Good afternoon, and welcome, everyone. Thank you for joining us today for our 2013 third quarter conference call to discuss Intellicheck Mobilisa's results for the quarter ended September 30, 2013, and to discuss other business developments. In a moment, I will turn the call over to the company's CEO, Dr. Nelson Ludlow, to lead today's call and introduce the members of the Intellicheck Mobilisa's management team who will be participating in today's conference call. However, before I do that, I will take a few moments to read the forward-looking statement. Certain statements in this conference call constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. When used in this conference call, words such as will, believe, expect, anticipate, encouraged and similar expressions as they relate to the company or its management, as well as assumptions made by and information currently available to the company's management, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and beliefs about future events. As with any projection or forecast, they are inherently susceptible to uncertainty and changes in circumstances, and the company is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of such changes, new information, subsequent events or otherwise. Additional information concerning forward-looking statements is contained under the heading of Risk Factors listed from time to time in the company's filings with the Securities and Exchange Commission. Management will use the defined financial term adjusted EBITDA in today's call. Please refer to the company's press release issued this morning for further definition of, and context, for the use of this term. With that behind us now, I'd like to introduce to you Dr. Nelson Ludlow, Intellicheck Mobilisa's Chief Executive Officer. Nelson, please go ahead.

Thank you, Sarah. I'll do glasses for this since I'm not able to read as easily as I used to. Well good afternoon, everyone. Thank you for being here. This is a very good opportunity to speak to you all because we did a combination -- we just completed a shareholders' meeting, and we have a few shareholders here, as well as shareholders on the line. And so this is kind of a unique opportunity to answer questions, both here in New York City at our shareholders' meeting but as well as on the earnings call. So thank you for being available. I'd like to introduce a few people. Our Chairman, Admiral Mike Malone is on the call. Directors Guy Smith, General Buck Bedard, Mrs. Bonnie Ludlow are also here, and are also available on the call. Our management team, Bill White, our Chief Financial Officer, and Russ Embry, if you want to raise your hand for the people here, is our Chief Technology Officer. And Russ has some cards for the people here in the room, so this is the advantage of attending the earnings call in person so you can got a free download of barZapp on your Android phone or your iPhone. So he'll hand some of those cards out. Also for the people that are in the room, we're going to do a demonstration of a couple of our new products here up on the screen. So sorry for the listeners that are online, but we'll be able to send you some information if you request it from our Investor Relations, but we're going to demonstrate those products live here as well. Also I would like to introduce Dr. Dian Grisel, she's the leader of DGI, our IR and PR firm; and also Christal McElroy; and…

I have it.

Okay. Well, Terry has it, so he can show you that we have the capability on an iPhone or on the tablet, to not only scan for a barZapp, but you can do it if you were a cop. And it'll actually do an FBI check. The military's looking at doing this. Law enforcement across the country can do it. Again you don't have to go back to your car or call it in. You're actually able to do a bona fide FBI check right there on the spot. So bottom line, we have a completely new focus on mobile applications. We're trying to take where people are chained to the desktop and move that computing where the action occurs. Where its mobile. Where its wireless. Where you're actually meeting the customer. And that's what we're doing. We had a major breakthrough this year, technology-wise, if you didn't track on it specifically. But those cell phones don't have barcode readers in them. It's just a camera. So we're able to convert that camera to be able to read that barcode and to be able to process it with our software. The other area that we're going to be announcing a product shortly is Mexican driver's licenses. A Mexican driver's license, since we do U.S. and Canadian right now, we already have many of the Mexican driver's license into a beta product that we've been using at a couple of locations. Mexico is a major business area. It's part of NAFTA. It's not one that we should forget. And also, there are U.S -- people living in the United States that are Mexicans that also have IDs that want to open bank accounts or want to do activities in the United States, and they have the same requirements. I want to…

