Brian Kinstlinger

Brian Kinstlinger inquired about the large Dataset delivery solution, its customer satisfaction, revenue consistency, and the pipeline for new customers, as well as the outlook for gross margin recovery and unit economics.

Answer

CEO Shachar Daniel clarified that the large Dataset delivery is a product demand, not a project, noting high customer satisfaction and good retention. He explained the difference in demand volatility between R&D and production-stage AI customers. Daniel detailed the strategy for gross margin recovery, including reducing reliance on third-party vendors by developing in-house solutions or acquisitions, and optimizing infrastructure efficiency. He anticipates lower third-party usage and material margin improvement in Q4, with potential for unit price increases as competition consolidates.

Brian Kinstlinger with Alliance Global Partners inquired about the large-scale Dataset delivery solution, its performance, customer satisfaction, and the consistency of revenue contribution from major AI customers over the next 12-18 months. He also asked about the predictability of usage once R&D customers transition to production, the pipeline for this new solution, and the long-term recovery of gross margins, unit economics, and pricing, including the reliance on third-party vendors.

Answer

Shachar Daniel, CEO of Alarum Technologies, clarified that the large-scale Dataset delivery is a product demand, not a project, driven by significant consumption from AI customers. He distinguished between "production stage" customers with stable data needs and "R&D stage" customers whose demands can fluctuate frequently. Daniel reported high customer satisfaction and good retention. He explained that while R&D requires massive data in short bursts, production usage becomes more sustainable over time, with continuous demand for new data sources. Daniel confirmed other existing customers are using Dataset capabilities and there's a pipeline for Dataset, Scraper, and Website Unblocker products. Regarding margins, he stated that without third-party vendors, Q3 gross margin would have been closer to 70%. He outlined a strategy to use third-party solutions initially for new demands, then develop in-house or acquire if demand proves sustainable, mitigating R&D risks. Daniel anticipates lower third-party usage and potential material margin improvement in Q4 and beyond, with unit prices potentially increasing as smaller competitors exit the market due to infrastructure demands. He emphasized improving infrastructure efficiency to reduce costs and enhance gross margins.

Brian Kinstlinger of Alliance Global Partners questioned the economics of the new large customer contract, asking why the significant Q3 revenue ramp isn't generating incremental EBITDA and why gross margins are low. He also sought clarity on the nature of the required infrastructure, the path to margin recovery, the specifics of the new product, and the growth trends in the broader customer base.

Answer

Shachar Daniel, Co-Founder & CEO, explained that the low margins are due to the project's massive scale and high initial technology infrastructure costs for a new dataset product, which the company is actively optimizing. He stated that margin recovery will come from cost structure improvements and adding more standard-margin projects. Daniel emphasized the project's strategic value for cross-selling, described the product's key differentiator as its immense bandwidth requirement, and confirmed that the broader pipeline and demand from AI customers are very strong.

Brian Kinstlinger inquired about the revenue contribution from TerraZone, the financial outlook for the continuing operations post-CyberKick scale-down (including revenue, gross margin, and adjusted EBITDA), details on a new AI customer and the associated business model, the sales process, and the company's sales pipeline and customer retention rate.

Answer

The company stated TerraZone had zero Q2 revenue. They expect gross margins to improve to around 70% and adjusted EBITDA to continue improving in Q3/Q4. The AI customer uses Alarum's platform for large-scale, anonymous web data collection on a subscription or pay-as-you-go basis. Sales are over 90% direct and highly automated from Israel. The company has a short sales cycle and focuses on its 'amazing' customer retention rate rather than a traditional pipeline, and continues to see growth despite the economic climate.

Brian Kinstlinger from Alliance Global Partners sought confirmation on the FRAIR contract's margin profile, assuming substantially higher EBITDA margins offset by CapEx, leading to a full-cycle cash generation. He also inquired about the 2026 economic outlook for the Egypt Smart City contract compared to 2025, updates on large MOUs like the One Amazon project, and key investments in personnel, staff, or facilities needed to capitalize on future opportunities.

Answer

Chairman and CEO Jay Chandan confirmed the FRAIR contract's higher EBITDA margins, explaining it as a long-term AI infrastructure relationship involving designing, building, operating, and monetizing, with additional services layered on top. He noted that cash generation would be full-cycle due to CapEx. Regarding the Egypt contract, Mr. Chandan stated that de-risking efforts have led to a more predictable and stable quarter-upon-quarter outlook for 2026. He provided updates on the One Amazon project, which is full steam ahead with a completed POC and an initial $100M program, and MOUs with TerraStrata for 120+ megawatts, none of which are in the 2026 guidance. For future investments, Mr. Chandan highlighted a strong focus on M&A for execution capabilities and expansion into India and the US, viewing potential acquisitions as strategic moves to gain scale, local teams, and credibility in hyper-growth and mature AI markets, respectively.

Brian Kinstlinger asked about the Freyr contract's margin profile, specifically if EBITDA margins are substantially higher than existing business operating margins, and how cash returns are affected by CapEx. He also questioned the expected changes in economics for the Egypt Smart City contract in 2026 versus 2025, sought updates on progress for significant MOUs like the Amazon one, and inquired about key investments needed in personnel, staff, or facilities to capitalize on future opportunities.

Answer

Chairman and CEO Jay Chandan confirmed that the Freyr contract, as a long-term AI infrastructure relationship, carries higher margins and EBITDA due to layered services beyond hosting, though cash generation is slightly full cycle due to CapEx. Regarding the Egypt Smart City contract, Mr. Chandan explained that de-risking efforts have led to more predictable and stable quarter-upon-quarter performance in 2026. He provided updates on the One Amazon project, which is full steam ahead with an initial $100 million program not yet in 2026 guidance, and other MOUs like TerraStrata. For key investments, Mr. Chandan highlighted a strong focus on M&A for execution depth and expansion into high-growth markets like India and the U.S., aiming to acquire capability and scale rather than just revenue.

Representing Brian Kinstlinger of Alliance Global Partners, a question was asked about the progress of large MOUs, which contract was closest to being signed, and the primary uses of the recent capital raise.

Answer

CEO Jay Chandan confirmed that MOUs for Wanhai Port and ADE have already been converted to contracts and are in deployment. He noted other MOUs are in mature stages, citing a successful proof-of-concept for the Thai police. CFO Bruce Bauer added that project lifecycles vary and some skip the MOU phase entirely. Regarding the capital raise, Mr. Chandan stated the funds are crucial for securing large projects that require significant bid bonds and will also support strategic M&A opportunities in India and the U.S., as well as R&D investments.

Asked for clarification on the status of the Royal Thai tourist police and smart education contracts, the nature of the $5M investment in the One Amazon project, the reason for lower Q1 gross margins, and the large cash outflow from unbilled receivables.

Answer

The company clarified the Thai police contract has a signed portion of $50-60M with a total opportunity now estimated at $500-550M. The smart education contract is in late-stage negotiations. The Amazon investment is a SAFE agreement for equity in the parent company of a 30-year environmental monitoring project. The lower Q1 margin was due to a higher hardware mix and seasonality and is expected to normalize. The cash outflow was from work performed but not yet invoiced, with collections improving in Q2.

Brian Kinstlinger asked for clarification on the status of the Royal Thai Tourist Police and smart education contracts, the nature of the One Amazon partnership investment, and the reasons for the quarterly gross margin miss and large cash outflow from unbilled receivables.

Answer

CEO Jay Chandan detailed the expansion of the Thai Police project, noting the initial $50-60M contract is signed and the total opportunity is now estimated at $500-550M over several years. He added that the smart education project is in late-stage negotiations and has expanded to include an $80M+ cloud infrastructure component. CFO Bruce Bower explained the One Amazon investment is a SAFE agreement for future equity. He attributed the lower gross margin to a higher hardware mix and seasonality, and confirmed the unbilled receivable was due to work performed in Q1 that had not yet been invoiced.

Brian Kinstlinger of Alliance Global Partners inquired about the status of the Royal Thai tourist police contract, the progress on the large smart education MOU, details of the investment in the One Amazon partnership, the cause for the Q1 gross margin being below target, and the large unbilled receivable outflow impacting cash flow.

Answer

CEO Jay Chandan confirmed the Thai police project has a signed value of $50-60M with a total opportunity of $500-550M over several years, and that the education project is in late-stage negotiations. He also detailed the strategic nature of the One Amazon project. CFO Bruce Bower explained the $5M Amazon investment is a SAFE agreement for equity in the parent company. Bower attributed the lower Q1 gross margin to a higher hardware mix and normal seasonality, and clarified the unbilled receivables were due to work performed in Q1 that had not yet been invoiced.

