Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the Alarum Technologies' first quarter of 2024 corporate update conference call. During today's presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be open for questions. If you have a question, please press star, followed by one on your touchtone phone. If you would like to withdraw your question, please press star followed by two. If you're using speaker equipment, please lift the handset before making your selections. This conference is being recorded today, May 21, 2024. Before we get started, I will read a disclaimer about forward-looking statements. This conference call may contain, in addition to historical information, forward-looking statements within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, and other federal securities laws. Forward-looking statements include statements about plans, objectives, goals, strategies, future events or performance, and underlying assumptions, and other statements that are different than historical facts. These forward-looking statements are based on current management expectations and are subject to risks and uncertainties that may result in expectations not being realized and may cause actual outcomes to differ materially from expectations reflected in these forward-looking statements. Potential risks and uncertainties include those discussed under the heading Risk Factors in Alarum's annual report on Form 20-F, filed with the Securities and Exchange Commission on March 15th, two thousand—sorry, March 14th, two thousand and twenty-four, and any subsequent filings with the SEC. Also, its forward-looking statements, whether written or oral, made on behalf of the company, are expressly qualified by these cautionary statements, and such forward-looking statements are subject to risks and uncertainties, and we caution you to not place undue reliance on these. At this time, I'd like to turn the call over to Shachar Daniel, the company's CEO. The floor is yours. Thank you very much, and welcome everyone to Alarum Technologies first quarter of 2024 earnings results conference call. As is customary, with me is Shai Avnit, our Chief Financial Officer. In this call, I would like to provide a brief review of our business operations, summarize our accomplishments, and then turn the call over to Shai, who will briefly discuss the financial results of the first quarter of 2024, before we will open the call to questions. We are extremely proud to present our first quarter results, demonstrating continuous growth and successful execution in every aspect of our business, trends that continue with us into the second quarter. We started 2024 recording strong sales months, resulted in our highest revenues to date. NetNut revenues for the first quarter of 2024 totaled to $8.1 million, reflecting growth of 139% year-over-year compared to the first quarter of 2023. The strong momentum is also demonstrated in our net retention rate, NRR. NRR represents the average growth rate for preceding four quarters compared to the equivalent period a year-over-year of current customers only, without the revenues generated from new customers, but including upsells and cross-sales on one end and churn on the other end. In the first quarter of 2024, our NRR climbed to 1.66. In addition, the first quarter marked the rollout of our previously announced growth engines with the launch of our innovative product, the Website Unblocker, following our initial product, the SERP Scraper API. Already in use by customers, the Website Unblocker achieved several key goals. First, it enabled us to cross-sell new products to our existing customers. Second, its advanced innovation attracts numerous inbound requests from new customers, expanding our customer base. Lastly, we received positive feedback from our customers, which is crucial to our reputation and our ability to deliver top-of-the-line products and solutions. During the first quarter, we announced the launch of our revolutionary AI Data Collector product line. This cutting-edge product line represents a significant leap forward in data collection technology, addressing the challenges of time-intensive collector creation and maintenance that have long plagued businesses across industries. We believe the AI Data Collector product line will be one of our growth engines for the upcoming years. It's an important milestone in NetNut's roadmap towards securing its share of the data collecting market and will disrupt current web data collection methods and allow users to scrape internet data tailored to their specific requirements with an intuitive, no-code interface. The new AI Data Collector will enable users to effortlessly generate data collection within minutes from any source, without the need to invest in developing designated data collectors for each website. Beyond the value to customers seeking large-scale data from multiple sources, the value for the company is significant, as we will have the capacity to automatically develop and create dozens or even hundreds of new scrapers. One of the primary drivers of the data collection market is the resurgence of AI-based solutions. In the past two years, countless new AI products have been introduced and widely accepted. This tool shares a common requirement. In order to deliver solid results. All AI-based products must have access to massive amount of real-time data with minimal errors. As such, we continue to invest in our fast, robust and reliable network, constantly expanding and enhancing its