Q4 2021 Verb Technology Company Inc Earnings Call
[music].
Good afternoon, and welcome to the full year and fourth quarter 2021 financial results Conference call for verb Technology Company, Inc.
At this time all participants are in a listen only mode. Please be advised the call is being recorded at the company's request.
On our call today are very J, cotai as CEO and some on Khan CFO .
Before we begin I'd like to remind everyone that statements made during this conference call will include forward looking statements under the Safe Harbor provisions of the private Securities Litigation Reform Act of 1095.
Which involve risks and uncertainties that can cause actual results to differ materially forward looking statements speak only as of the date. They are made except as required by law as the underlying facts and circumstances may change.
Allergy company disclaims any obligations to update these forward looking statements as well as those contained in the company's current and subsequent filings with the SEC.
I would now like to turn the call over to Rory J Cotai at CEO Rory.
Thank you moderator and thanks to everyone for joining us today for our fourth quarter and full year 2021 financial results.
Business update conference call.
They have been so many notable developments over the past year, it's really not possible within the time allotted for this call to discuss every one of them. So I'm going to cover those things that I think our shareholders are most interested in hearing about so let's so let's get started.
We are in 2022 more than two years into the decade that began with a global pandemic.
Which now seems it was it was meant to test our metal and prepares for what we now know where even more challenges that still lie ahead, including the.
The surprising market meltdown over the past four months and continued share price volatility volatility across the board and are.
Reportedly caused by the uncertainty and soaring inflation the highest.
It's been more than 40 years rising interest rates and insane war in Eastern Europe Global warming, let's add that in and now new Covid strain.
So.
Okay.
Seems like a good time to hunker down pulled back weighted out where your dreams big plans on hold and cross your fingers and hope that it all works itself out.
But not huge barb hunkering down has never been something that we've been very good at and frankly I'm not even sure I know what the heck that means in fact over the past two and a half years, we've been pushing forward not pulling back dreaming big and executing bigger and the only things we're crossing all the items of all our to do list.
As we hit one milestone after another.
Fortunately or unfortunately, I'm old enough to have lived through the market ups and downs over the past 20 plus years.
While I'm no expert I can say with complete confidence at the market always comes back always.
The companies that win or those that make sure they're well positioned to ride the crest of the comeback wave.
It will wash over you the.
The investors that when are those that identify the companies and the management teams that develop solid plans and execute solid strategies and keep moving forward through the storms.
And even if you agree that the market will come back, but you're waiting idly on the sidelines for it to happen well that's not that's not a winning Tac I don't subscribe to the philosophy that a rising tide lifts all boats. If you didn't repair the cracks in it or if you didn't put up that new sale you are going to be left at the dock. So today.
Hey, I'm going to talk about how we fixed the cracks in particular, how as promised we've reduced rather dramatically. Our total operating costs as we drive in earnest to reach cash flow positive and profitability and reduce our reliance on outside growth capital.
And I will also talk about the new cell we've raised specifically market. What many believe is the world's best end to end livestream shopping platform and what we believe will be the biggest value accretive for our shareholders and ourselves this year and beyond.
But first I want to share the 2021 results of our SaaS business. That's our suite of sales tools software designed principally for the direct sales industry that has been our bread and butter. Since it was launched in April 2019, almost almost exactly three years ago.
And at that time as a as many of you that have been part of our journey. Since then and yes, I'm, referring to our lungs to whom we remain extremely grateful well you may recall that our mission was to be the dominant player in the space to be the recognized leading provider of sell software for the direct sales industry.
Well today.
Just three years later and much to the chagrin of a few remaining wanna be competitors. We are the undisputed dominant player in the space now far ahead of the pack.
And as we continue to add cutting edge products to our suite of sales tools and phase out of our low margin non digital business. Our SaaS business has grown by double digits every year. Since then year over year and that growth has continued notwithstanding the hit many businesses have taken during the 24 months about crushing COVID-19.
Pandemic.
Looking at our 2021 performance art SaaS recurring revenue was $6 8 million up 34% over 2020 total digital revenue of which SaaS recurring revenue, which component was $8 2 million up 26% over 2020.
And notably we ended 2021 with the SaaS recurring revenue once again, representing a larger and larger percentage of our total digital revenue, 84% up from 79% in 2020.
Our focus has always been growing SaaS recurring revenue products and services and these are the metrics that we track to measure our success I would also note that we successfully reduced our low margin non digital business, another 30% I'm, sorry, 32% over last year and associated.
