Q1 2020 Earnings Call
[music].
Good morning, ladies and gentlemen, thank you for standing by welcome to Calix, It's that's cool Twentytwenty results conference call during today's presentation.
Bringing a gene edited food product to market and we intend to bring additional products to market focused on two important pillars.
The first pillar is health and wellness, where examples of product concepts. We are working on include projects that are heart healthy.
Inflammatory.
Higher and fibre.
Better tasting or higher protein.
The second pillar is sustainability.
For bringing products to market that offer sustainability benefits, including the potential to replace imported oils that may be driving deforestation and other climate change, replacing fossil fuels with plant based solutions and enabling differentiated production per acre to improve bio diversity.
We believe <unk> differentiates us from most of our competitors.
We accomplish these objectives through our accelerated plant breeding technology called talent.
Developed in part by Calix, co founder and Chief Science Officer Doctor, Dan voiced to US talent is an advanced breathing techno Oh Gee that allows for precision targeting of existing jeans within a plants Gino.
Are scientist kinda slack for desired characteristics accelerated breathing in a fraction of time use in traditional methods and it mimics how plants could develop in nature.
We can assess the viability of a trait in less than two years with as little as three more years and needed to reach commercialization.
We have a <unk> a robust development pipeline with 18 products at various stages of development, including several in both soybeans in him and projects and other crops, including wheat, alfalfa oats and others.
We intend to bring these products to market through collaboration or joint ventures with partners, where we leverage our science and their commercial expertise to commercialize the product concept.
This is an asset light approach that is expected to result in nondilutive financing for the company and a high margin recurring revenue stream as projects are commercialized.
We can also bring products to market through an integrated business model, where we leverage third party assets in the agricultural supply chain to process grains and sell the resulting products into the marketplace.
However, this model requires more capital and is lower margin than the collaboration and joint venture model.
[noise] moving onto the first quarter of 2020 results.
The coping 19 pandemic has caused an unprecedented global crisis.
I'm very proud of the dedication and resilience of the Calix team end up the actions we have taken in response to the covert 19 pandemic to provide to protect our employees and our business, including having all workers, who are able to work remotely do so since early in the crisis.
Most of our laboratory workers remain on site at our headquarters.
Protecting our scientists and their projects is critical to our future and thus far we have handled the trip the transition without disruption.
I really appreciate the actions of our team to help ensure we say safe and on track.
We had a strong start to the year and <unk>.
Need to execute on our business initiatives during the first quarter, we began to see the impacts of covert 19 pandemic across the country.
And it's impact on the economy.
The Coven 19 pandemic has had significant adverse impact on the food industry, especially in food service, which has substantially reduced food industry demand for vegetable oils.
We have experienced lower demand for Ohio Lake soybean oil corresponding to the overall lowering of demand for all vegetable oils.
We have seen the impact of the coping 19 pandemic on the protein supply chain, which is likely to have an impact on the demand for Ohio Lake soybean meal and the price we may realize.
In response to the changing demand pricing pressure and uncertainty among our customers and target customers caused by the cobin 19 pandemic.
We have adjusted are sure are short term crush strategy and have cancelled crushes scheduled for late May June and July 2020.
This change is expected to ship product shift product sales efforts into the second half of 2020, when potentially customer demand may partially recovered depending on the timing and the extent of the resumption of normal operating activities among our customers.
As a result of the coping 19 pandemic, we have suspended or 2020 guidance for revenue and gross margin as adjusted.
And have developed plans to reduce expenses over the remainder of the year.
We received a small business administration paycheck protection program loan of $1.5 million in April.
Recognizing that we are a small early stage enterprise with a single product that burns a significant amount of cash annually.
And these unprecedented times are access to capital has been impact.
Larger and better Capitalised and to protect our team we opted to take and expect to keep the loan proceeds.
We will determine in the future, whether we request forgiveness of any of the loan.
We are pursuing sources of cash through high margin collaboration agreements and licensing opportunities.
