Q2 2027 Mind Technology Inc Earnings Call

September 9, 2026

Operator: Greetings, and welcome to the MIND Technology Q2 fiscal 2027 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. Anyone who should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Zach Vaughan, Investor Relations. Thank you. You may begin.

Speaker #1: Greetings, and welcome to the MIND TECHNOLOGY second quarter fiscal 2027 earnings conference call. At this time, all participants are on a listen-only mode. Question and answer session will follow the formal presentation.

Speaker #1: Anyone should require operator assistance during the conference. Please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Zach Vaughan, Investor Relations.

Speaker #1: Thank you. You may begin.

Speaker #2: Thank you, operator. Good morning, and welcome to the MIND TECHNOLOGY fiscal 2027 second quarter earnings conference call. We appreciate all of you joining us today.

Zach Vaughan: Thank you, operator. Good morning, and welcome to the MIND Technology Fiscal 2027 Q2 earnings conference call. We appreciate all of you joining us today. With me are Rob Capps, President and Chief Executive Officer, and Mark Cox, Vice President and Chief Financial Officer. Before I turn the call over to Rob, I have a few items to cover. If you would like to listen to a replay of today's call, it will be available for 90 days via webcast by going to the Investor Relations section of the company's website at mind-technology.com or via a recorded instant replay until 16 September. Information on how to access the replay was provided in yesterday's earnings release.

Speaker #2: With me are Rob Capps, President and Chief Executive Officer, and Mark Cox, Vice President and Chief Financial Officer. Before I turn the call over to Rob, I have a few items to cover.

Speaker #2: If you would like to listen to a replay of today's call, it will be available for 90 days via webcast by going to the Investor Relations section of the company's website at mind-technology.com.

Speaker #2: Or via a recorded instant replay until September 16th. Information on how to access the replay was provided in yesterday's earnings release. Information reported on this call speaks only as of today, Wednesday, September 9th, 2026, and therefore you are advised that time-sensitive information may no longer be accurate as of the time of any replay listening or transcript reading.

Zach Vaughan: Information reported on this call speaks only as of today, Wednesday, 9 September 2026, and therefore you are advised that time-sensitive information may no longer be accurate as of the time of any replay listening or transcript reading. Before we begin, let me remind you that certain statements made by management during this call may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and include known and unknown risks, uncertainties, and other factors, many of which the company is unable to predict or control, that may cause the company's actual future results or performance to materially differ from any future results or performance expressed or implied by those statements.

Speaker #2: Before we begin, let me remind you that certain statements made by management during this call may constitute forward-looking statements within the meaning of the private securities litigation reform act of 1995.

Speaker #2: These forward-looking statements are based on management's current expectations and include known and unknown risks, uncertainties, and other factors many of which the company is unable to predict or control that may cause the company's actual future results or performance to materially differ from any future results or performance expressed or implied by those statements.

Speaker #2: These risks and uncertainties include the risk factors disclosed by the company from time to time in its filings with the SEC, including in its annual report on Form 10-K, for the year ended January 31st, 2026.

Zach Vaughan: These risks and uncertainties include the risk factors disclosed by the company from time to time in its filings with the SEC, including in its annual report on Form 10-K for the year ended 31 January 2026. Furthermore, as we start this call, please also refer to the statement regarding forward-looking statements incorporated in our press release issued yesterday, and please note that the contents of our conference call this morning are covered by these statements. Now I'd like to turn the call over to Rob Capps.

Speaker #2: Furthermore, as we start this call, please also refer to the statement regarding forward-looking statements incorporated in our press release issued yesterday and please note that the contents of our conference call this morning are covered by these statements.

Speaker #2: Now, I'd like to turn the call over to Rob.

Speaker #3: Okay. Thanks, Zach. And thank you all for joining us today. As usual, I'll touch on the results for the second quarter. And provide an update on the current market environment.

Rob Capps: Okay. Thanks, Zach, and thank you all for joining us today. As usual, I will touch on the results for Q2 and provide an update on the current market environment. Mark Cox will then provide a more detailed review of our financials, and I will return to wrap things up with some remarks about our outlook. Our Q2 results reflect the ongoing market softness, offset to some extent by the resilience of our aftermarket business. Order flow continues to be constrained, and customers are maintaining their wait-and-see approach amid a very unsettled geopolitical and commodity price environment. Our results reflect this. Despite these headwinds, our aftermarket business continues to provide a recurring stream of revenue. This gives us a durable base through a period when new system orders are difficult to predict. This allows us to remain patient and opportunistic rather than reactive.

Speaker #3: Mark will then provide a more detailed review of our financials and I'll return to wrap things up with some remarks about our outlook. Our second quarter results reflect the ongoing market softness.

Speaker #3: Offset to some extent by the resilience of our aftermarket business. Order flow continues to be constrained. And customers are maintaining their wait-and-see approach amid a very unsettled geopolitical and commodity pricing environment.

Speaker #3: Our results reflect this. Despite these headwinds, our aftermarket business continues to provide revenue. This gives us a durable base through a period when new system orders are difficult to predict.

Speaker #3: This allows us to remain patient and opportunistic rather than reactive. Our last quarter highly laid out two dynamics in the broader energy landscape with the potential to drive increased activity in order flow.

Rob Capps: Last quarter, I laid out two dynamics in the broader energy landscape with the potential to drive increased activity and order flow. There is a growing need for energy security following a significant supply disruption, and a favorable oil pricing backdrop is expected to support a resurgence in exploration activity. We believe both dynamics remain intact, but they have yet to result in firm orders. The war with Iran has had a significant impact on our recent results. Certain ongoing projects in the Middle East have been temporarily interrupted. Additionally, and perhaps more importantly, the award and commencement of additional projects in the region have been delayed. These factors have caused customers to delay spending plans. They also, in some cases, have interrupted our customers' anticipated cash flow. This, in turn, caused certain customers to delay payments to us.

Speaker #3: There's a growing need for energy security following a significant supply disruption. And a favorable oil pricing backdrop is expected to support a resurgence in exploration activity.

Speaker #3: We believe both dynamics remain intact. But they have yet to result in firm orders. The war with Iran has had a significant impact on our recent results.

Speaker #3: Certain ongoing projects in the Middle East have been temporarily interrupted. Additionally, and perhaps more importantly, the award and commencement of additional projects in the region have been delayed.

Speaker #3: These factors have caused customers to delay spending plans. They also in some cases have interrupted our customers' anticipated cash flow. This in turn caused certain customers to delay payments to us.

