Financial Data and Key Metrics Changes - The company is undergoing a comprehensive assessment of its Lending Operations due to underperformance, which has not met the Board's expectations [5][21] - The company is actively seeking to improve operational capacity, reduce costs, and enhance liquidity [6] Business Line Data and Key Metrics Changes - The fix and flip, construction, and other lending programs have not achieved profitability as quickly as anticipated [5] - The company is taking steps to move loans more quickly off its lines of credit during the ongoing review [6] Market Data and Key Metrics Changes - The potential new technology presented has significant upside potential in the rapidly growing electric vehicle market, with a total available market of 9.2 billion annually [15] Company Strategy and Development Direction - The company is exploring capital-light asset management businesses that could enhance shareholder value [6] - A new technology opportunity has been identified, focusing on reducing energy loss and heat generation in electric vehicles, which aligns with the company's strategic direction [7][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges faced in the Lending Operations and is committed to making necessary adjustments to achieve profitability [21][26] - The involvement of a significant shareholder, who owns 45% of the company, is expected to drive value creation for shareholders [26][27] Other Important Information - The company is engaged in ongoing legal matters, including a favorable ruling in a case against Luxor and a separate action against a former director [4] - The proposed technology requires an estimated 8 million in working capital over the next 18 to 24 months, with no upfront cash commitment [7][8] Q&A Session Summary Question: Status of Lending Operations - Management indicated that specifics on Lending Operations will not be discussed until the overall review is completed, acknowledging that current results are not meeting expectations [21] Question: Asset-Light Management Services - Management confirmed that the new technology presented is an example of an asset-light business model, with revenues primarily from licensing [23] Question: Commitment to NYSE Listing - Management expressed a proactive approach to maintaining an acceptable listing on the New York Stock Exchange, despite current market cap challenges [25]
Altisource Asset Management(AAMC) - 2023 Q2 - Earnings Call Transcript