NextNav Inc.

Good afternoon, everyone, and welcome to NexNav's first quarter 2022 earnings conference call. Participating on today's call are Gary Parsons, NexNav's chairman, Ganesh Pabiraman, NexNav's co-founder and CEO, and Chris Gates, NexNav's chief financial officer. Before we begin, please note that during today's presentation, the company may make forward-looking statements either in our prepared remarks or in the associated question and answer session. These statements which involve risks and uncertainties, relate to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable, and may also relate to NextNav's future prospects, developments, and business strategies. In particular, such forward-looking statements include statements about NextNav's position to drive growth in its 3D geolocation businesses and expansion of its next-generation GPS platform, the business plans, objectives, expectations and intentions of NextNav, NextNav's partnerships, and the potential success thereof in NextNav's estimated and future business strategies, competitive position, industry environment, and potential growth opportunities. These statements are based on current expectations or beliefs and are subject to certain risks and uncertainties that may cause actual results to differ materially. Such forward-looking statements are subject to known and unknown risks uncertainties, assumptions, and other important factors, many of which are outside NextNAP's control that could cause actual results to differ materially from the results discussed in the forward-looking statements. These risks, uncertainties, assumptions, and other important factors include, but are not limited to, the ability of NextNAP to continue to gain traction in key markets and with notable platforms and partners, both within the U.S. and internationally. The ability of NextNav to grow and manage growth profitability, maintain relationships with partners, customers, and suppliers, including with respect to NextNav's Pinnacle 911 solution and its TerraPoint network, and the ability to retain its management and key employees. The ability to maintain balance sheet flexibility and generate effectively deployed capital in line with its business strategies. The possibility that NextNav may be adversely affected by other economic, business, and or competitive factors. including the impact of the ongoing COVID-19 coronavirus pandemic, other risks and uncertainties indicated from time to time in documents filed with the Securities and Exchange Commission by NextNav. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us. You are cautioned not to place undue reliance upon any forward-looking statements which speak only as of the date made. and NextNav undertakes no commitment to update or revise the forward-looking statements, whether as a result of new information, future events, or otherwise. Risk factors that may impact our performance are identified in our most recent SEC filings. Following our prepared remarks, the company will host an operator-led question-and-answer session. In addition, at the conclusion of today's call, a replay of our discussion will be posted to the company's investor relations website. With that, I'll turn the call over to NextNAS Chairman Gary Parson. Please go ahead.

Well, thank you very much, Operator, and welcome everybody to NextNAS first quarter earnings conference call. We're pleased to be here and to provide you an update on the business. And, of course, since we actually recently only spoke with many of you a few weeks ago on our fourth quarter call, I'll keep my overview and strategic comments fairly brief. Joining me on the call today, as you heard, is NextNav's CEO, Ganesh Pataparaman, and NextNav's CFO, Chris Gates. To start the call, I'm going to provide, say, a quick overview of the quarter, and then I'll pass it off to Ganesh, and he'll offer a review of some of the more recent operational highlights. Chris will then wrap up the call with a look at the financials, and we'll then open it up for Q&A. As you will hear today, NextNav is off to a solid start in 2022. We're building off the momentum of last year. We delivered continued execution against our strategic plan in the first quarter. As Ganesh will discuss in greater detail, we expanded our partnership network and key areas such as E911 and gaming for our Pinnacle service. We also added a new vertical, one we've talked about in the past sometimes, but really added something in the IoT or Internet of Things transportation space with an agreement with Last Mile Technologies. As you'll hear more about this in a minute, this partnership is a great example of how the platform we've built, the ubiquitous, resilient location services, can now continue to meet the needs of multiple industry verticals. We're also continuing to make progress on our TerraPoint build-out. Notably, we continue to hold really detailed and earnest conversations with government officials as interest in protecting critical infrastructure and PNT or position navigation and timing systems gain attraction along with the devastating war in Ukraine, which we've all talked about. I guess we spoke about on the last earnings call. We told you last quarter that both the US and European government officials remain highly engaged in discussions around water now becoming very apparent vulnerabilities of GPS, and to then find solutions to meet this growing concern. We're beginning to see promising signs in terms of government interest, particularly as they contemplate how to deal with Russian interference with GPS in Europe and elsewhere. Since we last spoke, budgets in the United States have been finalized, and money has been allocated to areas that are of importance to our business. The fiscal year 22 budget approved by the U.S. Congress includes ramped-up funding for the Department of Transportation to examine next steps following their 2020 technology assessment, which we've spoken about in the past. Both DHS and DOD also secured designated funding, much of which was specifically allocated or targeted towards ensuring GPS resiliency. And we also saw the Open P&T Alliance, of which we are a member, this month publicly recognized the government's growing interest in P&T services. To date, we remain fully engaged with all of these efforts and assessments and expect to be an integral part of the government's roadmap to address these concerns. And of course, I would also be remiss if I didn't remind you Of course, the government funding and the full budgetary process through Congress is a drawn out affair, and it does not produce quick results. Our VP of Government Affairs, Ed Mortimer, is closely involved in the ongoing discussions, ensuring our interests remain top of mind. Because of the momentum we've built thus far, and knowing that this isn't a quick process, we're taking a further look out into next year's budget process as well, to ensure that these key topics remain in the conversation. So with that, let me turn the call over to Ganesh to provide you with the details about the quarter's progress. Ganesh?