Speaker #3: We are confident these amounts will be received just not within the time frames we originally anticipated. We continue to believe energy independence is top of mind for governments and operators alike.

Rob Capps: We are confident these amounts will be received, just not within the time frames we originally anticipated. We continue to believe energy independence is top of mind for governments and operators alike, and there is a real need to replenish lost production and secure reliable supply. We expect that to drive exploration and investment over time. However, at the present, the stops and starts of the war with Iran have created such volatility within the energy markets that customers are hesitant to commit to project timing. While oil prices remain elevated relative to historical standards, it is the durability of these prices, not the level, that drives investment decisions. Futures market does not expect today's prices to last. What matters more to our customers and to their customers is certainty. An end to the conflict would remove much of that uncertainty impacting projects today.

Speaker #3: And there's a real need to replenish lost production and secure reliable supply. We expect that to drive exploration investment over time. However, at the present, the stops and starts of the war with Iran have created such volatility within the energy markets that customers are hesitant to commit to project timing.

Speaker #3: While oil prices remain elevated relative to historical standards, it's the durability of these prices not the level that drives investment decisions. Futures market does not expect today's prices to last.

Speaker #3: What customers is certainty. And into the conflict would remove much of the uncertainty impacting projects today. We would then expect these programs to move forward.

Rob Capps: We would then expect these programs to move forward. We see a resolution to the war as good for our business. Our backlog of firm orders as of 31 July 2026 was approximately $4.8 million, compared to $7.6 million as of 30 April 2026, and $12.8 million as of 31 July 2025. Procrastinated customer decision-making regarding new system orders and the execution of our existing backlog during the quarter were the drivers of the decline. As our backlog continues to illustrate, there is considerable variability in the pace and timing of new orders. This has been magnified by the ongoing macro uncertainty. I will remind you that even in a normal market, new orders do not always arrive at a constant rate throughout the year. Importantly, we continue to view these as temporary pauses as customers iron out their operational plans and evaluate market conditions.

Speaker #3: We see in resolution to the war as good for our business. Now, our backlog of firm orders as of July 31st, 2026 was approximately 4.8 million dollars compared to 7.6 million dollars as of April 30, 2026, and 12.8 million as of July 31st, 2025.

Speaker #3: Protractor customer decision-making regarding new system orders and the execution of our existing backlog during the quarter were the drivers of the decline. As our backlog continues to illustrate, the risk considerable variability in the pace and timing of new orders.

Speaker #3: This has been magnified by the ongoing macro uncertainty. I'll remind you that even in a normal market, new orders don't always arrive at a constant rate throughout the year.

Speaker #3: Importantly, we continue to view these as temporary pauses as customers iron out their operational plans and evaluate market conditions. Despite the near-term softness, the longer-term outlook for the marine exploration and the survey industry and more specifically our business remains very positive in our opinion.

Rob Capps: Despite the near-term softness, the longer-term outlook for the marine exploration and the survey industry, and more specifically our business, remains very positive in our opinion. We have begun to see early signs of recovery and feel that an uptick in activity is inevitable. I will talk a bit more about this later. Outside of our backlog, which is defined as orders for which we have a purchase order or a signed contract in hand, the pipeline of potential orders remains solid and is several times greater than our firm backlog. We are continuing to pursue certain significant projects, including some worth $10 million or more each. We have taken actions in recent months to strengthen our positioning and make ourselves more competitive bidders. This provides us with optimism as we work to convert these opportunities into firm orders in coming periods.

Speaker #3: We've begun to see early signs of recovery and feel that an uptick in activity is inevitable. I'll talk a bit more about this later.

Speaker #3: Outside of our backlog, which is defined as orders for which we have purchased order or assigned contract in hand, the pipeline of potential orders remains solid and is several times greater than our firm backlog.

Speaker #3: We are continuing to pursue certain significant projects including some worth $10 million or more each. We have taken actions in recent months to strengthen our positioning and make ourselves more competitive bidders.

Speaker #3: This provides us with optimism as we work to convert these opportunities into firm orders in coming periods. Turning to our results, marine technology product revenues for the second quarter of fiscal 2027 were approximately 5.6 million dollars.

Rob Capps: Turning to our results, Marine Technology product revenues for Q2 of fiscal 2027 were approximately $5.6 million. The majority of this revenue, roughly 87%, came from aftermarket activity consisting of spare parts, repairs, service, and other support activities. We have talked at length in recent quarters about this component of our business and its critical role within our overall results. This has become increasingly important as system orders have slowed. While the aftermarket business is influenced by the general activity level within the industry, it is more recurring in nature than orders for new systems. Customers might be slow to purchase new systems, but their existing equipment will need maintenance to keep operating. This benefits MIND since expenditures for aftermarket activity are generally operating costs as opposed to capital expenditures. As our installed base of C-MAP products expands, so does the potential for increased aftermarket activity.

Speaker #3: The majority of this revenue roughly 87% came from aftermarket activity consisting of spare parts, repairs, service, and other support activities. We've talked at length in recent quarters about this component of our business and it's critical role within our overall results.

Speaker #3: This is becoming increasingly important as system orders have slowed. But while the aftermarket business is influenced by the general activity level within the industry, it is more recurring in nature than orders for new systems.

Speaker #3: Customers might be slow to purchase new systems, but their existing equipment will need maintenance to keep operating. This benefits MIND, since expenditures for aftermarket activity are generally operating costs as opposed to capital expenditures.

Speaker #3: As our install base of CMAP products expands, so does the potential for increased aftermarket activity. The second quarter was a difficult one, and our results reflect that.

Rob Capps: Q2 was a difficult one, and our results reflect that. Our aftermarket activity held up and continued to generate meaningful revenue at a time when system orders were effectively on hold. It allows us to manage through a period of disruption and position the company for when activity improves. I remain confident in the opportunities ahead of us, and I believe it is just a matter of time until order flow returns. Now, I will let Mark walk you through our Q2 financial results in a bit more detail.

Speaker #3: Our aftermarket activity held up and continued to generate meaningful revenue at a time when system orders were effectively on hold. It allows us to manage through a period of disruption and position the company for when activity improves.

Speaker #3: I remain confident in the opportunities ahead of us, and I believe it is just a matter of time until order flow returns. Now, I'll let Mark walk you through our second quarter financial results in a bit more detail.

Speaker #2: Thanks, Rob, and good morning, everyone. Revenues for marine technology product sales totaled approximately 5.6 million for the quarter. As Rob mentioned, our second quarter results continued to be impacted by general market softness and our customers taking a more cautious approach to the decision-making process.

