Good afternoon, ladies and gentlemen, and welcome to today's Rekor Systems Inc. conference call. My name is Alicia, and I will be your coordinator for today. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. Should you require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference call is being recorded for replay purposes. Before we start, I want to read you the company's abbreviated safe harbor statement. I want to remind you that statements made in this conference call concerning future revenues, results of operations, financial position, markets, economic conditions, product and product releases, partnerships, and any other statements that may be construed as a prediction of future performance or events are forward-looking statements. Such statements can involve known and unknown risks, uncertainties, and other factors, which may cause actual results to differ materially from those expressed or implied by such statements. We ask that you refer to the full disclaimers in our earnings release. You should also review a description of the risk factors contained in our annual and quarterly filings with the SEC. Non-GAAP results will also be discussed on the call. The company believes the presentation of non-GAAP information provides useful supplementary data concerning the company's ongoing operations and is provided for informational purposes only. I now would like to turn the presentation over to Mr. Robert Berman, CEO and Chair of Rekor Systems Board of Directors. Hi, everyone. Thank you for joining us. We really appreciate your interest in us and the support so many of you have given us over the past year. Before we begin our discussion, I just want to mention a recent change we made in the scheduled date for our planned Investor Day. Originally, we announced that our investor conference would coincide with the date of our annual meeting because we thought it would be convenient to take advantage of the facilities that we had reserved for the annual meeting at Nasdaq's headquarters in New York. But with a number of things that are moving forward at Rekor, we thought the timing for the Investor Day should be moved back a bit. As a result of the date change, we've decided to include some of the narrative on the investment thesis for Rekor in today's presentation. Before I turn the call over to Eyal, I'd like to take some time to tell you why I believe so strongly in what we're doing and in Rekor itself. For some of you, things may appear as if they aren't happening fast enough. Let me tell you, when you consider all the demands of working with government, progress is happening and at lightning speed. Having spent much of my career in businesses regulated by both state and federal governmental agencies, I can say that we've been well received and making progress at a rate that is much faster than one could expect, and certainly nothing like I've ever experienced. I wish I could share all of what we're working towards with you. This just isn't possible for many reasons, from disclosure rules, procurement requirements, and frankly, our need to be careful to maintain our first-mover status and limit the efforts of our competitors to copy us or pretend to be us. But there is a sea change coming, driven by a technology refresh that's needed in a massive global industry, an industry that has had its last tech refresh over 30 years ago. As you'll hear from David today, there have been many technological advances that gave Rekor the ability to build the platforms we have. Our tech is best in breed and adoption is happening. The first wave of this refresh is on the horizon, and we can see it. I can say that we're in serious discussions and negotiations with multiple governmental agencies, and in many cases, we find that we are alone at the table. Our 2023 results are pretty damn good for a young company, judiciously managing its capitalization and accomplishing all that we have in such a short timeframe. The first wave has already hit for sure, but I firmly believe there is a tsunami on the horizon. Many of you call and reach out and offer helpful suggestions or to suggest the company just does not communicate as much as it should. I'm sorry some of you feel this way and that, and think that things just haven't happened fast enough. But I'm confident that in 2024 is going to be a year where Rekor breaks out, and I hope you all get to enjoy the benefit of what's ahead. So let me now turn the call over to Eyal. Thank you, Robert. Robert will be back shortly with our President and COO, David Desharnais, to give you some insight into the future. But first, I want to discuss Rekor Systems' year-end results for the period ending December 31, 2023. 2023 has been a landmark year for Rekor, marked by outstanding financial performance and strategic growth. We are thrilled to report another significant uplift in our top line, with a 75% increase in annual revenue and a 21% rise over the preceding quarter revenue. The fourth quarter was particularly notable, with revenue reaching $11.1 million. This represents a substantial increase over both the prior year and the preceding quarters. Our total revenue for the year stood at $34.9 million, even though we also focused on reducing our operational cash usage. Our Adjusted gross margin improved markedly to 59.8%, showcasing the impact of our technological advancement and operational efficiency, as well as the synergies achieved as we integrated the acquisition of STS. These improvements enable us to significantly reduce our operating loss from $50.9 million in 2022, without goodwill impairments, to $42.1 million in 2023. In addition, we saw a continued reduction of losses in Adjusted EBITDA throughout the year, a testament to our sustained growth, momentum, and operational discipline. The year was highlighted by executing contract worth of $49.1 million, a substantial increase from the previous year, with our remaining performance obligation at year-end, standing at $26.4 million, ensuring a continued revenue stream. 