Phunware Inc (PHUN) 2023 Q3 法說會逐字稿

Good afternoon, ladies and gentlemen. Welcome to Phunware's third-quarter 2023 investor conference call. Currently, all parties are in a listen-only mode. Joining me today are Mike Snavely, Chief Executive Officer; and Troy Reisner, Chief Financial Officer. The format today will include prepared remarks by Mike and Troy, followed by a question-and-answer session.

女士們、先生們，午安。歡迎參加 Phunware 2023 年第三季投資者電話會議。目前，各方均處於只聽模式。今天加入我的是執行長 Mike Snavely；和財務長 Troy Reisner。今天的形式將包括麥克和特洛伊準備好的發言，然後是問答環節。

As a reminder, today's discussion will include forward-looking statements. These forward-looking statements reflect current views as of today, and they're based on various assumptions that are subject to risks and uncertainties, disclosed in the risk factors section of our SEC filings. Actual results may differ materially and undue reliance should not be placed upon them. Additionally, the matters being discussed today may include non-GAAP financial measurements.

提醒一下，今天的討論將包括前瞻性陳述。這些前瞻性陳述反映了截至目前為止的當前觀點，它們基於各種假設，這些假設受到風險和不確定性的影響，這些風險和不確定性已在我們向美國證券交易委員會提交的文件的風險因素部分中披露。實際結果可能存在重大差異，不應過度依賴它們。此外，今天討論的事項可能包括非公認會計準則財務衡量標準。

Reconciliation of GAAP to non-GAAP financial information is set forth in the earnings press release, which is available on the investor relations section of Phunware (technical difficulty) at investors.phunware.com. I further encourage you to visit investors.phunware.com to access not only the earnings press release, but also the current investor presentation, SEC filings, and additional collateral on Phunware. At this time, I would like to turn things over to Phunware CEO, Mike Snavely. Please proceed.

收益新聞稿中闡述了 GAAP 與非 GAAP 財務資訊的調節，該新聞​​稿可在 Investors.phunware.com 的 Phunware 投資者關係部分（技術難度）上取得。我進一步鼓勵您造訪 Investors.phunware.com，不僅可以存取收益新聞稿，還可以存取當前的投資者介紹、SEC 文件以及 Phunware 的其他抵押品。這次，我想把事情交給 Phunware 執行長 Mike Snavely。請繼續。

Thank you very much and welcome to our third-quarter 2023 investor conference call. In my short time back in Phunware, I've learned a lot and I'll highlight a few accomplishments of the past quarter to illustrate where we are. I'll talk about our immediate term plans to continue to create a healthier, more sustainable business, and I'll shed some light on the company's strategy moving ahead.

非常感謝並歡迎參加我們的 2023 年第三季投資者電話會議。在我回到 Phunware 的短暫時間裡，我學到了很多東西，我將重點放在上個季度的一些成就，以說明我們的進展。我將談論我們繼續創建更健康、更永續的業務的近期計劃，並且我將闡明公司前進的策略。

Some of you may know that I served as EVP of software for Phunware in the 2015-'16 timeframe. We built that business to about $25 million in annual sales, most of which were recurring. So when I was approached to return as the company's CRO, I embraced this opportunity to get the company back on track and to finish the mission. Upon my return, I found that the technology was sound as ever, the customers we had were happy renewing and buying more, and that the basic issue was a failure of sales execution and I need to think more deeply about how we can monetize our technology advantage.

你們有些人可能知道我在 2015 年至 16 年期間擔任 Phunware 軟體執行副總裁。我們將該業務的年銷售額提高到了約 2,500 萬美元，其中大部分是經常性銷售額。因此，當我被邀請重新擔任公司的 CRO 時，我抓住了這個機會，讓公司重回正軌並完成使命。回來後，我發現技術一如既往地健全，我們的客戶很高興續訂併購買更多產品，而基本問題是銷售執行失敗，我需要更深入地思考如何將我們的技術貨幣化優勢。

The Board concluded that what the company needs now is sales oriented D&A and CEO. And accordingly, they asked me to take on that role. So I've had the opportunity to say no twice to Phunware, and here I am because I believe our best days are ahead of us. Why do I believe that? First, the product is strong.

董事會的結論是，公司現在需要的是以銷售為導向的D&A和CEO。因此，他們要求我擔任這個角色。所以我有機會兩次對 Phunware 說“不”，而我來到這裡是因為我相信我們最好的日子就在前方。我為什麼相信這一點？一是產品過硬。

Our technology in the area of indoor wayfinding is demonstrably superior to that of major competitors like Aruba Meridian and more, according to customers and prospects who have evaluated them head-to-head. Further, the companion product, location, marketing, think offers triggered by a combination of who you are and where you are, is delivering value to customers today with increasing adoption. Second, our solution is sticky, as customers have historically renewed and bought more. This past quarter, we renewed the $2 billion Virginia Hospital Center, a member of the Mayo Clinic Care Network, for a five-year term.