Mark Cox: Thanks, Rob, and good morning, everyone. Revenues for Marine Technology product sales totaled approximately $5.6 million for the quarter. As Rob mentioned, our Q2 results continued to be impacted by general market softness and our customers taking a more cautious approach to the decision-making process. Despite these headwinds, we are benefiting from aftermarket activity that provides a solid foundation of recurring revenue. This activity supports our overall results and serves as a buffer in times of reduced large system order volume. Q2 gross profit was approximately $2.1 million. This represents a gross profit margin of 37% for the quarter. Although a significant portion of our Q2 revenue came from aftermarket activity, which typically generates higher margins and larger system orders, lower overall revenue in the quarter resulted in less fixed cost absorption impacting our gross margin.

Speaker #2: Despite these headwinds, we are benefiting from aftermarket activity that provides a solid foundation of recurring revenue. This activity supports our overall results and serves as a buffer in times of reduced large system order volume.

Speaker #2: Second quarter gross profit was approximately $2.1 million. This represents a gross profit margin of 37% for the quarter. Although a significant portion of our second quarter revenue came from aftermarket activity, which typically generates higher margins than larger system orders, lower overall revenue in the quarter resulted in less fixed cost absorption, impacting our gross margin.

Speaker #2: As revenue returns to more normalized levels, we expect our cost optimization efforts and improved production efficiencies to support stronger margins. Our general and administrative expenses were approximately 3.3 million for the second quarter of fiscal 2027.

Mark Cox: As revenue returns to more normalized levels, we expect our cost optimization efforts and improved production efficiencies to support stronger margins. Our general and administrative expenses were approximately USD 3.3 million for Q2 of fiscal 2027. This was down both sequentially and when compared to the same quarter a year ago. Our research and development expense for Q2 was approximately USD 470,000, which was up sequentially and compared to Q2 of fiscal 2026. This increase was due to the timing of cost recognition for component purchases. Consistent with prior periods, these costs were largely directed toward the development enhancement of our streamer systems and source controller offerings. Operating loss for Q2 of fiscal 2027 was approximately USD 1.8 million, compared to operating income of approximately USD 2.7 million in Q2 of fiscal 2026.

Speaker #2: This was down both sequentially and when compared to the same quarter a year ago. Our research and development expense for the second quarter was approximately $407,000, which was up sequentially and compared to the second quarter of fiscal 2026.

Speaker #2: This increase was due to the timing of cost recognition for component purchases. Consistent with prior periods, these costs were largely directed toward the development enhancement of our streamer systems and source controller offerings.

Speaker #2: Operating loss for the second quarter of fiscal 2027 was approximately $1.8 million, compared to operating income of approximately $2.7 million in the second quarter of fiscal 2026.

Speaker #2: Second quarter adjusted EBITDA loss was approximately $949,000 compared to adjusted EBITDA of $3.1 million in the same quarter a year ago. Net loss for the second quarter was approximately $1.7 million compared to net income of $1.9 million in the second quarter of fiscal 2026.

Mark Cox: Q2 adjusted EBITDA loss was approximately USD 949,000 compared to adjusted EBITDA of USD 3.1 million in the same quarter a year ago. Net loss for Q2 was approximately USD 1.7 million, compared to net income of USD 1.9 million in Q2 of fiscal 2026. As of 31 July 2026, we had working capital of approximately USD 36.7 million, including USD 15.8 million of cash on hand. This compares to approximately USD 19 million of cash at the beginning of the fiscal year. I would caution against reading that change as a reflection of our cash burn rate. Movement in cash reflects the timing of receivable collections as much as it does operating performance. As Rob Capps mentioned a moment ago, collections in H1 of fiscal 2027 were slower than we anticipated due to circumstances impacting certain of our customers' markets.

Speaker #2: As of July 31st, 2026, we had working capital of approximately $36.7 million including $15.8 million of cash on hand. This compares to approximately $19 million of cash at the beginning of the fiscal year.

Speaker #2: Our caution against reading that change as a reflection of our cash burn rate. Movement in cash reflects the timing of receivable collections as much as it does operating performance.

Speaker #2: As Rob mentioned a moment ago, collections in the first half of fiscal 2027 were slower than we anticipated due to circumstances impacting certain of our customers' markets.

Speaker #2: For a more accurate measure of our operating performance, we would point to our adjusted EBITDA. The company continues to maintain a clean debt-free balance sheet with a simplified capital structure.

Mark Cox: For a more accurate measure of our operating performance, we would point to our adjusted EBITDA. The company continues to maintain a clean, debt-free balance sheet with a simplified capital structure. We also maintain operational flexibility to pursue strategic opportunities should they arise. I will now pass it back over to Rob Capps for some concluding comments.

Speaker #2: We also maintain operational flexibility to pursue strategic opportunities should they arise. I'll now pass it back over to Rob for some concluding comments.

Speaker #3: Okay, thanks, Mark. We are operating in a challenging macro environment and our customers' wait-and-see approach reflects that. Customers continue to delay order commitments regardless of industry or end use, which limits our visibility and will likely pressure results for another quarter or two.

Rob Capps: Okay. Thanks, Mark Cox. We are operating in a challenging macro environment, and our customers' wait-and-see approach reflects that. Customers continue to delay order commitments regardless of industry or end use, which limits our visibility and will likely pressure results for another quarter or two. Much of that timing depends on conditions in the Middle East, which remain unsettled. We are not going to predict when that will change. However, I want to emphasize that we believe demand has not gone away. Although the timing remains uncertain, customers are actively evaluating several sizable projects, which we view as an encouraging sign for future activity. As conditions stabilize, we expect customers will reactivate their capital programs, and we are positioning the business to respond quickly when they do. Customer interest and engagement remains solid, but they are not converting into firm orders at the rate we expected at this point in the year.

Speaker #3: Much of that timing depends on conditions in the Middle East, which remain unsettled. We are not going to predict when that will change. However, I want to emphasize that we believe demand has not gone away.

Speaker #3: Although the timing remains uncertain, customers are actively evaluating several sizable projects which we view as an encouraging sign for future activity. As conditions stabilize, we expect customers will reactivate their capital programs and we're positioning the business to respond quickly when they do.

Speaker #3: Customer interest and engagement remain solid. But they're not converting into firm orders at the rate we expected at this point in the year. As a result, our expectations are that our fiscal 2027 results will be below fiscal 2026.

