Q3 2024 Phunware Inc Earnings Call

November 7, 2024

Unknown Attendee, Troy Reisner

Speaker Change: Ladies and gentlemen, thank you for standing by. Good afternoon and welcome to the FUNWARE 3rd Quarter 2024 Earnings Conference Call. At this time, all participants are on a listen-only mode. If you need assistance, please signal a conference specialist by pressing the star key followed by the FUNWARE 3rd Quarter 2024 Earnings Conference Call.

Speaker Change: A webcast replay of the call will be available approximately one hour after the end of the call through November 7th, 2025.

Speaker Change: I would now like to turn the call over to Brooks Hamilton of MZ Group, the company's investor relations firm. Please go ahead, sir.

Brooks Hamilton: Thank you, operator. Good afternoon and thank you for participating in today's conference call.

Brooks Hamilton: Earlier this afternoon, the company released its financial results for the quarter ended September 30, 2024.

Brooks Hamilton: A copy of that press release can be found on the company's website at www.funware.com by selecting investors under the about tab from the corporate homepage.

Brooks Hamilton: I further encourage you to visit investors.fundware.com to access not only the earnings press release but also the current investor presentation, SEC filings, Fundware's recently released letter to shareholders, and additional information on Fundware.

Brooks Hamilton: Joining me on today's earnings call from FundWare's management team are Stephen Chen, Interim Chief Executive Officer and Troy Reisner, Chief Financial Officer.

Brooks Hamilton: During this call, management will be making forward-looking statements, including statements that address fundraisers' expectations for future performance or operational results.

Brooks Hamilton: Board-looking statements involve risks and other factors that may cause actual results to differ materially from those statements.

Brooks Hamilton: For more information about these risks, please refer to the risk factors described in FunWare's most recently filed annual report on Form 10-K and subsequent periodic reports filed by FunWare with the SEC and FunWare's press release that accompanies this call, particularly the cautionary statements in it.

Brooks Hamilton: Additionally, the matters being discussed today may include non-GAAP financial measures.

Brooks Hamilton: Reconciliation of GAAP to non-GAAP financial information is set forth in the Earnings Press release.

Brooks Hamilton: The content of this call contains time-sensitive information that is accurate only as of today, November 7th, 2024.

Speaker Change: Except as required by law, FUNWARE disclaims any obligation to publicly update or revise any information provided on this call to reflect events or circumstances that occur after this call. It is now my pleasure to turn the call over to FUNWARE's Interim CEO, Stephen Chen. Stephen?

Speaker Change: Thank you, everyone, for joining today's earnings call. I'm Stephen Chen, and I am excited to update you on Fundware's progress.

Speaker Change: We're rooted in our legacy as a pioneer in mobile technology and our commitment to becoming a leader in the mobile plus AI solutions space.

As we communicated in our recent shareholder letter,

Speaker Change: Funware's history of mobile engagement uniquely positions us for an era where mobile technology and AI converge.

Speaker Change: From the beginning, firmware was among the first to recognize the transformative power of mobile devices as a primary way people interact with technology and with one another.

Speaker Change: This foundation allows us to now deliver generative AI directly into users' hands, creating experiences that are highly personalized, relevant, and impactful.

Unknown Attendee, Troy Reisner

Speaker Change: This legacy is more than history, it's also the springboard for our next chapter.

Speaker Change: As we step into the era of AI, we see Mobile Plus AI as the future standard for all enterprise engagements.

Speaker Change: Mobile devices remain one of the most accessible universal technologies globally, making them the ideal platform for our AI solutions.

Speaker Change: By combining mobile and AI, we're enabling businesses to create entirely new opportunities for meaningful engagement, transforming devices into highly adaptable real-time tools for connecting with customers and employees.

Unknown Attendee, Troy Reisner

Speaker Change: Our vision spans both consumer facing applications and internal employee productivity tools.

Speaker Change: For consumers, we're building personalized, context-aware experiences that elevate engagement, service, and satisfaction.

