Q2 2024 Digital Ally Inc Earnings Call
Speaker Change: Ladies and gentlemen, this is the operator. Your call will begin momentarily. Thank you for your patience.
Operator: Ladies and gentlemen, this is the operator. Your call will begin momentarily. Thank you for your patience. Good morning ladies and gentlemen and welcome to the Digital Ally second quarter earnings conference call. At this time all lines are in a listen only mode.
Operator: Ladies and gentlemen, this is Theo Perter. Your call will begin momentarily. Thank you for your patience.
Speaker Change: Good morning ladies and gentlemen and welcome to the Digital Ally second quarter earnings conference call. At this time all lines are in a listen-only mode.
Operator: Good morning, ladies and gentlemen, and welcome to the Digital Ally Second Quarter Earning Sponsored Call. At this time, Alliance on the Lawson only mode. Following presentation of Aconda, the question, and insert session, is that any tangent this call will require immediate assistance, please press that zero for the operator.
Speaker Change: Following presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on August 19, 2024.
Operator: Following presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on August 19th, 2024, conference call may contain forelooking statements within the meeting of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We may use words and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters, rather they represent forelooking statements.
Operator: This call is being recorded on August 19, 2024.
Speaker Change: This conference call may contain forelooking statements within the meeting of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
Operator: This conference call may contain four looking statements within the meeting of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We may use words and other expressions that are predictions of or indicate future events and trends, and that do not relate to historical matters; rather, to represent forward-looking statements. These four looking statements are based largely on our expectations or forecast of future events, can be affected by inaccurate assumptions and a subject of various business risks and known and unknown uncertainties, a number of which are beyond or control.
Operator: These forelooking statements are based largely on our expectations or forecast of future events, can be affected by inaccurate assumptions and are subject to various business risks and known and unknown uncertainties, a number of which are beyond our control. Therefore, actual results could affirmatively leave from the forward-looking statements expressed in this conference call, and readers are cautioned not to place undue reliance on such forward-looking statements. We generally do not publicly update or revise any for the King's Statement, in this country. [inaudible] Whether as a result of new information, future events are auto-wired. There can be no assurance that forelooking statements contained in this document will, in fact, transfer or prove to be accurate.
Speaker Change: We may use words and other expressions that are predictions of or indicate future events and trends, and that do not relate to historical matters, rather, they represent forelooking statements.
Speaker Change: These forelooking statements are based largely on our expectations or forecast of future events, can be affected by inaccurate assumptions, and are subject to various business risks and known and unknown uncertainties, a number of which are beyond our control.
Speaker Change: Therefore, actual results could affirmatively lead from the forward-looking statements expressed in this conference call, and readers are cautioned not to place undue reliance on such forward-looking statements.
Operator: Therefore, actual results could affirmatively differ from the four looking statements expressed in this conference call, and readers are cautioned not to place undue reliance on such forward-looking statements. We generally do not publicly update or revise any forward-looking statements expressed in this conference call, whether as a result of new information, future events, or otherwise. There can be no assurance that four looking statements contained in this document will in fact transfer or prove to be accurate.
Speaker Change: We generally do not publicly update or revise any forelooking statements expressed in this conference call, whether as a result of new information, future events, or otherwise.
Speaker Change: There can be no assurance that forward-looking statements contained in this document will in fact transfer or prove to be accurate. I will now like to turn the conference over to Stan Ross, CEO. Please go ahead.
Stanton Ross: I will now like to turn the conference over to Stan Russ. CEO, please go ahead.
Operator: I would now like to turn the conference over to Stanton Ross, CEO, please go ahead. Thank you. Thanks, everybody, for joining us today.
Stan Ross: Thank you. Thanks, everybody, for joining us today. With me is Brody Green, the company's president. He'll do a high-level overview of our numbers and then
Stanton Ross: Thank you.
Stanton Ross: With me is Brody Green, the company's president. He'll do a high-level overview of our numbers, and then we'll start getting into answering a lot of the emails and text messages we've had over the last several weeks concerning the status of the merger of Custom Entertainment with Cloverleaf Group. And so a lot's happened on that that we'd like to share with you and some timing issues concerning the first round of dividends and then the second round of stock dividends as well. And maybe give you just some insight on associated value that this entails in regards to Digital Ally and its shareholders. So with that being said, I will pass the call over to Brody.
Stanton Ross: Thanks, everybody, for joining us today. With me is Brody Green, the company's president.
Stanton Ross: He'll do a high-level overview of our numbers, and then we'll start getting into answering a lot of the emails and text messages we've hacked over the last several weeks concerning the status of the merger of customer entertainment with the Cloverleaf Group. A lot's happened on that that we like to share with you, and some timing issues concerning the first round of dividends and then the second round of stock dividends as well. And maybe give you just an insight on an associated value that this entails in regards to Digital Ally and its shareholders.
Speaker Change: We'll start getting into answering a lot of the e-mails and text messages we've had over the last several weeks concerning the status of the merger of Custom Entertainment with
Speaker Change: Cloverleaf group and so a lot's happened on that that we like to share with you and some timing issues concerning the first round of dividends and then the second round of stock dividends as well
Speaker Change: And maybe give you just some insight on associated value that this entails in regards to digital alliance and its shareholders. So with that being said, I will pass the call over to Brody.
Theo Perter: Ladies and gentlemen, this is Theo Perter.
Operator: Ladies and gentlemen, this is Theo Perter. Your call will begin momentarily. Thank you for your patience.
Operator: Your call will begin momentarily.
Brody Green: Thanks, Dan. Like you said, I'll just do a brief overview of the financials. The greater detail will be in the Form 10-10Q up on the SEC's website. Feel free to take a deep dive in there just for further details.
Brody Green: So, with that being said, I will pass the call over to Brody. Yeah, thanks, Dan. Like you said, I'll just do a brief overview of the financials. Greater detail in the form 10-Q up on the SEC's website. Feel free to take a deep dive in there just for further details.
Operator: Thank you for your patience.
Brody Green: Thanks, Dan. Like you said, I'll just do a brief overview of the financials. Greater detail will be in the Form 10-10Q up on the SEC's website.
Speaker Change: Feel free to take a deep dive in there just for further details. I think the more pressing conversation is going to be regarding the business combination so we'll get to that as soon as we can.
Brody Green: I think the more pressing conversation is going to be regarding the business combination, so we'll get to that as soon as we can. So the current assets of the company at June 30th, 2024 were $14.2 million, down about 1.3 from year-end. Similarly, with the total assets, that was at $43.3 million compared to $47 million, on December 31st. Total current liabilities bumped up to $27.6 million.
