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Good afternoon. And welcome to mCloud Technologies Fiscal 2019 Fourth Quarter and First Quarter 2020 Earnings Conference Call.Today, the company will discuss the audited results for the fourth quarter ended December 31, 2019, and the unaudited results for the first quarter ended March 31, 2020. Joining the call today from mCloud is Russ McMeekin, Chief Executive Officer; and Chantal Schutz, Chief Financial Officer.Before we proceed further, please note that the remarks made on this conference call may contain forward-looking statements about mCloud Technologies' current and future plans, expectations, intentions, results, levels of activity, performance, goals or achievements or any other future events or developments. Forward-looking statements are based on information currently available to management and on investments and assumptions based on factors that management believes are appropriate and responsible in the circumstances. However, there can be no assurance that such estimates and assumptions will prove to be correct. Many factors cause actual results, levels of activity, performance, achievements, future events or developments to differ materially from those expressed or implied by the forward-looking statements.As a result, mCloud Technologies cannot guarantee that any forward-looking statements will materialize, and you are cautioned not to place any undue reliance on forward-looking statements. Except as may be required by law, mCloud Technologies has no obligation to update or revise any forward-looking statements as a result of new information, future events or otherwise. For additional information on these assumptions and risks, please consult the cautionary statement regarding forward-looking information contained in the company's most recent MD&A available on sedar.com.At this time, I will turn the call over to Russ McMeekin, Chief Executive Officer of mCloud. Please go ahead, sir.
Thank you. And good afternoon, everyone. We're doing this call from multiple locations and in 2 countries, and we're going to be using slides. I think you -- those of you who have dialed in our webcast, you'll see the slide. So we're adding that to our quarterly call methodology now. And also, in addition to myself and Chantal, we'll have Barry speak to 2 slides in this presentation. So we have a full picture of what's going on.So we reported this and so we go to Slide #3, FY 2019 highlights. Over 2018, we grew the company tenfold. So that's significant growth, combination of organic and acquired growth. We exited the year with a $12 million run rate of AssetCare recurring revenues. That's derived by 41,088 connected assets.In 2019, we did 2 very transformative transactions. Agnity Global was formed, the foundation at AssetCare for AssetCare Mobile. And now this post-COVID era we're in, we're seeing a lot of activity around Connected Workers in multiple industries. That's all made possible because of the Agnity transaction.We did the Autopro transaction in 2019. We're at the table with a lot of major oil and gas players who want our technology deployed to remote locations, not just in Canada but around the world. That's made possible because of this Autopro transaction, which was very transformational.Operational enhancements. We've got a great bench at the front office, some great salespeople at the back office, great people in finance and reporting. And that puts us in a really great position for enhancing our capital market position, both in Canada, moving to the Toronto Stock Exchange. We're well underway there as well as with the NASDAQ. We're also well underway there.Next slide. Q4 2019, a few highlights. For the quarter, we did $10 million. 30% of that revenue was from AssetCare solutions. 30% of that every year in the fourth quarter, you will see a pretty robust licensing that's primarily from Agnity mobile platform and our NGRAIN 3D technology and precision analytics technology. And then 40% of it came from project services in the fourth quarter, adding up to $10 million. Gross margin for the fourth quarter was 63%, and that's due to the strong contribution from both AssetCare Solutions and our licensing business in the fourth quarter.Next slide. In Q1, we saw $6.6 million, again, strong gross margins in the first quarter. The AssetCare solutions contributed 60% of the revenues, only 5% from licensing. So as you see early in the year, we see very light on licensing. Very heavy. We saw run rates -- our ARR was up 130% year-on-year. Run rate is about $16 million of AssetCare recurring revenue. And we were light on project services from Autopro. Obviously, in Alberta with COVID-19, we're very challenged to being able to go to site and so on. We expect to see also a light second quarter in projects, but AssetCare picks up the momentum here, which drives recurring revenue. It drives big, beautiful gross margins, long-term contracts and very sticky contracts.Also in the quarter, we closed a $13.3 million special warrant financing. And we just, before this call, announced an additional CAD 4 million of a strategic investor, a family office in Europe that is very keenly interested in the growth of the company in AI and connected technology, also saw the opportunity as prior to a NASDAQ uplist as participating in a high-growth with great multiple expansion as we move to the NASDAQ.Next slide. I'll turn this over to Barry to take us through the next couple of slides, Barry, over to you.
