Earnings Call: Q2 2021

Aug 16, 2021

Welcome to the Ondus Holdings, Inc. 2nd Quarter 2021 Earnings Conference Call. All participants will be in listen only mode. After today's presentation, there will be an opportunity to ask questions. 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. Audis 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. I would now like to turn the conference over to Eric Brock, Chairman and CEO. Please go ahead. Good morning, and welcome to Andas' 2nd quarter investor call. I'm joined today by Stuart Cantor, our President and CFO And Rhys Moser, the CEO of our wholly owned subsidiary, American Robotics. For those of you who have been following the company, You are well aware that Andas had a very eventful second quarter. In May, we entered into a definitive agreement to acquire America Robotics, A leading developer of commercial drone systems and the 1st company approved by the FAA to operate its drones beyond visual line of sight without the presence of the human operator. The acquisition was completed on August 5, and we received overwhelming support from our shareholders With approximately 99.7 percent of the votes cast supporting the acquisition. Then in June, we completed a $51,500,000 public offering, The proceeds of which will allow the company to support the planned rapid growth for both Andas Networks and America Robotics, we also use the opportunity to retire almost all the company's debt leaving us with an extremely strong balance sheet. During the quarter, we advanced our plans toward driving full MAX network adoption with the Class 1 rails. We expanded our strategic partnership with Siemens and substantially completed our Phase 1 development work with Aura to support their nationwide command and control network Our agenda for the call today will include a financial update from our CFO, Stuart Cantor, covering the Q2 and first half of twenty twenty one. We will then provide an update on the OnDeck's network business before handing the call over to Reese for an update on American Robotics. I'll provide a summary outlook for the company at the end before turning the call over for Q and A. Stuart, I will now hand the call to you to provide more details on Q2 and the financial outlook. Thank you, Eric. As Eric mentioned, we did have an eventful quarter, which included making a $2,000,000 loan to American Robotics in April in advance of the announced agreement in May, executing on a 51,500,000 equity raise in early June and leading the effort to complete the acquisition, all while continuing to advance both the Onus Networks and American Robotics' businesses. As I shared our financial results for Q2 and the first half of the year, Please note that we have included financial statements in this morning's press release, and we'll be filing our 10 Q by the end of the day. The numbers we are reporting do not include financials for American Robotics for the quarter. We'll be publishing AR's 2nd quarter and pro form a financials in several weeks. I'd also like to mention that we don't intend to provide financial guidance given the maturity of the businesses and the recent acquisition of AR. We will continue to update our shareholders in real time as we achieve milestones. Moving to our results in the 2nd quarter. Revenues decreased by 25 percent to approximately $900,000 for the 3 months ended June 30, 2021, as compared to approximately $1,200,000 for the 3 months ended June 30, 2020. The decrease in revenue was primarily due to lower product sales, which were offset by an increase in development revenue in the 3 months ended June 30, 2021, as compared to the 3 months ended June 30, 2020, during which the company fulfilled a large network product order. Gross profit decreased by 50 percent to $300,000 for the 3 months ended June 30, 2021, as compared to $600,000 for the 3 months ended June 30, 2020. This was as a result of lower revenue and higher cost of goods related to development agreements. Gross profit on a percentage basis was approximately 35% for the 3 months ended June 30, 2021, compared to 53% for the 3 months ended June 30, 2020. The lower gross profit percentage was driven by the change in mix between development revenue at a lower margin than product revenues. Operating expenses were relatively flat at $3,400,000 for $800,000 in the 3 months ended June 30, 2021, which is offset by a total increase of approximately $800,000 for professional fees related The American Robotics acquisition and facilities related expenses for the 3 months ended June 30, 2021. The company realized an operating loss of approximately $3,100,000 for the 3 months ended June 30, 2021, as compared to $2,800,000 for the 3 months ended June 30, 2020. The difference was driven primarily by lower revenues And lower gross profit during the period. Net loss was approximately $2,800,000 for the 3 months ended June 30, 2021, as compared to a net loss of $3,200,000 in the 3 months ended June 30, 2020. The net loss was lower primarily due to loan forgiveness of approximately $700,000 and a decrease in interest expense of approximately $100,000 as compared to the 3 months ended June 30, 2020. Now transitioning to our first half numbers over the prior year. Revenues grew by 50% to approximately $2,100,000 for the 6 months ended June 30, 2021, as compared to approximately $1,400,000 for the 6 months ended June 30, 2020. Revenue growth was due primarily to larger development projects with Siemens and Aura during the first half of twenty twenty one. Gross profit increased by 45 percent to $900,000 as a result of higher revenue for the 6 months