SurgePays, Inc. (SURG) Earnings Call Transcript & Summary

Greetings. Welcome to the SurgePays, Inc. 2021 Year-End Financial Results Conference Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Brian Prenoveau, Investor Relations. Thank you. You may begin.

Thank you, operator, and good afternoon, everyone. Welcome to the SurgePays 2021 Earnings Webcast and Conference Call. Today's date is March 24, 2022. And on the call today from SurgePays are Brian Cox, President and Chief Executive Officer; and Tony Evers, Chief Financial Officer. Before we begin, I'd like to remind everyone that this call may contain forward-looking statements as they are defined under the Private Securities Litigation Reform Act of 1995. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. For a discussion of such risks and uncertainties, please see SurgePays' most recent filings with the SEC. All forward-looking statements made today reflect our current expectations only, and we undertake no obligation to update any statement to reflect the events that occur after this call. Also, during the course of today's call, the company will be discussing one or more non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are included in the press release we issued this afternoon. Copies of today's press release are accessible on SurgePays' Investor Relations website, ir.surgepays.com. In addition, SurgePays' Form 10-K for the year ended December 31, 2021, will also be available on the SurgePays Investor Relations website. And now I'd like to turn the call over to President and Chief Executive Officer, Brian Cox.

Thanks, Brian, and good afternoon, everyone. During today's call, I'll provide an overview of SurgePays' performance in 2021. I'll discuss our future and 2022 expectations. Tony Evers, our CFO, will review the annual financial results in more detail, and then we'll open up the call for questions later. 2021 was a transformative year of results and accomplishments for the SurgePays team. Our key objectives, including access to capital, liquidity and long-term shareholder value hinged on achieving a listing on the NASDAQ Exchange. This was without question the most important accomplishment since starting this public company journey almost 4 years ago. It was a bumpy road. We got thrown a few curveballs with COVID and some other things along the way, but our team persevered. And in November 2021, we completed a capital raise that netted the company approximately $20 million, and we completed our listing on the NASDAQ Exchange. There were several other notable achievements and moves made during 2021 that I'd like to highlight. We made the strategic decision to focus on driving profitability with existing customers and eliminating unprofitable customers. Our executive team set out to focus inward to explore margin expansion and pursue strategies to be more financially efficient while building the foundation for rapid sales increases. While our top line sales for 2021 did not increase, we reduced our monthly burn and cut our yearly operating loss by almost 50% compared to our 2020 numbers while still achieving similar top line sales numbers. These numbers improved month-over-month and trended towards operational positive cash flow. Perhaps the most transformative part of 2021 was our push to provide mobile broadband to underserved communities through the Affordable Connectivity Program, or ACP. Originally called the Emergency Broadband Benefit, or EBB, this program allowed eligible -- or allows eligible households to receive a discount on their monthly broadband bill of up to $30. The infrastructure bill late in 2021 transitioned this program from the emergency benefit to a permanent connectivity program benefit. We launched our SurgePhone mobile broadband subsidiary in August of 2021 to take advantage of this opportunity. We couldn't be more proud of the growth in this program and the customers we are helping. Making home Internet more affordable makes getting homework done, applying for jobs and receiving higher quality health care easier and more accessible to low-income households. We started with 0 customers in August and ended 2021 with over 30,000 mobile broadband subscribers. We surpassed 65,000 mobile broadband subscribers in early March, and the growth continues at this trajectory. We are currently licensed to offer this program in 14 states, encompassing approximately 25 million qualified households. We announced an initial target of 200,000 subscribers by the end of this year. But given the daily subscriber growth of our sales team, we believe this will easily surpass that number. Throughout March, we were consistently signing up over 1,000 subscribers per day. Not only is this providing access to essential technology for underserved communities, it will drive significant revenue growth and margin expansion for the company. Each subscriber provides $30 on monthly recurring revenue month after month. This includes the cost of equipment and commissions paid to salespeople. Factoring that in, our growth margin is approximately 40% per subscriber , remembering that we do get a reimbursement on the tablet device that we provide to the customer on the onset of enrolling them in the program and signing them up as a consumer and a customer. This new business has become integral to our overall strategy, and it's even