Brody Green: I think the more pressing conversation is going to be regarding the business combination. So we'll get to that as soon as we can. So the current assets of the company at June 30th, 2024 were 14.2 million, down about 1.3 from year end. Similarly, with total assets, I was at 43.3 million compared to 47 million on December 31st. Total current liabilities bumped up to 27.6 million. The chunk of that is about a little less than 4 million. The Tribunal, the warrant derivative liabilities, which is just the Black-Scholes value of the warrants, some from earlier transactions and some from the June 25th transaction as well.
Speaker Change: So the current assets of the company at June 30th, 2024 were $14.2 million.
Speaker Change: Down about 1.3 from year-end. Similarly, with the total assets, that was at $43.3 million compared to $47 million.
Speaker Change: on December 31st. Total current liabilities bumped up to $27.6 million. A chunk of that is about a little less than $4 million attributable to the warrant derivative liabilities, which is just
Brody Green: A chunk of that is about a little less than $4 million attributable to the warrant derivative liabilities, which is just... The Black-Scholes value of the warrants, some from earlier transactions and some from the June 25th. Transaction as well. It's a non-cash liability, but nonetheless liability on the book.
Speaker Change: The Black-Scholes value of the warrants, some from earlier transactions and some from the June 25th.
Speaker Change: transaction as well. It's a non-cash liability but nonetheless liability on the books.
Brody Green: That's a non-cash liability, but nonetheless the liability on the books. Total liabilities is 40.3 million. Now you can see our contract liabilities sitting on the balance sheet were 3.1 million as current portion and about 7 million for long term. That's our deferred revenue for, you know, R3 inside your contracts. So those are really going to find their way up to the P&L as those maturing and come due. Total stockholders' equity of the Q2 was a little over $3 million.
Speaker Change: Total liabilities is $40.3 million.
Brody Green: Total liabilities is $40.3 million. Now you can see our contract liabilities sitting on the balance sheet where 3.1 million is current portion and about 7 million, for long term, that's our deferred revenue, for our three and five-year contracts. So that's.
Speaker Change: Now you can see our contract liabilities sitting on the balance sheet. We're 3.1 million in this current portion and about 7 million for long term. That's our deferred revenue.
Operator: Good morning, ladies and gentlemen, and welcome to the Digital Ally Second Quarter Earning Sponsored Call at this time, Alliance on the Lawson only mode.
Operator: Good morning, ladies and gentlemen, and welcome to the Digital Ally Second Quarter Earning Sponsored Call at this time, Alliance on the Lawson only mode. Following presentation of Aconda, the question, and insert session, is that any tangent this call will require immediate assistance, please press that zero for the operator.
Speaker Change: for, you know, the R3 and 5-year contracts. So that's, those are really gonna find their way up to the, find their way over to the P&L as those mature and come due.
Brody Green: Those are really going to find their way up to the, find their way over to the P&L as those mature and come due. Total stockholders' equity of the end of Q2 was a little over $3 million. So that wraps up the balance sheet. Again, further details you'll find on the queue. And then for the P&L side, our total revenue for the quarter was $5.6 million, with a total gross profit of $242,000.
Operator: Following presentation of Aconda, the question, and insert session, is that any tangent this call will require immediate assistance, please press that zero for the operator.
Speaker Change: Total stockholders' equity of the end of Q2 was a little over $3 million.
Operator: This call is being recorded on August 19, 2024.
Operator: This call is being recorded on August 19, 2024. This conference call may contain four looking statements within the meeting of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934. We may use words and other expressions that are predictions of or indicate future events and trends, and that do not relate to historical matters rather to represent four looking statements. These four looking statements are based largely on our expectations or forecast of future events can be affected by inaccurate assumptions and a subject of various business risks and known and unknown uncertainties, a number of which are beyond or control.
Speaker Change: So that wraps up the balance sheet. Again, further details that you'll find on the queue. And then for the P&L side, our total revenue for the quarter was 5.6 million.
Brody Green: So that wraps up the balance sheet. Again, further details that you'll find on the Q. And then for the P&L side, our total revenue for the quarter was $5.6 million, with the total gross profit of $242,000. We are not operating the loss of $3.9 million with a net loss of $5 million. And then I have a net loss per share of a and $1.74 cents. And then our current, at the end of Q2, our current shares outstanding were $3.5 million.
Operator: This conference call may contain four looking statements within the meeting of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934. We may use words and other expressions that are predictions of or indicate future events and trends, and that do not relate to historical matters rather to represent four looking statements. These four looking statements are based largely on our expectations or forecast of future events can be affected by inaccurate assumptions and a subject of various business risks and known and unknown uncertainties, a number of which are beyond or control.
Operator: Therefore, actual results could affirmatively from the four looking statements expressed in this conference call, and readers or caution not to place under reliance on such or looking statements. We generally do not publicly update or revise any four looking statements expressed in this conference call, whether as a result of new information, future events are otherwise.
Speaker Change: with a total gross profit of $242,000.
Speaker Change: We had an operating loss of $3.9 million.
Brody Green: We had an operating loss of $3.9 million, with a net loss of, 5 million, and then the net loss per share of a... $1.74, and then our current. At the end of Q2, our current shares outstanding were $3.5 million. I think that's a really a summary.
Operator: Therefore, actual results could affirmatively from the four looking statements expressed in this conference call, and readers or caution not to place under reliance on such or looking statements.
Operator: There can be no assurance that four looking statements contained in this document will in fact transfer or prove to be accurate.
Speaker Change: with a net loss of five million.
Speaker Change: and then the net loss per share of a
Speaker Change: $1.74
Speaker Change: And then our currents.
Speaker Change: At the end of Q2, our current share is outstanding. We're 3.5 million.
Speaker Change: Amen.
Brody Green: And I think that's really a summary. One good thing to call out is our deferred revenue continues to grow. I think it's up to a little over $10.5 million at this point, I believe. So again, continue to grow quarter over quarter. And it'll continue to be recognized in the quarter in which it's renewed. So this continues to grow and hit the P&L just every year moving forward. And as that balance that increases, that's pretty much the goal of what we're trying to do with the subscription model. So it continues to work. And I know we had a few big events this quarter on the entertainment side as well, with them having their festival at the end of June.
Speaker Change: I think that's a really a summary one good thing to call out is our deferred revenue continues to grow I think it's up to
Brody Green: One good thing to call out is our deferred revenue continues to grow. I think it's up to, It's a little over $10.5 million at this point, I believe. So again, continuing to grow quarter over quarter, and it'll continue to be recognized. In the quarter in which it's renewed.
Speaker Change: It's a little over ten and a half million at this point, I believe, so again continuing to grow quarter over quarter and it'll continue to be recognized.
