Q3 2020 Ideanomics Inc Earnings Call
[music].
Greetings and welcome to the idea Nomics third quarter 2020 earnings call at.
At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation.
No one should require operator assistance during the conference. Please press star zero on your telephone keypad. Please note that this conference is being recorded.
I'll now turn the conference over to our host Tony Sklar, Vice President of Communications and head of Investor Relations. Thank you you may begin.
Good afternoon, and good evening everybody. Thank you so much operator and welcome to the Audionomics third quarter 2020 earnings Conference call. Joining me on the call today I'm pleased to have Mr. Ultra poor Chief Executive Officer, and Mr. Kantor Mccarthy, our Chief Financial Officer.
A webcast of today's call will be archived been available in the events and presentations section of our corporate website for a minimum of 30 days as a reminder, this conference is being recorded.
During the call we will make forward looking statements such as dialog regarding our revenue expectations or forecast for the quarter's and full fiscal year 2020, and 2021 related to our business. These statements are based on our current expectations and information available as of today and are subject to a variety of risk.
And I'm, certainly cheese and assumptions actual results may differ materially as a result of various risk factors that are described in our periodic filings with the FCC as a result, we caution you against placing undue reliance on these forward looking statements within del obligation to update any forward looking statements as results new information or future events.
Except as required by law. In addition, other risks summer sports or more fully described in our idea not next public clouds with U.S. Securities Exchange Commission, which can be reviewed at www Dot FCC Dot Gov. Today November <unk> 2020, the company filed its 10-Q with the FCC and afterwards issued a press release.
Announcing its financial results. So participants on this call who may not have already done so may wish to look at those documents as we provide summary of those results on this call. The format of today's call will be as follows Mr out for our C O listen to the company's overview on the business strategy as well as the activities and developments for the third quarter and the <unk> and <unk>.
Fiscal 2020.
Kinda Mccarthy, our CFO will speak to the company's operating and financial results for the third quarter and then all of our investors communities favorites that shouldn't be she went to eight time.
I will now hand, the conversation over to Mr. Albert for our CEO.
Thank you Tony and thank you to everyone joining our call today.
I'm going to begin by talking about our results in Q3 and follow that with some remarks about our Q4 and our business as we head into 2021.
In Q3, we sold a quarter over quarter growth, we had referred to in our last earnings call.
Unit deliveries was significantly up which resulted in revenues, increasing a little under two and a half times, but since the second quarter.
Our taxi ride share business unit continued to be the driver of this growth as the consumer led economy, China came back strong in the second half of the year.
We've been working hard as I mentioned that I recently G M get the financing solutions in place one look our pipeline to big ticket holders such as trucks and buses and we've made some significant progress there already in Q4, which I will discuss in more detail shortly.
In terms of the broader read the industry. The industry has seen a significant uptick in easy passenger counts now and then.
He's driving interest and inquiries from commercial fleet operators outside of China, which was previously the only meaningful market active globally.
We expect those inquiries to translate into demand that I'm trying to commercial vehicle markets as we move into 2021.
What about priorities as we close out 2021 block the OTA pipeline, we have a larger ticket items.
As discussed previously the key to executing on these householders these innovative financing program.
Hey, what's the dynamic taking place in the China market, Oh bison financing the finished product the vehicle and battery together and.
The world's financing the vehicle and battery separately.
In order to achieve this we have to restructure relationships about battery partners I, most partners, bringing the capital into our funds.
There are two funds in progress at this time, one of which is likely to be finalized with the November and the second shortly thereafter.
The funds will focus on vehicle leasing as well as badly as a surface subject you've heard me speak about several times recently.
Once online these funds will enable us to comfortably placed the oldest with manufacturers.
Every bit as keen to see these orders moving as our customers shareholders and of course, the management and stuff I'd tell me, we're working hard on these deals every day.
In terms of Q4, we're already seeing strong growth in deals sourced by our sales team, sometimes though in Qingdao many of whom are recent hires.
Pleased to tell you that we have been successful in attracting south column with experience in commercial fleet sales and our pipeline is already beginning to show the benefits of expanding ourselves operations in China.
We've worked incredibly hard to put the systems and processes in place to stainless sounds operation and this is bearing fruit already.
