Galaxy Next Generation

Q4 2021 Earnings Conference Call


spk_0: the day everyone and welcome to galaxy next generations fourth quarter and fiscal year and a june thirtieth two thousand twenty one conference call this call is being webcast and as available for replay in remarks today we will include statements that are considered forward looking within the meanings of the security laws including for looking statements about future results of operations business strategies and plans or relationships with our customers market potential growth opportunities in addition management may take additional forward looking statements in response to your co
spk_1: questions
spk_0: for looking statements are based on management's current knowledge and expectations as of today and are subject to risks and uncertainties and may cause the actual results to differ materially from the forward looking statements a detailed discussion of such risks and uncertainties are contained in our most recent form tend to form ten k and other reports filed with the as easy the company undertakes no obligation to update any for looking statements to supplement the company's financial statements presented on gap basis galaxy provides adjusted ebitda as a supplemental measurement of it's performance to provide investors with additional insights and allow for more comprehensive understanding of the information used by management and it's financial and decision making surrounding pro forma operations galaxy supplements it's consolidates financial statements presented on a basis consistent with the us generally accepted accounting principles or gap adjusted ebitda as a non get financial measures at earnings adjusted a bit all represent a bit are plus stock based compensation and change and fair value of derivative liabilities galaxy management adjusted ebitda as financial measures to evaluate their profitability and efficiency of the business model the company uses the non get financial measures to assess the strength of the underlying operations of the business these adjustments in the non get financial measures that are derived from them provide supplemental information to analyze it's operations between periods overtime galaxy finds this especially useful when reviewing the pro forma results of operations which include non large on cash amateurization of intangible assets from acquisitions and stock based compensation and this you should consider it's non get financial measures in addition to and not substitute for financial measures prepared in accordance with gap and with that oh now handful flow of to galaxy next generations chief executive officer gary lacroix
spk_2: that humanity and welcome everyone to galaxy year in june thirtieth annual earnings call that mentioned i'm gary lacroix ceo and president and proud to be shady some ballots are past year before turning it over to meghan the gay are step out to share with you the improvements in our year and financials this past year despite the challenges we do it stands for the nation with guy that calculate tremendous dragon boat business development in brain like nation starting with our launch of our coach shield student debts protect are demanding that are launched into school safety and security were able to not only expand our product offering the also our sales and marketing thing that brain some new i years there have already proven their don't beat to increase red meat and six contributor yeah good overall goals we have been awarded family contract and be as as outlined in previous press releases and that started to say those efforts turn into orders up additionally it's that market is stronger than ever as we now have such a diversified thought it offering and a multitude of customer tight that we are really able to capitalize on all areas of the market and or eight to to in either in or refill a model for peace to go as we have develop relationships with it says out that are se geographical derek like as well as i am division as we continue to speak cantonese even outside the us to rebrand are amazing audio and put into amplification products are many vegan facility in arizona also me this year as the kenyan the wrapping up of our alien channel and product line or excited to see how that continues to go into to me too me too with so many changes within the company's operations and the company's financials over the past year at the best that i turned out to make it at this time as we can adjust more specific questions towards the end of the call megan thank you again i'm happy to have you join us on our on earnings call today on as you other the t word strangling pleads with our fourth quarter arm a fiscal year and ah june thirtieth wife when one result of thing executed him to pass they are own our or catholic three point that we have a revenue annual revenue and profit know an annual orders the past midnight or specifically very rewarding item asserting are scalability as we reached are made your mouth are in generating positive nine got a job at a bit off for quarter for all of the an hour contracts awarded catalog weird new partnership the new prada i have enabled us accelerate our revenue growth and achieve that profitability
