Mission Ready Solutions Inc. (MRSH) Earnings Call Transcript & Summary

Perfect. So good morning, everyone. Thank you for joining us this morning for our CEO live event and Q&A. Today, rather than going through a presentation, but we will directly jump into question and answer the questions that were prior -- submitted prior to the call. You can also still submit your questions through the question-and-answer function of the call. We want you to be aware of the forward-looking statements. So this call today can contain forward-looking statement information within the meaning of applicable Canadian and U.S. securities legislation. General forward-looking information can be identified by the use of forward-looking terminologies such as anticipate, believe, plan, expect, intend, estimate, forecast, project, budget, schedule, may, will, could, might, should or variations of such or any similar words or expressions. Forward-looking information is based on reasonable assumptions that have been made by Mission Ready Solutions as of the date of such information and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievement of Mission Ready to be materially different from those expressed or implied by such forward-looking statements. Forward-looking statements are based on assumptions management believes to be reasonable. Although Mission Ready has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers and viewers, they should not place undue reliance on forward-looking information. Mission ready Solution does not undertake to update any forward-looking information that is included herein except in accordance with applicable securities laws. Buck, I'll now pass it on to you to start the day with the question and answers.

All right. Thanks, Dom. Before we enter the question and answer, I do want to talk a couple of -- just kind of make a couple of statements here regarding the financials and some of our theme of the questions we've talked about over the last several weeks. So the financial statements are pretty much as we expected, with the lumpiness of government contracts and the awarding process. A lot of what we thought were hopefully going to be awarded in fourth quarter '21 or first quarter '22 were delayed. This obviously has an effect on our top line revenues, which people have pointed out and we are very much aware of. However, as we've been talking about over the past year, with significant changes to our financial management philosophy, we were able to maintain our ratios, maintain our cash flow and support the operations despite the lower top line revenues. This resulted in a gross revenue of a little over $1 million, gross margin just under 50%, a decrease in liabilities from the same period of last year and net income of just over $0.25 million with an adjusted EBITDA just under $1 million and $2.5 million in positive working capital. If folks remember, those are all significantly positive numbers. Even though they may be little from expectations of some folks, the fact that they're all positive is a great sign for the company. The reason we focused so much on cleaning up our financials over the past year or so is exactly for this reason. It allows us to remain viable even when contract awards are delayed. And I think it's really important that we recognize a tremendous undertaking of reducing our outstanding debt, right financing the other debt that we had on our financials and just the overall change in philosophy as we move forward. All the financial work that we do has multiple impacts. First, as most people know, part of our business model is a distributor. As such, relationships with our vendors and manufacturers are critically important to our success. We not only repaired relationships with the vendors over the past year, we have been adding new vendors to meet customer needs as well. And when I say that the work we did last year will set us up for the future, part of this -- what we just talked about is part of what I meant by that. The second part of what I meant by that is setting our business up with the correct financial fundamentals so that as long as we maintain discipline, the inputs that we generate will generally result in a positive outcome. I mentioned that part of our business model that as a distributor, the other components include manufacturing and subcontracting. Subcontracting can mean many things to us. It may mean that we manufacture as an OEM for folks in the body armor space through PTFM. Or it may mean that we provide contracting support for U.S. government or USG contracts that we may not otherwise qualify for on our own. This is important when we look at things that have certain set-asides that we may not qualify for. We can still be relevant and generate revenue through those opportunities by being a subcontractor and providing our expertise to the folks that do qualify, but may not have the contracting expertise we do. And so these things together is a very important concept to understanding our business model. At a high level, as long as there's a war or a conflict, a natural disaster or pandemic, then we can find multiple ways to be relevant and competitive. We may not always be able to control time lines and decisions, but we can put ourselves into those conversations. To further that thought, the past several calls and newsletters and communications that we've had through social media, I made out my vision for the company both internally and through those public disclosures. And that vision is to have financial discipline, to invest in our company, to follow areas where we believe the future of the USG spending will occur and to layer our revenue streams. And we'll kind of break that down a little bit here in a second. But all these things take time, and all these things have been worked on tremendously over the past year. There are a lot of things that are fundamental to our business, but may not bear fruit in an expedited time line. It does take time for us to convert these things into revenue. And part of that is outside of our control. Part of my prior statements also in trying to explain this vision is that as we have a multitude of different revenue streams outside of large government contracts, I refer to those as kind