Earnings Call: Q2 2021

Aug 17, 2021

Ladies and gentlemen, and thank you for standing by, and welcome to BIO key's International Second Quarter 2021 Conference Call. During management's prepared remarks, all participants will be in a listen only mode. Afterwards, listeners will be invited to participate in a question and answer session. As a reminder, this conference is being recorded today, Tuesday, August 17, 2021. Would now like to turn the call over to Ms. Kimberly Johnson, BIO key's Vice President of Product. Please go ahead, ma'am. Thank you, and thank you for joining our call this morning. With me on today's call are BIO key's Chairman and CEO, Mike DePasquale Chief Revenue Officer, Fred Corsentino and our CFO, CeCe Welch. I'd like to remind everyone that today's conference call and webcast may contain forward looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of these statements. Words such as estimate, project, expect, anticipate, believe, Think, plan, may or will or similar words typically identify and express forward looking statements. Such forward looking statements are made based on management's beliefs and assumptions made using information currently available pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. For a complete description of these and other risk factors that may affect the future performance of BIO Key, please see Risk Factors in the company's annual report filed on Form 10 ks and in other filings with the Securities and Exchange Commission. Listeners are cautioned not to place Undue reliance on forward looking statements, which speak only as of today's date. The Company undertakes no obligation to revise or disclose revisions to such forward looking statements to reflect events or circumstances that occur after today. With that, I will turn the call over to Mike DePasquale. Mike? Thank you, Kim, and good morning, and thanks to everyone for joining our call today. After my prepared remarks, I'll turn the call over to Fred to review some of our key initiatives, followed by Kim and then Cece will briefly review our financial results and solid balance sheet position. In past calls, we've discussed the favorable work and study from anywhere trends that have Rapidly increased demand for the identity and access management solutions that we provide. We've also reviewed core capabilities that differentiate our solutions, including our industry leading biometric capabilities and our support for a broad Array of other identification factors that allow our solutions to easily integrate with most customers' existing infrastructure. These factors continue to support our optimistic growth outlook. Through the first half of twenty twenty one, Our performance is showing growth and progress we envisioned following last year's recapitalization and the strengthening of our team and our product offerings, including the acquisition of Portal Guard's parent company. In particular, we are seeing From our on premise solutions to our cloud based software as a service or what we call ID as a service or IDaaS. We are also seeing We expanded our reach to over 55 Higher Ed customers in the California College System and we continue to migrate other colleges and enterprises to our Portal Guard IDES offering. For example, Rio Hondo College selected our IDES platform to improve the security and user experience for its over 19,000 students, enabling them to securely and seamlessly access More than 20 of the school's enterprise wide applications. Regarding BIO key Africa, After starting initial hardware shipments in Q1 to support our large scale ID projects in Nigeria, The reemergence of COVID-nineteen challenges caused the suspension of activity impacting Q2 shipments. Though we continue to expect a reacceleration of activity in these efforts, it's very difficult to predict the exact Timing with certainty, though we do expect to recommence at some point in Q3 and through the remainder of 2021. As I've mentioned on each of our recent earnings call, the challenge is balancing the equipment and services required with the availability of cash that is flowing through to our partners. The good news is that we are now in process of receiving bank guarantees So that BIO key will be paid directly by the bank for what we deliver through to the partners and other service providers that are undertaking the mass enrollment and verification activities in Nigeria. The World Bank is now pushing the funds down to the National Nigerian Banks to accelerate the deployment process, much of which has been held up because of funding. This is a seminal event because it now means we have surety of payment as the contracts evolve, reducing or eliminating any risk Our Managing Director in Nigeria has been heavily engaged in this process over the last 30 days. As for our financial performance in the quarter year to date, we were able to increase revenue Q2 revenue by 2 23% And revenue for the 1st 6 months of 2021 is up 2 47% versus the year ago periods. The performance keeps us on track to achieve our full year revenue guidance of $8,000,000 to $12,000,000 the midpoint of which would represent growth of 2 50 Percent over 2020. We continue to position BIO key to achieve profitability within this revenue guidance range. However, that would depend on the mix of hardware and higher margin software revenues. Given our strong balance sheet, presented by our Africa initiatives. We remain very excited regarding our prospects for the balance of this year. Let me now pass the call to