Thanks, Russ, and good afternoon, good evening, everyone. I'd just like to turn our attention to what mCloud has done in response to COVID-19 and the decline in oil prices. I think it's a good illustration of the versatility of our technology because we've been able to apply AssetCare to help many businesses deal with the reality that they're now in.So if we take a look at our Connected Building segment as a good example, we had success in February and March, helping businesses apply our energy savings AI to put restaurant and retail brands into what we called energy hibernation. And what that effectively does, it allowed us to help these restaurant and retail owners reduce their energy costs for operators at 15 major brands by up to 80%. And now as these businesses are turning their attention to reopening, we've turned our own attention to helping businesses reopen their doors by giving them the kind of capabilities that are going to let them reassure their customers and employees that their buildings are safe to be in.So there's been a lot of scientific studies showing that indoor air quality and improving indoor air quality is one of the simplest and most effective ways curbing the risk of infection of viruses like COVID-19. And so throughout the care, we're helping these businesses bring clean air through proper ventilation and a partnership with SecureAire, an air filtration provider, that let us join forces that we can -- that way we can actively drive airborne particles to an electrostatic field that effectively kill these viruses.Next slide, please. Sorry, one -- let's take this slide. In our Connected Industry segment, we also had kind of a major uptick in the demand for the remote connectivity that AssetCare provides. Especially in many of these kind of heavy industry sites, oil and gas companies and process companies are looking for ways to continue operations when they can't quite get people on the ground.So our mobile capabilities, the things that we're delivering on smart glasses provided by RealWear, for instance, are allowing subject matter experts to work with field personnel on asset maintenance issues even if they might be thousands of miles away. And our 3D Digital Twin capabilities, some of which you can see here on the slide, are letting teams of people collaborate on asset problems using large-scale 3D models of those assets and helping them solve those problems in a matter of hours rather than waiting for people to come back on-site and have those problems take place over the course of days or weeks.So next slide, please. So for those of you who are kind of looking at our latest MD&A, you'll see that there's a section that describes some detailed research we undertook this past quarter. What we wanted to do is we wanted to reliably quantify the full size of the mCloud market opportunity. And that's what you see here on this slide. It's a rundown of mCloud serviceable obtainable market, or SOM. And what the obtainable market tells us is that if we just took the directly and immediately connectible assets that mCloud could reach today in the local geographies where we have specific named sales leaders with a defined sales quota, mCloud is playing to win in a $24 billion market space. That whole market is made up of almost 24 million connected assets. Approximately 2 million connectible mobile workers and opportunities to create a little over 300,000 3D Digital Twins.And so if you look at the 20 defined local markets that mCloud is addressing, those are really markets across North America, Europe, the Middle East, China and Southeast Asia. Our SOM shows us that we can directly target about 7.3 million commercial buildings, so restaurants, mid-sized retail, long-term and elder care facilities as well as about 35,000 heavy industry sites. So locations like oil and gas facilities, liquefied natural gas and floating processing storage and offloading sites, or FPSOs.The bottom line is that we're well positioned to achieve scale in a very large market. And when you look at that, combined with the average monthly recurring revenues that we see today per connected asset, we've really just scratched the surface of what mCloud is going to be able to achieve at its full market potential.Next slide, please. Over to you, Chantal.
