DGLY - Earnings call transcript Q4 2020

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Operator

This conference call may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and the Section 21E of the Securities Exchange Act of 1934. The words believe, expect, anticipate, intend, estimate, may, should, could, will, plan, future, continue and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters identify forward-looking statements. These forward-looking statements are based largely on our expectations or 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. Therefore, actual results could differ materially from the forward-looking statements contained in this document, and readers are cautioned not to place undue reliance on such forward-looking statements. Digital Ally will undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. factors adversely or flows impact needs. of differences to and variety could and revenues, wide could contribute cause such capital A profitability, cash can to be statements the will, There fact, accurate. assurance this in prove in document forward-looking or transpire no be contained that morning. Good Sia, will name conference be operator is My the today. and I I to and welcome time, Results Conference Operating Year-End Call. to the this At everyone would like Quarter XXXX Fourth mute All to been lines on prevent placed noise. background any have there will be After the session. question-and-answer speakers’ remarks, a you. Thank Instructions] [Operator time, like over would this to Stan conference At turn the I to Ross. Please go ahead.

Stan Ross

Digital -- today. Thanks, joining than and looking can’t I that’s have excited coming and year that struck. for XXXX. during for see be some which they little also first the what quarter, what give pretty of they’ve I individually were everybody, insight a for tough exciting pandemic in was of really made could and just thank future thought and Digital be elaborating the bit team a activities XXXX bit us when and we’ve a you XXXX we again, adapt a all a proud sacrifices as we I’m the better enough had originally through way to that much done to be some top recent of and everybody the things the beyond. personally some to much been have us be XXXX of it But on like amazing we’re pull little will wise, of that, and as recap lot able the year of really they corporation been couldn’t On things Ally on

filed with into the some be over Heckman, on to turn I’ll the be where of So, shortly. the activities that it is you numbers going XXXX status that XXXX, XX-K me. I to mentioned going today, we’re insight in and But even recent give Tom, you. will Tom Tom have will the at recap CFO,

Tom Heckman

it us this you, the But Form this don’t we to connectivity It’s Thank full are been you make please Form Stan, aware view file to and want I a at, has at take of at hope There what and do I SEC appreciate XXXX some we’re afternoon. morning. XXXX. long. any joining issues, look in too a everybody that and XX-K I sitting event, XX-K. of delay happened end during the the where more going

biggest price us share a Quite was position. as provisions our to deficiency on in meet order the equity we we the XXXX of continued listed one back, NASDAQ. the we look gave frankly, our they regarding And of you those net listing stay entered challenges deadline the year certain had well challenges. have to If a NASDAQ received with lot that letter as

million was obviously, entered So, the on was it, We of we was would than get new a working knew before less new that looking one much channels. that I $X hit and were that with business. teams COVID at And us. new We pandemic really teams for And we and the changed dynamics business were that, we going And grow had COVID rich position. XXXX top time, and $X.X down. pretty the number the going call COVID of Also, didn’t of be thought to. the we had that stockholders’ net a shut million. involving depths in basketball had even situational And we difficult of NFL corner. source priority course, liquidity And that whatever our the a security deficit in of and combined. to capital for and we baseball cash realize that we around revenue frame. to the and try time how of the revenues we And were, March-April us teams It of obviously and what to crisis.

began and a pandemic. issues unknown lot we by known the COVID with represented it XXXX, issues of So,

on Here’s us. the actions throughout year successful and very XXXX I that think, the made, year we took early a for that

and First listing and to back. warrants. We’ve that securities, and approximately foremost, we not through we were status, able raised, NASDAQ cash with haven’t $XX any stock million including take and cash of of offerings, the common that. capital and that we raised convertible gain deficiencies full various had problems looked care With

took of capital. raising one issues was our biggest care So, of through the of we that

our We new also We some line, channels, product all cash with and Shield disinfectant the new including Shield million into well. that as ThermoVu of $XX off the including virtually raised. somewhat other XXXX in and the invested of paid PPE interest-bearing during debt lines we

