Look up in the sky. It's a bird. It's a plane. It's a drone.Hi, my name is Arjun and today I want to talk about something that most people don't know about. UAVs. I have been researching UAVs for the past year or so, going around the entire state of Texas to agricultural public speaking competitions such as the State Fair of Texas and the Houston Livestock and Show Rodeo, one of the biggest youth public speaking competitions in the nation. Throughout all these experiences, I have gained tons of knowledge on ...

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $3.4 million, a decrease from $7.1 million in Q3 2024, primarily due to a decline in the live production business sector and delayed execution of large-scale projects [12] - For the full year, revenue was $27.7 million, slightly up from $27.5 million in 2023 [12] - Gross profit for Q4 2024 was $300,000, with a gross profit margin of 8.8%, down from $3.6 million and a 51% margin in Q3 2024 [13] - Full year gross profit was $13.8 million, compared to $14.1 million in the prior year, with a gross profit margin of 49.7% in 2024 [13] - Total expenses in Q4 2024 were $17.4 million, up from $10.3 million in Q3 2024, and full year expenses were $49.2 million compared to $38.1 million in 2023 [14] - Operating loss for Q4 2024 was $14.1 million, compared to a $3.3 million loss in Q3 2024, and full year operating loss was $21.5 million, up from a $10.6 million loss in 2023 [14] - Net loss attributable to common shareholders in Q4 2024 was $14.3 million or $5.82 per share, compared to a loss of $3 million or $1.22 per share in Q3 2024 [15] - Full year net loss was $20.5 million or $8.35 per share, compared to a loss of $9.1 million or $3.83 per share in the prior year [15] - Cash and short-term investments as of 12/31/2024 were $6.5 million, down from $9.2 million at 09/30/2024 [16] Business Line Data and Key Metrics Changes - The live production market experienced softness, impacting revenue and project execution [6] - The Mill Gov market showed lower than expected revenue but had over 70% growth in bookings, particularly in airborne video downlink systems [18] - Recurring revenue through new service level agreements reached over $900,000, indicating a shift towards a service-centric organization [20] Market Data and Key Metrics Changes - The company is seeing strong demand in the live production market, evidenced by its role in major global events [20] - The adoption of new technologies in drone applications is creating significant opportunities, particularly in the Mill Gov sector [19][22] Company Strategy and Development Direction - The company aims to solidify its leadership in live production while expanding its Mill Gov business and accelerating recurring revenues to achieve positive cash flow in 2025 [18] - Cost control measures are expected to yield approximately $10 million in yearly savings, helping to lower the breakeven point and reduce operational complexity [10] - The company is focusing on technological innovations and has introduced several new products to meet evolving customer needs [21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that 2024 did not develop as planned, with a strong first half followed by a slowdown [6] - The company is confident in its unique capabilities around video, RF, and IP technologies, and anticipates better revenue potential in upcoming quarters [11] - Management expressed optimism about achieving cash flow positivity by the end of 2025 [11] Other Important Information - The company has delisted from the NASDAQ exchange, which is expected to save upwards of $2 million in costs associated with being publicly listed [8][9] - The restructuring activities have significantly impacted Q4 EBITDA, but are seen as necessary for future growth [10] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $3.4 million, down from $7.1 million in Q3 2024, primarily due to a decline in the live production sector and delayed project execution [11] - Full year revenue for 2024 was $27.7 million, slightly up from $27.5 million in 2023 [11] - Gross profit for Q4 2024 was $300,000, with a gross profit margin of 8.8%, compared to $3.6 million and a 51% margin in Q3 2024 [12] - Full year gross profit was $13.8 million, down from $14.1 million in 2023, with a gross profit margin of 49.7% compared to 51% in the prior year [12] - Total expenses in Q4 2024 were $17.4 million, up from $10.3 million in Q3 2024, and full year expenses were $49.2 million compared to $38.1 million in 2023 [13] - Operating loss for Q4 2024 was $14.1 million, compared to a $3.3 million loss in Q3 2024, and full year operating loss was $21.5 million compared to $10.6 million in 2023 [13] - Net loss attributable to common shareholders in Q4 2024 was $14.3 million or $5.82 per share, compared to a loss of $3 million or $1.22 per share in Q3 2024 [14] - Full year net loss was $20.5 million or $8.35 per share, compared to a loss of $9.1 million or $3.83 per share in the prior year [14] - EBITDA for 2024 was a loss of $19.8 million, compared to a loss of $9 million in 2023 [14] Business Line Data and Key Metrics Changes - The Mill Gov business saw over 70% growth in bookings, highlighted by multimillion-dollar orders for airborne video downlink systems [16] - Recurring revenue through new service level agreements reached over $900,000, validating the strategy for predictable high-margin income streams [17] Market Data and Key Metrics Changes - The company experienced healthy demand in the live production market, serving major global events such as the Super Bowl and the Summer Olympics [18] - The company was awarded the best innovation project at the Broadcast Tech Innovation Awards 2024 for its technology contribution to an autonomous racing project [19] Company Strategy and Development Direction - The company aims to solidify its leadership in live production while expanding its Mill Gov business and accelerating recurring revenues through services, targeting positive cash flow in 2025 [16] - The transformation into a service-centric organization is underway, with a focus on building a global service platform [17] - The company is deepening strategic alliances with OEM partners to ensure technological evolution aligns with market needs [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that 2024 did not develop as planned, with a strong first half followed by a slowdown, particularly in the live production market [6] - The company is confident in its unique capabilities around video, RF, and IP technologies, expecting better revenue potential in upcoming quarters [10] - Management expressed optimism about achieving cash flow positivity by the end of 2025 [10] Other Important Information - The company took proactive actions to reduce expenses, including product line rationalization and facility consolidation, expected to yield approximately $10 million in yearly savings [9] - The company voluntarily delisted from NASDAQ to save costs associated with being publicly listed, allowing a focus on business management rather than regulatory requirements [8] Q&A Session Summary Question: What were the main challenges faced in Q4? - Management noted revenue timing challenges, softness in the live production market, and output delays due to facility consolidation as key issues [6] Question: How does the company plan to achieve its financial goals? - The company plans to solidify its leadership in live production, expand the Mill Gov business, and accelerate recurring revenues through services [16] Question: What is the outlook for the Mill Gov business? - The Mill Gov business is experiencing strong momentum with over 70% growth in bookings, particularly in drone applications [16]