Digital Ally Inc (DGLY) 2023 Q1 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Digital Ally, Inc. Q1 2023 Operating Results Conference Call. (Operator Instructions)

早上好，女士們、先生們，歡迎參加 Digital Ally, Inc. 2023 年第一季度運營業績電話會議。 （操作員說明）

This conference call may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We may use words and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters rather represent forward-looking statements.

本電話會議可能包含 1933 年《證券法》第 27A 條和 1934 年《證券交易法》第 21E 條含義內的前瞻性陳述。我們可能使用預測或表明未來事件和趨勢的詞語和其他表達方式，以及與歷史問題無關，而是前瞻性陳述。

These forward-looking statements are based largely on our expectations or forecasts of future events, can be affected by inaccurate assumptions and are subject to various business risks and known and unknown uncertainties, a number of which are beyond our control.

這些前瞻性陳述主要基於我們對未來事件的預期或預測，可能受到不准確假設的影響，並受到各種業務風險以及已知和未知的不確定因素的影響，其中許多因素超出了我們的控制範圍。

Therefore, actual results could differ materially from the forward-looking statements expressed in this conference call, and readers are cautioned not to place undue reliance on such forward-looking statements.

因此，實際結果可能與本次電話會議中表達的前瞻性陳述存在重大差異，請讀者不要過分依賴此類前瞻性陳述。

We generally do not publicly update or revise any forward-looking statements expressed in this conference call, whether as a result of new information, future events or otherwise. There can be no assurance that the forward-looking statements contained in this document will, in fact, transpire or prove to be accurate.

我們通常不會公開更新或修改本次電話會議中表達的任何前瞻性陳述，無論是由於新信息、未來事件還是其他原因。無法保證本文件中包含的前瞻性陳述實際上會發生或被證明是準確的。

I would like to remind everyone that this call is being recorded on May 16, 2023.

我想提醒大家，這次通話的錄音時間是2023年5月16日。

I'll now turn the conference over to Stan Ross. Please go ahead.

我現在將會議交給斯坦·羅斯。請繼續。

Thank you, everybody, for joining us today. I have with me, Brody Green, who is the company's President. He will be going over some of the numbers. He's also the acting CFO as of now as our dear friend, after almost 17 years, Tom Heckman, has decided to retire and take a slower pace nowadays. So anyways with me is Brody.

謝謝大家今天加入我們。與我同行的還有公司總裁布羅迪·格林 (Brody Green)。他將檢查一些數字。他現在還是代理首席財務官，因為我們親愛的朋友，在工作近 17 年後，湯姆·赫克曼 (Tom Heckman) 決定退休並放慢腳步。無論如何，布羅迪和我在一起。

Brody will be covering the numbers, going into quite a bit of detail there and then letting you obviously dig a little bit more into this in regards to the Q&A.

布羅迪將涵蓋這些數字，其中涉及相當多的細節，然後讓您在問答方面顯然更深入地了解這一點。

I'm excited to talk to you a little bit about where we're at in regards to the relationship of our strategic opportunities that are out there, as we've talked and had mentioned and went public with in regards to a possible spinout or another avenue that would help define, I guess, some of the companies that are under the Digital Ally umbrella and hopefully give a lot more clarity to the excitement and valuations within those, including a recent event that we had that will show up in the second quarter's numbers, but we just finished with our very first Kustom 440 concert that was put together and also utilized our ticketing platform as well. So I'll cover that in a little more detail after Brody goes through the numbers and I'll go from there. Anyways, Brody?

我很高興能與您談談我們在現有戰略機會關係方面的進展，正如我們已經討論過、提到過並公開討論可能的分拆或我想，這將有助於定義數字盟友旗下的一些公司，並希望能夠更清晰地闡明這些公司的興奮點和估值，包括我們最近舉辦的一場活動，該活動將在第二部分中出現季度數字，但我們剛剛完成了我們的第一場 Kustom 440 音樂會，該音樂會也使用了我們的票務平台。因此，在布羅迪瀏覽完這些數字後，我將更詳細地介紹這一點，然後我將從那裡開始。無論如何，布羅迪？

Yes. Thanks, Stan. And like we're happy to talk to everybody again. I know it's only been about 45 days since our last call. So looking at the -- as I'm looking through the balance sheet, again, you can see there's not a -- there's not many dramatic changes as our total assets are at $55.5 million relative to $56.7 million at year-end. Similarly, with total liabilities they're pretty constant with year-end as well, there's $25 million. So our total stockholder equity remains relatively healthy at $30 million that are above.

是的。謝謝，斯坦。就像我們很高興再次與大家交談一樣。我知道距我們上次通話僅過去 45 天左右。因此，當我再次查看資產負債表時，您會發現並沒有發生太大的變化，因為我們的總資產為 5550 萬美元，而年底為 5670 萬美元。同樣，到年底負債總額也相當穩定，為 2500 萬美元。因此，我們的股東權益總額保持在 3000 萬美元以上的相對健康水平。

In the equity section, obviously, not much has transpired during Q1, a couple of issuances and we also did our reverse stock split, which I'll get into here shortly.

在股票部分，顯然，第一季度沒有發生太多事情，發行了幾次股票，我們還進行了反向股票分割，我很快就會在這裡討論。

On the income statement side, revenues were still higher than -- I mean, with all these acquisitions, you can see our revenues continue to stay fairly high compared to where we were a couple of years ago. I know we're down relative to Q1 of '22, but still $7.7 million in total revenue for Q1 2023.

在損益表方面，收入仍然高於——我的意思是，通過所有這些收購，你可以看到我們的收入與幾年前相比繼續保持相當高的水平。我知道我們相對於 22 年第一季度有所下降，但 2023 年第一季度的總收入仍為 770 萬美元。

Gross profit, 20% gross profit, which is much better than we looked at in Q4. So the changes we talked about during our last call have obviously been effective, and we'll continue to make sure those are staying in effect and even more so enhancing our gross profit as we move along here throughout 2023.

毛利潤，20%的毛利潤，比我們第四季度看到的要好得多。因此，我們在上次電話會議中討論的變化顯然是有效的，我們將繼續確保這些變化保持有效，更重要的是，在我們在 2023 年繼續前進的過程中，提高我們的毛利潤。

You can see an operating loss of $6.2 million -- I mean, an improvement over 2022, obviously not where we want to be. So we're going to continue to work on that and make changes as fast as we can.

你可以看到運營損失為 620 萬美元——我的意思是，比 2022 年有所改善，顯然不是我們想要的結果。因此，我們將繼續努力並儘快做出改變。

Stockholders. Yes, stockholders' equity side, we're sitting at 2.7 million shares outstanding. We have 200,000 authorized, so plenty of room there. And we -- as I mentioned, we did the reverse stock split back on February 6. So we did 20-1 split, as we talked about at the year-end call with very few options and warrants left out there right now.

股東。是的，就股東權益而言，我們有 270 萬股流通股。我們有 200,000 個授權，所以有足夠的空間。正如我所提到的，我們在 2 月 6 日進行了反向股票分割。所以我們進行了 20-1 的分割，正如我們在年終電話會議上談到的那樣，目前只剩下很少的期權和認股權證。

At quarter end, there was only 53,000 options outstanding and 39,000 warrants. So cleaning all those up, and they'll run their course here shortly. I think there's only -- they'll all go away at the end of June or July on the warrant side.

