Gorilla Technology Group Inc. (GRRR) Earnings Call Transcript & Summary

This is Craig with RedChip Companies. Thank you for joining today's event with Gorilla Technology Group, which trades on the NASDAQ under the ticker GRRR. With us today, we have Jay Chandan, Chairman of the Board and CEO of Gorilla Technology; and Bruce Bower, Interim Chief Financial Officer. We will begin with a brief presentation in a moment and then we will answer your questions. [Operator Instructions] Before we begin, please allow me to read the safe harbor statement. This call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements pertaining to future financial and/or operating results, along with other statements about the future expectations, beliefs, goals, plans or prospects expressed by management constitute forward-looking statements. Any statements that are not historical facts should also be considered forward-looking statements. Of course, forward-looking statements involve risks and uncertainties. We now jump into a special Q&A session that we're going to jump into right this moment. Jay and Bruce, as you and I discussed a minute ago, we've been receiving literally dozens of questions from investors. We have compiled them, and we're going to give some of them to you, even while we collect even more questions from the audience right now, and I can see already people are writing in. So thank you for that.

Okay. The first question I want to ask you guys is, could you provide details on the expected outcomes of the partnership with BroadSat, particularly in terms of market expansion and revenue generation?

Absolutely. First of all, Craig, thanks for having us, and thanks to everyone at RedChip for hosting us today. I really appreciate all of the shareholders who've actually tuned in and thank you for being supportive. In terms of BroadSat, this collaboration with BroadSat, we're looking to actually break new grounds. What we're trying to do is trying to broaden our reach into satellite connectivity, advanced streaming markets and provide BroadSat with a more kind of established solutions and capabilities such as AI-driven solutions using edge, enriching content experiences and getting stronger connectivity across these different regions within the United States. Now we are expecting that these offerings to resonate very strongly in the range of verticals such as maritime connectivity, remote education, content distribution for media networks. And then finally, even secure corporate communications where we've been expanding ourselves into our SD-WAN solutions and so on and so forth. Now what is interesting for us is that in the short term, we are looking to create a go-to-market strategy and leverage BroadSat's global network. And we're looking for an incremental boost of about $6 million to $9 million in annual revenue for the first 12 months. And as we build our capabilities and secure further contracts, the traction will allow us to gain about $20 million plus or surpass $20 million-plus annually. Now this projected revenue uplift along with what we call the enhanced brand visibly in the United States and a very strengthened competitive position will fit very neatly into our long-term growth strategy. Now ultimately, the partnership helps us in terms of expanding into next-generation connectivity solutions in a very demanding U.S. market. Craig?

Thank you very much, Jay. Gorilla has just announced the launch of its self-branded AI GPUs in partnership with Edgecore Networks. This sounds like a pivotal moment for your company. Can you tell us what makes this launch so significant and how it positions Gorilla in the AI computer market? Additionally, what are the anticipated use cases for these GPUs? And how do you see them driving revenue growth and expanding your market presence in the coming years?

That's a good question. Now this is indeed a landmark moment for Gorilla, right? The launch of our self-branded AI GPUs is in partnership with Edgecore Networks. It's just not about entering the AI compute market. It's about fundamentally reshaping it for us. This is about helping the underserved regions. Whilst the global AI compute market is expanding rapidly in many regions, particularly in Asia Pacific, MENA, Latin America, North America, there are regions which are struggling to access scalable, affordable AI infrastructure. That's where we come in. Now the numbers speak for themselves. If you look at the global market today, the global smart cities market, which relies heavily on AI infrastructure, it is projected to grow from about $1.36 million in 2024, all the way up to like $5 million -- sorry, $5 trillion, I apologize, $1.36 trillion to 5 trillion it's staggering, what 25%, 28% CAGR year-on-year. Now these regions are experiencing what we call as rapid digital transformation while escalating the demand for the compute intensive AI solutions. So if you look at our GPUs, built on Intel Gaudi architecture and paired with Edgecore's advanced networking hardware, which are engineered, it meets the demands which are being put forward to us today. But what sets us apart is the deliver -- it's the capability to deliver a cost-effective, high-performance AI solution. Now when I say cost effective, it doesn't mean that we are going to be dropping our patents, and it's going to be dead cheap, but it also will help the smart cities optimize for growth and create an enterprise innovation solution. But for example, our AI GPU features a price-to-performance ratio that is virtually unmatched in the market today, enabling smart cities to deploy AI capabilities without extending their budgets, right? Most of these governments we're working with have a very set budget, and sometimes the budgets get squeezed. I mean we're going through a very difficult time right now globally. So what this allows us is to help these regions, provinces, countries grow and create energy-efficient AI solutions. But more importantly, it is beyond numbers for us. If you look at where Gorilla is stepping into, we're stepping in as a disruptor, not as a traditional player. We're not just filling the gap. We are actually leapfrogging in regions which are completely underserved. So this, for us, will launch perfectly and aligns well with our vision in the long term. Now we have a pipeline of nearly $2 billion as we're going to talk about it in more detail in questions coming forth. But with our partnerships with the likes of Edgecore and other players in the market like Lanner where we have actually started manufacturing our own CPEs in Thailand. This allows us to be at the forefront of a tremendous market opportunity, and this allows -- this Gorilla self-branded AI GPU allows us to play a pivotal role in the transformation, not just in the short term, but in the next decade to come, Craig.

