Ispire Technology Inc. (NASDAQ:ISPR) Q4 2023 Earnings Call Transcript

So from that point of view, really that’s why the deal desk serves a great deal in our decision process. We feel through the deal desk and through the type of customers we are working with, AR risk is going to get less and less. However, larger MSOs on the other hand also have the scale to demand a bit more favorable payment terms. So we are managing both aspects carefully. The typical deals or contracts include the payment plan. So basically in addition to payment terms, for some of them there is also, even if they don’t hit certain payment terms, they will need to hit certain payment plan. There is minimum threshold there. So all those factors together that happen in the finance and sales organization, I think will certainly help us manage in cash and manage in collection.

For a lot of the past few accounts, we also worked out payment plans with them, and we feel more than ever, those accounts will complete their payment to us. So Bo, did I miss anything?

Bo Pei: No. Yeah, I think that answers my question. Thank you so much. And then my last question is on operating expenses. I noticed operating expenses increased over 30% from last quarter. Can you just share some color on the increase and then how should we think about operating expenses level going forward, like the next few quarters?

Michael Wang: Yeah, Dan probably can answer that question the best. But I will point out before Dan answers your question. As Dan pointed out, one new element in the OpEx is reserved for AR. So, I think that’s probably the largest contributor. Dan, can you jump in and answer Bo’s questions there?

Daniel Machock: Sure, Michael. So we haven’t really commented on future OpEx or future net loss, but we are excited to continue to invest in the initiatives that we spoke about on the call, specifically in Malaysia with our tobacco initiatives and just overall general OpEx in the United States. We’ll continue to invest at the pace that we feel will continue to drive our revenue growth. I think we’ve proven that so far with our past few quarters and we should see similar trends. We will see OpEx expand as gross margin expands and that’s something that we’ll continue to monitor, as we focus on breakeven cash flow at some point in the future. Hopefully that answers your question.

Bo Pei: Yes, that was helpful. And that were all my questions. Thank you so much.

Operator: Thank you. [Operator Instructions]. Thank you. There are no further questions at this time. And with that, this concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.