截至季度末，僅有 53,000 份未到期期權和 39,000 份認股權證。所以清理掉所有這些，它們很快就會在這裡運行。我認為只有——他們會在六月底或七月的認股權證方面全部消失。

We're excited to see our deferred revenue number as we continue to talk about -- it just continues to grow. Q1 2022, that number was sitting at $5 million, and now we're looking at $9 million at Q1 2023. So nearly doubled, and we're excited to have that number out there and just -- it raises our floor every quarter for what our sales number will be. So it's nice to have that number continue to grow with the subscriptions we've put in place and a majority of those are 5-year subscriptions. So I think our total subscriptions are well above 200,000 subscriptions now, and that's departments -- or sorry, 200 subscriptions, so that's probably up at 250 at this point. And those are departments. Those aren't units. So those subscriptions can range from 1 to several hundred in-car, body-worn camera. So lot of deferred revenue sitting out there, which is nice, and we love seeing that.

當我們繼續談論時，我們很高興看到我們的遞延收入數字——它還在繼續增長。 2022 年第一季度，這個數字為 500 萬美元，現在我們預計 2023 年第一季度為 900 萬美元。幾乎翻了一番，我們很高興能有這個數字，而且每個季度都會提高我們的底線我們的銷售數字是多少。因此，很高興這個數字隨著我們推出的訂閱而繼續增長，其中大部分是 5 年期訂閱。所以我認為我們的訂閱總數現在遠高於 200,000 個訂閱，這是部門 - 或者抱歉，是 200 個訂閱，所以目前可能會增加到 250 個。這些都是部門。這些不是單位。因此，這些訂閱的範圍從 1 到數百個車載隨身攝像頭不等。有這麼多的遞延收入，這很好，我們喜歡看到這一點。

On the segment side, Video Solutions did about $1.9 million in revenue Medical Billing revenue cycle management did $1.8 million and the Entertainment side did $ 4 million. And we're excited to see what happens in Q2 with all of those, especially on the entertainment side, as Stan mentioned, the concert concluding this past weekend, which was a success, and I'll let him go in more detail on that.

在細分市場方面，視頻解決方案的收入約為 190 萬美元，醫療賬單收入周期管理的收入為 180 萬美元，娛樂方面的收入為 400 萬美元。我們很高興看到第二季度發生的所有這些事情，特別是在娛樂方面，正如斯坦提到的，上週末結束的音樂會取得了成功，我會讓他更詳細地介紹這一點。

Depreciation and amortization for the quarter was about [$543,000]. So those are noncash items that flow through the P&L. So those -- we can calculate EBITDA at another time. One last comment I have, and then I'll turn it back over to Stan. I just wonder if subsequent event was the convertible note we issued and filed an 8-K on. So it was for $3 million of convertible note at $550. So more detail within the 10-Q as well as an 8-K filed at that issuance. So feel free to look into that. I just want to make you guys all aware of it, as we have already.

該季度的折舊和攤銷約為[543,000 美元]。因此，這些是流經損益表的非現金項目。因此，我們可以在其他時間計算 EBITDA。我的最後一條評論，然後我會將其轉回給斯坦。我只是想知道後續事件是否是我們發行並提交 8-K 的可轉換票據。因此，這是 300 萬美元的可轉換票據，價格為 550 美元。因此，在 10-Q 以及該發行時提交的 8-K 中提供了更多詳細信息。所以請隨意調查一下。我只是想讓你們都意識到這一點，就像我們已經意識到的那樣。

Outside of that, Stan, turning back over to you.

除此之外，斯坦，轉向你。

Yes. Thanks, Brody. And as I said, the 10-Q is filed with all the details out there. But I think really what everyone's been curious about and a lot of the e-mails, a lot of the calls I get is sort of the process that we've been going through since we made the announcement that we were looking at spinning off the Entertainment division. And of course, the Entertainment division will include the Ticketing company, the Production company and the Aviation company. And so that is still in the process. Obviously, we needed to have the year-end and the quarterly financials done. And with that being completed, we'll do a little bit of fine-tuning in regards to the 2021 (inaudible) numbers needed for TicketSmarter since we acquired it in September of '21. We need to make sure they just button up the first 8 months of 2021.

是的。謝謝，布羅迪。正如我所說，10-Q 中包含所有詳細信息。但我認為實際上每個人都好奇的是，我收到的很多電子郵件和電話都是自從我們宣布我們正在考慮分拆以來我們一直在經歷的過程。娛樂事業部。當然，娛樂部門將包括票務公司、製作公司和航空公司。所以這仍在進行中。顯然，我們需要完成年終和季度財務報告。完成該工作後，自 21 年 9 月收購 TicketSmarter 以來，我們將對 TicketSmarter 所需的 2021 年（聽不清）數字進行一些微調。我們需要確保他們妥善處理 2021 年的前 8 個月。

And they were at a point where we're in a position to go ahead and act upon whatever makes the most sense as far as a strategic move, whether it be a spinoff or some other avenues that may present themselves to us. So excited to be where we're at now, excited to hopefully be in a position in the coming days to define what direction we are going to go into. But even more important from that perspective is the launch that Kustom Entertainment has had.

現在我們正處於這樣的位置：我們可以繼續採取任何最有意義的戰略舉措，無論是分拆還是其他可能出現的途徑。我們很高興能達到現在的水平，很高興希望在未來幾天能夠確定我們要進入的方向。但從這個角度來看，更重要的是 Kustom Entertainment 的推出。

Most recently, we did a concert here in our backyard here in Kansas City, and weather could not have been more of an interest in regards to how this was going to play out because we seem to have continued forecast of rain in the future -- rain, rain. It's going to rain on our particular festival day. And as it got closer, literally within less than 48 hours, it had cleared up. And the weather forecast was very favorable for this festival.

最近，我們在堪薩斯城的後院舉辦了一場音樂會，天氣對於這場音樂會將如何進行非常感興趣，因為我們似乎一直預測未來會下雨——雨，雨。在我們特別的節日那天會下雨。當它越來越近時，實際上不到 48 小時，天氣就放晴了。而且天氣預報對這個節日非常有利。

As matter of fact, on the last day, there were almost 500 tickets. So well over -- almost 10% of the -- those that attended bought -- showed up and bought at the door.

事實上，最後一天，門票已經接近500張。幾乎 10% 的參加者都出現在門口購買了。

So we did hit a number close to 7,500 tickets sold, which was, I think, our bogey was somewhere between 6,000 and 8,000. So we're on the high side of that, very pleased with that. The food and beverage as we try to be able to be in a position to control a lot of that. We believe the numbers are going to come in above what expectations were on that as well. So all in all, just a very, very successful event. You can get on the website. It's countryrootsfest.com and just maybe see a little bit of how things did play out, whether it be on a Facebook or Instagram, just a tremendous amount of people showed up, the acts that we had from start to finish were fantastic. A very good atmosphere for as the crowd. And we look forward to doing a lot more of these.