Brian Kinstlinger followed up on capital deployment, asking about the pipeline of other opportunities, potential competition with larger ETH holders, and whether some opportunities are exclusive to SharpLink. He also asked Joseph Lubin about Ethereum's positioning for agentic AI and autonomous digital commerce compared to other chains, and how the Fusaka upgrade improves this.

Answer

Joseph Chalom, Co-CEO, stated SharpLink is surveying the entire ecosystem for staking, restaking, liquid staking, and DeFi borrow/lend opportunities, emphasizing that their large, permanent capital base allows for multi-year commitments and enhanced incentives from protocols. Joseph Lubin, Chairman, highlighted Ethereum's strong position for agentic AI, mentioning ERC-804 for agent registration and X402 for micropayments, which could transform web interaction. He noted that Fusaka and future upgrades will enhance scalability, further supporting these trends. Joseph Chalom added that these use cases drive more ETH usage, reinforcing the long-term macro opportunity.

Brian Kinstlinger from Alliance Global Partners asked about the pipeline for other capital deployment opportunities, potential competition with larger ETH holders, and whether some opportunities are exclusive to SharpLink. He also inquired about Ethereum's positioning for agentic AI and autonomous digital commerce, and the impact of the Fusaka upgrade.

Answer

Joseph Chalom, Co-CEO, stated SharpLink is surveying the ecosystem for staking, restaking, and DeFi opportunities, noting that its permanent capital base allows for multi-year commitments that attract enhanced incentives. Joseph Lubin, Chairman, discussed the Ethereum ecosystem's excitement for agentic AI, mentioning ERC-8004 for AI registries and X402 for micropayments, which could transform web interaction. Chalom added that agentic AI is another tailwind for Ether usage.

Asked about key technical and ecosystem developments that will help Ethereum maintain its market leadership and inquired about the company's future plans for using debt or other non-equity instruments for capital raising.

Answer

Ethereum's lead will be sustained by a roadmap of technical upgrades like the Fusaka and Glamsterdam hard forks, which improve L1 and L2 scalability, combined with strong institutional adoption and legislative tailwinds. Regarding capital structure, the company has focused on equity but is actively evaluating equity-linked securities and preferreds to raise capital efficiently in the future.

Brian Kinstlinger asked about the key developments that will help Ethereum maintain its market lead and what investors should track. He also followed up on the company's capital raising strategy, specifically its approach to using debt.

Answer

Chairman Joseph Lubin highlighted upcoming technical upgrades like the 'Fusaka' and 'Glamsterdam' hard forks, designed to scale the network. Co-CEO Joseph Chalom added that institutional adoption and legislative tailwinds are critical drivers. Regarding capital structure, Chalom stated that while the focus has been on equity, the company is evaluating equity-linked securities and preferreds to raise capital efficiently, without specifying any debt ratio targets.

Brian Kinstlinger of Alliance Global Partners inquired about Rigetti's current progress on fidelity, specifically when 99.7% median two-qubit gate fidelity is expected for a 9-qubit chip, and how this timing aligns with the tiling process for the 100-qubit system by the end of 2026.

Answer

President and CEO Subodh Kulkarni explained that Rigetti is currently producing 9-qubit chiplets and tiling them for the 100+ qubit, 99.5% fidelity milestone by year-end. He expressed high confidence in achieving 99.7% fidelity with 150+ qubits by the end of next year, supported by current 9-qubit chiplet data.

Brian Kinstlinger followed up on Rigetti's roadmap, asking about current progress on fidelity and the expected timing to achieve 99.7% median 2-qubit gate fidelity for a 9-qubit chip. He also asked when this fidelity milestone needs to be reached to enable the tiling process for the 100-qubit target by the end of 2026.

Answer

President and CEO Subodh Kulkarni stated that Rigetti is currently making 9-qubit chiplets and tiling them for the 108-qubit, 99.5% fidelity milestone by year-end. He expressed high confidence in reaching 99.7% fidelity with over 150 qubits by the end of next year, based on current 9-qubit chiplet data. For the 1,000-qubit target, the plan involves increasing chiplet size to 36 qubits, which will be proven out next year.

Brian Kinstlinger from Alliance Global Partners asked at what point, short of full quantum advantage, a combination of performance metrics might begin to drive more significant revenue or larger-scale orders.

Answer

CEO Subodh Kulkarni reiterated that the company's primary focus is on achieving its technology roadmap, not near-term revenue, which consists of one-off research contracts. He acknowledged that as Rigetti gets closer to quantum advantage, interest from government labs and academic institutions for on-premise research systems will likely increase. He pointed to large government funding initiatives, like the NQI reauthorization, as the key source for these future opportunities.

Brian Kinstlinger inquired about Rigetti's progress on its chip tiling technology, questioning if the previously stated timelines of achieving 36 qubits by mid-2025 and over 100 qubits by year-end at 99.75% fidelity are still reasonable. He also asked for an update on the status of the National Quantum Initiative (NQI) Reauthorization Act.

Answer

CEO Subodh Kulkarni expressed confidence in the chiplet strategy, stating that all data looks promising for meeting the mid-year and year-end qubit count goals. He emphasized that this multi-chip approach is critical for scaling qubit counts across the industry. Regarding the NQI Act, Kulkarni noted it has bipartisan support but has not yet passed, and it would take at least a couple of months after passage for funds to be appropriated and flow to the ecosystem.

Brian Kinstlinger of Alliance Global Partners asked how competitors like IBM and Google are approaching scaling compared to Rigetti's tiling method. He also inquired about the implications of Amazon's recent error correction announcement for Rigetti's open-source architecture and whether government agencies like DARPA view this open model favorably. Finally, he requested a precise calculation of the '2x better' error rate target.

Answer

CEO Subodh Kulkarni stated that Rigetti is leading with tiling, IBM is exploring it, and Google's path is less clear. He emphasized that Rigetti's open, modular architecture is a significant advantage that is viewed favorably by government labs because it allows for the integration of third-party innovations, such as Amazon's error correction software. He clarified that a '2x reduction in error rates' translates to improving from 99.0% to 99.5% median fidelity for one gate type and from 99.5% to 99.75% for another.

Brian Kinstlinger asked about the potential impact of the NQI Reauthorization Act on government procurements, how customers are reacting to the new tiling strategy, and whether achieving the 100-qubit milestone would accelerate QPU purchases for R&D.

Answer

CEO Subodh Kulkarni described the NQI reauthorization as critical, noting the proposed funding is nearly 5x the original amount and would significantly increase opportunities. He said customers view the tiling approach favorably as a practical path to scale. Kulkarni believes that reaching 100 qubits at 99.5% fidelity will enable 'nano quantum advantage' applications, which should increase demand from government and research labs within the estimated $7.5 billion addressable market.

Brian Kinstlinger inquired whether LightPath Technologies expects to be adjusted EBITDA profitable on the projected $54 million revenue from the current backlog for the next fiscal year, and if a 5% target is reasonable, or if profitability is more of a second-half event. He also asked for an update on the G5 earnout targets, specifically regarding the ability to meet both revenue and EBITDA goals.

Answer

CFO Al Miranda indicated that consensus revenue would need to be raised by about 10%, and with that higher revenue, he expects positive adjusted EBITDA. He confirmed that profitability, based on gross margin comments, is more likely a second-half event for the next fiscal year. Regarding G5 earnout targets, Al Miranda reiterated the revenue targets ($21M, $23M, $25M, $27M) with a consistent 20% EBITDA. He noted that the backlog suggests the first revenue mark will be met, but the 20% EBITDA target remains the uncertain piece.

Brian Kinstlinger calculated potential fiscal year revenue from the backlog and asked if the company would be adjusted EBITDA profitable on that amount, inquiring if a 5% target is reasonable and if profitability is expected in the first or second half of the upcoming fiscal year. He also requested a reminder of the G5 earnout revenue and EBITDA targets for the first tranche, specifically questioning the likelihood of meeting the EBITDA target.

Answer

CFO Al Miranda indicated that a 10% increase in consensus revenue would lead to positive adjusted EBITDA, with profitability expected to be a second-half fiscal year event as gross margins improve. He reiterated G5's first earnout target of $21 million in revenue with 20% EBITDA, confirming that the current backlog suggests the revenue target will be met, but emphasized the importance of achieving the 20% EBITDA.

