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Edited Transcript of DGLY earnings conference call or presentation 20-May-20 3:15pm GMT

Q1 2020 Digital Ally Inc Earnings Call

Overland Park Jun 22, 2020 (Thomson StreetEvents) -- Edited Transcript of Digital Ally Inc earnings conference call or presentation Wednesday, May 20, 2020 at 3:15:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* Stanton E. Ross

Digital Ally, Inc. - Chairman, President & CEO

* Thomas J. Heckman

Digital Ally, Inc. - CFO, VP, Treasurer & Secretary

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Conference Call Participants

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* Bryan Preston Lubitz

Aegis Capital Corporation, Research Division - VP of Investments

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Presentation

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Operator [1]

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This conference call may contain forward-looking statements with the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The words believe, expect, anticipate, intend, estimate, may, should, could, will, plan, future, continue and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters identify forward-looking statements. These forward-looking statements are based largely on our expectations or forecast of future events, can be updated by inaccurate assumptions and are subject to various business risks and known and unknown uncertainties, a number of which are beyond our control.

Therefore, actual results could differ materially from the forward-looking statements contained in this document, and readers are cautioned not to place undue reliance on such forward-looking statements. Digital Ally will undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. A wide variety of factors could cause or contribute to such differences and could adversely impact revenues, profitability, cash flows and capital needs. There can be no assurance that the forward-looking statements contained in this document will, in fact, transpire or prove to be accurate.

Ladies and gentlemen, thank you for standing by, and welcome to the 2020 first quarter operating results conference call. (Operator Instructions) Please be advised that today's conference is being recorded. (Operator Instructions)

I would now like to hand the conference over to your speaker for today, Mr. Stan Ross, CEO. Thank you. Mr. Ross, you may begin.

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Stanton E. Ross, Digital Ally, Inc. - Chairman, President & CEO [2]

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Thanks, Tammy. Thanks, everybody, for joining us today. I have Tom Heckman with us, our CFO. I know we had our year-end call not too many weeks ago, but we do want to make sure and touch on some of the new events that have occurred with our launch of our new disinfectant sanitizer. Also update everybody on some of the litigation matters. But probably more importantly, make sure and share with you the financial side of things for the company and how things are continuing to see progression in -- of improvements in that forefront.

So with that, I'll turn over the call to Tom Heckman.

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Thomas J. Heckman, Digital Ally, Inc. - CFO, VP, Treasurer & Secretary [3]

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Yes. Thank you, Stan. And welcome to everyone. I'm very happy that you're able to spend some time with us this morning. We did file the 10-Q with the SEC this morning, so it is available, and I do refer you guys to that website for a full depiction of what happened in the first quarter as far as the company goes.

So with that, obviously, the world changed in the first quarter 2020 with the coronavirus. We started seeing effects of that middle part of the quarter. And certainly, towards the end, it had a very, very large impact on the company and certainly in our first quarter earnings.

If you look at it, our law enforcement customers, especially new ones, generally require on-site training and installation. So that obviously got cut short towards the end of the quarter. So that had an impact on our revenues. And then you look at our commercial customers, some of our very largest commercial customers like the cruise ships, the taxi cabs, the parking spots of the world and NASCAR virtually shut down. We're -- and they are our largest commercial customers. So it obviously had an impact on us. One thing that really turned the quarter for us was our inability to ship the first order on our large international body camera order. I will tell you, we had stacked up on the pallets ready to go out the door and then we got the call that the country had shut down, incoming and outgoing people in that. So we obviously couldn't ship that down there and especially because our installers would not be able to get in, or we couldn't train them and all that. So that obviously had a very large impact on the quarter or else, we'd be talking about some very different numbers had that order gone out.