根據對我們進行正面評估的客戶和潛在客戶的說法，我們在室內尋路領域的技術明顯優於 Aruba Meridian 等主要競爭對手。此外，伴隨產品、位置、行銷、思考由您是誰和您所在位置的組合觸發的優惠，正在為當今的客戶提供價值，並且採用率不斷提高。其次，我們的解決方案具有黏性，因為客戶歷史上會續訂並購買更多產品。上個季度，我們為梅奧診所護理網絡成員價值 20 億美元的維吉尼亞醫院中心續簽了五年期。

We also saw renewal at Mayo Clinic in Rochester through our partner HID. Prospectively, our account health indicators are strong, with substantial upsells in the pipeline. Further, we regularly see customers ask us to deploy our solution into new buildings or wings and to create new integrations into other software they use to operate their business. Finally, we are seeing the beginnings of a turnaround in our new logo acquisition, as our account-based marketing approach takes hold.

我們也透過我們的合作夥伴 HID 見證了位於羅徹斯特的 Mayo Clinic 的更新。展望未來，我們的帳戶健康指標強勁，並且正在醞釀大量追加銷售。此外，我們經常看到客戶要求我們將我們的解決方案部署到新建築或翼樓中，並創建與他們用於運營業務的其他軟體的新整合。最後，隨著我們基於帳戶的行銷方法的確立，我們的新商標收購開始出現轉變。

As of today, we have about $8 million in total contract value in the pipeline. Notably, about a third of those are from channel partners like Cox Business, Siemens Connect, and others. These partners and others see what we see: a synergy between their hardware and systems integration work and our consumer-facing mobile applications. We believe our pipeline and partner strength are good indicators of future bookings performance, as we continue to drive discipline into the sales process.

截至今天，我們正在醞釀的合約總價值約為 800 萬美元。值得注意的是，其中約三分之一來自 Cox Business、Siemens Connect 等通路合作夥伴。這些合作夥伴和其他合作夥伴看到了我們所看到的：他們的硬體和系統整合工作與我們面向消費者的行動應用程式之間的協同作用。我們相信，隨著我們繼續在銷售流程中推行紀律，我們的管道和合作夥伴實力是未來預訂績效的良好指標。

In our hospitality segment, we negotiated an outcome with Marriott corporates about the branding of the Wailea Beach Resort on Maui after some time in development. We believe this opens the door to additional business at Marriott-branded properties along the lines of our relationship with Gaylord Hotels, which should result in more logos coming from this, the largest hotel chain in the world. We are in pilot with a couple of large resorts and expect those deals to consummate in the first quarter. We are also in the final stages of negotiations with certain large resort properties under major hospitality brands and smaller regionally managed properties.

在我們的酒店業務領域，經過一段時間的開發後，我們與萬豪公司就毛伊島威雷亞海灘度假村的品牌問題進行了談判。我們相信，這將為萬豪品牌酒店的更多業務打開大門，就像我們與蓋洛德酒店的關係一樣，這應該會導致更多的徽標來自這家全球最大的連鎖酒店。我們正在與幾個大型度假村進行試點，預計這些交易將在第一季完成。我們也與主要飯店品牌旗下的某些大型度假村飯店和小型區域管理飯店進行了最後的談判。

In healthcare, we expect to have new logo announcements in the first quarter, based on sales cycles that are advancing now. Additionally, as it pertains to cost containment, as previously announced, we are winding down our Lyte business, which was non-core and consuming cash. We've also reduced staff headcount overall and Troy will talk more in detail about those numbers. But, we've preserved many of the key people who form the brain trust of Phunware technology.

在醫療保健領域，我們預計將根據目前正在推進的銷售週期在第一季發布新商標。此外，正如先前宣布的那樣，由於涉及成本控制，我們正在逐步削減非核心且消耗現金的 Lyte 業務。我們還減少了員工總數，特洛伊將更詳細地討論這些數字。但是，我們保留了許多構成 Phunware 技術智庫的關鍵人物。

Our strategy will be to build teams back carefully under the leadership of those long tenured staff members, in alignment with the revenue under management. And with that, I will turn it over to Troy to talk about our financial performance. After his remarks, please stay tuned. I'll return to talk about our vision for the future of Phunware, including some exciting announcements on how we'll be linking our software business with the relaunch of our digital asset strategy.

我們的策略是在那些長期任職的員工的領導下仔細重建團隊，並與管理的收入保持一致。接下來，我將把它交給特洛伊來談談我們的財務表現。聽完他的講話，請大家繼續關注。我將返​​回談論我們對 Phunware 未來的願景，包括一些關於我們將如何將我們的軟體業務與重新啟動的數位資產策略聯繫起來的令人興奮的公告。

Thanks, Mike, and good afternoon, everyone. I'd like to thank you all for joining us today for a review of our third-quarter 2023 financial performance and progress reshaping our cost structure, while we're discussing GAAP financial measures, unless otherwise specifically noted. Our press release, 8-K, and website will provide a reconciliation of all GAAP to non-GAAP financial results. So with that said, let's take a look at the numbers.

謝謝麥克，大家下午好。我要感謝大家今天加入我們，回顧我們 2023 年第三季的財務表現和重塑成本結構的進展，同時我們正在討論 GAAP 財務指標，除非另有特別說明。我們的新聞稿、8-K 和網站將提供所有 GAAP 與非 GAAP 財務業績的調整表。話雖如此，讓我們來看看數字。

Net revenues for the third quarter of 2023 totaled approximately $2.8 million, of which our platform revenue represented 45% or $1.3 million; and our hardware revenue represented 55% or $1.5 million. Gross margin was 7% compared to 16.7% last year. On a non-GAAP adjusted basis, gross margin was 9.8% compared to 17.9% last year. A significant impact to Q3's gross margin was a non-cash write-down of Lyte's inventory of approximately $500,000.