Brian Kinstlinger inquired about the estimated revenue from the $90 million backlog for the next fiscal year and whether the company expects to be adjusted EBITDA profitable on that revenue, including the timeframe for achieving profitability. He also asked for a reminder of G5's earnout targets for revenue and EBITDA and the company's confidence in meeting them.

Answer

CFO Albert Miranda indicated that approximately $54 million of the backlog is expected for the next fiscal year and that the company anticipates being adjusted EBITDA profitable on this higher revenue level, with margin expansion and profitability likely in the second half of the year. He reminded that G5's earnout targets were $21 million, $23 million, $25 million, and $27 million in revenue, each with 20% EBITDA, and that the backlog suggests the first revenue target will be met, with the EBITDA target being the key focus.

Asked for quantification of upcoming M&A expenses, an update on previously mentioned yield/supply chain issues, the status of key G5 contracts, and G5's progress towards its earn-out targets.

Answer

Expect around $300k in extra M&A-related costs (legal, audit, consulting). Previous yield and supply chain issues from China are now 'much, much better' and largely resolved. The G5 Navy contract is an awarded sole-source program, while the Border Patrol contract is an IDIQ where G5 is well-positioned through its partner Elbit. G5 is on track to meet its first earn-out targets of $21M revenue and 20% EBITDA margin.

Brian Kinstlinger sought to quantify the expected non-amortization M&A expenses, asked for an update on previously mentioned yield and supply chain issues, clarified the procurement status of G5's key defense contracts, and inquired about G5's progress towards its earn-out targets.

Answer

CFO Albert Miranda estimated the additional M&A-related expenses (legal, audit, consulting) would be around $300,000 for the quarter. Executive Sam Rubin confirmed that prior yield issues are largely resolved and supply chain challenges for non-germanium optics are improving. He clarified the Navy SPEIR program is an awarded, sole-source contract, while the Border Patrol program is an IDIQ where G5 supplies the preferred vendor. Miranda noted G5 has approximately $19 million in shipments and bookings towards its $21 million first earn-out revenue target, which also requires a 20% EBITDA margin.

Brian Kinstlinger asked about the status of G5's key growth programs, whether the combined company would be EBITDA profitable, the sales ramp for the MANTIS camera, concerns over tariffs, and the company's reliance on Chinese imports.

Answer

CEO Sam Rubin confirmed one key G5 program is already shipping and another major order is expected 'any day now.' CFO Albert Miranda stated the combined company 'should be positive' from an EBITDA perspective in the June quarter. Sam Rubin noted MANTIS furnace camera sales are growing, but gas detection cameras are awaiting final testing. Albert Miranda explained that tariffs are being passed through to customers and that about $8 million in revenue relies on Chinese exports, with the primary risk centered on germanium.

Asked a series of detailed questions regarding the timeline and scale of camera adoption, the status of a large former customer, the timeline for Phase 2 of DLA testing, and how to reconcile a flat backlog with expectations for accelerated growth.

Answer

Camera order pickup is expected over the next 7-8 months as customers' new budgets come into effect. The company is actively working to win back the large former customer. Phase 2 of DLA testing could take up to 24 months. The flat backlog is misleading because it reflects growth in other areas that offset the loss of a $4-6 million annual customer, and much of the new camera business is quick-turn and doesn't flow through long-term backlog.

Brian Kinstlinger asked about the fiscal 2025 revenue outlook, seasonality, the status of the largest customer's transition to Black Diamond optics, the competitive landscape for the Lockheed Martin missile program, and the production timeline for a second airborne system program of record.

Answer

CEO Sam Rubin projected low double-digit growth for fiscal 2025, noting the largest customer is still evaluating Black Diamond optics. He detailed the competitive dynamics with Raytheon for the missile contract, with a decision expected around September or November 2025. Rubin also confirmed LightPath is the sole source for a second airborne system and expects to deliver prototypes by the end of the calendar year. CFO Albert Miranda added that the company's Latvia facility can also be used for ITAR defense work.

Brian Kinstlinger of Alliance Global Partners asked about Aterian's expansion plans for consumable products beyond wipes, the timeline for reducing manufacturing in China, performance in Latin American markets, and the company's current stance on M&A opportunities.

Answer

CEO Arturo Rodriguez responded that the company is focusing on the health and beauty space for new US-sourced consumables, with launches expected in October 2025. He noted that while the 30% tariff rate makes diversifying from China more difficult, they have already reduced China-sourcing for dehumidifiers by 35%. Rodriguez described the Latin American expansion as a long-term initiative with gradual growth expected. On M&A, he stated that the immediate priority is stabilizing the business and achieving H2 guidance, putting acquisitions on hold for now.

Asked about the upcoming launch on Target.com, the strategy for expanding SKUs on new channels, the pace of new product launches, the Q3 G&A run rate, the use of excess capital for M&A, and current M&A valuation multiples.

Answer

The company is confident about launching on Target before Black Friday with at least 6 SKUs. They are starting cautiously on new channels to learn before expanding. New product launches are deliberate and focused on quality over quantity. Q3 G&A was artificially low due to a one-time insurance refund. Excess capital will be used for working capital to support growth and for strategic M&A. M&A valuations are varied, but a 3-4x EBITDA multiple is considered a good deal.

Brian Kinstlinger of Alliance Global Partners sought clarification on the specific QSR installs driving second-half confidence, the opt-in status for the large QSR rollout, the impact of sports off-seasons on installations, and how tariffs are affecting customer decisions.

Answer

CEO Rick Mills clarified that the second-half confidence is driven by a large QSR customer who is proceeding with a full rollout beyond the initial pilot phase, as the client feels they are already behind schedule. He noted that sports venue installations typically occur during the off-season and can be deployed quickly post-agreement. Regarding tariffs, Mills stated that while a few customers made bulk hardware purchases due to uncertainty, screen manufacturers have not yet raised prices.

Asked for specifics on the Reflect settlement warrants, clarification on financial guidance (H2 acceleration, 15% EBITDA margin), contract values for sports venues, the reason for the BCTV pause, and the typical ramp-up time for new contracts.

Answer

Executives provided warrant details (777,790 warrants, $3.25 strike, 6-year term). They reiterated confidence in H2 acceleration driven by a handful of large projects materializing, with a full-year 2025 EBITDA margin target of 15%. Sports venue contracts range from $150k to over $2M. The BCTV pause is due to a funding halt on the client's side. New contracts typically involve a 90-day proof-of-concept phase followed by a 60-90 day evaluation before a full rollout.

Inquired about the size and composition of the sales pipeline, the 'restructuring' of the IPTV division, the reasons for multiple order delays, the outlook for the bowling contract, and the cause of a significant drop in G&A expenses.

Answer

The pipeline is fuller than ever with 5-10 significant projects, primarily in QSR, retail, C-stores, and IPTV. The IPTV division was expanded with more resources, not downsized. Order delays are attributed to the increased scale of deals requiring more third-party validation. The bowling contract's ramp-up depends on third parties. The G&A reduction was due to personnel reallocations and accounting shifts, reflecting a flattening cost structure and increasing operating leverage.

Brian Kinstlinger of Alliance Global Partners asked for the current B2B revenue run rate, the company's digital currency strategy, the expected timeline for Tesla conversions to impact results, and details on the Fortune 250 streaming network partnership.

Answer

CEO Rob Ellin explained that the B2B revenue stream is just beginning and will ramp significantly in late fiscal Q3 and Q4, declining to provide a current run rate. He positioned the digital currency plan as a protected, yield-generating strategy with board approval for expansion. For Tesla, the goal is to convert 20-30% of users over 12-24 months. He could not yet detail the Fortune 250 deal but confirmed partnerships will be announced and co-branded as "powered by LiveOne."

Brian Kinstlinger asked for the current B2B revenue run rate, the company's digital currency strategy, the expected timeline for Tesla conversions to impact results, details on the Fortune 250 streaming network partnership, and whether white-labeled deals would be publicly announced.

Answer

CEO Robert Ellin declined to provide a specific B2B run rate but noted revenues would ramp in fiscal Q3/Q4. He described the digital currency strategy as being a 'thought leader' with a protected, yield-generating position. Ellin reiterated the goal to convert 20-30% of Tesla users over 12-24 months. He confirmed that while the Fortune 250 partner cannot be named yet, white-label deals will be announced and will feature 'powered by LiveOne' branding.

