Cemtrex Inc (CETX) 2022 Q4 法說會逐字稿

Greetings and welcome to the Cemtrex fourth-quarter and full-fiscal year 2022 financial results conference call. (Operator Instructions) As a reminder, this conference is being recorded.

歡迎來到 Cemtrex 第四季度和 2022 財年全年財務業績電話會議。 （操作員說明）提醒一下，正在錄製此會議。

Before we begin the formal presentation, I would like to remind everyone that statements made on the call and webcast may include predictions, estimates or other information that might be considered forward looking. While these forward-looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to differ materially.

在我們開始正式介紹之前，我想提醒大家，在電話會議和網絡廣播中發表的聲明可能包括預測、估計或其他可能被視為前瞻性的信息。雖然這些前瞻性陳述代表了我們目前對未來的判斷，但它們受到可能導致實際結果大不相同的風險和不確定性的影響。

You are cautioned not to place undue reliance on these forward-looking statements, which reflect our opinion only as of the date of this presentation. Please keep in mind that we are not obligating ourselves to revise or publicly release the result of any revision to these forward-looking statements in light of new information or future events.

請注意不要過分依賴這些前瞻性陳述，這些陳述僅反映我們截至本演示文稿之日的意見。請記住，我們沒有義務根據新信息或未來事件修改或公開發布對這些前瞻性陳述的任何修改結果。

Throughout today's discussion, we will attempt to present some important factors relating to our business that may affect our predictions. You should also review our most recent Form 10-K and Form 10-Q for a more complete discussion of these factors and other risks, particularly under the heading Risk Factors. A press release detailing these results was issued on December 28, and is available in the Investor Relations section of our company's website cemtrex.com.

在今天的討論中，我們將嘗試介紹一些與我們的業務相關的可能影響我們預測的重要因素。您還應該查看我們最新的 10-K 表格和 10-Q 表格，以更全面地討論這些因素和其他風險，尤其是在風險因素標題下。詳細介紹這些結果的新聞稿於 12 月 28 日發布，可在我們公司網站 cemtrex.com 的投資者關係部分獲取。

Your host today, Saagar Govil, Chief Executive Officer; and Paul Wyckoff, Chief Financial Officer, will present results of operations for the fourth quarter and full fiscal year ended September 30, 2022.

您今天的主持人是首席執行官 Saagar Govil；首席財務官 Paul Wyckoff 將介紹截至 2022 年 9 月 30 日的第四季度和整個財年的運營結果。

At this time, I will turn the call over to Cemtrex's Chief Executive Officer, Saagar Govil.

此時，我會將電話轉給 Cemtrex 的首席執行官 Saagar Govil。

Great. Thank you, operator. And good afternoon, everyone. I'm pleased to welcome you to today's fourth-quarter and full-fiscal year 2022 financial results conference call. The fourth quarter was highly transformative for Cemtrex, divesting the non-core assets SmartDesk and VR subsidiaries to focus on accelerating our Vicon and AIS brands.

偉大的。謝謝你，運營商。大家下午好。我很高興歡迎您參加今天的第四季度和 2022 財年全年財務業績電話會議。第四季度對 Cemtrex 來說具有高度變革性，剝離了非核心資產 SmartDesk 和 VR 子公司，專注於加速我們的 Vicon 和 AIS 品牌。

We see escalating demand for these businesses and believe this shift in focus to capture significant near-term opportunities will help us to reach positive operating income by 2024 and maximize shareholder value over the next several years. This restructuring is expected to result in an operating expense reduction of over $5.2 million per year on a go forward basis.

我們看到對這些業務的需求不斷增加，並相信這種將重點轉移到抓住重大近期機會的做法將有助於我們在 2024 年之前實現正營業收入，並在未來幾年實現股東價值最大化。預計此次重組將使運營費用每年減少超過 520 萬美元。

We have also identified another million in corporate overhead from legal, accounting, and development expenses that were incurred in fiscal year '22 that will not be incurred in fiscal year '23. This will result in approximately $6.2 million in operating expense reduction to be realized going forward from November 2022. We believe our transformation will deliver a strong balance sheet and add access to capital markets to execute our growth strategy.

我們還從 22 財年發生的法律、會計和開發費用中確定了另外 100 萬美元的公司間接費用，這些費用不會在 23 財年發生。從 2022 年 11 月開始，這將使運營費用減少約 620 萬美元。我們相信，我們的轉型將帶來強勁的資產負債表，並增加進入資本市場的機會，以執行我們的增長戰略。

Our focus on Vicon comes at an opportune time as it is rapidly building a dominant security technology brand focused on VSaaS solutions, leveraging AI and cloud technology solution for commercial, industrial, and government applications. Vicon is seeing growing demand for its award-winning roughneck cameras and Valerus video management software solutions. We believe Vicon can move towards $5 million to $10 million in recurring revenue over the next couple of years as a global leader in advanced security and surveillance technology to safeguard businesses, schools, municipalities, hospitals, and cities across the world.

我們對 Vicon 的關注恰逢其時，因為它正在迅速打造一個專注於 VSaaS 解決方案的主導安全技術品牌，利用人工智能和雲技術解決方案為商業、工業和政府應用提供服務。 Vicon 發現對其屢獲殊榮的鑽工相機和 Valerus 視頻管理軟件解決方案的需求不斷增長。我們相信 Vicon 可以在未來幾年內實現 500 萬至 1000 萬美元的經常性收入，成為先進安全和監控技術的全球領導者，以保護世界各地的企業、學校、市政當局、醫院和城市。

The industry is rapidly shifting to SaaS solutions leveraging AI and cloud technology solutions for today's highly dynamic environment. Allied Market Research is predicting the global VSaaS and video surveillance market will reach over $83 billion by 2030, with a CAGR of 10.9% between 2021 and 2030.

