know.

We're not there so we've advanced this over a number of years a pretty extensively.

Victor DeLovo: So we've advanced this over the years pretty extensively. Yeah, I think I had mentioned before that, you know, our original goal was to get a version out and then add a lot of functionality and the bells and whistles as we moved along. Bye, through, you know, one of our large customers that we've talked about, they needed all the functionality immediately before they were willing to sign off on it, and that's kind of why it took a lot longer for the development. You know, truly, the first release that was available to sell was past July.

Yeah, I think I had mentioned before that you know our original goal was to get a version now and then add a lot of the the functionality and the bells and whistles as we we moved along.

But through you know one of our watch.

Customers that we've talked about [noise] they needed all of the functionality immediately before they were willing to sign off on it and that's kind of why it took a lot longer for the development and truly the first.

Release that was available to sell was in this past July.

Joseph Murgis: Well, so the end result was a more robust product as we finally came out with it, and I'm assuming that what we built can be utilized almost across the board in any industry. Like he said, uh... okay, what one thing on this major reseller agreement to find a contract is that one? You talked the last time about two major system integrations. Was this the contract that was just signed one of the two, or is this a separate one? group altogether.

So at the end result was a more robust product.

Yeah, we probably came out with it.

And I'm assuming that.

What we built it can be utilized almost across the board on any industry.

Like you said.

Ah Okay, well one thing on this major reseller agreement you just signed a contract.

Is that one.

Oh was that you talked last time about two major.

System integrators Mhm was this the contract that was just signed one of the two or is this a separate.

Altogether.

Victor DeLovo: No, it's a separate group. So, we're talking about other major integrators that we haven't... I think he's got two, two the last time, is this now three, or not?

Separate group because that group.

So when you're talking about others are major integrators that we haven't hmm.

I think you've got to Cuda last time, because it's not three or.

Joseph Murgis: Yeah, we're I think about half a dozen of, you know, I would say, decent size integrates. There's a couple that are real. This is a, you know, annual sales in the billions. So, you signed a contract, what's different? A contract works, but you're talking to others. I mean, are there performance requirements in the contract for the reseller, or is it just... Yeah, any one of them could have signed a contract, the number you're talking about.

Yeah, and that is where I think about a half a dozen of you know I would say.

Decent size integration, there's a couple that are real Wow. This is a you know.

Annual sales in the billions so.

And just a quick point out there.

When you signed the contract and what what's different.

With the contract versus what you were talking to the others. I mean is there any performance requirements and the contract before the retail or is it just a.

Our contracted.

Any one of them go to sign a contract of the number you are talking about.

Victor DeLovo: Yeah. Let's face it, anybody can sign on, but some of these larger ones, because they're courted by every, you know, every product out there, um, they only bring in new products where they believe, A, there's a gap. And then, of course, too, that there's a big, you know... There's a certain amount of revenue they can get from a product line, right? It's not, you know, one-time sales is something that they're not looking for.

Let's face it anybody can sign it but some of these larger ones because they accorded by every.

You know every product out there they only.

You know bring on new products, where they believe a theres a gap.

And then of course to that Theres, a big you know.

There's a certain amount of revenue. They can you know they can get from.

Our product line right, you're saying you know what one time sales is is something that they're not looking for so it took.

Victor DeLovo: So it took, I would say, at least six months to go through the process with them of them looking at the product and then also bringing our product into some of their customers and talking about it and getting feedback and looking at a real need that's out in their customers' environment, and that's kind of what brought it over the finish line to get the contract signed, because they believe there are enough of their customers that can look at this product. They're not guaranteeing anything, of course, but if there's truly a need and a gap and we are talking, you know, I would say at least a half a dozen of their customers already are in different stages. So we're hoping, you know, they will have a lot of customers.

Oh, I would say at least a six months to go through the process with them.

Of them you know looking at the product and then also bringing our product until some of their customers and talking about it.

And getting feedback and you know looking at a real need.

That's all in their customers' environments, and that's kind of what brought it over the year.

Now over the finish line to get the contract signed was the they believe there's enough for their customers that can look at this product you know, they're not guaranteeing anything of course, but if if there's truly a need and a gap and we are talking you know I would say at least half a dozen.

Their customers are already.

And different stages.

So where we're hoping you know they have a lot of customers you know, there's I think that the target that we looked at is somewhere over 500 potential customers that we can at least talk to that may have a need of some sort for AZ T O.

Victor DeLovo: You know, I think that the target that we looked at is somewhere over 500 potential customers that we can at least talk to that may have a need of some sort for AZP. I mean, it's a huge mark, yeah, just one other point and you brought this up at the end talked about that you often get called by people that are after or looking to buy either the TS through or buy into our managed services. In other words, an offering.

Okay, well that's great.

It's a huge market expand yeah, just one other point and your breakfast at the annual meeting you talked about that that you get you often get calls are down there and your interest in the T. S. A group for four people that are that are after are looking to buy it either the T. S.

Buy into our managed services in other words offering.

Joseph Murgis: We do want to buy our man in the service, uh... as if any of those talks have ever reached a point, or have we just not advanced those talks at all? Um, No, we're just concentrating on building the business. Okay, but you have fewer calls, or people want to know if we're even in the market to sell this thing. Yeah, so it's a lot of emails, you know, and there's a few people that actually catch me picking up the phone that I have conversations with. But right now, it's just about building that monthly recurring revenue. Yeah, the talks have never progressed as you were saying.

They want to buy your our managed service offerings.

Has any of those talks ever reached a.

Dollar.

