Great. Thank you. Thanks for having me here. I'm going to run through a quick presentation, take some questions afterwards. A little forward-looking information. Read it fast. OK. I'm actually going to jump right into the middle of what's kind of normally the middle of our presentation. It's really about telling you where we are today. We're at this very interesting point in INEO 's lifecycle in the fact that we've developed the technology, we've found customers, we have customers active using our systems, and we found a very, very large strategic partner that's recently licensed our technology. To really recap, patented technology, proven operational excellence. The market conditions have really lined up for us as well. Loss theft within retail is really big right now. The numbers are just going off the charts.
Retailers are looking for any means necessary to decrease that theft, and they're investing in it. At the same time, the retail media side has this huge opportunity for them to actually make money and high profitability money. Our major customers, Staples U.S., is our flagship customer here in the U.S. We just landed a very large pharmacy chain in the U.K., which we haven't said who yet. The large partner, Sensormatic , the world's largest retail loss prevention company, a division of Johnson Controls. They have 500,000 storefronts that use the legacy technology, and they've licensed our technology to offer new advanced theft deterrence, but also the media capabilities within their retail customers. If it really boils right down to what is INEO, what is our technology? On the left here, you see the existing technology. That's actually a sign from a Walmart store.
They sell advertising on these loss prevention devices today. They hang cardboard things on them, put them down there with zip ties to hold them on. They print cardboard every month. They ship it, and they have to put it on. That's our competition. We're competing with cardboard in the advertising space here. We've created this very beautiful-looking product, technologically superior in every way. What it is, it's a connected device. It allows us to offer the retail a lot of operational intelligence on the theft side. How many alarms per day? When are the alarms happening? Allow them to make decisions on different stores and storefronts and what they need to do to combat theft. On top of it, we have this big, bold advertising screen that we put into the system that is patented. Nobody else can put an advertising screen inside of a loss prevention device.
Why is that important? These things are right at the front entrance of the retail store. It's the first thing you see as you enter the store, the last thing you see as you leave. That space is very valuable in that way. That's why you see Walmart putting the cardboard sleeves on the devices. So tell me a little bit about how much theft is going on out there. It's astronomical, really, right now. The retailers, again, are investing to prevent this. Well over $100 billion. You think about that, the percentage of sales that's coming off the bottom line, top line of these retailers, but bottom line for sure. On the other side, retail media really exploding. The opportunity for the retailers to monetize the traffic on their websites, they're doing it. They're doing it well. Now it's the opportunity to monetize the traffic in their stores.
You're starting to see signage appear in the store, digital signage in the stores. Walmart's selling their TV wall at the back end of the store. You're seeing signs appear elsewhere. I think you'll see a lot more of that. We give them a logical place to put a sign. They're already selling advertising in that space, and it just works. It doesn't look out of place at all for them. I said our big flagship customer here in the U.S. is Staples. We've installed 192 of their locations so far, almost 950 locations that they have. There are some pictures on the screen of what some of those locations look like. Every store that we install at, we install a device at the front entrance. We also put signage elsewhere within the stores.
We put it in their copy and print area, which is a high traffic area, in their technology area, and in some of their shipping counters and things like that. Anywhere that there's traffic in the store, you'll have an INEO screen so that we can monetize that traffic for them. Additionally, I mentioned in my opening remarks that we had signed a blue chip customer in the U.K. They have 10,000 of the existing loss prevention devices in their stores today. Our game plan, obviously, replace every single one of those, put our systems in, again, upgrade their loss prevention capabilities. I didn't really talk too deeply about it, but when our systems go off, we give them the operational intelligence. We also give them video of the loss prevention events so that they can actually see what's going on within those loss prevention events.
We apply AI to them so that we can actually tell them which loss prevention events they need to look at, which ones they need to analyze, which ones look like something that happened at a store down the street, things like that. We really upped the game on that. We have patented this, as I said. Sensormatic, again, a great company, but they put a lot of systems out there, not a lot of innovation in the last few years. When they looked at our systems, they tried to find a way to compete with us. They couldn't. They ended up coming back and licensing our technology. Now our solution will be going out to all of their customers. If you look at who Sensormatic's customers are, there are who's who of retail customers out there.
Look at the badge the next time you walk in the front entrance of a retail store. Typically, that loss prevention stance or that pedestal at the front entrance that's going to detect tags as they leave the store, it says Sensormatic on it. We are looking at the same customers. Their customers also have large-scale retail media operations. They're already selling advertising on their websites. They are selling advertising in their stores. Our signage, we will integrate our systems to theirs so that they can actually see that as a node on their network. Our content management system can be standalone. It can be used to operate and run the network. We will integrate to the retailers if they already have it. We don't want them using two interfaces. We want them to use the one that they have. We have a very API-centric environment that allows them to tie in on that.
If you look at how that partnership works, what we did is anything that Sensormatic sells that would violate our patents, we get a royalty on. Eventually, right now, they're buying systems off us and reselling them. Eventually, they're going to produce their own. We'll get a royalty payment on those. They will sell those to the retailer. The retailer can all benefit using our software platform. Our platform is what is really, really essential to us because we get a monthly fee per store, a subscription fee, a SaaS fee, call it what you will. A monthly fee per store, per system, actually. I shouldn't say per store, per system. If a store has four systems or eight systems, we get paid monthly per system to offer it as a managed device.
