Q2 2021 Digital Ally Inc Earnings Call

Ladies and gentlemen, thank you for standing by and welcome to the 2021 second quarter operator operating results calls.

All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session.

I would like to ask a question at that time. Please press star one on your telephone keypad.

This conference call may contain forward looking statements within the meaning of section 27, a of the Securities Act of 1933 and section 21 E of.

All of the Securities Exchange Act up 1934.

The words believe expect anticipate intend estimate may should could will plan future continue and other expressions that are predictions of or indicate future events and trends that do not relate.

To historical matters identify forward looking statements.

Sure.

These forward looking statements are based largely on our expectations or forecasts that'd be then can.

Can be effected.

By it accurate assumptions and are subject to various businesses.

And known and unknown uncertainties, a number of which are beyond our control.

Therefore actual results could differ materially from the forward looking statements contained in this document.

And readers are cautioned not to place undue reliance on such forward looking statements.

Digital ally will undertake no obligation to publicly update or revise any forward looking statements, whether as a result of new information or future events or otherwise.

A wide variety of factors could cause or contribute to such differences and could adversely impact revenues profitability cash flows and capital needs.

There can be no assumption.

Assurance that the forward looking statements contained in this document will in fact transpire or prove to be accurate.

At this time I would like to turn the call over to Stan Ross Chief Executive Officer.

Thank you and thanks, everybody for joining us today we.

Well, we hope to do today is give you a good clear understanding the bar and a recap of the second quarter numbers also give you some insight to all the different <unk>.

Divisions within the digital ally family, including our most recent SEC.

The acquisition of our medical billing company and also give you some insight on some of the other opportunities that we're seeing that we hope to be able to complete yet this year. So with me today is also Tom Heckman, our CFO and I'll have Tom go over the numbers.

You Stan and welcome to everyone I appreciate you joining us today.

We have not yet filed our 10-Q, but I expect to be filing that shortly so my comments here will be at a high level and I do recommend that you.

Do review the 10-Q for more in depth look at what went on during the second quarter again that'll be filed shortly.

Based on the second quarter close our second quarter.

Very good I mean, it was impacted both positively and negatively by COVID-19, and we'll get into that a little bit later, but at a high level. Let me give you some numbers and some percentages revenues bounce back total revenues were up 44% year over year and up 21% year to date.

Gross margins are more importantly, gross margins improved to 51%.

From prior years, 23%, so very nice pickup in gross margins on the downside our SG&A expenses increased to 53% a year.

Increased 53% year over year, and 32% year year to date.

But we'll go through that a little more detail I think it will make sense. When we can tell you some of the details behind the increase in SG&A.

And what to expect on a go forward basis looking closer at revenues are product revenues in the second quarter increased 63% year over year.

And the most important thing.

To pull out of that is our Evo HD, our new modular in car law system is really gaining traction.

It reserve represented 25% of all revenues not just product, but all revenues in the second quarter of 2021 versus 9% last year. So obviously, if we're gaining traction.

Customers are excited and attracted to the features that it represents and we believe that it'll be the flagship model going forward and somewhat taken over the dvla hundreds. The DBM 800 was remained steady at about 18% of revenues.

But again, I think youre going to see Evo HD revenues improve.

To the detriment of the <unk> hundred revenues and we're happy with that because theres, a higher price point on the Evo HD and.

Also a better gross margin on the Evo HD X because of the features it holds.

Excuse me.

Secondly, the first few body cameras contributed about 12% of all revenues.

Steady with the prior year, but importantly, we have are in the process of introducing it in a new first few too which is directed towards the commercial customer market is really the first body camera that the company has come out with that specifically configured and customized.

For commercial use.

It's in <unk> and at several locations and we're very happy with the results of that and we do expect a new version what we call. The first few pro that'll.

That will be released later this year early next year for the law enforcement market. So we were happy with the improvements in any upgrade to the existing first few body.

Camera and I think the reason for that.

The revenues remaining roughly the same.

People know about the first few upgrades and probably are waiting for that.

The DBM to 50 commercial.

Product dropped to about 2% of revenues in the quarter and again, that's really COVID-19 related.

Our cruise ship cruise ships are still struggling to get their boats back on the water taxis have been affected and other commercial companies. So I mean, I think that that drop is to be expected on the good side. We have introduced the DVA of $2.50 in a box, it's a modular system that.

It does not just reside in the rearview mirror and what we've found is that there is many commercial customers like 18 wheelers over the road truckers delivery trucks that don't even have a rearview mirror because there is no rear glass and the driver compartment. So.

