Q2 2026 Data Storage Corp Earnings Call & Business Update

August 14, 2026

Speaker #1: Greetings, and welcome to the Data Storage Corporation second quarter 2026 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation.

Operator: Greetings and welcome to the Data Storage Corporation Q2 2026 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Alexandra Schilt, Investor Relations. Thank you. You may begin.

Operator: Greetings and welcome to the Data Storage Corporation Q2 2026 Earnings Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Alexandra Schilt, Investor Relations. Thank you. You may begin.

Speaker #1: If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Alexandra Schilt, Investor Relations.

Speaker #1: Thank you. You may begin.

Speaker #2: Thank you. Good morning, everyone, and welcome to Data Storage Corporation's 2026 second quarter business update conference call. On the call with us this morning are Chuck Peluso, Chairman and Chief Executive Officer, and Chris Panagiotakos, Chief Financial Officer.

Alexandra Schilt: Thank you. Good morning, everyone, and welcome to Data Storage Corporation's 2026 Q2 business update conference call. On the call with us this morning are Chuck Piluso, Chairman and Chief Executive Officer, and Christos Panagiotakos, Chief Financial Officer. The company issued a press release this morning containing its 2026 Q2 financial results, which is also posted on the company's website. If you have any questions after the call or would like any additional information about the company, please contact Crescendo Communications at 212-671-1020. Before we begin, please note that today's call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially due to various risks and uncertainties described in the company's filings with the SEC.

Alexandra Schilt: Thank you. Good morning, everyone, and welcome to Data Storage Corporation's 2026 Q2 business update conference call. On the call with us this morning are Chuck Piluso, Chairman and Chief Executive Officer, and Chris Panagiotakos, Chief Financial Officer. The company issued a press release this morning containing its 2026 Q2 financial results, which is also posted on the company's website. If you have any questions after the call or would like any additional information about the company, please contact Crescendo Communications at 212-671-1020. Before we begin, please note that today's call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially due to various risks and uncertainties described in the company's filings with the SEC.

Speaker #2: The company issued a press release this morning containing its Q2 2026 financial results, which is also posted on the company's website. If you have any questions after the call, or would like any additional information about the company, please contact Crescendo Communications at 212-671-1020.

Speaker #2: Before we begin, please note that today's call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially due to various risks and uncertainties described in the company's filings with the SEC.

Speaker #2: Except as required by law, the company assumes no obligation to update or revise forward-looking statements. I'd now like to turn the call over to Charles Piluso.

Alexandra Schilt: Except as required by law, the company assumes no obligation to update or revise forward-looking statements. I would now like to turn the call over to Chuck Piluso. Please go ahead, Chuck.

Speaker #2: Please go ahead, Chuck.

Speaker #3: Thank you, Ellie. Good morning, everyone. We appreciate everyone joining us today. The second quarter advanced the transformation of Data Storage Corporation following the sale of Cloud First.

Charles M. Piluso: Thank you, Allie. Good morning, everyone. We appreciate everyone joining us today. The Q2 advanced transformation of Data Storage Corporation following the sale of CloudFirst. We are operating from a focused position with a clear mandate, deploy capital with discipline, explore acquisitions, building sustainable recurring revenue, consider opportunities for merging and meaningful value for shareholders. There are three points I want investors to take away from this call today. First, Nexxis is performing. The revenue from continuing operations increased 9.3% year over year, and the business delivered year over year growth in both revenue and gross profit. Nexxis gives us recurring revenue and operating foundation in communications and connectivity while we execute a broader strategy. Second, our balance sheet gives us the ability to act.

Chuck Piluso: Thank you, Ally. Good morning, everyone. We appreciate everyone joining us today. The Q2 advanced transformation of Data Storage Corporation following the sale of CloudFirst. We are operating from a focused position with a clear mandate, deploy capital with discipline, explore acquisitions, building sustainable recurring revenue, consider opportunities for merging and meaningful value for shareholders. There are three points I want investors to take away from this call today. First, Nexxis is performing. The revenue from continuing operations increased 9.3% year-over year, and the business delivered year over year growth in both revenue and gross profit. Nexxis gives us recurring revenue and operating foundation in communications and connectivity while we execute a broader strategy. Second, our balance sheet gives us the ability to act.

Speaker #3: We are operating from a focused position with a clear mandate: deploy capital with discipline, explore acquisitions, build sustainable recurring revenue, consider opportunities for merging, and create meaningful value for shareholders.

Speaker #3: There are three points I want investors to take away from this call today. First, Nexus is performing. Revenue from continuing operations increased 9.3% year-over-year, and the business delivered year-over-year growth in both revenue and gross profit.

Speaker #3: Nexus gives us recurring revenue and an operating foundation in communications and connectivity, while we execute a broader strategy. Second, our balance sheet gives us the ability to act. We ended the period with approximately $9.3 million in cash and marketable securities, and no long-term debt.

Charles M. Piluso: We ended the period with approximately $9.3 million in cash and marketable securities and no long-term debt, as well as a streamlined corporate structure. That capital is something we intend to deploy, and we are not deploying capital just for the sake of doing transactions. We intend to be selective, valuation conscious, and focused opportunities where we believe we can build durable earning power. Third, our strategic pipeline is active. We are evaluating businesses and opportunities across AI infrastructure, cybersecurity, communications, software, and other related technology markets. The common thread is straightforward: recurring revenue, predictable cash flow, strong customer relations, capable management teams, and a path to operational and financial growth. Our strategy is simple. Partner with technology businesses that have compelling products but need resources and capital to scale. We are focused on areas including GPU infrastructure, AI-enabled software, cybersecurity, and telecommunications.

Chuck Piluso: We ended the period with approximately $9.3 million in cash and marketable securities and no long-term debt, as well as a streamlined corporate structure. That capital is something we intend to deploy, and we are not deploying capital just for the sake of doing transactions. We intend to be selective, valuation conscious, and focused opportunities where we believe we can build durable earning power. Third, our strategic pipeline is active. We are evaluating businesses and opportunities across AI infrastructure, cybersecurity, communications, software, and other related technology markets.

Speaker #3: As well as a streamlined corporate structure, that capital is something we intend to deploy. And we're not deploying capital just for the sake of doing transactions.

