Okay, we will begin our next presentation. Let's please give a warm welcome to the President and CEO of SuperCom, Ordan Trabelsi.
Thank you very much, and thank you, everyone, for coming to see our investor presentation update. I welcome you. I'm going to run through the presentation, talk about our story, give some updates, and then open it up for Q&A at the end. Right? Great. This is updated as of October 2024. Safe Harbor statement. A little bit about us, so SuperCom has been around since 1988, a global provider of electronic security solutions to governments worldwide. Our current focus, and the focus in the past several years, has been offender electronic monitoring services, which is ankle bracelets, which you may have seen, house arrest, GPS monitoring, essentially alternatives to incarceration, which are more cost-effective and have better results, so our ticker is SPCB. We're trading on Nasdaq Capital Market. In 2023, we had 51% revenue growth year over year.
Our CAGR, in many of the last years, is above that. It's above 60%. I've been the CEO in the company in the States until 2021, and in 2021, moved to Israel to take the global CEO role of the parent, together with other new management. We started in 2021, and since then, we've shifted gears into rapid growth and more acceleration and expansion around the world. We put over $40 million into the R&D of our electronic monitoring solutions, and we have a five-year record EBITDA in 2023 of $4.8 million. Our run rate this year is even higher. We had a run rate of roughly $7.2 million EBITDA. It's interesting, especially when you compare it to our market cap, which is lower than that currently. It's a potential opportunity for investors. We won a $33 million project in Romania recently.
Not only is that a substantial new project, because Romania has never done this before, and we're talking about 15,000 offenders that we're going to be monitoring at any given point over the course of six years. It also gives us a strong reference for any other projects around the world of similar size. We have a track record of over 50 governments and over 100,000 individuals served. We're actually currently serving very large numbers of individuals as well in California and in many areas in Europe and in the U.S. We have 119 patents that were issued, and our recurring revenue as of fiscal year 2022 is 73%. That moves around from year to year, but still a good portion of our revenue is recurring. Our mission is to revolutionize public safety worldwide with innovative electronic monitoring technology and complementary services.
We provide the tech, that's the hardware, the software on the cloud, on the phones, in the bracelets, on the embedded chips, and also the complementary services, because when someone comes out of prison, for example, you don't just throw them back into society where they will recommit crimes at a very high rate. The recidivism rates are over 75% in the U.S., for example. We help them reenter. We help them with the drug abuse, with anger management, with motivational interviewing. We help them with vocational training. And that's part of the comprehensive services that we offer to reach the goal of improving public safety around the world. So let's talk about the criminal justice systems and some of the problems worldwide. The main elements are high recidivism rates, prison overcrowding, excessive costs, and unsafe communities. The recidivism rate in the U.S. is roughly 75% within five years.
Within five years of being released from incarceration, you have a likelihood of over 75% to be rearrested and put right back in. That inflates continuously the amount of people that are in prisons, and that brings the U.S. to the highest prison population rate in the world of 571 prisoners per 100,000 inhabitants. That reflects over 0.5% of the population of the U.S. is in prison. That's a very high rate, certainly not effective, not cost-effective, and not effective in terms of increasing public safety in the U.S. If you compare that to Denmark, the rate is 72. You're looking at close to 10 times lower prison population rates in other countries around the world. That's just a sign that we need to improve things in the U.S. Also in other areas of the world, there's room for improvement.
Prison overcrowding in the U.S., again, as an example, 103% prison occupancy. That means people have to share beds, they have to sleep in turns. That creates a lot of conflict. There's already conflict in the environment of prison, as you can imagine, and this exacerbates that. And excessive costs. There's over $80 billion spent annually. This is a few years ago. The numbers have actually increased since by running prisons. If you put someone on house arrest, you're saving 90% of the costs, direct costs.
But you're doing much more than that, because instead of being in prison in an environment where they are prone to increase their, let's call it, skills and abilities in criminal activity, and there's more room for emotional trauma and other behavioral changes that we don't want people in our communities to receive, they're also able to work, and they're also able to take care of children and take care of their family. So the contribution of putting someone at home is over 90% cost savings, but there's actually much more when you look a little deeper. The market is a nice niche market with growth because of all the reasons I described before. It's estimated to reach $2.3 billion in 2028, and you see the majority of the markets in the U.S., which is a great opportunity for us, because we had SuperCom focused until now mainly on Europe.
We had very good win rates there, and now we've been expanding and focusing on the U.S. market, which you can see is a big portion and a great opportunity. There's only 10 players, roughly 10 international players around the world. It's a market with very high barriers to entry. You have to be doing this for 5 to 10 years to show experience doing this to be able to bid. So Facebook or Apple can't wake up tomorrow and say, "Oh, we have great technology, great engineers. Let's bid." No. Absolutely not. You have to show you've been doing this. You have to show that you've succeeded in doing this. You've tracked offenders, high-risk offenders, low-risk offenders. The environment is very sensitive, and the governments don't want to take risks with new players who think they can do it.
