Clear Blue Technologies International Inc. (0YA0.F) Earnings Call Transcript & Summary

Good morning, everyone and welcome to the Clear Blue Technologies Fiscal 2023 Financial Results Conference Call. My name is Ryan Freemantle. I work with Sophic Capital, and we help Clear Blue with their Investor Relations. On the call today, we have CEO, Miriam Tuerk; and CFO, Farrukh Anwar. They will provide an overview of the financial results and then provide a business update, followed by a question-and-answer period. [Operator Instructions] I will now pass the call over to Miriam to begin the fiscal 2023 financial results. Miriam, the floor is yours.

Thank you, Ryan. Good morning, all. Good afternoon for some of you in Europe. As always, please take everything we say under the guidance of forward-looking statements. We do our best, but we cannot forecast everything that happens in the world. So please take that under consideration as we give you our presentation this morning. So just going to spend a few minutes on an overview of Clear Blue. Our product portfolio has changed quite a bit, which is expanding our addressable market. So we'll talk about that a little bit. Then we'll go through our 2023 results, which for those of you who know me, I'm a fairly blunt person. I'm actually quite proud and thrilled with the results that we have delivered given where we came from and the downturn that we had in 2022, 2023 is a great launch platform to make 2024 fantastic. And I think you can see that in our results. So once Farrukh has gone over that, I will then talk a little bit about what we see going forward and give you my best ability to give you guidance on what we see as a company. So I've shown this chart a couple of times, and I went back and took a look at it, and I really feel like we're actually at that inflection point. Now you can only know that when hindsight is 20/20. But when the world in the telecom marketplace went from everything was wired to hybrid wired and wireless, there was an explosion of telecommunications. And I was listening to CNBC this morning, they were talking about the explosion that is expected in electrification, and I believe that we are starting to see those leading indicators in the market as well. Once we see that, we see that the potential is that there will be significant growth in that wireless power may, in fact, significantly overshoot wired connected to the grid power. And of course, we are the leading provider in North America certainly, and I think we have leading tenants globally, as a wireless power service provider. So why do I say that the trends in power are accelerating? I think that given what's happened over the last few years, people are -- customers and infrastructure strategic planners are starting to say, this isn't a one-off, this isn't an edge case, this is more normal. And so for example, power lines are causing forest fires. We know that, that happened in Canada and in the U.S. We've seen it in Maui, we've seen it in California, I believe, in Alberta and British Columbia. But you're starting to get people talking about it as something that is a much more aggregate. So for instance, Texas is talking about the fact that they believe 4,000 forest fires were caused in the last 3 years by power lines. And so what you do is you see, instead of just the edge people, you're seeing the core infrastructure such as power utilities taking note. Having conversations with power utilities where they say, listen, I've got this long power line, it's only operating a few remote telecom sites or it's only operating street lights along the highway at an off-ramp intersection, and they see looking at off-grid now as a way to reduce their operating costs and to reduce the risk of forest fire liabilities and all that comes with that. And so to see a grid wired power infrastructure player like a power utility or a Ministry of Transportation start to look at off-grid as a viable option is kind of a new inflection point in the marketplace that we've really started to see in the last 6 months. On the solar street lighting side, we're now at a point where it's reached what I would call grid parity. So one of the benefits of monitoring and managing systems is that we can show and demonstrate the types of uptime that we can deliver. And for those of you who live in Southern Ontario, you know that it's a very dark, overcast, no sunshine periods of the year. We've been able to show 1 GTA large municipality that, for a 6-year install that we have had with them over the last 6 years, we were delivered -- we were able to deliver 99.997% uptime, which certainly is on par with grid uptime. And then the second piece of that is you've got cheaper and more reliable LEDs. You have more reliable solar and hybrid solar solutions. And with the advent of lithium batteries, which is being driven by the electric vehicle, all of a sudden the cost to replace an existing grid light with a hybrid solar grid light or the cost to put in a new solar light instead of