ended June 30, 2021, as compared to $600,000 for the 6 months ended June 30, 2020. Gross profit on a percentage basis was approximately the same at 45% for the 6 months ended June 30, 2021, as compared to 47% for the 6 months ended June 30, 2020. Operating expenses increased approximately 21 percent to $6,900,000 for the 6 months ended June 30, 2021, as compared to $5,700,000 for the 6 months ended June 30, 2020. This increase was driven primarily by professional fees associated with the acquisition The company realized an operating loss of approximately $6,000,000 for the 6 months ended June 30, 2021, as compared to a similar loss for the 6 months ended June 30, 2020. Increased operating expenses from the American Robotics The acquisition was the primary driver despite the growth in revenues and gross profits. Net loss was approximately $6,000,000 for the 6 months ended June 30, 2021, With a similar net loss for the 6 months ended June 30, 2020. And now turning to our balance sheet. The company held cash and cash equivalents Approximately $58,500,000 as of June 30, 2021, as compared to approximately $26,100,000 as of December 31, 2020. We'd like now to move to the milestones achieved for In our Q2 for Andas Networks, along with the network's outlook and then transition to the same for American Robotics. We continue to work closely with the Class 1 rails and our strategic rail partner Siemens to advance the adoption of Andas' full MAX platform in the 900 Megahertz network greenfield spectrum. Our multiple test networks with BNSF and CSX Continue to be exercised in the field and our real world learnings are paving the path for implementation. Also, the rail industry We will now begin the Q2 of 2019. We will now begin the Q3 of 2019. We will now begin the Q4 of 2019. We will now begin the Q4 of 2019. We'd like to remind you that the standard is based on our Foamax technology. The federated or shared network capability of our Foamax platform is an important feature of the 900 Megahertz network. The Rail Industry Leadership Committee notified us in June that the Rail Lab Was approved and that we can expect to receive the purchase order in the second half of twenty twenty one. We'll share that news as soon as we receive it. This order is more a validation of the opportunity we have in the rail markets. Also, as we move through the year, we'll look to share more information regarding the timing The 900 Megahertz network deployment. Our partnership with Siemens continues to deepen and widen With a major launch of our dual mode ATCS products this September. Siemens is putting their full marketing muscle behind these products, Which will continue to become more and more apparent in the near future. And the feedback from the rail customers as they understand the value and the capabilities of ATCS with full MAX inside. And remember, these products smooth the transition for the existing legacy ATC network to the new greenfield 900 megahertz spectrum. Continuing with Siemens, on our last earnings call, we made you aware of a new development program that was initiated in Q1. We received the initial purchase orders last quarter and that development project, which is our first onboard locomotive product, It's well underway with expected completion by the end of the year. Importantly, Siemens intends to market this product worldwide, not just in North America. We'll provide additional updates on this exciting new product in the near term. We also want to note that we expect to secure additional product integration agreements with Siemens in the second half of twenty twenty one. Also in June, both Aura American Robotics were invited to participate in the FAA's unmanned aircraft systems beyond visual line of sight aviation rulemaking committee. We want to tell you that we substantially completed that work in the Q2 with more than 80 hours of real world helicopter flight testing. The development work is now transitioning to a test and demonstration network for Aura's customers with additional demand for equipment. I'd also like to highlight that Aura has made some significant announcements recently. On July 28, they announced the closing $31,000,000 Series A financing. And this followed a previous announcement on July 12, in which NASA had selected Aura for their advanced air mobility campaign for integrating air taxis, cargo delivery aircraft and other new air vehicle concepts into National Airspace. Also, I'd like to highlight in June, both Aura and American Robotics were invited to participate in the FAA's Unmaired Aircraft Systems Beyond Visual Line of Sight Aviation Rulemaking Committee. To summarize, we believe the Networks business is on the cusp of a widespread adoption for several critical industries. Now I'd like to transition back to Eric to introduce American Robotics and Reis Moser. Eric? Thank you, Stuart. We continue to make substantial progress on the Onondis Networks front. Now let's turn to American Robotics. As you have heard, American Robotics is leading the charge in the commercial drone sector. They bring both a 1st in class and a best in class complete Drone in a box platform called the Scout system. In addition, AR has secured unique and critical regulatory approvals via the FAA that allow for widespread commercial deployment of Scout systems. The Scout is a type of solution that is coveted by our critical infrastructure customers And the addressable market for the Scout drone platform can be extended with the integration of Andas' mission critical Foamax wireless technology. Scout can benefit from Andas Networks' robust wireless connectivity