Fred to highlight a few key business development highlights. Thank you, Mike. As you have heard over the past several quarters, BIO key is focused on building a sustainable, high margin, recurring revenue business that leverages our technology strength and the benefit of the Software as a Service business model. We have started See the benefit of this transition in our Q2 6 months revenue performance. And now I'll provide an update on the key initiatives that are driving this progress. First, our Channel Alliance Partner or CAC program continues to expand as we were able to add over 40 new partners in the first half of 2021, bringing our total to over 100. We expect this program, which substantially expands our sales and marketing reach on a global basis, to be a key part of our long term growth, particularly as it cost effectively expands our reach into new customers, new verticals and Geographies. Earlier this year, we extended the program beyond system integrated and value added resellers to include Managed Service Providers, MSPs, and Managed Security Service Providers, MSSPs, as they provide an ideal fit with our sales and marketing objectives. Though we had less than $100,000 of revenue derived from this emerging program in Q2 'twenty one, We have built a pipeline of $1,600,000 of opportunities targeted for the second half of twenty twenty one. This includes anticipated revenue from a new agreement with a large Silicon Valley based IT distributor that we expect to commence in Q3. As we work to further expand the scope of this core program, we expect to provide further updates on our progress. Turning to our cloud based Portal Guard solution launched in Q4, which we call Portal Guard IDaaS or Identity as a Service, We are very encouraged by its progress as most customer prospects are interested in having their new IT investments in asset light infrastructure with low upfront costs. We continue to see strong demand for Portal Guard IDaaS, particularly in higher education At certain enterprise markets that are grappling with security challenges related to the sudden increase in remote access demands for critical data and applications from outside the enterprise firewall. Our attractively priced cloud IAM solutions support A wide variety of multi factor authentication options, including BIO key's core biometric and patented capabilities. Approximately 10% of about 200 active Portal Guard on premises customers have been migrated to our cloud solution, And we expect this penetration to steadily increase in coming quarters, building our base of more predictable recovering revenue software subscription revenue. Innovation and new product development remain a core element of our growth strategy. And during the Q2, we launched our mobile app, BIO Key mobile auth with palm positive, a touchless palm scanning technology for iOS and Android mobile devices. This easy to use app requires no specialized hardware as it utilizes the device's camera to offer fast registration and enrollment, while providing a very secure biometric factor to enable single sign on solutions that streamlines logins. We plan to add other biometric modalities such as facial authentication and voice recognition to expand biometric and multifactor authentication options. In Q2, Mobile Health was selected as the winner of 2021 Technology Innovation Award for Biometrics by Lusentel, a premier market research and management consulting firm. MobileLoft builds upon our substantial biometric offerings and Palm Positive adds a touchless biometric capability to the 16 authentication factors already supported by our Portico platform. We also introduced our SSL Concierge product, which eliminates passwords for sick client applications or applications that run from the client side where security is the on the local server. And we were awarded the 18th patent for continuous biometric authentication, further expanding our IP library and providing another new method of authentication. Continuous biometric authentication is somewhat similar to Behavioral recognition as it uses continuous biometric readings for more robust ongoing authentication versus a single point of time, typically at the start of a computing session. We're excited about these next generation capabilities and continue to focus on developing solutions that deliver great value to our customers and drive our continued top line growth. Now, I'll turn the call back to Kim Johnson to review some recent customer wins and other marketing related updates. Great. Thank you, Fred. As Mike mentioned, we had several significant customer announcements in Q2. We added another large outsourced call center customer to implement biometric authentication with a 500 user pilot that could grow to 20,000 users. We increased our footprint in higher education to over 55 colleges within the Foundation for California Community Colleges System with the addition of Mendocino College as a new customer. The Rio Hondo College IT team selected Portal Guard in Q2 as well to improve their end user experience by streamlining access to critical applications using Portal Guard's single sign on capabilities, while also having the flexibility and security and the wide variety of multi factor authentication options that our systems provide. As Fred mentioned, we are also focused on migrating Portal Guard customers to our IDaaS software model. We are increasing our direct customer communications to drive such IDaaS migrations And I've already seen at least 5 migrations due to