Q1 2020 Earnings Call
Welcome to the Blonder tongue fourth quarter 2019 earnings call. At this time, all participants are any listen only mode. A question answer session were filed a formal presentation.
Anyone should require operator system during the conference. Please press star zero on your telephone keypad.
I'll now turn the conference over to your host Fed Grouch 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 a warning and I'd like to take a moment to thank the entire board of directors and our management team for putting their trusted me as my in my new role as President and CEO Since January Onest this year.
Before you bring begin our presentation I'd like to remind all callers that my statements and those made by other blonder tongue Representatives speaking today will contain forward looking statements regarding future events, including the management's view of our prospects financial performance technology technological developments.
And the evolving trends in the marketplace.
As you know the 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 SEC filings, including our 10-Q filings for the first second and third quarters in 2019 as well as for prior years.
Our upcoming 10-K for 2019 and for past years, 2018, and 27 team and our eight case.
With me today or 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 a session.
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.
Contracted within loss of 1.339 million in.
In 2018.
These losses were a direct result of reduced sales volumes in DOCSIS compliant and CMBS products.
As well as declines in a particular line of digital video encoding products and traditional HFC distribution technology.
Those losses were partially compensated for by an increase in sales and our NXG digital video signal processing platform.
And our new CP, he set top box systems initiative.
These results are in no way acceptable to the company its 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 company did having number of specific positive accomplishments and successes during the year.
We are building on for 2020 and that we consider significant towards achieving our short and mid term goals.
But before we get into specific actions taken as a result of our 2019 performance I would like to cover details of the company status and what we've been dealing with regarding the current coded 19 situation.
Blonder tongue falls into in the central business category due to our US 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 as clean and precautionary practices on a constant basis over the last two month as additional information about the virus and its attributes have been better understood and reported.
Additionally in early March we moved 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 Allen Horvath or his foresight on these topics and to all his staff for all the proactive actions that they took while dependent was in its early stages in the U.S.
I would also like to specifically mentioned in say especial, thanks to our manufacturing warehouse in shipping staff to their direct management and to our process and industrial engineers and our service and support teams for their extra ordinary efforts. During this difficult time, keeping our factory running and fulfilling orders.
These are all clearly jobs and physicians 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 in nearby New York and all around the country you've been directly impact by this horrible disease.
As a result of our 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 reorganizations 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 plan for 2020.
During the second half of your last year, we incrementally reduced our opex by approximately $200000 per month.
And we have continued this 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 for 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 Covance related business impact 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 of February.
That small initial impact grew each week through March and ultimately yield an approximate 30% to 35% reduction in revenues last month versus.
Versus our forecast.
We have immediately responded to that impact for 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 the 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 and encouraging discussions with most of our service 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 clinical discussions.
As well as 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, the closing 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.
And associated and 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 in 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 Paycheck protection program.
Or for a request amount just over $1.7 million.
That number being based upon.
Calculated by us, 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 underwriting policies have been fast moving topics.
Both the company and local banks, who are administering the program on behalf of the federal government.
Has been on a steep learning curve since early last week.
We can currently offer no assurances or guaranteed to ourselves.
For 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 the appropriate form filings press releases are both as we learn more.
And I want to emphasize that we will 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.
Including expanded direct sales of our NXG digital signal processing platform to a number of large medium sized service operators.
As well as product qualifications.
Significant progress.
In the sales process with additional tier one interior tier two operators.
We also completed and began to shift at the end of Q4, a world class Clearview 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.
And 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 secured direct business with over 45 different service operators.
Although CP has not yet contributed material profitability to the company.
It has been important in repositioning the company more squarely as a provider of system 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 Cook company customers.
These are great companies. The blonder tongue has in some cases multiple decade relationships with the new continue to be key partners in our potential future growth.
These programs are in progress now with a fundamental goal of 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 31st 2019 was a loss of 3 million, an $842000 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 of 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.
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 were at $637000 and 872.
$2000.
Analog video Headend products were $283000 and $827000 NXG products were $378000 and $186000 and CP products were $1.286 million in zero in the fourth three months or.
2019 in 2018, respectively.
During the fourth quarter of 2019, the company in conjunction with the introduce introduction of its new product lines reevaluated its existing inventory levels. Accordingly, the company wrote off approximately 2.327 million knows of inventory value, which reduced the gross margin to a gross margin loss of.
1 million image at $96000 in the fourth quarter.