a highway, street or a pedestrian lighting, grid-powered light has reached grid parity. So it's now cheaper or equal to. And we're seeing significant increase in adoption around that. And then I think lastly, in a more global way -- so those 2 are specific to North American conversations. In a global way, AI and, of course, the earlier foundations of that, data, predictive analytics, and how it can deliver a lower operating cost and higher clean energy operations is a key market driver. So we're seeing a lot of our large telecom customers really focused on offsetting their ever-increasing operating costs and CapEx costs through innovation and through innovation with data, which is where we're focused. And then on the other side, the financial institution industry is pushing really hard to invest in clean tech and to look for ESG metrics. And as a result of that, you're seeing that the money is what leads everyone to move more aggressively in this direction, and we're seeing a lot of greening of infrastructure, which is a great opportunity for Clear Blue and, obviously, good for all of us on the planet. Last year, one of the biggest tech trends was virtual power plants, wireless off-grid. And we continue to believe that, that is a big tech trend, and it is the key focus of Clear Blue and what we have been all about since the company's foundation. So for those of you who are new, just to kind of summarize what is it that we do. Well, the first thing is we manufacture leading-edge power electronics. We make rectifiers and chargers and controllers and inverters, and all of that, that kind of power management, power supply control technology. The reason we make the technology is that, in order to have smart systems, you actually have to embed edge computing into your power devices and you have to change the power electronics controls. You can't just go and get an old-fashioned dumb power electronics device and make it all of a sudden smart by communicating to the cloud. You need functionality and features inside of it. So we make that smart power electronics. We then connect it to our Illumient Smart Power Cloud service and through the management capabilities and the troubleshooting capabilities and the forecasting capabilities of that technology, we're able to deliver unparalleled energy uptime and performance management. So number one, we can make the solar energy or the reduction of dependence on diesel much better than any of our competitors because we've got the data and the predictive analytics and the IP in order to do that forecasting. Along beside that, the cost of maintenance, operation, troubleshooting and outages that result from that is a big headache for anybody who's operating power systems. And so the ability to do that remotely, to remote troubleshoot it, to actually remediate it, take action, do maintenance on the batteries, is also technology that we've built. In order to talk about delivering the value to the ongoing operation of the business, we believe that not only do we have to be able to develop good software or develop good hardware, we've actually got to get out there in the field with our customers and understand what it takes to do that. And so every system we sell, we actually manage and operate it from our NOC center. And today, that's more than 14,000 systems in 55 countries. So what is our core product line? Well, at the center of every product that we have is our Illumient Cloud Core technology. That is the software, the hardware, the cloud data, the connectivity, so that every device anywhere in the world can send data to the cloud either every 10 seconds or every 5 minutes. And through that, provide us with the data, the analytics and the remote control management. We have 2 key verticals that we're focused on. One is telecom, which is really large systems. It can be 500 watts or 1,000 watts or 25 kilowatts of energy that's required. And for that, we have 2 products: our Nano-Grid and our eSite product. eSite was an acquisition we closed in early last year as part of last year's financial results. And we did deliver a fair amount of revenue for eSite in year last year, and we expect to get more this year. So we're very excited about that. On the other side, the smaller infrastructure, so smart city, solar lighting, Internet of Things, satellite and WiFi is a very key market. Just because it's really small, it doesn't mean it's any less mission-critical than the bigger systems. And through our Illumient's Core Cloud Technology, whether it's really itty-bitty small like our Pico-Grid or really, really large, like our 36-kilowatt or 32-kilowatt eSite Micro System, we are able to manage it with the same smart tools. So in telecom, our product line is the eSite Micro, which is the larger systems and is really good support for hybrid and generator; our Nano-Grid, which is our core technology that we've had for a few years, which is really the leader in its class when it comes to solar-only and solar grid applications that are more