該行業正在迅速轉向利用 AI 和雲技術解決方案來應對當今高度動態環境的 SaaS 解決方案。 Allied Market Research 預測，到 2030 年，全球 VSaaS 和視頻監控市場將達到 830 億美元以上，2021 年至 2030 年的複合年增長率為 10.9%。

During the quarter, we were delighted to welcome Shane Compton as COO at Vicon Industries. Shane is an accomplished leader in the physical security industry bringing over 20 years of experience as a COO, CTO, and CPO at industry-leading companies like Costar and Pelco. He's now leading the company's global sales, support, operations and engineering teams to deliver on operational excellence and deepen Vicon's commitment to world-class support and customer experience.

在本季度，我們很高興地歡迎 Shane Compton 擔任 Vicon Industries 的首席運營官。 Shane 是物理安全行業的傑出領導者，擁有 20 多年在 Costar 和 Pelco 等行業領先公司擔任首席運營官、首席技術官和首席產品官的經驗。他現在領導公司的全球銷售、支持、運營和工程團隊實現卓越運營，深化 Vicon 對世界級支持和客戶體驗的承諾。

Shifting gears on our Advanced Industrial Services businesses, we are also incredibly optimistic as the company is well positioned to monetize the increase in demand for predictive maintenance services, reshoring of manufacturing back to the US, and increasing complexity in industrial equipment. With over 35 years in the industry and high repeat business, AIS has a strong reputation as a single source industrial contractor and premier provider of industrial contracting services.

換檔我們的高級工業服務業務，我們也非常樂觀，因為該公司處於有利地位，可以通過預測性維護服務需求的增加、製造業回流美國以及工業設備日益複雜的情況獲利。憑藉超過 35 年的行業經驗和高重複業務，AIS 作為單一來源工業承包商和工業承包服務的主要供應商享有盛譽。

AIS is a significant source of cash flow and has a strong balance sheet, empowering the ability to offer more comprehensive services due to inventory of equipment. As the industrial and manufacturing economy in the US continues to thrive, we believe AIS has significant potential for expansion, particularly with bolt-on acquisitions.

AIS 是現金流的重要來源，擁有強大的資產負債表，由於設備庫存，能夠提供更全面的服務。隨著美國的工業和製造業經濟繼續蓬勃發展，我們相信 AIS 具有巨大的擴張潛力，尤其是通過補強收購。

To mark this important transformation, we have also taken the opportunity to launch a next-generation Investor Relations website to better reflect our forward-thinking approach to the Cemtrex brand and enhance communications with the investment community. We believe there's a compelling investment case to be made to both current and prospective shareholders, and the site will serve as an invaluable tool to keep our investors better informed of our progress and strategic vision. This site will be going live over the next few days and we will make an announcement accordingly.

為了紀念這一重要轉變，我們還藉此機會推出了下一代投資者關係網站，以更好地反映我們對 Cemtrex 品牌的前瞻性思維方式，並加強與投資界的溝通。我們相信，對於當前和潛在股東來說，都有一個令人信服的投資案例，而且該網站將作為一個寶貴的工具，讓我們的投資者更好地了解我們的進展和戰略願景。該站點將在接下來的幾天內上線，我們將相應地發佈公告。

I'll now turn the call over to Paul Wyckoff, our CFO, to discuss the financial. Paul?

我現在將電話轉給我們的首席財務官 Paul Wyckoff 來討論財務問題。保羅？

Thank you, Saagar. Our revenue for the full year of fiscal year 2022 totaled $50.3 million, compared to revenue of $43.1 million for the full year of 2021, a 17% increase year over year. The increase in revenue for the year was due to increased demand for the company's products and services.

謝謝你，薩加爾。我們 2022 財年全年的收入總計 5030 萬美元，而 2021 年全年的收入為 4310 萬美元，同比增長 17%。本年度收入的增加是由於對公司產品和服務的需求增加。

The Advanced Technology segment revenues for the years ended September 30, 2020, and 2021, were $29.1 million and $24.2 million, respectively, an increase of 20%. The Advanced Technology segment increase was due to an increased demand for security technology products under the Vicon brand. Industrial Service segment revenues for the full year 2022 increased by 12% to $21.2 million, primarily due to the increase in demand for their services.

截至 2020 年 9 月 30 日和 2021 年 9 月 30 日止年度，先進技術部門的收入分別為 2910 萬美元和 2420 萬美元，增長 20%。先進技術部門的增長是由於對 Vicon 品牌下的安全技術產品的需求增加。工業服務部門 2022 年全年收入增長 12% 至 2120 萬美元，這主要是由於對其服務的需求增加。

Gross profit for the year ended September 30, 2022, was $19.1 million or 38% of revenues as compared to a gross profit of $17 million, or 39% of revenues for the year ended September 30, 2021. The decrease in gross profit as a percentage of revenues for the year ended September 30, 2022, as compared to the prior year, was due to increased cost of revenues as a result of increased costs for goods, and increased transportation costs for those goods.