Speaker Change: For internal use, we're designing AI-enhanced productivity tools that streamline workflows, improve decision-making, and boost operational efficiency.

Speaker Change: This dual approach empowers enterprises to harness AI to enhance customer engagement while optimizing internal productivity.

Unknown Attendee, Troy Reisner

Speaker Change: Our next-generation AI-driven SaaS platform, anticipated to launch in mid-2025, is designed to democratize mobile app creation by allowing companies of all sizes

Speaker Change: to create, build, and deploy custom mobile apps quickly and affordably.

Unknown Attendee, Troy Reisner

Speaker Change: This platform is rooted in our understanding that modern businesses need fast, scalable AI solutions that reduce both the cost and complexity of mobile app development, giving them the flexibility to design high-quality apps that respond directly to user preferences.

Unknown Attendee, Troy Reisner

Speaker Change: Fundware's extensive experiences working with Fortune 500 companies has given us a robust understanding of what it takes to deploy technology at scale.

Speaker Change: This expertise allows us to create modular, rapidly deployable AI solutions that can adapt to a wide range of industry needs.

Speaker Change: and allow for a quick mobile plus AI deployment for specific use cases or a comprehensive cross-departmental AI integration and we're built to scale.

Speaker Change: This gives our customers a unique advantage to adopt AI incrementally while leveraging our infrastructure to scale their operations seamlessly.

Unknown Attendee, Troy Reisner

Let's talk about some of the specifics.

Speaker Change: Through our relationship with MyCanvas, we are actively exploring AI power solutions to transform civic engagement, leveraging Fundware's expertise in mobile and AI.

Speaker Change: This partnership enables us to deliver a next generation platform that combines mobile engagement with advanced AI capabilities tailored for both federal and local applications and powered by localized LLFs.

Speaker Change: Our vision is to go beyond traditional voter outreach, equipping advocacy groups, nonprofits, and public agencies with tools for broader civic participation and engagement.

Speaker Change: We can provide nuanced, context-specific insights to support a wide range of activities.

Speaker Change: And we allow organizations and governments to have tools that deliver precise data-informed strategies and help them connect more effectively with diverse communities.

Unknown Attendee, Troy Reisner

Speaker Change: This is a real-time optimized outreach approach based on hyperlocal data.

and allows us to have community-relevant messaging.

Unknown Attendee, Troy Reisner

We hope to set a new standard in civic engagement.

Speaker Change: Firmware's investment in infrastructure has positioned us to capture strong demand in the market for AI-driven solutions.

We have a focus on scalable modular

giving our partners a foundation for sustainable growth.

Unknown Attendee, Troy Reisner

Speaker Change: We can support high-value customer engagements across a myriad of industries and fuel momentum in both bookings and sales.

Unknown Attendee, Troy Reisner

Firmware remains debt-free.

Speaker Change: We have adequate resources to support our continued investment in AI, sales, and engineering.

Speaker Change: We have financial stability that allows us to pursue a growth strategy judiciously while also ensuring we deliver long-term value to stockholders.

Speaker Change: Our commitment to fiscal responsibility is demonstrated in our efficient use of capital and in our balanced investment in strategic areas that align with our vision.

Unknown Attendee, Troy Reisner

Speaker Change: We have a robust level of liquidity and allow us to support operational flexibility and resilience.

Speaker Change: and will allow us to respond effectively to emerging opportunities and address challenges while allowing us to have sustained stability and growth.

Unknown Attendee, Troy Reisner

FunWare's vision, leading a $500 billion generative AI market.

Unknown Attendee, Troy Reisner

Speaker Change: FunWare's foundational work in mobile technology is now propelling us into the rapidly expanding generative AI marketplace.

Unknown Attendee, Troy Reisner

Speaker Change: By driving engagement, operational efficiency, and long-term growth, we believe Fundware is exceptionally well positioned to redefine how businesses and governments engage with customers, citizens, and employees in the AI era.