of the cake that will cover our operating expense, and thus, even out the lumpiness of U.S. government contract delays and whatnot from that point of view. I've been -- made a statement of -- I can't remember exactly how I phrased it, but any profits from large contracts is the icing on the cake. And that was meant really to convey to you guys exactly what we just demonstrated in the first quarter. With the fundamentals being correct, we can cover our expenses, we can maintain operations without the need for large contracts. And then when we do get large contracts and you profited from those contracts, we can use to reinvest in the company and expand our franchise. So hopefully, that will help with some folks to connect the dots on why I said that statement prior. To further explain layering of revenues, which we talked about in the past as well, the layering of revenue streams include revenues from our existing customers on the Unifire side for fire and rescue, which we have branded as our Advanced Tech Rescue. The sale of chain saws, cut-off saws, chains that go with those and the blades that go with those, the positive pressure ventilation fans, et cetera, all that stuff is all part of that existing customer revenue. It also includes OEM work through PTFM for body armor, plate carriers and anything else that really fits in the industrial cut and sew capability that we have in Tennessee. An additional layer represents ongoing contracting vehicles such as our COTS tents and shelters contract, our Cold Weather BPA, the Afghan and Ukraine refugee BPA. And then finally, it kind of includes our current GSA schedules and future GSA opportunities. Those are all different layers outside of large contracts. The large contracts that have been maybe the -- again, for risk of missing some folks, that's the icing that will really allow us to move our franchise forward if we can capture all the revenue from all the other opportunities that will sustain our business model, our operations and allow for our organic growth. But large contracts are really big needle movers, but they are somewhat lumpy, as we've mentioned before. All of these different revenue streams that I just talked about provide different control factors for us. Different control on timing, margins and revenue amounts that we can generate. The more we can control, the less reliant we are on U.S. government for awarding contracts. While these numbers are, as I referred to them before, the inputs for quarter 1 of 2022 are not like prior quarters. The results are that the shift in that process does produce the results we want. The only consideration we should really address is the philosophy, what I explained, is that I have -- excuse me, the only kind of chink in that process is that I've underestimated the timing. Imagine if that timing were a little bit different and the top line revenues were $5 million or $10 million, as we've seen in the past, with a couple of those different revenue streams, the core math problem would have been completely different for the first quarter. Even though it was positive, it would have been exponentially more positive. That is at the core of creating a sustainable business and creating value over time. While we're talking about the different revenue streams and time lines, we did receive some questions regarding contracts. I believe that we've been pretty clear that we do not put ourselves out there by disclosing exactly what we're bidding on. I think it puts us at a disadvantage. But I do want to try and address it at a little bit more of a high level. And what I mean by that is, currently right now, we have 57 active submissions to various USG agencies for open solicitations. 57 proposals that we've submitted, 36 of which were submitted in 2021 and the rest in 2022. This does not include any open market orders, any GSA schedule orders, any RFIs that we've responded to or really anything else outside of contracts that have made it through the RFQ phase and that we have completed a response to. People have asked to try and give a little bit more insight into what we're bidding on and what we win and what we lost. What I'll say is out of those 57 submissions, we've only been notified that we did not win on one of them. The rest remain in a purgatory of nondecisions, if you will. And this number also does not include the RFQs that were posted and canceled with no further explanation if or when they will be reposted again. So I think, hopefully, that will help some folks that have questions about what we are working on. There's a tremendous amount of activity that we've done, that we have proposed on and we are just waiting for. We have not lost any of these contracts. This indecision does not mean that we won't be part of that conversation. It just means that conversation hasn't happened yet. And I think it's also important to note that this phenomenon is not unique to Unifire. Anecdotally, we have heard through our industry partners that a majority of small businesses are experiencing delays in awards, and it impacts them as well negatively. But I think this is good news for you and for our company, because this strengthens what we've done as a company and those changes we've made, and it allows us to weather these storms where other small businesses may not make it. We've been receiving some questions about why do you guys keep blaming everyone. I don't think we're blaming anyone. In fact, I think it's the opposite. I think due to our leadership team, we have been very proactive in this past year in our positioning. We have talked about and then executed on what we believe are major spending areas for the U.S. government. We talked about threat levels revolving around Chemical, Biological, Radiological, and Nuclear or CBRN. We have talked about increased awareness around information technology and kind of a sister to that related to a separate concern of cybersecurity. These are all concerns or spending avenues in addition to the conventional spending to maintain our military force readiness and our pandemic responsiveness. As such, we have announced exclusive partnerships or distributorships with some industry leaders and pioneers. You can -- for example, you can pull up almost any