01 Quantum Inc. (ONE) Earnings Call Transcript & Summary

Well, good afternoon, ladies and gentlemen. My name is Brian Stringer, and I'm the Chief Financial Officer for 01 Communique. I'll be acting as the Chair of the meeting today, unless there is an objection from those present. And I'll now welcome you to this Annual and Special Meeting of Shareholders. With me today is Andrew Cheung; Gary Kissack; and Tyson Macaulay, who our proposed directors, along with Bill Train, who is our Chairman, our proposed director. Unfortunately, Bill came down with COVID over the weekend. And he's got a very -- he's got a fairly bad dose of it, nothing overly serious, but serious enough that he certainly can't attend in person and not feeling up to attending on the webinar. And so we wish you well, Bill. And now we'll get on with it. Our Corporate Secretary and Controller is Ms. Gigi Loo and she will be taking the minutes of the meeting. I ask Ms. Loo to act as Secretary of the meeting and Lori Winchester of TMX Equity Transfer Services to act as our scrutineer. Ladies and gentlemen, notice and proxy materials for this meeting were duly mailed to shareholders. Additional copies are available on SEDAR. I have been advised by the scrutineers that prior to the meeting, proxies were received from the holders of more than 23,006,144 common shares or 23.87% of all shares entitled to be voted. As a result, we have a quorum for this meeting, and the meeting is properly constituted for the transaction of business. In view of the need to attend to a number of formal corporate matters, certain shareholders have volunteered to move and second resolutions where required. While this procedure will facilitate the handling of the formal matters, any shareholder or proxy holder may speak on a matter when that matter is before the meeting. There will be a Q&A after the meeting, and we would prefer if you hold your questions until then. When I recognize you, please give your name and state whether you are a shareholder or a proxy holder. The minutes of the last Annual Meeting of Shareholders held on April 27, 2022, are available for inspection from the company by way of e-mail to Gigi Loo at [email protected] that send it to Gigi Loo, her e-mail address, [email protected]. I'm also tabling a copy of the 2022 audited financial statements. You will have received them with the proxy materials, and additional copies are available on SEDAR. After the formal portion of the meeting, there will be a presentation by management, which will then be followed by an opportunity for questions. The first item of business for which this meeting has been called is to fix the number of directors. It is intended to determine the number of directors at 4 and to elect 4 directors for the ensuing year. May I have a motion that the number of directors be fixed at 4.

[indiscernible]

Thank you. Is there a seconder?

[indiscernible]

Thank you. Is there a discussion on the motion? That's good. Based on proxies received in favor of management, if a ballot vote for conducted on this matter, more than 95% of the votes eligible to be cast at this meeting would be voted in favor of setting the number of directors to be elected at 4. Therefore, I declare that the number of directors to be elected is set at 4 in accordance with the motion. We now turn to the election of the directors for the term expiring in 2023 or throughout 2023, expire in 2024. Four directors are to be elected, and 4 nominees are named in the proxy circular for this meeting. The Secretary will now read their names.

The names of the nominees are Andrew Cheung, William Train, Gary Kissack and Tyson Macaulay.

And since we're on Zoom and Gigi is away, I'll read them again. It's Andrew Cheung, William Train, Gary Kissack and Tyson Macaulay. Thank you, Gigi. I would like to note that the company has adopted a policy whereby any nomineed for election as a director for whom the number of votes withheld exceeds the number of votes cast in his or her favor, will have -- will be deemed not to have received the support of shareholders, even if he or she is elected. A director elected in such circumstances must immediately offer his or her resignation to the Chairman of the Board. Within 90 days of receiving the final voting results, the Board will issue a press release announcing the resignation of the director or explaining the reasons justify his decision not to adopt such resignation. This policy only applies in the context of an uncontested election of directors. May I have nominations, please.

[indiscernible]

Does any shareholder or proxy holder wish to make a further nomination? Since there are no further nominations, I declare the nominations closed. 4 persons have been nominated as directors, and there are 4 directors to be elected. Accordingly, I declare that the 4 nominees who names have been read by the Secretary have been elected directors of the company to hold office until the close of the next Annual Meeting of Shareholders or until his or her successor is duly elected or he or she otherwise ceases to hold his office. The next item on the agenda is the appointment of auditors of the company. I will now entertain a motion in this regard.

