Locate Technologies Limited ($LOC)

Good morning, and welcome to the Locate Technologies Q3 FY '26 Results and Business Update Webinar. I'm Georgia Katos from the Locate Technologies team. To those joining us for the first time, a particularly warm welcome. And to our returning investors, thank you for your continued support. I'm delighted to be joined by Steve Orenstein, CEO and Founder of Locate Technologies, who will walk you through our Q3 FY '26 results and share an update on the group's businesses. A Q&A session will follow the presentation. [Operator Instructions] With that, I'll hand over to Steve.

Thanks, Georgia, and good morning, everyone, and thank you for joining today's webinar. I'm really pleased to give everyone an update on what's been happening over the quarter. So I'll just share my screen. Give me a moment. Excellent. This quarter has been a really interesting quarter. When I reflect on -- over the last 20 years, I've been in technology and building different technology businesses. From a technology point of view, this has probably been one of the most interesting quarters in terms of the amount of change that's actually been happening in terms of innovation in software and AI in particular. The change that's occurring in AI is going to affect many, many different companies across the world. And I'm extremely excited to see the impact this is going to have on our business into the future. What I have seen over this quarter is this is already having a material impact on our business in the way in which we build products for our customers and solutions for our customers. And it's really exciting to see what we've been able to deliver. And over this presentation, I'll walk you through some of those things that have occurred and what we look forward to in the future. So our strategy is -- there's 2 key strategies as part of our business. One is Locate2u, building an operating system for last mile logistics. We're very focused on delivering this product to our customers, both in Australia and across the world. And we continue to keep on delivering new functionality inside of Locate2u. And in this presentation, I'll talk you through some of those things that we've delivered over this quarter. Our Bitcoin treasury policy remains the same. We want to acquire more Bitcoin onto our balance sheet, and we'll look to do this into the future, particularly as we become cash flow positive inside of our core operating business. At a glance, FY '26 was a good quarter. We had record revenue -- group revenue of $1.8 million. All of these numbers are in New Zealand dollars. Locate2u revenue was up 42% from year-on-year. So it's great to see the work that we've been putting into Locate2u and seeing that being rewarded in the numbers that we see here today. Reported EBITDA was $167,000. Cash at bank was about $1.1 million, and Bitcoin holdings remained steady at 12.3 Bitcoin. And the value of that is seen at $1.63 million. Our Bitcoin holdings valuation and everything we're holding on that is available on our website. You'll see our Bitcoin option there, and you can view the live update on that on a per minute basis. Some of the key highlights for this quarter is group reported EBITDA turned positive. It was really great to see that this actually occurred. And even occurred, we were still incurring some of the costs related to the NZX transaction and the move from the ASX to the NZX. And I'll walk you through some of those details of those numbers shortly. Locate2u crossed $1 million in quarterly revenue for the second consecutive quarter. And so it's great to see that in the Locate2u business, the majority of that revenue is recurring. The reoccurring revenue comes in every single month as we start acquiring more and more customers, and it's great to see that actually continuing to happen. Monthly profitability continued to build throughout the quarter. What you saw is in January was a negative $7,000 went to positive $66 and positive $108 in March. And so this shows you as the Locate2u business starts to scale, but also as we started to exit out those NZX transition costs, then the business starts to become more profitable at an EBITDA level. Our Bitcoin treasury position maintained. We weren't able to add any Bitcoin to our balance sheet at this point in time. We're very keen to do this, but we want to do this in a very carefully planned way, particularly as we move towards being cash flow positive. We're really focused on getting to cash flow positive. And as we start to do that, this is going to give us more options in being able to acquire more Bitcoin into the future. As I mentioned, this graph sort of highlights and shows you the quarterly revenue and how that compares to the previous calendar years. And so this quarter, for this period was our highest quarter that we've had since we've been reporting these numbers. And as you can see here, the monthly revenue -- now one of the things that does happen in January is that we do see a decrease in volume, particularly in the Zoom2u business. This affects, obviously, our group overall revenue. January is a very quiet period for people that are doing deliveries. However, we did see that start to increase as the month went on. And you started to see in January, very little new customers come on board from a Locate2u point of view, but as that starts to increase and as we start to win more deals and as more customers start to get more active in Locate2u, those numbers start to increase as well. And you can see that here in the Locate2u numbers. So up 42% from the prior corresponding period. So it's great to see all the work that we've been doing from a Locate2u point of view, particularly in the product functionality, but also the winning and onboarding of new customers. We've had some good -- over the last year, we've had a number of large customers that have come on board, and we're seeing the adoption of the product now going from where it was just in a trial period to now being fully used across their business. And one customer, they now have over 300 drivers using Locate2u, managing across all states across the country. Locate -- Zoom2u continue to -- continued at a flat or declining rate. January, we did see a higher decline than what we did from the previous corresponding period. This is because in that first -- in that previous corresponding period, we had a larger customer that gave us some more volume over that period. That same volume didn't occur in this particular January month. And what you're seeing now is EBITDA profitability is coming through. And on a normalized basis, it was 275,000. That's removing the NZX transaction costs. And all those costs that we've now incurred have now been completed, and we won't be seeing any further NZX transaction costs moving forward. So it's great to see that we're now behind that. And so these numbers will start to improve as we move forward. For the first time, what I have included in this presentation is a detailed view of what our P&L looks like. This is a view of the P&L that I spend a lot of time with. And in fact, the view that I look at it is even more detail than this. But at a high level, I think this gives investors some really good insights in terms of the business, where our revenue is coming from, but also where we're spending our money. The things that I just wanted to highlight on this screen is where I look at is the management operating P&L. This number is, in my mind, the most important number because this shows where we are from a cash flow positive point of view and looking at sort of from an actual cash position, cash P&L, what does this actually look like. We have our interest facility that we pay on a quarterly basis. However, this has been put across over on a month-to-month basis so we can see what this actually looks like. And pleasingly, what we saw in March is that we were at negative 11,000. And so we're almost getting close to that point to be in positive territory. I think March is a really good example of how the business is actually tracking and the cost that we should be incurring in the business in the future. We've been really looking at every single dollar that we spend inside of the business and looking for ways to optimize our cost base. There are still