Many of you are anxious to see our bus and truck sales come on line and I'm pleased to announce that we have begun to execute one of our oldest which involves the conversion the beagle buses and we've concluded that deal in Q4 to supply the batteries and harness equipment utilizing C. I T cell battery support by our energy Division.
The initial order is for 13 buses that's part of a larger rolling order for fleet conversion that will continue through Q4 and into 2021 at.
That's the bus operator has to take the bus is out of service.
Don't do this work that's why you'll see the numbers like similar to what this initial order thats seen will be will be 10, 15 or 20 at a time or we have another order were expecting in December the similar number and for those customers are converting rather than replacing goals.
The batteries and honest equipped our expenses.
But it's cheaper than replacing the newer boxes in the bus off right is rolling stock.
Were excited to have this revenue activity in the bus segment of that business.
A tree electric business unit this company, placing orders what its manufacturing partners for the first tranche of 1000 plus units and this will enable them to begin fulfilling south and major markets, where we have strong order flow, including Thailand and Indonesia.
Tobey 19 hit Malaysia harvest, Mike local operations for the ports and I'll open with robust measures to counter the thrown a virus and we expect big things from that business unit in 2021.
As I mentioned at the right Yeah, we have a CFO joining between electric team in a few weeks time and he brings which experienced some big order that will help us with everything from supply chain due to the development of our land in the Port area. That's.
As you will recall, we acquired title to the land earlier this year and this is a strategic part of our plans for electric and its ability to reach scale to meet demand throughout the region.
As we detailed in our recent shareholder meeting we are progressing what I'm a teacher motor was business and expect to have the first be truck sales. Another vehicle types ready to start the allocation process necessary for South America.
We're encouraged by the fact, we are already getting inbound leads from commercial fleet operators, both in North America and other non China markets. So we feel we are where we need to be in terms of timing for the introduction of MDG brand.
Conversations are taking place in areas ranging from supply chain through the south distribution partners and we'll keep you informed of major developments as they occur.
I'd like to point out because it's not obvious that I'll make business unit will support the teaching to electric in terms of financing batteries to service the charging senses as an expansion of its China based activities Weve.
We believe makes sense to have to see mobile will translate well to our global markets. So make will be available not only to support I'm a teacher electric brand status <unk> outside of China, but also to support the needs of commercial fleet operators with a quarter range vehicle types and manufacturers.
That leads nicely into my next topic Ah on October 22nd we announced that we invested in California based maybe track the company collects right.
Investment got us a little under 15% of the company.
As a reminder, select truck builds and sells 100% battery powered electric tractors as a clean alternative to diesel tractors and supply. These the farms vineyards and other types of plant operations.
The investment allows us to participate in the global agricultural tractor market, which is valued at 75 billion, but no the market in North America alone expected to reach 20 billion by 2023.
This was a great investment at the right time, because we believe the specialty vehicle market will be one of the fastest growing sectors income, Texas in commercial TV.
Jim This is due to the fact that tractors and other specialty vehicles typically don't have concerns around ranging inside the vehicle light and charging network infrastructure for the long haul the acoustic.
Our strategic investment in select tracked is aligned with our M&A strategy, which must fulfill the following criteria must be synergistic because that's something proprietarily have a proven bottle products another existing sites.
Electronic is a great fit for our specialty vehicle and heavy truck division with teach him how to work.
The company currently boasts spoke awarded and pending patents three electric tried to models with another and design stage as well as thousand active order books. So we're very excited to have three perhaps electric in the family.
In terms of general operations, calling Mccarthy will cover that in this segment, but I'd like to say that as we add staff to bolster its kind of activities color and his team are taking a disciplined approach to our expenses, we continue to help us streamline their operational costs.
This includes divesting of noncore assets, such as the Fintech village property, which is beginning to receive qualified interest.
In conclusion I'd like to say that we are pleased with our progress and our achievements are only possible through the support of what is truly a global IDEXX family of strategic partners employees and shareholders.
This has been a pivotal year, but commercially visa gain mainstream attention and.
We anticipate the segment will begin to show the type of growth we have seen any passenger cars.
The future looks bright for TV industry, and I'm confident the ideal mix is well positioned to take advantage of that global trend towards zero emission vehicles.
This will allow us to generate sustainable revenue growth and shareholder value.
Thank you very much now I'll hand over to our CFO condom copy to review our financial performance in Q3.
