Q4 2024 Duos Technologies Group Inc Earnings Call
Speaker Change: Good afternoon. Welcome to Duos Technologies' fourth quarter and full year 2024 earnings conference call. Joining us for today's call, or Duos CEO Chuck Ferry and CFO , Adrian Goldfarb. Following their remarks, we will be opening the call for your questions.
Then, before we conclude today's call, I'll provide the necessary cautions regarding the forward-looking statements made by management during this call.
Speaker Change: Now, I would like to turn the call over to Duos CEO Chuck Ferry. Sir, please proceed.
Thank you. Welcome everyone.
Speaker Change: and thank you for joining us. Earlier today we issued our earnings press release in our 10K for 2024. Copies are available in the Investor Relations section and our website. I encourage all listeners to view press releases and our 10K pilot to better understand some of the details we'll be discussing during today's quote.
Speaker Change: We have previously discussed our strategy to diversify our business and accelerate the timeline to profitability. Since our last earnings call our team has been very busy working to execute our strategy of diversification in rail technology, edge data centers, and power, and things are going very well right now.
Speaker Change: In the last three months, we have closed the asset management agreement with New APR Energy and Fortress Investment Group, where we expect to earn approximately $42 million over the next two years.
Speaker Change: Under the asset management agreement, we have assumed control of an existing contract with the utility company in Southern California, utilizing 90 megawatts of gas turbines.
Speaker Change: We've also deployed an additional 300 megawatts of gas turbines in support of a large US-based AI data center operator.
Speaker Change: We're continuing with fleet readiness to support additional APR energy contracts in the
Speaker Change: We also conducted a ribbon-cutting ceremony to officially commercialize our first-age data center, Amarillo, Texas.
over 100 local and state officials attended.
Speaker Change: The school district's 16th ceremony, and it included senior leaders from Fiverlite, Active Tech, and Amazon Web Services.
Speaker Change: Our next two-age data centers will be installed in the coming months in Panther Texas in cooperation with APR energy as it works with the Panther Energy Center on behind the meter power opportunities in that region.
Speaker Change: Our partnership with APR and Fortress Investment Group has significantly changed the nature of our company in just the last six months and we will break even financially this year.
Speaker Change: Given this significant change after Adrian goes through the financials, I'll discuss each line of business in more detail to help investors understand how we are operating going forward.
Adrian: Thank you, Chuck. Before I cover the specific results for the fourth quarter in full year 2024, let me take a few minutes to give my perspective on what the company has achieved in the past year.
Speaker Change: Much of which is not yet reflected in the post financial results.
Schole after stepping back into the CFO position.
Speaker Change: Chuck described to me a bold and ambitious plan for the transformation of the company.
Speaker Change: His vision as described in May 2024 seemed far reaching at the time.
Speaker Change: But the management team felt that it was necessary. It was a necessary step to give the company a path to faster growth and profitability.
Speaker Change: Sometime back, the company withdrew from giving formal or even basic guidance due to the ongoing uncertainty surrounding our technology business and the segment in which we were operated negatively, the rail car industry.
Speaker Change: We came to the realization that while our technology is the standard form waste side detection as the Railroad just described it, using scanning and advanced AI processing.
Speaker Change: It's adoption by the industry would likely take much longer than this eye.
causing ongoing losses for our business.
and continuous requirement of dilutive capitalization.
Speaker Change: Chuck channels himself and the management team to take the significant assets that we have developed, including a highly capable staff and leadership team.
Speaker Change: A portfolio of intellectual property and operational excellence and evolve the business into other business areas which could capitalize on those strengths.
Speaker Change: According to me, 2024 was a transformative year that sought the creation of two new subsidiaries, Duos Edge AI and Duos Energy.
Speaker Change: and the engagement with a significant partner to build a platform for the desired revenue growth and profitability.
with that required large amounts of highly diluted capital.
Speaker Change: In fact, I'm pleased to inform you that as of December 31, 2024, the Duos Technologies Group found sheet, business backlog and estimated pipeline are the strongest in the company's history.
Speaker Change: And that our capitalization table is very clean with just common stock or equivalence in the form of preferred stock without any coupons, ratchets or other dilute of conditions.
