MIND Technology, Inc.

sale, decline, we repaid and eliminated our high-cost debt, leaving mine debt-free today. I'll now pass it back over to Rob for some concluding comments. Okay, thanks, Mark. Our conviction about the future of mine technology has only been strengthened by our recent achievements. We've taken the necessary steps to streamline our operations and focus our profitability. We believe that this company is in a better position now than ever. Marine technology products continue to penetrate a variety of industries and markets, which I believe is a direct correlation to the work that our team has done to develop and continually adapt our technology to meet the evolving needs of our customers. We believe that the record backlog that we have achieved is just the beginning, as there are still significant opportunities for our CMAP unit and our other initiatives. Market conditions remain favorable, and we genuinely feel that the robust customer interest and engagement that we've seen to date signifies that the market adoption of our product lines is gaining traction. We're confident the mind is headed in the right direction, and we look forward to building on the strong foundation that we've constructed. As I mentioned earlier, the increase in business comes at a price, that being the capital needed to execute the growing business. As you probably know, we did declare and pay a dividend on preferred stock for the quarter ended October 31st, 2023. However, there remains about $4.7 million of accumulated dividends from prior periods, and the ongoing dividends accrue at a rate of about $3.8 million per year. While our liquidity and financial position are much improved, we do not believe that our current operations can generate the capital needed to exploit and grow our business and, at the same time, pay ongoing or accumulated dividends on the preferred stock. Therefore, while no decisions have been made and circumstances can't change we currently believe it unlikely that we will declare further dividends on our preferred stock for the foreseeable future. As we experience this quarter, and if traditionally seen, there will likely be revenue variation between quarters due to a variety of challenges and unforeseen circumstances, as well as simple customer delivery requirements. With that said, we do believe the general trend will be one of increased revenue. Favorable market trends, robust customer interest, and substantial growth of our backlog continues to give us confidence that sustainable, higher-level revenue is achievable. Looking forward, we anticipate meaningful financial improvements in the fourth quarter and in fiscal 2025 as we convert our record backlog to revenue. We're encouraged by the current macro environment and believe that our streamlined, differentiated, and market-leading suite of maritime technology products is uniquely positioned to capitalize on favorable customer demand. We expect to continue adding new orders in the coming months intended to utilize this momentum to drive meaningful shareholder value. And with that, operator, we can now open the call up for some questions.

Thank you. We will now be conducting a question and answer session. If you'd like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question comes from the line of Tyson Bauer with KC Capital. Please proceed with your question.

Good morning, gentlemen. Hi, Tyson. Trying to get a where we are today kind of look at the company, and all this is going to lead up to the eventual question of where we need to get to. You enter the quarter at 37.4 million of backlog. Five to six million of that is because we had deferred revenue that will fall into this quarter. So you have approximately 32 million backlog that is a significant increase from 17 million at the end of July. Where you kind of today and where your backlog stands relative to also your recognized revenue in the quarter, Has that $5 to $6 million been realized already along with your other expected revenue you thought you were going to have? Or is this a situation where the component's delay really has pushed everything to the right of the calendar so we don't necessarily have that catch-up where all of a sudden we have a $12, $15 million quarter? Yeah, so Tyson, we –