Q1 2021 Ideanomics Inc Earnings Call
[music].
Greetings and welcome to the idea and Alex first quarter 2021 earnings call.
At this time all participants are in a listen only mode.
A brief question answer session will follow the formal presentation.
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As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host Tony Sklar, Vice President of Communications and head of Investor Relations.
Thank you very much operator, and welcome everybody to the idea of knowledge Q1, 2021 earnings conference call.
Joining me today I am pleased to have Mr. Alfred for our Chief Executive Officer, Ms. Kristen Helsel, our Chief revenue Officer, and Mr. Conor Mccarthy, our Chief Financial Officer.
A webcast of today's call will be archived and available in the events and presentation section of our corporate website for a minimum of 30 days.
Reminder, this conference is being recorded.
During the call forward looking statements will be made regarding our revenue expectations for forecast for the quarters and full fiscal year 2021 and 'twenty 'twenty two related to our business. These statements are based on current expectations and information available as of today and are subject to a variety of risks uncertainties and assumptions actual results may differ materially.
All of the various risk factors that have been described in our periodic filings with the SEC as a result, we caution you against placing undue reliance on these forward looking statements. We assume no obligation to update any forward looking statement as a result of new information or future events, except as required by law.
Other risks are more fully described in the <unk> public filings with the U S Securities and Exchange Commission, which can be reviewed at www Dot S. E C dot Gov today.
Day May 17th 2021, the company filed its 10-Q with the SEC and afterwards issued a press release announcing its financial results. So participants in this call who may not have already done so may wish to look at the documents as we provide a summary of the results on the call.
The format of today's call will be as followed our CEO. Mr. Al for will provide an overview of business strategy and the developments for Q1 and Q2 2021, so far.
Our chief revenue officer his interest in household introduce yourself and discuss the activities and focus going forward and of course, our CFO, Mr. Conor Mccarthy, who will discuss our financial results for Q1, 2020 one.
I now hand, the floor over to our CEO, Mr. Alford Port.
Thank you Tony and thank you for everyone joining our call today.
Financial results in Q1, 2021 exceeded our expectations from when Youre looking forward for the second quarter results.
I didn't know immix is transforming dramatically quarter over quarter.
Both pleased and proud to say that as of today. Our genomics is the healthiest. It's been in my almost 30 years with the company.
Unexciting blends of acquisitions and organic growth.
Along with significant cash on the balance sheet as management I'm confident that our revenues will continue to increase and our various business segments for the foreseeable future.
The company was fortunate to capitalized prior to a broad market pullback across our peer group, although we continue to seek value in the sector regardless of market sentiment.
Despite everything from COVID-19, and component shortages through the scarcity of containers from shipping delays. The EV industry is continuing to benefit from being the only viable sustainable future for the automotive industry.
We have taken measures to ensure such disruptions are minimized where possible through hiring dedicated resources on the ground.
However, such bottlenecks exist.
I'm pleased to say for other nomex has been successful in attracting outstanding talent to the company.
I'm already seeing the positive impact of these new hires.
The quarter began with the acquisitions of <unk> and wave.
It seems like both have been with us for much longer than around for months.
Such as the pace of change of diet genomics today.
To be honest, it's had a record quarter for earnings in Q1 2021.
Carnival discussed.
We have begun assimilating wave into our mobility segment and are helping them service their order backlog as well as introducing their product for foreign markets.
I am pleased to inform you that the interesting way for non U S markets as debt.
But Tim Wilson way from also added talent to their ranks since the acquisition.
The weighted has assisted us in discussions with our OEM partners to ensure our plan from a D. G buses and trucks will support waves inductive charging when they come to market.
Currently as you will have seen on the rate from 2020 earnings call. The buses are ready for marketing and Homologation purposes, and the trucks are having some changes the cap size et cetera.
Upon market feedback.
We've hired from obligation.
Certification expertise to help increase our efficiency in these types of areas going forward.
China operations were reorganized in Q1, resulting in a decline in revenues. However, the revenue however, the changes when needed and we expect to see revenues bounce back in Q2.
The <unk> product line has been introduced in China, because the company the country.
