Q4 2022 Crown Electrokinetics Corp. Earnings and Nine-Month Stub Period Call
Good day, everyone and welcome to Crown elect Electrokinetics Corporation earnings Conference call for the stub period nine months ended December 31, 2021 at this time participants are in a listen only mode.
Good day, everyone, and welcome to Crown Electrokinetics Corporation Earnings Conference Call for the stub period, nine months ended, December 31, 2021. At this time, participants are in a listen-only mode. A question-and-answer session will follow the management
A question and answer session will follow the management's remarks.
This conference call is being recorded.
A replay of today's call will be available on the Investor Relations section of Crown's website and will remain posted there for the next 30 minutes.
A replay of today's call will be available on the Investor Relations section of crowds website and will remain posted there for the next 30 days.
Speaker Change: I will now hand the call over to Henryk Dubrowski for introductions and the reading of the Safe Harbor Statement.
I'll now hand, the call over to Henrik Dobrowski for introductions and the reading of the Safe Harbor statement. Please go ahead.
Henryk Dabrasky: Thank you, prayer. Good morning, everyone. Welcome to crowns earning call for the nine months stop period ended December 31 2021.
Thank you Brad good morning, everyone and welcome to Crown starting cold for the nine months stub period, ending December 31 2021.
Speaker Change: We have today's call are Doug Croxell, Crambs Chief Executive Officer and Chairman and Joel Crox, Chief Financial Officer.
We're not today's call are dump trucks, all cramps, Chief Executive Officer, and Chairman and Joe, Perhaps Chief Financial Officer.
Speaker Change: Before we begin, I would like to remind you that today's call contains certain forward-looking statements from our management made within the meaning of Section 278 of the Securities Act of 1933 as amended and Section 21E of the Securities and Exchange Act of 1934 as amended.
Before we begin I would like to remind you that today's call contains certain forward looking statements from our management made within the meaning of section 27 eight of the Securities Act of 1933 as amended and section 21 E of the Securities and Exchange Act of 1934 as amended.
Speaker Change: Words such as may, should, projects, expects, intends, plans, believes, anticipates, hopes, estimates, and variations of such words and similar expressions are intended to identify forward-looking states.
Words, such as May should projects expects intends plans believes anticipates hopes estimates and variations of such words and similar expressions are intended to identify forward looking statements.
Speaker Change: The statements are subject to numerous conditions, many of which are beyond the control of the company, including those set forth in the risk factors section of the company's annual report on foreign thinking or thinking.
Statements are subject to numerous conditions, many of which are beyond the control of the company, including those set forth in the risk factors section of the company's annual report on Form 10-K or 10.
Speaker Change: for the fiscal year and stop period, including the nine months and their December 31st, 2021. Filed with the SEC. Copies of these documents are available on the SEC's website at www.sec.gov.
For the fiscal year and stop period, including the nine months ended December 31st 2021.
One filed with the SEC copies of these documents are available on the SEC's website at Www U S C dot dot.
Speaker Change: Actual results may differ materially from those expressed or implied by such forward-looking statements. The company undertakes no obligation to update these statements or revisions or changes after the date of this call, except as required by law.
Actual results may differ materially from those expressed or implied by such forward looking statements. The company undertakes no obligation to update these statements for revisions or changes after the date of this call except as required by law.
Speaker Change: Now, at this time, it is my pleasure to introduce Doug Kruxel, CEO and Chairman of CRAM. Mr. Kruxel, please go ahead.
Now at this time it is my pleasure to introduce Doug trucks, all CEO and chairman of crime.
Please go ahead.
Dog Crutso: All right. Thank you, Henrik. So thanks, everyone, for joining us today. I've got about five pages of prepared remarks. I hate reading from a script, so I'm going to do my best to not do that.
Alright, Thank you Henrik so.
Thanks, everyone for joining us today I've got about five pages of prepared remarks, I hate reading from a script, so I'm going to do my best to not do that.
Dog Crutso: I'm going to start off by just reviewing Brown's mission, which is to provide an affordable smart glass solution that will enable its customers to reduce energy and in turn lower carbon emissions.
I'm going to start off by just viewing.
<unk> mission, which is to provide an affordable smart glasses solution to get they'll enable its customers to reduce energy and in turn lower carbon emissions.
Dog Crutso: Our first product, as many of you know, is called Smart Window Insert, powered by Dynamic Tint. It's an affordable solar-powered insert which does not require hard wiring and can be easily installed into the interior side of existing windows in commercial office building.
Our first product as many of you know it's called the smart window insert powered by dynamic 10.
It's an affordable solar powered insert which does not require hard wiring and can be easily installed into the interior side of existing windows in commercial office buildings are tent, which we call dynamic tenant is.
Dog Crutso: Our tent, which we call Dynamic Tent, is a pigment-based fin film, which was originally developed by HP.
He is a pigment based thin film was originally developed by HP.
Dog Crutso: And it's based on our proprietary and patent protected electrokinetic technology.
And it's based on our proprietary and patent protected electrokinetic technology.
Dog Crutso: So at Crown we recognize that commercial buildings are inefficient. They're inefficient insulators because glass is an inefficient material in which to insulate.
So at Crown, we recognize the commercial buildings are inefficient, they're inefficient insulators, because glasses and inefficient material in which to insulate.
Dog Crutso: So Crown is solving a big problem for a very large addressable market.
So crown is solving a big problem for a very large addressable market.
Our smart window insert easily installed into a building's existing window frame, leaving the existing window intact, we do not touch the existing window.
Dog Crutso: Our smart window insert easily installs into a building's existing window frame, leaving the existing window intact. We do not touch the existing window. This transforms a building's single pane window into an energy efficient dual pane smart window. Once installed, the insert is powered by a solar strip. We do not hardwire to the building's electrical system.
This transforms a building single pane window into an energy efficient dual paying smart window. Once installed the <unk> is powered by a solar strip, we do not hard wired to the building's electrical system.
Dog Crutso: This is a big deal. There are no other inserts that have smart glass technology associated with them. And if they did, they would be hardwired into the building.
This is a big deal there are no other inserts that have smart glass technology associated with them and if they did they would be hard wired into the building.
Our insert absorbs sunlight, thereby reducing the amount of HVAC usage, leading to lower electricity costs and a smaller carbon footprint. Our insert also provides an insulated benefit by effectively adding a second pain to the building's existing single pane, allowing heat and Eric.
