Hyperscale Data, Inc. (GPUS) Earnings Call Transcript & Summary

All right, everybody. Thanks for joining us. Let me get started with the forward-looking statements, which is a normal thing we have to do every single time, but welcome to the Second Annual Investor Day. I know the last one we had was in New York, in person, and it was an all-day event. But today, it will be shorter. We're going to have each company comment about 20 minutes at a time, followed by a few questions, and then we'll go through the introductions real quickly here. So we can get started on the safe harbor. Thank you.

Good morning. The safe harbor is provided within the presentation. However, it sets this presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, the statements about DPW Holdings, Inc.; DPW; expectations regarding the market demands; future financial performance; the implementation of strategic plans and future growth. These statements are made based upon current expectations that are subject to known and unknown risks and uncertainties. DPW does not undertake to update forward-looking statements in this presentation to reflect the actual results, changes in assumptions or changes in other factors affecting said forward-looking information. Assumptions and other information that could cause results to differ from those set forth in the forward-looking information can be found in the presentation and in DPW's filings with the Securities and Exchange Commission, including its most recent periodic reports, including the risk factors listed in the Form 10-K for the year ended December 31, 2019, the 2019 Annual Report, as amended, available on our website and the Securities and Exchange Commission's website at www.sec.gov. Now we'll begin the presentation.

We have little, what do you call it, little glitches doing a virtual conference. Okay. So here's today's agenda. They're going to be opening remarks. This is the -- where did you get this deck? All right. This is the lost deck I was sent. What time was it sent to you? Last night? Well, this doesn't have Will on there. And this is very scary that you have the wrong deck. So opening remarks will be with myself and Will Horne, followed by -- followed by Gresham Worldwide, JR Read and Tim Long, along with -- the next presenter will be Coolisys Technologies Corp., which is the Power Solutions business, and then finished by Darren. Hold on 1 second, please. We're going to have to fix the deck. This is not the right deck. Okay. Ken, would you do me a favor? Would you e-mail Joe the very last deck from last night? Okay. All right. Sorry about that, everybody. A little delay there. So opening remarks, myself, Will Horne. We'll move to Gresham Worldwide, our defense business, presented by JR Read and Tim Long. Then we'll move to Coolisys Technologies, Power Solutions business; our EV charger developments with Amos Kohn, the CEO. We'll finish up with the Alliance Business, which will be Darren Magot. And then Will Horne and myself will wrap up, and the new CFO of DPW, Ken Cragun, will be on too, which is great. Let's go to the next slide. So here's a basic overview for people who are new shareholders to the company. Gresham Worldwide is our defense business. We are a true holding company. The parent company literally has shared resources. We help oversee reporting, accounting, capital raising, et cetera, at the parent company. And Gresham Worldwide, Coolisys Technologies and Alliance are all separate subsidiaries. We reorganized the company into what we think are 3 really easy things to understand. They all are generating revenue now, and they're all very easy, clean to report, separately and internally. When you say operating company, to provide autonomy to the subsidiaries, to raise permanent capital and to help each company grow. We look at each business independently as their ability to someday possibly be an independent company. But right now, we're all one big happy family. Next slide. So this is the current structure. Some important things to point out on this slide is we did, last year, create an Executive Committee made up of myself, the Chairman and CEO; Will Horne, Vice Chairman and recently appointed President; Henry Nisser, Director of EVP and our General Counsel. If you see the stars next from the asterisks, they're on the Executive Committee. We meet every day. And the Executive Committee makes decisions at the parent company together. It is not a solo act by any stretch of the imagination. It is a true Executive Committee that meets and gets input from not only the 3 of us, but really important people at the company like Ken Cragun, the CFO; Darren Magot; David Katzoff, our Senior VP of Finance; and Joe Spaziano, who is our Chief Technology Officer, which helps oversee infrastructure. You see that the company is divided into 3 sections. Gresham Worldwide, led by CEO, JR Read, as I had mentioned a few times. Coolisys Technologies, run by Amos Kohn, who has been with us, I think, for 13-plus years. He was the CEO, at one time, of Digital Power Corp. and was President of DPW for a while. And then at the Alliance business, you have Darren Magot, who's been with us for a few years. All 3 companies, the addressable markets are beneath them, and you can see all 3 -- all the subsidiaries that run underneath each company. Let's go to the next slide. We wanted to put an overview together of the current holdings, sort of strategic goals. And these are really the 3 categories we focused on: Defense, with Gresham, Enertec, Microphase; Power Solutions with Coolisys, Power Plus, which is a brand; and then Digital Power, which is an old legacy business that has been part of DPW for approximately 50 years. And then the financial services and digital business, the digital business has evolved over time and is starting to generate revenue. And we have, obviously, a California-licensed lender. We have an e-commerce marketplace, which is just getting started, has been around for a year, but finally taking on clients. And then we run a digital learning strategy here. Let's go to the next slide. So Will, I'm going to have you comment on some legacy issues regarding the MTIX contract real quick. I think this is an important thing for people to know because we've had this contract for a while. And it's a big holding of the company. We're a direct shareholder. We're also a lender. Will, could you comment real quickly on the status of MTIX?

Sure. So I think everybody knows that we announced this contract several years ago, where we were -- we entered into an agreement to produce a total of 25 machines. We are, effectively, 90%, 95% complete on the first machine. We've got another machine that's about -- between 50% and 60% complete, if I recall. And we ended up, over the last year, really as we struggled to deal with some of our internal issues and our financing, COVID obviously delayed things, production was delayed. We have been dealing with really 4 or 5 large subcontractors. They're the contractors that produce things like the fabric handling unit, the optics, the laser, fairly large components. And they have been really understanding. We have been getting back on track with them, and we anticipate that we'll be able to start moving along with production late this quarter or beginning first quarter of next year. I will give you a further update, really, as it says in December of 2020. I wouldn't want to commit to anything beyond what I've just said right now.

Yes. I would like to add that I've personally been to Italy and England several times. And the device is wonderful. AVLP has 2 other devices that have already been made. So technically, where -- with where they are, device, the [ Whitehead and Meltem ] machines obviously are operational. This is really an important part of the future of the company. We've kind of got over our skis a little bit, but we think that it should dramatically improve. And we will update you sometime in December, but we want to make sure that it's clear that this is an important future part of the company. Let's go to the next slide. So before I start the Gresham overview, I want to say to everybody, I'm super excited about this year. Why? We have started off with a lot of optimism. We went into COVID. Really, it was a scary time for the company. As many people know, we discontinued our restaurant operations. And at the time we did it, I was very nervous about the fact that we were going to eliminate an entire division of the company that was generating revenue. So COVID has been a mix, a little bit of a mixed message. And -- but I want to thank everybody, the 133 employees we have, for sticking with us. It's been great, a big turnaround here. I'm super optimistic about 2021. I want to thank JR Read and Tim Long, Henry, the whole team, Will, Ken, David, Joe, all the staff, everyone that's part of the executive team, Amos Kohn, the Board of Directors, we have 2 new Board members, Howard Ash and Jodi Brichan. Everyone has really pulled together, and it's really, to me, made for a remarkable opportunity going forward. Like we started a couple of EV products 2 years ago. Those are starting to come to fruition, which we're pretty excited about things. And I know Enertec, Zvika, the people over in England that run that division, 2 young ladies over there that have been with us for many years, really a remarkable turn of events. And one of those turn of events was that, Will, I thought maybe you could just make a quick comment about when we shut down the restaurant operations, why that seems to have had such a big deal for us. I mean I think people can understand that COVID made it, in our case, with the restaurants we owned, virtually impossible to operate because we didn't really do delivery. But Will, I thought maybe you could comment on that section of us closing that down because I think that I still get questions from people about that. We want to make it clear that we've exited that business at the end of the first quarter.

Sure. So during the first quarter, we actually primarily -- well, we exited 2 businesses from the standpoint of operations, one of which was Digital Farms, the cryptocurrency space as far as data mining goes. And the second one, as you just pointed out, was the restaurant operations that we had conducted those operations through I.AM. In the middle of March, San Diego County, as everybody is probably well aware, like every other county, ceased in-room dining. And because of that and because of the, I guess, small margins or negative margins or profits that we were experiencing at the restaurants, it just didn't make sense to try and reopen these things up as some of those restrictions were eased. We currently carry those liabilities and complete only the liabilities on the company's financial statements. We have written off and take charges -- and have taken charges on all of the assets. At some point, in the near future, we will eliminate those liabilities. It just really boils down to the timing of when we finish some legal filings that need to be completed. When we do that, that obviously will have a positive impact on the company's overall working capital as you see in the balance sheet.

