Good evening, investors from Mitvirtual. We appreciate your participation in today's virtual event. Up next, we are pleased to introduce SuperCom Limited. If you would like to ask a question during the webcast, you may drop them into the chat box button on the left side of your screen. Please type your question into the box and click "Send" to submit it. At this time, it is my pleasure to hand over the session to Ordan Trabelsi, President and CEO at SuperCom Limited, who will lead the presentation. Sir, the floor is yours. Okay, does everybody see this now? Yes. Okay, great. Let's start. Thank you, everyone, for joining our investor presentation this morning at the conference. I apologize once again for the delays this morning. I had some unexpected issues. My name is Ordan Trabelsi, and I'm CEO of SuperCom. I started in this role four years ago, and beforehand, I was for eight years the President of America of the company. Adjusting the screen size, so everyone can see this clearly. Screen. Okay, great. Safe harbor statement. About SuperCom. SuperCom, we've been around since 1988, and we're a global provider of electronic security solutions to governments worldwide, with our current focus on offender electronic monitoring services. That means ankle bracelets for tracking offenders. We've been doing this over the past, say, five to eight years, and our presence in the market has been growing more and more. We'll see that soon. Our ticker is SPCB. Over the last three years, since I entered the role, we had a CAGR of roughly 31%. We put over $45 million into R&D. We reached EBITDA of $7 million trailing 12 months for Q1. We run seven national domestic violence projects globally, as well as 15 national electronic monitoring projects globally as well. We have a strong track record with many government customers, 120 patents roughly. Over the last year or so, we've had rapid U.S. expansion. We've signed over 30 different contracts in the U.S., which builds on top of all our work in Europe. Our mission is to revolutionize public safety worldwide with innovative electronic monitoring technologies and complementary services. We're going to see for a second how we do this. First, let's understand the problem a little bit better. The worldwide challenges of criminal justice are plenty. First of all, you have high recidivism rates, then prison overcrowding, excessive costs, and all this leads at the end to unsafe communities. In the U.S., the recidivism rate is around 75%. That means that 75% of prisoners in the U.S. are rearrested within five years of them being released from prison. It's a very high number, and it leads to the highest prison population in the world, whereas in the U.S., over 0.5% of the population is behind bars. Much higher than other countries that you see around the world, like Belgium, Italy, Sweden. Still, in the U.S. and many of these other countries, there's prison overcrowding. In the U.S., you have 103%. That means that at any given time, there's not enough beds for all the people in the prison. They're sharing beds. They're fighting on resources. They're sleeping in turns. That creates more conflict and more problems in the prisons. The governments are continuously looking for alternatives to incarceration. Also, look at house arrests, for example, which is what we do. The costs of running a person in a prison per year are $36,500, while in house arrest, they're $2,900. You save roughly 90% per person. If you look at $80 billion spent annually on operating prisons, you would save over $70 billion if you move people in house arrest. When someone's in house arrest, not just saving costs, you're also saving the ability for someone to do something proactive and productive in their life. They can raise their kids. They can help their parents. They can learn and study. They can work remotely. It's a much more effective contributor to society once someone's in house arrest. Now, because of all these, the excessive costs and alternatives and the improvements, we see the market is growing consistently. We expect to reach $2.3 billion in 2028 with a continuous CAGR of between 7% and 13%. We as a company have been growing two to three times that. We've been doing very well in the industry. You see over 10 players in a highly barriered market. People can't answer if they haven't been doing this for five to ten years. I just showed exactly that kind of reference to even be able to compete on any of these bids. Just one second, please. Apologies. You have to be able to be doing this for five to ten years to compete. If someone tries to come into the market brand new, then they have a little bit of a challenge and won't meet the references and the requirements for bidding on the RFP. I apologize for my voice. I've just been a little sick the last few days. Hope you can still hear me clearly. This is our technology, the PureSecurity Suite. We invested over $45 million into this. We developed our own proprietary securities technology. We have our ankle bracelets. We have our house units. We have our phones that are locked down with Knox. We have our software on the cloud. This together creates the PureSecurity Suite and supports a wide array of programs: house arrest, GPS monitoring, domestic violence, inmate monitoring, and so forth. Our solutions create positive social impact and improve public safety around the world. The number that we talked about before, 75%, that has been reduced to 35% in areas in the world where they effectively deploy electronic monitoring. Essentially, we're aiding to eradicate domestic violence with our PureProtect solution. It's a unique domestic violence solution that if somebody hits their