Earnings Call: Q4 2020

Mar 8, 2021

Welcome to the Andis Holdings Incorporated Full Year 2020 Earnings Conference Call. All participants will be in listen only mode. Before we begin, the company would like to remind you that this call may contain forward looking statements. While these forward looking statements reflect Andas' Best current judgment, they are subject to risks and uncertainties that could cause actual results to differ materially from those implied by these forward looking statements. These risk factors are discussed in Andus' periodic SEC filings and in the earnings press release issued today, which are both available on the company's website. Hondas undertakes no obligation to revise or update any forward looking statements to reflect future events or circumstances except as required by law. Please note this event is being recorded. Would now like to turn the conference over to Eric Brock, Chairman and CEO. Please go ahead. Thank you, operator. I want to start by wishing everyone a very good Monday morning and also to thank you for joining us on today's call and for your interest in Andas. I'm joined today by Stuart Cantor, a Founder of our company and the President and CFO of Andas Holdings. At the beginning of the call here, I'm going to provide an overview of Andas' business strategy and market opportunity, while also highlighting the significant progress we made in 2020, particularly with respect to product and commercial development in the rail and drone markets. Stuart will then review our financial results and outlook before I return to provide more details on the momentum behind our key strategic initiatives and partnerships and outline how our business development efforts will Let me step back for a moment and this is especially for the benefit of those new to the Andas story. I want to remind us all of the enormous market opportunity Andas is attacking. The industrial economy, which largely relies on private, wide area and narrowband networks, I've been starved in innovation in next generation communication networks for far too long. This lack of bandwidth and data capacity has delayed the adoption of high value mission critical IoT applications such as high value mission critical IoT applications such as the digital railroad, the electric smart grid and the intelligent oilfield. This has limited the ability of our critical infrastructure customers to drive intelligence into their field area operations. Of course, this is the problem that Andas is solving. We are bringing bandwidth to huge bandwidth served markets so that critical infrastructure Like rail, government, utilities and oil and gas can run their businesses better, enabling them to operate more efficiently and profitably and of course, more safely and sustainably. It's equally exciting that to see these emerging digital technologies, which of course include edge computing, wide area IoT sensor networks In unmanned aerial systems, also known as UAS or drones, are creating greenfield opportunities in demand for industrial wireless broadband networks. Andas' proprietary Foamax software defined radio platform is the first and only broadband solution Architected specifically to enable MC IoT in edge oriented industrial applications in these large and established critical infrastructure markets where wide area coverage is required. Over the past several years, Andas has been focused on driving adoption of our disruptive technology in the North American Rail and UAS sectors with the goal of scaling Andas' near and medium term revenue and free cash flow, while at the same time accelerating our long term ability to penetrate additional verticals using the same go to market approach, which includes partnering with Tier 1 industrial vendors and strategic ecosystem providers who are strongly positioned in these markets. We launched our business expansion efforts in 2018. That's when I Officially joined Andas in the leadership role. At that time, we began to engage institutional investors to fund an aggressive growth plan. And now, 3 years into this effort, we have significantly advanced that plan and also strengthened our balance sheet. Of course, that's highlighted by the recent $34,500,000 public stock Our customer sales cycle is maturing with critical Tier 1 ecosystem partners like Siemens and Aura Network Systems and now others engaging and investing alongside us. With that strategic context in mind, let's move to discussing our 2020 performance and the updates I promised. We ended the year strongly and our business momentum has grown heading into 2021. It's fair to say that 2020 was an exciting and Formative year for Andas. Despite obvious challenges related to the COVID-nineteen pandemic, our employees worked incredibly hard and remain focused on the task at hand. We continue to develop our platform opportunity and create value for our critical infrastructure customers and partners. I can't thank the Andas team enough for their tireless commitment to these efforts. Andas has built significant momentum in these 2 high priority opportunities. Of course, firstly, through our partnership with Siemens Mobility, we're working to drive platform adoption with the Class 1 freight rail operators. And secondly, with Aura Network Systems, we're carving out a key strategic position in the emerging UAS sector. Of course, Aura is at the forefront of developing a critical FAA compliant nationwide UAS command and control Wireless navigation network, as I will discuss in a moment. As far as near term execution is concerned, I am pleased with where we ended last year From the standpoint of both customer and revenue opportunity, we expect commercial bookings and