rural or satellite type applications, 20 to 3 kilowatts worth of power. And then as we start to get down into satellite direct to the customer, bypassing the cell phone network for community Internet, our Pico-Grid product, which is also perfect for IoT, such as security cameras, sensors, agricultural, farm watering stations for bulls and cows, as an example, are the types of projects I hear about from our salespeople nowadays. On the Illumient side, we have matured our product quite a bit. Three years ago, all we had was the STRADA Series, and this is our -- one of our nice projects, which was done in downtown Toronto. So it's not just rural. It's right down in the city core, where the cost of infrastructure underneath all that concrete is way too cost-prohibitive. And we were able to do a Bloor West Village with our STRADA Series, requiring lead acid batteries. And with the advancements of technology and our own R&D development, we've now been able to launch our CAMMI Series, which allows us to go with lithium batteries, 1/3 the size and significantly lower in cost, making your opportunities much more flexible. This is a picture of Interstate 80 in Nevada, one of the off-ramps that is newly constructed where we are providing all of the lighting. So in the middle of nowhere, you drive 20 miles, 40 kilometers, you come to an off-ramp, and instead of seeing 5 or 10 or 50 power poles connected to power utility lines that go for miles and miles, now you have completely stand-alone, independent off-grid solar lights where they're not going to cause a fire. And SENTI, which is our new all-in-one street light, has some innovative patents technically around the physical layout. But again, your ability to get into a single integrated device has only been launched by us now. It's been around in the market by others for many years. But without the smart management and without the reliability, we have advanced our technology to the point where it's reliable, and we can deliver the kinds of uptime that I just talked to you about. And with our technology design, we believe we've got a better product in the marketplace than anyone else. So hopefully, you've seen this before, but very thrilled and proud of the marquee list of customers that we have and the presence that we have. Most of our products and markets are in Africa and in North America. Our intention is to expand into the South America, Latin America marketplace and Southeast Asia as we grow over the next few years. So I talk a lot about our software, but I haven't really shown it to you, and I thought maybe just a few quick slides might be interesting. Our IP and our core intelligence relates to how smart our technology is and what you're able to do with it. These are some example live production screens of some existing customers that we have. The next few slides are actually videos. I'm going to go through them very quickly, just to give you an idea of what the customers can see and the richness of the data that our NOC operators and our customer operators are able to use. So we launched the hub last year, and you can get an overview of what's generated, how the battery is doing, how things are consumed. You can see the profile through the day, you can vary it quite a bit, and really look at spikes and things that have occurred and why did they occur. We have a new tool called the Power Flow Management. This is hugely valuable because you can really look at not a point in time here's the data. You can look at what happened over a period of time. And that's critically important because, when something derails in a power system, it's kind of like you're driving off the side of the highway, and now you're on the shoulder, you're going into the ditch, there's a lot of opportunity to resteer that to a system back online to be able to perform directly and this Power Flow Management provides significant capability of it. You've heard me talk a lot about scalability, and I just thought I would show you our new dashboard where you have the ability now to look at it from a macro perspective. So I want to look at all of my operations in Nigeria, and I want to see how things are doing and which ones have problems and where is there an issue. And the ability to look at that much data, understand that there's more than a trillion data elements below the system underneath the covers is a key aspect of what we launched last year, which is allowing our customers to manage things at scale. So those are just some examples of how we're on the road to AI. Before you ever get to artificial intelligence, you've got to get the data, you've got to learn how to manage -- how do I manage such large volumes of data? How do I describe what's happening in a way that's usable and consumable? Can I analyze why it happened and automate that? Can I then turn that into prediction? "Hey, I'm seeing a decline in the power profile that is a slow decline over a period of time." So it's not because it was dark today or rained yesterday, but it's more