Thanks, Gary. Afternoon, everyone, and welcome to our first quarter earnings call. We feel pretty good about where the business stands today and are excited by the many opportunities we have in front of us. In the first quarter, we continued to build off of our strong foundational work that we began last year, signing a slate of new partnerships while executing against the build of our Pinnacle and SharePoint services. To begin with, let me dig into some of our key announcements, starting with the Pinnacle service. We continue to build on our leadership position in the public safety space. As you may recall, back in January, we announced a partnership with the major wireless carrier to provide vertical location for emergency calls to public safety access points. We're continuing to build on this foundation, now making the information more actionable for PSAPs and dispatchers by working with platform providers who enable that end of the service. We're excited about our expansion in the public safety space as our pinnacle technology is adopted by key players in the ecosystem and is now able to provide the z-axis vertical information visually in a way that makes it understandable and actionable for PSAP operators by including an altimeter view, which is really a visual way to show three-dimensional data on a two-dimensional map. To this end, we announced deals with both GeoComm and NextGen Advanced 911. Geocom is one of the leaders in map data and location intelligence for public safety. Using local GIS data and building information, Geocom systems can convert raw positioning measurements received from wireless carriers into dispatchable locations, including building name, street address, and other elements such as floor and room number. Geocom systems are enabled with the ability to take indoor tactical map displays to the next level, automatically highlighting the vertical location from where the 911 call originated in a multi-story building. Next Generation Advanced, or 911, is a cloud-based next generation 911 cloud platform. It's one of the fastest growing platforms to allow for next-gen 911 and call handling solutions with major clients in California and Nevada. NGA's clients will now be able to natively show floor-level vertical information data of incoming calls across its ecosystem and display the location in both 2D and 3D format. In turn, first responders will gain the confidence that they need and those they're dispatched to serve, needing to remain safe in emergency response instances. I'm also happy to report that our large E911 carrier integration project remains on schedule. And we expect to have devices roll out with Z-axis capability later in the year. So we feel pretty good about how that project is moving forward too. As you can see, we've established or continue to establish a solid foundation in public safety market. And we'll continue to look to identify additional opportunities moving forward. Beyond this, we are also expanding our footprint in the gaming and metaverse space. Here, we're working to expand into augmented reality where we see vast opportunities to align ourselves and provide best-in-class location authentication and vertical location services to this fast-growing and nascent market. Similar to our previously announced agreement with Echo3D, we recently signed a partnership with Widogames, a gaming development company that's closing the gap between the physical and digital worlds. Widogames is bringing NextNav's 3D geolocation capabilities to their application enabling more immersive virtual experiences tied to the real environment of users and leveraging location verification to validate transactions and interactions in the metaverse. The application of our technology in this way is the first to be truly able to authenticate location in the metaverse with the use of vertical location, which can prevent location spoofing for something like an NFT treasure or the purchase of a landmark or property in a virtual real estate. mobile game. It'll also enable unique gaming experiences in augmented reality, providing different experiences depending on the floor you're at. As part of this opportunity, Pinnacle technology will be integrated into Widow Games' marquee titled Geopoly, a mobile game that couples buying, upgrading, and selling digital properties tied to the real world with real-time virtual events. Our technology is actually helping them to validate the location, including the vertical dimension and timestamps of users to authenticate attendance, verify transactions, and prevent in-game location-based spoofing. Through geofencing and geolocation, the positioning of specific users in the real world will enable location-based virtual experiences and rewards, authenticating users' presence at virtual events and facilitating interactions with other users in the same location. And finally, while you've heard us We talked about gaming and public safety before, and as Gary mentioned, we're also making moves into other logically aligned spaces where our technology and services can help businesses grow and diversify. One exciting area for us is IoT. Just a few weeks ago, we announced a partnership with Last Mile Technologies. They're a provider of proprietary asset movement and sensor event analysis services to enhance vertical location capabilities for their asset tracking solutions. Last Mile partners with a large number of key providers to enable IoT solutions. With e-commerce services exploding during the pandemic, we view this partnership as a natural next step in expanding the Pinnacle use case. Our partnership with Last Mile enables organizations to precisely visualize and understand the three-dimensional movement of business-critical assets via API, web, or mobile applications to strengthen operations, security, and data-driven decision-making. This can be done without complex and expensive localized on-premise infrastructure or hardware that could otherwise be required to provide location intelligence. Beyond these exciting additions, we have a lot of other partnerships at various stages of development that we will sure to keep you updated as they progress. Now, turning to TerraPoint, we continue to make solid progress building towards the launch of this technology. Expenditures are expected to be modest in 2022 as we optimize the commercial transmitter design, conduct site selections, and overall network planning. Our strong balance sheet and license spectrum holding allows us to maintain control over the pace and scope of that activity from both the capital and technology perspective. As Gary mentioned, we continue to see growing government interest to address GPS and location services vulnerabilities stemming from the unfortunate events from in Ukraine. We remain in active discussions with government officials, both here in the U.S. and internationally, and expect to be an integral part of this roadmap to address these concerns. As we noted last quarter, we're participating in the European Commission's Joint Research Center Alternate Positioning, Navigation, and Timing Conference evaluation in Ispra, Italy. On May 18th, which is next week, they'll be hosting the demo day where we will be showcasing our technology to the European Union officials. We expect the full report coming out of ISPRA with results of the demonstration similar to the Department of Transportation's demonstration to be released later this summer. We'll be sure to update you on this and our performance as more information is made available. In addition to the demonstration at ISPRA Italy, Ed Mortimer, our VP of Government Affairs, and I will be flying to the UK and European Union next week to meet with senior government officials to make further progress on P&T resilience. I'm also excited to note that I've been asked by NASA to participate in a panel on position navigation and timing workshop the following week on May 25th. And I'll be specifically speaking to the current P&T needs and how technologies like NextNavs can meet those needs today and in the future. This is just one of the many efforts we have underway with NASA, and I look forward to continuing to collaborate with them. With that, let me turn things over to Chris for a review of our financials. Chris?