spk_3: as a lot to the actual army financial statements oligarchy performance indicators continue to track or in the right direction or balance she has continued to strike bang on several examples are the enclave and cash on hand being over half a million at your hand on inventories of probably the largest enclaves than that was due to i have pre paying for a lot of and train that i am and toy for orders that had already been received a total asset class the up to seven point three million and a lot of that was just due to the increase in our internal hard ass that inventory a are that type of thing on we were able to decrease our liability year over year by almost or million arm and some good news and current as a derivative liabilities or because of a new adoption moving forward and que one which of a corner where and now on that one point eight million and derivative liability will no longer need to be reported or largest portion of a liability the three point four million that as with are related rt night is obviously i'm a great thing to have them with the related party that give the flexibility and target moving forward i'm i'm working with pay off and paid out that that
spk_4: and probably the largest improvement without ability to take our shareholders dup a bit from almost eight million downtown a one point four million and with the remove all of the derivative of liability come up in key one hour obviously hope all to share a positive shareholder equity at that time are profit and loss statements can
spk_3: you need to turn upwards of well ah they take a little bit more explanation the understand gap accounting and a public company and how off is recorded representative or in times of thought issuance though i do plan to bite down the piano as well i'm a little while we have no doubt reporting option they have any discussion of than order to shed more light on the term financial stability of our anthony after we look at the that the and l itself an annual revenue of mentioned before break point eight million total orders five point seven different theres we don't report revenue amara not recognize as revenue and photo if an order had partially shirt or not or up at the end user data so there's a there's a gap in what was actually show yep i june thirty and what we recognized as revenue or less of an increase of sixty three percent on the year and a one hundred and seventeen percent of the quarter of the big revenue increased their gross profit also increased five point six hundred okay up to one point seven million for the year off at us
spk_2: a third an indication of we mentioned into for of our product margin of getting better
spk_3: i'll see that the opponent a gentleman administration expensive actually did the truth as year over three million on the we continue to hire new people expand our footprint on our marketing pounds and so were able to date rape our dna expensive both directly reflective of how calls consciously tried to be as we continue to grow
spk_5: oh and the emerging growth
spk_3: company factor this does are therefore reflect the decrease of three point six million and lot of operations which with down to six million this year as reporter on if we do the adjusted even off on number on our law or the off actually thumbs up to three point four million though you know looking into for the quarter obviously being able to show that profit arm we've increased our ability to operate on even even more folks that during during the gap arm reported reported net loss of twenty four met million annually should be noted that it is inclusive of over eighteen million an interest expense derivative liability conversion lights warrants that conversion a clutter up now we're all related to that that conversion that like play hard to january and the early part of our fiscal year because of the way that that type of that was a one night and and a non cash manner we still my for corpus of a lot of the public company on but changing the that to equity and the early part of the year can you have and what a part of what position does it for the current profitability also part of what position that the increase though shareholder equity so much arm and so we do understand the outstanding shares of increase we've been very forthcoming with that and updated ot say it's by of possible harm but because of that and grave and that elimination of the debt there was a reported a larger love under gap than the reality of the three point six million law three point four made him off under our be adjusted a bit off the just wanted to be clear on that part of the financial statement i'm with that dead now being eliminated there and you for sharing and adjusted comfortable enough even all we have the reflection will cross over into the gap accounting and the coming que that apple pay a little bit more of a clear cut your and this is are broken down explained of course in the tank a financial footnote and a state and a cash flow and on on the balance sheet itself i don't look into the most recent quarter key for cotto falls out of our year and we're not required to file separately our foreign earnings report or but because of improvement that will making an buried operation about half of we wanted the album the numbers in the indian i have a ten k for or you'd other shareholders to get a greater understanding about improvement as mentioned before an amount of morning we have established are very first quarter of a profitable company would just over sixty thousand dollars and adjusted eat at all
spk_2: and even if you look at the net loss but our before the adjustment for queue for arm it was one point three million just love quarter and march thirty first move the only one hundred and thirty nine thousand in the quarter on the current quarter ending which of coming up here at the end of the month ah should offer reflect that same and press