opportunities to continue to optimize. I think our staff headcount is about right where it needs to be. There may be some small changes that we may make there, but I think it's right for where we're looking to in the future. However, there are areas, particularly around our hosting costs associated with the running of Locate2u and where we see that there can be some optimization and some other areas, there are variable costs associated with the business. When you start building a software company, you often look at just getting things running and getting things going and you start adopting different suppliers to help with different parts of the business. Now as we start to get to scale, we start looking at sort of those different costs inside of the business, and we start looking at how best that we can optimize those costs. And so when I look at these numbers here, I feel comfortable and confident that as we move forward, we move to close to cash flow positive and then cash flow positive into the future. So as you've seen in the numbers earlier, Locate2u had a record quarterly -- quarter, up 42%. There's a lot of work being done right now inside of Locate2u, in particular around the work that we're doing with AI. AI has completely changed the way in which we develop code inside of our business. It's changed the way in which we interact with customers during a sales process. And it's helping us in a really positive way. And I'll talk more about that shortly. And so you can see this. Obviously, the revenue has been consistently growing on a quarterly basis. Zoom2u is very much now in a state of where it's pretty mature. It's steady and where it's actually going. And there's some -- definitely some areas where we think we can optimize and improve and see growth actually continuing to happen inside of Zoom2u. However, our focus is very much on Locate2u. And it's a reminder that Locate2u exists because of all the work that we've done inside of Zoom2u. A lot of the learnings that we had in how Zoom2u actually operates, we've actually been able to implement that into Locate2u, and it's been a very valuable tool in being able to see our business grow. But our focus is on seeing Locate2u scale and grow both in Australia but also across the world. We'll continue to maintain Zoom2u, continue to run it. We'll continue to look for areas that we can optimize. And in fact, the use of AI has allowed us to actually deploy more resources into Zoom2u to see improvements inside of the booking platforms, but also in how customers experience the use of Zoom2u. Our cash position. So we ended the quarter with $1.1 million in cash. Our total liquid position is $2.75 million, including the value of our Bitcoin position. Now we don't expect to ever have to sell our Bitcoin position. This is a long-term holding and we expect volatility in terms of the Bitcoin price, but we don't expect to ever liquidate that position. So we think we've got sufficient capital as we move forward in the months and quarters ahead. As I mentioned earlier, we do hold 12.3 Bitcoin on our balance sheet, we look to increase that as it makes sense for the business and as the Board determines it makes sense for us to do that. This is particularly going to be around the business getting to cash flow positive. And so very much -- we've been very focused over this last quarter and looking at our costs, as I mentioned, but also looking at how do we grow revenue inside of the business faster than what we are today to see that we can get to a state of positive cash flow. Just on Monday this week, we also announced in the market that we will do an on-market share buyback. We've got a facility available that allows us to acquire up to $500,000 worth of stock. And we'll do this from existing cash reserves when it makes sense for the business. We don't believe that the current share price reflects what the value of the business and the assets growth prospects where it is today. And we think that the liquidity inside of the stock today is not allowing us to actually realize the real value of where Locate2u is. And so that means the company needs to buy shares on market to assist with liquidity, then we will look to do that. Once we acquire those shares, those shares will be canceled. And so this will be valuable to all shareholders in us doing that. We can -- we will only be able to trade the shares when we're inside of a trading window. And so that will be determined as per our share trading -- securities trading policy framework that we have in place with the Board. So as I mentioned, this quarter has been a very interesting quarter. A lot of things have happened. And you've seen, just in general, I guess, the market is sort of looking at SaaS products and thinking that AI is killing SaaS products. I think the -- and this is seen in many company share prices being devalued. I think investors that are seeing this probably haven't actually used AI. They probably haven't built software and not realizing actually how positive AI is going to actually help the SaaS businesses. And there's a couple of points I'd like to sort of highlight. One, every single company that's building software today and whether it's internal software that they've built over the years ahead or whether you're actually a SaaS-based company, has an enormous backlog of work that they're wanting to get done, but they didn't have the resources to get done. We've had numerous ideas in terms of things that we wanted to build inside of our software over the years. But we only had a limited number of development resources that we could apply to building that. This now changes. AI allows us to actually deploy multiple agents across multiple of our developers to increase the work output from our developers to deliver that functionality to our customers, and we're seeing this happen in real life. However, you still need software developers inside of your business. Today, AI is not something that you can just go in and say, "Build me this piece of software or replicate this piece of software," and expect to see a working model of that product. That simply is not true. I've seen that in my own instance. I'm not a software developer. However, I'm very tech savvy. I understand the workings of software extremely well. And even for myself in going through and building products, I still need a developer to help. There's areas where I can get to maybe 90% of the code being built, but that last 10% is extremely important. The other thing that I find is extremely valuable is the experience that we've had in building software over the last 20 years and for myself personally over that period. knowing how to take a problem and simplify that problem into what the solution is, is extremely valuable in building world-class software. Often customers come to us saying they've got this problem, and this is how they would like to solve that problem. And generally, that solution is not actually in the best interest of the company. Generally, there's a better way to do that. And it's our expertise that allows them to actually get a really great piece of software that's going to help their business. I see AI as being extremely valuable for SaaS businesses. I see that allowing SaaS companies to become more profitable, be able to do more with a lot less developers, a lot less costs associated and allowing us to actually be able to customize product for customers in a very particular way for their business. We had some real-life examples where we went in and did demonstrations for a customer where they're asking for a particular functionality that didn't exist inside of our product. Within a matter of days or in some instances, hours, we're able to work with our development team to actually build functionality that would allow them to actually win and come on board as a customer. So this is -- I think is a really powerful tool that's going to be available for our business, but also other businesses as well. We still need development resources to assist us in growing this. The other important thing to note is security is going to become a very important part of building product in the future. It's going to become easier and easier to have security breaches, and it's going to be really important, having really skilled developers