Are you just not <unk>.

Advanced those talks at all we're not interested.

Now, we're just concentrating on building the business, okay, but Brett you have field calls or people want to know if we're we're even in the market to sell it.

Hey.

Yeah. So it's a lotta emails you know and there's a few people to actually catch me picking up the phone that I have conversations with but right now it's just about building that monthly recurring revenue.

The talks have never progressive now other than just the pure pure interests that people are floating and some questions out there that people are interested at all alright, well. Thanks, a lot appreciate it seems like where you now just a matter of time to get some of these are big numbers are across the board on for phrasing Tina Thanks, guys.

Victor DeLovo: No, the interest that people have, they're floating some questions out there to see if we're interested at all. All right. Well, thanks a lot. I appreciate it.

Will Lauber: Seems like we're, you know, just a matter of time to get some of these big numbers across the board for AZT. Thanks, guys. Thanks, Joe. Thanks, Joe. Your next question for today is coming from Will Lauber with Visionary Wealth Advice. Hi, um, can you, uh...

Yeah.

Thanks, Joe Thanks, Joe.

Your next question for today is coming from well well there with visionary wealth advisors.

Hi could you.

There's been some confusion on our end how about E. D. T. A product is being priced is that a.

Will Lauber: There's been some confusion on our end about how the ADT product is being priced. Is that a monthly recurring description or not?

Monthly recurring.

Subscription or.

Victor DeLovo: Yeah, moving forward with our customers, it is a monthly recurring charge. Gary had mentioned that this one is up front. And we made an agreement with the pharmaceutical organization just because they helped us test it for 18 months that they could purchase it, you know, up front as a one-time fee with yearly maintenance after that.

Yeah, I'm moving forward with with our customers. It is a monthly recurring Gary had mentioned that this one is upfront and we made an agreement with the pharmaceutical organization just because they helped US test it for 18 months that they could purchase it you know upfront.

As a one time fee with a yearly maintenance after that.

Victor DeLovo: But moving forward, you know, it'll be more of like a CrowdStrike model where it's a monthly recurring charge. OK, and is that priced by site or per user, per user?

But moving forward you know it'll be more of like a crowd strike model, where it's a monthly recurring.

Okay and is that priced a buy side or in per user per user.

Victor DeLovo: Yeah, per end point. I should say which it is, you know, we're in the. You know, we're not truly end users as laptops or in the server as end points, protecting the application. So if there's, you know, a server with 10 VMs, it would be, you know, basically 11 licenses for that. And if you had a thousand servers, you'd do the math on that. Okay. I guess one of the things that I noticed in this latest release compared to.

Per per endpoint I should say, which is you know where were in the you.

You know, we're not truly end user as as laptops were in the server as the endpoint.

Because we're protecting the application. So if there's a you know a server with Tenby EMS. It would be you know basically 11 licenses for that and if you've got 1000 servers you do the math.

On that.

Okay and.

I guess one of the things that I noticed.

Will Lauber: Some of the early ones, I guess, in particular, that Fortune 500 chemical company, I think that was just for one site. Pharmaceutical companies, does that include all their manufacturing sites, or is there still some that could be added later? Yeah, it's this is I'm hoping it's just the first phase. No guarantee. But you know once we roll these out, then we'll see what's what's next. And then with that whole manufacturing company, how are things going with that? Or is it, does that have to be, is it each plant manager that has to make the decision to add that? Or how about that?

And this latest release compared to the.

Some of the early ones are I guess in particular that are fortune 500, Chemical company I think that was just for one site.

Does this.

Forum's two companies does that include like all their manufacturing sites or is there still some that could be come on later.

Yeah. It's this is I'm, hoping it's just the first phase no guarantee but you know once we roll. These out then we'll see what's what's what's next.

Okay, and then with ACH or manufacturing company, how are things going with that or is that does that have to be because they're each a plant manager that.

It has to make the decision to add that or how is that.

Victor DeLovo: And which company is that? Oh, the chemical company? Yeah, unfortunately, we have to deal with each and every location separately. Where the pharmaceutical companies, this is being pushed out from a corporate level. It's a little easier for us to deal with this rollout than the other one, so it's been challenging, but you know, it's a process. And so it's in one facility now. What's the potential with that customer? How many facilities? I want to say there are 80 sites.

I know what your company is that.

Although the chemical company Yeah. We unfortunately, we have to deal with each and every location separately, where the pharmaceutical this is being pushed out from a corporate level, it's a little easier for us to deal with this.

This rollout [noise] than the other ones. So it's been a it's it's been challenging but you know it's it's a process.

And so it's doing one facility now what what's the potential with that customer how many facilities.

I Wanna say, there's 80 sites.

Okay.

Alright and.

Will Lauber: And, um, Have you guys been seeing any increased interest in the SEC rule about cybersecurity? Or how's that? I'm trying to point it out, we use it as a sales tool. You know, it's out there, and we're talking about it every time we talk about it. It's one of our selling points, not only the protection but you know what could happen if you don't, Okay. Well, thank you very much. Thanks. You're welcome.

Have you guys been seeing any increased interest from.

As you see a rule about cyber security or how's that kind.

Kind of playing out.

We are using as a sales you know its out there and we're talking about it every time, we talk about it. It's one of our selling points you know not only the protection, but you know what could happen. If you if you don't.

Okay.

Okay, well, thank you very much.

Mike Price: Have a good one. Your next question is coming from Mike Price, a shareholder. Good morning.

You're welcome have a good one.

Yes.

Your next question is coming from Mike price a shareholder.

