Full Year 2023 SuperCom Ltd Earnings Call

April 22, 2024

Operator: Ladies and gentlemen, good morning and welcome to Supercom's fourth quarter and year-end 2023 Financial Results and Corporate Updates conference call. At this time, all participants are in a listen-only mode.

Operator 2: Ladies and gentlemen, good morning, and welcome to SuperCom's Q4 and year-end 2023 financial results and corporate update conference call. At this time, all participants are in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Participants of this call are advised that the audio of this conference call is being broadcast live over the Internet and is also being recorded for playback purposes. Joining me from SuperCom's leadership team is Ordan Trabelsi, SuperCom's President and Chief Executive Officer. During this call, SuperCom's management may be making forward-looking statements, including statements that address SuperCom's expectations for future performance or operational results.

Operator: Ladies and gentlemen, good morning, and welcome to SuperCom's Q4 and year-end 2023 financial results and corporate update conference call. At this time, all participants are in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Participants of this call are advised that the audio of this conference call is being broadcast live over the Internet and is also being recorded for playback purposes. Joining me from SuperCom's leadership team is Ordan Trabelsi, SuperCom's President and Chief Executive Officer. During this call, SuperCom's management may be making forward-looking statements, including statements that address SuperCom's expectations for future performance or operational results.

Ladies and gentlemen, good morning, and welcome to Super Com's fourth quarter and year end 2023 financial results and corporate update conference call.

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

Operator: Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask a question. To ask a question, you may press star, then 1 on your telephone keypad. To withdraw your question, please press star, then 2.

Should you need assistance. Please signal a conference specialist by pressing the Starkey followed by zero.

After todays presentation, there will be an opportunity to ask questions to ask a question you May Press Star then one on your telephone keypad.

To withdraw your question. Please press Star then two.

Operator: Participants of this call are advised that the audio of this conference call is being broadcast live over the internet and is also being recorded for playback purposes. Joining me from Supercom's leadership team is Ordan Trabelsi, Supercom's president and chief executive officer. During this call, Supercom's management may be making forward-looking statements, including statements that address Supercom's expectations for future performance or operational results. Such forward-looking statements involve risks, uncertainties, and other factors that may cause Supercom's actual results to differ materially from those statements.

Participants of this call are advised that the audio of this conference call is being broadcast live over the Internet and is also being recorded for playback purposes.

Joining me from Supercomm as leadership team is Oregon for biopsy suite becomes president and Chief Executive Officer.

During this call Supercoil mismanagement may be making forward looking statements, including statements that address it becomes expectations for future performance or operational results.

Operator 2: Forward-looking statements involve risks, uncertainties, and other factors that may cause SuperCom's actual results to differ materially from those statements. For more information about these risks, uncertainties, and factors, please refer to the risk factors described in SuperCom's most recently filed periodic reports on Form 20-F and Form 6-K, and SuperCom's press release that accompanies this call, particularly the cautionary statements in it. Today's conference call includes EBITDA, a non-GAAP financial measure that SuperCom believes can be useful in evaluating its performance. You should not consider this additional information in isolation or as a substitute for results prepared in accordance with GAAP. For a reconciliation of this non-GAAP financial measure to net loss, a comparable financial measure, please see the reconciliation table located in SuperCom's earnings press release that accompanies this call.

Operator: Forward-looking statements involve risks, uncertainties, and other factors that may cause SuperCom's actual results to differ materially from those statements. For more information about these risks, uncertainties, and factors, please refer to the risk factors described in SuperCom's most recently filed periodic reports on Form 20-F and Form 6-K, and SuperCom's press release that accompanies this call, particularly the cautionary statements in it. Today's conference call includes EBITDA, a non-GAAP financial measure that SuperCom believes can be useful in evaluating its performance. You should not consider this additional information in isolation or as a substitute for results prepared in accordance with GAAP. For a reconciliation of this non-GAAP financial measure to net loss, a comparable financial measure, please see the reconciliation table located in SuperCom's earnings press release that accompanies this call.

Forward looking statements involve risks uncertainties and other factors that may cause <unk> actual results to differ materially from those statements.

Operator: For more information about these risks, uncertainties, and factors, please refer to the risk factors described in Supercom's most recently filed periodic reports on Form 20-F and Form 6-Q and Supercom's press release accompanying this call, particularly the cautionary statements. Today's conference call includes EBITDA, a non-GAAP financial measure that Supercom believes can be useful in evaluating its performance. You should not consider this additional information in isolation or as a substitute for results prepared in accordance with GAN.

For more information about these risks uncertainties and factors. Please refer to the risk factors described in Super Commerce. Most recently filed periodic reports on form 20-F.

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And so it becomes press release by the company is difficult.

Particularly the cautionary statements in us.

Today's conference call includes EBIDTA and non-GAAP financial measure that Supercomm believes can be useful in evaluating its performance.

You should not consider this additional information in isolation or as a substitute for results prepared in accordance with GAAP.

Operator: For a reconciliation of this non-GAAP financial measure to net loss, a comparable financial measure, please see the reconciliation table located in Supercom's earnings press release that accompanies this call. Reconciliations for other non-GAAP financial measures and comparable GAAP financial measures are available there as well. The content of this call contains time-sensitive information that is accurate only as of today, April 22, 2024. Except as required by law, Supercom disclaims any obligations to publicly update or revise any information to reflect events or circumstances that occur after this call. It is now my pleasure to turn the call over to Supercom's President and CEO, Ordan Trabelsi. Thank you.

For a reconciliation of this non-GAAP financial measure to net loss a comparable financial measure.

Please see the reconciliation table located in soup becomes earnings press release that accompanies this call.

Operator 2: Reconciliations for other non-GAAP financial measures and comparable GAAP financial measures are available there as well. The content of this call contains time-sensitive information that is accurate only as of today, 22 April 2024. Except as required by law, SuperCom disclaims any obligations to publicly update or revise any information to reflect events or circumstances that occur after this call. It is now my pleasure to turn the call over to SuperCom's President and CEO, Ordan Trabelsi.

Operator: Reconciliations for other non-GAAP financial measures and comparable GAAP financial measures are available there as well. The content of this call contains time-sensitive information that is accurate only as of today, 22 April 2024. Except as required by law, SuperCom disclaims any obligations to publicly update or revise any information to reflect events or circumstances that occur after this call. It is now my pleasure to turn the call over to SuperCom's President and CEO, Ordan Trabelsi.

Reconciliations for other non-GAAP financial measures and comparable GAAP financial measures are available there as well.

The content of this call contains time sensitive information that is accurate only as of today April 22024.

Except as required by law Supercomm disclaims any obligations to publicly update or revise any information to reflect events or circumstances that occur. After this call.

Speaker Change: It is now my pleasure to turn the call over to Super Com's, President and CEO or I'm sure Betsy.

Ordan Trabelsi: Good morning, everyone, and thank you for joining us today. Earlier this morning, we issued a press release about our financial results for the first quarter and full year of 2023, which you can find in the Venture Relations section of our website at www.supercom.com. Today, I'll start my comments with a brief update on our recent business highlights, strategy, and Q4 and 2023 results, followed by a Q&A session. I'm excited to share with you the Supercom that's in progress for 2020, which reflects the tremendous strides we have made in our operations at the edge of space.

Ordan Trabelsi: Thank you, operator. Good morning, everyone, and thank you for joining us today. Earlier this morning, we issued a press release of our financial results for Q1 and full year of 2023, which you can find on the Investor Relations section of our website at www.supercom.com. Today I'll start my comments with a brief update on our recent business highlights, strategy in Q4 and 2023 results, followed by a Q&A session. I'm excited to share with you SuperCom's outstanding performance for 2023, which reflects the tremendous strides we made in our operations and edge position. 2023 was a landmark year for SuperCom. Annual revenue increased by 51% to a five-year record level of $26.6 million.

Betsy: Thank you operator.

Betsy: Good morning, everyone and thank you for joining us today.

Betsy: This morning, we issued a press release in the financial results for the fourth quarter and full year of 2023.