Thank you, Nelson. Good day to our shareholders, guests and listeners. I'd like to discuss some of the financial information that was contained in our press release for the third quarter ending September 30, 2013, which we released today. We also released our quarterly report on Form 10-Q and filed that with the SEC this morning. Revenues for our third quarter ending September 30, 2013, were $2.579 million compared to $2.12 million for the previous year. Identity systems revenues increased to $1.641 million compared to $1.572 million. And wireless revenues increased to $938,000 compared to $551,000 last year. Revenues for our third quarter ending September 30, 2013, were up $858,000, as Nelson previously said, compared to our second quarter ended -- compared to our second quarter ending June 30. Identity system revenues increased $316,000, and wireless revenues increased $542,000. Booked orders for the 3 months ending September 30 were approximately $1.54 million compared to $1.35 million in the third quarter of 2012. Gross profits were $1.781 million for the quarter or 69% of revenues compared to $1.57 million or 74% of revenues for the third quarter of 2012. The decrease in percentage is primarily due to lower margins on the 2013 wireless revenue, which was equipment-heavy and made up the large portions of the quarterly revenues. Operating expenses, which consist of selling, general and administrative, and research and development expenses, decreased $183,000 to $1.766 million for the 3 months ending September 30, 2013, from $1.948 million for the 3 months ending last year. Adjusted EBITDA for the quarter was $287,000 compared to a negative $102,000 in the quarter ending -- last year. The company posted a net income of $16,000 for the 3 months ending September 30, 2013, compared to a net loss of $381,000 for the quarter ending September…

Thanks, Bill. Let me just mention 1 thing for our listeners before we go into questions. We did have a shareholders' meeting, and just to make it clear, the 5 directors of General Buck Bedard, Ms. Bonnie Ludlow, myself, Guy Smith and Admiral Mike Malone were elected as directors. The second item on the proxy was that EisnerAmper, LLP, was voted as our independent auditor for the company. There was an advisory vote on compensation for the named executive officers, which was approved. And the frequency of the future advisory votes for executive compensation was approved on a 3-year cycle. So those were the items. In summary, I'm excited about the future of the company. It's been a lot of work. We're not out of the woods yet. We have more work to do. We're going to keep up innovation. We're going to see the innovation in mobile applications particularly. You're going to see more of those. And we're rebuilding in the government with TWIC in military. So after today's question session, we'll show a demonstration of some of our products. Terry Thiele, who is our Director of Government Sales, who I don't think I formally announced previously, traveled here today to show you some of those products. And then Russ will hand out some of our gift cards with pass codes so that you can download the barZapp and try it out yourself. At this point, we'll take some questions. We'll do our best to answer the questions that people have. Please clearly state your name and what organization you're with and who you are asking the question to. Also try to limit your questions to 1 or 2 so that others in the queue can ask questions. If there's time, you can ask questions on the second round. Also be aware that we're going to be taking both questions from here in the meeting room and from listeners. So you'll just have to kind of bear with us a little bit while we do that. And so at this time, how about let's begin with a question from the audience first, and then we'll go to the operator on line. So if there a question here in the audience, and if you want, give them the microphone.

My name is John Bendall of JBC Partners. It's a family hedge fund. Nelson, most of all of you know how critical I have been on the company as a shareholder for 13 -- I think this is my 13th Annual Meeting. At least I've been around 13 years. When I say critical, I have had the greatest respect, and I have told you so, for your mathematical ability and what you have done. And I have voiced that. Doesn't mean we have to always agree. You said something today that I thought was encouraging, and that is that -- maybe at least I thought I heard you right, that investors would have, going forward, easier or better time in making some estimates or perhaps it was you that the company could make an estimate. Example being yesterday, with the press release you had with -- I think it said 400 stores that you were trying out this demand. I take it also you're not going to reveal who those 400 stores are or what the entity was that you're trying them in. Will there be a point that those kinds of things will be revealed so one can get some color and be able to do some sort of extrapolation to have an idea of what that revenue would be? And after you said, it would be -- it's going to be easier for us going forward to make some sort of a forecast? I know that's a long-winded question, but I guess how do we start to, say, well, if they got X and Y, that could result in A and B as for sales?

