SurgePays, Inc.

Greetings. Welcome to the SurgePays, Inc. 2021 Year-End Financial Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Brian Prenneveau, Investor Relations. Thank you. You may begin.

Thank you, Operator, and good afternoon, everyone. Welcome to the Surge Pays 2021 Earnings Webcast and Conference Call. Today's date is March 24, 2022, and on the call today from Surge Pays are Brian Cox, President and Chief Executive Officer, and Tony Evers, Chief Financial Officer. Before we begin, I'd like to remind everyone that this call may contain forward-looking statements as they are defined under the Private Securities Litigation Reform Act of 1995. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. For a discussion of such risks and uncertainties, please see SurgePay's most recent filings with the SEC. All forward-looking statements made today reflect our current expectations only, and we undertake no obligation to update any statement to reflect the events that occur after this call. Also, during the course of today's call, the company will be discussing one or more non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are included in a press release we issued this afternoon. Copies of today's press release are accessible on SurgePay's investor relations website, ir.surgepays.com. In addition, SurgePay's Form 10-K for the year ended December 31, 2021,

also be available on the surge pays investor relations website and now i'd like to turn the call over to president and chief executive officer brian cox thanks brian and good afternoon everyone during today's call i'll provide an overview of surge pays performance in 2021 i'll discuss our future and 2022 expectations tony evers our cfo will review the annual financial results in more detail and then we'll open it up the call for questions later 2021 was a transformative year of results and accomplishments for the SurgePace team. Our key objectives, including access to capital, liquidity, and long-term shareholder value, hinged on achieving a listing on the NASDAQ exchange. This was without question the most important accomplishment since starting this public company journey almost four years ago. It was a bumpy road. We got thrown a few curveballs with COVID and some other things along the way. But our team persevered, and in November 2021, we completed a capital raise that netted the company approximately $20 million, and we completed our listing on the NASDAQ exchange. There were several other notable achievements and moves made during 2021 that I'd like to highlight. We made the strategic decision to focus on driving profitability with existing customers and eliminating unprofitable customers. Our executive team set out to focus inward to explore margin expansion and pursue strategies to be more financially efficient while building the foundation for rapid sales increases. While our top line sales for 2021 did not increase, we reduced our monthly burn and cut our yearly operating loss by almost 50% compared to our 2020 numbers while still achieving similar top line sales numbers. These numbers improved month over month and trended towards operational positive cash flow. perhaps the most transformative part of 2021 was our push to provide mobile broadband to underserved communities through the affordable connectivity program or atp originally called the emergency broadband benefit or edb this program allowed eligible allows eligible households to receive a discount on their monthly broadband bill of up to thirty dollars the infrastructure bill late in 2021 transitioned this program from the emergency benefit to a permanent connectivity program benefit. We launched our surge phone mobile broadband subsidiary in August of 2021 to take advantage of this opportunity. We couldn't be more proud of the growth in this program and the customers we are helping. Making home internet more affordable makes getting homework done, applying for jobs and receiving higher quality healthcare easier and more accessible to low income households. We started with zero customers in August and ended 2021 with over 30,000 mobile broadband subscribers. We surpassed 65,000 mobile broadband subscribers in early March, and the growth continues at this trajectory. We are currently licensed to offer this program in 14 states, encompassing approximately 25 million qualified households. We announced an initial target of 200,000 subscribers by the end of this year, but given the daily subscriber growth of our sales team, We believe this will easily surpass that number. Throughout March, we were consistently signing up over 1,000 subscribers per day. Not only is this providing access to essential technology for underserved communities, it will drive significant revenue growth and margin expansion for the company. Each subscriber provides $30 on monthly recurring revenue, month after month. This includes the cost of equipment and commissions paid to salespeople, Factoring that in, our growth margin is approximately 40% per scriber, remembering that we do get a reimbursement on the tablet device that we provide to the customer on the onset of enrolling them in the program and signing them up as a consumer and a customer. This new business has become integral to our overall strategy, and it's even more exciting because it's