And are reviewing all other cash flows.
As a result of these actions we updated our 2020 casting usage to between 30 million and $34 million.
And updated our cash runway to late 2021.
We continue to evaluate additional strategies to further reduce our cats are cash usage.
[noise], we've provided excellent service to our world class customers, who represent a substantial portion of our 2020 oil.
Revenue.
Deliveries of oil to our major industrial customers continue uninterrupted.
We continue to sample and test our high Lake soybean oil with large consumer package good companies.
Are 2020 contracted acres achieved our 100000 acre target and we sold out of seed for the 2020 crop.
We are launching are five news seed varieties and expanding the states, where we grow to five.
We launched R.E. Commerce platform and April this platform, which we are using as a pilot and can easily be leveraged across other products provide us with several benefits, including enabling consumers to purchase our oil directly anytime of the day and obtain real time feedback about the product.
It is also an efficient way.
For us to distribute samples to Influencers growers and investors and is in response to demand for our product. We did not enter this pilot with the <unk> expectations of building, a consumer brand or making a significant investing.
And as a result, do not expect significant revenues from the platform.
Dot com.
On the technology front, we continue to build out and improve our gene editing technology Sweet.
We license to a brand new a breakthrough from the University of Minnesota invented in Calix co founder Dr. Dan Void tosses lab.
That will enable us to significantly reduce the time needed to develop trades in certain crops.
I'm pleased with the four product candidate advancements.
In our development process in the corridor, especially considering the unique nature of each.
Are innovative technology continuous improvement and robust scientific team of experts are what's allows us to maintain a competitive edge and our head start in the gene editing space.
In the near term week.
Expect to launch our first hemp product improved plans to address keep commercial product.
We expect the velocity of our revenue offer opportunities to accelerate as we build up a robust portfolio of commercial products.
Addressing several different markets.
For our efforts to secure new collaboration agreements with industry partners, we aim to sign multiple new agreements this year.
We expect collaboration agreements to provide us with cash milestone payments to further support our liquidity.
<unk> and our vision that K. lakes isn't innovation platform company.
[noise] with this I'd like to hand the color.
Over to Chief Technology Officer, Dr. Travis Fry for an update on innovation in our product pipeline.
Thank you Jim.
As Jim mentioned, we continue to have many scientific highlights, culminating with our updated already pipeline in a licensing of new technologies to further improve our g. editing capabilities.
On the R. and D. fried, we've advanced for projects or development process and the first corner.
Enhance we expect to launch our first product and the second quarter.
Improved plans to address key problems facing <unk>.
Marking the launch our second commercial products.
We are able to move quickly to bring this product to mark.
Yeah, My leveraging our patent pending production system, and and all that X. well.
Are pipeline projects each address a significant opportunity in their respective markets <unk> new opportunities for us.
One Great example is or high fiber, we'd product in which we have been able to deliver at least three times more dietary fiber in traditional like wheat flour.
<unk>.
Exit launched just product as early as 2022.
Discovery stage or later across alfalfa can all hemp oats, potatoes, soybeans and week.
But the majority and so he gains in half.
We expect to launch at least six product candidates do 2024, including the hand, and wheat products I mentioned earlier and also including on top of product candidate and 2021.
And three.
Shall product candidates either the are integrated business model or in collaboration with their parties.
This is particularly exciting.
It's like industry, leading firms to bring our products to market in a high margin capital light manner.
I'm excited about R., and D. pipeline and I'm working to expand it along with others inside and outside organization, advancing our technology and expanding or I.P. portfolio, enabling us to continuously push the boundaries of what we previously thought was possible through talent.
Through this.
We'll explore new target crops traits pathways, all I continue into the innovators and pioneers in a plant gene editing space.
Just support these actions in the first quarter, we made two major technical advances.