capabilities to meet the increased demand for data by the AI products. Our dedication to expand our business with innovation and strong value propositions resulted in a record quarter with $8.4 million in revenues and adjusted EBITDA of a stunning $3.2 million, growing significantly compared to the first quarter of 2023. In the first quarter, we presented an IFRS net profit of $1.4 million, compared to a net loss in the same period of 2023, and our non-IFRS net profit increased to $2.8 million. The main difference between the two figures is following the sharp rise in the company's share price, we had to book non-cash expenses resulting from the fair value increase of old warrants issued in 2019 and 2020, at the amount of approximately $800,000. Before going further, I would like to turn the call over to Shai to discuss the financials for the quarter in more details. Shai? Thank you, Shachar. As I discuss our first quarter 2024 financial results, I will be making comparisons to the first quarter of 2023, unless otherwise stated. Revenue for Q1 2024 totaled $8.4 million, up approximately 47% over the $5.7 million generated in the first quarter of 2023. The 2024 first quarter revenues were driven by a sharp growth in NetNut's revenues, which more than doubled compared to last year. Despite our strategic decision to scale down the consumer business, that led to a material decrease in CyberKick revenues from $2.3 million in 2023, to only $0.3 million in the first quarter of 2024. Gross profit increased to $6.5 million, up 75% from $3.7 million in the year ago period, driven primarily by increased efficiency of resources in the enterprise business and the scale down strategy of CyberKick operations, all resulting in a reduction in our cost of revenues. This resulted in a gross margin as a percentage of revenue of 78%, compared to 66% only in Q1 2023. Our Q1 2024 operating expenses decreased 6% year-over-year to $4 million, down from $4.2 million in Q1 2023. This improvement was driven primarily by reduced costs in the consumer business, partially offset by increased costs in the enterprise business. I would like to draw your attention to a material non-cash expense within our finance expenses line, which had a significant impact on our IFRS net profit. In the first quarter of 2024, we booked $0.8 million of non-cash expenses resulting from the fair value increase of old warrants issued in 2019 and 2020, due to the recent rise in the company's share price. These warrants, which primarily are out of the money and are expected to expire in 2025, are booked in our balance sheet as a liability that fluctuates up and down based on the company's share price. Following the sharp rise of the share price, the economic value increased, resulting in these non-cash expenses. Also, we accrued in the first quarter of 2024 for NetNut's tax payment for the first time in the amount of $0.4 million. As NetNut became profitable for tax purposes, NetNut is entitled to a low tax percentage of 12% only on its taxable income, compared to a regular 23% tax imposed on companies in Israel, due to its innovative efforts, which entitled NetNut to pay taxes under beneficial tax tracks. We will continue to accrue tax expenses during the year, and first payments of these expenses to the tax authorities are expected throughout the year. As a result of the above, net profit for the first quarter of 2024 was $1.4 million, or $0.02 basic profit per ordinary share, which equals $0.23 basic dollars basic per American Depositary Share, ADS, compared to IFRS net loss of $0.7 million in the first quarter of 2023, or $0.02 dollars basic loss per ordinary share, which are $0.21 dollars basic loss per ADS. Non-IFRS net profit for the quarter was $2.8 million or $0.04 basic profit per ordinary share, which is $0.45 basic profit per ADS, compared to a non-IFRS net loss of $0.1 million in the first quarter of 2023.... practically close to $0 basic loss per ordinary share, or $0.03 basic loss per ADS. As of March 31, 2024, shareholders' equity totaled $17.1 million, or approximately $2.66 per ADS, compared to shareholders' equity of $13.2 million as of December 31, 2023. The increase stems from the 2024 first quarter net profit, as well as warrants and options exercises. As of March 31, 2024, the company's cash and cash equivalent balance totaled $15.1 million, compared to $10.9 million as of December 31, 2023. And lastly, I wanted to touch base on our share count as it stands today. On an outstanding basis, we have around 64.3 million ordinary shares, representing approximately 6.4 million ADSs. On a fully diluted basis, we currently have around 78.2 million shares, or approximately 7.8 million ADSs outstanding. With that, I turn the call back over to Shachar. Thanks, Shai. Alongside our ongoing business activities and our efforts to support our growth, we continuously planning for the future and advancing our roadmap with potential solutions for data analysis and insights. Similar to our latest strategic decisions we've taken in the past two years, that have proven to be very successful, we invest many resources in choosing the right path for us when it comes to the next generation of our data collection solutions and offering. For that end, we established a special in-house committee, which includes Giora Feinmarsser, recently appointed as strategic advisory board member. As a general partner of a leading AI venture capital, Disruptive AI, and the former colonel head of the AI and Data Science Intelligence Unit in the intelligence unit of the Israel Defense Forces, Mr. Feinmarsser brings unparalleled expertise in AI strategy and cyber technology. We are excited about the progress we have made in the last few months in our strategic plans and looking forward to update our investors regarding these plans for the future. All our business plans will keep serving our main goal of presenting solid revenue growth and profitability. Operator, please go ahead. Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please, while we poll for your questions. Our first question has come from the line of Chris Tuttle with Katahdin Asset Management. Please proceed with your questions. Hey, guys. Thanks for taking my questions, another great execution period. A couple quick ones on housekeeping, and then I may circle back. So I understand the adjustment in the finance charges for the warrants. Can you give us what do you expect the kind of run rate number to be on that line, given your cash and whatever interest rate you're getting, if you back out the, you know, the one-off warrant adjustment number? Okay. So first of all, thanks for the compliment, but I'm really sorry. Can you sharpen your question? What is the run rate of what? You know, your line with the finance cost, which was affected by the warrant adjustment. Ah, okay. You are talking about the non-cash expenses that impacted our IFRS net profit? Yes, that's correct. But specifically, if you look at the finance expense line on the profit and loss statement, it was, you know, negative $848,000. What would that be if you did not have the warrant adjustment in, you know, that particular number? I understand. Okay. Shai, you want to take it? Yes, of course. If we would have take it out, and then, you should just subtract around $800,000 from the current figure. So approximately it will be around zero. Okay. No, but the IFRS net profit would be $2.2 million without this, Of course E xpense. This $800,000 would be added back, you know, to our net profit- Yes, I got it. And would become $2.2 million instead of $1.4 million. I see. Okay, and then related to that, given your cash balance, shouldn't you be earning pretty good interest on that to create a positive positive variance there in finance? Shai? Yes, we are creating some interest on our deposits. On the other hand, there are other ingredients that affect the finance expenses or interest line, like Yeah. Okay. Uh, differences- Currency. Currency. Cur-- yes. Yes. Currency differences between, you know, dollars and U.S. dollar and shekel. Also we have some interest expenses relating to our strategic funding that are still on our balance sheet under the liabilities. It is around $1 million, so it still carries some interest. So the combination of all of these is, you know, deducted some of the interest income we had on our deposits. Right. But as long as we continue to increase our cash balances, then in these cases, we do expect to see other than these fluctuations in the warrants, we do expect to see some interest income going forward. Okay. All right, thank you. And then, a couple quick ones here. The tax, your favorable tax rate, does that have a period of time associated with it, in terms of number of years or is it indefinite, your 12% versus 23%? As long as we, you know, meet all the conditions for this beneficial tax track, it is indefinite. These conditions, we do believe that we will continue to meet them. The most important definitions are basically regarding R&D. It's the number of R&D employees, as a percentage of the total employees, and the amount of R&D expenses as a percentage of the revenues. As long as we continue to be innovative and increase our efforts in development, then we don't see any issues to maintain this, to be in this beneficial track and maintain these beneficial tax rates. Okay, excellent. Thank you. Last housekeeping question: can you remind us what is the differential between your, the 64.3 million share count and the 78.2 million fully diluted? What's the delta there, the big part of it anyway? Okay. It's composed of many of two types of warrants. One is warrants to investors from various rounds in the past, and also from the September 2023 round, and the other part is ISOs, just options and RSUs to employees. Okay. And then, the last question, which I think will be of general interest to people, is I'd love to know more about how you're getting your observations on how your customers are responding to some of the new products that you guys are working on, you know, the anti-blocker and, you know, some of your data, some of the advances- Yeah I n your data. You know, and it's, you know, with a, with a net retention rate of 166%, it's, you know, your existing customers are, are clearly, you know, ramping their, you know, their involvement with you. So I'd love to hear more about, you know, what you're observing in terms of your, your customers and your go-to market, and with your current and your new products, and then I'll pass the baton to the next questioner. Okay, thank you very much. So, as I mentioned in my pitch, so this year we launched our major product, which is Website Unblocker. Already in the first day, we had our beta customers that basically got the product in order to be a kind of partners with us in testing the product in its initial stage. And they expressed high level of satisfaction, and most of them convert this kind of testing stage to a production stage and acquired, subscribed to this product. So, we are of course. It's