Samuel McColgan's questions to Vislink Technologies Inc (VISL) leadership • Q2 2024
Question
Samuel McColgan asked about Vislink's strategy for achieving cash flow neutrality, the specific drivers behind increased R&D spending on its Drone C2 platform, and the strategic implications of securing NATO Stock Numbers for its AVDS products.
Answer
Executive Carleton Miller stated that the path to cash flow neutrality involves operating leverage from covering fixed costs, revenue growth, and significant operational efficiencies expected from a new ERP system. He clarified that the increased R&D spending is to build a broader Drone C2 platform to manage multiple unmanned systems, opening a larger market. Regarding the NATO Stock Numbers (NSNs), Miller explained they streamline and accelerate the procurement process with all 63 NATO partner nations. CFO Michael Bond added that Q2 saw one-time costs for talent acquisition and ERP implementation that are not expected to recur, and that the new ERP system will drive future cost benefits and operational efficiencies.