this direct outreach, including Bardstown Community College and Southeastern Illinois College. We will be working to expand our IDaaS penetration in coming quarters. The benefit of the IDaaS solution is that it allows customers to move their IT off premise and benefit from the reduced resources required to host and maintain a system. For BIO key, it creates a new recurring revenue stream that will provide greater predictability to our business as the program builds. In Q2, we added 2 technical associates to further expand our customer services team and support future growth in the business. We hired our 1st dedicated business development representative for lead development and we executed several lead generation campaigns, which included multiple webinars, including a Portal Guard IDaaS virtual demo, and we were a proud sponsor for the EDUCAUSE cybersecurity showcase in order to build our brand visibility before key customer prospects. We also hosted our first CAT program quarterly update webinar to our valued channel partners to increase awareness around BIO key and our solutions. In addition to webinars, we continue to create content such as data multi factor authentication custom survey and e book and a SAML single sign on e book, both released in Q2. We continue to optimize the ROI of our marketing efforts. We define quarterly goals and analysis. These efforts keep us focused on driving new business, customer retention and brand awareness. Our cyber focused public relations partner, Matic Communications, We continue to help build our brand recognition and credibility in the market by securing coverage in several publications during the Q2. Through these initiatives, we believe we are making solid progress in positioning BIO key for further growth and success. At this time, I will hand off the call to Cece Welch for a review of BIO key's financial performance. Thank you, Kim. Q2 'twenty one revenue increased The increase is primarily attributable to the $633,000 increase in license fee revenue, which revenue from the Pistol Star Portal Guard acquisition that closed on June 30, 2020, and therefore did not impact The prior year period was also somewhat negatively impacted by COVID-nineteen disruptions at the beginning of the pandemic. For the 1st 6 months of 2021, revenue increased 2 47 percent to $2,900,000 from 830 in the 1st 6 months of 2020. Q222 gross profit increased to 753,000 from 159,000 in Q2 'twenty, principally reflecting an increase in higher margin License revenues as well as an improved gross margin. Gross margin increased to 76 percent in Q2 'twenty one as compared to 52% in Q2 'twenty 20 as license fees comprised of much larger proportion of revenue in the current year period. For the 1st 6 months of 2021, gross profit grew 2 37 percent to $1,900,000 from $557,000 primarily due to revenue growth. Operating expenses increased 22 percent to $1,900,000 in Q2 'twenty one from $1,500,000 in Q2 2020, which was significantly lower than the growth in revenue. This increased expenses is attributable to higher product development and engineering costs as well as higher SG and A costs reflecting Continued investments in sales and marketing and customer service, along with the inclusion of the Portal Guard operations in BIO Key's results. BIO key reported a reduced net loss available to common stockholders of $1,200,000 or $0.15 per share in Q2 'twenty one compared to a net loss of $1,600,000 or $0.60 per share in Q2 'twenty. In the 1st 6 months of 2021, BIO key's net loss to stockholders improved 60% to 2,000,000 from 5,100,000 during the 1st 6 months of 2021. Weighted average basic shares outstanding were approximately 7,800,000 for Q2 2021 and the 1st 6 months of 2021, which compares to $2,600,000 $2,300,000 for Q2 2020 and the 1st 6 months of 2020, respectively, with the increase primarily reflecting the shares issued in the company's successful fundraising in July 2020. We ended 2021 with current assets of 17 point $3,000,000 including $11,500,000 of cash and cash equivalents and no debt outstanding. This compares to current assets of 2 point $3,000,000 $2,700,000 of notes payable outstanding at the end of Q2 2020, again reflecting the July 2020 Recapitalization. We've also invested about $3,800,000 in networking capital through the 1st 6 months of 2021, primarily in inventory and prepaid inventory as we prepare for the increased business volumes and manage through potential supply chain issues. With that, we can now turn the call back to the operator for investor questions. Thank you. We will now begin the question and answer session. And the first question will come from Jack Vander Aarde with Maxim Group. Please go ahead. Great. Good morning, guys. Appreciate the quarterly update. Just a couple of questions from me. I'll start with a question from Michael On the Africa contracts and some of your comments that you mentioned in your prepared remarks. First, can you provide, Juan, can you revisit what you said, restate what you said and then provide some additional color regarding your comments In terms of the change of how you are now being paid, it sounds like payments are more of a guarantee now with the World Bank and Just what has changed with that relationship exactly? I didn't quite catch that. And then what does that mean Going forward, if we assume we move beyond COVID? Yes. Good morning, Jack, and thank you. I can Ed, perhaps a little more color around that. Fundamentally, what I said was that the One of the reasons, right? Obviously, there's