well that on raised to in enforcement upfront subscription some capital and out outlay and then that as subscription payment. software used the capital have send a to buy of both, as monthly to also get because business commercial we on and law We the back business model, expand we our hardware legacy produce takes our model it

some sheet or during terminate XXXX. and $X We going million in litigation into million So that, that terminate We to to cash for roughly resulted to the were the took a the were financing million of obligation able had year. balance it we gain do. on $X also able $X.X us

we the So, as in well and good we our to We’ve COVID at SG&A. pandemic, primarily we operations At got it XXXX the And of in the that we of very work. it the had put as I our same it. wanted, time, review of did, look undergoing balance SG&A my reflected view, job sheet. our we to results a really money mean, were or at crisis time. spend But because a --

SG&A -- well well that apply needed over a the $X.X and and was the The the PPP WatchGuard in we mean $X.X that. that. year, which the able of spend very, going spend $X.X If for loans to $X.X to XXXX. which by XXXX, portion we $X very what got million, That in going SG&A change, loans reduced so. exclude happened million, million about XXXX was was we’re We We benefits forward. was you settlement, the as million as were our affect in SBA. in PPP million was And that reap later actually the change of EIDL did from forgiven that and or I

So, that well. action we did as

of and of some front how challenges issues XXXX, XXXX, it by able to new in handled service the ability revenues were to extended that loss over down of get product X% increase XXXX to were revenues on. And Shield contributed and was you our then, COVID the $XXX,XXX look due new customers, line, budgets year-over-year. and successfully our the to all in service customers existing for about $X.X early XXXX. which we pandemic A So, somewhat or lot of reduced the primarily product P&L of roughly at if million the even regardless we The our about revenues. during due travel warranty

a don’t not upfront, that. model, when If with you’re extended you you you sell think about move to subscription warranties so selling hardware more it, of

revenues actually it Shield service the make and line, -- moved in All-in-all, $X.X helped up well, to net in like an So, as extended or did, will our primarily couldn’t able of net to the do was experienced go march down, COVID-XX the XX% travel that and we’ve installation by turn just from we -- sales so a pandemic. that year-over-year. give What because make at has look declined, gross line. warehousing restrictions At get revenues That’s we XXXX, margin for us imposed here XXXX installations margin by you subsides it which the and our obviously. We loss at and and product nice Also, which expect our we site so one expense the would if as We XX% believe looks like after the such to improvement, improvement reduced million that XXXX but weren’t that three COVID-XX forth. early on on did. year-over-year. -- on a that the because our it was and pandemic its be the margin years. our around continue it improved year. may upward, for to to us smaller line That’s that, increase loss dropped, gross well and cost and up two quarters some to gross of last primarily we of margin warranties

sheet. XXXX, the the right we year, it’s but direction hope going were We’re than end challenges a XXXX, did better and to vastly in we XXXX. deal the better breakeven, certainly with which reported not had that we in be regardless to still we balance of in At of we in

$XXX,XXX $X sheet balance of our at at ‘XX. in cash sheet was look our you versus ‘XX end balance If year-over-year, the million

end working $XXX,XXX Our positive the capital net working quite -- of at our capital XXXX million was improvement. versus in an balance XXXX, $XX

Our a equity of $XX million million so of versus to stockholders’ really $X turnaround deficit million, a year-over-year. increased $XX

we are which $X.X the $XXX,XXX left think Our debt XXXX. versus I EIDL in down million have long-term that’s is to and the $XXX,XXX, -- loan, loan, obligations of now SBA a payout,

in has the to financial able going since sheet concern XXXX. out because been And the pull that our was improvement year-over-year. balance improvement in of the balance -- were So, sheet, language quite we an the statements in

regarding disclosures going and have the look opinion. concern you don’t if opinion exception in So, at XXXX, audit liquidity the we the

we’re everyone $XX proud X-Ks million sheet seen which registration having our totaling two today. that -- Recently, very in the on balance into has we all filed, on in capital. sits So, draws two That’s some new hopefully, completed of cash, as accomplished a XXXX. year of we there’s that, straight about our of and like shelf that shelf

