Q3 2021 Kopin Corp Earnings Call
You are currently on hold for the coping Corporation third quarter 2021 earnings call. At this time, we are assembling today's audience and plan to be underway. Shortly we appreciate your patience and please remain on the line.
[music].
Yes.
Good day and welcome to the Copa <unk> Corporation third quarter 2021 earnings call. Today's conference is being recorded at this time I would like to turn the conference over to Richard Sneider, Chief Financial Officer. Please go ahead Sir.
Thank you operator.
Welcome everyone and thank you for joining us this morning.
John will begin today's call with a discussion of our strategy technology and markets.
I will then go through the third quarter results at a high level John.
I will conclude our prepared remarks, and then we'll be happy to take your questions.
I would like to remind everyone that during today's call taking place on Tuesday November <unk> 2021.
Be making forward looking statements as defined in the private Securities Litigation Reform Act of $19 95.
These statements are based on the company's current expectations projections beliefs, and estimates and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those forward looking statements.
Potential risks include but are not limited to demand for our product.
By chain issues operating results of our subsidiaries market conditions and other factors discussed in our most recent annual report on Form 10-K and.
And other documents filed with the Securities and Exchange Commission.
The company undertakes no obligation to update the forward looking statements made during today's call.
With that I'll turn the call over to John.
Good morning.
And thank you all for joining us this morning.
Okay.
The stock.
It is undoubtedly very interesting a few weeks, but <unk>.
Yes.
Facebook came out with the Facebook rape and smart glass products.
And then last week.
Facebook changed its corporate name to matter.
But the coming back of Lewis well.
We are of course heavy plates suite is well for quite some time.
However.
I will first focus on our Q3 update.
As we do we have so many great advances in this quarter.
Okay.
But would be happy to take questions on.
Thank you Louis.
During our Q&A session.
We are very pleased with our strong positive results.
With revenues, increasing 14% year to year.
Reflecting particularly strong growth in.
Industrial product revenues and customer.
And that development activities.
Which pose.
Year over year growth.
65%.
And 60% respectively.
This quarter.
Well, it's a nice straight quarter of <unk>.
Year to year growth.
As another reference.
Revenue grew about 24% in the past three quarters year to year.
We feel very good about position in the market.
And that ability to.
To continue our strong performance.
We are on track with our defense development program.
In the second quarter 2021.
We mentioned that to poke development programs and to low rate initial production.
In the third quarter risk.
We will receive them order for one of these programs.
The jaw effect targeting system all jets.
More details on that in a moment.
Okay.
We spent another program to <unk>.
Into low rate production.
Within the next few months.
If this occurs.
It will be our fifth production program.
In addition.
We continue to have I guess Andrew.
And robust type.
Pipeline of defense programs in development.
Which will further fuel our revenue growth in the coming years.
Let me give you some additional detail on a few of that growth program.
And market areas.
Thus.
The FWS I program.
We announced during our second quarter call.
It will reduce shipment of eye pieces what.
The FWS site thermal weapon sight program.
While we work with that customer.
To develop better processes.
Increased production rates.
I am pleased to report.
Did you see improvement activities has gone very well.
We are now ramping production.
And with respect towards the highest.
<unk> is shipping rate for this program in the fourth quarter.
In addition.
We expect to receive a significant new order.
Slot FWS sight eyepiece is Shelley.
Is it really behind it.
The FWS I thermal weapon sight.
Users via high precision.
<unk> six or eight optical module.
Using our cyber displays.
Custom designed sufficient.
Sophisticated turnkey optics.
He's optics have some glass element incorporated.
As we discussed in the last earning call.
A new invention.
All plastic <unk> optics for B R E M.
Applications.
Is that.
You didn't innovation.
And the achievement of coping.
It is believed to be the first all plastic <unk> optics in the world.
Producing better image quality.
Much lower cost.
Much lighter weight.
But the coming close to my AI VR headset market.
Such all plastic optics.
We will be very useful.
<unk> automated optical.
Optical inspection.
Is it needs a bright area for us.
During the third quarter.
With decided to announce a three pumps for meeting to order.
Commitment.
Yes.
Colleges technology.
Provide spatial modulators.
Well, we call S L M.
But yes, it was a series of three D.
Tomato optical inspection.
And Nebraska the series three D solder paste inspection system.
It is important to note the S L M.
Key components.
For suite, you automatic optically aspersion.