Good morning, Thanks for taking my questions.

Mike Price: Thanks for taking my questions. I appreciate the press releases, but they're pretty vague. All of them have said multi-million dollars, and there's no way for us to evaluate what the impact is going to be on revenues.

I appreciate the press releases, but they're pretty vague all of them have said multimillion dollar and there's no way for us to evaluate you know what the impact is going to be to revenues and you said that you could use the the buyer of the S E T as a reference and try.

Victor DeLovo: And you said that you could use the buyer of the ACT as a reference in trying to secure new buyers, but what about publicly disseminating who a buyer is? It seems like it's in everybody's best interest, with their permission. It gives credibility to CSPI, and for the customer, it seems like putting up a sign in front of your house saying, I'm protected by this security, and that's almost a deterrent. It works the other way around. If they know what it is, then they could potentially know what to do, how to hack.

And to secure new buyers, but what about publicly disseminating who our buyer is it seems like it's in everybody's best interests with their permission. It gives credibility to the C. S. P I and for the customer it seems like putting up a sign in front of your house, saying I'm protected by this security and that's where most of that.

Deterrent.

Works opposite.

Victor DeLovo: Two, we don't have permission. It's right in the contract. We cannot use their name.

If you if they know what it is and they could potentially.

No what like what to do how to hack two we don't have permission it's right in the contract we cannot use their name we that.

Victor DeLovo: That was part of the terms and conditions. Two, we can use it on, as I said, a permission basis. Basically, calling a customer up, saying I have this customer, they would like to talk to you, they would like to have a reference, are you willing to speak with them?

As part of the terms and conditions to we can use it on as I said, a permission basis, basically calling customer off saying I have this customer they would like to talk to you do like to have a reference where you are you willing to speak with them.

Victor DeLovo: And if they say yes, then we can set up the call, and then we can move forward. So anytime I can use someone's name legally, I will do it. If I don't, it's for a reason.

And if they say, yes, then we can set up the call and then we can move forward. So anytime I can use someone's name legally.

I would do it if I didn't it is for a reason.

Victor DeLovo: Okay. On the last conference call, you said you were in discussions with 50 potential buyers of AZT. Can you give us an update on that? Um, yes, I'm in progress. BRAH. There's some that are moving again.

Okay.

On the last conference call you said, you're in discussions with a 50 potential buyers have a Z T can you give us an update on that.

Yes, I'm a progressed.

Uh huh.

There's some that are moving again I don't want to say it again, because then after I got you guys driving me crazy on exactly the were talking contracts, but when that is I have no idea, but yeah. It there they're all progressing some sell off some of them said, we love. It we don't have a budget for six months.

Victor DeLovo: I don't want to say it again because then after I get you guys driving me crazy on exactly what we're talking about. We're talking contracts, but when that is, I have no idea. But yeah, they're all progressing. Some fell off. Some of them said we we'd love it. We don't have a budget for six months, you know, it's a normal sales game, but you know some fall off some come in, and And you know, we're setting the shows did well for us. We have multiple POCs that came from the shows where, you know, they have the product, they're testing it, and, you know, after the testing, then we'll see, you know, how long it takes to We have a couple more shows coming up in March, which, you know, as they come up.

You know, it's it's a normal sales gain but you know some saw falloff some come in.

And are you know we're setting the shows did well for us.

You know we have multiple P. O sees that came from the shows.

Where you know they have the product they are testing it and you know after the testing then we will see you know how long it takes to close the deal but there are some progressing on that so are we.

Victor DeLovo: And they're, you know, we believe that it's the right audience; we'll be attending them. Okay, and if a reseller actually places, sells AZT, is this something that you'll disseminate the same as you do when you sell it yourself? Correct. Correct. Yep. Exactly.

We have a couple more shows coming up in March, which you know as they come up and there you know we believe that it's the right audience will be attending.

Okay, and if a reseller actually places sells a Z T is this something that you will disseminate to the same as you have when you sell it yourself.

Mike Price: Okay. And I asked this question on each of the last two conference calls about buying stock. Did you buy back any stock last quarter?

Correct correct, yes, exactly okay and I asked this question each of the last two conference calls about buying stock did you buyback any stock last quarter.

Victor DeLovo: No, but no, the company did not. I personally bought, you know, some stock again last quarter. Yes, all you bought was down five bucks. Couldn't have been better timing.

No by no the company did not I personally bought you.

Now some stock again last quarter, yes.

So you bought it was down five bucks it couldn't have been better timing and again, we have the same issue today with the stock down almost three bucks and down more earlier and you know with the roadway that you've you paint for us it still seems like a good use of the shareholders' cash appreciate the increase in the dividend, but it seems like a good use of cash going forward. It seems.

Mike Price: And again, we have the same issue today with the stock down almost three bucks and down more earlier, and, you know, with the roadmap that you paint for us, it still seems like a good use of, you know, shareholders' cash. I appreciate the increase in dividend, but it seems like a good use of cash going forward. It seems like there's quite a runway here, um... One final question, any thoughts about changing the name of the company? I mean, the company is definitely going towards cybersecurity. ARIA Cybersecurity. That's why we have RAS Cyber Security under the umbrella of, you know, CSPI because we still have the other business, you know, the TS business. Okay. Okay. I appreciate it. Thank you very much.

Like there's quite the runway here.

One final question any thoughts about changing the name of the company I mean, the company is definitely going towards cyber security our cyber security.

Yeah.

Yes.

That's why we have the ARIA cyber security on the umbrella or a C. S. P. I cause they'll still have the other business you know.