Speaker #3: We intend to be selective, valuation-conscious, and focused on opportunities where we believe we can build durable earning power. Third, our strategic pipeline is active. We are evaluating businesses and opportunities across AI infrastructure, cybersecurity, communications, software, and other related technology markets.

Speaker #3: The common thread is straightforward: recurring revenue, predictable cash flow, strong customer relations, capable management teams, and a path to operational and financial growth. Our strategy is simple: partner with technology businesses that have compelling products but need resources and capital to scale.

Chuck Piluso: The common thread is straightforward: recurring revenue, predictable cash flow, strong customer relations, capable management teams, and a path to operational and financial growth. Our strategy is simple. Partner with technology businesses that have compelling products but need resources and capital to scale. We are focused on areas including GPU infrastructure, AI-enabled software, cybersecurity, and telecommunications.

Speaker #3: We are focused on areas including GPU infrastructure, AI-enabled software, cybersecurity, and telecommunications. We believe the NASDAQ-listed platform and operating experience, along with our capital position, can be meaningful advantages when paired with the right business.

Charles M. Piluso: We believe the Nasdaq-listed platform and operating experience and our capital position can be meaningful advantages when paired with the right business. We are not trying to assemble a collection of unrelated assets. We are working to build a portfolio of technology businesses that are synergistic and the potential to scale. We also believe our current structure gives us several ways to create value. An acquisition adds recurring revenue and earnings. A strategic investment or partnership can provide exposure to attractive markets while allowing us to manage the risk. And internally developed initiatives can create additional opportunities when they are supported by customer demand. We are maintaining discipline around valuation and structure. Having capital available does not mean we need to deploy it immediately. We would rather preserve our flexibility than pursue a transaction that does not meet our strategic and financial criteria.

Chuck Piluso: We believe the Nasdaq-listed platform and operating experience and our capital position can be meaningful advantages when paired with the right business. We are not trying to assemble a collection of unrelated assets. We are working to build a portfolio of technology businesses that are synergistic and the potential to scale. We also believe our current structure gives us several ways to create value. An acquisition adds recurring revenue and earnings. A strategic investment or partnership can provide exposure to attractive markets while allowing us to manage the risk.

Speaker #3: We're not trying to assemble a collection of unrelated assets. We're working to build a portfolio of technology businesses that are synergistic and have the potential to scale.

Speaker #3: We also believe our current structure gives us several ways to create value. An acquisition adds recurring revenue and earnings. A strategic investment or partnership can provide exposure to attractive markets while allowing us to manage the risk.

Speaker #3: And, internally, development initiatives can create additional opportunities when they are supported by customer demand. We are maintaining discipline around valuation and structure. Having capital available does not mean we need to deploy it immediately.

Chuck Piluso: And internally developed initiatives can create additional opportunities when they are supported by customer demand. We are maintaining discipline around valuation and structure. Having capital available does not mean we need to deploy it immediately. We would rather preserve our flexibility than pursue a transaction that does not meet our strategic and financial criteria.

Speaker #3: We would rather preserve our flexibility than pursue a transaction that does not meet our strategic and financial criteria. When we commit shareholder capital, we want a clear rationale for why that business belongs within DTST, and how that investment can create value over time.

Charles M. Piluso: When we commit shareholder capital, we want a clear rationale for why that business belongs within DTST and how that investment can create value over time. That framework also shapes how we evaluate acquisitions. We are looking beyond headline revenue growth. We want businesses where the quality of the revenue is attractive, where customers have a reason to stay, and where the underlying economics can support sustainable earnings over time. We also want management teams to know their markets and can continue to operate as part of a larger platform. Let me spend a few moments on Nexxis. Nexxis provides fully managed business voice, internet, data transport, and SD-WAN solutions designed for the enterprise. It is enterprise-grade reliability and a simplified operation. Its model is built around recurring revenue, high touch support, and integrated connectivity.

Chuck Piluso: When we commit shareholder capital, we want a clear rationale for why that business belongs within DTST and how that investment can create value over time. That framework also shapes how we evaluate acquisitions. We are looking beyond headline revenue growth. We want businesses where the quality of the revenue is attractive, where customers have a reason to stay, and where the underlying economics can support sustainable earnings over time. We also want management teams to know their markets and can continue to operate as part of a larger platform. Let me spend a few moments on Nexxis. Nexxis provides fully managed business voice, internet, data transport, and SD-WAN solutions designed for the enterprise. It is enterprise-grade reliability and a simplified operation. Its model is built around recurring revenue, high touch support, and integrated connectivity.

Speaker #3: That framework also shapes how we evaluate acquisitions. We are looking beyond headline revenue growth. We want businesses where the quality of the revenue is attractive, where customers have a reason to stay, and where the underlying economics can support sustainable earnings over time.

Speaker #3: We also want management teams to know their markets and continue to operate as part of a larger platform. Let me spend a few moments on Nexus.

Speaker #3: Nexus provides fully managed business voice, internet, data transport, and SD-WAN solutions designed for the enterprise. It is enterprise-grade reliability and a simplified operation. Its model is built around recurring revenue, high-touch support, and integrated connectivity.

Speaker #3: For customers, that can mean fewer vendors, better visibility, greater resiliency, and a single point of accountability. For DTST, it provides a stable operating base as we pursue our next stage of growth.

Charles M. Piluso: For customers, that can mean fewer vendors, better visibility, greater resiliency, and a single point of accountability. For DTST, it provides a stable operating base as we pursue our next stage of growth. Our objective is to continue supporting Nexxis while remaining focused on the larger opportunity in front of us. Using the platform and the capital we have today to expand the scale and earnings capacity of the company. We believe the combination of existing recurring revenue business and disciplined growth can create a stronger and more valuable enterprise over time. The 9.3% year-over-year increase in revenue from continuing operations is encouraging because it demonstrates that this operating foundation continues to move forward while we pursue a broader strategy.

Chuck Piluso: For customers, that can mean fewer vendors, better visibility, greater resiliency, and a single point of accountability. For DTST, it provides a stable operating base as we pursue our next stage of growth. Our objective is to continue supporting Nexxis while remaining focused on the larger opportunity in front of us. Using the platform and the capital we have today to expand the scale and earnings capacity of the company. We believe the combination of existing recurring revenue business and disciplined growth can create a stronger and more valuable enterprise over time. The 9.3% year-over-year increase in revenue from continuing operations is encouraging because it demonstrates that this operating foundation continues to move forward while we pursue a broader strategy.