Costs, while we continue to wind down.
That business and yet even with that reduction total revenue, which we don't really consider an indicator of our performance is winding down the digital business was still up over 2020 at $10 5 million.
Fourth quarter, which historically is the slowest time in the direct sales space has our total digital revenue up 45% over 2020, and our SaaS recurring revenue up 47% over 2020 in fact, we set a new record in the fourth quarter for SaaS recurring revenue of more than one.
1.9 million the highest highest recognized revenue.
In the company's history for a quarter.
As I said earlier.
I believe strongly that market will be the biggest value creator for our shareholders this year and beyond however.
However in 2022, we're also anticipating meaningful revenue growth outside of market separate from market I'm, referring to meaningful growth from three principal areas of our SaaS business, our direct sales vertical life Sciences, and our new sports vertical so first and foremost on direct sales business as you know.
Last year, we released our lives with attribution and we released pulse each as add on features to our bread and butter verbs CRM sales enablement platform.
Our large enterprise customers with a lot of non U S. Based sales reps have have really been killing it with verb life.
However, during the free trial period, we offered many of our clients, we noticed slower adoption among U S based sales reps and we spent a considerable amount of time.
Analyzing the different use cases identifying needs unique to the direct sales space and brought in a new product team to respond to those needs and several months ago. We began developing what we call verb live to point out specifically for the direct sales industry.
The result is that we now have a backlog of tens of thousands of sales reps many of whom serve this beta test. This wars waiting anxiously anxiously now for the release of Herbalife to Plano, which is on track for commercial release this summer.
Upon release, we expect a large percentage of these will convert to additional subscription pain recurring revenue generating users, which we believe will dramatically increase our average revenue per user and our SaaS recurring revenue overall.
Coupled with pulse, our AI B I add on for verbs CRM. We believe this will be the biggest year in our history for our direct sales business, putting even greater distance between Berg and I would be competitors.
Separately.
As a result of recent changes we've made in our marketing outreach, we see a marked increase in opportunities in life Sciences vertical.
By the way of our mail Pro has been released and we're implementing an entirely new marketing strategy around that.
I'll be sharing more about that in upcoming news releases.
In Q4, we launched a new business unit for verb a professional sports unit built on a verb teams sales enablement platform we.
We started with the announcement of the Pittsburgh Penguins in October and since then we've built an impressive I mean, an impressive sales pipeline of professional sports teams both in the U S and in other countries, we announced the Florida Panthers last month, we announced the Phoenix SUNS. This week and many more announcements are expected and yes.
It is my expectation that there will be market and verb T V implications for the sports teams signing up to use our verb teams sales enablement platform. So stay tuned.
But before I get to market, let me share our progress on operational efficiencies that are that I talked about in our last earnings call and quantify the impact of those initiatives.
As you know I talk openly about how we ramped up rather considerably over the past two years the expenses that we've incurred associated with the development of Verbalizing attribution pulse, we're now learning and certainly market.
And we did that in order to shorten what would've otherwise been a much longer time to market for these products in and their associated revenue streams. So this is obviously not a unique strategy, though it is a bold one, especially for a company our size.
And and yes, we've taken a fair amount of heat for the pressure of the execution of this strategy is put on our share price as many investors really just couldn't see past the operating cost line in our P&L and weren't really able to wrap their heads around the additional revenue. These these initiatives could could produce.
I believe that the results of these initiatives, which will take a bit of time to be fully reflected in our P&L.
Were more than offset the short term pain, we've all endured as it is our hope and expectation that the increased revenues from these products, coupled with higher margins and vastly reduce operating costs will translate into meaningfully higher share prices and significantly greater long term value moving forward.
As those products have now begun commercial release with several more finding commercial release this summer and as their associated development costs continue to fall away as predicted we have identified very specific cost reductions that we will expect we do expect will cause our total annualized operating costs.
To be reduced by up to eight $5 million any new expenses associated with market.
We expect it will be more than offset by new market revenue.
And that's just the beginning as we've since identified many other operational efficiencies. We will begin implementing for example, we have recruited high quality marketing professionals that have implemented sweeping changes to our marketing strategies that have begun to produce substantially more qualified leads which much higher close ratio.
I was at significantly lower marketing spend in fact up to a million dollars a year lower we've also embraced a permanent work from home policy for many of our employees as we've actually seen improvements in productivity rates in many areas of the business using new management strategies, we developed.
And during the forced social distancing imposed by Covid and as a result.
We were recently able to downside or downsize, our Utah offices, resulting in significant monthly expense reductions.
