Q4 2023 Panbela Therapeutics Inc Earnings Call

Speaker Change: [music].

Good afternoon, ladies and gentlemen, and thank you for your patience Your conference will begin shortly.

Operator: Good afternoon, ladies and gentlemen, and thank you for your patience. Your conference will begin shortly. Once again, thank you for your patience. The conference will begin shortly. [inaudible] Good afternoon,

Once again, thank you for your patients the conference will begin shortly.

[music].

Operator: Welcome to White Point's fourth quarter and full year 2023 earnings conference call. My name is Matthew, and I will be your operator for today's call. Joining us for today's presentation are White Point's President and CEO, Jin Kang, Chief Revenue Officer, Jason Holloway, and Chief Financial Officer, Robert George. Following their remarks, we will open up the call for questions from White Point's publishing analysts and major investors. If your questions were not taken today and you'd like additional information, please contact White Point's Investor Relations team at wyy.gateway-grp.com. Before we begin the call, I would like to provide White Point's Safe Harbor Statement that includes cautions regarding forward-looking statements made during this call. The matters discussed in this conference call may include forward-looking statements regarding future events and future performance of WidePoint Corporation that involve risks and uncertainties that could cause actual results to differ materially from those anticipated. These risks and uncertainties are described in the company's Form 10-K, which is filed with the Securities and Exchange Commission.

Speaker Change: Good afternoon, welcome to wide points fourth quarter and full year 2023 earnings conference call.

Jin Kang: Finally, I'd like to remind everyone that this call will be made available for replay via a link in the Investor Relations section of the company's website at www.widepoint.com. Now, I'd like to turn the call over to White Point's President and CEO, Mr. Jin Kang. Sir, please proceed.

Matthew: My name is Matthew and I'll be your operator for today's call.

Matthew: Joining us for today's presentation are white points, President and CEO Jin Kang Chief revenue Officer, Jason Holloway, and Chief Financial Officer, Robert George.

Matthew: Following their remarks, we will open up the call for questions from White points publishing analyst and major investors.

Jin Kang: Thank you, operator, and good afternoon everyone. Thank you for joining us today to review our financial results for the fourth quarter and full year ended December 31, 2023. This past year was a pivotal one for WidePoint, marked by successful execution of our financial and operational plans and initiatives. We closed out 2023 on a strong note pertaining to both our finances and operations, with approximately $106 million in revenue, positioning us at the higher end of our full year 2023 guidance. Simultaneously, we achieved the 26th consecutive quarter of positive adjusted EBITDA and demonstrated sequential quarter over quarter growth in 2023. Additionally, and more notably, we concluded the fourth quarter with positive free cash flow, a trend that we anticipate maintaining throughout 2024 and beyond, and something that is vital for the company, especially within this high interest rate environment.

Matthew: If your questions were not taken today and you would like additional information. Please contact wide points Investor relations team at W. Y Y at Gateway Dash G. R. P dot com.

Matthew: Before we begin the call I would like to provide white point Safe Harbor statement that includes cautions regarding forward looking statements made during this call.

Matthew: The matters discussed in this conference call May include forward looking statements regarding the future events and future performance of White point Corporation that involve risks and uncertainties that could cause actual results to differ materially from those anticipated.

Matthew: These risks and uncertainties are described in the company's Form 10-K filed with the Securities and Exchange Commission.

Matthew: Finally, I'd like to remind everyone that this call will be made available for replay via a link in the Investor Relations section of the company's website at Www Dot wide point Dot com.

Matthew: Now I would like to turn the call over to wide points, President and CEO. Mr. Jin Kang Sir Please proceed.

Jin Kang: This momentum we anticipate carrying into 2024 is backed by multiple initiatives and developments made throughout fiscal year 2023. First, robust demand for our solutions and services remains evident, with the fourth quarter alone witnessing more than 30 contractual actions amounting to more than $70 million in contract value. These wins include new awards, contract renewals, expansions, and extensions in all of our solution lines. As you know from the news headlines, the federal government budget battle is and will be an ongoing issue.

Jin Kang: Thank you operator, and good afternoon, everyone. Thank you for joining us today to review our financial results for the fourth quarter and full year ended December 31 2023.

Jin Kang: This past year was a pivotal one for wide point mark by successful execution of our financial and operational plans and initiatives. We closed out 2023 on a strong note pertaining to both our financials and operations with approximately $106 million in revenue.

Jin Kang: As issuing us at the higher end of our full year 2023 guidance.

Jin Kang: However, we continue to successfully mitigate this risk by proactively engaging with our government counterparts to renew contracts early and ensure that they are fully funded. Currently, all affected contracts have been successfully awarded and carried over into the new year. With this, a significant catalyst for anticipated growth in 2024 lies in our substantial contract backlog totaling $359 million as of December 31, 2023. Furthermore, WidePoint continues to solidify its position as the most secure, premier choice for trusted mobility management solutions, evidenced by our strong contract renewal and customer retention rates of over 90%.

Jin Kang: Simultaneously, we achieved 26th consecutive quarter of positive adjusted EBITDA and demonstrate a sequential quarter over quarter growth in 2023.

Jin Kang: Additionally, and more notably we concluded the fourth quarter free cash flow positive a trend that we anticipate maintaining throughout 2024 and beyond and.

Jin Kang: And something that is vital for the company, especially within this high interest rate environment.

This momentum we anticipate carrying into 2024 is backed by multiple initiatives and developments made throughout fiscal year 2023.

Jin Kang: First a robust demand for our solutions and services remained evident with the fourth quarter alone witnessing more than 30 contractual actions amounted to more than $70 million in contract value.

Jin Kang: With these initiatives driving our momentum, we confidently forecast double-digit percentage growth in the teens for top-line revenues and double-digit percentage growth in the high teens for managed services revenues, in addition to achieving positive free cash flow for the full year 2024. Another factor driving our growth is the recent completion of the majority of our capital investments made in 2023. With this, we anticipate having minimal capital expenditures for 2024, strengthening our balance sheet, enabling us to concentrate fully on various operational growth initiatives. More specifically, I'd like to emphasize two previous investments that are in their final phases, nearing completion. Last earnings call, we mentioned our Intelligent Technology Management System, or ITMS, was in the FedRAMP in-process status. We continue to see positive news on this front throughout the quarter, with ITMS Now nearing its final FedRAMP authorized designation. We anticipate certification in the first half of 2024. However, the timelines may change based on the general services administration's workload for the FedRAMP process.

