Gorilla Technology Group Inc. Price & Performance (GRRR)

I would now like to turn the conference over to Jay Chandan, Chairman and Chief Executive Officer Bruce Bauer, Interim Chief Financial Officer and Doctor. Raj Natrajan, Chief Technology Officer. Please go ahead. Thank you very much. [indiscernible] First of all, before I begin, I would like to thank our incredible community of institutional retail You've all been standing by me and this incredible business we've built through every single high and every single low. Believe it's not only in due, but it has also fueled everything we have. And we will build. So thank you. I would like to quickly give you an update as to where we are with Gorilla Technology as a company today. But more importantly talk to you about how we have evolved as a business starting from 2022 all the way up until 2024 going into 2025. In 2022, we were largely a regional player. We have limited global reach and over complicated capital structure and a business that was technically promising. But commercially constrained as well at the same time. Fast forward today what you're seeing is a radically transformed organization built for scale sustainability and dominance in some of the fastest growing markets on the planet.

Now in 2023, we began our shift. We doubled down on our global expansion. We cleaned up the business rebuilt the leadership team stabilized our operations and began unlocking national level opportunities. Now our revenue as you all know jumped by about 189% to about $64,700,000 but we also turned a prior year with net loss of $87,000,000 into meaningful net profit. But 2024 is when the engine truly fired. We delivered about $74,000,000 plus in revenue exceeding guidance and reinforcing the strength of our global sales execution. Our net income excluding one off non cash items surged to about $21,000,000 plus and that's surpassing guidance by two fifty three plus percent That was purely driven by disciplined cost control and sharp operational focus. Our adjusted EBITDA reached about $20 plus million, outperforming estimates by a little over 70 plus percent and that shows operational efficiency and a scalable business model. But more importantly, if you look at our operating income, excluding exceptional items, we climbed to a little over $19,000,000 that exceeded the guidance by well over 40%, highlighting also robust performance across the business. But what was also very notable to learn which I'm sure the market has already realized is that we beat market expectations on adjusted EPS by a little over 470% reflecting our strong underlying profitability of the business.

Now these are not just paper gains. These are hard earned results delivering wide health security across five different continents securing sovereign level infrastructure projects and scaling long term recurring revenue streams. And yet here is the question we keep hearing. Especially from skeptics and others nay sayers, if I may. How is Gorilla signing multibillion dollar deals? How are we building a $6,000,000,000 pipeline? Is that even real? These are questions I've been faced on daily basis. Now let me be clear, we're not out there cold pitching. These are inbound opportunities that are coming to us because the market is finally catching up to what we have built. Whether it's governments, strategic funds, global partners, they're seeking out to lead their national national digital transformation programs and they're seeking us. When you deliver on the ground like what we've done in Taiwan, Thailand, Latin America, United Kingdom, we're troubles. When you're recognized by someone like Global Edge Fund as the exclusive AI and digital infrastructure [indiscernible] Doors open. When a major platform such as One Amazon selects Gorilla AI stack to support their mission critical operations to create a tokenized nature capital you do not have to convince anyone that we're real.

The work speaks for itself. So yes, we have nearly 2,000,000,000 plus in signed contracts or contracts one to date. These are not theoretical. They are structured commercial agreements with detailed scope faced delivery schedules and monetization milestone and the remaining $4,600,000,000 pipeline, it's not plus. It includes late stage contracts formal MOUs transitioning into final terms and more importantly government backed frameworks with long term commercial scope. Now I want to address a very, very common misunderstanding. Just because an MOU is signed or even a contract is secure, it does not mean the revenue falls from the tree the next day. This is not a plug and play. We're not selling prepackaged software over the checkout counter and we're definitely not selling taco trucks. What we are doing is far more ambitious and we are far more complex. Before the first dollar is earned, I need to educate everybody as to how this goes by. We need to do we must, first of all, understand the client's national priorities, map the real world complexity of legacy infrastructure scope and architect future state environments, become what we call build trust as a strategic partner not just as a transactional vendor engage in solution design proof of concept validation, architecture planning, compliance alignment, finally most importantly, we have to work with multiple global partners often under sovereign level scrutiny.

