WISeKey International Holding AG (WIHN) Earnings Call Transcript & Summary

Okay. Ladies and gentlemen, we're going to start. So good morning to everybody. I would like to introduce myself. My name is Carlos Moreira. I am the Founder and CEO of WISeKey, a Swiss cybersecurity company. I would like, first of all, to thank you for your presence. I know that is times with COVID, it's very difficult to organize anything, which is presential. This is actually the first time we address in the NASDAQ since we did the listing in 2019, December. So it's exactly 2 years, and it's a pleasure to be with you. We are broadcasted. So a lot of people are following us online as well. And the objective today is to give you an update on WISeKey, but also to show you very interesting technology. And it's going to be maybe the first time ever you will see it. And this technology then is being developed with cooperation with our partners, CasperLabs and Parrot and it's technology, and ARHT Media and it's technology that brings the concept of the platform effect. I think as the Internet is moving in what we call the Internet 3.0, things are getting disrupted in many areas. And I think when you act as a platform, you have a much better opportunity to provide better quality services to your clients. So just to give you a background, I founded WISeKey in 1999.z I was the Chief Security Officer of the United Nation before during 16 years. So my background is on high-end cybersecurity, government security, military security. And in 1999, after some discussions with the Swiss financial sector, we thought that there was a need for a cybersecurity company in Switzerland. Cybersecurity at that time was not obvious, 1999, people didn't care about cybersecurity. They thought cybersecurity was a nice thing to have, but not necessarily a must thing to have. And obviously, times have changed. Cybersecurity is #1 concern now for CEOs and Board of Directors as you could basically destroy the value of your company or your shares, if you are listed, if you have a cybersecurity attack. But cybersecurity is complex. What is cybersecurity? It could start from identity management, all the way to data mine through artificial intelligence data as a way to develop prognostic on data. So the cybersecurity is a very vast environment. The concentration of cybersecurity has been mainly in the United States, Israel, obviously, China, Russia. There are countries that they have expanded their cybersecurity offering, but it is very unefficient still. Still every day you will hear in the press that somebody got hacked, that Facebook lost the data, the Yahoo lost their e-mails, I mean it is a constant issue. And the reason why the Internet is not secure. The World Wide Web was developed on the top of the Internet, the ARPANET originally, and so cybersecurity was now part of their design. I know that you have so many CTOs here and others following us online. When I was in the UN, the world was developing Geneva. At that time, we already realized that the web, if they go exponential, which is exactly what happened, would have serious problem because the identity, the cybersecurity was not there. The idea of the web was decentralization, connect to websites in a very easy way, hyperlink environment. But in a way, the web was designed to be secure. So obviously, now we have a $20 trillion economy on the top of the web that has complicated enormously the thing. Companies, then they have put a lot of more data, a lot of more identities, a lot of privacy. They're not doing properly, and cybersecurity is becoming a major problem. So the presentation today is going to be about updating our progress. As I say, WISeKey, it was funded in 1999. We -- main focus at the beginning was on government cybersecurity, projects like e-voting, projects like national identity cards, projects like securing citizens on the platform, identity management, very strong background on identity management. We created a Cryptographic Root Key at that time. So a Root Key is something that is the ground zero on the Internet. If you own your own cryptographic Root Key, you have no dependencies to anybody else. Means that you can build a very sophisticated platform, identity management, and even in our days NFTs with total independency. So WISeKey together with RSA, Entrust, Cybertrust, DigiCert, they are the only companies that they have their own cryptographic Root of Trust, Cryptographic Root Key. The root of trouble, WISeKey has been downloaded 6 billion times. So we are in all browsers, all your mobile phones or your PDAs, everything that you connect to the Internet has already the WISeKey Cryptographic Root Key embedded. So this is something that it will take maybe 20 years for a company to do it because you have to wait until everybody downloads the Root of Trust, right? So once you have a private key under your control, it's very easy to provide a public key to your users because there are 2 keys: The keys that you own, the keys that you distribute. And both keys allows you to enter into a trusted areas on the Internet. So that's the first layer of the fans, the first layer of cybersecurity process that we need in order to create the platform effect. So the way that has evolved over the years and obviously, after the listing of WISeKey on the NASDAQ back in 2019 has been an acceleration on the company. It is because we managed to integrate things that we knew was required, but it was not properly integrated into a platform effect. It was one was the identity management, Cryptographic Root Key, but also how can I put an identity on inside an object? How an object, a camera, a drone, a connected car, a medical device, a pacemaker, a Medtronic's device, how can they become unique through a unique identifier. So you need to put something inside. So we acquired a company back in 2016, which was a spin-off of INSIDE Secure, a French semiconductor company, that in the heydays, this company was making $300 million revenue because they were providing the microchips to Blackberry. Blackberry went down, and you saw what happened with the mobile space. So this company was a huge drop in revenue, something like $35 million, and we acquired it. By acquiring them, the vision was, okay, I have the hardware in INSIDE Secure of VaultIC, WISeKey has the crypto, the software. Can we put it together? Can I put my crypto inside a chip, and the chip inside a drone, inside a robot, inside a medical device, can I do that? And exactly what was done. The integration of the WISeKey software now is embedded into the microchip. And this is what we call the cybersecurity IoT technology. This is a massive growth area. This is -- we are connecting 1 trillion devices to the Internet. Everything will connect to the Internet in a few years' time. And if they are not connected to the Internet, it will be like not having your PCR test, get in. So the same thing will happen with IoT. The problem is if you connect something to the Internet without security, that object becomes the Trojan Horse of any hacker getting into the infrastructure. So traffic lights, airport sensors, airliners, everything will need an identity and everything will need to be embedded into the object. So on that area, WISeKey has 1.6 billion chips already out there. So we have 1.6 billion objects in the world from Cisco routers to medical devices, and they are already there. Actually, later, you will see a presentation in the United States activities and some very good news that Richard will give you the briefing on how the chips have been using here in the United States with an interesting announcement we are making today. So as the market of IoT materials, those chips are becoming the only way that you can secure an object. And the only way then that object can send data to the cloud because, one, you need a chip. It's because an object needs to become an intelligent object. You have to move a non-intelligent object to an intelligent object, the data they send to the cloud or their identity, the store in a ledger, like we are doing with CasperLabs, blockchain ledger, that data needs to be interrogated all the time. So every time you want to check that drone is secure, you have to go, it's like swiping a card, a credit card. You have to check that the credit card is valid. In the same way, WISeKey checks that the identity of that object is valid. And every time you check, you can charge a few cents of dollar for that activity. So we are moving from the business model, and we'll get there later into the details of that, from selling the technology to charge the validation of the trustworthiness of that specific object. So what happened is that we suddenly realized that we were collecting a lot of data. WISeKey has one of the largest data base in the world of industrial objects. We are talking about petabytes of information per week. And that data, at the beginning, we didn't know what to do with it. It's data that we share with our clients. Sometimes we use it for analytical purposes. But obviously, if you do AI on the top of that data, you can provide a much sophisticated feedback to the customer. So we enter in -- and this is new, this happened only last year. We entered into an acquisition of a German AI company with the name arago. Arago was a company on KKR invested $55 million in 2014 for $100 million valuation. There was a management buyout in arago and then WISeKey acquired arago. Division of acquiring arago was mainly not so much because we wanted to acquire companies, but because we wanted to integrate their algorithm HIRO, H-I-R-O, which is the artificial intelligent algorithm that arago has. And the idea was that because we collect so much data, let's say, we are connecting drones, we are connecting cars, that data has huge value if it can be analyzed through AI, because then we can provide prognostics on the behavior of the object, whether the object needs maintenance, does it need maintenance, whether the object can be improved, all that data back and forward between the object, the cloud, the cloud AI and back again to the object is where the Internet of Things is all about. It's the fourth industrial revolution. And then WISeKey added that. And this is something that has allowed us to do very high level of automation. This is a very hot issue. Only automation companies, like UiPath, they are trading at 100x revenue with markups of 1.6. I mean WISeKey is trading at 4x revenue. Just to give you an idea where -- from an investor's point of view, where the money is, right? I mean, it is amazing how American companies get such a massive valuation, whereas the European companies get such a lower valuation because, obviously, our market is a smaller and the visibility is smaller. But the opportunity is huge because it's very hard to find a company with those type of assets that it's trading at 4x revenue, right? Even analysts, they are saying we should be 18x revenue only on that aspect. So just to give you an idea, position from the investor point of view, the opportunity. So this has created a new WISeKey, right? Which is the WISeKey that started to be presented to the market this year. After the integration of the different assets, integrating the microchips, integrating the cybersecurity, integrating the AI and converting all that into a platform, with a uniqueness for a national listed company is that we are very strong on blockchain technology as well. So the vision for us is that the world will move to decentralization. Decentralization is actually the model. People are moving from big cloud, from Facebook, from Twitter, from those aggregators into decentralizers. Users are more concerned now about their privacy, identity. They don't want somebody to own that for them. They are mature enough. I mean we are not any more teenagers of the Internet. We are adults on the Internet. So we want to own our data. We want to control our data through consent. We want to monetize our data. Eventually, data has a value. Data is the oil of the digital economy. And as a consequence, they are looking for companies that they can do that. This is the business model of WISeKey, is to protect the individual, put the human at the center of gravity. And that's -- by the way, this book is all about that, right? TransHuman Code is how -- and David will give us later some presentation, how you put the human in the center of gravity for you to understand, because this might not be clear in the United States. The identity in the vision of Europeans, but mainly Swiss because Switzerland, as you know, is a country where citizens around the country, I mean, politicians are figurehead, but the country is run by citizens through referendum. Everybody is very much concerned about your identity. You're identity should be owned by you, not by Facebook, not by any identity company. It should be owned by the user. It's like your birth certificate. You don't want anybody to own your birth certificate and have the power to revoke your birth certificate. So identity should be owned by you. Identities will be decentralized, should not be in one database, and you have to pay for accessing that identity, so ledger provide that services. And your consent, means the consent you give as a way of somebody accessing your data, like Facebook, like Twitter, people that they are, business model is all about selling your data, you should be able to have that consent. So you should be able to say to them, okay, eventually, I want to distribute -- give you my data, but I want something back. I want to get paid for it. And data has a huge value. If you divide the markup of the $10 trillion economy, which is data mining data by the number of users, if you divide $10 trillion economy by $2 billion user, you'll see how much 1 user is worth per year, right? So the business of selling data is a business that has huge impact. And if that business can be decentralized on blockchain, you put the power on the user and not on the platform. And plus of that is the object part. Objects are identity as well. So object data has huge value. Anyone would like to know the analytics of traffic lights in New York because that will allow them to understand how traffic flow goes or they would like to data mine your connections, mobile connection. So data has a huge value. If the data is attached to your identity, you control your data. And this is the vision of WISeKey, to give the control of identity back to the user and to empower their consent. Consent is the business model of the Internet 3.0. Consent means that it's like -- we're doing in our life. I mean, if you invite somebody to your house, for having a dinner, you're giving the consent that day to have a dinner. But you're not going to give the consent to come in, to have dinners every day of their life, right? It will be tiring to do that, right? So you give consent per activity. I give you the consent today to access my data because I want something back. But tomorrow, this consent has been withdrawn. In the current economics on the Internet 2.0, this is another case. When you sign off on anything, Facebook and other, you're giving them perpetual consent of your data. Your data is not yours anymore. You become the product of the platform. So the vision is to create a platform that sells, stimulate the other areas of the technology than WISeKey has. So you can enter through different sizes. You can enter through IoT object sensors, as I explain. You can enter through digital identities by providing -- and a digital identities actually an app with an WISeID.com. WISeID, you can download is free, and you have your own digital identity. You don't have to pay anything to anybody. Then you have the cybersecurity because this is the foundational layer and then -- and we will explain that later this afternoon with CasperLabs, is the NFT, the non-fungible token, which is a new thing that has emerged at the beginning of the year. There has been a lot of hype around NFT. Everybody emerge as NFT player. But actually, NFT is a bit more complex than just doing a NFT of a Picasso painting. NFT, you need to have a platform behind as a way to sustain the requirements of NFT, which are very stringent requirements. So all that collects data and that data is then data mine, analyzed by HIRO. So this is the platform effect I mentioned. I briefed before on the semiconductor. Richard knows more than me on semiconductor, and he will give you later a very good view on the market. But our vision of semiconductor is that -- and this is where WISeKey has put a substantial amount of money this year, is R&D on the semiconductor business. Why? Semiconductor is geopolitical. I mean you saw what is happening in the United States with a fight with China, where suddenly things got very difficult, supply chain has been disrupted, that actually has created some tensions, even in our revenue model this year because we couldn't supply as many chips as we wanted because the concentration of the manufacturing of those chips is still Asia, it's Taiwan. Imagine if China attacks Taiwan, what will happen? I mean, still -- already today, if you want to buy a new BMW car, you have to wait 7 months, 8 months, even a year because the requirements on chips is so high that the supply chain industry has basically collapsed towards that objective, to have 1 trillion objects connected. So having microchips in your company is a defensive technology. It's a technology you must to have. I mean as you realize, companies like ARM was an English company, was sold to SoftBank and then SoftBank sold it to, I think it was Qualcomm or an American company. Then you have NXP, which was a Dutch company, also acquired. There are not many left. WISeKey is one of the only left, and one of the only that has its own European-based chips and here in the United States with a very strong focus on IoT. So if I am an investor in my portfolio, I want to have some cybersecurity, and I want to have some chips on it because this is going to be a strategy. In the future, there is not going to be Internet 3.0, if you're not going to have chips. You have to have the chips. And not being able to buy the chips is going to be a major problem. So our objective is to decentralize part into the United States. One of the reasons we are here. We want to have our own chip capability here in the United States. We are working on post-quantum technology. One of the threats on cybersecurity is quantum computer. Once the quantum computers will become mainstream, they will be so powerful and they will be able to break any crypto in the market now, including WISeKey. So we have to already