Okay, thank you for your patience. We will now begin our next presentation, so let's please give a warm welcome to the CEO of Phunware, Stephen Chen.
Hello, good afternoon. Thank you so much for all joining. I hope everyone's had a great conference so far. I'm here to talk to you about Phunware. I think it's a fantastic story, in no small part because the liquidity of our stock exceeds the aggregate of every other company here today. Phunware is an interesting company. We've been known as a meme stock because of some of the companies that we've worked with in the past. In particular, we've done work for about 10% of the Fortune 500s, but above and beyond else, we've been active in political and presidential campaigns. We're well known as having provided mobile tech services for Donald Trump in the past. What that has given us is effectively a golden goose.
We are well-capitalized, probably, you know, we have zero debt, well-capitalized, and we'll be around for the next, call it, two decades moving forward, even with the cash that we have on hand right now, which gives us an incredibly long runway to pivot the business, which we announced sometime last week. Phunware is interesting. We've been around for about 19 years. I was the former board chair, and I was appointed as Interim CEO about 48 hours ago, so pretty new. You know, Phunware was highly relevant in the past as a mobile cloud platform. And what we now have is an opportunity to take our financial strength and pivot into the Gen AI space. We've got a very diverse industry presence.
We have strong financial footing, and we have the ability and the balance sheet to go and acquire different opportunities and operators in the space. Moving forward, we have two main areas of focus. I think that our relations with the GOP party are well understood. And depending on where the presidential elections end up, I think one can reasonably assume that we'll pick up $several hundred million worth of federal contracts. Above and beyond else, you see our ATM filings. Even were that not to be the case, we'll pick up $several hundred million vis-à-vis the ATM. Capital is not an issue for us. And my background, particularly as a successful operator who's sold multiple businesses with a focus on rapid business expansion, puts us in a really unique space to dive headfirst into the generative AI space.
So what is it about us that makes us special? Well, we have worked with many of the Fortune 500 companies already. And as powerful as ChatGPT is, you will be hard-pressed to find any public company that's willing to upload all its internal data onto a public system. We are the picks and shovels. We will take your proprietary data, install it on localized LLMs where it's entirely safe and secure, and allow you to create content and deliver interesting insights that are hitherto unavailable to you. We'll do so in a low-cost environment, albeit highly secured. And unlike many of the providers out there that can give you some really interesting insights but can't promise to be around for a long time, we don't have that problem. We'll be around for a very, very, very long time. The opportunity is there.
We were in the global app marketplace, and now we see the generative AI space. It's a $500 billion market cap, and no one can say that they have had three years of experience doing it, which means it is an entirely open opportunity for us. And with the fact that we have done this for several decades with among the largest companies on the planet, including 21st Century Fox, which is what our connection to Donald Trump was previously, we oversaw the entire mobile app infrastructure. So unlike every other company out there that identifies a problem and then duct tapes a solution together, we don't have that problem. We have a highly robust, highly scalable platform that has proven to be able to deliver content to billions of people simultaneously across the globe. Competitive advantage, AI-driven customization. We're a modular and flexible platform.
Phunware is known because we're able to crank out mobile apps faster and cheaper than anyone else. We can crank out mobile apps in a matter of hours at a cost of $2,000. And all we're doing now is we're tying it together on the front end, so on the back end, our developers are able to create these apps very quickly because they pull from a series of modules, a booking engine plus a location aware plus a checkout system. Fantastic. All we're doing with the Generative AI space is we're putting a prompt, and you type in whatever you want. Today, we have a ticketing system in the back end that's pulling together these different modules. Tomorrow, it truly will be entirely automated. In terms of integrated monetization tools, I think it's also really interesting.
We don't need to be the ability to reach millions of people simultaneously or millions of businesses simultaneously because the s and the 1&1s of the world have already done so. What we have, what they have is the ability to generate highly customized websites with a click of a button. What I can do is create highly customized mobile apps with a click of a button. I'd much rather have a relationship with them where for every $10 they charge a customer, I keep $5, and it gives me access to hundreds of millions of customers immediately, and were it not to be for the Wix or the GoDaddys, there are hundreds of other domain-level providers that would take me up on my offer today because I have a proven history of delivering, again, to the second or third largest global telecommunications company on the planet.
Products and services, what we talked about. We've got lots and lots of great recommendations from our current supporters. We have a fantastic marketing and promotion system. Use cases include tailored solutions, secure and scalable, both the small and medium businesses, as well as the enterprise-grade mobile apps, as well as Generative AI. Growth strategy. We're very, very lucky. We've got a tremendous balance sheet. And frankly, management consulting firms are very, very cheap to buy. So looking forward, we will have best-in-class talent, which will add on to the team we have today. We have a long view to the future, and we have the ability to build on the product roadmap, which we're quickly solidifying today. And we have really interesting verticals that we can jump two feet in immediately. So investment highlights. We are incredibly financially secure. We're trading on tailwinds that are highly in our favor.
We have leadership that the board believes in and has a history of delivering on companies at scale with exits which are verifiable. Any questions? I'm happy to answer them.
With the generative AI building the mobile apps, do you realize more margin from that from developers, or do you feel that's going to be a customer's way to attract them?