Jin Kang: These wins include New awards contract renewals expansions and extensions and all of our solution lines. As you know from the news headlines the federal government budget Battle is and will be an ongoing issue. However, we continued to successfully mitigate this risk by proactively engaging with our government counterparts.

Jin Kang: To renew contracts early and ensuring that they are fully funded currently all affected contracts are successfully awarded and carried over into the new year.

Jin Kang: With this a significant catalyst for our anticipated growth in 2024 lives and our substantial contract backlog totaling $359 million as of December 31, 2023. Furthermore, why point continues to solidify its position as the most secure premier choice for trusted mobility.

Jin Kang: Management solutions, evidenced by our strong contract renewal and customer retention rates of over 90% with these initiatives driving our momentum we confidently forecast double digit percentage growth in the teens for topline revenues.

Jin Kang: Double digit percentage growth in the high teens for managed services revenues. In addition to achieving positive free cash flow for the full year 2024.

Jin Kang: The good news is that we already have all the necessary authorization to operate or ATOs from our current customer agency, which attests to our strong cyber security posture that places us ahead of our competition. As a reminder, attaining full FedRAMP certification will uniquely position our ITMS platform and grant White Point a substantial competitive edge in competing for new business with the federal government and large enterprises. This certification indicates that our solutions align with federal cybersecurity standards for protecting our customers' data.

Jin Kang: Another factor driving our growth is the recent completion of the majority of our capital investments made in 2023.

Jin Kang: With this we anticipate having minimal capital expenditures for 2024.

Jin Kang: Strengthening our balance sheet, enabling us to concentrate fully on various operational growth initiatives.

Jin Kang: More specifically I would like to emphasize two previous investments that are in their final phases nearing completion.

Jin Kang: Last earnings call, we mentioned, our intelligent technology management system or Tms was in the fed ramp in process status. We continue to see positive news on this front throughout the quarter.

Jin Kang: Moreover, it will showcase the robust security levels offered by WidePoint solutions to both existing and prospective customers, particularly in commercial sectors and industries where data and system security are paramount. We look forward to announcing the completion of our FedRAMP process and anticipate this to be a significant factor to continue differentiating our solutions and serve as a catalyst to fuel new wins in the near future. Another investment near completion is in our delivery system, more specifically, enhancements to our continuity of operations site, or COOP, which we also anticipate completion by the first half of 2024. These COOP site enhancements will further differentiate us from our competitors and provide additional resiliency to our delivery. Our enhanced COOP site will have automatic failover capabilities and data replication such that if there is a system outage of our primary operation site, the secondary site will immediately come online to greatly reduce the system recovery time, ensuring that we meet and exceed all of our service level agreements with our customers.

Jin Kang: With <unk> now nearing its final fed ramp authorized designation, we anticipate certification in the first half of 2024.

Jin Kang: However, the timelines may change based on general services administrations workload for fed ramp processing.

Jin Kang: The good news is that we already have all the necessary authorization to operate or a T. OS from our current customer agencies, which attests to our strong cyber security posture that places US ahead of our competition.

Jin Kang: As a reminder, attaining full fed ramp certification will uniquely position, our I T. M. S platform and grant wide point, a substantial competitive edge and competing for new business with the federal government and large enterprises. This certification indicates that our solutions are aligned with federal cyber security standards.

Jin Kang: In addition to these investments, we are excited by the potential for artificial intelligence to streamline our everyday business operations, and we are developing a strategy aimed at leveraging AI. The potential to improve our customer service experience by reducing response time, increasing the accuracy of those responses, as well as increasing our overall capacity, are all being explored. Furthermore, there's potential to enhance our IT as a service by integrating AI to detect cybersecurity vulnerabilities and enhance behavior-based security measures. Additionally, there are other areas of our business that could benefit from the implementation of AI, such as software development, responding to proposals, invoice audits, and leveraging our knowledge base to serve our customers' requirements better. We are in the process of sifting out the noise from the real AI capabilities.

Jin Kang: We're protecting our customers' data. Moreover, it will showcase the robust security levels offer by wide point solutions to both existing and prospective customers, particularly in commercial sectors and industries, where data and system security are paramount.

Jin Kang: We look forward to announcing the completion of our fed ramp process and anticipate this to be a significant factor to continue differentiating our solutions and serve as a catalyst to fuel new wins in the near future.

Jin Kang: Another investment near completion is in our delivery system more specifically enhancements to our continuity of operations site or coupe.

Jin Kang: Which we also anticipate completion by the first half of 2020 for these.

Jin Kang: We will share more on this front as we evolve our strategy to meet our business needs. With our investments out of the way, I'd like to highlight just a few of our contract wins achieved recently that we believe will have the potential to grow into substantial revenue generators over the coming years. At the federal level, we saw roughly $60 million in governmental contracts won in the fourth quarter alone.

Jin Kang: <unk> Coupe site enhancements will further differentiate us from our competitors and provide additional resiliency to our delivery systems.

Jin Kang: Our enhanced coop site will have automatic fail over our capabilities and data replication such that if there is a system outage of our primary operations side. The secondary site will immediately come online to greatly reduce the system recovery time, ensuring that we meet and exceed all of our service level agreements.

Jin Kang: While we are bound by non-disclosure agreements and unable to disclose specific government clients, Jason will talk about one of our recent federal contract wins, which has the potential to grow into one of our largest federal contracts, second only to our contract with the U.S. Department of Homeland Security. On the commercial side, we have won contracts with a nationwide professional services firm and a major Florida attraction and research center, both of which have the potential to grow into material IT as a service customers over the next 12 months. On the sales and marketing side, our strategy to expand our market presence has proved to be fruitful, especially in a year with challenging macroeconomic headwinds affecting the whole market. Jason will dive deeper into this topic shortly, but we are proud to say that these efforts contributed significantly to WidePoint's success this past fiscal year.

Jin Kang: With our customers.

Jin Kang: In addition to these investments we are excited by the potential for artificial intelligence to streamline or everyday business operations.

Jin Kang: And we are developing a strategy aimed at leveraging AI.

Jin Kang: Potential to improve our customer service experience by reducing response time, increasing the accuracy of those responses as well as increasing our overall capacity. We're all being explored. Furthermore, there is potential to enhance our I T. As a service by integrating AI to detect cyber security vulnerabilities.

Jin Kang: And enhanced behavior based security measures.