Unknown Attendee, Troy Reisner

Speaker Change: FunWare's journey from a mobile pioneer to a leader in mobile plus AI represents an exciting evolution.

Speaker Change: Unknown Attendee, Troy Reisner, Unknown Attendee, Troy Reisner, Unknown Attendee, Troy Reisner,

Speaker Change: Underscores our commitment to aligning our team with the strategic direction.

Speaker Change: This leadership adjustment is part of a broader effort to strengthen our alignment across all levels, ensuring we can fully leverage our foundation in mobile engagement while advancing our AI-driven initiatives.

Speaker Change: We're actively seeking individuals who can provide fresh perspectives and guide us towards achieving this vision with precision and agility.

Unknown Attendee, Troy Reisner

Speaker Change: Thank you, and now I'll turn over the call to Troy to discuss our financial performance.

Unknown Attendee, Troy Reisner

Troy Reisner: Thank you, Stephen. And good afternoon, everyone. I'd like to thank you for joining us today for our review of FundWare's third quarter 2024 financial performance.

Troy Reisner: As we move through our results, I'll be discussing GAAP financial measures unless otherwise specifically noted. Our press release, 8K, and website provide a reconciliation of all GAAP to non-GAAP financial results.

Troy Reisner: As a reminder, our previous business, Light Technologies, is reflected in our financials as a discontinued operation in accordance with GAAP. The financial information I'm about to share is solely focused on our continuing operations, and with that said, let's take a look at the numbers.

Troy Reisner: Year-to-date software subscriptions and service bookings, which represent executed contracts and future revenue, for the nine months ended September 30th were approximately $2.2 million in 2024, as compared to approximately $600,000 in 2023, nearly a 300% increase.

Troy Reisner: Net revenues for the third quarter of 2024 totaled approximately $665,000 compared to approximately $1.3 million in the third quarter of 2023, with 2023 net revenue benefiting nearly $300,000 from a contract breakage fee.

Troy Reisner: Net revenues for the nine months in the September 30th were approximately 2.6 million in 2024 as compared to 3.9 million in 2023.

Troy Reisner: Gross margin for the nine months ended September 30th was approximately 51% in 2024 as compared to approximately 32% in 2023. Excluding non-cash stock-based compensation, gross margin was approximately 56% in 2024 as compared to approximately 43% for the comparable period in 2023.

Unknown Attendee, Troy Reisner

Troy Reisner: Total operating expense was approximately $3.5 million for the third quarter of 2024 versus approximately $4.9 million for Q3 2023, which excludes $9 million of goodwill impairment expense in Q3 2023.

Troy Reisner: Excluding the 2023 goodwill impairment, our operating costs decreased approximately 28% period over period.

Troy Reisner: On a year-to-date comparison, excluding the goodwill impairment, our operating expenses decreased approximately 44% in 2024 as compared to 2023.

Troy Reisner: Non-GAAP-adjusted EBITDA loss was approximately $2.9 million in the third quarter of 2024, compared to a loss of approximately $3.3 million for the third quarter of 2023. Year-to-date, our non-GAAP-adjusted EBITDA loss was approximately $7.3 million versus approximately $13 million for the comparable period in 2023.

Troy Reisner: Net loss from continuing operations for the third quarter of 2024 was approximately $2.8 million, or $0.25 per share, compared to a net loss from continuing operations of approximately $13.7 million, or $5.72 per share, for the third quarter of 2023, which reflects a 96% improvement.

Troy Reisner: The weighted average shares used to calculate earnings per share was approximately 11.1 million versus approximately 2.4 million in the third quarter of 2023, which does reflect the reverse stock split effectuated in February 2024.

Troy Reisner: Moving to the balance sheet, we close the quarter of 2024 with approximately $35.6 million in cash and no debt.

Troy Reisner: During the third quarter of 2024, cash increased as a result of utilizing the at-the-market equity program, having sold approximately 2.9 million shares of common stock, which raised gross proceeds of approximately 16.8 million before commissions and fees.