We were fighting that.

Our reality for some time now we've come out with this DRAM $2.50 in a box that takes care of that and I think I think we're going to see a nice rebound in sales.

When we get.

Get the commercial market lined up so.

Excuse me on the shield thermal view sales they have slowed somewhat and that's in response to the COVID-19, vaccinations, becoming effective in and going out. However, right now we are fielding many inquiries and developing leads and following up on lead.

And in the reopening of schools, both primary elementary and colleges.

That could use our especially our thermal view product the temperature control product.

And we're we're following those leads and we're hoping that those result in sales in the third and fourth quarter of 2021.

Overall service revenues increased 14% year over year.

Obviously, the COVID-19 related travel restrictions are lifting and that's improved our our installation revenues and the like cloud revenues have been challenged and we're down just a tad this quarter over a year.

A year ago, and that's because a lot of the cloud revenues come from our commercial company base and therefore with the commercial.

Clients are being down or are not back in service to a certain extent, obviously affected our cloud revenues.

Our overall rental revenues have increased substantially and a big part of that is we did have a sublease on the building that we acquired this quarter.

That generated the rental revenues for so on the sublease.

That will continue into the third quarter, but in the fourth quarter, we expect to move our operations into the new building.

Gross margins.

Mostly increased to 51% versus 23% year over year, and that's primarily related to the migration to the higher margin Evo products and the overall increase in service revenues and remember service revenue has always had are generally have much higher gross margin than our product gross margins for the second quarter of <unk>.

Product gross margin was 41% our service gross margins were 72%. So you can see the improvements there and hopefully we can we can hold that there will be some challenges for the remainder of 2021 and maybe beyond we don't know yet I think everybody has heard of the shipping cost increases that are.

That are out there because of the COVID-19 issue and the component part shortages that were running into so we're going to have some headwind there but on.

On the on the good side, though the migration of sales to the Evo product I think will help improve gross margins in the future quarters.

Looking at the SG&A expense increases about one 3 million year over year increase the largest driver in that increase was.

400000, and professional fees and expenses and that generally includes all legal audit and accounting and related services.

Theres about 165000 of due diligence expenses legal accounting and what have you.

That hit hit this line item in the second quarter due to the the acquisition the elite medical billing company that occurred on June 30. So if you think about it we had to expense the cost and expenses of that acquisition, but we did not get any of the revenue.

Our margins from the Leach at it we will see that in the in the third quarter and I think Stan made may discuss this more but we're very happy with that elite acquisition.

We expect a run rate of about $1 million annually in revenue.

50% to 60% margin on that gross margin so.

It will definitely be accretive to our bottom line.

Also driving.

Special fees was proxy related costs of about $90000 hit in our second quarter and that was primarily just a timing issue last year, we had two to delay our annual meeting to the third quarter.

That was because of Covid.

So the proxy costs that hit the third quarter last year it hit us in the second quarter of this year. So that's that's really no change, but it did.

Served to increase the overall SG&A expense. There. We also had a substantial amount of due diligence costs on several other pending acquisitions that were out there both in the medical business.

As well as outside the medical business and obviously, we have to expense those as incurred so all of that related to the $400000 increase in professional fees year over year. The second portion of the increase was about 385000 in selling and promotional expenses.

<unk>, our NASCAR affiliation started up again last year was mothballed, we didn't have any customers or are any any.

Anybody at the NASCAR races. So we werent worked.

Doing our part of the affiliation there.

It's obviously started up again and so that's that's a large portion of the cost increased in the selling and promotional expense. We also had some other sponsorship of promotions that were directed towards our brand recognition and improvement in our shield product line.

The other area that increase was about 100000 in research and development.

The work, we did all the new body cameras, and we're spending a lot of time and engineering efforts customizing, our commercial products to meet specific customer requests.

In other words, where we're very close to a couple of large.

Large customer orders in the commercial area.

That are requesting some customization to our products and that's all getting expense due to the R&D. So we expect those to result in sales shortly hopefully in the third quarter, but if not certainly by the end of the fourth quarter of 2021 the remaining.

A portion of its SG&A expense increase year over year was predominantly insurance cost related COVID-19 has wrecked the insurance market and especially for us a smaller smaller business. We've seen gigantic increases in medical general liability workers' comp DNO all of them.

Insurance lines or are significant increases in that that helped.

Increase the SG&A expense year over year.