We no longer have any warrants.
and minimal other derivatives consisting of just employee stock options.
Speaker Change: To fund our working capital needs to the lighter part of 2024, we instituted an at-the-market program using our S3 shell registration.
Speaker Change: and through careful implementation by restricting the amount of stock sold in any day raised approximately $7.5 million through the early part of this year.
Speaker Change: This had a further benefit that in combination with the news of our expansion and the signing of the largest contract in the company's history has generated considerable interest in the company and its stock, such that our average trading volumes are considerably on up in the story with the case.
Speaker Change: and we expect this trend to continue in 2025 and beyond.
Speaker Change: Interest in our company comes from a wide range of investors, including both retail and institutional investors.
Speaker Change: Chuck will be giving an extensive overview of the company's expectations for the coming year and beyond so I will restrict my remarks to the financial and anticipated outcomes from all the initiatives we are now undertaking.
Speaker Change: Let me turn now to the financial results of my related country.
Speaker Change: I will present summarized information and will refer you to our earnings PR just released as well as our 10K for in-depth disclosure and analysis.
Starting with our results for the quarter and the year.
Speaker Change: Total revenue for the fourth quarter decreased 4% to $1.46 million compared to $1.53 million.
Speaker Change: in the fourth quarter of 2023, while total revenue for the year decreased 3% 7.28 million compared to 7.47 million in 2022.
© The Bulletproof Executive 2013
Speaker Change: Much of the lack of growth and overall revenues for 2024 is due to ongoing customer drum delays related to the deployment of two high-speed, trans-focused rail car inspection
Speaker Change: I should note that during the year the company received partial compensation for those delays which increased the total contract value by $1.4 million.
Speaker Change: Services and consulting revenues increased by 31% compared to 2023, driven by the addition of new AI and subscription customers.
Speaker Change: Higher Service Contract Rising and over 900,000 in new revenue from power consulting work.
Speaker Change: Cost of revenues for the quarter increased 47% to $1.79 million compared to $1.22 million for Q4 2023.
Speaker Change: and for the year, the cost of revenues increased 11% to 6.81 million, up from 6.16 million in the same period of 2023.
Speaker Change: The increasing cost of revenues was driven by almost $1.6 million in amortization expenses.
Recorded in 2024.
Speaker Change: to offset site revenue related to non-monetary transactions for the new services and data agreement.
signed during the second quarter of 2024.
Speaker Change: Also increasing the cost of revenues with the retention of outside consultants further increasing the cost of revenue for services and consulting.
Speaker Change: which was also not present in the corresponding period of 2023, but to prepare the company for the signing of the asset management agreement, the AMA, and the expected significance revenue increases in 2025 beyond.
Speaker Change: Cost of revenues on technology systems decreased during the period compared to the equivalent period in 2023 in line with the decline in project revenues.
Speaker Change: is climbing cost-generally follows the same year-over-year trend as project revenues due to timing differences in major project work.
Speaker Change: This is primarily related to the procurement and manufacturing of transit focused ribs.
Speaker Change: As well, near the end of the manufacturing cycle, we became preparations for field insulation starting in 2025.
The cost of revenue for technology systems will decrease accordingly.
Speaker Change: In contrast, during the same period in 2023, the company was still progressing through the advanced stages of procurement.
and manufacturing for these ribs.
compared to a positive 303,000 Q4 2023.
For the year, gross margin decreased 64% to $469,000.
Down from 1.31 million in the same period of 2023.
Speaker Change: As noted above, the declining margin was primarily driven by the timing of business activity related to the two high-speed transit-focused rail car inspection purpose.
Speaker Change: Operating expenses for Q4, 2024, decreased 21% to 2.76 million compared to 3.48 million to Q4, 2023.
Speaker Change: For the year, overall operating expenses were lower by 10% to 11.45 million down from 12.76 million in the same period of 2023.
Speaker Change: This decrease was achieved despite a 43% increase in sales and marketing driven by continued investment in the commercial team, including the addition of professionals with extensive experience and leadership across the rail, edge data center and power industries.
Speaker Change: General and administration cost decreased by 18% the result of reductions in headcount and related personnel expenses as well as reductions in consulting and legal expenses compared
Speaker Change: Net operating loss for Q4 2024 total $3.09 million compared to net operating loss of $3.18 million for Q4 2023.