Troy Reisner: Subsequent to the end of the third quarter, we have continued to periodically utilize our ATM equity program, selling additional shares of approximately 8 million, which raised gross proceeds of approximately $79.8 million through November 5th, 2024.

Troy Reisner: Fundra has approximately 70 million of capacity remaining under our existing ATM program.

Troy Reisner: As a result of all that, as of November 6, we have approximately $110 million of cash and cash equivalents on hand. The utilization of our ATM equity program has significantly boosted funders' cash reserves and fortified our balance sheet.

Speaker Change: With that, we'd like to turn the call back over to the operator so that we can begin the question and answer session. Please go ahead, operator.

Unknown Attendee, Troy Reisner

Speaker Change: Thank you. At this time, we will be conducting our question and answer session.

One moment please, while we poll for questions.

Thank you.

Speaker Change: Our first question is coming from Darren Espahi with Rock Capital. Your line is live.

Speaker Change: Do you have some of the resources that you need to get there, such as staff or technology or like how are you looking at investing in that in order to get from where you're at today to the platform that you envision when you're when you're launching?

Speaker Change: Yeah, this is Steve Chen. I'm happy to take that call. You know, thanks for that call. Thanks for that question.

Unknown Attendee, Troy Reisner

Speaker Change: And what we've historically done is when, you know, when customers will like to have a mobile app, we can spin it up in

Unknown Attendee, Troy Reisner

Speaker Change: On the back end, historically, our engineers have been pulling together, you know, different modules to, you know, to create the app.

Speaker Change: All we're doing now with our platform is, you know, adding a field to the very front end of it so that you can put in, you know, the desired app you'd like to create. And we're currently in the process of automating everything on the back end.

Speaker Change: To answer your question, yes, you know, we're best in class. We've done it for, you know, among some of the biggest, you know, companies.

Unknown Attendee, Troy Reisner

Speaker Change: So we absolutely do have the tools to do that. We're focused also on being, it's actually kind of the opposite. We understand that we currently have a burn and we're looking at ways that we can be more cost effective and be mindful of shareholder dollars. Thank you.

And as a follow-up.

Speaker Change: with the balance sheet. Now, how do you think about growth sort of organically with some of the things you're working on and also in organically? And then what sort of if it is through acquisition, what sort of companies would you be looking for?

Unknown Attendee, Troy Reisner

Speaker Change: Yeah, we want to be, you know, we want to be judicious in the way that, in the way that we're looking at this. I think that from a organic growth process, we're looking at opportunities that will allow us to scale the SAS platform.

Unknown Attendee, Troy Reisner

Speaker Change: you know, that's what we'll be pursuing. Above and beyond that, we have a desire to lean on our history, both as a public company, now with a very strong balance sheet.

Speaker Change: with Auditor Financials and a highly professional team. We think we can, you know, we think we can take a meaningful approach towards engaging with enterprises as well as federal governments.

and helping them apply.

Unknown Attendee, Troy Reisner

and specifically within that approach.

Speaker Change: There's many very powerful LLMs out there that folks are very aware of.

Unknown Attendee, Troy Reisner

Speaker Change: one would need to have a localized solution that is easy to audit, that is easy to secure, where you could tie back every data input. And should things go awry, one would need to be able to tie it back to the exact line of code.

Speaker Change: I think that because we have that focus on it and because we have such a long history of building enterprise

Unknown Attendee, Troy Reisner

In terms of

Speaker Change: In terms of an M&A approach, what you'll come to find is that our team is highly metric-based and highly rubric-based.

Unknown Attendee, Troy Reisner

Speaker Change: We're looking at a market analysis, you know does you know on a scale from one to five doesn't help us, you know position Being a stronger position for AI federal contracting

as well as for Enterprise.

Unknown Attendee, Troy Reisner

Speaker Change: are in the ticket size of somewhere between a million to $10 million.

Unknown Attendee, Troy Reisner

Speaker Change: we look at things like operational fit, you know, does it fit with what we're doing already? We're standardizing a lot of our processes internally. We bought an external price, evaluate if we're using best practices.