Yes. So I'm really grateful. And I really -- I want to emphasize how excited I am about where we are. It's a strange environment for us to become so positive in such a really messed up year, just 2020. I know 200,000 people lost their lives, and I don't want to be overly positive in the sense of -- during a pandemic, how bad things got for a lot of people. But one of the people we're going to bring on next, JR Read and Tim Long, I want to just give you a visual of what happened to me and the company and Microphase in 2020. About March, I got an e-mail from Tim that said we are shutting down our operations in Connecticut. And this is a really important part of the company. Tim will talk to you about the projects, the F-35 and what we do there. And a day later, Tim got a letter from, and I'll try to make sure I don't get myself in trouble, Tim got a letter from the Department of Defense, I believe it was, that said, not only you are not going to shut down, but you're going to stay open, you're a critical supplier. And it was, at that very moment, even though I always knew we owned something that was really important, to see that letter that Tim got and said that not only you guys are not shutting down, but you're an essential part of the business, really, Tim and JR have focused on the defense business in a way, especially at Microphase and Enertec, really all 3 divisions, Gresham Limited, the team here has really focused hard on getting us turned around, and they've done a remarkable job. I cannot tell you how happy I am that the defense business is improving. And in the period of time with COVID, not only did Tim turn the operations around, but he ramped it up and really -- just I think the revenue growth from year-over-year and quarter-over-quarter, if you looked at our last quarter, the defense business contributed substantially to making up for the fact that we were closing down the restaurant business. So with that in mind, I'm going to turn it over to JR Read and Tim Long, who run Gresham Worldwide, an important part of our defense business, our group. This is -- in the category of revenue, they are the largest producer of revenue for the company and really have a bright future. And Tim, I hope that if it's possible, you could talk about how long some of these contracts are. I had the privilege of being with Tim and JR in Arizona recently, along with Jeff Bentz, one of our directors, and Will Horne, our President. And it was remarkable to hear how long some of these contracts could potentially be, up to 2070, a pretty remarkable time frame. So with that in mind...

I'm sorry, Todd. Bear with me for one quick point. You asked about the impact of closing the restaurants, and I focus more on the factual side. But the reality is, I think one of the benefits, and I do view this as a benefit, is it really -- it created an opportunity for the company to become more focused. If you look at us before, we were in multiple, multiple segments. And I think it was difficult for investors to understand that. So right now, what we're looking at, as you pointed out at the beginning of this presentation, is we've got 3 divisions. We've got our financial services division, we've got our commercial division through Coolisys, and we've got our defense business through Gresham Worldwide. And those are the 3 businesses, the core businesses, that we're focusing on. And so this -- I did -- I do view it as an opportunity, one, to get out of businesses that I think was -- that were underperforming, but also, it wasn't our core. So go ahead.

Well, let me say, just let me add to that. And by the way, I apologize for the informal nature, it's the first virtual conference I've ever done. And we want to have a little bit of informality because we want to let everyone be able to talk. But I asked JR to join us about 1.5 years ago, and I apologize if I'm wrong on dates, and he really had to come into a turnaround situation. We had bought Microphase when it was on the verge of going under. We had acquired Enertec with a lot of optimism. They had some trouble with some Israeli issues, banks, but they're doing great now. And Gresham Limited was really focused on the naval destroyer business. And I think JR came into a situation, brought in Tim Long, and for the first year, operated where he had to let people go, but still remarkably turned this thing around. And I cannot stress to you enough how many inquiries I get about Gresham Worldwide now as a defense business, how many opportunities there are to roll up other defense businesses and how focused they are. And I think you'll get that with Tim. We kind of call Tim the G-man because he's a little bit kind of CIA. But he's a really solid operator. We're all really happy with this team. And so I'm going to turn it over to them. But this is an important part, and I really want to stress stability, because they have long contracts that make DPW, from a revenue standpoint, a lot more predictable on the defense side. So with that in mind, I'm going to turn it over to JR Read and Tim Long. Take it away.

Great. Thanks, folks. Thank you for attending. Tim Long is the COO of Gresham Worldwide. Many of you are seeing the name Gresham Worldwide for the first time. I'll explain to you how it comes to be -- came to be and where it stands in our future. Next slide. Next. We've basically taken 3 companies, as Todd has mentioned, the Microphase, Enertec and our Gresham Limited, and melded them into one cohesive group. All of our companies are at least 35 years old or older. All of them share some general attributes. They have blue-chip customers. They all have significant backlogs, which we'll cover a bit down the road. And they all emphasize value-added services and design services. The reason that we selected and pulled together these 3 is because it gives us a global footprint and presence as we have a head office in Phoenix, an office in Washington, D.C., an operations center in Connecticut for North America, Salisbury, U.K. for Europe and Karmiel, Israel for Israel and the Middle East. Next. Next. We offer bespoke technology solutions. We develop solutions for the requirements of our various customers. I'll let Tim talk about exactly how we do these technology solutions and why it's so important and so specialized that puts us in a unique position, where many of our contracts are totally sole-source contracts, where we're the only people who can and will make some of these very key components for our defense customers around the world. Tim?

Yes. So offering our clients -- many of our clients are -- it's a blue-chip list of clients, including the U.S. Defense Department and the ministries of defense around the world as well as a list of -- who's who list of global defense contractors. But in -- we build to our customer specifications. And in that way, we are -- have a way of limiting the field of competition. I would -- I don't -- I hesitate to use the word "sole-source" because there's always competition out there. But because we have these -- where we have designed customized products to our customers' needs, we -- it is very difficult for our customers to go to alternate sources for a couple of reasons. One, these applications are embedded in defense platforms that, as Todd was referring to, had very, very long life cycles. And if you change that technology, then it causes a couple of ripple effects. You have to redesign the entire kit if -- that our components go into or our solution enables. And then you have to retrain all the people who are maintaining those systems. So we design radio frequency, wireless communications devices, total end-to-end solutions as -- at Enertec, with all kinds of missile launch guidance, command and control systems and such.

The summary of what we do is we provide solutions that are custom-designed and we guarantee to manufacture and be on time and be cost-effective. And so it really is that bespoke technology solutions. We don't just respond to bids, request to bid, we actually work with our customers. Next. Next. Tim has really affected the turnaround of Enertec Systems -- I'm sorry, Enertec. I'm sorry. Enertec is a multipurpose turnkey operation based in Israel. It provides missile launching systems, missile tracking systems, missile test systems for the Israeli government and also by way of some joint ventures into India and other countries that we cannot name coming from the Israeli market. We again provide solutions and services. We do a full rack of missile testing systems and command control systems. We also do power supply, which is something you'll see throughout our presentation. In addition, we also have a medical division, which provides intravascular catheter testing for Johnson & Johnson. Next.

Hey, JR. Can you hear me okay?

Yes.

When I went to Israel to visit Enertec, I know that was in development, and I know that there was a contract earlier this year, I thought maybe could you touch a little bit more on the importance of that? I don't think people realize that Biosense is part of J&J. And can you maybe comment a little bit on the future of what you think we're going to be doing in medical there? I don't know if you can or not, but I know that when I saw it, I was pretty impressed.

Yes. We are currently -- we currently provide a catheter system that tests the alignment and sets them up prior to use. These systems are used in hospitals with the Johnson & Johnson Biosense system. We are -- actually, this week, we've rolled out our start plan on our Phase II second-generation system, with a view towards providing Johnson & Johnson and Biosense as well as other customers this really key technology that allows catheters to be used effectively and accurately around the world. So we see that -- I'll come to it in another slide, but we see this as a really big part of our business that doesn't move that far from defense. We're defending people's hearts and arteries.

Nice stretch, JR. Good job.

So yes, it's a big part of it. I'll let Tim talk about Microphase as he's affected amazing turnaround there. When we came in, I'll tell you, that if we had to tell Todd, Will, that we got about a week before we are obligated to shut the doors, now it's just thriving, growing and we're going to -- we're looking down the barrel of a great fourth quarter and a fantastic year next year with Microphase. Tim?

Okay. Yes. When we came into Microphase, we -- and in doing our due diligence, we saw the value in the company in a significant backlog of orders that had definite due dates associated with them and dollars associated with those orders and a great core of production workers who had stuck with the company through some very dark times. DPW came in, invested some capital that we requested to enable the company to buy parts and materials and let those people do what they do. They worked down that backlog, turned the company around from a significant loss to a significant gain, about a $2 million turnaround in gain in a single year. So -- and paid down accounts payable. Things are current there. We've rebuilt that backlog as we've restored customer confidence in the company's ability to deliver. And we've got additional multimillion-dollar orders coming in, in this quarter. So it's a great story. And then the potential for growth going forward is, again, we are embedded with clients who have requirements going out for 15, 20, in some instances, 50 years. So we've been fortunate enough to be involved with the F-35 program. And that program just continues to grow and grow with the U.S. Defense Department as well as the militaries of countries all around the world. But we've been involved in programs like the Patriot Missile program, the B-1 Bomber, the F-15, F-16 and in the opportunities there at Microphase. As Todd said, we made the decision to shut down. We got a memo from the Defense Department 2 hours later and had everybody back at work that Monday. You know what, we didn't miss a beat. And that's -- one of the great things about this business as well is that we are somewhat insulated from the pandemic. In times of turmoil, defense budgets tend to grow in this administration. Of course, the U.S. Defense Department budget has grown significantly. But that's the case around the world with our customers. So Microphase is doing well and has a great future.