Speaker Change: Finally on the Investor Relations section of the website at Www.

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Speaker Change: Yeah.

Speaker Change: But I like the strategy Q4 in 2023 years old I would like you would a session.

Speaker Change: I'm excited to share with us.

Speaker Change: Thank you Jamie.

Speaker Change: As far as he made.

Speaker Change: The hedge position.

Ordan Trabelsi: [inaudible] Annual revenue increased by 51% to a 5-year record level of $26.6 million. The company reached a 5-year record positive EBITDA level of $4.8 million, marking the 6th and 2nd quarter of positive EBITDA. After years of investing, we are leading Edge IoT technology.

Speaker Change: But there was some end market.

Jamie: Thank you Robert.

Jamie: Five year record.

Robert: $6 $6 million and the company reached a five year record.

Ordan Trabelsi: The company reached a five-year record of positive EBITDA of $4.8 million, marking the sixth consecutive quarter of positive EBITDA after years of investing in our leading-edge IoT technology. We also continued to improve operating cash significantly, from operating cash flows of $9.4 million in 2021 to $4.7 million in 2022, and to only $2.4 million in 2023, increasing our cash flow by 75% in the past two years. We've had a positive cash flow generation from new and old projects. This reflects progress in the right direction towards self-sustainability and positive cash flows. These financial metrics not only underline a strong execution, but also the increasing efficiency and scalability of operations.

Speaker Change: Got it.

Speaker Change: Marking the sixth consecutive quarter.

Speaker Change: After years of investing in our leading.

Speaker Change: Edge Iot technology.

Ordan Trabelsi: We also continue to improve our operating cash flow significance. We had operating cash flows of $9.4 million in 2021, $4.7 million in 2022, and only $2.4 million in 2023, decreasing our cash flow by 75% in the past two years, which has been a positive cash flow generation for new and old projects. This reflects progress in the right direction towards self-steerability and confidence. These financial metrics not only underline strong execution but also the increasing efficiency and scalability of operations.

Speaker Change: We also continue to property and casualty operating cash usage.

Speaker Change: Sure.

Speaker Change: Millions pumps since June and it's only $4 million.

Speaker Change: Jarrod Castle.

Speaker Change: In the past two years have been.

Positive cash generation.

Speaker Change: Gold project.

Speaker Change: Much progress.

Speaker Change: In the right direction.

Speaker Change: Yes.

Speaker Change: These financial metrics.

Speaker Change: Strong execution, but also the increasing efficiency and scalability expressions.

Ordan Trabelsi: Within the past year, we won several important contracts in the US and Europe, and we are excited about the opportunities we see ahead. I'll go more into detail in a few moments, and we're proud of these meaningful achievements. I want to take a moment here and thank our incredible team at SuperCom for their hard work and dedication to making this all possible. Thank you. For those new to SuperCom, our mission is to revolutionize the public safety sector across the globe. We have a proprietary electronic monitoring technology, data intelligence, and suite of complementary services. With over 35 years of experience since our founding in 1988, we've been a trusted partner to dozens of national governments worldwide, providing cutting-edge electronic and digital security solutions. Our strategic footprint is straightforward yet powerful.

Ordan Trabelsi: In the past year, we've won several important contracts in the U.S. and New York, and we're excited about the opportunity to see a few more. I'll go into more detail in a few moments, but we're proud to be here to continue. I want to take a moment here and thank our incredible team at Supercom for their hard work and dedication to making this all possible. Thank you.

Speaker Change: Oh yeah.

Speaker Change: Yes.

Speaker Change: Tomorrow.

Speaker Change: Moments.

Speaker Change: I'll take.

Take a moment here.

Speaker Change: Yes.

Speaker Change: The hard work dedication to making this all possible. Thank you.

Ordan Trabelsi: For those new to Supercom, our mission is to revolutionize the public safety sector across the globe with our proprietary electronic monitoring technology, data intelligence, and suite of complementary services. With over 35 years of experience since our founding in 1988, we've been a trusted partner to dozens of national governments worldwide, providing cutting-edge electronic and digital security solutions. Our strategic culprit is straightforward, yet powerful. These are the innovative sociologies that offer superior solutions, and Stanard Lopez, and the Deliver Updating Service. The strategy is back, Molly.

Speaker Change: Our mission is to revolutionize the public safety sector.

Speaker Change: Neurology data intelligence suite of complementary services, whatever 35 years of experience.

Speaker Change: We've been a trusted partner dozens of national carriers worldwide, providing cutting edge electronic and digital solutions.

Speaker Change: Brokerage.

Speaker Change: Oh yeah.

Ordan Trabelsi: Lead with innovative technology, develop superior solutions, and expand our global presence and deliver outstanding service. The strategy is backed by a proprietary electronic monitoring technology, which scores highly in competitive government tenders and supports various programs such as house arrest, GPS monitoring, rehabilitation services, domestic violence prevention, and more. Since 2018, SuperCom has secured over 50 new multi-year government projects. A strong, growing reputation as a premium provider of electronic monitoring solutions and services enhance our market position with each new customer win. Our strategic focus on IoT tracking businesses in both markets where the opportunity is greatest. With the electronic monitoring market projected to reach $2.1 billion by 2026, the US and Europe constitute about 95% of these markets. These successful opportunities have resulted in a growing business pipeline with strong recurring revenues.

Speaker Change: Neither but then what made it does at all.

Speaker Change: All three of our solutions.

Speaker Change: Instead, our low leverage and deliver outstanding service strategy is back.

Ordan Trabelsi: A proprietary and trans-monitor technology that scores highly in competitive government tenders and supports various programs such as fast arrest, GPS monitoring, rehabilitation services, domestic violence prevention, and more. Since 2018, Supercom is just here with over 50 new multi-year government projects. A strong growing reputation as a premium provider of electronic management solutions and services enhances our market position with each new customer. Our strategic focus on IT tracking business in both markets with opportunity is strong. Although the traffic monitoring market potential is $2.1 billion by 2026, the US and Europe constitute about 95% of the GDP.

Speaker Change: Our proprietary model.

Speaker Change: Okay.

Speaker Change: Is it sports various program, yes, GPS monitoring patient.

Speaker Change: Patient services domestically.

Speaker Change: And more.

Speaker Change: 2018, we're probably sit here.

Speaker Change: Over 50, new multi year agreement.

Speaker Change: Perfect.

Speaker Change: Our strong growth.

Speaker Change: Technology.

Speaker Change: In terms of the market.

Speaker Change: With each new customer.

Speaker Change: Does it focus on driving.

Speaker Change: Opportunities.

Speaker Change: That's correct.

Speaker Change: Okay.

Speaker Change: No 1 billion.

Speaker Change: Six in U S and Europe constitute about 90% of these standards.

Ordan Trabelsi: These successes and opportunities have resulted in a growing business; actually, I'm a strong attorney right now. In 2023, we will continue to amplify our technology leadership and significant R&D investment. We're committed to launching advanced solutions like peer-protected peer-to-peer. These offerings are already making big money in various markets, including the U.S., and are pivotal to become as big as markets. Peer Protect is a life-saving domestic violence management solution. The solution provides improved protection for families suffering from domestic violence. The innovative solution addresses domestic violence issues and further enhances the company's portfolio of products and services. Pier 1 and Long 1 are GPS tracking duplicates.

Speaker Change: Good luck.

Speaker Change: And the good news.

I'm sorry.

Ordan Trabelsi: In 2023, we continued to amplify our technology leadership with significant R&D investment, leading to the launch of branded solutions like PureProtect and PureOne. These offerings are already making headway into various markets, including the US, and are pivotal to SuperCom's market expansion. PureProtect is a life-saving domestic violence monitoring solution. The solution provides improved protection to families suffering from domestic violence. The innovative solution addresses domestic violence issues and further enhances the company's portfolio of products and services. PureOne is an all-in-one GPS tracking and location monitoring solution that integrates comprehensive monitoring capabilities into a single device. Like many of our products, that offers top-notch features placing it above the competition in most metrics. These products also expand the company's addressable market.