of a different kind of trend. That means that my systems in Cameroon are getting dusty and I need to deal with it. Or I don't need to deal with it because it's going to rain next week, and even though there's degradation, it's not actually impacting my performance. That's what predictive analytics is all about, and we're able to do that today. And then you go to the next step, which is AI, where it starts to think on its own, to do the work on your behalf as you scale from, as I said, we're at 14,000 or 15,000 devices so far, to 100,000 devices and 200,000 devices. And as you take your core technology of Nano-Grid and Illumient, our street lighting, and you move upstream to this larger power, which is much more complicated, much more sophisticated powering, and you move downstream to tens and tens of thousands of small little devices that need to be managed in the same way as a critical power infrastructure, that is what the tools are needing that are needing to build. Again, telecom is a great example. Back in the old days when we had land lines, when you picked up the phone, even when the power was off, the phone was on because all of the electronics were at the central office. You had a big central office, you had a couple of technicians working in that central office, and everybody on all their telephone lines was getting something off of that central switch. Today we have a little piece of that central switch in our house, and it's called a router. And somehow, our telcos have figured out a way how to support all those router installations, remote-manage them, remote-troubleshoot them by building the tools to be able to do that. That's what's needed when you go to a wired -- a wireless power infrastructure, and that's what Clear Blue is focused on building. Clear Blue. Our key focus this year that we're working on with some of our bigger strategic customers is getting on the Road to Zero Diesel. In a very big part of the world, most of the telecom infrastructure cannot rely on the grid 24/7. And therefore, they have to supplement with diesel generators, which is just a really ugly, ugly, costly, let alone -- forget about climate change, ugly operational infrastructure, and moving away from that. And the interesting thing is that Eastern Canada has never had to worry about diesel generators because they always had the grid. And then after a few hurricanes hit over the last few years, you'll have heard Bell Canada announced that they've implemented diesel generators at all of their sites. Why? Because when the grid goes offline, you still, through storms and other climate change, you still need power. So even the most developed infrastructures are starting to have to get to hybrid power solutions. And Clear Blue is working on developing the AI analytic performance capability, data, predictive data, and analytics, and then going to AI on how you can get rid of diesel. We've already proven that with 40% lower upfront costs on a system. If you buy a Clear Blue solar system, you need 40% less solar panels and batteries than the competitors. And we believe that, that will also translate to our hybrid customers with diesel where we're going to deliver 20% to 50% reduction in customer diesel consumption. That's our target. Maintenance windows are reduced uptime. And then at the end of the day, my job is to deliver 5% to 10% extra profit margin to the customer's bottom line. Okay. Thank you for letting me talk a little bit about Clear Blue. Now we're going to get into the 2023 results. I am going to turn it over to Farrukh. Just say next slide when you want me to hit the slide button.

Sure. Thank you so much, Miriam. So we can see that we're returning to strong revenues. If you look at the bar chart on the right side, you can see Q3 and Q4, pretty solid bars. So revenue for Q4 2023 was $2.1 million, which yielded a trailing 4 quarter result of $5.4 million. We can see a steady increase in revenue throughout the year. The first 2 quarters of the current trailing 4 quarter was impacted by the economic downturn triggered by the macroeconomic events of early 2022 as companies around the world paused their capital spending. We now see that the customer spending is gradually returning. In the latter part of 2023, the company saw a return to strong bookings, and some of those orders began to ship in Q3, resulting in a record third quarter. And the company has seen this trend continue in the fourth quarter as well. The company foresees trailing 4-quarter revenues will continue to grow going forward. Next slide, please, Miriam. So if you look at our revenue, based on our sector and regional results, the Q4 quarterly revenue shows that Clear Blue is now back to revenue growth mode. And we -- as we move forward, trailing 4 quarter's revenue has begun to grow again and continue to do so going on forward. Our lighting vertical has grown significantly, mainly due to the fact that solar lighting is now at great parity for cost. Also increased awareness of the cost and hazards