Jin Kang: There are other areas of our business that could benefit from the implementation of AI, such as software development responding to proposals invoice audits and leveraging our knowledge base to serve our customers' requirements better we are in the process of shifting out the noise from the real AI capabilities, we will share.

Jin Kang: Lastly, the sales of WidePoint's business solutions have maintained their momentum, playing a significant role in the company's growth and reach. YPoint has shown year-over-year growth, and we anticipate this positive trajectory to persist in 2024 as we continue to grow our sales pipeline. The potential for cross-selling and up-selling within White Point's comprehensive suite of trusted mobility management solutions creates further avenues for business expansion and advancement.

Jin Kang: More on this front as we evolve our strategy to meet our business needs.

Jin Kang: With our investments out of the way I like to highlight just a few of our contract wins achieved recently that we believe will have the potential to grow into substantial revenue generators over the coming years.

Jin Kang: At the federal level, we saw roughly 60 million and governmental contracts one in the fourth quarter alone.

Jason: These business solutions remain pivotal in our sustained long-term growth and in fortifying our competitive advantage. I will now hand the mic over to Jason, who will dive into the progress made on the sales and marketing front.

Jin Kang: While we are bound by Nondisclosure agreements and unable to disclose specific government clients, Jason will talk to one of our recent federal contract wins, which has the potential to grow into one of our largest federal contracts second only to our contract with the U S Department of Homeland Security.

Jason: Thanks, Jen, and good afternoon, everyone. As Jen stated earlier, our concentrated efforts in capturing additional deals within the sales and marketing front have contributed significantly to White Point's performance this past year. This past quarter alone, White Point was awarded over $70 million in contract wins, approximately $65 million of which were considered new business wins. This showcases our commitment to continuously drive new business into White Point and the trust our current and new customers have for our solution. Recently, we closed a deal with a commercial entity to provide a full range of managed telecom solutions on behalf of its U.S. government and customers. This deal is approximately $20 million with a three-year base period and two one-year option periods.

Jin Kang: On the commercial side, we have one contract with a nationwide professional services firm and a major Florida attraction and research center, both of which have the potential to grow into a material.

Jin Kang: As a service customer over the next 12 months.

Jin Kang: On the sales and marketing side, our strategy to expand market presence has proved to be fruitful, especially in a year with challenging macroeconomic headwinds affecting the whole market, Jason will dive deeper into this topic shortly but we are proud to say that these efforts contributed significantly to <unk> success.

Jin Kang: This past fiscal year lastly, the sales of why points business solutions have maintained their momentum playing a significant role in the company's growth and reach why point has shown year over year growth and we anticipate this positive trajectory to persist in 2024, as we continued to grow our sales pipeline.

Jason: As Jen mentioned, although we cannot disclose this client's name, we are proud to state this contract could become one of our most significant. Additional information can be found in our SEC Form 8K, filed January 2024; we remain committed to advancing these sales and marketing initiatives into 2024. The strong results this past year have prompted us to develop a new internal plan to allocate additional resources and budget towards enhancing our staff and capabilities to secure additional high-margin contracts like the one mentioned just now. Specifically, we look to add an additional senior-level commercial sales resource, an established federal business development resource with a proven track record within the D.C. area, and a vendor partner manager for the expansion of strategic partners.

Jin Kang: <unk>.

Jin Kang: The potential for cross selling and Upselling within light points comprehensive suite of trusted mobility management solutions creates further avenues for business expansion and advancement. These business solutions remain pivotal and our sustained long term growth and and fortifying our competitive advantage.

Jin Kang: I'll now hand, the mic over to Jason who will dive into the progress made on the sales and marketing front Jason.

Jason Holloway: Thanks, Jen and good afternoon, everyone as Jim stated earlier, our concentrated efforts on capturing additional deals within the sales and marketing brought has contributed significantly to wide points performance. This past year.

Jason Holloway: This past quarter alone White point was awarded over 70 million in contract win.

Jason Holloway: Approximately 65 million of which were considered new business win there.

Jason: With ample funding and guidance from new senior staff members, we are confident in carrying this momentum into fiscal year 2024 to garner more contracts. On the K-12 side, we continue to accelerate our market penetration. We recently engaged with an expert within the K-12 sector to facilitate our partnership program aimed at integrating White Point's IAM solutions into existing offerings for numerous sector entities.

Jason Holloway: This showcases our commitment to continuously drive new business into White point, and the trust, our current and new customers have for our solution.

Recently, we closed the deal with a commercial entity to provide a full range of managed telecom solutions on behalf of its U S government and customer this.

Jason Holloway: This deal is approximately $20 million with a three year base period, and two one year option periods.

Jason Holloway: As Jen mentioned, although we cannot disclose the client's name we are proud to state that contract can become one of our most significant.

Jason: I also want to note that our Identity and Access Management Pipeline is equivalent to our Managed Mobility Pipeline in terms of the number of opportunities. As Jen mentioned earlier, we have a robust contract backlog of $359 million in value. A large part of this backlog and success seen this year can be attributed to our flagship contract with DHS, the Cellular Wireless Management Services 2.0 contract. Based on our current contract run rate, we are nearing the contract ceiling of $500 million.

Jason Holloway: Additional information can be found in our SEC form 8-K filed January 2024.

Jason Holloway: We remain committed to advancing these sales and marketing initiatives into 2024.

Jason Holloway: The strong results. This past year have prompted us to develop a new internal plan to allocate additional resources and budget towards enhancing our staff and capabilities to secure additional high margin contracts like the one mentioned just now.

Jason Holloway: So typically we look to add an additional senior level commercial sales resource.

Jason: As such, we are working closely with DHS to review options for continuing to perform under this contract. With the additional resources and staff, we will increase our investments in sales and marketing efforts as we look to win additional impactful contracts like this for White Point's financial growth. Lastly, I wanted to recognize the IT Authorities team. As you know, we acquired the IT authorities in 2021.

Jason Holloway: And established federal business development resource with a proven track record within the D C area.

Jason Holloway: A vendor partner manager for the expansion of strategic partners with.

Jason Holloway: With ample funding and guidance from new senior staff members. We are confident in carrying this momentum into fiscal year 2024 to garner more contracts.

Jason Holloway: On the K through 12 side, we continue to accelerate our market penetration.

Jason Holloway: We recently engaged with an expert within the K through 12 sector to facilitate our partnership program aimed at integrating white points I E M solutions into existing offerings for numerous sector entities.