If you go down into other income.

You'll see a $2.9 million dollar charge for warrant change in warrant derivative liabilities. We spoke about this in the first quarter and if you remember.

We had 24 and a half million dollar benefit hit us in the first quarter that turned into a $2.9 million charge in the second quarter again these are noncash charges.

Accounting related.

Volatility is there you can see what happened quarter to quarter.

Can't really tell you, what's going to happen next quarter, but it all depends on market conditions.

But do expect volatility, but again this is a noncash charge and that charge in the second quarter equated to roughly <unk> <unk> per share.

And earnings so it was substantial but it was noncash and it's volatile and we just can't project where that thing is going.

Turning to the balance sheet, our balance sheet remains very very strong. If you look at we got $58 million of cash at the end of the quarter $40 million of positive working capital.

We've got net equity of $47 million.

We have interest bearing debt of only 500000, 150000, which is the ideal alone.

From the SBA group bears about 375% interest.

And there's a $350000 earn out note on the elite medical acquisition.

Theres about 3% interest rate so.

Only $500000 of of our interest bearing debt on our balance sheet of $83 million. So.

Well within our within our means to cover those costs.

With our strong balance sheet position.

What we've accomplished in the second quarter I think is good and to be expected in future quarters first of all we did form our medical division digital ally healthcare. It in turn entered into a joint venture with a medic medical billing provider.

And what we're doing as a roll up strategy in the medical billing industry.

These people.

Doctor doctors hospitals, chiropractors dentist as customers and they do all their insurance billing and collection work for them for a fee obviously.

And there is just hundreds and thousands of mom and Pops basically across the United States.

Our our our target population.

For this roll up strategy. So the first acquisition was done elite medical.

I think out of.

Detroit I think is where they were from.

There's many many more out there.

Pit are our template for an acquisition based.

Basically what we're trying to do is buy them for roughly a one one times revenue.

Three three times EBITDA.

And.

That's been a pretty productive template force, we do expect to close on a second larger second and larger medical billing company acquisitions before the close of the third quarter. Our purchase price is about $2.8 million with about six or 700000 of that in the contingent earn out note.

So it again fits that template that we've developed for the elite medical acquisition.

We will we are currently looking at several other acquisitions that are not medical billing related.

And that May very well close by the end of Q3, but we just don't know yet I'll, let Stan address those in more detail.

With that I will let it get it back to Stan alright, Thanks, a lot Tom and very good job and thorough going over the numbers I think that.

Very well explained.

And how we got here.

Right now.

Elaborate on where we're going Tom did say on the medical side of things.

I have talked to the principles of that or.

Of our medical.

Billing side of things they.

They do have a letter of intent and an acquisition that theyre trying to get closed here in the in the third quarter and you will see some.

Contributions from their efforts in our third quarter numbers more importantly, I think they've identified several more that they are very close to and are in negotiations with and doing some due diligence on so I would anticipate.

Hopefully they'll get this one completed here in the third quarter and I would not be surprised if they were able to.

Maybe another two more by the end of the year I think the anticipation and the goal is for them to get somewhere north of $7 million in a run rate by the end of the year.

That would be associated to the company so pretty excited about the efforts loved the template loved the numbers love.

The the way that we take.

Take advantage of.

Their expertise and enhance the the.

The EBITDA of that.

It will be reflected in their numbers also.

Also Tom mentioned that we have identified and.

I'm hopeful to be able to announce another acquisition nonmedical related by the end of the quarter.

All of these that we're looking at should be a very accretive to.

Through the company.

None of them are biting off so much of our cash that we would need to be.

And putting ourselves in a weak spot by any means and we look for these to be generate and then kicking off cash quickly.

Quickly, we're not looking at kitchen falling knives were not looking at turnarounds, we're looking at opportunities there.

We can utilize a couple of things one being our a rolodex, but whether that'd be law enforcement or other areas.

In the commercial areas that were very strong in.

Utilize our capital and utilize our support that we can bring into these companies. So that we can help expand their growth more than worrying about trying to find someone that we could turnaround. So very excited about <unk> future digitalized subsidiaries that were looking at and I do believe that.

With the.

Covid and the schools opening back up and we're seeing the new strand of Covid that's out there.

Thermal views and the other shield products will continue to see some good growth between now and the end of the year as well so I'd like to go ahead and open up the floor for <unk>.

Q&A at this point.

At this time, if you would like to ask an audio question. Please press star one on your Touchtone phones.