Okay. Thanks, John, and thanks for the question. SaaS will make it easier for us to be able to predict revenue, and it will be a more steady stream, and we're going to get to a point where we will be shifting from essentially new work to more reoccurring revenue. And as that grows, you'll be able to -- we will be able to predict better and be able to pass that information onto you. Right now, truthfully, I could have a big order come in on December 30 versus January 2, and it will shift our revenue. There's no doubt about it. It just will. And so it's hard to predict what's going to happen on that. So let's talk about, well, who is it? And retailers particularly say, "Hey, I don't want you to say who I am because I'm doing something innovative." But after a while, after the technology is out there, guess what? We can talk about it. I mentioned several today. AT&T, Verizon, Motel 6. All of those ones we are talking about. This is a retailer that said, "We want to try some new innovative product with you, but we don't want you to tell our competitors who it is." I said I'd rather have the business than the press release. It's not easy, and if we can get -- but we did both. We did the press release, we just didn't get to name who it is. I should also say that some of these locations -- we said 400 locations just to be clear -- some of the stores have multiple locations, and so it's not technically 400 stores, but 400 different locations are trying this out.

I was looking at this booklet, I guess, that you and Dian put together, and it's rather impressive. And I thought to myself, the thickness of this book, I don't know if a lot of these are the same, but it is press. I wish there was a way that every time one of these was out, there was a way on your website or click for shareholders that duplicates, but that's okay. It's press. But you might be able to say, Chicago Times Page 12. It just shows that the media is still out there looking at it. I mean, I figured out that if stock went up $0.01 for every one of these releases, we'd be at around $4.50 right now.

Right on. Okay.

It's something to think about, but I know there are a lot of duplicates. But it's a lot more than I had thought. I mean, we get what everybody gets from you, and they're good. But there are some pretty impressive publications in here.

Well, maybe we could put more information on our website. We'll try to think about that as we're shifting now into social media and as the SEC has now allowed that to be an acceptable form of contact. We can push into that direction as well. The real thing is you got to do press all the time, everywhere. It is hard. You have to just keep doing it and keep doing it and doing it, and finally, the word starts getting out. Anytime companies are successful, whether it's a person, it's an actor to -- some new product, often they say, "Well, that was amazing. That was overnight that success happened." And that's never the case. The reality is, as you keep plugging away, plugging away, and the press was there. And if you did search, it was there. And for the smart investors they'll find out, "Hey, this is a cool product. Hey, there is press out there." Is it a household name yet? No. But the fact that all of the Motel 6s now have a product that has branded right on top of it, which has been a focus of mine, I want branding out there. Warren Buffett says he buys stuff that he can understand. He likes Coca-Cola. He likes train sets, so he bought Burlington Northern. Well that's his own story. The thing here is we want branding. When somebody checks into a hotel, I want to go, "Hey that was kind of cool what you just did there. Who makes that?" The problem with software is, you can't really see who makes it because it's in the air. It's wireless. It's, I don't know [ph], did something. I don't know who makes it. Well if I asked that lady in Verizon, she would go, I don't know. I mean -- so we need to do branding. That's why the hardware devices, every opportunity we can get to put our branding on it in one of these locations, we're going to do it. Because we are the driver's license scanning company.

I was hoping to perhaps see 1 downstairs today that maybe you would have snuck one in where the guy looking at our license, taking it out, going through that drill. I mean, it seems like a hell of a lot easier just to run that drill.

One of our partners, EasyLobby, which makes a lot of lobby softwares for scanning driver's licenses, does use our software. It's not a gigantic market. We, here, in New York City live that, and frankly, it's because you went through 9/11. The rest of the company -- country is a little different and don't always check IDs for going into buildings. In Seattle, they'll just say -- walk in with your Starbucks. They are not going to check. So it's -- but in the places it is, we do that with some of our partners. It's not a huge market right now.

John, we got a tracker on your car. We knew you were coming.

[indiscernible] I noticed both tires were flat by the time I got here, so I have a hint.

Well, how about we'll take a call, operator? How about we'll take a call from the line.

Our first question from the line comes from Amy Norflus from Neuberger Berman.

