Creative Realities, Inc. (NASDAQ:CREX) Q3 2023 Earnings Call Transcript

John Roy: Great. Thanks so much.

William Logan: Yeah. Thanks, John.

Operator: That completes the questions from the line today. Mr. Logan, are there any additional inquiries from the investor relations inbox that you would like to address?

William Logan: Yeah. Thanks, Tanya. There were a few that have come in during the call, so I’ll just read them and respond. The first was, do your customers ask you to sign agreements not to provide your services to their direct competition? The answer is typically, no. We have one legacy contract with some limitations on it that is expiring. Otherwise, no, we do not have any limitations on chasing competitive environments with our customers. Second, I think Rick addressed this. There were a couple of questions that came in about the supply chain and whether there were any lingering issues with respect to the third-party source product. The answer is that, that is behind us. We currently have no supply chain challenges. Next question, based on current conditions and backlog, do we foresee the need to issue any more stock to service our existing debt?

The answer to that is no, based on our current operating plan. We did the capital raise in August. We thought that the quantity of cash that we brought onto the balance sheet was sufficient to service the debt and get us through to production of cash, free cash flow on a net basis. So we look forward to getting there in the first quarter or second quarter 2024. I don’t believe we’ll need to take any other supplemental actions. Last item that came in, there were a couple of brokers that look like they reported or sent out some notifications with respect to our warrants yesterday about warrant exercises. We have looked into that. A couple of inquiries there. There are some — a batch of warrants expiring on November 19 from our 2018 offering.

So I think that was just an error by some of the brokers. It’s not an exercise, but instead an expiration. Those were the questions that have come in to the inbox.

William Logan: So let me conclude the call by thanking all of our shareholders, clients, partners, and employees for their continuing efforts, commitment, and support as we work together to transform Creative Realities into the leading brand in digital signage solutions. This concludes the Creative Realities 2023 third quarter earnings call.