Operator: We generally do not publicly update or revise any four looking statements expressed in this conference call, whether as a result of new information, future events are otherwise.
Speaker Change: in the quarter in which it's renewed. So it's continued to grow and hit the P&L just every year moving forward. And as that balance increases, that's pretty much the goal of what we're trying to do with the subscription model.
Brody Green: So this continue to grow and, hit the P&L just every year moving forward and as that balance increases. It's pretty much the goal of what we're trying to do with the subscription model. So it continues to work, and I know we had a few big events this quarter on the entertainment side as well with them having their festival at the end of June, and I'll let Stan touch on that along with a few other items. So I'll turn it back over to Stan. Good. Thanks, Brody.
Operator: There can be no assurance that four looking statements contained in this document will in fact transfer or prove to be accurate.
Speaker Change: It continues to work, and I know we had a few big events this quarter on the entertainment side as well with them having their festival at the end of June, and I'll let Stan touch on that along with a few other items. So I'll turn it back over to Stan. Good. Thanks Brody.
Stan Ross: I will now like to turn the conference over to Stan Russ.
Stan Ross: I will now like to turn the conference over to Stan Russ. CEO, please go ahead. Thank you. Thanks everybody for joining us today. With me is Brody Green, the company's president. He'll do a high-level overview of our numbers and then we'll start getting into answering a lot of the emails and text messages we've hacked over the last several weeks concerning the status of the merger of customer entertainment with the Cloverleaf Group.
Stan Ross: CEO, please go ahead.
Stanton Ross: And I'll let the stand touch on that, along with a few other items. So I'll turn it back over to Stan. Good. Thanks, Brody. Yeah. A lot of the calls and emails, even text messages, have been around the big business combination agreement where Digital Ally is selling one of its subsidiaries, which is Customer Entertainment to Cloverly Capital. They are currently a NASDAQ company. I just looked up their stock. It's still trading nicely at $12.40. We've already done the record date for the first round of dividends. So there will be approximately almost 2.3 million shares of Clover that will be sent out to the Digital Ally shareholders.
Stan Ross: Thank you.
Stan Ross: Thanks everybody for joining us today.
Speaker Change: A lot of the calls and emails, even text messages, have been around the big business combination agreement where Digital Ally is...
Stanton Ross: A lot of the calls and emails, even text messages, have been around the big business combination agreement where Digital Ally is, selling one of its subsidiaries, which is Custom Entertainment, to Cloverleaf Capital. They are currently a NASDAQ company. I just looked up their stock. It's still trading nicely, $12.40.
Speaker Change: selling one of its subsidiaries, which is Custom Entertainment, to Cloverleaf Capital. They are currently a NASDAQ company. I just looked up their stock. It's still trading nicely, $12.40.
Stan Ross: A lot's happened on that that we like to share with you and some timing issues concerning the first round of dividends and then the second round of stock dividends as well. And maybe give you just an insight on on an associated value that this entails in regards to Digital Ally and its shareholders.
Speaker Change: We've already done the record date for the first round of dividends, so there will be approximately almost 2.3 million shares of Clover that will be sent out to the Digital Ally shareholders.
Stanton Ross: We've already done the record date for the first round of dividends, so there will be approximately almost 2.3 million shares of Clover that will be sent out to the Digital Ally shareholders. That's the equivalent of, you know, just using today's price, let's just say after the merger is completed and the price, let's say, stays where it's at, that'd be almost a $7.70 stock dividend that those shareholders of record will be getting.
Brody Green: With me is Brody Green, the company's president.
Brody Green: So with that being said, I will pass the call over to Brody.
Speaker Change: Uh, that's...
Stanton Ross: That's the equivalent, you know, just using today's price. Let's just say after the merger is completed and the price, let's say it stays where it's at. They'd be almost $7.70 stock dividend that those shareholders of record will be getting. And the shareholders of record were those that were shareholders at the end of business on August the 12th. So last week. So that should be happening. What will also transpire is Digital Ally itself will then be receiving and holding on to almost 7.6 million shares. And so you can do the back of the envelope math on that.
Speaker Change: the equivalent of, you know, just using today's price, let's just say, let's say after the
Brody Green: Yeah, thanks, Dan. Like you said, I'll just do a brief overview of the financials. Greater detail in the form 10Q up on the SEC's website. Feel free to take a deep dive in there just for further details. I think the more pressing conversation is going to be regarding the business combination. So we'll get to that as soon as we can. So the current assets of the company at June 30th, 2024 were 14.2 million down about 1.3 from year end.
Brody Green: He'll do a high-level overview of our numbers and then we'll start getting into answering a lot of the emails and text messages we've hacked over the last several weeks concerning the status of the merger of customer entertainment with the Cloverleaf Group. A lot's happened on that that we like to share with you and some timing issues concerning the first round of dividends and then the second round of stock dividends as well.
Speaker Change: the merger is completed and the price, let's say, stays where it's at, that'd be almost a $7.70.
Speaker Change: and I'm going to talk about the stock dividend that those shareholders of record will be getting. And the shareholders of record were those that were shareholders at the end of business on August the 12th, so last week. So that should be happening.
Stanton Ross: And the shareholders of record were those that were shareholders at the end of business on August the 12th, so last week. So that should be happening. What will also transpire is Digital Ally itself will then be receiving and holding on to almost 7.6 million shares. And so you can do the back of the envelope math on that.
Brody Green: And maybe give you just an insight on on an associated value that this entails in regards to Digital Ally and its shareholders.
Brody Green: So with that being said, I will pass the call over to Brody.
Speaker Change: What will also transpire is Digital Ally itself will then be receiving and holding on to almost 7.6 million shares.
Brody Green: Yeah, thanks, Dan.
Speaker Change: And so, you can do the back of the envelope math on that. It's an astronomical number and a lot of value that comes into Digital Ally, especially if the stock holds strong where it's at. And eventually, the
Brody Green: Like you said, I'll just do a brief overview of the financials.
Brody Green: Similarly with total assets, I was at 43.3 million compared to 47 million on December 31st. Total current liabilities bumped up to 27.6 million. The chunk of that is about a little less than 4 million. The Tribunal, the warrant derivative liabilities, which is just the black sholes value of the warrants, some from earlier transactions and some from the June 25th transaction as well. That's a non-cash liability, but nonetheless the liability on the books.
Stanton Ross: It's an astronomical number and a lot of value that comes into Digital Ally, especially if the stock holds strong where it's at. And eventually the goal is to go ahead and dividend out those shares as well. There'll be a new record date established, and those will be sent out in about a six-month period of time as well. So now the timing, those that have been following closely know that Clover got their SEC approval of the registration, so it's active. They are now having their shareholder vote to complete this transaction. I want to say it's at 10 o'clock Eastern time this coming Friday.
