FLYHT Aerospace Solutions Ltd. (FLY) Earnings Call Transcript & Summary

My name is Doug Marlin, and I second the motion.

Motion is now open for discussion. You've heard the motion, and if there's no further discussion, I ask for all sharesholders present to indicate their vote using the on-screen poll.

Just give me 1 second, Bill. Okay. I think you can move on, the poll is open. [Voting]

Okay. Based on -- I think you went ahead me on that, [ Deb ].

Am I?

That's okay. Just leave it up. That's an excellent. Based on the preliminary scrutineers' report and the votes conducted at this meeting, I declare the motion carried. Next item for business to be conducted today is to consider and if thought advisable, to pass an ordinary resolution to adopt and approve the stock option plan for FLYHT. The ordinary resolution approve the stock option plan can be found on Page 16 of the information circular. With the consent of the meeting, I would propose to dispense with reading of the resolution in its entirety and proceed by approving by way of ordinary resolution of the shareholders, the stock option plan, all as provided in the information circular. I will now ask for someone to move and someone to second the ordinary resolution.

My name is Doug Marlin, and I move the stock option plan as described in the information circular be approved as the stock option plan of the corporation.

Kent, could you say again, please?

My name is Kent Jacobs, and I second the motion.

Thank you. You've heard the motion. And if there's no further discussion, I ask for all shareholders present to indicate their vote on screen. Based on the preliminary scrutineers' report and the votes conducted at this meeting, I declare the motion carried. Okay. The next item of business to conduct today is to consider and if thought advisable, to pass an ordinary resolution to repeal the bylaws of the corporation adopted -- the new bylaws of the corporation, the ordinary resolution to adopt and improve new bylaws can be found on Page 17 of the information circular. I think it's important to point out, we had a lot of votes on this and people were confused. The only change to the bylaws is allowing our company to have virtual meetings like this instead of in-person meetings. And so this is so people know why we're changing the bylaws. That was the only change in the bylaws was allowing for virtual meetings. With the consent of the meeting, I propose to dispense with the reading of the resolution in its entirety and proceed by approving by way of ordinary resolution of the shareholders, the new bylaws, all is provided for the information circular. I will now ask for someone to move and someone to second such ordinary resolution. Doug, do you want to take that one? Doug, can you move that one?

Sure. My name is Doug Marlin, and I move the new bylaws as described in the information circular to be approved as the bylaws of the corporation.

My name is Derek Graham, and I second the motion.

You've heard the motion, and if there's no further discussion, I will ask the shareholders present to indicate their vote by using the on-poll screen. Based on the preliminary scrutineers' report and the votes conducted at this meeting, I declare the motion carried. If there is no further formal business to be brought before the meeting, I would now ask for someone to move and someone to second the termination of the meeting.

My name is Alana Forbes, and I move that the formal part of the meeting be terminated.

I second the motion.