First we license a new technology from the University of Minnesota, <unk> increase planting editing efficiency that enables us to eliminate the need for tissue culture in several crops. We anticipate that this will help us maximize our core talent technology to bring products to market faster, while avoiding incremental already investments for now.
<unk>.
Yeah.
Second we continue expand or intellectual property portfolio with newly granted U.S. patterns and applications for new patents families.
Granted U.S. patterns cover expansion of the core counted patent family with claims directed the methods.
For generating gene edited plants as well as an additional saving private concept.
New provisional patent applications, and enabling technologies, new product concepts in both soybean wheat and additional germplasm varieties from operating from Ram.
In addition to are already.
Blockbuster products to the marketplace. Some examples of products very aggressively pursuing are sustainable l. <unk> replacements, what we would.
Areas of protein and flavor, where we explain products and project ideas.
That improve the taste.
Of protein supplant base proteins.
We also have multiple now mix and analytical expertise to accelerate market introductions.
In summary, we had a strong start to 2020.
Setting the stage for an exciting recipe year.
Oh is this I'd like to hand over to call to keep blanks or senior Vice president of sales and marketing burn up.
Date on our sales and marketing efforts for a highly actually being oil and meal.
Thank you travel.
Oh and now like to discuss the.
Progress made during the first quarter for our soybean products.
The currently target sales of our how like solving all to food service food manufacturing animal nutrition and industrial market segment.
Oh.
Most of our oil revenue in a quarter was for my World class customer active in all four of our premium all market segments.
We have enough on hand supply their remaining orders now through the early fourth quarter.
We're also now supplying or how like so I mean, all to the top two food service distributors in the United States No demand on this channel has suffered as a result of covert 19.
We are continuing to sample and test our how like solving all.
Down on supplying their customers not on making changes to products rolling out significant innovation.
Are soybean meal customer base has been expanded both geography geography quickly and two additional protein production markets. We also have seen our average price premiums improve over the past quarter compared to the third and fourth quarter of 2019.
Are 2020 contracted acres achieved our 100000 acre target and <unk>.
Presented a 278% growth over our 36000 planted acres and 2019, surpassing are stated goal of doubling soybean acreage annually.
We're also sold out of C. for the 2020 crop and see distribution is underway deliveries of seed or on schedule. When we continue to monitor the distribution network.
Includes the five new varieties, we launched for 2020.
R.X. amount of our share of the 2020, how lake soybean acres is 25%.
<unk> gains are driven by the expansion of distribution into Iowa, Nebraska in Kansas given has access to work 45% of the soybean acres are planted in the United States.
Starting now to the impacts of the code.
In 19 pandemic. It has had a significant adverse impact on the food industry, which has substantially reduce food industry demand for vegetables, beginning in the last week. So the first quarter 2020, and continuing into the second quarter of 2020.
Mm.
We have experienced lower demand for our how like soybean oil corresponding to the overall lowering of demand for all all has driven lower prices and we believe our highlights soybean or maybe particularly impacted by impacted by lower pricing within a premium or category.
Looking for and we expect.
Remained depressed into the second half of 2020 and possibly be on.
We currently target sales of our how like soybean meal to dairy poultry and pork producers.
In 19 pandemic has impacted protein processing facilities, several processing facilities temporarily closing or suspending operations, which is impacting the upstream operations in the industry.
Covert 19 impact on protein supply is likely to having a corresponding unpack onto the man for our how legs soybean meal.
Looking forward, we expect prices for soybean meal to remain low end, depending on her sizes soybean meal <unk> demand may also be depressed into the second half of 2020 and possibly be on.
In response to changing demand.
Hmm pricing pressure in on certain him on our customers and target customers caused by the coping 19 pandemic. We have adjusted are short term crush strategy and have cancelled crushes schedule for late May June and July 2020.
This change avoid storage costs for all and is expected to shift product sales efforts into the second half of 2021 potentially customer demand may parsley recover depending on the timing in the extent <unk> assumption of normal operating activities.