Stanton Ross: It's an astronomical number and a lot of value that comes into Digital Ally, especially if the stock holds strong where it's at. And eventually the goal is to go ahead and dividend that dividend out those shares as well. There'll be a new record date established, and those will be sent out in about a six-month period of time as well. So now the timing. Those have been following closely. Know that Clover got their SEC approval of the registration. So it's active. They are now having their shareholder vote to complete this transaction. I want to say it's at 10 o'clock Eastern Time this coming Friday.
Brody Green: Greater detail in the form 10Q up on the SEC's website.
Brody Green: Feel free to take a deep dive in there just for further details.
Speaker Change: The goal is to go ahead and dividend out those shares as well.
Brody Green: I think the more pressing conversation is going to be regarding the business combination.
Speaker Change: They'll be a new record date established
Speaker Change: and those will be sent out.
Speaker Change: in about a six-month period of time as well.
Speaker Change: So now, the timing...
Speaker Change: Those who have been following closely know that Clover got their SEC approval of the registration. So it's active. They are now having their shareholder vote to complete this transaction. I want to say it's at 10 o'clock Eastern Time this coming Friday.
Brody Green: So we'll get to that as soon as we can.
Brody Green: So the current assets of the company at June 30th, 2024 were 14.2 million down about 1.3 from year end.
Brody Green: Total liabilities is 40.3 million. Now you can see our contract liabilities sitting on the balance sheet were 3.1 million as current portion and about 7 million for long term. That's our deferred revenue for, you know, R3 inside your contracts. So those are really going to find their way up to the P&L as those maturing and come due. Total stockholders' equity of the Q2 was a little over $3 million.
Brody Green: Similarly with total assets, I was at 43.3 million compared to 47 million on December 31st.
Speaker Change: Once that is completed and we continue to move forward on
Stanton Ross: Once that is completed and we continue to move forward on cross the T's and dot knives and making sure all the things that have been agreed upon in the business combination agreement are there. Then we'll move forward the following week into completing that transaction. So December of 22, and then started going down this path and negotiating in about March of 23, actually entered into an agreement. I want to say it was in June of 23. So just been a long, long road that I'm excited about the prospects.
Stanton Ross: Once that is completed and we continue to move forward on cross the Ts and dot and Is and making sure all the things that have been agreed upon in the business combination agreement are there, then we'll move forward the following week into completing that transaction. So while this has been a very, very, very long haul, as you recall, we sort of announced this project back in December of 22, and then started going down this path and negotiating in about March of 23, actually entered into an agreement, I want to say it was in June of 23.
Brody Green: Total current liabilities bumped up to 27.6 million.
Speaker Change: Cross the T's and dotting I's and making sure all the
Speaker Change: things that have been agreed upon in the business combination.
Speaker Change: agreement are there, then we'll move forward the following week.
Brody Green: The chunk of that is about a little less than 4 million.
Speaker Change: into completing that transaction.
Speaker Change: Well, this has been a very, very, very long haul. As you recall, we sort of announced this project back in December of 22, and then started going down this path and negotiating in about March of 23, actually entered into an agreement, I want to say it was in.
Brody Green: The Tribunal, the warrant derivative liabilities, which is just the black sholes value of the warrants, some from earlier transactions and some from the June 25th transaction as well. That's a non-cash liability, but nonetheless the liability on the books. Total liabilities is 40.3 million.
Brody Green: So that wraps up the balance sheet. Again, further details that you'll find on the Q. And then for the P&L side, our total revenue for the quarter was $5.6 million with the total gross profit of $242,000. We are not operating the loss of $3.9 million with a net loss of $5 million. And then I have a net loss per share of a and $1.74 cents. And then our current, at the end of Q2, our current shares outstanding were $3.5 million.
Speaker Change: June of 23. So it's just been a long, long road, but I'm excited about the prospects.
Stanton Ross: So it's just been a long, long road, but I'm excited about the prospects, and the value that it brings into Digital Ally and, you know, for its shareholders and the opportunity for clarity on the companies as well. So, you know, it puts a situation where one of the ticketing platform and the festival platform is now out there on its own. So you essentially have now video solutions and the medical billing company that are a part of Digital Ally.
Speaker Change: and the value that it brings in to Digital Ally and you know for its shareholders and the opportunity for clarity on the companies as well so
Stanton Ross: and the value that it brings into Digital Ally and Ford shareholders in the opportunity for clarity on the companies as well. It puts the situation where one of the ticketing platform and the festival platform is now out there on its own. So you essentially have now video solutions in the medical billing company that are a part of Digital Ally, and it makes it a little clearer to define, you know, Digital Ally and who they are by getting this, getting the customer entertainment moved out. So excited about that, excited for the value. I'm sure that both companies will be reporting the outcome of the votes.
Speaker Change: You know, it puts a situation where one of the ticketing platform and the festival platform is now out there on its own.
Speaker Change: So you essentially have now video solutions and the medical billing company.
Brody Green: And I think that's a really a summary. One good thing to call out is our deferred revenue continues to grow. I think it's up to a little over $10.5 million at this point, I believe. So again, continue to grow quarter over quarter. And it'll continue to be recognized in the quarter in which it's renewed. So this continues to grow and hit the P&L just every year moving forward. And as that balance that increases, that's pretty much the goal of what we're trying to do with the subscription model. So it continues to work. And I know we had a few big events this quarter on the entertainment side as well with them having their festival at the end of June.
Brody Green: Now you can see our contract liabilities sitting on the balance sheet were 3.1 million as current portion and about 7 million for long term.
Speaker Change: They're a part of Digital Ally.
Speaker Change: And it makes it a little clearer to define, you know, digital ally and who they are.
Brody Green: That's our deferred revenue for, you know, R3 inside your contracts.
Stanton Ross: And it makes it a little clearer to define, you know, Digital Ally and who they are by, you know, getting this, getting custom entertainment moved out. So excited about that, excited for the value. I'm sure that both companies will be reporting the outcome of the votes. We'll probably, you know, it's not always.
Speaker Change: Bye, Guinness.
Speaker Change: and Carl Sagan. We are excited about that and excited for the value. I am sure that both companies will be reporting the outcome of the votes. We probably will not always have that. We will have to wait and see. I think we are going to have a lot of discussion about that.
Brody Green: So those are really going to find their way up to the P&L as those maturing and come due.