Thank you guys.
The third quarter was one of the strengths.
I've had in terms of financial performance.
Hello.
Continued strong revenue growth.
Production of 1.6 million.
Got it and then operating expenses.
<unk> expenses.
We ended the quarter with $27.6 billion in cash you, an active M&A and investments to support our organic growth initiatives.
I would now like to discuss the financial performance in detail.
Revenue for the third quarter was $10.6 million for all of which was generated by day.
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Third quarter revenues at the largest since the company commenced <unk> activity and our 2.3 times, especially in the quarter to 2020.
And 3.4 times, the third quarter of 2019.
We delivered 626 units in the third quarter. This Nike said that its good fortune.
Thank you Tony.
<unk> expenses, though demonstrates the investment made in our China based sales team infrastructure needed to support that is generating a very high return on investment.
You pass it as to the plans that we have.
G.
Dr. junior levels.
Cost of sales.
The net sales I think continues to expand with the objective of the relationship.
With differentiated cells things better.
In order to create long term value.
The second this was recorded.
$44 million of deferred that you had this quarter, which would be recognized.
As the services are delivered.
Revenues for the third quarter of 2019, the $3.1 million.
<unk> million, Okay, let me say that.
Gross profit for the third quarter was.
$7 million, which was essentially a gross margin of 6.7%.
Gross profit in the prior quarter was 2.9 bidding for the margin.
The native vision tactically agency capacity for <unk> sales in the third.
Third quarter, 2019, and older U.S. GAAP <unk>.
The next.
Thanks.
Which resulted in a de Minimis culture that is expense.
Thank you very much.
As I pointed out in prior calls that are about to suppose path.
The cash generation identical badness as to whether the revenues are important.
Thanks.
Third quarter operating expenses $12.7 million compared to 12.3 million in the same 2019.
Third quarter includes a 1.3 million expenses early stage, all deep relationships designs for the DG granted.
Hi, Ashley and hydrogen powered trucks.
I should say the third quarter were $4 million, which reflects the costs associated with an enhanced investor relations for raise the full benefits.
The investment community with the objective of aging.
Lazy assets.
Responding to the class action lawsuits and that usually are.
As well as generally I hope, it's actually the fundraising and the day.
As previously announced didn't take village is considered to be non core assets and we commenced an actor Matt.
So the size of the point would be how do your customers should we just stick with that.
The marketing effort.
The assets of the juice and promising indications of interest which management into the process of evaluating.
As a consequence of the decision to sell the site rather than.
We won't know capitalized architects fees and one of the main buildings.
You know just this impairment charge was $3.3 billion, which was all non cash.
We recorded a gain of $4.2 billion, reflecting good measurement.
As contained in the technology acquisition.
We remain highly confident about the long term potential to technologies.
Ladies and delivering on the business plan at the jet you should use the earn out payments due to the selling.
The loss from operations was $12 million as compared to 9.4 in the prior period.
Least operating losses almost entirely due to the Liberals.
Turning to the interest and other income and expenses section of the income statement.
Interest expense for the period was $2 million, which was non cash and represents expense when U.S. GAAP accounting guidance is applied to the watch the vision and the company's remaining debt.
We recorded a non cash gain of 5.3 billion to other in relation to the successful negotiations to terminate the lease of the companies are often.
City.
Our new EPS reflect the workplace dynamic imagery, which we anticipate will continue.
See the future, which come at a very significant cost savings.
Now I'd like to turn to the balance sheet.
We ended the quarter with $27.6 million in cash.
We did $10.5 million is lower by 12.8 million as compared to December 31, 2017 balance sheet.
During the day.
The change reflects the finalize purchase price calculation treats.
She technology technologies acquisition.
In the liability section of the balance sheet.
And contingent consideration of 4.1 billion is lower by 8.3 million as compared to the year end balance.
4 million.
Since these affecting the payment of the consideration deep off by way of issues haven't stopped.
In conclusion, the third quarter was full of milestones achieved.
Hi, its revenues from makes his business commenced operations.
Sensients makes products and services to provide additional revenue streams more value to customers and strengthen our long term relationships.
Continued operating cost is considerable 6 million annually.
Active M&A pipeline of opportunities that meet before investment criteria said Oh, yes. It is.