Speaker Change: One is what is really.

Speaker Change: All these years.

Speaker Change: R&D investment into large embedded solution that can drill one that's.

Speaker Change: That's pretty amazing.

Speaker Change: Various markets, including the U S.

Gross margin expansion.

Speaker Change: People forget.

Speaker Change: It is the best.

Speaker Change: Solution the solution provider for protection.

Speaker Change: The interbody that so much of the visit.

Speaker Change: Issues further ahead.

Speaker Change: Mhm services.

Speaker Change: If you ever wanted to smaller ones.

Speaker Change: Yes.

Ordan Trabelsi: Monitoring Solution and Integrate Apprehensively Answering Capabilities into a Single Device. And many of our products that offer top-notch features place them above the competition in most markets. His products also expand the company's dressing room. We've been very pleased with the reception and traction of our newest addition and expect it to help facilitate the accelerated expansion of Supercom into the U.S. market and further into the European market. We fortified the operation of the church to support our growth and have re-evaluated our self-managing and proactive self-operative approach. Our self-team would be the greatest treasurer of peace.

Speaker Change: Monitoring solution that is comprehensive.

Speaker Change: Bodies interestingly otherwise.

Speaker Change: The offers have not futures pleasure Bob.

Speaker Change: The competition in muscle tissue.

Yes.

Speaker Change: This has also expanded.

Speaker Change: Got it.

Ordan Trabelsi: We've been very pleased with the reception and traction of our newer solutions and expect that to help facilitate the accelerated expansion of SuperCom into the US market and further European countries. We fortified our operational research to support our growth and have refined our sales strategy with an outreach approach. Our sales team, with deep industry expertise, has been instrumental in achieving new wins and turning green. We now see countless ways in the US and Europe for global advancements. SuperCom has continued to displace incumbent vendors and achieved over 65% win rate with European incumbent vendors. Despite natural economic uncertainties and ongoing Israel-Gaza war, SuperCom solutions are becoming increasingly important. Factors like high recidivism rates, inflated costs of incarceration, make our solutions not only cost-effective, but also essential for governments looking to enhance public safety at this cost.

Speaker Change: We've been very pleased with our assumptions.

Speaker Change: Gotcha.

Speaker Change: Oh, sorry.

Speaker Change: Because in the U S market and further east in Texas.

Speaker Change: We fortified our operational constraints, where it goes.

Speaker Change: Definitely.

Speaker Change: Average approach.

Speaker Change: Sure.

Ordan Trabelsi: That's been an insurrection on achieving new ways of turning the world around. They were announced in public space in the U.S. in their four-minute long passage, continues to displace incumbent vendors and cheat over 65% of the wood rate of European-funded tenders. Despite natural and government agencies and the ongoing Israel-Gaza war, supercompositions are becoming increasingly important. [inaudible] The solution is not only cost-effective but also essential for governments looking to enhance public safety and reduce costs.

Speaker Change: That's the short answer in two ways.

Speaker Change: Without the problems within the last year.

Speaker Change: Sure.

Speaker Change: Got it.

Speaker Change: European.

Speaker Change: Despite basketball.

Speaker Change: And I'll go to Israel, because look absolutely there'll be kind of interesting.

Speaker Change: As a courtesy of is crazy.

Speaker Change: Great.

Speaker Change: Alright.

Speaker Change: Sure.

Speaker Change: And they are doing.

Speaker Change: The fact that lucky essential governance booking.

Speaker Change: He had this cost the company.

Ordan Trabelsi: The company's risk-based technology solutions have been designed to address this trend, offering an effective way for institutions to enforce home confinement, ease prison overcrowding, and lower costs in this community. For example, the total daily cost for monitoring a federal home confinement program, or GPS monitoring, is approximately $10 to $35, compared to a much higher cost of $100 to $140 at a correctional facility.

Ordan Trabelsi: The company's three security technology solutions have been designed to address this trend, offering an effective way for institutions to enforce home confinement, ease prison overcrowding, and lower costs significantly. For example, the total daily cost for monitoring a federal home confinement or GPS monitoring is approximately $10 to $35, compared to a much higher cost of $100 to $140 a day at a correctional facility. Most importantly, home confinement has been shown to reduce recidivism, highlighting its effectiveness in helping offenders improve their lives and communities. On top of these growth drivers, we have witnessed a surge in adoption of prison protection solutions worldwide, which runs perfectly with our strategic plan and the launch of a new product, PureProtect. In the European market, SuperCom expanded businesses both with current customers pursuing new contracts, which are typically awarded through a competitive tender process.

Speaker Change: It is.

Speaker Change: As I just described.

Speaker Change: Okay.

Speaker Change: Is it over and over.

Speaker Change: Right exactly.

Speaker Change: Awesome.

Speaker Change: As you would guess monitored approximately temperatures of dollars right.

Speaker Change: Much higher path of 107 hundred $40.

Speaker Change: At a correctional facility.

Ordan Trabelsi: Most importantly, help confinement and show it to a different set of individuals, highlighting its effectiveness and helping offenders in field drives and communities. On top of these field drivers, we have put the necessary adoption of visa protection solutions for all Americans, which runs perfectly well with a strategic plan and the launch of a new product, Peer Protect. In the European market, supercompanies have traded in businesses for over 10 centuries, pursuing new contracts, which are typically awarded through a competitive debtor, launched a $3.6 million national EM project in Finland with the national government in Q1 2023.

Speaker Change: Most importantly healthy.

Speaker Change: And so we're busy citizen.

Speaker Change: Highlighting this.

Speaker Change: How can the vendors until July two communities.

It wasn't necessary to adoption.

Speaker Change: The protection solutions.

Speaker Change: Lots of them.

Speaker Change: Sure.

Speaker Change: And the European markets.

Speaker Change: Okay.

Speaker Change: Alright.

Speaker Change: Okay.

Ordan Trabelsi: SuperCom launched a $3.6 million national EM project in Finland with the national government in Q1 2023. In May 2023, the PureSecurity EM suite was fully deployed in Finland, covering all EM-related programs, house arrest, GPS, and in-jail monitoring. In Q3 2023, we secured a new national program with the Finnish government to deploy our domestic violence monitoring solution. The deployment of our PureSecurity suite consisting of PureProtect, PureTrack, PureTag ankle monitor was demonstrated. The versatility and effectiveness of our solution underscore our leadership in the electronic monitoring space. Our collaboration with Finland is a fine and prime example of the confidence that Finland has in SuperCom, and those with experience with our service often choose to broaden their engagement with our various array of solutions. If we start with one solution, there is ample opportunity to deploy others, as seen here.

Speaker Change: It's $6 million.

Speaker Change: Similarly, with the Bachelet government and coupons.

Ordan Trabelsi: By May 2023, the Paris Security Institute will be fully deployed in Finland, covering all the N400 programs, Outstrips, GPS, and IndyCar. Thank you for joining us today on the Secure an International Program with the Finnish Government to Deploy our Domestic Violence Monitoring System. The point of our first series is to demonstrate the versatility and effectiveness of our solutions in the mechanical engineering space.

Speaker Change: The security, yes, it was.

Speaker Change: Please go ahead.

Speaker Change: Alright.

Speaker Change: Oh yeah.

Speaker Change: Excuse me.

Speaker Change: And international programs.

Speaker Change: Our domestic.

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Speaker Change: The bulk of our peer security speakers.

Speaker Change: Good day.

Speaker Change: But part of it.

Speaker Change: Demonstrates the versatility and effectiveness of our solutions as part of the leadership.

Ordan Trabelsi: Our collaboration with Finland is fine, and we have five examples: Comcast, Atlanta, and Supercom. Those are the firms that are resourced and choose to broaden their engagement with our various solutions. So if we start with one solution, there's ample opportunity to deploy developers, as we have seen.

Speaker Change: Within the space.

Speaker Change: Our collaboration with <unk>.

Speaker Change: Alright.

Speaker Change: I don't get it.

Speaker Change: It doesn't assume any service cost inflation.