obviously, did going we uncertainty thought market. given in play raises. at we why was favorable, that and XXXX. the conditions those ask how the of pricing might out We was the of COVID And crisis the the itself You to looked

those that business. in investment, ahead what raised went by in registrations and XXXX quoted So, invest What will really is ways. two million. beyond we public us we allow two do there’s and mean our And to obviously, $XX and

you You can do we’re several commitments, both. or can writing, certain acquisition. that which line we through completely current -- have no of acquisition at candidates than it nothing or And our some in some do are definite, product it acquisition We organically of us outside more had nothing talked looking appeal our have some or that to product line. and complementary current are to candidates, others, multiple to but

to at use And able hopefully, down grow a different two or lot and of through business those candidates. we’ll looking of to down some we’re So, the cash be nail one the those of acquisition. of one --

expansions, in to primarily grow We also our organically plan through line. product Shield

come PPE that with medical -- at adding along in new long-term offerings and looking contracts contracts hospitals with organizations We’re that. supply

sprayer that our Shield razor be the electrostatic model, new also Shield Gillette they then We’re a would complementary you looking kind of sprayer, introducing sell at where use product product. line, to a somebody our

looking there different balance we’re the having sitting got not shots of in of it moon at the obviously, they’ll candidates on and in. or some grow And we’re now shareholders. company. hopefully, And interest anyway, able grow We’ve ways the very the to to looking can business. XXXX hopefully especially transaction we Stan. over anything. XXXX and based flexibility down to that we enter it to So, lot you bullishly, to were our flexibility And cash much, going spend type see early a accomplish with much turn on. we now was have a now we not But, some in the that to All-in-all, XXXX, progress as I’ll value on sheet. And road. return But, year, have business challenging that, stronger a what to that some are back

Stan Ross

-- to Yes. Shield play -- And guess, turned a I good said, line out Tom unsure -- there And moves work going continue Thanks that and with the to early Tom. said, how of on, we was was lot, while out nervous us will expand. again, product but I the out, for quite, pretty as to made. what some like think, XXXX was I everyone think again, XXXX, I

a about to future value it to strategic, said, to the sure amount and acquisitions to there Company. stuff We not A want while excited do we’ve it’s holds. Tom that tremendous continue the definitely that foolish, be immediate we continue we want the of looked to be make it brings get and traction couple that at, of

we’ve those about at. that So, talked We’ve pricing. looked

COVID were not and same companies Kool-Aid, we access of the but only people Sometimes of A good because some valuations spiked, that own are to their to aren’t lot Kool-Aid, drinking it have. the the capital some be unable out there continue own time, And fortunate opportunities to just have realistic. at their of climate the up. pop to may the are

at little we would Ally. some to often look things nice good opportunities to get that so, continue bit for a back Digital And normalcy really very opportunities to progress as be

The want I sight other thing our lose is to law on that not enforcement.

We going with, to are have reception of and subscription not enforcement in law communities. with of agencies. flowing of is money the for a Tax that of And the lot a lot upgrades rolls amount positive lot a tremendous a had said, we’re police responders. model that first agencies being for down

we truly there So, getting legislation will for been the we’ve look some some their national out package funding them national of because could fact guess, -- to talked asked play, a that law get coming for they’re and comment the assist, and that to are enforcement on communities believe, there. feedback sit also the been I while some to that do we of the about, actually into the, be that’s we under assist looking

So, given a R&D haven’t getting next our we’ve as quite with version cameras, away. tremendous research product our is features. law be about unique up with a also new in excited amount and of of products on Very launched our as enforcement. development far body right to ready That our

where it International of And ought like is could get your we even -- the really will to conferences get Chief excited some the Police, IACP, what to back the industry. to opportunity the it to products. of the you so, of impact And having have the new showcase for which Association be -- in

body very well. its the about are products, EVO products, Shield the doing cameras So, still very, excited growth.

see the strategic Q&A. done. floor really I very be have the the said, impact I think, being XXXX will go line With ahead I will have will will think, Ally, some may up hopefully nice said Digital that for that then open you and this mean I for we acquisitions in that Shield and

Operator

[Operator Instructions] will Please Rommel And from come the Capital. Aegis with first Dionisio go ahead. question

Rommel Dionisio

my Good morning, taking for Thanks gentlemen. questions.