from power lines, and focus on climate change initiatives in the North American market has increased production. Therefore, we now see an increase in revenues by vertical, both by vertical and also by region. Our telecom vertical has been returning to pre-pandemic levels since the customers have resumed their capital expenditure that they had paused in 2022. Customers are now resuming their deferred rollouts, and we're working with these customers to accommodate them for the revised rollout schedule. When we speak about bookings in the later part of the presentation, you will see that the orders have now started to increase, which is also reflected in our revenue for the fiscal 2023. Next slide, please, Miriam. So if you look at our revenue by product, as you know, Clear Blue completed the acquisition of eSite Power Systems in Q1 of 2023. We now have launched next generation of that product by integrating eSite's unparalleled industry-leading power electronics with Clear Blue Smart Power Management Cloud Software and our services and business model. This can be seen by approximately $1.8 million in eSite macro sales in 2023. We can also see increase in Illumient solar lights due to increased awareness and solar grid parity in Canada and the U.S. The decrease in Nano-Grid is attributable to the timing of the customer deployments that I spoke about. Nano-Grid customers had delayed their rollouts due to funding delays, and we work closely with these customers. As we work closely with them, we see that -- seeing that their funding is now resuming. We've seen that, and rollouts are going to follow. So while normal sales cycles are typically 18 months, as you can see, Esite-Micro is now already contributing strong results in 2023. For 2024, eSite will be a large component of the company's revenue and we are quite bullish about its potential in 2024 and beyond. Next slide, please, Miriam. So now if we talk about Illumient's and EES recurring revenue, recurring revenue is the revenue that the company earns from its Energy-as-a-Service Illumient's ongoing management services and cloud software. Every single system Clear Blue has ever sold includes an ongoing service component. Clear Blue manages and operates the power systems on an ongoing basis for our customers. This is the heart of our business and value proposition. As telecom customers increase wireless telecommunication bandwidth to support an ever-growing customer base, so to do -- so do we increase the power needs of those sites, and our product helps in that. The ongoing growth of telecommunications -- telecom systems and ongoing operations and maintenance of power needed to keep these systems functioning is what drives the growth in our recurring revenue. As you see, additions of our telecom customer rollouts over the years is having a nice impact upon the growth of our recurring revenue. Recurring revenue includes all revenue from existing installed systems that are undergoing ongoing management by Clear Blue. Clear Blue will sometimes undertake to expand the capacity of these sites as telecom traffic continues to grow and these onetime transactions are also included in the company's recurring revenue. Beginning in Q3 2023, the company saw the return of strong bookings, which including onetime revenue. As a result, Q4 recurring revenue was almost $200,772, a 20% increase from the same period last year. For the trailing 4-quarter period, recurring revenue increased by 26% to $1,032,056 compared to 2022. In general, recurring revenue is expected to increase every quarter as Clear Blue sells more units with the subscription model. And as company's base for telecom installations grows, telecom systems tend to grow their capacity and power consumption, which also increases the recurring revenue for Clear Blue. Next slide, please, Miriam. Miriam, do you want to speak about bookings?

Yes. So bookings consists of 2 components in our bookings. It is assured revenue on a go-forward basis, and it consists of 2 components. It consists of the prebooked -- the presold multiyear ongoing maintenance and management contracts that we have. And as of the end of December, we had $760,000 worth of that. And then it has upcoming orders where we've got a purchase order, but we've not yet done the shipping of that purchase order. And so that at the end of this -- of December was $1.7 million. In that $1.7 million, we would include the Illumient's deferred revenue portion. So when we take that $1.7 million of revenue, some of it will show up in year 1 and some of it will show up in follow-on years, which is why we show you the breakdown. So as an example, January 1 of this year, we had $1.8 million of revenue in hand for the year. As of December 31, 2023 -- sorry for the typo there, should have changed it from September, Clear Blue's bookings had increased 24% year-over-year and we anticipate that we're going to continue to deliver those services this year for $1.8 million, and then $700,000 beyond that. Back over to you, Farrukh.