wife and the wife calls the police, for example, in Romania, the police will immediately put a bracelet on the guy's leg, a small ankle bracelet that you don't have to charge for a year. All he has to do is not come close to her. If he comes close to the wife, her phone will alert and also the police will get an alert. Essentially, we're enforcing restraining orders and protecting victims of domestic violence. We've been doing this for years. It's had seven national domestic violence programs. One of them is very large in Romania, $15,000 offenders, and at least hundreds of thousands of individuals being protected. The $15,000 is replaced every two to four weeks, we replace some new victims to protect more people. The program is for six years. Our technology in Europe, we had a robust competitive edge because of the features, and that led to over 65% win rate in the tenders in Europe. Out of 10 players, we alone won more than the other nine put together. When we look at the European market, we had superiority in terms of longer battery life. Usually, the bracelet runs for a day or two. Our battery runs for up to a year. It's ultra lightweight. We have next-gen location tech. We can track people on subways. We can track people within buildings. We can track underneath a car when they're driving and their foot is underneath the engine. There are problems for other vendors. We can track within cities. We have multiple methods of biometric information, video calls, two-way communication, and domestic violence solution. This together with our services offers a unique value proposition that helps us win more and more of these projects. That's how we displace incumbents in many countries in Europe. You can see our track record or some of the track record in Europe. We started... It's a ladder you have to climb up. You don't start with the largest projects right away. Years ago, we started with Lithuania and Latvia. There were roughly $100,000 projects. Denmark was a little larger and Canada was larger, even though that's not part of Europe. Finland, $3.6 million; Sweden, $7 million; and Romania, $33 million. There are still many other opportunities in Europe that we've been bidding on. Some of them are very large in size, and we hope to announce those wins as well. Our competitive stance in Europe is doing very well. It's important to know that when we win these projects, we're displacing incumbents. In Sweden, there's an incumbent there for 24 years, and we displaced them. In Finland, there's an incumbent that we displaced. In Israel, we just won the national project with the prisons for all electronic monitoring in the country, and we displaced as well a 20-year local incumbent. What's interesting is when you expand into one region, you put your foot in the door, you have opportunities to win more and more projects. These programs are very sticky. For example, in Sweden, we entered with the National Ministry of Justice program, then we won the Swedish Police program, and then we won the Swedish Juvenile program. Now there's another Swedish program coming up for competition. In Finland, we started with one program, and then we added a domestic violence program. In Croatia, we did the first program they ever had. In Romania, we did the first program they ever had. In Israel, we won a program that covers all the EM programs in Israel. They started with up to 1,500 offenders, and now they're talking about passing laws and guidelines to increase that number by at least twofold. That will come to us by the rules of the contract, most likely, because we are doing all the EM programs in the country. Once you get in, it's very sticky. These contracts, as I said before, Sweden had the same vendor for 24 years. We've been in Latvia for 10 years. Israel had the same vendor for 20 years. Once you're in there, you usually have it for a very long period of time with recurring revenues attached. Now, let's talk about the U.S. The industry in the U.S. is roughly six times the size of Europe, which is very exciting. Also, the characteristics of the industry make it very exciting because it's all recurring revenue. It's all you get paid per unit per day. Everything runs on the cloud on one system. You don't have dispersed systems in different data centers. Everything is centralized. Everything's in English. We don't have to have local partners that take 20% or 30% for translation and for working with the local government. Essentially, we're very excited about this market. It's hard to bring technology that's the right fit for the market. The market is, you know, there are other vendors there that are always trying. We came in roughly last year and have brought a product, the PureOne, for the U.S. market that's a great fit. That's a great fit. With that, we signed nine to ten resellers, value-added resellers, and we also signed over 20 direct contracts, so in total, over 30 contracts in the U.S. market. We're entering many new states. We also have a strong presence in California because of an acquisition that we did in 2016. Since we acquired that company, they've been in California since 1991. After we acquired them, they won $35 million of new contracts. Beyond that, we had significant cost synergies. That's why we think that acquisitions such as this, you know, value-added resellers in various regions in the U.S. will help us increase our presence and could be part of our, you know, growth strategy in the coming years. Our general strategy is to win large-scale contracts in Europe, expand our U.S. footprint by entering states through the direct bids and partnerships, acquire key service providers to strengthen the market presence, enhance proactive