MS Microcaps Conference - Session clips and takeaways : TSSI, KLNG, BOF, MRAI, ACCS, USAQ, LAKE, INX.V, IEHC, CCEL, FPAY, MIND, DAIO, BLM.V, QUIK, BRM.V, FTG.TO, FSI, HQI
[Free] Clips to start your research
With the market facing a downturn, forward-thinking investors have a prime opportunity to buy shares of high-quality companies at attractive prices.
I know it’s easier said than done, but these are the moments when going against the crowd can pay off. At least it’s a strategy that has worked for me over my 30+ year investing journey.
So, we thought this would be the perfect time to share 19 exclusive clips—one from each interview with an executive at our March Virtual Conference, where many addressed their exposure to geopolitical risks.
Each full video includes a Free 7 minute excerpt, so you can get a taste of the key highlights. You can watch these videos and the Free clips in this post, where we highlight the positive takeaways from these fireside chats. . Here are the full videos that took place on March 3-7: Day 1 (March 3): HQI, MRAI Day 2 (March 4): BOF, ACCS, USAQ Day 3 (March 5): CCEL, FPAY, IEHC, LAKE, INX.V Day 4 (March 6): MIND, DAIO, BLM.V, QUIK Day 5 (March 7): TSSI, BRM.V, FTG.TO, FSI, KLNG However, unlocking the full videos and company risk factors, such as tariff risks, are only available for the paying subscribers.
The Free Clips
Marpai, Inc. (MRAI)
🎬 Business Model Breakdown & Cost Saving For Employers
🔷 Positive Takeaways
Turnaround Progress & Profitability Focus:
The company has significantly reduced costs while improving operational efficiency.
Goal: Achieve EBITDA profitability in 2025, with a long-term goal of $5M+ EBITDA (tied to management’s stock incentives).
Recurring Revenue Model with Strong Customer Retention:
Marpai operates a subscription-based model, receiving recurring per-member-per-month (PMPM) payments from self-insured employers.
Provides cost savings services via AI-driven claims processing, fraud detection, and predictive analytics.
Revenue Growth Through Smarter Client Acquisition:
New leadership has ended unprofitable contracts while targeting higher-margin customers.
Sales team actively pursuing mid-year and off-cycle renewals, reducing reliance on January 1 renewals.
Operational Efficiency & AI Utilization:
Claims processing time improved from 30 days to 7-9 days.
Customer service wait times reduced from 2 minutes to 11 seconds.
AI has cut disease detection time from 2.5 years to 6 months, improving early intervention programs.
High Insider Ownership & Management Commitment:
61% insider ownership, with CEO Damien Lamendola personally investing $3M+ into the company.
Management is aligned with shareholders, ensuring disciplined execution.
HireQuest, Inc. (HQI)
🎬 Impact of Immigration Policies on The Staffing Industry
🔷 Positive Takeaways
Franchise-Based Model Efficiency: HireQuest operates a capital-light, franchise-based staffing model, which reduces overhead costs and provides financial stability.
Resilience in Economic Cycles: The franchising model allows for rapid adjustments to economic fluctuations, as franchisees control their staffing levels and expenses.
Growth Through Acquisitions: The company has a proven strategy of acquiring staffing businesses and converting them into franchises, ensuring continuity and reducing customer attrition.
Strong Financial Position: HireQuest maintains a debt-free balance sheet with consistent profitability and high margins, making it well-positioned for growth.
Expansion Opportunities: The company has significant runway for growth, including expanding into adjacent service industries such as security staffing.
BranchOut Food, Inc. (BOF)
🎬 Launching Into The Ingredients Market
🔷 Positive Takeaways
Innovative Dehydration Technology: BranchOut Food uses REV (Radiant Energy Vacuum) technology, marketed as GentleDry, to create high-quality, shelf-stable fruit and vegetable snacks and ingredients at a lower cost than traditional freeze-drying.
Growing Retail Partnerships: The company supplies major retailers, including the world’s largest warehouse club (presumably Costco) and the world’s largest retailer (presumably Walmart), securing strong distribution channels.
Diversified Revenue Streams: In addition to retail, BOF is expanding into the ingredients business, supplying fruit powders and fragments to major CPG companies. A recent ingredient contract alone is projected to bring profitability.