Speaker Change: The losses from operations for the years ended December 31, 2024 and 2023 with 10.98 and 11.45 million respectively.
Speaker Change: The decrease in losses from operations during the year was the result of planned decreases in operating expenses.
Goldfarb, Charles Ferry
Speaker Change: Net loss for the years ended to December 31, 2024 and 2023, was $10.76 and $11.24 million respectively.
Speaker Change: The decrease in overall net loss was primarily attributable to a decrease in operating costs.
Speaker Change: Net loss for common share was $1.39 and $1.56 respectively for the years and in December 31, 2024, 2023 and Improvement of $0.17 per share
Speaker Change: Our 5% holding in this business is currently valued at over $7 million.
Speaker Change: And is expected to generate profits in future years as a profits interest structure.
Speaker Change: On the liability side. The company has traditionally operated with little to no debt other than some mining minus financing contracts.
Speaker Change: Ready to insurance or equivalents.
Speaker Change: 2024, we received $2 2 million and debt funding for our initial III E D. CS and were able to secure that for around 10% cost of capital, which is an attractive rate for a company of our size.
Speaker Change: We also secured additional financing for a further three E D. CS in the form of a master capital lease.
Speaker Change: A similar cost of capital and flexible payment terms as we deploy these assets in preparation for the associated cash flows.
Speaker Change: I'm also pleased to announce that in early 2025, we have retired $1 million of this debt and expect to retire a further $1 2 million by the end of this year, keeping our leverage ratios within reasonable limits.
Speaker Change: Next I would like to discuss our backlog and pipeline.
With the signing of the asset management agreement with fortress investment group for the management and operations of New APR energy <unk>.
Speaker Change: Initial deployment of our edge data centers and current and expected contracts in our rail business at the end of the year.
Speaker Change: Contracts and backlog represented more than $50 million in revenue with approximately 45% or more of that expect to be recognized in 2025.
Speaker Change: We also have a pipeline of business between <unk> do us in APR energy related business of more than $500 million.
Speaker Change: Some of which may translate into additional contracts in backlog due us.
Speaker Change: I plan to give further updates on our progress in upcoming earnings call.
Speaker Change: As discussed I am pleased to announce that we are re instituting financial guidance and that due to the considerable improvements in the business in the last six months, we expect that our results will be more consistent than in previous years or quite frankly in the history of the company.
Speaker Change: Accordingly ears that formal guidance for 2020 volume.
Speaker Change: For the year, we expect to record between 28 and $30 million in revenue and consolidated revenue from our three subsidiaries.
Speaker Change: Although we do not normally give quarterly guidance, we expect that revenue for Q1 will be in the range of $4 million to $5 million and then build consistently throughout the year.
Speaker Change: With respect to earnings our initial expectation is to lose some money in the first half as we transitioned and built a new businesses, but plans to minimize this as much as possible by some expense reductions in our rail business to match the expected business from that segment.
Speaker Change: However, I'm very pleased to report that we expect to breakeven and then make money in the third and fourth quarters and end the full year with positive adjusted EBITDA, the major adjustment being for noncash stock compensation.
Speaker Change: Lastly, we expect to raise between 10 and $15 million through our S. Three shelf registration to support the rapidly growing edge data center business in order to acquire an additional nine edc's for deployment by year end, which will put us in the position of exiting 2025.
Speaker Change: With an expected $3.5 million in high margin annual recurring revenue from that business and position us for further growth in 2026 and beyond.
Speaker Change: This concludes my formal remarks and at this point I will turn the call back to Chuck for his commentary.
Chuck Ferry: Thank you Peter.
Chuck Ferry: Over the last several months, we have added many new investors along with additional analyst coverage. So I'm going to review what our three lines of business two along with the opportunities and risks for each.
Again, with our legacy business, which is the railcar inspection portal.
Chuck Ferry: Although this has had slow growth in the last four years it may become less important for our future understanding but understanding it is essential to know why it has allowed us the ability now to diversified edge computing and power.
Chuck Ferry: You will technology specializing automated railcar inspection systems that combine advanced imaging technology with artificial intelligence or.