Which I referred to three D E O E Quinlan.
I'll ask <unk> and its use in this quality inspection systems.
The printed circuit board assemblies or.
Paul P C B P C P a.
The S L M projects.
Structured light.
Two the P C P H b.
Being bashed yet.
By C D E O I S P I equivalents.
Flaws or defects.
This approach enables circuit board manufacturers, who are now using two D ill add machines.
Moving to <unk>.
So as to improve PCB, a use and product quality.
While reducing waste and cost.
We have been focusing as they already asked for several years.
It is now bearing fruit.
There is a growing demand for three D. A y machines in our NIM.
Key areas.
In particular.
Manufacturers are previous circuit board for electrical electric vehicles.
I'm moving from <unk> to <unk> equivalents.
Due to the high quality standard.
Needed to achieve automobiles safety requirements.
Currently.
Koby.
And one other company.
That's just the instrument.
Equally supply.
Approximately 80% of that.
S L M market needs.
<unk> three D a lab market.
We have grown over 50% in this market in the past two years.
With accelerating growth in electric vehicles.
We believe gives us a reasonably important opportunity if a co pay in the coming years.
We plan to host the webinar.
Early next year.
To go in desk.
So just technology.
And demand for spatial light modulators.
Let's quickly review a few more recent successes.
As I just mentioned a few moments ago.
We recently announced a one on one meeting in order to.
Hi pieces.
Yes.
Which is scheduled for delivery next year.
The Justice is a portable handheld product.
Designed to rapidly get quiet.
Precisely locate it accurately engage targets were.
With precision got it.
Nations.
We are providing the program.
With a high high resolution low power.
Ruggedized Ip's.
Usually in a specialized optics and language space.
We also announced our cyber displayed.
Display.
W kill the GR.
They have been designed into the hive source, new newly lodged optical display adaptor.
The driver of a diverse and provide easy access to critical diving area of data.
Okay.
Our display office use a bright clean.
Z readable image in a small form factor.
Yeah.
This win is an example of many industrial.
And medical areas.
Looking to integrate the capability of our micro display and optics.
So at the utility is safety.
India AI VR products.
Turning to our organic light emitting diode onto activities.
We did receive approximately eight.
850000, plus.
Follow up order slapped proprietary lightning two case silicon backup wafers.
As a reminder.
Alight need to pay back plane.
I'll, let banqueting space.
2000, okay.
2048 by 20 to play out for the resolutions.
You know one inch diagonal stocks.
And clay right up 200 and trying to put.
With low power consumption.
This repeat order.
If you will.
Your line with our expectations of growing market demand.
That plane wafers for audit micro displays.
And validates our Fabless business model.
Now let me take his time a few minutes to discuss.
Equities based strategy.
It seems that early days with funding from DARPA.
Hoping as advocate strongly that micro displays.
Is that all silicon IC that play.
In fact.
Well advanced macro just space should be on Silicon IC Berkeley.
Therefore.
From the very beginning.
Oh equity space, all Silicon IC Badlands.
We believe that the worst only provided.
F C D L class micro OLED.
The future micro OLED languages space.
On Silicon back please.
In fact.
A key feature and differentiation you see in the silicon semiconductor back plane design.
Design and process those steps.
Hoping you can focus on that.
Silica semiconductor bad place for two decades.
It had been vigorously integrating so.
Sophisticated and complex IC and.
And display driving design into the back pain.
So enabled display.
But that matter a spatial modulators.
We have led out designed ice, especially design IC silicon back planes.
With either the crew christos.
They don't really electric liquid crystals.
Again, you're light emitting diodes.
Or inorganic light emitting diodes.
To me, what we trademarked S displays all chips.
L C.
We plan, we would I plan to showcase many of such deals C E.
<unk> suite.
Coming CES in January 2000, and trying to do.
In short a revenue generating business is strong.
Driving.
Matt good momentum into Q4.
Nexium.
At the same time, we're actively innovating.
So advanced ought to log your roadmap.
Paving the path for <unk>.
Future growth.
<unk> and <unk> applications.
The current market choice indicate.
Heidi and growing opportunities.
Especially aimed at met the villas VR platform.
So opinions are active.
And persistent.
Pioneer.
In fluids around this technology.
Beginning many years ago in defense.
Banking enterprise.
And now you're in consumer applications.
We are very well positioned.
To capitalize on those opportunities.
