Q4 2019 Earnings Call

[music].

Greetings and welcome to the Blonder tongue fourth quarter 2019 earnings call. At this time, all participants aren't any listen only mode. A question answer session will solve the formal presentation.

Anyone should require operating system during the conference. Please press star zero telephone keypad.

I'll now turn the conference over to your host paragraph you may begin.

Great. Thank you.

Good morning, everybody.

Welcome to Blonder tongue, 2019, Q4 and for your financial reporting conference call. Thank.

Thank you for joining us wanting.

I'd like to take a moment to thank the entire board of directors and our management team putting their trusted me as my in my new role as President and CEO since January 1st this year.

Before we begin our presentation.

I'd like to remind all callers that my statements and those made by other blonder tongue represented speaking today will contain forward looking statements regarding future events.

Moving the management you have more prospects financial performance technology.

Logical developments and the evolving trends in the marketplace.

As you know future is impossible to predict.

So I caution you that actual results may differ from those that may be projected in our comments. This morning.

Additional information concerning factors that could cause actual results to differ from the information that we will be discussing this morning.

I would ask you to refer to our prior SCC filings.

Putting our 10-Q filings for the first second third quarters of 2019.

Well for prior years.

Our upcoming 10-K for 2019.

Last years, 2018, and 27 team and our eight case.

With me today are Steve shape, Chairman of the board of Blonder tongue laboratories, and Eric Skolnick, Our Chief Financial Officer, and senior Vice President.

Our remarks will follow in the same sequence.

Following our presentations all of us will be available to answer any questions.

You might have during the Q and access.

Blonder tongue completed 2019 with net sales of $19.842 million, which was a decrease of 8.6% below the 21.7 million we reported for 2018.

These reduced sales resulted in a net loss of $742000.

Contrasted with the loss of 1.339 million in.

In 2018.

These losses were a direct result of reduced sales volumes in DOCSIS compliant and see MTS product.

As well as declines in a particular line of digital video encoding products and traditional HFC distribution technology.

Those losses, partially compensated for by an increase in sales in our NXG digital video signal processing platform.

And our new C.P. set top box systems initiative.

These results are in no way acceptable to the company.

Management or to our board of directors.

The company has already taken a number of measures to improve our future performance and are planning and currently implementing additional changes some of which we will touch on during the call today.

Although the overall results in 2019 were not acceptable the coffee did having number of specific positive accomplishments and successes during the year.

We're building on for 2020 and that we consider significant towards achieving our short and mid term goals.

Before we get into specific actions taken as a result of our 2019 performance I would like to cover details of the company's status and what we've been dealing with regarding the current covert 19 situation.

Blonder tongue falls into in the central business category due to our U.S. based manufacturing engineering design and sales of telecommunications equipment.

That equipment goes out to a large number of telephone cable and municipal fiber optic service operators in the country, both large and small.

The company has been able to remain open for business through the crisis.

Beginning in very early February the company began implementing enhanced cleaning and disinfecting processes on a daily basis at our primary manufacturer and headquarters facility in Old Bridge, New Jersey.

The team has been updating his cleaning and precautionary practices on a constant basis over the last two month additional information about the virus and its attributes had been better understood in reported.

Additionally in early March we move all rolls capable of being performed as work from home.

To be done from home companywide.

And adapted our operational processes accordingly.

I'd like to thank our vice president of operations and head of manufacturing Alan Horvath or his foresight on these topics into all his staff for all the proactive actions that they took wall dependent was in its early stages in the U.S.

I would also like to specifically mention in say a special thanks to our manufacturing warehouse and shipping staff to their direct management and to our process and industrial engineers and or service and support teams for their extraordinary efforts. During this difficult time, keeping our factory running and fulfilling orders.

These are all clearly jobs in positions that cannot be accomplished working from home.

And I'd like to thank those staff for adapting to the difficult situations imposed on them.

During this ongoing crisis.