on your team to be able to identify when AI has actually built something that has security holes. Also, there is across the world an enormous amount of technical debt that sits inside companies that have built software over the years that needs to be addressed. This is going to become extremely important as you have legacy pieces of software in the market that does have security holes that need to be improved and patched. AI is going to allow you to actually do this. But the requirement for developers to assist companies and being able to deploy the software is going to be, I think, extremely valuable. And so I see this as being a really powerful thing for any SaaS business and particularly in what we're building inside of Locate2u. AI is now across all of our operations inside of our business, in particular, engineering in what we're actually building, where we've seen a dramatic increase in the amount of code that developers are actually being able to ship and hours that the developers have been able to save. Where developers are spending their time today, it's not so much in doing the detail of writing the individual lines of code. The code is being generated via AI, but it's the direction of where you're sending the AI to actually build certain parts of the system and the developer being able to manage multiple projects at one time. Historically, a developer, you would give them a task, they wouldn't want you to talk to them during that period. They would just want to focus. They want to look at that piece of code, and they want to be in that code and knowing exactly how everything actually works. In their head, they would be having the entire code base that they're working on in memory inside of their head. Today, developers don't need to do that. They are able to prompt to actually direct the AI to actually go and do that and allow the AI to actually build the code and then being able to review it. This is extremely powerful because it means a developer can spend a lot more time in designing and architecturing functionality and then also deploying that functionality to our customers. It means that the smaller teams can actually output significantly more software than what they could before. Small companies are going to be able to compete directly against companies that had much larger teams of software developers, and I think this is a really powerful thing for our business today is that we're going to be able to compete much more than what we were able to previously, particularly with the resources that we have. We don't see a need for us to increase or scale the number of resources that we have. We think that we can grow this business from where it is today with the resources that we have. And this is something entirely led from AI. To give you a sense of some of the projects that we've released over this quarter or in the final stages of releasing. In Zoom2u, in the Zoom2u business, which very much we've built this platform inside of Zoom2u. We haven't really touched it over the last few years. Our development focus, our development resources have been completely focused on what we're building inside of Locate2u. However, we've now been able to use AI to actually go back and look at some of those things inside of Zoom2u that we wanted to improve. We're in the final stages of releasing an interstate portal where we can offer interstate deliveries to our customers. We do that today. The experience is okay. It's not amazing. And with this new portal, it allows you to actually have a same-day delivery between different capital cities in Australia, but also extending that to other capital cities across the Australian market. This is a premium service. And along with that, you've got a premium booking experience. It allows you to track the flight as it's moving between locations. And I think it's going to be really positive for the Zoom2u business. One of the things that we've also released is an address cleaning service. This allows us to take a series of addresses and look at where companies have received orders where customers have entered in the wrong address information. That might be where a phone number has been entered into an address. And surprisingly, we see this happen all the time. In some instances, in Zoom2u, this has stopped us from being able to do deliveries for high-volume customers, and we've now been able to use the service to actually clean those addresses and get that out to market. We've always had a routing engine inside of Locate2u and also in Zoom2u. And that routing engine will continue to keep on operating into the future. However, routing is very much an algorithm-based solution. And I think that's going to continue into the future. I don't think that's necessarily going to change. But there are rules that we want to be able to place in front of the routing engine that says, "This is how we want certain things to actually be routed." And using AI has been very useful in being able to do this. We've had the requirements of a customer that has hundreds of drivers across the country, and they do installation work. And for those installations, they require a series of rules that allow the drivers to actually complete those deliveries. In some instances, they're installing something that requires 2 installers to arrive. Those 2 installers need to arrive at the exact same time and one installer needs to have one skill and another installer needs to have another skill. And the matching of those 2 drivers together typically has taken this business an entire day to do optimization across every single state across the country. We've been able to work with them in building a rules-based engine using AI that moves this step from taking an entire day down to a number of minutes. And this is going to be a work in progress for this business, but it's going to have a material impact in the way in which they actually do their routing. It's going to improve their routing. It's also going to save them a substantial amount of time. There's a number of other projects that I won't go into too much detail, but there's a lot of development and more development in this quarter than I've seen in previous quarters. This has all been possible because of the work that we're doing inside of AI. So as we think about sort of the strategic priorities as we move forward, one, scaling up Locate2u is obviously our #1 focus and continuing to keep on doing that. And two, we want to start -- we're using AI inside of our business today. We want to start enabling the AI available to our customers. If you think about our customers, they have -- generally have a customer service team that's doing a lot of functions inside of that business. AI is going to be able to help those customers. It's going to be able to do things like answer phone calls, call drivers, organize bookings automatically through an AI agent. And there's a number of things that we're going to be able to deliver to our customers and enable them in using AI inside of their business. We do want to keep looking at being able to accumulate Bitcoin on our balance sheet, and we'll do that as it makes sense for the business. We want to be careful in making sure that we get to cash flow positive before we start being able to do that. And we also want to make sure that we're very disciplined in terms of our costs. You'll see that as we move through the quarter, we got closer and closer to being in a position where at a cash basis on our P&L, we will be cash positive, and we wanted to maintain that. And so we do have a process on a monthly basis where we do look through our costs. In fact, we've been able to build some initiatives that using AI that allows us to better measure some of our costs throughout the month. Some costs inside of our business like hosting are variable costs. They move based on usage inside of our system and being able to measure that on a daily basis is extremely valuable for our business. To see when things have changed that we can actually look to make sure those costs are actually reflective of what we want to actually spend rather than getting a bill shock at the end of the month. So I'll now open up to questions. I do thank investors for their support over this quarter and look forward to answering some questions now.

