Realbotix Corp.

Welcome, everyone, to the RealBotics investor call for 2024 to present our audit financial statements. On the call today is the management team, including myself, Andrew Kegel, the CEO, Jennifer Karkula, our head of communications, Martin Boy, our CFO, and Matt McMullen, our CEO, chief visionary and creative genius behind the products. We're going to play a short video here just to get things started. around our experience from CES earlier this month. After that, I'll make some additional comments, and then we'll open up the line for questions via Jennifer. Jennifer, if you can queue that up. So, CES is the very first conference that we attended. It's the first time we ever displayed our products to the public. The response was highly positive. It was reported to us that there were over 1,000 articles written on the company, several TV spots, Fox News, CBS, lots of viral videos that got millions of views. And amazingly, we were told we got over 4 billion media impressions globally. I think that outside NVIDIA, Realbotics may have received the most media attention at what is considered to be the largest electronics show in the world. You can see here some of the highlights from the show and different things that we did. And obviously, later on, we're happy to take questions. There's, you know, a ton of media all over the place on the internet on various channels with respect to our products. I think coming out of CES, management feels very confident that we're on the right track. And if anything, we may have underestimated the market size for our products. You know, the feedback from larger technology companies to what we're offering is also very positive. So going back to 2024, it was a year of a lot of change and expansion. While the financial statements that we released yesterday only contained one full quarter of real botics in those numbers, the changes were obviously meaningful. Those are all highlighted in the filings and in the press release. I mean, the key thing for 2024 was that we expanded into AI and robotics. And as that business grew, we made the decision to focus more in that area and then ultimately to rebrand to the name Realbotics, which better reflects our focus moving forward. As I said, all of these changes are summarized in the press release and the MDA and in the AIF, which were filed yesterday. With respect to where we are, we continue to make headway into finding new ways to scale our production of robots. So, for example, we're in discussions to outsource the building of certain non-proprietary parts and maintain the key IP manufacturing internally. This will help us increase our production figures significantly without having to spend a ton on building a new facility in the near term. Our latest AI version is in beta testing. We expect it to be completed in the coming months. I think the way you want to think about it is when you have an app and, you know, there's upgrades that keep coming out or even new mobile phones, you know, we continue to invest time into making our products better and integrating better. And there's always that fine line of trying to make our stuff, our software and our hardware integrate seamlessly together. Our new robot controller, upgraded robot controller is close to completion. We expect that ready soon. We're continuing to work on elevating this new vision system that we've had, and we think in a few months that'll be ready to integrate across our robotic platforms. Our unique open-source robotic hardware is getting to launch compatibility with ChatGPT, LAMA, Gemini, and DeepSeq from China. The concept is that you can buy our robots and choose what AI you want to run through the hardware. That would also obviously include our own IP and our special lip sync technology that can articulate words in a similar fashion to a human. This will also be integratable with most major languages across the world. We did do some stuff at CES where we had the robots speaking in Spanish and Mandarin. Moving forward, we're continuing to be focused on growing our marketing, sales teams, AI, hardware. There's a lot of stuff to do. And, you know, we're still at an early stage, but super excited. As well, we're exploring looking into uplifting to a U.S.-based exchange to make it easier for U.S. investors to buy our shares. Overall, we're excited for the future. You know, a quick note on the accounting. Obviously, I don't believe necessarily that the accounting accurately reflects the value in our business and that many key aspects of our technology and our IP are not recognized. That just has to do with sort of accounting rules, which I don't think necessarily reflect reality. We believe we have some of the most interesting and unique robotics and AI technology available in the world today. And certainly, if anybody who visited our booth at CES would have been validated in our progress and in the products that we're doing. I would encourage people to visit our websites, Realbotics.ai for investors and Realbotics.com for customers. Maybe with that, and again, we can open it up to questions. We have Matt here and Martin and myself to answer things. So I'll turn that over to Jen after that quick summary to answer the questions.

Yeah. So if anybody on the call has a question, please press the raise hand function on the bottom. I'll give you access to speak. So our first question is from Dan.

Hey, Dan, go ahead. Sure. Hey. So can you expand on the pipeline as you envision it after CES? You know, what kinds of orders might you be looking for on a go-forward basis, or even just the interest that you're seeing from the businesses that inquired things?

Yeah, thanks, Dan. So we've had a tremendous response post-CES, I'd say upwards of, you know, somewhere between 75 and 100 different inquiries for people looking to order products, which has made us work really quickly to, you know, create, you know, the process so far is, you know, there's a bit of a consultation, but to sort of for us to upgrade that ordering process, The primary interest levels that we've been seeing have been from corporations. We haven't seen a ton from individuals. It's primarily large organizations and groups that sort of saw our project live at CES or some of the videos that have been going on, and they've reached out to see how we can integrate our product into their business. And that's anywhere from schools, pharmaceuticals, hospitals, electronic companies, software companies, it's really a wide gambit of sort of interest levels, but it's been primarily all corporate. Dan, did you have any follow-up to that, or does that answer the question?

No, I mean, I'll get back into the queue from there, but I could ask questions continuously, but I'll get in the queue and then raise my hand again. Okay.

Okay, the next question is from Greg. Go ahead, Greg.