think about how can or crypto could be upgraded using the power of the quantum computer once they will be there. So we have developed a technology, what you call that post-quantum technology that simulates a post-quantum environment. So imagine that you have a quantum computer with ex power, how can I use that power to create my own cipher, then will I put in my chip? And those things are already in place. So if tomorrow, anyone in Germany or IBM has a quantum computer, by the way, it's already some cooperation between IBM and WISeKey on that, we can immediately take that power and create our next-generation chips. And chips needs to evolve that way, right? I mean you have to be conscious that this is exponential. Humans, we are lineal, so we go step by step. Technology is exponential. So technology will be much smarter and faster than we are very soon. And we need to design that world, how it's going to look like the [ world wide ] technology is going to be smarter than we are, more disruptive than we are. So this is some examples we're going to run now. This is by WISeKey operations with a medical company. So it shows the microchips, how those microchips are integrating. And this is HID, OMNIKEY. So this company, it's a major buyer of microchips and they use that in the medical environment. Those are health cards. The microchip is a WISeKey Microchip and the security identity into that microchip is a microchip of WISeKey. I mean you can put that technology into any smart card. One of the things those chips are is NFC compliance. So NFC is near field communication. So you just put near to -- when you pay a MasterCard in your coffee, you're using NFC technology. So this is one area which is going to grow very fast, especially now with the COVID situation. The health sector are realizing that they are actually very old. The health sector, it's still on the previous revolution on the Internet. And COVID has given them a possibility to go to a full digital transformation of the health sector. And this is going to be a massive business here in the United States for next year, which is how can I secure my instruments. I mean imagine an insulin pump that is saving your live and a hacker can shut down that pump remotely, or imagine a hospital and could be totally encrypt -- they will encrypt their data and they could not use their data anymore. So hospital security is going to be massive requirement and the connected devices that hospital use, they are maybe 1% of them they are connected. They are not yet connected. So those devices are not smart and putting identity and putting microchip on those devices are very important. This is only a mental picture on how the company is evolving. A few years ago, I will put cybersecurity as my major driver. Now cybersecurity is embedded here, but we are moving towards generating high-quality data. The companies of the future will be the company with data. Microsoft is a data company. Google is a data company. Amazon is a data company. Facebook is a data company, right? How they got the data? Different ways, one of them illegal, by the way, but they are there, right? The capitalization is there. So how to get into the data and being able to provide the best quality neutral data, which is respectable to your -- as a human user capability is going to be essentially in the future. Today, and this is -- I will give the floor later to [ Terry ] and he will explain you what [ ARHT ] Media is. But in the vision of the platform effect -- again, when I talk WISeKey as a platform, what is it exactly a platform? So platform is like a narrow port. You go through, you show your ticket, you show your passport, you go in the line, you clear your goods and then when you are inside the area you are trusted. Everybody you know -- like we know here that nobody has COVID because we were checked now. The same thing happens in an airport. You are inside an airport and you know that nobody has weapons, nobody can kill you, right? You are in a trusted area. Why? Because you have the check and balances before getting into that area. The Internet doesn't have that. The Internet doesn't have a secure area. The Internet has places like, wow, you have to be careful who is there, right? So what WISeKey is creating is that airport effect on the Internet. So when you enter into the WISeKey platform ecosystem, everything in that ecosystem is trusted. Means that we have been checking the objects before getting there, we have checked the people before going there, we have checked the processes and even the documentation. And once you are in that area, you can do business, you can do whatever you need to do faster and in a more efficient way that you yourself have to create that trusted area. So this concept of a trusted area, trusted platform of Internet is winning. And why companies want to do business with us? Because they don't want to do themselves. I mean even a very big company. When we go talk to Medtronic, we go talk to BMW or Mercedes Benz and they're using microchip, they are saying, "Hey, I'm not going to build an entire platform for me, I want something I can plug in, and once I am connected, I benefit from everything you guys did. I don't want to develop my own AI. I don't want to develop my own blockchain. I don't want to develop my own cybersecurity and so on. I just want to plug and play." It's like the electricity, right? You just plug, you don't have to worry where is the electricity provider. So that's where we are moving towards, a plug and play, secure Internet, where you plug into it and the platform will do the work for you, and you don't have to worry anymore. So in that vision, obviously, and COVID has accelerated that, is people interactions. How people in the future will interact among themselves? Will they interact by coming physical to this room, as we are now, or via videoconferencing or maybe we don't need to do that anymore. Maybe we can do it through holograms. So today, and this is going to be the first time ever, I think, in the NASDAQ, we're going to be doing that. We are going to be connecting a person in Paris, which is the CTO of Parrot, which is a very famous drone company that use our microchips. Parrot uses the microchip inside the control command on those drones as a way to avoid that the drone could be hacked. Drones are weapons, right? I mean you can weaponize a drone. You can send a drone against a plane or crash a drone in an airport. So it is essential that the control of the drone is 100% under the control of the user, authorized user, and that's what the WISeKey provides on that technology. So today, with the cooperation with our media, we're going to be beaming from Paris, the CTO of Parrot, and he is going to show us a drone in that box. So this is like a magic box, so he will appear inside that box. And that it's actually the concept of the platform. In the future, that box will be thousands of that boxes around the world, will be on shopping malls, will be on airports, will be on World Economic Forum in Davos, we will demonstrate that. That means that I don't have to travel. I could organize a what we call Holograminar, which is a combination between webinar and holograms, anywhere in the world in a 100% trusted environment because the hologram connect through the WISeKey platform. So what WISeKey does there? WISeKey checks the identity of the person. I want to be sure that the guy is going to appear is actually from Parrot and is not a hacker from North Korea that is going to get into the line, so verification of identity is essential. I want to encrypt the line, so all the information that he's going to tell us and -- or we going to tell him is encrypted and cannot be hacked or used outside the trusted environment. I want to give the impression on this person is here. So the human interaction is so funny because we have done that in several places, including with robots. And at the beginning, it's kind of weird. But after 5 minutes, you get used to it. And after you have a normal discussion, as we could have you and I, just by looking at our eyes. So human brains are very fast in adapting to this technology and getting the impression that they are really talking to a person. So this is the idea. The idea -- and this is where it will be very interesting times for WISeKey next year, is that a lot of people with innovation, they are coming and say, "Wow, I mean, you did already the platform. I don't have to bother anymore. I just want to connect my robots. I want to connect my pods. I want to connect things into that platform. And you guys -- you will do the security part of it. We'll do the user engagement part of it and the expansion of it." So this technology is actually being also used on physical environment, but also in a virtual environment. It means that we could do this event altogether like in Zoom. But rather having a 2D, we will have a 3D environment and is a very, very cool process. Anyway, I'll let [ ARHT Media ] to explain you that later into full details. Another interesting thing, and this was my last year or last year investment. You have been following Elon Musk's strategy going to the space with the interconnection between satellite. Space is the last destination. I mean space is where we're all going to be very. I mean we are just -- space now is what the dot-com was in 1999, right? We are at that moment, where some people are creating some application, sending some satellite. But in 25 years' time, this space is going to be amazingly disrupted. Everything will happen on space, not only satellites, but also medical companies will test products in the space. Space is the final destination. Why? Because it is so easy to communicating in space. You don't have the gravity issue. So everything very heavy is very light. Security is there because it's very hard to hack the space communications. But space was very expensive. I mean if I want to send my own satellite 5 years ago, I have to pay $100 million, just to do it now. So we wanted to have our own picosatellite, which are IoT satellite. The vision was that if I have 1.6 billion chips already in object and I need those objects to send data real-time to see whether the object is working or not, I'm not going to do that through the Internet. It will be impossible, right? What you're going to use? 4G, 5G? Are you going to use LoRa? Are you going to use Sigfox? Too expensive, too cumbersome, it won't work. So the vision is, what about if we do it through the space? So we invested in a company in Madrid with a name FOSSA, took a participation last year. And we launched -- actually, we are launching -- on the 10th of January '22 with the SpaceX, we are launching our first constellation of picosatellites. So those are not satellites to broadcast, images or videos. Those are very tiny satellites. They are like a box, imagine like a shoebox. This is the size of it. They are very light satellite and you can put over 80 or 90 satellites in each of the models of SpaceX. You send to the space, opens in the space and they create a constellation. And that constellation captures the signal from the chips real-time. So if I have a WISeKey chip with a container in the middle of the sea, no way to connect for supply chain, logistics, for instance, or providing data to customs that this container has not been replaced or cybersecurity on the containers not being violated, that data goes through the satellite. So WISeKey will be the first IoT company with chips with his own satellites. And the deal is done. SpaceX is sending that. The name is WISeSAT. Actually, it has a special side with name WISeSAT.Space. And suddenly, we started to get totally new set of application. I got the agricultural sector, calling us, "Wow, can you provide front space, traceability of olive trees in Spain during winter, because olive trees needs to be monitored, that they are not sick." And if one gets sick, everything gets sick. And they need to send that data real time. And if you have a satellite, agricultural traceability will be so important. So we did actually a pilot project, putting chips on olive trade and then analyzing the data, and then we'll go to satellite. You can put it on anything. You can put it on your dog. I mean you can put those chips anywhere and the satellite will trace you back. So it will be like those apple tags and you put down things, but you have to wait somebody with an Apple phone, be next to it. There is no need anymore, that will be through satellite. Now again, my thinking always WISeKey is to be on areas that I think will become in the future disruptive, and I don't want not to be there on time because then somebody will be there and I will be dependable of that company. So the same vision of Cryptographic Root Keys, the same vision of microchips. I want to have my own microchips in the company. The same vision with satellite. Why? Satellite is in the future. That's why Elon Musk is putting so much money on Starlink and everything he does on the space, is because satellite will have gates. You will have gates. You'll have a China gate. You will have a U.S. gate. You will have European. And if you are not a gate, you have to queue to have your applications into satellite. So having a gate, having a satellite access, even if it's -- people would say, well, are you really serious in satellite? I say, yes, I am because I want to have that level of control on my platform. I don't want to depend on somebody else. So this is a big industry, those satellites actually aren't expensive. You can -- contrary to the $100 million investment, those satellites, I can put a company satellite constellation for less than $2 million. So we can put an entire constellation. Minimum is about 10 satellites to cover the entire earth. More you put, more sharp the signal is because more time you cover. So we will be partnering with partners, logistic partners, transport company, DHL, kind of FedEx. These companies all of them, they need that, too. And it's a way also, although for a moment, SpaceX is saying to me, "Okay, maybe you are a competitor too, but we are going to send your satellites." So they are playing fair with us now. But again, I already thinking maybe 1 day, they're going to say, "Hey, you cannot use the SpaceX anymore because you are competing with us." So we are obviously signing contracts with another start-ups, which are building their own transporters in New Zealand. In Spain, in Huelva, there is a new company developing their own rockets. And actually, that's another area that we are looking in the future because you need to have the transport of your satellite to space. Otherwise, somebody can say 1 day to you, "Sorry, I don't want to send your satellites anymore." So this is the thinking process of being able to expand the platform. So although we're going to make a demonstration later, just to think in terms of how things get together here with the blockchain technology because we were starting to store data on ledgers -- for people that do not understand maybe blockchain just to explain that, blockchain cannot be controlled because it's totally decentralized. So the blockchain is a chain of blocks that integrates all computers than they are part of the blockchain. So more people get into the blockchain, more people buying Bitcoins, more people enter into cryptocurrency, more decentralized this becomes. And it's very trusted because every ledger has the memory of all other ledgers. So it's absolutely no way that can people can manipulate the data because that data will then be reflected in the other ledger. So it's perfect to store identity. I know that if I store my identity on a ledger that identity cannot be tampered, it cannot be manipulated, cannot be owned. So we started to play with that. We did a lot of projects with companies like CasperLabs, Polygon, and others, trying to understand what is the play between identity and blockchain. And it was a hard confusion because blockchain people are kind of dramatic. They say, "No, no, no, the only thing you can do is with blockchain, nothing else," which I actually am not in agreement. I think there was going to be a hybrid between verticalization because we are still a vertical world, and decentralization. And this compromises where we should be, and CasperLabs is actually a visionary on that. Because for instance, some governments, they're saying, "Hey, I don't want to go 100% blockchain. I still want to control my data, my identity. If I want to give a passport to my citizen, I don't want anyone in the blockchain to be able to do that. They need to ask me to do that, right?" So there are processes where the blockchain is good for decentralizing, but not for issuing. The issuing part needs to be done with cryptographic capability. So we started to -- what will be the ideal object that needs both, to have an identity based on cryptographic, delegation of trust and at the same time needs to be in the blockchain? And then we look into art. We look into the market, which is phenomenal. I just came from Miami or Art Miami last week, and it's an explosion going on, on creativity, on an industry, which was not properly represented on the Internet. Internet was full of gigs and financial guys and politicians, but no artists. The artists will never use the Internet, right? So now the artists are discovering the Internet, which I think is phenomenal because the artist will bring the design, the creativity, will bring another dimension of our brain that has not been exploited yet. And suddenly, they have a problem because when I talk to them and say, "Look, I have a $5 million watch or I have a $10 million painting, I want to establish a relation between my physical object and the virtual twin, the representation of my digital twin, how I do it?" So then we say, "Okay, actually, we know how to do it because we can put technology on that object through microchips identity that makes that object unique" because WISeKey has a huge track record on doing that. In Switzerland, 10 million watches in Switzerland have already a WISeKey certification either with microchip with the smart card, Hublot, BVLGARI, all these very big brands, [ Jacob ]. They have been working with us. So the thinking of, if I have already the technology to certify an object and then I can create a digital identity, which becomes the digital certificate of the object on the metaverse, then I have both, right? So we did it. We entered into this NFT world. If you check the share of WISeKey in April, they went ballistic, went 200% up because we announced actually now as cybersecurity company was entering into the NFT