The T S business, okay. Okay I appreciate it thank you very much yeah.

Sergio Heber: Yep. Your next question for today is coming from Sergio Heber with Heber Reader. Good morning guys, and congratulations on the progress that you're making. I'm wondering about this. I understand that you can't disclose the customer without the customer's permission, but why can't you disclose the amount of the contract?

Your next question for today is coming from Sergey L Heber with Huber research.

Good morning, guys and congratulations on the progress that you're making I'm wondering you're about I understand that you can't disclose the customer without the customer's permission, but why can't you disclose the amount of the contracts.

Victor DeLovo: Um... Because we normally don't give we've never given exact amounts of contracts, and what they are, you'll, you know, we'll disclose them the next quarter when we actually recognize them. It's difficult for investors to put a price on the stock without knowing how much the contract is. And that's why I ask, and you're not giving any guidance. Are there plans to provide guidance in the future? Potentially, but not right now, is the reason that you're not giving out the amount of the contracts because it's a kind of pet competition, not to give away to the competition what the product sells for. That's part of it, yes. Okay, and then I have a question from a reader of my Seeking Alpha article, and I figured I'd pose it to you. I don't know how to answer this question, and I don't know if it's a fair question, but the companies and the enterprises that you're selling the ACT product are large entities that have their own IT departments.

Because we normally we don't give we've never have given exact amounts of contracts or.

And what they are you you know what we'll disclose the next quarter when we actually recognize it.

Well, it's difficult for investors to put up.

Our price on the stock without knowing how much the contracts are.

And that's why I ask them and you're not giving any guidance.

Are there plans to provide guidance in the future.

Okay.

Potentially but not right now.

Yeah.

Is the reason that you're not giving out the amount of the countries because it kind of.

Competitive competition.

Not to give away to the competition, what the product sells for.

That's part of it yes.

Okay.

And then I have a.

Question from a reader from way seeking alpha article and I figured I'll pose it to you I don't know how to answer. This question that I don't know if it's a fair question, but the companies and the enterprises that you're selling.

Sergio Heber: Why would they be customers of yours instead of developing the product for their IT? They want to develop a security product through their own IT. Okay, that's possible, I guess.

Victor DeLovo: So, with enough money, time, and expertise, anybody could potentially do it. Um, but, you know, if he's asking whether they have their own IT department or someone who doesn't have their own security department, you know, could we help manage that for them? The answer is yes. But, you know, whether you have your own IT department or not, you still need some type of product to do the inspection and, you know, the protection and the detection and everything else that goes along with that.

He is U S. U P proud of our large entities that have their own I T Department why would they be customers of U instead of the broker private food their IP.

They wanted to develop a security product with their own I T.

Okay, well a possible.

I guess, it's hard enough money time and expertise anybody could potentially do it.

But you know it if he's asking.

You know if they have their own I T department or someone who doesn't have their own security Department. You know could we help manage that for them. The answer is is yes.

Sergio Heber: But, you know, I'm a little confused about what he asked. Well, I couldn't answer the question either, and it came from more than one person. Basically, I don't think that the average person, including me, understands the complexity of security. There are so many products out there, and we're trying to figure out how do we know that. There's nothing else like the product and how disruptive it is. How can we judge that if we're not? I've asked experts in the field, and they can't answer the question.

You know whether you have your own I T department are or not you still need some type of product.

You know to do the inspection in you know in the protection and the detection and everything else that goes along with that but yeah, I'm I'm I'm a little confused on what he's asking.

Well I couldn't answer the question either.

Aim for more more than one person you basically I don't think that the average person, including B understands the complexity of security and there's so many products out there and we're trying to figure out how do we know that.

Victor DeLovo: And I think investors are trying to figure that out. So, you know, I think I've mentioned on calls that it's a crowded space, right? You know, everybody knows the big boys, right? The Palo Alto credit, you name it, right?

There is nothing else like this product and.

And that how disruptive it is how.

How can we judge that if without.

I've asked the experts in the field then they can answer the question and I think.

Victor DeLovo: Then there's the second tier, which, you know, I don't know exactly the number, but a couple of years ago, there were over 2000 other security companies of all sizes. So, of course, it's a crowded space. How do you separate yourselves?

Busters are trying to figure that out.

So you know I think I've mentioned on calls it's a crowded space right you know everybody knows the big boys right. The Palo Altos credit you you name it right.

Then there's a second tier, which you know I don't know exactly the number but a couple of years. It was over 2000 and other security companies of all sizes. So of course, it's a crowded space. How do you separate yourself. So you know that's a challenge that that you know we have to deal with every day so.

Victor DeLovo: You know, that's a challenge that, you know, we have to deal with every day. So...winning this contract, right, that's going to be our biggest selling tool because when you look at the company we sold to, they tested everything. They had the resources. God knows it took us over 18 months to close this deal.

Winning.

This contract right, that's going to be our biggest selling tool because when you looked at the company we sold to.

Victor DeLovo: So they have the option, and everybody out there in the security field is knocking on their door. So they have the option to look at many, many products, and for them to choose our product after, you know, literally over a year of testing, that's kind of how we believe, you know, our product does fit a need. You know, it's not just from, you know, of course, you know, I, some of the people on the phone have heard this, you know, we think our baby is beautiful, but it may not be. But having these customers, you know, test the product, look at it, and it fills a need, especially with the later XP windows, the older versions, all these other companies are really not supporting the old versions of Linux and Windows So not only can we do the current ones, but we can go all the way back.