Jason: Even though the integration took a little longer than expected due to challenges faced during the COVID pandemic and external macro headwinds, the team has been closing deals at a pretty rapid pace. They have been working extremely hard, and we are excited about their tremendous momentum in 2024. With that, I will hand the call over to Bob. Thank you, Jason.

Jason Holloway: I also want to note that our identity and access management pipeline is equivalent to our managed mobility pipeline in terms of the number of opportunities.

Jason Holloway: As Jan mentioned earlier, we have a robust contract backlog of 359 billion at value.

Jason Holloway: A large part of this backlog and success seen this year can be attributed to our flagship contract with DHS.

Bob George: And thanks to everyone for joining us today. I'd also like to express my gratitude to the entire WidePoint team for how they executed in 2023, a year where WidePoint saw significant improvements in both top line revenue and free cash. Now, I'm pleased to share the details of our fourth quarter and full year 2023 financial results. Revenues for the quarter were $28.3 million, up 21% from the same quarter last year; revenues for the year were $106 million, an increase of 13% from last year. Now, I'll provide a further breakdown of our fourth quarter and full year revenues. I'm pleased to say that period over period we saw increases across all our revenue categories. Our carrier services revenue for the quarter was $15.7 million, an increase of 14% from the same quarter last year.

Jason Holloway: Cellular wireless management services to the auto contract.

Jason Holloway: Based on our current contract run rate, we are nearing the contract ceiling of $500 million.

As such we are working closely with DHS to review options for continuing to perform under this contract.

Jason Holloway: With the additional resources and staff.

Jason Holloway: We'll increase our investments in the sales and marketing efforts as we look to win additional impactful contracts like this for white point financial growth.

Jason Holloway: Lastly, I wanted to recognize the I T authorities team.

Jason Holloway: As you know we acquired <unk> in 2021.

Jason Holloway: Even though the integration took a little longer than expected due to challenges faced during the COVID-19 pandemic and external macro headwinds.

Jason Holloway: The team has been closing deals at a pretty rapid pace.

Jason Holloway: They had been working extremely hard and we are excited about their tremendous momentum in 2024 with that I will hand, the call over to Bob.

Bob: Thank you, Jason and thanks to everyone for joining US today I'd also like to express my gratitude to the entire wide team and how they executed in 2023, a year where wide point saw significant improvements in both top line revenue and free cash flow.

Bob George: Our carrier services revenue for the full year was $58.3 million, an increase of 9% from last year. The increase is due to growth in contracting activity with our federal customers, where we pay carrier invoices on their behalf for the telecommunications devices that we manage. While a pass-through, paying carrier invoices is a federal customer requirement in an area where we differentiate our services and provide measurable savings to our customers.

Bob: Now I'm pleased to share the details of our fourth quarter and full year 2023 financial results.

Bob: Revenues for the quarter were $28 3 million up 21% from the same quarter last year.

Bob: Revenues for the year were $106 million, an increase of 13% from last year.

Bob: Now I'll provide a further breakdown of our fourth quarter and full year revenues Im pleased to say that period over period, we saw increases across all our revenue categories.

Bob George: Our managed and billable services revenues for the quarter were $4.4 million, a 23% increase from the same quarter last year. Our managed and billable services revenues for the year were $31 million, a 10% increase from last year. The increase in the fourth quarter and full year was related to increased professional services being utilized by our TLM customers and new projects in our Identity and Access Management. Our reselling and other services revenues for the fourth quarter were $8.1 million, an increase of 37% from the same quarter last year. Our reselling and other services revenues for the year were 16.8 million, a 33% increase from last year. The increase in both the quarter and full year was a result of selling third-party software for recording and storing text messages to our federal customers, which is now required under an expansion of the Federal Records Act, and also selling an identity management solution to a new federal customer.

Bob: Our carrier services revenue for the quarter was $15 7 million an increase of 14% from the same quarter last year, our carrier services revenue for the full year was $58 3 million an increase of 9% from last year.

Bob: The increase was due to growth in contracting activity with our federal customers, where we pay carrier invoices on their behalf for the telecommunications devices that we manage well pass through paying carrier invoice as a federal customer requirement and an area, where we differentiate our services and provide measurable savings to our customers.

Bob: Our managed and billable services revenues for the quarter were $4 4, million% to 23% increase from the same quarter last year.

Bob: Our managed and billable services revenue for the year were $31 million, a 10% increase from last year. The increase in fourth quarter and full year were related to increased professional services being utilized by our tailwind customers and new projects in our dirty and access management customers.

Bob: Ah reselling and other services revenues for the fourth quarter were $8 1 million, an increase of 37% from the same quarter last year our.

Bob: Ah reselling and other services revenues for the year was $15 8, million% to 33% increase from last year.

Bob George: I do want to highlight that reselling and other services are transactional in nature, and the amount and timing of revenue could vary significantly from quarter to quarter. Gross profit for the fourth quarter was $4 million, or 14% of revenues, compared to $3.6 million, or 15% of revenues in 2022. Gross profit for the year was $15.6 million, or 15% of revenues, compared to $14.6 million and 15% of revenues last year. In the fourth quarter, the more significant metric of gross profit percentage excluding carrier services was 32%, compared to 37% in the same period last year. For the full year, the gross profit percentage excluding carrier services was 33% compared to 36% in the same period last year.

Bob: The increase in both the quarter and full year was a result of selling third party software for recording and storing text messages to our federal customers, which is now required under an expansion of the Federal Records Act.

Bob: And also selling in a daily management solution to a new federal customer.

Bob: I do want to highlight the reselling and other services are transactional in nature, and the amount and timing of revenue could vary significantly from quarter to quarter.

Gross profit in the fourth quarter was $4 million or 14% of revenues compared to $3 6 million or 15% of revenues in 2022.

Bob: Profit for the year was $15 6 million or 15% of revenue compared to $14 6 million and 15% of revenues last year.

Bob: In the fourth quarter, the more significant metric of gross profit percentage, excluding carrier services was 32% compared to 37% in the same period last year.

Bob: Full year gross profit percentage, excluding carrier services was 33% compared to 36% in the same period last year.

Bob George: The lower gross margin percentage excluding carrier services in both the fourth quarter and the year relates to increased depreciation and amortization related to our delivery platforms that have substantially reached completion and are beginning to be amortized, as well as the previous noted increases in reselling and other services, which have a lower gross margin profile. Accordingly, our gross margin percentage will vary from period to period based on our revenues. In the fourth quarter, general administrative expenses were $4.2 million, or 15% of revenue, compared to $3.6 million, or 15% of revenue, in the same period of 2022. Much of the dollar increase relates to an increase in non-cash share-based compensation expense compared to the same period last year.

