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Okay. Welcome, everybody. We appreciate your coming out to hear our story. My name is John Hickman. I'm with Landberg Thalman. I'm the analyst that writes on this company. This is Energes. The symbol is W-A-T-T. Very clever. Watt. um and with me today I have um Marjorie Barack and John Paula Marino we have the CEO and the chief technical strategy is that what you call yourself yeah yeah okay so um with that we're assuming that you're here because you know a little bit about the company and we're gonna try and delve deeper into the nuts and bolts and I have a couple of questions that I'm gonna to ask and then hopefully you've brought a question or two that you might want to ask the management team. So with that, we'll get started forward looking statements you can't hold me to anything. So we're required to show you all that anyway, just to get started. is going to give us a little five-minute intro. So go ahead. So I think everybody's aware that over the years, operations of large enterprises, Fortune 500 and larger, become increasingly complex. There's more assets to track, more items that, you know, are subject to maybe spoilage for perishable goods, product diversion, possibly theft or loss of inventory and that has created for industries a 1.85 trillion dollar problem. And Energis being a pioneer and over-the-air wireless power technology, we have a patent portfolio in excess of 300 patents in the wireless power and receiving technologies we solve that problem and with the emergence of ambient IOT and being able to introduce a scalable solution for large enterprises we can create a wireless power network using battery-free sensors and our wireless power transmitters and our e-compass platform which sort of aggregates all the data and for these enterprises thank you for these enterprises being able to track real-time data and have real- time visibility into their operations and supply chain creates meaningful savings for the companies and so there's a large appeal to adopt this emerging technology Thank you, Mallory. So I think there is two important words here that it's good to remember. The first one is 1.85 trillion dollar problem, which we are addressing. And the second one is visibility. Visibility, it's very important. This is what customers are paying for today, for visibility across their entire supply chain, their entire infrastructure. And what we mean by that is really put like a pulse on an asset the moment it leaves a warehouse the moment it reaches the store customer wants to know exactly how that asset is traveling across right because if they don't the moment they lose the pulse on that asset is when the problem basically happen and when they lose money so how do we do this how do we basically enable visibility across you know all these industries very simple um you'll see here from this block diagram at the physical layer we call the physical physical ai layer you know we have our essence tags which are basically very small tags like these that get associated with asset these tags are basically operate harvesting energy from our network first and foremost right so they receive rf energy they're able to operate without batteries and i'll tell you why without batteries is important it's not just the cost of the battery that's nothing and then you know what they do is they harvest energy they generate data right they They generate basically data in terms, Hey, I'm here. This is my position. Hey, for you, if you're monitoring temperature, here's my temperature for monitoring, you know, perishable here, my temperature, humidity, right. They'll give you all sorts of very relevant data based on what the asset is. And then, you know, they transmit the data back into our network, right? And our network basically is comprised of devices like this, you know, nothing different than an AP access point that you see like in every, you know warehouse, uh, enterprise infrastructure, AP, you generates wi-fi what we do here we we generate rf power and then we receive data right so we just don't give power we also receive data so we are the conduit of data from the physical layer which is the sense or the sensor all the way to the to the cloud which is basically e-compass and this is what mallory was talking about that is that data management platform that we have built on top to aggregate all that data and enable some and basically ensure that you know we provide the customers meaningful data that they can ingest understand you know how how to run their operation so very very very simple marie can you go to the next slide um so why we win right um so so i'm sure i don't know if you guys have heard or you're familiar with you know the term ambient iot uh if if not basically ambient iot is basically sort of like a carve out of iot where now you're using sensory elements everywhere you know to basically generate data and to sort of like create a digital twin of asset that you're basically tagging right so so why we win is because we are establishing a power infrastructure within ambient iot that is scalable and reliable and that's what you need every new technology you know needs reliability and scalability if you don't have any of these two you're done and so that's why we do and this is why we're winning so in essence our network enables really scalability and it enables basically power to be propagating the air um and when i say power in scalability you know these these tags basically can operate from a distance you know up to like you know 15 25 feet you know from the you know from the transmitter so we have scalability in terms of range and uh so when you look at basically this light right here i know it's a little bit busy but here we're sort of comparing you know technology like you know rfid right versus ambient iot and and so the difference is in an rf id which is a passive technology you sort of have like asset tracking in a very periodic way i scan a tag in an RFID tag i get a reading and that tag goes dormant i don't know what is happening whereas with ambient iote the tag is always on is always alive it's always giving you a piece of information okay and that's basically is the change of the game you know this goes back to real-time visibility that we have been discussing and so the last column when you see energies it's very important because not only you know you have real- time continuous data you know you're now through the network we are starting basically to delineate engineering zone that are enabling customers to understand exactly how the assets are traveling across their supply chain whether they are in a staging area pre-staging area whether they are leaving the dock we can basically sort of like know all that um you know we don't require any sort of maintenance or any sort of manuality we do everything is automated the data flow is in a very automated way so we are not requiring anybody to be on the floor scanning things and you know getting data absolutely not the tag will generate the data and so reliability up to 99 i'll go back why not