been COVID related issues and that kind of thing that have plagued literally every country around the globe. But One of the other challenges is and has been that getting the money from The central repository down to the vendors at the street level that are actually doing the work, meaning That are enrolling and creating the verification ecosystem has been slow. In fact, so slow that the World Bank has stepped in and has put in place a Systems such that the local or national banks in Nigeria can now do equipment and service financing directly to the vendors so that they can get the process moving, because only 16,000,000 Of the entire population has been enrolled to date. And there was a plan that originally said by the end of 2021, 80 plus percent of the population would be enrolled in the system, which is a couple of 100,000,000 people. So in order to remedy that and really start to get Now there is a process in place that will guarantee, For example, BIO key is a vendor and there are other vendors, but guaranteed BIO key payment for the products and the services that we provide Directly from the bank. So vendors like BIO Key will get more aggressive in Ensuring we have, for example, the inventory or we have the resources on the ground to be able to support these programs. Got you. And then just a follow-up to that. Does this mean the dynamic you're kind of This chicken or the egg kind of scenario you had before in terms of like you don't want to ship hardware without being paid, does this now But Dite, does that did you just remove that friction altogether? And now the only bottleneck to your hardware shipments are just the fact that the country is kind of Re closing down a bit or being more strict because of this Delta variant? Absolutely. It absolutely means that. And Compounding the financial scenario that I just described was of course the chip shortage. So getting product Has been challenging across the globe in virtually every industry and every sector within technology. But this absolutely alleviates that scenario because we'll now be more comfortable. And as you can See, when you look at our financials, we do have a reasonable or I'll call it sizable inventory of product Ready to turn into shipment, into revenue and obviously into cash in the coming months. So we're in a really good position in that regard. And having the capital to be able to do that, especially at this time was really critical for us. And I think it's going to serve us well going forward. Great. I appreciate the color there. And then maybe just one more on the Africa contracts. In the Q1, just looking through the 10 Qs, the Q1, you had hardware sales Over $600,000 almost $685,000 Looking at the Q2 here, while you didn't have hardware shipments to Africa, You did generate, it looks like license fees within Africa of almost $250,000 Is this related to is this not related to those 2 contracts? Or is this tied to that initial hardware you delivered there and this is the license revenue that's associated with That first quarter hardware deployment? I don't believe that license revenue was associated with Africa. Cece, maybe you can Fine, but I believe that was license revenue associated with our PortalGuard business. And perhaps our biometric business as well, Our International Biometric Business. So the Africa, for example, we have a large customer In South Africa, Capitec Bank that has purchased well over 7,000,000 or 9,000,000 User licenses from us for a bank verification, identification and verification project. So the revenue associated with that perhaps Might have been through the South African opportunity, but not the Nigerian or the Nigerian contracts that we have. Yes, that's exactly right. And then just Maybe a question for Fred on the channel lines program. Can you just remind me again of what you mentioned the revenue contribution I think it was small, but just so I have as a baseline. And then if we assume you reach your target number of channel lines partners, How much revenue would you expect to generate on an annual basis? I know it's just the near term target as well. But just, so what was the revenue in the quarter from the channel lines? And then what's your target if you had all your targets? Yes. As we said, I think it was less than 100,000. So it was close to the less than $100,000 last quarter. And we will see a growing percentage of our revenue And that will go on a ramp over the course of the remainder of the year and into next year. And as we highlighted in the statements, We recently signed on with a new distributor and are on boarding and training right now and you'll see some Information about that shortly, but that will dramatically increase the number of partners. So I don't have a total handle on that Yes, but that will be a dramatic increase in the number of partners. So probably more information to come on that as that progresses. Okay, great. I appreciate the color there. And then just one more question for anyone, maybe Michael. In terms of the guidance, you maintained your guidance of $8,000,000 to $12,000,000 for the year for revenue. Just wondering, is there any more color you can That's a wide range, but just can you remind us again what factors are embedded in that guidance And why you remain confident that you're going to hit that target? What needs to happen, business as usual? Or is there anything, Is there any aggressive targets baked into that? Thank you. Well, I think there are 3 things. Fred just described the CAP program