Q2 2021 BIO-Key International Inc Earnings Call
Good morning, ladies and gentlemen, and thank you for standing by and welcome to Bio Key's International second quarter 2021 conference call. During management's prepared remarks, all participants will be in a listen only mode. Afterwards listeners will be invited to participate in a question and answer session.
Reminder, this conference is being recorded today Tuesday August 17th 2021, if you require operator assistance. Please press Star then zero I would now like to turn the call over to MS. Kimberly Johnson Bio Keyes Vice President of product. Please go ahead ma'am.
Thank you and thank you for joining our call. This morning with me on today's call are bio he's chairman and CEO, Mike <unk>, Chief revenue Officer, Greg <unk>, and our CFO Stacy Welch I'd like to remind everyone that todays conference call and webcast may contain forward looking statements that are.
Certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of these statements.
Words, such as estimate project expect anticipate believe plan may or will or similar words, typically identify and express forward looking statements.
Such forward looking statements are made based on management's beliefs and assumptions made using information currently available pursuant to the safe Harbor provisions of the private Securities Litigation Reform Act of 1995.
For a complete description of these and other risk factors that may affect the future performance of five key please see risk factors in the company's annual report filed on Form 10-K, and other filings with the Securities and Exchange Commission lessen.
Listeners are cautioned not to place undue reliance on forward looking statements, which speak only as of today's date.
The company undertakes no obligation to revise or disclose the revisions to such forward looking statements to reflect events or circumstances that occur. After today with that I will turn the call over to Mike Davis as well Mike.
Thank you Kim and good morning, and thanks to everyone for joining our call today.
After my prepared remarks, I'll turn the call over to Fred to review some of our key initiatives followed by Kim and then Cc will briefly review, our financial results and solid balance sheet position.
In past calls we've discussed the favorable work and study from anywhere trends that had rapidly increased demand for the identity and access management solutions that we provide.
We've also reviewed core capabilities that differentiate our solutions, including our industry, leading biometric capabilities and our support for a broad away array of other identification factors that allow our solutions to easily integrate with most customers existing infrastructure.
These factors continue to support our optimistic growth outlook.
Through the first half of 2021 outperformance is showing growth and progress we envisioned following last year's recapitalization and the strengthening of our team and our product offerings, including the acquisition of portal Guards parent company.
In particular, we are seeing strength in demand for our portal guard <unk> cloud offering including migrating existing customers from our on premise solutions to our cloud based software as a service or what we call IP as a service or I guess, we are also seeing strong interest in.
Our channel Alliance partner program, which Fred will touch on.
In Q2, we expanded our reach to over 55 higher rate customers in the California College system, and we continue to migrate other colleges and enterprises to our portal Guard I guess offering for example, real Hondo College selected our <unk> platform to improve the security and user.
<unk> four it's over 19000 students, enabling them to securely and seamlessly access more than 20 of the schools enterprise wide applications.
Regarding <unk> Africa.
After starting initial hardware shipments in Q1 to support our large scale projects in Nigeria. The reemergence of COVID-19 challenges caused a suspension of activity impacting Q2 shipments.
So we continue to expect a reacceleration of activity in these efforts, it's very difficult to predict the exact timing with certainty, but we do expect to recommence at some point in Q3 and through the remainder of 2021.
As I've mentioned on each of our recent earnings call. The challenge is balancing the equipment and services required with the availability of cash that is flowing through to our partners.
The good news is that we are now in process of receiving bank guarantees so that <unk> will be paid directly by the bank for what we deliver through to the partners and other service providers that are undertaking the mesh enrollment and verification activities in Nigeria.
The World Bank is now pushing the funds down to the national Nigerian banks to accelerate the deployment process much of which has been held up because of funding.
This is a seminal event because it now means we have surety of payment as the contracts involve reducing or eliminating any risk on our part.
Our managing director in Nigeria has been heavily engaged in this process over the last 30 days.