Chuck Ferry: Our flagship flagship products, the railcar inspection portals scans fast moving freight.
Chuck Ferry: Passenger trains producing high resolution images and sensor data from railcars as they pass through at speeds of up to 125 miles per hour.
Chuck Ferry: These inspection portals use a patented solution.
Chuck Ferry: Hardware software.
Chuck Ferry: And artificial intelligence to create the ability in real time to identify mechanical defects structural issues safety concerns and unauthorized human presence.
Chuck Ferry: This automated inspection process augments and could potentially replace traditional manual inspections detect and problems that human inspectors by Miss while eliminating the need to stop trains for physical examination, thereby saving railroad operators substantial time and operational costs.
Chuck Ferry: The railcar inspection portal evolved from experimental prototypes developed Baidu also beginning in 2015 and.
Chuck Ferry: And today, we operate portals for CN CSS CP Casey fair mix and are on track.
Chuck Ferry: In addition to these railroads that the rail administration and rail Labor Union leadership have expressed strong support for our technology.
Chuck Ferry: Perhaps a validation of our technology.
Chuck Ferry: That Norfolk, Southern and our partnership with Georgia Technical Institute is copied our patented solution and begun to deploy them on their network, which is why we have initiated legal action against them for patent infringement.
Chuck Ferry: Despite its technical merits the ramp on inspection portal has struggled with widespread adoption, mostly due to the rail industry is conservative nature and slow adoption cycles. All of that said this technology still has high potential and while well and while going slow it is inevitable that it will be adopted.
Chuck Ferry: In the coming years.
Chuck Ferry: So now the opportunity is to shift towards a subscription business that produces more predictable recurring revenue for us and expands and diversifies our customer base currently.
Chuck Ferry: Currently we are in discussions with more than 50, other potential, Colorado shippers and short line railroads.
Chuck Ferry: Our railcar inspection portals ability to detect human presence is drawn interest from the department of Homeland security and customs and border protection.
Chuck Ferry: The challenges for this business are first.
Chuck Ferry: First as a traditional manual inspection process. This continues to be the required approached by regulation.
Chuck Ferry: It is lower upfront costs, but is significantly more labor intensive and prone to human error or solution is designed to turn finders into fixtures set.
Chuck Ferry: Second our competitors include web test through their kinetics Division and.
Chuck Ferry: Ensco, who purchased Kilby labs Wi D.
Chuck Ferry: Cameron you all participate in the visual and optical railcar inspection systems market.
Third is our potential rail customers could develop their own systems.
Chuck Ferry: We've spoken about the patent infringement by Norfolk, Southern which we will vigorously pursue.
Chuck Ferry: Here are the advantages of our patented solution.
Chuck Ferry: Data processing of the entire train concepts has completed a one minute and immediately available for our edge computing processing.
Chuck Ferry: The same technology that we're deploying in our edge data center business, which eliminates latency issues presence in cloud based computing.
Chuck Ferry: Our technology can do inspections at up to 125 miles per hour versus our competitors tend to 30 miles per hour.
Chuck Ferry: Technology can also be used just as easily just scan automobiles trucks and aircrafts.
Chuck Ferry: Now, let's discuss duo stay Jr, which is which is a subsidiary we established last summer, which evolved from our edge computing experienced used with our railcar inspection technology.
Chuck Ferry: Which requires powerful edge computing to process images and artificial intelligence.
Chuck Ferry: Last year, we recruited Doug record, a former marine with many years of experience in data centers, who had also been a duals customer.
Chuck Ferry: <unk> background includes service in the Marine Board as an integral infantryman.
Chuck Ferry: Experience in the telecom industry and he also founded and sold two successful data center companies.
Chuck Ferry: He built Colo five or 225000 square foot facility, serving over 100 clients, which was sold to Corelogic, Inc. 2014.
Chuck Ferry: Additionally, he founded edge presence of 2017, which he deployed edge data centers across five states before being acquired by ubiquity in 2023.
Chuck Ferry: His industry experience and connections prove vital for securing our reaching 16.
Chuck Ferry: Pampa, Texas customers and he is currently managing a pipeline of more than 200 interested customers simply.
Chuck Ferry: Simply said the demand for edge computing as easily on par with a similar demand for big box data centers and power.