2023 年第三季的淨收入總計約為 280 萬美元，其中我們的平台收入佔 45%，即 130 萬美元；我們的硬體收入佔 55%，即 150 萬美元。毛利率為 7%，去年為 16.7%。以非公認會計原則調整後的毛利率為 9.8%，去年為 17.9%。對第三季毛利率的重大影響是 Lyte 庫存約 50 萬美元的非現金減記。

Absent this charge, our gross margin would have been 24.9% and non-GAAP gross margin would have been 27.8%. Our platform gross margin was 50.4% compared to 46.5% last year. And hardware gross margin was negative 28.3% compared to 6% last year, which is reflective of the inventory write-down at light. Total operating expense was approximately $18.7 million, inclusive of a $13.2 million goodwill impairment during the quarter.

如果沒有這筆費用，我們的毛利率將為 24.9%，非 GAAP 毛利率將為 27.8%。我們的平台毛利率為 50.4%，而去年為 46.5%。硬體毛利率為負 28.3%，而去年為 6%，反映了庫存減記。總營運費用約為 1,870 萬美元，包括本季 1,320 萬美元的商譽減損。

Other non-cash operating expense items for the quarter were stock-based compensation and amortization of intangibles, making up a combined $925,000 this year compared to $1 million in the prior year. By excluding these non-cash charges and goodwill impairment, adjusted operating expense was approximately $4.6 million compared to approximately $7.7 million last year. Non-GAAP adjusted EBITDA loss was $4.3 million compared to a loss of $6.7 million last year. Adjusted EBITDA loss was narrowed for the fourth consecutive quarter, as we continue executing against our plan to rightsize our cost structure.

本季的其他非現金營運費用項目包括以股票為基礎的薪酬和無形資產攤銷，今年總計為 925,000 美元，而上一年為 100 萬美元。排除這些非現金費用和商譽減值，調整後的營運費用約為 460 萬美元，而去年約為 770 萬美元。非 GAAP 調整後 EBITDA 虧損為 430 萬美元，而去年虧損 670 萬美元。隨著我們繼續執行調整成本結構的計劃，調整後的 EBITDA 虧損連續第四個季度收窄。

Net loss was approximately $19 million or $0.16 per share, compared to a net loss of approximately $8 million or $0.08 per share last year. The weighted average shares used to calculate earnings per share was approximately $120 million versus $98.8 million last year. Backlog and deferred revenue at the end of the quarter totaled approximately $4.8 million, slightly down quarter-over-quarter from $5.2 million. And moving to the balance sheet, we closed the quarter with cash of approximately $2.9 million.

淨虧損約為 1,900 萬美元，即每股 0.16 美元，而去年的淨虧損約為 800 萬美元，即每股 0.08 美元。用於計算每股收益的加權平均股票約為 1.2 億美元，而去年為 9,880 萬美元。本季末的積壓和遞延收入總計約為 480 萬美元，較上一季的 520 萬美元略有下降。從資產負債表來看，本季末我們的現金約為 290 萬美元。

During last quarter's earnings call, we were in the final stages of amending our existing promissory note with Streeterville Capital. Shortly thereafter, we executed an amendment that keep August 1, which was filed as an exhibit to our second quarter interview. As a reminder, as of August 1, our note payable to Streeterville Capital was approximately $7.2 million, which is payable in approximately nine-monthly installments of $800,000. In addition, Streeterville Capital has the option, at its election, to convert the outstanding balance, the equity. Unit conversion would directly offset the cash portion of the monthly amortization.

在上個季度的財報電話會議上，我們正​​處於與 Streeterville Capital 修改現有期票的最後階段。此後不久，我們執行了一項保留 8 月 1 日的修正案，該修正案已作為我們第二季度採訪的證據提交。提醒一下，截至 8 月 1 日，我們應付給 Streeterville Capital 的票據約為 720 萬美元，大約每九個月分期付款 80 萬美元。此外，Streeterville Capital 有權在選舉時選擇轉換未償餘額，即股權。單位轉換將直接抵銷每月攤提的現金部分。

During the third quarter, the note was reduced by $1.6 million through the payment of cash of $800,000 and the conversion of $800,000 note for approximately $3.4 million common shares. Also in October, Streeterville Capital converted $600,000 of the remaining notes for approximately $3.7 million shares. Phunware and Streeterville Capital agreed to forbear the remaining October cash payment of $200,000. As of November 1, our outstanding balance is approximately $4.96 million.