Brian Kinstlinger of Alliance Global Partners questioned the current B2B revenue run rate, the company's digital currency strategy, the expected timeline for Tesla subscriber conversions to become impactful, details on the Fortune 250 streaming network deal, and whether white-labeled partnerships would be publicly announced.

Answer

CEO Rob Ellin could not provide a specific B2B run rate but reiterated a significant ramp in late Q3 and Q4. He described the digital currency approach as a protected 'Bitcoin yield' strategy to mitigate volatility while staying at the forefront of technology. He projected a 12-24 month timeline to convert 20-30% of Tesla users. While not naming the Fortune 250 partner, he confirmed a successful soft launch and stated that even white-labeled deals will be announced and feature 'powered by LiveOne' branding.

Brian Kinstlinger from Alliance Global Partners sought details on the major B2B deal slated for an August launch, asking if the deal is already signed, when revenue generation will begin, how it is expected to ramp, and whether the partner's identity could be disclosed.

Answer

Founder, Chairman & CEO Robert Ellin confirmed that the significant B2B deal scheduled to launch in August is already signed. He stated that while the partner's name cannot yet be announced, they have a subscriber base more than ten times larger than Tesla's. Ellin expressed high confidence in the launch's success, citing the high conversion rates seen with the Tesla partnership as proof of the platform's strong appeal to new user bases.

Brian Kinstlinger asked about the expected Average Revenue Per User (ARPU) for Slacker Radio going forward, the user experience for new Tesla owners under the revised contract, and the reasons for rising costs and margin pressure at PodcastOne despite new talent acquisitions.

Answer

CEO Robert Ellin responded that while a precise ARPU is hard to forecast, the company sees a significant opportunity to raise prices, similar to competitors. For new Tesla owners, he described the new model offering a choice between ad-supported and subscription tiers, noting a surprisingly high initial sign-up rate for the free service. Regarding PodcastOne's margins, Ellin attributed the pressure to upfront costs for new talent, advertiser payment cycles of 90-120 days, and the current competitive "land grab" for top podcasters. He expressed confidence that margins are beginning to reverse and will improve over the next 6 to 9 months.

Brian Kinstlinger asked a series of questions regarding LiveOne's subscriber metrics, the new Tesla partnership, and operational strategy. He inquired about the number of non-Tesla paid subscribers, user engagement levels, early conversion rates from the new Tesla deal, the status of the TextNow integration, and the outlook for podcast acquisitions. Kinstlinger also questioned management's approach to overhead costs during the Tesla transition period.

Answer

CEO Rob Ellin explained that specific subscriber counts are confidential but highlighted strong user engagement and promising early sign-ups under the new Tesla terms, emphasizing the value of new, prominent in-car branding. He noted the TextNow partnership is in its initial trial phase. On the podcast front, Ellin detailed significant growth, with 49 new shows added in the past year and a pipeline of over 100. Regarding overhead, he stated the company will assess the impact of Tesla conversions before making changes, noting that 70% of the associated costs are variable music royalties that would decrease with subscriber churn.

Brian Kinstlinger from Alliance Global Partners asked about the status of customer evaluations for Panther Creek, the impact of the T5 partnership on those discussions, and the future outlook for the Bitcoin mining hash rate.

Answer

CEO Ben Gagnon confirmed active customer conversations have accelerated with land and power certainty. He stated that partnering with T5, a trusted hyperscaler builder, adds significant credibility. Regarding mining, Gagnon said there are no plans for growth; the hash rate should remain flat but may see gradual reductions as sites are converted to HPC, given the superior ROI potential of the HPC strategy.

Brian Kinstlinger questioned what hyperscalers need to see to begin their initial site assessments and asked about the company's go-forward strategy for holding versus selling its mined Bitcoin.

Answer

CEO Ben Gagnon explained that after securing the sites, the next critical step is completing the master site plan, which provides the timelines, budgets, and construction details that serious customers require. CFO Jeff Lucas stated that going forward, Bitcoin sales will cover monthly operating requirements of about $6-6.2 million, with the remainder being added to the HODL or used strategically in the Bitcoin One program.

Brian Kinstlinger requested an update on the HPC pilot projects that were previously mentioned in November and their expected timelines.

Answer

CEO Ben Gagnon explained that a potential pilot project evolved into a larger full-site opportunity, which requires a longer evaluation timeline for the customer. As a result, Bitfarms has no definitive timeline for that specific pilot and is currently focusing its capital and efforts on developing the powered land and shell potential at its Pennsylvania sites.

Brian Kinstlinger of Alliance Global Partners inquired about the mix of government versus commercial bookings in the strong first half of the year, given the uncertain government funding environment. He also asked how bid and proposal activity is being impacted, what the company's win rate is on competitive bids, and what the recent trend has been for near-term proposal activity and the overall pipeline.

Answer

CEO Mike Knowles explained that first-half bookings were weighted more toward defense, with a notable pickup in government orders in the second quarter. He stated that the company is well-aligned to capture future opportunities and is more focused on the timing of government budget releases than the pipeline itself. Knowles highlighted that while most business is won on a sole-source basis, the company wins 70-75% of the deals it competes for. He also confirmed a steady quarter-over-quarter increase in requests for information and proposals from 2024 into 2025, indicating a growing pipeline.

Brian Kinstlinger inquired about revenue visibility for the year, the delivery timeline for a major $6.5 million contract, and the scale of the sales pipeline. He also sought details on a potential $200 million Army program and the company's data center market opportunity, and asked for clarification on book-to-bill metrics.

Answer

Executive Michael Knowles explained that 2025 revenue is a mix of existing backlog and new bookings from H1, and confirmed the Army opportunity involves a unique OSS solution currently under evaluation. He also detailed the data center strategy focused on high-density GPU expansion. Executive Daniel Gabel added that the $6.5 million contract is expected to be fully delivered in 2025. Knowles clarified the 2.0 book-to-bill was for Q1, while 1.33 was for the trailing twelve months.

Brian Kinstlinger of Alliance Global Partners questioned the drivers behind the OSS segment's Q4 gross margin pressure, the impact of government order delays on the 2025 pipeline, and the market opportunity for server extension sales to AI infrastructure companies.

Answer

CFO Daniel Gabel attributed the Q4 OSS segment gross margin pressure to a less profitable product mix, noting full-year 2024 margins were stable and are expected to rebound in Q1 2025. Executive Michael Knowles confirmed that while government budget delays are affecting order timing, the overall $1 billion pipeline remains stable with sufficient opportunities to meet 2025 targets. Knowles also highlighted a significant $200 million multiyear opportunity in the server extension market, driven by AI infrastructure demand and new GPU technologies.

Brian Kinstlinger of Alliance Global Partners asked about the composition of recent bookings, specifically the defense vs. commercial split, and inquired about seasonality and the potential impact of a new U.S. administration. He also questioned the addressable portion of the $1 billion pipeline for 2025 and sought details on the high OSS segment gross margin.

Answer

Company executives, including Jim Ison, explained that bookings growth is driven by broader market outreach and strong demand for AI and autonomy solutions, with a bookings mix of approximately 55-60% from defense. They anticipate a new administration could be a net positive due to increased defense focus. Regarding the pipeline, roughly one-fifth of the $1 billion is addressable in 2025. An executive clarified that the strong OSS segment margin was due to a favorable product mix of high-margin server and storage systems, which offset lower-margin development revenue. They project the OSS segment can achieve gross margins of 35% or better within 18 months as development programs convert to production.

Brian Kinstlinger of Alliance Global Partners asked about the future margin profile of the contract that incurred the large EAC charge, whether the $325 million in LRR program funding is for a single year, and the expected timeline for the prototype evaluation.

Answer

CFO Jonathan Baliff explained that the company takes a conservative approach with EACs, and the contract is expected to continue generating cash flow and margin as work progresses. CEO Peter Cannito confirmed the $325 million LRR funding is the budget line for fiscal year 2026. Both executives suggested the prototype evaluation will be expedited, citing the DoD's memo on achieving U.S. drone dominance as a key priority.

Brian Kinstlinger asked for the total value of outstanding bids, the value of delayed awards, and how the gross margin mix of the current pipeline compares to the trailing 12 months.

Answer

Jonathan Baliff, CFO, did not disclose specific bid values but stated the goal is for new bids to have higher margins. He highlighted a Q1 revenue mix shift toward National Security (32%). Peter Cannito, CEO, added that the company balances its portfolio, sometimes taking on large projects with lower gross margin percentages but higher absolute gross profit, which still enhances EBITDA through scale.