所以我們確實賣出了接近 7,500 張門票，我認為，我們的目標是在 6,000 到 8,000 張之間。所以我們對此非常滿意。我們試圖能夠控制很多食品和飲料。我們相信這些數字也將超出預期。總而言之，這是一次非常非常成功的活動。你可以到網站上獲取。這是 Countryrootsfest.com，也許可以看到一些事情是如何進行的，無論是在 Facebook 還是 Instagram 上，都有大量的人出現，我們從開始到結束的表演都很棒。作為人群的氣氛非常好。我們期待做更多這樣的事情。

And that's the whole thing I was trying to tell you and explain a little bit about our Ticketing platform and the Production platform is that we actually can sit there and blow fire on our own -- gas on our own fire by doing these type of festivals and concerts that helps the ticketing company and obviously with us having the production side of it. We reaped the benefits from that as well.

這就是我想告訴你的全部內容，並解釋一下我們的票務平台和製作平台，我們實際上可以坐在那裡，通過舉辦這些類型的節日，自己自吹自擂——自燃。音樂會對票務公司有幫助，顯然我們也有製作方面的幫助。我們也從中獲得了好處。

So again, as we mentioned last year, TicketSmarter did $21 million roughly. And if we're sitting there and we're continuing to do, let's say, half a dozen more concerts this year with those kind of revenues, with those additional ticketing revenue that it will generate, you're going to see that particular entity. When I say that meaning custom entertainment go from $21 million to possibly close to $30 million. So by just doing this ourselves. So I'm very excited, very pleased and impressed with our partners on this deal, the sponsors that we had were very recognizable names, and we look forward to being able to announce quite a few up and coming events. And hopefully, maybe one of them is in your backyard and you can actually come out and see it firsthand. So been exciting on that side of things.

正如我們去年提到的，TicketSmarter 的銷售額約為 2100 萬美元。如果我們坐在那裡，我們繼續舉辦，比方說，今年再舉辦六場音樂會，帶來這樣的收入，以及它將產生的額外門票收入，你會看到那個特定的實體。當我說這意味著定制娛樂的價值從 2100 萬美元到可能接近 3000 萬美元。所以我們自己就可以做到這一點。因此，我對這筆交易的合作夥伴感到非常興奮、非常高興和印象深刻，我們的讚助商都是非常知名的名字，我們期待能夠宣布一些即將舉行的活動。希望其中一個就在您的後院，您實際上可以出來親眼目睹。所以在這方面一直令人興奮。

Continue to see very, very nice opportunities in regards to the Video Solutions division. Probably the biggest of all would be on the commercial side of our products. As all of us know, being around over 17 years, we have a very good foothold when it comes to the law enforcement side of things. And now we seem to be getting very well established and very well received feedback in regards to the new EVO commercial system that we have out there for in-car system and also the uniqueness of being able to use even some of the body cameras in the commercial division as well.

繼續看到視頻解決方案部門非常非常好的機會。其中最大的可能是我們產品的商業方面。眾所周知，我們已有 17 年多的歷史，在執法方面擁有非常好的立足點。現在，我們似乎已經非常成熟，並且對於我們為車載系統提供的新 EVO 商業系統以及甚至能夠在車內使用某些隨身攝像頭的獨特性，我們已經建立了良好的基礎並收到了很好的反饋。商業部門也是如此。

So we've got a lot of T&Es out there right now that we look to hopefully come to fruition fairly soon. We have announced those orders. They are sizable. And so we'll continue to stay on top of them. And obviously, when they come through, we'll be making an announcement of those.

因此，我們現在已經有很多 T&E，希望很快就能實現。我們已經宣布了這些訂單。它們很大。因此，我們將繼續保持領先地位。顯然，當它們通過時，我們將發布這些消息。

So love to go ahead and open up the floor for any questions that may be out there. So let's do Q&A.

因此，請繼續討論可能存在的任何問題。那麼我們來做一下問答吧。

(Operator Instructions) First question comes from Allen Klee at Maxim Group.

（操作員說明）第一個問題來自 Maxim Group 的 Allen Klee。

Yes. On the video solution offerings, can you discuss a little, how the business breaks out between product sales and recurring and how we could think about the potential growth in recurring revenues?

是的。關於視頻解決方案產品，您能否討論一下業務如何在產品銷售和經常性收入之間進行突破，以及我們如何考慮經常性收入的潛在增長？

Yes. So as far as the products go, so most of our sales are now -- look for over the past 2 years, I think, at this point, maybe even 2.5 to 3. The -- most of our products are now sold on a subscription of 5 years. So there'll be -- that will include your hardware and your software. So the contract is for both. As far as collections go, usually, we'll front load it to get our hardware cost back in at the point of the initial sale. But on the revenue recognition side, that will be tapered off over the 5 years of the contract evenly, just due to rev rec guidelines with ASC 606.

是的。就產品而言，我們的大部分銷售額現在 - 尋找過去 2 年的時間，我認為，在這一點上，甚至可能是 2.5 到 3。 - 我們的大多數產品現在都在訂閱5年。所以，這將包括你的硬件和軟件。所以合同是雙方的。就收藏而言，通常我們會預先加載它，以便在首次銷售時收回硬件成本。但在收入確認方面，由於 ASC 606 的轉速記錄準則，收入將在合同的 5 年期間均勻減少。

So there's -- as far as, I guess, the cash influence a little front heavy, but not overly heavy. I mean but it's really software over the 5 years is really what breaks down, if that answers your question.

因此，我認為現金的影響有點重，但也不過分重。我的意思是，如果這能回答你的問題的話，那麼真正是軟件在五年內崩潰了。

Yes. Allen. This is Stan. I'll comment a little bit, too. One of the things the majority, I mean, I would say well over maybe even 95% of all the reoccurring revenue is on the law enforcement side. So the commercial side is just really starting to be able to get a split in the door and mainly with the new EVO system that we're going to start counting quite a bit.

是的。艾倫.這是斯坦。我也稍微評論一下。我想說的是，其中大多數經常性收入的 95% 以上都來自執法部門。因此，商業方面才真正開始能夠取得進展，主要是通過我們將開始大量計數的新 EVO 系統。

And with that, I don't know if you happen, Allen to be on the call for as the year-end. But we recently had some data that we received from one of our partners, which is a very large insurance company that is looking to assist us in the marketing of our products through all those that they insure. And they've seen a reduction in claims that almost paid for their whole -- all their devices in 1 year, and they still got 4 more years. I mean, I think, Brody, you know the exact numbers of that, what it came in at. But that's going to be very encouraging. And then that's something that we'll be looking at doing on reoccurring revenues with very solid creditworthy end users on the commercial side.

就這樣，我不知道艾倫是否會在年底應徵。但我們最近從我們的一個合作夥伴那裡收到了一些數據，該合作夥伴是一家非常大的保險公司，希望通過他們承保的所有產品來幫助我們營銷我們的產品。他們發現，幾乎在 1 年內支付全部設備費用的索賠減少了，而且他們還有 4 年的時間。我的意思是，我想，布羅迪，你知道確切的數字，知道它的價值。但這將非常令人鼓舞。然後，我們將考慮在商業方面為信譽良好的最終用戶帶來經常性收入。

That's great. And then one other question on revenue cycle management. If I could just understand a little as you integrate acquisitions. How do you think about the synergies of owning multiple of these companies and the end markets that they sell to and different type of software. Does that matter? Or do you try to make it one type or maybe just explain that a little?