Dog Crutso: Our insert absorbs sunlight, thereby reducing the amount of HVAC usage.
Dog Crutso: leading to lower electricity costs and a smaller carbon footprint. Our insert also provides an insulative benefit by effectively adding a second pane to the building's existing single pane, allowing heat and air conditioning to stay in the building more efficiently than the existing single pane window. Also a big deal, which means our product is not only important in warm weather climates, but in climates like New York City, where they actually experience...
Conditioning to stay in the building more efficiently than the existing single pane window also a big deal, which means our product is not only important in.
Warm weather climates, but in climates, like New York City, where they actually experiences.
Dog Crutso: The commercial building sector is under increasing pressure from shareholders, tenants, and regulators to reduce their HVAC energy consumption, and more importantly, reduce their carbon emissions. We're hitting the market at a really interesting time. Luck is a good thing to have on your side.
The commercial building sector is under increasing pressure from shareholders tenants and regulators to reduce their HVAC energy consumption and more importantly, reduce their carbon emissions were hitting the market at a really interesting time luck is a good thing to have on your side.
Dog Crutso: We're the only smart glass retrofit product in the market. Crown's smart window insert is priced comparatively with high-end window blinds. We're not expensive electrochromic windows. We're priced slightly above a solar shade, which is pretty prevalent in most offices.
We are the only smart glass retrofit product in the market Crown smart window insert is priced comparatively with high end window blinds, we're not expensive electrochromic windows were priced slightly above a solar shade, which is pretty prevalent and most office buildings.
Dog Crutso: Okay, so what I'd like to do now is review our product development and our product release schedule.
Okay. So what I'd like to do now is review our product development and our product release schedule.
Dog Crutso: This summer, we'll be manufacturing and delivering our first-generation smart window insert. That smart window insert will be comprised of 12-inch strips of our dynamic tent film. Today, we cannot make film wide enough to cover the entire insert. So, we can make, however, 12-inch strips of our film, and we're making it defect-free today.
This summer, we will be manufacturing and delivering our first generation smart window insert that smart window answer it will be comprised of 12 inch strips of our dynamic tent film.
We cannot make film wide enough to cover the entire insert. So we can make however, 12 inch strips of our film and we're making it defect free two day. So those 12 inch strips will be placed across a single piece of glass.
Dog Crutso: So those 12-inch strips will be placed across a single piece of glass.
Dog Crutso: Our frame will encompass that piece of glass.
Our framework.
Will encompass that piece of glass.
Dog Crutso: are of a solar strip that faces exterior in the building.
Our solar strip the faces exterior in the building.
Dog Crutso: capturing the sunlight to charge a lithium-ion battery, the lithium-ion power source for allowing the user to transition the film from clear to dark on demand.
Captured between the unlike to charge a lithium ion battery the lithium ion power source for allowing the user to transition to film from clear clear to dark on demand. Each office that has our inserts will have a handheld controller.
Dog Crutso: Each office that has our inserts will have a handheld controller that allows the occupant of that office to easily control the insert. Each insert will be gathering performance and usage data. We will effectively be creating an epidural layer to the building, and that layer will be gathering data. That data will be important to help not only Crown monitor the performance of our insert, but help the building manage their HVAC.
Allows the occupant of that office to easily control the insert each answer will be gathering performance and usage data, we will effectively be creating an epidural layer to the building and that layer. We will be gathering data that data will be important to help not only crown monitor the performance of our <unk>.
But helped to building manage their HVAC or inserts are easily installed and will not require any fasteners for installation and.
Dog Crutso: Our inserts are easily installed and will not require any fasteners for installation.
Dog Crutso: And each insert is powered by the sun's energy through the solar strip.
In each answer is powered by the Sun's energy through the solar strip or.
Dog Crutso: Our product is highly sustainable and, again, does not require any hard wiring to the building's electrical system.
Our product is highly sustainable and again does not require any hard wiring to the building's electrical system.
We will have a limited run in the first generation insert to be sold and distributed re customers Metro space missions Hudson Pacific and recently announced Brandywine Realty Trust those stores have a total of 281 buildings, we will strategically place those inserts and a handful of buildings owned by our customers.
Dog Crutso: We'll have a limited run of the first generation insert to be sold and distributed to three customers, Metro Spaces, Hudson Pacific, and recently announced Brandywine Realty Trust. Those customers have a total of 281 buildings.
Dog Crutso: We will strategically place those inserts in a handful of buildings owned by our customers. We'll get feedback and performance. We'll look at the design and the usage, and we'll use that iterative approach with our customer to help develop our second-generation smart window insert with their feedback.
We will get feedback and performance.
We'll look at the design and the usage and we will use that that iterative approach with our customer to help develop our second generation smart window answer with their feedback.
Dog Crutso: The second generation product, again, first generation product is coming out this summer.
The second generation products again first generation product is coming out this summer.
Dog Crutso: second-generation product will be a single piece of Dynamic Tint, replacing the 12-inch strip.
Generation product will be a single piece of dynamic 10, replacing the 12 inch strips, we expect that there'll be new features that will be incorporated into the second generation product, including the following potential upgrades increased data gathering, including external weather information amount of sunlight internal temperature.
Dog Crutso: We expect that there will be new features that will be incorporated into the second generation product.
Dog Crutso: including the following potential upgrades. Increased data gathering, including external weather information, amount of sunlight, internal temperatures, placement of the sun in the sky during the day, whether someone is in or not in their office.
Placement of the Sun in the Sky during the day, whether someone is in or not in their office. The second generation and Sir it can be controlled by either the same handheld device or through an app downloaded to a smart device like a phone or iPad we.
Dog Crutso: The second generation insert can be controlled by either the same handheld device or through an app downloaded to a smart device like a phone or an iPad.
Dog Crutso: we expect it will be able to produce significantly more second-generation inserts as compared to the limited run of the first generation, and I'm going to get into that next. So for a manufacturing update, one year ago at this time, for those of you who were shareholders and a part of our IPO, one year ago at this time, we actually had a very different strategy.
We expect that we'll be able to produce significantly more second generation inserts as compared to the limited rounded the first generation and maybe get into that next so from a for a manufacturing update one year ago. At this time for those of you who are shareholders and are part of our IPO one year ago. At this time, we actually had a.
Very different strategy Crown was two <unk>.
Dog Crutso: produce our film in our R&D lab in Corvallis on our proto-production tool and then to teach our contract manufacturing partners, we have three at the time.