So let me start that again the waste product line is being introduced in China, because the country does not have high powered inductive charging and there is great interest in areas, including seaport.
And the heavy truck and bus markets.
As announced at the end of March the tree electric team landed the first of what we anticipate will be several significant orders this year in Indonesia.
Which will see three electric set up assembly facilities on the ground in Indonesia.
To help expedite time to market on those orders.
The first vehicles under those orders will be exported from Malaysia as finished products and we anticipate deliveries from initial orders beginning in Q3 with the Indonesia based assembly facilities online in Q4 early 2022.
Elsewhere for tree electric team is finalizing its new headquarters and showroom in Kuala Lumpur with an August timeline for moving in.
Final pieces are being put in place to expand into Thailand, where we are finalizing plans to introduce a battery rental and swapping program, which is designed to promote sales of tree electrics EV two wheelers.
While at the same time, providing immediate cost of ownership benefits to local businesses compared to gasoline powered motorbike from OPEC.
Okay.
Several minority investments were completed in Q1, which we hope will become market leaders in their fields.
For example, <unk> launched a rare Earth metals exchange, where they previously was my market.
Trading and some metals began this month and initial revenues have been achieved.
Congratulations to Peter and the team that.
As you know railroad metals for playing an increasingly important role in the credit.
Space.
We took a 20% stake in Italian public company <unk> Motor Company, which makes all electric performance motorbikes for both road use and racing.
I am pleased to say that the value of our investment has increased from 50% since we closed the transaction but for.
For me, an educated more than an investment and I am excited for the synergies being developed between our companies.
We made an investment in film TV in the first quarter, which has since unveiled the ethylene hypocone with Hong Chi at the Shanghai Auto show, where it received a tremendous reception.
The sales team is a fusion of U S. Italian in Chinese automotive design and engineering.
And that bringing together, what we believe will be a hotly anticipated entrance into the high for car market in 2023.
Silk investment brings with it leading edge in introducing new charging battery technology is in production vehicles.
Our investment in silk provides us with an inside look of what can be applied in our other electric vehicle segments.
Two weeks ago, we made a minority investment in <unk>, and <unk> technologies, which markets for who'd be social media platform.
As part of that deal, we divested ownership and great fun as we believe this represents a broader opportunity to unlock the value of those combined investments such as great volume continuing to operate within genomics.
In our press release last week, we were delighted to announce a definitive agreement to acquire <unk> hybrid.
And American manufacturer and supplier of fuel sales drivetrain and other technology components essential to the development of zero emission vehicles.
As mentioned in the press release U S hybrid will unlock a made in America capabilities, and we anticipate integrating that EEP and hydrogen fuel cells interact with each vehicles and.
In addition to helping them scale their existing customer base of Oems transit authorities and specialist customers in sectors, such as aerospace and defense.
Dr. <unk> and his team have a portfolio of technologies, which can be leveraged internally and licensed out to the broader market.
So we are very pleased that U S hybrid selected autonomics as the partner to help them scale their business.
This acquisition expense for strategic positioning of our genomics as a provider of innovative technologies capabilities and solutions, which are already well established by those seeking to employ them in vehicles of all kinds.
We are developing are charging as a service model for launch in 2021, which we believe will unlock orders and revenues in North America and be the precursor to what we hope will become future vehicle as a service and energy as a service offerings in 2022 and beyond.
Yeah.
Yeah.
Vehicles vehicle Episurveyor would migrate fleet operators over to entirely Opex based model and enable them to achieve the pay per mile model the hepatocyte.
While wave services backlog, we are looking to add sales from existing customers. In addition to new orders to increase revenues in 2021.
Although the revenues tend to be lumpy Q2 is looking stronger than Q1.
We are hoping to get the charging as a service offering in place for wave customers. This year to help smoothed out lumpiness from quarter over quarter revenues by replacing upfront payments with recurring predictable monthly revenues.
Tim You also will continue to deliver strong revenues in Q2, along with improved along with an improved quarter and China are wave operations and potentially the inclusion of <unk> hybrid revenues from the point the deal officially closes.