Stan, So, cabs. side, I on talked think, of commercial conference COVID some the like you’ve calls, of prior taxi in about obviously, impact, the the

just We’re talked Are first coming points quarter any for expected. their Airlines, hear better starting American now, data -- but maybe example, the data seeing that? points at in that like about being not you bouncing is if dramatically business could seeing the Are wonder add of tourism there. picking of you to -- with line those some that of up, I some off least lows? than that color any you

Stan Ross

Yes. the amount stepped annual Great we either subscriptions question. in on that heard I when the COVID subscriptions, a and that there And you’ve of yes, before client in, I monthly that mention we think a have had of out all were us cruise customers mean, industry. tremendous some or base

that of events. earlier, as equipment tourist mentioned this we the from in as far so, clearly taxi and other very And did also as sure, but cabs that XXXX, areas, impacted as the well thousands Tom little have morning we contribution in industry we actually had our for

Now, pick to said, seeing know cruise back are that lines picking for has sell taxi cabs again. that Clearly, -- are being the We up. some the of started even again. we up starting us the

We’re up. seeing industry the picking side overall of commercial our

and and XXXX, glad well. started it. hard to impacted I’m as continuing didn’t we’re we address revive that that We yes, to -- you we in grow was majorly question. very it So, that seen But brought on up really area itself, have working

Rommel Dionisio

the from guys to addressing in a think rapidly and kudos and And year on -- revenues and need for for question said I to maybe boy, responding driving, that. $X.X it and just million you Great. you follow-up Shield just

seem that those was you’re drop-off business look your in could like we more demand just as if that. just forward, way. to So, of bit touch of wonder It doesn’t guess, your you did that just on for be clarify in I at -- getting just Was orders wanted replenishment declining in QX going I would there that. QX? I we a product any to QX. that customer a from and so QX, to base sell-in initial

Stan Ross

and to demand allow I product, reach for increase that pretty out we’re into Again, for we that the now the to to this granted in volumes do be some very in I Yes. found there. confident to large the we in very in A into were sitting stuff lot were go the some of and very we little time. at going on are But, able we’re think, buying feel regards going you’re gap a, margins cut able be We bandwidth much top quantities a the of right, had. because what greater. the But, we’re to a the the the that you’re should maybe and and end fill, that immediate bit. that fact ourselves ahead manufacture distribution power problem, going up But, mean, salesmen to channels with start go able on, could users to bring doing to much that to bit you stronger. want margins will and channels we’re with additional us little so we going to filled being we to we line, make the that fill early inventory the little just say, that there -- right. were need to our our

the line on interview inventory, to control accounts. almost I to think, the got for continue we’ve and daily under expand Now, -- major bring people chain, and to the supply continue our to

to We announcements what if where to be, I soon. say, start line, you do consumer where to I’m the on really not some Shield even Depots say, let’s picking products, are the call national and in or don’t world surprised, you in the that’s don’t see and whatever be the line. with to headed, the going hopefully offering believe I Shield think which the very nice it’s particular we capable should continue at some stores refine I possibly want chains, Home this anyone level, product this of all they’ll of be up think

XXXX. optimistic going very into Shield about So,

Rommel Dionisio

quick Great. -- Stan? But, language And looking add major just me. any in the X,XXX press I you that national feel see just the know, of And release the about cameras. that in I for contract can for was obviously I’m last foreign one put about you so maybe is there, one add the sure. just police anything like you -- only color don’t much, can say can mean, I you comfortable just adding? you the