You see a very varied market, 10 players, and that allows us for continued growth within the market and to maintain our competitive standing as one of the leading players technologically. Here's our technology suite. We support a wide array of programs. For those of you new to this space, there's initial programs or house arrest, which you may have seen. Essentially, instead of being in prison, you have to stay in your home, but you're confined to the home. You have an ankle bracelet and a house unit. You see there's PureCom, and you have to stay at home throughout your sentence of house arrest. There's GPS monitoring, which essentially means you have to stay at home, but throughout the day, you can leave your home. You can go work. You can go pick up your kids.
You'll see on the system in the middle, PureMonitor, that's our cloud-based system. There's little inclusion zones and exclusion zones, areas we're not allowed to be, where you are allowed to be at certain times. There is domestic violence, which is one of the things that we in SuperCom are leaders in in the world. We probably have more units in domestic violence than any other player out there. The project in Romania of 15,000 units is mainly domestic violence, and we developed and deployed a system called PureProtect. And because our bracelet, you see it up there, the PureTag, is very lightweight, very ergonomic, and the battery runs for up to a year without charging, we're able to change a paradigm, change a construct of how domestic violence is done.
So if historically the government would require you to be convicted first, and that takes years through trial before you get a domestic violence program here, for example, in Romania and others, the police are able to come home, see that there's damage on the body of the victim, and immediately put a bracelet on. This bracelet does not require too much work from the person wearing it. You don't have to charge it. You put it underneath your sock and you forget about it. It's lightweight, it's ergonomic, it's waterproof, and that allows for new systems and new environments to take place. And once people see that when they complain, the person gets a bracelet on the leg immediately. You see more complaints. You are aware of this more. And how does it work? A person complains that they were hit domestically.
The police come, they see signs, they put the bracelet on. That person wearing the bracelet cannot come close to the victim anymore. If he comes close, the victim's phone automatically alerts the victim and also the police. And that's how you effectively create a restraining order. Not the paper restraining order that never works and you can't see where the person is. This is a dynamic, real-time, effective restraining order, and you could do that to protect women, children, men, whatever the need is, and it works excellently. And we're doing that all over the world right now. We have in Romania, we're looking to put it into Sweden, Finland, Estonia, the U.S., and we're one of the leaders in this space. But that's just domestic violence. You can see there's many other things. There's inmate monitoring, where you're tracking them in the prisons.
There's alcohol monitoring for a second DUI before going to prison. A lot of the lawyers will offer the judge for the person to be on an alcohol monitoring program. That means that they're at home and they cannot drink alcohol. They have a bracelet on their leg that measures alcohol in their sweat, and if they can prove that they don't drink alcohol for 60 to 90 days, that is sometimes a great indication to the judge that the person is making progress and healing his problematic behavior. We also have rehabilitation services, which I touched on before. That means a person comes out of prison, you don't just throw them back into society. It's very hard for them to get a job. It's very hard for them to change their behavior.
We support that, and we want to create a healthier society by bringing people to a healthier level, which is more compatible with the rest of society. We've won over 50 projects, and we continue to win. We just announced recently that we won the national project in Israel. That means all electronic monitoring in Israel will be done through SuperCom. We won another project in Europe, won other projects in the U.S., and we continuously announce this through press releases to the public market. Our solutions create positive social impact and improve public safety worldwide. That is a fact. We see this over and over in various regions. We're helping with saving lives of potential victims. We're aiding to eradicate domestic violence.
We're increasing public safety and well-being, offering rehabilitation and reentry, reducing incarceration population size, and we're significantly cutting government expenditures, the same capital that can be used for healthcare and for other important goals and tasks of the government of any country around the world. We're able, in certain instances, to reduce recidivism to 35%. So the 75% that we saw before changes with the help of good technology and good proper services and complementary programs like the ones that we run at SuperCom. So why do we win? Why are we able to lead and enter more and more programs around the world and grow so fast? A lot of it is thanks to our tech. We have industry-leading technology. We put over $40 million into this, and we continue to invest every year.
We have a strong R&D team in Israel with great experienced engineers together with the QA and the product design and the project design, and we have a win rate in Europe in the recent years of over 65%. Now, if you remember, there's 10 players in the industry, and one player has over 65%. That means that one player is winning more than all the other nine players put together. That is a certain indication that there's something special going on there, at least with the technology, because our price levels are similar to others, and we have a track record, but not necessarily as long as the others. But what we have is that unique and different is our technology. So our superior technology in terms of battery life.
