Q4 2023 Siyata Mobile Inc Earnings Call

Operator: Good morning, ladies and gentlemen, and welcome to the Siyata Mobile Q4 2023 and full year 2023 earnings call. At this time, all lines are in a listen only mode.

Good morning, ladies and gentlemen, and welcome to the <unk> Mobile Q4, 2023, and full year 2023 earnings call.

At this time all lines are in a listen only mode.

Operator: Following the presentation, we will conduct a question and answer session. If at any time during the call you require immediate assistance, please press star zero for the operator. This call is being recorded on Tuesday, April 9, 2024. I would now like to turn the conference over to Glenn Kennedy, Vice President of International Sales. Please go ahead.

Following the presentation, we will conduct a question and answer session. If at any time during the call you require immediate assistance. Please press star zero for the operator. This call is being recorded on Tuesday April 9th 2024, I would now like to turn the conference over to Glen Kennedy Vice President of International sales. Please go.

Ahead.

Glenn Kennedy: Thank you for joining the Siyata Mobile fourth quarter and full year 2023 earnings call. Today I'm joined by our CEO, Marc Seelenfreund, and we will be available for questions at the end of the presentation.

Glenn Kennedy: Thank you for joining the Si Adam mobile fourth quarter and full year 2023 earnings call today I'm joined by our CEO, Mark Sealant front, and we will be available for questions at the end of the presentation.

Glenn Kennedy: During this call, management will make express and implied forward-looking statements within the Private Securities Litigation Reform Act of 1995 and other US federal securities laws. These forward-looking statements include but are not limited to those regarding future product offerings, the belief that we are on the path to strong organic growth, the goal to deliver strong year-over-year revenue growth and reach profitability in the coming quarters, and the timing and sale of our rugged handsets to North American and international carriers. Such forward-looking statements are based on the company's current expectations and assumptions regarding its business, the economy, and other future conditions. Because forward-looking statements relate to the future, they are not statements of historical fact and are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict.

Glenn Kennedy: During this call management will make express and implied forward looking statements within the private Securities Litigation Reform Act of $19 95, and other U S. Federal Securities laws. These forward looking statements include but are not limited to those statements regarding secret product offerings to.

Glenn Kennedy: The belief that we are on a path for strong organic growth.

Glenn Kennedy: The goal to deliver strong year over year revenue growth and reached profitability in the coming quarters, and the timing and sale of our rugged handsets to north American and international carriers.

Glenn Kennedy: Such forward looking statements are based on the company's current expectations and assumptions regarding its business the economy and other.

Glenn Kennedy: Their future conditions, because forward looking statements relate to the future. They are not statements of historical fact and are subject to inherit uncertainties risks and changes in circumstances that are difficult to predict.

Glenn Kennedy: The company's actual results may differ materially from those contemplated by the forward-looking statements. We caution you, therefore, against relying on any of these forward-looking statements. The company cannot guarantee future results, levels of activity, performance, or achievement. The forward-looking statements contained in this presentation are subject to other risks and uncertainties, including those discussed in the risk factors section and elsewhere in the company's annual report on Form 20-F for the year ended December 31, 2023, filed with the Securities and Exchange Commission. Now, I'd like to turn the call over to Marc.

Glenn Kennedy: The company's actual results may differ materially from those contemplated by the forward looking statements.

Glenn Kennedy: Caution you therefore against relying on any of these forward looking statements. The company cannot guarantee future results levels of activity performance or achievements. The forward looking statements contained in this presentation are subject to other risks and uncertainties, including those discussed in the risk factors section and elsewhere in the company.

Glenn Kennedy: Annual report on form 20-F for the year ended December 31, 2023 filed with the Securities and Exchange Commission.

Glenn Kennedy: Now I'd like to turn the call over to Mark.

