David Moradi: Sure. I’m not sure there’s going to be a large revenue effect in the near term with the DOJ efforts, but I expect over the longer term, call it, one to two years, you’re going to see a meaningful ramp with state and local governments. And I think the DOJ is thinking about the private sector as well. I wouldn’t be surprised if they take some action there, which could be very, very meaningful. With EU, they’re on track for 2025. It’s pretty comprehensive. It covers many websites, except for really the smallest ones. It’s a very large TAM here. We estimate the TAM of around $3 billion.
George Suttona: And more specifically, how do you go after seeing local governments today? And how might that change — and on the EU side, how are you positioned to go after opportunities there?
David Moradi: Yes, just blocking and tackling with the revenue or and selling — setting up a sales office over in London, probably first quarter of next year is what we’re thinking. But it’s just really blocking tackling. We have the product now. So just about going out and getting the business.
George Suttona: And lastly, to be clear on the EU when the compliance date is June of ’25. My assumption is not everyone is completing that the end of June of ’25. Can you just walk through how you anticipate seeing people begin to comply?
David Moradi: Like everything in life, some will do it a year early. Some will do it a little bit late. It’s all over the Board is what we saw with AODA in Canada. So, it’s really just depends on the Company themselves.
Operator: Our next question comes from Scott Buck from H.C. Wainright. Please proceed.
Scott Buck: Just a quick one, guys. The contingent consideration, I saw that move to current assets. Is that paid in cash? Or do you have the option to pay that in stock for shares?
Kelly Georgevich: The purchase agreement has a cash payment. It’s contingent based on 2022 and 2023 performance of the BoIA but it is a cash payment. And the second contingent payments is like a Q2, 2024 time period.
Scott Buck: Great. I appreciate it. That’s it for me, guys.
Operator: At this time, this concludes our question-and-answer session. I’d now like to turn the call back over to Mr. Moradi for closing remarks.
David Moradi: Thank you for joining us today. As always, I want to thank our employees, partners and investors for their continued support. We look forward to updating you on our next call.
Operator: Before we conclude today’s call, I would like to remind everyone that a recording of today’s call will be available for replay via a link available in the Investors section of the Company’s website. Thank you for joining us today for AudioEye’s second quarter 2023 earnings conference call. You may now disconnect.