As for our financial performance in the quarter and year to date, we were able to increase revenue Q2 revenue by 223% and revenue for the first six months of 2021 is up 247% versus the year ago periods.
The performance keeps us on track to achieve our full year revenue guidance of $8 billion to $12 billion, the midpoint of which would represent growth of 250% over 2020.
We continue to position Baidu key to achieve profitability within this revenue guidance range. However that would depend on the mix of hardware and higher margin software revenues.
Given our strong balance sheet expanding portfolio of solutions building demand for our <unk> cloud offering and the substantial growth potential.
Potential presented by our Africa initiatives, we made we remain very excited regarding our prospects for the balance of this year.
Let me now pass the call to Fred to highlight a few key business development highlights.
Thank you Mike.
As you have heard over the past several quarters Iot is focused on building a sustainable high margin recurring revenue business that leverages, our technology strength and the benefit of a software as a service business model.
We have started to see the benefit of this transition and now Q2 and six months revenue performance.
And now I'll provide an update on the key initiatives that are driving this progress first channel alliance partner or tap program continues to expand as we were able to add over 40, new partners in the first half of 2021, bringing our total to over 100, we expect this program, which substantially expands.
Sales and marketing reach on a global basis to be a key part of that long term growth, particularly as it cost is it cost effectively expand our reach into new customers, new verticals and geographies.
Earlier this year, we expanded the program beyond system integrators and value added resellers to include managed service provider MSP and managed security service device Msft's as they provide an ideal fit with our sales and marketing objectives.
So we had less than 100, K M's revenue derived from the synergy program in Q2 'twenty. One we have built a pipeline of $1.6 million of opportunities targeted for the second half of 2021.
This includes anticipated revenue from our new agreement with a large silicon valley based distributor that we expect to commence in Q3.
Work to further expand the scope of this club program, we expect to provide further updates on our progress.
Turning to a cloud based portal guard solution launched in Q4, which we call portal God, I guess or identity as a service. We are very encouraged by its progress as most customer prospects.
Interested in having been new investments in asset light infrastructure with low upfront cost. We continue to see strong demand supported good ideas, particularly in higher education, and certain enterprise market setup grappling with security challenges related to the sudden increase in remote access demands so critical.
Data and applications from outside the enterprise firewall.
Our attractively priced cloud I E M solutions support a wide variety of multifactor authentication options, including bio Key's core biometric and patented capabilities approximately 10% of about 200 active portal got on premises customers have been migrated to our cloud solution.
And we expect this penetration to steadily increase in coming quarters building, our base of more predictable recurring revenue software subscription revenue.
Innovation and new product development remains a core element of outgrowth strategy and during the second quarter, we launched our mobile app by Iot mobile loss with Palm positive a touchless PON scanning technology for iOS and Android mobile devices.
<unk> to us at twice no specialized hardware as it utilizes the device's camera to offer fast registration and enrollment while providing a very secure biometric factor to enable single sign on solutions that streamline logins, we plan to add other biometric modalities.
She has facial authentication and voice recognition to expand biometric and multifactor authentication options in Q2 mobile was selected as the winner of the 2021 Technology Innovation Award for Biometrics by Lucent tell a premier market research and management consulting firm.
<unk> built upon our substantial biometric offerings and pump positive adds a touchless biometric capability to the 16 authentication factors already supported by a political ad platform.
We also introduced our SSO concierge product, which eliminate passwords the thick client applications what applications that run from the client side with security is dependent on the local service.
We were awarded the 18th patent for continuous biometric authentication sort of expanding our IP library and providing another new method of authentication.
MS Biometric authentication is somewhat similar to behavioral recognition and it uses continuous biometric readings for more robust ongoing authentication versus a single point of time typically at the start of a computing session. We are excited about these next generation capabilities and continued.
To focus on developing solutions that deliver great value to our customers and drive that continued topline growth.
