Q1 2020 Earnings Call

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And gentlemen, please continue to hold the conference will be getting momentarily. We appreciate your patience.

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As a reminder, this conference call is being recorded.

My pleasure to introduce your host workhorse, Chief operating officer, Dr. Rob Wills. So thank you Dr. <unk> Wilson you may begin.

Thank you operator, and good morning, everyone. We appreciate you taking the time to join us for coal.

The market open we issued a press release with our first quarter results for the period ended March 31st.

For me.

Copy of which isn't the investors relations section of our website.

Well of course is releasing financial results today as well its quarterly filing on form 10-Q.

A few more when somebody during the call over to our CFO, Steve Schrader will walk us through our financial results for the quarter.

After that our C.O. Wayne Hughes will provide an update on our businesses as well as provide an outlook for the remainder of the year.

Before we begin I want to call your attention to our safe Harbor provision for forward looking statements that is posted on our website and as part of our quarterly update.

Safe Harbor provision identifies risks factors that can cause actual results to differ materially.

Forward looking statements.

Our 2019 form 10-K, and other periodic filings on file with the FCC provides further detail about the risk factors related to our business.

With that I would like to turn the call over to our CFO, Steve Schrader Steve.

Thanks, Rob Thank you to all where joining us for today's call.

Good morning, we issued a press release, which discusses the results of our operations for the quarter. Additionally, as Rob just mentioned, we filed our form 10-Q today.

I recommend going through materials to get more color on some information being discussed today.

<unk> financial results for the first quarter ended March 31st 2020.

Many of you would have been following workforce are aware as we indicated in the last earnings call. We shared with you that Kobe Nike virus delay some material component shipments four to six weeks.

That's the way it's moved our first deliveries to the second quarter.

Which is why we have no meaningful revenue in this quarter.

Sales for the first quarter 2020 were recorded at 84000.

Compared with 364000, the first quarter 2019.

Cost of goods sold increased to 1.7 million from 1.4 million in the first quarter 2019.

The increase is primarily driven by increases tooling cost or the C series production.

Selling general administrative expenses decreased to 5.6 million from 2.1 million in the same period last year.

The increase in selling general administrative expenses due primarily to increases in consulting expenses higher employee related cost and the 1 million dollar payment related to Estee engineering Hackney acquisition of certain assets.

Research and development expenses decreased to 1.9 million from 1.4 million in the first quarter 2090.

The increase in research and development expenses was primarily due to why do I see that sign of the C series.

Other income was 865000 compared to zero in the first quarter 2019 due to additional shares received for the I want to see investment related to our anti dilution provisions.

Interest income increased by 14.8 million with 13 million up income in this quarter compared to interest expense of eight 1.8 million from the same period last year.

The significant increase in interest income with due to the mark to market adjustment for warrants issued 200 and the change in fair value of our convertible note.

Based upon a lower stock price at quarter end compared to 2019 year.

Finally, net income was 4.8 million compared to a net loss of 6.3 million in the first quarter 2090.

In the March 31st 2020, we had cash cash equivalents in short term investments of 16.8 million.

Compared to 23.9 million.

We ended December 31st 2019th.

You may have seen last week with called a form S. Three registration statement, commonly referred to as they shop offer.

To give us the ability to raise capital in the future once the registration statement it's effective.

This is a procedural move as our previous as street had expired.

As he mentioned the previous call we continue to pursue with various parties credit revolver, which we believe that's match with our current capital need ramping up our truck production.

But that will review completed I'll now turn the call over to our CEO Dwayne Hughes.

I've got some of our major operational updates <unk> outlook for our business in the current quarter and for the rest of year.

Well done Steve and welcome everyone. We appreciate you joining us on our call. This morning.

Remarks today will be a bit briefer than our prior call given not much time has passed since our year end update a little over a month ago, which is not to say that we haven't been doesn't.

As many of you know because we provide vital support infrastructure.

For the transportation and delivery sectors.

Deemed a central service, allowing us to continue working safely throughout the period.

Hi level and the first quarter, we completed several major road map objectives, which have us well position to execute on our production pipeline as well as improve our long term corporate governance and competitive positioning all of which I plan to elaborate on more fully.

Moving to production as Steve mentioned at the outset, a bit covert 19 pandemic, we experienced a series of supply chain disruptions pushback or expected initial delivery date from Q1, two our current quarter, having said that we are pleased to report that we are still on track for the second quarter timeline.

