Good morning, and welcome to the Acorn Energy Year-End Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation there will be an opportunity to ask questions. [Operator Instructions] Many of the statements made today in the presentation and our responses to your questions are forward-looking. These statements are subject to various risks and uncertainties. In particular, DSIT's performance in 2015 and future years is subject to various risks and uncertainties including, one, risk associated with meeting performance milestones; two, political risks associated with its government customers; and three, of risk of possible costs overruns associated with fixed price projects. There is no assurance that DSIT will complete the projects described or generate the anticipated cash flow from operations. A complete discussion of the risks and uncertainties which may affect Acorn Energy business general and the businesses of DSIT and its other subsidiaries is included in the risk factors and the company's Form 10-K filed with the company with the Securities and Exchange Commission. Please note this event is being recorded. I would now like to turn the conference over to John Moore. Please go ahead sir.

Thank you. Welcome to the Acorn Energy year-end call. I'm joined on the call today by Joe Musanti, our Chief Operating Officer; Michael Barth, our CFO; Benny Sela, the CEO of DSIT; and Walter Czarnecki, the President of OmniMetrix. They will be available to answer your questions at the end of my prepared remarks. On our last quarterly call, I told shareholders we are going to sell one asset, which most people correctly surmised was DSIT and to find a partner for our U.S. seismic asset. Our plans changed dramatically because of two intertwined events. Collapsing oil prices and growing awareness of the vulnerability of underwater infrastructure that changed our direction. The first led to a collapse in the value of U.S. seismic and the second is leading to a major inflection point for DSIT. Given the relative swiftness and significant to these changes, I want to address the viability of Acorn. In the past, we made it very big on U.S. seismic in anticipation that a major service provider would give us a lucrative exit. That didn't happen. And we acted decisively to cut our cash burn. We have a plan that will allow Acorn to self-fund by organically growing our remaining three businesses. The success of this plan hinges on DSIT. We did not enter into this plan lightly and did so after intensive discussions with management of DSIT and our Board. Let me share with you the facts that spurt our decision to commit to DSIT's focused turnaround plan. After three years of relatively flat revenue and operating performance, we believe that DSIT is growing and maturing sales funnel driven by the previously mentioned global events plus the expected cash from the collection of accounts receivable and milestone payments from existing orders will be sufficient to fund…

We will now begin the question-and-answer session. [Operator Instructions] We have a question from [Harvey Poppel from Potac IP] [ph]. Please go ahead.

Welcome, Harvey.

Welcome, John. And a very congratulations on the moves that you made in this recent success of DSIT, it certainly sounds like you have repositioned Acorn overall for some sustained growth going forward. Question I have is, with the suspension of USSI, you got some Board members I think that were brought on Board specifically for their experience in that industry. There will be some further SG&A cuts including Board changes as a result of all this discontinuing of the USSI?

I believe there will be at least one person on the Board that will change.

How about SG&A overall?

We are under a lot of pressure to reduce SG&A at the corporate level and we are adding selling functions at the operating company, and I'm going to be spending a lot of my time on the road as well. But, we have recently downsized our corporate offices and that saves us a lot of money and we are constantly looking for ways to cut costs. We are very, very mindful of the fact that we really have an obligation to the shareholders to fund the company out of its cash flow.

Okay. If we looked at SG&A in the fourth quarter of 2014, would that be the kind if baseline for 2015 or do you expect it to be lower rate than the final quarter of 2014?

Lower.

Okay. Also as it relates to the disposition of assets for USSI, is there a potential to recover anything out of that or are you still going to be laying out money for closing the operating down. How does that look like it will net-out?

While, we just – Mark Bashforth on the call right now, I failed to mention that he was on the line. But, we terminated all employees yesterday and we are in process of soliciting bids to sell the remaining assets. And we think that our financial exposure is extremely limited less than probably $100,000.

Okay, good. Thank you very much.

Thank you, Harvey.

[Operator Instructions] Showing no further questions – my apologies, we do have a question from [indiscernible]. Please go ahead.

Yes. My question is regarding USSI as far as paying vendors, is there any possibility that vendors will be paid what is reserved to them?

So right now, Mark is leading the effort to sell the assets at US seismic and the goal is to pay-off our $1.5 million bank debt and approximately $1 million of accounts payable. Those are all due at the US seismic level and we hope that our vendors will be relatively paid back out of the proceeds of the US seismic assets.