From a technology evaluation, we'll look at the tech stack.

Unknown Attendee, Troy Reisner

Speaker Change: In terms of a synergy assessment, you know, we're very much focused on cross-selling opportunities.

Unknown Attendee, Troy Reisner

Speaker Change: That said, I think we're very reticent and overpaying for anything.

Unknown Attendee, Troy Reisner

Speaker Change: and that it shares our philosophy of how we grow together.

Speaker Change: And then lastly, you know, it's, you know, we look at, you know, regulatory compliance, of course, but, you know, cultural fit is something that I care a lot about. You know, do they align with the culture, the corporate culture that we that we want to build?

Unknown Attendee, Troy Reisner

A sense of ownership.

Unknown Attendee, Troy Reisner

Speaker Change: you know, rigorously measured against and ticked and tied, we can really build the kind of culture that I think would be needed to be nimble in this space.

Speaker Change: there's a lot of dollars floating around within the AI space and there's a lot of opportunities, but only if we have a high sense of ethical standards. If you have a sense of personal integrity, that will be imbued throughout the organization, as well as a sense of urgency.

Speaker Change: you know, and ownership would be the only way that we can do this. Internally, the tools are advancing so quickly that without a sense of curiosity, we'd be left in the dust.

Speaker Change: and with our sense of innovation and engaging with our customers, we would have no one to work with.

Speaker Change: given our history of working with hospitality and our history of working with hospitals and other clients of the sort political sort of affiliations, we're eager to to work with partners.

Unknown Attendee, Troy Reisner

Speaker Change: We're taking a hard look at ourselves and, you know, we'd love to work with you. And for organizations that have products that could use a capital partner and build something really great, you know, please reach out to our partners. Thank you.

Unknown Attendee, Troy Reisner

Hi, good afternoon guys. Stephen, very nice to meet you.

Speaker Change: I'm curious, can you help us understand what exactly you're getting with MyCanvas and Campaign Nucleus? Is there a real revenue generating business there or is it more about people and tech?

Unknown Attendee, Troy Reisner

Speaker Change: Yeah, I'm happy to answer that to the extent that I can.

The answer is

Unknown Attendee, Troy Reisner

You know, how do I put this?

Speaker Change: Campaign tools are largely developed, you know, from the hyper-local all the way up to the state, the federal, the national level, so on and so forth, you know, those are largely mature.

Speaker Change: The part that is that remains sort of largely segmented and fragmented is this hyperlocal canvassing.

Speaker Change: Put it this way, when I was a high school kid, I ran around and I did canvassing for different elected officials.

and that process was largely still a cash transaction.

Speaker Change: That's the same process as this is today, but your local assembly person, you know, it's it's a it's a manual process. It's a messy process

Unknown Attendee, Troy Reisner

Speaker Change: and we're able to track it real time on a platform.

Speaker Change: And that level of rich data to better understand your constituency and better figure out, you know, how to plan for rules and regulations and policies is a tremendous power for civic engagement and democratization of having your voice heard.

Unknown Attendee, Troy Reisner

Speaker Change: of folks that are ready, willing, and able to pay us ready.

Speaker Change: From a tools perspective, we're ready. You know, this is not a product that we need to work on very much. It's been in motion for a very long time, and

Unknown Attendee, Troy Reisner

Speaker Change: Even for sentiment analysis, you know, being able to break it up, not just by zip code, but on a mile by mile basis is tremendous.

Speaker Change: As you know, we have a long history of wayfinding and being best in class in that, and there's just a

Speaker Change: Tremendous amount of power to have hyperlocalized contextual information combined with generative AI combined with insights.

Speaker Change: and all in the power of your hand, you know, that you now transform these canvassers into real-time ambassadors to share, you know, with their fellow citizens things they really care about is.

at the heart of it is, it's what democracy is.

Right, it's true civic engagement in a really meaningful way.

and the information only gets better with time.