The bracelet, the old bracelet, the clunky one-piece on the leg. The battery runs out after a day or two. You have to charge your leg, and you have to connect your leg physically to the wall. Now, that's not the safest thing in the world, but also it's easy to forget. People fall asleep, they're tired, they watch a movie. "Oh, didn't charge my leg. Sorry, my cyborg leg bracelet's not working." And they have to get off the program. We don't have that problem. We overcome it. There's no charging required. Ultra lightweight. It's underneath your sock, so it doesn't tag you. You don't walk around and show the whole world that you're an offender and then prevent yourself from actually reentering society in a proper way. Next-gen location tech.
Most of you probably noticed that when you're trying to track with old tracking technology, even on your phone, location service, it's not going to work well in the subway. It's not going to work well within buildings. We overcome that. We don't just use GPS. We use GNSS. We use Wi-Fi for tracking. We integrate with basically any tracking platform that is out there in a very seamless manner for our customers. We have multiple methods of biometric authentication. We do video calls, two-way communication, and we have the unique domestic violence solution that I told you. The bracelet communicates with the phone automatically to make sure the offender is not close to the victim. Like in many other industries, and especially with government customers, which are very discerning, you can't just come out and win massive projects. You have to start small, and that's what we did.
We've been doing this for years. We started with projects in Lithuania, $100,000, then Latvia, Denmark, Finland of $3.6 million, Sweden of $7 million, and lately Romania of $33 million. Not just interesting in size, but also the amount of units, 15,000 units at the same time. That replaces every single month. That means over six years, you could track up to a million offenders. You could protect up to a million families just with one program that we do, and we do many programs around the world. You can see some of the countries we've already won the RFPs in, including Bulgaria, Estonia, Finland, Latvia, Portugal, Sweden, and more, and there are many opportunities out there that we expect to be bidding on and hopefully receive awards for in the upcoming 24 months. Some recent announcements in the U.S.
In the EU was Romania National EM project, a third project in Sweden showing that the customer likes us and they want to try more and more projects with us. We launched an EM project in Finland and the first national project in Croatia. That's Europe. What about the U.S.? The U.S. is several times larger than the European market. We actually started with the U.S. back in 2016 with the acquisition of LCA, a local provider of criminal justice services. Since then, we won over $35 million in revenues in California, and we've expanded to other places around the U.S., including Texas, Georgia, Tennessee, Wisconsin, South Carolina, Wyoming, Idaho, and Maryland. We just announced that we're in New York as well. Our technology, together with the services of local providers, offers a unique proposition to these customers, and we're new in the U.S.
Our technology has been tailored to the U.S. just in the last less than 12 months even, and we expect to have very nice increases and opportunities there as well. Our growth strategy is multiple-faceted. First, we expand through more projects in Europe, just as we've been doing until now. We penetrate new counties. We're still on the county level in the U.S., and then reach the state level and even federal. We acquire key resellers. We've done it in 2016, and the multiples of these resellers are less than one time's revenue. There's many of them that have presence in various locations throughout the U.S., and we're in touch with them also as customers and providers for vertical integration, but also as potential acquirers, and that can help grow our presence, even though we're growing organically very effectively.
As I said, our growth in this space over the last year has been over 60% organic growth in electronic monitoring. Last year, we had 51% growth, for example. We're activating and cultivating a more active approach, not just passive, as we've been bidding in Europe and the U.S. There's more counties. It's more fragmented. So we have people on the ground calling customers, showing them demos, and making them understand why our technology is superior to many of the others, and we're innovating technology to open up new markets just like domestic violence, which didn't exist beforehand. The projects are long-term. It does take a year to two to win some of these projects, but then you have a long-term SaaS model lease. We usually get between $1,000-$1,500 per unit per day on average. There's different programs, different systems, different capabilities. Sometimes we monitor for the government.
Sometimes we put the bracelet on the leg themselves. So this is just an average, but it is a lease model that creates a lot of recurring revenues, usually over 70%. The shift in the business, because SuperCom has been around since 1988, we've seen a significant shift from 2015 to now. We left our traditional business, which was mainly in developing countries and identification, and we moved to public safety, and we can see that category of 62% over the years. We've been experiencing rapid growth, four times the industry average. You could see if the industry is growing at 14%. We've been growing 63% over the last few years. There is a significant upward trend in EBITDA. We're announcing quarters with 400% growth in EBITDA year over year, 550% growth in EBITDA. We're reaching record profitability time after time and record revenues.
