
Financial Data and Key Metrics Changes - Operating expenses for Q3 2023 were $3.4 million, with R&D expenses decreasing by $0.5 million compared to Q3 2022, primarily due to a reduction in salaries and benefits [5] - SG&A expenses increased by $0.7 million to $2.9 million, mainly due to a rise in professional fees related to significant transactional levels [5] - The pre-tax loss for Q3 2023 was $2.9 million, which is $0.3 million lower than the same quarter in 2022 [43] - Net cash used in operations was $2.8 million, $0.7 million higher than the same quarter in 2022, driven by increased professional fees [6] - Other income was $0.6 million, compared to zero in the prior year's quarter, consisting of a $3 million change in the fair value of warrants and derivative liabilities [24] - Shareholder equity increased by $4.7 million in Q3 to $9.3 million, comfortably above the $2.5 million NASDAQ compliance threshold [25] Business Line Data and Key Metrics Changes - The company has established a yard, office, and shop facilities in Arizona to enhance operational efficiency [20] - Three directional drills are ready for production, with a total output of approximately 2,200 feet per day, and two micro-trenchers capable of producing 4,400 feet per day [39] Market Data and Key Metrics Changes - The company is focusing on the Arizona market for fiber optic networks, with significant work expected from customers like Google Fiber and Verizon [32][33] - The telecommunications infrastructure market is anticipated to grow over the next five to eight years, prompting the company to coordinate equipment procurement and staffing [21] Company Strategy and Development Direction - The company plans to add two to three Master Service Agreements (MSAs) before the end of the calendar year, indicating a strategy to expand its customer base [12] - Future projects include micro-trenching and directional drilling, with expectations of long-term contracts lasting five to seven years [18][36] - The company aims to build a strong culture and team environment, focusing on employee retention and development [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the employment market in Arizona, indicating a strong ability to recruit necessary talent for upcoming projects [4] - The company is preparing for Q4 projects and expects significant operational progress as it builds out its organization and equipment [43] - Management is optimistic about future growth opportunities and plans to explore projects outside Arizona as they arise [32] Other Important Information - The company received a minimum price notification from NASDAQ, with 180 days to regain compliance by trading above a dollar for ten consecutive days [50] - The company has established direct relationships with equipment manufacturers to ensure a steady supply as contracts increase [21] Q&A Session Summary Question: What is the current status of the company's projects? - The company has broken ground on its first project and has established five crews to manage operations effectively [48] Question: How is the company addressing NASDAQ compliance? - The company is confident in its strategic progress and is preparing alternate options to retain its NASDAQ listing if necessary [50]