Only then do we move into delivery, and delivery at a national scale takes time. Why? Because when you're digitizing an energy grid, or reimagining national cybersecurity infrastructure or building the smart ecosystem across thousands of institutions, speed without structure is failure. So when I say we are signing long term deals, it's not to impress the market today. It is to build a five ten, fifteen, twenty, a thirty year revenue base so that when Bruce, Raj and I can stand in front of the market our investors and analysts will say with conviction we know what we're delivering we know where the revenue is coming from, and more importantly, we're building something that lost. Now, is not just a business growth we're talking about, this is category leadership. And finally, before I hand it over, let me say this, we're just getting started not just globally but also in The United States. We're expanding very rapidly and this not just about business development, but it's also about engineering policy engagement, and partnerships that will place Gorilla at the heart of the AI infrastructure narrative in The United States. Now this is not speculative tech height. This is infrastructure policy, AI and execution at scale.

But more importantly, as we now take you through our business strategy, technology roadmap and financials, I ask you to look beyond the noise. See, Gorilla for what it is. It's a company with a proven model, real profitability global reach and a pipeline that is not built on height but built on delivery, trust and unmatched execution capability. So here are a few things I want to leave you with. We're not here to compete for space. But we're here to define. Define that particular space or define it as if I may say it, We're not just following a category, but we're trying to build one but more importantly, the market is just beginning to realize that. Now I will hand it over to Bruce And Bruce, do you want to take them through the numbers behind that momentum? Thank you. Yes, sure. Thank you, Jay. Thank you, everyone.

So the first thing before I dive in is I want to say that we've shared today the breached financials There'll be a 20 F filing which is our year end full financial filing that will be coming up in a matter of a week or two. So stay on the lookout for that. That will have all the details behind this. So to reiterate just the key numbers, I'll walk through the income statement and and go through those. First is the revenue as we mentioned delivered 74,670,000.00 [indiscernible] quite thrilled with this as it's a 15% increase over last year. This is really due to performance from some of the large contracts that we had announced earlier, so 2023. And And also some onboarding of new clients or new contracts from repeat clients? The gross profit was 49.96%, This was a decline from last year due to a change in the mix What we saw was basically in 2023 a very high margin focus on services on high margin services And we think that that was basically a one off. Going forward we expect the gross margin to stay around this level. So 45% to low 50% range.

We think that this is the margins that the business is able to generate at scale going forward. As we scroll down to the cost items, you can see that basically the SG and A and the R and D spend were down last in 2024. That reflects a rightsizing of the business some structured layoffs that we took in 2023 and 2024. Really to get the business down to cut some of the fat and get some muscle mass.

We're starting to hire again.

And to rebuild in some key areas especially with the senior team. So in the second half of this of last year and then in the beginning of this year, we have been building up in the finance team, technology team operations. Also on the cost side, we saw a foreign exchange loss of about $27,500,000 that is primarily due to the impact of the one off devaluation that we saw in Egypt in March of twenty twenty four. Now this is a provision that we've taken to be sort of max conservative. There is the potential for a reversal or a decrease in the provision as first of all the exchange rate could settle down or reverse And secondly, as there is the potential for compensation from clients for exchange rate some of the exchange rate losses. So for now, we have booked the maximum provision. And we await further developments. The other big impact here, as we mentioned at the bottom of the press release was in terms of the conversion of the preferred shares and the exercise of the warrants. So basically, this is this is a noncash loss of $59,540,000 I want to emphasize that this is on paper, right?

It has it doesn't change any of the operating results and it doesn't change any of the cash items. But it is a charge that we have to take because it reflects the difference between the prevailing share price and either the exercise price of the warrants or the conversion price of the of the preferred shares. So that is a charge that we took but also that is a charge that we won't take in the future because all of the preferred shares were converted into ordinary shares. And then almost all of the warrants were converted into ordinary shares last year. And then we have a very small amount of warrants to be that we hope will be converted this year. In terms of so that was a brief tour of profit and loss. Terms of the cash flow, so last year, we saw a significant outflow from operations. Of cash flow operations of 34,000,000 That was financed by basically raising money from the market in the first part of 2024. That build sorry, that decrease in cash flow was financed [indiscernible] due to a build in the contract assets I. E. Unbilled revenue This is basically because we perform work, and then as we perform work and recognize revenue we waited to bill it.

