Joseph Nerges: Perfect. The end result was a more robust product when we finally came out with it. And I’m assuming that what we built, it can be utilized almost across the board on any industry like you said. Okay. One thing, on this major reseller agreement you just signed a contract, is that one — was that — you talked the last time about two major system integrators. Was this the contract that was just signed one of the two or is this a separate group altogether?
Victor Dellovo: No, it’s a separate group.
Joseph Nerges: It’s a separate group. We were talking about other major integrators that we haven’t — I think you had two the last time. Is this now three or…
Victor Dellovo: Yeah. We’re I think about half a dozen of I would say decent size integrators. There’s a couple that are real — this is annual sales in the billions.
Joseph Nerges: And just a quick point on this. When you signed the contract, what’s different with the contract versus what you’re talking to the others? I mean is there any performance requirements in the contract for the reseller or is it just a contract that any one of them could have signed a contract of the number you’re talking about?
Victor Dellovo: Well, let’s face it, anybody can sign it, but some of these larger ones because they’re quoted by every product out there, they only bring on new products where they believe A), there’s a gap. And then of course too, that there’s a big — there’s a certain amount of revenue they can get from a product line, right? It’s not — onetime sales is something that they’re not looking for. It took I would say at least six months to go through the process with them of them looking at the product and then also bringing our product into some of their customers and talking about it and getting feedback and looking at a real need that’s out in their customers’ environments. And that’s kind of what brought it over the finish line to get the contract signed was that they believe there’s enough for their customers that can look at this product.
They’re not guaranteeing anything of course, but if there’s truly a need and a gap and we are talking I would say at least a half a dozen of their customers already in different stages. We’re hoping — they have a lot of customers. I think that the target that we looked at is somewhere over 500 potential customers that we can at least talk to that may have a need of some sort for AZT.
Joseph Nerges: Okay. Well, that’s great. I mean it’s a huge market to expand. Just one other point, and you brought this up at the annual meeting, you talked about that you get — you often get calls down there in the TS group for people that are after — are looking to buy either the TS group or buy into our managed services. In other words, offerings. They want to buy our managed service offerings. Has any of those talks ever reached a dollar or have you just not advanced those talks at all, we’re not interested?
Victor Dellovo: No, we’re just concentrating on building the business.
Joseph Nerges: Okay. But you have fielded calls or people want to know if we’re even in the market to sell is what you’re saying?
Victor Dellovo: Yeah. It’s a lot of e-mails, and there’s a few people that actually catch me picking up the phone that I have conversations with. But right now, it’s just about building that monthly recurring revenue.
Joseph Nerges: Yeah. The talks have never progressed is what you’re saying other than just a pure interest that people are floating some questions out there to see if we’re interested at all. Well thanks a lot, appreciate it. It seems like we’re — just a matter of time to get some of these big numbers across the board for AZT. Thanks, guys.
Victor Dellovo: Thanks, Joe.
Gary Levine: Thanks, Joe.
Operator: Your next question for today is coming from Will Lauber with Visionary Wealth Advisors.
William Lauber: Hi. Can you — there’s been some confusion on our end, how the AZT product is being priced. Is that a monthly recurring subscription or…
Victor Dellovo: Yeah. Moving forward with the customers, it is a monthly recurring. Gary had mentioned that this one is upfront. And we made an agreement with the pharmaceutical organization, just because they helped us test it for 18 months, that they could purchase it upfront as a onetime fee with yearly maintenance after that. But moving forward, it will be more of like a crowd strike model where it’s a monthly recurring.
William Lauber: Okay. And is that priced by site or…
Victor Dellovo: Per user. Yeah. Per endpoint I should say, which — we’re in the — we’re not truly end user as laptops were in the server as the endpoint because we’re protecting the application. If there’s a server with 10 VMs, it would be basically 11 licenses for that. If you have 1,000 servers, you can do the math on that.
William Lauber: Okay. And I guess one of the things that I noticed in this latest release compared to some of the early ones I guess in particular, that Fortune 500 chemical company, I think that was just for one site. Does this pharmaceutical company, does that include like all their manufacturing sites? Or is there still some that could be — come on later?
Victor Dellovo: Yeah. This is — I’m hoping it’s just the first phase. No guarantee, but once we roll these out, then we’ll see what’s next.
William Lauber: And then with that full manufacturing company, how are things going with that or does that have to be — is it each plant manager that has to make the decision to add that or how is that?
Victor Dellovo: On which company is that?
William Lauber: The chemical company.
Victor Dellovo: Yeah. We unfortunately have to deal with each and every location separately. Where the pharmaceutical, this is being pushed out from a corporate level, it’s a little easier for us to deal with this rollout than the other one. It’s been challenging, but it’s a process.
William Lauber: It’s in one facility now. What’s the potential with that customer? How many facilities?
Victor Dellovo: I want to say there’s 80 sites.
William Lauber: All right. And have you guys been seeing any increased interest from the SEC rule about cybersecurity or how is that kind of playing out?
Victor Dellovo: We’re using it as a sales — it’s out there and we’re talking about it. Every time we talk about it, it’s one of our selling points. Not only the protection, but what could happen if you don’t.
William Lauber: Okay. Well, thank you very much.
Victor Dellovo: You’re welcome. Have a good one.
Gary Levine: Thanks, Will.
Operator: Your next question is coming from Mike Price, a shareholder.
Unidentified Participant: Good morning. Thanks for taking my questions. I appreciate the press releases, but they’re pretty vague. All of them have said multimillion dollar, and there’s no way for us to evaluate what the impact is going to be to revenues. And you said that you could use the buyer of the AZT as a reference in trying to secure new buyers, but what about publicly disseminating who a buyer is? It seems like it’s in everybody’s best interest, with their permission. It gives credibility to CSPi. And for the customer, it seems like putting up a sign in front of your house saying I’m protected by this security, and that’s almost a deterrent.
Victor Dellovo: It works opposite. If they know what it is, then they could potentially know what to do, how to hack. Two, we don’t have permission. It’s right in the contract, we cannot use their name. That was part of the terms and conditions. Two, we can use it on as I said a permission basis. Basically calling the customer up, saying I have this customer, they would like to talk to you, they would like to have a reference, are you willing to speak with them? And if they say yes, then we can set up the call, and then we can move forward. Any time I can use someone’s name legally, I would do it. If I didn’t, it’s for a reason.
Unidentified Participant: Okay. On the last conference call, you said you were in discussions with 50 potential buyers of AZT. Can you give us an update on that?
Victor Dellovo: Yeah, some have progressed. There’s some that are moving. Again, I don’t want to state it again, because then after I’ve got you guys driving me crazy on exactly. We’re talking contracts, but when that is, I have no idea. But yes, they’re all progressing. Some sell off. Some of them said, we love it, we don’t have budget for six months. It’s a normal sales game. But some fall off, some come in. And we’re setting — the shows did well for us. We have multiple POCs that came from the shows where they have the product, they’re testing it. And after the testing, then we’ll see how long it takes to close the deal. But there are some progressing in that. We have a couple of more shows coming up in March, which as they come up and they’re — we believe that it’s the right audience, we’ll be attending them.
Unidentified Participant: Okay. And if a reseller actually places, sells AZT, is this something that you’ll disseminate to the same as you have when you sell it yourself?