Speaker Change: That's correct. So if you start with one solution there's air block Healy.

Speaker Change: That's easier.

Ordan Trabelsi: Notably, at the end of 2023, the company won the largest industry award of the year for a national electronic monitoring project in Romania, valued at $33 million, which could have up to 15,000 monitored offenders per month for up to 6 years. During 2023, we announced orders valued at over $10 million from Romania's Ministry of Interior, further extending our engagement in the country's national EM project. This large sale reinforces the strength of the PureSecurity suite and cements our position as a trusted partner for governments worldwide. We've also launched our domestic violence solutions in other European regions and have recently launched them in the US. In Israel, there's high potential for new domestic violence projects that the government has just passed a law requiring domestic violence offenders to be monitored with technologies such as ours.

Ordan Trabelsi: Notably, at the end of 2022, the company won the largest industry award of the year for national track monitoring projects in Romania, valued at $33 million, including up to 15,000 monitors per month for up to six years. And in 2020, the company announced orders valued at over $10 million from Romania's Ministry of Interior, further extending its engagement in the country's national EM project. This article acknowledges and reinforces the strength of the trade security suite and its immense opposition as a trusted partner of governments worldwide.

Speaker Change: Notably.

Speaker Change: The largest industry award in the year.

Speaker Change: Monitoring trying to intervene.

Speaker Change: The 15000 monitored.

Speaker Change: Six years.

Speaker Change: So I do think that as far as valued at over $10 billion, maybe is ministry of interior further extending our engagement in the countries that for your project.

Speaker Change: Yes.

Speaker Change: Most of the staff and the tree security suite as it cements our position as a trusted partner governments worldwide.

Ordan Trabelsi: We've also launched a domestic violence solution out here at PDVD and have recently launched it in the USA. In Israel, there's strong protection for the domestic violence charges that the government has just passed, and it's all required for domestic violence offenders to be monitored through technology.

Speaker Change: We've also launched.

Speaker Change: Some of your existing did you recently launched 17 per se.

Speaker Change: Sure I'll start you can do the math.

Speaker Change: Just passed a law required.

Speaker Change: Oh geez.

Ordan Trabelsi: All this Supercom already does business in most of the U.S. states. They're actively focused on further expanding their presence in the U.S. The company strategically prioritizes Q1 expansion as a new marketing challenge, has already received high praise during its introduction to various features of the device, or PureOne, and has successfully deployed and is actively utilized to monitor a lot of tenders. Moreover, sales activities for PureOne have been immensely promising in new markets outside Europe and North America.

Ordan Trabelsi: While SuperCom already does business in multiple US states, we are actively focused on further expanding our presence in the US. The company strategically prioritizes PureOne expansion into new markets and geographies. It has already received high praise during its introduction into various regions in the US, where Pure 1 has been successfully deployed and is actively utilized to monitor a lot of offenders. Moreover, several cities for Pure 1 have commenced promising new markets outside Europe and North America. Our new strategic sales team in New York has been the first step in executing the company's US market expansion strategy and have already been driving increased activity, visiting customers in numerous to do demos and evaluations of potential new wins. Our expansion in the US market has been marked by another significant milestone. We have secured new contracts in California through our subsidiary, LCA.

Speaker Change: All of this will come already does business and wants to do you think you're actually.

Speaker Change: Right.

Speaker Change: In the U S.

Joe: Martin This is Joe.

Joe: New markets and geographies has already received high freight demand and especially.

Joe: And do you like a pure.

Joe: What is important.

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Joe: Washington Policy, Novartis outside Europe, and North America.

Ordan Trabelsi: Our new strategic sales team and new employees have been the first steps in instituting the company's U.S. market expansion strategy and have already been driving increased activity, visiting customers for numerous new demos, and valuations of potential new work are expanding the U.S. market a bit more, but another significant milestone with the security and new contracts in California for our succeeding LCA. Since the launch of our Pure One solution in late 2023, we've already secured 200 contracts in California and another contract in Canada to provide the solution.

Joe: Our new strategic sales team in two ways first steps on this U S market and Ive already driving increased activity visiting customers and numerous do demos and evaluation of potential new ones.

Joe: In the U S market has been more than others.

Joe: Securities.

Philadelphia Center larger tier one solution.

Ordan Trabelsi: Since the launch of our Pure 1 solution in late 2023, we've already secured two new contracts in California and another contract in Canada to provide the solution. Introducing the Pure 1 solution was a game changer in securing these contracts. It underscores our competitive edge and commitment to delivering innovative and secure technology solutions. By securing these contracts, we further reinforce the position of a recognized leader with US sales as indicators of our growing influence and expansion potential in North America and worldwide. As we mentioned before, we believe there is also an opportunity to enhance our US growth through strategic acquisitions of local electronic monitoring service providers with strong reputation and customer base in their respective local markets. We constantly monitor the market for potential acquisitions that could generate significant value by immediately expanding market presence and providing vertical integration synergies.

Joe: You are already into here.

Joe: Our trucks in California, another contract in Canada to provide the solution introducing a joint solution with a game changer in securing these contracts.

Ordan Trabelsi: Introducing the Pure One solution was a game-changer in securing these contracts, and other sponsors who commit to delivering an innovative and secure technology solution for securing these contracts. We further reinforce the position of the American Navy. We view our recent leaks as indicators of our current influence and expansion potential for North America and the world.

Joe: As far as the permit.

Joe: Our commitment to delivering innovative technology solutions.

Joe: Solutions with securing these contracts with firsthand first citizens recognize you are indicators of a project.

Joe: Fashion perpetual.

Joe: Worldwide.

Ordan Trabelsi: As we mentioned before, we believe there is also an opportunity to expand on the U.S. government's decision to acquire local electronic marketing service providers, which provide a reputation and customer base in their respective local markets. We constantly monitor the market for potential acquisitions that could generate significant value by immediately expanding market presence and providing vertical international synergies. Our acquisitions for about $3 million in 2016, to assess our position and determine the price-to-fishing value of over $30 million under Project Waze and has generated since then in California, although I will now turn to the finish.

Joe: I did mention before we believe there's also a whole series of exactly.

Joe: Digital acquisition.

Joe: We'll talk more feature.

Joe: It was fun.

Joe: And there were festival.

We constantly monitor the market position to judge that he didn't have made by these expanded market presence and provide vertical integration synergies are acquisition for us.

Ordan Trabelsi: Our acquisition for LCA in 2016 for $3 million is a great example. The successful acquisition has proven to be of great strategic value with over $30 million of new project wins it has generated since then in California alone. I'll now turn to the financials. During our previous conference call, I mentioned that we anticipated contributing to our financial results in subsequent quarters as our ongoing projects mature. I'm delighted to share that we've sustained positive EBITDA in each of the last four years from 2020 to 2023 and seen remarkable operating improvements, as evident by our five-year record EBITDA level this year, 2023, of $4.8 million. This is driven by a significant growth in company's revenue along with execution and corporate optimizing and cost cutting.

Speaker Change: It's good to see.

Speaker Change: Great.

Speaker Change: So that's my position.

Oh, great value with over $30 million of projects that generated citizen.

Speaker Change: Hello.

Speaker Change: I'll now.

Speaker Change: Yes.

Ordan Trabelsi: During our previous conference call, I mentioned that we anticipated contributing to our financial results in the next quarter as our ongoing projects mature. I'm delighted to share that we've been able to sustain positive EBITDA initially in the last four years, on a total of 20 to 23, and have seen remarkable upward improvement since our five-year record EBITDA level this year, 2023, of $4.8 million. This is driven by a significant growth in companies that are moving along with execution and corporate optimization and cost cutting.

Speaker Change: Okay.

Speaker Change: I mentioned earlier.

Speaker Change: Our financial results this quarter the ongoing projects.

Speaker Change: And the other children.

Speaker Change: The positive EBITDA.

Four years until 2023 and seen a marketable operating equipment.

Speaker Change: Our five year.

Speaker Change: Level this year.

Speaker Change: Three of $4 $8 million.