Can you give us an update as to what recurring revenue is? And is it possible to quantify anything between AT&T or Verizon or Motel 6, or the contract back in January that you mentioned about a retailer? Or -- I mean, can we put any numbers behind all of these great products that we have -- that we're selling?

Okay. Yes, Amy, thanks for the call. Let me try to do that. I got to be a little careful because if I start -- then the other hotel that we're talking to right now goes, "Good, now I know what the price is and I want 10% less." So -- but let me give you about the AT&T. We did a press release several years ago. AT&T, as we said before, we've sold retail licenses for approximately $0.75 million. That was approximately the deal for them in that ballpark, with a reoccurring revenue stream, so when every year, about 20% when updates occur for state driver's licenses. Again they have that model. And we also sold them approximately $3 million to $4 million worth of hardware over a 3-year period of time of barcode scanners into the AT&T store. Motel 6 is a fixed reader. We sell our fixed reader with hardware at about $8,000 a point. But let me tell you about our new software, SaaS model, which we're shifting several of these places to, is $99 a point per year. So Software-as-a-Service is a $99 per location. If you have 3 in your front lobby, then that would be $300. If you have 1, then it's $100. If you're a big store and you have 40 different locations, then it's $4,000. The cool part is you don't have to worry about updating your software and worrying about that new Indiana driver's license, or is it okay to scan it in Oregon. We take care of all of that for you.

So what's the SaaS model, what does the customer have to buy?

With the SaaS model, it's very cool. It's called the "bring your own device" model. So whatever they got as long they can take a picture and do a barcode scan, we can use our software to do it. Now there might be a couple of technical things behind it, but by and large, that's the model we do. We did something so cool now as a new product that we're talking to some hotels with. The clerk behind the counter can actually scan it with their own cell phone and have it fill it out for you. Now I don't know if that'll be acceptable or not, but that's how loose this model can be. More and more people want to bring their own device, and maybe they already have their own barcode scanners. But software is going to be the future. It's actually kind of scary to think about all these barcode scanner companies that sell hardware. Well if you can just read a barcode with a camera and a cell phone, why are you a barcode scanner hardware manufacturer? I mean it's kind of like investing -- being in an airline reservation industry. You can kind of predict somewhat what's going down and what's coming up. Software is going to be more king, and hardware is going to be less and less. So it's pretty much a "bring your own device model" with our customers, $99 a year for our software.

Can you update us on the Motorola? Anything that's going on with Motorola from some of the prior calls?

Motorola is partner of ours. We worked with them to -- since they are a barcode scanner. And we have worked with them to resell some of our software. It's been a very modest rollout. We did a project called Tire Kingdom, and that's about it. It is not moved out. We're still trying to work with them to make that a bigger and better relationship. And we think they see the value in that, and we do, too. But that's still a work in progress. Okay. How about Dave Richardson [ph]? We're going to take a call, operator, here from in the audience here.

[indiscernible] I'm a retail broker. I have a lot of people that own the intelligent stock. I've owned it for -- talking about 15, 20 years when the stock traded at $20 or $8 a share. We've been there forever. Things have changed around talking about that. But I have a lot of customers who own this stock. And I say, hey, these guys are starting to turn things around. They're doing a good job. And last quarter, we sat in here, and you brought up something that they're still pointing to and saying, I know management didn't say they were going to buy stock for themselves, or the insider said they were going to buy stock for themselves. They didn't say that exactly, but they got permission to buy stock for themselves. So we've been looking ever since. Here we are again, another quarter, and my people are saying, "You show me that management cares." I don't care if they buy their own. It's only 100 of shares. But a couple of thousand here, just 2 or 3 people, they care about their own company. It's not that much, about an $80 stock. We're talking about spending a couple of hundred dollars. Even that would show people that management cares. And I think that would be really important for any of you guys, any of you directors, or insiders, or the guys that own all the stock, show my people, hey, these guys now care. We've had a good quarter. Things sound good. We were there the other day. "Guys, listen to me. I think you've got a chance at getting some appreciation with the stock. Every other stock seems to have been going up." We need that impetus from you guys.

