Q3 2020 Sigma Labs Inc Earnings Call
Good day and welcome to the signal Labs third quarter 2020 financial results conference call and webcast to.
Today's conference is being recorded at this time I would like to turn the conference over to Chris Tyson Executive Vice President of MZ North America. Please go ahead Sir.
Well for taking time to join us for Cigna Labs third quarter 2020 business update and results conference call.
Yesterday, our Mark report, President and Chief Executive Officer, and Frank Orsini, Koski, The company's Chief Financial Officer, a press release detailing these results crossed the wires. This afternoon at four one PM eastern today and is available on the company's website sick Mt Labs, Inc. Dot com before we begin the formal presentation I'd like to remind everyone that state.
With me on the call and webcast, including those regarding future financial results and industry prospects are forward looking and maybe subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the call. Please refer to the company's SEC filings for a list of associated risks and we will also refer you to the company's web.
For more supporting industry information at this.
At this time I would like to turn the call over to signal as President and Chief Executive Officer, Mark report Mark the floor is yours.
Thank you, Chris and good afternoon, everybody and thanks for joining our conference call today.
Q3 was a very successful quarter for Cignal labs, we executed on every part of our plan and continue to get great validation from both end users and Oems for our technology and the need to address the issues of quality consistency and standards within the additive manufacturing.
Additionally, we have expanded our product line and market opportunity, we've strengthened our balance sheet and we got it sales and marketing resources.
We have also entered into a global agreements what I believe will generate independent revenue streams for years to come.
Not for 90 days from 20, some people and.
In spite of code Red, which has impacted our short term revenue we have put the company in a fantastic position for a very successful 2021.
Before I go into details on the above all else Frank worth a koski, our CFO to review our financial results and then I'll provide some color and context around the quarter Frank.
Thank you Mark our D.
Our detailed financial results are contained in our form 10-Q filed with the FCC today and the press release, we issued contains key highlights of our financial results. So.
So for today's call I will provide to summarize for review of our financial results for the third quarter of 2020.
Revenue for the third quarter of 2020 totaled $249000. This compares to revenues of 171000 for the second quarter of 229, <unk> third quarter of 2019.
The increase in revenue was due to increased print right three D units sales, including the first sale of our newly released part right three D Lite unit during the quarter.
Gross profit for the third quarter of 2020 was 150000 as compared to negative 8000 in the third quarter of 2019.
Our total operating expenses for the third quarter of 2020 were 1.4 million EPS compared to total operating expenses of 1.6 million for the same period in 2019.
Decrease in our operating expenses is primarily due to lower R&D costs during the period as well as reduced travel expenses as a result of the COVID-19 related pandemic.
Cash used in operating activities for the three months ended September 30 of 2020 totaled 1.2 million compared to 1.8 million in the third quarter of 2019, a decrease <unk> point sixmillion.
Cash used in operating activities for the nine months ended September Thirtyth 2020 totaled 3.7 million compared to 4.5 million for the same period in 2019, which represents an 18% decrease primarily as a result of a $967000 decrease in our net loss.
Further note that included in the year to date 2020 cash usage is approximately $400000 related to trade accounts payable carried over from 2019 due to a delay in our financing at the beginning of the year.
Our net loss applicable to common shareholders for the third quarter of 2020 was 1.9 billion or 42 cents per share as compared to a net loss of one point Sixmillion for dollar 20 per share in the third quarter of 2019.
Preferred dividends cut contributed to $740000 last two and a quarter.
Now turning to our balance sheet.
As Mark mentioned, we have strained and strengthened in several areas since 2019 year end.
Our cash balance totaled 4.5 million.
At September Thirtyth 2020, as compared to 2.5 million at June Thirtyth, 2020, and $87000 at December 31st 2019.
The increase in cash during the period was a result of warrant exercises from our January 2020, private placement of convertible preferred stock and warrants.
Our working capital was $5.2 million at September Thirtyth, 2020, EPS compared to 2.8 million at June Thirtyth, 2020, and a working capital deficit of $98000 at December 31st 2019.
Our trade accounts payable totaled 182000 at September Thirtyth 2020, as compared to 295000 at June Thirtyth 2020, and 727000 at December 31st 2019, a decrease of 75% from 2019 year end.
Our stockholders' equity totaled 6.1 million at September Thirtyth, 2020, EPS compared to 652000 at December 31st 2019.