Thanks, Ganesh, and thank you, everyone, for joining us today. We're happy to talk to you about our progress in the first quarter, as well as what makes us excited about the rest of the year. Getting into the numbers, our top line illustrates the beginning of the results from customers and platforms that we signed in 2021. In the first quarter, we recognized gap revenue of $1.2 million, resulting in an operating loss of $16 million for the first quarter. Now, that includes approximately $900,000 in depreciation and amortization and $7.2 million in stock-based compensation expense. Our net loss for the period was $9.7 million. And in addition to the previous non-cash charges included a non-cash income element of $6.4 million related to the change in the fair value of our warrant liability. Our total operating expenses were 17.2 million. And again, including 7.2 in non-cash stock-based comp expense and 0.9 million in DNA. Our balance sheet remains debt-free. On a quarter end, we had $93.8 million in cash, providing us with ample capital and balance sheet flexibility as we work into 2022 and beyond. Now, in terms of outlook, as we've discussed in the past, we remain optimistic about the adoption of our service. And as Ganesh and Gary highlighted earlier in our call, we're seeing that continue to expand. We're also pleased that the implementation of our service with our first national wireless carrier customer for E911 is proceeding on schedule. We'd like to continue to remind investors, however, that as we grow our service, there is likely to be lumpiness in our revenue due to the time between adoption of our service and scaled usage and the near-term significance of certain large customers, including an E911, as we transition to scaled operations. We expect to finish 2022 with a meaningful revenue run rate with variability around significant platform contracts and integration, additional E911 customers, and potential government contracts. As we've emphasized in the past, we maintain an extraordinary foundation for our business, including a deployed national network, 2.4 billion megahertz of top spectrum asset, novel intellectual property, and, of course, our balance sheets. And finally, the final note, while we're watching inflation closely and do anticipate somewhat higher employee and equipment costs, we do not expect these effects to be material at this time. We're also closely monitoring potential supply chain issues. And again, while not material to our business at this time, we are lengthening our horizon for pre-ordering certain long lead components. With that, I'd like to open up the call for your questions.