As I mentioned earlier tree electrics more meaningful revenues will start in Q3, we.
We do not anticipate in the DG to contribute to revenues until next year, but we do hope to get order interest in 2021 and areas, where we have specialized knowledge such as sea ports airports et cetera.
And our intention is to cross pollinate those orders with both ways and use hybrid products.
What we have put together for investors is what we believe is a compelling offering of products and services, which will produce revenues in the short medium and long term.
The presentation deck, which accompanies todays earnings call will be filed as an 8-K with the SEC to enable investors a full context of our organization and the opportunities being pursued.
In particular I would refer you all to slide 15, which dictates details alright genomics mobility ecosystem.
You'll see from this chart, how our shared services platform acts as a force multiplier across the aisle genomics mobility businesses.
And how each is designed to provide value for others in the ecosystem such that we maximize sales revenues achievable from each customer.
Yeah.
This is where we differ from most other companies in the EBIT sector for active perhaps only a single for two areas of activity for our.
Our constraint regionally and May face a significant period ahead until they achieve profitability.
We believe we have put together, a prudent and flexible approach, which enables us to be nimble and maximize the shareholder interest until the industry approaches maturity.
I would like to mention that we along with our peers from partners in the industry and look forward to receiving the details some clarity from the buys and the administration regarding their infrastructure investment plans.
Currently we see a situation whereby potential buying yourself back pending more details as fleet operators and others need to understand what does support the government is providing and the transition to zero emission vehicles before they have the conviction to pursue the transition planning.
Carriage fee administration to understand the need to bring the details to market. So we don't think this avoid and which confident planning is not achievable.
Finally, I'd like to thank shareholders for their price you can support the EV sector is on a trajectory which is gaining momentum.
But it is one which is not suited for short term trading explorations.
Companies, such as our genomics anticipate shareholder value to grow most significantly in the medium to long term.
Although we do consider ourselves one of the few value stocks in the sector due to our ability to derive revenues in the short term.
Thank you all for tuning in today I'll now hand, you over to our new CFO Christian household to introduce yourself in their areas of responsibility and iron dynamics.
Kristen will start for feature on our earnings calls going forward.
Okay.
That's a very brief introduction I recently joined <unk> as the Chief revenue Officer.
Have both technical and I have both a technical and business background and at scale. The number of companies in EV and clean tech space over the past 12 years.
I am incredibly excited to join this team at a time when we are building and aligning our operating entities to lead worldwide in electrification and clean technology, delivering both real and disruptive change as well as meaningful revenue.
I spent much of the last several weeks learning about our current IV and omics ecosystem and focusing on how to build our business unit.
Or just take way, while simultaneously scaling revenue in.
In each case the opportunities and challenges are unique.
I have visited with each of our businesses in the United States.
I'm working directly with our colleagues overseas until such time as international travel is appropriate credit.
For me to visit our businesses and operations in Europe and Asia.
At <unk>, we have a strong and well developed organization that had its best quarter in Q1, 2021, and I am pleased to say that we are developing new opportunities to support growth and expand revenue streams beyond their traditional business line.
My visit to way we.
Enforced my strong belief that day.
Electrified future will be driven by inductive charging.
The current wave product is a beautiful piece of engineering and has been working in some cases for several years in challenging conditions and is therefore, a demonstrated that we have a reliable and robust product ready for adoption at scale our.
Our wave installation in the Antelope Valley at the Antelope Valley Transit Authority in Northern Los Angeles County is the largest high power inductive charging system.
Weighted in the United States.
Has significantly.
Acquisition of ways means that for the first time in I D. Anomic history, Our company has delivered consequential charging infrastructure revenue.
It is an exciting time to be in the EV business and we have big plans for our wave business along with our other operating companies.
I was also able to spend time with electric team at their new facility in Santa Rosa.
While it's still an incredibly young company. They have made remarkable strides with their scalable approach to micro manufacturing as well as their thoughtful product lineup.
I expect continued positive developments from select assets throughout 2021, as they expand add staff and grow to meet the strong customer interest in their product.
One significant piece of our overall E D energy and clean tech offering so.
Into place with the upcoming U S hybrid acquisition announced last week.
