Jon Hickman

Jon Hickman requested more details about Byrna's movie project, including its expected release date, working title, and planned distribution channels (e.g., direct to TV or streaming).

Answer

CEO Bryan Ganz stated that the movie is expected to be released later this year, with Byrna's primary interest being the advertising capabilities it provides rather than the film's success. He mentioned plans to leverage Byrna's 1.9 million email subscribers and aim for a small theatrical release (around 400 theaters) but primarily streaming. Byrna has 'behind the scenes' rights to film stars using Byrna, conduct interviews for the movie site, and link to Byrna's website, effectively using it as an advertising platform. He could not share the working title.

Jon Hickman asked for more details about the independent film Byrna is helping to finance, including its expected release date, working title, and distribution strategy (direct to TV or theatrical release).

Answer

CEO Bryan Ganz explained that the movie is expected to come out later in 2026. He clarified that Byrna's primary interest is in the advertising capabilities it provides, specifically the behind-the-scenes rights to film stars using Byrna products and conducting interviews for the movie's website. This strategy aims to drive traffic to the Byrna website. Mr. Ganz mentioned a small theatrical release (around 400 theaters) and streaming services as potential distribution channels, but noted Byrna is not directly involved in those decisions. He could not share the working title.

Jon Hickman asked for an update on Byrna's partnership with Sportsman's Warehouse, including store rollout and shooting lanes. He also inquired about the number of SKUs carried by Sportsman's Warehouse and Byrna's presence in Cabela's.

Answer

CFO Lauri Kearnes and CEO Bryan Ganz confirmed they are on track with Sportsman's Warehouse, noting that shooting pods drive demos and conversion in those stores. Lauri stated that Sportsman's carries most Byrna SKUs, including various launchers, ammo, CO2, and accessories. Lauri clarified that Cabela's is part of Bass Pro, and Byrna went national with Bass Pro Cabela's in October of the previous year.

Jon Hickman asked for details on Byrna Technologies Inc.'s partnership with Sportsman's Warehouse, including rollout status, the impact of shooting lanes, and the number of SKUs carried. He also inquired about Byrna's presence in Cabela's stores.

Answer

CFO Laurilee Kearnes confirmed that Byrna is on track with Sportsman's Warehouse, noting that shooting pods in certain stores significantly drive demos and conversion, though not all stores can accommodate them. She stated that Sportsman's Warehouse carries most of Byrna's product line, including various launchers, ammo, CO2 cartridges, and accessories. Bryan Ganz clarified that Cabela's is part of Bass Pro Shops, and Byrna has been in all Bass Pro Shops Cabela's stores nationally since October of the previous year.

Jon Hickman requested elaboration on the new recurring revenue model for the CL, asking if it was an insurance-like program. He also asked about the impact of non-recurring CL launch costs on future operating expenses and questioned why the Scottsdale retail store was performing so exceptionally well.

Answer

CFO Lauri Kearnes confirmed the initial 'Byrna Care' offering is an insurance-style protection plan. CEO Bryan Ganz added that a more significant, future recurring revenue stream will be a SaaS model based on a chipset in the launcher for smart features. Kearnes stated that while there were one-time launch costs, Q3 OpEx would likely remain steady due to increased marketing spend. Ganz attributed the Scottsdale store's success to its high-traffic location, favorable demographics, and strong sales team, which validates the retail model's potential.

Jon Hickman asked about the MSRP for the new CL launcher compared to existing products, the margin profile of the new 61-caliber ammunition, the available colors for the new launcher, and whether it uses the same CO2 cartridge.

Answer

CFO Lauri Kearnes provided the MSRPs: $549.99 for the new CL, versus $479.99 for the LE and $379.99 for the SD. Executive Bryan Ganz explained that while ammo production costs are similar, Byrna will capture 100% of the 61-caliber ammo sales for the foreseeable future, as it is a proprietary size. He also confirmed the CL will launch in orange and black, with more customizable colors to come, and that it uses the same 8-gram CO2 cartridge as the SD model.