Chuck Ferry: <unk> core product is a modular data center measuring 55 feet long by 13 feet wide.
Chuck Ferry: It houses 15, <unk> with integrated power and cooling.
Chuck Ferry: Each pod supports 300 to 350 kilowatts of by T load with N plus one redundancy for cool cool power and cooling systems matching traditional datacenter reliability standards.
Chuck Ferry: Pods manufactured by our strategic partner <unk>, who can produce more than 20 units monthly.
Chuck Ferry: Employment includes transporting the pod to the site install it onto a concrete pad connecting power and fiber and final testing.
Chuck Ferry: Currently do also only provides pod infrastructure.
Chuck Ferry: Or what folks would call a powered shell that includes racks power cooling and redundant fiber.
Chuck Ferry: Customers and fiber providers installed equipment in.
Chuck Ferry: In the future, we may consider offering an edge cloud computing capability, but for now we're sticking to the current format.
Chuck Ferry: Our initial focus is it Texas school districts, where we commercialize our first part at the region 16 Education Service Center in Amarillo that serves over 50 Rural school districts across 26000 square miles that previously relied on costly low bandwidth connections to Dallas. These.
Chuck Ferry: These edge data centers reduce latency typically experienced that rural towns.
Chuck Ferry: And creates new regional internet exchanges, providing faster connectivity through carrier redundancy, while enabling local cloud fashion.
Chuck Ferry: Hi.
Speaker Change: Our plan is to track.
Chuck Ferry: Our plan is on track to install a total of 15 parts by the end of 2025.
Speaker Change: And Doug Adrian and I are working on plans to accelerate that.
Speaker Change: Unlike competitors focus on urban infrastructure via telco offices or cell phone towers, we are targeting rural broadband enhancement aligning with government funding that indirectly subsidize these projects, which is often overlooked by larger data center developers and operators.
Speaker Change: The opportunity here is we are in a market that currently doesn't have much competition the demand for edge computing is very high our custom.
Speaker Change: Customers in rural areas really need this and the availability of getting new edge data centers manufacturer is good.
Speaker Change: Well at scale.
Speaker Change: Financially. It provides good recurring revenue with gross margins expected to be in the 70 percentile range and pay up for a new pod is about two years of asset that will produce revenue for at least 10 years or more.
The long term vision is to deploy 150 to 200 pods by the end of 2027.
Speaker Change: Essentially generating 60% to $65 million in annual recurring revenue.
Speaker Change: This growth will require strategic partnering to obtain the capital necessary and our team is generating options for that.
Speaker Change: Our third and newest subsidiaries <unk> Energy Corporation that is primarily focused on delivering on the asset management agreement, we have with APR energy and fortress investment group.
Speaker Change: It is essentially the service company that enables APR energy, who owns the assets to find new contracts engineer procure construct and operate fast power plants.
Speaker Change: Now I've spoken before about the experience of our team I have letting this kind of power business.
Speaker Change: I knew that the demand for the for behind the meter power was very high in the U S data center market, which is why we pursued this opportunity, but my team and I have never seen so much demand for these type of generation assets and.
Speaker Change: The APR energy has built a pipeline of opportunities that greatly exceeds 850 megawatts that we currently own and more calls are coming in every day.
Speaker Change: I also knew that there were synergies between the power and edge data center business before we close this deal, but I didn't really realize how strong it was our efforts to sell edge data centers past few months has led us directly to several power and data center development deals and vice versa.
Speaker Change: As I stated earlier in the first three months of operation, we have contracted for 390 megawatts and we expect to deploy another 240 megawatts for the summer, peaking period.
Speaker Change: There is certainly no shortage of traditional or data center power opportunities.
Speaker Change: Creating robust work for duals under the asset management agreement.
Speaker Change: Like our other lines of business operational excellence is our number one goal.
Speaker Change: Creates happy customers drive new opportunities and earns a reputation as a company people want to do business with.
Speaker Change: One of the advantages of the asset management agreement with APR energy is that our staff was ready on day, one to begin deploying assets.
Speaker Change: Currently the team is deploying 180 megawatts of contract contracted turbines.
Speaker Change: And preparing an additional 240 megawatts of generation for future work.