the battery right well we don t really care about the battery the problem with the battery is if you take a battery and you put a battery in this tag and you start generating pings or data every five seconds this tag will probably last you like two months right two months now imagine you want to deploy millions of these guys right you can't just replace it every two months it's just it's a it's problem that is not going to scale you know for customers so we are eliminating you know the battery out of the equation and we're enabling basically this tag to generate data every five seconds, right? So again, every five seconds now we're talking about real time, versus if I had a battery, I will be basically bounded by a limited power budget that maybe will enable me to generate data every five minutes. Right? That's not real time asset tracking. That's no real time visibility. That is periodic asset tracking and again, you know, I'm still bounded by the $1.85 trillion problem that I'm not solving. I only solve this problem if i give you visibility every five seconds or less and we're capable of doing so today and that's the reason why we're solving a lot of the issues that customers across retail supply chain logistics manufacturing operations are having because it's the same problem across yes um on that note could you mallory or john paul could you tell us why it's not there are tags out there that just take in ambient power there yeah they don't require your power bridge why doesn't that really work because because basically sorry because basically if you're if you are relying on a network or power network that is not ours then you don't have scalability because that tag can cannot harvest energy more than a meter away or like let's say three feet away right so every three feet i need to have you know some sort of access point that enables the tag you know to harvest energy it's not scalable because that means that yes and the tag can't send power back or can't send data back the tag doesn't have the power to send the data all the way up into the cloud it's impossible you can only do so when you have a reliable wireless power network infrastructure and the likes of what we have building right so that's why that infrastructure is very important because it gives you scalability and it gives your range okay my next question is um for those of you who might not know this the one of the major products um or solutions that watt is solving is the cold chain people that are tracking perishable merchandise can you explain a little bit why the watt solution is so important in the cold chain arena yeah so so I think it's a great question I think again the fact that we're monitoring temperature we're monitoring humidity right it's very important for you know everything that perishable right sometimes what we see what we have noticed is a lot of our customers especially you know some of the fortune 10 that we're dealing with today um you know they have pilots of cold chain pilots of food and sometimes you know because they are not capable or able to understand exactly you know the condition in which that pilots is meaning temperature sometimes let's say you have a palette of meat right that is sitting in a warehouse or in a staging area you know at 35 degrees celsius or you know 80 80 degrees fahrenheit you have five minutes before you have to basically discard that entire pallets five minutes of operating at that temperature or staying at that temperature before basically you haveと isolate that pallets and say you know what it's not good enough anymore we have to isolate it because there is problems and so it goes back to again what we do and and what we monitor and it goes back to real-time visibility and asset tracking once you have this device that is on that palette now they know that if there is a problem hey there's this palette of meat that is sitting in a pre-staging area has been here for 35 seconds they've been here for a minute you got to intervene right now before it's too late right before you have to discard the entire thing and just just to add to what john paulo said we have a competitive advantage because our technology, our hardware, can operate at negative 30 degrees C and our competitors can't. So that differentiates us and has gotten us into accounts. We have some QSRs that we're doing large-scale pilots with and, you know, for grocery especially too, being able to put the transmitters and have the tags operating in a very cold environment is very important to the visibility and monitoring and that's where we thrive now i want to ask you about you for those of you who might not know what has two major customers and i will mention their names because i'm not part of the company but they work with amazon and walmart and other they have other deployments can you talk about the feedback you're getting from your customers what they're saying to you um what they really like what maybe they don't like are they expanding with you talk about the feedback so i'm not mentioning customer names um it's oh in terms of use yeah it's it's basically monitoring um assets as they travel across their supply chain so we are focusing on food or perishable for instance we monitor everything that is perishable and so we monitor everything that goes from a grocery distribution center all the way to the store right everything is good or we monitor assets you know high value asset you know mid-value assets asset that for instance you know they need to be tracked because they can disappear you know imagine if you have a palette of iphones that you have to ship from a warehouse into a store that's a lot of money right and so the customer really needs to have a pulse on that asset then they want to know exactly to the second you know what everything is is the asset in the staging area has it been loaded to the right trailer right because sometimes assets get loaded to trailers that are going to a completely different store right so so i think you know this whole concept of visibility and this is exactly what mallory was mentioning what i was mentioning visibility is very important because customers today are paying for visibility Any other questions from the audience? tracking but you're flashing uh yeah it's a great question it's a really great question um we love rfid i think rf and the irfid as a technology has really established the foundational layer across you know many different industry of supply chain or asset tracking right so what we do we layer intelligence and automation on top of rf id right and we do the basically with this technology so also rfid is a passive technology right so you constantly need manual scanning to receive a piece of information but when i'm done scanning even in a cold environment rf id can survive in a cold but again you need to scan the tag to receive a piece information the moment that you are done scanning then the tag goes back to sleep and you don't know what is happening to that asset right so rfID is great but again we're talking about periodic asset tracking right here we're talking about