Stan Ross

think we for I that mean, ready. doorstep, clearly when almost more in there the those to a continue they Yes. attractive were new that Obviously, be have interested one to it’s -- product to talks, product I on be will be even continue to the the year well them. continue of lines we is ago over they’re

unfortunately, I product that features So, it, we’ve ball need think, -- with the mean, their it’s and I the it’s is need what that they over got the core. just -- for. the asking they’re price at they in above

Just tourism got they a up. start And and more happen seeing that’ll think picking capital they pulling the their when all get to can see lot comfortable trigger. in if I feel also

I think, important to for it’s very that. them

I it’s going but think it a it’s of I believe So, -- happen. just to still matter time,

Operator

Bryan Capital. will question Aegis The Lubitz from come next with

Bryan Lubitz

guys. morning, Good

in you couple I earlier touch mentioned call, base a and the SG&A. want Tom, of So, on, things to

that there? connection financing, down year-over-year you roughly strip with my come guys guess, in the in that the to the decreasing? XX% right past I charge $X had numbers out If does litigation Is for, million the of you

Tom Heckman

-- Yes. if with Well, in WatchGuard. that me million, PIA. the patent But XXXX. wasn’t was onetime exclude was That settlement. check that let that here. litigation you that SG&A $X.X a credit necessarily was down remember, occurred That

from So, yes. before. the it’s away And half, $X.X over well it million, put that year

Bryan Lubitz

cash going And towards then, Awesome. your position.

you far, million. all the of raises offering, so that the direct the $XX which, $XX said million you saw that $XX XXXX. We end at were then you this Tom, proceeds mentioned guys You the the and did had $XX year roughly million million

guys you now? right are cash $XX roughly million sitting So, on

Tom Heckman

we’ve as balance the year, recall. million million Well, $X actually, we’ve And net, of we sit the not had -- got And the today. then, as sheet raised I X have on $XX what we $XX we at that’s about end million.

Stan Ross

Yes.

know, our One tremendous of Bryan, a with things gave capital, buying us regards of that the we obviously, to did, strength that you in amount power. as

from able the And a so, we instead us the probably being in banker aggressive pay XX%, original some saved schedule were XX% that bank, some of that of off on sitting the quantities. of were we cost buy it X.X having and to sidelines, smaller in components having to because getting

opportunities just put that good but we’re for we money So, nice a use of looking real that still to amount real sitting on those at. cash

Bryan Lubitz

All right.

your to So out I now market the on we identical that that, you’re million trading roughly numbers. at is cap leads in thoughts cash $XX those me if strip guys’ almost where your are am is, What that fact cash?

Stan Ross

Yes.

definitely I of just the mean in broker. that that to the get or there the -- I And I Ally be the in got we cash to product appreciates now, value what’s it the of trading value hopefully, be the greatly to it. have You’re better got of has. commercial divisions to concerning don’t it. don’t job a lot have there’s of enforcement, law Shield line. right getting get know a balance, the our that yes, close all Digital And I word out whether Yes, we Bryan, do equivalent we Company. potential the

Bryan Lubitz

me. Okay. Yes, to it’s mindboggling

I wanted that. were what you guys’ know just thoughts to So, on

Are line? guys the Now other are that you sprayer electrostatic in development to guys for you a mentioned in areas? Is utilize the on. Shield that part earlier that service of looking you product

Stan Ross

Yes.

as the get safer. would say, product utilized in there it’s adaptable. is the a effect, far number utilizes service the to what a special be for very when our that I can amount we’re as also advance, let’s very, the compared battery-operated only So, industry product. very it’s Shield maximum for in that couple things, necessary sprayer to assist be doing whatever very mean operate on robust. of different, or also, it football electrostatic whether the not It’s by really is go to disinfecting. obviously, we design I the of It’s The there’s what side, power the And designed we designed, of and it pumps. And -- a say, that can lot in

So, we and up. have it to hose it ground more the the is the then having don’t happening the be to floor at the that of It’s actually connected of pump tank on, side pushes actual the right and goes the there electrostatic ahead end and hose.