Okay.
We're looking forward to the coming in person the CES in January.
Waiting addition, tot is failing chips.
We plan to exhibit.
Many of our recent exciting developments.
Relate to <unk>, but yeah.
Interestingly.
I was asked a few days ago.
Where do we can you can show the F 35 helmet.
This is the world's most advanced production.
Helmet in the world.
As many of you know.
Fiber display is the sole sourced in the helmet.
Okay.
We would try.
Is that is most likely impossible to achieve that.
Regardless.
We have many other interesting devices show you.
So John is S E S.
Now ill turn the call to rich to review the financial details.
Thank you John.
Turning to our financial results total revenues for the third quarter ended September 25th 2021 were $10 9 million compared with $9 5 million for the third quarter of September 26 2020.
A 14% increase year over year.
Product revenue for the third quarter ended September 27, 2021 were $6 6 million compared with $6 5 million for the third quarter September 26 2020.
Our defense product revenues for the third quarter ended September 26, 2021, with $3 5 million compared with $4 8 million for the third quarter ended September 26 2020.
As John previously discussed during the third quarter, we reduced shipments of our product use in thermal weapon sights systems to a customer.
To make process enhancements, we expect to increase our shipping rates for this product in the fourth quarter.
Our industrial product revenues for the third quarter ended September 25, 2021 were $2 7 million compared with $1 7 million for the third quarter ended September 26, 2020, an approximate 65% increase.
On the strength of sales of products used in three D. Metrology equipment. The three D. A L Y that John referred to.
And it was partially offset by decline in sales of our product Skus and headsets used for applications in manufacturing distribution and public safety.
Funded research development and other revenues were $4 1 million for the third quarter ended September 25, 2021, compared with $2 6 million for the third quarter ended September 26 2020.
An approximate 60% increase year over year, primarily due to an increase in customer funded programs for U S defense.
Cost of products sold for third quarter ended September 25, 2021 were $5 1 million compared to $4 8 million for the third quarter ended September 26 2020.
Gross margins for the third quarter ended September 25, 2021, or 22% compared to 26% for the third quarter ended September 26, 2020, reflecting the manufacturing inefficiencies due to lower sales volume of our products for the FWS I program.
Regarding global supply chain issues affecting many industry we.
We have not experienced any material product shipping delays related to supply chain issues. During the first nine months of 2021, however, like most companies we are facing challenges.
The situation is very dynamic and we can turn continued to work around the issues. It presents.
Research and development expenses for third quarter, 2021 were $3 8 million compared to $2 7 million for the third quarter of 2020.
38% increase year over year.
R&D expenses for the three months ended September 26, 2021 increase as compared to three months ended.
September 26, 2020, primarily due to an increase in customer funded development programs and internal R&D expenses for OLED development.
Selling general and administrative expenses were 4 million for the third quarter of 'twenty, one compared to $3 1 million for the third quarter of 2000 22020 excuse me.
Excluding the noncash stock based cost SG&A expenses were $3 6 million for the third quarter of 2021, compared with $2 9 million for the third quarter 2020, or 25% increase.
The increase in SG&A, excluding noncash stock compensation cost was due to an increase in other compensations costs and bad debt expense.
Other income was approximately 51000 of expense for the third quarter 2021, compared to 168000 of income for the third quarter of 2020. During the three months ended September 25th 2021, we recorded 29000 of foreign currency losses.
As compared to 183000 of foreign currency gains.
For the three months ended September 26 2020.
Turning to the bottom line, our net loss attributable to the controlling interest with third quarter of 2021 was $2 1 million or two cents per share compared with a net loss to controlling interest of 957000 or one cents per share for the third quarter of 2020.
Non-GAAP net loss attributable to controlling interest for the third quarter 2021 was $1 $7 million or again, <unk> <unk> per share compared with non-GAAP loss attributable to controlling interest of 70 760000.
Or <unk> <unk> per share for the third quarter of 2020.
Yes.
Goldman's cash and marketable securities were approximately $31 7 million at September 25th 2021 as compared to $20 7 million at December 26 2020.
Net cash used in operating activities for the third quarter ended September 25th was approximately $3 5 million.
During the three months ended September 25th 2020, we sold 600000 shares of our stock under our ATM program for proceeds of approximately $4 8 million before deducting expenses paid by us of 145000.
For the nine months ended September 25th 2021 we have sold 3 million 96697 shares.