era, and that created a huge attention into the market because everybody is concerned that the metaverse that everybody talks could become just an extension of the issues that Facebook is having now. Facebook now is meta.com, but basically what it is, is that all their issues on privacy, on creating misinformation is going to be aggregated and accelerated on the metaverse. It's going to look better on the same problem, right? So obviously, there is a time now to reset back and say, "No, guys, the metaverse cannot be the same problems that we have on social media, just augmented by the capabilities of the metaverse." The metaverse needs to be contrary -- and by the way, the metaverse is a blockchain notion. So it's very interesting that Facebook took the metaverse. Blockchain is nothing related to Facebook. But obviously, they did because they realize that the Facebook -- the blockchain community was getting organized and the metaverse could become the first truly decentralized environment, where we could do everything in the future. Now that fraction -- friction between a centralized metaverse, which is Microsoft, Facebook and any other platform that they just want to keep their monopoly process on the Internet, they are now just telling the users, "Hey, I can be your gate to the metaverse," but they don't need to be. I mean the metaverse can be accessed by just minting your objects on a blockchain in a total decentralized way. So we developed this concept. We developed a platform with a name WISe.Art, which is it's like a marketplace, it's like Amazon of NFTs. You create your NFTs, you mint it on and you sell it. And we have done several tests this year. I don't want to necessarily become a marketplace because that's a different business. But I wanted to develop one with our technology, so we can white label together with partners. So what we are doing now is talking to our partners, watch manufacturers, hotel chains, and they are -- they want to get into the metaverse, on their own metaverse and not through the metaverse of the social media companies, and there is an option for them to do so. The platform is fully operational. It's going to be demonstrated today at 2. We are partnering with Casper on that, which is an amazing technology play, and that's very exciting because we have now museums. I was in El Prado, in Spain. I went to the Louvre. I went to the Vatican. The Vatican, 80% of the art of the Vatican is on boxes. And I said, "What about if we just bring from the box to the metaverse. And then with that experience, because where people will pay, you can refinance maintaining that patrimony," which is massive, and they cost them a lot of millions of dollars per year just to maintain that art. So imagine MoMA, imagine anything that needs to move to the metaverse will do through the WISe.Art application. Now inside the metaverse, you then -- by the way, just to show you how crazy we are on innovation, what we did actually is in January, we are going to be issuing an NFT directly from satellite all the way in Davos. So that will be a world-first in Davos. Nobody had done that. We are -- once the satellite is launched on 10, the 17 is Davos. And on the 17, we're going to initialize a connection from the satellite to a WISeKey earth station, where we're going to be minting a NFT directly from satellite all the way down. So in the future, you could reverse the logic. I would say, you could mint from the space all the way down to earth. So this is kind of things that we like to do, integrating technology. So in that vision of the WISe.Art, so this is WISe.Art, you can check online, WISe.Art, platform WISe.Art. And here, we have done -- this was the original -- it looks very ugly watch, but this is the original Hublot #1, which was the watch owned by Jean-Claude Biver, which is founder of Hublot. He sold his company to LVMH. And this piece of watch, which was the zero, was the -- he calls that the [ Etalon ] of Hublot, was the watch that has inspired the entire Hublot collection from there, if you realize any Hublot watch looks very much like this one. So we did the world-first NFT that was covered for New York Times. There was a huge amount of support. Then obviously, the cooperation with CasperLabs, which will be explained later, we have with us, the CEO and Founder of CasperLabs, and that will be an amazing talk later. And the idea is to help the entire industry, who says NFT doesn't mean only art, things like intellectual property are being uploaded to the blockchain, things like transactions, obviously, new cryptocurrencies, everything is being uploaded now. And as I mentioned before, we have 1.6 billion objects with chips. How many of them, this is the analysis my team is doing now? How many of them they are NFT-able? I mean can we convert them in NFT? So we're going back again to the company and say, "Okay, can we do a drone NFT?" I don't know. Maybe we can, maybe they are objects we cannot. But actually, the answer we are getting is say, yes, because if you do an identity NFT of an object, it becomes eternal. It can never be modified on the blockchain. So it's the perfect destination for any manufacturer, anybody that has a serial number, any luxury company that has expensive garments, and they have just an NFT cats join, all that can be NFT-able and put it -- and more things go into the NFT, bigger becomes the metaverse and becomes an authenticated metaverse, under the user control. So here is a video just showing the next-generation metaverse. So this is done. I don't know if you guys know Guernica, I'm sure you do. This is the largest painting of Picasso. Picasso, a Spanish painter. During the second world war, there was a village in Spain with a name Guernica, that was bombarded by Nazis as a way to test their bombs before they attack the rest of the country and the entire population was destroyed. Picasso got inspired and he -- I mean Guernica was here in New York for many years and afterwards was sent to the Spanish Museum. It is the Spanish masterpiece. This is -- I mean it's like the Gioconda of the 20th century. Anyway, that's an NFT. So what it is, on the top, on the certification of the Guernica, you have now a video. This was done by a famous artist with a name [ Sandoval ]. This is the artist. And that video represents the story of the painting. I mean this is on creation. And it's very powerful. I mean the music is extraordinarily powerful. And what you're going to buy, the person buying this, there's obviously not buying the Guernica because, first of all, the Guernica is not for sale. And if you will buy the Guernica, it will be billions of dollars, right? The buys the representation of the video that then becomes owned by the person that has acquired the NFT. And the NFT has a certificate that proves that, that person is the owner. So some people don't grasp the -- what is an NFT is and they say, "Okay, but I don't get the original. Why has any value of the digital team," but actually has a huge amount of volume. The NFTs are now, for instance, let's say, that I buy the NFT of that watch. Biver didn't want to sell by the way the original watch. It was his original, but he sold the NFT. And the NFT has what you call a smart contract. And in the smart contract, you define what are the rights of the user buying the NFT? So for instance, in the smart contract of Biver, he say, "If you want to create a hologram in my living room of the -- imagine you have a nice house, huge living room, you want to have a 3D hologram of a beautiful watch that is yours, another watch by the NFT. That hologram, if you touch the hologram, there will be a certificate say, that NFT belongs to you." And this is revocable, it's on the blockchain, cannot be manipulated. And because the technology is evolving so fast, and you can see now with holograms here, in 10 years' time, the visual representation on NFT is going to be mindboggling. I mean NFTs will be in the middle of Times Square, floating around. And that NFT will be the property of a person. So all the royalties on those representation will be paid for the person that acquired the NFT. That's why NFTs are becoming. So when somebody pays $60 million for NFT, people say, "That's crazy, how are you going to pay $60 million for just a bunch of images?" But those images are going to evolve with the technology, and this owner is the perpetual owner of that technology. That what makes that technology so unique. So now artists are coming. Just to give you an idea, again, because this is -- the idea is also brief. The investor community, the company is trading $100 billion, right? The only thing they have is a marketplace. This is actually what we have. So people are willing today to pay $100 billion for a company that doesn't have cybersecurity, doesn't have microchip, doesn't have any of that. The only thing they have is a marketplace, but it was one of the first marketplaces. So being on this NFT is very strategic, and this is an area that WISeKey is there. Now why we believe we're in a very strong position. And it's because WISeKey managed to patent a process of, and this is a U.S. patent, of method and apparatus for the digital authentication of valuable goods. We did that during the time we were certifying watches and jewelry and things like that. The idea was that if an object is represented on the Internet, that representation needs to be done through this technology, and therefore, we got it. So we got actually that patent. And that patent is very powerful on the NFT. Actually, we just announced that we registered a new patent on WISeKey on moving from that physical object to the valuable representation on Internet, all the way to the NFT. And this is being filed. And this is an area which I think has a huge value because if we move into that direction, WISeKey is going to be a patented way to generate trusted NFT through a platform, the possibility of increasing the value of the companies are enormous through that patent. WISeKey also sits in a huge amount of patents, which are related to the microchip technology, design and microchip functionalities, which are to be aggregated. So this is the way it works. So let's say Hublot -- I mean, you saw the ugly one before. So that's the new representation. This is the new generation. So these watches have a number, always a serial number, which is produced by the manufacturer. What we do, we take those numbers together with the design, whether it's gold, jewelry, whether its diamonds. And with that, we create a unique identifier, a certificate. And that certificate is what moved from -- that certificate, which is recognized by the -- any browser or any operating system because the Cryptographic Root Key is already installed, from there, you go all the way to the NFT and you create your NFT. So we can basically create 1.6 billion NFTs. And that's the offering we are doing with companies. Now we are saying to them, "Okay, you want to certify your object, what about if we create the NFTs at the same moment? You don't have to bother any more about it. You don't need to sell it." And the idea of the platform is not to sell it because a lot of people are saying, I want to create a NFT, but I don't want to sell it because I know that this is an NFT in 10 years' time is going to value a lot more. So what the new offering we are giving to them is say, "Okay, you can create your identity of the object, and automatically, we will issue an NFT at no further cost and we will put the NFT in our platform. If you want later to move to your own platform or you want to do a deal with us on white label, that's okay." So this -- again, if that will be a painting, the market share will be embedded physically in the painting. We're actually working with insurance company now that they have the problem to ensure a very expensive painting. And insurance company, they have to do all the work of traceability back to the painter, the provenance, which is very complicated, because you can certify the wrong thing. So once this work is done, all that information they collect is digitalized and encrypted and is stored in relation to the digital certificate that goes inside the painting. And then the painting generates that certificate. And that certificate is then stored in the cost per blockchain. So that's the process straightforward. I mean now it's just a question to get more and more museums, more and more art galleries that they want to do. We're also working with -- there is a vision of the screens now, those screens are very low cost now, right? And the quality -- and you can put that in an entire building there. So we are talking to airports, business model areas, and they are saying, will you be interested to sell your NFTs into shopping malls, airports. And then I go with my mobile phone, imagine that this is the Mona Lisa painting. And just by putting my mobile phone next to the screen, I will be able to extract the key from the screen into my mobile phone and buy the NFT, or if I am an owner of the NFT, I can rent the NFT during an exhibition. Let's say that NASDAQ wants to have a party with all the screens, all the screen will be showcasing NFTs, and those NFTs will pay to the artists a royalty for the display that day of the NFT. So that is where we are moving. In the future, everybody has very high-quality screens in the house, rather of having Idol or with Netflix image, you would like to have a beautiful art that you don't want to buy, but you want to rent and you are basically connecting to the WISe.Art platform and extracting them and projecting. So that's the back end. So this is the data we collect. And that's the beauty of that, right? Always remember the data aspect of it. For us, the division is we enter into this because this is collecting a lot of information that we can then use to provide analytics. For instance, the art business is very dark business. A lot of art business is done on the dark web. People using art for money laundering. WISeKey is actually very focused on making sure that this doesn't happen. And this is a great way for us to monitor all the transactions. So this is 2022, and this is -- this is today first time we present that, especially in the NASDAQ. Our vision was, okay, because people are coming to the platform, they need to buy and sell NFTs. I want that to be ultra-secure, trusted. But what about if they are buying with Bitcoins or with other, I will call it, anonymous cryptocurrencies? The problem with Bitcoin -- Bitcoin is great, right? I mean, I have it, my son have it. I mean, it's a great thing. But when you are using Bitcoin for mainstream transaction, that's why governments are concerned about it, that's why banks are concerned about it. One of the problems of the Bitcoins is, it's anonymous, right? No KYC. No -- I mean, you open a bank account, you have to show your passport, you have to show your salary. I mean there is a process of authenticating yourselves towards the trust provider. That's not the case on blockchain. You can open a wallet and you become anonymous, and you can do transactions. So what happens is a lot of dark money goes into the block -- into the dark web, and then that black money could be used to buy an NFT and do money laundering through that process. So we have the United Nations, the International Red Cross coming to us and say, "We'll love to do NFT, but we have to be 100% sure that the money that is being used to acquire those NFTs from us, because they are international organization, is clean money, cannot be money that came through non-authenticated sources." So what we did is say, "Okay, we will create our own currency. We will create our own crypto." So this is happening this year. We are -- next year '22, we are doing that in Switzerland because now the regulatory environment in Switzerland is very open to that. So WISeKey is creating what we call a TrustECoin, which is a cryptocurrency that you will use inside the WISe.Art. So let's say that I want to buy the Picasso NFT, $300,000. I have a block -- I have a Bitcoin wallet, I will, in that process, provide KYC to the platform, convert my Bitcoins into TrustECoin, do the transaction inside the platform, buy and then go back again into Bitcoin. So it's -- we are not forcing the people to stay in TrustECoin, but we want them to do it during the process of doing that. It will be another area, which will be a anonymous area. You can still do it with fiat, or you can still do it with Ethers and other. But this will be for NFTs and they are not -- our clients do not put that obligation to have KYC process. So this is interesting for WISeKey for several reasons. Why is bigger becomes the NFT marketplace, bigger becomes the coin, right? The coin grows with the volume generated. So that's one area. Second area is that we educate the market to go to KYC, which I think is essential for cryptocurrencies. I think the anonymous cryptocurrency world is fun to have it, but when you're talking about big amounts, it becomes more and more complicated. So it will be important that they apply the same regulatory processes that you have here in NASDAQ or you have in a bank. And third, we will also position -- Switzerland is a very interesting country. Actually, CasperLabs is actually also in Switzerland. A lot of the blockchain company has selected Switzerland because the cryptocurrency legislation is very open and it's a friendly country to develop these kind of models. So I give you some indication now about -- sorry, question time? How are we? On time? Sorry? Okay. So I will just close here. But this is a position on the arago HIRO, which is the automation software. This is the one that empowers all the data analytics. And this is the position of arago in the automation leaders, right? So the company is already entering -- this is the company that consist and compose those leaders. And the company is entering slowly into that process. So we are at the same level that the Microsoft is in that process. And this is now we are entering, but I'm going to give the floor now to the next speaker on that. So we're going to be entering into the financials. Okay. So what I think -- first of all, thank you for -- it was long. Thank you for your attention and time. We go through the agenda, and we are ready to, 12, right, is the -- now is Richard. Yes, exactly. Yes. Okay. So just to introduce Richard. Richard is our Head of Sales for North America, and he's handling the major accounts. So he will give you our visibility of the business in the United States and also give you some indications where we are progressing and which account. Richard floor is yours.