a perfect complement to our existing business of providing financial services to underbanked and underserved communities. Our suite of financial and prepaid products essentially includes converts corner stores and bodegas into tech hubs for underbanked neighborhoods. In February of this year, we launched our Bitcoin sales platform. This program enables local convenient and neighborhood stores to sell Bitcoin to customers for amounts between $50 and $1,499. Keeping in mind, this is without a bank account or credit card. We also do not use ATMs. We rely on the store clerk and the trust that they've built over the years serving their local communities. Customers simply download one of the many digital wallets available on their phone or tablet, and the clerk becomes their virtual financial teller, facilitating this Bitcoin purchase at the register using our web interface app while checking out at the register. To be clear, this isn't for investing in Bitcoin. I wanted our company to be at the tip of the spear grassroots level for adopting Bitcoin or digital currencies for actually use enhancing the lives of of underbanked and underserved folks in our country. Corner stores, bodegas, and local convenience stores are profit partners that provide prepaid debit card, wireless card minutes, and cash to digital currency conversions, as well as capture data and build a loyal consumer base using our ever-growing network of fintech-providing software. These communities historically have been overlooked by larger corporations. And we saw an opportunity in this largely untapped market. Most people don't realize there are approximately 100 million Americans that are either unbanked or underbanked. It's almost a third of the country. That means they don't have access to checking and saving accounts or credit cards. Everyday transactions that most of us take for granted, especially assuming most of you listening to my voice are in the investment class, These are not available, the luxuries that we are used to and take for granted are not available in the underserved communities. Their local bodega or convenience store or community store market becomes their trusted partner for obtaining and reloading their debit cards, adding minutes or paying their prepaid wireless bills, and sending money overseas to family. With the addition of surge phone wireless in some of these same communities, we believe our infrastructure positions us at the grassroots level It allows us to serve the underbank market better than any company in the sector. We're looking to corner the underbank market both in the customer's home through the direct-to-customer model where we are allowing these customers to connect to the internet, we're enabling this, and also through the community's markets where they shop. We have a B2C and a B2B product that brings us in both sides encompassing this market. Our ability to grow our mobile broadband subscriber customer base and increased store count has significantly increased across the board. With the company's strategic position solidified, the balance sheet improved, and the product offering growing, we anticipate revenue growth significantly growing in 2022. By the end of 2022, we expect to be at a sales run rate of 130 million per year with a higher margin sales. We anticipate revenue growth will be evident in the first quarter of 2022 and will accelerate through the year. Moving forward, we will be talking about adjusted EBITDA as a way to measure the operational progress of the business. And Tony will provide some more details on that in just a minute. We anticipate that revenue growth starting in the first quarter of 2022 will translate to positive adjusted EBITDA in the second quarter of 2022. For the full year, we anticipate generating greater than $15 million in adjusted EBITDA. Keep in mind that a new subscriber base produces a loss of $20 for the first two months. This is on our mobile broadband once we're paying commissions and we're covering tablets and the initial cost, the cost per acquisition. After that initial period, a new subscriber drives high margin reoccurring revenue every month. We intend to continue growing and focusing on the long-term opportunities, even if it means a lower adjusted EBITDA in the short term. Our goal is long-term shareholder value. Our target of 200,000 mobile broadband subscriber activations by the end of the year is based on our license to operate in 14 states. We are working to be licensed in 20 to 30 additional states by May of this year and would anticipate higher subscriptions along with that. We have a goal to reach 1 billion in annual sales with profitable growth, and I want to stress that last phrase, profitable growth. We have made significant progress since this time last year. 2021 included a lot of bumps and bruises, but the entire team stayed focused on the long-term vision of the company, and we ended the year in a much, much better position. Revenue is growing, profitability is increasing. We are now operating a business that has the ability to grow organically and through accretive acquisitions while simultaneously making money across our core revenue channels. Now I'd like to turn the call over to Tony to provide a brief review of our financial results before summarizing today's call. Tony?

