Financial Data and Key Metrics Changes - The company reported Q3 2025 revenue of approximately $1.55 million, consistent with the first two quarters of the year, but down roughly $600,000 compared to the previous year due to timing of larger customer orders [4][14] - Year-to-date revenue for 2025 was slightly under $5 million, reflecting a decrease largely attributed to quarter-to-quarter variability [4] - The net loss for Q3 2025 was $965,000 or $0.15 per share, compared to a net loss of $739,000 or $0.39 per share in Q3 2024 [16] Business Line Data and Key Metrics Changes - License fee revenue decreased to $918,000 in Q3 2025 from $1.4 million in Q3 2024, while service revenue increased slightly to $268,000 [14] - Hardware sales declined to approximately $364,000 in Q3 2025 from $436,000 in Q3 2024 due to timing of shipments [15] Market Data and Key Metrics Changes - The company experienced strong demand in the defense sector, with two of the top four largest global defense agencies using its technology [10] - The company is focusing on expanding its market reach in Europe, the Middle East, and Africa, particularly through channel sales efforts [7] Company Strategy and Development Direction - The company is advancing its channel sales efforts and has engaged an external marketing firm to enhance its marketing strategies and website content [7] - A significant update to the PortalGuard identity platform is expected to be released in late Q1 or early Q2 2026, which represents a major modernization of the platform [8] - The company is focusing on reducing its break-even levels and supporting positive cash flow and profitability [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth prospects for the upcoming year, citing a strong pipeline of opportunities and the potential for significant contract renewals [12][39] - The company noted that the recent U.S. government shutdown did not impact its business operations [37] Other Important Information - The company raised approximately $3 million net of fees through a warrant exercise transaction, enhancing its cash liquidity [13] - Current assets as of September 30, 2025, were $3.7 million, including $2 million in cash, compared to $1.9 million in current assets at the end of 2024 [17] Q&A Session Summary Question: Was the Bank of Egypt win a recurring revenue deal? - Management confirmed it was an initial deployment with expectations for expanded deployment [19] Question: Are margins lower on the Bank of Egypt project due to partnership? - Management stated that gross margins on software remain above 90% [20] Question: What is the current ARR? - Management indicated that the ARR is growing and estimated to be in the $6 million-$7 million range [25] Question: What led to the decision to provide formal guidance? - Management cited confidence from a solid pipeline of opportunities and results from investments in the partner network [33] Question: Did the U.S. government shutdown impact business? - Management confirmed there was no impact from the shutdown [37] Question: Are there any major upcoming renewals in 2026? - Management indicated that there are several renewals and expansions on the horizon [40] Question: What is the status of the Channel Alliance program? - Management emphasized the focus on quality partnerships rather than quantity, with significant players in local markets [41][42]

Core Insights - Google has launched its Safety Charter in India to enhance AI-driven fraud detection and combat scams, addressing the rising digital fraud in the country, which is its largest market outside the U.S. [1][2] Group 1: Digital Fraud Landscape - Digital fraud in India is increasing, with fraud related to the UPI payment system growing 85% year-over-year to nearly 11 billion Indian rupees ($127 million) [2] - Instances of digital arrest scams have emerged, where fraudsters impersonate officials to extort money [2][15] Group 2: Google's Initiatives - The Safety Charter aims to tackle online scams, enterprise cybersecurity, and responsible AI development [6] - Google has established a security engineering center (GSec) in India to collaborate with local communities, government, and businesses to address cybersecurity and AI challenges [4][6] - The company has partnered with the Indian Cyber Crime Coordination Centre (I4C) to raise awareness about cybercrimes and launched the DigiKavach program to mitigate the impact of malicious financial applications [5] Group 3: AI and Cybersecurity Efforts - Google is leveraging AI globally to combat online scams, removing millions of ads and accounts, and plans to expand these efforts in India [7] - Google Messages employs AI-powered Scam Detection, protecting users from over 500 million suspicious messages monthly [8] - Google Pay has issued 41 million warnings against potentially fraudulent transactions [8] Group 4: Challenges and Future Directions - The misuse of AI by malicious actors is a significant concern, with AI models being tested to prevent harmful content generation [9][10] - Google is developing frameworks like the Secure AI Framework to prevent the abuse of its AI models [11] - The company is collaborating with the research community to ensure safety in AI communications [12] Group 5: Authentication and Security Measures - Google promotes multi-factor authentication (MFA) to enhance online security, having enabled MFA for all user accounts [17] - In India, the adoption of passwordless authentication is challenging due to diverse demographics, with SMS-based authentication being favored [18]