那太棒了。然後是關於收入周期管理的另一個問題。如果我能在整合收購時理解一點就好了。您如何看待擁有多家這些公司及其銷售的終端市場和不同類型軟件的協同效應。這有關係嗎？或者你會嘗試將其變成一種類型，或者只是稍微解釋一下？

Yes. No, the one thing, Allen, we're pretty blessed. I mean we've got a very, very strong engineering team. And so when we do look at some of the areas that we can get involved in, especially when it comes to video solutions, we're very capable to adapt to the environment that meets their needs. I mean if you look at it, we're doing everything from law enforcement to stadiums like MetLife Stadium to Royal Caribbean Cruise lines. We're doing taxi cabs, ambulances, buses. We're doing over-the-road vehicles. So the videos -- it truly is a video solutions, the vision anymore to where it's not just so much of law enforcement or just even call it in-car video because there's so many other applications that we're getting involved in.

是的。不，有一件事，艾倫，我們非常幸運。我的意思是我們有一支非常非常強大的工程團隊。因此，當我們確實考慮我們可以涉足的一些領域時，尤其是在視頻解決方案方面，我們非常有能力適應滿足他們需求的環境。我的意思是，如果你看一下，我們正在做各種各樣的事情，從執法到大都會人壽體育場等體育場，再到皇家加勒比遊輪公司。我們正在做出租車、救護車、公共汽車。我們正在生產公路車輛。所以視頻——它確實是一個視頻解決方案，它的願景不再只是執法部門，甚至只是稱之為車內視頻，因為我們正在參與許多其他應用程序。

And then as far as the other avenues that we may look at as far as in acquisitions and companies that would want to partner up with. Some of them, we look for where they may have some uniqueness in some areas that we may not, and we know that may take us 1.5 years or 2 years to get to that area. While we may have uniqueness if they do not.

然後是我們可能會考慮的其他途徑，包括收購和想要合作的公司。其中一些，我們尋找它們在某些領域可能具有我們可能沒有的獨特性，並且我們知道可能需要我們 1.5 年或 2 年才能到達該領域。如果他們不這樣做，我們可能會有獨特性。

And therefore, as long as all parties are willing to work with each other, things can happen really quickly. And we've got a few of those that have came together that we're pretty excited about that we'll continue to enhance the revenue and bottom line for the video solutions side as well.

因此，只要各方願意共同努力，事情就能很快發生。我們已經收集了一些我們非常興奮的產品，我們將繼續提高視頻解決方案方面的收入和利潤。

On the ticketing and production side, we've got -- again, it's -- we're very, very blessed because on the ticketing side, we went from a ticketing platform that was pretty much secondary and still does a lot of secondary business, but we now have over 50 entities that were the primary, meaning it doesn't matter if it's soccer, baseball or a concert, all the ticket sales will be going through TicketSmarter, which makes it very nice. And because of that relationship that we have with over 200 universities, we also have unique opportunities on being able to put -- introduce the production company Kustom 440, much like we just did this weekend and put together events.

在票務和製作方面，我們再次非常幸運，因為在票務方面，我們從一個幾乎是次要的票務平台發展而來，但仍然做很多次要業務，但我們現在有超過 50 個實體作為主要實體，這意味著無論是足球、棒球還是音樂會，所有門票銷售都將通過 TicketSmarter 進行，這非常好。由於我們與 200 多所大學建立了這種關係，我們還有獨特的機會能夠介紹製作公司 Kustom 440，就像我們這個週末剛剛舉辦的活動一樣。

One of the things I might clarify on this event while our number was 7,500. That may not seem like a big number when you're talking -- people are used to hearing stuff like Arrowhead Stadium or T-Mobile Arena, stuff like that. That production that we did was in a minor league ballpark, a baseball field. It's actually inside of it. And so we're capable of going to a university, a city. We can do the whole build-out and everything. And because of the relationship that we've had and the credibility we have with our law enforcement background and security background, you have the city fathers and others that are willing to work with us and allow us to bring talent to their city, draw business to their cities. And so we believe that we'll be able to have numerous opportunities in regards to the Kustom 440 production side, which also enhances the ticketing side going forward. I hope that helped a little.

當我們的人數是 7,500 時，我可能會就這次活動澄清一件事。當你說話時，這個數字可能看起來並不大——人們習慣於聽到像箭頭體育場或 T-Mobile 體育場這樣的東西。我們所做的那個製作是在一個小聯盟的棒球場裡進行的。它實際上就在裡面。所以我們有能力去一所大學、一座城市。我們可以完成整個擴建和一切工作。由於我們之間的關係以及我們在執法背景和安全背景下所擁有的信譽，城市之父和其他人願意與我們合作，並允許我們為他們的城市帶來人才，吸引業務到他們的城市。因此，我們相信我們將能夠在 Kustom 440 生產方面擁有大量機會，這也將增強票務方面的發展。我希望這有一點幫助。

The next question comes from (inaudible) from (inaudible) .

下一個問題來自（聽不清）來自（聽不清）。

To start with, I hope I won't pick up from the call. I want to express my dissatisfaction regarding the law and weak performance of the company. As investors, we have put so much money to invest in Digital Ally. But apparently, that money is being used for something else and not for the real purpose of growing the company. Overnight, for example, we wake up and without any short notice, you perform a reverse split.

首先，我希望我不會接聽電話。我想表達對法律和公司業績不佳的不滿。作為投資者，我們投入了大量資金來投資 Digital Ally。但顯然，這筆錢被用於其他用途，而不是用於發展公司的真正目的。例如，一夜之間，我們醒來，在沒有任何通知的情況下，你就進行了反向拆分。

Secondly, what is our position as investors and victims of this reverse split when it comes to Kustom Entertainment and Ticketing. We still haven't received any news about that.

其次，當涉及 Kustom Entertainment 和 Ticketing 時，我們作為投資者和這種反向分裂的受害者的立場是什麼？我們還沒有收到任何有關此事的消息。

Thirdly, there is a poor communication between the company and investors. You never inform us of anything and you never sign contracts, you never grow business. I asked you this question last year and the year before, during the conference and you promised that the company will perform better. But here we are almost our fourth year as investors and only you do is spending money on buying a warehouse and not necessary things. We are not even convinced with what you have been saying right now. You are not selling while your competitors are growing their business. You are behind your debt, doing nothing but driving the company and the investors portfolio down. I'm so sorry, but this is so fishy.