Thank you, Brian, and good afternoon, everyone. I will begin my overview of 2021's financial results. For the full year of 2021, we reported revenues of $51.1 million compared to $54.4 million in 2020. This 6% decrease was primarily attributable to a $10.2 million decrease in prepaid wireless business as we rationalized stores to focus on profitability. Gross margin in 2021 improved to $6.2 million from $2.5 million in 2020, a 150% increase. Loss from operations decreased 41% to a loss of $6 million in 21 from $10.1 million in 20. As part of our strategy to improve the foundation of the company, we conducted a thorough review of our infrastructure, software duplicity, and excess products and customer base. We focused on profitable products and customers while eliminating non-profitable components of our business. Also, we transitioned from our software development phase to the growth phase. SG&A expenses decreased $38,000 for the year, primarily due to decreased web hosting internet costs and a reduction of bad debt expense. Net loss for the full year was $13.5 million, or a loss of $3.09 per share, compared to a net loss of $10.7 million and a loss of $5.02 per share in 2020. We are introducing our adjusted EBITDA calculation as we believe this is a useful measure of the performance of the ongoing business that excludes many non-recurring items. Adjusted EBITDA improves to a loss of $3.9 million in 21 from a loss of $8.1 million in 20. As Brian mentioned earlier, with the growth in revenue and profitability from higher margin customers and products, we would anticipate becoming adjusted EBITDA positive by the second quarter of this year and generate at least $15 million overall in 2022. Turning to the balance sheet liquidity and cash flow, our cash balance as of December 31, 2021, was $6.3 million compared to less than $700,000 at the end of 2020. Inventory increased by more than $4.2 million at year-end as we made significant upfront purchases of phones and laptops as we prepared for the hypergrowth of our mobile broadband business. We have minimal debt as we spent much of 21 cleaning up the balance sheet to position us for growth and improved performance. Given our strengthened financial position and capital structure, our cash allocation priorities now focus on investing in the business and maintaining ample liquidity for future growth. I will now pass the call back to Brian for some closing remarks. Brian?

Thanks, Tony. I think it's important to recognize we're not surprised at the success achieved in 2021 and the opportunities in front of us. This was a part of our strategic plan. Our team has worked tirelessly building a foundation for this type of growth. The underbanked and underserved market have been overlooked for far too long. I've been involved with this market for 20 years. Our goal is to provide essential financial services and access to mobile broadband to these families and communities. We believe we are cornering the underbank market both at home and where these customers shop. We believe the infrastructure that we've built positions us to serve the underbank market at a grassroots level better than any company in the sector. We couldn't be more excited about the opportunities ahead, and we look forward to sharing our progress with our shareholders, employees, and partners. I want to thank all the employees at SurgePays for their hard work. It's been a long road, but they've persevered and stayed focused and believed and followed And they've gotten us here. Lastly, I greatly appreciate the support and interest of our shareholders as we continue this journey of growth. And before I take calls from you guys, I'd like to take a moment, take the liberty to acknowledge one of our fallen friends, Anthony Nuzzo. He greatly contributed to us getting to NASDAQ. Great friend. Will be missed dearly. So now I'd like to open it up to questions.

Thank you. At this time, we will 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 tool 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 Michael Diana with Maxim Group. Please proceed with your question.

Hey, thank you. Hey, Brian. You mentioned that your goal for wireless customers is 200,000 by the end of the year, and you think you're going to easily beat that. Do you envision being able to get even more customers in 2023, or does this thing sort of stop?

Hey, thanks, Mike, for the question. No, I believe that there's a good run rate of at least two years. The Miami Herald put out an article a couple of weeks back where they showed 30% of the state of Florida, which we feel is like a good cross-section of the country. You know, Florida is not a rich state, not a poor state. It represents the country well. 30% of the state of Florida, about 6 million folks qualified for the ACP program. So those are households. And you extrapolate that out, there's a tremendous amount of business, and we've got a ton of momentum. Our company was built with my philosophy of sales and aggressive compounding growth. And as anybody that follows us knows, we're diligently working to get in additional states, and we hope to be able to report some good news about that soon. But once we have the geography that's nationwide, that also allows us to not only do the In the community enrollments where we have the tents, where we put up in the convenience store parking lots, where they come in and they sign up and they enroll, having a nationwide geography map allows us to go online sales now because it's very difficult to do geo-targeting and ads of customers when you have 14 states, 12, 14 states spaced out across the country. But when you can blanket, it becomes a far more cost-efficient cost per acquisition to enroll customers online as well. Additionally, we're going to kick the initiative off and should be about Q3 of this year for our prepaid retail wireless company to aggressively go after the existing market we have and upsell our customers. And by that, I mean right now there's limited one per household subscriber. So as we move closer to 100,000, don't think about 100,000 people with our product. Think about 100,000 homes, apartments, condominiums, where we are the source of internet. and we have a direct communication into that household. Well, now we can come at these customers with a very, very aggressively price due to our structure and our cost and our economies of scale. We can come at them with a very aggressive family plan that would be more of a retail-oriented plan, cut the price out there where we would be the lowest provider of wireless service in the prepaid market. So we do have a strategic plan not only to continue to grow the ACP program at the rates you're seeing now and keep ratcheting that up, but also branch out and leverage what we're making to expand roots, no different than a tree system, and expand other products to those consumers in their household.