Speaker Change: Everybody have significant coverage already enrolled institution corporate optimizing.

Speaker Change: Okay.

Ordan Trabelsi: I'd also like to note that our annual revenue increased by 51% to a five-year record, $26.6 million annual revenues, with our IoT division being a primary growth engine. In perspective, while the global electronic monitoring market grows at approximately 11% per year, SuperCom IoT revenues outpaced global market growth by 4 to 5 folds in each of the past two years. This growth is a testament to the fact that the market prefers our solution over the alternatives. Revenue from developed countries continues to increase, with revenue from European countries increasing by 85% in 2023, reflecting the completion of our transition plan to transform our business from less stable emerging countries to more stable and consistent developed countries. The following is a comparison between the financial results of fiscal year 2023 and fiscal year 2022.

Ordan Trabelsi: I'd also like to note that their annual revenue increased by 51%, to a 5-year record of $26.6 million in annual revenues, with their IOT division being the primary equivalent. In perspective, while the global electronic monetary market grows at approximately 11% per year, Supercom IOT revenues outpace global market growth by 4-5% in each of the past two years. This quote is testament to the fact that the market prefers our solution over an alternative.

Speaker Change: Revenue increased one.

Speaker Change: Sure.

Speaker Change: At this point.

Speaker Change: They're hard to deal with it.

Speaker Change: The primary equipment.

Speaker Change: Our global electronic monitoring.

Speaker Change: 11% per year.

Speaker Change: Revenues at least.

Market growth in Florida.

Speaker Change: Each of the past two years.

Speaker Change: This growth is a testament to the fact that the market for our system.

Speaker Change: Got it.

Ordan Trabelsi: Revenue from developed countries continues to increase. Revenue from European countries increased by 85% in 2023, reflecting the competition and completion of our transition plan to transform our business from less stable emerging countries to more stable and consistently developed. The following is a comparison between the financial results of fiscal year 2023 and fiscal year 2022.

Speaker Change: Revenue from developed countries contingency fees.

And actually it's interesting the 85% is reflective.

Speaker Change: Reflective of competition the completion of our transition plan to transform our business from one less.

Speaker Change: Lastly, in the emerging disease to more stable and consistent developed interests.

Speaker Change: The following is a comparison between financial results fiscal year to 53 in.

Speaker Change: Absolutely that's what I'm trying to.

Ordan Trabelsi: Gross profit increased by 60% to $10.2 million compared to $6.4 million, which is a direct outcome of revenue growth, and the progress we've maintained across our projects, where margins simply enhance as projects mature. We achieved a $485,000 decrease in total operating expenses, including other and one-time expenses, through an operational optimization plan that was implemented gradually throughout 2023. R&D expenses amounted to $3.1 million. It decreased to $30,000 compared to the previous year, which indicates a maturation of our new technology launches made every year through potential optimization of the product structure. In addition, sales and marketing expenses of $9.2 million had decreased substantially now compared to the previous year.

Speaker Change: Gross profit of 50%, the $10 $2 million, which drive the outcome.

Ordan Trabelsi: Gross profit increased by 60% to $10.2 million compared to $6.4 million, which is a direct outcome of revenue growth and the progress we've made across our projects, where more than $6 billion are projects we've shared. We achieved a $485,000 decrease in total operating expenses, including other one-time expenses, through an operational transition plan that was implemented gradually throughout 2023. Our new expenses amounted to $3.1 million, a decrease of $37,000 compared to the previous year, which indicates a maturation of the new technology launched at the beginning of the year for potential optimization of the powertruck. And as I mentioned, it says the market is expected to go down to 2.2 million, a decrease of 4.7% compared to the previous year. Moreover,

Speaker Change: And the promise of Makena concert projects, where pharmacy.

Speaker Change: Sure.

Speaker Change: 85000 decrease in total operating expenses.

Speaker Change: Other one time expenses.

Speaker Change: Operational through this environment.

Speaker Change: Gradually throughout 2023, R&D expenses amounted to about $1 billion.

Speaker Change: Yeah.

Speaker Change: Compared to the previous year, which indicates the mature matures.

Speaker Change: Yeah sure no conversation the power structure.

Speaker Change: The mission, just keep marching, but fortunately no previous year. Moreover.

Ordan Trabelsi: Moreover, the general and administrative expenses increased by $275,000 to accommodate our management team expansion in the US as we increased focus in that region. The company had an operating loss of $3.3 million versus an operating loss of $6 million, resulting in a significant increase in our gross profit, and decreased operating expenses. The company's EBITDA improved by 2,350 percent, so 2,350 percent to $4.8 million compared to $0.2 million, reflecting the benefits of operating leverage associated with higher revenues deployed in new IoT projects, and continued progress on the phases of our ongoing projects. This achievement underscores our focus on sustainable growth and profitability.

Speaker Change: In general as an industry.

Speaker Change: That's interesting.

Speaker Change: I imagine you're experiencing in the U S is focusing in the region.

Speaker Change: Company at an operating loss of people working on it.

Speaker Change: Sure.

Speaker Change: Resulting from this.

Ordan Trabelsi: The general administration has increased by $275,000, accommodating our management team expansion in the U.S. as we increase focus in our region. The company at an operating loss of $3.3 million per person operating loss, resulting in a significant increase in gross profit and increased operating expenses. The company's EBITDA increased by... $23.50, [inaudible] to 4.8 million compared to 0.2 million, reflecting the benefits of operating energy systems that have been used to deploy new IoT projects and continue progress on the phases of our ongoing.

Speaker Change: A significant increase in gross profit.

Speaker Change: EBITDA grew by 12.

Speaker Change: 23, 50% for 2000.

Speaker Change: Two $4 8 million compared to zero.

Speaker Change: Reflecting the benefits operating system.

Speaker Change: While new Iot projects and continued progress on the phases.

Speaker Change: Yes.

Speaker Change: This achievement underscores our focus and growth and profitability.

Ordan Trabelsi: Our net loss improved to $4 million loss compared to $7.4 million loss, and our non-GAAP net profit improved by $5.5 million to $3.2 million compared to $2.3 million loss in the former year. Positive non-GAAP EPS improved to +$0.47 compared to negative non-GAAP EPS of -$0.61 in the former year period. Our cash and cash equivalents and restricted cash balances at the end of 2023 were $5.6 million compared to $4.5 million at the end of 2022.

Speaker Change: Our GAAP net loss of 34 million.

Speaker Change: Now our loss pick gypsum vulturine or loss and non-GAAP net profit grew by $5 5 million.

Speaker Change: $2 2 million compared to.

Speaker Change: It's about $3 million loss estimate for the year.

Ordan Trabelsi: This achievement underscores our focus on state growth and profitability. Our cop-debt loss improved to $4 million, and our loss to FedTube is $7.3 million. Our loss at a non-deficit profit improved by $5.5 million. 2.2 million compared to 2.09, and our loss is the next one.

Speaker Change: Hum.

Speaker Change: The positive 47 cents.

Speaker Change: They are negative.

Speaker Change: Oh 61 cents for one year period our.

Speaker Change: Cash and cash flow gains.

Speaker Change: $5 $6 billion compared to $4 5 million as noted we continue to improve our operating cash flow significantly from an operating cash is something that's been a formulary. So it's only one of $4 7 million.

Ordan Trabelsi: Our positive non-debt EPS has moved to positive $0.47 compared to negative $0.61 in the four-month year period. Our cash and cash flow gains for the state-to-count families at the end of 2023 were $5.6 million compared to $4.5 million at the end of 2022. As noted, we continue to improve our operating cash flow significantly from an operating cash flow of $9.4 million in 2021 to $4.7 million in 2022 and to only $2.4 million in 2023.

Ordan Trabelsi: As noted, we continue to improve our operating cash flow significantly from an operating cash flow from $9.4 million in 2021 to $4.7 million in 2022, and to only $2.4 million in 2023, decreasing our cash needs by 75% in the past two years alone, reflecting positive cash generation from ongoing projects. New projects sometimes require cash up front for manufacturing equipment, but then shifted to cash flow profitability throughout the life of the project. Also, SuperCom has completed a successful close of a $2.9 million public offering to support the company's continued innovation and growth initiative. A testament to the investment community's trust in our vision and strategic trajectory. In addition, the company has $162 million dedicated to the legacy business and allowing to invest in that as an IoT business.