And I would note that our January and April offerings together with exercises of preferred warrants have contributed net proceeds of $8.4 million to the company. During the first nine months of 2020.
With that I will now turn the call back over to Mark.
Thanks, Frank obviously, some good progress there all right, let's start with a short review of our value proposition in strategy, then I'll discuss why we're so pleased and excited about our progress in the quarter and are positioning.
We believe as do many others that additive manufacturing will play an increasingly important role globally for decades to come the need to produce customize mission critical parts on demand that are lighter stronger and more durable than manufactured closer to where they're needed will only increase with time.
As we know from our own individual consumer habits. Once we get used to instant gratification ultimate customization unrestricted availability. We never go back just look at the number of Amazon packages, arriving at your House every day.
H.P., just recently conducted a study which.
I have to say it was a little bit more scientific than my Amazon Pelican study and found that 85% of manufacturing respondents planned to increase the three D printing investment.
75% of the response to the three D printing hopes their company be more agile is more vendors.
And as a viable alternative to try to traditional manufacturing so clearly the focus and attention on additive manufacturing continues to accelerate.
In order for a metal threed printing to fulfill what country potential three things must be addressed quality consistency and standards are probably.
Our product print right three D and our recently introduced friend right three D Lite and print right three D D address those issues head on.
Our patented in process quality assurance or RPQ way technology cannot only detect and classified defects of anomalies during the permitting process.
But with the advances that were making with our machine learning initiative, we can't predict when certain defects are likely to occur and.
And as many of you know print right three d. as agnostic to the type of Threed printer and.
And because were agnostic, we're able to ensure a standard level of quality across different printers from different manufacturers.
Many of you heard I've heard me in the past like the analogy to systems or.
Security assistance management software running across the heterogeneous computer and enterprise although.
Although every computer manufacturer had their own security and systems management software the only way to secure the enterprise was with a standards based third party independent software application.
Three d. metal printing, the only way to ensure quality and consistency is with a standards based third party in process quality assurance solution like print like three d. So.
So what progress have we made them why are we so confident and excited about the future.
First as I mentioned earlier, we've expanded our product line and market opportunity with the introduction of print right three D Lite and our initial contract with coherent or laser and print right through your three D. D. Your direct energy deposition.
Our partnership with northwestern University's advanced manufacturing program, but.
Both products increase our market opportunity and will allow us to increase our footprint.
Stand or extend our brand in the broader additive manufacturing market.
Second we have not we announced a boat DMG morry, an additive industries have certified the printers, that's print right three d. ready.
This is a significant milestone for the company and it introduces leverage into our business model. It also dramatically shortens the sales cycle from a sales perspective contracts being brought into an opportunity early buy a trusted partner like the to your other dove during the initial sales process versus.
Trying to sell to the manufacturer after they required the printer and had been convinced by the printer OEM. The quality is not an issue with their system.
Next we announced a contract with a major oil and gas services company and as many of you have speculated after two or you are to either one on a single laser U.S. printer and the other one I do laser so I'm printer.
The customer Baker Hughes purchased their first production system further additive manufacturing facility in Houston. This is.
This is one of several other manufacturing facilities Baker Hughes operates around the world.
And finally, we just announced its teaching alliance with I am for data warehouse to help ensure a consistent level of quality for their factories of the future. This is.
This is particularly exciting to me about I believe it will put the company country on a path towards self-sufficiency, the manufacture critical parts and times.
In times of crisis.
Now I'd like to bring you up to speed on a few other accomplishments.
We installed a print right three d. system at Airbus to begin the qualification process on a G.E. concept laser machine.
We also successfully installed the system Mitsubishi on an EPS to allow them to 83 D. printer.
We did the installation remotely working with their engineers at a significantly lower cost to the company.
The M.G. North America acquired a system to certify their new laser tech do laser machine we have.
We anticipate the certification process to be completed by the end of the year.
We finalized the quad laser and said you process monitoring design and configuration for the metal sub one that's out of the industries to become print right three d. ready.
We also integrated print right treaty with the M.C.P. control, what materialize, which sets us on the path to closed loop control.
And we continue to collaborate with international standards groups, we developed a black body temperature calibration source in partnership with mist using the print right three d. system again, all in the last 90 days.
As you can see we have a lot to be proud of regarding our accomplishments for the quarter.
The question of course, now becomes how and when do these accomplishments translate into recurring revenue streams and profitability for Sigma.