They tested everything they have the resources God knows it took us over 18 months to close this deal.

So they have the option and everybody out there security wise was knocking on their door. So they have the option to look at many many products and for them to choose our product. After the you know literally over a year of testing that's kind of how we are we believe you know our prior.

Does it fit a need you know its not just from you know of course, you know some of the people on the phone I've heard. This you know, we think I babies beautiful, but it may not be but having these customers you know test a product look at it and it fills a need especially with the the later X P.

Victor DeLovo: And as, you know, I suggest everybody who's on the call go back to the webinar that we did. It really breaks down the value of the product, why we're different, and how we complement other existing products, right? As Jim Labonte mentioned on the webinar.

Windows. The older versions of these all of these other companies I really not supporting.

The old versions of Linux and Windows, So not only we can do the current ones, but we can go all the way back and as you know I suggest everybody who's on the call I'll go back to the webinar that we did it really breaks down the value.

Victor DeLovo: If you look at our Clarity or CrowdStrike, you know, they have It's then necessary, but there's a void, and we can fill that void now. You can use us exclusively if you want. That's beautiful, and we'll take it, or we can complement the existing products that are out there to fill a gap, right? There's some products that, you know, they'll detect but they won't prevent, and that's kind of where we step in. You know, and we do zero day attacks on zero day, not oh my god, I gotta go, Patrick. Give me a week or two days or five days or six months to go patch it. So, you know, our biggest issue is we need to get the message out, and we're doing everything we possibly can to talk to as many customers and to evangelize that message.

Of the product why we're different and how we complement other existing products right. You know I think Jim the Bonnie mentioned on the on the webinar.

If you look at like our clarity or crowd strike you know they have it.

It doesn't necessary, but theres, a void and we can fill that void now you can use us exclusively if you want that's beautiful and we'll take it or we can complement the existing products that are out there to fill a gap right. There are some products that you know they'll detect but they wont prevent and that's kind of where we step in you know.

And we do zero day attack on Zero day, not Oh, My God I Gotta go patch it give me a week or two days or five days or six months to go patch. It. So you know I.

Victor DeLovo: Give us a chance to show our product, do a POC, beat it up, and, you know, let us, you know, show you the performance of the product. Thank you, but I think you guys are making great progress considering the product hasn't been out a year yet. When will we start seeing revenue from Asia? Next quarter. And is that the pharmaceutical contract?

Our biggest issue is we need to get the message out and were doing everything we possibly can to talk to as many customers and to evangelize that message give us a chance to show.

Our product do a P O C.

Beat it up and you know what let US show you the performance of the product.

Sergio Heber: Yeah, yeah. And we're hoping that there'll be other, you know, other customers that are falling into place. But this is like too much.

Thank you birthday, I think you guys are making great progress considering the product hasn't been a year yet so when.

When will we start seeing revenue from HSBC.

Next quarter.

And is that the pharmaceutical contract yeah.

Victor DeLovo: Like I told you, you're going to hit a big bang with the pharmaceutical because the way we sold it to him was a one-time deal. And then all the other customers, we want to sell them as a monthly recurring revenue to build up that model. Actually, and will there be upfront fees on the recurring revenue? Um, well, it just depends if they want us to do the installation. Then we're going to charge professional services for that. And then you'll do a monthly fee, and you know, um, per endpoint, and that, you know, will include the maintenance in that monthly fee too.

Yeah, Yeah, well and we're hoping that there'll be other you know other customers yeah that'll fall into place, but there's like two more like I told you you're going to have a big Bang from from the pharmaceutical because the way we sold a term. It is a one time deal and then all the other customers, where we want to sell them as a.

Monthly recurring revenue to build up that that model.

Actually and what will it be upfront fees on the recurring revenue.

Yes.

Well it just depends.

If they want us to do the installed and we're gonna chartered professional services for that and then you'll do a monthly fee and you know per per end point and that you know will include the maintenance in that monthly fee to so they'll get all the latest and greatest updates that we we have.

Victor DeLovo: So they'll get all the latest and greatest updates that we have. All right, guys. Thank you, Gary and Victor, and continue to be successful. Thank you. Have a great day.

Sergio Heber: We have time for two more questions. Your next question is coming from Paul Scolardi, a private investor. How are you doing, gentlemen? An awesome job on the quarter.

Alright, guys. Thank you Gary and Victor.

Okay.

Yes.

Thank you have a great day. Thanks.

Paul Scolardi: You did an awesome job with the press. I want to start off by saying that. Thank you. Can you hear me?

We have time for two more question years. Your next question is coming from Paul Scolari, a private investor.

Paul Scolardi: Yes, I can hear you perfectly. Yeah, I kind of feel bad that you have to deal with these rookie questions from shareholders because it's common knowledge that smaller companies cannot release either the name of larger companies' deals or the amounts for strategic reasons, but I, as a shareholder and most shareholders, appreciate that you're still getting a great flow of press releases once you get these deals to keep the street informed. So I say, great job with the press releases. And also, if the prior caller had listened to that awesome webinar with the ex-Pfizer executive, he said the differentiation of the AZT product out in the marketplace. That webinar was awesome information, so I think, first, some of the shareholders, you need to do a little more research before you waste the executive's time with these questions. Now for a few questions, and I'll be brief because you guys did an awesome job. We're seeing on a macro level in recent weeks headlines coming out about China, Iran, and Russia, that they're going to attack infrastructure. We saw in recent months that water infrastructure in the United States was actually attacked.

How are you doing gentlemen, awesome job on the quarter awesome job with the press releases I wanted to start off by saying that.