Next. Gresham Power is a company based in Salisbury, England, and it provides defense contract power systems for all naval applications. We currently provide product to the Royal Navy as well as 9 other countries throughout Europe. Gresham has been around, I think, how long? 63 years? And we've taken on the Gresham logo because of its great heritage because it really extends a power position for us, and we felt that it was a really good banner to be running under on a go-forward basis. We do submarine surface fleets and helicopter starters and the like. So it's a strong small business that we expect to grow into a large business. Next slide. Next. So this is the structure under DPW. The 3 are wholly owned subsidiaries, next, of Gresham Worldwide. Next. We created a new brand with Gresham, and it's lived up to its reputation already. We have, through Tim and all those systems that we put in place, we have a total 0 COVID impact in terms of people becoming ill. We have a strong separation of work positions and working from home and combining all of the systems that take into account family situations and the like. We've been lion-like in producing systems to make sure that we stood up and operated. All 3 of our companies are in some of the worst hotspots for COVID: Connecticut and New York; the U.K., which is currently shut down almost completely; and Israel, which is completely shut down. But we're still operating. We're driving numbers stronger than last year, pre-COVID. I'm proud of them. The brand consolidation under Gresham Worldwide is going to give us a strong feel, a strong name and unity. All of our teams are very much behind it. We're going to retain the individual sub-brands as necessary for security clearances, safety certificates and the like. We will be launching a new social media program, which will push the companies forward. Now part of the lion-like tenor of the company is that we've gone back to basic blocking and tackling. Tim and I came in, and we understood what we had to do was just good old-fashioned management, blocking, tackling, reaching out to our customers, talking to our customers, reaching out to our employees, building solidarity within the organization, getting salespeople on board and really pushing for growth, pulling ourselves out of the "woe is me" status and pushing us into the "world is ours." And so we're -- everybody is embracing the Gresham Worldwide logo. And it's going to be something, I think, you'll see becoming nationally -- internationally recognized. Next. Next. One of the great things about the company, we have a backlog. We have a huge backlog of approximately $42 million. We have plenty of work to do. Part of our difficulties has been finding the right people to get it done and to make sure that it gets done on time, no returns, no customer complaints. We've seen that turnaround affected to the point where we're getting inundated with orders. And we're going to see a really strong fourth quarter as well as 2021 in terms of orders increasing and expanding. $42 million is a good platform for us to work off of. And I think that you'll see growth in Gresham itself, and Microphase is on track and Enertec is on track for these growth orders. Some of these orders are really quite exciting, that can't be talked about. But for instance, the Enertec growth is coming in a new missile system that's being done in conjunction with the U.S. and U.S. manufacturers -- U.S. contractors through Israel. So it's a really strong portfolio. It's something we can bank on. And so as we keep our doors open and operate, these orders are going to get bigger and bigger. And hats off to Tim for turning 3 companies into one really smooth operating group. Next. Next. The other thing we have, we have a backlog. But we have a backlog not with Harry's parts department. We've got some of the best names in the world in terms of our customers. And they're loyal. They've been working with us for 25, 30 years. They're thrilled about the turnaround that they've seen. We got on planes and went to see -- saw -- we got on planes and went and met our customers, which hadn't happened in some of these companies for 5 to 10 years before Todd and DPW bought them. So it was a big change. It builds confidence. It builds confidence within our own team that, wow, these guys really like us. And they're ordering more from us because we're doing a good job. So it's an all-around win-win of just getting out, dealing with the customers and treasuring them as being assets of our company, not just somebody that's on the end of a telephone line. Next. Next. Our market diversification, defense and aerospace. I will tell you today, I spent a greater part of early morning on the phone with a company that provides electronics for drone identification. It's something that we're looking to move into in terms of providing new products and new services, not just our existing product lines. Tim is also looking at other systems, that we're going to be building our own IP and our own technology. And so I see us moving into UAVs, as mentioned here, and as well as new products to be offered to the military. Medical, we're currently doing our medical program primarily out of Israel. The plan for our Phase II or generation 2 system is to provide it worldwide, not only that, but using our infrastructure of Salisbury, Israel and North America to provide global service, which is a really important component of what you have to do for the medical industry. We're also looking at telecoms and industrial applications for our broadband and other telecom products. Next. By the way, we are ITAR. Global footprint, I've already covered. We have the ability now to provide products and manufacture products from a high-tech defense-related position around the world. Next. By the way, Tim comes from a government relations background and is a really -- it's how we met, and he's really strong in his communications and inroads into the government.

JR, I already told everyone he was CIA. We're good, man.

Okay. Okay. He's just kidding around. And he's going to kill you, Todd.

He probably could.

The other -- as I talked about before, customization capabilities, it's the big difference. Provide solutions, provide technology and provide product, that's what we do. We don't just rebox existing product. Next. Next. Next. And we can run a slide show every once in a while, too.

JR, which slide do you want to be on, the revenue trend or this one? You're getting a lag.

Oh, I'm sorry. Our design competencies are numerous. We just had the AS9100 inspection. Tim, why don't you talk about our certifications, particularly what we went through this week?

Okay. Yes. So we just completed our ISO 9001 second-year surveillance audit. The auditors were particularly impressed with the progress the company had made. It is the ISO 9001 2015, and AS9100 certifications are critical to all of our contracts that are a requirement, that are -- we maintain that quality management system in our contracts. So we cleared that. And the auditors deemed our management review, our SWOT analysis and the executive initiatives to preserve quality as best-in-class. So it was a good audit for us. We also have certifications of all kinds of the MIL standards and with the Royal Navy requirements in Gresham Power. And we had, at Microphase -- and all of our operations have secure operations for working on classified work, and at Microphase, we do have a secure compartmented information facility, otherwise known as a SCIF, where we conduct all of our tuning and testing of our products. And we are actually working to take in-house several of the components that we use in assembling our finished products, and we'll be expanding our clean room in -- at Microphase and adding additional certifications in that process as well.

These certifications are strenuous, they're difficult, but they're absolutely necessary. They're hard on a small company like us. But they allow us now to move up forward to be a large -- a much larger company. Next. I'll leave you to look at the numbers, but it's -- that we are seeing numbers that are going to pop through on Q3, Q4, in excess of where we are today. And we're seeing that -- an upward trend even in the middle of COVID. So we're quite pleased. Next. Next. This is where everybody gets to take shots at me and tell me that I'm consuming too much something. But we believe that we're going to hit, for 2021, over $25 million, maybe $28 million and move forward to $40 million for 2022, a significant growth platform. We expect to grow organically. This is reflecting primarily organic growth. But we also are very, very active in the process of evaluating various acquisitions that are pure accretive acquisitions, not turnarounds. Tim and I are tired of those. We would like to add a lot more accretive acquisitions. And the market is ripe. We're being approached on a continuous basis for companies that would like to become part of us in a variety of different ways. Next.

Hey, JR. I think that's important for everyone to reemphasize, that JR's team is not looking to make any acquisitions in the turnaround space anymore. And they're very active in looking at smaller defense businesses that can be accretive in these 3 categories. And so I'm very optimistic with what they're doing there on the accretive side. We made a really strategic decision, and I think JR and Tim got a little exhausted with having so many turnarounds right away. But I think we're seeing really good opportunities there. And I think that that's something that JR and the team are doing great there.

And we expect to realize perhaps even some in 2020. But certainly, going forward, I would like to see some parallel growth between organic and acquisitive but accretive acquisitions going forward. Tim, I would like you to talk a bit about the defense project, the defense growth.

Yes. As I said before, the U.S. defense spending has done nothing but grow under this administration. And regardless of the results of the election, that will continue at least for the first 2 years of the next term because the new administration, or if there is a new administration, will have no impact on the defense budget until really the third year of their term. But in times of uncertainty and turmoil, defense budgets are going to continue to grow. And with regard to the U.S. environment, where Microphase is operating, the air defenses, the air programs are tending to grow the most. We are moving -- we have several legacy programs, with the B-1, the F-15, the F-16, Patriot, but we're also in programs like the F-35 and the B-2 Bomber, which have life cycles that extend out into decades. The other side of the business, whether it's the U.S. operations or in the U.K. or Israel, is truly global operations in selling to the militaries and defense contractors all over the world, whether those be -- JR had mentioned Saab, Indra in Spain, Aselsan in Turkey. And we're selling into the militaries and the ministries of defense in Commonwealth countries for Gresham Power and into the Middle East. The -- really the only impact that the pandemic is having in terms of our growth is just limiting our ability to go out and meet with people in person. But all of these programs are growing and expected to continue to grow at a very healthy rate over the next 5 years and driving organic growth for us and making acquisitions that much more attractive.

And how about this for -- I never thought I would live to see it. We've been contacted by the UAE and 2 other Middle Eastern companies to produce a product for them in Israel. It's a strange world we live in now, but it's one where the defense markets are growing in different ways, and it puts us in a very strong position. Next. As we mentioned, we're actively involved in procurement and foreign military support. There's a number of programs that we're participating in that we're not at liberty to discuss in great detail. Next. The India partnership is one we can discuss. It's a program where the U.S. government is funding a military offset project and they get credit from buying products from outside of India, and we're working with them to provide product directly through this procurement system. Next. Next. Tim?