Brian Kinstlinger questioned the potential impact of U.S. policy on Edge Autonomy's Ukraine-related revenue, the effect of the U.S. budgetary environment on Redwire's business, and requested an updated share count following the recent warrant redemption.

Answer

CEO Peter Cannito stated that the company took a 'very conservative' approach to forecasting Ukraine-related revenue and sees continued opportunity for drone surveillance even in a post-conflict scenario. He noted that Redwire can weather short-term government budget issues due to its multiyear contracts. CFO Jonathan Baliff confirmed the company has 'record liquidity' and provided an updated share count of 75,573,294 shares.

Brian Kinstlinger of Alliance Global Partners asked about the typical sales cycle for large proposals, what market changes are driving the increased bid volume, and the reasons for the year-over-year decline in gross margin, along with its long-term outlook.

Answer

Chairman and CEO Peter Cannito explained that sales cycles vary, with large government procurements taking months, and attributed the higher bid volume to Redwire's internal strategy of building capabilities to pursue larger deals. CFO Jonathan Baliff addressed margins, noting a sequential improvement and attributing past pressure to program mix and EACs, while stating a focus on returning to 20%+ levels. Mr. Cannito added that the company might strategically pursue lower-margin contracts if they generate significant absolute free cash flow and operating leverage.

Brian Kinstlinger from Alliance Global Partners asked about the expected timeline to see improved bookings from Oracle support following the settlement, the historical revenue trend of the Oracle business, and the geographic breakdown of the PeopleSoft revenue being wound down.

Answer

CEO Seth Ravin stated that the company is already seeing previously hesitant prospects and partners re-engage post-settlement and expects a tangible impact on financial numbers as early as Q3 2025. He noted that the 2023 district court ruling had negatively impacted the overall business, and its reversal changes the landscape. He deferred providing specific growth percentages for the Oracle business until the Analyst Day, citing the need to clarify trends separate from the PeopleSoft wind-down. He also confirmed the PeopleSoft revenue is global but more concentrated in North America.

Brian Kinstlinger inquired about Rimini Street's three new partnerships, asking which has the largest long-term potential and which might deliver the earliest impact. He also asked about the size of the U.S. federal government market opportunity, the company's security clearance readiness, and whether the recent increase in deferred revenue signals a return to year-over-year growth, excluding the PeopleSoft wind-down.

Answer

CEO Seth Ravin identified the ServiceNow partnership as having the most significant long-term potential, with meaningful revenue expected in 2026. He positioned the T-Systems partnership as a major opportunity with SAP clients and the Workday partnership as a way to provide application management services to a large customer base. Ravin estimated the U.S. federal government opportunity in the "billions of dollars" annually and confirmed Rimini Street has experience with high-security clearance operations. He also expressed confidence that growth from new opportunities would overcome the revenue headwinds from the ongoing, multi-year PeopleSoft wind-down.

Brian Kinstlinger asked about the outlook for a return to revenue growth in 2025, the health of the sales pipeline given recent litigation news, and for clarification on operating expense savings.

Answer

CEO Seth Ravin expressed confidence that the company is on an upward trajectory back to growth, describing it as being on the "upper side of the U-turn." He noted the positive December appellate court ruling was too late to impact Q4 but hopes it will provide an uplift. CFO Michael Perica clarified that the Q4 cost savings variance was due to onetime, nonrecurring project spend and that the annualized savings run-rate was $18 million at year-end, reaching $22 million by mid-Q1 2025.

Brian Kinstlinger inquired about the timeline for completing the $35 million cost optimization plan, the specifics of Rimini Street's role and revenue ramp in the new ServiceNow partnership, the potential gross margin impact from new service offerings like VMware and ServiceNow, and the reasons for the disconnect between cash flow and EBITDA.

Answer

CFO Michael Perica clarified that the cost optimization plan is expected to be completed by the end of Q4 2024. CEO Seth Ravin explained that Rimini Street will design and deploy the ServiceNow layer over existing ERPs, performing all the service work while ServiceNow sells the licenses. He noted sales processes are underway with potential deals by year-end or early next year. Michael Perica acknowledged that new offerings typically have lower initial gross margins but are being managed. He also explained the company's typical cash flow seasonality, with cash generation in the first half and burn in the second half, contributes to the current cash flow dynamics.

Inquired about the business potential of the CineSearch and Matchpoint technology products, including the sales pipeline, potential deal sizes, and timeline for significant revenue impact. Also asked for details on the podcasting business's monetization strategy, direct sponsorship deals, and growth outlook.

Answer

For its technology, the company is now targeting major studios with its Matchpoint platform, with potential deals in the mid-seven-figure annual range, and one studio is already moving to a pilot. For podcasting, the strategy is focused on premium content and direct sales, which command higher CPMs than programmatic. They are securing low six-figure deals and expect to potentially double last year's podcast revenue.

Inquired about the company's plans to take on debt, the cost and targeted ROI for content acquisitions, monetization progress for CineSearch, the revenue potential of Matchpoint deals, and the revenue contribution and growth drivers for the subscription and podcasting businesses.

Answer

The company's investment in new films is expected to be below the ~$5 million spent on 'Terrifier 3', creating a favorable risk/reward profile. They are focused on ROI and partnerships to mitigate risk. CineSearch commercialization is expected in the next fiscal year. Matchpoint deals are targeted at low six-figures annually for SMBs and potentially millions for enterprise clients. The podcasting business is growing through bundled campaigns, and the subscription business is targeted to accelerate growth to over 15% from its current 6-7% rate.

Brian Kinstlinger from Alliance Global Partners asked about the company's plans to take on debt, the acquisition costs and ROI targets for its film slate, the monetization progress of CineSearch and Matchpoint, and the revenue contribution from the subscription and podcasting businesses.

Answer

Chairman and CEO Chris McGurk stated that the total investment for upcoming films is expected to be below the approximate $5 million spent on 'Terrifier 3,' creating a highly positive risk-reward profile. President and CSO Erick Opeka added that partnerships, like with STUDIOCANAL, further mitigate risk. Opeka also detailed that Matchpoint's revenue opportunity ranges from low six-figures for SMBs to multi-millions for enterprise clients. He noted podcasting downloads hit a high of 15 million and the goal for the subscription business is to accelerate growth from 6-7% to over 15% annually.

Asked about the evaluation process for future film releases, the criteria for wide vs. limited release, the revenue model for cineSearch, and the potential for podcasting revenue to outpace audience growth.

Answer

Films will be evaluated based on their fit with Cineverse's ecosystem, fan appeal, and known IP, with a focus on low financial risk. Release strategy (wide vs. limited) is decided case-by-case. The cineSearch revenue model will be bespoke, likely a license fee plus variable costs. Podcast revenue is expected to outpace audience growth in the short term as monetization ramps up.

Brian Kinstlinger inquired about the company's evaluation process for selecting future independent films to distribute and how it will determine whether to pursue a wide or limited theatrical release. He also asked for details on the revenue model for the cineSearch platform and whether podcasting revenue growth is expected to outpace audience growth due to higher advertising yields.

Answer

Chairman and CEO Chris McGurk stated that the company uses an exhaustive greenlighting process that prioritizes properties with built-in fan bases that can be leveraged by Cineverse's ecosystem, such as in the horror and family genres. He noted the goal is wide releases, but the decision is made case-by-case. President and Chief Strategy Officer Erick Opeka described the cineSearch revenue model as a bespoke approach for partners, likely combining license fees and variable costs. Regarding podcasting, Opeka confirmed that revenue growth is expected to outpace audience growth in the short term as monetization efforts ramp up.

Brian Kinstlinger of Alliance Global Partners inquired about the reasons for the stronger-than-expected Q2 demand in the Marine Products business, the release timing for the new Nano Echoscope, the scope of the five DAVD development programs, progress on securing design wins for next-generation underwater vehicles, and the outlook for the remainder of the fiscal year.

Answer

Chairman & CEO Annmarie Gayle attributed the strong quarter to robust inquiries for Echoscope hardware from Asia and a significant pickup in the DAVD program. She noted the Nano Echoscope would be launched after critical defense trials in June 2025. President of Technology Blair Cunningham explained that the five development programs are focused on integrating existing and new equipment into the DAVD ecosystem, particularly for untethered applications. Annmarie Gayle concluded that while specific design win timelines are hard to predict, the Echoscope is a strong contender in multiple programs, and she expects the Marine Technology business to continue its positive momentum in Q3 and Q4.