Now I'll turn the call back to Kim Johnson to review, some recent customer wins and other marketing related updates.
Great. Thank you Fred.
As Mike mentioned, we had several significant customer announcements in Q2, we added another large outsourced call center customer to implement biometric authentication with a 500 user pilot that could grow to 20000 users.
We increased our footprint in higher education to over 55 colleges within the foundation for California Community Colleges system with the addition of Mendocino College isn't your customer.
The Rio Hondo College, I teach him black with Cornell guarding Q2, as well to improve their end user experience by streamlining access to critical application using portal garden single sign on capability, while also having the flexibility and security from the wide variety of multifactor authentication options that our systems provide.
As Fred mentioned, we are also focused on migrating existing portal guard customer tour I'd ask software model, we are increasing our direct customer communications to drive such I'd ask migration and have already seen at least five migrations due to this direct outreach, including Barstow community College, and South Eastern Illinois College.
We will be working to expand our I'd ask penetration in coming quarters.
The benefit of the IDE aspiration is that it allows customers to move their IP off premise and benefit from the reduced resources required to host and maintain a system for bio key it creates a new recurring revenue stream that will provide greater predictability to our business as the program belt.
In Q2, we added two technical and so she has to further expand our customer services team and support future growth in the business.
We hired our first dedicated business development Representatives for lead development and we executed several lead generation campaign, which included multiple webinars.
Clothing, a portal guard I'd ask virtual demo and we were a proud sponsor for the <unk> cyber security showcase in order to build our brand visibility before a key customer prospects.
We also hosted our first Cat program quarterly update webinar to our value channel partners to increase awareness around Iot and our solution.
In addition to Webinars, we continued to create content such as the state of Multifactor authentication custom survey in evoke and assembled single sign on EBA bulk released in Q2, we continue to optimize the ROI of our marketing effort with defined quarterly goals and analysis.
These efforts keep us focused on driving new business customer attention and brand awareness.
Our cyber focused public relations partner managed communications continue to help build our brand recognition and credibility in the market by securing coverage in several publications during the second quarter.
Through these initiatives, we believe we are making solid progress in positioning by Iot for further growth and success.
At this time I will hand off the call to C. C for a view of bio key financial performance.
Thank you Kim.
Q2, 'twenty, one revenue increased 658000 or 223%.
Two 922000 from 307000 in Q2 'twenty.
The increase is primarily attributable to the 633000 increase in license fee revenue, which included revenue from the pistol start reporting portal Gartner acquisition that closed on June 30 of 2020.
And therefore did not impact a year ago second quarter results.
The prior year period was also somewhat negatively impacted by COVID-19 disruptions at the beginning of the pandemic.
For the first six months of 2021 revenue increased 247% to $2.9 million from 830000 in the first six months of 2020.
Q2, 'twenty one gross profit increased to 753000 from 159000 in Q2 'twenty.
Principally reflecting an increase in higher margin license revenue as well as an improved gross margin.
Margin increased to 660, 76% in Q2, 'twenty, one as compared to 52% in Q2 2020.
License fees comprised of much larger proportion of revenue in the current year period.
For the first six months of 2021 gross profit grew 237% to $1.9 million from 557000.
Primarily due to the revenue growth.
Operating expenses increased 22% to one point in time at 1.9 million in Q2, 'twenty one from $1.5 million in Q2, 2020, which was significantly lower than the growth in revenue. This increase expenses is attributable to higher product development and engineering costs.
As well as higher SG&A costs, reflecting continued investments in sales and marketing customer and customer service along with the inclusion of the portal guard operations in <unk> results.
Iot reported a reduced net loss available to common stockholders of $1.2 million or <unk> 15 per share.
In Q2, 'twenty, one compared to a net loss of $1.6 million or <unk> 60 per share in Q2 'twenty.
In the first six months of 2021 <unk> net loss to stockholders improved 60%.