more exciting because it's a perfect complement to our existing business of providing financial services to underbanked and underserved communities. Our suite of financial and prepaid products essentially converts corner stores and bodegas into tech hubs for underbanked neighborhoods. In February of this year, we launched our Bitcoin sales platform. This program enables local convenience and neighborhood stores to sell Bitcoin to customers for amounts between $50 and $1,499, keeping in mind this is without a bank account or credit card. We also do not use ATMs. We rely on the store clerk and the trust that they've built over the years serving their local communities. Customers simply download one of the many digital wallets available on their phone or tablet, and the clerk becomes their virtual financial teller facilitating this Bitcoin purchase at the register using our web interface app while checking out at the registry. To be clear, this isn't for investing in Bitcoin. I wanted our company to be at the tip of the spear grassroots level for adopting Bitcoin or digital currencies for actually use, enhancing the lives of underbanked and underserved folks in our country. Corner stores, bodegas and local convenience stores are profit partners that provide prepaid debit card, wireless card minutes and cash to digital currency conversions as well as capture data and build a loyal consumer base using our ever-growing network of fintech-providing software. These communities historically have been overlooked by larger corporations, and we saw an opportunity in this largely untapped market. Most people don't realize there are approximately 100 million Americans that are either unbanked or underbanked. It's almost 1/3 of the country. That means they don't have access to checking and saving accounts or credit cards. Everyday transactions that most of us take for granted, especially assuming most of you listening in my voice are in the investment class, these are not available. The luxuries that we are used to and take for granted are not available in the underserved communities. Their local bodega or convenience store or community store market becomes their trusted partner for obtaining and reloading their debit cards, adding minutes or paying their prepaid wireless bills and sending money overseas to family. With the addition of SurgePhone Wireless in some of these same communities, we believe our infrastructure positions us at the grassroots level. It allows us to serve the underbanked market better than any company in the sector. We're looking to corner the underbanked market, both in the customer's home through the direct-to-customer model where we are allowing these customers to connect to the Internet, we're enabling this, and also through the communities markets where they shop. We have a B2C and a B2B product that brings us in both sides encompassing this market. Our ability to grow our mobile broadband subscriber customer base and increased store count has significantly increased across the board. With the company's strategic position solidified, the balance sheet improved and the product offering growing, we anticipate revenue growth significantly growing in 2022. By the end of 2022, we expect to be at a sales run rate of $130 million per year with a higher-margin sales. We anticipate revenue growth will be evident in the first quarter of 2022 and will accelerate through the year. Moving forward, we will be talking about adjusted EBITDA as a way to measure the operational progress of the business, and Tony will provide some more details on that in just a minute. We anticipate that revenue growth starting in the first quarter of 2022 will translate to positive adjusted EBITDA in the second quarter of 2022. For the full year, we anticipate generating greater than $15 million in adjusted EBITDA. Keep in mind that a new subscriber base produces a loss of $20 for the first 2 months. This is on our mobile broadband once we're paying commissions and we're covering tablets and the initial cost, the cost per acquisition. After that initial period, a new subscriber drives high-margin recurring revenue every month. We intend to continue growing and focusing on the long-term opportunities even if it means a lower adjusted EBITDA in the short term. Our goal is long-term shareholder value. Our target of 200,000 mobile broadband subscriber activations by the end of the year is based on our license to operate in 14 states. We are working to be licensed in 20 to 30 additional states by May of this year and would anticipate higher subscriptions along with that. We have a goal to reach $1 billion in annual sales with profitable growth. And I want to stress that last phrase, profitable growth. We have made significant progress since this time last year. 2021 included a lot of bumps and bruises, but the entire team stayed focused on the long-term vision of the company, and we ended the year in a much, much better position. Revenue is growing. Profitability is increasing. We are now operating a business that has the ability to grow organically and through accretive acquisitions while simultaneously making money across our core revenue channels. Now I'd like to turn the call over to Tony to provide a brief revenue -- or excuse me, a brief review of our financial results before summarizing today's call. Tony?