Rob Capps: As a result, our expectations are that our fiscal 2027 results will be below fiscal 2026. Despite this view, two things give us confidence in our ability to manage through this period. Our aftermarket business provides a steady stream of recurring revenue that supports our results, and we have meaningful working capital, including cash on hand. This gives us the flexibility to invest in the business and act on opportunities as they arise. Our conviction regarding the longer-term prospects has not changed. The underlying dynamics within the marine technology industry remain intact, and we are seeing opportunities to capitalize on new areas of focus within the market. Rather than pull back during this slowdown, we have continued to invest in our technology that is beginning to open doors. As an example, we've started gaining traction with our passive array technology in maritime security applications.

Speaker #3: Despite this view, two things give us confidence in our ability to manage through this period. Our aftermarket business provides a steady stream of recurring revenue that supports our results, and we have meaningful working capital, including cash on hand.

Speaker #3: This gives us the flexibility to invest in the business and act on opportunities as they arise. Our conviction regarding longer-term prospects has not changed.

Speaker #3: The underlying dynamics within the marine technology industry remain intact, and we are seeing opportunities to capitalize on new areas of focus within the market.

Speaker #3: Rather than pull back during this slowdown, we have continued to invest in our technology, and that is beginning to open doors. As an example, we've started gaining traction with our passive array technology in maritime security applications.

Speaker #3: Still early days, but we believe this technology provides a cost-effective solution to a real operational need. We're encouraged by the interest we've received and look forward to providing updates as things develop.

Rob Capps: Still early days, but we believe this technology provides a cost-effective solution to a real operational need. We're encouraged by the interest we've received and look forward to providing updates as things develop. We are also pursuing upgrades and improvements to our source controller and towed streamer products, which we believe will generate new opportunities. In recent quarters, I've discussed our capital allocation strategy. We have a simple capital structure and a debt-free balance sheet, and we ended the quarter with $15.8 million in cash. This liquidity gives us flexibility that not all small public companies possess. We are constantly evaluating opportunities to create meaningful long-term value for our stockholders. Our first priority is always to preserve the strength of the company. This includes funding operations through a period of reduced order flow and lower revenue while continuing to invest in technology that positions us for the recovery we expect.

Speaker #3: We are also pursuing upgrades and improvements to our source controller and towed streamer products, which we believe will generate new opportunities. In recent quarters, I've discussed our capital allocation strategy.

Speaker #3: We have a simple capital structure and a debt-free balance sheet. And we ended the quarter with $15.8 million in cash. This liquidity gives us flexibility that not all small public companies possess.

Speaker #3: We are constantly evaluating opportunities to create meaningful long-term value for our stockholders. Our first priority is always to preserve the strength of the company.

Speaker #3: This includes funding operations through a period of reduced order flow and lower revenue, while continuing to invest in the technology that positions us for the recovery we expect.

Speaker #3: Beyond that, we see a real need to add scale. And we are actively pursuing opportunities to do so. As we've said previously, there are several paths available to us.

Rob Capps: Beyond that, we see a real need to add scale, and we are actively pursuing opportunities to do so. As we've said previously, there are several paths available to us. We can execute organic growth initiatives that we've identified. We can acquire assets or businesses adjacent to what we already do. We can combine with another organization. What we will not do is jeopardize the progress that we've made at MIND by chasing something that does not fit what we do. That being said, we continue to actively seek out transformative transactions. We also recognize that another attractive use of capital is stock repurchases, especially at current price levels. We believe that recent prices for our stock do not accurately reflect the true value of the company.

Speaker #3: We can execute organic growth initiatives that we have identified. We can acquire assets or businesses adjacent to what we already do. We can combine with another organization.

Speaker #3: What we will not do is jeopardize the progress that we've made at mind by chasing something that does not fit what we do. That being said, we continue to actively seek out transformative transactions.

Speaker #3: And we also recognize that another attractive use of capital is stock repurchases, especially at current price levels. We believe that recent prices for our stock do not accurately reflect the true value of the company.

Speaker #3: I'd point out that as of the end of the most recent quarter, we had working capital of approximately $36.7 million. Which equates to more than $4 per common share.

Rob Capps: I'd point out that as of the end of the most recent quarter, we had working capital of approximately $36.7 million, which equates to more than $4 per common share. Now despite these apparently attractive economics, we did not purchase any of our common stock during the Q2. I understand how many of you are frustrated by this lack of activity. We do believe our stock at current levels represents a good investment. However, there are often limitations on when we can be active in the market. We are precluded from buying, or selling for that matter, our stock during blackout periods pending the release of periodic financial results. Additionally, we cannot buy or sell our stock when in possession of material information that has not yet been disseminated to the market. These situations could include ongoing preliminary discussions regarding new business or strategic transactions.

Speaker #3: Now, despite these apparently attractive economics, we did not purchase any of our common stock during the second quarter. I understand how many of you are frustrated by this lack of activity.

Speaker #3: We do believe our stock at current levels represents a good investment. However, there are often limitations on when we can be active in the market.

Speaker #3: We are precluded from buying or selling for that matter, but our stock during a blackout periods tending to release a periodic financial results. Additionally, we cannot buy or sell our stock when in possession of material information that has not yet been disseminated to the market.

Speaker #3: These situations could include ongoing preliminary discussions regarding new business or more strategic transactions. We will continue to assess the appropriate time to enter the market against our other capital priorities.

Rob Capps: We will continue to assess the appropriate time to enter the market against our other capital priorities. Going forward, preserving and enhancing value remains our primary focus, and we will allocate capital to the areas where we see the greatest return. In closing, the market remains soft. While I am confident about where this business is headed, the projects our customers have deferred have not gone away, and the underlying demand fundamentals are only growing. When activity returns, we intend to be ready for it. We have no debt, real liquidity, and an aftermarket business generating recurring revenue, and technology that is expanding our addressable markets. We are using this period to improve our positioning and sharpen our competitive edge. We are focused on innovating, adding scale, and partnering with customers that appreciate the value we deliver.

Speaker #3: Going forward, preserving and enhancing value remains our primary focus, and we will allocate capital to the areas where we see the greatest return. In closing, the market remains soft, but I am confident about where this business is headed.

Speaker #3: The projects our customers have deferred have not gone away, and the underlying demand fundamentals are only growing. When activity returns, we intend to be ready for it.

Speaker #3: We have no debt, real liquidity, and an aftermarket business generating recurring revenue. Our technology is expanding our addressable markets. We are using this period to improve our positioning and sharpen our competitive edge.