Yes, sure I'm reiterating our guidance of 300 to 400 delivery trucks produced 20, Twond as long as our supply chain remains intact and we obtained the financing that Steve discussed earlier.

Obviously like every other business, we have a limited visibility on the total industry impacts of the virus as many states are still under stay at home orders and other states are just beginning to allow some businesses to open.

Because of the progress we made today and the comfort we have with respect to our supply chain and production capabilities going forward. We held in partnership with writer several successful right and drive you. That's what key fleet customers as a result, so the success of those events I'm happy to share.

We are now, especially in the final stage of preparing a detailed production plan. When we can deploy vehicles into writers systems sales channel starting in 2020 and into 2021.

We recently released a video on our website and through social media showing initial production at our Union City factory or employees are excited about getting up the production learning curve and ramping up production to meet our targeted units this year as well as increasing that in 2021.

I now want to update you on an area that has suddenly become a very hot topic, and we believe a strong business opportunity for us or horse fly delivery drone business.

In the past year, there's been a growing interest in our ground based delivery vehicles with their integrated horse why drone capabilities as America and the global economy have become increasingly lock reliance on online ordering.

Home delivery.

First a balloon due to the covert 19 virus the individual state stay at home orders and the general feeling that some of these changes may have a permanent impact on the last mile delivery sector.

Well that's me than mine, we began privately working in a coordinated effort well they select group to identify solutions that help emergency medical workers and our health care system at large in late April we partnered with your P.S. and Virginia's center for innovative technology and tests evaluating the here.

Some commercial drugs.

It is important to understand the ability to provide scale of small unmanned aerial systems to support various use cases to assist the U.S. health care system and expediting their response during the covert 19 crisis.

During our testing in Virginia week were 54 missions with our patented truck watch worst fly package delivery system.

Data collected as being used to determine how private sector drone operators can effectively supplement emergency response as certain patient care.

Findings and recommendations will be included in a report to the White House and we look forward to continuing our work based on the feedback from that review process.

We believe our systems low touch standoff delivery capabilities will help save lives. We've made a hundreds autonomous drone deliveries in the national Aerospace systems over the last four years using our proprietary technology combined with our all electric delivery vehicles, we have a comprehensive understanding of the.

Benefits provided by a drone delivery when speed counts in the last several months. We've also seen significant and growing interest and use cases beyond the emergency response, we're hearing from many businesses, but this transaction transition there's not a temporary one and that we need to adapt to it.

New normal what this industry ship in mind. We also believe there is now a more immediate need to protect our assets and related intellectual property in this field.

Some of you May know workforce currently holds a patent for operating parcel delivery aircraft from the top of delivery vehicles. Additionally earlier. This month, we filed a provisional patent application, which further protects the horse fly unmanned aerial system or are you I guess and several other systems key company.

When its and capabilities, including its ground control station.

Wench delivery mechanism and aircraft structure, we feel strongly that all work horse electric delivery vehicles, what their integrated drone capabilities are the most economical Andy Fisher last mile option currently available, making our solutions important today.

Critical and future applications going forward, we plan to build on our early leading position and we'll continue to evaluate beneficial partnerships as well as IP protection strategies to accomplish that goal.

During the quarter. We also made some material improvements to our corporate governance and production oversight for the appointment of to automotive industry veterans to our board of directors, we welcomed Jackie data and Pamela made her to our board.

Jack do you have Pavel I have direct experience and the key areas workforce needs to continue at our transition to full scale production Jackie brings over 30 years of global automotive off highway industrial and aftermarket experience to workforce, having held various leadership positions that that's been group and a whole.

Motorola and Robert Bosch Corporation, as well as two decades aboard membership experience across a variety of automotive transportation and nonprofit organizations, including her current board seat satellite products. She also has a proven background and managing full PML responsibilities.

For major business units and entire companies responsible for up to $2 billion and Rob.

Well a matter has over three decades of automotive industry experience, but I've proven track record in leading fortune 100 manufacturing organizations as well as supporting the development of emerging growth companies for various business Advisory services Pamela spend over 15 years, a general motors any variety of leadership roles.

Including numerous plant manager positions, where she director of operations for manufacturing hundreds of thousands of vehicles annually.

Jackie's and Pamela combined automotive experience at Fortune 100 companies managing major vehicle production efforts will be invaluable to work horse as we look to ramp up our capacity during the second half of this year, we look forward to the new ideas and fresh perspectives that will come from our improved corporate.