2 million from $5.1 million during the first six months of 2021 weighted.
Weighted average basic shares outstanding were approximately $7.8 million for Q2 2021, and the first six months of 2021, which compares to $2.6 million and $2.3 million for Q2 2020 in the first six months of 2020, respectively.
With the increase primarily reflecting the shares issued in the company's successful fundraising in July 2020.
We ended 2021 with current assets of $17 three.
$3 million.
Including $11 five of cash and cash equivalents and no debt outstanding. This compares to current assets of $2.3 million and $2.7 million of notes payable outstanding at the end of Q2 to 2020 again, reflecting that.
<unk> 2020 cap recapitalization we've.
We've also invested about $3.8 million in net working capital through the first six months of 2021 primarily in inventory and prepaid inventory as we prepare for the increased business volumes and manage through potential supply chain issues.
Is that we can now turn the call back to the operator for investor questions.
Thank you we will now begin the question and answer session.
To ask a question you May Press Star then one on your Touchtone phone.
Youre using a speakerphone please pick up your handset before pressing the keys and if at any time. Your question has been addressed and you would like to withdraw. Your question. Please press Star then two and at this time, we'll pause momentarily to assemble our roster.
And the first question will come from Jack Vander <unk> with Maxim Group. Please go ahead.
Great. Good morning, guys appreciate the quarterly update.
Just a couple of questions for me.
I'll start with a question for Michael.
On the Africa contracts and some of your comments that you are you mentioned in your prepared remarks.
First you can you provide one can you revisit what you said restate what you said and then I'll provide some additional color regarding.
Regarding your commentary in terms of the change of how you are now being paid it sounds like payments or more of a guarantee now.
With the World Bank, and how you're being paid just what has changed with that relationship exactly I didn't quite catch that and then what does that mean.
Going forward when and if we assume we move beyond Covid.
Yeah, Good morning, Jack and thank you I can.
Perhaps a little more color around that.
Fundamentally what I said was that.
The reason one of the reasons right. Obviously, there's been you know COVID-19 related issues and that kind of thing that have plagued with literally every country around the globe, but.
One of the other challenges is and has been that getting the money from the central repository down to the vendors at the street level that are actually doing the work, meaning that are enrolling and creating the verification ecosystem.
Has been has been slow in.
In fact, so slow that the World Bank has stepped in and has put in place a.
A system such that the local or national banks in Nigeria can now do equipment and service financing directly to the vendors so that they can get the process moving.
Because only $60 million of the entire population has been enrolled to date.
And there was a plan that originally said by the end of 2021.80 plus percent of the population would be enrolled in the system, which is a couple of hundred million people. So in order to remedy that and really start to get things moving.
Now there's a process in place that will guarantee for example, bio key as a vendor and there are other vendors, but guarantee bio key payment for the products and the services that we provide directly from the bank. So you know vendors like bio key we'll get more.
Recipe in ensuring we have for example, the inventory or we have the resources on the ground to be able to support these programs.
Got you and then just a follow up to that does this mean.
The dynamic you are kind of the chicken or the egg kind of scenario you had before in terms of like you don't want to ship hardware without being paid.
Does this now expedite or does that just remove that friction altogether and now the only bottleneck to your hardware shipments or just the fact that the countries kind of.
Re closing down a bit or being more strict because of this delta variant.
Absolutely it absolutely means that and compounding the you know the financial.
It'll scenario that I. Just described was of course, the chip shortage, so getting product has been challenging across the globe and virtually every industry in every sector.
Within technology, but this absolutely alleviates that scenario, because we'll now be more comfortable and as you can see when you look at our financials, we do have a a reasonable where I'll call. It sizable inventory of product ready to turn into <unk>.
Shipment into revenue and obviously into cash in the coming months. So we're in a really good position in that regard and having the capital to be able to do that.
Especially at this time was really critical for us and I think it's going to serve us well going forward.
Yeah.