On our customers were also accelerating the purchase of the remaining 2019 green crop, which was originally expected to be purchased before August 31st of 2020, enabling us to take advantage of current soybean grain prices.
Oh now hand, the software I see a phone bill co Shaq will give you an update on our first quarter financial results.
Thank you key.
Today, we issued a press release, describing our first quarter 2020 result, and we also file their form can't you. This morning. Both of these documents are available on our Investor website.
I'd rather be from high Lake soybean oil and me on the first quarter of 2020 increased 2.2 million two $2.4 million.
Cross was driven by 1004, and 40 points volume 44.2 capable product mix, partially I sat by 70 points.
Pricing.
Hi, like slightly Neil was 87 per cent of revenue in the first quarter of 2020 compared to 92% a year ago.
Most of oil revenue in the corner was from a world class customers can attack of it all for premium oil target market segments. If you if there's a plant based alternative to synthetic fluid.
Cross margin has reported decreased 1.6 million to a negative 1.5 million in the first quarter of 2020.
Reflecting the higher costs, we're experiencing it's early stage of commercialization of our highlight soybean products gross margin has adjusted non got measure wasn't negative 1.2 million or negative, 49% as compared to what negative 1.5 million or negative 63% has reported on her gap.
Earnings really provide the discussion of gross margin has adjusted and a reconciliation Oh gross margin most comparable gap measure gross margin has adjusted.
Argue expenses increased $568000 to 2.8 million in the first quarter of 2020.
By increased personnel costs professional fees and non cash compensation expenses, we expect r. and d. expenses to remain stable or increase as we continue to focus on our technology and bringing projects developed with collaborators to market.
Selling in supply chain expenses increase $676000 to 1.6 million in the first quarter of 2020.
By increased personnel costs, and allocate expenses, including $273000. A section 16 officer transition expenses, partially offset by $314000 and lower non cash compensation.
Due to the impact of the cold in 19 pandemic, we generally expected decrease in selling in supply chain expenses due to decrease sales and decrease marketing costs.
We will also be targeting.
<unk> Oh supply chain expenses as part of our overall expense reduction efforts in response to the pandemic, which we expect to reduce selling it supply chain expenses for the balance of 2020 as compared to the first quarter of 2020.
Gina expenses increased $558000 to 4.7 million in the first quarter of 2020, driven by professional services expenses and increase depreciation.
We will be targeting g., an expense as part of our overall expense reduction efforts in response to the pandemic, which we expect to reduce June expenses for the balance of 2020 as compared to the first quarter.
That last increased by 3.7 million to 11.1 million and the first quarter of 2020 and that loss per share. It was 34 cents per basic undiluted sharing the first quarter of 2020, and increasing 11 cents per diluted basically can do to chair from the first quarter of 2019.
I just leave it got a non got measure increased by 2.6 million 8.2 million in the first quarter of 2020, driven by the changes in operating expenses and the increases in negative gross margins described above.
And a 570000 dollar decreasing interest expense driven by lower rates lower balances and I realize losses on short term invest.
Our earnings released provide to discussion of adjusted EBITDA in a reconciliation of that measure to net loss.
The most comparable measure calculated under U.S. gap.
[noise] net cash using the first quarter 2020 was 12.6 million compared to 9.6 million in the first quarter of 2019, driven by the increase in that loss of 3.7 million, partially offset by a decrease in cash use for payments of operating liability, primarily the result of higher cash payments to suppliers and related party in the first.
Quarter of 2019.
Cash cash coven short term investments in restricted cash total 47.4 million <unk> March 31st 2020.
Due to the covered 19 crisis, we've observed changes in demand across the oil markets and declines in exchange traded prices for both oil and meal.
As a result, we paused or crushing refining schedule and expect product sales efforts in the second quarter to shift to the second half of 2020.
We're pursuing sources of cash too high margin collaboration agreements and <unk> licensing opportunities entertaining further action to increase financial flexibility in liquidity.