Thanks, Steve. First question is NZX announcements relating to new business and positive news seem rare. Why is this and what can we do to generate new investing interest and more trading volume?

Yes. So there's a couple of points I'll probably add on that. Over this quarter, we, as a business, has just been -- this has probably been the most amount of change that our business has actually seen and as December went -- beginning of December, there was a new model released by Claude that was pretty good. And it now enables developers to actually start using Claude to actually do development. Before that, the AI models were okay but not amazing and you couldn't really use them as effectively as what you can today. And so in January -- I spent the entire January looking at what we're doing from a business and looking at our entire development team and realized that the entire development team needed to change the way in which they were actually operating. And so all of our effort and focus has been looking at how do we adopt AI. I forgot about -- not forgot about, but I purposely transitioned my mind away from anything else other than rethinking about how our business actually operates and what does the future look like for our business using AI, and so we spent this last quarter really focused on that and seeing how we can do this to actually win more customers into the business. We do plan to update the market every quarter. We will, as it makes sense, provide further updates. And we do think that it makes sense for us to do ongoing updates to investors. And so we'll look to improve that in the future. However, this has been an enormous amount of change that's occurred inside of our business. Every single role in our business has changed because of AI. And I think we're early adopters of this. I think some companies are still using AI, but nowhere -- there's very few companies that are using AI to the way in which we're using it inside of our business. Including our accounts team, customer service, every aspect is using AI in a way that's going to allow us to actually grow into the future. And my focus is really -- when I think about this business, I think about it not for this quarter, not for this month, I think about it for the next 20 years and what we're building. And I think what we're building today is going to put us in a good state into the future. And I'll touch on liquidity of the stock. It's -- the liquidity of our stock is very low, and I do recognize that, and I do think that, that is a problem. And it is more difficult than what I expected for particularly Australian investors to invest in New Zealand. And so it's something we've had active discussions with the NZX and something that we want to look at. We -- the transition to New Zealand was always planned as being the first market that we will list in. We do plan to think about and look at other locations to list in into the future. And so that is something that is actively being discussed, and we'll update the market as that becomes something that happens in the future.