All right. Thank you so much, Miriam. So if you look at the graph on the right, we can see that the company has been able to grow its margin over the years, and now it's maintaining margins at around 40% range. With high inflation and increasing commodity prices, there has been pressure on the company's margins. However, in most cases, the company has managed to either innovate lower costs elsewhere or pass a portion of these increased costs of materials to its customers, which has made it possible to -- just because of our value proposition and our software and service. Trailing 4 quarter's gross margin for this year has increased to 46% when compared to the comparative period. Given the acquisition of eSite in 2023 and other cost pressures on the company, we do not expect to maintain these higher 40% margins. I think we should expect margins to drop a little bit to be in the mid-30s range, which is pretty reasonable based on our trend and based on what's going on in the market. Next slide, please, Miriam. So in this environment of higher inflation and resulting higher cost, Clear Blue's management is focused on reducing operating expenses where possible. In Q4 2024 (sic) [ 2023 ] the operating expenses did increase by 31% compared to the same period in 2022, but the increase is mainly attributed to higher share-based compensation expense, which is a noncash based item, compared to comparative quarter of $120,377. Professional fees a little bit higher by $77,246. And research and development expenses, which is our bread and butter, were higher a little bit by $250,000 when compared to the comparative quarter of 2022. For the trailing 4 quarters, however, of December 31, 2023, overall, the operating expenses decreased by $258,133. This decrease was mainly attributable to lower salaries and benefits of $118,643 and business development expenses of around $93,155. Okay. Miriam, next slide, please. Okay. If we talk about EBITDA and adjusted EBITDA. So our EBITDA increase -- improved by 68% to a negative [ $401,330 ], compared to a negative $1.2 million in the comparative quarter of 2022. For the trailing 4 quarter, EBITDA increased or improved by 49% compared to the comparative period. Improvement is mainly due to higher revenues and higher margins. The company excludes -- so when we talk about our adjusted EBITDA, so the company excludes its government R&D as part of its adjusted EBITDA calculation. As the company has commitments for these grants for at least the next 3 years, and it's fundamental part of our -- of our financial plan to assist in R&D development, it has been included in this calculation. Adjusted EBITDA loss decreased by 70% for the quarter and 48% for the trailing fourth quarter. The delta of -- in non-IFRS adjusted EBITDA within Q3 2023 -- between Q4 2023 and Q4 2022 can be attributed to the funding received from government towards these operating expenses. As Clear Blue's revenue is expected to grow nicely over the remaining -- in the future, we expect our non-IFRS EBITDA to improve as well. Next slide, please, Miriam? Do you want to talk about the overall?

Sure. Thank you very much, Farrukh. So upon reflection, when I stand back and I look at the year, I'm very pleased. We doubled our revenue. Our gross margin was very high. And I would like to comment that it is because of the IP we have built into the revenue. Most of our onetime sales is hardware sales, but there's so much software and functionality and value-add in that software that we're able to make good margins. Even though we're quite a small volume manufacturer, as we grow our volume, that -- those numbers should continue to improve. The reason why we're giving a bit of guidance lower for this year is because of the product mix. When you have a product that's more mature, like Nano-Grid, you can get higher margins. When you have a product that's still a little bit early stage like Pico-SENTI and eSite, your margins are going to be lower. So we're always on a continuous cost reduction and improvement phase. We need some time to do that with our newer products. We cut our EBITDA loss in half, and quite pleased with that. And I think that as we target our growth this year, we should hopefully see that number swing positive. I'm not giving that as guidance. I'm just saying that's our target. Have to see how the results do. But we are furiously, furiously managing cost expenses and rightsizing the organization on an ongoing basis as we need to, resisting pressures to grow our staff where we need to and sometimes I wish we could do that a little bit faster. But just waiting for the business to grow and validate itself as we grow. I had a couple of people tell me that hitting the $1 million mark for recurring revenue is a milestone. I know a few years ago everybody was saying, Miriam, you're talking about recurring revenue and you're never going to get there. It's not growing very much. And as we all knew back then, it does have a multiplier effect and as your installed base grows. So we're very thrilled to see the growth to hit over $1 million. Next job is to get it so high that it alone carries the OpEx of the company. I think we're a few years out, but maybe not too many, to get there. But in summary, I really feel that these are strong fundamentals. At the size of company we are, to be able to generate a gross margin and get our EBITDA down so low, given the level of R&D, the number of products, the software, the hardware, the testing, the service, very proud of the team we have in place. And I guess, lastly, I would just like to say that we are also getting strong support from the government. Energy, technologies, clean tech is a key focus of this country. AI is a clean focus -- is a large focus of this country. And the company is at the intersection of those 2 things. So we still have more than $2 million of remaining funding from STC grants and FedDev 10-year interest-free loans over