For the year ended December 31st 2018, net sales decreased $1.865 million or 8.6% to $19.842 million in 2019 from $21.770 million in 2018.
That was the 12 months ended December 30, Onest 2018 was it lives of $742000 or eight cents loss per share compared to a loss of 1.339 million middle layers or loss of 15 cents per share for the comparable period in 2018.
The decrease in sales is primarily attributed to decrease through sales of DOCSIS data products and digital video head end products offset by an increase in sales of NXG products and CP product.
Sales advanced data products were $2.817 million in air million per $183000 digital video head end products were $6.714 million and $10.308 million and exceed products were $913000 in 186000.
In dollars and CP products were $3 million $977000 zero in a 12 month of 2019 in 2018, respectively.
As the company previously announced it has delayed the filing of its annual report on form 10-K for the year ended December 30, Onest 2019, its annual report.
In your lives in the extensive.
Excuse me on the reliance on the extension provided by the FCC in light of Cobot 19 development.
The company plans to both annual report as soon as profitable.
In the annual report the company expects that the report of its independent registered public accounting burn will include a going concern qualification.
Although the company has actively taken steps to address operating expenses and liquidity and announced today's completion of a financing and a favorable modification to its agreement with the senior lender there can be no assurances those actions and others. The company's tends to take in the future will be sufficient to address.
The concerns related to the going concern opinion.
Regarding the above mentioned damaging kind of birds limited as 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 terminal facility the facility, including an initial aggregate traunch a loan commitment of $800000 of with $600000 was advanced the closing on April eight 2020.
And 200000 hours will be advanced at a later date.
Loan agreement allows for up to $700000 of additional loans under the facility subject to a maximum aggregate amount of 1 million by $100000. Upon the mutual agreement of the parties.
The lenders, who are directors and executive officers of the company or their affiliates are not obligated to provide loans in excess of the $800000 committed and or advantage that closing.
The loan agreement has a three year term.
Interest on loans will accrue at 12% per annum compounded monthly and is payable monthly income earned by the automatic increase of 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 converting the principal balance upping our own held by each of them ample unless otherwise agreed by the company into shares of the company's common stock.
The conversion price will be term determined based upon the volume weighted average trading price of the company's common stock when the NYSE American during the third trading days preceding the date of an agreement.
A different conversion price may apply to amounts loan to the facility while living the date of the 800000 those initial traunch.
The conversion rate is restricted to limit the number of shares issuable upon conversion until the company received stuccoed stockholder approval pursuant to applicable NYSE American rules.
The company expects to obtain stockholder approval that is June 11, 2020 annual meeting of stockholders.
The company also announced that it had that in its wholly owned subsidiary our eighth rig holdings LLC entered into a consent and amendment to the agreement in loan documents. The amendment with Midcap business credit LLC mid cap the company's existing senior secured lender. The amendment the men's the October 20, Fiveth 2019.
Loaded security agreement between the parties and provides for the removal of 400000 Miller availability block subject to its re in position at the rate of $6666.66 per calendar year.
Commencing on June one 2020.
Removal, the blanca subject to certain conditions, including the companys, securing additional equity or debt financing with the ability to seems under this facility described the big meeting the requirements of such removal.
Also we would like to report that the company has deployed three loan for approximately $1.7 million due to the paycheck protection program PPP.
The PPP authorizes the $349 billion and forget we believe this new businesses to pay their employees during the cobot 90 embraces.
The loan or a portion thereof couldn't be forgivable, if the company uses the funds to qualify payroll and occupancy growth in the eight.
Period to exceeding the loan proceeds the remaining balance of being on wouldnt be payable over two years with the first six moves deferred the loan would be unsecured and bear interest at 1%.
There could be no assurances that the company will receive alone nor can there be any assurances that any proceeds of building will be forgivable.
Now I'd like to open the call up to our question and answer session.
Thank you.
As Tom will be conducting a question answer session. If you would like to ask a question. Please press star one on your telephone keypad.
Commission cone will indicate your line is in the question Q.
You May press start to see right to remove your question from the Q for participate using speaker equipment. It may be necessary to pick up your handset before Christmas start keys.
Normally pretty low you pull for questions.
And again as a reminder, if you like to ask your question you May Press Star one on your telephone keypad. This 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.
What I, what a difficult time.
Yes.
Or everyone in tests.
Oh, let's see where do we get number one I hope we can get the.
Hi Tech protect the Texas alone.