Led by Dr. Abbas good Dorothy the team has nearly 30 years of solid engineering advancements in their catalog many of which we plan to leverage.
Is it synergistic addition for the IV Anomic global ecosystem of businesses U S. Highbred will allow us to continue to lead the global EV transformation with a focused and dedicated innovation center.
Simultaneously unlocking the commercialization potential of their remarkable product portfolio, allowing the company to deliver at scale for.
The balance of 2021 and 2022, my focus will be to drive revenue in three ways.
First Jim.
Grow each operating company within our IV anomic ecosystem with priority on expanding customers launching new product sales.
Livery top line numbers and building backlog.
Second we want to align all of our sales business development marketing and pricing activity within each business unit to achieve scale. This effort will be supported by investments in both human and working capital.
Third we are identifying the synergistic opportunities available to us from our broad global footprint so debt.
We are able to penetrate new markets and develop unique solutions.
This may include both growing and acquiring new capabilities to round out our offering.
In closing I want to say I am thrilled to be part of the IV and Omics.
We are laser focused on delivering in the short term, but the acquisition of U S. Hybrid demonstrate that we have an eye on the future as well and the solution that will be required in the markets. We serve this is true for both IV and Omics capital, though and our EV business unit IV and Omics mobility.
I am delighted by what we have delivered to date and our amazing potential moving forward.
With the hope that the World will open for travel sometime later this quarter or early in the third quarter I will spend time visiting and learning on the ground with our international businesses and partners I look forward to sharing our progress with you.
I will now hand, this over to our CFO Conor Mccarthy.
Our financial performance for Q1, 2021.
Thank you Kristen.
Good afternoon in the first quarter work done over the last 24 months and building the foundation for growth in IP and analytics mobility and capital divisions, starting to come to fruition.
This quarter marked for fifth consecutive quarter of growth for both revenue and gross profit.
Highlights for the quarter, our revenue was $32 7 million and a gross profit of $10 8 million.
The first revenues from wave the Nymex inductive charging visits from Timea <unk>, our title and escrow services company.
Both businesses, we acquired in January 2021.
We closed the quarter with $356 million in cash, which provides a deep pool of capital for investments in our genomics she held capital business units.
Yeah.
Now turning to discuss the financial performance in some more detail.
Revenue for the quarter was $32 7 million, which represents.
Consecutive flow.
Demonstrating increasing strength of Eylea in <unk> business.
<unk>, our title and escrow business generated revenues of $27 6 million.
<unk> revenues of $1 8 million.
Which were reported in the charging and battery lease line in the web in total.
Both of these businesses were acquired in the first quarter 2021, and consequently their financial results are only included from the date of acquisition.
Revenue for electric vehicles was $3 million in the current quarter up from just 55000 for the first quarter of 2020.
As I discussed last for last quarter's earnings call. We have been reorganizing our operations in China revenues from easy in the first quarter were lower than the levels achieved in late 2020. However, we believe that the restructured China will result in a return to growth in EDI revenues in the coming quarters.
Yeah.
Gross profit for the first quarter was $10 8 million.
Which represents a gross margin of 33%.
Operating expense for the first quarter was $23 8 million as compared to $9 5 million in the prior quarter.
The increase was due principally to the inclusion of the operating costs related to the tenuous based acquisitions.
Net charge of $5 million arising from the settlement of a class action lawsuit.
Specialty from the first quarter were $5 2 million as compared to $1 8 million for the prior period.
The growth was related to an increase in legal fees consulting services and Investor relations related expense.
The increase in legal fees related provided some general corporate matters.
Talking to regulatory inquiries.
Mergers and acquisitions.
And advice in relation to the class action lawsuits.
The loss from operations was almost $13 million as compared to $9 4 million in the prior period.
The loss from operations included a 5 million expense related to the settlement of a class action lawsuit.
Interest expense for the period was.
Two 4 million.
And represents a savings of $2 7 million as compared to the prior period expense of $3 2 million.
The prior period expense included charges related to the application of U S. GAAP to the variable conversion price of the debt outstanding debt, which was all we paid in 2020.