revenue to continue to ramp over the course of 2021, but I will stress We are far from satisfied. Our customers need our technology and at every turn, we will always want business to come So while pleased with our progress, again, we are not satisfied. We have a lot of hard work ahead. I am going to now ask Stuart to review our financial results and the Q1 outlook before I provide more details on the key projects that we and our investors are tracking closely. Stuart, please go ahead. Great. Thank you, Eric, and good morning, everyone. As Eric highlighted, we made substantial business development progress In 2020 and in early 2021, we continue to grow our customer pipeline and move platform adoption and commercial deployments closer and closer towards bookings and sales. Revenues for the year ended 2020 were $2,200,000 an increase of 5 75 percent or $1,800,000 more compared to 2019. Our revenue growth was driven primarily by purchase orders from our strategic partners, as Eric mentioned previously, Siemens Mobility and Ora Network Systems. Our financial results showed substantial improvement year over year, though of course our P and L still reflects business development efforts in preparation to the scaling of the company's business. Operating expenses were $12,500,000 for 2020, a decrease of approximately 3 point $2,000,000 over the prior year. This 20% year over year decline was driven by spending reductions in areas that included Payroll, travel and entertainment, as well as professional fees, all of which resulted in lower sales and marketing and administrative costs. Business disruptions, as Eric had mentioned, related to COVID-nineteen also reduced spending in some areas during the year. The combination of higher revenue and lower operating expenses led to a 30% reduction in our net loss, which improved by approximately $5,900,000 to $13,500,000 in 2020. Net loss per share basic and fully Diluted was $0.66 for the year compared with a net loss per share of $1.10 in 20.19. Importantly, ONDUS ended the year with a strong balance sheet and better positioned to fund and execute on our growth plans. Our cash position at the end of the year was $26,100,000 significantly improving year over year, largely as a result of our $34,500,000 public equity offering in December. Business activity in 2020 was characterized by specific Project related system sales and service revenues. We expect significant growth in bookings and revenues in 2021, driven primarily by purchasing activity from Siemens and AURA as well as the Class 1 rails, where we expect the commercial rollout in the greenfield 900 Megahertz network to begin in the second half of twenty twenty one. It's important to note that we expect revenue and measures of profitability such as gross margins and operating margins to fluctuate from quarter to quarter For Q1 2021, we expect bookings of at least $2,000,000 and revenues of between $1,000,000 $1,500,000 Cash operating expenses are expected to be between $2,500,000 and $3,000,000 in the Q1 and may trend up modestly over the course of the year. Cash operating expenses Exclude non cash expenses such as stock based compensation, we expect bookings and revenues to continue to grow on a quarterly basis throughout the year. Before I turn it back over to Eric, I also wanted to personally thank our team at Andus for their exceptional efforts on behalf of our customers and shareholders. We have a talented and dedicated team who are entirely committed to our mission to bring Audis' MCIoT platform to the critical infrastructure markets. The team rose to the challenges we presented in 2020, and we are entering 2021 in a very strong position to reap the benefits of our hard work. I'm now going to turn the call back over to Eric, who will provide details on where we stand with the customer activity and the outlook for growing our business as we progress through 2021. After that, we will open the call for your questions. Eric, back to you. Thank you, Stuart. Now I want to take some time to highlight the 3 key strategic areas we're focused on for 2021. First, I will discuss our deepening partnership with Siemens Mobility and the key developments with the Class 1 rails as we move towards commercial bookings on the large network opportunities we see in rail beginning of course with the 900 megahertz system. 2nd, I will outline our work within UAS with Aura and the roadmap ahead to help commercialize the Aura network platform and satisfy growing customer requirements, while addressing key regulatory standards. And thirdly, I will discuss our strategy to expand our efforts to encompass other large markets outside of rail and drones, starting with the government So let's start by reviewing our progress in the Class 1 freight rail market, which Andas and Siemens are working to drive Commercial adoption of our full mass platform. As a reminder, Siemens is one of the largest global vendors to the rail sector and specializes in providing mission critical rail automation systems. Siemens is working with Andas to integrate our Foamax Software based wireless technology into these critical rail systems on behalf of the rail customers. From the customer's perspective, Andas' MC IoT products are marketed by Siemens under their Airlink brand name. We announced our first joint development project with Siemens in May of 2020. That project integrated our software based wireless platform with their advanced train control system or ATCS. The new ATCS system is backwards compatible with the legacy system by also providing all the MC IoT functionality and benefits of Foamax to the new rail network. Siemens has already place an order for these systems for both