Q4 2021 cbdMD Inc Earnings Call
But as long as you have a nice night sleep prior to driving a golf cart, you're totally fine and finally, we're going to talk about the CVD M D gummies.
This is by far one of the easiest ways to take a daily CBD regimen. It's also really great for recovery and inflammation as well our gummies like all of our other products do contain our superior broad spectrum CBD completely vegan non GMO and Theyre also infused rather than COVID-19.
Our infused gummies better yes, infused gummies are a lot better when it comes to creating a daily regimen for a CBD product you want to make sure that you know exactly how many milligrams are in that one gummy versus coated products you end up losing a lot of it at the bottom of the bottle what flavors do they come in our gummies coming a delicious variety.
Tropical strawberry Orange and raspberry all in one jar.
So the real question is how good are they.
Well.
Pretty good.
Yes.
This is my favorite product to use after practicing.
So there you have it through unmatched product innovation CVD M. D has become the most trusted CBD brand for golfers, whether you're a pro on the tour for an amateur weekend golfer. Our products are designed specifically to help you recover faster and get back on the core so we can keep playing the game that.
We all love.
Uh huh.
Good afternoon, and welcome to CBD MD Inks September 30th 2021 fourth quarter and fiscal year 2021 earnings call and update.
This afternoon, the company issued a press release that provided an overview of its fourth quarter and fiscal year 2021 results.
Which followed the filing of its annual report on Form 10-K todays conference call is being recorded and will be available online along with our earnings press release, covering our financial results and non-GAAP presentation at CBD M D dotcom and accordance with CBD Mds retention policies.
All participants on this call will be in a listen only mode. The call will be followed by a question and answer session. At this time I would now like to turn the conference over to Ronen Kennedy.
As Chief Financial Officer, and Chief Operating Officer Ronen. Please go ahead.
Thank you Kate and thank you all for joining the <unk> September 32021 fourth quarter and fiscal year 2021 earnings call and update on the call today, we have our chairman and co CEO Marty assumed crest as well as Dr. Civil Swift, our vice President of scientific and regulatory affairs following safe.
Harbor statement, Marty will provide an overview of our business. The Dr. Swift will provide an update on the current regulatory climate for CBD as well as an update from our CBD AMD Therapeutics Division and finally I'll provide a summary of the quarterly financial results. Following that we'll open the call up for questions.
We'd like to remind everyone that various remarks about future expectations plans and prospects constitute forward looking statements for purposes of Safe Harbor provisions under the private Securities Litigation Reform Act of 1995, <unk> cautions that these forward looking statements are subject to risks and uncertainties that may cause our actual results to <unk>.
For materially from those indicated including risks described in the company's annual report on Form 10-K for the year ended September 32021, and our other filings with the SEC all of which can be reviewed on the company's website at www Dot CVD M D dot com or on the SEC's website at.
VW SEC Gov.
Any forward looking statements made on this conference call speak only as of today's date.
Friday December 17th and CVD <unk> does not intend to update any of these forward looking statements to reflect events and circumstances that would occur. After today's date, except as may be required by federal securities laws with that I'd like to turn the call over to <unk>, Chairman and co CEO Marty <unk>.
Thank you very much ronen and good after noon everyone. We appreciate you joining us today and appreciate your understanding for yesterday's technical delay.
Next week will be our three year anniversary of our company entering the CBD industry with the acquisition of the cure based development the owner of our flagship brands CVD M D.
It's also the three year anniversary of the passage of the farm Bill, which decriminalized CBD in the U S.
Three years ago, we were an unknown startup brands competing against thousands of other CBD brands in 2019, our first year in the CBD business. We grew very quickly to become one of the top 20 CBD brands in America and.
In 2020, our second year in the CBD business. Despite the Covid pandemic. We grew again this time by over 77%.
Now as we finish our third year, we are firmly positioned at the top of the CBD industry with our three leading brands.
According to the Breakfield group, a leading industry analytics firm CBD industry today is approximately a $4 billion to $5 billion market and it's broken down into three groups. The first group is made up of the top 20, CBD brands and they represent approximately 19%.
The U S CBD market with CBD Mds market share representing approximately one 3% of the total U S CBD market.
The second group is the pharma drug group, which is represented by one main player jazz pharmaceuticals, and their FDA approved epileptic seizure reduction drug epic dialects, and they alone control, 14% of the entire market.