Unknown Attendee, Troy Reisner

Speaker Change: Yeah, I can, I can appreciate that. And my second one is just in terms of visibility, speaking for myself.

Speaker Change: You know, it's a challenge at this point to envision what this business looks like 12 months from now or 24 months from now I know there are a lot of

Unknown Attendee, Troy Reisner

Speaker Change: You know, I really appreciate that. You know, I'm not one to sort of, you know, blow smoke.

Unknown Attendee, Troy Reisner

Speaker Change: you know, and that's part of the reason why we are as harsh with ourselves as, we're more harsh with ourselves and why I started with the word around integrity. You know, we truly value

Speaker Change: Because we're starting with zero, that's actually an opportunity for us, and that's afforded us an opportunity to delve into things like, you know, the localized AI and generative AI.

How we approached this was we said, hey, look.

Speaker Change: You know, we have a very robust balance sheet now, and we have no debt, and we have increasingly culturally aligned individuals that are passionate about building something.

Speaker Change: And as we look at the macro trends, the most obvious thing that hits you in the face that's untapped where there are no market leaders and, you know, would be generative AI space.

Unknown Attendee, Troy Reisner

Speaker Change: If we can merge those two, and help everyone be able to access this in a meaningful way, in a hyper secure way, whether you work for government or otherwise, that becomes incredibly powerful.

Unknown Attendee, Troy Reisner

Speaker Change: So we now have a very long runway, you know, to the tune of two decades if we stretch that out, but at least a decade, even without being particularly conservative.

Speaker Change: We're looking at it and say, hey, look, in two years on a post-mortem and we completely mess this up and deliver no shareholder value, what went wrong?

Speaker Change: Where do we not put the time and effort to focus on it?

Troy Reisner: Unknown Attendee, Troy Reisner, Unknown Attendee, Troy Reisner, Unknown Attendee, Troy Reisner,

Troy Reisner: and the way we'll look at it is that some of the biggest wins are within enterprise and the federal government.

Troy Reisner: and that does require a different Rolodex. It does require different partners.

and it does require a different approach to market.

Unknown Attendee, Troy Reisner

Speaker Change: you know, building a long, strong rapport, building up board advisors, and continuing to leverage the relationships we've historically had.

Speaker Change: and are now only deepening with, you know, individuals like those affiliated with MyCanvas and those are increasingly coming into our constellation as we have a renewed focus on things that have a high sense of integrity and delivering real products and solving real problems.

Unknown Attendee, Troy Reisner

Well, I appreciate that, guys. Thanks for the time.

Unknown Attendee, Troy Reisner

Speaker Change: Absolutely. You know, I, you know, these are conversations we're having with ourselves. So, you know, but always, always happy to share what we're thinking.

Unknown Attendee, Troy Reisner

Speaker Change: Thank you. Our next question is coming from Ed Vu with Ascendiant. Your line is live.

Speaker Change: Yeah, thanks for taking my question. It's very nice to meet you. My question is, will you still predominantly focus on the U.S. or have you thought about international opportunities?

Unknown Attendee, Troy Reisner

Speaker Change: Unknown Attendee, Troy Reisner, Unknown Attendee, Troy Reisner, Unknown Attendee, Troy Reisner,

Speaker Change: We plan on, you know, roll ups, you know, as we look at differentiation, you know, we look at niche specialization, we look at cost effectiveness and we look at our Rolodex.

Unknown Attendee, Troy Reisner

Speaker Change: From that, we plan on launching pilot programs and case studies, which will demonstrate our capabilities and success.

Speaker Change: And yes, you know, call it phase three, you know, three years out, you know, we can start looking at larger market outreach and leverage on success stories and, you know, attend more international events and do more targeted digital campaigns.

Speaker Change: Our partners are doing that today, but they also have a much more robust and fully built out business.

Unknown Attendee, Troy Reisner

Speaker Change: You know, we want to walk before we run. We want to demonstrate real value. We want to sell and solve real problems and then we'll, you know, engage in a larger conversation.