Produce our film and our R&D lab in Corvallis on our protocol Duction tool and then to teach our contract manufacturing partners. We have three at a time.
Dog Crutso: to develop and build our film in their facility.
To develop and build their our film in their facility.
Obviously, that's not happening today.
Dog Crutso: COVID and business disruption and delayed product launches by our products, our manufacturing partners, I should say, on their own products caused us to start down a path to vertically previously planned outsourced manufacturing.
Covid and business direction and delayed product launches by our products, our manufacturing partners I should say on our own prime products caused us to step down a path to vertically previously planned outsourced manufacturing.
Dog Crutso: I'm thrilled to tell you that today Crown is able to manufacture our own film and will do so in our Corvallis and Salem, Oregon facility.
I'm thrilled to tell you that today crown is able to manufacture our own film and we will do so in our Corvallis and Salem, Oregon facilities.
Dog Crutso: I cannot understate the importance of what we've achieved in less than one year.
I cannot understate the importance of what we've achieved in less than one year.
Dog Crutso: We will increase our margins and protect our intellectual property by manufacturing our own film. We now control our own destiny.
We will incur.
Increase our margins and protect our intellectual property by manufacturing our own film, we now control our own destiny.
We're currently producing our film at a six inch width and defect free in our Corvallis R&D lab, we're working towards producing our film at 12 inch defect free which would be the basis of our first generation smart window insert this summer.
Dog Crutso: We're currently producing our film at a 6-inch width and defect-free in our Corvallis R&D lab. We're working towards producing our film at 12-inch defect-free, which will be the basis of our first-generation smart window insert this summer. We've also developed a technique that will allow us to produce our film up to 72-inch width, which is wide enough to satisfy the commercial building market. Let me read that again.
We've also developed a technique that will allow us to produce our film.
Up to 72 inch width, which is wide enough to satisfy the commercial building market, let me read that again.
Dog Crutso: We've also developed a technique internally owned by us.
We've also developed a technique internally owned by us.
Dog Crutso: that will allow us to produce our film up to 72-inch width, which is plenty wide to satisfy the commercial building market. We call this technique stitching, and have filed and will continue to file the proper protections on this invention.
It will allow us to produce our film up to 72 inch width, which is plenty wide to satisfy the commercial building market.
We call. This technique stitching and have filed and will continue to file the proper protections on this invention our team of engineers and one in particular have given crown the opportunity to significantly advance our time to market with wide.
Dog Crutso: Our team of engineers, and one in particular, have given Crown the opportunity to significantly advance our time to market with wide width film.
With film.
Dog Crutso: Allowing us to approach the commercial market with the product that can have an immediate impact on the building's cost savings and carbon footprint.
Allowing us to approach the commercial market with a product that can have an immediate impact on our buildings cost savings and carbon footprint.
Dog Crutso: Last summer we embarked upon a process to design a purpose built line.
Last summer, we embarked upon a process to design a purpose built line.
Dog Crutso: single line performing all the necessary steps in making our electrokinetic film.
Single line, performing all of the necessary steps and making our electric kinetic film.
Dog Crutso: The conclusion of that process has provided us with a partner that will build our first purpose-built, roll-the-roll manufacturing of our film in any width from 12 inches up to 72 inches.
Conclusion of that process has provided us with a partner.
That will build our first.
Purpose built roll to roll manufacturing our film in any with from 12 inches up to 72 inches.
Dog Crutso: This new production line, once up and running, at capacity, we believe will produce annualized revenues of between $110 million and $120 million, and has the potential to generate EBITDA of approximately $20 million, so one line
This new production line once up and running at capacity, we believe will produce annualized revenues of between 110 and $120 million and has the potential to generate EBITDA of approximately $20 million. So one line.
Dog Crutso: in one facility with assembly should be able to produce between $110 and $120 million annually and the ability to produce about $20 million of
In one facility with assembly should be able to produce between $110 million to $120 million annually and the ability to produce above.
About $20 million of EBITDA annually.
Dog Crutso: We're in active discussions with a number of funding sources that we believe can provide non-diluted funding for our capital expenditures. These are hard assets that we're purchasing. There's a lot of equipment financing out there. We've been in discussions and we'll continue discussions. As soon as we have something to report, we will report.
We're in active discussions with a number of funding sources that we believe can provide non dilutive funding for our capital expenditures and these are hard assets that were purchasing there's a lot of equipment financing out there we've been in discussions and we'll continue discussions as soon as we have something to report we will report.
Dog Crutso: Environmental, social, and governance. ESG is a big trend to talk about these days. We obviously are actively pursuing our participation as a key ESG supplier to U.S.-based office buildings. The retrofitting that we do for these buildings allow them to start checking the boxes and providing meaningful response to the ESG requirements that they all have.
Environmental social and governance ESG Big trends talk about these days, we obviously are actively pursuing.
Our participation as a key ESG supplier to U S. Based office buildings. The retrofitting that we do for these buildings allow them to start checking the boxes and providing meaningful response to the ESG requirements that they all have.
Dog Crutso: Our goal is to help building owners reduce their energy use and reduce their carbon footprint.
Our goal is to help building owners reduce their energy use and reduce their carbon footprint crown.
Dog Crutso: Crown Smart 1-2 Insert can do that immediately for all existing buildings.
Crown Smart window answer can do that immediately for all existing buildings.
Let's talk about customers briefly.
Dog Crutso: As previously stated, we have a new customer that we added to our growing list. Brandywine is our largest customer today with over 170 buildings.
Previously stated we have a new customer that we added to our growing list Brandywine is our largest.
Largest customer to date with over 170 building.
Dog Crutso: Their buildings are primarily in Philadelphia where they're headquartered. They all see an Austin taxi.
The buildings are primarily in Philadelphia, where their headquarter.
And Austin, Texas, we will be delivering our first generation and search all three customers. This summer to specific locations as determined by crown and our customers will continue to work with other prospective customers in our sales pipeline and hope to have further announcements in the coming quarters.
Dog Crutso: We'll be delivering our first-generation insert to all three customers this summer to specific locations as determined by Crown and our customers.
Dog Crutso: We'll continue to work with other prospective customers in our sales pipeline and hope to have further announcements in the coming quarter.
Dog Crutso: should be noted that we are experiencing interests not only from US based building owners, but also from commercial property owners in Europe , Middle East, and Asia.
It should be noted that we are experiencing interest not only from U S. Based building owners, but also from commercial property owners in Europe , Middle East and Asia.