Speaker #3: We are focused on innovating and adding scale and partnering with customers that appreciate the value we deliver. I look forward to executing on these priorities, which we believe will drive improved stockholder value.

Rob Capps: I look forward to executing on these priorities, which we believe will drive improved stockholder value. With that, operator, I think we can now open the call up for some questions.

Speaker #3: And with that, operator, I think we can now open the call up for some questions.

Speaker #2: Thank you. We will now be conducting a question and answer session. Yes, that you please limit yourself to one question and one follow-up. I'd like to ask a question.

Operator: Thank you. We will now be conducting a question and answer session. We ask that you please limit yourself to one question and one follow-up. If you would 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 you would like to remove your question from the queue. If you are using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Thank you. Our first question comes from the line of Tyson Bauer with KC Capital. Please proceed with your question.

Speaker #2: 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 you would like to remove your question from the queue.

Speaker #2: Using speaker equipment, it may be necessary to pick up your hands up before pressing the star keys. Thank you. Our first question comes from a line of Tyson Bauer with KC Capital.

Speaker #2: Please proceed with your question.

Tyson Bauer: Good morning, gentlemen.

Speaker #1: Good morning, gentlemen.

Speaker #4: Hello, Tyson.

Rob Capps: Hello, Tyson.

Speaker #1: I'm just going to follow up quickly on your last comment, and that is: given the Middle East conflict, with the situation on and off and no resolution seemingly coming quickly, how does that sway your capital use decisions for MIND?

Tyson Bauer: I'm just going to follow up quickly on your last comment, and that is: given the Middle East conflict, on and off situation, and no resolution seemingly coming quick, how does that sway your capital use decisions for MIND? Does that accelerate some of these things you've talked about as far as improving shareholder value and growing the business? Or do you hang on to that cash a little tighter and you see how things kind of play out? The follow-up to that, as you talked about these blackout periods and a lot of things, irons in the fire you have going, would you anticipate that most, if not all, of Q3 may be in those blackout periods?

Speaker #1: Does that accelerate some of these things you've talked about as far as improving shareholder value and growing the business? Or do you hang on to that cash a little tighter and you see how things kind of play out?

Speaker #1: And the follow-up to that is, you talked about these blackout periods and a lot of things irons in the fire you have going. Would of Q3 maybe in those blackout periods?

Speaker #4: Let me address the last one first. Not necessarily. Again, I don't want to telegraph when we may or may not be in the market.

Rob Capps: Let me address the last one first. Not necessarily. Again, I don't want to telegraph when we may or may not be in the market, but I wouldn't say that's necessarily the case. I think that the situation in the Middle East is something we have to contemplate when we look at capital allocation. Certainly, if we see a lesser opportunity in the very near term for new business, that might steer us a different direction as far as where we might allocate capital. Maybe be more inclined to buy back stock at that point, or something more strategic. I just don't want to telegraph what we're going to do. It's something we do have to contemplate. But for sure, the Middle East situation has gone on much longer than I think any of us anticipated, and certainly has had a bigger impact than we originally anticipated.

Speaker #4: But I wouldn't say that's necessarily the case. I think that the situation in the Middle East, something as we have to contemplate when we look at capital allocation, certainly if we see a lesser opportunity in the very near term for new business, that might steer us a different direction as far as where we might allocate capital.

Speaker #4: Maybe if we're inclined to buy back stock at that point, or something more strategic. But again, I just don't want to telegraph what we're going to do, but it's something we do have to contemplate.

Speaker #4: But for sure, the Middle East situation has gone on much longer than I think any of us anticipated. And certainly, it has a bigger impact than we originally anticipated.

Speaker #1: Now, you do obviously have business that should not be impacted by the Middle East, such as scientific activity in Asia, South Asian Sea, your Scandinavian customers that have been big in the past.

Tyson Bauer: Now, you do obviously have business that should not be impacted by the Middle East, such as scientific activity in Asia, South China Sea, your Scandinavian customers that have been big in the past, critical mineral exploration off the coast of Africa, and some of those areas. So when we look at this pipeline being frozen, is it more at the government level for these types of projects, or is it in addition to the corporate budgeting level? Is it kind of a combination at this point?

Speaker #1: Critical mineral exploration off the coast of Africa, and some of those areas. So when we look at this pipeline being frozen, is it more at the government level for these types of projects, or is it in addition to the corporate budgeting level?

Speaker #1: Is it kind of a combination at this point?

Speaker #4: Yeah. So that's a really good question, There are projects in the Middle East that have been impacted. But also, I think the general economic macro situation has caused people to be cautious elsewhere in the world.

Rob Capps: Yeah. That's a really good question, Tyson. There are projects in the Middle East that have been impacted. Also, I think the general economic macro situation has caused people to be cautious elsewhere in the world. Our customers, whether they're located in the Middle East, in Dubai or in Norway or the US, operate on a worldwide basis. Just because they aren't in the Middle East doesn't mean they're not impacted by the macroeconomic situation that happens overall. So I think that's really the bigger driver factor for the slowdown in activity. You are definitely correct. We do see activity and are actively chasing projects that are non-energy related. Especially in Southeast Asia, there's a lot going on there, and other parts of the world. So we aren't totally energy dependent, and we are seeing activity there.

Speaker #4: Our customers, maybe whether they're located in the Middle East, in Dubai, or in Norway, or the US, operate on a worldwide basis. So just because they aren't in the Middle East doesn't mean they're not impacted by the macroeconomic situation that happens overall.

Speaker #4: So I think that's really the bigger driver factor for the slowdown in activity. You are definitely correct. We do see activity in our actively chasing projects.

Speaker #4: That are non-energy related. Especially in Southeast Asia, there's a lot going on there. In other parts of the world. So we aren't totally energy dependent.

Speaker #4: And we are seeing activity there. But again, part of that problem is just the budget cycles and the those are driven by governmental issues and government budget cycles, not in the US necessarily, but elsewhere in the world.

Rob Capps: But again, part of that problem is just the budget cycles and those are driven by governmental issues and government budget cycles, not in the US necessarily, but elsewhere in the world. They just move very slowly sometimes. But those are some of the larger projects that I alluded to earlier.

Speaker #4: And they just move very slowly sometimes. But those are some of the larger projects that I alluded to earlier.

Speaker #1: And if we use this analogy of a frozen pipeline, obviously, you've got two solutions. One, a slow thaw that creates a trickle of orders that come on the backside of this.