Bob: The lower gross margin percentage, excluding carrier services in both the fourth quarter and the year relate to increased depreciation and amortization related to our delivery platforms that have substantially reached completion and are beginning to be amortized and the previous noted increases and reselling and other services, which have a lower gross margin profile.

Bob: Accordingly, our gross margin percentage will vary from period to period based on our revenue mix.

Bob: In the fourth quarter General administrative expenses were $4 2 million or 15% of revenue compared to $3 6 million or 15% of revenue in the same period slide 22.

Bob: Most of the dollar increase relates to an increase in noncash share based compensation expense and then in the same period last year.

Bob George: General administrative expenses for the year were $15.9 million, or 15% of revenue, compared to $14.7 million and 16% of revenue in 2022. We expect general administrative costs as a percentage of revenue to continue to trend lower in the future. Our net loss for the fourth quarter was $1.3 million, or a loss of $0.15 per share, compared to a net loss of $8.9 million and a loss of $1.02 per share in the same period last year.

Bob: General administrative expenses for the year were $15 9 million or 15% of revenue compared to $14, 716% of revenue in 2022.

Bob: We expect to see general administrative costs as a percentage of revenue to continue to trend lower in the future.

Our net loss for the fourth quarter was $1 3 million or a loss of <unk> 15 per share compared to a net loss of $8 9 million and a loss of $1 <unk> per share in the same period last year. The difference in the net loss between the fourth quarter of 2023 and 2022.

Bob George: The difference in the net loss between the fourth quarter of 2023 and 2022 is predominantly related to a non-cash valuation allowance placed on our net operating loss carry forwards of $8.5 million taken in the fourth quarter of 2022. Our net loss for the full year was $4 million, compared to a net loss of $23.6 million in 2022. The principal difference in the net loss from 2023 compared to 2022 was the non-cash goodwill charge of $16.3 million taken in the second quarter of 2022 and the non-cash valuation allowance placed on our net operating loss carry forwards in the fourth quarter of 2022. Moving to our balance sheet, I am excited to share the successful results of our cash management efforts over the past year. Although during the year we invested approximately $1.1 million to substantially complete our delivery platform, we still finished 2023 with $6.9 million in cash and no bank debt. Furthermore, we reduced our Days Sales Outstanding, or DSO, from 83 days in 2022 to 76 days in 2023.

<unk> related to a noncash valuation allowance placed on our net operating loss carryforwards of $8 5 million taken in the fourth quarter of 2022.

Bob: Our net loss for the full year was $4 million compared to a net loss of $23 6 million in 2022.

Bob: The principal difference in the net loss from 2023 compared to 2022 was the noncash goodwill charge of $16 3 million taken in the second quarter of 2022, and the noncash valuation allowance placed on our net operating loss carry forwards in the fourth quarter 2022.

Bob: Moving to our balance sheet.

Bob: I want to share the successful results of our cash management efforts over the past year.

Bob: Although during the year, we invested approximately $1 1 million to substantially complete our delivery platform. We still finished 23 was $6 9 million in cash and no bank debt.

Bob: Either we reduced our days sales outstanding or DSO from 83 days in 2022 to 76 days in 2023, our free cash flow, which we define as adjusted EBITDA minus capital investments was just over $300000 in the fourth quarter. When we expect to continue to be free cash flow positive throughout.

Bob George: Our free cash flow, which we define as adjusted EBITDA minus capital investments, was just over $300,000 in the fourth quarter, and we expect to continue to be free cash flow positive throughout 2024. Additionally, we've entered into a new revolving credit facility with Old Dominion National Bank, which is further described in our Form 10-K filed prior to this call. The facility provides us with an additional $4 million of potential borrowing capacity. We believe our cash on hand, credit facility, and expected free cash flow generated in 2024 will be sufficient to fund our anticipated growth and allow us to pursue the strategic initiatives outlined by Jen and Jason earlier. This completes my financial summary. For a more detailed analysis of our financial results, please refer to our Form 10-K, which was filed prior to this call. So with that, I will turn the call back over to Jen. Thank you, Bob and Jason.

Bob: <unk> 24.

Bob: Additionally, we have entered into a new revolving credit facility with old Dominion National Bank, which is further described in our Form 10-K filed prior to this call. The facility provides us with an additional $4 million of potential borrowing capacity we.

Bob: We believe our cash on hand credit facility and expected free cash flow generated in 2024 will be sufficient to fund our anticipated growth and allow us to pursue the strategic initiatives outlined by Jin and Jason earlier.

Bob: This completes my financial summary for a more detailed analysis of our financial results. Please refer to our Form 10-K, which was filed prior to this call.

Bob: So with that I will turn the call back over to Jim.

Jim: Thank you Bob and Jason.

Jin Kang: Our efforts and results this past year show significant year-over-year improvement, and we anticipate carrying this momentum into 2024 and beyond. As Bob mentioned, we are well equipped with ample cash to pursue the different initiatives Jason and I mentioned earlier. Additionally, I want to reiterate that AI will be a big disruptor for the foreseeable future, and we are taking careful aim to sift through all the noise and hype to implement elements of AI that will have the greatest impact on our business. We look forward to forming strategic relationships with leaders in the field of AI and especially those with existing tools to deepen our solutions and operational capabilities.

Jim: Our efforts and results this past year show significant year over year improvement seen and we anticipate carrying this momentum into 2024 and beyond.

Jim: As Bob mentioned, we are well equipped with ample cash to pursue the different initiatives, Jason and I mentioned earlier.

Jim: Additionally, I want to reiterate that AI will be a big disruptor for the foreseeable future and we are taking careful aim to sift through all the noise and hype to implement elements of AI that will have the greatest impact on our business.

Jim: We look to forming strategic relationship with leaders in the field of AI, and especially those with existing tools to deepen our solutions and operational capabilities. We also continue to look out for strategic M&A opportunities that provide synergistic opportunities and value to wide point give.

Jin Kang: We also continue to look out for strategic M&A opportunities that provide synergistic opportunities and value-to-life. Given that we are well-funded, we have the resources necessary to pursue any opportunities that arise. Though, as of now, I do not have any significant developments to report in this front. On a separate note, I'd like to touch on our ESG initiative. Specifically, Wye Point has developed a robust device recycling program that includes conserving precious resources and minimizing electronic waste, while committing to reducing carbon emissions through energy-efficient practices.