Thanks, Steve. This kind of leads into this question. So with liquidity being low on the NZX, how do you expect to raise capital?

At this point, I don't expect that the company needs to raise capital. And so we see that the current share price has been very much temporary. As we announced, we do have a share buyback in place and that the company will look to activate that share buyback in the future.

Can you give us an indication of percentage of Locate2u revenue that comes from overseas customers? Do you have any business development resources targeting overseas and which countries are we operating in?

Yes. So as a percentage, I don't know the exact number. I would say today, a large chunk of our revenue is from the Australian market. However, we do have customers obviously, in New Zealand, throughout the U.S., Canada, throughout Europe, the U.K., even in other countries like Singapore, et cetera. So we definitely have a worldwide customer base. We have a small number of resources that are in overseas markets. And so this is something that we will definitely look to increase and grow more of and so -- and I think as we start releasing more functionality into our product, that's definitely going to help us in acquiring more customers in a global sense.

Reported EBITDA stepped up each month for the quarter. Is that monthly trajectory, a fair indication of the run rate heading into Q4?

Yes. So without giving a forecast, what you saw in January, February and March, a couple of things you saw. One is in January, we still experienced some of our costs from the transition to the NZX. Those are now behind us, and we don't expect anything further to happen in that instance. January is always a quiet month, particularly in logistics, particularly in Zoom2u and in terms of adding new customers, you don't really see any new customers in Locate2u being added because everyone's in a holiday mode generally. There may be a lot more active discussions talking about things happening in the future. We generally don't win new deals in January. Now as we move forward, we're very active. And in fact, we definitely have seen the increase in inquiries over this quarter, particularly as companies are looking at ways to reduce costs. The fuel increases have been significant. And so route optimization is a really important thing for your business. If you can optimize what's happening, that's going to be really, really important. And so yes, we do think that this is -- while fuel prices have increased, this is going to drive more urgency and actually being able to make improvements in their businesses.