Okay. That was Doug Marlin. You've heard the motion, and if there's no further discussion, I will ask for all shareholders present to indicate their vote by using the on-screen poll. Okay. I declare the meeting terminated. What we're going to do now is move on to a brief presentation I had put together on some of the things we're doing in the company and what we're doing. Barry Eccleston will talk about his new role as Executive Chairman of the company. And then I've got some written questions that I will answer. And then we'll open it to the floor for any questions anybody wants to ask. So I'd like to start out by thanking everybody for being flexible and working through the issues we have with the COVID pandemic, particularly banks go to our staff to find ways around all the problems that it's created. We've been blessed in the fact that we have had no cases in our company. We have people in China and Indonesia and the United States, in Iceland and Canada around the world, and we've been very fortunate that everybody stayed safe. We have a very comprehensive program in place that the team here put together to manage the situation. We started -- people have started coming back into the office this week on a voluntary basis, it's up to them. If they feel safe to come in, the office is open, and we've done everything we're supposed to do from a safety perspective to keep people safer. I don't know how long it's going to take before we get down any semblance of normal, but the staff have been extremely good in following the procedures, being safe and still getting all their work done. So I'm very appreciative of what they've done and how it's been working for us, and can't wait to see the end of it. So with that, I'll bring up the presentation that I wanted to walk through and show you the -- I'll get my full-screen up here. Anyway, I guess we'll work with that. I don't know how to get rid of these other ones. So again, thank you for coming to the meeting. I've talked about the COVID situation. It's been a disastrous effect on our customers and the number of flights they are flying, where they are going and so on. We're seeing a fairly rapid increase in the number of flights in China and Southeast Asia. They seem to be coming back fairly rapidly. We don't expect the same thing to happen in North America and other parts of the world. I think one of the advantages that the Chinese airlines have is that they don't have to fly with a full passenger load. They can fly with 1/3 of the passengers, which is what they're doing to keep their people safe. So it's been a huge shift for the company to deal with the situation, both internally and externally, with our customers. But I think we've done a good job of minimizing the risk and keeping things moving. As everybody knows, we were geared up this year for a year of growth, lots of plans in place that would help us get new and better products to our customers and new hardware and all kinds of growth. Obviously, that's been set back as everybody knows that looking at the aviation industry, aircraft orders are down flights are down, passenger traffic is down. The only good news is interest rates are down and fuel prices are down, too bad that people can't take advantage of that. But we did raise money in November. It was one of those things that the timing was very fortunate that it was done in November and those cash reserves are serving us well. We've been working really hard at reducing any cash expenses, being able to survive and thrive during this time and to keep our staff basically intact to deliver value to our customers and help them come out of this better off than they were going in from a technology point of view and a capabilities point of view. And I'm going to talk about some of those changes in the next slide One thing we did do is, we were in the process of developing our next-generation AFIRS unit. We set aside a fair amount of money to do that. We've slowed that down. We're going to complete the detailed design phase of that product in the next month or so. And then what we're going to do is not spend money on consultants and testing and certification. Right now, we've slid it out 6 months. We've had excellent support from the government and the understanding that we need to conserve cash, but we maintain our ability to get government programs and be able to take advantage of the wind programs, even though we're sliding the project because it doesn't make sense to be spending money on this when we don't believe the demand will be there because the number of aircraft being deployed are not as many as were planned originally. So that's one of the steps we've taken. The other thing is that the government has had programs both in the U.S. and Canada to support wages for people. We've been successful in both programs in the U.S. and Canada and continue to be. So that government support is really helping reduce the cash burn through this pandemic. So what have we changed? Everybody knows that we've had a change in CEO role. That decision was made by the Board because we believed we had to alter the business direction. We needed to accelerate the business development and had to improve our operations and technology footprint so that we could provide more value to our customers faster. There's a bunch of programs that we have in place today that are relatively new to the company. We've become a business partner of IBM, so that is in place. We're working with IBM globally to provide actionable intelligence to their customers and our customers using IBM technology, which we believe will speed up our ability to deliver it. One of the IBM tools is a tool called Watson. It's an artificial intelligence system. I don't really like that term artificial intelligence because it's really a machine learning tool, what the machine goes through and learns what you did last time and recommends next time you might want to do the same thing or if it didn't work, maybe don't do that again. So what we want to do is make Watson work both on the cloud and in the cloud. You'll see a lot of stuff coming out over the next few months of the work we're doing with IBM to make that a reality. And we're working with some key customers, as launch customers to be able to drive value through actionable intelligence through those tools. Our AFIRS sales are there to provide SaaS services. And we're going to enhance the AFIRS unit over time. I think what we're going to do is kind of turn our model upside down, and we're going to have SaaS revenues that drive AFIRS units being used. So one of the things that we see is that if we can provide value to the customers that don't have AFIRS today through the use of technology, and you can double or triple the benefit to the customer by having AFIRS on board and having real-time data to feed those artificial intelligence engines or actionable technology engines then we have an advantage over everybody else out there and being able to upgrade our customers to a device that will drive value immediately to them to the bottom line. So what we're doing is, we're selling more functions and features to our existing