Bruce, turning to you. Could you provide an update on the current status of the share buyback program?

Sure. So we announced over the summer, the share buyback, the total authorized buyback was $6 million. As of today, we spent $3.8 million on the buyback. There has been no new purchases in the last, say, 1.5 months. The buyback program is still open. We still monitor the market. We still believe that the shares are undervalued, and that's why the buyback program is still authorized, and I would say stay tuned.

And a follow-up for you, Bruce. Given the current pullback in outstanding warrants, does management view this as an opportune time to exercise the buyback program?

The -- well, the share price has gone up actually quite a lot in the last say a month. We see $7.5 as the share price now. A lot of the shares that we bought back were around $3.5, even lower. So we're not going to be aggressive at the current price. What we are watching out for is the warrants. So there's almost 5 million warrants outstanding with a strike price of $5.6. If we see that basically the warrants are proving -- being exercised and proving to be dilutive to existing shareholders, and we may pick up the pace of the buyback program. But so far, we haven't seen any of those warrants exercised. And I would note that the warrants are -- their term finishes in 2029. So they have 5 years to run, almost 5 years to run. So I doubt that we'll see a lot of those warrants exercised. I think we hold on to them.

Thank you, Bruce. Turning back to Jay. Regarding your recent press release on being shortlisted for a major contract, does this status indicate the presence of remaining competitors? Or is it simply a matter of finalizing terms and documentation. If competitors are still in the running. Could you provide insight into their identities and your confidence in securing the contract?

I thought you would never asked, Craig. But before that, I -- one of our friends and a well-wisher to the business actually has made a statement on behalf of Gorilla. And he is Abby, our partner from BroadSat, who wants to talk about all the good things we're doing. Craig. So could I [indiscernible]. [Presentation]

I am Aby Alexander, President and CEO of BroadSat Technologies. I'm thrilled to announce our partnership with Gorilla Technologies. Together with Gorilla Technologies, we are actively pursuing deals worth several hundred millions of dollars across the United States, focusing on delivering transformative connectivity and AI-driven solutions. This partnership is more than just technologies. It's about creating long-lasting impact on local communities by enabling smart infrastructure, bridging digital divide and empowering underserved areas. We aim to foster growth and innovation that will benefit people and businesses alike. This collaboration underscores our shared commitment to building a more connected intelligent future, and we are thrilled about the transformative potential it holds. Together, we are not just connecting people. We are building a future of opportunity, innovation and lasting impact. Thank you.