Thank you, Brian, and good afternoon, everyone. I will begin my overview of 2021's financial results. For the full year of 2021, we reported revenues of $51.1 million compared to $54.4 million in '20. The 6% decrease was primarily attributable to a $10.2 million decrease in prepaid wireless business as we rationalized stores to focus on profitability. Gross margin in '21 improved to $6.2 million from $2.5 million in '20, a 150% increase. Loss from operations decreased 41% to a loss of $6 million in '21 from $10.1 million in '20. As part of our strategy to improve the foundation of the company, we conducted a thorough review of our infrastructure, software duplicity and excess products and customer base. We focused on profitable products and customers while eliminating nonprofitable components of our business. Also, we transitioned from our software development phase to the growth phase. SG&A expenses decreased $38,000 for the year, primarily due to decreased web hosting Internet costs and a reduction of bad debt expense. Net loss for the full year was $13.5 million or a loss of $3.09 per share compared to a net loss of $10.7 million and a loss of $5.02 per share in '20. We are introducing our adjusted EBITDA calculation as we believe this is a useful measure of the performance of the ongoing business that excludes many nonrecurring items. Adjusted EBITDA improved to a loss of $3.9 million in '21 from a loss of $8.1 million in '20. As Brian mentioned earlier, with the growth in revenue and profitability from higher-margin customers and products, we would anticipate becoming adjusted EBITDA-positive by the second quarter of this year and generate at least $15 million overall in '22. Turning to the balance sheet, liquidity and cash flow. Our cash balance as of December 31, '21 was $6.3 million compared to less than $700,000 at the end of '20. Inventory increased by more than $4.2 million at year-end as we made significant upfront purchases of phones and laptops as we prepared for the hyper growth of our mobile broadband business. We have minimal debt as we spent much of '21 cleaning up the balance sheet to position us for growth and improved performance. Given our strengthened financial position and capital structure, our cash allocation priority is now focused on investing in the business and maintaining ample liquidity for future growth. I will now pass the call back to Brian for some closing remarks. Brian?

Thanks, Tony. I think it's important to recognize we're not surprised of the success achieved in 2021 and the opportunities in front of us. This was a part of our strategic plan. Our team has worked tirelessly building a foundation for this type of growth. The underbanked and underserved market have been overlooked for far too long. I've been involved with this market for 20 years. Our goal is to provide essential financial services and access to mobile broadband to these families and communities. We believe we are cornering the underbanked market, both at home and where these customers shop. We believe the infrastructure that we have built positions us to serve the underbanked market at a grassroots level better than any company in the sector. We couldn't be more excited about the opportunities ahead, and we look forward to sharing our progress with our shareholders, employees and partners. I want to thank all the employees at SurgePays for their hard work. It's been a long road, but they've persevered and stayed focused and believed and followed and have gotten us here. Lastly, I greatly appreciate the support and interest of our shareholders as we continue this journey of growth. And before I take calls from you guys, I'd like to take a moment, take the liberty to acknowledge one of our fallen friends, Anthony Nuzzo. He greatly contributed to us getting to NASDAQ. Great friend. He'll be missed dearly. So now I'd like to open it up to questions.

[Operator Instructions] Our first question comes from the line of Michael Diana with Maxim Group.

You mentioned that your goal for wireless customers is 200,000 by the end of the year and you think you're going to easily beat that. Do you envision being able to get even more customers in 2023? Or does this thing sort of stop?

Thanks, Mike, for the question. No, I believe that there's a good run rate of at least 2 years. The Miami Herald put out an article a couple of weeks back where they showed 30% of the State of Florida, which we feel is like a good cross-section of the country. Florida is not a risk state, not a poor state. It's a good -- it represents the country well. 30% of the State of Florida, about 6 million folks, qualified for the ACP program. So those are households. And you extrapolate that out, there's a tremendous amount of business, and we've got a ton of momentum. Our company was built with my philosophy of sales and aggressive compounding growth. And as anybody that follows us knows, we're diligently working to get in additional states, and we hope to be able to report some good news about that soon. But once we have the geography that's nationwide, that also allows us to not only do the in-the-community enrollments where we have the tents we put up in the convenience store parking lots, where they come in and they sign up and enroll. Having a nationwide geography map allows us to go online sales now because it's very difficult to do geo-targeting and add up customers when you have 14 states -- 12, 14 states spaced out across the country. But when you can blanket, it becomes a far more cost-efficient cost per acquisition to enroll customers online as well. Additionally, we're going to kick the initiative off in -- should be about Q3 of this year for our prepaid retail wireless company to aggressively go after the existing market we have and upsell our customers. And by that, I mean, right now, there's limited one per household subscriber. So as we move closer to 100,000, don't think about 100,000 people with our product. Think about 100,000 homes, apartments, condominiums where we are the source of Internet and we have a direct communication into that household. Well, now we can come at these customers with a very, very aggressively priced. Due to our structure and our cost and our economies of scale, we can come at them with a very aggressive family plan that would be more of a retail-oriented plan. Cut the price out there where we would be the lowest provider of wireless service in the prepaid market. So we do have a strategic plan not only to continue to grow the ACP program at the rates you're seeing now and keep ratching that up, but also branch out and leverage what we're making to expand roots, no different than a tree system, and expand other products to those consumers in their household.