We make sure it's on, it's running, it's working properly, it's tied into the APIs correctly, the data is coming off of it in terms of loss prevention or the people counting, the traffic counting. Sensormatic will take our fees and upcharge them to the retailer. We will take the licensing fees in the background, which is what we want. Right now, we have a fair amount of hardware revenue. Eventually, it's going to be all licensing and software. That's where we want to end up. That's the sweet spot for us. If we look at the store-level economics, depending on the size of the store, the hardware itself is fairly cheap. The installations actually cost a little bit at retail. You think about putting something in the store. We try to make it as manageable as possible. It all depends on the size of the store.
The CapEx plus installation is usually in the $7,000 range. We make a good margin on that. We get a monthly fee. Our target is $75 per month per unit recurring. The margin on that recurring is very, very high, as you might imagine. Our cloud costs are quite low. Our managed service capabilities, one person, we've modeled it out based upon the 500 or so systems we have in market. One person actually manages those on a daily basis because that one person doesn't have to manage 500. They only have to manage the three or four that might need to be addressed in any given day. Based on the advertising, based on the cost per 1,000 views and the fill rates, each system can generate a fair amount of advertising revenue for the retailer, which makes a payback quite quick for them.
Traditionally, it's been a capital infrastructure expenditure by the retailer. They still have to buy that capital, but they can actually make the money back on it so that they defray the cost. For the future life of these, we're amortizing these over five years. These systems, if you look at the loss prevention systems out there, most of them are 10, 12 years old. These systems will be in the stores for a long time. They can actually generate a fair amount of cash out of them. We're projecting 800 units in the market in the next year, 800 additional units, and then 2,500 thereafter, the year after. We can do those with just the contracts we have in place today, not even counting the Sensormatic contracts that are coming down the pipe. Our forecasts, we believe, are tight and manageable for our own needs. We have explosive upside growth on those.
If you look at where we're at, we've got a strong ROI proposition for the retailer. We reduce theft, and we let them generate revenue, both things that impact them immensely. On top of that, we're increasing by continuing to R&D on new features, new services. Our ORCA, we call it, Organized Retail Crime, where we analyze the videos of the loss prevention events in the background and tell the retailer which stores they need to direct attention to, which alarm events look like others, which ones they can pull up and serve on a silver platter to law enforcement to stop some of these organized retail crime rings. Obviously, the retailer worries about losing anything in the store.
What they really worry about are these crime rings that come back and just take them over and over and over again between stores, multiple regions. We've already helped them catch a few of these. We're applying AI in a very effective way on a product that's already in market. We just keep improving the loss prevention capability detection that we have. One thing that's really exciting is RFID. The industry is really pushing on the retail side to add RFID capabilities, meaning that every item gets an RFID serialized tag. If you look at today when something leaves the store, we know an item has left the store. As RFID becomes prevalent, we'll know exactly which item. We'll know that that item going out the front door is a blue extra-large T-shirt. We will actually show the product on the screen as it leaves.
We will show an image of the customer, the theft, the thief that's taken it on the screen as they leave. That thief now knows we know who they are. We know what product they've taken, not just that some random alarm has gone off. Some of these things are really helping the retailer in an advanced deterrent methodology. It's also just the future of the smart entrance, smart exit of the retailer tying in with their inventory controls right through their organization, right through the enterprise. To recap, we're positioned for significant growth in 2026, 2027, really massive upside if Sensormatic deploys like we think they're going to. We call them inevitable scale. They are big. They have immense numbers of customers. It will happen. It just might take a little bit of time because they're big. But it will happen.
We've got unique patented technology. We've had it in market. We have customers that are already using it. We're innovating well ahead of where the market is going to make sure that we are seen as the innovator in this space on both the retail media side at in-store and the loss prevention side. Loss prevention is a means to an end. The retail media is what really excites the retailers. You have to be really good at loss prevention in order to win that space where we want to put that signage. If we look at the cap table today, we have 162 million shares out there. We have some warrants which are expiring next month. If you really boil it right down between what management owns and 13 key investors, there's only 23 million shares in the public float.
I know 162 million shares sounds a little big, but there's really only 23 million shares that are held openly and are freely available out in the open market. Management, you have myself. I didn't tell you much about me to start with, but I built a company before this that we did all the online photo finishing for retailers. I've been very retailer-centric for years. My customers have been the Walmarts, the Costcos of the world. I know my way around dealing with retailers. My partner, Greg, who founded the company, he grew up through the aerospace industry and doing production automation systems using RFID technologies for tracking parts on the manufacturing floor for aerospace companies. He applied that knowledge on the RFID capabilities to what we're doing here within the retail loss prevention space.
One of our directors, I met him when I sold my previous company to Staples, hence our Staples relationship. Steve was the CEO of Staples U.S. at the time. I hit it off with him, and he's on our board now. He's since retired from Staples, but he's on our board. Cam Lawrence is also director of, he's been in a number of different places, but most recently the CFO of GNC, the retail health wellness vitamin chain, and now with an institutional corporation food supply company. That's kind of the background. With that, I'll ask if there's any questions. It's late in the day. Everybody's a little tired. I appreciate it. I appreciate everybody showing up today and listening to me. With that, we'll end early then. Thank you, everyone.