Okay. Is there any timeframe for that?

It's happening now.

Okay. Is there anyone that we would be able to get in contact with that sub point to see where things stand or?

Yes. I got your number on the dialing that list and we will call after the call.

Okay, great. Thank you so much.

Thank you.

And our next question is from [Jeff Gilbert from IKShaw] [ph]. Please go ahead.

Hello, Jeff.

Congratulations on the other city areas, just on USSI follow-up to the previous callers question. With approximate $2.5 million outstanding in receivables or accounts payables and bank debt. Can you just comment on Board's deliberation on the alternative of using the cash flow that you enumerated from other subsidiaries for the corporate to pay that down and then just mothball USSI and the cost benefit analysis of the Board looked at during the sale which could be constituted as fire sales?

So Jeff that's an excellent question. And that's something that our Board really urged us was, how could we use – how do we sell some of the assets or we have to do something to try to preserve the value of US seismic. And the conclusion that we came to was – we had tried very hard to market the asset. We have tried very hard to partner with companies, some of the biggest oil field service companies. And nobody was forthcoming with any cash or debt to the bank $2.5 million of payables. We think that there are interested parties in buying these assets at what you described as a fire sale price. The hard part for the Board to assess was how long would, if we paid off that debt, number one, where did that cash come from, we have to do raise additional funds which our shareholders clearly don't want us to do. And second of all, how long is the cycle and how long do we have to mothball the assets for. And I think probably we are on the previous call where one of the world's largest oilfield service company's initially told us that they were going to buy the asset and then they subject to of course to due diligence. And then, further due diligence and then they called us back couple of weeks later and said sorry that world market had a complete free fall. We think we are in early days of a complete of a down cycle in the oil and gas and we can't predict when it's going to come around. So maybe – we need to put this in the fridge is what they told us. And so our Board just came to the conclusion that we don't have the resources to mothball the assets and we have an obligation to our bank and our vendors. And on the other side we have what we think are very promising growing businesses that will be flowing off cash flow. So we just thought that was more prudent use of our resources.

Fair enough. Appreciate at least the deliberation of what the Board [has done since] [ph] the previous call.

It was – I heard the word mothball one more time. It is the word – the word of the last 30 days because that's 60 days has been – when everybody has been talking about on the Board and how can we do it. We just couldn't find a constructive way to accomplish it.

Fair enough. Thanks.

Thank you, Jeff.

And our next question comes from Ted Lou from Valley Financial Group.

Good morning, John.

Good morning, Ted.

I just wondered if DSIT is using some fiber optic technology whether any of that came from USSI?

Benny Sela is on the line. And Benny, do you want to answer that question?

Interestingly, hydro optic sensing technologies started by our sister company USSI, we are also had joint projects under built, which is by National Israeli and U.S. fund. But, what we are doing now – we are developing new interrogators is really – and not based on USSI. And this is a co-development between us an industry and some universities – part of big universities, with the support of the Chief Scientist --. And we are – they help us to fund it and use some of the knowledge and technology and patents that we jointly developed with the universities. And we are really –– worst case we are dependent on USSI then the answer is no.

Well, thank you very much good answer.

Thank you, Ted.

We have a follow-up question from [Harvey Poppel] [ph]. Please go ahead sir.

Yes. I just wanted to clarify John, when you talked about the debt that USSI has, I think you said $1.5 million, that debt is not something that the parent as to face up to in its liabilities from this point, is that correct?

That is correct. It's non-recourse debt to Acorn. Of course, we take all of our debt seriously and we are going to do everything we can to try to in the course of liquidating the assets to get everybody paid back, but no, it's non-recourse to Acorn.

Okay. Thank you.

[Operator Instructions] Showing no further questions, I will conclude the question-and-answer session. I would like to turn the conference back over to management for any closing remarks.

Well, thank you everybody. We have had about 75 people on the call today and really appreciate our shareholder interest and what's happening at Acorn, it's been a fast developing situation. And we are dealing with things on a day-to-day basis. We have great confidence in our management team. We have added two what we think are incredible sales resources to drive OmniMetrix and GridSense and we hope that we will be getting returning to a situation where our revenue is growing from where we can achieve profitability and get back on track of creating shareholder value. So thank you everyone, so much for your patience and be assured that we are all working very hard to create shareholder value for the managers and for the shareholders. Thank you very much.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.