Once again that is more one to ask an audio question.

One moment for your first question.

Your first question comes from the line of Aneel beyond meat, so with edginess.

Hi, good morning.

In your comments on the first two looking forward to seeing the impacts of that product historically, the new products you've launched in that segment had been higher margin is that also true for <unk> as that starts to rollout to the commercial eventually law enforcement channel. Thanks, Yes, yes, the body cameras are high margin.

<unk> for us.

But remember.

The body camera is generally done on a subscription basis. So it's not really counted as a hardware sale upfront generally there are some.

It's usually.

Yeah.

<unk> done on a month to month lease kind of basis. So it generally ends up into our our service income at the end of the day, but it is one of our highest margin products upon sale.

Okay, and just a second question if I could.

I think Tom in your comments, you talked about the potential opportunity for.

Shield in theory.

The school start to open but as we see.

I think the review.

Maybe the prior conference calls <unk> discussed.

That product had some opportunities in Europe.

Theaters or stadiums or something and then of course, the return to the workplace for many companies that know the timing of that is somewhat uncertain, but eventually as people get back in the office do you see potential for some of you in those two particular.

Feels whether it be the office, the workplace or theaters mass gathering type of places. Thanks, Yes, absolutely I mean I can see it.

Like you said large gatherings to try to make sure and.

Not have wanted to see.

Big Breakouts, because concert, let's say or movie theaters.

Super spread that's what I'm looking for.

Yeah, absolutely I mean, the thermal view.

We've already seen it.

For instance, here in Johnson County Community College bought 110 of them further their schools and classrooms in.

We've seen it in.

Everywhere from our beauty salons to restaurants. So a lot of people you know not just offices and professionals are seeing it as a method of keeping their customers say you really don't want someone coming in thats that is carrying a fever and could be contagious.

We're seeing it in all aspects, but you will see the larger numbers coming from these bigger opportunities much like a stadium to where they would have them at every gate and at every entrance going into those stadiums.

Okay. Thanks, very much gentlemen.

Thank you.

Your next question comes from the line of Bryan Lubitz with Aegis capital.

Good morning, guys.

Morning, Brian.

So revenue was up 44% and Tom you attributed that to the growth of the Evo HD.

Alongside the Evo HD are you guys still looking to the package that with the reoccurring revenue model with data storage is that where you're also factoring in the 25% or are you guys counting that as a separate business.

Now the cloud revenue as reported down in service revenue.

So that's not part of the 25%.

That's the the hardware sales piece of it so.

If you add the cloud.

Cloud service, it's even higher than that okay, I didn't see anything for reoccurring revenue guys. Sorry. It. This morning, I was having a hard time getting the actual report up.

Is that growing year over year as well quarter over quarter or are we still have some growth in that segment.

Well, there's been there's been some challenges with the commercial cloud usage because of the.

Obviously, the Royal Caribbean cruise lines, and so on and so forth that are heavy users on the commercial side.

We have not ramped up their business yet so the recurring revenue piece has not grown like we'd like it to but we do expect it to return to normal growth patterns.

Once the COVID-19 stuff is behind US Brian If you would just sit there and carve out let's say the the law enforcement side of things those reoccurring revenues have continued to grow.

Okay.

Hamstrung commercial's, not there yet because of Covid correct correct right.

Now staying with the commercial part of it.

You know you guys over the course of the last several years have had been able to grow that into many different areas. We've heard about the stadiums. We have heard about the local businesses, we hear about the hospitals.

Is this kind of a two part is the medical billing acquisition.

Company is that to grow the company and get more.

That thermo view and more of that that product to the hospitals is that really what youre on game is with those acquisitions.

First of all the.

The numbers are good to begin with so we'd like to the overall numbers and then this is where I talked earlier about our targets and that would be in our rolodex I mean, we're in children's Mercy here in town and I think St Lukes and numerous hospitals that were in and clinics in dental offices and stuff like that so we can open up the door for.

The billing side of things to a lot of different.

Customers that we currently have associations with as well as they can open up doors. So that we can get in there and talk about the thermal views and the shield product. So it's a situation where each other's rolodex helps each other out quite a bit.

And that was the reason for that particular target there I will say, though.

Again, just slow pressed with her.

Of our talented engineering team.

Sales support and all the above.

We're going to continue to be able to branch in <unk>.

Areas and sectors that.

That are going to be new to this industry.

Body cameras.

We are starting to pop up in a lot of different areas.