Jon Hickman questioned the operational details of the Sportsman's Warehouse partnership, asking if the store-within-a-store locations would be staffed by Byrna or Sportsman's employees, the build-out cost for these locations, and the range of products they would carry.

Answer

Executive Bryan Ganz clarified that the locations will be staffed by Sportsman's Warehouse employees who receive extensive training from Byrna, which he described as a key benefit of the partnership. He confirmed Byrna will support the locations with personnel for demo days. CFO Lauri Kearnes specified that the build-out cost is minimal for Byrna, at only $7,500 per store, as they are splitting an estimated $15,000 total cost with Sportsman's. Bryan Ganz added that the stores are expected to carry a full representative range of Byrna's products as they will anchor Sportsman's new personal self-defense division.

Jon Hickman asked why other companies attempting to convert Bitcoin sites to HPC/AI are taking so long to secure leases despite high demand. He also inquired about the fate of the Bitcoin mining site at Sandersville once the AI infrastructure is built and operational.

Answer

Chairman and CEO Matt Schultz suggested that the delay for others might stem from the need for specific reference architecture for different chip clusters (Google, AMD, NVIDIA), making a 'build-it-and-they-will-come' mentality challenging if not purpose-built. Chief Business Officer Harry Sudock added that accelerated market demand and tighter power crunch are increasing urgency. Regarding Sandersville, Mr. Schultz explained that ASICs would be migrated to other facilities, and the modular buildings would be repurposed for deployment elsewhere, not mothballed, potentially to sites in Wyoming, Tennessee, or other Georgia locations with available power.

Jon Hickman asked why other Bitcoin miners are taking so long to secure HPC/AI leases despite high demand. He also inquired about the fate of the Bitcoin mining site at Sandersville when it transitions to AI operations.

Answer

Matt Schultz, Chairman and CEO of CleanSpark, suggested that other companies face challenges because hyperscalers require specific reference architectures for clusters, and a 'build-it-and-they-will-come' approach is ineffective if not purpose-built. Gary Vecchiarelli, President and CFO, added that accelerated demand and tighter power crunch create more urgency now. Matt Schultz explained that ASICs from Sandersville would be migrated to other facilities (e.g., Wyoming, Tennessee) that need them, and the modular buildings could be repurposed, not mothballed or written off.

Jon Hickman from Ladenburg Thalmann asked about the current trend in Bitcoin transaction fees as a percentage of the block reward and inquired about the secondary market for older miners as the company upgrades its fleet.

Answer

CFO Gary Vecchiarelli noted that transaction fees have been relatively low, around 1-3% of the block reward, but represent pure upside with no incremental cost. President and CEO Zachary Bradford described the secondary market for older miners as 'very robust,' partly due to tariffs making domestically sourced machines more attractive, and confirmed they consistently extract value from retired assets.

Jon Hickman of Ladenburg Thalmann & Co. Inc. asked if customer pre-buys of screens would pressure future hardware revenue, inquired about the 7-Eleven deployment timeline, and requested an update on the bowling alley customer.

Answer

CEO Rick Mills acknowledged a slight pressure on future hardware revenue from the pre-buys but noted this would be offset by increased services revenue as those screens are installed in subsequent quarters. He confirmed the announced 7-Eleven expansion is a five-year plan. Regarding the bowling alley customer, Mills reported that they are not currently rolling out additional sites, potentially due to funding issues, and no further installations are scheduled.

Jon Hickman from Ladenburg Thalmann sought clarification on the mechanics of the new Fortune 500 B2B partnership, the timeline for the projected $50 million in B2B revenue, the context behind a potential subsidiary sale, and the status of the recent $10 million capital raise for a Bitcoin strategy.

Answer

CEO Rob Ellin described the B2B deal as a white-labeled, "Intel Inside" solution marketed by the partner to its 30 million+ members, with a simple opt-in process. He confirmed the $50 million revenue is a 12-month forecast ramping up in fiscal Q3/Q4. The subsidiary sale comment referred to evaluating inbound strategic interest. The $10 million is for a managed Bitcoin yield treasury strategy, with account setup in progress and a formal announcement imminent.