and Andas Networks' customers can benefit from a new hugely valuable means of data collection. The AR acquisition was a bold move for Andas and the reception has been extremely positive, opening the eyes of our customers, Ecosystem partners and many industry participants are looking for complete end to end next generation data solutions. Reese, Vijay and the America Robotics team have already been hard at work scaling the AR business plan. I will now ask Reese to give an update on where we're at in ramping that growth plan. After Reese, I will wrap the call and turn to Q and A. Reese? Thank you, Eric. It's a pleasure to attend our 1st quarterly investor call officially under the Yandas umbrella. We've had quite a year since we announced our historic FAA approval, which culminated in emerging American Robotics and Onondas Holdings. I know I speak for our entire team that we are thrilled to be here and are ready to scale and deliver for both our customers and investors. We've already begun to put together the key building blocks for growth at American Robotics. As previously discussed, we launched our growth plan after receiving Initial funding from Mondas in April 2021 prior to reaching the definitive agreement in May. We started building inventory of Scout systems and have launched a hiring plan to put a world class team in place to support our rapid growth potential. Previously, we indicated plans to produce tens of units of Scout systems, and we have made our initial orders to do so. We've identified customers for initial installations as we move through Q3 and Q4 of this year. Our customer pipeline has historically been focused However, since receiving our critical FAA approvals and with the funding and acquisition by Andas, We have seen a significant demand ramp in high valued industrial markets such as oil and gas, mining and rail. The applicability for this technology is huge. And as the asset, we will concentrate our energies on the largest sophisticated customers We also plan to leverage OnDAS Network's customer base and worldwide distribution partners. This business plan calls for significant investment in people across all aspects of the organization. We are adding software, hardware, manufacturing and customer support engineers and will be continuously advancing our Scout platform and its capabilities. Importantly, we are now investing in and building out our field service operational capabilities as our customers are large, sophisticated and demand quality execution from their vendors. Combining that requirement with a significant market demand for our products, We're investing to ensure an industry leading experience from day 1. To that end, I want to highlight a few critical hires that relate to this plan. In May of this year, we hired Kevin Willis as American Robotics VP of Sales. Kevin has hit the ground running as he brings with him decades of experience, including serving as the Vice President of Sales for Kiva Systems, which was sold to Amazon and now operates as Amazon Robotics. Michael Gatewood has been hired as American Robotics Director of FlightOps. Mike will oversee, formalize and grow the company's flight operations program. Prior to American Robotics, Michael was Flight Operations Manager at AeroVironment And brings within 2 decades of engineering and aviation management experience. Additionally, last week, we announced the hiring of Michael Clatworthy as our VP of Operations. Michael is an exceptional hire that will help accelerate our corporate and customer costs. Prior to American Robotics, Michael was the Head of Operations for Avitas Systems, which is Baker Hughes' internal drone company. Michael helped found Avitas when he was part of GE and has grown their operations from concepts to 1500 customer sites per quarter. As mentioned, we see significant pent up customer demand and have received purchase orders post deal announcements. I would like to highlight 2. First, we announced a purchase order from Stockpile Reports in July. Stockpile provides best in class supply chain data solutions for bulk products that are mined and processed such as rock, gravel, cement and aggregates. This is a huge industry with more than 10,000 sand and gravel mines and more than 3,000 ready mix and asphalt plants in the U. S. Alone. And Stockpile has an impressive customer base of leading players serving over 300 companies in 48 countries. The data generated and analyzed by stockpile is used not just for inventory management, but also has tremendous value for supply chain optimization. When you can have near real time information on inventory levels, The opportunity to create a platform that impacts the bottom line profitability for StockCloud customers is massive. Again, there are thousands of these types of locations in the U. S. Alone. And just one of Stockpile's customers generates nearly $5,000,000,000 per year in revenue. The market is eager for better supply chain data and the Scout system is the best positioned technology to deliver. Similarly, we also announced in July a purchase order from a Fortune 100 oil and gas producer. The oil and gas industry represents a major new market American Robotics, with more than 90,000 oil and gas wells and over 500,000 miles of pipeline in the U. S, They require constant monitoring and inspection. This customer has a variety of use cases ranging from well pad inspection to demanding of remote facilities And emissions monitoring. This customer, like many industrials, has an active drone program that currently relies on pilots. The Scout system will take over many of these jobs, generate data