How would you characterize the company? I'm not trying to put you in a box, but do you feel you're more of a hardware company or a software company? I'm looking for your own description would be one question. The second would be where is it that you think the accounting restrictions don't match up with what you perceive to be the real underlying value of the company?

Sure. So I'll answer the first one, which is we see ourselves as both, you know, where we have sort of done something very different is while other robotic companies are focused on making robots that start from, you know, I think Matt had said it really well, which is sort of, taking a mechanical component and then trying to backfill it to make it have a human shape. We've always started with the idea of starting with what the human shape looks like and the technology we have around skin to make the robot look as human as possible and thus easier to interact with in social environments and for interpersonal. Our viewpoint is, number one, we have this open source hardware, which is compatible with, you know, various forms of AI, and we're planning to start integrating that in. We have a timeline for that over the next few months. And we think there's an entire business there for that. And so, you know, universities contacting us because they want to test out their AI in our robotics, you know, but the ability to plug in chat GPT, there's an entire market there for, again, using existing AIs. But the second part of it is that we want to be able to have a customized AI for the client. And so, you know, as an example, we talked to one person who was a pharmacist, and he asked if we could help him create an AI which could communicate with his clients and discuss things like dosages, what types of drugs are compatible or may have bad reactions with each other, you know, what should be taken day or night. And these are the types of things that could save him a lot of time by programming this AI into sort of a robotic bus or something that can then interact with people at his pharmacy. So we also want to, you know, look at ourselves as a software company and that we want to create that sort of customized touch of AI, which we build on top of open source. But also there's this companionship layer and, you know, certainly, you know, the media tended to run with that, but we think there's a really strong use case here for our hardware and our software even as a standalone to combat what I would say is an epidemic and loneliness, you know, specifically around adolescents and senior citizens or people who are just geographically isolated. And so, we also think that there's a good use case there for what we're doing. And so, you know, internally, we have separate meetings on the hardware side, on the software side, you know, we've now created a new meeting for, you know, the development of our vision system. There's a few buckets there that we're playing in, but I think for us it's important because we're trying to deliver that ultimate vision of a humanoid robot that is highly realistic and compatible with various types of AI for different purposes. To your second question with respect to the accounting, look, it's a complicated question. I understand the challenges that auditors would have, but if you look at our balance sheet, We have a lot of patents around the skin, different things. Coming out of CES, we had some of the largest companies in the world who were there approach us and tell us that they thought our technology was amongst the top three things that they saw at the entire conference, and that's thousands of attendees. And so in looking at our balance sheet, do I think the value of our technology and what we're doing and building, you know, this is a company, we've got 4 billion media impressions around the world. Do I think that the value of our technology outside of our cash and our crypto is like, I don't know, whatever it's valued at a million bucks. No, I think it's worth hundreds of millions of dollars. And that's obviously hard to pick up. You know, as part of this last audit, we were, uh, you know, told to write down a bunch of intangibles and things where some of that value is carried. And as a result, we had to take a fairly large non-cash write-down on the value of those items. And so, whereas in my opinion, and I know accounting doesn't need or is not supposed to necessarily reflect reality, but whereas in my mind, I think the value of our IP, our technology, and the things we're building are in excess of what they were listed at, we actually had to take a write-down on those. You know, when I look at our balance sheet, we're essentially carried at the cash and crypto value and very little else. I think the company's worth a lot more.

Yeah.

Great. Thank you.

The next question is going to come from Thomas. Go ahead, Thomas.

Hi. Can you hear me? Yes. Hi, Andrew. So you said that you're getting the most traction amongst corporate customers right now. And I guess that makes sense considering the price point. So I'm wondering, do you guys intend on focusing your research and development to increase the ways that the robots can be adapted for use by businesses? And at what point as you scale up and what price point do you think you try to enter the consumer market as opposed to the business?

Right. So we're not opposed to the consumer market, but you're right, it's a high price point. And if you look through, you know, history of technology, generally new technology goes to people that can afford it. So, you know, rich people or corporations that have the money to do it, and then over time, the price comes down. So today, currently, you know, we're working on, you know, perfecting the technology, not necessarily trying to bring the price down. As we perfect the You know, and when I talk about perfecting the technology, it means that, you know, can we switch things a little bit different to make it more efficient? Can we use different things to make the movements more smoothly? Can we make the lip sync better? So as we have technology that's available for sale right now, but we're continuing to sort of perfect it, we're less focused on the cost and wanting instead to deliver the best possible product for the best sort of, you know, customer interaction. As we get that going and we start to look to scale the business There's things that we're looking at that will bring the cost down and make it more for home use. But again, if you're just thinking about home use, our AI-powered Bust product starts at around $10,000. While that's certainly expensive, if somebody really wanted to have it, it's not, you know, prohibitive. You know, a full-bodied robot costs a lot of money today. There's a lot of motors and different technologies that go in there, and the cost in building those today, you're not going to get the same price point. But, you know, I would hope that in, you know, three or four years, we're talking about a much lower price point. I'd say, you know, probably more in that $50,000 to $70,000 range for a full-size robot and probably, you know, a couple thousand dollars for a robotic bust. Great. Thank you.

The next question is from Adam. Go ahead, Adam.

Do you hear me? Yes. Perfect. Okay.