2023 was also characterized by successful equity and debt transactions that enhanced our liquidity. In January 2023, we completed a significant transaction involving senior secured notes of $12.5 million, led by our CEO, Robert Berman, alongside other new and existing investors. These notes were fully redeemed in February 2024, with part of the redemption price paid in common stock at a conversion rate of $2.5 per share. In March 2023, we also completed a registered direct offering for $10 million. In July, a warrant holder exercised warrants, resulting in approximately $11 million cash proceeds. In December 2023, we also closed on the sale of $15 million of our Series A Prime Revenue Sharing Notes. This unique structure develops a financing mechanism for us that unlocks the value of the strong revenue stream that our contracts provide for scaling our business. We expect to issue additional series of notes under the same structure when required, as we sign more long-term contracts that require capital expenditure investments ahead of monetization. We used a portion of the cash proceeds from the above to acquire All Traffic Data, or ATD, in January 2024. In February 2024, we also completed a follow-on offering with William Blair for a net amount of $26.5 million. We used some of the cash from the offering to redeem the senior secured notes. The strategic financial management contributed to a cash balance of $15.4 million as of December 31, 2023, up from $1.9 million at the end of the previous year. Our working capital position also improved substantially, demonstrating our enhanced financial health and operational efficiency. In closing, 2023 was a year of dynamic growth, strategic achievements, and solid financial health for Rekor as we build for the future of digital infrastructure and roadway intelligence. Looking forward, we continue to be confident in the potential of our technological developments, strategic acquisitions, and the continued support of our investors. Thank you for that. With the overview for 2023, I'm pleased to now give the floor to David for his remarks on our path forward in 2024. David? Thank you, Eyal. Good afternoon and thank you for joining us today. Rekor achieved many critical milestones in 2023, including several new major products and platforms launched to market, multiple new technology patents filed and awarded, a 3x expansion in our production and distribution capacity, and a 30% increase in new customers. As Eyal mentioned, this led to a 75% growth in revenue year-over-year, improved margins, and a significant reduction in operating expenses. Also, in terms of customer acquisition costs versus long-term value, our CAC to LTV ratio rings in at an incredible 7.7 times, more than twice that of which is considered to be a well-run technology company. Despite aggressive moves from well-funded public and private legacy players in the market, Rekor has continued to stand out as the technology leader in the industry for each of our business lines in 2023. The fact is, we consistently outperform all others in the industry when it comes to system capability, performance, and accuracy on any road and in any mode. Now, let me tell you why the conditions are excellent for continued and exceptional growth for Rekor in 2024 and beyond. We are at the nexus of two industry-wide transitions happening right now. The first is the refresh of physical infrastructure with digital infrastructure that is happening right now. A simple visit to the U.S. Department of Transportation website will confirm that after multiple decades of underinvestment, U.S. roadways and infrastructure are in bad shape, rated a C-minus on the official U.S. DOT scorecard. This scorecard also calls out that 65% of existing roadways and 45% of bridges are in a state of serious disrepair and highlights the negative impact that this is having on citizen safety, personal financial losses, and the competitiveness of the U.S. national economy. But roadway infrastructure isn't just about concrete, asphalt, and steel. It also includes all the equipment and tools that we all depend on to identify and count vehicles, shape and manage traffic, monitor and respond to incidents, and operate and plan roadways and communities. Every year, state DOTs must perform millions of federally mandated traffic studies in order to secure funding for roadway operations, maintenance, planning, and projects. These studies are done using a combination of the multiple millions of rubber tubes you see running across streets, antiquated CCTV cameras, inductive loops, piezoelectric sensors, and radar devices that you see embedded in, on, and around our roadways. All of this equipment was installed over the past 70 years in successive and massive waves of technology refresh every 15-20 years. The first wave started in the 1950s and 1960s, with the advent of pneumatic tubes. This was followed by a second wave in the 1970s and 1980s, with in-ground devices like loops and piezos and more. The most recent and massive refresh of technology for roadways happened in the mid-1990s, approximately 30 years ago now, with the introduction of side-firing radar devices that you can see today hanging from