截至 2022 年 9 月 30 日止年度的毛利為 1,910 萬美元，佔收入的 38%，而截至 2021 年 9 月 30 日止年度的毛利為 1,700 萬美元，佔收入的 39%。毛利下降為與上一年相比，截至 2022 年 9 月 30 日止年度的收入百分比增加是由於商品成本增加導致收入成本增加，以及這些商品的運輸成本增加。

Total operating expenses for 2022 were $35.9 million, compared to $25.7 million for 2021. The increase in total operating expenses was primarily driven by increases in personnel costs, insurance, travel, legal, and research and development costs. Operating activities for continuing operations used $16.1 million for the year ended September 30, 2022, compared to using $10.1 million of cash for the year ended September 30, 2021.

2022 年的總運營費用為 3590 萬美元，而 2021 年為 2570 萬美元。總運營費用的增加主要是由於人員成本、保險、差旅、法律和研發成本的增加。截至 2022 年 9 月 30 日止年度，持續經營業務的經營活動使用了 1610 萬美元，而截至 2021 年 9 月 30 日止年度使用了 1010 萬美元現金。

Net loss for the full year of 2022 was $13 million, as compared to a net loss of $7.8 million in 2021. Net loss in the fourth quarter of 2022 totaled $3.2 million, compared to a net loss of $9.7 million in the fourth quarter of 2021. Cash and cash equivalents totaled $10.6 million at September 30, 2022, as compared to $11.4 million at June 30, 2022, and $15.4 million at September 30, 2021.

2022 年全年淨虧損 1300 萬美元，而 2021 年淨虧損 780 萬美元。2022 年第四季度淨虧損總計 320 萬美元，而 2021 年第四季度淨虧損 970 萬美元截至 2022 年 9 月 30 日，現金和現金等價物總計 1060 萬美元，而 2022 年 6 月 30 日為 1140 萬美元，2021 年 9 月 30 日為 1540 萬美元。

Inventories increased by $3.9 million, or 68% to $9.5 million at September 30, 2022, from $5.7 million at September 30, 2021. The increase in inventories is attributable to the company's purchase of inventory to the security business of our Advanced Technology segment to maintain sufficient stock on hand for sales to overcome recent supply chain delays and issues.

存貨從 2021 年 9 月 30 日的 570 萬美元增加 390 萬美元，即 68%，至 2022 年 9 月 30 日的 950 萬美元。存貨增加是由於公司購買先進技術部門的安全業務存貨以維持手頭有足夠的庫存用於銷售，以克服最近的供應鏈延誤和問題。

I will now turn the call back over to Saagar for a review of our 2023 outlook.

我現在將把電話轉回 Saagar，以審查我們的 2023 年展望。

Thank you, Paul. In summary, with our restructuring complete and strong performance for Vicon and AIS, we are well positioned to create long-term value for our shareholders. Looking ahead, we believe revenues for Vicon Industries based on our current demand should increase by approximately 16% to $28 million for fiscal year '23, given the launch of our AI-based analytics solution, more improvements to our core product Valerus, as well as additional sales opportunities.

謝謝你，保羅。總之，隨著我們重組的完成以及 Vicon 和 AIS 的強勁表現，我們有能力為股東創造長期價值。展望未來，鑑於我們基於 AI 的分析解決方案的推出、對我們核心產品 Valerus 的更多改進以及作為額外的銷售機會。

We also believe AIS will continue to expand revenues by approximately 3% to $21.8 million driven by continued strength in the Industrial Services market. Additionally, based on steps the company has taken during this fiscal year 2023, gross profit margin percent for Vicon is expected to increase to approximately 48%. Similarly, based on operational improvements made, we believe gross profit margin percent for AIS is expected to improve to approximately 34% for the fiscal year 2023 for AIS.

我們還相信，在工業服務市場持續走強的推動下，AIS 的收入將繼續增長約 3% 至 2180 萬美元。此外，根據公司在 2023 財年採取的措施，Vicon 的毛利率預計將增至約 48%。同樣，基於所做的運營改進，我們認為 AIS 的毛利率百分比預計將在 2023 財年提高至約 34%。

We have taken steps to reduce expenses at the Cemtrex corporate level as well to drive improvement in our overall operating expenses. With all the combined actions taken, we believe the operating loss over the next four quarters to be under $2.5 million. The effects of these changes will be partially demonstrated in our December quarter performance due to the timing of the restructuring. And we expect our March quarter performance to reflect the improvement more fully.

我們已採取措施減少 Cemtrex 公司層面的開支，並推動我們整體運營開支的改善。通過採取所有綜合行動，我們相信未來四個季度的運營虧損將低於 250 萬美元。由於重組的時間安排，這些變化的影響將部分體現在我們 12 月季度的業績中。我們預計我們 3 月季度的業績將更充分地反映這一改善。

We also believe that we can reduce inventory by more than $1.5 million over the course of fiscal year '23 as we have seen supply chain constraints improve. This will allow us to offset the cash loss from the expected operating loss over the next couple of quarters by the cash obtained from the reduction in inventory, reducing the burden on our overall cash position. With approximately $10 million in cash on hand and a dramatic reduction in expenses, we believe we have sufficient capital in the near term to focus on executing on our roadmap, both financially and operationally without the need for immediate capital.

