Project Investment & Performance - San Mateo County invested $12 million in an AI surveillance system by C3 AI [1] - The project has been ongoing for three years, but police officers report a lack of perceived benefits [1]

Project Investment & Outcome - San Mateo County invested $12 million in an AI surveillance system by C3 AI [1] - The project, intended to enhance police work, has not yet yielded perceived benefits after three years, according to police officers [1]

Project Investment & Outcome - San Mateo County invested $12 million in an AI surveillance system by C3 AI [1] - The project aimed to enhance police work [1] - After three years, police officers report a lack of perceived benefits from the system [1]

Financial Data and Key Metrics Changes - Revenue for the quarter reached $18.3 million, reflecting a 109% year-on-year growth [8] - Adjusted EBITDA was $5.16 million, a 48% increase year-on-year [8] - Adjusted net income stood at $4.47 million, marking a 46.7% increase [8] - Total cash reserves, both restricted and unrestricted, closed the quarter at $33.8 million, while debt decreased from over $20 million to $18.4 million [9][10] Business Line Data and Key Metrics Changes - The company is focusing on smart infrastructure, AI security, and national digital systems, with significant progress in these areas [5] - The company has secured national infrastructure contracts and is moving from negotiation to execution phase [6] Market Data and Key Metrics Changes - The company is expanding its operations across the United States, Latin America, Southeast Asia, and East Asia [4] - The backlog for 2025 is projected at $93 million, primarily from existing contracts [44] Company Strategy and Development Direction - The company is focused on converting its pipeline into revenue and is engaged in multiyear contracts, with an average duration of seven to ten years [40] - The company is pursuing strategic acquisitions in Southeast Asia to enhance operational depth and local scale [43] - The company aims for profitable growth while maintaining financial discipline [41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to tackle new projects without needing to raise outside funding [17] - The company anticipates a strong performance in 2026, with a backlog of $70 million already shaping up [14] Other Important Information - The company has a $10 million share buyback program, with $4.6 million remaining capacity [11] - The One Amazon partnership involves a total commitment of $5 million, with ongoing discussions for further investments [12][61] Q&A Session Summary Question: Update on the Royal Thai tourist police contract - Management confirmed that the project has exceeded expectations, with a signed agreement expected to total between $500 million to $550 million over five to six years [25][21] Question: Progress on the $400 million smart education contracts - Management reported being in late-stage negotiations for two education projects, including an additional $80 million for smart cloud infrastructure [28] Question: Steps to sustain growth - Management outlined key steps including converting pipeline into revenue, entering multiyear contracts, and pursuing strategic acquisitions [40][41] Question: Expectations for sequential revenue growth and gross margins - Management indicated that while they do not guide specific quarterly growth, the second half of the year is expected to be stronger than the first half [50] Question: Details on the Amazon contract investment - Management clarified that the investment is part of a SAFE agreement, which guarantees equity in the future [58][61]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 reached $18.3 million, reflecting a 109% year-on-year growth [7] - Adjusted EBITDA was $5.16 million, a 48% increase year-on-year, while adjusted net income was $4.47 million, marking a 46.7% increase [7] - Total cash reserves at the end of the quarter were $33.8 million, with debt reduced from over $20 million to $18.4 million, and further reduced to $17 million post-quarter [8][9] Business Line Data and Key Metrics Changes - The company is focusing on smart infrastructure, AI security, and national digital systems, with significant progress in securing contracts across various sectors [5] - The company has a $5 billion pipeline with real deals being executed across multiple regions, indicating strong operational execution [6][14] Market Data and Key Metrics Changes - The company is expanding its presence in the United States, Latin America, Southeast Asia, and East Asia, transitioning from negotiation to execution of contracts [4][5] - The backlog for 2025 is projected at $93 million, primarily from existing contracts, while the backlog for 2026 is at $70 million [48] Company Strategy and Development Direction - The company is committed to profitable growth, focusing on long-term contracts averaging 7 to 10 years, and is actively pursuing strategic acquisitions in Southeast Asia [44][47] - The company is also engaged in a significant partnership with One Amazon, aimed at environmental monitoring and creating a new financial framework for valuing natural capital [62][64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to convert momentum into lasting infrastructure and long-term impact, emphasizing the importance of operational execution [81] - The company anticipates a strong performance in 2026, with a focus on scaling operations and expanding partnerships [6][14] Other Important Information - The company has authorized a $10 million share buyback program, with $5.4 million spent in the last twelve months [11] - The company is maintaining a strong balance sheet, with a focus on cash flow and reducing debt [16] Q&A Session Summary Question: Update on the Royal Thai tourist police contract - The Royal Thai project has exceeded expectations, with a signed purchase order expected to be between $50 million to $60 million, and a total project size anticipated to be $500 million to $550 million over five to six years [27][24] Question: Progress on the $400 million smart education contracts - The company is in late-stage negotiations for two education projects, including an additional $80 million for smart cloud infrastructure [32] Question: Steps to sustain growth - The company is focusing on converting pipeline into revenue, entering multiyear contracts, exploring new markets, maintaining financial discipline, and pursuing strategic acquisitions [41][44][46] Question: Current state of the pipeline and backlog - The backlog for 2025 is $93 million, primarily from existing clients, while the backlog for 2026 is $70 million, with several new contracts expected to start [48] Question: Expectations for sequential revenue growth and gross margins - The company does not provide quarterly guidance but expects stronger performance in the second half of the year, with gross margins targeted at 40% to 45% for the year [52][53] Question: Details on the Amazon contract investment - The company has invested $5 million in a SAFE agreement with One Amazon, which is focused on environmental monitoring and creating a new financial framework [58][62]