[indiscernible]

Is there a seconder? A motion has been made and seconded to appoint McGovern Hurley LLP as the company's auditors. Based on proxies received in favor of management, if a ballot vote were conducted on this matter, more than 95% of the most eligible to be cast at this meeting would be voted in favor of the reappointment of the auditors at a remuneration to be fixed by the Board of Directors of the company. Therefore, the motion is carried, and I declare that McGovern Hurley LLP have been reappointed auditors of the company in accordance with the motion. The next item of business for which this meeting has been called is to consider and, if thought appropriate, to approve a resolution ratifying the stock option plan of the company as more particularly described in the management information circular. The full text of the proposed resolution is set out in the management information circular. In order to be approved, the resolution must be approved by at least a majority of the votes cast therein. May I have a motion for approval of this resolution.

[indiscernible]

And a second?

[indiscernible]

Thank you. A motion has been made and seconded to approve the ratification of the company's stock option plan. Based on proxies received in favor of management, if a ballot vote were conducted on this matter, more than 95% of the votes eligible to be cast at this meeting would be voted in favor of the ratification of the company's stock option plan. Therefore, I declare that the company's stock option plan in the form set out in the management information circular, be ratified and passed without variation. I think it is appropriate to terminate the meeting now. May I have a motion to terminate this meeting.

[indiscernible]

Thank you. A motion has been received and seconded to terminate this meeting. The formal portion of the meeting is now concluded. Management will now make a short presentation about the company, after which there will be an opportunity for questions. Thank you all for attending. I'll now turn it over to Andrew Cheung, and bear with us because sometimes there may be some feedback between the different mics because we're side by each. Now as Andrew goes through, we're all familiar with Zoom and the Q&A button at the bottom. If you have any questions, please use the Q&A button at the bottom, and you can send them to me, and I'll pass them over to Andrew. Thank you. And now over to Andrew.

