Earnings Call: Q4 2020

Mar 10, 2021

Hello, everyone. Thank you for standing by, and welcome to Neonode's 4th Quarter 2020 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session with the company's covering analysts. Simply press star then the number 1 on your telephone keypad. Thank you. At this time for opening remarks and introductions. I would like to turn the call over to David Brunton, Neonode's Head of Corporate Investor Relations. David, please go ahead and start the conference. Welcome, and thank you for joining us. Call. On today's call, we will review our Q4 year end 2020 financial results and provide a corporate update. Our update will include details of customer activities, technology developments and other items of interest. Call. On today's call is our CEO, Doctor. Irvin Poorsal CFO, Maria Ek and Vice President of our HMI Products Business Unit Johan Swartz and Vice President of our HMI Solutions Business Unit, Jonas Varn. Before turning the call over to Ervin, I would like to make the following remarks call. All statements in this conference call other than historical facts outlook. The words anticipate, believe, estimate, expect, tend, will, guides, confidence, targets, projects and other similar expressions, typically are used to identify forward looking statements. These forward looking statements do not guarantee the future performance that may involve or subject to risks, uncertainties and other factors that may affect Neonode's business, financial position and other operating results, which include, but are not as limited to, the risk factors and other qualifications contained in Neonode's Annual Report on 10 ks, quarterly reports on 10 Q and other reports filed by Neonode call with the SEC, which to which your attention is directed. Therefore, actual outcomes end results may differ materially from what is expected or implied by these forward looking statements. Neonode expressly disclaims any intent or obligation to update these forward looking statements. At this time, it is my pleasure to turn the call over to Urban. Urban, please go ahead. Thank you, David, and welcome, everyone, to our 4th Quarter Earnings Call. I would like to start this presentation short summary overview of our general strategies and business in the last year. Maria, can you go to the next slide, please? So it was a very interesting year, very interesting and busy year for me personally as well as for Neonode. Neonode, we decided on a new direction for the company and developed radically new strategies that we started executing on. Compared to Neonode's previous modus operandi, the new strategies include several changes. For instance, 100% focusing on B2B, organization of our business activities into 3 separate business areas and a more outspoken strategy to leverage existing technology and applying it to new application areas. To support and drive the changeover, we also recruited several new strong team members, both to our headquarters in Stockholm and internationally. And in parallel to all this change work, we, of course, continue to support existing customers and to innovate and improve on our different technology platforms, which also Then came the COVID-nineteen pandemic. And this has given us some definite headwinds that We had to navigate, but also open up new possibilities for us to use our existing technology and know how for very attractive, easy to use and value adding, complex touch solutions. So next, please. Coming into or coming out of 2020 and coming into 2021, we are We are well positioned to capitalize on current and future opportunities. We have a very good team in place. We have a strong technology and IP portfolio. We We have a well recognized brand. We have an extensive global ecosystem of partners, and we have an impressive and growing list of customers. And thus, now during 2021, we will continue to execute on our strategies, and we will continue to build on our business pipeline. And we are very much encouraged by the feedback we have from customers and partners in our ecosystem. And with this as a short opening statement, I would like to hand over to Johan Schwartz, who will give an update regarding our business in HMI Products. Johan, please. Thank you, Urban. My name is Johan Swartz and I head up 1 of Neonode's 3 business areas called HMI ProDise. So this business area is focused on sales of standardized sensor modules suitable for touch on display or any surface as well as in air, I. E, contactless touch and gesture sensing. Our sensor modules are easy to integrate and ideal for both new designs and retrofit solutions And being placed along only one side of the display or surface enables high level of design freedom and superior customer experience and are, of course, completely turn free. Production is located on the West Coast of Sweden with high volume capability. Although we in this business area have a legacy frontage in B2C and Medical Industrial segment in B2B, We have, on the back of the pandemic, decided to refocus on 2 selected main segments with a focus on contactless pads, I. E, the Elevator segment within the installed base of 70,000,000 units globally and an estimated CAGR of 4.5% until 20 sector 6. Secondly, interactive kiosks with an installed base of 39,000,000 units globally and an estimated CAGR of 9.1 percent until 2027. In order to efficiently address All segments on the market, ranging from the broad market at the bottom of the pyramid to the large OEMs at the top. Sales distribution and system integration is managed through a global network of