We believe that the unbilled revenue has peaked at the end of twenty twenty four. Because we're billing actively to our main customers [indiscernible] In terms of sending the invoices and moving it into the accounts receivable column. We also expect that this year will be cash flow positive from operations because of that. Right? The unbilled revenue won't expand dramatically. Sending bills to customers and collecting them.

Or awaiting collection in the next week or two. In terms of where we are with the balance sheet, the unrestricted cash balance is $21,700,000 at the end of the year. That is up from $5,300,000 at the end of 2023. That's obviously a dramatic improvement. That came partly from the reduction in the restricted cash balance. So restricted cash ended the year at $15,770,000 that was down from $41,470,000 That basically is because we had several guarantees to to clients where we delivered a certain milestone. We reached a certain milestone and we were able to unlock those guarantees and turn them from restricted cash into unrestricted cash. And some of that cash was put to work in either in some hardware prepayments or in in other uses for the business. Also part of that freeing up of cash part of that increase in cash was used to pay down debt. So we finished at 21,420,000.00 down from $25,090,000 of debt So that is improvements and we expect further improvement along those lines. So to come to the shareholder structure as of today, so I mentioned this earlier, but there are no preferred shares Those were all converted into ordinary shares.

In '20 in 2024. We have about 700,000 shares that can be issued due to private warrants private warrants with strike price of 5.9 And then we have the publicly traded warrants GRRW which about 958,000 potential shares. Also that means that we reduced the fully diluted share count from the middle of last year until now by about 750,000 shares So we've tried to be very keep a lid on dilution Coming to a couple of other points for 2024. So as I mentioned, we will announce the full financials. It will be a filing with the SEC. We expect to see improvements in the language about material weaknesses and internal controls.

Obviously, I don't want to front run the exact statement, but we have made a lot of progress in the year terms of internal controls, operations and [indiscernible] So we expect to see a much better statement about internal controls. We also expect to announce that we are Sarbanes Oxley And actually that's two years ahead of the requirement that the exchange has for us. Want to turn now to the guidance for 2025. So as we mentioned earlier in the year, the guidance is 100,000,000 to $110,000,000 of revenue. The gross margins are 40% to 50%. That's a wide range. It should be closer to the top end of the range than the bottom end of the range. And then we see 20% to 25% EBITDA margins and net margin of 10% to 18% Again, there's a wide range because of certain depends basically where we book the revenue for tax purposes. We have a lot of confidence in those predictions as well because the backlog at the moment is $93,000,000 So to expand on what Jay was talking about, backlog for us means revenue where the contract is signed it is either in the process of being delivered or it is booked to be delivered.

In 2025? So that $93,000,000 is what is just what's attributable to 2025. We also expect a ramp up in some of the projects that we have discussed before. For instance, our work with the Taitoris police, our work in Santa Marta, and some of the other smart cities in Latin America, which will take us beyond the backlog figure at $93,000,000 into our range of 100,000,000 to 110 So that's how we get there. It's I don't yet have the exact amounts and timing, for those but we know that those projects will generate revenue this year [indiscernible] together they will get us to the 100 to 110 guidance. We anticipate that I should say. Also, we anticipate cash flow operations to be positive, due to further reductions in restricted cash collections from customers and also because as of now we don't expect significant investment. Last but not least is talking about debt We own a property in Taipei which is on the market the plan is very much that we will repay our debt load with the proceeds from the sale of that property will also free up about $5,500,000 of cash that is restricted because it is pledged as collateral to against the loan.

And last but not least, I want to talk a little bit about 2026. So as Jay mentioned, a lot of the MOUs, contracts, etcetera, that we have announced to the market, have a revenue impact where we're still figuring out when exactly it starts. It's not press a button and it starts. It could take six months to start. It could take nine months. It could take twelve months. But nonetheless, we are confident that revenues will be in 2026 higher than our guidance of for 2025. We also have a backlog of $67,000,000 which is attributable just to 2026. So, is contracts that we already are working on. Where looking forward, we can see that we'll deliver this revenue in 2026. We also have funding for our current project portfolio Growing the business requires putting capital to work in different projects and to service contracts. [indiscernible] we get more contracts or the they become sooner dated I guess, would be the right way to say it. Then we will seek to utilize first our cash balance [indiscernible] [indiscernible] in the form of bank debt also project level finance And last, would be equity.