So while we are indeed fortunate that there continues to be very strong interest in verb from the investment community assuring us access to capital as and when we want it.
These changes among others changes that are producing quantifiable results are the things I committed to deliver and our drive to profitability and reduced reliance on capital markets.
This is especially important as we face the uncertainties. This is crazy world throws at us each all of US every day and the impact these uncertainties place on on the capital markets.
Okay. So.
Let's talk about market, our multi vendor livestream, social shopping ecommerce platform. Unlike anything else in the market today that we believe will disrupt online shopping as we know it a platform.
Platform that represents the true convergence of entertainment and social shopping I'm thrilled thrilled with how this platform has lived up to my vision for it and I want to recognize the brilliant developers who have made this a reality and I look forward to introducing them to all of you.
Soon enough as.
As I predicted and as I now see playing out during the current soft launch I believe that not only will market being additional distribution channel for countless brands and retailers among others.
But it will likely become the sole distribution outlet for many where vendor storefront on market will replace their own websites I foresee creators looking for greater control of their content and influencers looking for better monetization opportunities and more direct engagement with their fans and followers coming to market in <unk>.
To build their base of followers on market over Youtube and other Soc.
Social media platforms.
And I can see more and more manufacturers coming to market looking to adopt a new DTC direct to consumer strategy to increase margins and profitability.
Market offers all of that and more.
And as you've heard me say countless times market is a big deal. It's the real deal and a tremendous amount of work time and money has gone into developing our go to market strategy utilizing some of the brightest talented most knowledgeable people in the world in the live shopping space.
The soft launch period, we're currently in and the festivals or the Mega events as you've heard me refer to them.
Three of them that we've been planning are all part of a highly orchestrated highly coordinated effort to ensure the maximum success of market for us and for all of you. Please.
Please bear with US please be patient believe me I know you know I know I'm. The most impatient person known to man I wanted all yesterday I want to say that heck with the rules and damned awaiting I want to share everything with all of you right now but.
[laughter].
Fortunately I surround myself with people wastewater than me, who believe in market, whose passion for what the joining the market has been and for what they believe market will become.
Yeah. They are they keep me in my unbridled exuberance in check.
But I do need to say guys.
Stop trolling my team stopped the crazy social Postop criticized and the people who are working to deliver something truly special something truly valuable for our shareholders simply because we haven't invited you went to see it yet okay. While while we continue to execute really the most effective go to market strategy, we believe.
Leave market deserves that our shareholders deserve.
Some people actually believed at the moment the platform was built and tested we should have opened it up to the public and they're upset that we haven't.
I mean look.
If you're a real shareholder who cares about the value of your investment.
Do you think it's going to make your shares more valuable to criticize the company on social media with unjustified uninformed rents come on guys.
Let us do our work, let us deliver on the promise step back Okay relax take it easy we've got this.
So before I share a few stats that I hope will shed light on some of what's going on behind the scenes at market.
Let me first reiterate.
What the market soft launch actually means for those of you that haven't seen any of the recent interviews of me or those are several other members of my team who have been asked about market during those interviews.
The soft launch is the period of time that we are actively soliciting vendors retailers brands creators and influencers among others to sell products and services a market not just those that participated in the beta tests.
So we're verifying qualifying selecting and categorizing sellers for.
For those we've already selected to be on market, we're onboarding them and assisting them in setting up their stores their e-commerce facilities their inventories the products digital assets with training them how to use the platform and we're providing coaching on how to sell that.
Not just be an influencer or make fun to watch videos had to sell okay, that's different and connecting them with professional hosts an onscreen sales coaches for those that want it.
We're actually building a stable of professional hosts says we expect many sellers will opt to pay for professional hosts to work with them during the live stream or handle the livestream selling in Thailand to ensure the highest levels of viewer engagement and sales revenue of which we get a percentage right. We want to make sure that everyone is doing.
The best they possibly can where creating video assets that will be available on market that will provide the resources for vendors to onboard themselves with little to no assistance from our staff. So we can ensure that the platform scales up much more rapidly.
We're encouraging vendors to learn how to get the most out of the platform by hosting private livestreams every week in fact, almost every day, we're encouraging them to learn how to use the multi presenter features including remote presenters how to produce professional looking livestream is using the multiple camera features among many other amazing features that.
We've built into this platform.
We're doing all of this because we want to make sure that when the public is invited in to see all of our market.