distributors, value adding partners, sales representatives and to some extent direct sales. Now signing up new channel partner is not a guarantee for success, but it's certainly a prerequisite to scale fast. Therefore, we have in the past 6 to 7 months signed up 9 new demand creating value added resellers and distributors, Each one with an active sales funnel and sales force on their own, giving us an extremely strong platform for sales execution going into 2021. On average, each of those partners have 4 to 5 salespeople working on somewhere between 50 to 20 opportunities per partner, I. E. Somewhere between 150,200 Opportunities in Total. For example, FinTech, one of our partners in South Korea, Have been prototypes and is currently in final testing with several major elevator OEMs in the South Korean market with deployment expected to start during Q2 2021. Japan Aerospace, one of our partners in Japan, have completed several proofs of concepts associated both with self check-in, self baggage drug kiosks at airports as well as with self checkout kiosks in grocery and convenience stores. Also here, initial rollout is expected Q2 of 2021. So ePlacer is certainly spearheading the deployment of contactless hub solutions and devices, but Europe and North America are not far behind. For example, Juhoost, a UK based leading supplier components to the global elevator market has recently launched a compactless elevator control panel for existing and new elevator installations. Solution is marketed and sold at halo in Europe and beyond from the beginning of 2021. Furthermore, Marine Group, a manufacturer of kiosk solutions to Burger King and other quick service restaurants in France, Aspylos is a contactless self ordering system in Paris. It's an extremely adaptable solution ideal for retrofitting on existing kiosks. And this solution is marketed also as Airflick, also in Europe from the beginning of 2021. Finally, Nidec Sankyo, a world leader in card handling solutions, have announced a contactless self-service solution for unattended terminals record and NFC Research. This solution is smart than so under the brand name of team on air, initially targeting the U. S. Market. Okay. Thank you, Johan. Short, quick overview of the business area HMI products. I now want to introduce Jonas Baer, who will present an update regarding HMI solutions. Jonas? Thank you, Urban. Thank you. My name is Jonas Beran and I head up the business area called HMI Solutions. We work consultatively and strategically with our customers in delivering highly customized solutions. Let me repeat that. We work consultatively and strategically. We focus on owning the relationship with the customers and almost always work directly together with them. Within Neonode and especially within HMI Solutions, We are actively moving to higher value markets for mission critical products and systems. The focus is on military and avionics and rugged industrial applications. We play where our quality and technology fit better with the changed market landscape. In short, we're engaging where we can delight our customer and bring added value to the marketplace. So why are we good? In short, high quality and rugged design. We see those as clear advantages when benchmarking and the customers are also very interested. We enjoy and constantly improve and sharpen the legacy of Neonode's 2 decades worth of innovation and technological trailblazing. Our and counting 120 patents ensure high quality and stable operation in very demanding environments. So again, we're sharpening the focus of our offer and making plays with our technology, quality and support offers the best return on investment for our demanding customers. We see these two segments here, military and avionics and Industrial at a good complement. Military and avionics at high end margin, exposed to political decisions surely, but also fairly long sales cycles. As you can see, they have attractive CABARs and attractive total available markets as call. They're both guaranteeing long revenue cycles of 5 to 10 plus years. So basically what you're looking at is our plan of attack and we were very happy in getting a solid confirmation from the market of this new strategy last fall only months ago when we signed a first deal with a major U. S. Defense contractor using Neonode's technology for glass cockpit displays in private jets. But also, They're large companies, and 80% of the market within military and avionics are in the U. S. And so we're very happy to welcome new Resources new colleagues for this business area based there as well as covering some of the big players in Europe to cover these largest military, avionic and industrial companies here. Lastly on this slide and make no mistake share. Neonode will always maintain room and interest to work opportunistically. We receive very interesting ideas from major and minor companies all over the world with diverse applications. We evaluate them using the tactic fail fast or scale fast, implementing better systems and market know how to more quickly see is this opportunity of interest, Not at all or simply not now. So how does the HMI solution cell work and how do we attack the market? As I mentioned earlier, large account management, relationships and work consulted is really key here. We target the top 20 companies to start with, get a foothold and then make sure we get to know the company as much as possible. These two main markets, again, military avionics and rugged industrial, they're different but also complementary. We're investing in knowledge, new