Yes. So for the next couple of years, JR and I will be focused on the base, which is really the defense business and the opportunities before us in the military markets. However, the technologies that we have developed for defense applications in the telecommunications arena also have tremendous potential within the telecommunications infrastructure market as well as in enabling the Internet of Things, where devices increasingly are going to be talking with the Internet and control through the Internet. So the demand for wireless communications devices is going to continue to escalate over the next decade or 2. And so we are looking -- this is one of those areas where we are looking at developing our own independent IP based on the technologies that we have created in the defense market and market those into the major telecommunications carriers as well as the purveyors of consumer electronics and other devices that need to be able to communicate wirelessly with the Internet.

And it's part of our program to not only do what we do, have done for 45 years well, but to really start kicking in a bit of R&D to build for the future. Next. As the executive team is quite thin at the top at the headquarters office, unfortunately, you're stuck with me for a while. Tim Long is an outstanding executive. I've worked with him for almost 15 years now. He's a recovering lawyer by trade, but has been in defense and aerospace sectors for 40-odd years. David Katzoff is our Senior Vice President of Finance. Next. Recap. Strong, enduring customer relations, substantial backlog, global footprint, enduring brands and significant, I would say, very significant opportunities for rapid growth. I believe very strongly that we're tracking to be a $100 million company within 3 years. And it's very, very doable. It's a very exciting time to be in this space. And it's an attractive investment for DPW. And they've done the right thing. So I have to stress that DPW has acted now like a holding company, where they have provided us with support, provided us with finance, oftentimes, not as much finance as we would like, but that's a perpetual problem for companies like ours, a voracious appetite to build and grow. But DPW has acted like a turnaround company. They've taken us and they've allowed us to turn around the companies and create great value, where very little was existing when they bought them at the right price. But now it's going to be endured really strongly to the shareholders. Next. And that's about it. It's a pretty boring company in terms of product, but exciting company in terms of prospects.

Hey, JR. You can hear me, okay, right? So I do want to emphasize to everybody, and I appreciate JR and Tim presenting, there is an executive at Enertec that couldn't be with us, Zvika. There's a great team over there in Israel and as JR and Tim talked about, an important part of what they do around the world in terms of military stuff, a really good leader over there that JR works with really well. But it's no secret that JR wants to bring the company public. DPW has actively been exploring, we've said this to the public, the idea that Gresham someday would be a public company. JR, do you want to make any comments about, that I know we can't really say much, but maybe, in general, what your thesis is? Because I know that one of your frustrations is, is that other defense companies trade at multiples to revenue and we don't even trade at 1x revenue. Maybe you could give a comment on what your thoughts are about the future there?

Sure. The space right now is filled with small little companies that are owned by 70-year-old founders that haven't done their family planning correctly. And they're looking for exits. The big boys, the Raytheons and [ Groupe Dassaults ] of the world, have no interest. They're, in fact, actively jettisoning the small boutique type of operations and trying to get them off of their plate. So it affords us a great opportunity to buy the companies, cash flow-positive companies, earnings-positive companies at very attractive rates. We're looking at deals at about 1x -- under 1x, when the market for us is 2 to 2.4x in terms of revenue. We will not look at anything if there's red income at the bottom line. We will only look at products that are similar to ours in the same space, add value to our brand. And the brand is going to be something that we're really pushing. By pulling these small companies in under one brand, we're going to have the strength of engineers in Israel, engineers for power systems in the U.K. So we'll have other strengths to add to these small companies. And it is a Harold Geneen strategy corrected for the modern-day growth of a roll-up company in the defense systems. And so there is room for another L3. There is room for a really aggressive, strong, positive acquisition strategy and taking it public and recognizing for the shareholders, the successes we have in the turnarounds, the successes we have in buying right. And Todd shared a lot of that vision. And DPW has done a good job of acting as a parent company to help us grow. And watch us fly next year. That's all I have to say.

Will, do you have any comments before we wrap up with Gresham Worldwide, Will Horne?

No. I think JR and Tim did a fantastic job. I think the only thing I would reiterate is when JR makes the comment about where he sees the business in 3 years, he's referring to simply Gresham Worldwide, not DPW Holdings on a consolidated basis, which I think it goes without saying, but I just want to make sure everybody understands that.

Okay. We appreciate Tim and JR. We're going to -- we're going to move on to Coolisys Technologies Corp. and Amos Kohn. And JR and Tim, thanks a lot so much. I don't know if there will be any questions for you guys at the end here. Can I check real quick and see? I think, actually, we're running behind schedule, so we're going to have to move on to the Coolisys division real quickly here. And we'll try to answer any questions for JR and Tim at the end, but we do need to catch up here. So Amos, let me talk about Amos Kohn. I've known him a long time. I was invited in to buy a control position away from their former chairman when it was Digital Power Corp. Amos has a pretty long history. He's really an engineer who became a CEO, a former Israeli Commando, a parachuter, a tough guy, really tough guy, in the Israeli military, was wounded. I think he actually jumped out of an airplane one time and his parachute didn't open and he got up and walked away, and I'm paraphrasing a little bit, Amos. But Amos Kohn and I went -- many of you who know me personally know that I started my career off at a company selling things for HP analyzers to the cable TV industry and the power supply business. And when I met Amos, and we talked about the future of the business, we talked about the future being EV and power storage 2 years ago, I asked Amos to start looking hard at how we could get into the EV business. And a couple of months ago, he's delivered some products and continues to innovate and iterate in that space. It's natural, considering that Digital Power Corp. is a 50-year-old business in power. This is one of the most natural transitions I've ever seen. And with that, I'm going to turn it over to Amos Kohn.

Thank you, Todd. Thank you very much. And good morning, everybody. I will provide today an overview of Coolisys. Also, I would like to share with you some of our initiatives to grow the business into some emerging markets. Please switch the slide. Next slide. So what we do, we provide the future reach involved in the quality power supply and power products serving harsh environments and provide also a product that has been used in medical devices for life-sustaining applications. We also leverage our well-established 60-year-old subsidiary, Digital Power Corporation, to provide advanced power solutions for diversified markets, including the defense and aerospace, medical and health care, industrial and telecommunications. And most recently, we have released our electrical vehicle charger product line, and we're also getting into the energy storage solutions. Next slide, please. We serve the worldwide defense and aerospace customer, designing and manufacturing an advanced power solutions for tactical warfare environments and for nontactical implementation. And we also specialize in the wide range of power devices for medical applications. And we are compliant with all the applicable regulatory and safety standards that are required for medical power units. For the industrial and telecommunications market, we provide cutting-edge and very high-efficient power supplies. We use advanced engineering topologies for our power management. And we are achieving the highest density in our product line. We also just announced, about a couple of weeks ago, on our new high-density power release that we have been using for this type of application. Next, please. In terms of the structure of the business, we are -- Coolisys is a wholly owned subsidiary of DPW Holdings. And we operate using the Coolisys business to run the other initiatives and activities with our subsidiary, the Digital Power Corporation, and with our branded division, Power Plus, to provide power electronics product to our market mix. Next, please. So if I just list the activity in the -- under the 2 brands. So under Digital Power Corporation, we manufacture and design in a high-grade power product with the highest efficiency for diverse markets. Under our Power Plus brand, we develop and provide compliance in the value-added product, with customized configuration to meet the customer requirements and customer needs. Next. Here's some examples of the product line that we are developing and manufacturing under the Digital Power subsidiary. So most of the products are ruggedized product designed to withstand the harsh operating environment. We are a full-service company. We design and manufacture in custom and standard products. And we use many -- and our products are used in many different applications. Some examples of product that you can see on the right-hand side, the gyro stabilizer, L1 power supply, high-energy laser source, broadband power supply, storage systems. And also, you can see that our -- on the bottom, on the right bottom, our new electrical vehicle chargers. Next slide. Through our branded division, Power Plus, we provide a wide range of customized value-added power solutions. And some examples are on the right-hand side, such as the high-power multi-apparatus power system, regulatory-configurable power supply, scalable and branded power switcher and some others. Next. These are some of the certificates that we comply with. We've seen some things of those in the previous presentation. But for our medical and health care product, we obtained all the relevant medical and safety certificates. We are operating and going into some FDA requirements. For the industrial and telecommunication product, we obtained all the applicable safety certificates for electrical and electronic equipment. And for our defense product line, we comply with the MIL spec, relevant MIL spec requirements, including electronic interference, electronic compatibilities. We also provide a product that could be operating in a nonpressurized, high-altitude environment. Some of the product has to pass shock-and-vibration tests, so they can be operated in harsh environments. The facilities are all obtained on the quality and management system. And we have all the necessary certificates for operating and manufacturing product for our diversified markets. We also maintained our International Traffic in Arms Regulations, the ITAR certificate, that allow us to participate in defense-related formats. Next.