Gross proceeds of approximately $21 7 million for deducting broker expenses paid by us.
100000 pursuant to our existing and previous ATM agreement.
Third quarter amounts for depreciation and stock compensation to our attached in the table to the Q3 press release.
The amounts discussed above our current estimates and the listeners should review our Form 10-Q for the third quarter 2021.
Possible changes and of course additional disclosures.
That concludes our prepared remarks, operator, we'll now take questions.
Alright. Thank you if you would like to ask a question. Please signal by pressing star one on your telephone keypad.
Anthony Speaker phone. Please make sure your army function is turned off.
I think with which our equipment.
You can press star one to ask a question, we'll pause for just a moment to allow everyone an opportunity to ask a question.
And we'll go ahead and take our first question from Glenn Mattson with Ladenburg Thalmann.
Please go ahead.
Yes, hi, thanks for taking the questions and congrats on the quarter.
The the bounce back that you expect in the Swf's revenue do you think thats.
Is that just kind of a bounce back that makes up kind of some of the push out from Q3 and or is that you know is there a higher level of Oh.
Of of production are now that the facility that had been retooled.
Is is completed that process with just general sense of the pace of our business from that contract.
Yeah. So we are going to try making up as much of the Q3 as possible in the fourth quarter and going forward. Our overall production rates should be higher on a weekly basis.
Because of the process.
Yeah.
The better R&D revenue is that a is that a signal that you know I think John spoke to a number of defense programs that you're in is.
Is that number increasing or is it just that the scope of the work within those programs has picked up this quarter and is that do you expect that to continue for a little while or.
Some color there.
Just in this particular quarter. So we have a number of contracts that go out for an extended period of time and it was just a reflection of the amount of work that was done this quarter its done on percentage of completion basis.
<unk>.
So it's that piece of the business is somewhat lumpy.
It depends on what what to achieve in a particular quarter.
Right great.
And as far as the industrial side, a nice pick up there you mentioned that the optical inspection.
Out of the business is doing well, but that the hum.
That's where we're at.
Was offset by a little bit of weakness in headsets.
Is the you know I guess is the first trend is sustainable in the second half of it is the headset something you expect to bounce back or is that just kind of that business kind of quiet right now.
Yeah, so as it relates to the three D. A Y we do believe that is sustainable and Oh.
We've had good backlog in orders for that business right now as it relates to the headset business.
Our customers tell us they do expect that to go get stronger going forward.
Great.
Last one for me I don't know if rich for you or for John but on the meta versus stuff.
I guess, the facebooks, putting some kind of a $10 billion or so investment in this space. So obviously, they're going to be building some of the best products out there. So I guess, John but do you expect that you'd be competing to get to.
To get into those AR headsets, so to speak and then just generally speaking would.
With the pace that.
Facebook is going out or do you expect that's going to accelerate the whole industry in general and enforce other major tech players to kind of advance there.
Projects within the AR, VR space and that as well could potentially serve you guys well just some color there would be great.
It's a very good question Glenn on the matter of Us Oh no.
We have been believing I've always believed that the next generation.
Transformation is golf on that.
Cell phone into the medical as well.
We certainly cannot compete with Facebook, let's face it.
Secondly, say date.
More than 10000 people working on it.
And then but they spent a lot of time most of the activities our software applications.
As you well know.
Such a such a new platform is that.
How is that needed the most important highly needed at the.
Display and optics and.
It would be focusing on that since day, one so DARPA day they'll also believed to ask what the most important is the hardware off the highway of course software applications Act.
If Facebook vehicle at that and we are not doing that.
We will always be focusing on how to provide the best in nature.
Two you saw our smallest thoughts.
And that's exactly what defense and the enterprise guys law and we will dominate these two areas.
Hopefully, we will be providing the critical components, but the metrics in fact, it's.
It's interesting we we have trained.
The class a trademark for the <unk> class is called the meta versus glass, we actually have that trademark we are way ahead on the Memphis.
Our trade level via clauses call the method versus glass.
So I will not go into lot of details what's needed for display.
Maybe somebody will ask that that was the massive Lewis the reclaim of the displays of the opex are quite different from the Ey Argos, which we do for the F 35.
So and.
Maybe I will let other people ask questions, but it W. Chrysler very interesting and I think we're very well situated for that.
Great no. Thanks for all the color and congrats on the quarter.