news outlet, read articles by increased cybersecurity threats and how the USG is looking for solutions, the critical defense and infrastructure assets. One of the announcements we've made is our exclusive distributorship with QRCrypto as a potential solution for these threats. We have also announced other partnerships with folks like Blueforce Development on the IT side of things that provide critical solutions to communications for our military, law enforcement and other first responders. I think we, as in many other explicit relationships that we have announced and that we are continuing to cultivate, strengthened our position as a solution provider, both inside and outside of the U.S. government. We recently announced our trip to New York to present Blueforce Development to the NYPD. I think the significance of the NYPD trip was somewhat overlooked. And I think it's important for us to recognize that the NYPD is not only the largest police force in the world and the fact that we were allowed to present a solution to them is a huge win for the company, but it also represents many, many opportunities across a lot of what we do, not only in the IT, which was our main focus, but also in our sensor capability, our body armor capability, all those things that we do, the NYPD is a fantastic customer for. But we also have to recognize that going through a meeting to an order takes time, and it takes a little bit of luck. We continue to build on this initial meeting that we had, and we will continue to explore these types of partnerships as we look to diversify our revenue streams. When I talk about expanding our revenue streams, sometimes we can predict and dictate the direction we want to go, as we kind of talked about prior. However, a lot of times, we have to be prepared to respond to what the world presents to us. This was demonstrated in 2020 with the COVID pandemic, again, with the invasion of Ukraine recently. We did not have -- we didn't really predict the invasion. We didn't think Russia would invade Ukraine or the needs that would come from that. However, due to our business model, due to our leadership team and our vendor network, we were able to respond very quickly to work with our partners around the world to provide tactical medical equipment, which we've recently been sharing a lot of on our social media platforms. But I think also, if you read between the lines on that, what that really says is Unifire and our team has been developing relationships with representatives from the MoD of Ukraine and the surrounding countries, the allies, the UN members. All those opportunities are fairly new opportunities for us. We are tracking the money appropriated and approved by the U.S. government for aid to Ukraine, but I think this is also important to realize that the money that is approved by the government is not immediately available for most items. Humanitarian aid, clothing, shelters and such, we believe that it will take probably 6, 8, 10, 12 months for those billions of dollars to make it way through the U.S. government contracting process. But with that said, Unifire is positioned well to be relevant throughout that entire process. And what I mean by that is if money comes available to provide PPE, and I'm not talking about PPE in the COVID sense, I'm talking about PPE in the broader sense, so it's body armor, fire-resistant clothing, uniforms, all that kind of stuff. And if that becomes available on a shorter time line, we are prepared, and we are connected with vendors, and we are ready to go. If money for humanitarian reliefs such as the shelters, refugee clothing, blankets, bedding, MREs, baby formula, any of that stuff, if any of that money comes available, we are ready. And we have contacts both inside and outside of the U.S. government that will allow us to explore those and expand those relationships and those revenue streams. And you can see that by the refugee BPAs that we have, that we just talked about. That contract vehicle is already in place. So it's just when the funding is released, we are ready to go. And then you have to think about the opportunity for the future. When the whole thing is over and rebuilding starts, we will be in a position to provide those resources for shelters and for communications, for infrastructure rebuilding, all those type of things. And if you expand that to other European nations, I think that there was a big wake-up call that some of those European nations are underprepared for potential threats as well. All these relationships that we are building with the MoD in Ukraine and the surrounding countries, those are all opportunities for us for foreign military sales and open market sales into the future. And then one last thing before I get to the question and answering here. One last one thing I want to address is that kind of rounds out some of the work we've done to build the foundation for our franchise is to look back to the very beginning of when I came onboard and talked about the accounting software that we implemented. Some folks may remember that we talked about the software and there were both robust capabilities it has for reporting, quoting, billing, all those things as well as setting up KPIs, so we can measure what we are doing internally. There's an adage that says you can't manage what you can't measure. And we've talked about that prior. Now that we are a little bit over a year into the new software, we are getting to the point where I can effectively manage the changes we need to make and enhance what we are doing well. Again, fundamentally, this starts with the financial management, but now we can expand that to how we respond to opportunities. It makes us more efficient in that process. It allows us a greater understanding of what is working and what is not working. And looking into the near future, I believe we'll make changes that will continue to strengthen our position, make the investments in the company we need to make that will provide the greatest return financially. And then lastly, we will continue to invest in our people and expand our sales force and workforce. So now, Dom, I think we'll look for the questions here. So if you want to send those, I think I got those now coming through.