Hey, Amos. Amos, I thought it would be important at this point because I know you just put up the same ITAR thing. Maybe to explain to everybody that you do operate completely separate from the Gresham Worldwide defense business, so could you give them a little bit of an outliner of how you operate completely separate then, that you're a separate subsidiary, and maybe even though you are in some defense areas, how you are not overlapping. Because I think that when we show this to people and they say defense and medical and telecom, they don't realize we own 2 completely separate businesses with some of the same customers but different projects. Could you kind of outline that for them maybe in a couple of minutes?

Yes. And actually, it will be addressed in the next slide or so. But our defense business, and you can see this in this slide, it is about 18% of our total revenue, generate about 18% of our total revenue. It's a separate business to what Gresham Worldwide is doing. And it's mainly focused in providing power solutions for different defense applications, and I'll show this in the next few slides. We have a very strong relationship with a major defense OEM and some of the military and government branches. And we sell Power Solutions, totally separate to what Gresham Worldwide is doing. And again, it's mainly -- we participate in the power business. So we provide the power switchers, the power converters. We -- most of the products are customized. We provide a power distribution system to highly classified special forces vehicles and some other products. I will address this later on in some slides, in the next few slides. So I already said that our defense and aerospace generated about 18% of our revenue. In the medical and health care, we provide customized power solutions that go into different applications. And those are operating under all the safety requirements for either a patient contact product or a nonpatient contact product. And that is very important to understand. There is a big difference between a power product that goes and operates in an electrical bed engine and controlling a bed in the -- a hospital bed, or a product that goes into a surgical instrument that goes into your body for a procedure. Both need power, and we will provide then the power that is right for those types of applications. And so we are very -- we provide very high, dense power that is complying with all the requirements and standards of different types of medical applications. In the telecommunications business, in the digital business, we've been actually many, many years involved with this market segment. That is the initial market that the company went -- started a long time ago or where we've been focusing on. And we are continuing to provide a solution for this business. Some of the contracts that we have with our customers are over 10-year contracts. Just like Tim mentioned before, we have a very long relationship with our defense customers, which some of the contracts are reaching now 15 years. And with a medical customer, we have a 10-year contract, and with telecom, contracts are between 5 to 7 years. If I see those different market segments, the defense market is a long-haul relationship and allows us to participate for a very good long-predicted time. With telecommunication, it is faster-moving in implementing a solution, and then 5 years later, we go to the next level. And you need to participate all the time. With medical, we got about 10 years of the contract for each application. Next. This will show some of the application examples that we provide with our technology. I addressed this in some of my previous slides, like in the conversation. But there, for telecommunication, we provide the power switcher that they provide in the wireless infrastructure. We have a Korean customer, for example, South Korea, that is using our power supply in -- they have, on the border between South Korea and North Korea, they have a communication system that is -- that are used for identifying the movement and any interaction. And we provide the power that goes into those deployments. We've developed, in the past, a technology for the cryptocurrency mining business. I think that we have one of the most high-efficient power supply that can be used in the cryptomining servers. We also got a very high-end cloud computing power system that we use for back-end servers. And we have more -- other products. We are also, in this area, very focused on the broadband and broadcast area networks. We have a lot of experience, and we are just building the product to sell into that market. In industrial, we have a power supply that is powering semiconductor machines, laboratory equipment, diagnostic equipment. Some of our customers are mainly focused on -- in this area of instrument for diagnostic and for their laboratory measurement. We have a product that goes into oil drills infrastructure. And we provide control and solution for the large packaging equipment, very large printers, all using our products. In the defense and aerospace, we discussed this previously, we are classified and now classify a power solution that has been used mainly in our old customers to do a specific application that we are involved with. We provide the gyro position navigation system, that many use for an artillery system or a precise artillery system. We provide a tactical network and communication system that is mainly used by one of the military branches. And we have more examples. Medical, our product goes to dialysis, endoscopy, surgical equipment, as I mentioned earlier. Also, the oxygen concentrator is using our power supply. We are developing product that will be powering ventilators. And we are continuing to provide more solution and more product that is serving this market certainly. Next slide, please. Yes. As you can see, some of the icons are similar to the icon that are shown by Gresham Worldwide. So we share some of the customers in different applications, probably different segments of those companies. But the relationship with those companies are very longtime relationships. Most of the solutions that we provide are customer solutions and focusing on the power business. We're also leveraging the U.S. government Foreign Military Financing program, or FMF program, that will help some countries to purchase their defense equipment from the U.S. And we do have a relationship with overseas defense OEMs that buy our product, leveraging this budget. This is also something that I mentioned in the job presentation, and I think that there is a place for cooperation internally. Next slide. This is representing a list of our commercial customers and include our medical and health care customers, industrial and telecommunication customers. Some of our commercial customers, such as you can see below, [ Flex, Jadoo, Lexus ], serving major electronic companies. For example, if we -- and then we see Cisco here in one of the icons here. Cisco buys product directly from us, but most of the product actually has been manufactured by [ Lexus ]. So that's for the other part that will go to Cisco, and we have some other cross-examples. Next slide. So we operate through 2 facilities, located in Milpitas and Sonora, where in Milpitas, we have the Coolisys headquarters, and for others also, we have the Digital Power Corporation. And in Sonora, we keep our value-added division. We manufacture high-volume product through our global partners located in the U.S., in China, in Taiwan and in Israel. And we are using multiple sales channels to sell our product line. We grow in direct account managers. So we sign people that will be managing several accounts, and they know inside out of those accounts. The manufacturing reps, that many bring an opportunity for us, and we need to close the deal directly with those opportunities. And we do have also a market-focused distributor, which some of them are online distributors. Next. So I would like to cover in the next few slides our growth initiatives, which we -- some of them will be entering conversion, and we also announced some of those activities to the public. So the growth -- we found 2 areas where we want to be actually focused in, in growing the company. One is the electrical vehicle chargers segment. And the second one is energy storage system. For both segments, we have developed, for the last few years, I think, a great product. And those products will be available to sell very soon to the market. Please go ahead. Next.

Hey, Amos. Before we get into the specific EV products, maybe it would be helpful to describe to the market the different opportunities for revenue here. For example, I know when you were talking to that gas station chain about installing EV units there, can you talk a little bit about the model of providing the unit and the rev share opportunity there and the network opportunity there? Because I think that people's questions around EV are really what does the revenue model look like.

Yes. So we see 2 actually different revenue models. One is to sell the product, just to sell the product. We do have 10 different products all in the segment of the EV charger product line. Sell our product to a customer that will be using our product line with the deployment. And I do have some examples where it can be a good fit. The other revenue scenario will be to actually have a revenue share with, for example, in the gas station, and that's what we talked about previously, a gas station or any other commercial facility that will be installing our product, and we will share the revenue that we will be making or would be charging for using our product line. So we see these 2 major revenue opportunities for us. One is just direct sell, and the other one is we will be just providing the product, but we will be charging for the use of the product. And there is another element that is material, of which we also provide the component that goes into the charger. We are specializing in power obviously. That's how we all started. So we have the power rectifiers, models that go into the charger, a lot of chargers that are standard models inside stuck together, would generate the power that is required. And we can provide those models even to companies that do not buy the charger directly from us. So we can be a kind of a service provider company that provides the models that we'll be using in other chargers. So as I mentioned, it's about 2 years of development effort to reach to the point that we are right now, where we actually have a product line that is ready to release. And not all of the product are available yet. We continue to develop more product that are going to be added into the product line that we'll be offering to our customers. The product line, including both the AC charger and DC fast chargers, our AC electrical data charger, our Level 2 chargers, and our DC charger, our Level 3 fast chargers. Next one. So this is a list of -- it shows the list of our product line. Just recently, we also introduced our hybrid charger, where the hybrid charger allows you to charge both AC -- through an AC outlet in cars as well as for fast DC charging. And I think that, that is unique because this has allowed any type of car to be actually using our chargers. It's going to be here through the [ J-70 and 72 ] interface or [ JNO ] or CCS interface. So that is -- it's very unique. But you can see that there is a wider range of different charger types with 1, 2 or 4 plugs. And also, we are introducing our rectifier that is going to be used inside a charger. Next. Our target market is split to commercial and the private market, wherein the -- where, for residential, we are providing the Level 2 AC chargers, and for the commercial market, we provide the Level 2 AC charger as well as Level 3 DC fast charging. Our charger product can be used in different applications and different deployments. It is going to be used in a private garage, for example, a driveway, so not dwelling in the residential facility. At work, our charger can be used in the office building and parking facility, for an example.

Hey, Amos. I thought it would be important to talk to everybody about the government facilities, the electrification of regional and community governments in terms of what they're doing for electrification. I know that -- I don't know whether -- how well you're willing to disclose what's going on there on the commercial applications, but maybe you could give people an idea of the model. And I was particularly speaking about the very large charging units that charge commercial applications like buses and just effectively city governments. Maybe you could talk about that a little bit. Because I think that people want to understand how big the market potential is for deployment for us. They already know people like ChargePoint are out there. But I don't think -- I think we need to really kind of outline for them how big of an opportunity this is for you.