At this time, if you'd like to ask a question, simply press star followed by the number one on your telephone keypad. Again, that is star one for any questions. We'll pause for just a moment to compile the Q&A roster. Our first question will come from the line of Timothy Horan with Oppenheimer. Please go ahead.

Hey, guys. A few questions. Any maybe update on traction internationally with, you know, other countries? Secondly, can you maybe just talk about do you think you're on track or ahead or behind what your expectations were? Lastly, can you give us a rough idea? I know you mentioned a sizable run rate by the end of the year and revenue. Can you give us maybe some color around all three things like that?

Well, let me hit some of it, and obviously we'll get to Chris on any sort of run rate expectations or other things like that because, as you know, we're not providing guidance right now, and most of it is because we're at still an early stage in this fluctuation where you get lumpiness associated with large contracts or platform integration. I think, actually, I even mentioned the very first call that we had after becoming public And as we look into 2022 specifically, most of what would be seen would be hopefully platform adoption, new partnerships, new marketing, and our ability to successfully penetrate, you know, things like public safety, gaming, IoT, other things like that. And certainly we've been very pleased with what we're now seeing out of the government. but that has not yet turned itself into identifiable government contracts. On the international front, let me turn it over to Ganesh on that. I mean, clearly we're continuing to work very closely with METCOM over in Japan. That's moving along very nicely right now. And as you even saw from Ganesh's presentation, Europe has woken up very much to this issue, and we're trying to move into that area as quickly as we can too. Ganesh?

yeah gary i mean i think tim yes that's on the international front certainly we are seeing um a a greater set of activities both in europe and the uk on on strengthening their pnt capabilities across the board that's part of the reason why ed and i are headed out there to meet with some of these officials because we do see meaningful activities happening there. This coupled with the trial or the technology evaluation at ISPRA, we think will set the framework for a larger push in Europe and UK to enable these types of capabilities. And in Japan, you know, we're actually quite pleased with the progress that our partner METCOM is making in that market. I think we expect to have some further announcements later this year on how they're faring, but I think suffice it to say right now we see both on the spectrum front that the Japanese government is allocating to MEDCOM. And the Pinnacle rollout, we're seeing quite good progress and some of the trial activities that they have currently undergoing.

Ganesh, we probably also want to note because we focus because of the issues in Europe and Ukraine a lot on this critical infrastructure stuff and the governmental interest in TerraPoint. There is a backup GPS resiliency. But actually internationally, we're getting an awful lot of interest as well in the pinnacle side. And we're in conversations with a number of countries on how they may be able to utilize the Pinnacle Service, which does not require a spectrum asset to get underway. And certainly even the METCOM thing in Japan is going to be expected to move forward with the Pinnacle Service as well, too. Do you want to address anything else?