Great to meet you all. I'm the U.S. Sales Director. And I'm going to be talking today about some developments in the U.S. market. We are announcing today that we're celebrating 15 years of collaboration with Cisco and 100 million units -- chips shipped, which is quite an accomplishment for us. We'll have a press release going out on that today. And this year has been quite a story. We are delivering 2x the forecasted demand we had in the beginning of 2021 now. And given the market constraints that we find ourselves in, that's quite an accomplishment and is an accomplishment not shared by every other vendor out there. Now Cisco uses our secure elements, along with our VaultiTrust secure provisioning to enable secure authentication of the router, switchers and other electronics. The demand for these parts continues to grow for us. We have a fantastic year already next year. And to support that growth, we're also opening an additional second site to help us deliver more to the demand that Cisco has for us. Now that's not the only story of Cisco. This is talking about our current products. We're also actively engaged with Cisco on introducing new WISeKey technologies that haven't used. So stay tuned. The story with Cisco continues to grow. And I think it's going to be a very exciting one. So next, I'm going to talk about global home health care and land mobile radio. So smart home health care, global home health care is really an intersection of medicine and IoT. The market is expected to grow rather significantly and globally, reaching almost $109 billion by 2030. And North America shares a significant portion of that, up to $40 billion. The growth is due to a variety of factors. One is the technology, is now at a stage where it can be done from home. In addition to that, there are a multitude of in-home needs. For example, the geriatric. There's a rise in geriatric population. There's a rise in chronic diseases. And there's also a demand for less expensive health care. And I think that is certainly the case in the United States, and it will be spreading everywhere. And in-home remote care enables that possibility. Of course, the pandemic also played a significant factor in this and really accelerated the move to this market. So the biggest concern both by patients as well as providers are patients' privacy. And that's where WISeKey comes in. WISeKey security enables this to happen really. Now one announcement will be going out is that we have a Tier 1 medical provider, one of the big names, who selected to use our VaultIC420 on all of their remote in-home health care products going forward. They'll start ramping midyear next year. And frankly, the outlook for that market space looks quite promising. And the main reason they're using us is simply to protect the private information of the patients. And they're doing that. One of the things that enables that is our certification, our security certification, in particular, FIPS 140-2 in this case. That provides a couple of benefits. One, the security itself that the patient information won't get exposed. But in addition to that, because these products are certified and registered on the website, it's given the company's the strongest stamp that they've shown. They've done their due diligence that they're delivering the best security that can be done. So it protects liability of the providers as well. And it's worth noting that FIPS certification is different than FIPS certifiable products. And many of the other competitors in the market have certifiable products as opposed to certified products. Some marketing twist, but it makes a big difference. So land mobile radio. That's another exciting space for us that's growing. We're looking at $16.2 billion market by 2025. There are a multitude of factors also driving this market. This has really started post 9/11, but it's continuing to grow now, increased demand for an expensive reliable products. One of the largest factors is transition of devices from analog to digital, that also helps with the aspect of delivering more security. And WISeKey is particularly positioned well to address this market. We have solutions that are a small fraction of the cost of doing it in home. Most land mobile radio companies have done this work themselves. They take them the design. They've taken it through the labs to get tested. They go back and forth a few times. This expense at the labs is maybe $100,000, over 6 months long, but they have ready-to-buy solutions from WISeKey. And our solutions, one of the unique factors is that we're FIPS 140-2 Level 3 and Level 2 compatibility available on a single chip. So some of their end customers have different requirements. Some need Level 2 only, some need Level 3 only. And they can do -- they can satisfy this need with 1 chip we're providing. I would also note that we're -- we believe one of the first to market with FIPS 140-3 Level 3 coming out as well. We are compliant to the industry standard for this market, P25. And then our solutions also are beneficial to the land mobile radio space and that there's less parts required. Lower -- our solution is lower powered and a smaller space. So we have business 1. We're shipping units now already with a large leader in this market, and we're actively engaged with 2 other of the leading market providers in this space. So it promises to be a good year for us going forward. All right. So in summary, we've had a lot of good revenue growth in our traditional spaces, networking and communication, industrial, drones, POS terminals and gaming. And we have significant growth expectations in the global home health care market as well as land mobile radio for this year. All right. Thank you.