Speaker #3: Our objective is to continue supporting Nexus while remaining focused on the larger opportunity in front of us, using the platform and the capital we have today to expand the scale.

Speaker #3: And earnings capacity of the company. We believe the combination of our existing recurring revenue business and disciplined growth can create a stronger and more valuable enterprise over time.

Speaker #3: The 9.3% year-over-year increase in revenue from continuing operations is encouraging because it demonstrates that this operating foundation continues to move forward while we pursue a broader strategy.

Speaker #3: We view Nexus not simply as a legacy business, but as an operating asset that gives DTST recurring customer relations, market presence, and practical experience supporting critical enterprise communications environments.

Charles M. Piluso: We view Nexxis not simply as a legacy business, but as an operating asset that gives DTST recurring customer relations, market presence, and practical experience supporting critical enterprise communications environments. We believe the work we are doing now can materially reshape DTST over time. The opportunity is to take a focused public company platform, a growing recurring revenue operating business, and available capital and use those assets to build a greater scale and stronger earning power. Today, DTST defined by focus and optionality. We have an operating business that is growing a debt-free capital structure, a clear acquisition framework. We do not need to force a transaction. We can wait for the right opportunity. When we find it, we believe we have the platform and resources. Our priority is not activity, it is value creation.

Chuck Piluso: We view Nexxis not simply as a legacy business, but as an operating asset that gives DTST recurring customer relations, market presence, and practical experience supporting critical enterprise communications environments. We believe the work we are doing now can materially reshape DTST over time. The opportunity is to take a focused public company platform, a growing recurring revenue operating business, and available capital and use those assets to build a greater scale and stronger earning power. Today, DTST defined by focus and optionality. We have an operating business that is growing a debt-free capital structure, a clear acquisition framework. We do not need to force a transaction. We can wait for the right opportunity. When we find it, we believe we have the platform and resources. Our priority is not activity, it is value creation.

Speaker #3: We believe the work we are doing now can materially reshape DTST over time. The opportunity is to take a focused public company platform, a growing recurring revenue operating business, and assets to build greater scale and stronger earning power.

Speaker #3: Today, DTST is defined by focus and optionality. We have an operating business that is growing, a debt-free capital structure, and a clear acquisition framework. We do not need to force a transaction.

Speaker #3: We can wait for the right opportunity, and when we find it, we believe we have the platform and resources. Our priority is not activity; it is value creation.

Speaker #3: Now, I'd like to turn it over to Chris Panagiotakos, our CFO, for a review of the financial results. Chris?

Charles M. Piluso: Now I'd like to turn it over to Christos Panagiotakos, our CFO, for a review of the financial results. Chris?

Chuck Piluso: Now I'd like to turn it over to Christos Panagiotakos, our CFO, for a review of the financial results. Chris?

Speaker #2: Thank you, Chuck. Good morning, everyone. As previously discussed, on September 11, 2025, we closed the sale of our cloud-first business for $40 million. As a result of the transaction, and in accordance with auditing and reporting standards, our ongoing financial reporting now reflects only our continuing operations, specifically our Nexus subsidiary.

Christos H. Panagiotakos: Thank you, Chuck. Good morning, everyone. As previously discussed, on 11 September 2025, we closed the sale of our CloudFirst business for $40 million. As a result of the transaction, in accordance with auditing and reporting standards, our ongoing financial reporting now reflects only our continuing operations, specifically our Nexxis subsidiary. Sales from continuing operations were $359,000 for the three months ended 30 June 2026, an increase of $31,000 or 9.3% compared to $328,000 in the prior year period. The increase was primarily attributable to continued growth in our Nexxis voice and data solutions business, driven by the addition of new customers and increased spending from existing customers.

Chris Panagiotakos: Thank you, Chuck. Good morning, everyone. As previously discussed, on 11 September 2025, we closed the sale of our CloudFirst business for $40 million. As a result of the transaction, in accordance with auditing and reporting standards, our ongoing financial reporting now reflects only our continuing operations, specifically our Nexxis subsidiary. Sales from continuing operations were $359,000 for the three months ended 30 June 2026, an increase of $31,000 or 9.3% compared to $328,000 in the prior year period. The increase was primarily attributable to continued growth in our Nexxis voice and data solutions business, driven by the addition of new customers and increased spending from existing customers.

Speaker #2: Sales from continuing operations were $359,000 for the three months ended June 30, 2026, an increase of $31,000, or 9.3%, compared to $328,000 in the prior year period.

Speaker #2: The increase was primarily attributable to continued growth in our Nexus voice and data solutions business, driven by the addition of new customers and increased spending from existing customers.

Speaker #2: Revenue growth during the period reflects continued demand for our voice and data connectivity solutions and an expansion of services within our existing customer base. Gross profits for the three months ended June 30, 2026, were $168,000, an increase of $30,000 or 21.9% compared to $138,000 in the prior period.

Christos H. Panagiotakos: Revenue growth during the period reflects continued demand for our voice and data connectivity solutions and expansion of services within our existing customer base. Gross profits for the three months ended 30 June 2026 was $168,000, an increase of $30,000 or 21.9% compared to $138,000 in the prior period. Our gross profit margin improved to 47% from 42.1% in the prior period, driven by favorable sales mix and operating leverage. Selling general and administrative expenses for the three months ended 30 June 2026 increased $362,000, or 33.2% to $1.5 million from $1.1 million for the three months ended 30 June 2025.

Chris Panagiotakos: Revenue growth during the period reflects continued demand for our voice and data connectivity solutions and expansion of services within our existing customer base. Gross profits for the three months ended 30 June 2026 was $168,000, an increase of $30,000 or 21.9% compared to $138,000 in the prior period. Our gross profit margin improved to 47% from 42.1% in the prior period, driven by favorable sales mix and operating leverage. Selling general and administrative expenses for the three months ended 30 June 2026 increased $362,000, or 33.2% to $1.5 million from $1.1 million for the three months ended 30 June 2025.

Speaker #2: Our gross profit margin improved to 47% from 42.1% in the prior period, driven by favorable sales mix and operating leverage. Selling, general, and administrative expenses for the three months ended June 30, 2026, increased $362,000, or 33.2%, to $1.5 million from $1.1 million for the three months ended June 30, 2025.