Current currently outstanding convertible debt has a fixed conversion.
We recorded a net loss of $3 7 million as compared to a net loss of $12 6 billion from the prior period.
This quarter includes a non cash tax benefits a gain of $12 9 million arising from the acquisition of <unk> in waves.
Right.
To conclude the results for the first quarter demonstrates that the work over the last 24 months to build other company's sales to financing to charge.
<unk> business model is bearing fruit and the company is poised for rapid growth.
[noise] milestones achieved in the first quarter.
Cash of $356 million on the balance sheet.
An attractive line of acquisition opportunities.
Recorded our fifth consecutive quarter of revenue growth.
Recruited the additional team members in the U S from China that we need to capitalize on the opportunities in EV sector in general and integrate assets into a complete end to end offering for our customers.
In summary, IBM Z.
Very well positioned to take advantage of the great opportunities ahead of us.
That concludes my remarks for added back to Tony.
Yeah.
Well. Thank you very much Connor that concludes the prepared remarks by management and I know this is everybody's favorite time are.
Our Q&A session. So Victor if you wouldn't mind operating and if you could give folks the instructions on how to or is there awesome happened.
Thank you.
Ladies and gentlemen, we will now have 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 that your line is in the question queue.
You May also press star two if you would like to remove your question from the queue.
One moment, please where we now poll for questions.
Our first question comes from Craig Irwin with Roth Capital Partners. Please proceed with your question.
Good evening and congratulations on the strong quarter impressive.
Thank you Greg for.
First question I wanted to ask.
Is for.
For a little bit more color on U S. Hybrid you know this is a name we've known about for for many years in Boston.
<unk> is a bit of a legend out there I mean, given that he literally wrote the textbooks.
All the engineering students today are using to learn about drivetrain electrification.
What do you see as the potential revenue contribution.
Over the course of 2021 now I know Dr. Boss is known for his technology innovation and for <unk>.
Doing really unique projects for very demanding customers.
But are there components in the existing book of business, where you see them rapidly repeatable.
Products or is this more of a technology acquisition that fertilizer for success across the rest of the company.
Thank you Craig that's an excellent question.
Christian would you like me to take this question do you want to take this question I'm happy for either of us to do so.
Al you can start in and I can add any color.
So for it.
Absolutely. So thank you Craig. This is this is interesting yes as you mentioned.
Dr <unk> from his team.
Probably picked up a full front of clean.
Clean energy.
And low emission zero emission vehicles for the past 25 years.
Will it be pretty much everyone in the space from Oems through to the defense and aerospace sector. So a lot of folks have relied on a path for this team to produce everything from prototypes through too.
Fully working units.
Abaxis served as something of a net.
On an innovation center for the industry and <unk>.
It's allowed <unk> to reach healthy seven figures and revenues there for a year.
We believe there's an opportunity to for him to start licensing as technologies.
Thank you might be for eight or nine figures of revenue in the future.
Haven't closed the deal yet it's still subject to some a few close.
Traditional closing conditions that should close hopefully by the end of this month.
So the chances to have an impact of pushing through seven figure sway figures this year.
It's probably too early to speak off but suddenly.
We believe this business is poised for growth. He has been looking actively in the market for a partner to help us scale. The business now the EV industry and the potential for hydrogen fuel cells is very much on everybody's radar and we were fortunate enough to strike. The right course became such a T. He chose assets as partners. So this is a business that.
Does produce millions of dollars of revenue per year.
Being an innovation hub for Oems and others we.
We expect that to move up into the figure for nine figures over the next day.
Excellent well congratulations it looks like a really amazing fit for the portfolio.
Second thing I wanted to ask about is two meals and the title and escrow business.
You reported $27 6 million in revenue in the quarter, but last year I think this business for the full year did $60 million. So.
Some some interesting outcomes going on there can you explain why this business is so very strong.
This strength, maybe a little bit one time in nature.
Given short term changes in the market or is this something that can persist over the course of the year.
And you know it.
It seems that they contributed some pretty healthy margins.
Or are those profit levels.
Something that that also are likely to persist over the course of the year.
So the stimulus businesses, obviously involved in the refinancing purchasing.