The third group, which is the vast majority of the U S CBD market.
Made up of over 2000, smaller brands, which represent 67% of the entire U S CBD market.
Compare this to a more mature industry such as the energy drinks with a top five established players control 65% of the market.
D V D M D like.
Like the overall industry grew significantly in 2019 and 2020.
This year according to the bright field group the U S. CBD market experienced its most challenging year with year over year growth rates expected to be nearly flat at two 5%.
Despite this anemic industry grow CBD M. D was able to outpace the industry and we grew net sales by 6% and gross sales by over 10% from 2020.
We were able to maintain our product pricing.
Firm up our product purchasing which resulted in an increase to our gross profit margin to a record high of 67% in fiscal 2021 from 63% in 2020.
Slower than anticipated sales in the second half of our fiscal year, our increased marketing costs in the first half of our fiscal year, which have now been reduced.
Combined with several product delays, which were caused by supply chain disruptions.
As well as set up costs for new distribution channels.
With our investment in the Therapeutics Division resulted in a GAAP operating loss for the fiscal 2021 of $19 6 million.
While we are now seeing a return and consumer demand as we enter our fiscal 2022 year and we are optimistic the calendar 2022 will return to a higher sales growth rates as new products reach our customers and distribution channels become available.
We're withdrawing our previously announced sales guidance for the quarter ending December 31 2021.
The question before US is what will be the future of the CBD industry in the next three years, what roles will innovation regulation and consolidation play.
The Bright-field group estimates the CBD industry will grow at a healthy rate of 21% in 2022, and then nearly double by the end of 2024.
And the next three years, we believe that new regulations, which will be promulgated by regulatory authorities, which will have a dramatic effect on many of the 2000 smaller CBD brands.
They will be unable to meet new best practice regulations.
And these new regulations and safeguards are needed in our industry.
There continues to be significant consumer product confusion.
Proper guardrails in the CBD industry will allow trusted safe and compliant brands to fill the growing demand.
Marketing and distribution channels, which up until now have been closed to CBD brands should open which will in turn allow greater access to new consumers.
This natural evolutionary cycle has been witnessed and countless other industries.
We believe the 2022 represents the beginning of a watershed phase in the CBD industry.
We're relatively flu select CVD companies.
Who currently own well established brands and have the vision the resources and the infrastructure will gain a larger market share of an even larger total addressable market or Tam.
With our team of seasoned industry veterans.
Our strong balance sheet, and our three powerful and leading CBD brands. We believe CVD M. D is positioned very well as we enter into this new phase of industry growth and consolidation.
Our three goals.
Our one to continue to outpace overall industry growth.
To increase.
Our share.
Of the total addressable market and three to achieve positive adjusted EBITDA.
And of course, it goes without saying.
Our mission.
That we always focus on is to bring the highest quality CBD products.
To our customers.
We believe these goals can be achieved with the launch of new innovative products.
As a multiyear recipient of product of the year Awards.
D. M. D has regularly been recognized for outstanding new products.
One example of a new product is our CBD MD botanical line that was relaunched this past Monday and it's generated excitement from a number of new national accounts.
We plan to increase our U S b to B wholesale and distribution channels now that the brick and mortar stores are starting to recover from the pandemic, especially in the food drug and mass channel.
We recruited consumer products veteran Dave Johnson should become our senior Vice President of business development to lead our SDM sales effort under the direction of our executive management.
We plan.
To expand.
Into more international markets as registration regulation and compliance become clear.
We are currently selling to over 30 international markets and we are registering are registering our products in several major markets such as the U K Central America, Brazil and Japan.
We are also seeing some of our best selling categories start to expand as more state regulators allow the sale of Ingestible.
We have built <unk> brand on the back of our innovative marketing efforts.
We recently hired Matt Koeppen, as our new Chief Marketing Officer, and he is re invigorating and realigning our marketing strategy under the direction of our executive management with incredible opportunities for 2022.
The brand recognition, we have built through our sponsorships, which we believe is the best in class and we plan to leverage those sponsorships, which we believe will result in more rapid expansion of our retail footprint.
We have already started new activations with our industry, leading partnerships with iconic brands crossfit and Bellator as well as the others and you'll be hearing much more about those plans coming to life very soon.
We are in a unique position to secure co branding efforts with non CBD established brands and expand marketing and sales opportunity with global sports organizations as our brands continue to lead the market in brand awareness and social media.