Speaker #2: The increase was primarily driven by a $328,000, or 99.1%, increase in non-cash stock-based compensation as a result of grants to certain executives and employees.

Christos H. Panagiotakos: The increase was primarily driven by a $328,000, or 99.1% increase in non-cash stock-based compensation as a result of grants to certain executives and employees, an increase in professional fees of $58,000 or 26.2% attributable to higher fees paid relating to legal and consulting services during the period. Net loss attributable to common shareholders for the 3 months ended 30 June 2026 was $1.2 million, compared to the net loss of $732,000 for the 3 months ended 30 June 2025. We ended the quarter with cash and marketable securities of approximately $9.3 million at 30 June 2026.

Chris Panagiotakos: The increase was primarily driven by a $328,000, or 99.1% increase in non-cash stock-based compensation as a result of grants to certain executives and employees, an increase in professional fees of $58,000 or 26.2% attributable to higher fees paid relating to legal and consulting services during the period. Net loss attributable to common shareholders for the 3 months ended 30 June 2026 was $1.2 million, compared to the net loss of $732,000 for the 3 months ended 30 June 2025. We ended the quarter with cash and marketable securities of approximately $9.3 million at 30 June 2026.

Speaker #2: An increase in professional fees of $58,000, or 26.2%, was attributable to higher fees paid relating to legal and consulting services during the period. Net loss attributable to common shareholders for the three months ended June 30, 2026, was $1.2 million, compared to a net loss of $732,000 for the three months ended June 30, 2025.

Speaker #2: We ended the quarter with cash and marketable securities of approximately $9.3 million at June 30, 2026. We used $29.5 million of the proceeds from the sales of marketable securities to repurchase common stock from our shareholders in connection with the tender offer, which closed on January 15, 2026.

Christos H. Panagiotakos: We used $29.5 million of the proceeds from the sales of marketable securities to repurchase common stock from our shareholders in connection with the tender offer, which closed on 15 January 2026. Thank you. I will now turn the call back to Chuck.

Chris Panagiotakos: We used $29.5 million of the proceeds from the sales of marketable securities to repurchase common stock from our shareholders in connection with the tender offer, which closed on 15 January 2026. Thank you. I will now turn the call back to Chuck.

Speaker #2: Thank you. I will now turn the call back to Chuck.

Speaker #3: Thanks, Chris. Let's open up the call for some questions.

Charles M. Piluso: Thanks, Chris. Let's open up the call for some questions.

Chuck Piluso: Thanks, Chris. Let's open up the call for some questions.

Speaker #4: Thank you. And at this time, we'll conduct the Q&A session. To ask a question, press star one on your telephone keypad. A confirmation tone will indicate that your line is in the question queue.

Operator: Thank you, and at this time, we'll conduct the Q&A session. To ask a question, press star one on your telephone keypad. A confirmation tone will indicate that your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please, while we poll for questions. Your first question comes from Matthew Galinko with Maxim Group. Please state your question.

Speaker #4: You may press *2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions.

Speaker #4: Your first question comes from Matthew Galinko with Maxim Group. Please state your question.

Speaker #5: Hey, good morning. Thanks for taking my questions. Maybe we could start with what you're seeing in the M&A environment, and what you would say the biggest hurdle is today?

Matthew Galinko: Hey, good morning. Thanks for taking my questions. Maybe if we could start with what you are seeing in the M&A environment and what would you say the biggest hurdle is today in the businesses that you do not necessarily have line of sight to recurring or scalability and sustainability? Or are valuations sort of not in a place where you would find realistic returns? I am just curious what you are seeing and how that is changing over time.

Speaker #5: Businesses where you don't necessarily have line of sight to recurring revenue, scalability, or sustainability, or where valuations are not at a level where you find realistic returns?

Speaker #5: I'm just curious what you're seeing and how that's changing over time.

Speaker #3: Thanks, Matt, and good morning. Thank you for that question. I will tell you, since we signed the deal with Proforma—which is owned by Renovus, the private equity firm that we had sold to—and then we had the shareholder vote in September of 2025.

Charles M. Piluso: Thanks, Matt, and good morning. Thank you for that question. I will tell you since we signed the deal with Performive, which is owned by Renovus Private Equity, that we had sold, and then we had the shareholder vote in September of 2025. Since that July signing, we started working on looking at M&A transactions. We looked at, conservatively, people from different firms who were approaching us to do a reverse merge and say, "Reverse merge into the company." As you look at these companies to see how they would improve shareholder value, we find that there is a pre-revenue biotech. Everybody is going to have a billion-dollar value in a short period of time. It was kind of disappointing.

Chuck Piluso: Thanks, Matt, and good morning. Thank you for that question. I will tell you since we signed the deal with Performive, which is owned by Renovus Private Equity, that we had sold, and then we had the shareholder vote in September of 2025. Since that July signing, we started working on looking at M&A transactions. We looked at, conservatively, people from different firms who were approaching us to do a reverse merge and say, "Reverse merge into the company." As you look at these companies to see how they would improve shareholder value, we find that there is a pre-revenue biotech. Everybody is going to have a billion-dollar value in a short period of time. It was kind of disappointing.

Speaker #3: Since that July signing, we started working on looking at M&A transactions. And we looked at, conservatively, people from different firms were approaching us to do a reverse merge.

Speaker #3: And, say, reverse merge into the company. And then, as you look at these companies to see how it would improve shareholder value, we find that if there is a pre-revenue biotech, everybody's going to have a billion-dollar value in a short period of time.

Speaker #3: So it was kind of disappointing. So when we look at things like reverse merge, if we actually source something that was a real solid company—and I’d say we looked at over probably 15.

Charles M. Piluso: When we look at things like reverse merge, if we actually saw something that was a real solid company, I would say we looked at over probably 15 people calling us. It really was not a strategy of ours to do that. If something fantastic came up, you got to look at it. We just did not see that. On the other side, you look at some of the valuations and what happens, some of these companies, they go out. I will give you a very simple example that they are at $5 to $6 million in revenue. They have a $500 million valuation, and they raise some money from friends and family. There is a lot of unrealistic, no one is going to write a check out for $500 million for them. You are seeing a lot of unrealistic acquisitions. We have a few different paths.