Thanks, Aby. So the question everyone has been waiting for, and I'm excited. I am super thrilled to confirm that we have progress beyond the short list. And we have been selected for the transformative project, which is roughly around USD 438 million in smart education. We have received global confirmation approval from the customer. At this stage, what we are doing is that we are working with the customer to finalize and formalize the terms of the documentation. Now at this stage, also, you did ask me the question, Craig. There are no remaining competitors, we have moved to the final stage. The prototypes are being delivered to the customer, all the testing has been done, networking and cybersecurity and so on and so forth, that proof of concepts are being built. But remember, projects of this scale and magnitude take time, documentation takes time. So please bear with me. But what makes this project particularly exciting is that it's just the beginning. This $400-plus million contract not only represents the first of the 10 planned phases of the project initiative and the broader initiatives of the government. There is a total budget of between $2.5 billion to $3 billion allocated for the project in its entirety. And I am personally working closely with the client to ensure flawless execution of the first phase while strategically positioning ourselves to unlock the remaining 9 phases. Now each subsequent phase will also bring additional opportunities. So that's why I am personally going to be spending a good chunk of my time in that region. However, this is not the only significant opportunity we are pursuing. Keep your eyes and ears peeled because we are in what we call a very transformative period. Our current pipeline includes much larger projects in other sectors and other regions. In addition, whilst our growing pipeline is significant, our proven ability to secure long-term contracts and to deliver helps position us as Gorilla to not only execute these projects, but also to capitalize on larger opportunities globally. You've all seen the partnerships we have built with Lanner, with Intel, with Cisco, with Red Hat, and of course, with NC Digy in Miami and of course, with Aby's company BroadSat in Boston. We are not just focused on a single project or a single set. We are not a one-trick pony. In summary, right, what is important with the message I want to deliver today is that this landmark win for us is not just a piece of much larger -- it's not just part of a larger picture, it is actually us building the canvas so that we can actually paint what we are going to be in the future. Now as we finalize the terms and move into execution of the project, we are aggressively pursuing other ambitious large projects. Shareholders can absolutely rest assured that Gorilla is poised for significant sustainable growth in the years ahead. But more importantly, again, we're building a robust pipeline so that we can deliver successfully. Craig.

Jay, could you clarify the strategic significance of the Intel partnership and the rationale for appointing Intel's CTO to the Board? And how does this align with Gorilla's growth strategy?

That's a good one. We have been a partner of Intel for the better part, I think, for 10 years coming up now. The partnership with Intel has always represented a major leap forward for us in fortifying our technological foundation. Now as we grow as a business. What it does is it grants us access to advanced edge computing capabilities, cutting-edge semiconductor innovations, that will both strengthen our solutions portfolio, but also empower us to deliver end-to-end customer solutions. End-to-end solutions, more importantly, making sure that we're able to break through and leapfrog technological innovations. Now by appointing Thomas, who is Intel's CTO for APAC to our board, what we have done is we have gained unparalleled insights into the latest breakthroughs in the industry. The emerging trends that will directly guide our product development. But as we go forward, it will help with our strategic planning. Now Thomas comes with not just the knowledge of these emerging markets, he also comes with a very rapid innovation, expertise and experience. What we are going to leverage with Thomas is that we're going to seize and understand where the market is going to go over the next 4 or 5, 10 years, anticipate those trends and shape the future of Gorilla, which means we are seizing this transformative opportunities, seizing success for Gorilla and making sure that we are delivering value for our stakeholders. But ultimately, Thomas' expertise will also help us identify and solidify Gorilla's status as a forward-looking leader and committed, which is -- I've always told you this, we are committed to sustained expansion, creating long-term value for shareholders. And that's exactly what Thomas brings to the table, Craig.

Jay, what is the plan for the Seattle office being set up here, he says? Does that mean Gorilla technology is getting contracts in the U.S. or sees that they have the capability to do so?

You heard just from Aby, right? What did Aby just say? He said we're pursuing hundreds of millions of dollars of contract. I can tell you, we've just been invited to bid on projects worth about USD 70-plus million. We just sent in the proposals a couple of weeks ago. We're very confident. I am personally confident that we've got a 90% chance to get it. But again, there's always a slipper to the cup and the lip. So we will work very closely with the customer to make sure that we will be at the forefront of that particular project. Now the reason why Seattle is because it's -- we think of Seattle as a strategic springboard for us in a bustling hub of what we call technological brilliance. We -- long-standing partners such as AECOM, NC Digy, BroadSat, Cisco, Red Hat, Intel, that's taking this up to a whole new level. We want to be closer to our partners, we want to be placing ourselves in a dynamic environment. But more importantly, we're also making sure that we're being innovative and we know what the market is anticipating at any given point of time. But the good news is once we open the doors in Seattle, we already kind of started receiving inbound requests. There are a lot more apart from what Aby has already talked about. We have deep bonds we have created in the last 10 years, and that is helping nurture further revenue growth within the business. So what I am planning to do is I'm going to be also spending some time in the U.S. over the next few months. I'm going to be sharpening our relationships. And going to customers with offerings which we can provide, both in terms of AI and cybersecurity. So once again, keep your eyes and ears peeled.