Quitting reviewing operating expenses adjusting the timing of green purchases in the fourth quarter to the following year and postponing nonessential capital expenditures.
Dollar loan under the small business administration payroll protection program implemented as part of the cares Act. After a thorough management review, we determined that the current economic uncertainty made the low necessary to support our ongoing operations and allows us to continue employing our team.
<unk> through this unprecedented tax.
On March 5th 2020, Taylor issued 2020 financial guidance for revenue adjusted gross margin and cash usage, which did not consider the impacts of the covert 19 pandemic.
Due to the high degree of uncertainty created by the pandemic end the challenges of accurately predicting the specific extent are duration.
19 pandemic may have on off.
For 2020 revenue 2020, adjusted gross margin.
In addition, considering in test data reduction in cash expenditures Calix now expects cashier sitting 2020 to be in the range of 30 million to 34 million.
<unk> from previous 2020 cash usage guidance and 34 million to 38 million.
These reductions extending the 2021 as well with these actions we expect our current cash runway to now extend too late 2021.
We continue to evaluate additional strategies to further you reduce our cash usage.
I would now like comparing to call back to Jim.
Thank you Bill.
Well the immediate future is uncertain what is crystal clear is that Catholics must act judiciously tend decisively to six.
We have taken action delivered our cat cash expenditures, both this year and into next that enables us to extend our cash runway into this initiatives for customer advancement and soybean margin up.
<unk>.
Redrawing me and supply chain teams have word to ensure a 2020 acres are able to be planted.
We have maintained the pace of our meetings with some of the world's best companies on proved our gene editing platform expanded our Patton, an I.P. portfolio and have driven forward R.R. and d. programs.
I'm incredibly proud of our team and look forward to sharing more on are developing story at the upcoming B.M. low.
<unk>.
<unk> Global farm to market Virtual conference on May 13th and then at a future date, providing more information.
But our technology, an r. and D. pipeline.
With that.
Yeah, I'd like to open up the call for any questions [noise] operator, Please go <unk>.
Yeah.
It was to ask a question.
That's okay, Oh and by the number one I mean <unk>.
Okay.
Yeah question.
Well pause and I'm entirely.
Hmm.
Yeah.
That's not Securities Corporation. Please go ahead.
Alright. Thanks for taking my question is just a couple from me here. So first I'm wondering if you can't elaborate a bet on the kind of the came into the hemp initiatives that you're describing ami talking about it being in the pilot stage this year with other projects expected into one.
'cause crop overall is going to effectively remain in the pilot stage for the next time.
Like spend this is Jim Yeah. We're excited this this project came up and we'll be launching here in the second quarter, but it's really a a standardization project for us to address the common issues or help.
Build a <unk> a chassis for the common issues facing him hip growers. So we want to assist in making him abroad acre crop.
So there are certain things that need to be done to assist in optimization and mechanization and other things that you need to be.
Well it really provides an alternate economic model.
Growers is hemp grower with with certain brought it problems in that crop.
We believe are growing expertise.
Houston in talent tools could be used to assist in future concepts already focused on in in disgust in today's market like the potential wellness attributes and uses the Hoover strong Green building materials, you says hey.
Really looking at ways to reduce risk or provide new profiles for consumers. So that's that's basically our plan at him and we're tickled to death to be getting started on it and we think this build up and had started an.
Is exciting for us and it it also lets us leverage what we're doing and soy beans, a lot of this r. and d. and the techniques have ever really helped us on both sides, but we really think that's another reason why this'll be a strong area for us.
ER turning over to <unk>, maybe I missed the exact acreage number it but you know in the past you you.
Or or contracted at the time of of report I heard the NFL what was it an N.F. nodded their reason why while you're not able to provide that exact number.
Well we should.
There with you before that we reached fairly early I think in February the 100000 acre, where we bringing these five new varieties n., we've replicated the seed in South America got it back and ready to plant. So we'll have I'll always have some extra seat.