I don't think so, Gary. I think you captured it pretty well. You know, I think one of the things to keep in mind is, Part of the reason we're a little cautious about providing, you know, especially quarterly specific concepts is you get a deal that moves a quarter or even a few months if it's closing at the end of the quarter and it can have a meaningful impact. So, you know, we are seeing appetite. We are, you know, we are signing customers and we are seeing, you know, our revenue base and customer base underneath that growing. we still want to maintain a little bit of caution in terms of specificity in that direction, really, for that reason.

You know, I understand, Chris. I was just wondering if you can give us some color on the run rate at the end of the, you know, in 12 months or 18 months or, you know, I know you said material run rate, just any more color around what you meant by that.

I think not at this second, but we understand the very strong interest in that. What we don't want to do is provide something that is – you know, isn't working in the right direction with the business. I think we want to, you know, make sure when we do start putting expectations like that out there formally that they are extremely well-founded with a great degree of predictability about the timing and the, you know, and the scope.

Okay. And then lastly from me, are the partnerships, the economics and the partnerships and the setup of the partnerships, are they kind of falling in place how you expected?

know are they better are they worse but yeah you know any call around i know you have a lot of them you know i think you can ask yeah yeah ganesh do you want to do you want to get into that yeah i mean i i think uh tim in in the um in the categories that we defined for uh public safety gaming um and and iot i would say it's largely consistent with the frameworks that we've talked about um i will say that in the public safety aspect we you know we we we are seeing product expansion um and so you know the the altimeter view that we talked about uh provides a visualization capability for uh the uh for the desktop side. And there, it's a slightly different model. But it is... Go ahead and say it, Ganesh.

It's richer and more positive for us on that front than what you get from the individual first responders.

Right. It is, because it's on the desktop side, it is a higher value, and it is also on a per-seat or per-user per month type of model, similar to an MAU but with larger dollars associated with it. So I think we feel positive on that front because it is, again, shows expansion on one of the segments as we get deeper and deeper integrated into those platforms.

Yeah, and I think overall, I mean, the loan worker type things, which are a public safety, even if it's in a non-public safety environment, all of those appear to be aligned. What we're seeing out of the 911 contract, consistent with what we've mentioned to you folks before in the past. So I think those things are going forward consistently. The place where I think we're going to have to get more volume because those things tend to need volume before they become really economic is in the data analytics and anything that's associated with advertising and marketing things. So the jury is still out on those, but we have no reason to expect that they won't also follow the patterns that we have seen. Thanks, guys.

Your next question will come from the line of Mike Crawford with B. Reilly. Please go ahead.

Thank you. What were your customer bookings and customer billings in the quarter? Is that something you intend to provide consistently, or was that just a one-off last quarter?

Hey, Mike. Chris, you want to get that one?

Yeah, this is Chris here. I think it's something we intend to provide on an annual basis. But probably not on a quarterly basis, again, due to somewhat the kind of unevenness we referenced earlier. I think we felt that it provides a good sort of capture at year end of sort of what happened over the entire year. But on a quarter-to-quarter basis, I don't anticipate providing that.

Given that one customer was 97% of revenue in the quarter and receivables went to almost zero, can we assume that bookings and billings were extremely low in the first quarter?

We did collect, I think you'll see on our cash flow statement, We did collect significant accounts receivable in the quarter, and it did not have huge billings for the period. That is correct.

Okay. Maybe just one more.

Sure, sure, Mike. And I'll also say that if we get into any of these government contract-type things, We'll also try to, at least when we recognize what those are or tell you what those contracts might be, it'll be important to say over what period of time we expect them to go, because then that'll give you a feel for how the flow of the actual revenue will run. So we'll hopefully do that if there are any one-offs like that. But other than that, I think the yearly or annual basis is probably the best way to do it.