Operational Expansion & Cost Efficiencies: The new 50,000 sq. ft. manufacturing facility in Peru is fully operational, giving BOF a cost advantage in labor and raw materials while increasing production capacity.
Near-Term Profitability: BOF expects to be cash flow positive in Q1 2025 and potentially debt-free by year-end, marking a financial turnaround from prior challenges.
ACCESS Newswire, Inc. (ACCS)
🎬 AI’s Role in Streaming Content & Press Distribution
🔷 Positive Takeaways
Strategic Business Shift: ACCS completed a rebrand from Issuer Direct, transitioning from a compliance-heavy business to a communications-focused model, streamlining operations and improving profitability.
Subscription-Based Growth Model: The company is moving toward a recurring revenue model with flat-rate subscription pricing, eliminating variable costs and increasing predictability in revenue.
Market Leadership in Press Distribution: ACCESS Newswire has grown to become the third-largest newswire service by volume and aims to become the second-largest by year-end.
Debt Reduction & Strong Cash Flow: Following the recent sale of its compliance business, ACCS has significantly reduced debt from $17M to $3.3M, freeing up capital for further expansion and growth.
Innovative Technology & AI Integration: ACCS is leveraging AI to improve content quality, automate distribution across multiple platforms, and enhance analytics, setting itself apart from competitors.
QHSLab, Inc. (USAQ)
🎬 Sales Strategy & Scaling The Business
🔷 Positive Takeaways
Digital Medicine & Revenue-Enhancing Model: QHSLab provides a universal health screening assessment for common chronic conditions such as allergies, mental health, pain, and sleep disorders. The platform generates additional revenue for primary care physicians while improving patient care.
Proven Profitability at an Early Stage: The company turned profitable in recent quarters, demonstrating the viability of its business model despite a small-scale operation.
Significant Market Opportunity: With 250,000 independent primary care physicians in the U.S., QHSLab sees strong growth potential by expanding its client base beyond its current 100 physicians.
Recurring & Scalable Revenue Streams: Revenue comes directly from doctors rather than insurance companies, reducing reimbursement risk. The company earns ~$20 per digital health assessment, $100 per allergy test, and additional revenue from immunotherapy treatments.
Growing Clinical Data Assets: QHSLab has collected 130,000+ patient records, positioning itself for future AI-driven predictive analytics and value-based care initiatives.
Cryo-Cell International, Inc. (CCEL)
🎬 How Cyro-Cell Transformed its Business & Became an Industry Leader
🔷 Positive Takeaways
Leading Cord Blood Banking Provider: Cryo-Cell is the world's first private cord blood bank, offering high-quality stem cell storage services with industry-leading accreditations.
Strong Cash Flow & Dividend Payout: The company generates approximately $8 million in annual free cash flow and currently pays a $1.00 per share annual dividend (14% yield at current prices). However, due to some term uncertainties, we should not assume the dividend is 100% secure.
Exclusive Processing Technology: Cryo-Cell owns the exclusive rights to PrepaCyte-CB, a premium processing technology for stem cell storage, differentiating it from competitors.
Potential Expansion into Third-Party Storage: The company is actively marketing its North Carolina cryogenic storage facility to medical institutions and biotech firms for third-party biological specimen storage.
Growth Through Acquisitions: Cryo-Cell is open to acquiring competitors or businesses in related fields to expand its market presence.
FlexShopper, Inc. (FPAY)
🎬 Capital Restructuring &Rights Offering Explanation
🔷 Positive Takeaways
Strong Growth in Lease Originations: Lease originations increased over 35% year-over-year in December 2024 and 60% quarter-over-quarter in Q4 2024, reflecting strong consumer demand and retailer adoption.
Expansion in Retail Partnerships: Store count grew from ~2,500 at the start of 2024 to 8,000+ locations, significantly broadening FlexShopper’s reach in physical retail stores.
Improved Customer Acquisition Costs: Digital marketing optimizations resulted in a 40% reduction in marketing cost per new customer, allowing for more efficient growth.
High Repeat Customer Rate: 50%+ repeat customer rate, with 90%+ repeat rates among eligible customers, enhancing long-term profitability.
Profitable Q4 2024 Performance: The company reported EPS of $0.05 vs. a prior-year loss, highlighting the effectiveness of recent operational improvements.