poles on the highway at approximately every quarter mile or so. Due to being 30-year-old technology, these radar systems are known to have high failure rates and are raising safety concerns for drivers with multiple radar systems that are built into most cars today. Since these devices are yesterday's tech, they're not able to be updated and can't fully capture and report on the vehicle classes, counts, and speeds now required by the U.S. Department of Transportation and Federal Highway Administration. Like the previous waves of technology, these radar systems are analog and disconnected. They are no longer useful, practical, or safe and are far beyond obsolescence. Between all three previous waves of technology refresh, there are literally millions of these obsolete sensors and devices littered across U.S. roadways today, and it's estimated that up to 2/3s of them don't even work at all. As a result, public safety and transportation agencies that are responsible to deliver safer, smarter, greener roadways and communities are being deprived of necessary and accurate data they need to do their jobs effectively. They're eager for new tools, data, and insights they need to put everything in plain sight and in real time. As the rest of the world modernizes around them, public safety, urban mobility, and transportation management agencies are struggling to keep up with ever-increasing demand and the expectations of their job. You've likely experienced this yourself. Even with new technologies in our cars and smartphones, we face increasing challenges getting from point A to point B predictably. Our news is filled with reports about congested roads, deteriorating road conditions, collapsing bridges, and the concerning fact that vehicles are the primary sources of greenhouse gas emissions, now reaching unprecedented levels and creating a deepening sustainability crisis. Sadly, roadway collisions continue to be the leading cause of death among children and adults under 30. All of this and more can be vastly improved with safer, smarter, and greener roadway infrastructure. Roadway infrastructure is the backbone of public safety, transportation, and competitive and smooth-running economy. Currently, the U.S. is ranked number 13 in the world for infrastructure resiliency and falling further behind. Addressing this gap with urgency has become a categorical imperative for the federal government, and this has kicked off a whole new investment cycle and wave of technology refresh to build the next $1 trillion of infrastructure. In addition to the approximate $250 billion that is already dedicated to roadway infrastructure every year, and funded by the motor fuel excise taxes, the new Bipartisan Infrastructure Law has authorized an additional $326 billion for modernizing and digitizing roadways, another $15 billion for the electrification of transportation, and $tens of billions more for improving public safety and sustainability. This once-in-a-generation level of additional funding is expected to top $1.2 trillion. We expect approximately $350 billion of that new investment applies to the areas that Rekor Systems serves. So, as the first major trend, the transition to digital infrastructure is already well underway, and it is industry wide. This brings me to the second trend, the increasing adoption of AI and other new technologies in what is another industry-wide transition. Simply put, the pace at which our customers are gaining confidence and embracing artificial intelligence, machine learning, computer vision, edge processing, 5G, cloud, and even now generative AI, is accelerating as they move along the S-curve of technology adoption. These are all areas of strength for Rekor. Our software, state-of-the-art NVIDIA GPU-based hardware systems, ability to fuse together and process trillions of data points of mobility data sourced from key partners in the ecosystem, and our multimodal composite AI solution stack extends seamlessly across edge, IoT, Cloud, and on-premises environments. This means our customers can easily deploy Rekor within their existing workflows, datasets, and infrastructure. We've taken a deliberate approach of radical simplification here, making the complex simple so our customers can gain immediate and obvious value. With multiple patents filed and granted already, and others in the works, being the leader in digital infrastructure and roadway intelligence is what we've been pioneering for some time now... and it's working. The combination of these two industry-wide trends is opening up a whole new world of high-value applications that will translate into a very significant business over time. As our 2023 results demonstrate, we're off to a strong start. Looking ahead in 2024, we expect to more strongly verticalize our go-to-market activities, deliver margin improvement and cost leverage as we drive continuous improvements in productivity and efficiency, and grow our expertise in managing product mix and pricing. All new products we launch this year will be built on our existing platforms, so our investment curve can be less steep and the time to profitability should reduce. As our customer base expands, we'll continue to build out our sales, technical support, production, and field distribution infrastructure to ensure that we can meet and exceed customer demand across the U.S. with improvements in technology, automation, and roadside experience and expertise. We're also continuing to build our system capacity, partnering closely with global technology leaders such as NVIDIA and AWS to prepare capacity for multi-billion-dollar scale, all