Marc L. Seelenfreund: Thank you, Glenn. Good morning, and thank you for joining the call. For the fourth quarter of 2023 and December 31, revenues were $1.9 million compared to $2.1 million in Q4 2022, due mainly to increased sales of our mission critical SD7 handset and accessories, offset by decreased booster sales for the same period. Adoption of our critical communication devices is expanding both in the US and in international markets in multiple verticals, including public safety, education, healthcare, security, hospitality, and more. Given our performance throughout the year and our expanding sales pipeline, we are increasingly optimistic that strong sales growth momentum will continue throughout 2024. Revenue from the US was 67% of total revenue for the year compared to 59% in 2022. Rugged device sales in 2023 were $6 million versus $3.9 billion in 2022, an increase of approximately $2.1 billion in the year due to an increase in sales of the SD7 handset and accessories.

Unknown Attendee: Thank you Glenn good morning, and thank you for joining the call.

Unknown Attendee: For the fourth quarter of 2023 ended December 31 revenues were $1 $9 million compared to $2 1 million in Q4 2022, due mainly to increased sales of our mission critical SD <unk> handset and accessories offset by decreased booster sales for the same period.

Unknown Attendee: Adoption of our critical communication devices is expanding both in the U S and in international markets and multiple verticals, including public safety Education Health care security hospitality and more.

Unknown Attendee: Given our performance throughout the year and our expanding sales pipeline. We are increasingly optimistic that strong sales growth momentum will continue throughout 2024.

Unknown Attendee: Revenue from the U S was 67% of total revenue for the year compared to 59% in 2022 rugged device sales in 2023 were $6 million versus $3 $9 billion in 2022, an increase of approximately $2 1 billion in the year due to an increase in sales the seven headset and accessories grew.

Marc L. Seelenfreund: Gross Margin Percentage for Q4 2023 was 46.2% versus 8.1% in Q4 2022. Gross margin dollars increased from $170,000 to $900,000, a $700,000 positive variance, which is a 410% increase in gross margin dollars. SG&A expenses were $3 million in Q4 2023 versus $4 million in Q4 2022, a positive variance of one million dollars. Adjusted EBITDA for Q4 2023 was negative $2.3 million compared to negative $5 million in Q4 2022, which was a positive variance of $2.7 million. Working capital as of December 31, 2023, was just under $1.3 million versus just over $1.6 million as of December 31, 2022. 300,000 decrease in working capital. For the full year ended December 31, 2023. Total revenue was $8.2 million, compared to $6.5 million in 2022, which is a positive variance of $1.7 million, or a 27% increase. Gross margin dollars were $2.7 million in 2023 compared to $1.4 million in 2022, which is a positive variance of $1.3 million, a 91% increase. Finally, the gross margin percentage was 32.3% in 2023, compared to 21.4% in 2022, a significant improvement of 10.8 percentage points.

Unknown Attendee: Margin percentage for Q4, 2023 was 46, 2% versus eight 1% in Q4 2022 gross margin dollars increased from $170000 to $900000 or $700000 positive variance, which is a 410% increase in gross margin dollars SG.

Unknown Attendee: SG&A expenses were $3 million in Q4, 2023 versus $4 million in Q4 2022.

Unknown Attendee: A positive variance of $1 million.

Unknown Attendee: Adjusted EBITDA for Q4, 2023 was negative $2 $3 million compared to negative $5 million in Q4, 2022, which was a positive variance of $2 7 million.

Unknown Attendee: Working capital as of December 31, 2023 was just under $1 $3 million versus just over $1 6 million.

Unknown Attendee: As of December 31, 2022.

Unknown Attendee: 300000 decrease in working capital.

For the full year ended December 31, 2023, total revenue was $8 2 million compared.

Unknown Attendee: Compared to $6 $5 million in 2022, which is a positive variance of $1 7 million.

Unknown Attendee: 427% increase gross margin dollars were $2 $7 million in 2023 compared to $1 4 million in 2022, which is a positive variance of $1 3 billion and 91% increase.

The gross margin percentage was 32, 3% in 2023 compared to 21, 4% in 2022, a significant improvement of 10 eight percentage points.