Jon Hickman inquired about the mechanics of the new Fortune 500 B2B partnership, the timeframe for the projected $50 million in B2B revenue, clarification on a potential sale of a subsidiary, and the status of the $10 million raised for a Bitcoin treasury strategy.

Answer

CEO Robert Ellin described the Fortune 500 deal as a white-label solution where the partner markets the service to its 30 million+ members, who must opt-in. He confirmed the $50 million revenue projection is for a 12-month period, ramping up in fiscal Q3 and Q4. Ellin clarified that the 'sale of a subsidiary' remark refers to exploring strategic options due to inbound interest. Regarding the Bitcoin strategy, he explained the funds are for a managed yield product, and a formal announcement on its deployment is imminent.

Jon Hickman from Ladenburg Thalmann asked for clarification on the mechanics of the new Fortune 500 B2B deal, the timeframe for achieving the projected $50 million in B2B revenue, the context behind mentioning a potential sale of a subsidiary, and the status of the recently announced $10 million Bitcoin investment.

Answer

CEO Rob Ellin explained the Fortune 500 deal is a white-label solution where the partner will market the service to its 30 million+ members, who must opt-in. He confirmed the $50 million B2B revenue target is for a 12-month period, with a significant ramp-up expected in fiscal Q3 and Q4. Ellin clarified that the 'sale of a subsidiary' comment reflects the company's openness to strategic opportunities due to inbound interest. Regarding the crypto investment, he described it as a managed 'Bitcoin yield' treasury strategy, with a formal announcement on the position expected within days.

Jon Hickman focused on the company's financials and strategic positioning. He asked for an explanation for the sequential increase in G&A expenses and questioned whether the growth from new B2B opportunities could fully offset any potential revenue disruption from the evolving Tesla relationship.

Answer

CFO Aaron Sullivan explained that the G&A increase was due to higher stock-based compensation and the timing of audit fees, and he expects the expense to normalize in future quarters. CEO Rob Ellin responded that he views the new B2B deals as an enhancement to the business, not a replacement for the Tesla opportunity, which he described as having 'massive optionality' for future growth.

Jon Hickman of Ladenburg Thalmann inquired about IZEA's M&A strategy and valuation approach, the reasons for the sequential decline in Q2 bookings, and the outlook for operating expenses in future quarters.

Answer

CEO Patrick Venetucci stated that IZEA is actively pursuing strategic M&A but will not overpay, focusing on integration readiness. He and CFO Peter Biere attributed the Q2 bookings decline to a client timing issue, a deliberate shift away from smaller accounts, and macroeconomic pauses. Regarding expenses, Biere indicated Q2 levels are a good baseline, with headroom for growth, while Venetucci emphasized the company's new, permanently lower cost structure is designed for efficient scaling.

The analyst inquired about the company's M&A activity and valuation approach, the reasons for the sequential decline in bookings, the future outlook for operating expenses, and the role of the new VP of Talent Acquisition.

Answer

Management confirmed they are actively but strategically pursuing M&A without overpaying. The bookings decline was attributed to a large client's timing, a deliberate shift away from smaller unprofitable projects, and some macroeconomic uncertainty. Operating expenses are expected to remain stable relative to Q2 levels as the company has lowered its cost structure. No specific revenue guidance was provided, but the outlook is positive. The new talent acquisition VP is a full-time role focused on all types of talent to support future growth.

Jon Hickman inquired about the outlook for gross margins for the remainder of the year, whether cost-cutting measures were complete, the potential impact of economic uncertainty on the sales pipeline, and the current environment for M&A opportunities.