overall it’s lot get where a it we but defined. with of that, the line, that at Really once about to possibly it’s excited well So, it part that finished really built. safer off soft going look come package. we XXX have tooling. We We’ve got not getting box the way as already do the stores units

big XXXX. as -- tooling. a again, do hard here able be as too And it will impact was And It’s pricing. of us particular the in number I that lot on to We that have a tool. nice it will help a think to going far XXX,XXX. should We’re we -- capabilities

Bryan Lubitz

right. All

coupled line, two another for have sounds very time. you the It’s Shield. new with I guys your more. So, Obviously, thank obviously which And that much exciting.

an Because distribution much in didn’t releases. with out Where see are deals line which with with year, ThinkEquity. you The that? guys of ThermoVu really other update you here with of guys for was last we us press any these the that on ThermoVu the came exciting was

Stan Ross

Yes. Still demand very for the product. good

or even be certain the to whether to it starting to are can to up people do mask you to and school class from will models -- whether or And understand able fever. can put that going you recognition, it identify facial being also whether their of top-of-the-line are as lunch, recognition facial the one of think, also capabilities a it’s class in identify unit an I doors, -- the just And the to if not on. connect be hallway. there someone’s have in which it individual has whether kids product, sit to wanting running then, the

product still going think don’t good but not I at particular off very are regards a the products, putting much to COVID. is that’s wrong. and believe they anticipate vaccination So, because Shield bottom way that will it’s do believe matter you’re product there’s this say that -- just people surpass And we will clearly bit Again, little I’m we’re their is on and of to the it a guards going in running all. the demand past last tapering something a see the last, to down, fever, line in and COVID, if

coworkers And so, restaurant. whole infecting and/or going that of don’t but a bunch or you and be it want into just common kids may flu, individual coming a a

Children’s Mercy their sure while restaurants we had to have at So, to at Mercy we’re to that a very maybe seeing all to salons and our corporations I Hospital. big back, know avenues, them everything from, I think, enough, names, device go some say Children’s it headquarters. there’s hair from that -- corporate

and expectations, to so. do to up I lived will has ThermoVu continue believe So, it

Bryan Lubitz

right. All Awesome.

I’ll it do do it as in I’ll I have but more, parts. listen, two I and question, one actually two So, lied.

for dealing stock and been Act. with hearing been time going be year, Floyd, cameras. there’s eight Reform Police with a spike took has guys’ you that to obviously, and Your a long major the bread place coinciding as the in-car the our with we’ve for butter and years what the well seven, in I’ve we saw George the surveillance Last as been last dash of cameras with body inside

at passed we’re the First President’s what your we’ve the from guys’ then House. question well traction can that that about our tried obviously, thoughts as pill that talked it a earlier position is, is future? What in part passed piggyback seen effect to of into the as is as type hopefully of you tweet this put we to as you getting make we hearing guys market kind Senate, about moving I a in we well my question enacted? going the terms the in it of guys your to and Police cap. Act forward do we Reform that right are cash capital if as something last look and poison us year now where year. to And some looking know on of the in have Is your protect last here Are hand on well?

Stan Ross

really got come the only way regards authorize of again. capability to a the to allowing us some of think having putting can mean try we stock. type that’s I to That’s I preferred -- pill. of and to to in shareholders going the that series we’ve get down poison in really creative

So, I would they someone it’s And the and about what mean, definitely could with have. amount we’re that’s smallest of trading you’re amount trading mean of with our along you I we leverage I there buy and sitting unfortunately, cash do. where mean, cash. on hate come you own your to that at, minds.