Marc L. Seelenfreund: Turning over to significant business highlights, we are pleased to report that in the United States, which is our largest geographic market, Siyata has now launched its flagship SD7 handset on the four largest U.S. carriers, namely AT&T, including FirstNet, as well as Verizon, T-Mobile, and U.S. Cellular. With two of these carriers, we've achieved what is called stock status, which means that the carrier supports sell-through with subsidies and aggressive pricing options for its customers. In addition, we have recently been notified that we will be getting this stock status with a third major US wireless carrier as well in Q2. Less than a month ago, US Cellular released a PR that launched the SD7 handset with its push-to-talk or PTT service, and they called out how the Siyata handset enables two-way radio customers to seamlessly transition to its new PTT over-cellular service. The SD7 handset is the only direct radio replacement device offered by U.S. wireless carriers. Some wireless carriers and customers are calling the SD7 handset a cellular radio because it looks, feels, and functions like a traditional two-way radio, but it works on a nationwide cellular network, providing a much wider range than two-way radios.

Unknown Attendee: Turning to all parts of significant business highlights. We are pleased to report that in the United States, which is our largest geographic market. <unk> is now launched with our flagship SBC seven handset at the four largest U S carriers, namely AT&T, including first debt as well as Verizon T Mobile U S cellular.

Unknown Attendee: With two of these carriers, we've achieved what is cold stacked status, which means that the carrier supports the sell through with subsidies and aggressive pricing options for its customers. In addition, we have recently been notified that we will be getting this stock status with a third major U S wireless carrier as well in Q2, let's.

Unknown Attendee: Less than a month ago U S. Cellular released the PR that has launched the seven handset with its push to talk or PTT service and they called out have the cyan enhanced that enables two way radio customers to seamlessly transition to its new PTT oversight of the service the.

Unknown Attendee: The seven handset is the only direct radio replacement device offered by U S wireless carriers, some wireless carriers and customers are calling the seven asset a cellular radio because it looks steels and functions like the traditional two way radio, but it works on a nationwide cellular network, providing much boarder rates into our radios and it is also a much more cost effective to our radar.

Marc L. Seelenfreund: And it is also much more cost-effective than two-way radios used by first responders and large enterprise customers. Siyata is selling its products through the wireless carriers to a growing list of vertical markets, and Siyata is selectively expanding its distribution internationally, where it sells in Canada, Europe, Australia, and the Middle East. Less than two weeks ago, we announced a new large-scale logistics reseller for Siyata in the Middle East. Siyata is also developing an exciting and robust 5G rugged handset portfolio based on feedback from our end customers and our wireless carrier partners, which we will be announcing in the coming months. In addition, in June of 2023, we announced a new product called Siyata Real-Time View, together with a major order internationally. This is an innovative real-time camera system installed in first responder and enterprise vehicles to provide better fleet management and control.

Unknown Attendee: It's used by first responders and large enterprise customers.

Unknown Attendee: <unk> is selling through the wireless carriers to a growing list of vertical markets.

Unknown Attendee: Selectively expanding its distribution internationally, where we sell in Canada, Europe, Australia, and the Middle East listen two weeks ago, We announced a new large scale logistics reseller for Scioto in the middle East.

Unknown Attendee: <unk> is also developing an exciting and robust <unk> rugged handset portfolio based on feedback from our end customers and a wireless carrier partners, which we will be announcing in the coming months.

In addition in June of 2023, we announced a new product called <unk> added real time mute together with a major order internationally. This is innovative real time camera system installed and first responder and it's priced vehicles to provide better fleet management and control in Q3 of 2023, we installed our first units and ambulances at a leading international best customer.

Marc L. Seelenfreund: In Q3 of 2023, we installed our first units and ambulances at a leading international EMS customer, and the system provided outstanding results in real-time fuel cases. We continue to roll out this product to additional ambulances and EMS vehicles and expect this to be a great add-on to our product portfolio in 2024 and beyond. Based on our strength and position with the wireless carriers, we have seen growing demand for all of our PTT products, as shown by our growing sales funnel of opportunities. Our goal is to grow our revenue aggressively in 2024 and to reach breakeven status on a quarterly basis in the coming quarters. Now I would like to pass the line back to Glenn, who will discuss our sales activities, some market dynamics that are benefiting our business, and an update on our product categories.