Okay. That sounds great. Now I know you have a huge opportunity here with ACP and you've jumped all over it. You're also pursuing your other -- the other leg of your strategy, are you not in -- with the sales team?

Yes, absolutely. We're deploying that right now. These are internally too siloed off, if you want to call them, a division of the company. We have people solely focused on refining, honing our direct sales team. And that's training in-house salespeople, onboarding them, getting our -- where we can reward them, entice them to come work for us, but also keep the carrot in front of them where they wake up in the morning with 2 things: more stores, more sales per store. Really looking forward to seeing some of the results. That's going to take a little bit. It's just like selling real estate. They've got to get in. We're adding -- you build the relationship. You start upselling products. So we look to really see traction on that by Q3 of this year, again, as we're adding in-house salespeople. And I think it's important to note, of the 8,000 transacting stores on our network, those all came from independent 1,099 representatives. So it's very difficult to push new products through people that don't -- that you don't, I don't say, control, but you don't -- you can't tell them and incentivize them exactly what to do. So we do feel like coming at it from more of a relationship standpoint as opposed to -- compared to merchant processing for credit cards where they have ISOs, where they just bring on the store and go down the road. We do expect to see both our stores increase and also sales per store increase.

Our next question comes from the line of Ed Woo with Ascendiant Capital.

Congratulations on the quarter and on the year. My question is, have you noticed any change in competition particularly as you're ramping up your core 200,000 subscribers?

Ed, that's a good question. I think what -- the competition has noticed the change in us, better said. Our -- my -- one of my biggest challenges that I have right now, as a matter of fact, it's next on my legal pad here after this call, is balancing growth and my, I'd say, insatiable desire to grow as fast as we possibly can while managing the cash flow side of things. Keeping in mind that we need to bring that tablet device in-house and then we put that tablet in a consumer's hand and that reimbursement comes about 30 to 45 days later. So growing at 1,000 a day, you got -- you're doing the math on that, we've got millions in inventory out in the field, millions in receivables coming in reimbursements. So there is a management piece where I could grow faster. But where we are right now, with the stock performance or our overhauled -- excuse me, market cap and our cap table, I'm not willing to go out and just hit the easy button and sell stock for more money. Obviously, we've got a pretty interesting story. We're getting offered some pretty aggressive things out there right now. I'm just not willing to do it. We feel like we can grow organically and using cash flow strategically, working with lines of credit with distributors, working with lines of credit from folks that are facilitating the sales force. So we're doing everything we can to really protect that overall shareholder value but grow as fast as we can. I do believe that, again, our shareholders are feeling the pinch. We're -- excuse me, not our shareholders, our competition. The competition, we've got a line of, I'd say, at least over 100 people out in the field that want to come sell for us in various regions that we've got a backlog of that have already been background-checked, already been checked into, already ready to go that we have not been able to send tablets yet because we need to make sure and take care of the folks we already have selling for us. So I think what's going to happen from a competitive standpoint is all of us are going to look for creative ways to gain customers and to maintain those customers and to keep growing. What's unique about SurgePhone and SurgePays is we're not just a one-off mobile broadband or prepaid wireless company. We have access through our integrations with Amazon, through our integrations with and the ability to incentivize people with $5 iTunes gift card that's texted to them digitally, same with Amazon. Like I said, the integration with Amazon to be able to incentivize people, send them $5, $10 in Amazon cash that loads directly on their app. So one of the unique things that we have is really a competitive advantage. We're already integrated with almost every other type of underbanked product, whether it be prepaid or financial. And again, if we're able to go out there and offer a product in rural America that would normally cost the customer for talk, text and data, let's say, $65 to $80 and we're able to offer that same product for $35 and still make the same margins that you're seeing in the ACP, I mean, it's pretty significant. And also, we're going to keep those customers. So we feel like our retention will be very sticky as we further ingrain ourselves in the market.

Great. And then my last question is, what's the biggest challenge to expand beyond the 14th state?

Ed, that's a loaded question. The biggest challenge would be, obviously, the ability to be licensed in those states. I think as we've put out there, we're aggressively working and we feel like we're close to being able to add at least another 30 states hopefully here in the next couple of weeks, but definitely by May. So I think if you keep an eye out, you're going to see some positive updates on that. As a matter of fact, internally, we're already making preparations scouting out different states that we expect to be in.