Chuck Piluso: When we look at things like reverse merge, if we actually saw something that was a real solid company, I would say we looked at over probably 15 people calling us. It really was not a strategy of ours to do that. If something fantastic came up, you got to look at it. We just did not see that. On the other side, you look at some of the valuations and what happens, some of these companies, they go out. I will give you a very simple example that they are at $5 to $6 million in revenue.

Speaker #3: People calling us—it really wasn't a strategy of ours to do that. But if something fantastic came up, well, you’ve got to look at it.

Speaker #3: We just didn't see that. On the other side, you look at some of the valuations and what happens—some of these companies, they go out.

Speaker #3: I'll give you a very simple example: they're at $5 to $6 million in revenue, they have a $500 million valuation, and they raised some money from friends and family.

Chuck Piluso: They have a $500 million valuation, and they raise some money from friends and family. There is a lot of unrealistic, no one is going to write a check out for $500 million for them. You are seeing a lot of unrealistic acquisitions. We have a few different paths.

Speaker #3: So there's a lot of unrealistic—no one's going to write a check out for $500 million for them. And so you're seeing a lot of unrealistic acquisitions.

Speaker #3: We have a few different paths. What we're looking at is, for example, there could be distressed companies that have cyber software.

Charles M. Piluso: What we are looking at is there could be distressed companies, for example, that have cyber software, and they got caught up with either bad debt, out of covenant, but they own IP, they have patents filed. A cybersecurity software, just as an example. When we see that and we see the management team is pretty solid on things, but got in a little trouble, we like things like that, because we know that it has legs. We can pick up the software, let us say, we can now put some of our experience behind that, put some capital in, and then grow that, maybe building a SOC or just selling the software, whatever. Things like that interest us. We looked at some telecom. With the telecom stuff, although it is just a fantastic business, it is not on the climb.

Chuck Piluso: What we are looking at is there could be distressed companies, for example, that have cyber software, and they got caught up with either bad debt, out of covenant, but they own IP, they have patents filed. A cybersecurity software, just as an example. When we see that and we see the management team is pretty solid on things, but got in a little trouble, we like things like that, because we know that it has legs.

Speaker #3: And they got caught up with either bad debt or out of covenant, but they own IP. They have patents filed—so, a cybersecurity software company, just as an example.

Speaker #3: So we see that, and we see the management team is pretty solid on things, but they've gotten into a little trouble. We like things like that.

Speaker #3: Because we know that it has legs, we can pick up the software, let's say. We can now put some of our experience behind that, put some capital in, and then grow that—maybe building a SOC or just selling the software, whatever.

Chuck Piluso: We can pick up the software, let us say, we can now put some of our experience behind that, put some capital in, and then grow that, maybe building a SOC or just selling the software, whatever. Things like that interest us. We looked at some telecom. With the telecom stuff, although it is just a fantastic business, it is not on the climb.

Speaker #3: So things like that interest us. We looked at some telecom. With the telecom stuff, although it's just a fantastic business, it's not on the climb.

Speaker #3: If you take packet eight, and I just round numbers out, they have like seven, eight hundred million dollars in revenue. Their market cap is like two to three hundred million dollars.

Charles M. Piluso: If you take 8x8, I just round numbers out, they have, like, $700, $800 million in revenue. Their market cap is, like, $200 to $300 million. But it is solid recurring revenue, and a lot of folks today, Microsoft Teams ate a lot of their lunch. But when you look at that, Nexxis actually integrates with Teams. So there is integration that goes on with that, and you have a phone company that you can call. So we think that that is good and that is good for growth, and John and his group does a fantastic job at Nexxis. But we are looking more at a little of sovereign AI. We believe that we are not running to put up a Neocloud. Basically a year ago, I wanted to, quite frankly. So we are looking at these niche-y kind of plays that are not yet ready, but they will be ready.

Chuck Piluso: If you take 8x8, I just round numbers out, they have, like, $700, $800 million in revenue. Their market cap is, like, $200 to $300 million. But it is solid recurring revenue, and a lot of folks today, Microsoft Teams ate a lot of their lunch. But when you look at that, Nexxis actually integrates with Teams. So there is integration that goes on with that, and you have a phone company that you can call.

Speaker #3: But it's solid, recurring revenue. A lot of folks today—Microsoft Teams ate a lot of their lunch. But when you look at that, Nexus actually integrates with Teams.

Speaker #3: So there's integration that goes on with that. And you have a phone company that you can call, so we think that that's good. And that's good for growth.

Chuck Piluso: So we think that that is good and that is good for growth, and John and his group does a fantastic job at Nexxis. But we are looking more at a little of sovereign AI. We believe that we are not running to put up a Neocloud. Basically a year ago, I wanted to, quite frankly. So we are looking at these niche-y kind of plays that are not yet ready, but they will be ready.

Speaker #3: And John and his group do a fantastic job at Nexus. But we're looking more at a little of sovereign AI. We believe that we're not running to put up a Neo cloud.

Speaker #3: Basically, a year ago I wanted to, quite frankly. So, we're looking at these niche kind of plays that are not yet ready, but they will be ready.

Speaker #3: The business that we've been in for 25 years, we believe that we might be able to build something that is going to lead to compliance, let's say, as an example, with regulated industries that are not really allowed to use the cloud.

Charles M. Piluso: The business that we were in for 25 years, we believe that we might be able to build something that is going to lead to compliance, let us say, as an example, with regulated industries that they are not allowed really to use a cloud. It needs to be a private build. So we are looking seriously at companies that actually install sovereign AI and then have some of that talent to be able to take it to another level that I have some plans for, but we are not there on it. So I would say cyber, niche play, GPU infrastructure, companies that have assets or IP. But we have looked at many, many, many companies. I think on our tracker, it says, like, 124, and we are finding a few.

Chuck Piluso: The business that we were in for 25 years, we believe that we might be able to build something that is going to lead to compliance, let us say, as an example, with regulated industries that they are not allowed really to use a cloud. It needs to be a private build. So we are looking seriously at companies that actually install sovereign AI and then have some of that talent to be able to take it to another level that I have some plans for, but we are not there on it. So I would say cyber, niche play, GPU infrastructure, companies that have assets or IP. But we have looked at many, many, many companies. I think on our tracker, it says, like, 124, and we are finding a few.

Speaker #3: It needs to be a private build, so we're looking seriously at companies that actually install sovereign AI, and then have some of that talent to be able to take it to another level that I have some plans for.