Yeah, Gary, especially with milestone-based payments, You know, that becomes part of the consideration. So we wanted to give a little bit of a forward look into what we had done in the fourth quarter. And then as we kind of worked through the first quarter, of course, we've been delivering against some of those activities. You know, one may imagine that there would be milestone-based payments that are, you know, yet to emerge as we take some of those products into service. Yeah. And, Mike, you said you had another one?

Yeah, I have a couple related to the business, but just first, the stock-based comp was high at $7 million in the first quarter. Is there an expectation that that's going to get back down to like $1 million a quarter, or what should we be thinking about that for this year and the future?

Yeah, that's going to come back down. That was kind of a one-time annual recognition there, and then you'll see with new hirings, periodic stock-based comp, and we'll be sure to continue to report that. We do think that's important to call out so you can kind of understand what the cash impact on our financials really looks like, what our real kind of cash operating expenses look like. But we don't anticipate that magnitude of stock-based comp to be repeated.

And not repeated in, say, Q1 of next year either.

uh that that i don't it it's hard to look that far into the future frankly on on that matter because it's subject to so many assumptions okay well how many people how many people we're adding to the headcount as we're ramping the business that will have some you know obviously some impact on that as well too all right and just um turning to more um uh pleasant matter so on terror point um

you're optimizing your commercial transmitter design and network planning. So, you mean optimizing it for supply chain or to lower the bomb or what exactly are you doing there?

You want to hit that because it's actually a number of different things.

Yeah, it is a variety of factors. I mean, it is to taking into account sort of the, you know, some of the changes in our sort of the supply chain. It is also for, you know, ensuring the form factor, et cetera, are small enough from a cost perspective. And so it's a variety of those factors. that are continuing to occur. Obviously, I think we gave you that update just two months ago. So I think the point is that that process is continuing right now. It's not completed. And we expect that to, again, get finalized throughout the rest of the year, along with the network planning and sort of the market assessment that is also a parallel set of activities that are going on.

Thank you. And then you mentioned the 2.4 billion megahertz pops of lowband spectrum you have in the U.S., but of that eight megahertz holdings, you really need five to enact your tier point plan so are you taking or what should we expect should be the next steps that you take to maybe look to get some additional value out of the other three megahertz of spectrum the other 900 million megahertz pops of spectrum

Yeah, let me address that one, Mike, because that's probably not something we can talk about right now at this point. We're not at a stage where we think that's the appropriate comment. We certainly look at it very heavily and are exploring a number of different options on that front. But right now, it's more important for us to get the initial product rolled out on it. So that's solid for the 5 megahertz. And, you know, well, that's one of those announcements where you'll just have to get it when you get it. We don't want to foreshadow anything.

Okay. Thank you, Jerry. Thank you, everyone.

Again, for any questions, press star 1. Your next question will come from the line of Jamie Perez with RF Lafferty. Please go ahead.

Good day, everybody.

Thanks for taking my question. You mentioned the headcount, and I know you have a few projects. Do you need to increase headcount to get some of these projects for Pinnacle rolled out? Are you going to be subcontracting or doing the work yourself for some of these projects?

Are you referring to, yeah, Jamie, are you referring to some of the product expansion stuff that we've talked about?

Right, like the E911 products. Oh. Yeah.

Yeah, no, we're fully staffed for those types of projects. Currently, I mean, all the Stein customers, we don't anticipate, you know, we're not waiting on headcount to deliver on them. I think where you see our headcount increasing is really on some of the business development, sales enablement, customer support types of factors, because we're obviously gearing up for sort of the volume of customers that we anticipate and also the new verticals and markets that we are going after. So I think that's really where a lot of our expansion is. And so for the projects and the customers that we have signed, et cetera, I mean, that's some of the... you know beauty of the system is is the platform more or less remains the same it's the same sdk and api for a lot of the gaming and the iot types of applications 911 is a slightly different beast and and that's where there's a large integration and and of course that's where we are able to charge an NRE that goes with it, but those projects are well-staffed and we have no sort of or waiting for any hires to execute on them.