Speaking of the fuel crisis, how has the crisis affected Zoom2u business and Locate2u customers?

Yes. So optimization is critical for every business that now has a fleet of drivers. And so if you're not running optimization for your business, then you're leaving money on the table and your cost to deliver to your customers is going to be significantly more than what you could be if you're running route optimization. And the conversations that we're having with customers is exactly around this. And so it's something that, yes, we are talking to, and we think this is -- while difficult for customers, I think this is actually a positive thing for our business in terms of being able to see increased demand in moving across to using Locate2u.

With Q3 being the first positive reported EBITDA quarter at a group level, what does crossing that line mean for how you run the business from here?

Look, my focus is we continue to get push through, not just to EBITDA positive, but also to cash flow positive and really see this business continuing to grow into the future. I'm very focused on making sure that we control our costs very tightly, and we reduce and optimize our cost base and using AI to do that in any way that we possibly can. And so I think this is just -- we're just at the beginning, and I think we're in a really exciting time for the business right now.

As Locate2u becomes a larger share of the mix, what does that do to group gross margin over time?

Yes. So our software business, as we start to grow and increase, where there isn't significant costs that are associated with growing the Locate2u business. Our costs include this fixed cost in running the business, which we pay on a monthly basis. Those general costs of do we need more developers, any more headcount? I don't think we need any more headcount inside of our business. I think if we're using AI efficiently and AI is getting better every single month, then we have no need to actually continue to scale or grow our headcount. And so as revenue starts to grow, we start to become more profitable into the future. And so yes, just I think maintaining that growth inside of Locate2u is going to be positive. Our costs in running Locate2u, you have a base cost for the hosting. That hosting requires a set of, like base-level cost associated, and it's not like this massive step up as you start seeing more customers. We do see some opportunity to reduce our hosting bill. We do today spend a significant amount of money on hosting somewhere in the region of across both businesses, roughly about $40,000 a month. And we see that there's definitely an opportunity to reduce that. It requires development work and the development work has always been difficult to do because it was where do you spend your money? Do you spend your money on reducing costs or do you spend your money on actually increasing revenue, and we've always chosen to increase revenue. However, with AI resources now, we can look at both of those things. And so that's going to be something that we look to really manage what our hosting bill looks like using different types of hosting infrastructure. And we've got a number of projects already active on that space at the moment.

You mentioned ideas that used to sit on the backlog are now landing in the live product. Is there a recent example of a feature that's shipped because of AI that wouldn't have made it through previously?

Look, there's a lot of things that we've been able to do because of AI in development. And what it's meaning is that what's on our backlog, we can get through much faster. You see a recent example where I'll give 2 examples where I was actually involved in a sales demonstration with the customer. And they sent me an e-mail and 2 days later, I was expected to meet with this customer to do a live demonstration of the product with our team. And they asked did we have this particular functionality? Now at the time when they sent this e-mail, we didn't have this functionality. This didn't exist inside of our software. Historically, that would have taken us a reasonable amount of time, probably 4 to 6 weeks to deliver that. Within a day, we were able to release that functionality into the system. And when I went to that demonstration, we're able to show them that functionality. That was a relatively small feature that would have delayed the sales process and the sales cycle for that company and created a roadblock. And now using AI, we're able to get through that roadblock and actually deliver something to that customer. In another instance, inside of Zoom2u, we saw where the address cleaning AI project came about was where we went to a customer who has already been giving us a decent amount of volume into the Zoom2u business. And they had a very poor number of -- a large number of addresses that were sending to us that were being rejected. These addresses had information like phone numbers in the street address, all those things that essentially couldn't be accepted by our system. Our system takes an address and geocodes it, which allows it to then go through a routing engine. This is an extremely important part. If you can't geocode, where you're taking that address into essentially converting it into GPS coordinate, it's impossible for a routing engine to actually work. And so that was stopping giving us these deliveries because the system didn't geocode them. And this was actually 20% of their volume, so it's quite a significant number. We've been able to release this module. It allows you to actually clean the addresses. And so that we're actually able to see that we're actually able to increase the volume that we're getting from this customer because of that one bit of functionality. And so this is something that we wouldn't have been able to spend the time and resources on previously. It had some revenue impact but not huge and -- but it's definitely important that we can do this because we solve for this customer and many other customers into the future.