Exclusive Financing Niche: Serves subprime consumers (FICO <640) who are often denied traditional credit, positioning FlexShopper as a critical financing alternative.
IEH Corporation (IEHC)
🎬 Pricing Power & Gross Margin Recovery Plan
🔷 Positive Takeaways
Niche, High-Quality Product Offering: IEH specializes in hyperboloid PCB connectors, known for high reliability and durability in mission-critical applications such as defense, aerospace, and commercial space exploration.
Strong Recovery in Revenue: Revenue increased 40% year-over-year in Q3 2025 as the company continues to rebound from prior downturns.
Profitability Trending in the Right Direction: While Q3 2025 was breakeven, this marks a significant improvement from past losses, with further margin expansion expected as price increases catch up to rising costs.
Debt-Free Balance Sheet: The company maintains a strong financial position with $9M in cash and no debt, providing flexibility for strategic initiatives.
Expansion into New Markets: IEH is diversifying beyond defense and aerospace into medical devices, robotics, drones, and autonomous vehicles, reducing reliance on two core industries.
Manufacturing & Capacity Advantages: The company has significant capacity for expansion across its Brooklyn and Allentown facilities, avoiding near-term capital expenditure needs.
Lakeland Fire & Safety (LAKE)
🎬 High Margin Firefighter Gear Decontamination Business Opportunity
🔷 Positive Takeaways
Major Business Transformation: Lakeland has shifted from a slow-growing industrial safety company to a high-growth, top-five global player in the fire protection industry within 15 months.
Aggressive M&A Execution: The company has completed five acquisitions since August 2023, including Pacific Helmets (New Zealand), Jolly Scarpe (Italy/Romania), LHD (Germany/Australia), and Veridian (USA)—enhancing its firefighter gear portfolio and geographic reach.
Deleveraged Balance Sheet: A $46M equity raise (4x oversubscribed) allowed Lakeland to pay down $42M in debt, freeing up capital for future acquisitions.
Expanding High-Margin Recurring Revenue: The company is entering the firefighter gear decontamination and laundering business, a recurring, high-margin service segment.
Strategic Manufacturing Flexibility: The Veridian acquisition provided a USA-based production facility, offering tariff protection and redundancy for global operations.
Intouch Insight Ltd. (INXSF) (INX.V)
🎬 Potential Share Buybacks & Capital Allocation
🔷 Positive Takeaways
Dual-Model Business (Software + Services): Intouch Insight provides both customer experience software (CX) and in-person compliance/mystery shopping services, giving it a hybrid revenue model with recurring and service-based income.
Consistent Organic SaaS Growth: The company’s SaaS business has grown organically for nine consecutive years, reaching ~$1.6M in pure SaaS revenue, with additional seven-figure software revenue from other products.
Strong Profitability Focus: After prioritizing revenue growth in past years, management has shifted focus to profitability, leading to a projected $2M improvement in annual profits over a 12-month period.
Restructured Operations for Higher Margins: The company scaled back lower-margin revenue from its Ardent acquisition, focusing on relaunching its services with higher profitability in 2025.
Resilient & Self-Sustaining Business: Intouch has never raised additional capital since its 2017 $3.5M funding round, and management has ensured that growth remains self-funded with no need for dilution.
Potential for Share Buybacks: CEO Cameron Watt strongly supports a stock buyback program, acknowledging the stock’s undervaluation, though the decision will depend on board approval and capital priorities.
Limited Tariff & Trade War Risk: Despite being a Canadian company, Intouch operates a U.S. subsidiary with offices, employees, and tax payments in the U.S., reducing exposure to cross-border trade risks.
MIND Technology, Inc. (MIND)
🎬 Growing Recurring Revenue From Aftermarket
🔷 Positive Takeaways
Successful Turnaround & Profitability: After years of losses, MIND turned profitable in Q3 & Q4 2024, driven by restructuring, divestitures, and stronger demand for core subsea technologies.
High Gross Margin Business: Gross margins reached 45% in 2024, with expectations to approach 50% through efficiency improvements and increased scale.
Strong Backlog & Order Visibility: The company has a high win rate on its pipeline, with pending orders totaling more than twice its backlog, providing strong near-term revenue visibility.