Governance structure with their additions our board has now expanded from six to eight including seven independent directors.

Looking ahead, while the rest of the World continues to monitor the latest updates on the global virus, Brett we too are continuing to proactively up on that all health and safety guidelines recommended by the CDC World Health organization and other regulatory authorities.

This point, we feel cautiously optimistic we are moving past the disruption store supply chain again, there's an essential business under the government's guidelines. We will continue to operate as long as we can do so they compliant manner, while taking good care of our People's Health and safety.

I want to personally thank each and every member of our dedicated workforce team as we move forward carefully and deliberately we remain committed to supporting our customers employees and investors and other key stakeholders as best we can during these unusual times.

In conclusion I'll provide a brief comment as we always do with respect to the United States Postal service next generation delivery vehicle program under our India workforce is only able to provide information which is already in the public domain as has been the case throughout this process any further information or.

Analysis will be issued by the postal service. We appreciate the continued interest we received an old provide updates to the market as we are able we do not have any updates to share at this time I.

That concludes my prepared remarks. Thank you all part of your time. This morning, we look forward to updating you on our progress going forward and we're now ready to open the call for your questions. Operator, please provide the appropriate instructions.

Thank you.

At this time will be conducting a question and answer session.

If you would like to ask a question. Please press star one on your telephone keypad.

Confirmation Toma indicate that your line is in the question Q.

You May proceed star followed by the number two if you would like to remove your question from the Q.

Participants do you think speaker equipment, it may be necessary to pick up your handset for pressing the star keys, one moment. Please while we pull for questions. Thank you.

Our first question comes from Greg Lewis with BP I Ji. Please state your question.

Yes, Thank you and good morning, everybody.

Good morning <unk>.

Okay.

I I was hoping you could talk a little bit more about about or supply I mean clearly.

You know this the medical is is maybe accelerating the demand for German delivery systems, but just kind of curious to two real questions around here the first theme.

Is that it's I would think that that is accelerating the pace for residential deliveries and any color you can provide around that and then you know this second part is a little bit more challenging but is there any way to think about how he is increasing and enjoying deliveries.

Good maybe flowed through the CNL you know what we're not getting work horse any credit for that at the moment just kind of curious as we think about 2000 wanting and maybe even maybe the right way to think about it its 2021 really [laughter] how should we be thinking about this in terms of other benefiting the bottom line at workforce.

Well I appreciate the question, Greg and you know I may include Steve here as our CFO in on this answer but from a drone acceleration perspective, you're you are correct, while the Tobin 19 virus in the emergency Medical response is clearly brought more.

Mind <unk> more execution needs to the front of mind awareness if you will.

That is really helpful in driving the commercial business segment of the drone technology as well as you know our technology and the patent that we own it's really based on last mile delivery and a truck launched drone capability and we always viewed that from the beginning as being a differentiator for us to allow us to.

I'll say enter into the market more quickly and perhaps others working on drone technology, that's because of the visual line of sight roles that exist today and our ability to have a vehicle that's within a certain distance of every house in America every single day of the we know what that said.

There are clear visions for going beyond visual line of sight and there are ways through the epay to make that happen, which include our commercial package delivery type customers getting their part 135 certifications as well as an another requirement is that the drone the drones them. So.

Well just have to go through a type certification process, what the Epay do actually execute in a true beyond visual line of sight option. So the testing we did in Virginia allowed us to one demonstrate our wherewithal and our capability to execute on those things and of course, what the.

Audience that was included in Virginia as well as in other testing that we've done any more than 300 flights that we've done over the last couple of years or not but the monster Bowl proof of profit performance. If you will also further separates us and provides us advantages from the comes.

Initial fleet perspective of not just how well we can execute drone deliveries, but how we can penetrate the market even more quickly than others because of the truck launched drone capability as far as well, let me ask before I knew to that question does that is that respond to your drone acceleration question.

Yes.

Perfect. That's perfect. Okay. Good I might ask Steve to jump in here too, but we are of course working on the different business plans on options that we have as we continue to work to monetize the drone delivery from the very beginning of that drone development strategy was.

It was always tied to trucks rush right, we see it is adding value and demonstrating.

Our differentiators in supporting our ability to help us office in the N. sell more trucks and reach scale more quickly back to the acceleration question. Yes, we believe that the commercials businesses interest in now drone technology will further support our sales on the truck side, but individually as drone.

Technology by itself, Steve you want to jump in and Yeah Greg.