Speaker Change: And so all of these stupid.

Speaker Change: Our cash needs at 73% in the past few years alone.

Speaker Change: Positive cash generation from me Archie.

Speaker Change: So that would require cash upfront to manufacturing.

Speaker Change: Shifting to cash flow profitability throughout the life of that at all.

Speaker Change: So that's been.

Speaker Change: The successful close support about $1 billion.

Speaker Change: The offering in the sports company, So continued innovation and growth initiatives.

Ordan Trabelsi: We've seen our cash needs at 75% in the past few years alone, reflecting positive cash generation from many old projects. New projects sometimes require cash to fund manufacturing equipment, but then shift into cash flow profitability throughout the life of the family. Also, Baxter has completed a successful close with a $2.9 million profit offering to support the company's continued innovation and growth initiatives. A testament to the investment community's trust in EdVision and strategic strategy. In addition, the company had $102 million, mainly pertaining to the legacy business alliance investment plan. That's it, thank you.

Speaker Change: And investor communities trusted strategic country.

Speaker Change: This is a bad one.

Speaker Change: Hours.

Speaker Change: The legacy business.

Speaker Change: Yes.

Speaker Change: Got.

Speaker Change: In closing, we're excited about the growth rates.

Ordan Trabelsi: In closing, we're excited about the growth we're experiencing and the growing demand for our products. After several years through which we transitioned from our legacy business to the IoT tracking of offenders business, we're happy to show the shift of rapid growth in revenue and profit. We believe that we're well-positioned for continued growth by capitalizing on many opportunities before us. These are being driven by multiple factors, including our strong presence in the US and European markets, the countercyclical nature of the electronic monitoring industry, the growing public policy shift to monitoring instead of incarceration, and the growing adaptation of domestic violence prevention solutions. We anticipate sustainable growth by further expanding our market share in the US and Europe. Our commitment to preserving technological advantage and our robust growth foundation remains steadfast. We continue to invest in these areas and hope to continue to grow accordingly.

Speaker Change: The bad times for several years through once we transition from our legacy business of Iot tracking vendors visit rapidly show the shift of rapid growth in revenue and profit.

Speaker Change: We believe that we're Robbins chief for continued growth by capitalizing on many opportunities for us.

Speaker Change: These are being driven by multiple factors, including our stock.

Speaker Change: Which applications in the U S European markets, the counter cyclical nature of electronic parts industry. The one public policy shifts in Washington.

Ordan Trabelsi: In closing, we're excited about the growth we're experiencing and about the growth in demand for our products. After several years of transitioning from our legacy business to the IoT tracking of the center's business, we're happy to show the shift of rapid growth in revenue and profit. We believe that we're well-positioned for continued growth by capitalizing on many opportunities in four areas. These are being driven by multiple factors, including a sharp rise in transportation in the U.S. and European markets, the counter-cyclical nature of the electronic financial industry, the growing public policy shift to monetary incentive incarceration, and the growing adoption of domestic finance and energy solutions.

Speaker Change: And the growth ambition.

Speaker Change: The solutions business.

Speaker Change: Let's take a closer to further extend our market share in the U S. Europe.

Speaker Change: Our competitive.

Speaker Change: Vantage and or a box of space remains best in Occupancies.

Speaker Change: Yes.

Speaker Change: Sure.

Speaker Change: To grow accordingly.

Ordan Trabelsi: With that, I'll turn the call over to the operator to open up for questions. Operator?

Speaker Change: With that I'll turn the call over to the operator.

Speaker Change: Well pause for questions.

Speaker Change: Sure.

Operator 2: Thank you. Ladies and gentlemen, if you wish to ask a question on today's call, you will need to press star then the number one on your telephone. If you're using a speakerphone, please pick up your handset before entering your request and speaking on the call. If your question has been answered and you wish to withdraw your request, you may do so by pressing the pound key. One moment, please, while we poll for questions. Thank you. We have a question from Matthew Galinko with Maxim Group. Your line is live.

Operator: Thank you. Ladies and gentlemen, if you wish to ask a question on today's call, you will need to press star then the number one on your telephone. If you're using a speakerphone, please pick up your handset before entering your request and speaking on the call. If your question has been answered and you wish to withdraw your request, you may do so by pressing the pound key. One moment, please, while we poll for questions. Thank you. We have a question from Matthew Galinko with Maxim Group. Your line is live.

Operator: Thank you, ladies and gentlemen, if you wish to ask a question on today's call you will need to press Star then the number one on your telephone.

Speaker Change: If youre using a speakerphone please pick up your handset before entering your request and speaking on the call.

Ordan Trabelsi: We anticipate this to take a close by further expanding our market share in the U.S. and Europe, are committed to preserving technological advantage, and our bus coach foundation remains best tasked with advancing these areas and helping to continue to grow accordingly. With that, I'll turn the call over to Dr. Rader, to open up the question.

Speaker Change: If your question has been answered and you wish to withdraw your request you may do so by pressing the pound key.

Speaker Change: One moment, please while we poll for questions.

Operator: Thank you. Ladies and gentlemen, if you wish to ask a question on today's call, you will need to press star, then the number one on your telephone. If you are using a speakerphone, please pick up your handset before entering your request and speaking on the call. If your question has been answered and you wish to withdraw your request, you may do so by pressing the pound button. One moment, please, while we poll for questions. Thank you. We have a question from Matthew Galinko with Maxim Group. Your line is live.

Thank you we have a question from Matthew <unk> with Maxim Group Your line is life.

Matthew Galinko: Hey, thanks for taking my question, and congrats on a strong 2023.

Matthew: Hey, Thanks for taking my question and congrats on a strong 2023.

Ordan Trabelsi: Thank you.

Matthew: Thank you I guess my first question is.

Matthew Galinko: I guess my first question is, you know, how does the pipeline look to you entering 2024 versus the pipeline entering 2023?

Matthew: Entering how does the pipeline look to you entering 2024 versus the pipeline entering 2023.

Matthew Evan Galinko: Hey, thanks for taking my question and congrats on a strong 2023. I guess my first question is, entering, you know, how does the pipeline look for you entering 2024 versus the pipeline entering 2023?

Ordan Trabelsi: The pipeline still looks strong in the past year and in this year. We have some projects that we've already bid on and some that were in late stages, like presentation stages or contract negotiation stages. We have other projects that are in the pipeline as opportunities that we expect to bid on or potentially win throughout the coming year or two. Things still look strong and we've been executing well on opportunities we had in 2021.

Matthew: I'd, probably still look strong in the past you entered this year with.

Speaker Change: Some projects have already been on some of them are in late stages in the presentation the stages of contract negotiation stages.

Speaker Change: We have other projects.

Ordan Trabelsi: The pipeline still looks strong for the past year and for this year. We have some projects that we've already been on and some that were in late stages, like presentation stages, or project negotiation stages. We have other projects that are in the pipeline as opportunities that we expect to bid on or eventually win throughout the coming years. Things still look strong, and we've been executing well. I'm obsessed with it in some way.

Speaker Change: That are in the pipeline.

Speaker Change: As opportunities that we expect to.

The bid on or are essentially going through.

Speaker Change: The coming here too.

Speaker Change: Things still look strong and we've been executing well opportunities we had I'm talking about.

Matthew Galinko: Got it. Okay. I guess with the launch of the, you know, single-piece products in the US and I guess North America, I think that was H2 2023. How has the pipeline evolved in terms of geography? Is it kind of a stronger US pipeline now, than, you know, obviously I think than a year ago, but how meaningfully has that changed the composition of the pipeline?

Speaker Change: Got it okay, and I guess with the launch of.

Speaker Change: The you know single piece products in the U S and I guess North America.