Thank you hear me, yes, I can hear you.

Yeah, I kind of feel bad that you have to deal with these lucky questions from shareholders, because it's common knowledge that smaller companies cannot release, either is the name of larger companies deals or the amounts for strategic reasons.

I as a shareholder and most shareholders appreciate that you're still getting a grateful.

A press releases once you get these deals to keep the street informed so I'd say great job with the press releases and also if the prior caller would've listened to that awesome webinar with the ex Pfizer executive.

He said the differentiation of the AZT product out in the marketplace that webinar was awesome information. So I think some of the shareholders you need to do a little more research before you're wasting executive time would be flashing now for your questions and I'll be brief because you guys did an awesome job, we're seeing on a macro level in <unk>.

Recent weeks.

Headlines coming out about China, Iran, Russia.

They're going to attack infrastructure, we saw in recent months the water infrastructure in the United States was actually a cat this seems to be growing as our emerging a scary theme.

Victor DeLovo: This seems to be brewing as an emerging scary theme that, one, doesn't this place even more massive importance and eminence on the AZT product? And are those type of headlines, do you see them as being, A, obviously a selling point, and do you think they're going to raise awareness for these companies to start seeking to protect their OT environment? Um, I would think so. Joe was actually Joe Nergis.

That one doesn't this place even more massive.

Portland.

And imminent on the S E T product and are those type of headlines.

Do you see them as being a is obviously a selling point and do you think theyre going to raise awareness for these companies to start seeking to protect their ot environment.

Yeah.

I would think so.

Paul Scolardi: Every morning, I get the latest and greatest releases of every breach that happens. Um, at like four a.m. he sends them out to me. Um, and we use that, right? I forwarded it to the sales force. We, you know, how people say we don't have a budget for security when they know they have a gap. I have no idea.

Joe actually and it was Joe nervous every morning, I get the latest and greatest releases of every of every breach that happens like for a M. He sends them out to me.

And we use that right I forwarded to you know to the sales force. We you know how people say, we don't have budget for the security when they know they have a gap I have no idea I literally on every sales call. If that comes up on my I just don't believe it because getting hacked is only a matter of time right now.

Victor DeLovo: I literally, on every sales call, if that comes up, I'm like, I just don't believe it because getting hacked is only a matter of time, right? It's not, it's not if you're ever going to, it's some, some way, somehow, somebody will get, you know, some type of hack inside the organization. I don't know if it's three years from now, two years, but it's going to happen in all size companies. So how are people not making security then the number one priority? And the thing is, "Good enough" is not the right answer, right? Because it only takes one, you know, one access point inside the network or the infrastructure, and then they're in.

It's not if you're ever going to its some some way somehow somebody will get you know some type of hack inside the organization I don't know if it's three years from now two years, but it's going to happen of all size companies. So how people are not making security then the number one priority.

And the thing is like good enough is not the right answer right because it only takes you know one.

You know one access point inside the network or the infrastructure and then they're in so you know, saying I'm, 90% protected is is you know is not the right answer for these organizations. So you know how this doesn't just fly off the shelf I I'm not sure because I believe we're doing a really good job separating ourself.

Paul Scolardi: So, you know, saying I'm 90% protected is, you know, is not the right answer for these organizations. So, you know, how this doesn't just fly off the shelf. I'm not sure because I believe we're doing a really good job separating ourselves from the rest of the group out there. But you know, it's still CSPI who we are, and like I said, we're trying to do the shows. We're trying to do the webinars. We're trying to get in front of that many customers. We're trying to bring on resellers and then let the product speak for itself. You know, that's what we try to position ourselves as. You know, you can listen to us all day long.

From the rest of the the group out there, but you know it's it's still C. S. P. I, who are we and you know what we're trying to like I said, we're trying to do the shows we're trying to do the Webinars were trying to get in front of as many customers. We're trying to bring on resellers and then let the product speak for itself. You know that's that's what we've tried to position.

And you know you can listen to US all day long, let us do a P. O C. Let's let's run the product in your environment and what the product talk speak for itself and you know we've never thought bad feedback from any customer that's taken the time to look at it.

Paul Scolardi: Let us do a POC Let's run the product in your environment and let the product talk, you know, speak for itself. And you know, we've never gotten bad feedback from any customer that takes the time to look at it. Right. No, 100%. And in many ways, according to the damage of the hack, the product pays for itself if you think about how much it's going to cost to get hacked.

Right no 100% in many ways like according to the <unk>.

Image of the half the product pays for itself. If you think about how much it's going to cost you get hacked and I.

Paul Scolardi: And I think really what we need is to get you on CNBC or Fox Business News when they have all these scary headlines that say AZT has the solution. And hopefully, maybe we'll see that soon. Next, we talked about mandates. And we know there's an SEC reporting mandate. I think Australia has a mandate, too.

Really what we needed to get U R E N B C or some of our Fox business.

Business news when they have all these scary headlines to say AZT has the solution and hopefully maybe we'll see that soon.

That's like we talk about mandates and we know there's SEC reporting mandate I think Australia has a mandate.

Paul Scolardi: Does the U.S. and other countries have these growing mandates to have this OT protection? And is that going to – you see something that's going to drive more awareness to AZT, the mandates themselves? Are you seeing that? Are people saying, hey, we got to get this in place, whether it be the U.S. or other countries?

And other countries have these growing mandates to have this O T protection.

And is that kind of.

Something that's going to drive.

More awareness to easy T. The mandates themselves are you seeing that are people, saying, hey, we got to get this in place whether it be the U S or other countries.