and the partner Acceleration that we expect in the second half, it's always been planned for the second half. And so we're encouraged that that's going to help us and Contribute to significantly to our growth, that's number 1. Number 2, we discussed Africa. Obviously, with the Guarantees and the finance flowing makes us feel pretty comfortable that we're going to achieve our objectives there. And then just in general, the growth and the migration to the cloud Increases our ARR and increases our revenue for each installed base customer. So that's another factor that we expect So all around, blended, we feel really good about growth in the second half and expect To achieve our objectives and hey, whether we can overachieve our objectives, obviously, if things really fall into That may happen, but we're comfortable staying with the guidance we have right now. Okay, great. I appreciate the time guys. I'm going to hop back in the queue. Thanks. The next question will come from Richard Arnold, Investor. Please go ahead. This is Richard Arnold. I appreciate the opportunity to speak to you. I'm impressed by the domestic side. My concern is totally in Africa. And I have really a 3 part question. Has the 6 $180,000 that was billed in the 1st quarter been paid. Secondly, what part of the $8,000,000 to $12,000,000 projection, and I understand that $8,000,000 Was in the previous conference a breakeven point, what part of the $8,000,000 to $12,000,000 is dependent upon Africa? And then thirdly, the prepaid Expenses and investment went up by 3,000,000 which would account for the decrease in cash. What part of that was sent to Africa as well? I am concerned about Africa that since that represents a big shot For the company to improve. Thank you. Great. So, let me knock down the questions 1 by 1. The first was the payment from the 1st quarter shipments, that's in process right now. And again, with the change In the I'll call it process again with the change in the payment process where the banks are going to pay us directly, we expect to see that cash very shortly. So that's the first. The second is, you mentioned the inventory levels Or cash reduction, I. E. Turned into inventory levels. Obviously, a portion of that is Clearly related to our Africa contracts, but we're very careful not to get too far ahead of ourselves. But on the other hand, We had to take advantage of the opportunity to get equipment with the chip shortages and the difficulty in That most manufacturers are having right now, we wanted to be sure that we got ahead of the curve. The 3rd component or second component of that inventory position is our traditional products. We are working on some new and innovative Technology that we are going to introduce in the second half. And so there's some money associated with that development as well. So I think that addresses the inventory question. The other question you had was around our guidance And how much of that is related to Africa? Well, if you look at The last two quarters, for example, and look at our Portal Guard business just in general at a steady state, If we didn't grow the business at all, it would represent probably about 5 and our biometric business would probably represent about $5,000,000 to $6,000,000 independent of Africa. So as you can see in our guidance, we don't have a tremendous reliance On Africa, although clearly we do see significant, significant upside As the projects begin to roll out, because remember, there's tens of 1,000,000 of dollars in opportunity there, not just millions Our single digit millions. So, I hope that answers your question as well. It does. I don't think it answers the question. If you look at the stock this morning, At least the last I saw it, it doesn't represent confidence in what we're projecting. But I try to be confident and I'm proud to be positive and I hope you do well. Thank you for answering my questions. Thank you, Richard. Our next question will come from Dan Camus with Investor, please go ahead. Hey, guys. It sounded like from your initial comments that the bank Guarantees are not a done deal. Is that correct? Yes, they are. There is no other barriers you have to get over to actually get the guarantees? There is always barriers in Africa. So what does that mean that they're done, but there's still barriers? No, no. I'm being a little facetious there. I mean, Again, that process is in place. It's in place and ready to go. So that's the latest we have. We monitor this on a almost on a daily basis And that's the situation. But I'm facetious about, there's always something in Africa, as Richard mentioned, the confidence And being able to deploy such a significant program is challenging, but the funding is there, The requirement is there, especially again given that in order to really get the country, especially Nigeria, Out of the doldrums and to begin to build an ecosystem that can put people to work and can create an economy outside of the government, This is the only option. So it's a challenging business, but for those of us who I believe this, I very, very strongly believe this. For those of us So, you don't have invested and hang in here, there's going to be significant reward. Okay. Can you say how much of the I don't know if it's $45,000,000 or $75,000,000 in contracts will get guaranteed? I think it will be iterative. So as things get deployed, obviously, our goal was deploying all of the initial hardware, right, Get things moving and I think it will be iterative over time. We're not going to get