Speaker Change: This is a major endeavor given the speed at which a pure energy is closing new contracts.
Speaker Change: All the activities and talent to execute project management engineering design develop and build materials procurement logistics maintenance and installation are in full motion right now.
Speaker Change: <unk> operations teams handling all of it in stride and his experience at multiple simultaneous deployments.
Speaker Change: In conclusion, our business has made significant changes in just the last six to nine months. We are now diversified into two areas high growth edge data centers and power, which de risks our sole reliance on the rail technology business and will enable meaningful growth and profitability by the end of this year.
Speaker Change: As always I want to thank our business partners board of directors and our shareholders for their continued support.
Speaker Change: Outlook for do also looks very promising right now and I am excited to be able to lead it.
Speaker Change: Thanks for listening and we'll now open the call for your questions.
Speaker Change: Operator, please provide the appropriate instructions.
Speaker Change: Thank you we will now be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if he would like to remove your question from the queue.
Speaker Change: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
Speaker Change: One moment, please pull for questions.
Speaker Change: Our first question comes from Ed Woo with <unk> capital. Please proceed with your question.
Speaker Change: Yes, congratulations on all the progress you made my question is on rail safety legislation with the New administration as you know we're further and further away were moved from one to Ohio derailment happened have you noticed any change in terms of People's legislature appetite for rail safety.
Speaker Change: Yeah, No I appreciate it.
Speaker Change: I think on the railway safety Act, which under the by the administration, but a lot of effort.
Speaker Change: Was being made both in the Senate and the house of Representatives trying to push something through and ultimately did not get through.
Speaker Change: And it really didn't really gets fun.
Speaker Change: With the with both sides.
Speaker Change: At least on the floor.
Speaker Change: I think the sense right now that I get from discussions that I've had with the F. R E.
Speaker Change: Some of our class one customers and other rail industry stakeholders is that we could still see some safety regulations go through.
Speaker Change: I do think however, given the current administration the likelihood that any.
Speaker Change: Any significant regulations being passed or is probably unlikely.
Speaker Change: At least that's the way we've kind of been planning things that of course can always change, but I think the likelihood of a real comprehensive.
Speaker Change: Set of regulations coming out through legislation right now I think it's probably much lower than it was prior to the Trump administration coming into office.
Speaker Change: Oh, great. Thanks Firsthand. My question. My last question is you know with a lot of tariff uncertainties has that impacted any.
Speaker Change: Customers, who are going to sign up for edge data centers or your power contracts.
Speaker Change: Yeah, right now the threat of tariffs and Theyre coming I think everybody would agree with me.
Speaker Change: In some fashion or form it has not impacted our business yet.
Speaker Change: I think areas that where we could see some impacts is primarily.
Speaker Change: Probably the cost of raw materials.
Speaker Change: So we used our steel and aluminum in our railcar inspection portal that being said most of our railcar inspection portal, even raw materials come from within the United States. So we will have to wait and see what kind of impacts on that particular business on the edge data center side are a strategic partner Accu Chek.
Speaker Change: <unk>.
Speaker Change: We already had a discussion around this topic.
Speaker Change: They are taken measures.
Speaker Change: To make.
Speaker Change: Make it so.
Any tariff impacts are minimized, but again in terms of raw material costs.
Speaker Change: There could potentially be some risk there, but but right now we have not been impacted by that on the power side.
Speaker Change: No immediate impacts right there because right now we.
Speaker Change: Through the asset management agreement.
Speaker Change: And partner with APR energy, you're effectively we own those assets outright.
Speaker Change: And there are already all here in the United States.
Speaker Change: They are primarily intended to.
Speaker Change: To be deployed in the United States up against U S data centers, although we are considering a couple of.
Speaker Change: Hi.
Speaker Change: The potential contracts or in overseas locations.
Speaker Change: And we will probably wait and see how the tariffs.
Speaker Change: Come out.
Speaker Change: Before we act on any of those international.
Speaker Change: Jurisdictions, but.
Speaker Change: Hopefully that gives you kind of a sense of where we're at on the tariffs.
Speaker Change: Yes, yes. It does thank you very much and I wish you guys. Good luck. Thank you.
Ed: Thank you Ed.
Ed: Okay.