Brian Kinstlinger inquired about the recovery timeline for the Marine Technology business, the revenue outlook for the DAVD systems, the potential impact of market uncertainty on the new Precision Acoustics unit, and the status of a potential M&A transaction.

Answer

CEO Annmarie Gayle stated that while Q2 is expected to be soft for marine products due to policy uncertainty, she anticipates a robust Q3 and Q4. She projected DAVD revenues to grow to approximately $4.5 million this year, up from $1.5 million last year, driven by both tethered and untethered systems. Gayle also noted that the Precision Acoustics business is more resilient due to its medical applications. Regarding M&A, she confirmed the company has deliberately slowed the process to await clarity on the global policy environment. President of Technology Blair Cunningham added that the 16-unit DAVD order is a critical pre-fleet deployment and that engagement with foreign navies has advanced significantly.

Brian Kinstlinger from Alliance Global Partners asked why the fiscal 2026 outlook remains unchanged despite accelerating AirDial demand and questioned the impact of tariffs on Ooma's subscriber base and sales cycles.

Answer

CEO Eric Stang explained that while AirDial opportunities are growing, particularly with the new Comcast partnership, the sales cycle for larger accounts takes time to impact revenue, justifying the steady guidance. He also stated that the company has not observed any discernible impact from tariffs on its customer base or new sales opportunities to date.

Brian Kinstlinger of Alliance Global Partners asked why the fiscal 2026 outlook remains unchanged despite accelerating demand and new partnerships for AirDial. He also questioned the potential impact of tariffs on Ooma's SMB subscriber base and sales cycles.

Answer

CEO Eric Stang noted that while AirDial opportunities are growing, particularly with the new Comcast partnership, large deals have long sales cycles and it will take time for the partnership to ramp up. Regarding tariffs, he stated that the company has not observed any discernible impact on its customer base or sales pipeline, pointing to strong sequential growth in new accounts won in Q1.

Inquired about the scale and timeline of the Marriott deal, the reasons for limited visibility on the large cable partner's ramp, and the future churn expectations from its customer IWG.

Answer

The Marriott opportunity is significant, with over 5,000 US properties and potential for 20-40 lines per large property, but the replacement timeline is still unknown. Visibility on the new large cable partner is limited by the unpredictable pace of their sales ramp post-launch. Churn from IWG is expected to stabilize after Q1, with potential for future growth opportunities.

Asked about the expected timing and financial impact of the new AirDial partnerships in fiscal '26, the potential revenue opportunity from a specific partner's customer base, and the average revenue per line.

Answer

The CEO stated that more clarity on the fiscal '26 impact of AirDial will be provided in the March guidance, acknowledging a ramp-up period for new partners. However, one major partner aims to launch in Q1. He confirmed that a partner with 100,000+ lines represents a significant opportunity, as a majority are expected to convert over time, and suggested modeling AirDial at approximately $300 in annual revenue per line.

Brian Kinstlinger asked for guidance on when the new AirDial partnerships will become a more significant catalyst to the P&L in fiscal '26. He also sought to clarify the potential revenue opportunity from a partner with 100,000 business and 10,000 residential copper lines.

Answer

CEO Eric Stang explained that it's too early to provide a firm timeline for the P&L impact, noting that partner and customer ramp-ups take time for training, proof-of-concepts, and phased rollouts. He expects to provide a clearer picture with the annual guidance in March. For the revenue opportunity, he stated that a 'significant majority' of such lines are expected to convert. He reminded investors to model AirDial at approximately $300 per line in annual recurring revenue to Ooma, though specific partner pricing varies.

Brian Kinstlinger inquired about the execution and potential residential impact of the new top 10 service provider deal, whether consumers must opt-in, and the rationale behind the flat net income guidance despite improving hardware margins. He also asked for updates on the large 2600hz customer rollout and the potential size of the new carrier opportunity.

Answer

CEO Eric Stang clarified the new carrier deal covers both AirDial for business and Telo for residential, noting the carrier can move at its own pace after a 90-day customer notice period. He described the opportunity as significant but was not ready to provide specific guidance. CFO Shigeyuki Hamamatsu explained that the net income guidance reflects the deferral of IWG churn into the second half, some one-time Q3 revenue, potential marketing spend increases, and seasonal G&A costs like audit fees, which offset the expected improvement in hardware gross margin.

Inquired about the expected timing for the delayed projects to restart and asked for more details on potential future operating expense reductions.

Answer

Francois Godfrey stated that based on current visibility, most delayed projects are expected to commence in the first half of fiscal 2026, though the timing is ultimately up to the customer. William Greene added that potential future opex savings would be incremental, coming from areas like public company costs and vendor contracts, but the current expense level is a reasonable forecast.

Brian Kinstlinger requested a quantification of the sales pipeline, such as total contract value (TCV), and asked for commentary on its growth trends. He also sought clarification on the relationship between the number of radio occultation (RO) soundings and revenue in the NOAA contract.

Answer

CEO Theresa Condor stated that Spire does not disclose specific pipeline metrics but expressed strong confidence in demand, particularly from government customers in the U.S. and internationally. She confirmed the NOAA contract is priced per sounding, meaning that as the agency procures more ROs, revenue will increase accordingly, assuming Spire wins and delivers on the contract.

Brian Kinstlinger asked what provides confidence in closing the maritime business sale within 6-8 weeks and requested an update on the aviation collaboration with Thales and ESSP.

Answer

Chairman Peter Platzer cited three reasons for confidence in the maritime deal's closing: a strong 'hell-or-high-water' contract provision, the engagement of an experienced legal partner, and the counterparty's public statements to a judge about closing by mid-April. Regarding aviation, he noted that while recent business disruptions caused anxiety among European partners, he expects conversations and demand to accelerate now that the restatement is complete.

Brian Kinstlinger inquired about the strength of the near-term awards pipeline for the second half of the year and asked about the competitive advantage and customer stickiness for its Space Services business, specifically regarding the ease of switching providers.

Answer

CFO Leo Basola confirmed a significant pipeline supports H2 growth, with good visibility on key Space Services follow-on orders. CEO Peter Platzer added that while customers can theoretically switch providers, the high switching costs and risks create strong stickiness. He emphasized Spire's key advantage is its unparalleled operational experience, as it runs its own business on the exact same technology, ensuring deep commitment.

Brian Kinstlinger focused on business development, asking for quantification of 2024 contract awards for the non-maritime business and whether 2025 would be a stronger year for new business given global trends.

Answer

CEO Theresa Condor stated she expects 2025 to be a stronger year for sales and order intake, consistent with historical year-over-year growth trends, and anticipates this strength from both U.S. and European markets. Interim CFO Thomas Krywe added that growth will be driven by both the Space Services and the emerging Radio Frequency Geolocation (RFGL) business areas.

Brian Kinstlinger of Alliance Global Partners asked about customer concentration within the AI offering, the typical evolution of customer contracts, and whether any specific diseases dominate the 51,000 high-risk patient identifications in Q1.

Answer

Executive Alexander Dobranowski stated that customer diversification in the AI segment is high, confirming no single customer represents over 20% of AI revenue. He explained that relationships typically expand from small initiatives to larger, recurring formats as ROI is proven. He also clarified that patient identification is spread across rare diseases, chronic diseases, and oncology, with no single area having an outsized focus.

Brian Kinstlinger asked about the average time required for customers to evaluate and adopt Healwell's AI technologies, the key performance indicators (KPIs) used to establish reliability, and for more details on a recent $5.5 million acquisition of a private technology company.

Answer

CEO Alexander Dobranowski explained that the commercial validation process to build trust with clients typically takes one to two months. He emphasized that Healwell's technology modernizes antiquated industry processes, creating urgency for adoption. Regarding the acquisition, he stated it adds a new artificial intelligence capability that strengthens the company's overall technology tool belt.

Brian Kinstlinger asked about the average time required to build trust and achieve adoption for Healwell's AI technologies, the key performance indicators (KPIs) that clinics and BioPharma use to evaluate reliability, and for details on a recent $5.5 million acquisition of a private technology company.

Answer

CEO Dr. Alexander Dobranowski explained that while building deep trust is a long-term process validated by years of work and publications, the commercial validation phase to demonstrate compliance and feasibility with a new partner can take one to two months. He noted that the urgency to modernize antiquated processes like manual chart review accelerates adoption. Regarding the recent acquisition, Dr. Dobranowski stated it adds a new AI capability to the company's 'tool belt' that it did not previously possess.