我們還相信，我們可以在 23 財年期間減少超過 150 萬美元的庫存，因為我們已經看到供應鏈限制有所改善。這將使我們能夠通過減少庫存獲得的現金來抵消未來幾個季度預期經營虧損的現金損失，從而減輕我們整體現金狀況的負擔。憑藉手頭約 1000 萬美元的現金和大幅減少的開支，我們相信我們在短期內有足夠的資金來專注於執行我們的路線圖，無論是在財務上還是在運營上，而不需要立即獲得資金。

Our expectation is that the company reach a positive operating income in fiscal year 2024. We continue to work to position the company on a path to a sustainable financial model and for long-term growth, which we believe will provide long-term value for our shareholders. I look forward to providing our shareholders with further updates in the near term.

我們的預期是公司在 2024 財年實現正營業收入。我們將繼續努力使公司走上可持續財務模式和長期增長的道路，我們相信這將為我們提供長期價值股東。我期待在短期內為我們的股東提供進一步的更新。

I thank you all for attending. And now we'd like to open it up for questions. Operator?

我感謝大家的出席。現在我們想公開提問。操作員？

(Operator Instructions) Jason Kolbert, Dawson James.

（操作員說明）Jason Kolbert，Dawson James。

Thanks, guys. Thanks for the update. And really appreciate some of the comprehensive detail in terms of the numbers. I just like to ask some big picture questions.

多謝你們。感謝更新。並且非常感謝數字方面的一些全面細節。我只是想問一些大問題。

When we think about Vicon versus AIS, it seems like the tremendous growth opportunity exists for Vicon, and AIS seems a little bit like a means to an end. So I'm just trying to understand how you're looking at the business, how you're looking at capital spending, and where you see the future growth coming from?

當我們考慮 Vicon 與 AIS 時，似乎 Vicon 存在巨大的增長機會，而 AIS 似乎有點像達到目的的手段。所以我只是想了解您如何看待業務，如何看待資本支出以及您如何看待未來的增長？

Yeah, sure. So with respect to organic growth, I think there's no question that Vicon is the more compelling near-term opportunity. The demand in the industry is pretty high for the need for physical security. And there's a lot of disruption taking place due to incumbent technology being replaced by next-generation technology, which creates an opportunity to take market share.

好，當然。因此，就有機增長而言，我認為毫無疑問 Vicon 是更具吸引力的近期機會。該行業對物理安全的需求非常高。由於現有技術被下一代技術取代，造成了很多破壞，這創造了搶占市場份額的機會。

So in a big picture, we see an opportunity to grow there more quickly. And I think in terms of where we'll be focusing our investment, that will certainly be driven on that side of the business.

因此，從大局來看，我們看到了在那裡更快發展的機會。而且我認為就我們將把投資重點放在何處而言，這肯定會在業務的這一方面得到推動。

I think with respect to AIS, the opportunities will be more driven by acquisitions. I think that with respect to AIS, there's more opportunity to gain scale through finding good acquisition opportunities.

我認為就 AIS 而言，機會將更多地由收購驅動。我認為，就 AIS 而言，有更多機會通過尋找良好的收購機會來擴大規模。

I think for the last couple of years, valuations have been unusually high relative to what we think is fair value for businesses of these types. And we're starting to see valuations come down. So I wouldn't say that we're sort of exclusively thinking about Vicon. I think we're looking at both businesses opportunistically and seeing opportunities to drive growth in both.

我認為在過去幾年中，相對於我們認為此類企業的公允價值，估值異常高。我們開始看到估值下降。所以我不會說我們只是在考慮 Vicon。我認為我們正在機會主義地看待這兩項業務，並看到推動這兩項業務增長的機會。

Okay. That's actually very helpful because what it's telling me is that you'll be opportunistic on AIS if you see the opportunity and it can build free cash flow, is that right?

好的。這實際上非常有幫助，因為它告訴我，如果你看到機會並且它可以建立自由現金流，你就會在 AIS 上投機取巧，對嗎？

That's right.

這是正確的。

Okay. And can you talk a little bit in terms of the Vicon and really some of the camera and intelligence software products? What gives you competitive edge given the fact that you're in such a highly competitive market? I'd like to understand a little bit about how your -- the installed base is looking at you, and what it's going to take to get kind of some of the new, bigger contracts that are out there?

好的。你能談談 Vicon 和一些相機和智能軟件產品嗎？鑑於您處於競爭如此激烈的市場中，是什麼給了您競爭優勢？我想了解一下您的安裝基礎如何看待您，以及獲得一些新的、更大的合同需要什麼？

Yeah, absolutely. So Vicon has been in the industry for 55 years. So we have a strong brand, right? So a lot of customers know us in the industry. And that really helps with our credibility and in terms of when we compete with other folks in the market. So first and foremost, people recognize us.

是的，絕對。所以 Vicon 已經在這個行業工作了 55 年。所以我們有一個強大的品牌，對嗎？所以很多客戶都知道我們在這個行業。這確實有助於提高我們的信譽以及我們何時與市場上的其他人競爭。所以首先，人們認可我們。

And then secondly, we spend a lot of the last three years investing in our product portfolio quite substantially. So our products, when you compare them against our competitors, they are right there as far as competitive advantage in terms of pricing, in terms of the feature set. And we continue to invest in the product line to ensure that it gets there.