First question is in regards to government contracts. Is it still status quo like it has been for the past year or so in terms of contracts waiting to be awarded? Most investors know about the big [indiscernible] that are still waiting to be awarded like BCS, gowns and the GSA VA schedule. Just wondering about other potential contracts for the company. Has there been many contracts that have been lost out on? Obviously, the company will not win everything it bids on and it is a hush-hush industry, but just curious to see if any more information can be shared on that subject. It's a good question. As I mentioned prior, we have several open submissions that we have responded to that just have not been decided on yet, with the exception that I mentioned. There might be one other kind of quasi-technical exception to that is that one contract we have submitted on, we have -- it's not closed out. It's only been partially awarded. So we're very much in the running on it still. But it's one of those things -- and this has demonstrated the process of contracting and awards. It's been out for about 6 months now, 5 months. It was kind of half-awarded, and then it has kind of stopped. We are handcuffed in what we can do on that. We can't ask for a debrief. We can't -- we're not -- we have not been given an unsuccessful letter. We just kind of simply have to wait for the government to pick that back up and continue to award out on that contract. Those things are outside of our control, and they take time. And it can be frustrating for investors not to know what we're working on in that. But there's a reason why we don't necessarily disclose that stuff. The one contract -- you're right, we don't win everything we bid on, but the one contract that we did hear that we lost, I will tell you that we were technically spot on in the presentation and the capabilities and everything related to it. Where we lost that was just simply we couldn't be incumbent on price. And I think this is an important note that due to our modeling and our discipline, we know exactly where we can go and where we can't go with margins. Anything that requires us to go below that threshold, we simply just cannot go. And if we know that ahead of time, we just simply won't bid on it. There's too many companies that chase work and get work, and then they lose money and they go out of business. We will have more discipline than that. My second question is in regard to lack of contracts revenue during a time where there is an ongoing war and more global crisis. So again, I want to drive on this point. Just because there's a war, it does not automatically equate to massive contracts immediately. The U.S. government has a complex process of diverting funds that are appropriated and approved into contracts. And that process includes adherence to many laws, clauses and other requirements that are involved in that. You see on the news, the politicians and the PR folks, they want to stand out and trumpet that $14 billion was approved or $40 billion was approved to support the efforts in Ukraine. Well, the reality is that most of those funds, like I mentioned, won't be available for 8 months or more. What we can do, though, as a company is we can do the work with the NGOs of the world, the nonprofits around the world to help bridge that gap until the USG funds are released. And that's a very -- it may not seem like that's a very fruitful effort today, but it's incredibly important that as we form those relationships and our performance is being established and tested with supply chain, what it really means is that Unifire is creating opportunities for the future. And that's really what we want as what we talked about to shareholders before. Next question here. Can the company explain why revenue was lower than the previous quarters? Is this cause for concern? How will revenue be improved? Well, I think the comparison of revenues to the prior quarter should be taken in context with the world around us. First quarter of 2021 was high due to the timing and performance on the isolation gown contract. And what I mean by that is the isolation contract was actually awarded in 2020, but performance, billing and payment recognition or revenue recognition was not recognized until first quarter of 2021. The expectation of having a similar quarter first quarter in 2022 with no major contracts [ analysis ] is misaligned with what our industry standards are. And I don't believe this is a [indiscernible] at all. We have talked about the delays in decision-making on contracts and the lumpiness of the process. But I think it's important to note also, again, like we mentioned before, just because those contracts have not been decisioned yet or awarded yet doesn't mean they go away. Typically, the result is that those awards are being shifted to a later quarter -- later months or maybe pushed depending on when it is pushed into the next year, but it doesn't go away. And if you play that out, if an award we expected in quarter 1 is delayed to later in the year, then the performance billing of payments will be delayed as well. And sometimes, though, what we think may happen in a certain quarter gets delayed, but it's replaced with some new opportunity. We have talked about some of these contracts we expected to be in the fourth quarter of last year, we talked about