concerning So, Bryan. us, it’s to

going to I level. now believe a enforcement, some mean, it’s we’ve some got The I some best on, -- I but to in a attractive had not think be cut of piece strong finally again, positive money, they’ve business getting it this paper. sometimes everywhere. always attractive just thing, Unfortunately, that a for to cameras a sure what our that passed but to think, that Street coming sheet. is growth, we and have body stuff this it can and the Illinois very pushback do regards going us, we’ve was knows do started that real of -- going the finish of balance at black from part mandated. And continues here. regulations I flat We’re see mean In there grant wrong really I whether of and stuff to I four national absolutely the corners just is make reasons a a typical get law in for there’s getting They mean, things to letting Bryan. some lot on. out we’re from there’s mean, can’t little other there, we some make of that it got continue white

deal, your a try to find to in but always Here’s we’re in for me. do. what put for to got going you this there else They something throw to there vote

think and they a out. they on little to their the do to day, do they so blue, cluttered do worse But job and respect that tools equipment do getting The got really to so going and up much women bit. and blue, straightened right. on you’re see get boys I it every that And it

money that mean, and And we I still so, contribute all yes, we and is the how it’s -- to flow. people just talk different legislation help. going -- about we believe to going time can It’s

But growth. that’s think in a piece can’t to to again, say and still of our I enough I the So, think products ‘XX. what that’s I be about going going Shield big do

Bryan Lubitz

Well, guys, time. to looking your all turnaround Thanks congrats your on XXXX. forward for we’re and cash the And position. solid

Stan Ross

Thank you, Bryan.

Operator

ahead. The final from GTM with [ph] go [ph]. Capital question is Please Charles Rosero

Unidentified Analyst

on thank couple I Gentlemen, this. for Hopefully, job appreciate the you questions. give can two, got simple me the Yes. call. across taking just it. and color of board. some everything Excellent I just you

how and moment share warrants cash exercised? your one would right Do you the prefunded be been about many first exactly And you the now? what of your at is count have told know The raises.

Tom Heckman

of all the now, prefunded warrants have Right been Yes. issued.

Unidentified Analyst

Okay. share right And out current a is off what hand? have that Do count number on you your now?

Tom Heckman

don’t I exact me, number roughly of in million. it’s The XX have but front

Unidentified Analyst

Because I had know I XX Okay. million.

they… So,

Tom Heckman

been prefunded the All have Yes. warrants exercised.

Unidentified Analyst

your lot I were you’re from a is, where and thinking from I people another big that better drag do, was on of product guys think question A Is your of reason definitely stand noticed an also there under Obviously, view that warehouses specific Shield a cash that that of any why because the Yes, it down. simple on area of you it more stock to But the view. your you of a to out stock. a pulling fact have that point point been the you the picked need on went inventory? I reason? website know some add Is and than products. you lot products probably was actually up out

Stan Ross

at mean, will situation, I timing at. good supply lot have, demand. and that products, quantities do able larger a things now and it’s accommodate us to products inventory. we’ll well, of have actually that a therefore, And looking mean we more bit one at larger looking Yes. good of shelf luckily, a will we’re we’re these much larger a to hopefully the quantity allow a getting is -- be make we We we’re I to on so some not the hand. of of is amount But, what I mean, quantities looking little facilities breaks. sort it right that run we the pretty want And a sure of have life.

to and to afford And know it. XX But quarter it got the coming, there before need they’re supply then, handle and sit days may for okay and so, be -- or say, get to that they can we they’ve it’s they a better. going

Unidentified Analyst

early it’s the speaking Any Great, looking straight or offer, side at? looking it And are you another know you a stock guys on would about, you’re are acquisitions And it’s just in it one, stage. be to the a Okay. guys build? cash be kind preliminary, would great. I cash

Stan Ross

think mean, recognizes and in low, want stock, mean, open-minded we’re open-minded. do leery earnout. in But, they obviously, of route, will of the caveats work. that and at there sense, I I about we’re a make equivalent we’re same be that themselves, to But, that to some we’ll sure it’s someone utilizing stock to is -- that maybe sit acquiring bunch at coming then makes in I valued probably time. quite make so cash. but right we’re getting And because going that have prove may be flexible of there got think, the right I regards a be we’re to a mean, our real we go deal I looking they’ve would stock something it. now, trying to at if like very we

Unidentified Analyst

Okay.