while keeping our current customers and systems operating at the highest levels of performance on a 24 by 7 basis. We'll also continue to enhance the scope of our current product and service offerings. For example, monitoring of greenhouse gas emissions from vehicles, the largest contributor to greenhouse gas of any sort, is the most recent addition to our product and service offerings. We're now working with states and federal government so that the states will be able to prove, through accurate vehicle emission data on the roadways, that they can clear the air, along with multiple other studies they must perform. We believe we stand alone in our ability to deliver this. In summary, we remain confident in our ability to execute on our plan for 2024 and are well-positioned for another year of outstanding growth. I look forward to providing you continued updates and further details on our progress throughout the year ahead. At this point, I will turn the call over to Robert Berman, CEO and Chairman of Rekor, for final remarks and Q&A. Robert? Thank you, David. To sum things up, I want to go back to my opening remarks. This is a once-in-a-lifetime opportunity to participate in a massive technology refresh. It's impossible to control the timing of this date by day or even month by month. I'm certain, however, this will be as clear as it can be this year. Patience is rewarded along with hard work. We'll keep doing this hard work and hope you'll continue your support and find the patience to help us sail this ship into the harbor. I would like to add that management has received nearly a dozen requests to have calls with individual investors after this call. This is just not practical for us to do and would greatly appreciate that you ask your questions here and now, and we'll do our best to answer them for the benefit of all of our shareholders. Thank you. Hello? Operator. Operator, do we have any questions? We have some questions in the queue, operator. I apologize. Can you hear me now? Yes, we can. Yes, we can hear you. I apologize. This is Robert. I apologize. I was prompting for Q&A, but I guess my microphone wasn't working. I apologize for the technical- Let's get, let's get to it. Let's get to it. Let's get to it. What questions do you have? Our first question comes from the line of Louie DiPalma with William Blair. Please proceed with your question. Good afternoon, Robert, Eyal, and David. Hey, how are you? How are you? Robert, you reported a 124% increase in contracts, and David described how transportation modernization appears to be a major federal priority. Are you observing an acceleration in projects funded by the $550 billion IIJA infrastructure bill? And are we still in the early innings here of this modernization project? Yeah, David, let me take that first. And then David can follow up. But I think, there's two pieces here. The first is, you know, the program money from what the government requires state, cities, and other municipalities to do statewide, right? That's program money. And, you know, what we're seeing is an increase in the interest in using our technology to do that, as opposed to the legacy technology. And, David, you can take the second piece with respect to new money. Yeah, David, if you can hear me okay. Yes, we are starting to see money freed up as a result of distributions from the IIJA, which is otherwise known as the Bipartisan Infrastructure Law, or BIL. It's about, I would say about $300 billion has been deployed over 2022, late 2022, and also coming into 2023. And so there's a lot of, I'd say a lot more to go, but the funds are already being released, and we are seeing that states are starting to reap the benefits of that freed up injection of capital. Thanks, David and Can I, can I just add to that? That, you know, that there's, you know, just for, you know, our shareholders on the call here. In the fall of 2023, the administration released its rules on measuring greenhouse gases and setting targets for 2030, and those rules went into effect in early January, I think January 6th, or if I'm not mistaken, it was either 6th or 8th. And they have to set their targets by 2024, and they have to then, you know, show, you know, how they measure those and get to where their targets are by 2030. And I think some of that may be related to the new money, but this is all new. It is very new, right? I mean, it's just the beginning of the year, and they've just set these rules, and they're just starting to operate under them now. Great. Robert and David, you referenced how highways and bridges are in desperate need of improvements, and as it relates to the traffic measurement over the past many decades, antiquated and now obsolete radar and tube systems have been installed. What is the total market opportunity to replace the outdated technologies with your, like, analytics software sensors? David, you want to take a shot at that, or? Yeah. You know, the states, every state has existing spend on roadside devices that they've had deployed for many years, as I mentioned. These are going through a refresh. A state could have anywhere from a few hundred to a few thousand. States like California, obviously much larger, have a lot more devices there. As they are filling out, I'll give you an example, like a piezo sensor or an inductive loop. There's literally, I would say, hundreds and hundreds of thousands of these that are throughout the United States, and they often are ground up as the road gets repaved or moved or anything like that, and/or they just simply fail because they're a mechanical device that you know, the second