三是公司與投資者溝通不暢。你從不告訴我們任何事情，你從不簽署合同，你從不發展業務。我在去年和前年的會議上問過你這個問題，你承諾公司會表現得更好。但現在我們已經是作為投資者的第四個年頭了，你所做的只是花錢買倉庫而不是買必需品。我們甚至不相信你現在所說的話。當你的競爭對手正在發展業務時，你並沒有進行銷售。你背負著債務，除了壓低公司和投資者的投資組合外什麼也沒做。我很抱歉，但這太可疑了。

Yes. We appreciate your comments, and we also recognize that maybe you're not picking up on all of the deals. We just had a call 45 days ago. Any time we have news that we do a press release. Anytime we have a filing that's needed, we've done our filings. And we continue to put together the package that we believe is going to be very successful for the shareholders. And while it's a tough market out there for a lot of companies, we feel like we're still doing the things that can build a successful company and we'll build a successful company with the different products that we're bringing out whereas video solutions and definitely the ability to enhance the Ticketing platform with the Kustom 440. So thank you for your comments.

是的。我們感謝您的評論，並且我們也認識到您可能沒有接受所有優惠。 45 天前我們剛剛接到一個電話。每當我們有消息時，我們都會發布新聞稿。每當我們需要備案時，我們都會完成備案。我們將繼續整合我們相信將為股東帶來非常成功的一攬子計劃。雖然對於很多公司來說這是一個艱難的市場，但我們覺得我們仍在做可以建立一家成功公司的事情，我們將利用我們推出的不同產品來建立一家成功的公司，而視頻解決方案，以及使用 Kustom 440 增強票務平台的能力。非常感謝您的評論。

Next question comes from [Mick Tranbarger] at Momentum Investment Research.

下一個問題來自動量投資研究公司的 [Mick Tranbarger]。

Stan, a 2-part question. First of all, is that we've almost eliminated the success that you had on the reverse stock split from a stock-price standpoint, and it continues to deteriorate on a regular basis. What's your next plan if the NASDAQ starts to consider delisting you at that point?

斯坦，一個由兩部分組成的問題。首先，從股價的角度來看，我們幾乎消除了反向股票分割所取得的成功，而且它的情況還在持續惡化。如果納斯達克屆時開始考慮將您退市，您的下一步計劃是什麼？

Second question is with the cash burn that we currently see on the balance sheet and with the deferred revenues that you've benefited from the operating standpoint, which will reverse itself in the future, basically, based on (inaudible) numbers will create a negative operating cash flow margin. What is the longevity of the company before you run completely out of cash?

第二個問題是我們目前在資產負債表上看到的現金消耗以及您從運營角度受益的遞延收入，這將在未來發生逆轉，基本上，基於（聽不清）數字將產生負數經營現金流量利潤率。在現金完全耗盡之前，公司的壽命有多長？

Addressing the NASDAQ. I mean we've gotten a clean bill of health there, and I agree that's something we always want to continue to have with NASDAQ, so we keep listed. And I think one of the things with the ability to sit there and give a little more clarity in regards to some of the assets and the valuations that are there will help enhance our stock price. And also the much -- like I mentioned on earlier the commercial product, I think, is going to enhance what we're going to see in regards to video solutions.

在納斯達克上市。我的意思是，我們在那裡得到了一份乾淨的健康證明，我同意這是我們一直希望在納斯達克繼續擁有的東西，所以我們繼續上市。我認為其中一件事是能夠坐在那裡，讓一些資產和估值更加清晰，這將有助於提高我們的股價。而且，就像我之前提到的那樣，我認為商業產品將增強我們將在視頻解決方案方面看到的內容。

I know that the stuff we're doing in regards to the Kustom 440 and the production side will enhance both the Ticketing and the top and bottom line in regards to Kustom Entertainment. So all those things that you've stated are things that we've been looking at, continue to address. We're getting medical billing to the point where they now are starting to -- we're starting to reach some of the benefits that we were anticipating and hoping from them.

我知道我們在 Kustom 440 和製作方面所做的工作將增強 Kustom Entertainment 的票務以及收入和利潤。因此，您所說的所有這些問題都是我們一直在關注並繼續解決的問題。我們的醫療賬單已經達到了他們現在開始的水平——我們開始實現我們所期待和希望從他們那裡得到的一些好處。

Brody can touch on that a little bit more than I could. But all those things that you're saying are very apparent to us, and we're doing our best to address them as quick as we can, but not being totally disruptive to where we're going to harm ourselves for the bigger picture. I think -- and I feel very confident when the evaluations of the -- mainly the 3 entities that are generating a tremendous amount of the revenue is recognized. And the entertainment company is a stand-alone entity. It will greatly enhance the visibility of both the video solutions and the things that they will be doing and have been doing to get back to profitability and eclipse that crossover that you're talking about as far as the deferred revenue.

布羅迪比我更能觸及這一點。但你所說的所有這些事情對我們來說都是非常明顯的，我們正在盡最大努力盡快解決這些問題，但不會完全破壞我們為了大局而傷害自己的地方。我認為，當對產生大量收入的 3 個實體的評估得到認可時，我感到非常有信心。娛樂公司是一個獨立的實體。它將極大地提高視頻解決方案以及他們為恢復盈利而將要做和一直在做的事情的可見性，並超越您所談論的遞延收入的交叉。

And then the Entertainment side, the ticketing platform has been very profitable in the past. While they did try some different, very expensive media approaches that didn't quite work out, whether or not we got sold a bag of goods or what happened there. We've been getting back to basics. And with that, I think we'll have good success once we've finally moved on from those moves that we made -- let's call it, 1.5 years ago. Those are behind us, and that will straighten up a lot of very expensive costs that did not repay any benefits.

然後在娛樂方面，票務平台過去利潤非常豐厚。雖然他們確實嘗試了一些不同的、非常昂貴的媒體方法，但並沒有完全奏效，無論我們是否出售了一袋商品或那裡發生了什麼。我們一直在回歸基礎。因此，我認為一旦我們最終擺脫了 1.5 年前所做的那些舉措，我們就會取得巨大的成功。這些都已經過去了，這將消除許多非常昂貴的成本，而這些成本並沒有帶來任何好處。

Your next question comes from Bryan Lubitz at Equitable.

您的下一個問題來自 Equitable 的 Bryan Lubitz。

All right. So the first question I have for you, and I think you had touched on it a little bit earlier in regards to getting your financials done for 2021 and obviously in this Q as well. Do we have any time line that we can point towards or that we're shooting for in terms of getting the actual split done with spinning off of TicketSmarter?

好的。所以我要問你的第一個問題，我認為你早些時候已經談到了關於完成 2021 年財務狀況的問題，顯然也在這個問題中。我們是否有任何可以指出的時間線，或者我們正在努力通過分拆 TicketSmarter 來完成實際的分割？

So Bryan, the timing of the actual split, let's call it, is going to be a little bit in the SEC's hands. We think that we're real close on getting the audits wrapped up. So let's say that maybe in just a couple of weeks, we have the remainder of 2021 for TicketSmarter completed. At that point in time, providing that we've got a real clear direction on the avenue that we want to go down with some of the options that have been presented to us. We will have all the information necessary that the SEC is going to require from us, and we can make that filing.