Thank you, Brian. I think, Brian, you need to mute your microphone. Very good, very good. All right. Yes. Thank you. Welcome, everyone. My name is Andrew Cheung, President and CEO of 01 Communique. I just can't imagine that there has been 3 years already since our last face-to-face AGM meeting. And apparently judging from the number of people showing up, I am sure it sends a very loud and clear picture that the world hasn't reached to the pre-COVID stage where the norm is doing zoom and everything, but we still have a few people who showed up today. So today, most people joining are actually on Zoom at this point. So I'm glad that the hybrid meeting works out pretty well. Today, I'm going to give you some update on our latest activities. First of all, I'd like to give some kind of background about quantum threat first. And today, there's no need probably to explain what quantum computers are because they are already commercially available by IBM since 2019. And the threat on cybersecurity is also very well known. So actually, their threat to cybersecurity on the technical point of view, it's very easy to explain. The 150 years that takes to crack the RSA or a [ elliptic ] curve encryption that the world has been relying on in the last [ 15 ] years, will be shrunk by quantum computers. In other words, those RSA and [ eliptic ] curve that the world has been relying on will be standing naked against a quantum computer. So the 150 years that takes to boot force RSA and [ eliptic ] curve will be strong to hours, minutes and eventually milliseconds. So this kind of a problem is huge, all right? Now the point that I'm trying to make here is who would be hurt first, who will be first on the line. Obviously, in my opinion, any kind of like financial-related activities such as banking transactions or cryptocurrency, et cetera, et cetera, will be first on the line, hit hard because this is where money resides. But fundamentally, anything under the sun, related to the Internet, related to cybersecurity will be affected. So are we toasted? Luckily not yet, but it won't be for too long. Now expert says 2,000 qubits is what's required to crack RSA and [ eliptic ] curve within like about 4 hours. All right. We haven't technically reached that point yet, like the quantum computers that IBM has delivered has not yet reached that point. All right. So now let's take a look at what they have today. Now there are many quantum computer vendors already in the world. But let's just take a look at what IBM has publicly announced in their announcement. So IBM, as I said, in 2019 already had delivered the first quantum computer commercial available for a 27 qubit quantum computer. But that was just a quantum toy like what we had in the PC, the 1970s, you still remember those atari's, those [indiscernible] kind of machine, it's actually something like that at that time. And then they delivered 53 qubit in the next year in 2020. The latest development delivery was 433 qubit, only a few months ago in November and they plan to deliver 1,121 qubit this year and then followed by 1,386 qubits next year and then 4,000 qubit in 2025, then 100,000-plus qubit, 2026 onwards. It doesn't take a rocket scientist to figure that. qubit development is indeed a double exponential. It's faster than you can imagine. Now having said that, all these kind of things, I cannot even imagine what would happen in 2026 when there are 100,000 qubits available. Now think about we just said 2,000 qubit is enough to crack RSA and [ eliptic ] curve within 4 hours. Now I will say, well, it's not there yet, but don't forget, if 2,000 qubit can crack RSA and [ eliptic] curve within 4 hours, the problem is already here because like, for example, 1121 qubit can crack RSA or [ eliptic ] curve within days, for example, even months, the problem has already arrived. And that's the problem. And we must also take into consideration that this is just the IBM. There are other signed noises such as the paper announced by Chinese -- Mainland China research about 3 months ago that they claim they are using a quantum computer of 372 qubit to crack RSA [eliptic] of now. We don't know if that's for true or not, but this is just one paper that publicly announced 3 months ago, okay? And 372 qubit was less than the power of what IBM had delivered in November, okay? So don't forget also that IBM only represents one quantum computing vendor, and they have other competitors that are striving to beat IBM and also we have to remember that the national level usually is about 5 to 10 years ahead of the commercial level. So likely what the national agency would have in what we were -- but actually, what we will have in 2026, likely the national agency already had it at least 2 years ago. And this dovetails very nicely with the infamous action that the FBI did in 2021 when they crack the hackers of the [ Colonial ] pipeline and returning 50% of the ransom money. And that, of course, they did it within 2 weeks, but they didn't tell you, they would never tell you why they use to do that. And no wonder why then the agencies around the world, such as NIST, the national security Memorandum and [ BIS ] has already taken a lot of actions. For example, NIST, The National Institute of Standards and Technologies, they actually started the Quantum SAFE study in 2016. The same year as we started the IronCAP division 01. And they surprised the world last year in July, rushing out full recommendation for the world so that the world is not standing naked against the quantum computers, okay? And they said they will announce more by 2024. And also the national, the U.S. MSN10, National Security Memorandum, they are urging the -- actually not even urging, they gave a deadline of October 18 of this year for the Federal agencies to assess the funding need for achieving quantum safety. Now I don't know why, I have no idea why they said October 18, which is a Wednesday. Maybe they know something that are not revealed to the world, but this is public knowledge. And then last but not least, as I said, the BIS, the Bank of International Settlement has also announced last year to asking the central banks and banks around the world to start evaluating what they need to -- in order to achieve quantum safety. So 01, the IronCAP was basically reacted with all these kind of things. And we -- and as I mentioned, we started the same year into 2016 as when NIST started the process. And today, we have already achieved a lot of partner, the achievement, proof-of-concept development and patent portfolio and things like that. So we are very much ahead of our competitor because we were using -- in 2016, we were basically using our in-depth knowledge in quantum safety to try to predict or we can jump the gun to predict what NIST will end up announcing in a few years. So, so far, our predictions were bang on totally correct. So that means our partners, which I will talk about a little bit more, already a few years ago are in lockstep with the NIST process, having what they have announced last July already. And so with the global partnership, as I said, I will go into more details on those more notable ones. We are ready to capture this explosive market. As I said, a lot of marketing activities is going on and a lot of the proof-of-concept, the project has already happened with our global partners. So I'm going to talk about them one by one for those, just the more notable one. First of all, what I want to talk about would be Thales. In North America, we sometimes call Thales, but they actually call Thales, it is a French company. Thales is a world leader in the cybersecurity equipment, okay? And to those who don't know Thales, Thales is actually -- their products are being used by the like of banks, central banks, national defense, military, you name it, around the world, okay? And Thales actually pick IronCAP as a partner to promote this post-quantum cryptography, the business. This integration we did with them basically, was a process of integrating the IronCAP library with the luna HSM. HSM Stand for hardware security module, right? Which would allow their existing customer only needs to purchase the optional IronCAP FM, is called functional module running on the machine in order to achieve quantum safety. So in other words, their customer doesn't need to purchase a new hardware equipment. They just need to purchase an add-on option to run on the existing Luna machine in order to achieve quantum safety. And this product integration was done 3 months ago, and we had made public announcement already and now we had agreed that the initial MSLP is going to be USD 6,000 for this product. And we are -- we have just started the co-marketing activities, which I will talk about just a little later. So this particular product, as I said, Luna or Thales is being used by all security-sensitive companies around the world. So a typical example will be the banks than central banks, okay? And even cybersecurity and cryptocurrency companies will be very much into using this kind of a product. Now you may be surprised how security vulnerable, all cryptocurrency today have. Now I'm not saying blockchain is back. So