having a strong first quarter and second quarter, because the expectation was certain contracts would be awarded in that time frame. Well, then the invasion in Ukraine happened, and that stuff got delayed. Well, that's okay, because those don't go away, but those opportunities are replaced by opportunities in Ukraine. So we shifted, pivoted a little bit, and we're able to provide new equipment and new relationships in Ukraine. So we kind of replaced some of that lumpiness with new opportunities that weren't necessarily anticipated. You have to understand that government contracts are not necessarily seasonal or cyclical in nature. There is no historical kind of rhythm to it. There are times of the year where we think the government will spend more money to use their budgets prior to the fiscal year-end. But in general, the U.S. government is looking at the long term, and quarter-over-quarter awards is not the driving factor. If they want to have a product, an item, a widget, they don't care about when it's awarded, they just care about when they're getting to -- when they get to it, and it may be in the quarter we expect, it may be the next year or anywhere in between. And then I think, what was the final part, how will revenues be improved. Revenues will improve as we continue to expand our non-U.S. government revenue streams. That will help level out the lumpiness. And then, of course, when those contracts are decisioned and awarded, that will be a major impact to our revenue streams. Next question here. Can the company talk about current contract bids and how they feel they are positioned to be successful in that process? Yes. I think we talked about the current contracts and other opportunities pretty significantly right now. But I do kind of like the spirit of the question about our feelings internally on this process. I think I speak for the entire leadership team. We're very optimistic on some contracts, confident, very confident in others. And some of them, we know we're pushing our threshold a little bit. We're expanding some stuff that is within our wheelhouse, but maybe not something we're complete [ issuance ] for. There's maybe an incumbent that has been really locked in or something to that nature. But I can tell you that when we bid on anything, any submission that we bid on or propose on, we believe that we are putting a quality solution forth and in a manner that if we win, it will be a positive result for us. What we can't control is what others can and cannot do. And this kind of goes through some of the stuff I said before. In my opinion, there are some in our industries that we can look back on and -- from the outside and look at, and we can look at some of the stuff they're doing now on the current bids without regard to basic business fundamentals. They may beat us on the contract, but will ultimately lose money in performing that contract. We've seen that throughout the industry quite a bit. The result may be that the company goes bankrupt or they lose the contract and become blacklisted for future work. That's their issue. What I can tell you is that Unifire, with our discipline, with our expertise and with our capabilities across many different areas, we have been in contact with the government or approached by the government or agencies to step in to help where others have failed. And I think that, that is an incredible testament to our folks to do the right thing and to be confident in our capabilities and stay within our capabilities. I believe that we will see more and more of this, especially in the environment that we're in, where if we may lose the initial contract, there's still an opportunity where we can step in and help out after the award because somebody else has failed to do the right thing. Next question here. Can Buck talk about where he sees the business heading? Shareholders are losing confidence. What is the game plan to regain that confidence? I feel confident that we have discussed not only today, but prior the direction of the company, the multiple revenue streams, the business fundamentals, the U.S. government and non-U.S. government opportunities, the focus on areas where we see the U.S. government engaging in the future. I am confident that we have put resources to all of these efforts, and I know it will take time. But I think that we are extremely confident in the direction and the position we are in today. Our posturing for those opportunities, our fundamentals are very well ingrained in our leadership team now, and we're in a great position. I think that there are some shareholders who are losing confidence, but there are a lot that understand our vision. And I think the folks that understand us are the folks that take the opportunity to communicate with us and to reach out through those channels that you see on your screen for e-mail or phone calls. And I would say that if after everything we discussed today, if you're still losing confidence, I would really encourage you to reach out to those opportunities, those e-mails, through the phone calls and engage with us, a meaningful dialogue with our leadership team. I understand that I have insights that the average shareholder isn't afforded, because I'm involved in the day-to-day work with our team. And I think I will leave it with -- I will say that my confidence in the company