Well I can't pinpoint the timing, but I believe that is inevitable and sooner rather than later.
Each of the partnerships I mentioned provides leveraged to sell multiple systems that are capable of generating significant revenue start.
Starting in 2021.
The M.G. alone has approximately 800 salespeople in the 100000 customers worldwide.
Our strategic alliance with I am for data warehouse is a direct result of the deal DMG certifying their printers as print Ritrievi ready.
In fact, the M.G. North America had a virtual conference last week.
Over 600 attendees listen to her presentation entry.
Introducing their laser took 30 doors, so printer as being pretty right three d. ready.
As a matter of fact, the presenter rose actually filmed in front of one of their printers and our system was adjacent to it.
Additionally, the large multinational manufacturers that are now going into production with our systems.
We are all expanding their additive manufacturing initiatives and each one present, a multi million dollar opportunity for expansion.
We recently submitted a budgetary quote for 10 system purchase, which we will address what with print right three D. enterprise.
No I'm not forecasting that yet however, I believe it's a clear indication of the intent and that we'll see repeated by all are large users and there's one user said I can't imagine a production system without print right three D.
These revenue streams are independent and additive pun intended lay one OEM doing 10 systems a year on top of another doing 15 or 20 on top of a few global end user expanding their additional facilities.
Resellers in Japan, and India doing a few systems each and the numbers for 2021 gets very exciting the difference between a leveraged model versus our two salespeople selling each system by themselves is night and day.
The focus now is clearly on leveraging our position entering 2021 with momentum.
I intend to have everything in place on July January 1st for Sigma to have an outstanding year and reap the benefits of the investments that we've made not only in our technology, but more recently in our sales and marketing initiatives.
There is no other and process quality assurance solution on the market with proven the technology that his position as we are to benefit from and grow with additive manufacturing as it takes its place along traditional manufacturing and reaches full industrialization.
And as noted from H.P. study and other industry studies the pace of adoption is accelerating.
So in conclusion, we're poised ready excited and eager to face the challenges and opportunities in front of US and 20, 2020, and 21 and beyond I think.
I think it's going to be a great year for Sigma.
So with that I'd be glad to answer any questions that you might have.
Thank you at this time, we'll be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue you.
You May press Star two if you would like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys, one moment, please while we poll for questions.
Your first question comes from line of David Levine with Trickle Research. Please proceed with your question.
Hi, Mark Great. It really isn't that was really are all very helpful.
And I think positive can you.
Can you talk a little bit it seems to me that the last couple announcements you've alluded to a lot in the call, but with respect to.
With respect to de incoherent I'm curious if you can give us any sense of.
How much broader.
I'm, sorry are you, reaching down and reaching across I guess has expanded the addressable market.
And lots of curious whether or not.
Those whose entrees were things that you sort of came about as a result of.
Kinda customers.
Customer inquiries or customer discovery or if it's just the places you knew you had.
Yeah. Good question and I appreciate it I'm. So the first one printwear three do you like it was actually my trip in January to Germany, when we visited or laser and it became clear that the economics of them incorporating our technology into their printers.
It was not viable for them and we have other customers ask about what we call Ted only which is no print right three D Lite.
And Oh, we decided that if we could qualify a version of that ramp the market with.
With the organization.
Organizationally coherent working with us.
That said, we would do so so the first one was clearly.
Demand from us from a customer or prospect at that time that we visited.
If you look at the printers that we operate on today with the full version of print right three D.
Those are the higher end metal printers, and so the midmarket or the mid lower market.
Three d. metal printers is about twice the size of the higher end.
Higher end market. So we think it's a tremendous opportunity many more machines, but the cost is much less.
For print right three D D. Your direct energy deposition, a that was actually a requirement that came out from one of our customers and we have the opportunity to work with northwestern University, who acquired a system and agreed to help qualify that with us.
The D E D market is not as big as a powder bed fusion market, but it's a nice addition to our portfolio.
And as you see we expand we're expanding horizontally and vertically.
[noise] vertically into lower end and mid tier printers and horizontally into different processes. So I don't know if we've quantified the total opportunity, but I would say it's at least the size of the opportunity that we have on the high end threed metal printing.
Mm.
I have two more questions, but I'll be quick did you say that the systems are installed for Airbus with the G.
We installed on a on a G.E. concept laser machine.
So that's sort of surprising to me, maybe just because I don't I misunderstood. This all along but I've always sort of thought that.