Okay. That sounds great. Now, I know you have a huge opportunity here with ACP, and you've jumped all over it. You're also pursuing the other leg of your strategy, are you not, with a sales team?

Yes, absolutely. We're deploying that right now. These are internally too siloed off. If you want to call them a division of the company, we have people solely focused on refining, honing our direct sales team. And that's training in-house salespeople, onboarding them, getting our, our, where we can reward them, entice them to come work for us, but also keep the carrot in front of them where they wake up in the morning with think two things. more stores more sales per store really looking forward to seeing some of the results that's going to take a little bit it's just like selling real estate they've got to get in you know we're adding you build the relationship you start up selling products so we look to really see traction on that by q3 of this year as again as we're adding in-house sales people and I think it's important to note of the 8 000 transacting stores on our network those all came from independent 1099 representatives So it's very difficult to push new products through people that you don't, and I don't say control, but you can't tell them and incentivize them exactly what to do. So we do feel like coming at it from more of a relationship standpoint as opposed to compared to merchant processing for credit cards where they have ISOs where they just bring on the store and go down the road. We do expect to see both our stores increase and also sales per store increase.

Okay, great. Thanks a lot, Brian. Sure, thank you, Mike.

Our next question comes from the line of Ed Wu with Ascendant Capital. Please proceed with your question.

Congratulations on the quarter and on the year. My question is, have you noticed any change in competition, particularly as you're ramping up to, of course, 200,000 subscribers?

Hey, Ed, that's a good question. I think what the competition has noticed a change in us, better said. You know are my one of my biggest challenges that I have right now as a matter of fact It's next on my legal pad here after this call is balancing growth and my I'd say insatiable desire to grow as fast as we possibly can while managing the cash flow side of things keeping in mind that we need to bring that tablet device in-house and And then we put that tablet in a consumer's hand and that reimbursement comes about 30 to 45 days later. So growing at a thousand a day, you got, you know, you're doing the math on that. We've got millions in inventory out in the field, millions in receivables coming in reimbursements. So there is a management piece where I could grow faster, but where we are right now with the stock performance or, you know, our overhaul, excuse me, market cap and our cap table, I'm not willing to go out and just hit the easy button and sell stock for more money. Obviously, we've got a pretty interesting story. We're getting offered some pretty aggressive things out there right now. I'm just not willing to do it. We feel like we can grow organically and using cash flow strategically, working with lines of credit with distributors, working with lines of credit from folks that are facilitating the sales for us. So we're doing everything we can to really protect that overall shareholder value but grow as fast as we can. I do believe that, again, our shareholders are feeling the pinch. Excuse me, not our shareholders, our competition. The competition, we've got a line of, I'd say, at least over 100 people out in the field that want to come sell for us in various regions that we've got a backlog of that have already been background checked, already been checked into, already ready to go, that we have not been able to send tablets yet because we need to make sure and take care of. of the folks we already have selling for us. So I think what's going to happen in the, from a competitive standpoint is, you know, all of us are going to look for creative ways to gain customers and to maintain those customers and to keep growing. What's unique about surge phone and surge pace is we're not just a one-off mobile broadband or prepaid wireless company. We have access through our integrations with Amazon, through our immigrations with any ability to, incentivize people with you know five dollar itunes gift card that's texted to them digitally same with with amazon like i said the integration with amazon to be able to incentivize people uh send them you know five ten dollars in amazon cash that loads directly on their app so one of the unique things that we have that's really a competitive advantage we're already integrated with almost every other type of underbanked product whether it be prepaid or financial and again if we're able to go out there a and offer a product in rural america that would normally cost the customer for talk text and data let's say 65 to 80 bucks and we're able to offer that same product then for 35 bucks and still make the same margins that you're seeing in the acp i mean it's pretty significant and also we're going to keep those customers so we feel like our retention will be very sticky as we further ingrain ourselves in the market

Great. And then my last question is, what's the biggest challenge to expand beyond the 14 states?

Ed, that's a loaded question. The biggest challenge would be obviously the ability to be licensed in those states. I think, you know, as we've put out there, we're aggressively working and we feel like we're close to being able to add at least another 30 states, hopefully here in the next couple of weeks, but definitely by May. So I think if you keep an eye out, you're going to see some positive updates on that. As a matter of fact, internally, we're already making preparations, scouting out different states that we expect to be in.

