Good morning and welcome to Acorn Energy's First Quarter 2025 Conference Call. [Operator Instructions] As a reminder, today's conference is being recorded. Now, I will turn the conference to Tracy Clifford, CFO of Acorn Energy and COO of its own OmniMetrix operating subsidiary. Please go ahead.

Thank you operator, and thank you all for joining today's call. Let me first remind everyone that the following remarks as well as answers to questions may be forward-looking. These statements are subject to various risks and uncertainties. The operating and financial performance of the company in future periods is subject to general risks associated with potential disruptions to business operations and customer demand specific risks related to the company executing its operating plan, maintaining high customer renewal rates, growing its customer base as well as some changes in technology, the competitive landscape or in the financial or economic environment among other factors. Forward-looking statements are based on management's beliefs and assumptions using information and data currently available pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. There is no assurance that the company will achieve its targets. The company undertakes no obligation to revise or disclose revisions to such forward-looking statements made as of today to reflect future events or circumstances that occur after this call. A more thorough discussion of risks and uncertainties that may affect the company is included under risk factors in our 10-K available on sec.gov and on our website. Now, I'll turn the call over to Jan Loeb, CEO of Acorn and OmniMetrix for additional comments. Jan?

Thank you Tracy and thanks everyone for joining us today. I also want to thank members of the MicroCapClub and other investors that we were able to meet at the Planet MicroCap conference in Las Vegas, we greatly appreciate your support and interest in Acorn. I'm pleased to report continued progress in our first quarter as revenue rose 45% or $966,000 or $3.1 million contributing a $526,000 increase to operating income or 54% of the revenue increase. The rise of first quarter revenue was driven by a 78% increase in hardware due to our large contract with the cell phone provider. This performance confirms the efficiency and operating leverage of our business model in which approximately 50% of each incremental revenue dollar drops to operating income and EBITDA balance. In addition, despite a higher cost, our operating expenses decreased to 56% of revenue in Q1 2025 from 71% of revenue in Q1 2024. On the bottom line, Acorn's Q1 2025 EPS rose to $0.19 per share versus $0.03 in Q1 2024, an increase of over 600%, but it was below adjusted EPS of $0.31 per share in Q4 2024. For financial plan purposes, our net income is now reflected on a fully taxable basis. However, we do not pay federal income tax as our income is shielded from federal tax by NOLs. Our first quarter is typically a seasonally low revenue quarter for us, and we incurred some higher expenses from ordered tax work related to the partial release of our valuation allowance to record a portion of our deferred tax asset on the balance sheet as of December 31, 2024. These expenses equated to approximately $0.03 per share. So, on a capital basis, to the 2024 Q4 period for example, our Q1 EPS would have been $0.27 adding back…

Thanks, Jan. In addition to our earnings release, we also filed our 10-K this morning, and those are available online. I'll provide a brief review of Q1 financial and operating highlights, and then we'll take investor questions. Our Q1 2025 revenue rose 45% to [$3.098 billion] [ph] versus Q1 2024 with a 78% increase in hardware revenue and a 15% increase in monitoring revenue. The material cell phone provider contract contributed 876,000 related to TrueGuard hardware in Q1 2025 and was the primary revenue growth driver on the hardware side. Our gross profit grew 46%, in line with the revenue growing reflecting a gross margin of 75.1% in Q1 2025 versus 74.6% in Q1 2024. Total operating expenses increased 14% to [indiscernible] and Q1 2025 from [indiscernible] in Q1 2024, with higher SG&A and higher R&D expenses. The increase in SG&A included higher corporate audit and tax fees, as Jan mentioned, as well as increased expenses for personnel, sales commissions and software and technology expenses. Audit and tax fees included an increase of 67,000 related to the work performed to derive the partial release of the income tax valuation allowance against our deferred tax assets as of December 31, 2024. Acorn's strong results and outlook for ongoing profitability requires the release of valuation allowance against our deferred tax assets resulting in a [indiscernible] deferred income tax benefit recorded as of December 31, 2024, but the majority of that work and related professional fee expenses were incurred in Q1. On a percent of sales basis, Q1 2025 operating expenses actually decreased to 56% of total revenue from 71% in Q1 2024 as our top line grew more quickly than our expenses, reflecting the operating leverage in our model, as Jan previously discussed. Research and development expenses increased 22% in Q1 2025…

As there are no questions. I'll turn the conference back to Jan Loeb for closing remarks.

Well, I'm glad that we made our comments so in-depth that there are no questions, but we appreciate your support, and we're happy to speak with investors. You can arrange a call with us or ask questions to our IR team, whose information is listed in today's press release. As always, we thank you for your support and look forward to updating you on our progress in future calls. Thank you all very much.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.