Arrive AI (NASDAQ:ARAI) Q1 2026 Earnings Call

0:00 Good day and welcome to the Arrive AI Inc. Q1 twenty twenty six Earnings Call. At this time, all participants are in listen only mode. After the speakers' presentation, there will be a question and answer session. Please note this call is being recorded. I would like to turn the call over to Kylie Conway, Arrive AI Senior Communications. Please go ahead. Thank you, Michelle. And before we go any further, our CEO, Dan O'Toole, has something he'd like to recognize this morning. Hey, thanks, Kylie. Hey, everybody. Thanks for being here and listening. This is an exciting day for us. One year ago today, we actually made our public debut on the Mavvek ticker ARAI. It was the culmination of a huge journey that took us through a lot of twists and turns and it's something that I'll never forget my whole life. So I appreciate everyone that helped make that happen.

0:55 I ordered a chicken and egg a little bit earlier and I'm going to let you know which one comes first, but go ahead, Kylie, take it back. Dan, thank you and good morning everyone. Thank you for joining us today. With me on the call, of course, you just heard from him Dan O'Toole, Rabbi Eisch Chairman, CEO and Founder and Todd Pettmeyer, Chief Financial Officer. The rest of our leadership team is also here in the room to answer questions later in the call. The earnings press release issued this morning is available in the Investor Relations section of the company's website at arriveai.com. Before we begin, note that today's remarks may include forward looking statements regarding future financial results, operations and performance. These statements are not guarantees of future results and are subject to risks and uncertainties that could cause actual outcomes to differ materially.

1:42 We encourage investors to review the risk factors detailed in Arrive AI's SEC filings, which are also available on the company's website. Now I'll turn the call over to Arrive AI CEO, Dan O'Toole. Hey, everyone. Dan O'Toole here. Thank you for joining us today. As always, we appreciate you taking the time to be with us and follow our progress. Building Arrive AI continues to be an incredible journey. Like any company creating an entirely new infrastructure, the path is not always linear, but our vision remains clear and we continue executing against that vision with discipline and focus. One thing I want to emphasize before we begin is how we think about our progress as we continue to build the infrastructure and processes that will help us begin to ramp our commercial activities beginning later this year.

2:34 The same way an early stage pharmaceutical company's progress is evaluated by milestones, they achieve along their way to commercialization, development progress, validation points, regulatory steps, manufacturing readiness and commercialization preparation is the way we view the consistent progress we are making. What matters most right now for the company is whether we are continuing to hit our operational milestones that move us closer to scalable deployment and recurring revenue. And over the last thirty days, we believe we've made measurable progress in several important areas. Before we get into those updates, I also want to mention that we're continuing to experiment with innovative formats for our earnings calls.

3:20 The prepared remarks you're about to hear will be delivered using the AI generated versions of my voice and Todd Pepmeyer, Chief Financial Officer at Arrive AI. For us, this is more than a novelty. It reflects how we think about artificial intelligence as a practical tool that can improve efficiency, scalability, communication. The same philosophy that drives our broader platform and autonomous logistics network. After the prepared remarks conclude, Todd and I will return live to answer questions that were submitted ahead of this call. I'll also be joined by the rest of our leadership team: Chief Strategy Officer, Nirav Shah Chief Operating Officer, Mark Hamm and Chief Legal Counsel, John Richardson. Also, Todd will rejoin.

4:07 So with that, let's begin the prepared remarks. Thanks, everyone. Given it has only been about thirty days since our last update, today's call will focus primarily on our execution progress and operational milestones. And as I noted earlier on this call, we believe we've made meaningful progress in this short period of time. As I've said before, building a category defining company is not linear, but we continue executing deliberately. And we're seeing those efforts translate into stronger operational fundamentals across the business. But at Arrive AI, we believe our most meaningful metric of progress right now is not financial such as revenue or EPS.

