2025 conference call. At this time, all lines are in English and only loud. Following the presentation, we will conduct a question-and-answer session. If anyone has any difficulties hearing the conference, please call 040-300-660 at any time. I would now like to turn the conference call over to Brandon Chao, Investor Relations. Please go ahead.
Thank you, Operator. Welcome, everyone, to BluMetric Environmental's Quarterly Earnings Conference Call. This call will cover BluMetric's financial and operating results for the 2025 second fiscal quarter ending March 31, 2025. Following our prepared remarks, we will open the conference call to a Q&A session. Our call today will be led by Scott MacFabe, BluMetric's CEO, and Dan Hilton, the company's CFO. Before we begin with our forward remarks, I would like to remind everyone that some of the statements on this conference call may be forward-looking statements. Forward-looking statements may include, but are not necessarily limited to, financial projections or other statements of the company's plans, objectives, expectations, or intentions. These matters involve certain risks and uncertainties. The company's actual results may differ significantly from those projected or suggested in any forward-looking statements due to a variety of factors which are discussed in detail in our regulatory filings.
There may also be references to certain non-IFRS measures such as EBITDA, backlog, working capital, free cash flow, and net cash. These non-IFRS measures are not recognized measures under the International Financial Reporting Standards and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Please hear disclosures for further information and reconciliations of these non-IFRS measures. I will now hand over this call to Scott MacFabe. Please go ahead, Scott.
Thank you, Brandon, for the introduction. Welcome, everybody, to our second quarter 2025 earnings call for BluMetric Environmental. We appreciate all of you taking the time to join us on today's conference call. As per usual, I'll start off by providing an overview of the quarter, and Dan will go over all of our financial details in more detail. Firstly, I'd like to start off by giving those who are new to the story a reminder of what we do. BluMetric creates a better environment for business. What does that mean? BluMetric is a full-service engineering, WaterTech, and environmental consulting firm focusing on agile water and wastewater systems and professional services. Through a track record that spans over 45 years, we've evolved into a full-service integrator of environmental solutions in the fields of water and wastewater treatment and professional environmental services.
We aspire to be the environmental solutions and WaterTech company of choice globally. Also, I'd like to provide a quick update on nomenclature as we concluded a reorganization of professional services and leadership summit within the fiscal quarter. Firstly, our two business segments are WaterTech and professional services, which is now being presented separately in the financial statements. Within WaterTech, we have WaterTech Canada and WaterTech USA. WaterTech Canada encompasses our manufacturing in Carp, Ontario, and builds the military mission-ready water systems and services and supports for those products. For WaterTech USA, it encompasses Gemini Water, who has a manufacturing footprint in Gainesville, Florida, and sells and services stationary desalination and wastewater treatment systems to customers in the Caribbean and the USA . Now, let's discuss this quarter in a little more detail.
The quarter saw a significant increase in revenues due primarily to additional growth in revenues of WaterTech USA. We continue to see strong demand for fixed-based desal systems in the Caribbean region, which is where we continue to execute. There are other opportunities emerging in wastewater treatment as well. As we discussed in our last call, we've signed the lease for a new manufacturing facility in Gainesville, Florida. As of today, we're completely now operational and working to deliver products at the new location. This is a testament to the level of investment we've made into the business and its accelerated integration, resulting in doubling of their scale. We're also working to potentially enter new markets and partnerships that we think will give us access to complementary technologies and applications that would otherwise be out of reach.
At BluMetric, it all comes down to our people, and we're excited to hit the ground running with our key hires for WaterTech USA, who will work on augmenting sales, streamlining product delivery, and establish more significant operations and maintenance capabilities. We know that our WaterTech USA business has been getting a lot of attention lately, and we're also seeing good progress in our military market. As you've seen, we've received the official notice to proceed with the Rheinmetall Canada contract to start production for our new ASWAP systems. These are to support increasing production demands. In order to do so, we've signed a lease for a new 9,000 sq ft facility in Carp, Ontario, just down the street from our existing 11,000 sq ft site.
These investments will be important to ensure we can deliver on the partnership and give us more capacity to service the contract renewals from the Canadian Department of National Defence. We continue to be patient with securing contracts with the military market, as it has taken longer than expected to bring them in. There continues to be a strong emphasis for Canada and other countries to spend more on their military and, hopefully, this added pressure helps expedite these developments. We believe that our success in this market will hinge on our continued ability to form key relationships within the main target markets in Canada, Europe, and the United States. These are all areas we feel relationships are deepening, and we've had activity recently submitted relative to proposals for our systems.