Great. Well, congratulations, and I wish you guys good luck.

Thank you, sir.

Our next question comes from the line of Adam Waldo with Lismore Partners.

Hope you can hear me okay.

Sure. Hey, Adam.

So I want to explore 2 topics at a high level. One is the LogicsIQ near-term spin-off and the second is getting a little more granularity on the guidance that you put out in today's press release for at least $130 million in revenue in 2022 and at least $15 million of adjusted EBITDA with exiting the year at 200,000-plus subscribers for the mobile broadband business. So starting with the LogicsIQ subsidiary near-term spin-off, am I right to understand that, that business has run rate revenue in the low $20 million annualized with EBITDA margins that are profitable business being cash-generative and EBITDA margins that look fairly typical for a SaaS business?

Adam, let me kick that question over to Tony just to verify 100%. I don't want to overspeak. I believe what you're stating is right. Tony, can you chime in, please?

Yes, absolutely. Yes. The revenue for Logics is, as you said, in that low $20 million. Probably going to be around $20 million, $21 million is what we're looking at for 2022. And the margins, somewhere in that 16% to 20% range.

Okay. That's the EBITDA margin then, Tony?

Correct.

Okay. That's very helpful, gents. And then so building on that, I mean, those kinds of businesses often trade at 2 to 3x revenue as stand-alone entities in the public market, sometimes higher depending on the incremental margins with growth and the growth path ahead. Is it your sense that in the public market post the tax-free dividend spin-off that could trade at $40 million to $60 million of enterprise value or more than the current enterprise value of the entire company?

That's a good question, and that's one of the late-night banter ping pong balls that we back and forth. First of all, we do feel like, as we keep performing on the SurgePays side, that we're going to be in a different position than we are now as we keep executing and showing our ability to do what we -- execute the plan that we laid out. And as we let people know what the plan is and the fact that we're doing what we say, we do feel like that will take care of itself as we work hard and as we're getting out there in front of shareholders. So I do want to say that -- one side of that. The other is this. LogicsIQ got to this point with me, Tony, our management team pulling over most of the profit from the company, and I'd say the gross profit from that subsidiary, and using it to fuel our SurgePays machine. I know fintech for the underbanked. I know telecom for the underbanked. I'm very familiar with scaling companies significantly and rapidly. I feel what I know and what I do best, and my goal was to get to NASDAQ first and then to spin this out. So because of COVID and some other things that hit us, we used essentially -- I funded the company along with the profit from Logics to get us across those lines. I believe when Logics is a freestanding entity and the goal of everyone working under that roof is to make Logics the strongest, most fantastic entity it could be and they're able to unleash some of the products that are in the pipeline. For example, they've built several really, really cool products that just need a little bit of funding to get out to the market. They've got a blockchain DocuSign product, that's really, really cool, a digital signature product that they've created as a solution for some of the components of their business that they already do. They've created an ability -- because they have this business intelligence or BI interface so that the client will spend more money when they have comfort with how that money is being spent. They were able to take that one rung up the food chain and build a really cool software interface, almost like a Twilio type interface, that is kind of a what you see is what you get interface that hedge funds can use that fund mass tort litigation for law firms. They can see how their capital is being deployed, how it's being spent and the results on our capital. So those are just 2 products alone, not to mention. They've got -- they've been working on some case management software for law firms that would go beyond just the mass tort litigation. It would actually be to help manage cases. And then expanding beyond just law firms, I think that's the future of Logics. It's going to be an enterprise software company that would provide solutions to firms, whether it be financial firms, law firms and the like. Right now, it does what it does best. It creates good revenue. We -- I took the money. We pulled that over to make sure we bolstered SurgePays to get us across the line. And so to answer your question, long and short, I do believe that, that is at least where it's going to trade, and I think it'll flourish once we push that up.

Okay. So it seems like $40 million to $60 million public market enterprise value is a conservative view for us and a tax-free dividend to existing shareholders is the plan. So what time line do you see for that at this point given the SEC process?

Well, we're a little bit at the, I don't want to say, the behest of the SEC, but we're following through. Anybody that's ever gone through the S-1 comments back and forth balling with the SEC, that's where we're in right now. We feel like we're -- we've got it within reach on the comments. The comments left are not controversial. They're more accounting and basic structural. So we're working through those. One of the reasons, filing these numbers, as you know, numbers went stale a little while back or I believe we'd be a little bit further down the road. But by doing this filing of the K, it'll enable us to send our already ready S-1 for the next turn. So hopefully, they come back here in the next 30 days with either fewer or no more comments, and we can get the show on the road.