Brian Kinstlinger asked about customer concentration within the fast-growing AI offering, inquiring about the revenue share of the top customers. He also asked about the evolution of customer relationships, such as how they adopt more algorithms or increase volumes over time, and whether any specific diseases dominate the 51,000 cases of early detection in Q1.

Answer

Executive Alexander Dobranowski stated that customer diversification in the AI segment is high, with no single customer accounting for a material portion (e.g., 20%) of revenue. He explained that customer relationships typically expand over time, moving from small initiatives to larger, recurring contracts as Healwell demonstrates ROI and builds trust. Dobranowski also clarified that while the company focuses on rare disease, chronic disease, cardiovascular, and oncology, no single disease area dominates the early detection cases.

Brian Kinstlinger of Alliance Global Partners inquired about demand from the automotive sector following tariff implementations, changes in the broader customer base since April, and whether economic uncertainty was slowing new logo wins. He also asked for clarification on the adjusted EBITDA breakeven point.

Answer

CEO Richard K. Howe stated that demand from their largest automotive client has actually increased, partly due to vendor consolidation, and that overall customer demand remains strong with no major changes. He noted that while there is talk about tariffs, it hasn't impacted their business yet. CFO Wally Ruiz explained that the adjusted EBITDA breakeven point is now slightly higher, around $26-$27 million in quarterly revenue, due to a new, lower-margin platform campaign.

Brian Kinstlinger inquired about the impact of automotive tariffs on a key anchor customer, the automotive sector's revenue contribution, and any general shifts in customer advertising demand since April. He also asked about the pace of new logo wins amid economic uncertainty and questioned the company's adjusted EBITDA breakeven point, comparing Q1 results to the prior quarter.

Answer

CEO Richard K. Howe stated that demand from their largest automotive client has actually increased, partly due to vendor consolidation, and that general demand from large customers remains stable. He noted 22 new client wins year-to-date. CFO Wally Ruiz addressed the financials, explaining that a new, lower-margin platform campaign impacted Q1 EBITDA, and clarified the new quarterly revenue breakeven point is now slightly higher, around $26 million to $27 million.

Brian Kinstlinger inquired about the impact of automotive tariffs on demand from a new anchor customer, the percentage of revenue from the auto sector, and any recent changes in overall customer demand. He also asked about the pace of new logo wins amid economic uncertainty and questioned the company's adjusted EBITDA breakeven point, noting a sequential decline despite higher revenue.

Answer

CEO Richard Howe responded that demand from their largest automotive client has actually increased, partly due to vendor consolidation, and that general customer demand remains strong. He noted 20 new client wins year-to-date. CFO Wally Ruiz explained the EBITDA variance was due to nonrecurring items and a new, lower-margin but high-dollar platform campaign, placing the new breakeven revenue level around $26-$27 million per quarter.

Brian Kinstlinger inquired about the impact of automotive tariffs on demand from a new anchor customer, changes in the broader customer base since April, the pace of new logo wins amid economic uncertainty, and the company's adjusted EBITDA breakeven point.

Answer

CEO Richard Howe stated that demand from the largest automotive client has actually increased due to vendor consolidation and that new logo wins remain strong. CFO Wally Ruiz clarified that the adjusted EBITDA breakeven point is now slightly higher, around $26-27 million per quarter, due to a new lower-margin platform campaign and some non-recurring items.

Brian Kinstlinger inquired about the progress and 2025 outlook for Inuvo's major automotive and retail clients, their potential to become the largest brand customers, and the strength of the new business development pipeline. He also asked about the drivers behind the 40% increase in average deal size and whether the strong Q1 growth forecast alters the company's typical business seasonality.

Answer

CEO Richard K. Howe confirmed that both the large auto and retail clients saw growth in Q4 and are expected to be the two largest brand clients in 2025. He highlighted the addition of 33 new brands in 2024 and investments in the sales team as drivers for future growth. CFO Wally Ruiz added that while historical seasonality will likely continue with a stronger second half, the pattern may be less pronounced than in previous years.

Brian Kinstlinger asked for an update on a large technology client mentioned in a previous quarter, the performance feedback from key retail and auto clients, and the primary catalysts needed to drive significantly increased adoption of Inuvo's technology. He also inquired about the progress in hiring new salespeople and the overall effectiveness of the company's marketing and advertising efforts over the last year.

Answer

Executive Richard K. Howe clarified that the previously mentioned technology client was likely their largest platform partner and noted new signings in the tech sector. He explained that stronger client relationships and overcoming market aversion to change are the key catalysts for accelerated growth. For sales, Howe described the ideal candidate as having strong, trusted industry relationships and a consultative understanding of the ad tech ecosystem. He also detailed successful marketing initiatives, including attending industry conferences, securing publications in trade magazines, and growing their professional audience on LinkedIn.

Brian Kinstlinger from Alliance Global Partners sought to confirm the SMB segment's volume mix from restaurants and retail and asked about recent trends in transaction sizes. He also requested the anticipated full-year free cash flow and capital deployment priorities.

Answer

CFO Tim O’Leary confirmed that restaurants and retail account for about 40% of SMB *volume*, not overall revenue, and that there have been no material changes in basket sizes beyond normal seasonality. He projected full-year free cash flow to be approximately $80 million or more. Regarding capital deployment, he stated the company will continue to focus on deleveraging while remaining nimble to pursue unique inorganic growth opportunities in the current market.

Brian Kinstlinger from Alliance Global Partners asked about any observed impact from tariffs on the business and how it was handicapped in guidance. He also questioned the reasons for the steady decline in SMB gross margins, the nature and size of the inventory write-off, and the sustainable margin for the sector.

Answer

CEO Thomas Priore explained that tariffs can be a countercyclical benefit, potentially increasing card usage for working capital and driving demand for B2B payable solutions. He clarified that the SMB margin decline is primarily due to the runoff of legacy portfolio purchases, while organic margins are expanding. CFO Tim O’Leary quantified the one-time inventory write-off at $3.5 million for obsolete software licenses and stated that normalizing for this and portfolio runoff, core SMB margins expanded by 120 basis points.

Brian Kinstlinger from Alliance Global Partners questioned the reacceleration in Enterprise segment new enrollments as a potential leading indicator for revenue growth and asked about strategic plans for deleveraging beyond normal cash flow.

Answer

Executive Tim O'Leary attributed strong Enterprise enrollments to consistent organic growth and seasonality, not a fundamental shift. Regarding deleveraging, O'Leary confirmed they are always evaluating opportunities, referencing past actions and the recent preferred equity redemption, but stated nothing is imminent. Executive Thomas Priore added that recent regulatory changes in the credit repair space are bullish for their Enterprise segment, creating a permanent, more attractive revenue opportunity that is lifting results.

Inquired about the pipeline for the corrections vertical compared to the previous year and asked for more detail on the size and potential revenue impact of the data center opportunity.

Answer

Management stated that the corrections pipeline is larger than a year ago, driven by strong U.S. demand for advanced security. The data center opportunity is a significant growth driver within the utility vertical, having contributed substantially to its 30%+ growth in 2024, and is expected to remain a key focus.

Brian Kinstlinger questioned Bitdeer's pricing strategy for its SEALMINERs, the expected tape-out costs for 2025, and whether recent industry developments have impacted conversations about HPC and AI opportunities.

Answer

Head of Capital Markets Jeff LaBerge indicated the A2 is competitively priced at $15/TH to gain market share, while the more efficient A3 will have more flexible pricing. Chief Strategy Officer Haris Basit and CEO Jihan Wu clarified that A2 and A3 tape-out costs are paid, with A4 costs expected in Q3. Basit also confirmed that discussions with potential HPC/AI partners remain positive and unaffected by recent market news.

Brian Kinstlinger of Alliance Global Partners inquired about the pricing strategy for SEALMINERs, the cadence of 2025 tape-out costs, and whether recent AI industry developments have impacted demand for HPC data centers.

Answer

Jeff LaBerge, Head of Capital Markets, outlined a competitive initial price for the A2 miner with plans for premium pricing on the more efficient A3. Chief Strategy Officer Haris Basit and Chairman and CEO Jihan Wu clarified that A2/A3 tape-out costs are paid, with A4 costs expected in Q3. Haris Basit also confirmed that conversations with potential HPC partners remain positive and unaffected by recent industry news.

Brian Kinstlinger of Alliance Global Partners inquired about the monthly production capacity for the SEALMINER A2, its expected impact on fleet efficiency, and whether another significant one-time R&D expense should be anticipated for the SEALMINER 3 chip.