As for professional services, we saw project delays, mainly due to the prolongation of the Canadian federal government and subsequent federal election. This had the most significant impact on our government market, which was down 34% in our revenues from the same quarter in the prior year. This led to an increase in non-billable labor and consequently lower utilization, lessening our profitability. We believe that this will improve now that the election is over and the second half of the fiscal year is seasonally our strongest period for professional services. We also are investing into infrastructure market and personnel gaps to drive future potential growth. Even for the quarter, it improved slightly, which was offset by the extra costs associated with the lower utilization in professional services.
Our success in the coming quarters will be predicated on our ability to deliver on our record order book, strive for manufacturing excellence, and improve the growth and profitability of professional services. In conclusion, the remaining half of fiscal 2025 continues to be critical for execution and efforts to drive excellence in sales, business development, and manufacturing, as we're supported by all these developments and partnerships. We believe demand is strong for our WaterTech and continue to make strategic investments in our capacity, service capabilities, and sales and business development efforts. We're a unique company with our combination of leading WaterTech, which is benefiting from the growing demand for resilient and decentralized water solutions that continue to build our position. I'd like now to hand it over to Dan for a more detailed overview of the financials. Dan, please go ahead.
Thank you, Scott. Just as an aside, I've dropped off a couple of times. We have a call or a storm coming through, Scott, so if I do drop off again, please continue on my behalf if you don't mind. I will be presenting BluMetric 2025 fiscal second quarter results in more detail. Revenues for the second fiscal quarter was CAD 15.9 million compared to CAD 7.1 million in the prior year. As Scott mentioned, the revenues increased primarily due to the rapid growth of WaterTech USA, which has surpassed our original expectations. The investments in additional and improved consolidated manufacturing space, coupled with key new hires, will allow this group to maintain growth capacity for its current products and enable the establishment of an operations and maintenance team to capitalize on the strength of our existing customer relationships in the region.
Across the company's key markets, the commercial and industrial market revenue increased year over year, mainly due to WaterTech USA. The government market, traditionally our strongest, saw a material decrease due to a pause in spending by the Canadian government's prorogation and election cycle. 2025 revenues are CAD 1 million lighter than the same period in 2024. This has resulted in a temporary utilization gap, with Q2 2025 utilization in the professional services practice sitting 6% lower than the same period in 2024. Management believes that with the election behind us and the resumption of parliament, the contracts will be awarded shortly, and utilization will return to its historic levels. This, coupled with the fact that we are heading into our traditionally busiest cycle, provides an expectation for a strong recovery in this business segment. May has already shown a 3% increase in utilization.
For every 1% utilization in this segment, we can expect approximately CAD 120,000 impact to EBITDA. The military market increased due to the timing of the maintenance of the ROQ units for the Canadian military. It is important to note the production of the ASWAP systems with Rheinmetall Canada has started in fiscal Q3 and will continue for approximately six quarters. Lastly, the mining sector has decreased slightly due to a general sector slowdown. We generally expect to see fluctuations in our core markets as we continue to execute, and some will make up for others depending on the quarter. Having a strong presence in our core markets helps to manage these natural fluctuations in the business. Our gross margin was 27% for the fiscal quarter compared to 43% in the prior year.
The decrease in gross margin is attributable to the change in sales mix, whether it's been a material increase in the relative sales of WaterTech over professional services during the period. Operating expenses for the fiscal quarter came in at CAD 4.3 million compared to CAD 2.9 million in the prior year. The increase is due to the operating expenses attributable to Gemini, which are proportionally lower than the accretive revenue growth producing economies of scale. This is also combined with the increase in non-billable labor in professional services due to the timing of contracts and a softening of the market caused by macroeconomic drivers related to the recent changes in the government and Canada. EBITDA for the fiscal quarter increased to CAD 0.6 million compared to CAD 0.5 million in the prior year.
The increase in EBITDA is mainly due to the strengthening in the WaterTech segment as a result of higher revenue recognition associated with the delivery of hardware on larger Gemini projects, with minimal associated increase to operating expenses. This was offset by an increase in the overall operating costs related to underutilization of professional services, primarily tied to the delay in the awarding of government contracts related to the federal election. Early indicators are already suggesting an improvement in utilization in fiscal Q3. A net loss of CAD 60,000 was recorded for the fiscal quarter compared to net earnings of CAD 117,000 in the prior year. On March 31, 2025, BluMetric had a net cash balance of CAD 2.2 million compared to a net debt balance of CAD 157,000 at September 30, 2024.
