Kris Tuttle: Okay. And is that when if they do that broadening out, will they just go with you guys or would they —
Will Logan: Yes.
Kris Tuttle: They would, okay.
Will Logan: No, that we’ve already been through the front end process to be evaluated as the partner been selected, we helped actually design and engineer the solution on the hardware side and have tested that with our software. So we are queued up. We are the partner of choice. Now it’s just a matter of how quick will they scale.
Kris Tuttle: Got it. And then similar question, just on you announced the deal with Black Rifle and I wanted to understand, particularly like this QSR thing is kind of — it’s interesting right, there are companies like PAR Technologies out there that are going after that market. And then you have Toast and restaurants that are more back-end and infrastructure focused. I’d love to learn more about what you’re doing with Black Rifle operationally as well as sort of how you guys see yourself playing more deeply in that market?
Will Logan: Yeah. So with respect to PAR, Toast, those folks, we actually have our Clarity software, our food based platform integrated to those partners at the peak on the POS side, so that there is a single source of truth. A change in one system or the other will automatically reflect on the digital menu boards. So that’s typically something that we’re doing at the start of an engagement with the QSR. It hasn’t, frankly, been a lot of competition, it’s more of an integration with those folks for a combined solution for the customer. In the case of Black Rifle in particular, they actually had digital signage already, and they had rolled out with a very bare bones, Samsung Magic info license that comes embedded in the display, but does not have any kind of dynamic capabilities.
That’s been in the field for six months or a year day. They indicated it wasn’t giving them what they need. And we’re doing a virtual conversion of their existing units. I think it’s about 600 displays live in the field that will come over to our software platform here in 2Q, 1Q and 2Q. We did some testing in 1Q. The rest will go this quarter. Any new locations will then be deployed our hardware and our software solution.
Kris Tuttle: I got it. And then ultimately, how big could they be after that 600 units are converted?
Will Logan: Yeah, great question. I think that they have intentions if you read about them to scale up, not sure if that — where that gets to, but they do have about, I believe, six to eight screens per location, right. So if they end up at 1,000 locations at some point in the future, a good proxy would be six to eight displays per.
Kris Tuttle: Okay. Got it. And then my last question, I’ve seen some talks about this, is that because you guys have made some acquisitions and it’s relating to your software pricing. Is increasing pricing for your software an important factor in the growth there like when some of these older contracts renew? I’d love to get a feel for what that looks like. And then if you have as you add module, you have the opportunity to go back to your base and offer them additional functionality at higher — essentially higher subscription prices. So I’d love to get a little bit more insight from you on that.
Will Logan: So I would say, yes, on all fronts, on the incremental services and upsell, particularly with respect to adding our ad logic platform for network monetization, we go to existing infrastructure accounts and offer them that that added layer of SaaS, which we think will be additive to existing customers on additional incremental subscription price. We are also seeing two other things that are important, Kris. One is new customers with new devices added, we are adding those today at a higher price per endpoint per month than our existing average today. So each new endpoint is slowly bringing up my average SaaS per device per month. We’re also lapping some longer-term renewals. It’s part of what you saw in our disclosures around where we are today in March versus where we were at 12-31.
We’ve had a couple of contracts where we’ve gone back, renegotiated, and were successfully able to increase prices on the existing SaaS customers. We’re still we believe, as this market continues to consolidate and some of the smaller bottom feeder players dwindle out over time that there will be a slow rise as those renewals occur over the next one to two cycles.
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?
Will Logan: Thanks, Michelle. We did have two quick questions. I’ll just run through them and then we can close the call. The first was just an inquiry about generative AI development at CRI, the company’s strategy with respect to generative AI is to provide for integration points with its software platforms to address opportunities associated with the production and delivery of contextual content. That’s where we see the first play on the customer side, and we are exploring several partnerships at this time. There are obviously other use cases internally for operating effectiveness. But from a customer standpoint, that’s we’re focused. Also had a question about the cap table and just the warrants that were outstanding. There are two tranches with an exercise price of .