a product in ongoing development. We're developing and improving. We release the first version, and of course, we're about to release every few weeks advanced revisions with more features and capabilities. Of course, some of them are come from the market, from the feedback that we get from our customers, but I'm say happily and proudly, a high level of satisfaction, customers are testing this product versus our competitor products and see, and some KPIs that are significantly better. I will not deep dive now into technical KPIs, but in high level. So, basically, and as I mentioned, we are working around the clock for our next major product, which is our AI scraper or collector. In about a few months, so in the end of this year or early in the beginning of next year, we will release our first version of this AI scraper with all its upsides and advantages, and we look forward also to get an excitement for the market. So basically, we just started with the new product, and of course, our major product, the IPPN, is going very well, as you see, and the growth, the retention rate, the NRR, etc. Hope it answered your question. Thanks very much, guys. Appreciate it. Thank you very much. Appreciate your time. Thank you. Our next questions come from the line of Tal Jacob, with Epsilon Tal. Please proceed with your questions. Hi. First, I want to congratulate you for the recent excellent results. Thank you. Your strategic decisions have played significant role in this success. I have a few questions about the results and the new products that you will launch soon. We see a robust customer base and usage increases from quarter to quarter. However, your current service requires further development and additional functionalities from the customer side, which the AI data collector may reduce. So my first question, how do you foresee the impact of the new AI data collector on your customers, and its potential to expand to your customer base? My second question is, do you observe any demand from the current customer that's willing to adopt the service? Okay, thank you. First of all, again, thank you for the compliments. So just for a second, let's organize the data, okay? I think it's you're a little bit confused about two products, so I'll organize your thoughts. Our current product, major product, which most of our revenues coming from, is our IP Proxy Network. This IP Proxy Network is not related to the AI scraper and to capabilities of the AI scraper to reduce manual work and do everything automatically. Our current product does not require nothing, not nothing from our customers, besides to start to subscribe to our cloud and to start work. What we mentioned is that today, the market of the scrapers, most of the scrapers or all the scrapers that we are aware of, are requiring manual adjustments to websites and data sources from the customer side or from the vendor side, meaning to invest professional services and human hours in order to make the product, more robust and to fit to the market needs. Our product, our planned product, our future product, the AI scraper, and the intelligence capabilities of this product, will come to express by this, that the product itself will be able to adjust itself to almost every website, to the structure of the landing page or the pages, the relevant pages in the website, and also to adjust itself to new versions or revisions that each site is uploading once in a year, two in a year, et cetera. And by this, the main advantage, yes, will be, one, it will be very fast. Customer does not need to wait for professional services. We don't want professional services. We're trying to do everything as automatic as possible without any human being involved. And second, we will have a huge variety of scrapers, which of course will leverage us to much more opportunities versus our customers. Hope it now it make more sense to you. Yeah. Thank you. I just to make it clear, I pointed my question regarding the scrapers. So currently, do you see any demand for the AI Data Collector from these type of customers? No, because, it's not that we see or, or do not see, this AI scraper is in the middle of the development stage. Meaning we didn't start even to approach our customers, or new customers, or current customers. We are not running yet marketing and sales. We have our own timeline, and, as time will come, as I mentioned, in the end of this year, in the beginning of next year, we will start, to organize, as always, with our first beta customers and then, go to the big market and start to push it with marketing and sales activities. I see. Thank you, and good luck with this. My last question is regarding the fact that you are a profitable software as a service company that generate high cash flow. How do you intend to allocate that cash? Okay. So, basically, as I mentioned also in my pitch, besides of pushing our operation and new products and all the financial indicators, alongside, we have some strategic internal committees with some experts that joined us, external, like, advisory board members and others, in order to research and investigate what will be our next generation of data collection, more in the space of data insights and data analysis. Meaning, not only to provide the data or the best data for our customers, but also to analyze the data and to provide insights from this data. So what we think now, that part of our cash-... in the future will be allocated for these offers. It can be by internal development, it can be by kind of M&A, of