All of it they'll find and engaging consuming fun enjoyable expansive and truly unique social shopping experience that they want to come back to that they want to buy their friends to their family, where they will form trusting relationships with host and sellers as well as with other shoppers.
Where they want to spend money.
So were targeting mid summer for these festival some will take place over the course of two or more days in the categories for the three festivals or food and beverage wellness in a combined fashion and cosmetics festival. They will all be public facing and will signify the public launch of market where it all.
All of market is opened up to everyone exact dates will be sat announced as we continue to confirm the vendors that are participating in each of these categories and corresponding product inventories.
And I will say look it is possible maybe it's even likely that there will be at least one of more smaller public facing events before the festivals.
I'm not giving you dates on that yet let us let us confirm everything.
We've engaged pros I mean real pros that are managing and coordinating all of this.
The Onboarding is ongoing virtually every day at last count I am told that.
By Tomorrow, I think we'll probably have more than 100 vendors on the platform.
And we've got a list of thousands I mean, thousands that we are furiously working through we've got you know we had to repurpose people from other areas of the company we have to bring people in to go to go through this stuff because we've got a we've got to qualify. These people we got to verify that they have a real business that they're not selling things.
That we don't we don't want to have sold on market and.
So while we're going through that and working through this list and it's it's amazing how the system is growing. Please please don't submit a request to be a vendor on market unless you are a real seller with a real business not just a curious investor.
We've had more than enough of that that's really just not a productive use of our time okay. Please.
Separately.
We've been building a list of prospective shoppers.
People, who who you have I've seen the videos are following what's going on and they want to shop on market as soon as it's released to the public and at last Count I think we've had over 10000 names and that's growing daily.
So yes, there's there's big name brands that want to be part of market and no. We can't disclose any names at this time, please understand that we have.
But I want to tell you everything, but we have to respect the policies in this brands are OE jeopardize their involvement with the platform.
So anyway lastly.
Before I turn it over to our new CFO Salman Khan for more detail around our reported financial performance as well as the recent financing we secured to ensure the uninterrupted execution of our plans for market. Among other things let me, let me share two more things.
The planned acquisition I've discussed previously is still on track and will release information in a timely matter through the appropriate channels of filings. So you know that.
There are other inc.
Incredibly exciting business opportunities in the works.
And amazing new talent coming aboard that we'll disclose as.
As and when appropriate so.
Stay tuned and finally.
Among the amazing members of my team, who are unrelenting in their efforts to deliver value every day.
I want to recognize my Chief operating officer, Denise Butler for her work on our ESG initiatives and I'll work through verb for humanity, including our most recent efforts on behalf of so many people impacted by the Russian invasion of Ukraine.
And I also want to reiterate our long standing commitment to ESG initiatives as we have been one of the earliest adopters of a form or a formal ESG program among small and micro cap companies, notably we are very proud to have.
Our ESG initiatives actually recognized by NASDAQ recently, who held verb as a leader among small and micro cap companies and ESG implementation. In fact berm was the subject of a recent NASDAQ case study available on Nasdaq's site.
Plotting our ESG efforts and showcasing verbs efforts as an example.
All companies large and small can and should embrace and implement ESG policies. Okay. So with that I'll turn it over to Soma.
Thank you Laurie and good afternoon, everyone.
I'd like to review our financial performance as reported in our 10-K filed today March 31 for the year ended December 31 2021.
May reiterate and or provide more color around some of the data points, where we shared with you.
The following compares the Companys results of operations for the fiscal year 2021 with the previous year.
Total SaaS recurring revenue a component of total digital revenue was $6 8 million for the financial year 2021 up 34% over the previous year.
Total digital revenue of approximately $8 2 million was up 26% over the previous year.
SaaS recurring revenue as a percentage of total digital revenue was 84% compared with 79% of the previous year.
Total SaaS recurring revenue for the fourth quarter 2021 was over $192 million, which as already said is a new record for recurring SaaS revenue recognized in a single quarter.
And congrats to our team for making that happen and what is historically the slowest quarter indirect sales.
During the year ended December 31, 2021, we added 55, new client contracts with a guaranteed base value of $3 3 million we expect.
To generate annual recurring revenue of approximately $1 5 million from these arrangements.
Which does not include revenue that we anticipate to recognize from new and existing clients launching worldwide two point, though with attribution pulse and web learn as well as revenue, we expect from market, where TV direct mail and other as yet unannounced initiatives.
Until we completely phase out of our legacy non digital business. Our total revenue will not be a reliable indicator of our performance. Since it includes the revenue generated from both our digital business, which is growing at a record pace.