customers. They all know that they have to change how they are doing business to recover from this, and we want to be a key part of that. What we're doing is signing up these key customers to a technology partnership agreement where rather than be a report supplier to them, we become a partner to them to take advantage of the technology that they can use and help them keep up-to-date with technology through this partnership. We believe we have a unique advantage because we don't supply anything but this to our customers. We're not trying to sell them engines or airframes or avionics or spare parts. We're there to help them do what they need to do and get this system up and running. So our focus is on what the customers need and how to have them get the input into our products and services that will give the best value to them. Through the use of technology and through the use of our partnership. There was an interesting survey came out in May of this year that Anna Arrow did. They surveyed all of the major airlines, airports, airframers and so on. They found out that only 2/3 of the community expected to invest in digital transformation to increase their productivity. That included the development and deployment of automation and artificial intelligence technology. Sustainability and environmental issues were really big. And as most of you know, Mary McMillan, one of our Board members, is on the CORSIA committee on environmental impacts of airlines. And we'll be available to our people here to make sure we're ahead of the pack on what we're doing from the environment. They expect to increase their investment in innovation, and FLYHT is an innovative company, and we're going to make sure that we're even more innovative coming forward than we were before. So the customer experience is really important to them, and they're going to spend money on the customer experience. One of the worst thing from a customer's perspective is delays, either departure or arrival delays. You're sitting on the tarmac after a long flight and it takes 15 minutes to get to the gate, and that drives the customer satisfaction worse than anything else in the business. So we can help with those things, turnaround times are a key differentiator and cost saver for our airlines. And because we have real-time data available to help with that, we can do things that other companies cannot do. So the things that they're going to stop spending money on is terminals and construction and airframes. So we know that we've probably got 2 to 3 years for the recovery to take effect. And in that time, we're going to increase our revenue through deployment of our technologies that we've had in-house for a long time. So we've done up a new graphic that talks about our view. Our view is no longer just of the aircraft. We still have the satellite communication to the aircraft. We also have Wi-Fi connectivity to the aircraft, so we can get data on the ground, we can get data to crews. But what we plan to do is roll out through our technology partnership actionable intelligence using the IBM tool. So we'll be able to send the message to the guy on the fuel truck or to the baggage handler or to the gate agent and say, "You've got a delay. What's going on? You need to do something about it." So regardless of where the aircraft is in the process of getting the passengers to where they want to go, we'll be able to help the airlines communicate with the people at the right time, at the right place to reduce costs. So why now? The aviation industry needs to reinvent itself, and we want to be part of that reinvention. We're retraining our staff in using new technologies, like the Agile scrum methodology for system development, which means you can rapidly deploy solutions to the customer. We're consolidating platforms so that we've got a strong base to build from. We already have a lot of the tools in place. They just haven't been activated with actionable intelligence. The AFIRS NG system gives us multiple communication modes. So it allows us to be more responsive to the customers' needs and the cost to the customer. We're developing our actionable intelligence solutions around what the customers need and when they need it and where they need it. So as something comes up as a new problem, we'll be there to address it. We'll have people on-site in their organizations to provide the expertise to help them through our understanding of operational efficiencies, maintenance, our data scientists, along with IBM, will be able to make sure that we're using the latest technologies. And we can get the regulatory approvals through our engineering group to do what nobody else can do in this industry. We do have one of our strategic technology partners in China working on this with us. They are -- they have got multiple aircraft types. They fly all over China. They've got government support for some of these initiatives we're doing. And we're working with 2 customers in North America that will give us some unique fleet capabilities that should serve the majority of the market with the solutions that we bring out. So how are we going to grow the business in the post-COVID era? Our clients' recovery will be done with our new products, and we'll help them come out of this with better information and better tools to be successful. Our customers want to invest in technology, as you saw from that survey, and we're going to be there with solutions that help them get to where they want to go. We're doing that through strategic partnerships. We're not going out selling them something. We're saying work with us to deliver these things and pay us on a per-flight basis. So -- and we're not asking for a big capital investment. We're saying we can start with this doing software. We can add AFIRS where it makes sense, we can add functions where it makes sense, and we can help you with moving. We're looking at business combinations that make sense. So there's other companies out there that have been badly affected by the pandemic that have high-value applications that our customers can use and vice versa. We're looking at ways to work with them through various types of relationships, and we have an extremely strong Board of Directors. One of the things that we just elected a Board of Directors that I think is second to none in the industry for a company our size, for access to the companies and organizations in this business that can help us help them come out of the COVID thing. I'd like to say a special thanks to Mark Rosenker. Mark is not on our Board this year. Mark was with us for 4 years before this. Mark has suffered some health issues and is unable to serve, but was a very good Board member, a real pleasure to do business with, and I want to say a special thanks to Mark for the time and energy that he put into our organization and wish him the best. So that concludes the presentation. What I'd like to do is answer some of the written-in questions. Oh, sorry, I didn't want to do that. I want Barry to go next. And then what I'll do is answer some of the written-in questions and then open it to the floor. So Barry, could I turn it over to you?