Victor DeLovo: People are talking about it; if they're not, we're bringing it up, right? You know, like I mentioned earlier, we're using that as one of our key selling points. Like, it won't be a choice anymore, right?

People were talking about it if they are if they're not we're bringing it up right. You know like I had mentioned earlier, we're using that as one of our key selling points like it it's not going to be a choice any longer right youre going to have to do this.

Victor DeLovo: You're going to have to do this. And, you know, it all becomes about just getting time in front of the customers. Once you have some time with them, you can, you know, peel back the cover, and you can see where their needs are.

And you know it's it all becomes about just getting getting time in front of the customers you know what they want you to have some time with them you can peel back the cover and you can see where their their need is and then it's our job just to sell it to them in and show them the value, but yeah. I believe you know the man.

Paul Scolardi: And then it's our job just to sell it to them and show them the value. But yeah, I believe, you know, the mandates. They can't hurt, right? They can only help.

They can't hurt right there I can only help right.

Victor DeLovo: Yep. Okay. And also, we talked about last call about cybersecurity company partners, potentially, and talking to them, and we know that there is a press release showing that NVIDIA is a private partner. Now, I know companies like NVIDIA are very secretive, and you might not be able to tell me anything about it, but it is public knowledge that they are a partner. Are they partnering on the AZT side, and are you still in talks with other big cybersecurity players to potentially sell this for you since it doesn't compete, and it could just be an add-on product to like a Palo Alto's off? Um, yes, and yes, we are still talking to him video heavily weekly.

Okay. And then also we talked about last call about cyber security company partners potentially and talking to them and we know that there.

There is a press release showing the Nvidia is a card partner no I know companies like Nvidia or very secretive.

And you might not be able to tell me anything about it but it is public and that they are a partner are they partnering on the T side and are you still in talks with other big cyber security players to potentially.

Sal this for you since it doesn't compete and it could just be an add on product to like a palo altos offering.

Yes, and yes, we are still talking to them video heavily weekly and we are still talking to other major players out there to partner with them to make our offering as you know.

Paul Scolardi: And we are still talking to other, um, major players out there to partner with them, um, to make our, our offering is, you know, selling as a, a bundle product. Awesome. That's great.

As a.

Selling as a bundled product.

Awesome.

Great. Thank you for that I have lastly.

Paul Scolardi: And lastly, my last quick point is you guys are doing an amazing job of executing, both you and Gary and the whole company. We want that as shareholders. But it would be nice, when CNBC and everybody's talking about these cyber threats for operational technology, if we could get you on CNBC. So have you thought about hiring like an investor relations or public relations firm? Since one of our biggest clients, this is like the group, I feel like the Super Bowl just happened. SCSPI is at the Super Bowl, but nobody knows they're playing in it yet.

My last quick point is you guys are doing an amazing job on executing both you and Gary and the whole company, we want that as shareholders.

Would be nice when CNBC and everybody's talking about the cyber threats for operational technology.

We could get you on CNBC. So have you thought about hiring like Investor Relations public relations firm since one of our biggest this is like the group, but I feel like the Super Bowl just happened.

<unk> got the Super Bowl, but nobody knows they're playing in it yet so have you thought about hiring and IR PR firm. So while you guys are busy executing somebody who can help get the story out for from a marketing shareholder perspective, which is also not the most important thing execution is more important but it's part of the equation yep.

Paul Scolardi: So have you thought about hiring an IR PR firm? So while you guys are busy executing, somebody can help get this story out from a marketing shareholder perspective, which is also, it's not the most important thing. Execution is more important, but it's part of the equation.

Victor DeLovo: Yeah, we are. We are talking about it, and uh...where there's a game plan, so. Okay, no, that's good.

We are we are we are talking about it and.

Where there's a there's a game plan. So okay. Okay. No that's fine as long as you guys are it's on your plate and you're thinking about it.

Paul Scolardi: As long as it's on your plate and you're thinking about it, I just want to say, because I was more intense last quarter, you guys have done an awesome job. Appreciate the press releases, keep them flowing, and to me, this is like a generational opportunity. And with the headlines, the scary macro headlines we're seeing, this is a much needed product for so many companies and governments. So, thank you, guys, and great job. Thank you, Paul.

Just wanted to say cause I was more intense last quarter you guys have done an awesome job on appreciate the press releases keep them flowing and to me. This is like a generational opportunity.

And with the headlines the scary macro headlines we're seeing this is Mike.

Much needed product for so many companies and government. So thank you guys and great job.

Victor DeLovo: Have a good day. Our final question for today is coming from John Crotty, a private investor. Hey, good morning guys. How are you doing?

Thank you Paul I have a good day.

Right.

Your final question for today is coming from John Karate, a private investor.

Hey, good morning, guys How're you doing good morning, good yeah.

John Crotty: Good morning. I just want to say congratulations on a great quarter. You guys actually accomplished everything you said you were going to do in the last quarter. Some of it may not have been as timely, like the ink drawing, but you did it.

Just wanted to say I want to say congratulations on a great quarter, you guys actually accomplished everything you said youre going to do the last quarter.

Of it not has been as timely like being crime, but you did it so that's actually a big kudos to see management actually do what they say, they're going to do and the other thing is there's a great information on the D. C area every retail investments should listen to this most importantly, when Joe mentioned, a $1 4 billion dollar cost to Merck I mean, she doesn't have amazing numbers do you think.