technology and testing continually. To also show how we work, We are a cousin. We have complementary approaches, but also differently compared to HMI products. We want to maintain the direct relationship With our large customers and medium sized customers, we simply do not focus on smaller ones. We are maintaining a partner relationship and growing our ecosystems, introducing our C Force technology to the portfolio of customers and customer partners. Again, the key to success here is large account management, map the customer organization and build relationships on a truly global scale. Now I will turn the call back over to Urband and our 3rd business area, remote sensing solutions, sorry. Thank you, Jonas. I will round off this overview of our three areas by talking a little bit about remote sensing solutions. So please skip one forward. In remote sensing solutions, we are working on driver and in cabin monitoring for automotive, which is a rapidly growing area, attracting a lot of interest A lot of new players and well established companies also wanting to have a piece of this market. We are talking about here safety and also comfort features. So features or systems that increase safety, increase comfort for the driver and the passengers. And in this space, we have, for several years, been developing an AI based software platform that we call multi sensing that we currently are marketing towards automotive OEMs and Tier 1 system suppliers. With multi sensing, our customers can create very efficient and cost effective yet high performance driver and in cabin monitoring systems. Skip to the next. The main market drivers for these type of systems It's, of course, safety. And then it's about the 0 vision to avoid any kind of debts Our injuries in traffic. And the people have noticed that many drivers are distracted. They text On their phones, they look out to the side window or they're simply not paying attention. Some fall asleep. That would be a typical thing these type of systems can warn for. But also looking at autonomous driving, especially when you go beyond level 2, OEMs and legislators want to Know that the drivers are in charge and also in some modes that they keep their hands on the steering wheel. This is the other example of a safety feature where driver and in cabin monitoring can play an important role. But we also have advanced passive safety features like adaptive deployment of seat belt, pretensioners and airbags, given that you detect and you can accurately position Persons in the cabin. Then you can imagine that you can do so much more with your advanced seat belt and airbag systems as well. There's also legislative pressure here playing into our favor. In the EU, the so called general safety regulation, decided by the EU Commission November last year, makes DMS mandatory by 2024. Similar legislations or rules are being planned both in the U. S. And China and other markets. We also see a very, very strong interest from customers as we meet with currently about comfort and personalization features. And there, only your imagination can limit what you can do. So you can detect and monitor persons in the cabin. You can adjust the seats automatically, rearview mirrors, seatbelts, also climate control. You can have adaptive Hi Fi system features that control different radio channels to different persons in the cabin and so on and so forth. And we have also been involved in discussions with 2 companies working on augmented head up display systems that adjust the picture they present to the driver on the wind screen depending on where you're looking and also tying this into the new economy. So you can also be prepared to get a lot of advertisement on your win screen in the future. We go to the next. To understand how we contribute to this space and to driver an in cabin monitoring and that value chain, We can have a look briefly on this systematic picture here. To the left, you have cameras and other sensors. The signals or the images from the cameras are fed into our software package, which we call multi sensing. First initial step, preprocessing, then you extract features like head position, eye position, gaze direction and so on, and then you track those And based on these intermediate signals, you can then, for instance, Detect if a driver is drowsy or is it distracted or if you are looking for other things, you can have other applications Using that information on top. Typical output will be a warning signal or in some other cases like when we talk about an adaptive head up display unit. There will be like input signals to this other system that we will export from our software. So this is how we fit in, and we aim at establishing ourselves as a Tier 2 software supplier here, working both With the Tier 1 system suppliers, and there can also be Tier 2 hardware suppliers and camera suppliers as well as some OEM players that want to integrate and develop these features themselves. And it's very clear here in this business area that our main target is the automotive light vehicle market. Last year came in around 70,000,000 vehicle, expected to rebound this Following COVID, second quarter of last year was a disaster. But it has been on track to reach €100,000,000 So that's a very massive market. We work here with a push pull strategy where we approach both OEMs and Tier 1s in parallel. And of course, with OEMs, it's a double 8 edged sword, so that we want them also to request our solutions from different Tier 1 system suppliers that they are talking to. Our focus right now is in Europe and