don't get me wrong. In fact, blockchain structure by itself still safe in the post-quantum world. But the digital signature that validate each and every transaction are using [ eliptic ] curve. That means they are quantum vulnerable, okay? And also likely because that industry is unregulated as we all know. Virtually none of the validator or miners are using a military-grade HSM machine to safeguard their crown jewel, which is the private key. So it's a very dangerous proposition there once we hit in [indiscernible] that people can crack the private key within not even talk about a second, even within days or months. Okay. So that is one of the use case that we will be promoting together with Thales. Who is that good-looking guy in this picture? That was actually a picture taken 3 years ago at the RSA conference in San Francisco. And this is very clearly indicating that for all these kind of nice partnerships, it takes a long time to nurture, right? We met them 3 years ago and took us 3 years to approach them, discuss, sign up agreements and do a technical integration. And now after 3 years, we are the partner and as we speak today, RSA conference is happening as we speak right now. It's actually a conference in San Francisco from yesterday to Friday. And this year, we are part of the Thales promotion there. They are actually hosting a private post-quantum cryptography party called the [ Palooza ] event and we are part of it. And our sales and marketing people are already there, and I will be traveling to San Francisco tonight joining that event. So I couldn't wait. This is a very exciting opportunity and just starting right now as we speak. I just couldn't wait. Another kind of related activities is -- if you remember, I said a little bit earlier that the post-quantum equipment by Thales can be used in the cyber -- in the cryptocurrency industry. So there was another very exciting project that we have undergone in the last few months. It was a consortium of cryptocurrency player in Asia who has contracted IronCAP to conduct a proof of concept project to prove that we can create quantum safe digital currency. And the mandate for us to do was to integrate IronCAP into an existing -- the blockchain rather than creating a new blockchain, like creating new blockchain is easy, right, because it's new but having to add quantum safety into an existing blockchain is a tough task because the change is already there, it's huge right? Especially, we were using Solana. They asked us to use Solana as the sandbox because the line is one of the best latest cryptocurrency out there that they are being viewed as [etherium killer] because they are the first one who did the proof of stick transaction with a high transaction per second TPS. So our mandate was to see how we can integrate with Solana using the existing Solana chain. It was a tough job because Solana, as I said, just like any other cryptocurrency, they embedded and hard coded themselves using [ eliptic ] curve as a digital signature, which the size is different, is smaller than post-quantum size and although even though it is slightly smaller, the structure is going to be different and it's going to be creating incompatibility with the existing huge blockchain that has already been existed. So through this exercise, we actually have invented a very special way to integrate IronCAP into an existing chain without changing their fundamental structure. So ended up, we found that this is, in the patent world, they call novelty, we have novelty. So we went to the patent office and tried to apply for an international patent and lo behold, the U.S. Patent Office agreed with us within a few months, and we just announced a few weeks ago that we got the notice of allowance already from the U.S. Patent Office granting us the patent protection for this special technique that we can add quantum safety into any blockchain -- existing blockchain without hurting their structures. This is very, very exciting for us. So we call this project, the QNT, Quantum Native Token and the public demonstration is available at this URL, qnt-demo.ironcap.ca, and we have to [indiscernible] there. So if anyone can stand, you can actually go to that site and try to create a quantum safe wallet. And if you can give us your wallet address, we can air drop some QNT for you, although there's no public value for QNT as of yet, okay? But our partner in Asia is actually planning for a commercial lending project. So thinking to the max. I keep saying like, I'm not saying that it would happen, but thinking to the max, if this becomes the bitcoin in the post-quantum era, this could become 100 billion value because the deal that we have with our partners is that we're going to cut 10% of all those coins, QNT that they're going to issue to the validator or call the miners, whatever way you want to call them. So this is a very lucrative potential for us. Now part of this QNT project, we also have discovered another technology because we're actually walking into something uncharted territory. We also found another thing. It's about how we can hide important data within some kind of public media called steganography. Now steganography is nothing new, okay? Steganography has been in use since the 18th century, only that they were calling it watermark at that time. And this is 21st century watermark is quantum safe steganography, whereby we are using quantum safe technology to spread out the important data into random position within a picture or a media file or music file, video or whatever, randomly spread them out only with the password that you can retreat them back. And even quantum code cannot figure out where those data is. Now we can imagine the very big use case for this applying to cryptocurrency will be to create and restore the wallet in case you lose your wallet. Today, when you want to save the wallet and retrieve the wallet, they are relying on like a crappy paper with 24 english words which can be lost very easily as 18th century technology that can be lost easily or compromised. But if they can use something like that to store and restore the private key, it will be another big way. So we have also applied for international patent protection for this technology. Now aside from that, we are also having a very good partnership with PriceWaterhouseCoopers in Asia. Through this exercise, we had co-authored 2 papers with PwC. And these papers are publicly available, and you can use the link over there or the QR code to scan and read the paper. The first paper was about how PwC will suggest their customers on achieving their quantum safe journey. And the second paper is about how PwC and IronCAP view the world about ransomware. We see that e-mail is being the 91% cause, the culprit, the mother of culprit of ransomware problem. So we have written the paper to describe about this kind of issue. So PwC and IronCAP has already participated in many exhibitions and seminars in Asia. The latest one was just a few months ago, at something called AFF, Asian Financial Forum happened in January, just a few months ago in Hongkong. And this picture is actually showing how the IronCAP was appearing at the PwC booth at the AFF conference. So we would have more participation in co-marketing activities on the horizon with PwC. Now back to our backyard in Montreal, CGI, which is one of the largest E-System integrator, competitor of IBM is also a partner of IronCAP. They have started the post-quantum cryptography division 2 years ago and picked 01 IronCAP as their partner of the providing technology for them. And currently, we are displaying the IronCAP demonstration at what they call the innovation center in the head office of the Montreal. Again, this is available publicly. If you go to the ironcapca/demo/cgi, you will see the demonstration, which is currently happening at the innovation center in Montreal. So last but not least, it is the IronCAP X product which is something the PwC paper was talking about also is the first end-to-end quantum-safe e-mail encryption product that we are about to -- we publicly released imminently after a delay caused by the reason why we want to integrate this approved algorithm into the product. If you remember, what I presented slightly earlier that this surprised the world by announcing a few recommendation in July last year, ahead of the schedule for 2 years. And this doesn't surprise us because we also saw the urgency of quantum safety. However, it did delay the release of IronCAP X because we decided that we wanted to include the NIST-approved algorithm into IronCAP X. Not only that this is giving us a lot of marketing noise but also is paving the road because it's NIST-approved. It's paving the road for a lot of the international approvals, such as the [ indiscernible ] approval, those kind of a process. And this product is geared for $100 per year per user. We continue to offer the free personal version available, and it will be publicly released within probably the next 1 or 2 weeks. So watch out for that. I want to say a video worth a thousand words, so I have a 50-second video that describe about IronCAP X. So here it goes. [Presentation]