所以布萊恩，實際拆分的時間，我們可以這樣稱呼，將在一定程度上掌握在 SEC 的手中。我們認為我們已經非常接近完成審計了。因此，假設也許在短短幾週內，TicketSmarter 的 2021 年剩餘時間就完成了。到那時，只要我們在道路上有一個真正明確的方向，我們就可以採取一些已經向我們提出的選擇。我們將獲得美國證券交易委員會要求我們提供的所有必要信息，並且我們可以進行備案。

So we're hopeful that -- that's a pivotal point, obviously, to get that done. And then once we have that all inserted into the proper documents, we'll file that with the SEC. Obviously, they'll probably come back with comments now with us being publicly held, depending on the path that we go down, hopefully, is looked at one time, not 2 and 3, and we could go ahead and get this wrapped up fairly quickly. They are -- I think they technically have to respond within 30 days of a filing.

因此，我們希望——顯然，這是實現這一目標的關鍵點。然後，一旦我們將所有內容插入適當的文件中，我們就會向 SEC 提交文件。顯然，隨著我們公開舉行，他們可能會回來發表評論，這取決於我們走的路，希望是一次而不是兩次和三次，我們可以繼續並公平地解決這個問題迅速地。他們——我認為從技術上講他們必須在提交申請後 30 天內做出回應。

So provided that we take a look at it and everything looks in order, it could happen really quickly. But I would think that we're going to get at least 1 round of comments before they'll allow us to go ahead and exercise the transaction that we're eventually contemplating.

因此，如果我們看一下並且一切看起來都井然有序，那麼它可能會很快發生。但我認為，在他們允許我們繼續執行我們最終考慮的交易之前，我們將至少收到一輪評論。

Okay. And this one is for you, Brody. You mentioned earlier when you were going over the numbers that current stockholder equity in the company is roughly $30 million right now. Can you comment at all to the fact that you guys are sub-$10 million in market cap? You have over $30 million in stockholder equity.

好的。這是給你的，布羅迪。您之前在查看這些數字時提到，公司目前的股東權益目前約為 3000 萬美元。您能否對你們的市值低於 1000 萬美元這一事實發表評論？您擁有超過 3000 萬美元的股東權益。

Yes. I mean I'm just -- I was trying to think what to say there. Because there is kind of disappointing to us that our market cap is where it is, considering the value we think we have with really in our 3 core businesses, but the business as a whole. I mean, our current assets alone are 2x our market cap. So -- and our stockholders' equity like you just said is 3x our market cap. So obviously, it's not a favorable market and we need to show some results here soon that can help this -- our market cap increase as well. Yes, it's tough to see them in with our market cap where its relative to our assets and stockholder equity as well.

是的。我的意思是我只是——我試圖思考該說些什麼。因為考慮到我們認為我們在 3 個核心業務以及整個業務中真正擁有的價值，我們的市值目前的水平讓我們有點失望。我的意思是，僅我們的流動資產就是我們市值的兩倍。因此，正如您剛才所說，我們的股東權益是我們市值的 3 倍。顯然，這不是一個有利的市場，我們需要盡快在這裡展示一些可以幫助實現這一點的結果——我們的市值也隨之增加。是的，很難將它們視為我們的市值，因為它也與我們的資產和股東權益相關。

Bryan, that's one of the things that we're trying to do. As you know, we've attended a couple of conferences, we're going to be looking at additional conferences to try to get more exposure out there on the values that Brody and I, for sure, and others, obviously believe that we have because you read it right. There it is. Stockholders' equities is almost 3x what our market cap is right now.

布萊恩，這是我們正在努力做的事情之一。如您所知，我們已經參加了幾次會議，我們將參加更多會議，以嘗試更多地了解布羅迪和我以及其他人顯然相信我們擁有的價值觀因為你讀對了。就在那裡。股東權益幾乎是我們目前市值的三倍。

Yes. It's, as Brody said, a tough market, especially for small caps. I'm curious, and I know we've had conversations privately being that you guys are 1/3 of what your shareholder equity is, half of what your current assets are and you have a bunch of mailbox, money coming your way as you would love to term it, Stan. Have you guys ever considered some of the parts being so much greater than the whole doing a private takeover of the company or selling off parts of the company?

是的。正如布羅迪所說，這是一個艱難的市場，尤其是對於小盤股而言。我很好奇，我知道我們私下里談過，你們的股東權益是你們的 1/3，你們現有資產的一半，你們有一堆郵箱，錢隨著你們的到來而源源不斷地湧來。我很樂意稱之為，斯坦。你們是否曾經考慮過對公司進行私人收購或出售公司的部分內容，其中某些部分比整體要大得多？

Well, I think that's sort of -- the answer is yes. I mean we contemplated a lot of things along those lines. I think that's why we are doing all the things that we're doing right now as far as the audits and all those in place even going back the full 2 years on TicketSmarter because that opens up our opportunities. Whether or not it's strategic to go ahead and spin it out and let it stand on its own as a publicly-held company or if the right price came along, take advantage of that as well. And that actually would go with any of the entities that are there. Obviously, we needed to go ahead and we do have [audited] financials on the medical billing side of things, clearly, on the video solutions side. We now have the ticketing, entertainment side completed.

嗯，我認為答案是肯定的。我的意思是，我們沿著這些思路思考了很多事情。我認為這就是為什麼我們現在正在做的所有事情，包括審計和所有到位的事情，甚至可以追溯到 TicketSmarter 整整 2 年前，因為這為我們帶來了機會。無論繼續分拆它並讓它作為一家上市公司獨立存在是否具有戰略意義，或者是否有合適的價格出現，也可以利用這一點。這實際上會與那裡的任何實體相匹配。顯然，我們需要繼續前進，而且我們確實在醫療計費方面（顯然，在視頻解決方案方面）有[審計]財務數據。現在我們已經完成了票務、娛樂方面的工作。

So it does open up a lot more opportunities to explore not only what you've said, but again stay in the course on some of the other things that we've been in contact with and the Board has this looking at.

因此，它確實提供了更多的機會，不僅可以探索您所說的內容，還可以繼續關注我們一直在接觸的其他一些事情，董事會正在考慮這一點。

Your next question comes from Mike Albanese at EF Hutton.

您的下一個問題來自 EF Hutton 的 Mike Albanese。

Stan, Brody. I just wanted to talk about Kustom 440 quick, I guess. Congrats on getting your first event done and I think you alluded to this, but do you have any other planned for the back half of this year?

斯坦、布羅迪。我想我只是想快速談談 Kustom 440。恭喜你完成了第一次活動，我想你也提到了這一點，但是你今年下半年還有其他計劃嗎？

We do. So right now, we have obviously a lot of offers out there. And what I mean offers, not only you got to coordinate not only the facility and the availability of the facility but also the availability of the talent that you want to have come in. And so there's quite a few offers that are out there that we're trying to firm up and we'll get pretty aggressive here in the coming days in regards to going ahead and nail and some of them down.

我們的確是。所以現在，我們顯然有很多優惠。我的意思是提供，您不僅需要協調設施和設施的可用性，還需要協調您想要加入的人才的可用性。因此，我們提供了相當多的報價我們正在努力堅定立場，在接下來的幾天裡，我們將非常積極地繼續前進，並確定其中一些目標。

I mean that the things that you do have, Mike, is that if for some reason, a particular artist passes because just there's a conflict or whatever the reasoning may be, we are very, very well connected and positioned to go ask someone else to step in of the same caliber. If you want an A lister right off the bat, you go get them. I mean having Chris Young and Trace Adkins and Gabby Barrett and Jo Dee Masina. We had even some of the history in Lonestar and Clay Walker there. I mean we have a great lineup out there and everyone just had an amazing time.