John Crotty: So, that's actually a big kudos to see management actually do what they say they're going to do. And the other thing is there's great information on this, CC, and every retail investor should listen to this. Most importantly, when Joe mentioned the $1.4 billion cost to Merck, I mean, those are amazing numbers.

John Crotty: You'd think everyone would realize when their insurance company won't cover it, they should be calling you guys. I mean, but anyway, here are my questions. So, we know and I anticipate your phone to be ringing off the hook, but I know you have a lot of resellers, like we saw you guys with a deal down in Florida and an existing MSP customer. Any feedback to many of your resellers, especially the large one in Australia, and they do have a mandate as well?

Everyone would realize when their insurance company won't cover it and they should be calling you guys I mean, but anyway. He was my question.

So we know as I anticipate your iPhone to be ringing off the hook, but I know you have a lot of resellers like we saw you guys with you a deal down in Florida, and he preexisting MSP customer any feedback from any of your resellers, especially the large one and.

Australia, and they do have them, indeed, as well and just about the other like 50 smaller partners you have regarding these large ones or any feedback that you're assisting them I'll be needing any assistance.

Victor DeLovo: And just about the other 50 smaller partners you have regarding these large ones, any feedback? Are you assisting them? Are they needing any assistance?

Victor DeLovo: Um, well, there are two separations, right? So, you know, the reseller, the TS division, is the one that sold the MSP contract, right? So that's all part of the CSPI umbrella.

Yeah.

Well this two separations right. So you know the reseller. The T. S Division is the one that sold the MSP contract right. So that's all part of the E. S. P. I umbrella and when you have all the other resellers that we sign under the area.

Victor DeLovo: And then you have all the other resellers that we signed under the ARIA, um, division, the HPP division, so those resellers are the ones that we're targeting with AZT. And those are the new contracts that we signed with the large reseller. And, you know, it's about training them, doing marketing events with them. So those are the things that we do with those types of resellers. But there's, you know, it's really no one who's really put two and two together or asked us any questions about the MSP contract or anything else we won. You know, that's why we separated the two. So all the information that we're dealing with with the IRS is kept separate, you know, so those resellers feel comfortable, you know, that all their information is private.

Division D. H P. P division. So those resellers are the ones that we're tagging with a Z T.

And those are the new contracts that we signed with a large reseller and you know it's about training them doing marketing events with them. So those are the things that we're doing with those types of resellers, but there's you know it's it's really no one's put you know really put two and two together or ask us any questions about the MSP contract or anything else.

We won you know that's why we separated the two so all all the information that we're dealing with with the IRS stay separate you know so those resellers feel comfortable.

You know that they're all their information is is private.

John Crotty: Mm-hmm. Okay, so you're doing that on behalf of the pre-existing partnership side of the deal. What about like a logic tech that's been strictly an AZT reseller over in Australia, and again, they have a mandate. Just wondering what they're saying, and they may be equivalent to you. Yeah, this, you know. He deals with a lot of government entities out there in Australia. So, as you know, things work slow. But you know, it's about getting in front of them with the POCs, and then he does the rest of the work. We educate him, we trade in him. But he has a lab, everything that he needs to be successful. He has, and now it's about him just working the relationships and the opportunities that he finds out in Australia. Okay, and my last question has to do Are they more infrastructure projects, like electrical, oil, and gas?

Uh-huh, Okay, so that that youre doing that on behalf of the pre existing partnership side of the deal what about like the Logitech that's been strictly in a Z T.

Reseller woven Australia and again they have a mandate just wondering.

What they're seeing and.

The same may be equivalent to you.

Yeah. So you know he's come in he deals with a lot of government.

Entities out there in Australia. So as you know things works slow, but you know it's about getting in front of them with a P. O season than he does the rest of the work you know, we educated or we trade them or he has a lab for everything that he needs to be successful. He he has and now it's about him just working their relationships and in the opportunities that he that he finds out in Australia.

Eylea.

Okay and my last question has to do with the type of product a company mix, you're seeing with elites are they more government are they more infrastructure like electrical oil and gas.

Victor DeLovo: Or are they more like manufacturing, like you just recently won, or higher-ready? Oil and gas is definitely a segment that we're talking to quite a few people about. The pharmaceutical area, medical, those are probably the three top ones that we're talking to right now.

Or are they more like manufacturing like you. Just recently won are high already.

Oil and gas is definitely a segment that we're talking to quite a few people the pharmacy girl area medical.

You know those are probably the three top ones that where we're talking to right now.

John Crotty: Okay, fair enough. Okay. No, that that was it. Just kind of get a good mix.

Okay Fair.

Fair enough. Okay. No that was it just trying to get a good mix hi, guys. Thank you so much and look forward to next quarter and attending the meeting as well.

Victor DeLovo: All right, guys. Thank you so much, and I look forward to next quarter and attending the meeting as well. Thank you. Thank you. We have reached the end of the question and answer session, and I will now turn the call over to Victor for closing remarks. Thank you. As always, I want to thank our shareholders for your continued interest and support. We are entering a period of increased activity, and we look forward to sharing our progress on the next fiscal 2024 second quarter in May.

Yeah. Thanks.

We have reached the end of the question and answer session and I will now turn the call over to Victor for closing remarks.

Thank you as always I want to thank our shareholders for your continued interest and support we are entering a period if increase activity and we look forward to sharing our progress on the next fiscal 'twenty 'twenty four second quarter in May until then be well and stay safe.

Victor DeLovo: Until then, be well and stay safe. Thank you. This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation. Bye.

Thank you.

This concludes today's conference and you may disconnect. Your lines at this time. Thank you for your participation.