And our non digital business, which is declining.
We exit that business.
For example, the non digital business now represents only 22% of total revenue compared with 35% in 2020.
For transparency purposes. We will include total revenue and our discussion, which in 2021 was approximately $10.5 million.
I do note, however that our growth rate in total revenue over the prior year is still up 6%.
Standing the offset of the non digital business that we continue to exit.
As Rory mentioned today and in previous earnings calls, we made a conscious decision to ramp up our research and development investment.
Other related expenses in order to accelerate the time to market for several major revenue generating features and products.
These included word life attribution work CRM.
Teams pulse, our mail and market.
These increased investments are partially reflected in 2021, R&D expenses of $12 3 million compared with $7 9 million in 2020.
However, as already discussed we have begun the move from R&D more to maintenance mode or.
Many of our products, allowing us to reduce operational costs to more normalized levels.
In establishing our strategy to accelerate profitability and reduce reliance on outside capital.
<unk> implemented a series of specific cost reductions, which we expect can result in a reduction of annualized operational expenses by as much as $8 5 million.
The planned reductions began in the fourth quarter of 2021, and they will continue throughout this year.
One of the biggest reductions occurring in the latter half of this year.
Since we began this process and as I have begun my tenure here as CFO .
We have identified several areas of the business, where we can produce cost saving efficiencies, which we are in the process of quantifying.
We anticipate that these additional savings will help offset any marketing increases we expect to incur as we promote the public.
Commercial release of Arden market platform and Barb television among other things.
At December 31, 2021, we have capitalized software development costs of $4 3 million attributed to the development of market, which we expect to depreciate and costs.
Revenue over a three year period general and administrative expenses were $25 7 million an increase from the $25 million in the previous year comprised of the planned increases in labor cost as discussed previously of $2 8 million as well as certain expenses related to the acquisition of solar fire offset by.
A decrease in share based compensation of <unk> 5 billion.
The increase also includes approximately $1 1 million in marketing expenses. However, we.
We have begun implementing a top grading strict ROI approach to our marketing spend and based on the efficiencies. We are now seeing we could see that increase eliminated almost entirely by as much as $1 million annualized or time.
At December 31, 2021, total assets were $34 4 million total liabilities were $21 1 million and total stockholders' equity was $13 3 million as already mentioned earlier.
We are fortunate to be able to access the capital markets and attract high quality institutional investors on better terms than many companies our size, which speaks to the quality of our business plan execution and our management team.
On March 15, 2021, we completed a restricted stirred direct offering with a small group of institutional investors, which resulted in gross proceeds of $15 million.
It was a straight common deal in an overnight transactions that did not include any borrowings.
In August 2021, the company entered into at the market issuance sales agreement a true Securities Inc. That was terminated in October 2021.
In November 2021, the company entered into a new at the market issuance sales agreement matures that would have permitted sales of the companys common stock of up to $30 million in aggregate.
However in January 2022, due to the rapidly changing market conditions that began in December we voluntarily reduced that number from $30 million to $7 3 million and entered into a $6 3 million above the market convertible debt financing with three institutional investors at favorable terms as well as a supplemental.
Your line of credit facility for the sale and issuance of up to $50 million inclusive of fees in shares or three years.
The HELOC agreement is with two men stone capital, whose manager and general partner III L. T has been a long term investor and Barb.
As of March 25, there are $80 million 167, $1 76 shares of our common stock issued and outstanding.
Of the total number of common shares issued and outstanding.
<unk> six 6 million shares or approximately eight 3% are owned or controlled by management and the board of directors.
I'd now like to turn the call back over to the operator for Q&A.
Operator.
Thank you before we go to Q&A. Mr. <unk> do you have anything you'd like to ask Mr. <unk> remarks.
Well actually yes. Thank you.
Are there some additional information I would like to share as I.
Just received confirmation from council that I can so as Simon discussed a moment ago. We we filed an S. Three shelf registration statement last year, which we rely on in connection with the ATM, we put in place with trust as well as the $50 million Iraq, We did with three I am and the shares we had to reserve.
In connection with the $6 3 million dollar above market convertible note. We did with three I just this past January .
As Tom also mentioned, we voluntarily reduced the amount of shares available under the truest ATM.
In order to allocate them to the three I E work.
So that last $7.3 million on the truest, ATM, which we have not utilized and we are actually currently prohibited from using under the terms of the Iraq with triage.
But because we allocated all the remaining shares available under that S. Three to the Iraq.