So if we had an amazing run of converting projects into signed contracts that would be operational this year. Then there's a chance we would raise equity. But of course, we would only do that if it was accretive for shareholders. By delivering EBITDA and revenue growth and to fund exciting projects. Otherwise, we'll stick with the current project portfolio. And then we will fund it with our own resources So that is all for me. With that, I'd like to turn it over to Jay and Suraj again.

Thank you, Bruce.

Hello, everyone. I'd like to take a moment to share a few thoughts from a technological development standpoint, so that it helps ground ourselves. At Gorilla, our journey has been very intentional from being a software company to purpose built appliances company and now on to delivering comprehensive solution based software.

Each evolution brought us closer to our customer deepening our understanding of their challenges and allowing us to control more of the value chain. Initially, we specialized in powerful AI software but software alone left our customers facing hardware incompatibilities integration headaches, infrastructure gaps and unpredictable performance.

Recognizing this, we shifted our approach. At the top of 2024, we transitioned into creating purpose built appliances. Pairing our AI with optimized hardware.

This gave our customers reliable performance enhanced security, and faster realization of value.

Yet, we knew our customers needed even more.

Today, we deliver complete outcome focused solutions fully integrated systems designed to solve end to end challenges, not just isolated components. The One Amazon project illustrates this perfectly. We didn't simply go in offering AI software or standalone appliances.

Instead, we are designing and deploying an integrated solution combining infrastructure, video analytics secure communications, all seamlessly embedded within the Amazon's ecosystem. Ecosystem. This holistic approach unites hardware, software services intelligence and data center operations all working cohesively towards strategic, long term goals.

That's the future that we're building. Where Gorilla serves as the foundational platform the delivery engine and the trusted partner for intelligent large scale infrastructure. I'm often asked this question, how long does it take for Gorilla to operationalize these large scale projects? The reality is that it depends. These projects all begin with clearly identifying and understanding critical problems. Whether it's enhancing traffic safety for a city, providing secure surveillance for a nation, or helping partners modernize infrastructure. The foundational understanding informs every subsequent step that we take.

Once clarity is established, we move quickly but deliberately involving relevant experts early and clearly mapping out constraints may they be environmental regulatory and operational. Then we leverage our extensive library of proven blueprints. And we take these designed architectures optimize them through our own ownership of the entire stack which is software, AI and hardware. So, what distinguishes Gorilla? Is our dedication beyond product delivery, We manage deployments integration complexities, AI optimization for localized conditions, custom model creation and user training. We engineer solutions for the real world resilience not for lab simulations. The One Amazon project exemplifies this commitment from Gorilla, starting from a shared vision for intelligent conservation of the Amazon Rainforest, we have are architecting a robust solution, integrating advanced AI secure communications and physical infrastructure. So, how does the Gorilla project come to life? It's very simple. Through clear purpose, precise execution and total ownership from start to finish. This is how we consistently transform complex problems into impactful, lasting solutions. With that, back to you, Jay.

Thanks, Raj. I'm now very keen to open the forum for the analysts. And questions. Thank you.

We will now begin the question and answer session. The first question comes from Mike Latimer with Northland Securities. Please go ahead.

Hi. This is Keaton Choki on for Mike. Looking at your guidance I was wondering how much does the Egypt project represent of this year's revenue guidance?

Hey, Keith. Happy to take that question. So if you looked at let me go back and I think since Mike's been involved with the business ever since 2022, Egypt didn't form a big part of our revenue in 2022, 2023, there was a big part of our revenue. 2024, we've managed to kind of de risk the business. And I think that was something which I've been talking about as to how we move away from single large contracts. Today, if you look at our revenue, it's broken down into four or five large customers. '25, I'm looking at roughly about seven to eight large customers. All in all, we have about 97 customers today. And Egypt currently is about 50% of that. Probably slightly lesser than that. Next year, it will be under 30%. And the year after, it will be well under 15%? So we our aim is to make sure that by the time we are in '26 and early twenty twenty seven, we are going to have no client greater than 10% to 15%.

Okay. Thank you for the color on that. And then what are some steps needed before you start recognizing material revenue on the one Amazon, the Thailand energy deal? And the Asia SmartSchool deal. And when might that occur?