The relationship with GE, and I don't know relationships, but.
But I thought Gee is being a little bit under cereal to <unk>.
In or maybe just sort of forging its own path not thinking that.
Needed.
Anything you were doing that.
That sort of seems contrary to what I thought so I'm wondering if I thought it wrong or EPS.
You've done it created a milestone there.
No were not working with GE were working with Airbus and Airbus has many different types of three D printers and their supply chain. They can't control the manufacture of the printers. So there are a perfect example of why you need it and agnostic third party quality assurance because when they qualify apart for the EPS.
And come up with its core criteria, they have to be able to meet and certify that criteria regardless of printer. So.
Our installation at Airbus had nothing to do with GE specific it just happened to be on a Gi concept laser machine.
So.
Okay.
Well I'll talk to you later bye.
Mhm.
Any system.
Actually sold in the quarter.
'cause it sounded like I guess I wasn't thinking that we're actually print like sales is that something you can address or there are a couple of rigs.
There are a couple of a regular print right systems and then the print right three D Lite system.
Great. Thank you you're welcome.
As a reminder, if you'd like to ask a question. Please press star one on your telephone keypad.
As a reminder, if you'd like to ask a question. Please press star one on your telephone keypad one moment, please while we poll for questions.
Your next question comes from line of Elliot Levine with private Investor. Please proceed with your question.
Hi, this is only a living.
I Wonder if you can give me an idea.
Of what.
What would you expect your percentage of sales of revenues and 2021 to be so.
Software versus hardware and then what would you expect it to be two or three years from now.
Yeah, Great question and <unk>.
We talked I talked earlier about leverage and so we're getting leverage in the sales model now we get real leverage when we moved to a software only relationship with an OEM. Because then we're able to moves the cost of goods for the hardware to the OEM and we're just base.
Typically selling bits and just stress minimum over the wire. So the gross margin goes up to over 90%. So.
So the answer to your question for 2021 or hardware should be about 50% to 60% of our.
Of our total revenue with 'em software, 40% and I'll ask Franco as housekeeping to qualify. This if I said anything incorrect and then we see the hardware component decreasing and 2022 and beyond and the software component increasing in 2022 and beyond matter of fact, one of the reasons I lie.
Like print right three D. Lite is that it's a lot easier for the Oems to take over the hardware positioning with the light system, but it is with the full system. So you will see us increase the software revenue and decrease the hardware revenue as we get the leverage with the Oems and the distribution model.
So you would see a let's say three years from now.
2023.
Percentage of hardware.
If your total revenue was off for instance, a 20 million.
Your.
You would say that the hardware would be is maybe 20% of the hardware would be 80% is that what you're employing the hardware would be 20% to 30% in the software would be 70, 80%.
Mhm.
I see.
Okay.
I have another question.
Sure go ahead.
Well, what do you what do you estimate your burn rate is it's a it's a prison time.
Well if you looked at the results in Ghana West Frank just to double check me here we're burning.
We bring 1.2 million for the quarter yeah.
Yeah 1.2, that's about a little over $400000 a month now about 415 call. It for operating for operating activities right I would expect that to come down and in the next couple of quarters, just like we brought it down in the last couple of quarters.
So you would expect it to go down because of the increased revenues Oh yeah.
Mhm.
[laughter] increase revenues, it's also mark.
Mark alluded to the Mitsubishi installation and the fact that we did that remotely.
And with Kobe 19, we have begun to do a lot of our installations now remotely and that is that has saved us a churn nothing that we couldn't travel to begin with but but it has forced us to be more efficient and rethink how we do things and so we expect ongoing savings in the future.
By some of the efficiencies that we've now built into our processes.
So that so that means assuming that the burn rate is let's say a million dollars and in the <unk>.
In the Oh October to December quarter.
Your cash at the end of the year would be somewhere around three.
Around $3 million.
Three and three and a half <unk>.
<unk>.
Uh huh.
Getting.
I think we're getting dangerously close to to the point, where we where we need some kind of an offering.
Well you know the there's a lot of things that come into play in trying to answer a question like that and so right. Now we don't have any plans to do an offering short term, we always think it's prudent to be prepared and raise capital to fuel growth but.
At the current time, we don't have any plans, but we will raise capital when we see the need to in order to fuel our growth and to meet our plans.
Okay. Thank you you're welcome.