And obviously you can see the need for him on airplanes has recently, but there'll be a lot of different areas, where body cameras were come into play and also the commercial.

In car systems.

You literally just saw stole my second part I was going to ask about commercial with the airlines.

Been very hectic recently, so I don't know if we're connected with ESP or something but you literally just stole my second part.

Tom just a question for you the SG&A, obviously, it ate into our bottom line this past.

I mean your numbers look great you gross revenues are up to 51%.

Back to normal we obviously, you're hoping to get to 60, if I remember correctly with what you said in the past and you know obviously the revenue was up significantly quarter over year over year excuse me as well.

Do you see those SG&A charges at what as one time charges.

You expect that to be the norm moving forward.

Well I certainly hope that the insurance piece of it moderates some as this COVID-19 stuff gets behind us.

The largest driver was the professional fees and that was driven by acquisition related costs. So it's really it's really non recurring in the sense that we're not we're.

We're not buying elite again, but we do anticipate buying other ones and we have one in the hopper right now so.

To a certain extent there will be.

Some lasting effect of that as we do these acquisitions.

But.

As far as as as the R&D side. It was up about 100000 year over year.

We continue to bring out new products, Brian in this commercial.

Body camera is exciting to us and I think it's going to excite the market as well.

We've already got some pretty sizable opportunities that have asked us to customize that that.

Unit and that costs R&D, So I guess to wind it up yes, there is a certain part of that is nonrecurring.

But there is.

For the to the extent that we do continue to acquire companies there is going to be an increase in professional fees.

Okay.

The marketing aspect of it are you guys doing more radio spots are you guys doing local advertising. Obviously, we've we've heard of you guys up here in Europe in the radio and things of such with connections with Metlife.

We were all anxiously looking for the next video to be shown on whatever goes viral to have the digital ally stamp to have your guys. Local there. So what are you guys doing to try and spread the word more about these products because obviously they are so good.

Yes, and you are right.

Early on I thought it was a little bit.

Distracting to be sitting there and having your watermark.

We frame.

Hum.

Our videos within our App, there because youre really trying to attempt to.

Collect collect the video.

You don't want to have an obstacle in the way that.

And up.

The turn from the video.

Trying to.

I guess shoot so but it is something that we could do we have been able to.

Start putting that in all of our videos.

We keep a fairly small but it is there and if there is a video that goes viral.

The new units the digital ally name will be in there.

Sure.

Alright, guys well listen thank you for your time and good luck on next quarter, hopefully, we get the acquisition buttoned up and hopefully the growth stays in the sales as well.

Thank you Brian.

Your next question comes from the line of Newman, Atlanta, LTE private investor.

Yes.

Hello.

Hello.

I would like to ask you a couple of questions.

Firstly about the contracts and do you have any future plans, what's going on exactly with you and how can you exactly make of digital Ali a better company. Because currently we have noticed a core communications from Europe behalf. We don't know what you are doing or if there are any significant sell especially because no.

Normally the new President has been great promoting maiden America production company, while other companies are working on hunting big contract guidance I'm, an investor and I feel that you are not doing anything with them that you are just going after selling cleaning and sanitizing products, which is not what we ran for long.

For the first time that we invested in digital Ali I mean, besides the stock has been declining in a terrible way which reflect like.

Is there a declining work from Europe behalf, I'm, sorry to be very self insured, but we believe in digital ally. We held things are going to change for the stocks and we're gonna be able to gain money, which is happening in major companies currently but nothing digital ally.

Unfortunately I am thank you. Thank you.

Yes.

I hope you feel better.

I mean, we just we just announced.

Increases year over year, we have continued to elaborate on the opportunities that we're seeing and I assure you we are judged lean not only the.

Small.

Agencies, but the large agencies the commercial side of our business are very very large opportunities out there and in the numbers in excess of a 1000 units.

Potentially so.

We are doing what needs to be done to get out there and get into the market side of things for us the selling of the products and also are capable of.

As Tom.

And I've mentioned that.

Capability of tweaking devices to go after these much larger opportunities. So we're clearly.

Chasing and have made improvements on our gross margins. The overall revenue and we'll continue to try to to build and.

Mike did you ally a very profitable company.

Our next question comes from the line of Matthew Parris shareholder.

Good afternoon.

No my question.

My questions or a question that a statement.

Yeah.

I'm questioning I'm not question I've got a few questions relative to the purchase of the 71000 square foot office warehouse.

Approximately how many employees do we have in house number one number two.