It's these critical staff, who have allowed us to keep Ronnie.

Also our thoughts and prayers go out to the families in New Jersey nearby New York and all around the country who've been directly impacted by this horrible disease.

As a result of or poor performance. During 2019. The company began an active program in Q2 last year to identify and implement operational expense reductions and find ways to operate the business more efficiently.

At the same time, we implemented significant sales team reorganization and increased marketing efforts to support the range of new products and product features that we released during the year last year and preparing for those planned for 2020.

During the second half of your last year, we incrementally reduced our opex by approximately $200000 per month.

We have continued just work further in Q1 2020.

Ahead of the current coded related situation.

Although this work is not yet complete we continue to develop further initiatives from balancing our opex with our projected revenue streams 2020, and we are prepared to implement all possible actions towards ensuring the company returns to a predictable profitability as soon as the current market conditions allow.

As Kobin related impacts go it's been a daily and weekly developing situation over the last two months.

And we begin to see a small but specific sorry, we began to see a small but specific attributable slowdown in sales during the last week in February.

That's small initial impact grew each week through March and ultimately, yielding an approximate 30% to 35% reduction in revenues last month versus our forecast.

We haven't immediately responded to that impact with the combination of short term oriented expense reductions, including voluntary compensation reductions by all the company's management team.

And we've delayed investments and cost.

We've also begun a process of renegotiating several supplier agreements for the specific purpose of allowing us to preserve operating capital and maintaining higher liquidity in the short term to help us through the immediate health and social crisis.

On a positive note.

The company has continued to be in very active in the open encouraging discussions with most of our surface operator distributor and integrator customers.

By our last count over 90% remain open for business and actively engaging with us on new purchases.

New product and technical discussions.

As well as pretty prospective new programs, many of which being planned.

Our plan to deploy during and following the recovery period, we expect.

Further to this the company separately announced this morning.

I mean yesterday afternoon of an 800000 dollar financing round in the form of the subordinated debt, 100% of which has been committed by combination company management and board members.

We're also in the process of evaluating additional financing options.

Our CFO, Eric Skolnick will cover details of this raise.

Associated benefits, we've gained with our senior lender and more precise detailed following my remarks.

The company has additionally been focused on understanding all potential government resources and programs recently made available for companies just like blonder tongue labs dealing with the current crisis in the financial markets.

We completed over last weekend and submitted an application this past Monday.

For the Federal Government Care Act, they check protection program.

Or for a request a mountain just over $1.7 million.

That number being based upon a calculator biased, but based on government guidelines.

That application included a complete package of extensive supporting documentation.

I do need to caution that the paycheck protection program details of rules and requirements and the individual bank underwrite new policies have been fast moving topics.

Both the company and local banks, who are administering the program on behalf of the federal government.

I've been on a steep learning curves since early last week.

We can currently offer no assurances or guaranteed to ourselves where our investors that blonder tongue will be supplied with any of these funds.

Or any other government funds yet.

Because the material amounts involved in this program.

We will be providing additional status and other information in your pro form filings press releases are both as we learn more.

And I want to emphasize that we'll be running the business now and going forward in the most conservative way possible under the assumption that we will not receive any additional funding sources.

During the 29 during 2019 the company did accomplish a number of strategically important items.

Quoting expanded direct sales of our NXG digital signal processing platform to a number of large medium sized service operators.

As well as product qualifications and significant progress.

In in the sales process with additional tier one and tutor in tier two operators.

We also completed and began to ship at the end of Q4, a world class clear view line of IP video Transcoder.

Deliver fantastic video quality high reliability and digital television compatibility features.

At an extremely competitive price point.

Those are being actively shipped into a number of head end facilities around the country.

We anticipate that the clearview products have the potential to regain at least a portion of our diminished sales in that sector that we lost in 2019.

Our CP program began shipping products to customers in February of 2019.