We're not going again, obviously 20 and 21 impacts to the drown I think what.

Based on like the Wayne said, but I will say is we feel that we have a very did a very strong business case out there for both.

The drones by themselves and the drone attached to the truck and the ability to sell even more trucks with the drought and for actually commercial and governmental customers. So hopefully in the future we get a lot more involved with it but the actual <unk> if youve seen out there Goldman Sachs is said this is 100 billion.

Dollar market.

Even that they.

Several years study I think of several years ago is actually took place at study that was at a time. They felt was 100 billion dollar markets. That's our even bigger now in and just a small slice of that and then there's not a lot of players out there that.

Have they abilities, we have at all to do it or let alone you know maybe going down a certification route.

Well hopefully that answers your question yeah now that that thank thank you from thank you for the color Yeah. I guess my follow up would be around the delivery guidance you held it on change at three to 400 a units.

Yeah, I guess kind of you know how could you kind of how should we be thinking about low end versus the high end on is that something where you know the pace.

I guess my question is you know given the challenges around cobot 19 in Q2 now that it's continuing to be ongoing is there some sort of ramp up that we stopped need to start to see over the next three to four months in terms of is that really what's going to dictate whether we're at the low.

And Uh huh.

Maybe the way to think about it.

Yeah, Greg I think it's exactly the way to think about it I think we obviously will be making I trucks during the second quarter and delivering trucks in the second quarter.

You know at a smaller scale you know we're just starting we're just kind of ramping up now you can think of a third quarter being higher than that in the fourth quarter being you know the highest quarter of all.

So.

From that standpoint again, it is dependent on how cobot reactions are out there in the supply world well, we have seen so far as we always seems like most of our vendors have weathered. The storm we've had some delays and testing just the testing facilities being open, but you know that hasn't that shouldn't stop any second quarter deliveries.

But I think for the most part.

And also just having the money to do to where we're and we've talked about it and I think I talked about earlier, we are out there looking for our credit revolver, which had we think is that the perfect complement to kind of ramping up the facilities to and we're talking to parties right now and.

We expect to hope we have something in the second quarter and that as well.

Okay perfect. Thank you all for the time.

Thank you great questions Greg.

Our next question comes from Craig Irwin with Roth Capital Partners. Please state your question.

Hi, good morning, Thanks for taking my questions I I hope everybody is well.

And where courts and your families of course.

Thank you Greg.

Can you maybe share a little color with us.

I was impressed that you maintained your guide three to 400 units this year.

Are there any truck companies are saying that customers don't have the right number of people in the office the processes on the customer side or a little bit sticky and moving much slowly.

And in our U.S, not say kind of moderate expectations. This year. No. You guys are very straight forward three to 400 versus your original guidance, you're reiterating obviously, you're hearing something from your customers that gives you confidence can you maybe share with such what you're looking at and you know if there is potentially.

Yeah.

Any factors that could drive much higher or lower.

That does that wouldn't <unk> might be looking at before the end of the here.

Thanks, Craig it's good question I from our standpoint, it's not so much a customer side for one we have the backlog out in the first place with that you P.S. and DHL and the second standpoint, I think we already talked about a working with writer on trying to get a production schedule and the sales channel with them. So.

We are not saying any customer or if anything we're seeing customers are very positive about our trucks and it's more how soon can we get them. You know so that comes back to three to 400 us actually manufacturing and delivering on.

And to your point about and this was Duane you know you started out with the idea of you know many people working from home and so on and as we mentioned in our and our script earlier you know we are we have been deemed an essential business, which has given us some capability to have production level staff working from the office to allow.

I want us to I'll say make lending that eliminates my otherwise I'm, having a bit be at home and so oh, yeah. We have we do have about half of our staff working from <unk>.

Here and Oh.

We again have been looking at the positive side of things are saying how can we pushing forward. So we can reiterate our guidance and we can meet what we're saying we're going to.

That's excellent that's really good to hear.

Changing subjects little bit.

Like many people on the call we were kind of looking at a large town motor Corp as.

Or the potential upside to the company right. It's it's a call option it could be worth a lot of money on on a successful execution over there.

In the quarter you had what eight 900000 benefit on the TNL from a entered dilution provision with some issuing new shares.

It's a good thing because it kinda points to them not raising capital can you maybe share with us anything that you're able to on the on on the on the capital raise over at large town and you know at what point would we expect the a the 1%.