Stanton Ross: We're probably, you know, it's not always good to be doing news releases on a Friday, but the importance of this clearly has us running something as soon as we know what the outcome of that vote was. And at that point in time, I'm sure we'll be trying to establish a closing date that we will try to include in that release as well. So been a long time coming, excited to cheer for, again, like I said, all the Digital Ally shareholders, Digital Ally and also the new customer entertainment.
Speaker Change: Good to be doing news releases on a on a Friday, but the importance of this clearly will have us
Stanton Ross: Good to be doing news releases on a on a Friday, but the importance of this clearly will have us running something as soon as we know what the outcome of that vote was. And at that point in time, I'm sure we'll be trying to establish a closing date that we will try to include in that release as well. So. Been a long time coming.
Speaker Change: running something as soon as we know what the outcome of that vote was, and at that point in time, I'm sure we'll be trying to establish a closing date that we will try to include in that release as well. So.
Stan Ross: And I'll let the stand touch on that, along with a few other items. So I'll turn it back over to Stan. Good. Thanks Brody. Yeah. A lot of the calls and emails, even text messages, have been around the big business combination agreement where Digital Ally is selling one of its subsidiaries, which is customer entertainment to Cloverly Capital. They are currently a NASDAQ company. I just looked up their stock. It's still trading nicely $12.40.
Brody Green: Total stockholders' equity of the Q2 was a little over $3 million.
Speaker Change: Been a long time coming. Excited it's here for, again, like I said, all the Digital Ally shareholders, Digital Ally, and also the new custom entertainment.
Stanton Ross: Excited it's here for, again, like I said, all the Digital Ally shareholders, Digital Ally, and also the new Custom Entertainment. With that being said, we'll touch real quickly on our festival. It was our first year that we acquired Country Stampede. We were in a new location. We had a lineup that was very good, and we're excited about the future that Country Stampede holds. It's a 28-year-old country festival, one of the largest, if not the largest, in the state of Kansas and probably throughout the Midwest.
Speaker Change: With that being said, we'll touch real quickly on our festival. It was our first year that we acquired Country Stampede. We were in a new location. We had a lineup that was very good.
Stanton Ross: With that being said, we'll touch real quickly on our festival. It was our first year that we acquired Country Stampede. We were in a new location. We had a, you know, lineup that was very good. And we're excited about the future that that country stampede holds. It's a 28-year-old country festival, one of the largest. And it's not the largest in the state of Kansas and probably in throughout the Midwest. We look to up our game a little bit next year. We've already got offers in to a new lineup for 2025 and looking at multiple festivals that will be doing under the customer for 40 as part of the customer entertainment spin off.
Brody Green: So that wraps up the balance sheet.
Brody Green: Again, further details that you'll find on the Q.
Brody Green: And then for the P&L side, our total revenue for the quarter was $5.6 million with the total gross profit of $242,000.
Brody Green: We are not operating the loss of $3.9 million with a net loss of $5 million.
Stan Ross: We've already done the record date for the first round of dividends. So there will be approximately almost 2.3 million shares of Clover that will be sent out to the Digital Ally shareholders. That's the equivalent, you know, just using today's price. Let's just say after the merger is completed and the price, let's say it stays where it's at. They'd be almost $7.70 stock dividend that those shareholders of record will be getting. And the shareholders of record were those that were shareholders at the end of business on August the 12th.
Speaker Change: and we're excited about the future that that country stampede holds. It's a 28-year-old country festival, one of the largest, if not the largest, in the state of Kansas and probably throughout the Midwest.
Brody Green: And then I have a net loss per share of a and $1.74 cents.
Brody Green: And then our current, at the end of Q2, our current shares outstanding were $3.5 million.
Speaker Change: We'd look to
Stanton Ross: We'd look to.., up our game a little bit next year. We've already got offers in to a new lineup for 2025 and looking at multiple festivals that we'll be doing under the custom 440 as part of the custom entertainment spinoff. So with that being said, why don't we go ahead and open up the lines for Q&A, please. Thank you. Ladies and gentlemen, if you'd like to ask a question, please press star 1 on your telephone keypad. Would try a question, press start.
Brody Green: And I think that's a really a summary.
Speaker Change: Up our game a little bit next year. We've already got offers in to a new lineup for 2025 and looking at multiple festivals that we'll be doing under the Custom 440 as part of the Custom Entertainment spinoff.
Brody Green: One good thing to call out is our deferred revenue continues to grow. I think it's up to a little over $10.5 million at this point, I believe.
Brody Green: So again, continue to grow quarter over quarter.
Speaker Change: So, with that being said, why don't we go ahead and open up the lines for Q&A, please.
Operator: So, with that being said, why don't we go ahead and open up the lines for Q&A, please. Thank you, ladies and gentlemen. If you'd like to ask a question, please press star one on your telephone keypad. To which I a question, press star two. One moment, please for your first question.
Brody Green: And it'll continue to be recognized in the quarter in which it's renewed.
Stan Ross: So last week. So that should be happening. What will also transpire is Digital Ally itself will then be receiving and holding on to almost 7.6 million shares. And so you can do the back of the envelope math on that. It's an astronomical number and a lot of value that comes into Digital Ally, especially if the stock holds strong where it's at. And eventually the goal is to go ahead and dividend that dividend out those shares as well. There'll be a new record date established and those will be sent out in about a six month period of time as well.
Brody Green: So this continues to grow and hit the P&L just every year moving forward.
Speaker Change: Thank you. Ladies and gentlemen, if you'd like to ask a question, please press star 1 on your telephone keypad. To withdraw your question, press star 2. One moment please for your first question.
Brody Green: And as that balance that increases, that's pretty much the goal of what we're trying to do with the subscription model.
Operator: One moment, please, for your first question. Your first question comes from Rommel Dionisio from HS Capital. Please go ahead. Good morning. Thanks for taking my question. The first is just a housekeeping question.
Brody Green: So it continues to work.
Speaker Change: Your first question comes from Romare Dionisio from HS Capital. Please go ahead.
Rommel Dionisio: Your first question, consumer email, D.O. Newcio from Ages Capital, please go ahead. Good morning, just thanks for taking my question. The first is just a housekeeping question. Could you guys just clarify, please, shares outstanding. It's only 3.5, but I thought you had 2.8, and there's 1.2 from the offering. Where's my math output now? So it would be more like 4.0, and I see 3.6. Yes, it was 3.5 at quarter end because the pre-funded warrants had yet to be exercised from the deal. So, so now it is up to. I believe you're attending it.
Speaker Change: Good morning. Thanks for taking my question. The first is just a housekeeping question. Could you guys just clarify, please, shares outstanding? It's showing 3.5, but I thought you had 2.8, and there's 1.2 from the offering. Where's my math off on that? I thought it would be more like 4.0, and I'm seeing 3.0. Thanks.