as I mentioned to Richard, we're not going to get too far ahead of ourselves. We know we have to have inventory in order to be able to immediately ship it. On the other hand, we don't want to be committing to huge amounts of product, If in fact the payment is going to be there. So it's a balancing act. But the contracts are still of the magnitude that we Clearly, if they get fully deployed, it could represent near $100,000,000 in business. You will also see some as I mentioned before, you'll see some additional products that we're going to be introducing in the second half That will also have a significant impact on the revenue opportunity in Africa going forward. Okay. Last question on this. So will you at least for 2021 or the next 12 months or something get guarantees for the $4,000,000 in inventory you've accumulated? We believe so. On the continuous biometric user authentication patent, A few years ago, there seemed to be a lot of buzz about in screen fingerprint sensors. But to my knowledge, they haven't come to fruition. I don't think are there issues with the technology? And are you going to be able to monetize that patent Going forward, to any degree? Well, 2 things. In screen fingerprint sensors, you're right. There was a very aggressive move at one point to get them embedded in particular in mobile devices and we haven't seen much Innovation around that area recently. But the continuous biometric patent is not just associated with fingerprint scanners. So keep in mind that continuous authentication across perhaps Facial biometric read or a behavioral biometric read can also apply to that patent. So It has a broader use and a broader perspective beyond just fingerprint scanners. I got a question on the National Identity Management Commission. They've been putting out releases touting their increases of 10,000,000 users in the last 4 months and Increase of enrollment centers to 3,800 and whatnot. And they have some they count this much awaited Android Enrollment system is now ready for deployment. Does that have anything to do with your system or is that something else? That absolutely does. We're very focused. So they are counting again up to 60,000,000 enrollees with which is again only 20 25% of the total required enrollment over time. The centers that are set up are set up In the larger cities, our vendors, the partners we're working with are very, very focused on mobile enrollment. And if you look at our Pocket 10 fingerprint scanner, it's very, very small device that does 442 scanning. And it's a device that is low power, very, very portable. And in order to get the country truly enrolled, There has to be mobile centers set up and you have to actually go to the people to get them enrolled. And that's what we're very, very focused on. So the majority of the enrollments are going to take place in a mobile venue over time because it's going to be out in the remote areas That collecting that data and getting those people enrolled is going to be critical. And then the verification services that are going to be provided above and beyond the initial enrollment, create a whole new level of opportunity for us where, For example, we'll be creating that was the whole initiative around creating 1,000,000 new jobs within the Nigerian ecosystem for Payments, payment processing, financial services. So that's where all of this comes together. It is a huge, huge opportunity. And the end game also for us beyond providing the hardware is providing the identity management ecosystem, the software And the service, our IDaaS is perfect for remote authentication on these mobile devices. All of these mobile POS devices will have fingerprint capability, as well as cameras and Barcode capability, all of those things, they'll have printers. So that's where the real, I'll call it solid, High, high margin recurring revenue will come and that will follow the initial Equipment deployments, the enrollments and then ultimately the verification services. The thing I'm not sure about is they were touting that these 60,000,000 users each have about 3 to 4 SIM cards and that covers all the mobile devices in the country. So I thought they were well on their way. So I'm a little Is it SIM cards or is it the actual people that they're trying to get covered or both? I'm just a little confused No, don't be confused, it's individuals. It's individuals. So, it's citizens. That has nothing to do with SIM cards. It's individuals. It's people. The next question will come from Frank Silifo with Silifo Associates. Please go ahead. Good morning, Michael, and nice to chat with you, and thank you for the I don't know if you're aware, but I've been a so called gambler since 1961. You should note there is someone on the telephone call today who is trying to get the stock down to 0. You understand what I mean by that, right? I'm not so sure. But what I'm saying What you should do, Michael, if you want to This concludes our question and answer session. I would like to turn the conference back over to Mike DePasquale I just want to thank everyone for participating in today's call. We look forward to updating you on our Q3 call, which will likely be in November. As always, we'll continue to provide interim news and updates In the meantime, also we plan to present at the Lytham Partners Fall Investor Conference, a virtual event held the 1st week of October. We'll put those details out when we have them. Again, thank you all for your time today. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.