Okay.
Again that is star one to ask a question. Thank you find your question have been answered you may remove yourself from the Keybanc Pac in Starkville.
Go ahead and take our next question from Cynthia Crishman with H C. Wainwright.
Please go ahead.
Hi, John Rich this is Spencer kirschman and for Kevin D D. Congrats on the quarter.
It was kind of curious to get some more thoughts on the difference between.
The class set up for components for WSI.
WSI and.
<unk> matter versus you were just talking about John.
Yeah, I think I'm in the in the case of the F 35, which is the AI glass.
What do you need is very rugged totally rugged.
Order displays for defense applications Ruggedness high precision.
And most importantly in that other cases I've got four F. 35, you also have to be very bright in the daylight.
But at night time. It is a video AI isn't camera. This is quite different okay is that say I wish that we can show the helmet.
I'm afraid that there would not be allowed to do that.
But in the case of V. So the net of the risk of loss is that different.
Many of those classes as totally immersive okay. So the way to good analogy is go to see a go to IMAX theaters.
Because we want to see a very immersive image.
<unk> current IMAX theater is very interesting because they go to see an IMAX theater.
They have a two four K project does go into the screen for Kay.
So, but if the price is not that important it's always right.
Immersive.
So he's not the brightest, but what's important is the image quality.
So what happens you need high resolution.
And you also need higher rates were high.
Hi, Nick Nick range.
If you go outside to buy TV today.
The high end TV all have these call HD or what does that mean high dynamic range. Gil gave you came picks up a dynamic range can't that's not a bit okay.
People want is high speed 120, hertz to reduce the latency and gifts to axiom for games.
So again for the better voice.
Activities, but the display do not need to be there right.
It is immersive.
But you only have the HDR 10 pits and you need to go to Hungary, and China huts.
So I think that's the most important when you're looks like display for <unk>.
The metallurgy, how high can you how fast can you go.
How many dynamic range and this is that I think that's the thing we would like to show you is it coming CES asphalt how could the images Huck was its color is it is that the key thing just I T V IMAX theater.
Second thing thought Mec of this is really the optics.
You had to get very they are seeing optics and give you a van modification because even net of those well everybody wants a huge image that IMAX theater guests.
He has already to current technology just good for optics, one use it for now lenses, which now Oculus Tuesday Lizzy.
The other one is pinkett optics.
Pick up is the I train might you see one now yeah. So one of the inventors of the pancake optics is actually going to a company.
So we always bad good in pancake optics.
Especially for defense now will use pancake optics, our consumer and we turn that all into plastic optics. So important theme for <unk> you got to have a wonderful optics to give you a huge benefit patient investing optics very lightweight.
Second one is you've got a display that gives you a fair high dynamic range very high resolution <unk> color and high speed.
So does that the thing does need yet of course they've.
Similar to hang in Yoghurt produce them in quantities.
I Hope I explained meta burst high with optics and displays.
Yeah, that's really great color really appreciate it.
Shifting gears, a little bit just curious on the number of productions that are currently in our Rep and then those that you expect to go to full rate.
<unk> production.
Either in the balance of the year or in 2002.
So we have two in production F 35, and FWS I, we had two one L. Rip we talked about one of them.
Jet and then we expect it.
In this fourth quarter in the next few weeks hopefully an award for a third and then with a little luck there all by the end of the first quarter into production at a L ripping into full production.
Okay. Thank you great color really appreciate it I'll jump back into here.
Thank you. Okay. We can go ahead and take our next question from Craig <unk> with Axiom asset management. Please go ahead.
Hey, John good quarter.
Thank you Fred you had you said you have 50% market share of the AR.
Optical inspection equipment did.
Did you say, how large that market is.
Yeah, I I want to make it clear we did I have 50% market share we have actually about 40%, Okay, where we grew about 55% in the last two years in the revenue.
The current market is still relatively small okay actually.
Is this field meetings floor remember, we would provide the space sure lot modulator.
Currently the whole market.
We have two strong players ourself. The second player is ti each one of them owns about 40% of the <unk>.
Market share.
We actually going to have a webinar coming up early next year, because I think this is a bay interesting area because as you well know.
The order books in especially in the systems right now what is the PCB maybe evenings semiconductors. They are all using two D, especially machines.
Is it the things that getting too complicated electronics.
So three D that may need it just let early right now we're seeing a very early stage.