Thank you, Barry, and thank you, Russ, and thank you to everyone who's joined us on the call today. It actually marks the year that I've been with mCloud, and I have to say that the financial statements paint an excellent picture of all the exciting things that we've undertaken in the last year. And I certainly could have never imagined that it would have been this fun and this exciting. So thank you all for being here.On this slide, what we're looking at is our non-GAAP adjusted EBITDA. So we've taken the new guidance in 52-112, the non-GAAP disclosure guidance. And what we've done is we've added back certain items that you see on our -- the face of our income statement as well as some salaries, wages and professional services and consulting fees to arrive at what we feel is a very fair presentation of our operational EBITDA.Can we go to the next slide, please? Just a couple of comments on our statement of financial position at March 31. As I mentioned, it's been a very exciting year here at mCloud. We've had quite a lot of acquisitions, quite a lot of financing. Our March 31 statement of financial position on the asset side is demonstrating that we've closed a very significant warrant financing. We've been successful in closing the acquisition of CSA. We have seen some slowdown in collections as it relates to the COVID-19 closures of offices and primarily Alberta, where the processing of those receivables is quite manual still, and those companies have not had the opportunity to be as quick with their processing of payments.We've used about $4 million in uplisting fees, working capital for AirFusion and some other M&A activities, including completing CSA as well as going through a due diligence exercise with BuildingIQ. We did advance $0.5 million of an anticipated $1.5 million of working capital to them. And through the course of our due diligence, we were able to ascertain fairly early on that some of the information we had been given wasn't accurate and their working capital needs were quite a lot more substantial than what they first explained to us. So we have filed a lawsuit with them in the Delaware court, and we do anticipate that we will be able to recover those funds.Can you go to the next slide, please? On this page, just a little bit more of our statement of financial position at March 31. As I mentioned, we did close our $13 million warrant financing.I think that's it for me, and I'll hand things back over to Russ.
Thanks, Chantal. Accelerating our forward-looking growth here, we gave a guidance here of $70 million to $72 million and that assumes the following things that we're tracking to. Obviously, connecting 70,000 connected assets quarter-by-quarter, we must continue, and we will continue that connection trajectory. And Barry walked you through the various vectors we have do that. In addition to that, we'll be adding Digital Twins. So there'll be about $8 million to $10 million coming from things like 3D Digital Twins and Connected Workers that we didn't have before as well as we're seeing some contract activity in the Middle East, Southeast Asia, that we're adding to our fleet or our opportunity.So our second half assumes 70,000 connected assets, 3D Digital Twin kicking in and some of the international regions that we're focused on. And again, all of these are high-margin and they drive AssetCare recurring revenues. So there of the quality that we're looking for to achieve this $70 million to $72 million of projection that we have.Also, we're working, as we mentioned already, very actively to list to the NASDAQ and uplist to the TSX main board. We've got all of the requisite efforts done, documentation and so on. So now that we filed today, that's the focus of the team to get that past the goal line. Next slide. So in summary here, despite COVID-19, big growth. Q1, we saw nice asset connections despite -- most of that was done all remotely. We've become pretty clever on how to do things remotely. As Barry mentioned, in fact, some of our customers have in their hand headsets as we navigate them through, doing their own onboarding with us, guiding them with our own headsets. The technology we've developed with AssetCare Mobile is quite advanced, in fact, the advanced of any users of RealWear in the world. So we're seeing a lot of people who've procured RealWear hardware now coming to us saying, we want to do what these other people do, and they're in markets we wouldn't have never thought of pursuing.So despite COVID-19, we're still pushing forward on finding ways of getting assets connected. Once that lifts, we have a pent-up demand of installations that will occur, connecting assets all over the place, Alberta being one key area. Texas is another area. Middle East, we had someone actually went to the Kingdom and got stranded there because of COVID and was not allowed to leave the Kingdom, was there at Aramco. Fortunately, recently he's now back. But that yielded a huge opportunity for us. Same in Southeast Asia, in Malaysia and so on.So these things are driving our enthusiasm for strong growth in the second half. And that strong growth by -- as we achieve these $20 million, $25 million quarters, that drives cash flow positive. So everyone's asking the question, when do you get to cash flow positive? Quite obvious. When you start generating that kind of recurring revenue -- Chantal has walked you through the details of the kinds of expenses we had to get to where we are to get these exchanges done, get these acquisitions done. These things are not recurring. These are not things we do all the time. As they go away and as the recurring revenue builds, we build a nice, profitable cash flowing business.So now over to the next slide, Slide 13. So the bottom line, AssetCare is at the right place and at the right time. We couldn't -- from a tailwind point of view here with getting things remotely connected, things are actually quite exciting on that front. To do that, however, you need talent. And we have over 150 highly talented people around the world. We all were -- developed our business practices around being remote using Zoom and things of that nature. So we haven't missed a beat. We're very deep users of technology. We're leaders in technology. So that's put us in a very exciting position worldwide. So despite some of the constraints that we have today or we've seen in the first quarter, and we'll continue probably to see for a few more weeks, we're very bullish about the second half of 2020.And we're going to turn it over for questions now.