Even with all that going on, our first quarter revenues were slightly higher than our Q4 2019 revenues by about $10,000 or so. And then from a -- and only 5% down from Q1 2019 quarter. So actually, I'm -- with the thing happening to us with the coronavirus, I'm pretty happy with the results on the revenue side, having been down only 5% year-over-year. The good news is that our cost of revenue declined to where we had more gross profit in the first quarter 2020 as compared to 2019, even though we had 5% less in sales.

Our gross margins were 52% for the quarter -- for the 2020 quarter versus 46% in the 2019 quarter. So obviously, we had better sales mix. We still see migration of customers over to more of a service model base, which obviously gives us better gross margins on those sales, and it really showed up in the gross profit line being higher even though sales were lower for the quarter.

If you look at SG&A expense for the quarter, a dramatic drop in the amount of SG -- overall SG&A. It dropped by almost $1.1 million year-over-year, which is a 25% decline. Looking at the numbers or the details, travel costs were much reduced because of the coronavirus pandemic. We did do some staff-level reductions in line with what was happening primarily in our commercial customers. NASCAR was shut down. So we had people that were dedicated to that as well as the cruise ships, taxi cabs and that. So we made some headcount reductions that showed up somewhat in the first quarter. And then obviously, it's going to have a good impact on the balance of 2020 as well.

Unfortunately, our legal expense was down. And the reason I say, unfortunately, is that there has been some developments in the Axon appeal. There was a 3 judge panel that had an adverse ruling as far as the appeal goes. And we are, in fact, looking at -- asking for rehearing in front of that. So with the appeal happening, our legal spend was much reduced year-over-year, and it really reflected in lower SG&A for the quarter.

If you look at our operating loss line, we had an improvement of $1.2 million or 38% year-over-year. So that's obviously a good trend. Hopefully, we can report operating profits at some time in 2020, but we did see a very nice improvement in the operating loss for the quarter.

In the below-the-line items, we had interest expense of $307,000. That's primarily due to the convertible debt that was outstanding partially in the first quarter. That entire issuance, which happened back in August of 2019, has now either been converted or paid off. So those notes are no longer outstanding. We had a noncash change in fair value of those convertible notes of $412,000 charge below the line.

And then if you look at the proceeds investment agreement, the change in that was a noncash credit of $307,000 for the quarter. Now I'll remind you, that's the litigation proceeds financing we did a year or 2 ago. And it's really only paid back -- or most of it is only paid back if we're successful in our suit. And obviously, with the developments on the Axon side, the estimate of that obligation was reduced by $307,000 during the quarter. So with all that said, we were about $900,000 better in improvement in our overall net loss for the quarter, which, given the world change with the coronavirus, I'm happy to report that we had an improvement in our net loss from that standpoint.

Let's look at some other important developments. We have talked about the staff reductions already. In addition to that, we're moving to new facilities with the staff reductions and our movement more to service level -- service model. We're not meeting near the space we have now. So we were lucky that our lease was ending. I think it ended in April 30. So we were -- we timed that just right. The new facilities right now look to be about 1/3 of the cost, total occupancy cost that we currently have in our old facilities. So I would hope that makes a good impact in the SG&A for many quarters to come.

We did talk about the Axon appeal. And I'm sure you will have some questions about that, and we'll address those in the Q&A section. Stan already alluded to the fact that we did add the disinfectant line. And if you step back and look at it, that's really a natural fit with our customer base. Our first responders, law, fire, ambulance, EMS, obviously have a need for disinfectant, and this is an eco-friendly disinfectant. It's not toxic or anything like that. And then even if you have a look at our commercial lines, once the cruise ships gets going again, they will be obvious users of that product. Taxi cab is the same thing. So NASCAR, obviously, we'll have a need for it. So we think that this is a good add-on line to our product suite, and we're actually looking at adding some different products in that same category, maybe even some hardware like foggers, sprayers, temperature reading devices, so on and so forth. So we hope that this is a long-term product line for us, and it really will backfill some of the revenue challenges we have caused by the coronavirus.