Recurring Revenue Growth from Services: Aftermarket and repair services accounted for ~40% of revenue in Q3 2024, creating a stable, recurring income base that will grow with an expanding installed base.
Diversification Beyond Oil & Gas: Historically, 50-60% of revenue came from traditional energy exploration, but MIND is expanding into marine survey work, offshore wind farms, carbon capture, and defense applications.
Debt-Free Balance Sheet: After restructuring, the company has no debt, $3.5M in cash, and is now generating free cash flow, strengthening its financial position.
QuickLogic Corporation (QUIK)
🎬 Exit of Competitor Flex Logic & Market Expansion
🔷 Positive Takeaways
First-Mover Advantage in Embedded FPGA (eFPGA): QuickLogic is one of the only companies offering eFPGA hard IP for Intel’s 18A process, positioning it as a key enabler in next-gen semiconductor manufacturing.
Dual Business Model Provides Stronger Growth Visibility: The company operates in two key areas:
Discrete FPGA Chips (high-margin hardware sales)
Embedded FPGA (eFPGA) Licensing (recurring royalty revenue with 100% gross margins)
Strategic Expansion into Aerospace & Defense: QuickLogic is the prime contractor for a U.S. government radiation-hardened FPGA program, a lucrative and long-term growth driver.
High Gross Margin Profile:
Discrete FPGA Devices: ~60-68% margins
eFPGA Licensing & Royalties: ~80-100% margins
Blended Gross Margin Target: Expanding beyond current levels (~60%)
Strong Industry Tailwinds:
AI-driven data center expansion is increasing demand for FPGA acceleration.
The exit of FlexLogix (acquired by Analog Devices) reduces competition and validates the eFPGA market.
Growing adoption of custom ASICs by hyperscalers (Amazon, Google, Microsoft, etc.) creates more licensing opportunities.
Data I/O Corporation(DAIO)
🎬 Shifting Sales Strategy Engaging With Distributors & Supply Chain
🔷 Positive Takeaways
Turnaround in Progress Under New CEO:
Bill Wentworth, an industry veteran and former customer of DAIO, is leveraging his deep knowledge of the market to restructure the company’s approach to sales and customer engagement.
New Sales Strategy Expanding Market Reach:
Transitioning from direct sales to a broader supply chain approach, engaging with contract manufacturers, distributors (Arrow, Avnet), and independent programming centers.
New consultative selling approach reduces sales cycle time and strengthens long-term customer relationships.
Recurrent Revenue Model Development:
Shifting toward a recurring revenue model with service contracts and OPEX-based pricing, reducing lumpiness in sales.
Potential for “Programming as a Service” model, bundling software, equipment, and consumables into a subscription-based revenue stream.
Broadening Beyond Automotive Market:
Historically focused on automotive, DAIO is now targeting higher-growth industries, including:
Service providers (contract manufacturers, programming centers)
Consumer electronics (flash memory programming for VR, gaming, and mobile devices)
Industrial and IoT applications
Potential Gross Margin & EBITDA Expansion:
Current gross margins: 53% (Q4 2024)
Target: Mid-teens EBITDA margin through cost optimization, better data utilization, and cloud-based tools like Snowflake for analytics.
Strong Balance Sheet & No Debt:
$10.3M in cash, zero debt, allowing flexibility in executing growth plans.
Acquisitions to Accelerate Growth:
While organic growth is the focus, DAIO may consider acquisitions in adjacent markets to enhance its product offering and service capabilities.
BluMetric Environmental, Inc. (BLMWF) (BLM.V)
🎬 Strategic Board Addition & Potential California Expansion
🔷 Positive Takeaways
Successful Turnaround & Pristine Balance Sheet:
BluMetric transitioned from financial challenges to profitability, eliminating debt while achieving strong cash flow.
The company operates with zero long-term debt, providing financial flexibility for growth.
Accretive Acquisition of Gemini (September 2024):
Strengthens BluMetric’s water technology division, expands into the U.S. market, and provides a faster sales cycle than legacy government contracts.
Gemini focuses on desalination, potable water treatment, and wastewater systems, primarily serving the Caribbean, island nations, and coastal developments.
Recurring & High-Margin Revenue from Military Contracts:
Canadian military depends on BluMetric for water purification systems on naval ships and land-based missions.