Thank you very much, Richard. So we are going to deep dive a bit more now on the financial performances of the company. We have some analysts with us today. So I would like to introduce you, John. He runs with Peter Ward, which is our CFO. He's not here with us. He was not able to travel, but John is representing him, and he will give you a good update on the financials. John?

Good morning, and thank you, everyone, for your time in joining us today. So I'd like to now take some time to run through some of the highlights of WISeKey's financial performance in FY '21 and provide some additional clarity around the outlook for '22 and beyond. I'm going to start by talking through the 2021 year-to-date performance. As a reminder, any 2021 figures are unaudited and our last publicly available financial information with the interim statements for the 6 months ended 30th June 2021. Those were, of course, reviewed, not audited. The last audited information is to the 31st December 2020. So as of September '21, we've recorded revenues of $15.4 million, which is an increase of 34% year-on-year. This growth is largely driven by the HIRO AI business and by resurgence in demand in our IoT business. Following a very difficult 2020, where the pandemic heavily impacted demand in the IoT segment, we have seen a return to pre-pandemic levels of demand and in some cases beyond that. The U.S. and EMEA are our 2 largest sources of revenue for the group. North America is responsible for 60% of our half year revenues in the IoT segment and 90% of our AI revenues come from EMEA-based clients. As I'm sure you're all aware, the actual restricting factor on our growth this year and the revenue delivery is actually the global supply shortage around the semiconductors that form the base of our products. Like many companies around the world, and I think this is very well known, we've been impacted by limited volumes of the supply of raw materials. And this is actually the key item that has limited the balance in our revenues in '21. As we announced recently, we expect our full year revenues for 2021 to be around $20 million. But based on the orders we've received and the demand from our clients for deliveries, we could have been stood here talking about something closer to $30 million, rather than the number we're going to have, had the supply issue has not been in place. I'll come back to this challenge again when we move on to the outlook for 2022. Despite this, our full year forecast shows growth of approximately 32% year-on-year, and we're working with our suppliers to see if we can pull some of that revenue into 2021 and achieve a higher figure. If I move on to some operational cost comments. We do continue to invest strongly in research and development with $2.1 million being spent in the 6 months to 30 June 2022. And that despite us having identified an opportunity to save a relatively significant amount of costs in one arm of our research and development, whilst allowing us to refocus on the software components that form the USP for IoT products. And again, I'll come back to that in a bit. As we announced in 2020, we did take a strategic decision to invest heavily in our sales team, and this is reflected in the $500,000 increase in our sales and marketing spend in the first half of 2021. This was mainly due to the hiring of resources in the U.S. market, where we had previously only counted 2 people on our team. This has increased to 5 by the end of H1, including the hire of a specialist in the AI sector to reboot the HIRO sales operation. And we also increased our European team by 2 in comparison to 2020. These investments do look like they've started to bear fruit with the increased order book and opportunity pipeline, as Richard has just himself given an overview on. Finally, our G&A costs have increased year-on-year, but this is largely driven by the incorporation of arago into the figures following its acquisition with $3.2 million being directly related to this. As I'll touch on again shortly, we've spent a lot of time reviewing the expenditure of arago, review to restructuring and consolidating optimizing the cost base, as we felt there was quite a number of savings that could be achieved without impacting upon the performance of the business. The last factor impacting our G&A expenditure were the legal costs related to the arago acquisition and the subsequent restructuring work that we've been undertaking with the arago business. Moving on to the balance sheet. And again, a couple of items that I'd like to draw attention to. Firstly, we retain a very healthy cash position of $33 million at the end of Q3, a position that has been largely sustained through to today and a significant improvement on the prior year. This cash position means that we have reserves available to make key strategic investments quickly and also that we can finance our business units for the foreseeable future while supporting and developing our revenue generation in the AI and NFT segments. The value of the intangible assets and goodwill on the balance sheet have increased significantly, and that's as a result of the acquisition of arago and the trademarks and the HIRO technology acquired with arago form the increase in the intangible balance. The final significant movement on the balance sheet that I'm going to just draw out is the increase in the balance of our convertible notes, which relate to the issuance of 2 new convertible bonds for a total of $22 million in June '21. In the time since we issued those and since the interim statement, this balance is reduced down. We now have an outstanding of roughly just over $10 million. And under the terms of the agreement, we do have access to a further $11.5 million under those bonds. So we could draw down should we need additional cash. Okay. So I'd now just quickly touch upon a few operational highlights and give a bit more information on what I've just discussed. So as I said, firstly, we continue to make significant R&D investments and our spend in the first half of the year supported some key stepping stones in our ongoing development, 2 of that I'd just like to draw out. So we had the development of the WISe.Art NFT auction platform in conjunction with our friends at CasperLabs, who are going to present as well this afternoon. And a product for which we have, as Carlos mentioned, a patent pending and that would potentially add to an already extensive patent portfolio that we hold. And then also, we achieved the launch of the FOSSA picosatellite as part of the WISeSAT venture, which will enable us to support the global decentralized IoT communications, a project that is building towards commercial deployment in the second half of 2022. Again, as I mentioned earlier, we've increased our spend on sales and marketing to correct what we believe was an underinvestment in this critical area. We've brought onboard several new team members with extensive expertise -- experience in their fields of expertise. And then also, we've diversified our approach to selling and are building a range of sales partners and distribution partners globally. We've signed 2 agreements thus far, one covering Europe and India and a second that covers Southern Africa. Our partner covering the European segment has already generated 1 client, which is delivering about $1.5 million of annualized revenues that started being delivered in Q4 '21 and run through to Q3 2022, and we believe that should be recurring revenues and some growth there. Obviously, the benefit of this strategy is it enables us to tap into larger sales networks and provide access to a larger range of potential clients in markets where we don't necessarily have the size and the scale to expand operations ourselves. We also try to ensure that these arrangements are based on commission, rather than fixed cost to ensure that they're incentivized to sell our products and that we're not sinking cost with no return. During the first half of 2021, we also took a strategic decision to consolidate our research and development resources and concentrate on those areas that provide the WISeKey USP and particularly the software, the PKI, NFT and AI side. So we've signed a partnership with a French company, and we will work strategically with them on the hardware development side, and we will pull our resources, which has had the benefit of bringing some cost savings around about $1.2 million annualized, and it's given us access to a much greater pool of expertise when developing the new generation of hardware. This was again an area in which we didn't necessarily on our own have the size and scale to be able to realistically compete with the market lead in this sector. And so this is really again enhanced our reach. And then finally, following the acquisition of arago, we've spent quite a lot of time and invested funds in reviewing the business and investing in the restructuring and refocusing of the business towards the new future. The HIRO business was struggling after several years of underinvestment, which has impacted upon HIRO and the IP itself. So we've so far invested a total of $11.6 million into arago, including the original acquisition investment. And we've supported a significant reduction in the cost base as well as the repayment of historic outstanding payroll balances, which we've done without impacting the client-facing part of the business. So after those highlights, moving on to the outlook. So our expectation of the future -- well, following year a significant investment and strategic realignment, we now find ourselves, what we believe, ideally positioned for the future, and we have revenues that are going to be driven by 3 key pillars. The first of these pillars is what I'd call our historic bread and butter, which is the IoT and PKI revenues. Although the PKI business took a step back following the sale of the QuoVadis business. We've rebuilt this segment, and it forms a significant element of the proposition that we're offering to our prospective IoT clients as well as being a stand-alone product with the traditional certificate business. As referred to previously, demand for IoT product has been unprecedented in the last year and has reached such a point that we are now sitting on a backlog of noncancelable purchase orders totaling $33.4 million, and we're currently receiving about $1 million of new orders per week at the moment. So that's a growth, as you can see from the chart on the right, showing our noncancelable orders. That's a growth of 500% against the 2020 equivalent position, and it's given us a great building block that allows our sales team to really focus on developing prospective clients, new opportunities and hopefully future proofing the IoT business against any sort of any hits in demand from a single client when things bounce back to potentially normal after the pent-up demand and the supply issues go away. So we're expecting to see a big increase in the number of clients served by WISeKey in this sector by '23 and '24. As we've mentioned, the main constraints in our growth in this sector is the supply side dynamic and unfortunately, next year is going to be the same, we believe, and we're going to be operating at strict quotas allocated by our suppliers. We're in ongoing negotiation with them, and this is a constantly evolving picture. But as of today, we expect to be limited to a maximum revenue of $20.6 million in the IoT segment for 2022, which would be a growth of 25% year-on-year. But we're also optimistic this number will rise as our suppliers are able to provide us with increased allocations. We've already seen this allocation increase by about 10% in the last 2 months. So we're having very positive talks with our clients there. A benefit that we have seen from the current market conditions is that we've been approached by many companies, who have seen that allocations drastically reduced or even cut completely by certain large competitors, who have chosen themselves to focus on their biggest clients. So these clients have come to WISeKey where they themselves would have a bit more scale and a bit more size, and they believe they, therefore, would receive sort of a more bespoke service and get more TLC from us. But in turn, we've been able to negotiate long-term relationships with them. Just this week, we received an order of $5.3 million covering a 2-year period from 1 client and they've put a significant premium in there for any quantities delivered ahead of time over the next 2 years. So we believe, again, that, that will hold us in good stead and the companies will place more value on loyalty and customer service once the market conditions ease, and we believe WISeKey is ideally placed to take advantage of this. The second pillar for WISeKey's 2022 revenues is the HIRO AI revenue. We identified challenges with the client offering as it previously had suffered from a sort of a lack of investment as the company had been running out of cash before we acquired them. And through our investment, we believe we've now created a new proposal to be more attractive to our clients and can be offered in conjunction with our other revenue streams, which would support the cybersecurity process with early detection and immediate containment. It's a -- we believe it's a fairly nascent market. But from initial discussions with some of the current clients and some prospects, we received very positive feedback that it's an area of interest. Hopefully, as I'm sure you can appreciate, this area of the HIRO business is at such an early stage that we can't begin to forecast a revenue number. And yes, we would expect our new offering to start generating new revenues in addition to the current ones they have in the second half of '22. But given this is effectively a start-up approach and a significant transition phase, we can't provide any expected guidance here as the range will be just too wide. The final platform that we have is the WISe.Art NFT revenue stream, which is again an entirely new platform, for which revenues are expected to come online in Q1 '22 with the launch of the platform. Those revenue streams themselves will be split into 2 areas. Firstly, we'll be charging commissions on the sales that are carried out on the WISe.Art platforms. This will be a percentage of the total sale and will be negotiated, dependent upon multiple factors, such as a number of items being put forward and sort of the price points. But ultimately, that will be a relatively straightforward revenue transaction. And then secondly, we're offering for sale a white-label version of the WISe.Art platform that can be taken by clients that wish to have their own branded platform for auctions and sales. Here, we would generate a one-off fee for the platform sale as well as fees for setup and installation, and then there'll be ongoing hosting and maintenance as well as a support package with an annual fee that would go with that. Our intention is that with the hosting still being carried out by WISeKey, there would also be commission fees applicable to the sales on the platform. Again, this is an entirely new revenue stream. We're simply not able to provide guidance on our revenue expectations for 2022. We can say, we've got a lot of interested clients, we've got a backlog of clients looking to place auctions on the WISe.Art platform. And we've got clients who are discussing the white-label option with us. We'd hope they'll be able to announce something soon. But for now, we would again be looking at too wide a range to be able to provide any meaningful guidance for '22. So with the 3 pillars established, a very strong balance sheet and a return to strong growth that we believe will continue into 2022 and beyond, we think we're very well positioned for the future to take advantage of several growth opportunities, build on the revenue streams and continue our growth both organically and for acquisitions. And hopefully, we'll see this reflected in a return in the share price in the coming months. I think there was a chance for questions, if anyone has any after this. But for now, thank you very much for listening.

Thank you very much, John. So what I suggest is because we're going to be live with Paris at 12, so we move now to the next speaker. And after that, if we have some time for Q&A, otherwise, we'll do a bit later after lunch. So I would like to introduce you David Fergusson. David Fergusson is the co-author with me of The transHuman Code book. David has been working with -- he is also on the Board of WISeKey. He has a very strong financial background. And we have been working together in the last year since 2016 to position this vision, this is starting in Davos as the human in the center of gravity of everything on the Internet. So we wrote actually a book, even to the point to create some movement -- international movement. So I introduce you, David, and he will work you through that process and what is next for 2022, which is very exciting. David?

Thank you, Carlos. So I know most of you, if not all of you, are well aware of Carlos' exploits and pioneering what we today call cybersecurity. Of course, he's one of the creators of 1 of the initial cryptographic root keys. Carlos has been at the forefront of development, not only in the service offering, but also the application and alliance with other organizations, as we'll be talking more about today with Casper and Parrot. But Carlos has also been a pioneer in the global community, bringing cybersecurity into what was deemed to be an extremely important dialogue at the World Economic Forum. And it was there that The transHuman Code had its humble beginnings. For over 15 years, WISeKey has been hosting an annual meeting of the minds at Davos. And Davos, for those of you who have been actively involved know that it's a tremendous breeding ground. It really is an incubator, not only for the exploration around how we do best with what we have, but what can lie in the future for us. And so through one of these meeting of the mind assemblies 4 years ago, we began to talk about just a range of thought leaders that collectively we had access to. My initial visit to the World Economic Forum was, and it seems rather silly today, was to talk about how we were going to finance the fourth industrial revolution. As we can all see quite clearly, that's not a problem today. However, how we were going to govern the fourth industrial revolution remains a challenge. And so in that first initial assembly, we began to workshop somewhat subconsciously what has become The transHuman Code, which is really the ultimate conversation starter, the dialogue initiator amongst those of us that really have to be those governors. So in the absence of a global governor, the developers, the financiers, the -- even the users, we have to determine how we use technology for more good rather than for more evil. So the result was the introduction of The transHuman Code book in 2019 at Davos. And quite surprisingly, during our book launch event here in New York in June of that year, we were approached by an individual who asked if he could send 6 copies of our book to the Vatican. So why the Vatican? Well, it appears that while, to suggest that our current Pope is a minimalist would be an understatement, he has a strong interest in the impact of technology on people. And to that end, we found -- or Carlos and I found ourselves, together with 60 business leaders, spiritual leaders and finance leaders discussing this very subject of how do we ensure that we can keep the human at the center of gravity in the relationship with technology. And so we were all surprised, of course, that while -- during this pandemic period that we're still experiencing, there was as much embrace of the technological innovation that had preceded us. But more importantly, we were seeing such a significant acceleration of the adoption of many of the things that we were forecasting. And so when the Vatican reached back out and said, I think it's time, the border is open, the airplanes are flying, will you please come back? And so we were very thankful to be able to revisit the Vatican just 4 weeks ago and again assemble a group of individuals that we believe can have a significant impact on what's coming forward. And so Gil Amelio, you may know, has 1 of the former CEOs of Apple, credited with the rescue and returning Steve Jobs to the role that he performs so importantly over the last 10 years of his life. We had investors from across the world together with developers and applicators of technology. And we found that we are really in the very same position, but more importantly, that the awareness level of how we can band together, how we can collaborate for the advancement of more better technologies that can increase the contribution that we give and narrow that equality gap that has existed before the advent of the fourth industrial revolution, then we should do so. And so whilst Carlos and I, I think, both gave a tremendous amount of credit after our first book to anyone that's attempting to ride in or contribute to while maintaining a full-time job, we've committed to our publisher and to CNBC, who was in the midst of shooting what would have been a 12-part series for The transHuman Code when the world came to an end in March of 2020, we've committed to create even, in fact, a more diversified platform than what we had originally conceived. And so the code to the metaverse will be launched on January 19 at Davos of this year. We're excited to have our Chinese publisher together with us, very early on with The transHuman code. There was a commitment from CITIC, China's largest publisher, to buy the rights for The transHuman Code. They delayed beyond our comfort level given the pandemic. But then surprisingly -- surprising to our agent and all others, they published every word. And if you've read the book yet, you'll know that we're not always so complementary about some of the developments that have occurred in the market. But they believe that the conversation is important, so much so that we had almost 500,000 people joining us via live stream from China into the Vatican. And whilst it appears that we will not be able to have very many of our Chinese colleagues with us at Davos this year, we're looking forward to continuing that engagement using some of the exciting new technologies that are going to be demonstrated today. And so I think with that, Carlos and Terry, I look to you, are we ready to make technological innovation history? You're shaking your head. No, not yet.

Thank you very much, David.

My pleasure.

That was -- as usual, a great pleasure to work with David on different stages around the world. And after we introduced The transHuman Code at the Vatican, we got a very interesting reaction because in the United States, they confused The transHuman Code with Transhumance. And I got a call from Steve Bannon all concerned about what I was doing in the Vatican. And actually, I went all the way to explain to him in war room this emission -- maybe it's because -- maybe I say Steve Bannon. So anyway, so I appear in a war room, and I mentioned it was a great opportunity actually to explain properly what the book was all about and what is the objectives of putting the human at the center of gravity is all about. I think the fundamental -- and that's the reason -- I mean we're not a book writers, right? He's a financier and CEO of our company. But I think it was important to put the narrative in the right place because there is a very big confusion on the Internet on what the role of humans are going to be on the fourth industrial revolution. We are reaching a situation where, as I mentioned before, technology is getting exponential and is accelerating by the combination of technology, then increase the ratio of exponentially. And when you combine AI with blockchain, with data, with IoT, with sensors, all that creates the perfect storm towards a world that maybe we don't want to have. And that's where I think companies in the future -- and this has been really our vision, and it's actually important to say here in the Nasdaq that companies in the future shall not all be judged by the financial performances, but also by the goodness they do to the world. I mean when I talk to CEOs of companies and I asked them the question, are you really proud of being -- during 2 decades taking data out of people, selling that data, putting them in -- are you really proud of what you're achieving? Maybe you're a billionaire already. Maybe your company has a $3 billion, $4 billion or trillion market, but are you really doing something for the humans? Are we not becoming addictive to social media? Are not we endangering our kids and/or teenagers on this kind of mechanic way of using social media? So I think somebody needs to bring that narrative into the world. So we are moving the -- I mean we are in this generation where if we don't do the right things, we will be in trouble. I mean we have maybe only 1 option to do it properly. And that includes sustainability, includes the Davos movement. You see now young people challenging us to say, hey, guys, you're doing this Davos things for so many years. You're still coming here with private jets. Are you really serious of finding a better world for us? So I think it is our responsibility as companies, CEOs and listed company to bring this new narrative. That isn't only about making money. This is all -- this is actually protecting humans and putting humans in our top priority. So the companies of the future could be the companies then they will make money, but by protecting human, not by making detrimentals. I had some very interesting discussion with some extreme companies, and they are moving into the singularity. And then they'll say, but who cares about humans? I mean humans are breathing. Breathing is bad because you create CO2. So robots don't breathe. Let's move into robots. So this is kind of a stream view of being replaced is something that we started to cover in The transHuman Code to open the dialogue. And the good news is that thanks to David and the people that have contributed that dialogue is now there. So I would like to -- we are really getting on time to the hologram connection. I would like to just, first of all, to thank ARHT Media for their support. I would like you, Terry, to come into the stage and say a few words about your amazing company and how this company is actually disrupting the way people meet and the way people interact. So I would like you to say a few words, and then we will prepare ourselves to the -- to bring the city of Parrot from Paris directly into this box. It looks like magic, but it's not. We will be there. Thank you.