第三季度，透過支付 80 萬美元現金以及將 80 萬美元票據轉換為約 340 萬美元普通股，票據減少了 160 萬美元。同樣在 10 月，Streeterville Capital 將剩餘票據中的 60 萬美元轉換為約 370 萬美元的股票。 Phunware 和 Streeterville Capital 同意不支付 10 月剩餘的 20 萬美元現金。截至 11 月 1 日，我們的未償餘額約為 496 萬美元。

Now we've gone through the historical financials, and before I hand the mic back to Mike, I wanted to provide some further insight regarding progress towards rightsizing operations. The initial cost reduction steps we took during Q3 decreased our average monthly operating expense to about $1.5 million, which for the quarter, was a cash savings of approximately $1.5 million or 25%. While the savings from these steps were not fully realized during the quarter, we estimate the annualized savings to approximately $6.0 million. Further, progress continued subsequent to Q3.

現在我們已經了解了歷史財務數據，在我將麥克風交還給麥克之前，我想提供一些有關調整業務規模的進展的進一步見解。我們在第三季採取的初步成本削減措施將我們的平均每月營運費用減少至約 150 萬美元，本季節省了約 150 萬美元或 25% 的現金。雖然這些步驟帶來的節省在本季並未完全實現，但我們估計年化節省金額約為 600 萬美元。此外，第三季之後，進展仍在繼續。

Examples include restructuring our SaaS product, sales, delivery, and service model. As Mike mentioned, we have kept our people with the ability to scale other resources as needed. We have substantially aligned our headcount to support this new delivery model, which allows us to operate with 28 people today instead of 81. As a result of our streamlined operations and the team's ability to successfully work remotely.

例如，重組我們的 SaaS 產品、銷售、交付和服務模式。正如麥克所提到的，我們讓我們的員工能夠根據需要擴展其他資源。我們已經大幅調整了員工人數，以支援這種新的交付模式，這使我們現在的營運人員數量從 81 人增加到 28 人。得益於我們簡化的營運以及團隊成功遠距工作的能力。

We have also negotiated an early lease termination of our San Diego office space, effective October 31. We paid an early termination fee of approximately $67,000 and eliminated our future lease obligation of approximately $300,000. Additionally, we have reached an agreement in principle with the lessor of the light warehouse, to early terminate our lease effective November 30. We expect to pay an early termination fee of approximately $197,000, which will consist of releasing our security positive $77,000 and cash of about $120,000, which we believe will come from proceeds related to selling Lyte inventory and other assets.

我們還協商了提前終止聖地牙哥辦公空間的租約，自 10 月 31 日起生效。我們支付了約 67,000 美元的提前終止費，並免除了約 30 萬美元的未來租賃義務。此外，我們已與輕型倉庫的出租人達成原則協議，從 11 月 30 日起提前終止我們的租約。我們預計將支付約 197,000 美元的提前終止費，其中包括釋放我們的擔保正數 77,000 美元和現金約12 萬美元，我們認為這將來自與出售Lyte 庫存和其他資產相關的收益。

Such termination will eliminate our future lease obligation of approximately $1.7 million. We do expect to execute this agreement within the next week or so. Also, as previously announced, we have committed to exiting our PC systems integration business, Lyte technology, which we expect to complete before the end of 2023. However, we do expect a significant direct net cash burn related to Lyte to cease by the end of November.

此類終止將消除我們未來約 170 萬美元的租賃義務。我們確實希望在下週左右執行該協議。此外，正如先前宣布的那樣，我們已承諾退出我們的PC 系統整合業務Lyte 技術，我們預計該業務將在2023 年底前完成。不過，我們確實預計與Lyte 相關的大量直接淨現金消耗將在年底前停止十一月。

And lastly, we have engaged a real estate agent to market our remaining office space in Austin, while we seek to negotiate an early termination option. Of course, no assurance can be given that we will be successful in either path with respect to this Austin facility. And finally, a quick update regarding Phunware's ability to continue to navigate our current business environment. As we have previously discussed and disclosed, Phunware has several levers available to continue to fund its operations and growth, which include our cash on hand, which currently approximates $2.4 million; our at-the-market offering facility, which has more than $88 million currently available; and our facility with Lincoln Park, which currently has approximately $29.6 million available.

最後，我們聘請了一位房地產經紀人來推銷我們在奧斯汀的剩餘辦公空間，同時我們尋求協商提前終止選項。當然，不能保證我們在奧斯汀工廠的任何一條道路上都會取得成功。最後，快速更新一下 Phunware 繼續駕馭我們目前業務環境的能力。正如我們之前討論和披露的那樣，Phunware 有多種槓桿可以繼續為其營運和成長提供資金，其中包括我們手頭上的現金，目前約為 240 萬美元；我們的市場發行設施，目前可用金額超過 8,800 萬美元；以及我們在林肯公園的設施，目前可用資金約為 2,960 萬美元。

And then we can also pursue additional capital raises as necessary. We will remain active with both financial conferences and investor meetings, in our efforts to tell our story and further strengthen our corporate profile in the capital markets. With that, I'd like to turn the call back over to Mike for closing remarks.

然後我們還可以根據需要尋求額外的融資。我們將繼續積極參與財務會議和投資者會議，努力講述我們的故事並進一步增強我們在資本市場的企業形象。至此，我想將電話轉回給麥克，讓他致結束語。

Thanks, Troy. Since we've just covered recent developments in our sales and finance, we'll now turn our attention to our vision for the future of Phunware, which we're calling Phunware 3. Our vision is to drive ubiquitous adoption of Phunware technologies to connect brands, audiences, and soon, our digital asset holders. This triangle of value serves as the foundation of our unique proposition that monetizes anyone, anywhere, while preserving the value of the consumer's data.