North America. We have signed up with a partner, a sales company from Germany, helping us to penetrate this market in a much quicker way. So that's quite Similar to what we are doing in HMI Products, where we have then external help and people well connected in the industry, helping us to scale up much quicker than we could do with our own resources. So that's working out in a very interesting way. And We go to the next. Yes. And we are looking forward I will hand over to Maria to give us a financial update for 2020. Maria, please. Thanks, Arvind. You can find our 2020 full year earnings release and 10 ks available to download from the Investors section of our website at neonode.com. So I would like to start out with a summary of our revenues. We had a strong Q4 2020 with $2,400,000 of total revenues compared to $1,500,000 in the previous quarter $1,600,000 in the Q4 2019. The increase from previous year is mainly driven by product sales Nonrecurring Engineering Services within military and avionics. We also see some of the expected rebound in license revenues in the Q4. Total revenues for 2020 were, however, down by 10%, earnings release from $6,600,000 in 2019 to $6,000,000 A growing part of our revenues is derived from product sales business area HMI Products. Our business area HMI Solutions generated revenues of $1,900,000 in Q4 of 2020 compared to $1,200,000 in the previous quarter NOK 1,400,000 in the 4th quarter 2019. The majority of our revenues within this business area is still and from our print and automotive customers. Our intense work with customers within military and avionics is also starting to give effect. Revenues for the full financial year 2020 within the Solutions business area decreased, however, by 17% from $6,000,000 2019 to $5,000,000 in 2020, much related to the COVID-nineteen pandemic and the economic slowdown related thereto. Our licensed customers shipped 1,100,000 devices during the Q4 2020 and $5,000,000 in total 2020. The gross margin for HMI Solutions was 87% for the Q4 2020 compared to 100% all other quarters 2019 2020. This was the result of a considerable nonrecurring engineering project delivered in December. Our business area HMI product generated revenues of $500,000 in the Q4 of 2020 compared to $300,000 in the previous quarter and $200,000 in the Q4 2019. A major part of the products Welcome to our distribution partners in the U. S. And China. Revenue for the full financial year 2020 within the product business area increase by 67 percent from $600,000 2019 to $1,000,000 2020, much driven by the demand for contactless touch solutions. We shipped approximately 28 1,000 Sensor Modules, Air Bars and Evolution Kits during 2020. During the year, we were selling off Q1. Our AirBar inventory and earnings reduced gross margin. And as a result, the overall gross margin for the HMI Products business was 18 10%. Gross margin for our sensor module sales, excluding airbags, was 30% to 35% in 2020. In 2019, the margin for the business area was negative due to increased validation reserves for slow moving and obsolete products Operating expenses for 2020 were $11,100,000 compared to $11,700,000 in 2019. This is a decrease by 5% compared to 2019 despite a one time cost in 2020. Without them, the decrease would have been 12%. Expenses 2020 were lower than 2019 due to general cost savings, less traveling and lower SURF expenses results derived from a Swedish governmental support program related to the COVID-nineteen pandemic as well as delayed backfill of vacant positions. Operating loss was $6,200,000 in 2020 compared to $5,700,000 in 2019. This is an increase of 8%, but would have been a decrease by 5% if it hadn't been for the onetime costs. The net loss for 2020 was $5,600,000 or $0.56 per share net loss of $5,300,000 or $0.60 per share in 2019. The loss would have decreased by 8% 2020 was an ordinary year an unordinary year first half year made us take actions like reduce working hours for our Swedish employees. On the other hand, We have growing interest for our sensor modules and the contactless touch functionality they offer. Net cash used in operating activities during 2020 was $2,200,000 higher than during 2019, Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 So a strong position, enabling us to continue to execute on our business strategy. And now I would like to hand you back over to Erwin for some closing remarks. Thank you, Maria. To summarize and wrap up our presentation here today, I'd like to highlight the following. Our patented C Force Technology is an enabling technology, ideally positioned to solve for a lifestyle shift to contactless touch solutions brought on by COVID-nineteen. There is a high demand for these type of contactless tough solution. This is an enormous market opportunity to integrate Neonode technology into both new and retrofitted equipment, For instance, in interactive kiosk and elevators. We also see significant interest for our C Force and multi Sensiq Technologies from customers in military and VONEX and rugged industrial and automotive. And we feel that we are very well positioned to accelerate growth and capitalize on clients of future market opportunities. So we look forward to Giving you further updates in coming earnings calls later this spring, and stay with us. Thank you for joining today. And before closing, I would like to highlight a few other things. So first of all, already tomorrow, you can join us again for a U. S. Webinar. Please sign up on our homepage, neonode.com, and learn through this webinar through the steps towards