spk_3: the arch round this vast improvement in key for with do are driven by to an increase in revenue for the quarter onto over million but author of the truth and operating expenses from two point six million this time last year telling seven hundred fifty thousand dollars and the clock quarter the we believe that the increase in school budget will continue to have the big impact on revenue from our upcoming reporting period we like to continue to successfully built upon arm the following year with a diverse portfolio of product now of dared mention lead bar interactive panel on our bell painting an intercom product line our duty communicator software and now arnage into the cure platform and of course alcohol related alien partner so on the well positioned across the country with our corporate satellite warehouse up with both bread between georgia colorado florida and arizona arm but now about employees and also texas alone the
spk_2: and you call are several key been highlighted associated arm and really over the past few months and in relation to new partnership new build new contract new customers little so come on and even an extension of a contract with our area am customer data
spk_6: five the difficulties
spk_3: kind of thing to blame to many businesses been especially education institute on we're striving and and stronger than ever i personally am looking towards her should go the the twenty twenty two rounding out on twenty twenty one the way that we did have really positioned have to move forward with our plans to be a bigger more respected company and so with that arm i'll conclude ton of are prepared wool mart for today call and move it back to the operator for question
spk_0: certainly think you had have time for your priestly submitted questions the company will do it's best answer all the questions possible with exception of anything forward looking your first question our memory while back when of your update said that your technology was going to incorporate somehow with the road be learning robot is the still the case and do you see a substantial requests for the technology not at christmas is coming to the road he will be in higher demand do have any orders already and what kind of revenue do you protect and predict where this product
spk_3: anja got question thought our relationship with worry about arm of a distributor arm in the air tight market they were a circle consumer right company prior to two up getting on it and joining forces together and there we were gonna roll under the umbrella to be what lloyd a to do are directly to the attack in the school market on current product is definitely very geared toward the consumer on young the and and i think mom you know that they have they i have worked really hard and continue to work on development internally to create a a a product that that fit it and integrate more into like our interactive panel marketed and and to where i'm a classroom at the whole could utilize their technology and so will continue on to work with them closely on on that of a
spk_2: one of the baby's birth internally about that boy be really did was bring to light the need or desire for integration of artificial intelligence
spk_3: one evening and for i thought me on that are more than just the current product offering more than just just avoid day we we worked on and and done a lot of research most recently and the how to employ that that a guy into even our belt aging and intercom products and i'm even more thorough are due to secure products things like ip cameras in the classroom which would allow for a motion detection of of do
spk_2: don't or heat sensors and an emergency situation for outer door locks and so in a we will continue to kind of make not a priority
spk_3: our internal product development having our own engineers having our own software developers have really helped a speed that profit that on and worthy with with them away the one brought that brought that that the bar for for a i ah education to light that are very important partner of ours
spk_7: built an update
spk_0: think you are there any plans to reverse split the stock
spk_3: i'm so the question get buffed obviously are quite a bit and and i hate the study again there's no authorize or plan or a reverse dog well we're focused on continued achievement and advancement in the business on these quarter for financial them in the upcoming que one i will hopefully give it to solid quarters of of profit and and be able to move forward with our plans of of getting on a national exchange rather be and why i your nasdaq on the other several part of that proffer for have this i play we have started having that conversation with are turning
spk_2: i'm and so if there were than a desire need for any viper recapitalisation we will take into account are preferred stock options are out there with my my original investors we would take into account every aspect of the situation and if there was a nice at the end of a diaper recap or or any type of where it would be done in ca
spk_3: injunction ah with that up with to to begin to national exchange and so it will always be done with with the shareholders on first hour long term shareholders
spk_8: in the forefront of our on
spk_0: thank you your next question can you elaborate on the new products released recently preschool security
spk_3: yeah sorry for this is awesome accent fighting part of our business coming in to not just our new fiscal year but that even into to january other the physical calendar year on we have several new partnership that are all related subs goals they've been security and i think a couple months the guy we really to get that back and realize there are communicator software fall buffer that drop our bell page and you can call with now a necessity i'd on in schools versus were historically at had just been on a luxury item to have communication within the building that because of unfortunately for her be be in school shootings and safety