Unknown Attendee: And our system provided outstanding results in real time fuel cases.

Unknown Attendee: We continue to roll out this product to additional ambulances and E&S vehicles and expect this to be a great add ons to our product portfolio in 2024 and beyond.

Unknown Attendee: Based on our strengthened position with the wireless carriers, we are seeing growing demand for all of our PTT product as shown by our growing sales funnel of opportunities. Our goal is to grow our revenue aggressively in 2024 and to reach breakeven status on a quarterly basis in the coming quarters.

Unknown Attendee: Now I would like to pass the line back to Glen who will discuss our sales activities. Some market dynamics that are benefiting our business and an update on our product categories.

Glenn Kennedy: Thank you, Marc. Marc just mentioned our sales funnel of opportunities. This is a list of over 50,000 units of SD7 handset potential sales for multiple school districts, police forces, hospitals, security companies, utilities, and more, who are in various stages of trials toward purchasing Siyata SD7 handsets. We know we're not going to win all of these opportunities.

Thank you Mark.

Glenn Kennedy: Mark just mentioned our sales funnel of opportunities. This is a list of over 50000 units of ft. Seven handset potential sales for multiple school districts Police forces hospitals security companies utilities, and more who are in various stages of trials towards purchasing siad.

Glenn Kennedy: S T. Seven handsets, we know we're not going to win all of these opportunities. However, we're confident that we will win a percentage of these plus we will continue to acquire new potential customers throughout 2024 were.

Glenn Kennedy: However, we're confident that we will win a percentage of these. Plus, we will continue to acquire new potential customers throughout 2024. We are also encouraged by the fact that the number of entries in our sales funnel is growing and the size of the multiple large-scale opportunities is also growing. Currently, we are conducting large-scale trials with a national airline, a global sporting event, several major school districts, leading transit companies, and a statewide government agency. One of our key wireless carrier partners, FirstNet, which is owned by AT&T, announced that as of December 31st, 2023, it now supports approximately 5.5 million push-to-talk over cellular connections to 27,500 public safety agencies, a gain of about 500 agencies during the fourth quarter of 2023 from the figures they released three months earlier.

Glenn Kennedy: We are also encouraged by the fact that the number of entries in our sales funnel is growing and the size of the multiple large scale opportunities is also growing.

Glenn Kennedy: Currently we are conducting large scale trials with the national airline.

Glenn Kennedy: Global Sporting event.

Glenn Kennedy: Several major school districts.

Glenn Kennedy: Leading transit companies and a statewide government opportunity.

Glenn Kennedy: One of our key wireless carrier partners first net which is owned by AT&T announced that as of December 31, 2023. It now supports approximately $5 5 million push to talk over cellular connections to 27500 public safety agencies, a gain of about 500.

Glenn Kennedy: <unk> during the fourth quarter of 2023 from the figures. They released three months earlier during the fourth quarter of 2023 first net added approximately 260000 push to talk over cellular connections.

Glenn Kennedy: During the fourth quarter of 2023, FirstNet added approximately 260,000 push-to-talk over cellular connections. Siyata works closely with FirstNet, and their growth is further evidence that U.S. first responder customers are moving towards push-to-talk over cellular solutions. In the rugged handset product category, we are focused on growing sales of our SD7 PTT handset that supports mission critical push-to-talk to North American and international wireless carriers. We displayed this handset at several trade shows during and after the quarter, including in March 2024 at the International Wireless Communications Expo, or IWCE for short, in Orlando, Florida, and at multiple regional shows in the U.S. in partnership with FirstNet and Verizon. Today, we're active with all major North American carriers, as Marc mentioned, and also with Telstra in Australia and KPN in the Netherlands, as well as with multiple dealers and distributors in the U.S. and international markets. Our objective remains to expand our launch with additional international carriers and with additional PTT application companies in the future. We're also building a recurring revenue channel by partnering with selected application providers who will share the monthly subscription revenue when we sell their applications on our devices to our customers.

Glenn Kennedy: <unk> works closely with first net and their growth is further evidenced the U S. First responder customers are moving towards push to talk over cellular solutions.