Okay. That's a good comment. Let me just say a couple of things about it. As you know, but I'm sure most of the callers know, the Board of Directors and executive officers are in blackout periods from time-to-time. So I couldn't have bought shares yesterday and said, "I know we're going to announce profitability tomorrow." Dian would say, "Don't do that. That's a bad idea." So would the SEC. So we're in certain blackout periods. It's actually a relatively small window, probably a little smaller than you may think for the Board.

Let's use that window just once to show if anyone of you guys cares.

Okay. And the other is, the reason that we announced that we were allowed to do that is we did have an SEC question last year, and so we wanted to make sure we got things right. We talked to counsel, and we tried to do it prudently. We tried to do it reasonably. And we tried to do it and communicate what's going on so someone wouldn't make that assumption and say, well wait a minute, they didn't buy, maybe that's a bad sign. I wouldn't jump to that conclusion, in particularly for in the past because if that time was when we announced in that 8-K, counsel advised us, let's be cautious here, let's let things settle down a little bit. Although, and let me just repeat that when the SEC did ask us for information, it involved no current employees, no directors, no officers, current people over our company. But to be safe and prudent, that was the direction we took.

I tried to do a follow-on directly. I don't know exactly what my right is in this statement. I think I bought 100,000 [ph] shares this year [indiscernible]

General Bedard spoke, and he mentioned that he had filed a Form 4 it -- I mean, he didn't mention form, but there is a Form 4 to indicate that he exercised approximately 150,000 options and bought a lot of shares this year.

Maybe that's [indiscernible]. Well, I know what you're saying. I'm talking about a new -- but that's not really a new purchase.

That's money into the company.

Yes, that is money into the company, but it doesn't show people that, as I say, [indiscernible] they want to see that you guys are here enough to say, okay...

Well, let me address the question, directly. Yes, we do care. I care very much. Let me just add 1 quick thing. It's also, this year, I deferred some salary, and the Board of Directors also deferred salary. They had more Board meetings this year. Our IR firm dealt with more things this year. Our auditors dealt with more things this year. We're turning this company around. It wasn't less work. It was more work. And we did sell -- and even put personal gain aside to make it happen. So yes, we care. I care very much about this company as you know, I've invested in it pretty heavily. Essentially all my life savings are invested in it. I spend every waking minute worrying about and trying to do the best for this company, so I care. But Mr. Smith, you wanted to...

[indiscernible] the blackout period in some of the last year [indiscernible].

Some guy out there buys your stock, what would be smaller stocks, so let's be involved. He doesn't see that. I can say anything I want to, and you're going to say, "Show me. Just show me that..."

[indiscernible]

A couple of great examples, which is just being [indiscernible] somebody couldn't find anything unless [indiscernible].

Admiral Malone.

[indiscernible] just the same file. It's a form -- the file, they bring out the form, and it's filed every time -- it's the director part of the share.

Correct me if I'm wrong. I think what David is -- and I'm speaking for David what he means [indiscernible] I would much rather have money going into the company [indiscernible] options local broker [indiscernible] and buy 10,000 shares [indiscernible] but I think that's -- I can sleep probably well [indiscernible]. I don't have a problem...

Noah [ph], look, thank you for the question. And it's good because I want to kill that rumor because Mr. Smith has routinely bought shares prior to when we were in a blackout. General Bedard did exercise. Admiral Malone did buy. My wife and I are both directors. We own 40-some percent of the company. So no one has sold over in the last year. The last person that did is no longer with the company. So I don't know how else to say it, other than look at the facts, and yes, we care, and people have been investing. How about we take...

It has been difficult to lift the blackout period because the directors have been so involved in the recovery of the company that we know the numbers. And so while we came very close to lifting the blackout period several months ago, we just know too much. That said, we intend to lift the blackout period in 48 hours until the end of November.

That's why he's the admiral. So...

Okay. How about we take a question from the call please or from online?

The next question from the phone line is from Joe Bernini [ph], a private investor.