sales efforts to streamline sales cycles. Here we're talking about growing our sales, our sales teams. In the past, we've only had a very small team. Now it's been growing. Acquisition is what we talked about, bringing more value-added resellers in locations in the U.S. where they have brick-and-mortar location and people could come in and bid the bracelet put on them. They offer services and they can aggregate many different counties that don't have the technology savviness to run a program themselves. We're continuously innovating now, unlocking new opportunities in the market such as domestic violence solutions. Long-term government projects, as I said, the projects are very sticky. The bid could be up to 3 to 24 months. That's in Europe. In the U.S., it's much faster. The deployment takes some time. Then you're in a software as a service type model where you're just leasing hardware, but the rest is software as a service. Very high margins. It could reach 70% or more, especially in the U.S. On average, you're taking services technology at $2,900 per year per offender. There are interesting revenue trends in our company. We shifted from a legacy business of identification, passports, ID cards, driver's licenses in Africa and South America to public safety, which is electronic monitoring in the U.S. and Europe. That created some declines in revenues in recent years, from 2015 to the past 10 years. What's been happening underneath the surface is essentially the old business has been declining and the new business has been growing. We had a nice CAGR of over 55% roughly over these years. The business is growing well. Right now, we're, as I said before, the industry's been growing between 7% and 14%. We've been growing at roughly 30% to 40%, roughly three times the industry speed. Many of the players are not moving, and they've just been growing at a consistent single-digit% or declining. We've been taking a lot of their business. In parallel to growing our revenues, we're growing our EBITDA. We've also been growing our gross margins. It's been a very effective two years. I would just look at the investment highlights to remind. I'm getting a note that the video is not appearing clearly. I think because of the screen. You're all new to this platform. I'll continue like this. Investment highlights. Talking about large markets, $2.3 billion with very high barriers to entry with large growth potential, especially what's going on with Trump. In the last year, we see a lot of movement to more enforcement, more incarceration, being harder on crime. There's more control on the border. All these things help our industry, not just for our company, but other companies as well. It's nice tailwinds. We're looking at rapid expansion over 30 countries in the U.S. We've had high revenue growth in the electronic monitoring business, over 40%, in the total business, over 30%, and at the turn of time with EBITDA of 69% with a nice margin of 25%. In Q1, we had a nice net income of $4.2 million and an EPS of $1.2 million. The Q2 numbers have been reported also. You can see them on our PR announcements. High recurring revenues from long-term government contracts. We put a lot of money into developing this proprietary technology, which is winning. That creates a good competitive advantage for us to continue our growth. We see that in Europe, and we see that in the U.S. Here are some highlights. At the end of Q1, the numbers here are updated to that. The cash was $17 million, a little bit lower at the end of Q2. You see in Q1, we had roughly $7 million revenue and EBITDA of $2.5 million. Revenues were similar in Q2. For the annual 2024, $27 million revenue, we had $6.3 million in EBITDA. Our book value of equity is in the mid-$30 million range. Our stock has been moving a lot. There's been a lot of volatility. We see people are starting to be aware of the story more and more. Earlier this year, the market cap was much lower. Now people are starting to understand the story and starting to get more appropriate valuations. I will say that we did trade some of our debt in. We paid down a lot of our debt. We traded some of it for equity at a price of $43 per share. There are indications of intrinsic value that are higher than what we see today. Over time, we believe people will start to see that more and more. That's the presentation. I'm going to open up for questions. Hopefully, the video will start working better. There we go. If there's any questions, I'm happy to answer them at this point. Thank you for staying put through the presentation. Thank you, Ordan, for your wonderful presentation. Please refer to the Q&A box for the question from the audience. Thanks so much. Okay, let me have a look here. Okay. First question for Ralph Glasgow. Glasgow, I hope I pronounced it correctly. How will you fund your growth? When I came into this role in 2021, we had an operating cash burn of over $9.5 million. Over the years, we improved on that and went down to $4.5 million and then $2.5 million. Last year's $1.3 million. We've been improving just by increasing our gross margins and growing our revenues and optimizing our operations. We've been improving our use of cash. Some growth does require capital because if you win a project in the U.S., everything is recurring revenue. You have to develop it. You have to develop the equipment, to manufacture the equipment, and then over six months to a year, get the cash back for it. The programs you draw on for five years. It is very cashflow positive, but there is some cash out that you have to do. We do that by using the various funding resources we had. We've raised money this year, $60 million. We have access to