其次，我們在過去三年中花費了大量時間投資於我們的產品組合。因此，當您將我們的產品與我們的競爭對手進行比較時，就定價和功能集方面的競爭優勢而言，它們就在那裡。我們繼續投資於產品線以確保它到達那裡。

We're also rolling out our AI analytics this month. And that's homegrown analytics that we've built, leveraging the latest AI technology out there. So a lot of it is really just the investments we've made starting to pay off and take advantage of the opportunities that are in the market today.

我們還將在本月推出我們的 AI 分析。這是我們利用最新的 AI 技術構建的本土分析。因此，其中很多實際上只是我們所做的投資開始獲得回報並利用當今市場上的機會。

So it's a combination of doing that on an ongoing basis. And then we've also made investments in people, right? So over the last 18 months, we've hired a number of really talented individuals from our competitors. We've made an announcement, near the end of the summer, where we brought on Haim. So Haim is really a tremendous product manager, has a great product mind, and helps to bring a lot of value from that perspective.

因此，這是持續進行的結合。然後我們也對人進行了投資，對吧？因此，在過去的 18 個月裡，我們從競爭對手那裡聘請了許多非常有才華的人。我們已經在夏末發布了一個公告，我們引進了 Haim。所以 Haim 確實是一位了不起的產品經理，擁有出色的產品思維，並從這個角度幫助帶來了很多價值。

And a number of the other folks that we've got, obviously, Shane, just recently joining as well. So all these guys have brought a lot of perspective and a lot of value from many of our competitors in terms of bringing best practices and helping us continue to chart a course that creates our own space in the market and competitive advantages. So that's, again, a lot of that.

顯然，Shane 最近也加入了我們的其他一些人。因此，所有這些人都從我們的許多競爭對手那裡帶來了很多觀點和很多價值，帶來了最佳實踐，並幫助我們繼續規劃路線，創造我們自己的市場空間和競爭優勢。所以，這又是很多。

The other thing is that we really just sell end-to-end solution. So many of our competitors, they're generally selling a portion of the solution, right? And Vicon is generally going to the market on a complete solution.

另一件事是我們真的只是銷售端到端的解決方案。我們的很多競爭對手，他們通常都在銷售解決方案的一部分，對嗎？ Vicon 通常會以完整的解決方案推向市場。

And a lot of the market, especially in the enterprise world, is looking for an end-to-end solution. And that's really how we differentiate ourselves. So it's really a combination of all of these things that is really helping us be competitive in the market and continue to drive sales growth.

許多市場，尤其是企業界，都在尋找端到端的解決方案。這就是我們真正與眾不同的方式。因此，真正幫助我們在市場上具有競爭力並繼續推動銷售增長的是所有這些因素的結合。

Yeah, perfect. Thank you so much. Really appreciate the update. Thanks, Saagar.

是的，完美。太感謝了。非常感謝更新。謝謝，薩加爾。

Sure.

當然。

Richard Arnold, Private Investor.

理查德阿諾德，私人投資者。

My question is directed to Mr. Wyckoff.

我的問題是針對威科夫先生的。

Yes, sir. What can I answer for you?

是的先生。我能為你回答什麼？

Do you know the cost to purchase and develop the assets that were divested and purchased by management led by Mr. Govil? That last was a quote from an article that divulged the divestiture.

您知道購買和開發由 Govil 先生領導的管理層剝離和購買的資產的成本嗎？最後引用了一篇洩露資產剝離的文章。

I don't know that figure off the top of my head. I can get back to you off this call and provide --

我不知道我腦海中浮現的那個數字。我可以在打完電話後回复你並提供——

Can you give me a roundabout number?

你能給我一個迴旋處的號碼嗎？

Cost to develop, probably in the neighborhood of $7 million.

開發成本可能在 700 萬美元左右。

And how much cash was received from Mr. Govil in his lead management by Cemtrex for those divested assets?

在 Cemtrex 的牽頭管理中，Govil 先生為這些剝離的資產收到了多少現金？

The deal was publicly disclosed. And it was a combination of cash and investment opportunity within the SmartDesk company and also royalties on their revenues.

該交易已公開披露。它是 SmartDesk 公司內部現金和投資機會的結合，也是他們收入的特許權使用費。

And how much cash was given to Cemtrex by Mr. Govil and his management people?

Govil 先生和他的管理人員給了 Cemtrex 多少現金？

I believe the amount was $85,000.

我相信金額是 85,000 美元。

So $7 million worth of assets were sold to him and his group?

所以價值700萬美元的資產被賣給了他和他的集團？

Well, I mean, your first question was how much the cost to develop those companies, not how much the assets were.

嗯，我的意思是，你的第一個問題是開發這些公司的成本是多少，而不是資產有多少。

And how much was the net asset value of the divested assets when purchased?

購買時剝離資產的資產淨值是多少？

About $1 billion.

大約 10 億美元。

So for $85,000, he got a million dollars' worth of assets, and then promises of something that may or may not happen.

因此，為了 85,000 美元，他獲得了價值 100 萬美元的資產，然後承諾了一些可能發生也可能不會發生的事情。

Yeah, so if I may interject. So, Richard, I could think I can sort of generally understand where you're going with it. So I'll say a couple of things. One is when the company explored options before the assets, we looked at a lot of different options. And these were all money-losing businesses. And so there were no buyers lining up for these things.

是的，如果我可以插話的話。所以，理查德，我想我可以大致理解你的想法。所以我要說幾件事。一個是當公司在資產之前探索選項時，我們研究了很多不同的選項。而這些都是虧本的生意。因此，沒有買家排隊購買這些東西。

So I want to be clear about that, that the opportunity to make swift changes to the company, they were not readily available for the company. Meaning that we approached different investment bankers, and we talked to different advisors about the various options.