4:53 It is MPQ or milestones per quarter. At this phase, our focus is on building the right infrastructure, validating deployments, strengthening our technology, expanding partnerships, and preparing for scalable recurring revenue opportunities. These milestones matter because they are what ultimately create the foundation for long term shareholder value. And when we look back since becoming a public company in May 2025, we believe we've accomplished a significant amount in a relatively short period of time. Since going public, we have strengthened and reorganized our leadership team, advanced our AP three platform, optimized our supply chain, brought software development in house, expanded development of our proprietary operating system, Arrive OS, advanced deployment and demonstration initiatives, added experienced leadership to our board, expanded strategic conversations across logistics and infrastructure sectors, and continued positioning Arrive AI as a foundational platform for autonomous logistics and intelligent delivery infrastructure.

6:04 We have also strengthened our patent portfolio to now 10 US utility patents. While we recognize we are still early in the commercialization cycle, we believe these operational milestones continue moving the company meaningfully forward. I'll walk through several recent important updates before turning it over to Todd. One of the most important developments since our last call has been progress within our supply chain and manufacturing operations. We've taken significant steps to optimize and stabilize AP3 production through a new manufacturing partnership in India. This has improved both our supply chain reliability and cost structure, giving us a more scalable and predictable manufacturing base moving forward, while also speeding up unit delivery.

6:54 This configuration represents what we believe is the finalized supply chain structure for the current AP3 platform as we prepare for our transition toward next generation hardware. Importantly, we remain on track for an improved AP3 release in July with broader availability expected beginning in October. We believe this increased availability is important because until now deployment capacity has naturally limited the pace at which we could onboard new customers and expand deployments. The July release is not a complete platform redesign. It is a meaningful refinement and enhancement of the existing AP three platform focused on reliability, deployment readiness, and customer scalability.

7:43 As availability expands later this year, we believe it positions us to accelerate customer deployments and move closer toward consistent and growing recurring revenue generation. At the same time, we continue progressing toward our next generation platform, internally referred to as APX. We expect to receive early APX prototypes in the coming development cycle, and this platform represents a major step forward in functionality, manufacturability, and long term scalability. While AP3 establishes the operational network foundation, APX is designed to support larger scale commercialization and broader deployment opportunities across autonomous logistics, healthcare, enterprise delivery, and smart infrastructure applications.

8:36 Another important development is the advancement of Arrive OS, the software layer that will help unify deployment management, monitoring, integrations, and future network functionality across the Arrive ecosystem. Much of this foundational work was completed during q one, and we expect phased rollout activity to begin during q three. This is an important strategic initiative as it creates a more scalable and cohesive operating environment across our intelligent delivery network. In addition, following our recent internal reorganization, we have now brought software development fully in house, which has already created meaningful operational efficiencies.

9:21 We have stripped out portions of our legacy software stack and replaced them with internally developed systems that are already improving performance and iteration speed on our current AP three units. Owning more of our software stack internally improves our ability to move faster, deploy updates more efficiently, and build a stronger long term technology foundation. To sum this up, we own and control all of our software that is being built in house. It's saving us money and time while keeping us in control of our success. This is exactly where we wanna be. We've also continued advancing plans for a digital demonstration initiative with the realistic target of conducting that demonstration in Texas later this year. This important milestone will provide customers, enterprise partners, municipalities, and logistics stakeholders with the opportunity to evaluate our platform operating in more realistic deployment conditions.

10:24 These demonstrations are critical because autonomous logistics infrastructure requires trust, validation, and operational proof points. As we continue demonstrating real world functionality, it strengthens both customer confidence and future deployment opportunities. From a governance standpoint, we recently held our first board meeting with Mike Fitz as a member of our board. Mike is a member of T Mobile's leadership team and brings invaluable experience in networks, connectivity, and large scale infrastructure operations to Arrive AI. His addition further strengthens what we believe is an experienced and highly engaged leadership group, and we are already benefiting from his strategic perspective and operational insight.