So this is IronCAP X. So before -- I'd like to take a pause, but before I do that to allow more questions and answers, I'd like to make a summary, okay. So basically, no matter how you see the quantum threat or the development of quantum computers. Like it or not, [Q-day] has arrived just quietly and even in the most optimistic point of view, the hackers are already now as we speak, collecting your data and waiting until they have get hold of the quantum computer powerful enough to do that to crack. The industry has called that harvest now and decrypt later, the problem. And this is already happening, right? So there's really no time to wait, and we have to act. At this point, really urgent problem at this point. So here, I'd like to conclude the presentation and basically, a summary message is with IronCAP and our global partners, we are very ready to capture the market and embrace this massive multibillion dollar market, together with our global partners. So please stay tuned. And again, as I said, I will be heading to San Francisco for the RSA conference with Thales tonight. And hopefully, we will have more good news on the way. Thank you very much, and I think we can turn to the questions and answer.

And I just actually repeat the questions because [indiscernible] Okay. The first one I have, it has to do with technology. Do you think the AI sector will need to be quantum safe. And how will AI affect quantum computer and 01 Communique?

Yes. The question is about how AI could be affected by the quantum safety and things like that. I think this is a very good question because how can you not talk about AI, recently. But just like any industry, I always draw in parallel about AI and post-quantum or whatever, like the mega trend. If you remember, AI has been in discussion for years, okay, just like post-quantum technology. And they're not generating revenue yet. But suddenly, in the last few weeks or maybe a month or something, it suddenly becomes the top of the industry, the top of the world, same thing is going to happen in the post-quantum, cyber security. And how can like AI be not quantum safe. I think this is a question about privacy because if you have ever tried -- now put on your hand, if anyone here has tried ChatGPT. So if you have tried ChatGPT, you would probably see that. You can ask just about any question. And sometimes your question may be sensitive, your question maybe -- what will happen if I do this stupid thing or whatever, but they are not protected. Your question was known by the chat box about what you have asked, right? So they say, "Oh, Mr. So and so has been asking this kind of question." So it has to be extremely safe in terms of privacy. So in my opinion, I believe AI has to be encrypted in a post-quantum fashion. So that everyone asking question to AI is private. That no one can decrypt not even -- in fact, it should be something like even the AI machine doesn't know what you have asked, although they can give you the answer, okay? They should not know what you have asked because it is encrypted. So AI, in summary, we believe AI must be quantum safe, okay? There's no question asked about it. It's a very dangerous proposition if they are not. That's basically my short answer to that question.