Reach.
We continue to explore potential accretive M&A opportunities such as the purchase of direct CBD online.
Our online marketplace.
We continue to obtain official certification that strengthen our brands appeal, such as Paw CBD certification from the NYSE or National Animal supplement Council, a nonprofit group committed to protecting and enhancing the health of companion animals throughout the.
Our country.
He has dedicated itself to safety and quality and the animal supplement space in the United States identifying and certifying only the best quality products for animals.
Having the NASD certification is a pivotal step to access mass retail distribution as we believe such certification is a gating requirement for several retailers in this segment of the CBD category.
Finally.
We are committed to the progress at our CBD M D Therapeutics division and providing the necessary resources to ensure its success.
And with that.
My pleasure to now turn the call over to Doctor Civil Swift, one of our managing directors at <unk> Therapeutics and the Vice President.
Our science and regulatory affairs at C. B D M D D.
Doctor Swift was formerly the associate director for research and strategy at the Fda's office of dietary supplements program.
I will now provide an important regulatory update Dr.
Doctor Swift. Please go ahead.
Thank you Marty.
And it's a pleasure to be able to talk with everyone on the call today.
In January of 2021 D V D. M. D recruited me with a clear mandate to accelerate the already robust science program and initiate public interaction with the FDA with the ultimate goal of filing regulatory submissions.
No mistake.
CBD industry is being held back by inefficient and unresolved regulations. My former employer that result in major barriers in such areas as banking.
Yeah, and most importantly mass distribution, we have seen this quagmire effect, even basically basic partnership would have nothing to do with our business.
He's arbitrary decisions are based on the Fda's ongoing migration to act like a responsible regulatory agency.
But same resistance are responsible for launching a reasonable solution has led to the federal government with holding access to potential health care products for the American public that are formulated with CBD and other cannabinoid.
Our belief is these products are safe and effective.
A classic case of the government getting in the way of a reasonable solution.
Here's how C. B D M D. I was planning on tackling muscle sure Liam.
We intend to continue to lead the industry with robust compliance program. This year, we've announced partnerships with leading universities, Colorado State University of South Carolina, and the University of Mississippi regarded as an F D. A center of excellence the.
A study with Colorado State is exploring the ability of our proprietary cannabinoid blend.
Pain, and inflammation and arthritic dogs, including a unique Glenn Gabbard cannabinoid and commonly used NSAID drugs.
Herman if theres greater ethical thing to explore with further drug development.
Positive results in dog are also indicative of the same response in humans.
This study may provide data and creating further drug discovery for human products.
At the University of South Carolina, we've initiated a human preclinical studies that will not only provide data to support the efficacy of our products for pain inflammation sleep.
The study is also designed to provide additional support for the safety profile of our proprietary broad spectrum blend.
We believe the work with on that well identify new cannabinoid with therapeutic potential.
It can be patented which we believe have tremendous benefit to our consumers.
We will also explore the use of these cannabinoid with other botanical ingredients to discover possible formulations with <unk>.
<unk> functional needs our commitment to advancing the science of cannabinoid products by demonstrating the safety and efficacy of our current products.
While identifying novel cannabinoid and proprietary plan ensures we will be the leaders on the next generation of cannabinoid formulations.
The body of thought safety data, we have compiled to date.
We need to generate gives us the confidence to take a more aggressive regulatory approach as we look to 2022.
<unk> analyzed landscape and assess the likelihood that the FDA will provide a regulatory pathway for CBD.
Seeing no indication that they will act on their own.
Numerous partisan and bipartisan bills have been proposed this year. However, they have yet to result in legislative action.
Therefore, we believe the most effective path forward going to require advocacy and public interactions with the agency.
Last week, we requested requested a pre submission meeting with the FDA to discuss the quality and safety data and our dossier agency officials and you're off the food out of safety and also the dietary supplement programs. We are evaluating both the N V I N and self affirmed gras pathways and we will be discussing both with the example, this is the.
First of several meetings, we plan to hold with the agency on this topic.
We use the feedback from our first meeting with Walmart.
Former decisions regarding which type of submission it will submit on a proprietary broad spectrum Glenn.
Anticipate additional regulatory submissions to support the safety of novel Cannabinoid plant.
Thank you and now I will turn it back over to Ron and Kennedy, our Chief financial and Chief operating Officer Ronen.