the -- as of the end of last -- of December 31. And ongoing fundraising in the marketplace to avail ourselves of more opportunities there is something that I continue to work with to build positive relationships with the key organizations and leadership. I do want to make one shout out. Many of you will be aware of SDTC and the delays in the grants as they try to move forward with the proper governance needed. The staff in that organization, in the ministry and right up to Minister Champagne's office, were very professional and supportive of the company as we were waiting for those funds. They were material for us in Q1 and really appreciated their support. Okay. Let's talk a little bit about outlook and then open it up into questions. From my perspective, 2023 gives us a strong platform for growth. We've shown that the trajectory has changed. We've now delivered. Q2 was up, Q3 was up, Q4 was up. Q1 is up. And it's diversified across 4 products, portfolios and across various marketplaces. And that is the best thing we could do as we're growing the company. We're not a 1 market 1 product at wonder. Our ability to bring the sophistication and management we have to the diverse portfolio right from the very large 30-kilowatt eSite diesel grid solar hybrid systems, right down to little itty-bitty boxes that are the size of a small computer, and having all the sophisticated functionality, is a key value in our IP. I would make one other comment. One of the big things we did in 2023 is we took an acquisition of a fantastic hardware technology with a lot of edge smarts in that hardware power technology. eSite has got unparalleled performance reliability in the market on the hardware side. We married that and integrated that to our Smart Cloud Platform. As a go-forward view, I'm not planning on doing any acquisitions in 2024 unless something comes along, but beyond that, the opportunity to roll up other acquisitions into the company and do the technology integration, and one strategic investor say, acquisitions are really hard, can you really do it? And yes, they are very, very hard, but we've demonstrated that we can do it with a very key technology. We are seeing industry adoption of innovative technologies that benefit climate change, reduce cost, and we're seeing that accelerating and it's hitting the mainstream. And lastly, from a guidance perspective, we continue to see strong growth from our 2023 results. You will see our Q1 results very soon. They should be out, hopefully, within the next 5 to 7 business days. We will let you know when they come. We will not have an earnings call again because it will be so close to this earnings call, but happy to take any inbound interest if that's the case. But what I can tell you is that our top line results for Q1, again, doubling our growth from last year, and I think even higher than that, maybe even 200% growth. But I'd have to go and double check the math. But very strong growth from last year. So all of that, I'd like to open it up to questions. Ryan, do we have any questions?

Thank you, Miriam. As you said, we'll now begin the question-and-answer portion of the call. [Operator Instructions] So we have a couple of questions here that are kind of asking a similar thing. So how does the company plan to navigate the balance sheet challenge in 2024?

That's a great question. I call that the cash question. So I want to say a couple of things on that matter, and I told Farrukh I would take this answer but I'll open it up to him after I finish. We are now out of the tunnel. As a company, we'd say we were in the tunnel, we can see the light at the end of the tunnel. We're out of the tunnel. We have good visibility to cash flow coming in. As an example, I am expecting over $2.5 million of inbound cash in the next 2 months. I'm confident that $1.5 million of that is a few weeks. It could be tomorrow, it could be in a week or two, very conservatively. Where we sit as a company, as I said, is we're out of the tunnel. We're not -- we're in the bright sunshine now from a growth perspective, but the credit cards are maxed. So the company has implemented significant focus to manage our cash flow. We've been working hard to get government grants and other support. And we have been working with our suppliers and working with our customers to match inbounds with outbounds. So we still have some challenges ahead while we pay down those credit cards. We expect to get additional government support in the short term. And we're working on a number of different avenues for that, for continued support there. But given where we came from, we're pretty much through the backlog of the surprise inflection point that we hit in 2022, where we went from very strong growth building inventory to a complete crash in the market of customer rollouts, with customers even pulling purchase orders, which, of course, are not cancelable, but if you have a strategic customer that calls you and says that they want to dial down the volumes, you have to respond to that. I think the other thing that we've seen in working very closely with our customers, we've been working beside our customers helping them in their fundraising. And we have visibility near term to 3 of -- sorry, 1, 2, 3, 4 -- 4 of our long-term large customers have imminent sales closing, imminent cash funding closing. And given that we're at the table with the investor and we see what's happening there, we're feeling comfortable with the forecast. So it's still tight and we're working on it very tightly. But I'm confident given where we've been, if we weren't going to make it, we wouldn't have already had an issue with it. Our balance sheet is improving. We are paying down our debt. We are paying interest on a monthly basis, reducing our expenses on that side on the balance sheet. So I do see that it's going to improve. Farrukh, do you want to add to that? Please feel free to give your thoughts on that.