Glenn Kennedy: In a rugged handset product category, we are focused on growing sales of our ft. Seven PTT handset that supports mission critical push to talk to North American and international wireless carriers. We displayed this handset at several trade shows during and after the quarter, including in March 2024 at the international.

Glenn Kennedy: Wireless Communications Expo.

Or <unk> for short in Orlando, Florida, and at multiple original shows in the U S. In partnership with first net had Verizon.

Glenn Kennedy: Today, we are active with all major North American carriers, as Mark mentioned and also with Telstra in Australia, and KPN in the Netherlands, as well as with multiple dealers and distributors in the U S and international markets. Our objective remains to expand our launch with additional international carriers and with additional <unk>.

Glenn Kennedy: PTT application companies in future. We're also building a recurring revenue channel by partnering with selected application providers, who will share the monthly subscription revenue when we sell their application on our devices to our customers.

Glenn Kennedy: In our in vehicle devices category, we continue to sell our UV 350 in vehicle device with customers in North America and internationally. We announced an order during Q1 of 2024 of 1000 units of UV350 for an international EMS customer. We are experiencing increasing demand for our unique VK7 vehicle kit, which is a partner product to our SD7 handset. Several customers in the U.S., including some with yellow school buses, transit vehicles, and snowplows, are installing VK7 vehicle kits into their vehicles so that the SD7 handset can be easily used in the vehicle kit while their staff is in their vehicle. And also, in our in-vehicle product category, in 2023, we received our first order for $1.2 million for Siyata Real-Time View, an integrated advanced video monitoring Marc mentioned that we began to install the system in ambulances and first responder vehicles during the third quarter of 2023, and we look forward to more sales opportunities for this solution in 2024. Finally, in our cellular booster product category, we saw steady demand for cellular boosters throughout North America.

Glenn Kennedy: In our in vehicle devices category, we continue to sell through our use me $3 50 in vehicle device with customers in North America and internationally, we announced an order during Q1 of 2024 of 1000 units of UV $3 50 for an international <unk> customer.

Glenn Kennedy: We are experiencing increasing demand for our unique Z K seven vehicle kit, which is a partnered product to our SD seven handset several customers in the U S, including some with yellow school buses transit vehicles and snow piles are installing VK some vehicle kits into their vehicles, so that the SD <unk> handset.

Glenn Kennedy: Can be easily used in the vehicle while their staff are in their vehicles.

Glenn Kennedy: And also in our in vehicle product category 2023, we received our first order for $1 2 billion.

Glenn Kennedy: <unk> added real tied to you in the integrated advanced video monitoring system for emergency management services or EMS providers in their fleet vehicles, Mark mentioned that we began to install the system into ambulances and first responder vehicles. During the third quarter of 2023, and we look forward to more sales opportunities for this solution in 2000.

Glenn Kennedy: 24 <unk>.

Glenn Kennedy: Finally in our cellular booster product category, we saw steady demand for cellular boosters throughout North America.

Marc L. Seelenfreund: I will now hand the line back to Marc for his closing remarks.

Glenn Kennedy: I will now hand, the line back to Mark for closing remarks.

Marc L. Seelenfreund: Thanks, Glenn. Overall, we are excited to see a growing number of customers choose to transition from legacy LMR devices to our Siyata PTT handsets and accessories. We are pleased that this is happening across a wide variety of vertical industries and across multiple geographic markets. We believe that the core fundamentals are in place to grow our business both in North America and in international markets. Our goal remains to ramp up sales to reach break-even and then profitability as soon as possible, and this focus is shared by our entire board and management. We have filed our 2023 financial results with the SEC on a Form 20-F and urge our listeners to access them from the SEC's website. Search for Siyata Mobile.

Unknown Attendee: Thanks Glenn.

Unknown Attendee: Overall, we are excited to see a growing number of customers choose to transition from legacy LMR devices tower site out of PTT handsets and accessories.