Great I appreciate the color there and then maybe just one more on on the Africa contracts.
In the first quarter, just looking through the 10 Qs. The first quarter you know what you had hardware sales over 600, almost $685000 looking at the second quarter here well you didn't have hardware shipments to Africa, you did generate it looks like license fees within Africa of almost $250000.
Is this related to is this is not related to those two contracts.
Or is this is.
Tied to that initial hardware you delivered there and this is the license revenue that's associated with.
That first quarter hardware deployment.
I don't believe that license revenue was associated with Africa Cc, maybe you can opine, but I believe that was license revenue associated with our portal guard business.
And you have perhaps not biometric biometric business as well are our international biometric business. So.
You know the Africa. For example, we have a large customer in South Africa, Canpotex Bank that has purchased well over seven or 9 million user.
User licenses from us for a bank verification identification verification projects. So the revenue associated with that perhaps might have been through the south African opportunity, but not the Nigerian or the Nigerian contracts that we have.
Yes, that's exactly right yes.
Okay, Great no I appreciate the clarity I was just curious there.
And then just switching gears, maybe a question for Fred.
On the general lines program can you just remind me again of what you mentioned the revenue contribution was for <unk> in the quarter I think it was small but just just so I have as a baseline and then.
If we assume you reach your target number of channel Alliance partners.
How much revenue would you expect to generate on an annual basis I know, it's just been near term target as well, but just so what was the revenue in the quarter from the general lines and then whats your target if you had all your targets.
Yes, we said I think it was less than 100, K. So it was close to but less than $100000 last quarter.
And we.
We will see a growing percentage of our revenue.
And that will go on a ramp over the course of the remainder of the year and into next year and as we highlighted in the statement.
We recently signed on with a new distributor.
And our Onboarding and training right now and you'll see some information about that shortly but that will.
Dramatically increased the number of partners. So I don't have a total handle on that yet but that will be a dramatic increase in the number of partners. So probably more information to come on that as that progresses.
Okay, Great I appreciate the color there and then just just one more question.
For for anyone maybe Michael.
In terms of the guidance you maintained your guidance of $8 million to $12 million of the year for revenue.
Just wondering is there any more color you can provide in terms of it that's a wide range, but just can you remind us again, what factors are embedded in that guidance and why you remain confident that.
Youre going to hit that target what needs to happen business as usual or is anything is there any aggression aggressive targets baked into that well I think I think there are three things Fred just described the capp program and the partner.
Acceleration that we expect in the second half it's always been planned for the second half and so we're encouraged that that's going to help us and contribute to a significantly to our growth that's number one.
Number two we just we discussed Africa, obviously with.
With the guarantees and the finance flowing weird makes us feel pretty comfortable that we're going to achieve our objectives. There and then just in general the growth and the migration to the cloud.
It increases our <unk> and increases our revenue for each installed base customer.
So that's another factor that we expect to contribute to our growth. So all around blended we feel really good about growth in the second half and expect to achieve our objectives and.
And hey, whether we can overachieve our objectives, obviously, if things really fall into place that may happen, but we're comfortable staying with the guidance we have right now.
Okay, Great I appreciate the time, guys I'm going to hop back in queue. Thanks.
The next question will come from Richard Arnold Investor. Please go ahead.
This is Richard I appreciate the opportunity to speak to I'm impressed by the domestic side.
My concern is totally.
Africa and I.
It's really a three part question.
Is the $680000 that was billed in the first quarter been paid.
Secondly, what part of the eight to 12 million projection and I understand that 8 million was in the previous conference our breakeven point, what part of the $8 million to $12 million is dependent upon Africa.
And then thirdly.
The prepaid expenses and investment went up.
By a $3 million.
Which would've come which account for the decrease in cash.
What part of that.
Africa is well I am concerned about Africa.
Since it represents a big shot for the company to improve.
Great. So let me knock down the questions one by one the first was the payment from the first quarter shipments that's in process right now and again with the change in in.