debt if we need to. Usually, when we announce contracts, there's a good response and there's a lot of interest from various investors to help the company if needed. Of course, we're trying to do that at optimal times for our investor base to minimize dilution. Here I'm asked by Bob Thomas. Funny question. Have you ever been approached by any potential acquirers? GEO, Private, Avatar Universal, companies like the Tentee and BI sold for 5X SuperCom's current valuation. SuperCom's accelerated traction in the U.S., extraordinary win rate in Europe could argue for a higher multiple. This is Bob's words. Thank you. It is hard to understand how a 60%, over 60% margin recurring revenue disruptive business in a rapidly growing industry could trade for 5X EPS with a stock market at 23X EPS. That's a great question, Bob. As I said earlier this year, the multiples we had were one-times earnings. Now it's five times. Our industry is trading much higher. We see companies trading at six to eight times or four to six times on acquisitions of revenues. We're trading less than two times revenues and we're disrupting and winning contracts at a much better rate than others. Our technology is performing much better. It just takes time for people to become aware. Of course, we've been approached by other companies, private equity, and competitors to be acquired. It doesn't mean we're going to take their offers, but we've been approached. It's natural. We're doing quite well in the industry lately and the valuations are low and people see this opportunity. What are the key differences between SuperCom's business model in the U.S. versus Europe? This is John A. May Yediko. Good question. I talk a lot about it in the earnings calls. In Europe, you're looking at national projects like the entire Ministry of Justice of Sweden or the entire Prison Services of Israel or Czech Republic or Romania. Larger projects, harder to win, more competitive to do longer evaluation programs, longer proposals. They're much more competitive, but at the end, you have a project for five to ten years. We win those very well. We have over 65% win rate. In the U.S., it's actually a little bit easier. It's fragmented into many, many counties, thousands of counties. You can win all these small little programs and it's faster. They don't do a long evaluation cycle. They ask the equipment, you send to them. They try it out. You do need more feet on the ground. You need more salespeople to talk to more customers and do more demos, but it's actually easier. Our win rate in the U.S. has been excellent. We haven't measured it yet compared to Europe. We're still in the early stages. In the U.S., we started with small projects. We're going to go to bigger ones like bigger counties. I think L.A. County and Cook County, Chicago, are larger than many of the contracts in Europe, just a county project. Later we go to state and then federal. You have ICE program, which is very large. In Europe, we usually have a local partner. We're the prime. We have a local partner that takes 20% or so. It varies, but they do all the translation. They work, they do customer support. They do all the monitoring support. They do everything with the government. In the U.S., we don't need local partners. Sometimes we have a value-added reseller we sell to them, but still what we get, the revenues we get are at higher margins. You'll see as we enter more and more in the U.S. market and the numbers grow, you know there's room for margin growth and more recurring revenue. The U.S. market in general is a very positive direction for us. The same person is asking, what's the current growth strategy for expanding into new geographies and contracts? I mentioned this on the presentation. In the U.S., we have a small sales team and we're winning projects just by county and county. We're going to start bidding on larger ones. In Europe, we're bidding on large national projects that we've done very well in the past, and we expect to do well also in the current and the future. We're also considering acquisitions. These are acquisitions of value-added resellers in our space. We know these companies very well. Many of them are customers of ours. We're able to increase their operating margins significantly by replacing the equipment they use with our equipment and also help them grow their top line by offering better technology to customers. It's a great opportunity for us if we can get the right price. That's something that we're considering as well. Another question is why does SuperCom win over incumbents in the markets it serves? I'd say the main thing is the technology. We have clear value additions to others, the biometric capabilities, the tracking capabilities, the accuracy, the algorithms, the reliability, the battery life, which runs for a year versus a day or two. We're able to do domestic violence in such a good way because of this unique proposition that we just put a bracelet on someone. He doesn't have to charge it. He doesn't have to be convicted. Just as a threat, we put a bracelet and we don't take a chance. We don't have a company that goes to the woman. He doesn't have to charge a bracelet. He doesn't have to connect it to the wall. He doesn't have to worry about it. Just put it on your leg and don't touch it until there's a proper trial. Our technology has been working well. Our track record has been impeccable. Many of our competitors have had big blow-ups in their tech. They had to call back all the technology, thousands of units. They've had programs they weren't able to implement. They've had different issues. We have had basically none. We have a good track record and we come in very clean. As our