Dog Crutso: Additionally, other markets, such as residential and transportation, also continue to show interest.
Additionally, other markets such as residential and transportation also continued to show interest.
Dog Crutso: In due course, we will address those market opportunities, but for the near term, we're very focused on providing our product to our current target customer, the US office building market.
In due course, we will address those market opportunities, but for the near term, we're very focused on providing our products to our current target customer the U S office building market.
Alright intellectual property.
Dog Crutso: You know intellectual property and specifically patents are really difficult asset class for public markets to properly value We believe the value of our intangible assets. We're not fully understood by the public market for that purpose We engaged in an independent organ and we engaged an independent organization To provide us with an updated assessment of our US patents and trade fees
Intellectual property and specifically patents are really difficult asset class for public markets to properly value.
We believe the value of our intangible assets were not fully understood by the public market for that purpose, we engaged an independent and we engaged an independent organization to provide us with an updated assessment of our U S patents and trade secrets. We're pleased with these results, which we will announce after this earnings call.
Dog Crutso: We're pleased with these results, which we will announce after this earnings call. The estimated new value should favorably impact our valuation and provide additional assurances as we look to finance Crown's expansion.
The estimated new value should favorably impact our valuation and provide additional assurances as we look to finance crowns expansion.
Dog Crutso: All right, those are my prepared remarks. I look forward to taking some questions from everyone afterwards. Right now, I'm going to hand the call over to Joel.
Alright, those are my prepared remarks, I will look forward to taking some questions from everyone. Afterwards, right now I'm going to hand, the call over to Joel.
Joel: Thank you, Doug. And good morning, everybody. First, remind our investors and the public that we have now transitioned our March fiscal year end to December in order to better align our financial and operating talents.
Thank you, Doug and good morning, everybody.
But remind our investors and the public that we have now transitioned our March fiscal year end to December in order to better align our financial and operating calendars.
Accordingly today I'll be discussing <unk> financial results for the nine months stub period ended December 31 2021.
Joel: Accordingly, today I'll be discussing Crown's financial results for the nine-month stub period ended December 31, 2021. Consistent with the MD&A section and note 13 of our 10-KT, which will be filed later today, I'll be comparing the stub period of 2021 to the same nine-month period in 2020.
Consistent with the MD&A section.
13 of our 10-K, which will be filed later today.
I'll be comparing the stub period of 2021 for the same nine month period in 2020.
The results.
Joel: The company's net loss for the nine months ended December 31, 2021, was $16.5 million. This included $8.7 million of non-cash stock-based compensation expense.
The company's net loss for the nine months ended December 31, 2021 was $16 $5 million. This included $8 7 million of noncash stock based compensation expense.
Joel: This was $3.6 million lower than the 21.1 million recorded during the nine months ended December 31, 2020, which included $16.5 million of non-cash compensation and financing.
This was $3 $6 million lower than the $21 1 million recorded during the nine months ended December 31 2020.
Which included $16 5 million of noncash compensation and financing expenses.
Total operating expenses for the nine months was $16 9 million, which included $8 7 million of noncash stock based comp.
Joel: Total operating expenses for the nine months was $16.9 million, which included $8.7 million of non-cash stock-based comp.
Excluding the impact of.
Joel: including the impact of the stock-based compensation offering expenses months last year.
Okay.
Stock based compensation.
<unk> expenses last year.
Joel: This was driven by 2.9 million increase in payroll as we ramped up in-house manufacturing and other functional capabilities.
This is driven by $2 9 million increase in payroll as we ramped up in house manufacturing.
Functional capabilities.
Joel: It was a $1.2 million increase in thing in professional fees and a $1 million increase in operating overheads.
It was a $1 $2 million increase in king and professional fees and $1 million increase in operating overheads.
Joel: Other income was $0.4 million, which related to a PPP loan forgiveness, and this compared to $6 million of expense last year, which primarily related to debt conversion.
Other income was $4 million, which related to a PPP loan forgiveness.
And this compared to $6 million of expense last year, which primarily related to that conversion.
Joel: net cash used for the nine months was 9.2 million with 8.6 million deployed for operations and 0.8 million investment in patents and equipment.
Net cash used for the nine months was $9 2 million was $8 6 million deployed for operations and $8 million investment in patents and equipment.
Joel: As of December 31, 2021, our cash and cash equivalents with 6.1 million dollars.
As of December 31, 2021, our cash and cash equivalents was $6 1 million.
Joel: And we've also recently agreed terms with the financial institution for a $10 million standing letter of credit, which will provide access to operational financing if required for the next two years.
And we've also recently agreed with the financial institution for $10 million outstanding letter of credit.
Will provide access to operational financing if required for the next two years.
Looking ahead to 2022.
Joel: Looking ahead to 2022, we will seek organisational streamlining and operational efficiency.
We will seek organization streamlining and operational efficiencies and we will continue to pursue the optimal least dilutive financing solutions with which to fund our capital requirements and to strengthen crowds balance sheet.
Joel: and will continue to pursue the optimal lease diluted financing solutions with which to fund our capital requirements and to strengthen Crown's balance sheet. That concludes our prepared remarks. Now we'll open the
That concludes our prepared remarks.
Now we will open the call for any questions operator.
Thank you and at this time, we will be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue.
Speaker Change: Thank you, and at this time, we will be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue.
Star two if you would like to remove your question from the queue.
Speaker Change: participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
One moment, please while we poll for questions.
Our first question comes from the line of Jeffrey Campbell with Alliance Global Partners. Please proceed with your question.
Speaker Change: Our first question comes from the line of Jeffrey Kemp with Alliance Global Partners. Please, we'll see you with that.
Hi, Doug first of all I wanted to say congratulations on the Brandywine.
Jeffrey Campbe: Hi, Doug. First of all, I want to say congratulations on the brandy one. It's great to see that.
Great to see that are.
Geographic diversification.
Jeffrey Campbe: Regarding the move, regarding the move to vertical integration, I thought the stronger IP protection was an interesting point. I just wondered when did IP theft become a concern, assuming that was...
Regarding the move.
Regarding the merits of vertical integration I thought the stronger IP protection that was an interesting point I just wondered.
When does it become a concern assuming that was what you were alluding to.
Speaker Change: Well, when, you know, a lot of our intellectual property is not just in the product, but the way we manufacture and process, so a lot of that you'd have to disclose to your contract manufacturing partner in order to teach them how to do it, you know, you put the assurances in place.