So I have like a three-part question. My first question is – Let me get my pad out so I can write it down.

Please, because I wrote down the question. Okay. So my first question is, I mean, it sounds like you're going down a very lucrative road, but it sounds like it could be a long one. But I want to let you know I'm backing you guys a million percent. I have a lot of shares in this company. I've had it for a long time since you were in the crypto days of token and this and that. So my first question is this. If the stock starts to fall, I'm only going to talk about share value. I'm not going to talk about the robots and the AI because that's a totally different field. But my first question is, if the stock starts to fall to like 5, 6, 8, 10, 15, 20 cents, will you guys continue to back it and support it like you were doing five, six weeks ago with your share buyback? That's my first question.

So let me clarify. We actually haven't done a share buyback yet. And let me explain why. there's actually regulations around that. And because we were in possession of material non-public information, meaning our financial statements, which we started on in when this was announced, we weren't permitted legally to buy back shares. So the subsequent question is, yes, we have put money aside to support the stock. The intention is for us to buy shares, but it just really depends on what's going on. Like, The philosophy that I have around this is that we want to support the stock in meaningful ways. So on the day, for example, like yesterday or Monday, I think it was when, because of the deep seek information, everybody lost their minds and decided that they were going to sell off the marketing, you know, and video loss, like, I don't know, $500 billion or something in one day. To me, that's not a good day to be using our share buyback because there's a high likelihood it's going to bounce back the next day. The way I kind of view it is in order to build shareholder value is if we see that the stock is languishing and trading down, I think we would step in and try to do something over the course of like a two or three week period where we're constantly buying a certain amount of shares every day to provide support in a period of time where the market or the stock should be preparing better. But I think jumping in on like, you know, bad shitty days like we had it Monday. It's like trying to catch a falling knife. It's not a good use of capital because, you know, some days are just going to be bad days in the market.

Got it. Okay. My next question is, you said that you also are going to apply to get to be traded on the NASDAQ, correct? Correct.

we're evaluating methods to do that. So let's talk about that for a sec.

While you're talking, let me just add two questions in there just to understand something. Because you're traded on the Canadian exchange, XBOT.V, and then you're also traded on the XBOT.F1, which is the U.S. So first of all, My first question is, would you have to do a reverse split to get there, A? And B, also, the U.S. exchange is getting 10% of the volume. Why do you think that is?

Okay, so let's talk about that for a second. So the OTC market in the U.S., it's actually, I think, technically not like a full exchange. Like I don't think it classifies as an exchange if you look into it, but it's sort of a trade-in clearing for U.S. buyers. And so the problem that we're seeing is, especially after CES – is that there's a tremendous amount of buying interest in our stock. And, you know, Jennifer can attest to the number of messages that we get from people because, you know, Robinhood doesn't let you buy OTC stocks. Several places don't let you do that. And so as a way of allowing more of an ease for people to do that, I think it's incumbent upon us to look at listing, you know, the NASDAQ's a great exchange. What it does for you is it makes it easier for people to buy you. You can be included into various Indexes like maybe a robotics index or an AI index makes it easier to raise capital down the road. But that comes with some other considerations. So, for example, directors and officers insurance for a company list on the NASDAQ is expensive. Last time I checked, it's about a million bucks a year. There's additional accounting staff that you got to put in place. There's additional regulatory issues. And so, to me, going to list on the NASDAQ, has the downsides that it probably is going to add about a million and a half dollars a year in an incremental overhead and work. And I guess the other piece of it is that we'd have to look at doing consolidation because you can't list on the NASDAQ as a 30 cent stock. There are various tiers there. But look, ultimately, my hope is that we start trading up to a much higher value and then we don't have to consolidate our stock. We're trading at a much higher price that qualifies us to trade on the NASDAQ as we are.

Okay. I do want to respond about the Robinhood comment though. Robinhood traders, the way I see them, are gay traders. I'm just saying there's so many more broker terms you could trade with this and that. So the guys who are on Robinhood who can't trade your stock, you might be a little bit lucky there because those are the guys who want to trade it and make a quick profit. I don't think those guys are holders.

Yeah, possibly. But, you know, ultimately we want to make our stock easier for U.S. buyers to purchase. But, you know, you may have similar restrictions at Wells Fargo or J.P. Morgan or Goldman Sachs. I don't know. But, you know, ultimately what we're trying to do is to be somebody, you know, we've got messages from people who want to buy the stock and they're unable to. So we want to find a way to correct that, and we think that being on a, what I would call a superior exchange in the United States would help us from a valuation perspective and able to attract a wider reach of investors.

Got it. Okay, great. And I wish you guys the best of luck, by the way, because I am following this day to day. As Jennifer would know, because I sent her lots of emails.

Oh, I'm aware. I respond to them, so. Okay.

All right, cool. Thank you.

You're welcome.

The next question is going to be from Kevin.

Yes, good afternoon. First off, I want to say I think it's an impressive product that could revolutionize what you're trying to do in the loneliness sector. I've got a few different questions. My first one is relating to forecasting and what have you. Obviously, Andrew is CEO. All of us that have been CEOs, we understand that in order to get P, we have to have E. And so I'm interested in your forecast. I didn't hear along the way that there's a forecast about what you're thinking in the next four quarters as far as an overall revenue forecast as well as anything pertaining to cash flow, whether you're going to be discussing EBITDA, net income, or whatever. And I have a couple of follow-on questions to that.