Rommel Dionisio: Could you guys just clarify, please, shares outstanding? It's showing 3.5, but I thought you had 2.8, and there's 1.2 from the offering. Where's my math off on that?
Brody Green: I thought it would be more like 4.0, and I'm seeing 3.5. Yes, it was 3.5 at quarter end because the pre funded warrants had yet to be exercised from the deal. So, so now it is up to, I believe you're, I think it's. Yes, but a little less than 3.7 now, but at quarter end it was 3. It was, well, it was a number. It was 3.5 at quarter end, and then now, let me just double check the face of...
Speaker Change: Yes, it was 3.5 at quarter end because the pre-funded warrants had yet to be exercised from the deal. So now it is up to, I believe you're, I think it's
Stan Ross: So now the timing. Those have been following closely. Know that Clover got their SEC approval of the registration. So it's active. They are now having their shareholder vote to complete this transaction. I want to say it's at 10 o'clock Eastern time this coming Friday. Once that is completed and we continue to move forward on cross the T's and dot knives and making sure all the things that have been agreed upon in the business combination agreement are there.
Speaker Change: Yeah, it's a little less than 3.7 now, but at quarter end it was 3.
Rommel Dionisio: Yes, but a little less than 3.7 now, but I quarter-ended it was 3, it was 3.5 at quarter-end and then now let me just double check the face of you because it shouldn't be a little less than 3.9 at this point after all the horns were intercepted. Great, perfect things.
Speaker Change: It was 3.5 at quarter end, and then now let me just double check the face of...
Speaker Change: Thank you.
Stan Ross: Then we'll move forward the following week into completing that transaction. So December of 22 and then started going down this path and negotiating in about March of 23 actually entered into an agreement. I want to say it was in June of 23. So just been a long, long road that I'm excited about the prospects, and the value that it brings into Digital Ally and Ford shareholders in the opportunity for clarity on the companies as well.
Speaker Change: It's a little less than 3.9 at this point after all the warrants were exercised.
Brody Green: Thank you. Thank you. A little less than 3.9 at this point after all the warrants were exercised. Great, perfect, thanks. Okay, and just more of a fundamental question.
Speaker Change: Great, perfect, thanks. Okay, and just more of a fundamental question. I wonder if you could just give us an update on the first few crones, some of these models that you've launched over the years. Sounds like that deferred revenue number is really growing, so please comment on the execution of that strategy that you've been laying out the last few quarters and how that's all going. Thank you.
Rommel Dionisio: I wonder if you could just give us an update on the first few crowns, some of these models that we've launched over the years. Sounds like the deferred revenue number is really growing. So, please comment on the execution of that strategy that you've been laying out the last few quarters and how that's all going. Thank you. Yeah, we continue, you know, push that first you pro out and all the docking stations, they have a vein 24. It's kind of a, Amazement.
Rommel Dionisio: Okay, and just more of a fundamental question, I wonder if you could just give us an update on the first few crores and some of these models that we launched over the years. Something that deferred revenue numbers really growing, so please comment on the execution that strategy that you've been laying out the last few quarters and how that's all going. Thank you. Yeah, we continue the first few pro out on all the docking stations, the ABA and 24. It's kind of a; it means we did the subscription model more for financing purposes, you know, instead of a massive cat-back for these municipalities, cities, and especially the commercial side too.
Speaker Change: Yeah, we continue, you know, just that first few pro out and all the docking stations, they are the 8 bay and 24. It's kind of a, I mean, it's
Stan Ross: It puts the situation where one of the ticketing platform and the festival platform is now out there on its own. So you essentially have now video solutions in the medical billing company that are a part of Digital Ally and it makes it a little clearer to define, you know, Digital Ally and who they are by getting this, getting the customer entertainment moved out. So excited about that, excited for the value. I'm sure that both companies will be reporting the outcome of the votes.
Speaker Change: We did the subscription model more for financing purposes, you know, instead of a massive capex for these municipalities, cities, and especially the commercial side to it kind of, it gives them time to, you know, it's more of a annual fee rather than.
Brody Green: We did the subscription model more for financing purposes, you know, instead of a massive capex for these municipalities, cities, and especially the commercial side, too. It kind of gives them time to, you know, it's more of an annual fee rather than.., you know, a massive undertaking in year one and the use for five years. So it's worked well on our sports teams. They they've enjoyed the subscription model as well as. You know, the Royal Caribbean Cruise Lines and several other, you know, colleges and what not outside of just law enforcement as well, that they sign up for these three or five year contracts in which they can pay off cash flow rather than off of big cap expense throughout the... No, they don't have to make a massive investment.
Rommel Dionisio: It kind of, it gives them time to, you know, it's more of an annual fee rather than, you know, in a year one than the use for five years. So it's worked well on our, you know, the sports teams that they've enjoyed the subscription model as well as, you know, the Royal Caribbean cruise lines and several other, you know, colleges and whatnot outside of just law enforcement as well, that they sign up to these three or five-year contracts in which they can pay off cash flow rather than off of, you know, big cat-back spins throughout the, you know, they don't have to make a massive investment.
Speaker Change: has a massive undertaking in year one and they used for five years. So it's worked well on our sports teams. They've enjoyed the subscription model as well as
Speaker Change: You know, the Royal Caribbean Cruise Lines and several other, you know, colleges and what not outside of just law enforcement as well.
Speaker Change: that they sign up for these three or five-year contracts in which they can pay off cash flow rather than off of big cap expense.
Stan Ross: We're probably, you know, it's not always good to be doing news releases on a on a Friday, but the importance of this clearly have us running something as soon as we know what the outcome of that vote was. And at that point time, I'm sure we'll be trying to establish a closing date that we will try to include in that release as well. So been a long time coming, excited to cheer for, again, like I said, all the Digital Ally shareholders, Digital Ally and also the new customer entertainment.
Speaker Change: throughout the
Speaker Change: No, they don't have to make a massive investment. So yeah, we're happy with that balance continuing to grow
Brody Green: So, yeah, we were happy with that balance continuing to grow. And, you know, we hope for it to just continue to compile. And then obviously, recurring revenue for us year over year, not just from a financial reporting standpoint, but also from a cash flow standpoint.
Rommel Dionisio: So yeah, we're happy with that balance continuing to grow and, you know, we hope for it to just continue to compile and then obviously be recurring revenue for us year over year, not just from a financial reporting standpoint, but also from a cash flow standpoint. Great. Thanks very much. Thank you, Ramon. Ladies and gentlemen, as a reminder, if you'd like to ask the question, please press star one.