Answer

Chief Financial Officer Peter Biere stated that gross margins are expected to remain stable within a range and that the current cost structure is a good baseline for the year, with any future hiring intended to be supported by top-line growth. Chief Executive Officer Patrick Venetucci added that despite economic uncertainty, IZEA's sales pipeline is growing with higher-quality clients and larger deal sizes. Regarding M&A, he noted that the company is now more actively exploring opportunities after its restructuring and will be disciplined on valuations.

Jon Hickman of Ladenburg Thalmann inquired about the ongoing nature of non-cash foreign exchange losses, the accounting for debt restructuring costs, the potential scale of the anticipated new customer win, and the implied stronger performance in the second half of 2025 based on guidance.

Answer

CFO Lou Ferrero explained the non-cash foreign exchange loss is a reevaluation of intercompany payables tied to currency strength and that the primary P&L impact from debt restructuring is now past. President & CEO Jeff Miller clarified that the new customer pipeline includes prospects of various sizes, with a contract expected in 2025, and confirmed that guidance implies a stronger second half.

Asked for an explanation of the discrepancy between processing volume growth and revenue growth, confirmation of PayFac revenue growth, the combined growth of PayFac and legacy card business, and for more details on the 'Consumer Choice' product.

Answer

The discrepancy between volume and revenue growth is due to some revenue being transaction-based (ACH) while volume growth is measured in dollars. PayFac growth was confirmed at 25%, and combined card growth was 4%. 'Consumer Choice' was described as a unified disbursement platform allowing end-users to select their payment method (card, ACH, check), which helps cross-sell all of Usio's services.

Asked for an updated gross margin target for the Output Solutions division given new equipment and a shift to electronic delivery, and questioned the reason for the sequential decline in overall gross margin from Q2 to Q3.

Answer

The executive stated that the target margin for Output Solutions is now in the mid-20s (24-25%). The sequential decline in overall gross margin was attributed to a change in product mix, specifically within the Prepaid segment, where revenue from large cardholder programs has lower margins compared to higher-margin revenue from card spending.

Jon Hickman of Ladenburg Thalmann & Co. Inc. asked for an updated gross margin target for the Output Solutions division following recent investments. He also questioned the cause of the sequential decline in the company's overall gross margin from Q2 to Q3 2024.

Answer

CEO Louis Hoch projected that the Output Solutions margin could improve to the mid-20s range (24-25%). He attributed the sequential dip in overall gross margin primarily to a shift in product mix, particularly within the Prepaid segment, where different revenue streams carry varied margin profiles.

Jon Hickman of Ladenburg Thalmann requested quantification of the revenue impact from the lost amusement park client and clarification on the recurring portion of the quarter's one-time operating expenses.

Answer

Jerry Uffner, SVP of Card Issuing, stated that the loss of the amusement park client represented approximately $2 million in quarterly revenue. Michael White, SVP & Chief Accounting Officer, clarified that about one-quarter of the increase in one-time operating expenses from Q1 would be recurring going forward.

Jon Hickman asked for an update on the timing for eVTOL aircraft deployment, its impact on route expansion, and the operational status of the Newport, New Jersey heliport.

Answer

CEO Robert Wiesenthal stated that while the timeline is a moving target, he expects eVTOL deployment in late 2025 or early 2026. He emphasized that their quiet, emission-free nature is the key to unlocking new landing zones and routes. Regarding the Newport heliport, he described it as a strategic, low-cost asset held for future optionality, primarily used for charter flights currently, as part of a broader infrastructure strategy.

Jon Hickman asked for a reiteration of the company's Q4 revenue guidance for the passenger segment.

Answer

CEO Rob Wiesenthal repeated the Q4 passenger revenue guidance, stating the company expects approximately $13 million. This figure reflects the discontinuation of the Canadian business, roughly flat year-over-year revenue for 'Jet and Other,' and continued single-digit year-over-year growth in the short-distance business.

Jon Hickman of Ladenburg Thalmann requested guidance on G&A costs, questioned why a bad debt reversal wasn't excluded from adjusted EBITDA, and asked about the profitability and nature of the new platform campaign compared to the agencies and brands business.