Sure. So as a general rule, we don't provide guidance. And it's a really dangerous thing to do so for a company our size. What I would say is our expectations are that this year is going to be significantly better than last year. I think in looking at our Q1 numbers, they are, just for Q1, almost entirely on their own, as good as last year was. Is this some kind of an indication? So we're, you know, that's three weeks away from release. In terms of, you know, the market, you know, Kevin, it's an interesting question. And Matt and I talk about this all the time. We do have internal forecasts. We have sort of a base case, a mid case, and a high case. But we're in a brand new market. It's not like we can point to, you know, what the other robot guy is selling and say, you know, we can layer on top of that. We're building a new market. It's a new use cases. And we continue to think that the market, you know, post CES, we came back and we think that the market was bigger than we anticipated. And so it's a little bit of a race right now. And I think we have a head start because our product is so different than everyone else's in the robotics and AI space. And so we're trying to sort of You know, Matt and I were talking earlier that, you know, Monday to Friday we don't have time to eat because we're literally, you know, from the entire day just busy working. And so I think putting out estimates and guidance is dangerous for a company like ours because the reality is that we're in this new space. We don't know where it's going. We think it's going to be, you know, a massive market. And, you know, the only thing I would say is that I can promise is that, you know, this year is going to be better than last year.

Yeah, I think for you, you've got an amazing technology of realism that you're a differentiator between the other robotics companies. The fact you look humanoid, I can see your vision, and I'm impressed with it. The thing is, how are you selling and what have you? I know, like, for myself as a global CEO – I would be having my regional district country managers or whatever rolling forecast. Now, I know you're not global like that, that you have a million people with your overhead being a small company doing $1 million, $1.3 million in the last quarter. But, you know, I guess the follow-on to that would be what is your selling model? Do you have like sales folks that are selling this or is it just whoever calls you? Is it your retail operations? I mean, the biggest thing it comes down to is the market is going to start paying attention to, A, you have an amazing product out there that is just earth-shattering, but, B, showing the numbers to make Wall Street or investors believe it that they want to buy more stocks, which increases shareholder value for all of us that are owning shares in your company. And I'll have two more questions after that that follow this.

Sure. The answer is that we're developing this. So, to build, and it sounds like you're a CEO of a company that's got, you know, various layers of salespeople. Currently, we're doing it ourselves. And so, you know, believe it or not, you know, Matt and I and some of the other internal management team, we're responding to these, like, you know, all these inquiries directly ourselves. Like, we spend time jumping on calls with people. know having people tour the facilities um putting together you know we we're putting out quotations for products on a daily basis and we're evaluating better ways to do that right and it's it's a bit of a it's not an easy product to sell because there is so much customizability like which ai do you want to operate do you want the the ai to run locally or on the cloud which type of voice do you want what do you want the face to look like like there's a there's some things here that need to be selected. And so what we're doing is we're trying to make it more efficient so that you can go to the website. We're going to be adding brochures there soon. I would say in the month of February where you'll be able to just click on the product and you'll get three, four pages that give you like the exact range of movements for each robot type. What type of voices? You know, we get questions like can the robot be outside in the rain? And so all of these types of questions will be answered per product, and then there's going to be an intake form, which we're currently using and modifying, where somebody will be able to sort of click a few things, add some comments, and then you'll get a quotation back very quickly. We're in the process of interviewing people for sales roles, people with experience, but really what we need is somebody who's, you know, innovative entrepreneurial to help us manage the sales, but also the customer service and how we make that point of contact with the potential buyer easier, efficient in order to get that sale done.

Yeah, that's the part where you're at in your entrepreneurial journey about getting that channel done.

Yeah, I mean, you got to remember this. We started when we did all this, the business we've only really, CES was the very first time we ever showed the products anywhere as the first conference. And we didn't know what to expect. We're obviously super happy that we got the reception that we did. But it's a little bit like drinking from a fire hose since then, because there has been so much interest from buyers, from investors. from other, you know, software providers, hardware providers. And so we're trying to manage the growth under the understanding that, Hey, we are still an early stage company, right? Like, you know, there's probably 20, 22 people at the company right now at all levels. We're growing. The intention is to turn this into a multi-billion dollar business, but that happens over time and takes work.

Absolutely. You're a, You had an impairment of $9.3 million, and after everything, taking out the NRE, you're at $442,000. So... Is there going to be a case on your investor website that we would see a comprehensive balance sheet that shows everything, Andrew? Will we see something like that? Yeah.

So we file the full financial statements on CDAR.ca. Martin, can you just jump on and direct Kevin as to where you can find all our filings? And then you'll see full audited financial statements.

Okay.

I don't want to take up your time because I would like... If you go to the .ai site, there should be an area there that will lead you to it. It's cedar.ca, I believe, S-E-D-A-R. Yeah. And we file, so management discussion and analysis, the annual information form, the financial statements, and the press releases, everything is there, and it actually goes back for years.

Yeah, it's cedarplus.ca, Kevin, and I can confirm that. All our filings are on there, you know, for FD&I.

Sure. The total digital assets in cash, 9.7 million, you're sitting on, is that after the impairment or before the impairment?