Unknown Attendee, Troy Reisner

Great, thank you and I wish you guys good luck.

Thank you.

Thank you. Our next question.

Speaker Change: is coming from Howard Halpern with Taglage Brothers. Dear Lioness Life

Congratulations on this big transformation.

Speaker Change: Thank you. Thank you. So we know that this part of, you know, going to enterprises and going to the federal government through, you know, channel partners is going to take time.

Speaker Change: What about the digital advertising part or opportunities out there? And might that bring in revenue quicker using the AI technology?

Unknown Attendee, Troy Reisner

Speaker Change: That's such a great question. And thank you for the well wishes, you know, we are focused on transformation and that transformation is

Unknown Attendee, Troy Reisner

Speaker Change: Unknown Attendee, Troy Reisner, Unknown Attendee, Troy Reisner, Unknown Attendee, Troy Reisner,

Speaker Change: and it truly is a transformation and one that will take a lot of dedication and focus and mindset and just a real cultural shift in, you know, true to his heart.

Speaker Change: And I really want to emphasize that cultural component because you can launch, I mean, Fundware has a history of pivoting into a number of different things.

Speaker Change: but that's not a true transformation in the sense that if the mindset and the people are the same that it doesn't change anything.

Speaker Change: And that's really where the departure is and why, you know, I transitioned from being the chair and with the support of my former, you know, my former colleagues have now become not independent but taken on a day-to-day role because

Speaker Change: I care, we care, the people who are surrounding ourselves care about a transformation, about protecting shareholder dollars.

Unknown Attendee, Troy Reisner

Speaker Change: Our burn largely comes from the former and our revenue comes from the latter.

What we've done is we've engaged with

standard operating procedures and scalability and focusing on that.

Speaker Change: and understanding, you know, lead attribution and sales automation and how to scale that out.

Three answers.

Speaker Change: you know, a value attribution, breaking down variable costs, breaking down fixed costs, you know.

Speaker Change: Chopping and Chipping, we've come up with a new rubric of who we bring on board ensuring that, you know, we reduce our costs while, you know, maintaining revenues.

Speaker Change: and we've put metrics to it, right? So if a guy comes in, this is the salary while we plan on making double that in terms of revenues within six months.

Unknown Attendee, Troy Reisner

Speaker Change: I personally, as a CFO, equate, you know, integrity with stewardship of capital.

Speaker Change: you know, and that is very core to who I am. And I'm sure many of the CFOs, you know, out there believe the same way.

Unknown Attendee, Troy Reisner

Speaker Change: Unknown Attendee, Troy Reisner, Unknown Attendee, Troy Reisner, Unknown Attendee, Troy Reisner,

Speaker Change: You're going to be using your own developed generative AI internally to help productivity and advance...

Unknown Attendee, Troy Reisner

Speaker Change: We have been doing that every single day for the last two months.

Speaker Change: We are quickly seeing adopters. We are clearly seeing the non-adopters. And it goes back to that same metric of

Speaker Change: Curiosity, right? This is the most transformative technology for God knows how long and if we are not if we are not using it I could only imply that we're not curious about it. So yes, very much we are using that tool every single day.

Okay, thanks and I look forward to the future.

We all are. Yep.

Unknown Attendee, Troy Reisner

Speaker Change: Thank you. As we have no further questions in queue at this time, I will turn the call back over to Mr. Chen for his closing remarks.

Unknown Attendee, Troy Reisner

Unknown Attendee, Troy Reisner Yeah, thank you. Sorry.

Speaker Change: Thank you all for joining us today. We're excited about the future and we expect to

Unknown Attendee, Troy Reisner

Speaker Change: We have strong financial stewardship and disciplined execution, and we look forward to reengaging you shortly.

Unknown Attendee, Troy Reisner

Speaker Change: Thank you ladies and gentlemen. This concludes today's call and you may disconnect your lines at this time and we thank you for your participation.

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