Tyson Bauer: If we use this analogy of a frozen pipeline, obviously, you got two solutions. One, a slow thaw that creates a trickle of orders that come on the backside of this. Or if it thaws quickly, you end up with possibly a pipe bursting, which I think we would not treat that as unwelcomed, even though you may have a working capital requirement there. How do you see that playing out? Is it more likely a trickle or more likely the pig in the python or the upbird-

Speaker #1: Or if it thaws quickly, you end up with possibly a pipe bursting, which I think we would not treat as unwelcome, even though you may have a working capital requirement there.

Speaker #1: How do you see that playing out? Is it more likely a trickle or more likely a the pig in the python or a bird in the orders?

Speaker #4: Yeah. That's a tough one to answer. I personally think it's more of a closer to a trickle. Maybe not trickles, maybe not the right word I would use, but I don't see things just bursting loose.

Rob Capps: Yeah

Tyson Bauer: orders?

Rob Capps: Yeah. That's a tough one to answer. I personally think it's more of a closer to a trickle. Trickle is maybe not the right word I would use, but I don't see things just bursting loose. I think because of the uncertainty that this has created, companies tend to be much more cautious now than they might've been in the past, just because of this uncertainty. So that's my read on it, but take it what it's worth.

Tyson Bauer: orders?

Speaker #4: I think because of the uncertainty that this is created, and companies tend to be much more cautious now than they might have been in the past.

Speaker #4: Just because of this uncertainty. So that's my read on it. But take it what it's worth.

Speaker #1: The last couple of quarters, you've thrown out the carrot out there—these $10 million project possibilities. What, if anything, can you add color to? What are they contingent upon?

Tyson Bauer: Last couple of quarters, you have thrown out the carrot out there, these $10 million project possibilities. What, if anything, you can add color to, what are they contingent upon that we can

Speaker #1: That we can watch in the marketplace that makes it more likely or less likely they could occur?

Tyson Bauer: watch in the marketplace that makes it more likely or less likely they could occur?

Speaker #4: I think the particular instances I have in mind are more related to budget cycles and the process working its way through, rather than anything from the macro environment.

Rob Capps: I think the particular instances I have in mind are more related to budget cycles and the process working its way through rather than anything from the macro environment. I do not think the Middle East situation necessarily has a big impact on those particular projects. But again

Speaker #4: So I don't think the Middle East situation necessarily has a big impact on those particular projects.

Speaker #1: So government budgets, government agencies, those things.

Tyson Bauer: Government budgets, government agencies, those things.

Speaker #4: And they move at the pace they move.

Rob Capps: They move at the pace they move.

Speaker #1: Right. A couple of just quick financials. It appears that Q3, Q4—more likely than less likely—will resemble Q2, or be within that ballpark of that $5 to $8 million that you've experienced in the past on repair sales and what you've talked about: that recurring revenue base.

Tyson Bauer: Right. A couple just quick financials. It appears that Q3, Q4, more likely than less likely to resemble Q2 or within that ballpark of that 5 to 8 million that you've experienced in the past on repair sales and kind of what you've talked about, that reoccurring revenue base. So even if we have orders materialize, it's likely that this fiscal year is kind of more or less set in what we should expect, and all the focus then becomes, can you grow backlog before the end of the year, and what does that imply for fiscal 2028? Is that correct?

Speaker #1: So even if we have orders materialized, it's likely that this fiscal year is kind of more or less set. In what we should expect and all the focus then becomes can you grow backlog before the end of the year?

Speaker #1: And what does that imply for fiscal 28? Is that correct?

Rob Capps: Well, there's definitely truth to what you're saying there. I would, I guess, modify that in that certainly there are orders that are, or prospects that were in the pipeline that we could turn around and deliver in this year. Now, obviously, as time goes by, the closer you get to the year, that likelihood reduces. So I wouldn't write off the back end of the year completely at this point, but I think that's from a standpoint of large system orders.

Speaker #4: Yeah, there's definitely truth to what you're saying there. I would, I guess, modify that in that certainly there are orders—that is, prospects that were in the pipeline—that we could turn around and deliver in this year.

Speaker #4: Now, obviously, as time goes by, the closer you get to the year, that likelihood reduces. So I wouldn't write off the back end of the year completely at this point, but I think from a standpoint of large system orders.

Speaker #1: Okay. And last one. Last one from me, obviously, cash flow, 15 million. You said that it was an abnormal cash use quarter. I don't expect that to continue.

Tyson Bauer: Okay, and last one.

Rob Capps: I-

Tyson Bauer: Last one from me. Obviously, cash flow of $15 million, you said that it was an abnormal cash use quarter. Do not expect that to continue. What kind of cash management and projection are you looking at for the next quarter or two?

Speaker #1: What kind of cash management and projection are you looking at for the next quarter or two?

Speaker #4: Well, again, I think the issue with the cash situation that Mark alluded to, or addressed, was we've had a we actually had three customers which had their cash flow impacted by the Middle East situation directly.

Rob Capps: Well, again, I think the issue with the cash situation that Mark alluded to or addressed was we actually had three customers, which had their cash flow impacted by the Middle East situation directly. Excuse me. Two of those have been resolved. They have been collected as of now. There is a third that is still an issue, which is a substantial amount. Again, we are very confident about the collection, given who it is. But we are just working through the logistics of getting that resolved. If that is resolved by the end of the year, as we expect it would be, then I think you will see a significant increase in cash balance at that point.

Speaker #4: Excuse me. Two of those have been resolved. They've been collected as of now. There's a third that is still an issue. Which is a substantial amount.

Speaker #4: Again, we're very confident about the collection, given who it is. But we're just working through the logistics of getting that resolved. So if that's resolved by the end of the year, as we expect it would be, then I think you'll see a significant increase in cash balance at that point.

Speaker #1: But today's cash balance is greater than the $1,570 you recorded at the end of July.

Tyson Bauer: But today's cash balance is greater than the $15.7 million you recorded at the end of July?

Speaker #4: Yeah, rough, roughly. I mean, not dramatically, but roughly.

Rob Capps: Yeah, roughly. I mean, not dramatically, but roughly.

Speaker #1: Okay. Thank you.

Tyson Bauer: Okay. Thank you.

Speaker #2: Our next question comes from a line of Ross Taylor with ARS Investment Partners. Please proceed with your question.

Operator: Our next question comes from the line of Ross Taylor with ARS Investment Partners. Please proceed with your question.

Speaker #3: Thank you. Well, Tyson covered a lot of ground that I'd wanted to address. But I think getting down to it, what steps sounds like you expect to be in this situation for a quarter or two longer?