Thank you civil on a GAAP basis total net sales for the fourth quarter of fiscal 2020, one for $9 8 million or 16% increase from prior year's fourth quarter physical toll.
For our fiscal year end September 32021, audited net sales totaled 45, $44 5 million, a 6% increase compared to $41 9 million for fiscal 2020.
Quarterly e-commerce or direct to consumer business generated sales of $7 3 million in the quarter of fiscal 2021, well. This is a 15% year over year quarterly decrease for the fiscal year ended 2021 E. Commerce generated $32 9 million of net sales compared to $35 million for the comparative prior fiscal year.
Or an 8% increase.
E Commerce represented 74% of our total net sales before for both the fourth quarter and the fiscal year ended 2021.
Our wholesale business generated $2 5 million of net sales for the fourth quarter of fiscal 2021 down 18% as compared to $3 1 million for the comparative quarter and fiscal 2020.
For the fiscal year ended September 30 of 2021, and 2020, our wholesale business generated $11 6 million and $11 4 million respectively from net sales.
POS sales saw a strong increase during the year and generated $5 7 million for 2021, the $26 seven increase from prior year as we were optimistic about the potential with this strength.
Our GAAP gross profit remains strong as a percent of net sales came in at 59% for the fourth quarter of fiscal 2021 after accounting for some onetime packaging write offs for regulatory labeling changes as well as other year end adjustments. This compares to 54% for the comparative prior fiscal year.
Quarterly periods for the fiscal year ended September 30 of 2021, and 2020 gross profit was 67% and 63% respectively. As a percentage of total net sales we expect to maintain gross profit margins in the mid sixties range when factoring in the sales mix with a recently acquired business.
Our operating expenses for the fourth quarter of fiscal 2021 totaled $12 7 million, which was up from $10 9 million as compared to the prior year.
Operating expenses increased 70, 17% from the prior fiscal quarter, mainly due to the $1 3 million increase in advertising marketing and sponsorship spend.
Other contributing factors were $470000 increase in compensation.
567, 560000 increase in noncash stock expense and net reduction in other expenses of over 400000 for the fiscal year ended September 32021, operating expenses increased to $49 6 million from $43 9 million and the comparative fiscal year in 2020.
This increase is mainly due to the $1 3 million in compensation $1. One in stock comp increase of $2 8 million and our net advertising marketing sponsorships than a million dollars in R&D and regulatory well achieving $900000 reduction in other controllable costs overall.
Overall this resulted in a GAAP loss from operations of approximately $7 million for the fourth quarter of fiscal 2021, as compared to $4 5 million loss for the prior year period.
Sequentially operating income declined $3 million.
From the June 2021.
<unk> to the fourth quarter of 'twenty 'twenty. One this was primarily primarily attributable to $1 4 million drop in gross profit, while achieving $1 1 million net cost reductions, mostly from marketing and payroll expenses for the fiscal year ended September 32021, and 2020, our GAAP loss from.
<unk> totaled $19 6 million and $17 6 million respectively.
Our non-GAAP adjustments to operating expenses for the fourth quarter of fiscal 2021.
Included 150000, onetime accrued comp expense $1 1 million in noncash stock expense depreciation of 300000.
670000 are noncash inventory charge, resulting in a non-GAAP adjusted operating loss of $4 7 million for the fourth quarter of fiscal 2021 as compared to a $1 million non-GAAP adjusted operating loss in the fourth quarter of fiscal 2020.
The increase in non-GAAP adjusted operating loss over the prior year period is primarily attributable to the increase in operating expenses.
Sequentially, we reduced our non-GAAP adjusted operating loss by $650000 from the June 2021 quarter to the September 2021 quarter.
For fiscal 2021 our non-GAAP adjusted operating loss totaled $13 6 million.
The increase over our prior year is mainly attributable to the increase in marketing expenses.
We invested 650000 on CBD M D therapeutics and related R&D since its founding in the third quarter of fiscal 2020 one.
And we will continue to invest in C. D M D Therapeutics mission.
Other income expenses on our consolidated income statements for fiscal 2021 include $130000 non cash deferred tax gain in addition to our non cash contingent liability gain of $3 7 million relate.
Related to our December.
2018 acquisition of cure based development.
During August we issued 503275 earn out shares corresponding to the third earn out period under the terms of the acquisition of.
At the time of issuance, we booked 222000 valuation decrease and subsequently reclassified 920000 that night.
$920 million.