Is the building subdivided will and do we have.

And the intent to either use all of it or sublease some of it and what was the logic in thinking behind purchasing that building.

Great Great question, Matt.

First of all this particular, let's just do the easy stuff, it's roughly 71000 square feet.

It probably has crystal correct me I'm wrong, maybe $25000 in office space and then the rest would be able to be utilized for manufacturing and for <unk>.

Warehousing, we do intend to we have about 100 employees local.

With some of the acquisitions that we're looking at we could continue to.

Bring them over and.

Facilitate their needs at the new facility. Another thing that's very exciting about this particular facility, it's right at the northwest corner of <unk>.

<unk> 35, and $4.35, you'd have approximately a quarter of a million cars goodbye. There every day. So again the ability to sit there and not only have a great facility that is going to be able to accommodate us and accommodate our growth.

In the coming years.

You also have a unbelievable ability to go ahead and market not only the digital ally, but the shield brands.

And some of the other things that we would be bringing into the fold of the digital ally family. So.

We're very excited about getting into this facility.

We will have us all in in one building has growth for us and the visibility of it I think we will.

Be very impressive and we will definitely when we get in and get it fixed up what do you mean.

But that is a little bit of land.

Landscaping and the ability to.

I'll put up signings and everything else, we will post that on our internet or the website and everything. So you can understand the maybe a little bit of a logic in it but we're very excited we think it'll be help us on a lot of efficiency side of things.

Okay. Just a follow up question, what was the logic or the thinking.

The building for cash versus financing given interest rates are as low as they are these days.

Yeah, I mean, it's one of those deals.

Again.

When theyre looking at our our I guess, our income statement over the last couple of years and obviously with Covid.

Banks would had to.

Hit us with something probably around the 4% to 5% interest and adjust.

We felt like that.

We didn't need to.

Didn't need to borrow the money to do it with the amount of money that amount of cash we have sitting there. So.

We did we did look into it real briefly but it was going to be a situation, where yes, Greg the assets.

Clearly worth the money, we paid for it and they would probably wanted another two or $3 million setting aside in some C D to guarantee it and were paying interest on it so.

It really started tying up more in interest.

Sure.

I guess that that we just didn't need.

Got it it makes sense and then it sounds like a good decision based on what you've said congratulations on the quarter and let's get the share price, though thank you absolutely. Thanks, Matt.

You have a follow up.

Brian.

Guys real quickly I was just going over the numbers again and I alluded to this the last conference call as well right.

Now the balance sheet as shown $58 million in cash and you guys are showing total assets of $83 million do you have a comment on your market cap only being roughly $60 million.

Yeah, I mean, Brian I did I did math, we were even talking about last night and Youre sitting there looking at the assets versus our liabilities and again you got to remember that there's those derivatives in there that just.

Don't come into play.

It hasnt below what our market cap is right now I mean, we're literally.

I guess I'd call. It our book value is higher than our market cap.

Some people just got a got to do the math and I think.

You'll see that.

They should be able to establish a floor but.

The key is going to be I think this third quarter when they start seeing some of the things that we've done you'll get to see the contributions.

<unk>.

The new acquisitions in the fourth quarter, clearly, you'll you'll get to see because we've been able to get some momentum behind these acquisitions as well. So I think that's what people want to see I've tried to give I tried to.

Pay attention to the stock and do the best we can for stock.

Stock value for our shareholders at the same time I know that at the end of the day.

The numbers will speak loudest, and so really focusing in on the running of the business correctly.

Alright, the Biggie bag that you plan on going on road shows I mean.

Right now we have one firm with coverage when you guys have had other firms the mid tiers in the past that they can give you coverage now the COVID-19 kind of.

I don't want to see in our rearview mirror, but things are opening up more you guys plan on doing your road shows that you're planning on coming to New York, because we need to get the word out more yes, absolutely we have been.

<unk> seen a lot more.

Patients coming to us to get out until the story and to do some road shows just to go round and until the story and so that is definitely on our calendar alright.

Alright, guys. Thank you very much for the follow ups. Thanks.

Thank you I want to thank everybody for joining us today, we're going to go ahead and wrap this up again, we're very excited about the second quarter and how.

We have seen things.

<unk> and momentum in the right direction, we're excited about what we see in our future and hopefully that.

Will relate in our stock price in the very near future as well. So again. Thank you guys everyone for your time today, we really appreciate it.

Talk to you soon.

This concludes today's conference call you may now disconnect.

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