a full company, or just assets, or a combination of both. So we don't have any specific known target for this cash, and we guess that in the future, we have so many options, and this market is so exciting and so many alternatives with our hundreds of customers, we think that we have a great space to provide the products and technologies, and that will get an immediate demand of satisfied customers that are basically now using our platform and customers and the products. Yeah, I see. First of all, good luck. I understand from your answer that in the short- term, you intend to invest the current cash into new products that will allow the customer analyze the day-to-day collection. No, no. Again, again, again, I do not, I don't have any plan to invest this cash because we are profitable, as you see, even very impressive profitability. And, in order to invest this cash, of course, you know, you cannot invest cash- I meant, I meant internally, internally in development. No. Also, not internally, because in order to invest cash from your bank, the first thing is you need to lose money. Otherwise, you don't need to use this cash. You can use your profits. So basically, we are using our profits now, and to see that after this use of our profits, these are the results. Maybe in the future, you know, we will touch here and there, or we'll do something big, you know, open a new division, make an M&A, something like... But for the short- term, we don't have any further plans to use this cash. Okay, okay. Thank you very much. Good luck. You're welcome. Thank you. Thank you. Our next questions come from the line of Brian Kinstlinger with Alliance Global Partners. Please proceed with your question. Hi, great. Thanks for taking my questions. Nice results. I'm wondering if you guys have an active user account you can provide for the first quarter and how that compared to last year with the continuing operation? I think it's kind of relevant now for the new business. You mean customers count? Yeah. What's the install base? Well, how many customers do you have, and how many did you have a year ago? Okay, so, you know, we have some ways that we are measuring internally our customers base. In some of the measurements, we do not count small customers that are less than something, and in some others, we are measuring. We are now working, by the way, Brian, on some new KPIs that we'll present to the market, maybe in the next quarter, also related to, of course, retention, churn, amount of customers from quarter to quarter. I don't have this formally, so I don't want to mislead now because we are really investigating it, but I can tell you that we almost doubled the amount of customers this quarter comparing to the previous quarter last year. Got it. Okay. Look, I think that customer count would be great in either billings or bookings of some kind on an annual run rate. If you're considering KPIs are two that I would provide. Anyway- Sure. Your, your net retention rate was 1.66. Obviously, that's very high. What's driving this? Is it more volume for collection? Is it new? Is it cross-selling? Which I don't think so, because your new products aren't contributing yet. No, no, it's not cross-selling. Maybe help us understand. Sorry, go on. Okay. So it's both, okay? First of all, it's the churn rate is low. When I'm talking about churn, is not only about lost customers, we measure churn as, you know, most of our customers are working by bandwidth, okay? So they can use less. So it's a kind of a churn, okay? So the churn rate is in a very good place, and we see a significant amount of upsells, not cross-sells, upsells, volumes. Customers, sometimes some of our customers, when they are starting with us, some of our customers are working in parallel with few vendors, for high availability, to reduce risk, to have the to leverage negotiation on pricing, et cetera. Many, many reasons behind. But so there are some of them are starting to work with us in a low volume, testing the product, and when they see the performance and it goes very well because we dramatically improves our infrastructure and its in the every quarter. So they are starting to transfer volume from other vendors to our products, and then you see as the volume is going up every month, and it's basically it's an upsell, yeah? So it's a combination of upsells, meaning volume, as you mentioned, and a great churn rate. Got it. So is it outside the churn, essentially you're saying on performance, they're asking you to collect more... You're delivering more data?... you know, to, or data collection to your customer base, more and more every quarter? Yeah. Yeah. Okay. And then we've never really discussed this. Maybe you could touch on which industries are you seeing the most demand? Technology with AI, financial services, healthcare. Where are the biggest pieces of demand, biggest clusters demand for your products? Okay, so it's ecom, e-commerce always is in a good place. You know, e-commerce is very stable, yeah. Of course, there are periods here and there, but basically, it's a great vertical. As I mentioned in my pitch, we see an increasing demand from all the intelligence businesses that are analyzing data for their, you know, kind of AI companies that are analyzing data for their customers. And, of course, they need to collect the data to stay up to date, to train their models, et cetera. Advertising companies, always also a stable, a stable vertical. In the last few months, we see an increased demand of people data companies