We just recently, in April, raised a $1.5 million in new convertible notes. So our cash position is much better than it was at 3/31. We also applied for and received $1.4 million in the payroll protection program of the SBA. So we're focusing on getting as much of that as we can for given. But we're not carrying additional staff just to carry them to get it from (inaudible). We've made the appropriate reductions where necessary. And we believe that, that will set us up for good results later in 2020.

We also received a smaller, what they call, an EIDL Loan, E-I-D-L Loan from the SBA. It is a loan. It's repayable over 30 years at 3.75% interest. It was a small one for a $150,000, and we just received that a week or 2 ago.

We still have our challenges with the NASDAQ. You'll recall that we have until June 30 to meet the minimum equity requirement or market capitalization requirement. And as of now, that has not been delayed or changed due to the coronavirus, although I have expectations that it will, but it has not to date. We also have until December 28 to meet the $1 minimum bid price to stay on NASDAQ. So we have our challenges with that. But I think with the coronavirus, we'll be able to get a delay in the deadlines imposed by that.

We've also, to date, have tabled our Annual Shareholders Meeting because of the coronavirus. We didn't know if we could meet face-to-face or even have that larger meeting with the rules that come down from the health department in that. We will proceed with the proxy in the near future, and I'm talking of the next week or two, we'll probably follow our preliminary proxy and then set the annual meeting and so forth. But it is going to be later than it has typically been.

So to wind it all up, given the headwinds that the coronavirus caused for the first quarter, I am pretty happy with the trends that we're seeing in our P&L. I do warn you that June 30 will be -- will see some definite reductions in revenues because of the coronavirus and what's happened on certainly with our international orders and that. But we've dealt with the cost side of it, and I hope to minimize any overall impact, especially when you consider the, hopefully, the added revenue the disinfectant line will bring to us.

So with that, I'll turn it back to...

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Stanton E. Ross, Digital Ally, Inc. - Chairman, President & CEO [4]

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Thanks a lot, Tom. And just to continue on the disinfectant line or lines that we may be carrying, we're now currently working with one of the largest manufacturers in the country and working with them directly with some of the products that we would like to see being able to offer to our existing customers and, hopefully, new customers as well. We have seen quite a bit of a pickup over the last 2 weeks even. We now have a major, I guess, chain that has approximately 140 stores that are starting to get out there and do a little bit of the marketing of the product. So that's -- those orders have started rolling in on a daily basis, which is very encouraging.

And so just like Tom said, while we have our guidance out there at the $13.5 million that we would try to exceed. There's just too many headwinds for us to go ahead and keep that number out there until we know for sure how quickly things do turn back around and get back to normal, we hope. So we're going to have to pull that from -- as a target. But at the same time, I say that, and I look at the growth that we're having on the disinfectant in the other products that we're looking to introduce, including the breathalyzer that we have been continuing to work on in additional opportunities. We may be well surprised in regards to how this plays out. So there's a lot of encouraging things, and we have made a lot of the right moves to sit here and preserve cash and to sit there and look for business opportunities in this environment.

So Tammy, I think we're going ahead and open up the floor for Q&A now.

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Questions and Answers

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Operator [1]

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(Operator Instructions) Your first question comes from the line of Bryan Lubitz with Aegis Capital.

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Bryan Preston Lubitz, Aegis Capital Corporation, Research Division - VP of Investments [2]

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Let's dive right into it. So obviously, corona has caused a monkey wrench on pretty much everyone's plans over the course of the last 3 months, where -- even though we deal with first responders, we're not, I guess, immune to it. What I want to focus in on is the 5,000 body camera order that you guys announced earlier in the year. Obviously, they -- I think you guys alluded to this on the last quarter as well. We had the product at the shipping yard and then we had to pull it off. Are we getting any feedback from this, I guess, customer in regards to when we can actually ship these out? And it's only delayed, it's not canceled. Am I right in that?