Great. Well, congratulations, and I wish you guys good luck. Thank you. Thank you. Thank you, sir.

Our next question comes from the line of Adam Waldo with Lismore Partners. Please proceed with your question.

Good day, Brian. Thanks for taking the questions. Hope you can hear me okay. Sure. Hey, Adam. So I want to explore two topics at a high level. One is the Logix IQ near-term spinoff, and the second is getting a little more granularity on the guidance that you put out in today's press release for at least $130 million in revenue in 2022 and at least $15 million of adjusted EBITDA with exiting the year at 200,000-plus subscribers for the mobile broadband business. So starting with the Logix IQ spinoff, subsidiary near-term spinoff. Am I right to understand that that business has run rate revenue in the low 20 millions annualized with EBITDA margins that are profitable, the business being cash generative and EBITDA margins that look fairly typical for a SaaS business?

Hey, Adam, let me kick that question over to Tony just to verify 100%. I don't want to overspeak. I believe what you're stating is right. Tony, can you chime in, please?

Yeah, absolutely. Yeah, the revenue for Logix is, as you said, in that low 20, probably going to be around 2021 is what we're looking at for 2022 in the margins, somewhere in that 16% to 20% range.

Okay, and that's the EBITDA margin then, Tony? Correct. Okay, that's very helpful, gents. And then so building on that, I mean, you know, those kinds of businesses often traded two to three times revenue as standalone entities in the public market, sometimes higher depending on the incremental margins with growth and the growth path ahead. Is it your sense that in the public market post-tax-free dividend spinoff that could trade at, you know, $40 million to $60 million? of enterprise value or more than the current enterprise value of the entire company?

You know, that's a good question, and that's one of the late-night banter ping-pong balls that we bat back and forth. You know, first of all, we do feel like as we keep performing on the surge pay side that we're going to be in a different position than we are now as we keep executing and showing our ability to do what we do I execute the plan that we let out, and as we let people know what the plan is and the fact that we're doing what we say, we do feel like that will take care of itself as we work hard and as we're getting out there in front of shareholders. So I do want to say that, one side of that. The other is this. Logix IQ got to this point with me, Tony, our management team, pulling over most of the profit. from the company. And I'd say the gross profit from that subsidiary and using it to fuel our surge pays machine. I know FinTech for the underbank. I know telecom for the underbank. I'm very familiar with scaling companies significantly and rapidly. I fueled what I know and what I do best. And my goal was to get to NASDAQ first and then to spend this out. So because of COVID and some other things that hit us, we used Essentially, I funded the company along with the profit from Logix to get us across those lines. I believe when Logix is a freestanding entity and the goal of everyone working under that roof is to make Logix the strongest, most fantastic entity it could be, and they're able to unleash some of the products that are in the pipeline. For example, they've built several really, really cool products that just need a little bit of funding to get out to the market. They've got a blockchain DocuSign product. It's really, really cool digital signature product that they've created as a solution for some of the components of their business that they already do. They've created an ability because they have this business intelligence or BI interface so that the client will spend more money. when they have comfort with how that money is being spent. They were able to take that one rung up the food chain and build a really cool software interface, almost like a Twilio type interface that is kind of a what you see is what you get interface that hedge funds can use that fund mass tort litigation for law firms. They can see how their capital is being deployed, how it's being spent and the results on their capital. So those are just two products alone, not to mention they've got, they've been working on some case management, Software for law firms that would go beyond just the mass tort litigation. It would actually be to help manage cases. And then expanding beyond just law firms. I think that's the future of Logix. It's going to be an enterprise software company that would provide solutions to firms, whether it be financial firms, law firms, and the likes. Right now, it does what it does best. It creates good revenue. I took the money. We pulled that over to make sure we bolstered surge pace. to get us across the line. So thanks for your question. Long and short, I do believe that that is at least where it's going to trade. And I think it'll flourish once we push that out.

Okay. So it seems like $40 to $60 million public market enterprise value is a conservative view for us and a tax-free dividend to existing shareholders is the plan. So what timeline do you see for that at this point, given the SEC process?

Well, we're a little bit at the – I don't want to say the behest of the SEC, but we're following through. Anybody that's ever gone through the S1 comments back and forth, volleying with the SEC, that's where we're in right now. We feel like we've got it within reach on the comments. You know, the comments left are not controversial. They're more accounting and basic structural. So we're working through those. One of the reasons, you know, filing these numbers, as you know, numbers went stale. a little while back, or I believe we'd be a little bit further down the road, but by doing this filing of the K, it'll enable us to send our already ready S1 for the next turn. So hopefully they come back here in the next 30 days with either fewer or no more comments and we can get the show on the road.