their labs in early customer field testing. We expect commercial orders in 2021 from Siemens for customer deployments. We're also excited to announce on today's call that Siemens and Andas are now collaborating on a new product for the rail market. Siemens will have worldwide sales and marketing rights for this product for which We've already started development and that development is expected to be completed in this calendar year. We expect to be able to provide more details on this agreement soon. Further, we expect additional product development agreements with Siemens as our relationship continues to grow. There's a lot more to do here. Now let's dig into the progress we as Siemens are making on the 900 Megahertz network with the Class 1 rails, who as we remind you, were awarded Greenfield Spectrum by the SEC in August of last year to deploy a new safety network. As you know, Andas has already completed extensive lab tests with multiple Class 1 rails in the new 900 Megahertz band. We have also undertaken extensive and ongoing field work with industry giants BNSF and CSX We have assumed leadership position in the 900 Megahertz network. These field efforts have been designed to test our system and gain experience with the new full mass architecture and the greatly enhanced performance and flexibility our platform offers the railroad industry. The rails need bandwidth as they look to drive more intelligence into their vast field operations and train management systems And Adas' software based Foamax network is uniquely positioned to provide that network capacity and performance It's important to note here that we've been working to establish a dedicated central MC IoT rail lab at our headquarters in Sunnyvale, California to help facilitate the work to determine the optimal configuration of the new 900 Megahertz network. The design of the MCIoT T Lab in Sunnyvale has been completed and we have built the initial phase. We are now waiting for the Class 1s to complete their internal work to engage in the lab, which is a key step along the path to Commercial adoption and rollout of that 900 Megahertz network. As we've mentioned before, the flexibility offered by our Foamax platform gives the rails a unique opportunity to share a broadband network. This is as opposed to carving up scarce spectrum resources into separate narrowband systems managed independently by each railroad as they currently do with the legacy network. As a shared network will require new operating procedures, We're seeing the rails work internally determine how to best move ahead collectively. Groups within the Class 1 rails, including the AAR or American Association of Railroads are important participants in this planning process. To wrap up the rail update, I want to remind you briefly that we're pursuing other rail networks, which we expect to have activity in during 2021. In addition to the 900 megahertz network, we believe the Class 1s Are exploring an upgrade of their legacy Critical Voice or that push to talk land mobile radio network, which operates in the 160 megahertz license frequency band. We will be sure to keep you posted on our progress here. Let's now turn our attention to Fast growing burn market where we are working with Aura to build their nationwide UAS navigation platform and managed services offering. We're very excited about this significant customer relationship. OAR is run by an experienced leadership team with extensive communications and aviation expertise. Aura is solving a critical problem for the U. S. Industry and is, as far as we know, the only solutions provider that's positioned to address The FAA requirement for robust dedicated drone navigation network. A key differentiator for Aura is their acquisition of an exclusive Nationwide license frequency band, which allows for high altitude air to ground communications operators of large, Fast moving and high flying drones, including those used for inspection and security applications as well as those used for Urban Air Mobility, also known as flying cars, in transportation markets will need to have a drone command and control network like that envisioned by Aura. This so called C2 network will be designed to meet FAA requirements in order to fly long distances beyond visual line of sight. As regards to our Specific opportunity in this market, Andas is providing the robust and critical data communications link as Aura designs and plans their commercial network and operations. In addition to Andas, Aura has engaged other key ecosystem players, including well known and resource aerospace companies to help commercialize the platform. Our work with Aura began in 2020 with Aura completing the initial nationwide network build out in their license band utilizing our Mars base station. This build out satisfied an existing SEC license requirement and in January of this year with overwhelming support by the UAS industry or received a waiver from the SEC to allow for drone communications at high altitudes. This SEC waiver is a catalyst for advancing the required Technical and market development in which Andex will play a key role. With these important steps complete, we are pleased to announce on today's call That Aura has now placed next purchase order for their Phase 1 commercialization effort. This Phase 1 project calls for Andas to support enhancements in testing of our current Flowmax platform in order for Aura to provide demonstration networks and testing equipment to their UAS customers. Our work on this Phase 1 project, which has included in flight testing in recent months, is already at an advanced stage. In connection with this Phase 1 project, Andas and Aura have also agreed