you put it in the ground, it starts to deteriorate as a mechanical moving thing. So, these will inevitably be replaced as they're failing out, and a lot of them are already failing out. And so, you know, the size of opportunity depends on the types of devices, but it's literally in the $ billions range, and they are long-term contracts. I mean, some of these devices have been installed for 30 years, 40 years, 50 years. And so, the opportunity to kind of get in, be able to deliver unique value, based on our approach using AI, will serve us well, because as... What's different about AI is when it's out there, rather than deteriorate, it actually starts to improve, every single time it sees a new situation, it learns and continues to get better and stronger. So, we believe that, on one dimension, just in a sheer replacement of technology, there's an enormous opportunity there. And that's partially funded from existing spend, that $250 billions of existing spend, and also partially funded by the new injection of capital from the IIJA or the Bipartisan Infrastructure Law. The thing that does not come in hand is that the way that we approach the market and our technology is that, you know, with a single device, we have the ability to monetize on multiple dimensions. As Robert mentioned, things like greenhouse gas emissions. There's really nothing out there today, on the roadside other than, like, hundreds of thousands of dollars that you would spend for a greenhouse gas sniffer, right? There's no way to really do that today, and our technology actually does it today. It's on the same device that we do classification, count, and speed, and other, other studies with. So our ability to monetize on a roadside unit that would be replacing a legacy tech and to continue to future-proof that and expand upon that footprint is large and expanding. Thanks. Robert and David, you described the opportunity in the billions, you grew revenue 71% year-over-year in the fourth quarter, and the team discussed how new products will be built onto your existing platform. So, with this large revenue opportunity and revenue growing so fast, how are you balancing revenue growth with margin expansion? Yep, I'll take it, David. So basically, our revenue, our margins, we anticipate with the technologies we penetrate more and more states and DOTs with our technology. Anticipate the margin actually to go up, as the margin on the technology is higher, you know, than the loops and PS that David described. So, we do anticipate as the increased revenues are always going up and the mix of revenues leaning more toward our technology, that these margins will go up over time. In the short to mid-time period, we will see this improvement in margin as we put more and more our IoT nodes devices roadsides. This answer the question? Yes. You know, let me just add to that. You know, let's be clear, right? So, what we're doing is we're putting IoT nodes roadside, and it's a single system that can have multiple missions, right? So, when we are asked to put a system in to do what's mandated, like count, class, and speed, and we install it, it's out there, it's done. If the state or the municipality decides they want to do, you know, greenhouse gas emissions, we turn it on. If they decide that they want to do weigh in motion or tonnage or origin, destination, we turn it on. We don't have to go back out and touch the device, okay? It's out there, it's connected, it's a singular device, it's future proof. As David mentioned earlier, the legacy technology that we're talking about, which hasn't been refreshed in the last time, 30 years ago, okay? We don't have to go back out to the road and reinstall it and do anything. It's there. We just turn on additional functionality, and it, it serves the, the purpose for their needs. So, the margins go up because you're, you're getting additional fees for the same device, just providing additional functionality. Thanks, Robert. That's, that's really helpful, and I think that helps, everybody on the call understand the, the fixed price, the mostly fixed price nature of your, your product suite. Thank you. Thank you. Our next question comes from the line of Michael Latimore with Northland Capital Markets. Please proceed with your question. Great, thanks. Yeah, and, congrats again on the strong organic growth in the quarter. In terms of the bookings, can you just maybe give a little more detail there? You know, maybe what% of the bookings are in this Discover product area? And then for those Discover wins, are they, mostly expansions, new states? Just a little more color on bookings would be great. You know, Michael, maybe I'll let Eyal take a piece of this, but before we do, I just want to make it clear that as we've always said, we started within our footprint, which was the acquisition of STS and their relationships in the southern states. And, you know, since then, we've added states outside of their footprint where we have no relationship whatsoever. So we're starting to see adoption of this technology by brand new customers that are new to Rekor, and we're new to them. So I think it's fair to say that, you know, this is new. It's, and it's not just our technology that's new, it's the whole concept of AI, you know, connected devices and all these other things going on out there that customers have to get, you know, custom with, and used to and, and whatnot, and it's just all. It's all happening, and it's happening right now. So, Eyal, you want to answer from there? Yeah, yeah. I think we talked about it before as well. The total contract value that we have, close