Answer

CFO Wally Ruiz projected G&A to be around $1.7 million quarterly going forward, confirming the prior year's figure included a one-time reversal that was not backed out of adjusted EBITDA. CEO Richard K. Howe explained that new platform campaigns have strong demand but start with lower profitability that improves with optimization over 3-6 months. He clarified that agencies and brands campaigns, particularly self-serve, have higher net margins than platform campaigns.

Jon Hickman requested guidance on future G&A costs, referencing a prior-year one-time bad debt reversal. He also sought more detail on the new platform campaign, asking about its profitability profile, whether it could be replicated, and how its margins compare to the Agencies and Brands business.

Answer

CFO Wally Ruiz advised that G&A should run around $1.7 million per quarter going forward, confirming the prior adjustment was a one-time event. CEO Richard Howe explained that demand for such platform campaigns is strong, with a backlog. He noted new campaigns typically start with lower margins that improve with optimization over 3-6 months. He also clarified that Agencies and Brands campaigns, particularly self-serve, have higher net margins than platform campaigns.

Jon Hickman from Ladenburg Thalmann asked for guidance on future G&A expenses following a prior-year one-time item and questioned if a new, lower-margin platform campaign represents a future trend and how its profitability compares to the agencies and brands business.

Answer

CFO Wally Ruiz confirmed the prior-year adjustment was a one-time item and projected quarterly G&A to be around $1.7 million going forward. CEO Richard Howe explained that demand for platform campaigns is strong and that while new campaigns initially have lower margins, they optimize over time. He clarified that agencies and brands campaigns, particularly self-serve, ultimately yield higher net margins.

Jon Hickman requested guidance on future G&A costs, questioned why a prior-year bad debt reversal wasn't excluded from adjusted EBITDA, and asked about the profitability and future potential of the new platform campaign compared to the agencies and brands business.

Answer

CFO Wally Ruiz projected G&A to be around $1.7 million per quarter going forward and confirmed the bad debt reversal was a one-time item not backed out of the prior year's EBITDA. CEO Richard Howe explained that demand for platform campaigns is strong, and while they start less profitable, they improve with optimization. He clarified that agencies and brands campaigns, particularly self-serve, have higher net margins.

Jon Hickman asked for an update on the market momentum and target audience for the new IntentKey self-serve platform. He also questioned how operating expenses are expected to trend in 2025, particularly in light of the company's plan to hire seven new employees.

Answer

CEO Richard K. Howe reported that between six and twelve clients have signed up for the self-serve platform, which is designed for both agencies and brands wishing to manage their own campaigns. CFO Wally Ruiz clarified that operating expenses will increase in 2025, driven by higher compensation costs from the new hires (including engineers and a data scientist) and marketing costs that scale with revenue.

Jon Hickman inquired about the M&A landscape within Inuvo's segment of the ad tech industry, asking whether the company is viewed as a potential acquirer or a target. He also asked if the Board of Directors has discussed the possibility of a reverse stock split to adjust the share count and price.

Answer

Executive Richard K. Howe stated that Inuvo could potentially be both an acquirer and an acquisition target. He noted that while the company's balance sheet presents a limitation for making acquisitions, its disruptive AI technology and patent portfolio make it an attractive target, with ongoing exploratory conversations. Regarding a reverse stock split, Howe confirmed the Board routinely discusses the topic but would only proceed with extreme caution after comprehensive analysis, given the mixed historical outcomes for companies that have pursued one.

Jon Hickman of Ladenburg Thalmann asked for clarification on how Google's planned cookie deprecation differs from current practices, why customers are reluctant to adopt Inuvo's superior technology, and for commentary on future gross margins and the possibility of a $100 million revenue run rate.

Answer

Executive Richard K. Howe explained that Google's change is a browser-level opt-out for tracking, more fundamental than current site-specific consents. He attributed customer reluctance to risk aversion and confusing narratives from competitors. Executive Wally Ruiz confirmed the 84% gross margin and expected a slight increase. Howe clarified that while Inuvo has not guided to a $100M run rate, the company is focused on reaching a $25M quarterly revenue level to achieve free cash flow positivity, noting strong July revenue as a positive indicator.