Certainly. Thank you, Bill. Let me add my welcome to the FLYHT 2020 AGM. I was asked by Bill back in 2014 to join the Board of FLYHT as an independent Director, and I happily accepted that role for 2 simple reasons. First, I believed in the technology that FLYHT brings to the marketplace. And second, I wanted to help promote the safety and operational advantages of that technology for the benefit of the airline operators and the flying public. And today, 6 years later, I believe in those things even more strongly, and apparently, so do many of the big OEMs who are now running hard, in fact, to catch up where FLYHT has already been for many years in this business. However, where I think FLYHT has not succeeded in these years is breaking into the marketplace in a way that provides critical mass, either to FLYHT or to our customers. Nor did we anticipate how the market needs were quickly changing from just data gathering to meaningful data analysis and now beyond that to actionable intelligence, as Bill just described. So during the past year, at the request of the Board, FLYHT has gained a much better understanding of the future needs of the key airline customers and how we can satisfy those needs. And how we can compete against large OEM and aftermarket players. At the conclusion of this work, the Board agreed a new strategy, driven by new management, specifically focusing on strengthening our software expertise to complement our 20 years experience and 80 plus customers using our AFIRS hardware. And we call this strategy, as you just heard, actionable intelligence. It satisfies what is a clearly emerging need from the airlines going forward to improve their operational efficiency and cost based on real-time accurate data analysis and presentation. The strategy is being led by Bill Tempany, and I have readily agreed to help Bill as Executive Chairman of the Board. And my role in this activity is threefold: number one, to help develop the strategy and make sure we're meeting the customers' needs; number two, promote the strategy with key airline customers and industry partners; and number three, facilitate strategic relationships to speed this growth. I passionately believe, just as I did 6 years ago, that the airline and the aviation industry deserves the technology that FLYHT is offering. I equally believe that FLYHT is better positioned than anyone else in this business to meet those customer needs with this technology and experience. Now having said all that, of course, we must recognize these are extraordinarily trying times for everyone in our business. The entire industry has been decimated by the circumstances of COVID-19. But I want to assure you that Bill and his management team supported by the Board are on the right track and are taking the right actions to see FLYHT through these challenging times. And specifically, we're addressing on a daily basis several key areas of focus: number one, ensuring we have the best leaders who know our business, know our market and who inspire the FLYHT team members; number two, stay close to our customers and work with them. To ensure both their business and our business stays viable through the crisis. Number three, we have to model realistic assumptions about the top line impact to our business and quickly act to address that impact; and number four, we need a detailed cash forecast to manage our business on a daily basis; number five, we will adjust the cost base to recognize our realistic revenue expectations and our cash situation; number six, we will monitor and maintain the viability of our supply chain; number seven, as you have heard, we have sought government help where available, both through our business and to help our employees; lastly, number eight, we maintain our core competencies, so we're ready to react quickly when our customers reemerge from this crisis. All these things are being managed by Bill and the team. I'm pleased to report that given the very tough market conditions, the Board believes FLYHT is well positioned today to manage through the critical next few months and emerge ready to successfully build on our newly launched strategy. I believe that Bill and the FLYHT team are absolutely on the right track. So thank you all for your continued support of flight, as we manage through this difficult year and as we launch into our new actionable intelligence initiative. We look forward to reporting on the success of this in the coming months. And now I hand you back to our CEO, Bill Tempany.