that need data in order to investigate, you know, if it's from HR perspective or other. But I cannot tell you that there is something... You know, it's very changing, which is good for us because then we are not relying only on one vertical. So, we see the trend here and there every quarter, every month, but basically in higher level, these are the major trends that I see. Got it. Great. And then in terms of AI Data Collector, just to make sure I understand, is this an upsell from your IP Proxy, or is this a completely new customer? I'm, I'm just trying to understand if this is new functionality for someone who's already using your product. I couldn't understand from your last answer. Thank you. Okay, I will explain. First of all, it's not an upsell, for sure. Okay? It's not a new feature in our product. We have some plans to consolidate everything, but it's the plans for the next year to do something can be a game changer, but let's keep it aside for a second. Basically, it's not an upsell because customers that are using our IP Proxy Network product, they need it. Some of them are collecting data with scraper, some of them are doing a lot of other things. So it's a cross-sell because basically a customer that is using our IP Proxy product is basically as a high level of interest in data. In order to collect data, proxy is not enough. You need to have scraper, collector, a product that will help you. Now, I gave you the keys to the room, but now you're not—you need to collect from thousands of pages in this or that website, the relevant data for you, and basically to move it from unstructured to structured data by a JSON file, for example, in order to upload it to your algorithm or data analysis product. So these customers, it might be very relevant for them. And of course, new customers that do not need the IP proxy because they don't need so many data, and they are using only scraper or collector. So I see it here and there, but for your question, it's not a new feature or a nature by nature upsell or for sure, not upsell. It's a cross-sell. Okay. And then in terms of the unblocker, last quarter, you said that would be out of beta in the third quarter, I think. Is it? I'm trying to understand too, from the press release in your discussion, is it readily available for sale now, or is it still- Yeah, yeah At the end of the year? Readily for sale. Wherever... Yes, from the first week, one or two days after we launched, let's call it the general availability version. Okay, the G- the GA, the project, the production version, we successfully already engaged with a few customers that they waited for this product, and we get an amazing feedbacks. And it's, you know, we are marketing it now. We did an amazing webinar last month. A lot of customers came from this webinar about this product, and it, it's available. Yeah. Now, in terms of sustaining the growth rate, what do you need in terms of investing in sales and marketing? Do you need more direct sales people, more partners? What does the company have to do as you get larger, right? It's harder to grow as fast sometimes. What do you need to do in order to sustain growth from a sales and marketing standpoint? Okay. So basically, Brian, I will answer you a very, you know, going, answer. You know, we have our own formulas, but basically, we have, you know, the steps, what you need for every step, for every step of revenues or something like this. But if you bring more sales, then you need more marketing, and you need more pre-sales and support and some R&D, in order to support, the highest amount of your customers and revenues. So it's not one thing, and of course, you need to increase your, network, the global coverage, more servers, more IP addresses, et cetera. So it goes all together. So it's one package. You cannot take only one pillar of the company and push it forward, because then you will, you might damage your current customers, the quality of your service, et cetera. So nothing specific. Okay. All right, and lastly, Shai, two questions. The first is, do we assume that 12% tax rate for the foreseeable future anyway? And then second question, I didn't quite understand your answer. What should we expect just on interest on your cash? Should we expect you're gonna generate interest or should we not? I'm a little bit confused. Thanks. Okay. For your first question regarding the tax, yes, we can expect to maintain the beneficial tax rate of 12% as long as the company continues to invest in R&D. If we invest in R&D, then our metrics for the purpose of this beneficial tax track will remain high, and we will be eligible to get these low rates. Yeah. I hope this answers... Okay. Yes. Regarding the second question, so if we take out those non-cash expenses resulting from the warrants, then we have several ingredients within the finance line. The most important one is, of course, interest on deposits. And yes, we do have interest on the deposits. Of course, not on all our cash, because some of the cash is used daily for operations, but on the larger part of it, and we get nice interest on it. On the other side, there are some ingredients that deduct this interest income. It can be, first of all, we still have in our balance sheet the strategic loan we received two years ago. We pay it based on the actual income we get for CyberKick sales, and the other part of it is the, of course, the interest expense we pay on this loan. Okay? So the interest is lower than the revenues we get from the CyberKick part, and it's