Bruce, turning to you, please. Is Gorilla pursuing non-dilutive funding options? And if so, will this strategy be clearly communicated to investors?

Yes. So in the previous webinar, we communicated this, we continue to communicate this. We are looking at nondilutive funding options. The main reason why is we saw the reaction from investors with the share price earlier this year when we did issue a lot of shares with quite challenging terms. The business generates cash. It generated cash last year, this year, forecast to generate cash next year. So we believe that the lending markets are open. So we're in active discussions with lenders. Now we've received term sheets. That's all I'll say at the moment. The advantage is really twofold. The first is, of course, number one, there's no dilution for shareholders. The second is that if we have access to debt funding, then we can tackle some of the projects that Jay has mentioned on this call and then also the pipeline. The pipeline is $1.5 billion. That's not all in 1 year. That's over many years. But of qualified opportunities. And our ability to win those contracts goes up if we can turn around to the potential clients and say look like, here's the term sheet, we're funded. The other thing I'd mention is that we have a -- we own a real estate asset in Taiwan, which it is appraised at around $25 million, and we have initiated the sale process. This is not going to be a quick process. It will probably not hit until the end of next year. But we have started to pursue that sale process just to unlock cash as well that we can reinvest into the business.

Bruce, there is mention of a new warrant offering -- warrant offering linked to the stock price exceeding $5.90. Could you explain the specifics of this offering and its anticipated impact on Gorilla's share structure?

We issued warrants earlier in the year. So basically, we did a preferred share offering and then those who participate in preferred share offering also got warrants. The warrants were struck at $5.60. So we have nearly 5 million warrants outstanding with a strike price of $5.60. This is known. Those are already out there. So far, the holders of those warrants have not exercised them. So there shouldn't be any impact on the market from that, and there's no impact on the company. The only impact would come if those warrants and the company received cash in exchange for issuing new shares. So yes, that news is out there. There's no plans to issue new warrants and certainly not at $5.60, given that the share price is higher.

Jay, with projections indicating strong revenue growth and major new contract wins, what are the key factors driving expectations for 2024 and 2025?

Craig, let me break it down with you some real numbers, okay? And not just on fluffy optimism. First of all, we're headed into 2025 with a solid -- let me rephrase that, a rock solid backlog of about $93 million. That is work already secured and in the bag just waiting to be executed and to be delivered. On top of that, we're sitting with very pretty revenue projections of between $90 million and $100 million for 2025. And I'm confident that we have effectively achieved the targets for the next year. But here's where it gets even more exciting. Our pipeline now, as Bruce alluded to $1.5 billion, it's actually a little more than $2 billion now. Yes. You heard it right. I'm just following you guys on stock bids and everything else. Yes, it is more than $2 billion now. And these are not speculative opportunities. Trust me, guys. When you guys know me better, and if you talk to me, you will realize, no nonsense kind of a guy. So when I say it's not speculative. It means these are transformative deals, which we believe are spanning over multiple years. These are not onetime projects. We are looking at recurring revenue kind of projects where we can actually bill the customer for the next 5 to 10 years. Now to put this plainly, 2025 is very much on track. My focus singularly is now on 2026 and beyond. I have left it to the team to focus on 2025 because the contracts are already secured. We've got the backlog here. We're delivering and all we need to do is make sure we don't screw it up. But 2025 and 2026 is about building the foundation. What we are doing is that my singular focus, as I said, is 2026, that means I need to go out into the market and get contracts, large contracts. And what I'm confident about is that I am very confident in Gorilla's ability not just to secure these contracts, but also to deliver them and make sure that we have long-term sustainable revenues. Now once the ink is dry on this particular project, which I just mentioned, that alone will bring in about $85 million a year for the next 5 years. And of course, then the project continues. As you know, we've got 9 different phases and so on and so forth. This is the first of the 10 phases the government has budgeted for. But then you've got our partnerships with the likes of BroadSat. Aby just talked about it. We are going into the market where we are actually going to target hundreds of millions of dollars in deals. And this is in the United States, right? The first year alone, we're expecting about USD 6 million to 9 million. And then my conservative projection is that I think we'll do about $20 million annually, give or take. Now -- well, we've got Bruce and his team who are literally working day and day and night to make sure we remain profitable, but at the same time, we're also pushing the boundaries on our profitability. Furthermore, once we -- since we've opened up our Seattle office, and I talked about it in the last question, the -- that allows us to, one, hire more people in the U.S. but get closer to the likes of Intel and Red Hat. And it's not just about branding. This is not a partnership. I just want to put on my website and say, "Yes, we've got great people. Thank you very much." No, that's not what we're doing. We're helping open doors both ways, right? If you see our partnership with Red Hat and more to come in the next few weeks, it's -- the relationship is beyond a simple partner. It's a mutually beneficial enterprise-level contractual relationships, which we are trying to build, right? This will also help us build recurring revenues. And more importantly, this is not a spine -- pie in the sky target, what we are looking at is hard contracts. So the momentum is unmistakable. We're not dreaming big. We're actually delivering big. So as we go forward, Stay tuned. Keep your eyes peeled. We're just getting started. Craig?