Thanks, Barry. I had to unmute, and I couldn't find it. Okay. So now what I'll do is, I've got about 8 or 10-questions that were sent in by various shareholders that I'd like to answer, and then we'll open the floor, and Barry and I will answer whatever anybody else wants. There were several people questioned about Tom and why the change in CEO. The Board of Directors of FLYHT had concerns and decided that changes of leadership were required. Additional information has since been brought to the Board's attention confirming if change was necessary. The Board is considering this matter further, and we'll provide additional information as soon as possible. So that's all I'm able to say about that situation, but we are dealing with the situation. The next question was, on May 29, Bob McWhirter on Market Call had talked about a Boeing-FedEx opportunity. I wasn't aware of that statement, but I did listen to a link that was sent to me about it. And I think probably that it was a comment from a couple of years ago about the situation when Boeing and FedEx used our products on the ecoDemonstrator. And the result of that was actually press released about a white paper that was done by Boeing to say that the -- there was a commercially available system available today to meet the requirements for automatic data streaming. There's nothing that we have in press release that I'm aware of that can be discussed about that. But we continue to work with the whole industry, including on the IATA boards about using our system. The system that they are looking for is called the Timely Recovery of Flight Data. It's a global standards effort expected to be released this year. Commercialization activities are ongoing to use FLYHT's IP as part of the requirements as well as the real transmission of voice conversations in the cockpit. The results of the trial were in a white paper coauthored by Boeing. The state of our system met the requirements being outlined in the new regulation, and we are, therefore, a commercially available system to meet the requirements. So the next question that came in was, where are we with the next-generation offering? And when can we expect it? As I mentioned in my little presentation. We are a long way down the design road on the next-generation box. We are going to finish that because it's one of those activities, once started you want to get to the end of job on it. So we will be putting that system back in play. And once we know how long COVID is lasting and what the effect is going to be, it's something we can put on the shelf and save the cash until we can see the demand starting to pick up. Somebody asked a question about Inmarsat and their Black Box in the Cloud. The answer that I got when I asked that question was that the lawyers at Inmarsat were studying this and deciding whether or not it was in their best interest to get involved in the black box issue -- the -- it's a safety risk, and lawyers and big companies are looking at it. I don't know if it will ever come out of legal. We're in the process of getting a press release done with IBM, and they call it the 'blue glue' that those things go into and you never know when it might come back out, and I'm sure the same thing is happening in the Inmarsat. So the next question I had was about the PWS assets and whether we believe that says that where we stand with the PWS assets. So my answer to that would be, we believe that COVID has skewed the marketplace in a very unusual manner. So we're reviewing all areas of the business to assess how and when the recovery will begin. There are projections for a V-shaped recovery for aviation and all the way out to 5 or 6 years before we return to 2019 levels. So since the particular PWS business is dependent upon the number of aircraft providing data, it's too early to predict what might happen there. So -- and the last question I got was about funding. And yes, we are receiving funds from both the U.S. and Canadian government and continue to qualify for those programs. The other question that was brought up was our sales force. We did a press release in January, I believe, when we promoted Derek Taylor to the VP of Sales and Marketing. Derek has been with the company about 18 years, started just after I did. And Derek has -- we've increased the team to 6 or 7 people we've got a U.S. person that's responsible for South America and Europe. We've got a full-time person in China. We've got a sales support person and Derek and an admin person here in Calgary. And the Board of Directors are all salespeople, and we're all going to be out there selling our wares and making sure that the industry knows, we are here for the long term. So those are the questions that were mailed in. I'll now open the floor and see if there's any other questions we could answer. Nobody has questions. We did a really good job, answered them all, Barry?