11:13 We continue to believe strong governance and experienced leadership will play an important role as we scale the business. While we remain careful about discussing initiatives prior to execution, we are encouraged by the level of engagement and interest we continue to see. Given the progress I've just highlighted, I am confident you will agree with me that the foundation we are building continues getting stronger quarter by quarter. With that, I'll turn it over to Todd Pepmeyer, Chief Financial Officer of Arrive AI. Thanks, Dan. Given the short period since our last update, there are a few major changes to report from a financial standpoint today. Our priorities remain consistent, disciplined capital allocation, infrastructure investment, deployment readiness, and operational scalability.

12:01 As we've said previously, Arrive AI is building a network driven business model. For the first quarter, our total revenue was $14,925 all of which was recurring subscription revenue from our deployed Arrive points. Our net loss for the first quarter was $6,400,000 compared to a loss of about $2,000,000 in the same quarter of 2025. The increase was primarily due to higher operating expenses and non cash items related to our convertible note facility. We ended the quarter with $5,700,000 in cash and $2,800,000 in short term investments on the balance sheet, primarily as a result of the January 2026 $10,000,000 draw from our existing credit facility. This significantly strengthens our balance sheet and provides a meaningful runway to continue executing our business plan and funding our growth initiatives.

12:52 Our quarterly cash burn rate of approximately $3,000,000 has been mostly driven by salary costs and R and D expenses as we've built out the team to support growth. We expect expenses to remain at or near this level in the short term before increasing modestly in the fourth quarter. We continue managing capital carefully while maintaining a focus on long term scalability. On a housekeeping note related to capital markets activity, in the days immediately following this call, we expect to file a shelf registration statement with the SEC as we are now eligible to do so. This filing is standard corporate practice for public companies and does not reflect any immediate financing plans. What it does reflect is the optionality that benefits the company. When the opportunity arises to capitalize Arrive AI on our own terms and at the lowest cost of capital, the shelf filing will position us to take advantage of that opportunity in the most efficient manner. Our capital strategy has not changed, our operating framework has not changed, and we remain focused on disciplined execution moving forward.

13:54 As an example of this discipline, earlier this week, we reached a standstill agreement with Streeterville Capital through the end of the year, which we believe represents an important step forward in strengthening Arrive AI's capital markets position. The standstill substantially reduces the volatility, which resulted from the previous routine conversion activity by the investor. This should provide the conditions for more natural price discovery and thus reduce a significant source of market uncertainty. Importantly, we accomplished this from a position of operational and balance sheet strength. We believe we have sufficient capital available to support our business plan through the standstill period under ordinary market conditions. At the same time, the structure of this recent agreement preserves flexibility for the orderly reduction of the remaining Streeterville balance during periods of significant market liquidity, which could further improve our capital structure over time.

14:48 Overall, we view this as a positive alignment between shareholder interests, market stability, and long term value creation for Arrive AI. Additional details for this standstill agreement will be noted in a Form eight ks we plan to file later today. Additional financial commentary and detailed results will be included in our filed earnings materials. With that, I'll turn it back to Dan. Thanks, Todd. To wrap up, we believe the last thirty days have demonstrated meaningful operational progress across several important areas of the business. We strengthened our supply chain, we improved execution internally, we advanced software infrastructure, we continued progressing deployment demonstrations, and we further positioned the company for future scalability.

15:34 We strengthened our first position patent portfolio. We added significant bandwidth to our world class team. And most importantly, we continue building the foundation required to support long term autonomous logistics infrastructure. Our focus remains straightforward. Execute the road map, expand deployments, and continue positioning Arrive AI to capture what we believe is a significant long term market opportunity. We appreciate your continued support and engagement. With that, Todd and I will now return live for q and a along with the rest of our team. Thank you. Our first question comes from James Kissner with Water Tower Research. Your line is open.