And Jamie, a little bit of... Yes, sir. Yeah, a little bit of what you were asking on are we outsourcing it or something like that. If you'll note from a number of the partnerships and platforms that even Ganesh announced in public safety, we could have probably gone out and say, hey, we want to move vertically up the chain and try to provide that same application ourselves. We're not trying to do that. We are trying to arm and equip those folks that are already providing, for example, mapping services or CAD software to the answering points, the PSAPs for the public safety dispatchers and things like that. So there's a little bit of assistance to make sure they use it well and manifest a really good product. But we're not going to go try to build that product ourselves. So, yes, we're getting the leverage from the platforms and the partners rather than having to try to build that much infrastructure or headcount ourselves.

All right, so if I can understand this, basically you're going to support, basically you have what it takes to support the developers in integrating your product into their applications. Yeah. All right, okay. Now, as far as the last smart technology, is this, you know, what, NextNet, is it going to be replaced The old RFID chips that they used to put on shipping containers, because I know those were only two-dimensional, you have a three-dimensional application. Is that the end game to be able to find... Yeah.

I mean, I would say broadly, I guess, Jamie, that I think... In a lot of these cases, what we're providing is complementary capabilities to, you know, allow for the third dimension to be enabled. In the last mile technology case specifically, you know, they are using primarily LTE and Sigfox types of technologies along with GPS, et cetera. So, there we're providing the third dimension to that platform. And what is important is that platform actually gets into a lot of different types of asset tracking types of applications that you talked about. It is certainly possible that some of these markets and verticals, they are RFID given its expense and large localized infrastructure. There are folks that we are in discussions with who like the idea of an infrastructure-free deployment and enablement for an IoT tracking types of situation. And so I think that may happen over the natural course of time. Certainly that's a possibility.

Now you mentioned the end market data analytics is something that you desire to get to. Any other end markets that's interested like defense automotive that might be something of that sort of send NexNav to the next level?

Oh, yeah. I mean, so we are, again, in discussions and working with many of those verticals in terms of the automotive or the drones and eVTOL types of use cases. I mean, we are continuing to see, you know, lots of different partners wanting to leverage our technology to enable that capability because, again, they need that reliable position navigation timing service in the urbanized areas. And so I think we're seeing good momentum there, and over the course of time, we will announce those and continue to see traction there.

Now, some of these are partnerships you just announced during the quarter. Are they signed contracts? I mean, what's the terms on those contracts as far as durations? Are they one-time fees or licensing fees?

Yeah, I don't know if we can specifically talk of specific contracts. I will say they are consistent with the frameworks that we've talked about in the past in terms of You know, in the public safety arena, you know, it may be a monthly active user type of model or as I just mentioned in the desktop side, it's a, you know, essentially a per seat type of model. um in the in the and similarly on the uh gaming side um on the iot side it varies a little bit on a depending on the application to to a perfect type of per api request type of model to something that's more active usage so i think all of those frameworks remain consistent with what we talked about in the past, we don't see significant deviations there.

All right. That's all the questions I have. Thank you for taking my questions and answering them. Absolutely. Thanks, Jamie.

There are no further questions at this time. I'll turn the conference back over for any closing remarks.

Well, thanks very much, Operator, and for everyone who dialed in to listen. I mean, admittedly, it's been a kind of brutal marketplace out there for everybody in the stock market recently, and we'll hopefully see some of these impacts moderate over time here. But we're continuing to move forward with our strategy. We see everything, every action and reaction that we're seeing in the marketplace convinces us that we're on the right track. There's an acceptance of the services and capabilities, both the Z-axis capabilities and then the fuller TerraPoint backup resilient GPS three-dimensional location capabilities. All of those as part of the main story remain consistent. Obviously, we've got to get these platforms up and operational to turn into scaling. So that the revenue that will then follow the magnitude of the opportunity as well, too. But we look forward to breaking you again on next month, next quarter's call. And hopefully you guys have a good day.

Ladies and gentlemen, that does conclude today's call. Thank you all for joining. You may now disconnect.