Payment on their debt and equity raised to potentially come to work horse.

Greg This is Steve <unk>, because I don't see they private corporation, we really can't get in to that I think we direct you to actually talk to people at LMC themselves.

From a standpoint, the 1% you know that that is again and any of that whether the capital raise or the sale eventually of the trucks and entering into our cash and we'll see from that is all to us and depending on when they do those things. So again you'd have to ask them those questions again being a private company and we're just.

You know that 10% order.

Understood understood.

The next series a catalyst for you guys are likely to come from not just the initiation of production, but the Oh orders that result from people being able to see vehicles at competitors successfully executing knowing that it's costing them a lot less money on 11 lives basis.

Can you maybe share with us what you're doing or what you have been doing to sort of fab.

Certainly the ground for these orders that are likely to come from others.

Other potential customers out there that might not have made commitments yet.

You know are there several conversations in discussion what level of maturity would you say these conversations has and you know we do expect potential or additional orders from new customers before the end of the here.

Yeah. This is Rob will lessen.

You know, we're starting off with the thought in Q.

Vehicle. That's in production currently we have orders for the thousands 650, which will begin.

The 650 variant later this year it utilizes all the same components and you know as a nice modular solution, we've had a inquiries from.

Several large fleets, where refrigerated versions and we're kicking off that effort now we won't probably see that until.

Later this year, but there's no no single zone goals own refrigerated frozen.

Request for trucks. So it's it's taking a very solid platform and beginning to broaden its appeal to different fleets last mile deliveries.

When you speak to the size of the vehicle you know in that and know what was traditionally called the class five stuff van type World right. These are still a step bands in some ways right with the opportunity to expand beyond the traditional fleets, who use them not just because of the electrification, but because of.

Our ability to size them properly for the duty cycle at hand, so something as small as 200, you all the way up to 1200, you. These vehicles are able to be you size properly, but not just size to accommodate other needs from other types of last mile delivery companies as Rob said, whether it's in that retail space.

Perhaps food delivery and so on <unk>. So one more is you know apparently fleets are using pro masters and and other vehicles with the 200 8300, yes cubic feet and what they're finding is it's not enough.

Space to go out on a and all day trip.

Or they need more space.

The two to accommodate the goods and so our 650 in particular at almost the same weight as a 280 350 cubic foot metal truck because it's all composite is as economical to operate but give us the.

Fleet, operator more cubic feet to deliver.

Good.

Great. Thank you for that.

So one of the questions that does come up many times with investors in the last couple of weeks is your supply chain.

You know people are people are constructive on you guys being able to operate through its pandemic and the.

The issues at that range, but the supply chain. It's also very important for you to be able to.

Actually it on your backlog for this year and then the nice ramp that we're looking out for next year can you maybe talk to us a little bit about the conversations you're having with your suppliers is there anything that's going to impede the C. C. <unk> C. C 1000 actually getting out nice volumes over the next number of months and.

Quarters, and then I'm specifically the post office I know, it's kind of different flavor to the supply chain given that you're talking a very different vehicle, but you know.

What do you feel the ability that supply chain is to flex and allow you to deliver on many thousands of vehicle. So over the next number quarters.

Craig I think on the supply chain I think from a standpoint of our vendors you know I think they help and an initial stages for us that we had a big majority come from the United States you know the first place so even although we didn't have the initial 46 that delay on a couple of components that were.

International by concentrating on the U.S. I think it helped US lot now with the caveat that Dwayne already kind of talked about you can't you can't know exactly what the future will hold exactly with with the virus or even with some of this eight orders and stuff like that I think we feel pretty comfortable with our vendors and where they're at they seem to have weathered the storm.

Regarding the post office again, I think that's something that Dwayne also mentioned that we really can't.

Say anything more than what he he said from a standpoint of the indeed, we've signed with them.

She you can't talk about the capabilities of its supply chain to serve the post office is that off limits.

[noise] I would think it's a it's a similar supply chain that would that supply the current supply the current trucks that would supply a.

A post office vehicle.

Yeah, we insulate I'll say the supply chain by re purpose in components across all those platforms I talked about earlier, so when I mentioned something or as Rob said, he mentioned like a problem aster van being used for delivering something a smaller is that 200 give all the way up to 1200, Kim what we're doing is where I'll say re purposing component.

As best as possible, which is a significant amount of those components across all those platforms, which allows us to protect ourselves from.