Hello.
Given that its forgivable have there been have there been way off.
We've we've we've made a combination of.
Operating expense reductions, including targeted efficiency oriented lay off.
Last year and we continue 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.
Duration.
Since we.
Yes, we recognize the impacts the covert situation we've since taken.
Very specific non efficiency oriented, but but sure 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 that I that I mentioned earlier in my remarks, So yes, we have.
I would put out there with the ability to get the the loan from the paycheck protection.
Program with that cover.
I guess it would cover the layoffs or reductions.
Have occurred last year, but.
So the ones that you may have to implement now.
So again all the actions we took that were specific to the current coded related situation, we took them and they've been communicated to our to our.
Through our employees and our staff and our management as very specific short term actions. The PPP 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 the market. 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 wraps directly around.
What we will be committed to the government and doing if we receive 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 and and work towards the towards the stated goal of trying to get to get the economy covered as quickly as possible that is our plan and all the actions that we've done in the short term related to.
Furloughs and short term lay offs are reversible with very short notice.
So that's good that's good to hear.
Have a and Rick.
The cutback of operating expenses.
Has that have had have you had the cut into the R&D.
May affect the ability to design a rollout you know products.
You know needed products in the market.
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 there than they've been they've been taken with with incredible care ensure that.
At the impact is is exactly what is intended to be which is very short term very targeted and that we can recover rapidly after we see the.
The.
The ramp.
And can better predict what we think the ramp is going to look like on the other side of this.
We'll be able to.
Recover that that that capability as quickly as possible I don't want to go into specific details, but we've done it.
In the smallest way possible in the most careful way possible.
The.
Right.
Oh related Lee.
Do we have the.
Products come mats customer needs now I know there with some discussion of this on the last call.
You know, giving that change the technology trends.
Transition that I assume is still occurring.
Are we still stable and you know in their feedback that to get from customers and potential customers able to meet their needs with the current product line.
On the line vendor 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 our next cheetah extend to some other sort of us affiliated.
I frankly at a rapid lot of them off 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.
Both large and medium sized customer request. So we know there's 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.
[music].
You know I cannot foresee any additional features and functions of NXG that will remain on the roadmap. After Q3 this year at the current time.
So that that that 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 sales progress with customers.
Okay.
But there are those couple of incentives that are sort of checked checks in check boxes.
That qualify us 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 Thats been we've had a great initial success with that a bunch of customers have lined up the current and potential sales.
So so thats all looking good.
Did I answer your question fully yes.
What do you think will be the major driver going forward.
Product lines, though.
I ask because oh.
Like.
We had it sort of a flattening and growth of the set top box of initiative.
Which I presume might have.
Sure on incremental growth over the quarter, but.
So.
I asked what.
What are your banking on.
As far as product lines, though for for growth over the next.
I'd say the remainder of the year.
Right so all the parts.
Banking on.
Versus upside potential so what the company's banking on is that our our newest video and and data transmission equipment in the form of our NXG are clear view product are our beida products are.
Our cmcs products and some other products.
Show good signs of growth to your and those are the things where we're currently banking on in the current internal company forecasts.
And planning.
The.
Other products such as CP.
As 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 from the growth.
Going yeah, as you mentioned going to the.
Yes.
Ill.
As one sentence in your.
A paragraph today.
That let me read.
It's provided a material and it hasn't provide you have provided that materially impact that's expected.
But it is 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'm into the history the company put really simply the history. The company has been providing really high quality high reliability.
Great value oriented us built transmission equipment, and so when you're a systems operator like a.
What like a big like a big tier one or tier two cable 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 to customers and if it if you're delivering data services, you've got you've got to you Gotta look it at.
How that data gets through either your HFC or your fiber optic network away to the customers Homer in the case of wireless operators. They are doing that wireless lean some in some cases.
And if your video.
The video services, you've got devices in the home.
If you're providing 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.
Dick shoes that chosen.
Individual features and functions of that system that we're particularly believe were particularly good at.
Designing and building.
In mostly traditionally in the transmission side and so it's.
Then you know amplification and.
DOCSIS technology and its been.
Including video encoding Mpeg encoding audio and coding.
We pick 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 both the transmit inside the distribution side.
And on selective elements of the in home side, where there's a high value in a high sustainable business.
So that way when and when a customer looks at us and service operator customer looks at us.
They see more of a company has looked at at the total.