Yes. So e-buses and e-car or e-truck, let's say, is a huge opportunity for us. And that's why we were focusing initially on the very large charger and then scale down to small chargers because we see the transitioning to, especially in the municipal services, for moving out to a clean transportation. And so we believe that, that will be, for us, a very huge market. And we are -- our product has been designed to actually provide the energy that's required to fast-charge larger vehicles and not just private cars. That's why, as you can see in our product line, we are mainly focusing on the DC fast charging. Plus also when you look into our AC chargers, the AC chargers are high-power AC charger. We are -- have an investment conversation right now to use our charger with some public transportation, which I -- I'm not in the point to disclose right now, but we definitely see this as a huge opportunity for us.

Okay. So Amos, I think that I want to emphasize that again though. I know that you're in discussions with large commercial applications for charging. But I mean how big of a market segment do you think that is for Coolisys? Because I know we're not predicting what size of revenue we will have, but in terms of how big you think the space is for commercial applications, especially for city and state governance, how big of an opportunity do you think this is?

I would say just with a very, very conservative approach, I would say, at least $100 million a year in the future, in the near future for us.

Right. It's a big opportunity. Okay. Continue on. I'm sorry about that.

Yes. That's fine. So just continuing with this slide. So the targeted business-to-business market subsegment for -- working directly with auto dealership or automobile OEMS, I said before that we are currently marketing [ 20x ] retails that business with a large number of employees. And we have here quite a bit. And we are in parking services, facilities, local municipal districts and colleges. That is where we actually have a conversation, charging commercial vehicles and obviously government facilities. In terms of the product line that we want to offer -- we will be offering, the product line is split into the completed charging solutions or charging stations, the power rectifier that goes into the chargers. And also, we see that there is a need for services out and per services, and I think that this is a good opportunity for us to participate because we are -- that is our strength and we'd like to emphasize this. In terms of market that we see, opportunity for us to grow the business, so initially, it will be North America and then with expansion into EMEA and APAC. Some of the conversations that we have in regards to commercial charging, commercial vehicle charging is actually -- we have that conversation overseas in China, where there is a mandated government bill to actually move to all-electrical vehicle for public transportation in the next few years. Yes? So we won -- we were going to provide all the different plugs -- charging plugs option and also the communication, government communication. And so in our charger, we provide the North American standard, the J1772, for electrical vehicle. This is -- many have been used in level 1 and level 2. Again, we are focusing on the level 2. But that is available. This plug also, with an adaptor, can charge the Tesla car. The CHAdeMo has been used for many Nissan manufacturing cars such as Honda, Nissan, Mitsubishi. We have done some others. And that will be available in our DC fast charger. And obviously, we will be also providing the Combined Charging System, CCS, that can be used for either AC or DC charging and car manufacturing that are mainly using large interface, Ford and General Motors, BMW, German companies, also again, Audi, Volvo and some others. Our charging plugs are available -- any mix of the charging plug is available from our chargers. So for example, the charger with a 2 plug -- 2 charging plug, we provide the option either to use the CCS2 plugs or the combined CHAdeMO and CCS. With our hybrid charger, where we provide AC and DC charging services, we will provide the J1772 for the AC charging, and for the DC charging, any type of charging interface based on our customer need or based on what we see that is the best suit for the deployment that we're going to use the charger. Next slide. So this slide, just a more educational slide. I just explained the difference between the -- the difference between the levels -- charging level and the benefit for using each one. So level 1, it's new very short mileage of driving for 1-hour charge. And it's mainly used by private customer or residential charging overnight. Usually, the car dealership provides this charger bundled with the car. So we don't really see that give us a huge advantage to sell this type of product. However, charge level 2, already, you can use that for commercial deployment and for residential deployment. So there are companies that provide fleet charging services for multiple cars. It's higher power and allow you to charge multiple cars from a single charger or fast charging on a single charging interface. And obviously, this fast charger that we provide, we can charge car in about 30 minutes for almost a full charge capacity that allow a driver to drive about 150 miles distance for 30 minutes drive. Obviously, it depends on the driving behavior, road conditions and also the capacity of the battery. Next slide, please. Coolisys' Energy Storage System or ESS is actually our second initiative to grow the business. We just announced this initiative and product solution that we are going to offer to our customer most recently, today. So our energy system contains 3 major elements. It includes a hybrid inverter to support a wide range of deployment scenarios. We provide a battery pack for energy storage and data loader with a web-based monitoring for system control. That's around 3 systems on it. Our Energy Storage System allow our customers to better control their supply of electricity from solar system or from the grid. It can also be used as a backup, a power source doing power interruption. It's mainly designed to wall suit, to be used in homes and small commercial buildings, with solar system or without solar system. Next. Next slide, please. The Energy Storage System or the ESS can provide the user all the power needs for all the essential outlet at home. It's produced to -- it's designed to produce enough power harvested from a solar PV system or from other source of electricity. So it doesn't necessarily need to be tapped into a solar system. And it is a feature where there is a quota to optimize the yield of power generation from the Coolisys existing set and also to allow the customer to optimize the rate in the utility -- and the utility -- electricity from the electrical -- from the utility electricity supply. Next. The benefit that we see with our ESS system is to allow a continuous use during utility outage and interruption. And this is something that's gone very often right now, either here in California because of all the fires -- forest fires and because of the climate change. We see this more in the Mideast. And so that's really a good solution for keep the service without the interruption when we lose power. It also optimized the use of renewable energy and energy generation, and it allow additional reduction in the utility bills for the customer. And we're not saying that additional reduction in utility bills is where a homeowner has a TV system installed and he can hold on the system to be optimized and when to use it and when to actually provide the services and power to the grid company. We can -- the product itself or the system can be coupled with either legacy solution...

Amos, I apologize. We're way over time. Unlike last year where we had an 8-hour conference, we're virtual and we've got to move on. Both Gresham and yourself were long, but they are important parts of the company. So let's move on to financial projections. I think it's important for people to understand that both companies, Gresham Worldwide and Coolisys, are both positioned in different market segments, specifically on the EV side for Coolisys and the power solutions and the power storage business, where Gresham is ramping some new contracts and some medical device contracts. There are 2 different spaces. And when you look at these revenue projections, these are projections from the subsidiary, not the parent. They would, of course, consolidate. I'll let Will talk about this. But Amos, if you can go through this really quickly, so we can move on to the next presenter.

Yes. So this slide shows a conservative approach for growing the business. It's based on maintaining the legacy power business where it's continued to grow, continuous, 7% to 10% year-over-year. And then on top of this, entering into the emerging market with the EV chargers and with the energy storage system, which will be -- really make a big change to the company. I want to mention that for the EV -- for the storage system, we -- for -- we'll be more conservative in our prediction. We stopped the revenue in 2020, generating revenue in 2020, pushed this 1 year into the future, just to be -- not to be overly optimistic. But we will be -- I believe that we'll be -- but we'll be able to generate revenue during this coming year already from the Energy Storage System. So actually, the slide is going to be much differently in reality, which probably revenue will be higher. Also, you can see that the profit is significantly high. And that's one of the -- make a big change. So if we're looking to the profit line, it goes from this year that the we're almost breakeven to about $600,000 to $700,000 next year, over $4 million in 2020 and over $7 million in 2023. And again, that is -- we took a conservative approach when we developed the model.

Amos, we have to move on. I apologize. Let's go to the next slide.

So just in summary, we provide -- are selling technology for power supply and power products. We emphasize on full custom design and value-added solutions. Our product is very high reliable. And the products have all applicable safety standards. We're expanding to emerging market, which is going to be changing the company significantly. And we leverage our 60 years old worldwide leader in power business, digital product to develop product and to provide the advanced power solutions to our market segments.

So Amos, let's talk about things that DPW needs to do for Coolisys Technologies. As everyone knows, Amos is an engineer, and he's a very good engineer. He's made some great products. We recently brought on a consultant in the EV space out of Nevada. I know he's on the call. He has brought us opportunities for [ HOA ] for new construction projects. He's brought us opportunities for -- in the electrical vehicle charging market for basically what you can call commercial semi opportunities. He's been bringing us partnerships that we've been looking at and evaluating. And so I don't want there to be a secret here. Coolisys is a small company relative to the length of time it's been around. Amos does good with a very small team. We are going to need to expand the sales force around EV. One great thing we have is Jonathan Read was effectively one of the fathers and founders of the EV space in his earlier predecessor companies. And we have a lot of knowledge base here to draw from. I've asked Jonathan to help with his legacy knowledge here. We are going to have to build out a sales force. We are going to need partnerships here. You're going to see a lot of activity around the EV space for us because we need to support it. You don't just get to say you have an EV charger and it works. The business model has to be proven out. I think Amos has done a good job working on the engineering side. We have to work hard on the sales side, providing him additional sales force and opportunities, draw the knowledge of people like JR, who originally installed thousands of units. There's a great global demand here. We can't predict how much of that global demand we're going to get, but we do have people that are very interested. My phone has run off the hook in the EV space. I've, of course, pushed those to Amos. But just last night, Amos and I had a call about the sales force side of it. And Amos, I think you would agree that the biggest hindrance here is going to be making sure that we get the right partnerships and we get the right sales force. Did I say that correctly?

