Richard Mills: Will, you want to talk about that?
William Logan: Still early stages, Howard, right, where we have the theme parks who are customers. We have a number of retail customers who are exploring and have created what we’ll call media companies within their businesses. So they’re exploring and planning and prepping. We have a number of ad network or ad opportunities in the pipeline. None that we would say today has moved the needle as far as the media sales operations. But we can see the industry moving in that direction, probably a larger opportunity for the second half of ‘24 into ‘25.
Howard Halpern: Okay. And one last one, your cost structure in place can support the projections going forward with just modest increases in G&A down the road?
Richard Mills: Yes, that is correct.
Howard Halpern: Okay. Thanks and keep up the great work.
Richard Mills: Thank you, Howard.
Operator: And one moment for our next question. Our next question will be coming from John Roy of Water Tower Research. Your line is open, John.
John Roy: All right. Thank you. So Rick, I want to start off saying congratulations on your promotion. I did want to get maybe a step back and look at possible new use cases for your products and in particular the software. I was curious, as if to you might be getting entrees into what you can do with the data, is most of data owned by the company? And is there any chance for some AI to go in there and help with the software?
Richard Mills: Great question, John. Thanks for joining the call. The answer is, we continue to play with AI in the background. There’s generative AI, which we believe will help customers relieve the burden of fresh content. So it will do some auto content generation, that’s number one. Number two, we believe there will be process improvements with AI and significant reduction in the maintenance work that customers sometimes have to do around their signage network, some of the operational aspects. So we think AI will play in both of those. In terms of the data, today under our network agreements, all the data really belongs to our customers. We have access to it. We can run and glean information from it, but technically today the data belongs to our customers. Will, anything to add?
William Logan: I think that’s correct. I think there’s an opportunity down the line. We’re starting to get questions and more inquiries about analytics projects. We have done some in the past, with respect to AV testing on menu boards or in retail environments. I think as customers start to look at driving that customer behavior through the technology more, we will see growth in that area. Today, still early stages.
John Roy: Great. That sounds interesting. So as a follow on, do you see possibly increasing R&D spend in the future going forward?
William Logan: I would tell you that there’s likely a reduction in R&D spend moving forward, particularly in CAP software, not because we don’t think there are investments to make. We’ve highlighted over the last couple of years, a heightened level of spend in those areas associated with the key customer contract and the internationalization of our automotive platform. We’ve been slowly spinning that down here in the second half of 2024 as we move towards an end of year launch or relaunch, if you will. So I would expect those numbers to reduce in the future and stabilize somewhere in the $2 to $2.5 million a year range.