P. Ross Taylor III: Well, Tyson covered a lot of ground that I wanted to address, but I think getting down to it, since it sounds like you expect to be in this situation for a quarter or two longer, what steps are you taking to reduce the operating cash burn to a more acceptable level?

Ross Taylor: Well, Tyson covered a lot of ground that I wanted to address, but I think getting down to it, since it sounds like you expect to be in this situation for a quarter or two longer, what steps are you taking to reduce the operating cash burn to a more acceptable level?

Speaker #3: What steps are you taking to reduce the operating cash burn to a more acceptable level?

Speaker #4: Sure. So we're looking at things on the production side, production cost, people primarily. On the production side, what we can do there without hurting the longer-term prospects.

Rob Capps: Sure. We are looking at things on the production side, production costs, those are people primarily, on the production side, what we can do there without hurting the longer-term prospects. Same thing on the R&D side. I think we have really already done a lot on the G&A side, although there are a few tweaks here and there, but those are not the big dollars. We are definitely actively looking at those things right now, Ross.

Speaker #4: Same thing on the R&D side. I think we've really already done a lot on the G&A side, although there are a few tweaks here and there, but those aren't the big dollars.

Speaker #4: So we were definitely actively looking at those things right now, Ross.

Speaker #3: Okay. What are your public company costs?

P. Ross Taylor III: Okay. What are your public company costs?

Ross Taylor: Okay. What are your public company costs?

Speaker #4: Oh, gosh. Since I look at it, it's probably two, three million dollars anyway. On an annual basis.

Rob Capps: Oh, gosh. Since I look at it is probably $2 million, $3 million anyway on an annual basis.

P. Ross Taylor III: Okay. It is not meaningless as a-

Ross Taylor: Okay. It is not meaningless as-

Speaker #3: Okay. So it's not meaningless as a.

Speaker #4: Oh, no, definitely not. Definitely not.

Rob Capps: Oh, no, definitely not. Definitely not.

Speaker #3: Okay. It strikes me.

P. Ross Taylor III: Okay. It strikes me from the-

Ross Taylor: Okay. It strikes me from the-

Speaker #4: I mean, Ross, let me point you to something. If you look at our 10-Qs and our financial reports and our quarterly—I'm sorry, our segment disclosures—that gives you some idea of what the corporate costs are.

Rob Capps: Ross, let me point you to something. If you look at our Form 10-Qs and our financial reports and our segment disclosures, that gives you some idea of what the corporate costs are.

P. Ross Taylor III: Yeah.

Ross Taylor: Yeah.

Rob Capps: They are substantial. They are not all public company costs, but it gives you some idea of what that is.

Speaker #4: They're substantial. They're not all public company costs, but they give you some idea of what that is.

Speaker #3: Okay. I appreciate that. It does strike me as the situation in the Middle East and also in the Black Sea, actually, in many ways, should be driving increased demand for exploration away from those regions.

P. Ross Taylor III: Okay. I appreciate that. It does strike me as the situation in the Middle East and also in the Black Sea, actually, in many ways should be driving increased demand for exploration away from those regions. Is that something that you are seeing? Obviously, no matter what the outcome of the war with Iran is, it's going to lead to a lessened interest, demand, less confidence in that as an energy source. I would think that we would be seeing your customers accelerating a desire to explore elsewhere for oil, gas, and other things. Is that something you're seeing?

Ross Taylor: Okay. I appreciate that. It does strike me as the situation in the Middle East and also in the Black Sea, actually, in many ways should be driving increased demand for exploration away from those regions. Is that something that you are seeing? Obviously, no matter what the outcome of the war with Iran is, it's going to lead to a lessened interest, demand, less confidence in that as an energy source. I would think that we would be seeing your customers accelerating a desire to explore elsewhere for oil, gas, and other things. Is that something you're seeing?

Speaker #3: So is that something that you were seeing? I mean, obviously, no matter what the outcome of the war with Iran is, it's going to lead to a lessened interest demand, less confidence in that as an energy source.

Speaker #3: So I would think that we would be seeing your customers accelerating a desire to explore elsewhere for these types of— for oil, gas, and other things.

Speaker #3: Is that something you're seeing?

Rob Capps: Absolutely correct. Absolutely. Just how quickly does that happen? These projects have long lead times, so how quickly do we see them come to fruition and therefore filter down to our business? That's the uncertainty in our mind right now. There's no doubt in my mind, and I think most people's minds, that what you say is absolutely correct.

Speaker #4: Absolutely correct. Absolutely. Just how quickly does that happen? These projects have long lead times. So how quickly do we see them can fruition and therefore filter down to our business?

Speaker #4: That's the uncertainty in our mind right now. But there is no doubt in my mind—or, I think, in most people's minds—that what you say is absolutely correct.

Speaker #3: Okay. And the kind of just some with your answer to Tyson's question about cash, currently, you've got just under 16. So you would expect to be measurably higher than that level of cash at the end of the fiscal year?

P. Ross Taylor III: Okay. To just sum with your answer to Tyson Bauer's question about cash, currently, you've got just under 16, so you would expect to be measurably higher than that level of cash at the end of the fiscal year?

Ross Taylor: Okay. To just sum with your answer to Tyson Bauer's question about cash, currently, you've got just under 16, so you would expect to be measurably higher than that level of cash at the end of the fiscal year?

Rob Capps: That's correct.

Speaker #4: That's correct. Again, based on the collections from this one customer.

P. Ross Taylor III: Okay.

Ross Taylor: Okay.

Rob Capps: Again, based on the collections from this one customer.

Speaker #3: Okay. And you've talked a lot about the idea of doing a strategic potentially something strategic. Given the situation, I mean, it strikes me as mind lacks the size and the stability of revenues, or at least stability of earnings at this stage to do a lot to leverage your balance sheet.

P. Ross Taylor III: Okay. You have talked a lot about the idea of doing potentially something strategic. Given the situation, it strikes me as MIND lacks the size and the stability of revenues or at least stability of earnings at this stage to do a lot to leverage your balance sheet. I think you would be really reticent to make an acquisition that would involve a great deal of debt. However, at the same time, your stock is selling well under book value. I think book value, coming into the quarter, was, what? North of four and a half bucks a share.

Ross Taylor: Okay. You have talked a lot about the idea of doing potentially something strategic. Given the situation, it strikes me as MIND lacks the size and the stability of revenues or at least stability of earnings at this stage to do a lot to leverage your balance sheet. I think you would be really reticent to make an acquisition that would involve a great deal of debt. However, at the same time, your stock is selling well under book value. I think book value, coming into the quarter, was, what? North of four and a half bucks a share.