Speaker #3: But we're not there on it. So I would say cyber, niche play GPU infrastructure, companies that have assets or IP. But we've looked at many, many, many companies.

Speaker #3: I mean, I think on our tracker, it says like 124, and we're finding a few. We have things that are lined up that we're looking at further due diligence on, but we're not ready to pull the trigger on any one.

Charles M. Piluso: We have stuff, we have things that are lined up that we are looking at further due diligence on it, but we are not ready to pull the trigger on anyone. But the biggest thing is the management team, and if they have a product that can be delivered, and there is a requirement for it. But it is just so many folks have outrageous valuations that go on. So I do not know if that helps with the question, but I think it gives you a feel that we have been really, really active with it, and we continue to every week. We have a number of different banks that we are working with that are sending deals in or approaching us.

Chuck Piluso: We have stuff, we have things that are lined up that we are looking at further due diligence on it, but we are not ready to pull the trigger on anyone. But the biggest thing is the management team, and if they have a product that can be delivered, and there is a requirement for it. But it is just so many folks have outrageous valuations that go on. So I do not know if that helps with the question, but I think it gives you a feel that we have been really, really active with it, and we continue to every week. We have a number of different banks that we are working with that are sending deals in or approaching us.

Speaker #3: But the biggest thing is the management team, and if they have a product that can be delivered and there's a requirement for it. But so many folks have outrageous valuations that go on.

Speaker #3: And so I don't know if that helps with the question, but I think it gives you a feel that we've been really, really active with it.

Speaker #3: And we continue to every week. And we have a number of different banks that we're working with that are sending deals in or approaching us.

Matthew Galinko: That is super helpful, and I appreciate the color. Maybe just as a follow-up to that process, for maybe the more attractive type opportunities that maybe have unrealistic valuations today, but need capital and might not be able to raise, might not have access or can not re-raise at the levels that they want. Do you expect any of those to potentially come back six months from now, a year from now with maybe a more reasonable ask, or is that part of the strategy as you kind of remain patient and sort of have different assets and different levels of engagement?

Speaker #5: That's super helpful, and I appreciate the caller. Maybe just as a follow-up to that process: for some of the more attractive opportunities that maybe have unrealistic valuations today but need capital—and might not be able to raise, might not have access, or can't re-raise at the levels that they want—

Speaker #5: Do you expect—or do you, yeah, do you expect any of those to potentially come back six months from now, a year from now, with maybe a more reasonable ask? Or is that part of the strategy as you kind of remain patient and have different assets and different levels of engagement?

Charles M. Piluso: There is one exact company that we looked at a while ago, over a year ago, could be close to 2 years. They came back, and we are having discussions and meeting with folks. We are just real careful. We have a group of technical advisors that we can actually, according to who it might be, it might be someone that actually specializes, for example, in software as it relates to cybersecurity. So we have the folks that can evaluate this. I am not a software person at all. But we do have the talent that can look at the GPU infrastructure, the niche plays. These are folks that were out of Amazon, Google, and it just goes on, Deloitte. So we have a very, very solid group that gets involved. Once we say, "Oh, this management team is good. We like them. Their forecasts are too big.

Chuck Piluso: There is one exact company that we looked at a while ago, over a year ago, could be close to 2 years. They came back, and we are having discussions and meeting with folks. We are just real careful. We have a group of technical advisors that we can actually, according to who it might be, it might be someone that actually specializes, for example, in software as it relates to cybersecurity.

Speaker #3: There's one exact company that we looked at a while ago—over a year ago, could be close to two years. And they came back and we're having discussions and meeting with folks.

Speaker #3: We're just real careful. We have a group of technical advisors that we can actually call upon, depending on who it might be. It might be someone that actually specializes, for example, in software as it relates to cybersecurity.

Speaker #3: So we have the folks that can evaluate this. I'm not a software person at all, but we do have the talent that can look at the GPU infrastructure, the niche place. These are folks that were out of Amazon, Google, and it just goes on—Deloitte.

Chuck Piluso: So we have the folks that can evaluate this. I am not a software person at all. But we do have the talent that can look at the GPU infrastructure, the niche plays. These are folks that were out of Amazon, Google, and it just goes on, Deloitte. So we have a very, very solid group that gets involved. Once we say, "Oh, this management team is good. We like them. Their forecasts are too big.

Speaker #3: It's just that we have a very, very solid group that gets involved once we say, "Oh, this management team is good. We like them."

Speaker #3: Their forecasts are too big. Let's make that more reasonable and see where it goes. Then, as we get into the product, we get the advisors involved.

Charles M. Piluso: Let's make that more reasonable, see where it goes." Then as we get into the product, we get the advisors involved, and they have been involved in a number of things that we are looking at. So it is from that point of view that they do come back. They do come back because it is difficult to raise money at that size company, and they all need access to capital. We have the Nasdaq company, we can use that and the $10 million, it gives us a lot of runway and some money to spend. But we are just real careful. We have to see something that based on, I will just use my experience, and we have some really good committees off the board that can actually help launch products on the go-to-market plans. But one company did come back, in answer to your question.

Chuck Piluso: Let's make that more reasonable, see where it goes." Then as we get into the product, we get the advisors involved, and they have been involved in a number of things that we are looking at. So it is from that point of view that they do come back. They do come back because it is difficult to raise money at that size company, and they all need access to capital. We have the Nasdaq company, we can use that and the $10 million, it gives us a lot of runway and some money to spend. But we are just real careful.

Speaker #3: And they've been involved in a number of things that we're looking at, so it's from that point of view that they do come back.

Speaker #3: They do come back because it's difficult to raise money at that size company, and they all need access to capital. We have the NASDAQ company.

Speaker #3: We can use that. And the $10 million, it gives us a lot of runway and some money to spend. But we're just real careful.

Speaker #3: We have to see something that—based on, I'll just use my experience—and we have some really good committees off the board that can actually help launch products on the go-to-market plans.

Chuck Piluso: We have to see something that based on, I will just use my experience, and we have some really good committees off the board that can actually help launch products on the go-to-market plans. But one company did come back, in answer to your question.

Speaker #3: So, but one company did come back and answer your question.

Speaker #5: Great. Thank you.

Matthew Galinko: Great. Thank you.

Speaker #1: Your next question comes from Robert Jordan with TSA Capital. Please state your question.