所以我想明確一點，對公司做出迅速改變的機會，公司並不容易獲得。這意味著我們接觸了不同的投資銀行家，並與不同的顧問討論了各種選擇。

So because these companies were losing a lot of money, there wasn't an opportunity to get a lot of cash for them. So it's not like I'm getting a sweetheart deal here. There are no buyers lining up. I mean, that's the reality. Okay.

因此，由於這些公司虧損很多，因此沒有機會為他們獲得大量現金。所以這不像是我在這裡得到了甜心交易。沒有買家排隊。我的意思是，這就是現實。好的。

The second thing is the company's market cap was less than cash for a big part of most of 2022. And so when you think about the collection of seven different brands under the Cemtrex umbrella that is trading less than cash, the value of these businesses under this umbrella wasn't a -- the market was not recognizing that value. And so the company had to make some strategic decisions and we had to do it quickly.

第二件事是，在 2022 年的大部分時間裡，該公司的市值低於現金。因此，當您考慮 Cemtrex 旗下七個交易低於現金的不同品牌時，這些業務的價值低於這把保護傘不是——市場沒有認識到這個價值。因此，公司必須做出一些戰略決策，而我們必須迅速做出決策。

And this was discussed at the Board level in terms of we need to make some strategic changes about what we're doing here. And that was discussed at length and the company made an announcement around this in the (multiple speakers)

這在董事會層面進行了討論，我們需要對我們在這裡所做的事情進行一些戰略調整。對此進行了詳細討論，公司在（多名發言人）中就此發表了聲明

I know that the announcement was on [11 '22]. I may be (multiple speakers) here.

我知道公告是在 [22 年 11 月] 上發布的。我可能會（多位發言者）在這裡。

No. That's not what I'm referring to you.

不，那不是我指的你。

So [protect] me if I don't make myself clear. You had a vote of the Board of Directors from which you abstained. Would it not have been better to had shareholders vote on these asset purchases and you abstaining from that vote?

所以，如果我不說清楚的話，[保護]我。你在董事會的投票中投了棄權票。讓股東對這些資產購買進行投票而你投棄權票不是更好嗎？

Richard Mishkin, GRF Capital Investors.

GRF Capital Investors 的理查德·米甚金 (Richard Mishkin)。

Yeah. So good afternoon, sirs. I have a couple of mundane questions, not actually about the operating of the company but about some of the stock transaction. So hopefully, you can help me.

是的。下午好，先生們。我有幾個普通的問題，實際上不是關於公司的運營，而是關於一些股票交易。所以希望你能幫助我。

I've been an investor or I've invested with clients in Vicon since around 2000. So I have many years working with Vicon and Cemtrex with the preferred stock. So do you have just a moment to answer a couple of quick questions for me, please?

自 2000 年左右以來，我一直是 Vicon 的投資者或與客戶一起投資。因此，我與 Vicon 和 Cemtrex 合作多年，持有優先股。那麼，您是否有時間為我回答幾個簡短的問題，好嗎？

I think those kinds of questions would be best directed offline. I'm not sure that this would be the best form for that. But you can certainly --

我認為這類問題最好離線進行。我不確定這是最好的形式。但你當然可以——

I certainly agree with that. But I've made no less than five attempts to contact your company directly and through Investor Relations. And I never received a call back. So I thought I just asked these two questions. And then maybe if somebody can get back to me some time, that would be fine. But approximately, what percentage of Vicon do you own, the contracts owned?

我當然同意這一點。但我已經嘗試過不少於五次直接和通過投資者關係聯繫貴公司。我從來沒有收到回電。所以我想我只是問了這兩個問題。然後也許如果有人能在某個時間回复我，那會很好。但大約，你擁有多少百分比的 Vicon，所擁有的合同？

Around 95%.

大約 95%。

How much?

多少？

Around 95%.

大約 95%。

95%. And the 5% of the outstanding shares that are still out there, I guess you'd call them minority, very minority holders. What could be done to placate them and make it so you own 100% of Vicon?

95%。還有 5% 的流通股，我想你會稱他們為少數股東，非常少數股東。可以做些什麼來安撫他們並讓你擁有 100% 的 Vicon？

I think that's a question best discussed offline. I'm not sure that that is necessarily in the cards. But I think it's something we should -- if you had a further discussion about it, it would be discussed offline.

我認為這是一個最好離線討論的問題。我不確定這是否一定存在。但我認為這是我們應該做的事情——如果你對此有進一步的討論，它會在線下進行討論。

Well, because there were some Vicon holders that were asked to participate in the secondary, never saw daylight since. Obviously, I've got some sour grapes here but not going on, I understand. One question, next question is Cemtrex preferred stock. In the year 2021, as a part of a dividend, you settled your dividend obligation in unregistered shares of stock. Is there a reason for that?