[Operator Instructions] And your first question comes from Kevin Krishnaratne with Eight Capital.
A question for you. On Q1, when looking at AssetCare on its own quarter-over-quarter, it looks like a really nice bump there in the ARPU. I mean you clearly had a very nice strong net add quarter, but I'm curious to know what sort of led to the ARPU increase. Are you -- is there -- are you getting a higher level of processes in the quarter relative to prior quarter? Was there some sort of maybe pricing has been coming off legacy price? Can you just talk about some of the drivers that you saw in Q1?
Yes. No, we announced, remember, in the fourth quarter that we had installed a bunch of oil and gas assets. They're $250 per asset when new. So the blend moved very quickly when one asset is 5x the other asset in contribution, right? So what you're seeing is that's the phenomenon of the rev rec. So for example, at the end of March, it's when we did a lot of these new connected buildings. So you're not going to see their impact in Q1 as much as you start seeing the pickup of those in Q2. But conversely, we talked about a lot of stuff going on with the oil and gas operations in Alberta. You started seeing that impact to the ARPU in Q1.
Great. And so -- I mean this is the next question more onto the guidance. You did indicate that during Q1, that the -- you saw substantial backlog start to develop. I'm assuming that's related more -- is that related more to the remote worker, the oil and the heavy industry? Or were you seeing something more in the buildings? And if you can provide any color sort of on where you see the mix of 30,000 net adds coming from -- in 2020. I know you provided some guidance before at the end of last year. I'm wondering if anything changed there with regards to the mix of that.
So let's take the easy one. Connected Workers is not in that additional count. So that's additional revenues. And as they become more additive in terms of number of connected people, we're going to have a new metric we will add. So that makes that one easy. It's not in the 30,000. Numerically, it's mainly buildings. However, dollar-wise, because of the ARPU value of a connected oil and gas and wind turbines, you don't need many to have material impact to revenue. So the blend numerically in terms of connected assets is primarily the buildings in the methods that Barry just described to you. But dollar-wise, it's going to be pretty well split amongst them because the dollar impact of oil and gas and the dollar impact of Digital Twins is pretty significant when they kick in. So...
Got it. Okay. Another one for you. I mean I'm fairly excited to hear -- I've chatted with Barry as well with regards to some of the initiatives in QSR and larger restaurants with air quality and refrigeration. And certainly, going back a year when the mCloud story was more on -- still continue to be dominated by energy efficiency and peak power usage, I think broadening off of the offering to include some of these other items is quite intriguing. So I'm wondering, though, how you think about the sales cycle, the type of sales reps that you've got, sort of channel strategy that you've got with TELUS. I mean a lot of things that I'm asking there, but it doesn't -- it does seem like you've got quite a more compelling bundle. I'm wondering if that requires a different type of sales guy, a different type of sales cycle process. Anything you can comment there would be very helpful.
Well, first of all, guys and girls, we have a combination of both.
Guys and girls. Sorry, Chantal.