Yes. Bruce. I saw that your hand was up. Did you want to add something?

Yes. I just wanted to add 1 thing. So it's -- we've issued guidance for next year of revenue of $90 million to $100 million. As Jay mentioned, that is based on the backlog of $93 million. That does not -- that forecast does not include any contract wins that we have yet to announce. So for instance, the project where we've been shortlisted that Jay describes, is not included in the forecast for 2025. Any other project that we could potentially win in 2025 is not included in that forecast. So I would sort of want to hint that there is risk to the upside to the 2025 forecast if any of these contracts that we're telling you about is signed and converts.

Thank you very much, Bruce. What specific actions, Jay, has Gorilla taken to address and prevent market manipulation of its stock?

You touched on a very sensitive topic for me. Okay. First, let me say this. What's been happening with our stock is not just frustrating. For me, it is deeply, deeply personal, right? It is not just numbers or charts. It's about trust and hard-earned investments of our shareholders and the tireless work of our employees. I mean, you guys have to come and see how hard these guys work. I have employees working 24, 36 hours without going home and making sure that they have dedicated to building something extraordinary, right? All of their share and their stock options and their RSU values have been completely depleted. I feel sorry for them. I feel great pain. And I take it seriously, right? I am taking this very seriously. You may see me laughing. You may see me out and about in my Megadeath T-shirt with -- having dinner with my employees. But trust me, deep down, I am pissed off, and there's nothing else, I would say more than that. But let me get to what we have done, right? We have taken very decisive no nonsense steps to tackle legally and take the -- address this head on. Now a lot of people, and I keep following the boards, yes, Chester, I am following the boards very actively. And there's another guy, I forget his name, I deleted Robinhood, you keep giving me a lot of good advice. Thank you. What is interesting is that people think that we're full of fluff and that we're not doing anything in the background. Trust me, we are. We have engaged with Global Economics Group, we have got experts who actually analyzed all of the trading patterns. We found out that there was manipulation. In fact, without giving you a name, we also found out that 1 of the manipulators was put in prison back in 2003. How the hell is he allowed to trade? I don't know, but he's still trading, and he is trying to short us. But more importantly, we reported all of these findings to the SEC and other regulatory bodies. We have laid everything bare, urging action and accountability. But let me be blunt again. It's disappointing, and it's disheartening to see that no action has been taken yet, right? That, in action, hurts us. It hurts our shareholders, and it hurts our employees, and let me make one thing clear, it will not deter us. It will definitely not deter me, okay? We've also strengthened our internal monitoring systems. We are tracking irregular activity in real time and ensuring we can quickly issue anything that comes our way. Yes, on a day-to-day basis, there's nothing I can do because it's completely out of my hands. As you can imagine, right, these guys are -- they're trying to make quick buck, but that's not stopping me and it's not stopping us. We are pursuing every avenue, regulatory avenue, to make sure that everybody is held accountable. This is not just a battle for Gorilla, by the way. It's a complete fight for fairness for me, it's for integrity and everyone who believes in what we are building. So our shareholders deserve to see that they are truly rewarded. And I believe, I followed all of you guys over the last couple of years. There's a huge following for Gorilla. And I believe that our employees deserve to also see that their efforts are valued. So I will personally not rest until I have secured justice, and make sure that we have created stability for our investors, employees and our partners, Craig.