Speaker Change: And, you know, we hope for it to just continue to compile and then obviously be recurring revenue for us year over year, not just from a financial reporting standpoint, but also from a cash flow standpoint.
Speaker Change: Great, thanks very much.
Operator: Great, thanks very much. Ladies and gentlemen, as a reminder, if you'd like to ask a question, please press star one. And there are no further questions at this time. I will turn the call back over to Stan Ross for closing remarks. Well, again, thanks everybody for jumping on real quick and also want to again point out that both Digital Ally currently has a shareholder vote coming up here this Friday and Cloverleaf Capital also has one on Friday concerning the business combination agreement.
Ramal: Thank you, Ramal.
Speaker Change: Ladies and gentlemen, as a reminder, if you'd like to ask a question, please press star 1.
Operator: And so we will keep you posted through both the press release and 8K as soon as we have the outcome of those numbers. So thanks everybody. Have a great week and we'll talk soon. Ladies and gentlemen, this concludes your conference call for today. You may now disconnect. Thank you.
Brody Green: And I know we had a few big events this quarter on the entertainment side as well with them having their festival at the end of June.
Stan Ross: With that being said, we'll touch real quickly on our festival.
Speaker Change: Subs by www.zeoranger.co.uk
Speaker Change: And there are no further questions at this time. I will turn the call back over to Stan Ross for closing remarks.
Brody Green: And I'll let the stand touch on that, along with a few other items.
Stan Ross: It was our first year that we acquired country stampede. We were in a new location. We had a, you know, lineup that was very good. And we're excited about the future that that country stampede holds. It's a 28 year old country festival, one of the largest. And it's not the largest in the state of Kansas and probably in throughout the Midwest.
Operator: And there are no further questions at this time.
Stanton Ross: I will turn the call back over to Stan Russ for closing remarks. Well, again, thanks everybody for jumping on real quick and also want to, again, point out that both DigiLi currently has a shareholder vote coming up here this Friday and Cloverleaf Capital also has one on Friday concerning the business combination agreement. And so we will keep you posted through both the press release and 8-K as soon as we have the outcome of those numbers. So thanks, everybody.
Stan Ross: So I'll turn it back over to Stan.
Stan Ross: Good.
Speaker Change: Again, thanks everybody for jumping on real quick and also want to again point out that
Stan Ross: Thanks Brody.
Speaker Change: Both Digital Ally currently has a shareholder vote coming up here this Friday and Cloverleaf.
Stan Ross: Yeah.
Speaker Change: Capital also has one on Friday concerning the Business Combination Agreement, and so we will keep you posted through both the press release and 8K as soon as we have the outcome of those numbers.
Stan Ross: We look to up our game a little bit next year. We've already got offers in to a new lineup for 2025 and looking at multiple festivals that will be doing under the customer for 40 as part of the customer entertainment spin off.
Stan Ross: A lot of the calls and emails, even text messages, have been around the big business combination agreement where Digital Ally is selling one of its subsidiaries, which is customer entertainment to Cloverly Capital.
Speaker Change: So...
Speaker Change: Thanks, everybody. Have a great week and we'll talk soon.
Stanton Ross: Have a great week, and we'll talk soon.
Speaker Change: Ladies and gentlemen, this concludes your conference call for today. You may now disconnect. Thank you.
Operator: Ladies and gentlemen, this concludes your conference call for today. You may now disconnect. Thank you.
Stan Ross: They are currently a NASDAQ company.
Stan Ross: So with that being said, why don't we go ahead and open up the lines for Q&A, please. Thank you, ladies and gentlemen.
Stan Ross: I just looked up their stock.
Stan Ross: It's still trading nicely $12.40.
Rommel Dionisio: If you'd like to ask a question, please press star one on your telephone keypad to which I a question press start to one moment, please for your first question. Your first question, consumer email, D.O. Newcio from ages capital, please go ahead. Good morning, just thanks for taking my question. The first is just a housekeeping question. Could you guys just clarify, please, shares outstanding. It's only 3.5, but I thought you had 2.8 and there's 1.2 from the offering.
Rommel Dionisio: Rommel Dionisio.
Stan Ross: We've already done the record date for the first round of dividends. So there will be approximately almost 2.3 million shares of Clover that will be sent out to the Digital Ally shareholders.
Stan Ross: That's the equivalent, you know, just using today's price.
Rommel Dionisio: Where's my math output now? So it would be more like 4.0 and I see 3.6. Yes, it was 3.5 at quarter end because the pre-funded warrants had yet to be exercised from the deal. So so now it is up to. I believe you're attending it. Yes, but a little less than 3.7 now, but I quarter-ended it was 3, it was 3.5 at quarter-end and then now let me just double check the face of you because it shouldn't be a little less than 3.9 at this point after all the horns were intercepted Great, perfect things.
Rommel Dionisio: Okay, and just more of a fundamental question, I wonder if you could just give us an update on the first few crores and some of these models that we launched over the years. Something that deferred revenue numbers really growing, so please comment on the execution that strategy that you've been laying out the last few quarters and how that's all going. Thank you. Yeah, we continue the first few pro out on all the docking stations, the ABA and 24.
Rommel Dionisio: It's kind of a, it means we did the subscription model more for financing purposes, you know, instead of a massive cat-back for these municipalities, cities, and especially the commercial side too. It kind of, it gives them time to, you know, it's more of an annual fee rather than, you know, in a year one than the use for five years. So it's worked well on our, you know, the sports teams that they've enjoyed the subscription model as well as, you know, the Royal Caribbean cruise lines and several other, you know, colleges and whatnot outside of just law enforcement as well, that they sign up to these three or five-year contracts in which they can pay off cash flow rather than off of, you know, big cat-back spins throughout the, you know, they don't have to make a massive investment.
Rommel Dionisio: So yeah, we're happy with that balance continuing to grow and, you know, we hope for it to just continue to compile and then obviously be recurring revenue for us year over year, not just from a financial reporting standpoint, but also from a cash flow standpoint. Great. Thanks very much. Thank you, Ramon.
Operator: Ladies and gentlemen, as a reminder, if you'd like to ask the question, please press star one. And there are no further questions at this time.
Stan Ross: I will turn the call back over to Stan Russ for closing remarks. Well, again, thanks everybody for jumping on real quick and also want to, again, point out that both DigiLi currently has a shareholder vote coming up here this Friday and Cloverleaf Capital also has one on Friday concerning the business combination agreement. And so we will keep you posted through both the press release and 8K as soon as we have the outcome of those numbers.
Stan Ross: Let's just say after the merger is completed and the price, let's say it stays where it's at.