And I'll let Barry add to that because that's a very exciting part. The talent that he brought on at the frontline in business development and their backgrounds from Trane and Carrier, I'll let Barry address that, but great question, and I'm looking forward to Barry's answer. So go ahead, Barry.
Yes. Thanks, Russ, and thanks, Kevin, for the question. We've assembled a pretty killer team of all these folks, men and women who've really been sales leaders at all of the traditional kind of BMS companies across the board. So places like Trane, as Russ mentioned, as well as GE and Honeywell and so forth. All these folks who have been involved in the trenches and understand the whole business of building management from the top-down are now part of the mCloud team.And so Kevin, just to maybe pick up your question specifically about the sales cycle and how we get to market, especially given the new additions, what I think is really exciting about that is that the value prop is really easy for the customer to understand. Especially in light of COVID-19, it's really, really easy for customers to understand how important it is to bolster the health and safety of their employees and their customers. And so what's really involved in the sales cycle is helping them understand how AssetCare fits into the picture of these buildings and spaces that we want to connect to as well as how the business model that mCloud brings. So completely based on this commercial Software-as-a-Service style approach, that sets us apart from these heavy CapEx retrofit, sell traditional investments that are very common in the building industry today.So from that perspective, it's easy for customers to understand the value. And what we really need to do, especially right now, is help customers understand that the buying decision is really, really easy. So it doesn't really affect our sales cycle and then perhaps making it easier for us to get out in front of customers because now they're not just talking about energy efficiency. It's energy efficiency and the way that energy efficiency is also going to make your buildings healthier and safer for others.
Okay. That's very helpful. Maybe one last question for the gal on the line. Just with regards to guidance. You've previously given us guidance on normalized net income for the year, I think, when you last reported. I'm wondering if you're providing any guidance on profitability now.
The guidance that we provided is in the adjusted EBITDA. So we're following the guidance that is in 52-112, and we've revised that to reflect adjusted EBITDA.
Sorry. So $70 million to $72 million of revenue? And what's the guidance for annual EBITDA?
Yes. We haven't given that yet. We will provide -- we have -- we just adopted those adjusted EBITDA standards. And so before we run off and give out numbers, we want to make sure they comply with all the things we've adopted. So TBD is on the adjusted EBITDA. In the same format that we use here, using the same methodology, we owe you guys a range of EBITDA for the year.It may take a bit. But let's say, by the -- let's let a bunch of things settle: COVID-19 installations, timing of a bunch of things, uplisting expenses, all that good stuff. And then we'll get that -- we know that we have that on the to-do list, for sure.
And the good news, Kevin, is that's now set in stone and it will be consistent quarter-over-quarter.
Your next question comes from Steven Li with Raymond James.
I want to focus a bit more on the balance sheet. So Russ, this year, it sure looks like it's going to be very back-end loaded and Q4 heavy. Does that mean cash flow remains negative in Q2 and Q3 before turning in Q4?
That's a fair assumption, yes.
Okay. And the $4 million you raised today, is that sufficient to tide you over to Q4?
Yes, it is. We have -- we're going to start collecting receivables from what's going on. So assuming people start paying us, and we -- I think we're starting to see that, working capital should be okay. I mean we always are looking at doing transactions and deals. There may be others this summer. But if we do nothing else and we just keep operating, that should take us -- that will take us to Q4, yes.
Okay. Great. And also, can you give us an update on the term loan in terms of any covenant waivers discussion you might be having?
Chantal, go ahead, please.
Sure. So we did receive waivers up until June of this year, and we are -- we have a fairly good -- or not fairly good, a very good relationship with our lender. We're actually in the process of looking at redesigning what the covenants are and how we look at the company as a whole. So I have very positive feedback, and I have a very positive relationship with them. I don't anticipate that it will be a problem getting waivers in the future, if that's what's needed, while we work out what the new -- sort of what the new framework looks like.As everyone, I'm sure, can tell based on Russ's presentation, there's becoming some very -- the distinction between Autopro as a stand-alone entity is becoming less and less every single day that we move forward. And it's time that we started to look at some of these debt covenants in respect to that.