16:31 Hi, thanks for taking my questions. Hancock Health has been a very encouraging proof point. Can you just talk about your confidence about healthcare in general, like how repeatable a vertical for Arrive is that? Yeah, hey, thanks James. Dan O'Toole here, CEO. Appreciate that very much. We do highly value and appreciate the Hancock opportunity. It's been a great showcase for us not only within the hospital and how it's really helped our ROI as far as maintaining healthcare professionals dedicated to areas, keeping them in those areas and letting automation streamline a lot of things. But it's also afforded us an opportunity to bring several other groups to Hancock to showcase what we're doing there. And I can say that that opportunity is is growing.

17:26 We have a new identity, we've newly identified additional opportunities within Hancock that we're going be rolling out. Nirav Shah, our Chief Strategy Officer, do you want to add to that anyway? Go ahead. Yeah, thanks, Dan. I just wanted to kind of hone in on one point Dan made, that's about the labor. Dan had said about saving time and that pressure isn't going anywhere. Labor pressures are going to continue to grow, in fact, and nursing shortages will be there. So we're taking that basic burden off of the nurses is massive and cuts across the entire country, frankly. James, do you have anything else, James, you want to ask? Yeah, sure. Actually, got a couple of quick ones if I can sneak them in. Let me just talk about the near term opportunity. I'm wondering how much it depends on drone approvals versus workflows that can scale today with you with ground robots, couriers and kind of internal campus logistics.

18:23 Hey, Mark, you want take that one? Mark Ham, our COO. Yeah. While there are still some hurdles on the drone front, there are areas of the country that are very active with drones, like Texas, for instance. So we are targeting them in time. With regard to kind of robots and traditional logistics couriers and now kind of DoorDash services, things like that. Of course, that's all very active now. You can see that on hundreds of campuses. And, yeah, we're we're actively pursuing that. Okay. What else you got? All right. So you guys, I mean, talked about kind of international opportunities. Just how are you kind of balancing pursuit of international versus the opportunity to go deeper in The US? Like, how are you prioritizing that?

19:16 Yeah, we being a low to no revenue company as we are really building a brand new platform in an emerging technology market. What's really important to us is deploying human resources as efficiently and cost effectively as we can for support of those opportunities, and also just capital overall. So we're kind of doing a home first approach. We're trying to iterate and develop as close to home just for all those reasons plus all for us the ROI right now is the learnings. So we're able to have those learnings be very linear and pull them back and redeploy new things that we're learning and getting those into our next gen product. So that's kind of our strategy. I mean, the reality is there's lesser restrictions in a lot of the parts of the world besides The US and it would be easy to iterate in those areas.

20:10 But when you put that against the backdrop of all those costs and human resource costs, it just really makes sense to iterate here at home as close as possible. And that's what we're really focused on. That's helpful. Last one for me. Just, I apologize if you addressed this in the opening comments because I had to hop on another call. Just talk about the cash runway, like how to kind of think about that, especially given I assume that some of the stuff you're working on has some cash requirements like the AP3 availability and software development, all that. Yep, I'm going to have Todd, our CFO, jump in on that. But I want to preface one thing that we're really excited about. Today, we announced a standstill agreement with Streaterville, we figure that we feel like we're really well positioned from a capital standpoint, to not have that headwind of draws coming off of that line.

21:01 I'm going hand this over to Todd. Yeah, thanks, Tim. James, as we noted earlier, our cash burn is about 3,000,000 a quarter right now. We expect it to remain at that level for the next couple of quarters. It may tick up modestly as we go into the fourth quarter and increase unit deliveries and things like that. We ended the quarter with about $8,500,000 of cash and short term investments on the balance sheet, which is something like eight months of runway at the end of the quarter if do nothing else. As we said earlier, we are going to file a shelf registration statement and access capital at much lower cost of capital here at the right opportunity. So we do have that available to us as well.