spk_2: the issues that have that have come out over the past twenty years on having and think communication within the school building is absolutely a necessity and their we've seen a ramp up and down paging and or calm and decided that we really should build on that product line on and her with the new partnership with both haven arm haven log and author and force
spk_3: i'm nine one one were able to create the new product fleet that we've we've branded as she to secure though right now are selling the product on as lucky in in school communication device or a communication device with first responders and also the ability to physically lock the door
spk_2: on our software developers are working up in unison every company to come up with be one tight solution which we hope for launch in january of twenty twenty two that will allow an administrator a teacher a safety officer to hurt one button on their cellphone avoid phone or the web you i am an issue
spk_3: eight internal communication external communication directly to first responders and also initiate the lock him in the classroom to create a faith based those are safer and for the students to go to on there's been a lot of federal money obviously board and education this year addition to that there with a lot of trauma important but you know patients with typically personal safety so in are normally hear that are passing of ours obviously to keep our kids are safe and the foods that were already working on but in other it's become a a a dollar value that that we felt was worth the investment the new product line as i will continue to to ramp up bar
spk_2: marketing on that new product and give ya look at much information if we can have it about down until january
spk_0: thank you your next question you have recently announced winning a lot of catalog bids what exactly is a catalogue bid and how does impact revenue
spk_3: a similar thing i can explain the i'm a catalogue bad as a just like any catalog or that you would have and brandy with prices lifted problems and you can dial up and and or the products they either you log catalog bed or that him back they murray been so cold purchasing cycle can sometimes be very the if the product has already gone through a procurement approval process and third catalog bed or way that of go to shred can go ahead and ahead of hum approved twenty product whenever the number as put them in their catalog for their school to then purchase from without having to go out to secondary to cure minute period on that could be extent further or cough cough way to the golden shirt and surfer i have it was important as we wanted to ramp up playing recognition armed the focus on getting on as many other catalog bed as possible before school went back so that the outreach program of ourselves a marketing department you know directly to people that already have that approval to bar and into we've actually seen orders from of the school you know depending on where you're at geographically have already returned freshly on here
spk_2: the felt lonely located along with catalog birds have started turning into revenue for us and and we will continue to target them so were if it's easier cultures across all products first call to buy from us
spk_0: thank you and your final question there was reported net loss increase for the year yet the company seems to be doing very well can you better explained a net loss and how it impacts operations
spk_3: oh yes yes that kind of went through the and be on prepared open remarks on budget to the recaps the question was a specific voice on the net loss reported the twenty four million is under gap accounting and so eighteen million about of the look at the cash flow statement on for it and breaking million but if you look at the casual a statement on the nine cash porsche arm of those financial report i explained how much of that was actually do to that conversion into the market and fair as a public company unlike like a private company we have to account for all thought activity not just as cash actively and so if we back out into you know are adjusted even all numbers which really give a good reflection on how the company is doing and what we should be focused on moving forward on you know that adjusted number go from twenty four million in an annual all on down two to six million if we take out all of the the thought compensation and other issues and then after the adjusted even all it gets with all the way down to display point or million and losses bomb and though of course again with queue for ah we were able to mount report any of those losses after the adjusted eat at all and thirty
spk_2: kind of near really does show year in terms of that that being eliminated and moving forward on that our financial statements war will hopefully start to reflect a more true vision of the company of cash flow operation person to stop compensation and so know again key for was really got great moment for us to be able to say hey we'd we'd made money we crossed over into that profit down and say word fight it on to in the next quarter on september thirtieth and and get that filing out on and how to move forward and in an even
spk_3: quitting manner and time both of our goal and to twenty twenty two
spk_0: with you there were no further questions
spk_3: okay thank you i'm matthew and and in terms of the final bought from the company or in a we appreciate all your support on twenty twenty one fiscal year has been on a transitional one for us and i hope that obviously rounding out the annual report and moving for on give everyone the confident they need an internal bleeding and and what we're doing here galaxy
spk_0: thank you ladies and gentlemen this concludes today's events you may disconnected this time and have a wonderful day thank you for your participation

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