Military & government contracts offer high gross margins (~50%) and long-term stability.
Diversification Across Key End-Markets:
50% of revenue from water tech, 50% from professional services.
Serves military, mining, industrial, commercial, and government clients, ensuring resilience across economic cycles.
Expansion Into Aftermarket Parts & Services:
New strategy to service & maintain existing water treatment systems, creating a high-margin, recurring revenue stream.
A key executive hire from Australia will lead the aftermarket services push.
Well-Positioned for Additional M&A:
Focused on immediately accretive acquisitions, particularly in the U.S.
Will prioritize entrepreneurial businesses with strong reputations rather than struggling turnaround targets.
Strategic Board Addition Strengthens Growth Potential:
Added Mohsen Mortada, former Chief of Staff at the Metropolitan Water District of Southern California, bringing deep industry expertise and potential California market expansion opportunities.
Flexible Solutions International, Inc. (FSI)
🎬 How the Food Grade Polymer Business Was Created
🔷 Positive Takeaways
Breakthrough Food Division Set to Drive Growth:
Announced a $15M-$30M annual contract for a food-grade polymer product, expected to ramp up in ~6 months.
Higher margins and more predictable revenue than legacy business.
Potential to scale food division to $40M+ revenue with current facility before requiring additional CapEx.
Diversified Legacy Business Provides Stability:
Leading supplier of biodegradable polymers used in:
Agriculture (fertilizer efficiency, yield improvement)
Oil & Gas (corrosion & scale control)
Water & Energy Conservation
Core business generates $30M+ annually and provides a strong cash flow base.
Expanding into High-Margin Nutraceutical & Pharma Markets:
Acquired $15M worth of injectable drug manufacturing equipment for $2.3M.
Evaluating partnerships & joint ventures to fund a $20M-$30M production facility (non-dilutive approach preferred).
Could provide exposure to fast-growing GLP-1 (Ozempic, Wegovy) & nutraceutical markets.
Steady Growth in Turf & Ornamental Agriculture Division:
ENP (acquired division) contributes ~$14M annually, growing at 10-15% per year with strong margins.
Complements existing polymer technology applications.
Strong Insider Alignment & Financial Discipline:
35% insider ownership, ensuring management is aligned with shareholders.
No plans for equity dilution—prefers alternative financing for CapEx expansion.
Firan Technology Group, Corp. (FTGFF) (FTG.TO)
🎬 Moving Up The Vale Chain in Cockpit Electronics
🔷 Positive Takeaways
Strong Long-Term Growth Strategy:
CEO’s goal is to double revenue every five years through organic growth and acquisitions.
Sales have grown from $20M to $160M under Bourne’s leadership, with plans to exceed $190M+ in 2025.
Key Aerospace Industry Tailwinds:
Air Transport Boom: Airbus has 8,000+ aircraft on order, Boeing has 5,000-6,000—representing 10+ years of backlog.
Defense Growth: Increasing military spending & procurement contracts continue to provide steady, high-margin revenue.
Expanding Market Share in High-Value Cockpit Electronics:
Moving up the value chain from basic backlit panels to complex cockpit assemblies.
Won $100K per aircraft content on China’s C919 commercial jet.
New contracts with Boeing, Airbus, and Tier-1 avionics suppliers.
Successful Acquisition Integration & Margin Expansion:
2023 Acquisitions: IMI (RF circuit boards) & Holaday Circuits (high-end U.S. PCB manufacturing) expanded defense & specialty PCB footprint.
2024 FLYHT Aerospace Acquisition: Moves FTG into high-margin aftermarket avionics & aircraft connectivity.
Expecting to cut $3.5M+ in costs from FLYHT while ramping product sales & margins.
Improved Pricing Strategy Protecting Margins:
Shifted from multi-year fixed pricing to annual price adjustments or escalation-based multi-year deals.
Helps mitigate labor & material cost inflation while preserving operating leverage.
Resilient Business Model with Geographic Flexibility:
Diversified across commercial, defense, business jets, & helicopters—reducing economic cycle risk.
U.S. manufacturing expansion reduces exposure to tariff risks from potential U.S.-Canada trade disputes.
Ability to shift production between facilities based on policy changes.