And over the following 10 month, we secure direct business with over 45 different service operators.

Although C.P. has not yet contributed material profitability to the company.

It has been important in repositioning the company more squarely as a provider of systems above and beyond are extremely high quality and reliable transmission and signal processing equipment.

We have since in the process of promoting to those 45, new customers a wider range of blonder tongue equipment for managing their future video and high speed data service delivery needs.

The 2020, we have begun programs aimed at streamlining and greatly improving our working relationships with all our major distribution channel and integration costs company customers.

These are great companies. The blonder tongue has in some cases multiple decade relationships with and you continue to be key partners in our potential future growth.

These pro sparring progress now with a fundamental goal with increasing the predictability of those portions of our revenue streams.

Now I would like to turn the call over to our Chief Financial Officer, Eric Skolnick.

Thank you Ted.

Net sales decreased $396000 or 70.3% to $5.045 million for the fourth quarter of 2019 from $5.441 million for the comparable period in 2018.

Net loss for the three months ended December 30, Onest 2019 was a loss of $3.842 million or a loss of 41 cents per share compared to a loss of $742000 or nine cents per share for the comparable period in 2018.

The decrease in sales is primarily attributed to a decrease in sales are DOCSIS data products digital video head end products HFC distribution products and analog video headend products offset by an increase in sales of NXG IP video signal processing products and see PE products.

Sales of DOCSIS data products were $828000 and $1.017 million digital video head end products were $1.232 million and $2.409 million HFC distribution products, where it $637000 and 800.

$72000.

Analog video Headend products were $283000 and $827000.

The next GE products were $378000 and $186000 and CP products were $1.286 million and zero and the for three months of 2019 in 2018, respectively.

During the fourth quarter of 2019, the company in conjunction with the introduced introduction of its new product lines reevaluated its existing inventory levels. Accordingly, the company wrote off approximately $2.327 million inventory value, which reduced the gross margin to a gross margin loss.

1 million image at $96000 in the fourth quarter.

For the year ended December 31st 2019, net sales decreased $1.860 million or 8.6% to $19.842 million in 2019 from $21.770 million in 2018.

That was the 12 months ended December 31st 2018 was a loss of $742000 or eight cents loss per share compared to a loss of $1.339 million or loss of 15 cents per share for the company period in 2018.

The decrease in sales is primarily attributed to decrease in sales of DOCSIS data products and digital video head end products offset by an increase in sales of energy products and CP brought it.

Sales of DOCSIS data products for $2.870 million and Im, leaving $583000 digital video head end products were $6.714 million and $10.308 million.

And exceed products were $913000 in a bunch of $86000 and CP products were $3.977 million and zero in the 12 months of 2019 in 2018, respectively.

As a company previously announced it has delayed the filing of its annual report on form 10-K for the year ended December 31st 2019, its annual report.

In reliance on the extensive <unk> on the excuse me on the reliance on the extension provided by the FCC in light of Cobot 19 development.

The company plans to but I was saying report as soon as profitable.

In the annual report the company expects that the report a bit independent registered public accounting firms will include a going concern vilification.

Although the company has actually taken steps to address operating expenses and liquidity and announced today completion of a financing and a favorable modification to disagreement with the senior lender there could be no assurance that there was actions and others. The company intends to take in the future will be sufficient to address.

Concerns related to the going concern opinion.

Regarding the above mentioned, but you've got birds and as Ted mentioned the company entered into a senior subordinated convertible loan and security agreement the loan agreement with certain investors blenders.

Pursuant to the loan agreement the lenders have agreed to provide the company with a term loan facility the facility, including an initial aggregate traunch a loan commitment of $800000 of which $600000 was advanced at closing on April 820 20.

And 200000 hours will be advanced at a later date.

The loan agreement allows for up to $700000 of additional loans under the facility subject to a maximum aggregate amount of 1 billion $500000. Upon the mutual agreement the parties.