and the direction of the company and where we're going in the future is higher than ever. Next question here. Where is the revenue from the $200 million contract? Have there been any orders at all? The COTS contract, the tent and shelter COTS contract vehicle that I believe you're talking about, is the vehicle in which orders are placed. It doesn't automatically come with $200 million in orders. The orders are placed by different agencies throughout the contract. But first, that customer has to have a secure funding. I believe that part of the delay on that is related to both COVID issues and Ukraine issues. For example, the way the U.S. government works is funds have to be appropriated and approved in the budget. And sometimes, a customer may get funding allocated to them in those line items in that process. And then things like COVID happen or Ukraine happen, and those funds get pulled to be reallocated to other places. For example, if you recall, at the beginning of the year, the Biden administration announced that there would be something like $1 billion at-home COVID tests. Well, that costs a lot of money. And those funds don't just come out of nowhere. They have to be appropriated. At some point, they have to be taken from other -- the other line item. And I think this is part of the delay in a lot of things is that the front side of the U.S. government, the politicians and the President and the agencies, they talk about all these positive things, but the funding doesn't come with it automatically. The funding has to be taken from other lines in the budget. I think this is the same that has maybe caused some delays when we've shifted money from maybe some currently planned projects to Ukraine. I think the important thing to note, though, is that no matter where that money is allocated to or generally where that money is allocated to, the company is positioned to shift with that money. And that's a big thing for us. Now timing, timing is never working out in our -- in the time line that we want it to. But it doesn't mean that we are not part of that conversation anymore. It is the opposite, where we can shift to flex and be -- we can follow that money. Next question here. What has changed with margins? And why was a profit reported in this quarter with such low revenue? Well, regarding margins, we've talked about our different revenue streams and how they allow us to have different margins. For example, when we're competing on the SOE TLS contract, those winning margins were 3%, maybe 4% at the very best, which is very low. We could not win at higher margins. But as we moved away from that contract and we focused on contracts that allow us to win at higher margins, that shifted our GPM. And that's why we're able to move from a gross profit margin negative, prior to me joining the company, to roughly 9% last year. We also talked about margins when it comes to the products that we manufacture. How we can get margins that are 20% to 40% or higher? Some of our legacy products and firefighting related projects, margins are higher. And so when you isolate any given product, the margins can be skewed. But I think typically, our financials reflect several different revenue streams and the gross profit margin is averaged down to the revenue stream and related margin that makes up the largest dollar volume. In first quarter, with no large contract to average that GPM down and no large dollar amounts to lower that down, we -- you start to see some of the margins related to our manufacturing and other product lines. And then from there, gross profit margin is simply a math problem of the total revenues minus cost of goods sold, and then it flows down through your expenses. So at that point, it's just a math problem, and that's how we're able to get the other numbers. What is the time line for the Ballistic Combat Shirt and how many other bids are we waiting on? Well, wish I could tell you the time line on the BCS. I think we all hoped it will be decisioned by now, but that's a very major shift for our U.S. military. And there's a lot of complications or -- not complications, a lot of complex components to the BCS into the future of it, the material and the size of that program. And it's just taking a lot of resources for the government to work through all those submissions, the technical side of it and make a decision. Other factors may have influenced the timing on that. We just don't know. We could be surprised today, tomorrow, next month, or beyond. We just really don't know the timing on that. And I think as far as the second part of the question, how many other bids are we waiting on? I think we've talked about that. Quite a bit. I understand that a lot of resources have been put into tightening the financials, but perhaps it is time to put equal energy and planning to scale the business and increase revenue. I have no words to express my disappointment as an investor. If there is not a clear path or plan in place that is properly communicated to investors in the near term, I will cut my losses. Well, if after all we discussed today that the plan is not clear, then I would offer you, again, for you to reach out to discuss this directly what you need clarification on. We cannot scale a business without putting the pieces together. I talked a lot about order of operations. I understand that