謝謝，特洛伊。由於我們剛剛介紹了銷售和財務方面的最新發展，現在我們將把注意力轉向對 Phunware 未來的願景，我們稱之為 Phunware 3。我們的願景是推動 Phunware 技術的普遍採用，以實現互聯互通品牌、受眾，以及我們的數位資產持有者。這個價值三角是我們獨特主張的基礎，該主張使任何人在任何地方都能貨幣化，同時保留消費者資料的價值。

We believe that our value is directly proportional to the aggregate size of the mobile audience using Phunware technologies and we will be employing strategies to drive that audience size as quickly as possible. There are three pillars to this vision: first, we will continue to sell our patent-protected location and wayfinding technologies, in combination with our location marketing offering. We will migrate over time towards selling these as software components delivered as SDKs into existing mobile applications with large existing audiences. Our traction with some of the largest brands in hospitality, combined with our existing integration with Epic, the number one EMR provider in the US, puts us in a great position to deepen those relationships with embedded software.

我們相信，我們的價值與使用 Phunware 技術的行動受眾的總規模成正比，我們將採用策略來盡快擴大受眾規模。這個願景有三個支柱：首先，我們將繼續銷售受專利保護的定位和尋路技術，並結合我們的定位行銷產品。隨著時間的推移，我們將轉向將這些軟體元件作為 SDK 交付到擁有大量現有受眾的現有行動應用程式中進行銷售。我們與一些最大的酒店品牌的合作，再加上我們與美國第一大 EMR 提供商 Epic 的現有整合，使我們處於加深與嵌入式軟體的關係的有利位置。

Second, we will continue to explore new and additional ways to monetize our patents and other intellectual property. We believe we need to do a better job of exposing the value we believe exists within our IP portfolio, and we are taking steps to highlight its value under different scenarios. We are developing a multi-prong strategy around our IP portfolio, which includes assessing its value, utility, and deployment in the global digital ecosystem. We believe that our IP can be monetized in various ways by pursuing recoveries for past and ongoing infringement, entering into IP licenses and software licenses with embedded IP, and entering into other arrangements with partners to purchase, finance, and or help us further monetize our IP.

其次，我們將繼續探索新的和更多的方法來將我們的專利和其他智慧財產權貨幣化。我們認為，我們需要更好地展示我們認為存在於我們的智慧財產權組合中的價值，並且我們正在採取措施突出其在不同情況下的價值。我們正在圍繞我們的智慧財產權組合製定多管齊下的策略，其中包括評估其價值、效用以及在全球數位生態系統中的部署。我們相信，我們的智慧財產權可以透過多種方式貨幣化，包括追償過去和正在進行的侵權行為，簽訂智慧財產權許可和嵌入智慧財產權的軟體許可，以及與合作夥伴達成其他安排來購買、融資和/或幫助我們進一步貨幣化我們的知識產權。知識產權。

We also continue to explore opportunities to expand our use of artificial intelligence, either as a new standalone product or embedding AI into existing products. Finally, we remain committed to completing our digital assets and blockchain ecosystem for consumer and customer engagement. We will continue to move toward creating a decentralized data and engagement economy to put consumers and small businesses in charge of their data and enable customers to reach and engage with them on a mutually beneficial basis. Why did we pause? The regulatory uncertainty for digital assets, including utility tokens and NFT projects, has been disruptive to our ecosystem.

我們也持續探索擴大人工智慧使用的機會，無論是作為新的獨立產品還是將人工智慧嵌入現有產品中。最後，我們仍然致力於完善我們的數位資產和區塊鏈生態系統，以促進消費者和客戶的參與。我們將繼續致力於創建去中心化的數據和參與經濟，讓消費者和小型企業掌控自己的數據，並使客戶能夠在互惠互利的基礎上接觸到他們並與之互動。我們為什麼要暫停？數位資產（包括實用代幣和 NFT 項目）的監管不確定性已經對我們的生態系統造成了破壞。

We continue to monitor the recent digital assets, regulatory, and enforcement actions, particularly around utility tokens, and are working hard to ensure our ecosystem remains compliant with the evolving regulatory framework. We believe it is time to continue implementing our vision and ecosystem while navigating the regulatory uncertainty. As such, we expect PhunToken to evolve and play an important role in our ecosystem, PhunCoin to evolve and be the primary product and commercialization focus of our ecosystem, and PhunWallet to evolve and remain as the primary mobile-first connection for consumers and small businesses to the ecosystem.

我們將繼續監控最近的數位資產、監管和執法行動，特別是圍繞實用代幣的行動，並努力確保我們的生態系統始終符合不斷發展的監管框架。我們相信，現在是繼續實施我們的願景和生態系統，同時應對監管不確定性的時候了。因此，我們期望 PhunToken 不斷發展並在我們的生態系統中發揮重要作用，PhunCoin 不斷發展並成為我們生態系統的主要產品和商業化焦點，PhunWallet 不斷發展並繼續作為消費者和小型企業的主要移動優先連接到生態系。

We are working with Securitize to finalize and intend to officially launch fund coins for trading in the next several months, barring any unexpected digital asset market developments. In parallel, we expect to file a Reg A offering for PhunCoin, to enable future purchases of the assets. We will provide more information on our digital assets ecosystem, including PhunCoin launch, and the offerings during quarter-four 2023. I would like to open the call up now for questions through the operator. Operator, please go ahead.