Sure. I mean, think the first thing the first most important thing which I mentioned earlier is that it takes us a lot of time and effort before we start building each of these customers' requirements, understanding the customers' requirements. So whether it's the solution design, whether it's the architect planning, whether it's a compliance, whether it's working with multiple partners, whether it's POC validation, building their infrastructure policy and so on and so forth. Once we have done all of those, it then takes us at least between three to four months before we can start building and scaling up the operations. Now first of all, what we have to do is we have to build the people and structure. Obviously, you cannot scale up globally without having a playbook. So we have to kind of build a leadership team We have to bring in deep operational capability. We have to create the model for the customer. And then more importantly, being a small company and everybody keeps pointing us out that we are about 150 to 200 people. Today we are about 200 people. Raj currently is hiring little over 140 people as we speak. So by the end of this year, we should be anything between 600 to 800 people.

But the problem is that you have to move with speed for the customers. The complexity of the delivery As we roll out and you talked about the Southeast Asia project, no two projects are the same. Right? Whether it's lawful interception deployment in Taiwan or the Ministry of Education in Southeast Asia, every single one of them comes out with their own compliance integration, political context and so on. So there's no copy paste button for each of these.

Third, is cash flow. We have to make sure that we're working in multiple jurisdictions with different banking regulations. FX controls, payment cultures, managing each of them is a master class of patients, if I may. And let me tell you that Egypt alone has given us an entire MBA course already. And then finally more importantly is to deliver. I will let Laraj kind of fill in a few sentences on that. But when we do country led development programs, we have to absolutely bake ourselves into the entire delivery framework. Raj, do you have anything to comment?

I'll echo what you just said, Jay. The The merging of minds with the different work styles and mechanisms in place across countries is certainly a learning to be had. But the good news is that we've tracked that nut pretty early on in the equation itself and we've established rhythms across all of these different governments where our execution is pretty much like clockwork at the moment. So I think we are in great standing.

Great. One thing I'd like to add is also we discussed how these projects ramp up takes time. And we don't include the any of these projects into revenue forecasts. Until we know exactly when and how much So as we're sort of signing them and doing the scope of work and getting started on the work, It's not included in the forecast. It's only when we know how much and when that it moves into the forecast.

Okay. Thank you. Thank you for that additional color. And just kind of spinning off that, do these do the contracts for these large deals provide upfront payments so you can buy the required supplies and hardware And another kind of spin off of that for the one Amazon deal, the funds raised so far. How much of that will get directed to Gorilla for technological development?

So yes and no. It depends on what these projects are. For example, the educational project in Southeast Asia is a year multi phase smart education initiative. The first phase is only $460,000,000 plus out of the 10 phases, which we talked about. The customer is not going to pay us an advance payment that he's going to pay us on a monthly basis for the next five years. So think of it at this way. Every year year I complete the first phase the next phase begins, and the phase after that and so on and so forth. So when you look at the project itself, by the time I'm on year nine, I'm already on year 14 because it will take me [indiscernible] The project. By the time I'm in year 11, it will be year 16 and then you've got a five year maintenance project. So you're looking at a twenty year project and the customer is going to pay you monthly for the next fifteen to twenty years. So no, those customers will not pay us in advance, but if you're looking at someone like the PEA project, for example, they are going to pay us in advance, but that's not going to be enough for just buying all the the equipment, both hardware and software.

I think it would be unrealistic for us to come back to the market and tell them that yes we're going to get paid and that all that is going to cover for for the cost of the project itself because the project is $1,800,000,000 and the customer decides to pay us 10% in advance, it's only $180,000,000 we would still need to raise substantial capital. And that's why when Bruce alluded to the fact that we are going to be working with the likes of the local is institutions, whether it's EIF, whether it's the UKEF, whether it's ADP, whether it's local banks, Citi, JPMorgan, it doesn't matter who it is, we will try and raise money. [indiscernible] At that point of time. Does that answer your question? [indiscernible] Thank you and congrats on the quarter. I'll return to the queue.

Thank you.

The next question comes from Brian Kinstlinger with Alliance Global Partners. Please go ahead.

Great. Thanks for taking my questions. First, Bruce, you mentioned an 810% to 18% margin for 2025. Was that EBITDA? Was that net margin I just I didn't catch that.