to explore deeper partnership opportunities as we jointly develop the critical UAS network In addition to funding development, Aura intends to purchase pilot equipment this year on behalf of their customers, the UAS operators, so those customers can begin to adopt Aura's groundbreaking command and control network and manage services offering for drone navigation. We are also working with Aura in parallel to finalize system requirements and scope of technical enhancements needed to fully modify our standards based to conform with the expected FAA navigation network requirements that I noted earlier. This will be Phase 2 of the commercialization efforts, and we expect additional revenue opportunities related to the Phase 2 program in the coming months. Time lines are still being considered, But Andas and Aura are committed to expeditiously delivering this system to the market. We will be sure to keep our investors informed as the commercialization efforts progress. Let me wrap up my orange drone related comments by highlighting There are many technologies needed to be integrated into a UAS safety network. Onus believes that our wireless technology is a critical component. This puts our company in a critical place within the UAS ecosystem that has historically been dominated by large aerospace companies. We believe our wireless connectivity platform in the commercial, industrial and industrial drone sector will position Andas for business expansion opportunities And we encourage our investors to learn more about the broad set of opportunity available to Andas in these UAS markets. There is significant market potential here and we believe that commercial UAS technology and regulatory development It's further along than most realize. Now that we've updated you on our drone and rail opportunities, let's Transition now to briefly discuss other opportunities for Andas to further expand our active customer pipeline into new markets. Our improved balance sheet and traction in executing and delivering on the critical rail and drone networks enables Andaz to broaden our total addressable market. In the coming quarters, we expect to launch additional initiatives to take our MCIoT connectivity and ecosystem partnering strategy into other critical infrastructure markets and in bigger ways. By way of example, I will point to the announcement a couple of weeks ago of our new partnership with Rogue Industries to target sales in government and DoD markets. Rogue is an agile focused marketing organization with significant expertise in bringing new technologies to these critical markets. The folks at Roe are veterans, veterans in every sense of the word, given their long service in the Air Force and their experience as both internal and external procurement specialists in the government and defense markets. Rogue has credentials, which allow for rapid procurement from existing already budgeted government spending programs. This expertise would otherwise require significant Expense in time for Andas to develop ourselves. Our agreement with Rogue is another example of Andas leveraging the ecosystem flywheel with our Capital Life business model. We believe that our wireless MC IoT systems offer significant value for these markets. Government and military operations clearly Andes has experience with border and perimeter We have previously fielded interest in our MCIoT wireless platform from the U. S. Government, agencies within the government as well as from Avianis vendors. So we're excited to begin exploring these markets with the assistance of Rogue and we do plan to work towards establishing additional ecosystem partnerships and new market Expansion opportunities beyond this rogue agreement. To wrap up our review and update, Onus' business development efforts for the rails are progressing nicely And we have the right roadmap to secure and deploy the new 900 Megahertz network. The Siemens relationship continues to evolve and grow as today's announcement of a second Product under development makes clear and the commercialization effort for Aura's groundbreaking UAS network is underway, and this will accelerate through 2021. We are providing critical solutions to enable new valuable technology adoption within these markets. Our total addressable market by moving ahead with Rogue to target government and military, and we expect more ecosystem partnerships to emerge over the year. Lastly, we see significant opportunities to expand the scope of the business within other verticals and markets and are particularly excited about the high growth opportunities in UAS markets. As we conclude our prepared remarks, we want to ensure that our shareholders understand we have huge ambitions and we are demonstrating The leadership and progress required to disrupt the markets we're targeting. As we've seen over the course of time, bandwidth and networks are Critical Enabling Technologies. Andes' software based Foamax platform is solving the bandwidth shortage in MCIoT And this is an enormous opportunity, which we intend to seize for the benefit of our customers and of course, for our investors as well. Operator, I think we should take questions now. Can you please open the call for Q and A? Yes. We will now begin the question and answer session. Our first question is from Tim Horan from Oppenheimer. Please go ahead. Thanks guys. I wanted to focus on the rails, if that's okay. And could you be more specific on exactly what progress was made in the quarter on the rails building out the 900 megahertz Specifically, and I guess are all the major rails conducting trials at this point? And have they where are they in agreement to build out a common network? And just a few