The lenders, who are directors and executive officers of the company or their affiliates or not obligated to provide mums in excess of the $800000 committed and or advance at closing.

[noise] the loan agreement has a three year term.

Interest on loans will accrue at 12% per annum compounded monthly and is payable monthly income line by the automatic increase or the principal amount of the loans by the amount of the accrued interest payable for the month.

At maturity the company is obligated to pay the lenders the accreted principal balance of the loans plus any other accrued unpaid interest.

The lenders will have the option of can bring the principal balance up in loan held by each of them and whole unless otherwise agreed by the company into shares of the company's common stock.

The conversion price will be trying to be determined based upon the volume weighted average trading price of the company's comments on on the NYSE American during this time trading days preceding the date a balloon agreement.

Different conversion price may apply to amounts loan facility one living the date of the eight was about knowledge initial traunch.

The conversion right is restricted to limit the number of shares issuable upon conversion until the company received stockholder stockholder approval pursuant to applicable NYSE American rules. The company expects to obtain stockholder approval. How does June 11, 2020 annual meeting of stockholders.

The company also announced that it has in its wholly owned subsidiary or a break holdings LLC entered into a consent and amendment to loan agreement in loan documents. The amendment with Midcap business credit LLC mid cap the company's existing senior secured lender the amendment amidst the October twentyth in 2019.

And then security agreement between the parties and provides for the removal.

400000 dollar availability block subject with Reimposition at the rate of $6666.66 per calendar mum commencing on June Onest 2020.

Removal the block is subject to certain conditions, including the companys, securing additional equity or debt financing. The financings under this facility described the big meeting the requirements of such removal.

Also we like to report that the company has like three home for approximately $1.7 million under the paycheck protection paid.

TPP.

The PPP authorizes, but the $349 billion and forget we believe it's made businesses to pay their employees during the cobot 19 braces.

The loan or a portion thereof couldn't be forgivable, if the company uses the funds to cooperate payroll and occupancy cost an eight week period exceeding the loan proceeds the remaining balance of alone would be payable over two years with the first six means deferred the loan would be unsecured and bear interest at 1%.

Huh.

There could be no assurances that the company will receive alone nor can there be any assurance is there any proceeds I believe will be forgivable.

Now I'd like to open the call up to our question and answer session.

Thank you at this time, we will be conducting a question answer session. If you would like to ask your question. Please press star one on your telephone keypad. It confirmation code will indicate your line is in the question Q.

You May Prestart too if you would like to remove your question from the Q.

At this amazing speaker equipment, it may be necessary to pick up your handset before Christmas start keys.

One moment, please let me pull for questions.

And again as a reminder, if you like actually question you May Press Star one on your telephone keypad is way your question will be in the Q.

And our first question is from Gregory Urban. Please proceed with your question.

Good morning, guys.

Good morning.

Well, what I, what a difficult time.

Yep.

Everyone Yes.

Oh, let's see where do we get number one I hope we can.

The paycheck for TEP protection.

Given that its forgivable have there been have there been lay off.

We've we've we've made a combination of.

Operating expense reductions, including targeted efficiency oriented layoffs last year and we can you those in the early part of this year.

They were very selective in very targeted towards our efficiency goals.

And those all preceded us coming to understand the potential and now and now real impacts of the coated.

Jewish and since we.

Since we recognize the impacts of the covert situation, we've since taken very specific non efficiency oriented, but but very specific targeted short term.

Layoffs and furloughs related to match the level of business that we've that we continued to see through March a that I that I that I mentioned earlier in my remarks, So yes, we have.

Would it.

With the ability to get the the loan from the Paycheck protection.

Program would that cover.

I guess it wouldn't cover the layoffs or reduction.

Heard last year, but that are.

The ones that you may have to implement now.

So again all the actions we took that were specific to the current covidien related situation, we took them and they've been communicated to our to our to our employees in our staff and our management.