我們正在與 Securitize 合作，最終確定並打算在未來幾個月內正式推出用於交易的基金幣，除非數位資產市場出現任何意外的發展。同時，我們預計將為 PhunCoin 提交 Reg A 發行申請，以便將來能夠購買這些資產。我們將提供有關我們的數位資產生態系統的更多信息，包括 PhunCoin 的推出以及 2023 年第四季度的產品。我現在想透過營運商進行電話諮詢。接線員，請繼續。

(Operator Instructions) Scott Buck, H.C. Wainwright.

（操作員說明）Scott Buck，H.C.溫賴特。

Hey, good afternoon, guys. Thanks for taking my questions. Just a couple of quick ones from me. First, Mike, how quickly do you think you can monetize our token and wallet? And what is the additional investment, dollar-wise, required there to get it to a point that you can monetize it?

嘿，下午好，夥計們。感謝您回答我的問題。只是我的幾個快速的。首先，麥克，你認為你能多快將我們的代幣和錢包貨幣化？從美元角度來看，需要多少額外投資才能將其貨幣化？

Yeah, pleasure to meet you, and thanks for the question. We've done a lot of the work, plan simple. This goes back two or three years, as I understand it, I've watched the company from the outside during that period of time. We don't expect a ton of incremental investment to be able to bring the assets to market, really at all.

是的，很高興認識你，謝謝你的提問。我們已經做了很多工作，計劃很簡單。這要追溯到兩三年前，據我了解，那段時間我從外部觀察了這家公司。我們根本不期望大量的增量投資能夠將資產推向市場。

How long will it take us to monetize? Our Chief Legal Counsel is working through it right now, along with some experts in the area of digital assets, to figure out how all these things are linked together. The sequence and timing associated with that, we believe that we're going to be able to be fairly definitive about that within the fourth quarter here, which really means in the next few weeks. So stay tuned, please, for more definitive guidance on the when of this. But from an investment standpoint, we don't expect to consume a lot of cash and getting to the starting line, so to speak.

我們需要多長時間才能獲利？我們的首席法律顧問現在正在與數位資產領域的一些專家一起研究這個問題，以弄清楚所有這些事情是如何連結在一起的。與此相關的順序和時間安排，我們相信我們將能夠在第四季度內相當確定，這實際上意味著在接下來的幾週內。因此，請繼續關注何時發生的更明確的指導。但從投資的角度來看，可以這麼說，我們並不期望消耗大量現金並到達起跑線。

Okay, perfect. Thanks for that. And then second, on Lyte, I guess I'm a little confused by the commentary on the call. Are we winding the business down or is there a potential sale opportunity or both a little up in the air at the moment?

好的，完美。感謝那。其次，在 Lyte 上，我想我對電話會議的評論感到有點困惑。我們是否正在結束業務，或者是否有潛在的出售機會，或者目前兩者都有點懸而未決？

(multiple speakers) For sure. Go ahead, Troy, why don't you -- put a lead on that.

（多個發言者）當然。來吧，特洛伊，你為什麼不——在這方面帶頭呢？

Okay. Hey, Scott, thanks for the question. Yes, we've used terminology winding down or exiting and so we're pursuing new courses preparing to talk shutdown or sale. So we're working both of those paths. And should either direction, haven't wound down by the end of year.

好的。嘿，斯科特，謝謝你的提問。是的，我們已經使用了術語“清算”或“退出”，因此我們正在學習新課程，準備討論關閉或出售。所以我們正在這兩條道路上努力。無論朝哪個方向發展，到年底都不會結束。

Okay, perfect. That's it for me, guys. I appreciate it. Thank you.

好的，完美。我就是這樣，夥計們。我很感激。謝謝。

Thanks, Scott.

謝謝，斯科特。

Howard Halpern, Taglich Brothers.

霍華德·哈爾彭，塔格利奇兄弟。

Good afternoon, guys. So Mike, if you could talk a little bit more about, I guess the software, the pipeline of engagements that you envision occurring in Q1 of next year. Could you, I mean, add a little context to it in terms of maybe initial engagement size and then the opportunity within each engagement to grow -- really to grow within each engagement?

下午好，夥計們。麥克，如果您能多談談一下，我想是軟體，您預計明年第一季發生的合作流程。我的意思是，您能否在最初的參與規模以及每次參與中成長的機會方面添加一些背景資訊——真正在每次參與中成長？

Yeah, you bet, [Jim], happy to do that. So we have an existing software business. The performance of that software business has not been what anybody expected, and that's a big part of the reason I'm here. What I'll say is this: we have and a few dozen opportunities in the pipeline right now across hospitality and healthcare. We find that the health care opportunities are going to be larger, probably on average, three times larger in terms of annual revenue than the hospitality ones for a number of different reasons, not the least of which is the size and the visitor traffic through these facilities. Also, there's a different way of looking at calculating the return on investment for such a thing.