follow ups on the rails. Thanks. Sure. So I'll say to answer the first question, in the field work we've done, it's really been focused with BNSF and CSX. This is very common, Tim. You'll see when they're adopting new technologies rather than having 7 different systems kind of moving forward at the same time, There's a rail or 2 that takes the leadership to work with the customers I'm sorry, to the vendor and that's what we see here with BNSF and CSX. Our work with the Class 1s continues to be very good and collaborative. BNSF and CSX again are leadership in leadership positions, But they're part of a broader consortium of the Class 7 the 7 Class 1 rails, which all kind of operate together What they call the Wireless Comms Committee or WCC, which is kind of an organized effort within the American Association of Rail. So it continues to be with the rails, including the WCC, very good and collaborative. Of course, Siemens is arm to arm with us as we're bringing the rails up the curve How to best utilize, configure and implement our system. So that's what we're doing. In this MC IoT lab, which we're working with will be there'll be multiple rails involved, likely eventually all 7. And that's where we'll do the heavy lifting to actually design and configure the system to optimize the bandwidth utilization. As you remember, The rails have 4 different networks running multiple or many different applications. And given the flexibility and the bandwidth we're bringing, we give them the opportunity to mix and and match applications and move them across networks. So Stuart, would you add anything to that in terms of how the MC IoT lab is going to work and how it's helpful? Yes. Thanks, Tim. In terms of the lab setup, it's we've allocated equipment into sections for each of Great. So the specific progress made in the quarter has been just still more trials. Did the trials increase substantially from the prior quarter, or any change in the trials? I guess, what was the major difference in the trials occurring? So we're getting deeper into the trial, the field work with CSX and with BNSF. You saw, I think earlier in the quarter, we announced that DNSF had formally adopted the Mercury endpoint. So they've been broadening it into the Mercury Edge Remotes. And then again, we continue to work on this planning with the WCC led by BNSF and CSX. So it's an active conversation. We're at the point, Tim, where the work we're doing is actually broadening. So it's To adopt the system, it's really a convergence of IT and operational groups across the Class 1. So it's not we're getting beyond the telecom and networking arms. And of course Siemens is being very helpful in this respect because they touch many more points beyond the telecom groups where we first entered into this market. Those were our relationships were in the early work. And it's all it's going to require involvement of all levels and aspects So railfield operations, so signaling, crossings and folks like that. And it's especially requiring senior management decision makers who are going to be responsible Greenlighting the significant capital project in these new operating protocols. So that activity is broadening as you would expect and that does bode well for adoption. And so just to follow-up on that, when I mean time is kind of the essence here, right? We only have 2.5 years to get the network Up and running to vacate the spectrum. So where are they in agreeing to building out a common network? And where are the C level folks in their process Allocating the capital, just because time is of the essence? Yes. So that's this WCC group is now interfacing with the senior level We're waiting for that clarity. We can't give you the specific timeline for that as we sit. In terms of a specific date for the commercial PO, These rails, as you're well aware, they're very sophisticated and they rightly make us earn the business and we're doing that, but the purchase order will come when they're ready They're the customers. So we feel good with where we're at. We're interfacing. I think you'll see us make significant progress with this expanded group of folks we're We'll be dealing with in the coming months and we feel really good about where we're at with this network. And lastly, how is it going to be funded? Is it going to be do you think it ultimately will be one network and everyone just proportionally funds based on Percentage of rail that's covered or percentage of their business or do you think it will be 1 giant purchase order or is everyone going to do separate ones? We're not exactly sure how that how the purchase orders will come in the cadence. The ability to fund here is not an issue. The rails obviously have very strong balance sheets and strong cash flow positions in their capital intensive. So they have large capital spending budgets. How in sort of how they do this amongst themselves Remains to be seen. I think it's most likely that the purchase orders will come from the individual rails and they'll sort of Collectively decide kind of how the rollout goes across the various operators. Yes. Eric, if I could jump in real quickly. In terms of also, each one of the rails has, for example, in working with Siemens, has on master purchase agreements. And so our impression is that it will be from the individual rails. But as Eric said, this The decision making is at the senior level In terms of not a single purchase order, but how they all come together to make sure that the system is interoperable, right, because that's the key. If you have one rail Implementing this, the balance has to do it from a standpoint of coordinating the frequency and the applications as they Transition from