This is true. I think that the technology is proven. But we will need to introduce this right into the market.

And obviously, what I'm doing here is giving a forward-looking statement, but I believe this is going to be a big space for us. I'm completely convinced, and so is, I believe, Will and the team, that electrification of vehicles is here to stay. We want to be part of that. It's a natural evolution for Coolisys in the EV space and the energy storage space. They've been at it for a long time. We've got to take all that engineering Amos has and all of his knowledge base and all of his connections and monetize that. In the coming months ahead, we'll be announcing partnerships we think will help us, but it's a work in progress. It's a very big space for us. And with that in mind, Amos, why don't say goodbye to everyone? We're going to move on to the last but not least company in the group.

I would just add one thing, that Amos is a great guys for this. He really has his arms around it, and it's going to be a great success.

I appreciate that, JR. I don't think people realize. If they don't know that what you did in the EV space, and I think that it's great that you're willing to help us, I think, Amos -- I don't know people understand almost has a global footprint in where he manufactures around the world. So it may not just be a U.S. operation by far. I think he really loves to tinker and engineer, and we have to help Amos push sales in a way that allows the company to grow dramatically. And whether it's a revenue share model or a direct sales model, there's no question with electrification. We're going to be part of that, and we appreciate that, JR. Amos, do you want to say anything, parting words before we hang up?

No. Just thank you for your time, and we really look forward to expand this business.

Thank you, Amos. Last but not least, we're going to move on to what we call Ault Alliance. And of course, many of you know, my last name is Ault. When I bought the company, control of it in 2016, the end of '16, was always contemplating that I was going to build a holding company out of it, and this is kind of one of the first steps. We clearly delineate the 2 other businesses run by separate teams. We do share support. Obviously, JR and Amos have worked together for the last year on and off. And so with that in mind, we're going to go through Ault Alliance. We're going to make it very quick because we want to -- we're way over time. But Darren Magot is the CEO of Ault Alliance. Darren, I've known for a long time, 30 years, I think, close. We actually went to college together towards the end of our college years. And I trust him immensely. So Darren, why don't you take over the first few slides here? You're muted, Darren.

Thank you, Todd. Thank you, JR and Amos. I'm sitting here looking at Amos and his presentation, and I'm just thankful we have someone as detailed as him to keep track of all these different chargers, especially in EV. I know most of us struggle with which charger goes with which cellphone. So it's good to have him spearheading that as well as JR and Tim, I know, have done a lot of work creating relationships that are now ready to get gasoline poured on it. It will be successful and fun couple of years. I say that to position Ault Alliance. And we're the third leg in that stool under DPW's holding company model. I think you guys have seen names change and evolve, and I hope that demonstrates our focus on trying to make -- leverage efficiencies really and make these companies work autonomously yet when there's opportunities work together, we take advantage of that. So when I talk about Ault Alliance, we're really a group of people that are empowered by digital. So we have a talented team, and it really is an alliance in the sense that it's a union that's been put together for the mutual benefit of the operating businesses and the investments that we oversee. And so we'll go through those investments, and I know we're long in time here. So I'm going to keep this short, 10 to 15 minutes. But we are leveraging a group of people that have experience and have been around and operating in each of these companies. And so we're leveraging their expertise, and we're focusing them in on near-term opportunities, near term. And I want to say that they were very focused on revenue. So the key is leverage digital and focus on revenue. I'm going to revisit those points as we go through these slides. So you can see that we have a fintech lending division, and we'll go into details on that on the next slide. We have online education and training. We have an e-commerce marketplace and platform, and then there's a number of investments that were involved in that many of the folks on this call are familiar with. So let's go to the next slide and talk about the lending division. The lending division was formed in 2016. So it's been around for a while. It's had a lot of success in putting together loans, both externally and intercompany, about $20 million worth, including a $10 million convertible loan to MTIX, which is Avalanche International, symbol AVLP and prepares both commercial loans, and we're also entertaining or leveraging our license to create relationships beyond what we've done traditionally. So we have a group of folks focused on how can we generate more revenue here, what makes sense. And again, we're looking at the marketplace. So what we do is we take our resources and we focus them in on opportunities in the marketplace. We leverage their strengths and we generate revenue. Let's go to the next slide. I should say it's very rare to have a fintech license. So it's a great opportunity for us to stand out against competition as well.

I would say, Darren, one of the things we should add to that is that license is really a development of future partnerships, too. And so we are looking hard in terms of fintech space of partnering with other mortgage companies because we have a lot of lead generation there. So the unique part of that thing being digital is that there's a small team there, and it can become profitable very quickly. And because we're an all-digital platform, the overhead is obviously controlled in a big way. So we have a lot of hedge funds and other lenders that with partnership for direct lending opportunities, we are awaiting the state to approve a brokerage license for us there. So we have some things we have to work on there. But the experiments we've lent, we had to sell to -- lending to public companies has worked out really, really well. And so I can emphasize that in 2000 -- sort of here and beyond, we expect the lender to continue to contribute profits over time. That's something we're pretty excited about. Sorry about that, Darren.

That's right. No, there's great market opportunity. Todd, thanks for emphasizing that. And then part of what the team has been doing over the last, what, 24 months, really, as I mentioned here in the bullet point, is create content. So we have a strong group that's familiar with how to create content, and now we're leveraging that ability for online education and training. Because of COVID, there's been a shift to that in a dramatic way. And there also is a tendency for those that are post college or post education, traditional education, to go back to online training, online courses to further their career, better understand how to grow their business, how to take their companies public. And so we're putting the team focused around different offerings, and we expect some revenue growth through Q4 and beyond, especially with education and training. So we're going to look for that to ramp-up in 2021, especially. Do you want to add anything there, Todd?

I would say that the great part about this business is we were already working on it pre-COVID. It is now something that we're accelerating. We have developed, I think, a few thousand -- I mean, I don't know, Joe is sitting next to me. So let me ask the question. How many hours do you think we've developed the content so far?

It's a couple of thousand.

A couple thousand. So I think the modernization path there, which people don't know about, the sort of secret that we have in DPW through the alliance business, is that that's really high-margin revenue for us. It's reoccurring. It's evergreened. And for example, YouTube, those checks will only grow over time and the other social platforms we're leveraging are going to generate real margin. And I think that when that gets to scale, that will be really exciting. We'll get a different kind of multiple around that margin. We expect this to be a very big growth category for us in the fourth quarter and beyond. COVID has just emphasized this. We've all went digital, our whole entire team. Ken has been working from home. JR's had to work from home. But it's really worked for us. And it's a strange digital impact that I just did not expect to have happened for us. So I'm super excited that we're well positioned here. I think that, that will be really incremental revenue. One of our goals, and I want to emphasize this is just a goal, but we want the business to cover our entire corporate overhead. We are hoping in a couple of years, we can generate enough revenue here and enough margin where our entire holding company revenue is covered, and we cover all of our overhead there. And then ultimately, the other subsidiaries we have are where we ramp our profit. But this is something that I'm pretty excited about. We're doing -- we're behind the scenes here. We're doing it, but we already have thousands of hours of content, and it's growing. I think we have grown in subscribers and other things by the thousands. And we don't have anything to report yet, but when we do, it would be substantial.

It really is one of those things where you do the work and then you reap the benefits. And that is sort of the spirit I mentioned in revenue, but these are high-revenue opportunities. So when they do come together, there's typically different multiple sources of revenue that are generated, and then they're high-margin revenue. So let's move to the next slide, where that's further emphasized.

It's funny. Darren, I was thinking earlier about what I would say about this. And with one of our partners through TikTok, I never thought that TikTok would be something that would become so important to what we're doing here. But some of our -- I guess we call them some of the talent on our network coming from TikTok. We ultimately think the TikTok platform, as long as it survives, will ultimately end up helping drive some of that e-commerce growth. And it's an interesting dynamic happening with all that's going on. So...

It really is. And we're a small team. So we're forced to work smarter and leverage people that have experience in a space like TikTok to drive traffic or Instagram. And so we're doing that whenever possible. E-commerce, because of the change in retail, especially this year, is such a great opportunity. Again, high margin. We leverage channel partners. So people that have contacts with luxury brands. And we bring those to our network, which we've already created. And so some people might say, how do you shift and do an e-commerce business, especially fashion business? But as you mentioned, we've known each other for 30 years, and the team has been around for a long time and has had exposure in a number of different areas with our investments, building platforms, even with our investment within MTIX. You get involved with the fashion industry. We make contacts. And so we're leveraging those opportunities to, again, work smarter. So...

And this business, people need to know, is live right now. Even though we -- it's powered by Shopify. And that truly, ultimately, we think, will end up being a partnership with them because they'll run the back end like they do for Kylie Jenner and others. You didn't draw on too long, [ Jerry ], you did great, buddy. Anyways, this -- sorry, a little informal. This platform is up and live. We expect to have about 1,000 SKUs by the end of October, and we already know we have those 1,000 SKUS. So I can really say we'll have about 1,000 SKUs by the end of October. We don't do the delivery here. We do not handle the fulfillment. It is not a -- it is not the traditional drop shipping operation that people think. This is a partnership relationship where someone comes on. We've only taken on one channel partner because we want to grow carefully, I think, Darren would say.