Okay. That's helpful. And just a clarification on the way you calculate your adjusted EBITDA. You add back about $4 million of salaries and professional services. Do these -- any of these tail off? Or are they expected to recur every quarter?
Did you want me to answer that?
Yes, please.
Yes. No, we do expect that those will remain consistent. We -- those are sort of expenses that are related very specifically to all the public company public market works that we do. And that's the reason that we back them out because they're not super representative of what's happening internally from an operational point of view.
Okay. Got it. And then one last question for me. The 3D Digital Twin and then the Connected Workers, which revenue line item will they show up in?
AssetCare. I don't know which of the 2 AssetCares they'll show up into. So Chantal, I don't know if we -- we haven't recognized any of that revenue yet. So go ahead. Yes.
It will depend on the nature of the contract. So I can't give you a definitive answer right at the moment. But depending on the nature of the contract with the client, it will be spread between the 2. Some of them may be purely long-term perpetual looking type situation and some may not. So each client is kind of coming to us with different needs. So we will make that determination based on the context of the agreements with them and IFRS 15.
Steven, an example is, if they already have everything scanned, all I have to do is enable it, put it in the cloud and have a Digital Twin, it looks like a pure play. It looks like Dropbox, right? It's just basically -- it's Saas the way you go. If they come to you and say, hey, here's my facility, scan it, put it into a Digital Twin. And then I'm going to have you -- pay you a monthly recurring revenue fee for the next 3 years, then there's an upfront component of it.And so we have both. Some people already have AVEVA scans already. Some have nothing. They just have, hey, here's my assets, give it -- do something for me. That's why Chantal -- it depends which ones you're talking about.
Okay. Makes sense. And the same thing applies to the Connected Worker, Russ?
Yes. Same thing. But they're always going to be in connected hardware. There's always going to be a hardware component because I think there's only one customer up to now that have come to us with their headset saying, please connect me. Most of them is -- I want Connected Workers. I have nothing. It's like showing up at AT&T with no phone and no subscriber service, you want it all, versus showing up with your phone saying, connect me to a plan. The latter is almost never because nobody has these headmount displays.
Your next question comes from Jack Vander Aarde with Maxim Group.
Good to see you guys continue to expand that connected asset base. It sounds like you're pretty confident that you're on track to reach that 70,000 target by the end of 2020. So I guess I'll start with a question on recurring revenue and AssetCare business revenue. Just hoping you could provide more color on all the various -- what are all the various sources of revenue that contribute to that recurring revenue number? Or is that essentially synonymous with AssetCare revenue at this point?
Pretty synonymous with AssetCare revenue at this point. I mean that's the only thing we have, right? So even if we have Digital Twins, there'll be AssetCare. The contracts will be AssetCare contracts. It's going to be divided over a period, and it's going to be attributed to a certain asset type. So they all kind of look the same.
Okay. That's helpful. And then I apologize if you already touched on this, but maybe I'd like to know, as it relates to your 2020 target for AssetCare revenue, are you able to provide maybe like a rough breakout of that target AssetCare revenue between what you expect for smart buildings to contribute, wind turbines and oil and gas, like a rough percentage breakout?
Let's do that the next call, so I don't just mix them. What we're seeing is this transition from -- when we came into the year, it was going to be $30 million of projects, and the rest of it was going to be AssetCare. Now we're seeing this big up -- and AssetCare, more vanilla flavor AssetCare. Now we're seeing Digital Twins, Connected Workers and so on. So it's all heading in the right direction, but to give you -- to me -- for me to give you something more precise, let's do that at the next call so I can give you -- the answer is yes. Can I do it? Can I give you a good answer now? The answer is probably not that great of a distribution but -- because there's a lot more oil and gas happening than we expected. So I want to give you a good number.