more frequently, more reliably, and at a lower cost. Eric, I'll turn it back over to you now. Thank you, Reese. Quite clearly, we are full steam ahead at America Robotics. We got an early start in May on launching their plan, and we will accelerate customer activity as quickly and prudently as we can. Our goal is to position America Robotics to eventually deploy thousands of autonomous scout systems in the field. We intend to build a dominant commercial drone platform and are all in on doing so. We do want to carve out time to do a deeper dive with our investors on the American Robotics market opportunity, Growth strategy and many additional details around the AR business plan. To do this, we intend to schedule an AR focused business update targeted for September. We will be in touch with more details about that event soon. Let's wrap it up before we move to Q and A. Andas has made tremendous progress this year, positioning the company Huge growth in large open ended markets. Importantly, we are getting closer to turning the investments we have made into revenue. We announced and closed a transformative acquisition of American Robotics in just a few short months and then significantly strengthened our balance sheet by raising $51,500,000 in a public offering. The equity offering allowed us to eliminate virtually all our debt and secure growth capital to allow us to fully execute our plan. We have momentum. In addition to the huge opportunity with American Robotics, Andes is executing on our critical initiatives and driving platform adoption. Starting with the rails, Siemens and Aura, we are establishing our MC IoT platform as the default next generation wide area mission critical Industrial Network. Operator, we can now open the call to Q and A. Thank you. We will now begin the question and answer session. Today's first question comes from Tim Horan at Oppenheimer. Please go ahead. Hi, guys. Thanks a lot. Can you elaborate on I think you said in June, the lab approved the full MAX equipment. Maybe What lab and just a little bit more color around what does that mean? Sure. Absolutely. Thank you, Tim. So let me talk about what we mean by the Federated Rail Lab, the Mission Critical IoT Lab and remind you that this is We're also bringing flexibility that the railroads in these industrial markets have never had before. As it relates to the railroads, in certain high traffic areas, There's multiple rails operating. We like to point to Chicago as sort of the poster child for that, right? All the rails come in, they terminate their traffic there. And of course, that creates logistical and operational issues because there's on the network in particular, because there's a lot of demand for data capacity. In the legacy network, which is going to be retired, the legacy 900 band, the rails have historically had to carve out that spectrum into Small, tiny inefficient networks that each individual rail would operate, obviously compromising the capacity for the system. We can bring a shared network, provide more capacity, and then our software can allocate or manage that traffic to maximize throughput and guarantee a much higher level So that's what the Rail Lab is for. You can think of it as planning, additional planning activity related to the network adoption. I'd also highlight that the rail lab is going to be evergreen, right? This is going to be a lab that we establish and given the flexibility of the network, the railroads are always going testing, sort of looking to see how to optimize traffic, but also how to add new applications because we have the we'll give you them the capacity to do just that. So that's the rail lab. As we discussed on our last call, We've been working with the rails and the 900 in the field for a long time. The shared element, the lab was taken up by the Wireless Cons Committee Under the AAR to the senior most operating group for the rails, and that's where we received the support for the lab. So As Stuart mentioned in his comments, we expect the purchase order for the formal work on the lab in the Q4. And has the Association of American Railroads, have they endorsed your full MAX network? Have they said anything publicly or formally? They haven't formally done that and they won't until they're ready to give us the inertial purchase order. So I'd say that let me just build on that, Tim. The work on the 900 megahertz with the Class 1 rails continues to be very good and collaborative. And of course, Siemens is And armed with us as we navigate the process. And as I mentioned, we have sort of we have gone through this process where the Wireless Comms Committee has essentially taken us up the hill. And I think that the fact that the senior most operating committee of the Rail Association has endorsed the lab, that's a very good sign, quite a bit of validation for what we're doing. I'd also add, as you think about what we're doing on 900, it really shows the complexity of the process, right? We're adopting a new mission critical network, Which is of significant size, this 900 megahertz system. So getting these rails all organized under that centralized coordinated operating groups It's sort of what we're managing through now. And the purchase order, will that be from multiple railroad companies? Or Do you expect individual ones for each each or all? And secondly, if you get the purchase order in the Q4, when do you start recognizing revenue? Okay. So I'll take that second part of the question last. So we would recognize revenue in the Q4. We can set that lab up pretty quickly. In fact, we've already have the basic structures outlined