As of March 31, 2025, the company had approximately CAD 6.3 million in cash availability between its operating line and cash balances and was not bound by any debt covenants. Overall, 2025 is shaping up to be a transformative year for the company as we start to see some of our investments paying off. We need to continue our momentum in WaterTech while not forgetting about professional services where strategic investments are needed and being made. Our production capacities in Canada and the United States are increasing nicely and can support new contracts for WaterTech. Our new ERP system initiatives, along with others, are going well and are expected to be completed this calendar year. These developments will help ensure that better decisions can be made by our front line and strengthening our infrastructure for the long term for clients' success and an improved bottom line.
We are world-class environmental consulting and WaterTechnology delivered by world-class people who do meaningful work every day. We continue to believe that 2025 is an inflection point for the business. Water is ever scarcer, and the environmental concerns of our clients continue to require our world-class assistance. I'd like to thank everyone for taking the time to allow us to present our results today and now hand it back over to Scott.
Thank you, Dan. That was a great update. I echo the excitement surrounded around the opportunities that lie ahead of us this year. We'll now take questions from call participants, and we'll pass it back over to the operator.
Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press the star followed by the one on your touch-tone phone. Should you wish to cancel your request, please press the star followed by the two. If you are using a speakerphone, please lift the handset before pressing any keys. Once again, that is star one should you wish to ask a question. Your first question is from Steve Cameron Mayer from Kranitz Securities. Your line is now open.
Good morning, guys.
Good morning, Steve.
Good. I just wanted to explore the EBITDA margins here. If I calculated right, the impact from the government was about CAD 1 million in revenue, and then 1% is about CAD 120,000 impact to EBITDA. Is it fair to say that you lost about CAD 400,000 in EBITDA in the quarter due to the shutdown of the Canadian government?
Yes, that's correct. What happens, you imagine a business like ours, professional services, obviously, and it has historically been core, and we've got a fantastic talented pool of people. When we get into situations like this where there's some fluctuation in demand for whatever the reason, decisions have to get made as to whether it's better to carry those costs and ride out the storm. In this case, we've seen early indications now that the market is turning. The government's procurement system is starting to release contracts. We're excited to see that. May has already suggested a 3% improvement in utilization, implying that we're starting to see some of these contracts hit our books. Your math is correct. It's about CAD 400,000-CAD 450,000 is the impact of carrying the additional costs during that quarter.
We believe now the question is going to be whether or not we can make up that difference over the balance of the year. Certainly.
Oh, sorry. It sounded like the storm might have rolled through on Dan. Dan, are you there? No?
Oh, I'm sorry if you can't hear me. Did I cut out?
Yep. Yep. There you go. You're back.
I'm sorry. I'm not sure where I cut out, but I would agree with your math, Steve. It's CAD 400,000-CAD 450,000 type range for carrying those additional costs. In a business in our professional services space, a big investment is our people, and we don't want to lose those people. We're glad to see that the government mechanism for procurement is starting to release these contracts. We'll keep a close eye on that, but hopefully a temporary situation that's now in recovery.
Okay. No, that's very helpful. Thanks. I know you don't give guidance here, but we're looking at the Rheinmetall contract ramping up here through your fiscal Q3. The St. Kitts contract seems to be humming along as well. How do you see the back half of the year playing out margin-wise? Obviously, they got a little bit depressed here in fiscal Q2. Do you expect them to expand close to historical margins, I guess?
Yeah. Certainly, the sales mix impacts the margin, and WaterTech does have a slightly lower margin than professional services. That being said, I would suggest that overall, we do expect to see an increase in margin. The professional services now coming into our busiest cycle during the year Q3 and Q4 are typically when we have the highest number of professionals deployed out in the field and doing work for our clients. That will certainly boost margins. The St. Kitts project, which is quite large, as you mentioned, all of the equipment has been procured and moved on-site. We are now entering a phase that requires human intervention, the hookups, the fittings, the deployment of that system. Those margins will be a little bit higher than the margins we get strictly on the resale of equipment.