There's no impairment with regards to our cash.

I'm sorry? It's after?

There's no impairment on that one. Sorry, just the fair value of the cash and the crypto as of September 30th.

Okay. And then my last question, Andrew, I appreciate.

So it would be after, so all the impairments were non-cash, non-cash, non-value. They were just basically, we were carrying the value of the technology. Like, I'll give you an example. We own the domain name tokens.com. You know, we have that listed for sale at 6 million. We're receiving bids in, you know, the seven figure range for that. But, you know, from an auditing perspective, they make us carry that at zero. And so we had to write that down last year. There's other sort of things that we carry, like value of patents or things like that, that, you know, from an accounting standpoint, really hard for them to sort of verify what is the value of the technology. So they made us write all that stuff down to zero. So there's no cash involved or impairments to the assets. Really just they're saying, we will value you at your cash, your digital assets and inventory and very little else. And that's why the balance sheet is where it's at.

I'll take a further look once I can find it. If not, I'll call into your investor relations. My biggest concern of companies, whether it's you or anyone else, comes down to do you have enough with current burn rate? Do you have enough cash on hand? How many months of operation do you have cash on hand to achieve your vision?

I would say we easily have 12 months, probably more. So I anticipate this year we'll probably lose somewhere in the $3 million range. And that's just because we have to invest into things like marketing, you know, sales, like all the things we talked about in terms of growing the sales force. You know, looking at sort of where we're at, at those numbers, it's about 10 million bucks or so with cash, cash equivalents. Like I'm pretty sure here we could stretch this out for 24 months if we needed to. And really, you know, you know, we haven't raised capital in the business for many years. And I think the thought process is let's make sure we sequence things properly. Let's do things quickly. The fastest way in my mind to blow up a company is to try and focus into too many areas, hire too many people. And then all of a sudden you run out of money. I don't want that to happen here. And so we evaluate everything very carefully. We're conservative with how we spend. And so I believe we're well capitalized here for at least another 12 months.

Excellent. My final question pertains to, obviously, this came out of the thought process and innovations at RealDolls. Can you share with me, is RealDolls now totally separated from Realbotics? Because one has, you know, with the vision you have for Realbotics has certain connotations and RealDolls has a different connotation that's going to impact investor sentiment. So if you can kind of, is RealDolls still, I couldn't necessarily, following all your documents or whatever, and looking at all those different websites, I couldn't ascertain whether they're still connected, disconnected, are they going to relate? Can you comment on that?

So, yes. So... A lot of the technology and why the robots look so real does come from that business. That's really, you know, where today is an evolution of that business. The way it stands today is the companies are separate. There's separate accounting, separate banking, separate staff within those businesses. But there's some ways that we leverage, you know, technology, like mostly them potentially leveraging technology from robotics. We still own, I believe it's about 85% of that business and we're evaluating how to integrate that. But for sure in building the business where we see the future of the company is more on the real botics side. And, you know, we recognize the need to keep those businesses separate because we're dealing with a very different client base.

So you still own, you're saying, 85% of real dolls. Yeah. And is that baked into out of this revenue number that you just shared? How much of that comes out of that 1.3 million? How much of that comes from real dolls and how much of it comes from robotics?

It's broken out, but I would say that it's probably about a 50-50. Again, keeping in mind, robotics, this is a new business that's being built. We've just started marketing and those financial statements date back to September 2024. And so I think you have to just keep in mind that The Realbotics business, the value today lies in the technology. It lies in the patents. It lies in sort of the future of what we're building there. And so part of what I'm trying to communicate through this is that I think the statements that were released yesterday don't fully necessarily reflect where the business is going. It's sort of looking backwards through what I would call very draconian accounting eyes.

Well, I appreciate your candor. I'm impressed with your technology. I think you have sized up your market that there's a huge opportunity here. And someone who, many years ago, took care of a my terminally ill mom in a nursing home watching people being lonely and what have you. I think you're dead on about providing that kind of companionship to those kind of folks. And I wish you the best of luck. Post-call, I probably will try and reach out to you, Andrew, and talk more about this company with you.

That'd be great. Thank you, Kevin, for your questions. Thank you.

The next question is from Donovan. Go ahead, Donovan.

Hi. Good morning, Andrew. Thank you for the call. Three different areas, and you've touched on a couple of them already, so I'll continue that way. First off, I look forward to retiring a millionaire on your company. I absolutely love it.

Me too.