Koil Energy Solutions, Inc. (KLNG)
🎬 How KLNG is Increasing Wallet Share With Existing Customers
🔷 Positive Takeaways
Successful Turnaround & Profitability:
Koil has delivered three consecutive profitable quarters, marking a shift from years of losses.
Achieved 27% revenue growth year-over-year in Q3 2024.
Gross margin expanded 40%, with adjusted EBITDA margin reaching 13%.
Diverse Revenue Streams with Strong Growth Potential:
Service Business (High-Margin & Recurring Revenue):
Includes installation, maintenance, and engineering services for offshore energy infrastructure.
Service revenue is time-and-materials based, with no pricing risk.
Product Business (Expanding Pipeline & IP Protection):
Develops subsea equipment including umbilical housings, distribution units, and subsea junction boxes.
Engineering expertise allows Koil to develop custom emergency response solutions in record time (e.g., 24-hour turnaround for critical offshore repairs).
New Growth Opportunities in International Markets:
Brazil Expansion:
Opened a new 180,000 sq. ft. service facility in Macaé, Brazil.
Brazil is the largest subsea energy market, requiring local presence for participation.
Facility will initially focus on services & assembly, with potential for manufacturing expansion.
Europe Expansion (via Strategic Partnership):
Formed an alliance with a Norwegian subsea company to enter the North Sea market.
Provides European presence with minimal upfront investment.
Competitive Advantages in Subsea Energy:
Speed & Responsiveness:
Koil differentiates itself with fast execution & emergency response capabilities, crucial in subsea operations.
Integrated Solutions:
Offers both products & services, allowing bundling opportunities and deeper customer relationships.
Technology & IP Development:
Aggressive patent strategy to protect proprietary subsea products.
Capital Discipline & Scalable Growth Model:
No debt, $3M in cash; evaluating debt financing for rental equipment & service expansion.
Brazil entry structured as a low-risk lease model to avoid large upfront CapEx.
Expanding rental equipment fleet, which provides high-margin, recurring revenue.
BioRem, Inc. (BIRMF) (BRM.V)
🎬 Record Backlog & Visibility
🔷 Positive Takeaways
Strong Execution on 2022 Growth Plan:
BioRem set goals to double EBITDA, maintain cost parity, and reduce debt, and has largely met these targets.
EBITDA has nearly doubled since 2022, despite inflationary pressures.
Backlog reached an all-time high of ~$62M, providing 18+ months of revenue visibility.
Expanding Product Portfolio to Capture Market Share:
BioRem expanded beyond biological solutions into physical & chemical air treatment, increasing its addressable market by ~70%.
New physical & chemical scrubber products have contributed ~$25M-$30M in new orders since their launch.
Noise attenuation & water degasification solutions introduced to further broaden revenue streams.
Recurring Revenue from Service Expansion:
2000+ installations provide a large base for maintenance, refurbishments, and consumables sales.
Service contracts are multi-year, high-margin, helping smooth revenue volatility.
Market opportunity in service & consumables alone is estimated at ~$150M annually in North America.
Middle East Expansion & International Growth:
Won $12M+ in Middle East projects in 2024, including a waste-to-energy facility.
Further multi-million-dollar projects expected in 2025, reinforcing regional momentum.
Financial Strength & Prudent Capital Allocation:
$7.2M cash, $2M debt—financially stable while maintaining strategic flexibility.
Low-cost debt (~2% interest rate), allowing capital to be used more effectively elsewhere.
No plans for equity dilution, prioritizing self-funding growth & strategic acquisitions.
TSS, Inc. (TSSI)
🎬 Building a Culture That Wins
🔷 Positive Takeaways
NASDAQ Uplisting & Stock Performance: TSS Inc. transitioned from OTC to NASDAQ and has seen significant stock appreciation, reaching a peak of 3,500% growth.
Turnaround Leadership: Darryll Dewan emphasized a strong leadership culture, focusing on hiring the right people, setting clear goals, and executing plans effectively.
Operational Improvements: Under Dewan’s leadership, the company streamlined factory operations, improved relationships with key partners like Dell, and enhanced internal process control.
AI & Data Center Growth: Th
e company is well-positioned to benefit from increasing power demands in data centers, particularly with the shift to direct liquid cooling.
Strategic Expansion: TSS Inc. is looking to diversify through partnerships in modular data centers and AI infrastructure services.