Having the have separate supply change across the board for those different platforms. So we're comfortable that's just stays point as long as the supply as long as the suppliers in our supply chain, whether this storm as they seem to be doing quite well. We're comfortable that you know we're doing well, we're making the right moves to allow us to achieve a victory across the.

Board it all the way to profitability for us in the future.

And then just to check one detail.

Our team for the post office is due next Friday now is that correct.

You know again, because we're under not just in D.A. and I think the post office did publicly announce the date of the post Oh the RFP.

I'd go back and check that online, but nothing we're unable to discuss anything about the post office as it relates to any RFP responses. So okay understood. They did say publicly it was that may 15th So I hope that everybody at the post office as well in this doesn't get pushed out did you comment. Thanks again for taking my questions. Congratulations on.

The strong progress.

Hi, Greg Greg stay healthy.

Thank you and just a reminder to ask a question press star one on your touch telephone keypad to remove your question from the Q Press Star followed by the number two.

Our next question comes from Jeff Osborne with Cowen and company. Please state your question.

A couple of questions on my end, if I could Steve I was wondering if you can give us an update on the the discussions if anything's changed over the last month. If my memory is right you are seeking 40 million or so for a a credit revolver just in light of of Corona I wasn't sure if banking banks willingness to land or interest rates realm.

So to the prior calls meaningfully change.

No really does there's no change we are finding a parties that are interested and we're in discussions with them now so.

We'll go forward on that you think that's something that you'll have details out by the next earnings call or I'm, just trying to get a sense of perspective, and how much you need that to then execute on a three to 300 400.

I believe so I think we have enough money right now to get through the second quarter, So, but I I hope to have you know some sorta facility in place Oh by the end of the second quarter.

Got it and speaking of money a there's been some pressure on a publicly traded companies to return the.

PPP funding and looking at the Q. It looks like you still have that is that the case.

Yes, we still haven't.

Got it.

And then in terms of I think the last call as of a month ago or so there was discussion from Dwayne about having the capability of producing two trucks today I didn't know if you could just update us on Union City aid you have the staff to do that I think you said, you're gonna start and <unk>.

Brazil after the supplier delay.

Any sense that you can share as to what april's runway was and sort of the training and effectiveness of the of that stuff a in the early early innings.

Yeah, that's great question, Jeff and I really appreciate you asking and its Dwayne here.

Yeah, our staff were fully staffed with it with the current staff that could still meet that two units per day.

We're pleased about that as part of that was that P.P.P. that you introduced as part of you know, bringing on the PPP. You know we had looked at different things we might have to due to weather. The storm. If you will know PPP allowed us to keep 100% of our employees onboard not have to go through Les Austin and reductions and so on so.

And but from that perspective, we were comfortable that the staff, we had although it will grow and in advance of us increasing our volumes of course for training purposes, and so on we're comfortable that we are properly staffed to do two units a day I'm. The training processes is an ongoing thing, but it's active today, we actually have part.

A number of our suppliers who are involved in our building other vehicles side by side. If you will virtually side by side today with our Union City staff, we put out a video I take a week or two ago, just showing some you know rudimentary elements of the production process happening there.

So so to your to your question, we're comfortable with our current levels are staffing to achieved two units a day, where we're going through their training process and we hope to improve those numbers even more quickly than then we have currently plant.

That's great to hear you're able to keep them with alone that's definitely a good to hear.

The last question I had is that on the last call. There was a lot of discussion of various different tests and forgive me if I'm, making these up but I think the seat belt test you had received in your are waiting on the F. M. B S. S testing. If my memory is right is that something that that's happened in the last month or given corona or the testing authorities closed out.

And that's correct, we actually had everything ready and our testing facility close down.

They they're reopening and getting things back in shape of the the test will be done on the 20 Onest of this month.

Got it <unk> excellent that's all I had.

Well, we appreciate it Jeff stay healthy.

Thank you.

This time. This concludes the company's question and answer session. If your question was not taken you made contact Workforces Investor relations team at double to U.K. H S Act Gateway IR dotcom.

I'd now like to turn the call back over to Mr. Hughes for his closing remarks.

Thank you operator, thank everyone for joining us on our call today, we really appreciate your participation and the opportunity to provide you know our updates and guidance I do I really want to thank our employees partners and other investors, especially through this this time. We appreciate your continued.

An interest in workforce and we look forward to up and updating you on future calls.

Thank you for joining us today for workforce group's first quarter 2020 earnings Conference call you may now disconnect.