Well.
A lot of our intellectual property is not just the product, but the way we manufacture in process. So a lot of that you'd have to disclose to your contract manufacturing partner in order to teach them how to do it.
You put the assurances in place.
Speaker Change: in a written agreement so that they treat your intellectual property with the same respect that you do, but it's still a risk.
On a written agreement so that they treat your intellectual property with the same respect that you do but it's still a risk there's still people that come and go from that employer.
Speaker Change: There's still people that come and go from that employer and, you know, you still open yourselves up.
You Sue opening yourselves up.
Speaker Change: to a risk. And so by vertically integrating, which to be honest, it was the only move on the chessboard.
Two of risk and so by vertically integrating which to be honest. It was the only move on the chessboard I don't want to break our arms patting ourselves on the back when when the whole world went to Hell during Covid and all of our manufacturing partners told us that it would be two or three years before they could start focusing on producing our own film I didn't think that the investor.
Speaker Change: I don't want to break our arms patting ourselves on the back when the whole world went to hell during COVID and all of our manufacturing partners told us that it would be two or three years before they could start focusing on producing our own film.
Speaker Change: I didn't think that the investors would want us to sit on our hands for two or three years and wait for those manufacturers to come around, so we really didn't have a choice.
Would want us to sit on our hands for two or three years and wait for those manufacturers to come around so we really didn't have a choice. So.
Speaker Change: But one of the results of doing everything yourself is that you keep
But one of the results of doing everything yourself is that you keep all your trade secrets, and how you process things to yourself and so its definitely an added benefit of vertically integrating along with the other ones that we had identified better better time to market better control over your product and your quality better.
Speaker Change: all your trade secrets and how you process things to yourself and so it's it's definitely in an added benefit of vertically integrating along with the other ones that we identified. Better time to market, better control over your product and your quality.
Speaker Change: better gross margins because you're not sharing anything with the contract manufacturer.
Our gross margins because you are not sharing anything with the contract manufacturer.
Right, Okay, no I appreciate that color.
Speaker Change: Right. Okay. No, I appreciate that color. When do you expect to be able to provide this 72 inch wide film that you discussed this morning?
When do you expect to be able to provide this 72 inch wide zone that you discussed this morning.
Speaker Change: Yeah, that's a great question. We we know the exact amount of time it will take from once we place the order to when the line will be built. Let me just kind of give you a little bit of color on that. If we place the order on April 1st.
Yes, that's a great question, we know the exact amount of time it will take from once we placed the order to win the line will be built let me just kind of give you a little bit of color on that.
If we place the order on April one.
Speaker Change: We're not, but if we did, it would take about a month and a half to finish the design phase. And then it would take about five and a half months.
But if we did.
It would take about a month and a half to finish the design phase.
And then it would take about five five months to.
To actually see.
Speaker Change: build the line. And for the most part, the design phase has been locked down. There's a period in which they're starting to order the equipment to build the line. So by the end of about seven months, they've built the line.
Build the line and for the most part the design phase has been locked down.
There is a period in which they are starting to order the equipment to build the line. So by the end of about seven months.
Built the line.
Speaker Change: And they actually build it in their facility and then they run our film to our quality control and our specifications. We approve that film and that line. We understand exactly how it works, what the finished product looks like. They then actually disassemble it.
And they actually build it in their facility and then they run our film to our quality control and our specifications, we approve that film and that line, we understand exactly how it works what the finished product looks like they then actually disassemble the line ship it to R. R.
Speaker Change: ship it to our Salem, Oregon facility, reassemble it, get it up and running again to the same quality control and specs that they had achieved in their facility. That entire process is right around a 10-month period, plus or minus a month.
Salem, Oregon facility reassemble, it get it up and running again to the same quality control inspection. They had achieved in their facility that entire process is right around <unk>.
10 months period, plus or minus a month. So if we started April one with.
Speaker Change: So if we started April 1 with the order in the design phase, we would be concluded sometime in the December .
With the order in the design phase we would be concluded.
Sometime in the December .
Speaker Change: with product, you know, up and running either in December or January kind of timeframe. So that's kind of the schedule and they're really good at doing what they do. They've been doing it for decades and, you know, we went through a pretty long process to settle with these guys as our partners.
With product up and running either in December or January kind of timeframe. So that's that's kind of that's the schedule and they're really good at doing what they do they've been doing it for decades, and we went through a pretty long process to settle with this is these guys as our partner.
Okay, and you said, you're not actually going to start on April the first so.
Speaker Change: Okay, and you said you're not actually going to start on April the first, so what's sort of the gating item to decide when you're actually going to start?
What's sort of the gating item to decide when you're actually going to start to do it.
Thing called money.
Speaker Change: thing called money. So we're out raising the capital. We're going to go out. Look, this is a hard asset.
So we're out raising the capital we're going to go out and look this is all hard assets.
We did our IP valuation to help support.
Speaker Change: We did our IP valuation to help support collateral, so we've been in the market speaking to effectively credit and debt funds and equipment financing funds to get the capital to acquire this. And we're well down the path with the number. We hope to have something. We wanted to have something to announce for this call, but we hope to have something ready to announce within the next 30 days.
Collateral so we've been in the market.
Peaking to effectively credit and debt funds.
Equipment financing funds.
To get the capital to acquire this and we're well down the path with a number we should we hope to have something we wanted to have something to announce for this call.
But we hope to have something ready to announce within the next 30 days.
Speaker Change: Okay, and the last question I'll ask, and it's kind of on the same idea, but I want to just make sure I understand it. You said that when this, when the smoke clears and all this is done, you'll be able to make film from 12 inches to 72 inches. I guess what I'm, what I'm wondering is. Does that imply any number between 12 and 72. Are possible and.
Okay and the last question I'll ask is kind of on the same idea, but I wanted to make sure I understand it you said that one when the <unk>.
<unk> and all of this is done you'll be able to make film from 12 inches to 72 inches I guess, what I'm. What I'm wondering is does that imply any number between 12 and 72.
Possible and maybe day.
Speaker Change: Is it more likely in the real world that there's certain discreet widths that you expect will be ordered over and over again?
Is it more likely in the real world that there are certain discrete.
<unk>.
We will be ordered over and over again.
What might those be.
Yes, it's such a great question, yes, the way that we've designed the line because it will be able to run 12 inch or 13 inch or 23 inch for 36 inch or 50 inch or 72 inch whatever size in between 12% and 72 and the importance of that Jeffrey is that we have to do this thing called edge ceiling. So we have to cut a little.