Jim: Given that we are well funded we have the resources necessary to pursue any opportunities that arise.

Speaker Change: So as of now I do not have any significant development to report in this front.

Speaker Change: On a separate note I'd like to touch on our ESG initiatives, specifically why point has developed a robust device recycling program that includes conserving precious resources and minimizing electronic waste, while committing to reducing carbon emission through energy efficient practices.

Jin Kang: Wye Point is also participating in efforts to preserve green space by converting unused property around one of our office locations into a rewilding area. Through these ESG initiatives, WidePoint is dedicated to environmental stewardship and sustainable business practices for a greener future. Looking ahead into fiscal year 2024, we expect revenue to range between $120 million and $133 million, and adjusted EBITDA to range between $2.1 million and $2.4 million. Additionally, we expect free cash flow to range between $2 million and $2.3 million. We are proud of the significant steps taken this year to enhance our financial health through a series of strategic initiatives and investments made this past year, as evidenced by our positive cash flow in Q4 2023 and improving margins projected for 2024, especially for our managed service. YPoint is at a turning point, and with a solid foundation and clear vision in place and the management team to execute our growth plan, we remain steadfast in our commitment to driving sustainable growth Operator, will you please open the call for questions? Everyone at this time will be conducting a question and answer session. We do ask that while posing your question, please pick up your handset if you're listening on speakerphone to provide optimum sound quality.

Speaker Change: <unk> is also participating in efforts to preserve green space by converting unused property around one of our office locations into a rewilding area.

Speaker Change: Through these ESG initiatives wide point is dedicated to environmental stewardship and sustainable business practice for a greener future.

Speaker Change: Looking ahead into fiscal year 2024, we expect revenue to range between $120 million and $133 million and adjusted EBITDA range between $2 1 million and $2 4 million. Additionally, we expect free cash flow to range between 2 million and $2 3 million, we are proud of the.

Speaker Change: Steps taken this year to enhance our financial health through a series of strategic initiatives and investments made this past year as evidenced by our positive cash flow in Q4, 2023, and improving margins projected for 2024, especially with our managed services.

Speaker Change: Why point is at a turning point and with a solid foundation and clear vision in place and the management team to execute our growth plan, we remain steadfast in our commitment to driving sustainable growth and creating long term value for her shareholders employees and communities we serve.

With that said, we are ready to take questions from our analysts and major shareholders. Operator will you. Please open the call for questions.

Speaker Change: Certainly everyone. At this time, we'll be conducting a question and answer session. If you have any questions or comments. Please press star one on your phone at this time we.

Speaker Change: We do ask them about posing a question. Please pickup your handset if you're listening on speaker phone to provide optimum sound quality.

Speaker Change: Once again, if you have any questions or comments. Please press star one on your phone.

Scott Buck: Once again, if you have any questions or comments, please press star 1 on your phone. Please hold while we poll for questions. Your first question is coming from Scott Buck from H.C. Wainwright. Your line is live. All right. Good afternoon, guys.

Speaker Change: Please hold while we poll for questions.

Speaker Change: Yeah.

Speaker Change: Your first question is coming from Scott Buck from H C. Wainwright Your line is live.

Scott Buck: Hi, Good afternoon, guys. Thanks for taking my questions.

Jin Kang: Thanks for taking my questions. Jen, I'm curious, with the 2024 guide and the contracts that you guys have in place, can you give us a little idea of maybe what's already in the bag, I guess, for 24 versus what you might have to go out and still earn to reach your guided revenue level? In terms of our guidance on the top line, you know, I would say, you know, 60, 65 percent of that is in the bag. And we also have things that we have fairly high confidence in. And so, you know, in terms of what we call percentage win or P win.

Scott Buck: I'm curious with the 2024 guide and the contracts that you guys have in place can you give us a little idea of maybe what.

Scott Buck: Whats already in the bag I guess for 24 versus what you might have to go out and still earn to reach your guy did a revenue level.

Scott Buck: In terms of our guidance on the top line.

Scott Buck: I would say, 60% 65% of that is in the bag and we also have things that we have a fairly high confidence in and so in terms of what we call percentage win RFP win and so you know 65, 70% in the bag and we have the other portions.

Jin Kang: And so, you know, 65, 70 percent in the bag, and we have the other portions of it at a very high win, you know, percentage. So we feel pretty confident that we will be able to hit within the guidance provided. Great, that's helpful.

Scott Buck: At a very high win percentage, so we feel pretty confident.

Scott Buck: To be able to hit within the the guidance provided.

Speaker Change: Great that's helpful and how should we think about the cadence of revenue through the year.

Jin Kang: And how should we think about the cadence of revenue through the year? The cadence of revenue should be, like it was in 2023; we should see sequential improvements as we go throughout the year. There may be some lumpiness at the end of the first quarter and beginning of the second quarter because there are some one-time value-added resale stuff that comes in, and depending on the timing of that, it could be lumpy, but we still see sequential improvements in revenue and profitability quarter over quarter. Great. And then turning to OPEX, besides some of the investments you're making on the sales side, can you support the growth you're expecting with the existing cost infrastructure, or are there other places where you need to spend a little bit more to help support that? Hey, Scott. This is Bob George.

Speaker Change: The cadence of revenue should be like it was in 2023, we should see sequential improvement as we head throughout the year there.

Speaker Change: There may be some lumpiness in like the end of the first quarter beginning of second quarter. Because there are some onetime value added resell stuff that comes in.

Speaker Change: And depending on the timing of that it could be lumpy, but we still see sequential improvements in revenue and profitability quarter over quarter.

Speaker Change: Great and then turning to Opex. Besides the some of the investments you're making on the sales side can.

Speaker Change: You have to support the.

Speaker Change: Growth youre expecting with the existing cost infrastructure or are there other places where you need to spend a little bit more to help.

To support that.

Hey, Scott This is Bob George.

Bob George: You know, in terms of infrastructure, we don't see a whole lot more spending. I mean, we do have inflation adjusters in our forecast, but no significant spend on anything. On the OPEC side, a little bit more on the sales and marketing side, which I think we talked about in terms of Yeah, so, strategic hires. But nothing significant.

Bob George: In terms of infrastructure, we don't see a whole lot more spending I mean, we do have inflation adjustments in our forecast, but no significant spend on anything.

Bob George: And the Opex side, a little bit more on the sales and marketing side, which I think we talked about in terms of yeah. So.

Bob George: Strategic hires but no nothing significant.