Matthew Evan Galinko: Got it. Okay. And I guess with the launch of the, you know, single piece products in the U.S. and, I guess, North America. I think that was the second half of twenty twenty three.

Speaker Change: I think that was the second half of 2023, how has the pipeline evolved in terms of geography is it.

Ordan Trabelsi: How has the pipeline evolved in terms of geography? Is it kind of a stronger U.S. pipeline now than, you know, obviously, I think than a year ago? But how meaningfully has that changed the composition of the pipeline?

Speaker Change: Is it kind of a stronger U S pipeline now.

Speaker Change: And obviously I think than a year ago, but but how meaningful has that changed the composition of the pipeline.

Matthew Evan Galinko: So in Europe, as I mentioned in the past, we continuously have been on national projects, and that would depend on the timelines of the different nations here in Europe and the projects they had. So we were dependent, in a way, on their timelines. We were continuously bidding. We had a very high win rate of over 65%.

Ordan Trabelsi: In Europe, as you mentioned in the past, we continuously bid on national projects, and that would depend on the timelines of the different nations here in Europe, and the projects they had. We were dependent in a way on their timelines, and we're continuously bidding. We had a very high win rate of over 65%. This year, as we expanded more into the US, we're also looking at opportunities that are not necessarily at a large national level. We're also looking at counties and states and resellers throughout the US. The pipeline in the US is growing. We still have much work to do to grow the pipeline in the US. The actual market in the US is three times that of Europe, according to market estimates.

Speaker Change: So in Europe.

Speaker Change: And then you mentioned in the past.

Speaker Change: We continuously.

Speaker Change: But the international projects that would depend on.

Speaker Change: On the timelines of the different nations here in Europe.

Speaker Change: Go ahead.

Speaker Change: So we were a defendant in a way on their timeline.

Speaker Change: We've been in we had a very high win rate.

Ordan Trabelsi: This year, as we expanded more into the U.S., we're also looking at opportunities that are not necessarily at a large national level. We're also looking at counties and states, but also looking at counties and states and resellers throughout the U.S. So the pipeline in the U.S. is growing. But we still have much work to do to grow the pipeline in the U.S. The actual market in the U.S. is three times that of Europe, according to market estimates.

This year as we expanded margins in the U S. We're also looking at opportunities that are not necessarily I don't.

Speaker Change: Ars National level also gonna counties and states.

Speaker Change: Yeah.

Speaker Change: We're also the guys are telling me in the days and be salaries throughout the U S filing in the U S is growing we still have much work to do to grow the pipeline in the U S.

Speaker Change: Actual market in the U S. Three times Europe, According to market estimates.

Ordan Trabelsi: And we're starting off with smaller projects, just like we did in Europe. We started off with Latvia and Lithuania, which were $100,000 projects. And so we grew it to projects like Finland and Denmark, which cost $3 to $4 million, and Sweden at $7 million, and then Romania at $32 million. So it's kind of like a ladder. We started with the smaller ones, you go to data traffic, and then you go to larger projects.

Ordan Trabelsi: We're starting off with the smaller projects, just like we did in Europe. We started off with Latvia and Lithuania, which were $100,000 projects. We grew it to projects like Finland and Denmark, which is $3 to 4 million, and Sweden, $7 million, and then Romania, $32 million. It's kind of like a ladder. We start smaller, you build a track record, then we go to larger projects. In the US, we're still at the earlier stages, but the pipeline in the US has certainly been growing since we started expanding our focus on the US market together with the Tier One product, which has already started getting rolled out, and it's received very good feedback from customers.

Speaker Change: And we're starting off with the smaller projects to stick with it and you can start off and walk him and saying you know what $300000 project. So the bridge projects.

Speaker Change: And then Mark was due to $4 million in Sweden, and a $7 million in Romania did you mine.

Speaker Change: No matter who started slower.

Speaker Change: But the larger projects in the U S. We're still early stages.

Speaker Change: The pipeline and you have to turn a good growing systems are expanding our focus on these markets.

Speaker Change: Product, which has already started to get rolled out and that's we think very good feedback from customers.

Ordan Trabelsi: In the U.S., we're still at the early stages, but the pipeline for the U.S. has certainly been growing since we started expanding our focus on the U.S. market, together with the Q1 product, which has already started being rolled out, and it's receiving very good feedback from customers.

Matthew Galinko: Got it. Thanks. Last question from me, and I'll jump back in the queue. You mentioned the declining use of cash from operations over the last three years. I guess.

Speaker Change: Got it thanks and last question for me and I'll jump back in the queue. You mentioned the declining use of cash from operations over the last three years.

Speaker Change: I guess the decline.

Ordan Trabelsi: The declining use of cash?

Matthew Evan Galinko: Got it. Thanks. And one last question for me, and I'll jump back in the queue.

Ordan Trabelsi: The declining use of cash?

Matthew Galinko: Yes. Do you expect, or can you point to a number on EBITDA maybe that you think gets you to break even? Like if 2023 was around 5 million EBITDA, you know, is it kinda linear, and you just expect to need to be maybe closer to 7 million EBITDA to be at a break-even cash from operations level? Or is it a little harder to pin down based on where you are in a project cycle?

Speaker Change: Yes do you.

Matthew Evan Galinko: You mentioned the declining use of cash from operations over the last three years. I guess... Yes. Can you point to a number on EBITDA maybe that you think gets you to break even, like if 2023 was around 5 million EBITDA? Is it kind of linear, and you just expect to need to be maybe closer to 7 million EBITDA to be at a break-even cash from operations level, or is it a little harder to pin down based on where you are in a project cycle? Yeah, it's a good question, but actually, you would

Speaker Change: With respect or can you can you point to a number on EBITDA, maybe that you think gets you to breakeven I guess 2023 was around $5 million, but that is.

Speaker Change: Is it kind of linear and you just expect to need to be maybe closer to $7 million EBITDA. It would be at a breakeven cash for operations level or is it a little harder to.

Speaker Change: To pin down based on where you are in a project cycle.

Ordan Trabelsi: Yeah. It's a good question, but actually the EBITDA over time should reflect our cash use. If I had 4, you know, 4 or 5 million EBITDA, that should certainly reflect the cash flow positivity. The reason why you see the gap between cash flows or operational cash flows and EBITDA is mainly because of the timelines and the cash needs of projects. Some of these projects up front, we have to manufacture a lot of equipment and then the cash comes in over the years. That movement throughout the project is what creates this gap. But over time, things seem to stabilize. If we didn't have continuously newer and larger projects adding on to our recurring revenue base, we wouldn't see this gap.

Speaker Change: Yeah, It's a good question, but actually the EBITDA overtime should reflect our cash use so far four 9 billion EBITDA that should certainly reflect the castle positivity. The reason why you see the gap between cash flows operational cash flows and EBITDA is also because mainly from the timelines and the cash.

Ordan Trabelsi: Yeah, it's a good question. But actually, EBITDA should reflect our cash use over time. So, if I have $4.5 million in EBITDA, that should certainly reflect cash flow productivity. The reason why you see the gap between cash flows or operational cash flows and EBITDA is mainly because of the timelines and the cash needs of projects. So, some of these projects probably have to manufacture a lot of equipment, and then the cash comes in over the years.

Speaker Change: Cash need that project. Some of these projects that probably would have to manufacture a lot of equipment.

Speaker Change: And then the cash comes in over the years about.

Ordan Trabelsi: So, that movement throughout the project is what creates this gap. But over time, things need to stabilize. And if we didn't have continuously newer and larger projects adding to our recurring revenue base, we wouldn't see this gap. So, if things kind of stabilize on the same project for a while, you would see the cash flow settle closer and closer to EBITDA. So, it's hard to give you a specific number because it depends on where you are.

Speaker Change: Movement throughout the project is what creates this gap, but over time things can.

Speaker Change: Can stabilize and if we didn't have continuously newer larger projects, adding onto our recurring revenue base. We wouldnt see this gap so things kind of stabilize on the same project for for a while you would see the capsules, so closer and closer to EBITDA.