2 things. The current topic that just came up regarding the purchase of the stock, I do believe that General Bedard had an option to not purchase those. They were basically at market value, and he paid $0.46 for them. So that shows his interest in the company. If he was in a blackout period, and he still took the stock and purchased it, that's a positive note to make. On May 6, on June 11, when he made those transactions or when they were posted. So I look at that as a very positive, and I do understand the Board of Directors being heavily involved in management in a small company. You have knowledge of deals that are closing and potential deals, and you cross a very thin line. Of course, I like to see everyone purchase it. But I look at that as being very, very positive when he exercised those. So congratulations to him, first of all. Above and beyond that, 2 things. There was an outstanding issue, not an issue, a -- less likely did not -- a revenue that you took a hit on of about $400,000 or $500,000 or maybe close to $600,000. Is that still less likely to not or has it proceeded in any form? I think you took it in the prior quarter. The quarter -- this quarter of last year.

Right, Joe. Okay, first of all, Joe, thanks for your good questions and your comments about General Bedard. I appreciate that. Yes, we took an adjustment in Q4. What Joe Bernini is asking is we did some buoy work last year. And there were some charges that we didn't feel that the government was, definitely, likely to pay. I'll look to the CFO and others, but if it's less likely than not that we believe that it's to be paid, we want to notify you. We want you to know. You have a right as shareholders to know, and so we did that. We removed that revenue from Q4 as an adjustment. And during this year, we've recovered a small part of that, not from the Navy, but from the contractor that we were subcontracted to. With some help of our legal team, they've demonstrated that some other work that we did that we thought that we could get and we've captured that for this year, and that was in this -- part of this, a small part of a couple $100,000 of revenue for this Q. Also we did some additional work in the buoys, taking them to a different condition. Wrapping up the contract. Doing some things, which was new work that we claimed to the Navy for about $138,000, and the Navy paid for that as well. We are still pursuing legally to the Navy to demonstrate that we did complete that work last year and that some of it, we should be paid for. We have a claim for $291,000 right now with the Navy to do that. We are not changing our position from less likely than not, to more likely than not. We still don't know. And so -- but it's sitting with the Navy right now. So other than that, we're in a kind of a wait and hold. We may have an answer as early as of December. But we're working with the federal government, so it could be as late as Q1.

And just to add to that. Obviously as stockholders, we look at that as icing on the cake because if you already took the hit on that, we understand. The other item I wanted to bring up was this turning point in the company seems to be an increased revenue stream during a really awkward time in the government. You picked up government contracts during a time when the government was reaching a threshold. They shut the government down, and you still were able to pick up contracts. There were a quarter that I never expected that you would. So I think this opens an opportunity now going forward, as you said, you had several dozen that inquired after you have these recent locations. Do you see significant upside potential?

I do. So much so that I spent last week all at military bases. I was at Parris Island, Fort Leonard Wood, Missouri, at Fort Polk, Louisiana, in Washington, D.C. area. The reason that I've been visiting these military bases was that was something that we were successful with when we were Mobilisa. Something we were successful with when we first merged the 2 companies. And then if you look at the public press releases, it kind of dwindled. We had a major change in our customer support. That's noted at all the military bases. They are very pleased with our new customer support 24/7 help desk. Some of the ex-military people that we have there that are visiting these bases. But what I'm excited about with the bases that I have visited, and my favorite book, Crossing the Chasm, these are the innovators. These are the ones that are starting the new ideas. So we did the FIPS-201 compliance new idea. There's Parris Island. We're building the new Fugitive Finder devices and rolling those out. Sure enough, they ended up at Fort Polk. We have these new 2 TWIC readers, and we're at 2 new ports for this. So all -- it's not all of a sudden, but we're pushing with these guys. Fort Polk, Louisiana, is really the innovator in the Army. They're using wireless. No other army base is. They're using these new devices. They're checking smart cards. They're doing all kinds of new innovative things. That's exactly the guy I want to spend my energy with, so that other bases can look to that one and say, I want to do exactly what that guy is doing at that location. I'm noticing that's happening. Our new innovative products are going to the innovative people in the military. I think the military is -- in next Q3 and Q2 of next year, I'm hoping for some sales there. I mean you can never guarantee with the government, but they have the funding. What they're saying is we're not really worried about the cost exactly. What we're really worried about, is it certified? Is it a warranty? Is it safe to use? Does it pass all the tests? Is it going to help me get my job done, and is it going to save me money? They're very jazzed about these things. So I think we've had a major turnaround in the government. If you looked at our numbers in the government, they were going down. Every quarter they were going down. The last couple of years, they were going down. And so I'm with you, Joe. This was -- I don't want to say a surprise, but a pleasant confirmation that, yes, we are turning that around. I think I spend a lot of energy in these last couple of quarters in the government area, and those certifications that our company did led directly to that. They have to buy something that's certified.