still, you know, it's only a few thousand-tens of thousands of dollars for a quarter, but it's still, it's being deducted from the interest income. And also, you know, you have bank commissions and other ingredients, so all of it created for us only if, maybe, you know, take it, take or give it, around zero interest income. But going forward, since we do expect or hope to increase our cash balances, and on the other hand, the loan, we, you know, we repay it, so the interest should be lower, the interest expenses should be lower, then we do expect to see some interest income in our PNL. And, but, you know, it's all relatively low figures. You know, it's not millions, it's all, it's, you know, we're talking about tens of thousands of dollars, maybe, $100,000-$200,000 of interest, but, you know, this is the ballpark, it's not revenues. Yeah. Okay. Thanks for your responses. Thank you, Brian. Thank you. Our next questions come from the line of Sean Sweeney with S3 Capital. Please proceed with your questions. Hey, two quick comments, guys. Congratulations on the quarter, and secondly, I think we're all googling up to try to figure out how we can get 12% tax rate in our business also. I think that's a big one. Touching on the IFRS and the non-IFRS, can you touch a little bit more in depth on that? And at the same time, when these warrants expire in 25, will that be a net cash benefit on that quarter? Okay, so I will explain, and Shai, feel free to comment. So I will explain, I will do it shorter, and by your permission, because we discussed about it a few times, but just to make the point very clear. So yes, it's ridiculous, but sometimes you lose something when the share is going up significantly, and the share rise this quarter in about $12 from January first to the end of March. And due to this, the valuation of our old warrants from 2019 and 2020, from different days of the company, of course, their valuations went up because they are now closer. Their exercise price is closer to the share price. And for this, we should... Of course, it's all non-cash, but IFRS is non-cash, so we should book or record an expense of $800,000. So I hope it answers your first question. Your second question is about what happened if the warrants expire next year. So, Shai, want to advise what's the financial situation in this case? First of all, after the expiration, there will be no expenses, neither income. You know, there can be also income. If the share price goes down, then we will create income.... So we do prefer this expense rather than this income. But when they expire, there will be afterwards, of course, no interest at all, no expense, no income. And if there will be exercise, the exercise action does do nothing to our financials. It's only the share price compared to the exercise price, and that's it. And that's all. And then, after also, they will not have any impact anymore, not expenses, not financial expenses. It's like they expired, the same. So, I just want to summarize, if the share price will continue to go up, we'll continue to see more expenses until the warrants will be expired or exercised. It doesn't matter. Yeah. If the share price go down, then we will see income. Does this answer your question? Yes, perfectly. Thank you. Thank you very much. Thank you. Our next question has come from the line of Mark Gomes with Pipeline. Please proceed with your questions. Hey, gentlemen, another great quarter. Wondering how, if the business trends are continuing in this quarter, you made some comments on that last quarter about how January, February were going. And then, you know, any commentary further regarding what we might be able to expect in terms of how pricing can, the new products can affect your revenues as well. Thank you. Okay. So first of all, I do mention also in this time. Later, you can go back to the transcript or the record, you will hear that I said in the beginning of my of the call, I mentioned that this trend of all the financial impact, financially, so KPIs, improvements, revenues, and profitability and others, these positive trends are continuing with us to the second quarter. So basically, according for today, the answer is yes. Second, regarding the new product, so I think I mentioned this a few times, but I will say it again, and 'cause I want this point to be very clear. We just started, you know, we are very happy about it, yes, but our main product is in the high numbers, yeah? And the new products has now need to start, you know, and kick off and get into production and scale mode. So we are pushing them because we have a huge belief also in their innovation. And by the way, they will bring us more customers also to our current product. But a significant impact on the revenues from this product, I don't see this year. Again, if we were $4 million-$5 million dollar company annual revenue, I would say yes, but due to the fact that you see that we are on a run rate, you know, if you take this 8.4 and 4 times, so 4 times, so to make an annual run rate, so a significant impact on this run rate, we are not there yet. Great. Thanks again. You're welcome. Thank you. We have reached the end of our question and answer session. I would now like to turn the floor back over to Shachar Daniel for closing remarks. Okay, so, thanks, everybody, for joining the call and being part of our journey, and we look forward to continue to update you on our progress. Thank you very much. Thank you. This does conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.