Jon Hickman from Ladenburg Thalmann & Co. Inc. inquired about the key drivers and sustainability of the patient affordability segment's rapid growth, the strength of the sales pipeline, and the impact of the recent Asembia Summit.

Answer

President and CEO Mark Newcomer highlighted the addition of 14 new programs in Q1, outpacing the prior year, and noted the sales cycle remains efficient at 90-120 days. He expressed confidence that patient affordability revenue will more than double again in 2025, citing a strong pipeline and positive client feedback from the Asembia Summit.

Jon Hickman inquired about the future trajectory of gross margins as the patient affordability segment grows and asked about the company's unique technology and whether it is patented.

Answer

The company expects gross margins could improve by 100-200 basis points year-over-year as the higher-margin patient affordability business grows, while reiterating the current full-year guidance of 54-55%. Their competitive advantage comes from a combination of transparent pricing, unique (but not patented) algorithms and processes that save clients money, and their core competency as a payments company that can handle various electronic payment methods.

Asked for more specific timing on the development of the first 136 megawatts at the Captus site, the timeline for the related financing announcement, and whether to expect future updates on the British Columbia asset deal.

Answer

The executive provided a tentative development timeline, aiming for the first 6 MW by the end of the current year or early next, with the full 136 MW phased in through the end of 2026. He stated that details on the financing would be announced "imminently" and confirmed that the company will provide future updates on the British Columbia project.

Jon Hickman of Ladenburg Thalmann requested more specific details on the development timeline for the first 136 megawatts at the Captus site. He also asked about the expected timing for the financing announcement and whether to anticipate future updates on the British Columbia project.

Answer

CEO Steven Gutterman provided a projected timeline, aiming for the first 6 megawatts by late 2025 or early 2026, followed by 30 megawatts shortly after, and the full 100 megawatts toward the end of 2026. Regarding financing, Gutterman stated that details would be announced 'imminently.' He also confirmed that the company would provide future updates on the British Columbia assets.

Jon Hickman of Ladenburg Thalmann inquired about Gryphon's strategy for its High-Performance Computing (HPC) expansion, recent changes in power costs, the average Bitcoin price for the quarter, and the impact of profit-sharing agreements on mining costs as Bitcoin's price increases. He also sought clarification on the timeline for news regarding the relocation of the company's mining fleet.

Answer

CEO Steven Gutterman clarified that the company is seeking new facilities for its AI/HPC venture rather than converting existing sites. CFO Simeon Salzman explained that the average power cost rose to approximately $0.062-$0.063/kWh from $0.058-$0.059/kWh in the prior quarter, partly due to profit-sharing dynamics. Salzman also provided the quarter's average Bitcoin price of $59,224. Both executives confirmed that the profit-sharing agreement causes costs to rise with the price of Bitcoin, reinforcing their search for lower-cost power alternatives. Gutterman assured that a definitive update on the fleet's relocation would be provided by the end of the year.

Jon Hickman of Ladenburg Thalmann asked for an update on the BEAD program, specifically whether funds were actively being spent and if WISPs were applying for them. He also requested more details on the size and shipping timeline for the company's new military contract.

Answer

CEO Ronald Glibbery explained that BEAD funding is still in its early stages, with a slow and onerous application process, making it more of a 2025-2026 opportunity. He noted that while some WISPs are beginning to explore applications, widespread adoption has not yet occurred. Regarding the military contract, Glibbery described it as highly sensitive but 'material' to the business, with volume shipments anticipated to begin in Q2 2025, driven by urgent demand for stealth communication solutions in active conflicts.

Jon Hickman asked for a revenue breakdown between memory and millimeter wave products, inquired about business seasonality, sought clarification on the BEAD program's funding mechanics and timeline, asked for more details on military applications, and questioned the accounting for recent severance and software license charges.