And Joe, General Bedard here. I'm just going to make a follow-on comment to you...

General it's hard to hear on this phone.

Can you give him the microphone. Joe, hang on, just 2 seconds here. We're going to give the microphone to General Bedard. He has a general's voice, so you might hear him anyway, but...

Joe, good afternoon. Thank you for your comment about purchasing stock. I'd like you to meet with my CPA when it comes tax time as well.

I think you're going to have a big problem because you have a lot of gains.

The comment I'd like to make about why the military is so strong after our products right now. One of their biggest concerns is what happens with the data that you collect, and is it properly protected, and can we ensure our audience and our military and our military families that it's going to be protected? And we do that very, very well. And you're going to see that come up time and time again, especially with now the information that's being requested under Obamacare for health products, et cetera. Securing the information that you gather every time you do a scan is a critical aspect of our product.

Thank you, General. Joe, did you have any other comments?

Just keep doing what you're doing right now. We're very happy with the progress for this quarter.

Thank you, Joe. Let's take 1 more call online, and then we have time for 2 more calls. Okay, so is there any other online questions?

Yes, we have another from the line of Ernie Copanegro [ph], a private investor.

I wanted to ask you a question about the biometric and the ability to put all this stuff together on the TWICs card. Are we trying to explore that even further to monetize that into anything potentially bigger than what we're doing now in other applications or other resources? Because there's so many folks that are saying that the bar reader -- I mean, they're saying the same thing for the last 10 years that the technology has failed and that everything is going to be fingerprints, matrix and eye retina matrix, et cetera, et cetera. How do we fit into that scheme?

Okay. Thank you, Ernie, for the comment upfront, and thanks for the question. Yes, the TWIC part, I'm going to hold up a TWIC card for the audience here. In here, fingerprints from the holder. There's also a smart chip. There's also a proximity card. There's an RFID that radiates. There's, on the back, a barcode, a magnetic stripe. Homeland Security has held it up as the world's smartest card. And when I briefed the Homeland Security committee on the Senate side, I said, yes, but it's the dumbest card without a reader. And I think they agree with that. So what are we doing with this biometric card? Here's what's cool about it. Not only did we get certified by Homeland Security, made us do these 140 tests. We call our products, and we'll show it here, TWIC Plus. Nobody else does this, so if I sell a TWIC reader, it's an open format, government, other companies could do this, too, if they spent the time, money and energy to get certified. They build a TWIC reader and you could validate this card. Oh, next truck driver shows up with a driver's license. I'm sorry, go away. They don't want to do that. That costs them money, time and energy to do that. We can. So we call it TWIC Plus. We read a TWIC card. We read a driver's license. We read a military ID. We read retired military IDs. Here's what Fort Polk and other locations want to start doing. There's another company, it's a competitor of ours, that makes their own personal card. They do a background check, and they use their own private card. The Department of Defense IG had a report just about a month ago looking at what the Navy was doing on…

No. I just -- I guess, what do we have to do to get $30 million, $40 million, $50 million in revenue and get our stock back up. That's just -- I'd like to hear what your color is on that and where you think the next area of growth is going to be. Obviously the barZapp is very interesting, but you said that you're getting more press on it that you are going to get a lot of sales. Am I correct there? And where do you think you can really, really start to shoot out some serious revenue from?