balance sheet improves, right now we're talking about mid-teens at the end of Q1 and Q2, between cash and our debt. Our debt has declined significantly. We paid all of it down. That makes it for a much stronger position where we're competing, and this is a great place to win more contracts. One second. I don't see any more questions. Thanks, Ordan. Could you please check on the chat box button? There are still some questions in there. I'm looking. Somebody is asking about 2026 revenue growth and EPS. We have no, we don't give guidance. We don't have any guidance right now. I can't answer that. The way the business works, we have some contracts that are very large, some contracts that are smaller. Over time, we'll have a very, very large base of smaller contracts, such that each one will not, smaller and larger, but no one, hopefully no one contract or two will be significantly larger than others, and it'll be easier to predict. Right now, we're bidding on projects that are much larger than things that we have, and if those come into play, that's going to change everything. As we're still growing quite rapidly into more geographies and we're bidding on a lot of projects, it's hard to foresee what's going to happen. We're not giving guidance. We're still under promise, over-deliver mode. You can see in the last three to four years since I came into the role, we've been doing well, surpassing expectations in almost every quarter. We've been, without giving guidance, just progressing the company. We hope to be able to do that to the best of our abilities. Of course, you can't have every quarter exactly as you'd like. There's a lot of volatility. This story is a multi-year story. Like I said, the company's been around for a long time, and also what we're doing takes time. It's government contracts. If you want to see the real progress, look at the wins, and over time, you'll see that come into the financials, and you'll see the company reach where it needs to reach. Each quarter could be a little different. Margins can move around, revenues can move around, a lot of things, because you're looking at many different projects that are being deployed exactly at the same time. I have a question here from Robert. Two top concerns for the future. I think about that one because we don't have so many concerns. We had a debt balance of over $35 million a few years ago, but we had a high cash burn, and now our cash burn has been decreased, and the debt balance is down to roughly $20 million. That alleviated a big concern for us. We're doing much better there. Other concern of getting the right market fit for the U.S. market because we're doing great in Europe, and in the U.S., it's been harder to break in, but we've also alleviated that concern because you can see over the last year, we've won over 30 different contracts in different geographies. It's a great testament multiple times over that things are going well there. We hope to pick up and make right deals with acquisitions to help accelerate our growth, and we hope to continue what we're doing. There's not any specific concern that's looming or keeping us up at night. Things are actually much more comfortable as of late. I see it. One second. Looking for more questions here. Just one moment. The SuperCom plan reporting year-end earnings in a timely manner. We announce that since I entered the role four years ago, we've always announced in a timely manner and also much of our history. We do the quarters within 45 days, and we do the annual report within 120 days, which is what is required by foreign issuers. We do that because our auditors, they're outside, they're in Israel, and they work on that timeline, and they work with many companies that are foreign issuers, and they plan their work so that we finish it within 120 days, which is what is allotted. Forty-five days for the quarter, 120 days for the year, audit of financials. Of course, we plan to be on time. We've been on time every single quarter since I have entered the CEO role in 2021. I think that's it. Oh, wait, let me check this. Wait another moment for questions, but then I think we're pretty much done. That's it. Thank you, everyone. Sorry for some of the technicalities and sorry for my voice. As I said, I've been sick the last few days. Happy I was able to make it today, and thanks for the interesting questions. Hope you keep following our story. As I said, by following the wins and the progress and expansion on technology, we'll be able to understand the general trajectory of the company. The quarters could be volatile in our industry, but over the years, if we continue to execute, you'll see the company and the valuations that are appropriate for companies such as ours. We have a great presence and a great positioning in the market today. We hope to continue to do what we're doing. I want to thank at this moment everyone on our team at SuperCom all around the world. We have a really strong team of people who are pushing this company forward every single day, from technology to sales to finances to support to manufacturing. I thank everyone for helping us reach where we are today, and we look forward to a great future together. Thank you for your investors who have been following the story as well and who have believed in SuperCom. We look forward to your continued interest. Once again, thanks again, everyone. Have a great conference. Thank you, Ordan. We will now close this session. That concludes SuperCom Limited's presentation. You may now disconnect. For details on upcoming presentations, please refer to the conference agenda. Thank you for your participation, and we look forward to welcoming you to the next session.