Net margin, 20% to 25% forecast for EBITDA margin and net margin is is a wider range.

Got it. Okay. And then as it relates to the $400,000,000 plus smart education first phase of that contract, In December, I think you announced you were down selected as the provider. I kind of thought of that as an intent to award. Has that contract been finalized? I'm confused by your answer your previous answer. If it hasn't been signed yet, what are the obstacles right now to getting that contract agreed upon?

Brian, if I may, there are no obstacles The only issue being that we're going through a very, very stringent POC with the customer.

The issue being that we're talking about the customer jumped the gun. Okay? What he is looking to do, he wants to sign the entire 10 faces with one party, which is us. The issue being that we have to make sure that the technical design the specifications the milestone based payment the deployment the software the network the integration timelines, the approvals the stage deployments and all of the technical audit need to be defined before we can put into the paper. The SOW alone and Raj and I are working with this along with our team, is a little over 900 pages By the time we can get this over the hurdle with these guys, it's taking a much longer time than I had anticipated. It was a simple $460,000,000 contract. I think we would have signed it and we would have started moving forward.

The problem we have today is that the customer now wants to actually move forward with the entire budget And just FYI, the budgets for face II and Phase III have already been approved as well. By the parliament.

So with the 900 yes, it answers it, but I'm going to ask a second I could with this large document, as well as the POC can you help frame for investors what a reasonable timeframe is Are we six months away from going through the POC and getting that signed? Is it much shorter? Is it longer? Just help set expectations for investors, if you could.

Absolutely. So Raj, I think you should take it since you're very close to the project. On the ground. If you want to?

No, absolutely. So if I to look into my crystal ball, I would say that the best guess estimate at the moment would be somewhere just south of six months. And that's a good estimate for us to keep in mind and track. We are rapidly trying to influence the customer to get there even quicker. But that's where I would say. Good news on this particular front is that while the paperwork long and arduous, the proof of concept is actually progressing pretty well. We've finished a bunch of surveys over there. We've got some foundational systems already running. We're just staying true to our ability to deliver value quickly. And I think that differentiation is actually helping us win the hearts of the customers even more if we can. So all in all, it's on the up and up.

Great. Thanks for those comments. If I can move to One Amazon, if I'm listening to your commentary accurately, there's a lot that has to happen before you start generating revenue. I think we all should understand that. But when two weeks ago you come out with a press release that that suggests $100,000,000 has been raised I think, or been allocated for one Amazon on the technology side what are you trying to communicate to the market? Because I don't think that changed the timeframe. So help us understand of what you want to communicate the meaning to Gorilla in the near term for that or long term.

I'll take one off of that question. Raj, you may want to talk about the technology side of it once I've kind of addressed his his question. So Brian, the One Amazon project is is pretty much on track. In fact, it's ahead of track Why? Because they have received commitments from a number of very very large sovereign wealth funds and foundations and institutional investors come in and want to deploy capital. Now as you know, Rodrigo Velozo is dynamic He's looking at raising anything between $100,000,000,000 $750,000,000,000 over the course of next twenty years. That he can help support the Amazon. Of course, being Brazilian, it's very close to his heart.

Now what we have when I said $100,000,000 it was basically the capital that was needed to initially run the proof of concept. And I'll let Raj fill in once I've completed this The proof of concept is basically to deploy it across a few hundred hectares to figure out the topology co mapping to figure out whether we're using LiDAR, whether we're using biodegradable sensors, what kind of data are we going to generate? How do we clean up that data? How do we democratize the data? And I think you asked the question, so how much of that money is going to go into Gorilla? Now as the per the agreement we have with them, it's between 2530% is what we have agreed to for every $100,000,000 that's raised. But that said, the first $100,000,000 most of that, if not all of that will go into the proof of concept to Gorilla directly. As well, because this is a very, very important proof concept because you've got all the other investors sitting on the sidelines waiting to see what comes out. [indiscernible] Thanks for clarifying that on the business side. From a technical perspective, I think as Jay pointed out, we've actually made significant progress on that particular front.