Answer

CFO James Sullivan provided the revenue breakdown, stating it was approximately 80% memory and 20% millimeter wave. CEO Ronald Glibbery addressed other points, noting no significant seasonality, and explained that the BEAD program's updated guidance is expected in the next 2-3 weeks, which would make funding available this year. He highlighted that the military values millimeter wave for its stealth, unlicensed operation, and limited detection range. Sullivan clarified the severance and software charges were accrued in Q2, with cash payments spread over future quarters.

Jon Hickman of Ladenburg Thalmann asked if Energous was maintaining its full-year 2023 revenue growth guidance and sought confirmation on the approximate Q4 revenue needed to achieve that target.

Answer

Cesar Johnston, an executive, responded that the company's 20% revenue growth target for 2023 is now contingent on the conversion rate of its 31 ongoing POCs into purchase orders during Q4 2023 and into 2024. He affirmed they are still moving forward with the previously stated guidance and will provide a definitive update on the next earnings call.

Jon Hickman of Ladenburg Thalmann & Co. Inc. questioned whether Energous is maintaining its full-year revenue growth guidance and sought to confirm the Q4 revenue needed to achieve it.

Answer

Cesar Johnston, an executive, stated that the 20% revenue growth target for 2023 is now dependent on the conversion rate of the 31 ongoing POCs into purchase orders in Q4 2023 and 2024. He confirmed an update will be provided in the next earnings call and that the original guidance considered the potential growth from these POCs.

Jon Hickman asked if Energous was maintaining its full-year revenue growth guidance for 2023 and sought confirmation on the Q4 revenue needed to achieve that target.

Answer

Cesar Johnston (executive) stated that the 20% year-over-year revenue growth guidance for 2023 now depends on the conversion rate of the 31 active POCs into purchase orders during Q4 2023 and into 2024. He confirmed they are still moving forward with the guidance and will provide a final update on the next earnings call, noting the original guidance did account for POC growth.

Jon Hickman from Ladenburg Thalmann asked for confirmation on whether Energous would maintain its full-year revenue growth guidance for 2023 and questioned the math, suggesting around $400,000 in Q4 revenue would be needed to meet the target.

Answer

Cesar Johnston, an executive at Energous, responded that the company is still moving forward with its previously stated guidance. He clarified that achieving the target is dependent on the conversion rate of the 31 active Proof-of-Concept (POC) trials into purchase orders through Q4 2023 and into 2024, and that a final update will be provided on the next earnings call.

Jon Hickman from Ladenburg Thalmann asked for confirmation on the company's full-year revenue growth guidance and questioned the required Q4 revenue to meet that target.

Answer

Executive Cesar Johnston responded that the previously stated 20% revenue growth target for 2023 is now contingent on the conversion rate of the 31 ongoing POCs into purchase orders during Q4 2023 and into 2024. He affirmed they are proceeding with the guidance and will provide a definitive update on the next earnings call, noting that the initial forecast had accounted for POC growth.

Jon Hickman of Ladenburg Thalmann asked if the customer validation process is becoming easier due to Energous's accumulated experience and whether the company has sufficient manpower to handle a potential doubling of POCs to 40 by the end of the year.

Answer

CEO Cesar Johnston confirmed that the validation process is now significantly easier and faster, with installations sometimes completed within 24 to 48 hours. He affirmed that Energous is prepared to handle a doubling of POCs, attributing this scalability to a focused product strategy and the development of unique internal tools that streamline deployment and installation.

Jon Hickman asked if the customer validation process is becoming easier with increased experience from 20 POCs and whether Energous has the manpower to handle a potential doubling of POCs.

Answer

Executive Cesar Johnston confirmed that the installation and validation process is now significantly faster, sometimes taking only 24-48 hours, due to accumulated experience and superior technology. He also affirmed that Energous is prepared to handle a doubling of POCs, supported by a focused product strategy on its 1-watt and 2-watt systems and the use of unique internal deployment tools.