Your next question comes from line of Ralph wheel with our wheel investment management. Please proceed with your question.
Hello, Mark and Frank Nice report, how does how do you see the aerospace industry unfolding going forward.
And and what is needed for everybody to come.
Come into fold then too.
Ill give you the business that you've been working on <unk>.
Sure. Thanks Ralph.
One of the reasons that we brought in Steve animal for business development, United States was to go after the aerospace because we haven't had a focus on it. So we see it contributing revenue in opportunities for us in the future also I think it was noted in the additive industries press.
Release, a that they have a significant foothold within the aerospace community and we anticipate they will bring us into more aerospace opportunities. So we.
So we see that as an increasing opportunity for us and the second one on Airbus you know Airbus was hit tremendously hard as were most the airplane manufacturers and airlines with Cove, it and that slowed them down considerably they probably lost a half a year on our project and so that was the first reason for.
The slowdown now that were installed we expect them to hopefully certify their first part and begin to go into production early part of next year. So it was a combination of macroeconomic events hurting their industry and then it just took Airbus a little bit of time to react but.
But no that their installed I think they'll be making up time pretty quickly.
Could you comment a little more on and I'm not sure what it is exactly the I O four and a half the project with the smart factory of the future and how how you will fit into that.
I'm sure.
I am for data warehouse is a private company their contract manufacturing or they do both traditional contract manufacturing and now making a major push into additive manufacturing.
They're a D.M.G. customer on the CMC side and no became a D.M.D. customer on the three d. metal printing side, and we were introduced to them during because of that relationship and put together a strategic alliance with them and we'll be ensuring the quality.
The Oh, the components coming out of their additive manufacturing facility.
Facilities as they begin to build them across the country.
They're not sure and we're not sure how many they're going to build but its going to be more than a couple and it'll be to complement their other traditional manufacturing contract the facilities that they have.
Thank you.
You're welcome Ralph appreciate the questions.
Your next question comes from line of Anthony Charles with symmetry. Please proceed with your question.
Hey, Mark Great job guys I'm I was wondering if you could speak a little bit about the closed loop solution.
Where we are and I don't think a lot of people understand exactly the potential of that and I was hoping you could just comment on that a bit sure.
Sure. So when you think about closed loop, you think about the monitoring process instructing the threed printer during the process to make certain corrections and that's important because it saves machine time, it saves material. It's it reduces cycle time during the manufacturing process.
Today is a monitoring system see something we notify through messaging and other things that operators and they choose what they'd like in the future a closed loop will notify the machines operating system and the machine will then let's say change the laser power on a certain laser in order.
Her to correct.
Defect or anomalies that's in process.
So it greatly automates and make it automates the production cycle and reduces the cycle time. The first in store installation are instances of us closing that loop right now is with materialize and because we've integrated with their M.C.P., we're getting close to being able to do.
Demonstrate that bring it to market, it's our plan to do that with all of the Threed.
Threed printer manufacturers that we develop relationships with.
So it it's a it's a major step in the evolution of Threed printing it reduces the cycle time and it makes the process that much more efficient.
Excellent I appreciate that thank you.
Your next question is a follow up from David Roman with Trickle Research. Please proceed with your question.
So mark you were talking about just kind of just sorta hypothetically.
Bits and pieces from.
Displacing that another.
But as it sort of looking at it now and we've discussed this before but I'm, having a hard time envisioning.
Maybe see added shipping.
Right.
Yep 30 machines next year.
Third time understanding the scenario, where they would ship a machine.
Without it.
And I guess, maybe that's kind of an extension of that.
I know, we've talked a little bit in the past about.
In situations, where you had Oems.
Potentially voiding warranty.
Companies.
I do we are approaching a point at some point where <unk>.
The warranty predicated on <unk>.
Well, there's a lot to unpack there, David but oh, when they when they give it a shot.
We believe that the end users will demand from printer manufacturers are that they do not void warranties, if they put a third party product whether it be ours or anybody else's on the printer and Oh I believe that as large end users who have a heterogeneous printer environment.
Who adopt our technology will put the pressure on the printer manufacturers not devoid the warranty and of course, when they printer manufacturers do that they hurt their own customer. So I think that's going to be a self correcting type of situation as far as additive industries and what they ship Uh huh.
In the past of course, they've ship without our monitoring system and one philosophy is you come up with a process and you lock down that process and use that process to produce a certain part of that takes a lot of the agility out of the advantages that additive manufacturing or threed.