Stan Ross: They'd be almost $7.70 stock dividend that those shareholders of record will be getting. And the shareholders of record were those that were shareholders at the end of business on August the 12th.
Stan Ross: So last week.
Stan Ross: So thanks everybody. Have a great week and we'll talk soon.
Stan Ross: So that should be happening.
Stan Ross: What will also transpire is Digital Ally itself will then be receiving and holding on to almost 7.6 million shares.
Operator: Ladies and gentlemen, this concludes your conference call for today. You may now disconnect. Thank you.
Stan Ross: And so you can do the back of the envelope math on that.
Stan Ross: It's an astronomical number and a lot of value that comes into Digital Ally, especially if the stock holds strong where it's at.
Stan Ross: And eventually the goal is to go ahead and dividend that dividend out those shares as well.
Rommel Dionisio: Rommel Dionisio.
Stan Ross: There'll be a new record date established and those will be sent out in about a six month period of time as well.
Stan Ross: So now the timing.
Stan Ross: Those have been following closely.
Stan Ross: Know that Clover got their SEC approval of the registration.
Stan Ross: So it's active.
Stan Ross: They are now having their shareholder vote to complete this transaction.
Stan Ross: I want to say it's at 10 o'clock Eastern time this coming Friday.
Stan Ross: Once that is completed and we continue to move forward on cross the T's and dot knives and making sure all the things that have been agreed upon in the business combination agreement are there.
Stan Ross: Then we'll move forward the following week into completing that transaction.
Stan Ross: So December of 22 and then started going down this path and negotiating in about March of 23 actually entered into an agreement.
Stan Ross: I want to say it was in June of 23.
Stan Ross: So just been a long, long road that I'm excited about the prospects, and the value that it brings into Digital Ally and Ford shareholders in the opportunity for clarity on the companies as well.
Stan Ross: It puts the situation where one of the ticketing platform and the festival platform is now out there on its own.
Stan Ross: So you essentially have now video solutions in the medical billing company that are a part of Digital Ally and it makes it a little clearer to define, you know, Digital Ally and who they are by getting this, getting the customer entertainment moved out.
Stan Ross: So excited about that, excited for the value.
Stan Ross: I'm sure that both companies will be reporting the outcome of the votes.
Stan Ross: We're probably, you know, it's not always good to be doing news releases on a on a Friday, but the importance of this clearly have us running something as soon as we know what the outcome of that vote was.
Stan Ross: And at that point time, I'm sure we'll be trying to establish a closing date that we will try to include in that release as well.
Stan Ross: So been a long time coming, excited to cheer for, again, like I said, all the Digital Ally shareholders, Digital Ally and also the new customer entertainment.
Stan Ross: With that being said, we'll touch real quickly on our festival.
Stan Ross: It was our first year that we acquired country stampede. We were in a new location.
Stan Ross: We had a, you know, lineup that was very good.
Stan Ross: And we're excited about the future that that country stampede holds.
Stan Ross: It's a 28 year old country festival, one of the largest.
Stan Ross: And it's not the largest in the state of Kansas and probably in throughout the Midwest.
Stan Ross: We look to up our game a little bit next year.
Stan Ross: We've already got offers in to a new lineup for 2025 and looking at multiple festivals that will be doing under the customer for 40 as part of the customer entertainment spin off.
Stan Ross: So with that being said, why don't we go ahead and open up the lines for Q&A, please.
Operator: Thank you, ladies and gentlemen.
Operator: If you'd like to ask a question, please press star one on your telephone keypad to which I a question press start to one moment, please for your first question.
Rommel Dionisio: Your first question, consumer email, D.O.
Rommel Dionisio: Newcio from ages capital, please go ahead.
Rommel Dionisio: Good morning, just thanks for taking my question.
Rommel Dionisio: The first is just a housekeeping question.
Rommel Dionisio: Could you guys just clarify, please, shares outstanding.
Rommel Dionisio: It's only 3.5, but I thought you had 2.8 and there's 1.2 from the offering.
Rommel Dionisio: Where's my math output now?
Rommel Dionisio: So it would be more like 4.0 and I see 3.6.
Brody Green: Yes, it was 3.5 at quarter end because the pre-funded warrants had yet to be exercised from the deal.
Brody Green: So so now it is up to.
Brody Green: I believe you're attending it.
Brody Green: Yes, but a little less than 3.7 now, but I quarter-ended it was 3, it was 3.5 at quarter-end and then now let me just double check the face of you because it shouldn't be a little less than 3.9 at this point after all the horns were intercepted Great, perfect things.
Rommel Dionisio: Okay, and just more of a fundamental question, I wonder if you could just give us an update on the first few crores and some of these models that we launched over the years.
Brody Green: Something that deferred revenue numbers really growing, so please comment on the execution that strategy that you've been laying out the last few quarters and how that's all going.
Rommel Dionisio: Thank you.
Brody Green: Yeah, we continue the first few pro out on all the docking stations, the ABA and 24.
Brody Green: It's kind of a, it means we did the subscription model more for financing purposes, you know, instead of a massive cat-back for these municipalities, cities, and especially the commercial side too.
Brody Green: It kind of, it gives them time to, you know, it's more of an annual fee rather than, you know, in a year one than the use for five years.
Brody Green: So it's worked well on our, you know, the sports teams that they've enjoyed the subscription model as well as, you know, the Royal Caribbean cruise lines and several other, you know, colleges and whatnot outside of just law enforcement as well, that they sign up to these three or five-year contracts in which they can pay off cash flow rather than off of, you know, big cat-back spins throughout the, you know, they don't have to make a massive investment.
Brody Green: So yeah, we're happy with that balance continuing to grow and, you know, we hope for it to just continue to compile and then obviously be recurring revenue for us year over year, not just from a financial reporting standpoint, but also from a cash flow standpoint.
Rommel Dionisio: Great.
Rommel Dionisio: Thanks very much.
Operator: Thank you, Ramon.
Operator: Ladies and gentlemen, as a reminder, if you'd like to ask the question, please press star one.
Operator: And there are no further questions at this time.
Stan Ross: I will turn the call back over to Stan Russ for closing remarks.
Stan Ross: Well, again, thanks everybody for jumping on real quick and also want to, again, point out that both DigiLi currently has a shareholder vote coming up here this Friday and Cloverleaf Capital also has one on Friday concerning the business combination agreement.
Stan Ross: And so we will keep you posted through both the press release and 8K as soon as we have the outcome of those numbers.
Stan Ross: So thanks everybody.
Stan Ross: Have a great week and we'll talk soon.
Operator: Ladies and gentlemen, this concludes your conference call for today.
Operator: You may now disconnect.
Operator: Thank you.
Rommel Dionisio.