That concludes my remarks, and I will hand, it back to yeah.
Thank you so much card. This concludes managements prepared remarks, now I'm Super excited for us to be able to access some of our investor and analyst questions. So operator, if you could give everybody instructions on where they submit well.
So we'll get to it.
Thank you Sir.
And at this time, we will conduct our question and answer session.
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Thank you and our first question comes from Damon.
Filton. Please go ahead.
Yes can you hear me.
Yes, we can anytime and how are you.
I'm doing what are you.
Good thing after so I just had one question really from where do you see the company company in America.
Okay.
I would obviously anticipate us being a significant company in the next five to 10 years.
We'll be getting there in a meaningful way much sooner than that in my opinion.
We're starting to see the commercial activity for easy pick up in the same way that the passenger car that I think a lot of people see the passenger cars and say why isn't I do not mix moving that fast. So we're not in the consumer space and if you look at most of the impact in the commercial space.
Just like an old as of this time, where we're actually starting to.
Execute on that pipeline as you saw so I think in 2021, we're going to start to see the energy revenues come online from that side of the business as we get more 'cause commercial fleet customers now out to market and even and I think you're going to see the company.
Benefit from the last couple of years.
The infrastructure, we put in place.
Hi, Kannan mentioned that so did I talking about the sales infrastructure and other things, where we're preparing the business to scale at this point in time. So you.
You know, we're anticipating growth to come behind that and one of the reasons. We you know we raise the cash and the early summer was to support the additional staff willing to bring on board in the short term and to look at some other strategic opportunities as the as the market unfolds, it's a new market ebay.
So you know we do get changes that you've seen that the dynamic I've spoken about with the.
The financing for the bigger ticket holders, but.
But we're obviously taken steps in every angle that we can.
To make sure that we're out ahead of the market in that regard and you're going to start to see as the commercial market comes online more meaningfully companies like idea nomics very much in the offended.
Alright, Thank you very much.
Thank you.
Thank you. Our next question comes from Susan Mauro. Please state your question.
Hey off a great quarter as far as earnings per share I'm really.
Glad to see it moving in that direction. My concern is you've been awfully quiet management has.
Not been doing its usual communication with investors and I noticed there was an FCC investigation that you've noted on the Q wondering if you can provide some light on that and when we can start hearing.
Your wonderful voice and a P ours more often.
Yes. Thank you very much for joining us and thank you for that question. Yeah. Obviously, you know when you have China based operations and on your you know you have events happened negative events happen like a short selling attack you catch the fccs attention.
We've had a good relationship with the FCC, obviously, we can do.
Discuss ongoing matters, well, but as much as I can say at this point is you know we have reached out to the EPS and see the ask or what else. We can be doing to help include a their inquiries and then you know where we're a public company. So very much a you know their entitlement to ask the questions happy to.
Thanks off interestingly, you've got other companies that are in a very similar position.
Financially as far as the negative earnings and not quite yet profitable. Yeah. These companies are going gang busters as far as their stock price. What do you say to investors who were holding on were barely at a dollar and he's got a company like work horse and and others not you know not that they do there.
Exact same thing, but there they seem to be doing a really good job, reaching other investors inc. and really new investors and to hang with Solomon and we're not doing that went what can you tell us about what yeah.
Okay perception is reality, so I would say that you know you often get the stock price that you deserve I'm certainly that's the case in the short term.
What I would say few is some you know folks looking at a lot of these companies in the space everything perfect understanding of the automotive industry.
You know you've just seen some moves made by Volvo by Ford and others, who have you know market caps of the.
So often a fraction of some of the astronomical valuations in share prices that are out there at this time, although the consolidation there will be a market correction again some of those I think people are looking up a consumer base.
Cool sector, particularly tessler, neo and saying Wow everything on the E V related must be on fire I don't think it was quite the when the commercial sector and as I said a lot of people are not looking at what we consider to be the crown jewels here and that is the energy consumption remember even in automotive is great.
But manufacturers go through cycles of boom and bust over over decades, right Exxon Mobil shell BP. These people down okay, and it's going to be the transition and the energy man and the demands of the people that play in that space and I think you're going to be the real winners that's something autonomic understands it some competitive understands very well that's why it has a close network.