Happy Monday, everyone. Is today Monday? So I'm Terry Davis. I'm Senior Vice President with a company called ARHT Media, A-R-H-T. It stands for Augmented Reality Holographic Telepresence. And that's what we're doing here with this box configuration that's over here on stage right. We are based in -- corporately based out of Toronto as our corporate HQ. I'm based here in the New York Metro market. And interestingly, a couple of things that were said here before, Doug was talking about the conversation is important. Think about when you see what we do kind of think about it in those times. Also, Carlos mentioned basically about as a society doing the right thing. If you think about environmental, ESG sustainability, the carbon footprints and those types of things, kind of keep that in your mind as you see what we do. So what is it that we do? We beam people around the globe as holograms. I can only do it across the earth right now. I can't do it out into the universe yet like Star Trek, but we can do it around the globe. And essentially, what we're doing is we're taking technology to rehumanize. We're helping people have those conversations when they're not traveling. And why wouldn't they travel? They might have schedule conflicts. They might have -- maybe they just -- after with COVID, a lot of people just don't want to travel anymore. But the idea here is how do we deliver the human presence, how do we deliver the head-to-toe, full-body authentic organic experience of humans being able to still have those conversations? And that's what we're going to share here today. So I'm doing a little bit of a delay here because we're waiting for our talent in Paris to show up. So after all of the hard work that we go to the -- to put it all together, we still need the talent to arrive. And essentially, what we do is today, we're doing a filming in Paris. And that will be live and conversational here in New York. We do these all over the globe. We have offices in New York, Toronto, L.A., London. We just opened the Paris office. One of the things that we're doing is we are putting our capabilities into WeWork locations. So if you happen to be in a WeWork location, whether that be Seattle or Portland or San Francisco, whether that's Zurich or Geneva or Berlin, whether that's Melbourne, Sydney, Singapore, Taiwan, Beijing, wherever, you'll be able to actually film and/or display as holographic in those locations. But generally speaking, we do go to a lot of locations remotely. So Jason and I were just traveling the last couple of weeks -- last couple of days ago in the Caribbean doing remote filmings for clients and so forth. So just sometimes we go to them. Sometimes they come to us. So essentially, what we're doing is we're delivering this all through the Internet. Today, what we're doing is what we call a one-to-one, is 1, just 1 presenter into just one location. Often, we will do 2 to 4s and 3 by 5s, and we'll put multiple people together into this and maybe have different sizes and so forth. So I'm sorry?

Yes. We can do some Q&A.

You want to do that? Okay. So we're just waiting on talent to arrive, and then we will share with you a live interactive from Paris, okay, with Victor, I believe. Is that right? Okay. Thank you.

So we have a few minutes. Yes. You're...

For WISe.ART, can you guys...

I'm sorry, you definitely need a microphone. Everybody needs to hear you for the webcast.

Okay. I'm hearing impaired so...

Yes. Maybe if you don't mind, introduce yourself. We got open the door for Q&A. So you introduce yourself and your question, please.

Titus Pierce. I'm the President and Chief Executive Officer of Royal Bank of America Bancorporation, Inc. here in New York. My question is on the WISe.ART. Can you deep dive in on the white label a little bit for me, please?

Yes. For sure. So the idea, as I say, is that as a cybersecurity company [Audio Gap] I mean we will do for a while just to show that NFTs can be placed but our final destination is to team with you, with a Bank of America and develop a Bank of America [ slot ] NFT site, using our technology. So that means that you will be able to do your own NFTs, brand it. You will benefit from the back-end, the platform, everything that we have demonstrated you might want or not to use some of the aspect like the cryptocurrency, where you say no, I don't want use that part, but I want to use the rest. But that will accelerate the movement of high-end NFTs into the internet. I just came from Miami Art -- Art Miami, and there's a lot of NFTs, but it's a lot of unsecured NFTs. So people that -- they are good NFTs, but what about if the website goes down? What if the company is selling the NFT disappears? What about if I lose my NFT? So those answers, these should be provided by serious cybersecurity companies. And that's the white label. So brands like -- luxury brands or clients in different spaces are now approaching us to say, can we do a branded NFT with your technology by providing a white label? Yes. So we have a few minutes of more questions for me or David or John or Terry, the speakers. So yes. Yes. So we're going to deem the light, so we're going to see better the presentation. So maybe just to slowly introduce what we're going to see now. So hologram has been there for many, many years. Now holograms, and I think the COVID has accelerated that, are becoming truly professional tools. This is not like a gadget anymore. This is something that you can have a very serious interactions with holograms and do business with it, as we're going to se now. The -- we did a test, David and myself, on a webinar, that was done using -- he was in New York. We brought the -- Larry, the founder of ARHT Media. He was in Canada, yes, Toronto. And then I was in Geneva, and that was an amazing experience. It's online on YouTube, where we have the 3 speakers sharing a virtual space. And I think after 5 minutes, we actually de-connected from the fact that we were not together. That was actually a real meeting. Today, we are pushing the envelope one state further. So this is the combination between a hologram virtual presence with a physical audience, right? So that is very cool, too, because it will allow you to interact directly. You can ask questions to the speaker, and the speaker will be seeing you as well. So he will be physically like being here without the need to go through the hassle that we did to come from Europe all the way with the COVID situation. So you will let me know when the -- he's live. Yes. Yes, the lights. Yes. So in the conversation is going to be Victor Vuillard, which is the Chief Security Officer and Chief Technology Officer of Parrot. So Parrot is a very specialized drone company. Actually, they were one of the pioneers on drone. They have signed a major deal with the U.S. military and also with the French military. Drones, as you know, are basically on every possible activity now. They started as a gadget. And now they are becoming truly instruments of measuring. They are using drones for traffic. They are using drones for XXXXXXXXXXXXXXX So as I was saying, the drone technology is becoming mainstream. And drones can be used like anything technology as a good thing, but also as a weapon, right? So as I used to say, technology is not good or bad. It's the people behind technologies that they are good or bad, right? So it was essential for Parrot to team with a cybersecurity company to ensure that their products are secure, 100% secure, and in compliance with the new regulations like FIPS regulation, which is a very strict regulation of cybersecurity. That's what the microchip of WISeKey does into those drones. The expansion of that in the future is that as we are now also on space technology through the WISeSAT is that you could create a mesh connecting drones with satellites, with servers. And that's going to be really what is going to happen on the fourth industrial revolution. It's going to be an interactive mesh where everything connects with everything. And you just -- by authenticating the objects, you extract the potential of that object into your platform. The...

Carlos, you have a guest in the waiting room.

Okay. So you mean -- he is already. Okay. So yes. So I will just now see whether we have Victor Vuillard, Chief Security Officer and CTO cybersecurity of Parrot. So as soon as he appears -- struggling on the Internet, I guess. And here he is. Hey, Victor. How are you? [Foreign Language]

Thank you.

[Foreign Language]

[Foreign Language] Very nice to be both time in Paris and New York.

So you are at the Nasdaq, and you are maybe the first virtual ever person on the Nasdaq through hologram technology, thanks to our friends from ARHT Media. So you have an audience of investors, analysts, technologists, CTOs, CEO of CasperLabs and CTO of CasperLabs. So you have a specialized audience in front of you. How do you feel like -- what is your sensation in the other side of the hologram?

Well, it's just like a wow. And when I was invited to participate as an hologram, I thought about Black Eyed Peas doing their live show that was amazing.

Exactly, exactly. And what it is actually is that -- and as you can see, the -- it's very live. It's amazingly live. The resolution is perfect. And we really get the feeling then that you are here with us. I mean kind of ghost type of person off, but you are with us.

I am with you.

Great. So maybe let's talk a bit about the -- your company, your amazing company and technology and why you think cybersecurity is so important in your expansion as you are entering into other high security critical areas such as defense and others. So anyway, you have the audience, and the floors is yours.

So as you mentioned, Parrot, is the second worldwide drone manufacturer, and we are based in Paris. It's listed on Euronext Paris. And cybersecurity is a key priority for Parrot, and it's been so for many years. So we've been implementing cybersecurity by design and by default for so many times. And it's quite important for us, both to protect the embedded system on the drone and every data that is captured from the drone and make sure that the user keeps full control over his data, which is also quite important for privacy issues. So we implement both privacy and cybersecurity by default. We do that on a technical way but also in all of our procedures. And doing so, we enable users to keep full control and be able just in 1 click to erase every data that was previously shared with Parrot. So we secure everything, user active control, and that's our key priority.

And what are the applications that you see drones are -- mainstream applications? We know that, obviously, a new application such as using drone for agricultural issue, obviously, using drones to protect perimeters, residential areas. I guess there is unlimited potential use of drone, right? Where you see this segment expanding? And where the big opportunities are?

Well, there's many segments, but Parrot purchases and professional users of drones, and that may be both on the initial stage side. It's used both by defense and police, but also for private companies that intensively use drones for mapping to inspect infrastructures, and especially critical infrastructures. And in all those cases, they already do need a highest level of cybersecurity because when you speak about defense, police or any critical infrastructure in the United States, you don't want to share this data with anyone else. You want to keep this data secured.

Exactly. And here in the United States, for instance, there have been some major concerns of what type of drones they will use, especially in what relates to some drones coming from China, right? Because the use of drones for Homeland Security obviously require some level of certification, and you have been selected as such. So maybe you can give us some views on that.

Yes. Sure. So first, it's important to emphasize that cybersecurity researchers have been looking to cybersecurity issues from certain drones, and especially the 1 you mentioned from China. And just to mention 1 cybersecurity research, both companies called [ Synacktiv ] and The Grim did reverse engineering software from DGI software, which is used to pilot drones. And what they found is that hidden features were there into the software and was used to get private data of the user's device and send it to a server in China. And they also found that the manufacturer was able to circumvent normal way of updating the application and would be able to push whatever they want on the user's device without the user knowing what's happening. And that's a real issue, and it's at the opposite of what we are doing in Parrot. At Parrot, as I mentioned, we want the user to keep full control and to secure his data. And as you mentioned, we were selected in the Blue sUAS program in the United States. And basically, this program led by the Defense Innovation Unit was about selecting trusted drones. So they define cybersecurity criteria for which a drone would be trustable or they would trust. And then they processed a lot of audits, and Parrot was able to provide all transparency and cybersecurity explanation that show how we use components that come from trusted origins. We implement cybersecurity into the main system. We implement cybersecurity in the network communication between the remote controller and the drone. And all of that was assessed by the U.S. government. And as of today, it's part of the drones that U.S. agencies can buy on GSA platform. So they can do that because it's trusted drones.

Thank you very much. And maybe we can discuss because we have been obviously covering the potential use of those microchips down at WISeKey manufacturers for critical applications in IoT. How do you use your technology? I mean just some visibility on the use of those microchips inside your ecosystem.

That's a good point because we've been implementing cybersecurity even before partnering with WISeKey. But this partnership is really key to us because what WISeKey provides to Parrot is solutions for the future of drones. And what are the problems for this future? I would mention 3 of them. First, we have drones that are more and more connected. So there's increasing connectivity and especially drones using 4G connections, which means drones are connected to the Internet. And this increases the attack surface and needs more cybersecurity. The second point is that drones become autonomous. Our last model is the Anafi AI, is able to avoid obstacles and discover its environment. So it can evolve in this environment and fly in an autonomous way. And that's quite important in this autonomous use that you trust the drone because if you're not able to make sure that the drone is not going to be at, you won't trust something working in autonomous way. And the third point is that it's not even just a drone, it's a robotic platform, which means that any third party can embed its own software into the drone. So it's just like a smartphone area 20 years ago. Before, there was a closed environment for smartphone and then someone came with Android and iOS and open platforms for which people are able to develop their own software for their own users. And that's basically what we enable in Anafi AI. And doing so, you have to provide cybersecurity even for the third-party software, and you need basically a digital signature to make sure that the software embedded into the drone is a software you trust, and it's not a software from a cybersecurity attacker.

Exactly. And that also allows you to certify the data that comes from the drone to the cloud, right? And all that data improves basically the functionality of the drone. Maybe some discussions about the AI aspect of your work?