21:58 And finally, with regard to the Streaterville, we did request a standstill agreement. They complied. We think that will significantly reduce the volatility. You know, their routine conversions were at their choosing not ours. So they've agreed to stand still and vice versa. We don't really need to take more cash in the very short term. We think we have runway to get much further out in the year. And I would say we do still have 19,000,000 capital left on the facility with Streeterville if we choose to take it. So with all that said, we feel like we're in a pretty good place runway wise to execute the business plan in front of us.

22:50 That's great color. Congratulations on getting that done. I'll pass the mic. Thank you. Thank you. Our next question comes from Jack Vander Aard with Maxim Group. Your line is open. Hi, how's it going? This is Jack Codereck calling in for Jack Vander Aard. Thanks for taking my questions. First kind of clarification question quick. On the revenue front, it was relatively small, but any revenue is positive. Can you parse that out? Is that entirely Hancock Health? And then can you just give us kind of a general update on all of the different sort of pilot programs that are progressing? Where do you expect to see kind of revenue start to build?

23:37 Yeah. Hey, thanks Jack for being here. I appreciate it. I'm going to hand this to Todd, but I'd just like to preface this by saying, you know, we are very early, we are building the platform, we are building the technology, we are not focused on some de minimis revenue that becomes the guidepost of our valuation. The value in what we're building is the product and all the software layers and all the proprietary AI items that we're engineering and developing right here in our building. And if you could contrast that against the small revenue, you'd be really shocked at where we are and how fast we're moving. And we will flip a switch at some point and you'll see this in a big issue way. But I want to hand that over to Todd, our CFO and Todd can further answer that. Thanks for the question, Jack. So yeah, predominantly more than 90% of the reported revenue was from the deployment at Hancock Health, not unlike what we reported in Q4 as well. So they remain the vast preponderance of our revenue stream at the moment.

24:41 We did have one other small revenue deployment that was active in the quarter, but de minimis compared to the Hancock opportunity. One other thing I want to come back with just to kind of put a bow on this is, yeah, being an early company in an early emerging market, what's important is not nickel and diming opportunities to the point where you extinguish them. For us, the ROI is the opportunity more than the capital at this point or the revenue. So we're focused on that. We're not trying to extinguish opportunities by being very giddy about how can we nickel and dime this thing. To us, the cost of doing business is being in these opportunities. And I can say that we are having a very robust cycle of inbound contacts wanting to explore how to work together, doing deployments, scheduling opportunities, doing presentations.

25:41 It's a very frothy environment for us right now as the market starts to realize that scalability of autonomous delivery and pickup cannot happen without the infrastructure and that's us. Okay, that's helpful. And then I had another question, kind of in that same ilk. What do you think catalyzes that kind of commercialization progress? Is it time through these pilots where people realize how useful it is? You mentioned kind of the OpEx expected to stay roughly flat to near this level. But given that headcount increased, do you expect the headcount to drive things forward? Or do you have any plans to kind of scale sales and marketing? How should we think about that?

26:29 Yeah, I'm going to throw this over to Mark, but I do want to say one thing. The market is because there's a lot of alignment happening, drone delivery, robotic delivery, Arrive AI, all these things are converging. So it's really coming to a boiling point, which is going to be huge for everybody. But I can say there's other deployment at handcuff that we have, we've had dozens of groups come in and see that. And that is what's creating excitement in people becoming aware of this. So as that continues to happen, we continue to roll out, you know, we see a day when the biggest challenge we have is filling opportunities and not getting ahead of ourselves in that regard. I'll let Mark finish the thought here. Go to Mark. Yeah, what I would add is our intention is to continue learning in the present mode at the present levels and then as we stated by end of next year we're pursuing deploying the next generation.

27:30 And as we build up to that, you also heard that we've announced a digital demo that we're exposing strategic partners to that we believe is a foundation for engaging them in preparing for that next gen. And it's really that next gen where we're targeting larger deployments with larger customers. And that, I believe, is the step function that kinda you're referring to. I think that's the real, trigger point. Okay. That's super helpful. I'll hop back in the queue. Thanks, guys. Thank you. Thank you. That concludes our analyst questions. Now I'll pass the call back over to Kylie.