Ordan Trabelsi: If things kinda stabilize on the same project for a while, you would see the cash flows get closer and closer to EBITDA. It's hard to give you a specific number because it depends on where. It is good to know that EBITDA does reflect, in a way, a proxy for the past potential for creation of the company.

Speaker Change: Hard to give you a specific number because it depends on where but but it is it's not that it doesn't reflect.

Matthew Evan Galinko: But it is good to know that EBITDA does reflect, in a way, obviously for the past potential creation of the company. Got it. Thank you.

Speaker Change: In a way.

Oxy further past potential for creation of the company.

Matthew Galinko: Got it. Thank you.

Speaker Change: Got it thank you.

Speaker Change: Okay.

Operator: Thank you. Once again, if you have any remaining questions or comments, please press the star key followed by 1 on your phone at this time. Okay, we currently have no further questions on the line at this time, so I will pass the call back to Mr. Trabelsi for any closing remarks. Oh, sorry, we have ads. Oh, no. Do apologize, sir. Continue.

Operator 2: Thank you. Once again, if you have any remaining questions or comments, please press the star key followed by one on your phone at this time. Okay, we currently have no further questions on the line at this time, so I will pass the call back to Mr. Trabelsi for any closing remarks. Oh, sorry. Do apologize, sir. Continue.

Operator: Thank you. Once again, if you have any remaining questions or comments, please press the star key followed by one on your phone at this time. Okay, we currently have no further questions on the line at this time, so I will pass the call back to Mr. Trabelsi for any closing remarks. Oh, sorry. Do apologize, sir. Continue.

Speaker Change: Thank you once again, if you have any remaining questions or comments. Please press to skirt. The starkey followed by one on your phone at this time.

Ordan Trabelsi: Okay. We currently have no further questions on the line at this time, so I will pass the call back to Mr. Trabelsi for any closing remarks.

Ordan Trabelsi: Oh, sorry, we have thought.

Ordan Trabelsi: No.

Ordan Trabelsi: I do apologize sorry continue.

Operator: If we have any more questions, we can ask them.

Ordan Trabelsi: If we have any more questions, we can take them.

Ordan Trabelsi: Do you have any more questions, we can take them.

Operator 2: Okay. Yeah, we do have a late question, sir, from Jay Giatoshi, who is an investor. Your line is live.

Operator: Okay. Yeah, we do have a late question, sir, from Jay Giatoshi, who is an investor. Your line is live.

Okay.

Operator: Okay, we do have a question, sir, from Jay Giotoshi, who is an investor. Your line is...

Speaker Change: Yeah, we do happen they question Sir from J G. Toshi, who is an investor Your line is life.

Jay Giotoshi: Yeah, hi, congratulations again on a great quarter and a great year. Question about your intellectual property. I see that you're using AI. Is that something you could patent? in order to prevent other competitors from entering your market? Thanks, Jay. So we do have.

Jay Giatoshi: Yeah, hi. Congratulations again on a great quarter and a great year. Question around your intellectual property. I see that you're using AI. Is that something you could patent in order to prevent other competitors from entering your market?

[Shareholder]: Yeah, hi. Congratulations again on a great quarter and a great year. Question around your intellectual property. I see that you're using AI. Is that something you could patent in order to prevent other competitors from entering your market?

Speaker Change: Yeah, Hi, congratulations again on a great quarter and great year.

Speaker Change: A question around your intellectual property I see that Youre using AI.

Speaker Change: Is that something you could patent.

Speaker Change: In order to prevent other competitors from entering your market.

Ordan Trabelsi: Thanks, Jay. We do have in the company over 100 different patents, and we've started to invest a lot of resources in the past on writing these patents. Lately, we've been so busy on our growth and our expansion that we haven't stopped as much to start writing new patents. Our AI capabilities do have unique application to our specific market, and after we deploy them and we see their effectiveness, it's something that we can consider if we wanna utilize, like we've done in the past, patents.

Speaker Change: Thanks Jack.

Speaker Change: We do have the company over 100 different patents and we've stuck with it that's a lot of our lotteries.

Ordan Trabelsi: Thanks Jay. So we do have a company with over 100 different patents, and we've invested a lot of resources in the past in writing patents. Lately, we've been so busy with our growth and our expansion that we haven't stopped as much to start writing new patents. Our AI capabilities do have unique applications in our specific market. And after we deploy them, and we see their effectiveness, it's something that we can consider if we want to utilize them in the past.

Speaker Change: A lot of resources a pass on.

Speaker Change: So I think these patents lately, we've been so busy on our growth and our expansion that we haven't stopped as much to just start writing a new patents our AI capabilities.

Do you have unique application specific market and.

Speaker Change: After after we deploy that and we will see their effectiveness.

Speaker Change: That would be considered and consider if we want to utilize like we've done in the past that.

Jay Giatoshi: Okay. Thank you.

[Shareholder]: Okay. Thank you.

Speaker Change: Okay. Thank you.

Speaker Change: Okay.

Operator: Thank you. Once again, if you have any final questions, please indicate so now by pressing star 1 on your phone. Okay. I believe we have a question from Matthew Galinko. Again, Matthew, sir, your line is live.

Operator 2: Thank you. Once again, if you have any final questions, please indicate so now by pressing star one on your phone. Okay, I believe we have a question from Matthew Galinko. Again, Matthew, sir, your line is live.

Operator: Thank you. Once again, if you have any final questions, please indicate so now by pressing star one on your phone. Okay, I believe we have a question from Matthew Galinko. Again, Matthew, sir, your line is live.

Speaker Change: Thank you.

Speaker Change: Once again, if you have any final questions. Please indicate so now by pressing star one on your phone.

Speaker Change: Okay. I believe we have a question from Matthew killing cool right.

Matthew: Again Mathew Sir your line is live.

Matthew Evan Galinko: Oh, sorry, I didn't have any follow-up questions.

Matthew Galinko: Oh, sorry. I didn't have any follow-up questions.

Matthew: Oh, sorry, I didn't have any follow up questions.

Operator 2: Oh, apologies, sir. It was still on the line. Thank you. Okay, sir, we currently have no further questions at this time.

Operator: Oh, apologies, sir. It was still on the line. Thank you. Okay, sir, we currently have no further questions at this time.

Operator: Apologies, sir. I was still on the line. Thank you. Okay, sir. We currently have no further questions at this time.

Speaker Change: Apologies, Sir if I'm still on the line. Thank you.

Speaker Change: Okay. So if we currently have no further questions at this time.

Ordan Trabelsi: All right, I'd like to thank all of you for participating in today's call. If you're interested in Supercom, we wish you a happy Passover. Please contact us directly if you have additional questions. We look forward to sharing our progress with you on our next conference calls, filings, and price releases. Thank you very much, and have a good day.

Ordan Trabelsi: All right. I'd like to thank all of you for participating in today's call if you're interested in SuperCom. We wish you a happy Passover. Please contact us directly if you have additional questions. We look forward to sharing our progress with you on our next conference calls, filings, and press releases. Thank you very much, and have a good day.

Speaker Change: Right.

Speaker Change: Thank all of you to participate in today's call and your interest in Super Bowl.

Speaker Change: I wish you a happy Passover please contact us directly if you have additional questions. We look forward to sharing our promised would do.

Speaker Change: On our next conference calls filings and press releases. Thank you very much.

Speaker Change: Yes.

Operator: Thank you, ladies and gentlemen. This does conclude today's conference call. You may disconnect your lines at this time and have a wonderful day. We thank you for your participation.

Operator 2: Thank you, ladies and gentlemen. This does conclude today's conference call. You may disconnect your lines at this time and have a wonderful day. We thank you for your participation.

Operator: Thank you, ladies and gentlemen. This does conclude today's conference call. You may disconnect your lines at this time and have a wonderful day. We thank you for your participation.

Speaker Change: Thank you ladies and gentlemen, this does conclude today's conference call. You may disconnect. Your lines at this time and have a wonderful day, we thank you for your participation.

Speaker Change: Yeah.

Speaker Change: Okay.

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