-- -- that get -- unit would to I’m seems Now, lot and forehead? Is over actually wrong. it’s a the a as Correct faster noticed ThermoVu And your taking the an I question if competitor or me the your hand is obviously, the correct by as that it that hand. temperature Is face. be competitive you accurate that checking false? is, ThermoVu a it the by because to advantage a have advantage someone me takes throw line a

Stan Ross

but devices. no, violating have correct. you’re their it No, only them the you’re not of is -- handheld a not or faster, mean, lot machine I

you’re so, more the up to throwing the It’s that out the sort risk, put about rule thing the you everyone’s much accurate. of can And six-foot there. violating But sit and it machine. there

you outside, all forehead, it’d mean, stocking board. on, have on Your cap the I one be if over a depending you’re you been on. didn’t have

as opinion, what not nearly our in accurate than the rest So, is. it’s

Unidentified Analyst

Excellent.

is final this Now, question. my last and

that? coming to the XK your going you you new first. to with near, Motorola on Now, competitors, And that know that version of get lawsuit of going go you a be on out on your are as Any color more out Can sort guys who’s out, guys EV everything. to and right some you upgrade to there competitors? lawsuit? to just HD took one a it know little give it’s going actually I like or I us color far a the them. bit even I anywhere had know settle as into of now rush

Stan Ross

Again, we into one is all XG. is of It pioneered cameras being just is when market. it system, hear clarity capability also on And ties the that so our also But Ally our have the body surrounding notch. amount Digital and really capabilities. never I’m device. I That patent finest when that There’s capability camera put our situations has, the -- tremendous of absolutely or have a out system, positively, you of It the should about body the developing has got we version in-car not believe in the above just of of features get And EVO camera it where the body turned very, its top on the of activation on. and and streaming. to what was picture excited Yes. has the going frustrated auto very I a well. company capital, of a next with happen. will be who like energy,

the able be anyways, to new be activated going -- they able are be be to such headquarters, devices even may that be. from need So if to

notch. going be It’s top money. the to spending We’re

Unidentified Analyst

offering right back years considered customers now you the current the now product upgrades have on sort a that Have some movement side? to old subscription couple that of of given the newer to maybe versions,

Stan Ross

Yes.

we and we capitalized attractive they a and the products have out well. We they there, at and to clearly I some together will will be or them. of very started, see that real products the for entities. have to who would very lesser some maybe of on of out our together database internationally the the have reach and that looking still the put say, -- first models trade-in try could mesh would. absolutely, take Meanwhile, connectivity, package will is a they we to But, older market, Because

version, be the very of version rid get they when So, or they’ll the older newer compatible.

Unidentified Analyst

looking decent-sized you -- Excellent. to you your you a And would guys my chain. field? product. guys one into a know went I that corporations restaurant question are the restaurant final one, Is major be guys Shield get of into was

Stan Ross

to happened. mean, has them are that I of market. national of several, more franchisees industry, of we’ve want sort the good food I a clearly into that whole been and importance say, it’s so -- Well, recognize chains, that

us. utilizing large we I see it’s for But, the products attractive going So, products, for both very liquids market what you’re out. to the chains the that clearly coming some to as Shield you’re and see very other a going think, some have of

Unidentified Analyst

job, guys. Well, excellent

And online I said. A main order, it obviously, an Shield is have doesn’t natural And like it. competitive think, the Congratulations. thanks call. my have lot advantages taking great appreciate product. it’s a the you the turnaround, one I product, plus. which it think did of seems I a a for comments And of

Stan Ross

the us hard. and that things to we And all up. investment ran -- some push it of very had. to -- shareholders, best you. I’m tried that our and we’ve these We thank I to you, benchmarks us thankful we us, in know do my all, that believe first done achieve much. maximize our Well, long, of of your a And help again, all and to time here. And will in out we’re I’ve employees wrap it just, for going very to but they’ve appreciate sort ran little of

We’ll be thank again So, you talking much. very all soon.

Operator

Ladies call. gentlemen, today’s in conference thank for participating you and

You may now disconnect.

Digital Ally (DGLY) 31 Mar 212020 Q4 Earnings call transcript