And we have a question here on that [indiscernible] stuff. That was one of the ones at beginning, you mentioned $6,000 product. I think $6,000. Is that -- what's the split of that? Is that 50% without [indiscernible]? Or is that [indiscernible].

Yes. Basically, that's all us. Yes, the $6,000 is an add-on, it's a post-quantum add-on that the customer can purchase through [indiscernible].

And Andrew, here's the last question I got is more [indiscernible]. Is you talked about 3 great partnerships with Thales, Solana and CGI. When do you feel that you will generate revenue from IronCAP?

As much as I don't like to answer this question. I'm sure this would be a question come up. The question is about when revenue will be generated for post-quantum industry. I think I kind of alluded to that in answering that first question about AI. For any kind of mega trend, unfortunately, they all go through the same kind of a path, okay? That it has to be -- if you still remember, in the '90s, people were asking, how can you make money on the Internet, everything is free, okay? So everyone talk about this is a joke. This is like no one can make money [indiscernilbe]. We know how and people how much they make on the Internet. And the same thing is about AI. And same thing is about quantum safety. And at this point, at this particular moment, I would say that the post-quantum industry is still in the pre-money, is still in the pre-money mode, but it's coming to that perfect point very, very close to that. So our strategy as in day 1 has been to set up partnership with these global partners, they also understand that this is a pre-money situation, right? So set up this kind of a partnership with them so that they are ready for their customers when Q-day is here or when they try to protect themselves against Q-day, wether it is a proof-of-concept project or it is a transitional project, we would be a -- the technology provider and share the revenue with our partners. So a short answer to that is, whenever that Q-day preparation is, that is when the revenue will be coming just like any kind of the big trend industry in play.

And are here's a follow on [ Dan's ] question, is the $6,000 MSLP a onetime or recurring subscription fee.

It is both. It is a onetime fee, and it is also -- but it's not a recurring subscription, but it's a recurring with maintenance fee, okay? And we are in discussion at this point about whether we should offer also a subscription fees that people paying less, for example, $200 a month or something like that instead of a onetime $6,000. And -- but at this point, the first try going out would be $6,000 for the optional [indiscernible] that runs on the Thales Luna HSM machine.

It seems to be it's [indiscernible].

Yes. We believe $6,000 is a very good price, too. Given the fact that the LUNA HSM machine itself costs about $50,000 a piece. It's a very expensive heavy-duty cybersecurity machine. It's a onetime charge. For this initial pricing model.

This one comes in and is a financial related. Can you discuss your burn rate looking forward.

Yes. I think we have talked about during our Q2 conference. We're actually in Q1 conference. The burn rate, usually for a mega trend technology is extremely high at the beginning because it's very heavy R&D, right? That was like 6 years ago when we started IronCAP and then it's gradually reducing as we are closer to the competition of the R&D. So the burn rate has been reduced year-over-year. And we believe entering around this quarter, the burn rate will be down to like less than $1 million in a year. And so we are very much in control. And yes, that's basically where the R&D has completed because -- and everything that's for look -- moving forward from here, we will be actually charging customers for customization and POC fees. Just like we have started that already last year. We have some projects that we are -- we were charging our customers on proof-of-concept projects.

Okay. That wraps up the questions, Andrew unless there's any more that come in, give me a few seconds. What is the big part in San Francisco [indiscernible].

Actually is tomorrow.

Okay. Well, Andrew, that's it for questions. I'll turn it back to you.

Okay. Yes. Thank you very much. Once again, I'd like to thank you very much for attending both virtually and in person, even though people still doesn't like to visit in person anymore, but we will still like to try a hybrid version. And I'm glad the hybrid protocol and the hybrid technical is working quite well. So yes, thank you, again, and hopefully, see you next year with something very nice to announce.