First of all, the core data analytics engine is something that we already have. Which has been running for many governments on our cyber infrastructure portfolio for almost fifteen years now. And it's been growing from strength to strength. So all we need to do now is to button up some additional sensors onto that particular pipeline. We have the system for functional end to end in our R and D labs. Both in India and in Taiwan, and currently what we're really working towards is identifying the right mix of sensors for ground truth. And we are also talking to a bunch of satellite imagery providers in order for us to figure out what the truth from the sky is going to be. So, there is an amalgamation of data points that we need to collect, synthesize, and summarize in order for our customers to kind of be able to digest the value behind the declines that are being created. But it's something that the whole team at Gorilla is really excited about and it's full steam ahead from our perspective.

Okay. My last question is, is management still committed to reporting results on a quarterly basis going forward? Should we expect four separate earnings reports this year?

Absolutely, yes, Brian. We are. Okay. No, sure. But just FYI, Brian, we actually built a very, very strong team, which is now going to be working in tandem on a quarterly basis. Broooms' team, the finance team now spans across the globe. And I think we're working tirelessly day in and day night his team is going to be delivering on a quarterly basis. And I think we owe it to the market, but more importantly, we to be transparent. I think we're going to stick to our guns. The next question comes from John Roy with Water Tower Research. Please go ahead.

Great. Thank you. Kind of wanted to step back a little bit. Certainly, every company on the planet is saying, we're AI company and we're doing a lot in AI.

Raj, I wonder if you could give us some color about what is different about the approach you're taking? Is it generating any barriers or kind of give us some more depth as to what exactly is AI about your product suite?

Thank you, John, for that that question. I completely that we live in a very crowded space. I like simple analogies and the simplest way that I can put it is that we build AI that actually works where it matters. The net net is that we are not trying to out GPT anyone. We are certainly not trying to chase academic benchmarks. Our focus is on real world impact. [indiscernible] more importantly, we focus on environments where traditional AI just doesn't cut it, like on the edge. In smart cities and in secure and often offline deployments, right? We specialize in edge AI, which is built from ground up, and the idea is to run on constrained hardware. And wherever there is real time processing, whether that's on a camera pole, on a router in the field or a rugged device in the factory, we are there.

And that is essentially where we focus on, especially in areas where latency actually matters. And our strength is that we optimize for the edge don't optimize for the cloud, and this gives us a huge advantage in the market specifically in markets like public safety, transportation, critical infrastructure, places where you just can't wait around on the cloud to think.

And if you think about it from a smart city perspective, the most important aspect that we've been trying to convey through this last hour is that we're not merely trying to do demos. We are actually powering actual infrastructure, maybe traffic systems, access controls and cloud monitoring or environmental insights with regards to One Amazon. So we're actually working very closely with the governments, the integrators in such a way that there is purposeful AI being developed to actually solve real world problems. So, the way I think about it is that Gorilla's AI is built for the edge it's tested on the field and it's scaled for real world. [indiscernible] It's not just smart, right. It's practical and then it's delivering value today. And delivering value today in real time and ensuring that our customers, no matter who they are, governments or cities or enterprises, they see that return on investment in weeks not in quarters. That's always our goal. And I think our agility and the simplicity behind our AI solving very complex problems is what's actually helping us leapfrog in the industry today.

Great.

That's good to hear.

One of the other things that you guys have done is you said some pretty significant and transparent expectations for 2025 and 2026. And I heard one kind of milestone along the way which is six month signing coming up. I wondered what other kind of milestones might investors look for along the way to see that you are going to hit what you hopefully are going to hit 2025 and 2026?

John, is that for me? Jay?

Yes, or for Bruce.

Okay.

I can take it. So [indiscernible] So as I mentioned, the biggest milestones that we would be focused on would be basically the contracts that we've mentioned getting a more concrete precise idea of when the revenue is arriving and how much. The process is multiple steps. So, you start with an MOU or some kind of earlier commercial agreement, then you move into scope of work, proof of concept, you iron out all the details and then you move into a definitive contract, Definitive contract includes the milestones, the timing, the payment amounts [indiscernible] So I think that we have a very, very robust pipeline of qualified leads and also signed MOUs and work that's in progress in terms of scope of work, etcetera. And I think it's really just the passage of time and working closely with our clients to iron out, okay, this is exactly what we're going to do when. And that's what will get us to the right numbers and knowing when we will be achieving those numbers. But I think that in between the customers that were starting with and ramping up and also the business that we're in the backlog, I think that the forecast that we just set out are quite achievable.