Yeah, no, the margins are substantially better. They're substantially better, and look, there's no downside to it, right? Because we're delivering for our customers right now. All we're doing is making their lives easier. Moving forward, we have, call it, two main parts of the business. We're happy to take $200 per month to do mobile apps for the small business owner and feed it on a flywheel-type basis and keep feeding it ad dollars, which, again, we have lots of ad dollars to spend, but we also have time. Moving forward, we want to have the $1-$10 million check sizes for federal contracts or $1-$10 million contracts for Fortune 500s. Our growth plan is really, really simple.
Any guy that did digital transformation over the last 15 years at a partner level at a firm like Bain, McKinsey, PricewaterhouseCoopers, Deloitte. It's open season. Come spend some time with us, bring your customers, see if you can deliver, and you'll be the most relevant person in the room for the next five decades.
Long tail, that's like just CBA versus LTV and then massive enterprise?
Yep, we'll have both. We'll develop the market value, and we won't have a burn issue come 24 months from now. It's very, very easy to pick up a management consulting firm and call it a day. Most of these guys, most of the firms out there are capital constrained, and it used to be a year ago that, man, we can't afford that developer because he's going to cost us $1.5 million. That's not an issue for us. I can go to sleep and wake up and still have that capital on the bank account. Next.
As you look at the future transformation, what are the biggest challenges for you over the next 12 months?
Yeah, the biggest challenge, I think, is cultural. Within the small cap space, a lot of bad actors can hide. And I have neither the patience nor the tolerance for that kind of shenanigans in this firm. The first email we ever sent out went around culture. We're looking for folks that have a sense of urgency, a sense of ownership, a sense of innovation, and a sense of curiosity. Because above all else, the skill sets that you bring to the table, these four characteristics will allow us to scale. And if it doesn't match, we will find you another institution to work at, and we will find the talent that believes in those cultural values. And already, we're seeing the benefits. The other component is just accountability. A lot of this has to do with cadence.
We've implemented a system called EOS on day one, where you set the quarterly goals, you figure out what the weekly goals are, and next week, we ask you, did you do what you said you were going to do seven days ago? And if you did not, we'll ask you, what can we do to help you? And we revisit the conversation seven days from there. And it quickly becomes very difficult to hide. And we will root out any waste, and we will look for efficiencies while building a sense of culture that has a sense of urgency, ownership, innovation, and curiosity. Next.
Is everybody throwing new rocks on EOS these days?
Is anyone throwing rocks at the firm, Abby?
No, no, no. On EOS, they call it a rock, right? When you throw a task back and forth or something like that.
Oh, on task. No, the nice thing is this, right? I've run and sat on many, many boards, and they say when you have a dead fish, it always starts from the top down. We've done an excellent job of cleaning out management that doesn't have our shared values. And we've brought on HR folks that will measure against the cultural sort of foundations that we look for. It's very easy to measure for urgency and ownership and innovation, right? Those are the things we're looking for. And it's been great, frankly, because a lot of the folks at the company have been yearning for this opportunity to be highly relevant, both industry-wide, to tell their friends that we're working on something really freaking cool. And that's what we're doing today. And I'm very excited for our future. Yeah, you had a question?
Some more context around the federal contracts you're looking to. Are these opportunities already bidding for? Anything you should expect to come?
Yeah. So today, Phunware does not have federal contracts. I, however, personally have been able to work on many federal contracts. After the exit of some of my successful ventures, I acted as a fractional CFO, including one company that was a munitions seller to Uncle Sam. We were the second largest frangible seller in the country. So I'm familiar with the subs, the primes, the SDVOSBs, all these different certifications, the FedRAMPs. And I'm also aware of the amount of time and effort it takes. You have to have a FedRAMP to cost you $600,000, two years to do. I don't need to go through that process. I know who has these licenses already. I know how to offer them a check, and I know how to find the smallest guys out there that will accelerate this process. I know that I have strong political relationships.
I know that my former chairman was a Republican congressman. I know my own Rolodex. We can get in that room all day, every day, and we don't need to wait for the certifications or the licenses because worst comes to worst. We go under someone else's title. We give them 15% of the upside or whatever it is, and we go deliver. And again, unlike other firms that are duct taping solutions together, we have a highly rigorous process. We have utter transparency, and we're implementing a system of high integrity and checks and balances. Everything is documented. There's SOPs for everything. No one's going to wing anything. We're very excited to deliver great service to the federal government now. Next.
Just a question on the outcome of the election.
Yeah.
Is that changing the strategy with that all because the other?
The answer is it doesn't really matter, right? Because Donald Trump wins, we end up with several hundred million dollars' worth of contracts, hopefully. Donald Trump loses, we end up with several hundred million vis-à-vis a hypothetical ATM. We win either way, every day, all day. Because again, we have a deep understanding of the capital markets. We understand our users are retail customers that yearn for information that is highly relevant to their lives. They're using these tools today. We will show them how to use it better, and we will show them how Fortune 500s are using it, and we're keenly aware that this is the lifeblood of what we do, and we're very thankful for the users that believe in the mission that we have today.
And we're thankful that they understand that we take capital as being good stewards of that capital and putting it to great use because there's lots and lots of folks doing interesting things out there but may not have the financial strength that we are now blessed with. And we hope to direct those resources on outstanding returns for our investors. Next.