Fritz charging and it's beginning to pick up metering licensees in Germany, Australia and places, but most of the market doesn't get on the pure pie asset heavy automotive company wont be able to participate in so that's why we think with different we've done this within a public company by transforming the business not having a blank canvas doesn't give you.
Yes kind of the same a clear runway is a lot of these companies have had but we're very proud of what we're doing with making that mistakes at scale in China right now so when we come to copy paste our operations globally I think people understand what we've been trying to put together the infrastructure we have in place and we expect to begin with we expect to starting to send them, saying.
Expect those astronomical valuations to start to come down as well. So I think you'll see 11 normalization in the market in 2021.
Thanks.
Our next question comes from Chris.
They do witty please state your question.
Yeah, Hey, Tony.
Hi, guys, probably a good good to speak to you I've got two questions. Following on Susan's questions. Just about general business update is there any more color you can add to the spin off so that each year the tree and any updates there I'm just looking for any any kind of guidance.
You can give us as far as what your plans are.
Yeah, I mean, obviously, we can't speak about the events before they unfold.
I want to jump the gun on anything, but but needless to say anybody with any assets in the space is being approached for some interesting conversations at this time, so I will.
We'll let you know more when we were able to.
But but obviously it would.
[music].
You know I can't come out and declare anything before we're ready to disclose it because we're a public company.
But there are some interesting conversations out there not just for us but for anybody with the B assets at this time.
Okay understood.
Well thank you.
Thanks.
Our next question comes from Chris Arnie with UBS. Please go ahead with your question.
Good afternoon can you provide additional clarification on the us to have to see model in the U.S., but.
Specifically to the financing in trucking pieces in the U.S. needs to be a separate standalone operation to be successful.
We don't believe they do Conor and the anti glam who heads up our economics capital group.
Having a lot of interesting conversations with the financing partners over here.
We're beginning to help them understand how the models being working China, what the challenges have been as the market stuff.
Developed, particularly as it pertains to battery technology, getting faster more durable and cheaper year over year.
So those guys have been having the conversations they need to learn to make sure. We have the financing partners in place as we bring them a DG and select track that's important electric as well.
We believe the EPS swept the model is a strong one.
We believe it will.
Translate directly into other markets and and as I mentioned in my remarks, a few months ago.
Gee will will be here to support.
But the cheapest teaches a product company and.
He is a service company, so there's always going to need to be a service there, but I mean, she wont only support mcgeachy select track to electric Petra.
The need to commercial fleet operators are not going to be able to be serviced by by one particular company that you go out and you make roughly.
Operators, who you talk to their management teams you understand they get to a range of vehicles in from a variety of manufacturers.
That's why Mac I think continued to be interesting not only can they finance I won't vehicles, but it can finance the other vehicles to other manufacturing partners to complete that fleet operators need and I think you know obviously the Holy Grail. There. We're trying to do is give them that sales and financing support surfaces in order that we can we can.
Take care of their friends, you demanding to help sell them electricity product so.
So I think that's why we work with the strong on Mike. Let me think make ultimately will likely be our largest revenue producer given that it will be selling the energy demand as well so where we're at.
Starting those conversations now and in other markets to make sure that we are ready to move with Macrilen teaching hospitals come online.
I think.
I think some follow up to that would be the fleet operator adoption of swept to see can you maybe give us some type of metric or expectation of what that would look like in terms of quarter over quarter growth going forward like how many who have been engaged so far and what can we expect it.
In the coming months.
What I what I can tell you at this point I can't give you any any of those types of numbers at this time, but what I can tell you at this time is that.
The the fleet operator.
Is having the same type of discussions with us is they're having in the U.S. as the happy with us in China and other markets.
Which is they need us.
Service providers to assist them to understand the the manufacturer landscape I understand the financing landscape I understand that the rebates and the tax incentive landscape.
Those areas continue to be very interesting and obviously, if they can benefit from our group purchasing of electricity to supply to them cheaper than they can probably get there right.
And that's obviously something thats very interesting to them.
The ROI is one of the biggest hopes the fleet operators communicate to us not only reduced energy cost putting reduce them.
Time off the boat through vehicle maintenance, which obviously internal combustion engines.
Quite a superior is Cvs in terms of Oh, you know motors and mechanics. So we're anticipating BV trucks, so be both on the road more and longer lasting and the the rice counterparts work. So the conversations very very similar it's going to be all about service level cost and what they can get for like cost of the.