everybody doesn't always get all the newsletters or talking points or other disclosures that we put out. And we have put out a lot over the past year. However, they are all there. And if you can't find them online by yourself, then I would really encourage you to reach out through the corporate communication channels that we have provided. The vision of the company and the stuff we are working on that improves our financial stability of the company, we've disclosed that to you guys. We talked about it today and pretty much everything we can disclose, we have disclosed to this point. I think as an investor, you have the responsibility to yourself to do your own due diligence, to weigh your risk tolerance, to decide yourself where you want to invest your money. I am confident that we have communicated when we have information to communicate. I think from a business perspective, we have done the legwork to be a business that can scale. We have made several changes that allow us to recognize different opportunities. I believe we have communicated quite extensively how our revenues are generated. And personally, I think the question you should be asking is less about the focus on revenues and more about, is the company profitable and sustainable. And to that, I would answer that the company is very much profitable and sustainable and that our entire franchise is moving in the right direction. A couple of more here. Earlier this year, you stated that everything the company did in 2020, 2021 were setting up for this year and future years. You also stated that you believe that the share price was undervalued around $0.30. You also claimed late last year that the website would be finished by December 2021, then January, then Q1. Since these statements, not only has the website not been finished, but MRS has not gotten any new revenue whatsoever. The share price has gone down another 50%. Why shareholders should continue to have faith in this company when the company has failed on its execution time after time and you can't even reveal what you're in the running for? Well, this is a tough question. And as we stated before, we're not going to shy away from the tough questions. But I think that also means that people asking those tough questions have to be ready for tough answers. I think I addressed the sentiment already around what we did in 2020 and 2021 and how it sets us up for the future. But just a quick recap. If we didn't pay our bills, then we -- and we didn't clean up the financials, if we didn't restructure the debt and understand why the company was losing money, we wouldn't be talking today. So we had to work hard to restore those relationships with vendors, and we did work hard to establish the financial discipline that allows us to make money. And that is pretty evident in the quarter-over-quarter financials, the year-over-year financials that we have demonstrated over the past couple of years. Please take time to go back and look at those financials in those different periods, in the top line revenue and the net losses. So top line revenue does not always equal profit. That's why we focus on margins and percentages. I think that now that we have the fundamentals in place, as we increase revenue opportunities, we will have exponentially more profit. With regards to website, you're right. The original time line I presented to get the functioning e-comm platform was in December. I spoke about some of the challenges we faced at that time, and we adjusted the time line with the information that we had. The reality is that the e-comm platform has been functional really since January or February. It's active today. The reason why we have not pushed it more is that, quite honestly, the supply chain that feeds that e-commerce platform is backlogged. The majority of items that we added to the e-commerce platform are out of stock. And I made the decision not to push an e-comm platform where product is significantly unstocked. But the notion that we have failed on getting the website out is just inaccurate. And I think that the part of your question, where the company has failed on execution time after time, I think that's inaccurate as well. We have not failed in our execution time after time, and we've actually performed very well, given the environment that we operate in. Next part of question, how will the company cut cost? Well, we always keep an eye on expenses, and we've talked about that and trumpeted that as a significant part of what we've accomplished over the past year or so. But there's a limit in which we cannot go below on our expenses. You have to have certain things that cost money. And you have to have employees, you have to have rent for a building to operate in. You have to have Internet. You have to have the ability to execute on the opportunities that we see in front of us. I believe that we are a very lean company, and we control our expenses very well. Please elaborate on the cybersecurity and the needle-less medical device deal? What are the plans to monetize these connections in the near future? Or is it just another red herring like the AllClear deal for COVID tests? Well, the plan to monetize this relationship is like all other relationships. We work on identifying emerging needs of the U.S. government, of needs of our commercial partners. We did provide a solution