28:17 Thank you, Michelle. We did receive a number of thoughtful pre submitted investor questions ahead of today's call, many centered around similar themes. So we've grouped them into broader topics to make the discussion as efficient and informative as possible. We'd like to thank Benjamin, Eli, Kelly, John, Raul, Betty, Yamin, Christopher, Matthew, Ryan, Shelley, Tim, and also thanks to James and Jack for dialing in. So first, kind of piggybacking off of some of James' questions. We received several regarding Arrive AI's international initiatives, including updates on Antigua and SkyAir pilot program, the expected path toward monetization from those deployments, broader international expansion opportunities, including healthcare markets overseas, and the company's global intellectual property position and patent protection.

29:04 That's a lot. Thanks for asking your questions and for future calls, just so you guys know, we do have a proprietary questionnaire that we put out to all of our shareholders and you're welcome and encouraged to submit your questions so we can get to all of them. I'm to let Nirav start on that one and I think John might have Yeah, heard about that thanks Dan. So I'll start with Antigua. So right now the unit economics of DV loss operations are are just not there because of the regulations. So for an example, in The US with part one zero seven, you need to have visual observers, and that just drives up the cost of drone operations. With part one zero eight, we see that dropping, and that would reduce the cost internationally of beyond visual and ascent type operations and autonomy. And so once that happens I think unit economics in places like Antigua will make a lot more sense and so stay tuned on that. We're monitoring that very closely.

30:00 The second question was around SkyAir. So stay tuned, there's a lot happening there. The CEO of SkyAir was in Indianapolis about two weeks ago for some critical conversations and discussions. Stay tuned, like I said, we'll be announcing something hopefully here in the not too distant future. I'll turn it over to John around the international patents. Thanks Neera. Before we started commercially here in The US we secured our position. Dan mentioned already that we've got 10 issued patents. We've actually now with our influx of some excellent engineering staff we've got over 14 in the pipeline. So IP in The US continues where it's been and it's growing very rapidly with the new personnel.

30:47 Similar to that we have prepared ourselves internationally and you say okay how do you do that? Where do you go from here? We looked around and used the World Bank GNP took the top countries from that and looked at their GNP and looked at other things if we had contacts there, we had interest from marketeers, potential licensers, also contacts with drone and robotic people. All those places that we've got and that's over 20, we've got 23 countries now around the world. And in those places we've got we've now got 77 international patents in the pending stage.

31:35 Of those 77 we've had over 10 issued or allowed and the rest of them are still the pending stage going through examination. But the important part I'd say is with the commercialization we're prepared with our protection ahead of time. Right, John. Thanks. Thanks Nirav. We also received a number of questions related to commercialization progress and operational scale including current deployment, recurring revenue expectations, production timelines, commercialization milestones investors should be watching over the next twelve to eighteen months, and the broader path towards scaling operations and achieving cash flow breakeven. I'll ask Mark to handle this one.

32:22 Yeah, thanks Dan. Yes, we know everybody wants revenue and we wanted to and towards that end we're executing a milestone based process framework to innovate and produce more revenue. So the way we think of it is innovation equals invention plus realization plus commercialization. So right now, we're kind of in that realization phase where we're building next gen AI enabled product. We're building an AP network and a new Arrive Point platform to go with all of that. So last quarter, we actually slowed down to incorporate some of the latest learnings from the AP3 in the field from Hancock and others, and also to improve the supply chain of the AP3, as well as to pull forward some next gen technologies we've already developed for what was referred to earlier as APX.

33:26 And so all of that is improving. What we plan to release in July is our AP3, which is a significant set of improvements and will allow us to do some further deployments and learning. So the AP3 will also be available in higher quantities in Q4 with the supply chain improvement. So beyond that, as stated earlier, we're looking in the second half of this year to be employing our digital demo with some strategics as we build towards larger next gen deployments and delivering next gen arrive points by the end of next year.