是的，你敢打賭，[吉姆]，很高興這樣做。所以我們有現有的軟體業務。該軟體業務的表現並沒有達到任何人的預期，這也是我來到這裡的一個重要原因。我要說的是：我們目前在飯店和醫療保健領域擁有數十個機會。我們發現，由於多種不同的原因，醫療保健機會將更大，平均年收入可能是酒店服務機會的三倍，其中最重要的是這些機會的規模和遊客流量。設施。此外，還有一種不同的方法來計算此類事情的投資回報。

But with that said, we expect to enter our into a handful of new contracts yet this quarter and then into the first quarter of next year. That are going to range in value from something like $50,000 annually on the lower end for some of the smaller resort et cetera properties, to more like $150,000 or $200,000 annually for some of the hospital properties. Now beyond the initial sale, which is typically going to be a fixed contract annual fee for a term of typically three to five years, we are pretty frequently seeing upsell opportunities in both segments of the business. So for example, you'll have -- there's a lot of acquisition and solidation in hospitals, so you'll see additional facilities being brought online.

但話雖如此，我們預計將在本季度簽訂一些新合同，然後進入明年第一季。其價值範圍從一些較小的度假村等物業的每年 50,000 美元左右，到一些醫院物業的每年 150,000 美元或 200,000 美元左右。現在，除了最初的銷售（通常是為期三到五年的固定合約年費）之外，我們經常在這兩個業務領域看到追加銷售的機會。例如，醫院進行了大量收購和整合，因此您會看到更多設施上線。

And there's a rough proportionality between the number of square feet that we're covering and the fee. So if we double the size, we roughly double the fee that sort of thing. And then in the hospitality segment, we'll often see opportunities for us to create more digital engagement with the guests by adding additional features into the application. So imagine the case, for example, and this is the real live example from one of our large hospitality customers: think about digital key. So instead of using plastic card to use the mobile phone to enter the door. That's a big area of investment for lots of these properties.

我們涵蓋的平方英尺數和費用之間大致成正比。因此，如果我們將規模擴大一倍，那麼費用之類的費用就會大致增加一倍。然後在酒店領域，我們經常看到透過在應用程式中添加附加功能來與客人建立更多數位互動的機會。舉例來說，想像一下這種情況，這是我們一位大型飯店客戶的真實例子：考慮一下數位鑰匙。所以不要使用塑膠卡而使用手機進門。對於許多此類房產來說，這是一個很大的投資領域。

And we can control the digital front end of that key experience. So those are a couple of vectors. Anecdotally, I've seen a couple of them accounts that have grown by roughly double within a 2, 2.5, 3-year time frame, as a result of a couple of these phenomenas that I mentioned.

我們可以控制該關鍵體驗的數位前端。這些是幾個向量。有趣的是，由於我提到的一些現象，我看到其中一些帳戶在 2 年、2.5 年、3 年的時間範圍內增長了大約一倍。

Okay. And then in terms of what the strategy is going forward, in terms of direct sales versus using your channel partners, how should we look at that over the next year or two?

好的。然後就未來的策略發展而言，在直接銷售與使用通路夥伴方面，我們該如何看待未來一兩年的情況？

We're going to continue to have a direct sales operations. In fact, I'm going to be bringing some of the old band back who were instrumental in helping us drive to the $25 million number that I mentioned earlier on the call. These are people who really know how to sell. And so, our direct sales operations will continue to be supported account-based marketing, content marketing, really establishing ourselves as a thought leader, and then getting our customers to tell their stories to the market as well.

我們將繼續進行直銷業務。事實上，我將帶回一些老樂隊，他們在幫助我們實現我之前在電話會議中提到的 2500 萬美元目標方面發揮了重要作用。這些人真正懂得如何銷售。因此，我們的直銷業務將繼續得到基於帳戶的行銷、內容行銷的支持，真正將自己打造為思想領袖，然後讓我們的客戶也向市場講述他們的故事。

We will continue to invest in our relationships. And I mentioned Cox Business and Siemens Connect, too, there are numbers of others, including by the way one of the largest digital key providers in the world, actually, that had become a part of our partner ecosystem. The number of deals that we have in the pipeline right now approximates a third of the pipeline from the standpoint of deal count. It represents more like 45% of the pipeline in terms of dollar volume.

我們將繼續投資我們的關係。我還提到了考克斯商業和西門子連接，還有很多其他公司，包括世界上最大的數位密鑰提供者之一，實際上，它們已經成為我們合作夥伴生態系統的一部分。從交易數量的角度來看，我們目前正在處理的交易數量大約佔待處理交易數量的三分之一。就美元金額而言，它大約佔管道的 45%。

So we're finding that the channel deals, they come to us because of those synergy reasons that I described earlier. And we're finding on average, they're a little bit bigger than some of the directly sourced deals. So we'll continue to invest in cultivating those channel relationships, in addition to running our direct sales team. It's a complex technical sale, which means that we're providing a ton of support for the sales process to our partners, -- when they're present in the deal. And so we'll continue that intimate partnership at the deal level with those channel partners.