Operator: Your next question comes from Robert Jordan with TSA Capital. Please state your question.

Speaker #2: Thank you. Chuck, given where your stock is currently trading, how do you view your company's valuation? And does it factor into the M&A outlook?

Robert Jordan: Thank you. Chuck, given where your stock is currently trading, how do you view your company's valuation, and does it factor into your M&A outlook?

Speaker #3: Well, first of all, we're trading below our liquidation value right now. I mean, we have $10 million in the bank. You divide that out if you want to add any value to the public company.

Charles M. Piluso: Well, first of all, we're trading below our liquidation value right now. We have $10 million in the bank. You divide that out if you want to add any value to the public company. So I don't know, but we would use a portion of our cash in anything that we do, that we're buying a smaller company. It would be based on some sort of earn-out as it relates to cash and stock. We would issue some of the cash, but we rather buy the company, a company or a majority of the company, place it in a new subsidiary, and we put fresh capital into that to make them grow. And people have to prove that whatever we're buying has legs, that they can grow it, and then doing that benchmarking. And I think it's reasonable.

Chuck Piluso: Well, first of all, we're trading below our liquidation value right now. We have $10 million in the bank. You divide that out if you want to add any value to the public company. So I don't know, but we would use a portion of our cash in anything that we do, that we're buying a smaller company. It would be based on some sort of earn-out as it relates to cash and stock. We would issue some of the cash, but we rather buy the company, a company or a majority of the company, place it in a new subsidiary, and we put fresh capital into that to make them grow. And people have to prove that whatever we're buying has legs, that they can grow it, and then doing that benchmarking. And I think it's reasonable.

Speaker #3: So, I don't know. But we would use a portion of cash, and anything that we do—if we're buying a smaller company—it would be based on some sort of earn-out as it relates to cash and stock.

Speaker #3: We would issue some of the cash, but we'd rather buy the company—a company or a majority of the company—place it in a new subsidiary, and we put fresh capital into that to make them grow.

Speaker #3: And people have to prove that whatever we're buying has legs—that they can grow it. And then, doing that benchmarking. And I think it's reasonable if they believe in the company.

Charles M. Piluso: If they believe in the company, there's no reason why they wouldn't agree to it. When we see these numbers sometimes, we taper it down because it just, we talk to somebody, they were 15 million. They say within a short period, they'd be at 25. Another short period, they'd be at 40. And it's like, okay. It's just unrealistic. I've been around too many years to say I think that's really great that you can do that. I just necessarily don't want to participate in that play. I don't know if that answers the question to you, but we're trading below our liquidation value, and whatever we build in will be built in with earn-outs, even though there could be cash according to what their revenue and their profit is. Based on that, there'd be upfront money and some of it would need to be on earn-out.

Chuck Piluso: If they believe in the company, there's no reason why they wouldn't agree to it. When we see these numbers sometimes, we taper it down because it just, we talk to somebody, they were 15 million. They say within a short period, they'd be at 25. Another short period, they'd be at 40. And it's like, okay. It's just unrealistic. I've been around too many years to say I think that's really great that you can do that.

Speaker #3: There's no reason why they wouldn't agree to it. We just, when we see these numbers sometimes, we taper it down because we just—we talk to somebody.

Speaker #3: They were at 15 million. They say within a short period, they'll be at 25. Another short period, they'd be at 40. And it's like, okay.

Speaker #3: It's just unrealistic. I've been around too many years to say, "I think that's really great that you can do that." I just necessarily don't want to participate in that.

Chuck Piluso: I just necessarily don't want to participate in that play. I don't know if that answers the question to you, but we're trading below our liquidation value, and whatever we build in will be built in with earn-outs, even though there could be cash according to what their revenue and their profit is. Based on that, there'd be upfront money and some of it would need to be on earn-out.

Speaker #3: So, I don't know if that answers the question for you, but we're trading below our liquidation value. And whatever we build in, it'll be built in with earn-outs.

Speaker #3: Even though there could be cash, according to what their revenue and their profit is. Based on that, there would be upfront money, and some of it would need to be on earn-out.

Speaker #3: And we are limited by cash. I'd love to have $20 million in the bank, but we're going to be careful with it.

Charles M. Piluso: We are limited by cash. I'd love to have $20 million in the bank, but we're going to be careful with it.

Chuck Piluso: We are limited by cash. I'd love to have $20 million in the bank, but we're going to be careful with it.

Speaker #2: No, that answered it. That’s very helpful. Just one other question I have: how do you think about the timeline for your potential M&A activity?

Robert Jordan: No, that answered it. That's very helpful. Just one other question I have. How do you think about the timeline for your potential M&A activity? What should us investors expect over the coming quarters?

Speaker #2: What should US investors expect over the coming quarters?

Speaker #3: I would love to get, let's say, an LOI signed that's non-binding within, let's call it, 45 to 60 days. And I'd love to close something towards the end of the year, or definitely in the first quarter.

Charles M. Piluso: Gee, I would love to get, let's say, an LOI signed that's non-binding within, let's call it 60 days, 45 to 60. I'd love to close something towards the end of the year or definitely the first quarter. Our objective is to get a deal done, frankly, at the end of the fourth quarter. That's our objective. I'm impatient, and I've been very patient with it, but the deals just keep coming in, and we just want to pick the right one. I just explained how we structure some of the things, and every deal is a little bit different, but I'd love to get a deal done in the fourth quarter.

Chuck Piluso: Gee, I would love to get, let's say, an LOI signed that's non-binding within, let's call it 60 days, 45 to 60. I'd love to close something towards the end of the year or definitely the first quarter. Our objective is to get a deal done, frankly, at the end of the fourth quarter. That's our objective. I'm impatient, and I've been very patient with it, but the deals just keep coming in, and we just want to pick the right one. I just explained how we structure some of the things, and every deal is a little bit different, but I'd love to get a deal done in the fourth quarter.

Speaker #3: I mean, our objective is to get a deal done, frankly, at the end of the fourth quarter. That's our objective. I'm impatient, and I've been very patient with it, but the deals just keep coming in and we just want to pick the right one.

Speaker #3: But yeah, I just explained how we structure some of the things, and every deal is a little bit different. But I'd love to get a deal done in the fourth quarter.

Speaker #2: Thanks, Chuck. That answered my question. Good luck with the acquisition strategy.