Speaker #3: I think you'd be really reticent to make an acquisition that would involve a great deal of debt. However, at the same time, your stock is selling well under book value.

Speaker #3: I think book value is coming into the quarter was, what, north of four and a half bucks a share. And so you're selling well under book, which makes it very difficult to use your stock unless a deal is really attractive.

Rob Capps: Yeah.

P. Ross Taylor III: You are selling well under book, which makes it very difficult to use your stock unless a deal is really attractive. So what kind of size are you looking at for a deal? You talked about transformative. To me, that means, a company that is more than its current size, bigger than it is. Is that a correct read?

Ross Taylor: You are selling well under book, which makes it very difficult to use your stock unless a deal is really attractive. So what kind of size are you looking at for a deal? You talked about transformative. To me, that means, a company that is more than its current size, bigger than it is. Is that a correct read?

Speaker #3: So how do you think what kind of size are you looking at for a deal? You talked about transformative. To me, that means a company that's more than its current size bigger than it is.

Speaker #3: Is that a correct read? And stability of profitability.

Rob Capps: I mean,

P. Ross Taylor III: stability of profitability.

Ross Taylor: stability of profitability.

Rob Capps: Yeah. Obviously, those deals don't come along every day, but if we can find that sort of situation or if we can find the tuck-ins that we can do on a reasonable basis to gradually increase scale. At some point, I think a more transformative transaction that you allude to makes some sense. Again, those are hard to come by, and if you can do it on a relative basis, perhaps it makes some sense. But those are the sort of things we are open to. As we've said before, we have a blank sheet of paper there, so we are open to lots of different ideas. But we recognize we need to change the scale of this operation in order to bring more stability to it.

Speaker #4: Yeah. I mean, obviously, those deals are don't come along every day. But if we can find that sort of situation or if we can find a tuck-ins that we can use we can do on a reasonable basis to gradually increase scale, but at some point, I think a more transformative transaction that you allude to makes some sense.

Speaker #4: But again, those are hard to come by. And if you can do it on a relative basis, perhaps it makes some sense. But those are the sort of things we have are open to.

Speaker #4: I mean, we're because we've said before, we are we have a blank sheet of paper there. So we are open to lots of different ideas, but we recognize we need to change the scale of this operation in order to bring more stability to it.

Speaker #3: Right. And changing the scale, you in many ways also mean you need to create a business that generates a consistent level of cash flow earnings, revenues, so that you can we can put a higher multiple on the overall business.

P. Ross Taylor III: Right. Changing the scale, you, in many ways also mean you need to create a business that generates a consistent level of cash flow, earnings, revenues so that we can put a higher multiple on the overall business, correct?

Ross Taylor: Right. Changing the scale, you, in many ways also mean you need to create a business that generates a consistent level of cash flow, earnings, revenues so that we can put a higher multiple on the overall business, correct?

Speaker #3: Correct?

Speaker #4: Sure.

Rob Capps: Sure.

P. Ross Taylor III: It's not just make it bigger, it's really making-

Ross Taylor: It's not just make it bigger, it's really making-

Speaker #3: It's not just make it bigger. It's really make it.

Rob Capps: No, absolutely.

Speaker #4: No, no, no.

P. Ross Taylor III: Yeah.

Ross Taylor: Yeah.

Speaker #3: Yeah.

Rob Capps: No, you're exactly right.

Speaker #4: No, no. You're exactly right.

Speaker #3: Okay. And I will say, while you talk about the idea that you kind of it seems that we're in a lot of blackout periods, it would be nice to find an open blackout an open period that would allow your insiders to buy stock.

P. Ross Taylor III: Okay. I will say, while you talk about the idea that it seems that you're in a lot of blackout periods, it would be nice to find an open period that would allow your insiders to buy stock. Right now, I think I can probably buy a couple shares of stock for a latte. It would strike me as it might be worthwhile to see some insider buying. There hasn't been insider buying in this company in a long time, and that would be a really nice vote of confidence.

Ross Taylor: Okay. I will say, while you talk about the idea that it seems that you're in a lot of blackout periods, it would be nice to find an open period that would allow your insiders to buy stock. Right now, I think I can probably buy a couple shares of stock for a latte. It would strike me as it might be worthwhile to see some insider buying. There hasn't been insider buying in this company in a long time, and that would be a really nice vote of confidence.

Speaker #3: I mean, right now, I think I can probably buy a couple of shares of stock for a latte. And it would strike me as it might be worthwhile to see some insider buying there hasn't been insider buying in this company in a long time, and that would be a really nice photo of confidence.

Rob Capps: I understand that 100%.

Speaker #4: I understand that. I have 100%.

P. Ross Taylor III: Okay.

Ross Taylor: Okay.

Speaker #3: Okay. Yeah. I was going to say, so if we can get ourselves to where cash is higher, we're trading well under book value, the stock does strike me as a very attractive investment here for a patient investor.

Rob Capps: Absolutely.

P. Ross Taylor III: Yeah, I was going to say, if we can get ourselves to where cash is higher, we are trading well under book value, the stock does strike me as a very attractive investment here for a patient investor.

Ross Taylor: Yeah, I was going to say, if we can get ourselves to where cash is higher, we are trading well under book value, the stock does strike me as a very attractive investment here for a patient investor.

Speaker #3: So good luck pushing forward.

Rob Capps: Yeah

P. Ross Taylor III: Good luck pushing forward.

Ross Taylor: Good luck pushing forward.

Rob Capps: All right, man. I appreciate it.

Speaker #4: All right, man. I appreciate it.

Speaker #3: Okay. Take care, sir.

P. Ross Taylor III: Okay. Take care, sir.

Ross Taylor: Okay. Take care, sir.

Rob Capps: Bye.

Speaker #4: Yeah.

Operator: This now concludes our question and answer session. I would like to turn the floor back over to management for closing comments.

Speaker #2: This now concludes our question and answer session. I would like to turn the floor back over to management for closing comments.

Rob Capps: Just like to thank everyone for joining us today, and look forward to giving you ongoing updates about our progress and talking to you again after our Q3. Thank you very much.

Speaker #4: Just like to thank everyone for joining us today and look forward to giving you ongoing updates about our progress and talking to you again after our third quarter.

Speaker #4: So thank you very much.

Operator: Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. Please disconnect your lines and have a wonderful day.