Okay. You're right about barZapp. But I've said that last quarter, and I want to repeat that, I don't expect that to be a huge revenue maker. I view it as an indirect revenue generator. It shows other people the capability we can do to the TWIC sellers and people. Let me add, I think the Software as a Service is going to be a revenue generator. The increase in government is going to be one, and we're going to keep increasing sales force and get out to meet with more retailers. We're a small company and so when we hire more salespeople, we literally meet with customers that haven't heard of our product before. It's not they don't like the product. They haven't heard of it before. So we're going to keep doing more of that. Let me take a question from Alan [ph]?

I came up in the elevator with Dian, and one of the questions I've had on my mind, I posed to her because she's right there with public relations. And the question is, how are we doing with institutional investors and isn't it difficult as the Dickens to try to get us a serious institutional investor involved with our stock when it sells at under $0.50 a share?

Okay. It is difficult. But the way out of this is to increase revenue, increase sales and keep doing what we're doing, get the share price up, and then they will be more invested. I've kind of -- I don't know if I'm picking the right words, but throttled back a little bit on meeting with investors and doing roadshows, and meeting with new investors over the last year. Why? Because I wanted to rebuild the company. Well Bill and I are spending time this week with several investors and other groups. The time is now to start telling the story. The problem is when we first take over, and you say, hey, I'm going to do something, it's all talk. And you can talk all you want, but they'll say, "Well, I know what I'd say. Okay, well I'll see. I'll wait a few quarters and see what you're going to do. Are you really going to make your numbers? How do I know you're going to turn anything around?" So we needed to put our heads down, work hard and put a few points on the board before we could go out and talk. So that's what we did, but the IR portion of this is very critical, and now the time is right to do that. Okay. And we'll close with Mr. Bendle [ph]. You got the last questions, sir.

I hear what you're saying about you're going to wait and see how the next quarter, the next quarter. When I saw the numbers come out this morning, at 7 0 1 [ph] like it was yesterday, I was very pleased and happy to see that turnaround because I really don't care. I look at companies like this on the bottom line. I look at the top [indiscernible] sales are often growing. What -- when the SEC did, whatever they did to look at, I sometimes wonder, here we've traded well over 0.25 million shares today, and the stock was up about I think 20-some percent to $0.54. Not a lot of money even if you buy 1 million shares. And given what you've put out today, if I were, a, fund that could buy stocks under $5, I'd want a few million. And here it's come all the way back to $0.47 from $0.55. It almost seems as though, everyday that not a natural seller, and what I mean by that, that is just not mom-and-pop waking up at 3:00 and deciding to sell their 508 share -- it looks the way it trades and the way that I see it, algorithm-wise or whatever you want to call it, that its almost manipulated for someone that doesn't want it up. Now the fact, that's not correct 100%, but to see 0.25 million shares trade up as strong as it does, and then to come down after this meeting, which was a good meeting, an optimistic meeting going forward, they would have been better off selling this morning at $0.55 than they would have at $0.47. So at some point maybe the Board should say, "You know, we're going to look into this." Why this happens to the trade after the market closes, which is legal, but I noticed the other day, a 18,000, 20,000 shares print went on down $0.01 or $0.02 after 4:00. And yet it was calculated in my P&L that day after 4:00, which normally doesn't happen so. Anyway...

Okay. Well, I can't comment on a specific trade because, one, I don't even know what it was, but even still just typically that's not what we do. But some of that logic is based on, if you were a day-trader, yes, maybe it would have made sense to trade at the numbers you talked about. I'm looking at it in a more long term and also, my job is to work on revenue, work on sales and try to get the volume of the shares up and just keep doing what we're doing. If we get that going, some of the other problems take care of themselves. Well, I appreciate all of your questions. For those who want to -- we'll take a small break, and those that would like to see a demonstration, Terry Thiele is an outstanding demonstrator of our products, and he will show you. So anyway, thank you, again, for the call.