Adam Stedham: Thank you.
Operator: [Operator Instructions] The next question comes from Daniel Orla [ph] with [indiscernible] Street.
Unidentified Analyst: I think everything was pretty much covered at this point. Trying to get a sense of how you think about the pipeline? How lumpy is it? Does it end up becoming like how far are some of these conversations along so that you can have greater clarity over the course of the year? And then in the context of that, just to reflect on the prior question in terms of share repurchase, how does that then come back and reinforce your ideas around capital management, what is the appropriate price for the shares. I mean if you were to look out and say, well, you really — we’re going to be running $50 million to $60 million revenue in 5 years out. And in theory, you should be buying back every share you could today. Obviously, that’s not necessarily the balance of risk that you want to maintain
Adam Stedham: Right.
Unidentified Analyst: But there will be data points along the way that we’re going to better inform that decision to reenter the market. I’m just trying to understand how you’re thinking about that tension in the context of your pipeline in terms of the trade-offs between gross margin? And then the second question is a little bit more EPS-oriented, let state with that starting point?
Adam Stedham: Great. So let me answer — so from a pipeline perspective. So on the authentication side, there’s 2 stages to this pipeline. Stage 1 is you have to have your technology stack or your technology platform, tested, integrated with, you have to come up with the go-to-market strategy and the integration of your technology platform into your partners who are going to then take it with some sort of smart packaging or Amazon transparency or these many programs designed to enable consumers to have confidence and knowledge. So we’re very far along on that. We feel very comfortable. We’ve had press releases around Amkor. We’ve now had this press release that relates to Amazon transparency. So we feel very good about where we are from a go-to-market and from a pipeline perspective of integration of our platform into the large providers who are going to take it to the marketplace.
To step 2 is to make sure that we have the business development and the sales resources to then support those customers and to help them close the sales. So that’s where we are now. We’re seeing pipeline. We’re seeing opportunities develop and so we feel very comfortable with that. That’s on the authentication side. On the Precision Logistics side, I think we’ve talked about that earlier. And really, what we’re focused on for Precision Logistics from a pipeline perspective, heavily focused right now on understanding the proactive customer and the value proposition that they have. And really, we believe that our current pipeline is well below where it could be to drive more growth on the proactive side of the business. So we’re working hard to increase the pipeline on the proactive side.
As I say that, that ties back to our capital structure, we’re very focused on as opportunities unfold. And as I indicated, I believe that we have a company that is a tipping point type of company. And when the marketplace is fully ready and fully realizes the value that our service and our platform provides we need to have sufficient capital and resources to respond accordingly not to miss out. So we’re continually — if we found that we want to be able to evaluate if we find ourselves in a situation are — would we be better off buying 200,000 shares or hiring 3 salespeople? Would we be — which would provide the most shareholder value? So that’s how we’re looking at it. And right now, we have in our mind, there’s certain no-brainer prices that we would buy our shares, and we think that they just grossly miss the mark on what our real value is.
But outside of that, it’s more of a strategic rationalized looking at the multiple options for using our capital, what’s likely to give the best shareholder value.
Unidentified Analyst: Fair enough. Fair enough. Look, it’s not a crystal ball. You have to sort of [indiscernible] your way. Is it appropriate to think about EPS on the guidance basis, but on the range basis at this point? If we’re thinking about sort of double digits, so that would be anywhere from 2.5 to some higher number of incremental revenue at some — at the current sort of gross margin. Is that the right way to think about it through the share count? Is that the right way to think about like what overall?
Adam Stedham: You’re looking at — are you saying, because you want to — for 1-year modeling, 5-year modeling, what time frame you are…
Unidentified Analyst: I’m trying to think about actually for 2.5-year modeling actually — but I’m not — I don’t think it’s — if you’re at a tipping point, it happens when it happens over the course of the year. I don’t think anybody can be that level of clarity nobody really has. But I am trying to understand if you’re thinking about organic growth out for $50 million, you have to be at a certain range of steady state compounding Therefore, out 2 years, out 2.5 years, is this trading at some sort of discount to some range of expected EPS. So our 2 years, could we say that it’s an incremental $5 million and a 35% margin and therefore, it’s trading at x. I’m just trying to understand, how the part of what we’re talking about here is, and this isn’t directed to you at all.