Mortgage market factors.
Companies like somebody else could be incredibly well. So we're in a low interest rate environment. There was a period for a couple of weeks, where it looks like interest rates Mike.
The increase for as long as interest rates remain low we can expect from me also continued to perform well.
We don't know what will happen with inflation I think everyone's concerned because if we do see.
An uptick in inflation that we see a corresponding uptick in rates typically those are the types of headwinds that.
That impact businesses like somebody else, but that said, we're looking to aggressively support their growth plans.
They've opened up a real business, which is going to be very interesting.
So for US we have a very fiber business.
Within our genomics capital group and we're looking forward to to most strong revenues from them in the future.
Thank you.
My last question is about.
Treat technologies treat electric.
Hum.
Motorcycles and low pets.
Can you maybe describe for us if there is an update.
On the delivery schedule into Malaysia.
Or I should say into Indonesia.
And have you sketched out the.
Potential capital needed to build the are the new assembly plant in Indonesia.
For when.
Larger volume side that are being shipped.
Yeah. So I'll address the first part of the question. The second part is a conversation that's.
For the more in tune with Connor and his CFO for electric Richard Chow.
The we were quite wise to say that the deliveries wouldn't start until early Q3.
There wasn't opportunity perhaps for the deliveries to begin before that but obviously as you know Craig.
<unk>.
The international supply chain in any part of automotive, which includes motivate some more pets as well has been impacted things are moving at a little slower.
Don't foresee any delays.
Delays beyond that original July time, when we were starting to look at so we think in terms of the.
For the vehicles being delivered.
From Malaysia was finished product interest into Indonesia that will begin in Q3 as we previously said.
In terms of the Assembly facility. This is going to be light assembly. So the vehicles will be coming in and this is heavily heavy assembly of sub components. This is putting on the wheel putting on what they call the ferring the plastic citing around instead.
Inserting the battery, putting the seats and that type of thing so the facility's shouldn't cost us more than a couple of million dollars.
Yes.
Put in place and we're looking at some facilities now I don't know if you have any further two other comments Kona.
How are you.
A couple of slides.
Somebody else and this is light assembly.
Right.
Yeah.
Yeah.
There is none of the day funded capital intensive.
Capital intensive stuff like getting paid plans or anything like that so we are looking at and so at this time, we think it will be moving to two and a half to three and a half million dollars investment for them Assembly line.
Excellent well this was a very busy quarter I should say congratulations on getting so much time and all this progress I'm going to hop back in the queue now thank you.
Thank you Craig.
Thank you.
Our next question comes from Nelson Sue with Mackie Research. Please proceed with your question.
Hi, everyone and congratulations again on your great quarter. My question is the company has been doing quite a bit of strategic planning are you going to continue investing in human capital and where it will be the focus of that.
Excuse me capital of course, I mean, as our revenues grow every business needs for growth came out of the people internally to service it.
Acquired from tremendous human capital moving through the way for them as well as the.
So he was hybrid team recently for in terms of innovation I think we have a strong team that.
We are filling out a number of open positions within our dynamics.
But more broadly throughout the management in general.
Jim.
He was with the company.
We will continue hiring people, but I think we are coming close to the.
2021.
<unk> kind of opened Canada's I saw was that we had our.
Great job for you should be very pleased with the ability to bring people in and I think we're pretty close to.
Closing out the open roles so per year that we approved.
Okay, great. Thanks for answering my question.
Thank you.
Thank you.
Our next question comes from Shaun Mcdonald with Acorn Management Partners. Please proceed with your question.
Thank you very much and again I and Omics congratulations on a phenomenal quarter.
Thank you.
One thing that I would like to note actually I guess my question would be twofold regarding your newest asset U S hybrid.
And did that a lot of the revenues have been generated from some of your phenomenal acquisitions over the last year I would assume that U S hybrid fits well in the portfolio not only for generating revenues, but for being integrated into your already existing components in portfolio, So and I apologize if you touched on this but maybe from a high level integrating these.
Sales into your own vehicles could you explain a little bit of that process and then once that transition is complete are you going to allow our U S hybrid to generate their own additional revenues from products and services on their own drivetrain components or will this be fully folded into idea Nymex.
