Gorilla Technology Group Inc.

Good morning and welcome to Guerrilla Technology Group 2022 Financial Results Conference call. As a reminder, today's call is being recorded. All participants are in listen-only mode. For opening remarks and introductions, I would like to turn the call over to Gary Dvorak of the Blue Shirt Group. Mr. Dvorak, please go ahead.

Thank you. Good morning and welcome to GORILLA's conference call to discuss 2022 results. With me today are Jay Shandon, our Chief Executive Officer, and Daphne Wong, our Chief Financial Officer. Certain statements made during this conference call that are not historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include those regarding our future plans, objectives, growth, and expected performance, including our outlook for the fiscal year 2023. These forward-looking statements are our outlook only as of the date of this call. While we believe any forward-looking statements we make are reasonable, actual results could differ materially because the statements are based on current expectations and are subject to risks and uncertainties. We do not undertake and expressly disclaim any obligation to update or alter our forward-looking statements, whether because of added information future events or otherwise. Further information on these and other factors that could affect the company's financial results is included in filings we make with the SEC from time to time, including the section entitled risk factors in the company's form F-1 previously filed with the SEC. Additionally, some financial measures discussed on this call will be non-GAAP. A discussion of why we use non-GAAP financial measures in a reconciliation schedule showing GAAP versus non-GAAP results is available in the earnings press release that can be found on our investor relations website and also in the form 6K filed with the FCC. With that, I will turn the call over to our CEO, Jay Shandon. Jay, go ahead.

Thank you, Gary, and thank you, everyone, for joining us on the call today. Although we went public last summer and have reported first half of 2022 results, this is our first conference call in conjunction with Earnings. We're excited to report great news to you and to take your questions at the same time. We intend to maintain this practice, conducting a conference call with each quarterly report. Daphne will provide more details on our financials and our 2023 outlook later in the call. I will focus my comments on our strategic objectives and key priorities for the year ahead. And let me start with a guiding principle. When I became CEO, I was determined that we needed to establish trust as a top priority for Gorilla. This means trust for the employees, trust as a partner, trust as a vendor, and a platform solution provider, and more importantly, trust for all shareholders. After the merger, we looked at every element of our business, top to bottom, products, marketing, human resources, you name it. In every part of the business, we looked at where trust was high and where it was lacking. This drove a lot of the decisions we made in the second half of the year, which I will elaborate now. 2022 was a transition year for us. We made some necessary changes and started exciting new initiatives. The key changes were as follows. First, we expanded our offering to encompass security convergence, which complements our core advanced AI video analytics offering. Second, We beefed up video analytics by acquiring technology assets of Sequestr. Third, we improved our access to capital by listing on the NASDAQ via the merger with global SPAC partners. And finally, we expanded from being a Taiwan-based regional supplier to a London-based global leader with customers throughout the universe. Notably, we expanded our sales force in Singapore, Thailand, Taiwan, the UK, and in the MENA regions. which should revitalize the existing business, create expansion opportunities within our existing customers, while striving momentum with new large customers. We are already seeing the evidence of success. Most important is the large smart city cybersecurity implementation project in the MENA region, which gives us great revenue visibility for the next two to three years. We also won our first UK customer for a smart port project. We announced that we will develop a new generation Edge AI appliance with Halo and Lanner Electronics. And we continue to strengthen our team, most recently adding Dr. Evan Medeiros to the board and Lawrence Ng as our head of Asia. The MENA project is a milestone for us, which with size, far in excess of anything we have done to date. The project will stretch over a few years with revenue from the phase one loan approximating over $100 million. Phase one should be complete in the next 12 months. The second phase, which we believe will be significantly larger, the devices installed are likely to be three to four times more than phase one. The revenue opportunity, we believe, should be at least double than phase one. A project win like this demonstrates the power of the new strategy, the new team, products and infrastructure we've built this year. This large MENA project is just the first of what we believe could be many similar projects around the world in the year ahead. Now, we have three key priorities for 2023. First, is to build upon the foundation of innovation at Gorilla and establish us as a trusted, predictable platform as a service provider. Second, to pivot away from marginally profitable, cost-plus project business, and increase our focus on larger, longer-term opportunities. We will increase our mix of predictable, recurring revenue streams with more strategic platform-based business. Third is to create a culture at Guerrilla fostering trust and respect that allows all our employees to innovate and grow their careers. We believe such a culture will enable us to sustain our commitment to workforce diversity and belonging. As a result, our teams are more collaborative, and we aim to exceed client expectations. Now, to support this, we've also created an attractive employee incentive program to attract, engage, and retain talent. The key elements of our human resources initiatives include professional development, participation in RSEs, team-wide recognition of accomplishments, freedom of choice of projects across the world, and attractive bonuses or raises based on personal and company performance. To enable this pivot to a high-growth global profitable business with strategic customer accounts, we've set out an aggressive three-year plan with a laser focus on key measurable KPIs determined to drive value for all our stakeholders in the years to come. With Gorilla technology focusing on leveraging and delivering AI capabilities to meet our customers' needs by providing the best solutions, we find it imperative to reiterate our commitment to operating in the highest ethical standards. We maintain strict compliance with all applicable laws and regulations. We note advances in AI technologies have largely outpaced the development of comprehensive legal frameworks on its responsible use by governments across the globe. Now, as such, Gorilla has voluntarily adopted these principles outlined in our AI ethics policy and is committed to safeguarding customer data and ensuring that Gorilla's AI systems and algorithms are developed and implemented in alignment with the current global understanding of ethical AI practices. Now, in the absence of a comprehensive legal framework, Gorilla has developed the policy alongside guidance from the Alan Turing Institute, a national institute of data science established in 2015 by the universities in the United Kingdom and the UK Engineering and Physical Sciences Research Council. Now, before turning the call over to Daphne to go over the detailed financials I'd like to summarize the progress once again. In November 2022, we laid out four immediate priorities for the coming year. These were, first, to establish a world-class customer-centric team responsible for commercializing Gorilla's technology. Second, to globalize the company to bring our technologies to the countries that are leading the world in smart city adoption. Third, to build a robust sales pipeline that will complement our existing products and services with a special focus on security convergence. And fourth, to transform our business away from a cost plus model and towards a value-based platform as a service model, which will bring in customer stickiness and a continuous revenue stream. I am extremely proud of our team's hard work to deliver on all these objectives so rapidly and I'm confident that we will make even more progress in 2023. Now Daphne can take us through the financial highlights. Daphne.