The Rheinmetall project does have good margins baked into it. I think we'll see generally an improvement in margin. I'm not sure we'll get back to the same level of margin that we had historically just because we have so much WaterTech, but certainly much higher than Q2. Our expectations are to achieve a 10% EBITDA at CAD 100 million top line. That's what we're growing towards. We do think that the benefits of some of these economies of scale that we're realizing as we grow will continue to fall to the bottom line. That's our target at CAD 100 million top line.
Okay. No, that's very helpful. Thank you. Maybe just one more if I can. Just on the St. Kitts contract, you mentioned most of the equipment's in place, and we're just sort of putting it together now and installing it. How much is left on that contract, both monetarily and time-wise? What's the plan to replace that? Is there backlog already lined up to get in there, or do you need to get some more contracts to replace that?
Yeah. A couple of interesting questions there. Certainly, the recognition of revenue has been fairly consistent. It is burning at about $1,000,000 a month, approximately, that one specific project. We would anticipate still CAD 3,000,000-CAD 4,000,000 to get recognized on that project over the coming months. It goes live at the end of August or early September. In terms of backfilling, we had historically at Gemini not had a strong sales and marketing arm. Most of the revenues or contracts came in by word of mouth. That continues to be the case, and they are getting regular calls. We are at a run right now from the backlog perspective of about $1,500,000 US per month, which would see us consistently kind of close to CAD 20,000,000 through the year.
We recently did invest in a couple of two, I would say, strategic hires within that organization, one on the sales side, so that we are no longer dependent on the general manager to take advantage of his relationships and network as the sole means for generating revenue. We now have started just recently to have some outward marketing initiatives, and we think those will certainly pay off. There are a number of islands in the region that have taken note of the work that we have done in St. Kitts, and we have got a number of requests to bid on similar-sized projects. Hopefully, some of those will materialize. In addition, earlier this week, we had a new hire who is an individual that moved his family from Australia to help us develop an operations and maintenance program, which that organization has never had.
In Canada, in our WaterTech group, we do a lot of field service rep maintenance-type work. It's good, sticky revenue, high-margin revenue. We're just introducing that concept now into WaterTech in the U.S., and we have a leader for that group. There are a number of projects that we're looking to try and, I guess, capitalize on where we've got clients, existing customers who have asked us to take on long-term O&M contracts. We hope to be in a position to announce those shortly. To the broader question, can we replace the revenue from St. Kitts? I believe we absolutely can. I think we're seeing some indicators suggesting there's continued strong demand in the marketplace. In addition to that, we plan on laying on top an operations and maintenance practice that I think will be lucrative in the long term.
Okay. No, that's great. While I got you, maybe just one more on that O&M. What's the opportunity there? Is there a contract? Is there a term limit, or what do you expect the revenue opportunity versus capital costs on that operations and maintenance business?
Yeah. We'll have to see how it plays out. But historically, if we use our Canadian experience, about 15% of the cost of the equipment we have been able to roll into an O&M contract on an annual basis. Over the life of a piece of equipment, the O&M contract is far more lucrative than the actual sale itself. On an annual basis, as an example, just to make the numbers easy, if we had a CAD 1,000,000 piece of equipment that was deployed, we would expect something in the order of CAD 150,000 per year as an O&M contract to ensure that equipment runs smoothly. As our bank of equipment that we've deployed becomes larger and larger, we're constantly layering on that recurring revenue stream. It does tend to be sticky. None of our clients want to be operating the equipment that we're installing.
That's not the nature of their business. I'll give one example. We have a very large cruise line in the U.S. that has seven private islands. They're in the business of creating experiences for people, not managing water. They have approached us with an opportunity to take over the operations and management of all seven islands. In that particular case, the contract value is a couple, a few million dollars. It's quite large. We have not negotiated the final price yet, so I would not want to lead the market. It is a material aspect to the business that I think will continue to grow over time and create the very steady revenue flow.
Okay. That's great, guys. I appreciate the time. Thanks. That's all I had.
Thanks, Steve.
Thank you. Your next question is from Craig Wilson from Beacon Securities. Your line is now open.
Good morning, gentlemen. Great to see continued upward trend in revenue in the quarter. That was great.
Thank you.
Just quickly on the you guys ended the quarter with net cash of CAD 2.2 million. You're in a growth phase here, both in Canada and down in the U.S. at Gainesville. Do you need to use some of that cash to build out their facilities at Carp and down at Gainesville?