我的意思是，邁克，你確實擁有的東西是，如果由於某種原因，某個特定的藝術家因為存在衝突或任何原因而通過，我們之間的聯繫非常非常好，並且有能力去要求其他人同口徑的介入。如果你立刻想要一個一流的演員，你就去找他們。我的意思是克里斯·楊、特雷斯·阿德金斯、加比·巴雷特和喬·迪·馬西納。我們甚至還了解了 Lonestar 和 Clay Walker 的一些歷史。我的意思是我們有一個很棒的陣容，每個人都度過了一段美好的時光。

So what you do is, we really truly are looking for not just a concert to where you've got a headliner in one opening that. This is -- typically, these are gates open at 1:00, and the headliner may not go on until 9 or 10 later that day. So you've got like 6 different acts that will be performing maybe more. So you just got to fill them in, but we have a tremendous amount of offers out there. We have the venues identified and are working with us. So I think the back side, you'll see a lot of activity on the Kustom 440 side, for sure.

所以你所做的是，我們真正想要的不僅僅是一場音樂會，讓你在一場開場就能成為頭條新聞。一般來說，這些大門在 1:00 開放，而頭條新聞可能要到當天晚些時候 9 點或 10 點才會上演。所以你有 6 個不同的表演，可能還會表演更多。所以你只需填寫它們，但我們有大量的優惠。我們已確定場地並正在與我們合作。所以我認為在背面，您肯定會在 Kustom 440 一側看到很多活動。

Got it. And were you able to leverage your shield line at all? I know there's the potential to be able to use that at these venues.

知道了。你能充分利用你的護盾線嗎？我知道在這些場所有可能使用它。

Yes. I mean so the intention is to not only use the shield line at these events, but also to do the best that we can to be utilizing the video solutions side as well as far as our body cameras and even if you have a petrol car driving around a little bit, make sure that those security people that we hire, will be utilizing our products as well and also giving us the exposure not only to the local departments that will be hired to come in and help monitor things. But definitely, our security team will be wearing body cameras and such out there as well.

是的。我的意思是，我們的目的不僅是在這些活動中使用屏蔽線，而且還要盡最大努力利用視頻解決方案以及我們的隨身攝像頭，即使您駕駛的是汽油車大約一點點，確保我們僱用的那些安全人員也將使用我們的產品，並讓我們不僅接觸到將被雇用來幫助監控事物的當地部門。但可以肯定的是，我們的安全團隊也會佩戴隨身攝像頭等。

Was that the case for this first festival?

第一個節日也是如此嗎？

We had this first festival, they had a situation where that particular company was not allowed to -- they didn't have the proper insurance to go that far. And so while this was our first one out of the box, we've got a little more clarity on what to make sure the checklist or before we go ahead and sign a contract with them.

我們舉辦了第一個音樂節，他們遇到了不允許特定公司參加的情況——他們沒有適當的保險來走那麼遠。因此，雖然這是我們的第一個開箱即用的產品，但在我們繼續與他們簽訂合同之前，我們對檢查清單上的內容有了更清晰的了解。

Got it. Okay. And then in terms of, I guess, revenue or just breakout in general between -- with Kustom 440, between the Ticketing segment and then kind of all other revenue? I mean, do you plan on breaking that out? I mean the crux to what I'm getting to is, I think the expectation, right, you alluded to this earlier, TicketSmarter was profitable. There's obviously been some headwinds from revenue and kind of cost standpoint, negative gross margins in that business. But back to basics, you can ramp up volume kind of that coincides with the entertainment segment.

知道了。好的。然後，我想，就收入而言，或者只是在 Kustom 440、票務部門和所有其他收入之間的總體突破？我的意思是，你打算打破這個局面嗎？我的意思是，我要說的關鍵是，我認為期望，對，你之前提到過，TicketSmarter 是有利可圖的。從收入和成本角度來看，該業務顯然存在一些阻力，毛利率為負。但回到基礎，你可以增加與娛樂部分一致的音量。

I mean -- do you plan on kind of breaking it out so that we can get a look at what the underlying profitability is of the Ticket segment versus all else? And then I guess if you could provide any insight or color on top of that as to (inaudible) for profitability there.

我的意思是 - 您是否計劃將其進行突破，以便我們可以了解票務部門與其他部門相比的基本盈利能力？然後我想您是否可以在此基礎上提供有關（聽不清）盈利能力的任何見解或色彩。

Sure. Mike, I think what you're asking is, we're definitely going to sit there and identify what Kustom Entertainment will look like. And I think what you're asking is, can we go a little further than that and break it out to give us an idea of what Kustom 440 versus TicketSmarter, that platform looks like as well. And if that's the case, I don't know why -- I mean we operate them essentially separately. So I don't know why we couldn't. I'm not on the accounting side of things, so I'll let Brody deal with that.

當然。邁克，我想你想問的是，我們肯定會坐在那裡確定 Kustom Entertainment 的樣子。我認為您要問的是，我們能否更進一步，將其分解，讓我們了解 Kustom 440 與 TicketSmarter 以及該平台的情況。如果是這樣的話，我不知道為什麼——我的意思是我們基本上是分開運營它們的。所以我不知道為什麼我們不能。我不負責會計方面的工作，所以我會讓布羅迪來處理這個問題。

Yes, I think especially once the separation occurs, I think once Kustom Entertainment has their own filings in Q's and K's, they'll have it broken out absolutely between the TicketSmarter segment and the Kustom 440 segment. As we currently do it on a consolidated level, it would probably fall under the entertainment segment. But I think once the separation is done, you'll really see the difference between Kustom 440 and TicketSmarter within their filings.

是的，我認為特別是一旦分離發生，我認為一旦 Kustom Entertainment 在 Q 和 K 中擁有自己的文件，他們將在 TicketSmarter 細分市場和 Kustom 440 細分市場之間絕對進行劃分。由於我們目前是在綜合層面上進行的，因此它可能屬於娛樂領域。但我認為一旦分離完成，您就會在 Kustom 440 和 TicketSmarter 的文件中真正看到它們之間的區別。

Yes. Mike, I think we [really want] to do that because we actually have been asked by other parties, let's leave it at that, to step in and put together a -- whether it be a concert or an event or something along those lines, that may be just a corporate event, that doesn't have any ticket sales at all. So it definitely will need to have them separated for sure when we get to that point.

是的。邁克，我認為我們[真的很想]這樣做，因為實際上其他各方都要求我們這樣做，讓我們介入並組織一個——無論是音樂會、活動還是類似的活動，這可能只是一個公司活動，根本沒有任何門票銷售。因此，當我們達到這一點時，肯定需要將它們分開。

Yes. Okay. Great. Yes, that's helpful. I just -- I think the theory in a sense of the investment thesis for that strictly that segment, right, is that as you build out Kustom 440 in the Entertainment segment, that will help drive scale and volume for TicketSmarter, which in theory should improve its profitability, right? And then you kind of get the exponential growth of the operating leverage there. And I guess I'm just -- I'm hoping that, that becomes apparent as opposed to a situation where TicketSmarter maybe doesn't get those benefits and tailwinds, but it's kind of masked by Kustom 440 as a whole. So I think if you could kind of break that out in your filings and so accretive to that theory, so to speak, that would be beneficial work both the analysts and obviously investors as well.