I realize that they achieve and that's why we believe makes going to translate over as well.
And then one follow up if I may can you just confirm whether the Beijing central and all the bus deal still active.
Central from over is the financing company, we do still have an active relationship with them. They are one of the companies that has been working with us to discuss how to deal with this dynamic in China, which is the least financing companies don't want to underwrite. The finished product at this time, because the batteries are getting cheaper and pick a year over year.
So that's what I've been talking about now and that this dynamic in China that we expect at least in the short term to translate to the other international markets.
Which is the battery will be will be sold as a service until.
You know the consumer or the fleet operator can purchase knowing that you know he's got something that isn't going to change in terms of value all along.
You know, Joe ability and range and things like that six months. After we purchased it. So so that's really the big dynamic that's taking place in China, we expect that to be the same year over year, the PTX getting much better for not only the battery, but for the charging them the energy management well until that stabilizes I think you're going to see a dynamic where the battery is going to be more.
At least as a service for three or four year period than.
Just as part of the finished product.
Thank you.
You're welcome. Thank thank you. Our next question comes from David Joseph Please go ahead.
Good day, Thank you Mr. poor I congratulations I thought the quarter was very good you guys are going in the right direction.
With the growth of the company. My question is related to the United States change of the political situation. That's changing it appears that the new government.
Just to be in place will be in place apparently he's very proactive in the electric vehicle space and that they're gonna be pushing out and incentives and tax breaks for corporations and Oh, what do you. How do you see the DG motor works or not in that life is all sold truck.
And the American market going forward and are you expecting that to start to transpire in 2021 and number two you mentioned in the last quarter or merger and acquisitions were also on the entre do the to do list could you comment on that as well please.
[noise], yeah, something like that thanks, so much David interesting questions and I'm very happy to answer them.
The first part is we don't really know what the next administration would do you have to try and plan around and the administration as it comes in certainly the the noises coming out of.
The Democratic.
Parties, but if they were in government they wouldn't be taking certain measures. They do tend to be probably v. and one could also argue there will be more pro China, which has been a difficult dynamic but the current administration for for a company with operations in China. As we have the answer is I would generally say based on.
Holding those politicians true to their word and I don't know if that's anything you want you're never really really do both without wanting to get into political discussion, but but you know typically I think we'd expect them to at least partially take care of the promises. They made during the you know that bid for election.
The one thing I would say that's a dynamic now that we can understand this the economies at the state level and not in good shape might cope it's been pretty hard you know the things like the industry looks a Tesla Neo and says you know what's going on through the rest of everybody else well you look outside the tech sector in one or two others and.
You can say the same thing like what's going on with the rest of the economy and I just I don't know from the conversations that we're having.
A lot of these states are going to be able to afford extending their programs. In 2021, we certainly hope they will be able to we don't anticipate that hitting us terribly if they don't.
But but that would be the one thing that I would be concerned about is well this well at state level will they be able to afford the after tax incentives and rebates that happened last year.
Very good and merger and acquisition activity I recall that when you had the $35 million in the last quarter that you guys were potentially looking at.
At merger and acquisition pipeline I didn't hear anything about that in this quarter is that still on the to do list yeah.
Yeah. There's obviously, we think there's some amazing opportunities out there.
Just mentioned there that you know there could be some states I'm able to continue with the rich subsidies have been giving in 2021, because their economies are not great. They need any more tax dollars to support them.
In the same in the same way, there's some companies out there with some amazing technology that Oh Oh.
Relatively well priced right now and a good strategic fit for growing companies like fighting on it. So we're very active we've added to the corporate development team recently because of a pick up in activity. We continue to have our own conversations as well for you as well as be approached by advisors looking too are looking to get our interest in it.
Companies in their portfolio companies of the contracted to so it's an area that I would expect to see additional activity from us in future.
Very good and causing congratulations 230% increase over the quarter I think is excellent and you guys are going into right direction.
Yes, absolutely. Thank you very much much appreciated.
Thank you and just a reminder to ask a question press star one.
Our next question comes from our <unk>. Please state your question.
Hi offered a this is art again, thank you for taking my taking my call can you hear me fine.
Yeah, Hi off how are you.