Okay, and then once they'll come back and you'll resolve your final comments, it's a pretty quick process after that, right, to just basically dividend it out through your custody agent to the various shareholders, right?

What we believe that we're going to do is there will be a period of time that the dividend, I believe at least six months before that'll be, it's saying dividend, I think I'm making a verb, you know, making something into a verb there, but a disbursement of dividends, because I believe the way that it's going to work is we'll have to give a six-month runway to the folks that as the capital race to qualify for nasdaq as i understand it so most likely based on what we went through with the surge pays up list there will be again a six-month runway for the folks that were involved in the capital raise to do the spin-off and the listing and the qualifications uh for logics uh that they would have that runway and then you know based on Really bluntly based on how, you know, it affects shareholders in the most positive light, the right time to actually disperse those dividends.

Okay. So if you're saying six months run away from the November capital raise, that takes us in the late second quarter of this year, call it mid-year 2022, assuming everything wraps up fairly efficiently here with the SEC. Is that fair for issuing the dividend? I won't use dividend as a verb, either issuing the dividend or existing dividend. Shareholders tax-free.

Yeah, I don't want to be pinned to the mat.

Okay, fair enough. Somewhere over the summer, maybe.

It was completely up to me, Adam. I mean, I would feel more comfortable. But considering that we have NASDAQ, SEC, investment bank, there's other people that are at the table with us. But at the end of the day, look, I'm just shooting straight, and I always have on these calls. Um, you know, I'm the largest shareholder of the company. So, uh, our, our, our officers are also the largest shareholders and we've got a really, uh, we've got a board interested in the big picture. So we're going to make that decision based on what's in the best interest of shareholders overall. And, you know, six months from now, Adam, the way that we're growing across the board, I mean, it's, it's, I think it's a totally different conversation anyways. So we'll see, um, you know, does that revenue. uh you know do we need that revenue using air quotes uh for the consolidated revenue is there a reason anymore to have non-underbanked non-fintech non-telecom revenue uh if not then yeah and if it makes the right sense if logics is rocking and rolling yeah i think we'll go ahead and disperse the dividends of the shares of logics okay fair enough and then so should we uh then take the guidance that you issued today for 2022 130 million of revenue at least and

$15 million of adjusted EBITDA at least to include LogixIQ for the whole year, or would that exclude LogixIQ? Should we think about that as a continuing operations kind of outlook? How should we think about that? That's my last question. Thank you. Tony, can you chime in?

Yeah, for the full year is what we've anticipated at this point.

Okay, so you're really giving guidance today for at least $130 million of revenue and at least $15 million of adjusted EBITDA for, let's call it, continuing operations of search pays excluding Logix IQ subsidiary, which you intend to spend off over the course of the remainder of this year. Is that a fair conclusion?

Probably the opposite. Oh, I'm sorry. Yeah, it includes Logix for the full year because, again, To the point, we don't have a time period set in stone, and the EBITDA does include Logix for the full year at this point.

Okay, so based on the EBITDA margin guidance you gave, kind of mid to high teens, Tony, we're looking at $3, $4, $5 million of EBITDA from that in that adjusted EBITDA guidance overall, $15 million. We're looking for $3 to $5 million of that to come from Logix IQ. Is that a fair conclusion? Thank you.

Yeah, probably on the lower end of that, but yes.

Thanks very much, gentlemen. Continued good success. Thanks, Adam. I appreciate the question.

Ladies and gentlemen, that's all the time we have for questions. I will now turn the call over to Brian Cox for closing remarks.

Hey, thank you, operator, and thank all of you for your interest in our company. I just wanted to wrap. I appreciate you persevering through our discussion today, and please stay tuned to what we're doing. We could not be more excited. I can't wait to have this call a year from now and be able to report back to you guys what we've done and the fruits from all the labor of the last four years of building the infrastructure, significant investments of time, energy, and capital, and doing so and growing so at a rate that's strategic, intelligent, and protecting the All of us on these calls are actual positions and doing as much as we can to avoid dilution while still growing as fast as we can and really getting out there and attacking and getting a foothold in this underbank market. I appreciate you guys, appreciate the time, and thank you. You have a fantastic evening.

This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation, and have a wonderful day.