Jay, given that the share price is still considerably undervalued, corresponding to less than $0.80 free reverse split. Is management considering insider buying of shares, not buyback, he emphasizes, to give a strong message to the market that the share price is grossly undervaluing the true value of the company. In my opinion, he writes, even a small investment on your part would send a strong message to the market and provide immediate and long-lasting support to share price.

Craig, absolutely, yes. So we -- it's not just the management, the Board is also committed to buying some of the shares as well. We currently -- as the biggest challenge we've had is that as an FBI, we only report twice a year, and there are only certain windows which open up for us. So Bruce and I have collectively decided along with the Board that we are going to go quarterly reporting. And post reporting, there is a window that opens up. The first window that opens up, I and the rest of the management team, along with the Board, will personally buy shares. And I still believe this is highly undervalued as a business. Apart from that, the management is also actively exploring the possibility of substantially increasing the buyback program. And Bruce talked about -- I think he alluded to a number of 2.2 million still left in the kitty. Bruce and I are working very, very closely both internally as well as with the Board to determine if we can raise that to about, let's say, between $9 million and $10 million, depending on our cash position. We are very conservative in our approach. We need cash. Obviously, we have to preserve cash. But more importantly, we want to make sure that we believe, we all believe in the company's growth prospects. So once a final decision has been made, let's say, come January, we will promptly share the details with all our shareholders.

Bruce, turning to you. Gorilla's cash flow -- Gorilla's operating cash flow, excuse me, has experienced a burn through the first half of 2024, despite reporting positive net income. What measures are being taken to improve cash flow including potential renegotiation of payment terms for future contracts?

Let me explain what happened in the first half. So we were performing work on our largest contract in the Middle East and also on our second largest contract in Taiwan. And both of those, we didn't hit a milestone at which we could bill. So if you look at the balance sheet at the end of the first half, there was a huge number that was reflected in contract assets. Contract assets is a fancy way of saying unbilled revenue, revenue where we haven't sent a bill and accounts receivable, which is where we've performed the service and we sent the bill. And then in that case, we were waiting to get paid. We put out press releases over the summer that those receivables that we had sent, the bills that we had sent were paid. The cash balance was up to $41 million unrestricted at 1 point in the summer. We have invested some of that cash into a share buybacks of the business into the hardware ordering cycle for 1 of our contracts. So now that cash balance is lower. Now it's about $8 million unrestricted. We have an additional $16 million of restricted cash. But we still anticipate that the cash flow from the business will be robust. One of the things is that some of the guarantees are going to roll off in the next 3 months. We're also sending a lot of invoices before year-end. And then in the case of 1 of our large contracts in Taiwan, we were able to collect about $7.75 million from that contract in October. So we're happy with how the cash flow of the business is performing. For next year, we forecast that the EBITDA to operating cash flow conversion is 100% or greater, and that's driven by the fact that the normal business will produce cash and also some of the guarantees we have will be released. So we expect the business to continue to perform based on the existing contracts. The other thing I would say is that in some of the contracts in the past, we've been more price takers in terms -- with the terms. In the future, we're much more attuned to milestones and billing cycles. So that we get more frequent milestones, thus more frequent opportunities to build, and also we don't have to invest as much into the contracts when we start either in the form of guarantees or in terms of working capital, thus protecting the cash flow.

Thank you very much, Bruce. And this would be for either of you. As a long-term shareholder, he writes my primary concern is the potential for a buyout particularly given the current undervaluation of the company. Is this a scenario the company anticipates or views as a risk? If so, what strategies are in place to safeguard against such an outcome?