No. If you look in the Q&A box, there's a couple of questions there.

Okay. We'll do that. Okay. Okay. The first question, I don't know if you can see my screen or not. Can you address the issue on -- that many of our Airbus boxes are not using SaaS and what can be done to get them on board? The box that was developed for L3 for the Airbus contract has all of the features built into the box to do data. However, the implementation by Airbus does not hook up to the data buses. It's something that would mean a matter of wiring and changing some software. But that for the best of my knowledge, is not in Airbus' plans. Okay. The next question is looking for Tom's replacement. I am interim, and I've told people that it might be 3 months, it might be 3 years. We've got to find the right person. I do plan to retire again, but we don't have a replacement in place today. The WestJet installations have been slowed down. They do expect to start installations late this year. They certainly need to have it done, I think, over the next 18 months because the current satellite system that they use is going to be shut down. And I think it's 18 months from now, so we expect that the WestJet installations will happen, albeit delayed. I've already answered David's question about when the new CEO. I'm not -- we don't have anybody picked today, but we are actively looking. Okay. Those are the 4 questions I had in the chat box. All right. So I think I've answered all the questions I've got in the Q&A. Well I've got 1 more question here. Could you please explain the difference in sales approach from the old method to new method? For years, what we tried to do is sell AFIRS units with services attached to it. What we're going to do now is we're going to sell services that can be of more value to the customer if they have AFIRS installed. So a good example of that would be in our fuel system, we track the usage of the auxiliary power unit or APU. If the aircraft is powered on, AFIRS transmits and tells you what's going on with the APU. If the aircraft has no power to it, there's no transmission. But what we can do is, we can track the APU usage from the data off the aircraft after the fact and tell people that the APU burden for 6 hours yesterday, and they were at an airport that you're paying for ground power and running the APU. So you should change the procedure, so you don't do that anymore. If we have the AFIRS unit on board, we can say, "Okay, the APU is running at a place where you shouldn't be running it," and we can send a message to the gate or the ramp personnel that they should plug-in the aircraft, turn off the APU and save a bunch of money. So it's kind of an upside down sales approach where we're going to sell the services and then enhance those services with the AFIRS unit. I had a question about the types of partnerships we'll be looking at. We're certainly looking at providers of services and data to our airline customers that can add value to those customers through the use of real-time data. We're also working with several partners on specialty applications, maintenance engine, performance calculations that we can provide data to that's unique to what AFIRS can collect. So we're looking for partners in the aviation business that we can join with to expand our footprint and expand our capabilities and increase our capability by joining staff together. I have more in the Q&A box. The white paper by Boeing, you should be able to find on our website in the media section. There's a section in there that the Boeing white paper is published in, and you can also get it from the press release that was done 2.5 years ago. Another question is where is FLYHT with AirAsia installations? Well like everybody in the industry, AirAsia isn't spending anything on installations today. AirAsia's fleet is recovering. I think they are up to about 70% of where they were pre-COVID in number of flights. And we're in discussions with them about where the -- when they are going to be back to installing. It's definitely up in the air. I mean, every airline is saving pennies to get through this. So certainly, nothing we can say for sure there when it might happen. Okay, there is a question on offering -- we've offered services in the past what new functionality are you bringing? There's a lot of new functionality because we're including airport operations as well as aircraft data to make sure that we are providing real-time information on the aircraft, things like when the cargo door was closed, when the fuel door was used, that they don't normally get integrated with their ground systems to make sure that they are more efficient in turnarounds and what they are doing. How long have we been working with IBM is a question. I was -- one of my former companies was one of the first IBM business partners in North America in 1983. I started working with IBM to get our business partnership set up in January of this year. We put in a formal application in early May, and we were -- our final paperwork and approval came through last week. So we've got people who have been working on getting trained and how to use the tools as we were going through this. The IBM business partnership was official in the last week or 10 days. The IBM partnership increase in revenue. As I said, 1983, I became a business partner, and we worked with IBM on sales and marketing campaigns. IBM is present in pretty well every industry, including aviation, and we are working -- our marketing and sales team is working with their marketing and sales teams on how to approach various airlines with the solutions we're looking at, and that's how we're going to increase revenue. Let's see. What do you think the company is going to take? Okay, there's a question. What do you think it's going to take for the industry and large players to treat FLYHT as and make it the industry leader and not a smaller start-up company? I'm extremely happy and proud with our Board of Directors that we have. We've got access to people. We've never had access to before. WestJet is sort of our launch customer in the -- they're probably not a major airline but they're certainly a major for us. And we now have the attention of many in the industry. And when we do a good job for WestJet, the word will spread very quickly. The other technology partnerships we're looking at are with, again, relatively major airlines that are very highly