I started investing last early fall. I doubled my investment when you had talked about doing the share buyback. I was kind of disappointed that it didn't come because I was looking forward to going up, but I heard you speak about that earlier, and I understand your reasonings there, and we'll just wait on the future. My other two comments, I was also wondering about RealDoll and then 85% holding. For a moment, I just want to touch there, and then I'll return later. Looking at the competition in, say, China or something, you have just on the body 8,000 to 2,000 or the AI market. $12,000 to $4,000. And certainly no quality comparison. I'm not looking at that. I'm just looking at price for the market. Leave that for a moment. Now go to robotics. I love what I see there as well. I agree with the who and the loneliness and the nursing homes. I have a fairly large insurance agency. 90% of my business is in Medicare. I deal with nursing homes all the time. I do see the loneliness there as well. But I don't see it all there yet. I would love to see a case study. Can you get a doll? I mean, it's easy for me to say, hey, why don't you just drop a $175,000 doll and see what it does? I understand how ludicrous that sounds, but it would be nice to show the world exactly what this doll can do in real life and get other people. I've even thought about, man, do I buy it and just rent it out to the nursing homes myself? Where are we at as far as that being a possibility? If you have a real-world scenario where the press, investors, and other nursing homes can see, look what it did here. Look how good it is. We're not just talking about it. Here's a real-life study that opens up the sale. So I'm not looking at your investment so much as your sales. I do think you should have a professional sales team as well. But if you had that real-life scenario – Even if nursing homes couldn't buy it, you're going to see families, wow, I saw that doll there. I want to get one for my own father, for my own mother. But I can't afford $175. I hear they do have a real doll that's only $12. Now, all of a sudden, you've opened up a whole new market for real doll. And, of course, it doesn't have to have the bad intonation on there from what some people might think of it. But I think by having a real case world, you might open it up. both sales avenues. That's my comment.

Yeah, no, I think that's a good comment, Donovan. And, you know, we talk and think about this stuff on a daily basis in terms of where we want the business to go and the different assets. And, you know, when it comes to RealDoll, we're doing a website revamp. We're going to do sort of a bit of a repositioning of that And I think the areas that we are sort of talking about are more the direction that we want to go, and that is more about sort of what I would call, you know, wellness and health care. You know, we think that there is a product there that can be, you know, suited to that process, and we're trying to sort of, again, thinking about it from a marketing standpoint of how do we go and get that product looked at more and onto sort of wellness podcasts. and senior citizens homes and areas like that. And there's certainly the ability to combine that. I think, again, it's just a function of I want, you know, I wish we had, you know, if I had $100 million in the bank and we could just go out and hire a bunch of people and do everything, we would. But at this point, I think we sort of want to pick a couple of lanes to go down in terms of where we think we can get the most immediate value for shareholders. And, yeah, that's certainly something there. And, like I said, we're looking to sort of reposition that business to sort of a higher tier than what it's been sort of classified in the past. So hope that answers the question.

It does. I just look forward to seeing a case study of the 175 ARIA or anything else like that to show the world and get people excited about here's a real-world example, not I'm on display. The display is fantastic. I'd love to see it in the real world if you could get someone to allow cameras into their business.

Yeah, we're working on it. We're working on it.

Thank you. I appreciate it.

Thanks, Donovan. Next we have Michael.

Hi, Andrew. Can you hear me okay? Yes. So following up first, let me just say, love what you're doing. Liked where the company was before as well, but I get that the times just weren't quite jiving. And so I had a couple of questions kind of regarding some of the divestitures of things like Metaverse and Hulk Labs back early last year, specifically as it pertains to some of the crypto holdings as holdover assets, surpassing that divestiture to Storyfire. I'm wondering as you start you know, commenting about go-forward runway for the company, et cetera, and those of us that are shareholders certainly wanting to avoid unnecessary dilution. I'm wondering if you see a future intersection between some of these crypto holdings and where things are going with robotics, or if at some point these things are going to be looked to for liquidation, maybe once the accounting and the numbers are a little bit more favorable, or whether you would be looking to debt instead of go-forward dilutive measures to raise the capital you need to move forward. Any thoughts you can share along those lines?

Yeah, let's take a step back. And so if you go back to tokens 2021, I think we made a great call and a horrible call. And so we got into the metaverse stuff before Facebook did. And then when they converted their name to meta, our share price skyrocketed. We were a half a billion dollar company almost. And that was great. And then in 2022, the wheels came off the bus and continued into 2023 for us, where we were a company that was sitting on some crypto, but we really were not getting any love from the market. And we needed to make the choice as to what we were going to do. The metaverse business at the time was employing a lot of people, and it was a large overhead. And essentially the move that we did there was to say, okay, we don't want to give up exposure to this business and just shut it down, but why don't we sell it? We sold it to Storyfire in exchange for equity. And what that does is, number one, we remove the overhead, but number two, it continues to provide us exposure to that area if it resurfaces in some way. And removing that overhead, really then the company became, you know, me, Martin, and Jennifer, and Eric, those, you know, And we had the cash and the crypto and we were looking for something to do to create value for shareholders. And we wanted to say, okay, I think people in the business were used to us sort of playing in the VR space with the metaverse. Why don't we take it to reality where we're actually dealing with robots and AI? I was fortunate enough to meet Matt. Matt and I hit it off. We talked about this for a long time before we did this deal. As a company, we actually looked at another 12, 13 deals, and we thought this was sort of the best thing we could do for shareholders. And I still continue to believe that. So in terms of where we are today, we continue, and I think I said in the press release, as we need capital, we're selling the Ethereum here and there. When we see the highs hit, we're going to be opportunistic. But I think as the company moves forward, we want to be seen less as a crypto company and more or even a metaverse company, although we have some exposure there. And we want to be perceived more as a robotics AI company.

I certainly appreciate the, I figured as much. I just was kind of curious what the thought was with some of the crypto. I didn't know if it was, you know, intentionally held back from the deal, the story fire. or if they weren't interested in those assets at the time. I wasn't going to give them any of the crypto.