We have to manage that growth, right.

Yes, manage that growth. But this is a great business for us because we are able -- we started on it 1.5 years ago, and it just went live recently. And we think that this is going to add a lot of potential revenue, a lot of margin. We operate really as a technology margin where we provide the platform for sellers, especially sellers that don't necessarily want to be done on Amazon and give up so much control. But this is a story to be told for the future.

Yes. And if you look at the marketplace, it's overwhelming, $525 billion market. And at first, you might think, okay, so there's a lot of opportunity, but there really is a way to do it correctly to make your footprint in this space. And so we're taking our time to do it right, to engage with the right partners, to market correctly and leverage some tools that we believe we have more experience than others in, specifically social media and influencer promotions. And so we'll report more throughout Q4 and into the new year. Let's move to the next slide, please.

That's a sleeper. This business is a sleeper. I predict it's a sleeper for the business. People aren't paying attention to it. I think this is something that's a sleeper for DPW and ends up being a great investment long term. That's my prediction.

Great. And the last category is an area we focus a lot on. We're proud of the investments we've made over the years. Some categories that are, again, leading-edge categories with biotech and Alzamend Neuro, I encourage you to read as much as you can about that. There's some near-term opportunities developing there that we'll report on. We get into sandstone investments within the health care space. Materials science, MTIX is just -- is looking for -- as Will mentioned at the beginning of the conference, is positioned to really take off with the right funding. And so we're working to direct funding around their efforts. As well as real estate, we've gotten involved with the 456 Lux Hotel. They've built a really good foundation there, and it's starting to emerge in that city. It takes a lot of work. They had to cut through a lot of red tape. But we're going to see that investment come together as they move towards finishing up the hotel at the end of -- I believe, end of 2021, early 2022 because of the delay.

I think the problem there, Darren, is people think hotels and COVID is pretty bad. And it is. But we think once this is over and there's a vaccine, the ones that survive will thrive. This will open up sometime in '22, and we'll be on the back end of this whole COVID mess. And hopefully, the hotel will benefit. It is a beautiful hotel.

Yes. And really, that's the beauty of DPW Holdings, is the diversification and the way we are able to position ourselves to respond to changes. Let's move to the last slide in the interest of time and talk a little bit about real estate here. I'm jumping to the second bullet point because to Todd's point, there are some areas that have been impacted. You heard us mention the data center where we are working with digital farms. And commercial real estate has taken a hit when you look at office space, but we've seen a dramatic increase in the need for warehouse space because of the online e-commerce space and 5G and the need for access to power. So we are still pursuing very actively, and we might be able to announce something soon regarding the data center with access to large power. So I don't think that's gone away. It's like fashion. Todd mentioned he's excited about the revenue that he sees developing there, been growing. I hinted to the fact that lending is going to stretch beyond what we've done in the past traditionally and reach out to referral services and more consumer-focused. And then this training and licensing, I think, is a sleeper as well. So these are the key areas of future growth. We'll be leading with those as we move forward to the next conferences. And that really summarizes it for now.

Darren, you and I get a lot of question about bitcoin. And that caused us a lot of pain, as you know, caused us pain with bank accounts, being a bitcoin miner. Obviously, we still have the miners. They're not efficient like they used to be. But we do believe that we learned from Bitcoin that data centers matter. And so I think everyone needs to pay attention to the fact and be looking for our entrance into the data center space. I think Darren has identified a wonderful opportunity there. And if we're able to pull that off, we will be able to do high-density compute, and we will have a lot of power. Darren, maybe you could talk about the potential power we would have, if we're able to conclude that transaction.

Sure. There's very few facilities and even data centers that have as much power that we'll have access to at this site. And that bodes well for traditional data centers, which are overwhelmed right now because of all the cloud storage needs, especially with the Zoom calls that are all being recorded and the number of photos and videos that are being uploaded. So data center is really a growing space. I mentioned the warehouse space. So it's a mixed use property. And it's already wired for 29 megawatts of power, and it has an electrical plan to go up to as much as 300 megawatts, which would be incredibly huge. It's located in an area that is very attractive to many companies for a number of reasons. And so I really hope that we can bring that together and report back in more detail on that.

Yes. There's no assurance that, that deal will get done, but we're going to work hard to try to make that happen. We've been working on it for a while. But that -- we still care about -- I mean I think a migration to data for us has been pretty important. So...

5G as well.

Yes. Yes. So we -- obviously, we're trying to work on -- the third leg of the company is really a digital strategy, and we're really focused on that. I think we have a great team that's worked at figuring this out over the last couple of years. So with that in mind, Darren, do you want to have any closing comments here?

No. I think we should move to Q&A and wrap it up. I think we're a little over 2 hours. So thank you, Todd.

Appreciate that. I'd like to bring Ken on and Will, so we can wrap up the call. Here's sort of the key outlook, sort of the wrap-up here. Obviously, 3 areas of defense, which we talked about defense, power solutions, lending and digital. Will, can you talk about maybe how you want to wrap this up in terms of this slide?

Sure, Todd. Obviously, I think the focus on the businesses has already been covered sufficiently between JR, Tim, Amos and Darren. Jr and Tim as well as Amos provided a little bit of update on where they expect revenue projections to go over the next 2 or 3 years. I don't think we need to dwell on that one anymore. Obviously, we believe the defense business is going to be a key driver, both through organic growth and accretive acquisitions. Is the EV charger and the ESS market going to be bigger? I don't know. I guess we'll see. COVID issues, again, recapping. We did discontinue restaurant operations. We believe that was both a positive and a negative. Obviously, nobody likes to write off businesses, but it does focus our attention on our real key growth opportunities. The restaurant business is competitive. It's a lower-margin business. Real growth for this company, the growth that we envisioned when you took control or bought a controlling stake back in 2016, wasn't in your slower-margin business. It really was in the opportunities we saw, whether it was the MTIX machines, the MLSE machines or whether it was in the defense business. And that's what we're focusing on, revenue growth and profitability. And we've got a ways to go. But I think with the recent filing that is out there that we filed last week with the at-the-market offering, I think it gives us growth capital. It gives us acquisition capital, and it's going to put us in a really strong position to finish the cleanup of the company's balance sheet, help eliminate the remaining debt obligations that we want to and grow our top line. So I see a lot of positives over the next 12 months for this company. Todd?

Me, too. So I want to introduce Ken Cragun. And Ken Cragun was the CFO of $1 billion NASDAQ company at one point and came from Deloitte. He recently became our CFO. And Ken, I thought maybe you can just introduce yourself and talk about your takeover of the financials, working with Will and maybe what you see on the horizon.

Yes. Yes. I've been the company 2 years now, and we've been through a lot over the last 2 years. But I'm encouraged by the foundation we have here. We have 2 businesses in the defense and power that have been around for a long time. They have great customers. It's a good foundation of business with long-term contracts and solid backlog. So that's exciting. And then I'm particularly intrigued by the opportunities of digital. I was CFO at Local.com, which was $100 million NASDAQ company that focus on digital marketing and driving traffic and monetizing that traffic. So we -- and David Katzoff was there with me as well. So we do have some members of the leadership team that have done digital at scale, and so we can be supportive of that. As Will mentioned, we filed the ATM, which brings in -- which we have announced could be up to approximately $9 million, and that is going to help us build a sales team for the EV and power solutions, and it's going to help us provide the working capital that the defense business needs to execute on the backlog. And so I think we do have an opportunity to meet our goals. Our stated goals are to grow top line and improve the bottom line. And I feel like we're well positioned to execute on those goals and make great progress.

Appreciate it, Ken. All right, guys, I think that that's going to be the conclusion here. I do want to make 1 or 2 comments about the team. Some of the team, as you guys know, Ault & Company is the largest single shareholder of DPW. We continue to invest in the company. I have -- I nor myself nor my wife or any of my companies have ever sold a share of DPW during the run-up of 2017, '18, not a single share. I continue to reinvest, got shareholder approval to make an investment, committed to making future investments. So Ault & Company continues to remain a large shareholder, the single largest shareholder of the company. And we appreciate everyone coming to the second Investor Day. I wish it was in person. I liked in person last year, but this was fun. Thanks to JR and Tim, the whole team. Really want to thank all the employees of DPW for hanging in there, which was a precarious first and partial second quarter, I have to admit. There was a time where I wondered what was going to happen. It felt like the world was coming to an end. But we've come through the other side and things are much wonderful. Special thanks to one of our lenders that helped us during the COVID crisis, who's really become a great investor of ours and supporter of ours, and that's Esousa capital -- Esousa Holdings. And we are really pleased with the progress. We're truly a holding company now. We truly have CEOs in all divisions and a great working shared staff at the parent company. And we welcome Ken as the CFO; David Katzoff; Henry Nisser, who joined us from our previous law firm. We're really pleased with the team we have. It really seems to be coming together. I hope everyone has a good day and appreciate the time. Sorry, we went over. Take care, everybody.