complex touch interaction, where Neonode representatives as well as some of our We'll present what we do and how our technology works. Participation is free, but it's required that you sign up ahead of the webinar. Please do that. Also note that we are soon about to launch a new website. We will replace the current website at neonode.com with a completely new website end of this month or beginning April. Make sure you check-in regularly on neonode.com to see all the news coming there in a few weeks. And finally, I also want to underline that Neonode this year celebrates our 20 year anniversary. Make sure to follow us on social media and again to visit our website, neonode.com, for updates. And with these 3 bullets of more general nature, I turn the call over to you, Dave, for Q and A. Thanks, Irvin. We'll open the Q and A now from our analysts covering analysts. So if you guys have a question, please. Our first question comes from the line of Christian Schwab with Craig Hallum. Hi, guys. This is Tyler on behalf of Christian. Yes. Congrats on the strong end of the year and thanks for allowing us to ask a few questions here. So first, I was hoping any color on Q1 pretty well along here into the quarter. Directionally, is that shaping up to possibly be down sequentially after the strong Q4? Is it possible that Q1 could maintain these sort of flattish over $2,000,000 revenue levels? Any color on Q1 would be great. Yes, I'm going to pass that one over to Urban since he's much closer to it than I am. Urban, can you respond to that? We are seeing a little bit softer sales beginning, especially January, coming out of the holidays. The overall activity level is increasing. So I cannot give you any guidance right now for actually the actual numbers in the Q1, but the activity level is much, much higher than last year. So we are quite confident that sales will grow significantly this year compared to 2020. That's great. That leads into my next question a little bit too. Could you expand on that maybe as we think about the full year and how we frame it? You just said you expect 2021 revenue to be up significantly. So 2021 isn't We're looking for future growth. We would expect the material inflection of growth this year. You have to realize actually back up 2 years to 2019 and you check Neonode's product sales compared to 20 20. It was already up a lot. And for this year, we put the aim much, much higher. On the other hand, Like we've been communicating in the earnings calls during last year and also today is that we have been building our business pipeline. We have been strengthening our ecosystem. And several of these value added partners and demand creation distributors that we're working with are very active with significant sales forces, and they are each Managing Impressive Number of Opportunities in Thailand. What has been going on For several months already, in many cases, it's different types of proof of concepts, pilot studies, But also Pure Development and Testing validation. We have some very, very interesting projects growing in Japan and Korea, for instance. And those of you that know international business and you know the culture in these countries and in these companies. They are meticulous. They want to investigate and test and validate everything. So we have successfully passed several of these. We expect that this will then materialize as business later this spring and this year that they will gradually ramp up. We see Similar developments with companies in Europe and North America as well. Johan highlighted a few that we are working with, Nerim in France, for instance, Newhurst in U. K. There's other elevator companies in North America and other kiosk companies in North America. Some of these are already engaged with, again, pilot studies. So We are confident that we will see like 2021 as a breakout year Because some of these processes, even though we have the products, we are ready to sell. There are new kiosks and elevator solutions that have to be developed, tested and actually launched in the market. So There's a slight delay, and I think it's natural, and that's what we've been trying to say. This is not going to be a quick fix As we launched this product in like April, May last year, and then everything is fine 2 months later. Very good progress. We think we have a good pace, we have good traction. We have a good team on board. We have a good ecosystem. So I think we are well set. Great. That's very helpful. And then last one for me, changing a little bit here. I don't think I heard any updates. So just wondering if you could give any update on your work with your partner to monetize couple of your patent families with old smartphone technology understand it's litigation according to you. So to the extent you can provide any commentary there on an update or time line would be great. Yes. And the short answer is no. The background is the following that it's no secret that we have filed this with the SEC. We have entered an agreement with Equitas LLC, where we transferred the rights to some of our old patent family to them, and they I had the option to try to monetize those patents. And if they were successful, we will get our share of the returns. So we are not part of any litigation or any process. This is run 100% by Equitas. We cannot comment on But you, Tyler and Christian, and otherwise listening in, if you're interested, I advise you to contact Equitas Technologies LLC for an update, and they may share it. And there is some information public. So this is what we can say. So I'm