Speaker Change: Yeah, such a great question. Yeah, the way that we've designed the line is it will be able to run 12 inch or 13 inch or 23 inch or 36 inch or 50 inch or 72 inch, whatever size in between 12 and 72. And the importance of that, Jeffrey, is that we have to do this thing called edge ceiling. So we have to cut a little bit of the film on each side.
A film on each side.
Speaker Change: The minimal amount of film you cut on each side increases your yield, it's less wasted film. So, the way we design this line is with yield.
The minimal amount of film you cut on each site increases your yield it's less wasted film so the way we design this sign.
Your line is with.
You killed.
Speaker Change: with the best yield, able to control the width of the film that you run through the machine based on.
With the best yield being able to control the width of the film that you run through the machine based on the customer's order you actually increase your yield and should be able to maintain a pretty high yield.
Speaker Change: the customer's order, you actually increase your yield and should be able to maintain a pretty high yield going forward. So it's got ramifications not only for the ability to customize, but it's got positive effects on our P&L.
Going forward. So it's got ramifications not only for the ability to customize but it's got positive effects on our P&L.
Speaker Change: as well. So, hopefully, and to your question about, you know, will we see like, you know, modes of sizes that will be more prevalent? Probably. I mean, if you look at an office building, generally speaking, the width and the height of office windows are similar, you know, between 45 and 60 inches in width and either eight.
As well so.
Hopefully and as to your question about what.
Will we see like modes of sizes that it will be.
More prevalent probably I mean, if you look at it on office building, but in general really speaking the width and the height.
Of office Windows similar.
Between 45, and 60 inches in width and either eight.
Speaker Change: either five feet, eight feet or 10 feet in height, generally speaking, obviously not a hard and fast rule. And we haven't really seen any windows wider than 72 inches. So we feel that that 72 inch width will allow us to capture 90 plus percent of the U.S. office building market. I mean, there's always like atrium glass and the one-off window that's really, really large. Those just won't be our customers, unfortunately.
There are five feet eight theater 10 feet in height generally speaking, obviously not a hard fast rule.
And we haven't really seen any windows wider.
Then 72 inches. So we feel that that 72 inch with will allow us to capture 90 plus percent of the U S office building market I mean, theres always like atrium glass and the one off window. This really really large those just won't be our customers. Unfortunately.
Alright.
Speaker Change: Okay, well, thanks for all the color and congratulations again.
Okay, well, thanks for all the color and congratulations again.
Thank you Geoffrey.
Speaker Change: Our next question comes from the line of Jerry Sweeney with Roth Capital. Please proceed with your question.
Our next question comes from the line of Gerry Sweeney with Roth Capital. Please proceed with your question.
Hey, good morning, Doug and Joel Thanks for taking my call.
Sure.
Jerry Sweeney: Doug, you mentioned, I think you said you're producing a 6-inch film today in the Corvallis facility, but version, I'll call it 1.0, is going to be the 12-inch film. What's, where are you in that move to a 12-inch film? What steps do you have to go through to get there? And then, follow-up to that would be, are there any big challenges or differences in making that jump, or is this the same process?
Doug You mentioned I think you said youre producing a six inch film today in the core balance facility, but version called one point O is going to be the 12 inch film.
Where are you in that moved to 12 inch film what steps do you have to go through to get there and then.
Follow up to that would be are there any big challenges are differences and taking that job for us. It's the same process.
Jerry Sweeney: It's the same process. It's just a slightly wider stamp. It's a 12-inch stamp that will run on our current production tool in Corvallis. We should have that stamp ready to go month, month and a half.
It's the same process, it's just a slightly wider stamp into 12 inch stance.
That will run on our current production tool in Corvallis.
We should have that stamp ready to go.
Month month and a half.
Jerry Sweeney: So it's the same process we're going through right now.
So.
It's the same process, we're going through right now.
Speaker Change: Got it. And what's the capacity at the Corvallis? So, I mean, that's going to be the first facility, then you have the purpose-built line, as you call. But how much capacity does the Corvallis facility have?
Got it and what's the capacity at the courthouse. So I mean, that's going to be the first facility then you have the.
The purpose built line, that's your call, but how much capacity, that's the core balance facility half.
Speaker Change: Yeah, so the Corvallis facility, we believe.
Yes, so weak so the corvallis facility, we believe.
Speaker Change: could produce between 2,500 and 3,000 inserts a month.
Could produce between 20 503000 inserts a month not out of the gate. We could we don't think were going to do that many what we really want to do with our first generation product is produced enough to get two or three buildings with Hudson and when.
Speaker Change: not out of the gate. We could. We don't think we're going to do that many. What we really want to do with our first generation product is produce enough.
Speaker Change: to get, you know, two or three buildings with Hudson and with Brandywine, deploy in a set number of floors, and really learn from the product.
With Brandywine deploy in a set number of floors and really learn from the product engage with our customer the tenant our customer the REIT I should say and learning what they liked don't like what they want to see change and then put the product put our insert in front of their customer the tenants in.
Speaker Change: engage with our customer, the tenant, our customer, the REIT, I should say, in learning what they like, don't like, what they want to see changed, and then put the product, put our insert in front of their customer, the tenant, and learn from the tenant what they like, what they don't like, what they'd like to see changed. And it's that iterative process that we'll embark upon this summer and the fall that will guide what the product in winter.
Learn from the tenant what they like what they don't like what they like to see changed and its that iterative process since it will embark upon.
On the summer and the fall that will guide what the product winter.
Speaker Change: So we expect these are not going to be huge numbers. We expect that we'll be able to sell between 800 and 1,000, fairly easily, frankly, and that that will be enough of our product in the market to get a good.
So we.
We expect these are not going to be huge numbers, we expect that we'll be able to sell between 801000.
Fairly easily frankly and that will be enough.
Enough of our product in the market to get a good a good data set to really guide towards generation too. So.
Speaker Change: a good data set to really guide towards generation 2.0.
Speaker Change: Generation 2.0 will be able to one line and will be able to produce around inserts on a monthly basis. I mean we won't start off sprinting, we'll start off walking and we'll slowly get to that, you know, we'll get to that number over time. But, you know, the capacity we have with our current proto production tool pales in comparison to what the capacity will be with the purpose bill on.