Yes, I just wanted to add a couple of things. So when Miriam is saying credit cards are maxed, it's not like credit cards are maxed, it's basically that we have to pay our suppliers. So we are working with our suppliers closely to manage expectation and timing. And we're matching, as Miriam said, inflows and outflows. One, the thing about our balance sheet right now is that we've got inventory. So one main outflow that we had was paying for the inventory that we bought from -- for -- strategically from eSite. So we've got our strategic -- our supply -- one of our suppliers manufacturing goods for us. So we've got those finished goods with us. And then as our sales -- as we sell goods in -- which we've done in Q1 and going on forward, that inventory is going to go down. So it's going to be a cash positive effect when we sell those items. So I think that is something to note.

Okay. This next question has a few parts to it. Do we have any kind of visibility or presence, even if minimal, with the World Bank of Reconstruction and Development? Similarly, the Asian Development Bank? If not, why not? And cannot an entity like the EDC assist? Also, can we not get preapproved technology status with either of these organizations?

So when you look at investment funding of things, there's kind of a tiered structure of NGOs and organizations. So the World Bank is doing a lot of funding for education. We have a partnership with Avanti where we're working on that. And we've been pre -- we've done some pilot projects. So we've been preapproved as an acceptable technology for that. EIB, Finnfund are 2 other funds that are very prevalent in this marketplace, as is the Asian Development Bank and the Africa Development Bank. What tends to happen is those organizations are working with our customers to fund their projects, and the funding trickles through. It's not us that would get that funding. But as I said earlier, we are working with our customers. So for example, in Nigeria, we have been getting ourselves specced in to some of the different agencies where we needed to get listed. We are working with -- directly with financing organizations. We're receiving new leads and opportunities from financing organizations that were involved with previous projects that we've been working on. So yes, we are doing that. The higher up that curve. So if you go -- as you will all know, it's easy to go get a credit card at 60% interest rate. It's not necessarily easy to get the financing you want at good rates. But similarly, when you look at the stack of things, as you go higher and higher into the World Bank and U.N., it is harder and harder and longer and longer to get those funds closed. I know of a number of customers who had preapprovals, what we all thought were solid deals with organizations like EIB, and the practicality is it might take 5 to 10 years for those deals to close. So with some caution, we put our foot in the fire for some of those organizations, but those are really, really long term. On the Avanti partnership that we have for education, where there are $6 billion a year of funding available that can't even deploy the capital, and we're now, I think, more than 2 years in from the beginning of that where we were already preapproved, and we're hopeful that some of those projects will result this year. But the more those are global entities, the harder it is to get funding there. It takes longer.

Okay. It doesn't look like we have any more questions. So if we haven't answered your question or you think of something else after the call has ended, please do not hesitate to send follow-up questions via e-mail either to [email protected] or [email protected]. So this is going to conclude the question-and-answer session of today's call. And I would now like to pass it back to Miriam for closing remarks.

Okay. Well, thank you very much, everyone. As I -- I would like to thank the team, the stakeholders, the shareholders, the investors, the suppliers for their support and what we were able to achieve in 2023. And we look forward to returning significant benefit to all of you with our results in 2024. We'll be back to you in the market very, very soon with Q1 results and then onward to Q2 and the rest of the year. Thanks very much.