MIND Technology, Inc. (NASDAQ:MIND) Q4 2023 Earnings Call Transcript

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Appreciate it, Ross.Ross Taylor Thank you.Operator We have a follow-up from Tyson Bauer with KC Capital. Please proceed.Tyson Bauer I promise to make it quick. Just going through your presentation, couple different slides mentioning your demonstrations for the U.S. Navy and various capacities. Under what nameplate is that occurring? And because I doubt if it’s directly Klein with the U.S. Navy, you’re using some partners or class one contractors, those things in that regard. And is your technology being used in isolation or as an add-on to existing vehicles that are being in use by the U.S. Navy?Rob Capps Okay. So I think you’re referring to our Sea Serpent, our passive array demonstration we did with Coastal Trident last summer. That actually is, we have an entity called MIND Maritime Acoustics, which you’ve not heard much about because it’s not been very active.

So we actually do that business through that entity for some regulatory and export control reasons. So it is not Klein, it’s not Seamap, it’s something a bit different.That demonstration was done directly with the Navy, with some partners in that company called MarTech supplied the vessel that we towed the streamer that the array from, BAE pretty airspace provided a target vehicle, vehicle that replicates or acts like it’s a submarine. So that’s the target we were looking. So that was the demonstration.So, we were forefront in that, but we didn’t have partners in it. We’re seeing what I think is a great deal of interest from a variety of parties for that technology, not just for a towed passive streamer, but also for fixed installations on the seabed.

I think our technology, which is taking our SeaLink streamer technology and modifying that to work in this environment, which we call Sea Serpent really fits well for fixed installations on the sea floor. And we’ve actually been running a test on the sea floor off the coast of New Hampshire for a year and a half now.So we have quite a bit of data from that. So that’s a pretty interesting area for us. One, you should not see any revenue from yet. But I think we’ll start to see some contribution again as we go into this year.Tyson Bauer Okay. And is that a situation where the technology, as long as it gets approved, then any kind of vehicle manufacturer, whether it be Huntington Ingalls or it’s somebody else you are more or less specked in where they then come to you to include it in their overall contracts?Rob Capps Yes.

So it’s not quite like that Tyson. I mean, we certainly are selling through typically some other integrator. So it is not like the Navy’s going to say, okay, on every vehicle you need to use Sea Serpent. It’s going to be application specific, but that’s essentially a big, big market for us.Tyson Bauer Okay. But it’s not necessarily the U.S. Navy buying directly from you. It is that they are more or less putting in whatever they do that. Okay. It has to have what you’re providing.Rob Capps That’s right. So it is a two-pronged sales effort. You got to work with the integrator and the vehicle manufacturer, but you have to have – the Navy is the end user eventually or whoever the commercial customer might be as well because there are applications for commercial installations, offshore platforms, harbor facilities, things like that.

So it’s not just military.Tyson Bauer Okay. And these typical contracts are ones that we’ve seen other defense people make announcements on where you can have an overall fairly healthy size of the contract with kind of a base amount that they can utilize those contract terms to expand throughout a given time period. Correct?Rob Capps Yes. Sometimes you’ll see it in that structure.Tyson Bauer Okay. All right. That sounds wonderful. Thank you.Rob Capps Okay.Operator This concludes the Q&A portion of the call. I will now hand the call back to Rob Capps for final remarks.Rob Capps Just want to thank everyone for joining us today and look forward to talking to you again at the end of our first quarter later this year. Thanks very much.Operator Thank you.

Ladies and gentlemen, thank you for your participation. This does conclude today’s teleconference. You may disconnect your lines and have a wonderful day.

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