Duration, ciudadano will be able to one line and we'll be able to produce around inserts on a monthly basis I mean that we won't start off sprinting, we'll start off walking it will slow as we get to that we'll get to that number over time.
But the.
The capacity, we have with our current protocol production tool.
Sales in comparison to what the capacity will be with the purpose built one.
Got it and did you say how much on a purpose built line I started my phone broke up there for a couple of seconds yes.
Speaker Change: Got it. And did you say how much on the purpose built line? I sorry, my phone broke up there for a couple seconds. Yeah, I heard that about 13,000 inserts a month.
Is that about 13000 inserts a month.
Speaker Change: Sorry, I apologize for the connection. And then what is the cost of the purpose built fund?
Got it sorry, I apologize for the connection and then what is the cost of the.
The purpose still fine.
Speaker Change: Yeah, I wasn't sure if I should put that in my prepared remarks or not, but since you asked the question, I'll answer it.
Yes, I was going to I wasn't sure if I should put that in my prepared remarks or not but since you asked the question I'll answer it.
Speaker Change: We're estimating it's somewhere between, we know the exact price, but I'm putting a little cushion on it. And so it'll be somewhere between, you know, 11 and 12 million.
We're estimating somewhere between we know the exact price, but I'm, putting a little cushion on it and so it will be somewhere between 11 and $12 million.
Got you and.
Speaker Change: Any, just a couple of little detailed questions of, you know, obviously inflations on everybody, tip of everybody's tongue. Does this impact you at all or in terms of materials, you know, costs, pricing?
Any just a couple of little detailed questions.
Inflation is on everybody's tip of everybody's time does this impact you at all or in terms of materials and all costs pricing et cetera.
Speaker Change: Not really. I mean, maybe a little bit on our PET and ITO, that's the basis of our actual film, but we haven't, we have, I mean, we've been told there might be slight price increases, but not material or meaningful at this point. If they do become so, Joel will obviously update everybody on our earnings call in May, but right now we don't see, we haven't experienced that.
Not really I mean, maybe a little bit on RPT and Ato.
That's the basis of our actual film.
But we haven't we.
Yes.
<unk> been told there might be slight pricing increases, but material or meaningful at this point if they do become so Joel will obviously.
Update everybody on our earnings call in May, but right now we don't see we havent experienced that.
Speaker Change: Gotcha. And then just final question, the IP review that you did, is this coming out today? You said after this call, so it sounds like it's imminent. And then just to confirm, that's really, some of that values the basis of you going after the non-dilutive financing.
Got you and then just final question.
Where is this coming out today, but he said after this call. So it sounds like it's imminent and then just to confirm that's really some of that values the basis of U S. Non dilutive financing.
Speaker Change: Yeah, look, we wanted to you want to, you know, when you're talking to someone who's looking at providing
Yes look we wanted to you want to you know when you are talking to someone who's looking at providing.
Providing.
Non equity based financing, which therefore would be non dilutive they want to know what kind of collateral. They have not just in the purpose built line not just in the rest of the equipment. We have in our current facility, but also the intangible assets that we have on our balance sheet balance sheet and theres a lot of value in that.
Speaker Change: non-equity-based financing, which therefore would be non-dilutive, you know, they want to know what kind of collateral they have, not just in the purpose-built line, not just in the rest of the equipment we have in our current facility, but also the intangible asset that we have on our balance sheet. And there's a lot of value in that.
Speaker Change: So, we went through that process about a month ago. We will be announcing, we'll have a press release come out tomorrow that will give a little bit more color on the conclusion of that analysis. But, you know, we were pretty pleased with the conclusion. But, yeah, it serves two purposes, to educate our investors and also to educate those potential funding sources.
So we went through that process about a month ago, we will be announcing we will have a press release come out tomorrow that will give a little bit more color on the conclusion of that analysis, but we were pretty pleased with the conclusion, yes. It serves two purposes to educate our investors and also to educate those potential funding.
Sources.
Perfect I appreciate it I'll jump back in line I'm, sorry, the connection.
Speaker Change: Perfect. I appreciate it. I'll jump back and line it. Sorry for the connection.
Okay.
Speaker Change: And our next question comes from the line of Jim McCree with Dawson James. Please proceed with your
And our next question comes from the line of Jim <unk> with Dawson James. Please proceed with your question.
Dawson James: Yeah, thank you. Good morning. I just wanted to focus a little bit on the Gen 1 products and make sure I understand correctly. So the brandywine that I'm sending and the Metro Spaces installation
Yes. Thank you good morning.
Just wanted to focus a little bit on the Gen. One products to make sure I understand it correctly, so the brandywine and.
In the metro spaces installations, all of those are going to be the gen. One product.
Dawson James: All of those are going to be the Gen 1 product with a 12-inch tank. Is that correct?
12 inch tablets is that correct.
That's correct. The first generation product, we will have 12 inch strips as opposed to the second generation product, which will have a single piece of film that now look I wouldn't say one thing Joe.
Our customer likes to 12 inch strips.
The 12 inch strips will make that on either our proto production liner or a new production line.
Dawson James: 12-inch strips. We'll make that on either our pro to production line or our new production line because it can go obviously down to 12 inches or up to 72. But the Gen 1 product will be 12-inch strips for sure.
Because it can go obviously down to 12 inches or up to 72, so but the gen. One product will be 12 inch strips for sure.
Speaker Change: And I was going to ask about that aspect of it also, Doug, so.
Okay.
I'm going to ask about that aspect of it also Doug so.
Speaker Change: Once you have the Gen 2 line up in place, you can still use the Gen 1 line.
Once you have the Gen. Two line up in place you can still use the gen. One line.
Speaker Change: where special projects are additional capacity or something like that.
We can get additional projects or additional capacity here.
Yes.
Okay.
Yeah, we can sense of.
I am sorry go ahead Jim.
No that was my question.
Speaker Change: No, that was my question. Go ahead. Okay. Yeah, we can definitely still use our proto-production line that we're using now for in the future. It was really intended to be a proto-production line, not a production line, but we can still certainly use it. We can also use our Gen 2 line to make film as narrow as possible.
Okay, Yes, we can we can definitely still use.
Our product production line that we're using now for in the future.
It was really intended to be a proto production line not a production line, but we can still certainly use it.
Can also use our gen. Two line to make film is as narrow as is.
Speaker Change: Um, and then just to give you a sense of, you know, kind of capacity.
And then just to give you a sense of.
Kind of capacity that Gen. Two line, if we run that line at three shifts five days, a week, which we clearly intend to do that.