好吧，因為有一些 Vicon 持有者被要求參加中學，從那以後就再也沒有見過天日。顯然，我在這裡有一些酸葡萄，但沒有繼續，我明白。第一個問題，下一個問題是 Cemtrex 優先股。在 2021 年，作為股息的一部分，您以未註冊股票結算了股息義務。這是有原因的嗎？

Yeah, it was a little bit of a mix up. That has been sorted out now, actually. So if you reach out to Paul after this call, there's an opinion available, and through our transfer agent, we can get those shares unrestricted. So that's my --

是的，有點混亂。實際上，現在已經解決了。因此，如果您在這次電話會議後聯繫保羅，我們可以提供意見，並且通過我們的過戶代理，我們可以不受限制地獲得這些股份。這就是我的——

Yes, I'd appreciate that. It is causing havoc in my account. So at this point, we get charged $50 a year to hold it now.

是的，我會很感激。這對我的帳戶造成了嚴重破壞。所以在這一點上，我們每年要支付 50 美元才能持有它。

Yeah, we can address that.

是的，我們可以解決這個問題。

You could contact our transfer agent. The transfer agent is ClearTrust.

你可以聯繫我們的過戶代理。轉讓代理是 ClearTrust。

I've done that already. They told me I need to hire an attorney, get an opinion, and pay hundreds and hundreds of dollars to get it done.

我已經這樣做了。他們告訴我，我需要聘請律師，徵求意見，並支付成百上千美元才能完成。

The opinion is now in their possession. I'm not sure how long ago that was, but that's all there.

他們現在掌握了意見。我不確定那是多久以前的事了，但僅此而已。

[Steven Whitner], Private Investor.

[Steven Whitner]，私人投資者。

Yeah. My questions were actually along the lines of the last two investors. But I'm really concerned that early as of fall of 2021, you're painting a rosy picture for your roadmap for the SmartDesk, and your AR/VR products, namely the Star Force game. And then I think it was around February, you made another $500,000 investment in Masterpiece Studios, making that a $1 million investment right there. And then as early as May, you announced you're going to divest in all of these business units and focus on Vicon and AIS.

是的。我的問題實際上與最後兩位投資者的思路一致。但我真的很擔心，早在 2021 年秋季，您就會為 SmartDesk 和 AR/VR 產品（即 Star Force 遊戲）的路線圖描繪出美好的畫面。然後我想是在 2 月左右，你又向 Masterpiece Studios 投資了 50 萬美元，就在那裡投資了 100 萬美元。然後早在 5 月份，您就宣布將剝離所有這些業務部門，專注於 Vicon 和 AIS。

So I'm just a little perplexed why your lack a foresight when you're painting a rosy picture in the fall. And then less than six months later, you're going, no, no, that isn't working. We got to -- it just seems like a real lack of foresight. Or was it the SEC action against you and your father and the company that was tempering your decision? Or could you just expand on your reasoning to divest in those?

所以我只是有點困惑，為什麼你在秋天描繪了一幅美好的圖畫時缺乏遠見。然後不到六個月後，你會說，不，不，那是行不通的。我們必須——這似乎真的缺乏遠見。或者是美國證券交易委員會對你和你父親以及公司採取的行動緩和了你的決定？或者你能不能擴大你的推理來剝離這些？

Sure. So there are a couple of reasons for that. I think the primary driver for that was really that -- well, I won't say primary -- and I appreciate the question, Steve. The company, as an owner of seven brands, doing many different things did not get the value attributed for all of those seven things simultaneously.

當然。所以有幾個原因。我認為這的主要驅動力確實是 - 好吧，我不會說主要 - 我很欣賞這個問題，史蒂夫。該公司擁有七個品牌，做許多不同的事情並沒有同時獲得所有這七件事的價值。

And I think my impression after speaking with many investors was that they didn't understand the story. And it was very complicated to A, associate a value with the business and appreciate everything that we were doing. And as a result, this was reflected in the Cemtrex stock price.

我認為在與許多投資者交談後，我的印像是他們不理解這個故事。這對 A 來說非常複雜，將價值與業務聯繫起來並欣賞我們所做的一切。結果，這反映在 Cemtrex 的股價中。

And in bringing on a new Board, this was discussed in great length at the Board that bringing better focus to what we're doing as an organization would have a direct impact on creating shareholder value. So from 2021 into the end of 2022, the share price was declining substantially despite all of these exciting things that we were doing.

在組建新董事會時，董事會對此進行了長時間的討論，即更好地關注我們作為一個組織所做的事情將對創造股東價值產生直接影響。因此，從 2021 年到 2022 年底，儘管我們做了所有這些令人興奮的事情，但股價仍在大幅下跌。

So it wasn't sort of my decision alone unilaterally just changing at a whim here. This was a combination of a result of recognizing and seeing what was actually taking place with respect to the overall business, the share price, and so forth.

所以這不是我一個人的決定，單方面只是一時興起改變。這是認識和了解整體業務、股價等方面實際發生的情況的綜合結果。

The other thing I just really want to point out is, all of the things that we've liked about SmartDesk and VR, those are long-term opportunities, and they will consume a lot of cash. And so if, in order to do them, the company needs to continually be raising capital, which means more dilution. And if the stock price is going down, it just makes that more and more difficult.

我真正想指出的另一件事是，我們喜歡 SmartDesk 和 VR 的所有東西，這些都是長期機會，它們會消耗大量現金。因此，如果為了做到這些，公司需要不斷籌集資金，這意味著更多的稀釋。如果股價下跌，只會讓這變得越來越困難。

So I mean, we viewed where the stock price is, is a referendum from shareholders that the direction that we're going in is not the right one. And we needed to get back to focusing on where we can drive cash flow, and where we can drive growth in the nearest amount of time. And that meant focusing on things with the most upside in the nearest amount of time. And that would not result in more and more endless dilution for shareholders. Does that make sense?