sorry we cannot be of much help, but this is a very, very sensitive issue, and we are not part of the litigation. So we should not cannot interfere in any way. That's perfect. Completely understand. Thanks for all the thanks for the cover. That's all for us. Thanks. Thanks. Our next question comes from the line of Victor Westman of Redeye. Hello, Victor. Thank you so much. I have a question for Johan about the purchasing behavior in HMI products. How much of it is centralized and how much is decentralized in these different retails and airports restaurant, etcetera. Right. Okay. Well, it depends. I think it varies a lot between each of those segments you indicated. So for example, if you take And even in that, just take, for example, the QSR market, quick service restaurant market. Even within this market, they're actually drastically different purchasing behavior from a whether you are decentralized or centralized. So some of them are strictly centralized, Meaning that a global head office will take a decision what type of kiosks and what technology to roll out on every transfer Other are much, much more fragmented. So it's kind of really difficult to answer that question specifically since it varies so much. And also if you go, for example, to airports, that was the case that we mentioned there. It also depends a little bit if it's actually the airline or if it's the airport that purchase the kiosk Because some of the in some cases, the kiosk are owned by airlines, and in some cases, the kiosk are owned by airports. And in other cases, they're even owned by other independent third party organizations such as Sita or Alik. So it's really very it's very difficult to give one straight answer to that question. Yes. Okay. Thank you anyway. Good caller nevertheless. And my question also for Jonas. If you can say something about your military customer, the potential to leverage into other adjacent applications with this customer. What kind of potential are we talking about here? Is that other kind of displays? Or can you give some examples here? Yes, sure. This is an initial prototype project. The idea has always been to deliver excellence there and then from that take it into a few major projects. And without divulging anything and going specifically For any project like this, we want to make sure we make plays not only in the military segment, but maybe 1st and foremost as COVID-nineteen hopefully is going to close within a year or year and a half, the commercial avionics space as well So back to my initial comment, it's really about large account management. It won't be hundreds of customers for us. It will be a handful to start with, but we'll make sure to map them out and make the most. Then going into it could be ground, meaning army, It could be maritime, both for civilian use and military use. So they're all springboards into higher volume markets. Does that answer your question? Yes, very good. Great. Just the last quick question, a general question also for Urban With all these many potential areas and all these opportunities coming in, how do you prioritize the leads? Yes. And that's a background of the idea to organize our business into 3 business areas, where Johan and his team are working in a very, very structured and focused way regionally or country by country with our area sales directors So they work in a very systematic We have, as mentioned, a lot of help from several value added resellers. There are 2 Chinese tech companies that Actually, they've promoted several of our products. These partners typically also operate regionally. So it has become very much Like a regional game or country by country game, and it's extremely structured. If we move over to HMI Solutions, As Jonas explained, it's large account management. We are working mainly with direct sales, and We have Jonas and his core sales team, where we have end of last year added 2 very, very strong persons, 1 in Europe and 1 in North America. They are addressing these customers together with our engineering team. This is a solution sales, and then engineers are instrumental to actually make the sale. That's actually quite different. And the 3rd area, remote sensing solutions, We are doing some of the marketing and sales directly from the head office, myself included. But the bulk of the work is being done by our partner Z80, Z80 Automobile, Tysnik, based in Anzei Stuttgart, Germany. And they have some 40 to 50 salespeople meeting with customers every day. So we have found a good structure that ensures that everyone knows what they're doing, But we stay focused. And for each business area, we also are very, very clear both strategies and execution plans. And For me, driving sales is not magic. It's a lot of hard work and good strategy and other planning work before we set off. And this is what we have been doing During my tenure at Neonode, and we will continue to do. So we are constantly reviewing this if we are making progress, if everything is going in the right direction, And we are making corrections. And that's the only way, forward and upwards. Great. And keep up the hard work, guys. Thank you. Thank you. Thank you. And that's it for the Q and A for today and the presentation. So we want to thank you all for joining us on our call. And as Irvin said, we have a big conference coming up tomorrow in the U. S. Register and join in on that and check out our new website when it's released. So thank you so much for joining us today. Thank you, ladies and gentlemen. This does conclude today's conference call. You may now disconnect.