Answer

Executive Jihan Wu reiterated the public plan for 18 exahash of A2 production and stated that fleet efficiency will improve dramatically from over 35 J/TH to below 20 J/TH in the coming year. He also confirmed that there will be large R&D expenses associated with the SEALMINER 3 chip design, which will be disclosed.

Brian Kinstlinger asked for details on Vislink's MilGov business, including the size of a delayed Middle East order, the diversification of the sales pipeline, and the segment's Q3 revenue contribution. He also inquired about the timing of a recovery in the Live Production business following the Olympics and sought a breakdown of the company's announced $6 million in annualized cost savings.

Answer

CEO Carleton Miller explained that a significant MilGov order in the Middle East was delayed by approximately six months due to regional tensions but is expected to proceed in early 2025. He described the MilGov pipeline as robust, with numerous recent wins and growing opportunities in Europe and Asia. CFO Michael Bond specified that MilGov revenue was $1.8 million in Q3. Regarding Live Production, Miller noted that while quoting is picking up, Q4 is expected to remain sluggish. On cost savings, Bond detailed that the $6 million in annualized savings includes $3.7 million from headcount reductions, about $850,000 from consolidating three production facilities into one, and another $1.1 million in other expense cuts.

Brian Kinstlinger asked about the sustainability of gross margins, the size of the upgrade opportunity for the acquired BMS customer base, and the addressable market and business model for new products like Dragonfly V. He also inquired about the nature of increased sales and marketing spend and the identity of three new OEM partners.

Answer

Executive Carleton Miller explained that a favorable sales mix, particularly in the MilGov sector, supports higher margins. CFO Michael Bond added that as new products with margins in the upper 50s to low 60s replace older ones, overall gross margin is expected to improve. Miller identified the entire former BMS customer base as an upgrade opportunity and noted new products are a 'Trojan horse' to drive recurring software revenue. He clarified that increased spending is primarily on sales personnel and a new SEO initiative, but declined to name the new OEM partners, stating two are in manned aircraft and one is in unmanned aircraft.

Asked about the impact of consolidating to the Clevertouch brand on channel partners and U.S. market share, the reasons for the market downturn and the company's bullish outlook, details on non-compliance with a senior credit agreement, and future trends in pricing pressure and gross margins.

Answer

The company views the brand consolidation as an expansionary move with amicable partner agreements and a smooth transition plan for existing customers. The market downturn is attributed to a post-pandemic spending hangover and longer device lifecycles, with a rebound expected next year. The bullish outlook is based on historical cycles and growth in adjacent markets. Regarding the debt covenant, a waiver for a senior leverage ratio breach is being finalized and is not expected to be an issue. Management anticipates short-to-mid-term pricing pressure but believes they can maintain strong margins long-term through buying leverage and a focus on integrated solutions.

Brian Kinstlinger asked about the impact of consolidating to the Clevertouch brand on channel partnerships, the reasons for U.S. market weakness, the basis for a bullish long-term outlook, the company's debt covenant compliance, and future pricing pressure.

Answer

Executive Dale Strang explained that the brand consolidation is an expansionary move with amicable partner agreements and features to retain existing Mimio users. He attributed market weakness to a post-spending 'hangover' and longer device lifecycles. His bullish outlook is based on historical cycles, partner conversations, and growth in adjacent markets. CFO Gregory Wiggins clarified that while a $4M bridge loan was repaid, the company is finalizing a waiver for a senior leverage ratio covenant breach and does not anticipate issues. Both executives addressed pricing, noting short-term pressure will persist but that Boxlight's buying leverage and focus on integrated solutions will help maintain margins.

Brian Kinstlinger of Alliance Global Partners questioned the shift in market outlook since the prior quarter, the key drivers of the strong gross margin, and the progress on improving the company's balance sheet.

Answer

CEO Dale Strang explained that the market recovery is uneven across geographies, with the U.S. market remaining soft longer than expected. He and CFO Gregory Wiggins attributed the strong 37.7% gross margin to a favorable mix shift towards higher-margin audio products and better-than-anticipated pricing, though they still expect long-term pressure. Regarding the balance sheet, Strang confirmed it is a priority and they are in discussions with partners, but no immediate action is pending.

Brian Kinstlinger inquired about order trends in Q1 and Q2, the company's confidence in its full-year flat revenue guidance, progress on FrontRow product sales, and the timeline for debt refinancing.

Answer

CFO Gregory Wiggins addressed order trends, noting they were consistent with the revenue decline but that the pipeline remains strong, with confidence in the full-year forecast stemming from an expected return to traditional seasonality. CEO Dale Strang detailed the strategy for the FrontRow audio products, which involves a specialized go-to-market approach and leveraging dedicated expertise. Regarding debt, Strang stated that the most active refinancing options being explored are independent of the company's stock price.

Brian Kinstlinger asked about customer reactions to Apollo's recent technological advancements, the competitive landscape for current RFQs, and the potential impact of US administrative changes on the company's strategy.

Answer

Executive Matthew Fisch reported a very positive OEM response to Apollo's capabilities, highlighting how its high-resolution, wide field-of-view data stream simplifies software integration. He anticipates sourcing decisions will accelerate in 2025. Fisch also emphasized their cost advantage, stemming from their partnership with Tier 1 supplier LITEON. He stated that the company's strategy is not impacted by potential tariff changes or shifts in vehicle powertrain technology.

Brian Kinstlinger asked about customer reactions to Apollo's recent performance milestones, the expected timing for RFQ decisions, the competitive landscape, and the potential impact of US political changes on the company's strategy.

Answer

Executive Matthew Fisch explained that customer response to Apollo's performance has been very positive, with sourcing decisions from their active RFQs expected in 2025. Fisch highlighted that Apollo's key advantage is reducing software integration friction for OEMs. He also noted their partnership with Tier 1 supplier LITEON provides a significant cost advantage. Finally, he stated that potential US tariff changes or shifts in vehicle powertrain technology do not alter the company's current strategy.

Brian Kinstlinger asked for a quantification of revenue from small business contracts in the quarter and the potential future impact of contracts moving to small business set-asides, including CMOP. He also requested the total value of outstanding proposals and an update on the progress of increasing proposal submission activity.

Answer

CFO Kathryn M. Johnbull characterized the current revenue from small business contracts as immaterial, agreeing it was less than 5%. Executive Zachary C. Parker acknowledged a future risk of contract erosion due to a government-wide push for small business set-asides but expressed confidence in offsetting this with new wins from a robust pipeline. Parker did not provide a dollar value for the pipeline but noted "north of 2 dozen" material opportunities and highlighted significant investments and improvements in the company's business development process and capabilities.

Sought clarification on the path to profitability, the revenue outlook timeline, and the specific reasons for the weak Q2 guidance despite the resolution of a Q1 shipping delay.

Answer

The company clarified their goal is adjusted cash flow breakeven by the September quarter, not profitability. They confirmed the revenue outlook (flat for the rest of fiscal '24, growth in H1 fiscal '25). The weak Q2 guidance is attributed not just to torpedo programs but also the continued revenue decline from the Budd Lake site.

Questioned the identity of the three high-confidence contracts expected to offset the lost TAIMU revenue and asked about their backlog status.

Answer

One contract is the Mark 48 torpedo program, for which production is set to double. The other two were not disclosed for competitive reasons but are for existing products. None of the orders are officially booked yet, but the company has been notified by the Navy about the Mark 48 ramp and expects the order soon.

Brian Kinstlinger of Alliance Global Partners inquired about the impact of recent cost-cutting measures on the ability to run MARKET.live festivals and acquire customers for both the MARKET.live and SaaS businesses. He also asked for the expected timeline for MARKET.live revenue to scale, the leading indicators for that growth, and details on SaaS client churn and enterprise customer counts.

Answer

CEO Rory Cutaia stated that the cost cuts would not impact the schedule of 250+ planned MARKET.live events but acknowledged that a larger marketing budget would accelerate vendor and shopper acquisition. He noted the creator program is expected to drive growth. For the SaaS business, he explained the pipeline remains strong but conceded a larger marketing spend would generate more leads. Regarding SaaS churn, Cutaia clarified the company has a 92% retention rate and is moving clients to a flat-rate pricing model to stabilize revenue. Interim CFO Salman Khan added that Gross Merchandise Value (GMV) would be a key scaling indicator for MARKET.live, which they expect to report on starting in Q2 2023.