所以我的意思是，我們看到股價在哪裡，是股東的全民公投，我們前進的方向是不正確的。我們需要重新關注我們可以在哪些方面推動現金流，以及在哪些方面可以在最近的時間內推動增長。這意味著在最近的時間內專注於最有利的事情。這不會導致股東越來越多地被無休止地稀釋。那有意義嗎？

No, it does. I just want to make sure that this time -- I mean, your last stock split in June 2019, you've done 8:1, and then you refocused on SmartDesk, and you started calling it your flagship product. And you just kept throwing out, teasing everybody about some VR game that never happened. And then you got rid of ROB Cemtrex. And then you sold Griffin Filters to your father.

不，確實如此。我只是想確保這一次——我的意思是，你在 2019 年 6 月的最後一次股票拆分，你完成了 8:1，然後你重新專注於 SmartDesk，你開始稱它為你的旗艦產品。而你只是不停地拋出，取笑大家關於一些從未發生過的 VR 遊戲。然後你擺脫了 ROB Cemtrex。然後你把 Griffin Filters 賣給了你父親。

And then since then you reported $50 million in losses. You're carrying $20 million in debt. And just want to make sure that you do it right this time because [I've been investing] since 2014. We're looking at them at a third reverse split. And can you say what that count is going to be, how big it's going to be?

然後從那以後你報告了 5000 萬美元的損失。你背負著 2000 萬美元的債務。並且只是想確保這次你做對了，因為 [我一直在投資] 自 2014 年以來。我們正在第三次反向拆分中查看它們。你能說說這個數字是多少，有多大嗎？

No, we don't know what the rate is going to be right now.

不，我們不知道現在的利率是多少。

So my initial investment is pennies on the dollar. So it's basically a tax write-off. But I would like to see some accountability for how you've been running this company. I mean, it's -- and then now the SEC filing comes up where you cost the company another $2.2 million.

所以我最初的投資是一分錢一分貨。所以這基本上是稅收沖銷。但我希望看到您對這家公司的運營方式負起責任。我的意思是，它是——然後現在美國證券交易委員會的文件出現了，你又讓公司損失了 220 萬美元。

And I mean, is that factor in anywhere? Are you going to repay that or is that just a write-off for the company? I mean, does SEC describes it in their filing as fraudulent conduct? So I mean, I would like you to comment on that a little bit.

我的意思是，這個因素在任何地方嗎？您是要償還這筆款項還是只是對公司進行註銷？我的意思是，SEC 是否在他們的文件中將其描述為欺詐行為？所以我的意思是，我希望你對此發表一點評論。

Yeah, I can't really comment on the SEC matter. I think everything that we had to say has been already disclosed around that matter. So there's nothing really more for me to add. It's a situation where anytime you get into a legal battle with the SEC, you have to be mindful of running a legal bill, and all of the implications that come with that as a distraction to running the core business for a company of our size. So that's really all I'm going to comment on that.

是的，我真的不能對 SEC 的事情發表評論。我想我們不得不說的一切都已經圍繞這件事披露了。所以我真的沒有什麼要補充的了。在這種情況下，無論何時你與美國證券交易委員會發生法律糾紛，你都必須注意運行法律法案，以及隨之而來的所有影響，因為它會分散我們這樣規模的公司經營核心業務的注意力。這就是我要對此發表評論的全部內容。

But I think that based on the direction we're going right now, we've taken an enormous amount of steps to move this company in the right direction. We have a new Board. All the new Board members, they came to our auditors. We moved and shed all of our money-losing operations. We're focused on our two very well-established businesses with product-market fit that have real opportunity for growth and opportunities in this market.

但我認為，根據我們現在的發展方向，我們已經採取了大量措施來推動這家公司朝著正確的方向發展。我們有一個新董事會。所有新的董事會成員，他們都來找我們的審計師。我們搬遷並擺脫了所有虧損的業務。我們專注於我們的兩個非常成熟的業務，它們的產品市場契合，在這個市場上有真正的增長機會和機會。

And we're very much focused on driving growth and making improvement in the overall business and helping that translate to create more value for shareholders. And I think everything that we've been doing now over the last 12 to 15 months, I think has all been under that same guide and direction. And we're going to continue to do that to turn this around. And that's really what we're 100% focused on.

我們非常專注於推動增長和改善整體業務，並幫助其轉化為股東創造更多價值。我認為我們在過去 12 到 15 個月裡所做的一切，我認為都是在同樣的指導和指導下進行的。我們將繼續這樣做以扭轉局面。而這正是我們 100% 關注的重點。

There are no further questions at this time. I would like to now turn the call back over to Mr. Govil for his closing remarks.

目前沒有其他問題。我現在想將電話轉回給 Govil 先生，聽取他的結束語。

Thank you, operator. I would like to thank each of you for joining our earnings conference call today and look forward to continuing to update you on our ongoing progress and growth. If we were unable to answer any of your questions, please feel free to reach out to our IR firm, MZ Group. We'd be more than happy to assist. Thank you.

謝謝你，運營商。我要感謝你們每個人今天參加我們的收益電話會議，並期待繼續向您介紹我們正在進行的進展和增長。如果我們無法回答您的任何問題，請隨時聯繫我們的 IR 公司 MZ Group。我們非常樂意提供幫助。謝謝。