Let me start with both of those locations. The increased capacity results in increased revenue. The necessity to invest is really to accommodate a higher run rate. I do not say they pay for themselves, but there is an element of initial investment, certainly, to get things started and rolling. I think that is part of our story with when you look at how things have evolved with Gemini. They went from 10,000 sq ft facility to 25,000 sq ft. We doubled the business in seven months, staff-wise, even more so on footprint. The footprint can accommodate a CAD 30 million run rate on an annual basis. We look at it as cost-benefit, and we are pretty frugal with our investments. I mean, we understand that there is a necessary attention to EBITDA. We have had the very same attention.
At the same time, we do have to, along the way, make some strategic investments. It is, as we say, one foot on the brake, one foot on the gas constantly to make sure that we are driving this thing efficiently and managing our available cash as well very strategically.
Yeah. That makes a lot of sense. Thanks for that. Just one more on kind of along those similar lines, I guess. In the past, you guys have talked about pre-ordering some materials to try and stay ahead of the tariffs. Was that the case in Q2, or are you kind of feeling good on that front?
Yeah. Certainly, if you want to.
Do you want to update that one?
Yeah. I'm hoping you can hear me. I'm never sure if I'm cutting out here. I apologize. The experience in Q1, I think, was trying to get ahead of some uncertainty with the election. I think we've established now a baseline for how we're going to operate going forward. We no longer have that situation where we're trying to buy anything in advance, and that did not happen in Q2. We are fortunate that for sales into the Caribbean, we can bypass the U.S. procurement system and sell directly from Canada. That gives us a bit of a hedge with any potential uncertainty related to tariffs. For sales in the United States, whether that's Texas or into Florida, it appears that the clients are willing to bear the additional cost, which we've estimated to be about 13% right now.
We don't anticipate that it'll have any material impact on the business.
Excellent. Okay. Thanks, Dan. I'll leave it there for now, guys.
That's great.
Thank you. Once again, please press star one should you wish to ask a question. Your next question is from Jean Louis. Your line is now open.
Gentlemen, good morning.
Hi, John.
Good morning, George.
I think it's mostly been covered, but I just wanted to confirm. The gross margin was 27%. In the past, you have had higher numbers in mind. Do you think this is the low watermark, so to speak? And do you have a percentage in mind going forward?
Yeah. Longer term, when we've modeled out at the $100 million mark, we've got a few months still ahead of us before we get to that number, obviously. The anticipated settling, just based on the sales mix between the two groups on the gross margin side, is 35%. We do anticipate that margin level to increase. On the EBITDA side, we believe it's very achievable to get north of 10%. I can maybe reference some of our historically public companies' competitors in our space have been able to get slightly better than 10%, closer to 15. There are economies of scale to be had for sure. In the next, call it, year to two, our ambition is to get our EBITDA north of 10% and to stay north of 35% on the gross margin.
Okay. Perfect. Thank you. Lots going on. I'm just curious, how many employees do you have now? Do you think you're completely staffed up, or is there more to go? Are they all permanent, or as far as costs go, of course, I'm thinking, but?
I think the current number is around 225 in that range. We have some, we always bring a stable of co-op students in. They're deeply deployed and quite financially positive. May end up being new hires, right? That's how we often like to groom and bring in new talent. Hopefully, we've demonstrated over the years strategic frugality. We don't look to bring in more overhead and know immediately it's going to affect our bottom line. I think the challenge we've got right here, especially Dan and I have tried to point out, you can't make up the revenue when you have stalled contracts if you let the people go. That capacity is gone, and you really can't drive that into sort of new efficiencies because the skill mix may not be necessary or the same.
From the professional services game, the last thing you want to be known for too is a quick trigger, cut people, and then try to hire them all back in a month because then you just become that company that has no gravity to it, and we know our people are really important. It is a bit of a challenge sometimes, and we have to cross over these bridges where we see things happen, like new government. As Dan pointed out, I think the one foot on the brake, one foot on the gas analogy is never more true. Now we're hitting the gas, and we're starting to see that uptick, and we're starting to recover that revenue that we had, production of revenue delayed by those contracts. We have moved forward. We're always reevaluating the skills mix, the market conditions. We benchmark with our competitors.