Mentors for re plants in case, there's a a a weather event.
We're focused on that 100000 and <unk>. The reality is were less than half planted but we're way ahead of normal and last year for these areas that keep.
This kind of statistics at U.S.D.A. so.
Thousand acres in the ground.
Okay.
On the on the commercialization front I mean, I I, certainly certainly understand that the the challenges in the current environment and come up with commodity prices and you know the market overall, but I'm wondering if you can talk.
Like a bit about the you know your ability to how your ability to realize a premium all over the past 12 months, maybe in advance of you know in advance of cover 19 really really taking hold.
You know we're was your <unk> did you see pricing power thing higher than you know substantially higher than commodity prices and ER commodity commoditize alternative you know or or where you. Realizing you know pricing really kinda closer to that number and how did that number evolve here over the past you know.
12 month herself.
I'll start then I'll, let bill talk about margin numbers, but.
We're excited if it really seems that this focus on high alert actually begin as an alternative to <unk>.
Anable options.
Taking off we saw a big demand coming into the year and in some spot shortages of some of our competing prob products that really got us interested in in a goddess exposed to a lot of customers. Unfortunately, now with with the shut down to the restaurant industry and other things. That's that's alleviated some of those supply issues and.
So we're back to now.
Selling so on the margins side, Keith and build you want to know band right. The changes in the commodity prices, which are the base portion of the price that we capture especially in the landmark and I've really <unk>.
Oh and in the first quarter and we certainly saw that <unk>.
But the premiums the heat and his team or working to secure from a variety of potential customers were in the range of what we've been expecting.
From the beginning of commercialization journey.
And a meal side, we've yeah. Those prices also I bet Ya you know been very volatile right, depending upon which week you pick in March you could have been $40 different.
And we we work through our risk management strategies to protect the.
Which have proven to be successful and we were seeing a nice pricing versus the board on the meal side as well.
With a very tiny you'd want to add.
Like you get it thanks that.
I think that that doesn't from your thanks, guys, all <unk> or you know navigating the current environment here.
Thank you now.
Oh, Yeah next question <unk> I like stand up so high pitched, yeah right. Okay go ahead.
Oh like the morning. This is that Kevin extract I'm for Lawrence actually jaffray's.
I just have one question, it's regarding R. and D. collaboration so I get through just wondering you guys. Many update their and maybe how current of Irish and of course economic eat certain.
Yeah, it's impacting yarn d. collaboration ears.
Sure a great question you know we're being current issues are projected issues in the marketplace. So our global customers or the or the players that we're talking to haven't changed their mind about preparing for the future. Because we're we're we're talking about something outside of 2021, and hopefully 20 hopefully.
Pandemic won't pick us that far I'm pleased in that we were pretty adept in in the world is getting more adept at keeping meetings on the calendar getting our video.
Conferencing expertise in and people really sometimes.
Being even more accessible now that they're not traveling so we're on track and really pleased with how we're managing projects and project time lines on collaboration even in the face of thank you.
Okay once again.
Oh, good question, Hey, pet dog that <unk>.
Yeah mine.
Yeah next question parts are not that label, yet I'm laying in bed outline. It's go ahead.
Good morning, you environment.
<unk>.
Mention the the impact of of of the pandemic and the fact of pricing is down and the interruption in.
Food supply industry and livestock and.
Mm.
It's a different customer sources <unk>.
<unk>.
And and just what the pricing movements have been.
As well as any kind of shift in the market that's changing in consumer behavior.
Robert This key thanks, thanks for the question.
No, we we try to spread our our segments in our channels out <unk> to sell our products, but with cold in 19, you know, it's it's somewhere probably at least around that 50 per cent as far as what's been impacted and some channels is as high as 90.
Per cent, but I Ain't using 50 per cent as an indicator would probably be a good number.
Okay, Great Dawn on meal and livestock feed.
Is that something that that you think is gonna be contain too.