Printing brings to the marketplace. So I think that as customers begin to see the ability to manage quality and not have to walk down the process that you'll see more and more printers being shipped with monitoring system like like ours.
And we'll go after both the new sales of her additive and the additive customer base. So we'd love it if they shipped it with you know shipped a copy of our product with every printer.
And if we take out of the side. The vision. We have is to do an embedded non optional software only oh, we m. deal.
And then Bedinan optional software only means that every printer that goes out well have our software.
Incorporate it into their computing infrastructure, and we then get ultimate leverage both in the sales model and then the financial model.
Excellent. Thank you.
Your next question comes from line of Harold Weber with Aegis. Please proceed with your question.
Yes, hi, good afternoon.
I was wondering if you could try and illustrate a little bit some other companies that are out there.
The wing not exactly what we're doing but that value added in these spaces and the type of valuations. They have those people isn't it doesn't make sense to companies were $10 million. It doesn't make any sense people, saying, if it's going to be any good it would be a 10 100 times that.
So I was hoping you could is likely to lighten the sun just give us comparisons of things that have worked a little bit further down the road once developed with them.
Boy I don't have a comparison off top my head I'm for a third party software company, that's attached to the additive manufacturing industries, and then I'd make this separately in the it didnt manufacturing, but there are many companies that are out there creating manufacturing improvements.
Long many lines that were trying to cross.
Yeah, and I apologize I don't have a good analog for you relative to somebody to compare us to all I can tell.
All I can tell you is that we're at the early stages of the three d. metal printers, and the manufacturers and end users looking out across a heterogeneous set of printers and trying to come up with a standard way to be able to manage that infrastructure. There other large company.
He's that are doing end to end digital thread is that tied together the design in the simulation all the way to the quality, but those are big.
Big initiatives within large organizations. So I don't have a good comparison for you.
Okay, well going back to the size of the markets that you're obviously trying to penetrate and increase.
We had discussed this a while back the <unk> going out a year or two we were talking about sales in the space and the I forgot what the number was 5 billion 6 billion 10 billion.
And then the hard way said the software side your true I will like you see a difference.
The idea is to have an embedded within the Oems that's great right. So based on the math that I.
Before you're talking about let's see.
It does not cause a machine for to set up a part.
Our unit is that still in the jet.
General area for a single laser but.
She was talking about a million dollar machine he was saying to sew slip back. It was about 100 grams, that's still about correct.
The cost of print right three D, which is an integrated hardware and software package for a single laser machine is about 100, K about 'em 50, k. of that or half of it is hardware.
So [noise].
The software components 50000 in the hardware components about 50000.
So one customer who would ultimately you want to some local sales to do how many of those pieces of hardware. They didn't need to have 10. Brent is do they have 10 software programs and hardware would one hardware and software programs.
It would depend on how many lasers on each machine, but it would be a one to many relationship. So we would have one hardware server a larger server or print my three d. enterprise that could support 10 printers, depending on the number of lasers at the printers out.
Okay. So with that type of model I'm, assuming you're pursuing I would be 90% of your recurring money would be on the on the.
Fees on the software rights, which is a 90, 890% profit rise or basically correct I don't.
I don't know if you're if your math is exactly right, but your direction is 100% correct, you'll see the movement as we discussed earlier going more towards software and the margins go up dramatically as we dropped the hardware component.
But let me be clear, we'll always have a hardware component for end users, where we go after the retrofit market. So we're looking for a bounce model, where you have a software only to Oems and then a hardware software to end users and retrofit.
Is there a different markets that you're pursuing that would be more weighted to one side versus the other or does it not.
<unk>.
It doesn't matter.
Okay.
Okay.
Thank you for the questions.
Ladies and gentlemen, we have reached the end of the question and answer session and I would like to turn the call back to Mr. Mark report for closing remarks.
Well everybody I appreciate your participation today and your interest in what were doing.
What we tried to accomplish in the conference call tie the things the milestones and achievements to leverage in the revenue that we expect to see in the future and I think we position the company.
To take advantage of the opportunities that are there and I. Appreciate your interest and if you have any follow up questions. Please don't hesitate to follow.
To follow up with me or M Z or with 'em, Stephen Gersten or IR person. So thank you very much I appreciate your time and attention and look forward to speaking with you in 90 days.
This concludes today's conference you may disconnect your lines at this time. Thank you for your participation.
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