In the I'll call. It process again with the change in the payment process, where the banks are going to pay us directly we expect to see that cash very shortly so that's the first the second is.
You mentioned, the inventory levels or cash reduction I E turned into inventory levels obviously.
A portion of that is clearly related to our Africa contracts, but we're very careful not to get too far ahead of ourselves, but on the other hand, we had to take advantage of the opportunity to get the equipment with the chip shortages and the difficulty in that most manufacturers have had.
Right now we wanted to be sure that we got ahead of the curve.
The third component of our second component of that inventory position is our traditional products.
We are working on.
Some new and innovative technology that we're going to introduce in the second half and so there is some money associated with that development as well.
So I think that addresses the inventory question.
Other question you had was around our guidance and how much of that is related to Africa, well. If you look at the last two quarters for example, and look at our portal Guard business just in general at a steady state.
It's if we didn't grow the business at all it would represent probably about five NR biometric business would probably represent about $5 million to $6 million.
Independent of Africa. So as you can see in our guidance, we don't have a tremendous reliance on Africa, although clearly we do see significant significant upside.
As the projects begin to roll out because remember there's tens of millions of dollars in opportunity there not just.
Not just millions are single digit millions so I hope that answers your question as well.
So I don't think it answers the question if you look at the stock this morning.
At least the last I saw it.
It doesn't represent a confidence in what we're projecting but I try to be confident in our powder you positive and I hope you do well. Thank you for answering my questions.
Richard.
Again, if you have a question. Please press Star then one our next question will come from Dan Kamus with.
Investor. Please go ahead.
Hi, guys.
It sounded like from your initial comments that the bank guarantees or not a done deal.
That's correct.
There, yes they are.
There are there's no other berries, you have to get over to to actually get the guarantees there's always barriers in Africa.
So.
What does that mean that there they're done, but there's still barriers no no I'm being a little facetious, there I mean again.
There there that processes in place, it's it's in place and ready to go. So that's the latest we have we monitor this on a almost on a daily basis and.
That's the situation but.
She's just about.
There's always something in Africa, as Richard mentioned, you know the confidence in being able to deploy such a significant program is.
Is challenging but the.
Funding is there.
The requirement is they are especially again given that in order to to really get the country, especially Nigeria out of the doldrums and to begin to build an ecosystem that can put people to work and can create an economy outside of the government. This is the only option so.
It's a challenging business, but for those of US who I believe this like very very strongly believe this for those of US who you don't have invested.
Hang in here theres going to be significant reward.
Okay can you say how much of the eye.
Don't know, if it's $45 million or 75 million in contracts will get guaranteed.
I think it will be iterative so as things get deployed obviously our goal is to point all of the initial hardware right to get things moving and I think it will be iterative over time, you know, we're not going to get there as I mentioned to Richard we're not going to get too far ahead of ourselves.
No we have to have the inventory in order to be able to immediately ship. It on the other hand, we don't want to be committing to you know huge amounts of product. If in fact, the payment theres going to be there. So it's a balancing act but.
The contracts are still of the magnitude that we discussed clearly if they get fully deployed.
It could represent near $100 million of business.
You will also see some of that as I mentioned before Youll see some additional products that we're going to be introducing in the second half.
That will also have a significant impact on the revenue opportunity in Africa going forward.
Okay.
Well last question on this.
So.
Will you at least for 2021 or the next 12 months or something get guarantees for.
The $4 million in inventory you've accumulated.
We believe so.
On the.
The continuous biometric user authentication patent a few years ago, there seemed to be a lot of buzz about.
And screen fingerprint sensors, but to my knowledge they haven't come to fruition fruition I don't think are there issues with the technology and are you going to be able to monetize that patent.
Going forward to any degree.
Yeah.
Well two things in screen fingerprint sensors Youre right. There was a very aggressive move at 1.2 to.