As very specific short term actions. The P.P.P. program is giving us the ability to potentially receive some relief in the short term to.

Potentially get us through the.

I think in theory, the bulk of the potential impact to to them get so at least I believe that's what the government's intentions are so are you are our our planning revolves directly around that intention of the program.

And it also erupts directly around.

What we will be committed to the government and doing if we received those those funds and that is to.

Run the business.

Reverse all the short term related actions that we have on our current staff and run the business.

At full capacity for for the period to to help relieve the pressure on the economy, and ER and and work towards the towards the stated goal of trying to get to get the economy covered as quickly as possible. They didnt that is our plan and all the actions that we've done in the short term related to.

Furloughs and short term layoffs are reversible with very short notice.

Well that's good that's good to hear.

The cut back of operating expenses.

That have had had had the cut into the R&D.

May affect the ability to design and roll out you know products.

Needed products in the market.

We've we've done some but we've been extremely careful to ensure that the impacts are minimal and we've done a lot of.

At work talking to our employees related to those to those reductions they've been they've been they've been taken with with incredible care ensure that.

At the impact is does exactly what its intended to be which is very short term very targeted and that we can recover rapidly after we see the.

ER.

The ramp or one can better predict what we think the ramp is going to look like on the other side of this will be able to recover that that that capability as quickly as possible I I don't want to go into specific detail, but we've done it.

<unk>.

In the smallest way possible in the most careful way possible.

The.

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Related Lee do we have the products to match customer needs now I know there was some discussion of this on the last call.

You know, giving that changed to the technology trends.

Transition that I assume is still occurring.

Are we still able and.

In the feedback that you get from customers potential customers able to meet their needs with the current product line and the lines under development.

Well, we believe we we are meeting their needs and we are we're finishing up what we believe our are the final.

Sort of straggling features and functions of our NXG product line right now those extend to the support of traditional analog television for output on or NXG. They extend to some other sort of us a affiliated.

You know I I, frankly, I wrap a lot of them up into sort of loosens category, the what will be coming out with that capability.

Approximately mid year, we're we're working on an HD FDI capability. So all all the remaining features and functions of NXG. In particular are all based on specific Oh, both large and medium sized customer request. So we know there was an immediate market.

For every one of those features and functions were developing now and we'll be able to ship those products as soon as they're finished in the R&D cycle. So if you if you fast forward to.

The Q3 timeframe were roughly expecting.

Yeah, I cannot foresee any additional features functions of NXG that will remain on the road map. After Q3. This year at the current time, so that that but that really gets us to a big milestone, which is not that we can't sell NXG today, but because we are and we're making great sales.

Progress with customers were making good actual skills progress with customers.

But there are those couple of loose ends that are sort of check checks and check boxes.

That qualifies for for.

Finishing some sales cycles that were in the middle off right now I think I think beyond that then were mostly focused on.

Wrapping up transcoding.

Features and functions, we launched a great product line at the end of last year called clear view, that's been a we've had a great initial success with that a bunch of customers of have lined up a current and potential sales.

So so that's all looking good.

Did I answer your question fully yeah.

Okay, what what do you think will be the major driver going forward as far as product lines go.

I ask because oh looks like.

We had it sort of a flattening and growth of the set top box initiative.

Which I presume might.

Show, an incremental growth over the quarter, but.

So that's right that's what.

What are your banking on.

As far as product lines for for growth over the next let's say the remainder of the year.

Right. So all the parts banking on.

Versus upside potential so what the company banking on is that our our newest video and and data transmission equipment in the form of our NXG are clear view product, our or by the products are or.

He MTS products and some other products show good signs of growth this year and those are the things where we're currently banking on in the in the current internal company forecasting and planning.

The.

Other products such as C. P E books, a lot of strategic value they have the potential for being an interesting business on their own and we're working on those actively but.

We're not we're not relying on those to happen in order to.

To fund the business or or from the growth.

Going yeah.