Bruce, do you want me to take it or do you want to take it? I'll take it. Okay. So Craig, that's a very interesting question because we just got approached by 2 others in the last week or so. And my response to them was very French, if I may. But that said, and I'm sure you know what I meant by that. I -- let me put it this way, Gorilla is not for sale, okay? We are growing this business. We believe that I've gone from literally having 10 products to 90 products. We've gone from no patents to 29 patents, 5 on the way, 27 trademarks. We're not going to be selling this business now, until somebody comes up with a stonkingly, stonkingly insane offer. Yes, we're undervalued. People might think that if I put a 100% premium on where they're trading right now, let's assume that's $90 million, they could still buy us for $180 million. We're not here for $180 million. Let me put it this way. So anybody who even thinks of approaching, we have a very strong set of shareholders, a very strong Board and more importantly, a very strong management team who's committed to this business. So no, we're not selling out. And of course, we have all the protections in place.

Gentlemen, have you considered paying out either stock or cash dividends? Doing that could potentially help you fight the short interest in your stock.

Yes, we've considered it. This is not something for the near term. But given the strength of the pipeline, if we are able to convert and get enough profits, then yes, we would consider a dividend. The dividend policy is something to be taken up by the Board, but the business generates cash as is. We've directed that towards shareholders already in the form of a buyback, and we'll continue to do shareholder-friendly measures if there's excess cash.

Do you have any institutional investors? Also, are there any brokerage firms following your company?

Bruce, go for it.

We have many institutional investors. So you can see from the SEC filings, who some of the largest holders are. Name brand institutions and then we've become aware from RedChip of a couple of new institutions, very high-quality names that have become shareholders recently. In terms of research coverage, we are covered by several brokers, so we're covered by Northland, we're covered by AGP, covered by Kantar, I'm forgetting one.

Water Tower.

Water Tower, yes. So -- and if I forget the fifth one, I'm sorry. But -- so we're covered and then we've talked to several other groups about expanding the coverage. So we're trying this is a good channel of getting more information and higher quality information to investors. So we continue to have an active dialogue with the research analysts. And then we recognize that it's a good way of sort of socializing some of the more important or -- and also the more detailed figures to the investor community. So we'll continue to work actively with research analysts.

Speaking of research analysts, we have a question from someone who is covering your company, Michael Latimore. Mike wants to know, is your new GPU needed in that smart school deal or next stage of Egypt? Will you sell the GPU as an independent product or always as part of bigger solutions sales? Are the Egypt hardware deployments on track for the fourth quarter? What might gross margins be in 2025? and what are key revenue sources for the fiscal year of 2025 beyond Egypt?

It's the entire webinar, by the way. I love Mike. Can we go -- each question one by one. Is that okay? I really want to make sure that I -- yes. What was the first one?

The first question, Mike asked. Yes. First question Mike asked was, is your new GPU needed in that Smart School deal or next stage of Egypt?

No, it is not. But that said, we are actually actively pursuing 4 or 5 other deals where we're going to deploy them. And we have already been approached by a couple of data centers who are looking at alternatives to the incumbent, without naming the incumbent.

Okay. The next question was, will you sell the GPU as an independent product or always as part of bigger solution sales?

Always as part of bigger solutions sales. I mean, Gorilla is not in the business of selling hardware. And the reason why we built this was because it allowed us to actually work on much larger solutions. And I'll give you an example why, Mike. The challenge we've had is that it's the one-stop shop, it's the platform as a service model, which we have been talking about for 2.5 years. You know me for 2.5 years now. What we wanted to do was we wanted to align with the customer who's talking about building these data centers. For example, we are building 3 data centers right now in the Middle East, North African region. And what has happened is that we've been dependent on what we call these AI GPUs, which are exorbitantly expensive. And every time the price just goes up and we're not able to and the customers just keep overextending their budget, which is not a good thing to do. So what we're trying to do is now go back to these existing customers and some of the newer customers, especially in Thailand, Indonesia, even in Philippines and Latin America, to deliver what we call cost-effective solutions. So that they can also have the same AI capabilities without going through -- burning through their pockets. So in a nutshell, this will be predominantly focused on what we call delivering the solution. Similar to the story, which we had with the CPEs, we built -- we are manufacturing our CPEs in Thailand. We're not a hardware player. We're not selling the CPEs. But combine that with our SD-WAN solution, we are going to be absolutely ripping through the market because we are delivering something which at a price point, which is absolutely insane. What was the next question, Craig?