Bob George: Okay, perfect. And then, last one for me, Jane, you talked about M&A a little bit in your prepared remarks. I'm just curious if we could dive in there a little bit more and you could talk about, you know, what kind of criteria you would be looking at to potentially get a deal done. Yeah, in terms of, you know, our M&A and potential acquisition is that that's kind of on the back burner. I mean, we're not spending most of our priority and our time on, you know, growing organically.

Bob George: Okay Perfect and then last one from me John you talked about M&A, a little bit in your prepared remarks I'm. Just curious if we could dive in there a little bit more than you could talk about what kind of criteria. You will you would be looking at to potentially get a deal done.

John: Yeah in terms of you know our.

John: Our M&A and potential acquisition as that's kind of.

John: Back burner I mean, we're not we're spending most of our priority in our time and you know growing organically, but we are you know every now and then out there kicking the tires looking at opportunities and what we're looking for in terms of capabilities are companies that either do the same thing that we do and.

Jin Kang: But we are, you know, every now and then out there kicking the tires, looking at opportunities, and what we're looking for in terms of capabilities are companies that either do the same thing that we do and, essentially, buy their customers and move them on to our delivery infrastructure and eliminate the redundancies and make those deals immediately accretive, or look for companies that can potentially deepen our capabilities, like, you know, those companies that have specific capabilities in And so those are the types of capabilities that we're looking for. And we are also looking for companies that are stable and, you know, profitable. And we don't want to look for, you know, companies that are sort of, you know, pre-revenue, if you will, because that may endanger our financial performance. So we're looking for safe bets, singles, and doubles, you know; we're not swinging for the fences when we're looking for these opportunities.

John: And essentially buying their customers and moving them onto our delivery infrastructure and eliminating the redundancies in making those deals immediately accretive or looking for companies that potentially can deepen our capabilities like you know those companies that have specific capabilities in artificial intelligence.

John: It could help us deepen our capabilities and so those are the types of capabilities that we're looking for and we are also looking for companies that are stable and profitable.

John: And we don't want to look for companies that are sort of.

John: <unk> revenues, if you will because that may endanger our financial performance. So.

John: We're looking for a safe bets singles and doubles you know, we're not swinging for the fences when we're looking for these opportunities.

Opportunities.

Speaker Change: Great well I appreciate that and congrats again on the results guys.

Jin Kang: Well, I appreciate that, and congratulations again on the results, guys. Great, thank you. Operator, any additional questions?

Speaker Change: Great. Thank you.

Speaker Change:

Speaker Change: Operator, any additional questions certainly.

Operator: Certainly. Once again, everyone, if you have any questions or comments, please press star, then one on your phone. While the queue is being populated, I'll proceed with previously submitted questions. Question on the U.S. federal government budget. Now that President Biden has signed the fiscal year 2024 budget into law, what does that mean for whites? Thank you for that question.

Operator: Certainly once again, everyone. If you have any questions or comments. Please press star then one on your phone.

Speaker Change: While the key was being populated all proceeds previously submitted questions.

Speaker Change: Question on the U S. Federal government budget now that President Biden has signed for the fiscal year 2020 for budget into law, what does that mean for white point.

Speaker Change: Thanks for that question.

Speaker Change: As you know the ink is fairly dry on the budget Bill and so there are very few details on the on the federal budget and especially the department of Homeland Security budget. However.

Jin Kang: As you know, the ink is barely dry on the budget bill, and so there are very few details on the federal budget, and especially the Department of Homeland Security budget. However, what we do know is that our contract is considered essential services, and contract funding was approved for all of our current task orders. As such, we expect our contract to be fully funded, and it will be business as usual for us. We will inform you of any material changes to the status of our contract with the Department of Homeland Security and our federal government agencies by issuing press releases as necessary. The status of our contracts with all of our customers is essentially very similar to that of our DHS contract, and again, we'll keep you all informed. We have press releases if anything material happens. Thank you.

Speaker Change: However, while we do know is that our contract is considered essential services and contract funding was approved by all of our approved for all of our current task orders and as such we expect our contract to be fully funded and it will be business as usual for us.

Speaker Change: We will inform you of any material changes to the status of our contract.

Speaker Change: The department of Homeland security and it.

Speaker Change: In our federal government agencies.

Speaker Change: Issuing press releases as necessary.

Speaker Change: <unk> of our contracts with all of our customers.

Speaker Change: Essentially very similar to that of our DHS contract and again, we will keep you all informed we have press releases of anything material happens.

Speaker Change: Thank you a follow up question on the U S. Federal government budget, there's been a lot of discussion to specific to the department of Homeland security budget and potential budget cuts too can you provide some additional color as to how the new budget impacts white point and specifically to your contract with DHS.

Jin Kang: A follow-up question on the U.S. federal government budget. There has been a lot of discussion specific to the Department of Homeland Security budget and potential budget cuts to... Can you provide some additional color as to how the new budget impacts White Point and specifically your contract with DHS? As I said, the ink is barely dry, but we have heard in the news that the budget for DHS was one of the sticking points. However, we have very few details about DHS's budget.

And as I said, the ink is barely dry, but we have heard in the news that the budget.

Speaker Change: One was one of the sticking points we.

Speaker Change: We have very few details about dhs's budget. However, we can tell you that all of our current task orders with DHS are fully funded.

Jin Kang: However, we can tell you that all of our current task orders with DHS are fully funded. There is also some good news on our DHS contract front that we can share. As you know, the contract has a ceiling of $500 million, and I'm happy to report that based on our current contract run rate and funding commitments on our task orders with DHS, we are nearing the contract ceiling. So we are in communication with our counterparts at DHS to chart a course forward for the remainder of the contract period until the end of 2025. The likely course of action will be to raise the contract ceiling or recompete the contract earlier, or maybe even extend the contract for a few more years. These are all potential options that could help White Point.

Speaker Change: There is also some good news on our DHS contract front that we can share.

Speaker Change: As you know the contract has a ceiling of $500 million and I'm happy to report that based on our current contract run rate and funding commitments on our task orders with DHS, we are nearing the contract ceiling.

Speaker Change: So we are in communication with our counterparts at DHS to chart, a course forward for the remainder of the contract period until the end of 2025.

Speaker Change: The likely course of action will be to raise the contract ceiling.

Speaker Change: War Recompete the contract earlier or maybe even extend the contract for a few more years.

Speaker Change: These are all potential options that will that will help why point.