and equipment ready. And then in terms of the order, It's unclear exactly sort of what budget is coming from. We do believe it's going to be supported at the industry level. And in fact, we think the participation amongst the Class 1 rails will be much wider than we thought initially. I'll remind you that most of the work in the field has been led by BNSF and CSX. They continue to be very active, But the labs are also an opportunity to bring the others into the fold. But ultimately, it will be purchase order with each individual rail company, correct? Ultimately, on the deployment, it will be. In terms of where the order comes and what budget will it remains to be seen. And so just to be clear, this purchase order, is it coming from the lab or is it coming from the individual rail companies here? Well, this is the purchase order we're talking about Do we have a sense how large it could be or how large Purchase orders in Q4 to be broadly speaking? Yes. We're not able to share that information today. Okay, great. And do you have a sense how large how much the rails have to spend now To vacate and upgrade the 900 megahertz spectrum, just a higher level sense in the timing when they have to spend that? So all indications are we're strongly positioned to deliver on this 900 megahertz network. But of course, the question is timing, Tim. We can't give you a precise date for the commercial PO and when that starts. We're working closely with the rails and we're earning the business, but the purchase order is going to come when they're ready. We'll be sure to notify our investors as soon as we can. Okay, great. And any sense on how large now you've been And it sounds like more rails and any sense how much they have to spend with you guys to upgrade the network ultimately? Well, we think this The network is in the 100 of 1,000,000 of dollars of potential market, and I don't have anything to add beyond what we've talked previously In terms of market size. Great, great. And then just lastly, just curious on the drones. What can the concrete industry do With the drones essentially to improve operations, just out of curiosity, at a high level what they're using it for? Sure. Reese, would you like to take that? Yes, sure. Can you just repeat which industry you were asking the question about? Sorry, I think you said you won a very large in the mining industry that was more focused on aggregates and concrete. Just curious, just some examples of what they would do to improve productivity? Yes, sure, absolutely. So the initial use case is around stockpile analysis and management. So it's about having a daily representation of exactly what you have in your stockpile yard, your facility to optimize things like supply chain management and logistics, where materials are being moved to and from. So it's really just about having up to date accurate information about how much of any of these materials you actually have. I see. Thank you. Thanks, guys. Good luck. And our next question today comes from Mike Latimore with NCM. Please go ahead. Great. Good morning. Thanks for taking the question. I guess on the American Robotics initial Win's here, Stockpile and the Fortune 100 Company. Can you talk about the rollout with these To customers, just the process there, do they start with trials and then get commercial over time? Just how would that work with these 2? Yes, sure. The short answer is yes. So typically with industrial customers, the sales process that we see is starting out with Trials in the single digit units and then after reaching some sort of success criteria after, Call it 3 to 6 months, that transitions into larger commercial deployments. And so with any of these customers, including Stock Island and the Fortune 100 Oil and Gas Company, part of our initial discussions with them is what does scale look like. Since we received that FAA approval in January, we received a lot of inbound interest, Frankly, more than we can handle. So one of our tasks right now is qualifying who's worthy of being in this first wave of customers And who has the biggest potential to convert to hundreds of units. And so one of the reasons we selected those two companies that we've referenced publicly It's because they have the ability to scale to eventually hundreds of units, call it fairly near term. That makes sense. Good. And then are you finding that customers are willing to pay you under kind of a SaaS model or do some of these guys want to just kind of buy the system outright? Yes, it's a great question. On the whole, most are interested and accept the SaaS based model. There is a couple of industries that based on their kind of historical accounting practices may prefer to shift it more to a CapEx Model, and we're working with them again in the lens of making sure that That fits with our scaling up business plan and we don't want to change too many things For everybody, but no, if they represent a large potential order of hundreds of units, then we're willing to work with that customer. And then any you're doing a lot of investing in American Robotics kind of across the board. You mentioned Software, hardware as well. What would be the next big kind of technology update you like to see for your platform? Yes. I mean, I'd say it's a little bit more on the operations side of things, but technology related. Our big focus right now is scaling up field operations, things like installation, maintenance, Designed for manufacture, we want to make sure that the process of building and installing and servicing hundreds of units It's efficient and goes well for our customers. So there are