34:14 So those are the major milestones I'd say for the next eighteen months. Thanks, Mark. Another topic investors asked about adoption, including opportunities with homebuilders, integrating Arrive AI technology into new housing developments, and the company's long term vision for residential delivery infrastructure. Thanks, Kylie. This is Dan. I'm going to answer that. We're looking at every aspect of delivery and deployment for Arrive Points. The total addressable market in The US is 170,000,000 addresses and the cool thing is that number grows by 4,000 new addresses every day. When you talk about rolling out into new subdivisions and things like that, that is something that is on our radar. Stubbing infrastructure in for new developments is a great and easy way to do it. And so we see that as a great growth opportunity.

35:09 Also 80% of the market is residential, 20% is commercial. So the residential aspect is probably the largest opportunity ultimately for us. So we are looking at all these areas. We're developing some really optically and aesthetically really modern, I would say, apples esque looking products that are going to really modernize the streets of America and the world. So stay tuned for that, but obviously we're looking at all these opportunities and it's an exciting moment I can tell you that. Thanks Dan. We also saw several questions around strategic partnerships and infrastructure opportunities, including potential licensing arrangements with major logistics providers, collaboration opportunities with biotech and medical device companies, and how the platform could support medication and grocery delivery for elderly or disabled population.

36:06 Mark, why don't you take that one? Yeah, so we're excited and our investors are thinking along the same lines we are about the future of all those opportunities. I think I guess it was right around the time we were going public we did talk about some of the assisted living and those types of opportunities. And of course, in due course down the road, we will definitely be looking at international and licensing. But again, when you're delivering next gen product, a network, a platform, the AI, and then all the associated certifications and compliance that goes with that.

36:58 We believe the big opportunity here is here for quite a while. And we will not be limited on opportunity. And so we'll get to those items as it makes sense to continue the momentum. Thank you, Mark. And finally, we received questions related to capital strategy, including the company's cash runway approach to dilution and future financing, as well as questions surrounding treasury management activities referenced on previous calls. Todd, CFO. Thanks, Dan. Yeah, as we noted earlier, think it was Jack's question, at the end of the quarter, we had liquidity on hand, including the cash and the liquid investments to fund us for the next eight months or so.

37:44 We're also putting in place an at the market facility, which will give us the opportunity to raise additional capital at a much lower overall cost of capital. Together, we believe that gives us enough dry powder to execute our plan into 2027 and beyond. You have to remember we're developing and deploying a whole new technology platform in an emerging market, and this business plan will require new capital over the next several years to achieve the scale we're talking about. My job is to make sure we do that in the most efficient way for the shareholders. In the meantime, we do have a treasury management program that puts a portion of our idle cash to work to earn favorable returns until we need it.

38:29 We evaluate that risk tolerance periodically to ensure we're being good stewards of our assets and we may adjust that treasury allocation from time to time. Todd, thank you and I'll turn it to Dan for final closing remarks. Yeah, thanks Kylie. Thanks everyone for being here. Thanks to my team, everyone that invested in this company or is considering that this is all of our company. I just want to reiterate that today marks a huge milestone in this company's evolution. We were marking our one year anniversary to the day of us going public on the NASDAQ. That was a North Star goal that we had for a long time and we accomplished it. And if you loved us, as we went through that journey, you should really love us now because as we move forward, we've never been more well positioned than we are at this moment. With the acceleration in the market around us, with the announcement of the Streaterville standstill agreement today, I see that as a big breathing opportunity for our stock to breathe. And I think that's important.

39:30 We're moving fast. We're up to nearly 50 employees at this point, who are well capitalized, and we've got cutting edge technology that the market is going to be anxious to take receipt of. So thanks for being with us. Thanks for all of your questions. And I'll hand it back to our operator, Michelle. Thank you for your participation. This does conclude the program. You may now disconnect. Everyone, have a great day.