因此，我們發現通路交易之所以來到我們這裡，是因為我之前描述的協同原因。我們發現，平均而言，它們比一些直接採購的交易更大。因此，除了經營我們的直銷團隊之外，我們還將繼續投資培養這些通路關係。這是一項複雜的技術銷售，這意味著當我們的合作夥伴參與交易時，我們將為銷售流程提供大量支援。因此，我們將繼續與這些通路合作夥伴在交易層面保持密切的合作關係。

Okay. So thanks and look forward to the upcoming quarters.

好的。因此，感謝並期待接下來的幾季。

Thanks so much. Appreciate the call.

非常感謝。感謝您的來電。

(Operator Instructions) Ed Woo, Ascendiant Capital.

（操作員指令）Ed Woo，Ascendiant Capital。

Yeah. Thank you for taking my question and welcome to Phunware again. My question is, it sounds like you're targeting some bigger hospitality clients, so it looks like possibly bigger deals. Will it require a greater investment in the sales cycle as well should we expect the sales cycle to be extended as these deals appear to be bigger?

是的。感謝您提出我的問題，歡迎再次來到 Phunware。我的問題是，聽起來你們的目標是一些更大的酒店客戶，所以看起來可能是更大的交易。是否還需要對銷售週期進行更大的投資？隨著這些交易規模的擴大，我們是否應該預期銷售週期會延長？

I think that's a perfectly reasonable assumption. Let me speak to that a little bit. So we will continue the individual property, rinse and repeat selling cycle. I'm talking specifically about how hospitality healthcare is really the same thing. In parallel with that, and so what I'm looking for is a little bit of an all-of-the-above strategy. And what I mean by that is, yes, we'll sell individual properties.

我認為這是一個完全合理的假設。讓我稍微談談這一點。因此，我們將繼續個人財產、沖洗和重複銷售循環。我特別談論的是酒店醫療保健實際上是同一回事。同時，我正在尋找的是上述所有策略。我的意思是，是的，我們將出售個人財產。

But I want to bootstrap my way into a real conversations with the largest hotel brands in the world, as we start to develop critical mass with their individual properties. And so, imagine a case where we take existing hotel loyalty app that has tens of millions of users, and we're able to incorporate our location features, including the marketing and the wayfinding solution into that application. So overnight, we get an enormous amount of usage, which we believe is going to be directly proportional to the value that we can charge for that, frankly. And then ultimately, the value we can extract from the overall ecosystem to include the digital assets components as they come online.

但當我們開始透過他們的個別酒店發展臨界質量時，我想引導自己與世界上最大的酒店品牌進行真正的對話。因此，想像一下這樣一種情況：我們採用擁有數千萬用戶的現有酒店忠誠度應用程序，並且我們能夠將我們的位置功能（包括營銷和尋路解決方案）合併到該應用程序中。因此，一夜之間，我們獲得了大量的使用量，坦白說，我們相信這將與我們可以收取的價值成正比。最終，我們可以從整個生態系統中提取價值，包括線上的數位資產組件。

So by their nature, those deals will take longer to run, but we'll be able to mop up not individual properties, but hundreds, perhaps thousands of properties at a time as a result of that strategy. So two different approaches, two different timelines for maturity. I wouldn't be at all surprised if it took a year to incorporate our technologies into a major application like the one that I'm talking about. But, in the meantime, we'll continue the blocking attack at the individual property level.

因此，就其本質而言，這些交易將需要更長的時間才能進行，但由於該策略，我們將能夠一次清理數百個甚至數千個房產，而不是單一房產。所以兩種不同的方法，兩種不同的成熟時間表。如果我們花了一年的時間將我們的技術融入像我正在談論的這樣的主要應用程式中，我一點也不會感到驚訝。但同時，我們將繼續在個人財產層面進行封鎖攻擊。

Thank you for answering my questions, and I wish you good luck. Thank you.

感謝您回答我的問題，祝您好運。謝謝。

Thanks, sir.

謝謝先生。

It appears we have no further questions at this time. I'd like to turn the floor back to Mike Snavely for any closing remarks.

目前看來我們沒有其他問題了。我想請麥克‧斯納夫利 (Mike Snavely) 發表結束語。

Thanks a lot everybody. We've likely tax the patience of our investors on. We believe that we're going to be in a position to put the company back on a solid financial footing, and Troy spoke to that in detail, and we would expect to have additional announcements forthcoming in the coming weeks and a small number of months. But I came back here to finish the mission.

非常感謝大家。我們可能已經耗盡了投資者的耐心。我們相信，我們將能夠讓公司重新建立穩固的財務基礎，特洛伊詳細談到了這一點，我們預計將在未來幾週和幾個月內發布更多公告。但我回到這裡是為了完成任務。

I have a lot of respect for the leadership that preceded me for sure. But I believe that this fresh look at where we can take the company is, is exactly what we need at this moment, and I wouldn't be here unless I believe that we have a strong likelihood of success. So we thank you very much for your attention and patience and please stay tuned. Thank you.

我當然非常尊敬我之前的領導。但我相信，這種對我們可以將公司帶入何處的全新看法正是我們目前所需要的，除非我相信我們有很大的成功可能性，否則我不會在這裡。因此，我們非常感謝您的關注和耐心，請繼續關注。謝謝。

This does conclude today's program. Thank you for your participation and you may disconnect at any time.

今天的節目到此結束。感謝您的參與，您可以隨時斷開連線。