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Stanton E. Ross, Digital Ally, Inc. - Chairman, President & CEO [3]

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Right. We're at right now is we still are talking to them. There's another opportunity within the country that is still wanting to continue to move forward and maybe a little more aggressive than what the Federal Police are wanting to. So we still see this starting to pick back up. And I would anticipate it maybe some sign of it beginning here this quarter since things are opening back up. So we have not -- have a scenario where they're just up and walking away, if that's what you're curious about, Bryan.

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Bryan Preston Lubitz, Aegis Capital Corporation, Research Division - VP of Investments [4]

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Yes. I wanted to make sure that the contract is still valid, if you will. Can I ask, Stan, in the delay, are you guys loading up so that when we can actually ship out, it wouldn't be a miss in terms of the amount of cameras we sent out?

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Stanton E. Ross, Digital Ally, Inc. - Chairman, President & CEO [5]

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Yes. I mean, I think -- honestly, I think we're just sort of still being cautious because we want to make sure and watch the cash and make sure that this thing continues to move forward. So we haven't gotten overly aggressive in regards to stocking up inventory at this point in time. But we also are very much aware that the long-term items that would be needed, those would be very comfortable that we have those available to us. So it would be caught and attached to a wait in 90 days on the long-lead item parts.

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Bryan Preston Lubitz, Aegis Capital Corporation, Research Division - VP of Investments [6]

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Okay. Tom, this one's for you. Obviously, it's awesome that we're seeing our margins go from 46% to 52%. I mean, that increase is solid. Do you have an idea? Obviously, again -- and all this is assuming we're back to normal, but do you have an idea where we can kind of get on top line for margins?

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Thomas J. Heckman, Digital Ally, Inc. - CFO, VP, Treasurer & Secretary [7]

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Well, our stated goal has been for some time to get to 60% overall gross margins. I think that's a very attainable target, especially with the service aspect of things and the very nice margins growing off by that. So I think 60% is a good goal, but it may be even low -- too low, given where we're headed with the service piece.

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Bryan Preston Lubitz, Aegis Capital Corporation, Research Division - VP of Investments [8]

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Okay. When you say service, are you lumping in the data storage part of it as well? Or is that separate?

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Thomas J. Heckman, Digital Ally, Inc. - CFO, VP, Treasurer & Secretary [9]

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Yes. That's included in there. That's cloud storage, that's installation, that's maintenance contracts, so on and so forth.

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Bryan Preston Lubitz, Aegis Capital Corporation, Research Division - VP of Investments [10]

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Okay. Sticking with you, Tom. Obviously, we've issued new shares. We have some warrants out there, et cetera. You had mentioned earlier in the call that you're looking for us to get to a profitability for earnings per share. What do we need for revenue with the shares that are new out there for us to kind of break the profit? Do you have that number in mind?

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Thomas J. Heckman, Digital Ally, Inc. - CFO, VP, Treasurer & Secretary [11]

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Well, I do, but we can't really project that, that would be a forecast. We're not that far away from it in reality, Bryan. We've cut a lot of SG&A out, and that obviously lowers our breakeven from the revenue side. And then you couple with the fact that this disinfectant line, the margins that will be thrown off by that are quite nice. How big a part of that it will be? So I think the cost side is the big driver, though. SG&A is going to continue to trend down and hopefully, rather sharply because of some of the actions we've taken already.

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Bryan Preston Lubitz, Aegis Capital Corporation, Research Division - VP of Investments [12]

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Okay. And I have 2 more questions, guys. Sticking with DanaLite since you brought it up. Stan, you had said in the past that you guys are exploring all options in terms of other vendors, other suppliers and, potentially, even having your own label, if you will, for Digital Ally itself. Do we have any type of an update on how we're doing sales-wise with DanaLite that we can kind of share at this time?