some technology elements around that, that we're investing in again to make sure that Our customers have the best possible experience. Got it. And then just shifting to the Crayola opportunity for a second. Assuming the lab order comes in, in the Q4, what would be the next step after that? Do they kind of deploy and test things for a couple of quarters and then we get commercial orders after that? Mike, I'll ask Stuart to fill in. But the lab work Is around the element of the shared system, right, as I described earlier. If you think about the 900 megahertz or the rail footprint, I'll say, There's most of the territory is solely operated and on track. And we think that's where the initial build out is going to take place with the shared element coming in parallel sort of somewhere in the process. So we still target with Siemens, The ACCS deployment is 900 and the initial commercial deployments with the rails. And like I said, it's likely going to be in the solely operated territories at the start. Stuart, would you talk a little bit about the lab and how long that will be in place? Yes, I think that's right. So the As Eric mentioned, the federated concept is where they are intermodal, where they are up at where they connect. But as we mentioned, both BNSF and CSX have their existing test networks out in the deployed and those continue to progress. And so I would say that, right, the orders will be coming from The individual railroads and they're not necessarily linked to the lap timing. So the lab timing is really the intermodal focus. So, I think we need you just have you stay tuned for as we make progress with the individual rails to with this human support. And we mentioned The ATCS is being formally launched in September with Siemens and the rails are understanding the value of that product where it both supports the legacy platform and allows for the transition to the greenfield at the same time. So all those things are coming together where the individual rails are understanding the value and then also the intermodal Or where they connect component. So I would say they're not completely linked on As gating items, they're independent. And that would go for the ATCS product, it sounds like? Correct. Okay. Thanks a lot. Today's next question comes from Carter Mayesbach with Forte Capital Group. Please go ahead. Good morning, gentlemen. Congratulations on all your developments. So I have two questions. One is, in the way of projections, at what point will we begin to have clarity on Future growth? And the second question is regarding contracts. So I'm sure there's competitive natures that play in here, but at any point, are we going to know the names of these All right. Thank you, Carter. The answer to the last question is yes. And at the appropriate time, we'll be able to share more details on customers and name names. There's certain for competitive reasons And business reasons, we chose not to on the recent oil and gas customer. I would also add that We have equivalent sized customers in the pipeline in oil and gas. And then as it relates to guidance, I mean, we're investing to Scale in 2 really huge markets. It's a mission critical IoT private industrial networks markets via Ondes Networks And of course, commercial drones via American Robotics. At Ondes Networks, we're working with large customers on really large networks. And we don't have clarity on the timing of purchase orders we're working towards, it's prudent not to put that stake in the ground. However, we're extremely confident in the opportunity in the 900 and other rail networks we've talked about in the past, including 160 and 450. So as we see the inflection and get the purchase orders, we'll be building backlog in the business on Onondas Networks will be much more predictable. American Robotics has best in class technology platform. They have these FAA approvals that allow for faster deployment than anyone else in the industry, and we're putting the team in place to scale. These initial purchase orders are for a handful of Scout systems, and we're working to position those customers for fleet deployments. And as we sort of go through that process, That business is going to get a lot more predictable as well. So that's the answer. I think at the moment, not providing the guidance for And ladies and gentlemen, this concludes the question and answer session. I'd like to turn the conference back over to the management team for any final remarks. All right. Well, thank you, operator, and I appreciate everyone joining us on the call this morning. I'd like to close by reminding our investors that we're bringing tremendous value The commercial and government markets we're targeting, we're leveraging not 1, but 2 best in class disruptive technology And of course, that's OnDeck Networks, software based Foamax mission critical wireless network. And that's with American Robotics' Scout The only fully autonomous drone approved to operate beyond visual line of sight with no human on-site. The markets we're targeting are well into the 1,000,000,000 of dollars in size Andas has made and continues to make the investments needed to pull them through to orders and revenue that we're tracking towards in the We expect a very active second half of twenty twenty one and a strong finish to what is Clearly a transformational year for Andas and America Robotics. We will keep you informed on the critical business development milestones as we achieve them. Thanks again for joining us this morning and have a great day. And ladies and gentlemen, this concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.