Mentioned going to the.

<unk> sales.

As one sentence and.

The paragraph today.

That.

It's provided a material and it hasn't provide yep provided the material impact that's expected.

But it's better positioned the company for future system sales versus individual or function by function sales could you elaborate a little more on that.

Sure I mean, the history as a company put really simply the history, the company's been providing really high quality high reliability, a great value oriented U.S. built transmission equipment and so when you're a systems operator like a like a big like a big tier one or two cable.

Oh, or telco or or municipal fiber company, you're you're you're delivering entire system you have to put a whole system together in order to deliver service customers. If they if you're delivering data services you got to you've got to you Gotta look at how that data gets through either your HFC or your.

Fiber optic network all the way to the customers Homer in in the case of wireless operators, they're doing that wireless lean something in some cases.

And if your video if you're running video services, you've got devices in the home a if you if you're probably data services you got some devices in the home as well so they the operators who are our and the end users of our equipment. They think of their of their service offering as being delivered by a complete system.

We've traditionally as a company.

Shoes that chosen a individual features and functions of that system that we're particularly we believe were particularly good at Oh designing and building.

Mostly traditionally in the transmission side and so it's.

Then you know amplification and.

DOCSIS technology and its been a including video encoding and pegging coding audio encoding we picked different pieces, where we believe the higher value. The company can can bring to shareholders in the future is by positioning the company to have.

But the transmit inside the distribution side and some selective elements of the in home side, where there's a high value when a high sustainable business I'm, so that way when and when a customer looks at us and surface operator customer looks at us.

They see more of a company has looked at at the total.

Picture and is more aware of the kinda challenges technical challenges and financial and service operating challenges that that customer has so they tend to treat.

Systems provider with a little bit higher regard and a little bit closer relationship they do individual.

The company's to provide individual features and functions. So the over the long term, that's where we're trying to do.

Bring higher value and change the kind of relationships, we have with the end decision makers industry.

Well, thanks for that answer pretty elaborate I assume then that's meant from.

Reorientation of marketing sales and marketing as well as manufacturing in house manufacturing.

You know as as you change your focus.

Your presentation to various customers. It's it quite frankly, it has not been a huge change within the company and the costs that we took on we took on that product have been counterbalanced by though the margins that we got on that incremental.

On that and commit incremental revenue.

So I mean, what we have what what's helped us in the transmission as we in the transition I should say, which is not complete yet, but what would help us through that that change was we have a number of staff that backgrounds at the systems level. So we were already kind of had some untapped resources to apply.

From a knowledge base perspective.

In that area.

Incrementally, we only added a few staff.

Oh, Thanks again a.

Final question I think final for now is the write down in inventory could.

Comfortably say what that was what lines that was or the that those were and whether you anticipate anything.

Approaching the significance of this write down in the future well I'll also your first but I want to hand part of this off to Eric but I want to make sure you understand we've done significant efforts.

And we recognize this the issue last year to make sure we will not happen again at this kind of level. So you know I can't give any guarantees, but we've taken significant efforts to.

Focus our attention to the problem reduce it work specifically at the kind of operational activities that will.

In the future lend themselves toward the possibility that we have higher numbers of inventory turns on a yearly basis and that's fundamentally the cost of the same kind of activities that will reduce our risk of being in that situation the future but to answer your specific questions on product lines. Eric do you have some data you yeah.

Thank you can yeah, I would prefer not to get down the actual.

Details of that.

[laughter], but but I agree it but I agree with everything that Ted said from a perspective basis that we've taken steps necessary to.

Sure that 11 this level will not occur in the future. It if we're able to succeed Argus.

Right. It was a well was obvious to me or [laughter] seemingly like it.

Going to have to happen it sometime because the inventory budgets climbing over the life you.

You know three four or five corridor.

Yeah.

Oh, great surprised just don't have anything.

You know is larger than that again.

And as you said get <unk>.