visible that we believe will get us into those industries. And because we're not looking for a capital investment upfront from these customers, it's going to be easy for them to make a decision because it's based on the savings we drive, not on what it's going to cost them to do what we're trying to do. So I think that's how we're going to become the leader in the industry and noticed by the large players. I've got a question on cash flow for Q2 and 3. I cannot talk about those things as a public company, but I'm comfortable with where we are and what we're doing as being able to survive as Barry said. Are you discussing with airlines plan to capitalize on the economics of the 220? The A220 is a factory install of the AFIRS unit. Today, it's the same. It's an Airbus aircraft and the data buses are not hooked up. I believe once we start driving value to our customers that we will be able to convince Airbus to hook up the data buses and share in the savings to their customers, but that is not something that's been approached today. It's not something that we are working with Airbus on. It's something that I plan to do in the next 12 to 18 months to say, "Let's do this together." Some airlines -- okay. Some airlines will undoubtedly go under as a result of COVID-19. We don't have any customers today that have gone under. We certainly have some customers that have asked for extended terms, which we've granted. On the flip side, we've asked for extended terms from some of our suppliers and have been granted them as well. I think everybody in the world and particularly in the aviation industry is trying to help one another get through this and understand how we're going to come out the other end. We don't have any major customers that we see in as potential failures. There's a few small customers that I had been concerned about, but it seems that our flights in Africa haven't changed, they have been flying pretty steady. So it's too early to predict, but I don't see any big red flags on the bankruptcy side at this point. One of the advantages that FLYHT's always had is for our hardware. It's always prepaid. So we don't take a risk there. Our services are provided on an as-used basis. And if we're not being paid, we can turn them off. So I don't think we have a huge risk financially with any of our customers today. As far as actionable intelligence goes, there's nobody really out doing what we're doing today. Hopefully, we're the first out of the box. There are people doing certainly in small niche areas like engine maintenance, rotable parts, there's people doing those things, but there's nobody doing an end-to-end solution. And there's nobody who has access to the information we have. So I think we've got a really unique advantage and AFIRS is really going to play well in this. Somebody asked how did IBM provide you assurance with concerns for medical industry that Watson overpromised and underdelivered? Watson is a tool like any tool. And I think you have to be very careful how you use it. IBM doesn't give assurances. They give you tools, they give you training, they give you marketing support. And it's how we use it and how we deliver solutions to our end customers that are going to make us successful. So I know that every technology leader goes through humps and bumps. I've been watching Watson for the last 10 years and how it's evolved. And I think that they have built the tool set around it that gives us a real competitive advantage to quickly deliver solutions to our customers in a way that is affordable and can be done on a timely basis. And Brian Gardner asked about with the current financial cash positions, how long do we maintain current staffing levels? Right now, there are certainly no plans to change staffing levels. We've got lots of work to do, and we've got lots of opportunities to deliver value to our customers. If you can tell me how long COVID is going to last and how long it's going to take for our customers to recover some semblance of number of flights, I'll give you a better answer on that, but we're all in a wait and see mode. But the current plans are to maintain current staff levels and not do programs that require outside consultants and expensive tools and software and that should sustain us. So -- and Jack's questions just keep coming. Since we're no longer a SatCom provider for the Comac ARJ21, are you worried about China stealing technology from FLYHT? I think you guys should wait a week or 2 and see the press release on that one. When are you able to press release the IBM deal? That will be done when we get through the blue glue. The draft press release is with IBM legal department, and I cannot predict how long that might take. And I've already answered when can we expect to see a new CEO? I don't have an answer for that one. Okay. I think, here's one. A question is, are there any opportunities for us to collaborate with competitors? For years, I've been a big fan of coopetition. And I've always worked closely with other providers in our space before most of them got swallowed up. We were doing deals with Avionica and ICG and Skytrack. Absolutely, we will work with anybody if there's an advantage to our customers and there's revenues for us. So we're always open to that, and we're always in discussions with various people. All right. Oh, I've got one more question, no. A question again, when can we expect a new CEO? I have no date for that. It's when the right person is found. And we're not setting a date. Any other questions. All right. Well I think we will wrap this up. I appreciate everybody attending. I think that it was really nice to have people able to attend at least virtually and see the AGM. The change that was made to our bylaws that allow us to do this, we'll review the comments we get back and maybe every year we'll do them this way so that everybody can participate. So thank you all for your time. Thanks for coming and participating, and we're looking forward to a very bright future. I don't know, Barry, do you have anything you'd like to add before we go?

Nothing to add at this point, Bill. Thank you very much for stepping up to the interim CEO role, and we look forward to some great things happening soon.

Okie-doke. All right. Well with that, we'll sign off. Thanks, Ted, for organizing this. And as always, any questions to investors or to me, I'll try to answer as quickly as I can.