real-time asset tracking and that is the difference between the two technology which combined together right it's the change of game that a lot of the customers out there are looking for today we're sitting on a pallet absolutely but i think as um you know we've become much more efficient um you know manufacturing this tag and and really you know reducing cost eventually we will become uh or we will get to tag single items as well right but today we are on a palette or we're focusing on items that you know might might have a greater value i mean you know you're not going to put this thing on a one dollar asset or a five dollar asset that doesn't make any sense right uh you sort of want to aggregate you know this tag with something that is of a greater value but jean-paul you are really tag agnostic if somebody wanted to use a five cent tag you could still get power or data from that tag completely i mean you know the beauty about and again you know mallory can expand on that but we are tag agnostic obviously we have our own tags but on the data you know our platform aggregates you know multiple inputs you know from different tag and that is also includes our fid right because at the end of the day when you start deploying with a customer you can't just say well you know i can give you data that is related to what i do with my technology you can have to say well this is my data but also let me aggregate all the other data that you're generating so that i can get you much more meaningful information right around your operation just to to add some context to when when john mentioned we are tag agnostic we do partner With companies that have a battery free tag that goes at the item level so it's a it's a much lower cost tag, because when you think about fortune 10 companies. They have millions and millions and. Millions of items that flow through their operations and so, especially for higher cost. Business units where they're dealing with higher cost items having visibility into tracking at the item level is also important with our tags having this full ecosystem to be able to provide for us it's nice and for our customers it's to have one vendor that they're working with that supplies not only the visibility but the entire network so we have um you know the the transmitters of battery-free tags our e-compass software platform and that creates for us as a company a recurring revenue stream which is very important for us to have a more predictable revenue base upon which we can continue to build go ahead yes yeah so so the first question yes um you know these are basically tags that are for fully reusable or report repurposable so let's say this tag gets associated to an asset once the asset is at the end of the journey then you know we'll reconfigure the tag to be reassociated with a new asset so we'll basically generate just a new id right uh in terms of your current revenue you absolutely right um you know it's it's obviously at the at the sas level right it's at the platform level where you know we we can generate recurring revenue but uh let's don't discard the hardware right because people think well you know you're deploying with these customers now um you know the hardware is basically once once once you're deployed within the infrastructure you know the Hardware is pretty much limited to a certain number no as we deploy and as we learn what the technology can do there is always more and more and More and more use cases that the the customer you know want to deploy with which basically adds more more and more hardware you know on top of that equation um your gross margin after your 35 yeah um Phenomenal to your object has been declining since 2019. And it sounds like you have been profitable through that. Am I wrong on that? Maybe I should answer that. What? Do you want me to answer that? We think that they get profitable on a quarterly basis somewhere around six, six and a half million in revenues. Yeah, I think from an OpEx perspective we're sort of at the baseline. We've been for the past two and a half years going on multiple tracks. One is the company is 14 years old and pivoted strategies to enterprise applications about three years ago and it's an emerging technology and so getting market adoption from two fortune 10 customers is not trivial but in parallel we had to turn the company around as well and so thank you for noticing we did cut a significant amount of cost out of the company we've now had our fifth consecutive quarter of revenue growth and we are working toward profitability and cash flow break even. That being said, you know, the market environment right now, while we're highly focused on continuing the consecutive revenue growth, you know, we are dealing with the supply chain dynamics and the company had been cash constrained for, you know a long time but in q1 we raised 31 million dollars which put us in a much stronger position a much better more strengthened balance sheet that's enabling us to number one we brought up a u.s contract manufacturer so we not only increased capacity to a second cm but we also are now uniquely positioned to get U.S. government sector business where they require that the product be manufactured in the U. So we're implementing all these strategic initiatives. And, you know, while we're focusing on revenue growth and profitability, we're also, you know, investing in the future and dealing with some of the, you know, investment and, you know, I guess, margin issues that may come up as you start to navigate supply chain and and put yourself in a position to get ahead of the procurement and the lead times and you know, basically get yourself in in a better position to have some safety stock and things like that. We have one minute left. Go ahead. Can you touch on the regulatory driver in the U.S. and the E.U.? Yeah, absolutely. So our products are fully FCC certified here in the US, and they're also European certified. So the latest product is this guy right here. This is a two-watt conductive power bridge. I'm more of a regulatory from the E, U. requiring supply chains. Oh. Oh, well, in terms of supply chain, I mean, meaning, like, component supply chain or? Oh, yeah, yeah. Yeah, absolutely. So, obviously, in U.S., you are familiar with FASMA, right? And FASTA is a very stringent requirement that is coming down, which basically requires traceability, right, you know, especially across, you know, cold chain environment, right cold chain. And so that particular requirement is also in existing in Europe. But what is actually coming in Europe is, I believe, around 2027, 2028, is that coin cell batteries are going to have to be eliminated, you know, out of sensors. So no more coin cells. And coin cells, you knows, are batteries that you cannot repurpose anymore. Once they die, they die. You sort of have to discard those into the environment. And so, you now, that opens up a great window of opportunity also for something like that, which operates without a battery, right? so 408 so we're out of time but you can stop by booth 408 and management will be around thank you so much