Speaker Change: That Gen 2 line, if we run that line at three shifts,
Speaker Change: five days a week, which we clearly intend to do, that line will be producing film and assembling inserts throughout 2023 and 2024 just to handle our current announced customers.
That line will be producing film and assembling.
Inserts throughout 2023, and 2024 just to handle our current and announced.
Announced customers so.
No.
Speaker Change: I doubt this will be buy and build and there's some economies of scale in the second line that we would not have to pay for since we've already done that in the first line. We actually think our second line will be about 60 to 70 percent.
Doubtless there'll be buy and build.
And there is some economies of scale in the second line that we would not have to.
We would not have to pay for us since we've already done that in the first line. We actually think our second line will be about 60% to 70% of the cost of the first line and still produce the exact same.
Speaker Change: cost of the first line and still produce the exact same amount of film. So, but from a capacity standpoint, yeah, we can use our proto production line in Corvallis going, you know, in the future if need be.
Amount of film so but from a capacity standpoint, yes, we can use our our proto production line in Corvallis going in the future if need be.
Speaker Change: Great. Thank you. And Joel, can you talk about operating expenses going forward, how they compare to what you've just done in the December quarter?
That's great. Thank you and Joel can you talk about operating expenses going forward.
How they compare to what you've just done in December .
The summer quarter.
Yes.
We went through a period.
Joel: really expanding the organization to cater to the in-house.
Really expanding the organization to Takeda to the in house.
Joel: capabilities that we've been successful in achieving, part of that is to make sure that
Kansas entities that we have.
I mean successful festival.
And achieving.
Where we've been.
Part of that is too.
Yes.
Manage the <unk>.
Joel: The multi-organization is optimal for the go-forward, and we would anticipate reporting in the next quarter reduced on a monthly basis.
Yes.
Yeah.
<unk>.
Optimal for the Gulfport.
And we.
We would anticipate reporting in the next quarter are reduced.
<unk>.
On a monthly basis.
Okay.
Speaker Change: Okay. That's helpful. All right. Thanks a lot guys. Appreciate it. Thanks Jim.
That's helpful. All right. Thanks, a lot guys I appreciate it.
Thanks, Jim.
And I see no further questions in the queue at this time I would like to turn the call back over to Mr. Doug <unk>, CEO and chairman for closing remarks.
Speaker Change: And I see no further questions in the queue. At this time, I'd like to turn the call back over to Mr. Doug Croxall, CEO and Chairman, for closing remarks.
Thank you operator.
Just a couple of things so I actually love doing earnings calls I know a lot of Ceos don't like it I know a lot of public companies don't like to do it I love It I love to brag about our company, especially the team of people that work at Crown, what what we've achieved what we're going to achieve.
Doug Croxel: couple of things. So I actually love doing earnings calls. I know a lot of CEOs don't like it. I know a lot of public companies don't like to do it. I love it. I love to brag about our company, especially the team of people that work that crown. What we've achieved, what we're going to achieve is really nothing short of a miracle. And I love working with them, and I love watching them do what they do, and they're very good at what they do.
There is really nothing short of a miracle.
And I love working with them and I love watching them do what they do and they are very good at what they do.
Doug Croxel: You know, my wife and I do this thing with our kids when we have dinner, which used to be every single night. Now, I've got two teenagers and we have fewer and fewer family dinners, unfortunately, but we do this thing called roses and thorns. And you go around the table and you say the best thing that happened to you that day, obviously the rose and the worst thing that happened to you that day.
You know my wife, and I do this thing with our kids when we have dinner.
It used to be every single night, I've got two teenagers and have fewer and fewer family dinners. Unfortunately, but.
But we do this thing called Roses, and Thorns and you go around the table and you say the best thing that happened to you that day, obviously, the Roes and the worst thing that happened to you that day.
Doug Croxel: And it's really interesting to hear how kids classify the best thing or the worst thing. And I kind of thought about that as I was heading into the office this morning to do this earnings call. And for me, for the last year, my thorn for the last year is obviously our stock price. I hate it. I wish I could snap my fingers and make it much higher. I wish there was something I could do to affect it directly. There's simply not.
And it's really interesting to hear how kids classify the best thing are the worst thing.
And I kind of thought about that as I was heading into the office. This morning to do this earnings call and for me for the last year My Thorne for the last year is obviously, our stock price I hate it I wish I could snap my fingers and make it much higher.
I wish there was something I could do to affect it directly there is simply not.
Doug Croxel: I don't control when wars break out. I, unfortunately, don't control inflation or monetary policy. And I know that it's.
Don't control when wars breakout I, Unfortunately don't control inflation or monetary policy.
And I know that it's it's happening everywhere and I don't want that to be an excuse for why our stock prices, where it is what I do control, though which is my rose we do control the <unk>.
Doug Croxel: happening everywhere and I don't want that to be an excuse for why our stock price is where it is.
Doug Croxel: What I do control though, which is my rows, we do control the input.
Inputs.
Doug Croxel: that affect that stock price. We control how hard we in a given day. We control the passion with which we approach our job.
That effect that stock price, we control, how how hard we in a given day.
We control the passion with which we approach our job.
Doug Croxel: We control how smart we are and how hard we work in the lab to invent things that make this product real.
We control how smart we are and how hard we work in the lab to invent things that make this product real.
And I'm very thankful and my Rose is that we vertically integrated in this company, we actually control our own destiny and I can't tell you how good that so by controlling the inputs, we will eventually control that output.
Doug Croxel: And I'm very thankful, and my rose is that we vertically integrated this company. We actually control our own destiny, and I can't tell you how good that is. So by controlling the inputs, we will eventually control that output. And that thorn, hopefully, very shortly, will become a rose for all of us.
Thorn hope fully very shortly we'll become a rose for all of us.
Speaker Change: I appreciate all, and if there's any questions, please feel free to email or call. I look forward to talking to all of you in the future in our next quarterly call, which will be in May. Thank you very much.
I.
Jade I'll, then if theres any questions. Please.
Please feel free to email or call and look forward to talking to all of you in the future in our next quarterly call, which will be in May.
You very much.
Speaker Change: And thank you for participating on today's conference call. We look forward to keeping you updated on advancements.
And thank you for participating on today's conference call. We look forward to keeping you updated on advancements of our business.
Speaker Change: ? ? ? ? ? ? ? ? ?
[music].
Okay.
Yes.
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