to $50 million, is across all three segments, Michael, and we talked about it before. Yeah, it's leaning more toward the Discover or the Urban Mobility segment that we have, because these are larger contracts for longer periods of time. But we see total contract value, or the booking, as you call them, in our portfolio, is really across all three segments, as we see. And you can see the growth in all three segments in revenues, and that's what we anticipate that this backlog or booking will go up among all three segments and not just one. But the majority of it, you're right, is with the Urban Mobility because the nature of the contract. And Michael, maybe it's important to make note of the fact that, you know, sometimes it's the Discover platform that leads to the customer or Command. But what happens is once they get the technology out there, these three platforms fit hand in glove because it's public safety and it's traffic management and urban mobility. And again, it's the same system that performs all these different functions. So, you know, one leads to another, leads to another, leads to another, right? Yep. Yep, makes sense. And how about in terms of just the deployment resources you have? You know, you obviously had your organic team, and I think you were building that, and then you've added in ATD here, but maybe can you just talk a little bit about how many, I don't know, people you have that can deploy your technology and how many systems they can do per month or something like that?... David, you want? David, do you want to? Yeah, so we've got, with the acquisition of ATD joining us in January, we have upwards of 70, 75, 80, 80 individuals that are in the field that are roadside experts and certified to do the work out there. But I would say that from a deployment perspective, we now have reach across pretty much every state in the U.S., which is a very important element for us. Otherwise, we would have had to build that, you know, office by office. That's the big advantage for us. But we're not limited to our own staff. We've got cases where, you know, we have a third-party integrator that is, you know, is preferred for a state. We can use that. So it's really not limitation in our own services. It's more of a hybrid. You know, we can do it. It can be done through a third-party integrator as well. So it's really not a limitation. But to answer your question, about 75-80 in terms of roadside-certified experts that are out there. Great. Great. And Michael, it's important to note, those are people that understand working roadside, working with DOTs and others that do this stuff every day. You know, as David mentioned, integrators or adding, you know, field techs, frankly, is not rocket science, right? It's more the expertise and the trust that you have with dealing with the agency that knows it's getting done correctly. So there's no problem expanding the labor force if necessary, or using integrators. It was more the expertise that we were concerned about, and that's why adding ATD was so valuable. Yeah, it makes sense. Good. And then just, things may be evolving, so you might not be able to guide on this, but can you give some sense of what the product versus service mix might be for the year? How are you thinking about that? And then also, at what quarterly revenue level you might get to EBITDA breakeven? Well, you know, the product is the service revenue. I know that may sound kind of, you know, like what? But this is not an industry where a technology company just walks in and says, "Hey, we're here. Use our software, and you can do all this stuff that you need to do on the road." So the product and the service, they go hand in glove, right? Without question, I think. So that's an important thing, and that's what makes Rekor unique, right? It's our ability to provide services to customers that want trust with the supplier, that they can maintain existing equipment and continue the flow of existing data while they're transferring over to new systems and getting data a new way, so you can keep them operating. That's a really important component of it. So they, they really do go together, and it's hard to break it out. So I'd say the service and the product are almost one and the same. You know, David, would you agree with that? Yeah. I mean, as we're learning here, the services that we would provide become more and more automated, right? So they almost become productized, you know, through, again, through automation and just being able to simplify and cut down steps, and it just becomes a stamp and repeat. And, you know, typically, you think of a service as something very customized and such. And of course, there's always going to be that element of it as we work with states and cities and municipalities and things that they, you know, particularly trying to get done. But more and more, we see automation coming to play there to automate steps and just make that more productized, so a lot more efficient. On the product side, you know, the ability to make that more of a service as well, is an element that we're very cognizant of and we build for. And when you think of from a technology standpoint, you think of microservices and data services and even things like generative AI or foundation model approaches here, allows us to be very flexible. And just by the sheer nature of an IoT device, it has infinite flexibility to be whatever it needs to be on the roadside. And what I mean by that is you've got a very powerful product, a processor, that sits on the side of the road. It's like a mini supercomputer. And the ability to upload various