Okay. And then once they'll come back with -- and you resolve your final comments, is it a -- it's a pretty quick process after that, right, to just basically dividend it out through your custody agent to the various shareholders, right?

What we believe that we're going to do is there will be a period of time that the dividend, I believe, at least 6 months before that will be, I'd say, dividended. I think I'm making a verb. I'm making something into a verb there. But a disbursement of dividends because I believe the way that it's going to work is we'll have to give a 6-month runway for the folks that -- at the capital raise to qualify for NASDAQ as I understand it. So most likely, based on what we went through with the SurgePays uplift, there will be, again, a 6-month runway for the folks that were involved in the capital raise to do the spin-off and the listing and the qualifications for Logics, that they would have that runway. And then based on -- really only based on how it affects shareholders in the most positive light, the right time to actually disperse those dividends.

Okay. So if you're saying 6 months runway from the November capital raise, that takes us in the late second quarter of this year, call it, midyear 2022, assuming everything wraps up fairly efficiently here with the SEC. Is that fair for issuing the dividend, I won't use dividend as a verb, either issuing the dividend to existing shareholders tax-free?

Yes. I don't want to be pinned to the math.

Okay. Fair enough. Somewhere over the summer, maybe.

If it was completely up to me, Adam, I mean, I would feel more comfortable. But considering that we have NASDAQ, SEC, investment bank, there's other people that are at the table with us. But at the end of the day, look, I'm just shooting straight, and I always have on these calls. I'm the largest shareholder of the company. So our officers are also the largest shareholders, and we've got a really -- we've got a Board interested in the big picture. So we're going to make that decision based on what's in the best interest of shareholders overall. And 6 months from now, Adam, the way that we're growing across the board, I mean, I think it's a totally different conversation anyways. So we'll see. Does that revenue -- do we need that "revenue" for the consolidated revenue? Is there a reason anymore to have non-underbanked, non-fintech, non-telecom revenue? If not, then yes. And if it makes the right sense, if Logics is rocking and rolling, yes, I think we'll go ahead and disperse the dividends of the shares of Logics.

Okay. Fair enough. And then so should we then take the guidance that you issued today for 2022 of $130 million of revenue at least and $15 million of adjusted EBITDA at least to include LogicsIQ for the whole year? Or would that exclude LogicsIQ? Should we think about that as a continuing operations kind of outlook? How should we think about that? That's my last question.

Continued average.

Tony, can you chime in?

Yes. For the full year is what we've anticipated at this point.

Okay. So you're really giving guidance today for at least $130 million of revenue and at least $115 -- pardon me, at least $15 million of adjusted EBITDA for, let's call it, continuing operations of SurgePays, excluding LogicsIQ subsidiary, which you intend to spin off over the course of the remainder of this year. Is that a fair conclusion?

Probably the opposite. Our guidance on the revenue includes Logics for the full year because, again, to the point, we don't have a time period set in stone, and the EBITDA does include Logics for the full year at this point.

Okay. So based on the EBITDA margin guidance you gave of kind of mid- to high teens, Tony, we're looking at $3 million, $4 million, $5 million of EBITDA from that. In that adjusted EBITDA guidance overall of $15 million, we're looking for $3 million to $5 million of that to come from LogicsIQ. Is that a fair conclusion?

Yes. Probably on the lower end of that, but yes.

Continue good success.

Thanks, Adam. I appreciate the question.

Ladies and gentlemen, that's all the time we have for questions. I will now turn the call over to Brian Cox for closing remarks.

Okay. Thank you, operator, and thank all of you for your interest in our company. I just wanted to wrap. I appreciate you persevering through our discussion today, and please stay tuned to what we're doing. We could not be more excited. I can't wait to have this call a year from now and be able to report back to you guys what we've done and the fruits from all the labor of the last 4 years of building the infrastructure, significant investments of time, energy and capital and doing so and growing so at a rate that's strategic, intelligent. And protecting all of us on these calls are our actual positions and doing as much as we can to avoid dilution while still growing as fast as we can and really getting out there and attacking and getting our -- getting a foothold in this underbanked market. I appreciate you guys, appreciate the time, and thank you. You have a fantastic evening.

This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation, and have a wonderful day.