Yeah.
Thanks very much for your question Sean.
You mentioned this in the preamble.
U S hybrid and waiting for very strategic acquisition for us because of our focus from the commercial vehicle sector.
Both of them are offer us the capability to cross sell.
So by that I mean, when we sell a truck or a bus we can sell wife's inductive charging system with it one.
One of the things that the Biogen administration has underscored is that there needs to be a made in America component.
If we do the assembly here and we put in the type of technologies that we've acquired through the acquisition of viewers hybrid such as fuel sales electric drivetrains.
D. C. Comparator. This these are really really important key components and that's what you want to be made in America, because that's the technology.
The wheels for seats the windows.
People don't care about because these are all if you think they are all made in America, you have an incomplete understanding of the global automotive supply chain, but just not for.
So what's really important for the pipe administration is is the tech for taking that would be helping to fund is that providing American jobs is that American innovation genomics can put his hand up now on site absolutely for us. It is so that's why this was a really important stepping stone for us from as a follow on acquisition.
Deliver by us in terms of acquiring wave in acquiring viewers hybrid.
Get the deals done in either case as quick as we'd wanted to but but there could have been a period where they can.
The acquisitions were pretty close back to tax per acquisitions always take time and she's not.
What was the second part of the question for me Sean.
Sure My second part of my question was is our U S hybrid.
A sole entity has again gotten a lot of attention and you know their products and services are so much different than anything out there on the market. So when it comes to actually transitioning the fuel cells and the Drivetrains and the core components into your own vehicles will you allow U S hybrid to also pursue additional products and services.
On their own or will this be a wholly owned subsidiary exclusive to your vehicles.
It will not be exclusive to our vehicles for the intention with U S high grade.
We do two things one make those technologies available to the vehicles, we sell so they can meet the maiden America requirements and also make sure that other vehicles are best in class, even if we do index end up exporting them to Latin America, Europe et cetera.
The other really important features.
Avast me, saying, we're looking for a partner to help them scale for technologies. They have can very easily be scaled.
For purchasing by Oems in this country and globally as well as licensed out to Oems as well so.
So we see really two threads day one.
Keep the innovation pipe Kelly, Okay, but then it bifurcated into how we use debt technologies and how we can license and sell those technologies and products out for the quarter.
Automotive sector.
Oh, I think I can add some color here as well.
What's most important Sean is we want a doctor for Dorothy and his team his innovation team to keep doing what they're doing you know to staying at the forefront of the EV sector. The fuel cell sector and you know all of the things he's done to advance the industry over the last 30 years.
What we what we really think that that's the second part where I dynamics can provide some additional support is being able to leverage that commercial opportunity. So taking that huge catalog of products and and you know things can start to develop.
And you know putting those to work not only in our products, but lots of products.
In this country and around the world.
Alright, well that makes sense I appreciate it.
Thank you.
There are no further questions at this time I'd like to turn the floor back to Tony Sklar for any closing comments.
Thank you very much everybody. This is all the time that we have today and this will conclude the <unk> first quarter 2021 investors call.
Our team is very excited for the rest of 2021 I think we have shown and demonstrated we have come to this particular queue with some very great numbers and excitement.
And we will continue to allow our community reach out towards if you have any further questions individually. Please don't hesitate to send those questions into IR at <unk> Dot com.
Thank our listeners and shareholders analysts and others, who have taken the time to listen to this call. We urge you to refer to our latest SEC filings for any information that you need this call will be available from our website in the Investor Relations section for the final link there don't forget to be alerted to news events and other information in a timely manner. We recommend you following us on all of our social media channel sign up for them.
For this letter and explore our website at www Dot <unk> Dot com.
I am very excited as well to think our marketing team and their efforts on not only are our new branding, but the amount of content creation that we are continuing to come to market in social media and other.
Other partners that we have brought along the way.
Thank you everyone for participating in today's call. Thank you operator.
Ladies and gentlemen. This concludes today's web conference you may now disconnect your lines at this time.
Thank you for your participation and have a great day.