Well, that's where I was going with it, trying to kind of figure out. Yeah, no, no. What I was really trying to do there was get rid of the overhead. I didn't want to fire 20 people. And so what I did is I found a home for them and in the process also got us exposure in the event that that business resurfaces and comes back to life.

Good deal. Well, thank you for the answer. I love what you're doing and look forward to seeing you continue to do well. Thank you. Thank you.

Thanks, Michael. Next question is from David.

Hello, Andrew. Do you hear me? Yes. Hi, David. Hello. I'm from Germany, and I have a few questions. So the first one is an easy question. Are you an American company or Canadian?

We're registered in Canada. That's where sort of the genesis and the roots of the business are. But we, you know, our largest trading exchange is in Canada on the Toronto Stock Exchange, the Toronto Venture Stock Exchange here, which is a large exchange in North America. I would say that our shareholder base is probably 50-50 Canadian and U.S. Okay, thanks. I'm sorry, I'll add to that. The manufacturing, so while sort of the corporate headquarters is here in Canada, the manufacturing and really the heart and soul of a lot of what happens at the business is done just outside Las Vegas in Nevada.

Okay, so the production is in Nevada, the headquarters in Canada. Correct. Okay. Are there any negotiations about possible cooperation with top companies, for example, big investors who want to get in because the success was very successful, therefore I'm asking.

Yeah, you know, we've started having conversations with a lot of different players. There's nothing I can reveal right now. I don't know what will come to fruition, if anything at all. But certainly we caught the attention of, you know, the largest software and hardware technology companies at CES.

Okay. Are you considering changing your crypto to create additional activity? For example, changing to Ripple? Yeah.

So we talked at the board level about whether we should convert everything to Bitcoin or Solana. The issue is this, and we got to think about it carefully. There's an expense to converting it. You know, it's kind of, and it's almost a little more expensive, but if we were to change everything you know, three or four million dollars of crypto from one to another, there's going to be a friction cost there probably of about $100,000 of lost crypto just in the exchange and of getting something like that done. And so ultimately, we want to think like, you know, does the rising tide lift all crypto? Like, you know, what we've seen since last you know, since really this all started when Trump got elected in the United States, we've seen sort of a resurgence in crypto based on, you know, having a pro crypto president in the US and everything has gone up. Some things have gone more than others, but I don't want to turn the company into a speculation house for various crypto. What I would really prefer is that we sit here, we manage the, it's primarily Ethereum. It's the second largest cryptocurrency in the world It's been around for a long time. It's, you know, as blue chip in crypto as you can get other than Bitcoin. We've thought about it. For now, I think the thought process is let's just hold what we have. But, you know, again, I don't want to turn the company into a crypto speculation company.

Okay. Are you considering just selling your silicon skin and supplying big robots manufacturers, for example? Because the production is sometimes more complex just to supply the silicon skin to, for example, Tesla and so on. So just supplying the silicon skin.

Yeah, you know, I had a conversation this morning with actually someone from Germany, and we were talking about exactly that, which is, You know, I think we have, again, something that's not valued very much on our balance sheet, but I think we have the most realistic synthetic skin in the world. And we've been contacted by doctors who have said, hey, can we look into using this as a skin substitute? You know, we've made prosthetics before for people. And, you know, could we license out our skin technology to another robotics company? Because eventually they're going to want to put skin on it or something that makes them look real. So the answer is yes. We are looking into that. But it's just a function of, you know, there's only so many hours in the day for management to sort of look at stuff. And so that's on the list of things to do this year. And as we continue to build and grow the company, we'll dedicate more time to it.

Okay. Yeah. So the next question is, can you rule out share dilution this year in the context of the acquisition of Simulacra? the company which you hand over.

Can you repeat the question?

Can you rule out the share dilution this year in the context of acquisition of the company?

Yeah. Yeah, I don't think that that additional dilution is going to happen, no. Okay, this year not okay.

So that's it. Thank you very much.

You're welcome.

Thanks, David. Now the next question is from Adam.

Do you hear me? Yes. Hello? Okay, perfect. Okay. So I want to get back to the business aspect because before we talk more like share value and this and that. So buying these robots are pretty expensive, $150,000, $160,000, and some people may be able to use it but not realize that they can actually afford it. So have you given thought to leasing out these robots where they'll get – a lower price on a monthly basis and also getting the robot updated if it needed to be updated? That's the first question.

So the answer is yes. I think that what we prefer is maybe more of a rental plan. Like the problems with leasing is, you know, while I wouldn't say the robots are like fragile, like what happens if somebody, you know, There's always a robot over a ledge or something and then says, great, it's broken. I'm not going to pay you for it. Like, I think those are things we would look at as the company becomes more established. But for today, the plan is you pay 50% up front and then 50% on delivery. And we're comfortable with that. And we're exploring rentals. So, for example, there's universities that want to potentially rent robots to test their AI on. And as long as it was sort of in a well-supervised environment, we could look into that. We've also been... had the idea that, you know, a conference center should probably like buy 10 robots, and they should rent them out to exhibitors. And the proof of that was at CES because we had, you know, the CES staff were coming to us daily telling us we were creating a fire hazard because so many people were lined up to see our booth. And people were stepping into other people's booths to get a site and look into our booth. And so clearly, it elevates traffic and crowds gather when you have a robot. Convention centers should buy 10 of these things and rent them out for $10,000 a day to the people who are presenting.