是的。好的。偉大的。是的，這很有幫助。我只是 - 我認為嚴格意義上該細分市場的投資理論的理論是，當您在娛樂細分市場中構建 Kustom 440 時，這將有助於推動 TicketSmarter 的規模和數量，理論上應該如此提高盈利能力，對嗎？然後你的運營槓桿就會呈指數增長。我想我只是 - 我希望這一點變得明顯，而不是 TicketSmarter 可能無法獲得這些好處和順風的情況，但它有點被 Kustom 440 整體掩蓋了。所以我認為，如果你能在你的文件中打破這一點，並如此豐富這一理論，可以這麼說，這對分析師和投資者來說都是有益的工作。

No problem. We'll take that and definitely would like to do that. If not, we'll try to -- if it's an accounting issue, we'll try to footnote it to help you out. How about that?

沒問題。我們會接受並且絕對願意這樣做。如果沒有，我們會嘗試 - 如果這是一個會計問題，我們會嘗試添加腳註來幫助您解決問題。那個怎麼樣？

Yes, that makes sense. That works. Okay. That's really it for me.

是的，這是有道理的。這樣可行。好的。對我來說真的就是這樣。

The next question is the follow-up from Allen Klee at Maxim Group.

下一個問題是 Maxim Group 的 Allen Klee 的後續問題。

Your joint venture for medical billing. This business, it seems like it's mostly -- it gets paid by doctor visits. So it's kind of reoccurring and it seems to have attractive margins. Can you talk about your strategy of as you're acquiring new companies, what you're looking for and have the synergies you can get from combining them, the type of customers they have? And is there any issues that there's different software being used from the various companies that get acquired?

您的醫療賬單合資企業。這項業務似乎主要是通過看醫生來支付費用。所以這種情況會反復出現，而且利潤似乎很有吸引力。您能否談談您收購新公司時的策略、您正在尋找什麼以及通過合併它們可以獲得的協同效應以及它們擁有的客戶類型？被收購的不同公司使用不同的軟件是否存在任何問題？

Yes. Thank you, Allen. So when we look at these acquisitions, it's really, we're looking at ones that have growth potential but also have positive earnings as they stand now and margins that can be improved as well. So you've mentioned software. Once we do all these acquisitions, we turn them in, they all move into our software side, and we have our back office, which is really where we can lessen the costs and improve margins as fast as possible by bringing them into our back office solutions and whatnot. So we do integrate them all into our systems and our processes, which is really the strategy we wanted to have anyway because that's the way we can grow the profitability of each one of those acquisitions.

是的。謝謝你，艾倫。因此，當我們審視這些收購時，我們實際上正在尋找那些具有增長潛力，但目前也具有正收益且利潤率也可以提高的收購。所以你提到了軟件。一旦我們完成了所有這些收購，我們就把它們上交，它們都轉移到我們的軟件方面，我們就有了我們的後台，這實際上是我們可以通過將它們引入我們的後台來盡快降低成本和提高利潤的地方解決方案等等。因此，我們確實將它們全部集成到我們的系統和流程中，這確實是我們想要的策略，因為這是我們提高每一項收購的盈利能力的方式。

So if that answers your question, if you wanted -- I mean the customer is everything, obviously, we're -- they kind of mold together anyway. So I don't as far as the medical billing side themselves. So a lot of them -- I think, one, they've kind of been all over the United States. So I think a couple have been in the same regions, but others have been branched down in the Midwest and the Northeast or Northwest and the Southwest.

因此，如果這回答了你的問題，如果你想要——我的意思是客戶就是一切，顯然，我們是——無論如何，他們都會融合在一起。所以我不知道醫療賬單方面本身。他們中的很多人——我想，其中之一，他們已經遍布美國各地。所以我認為有一些人在同一地區，但其他人則在中西部和東北部或西北和西南地區分支。

And Allen, again, I think the strategy -- the long-term strategy is to continue the roll ups because it's very fragmented, very fragmented market. And so as we go out there and continue to find the, call it, the mom-and-pops or the smaller entities, and we can roll them up and then implement our software and efficiencies that will just continue to help it grow. And right now, I think we're at a run rate somewhere around $8 million a year. Obviously, we'd like to get it, built up into the masses to where it's a very attractive candidate for a possible purchase or maybe possible stand-alone. So that's sort of the strategy that we've taken. But we're not trying to catch any falling knives out there by no means. There's plenty of them out there.

艾倫，我再次認為，長期戰略是繼續擴大規模，因為這是一個非常分散的市場。因此，當我們繼續尋找夫妻店或小型實體時，我們可以將它們匯總起來，然後實施我們的軟件和效率，這將繼續幫助其發展。現在，我認為我們的運行費用約為每年 800 萬美元。顯然，我們希望將它推廣到大眾中，使其成為可能購買或可能獨立的非常有吸引力的候選者。這就是我們採取的策略。但我們絕不是想接住掉落的刀子。那裡有很多這樣的東西。

And we don't also -- one last thing, and we'll wrap this up. But we also don't have to be just truly what's called medical. We also could do dental and some -- and other areas that we're capable of doing. So it's not just the MinuteClinic. It's also the dentist offices and stuff like that as well that we're capable of doing.

我們也不——最後一件事，我們將結束它。但我們也不必只是真正所謂的醫學。我們還可以做牙科和一些我們有能力做的其他領域。所以這不僅僅是 MinuteClinic。我們也有能力做牙醫診所之類的事情。

Thank you. And thank you, everybody, for joining us today. We really appreciate it. I know we've got a lot of work ahead of us, and we'll continue to keep our head down and do what we can to not only continue to execute on the plan and the strategy that has been announced in regards to the separation of the Entertainment and the Video Solutions division or the legacy Digital Ally. We'll continue to move forward on that and we do believe that will sit there and help bring a lot more clarity, as we mentioned, we have a stockholder equity of $30 million and a market cap of $10 million is just somewhat unacceptable, and we've got to get that fixed for our shareholders, and we'll work hard on doing that.

謝謝。感謝大家今天加入我們。我們真的很感激。我知道我們還有很多工作要做，我們將繼續保持低調，盡我們所能，不僅繼續執行已宣布的有關分拆的計劃和戰略娛樂和視頻解決方案部門或傳統的數字盟友。我們將繼續在這方面取得進展，我們確實相信這將有助於帶來更多的清晰度，正如我們提到的，我們擁有 3000 萬美元的股東權益，而 1000 萬美元的市值有點不可接受，並且我們必須為我們的股東解決這個問題，我們將努力做到這一點。

So thanks, everybody, for joining us. We appreciate it.

謝謝大家加入我們。我們很感激。

Ladies and gentlemen, this concludes the conference call for today. We thank you for participating, and we ask that you please disconnect your lines.

女士們、先生們，今天的電話會議到此結束。我們感謝您的參與，並請您斷開線路。