What does AI being in the build loop, as you suggested, mean day-to-day for an engineer at Locate2u?

Look, an engineer right now is going through an enormous amount of change. Historically, as I mentioned earlier, like you would give them 1 project, they work on that 1 project and they would remain very focused on that. Today, they're working on multiple projects. And so they're having to switch mindset from one project to another project to another project because the actual coding is being done by the agent and they're having to just tell the agent where they need to actually do the development. And so -- but then that means that we're able to release more things. Historically, we would only release probably once a week. Today, we're releasing daily. And sometimes, in some instances multiple times a day. Now that's been possible because of 2 things. One is we've been able to rearchitect our software platform, to be able to break it up into components. Historically, when we did a release, we would release the entire application all at once, it will require a substantial amount of testing and then you'll be able to do this release and every bit of code will be touched during this update. Now we've actually broken it into smaller components. And so you can actually do these releases where every single feature is part of a small release. There's no downtime for our customers when this occurs. And this means that we can take from an idea to release to actually customers using that in a very short period of time. And so this is extremely powerful, being able to see this iteration of this product in the future. Our vision in the future will be a customer can actually come to us and talk to an AI agent that says, "Hey, I really want the software to be able to do XYZ," and the AI agent will be able to look at this information and look at our code base and then work with the product team to be able to then come up with what the solution is going to be and the solution then be deployed in a matter of -- in a very short period of time. And so I don't think we're far away from being able to see this being able to happen in the future.

When Locate2u customers trialing AI-led route optimization, what are you learning from that trial? And when might it become generally available?

We're in the final stages of that trial right now, and we'll now make this available to other customers as and when those requirements become available. This is something that's -- our standard route optimization engine works perfectly for certain types of customers. But where a customer has complex route optimization requirements, then this new tool is very, very powerful for their business. And so yes, the learnings we've had is that, I think, I guess, once you know the rules of how that business wants to operate and do their route optimization, we can now deliver that, and we can deliver and simplify enormous complexity where a human was able to do that and taking an entire day to do that to now being done in a matter of minutes. And so it's very, very powerful.

The ATM facility wasn't drawn during Q3, what conditions would need to be in place for you to start drawing on it, whether for a Bitcoin accumulation or operating purposes?

Yes. Look, I think that's something that the Board will determine as and when it makes sense. We want to see more volume being traded in our stock. The ATM facility may allow us to do that. I think a lot of investors that I speak to aren't interested in selling their stock. And so this does allow us to actually create more liquidity, and so yes, I think when the Board assesses that is the right time, we'll look to do that. But definitely, we see this as a tool. We want to use this tool. And we're hopeful that liquidity will improve in the stock in the future.

Without the ATM facility being utilized or fresh capital, the BTC treasury is not growing, which contributed the decision to list on the NZ. Do you have any comments on that?

Look, I think what we have set up now in the NZX is we're set up to be able to do this. And we weren't able to before. I think you've seen a lot of Bitcoin treasury businesses were last year, in particular in the middle of the last year, we were able to raise substantial amounts of money to acquire Bitcoin. The market has changed, and that's simply not the case today. However, getting an operating business that is running profitably is going to be -- put us in a really good position to be able to do that in the future. And I think there's a number of other things that we can look at. And whether that's thinking about things like preference shares into the future, and particularly once we're a profitable business, that makes a lot of sense for our business to be able to do that.

With the 2 capital tools in place, being the ATM facility and the buyback, how should shareholders think about the 2 working together?

Yes. So when -- we think the company is undervalued as we do today. We'll look to use the buyback inside of our trading policy that allows us to do that. And at the same time, when we see that there is demand for our stock for people to buy it, then we will use our ATM facility to go to sell stock on market to raise capital for the business.

Thanks, Steve. That actually concludes the Q&A session today. So I just wanted to say thank you to everyone that submitted questions and hand over to Steve for closing.

Yes, thanks. Thanks, Georgia, and thanks, everyone, for joining. I really appreciate the support that we're receiving from investors. It's a very -- I think we're in a really great position as to where the company is today. We're seeing some really positive things happening both in the product but also in the customers that we're speaking to. And we'll definitely look to keep investors up to date over this next quarter as things eventuate and as there's updates available to the market. But thanks, everyone, for their time, and look forward to being in touch shortly. Thanks very much.