Yes. That's 2 important things, both AI and connectivity. And I think that cybersecurity is, first, quite important for connectivity because in this open environment, we provide -- or you provide this WISeKey component. You provide our drone a unique identity and a way to perform a strong authentication with our servers or with servers from third parties. And that's quite important because then the drone can quite easily exchange data with other pieces of software that work in the cloud. And basically, it's also important to ease the way the users are using drones. Just one question, Carlos. I guess you manage many, many passwords for all the applications you use every day, right?

Correct. And more and more, as we were mentioning before, as 1 trillion objects are getting connected to the Internet, the demand of that technology, the same technology that you are just describing is becoming exponential.

Yes. Sure. And one of the problems is that you as a human being, you can manage your passwords. I'm sure you don't find it easy because you probably have tons of them, but you are able to manage them. However, a drone, which just a thing, a drone is not going to type its password or not even change its password every 3 or 6 months. So in a technological point of view, there's no way we can ask users to manage password into the drones, which wouldn't be easy for 1 user. But imagine 1 company that buys 10 drones and has 10 pilots. This would mean that every 1 of those 10 pilots would have to consider its password into everyone of each 10 drones. And when user will have to change their password, that would be a real nightmare. And we didn't want that. And that's why we first decided to use WISeKey secure element, which proposes a strong authentication. Because with this component, we allow the user with a cryptographic mechanism to prove to Parrot servers that at 1 time, this person is connected to 1 drone. And then when the drones flies, it first has a direct radio connection. But then when it loses its direct radio connection, it seamlessly switch to 4G and connects with Internet and then ask to Parrot server which 1 is the remote controller going to control the drone. And in this open environment, it's quite important to be able to identify the drone and being able to strongly authenticate the drone. And the best in all of this is that it's quite easy for the user. The user don't have anything to configure into the drone. But thanks to WISeKey secure element, we provide the best level of cybersecurity with absolutely no pain for the user. That's quite easy.

Absolutely. And our cooperation with you proves the point because one of the major issues we had as a cybersecurity company is to work with a state-of-the-art company like yours that immediately defines the use of those keys. I remember 3 years ago, somebody hacked all the video cameras in the United States. And that was a hack. It was so easy because the video camera manufacturer, they had a password, which was the same password for thousands of cameras. So all the cameras were hacked, and the data of the cameras were collected. So that's a problem we are facing in the industry. The manufacturers do not put the level of security in other objects that will prevent those cyberattacks. And that's why we have cyberattacks every day. So your leadership on that is essential to educate the market that this is a requirement.

Yes. Thank you.

So any questions you guys to Parrot, to Victor? Any -- wow, you guys -- what is the impression, by the way? What is the feeling of being talking to an hologram? Yes, please, [ Ashok ].

So at CasperLabs, we have been kind of connected with some international standards that are being prepared for unmanned aerial systems, which is kind of short form of drones. Are you involved in these activities and kind of creating some standards that can be followed by industries worldwide?

Yes. Sure. And it's a good question and easy to compare with cars because, I guess, that on your car, there's a plate and you can see 1 identifier of your car. So what's being pushed by the FAA in the U.S. or by other bodies in Europe is that drones broadcast their identity into the air so that police officer, for example, or aviation, surveillance authorities can see which drone operates on which location. And that's quite important to embed cybersecurity into those standards because if those authorities don't implement cybersecurity in these standards, they want to be sure that when they see a broadcast, it hasn't been faked by an attacker or prove the identity of someone else's drone. So basically, what WISeKey secure element provides is the ability to define a unique identity for each drone and provide a private key that will be used, for example, as for digital signature and when the drone will broadcast its identity over the air. It will include a digital signature that will enable any police officer or any authority to make sure that this drone is the real drone and that the signal hasn't been faked.

I know that you have a hard stop now at 12, right? So we'd like to thank you very much for your time. Just also to announce because now we are already -- the Swiss market is closed -- that WISeKey just announced today our 15 year of cooperation with Cisco and 100 million, 100 million identities has been -- microchip has been already sold to Cisco through that corporation, which shows already 100 million Cisco routers are also secured by WISeKey. So this is becoming mainstream, and this is something that we are very proud to be able to secure such a prestigious company like Parrot, Cisco and many others. So thank you very much for your time. I'm going to check your hand. Can I check your hands? Kind of works?

Yes.

Yes. Okay. I bet you're tall. You're very tall. By the way, that was a great. Thank you for your time, and enjoy Paris. [Foreign Language]

Thank you. Have a nice day.

[Foreign Language] So this is going to be the future. This type of technology is -- it's just at the beginning, right? But both the drones and the hologram. But again, think in terms of the platform. Think in terms of the airport, of the Internet and WISeKey is trying to become. How those things are secure and always trusted and always protecting the user and protecting the human. So open to questions. If not, we're going to have a lunch, a light lunch and then come back on the very exciting NFT area, demonstration of the platform on a full presentation by CasperLabs Founder and CEO, which is with us today. Any questions? Otherwise, lunch is ready.

I think we'll have a video, if you want to show them.

Yes. Go ahead. So it's a summary a bit of what we have been discussing our entire day. Yes. That's a very big thing in supply logistics. It's leading solar panels. [Presentation]

Okay. So we break for lunch?

Yes.

Thank you very much for your attention, and we'll continue a few minutes after lunch. Thank you. All the best. [Break]

Okay. So thank you very much, and thank you for staying with us after the lunch. I know that it's a busy agenda for everybody. So we are moving now to the second part of the introductions of the platform, the blockchain activities. As you know, we have signed a partnership agreement with CasperLabs. We have been working together on the WISe.ART platform, which I'm going to demonstrate later. And I have the pleasure and honor to have with us, the CEO and founder of Casper, Mrinal. So he will introduce us his company and also give us views on how this blockchain industry is moving forward. So the floor is yours.

Thanks, Carlos. Hi, everyone. Thanks, everyone, for joining us here in person and also those of you who are joining us via streaming. My name is Mrinal Manohar. I'm the CEO and Co-founder of CasperLabs. CasperLabs is a for-profit software development firm also based in Switzerland, just like WISe. And we built the Casper Network. Through this presentation, I'm going to talk first about the company, CasperLabs, in general, that so all of you understand what we're bringing to the table in this partnership. And then I'm going to talk about NFTs, marketplaces and what we're doing with WISeKey. I'm extremely excited about this, both in terms of what it means for us and our ability to bring world-class infrastructure to the space. But I think combined with the kind of security and product that WISeKey brings I think we'll create something here that is completely new, novel in the market and extremely exciting. And we'll take NFTs to a place where they haven't gone yet. So first off, let's talk about what we're trying to do. So I've been involved in the blockchain space for a long time. I first discovered it in 2010, became a seed investor in a lot of protocols, including Ethereum, Filecoin and lots of foundational infrastructure in the space. And one thing that became really evident to me was that enterprise adoption of blockchain has been fairly minimal to date. I mean there's been crazy adoption over the last decade. But if you think about an actual enterprise app, for example, Toyota using the blockchain to mark each one of its engines, that hasn't really happened. And there are 3 or 4 key reasons why it hasn't happened. And this is what we're looking to solve. And by solving these, I think we enable companies like WISeKey to bring enterprise-grade secure offerings to the market. First of all, most blockchains have proprietary programming languages and tools. And companies are not going to change the way they build software or their workflow to embrace a new technology. Instead, technology needs to go where they are. And so we embrace open programming standards. Secondly, those of you who have tried to use blockchains as they currently stand, there's a lot of pricing unpredictability. While this might work for enthusiasts or use cases like that, if you're an actual business that needs to budget, this is very, very non-tenable Third, the upgrade path is very, very unclear with current blockchains, both for the core infrastructure and for the end smart contracts. Now our view is that history is not changeable in a blockchain. And we're very, very strict about that. I mean the moment you get rid of the immutability of a blockchain, you're losing one of the core aspects of this underlying technology. That being said, we believe the future is unwritten and therefore, should be changeable. And then finally, we make sure that we've created a product that is highly usable and has all the features that an end enterprise would need. And thus, we solve what's commonly referred to as the blockchain trilemma, where you want to marry performance decentralization and security. And unfortunately, what's kind of happened in the space is in order to go after scalability, people sacrifice security or decentralization. And this doesn't make sense for enterprise-grade applications. Today, Carlos and our guest from Parrot talked repeatedly about the need for real security. If you're dealing with things like drones, if you're dealing with extremely expensive pieces of art, things that could have either a life or death or extreme value consequences, these are things that you cannot take likely. And which is why creating an enterprise-grade product is difficult. So what does this mean for NFTs? So let's just step back for a minute. At the risk of sounding pedantic, I'll just step back and talk about what NFTs really, really are. If you think about Bitcoin or Ether or the Casper token, these are all fungible tokens, meaning 1 Bitcoin is the same as any other Bitcoin. And NFT is a non-fungible token, meaning it represents something absolutely unique. So it could either be someone's identity, it could represent a patent. It could represent a device, but there's only 1 of that token. And on top of its ability to represent a single entity or object, you can also embed all sorts of intelligence on top of it. NFT 1.0 is how this started. It's kind of static. It's usually some sort of JPEG file. You've probably seen a bunch of these online. And there's no real built-in utility. There's an image. There's the NFT, which is a certificate associated with it. Where we're going now is NFT 2.0, which is high utility products. These can -- these are usually digital representations of an actual physical good or the certification with that physical good. So I'll give you one example of each. For example, assume in the example with the Hublot watch, the watch was actually sold along with NFT. Now what the NFT acts as is a certificate of authenticity. And this has huge benefits because since it's immutable on a blockchain, you can always prove that this watch is the original and you transfer the NFT with every sale. You could also do some really, really cool things with it. For example, if the original seller said, "I want to take a 10% commission every time it's sold again," you could just embed that into the logic of the underlying NFT, which is really, really interesting. Or it could be a digital representation of a real object. Some of the examples we gave or Carlos gave rather were digital representations of pieces of art and high-value assets within the Vatican. So there's only one approved digital representation or digital twin. You know that it was signed by the entity that's saying signed it, which, in this case, would be the Vatican, assuming this happens. And now you have the one digital representation of a real, real object. And this is where we're going with 2.0. Another example of high utility, for example, could be patents. This is something we did with IBM and IPwe, where patents are their own NFTs. And now you can create a marketplace, they become tradable, and information on licensing, et cetera, is completely transparent. So where are we going to go after this? Probably NFT 3.0, where you have autonomous AI and intelligent objects. And this is something that you need a platform like WISeKey to actually do. So let me give you an example -- say there was a -- say, a fridge was represented by an NFT. And your fridged us 2 things: One, there's also an NFT associated with the local power supply. And your fridge could actually negotiate with the local power supply saying, "I'll only run my motor during off-peak times. And thereby, I'm going to help you load balance, but I expect a discount." And second, your fridge might say you're out of orange juice and actually order it for you. And the permission is given to a drone through some third-party service that also has an NFT associated to identify that drone. Now all of this sounds crazy, it sounds like science fiction perhaps. But think about it. If you actually have that safe place or that platform that Carlos talked about, where everything within that environment is trusted, this actually becomes a reality. I mean if you told people in the late '90s that you'd have all these apps on your cell phone and your entire life runs on your cell phone. And basically, you have 10,000 times of processing power of the space mission that took us to the moon in your pocket, no one would believe you. But things happen when technology really grows. So what do we bring to the table as a partner to WISeKey. The NFTs will be highly secure alongside the cybersecurity requirements required of such high-value transactions. Costs are sustainable. The underlying smart contracts will be upgradable. Like we said, the past is the past and it's not changeable, but the future is unwritten. And finally, we'll always be more energy efficient. While maintaining extremely high security standards, we're actually probably the most energy-efficient blockchain out there. But I think most important, over and above, these are product details. What we really bring to the table is we are long-term partners with WISeKey. We really appreciate the vision of the company. And we realize that in this space, building on blockchain is difficult because sometimes you don't -- or almost all the time, you don't have a partner who's there with you from day 1 to make sure that the complex design decisions and technical decisions are made correctly. Done correctly. An NFT marketplace like this has unlimited potential. Done wrong, it could be harmful. And we're here to partner with WISeKey to make sure that we all do this correctly. So I just want to end by saying extremely excited about this partnership and really look forward, I think the best is yet to come. Thanks for having us over Carlos. And I'll just add a little video loop in the background, but it's self-explanatory.

So yes, thank you very much. Yes, there is. Very good. So thank you very much, Mrinal, for your presentation and your support..

Thanks for having me.