Robert Jordan: Thanks, Chuck. That answered my question. Good luck with the acquisition strategy.

Speaker #3: Thank you very much. Thank you, Robert.

Charles M. Piluso: Thank you very much. Thank you, Robert.

Chuck Piluso: Thank you very much. Thank you, Robert.

Speaker #1: Thank you. There are no further questions at this time, so I'll hand the floor back over to Chuck Piluso for closing remarks.

Operator: Thank you. There are no further questions at this time. I'll hand the floor back over to Chuck Piluso for closing remarks.

Speaker #3: Okay. Thank you. Thank you all for the questions. I appreciate it. It gives us an opportunity to go a little deeper on some of the things that we feel we're headed in the direction of.

Charles M. Piluso: Okay. Thank you. Thank you all for the questions. Appreciate it. It gives us an opportunity to go a little deeper on some of the things that we feel we're in the direction of. As we look forward, I believe that the company is in a very strong position, and we have recurring revenue operating business in Nexxis. We got a solid capital position. When we say long-term debt, I believe that we don't have any debt, when you look at that. We'll say no long-term debt. We have a very streamlined corporate strategy that gives us flexibility to pursue these opportunities that we believe that we can enhance their value. Their value, and in turn, our value, the shareholder value. Our priority now is execution. We are actively evaluating M&A opportunities across several areas of technology. We are going to remain very disciplined.

Chuck Piluso: Okay. Thank you. Thank you all for the questions. Appreciate it. It gives us an opportunity to go a little deeper on some of the things that we feel we're in the direction of. As we look forward, I believe that the company is in a very strong position, and we have recurring revenue operating business in Nexxis. We got a solid capital position. When we say long-term debt, I believe that we don't have any debt, when you look at that.

Speaker #3: As we look forward, I believe that the company is in a very strong position, and we have a recurring revenue operating business in Nexus. We've got a solid capital position.

Speaker #3: And when we say long-term debt, I believe that we don't have any debt. When you look at that—but we'll say no long-term debt.

Chuck Piluso: We'll say no long-term debt. We have a very streamlined corporate strategy that gives us flexibility to pursue these opportunities that we believe that we can enhance their value. Their value, and in turn, our value, the shareholder value. Our priority now is execution. We are actively evaluating M&A opportunities across several areas of technology. We are going to remain very disciplined.

Speaker #3: We have a very streamlined corporate strategy that gives us flexibility to pursue these opportunities that we believe we can enhance their value—their value, and in turn, our value.

Speaker #3: The shareholder value. Our priority now is execution. We are actively evaluating M&A opportunities across several areas of technology, but we're going to remain very disciplined.

Speaker #3: We are not going to pursue transactions simply for the sake of getting bigger. We're looking for quality businesses with quality leadership, recurring revenue, and an established customer base—strong management teams that are willing to stay and grow the business.

Charles M. Piluso: We are not going to pursue transactions simply for the sake of getting bigger. We're looking for quality business with quality leadership, recurring revenue, an established customer base, strong management teams that are willing to stay and grow the business, and the potential to generate sustainable earnings and cash flow. We deploy capital, we want to do so in a way that we believe can create long-term value for our shareholders. At the same time, we intend to continue building on that momentum at Nexxis and strengthening the operating foundation of the company. Nexxis continues to provide us with a stable recurring revenue base, established customer relationships, and exposure to ongoing demand for enterprise connectivity solutions. We believe that foundation gives us a solid platform as we evaluate opportunities and broaden our scale, our revenue base, and improve our long-term earnings and profile of the company.

Chuck Piluso: We are not going to pursue transactions simply for the sake of getting bigger. We're looking for quality business with quality leadership, recurring revenue, an established customer base, strong management teams that are willing to stay and grow the business, and the potential to generate sustainable earnings and cash flow. We deploy capital, we want to do so in a way that we believe can create long-term value for our shareholders. At the same time, we intend to continue building on that momentum at Nexxis and strengthening the operating foundation of the company.

Speaker #3: And the potential to generate sustainable earnings and cash flow. We deploy capital, and we want to do so in a way that we believe can create long-term value for our shareholders.

Speaker #3: At the same time, we intend to continue building our net momentum at Nexus and strengthening the operating foundation of the company. Nexus continues to provide us with a stable, recurring revenue base, established customer relationships, and exposure to ongoing demand for enterprise connectivity solutions.

Chuck Piluso: Nexxis continues to provide us with a stable recurring revenue base, established customer relationships, and exposure to ongoing demand for enterprise connectivity solutions. We believe that foundation gives us a solid platform as we evaluate opportunities and broaden our scale, our revenue base, and improve our long-term earnings and profile of the company.

Speaker #3: We believe that foundation gives us a solid platform as we evaluate opportunities and broaden our scale, our revenue base, and improve our long-term earnings and profile of the company.

Speaker #3: Ultimately, the next phase for DTSP is about translating our financial flexibility, our operating platform, and experience into greater scale, stronger earnings power, and increased shareholder value.

Charles M. Piluso: Ultimately, the next phase for DTST is about translating our financial flexibility, our operating platform and experience into greater scale, stronger earnings power, and increased shareholder value. Today, for some reason, as I mentioned before, we trade below our cash and marketable securities. However, we recognize that results, not intentions, will determine our success, and our team is focused on delivering measurable progress. We appreciate the continued support from our shareholders, employees, our customers, partners, and we look forward to updating you as we execute on these objectives. Thank you for joining us today.

Chuck Piluso: Ultimately, the next phase for DTST is about translating our financial flexibility, our operating platform and experience into greater scale, stronger earnings power, and increased shareholder value. Today, for some reason, as I mentioned before, we trade below our cash and marketable securities. However, we recognize that results, not intentions, will determine our success, and our team is focused on delivering measurable progress. We appreciate the continued support from our shareholders, employees, our customers, partners, and we look forward to updating you as we execute on these objectives. Thank you for joining us today.

Speaker #3: Today, for some reason—as I mentioned before—we trade below our cash and marketable securities. However, we recognize that results, not intentions, will determine our success.

Speaker #3: And our team is focused on delivering measurable progress. We appreciate the continued support from our shareholders, employees, customers, and partners, and we look forward to updating you as we execute on these objectives.

Speaker #3: Thank you for joining us today.

Operator: Thank you. That concludes today's call. All parties may disconnect. Have a good day.