From a contingent liability to additional paid in capital on the consolidated balance sheet.
The remaining earn out shares will be valued at the end of the quarter ended September 32021, resulting in a non cash contingent liability gain of $3 5 million for the quarter.
The changes in the valuation of the contingent liability was primarily a result of a decrease in the market price of our common stock during the period from two $2 90 to $2.08 per share.
During the fourth quarter of 2021 we utilized approximately $7 7 million of cash the main components include.
Cash used from operations, our adjusted operating our adjusted non-GAAP operating loss of $4 7 million $1 million and paid dividends and $2 million for the purchase price of direct activity online.
We had cash and cash equivalents of $26 4 million and working capital of $29 6 million on September 30 of 2021 compared to cash and cash equivalents of approximately $14 8 million and working capital of approximately $16 million as of September 30 of 2020.
Current assets at September 30 of 2021 increased approximately 54% from September.
Here year to $36 5 million.
Primary driver of the increase in current assets was approximately $15 8 million and $15 1 million of net proceeds from our series a preferred stock offering in December of 2020 and July of 2021, respectively.
As of September 32021, the company's total current liabilities were $6 nine of which approximately.
Nearly $2 9 million as accounts payable and $2 7 million was accrued expenses. The company has approximately 168000, it's gonna have to notes equipment for manufacturing facility.
Our cash position remained strong despite a difficult second half of our fiscal 2021.
Covid and we are investing in inventory tied to new product launches as well as precautionary measures to protect against potential supply chain issues in today's business environment.
Cause men third fiscal quarter of 2021, we've made several changes to personnel and have been taking steps to reduce our quarterly operating expenses by several million dollars per quarter and realigned our marketing spend to get performance back on track and drive revenue from our core business.
Operations from our recent acquisition, where consolidated at the beginning.
Of the fiscal quarter first fiscal quarter of 2022, and we're working to maximize the synergies available from this business.
Marty previously mentioned, we invested in several growth initiatives such as the amplify foreign registrations, which we anticipate will lead to revenue opportunities during fiscal 'twenty to 'twenty two.
We remain optimistic about our new product initiatives set to launch in the coming months and coupled with a number of our initiatives. We are focused on building a ship during fiscal 2022 with that I'd like to now turn the call back over to Marty.
Well, thank you Ronan.
With that everyone I'd like to open the line up for Q&A Kate.
Thank you ladies and gentlemen, the floor is now open for questions. If you have any questions or comments you May press star one on your phone at this time, if you wish to leave the queue. You May press Star Q, We do ask that if you are listening by a speaker phone. Please pick up your handset for optimum sound quality. Once again, if you have.
Any questions or comments. Please press star one on your phone now please hold for just a moment, while we poll for questions.
Thank you. Our first question today is coming from Mike Fifer at Oppenheimer.
Your line is live you may begin.
Hi, Thanks for taking my question.
Just to dig a little deeper on the Commerce just made can you provide more color on the role of therapeutics.
The division will play in 'twenty, two and are we looking at opportunities on the dietary supplement side versus the drug side and as a follow up what potential revenue windfall as possible through these efforts. Thanks so much.
Well, thanks, Michael I appreciate the question.
I think what would be helpful is to have a civil talk about the therapeutics Division.
And the role that it plays in our overall business strategy Civil would you like to.
Respond to Michael's comments.
Absolutely. Thank you Marty.
Michael Thank you for that question. So we look at <unk> Therapeutics is a very unique opportunity to leverage our experience with dietary supplements and as were looking towards therapeutic studies and how to best design them, There's a real opportunity to design them in such a way that data can be leveraged for dietary supplement applications as well and so we've added.
We're working through this last year, we've received some significant experience.
Significant interests from other entities and how we can work together and how is that supplement knowledge in the design of some of those basic studies without preliminary data will lend itself to support.
Safety session and formulations for supplements that can also be continued further for truck applications.
And so like.
Oh God I guess, you know with that market I mean, I don't know the timeframe on you know the.
These different strategies on the therapeutics, but.
Could you talk if possible about potential revenues from this is that something in 'twenty two or is that further out how do we how should we think about that how soon can the company benefit from therapeutics.
Well I think what we're trying to initially do with therapeutics is provide the.
80 to make claims on products that currently we're not able to do and I think that drives.
Sales it drives product development, you know on our core business beyond that.
We're probably and hopefully going to see.