services that are on there, like, think of it as AI services, maybe greenhouse gas, maybe class, count, and speed. Maybe it's a vehicle identification, maybe it's a way in motion, maybe it's something else. The ability to create a very flexible environment, almost the product starts to be a service. So we're seeing the services become more productized. We're seeing products become more like a service. Just to give you a little bit more color of how we're building and structuring our path forward here. So efficiency is really the name of the game, and being able to have something very flexible and adaptable for the needs of our customers. Got it. So you, you used to break out product versus recurring revenue, and that's—it's just going to be one revenue line going forward? No, there will be two. I guess your question was, what is the mix between the recurring revenue and product and services revenues for the year, right? For the year, and then what do you think it might be going forward? I think, you know, right now it's at the 60% level, and we anticipate this to be the mix, you know, approximately 60%-70% between recurring and product, and services revenue. But it really depends on some point of time sales that we may have. You know, there will be a big order of our hardware and software that will change the mix, but for the long term, we anticipate the recurring revenue to be approximately 70% from our total revenues. Got it. Okay, good. Thank you. Thank you, Mike. Thank you. Our next question comes from the line of Michael Cohen, a private investor. Please proceed with your question. Hi, Robert. Hey, Michael. I have two questions. First of all, I believe, if I'm not mistaken, on the last conference call, you promised us today that you would give us updated guidance on breakeven. So I was hoping that you could give us a sense of when you'd be breakeven in 2024. I think what we said on the last calls, we thought that that would be, you know, between Q1 and Q2, and I don't, I don't think that's changed based on what we see. Okay. My second question is, in the last equity raise you did in February, in your presentation, you put out a revenue number of $85 million for 2024. As a, as an investor, what confidence can you give, give me that that number is attainable? You missed your 2023 guidance. You missed your breakeven guidance in 2023. The market obviously doesn't believe $85 million because you wouldn't be trading at $2 a share. I'm also, if I'm not mistaken, William Blair, in their recent initiation, has $65 million in revenue. So what would you tell the market- Right. to give us confidence that $88.5 million is deliverable in 2024? I think, Michael, that, you know, with any young company, okay, that has done what we've done in a few short years to grow the way we've grown, to put the products in the market that we have, you know, I would say that, look, I'm proud of the team that's gotten us to where we are. Again, I think it's been a remarkable year. When you're dealing with government at state and federal level, they don't operate on the same calendars that, you know, the private sector does, and it's hard to pin, okay, to a specific date. But do I believe that we're gonna get to that $85 million number this year? I do. Okay. I can't say that it won't be lumpy along the way, but I think we get there based on what we know, what we're discussing. I think I said in my remarks that, you know, we're, we have a lot of stuff going on, because of procurement laws and other things, you know, we're just not at liberty to talk about stuff because, you know, you can be BBQed in a procurement based on making the wrong call to the wrong individual at the wrong time, right? So we think we get there, and we think that number is very realistic, and it's possible it could be higher. It's possible it could be a little bit lower, but it's not impossible that we get there based on, you know, what we've done in the last few years, at all, based on all the discussions that we have going on. Okay. Thank you very much. Thank you. Thank you. Our next question comes from the line of David Hargreaves, a private investor. Please proceed with your question. First of all, congratulations on the progress you guys have made, and, and thank you for everything you've done to kind of try to keep things on an even keel. There is a fair amount of going concern language, it seems, in the document. Mm-hmm. I'm just wondering what your plans are for addressing that. And thank you. Sure. Keep up the good work. Well, thanks, David, and it's nice to have the compliment. We appreciate it. Look, the going concern is, you know, something that's very dynamic. And as you know, we got into the weeds with the auditors with looking at our pipeline. You know, the accounting rules are very strict, and in looking at what we had and what we showed them, it just didn't meet the requirements or their guidelines. So we were forced to take a haircut on our forecast. But, you know, conversely, you always look to mitigate and say, well, we can cut expenses, right? And when we looked at that, we had difficulty saying that we can cut expenses based on the opportunities that we have in front of us, that are very real, that we're working on every day. And so you have a classic chicken and egg conundrum here, where, you know, we find ourselves in a box. But, you know, we see a path to get through this. It doesn't necessarily need to wait until the end of calendar 2024. It can happen in calendar 2023, and we believe it will, and we're gonna continue to work hard to, you know, to cross that bridge. Can't predict