They're feeling and seeing the very same things we are, which it's like misery loves company, perhaps. At the end of the day, we have to be really strategic and almost surgical when it comes to staff reductions. Frankly, we have done some in the last quarter. We really cut down our hiring. We often do not replace when someone retires. We have seen some of those things, but it's not like we're going to take out 10% of our labor costs and then immediately see a jump commensurate in revenue. It does not often work that way. Often what happens is you see more people leave, and then you do not get them back.
Yeah. No, appreciate it. You have got a great history of profitability, so. Last question, and just, it is a general question. It is in the PR. Gemini is also looking at strategic partnerships that could offer access to new customers, applications, technologies, and geographies. Can you flesh that out a little bit more? Is there anything in particular, or?
Yeah.
Thanks.
Yeah. Yeah. To the extent we can talk about it, John, when we're looking to really take advantage of what we have in hand and what we could do on a broader basis to be a more full-service water provider, there are other aspects of the supply chain that come into the mix. What we currently have now, we've pulled together design systems. It's a very consistent process and designs. We scale them up or down as needed. Things like tankage, different key aspects of the designs, things like that come into play. To the extent that now, as we grow the company, specifically in the States, the gravity that's coming to BluMetric or from a lot of the providers or auxiliary providers that want to be part of it.
That is a really interesting dynamic whereby we can grow different aspects of the business, not necessarily selling hours on that basis. Looking at the future, we can selectively have consideration and discussions with those aspects of a design that we do not typically produce, but we buy. That is an interesting development. Also, on the O&M side, we are really excited about that because, as Dan mentioned, that is the long-term sticky revenue. These clients, it is not their core competency. We would love to be able to design, install, and operate those systems for those clients. Even those systems we did not design, to operate for those clients because, again, that is not what they really want to do.
How you build that business out and the tools that you need, the telemetry you might deploy to make them even more efficient in remote sites, that's all part of the story.
Okay. Cheers, guys. I appreciate it. Great work. I look forward to the next queue. Thank you.
Thanks, John.
Thank you. Your next question is from Ian Gissell from IFCM. Your line is now open.
Thanks. Congratulations on the quarter in progress. The one question I had might tie in with your answer that you just gave, but I was curious if you could talk a little bit about repurposing some of the Gemini technology that is used in the Caribbean to sort of attack the large opportunity in the small and mid-sized municipal opportunity market here in the United States. I'm just curious to hear you talk a little bit about that.
No, that's a great question, Ian. Great to hear your voice. One of the, I would say, strengths of Gemini is they're extremely efficient at delivering systems up to around, say, 5 million gallons per day. Those systems are not necessarily the target market for the big, big competitors. It's very difficult for them to deploy on an efficient basis. We often now can, from signing a contract to turning the tap on, can be eight or nine months, which is just unattainable for those bigger companies. That is a bandwidth or a target market that is pretty fertile, and the clients are funded. Our ability to do that efficiently and reproduce that result makes us very competitive. When you look at coastal communities or island nations, that's a pretty strong market. It's a very strong market.
The other side of it too is we talk about what we can do to improve the telemetry and integrate technology in remote areas that have a difficult time finding competent technologists to operate the equipment. You build out an O&M business that can support what you design and install. You have telemetry to manage and handle that from afar, and then you have key staff to support as needed on site when necessary. It is a bundled business that really, from the Gemini side and the USA side, has not really been deployed yet. It is a natural adjacent that fits perfectly with what we are doing and growing now. As mentioned, we hired a good friend of mine who is stepping down as the, not controller, but the managing director at the Southern California Water District.
He's the person who's responsible for all water districts from LA to San Diego, mostly in Mercata. In his role, as he's stepping down, as a water expert, we can sit down and say, "What are the five key water districts that we could really effectively compete in compared to perhaps what's in state? Or who can we team with who would benefit by our ability to execute the way we can with systems we know?" It's a pretty exciting way to grow. I think it's a natural extension of the business. It doesn't stretch us too far. It's just starting to all come together. We're pretty excited.
Thanks, guys. Appreciate it.
Thank you. There are no further questions at this time. Please proceed.
Excellent. Thank you, Operator, and all that have joined the call. Definitely appreciate your time. We hope we've answered all of your questions. Most certainly, if you have any further consideration or questions, please send them to Brandon Chao, our IR consultant, and we will look forward to responding post-haste. Until our next call, we wish you all well, and we'll continue to work hard to improve our business going forward. Thank you.
Thank you.
Thank you. Ladies and gentlemen, the conference has now ended. Thank you all for joining. You may now disconnect your line.