Jin Kang: As we learn more, we will provide additional detail. But suffice it to say that it is good news that we are running up against the contract ceiling. You mentioned in your remarks that you have another contract with the federal government that may grow into one of your largest government contracts, except for your DHS contract.

As we learn more we will provide additional detail, but suffice it to say that it is good news that we are running up against the contract ceiling.

Speaker Change: You mentioned in your remarks that you have won another contract with the federal government that may grow into one of your largest government contracts except for your DHS contract can you. Please provide additional details on this contract.

Jin Kang: Can you please provide additional details on this contract? Sure, we talked a little bit about that, and Jason talked about it as well, but we can tell you that we did win a material new contract with a quasi-federal government entity, and we also mentioned that we teamed with one of our strategic partners to win this contract. I'm happy to report that the implementation is going well, and we are already in talks with the end customer who is interested in the optional services that we offered in our proposal. As we upsell these optional services, we should see a material increase in the contract value. We will provide additional details as they become available, but suffice it to say that we are very excited about this opportunity, as well as our new strategic partnership, and we will name the end customer and the strategic partner as we are allowed to, and we should be doing that through a press release coming up shortly.

Speaker Change: Sure, we did talk a little bit about that and Jason talked about it as well, but we can tell you that we did win a material new contract with a quasi federal government entity as.

Speaker Change: And we also mentioned that we teamed with one of our strategic partners to win this contract.

Speaker Change: I'm happy to report that the implementation is going well and we are already in talks with the end customer who is interested in the optional services that we offered in our proposal.

Speaker Change: As we upsell. These optional services, we should see a material increase in the contract value.

Speaker Change: We will provide additional details as they become available but suffice it to say that we are very excited about this opportunity as well as our new strategic partnership.

Speaker Change: And we will name the end customer and a strategic partner as we are allowed to and we should be doing that through our press release.

Speaker Change: Coming up shortly.

Jin Kang: We also have identified several opportunities that we are already pursuing with this strategic partner, and I will mention that we displaced one of our main competitors to win this quasi-government organization's business, and so we feel pretty good about our future prospects. You mentioned in your comment that your capital investments are largely completed and that Widepoint will be free cash flow positive. If so, what is your plan for capital allocation?

Speaker Change: We also have identified several opportunities that we are already pursuing with this strategic partner.

Speaker Change: And I will.

Speaker Change: Mentioned that we displaced one of our main competitors to win this quasi government.

Speaker Change: Organizations business and so we feel pretty good about our prosperous future prospects there.

You.

Speaker Change: And in your comments that your capital investments are largely completed and that wide point will be free cash flow positive.

Speaker Change: If so what is your plan for capital allocation.

Speaker Change: Okay.

Jin Kang: Yes, I can confirm that our CapEx was materially completed at the end of Q4 2023. Also, in Q4, we experienced free cash flow of approximately $300K and see this trend continuing for the foreseeable future. We should see our cash balance grow throughout 2024. The management team is weighing various options, along with input and guidance from our board, including increased investment in sales and marketing, strategic hires, and a stock repurchase program, among others.

Speaker Change: Yes, I can confirm that our capex was materially materially completed at the end of Q4 2023.

Speaker Change: Also in.

Speaker Change: In Q4, we experienced a free cash flow of approximately 300, K and see this trend continue for the foreseeable future.

Speaker Change: We should see our cash balance growth throughout 2020 for.

Speaker Change: The management team is weighing various option.

Speaker Change: With input from our input and guidance from our board to.

Speaker Change: Including increased investment in sales and marketing strategic hires stock repurchase program among others.

Jin Kang: As we validate our forecasts and analyze our options, we will be forthcoming with additional information on that. You mentioned in your comments that your sales pipeline is large and growing. Can you quantify or provide some additional color on this front?

Speaker Change: We validate our forecasts and analyze our options, we will be forthcoming with additional information on that front.

Speaker Change: You mentioned in your comments that your sales pipeline is large and growing can you quantify or provide some additional color on this front.

Jason: Yeah, sure. I can take that. So we've seen a substantial increase in our pipeline due to recent wins of material contracts. So those closures have created new opportunities in the IAM and MMS arena within the same market. Specifically, our IAM pipeline has filled up tremendously due to the recent transportation sector when we announced in Q4. On the MMS front, with our recent wins in displacing our direct competitors, as Jen mentioned earlier, that has paved the way through our systems integrator partnerships to get a number of new opportunities. And lastly, as I stated in my prepared remarks, IT authorities have been on a roll closing new deals, and this is largely due to a successful channel partner program created to help supplement boots on the street while keeping overhead costs at a minimum.

Speaker Change: Yes, sure I can take that so we've seen a substantial increase in our pipeline due to recent wins material contracts.

Speaker Change: So those closures they've created new opportunities in the Iam and MMF arena within the same market.

Speaker Change: Typically our pipeline is filled up tremendously due to recent.

Speaker Change: Due to the recent transportation sector win we announced in Q4.

On the <unk> front with our recent wins in displacing our direct competitors as Jen mentioned earlier that has paved the way through our systems integrator partnerships to get a number of new opportunities.

Speaker Change: And lastly, as I stated in my prepared remarks it.

Speaker Change: Authorities has been on a roll closing new deals and this is largely due to a successful channel partner program created to help supplement boots on the street, while keeping overhead costs.

Speaker Change: At a minimum.

Speaker Change: At this time. This concludes our question and answer session. If your question was not taken please contact <unk> IR team at Www YY at Gateway dashed GOP Dot com.

Jason: At this time, this concludes our question-and-answer session. If your question was not answered, please contact WidePoint's IR team at www.gateway-grp.com. I'd now like to turn the call back over to Mr. Jin Kang for his closing remarks. Thank you, Operator. We appreciate everyone taking the time to join us today. As the Operator mentioned, if there were any questions we did not address today, please contact our IR team. You can find their full contact information at the bottom of today's earnings release. Thank you again, and have a great evening. Thank you for joining us today for WidePoint's fourth quarter and full year 2023 conference call. You may now disconnect. [inaudible]

Speaker Change: I'd now like to turn the call back over to Mr. Jin Kang for his closing remarks.

Jin Kang: Thank you operator, we appreciate everyone, taking the time to join US today as the operator mentioned if there were any questions. We did not address today. Please contact our IR team you can find their full contact information at the bottom of today's earnings release. Thank you again and have a great evening.

Speaker Change: Thank you for joining us today for wide points fourth quarter and full year 2023 conference call you may now disconnect.