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Stanton E. Ross, Digital Ally, Inc. - Chairman, President & CEO [13]

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Yes. Not right now for a couple of reasons, Bryan, I want to make sure that we are able to secure a few things in regards to that area that we were focusing on without tipping our hands too much. And -- but I would anticipate a full-blown update on the next quarter call and can share some numbers with you. And not only by then, I would anticipate some of the things that we're exploring will be finalized, and we will be able to talk about and/or you'll see in the form of a release.

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Bryan Preston Lubitz, Aegis Capital Corporation, Research Division - VP of Investments [14]

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Well, piggybacking off of that, Stan, you had mentioned earlier in the call that we're dealing with the chain, and they've started to obviously get some orders that are a little bit more steady. You mentioned in the last call, a grocery store chain. I don't know if this is the grocery store chain or if this is a different chain. But that being said, if you were to secure that contract with those guys before the quarter -- conference call next quarter, is that something that you would let us know about?

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Stanton E. Ross, Digital Ally, Inc. - Chairman, President & CEO [15]

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Yes. I think so. And again, the bottom line is they've already started doing a real preliminary looking into the product, and they basically have over 300 -- this particular contract, 3 -- over 300, what's, called storefronts. And they did a real quick circle with everybody. And 140 of them said, hey, we're interested in this product, let's start getting it in here and see what we can do. And that just started occurring here in the -- obviously, in the second quarter. So if they'll continue to build on what they've already got going on and get the other, let's call it, a 160-plus stores come on board, that will be a very, very nice relationship. And what would make it nicer is us being able to continue to move towards possibly our own label and even greater margins in regards to the product itself. So -- but I'll -- it definitely will be a main topic in our second quarter call.

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Bryan Preston Lubitz, Aegis Capital Corporation, Research Division - VP of Investments [16]

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Okay. Tom, the money on the books at the end of the first quarter was -- it's eye-opening, if you will, only $300,000. Am I right, we've got roughly another $3 million on the books since then, the $1.6 million in promissory and the $1.4 million for the PPP, so we're closer to $3 million on the end right now?

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Thomas J. Heckman, Digital Ally, Inc. - CFO, VP, Treasurer & Secretary [17]

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Yes. I can't give exact numbers, Bryan, but you're right. We raised $1.5 million of cash in the convertible note deal, and we raised between the 2 different loan programs with the SBA about $1 million, $1.05 million -- $1.50 million, or roughly in that neighborhood. So yes, we added a pile of cash to the books. But I can't tell you exactly where we're at right now.

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Bryan Preston Lubitz, Aegis Capital Corporation, Research Division - VP of Investments [18]

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Okay. And last thing, Stan, is there any update you can give us on the mobile insight data partnership that you guys had announced earlier in the year? Are we getting any traction with that partnership?

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Stanton E. Ross, Digital Ally, Inc. - Chairman, President & CEO [19]

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Yes. It's still -- it has come along real nicely. And again, with everything being sort of shut down, we haven't had a real opportunity to go out and get in front of a lot of people. But we are absolutely poised to go and start talking to some of these vendors that we've been talking -- or potential customers for over-the-road opportunities. And with NASCAR getting fired back up, that's a positive. The Indy digital series is getting ready to go. So we're going to be able to see and have the opportunity to start getting in front of these customers right away.

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Bryan Preston Lubitz, Aegis Capital Corporation, Research Division - VP of Investments [20]

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Super. All right. Well, Tom, Stan, wish you guys the best of luck in the next quarter. And hopefully, we see some of these contracts materializing soon.

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Operator [21]

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(Operator Instructions) Your next question comes from the line of [Mike Zinik], just a shareholder.

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Unidentified Shareholder, [22]

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Stan, Tom, a couple of quick questions. So the entity has been public now for 11 years, is that correct?

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Thomas J. Heckman, Digital Ally, Inc. - CFO, VP, Treasurer & Secretary [23]

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Well, we've been public since 2005, we've been on the NASDAQ since 2008. So we were public before that. But we went on to NASDAQ January 2008.