Good thing down to where they know the turnover is.

A little greater.

So it's it's a great. It's a critical metric going forward it really as.

Well I'm.

Haptics is.

My I feel somewhat handicapped by not having the.

The Q or the 10-K, but so but I assume that will be out before.

AH you report again in five or six week.

Yes.

Okay, along with that perhaps the proxy.

We're not sure as the timing of the proxy yet.

But it'll it'll be the 10-K will be first in the proxy will be after that.

Well good luck guys.

Good luck.

<unk>.

Appreciate the question.

And again, if anyone has had any questions you May press star wondering telephone keypad.

And it seems there no more further questions at the moment.

So do you follow handed back where we sit tango actually I'm sorry, I do have one more question we have a question from.

That makes him a please go see was your question.

Oh, Hey voice.

Lease where do we stand on that.

They did a sub the sub lease was executed and it started in March and it's a two year deal and so far or tenant as a been it's because that's it.

Okay. Good interest.

Total dollar amount.

No no one.

1.1 million.

Well, it's a 1 million yes.

It was it a number just over 1.7 million.

Okay. Thank you and.

I guess.

<unk> initial traunch on this alone it's on a five day look back so that's in that worth somewhere in that 50 to 60 cents conversion rate I guess.

Well, yes were whereas the process of compiling the data. So we just got them, we want to make sure that we have the correct data, but when we talk about the exact pricing, but yet.

Yeah, maybe five days prior to April <unk> correct.

Correct, that's right yes.

Okay.

And.

Just looking here so did any of the management team participating loan or is it just board members.

Yes, so both.

Good.

I was just same both both management and board members yes.

Okay.

Because I'm just <unk> here I didn't see anyone on the management side. It I don't know if it's under different entity.

Assuming is perhaps we talk offline about that.

Yeah. It if they're different vehicles that were used to to make the investment.

Okay great.

[music].

So total amount here, 12% per annum.

Have you thought about doing your shareholders rights offering.

No we haven't.

Okay.

Ah we have that we had to raise the money fairly quickly a rights offering is a very expensive endeavor.

It requires mailing to shareholders printing of legal documents.

Probably have to do an S. One too that the quarter million dollars.

That wasn't in that's not in the cards right now.

But you're going to be mailing out the proxy.

Report anyway said to be contained as part of that right now, but it has an S. One filing is a different story, that's there's all kinds of reps and warranties and legal work that goes in that it's a minimum cost of quarter million dollars, if I want us one.

That's what you have the different <unk> rights offering.

In terms of wanting your shareholders to participate I guess in the.

Okay.

And any suggestions or anything that you'd be looking.

Well accredited investors, we have a investment banking firm that that is handling this force and or if there isn't a credit investor to that.

This is meets the criteria.

Spending in ready offering that that investment banker can contact that.

That individual where that institution.

Maybe you can a supply that information I can but I don't want to do it on this call.

I understand I understand.

You can call in cry afterwards, if if if you know.

I appreciate it.

Right I appreciate best of luck with everything going on and look forward to see next quarter.

Through the storm here.

Thank you.

Thanks, very much like <unk>.

<unk>.

And just like we have reached the end of the question and answer session and I will now turn the call back over to Telegraph.

Great. Thank you for the questions and.

And.

And so all kind of wrap up here as we have in prior years.

The myself and the whole management team the board would really like to thank all the dedicated blonder tongue labs team members for their continued efforts and accomplishments.

Especially for continuing to work through these very difficult current covered related circumstances that had been impacting everyone in the company in different ways.

It is the blonder tongue people that are responsible for our fantastic product reputation.

Our product high reliability, great technology and overall value.

Thank you all for participating in the blonder tongue financial reporting teleconference. Today.

We look forward to speaking with you at the next teleconference. Thank you.

And this concludes today's conference and you may disconnect you lines at this time. Thank you for your participation.

Thanks very much.