Unknown Attendee: We are pleased that this is happening across a wide variety of vertical industries and across multiple geographic markets. We believe that the core fundamentals are in place to grow our business. Both in North America and international markets. Our goal remains to ramp up sales to reach breakeven and then profitability as soon as possible and this focus is shared by our entire board and management team.

Unknown Attendee: We are farther where 2023 financial results with the SEC on our form 20-F, and urge our listeners to access that from the Sec's website search for cyan immobile.

Operator: That concludes our formal remarks. With that, Operator, I finally open the call to questions. Thank you. Certainly. 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. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the start button. One moment, please, while we poll for questions. Your first question for today is coming from Neil Cataldi at Blueprint Capital Management.

None: And that concludes our formal remarks with that operator kindly open the call to questions. Thank you.

None: 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.

None: A 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 for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys.

None: One moment, please while we poll for questions.

None: Your first question for today is coming from Neil Cataldi at Blueprint capital management.

Unknown Attendee: Hey guys, I have a question for you about recurring revenue.

Unknown Attendee: Hey, guys. A question for you about the recurring revenue channel you mentioned I was wondering if you could expand on that a little bit more what percentage of revenue is it today.

Unknown Attendee: and the new channel you mentioned. I was wondering if you could expand on that a little bit more. What percentage of revenue is it today? How might it scale over time? Any notable difference in margins on that? Thank you.

Unknown Attendee: Scale over time any notable difference in margins on that.

None: Thank you.

Glenn Kennedy: Yeah, Neil, it's Glenn here. Thanks for the question. Our recurring revenue channel is, it's small today. I would say it's not yet material financially.

None: Yes, Neal it's Glenn here, Thanks for the question.

Glenn Kennedy: Our recurring revenue channel is it's small today I would say, it's not yet material financially. However, it's important for us and we are growing it and the way. It essentially works is the best way I can describe it is using an example, there is a company that offers a software application. They are called crisis go and it's.

Glenn Kennedy: However, it's important for us, and we are growing it. And the way it essentially works is, and the best way I can describe it is by using an example. There's a company that offers a software application. They're called Crisis Go.

Glenn Kennedy: And it's especially relevant for schools, the education market, K to 12 schools. And specifically, their solution, their application controls what happens when the SOS emergency button on our device is pressed. And they are, through their application, able to have the right people notified of an emergency situation in the classroom or somewhere in the school. And they're able to follow up through our two-way radio capabilities, our push-to-talk capabilities, and they're even able to notify local authorities. So when we co-sell that solution, our hardware with their software application, there's a subscription fee that the customer pays to Crisis Go, and a portion of that revenue will go to Siyata. So that's one example. It's not the only example, but that's one example of application partnerships that we're doing. And so, over time, we expect that to grow to become material. And we'll actually, you know, eventually down the road, call it out in terms of its percentage. But it's very important for us to develop that channel. Great, thanks. I appreciate the color.

Glenn Kennedy: Especially relevant for schools, the education market K 12 schools and specifically their solution their application controls what happens when the Sos emergency button on our device is pressed and.

Glenn Kennedy: Through their application they are able to have the right people notified of any emergency situation in the classroom or somewhere in the school and they're able to follow up through our two way radio capabilities, our push to talk capabilities and the reason, we're able to notify local authorities. So when we post sell that solution our hardware with their soft.

Glenn Kennedy: We're application there is a subscription fee that the customer pays to crisis go and a portion of that revenue will come to site add up. So that's one example, it's not the only example, but that's one example of.

Glenn Kennedy: Application partnerships that we're doing and so over time, we expect that to grow to become material.

Glenn Kennedy: And we will actually eventually down the road call. It out in terms of its percentage, but it is very important for us to develop that channel for us.

None: Great. Thanks, I appreciate the color.

None: Okay.

Operator: As a reminder, if you would like to ask a question, please press star one. Your next question for today is from Chris Zebra, a private investor. Chris, your line is live.

None: As a reminder, if you would like to ask a question. Please press star one.

None: Your next question for today is from Chris Zebra, a private investor.

None: Yes.

Chris Zebra: Chris Your line is live.

Chris Zebra: Good morning.