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Unidentified Shareholder, [24]

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Have we ever turned to profit?

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Thomas J. Heckman, Digital Ally, Inc. - CFO, VP, Treasurer & Secretary [25]

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Yes. We -- our first 12 quarters were all profitable sequentially.

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Unidentified Shareholder, [26]

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Okay. So first 12, then since then, no profitability?

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Thomas J. Heckman, Digital Ally, Inc. - CFO, VP, Treasurer & Secretary [27]

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No, we've had sporadic quarter here, quarter there type earnings.

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Unidentified Shareholder, [28]

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So I'm just trying to understand how we're not executing and what we're doing to identify that and what immediate changes are being implemented besides cutting costs and diversifying the business into PPE and some of the niche markets you mentioned?

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Stanton E. Ross, Digital Ally, Inc. - Chairman, President & CEO [29]

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Yes. Mike, there's a couple of things. Obviously, you're very much aware of the history we've had in regards to the body camera and some of the litigation side of things and also the launching of our new EVO product. EVO product, you probably should have had out a good year, 1.5 years before it's in the current launch. So that should help us out quite a bit in just the markets we're looking at right now. Now the service side of things continues to grow, and we've had pretty good growth there year-over-year, and the service model is a lot more profitable to us than just the straight sale to law enforcement. So we have been making that transition along with the hopeful introduction to new products that would be to our existing clientele, our customers that we have, such as the breathalyzer, obviously the disinfectant and some of those low-hanging fruit opportunities. The situational security side of things evaporated with everything being shut down. But we do anticipate that starting to pick back up, and that was a very nice entity for us as well.

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Unidentified Shareholder, [30]

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And what's our burn rate right now per quarter?

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Thomas J. Heckman, Digital Ally, Inc. - CFO, VP, Treasurer & Secretary [31]

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Well, we're roughly $1 million, $1.2 million short. If you look at the cash flow statement in that. But I would tell you that our trend line is much improved, and a lot of that is because of the cost containment, the headcount reductions. And we're looking at our occupancy costs dropping to 1/3 of what it is now. So I expect improvement throughout the balance of 2020 and our cash burn.

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Unidentified Shareholder, [32]

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So call it, 2.5 to 3 months of cash available. How are we going to bridge that gap?

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Stanton E. Ross, Digital Ally, Inc. - Chairman, President & CEO [33]

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I'm not following you there, but our quarterly burn is about $1 million.

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Unidentified Shareholder, [34]

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Oh, your quarterly, I thought you said monthly.

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Stanton E. Ross, Digital Ally, Inc. - Chairman, President & CEO [35]

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No, no, no. And that is it's spreading...

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Unidentified Shareholder, [36]

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In 2.5 to 3 quarters, how do you plan on bridging that gap?

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Stanton E. Ross, Digital Ally, Inc. - Chairman, President & CEO [37]

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Well, we're adding disinfectant line. We're migrating customers over the service model. We're cutting costs. I mean we've got a plan, and we're executing right now.

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Unidentified Shareholder, [38]

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I mean in all fairness, I'm sure everybody on this call has received countless PPE opportunities from domestic and abroad providers. So the competition is going to be fierce, which it already is. I probably receive personally a half dozen or more a day. So that's kind of difficult to see a company more from law enforcement products into PPE and then into some of the niche markets that you mentioned that have a finite growth capability. So I'm just concerned that you're going to run out of cash.

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Stanton E. Ross, Digital Ally, Inc. - Chairman, President & CEO [39]

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Yes. I mean, the one thing, though, Mike, you got to realize that we've got -- as far as law enforcement, we've probably sold over half of the agencies out there as far as of the 18,000, about 9,000 we've sold to. And we still have active 5,000, 6,000 that are out there that we sell to. And so while you probably heard this comment before, too, I mean, we truly have had that last mile that touches the end user. So we have a very good relationship with our customer base. And so these products that we're talking about, there's already a tremendous amount of confidence and trust in Digital Ally to where we're seeing them being very receptive into giving us a shot and trying our product. And -- so hopefully, it will turn into increase in the top line, which, again, will go and help the bottom line and the burn, which you're referring to.