Picture and is more aware of the kind of challenges technical challenges and financial and service operating challenges that that customer has so that they tend to treat.
Systems provider with a little bit higher regard and a little bit closer relationship they do individual.
The company's who 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 for the elaborate I assume in that that men some.
Reorientation of marketing sales and marketing as well as manufacturing in house manufacturing.
No as has it changed your focus.
Or your presentation to various cut if it were 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 the the margins that we got on that incremental.
On that income 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 someone.
Untapped resources to apply from a knowledge base perspective.
In that.
In that area incrementally, we only added a few staff.
Oh, Thanks again.
Final question I think final for now.
Right down in inventory could.
Comfortably say what that was what lines that was or though that those were and whether you anticipate anything.
Approaching the significance of this write down in the future.
Oh, so your first but I want to hand part of the softer to Eric but I want to make sure you understand we've done significant efforts.
And.
We recognize this 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 as 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 in the future but to answer your specific question on product lines. Eric do you have some data you yeah.
You can yeah, I would prefer not to be down the actual.
Details of that.
But but I agree it but I agree with everything that Ted said from a perspective basis that we've taken steps necessary to.
Assure that the love at this level will not occur in the future if we're able to succeed Argos.
Right. It was a well was obvious to me or [laughter] seemingly like it.
Going to have to happen at some time ago, the inventory budgets climbing over the life you.
Three four or five quarter.
Oh no great surprised you don't have anything.
You know larger that that again.
As you said get <unk>.
Good thing down to where they you know the turnover is a little greater.
A secret it's a critical metrics going forward it really as.
Well.
Happy.
My.
Feel somewhat handicapped by not having now for two or the 10-K, but so but I assume that will be out before.
You report again, I am five or six week.
Yes.
Okay, along with the perhaps the proxy.
We're not sure the timing of the proxy yet.
But it it'll be the 10-K will be stores in the proxy will be after that.
Well good luck guys.
Good luck.
Thank you currently.
Appreciate the question.
And again if anyone has had any question you May press star wondering telephone keypad.
And it seems there no more further questions at the moment. So do follow handed back Lewis, who tango actually I'm sorry, you have one more question where question from Lake Sim. Please proceed with your question.
Hi, how are you.
Hey voice on the sublease, what do we stand on that.
The the sub the some lease was executed and it started in March and it's a two year deal and so.
So far or tenants has been it's because those.
Okay. Good interest.
What was the total dollar amount it was 7 million.
No no 1.11.
1.1 million.
They are putting some $1 million yes.
It was it a number just over 1.7 million.
Okay.
And.
I guess so the initial tranche on this loan it's on a five day look back so does that assume that were somewhere in that 50 to 60 cents conversion rate I guess.
Yes, yes were whereas the process of compiling the data. So we just got them, we want to make sure that we have the court date.
But I'm talking about the exact pricing but.
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 that both yes.
Yes.
I was just same both both management and board members yes.
Okay, because I'm just looking at AK 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.
Yes.
There are different vehicles that were used to to make the investment.
Okay great.
<unk>.
So total amount here, 12% per annum.
Have you thought about doing your shareholders rights offering.
No we haven't.
Okay.
We have we had to raise the money fairly quickly a rights offering is a very expensive endeavor.
It requires mailing shareholders printing of legal documents and probably have to do an S. One to that quarter million dollars.
That wasn't in that's not in the cards right now.
So you're going to be mailing out the proxy annual report anyway 60 contained as part of that right now, but and that's an S. One filing is a different story, that's there's all kinds of reps and warranties and legal work to go to Matt, It's a minimum cost of quarter million dollars to finalize one.
Thats, what you'd have to different rights offering.
In terms of allowing your shareholders to participate I guess in the.
Getting to the dilution any suggestions there or anything that you'd be looking.
Well accredited investors, we have a investment banking from that.
It is handling this force and if there's a credit investor to that.
This is meets the criteria of a rough participating in a rig the offering that investment banker can contact that.
That individual where that institution.
Okay, maybe you can a supply that information I can but I don't want to do it on this call.
Understood understood.
You can call in Korea afterwards, if if if you know criteria.
I appreciate it.
Great I appreciate it does come up with everything going on and look forward to seeing next quarter hopefully it whether through the storm here.
Thank you.
Thanks very much like.
Okay.
And just like we have reached the end of the question and answer session and I will now turn 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 in 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 in 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. Your lines at this time. Thank you for your participation.
Thanks very much.