Chris Zebra: Good morning, you had mentioned the different vertical markets and their use cases for your products in which vertical markets are you seeing the most current success and which do you see the most upside potential and why.

Unknown Attendee: You mentioned the different vertical markets and the use cases for your products. In which vertical markets are you seeing the most current success, and which do you see the most upside potential, and why?

Marc L. Seelenfreund: I'll take that. This is Marc. Thanks for the question, Chris. So, you know, as we mentioned on the call, we have a lot of different verticals that we're going after, construction, first responders, utilities, but probably the largest vertical that we're seeing right now is actually schools. We've sold into, I want to say, well over 20 school districts until now. And in our funnel, I want to say at least 20 percent are various school districts across the United States. It's sort of a greenfield market for us because there were not really any radios there before.

Chris Zebra: I'll take that this is mark thanks for the question Chris.

Unknown Attendee: So as we mentioned on the call we have a lot of different verticals that we're going after <unk>.

Unknown Attendee: Construction first responders utilities.

None: <unk> the largest vertical that we're seeing right now is actually schools we've.

Unknown Attendee: We've sold into I want to say well over 20 school districts until now.

Unknown Attendee: Our funnel I want to say at least 20% or various school districts across the United States.

Unknown Attendee: From a greenfield market for us because we're not really radio was there before and this is a very cost effective way to get teachers security guards people that are working into schools.

Marc L. Seelenfreund: And this is a very cost-effective way to give teachers, security guards, and, you know, people that are working in the schools a communication tool that they can actually use in a time of emergency and also ongoing. So we think that that's going to be a very big vertical for us. There are over three million teachers in the United States. There are around half a million yellow school buses, and we're selling both the yellow school buses and to teachers. So we actually think that that's going to be the largest vertical for us going forward. Having said that, we have many, many other verticals that we're working on and that we're selling into. But if I have to pick out one specific vertical, it would be the schools. Education

Unknown Attendee: Communication tool that they can actually use in time with the emergency and also ongoing so.

Unknown Attendee: So we think that thats going to be a very big vertical for us there's over 3 million teachers in the United States is around half a billion yellow school buses and we're selling both yellow school buses and to teachers. So we actually think that thats going to be the largest vertical for us going forward, having said that we have many many other verticals that we're working on and that we're selling into but if I had to pick out one specific vertical.

Unknown Attendee: I would say will be the schools edgy.

Unknown Attendee: Education.

Unknown Attendee: Sounds good. Has college campus been something that's been looked into as well?

Unknown Attendee: It sounds good as college campus has been something that's been looked into as well.

Marc L. Seelenfreund: Yes, absolutely. We've already sold to some, a few college campuses. You know, that is not as big for us as specifically school districts. I can't say why.

Unknown Attendee: Yes, absolutely we've already sold to some a few college campuses.

Unknown Attendee: That is not as big for Us specifically school districts.

Marc L. Seelenfreund: But you know, just in general, colleges are also very interesting for us. We sell in colleges more to security operations within colleges, whereas in schools, we're selling specifically to teachers and security, people that are working at the schools, and the management of the schools. So we just see that as a bigger, bigger opportunity. And again, we sell both to schools and to yellow school buses. So it allows us to have a full opportunity to sell both our handsets and our vehicle devices. So you know, the answer to your question is yes, we are going after universities for sure. But specifically K-12, we believe that that's the bigger opportunity.

None: I can't say why.

None: Just in general our colleges is also something very interesting for US we sold in colleges more to security operations within colleges, whereas in schools were selling specifically the teachers and security and.

None: People that are working at the school the management of the schools.

None: So we just see that as a bigger bigger opportunity and again, we felt both of the schools entered the yellow school buses.

None: So as to have a full opportunity to sell both our handsets and our vehicle devices. So the answer to your question is yes, we are going after university for sure, but specifically K 12, we believe that that's the bigger opportunity.

Operator: Understandable, thank you. Thank you. This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

None: Understandable. Thank you.

None: Thank you.

None: This concludes today's conference and you may disconnect. Your lines at this time. Thank you for your participation.