Richard Greulich: What is the monthly subscription fees for the upgrade then?
Kevin Mills: $5.99 a month.
Richard Greulich: That’s a pretty hefty fee, I mean, for somebody — unless somebody is actually using it in a fairly robust manner. Okay. Interesting.
Kevin Mills: Well, it’s not — well, think of it this way. I don’t know if you’ve ever tried to use a free camera-based scanner. But even if you go to a restaurant, there will be a day when because of the light and the clouds and the shadow, you’re sitting there trying to read the menu and your phone won’t do it, right? And it takes an extra 30 seconds. Well, if you’re doing hundreds of scans a month and what, 10% take an extra 30 seconds, basically, it’s a no-brainer to upgrade because it saves you time. And again, you have to remember, we’ve been servicing the people who have given up with camera-based scanning. It’s not like we believe anyone is using our physical scanners that hasn’t already given up on the camera-based scanning, right?
And whereas the subscription is $6 a month, to buy a physical scanner is $200 a month — $200. So it’s — we sell 100,000 scanners to people who essentially have given up on camera-based scanning because it doesn’t meet their needs. And we’re trying to have an interim step that gives them the ability to have a better camera-based scanning. And they also will have the opportunity to have a physical scanner depending on their needs, right?
Richard Greulich: Maybe I misunderstood you. When you said 5,99, that’s $5.99 a month or $599?
Kevin Mills: Sorry. No, no, no, $5.99.
Richard Greulich: That’s why I said what I did when you said 5.99. Wow, $600 a month is a lot…
Kevin Mills: No, no, no. $5.99.
David Holmes: If you can find us customers that are willing to spend that, we’ll take them.
Richard Greulich: Thank you. I appreciate you bearing with me. I just have two more questions. So deferred tax asset on your balance sheet, you’ve taken no reserves against that, and yet you’ve been unprofitable for the last year to two.
Lynn Zhao: Yes, I’ll take that question. Yes, there — actually, at the end of the year, we had a professional who did the analysis of our position, of course, based on the management’s forecast for the next five years, et cetera. Then our auditors have reviewed their analysis. And then all three sides basically concurred that we currently don’t need any reserve for the deferred tax assets.
Richard Greulich: Okay. Well, thank you very much. I appreciate it.
Lynn Zhao: Yes, just a quick comment. We take that practice on an ongoing basis so as needed as well as annually, we do the analysis.
Richard Greulich: Thank you for taking my many questions. I appreciate it. Thank you.
Lynn Zhao: Sure. You’re welcome.
Operator: [Operator Instructions] And we have a question from William Carroll, a private investor. Your line is open.
William Carroll: Yes. So explain a little bit about, so as you’re getting into the industrial markets, what would that type of customer look like? Would that be a [indiscernible]? Or what would be your path to market for [indiscernible] distribution where you have manufacturer’s reps selling the product? How does that work?
Kevin Mills: In the case of the industrial, we’re primarily targeting Apple premium resellers, so that would be where we think it would go. In most of the solutions we’re proposing, we are scanning elements that works very well with an iPad, iPhone-based solution. And therefore, those customers would already have a preferred Apple reseller. And that Apple reseller, we would hope would also sell our products to those customers.
William Carroll: Okay. That answers my question. Thank you.
Operator: I’m seeing no more questions. I’ll turn the call back over to our moderators.
Kevin Mills: Okay. If we have no more questions, then we’d just like to thank everyone for participating in today’s call and wish you all a good afternoon. Goodbye.
Operator: That concludes today’s conference call. Thank you for attending.