Particular quarter or heard reduction going forward or any kind of indications or sense of what's going on in the market.
So that's that's a good question, but the reality is we don't know how long this is going to happen. It continue this.
This and also we're looking at opening up slaughtering houses again or not right. This is just a great uncertainty around around that and how that affects producers or what they're doing with heard size is is interesting as well as the soybean base price moving up and down so Robert's a great question.
If you can telling me how long this is going to last I can give you a better education, but it's.
It's we're watching it and hope hope, hoping for a quick recovery.
Okay, well as soon as I figure out how long it's going to last.
Right away.
[laughter], Let me give me my dog.
[laughter], Yeah, Yeah, My Nobel Prize will be ready.
The other thing is.
Just in terms of the planting.
For for this year and the the.
Post momentum crushes and an impact on sale is there any indication that this is gonna be contained to one year or fall through or just too early to say.
Yeah.
No what what we do know is we're planning to plant. This hundred thousand acres. This year and then we'll see how long the this macro environment last and we'll make decisions there.
So what we do know is what we've reported is that we.
Cancelled our crushes through July we're planning plan planning to plant acres of 100000, we'll see other whether it goes and then we're going to watch this macro environment and make for the disk decisions.
Okay, Great I guess, that's as much as anyone can.
Estimated at this point.
Okay. Once again restocked. Good question. Please press dog, then why I know telephone keypad and might see a name to them.
It's not quite that question and ask the question I would now like to 10, Nicole [laughter] exactly exactly I think my apologies we have one question Kenneth lay it.
<unk>.
Please go ahead.
Hi, This is Michelle on for can keep talk a little bit about higher conversations with customers or prospective customers to change that they have it all over the last month in light of racing and then and in terms like E. Commerce launch did you notice any significant consumer interest relative to commercial I was kind of surprised.
Number of nine G.M. up cooking oil options that were available on Amazon. After I saw I bet, you watch any calmer spot arm I'm just wondering if you could comment on that thank you.
Yeah that they'd be commerce question up front, you know pass it off but dumb.
<unk>, we were excited to launch the commerce, we didn't spend a great deal of money, putting it out there but.
We have a great <unk> a source of pride in rural America about cooking with their own oil and in some of the local restaurants and the the local to traceable University of Minnesota, We had a lot of people wanting to do this and so there's something not just about non Jim oil, but it's something about this this product University.
So to this upper Midwest technology.
Upper Midwest small company, taking into the market with growers, who are right here and beating all that in so we we really wanted them to be able to serve that pride up on their tables, it's pretty interesting for them to look out into the fields of beans, and then sort of the oil on their tables.
In in a minute Minneapolis until certain areas, it's kinda like a virtual farmer's market, where we're bringing local without with the proper social distancing, we're still getting access to local untraceable products. So that's been our experience on E. commerce, and what would it be reporting on data in what we're learning from it.
In the future.
Yeah.
Morning, Sha talking just a little bit about customers. What what has been surprising to me is that they are still very engaged and they're still very interested it's just they call. It is change them in their their what I would call probably their priorities and where there are folks in their efforts, but I've been very surprised that we still stay engaged.
We're still doing testing are still going through approval process. It so that part as it has been very positive.
I appreciate it thank you guys.
<unk>.
Thank you can create a question and answer questions I would I like to 10, Nicole back I. They can give names that clay.
Yeah, I want to say, thanks to everyone for joining us on the call today.
We have really dedicated and hard working team here, a k. looks who push themselves really to do further our mission to every single day and a sincere. Thanks from all of our management to all of you. We we couldn't do it without you.
And lastly, if we were not able to address all your questions on today's call.
Please feel free to contact us or or Investor relations from M.Z. group, who would be happy to answer them.
Before we look forward to providing more updates at our virtual analyst day.
Coming up in the future.
Thank you operator.
Thank you it sounds can claim <unk>. Thank you Yep I take the patient yeah.
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