Right. Okay. So Bruce, should we expect to hear for updates to the backlog as you report quarterly going forward? Is that something you hopefully will do?

Yes, absolutely. As As things as timelines get more precise, we are quite conservative on how we forecast. So when I come out with guidance, it's not me sticking my finger in the air. Right? It's me saying, okay, we're very sure that these contracts are going to deliver this revenue on this day, this timeline. And that's the only time that we start putting things into the guidance. So as we get a much firmer idea then we'll be able to do that. But the discussion about One Amazon that you heard right, so there's funding there. From One Amazon. Know how much funding is there. We know that the timeline will take several months. But we know that maybe in 2026, maybe in 2027, there is a decent chunk of revenue that will start to appear. It's a similar situation with in Thailand with the PEA, the smart electricity grid. We know that that's a mammoth contract. We know that it takes time to get it right from the customer side, from our side. So, it could be that the revenue starts to flow in earnest. In 2020 early twenty twenty six, late twenty twenty six. We just don't know and we're not going to rush.

We're not going to overpromise and under deliver. That's not our style.

Great.

And maybe sorry, my apologies. Let me interrupt there. I also want to add something there. Right? Let me be blunt. If someone believes that we get an AI powered smart grid or a sovereign digital infrastructure plan and that could be flipped on like a light switch? Then they do not understand the space we operate in. Again, we're building long term high margin recurring revenues, which are deeply embedded into infrastructure. So the commercial flow basically from my perspective is structured, predictable and layered. What we are trying to build, which I think a lot of the market doesn't still seem to understand is that we are building our pipeline for the next twenty years.

So when I go and tell you that I am going to close my deal with the Ministry of Education project, we're not just talking about rolling out the entire solution, design architecture and so on.

We have to make sure that we have to understand their legacy systems as well.

But that takes time.

Secondly, when you look at projects like for example, we're working on airports across Latin America. We're building smart cities in Santa Marta and Cartagena. We have a lot of political headwinds to deal with as well. It's not just about coming in and dealing with the project, It's also about creating the economic catapults. Now you are very familiar with our model as to how we move forward. We're not just investing into a project. Gorilla is very unique, and that's why today, morning as well, when we were having a conversation with one of the states in The United States, the Secretary of State was like, how do you think you could benefit the local market? They're not talking to us about projects. They're talking to us about economic development of these regions. Now what we are trying to do is we're trying to make sure that we are able to sustain our growth at the same time make sure that we focused on key KPI. Now when we track execution across we track four different core dimensions. Whether it's revenue conversion we focus on delivery milestones, cash flow and client satisfaction. So we monitor revenue velocity We make sure how do we measure how quickly are the contracts signed, but what is our active billing look like more importantly what is our pipeline conversion.

That's number one. Number two, we make sure that every single project, whether it's a POC, whether it's a high level integration, testing and so on, we track project delivery milestones down to the country level to the client Then comes the responsibility falls on Bruce and his team on the financial side where we look at cash collection cycle. Kind of payment realization needs to be happening? What is closely monitored? We have teams. And so on and so forth. And more importantly, you realize that this is not this is not a sprint, it's a marathon. That means we have to now operate across multiple countries multiple jurisdictions multiple political and tribal issues we have to work with. And then finally, client success. Every single customer has a different client satisfaction indicator. So we have to make sure that we are working very closely with them. So to do that today, I'm also, I think one of the things which we haven't to the market is that we've internally set what we call a strategic office of impact group led by a lady called Deborah Hudson, who's been hired recently. That allows us to track all these KPIs very, very effectively.

And make sure that when we deliver these numbers to the market and to the analysts, we make sure that they are spick and span to the last T. Great.

That's very good. Thank you so much.

Thank you. This concludes the question and session. I would like to turn the conference back over to management for any closing remarks. Please go ahead.

Well, first of all, thanks everybody for for attending the earnings call. I am super excited about the future of Gorilla. And all I'm going to say is that we are building additional backbone for the modern world We would love for our investors to continue being with us. Invest with us and more more importantly we make sure that all of our employees and shareholders are here to win. So thank you once again for being the backbone of our business and I will continue to work me and my team will continue to work hard to make sure we deliver. Thank you everyone.

This brings to a close today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.