one network to the next in terms of the rail network. So, I do believe that the way the agreements will come Individually from each rail under master purchase agreements. Got it. So just lastly, I guess what I'm trying to get at is how committed are they to this and Has that commitment changed 3, 6 months ago? Antares obviously now has plans and legal obligations to license out that spectrum. I guess, so in the last 3, 4 months, have the rails recognized that they have to get this thing about soon. Just any color on their commitment at this point? Yes. I think for sure the rail is Planning to build this network, they need to retire the legacy network firstly, and there's a timeline on that as you referenced. And we have been working diligently with them on this. They're putting a serious effort into it. So I'd say this is in terms of the process, It's moving along as we expected and the engagement is deepening and broadening. It's broadening within again, within the organization It's also broadening across the Class 1s, all 7 operators are kind of learning from the work from BNSF and CSX. Perfect. Very helpful. Thanks, guys. Good luck. Thank you. The next question is from Mike Latimore from Northland Capital Markets. Please go ahead. Great. Good morning, guys. So I guess I wanted to just be clear on an element of the guidance Did you say you expect revenue to grow sequentially every quarter that we said in the prepared remarks? Yes. Yes. Okay. Great. And then the way to think about the revenue sources for the year, is it fair Say first half is largely development fees, second half would be more of the remotes and base stations? Yes. Yes, that's as we're going through the year, we'll be still continuing on these development projects with Ora and Siemens. We will see the rails, buy more equipment to expand field tests. Obviously, we have the MCIoT lab That will be a source of revenue. But the big system sales ramp, that will happen in the second half. Got it. And then with regard to the lab, sorry. And then with regard to the lab, sorry. That Aura will be Aura is going to be purchasing equipment on behalf of their customers as well. Okay, got it. And then with regard to the lab, I guess, can you just provide a little more clarity on kind of what has to happen there For commercial orders to start in the second half of the year, like what are the key elements of what has to happen So is that activity at the lab before you get the commercial orders? Well, I'll let Stuart expand on this, but essentially the lab is really To determine configuration of the network, I mean, it goes down to it's incredibly detailed and technical, including packet sizes, how applications in certain data traffic gets prioritized. And we're also doing that in the shared environment where the sections of track, where the rails will be Sharing capacity, how that's going to work. So Stuart, would you expand on that? Yes, I think that's right. A lot of the Focuses on how capacity is handled as they hand off from one network to the next. And also, as Eric said, configurations, because our network technology enables multiple applications Versus single application network, they have different kinds of priorities for the data traffic even within the rails and among the rails. So this is the configuration test we're Doing for them, so they interoperate, but also can meet their own special needs within the rail on network. So it's both a collective application as they transition and then also within the rail they each have their own specific applications. So it allows them the flexibility to test both. Okay, got it. Great. And then, in terms of commercial orders, will they come So they're directly from the rail companies or would they come with the rails placed with Siemens and then Siemens kind of buys from you? How is that going to work, I guess? Stuart? Yes. They will be placing orders through Siemens and then Siemens will be So basically, the orders will go through some of this. Okay. Got it. And very last one, stock comp, what should we think about that being in the Q1 and then 2021? The Q1 is going to be about $1,200,000 and then it should be lower on a sequential basis throughout the year. All right, great. Thank you. Good luck. All right. Thanks, Mike. There are no more questions in the queue. This concludes our question and answer session. I would like to turn the conference back over to Eric Brock for any closing remarks. All right. Well, thank you, operator. I'd like to close by reminding our investors that Andas is bringing tremendous value to these critical industrial and government markets we're targeting. Bandwidth creates tangible ROI for the customers and for the partners. At the same time, these industrial markets have lagged with respect to IoT adoption, This is largely because the ecosystem tends to be conservative. They protect their legacy cash cow solutions and they're often driven by linear quarter to quarter thinking. We at Andas are creating and driving the necessary change and importantly the leadership in these markets and we're going to keep pushing and pushing on behalf of the customers. To the close, I want to thank you for joining the call. I also want to express gratitude on behalf of the entire team at Andot for your support. We're incredibly grateful and know that every day we have to continue to earn that support. We do that by delivering value to customers and partners and that's going to be the key for us to continue to create shareholder value. We begin the year with some terrific momentum and we look forward to sharing updates on our key initiatives over the course The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.