Yes, it was are the Egypt hardware deployments on track for the fourth quarter?

All on track, in fact, ahead of delivery right now.

So we stick to our guidance...

Sorry.

No, I'm just saying we stick to our guidance this year.

He wanted to know what might gross margins be in 2025?

Bruce?

We are looking at greater than 40% gross margins across the business in 2025. In our main projects that make up the bulk of the backlog, that is the gross margin that we're working towards. And then that's the cutoff for any new business is really 40% gross margin is the minimum. And then we are trying to shift it even higher. So yes, that's the forecast.

And we're past the top of the hour, we have many more questions than we could possibly get to. But if you have questions that you would like to see answered, e-mail us at [email protected], you might even want a copy and pace the question that you have in the queue here that we're not going to be able to get to and e-mail it to us at [email protected]. Jay, final question. As you close out the year, what message would you like to convey to shareholders regarding Gorilla's long-term vision, financial health and commitment to delivering value? What excites you the most about Gorilla's prospects in 2025? And what are the key milestones we should look forward to in the coming year?

You put me on a spot here, Craig, that's good. Let me start by saying this, 2024 has been a year that has tested us and I am not exaggerating. One day, I'll sit down with all the shareholders in our shareholders' meeting, which I'm planning to host. We're going to do something on an annual basis, and I'll invite both retail and institutional investors and our analysts together, including some of our customers and partners. We are planning this for '25, but I don't think so it will happen in '25, hopefully, in '26. It has shaped us and has pushed us forward in ways we had never imagined. To our shareholders, your belief in Gorilla is absolutely amazing, especially in the face of challenges. It has been a foundation of everything we've achieved, right? But for that, I am totally deeply grateful. Our long-term vision is ambitious, and we are not going to apologize for that. But more importantly, entering into 2025 we are in a position of strength, both financially as well as in terms of pipeline. My focus, as I said previously, is going to be predominantly focused on 2026 and beyond, right? But what excites me about 2025 is the scale of the projects we're working on, whether it's our SD-WAN, CPE solutions, whether it's our GPUs or whether we're building data centers or we are just literally going after massive AI deals, which are unheard of, right? We're talking about hundreds of millions, if not even a few billion dollars. We believe that we are setting ourselves up for success, whether it's partnerships with Red Hat, whether it's BroadSat, whether it's AECOM, whether it's Intel, Cisco, Lanner, Edgecore. We're already driving transformation on these projects globally. All our shareholders, again, once again, I want to thank you. I know a lot of you keep fighting. A lot of people abuse me as well. It doesn't matter. But guys who are fighting for me, I really want to thank you. I want to thank every single employee of my company who's actually delivered value and make sure that their grit and their commitment and most importantly, their belief in me is what we are building and what we are striving and driving forward towards. Now this is not just a battle for Gorilla. It is a battle of fairness and integrity. I talked about it previously. But more importantly, I believe this is a journey. And it is a journey, I believe, will change Gorilla's future and its potential. Now I did this in 2022 at the podium of the NASDAQ when we went public. And let me paraphrase this beautiful quote by James N. Watkins, "a river cuts through rock, not because of its power, but because of its persistence." I love that quote because that persistence is what defines Gorilla. So it is what has brought us here and what will take us to new heights. So thank you for trusting in us. Thanks, everybody, and I really, really wish you and your families, Mary Christmas and a very happy new year. Thank you.

Thank you, Jay. Let me just give the many attendees a way to reach us with questions about your great company. As I said, you can e-mail us at [email protected]. You may also call us at 1800 RED CHIP. Also, please visit the investor information page created by RedChip for Gorilla, it's grrrinfo.com. There, you can view and download the investor presentation and fact sheet and sign up for news alerts on Gorilla. Please watch Small Stocks, Big Money, RedChip's program featuring exciting small-cap companies, every Saturday night at 7:00 p.m. Eastern on Bloomberg USA. Join RedChip's next webinar with bioAffinity Technologies on Thursday, December 19, at 4:15 p.m. at U.S. Eastern. Register for [email protected]/events, where you can also view an archived version of today's Gorilla webinar. Thank you again to our many participants, and thank you, Jay, and Bruce.

Thank you, everybody.