Our areas of development that you know we can utilize.
And we would only do that in a partnership.
With a with a third party as far as any type of of drug development is that really the business that we're in but we think the initial stage is if we can work with these universities.
And as well as other partners.
And and be able to get the kind of safety data and the kind of.
Results that we believe are out there in these studies it will really benefit our ability to market.
Not only the existing products, we have but many of the products we have in our pipeline. So.
You know I think it's something that in 2022.
We'll hopefully be able to interact with our current portfolio of products symbol and would you like to sort of maybe kind of honed down because I think that's what Michael was asking on the timing when that big and benefit.
Our existing.
Product base.
I think that we stand to benefit the beginning next year on your existing product base and that's the way that the studies are designed that money kind of against a live human.
General and immediate.
<unk> kind of claims if you'd like to me, making the areas that I highlighted in.
In my remarks.
But also could you provide safety for those other submissions and they are leading to enrolling turn combining together to start.
Incrementally increasing in out years, but we definitely anticipate next.
Next year.
Great sounds exciting I appreciate you taking my questions. Thank you. Thanks Michael.
Thank you. Our next question today is coming from Hunter Diamond. Please announce your affiliation.
Hunter Diamond with Diamond equity is my apologies. Your line is live you may begin.
Hi, everybody. Thanks for taking my call. Firstly I just wanted to say I'm, a big fan of the product.
I think the CBD products are terrific and the website development is amazing.
My question is on the preferred I just wanted to get an idea of whats been the outreach I know the deal was at $7 50, and whats caused the decline.
Ah well.
Youre correct. The last financing was done at 750 on the preferred you know I don't really comment.
On the on the stock prices.
Obviously, you know the entire cannabis sector.
It has seen a pretty dramatic sell off.
You know over the past six months and I would imagine that you know.
Both our common and preferred.
You don't have.
You know Ben.
Did you know by that.
But as far as outreach is concerned we treat them and our shareholders on on both of those the same and we provide them all.
All the same information and talk to them.
Both groups concurrently.
That's absolutely a much much appreciate and of course the company like any one can't control the stock prices and there has been secular headwinds I guess my question is generally as you know is a financial professional preferreds tend to hold up there tends to be you know maybe older people looking for income and to me the.
Yields are extremely attractive here right and no interest rate environment, and so I'm just curious you're over the next couple of months with the company.
Possibly be more proactive in going to family offices and for the preferred specifically because I think obviously the investors who did the deal myself included haven't been thrilled with it just because it's down 25% and they take two and a half years of dividend just to breakeven, but I think hopefully that's a fair.
Request or I'd just be curious your thoughts.
Well I mean, you know we are not.
I mean, where we believe that.
The.
You know a lot of the results.
The of the pricing.
As I said have been you know.
It's an industry wide.
Negative.
Well you know across the board and in this in this sector and but as far as you know contacting our.
Our shareholder base.
We certainly intend.
Intend to and continue to reach out to our shareholders both in the common and the preferred.
I think you are right I think the you know the.
The rate of dividend on the preferred where it is priced now I believe is in excess of it.
13%. So it you know I think it it.
Pretty dramatic so, but yeah, you can count on us to get out and talk about the story and and then you're going to hopefully see as we get into the beginning of January.
You know some discussion about.
New directives that we have which and ultimately drive revenue and ultimately get us closer.
You know to the positive adjusted EBITDA that were you know.
We're looking to get to.
Great Perfect day, and like I said I'm, a big fan of the company I'd noticed all the website development the points and the great marketing and I think everything the company is doing is terrific and I'm, a customer as well and so like I said I. Just think you know for the preferred investors. Obviously, you want to take care of the shareholders, who finance the company and so.
Additional outreach couldn't hurt and I think the preferred actually is it 15% yield now so to me, it's a somewhat easy product to market given the company I think is very well positioned financially.
Again, I appreciate the time and congrats on the results.
Thank you for being a customer and a shareholder I appreciate it.
Thank you we have no further questions in the queue at this time I would now like to turn the call back.
Hey, Marty for closing comments.
Well Jay Thank you to all our shareholders. Thank you very much and.
I appreciate the support and wish everybody, a wonderful and safe holidays, and a happy new year and we'll talk to you next.
Next year. Thank you so much.
Thank you ladies and gentlemen, this does conclude todays event you may disconnect at this time and have a wonderful day, we thank you for your participation.