I'm doing good Alfred I wanted to touch back on this because I haven't heard anything I had emailed to you on the insider buying you know 12 months ago. You guys said you were working on it I have a second email on a you know six months ago, you guys are still working on insider buying.
I believe you guys do this in the open market confidence would go through the roof to shareholders and institutions because it shows then hey look these guys they're buying because they believe they're going into right direction can you maybe elaborate on this a little more.
Yeah, I mean, what are they obviously based on my expenses.
Well be very pleased to speak about the south actually there's a.
Form for being filed for me today that show some some buying I was able to do.
I purchased a number of my share options for the recently divested.
Really but in terms of like yeah, but in terms of market by C.I. I believe that was filed after market Tony would be able to confirm that but some yes exactly yes.
Yes, Yeah, we've got the perfect. Thank you, but in general terms I would say that we're working with a large institution right now to move our our share plan over from existing incumbent vendor over to them part of that is they offer an extensive.
Service around Tenbfive plans those are ones, where you know individual such as myself and the company wouldn't be subject to what we are at the moment, which is I'm in constant receipt of material nonpublic information going to David Joseph point on the previous question, we're having a lot of conversations around M&A strategic partnerships.
Those types of things there is no window that I can I can buy or sell now I can buy my options because they're already disclosed to the market. So that's what I did today any color on the team are in the throes of getting the Finalization for the Tenbfive plan as well as the share management plan put in place with a with a much larger vendors on the income that would be lucky, but once that's up and running there.
That will be an opportunity for us to announce ahead of the market that buys and sells so we can say, okay outflows gonna buy some shares every month first Monday as a month or something like that and then that's the only other why you can get away with doing it in a in a compliant manner. When you were in constant to see the material non public information. So it's taken us.
A lot longer to do that there's been data export and import files and all sorts of things we've had to deal with that have to work with third parties on but I won't bore you with the details, but a color on the team have worked hard and when they have a they have a weekly integration costs with the new the new plan provider, it's going to be getting a phone line fairly soon.
Can I don't know if you can speak to when you're hoping that will be life, but I know, where we're close to finalizing.
And Oh, he does lie in the second.
The December and as the company.
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And second part of December and as of now.
I'm sorry.
[noise] quite okay.
Okay. Yeah. So so the tenbfive will be in place. So that'll allow more you know allow some more structured of uncompleted approach to Oh for management and staff to be able to buy the stock like I said in the meantime, I went ahead and bought some of my share options. The best it and those got announced today. So so apologies for the delay on that thanks.
Things always take longer or moving.
Moving away from the incumbent hasn't been easy they never motivated to let you take the business away. So.
But we're in the final stages of Latin and that should be ready as a as condensate from the central.
A quick follow up to that it it's more of a short and a short question are we also have 20 million something like that in a in in cash or do you see the company also announcing like a share buyback in the open market you would see you know shareholders happy because he would say hey, you know you guys are.
Binding open market I mean, I don't have that 20 million. If you just you know bought at these prices you probably get you know 5 million shares off the float.
Which would be great.
Yeah, I think that's something we'll have to arm wrestle with Kolon Mccarthy, you know as and when the them on the revenues increased I mean at the moment everybody else around US has raised a lot of cash so that can be that can put us a little bit on the defensive depending what moves they make so I'm not sure, but just 20 million in the bank, we thought we'd make moves like that at this point, but certainly it's something we do.
Scott in terms of our long term planning as we start to ramp up the sales and the profitability of the company share buybacks are one of the one of the items for discussion for sure.
Hey, I mean, okay.
I think Mike's up segment.
Hi, I think when you look at.
Suggestion, we need to look at the landscape.
Changing that.
The end of the day.
I can maximize shareholder.
And.
Let me see.
<unk> strategic investments.
Hi.
Thank you.
That would be something that.
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The first quarter cash would be to invest is that did you.
Yeah.
That's the long term.
Thanks, Joe.
Thank you great.
Ladies and gentlemen, there are no further questions at this time I'll turn it back to management for closing remarks.
Thank you so much Diego and this is all the time that we have for you. Today. This concludes the Audionomics Q3, 2020 Investor Earnings Conference call. We encourage I can you didn't need to continue to reach out to us and we will continue to answer your questions on individual basis, you can send your questions to IR at <unk> economic dot com or could you have it.
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