Get them embedded in particular in mobile devices, and we haven't seen much innovation around that area recently, but.
Continuous biometric patent is not just associated with fingerprint scanners, so keep in mind that continuous authentication across.
Perhaps.
Facial biometric read or a behavioral biometric Reed can also apply to that patent so it has a broader.
Use in a broader.
Perspective beyond just fingerprint scanners.
Okay.
Yeah.
I've got a question on.
On the National identity Management Commission.
They've been.
Putting out releases are touting their increases of 10.
10 million users in the last four months and.
Increase of enrollment centers to 3800 and whatnot and.
They have some they they taught this much awaited Android enrollment system is now ready for deployment does.
Does that have anything to do with with your system or.
Is that something else.
Absolutely does we're very focused so so they are touting again up to 60 million enrollees with which is again only 20, 25% of the total required enrollment over time.
The centers that are set up are set up in the in.
In the larger cities RV.
Our vendors partners. We're working with are very very focused on mobile enrollment and if you look at our pocket 10 fingerprint scanner, it's very very small device that does.
442 scanning.
And it's a device that is low power very very portable and in order to get the country truly enrolled there have to be mobile centers set up and you have to actually go to the people to get them enrolled and that's what we're very very focused on so the majority of the.
So going to take place in a mobile venue overtime, because it's going to be out in the remote areas.
That collecting that data and getting those people enrolled is going to be critical and then the verification services that are going to be provided above and beyond the initial enrollment create.
Create a whole new level of opportunity for us where our.
For example, we'll be creating that was the whole initiative around creating 1 million new jobs within the Nigeria ecosystem for payments payment processing financial services.
So that's where all of this comes together it is a huge huge opportunity and the end game also for us beyond providing the hardware is providing the identity management ecosystem. The software and the service are eidos is perfect for remote.
<unk> on these mobile devices all.
All of these mobile Pos devices will have fingerprint capability as well as cameras and <unk> barcode capability all of those things they'll have printers, so that's where the real I'll call. It solid high high margin recurring revenue will come.
And that will that will follow the initial.
Equipment deployments the enrollments and then ultimately the verification services.
I see.
The thing I'm not sure about is.
They were touting that seat.
These 60 million users each have about three to four Sim cards and that covers all the mobile devices in the country. So I thought they were well on their way so I'm little confused about.
Is it Sim cards or is it the actual people.
That they're trying to get covered or both.
Confused because it's Oh no it won't be don't be no. It does.
Be confused it's individuals' it's individuals.
So its citizens that has nothing to do with Sim cards.
It's individuals.
Alrighty.
That's what I I'll go back in the queue I'll see if anybody has got any more questions. Thank you very much youre welcome.
Again, if you have a question. Please press Star then one.
The next question will come from Frank <unk> with.
<unk> Associates. Please go ahead.
Good morning, Michael Nice to chat with you and thank you for the uptick.
Up to date.
I don't know, if you're aware, but I've been so called gamblers since 1961.
No there is someone on the telephone call today.
Trying to get the stock down to zero, you understand what I mean by that right.
I'm not so sure but what have you.
Do Michael if you want to care for the shareholders. What you should do is called the FCC and tell them that there's someone fictitious sleep trying to destroy that company.
Okay, we will certainly look into that.
Again, if you have a question. Please press Star then one.
This concludes our question and answer session I would like to turn the conference back over to Mike deepest squall for any closing remarks. Please go ahead Sir.
I just want to thank everyone for participating in today's call. We look forward to updating you on our third quarter call, which will likely be in November as always we will continue to provide interim news and updates in the meantime.
Also we plan to present at the license partners fall Investor Conference a virtual event held the first week of October.
We'll put those details out when we have them again. Thank you all for your time today.
The conference has now concluded.
Thank you for attending today's presentation you may now disconnect.
Okay.
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Great.
Great.
Thanks.
Okay.
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Thank you.
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