Blair Abernethy: Okay. Okay. And just from the overall company perspective, Neev, on the Q4. Do you provide or will you provide some sense of what the recurring revenue component is?
Neev Nissenson: Yes. I think that Shai had mentioned that revenue coming from the AI machine vision has increased over 100% smaller last year. That revenue does have of course, a portion of recurring revenue that is also increasing and we expect it to increase specifically .
Blair Abernethy: Okay. Presumably, at some point, you’ll start disclosing an ARR and annualized recurring revenue amount. Is that in your plan sort of maybe this year or next year?
Neev Nissenson: I think that as we’ve been pretty consistent about this, we kind of give general ideas of these types of information and we haven’t made a decision yet on disclosing the specific amount of recurring revenue that we have compared to longer term.
Blair Abernethy: Okay. And then secondly, on the gross margins. So — and I know you’re not giving guidance at all, but should we expect — given the pipeline you’ve got that you think you’re going to execute on 2023, should we be expecting incremental improvement in gross margin in ’23 over ’22?
Shai Lustgarten: Go ahead.
Neev Nissenson: As I mentioned in Q4, we had a military loss event that hit the cost of goods sold, which is not expected to recur, which I think had the effect of suppressing our gross margin. And it’s not going to occur in 2023, I do expect the gross margin to improve in 2023.
Blair Abernethy: Okay, great. And just one other question for me. On the Safe City area, Shai, obviously, it’s been – great traction and seen with a number of smaller municipalities and so forth. And I’m just wondering either directly or through channel partners, are there opportunities to go after some of the large cities or major cities – major metropolitan centers, but something that might look like a much larger longer term contract. Is that — are those out there? Or what’s your approach to that end of the market?
Shai Lustgarten: Well, the answer is yes, but I would like also to mention that a contract is a contract. I mean, we found that small cities, large cities, medium cities, it would be rare to not continue using us for at least five years due to the – again, game changing, it’s not only the revenue share. I mean, when you look at the – when you look at the success stories that we have solving missing person investigations, bringing back an elderly person on the silver alert, bringing back the person home after an 1.5 hour been missing. Doing that kind of stuff, which is very exciting. This has a lot of effect. If we continue to perform this way, and provide the game changers and affect our everyday life of the residents in these different cities, I don’t see a reason for them to replace us.
So we’ll definitely continue working on that. So the contract I think for larger cities or small cities or medium cities, the term of these contracts will remain solid for several years the same. And like I said, the answer is yes, to go after a larger cities. The very good point there is that we already have references in this large cities. For example, let’s say we – Los Angeles now wants to get a Safe City product They will go to these very big large integrators that would not wake up in the morning if they were not going to receive $100 million contract to do this. And we will come with something that is very different, very unique and I would say much more innovative as well and provide them even better, I would say, ROI – immediate ROI.
And when they will talk to us about that, they will understand that we already do this in their airports because we’re already in the Los Angeles airport and we’re already doing across the city many of their parking lots as well. So the OMNIQ is not a stranger to these very large cities once the opportunity will be there.