Some highlights, just to summarize, the market is niche but significant in size. $2.3 billion expected to reach soon, high barriers to entry, 51% revenue growth in the last year. We increased to $2.66 million, 73% recurring revenue, which is volatile but still at a high rate almost significantly. EBITDA is growing significantly. In the last year, we saw the 2,350% year-over-year growth to 4.8%. That's last year. This year, we already had a run rate of 7.2%. And we put over $40 million in R&D, and we stay one step ahead of the curve to continuously offer the best-in-kind solutions for electronic monitoring. Here are some H1 financial summaries. You can see that our revenues are 14.4%, which would translate to a run rate of $29 million, roughly, in revenues.
Growth over last year, gross profit, net income of $3 million in H1 or $6 million annually, and EBITDA 7.2% annually when you just scale that up. That's not guidance in any shape or form. That's just the run rate based on the first six months. Our gross profit margins are 52%, net profit of 20%, and EBITDA margins of 25%. We had cash on hand of $5.7 million, and we had positive cash flow generation in past quarters. Some of these projects have reached an interesting level where we're cash flow producing. While at the beginning of the project, you're manufacturing equipment, quickly after you deploy, it shifts into the cash flow production. We're excited to see how this continues over the next years to come with more projects and more expansion around the world. That said, you can reach out through IR at SuperCom with questions.
At this point, I'll also open up the room for Q&A, any questions that you guys might have. Thank you for your patience on that.
Yes. As you continue to do penetration throughout Europe and the United States, what additional markets are you guys looking to get into utilizing your technology outside of the prison system or domestic violence? Is there beyond that, because you're looking at a capped niche, so what's the next niche after that?
It's a great question. The question was, as we look into penetration in the U.S. and Europe, what other markets are we looking to access with our technology? We do have very high-quality, cutting-edge tracking technology that could be used for offenders. It could also be used for animals. It could also be used to help parents track their children. There's many markets that this is possible for.
Since we're a small company, we're trying to still stay laser-focused in our market. We're only looking at 1%-2% penetration thus far. We have a lot of projects, but they're the smaller ones. Now we're trying to transition to the larger projects because it's the same tech, and it's just getting the customers comfortable with that. I believe that as that presence grows more and more, we will start adding other applications. During COVID, for example, the government in Israel, they wanted to use our technology for home confinement. So with people arriving in Israel for a certain period of time, we're required to go to a Corona hotel, and they offer them to be on house arrest or home confinement together with the bracelet. So the technology works for many different applications. We're focusing our marketing and our sales resources on this one right now.
We think it's a great market. We have great potential there. And then we'll look into others. And it's not to say that there's not opportunities also in South America and in Asia and Australia. They're doing electronic monitoring all around the world. There's more synergies. They talk to each other within these kind of confined areas of the U.S. and Europe. But we also look to expand, and we get a lot of opportunities in other places around the world, also in electronic monitoring.
Any other potential questions? Yes. What about your ongoing acquisition strategy? You mentioned you acquired LCA here in California. Are there other companies that you're targeting? And how does that change? Are they based on their contract penetration within the markets or their technology?
Good question. The question was regarding the acquisition strategy. I mentioned before that we acquired LCA.
It was for roughly $30 million. Their revenues were less than $10 million, but this was less than 0.5 multiple on revenues. The question is, what else are we considering to acquire? What's the strategy? And like LCA, there's many other, we call them resellers in this space. There's state projects, but then there's county projects, and they're very fragmented. And the counties don't necessarily have the in-house knowledge and experience and resources to run these programs, to run the technology, to run the bracelets. So they go to a local provider, a reseller, and they aggregate. They're like aggregators of counties. That's what LCA does for over 15 counties throughout California. And there's many others, probably another 10-20 at least of size that do this throughout the U.S. They do not have technology that we're interested in.
I'd have to say almost no player in the industry has technology that we're interested in. There's 10 players who are actually manufacturers of technology. Those are our competitors. Then there's the resellers. They're one step above us. They're closer to the customer. And on national projects, we go direct to the customer. On smaller ones, we go through the resellers. We are looking for projects where we think there's an interesting opportunity for us to leverage our tech with their customers. If they have a good presence for many counties in the area, we integrate with our tech. Not only do we unleash significant cost synergies, because right now, instead of buying from other vendors, they're buying from us. We're also creating sales opportunities because our technology is usually scoring much higher than the ones that they've been using until now.
So we have vertical integration, cost synergies, top-line opportunities and synergies. Good strategy altogether. We've been growing so fast internally, organically. It has not been our main focus over the past years, but it is something that we remember. And SuperCom has experienced, just since I've been in the company in the last 11 years, we acquired six to seven companies, and we've done it in a manner which has been quite effective. So we hope to leverage those abilities as well here. Any other last questions? We have a very short period of time remaining. I see people here are smiling and standing, which means they want to kick me out. But thank you. Any questions, we can bring them outside. Thank you so much. Thank you. Thank you, everyone, for coming. And I'll be here for the next few minutes. Thank you.