Manufactured housing is a wonderful industry that we are really excited about. The cash flows are extraordinary on that business. We have not paid any cash flows to the common shareholders yet because it’s still in growth mode. But as the company achieves critical scale over the next few years, I anticipate that common shareholders of FG Communities will receive cash flow and/or some type of an exit through an IPO or some type of a recapitalization transaction that results in return of capital to shareholders.
Brett Reiss: Okay. Now we still have — FGF still has, I think, shares in OppFi. OppFi seems to have turned themselves around. They had a very good quarterly release. Do you hold your OppFi? Or do you — are you inclined to opportunistically monetize that to bring cash in for other initiatives? What are your thoughts on something like that?
Kyle Cerminara: So I don’t want to get too much into detail on our thoughts on whether we’ll buy or sell OppFi in the future, but we certainly are pleased with the turnaround. Some of the things that happened post the SPAC transaction, we are surprised with the CEO leaving and the earnings disappointment. But they seem to be back on track. I’m not on the Board or an executive of the company and haven’t been so for a few years. But as an outside investor looking in, they certainly are starting to show signs of improvement. We currently think the stock is undervalued and I would be surprised if we are selling at this price. But it all depends, at that time, what opportunities we have and whether — does it have more upside or downside. So we run everything like a portfolio. And if there’s something that has more upside, then we’ll take that into consideration. But right now, we haven’t been a seller.
Brett Reiss: Okay. Could you share with me and the people on the call the current situation with Firefly as you know it?
Kyle Cerminara: Yes, sure. So Firefly, as you know, or if you don’t know, it was a company that we originally founded as they work out from — we had a business called Convergent Media Systems that we eventually sold to SageNet. But Convergent had a customer that defaulted on us. We had significant screens that we could use for a business. So I came up with the idea, like let’s use the — let’s turn lemons into lemonade and create a business that we can use this customer that defaulted on us and turn it into a business. So we created a company called Strong Digital Media LLC, which was branded as Strong Outdoor. And Strong Outdoor went and signed one of the largest contracts in New York City for taxi cabs, and we installed all of our screens on taxi cabs.
We grew that business. We then — we sort of learned in the marketplace that Google had funded a company called Firefly. And if you know anything about Google, Google is obviously really successful in the advertising space and they have lots of money. So we were in the advertising space trying to pursue a technology model with less capital than Google, obviously. And we felt that Google had much more experience in technology than we did and had much more experience in advertising than we did and probably more experience in both of those than anyone in the world. So we decided to partner with Google Ventures and merge our business, Strong Outdoor, into what is now called Firefly. Firefly has expanded well beyond New York City to — when we merged with them, they had lots of other cities as well like San Francisco and L.A. But now they’re not only just nationwide in the U.S., but they’re also global in terms of they have launched cities outside of the U.S. like London and others.
And it’s really become from what was a few million dollars of revenue when we started it to now a much larger company with great prospects. They’ve raised over $100 million of venture money from some of the best venture funds in the world like GV, which is Google Ventures, NFX and Pelion Ventures and others. It’s a really attractive cap table that we’re proud of. And beyond that, we expect them to continue to grow revenue and ultimately earnings and have exited in that company when the Board — I’m on the Board of Firefly. And when the Board feels that the company is ready to be a public company, that’s sort of the plan, is to at some point take the company public.
Brett Reiss: Great. I will drop back in queue. There may be other questioners on the call. Thank you.
Mark Roberson: Yes. Thanks for the questions, Brett.
Operator: Thank you. Our next question is coming from Bill Brewster, who is an Investor. Your line is live.
Bill Brewster: Hey, guys. How is it going?
Mark Roberson: Hey, Bill. Good morning.
Bill Brewster: I wanted to ask a couple of questions about the strategy in production. I think from the outside looking in, when I initially heard about getting into content production, I was concerned about the cash flow dynamics of the business and how much risk you all were taking. know that some of this has been disclosed in previous 10-Qs, but it might be helpful to lay out how you’re trying to minimize the potential outflow that is required in content production and how you’re minimizing the risk. I’d be curious to hear you talk a little bit about your strategy on that side of the house.
Mark Roberson: Yes. Bill, thanks for the question. I can start and Kyle may want to chime in on this as well. But yes, we are taking — our approach to content is pretty conservative in terms of the way we are approaching it. We are not allocating lots of capital to develop projects on the fly. It’s a pretty disciplined approach. The model that we deploy in the Studios group for developing content is we’ll spend small amounts developing projects to a certain stage where we have scripts and we have a marketable project that we can take out and determine how much interest there is. And the overall model is to develop these projects, build the portfolio, go out and market it, gauge interest and raise capital to support these projects either privately or through presales and minimum guarantees and then utilize those commitments as well as tax credits by producing these projects in tax-friendly jurisdictions to fund the production.