Electric vehicles are the PCB boards are so complicated its still robust.
So we believe all of the equivalency of actually all current go to fund <unk> three D.
So the so tobacco could be very big so we could have a webinar or at least is early January maybe February to discuss the technology. The comparison, the comparative competitive oil and where its going to go at we're still studying how big the market yet.
Why is growing so fast.
Okay. Thank you as far as the path the plastic pancake optics, where would you expect that to be used first.
In the metro versus glass.
Okay and gas yeah, because it may be actually I'm, sorry, I listed two shot sorry up I apologize for that.
At the plastic plastic pancake optics as this feature.
Magnify your display may be in area Wise 30000 times. Okay. So you would take a close this then display and you look into it rollout of IMAX theater.
It's also vaccine because as you well know the optics polishing side and is that a member when volume Ventas El pen <unk>, obviously seen a company right now.
So we know how to do that and so you had to be there right.
We want the headset to be their life.
So you can wear for many hours not yet that's what came in about 15 minutes.
So this is the idea of saying all plastic pancake optics you just.
Is what everybody is looking for it for the last four years, everybody not just us.
That leaves invented first.
Are your prototypes ready for CES.
Yes.
Okay anything else you want to tell so we hope that we hope to show this not only to poll tied the Opex will hope to show.
The early tie both metabolic glass with this type of optics.
Okay. Thank.
Thank you very much.
Alright. It appears there are no further questions at this time, Mr. Shannon I would like to turn the call.
One more question and my apologies, we'll go ahead and take our next question from Patrick Metcalf with Who's a private investor. Please go ahead.
Good morning, John He sounds fantastic.
Writing times ahead, obviously.
Thank you Patrick.
My questions revolve around your hidden treasures I'd like to know how Lenovo New vision Unreal, we're looking for 2022.
On the other of the assets.
Yeah.
Pat Patrick you know in all honesty, you really should contact Lenovo and real wear and ask them.
I think I think I asked the question the answer the question a little bit differently.
Patrick Thank you for the question.
You know our company has three stool.
One one leg is the defense and enterprise business.
And that's going to say it was revenue generating.
The second facilities really.
If we invest.
In depth key components for method this glass.
Displays in the optics.
The third leg is how activities in licensing.
Spin off companies all of which were on equities.
And also as royalties and not just sell them to components that they need.
So therefore, there are bunch of companies at all.
Yeah as you know.
And so we already announced that real whereas one of them.
In fact, <unk> was one of them of course.
And solos in glass was one of them.
We just announced last year, we licensed to accompany to make surgery surgical headsets.
So is that neither one of them and so on and so on this is our third leg, we provide people just components.
Knowledge license and equities and component sales. So so yeah I think those companies, we all praying that this be successful and some of them and many other demand that's successful.
Okay, Great and John the only reason why I ask is at the end of last conference call you had made.
Made.
I mentioned to the fact that more licensing deals would potentially come. So I just was going to ask how is that effort going into 2022, you see maybe one or two more happening in 2022.
Uh huh.
We certainly are working are working pretty hard now, especially with the metal this going.
Starting going is so strong.
We expect to be more deals more.
Most of it was coming up but anyway I do think again this could be a personal CES last year that we do see yes.
So do you see them puzzle C. S is can be very interesting hopefully it will be a bullish you show your additional <unk>.
Devices that people are using now are components for a really beneficial applications not just for defense.
For some enterprise not they're using for medical.
And hopefully less sensitive consumer applications.
Okay and then one last question John Let me get this straight you have trademark.
Versus glass and pancake Opex, yes.
Pick it obviously is a registered trademark.
Pancake optics, we have a registered trademark.
Of course, cyber display or those side registered trademark.
Uh huh.
The lentivirus is not registered yet is.
<unk> as you well know registered has gone through a different process.
Rigorous process.
And of course.
So so many of US yes, with our trademark.
Okay now know why you sound like you're 37, so good luck congratulations.
<unk> found incredible yeah.
Yeah, I think I think they're very interesting couple of years [laughter].
Have a good one.
Right now it appears there are no further questions at this time, Mr. Dan I would like to turn the conference back to you for any additional or closing remarks.
No. Thank you very much we hope to talk to you again, the next earning call, but do come to see us just yet thank you.
This concludes today's call. Thank you all for your participation you may now disconnect.
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Yeah.
Okay.
Yes.
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Okay.