Sure. That's fair. And actually, I think you answered my next question there is, were there any specific types of assets or verticals that are exceeding your expectations? It sounds like that's the oil and gas vertical.
Yes. As Barry has mentioned, we didn't expect people to buy, and I think Kevin alluded to the question. When we came into the year, we didn't -- we expected everyone to buy on kilowatt hour reduction that drive the cost savings and reduces demand charge. Now even though it's still a building, air quality fits into the buying decision. That doesn't change -- well, it changed the buying decision, but it doesn't change our thinking about buildings is important, and we're going to scale it really nicely.What has really changed is people thinking, I don't need to drive to or fly to oil and gas assets the way I used to. I haven't been for 7 weeks now, but I'm still connected. Why don't I just do it all that way versus during a 5-week interruption? Why don't we just do it that way forever? And that kind of thinking was not a thinking we saw happening coming into this. And now that's happening everywhere. Everyone's saying, well, if I didn't go there for 6 weeks and we're now connecting or it's connectible, why in the hell do we ever go there ever? Why don't we just do it from here from now on in? Just like this conference call, we're in 3 cities and 2 countries right now doing our earnings call that used to all be everyone in the same room. Case in point...
Absolutely. Absolutely. It's crazy times, for sure. Maybe as a follow-up on something non-AssetCare related. The press release, I know, commented that revenues from the legacy technical project services expected to remain a little light until at least in mid-2020. Can you just talk a bit further maybe on like the specifics of what projects those are or maybe what specific that is referring to? It's all Autopro?
It's all AutoPro. We did $2.4 million in Q1. I don't think we're going to do much better in Q2 because most of -- I mean right now, I think Alberta just allowed people to leave their home a week ago. So projects will be light again in Q2, start picking up. That one is very dependent on people being able to move around. So what was $30 million might be $15 million out of that $70 million guidance. So the rest is all AssetCare of the various flavors we talked about.So the good news is better margins creates recurring revenue, blah, blah, blah, everything we discussed about. But that's the technical services we're referring to. And the humans are working on these remote connections. So they have domain knowledge that's very helpful for the team. So they're doing productive things. So it's good for us.
Okay. Great. And then just one more for me, back to AssetCare. Specifically, I'd like to know maybe your thoughts on what we're seeing in China with regard to previous -- like previous AssetCare implementations in those large shopping centers from -- I think a little over a year ago, you had a few major press releases there. I guess just because they were ahead of us, at least in North America with the pandemic and the economic shutdown, so what did you experience there? Any interrupted AssetCare contract or interrupted revenue from those contracts during maybe January, February, March? And how have those rebounded since if there was impact?
So rebound, not. So our strategy, once this started, is to focus only on SCN connected malls and only work through SCN. And fortunately, in 2019, they were trained to do what we can do. So they're reasonably self-sufficient. That being said, the malls that were connected prior to the COVID is still only the malls that are connected now. That being said, as they start get more bullish, we're going to see later this year, and Barry is closer than I am, some additional malls coming on board. But we're not going to do anything that is not through that channel. We're not going to deviate from that channel. And we're going to stay very focused on SCN and SCN malls, which is equal to safe, reliable, and we know what we're getting involved with, and we're not going to deviate from that.On wind turbines, it's only going to be Longyuan near term. Those were connected and we kind of paused their bunch of GE turbines. They're getting ready to get started again. They're sending people out in the field to do drone inspections and blades. Again, Longyuan is the largest producer of wind energy in the world. They know us. We know them. And we won't deviate from that norm, and we'll stay very focused.So what's changed is we're going to stay very, very focused and not try to chase what could be a big market. It doesn't matter if it could be a big market. We're not going to get distracted by that. We're going to stay very focused to those things for no other reason that it's safe on all fronts, if you know what I mean.
There are currently no further questions at this time. I'll turn the call back to Russ for any closing remarks.
Well, thank you very much. It was very good questions, very good session and look forward to the next call. Thank you.
This concludes today's conference call. Thank you for joining. You may now disconnect.