Great idea, actually. Okay, my next question. That's a great idea, by the way. Next question would be, if we go back in time and not too far back, I believe you guys had like $15 million in Ethereum, if I'm not mistaken. I could be wrong, but what happened to all of it?

So I have to go back and look at the specific numbers. I think the easier thing to do is look at the number of Ethereum as opposed to its value because the value changes. Yeah, but it moved up considerably over the last couple of years, has it not? Well, the price of Ethereum has moved up considerably, but there's some level of volatility. But also, like, you know, I put in the press release, like we've sold, I got to go back, but I think we've sold like 250 Ethereum in the last, two, three months. So we're gradually that's our working capital, right. And so whereas other companies might keep their cash in fiat, we have fiat money, but as we need to sort of, you know, continue to keep our cash balance going, we will sell off some of our crypto in order to maintain cash balances that we need to interact in the normal world.

Okay. And if you if you wanted to get more money, quickly, would you consider doing like a private placement?

Not at these prices. Look, maybe I'm eternally optimistic and that's, you know, positive or negative is my role in the CEO, but I think we're incredibly undervalued here still. And, you know, I was, again, I was talking to a guy this morning who was a former guy in the robotics space. And he said, he looks at our market cap. He says, I think you guys are worth $500 million. And so, you know, I don't know why we would need to, I would want to raise capital at these prices. Like we can continue to use the crypto gradually and sequentially over time to meet our needs. I think if the share price was to go up, we would certainly contemplate raising capital. But at this point, I think if we have sufficient capital, we feel well capitalized. I don't know why we want to do something highly dilutive here, but, you know, don't hold me to that. You know, it's, things change on a day-to-day basis and so does the share price and so does the price of Ethereum. And so, you know, we're trying to balance all these things, you know, the best we can.

Okay. And then one last comment, I just want to say, like, I mean, I don't want to sound negative, but I'm like, I always find, I trade a lot of stocks and I buy a lot of companies and stuff and I, and I, and I look for the value, but I always find that the value, the value finds itself eventually, you know, and I, and I, and I think the only way that you're going to find the value is by, showing revenues and sales. That's pretty much the only way you're going to do it. I've told people about this company. One of my very good customers called me and said, I just came back from CES. I'm like, did you see my robot company? He's like, holy shit, yes, I did. People were taking pictures and they were standing in line and pushing people around. I'm like, yeah, I invested in that. I got him to make a nice investment in that company. I believe it. He bought a lot of shares in that day that he called me and I think the stock had gone up to like 70 cents or 72 or something a couple days later. It's fallen now because you're probably like getting off the CES buzz. But I mean, the sales will come eventually if you work on them and the value will absolutely find itself. It always does.

Yeah, we agree. And look, there's a lot of things that go into the share price And that is things that are out of our control, like they're short sellers. And I actually think there was maybe some shorting that was happening there. I did contact the exchange and the regulators and I did say, hey, I'm not sure, but can you look into it? We appreciated by about 500% in a week. And so, of course, there's going to be a little bit of steam that's going to be let out there. We're still optimistic. And like I said, I try to look at things you know, quarter to quarter, year to year, as opposed to day to day. Because if you look at things day to day, you don't just drive yourself crazy trying to, you know, who's selling this, who's doing that. But, you know, I want to focus more on building the value. Like you said, we want to get sales, we want to get orders and, you know, have good news. That's what will eventually drive the share price higher. Absolutely. Okay, great. Good luck with that. Thanks. Jennifer, maybe just one last question, if that's okay, as we're coming up on two o'clock.

No problem. So we have Thomas.

Hi, Thomas.

Hey, Andrew. Thomas Sullivan. I've known you since just before you started Tokens and have been following the company ever since then. Hey, Thomas. I'm sure you remember. Oh, hi. Can you hear me?

Yes.

Hi. I'm sure you remember back at the time I was a big supporter of the investment in the Metaverse Group. Unfortunately, that waved in. crest as we thought it would back then. And I think the deal you did to digest from the metaverse group, but maintain exposure to that space was a great deal for the company. And going back to your roots at tokens.com, being the first publicly traded crypto staking company, I was wondering, are you still staking the crypto holdings that you have? And are you using that income to fund operations or are they not being staked right now?

Yeah, the ETH, I think we put out, I think 60% of the ETH is still staked and then 40% is unstaked. And so that allows us the flexibility to sell. Like if we need to sell crypto, it takes us under a minute. And if we wanted to do more, we can just unstake it. And so we're sort of doing, but we're not using it to fund operations because when you're staking, you just receive more Ethereum. So it just builds on the balance. Okay. And we would unstake it and then it's available for us to sell it. If we, if we wanted to supplement our working capital.

Awesome. Thanks Andrew.

All right. Well, look, thanks everybody for listening to me talk here for the last hour. I'm certainly tired of listening to myself. Um, if anybody has any further questions, you know, please via the website, you know, real botics or contact at real botics.com. Um, we do try to get back to everybody in a quick timeframe and, uh, Thanks, everybody. Thanks for being patient with us. And we'll talk to you again in about three weeks with Q1.