Ed: Northland Capital markets. Please proceed with your question.
Yeah, Hi, this is Vincent there are far Mike Lattimore of a couple of questions.
Speaker Change: And how many data centers are operational now on do you expect to add a similar amount each quarter to reach your 15 by E. Tran.
Speaker Change: Yeah No I appreciate the question yes.
Speaker Change: Yes. Currently we have one data center that is fully commercialized and now beginning to produce revenue that's with the school district 16 in the Panhandle of Texas.
Speaker Change: We currently have two additional edge data centers that are deployed.
Speaker Change: In Pampa, Texas.
Speaker Change: That are scheduled to be <unk>.
Speaker Change: They're in the middle of installation there'll be finalized here in the next month or so.
Speaker Change: And we pretty much play into poorly put in about two to three.
Speaker Change: These edge data centers each quarter at this moment.
Speaker Change: By the end of the year, we'll have 15 in right now that plan is on track.
Speaker Change: We obviously currently owned.
Speaker Change: Six of those edge data centers and so as Adrian discussed during his earnings as part of the earnings call.
We're going to make moves to ensure that we can purchase the nine additional and we already have the customers that have already.
Speaker Change: Already agreed that they want them so binding.
Speaker Change: Finding homes for this.
Speaker Change: These edge data centers has been fairly easy and quick.
Speaker Change: Now, we're just trying to accelerate that now that we've got the first one in.
Speaker Change: And again, we kind of exercised or our construction and installation muscles on that first wanted to know if that's going to start going a lot faster.
Speaker Change: Got it.
Speaker Change: And that in fact, a continuation to that is do you see a high potential for winning a hyperscale or when do you still view that as an upside to the guidance of reaching 15 data centers.
Speaker Change: Yes, we are in active discussions with.
Five or six of the largest hyperscale or in the country.
Speaker Change:
One of the.
Speaker Change: One of those Hyperscale orders is actually using some of our power turbines right now.
Speaker Change: At a large AI data center.
Speaker Change: And we're seeing interest from the Hyperscale orders not just for our power.
Speaker Change: And not just at Big box data centers. They are also interested.
Speaker Change: He and our edge data centers as well so one of the.
Speaker Change: Amazon Web services attended the opening ceremony of our edge data center in Amarillo, Texas.
Speaker Change: We had a.
Speaker Change: Very nice conversation with that with that team.
Speaker Change: And if they are interested in both the large data centers, where we can provide power as well as our edge datacenter computed.
Bob: Understood. Thank you thanks, Bob.
Bob: Okay. So at this at this time.
Yes go ahead.
Speaker Change: Go ahead operator.
Speaker Change: Oh I was just going to say at this time our question and answer session has concluded and I would now like to turn the call back over to you Mr Ferry for closing remarks.
Speaker Change: Yes. It is.
Speaker Change: As always before we can.
Speaker Change: Want to.
Speaker Change: Just to thank everybody for joining the call.
Speaker Change: Thanks for watching us and stay tuned because our business is about to get much larger.
Speaker Change: And become profitable this year. So thank you for your time back to you operator.
Speaker Change: Before we conclude today's call I would now like to provide <unk> safe Harbor statement that includes important cautions regarding forward looking statements made during the call.
Speaker Change: This earnings call contains forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995 forward looking terminology such as believes expects may will should anticipate plans and their opposite or similar expressions are intended to identify forward looking statements.
Speaker Change: We caution you that these statements are not guarantees of future performance or events and are subject to a number of uncertainties risks and other influences many.
Speaker Change: Of which are beyond our control, which may influence the accuracy of these statements and the projections upon which the statements are based and could cause.
Speaker Change: Actual results could differ materially from these anticipated by the forward looking statements.
Speaker Change: These risks and uncertainties include but are not limited to those described in item one a in doses annual tariff annual report on Form 10-K, which is expressly incorporated herein by reference and other factors as may periodically be described in <unk> filings with the FCC.
Speaker Change: Thank you for joining us today, Andrew with technologies group's fourth quarter and full year 2024 earnings call you may now disconnect.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Uh huh.
Speaker Change: Uh huh.
Speaker Change: Yes.
Speaker Change: Yeah.
Speaker Change: [music].