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Unidentified Shareholder, [40]

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So it seems to me, you'd probably run multiple things in tandem, obviously, trying to run the business profitably, but also consider M&A. Are you considering M&A? And if so, where are you?

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Stanton E. Ross, Digital Ally, Inc. - Chairman, President & CEO [41]

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So that's actually a great question, Mike. The industry, just like back in '09, '10, '11 when things were pretty tough as far as the economy, there was a lot of consolidation and/or companies that just were by the wayside. I do anticipate there being opportunities out there, and there may be some consolidation whether or not we're on -- what end we're on, who knows. But I do see the consolidation and do see that there's going to be some opportunities, especially if they're not -- they do not have access to capital. There's some out there that are just really going to have a challenging times. So that's a great question, Mike. And our eyes are wide open to -- for opportunities along those lines.

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Unidentified Shareholder, [42]

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And do you see the value of the enterprise greater than what the market value is currently, call it, $13.5 million?

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Stanton E. Ross, Digital Ally, Inc. - Chairman, President & CEO [43]

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It's so frustrating when you sit there and you see other entities out there that are trading at really big multiples of -- whether it be revenue or whether it be earnings, whatever. So right now, we're keeping our head down and going to try to make sure and do what we can do to get to profitability and the stock should take care of itself. But we definitely will make sure that the news about the successes and the progress we make will get out to the shareholders in The Street.

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Operator [44]

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Your next question comes from the line of [Patrick Haggard], private investor.

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Unidentified Participant, [45]

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I was wondering, were you guys possibly looking into offering your disinfected to the airlines besides the cruise lines also?

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Stanton E. Ross, Digital Ally, Inc. - Chairman, President & CEO [46]

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Yes. Absolutely. We're talking to them all. And one of the things that we're pretty well -- we have a pretty good relationship with the airline industry because of NASCAR and Indy. They both have airlines that they work with real closely. So we're looking at not only the product because we feel like the product clearly will meet their needs, but even also some of the equipment for -- such as electrostatic sprayers and other dispensary type of stuff that will be needed for that fluid. But absolutely, airlines is definitely on our radar, no pun intended.

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Unidentified Participant, [47]

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And what about the other smaller businesses like the restaurants and hair salons and other businesses like that? Are you trying to set something up where they can order directly from you? Or how are you planning on getting into that section of the business, too?

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Stanton E. Ross, Digital Ally, Inc. - Chairman, President & CEO [48]

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Yes, we are. And what we'll do is we'll definitely -- we already have a little bit of an e-commerce platform on our website that they can get online and order directly. But we look to actually have a much more, I want to say, stronger, I guess, platform for this particular product and/or products to be talked about and have it really focused on disinfectants, sanitizers, cleansers, stuff along those lines. So it definitely -- we don't want it to be a situation where people look at this and see a company that's involved in video solutions now all of a sudden doing disinfectants. I mean, we absolutely are working with premium top-notch manufacturers, scientists, all of the above to be able to deliver the -- a strong line of products, and we will have the platform in which individual can go or a store can go or a company can go and buy from. But yes, we're working on that. And I would hope to have it all up and flying within the next 10 days.

Well, listen, we want to thank everybody for their time again today. Again, I know this was sort of a short turn from our year-end call, but we do feel really good about the direction of where we're going with our product lines, with our expenses and do believe that we are going to get back to a level of normalcy to where the top line should start improving as well. And therefore, we can all, hopefully, meet the goal of stock appreciation and earnings from this company.

So thanks, everybody, so much for your time, be safe, and we'll be talking soon.

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Operator [49]

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Ladies and gentlemen, that concludes today's conference call. Thank you for participating. You may now disconnect.