As I mentioned at the beginning of the presentation, building cybersecurity models on the top of the blockchain is actually something very powerful because the blockchain itself is very secure. And if you combine centralized and decentralized, you solve both problems because we are in a hybrid world. Not everything is digital. We are still very physical. Even if people saying the metaverse is the final destination, and there are sort of extreme views that says you're going to be logging in the metaverse and you will log off of the metaverse just to go have a lunch and go back again to the metaverse. That's an extreme view. I think that doesn't play well because humans we are a bio entity. So we need to touch, we need to feel. We need to do things that humans do. And the digital wall is only an extension of that. But the big opportunity now for the business point of view is how do we move things from the physical world to the metaverse. And this is what WISe.ART is doing. So can we access from here the -- physically the platform? Or sorry? Yes. Okay. So because we cannot type, so we need to go live. So as I mentioned before, what we did is to team with CasperLabs, and we added a layer, which is a PKI, public infrastructure layer, on the top of it for taking a painting, for instance, or a watch or jewelry and creating its digital twin. So the big opportunity here, and I was in Art Miami last week. And so a lot of people wanted to explore the NFT because this is the first time that creative people can monetize their art, those artists were not properly protected in the previous revolution -- internet revolution. Now they see a huge opportunity for them to enter into the Internet and bring their creativity. I think this is going to totally change the dynamics. So the way the Internet that was designed by gigs and by mathematicians, by engineers now is going to be done in cooperation with artists and other talent, other part of our brain. So the big opportunity, as I mentioned, is to go and take an original. You go to a museum, you go to a gallery, you create a digital twin. The digital twin has a digital certificate, which is stored in the blockchain that can be interpreted anytime as a proof of evidence than this original corresponds to the digital twin, and then the digital twin has a value. Now because the market is very rich, we are talking now the cryptocurrency market is something like $1.5 trillion already. So this is nearly already kind of the markup of companies like Apple and others and it's getting exponentially bigger. So there is a lot of demand for crypto owners to invest in NFT. For them, if you are on Bitcoin, for instance, right of selling your Bitcoin and cash out, you rather want to enter into the next cycle of growth, which is going to be NFTs. NFTs industry move from something like $300 million at the beginning of the year to something like $16 billion by the end of the year. And this is growing exponential. Amazingly, all the people thought that NFTs will be only a hype and the investments will be lost. NFTs then they were negotiated at $300,000 at the beginning of the year. They are now several million dollars, the same NFT. So you can resell the same thing you bought for $300 million to several million dollars. And high is going to be the quality more this is going to be exponentially growing. So we really believe, contrary to other people that they think that NFT is only another hype. I think NFT is the next Bitcoin. It is really the next investment cycle. So are we ready to demo? So the way it works here, and you will see we will access WISe.ART. It's actually not .com, it's WISe.ART. It's not .com only. And here, you can go to join the -- yes, here, good. So we are live, right? And this is like a marketplace. It's like Amazon or whatever. The only difference here that if you click Browse NFTs, there, you will go into the -- yes. So this is the artist and they are loading their painting. And you can choose, there are hundreds of them that's come in. We do -- the way it works, they come into WISeKey. We are teaming with companies and do the providence. So we are not doing that ourselves because that's a very specific work. We're also working with museums. We're also working with auction houses. They do the providence, they sent us certification after they have done the validation. We digitalize, we digitally sign each of those documents using our digital signature technology. We store in the blockchain ledger together with the identity. And then we create the page. From there, you just click and you can buy or you can check -- now you have to go through the registration process. We're not going to register now. But if you click on registration, you will go to WISeID. So WISeID is the -- you can do that yourself by going wiseid.com, which is the digital certificate capability of WISeKey. Maybe you can go lower, please, just to see more NFTs, So this is one artist, which is very big. Just go at the end of the page, if you don't mind. Yes, just go to #2 or 3. Anyway, so the business model on those platforms, as I mentioned before, is that normally an NFT is between 10% and 50% of the original value of the regional art. So if you have 100,000 painting, the NFT is around 15% of that standard worldwide. And as Mrinal say, you can add into your smart contract things like conditions, like if you resell the NFT to somebody else, I get as an artist, I get 10% of it. Or you can do a few things, but you cannot -- I mean you cannot print a T-shirt with NFT because you don't have that right. So all that is defined into your smart contract. And those are -- this is a very famous artist in Spain. Sandoval, they call it, which is one of the best designer. Actually he is making avatars of famous people. This is people -- that's supposed to be me, by the way. And these people, they bring -- they have people like Messi; like tennis player, Federer. And all of them, they are now taking their rackets, their trophies and creating NFTs with it. So this is like a huge movement going. The good part of this as well is the capability of associating NFTs with causes. For instance, we are working with the United Nations. There is a new way for philanthropy to raise funding. As you can give to the donor some NFT. I mean the donor sends, gives the money to the UN, let's say. But he keeps on NFT as a way of proving that this transaction was executed on -- he's a collector, at the same time it has a value. So this is a new way for funding, financing in international organizations and nongovernment NGOs, nongovernmental organizations. Anyway, so you can play yourself. You can go and register. This is going to grow exponentially in the next month or so called similar NFT marketplace is companies like OpenSea. OpenSea now, I mentioned, has $100 billion valuation only with a very small revenue. And the reason is that we are like we were in the year 2000 with the dot-com where you have a few websites that emerge and everybody started to do websites and only the best one remain and the others disappear. So we are in that process. I think out of the 100 or 200 marketplace, only the most secure, only the more integrated into platforms like CasperLabs will survive. And the good chance is that cybersecurity companies like WISeKey will be able to keep them strong because there's cybersecurity layer under them. The major risk, and this is the #1 concern from investors is to say, look, if I pay $2 million for an NFT, how you can secure that I'm not going to lose my NFT. I don't know how to keep it, where I keep it. I keep it in my website, in my USB talking, where I store? What about if a hacker will buy, will hack me. So that concern is basically the concerns that WISeKey solved through the cybersecurity aspect platform. I don't know if you have any questions globally from the event for me, John, David, Mrinal, and the rest. So the floor is open if you have any questions. Otherwise, we will be closing.

Carlos, thanks, Kevin Dede, H.C. Wainwright. A couple of questions on your partnership with Casper. Are they developing this entire platform for you? And Mrinal, you mentioned using standard technology. I'm wondering if you're building it off of IBM Hyperledger or what some of the tech routes are?

So maybe I'll answer the first part. And after, Mrinal -- you can join me here Mrinal if you want.

No. No. Please, go ahead. I'll go right out.

Okay. Yes. Yes. So now, the platform is developed by WISeKey. So the code of the platform is a WISeKey, 100%. But we are plugged into their Casper blockchain, right? So maybe you can explain a bit how that works.

Yes, absolutely. So all the UX, all the cybersecurity around logging in, accessing the marketplace, et cetera, all of that is built by the WISeKey team. Where we're going to help is the actual connection with the underlying blockchain, the Casper blockchain, which we've built. There's complex smart contracting tools that you want. I mean both from a security perspective, you want to make sure that the way an NFT is minted, created, its ownership established, follows the same cybersecurity standards that WISeKey would create for WISeID or any other product. But also, if you want to add additional functionality, like we mentioned, scrape on ongoing sales, et cetera, you want to make sure that you create a UX that enables something like that in perpetuity. Last thing you want is people writing their own smart contracts, you'd rather create a UX that makes it very, very seamless for the end user. And then when I talked about standard technologies, we built our blockchain from scratch. So it is not Hyperledger. But when I referenced standard technologies, what I meant was to draw a distinction between, say, as in say, [ call in ] Ethereum or a Cordano, where you have to learn a proprietary programming language like solidity or like Plutus. And the issue there is, one, it doesn't fit with standard programming tools that companies are used to. And two, it exposes companies to key man risk. Because there's very few developers that know these esoteric programming languages. And so as a result, you're taking a lot of risk by having significant parts of your infrastructure associated with a more esoteric technology. Our platform was written in rust. Our smart contracting language is in rust with a standard web assembly build. So over time, we can really support any programming language out there, which means that an integration with the Casper network is something that is infinitely upgradable, doesn't expose you to key man risk. And is very, very secure. Did that help?

Lots. Yes. Can you talk about how you offer Casper as a sort of a white label platform?

Sure. Yes. First of all, the network is completely open source and completely publicly accessible to anyone. Meaning tomorrow, if any enthusiast wanted to build an app on top of the Casper Network, they could. But us, as CasperLabs, the for-profit company, took it a step further where if an enterprise wants to create something that's more complex, right? Something more complex than, "Hey, I have this cute game, and I want to reward people with tokens when they play." That simple, someone can do that on their own. But if it's something complex where, "Hey, we need to create like an NFT marketplace where you could basically NFT something as valuable as The Mona Lisa, but make sure that's crazy, crazy secure, has recovery mechanisms, et cetera. Then we actually work with companies directly to make that happen. So it's like a professional services arrangement.

Got it. A question for you, John, if you don't mind. You mentioned that you had lots of confidence in sort of reaching a number maybe 50% greater in revenues on the IoT side. This year, had you not had the supply chain issues, could you talk to your confidence there? And maybe give us a little bit more color on where you think that demand is and why you're so confident about '22?

Well, simply put, it's -- we've received, as I shared earlier, the backlog of purchase orders that are noncancelable. We very much stressed to our clients that anything they're putting in, they can't withdraw it. They can't cancel it. And they, for instance, we've mentioned Cisco earlier, they are asking us to bring everything we can to them as soon as possible. So it's purely our supply side that is scheduling when we can deliver the product and like a sales saying, roughly, finger in the air, we think about $30 million because those were about -- yes, we felt we could get to 25% on the IoT side this year from talking to our team down there, had they have been able to get the supply from the fabs from the guys out in the East. And so similarly, -- At the moment, we've been given very clear allocations that go to $20.6 million. And what we found with our suppliers out there is, they are trying to manage our expectations sort of under-promise and then hopefully overdeliver. So the only news we've received in the last 3, 4 months as we've been talking to them, is steady incremental increases in what they can do for us. And then when we go back to our clients, they're obviously saying, yes, as soon as we can get that please. Please deliver it so if we can bring things forward, we've got orders scheduled for 2024. But again, that's purely because we can't get them sooner. So that's why we're that confident.

Your -- one of your slides also spoke to sort of a supply chain moderation, I guess, or return to normalcy at the end of next year or early '23. And I'm kind of wondering where that foundation is built on?

Yes. I didn't try say, necessarily return, obviously, but the indications that I think we've received in the market at the moment is that as we get towards the end of '23, that's when the suppliers are expecting things to come back to a more normal supply level and the constraints will go away. I've got -- well, I'm not as much for an expert, so I don't know. Can't give you any more information, but that was...

It's very unpredictable because the -- but that doesn't only apply to WISeKey, it applies to everybody, right? The concentration now is in Asia, is in Taiwan, mainly, although WISeKey has also operations in Thailand now, Singapore, and also in Europe. That we are -- that's going to be actually our focus to decentralize part of the production from Asia back to the United States of Europe. The European Union has allocated $36 billion into they call the CHIPS Act, which is independency from Asia, right? So this is a political move now of the United States and also Europe to take away the risk factor of dependency that we have for Asia. I mean imagine the worst-case scenario, China invades Taiwan, right? After Russia takes over on Ukrainian, right? I mean what the world will look like in that kind of a scenario. But that applies to everybody. I mean this will not be a WISeKey problem. There will be an entire industry problem, connected car, Tesla, BMW, all of them. They have a huge dependency of the chips. So in order to count, we believe this is not going to happen. That will be a very doomy scenario. I think what is going to happen is that companies like WISeKey actually, they are more agile because is it easier to place a 10 $100 million chip deal than a $5 billion chip deal, right? So sometimes, when we arrive to the fabs and we say, look, we have $100 million over 3 years deal, they will accommodate better to us than if somebody says, "Hey, you are exclusively working with ARM or NXP. And that's the only thing you can do, right? Fabs don't like to have that kind of dependency on one client. So this has a low -- actually, this is the team, the IoT team managed very well to handle that. And even Cisco, Cisco is a major buyer from those chips. And Richard was able to navigate that complexity during the year in a very efficient way. Maybe, Richard, do you want to say something about that?

I can simply say that Cisco is very confident in their demand, and it's increasing. I don't know that they want me to show the specific numbers, but they're asking a lot from us. And again, it's in NCNR and we've already got a significant backlog, not just from Cisco, but in particular, from Cisco, for next year.

And it's not only Cisco, it's the entire Cisco ecosystem, right? All the companies working for and with Cisco. Yes.

Yes.

Any other questions?

Okay. So we covered a lot of territory today. I hope that the vision is clear where we want to go. I would like to thank also the people that has been following us through video conference. And for us, it's the second time we come into the NASDAQ after we do the listing in 2019. Hopefully, we're going to come back more often, depending how the virus situation expands. But the message I want to leave with us, with you guys, is the user human-centric approach of WISeKey. It's pretty unique. We only select companies that are partnering with us with that vision to protect humans on the Fourth Industrial Revolution. There's going to be a very big conference in Davos, next year, on where we're going to be able to give progress. Also WISeKey is organizing a human on the metaverse event in Davos. You guys are invited. If you are in Davos, I know that CasperLabs is going to be very active in Davos with their own presence there as well. We're going to be doing a lot of things together. And I think the message is that, right? Develop an Internet that is secure, that humans are protected, that the Fourth Industrial Revolution is a revolution where we can progress and expand, not detrimental to our basic human rights. So thank you for your attention all. And if you need any information from us, please, you know where -- contact us through Lena or myself directly. Thank you for your attention. That was great, guys. Thank you for your help. All the best. Thank you, Lena.