the date, but it's going to happen. So, but, you know, we also respect the accounting rules and how strict they are and how difficult it is to do these things. And sometimes you just don't have choices when you're put in a box, and that's where we were put in. We were put in a box, so I hope that helps answer your question. So just to quickly follow up, if we put aside our accounting hats for a moment, could you talk about your comfort with liquidity and what options you think you might have to raise additional liquidity if needed? And thank you. That's my last question. Well, you know, so with respect to raising capital, that is not something the accounting rules allow us to even look at, right? But you know, we feel comfortable with where we are with the cash on our balance sheet and the business that we have, that we can make it through this. Our plan was always to do exactly what we did, okay? It was to construct and issue those Prime Revenue Sharing Notes... and to establish that as a program to grow the contract base and to continue to issue those. And that's what we're gonna continue to work towards. And that's how we hope to, you know, fund implementations on contracts that are pay per data with states that have large contracts. And, you know, we feel good about it. But again, it's a tough situation when you have this chicken and egg situation with, you know, rules that are so black and white that you can't move right or you can't move left, right? So, we feel good about where we are, and we think we can make it through this, and we really don't have any concern about it. Okay, thank you very much, and good luck. Thank you. Yep, thank you. Thank you. Our next question comes from the line of Ray Yuko, that is a private investor. Please proceed with your question. Yes, hi. Thanks for taking my call. I had just two questions. First one is, can you touch on the technology being used for train yards, seaports, if it's capable? And my second question would be: Can we expect any overseas contracts or partnerships? Thank you. Well, thank you. David, you wanna touch on those two questions? Yes. Yeah, no problem. Yeah, yes, I would say what our specialty is, is really object identification. And we do that through multiple different ways. There's no reason why the technology cannot be applied to really any object moving in a frame or on a roadway, whether that's in a shipyard, you know, a transit, a train, a rail, whatever it may be. Our focus, though, the technology, it's not a limitation in technology, it's a limitation in where we choose to focus our finite resources as we go to market. And so we haven't focused on driving growth in those sort of planes and trains. We've been focused on automobiles. If you think of planes, trains, and automobiles. But definitely, as we look forward, there's no reason why the tech can't apply there. It's just a matter of focus on where we see the money available now. I think the infrastructure bill or the Bipartisan Infrastructure Law will provide additional funding there. But again, it's something that you have to be very vertically focused on in order to win the confidence of the customer set. And our expertise is really roadway and not ports and airports as it may be. Does that help give you some thoughts around that? Yes, it does. And the other question I mentioned was any contracts or partnerships expected overseas? Boy, I'll tell you, focusing here on the U.S. has really been primary for us. We're always open to that, but it goes back to where we wanna make sure we put the most wood behind the arrow. Robert, I don't know if you have any comments on that, but I would say right now we're really focused. I think. Look, I think it's a fair question. So, if you look at just the federal mandate for count, class, and speed, which is how every government probably in any developed nation around the world funds the roadways, right? They use something similar. So, what we do here could be done elsewhere, but the market is just so massive here, we've not had to, you know, even think about that because we're focused on what's in our backyard. And, you know, should the right opportunity come, then of course we'd look at it. But right now, I think we've got enough potential growth ahead here that we don't need to think about that, but we wouldn't foreclose the opportunity either, so. Okay, that's all I have. Thank you much. Appreciate it. Thank you. Thank you. Thank you. Thank you. As a reminder, please press star one to ask a question at this time. There are no further questions. I would like to turn the floor back over to Robert Berman for closing comments. Everybody, thank you. Thanks for participating. I know it's getting late, and it's been a long day, and we appreciate all your support. And as I said earlier, you know, we'll continue to do the hard work, but it takes both patience, as well. And, yeah, something's gonna make it. I mean, we've had an amazing few years, and the technology's real. It's being adopted by, you know, entities that only some companies would hope to be able to do business with any of them, right? But we're here, and it's all new, and it's happening now, and it is, as David said, it's a technology refresh. This doesn't happen that often. It happens, you know, once in a lifetime, frankly. You know, we're at the forefront of it, and we're gonna try to maintain the first mover status that we have and, you know, continue to do our best to grow the company and continue onwards and appreciate everybody's support. So, thank you all for the time. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.