to meet those needs. Sometimes those technologies are one of many solutions and sometimes they are disruptive technologies. The model in which we choose to partner with these companies and sign exclusive distribution rights and markets we think potential revenue exists is something we will continue to do. And it's cheaper for us to partner with companies, be a distributor for them versus acquiring a company with technologies. It also allows us to be a sole service provider on contracts without incurring any overhead. And even if we are not the exclusive distributor or a provider of a product, relationships are important for us, and we seek to become a dealer of record. The dealer of record or DOR program essentially allows Unifire to get an X factor, better pricing, than anybody else who may be a distributor. Therefore, when the requirement comes out, we have a little bit more wiggle room on our pricing. All of our vendors, including the cybersecurity and the IT related stuff, they all fit in that model. These are solutions to problems that we believe are existing or will be existing in the near future. And we are positioning ourselves well with those relationships that we are proactive when those requirements come out. But it will take time. Next question. Will this company take accountability for its failure? We have been told that everything is the government's fault or it's the fault of defunctive police. Yet the company has not done anything to diversify sales away from these sources. Well, I strongly disagree with the characterization that the company has failed in any way. And it makes me question your understanding of the company, contracting or, honestly, the way the U.S. government works. We have put out a lot of information about the processes. We have explained how funding works, and we have done that many, many times. We have made significant moves to diversify revenue streams. And we talked about that in the layering of revenue streams, and we have explained our thought process and our vision many, many times. I think, unfortunately, for this question, without having a meaningful dialogue to understand if there's something else that's kind of driving your line of questioning, I don't think I can provide much else to an answer on that.

Buck, we've got time for a few last-minute questions. So one of them is, what do you think about the current stock price? Do you think it resembles the true worth of the company? How and why?

All right. Well, obviously, I don't like the stock price. I don't like that it's been slowly bleeding in the past several quarters, and I don't think that it's reflective of the true value of our company. With that said, I think that the stock price is a reflection of what all of us as investors think the company is worth. What I've outlined for our vision is supported by the massive positive changes in the financials and the opportunities I've described today and prior should really give investors encouragement, I think, for the future. What I've observed the past year or so is that the financial health of the company has not significantly moved the stock price, as we've been getting financially healthier quarter-over-quarter. Contracts by themselves are not moving the stock price, as we have had several contracting vehicles. Being open to investors and providing an avenue for investors to communicate with us on a regular basis has not moved the stock price. The only conclusion I can really come to is that delivery orders will move the stock price, and I don't disagree. I think that's where we've all kind of landed on here. What I tried to convey to investors is that if you take any contract with delivery orders, and you try to guess that influence that contract would have on our stock price as a company in 2023 versus 2022, then I'm confident that the contract will have exponentially more moving power today than it would have with the company 2 years ago. And I think that savvy investors will recognize that is a function of all the work that we've done over the past year or so and the position we've put the company in for future growth. We have explained the delays. We have not blamed anybody. We've explained the delays and the process, and we continue to do so and be as transparent as we can. But we've also explained that we are confident in those opportunities. And those opportunities will not go away, but rather, they will probably shift along the time line in -- from quarter-to-quarter. I think that we have explained that we have a more diverse revenue pipeline than we've ever had before. And I think that, that is reflective of our business model and our financial acumen that we've been introducing this past year or so. And I really believe that if we stick with that model, we will get the contracts, we will get the orders, and we will be the solution provider for not only the U.S. government, but our commercial partners and our allies around the world. And that will, with the fundamentals in place, I think lead to a positive outcome for the company that we haven't seen before.

We've got time for one last question that was asked moments ago. How do you plan on expanding OEM facilities, if and when things like combat shirt and other bids are awarded? Do you wait for the awards to be awarded? Or do you fiscally plan for expansion to be ready to go?