We can't use those shares for anything else they are locked.
For use for the next three years under on the use for the HELOC only.
So accordingly, we intend to file a new S. Three shelf registration to reduce the time and expense associated with any future capital raises that we might decide to do.
Look every public company that qualifies for a shelf registration should have them.
Just prudent financial plan.
In the spirit of transparency, because I know how these things can sometimes be misinterpreted.
Wanted to make sure that that I could share that so thanks for giving me the additional opportunity to do that.
Yeah.
Operator, I'm ready I think we're already here for Q&A.
Or if you'd like to be placed in the question queue. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if he'd like to remove your question from the queue.
For participants using speaker equipment may be necessary to pick up your handset before pressing the star keys.
Once again Thats star one to be placed in the question queue.
Our first question today is coming from Ed Woo from <unk> capital. Your line is now live.
Yeah. Thanks for taking my question.
On the larger marketplace and you'd mentioned some supply chain issues with some of your Oh.
That has that improved at all.
Since the last quarter.
Yes.
We have now the way we've scheduled these events.
Let me back up and provide some context.
Last quarter last year, we were intending to showcase where we were with market.
And we had a particular vendor a couple of them that we were going to do an event with the poor.
And then shortly before the date that lumpy before we actually announced the date.
They told us that they were concerned they would not be able to meet the inventory requirements. So that was that was the end of that and I think as you may recall around that time.
It was the supply chain issues are really peaking and.
So we understood plus we're going into the holiday season, as I explained and they weren't even concerned about meeting our regular retail store allocations so anyway.
Now moving forward, that's something that we look very closely at in fact, when you heard me talk about we're qualifying vendors to be on market. One of the things that we're qualifying and verifying is that they actually have the inventory because if we have vendors go on and do a livestream event and sell a bunch of product and then they can't do.
A liver that ends up becoming a reflection on us. So we're very very cognizant of that taking precautions about that in for the big events, we've put them far enough out that these vendors guarantee us that they'll have the inventory available to meet though so anyway. Thanks for giving me the opportunity to clarify that.
Great. Thank you for answering my question and I wish you guys. Good luck.
Thank you I appreciate it.
Thank you. Our next question today is coming from Martin Saltzman from AFM investments. Your line is now live.
Well congratulations on the quarter guys.
Laurie.
My question pertains to market you said that.
Mid <unk>.
Summer.
You could possibly have three festivals you call them events festivals et cetera is it possible that you could have market opened prior to mid summer.
On a smaller scale.
And that really a smart way to open market.
You know one would think you'd want to be all in with everybody as opposed to piecemeal.
Yes, there's something your team has looked at it and you know I'm going to let you answer is this something your team has looked at and as gauged as being a smart move to get you know market out there.
Okay.
And he also asked before I start responding.
I would just say, let's let's hear what you have to say about this question I might have another.
Okay sure.
Look the the festivals are a big big big events like the big Big coming out party.
And that requires an unbelievable amount of planning and coordination and.
There's three of these things some of them are multi day so.
And when people come on at that time.
It's they're going to see something truly expansive and amazing.
So I'm very happy with how that's coming along and.
Support the strategy behind that.
Now that being said.
We have opportunities that present themselves to us virtually every week from big.
Big names big celebrities.
And we would like to try and accommodate one or more of them.
And to the extent that we're able to do that in a way that still fulfills our commitment to deliver market and presented to the world and the best possible light than we will do that that's why I said in my comments before that it's possible, maybe even likely that we might have an event.
Before that maybe even sooner than people think but it would be that kind of event.
And.
And we haven't confirmed that yet which is why haven't stated that yet but.
We are being very very thoughtful about how we introduce market to the world.
Yeah, it's hard to understand.
I understand a little bit that you could possibly open up market for certain events, and then more or less consider.
Shutting it down, let's say to a festival or three festivals come about in July lets say mid summer. It almost also seems to us I'm watching the after hours activity in your shares as soon as you mentioned that this might be a mid summer event. It just seems like all of a sudden we drifted from a dog.
We're down to 90 cents. So there is some concern out there by the street, whether it's warranted or not you know it is what it is we are what we are.
We don't want to see the shares get eviscerated, obviously, we don't want to see a reverse split and things of that sort I know that's what goes through the minds of shareholders. So you know I represent about well at least about 120 shareholders. So.
It's something that is of concern.
I think what really should be of concern to shareholders right now is that <unk>.
Market, which as I've said, it's likely to be the biggest value creator for us what should be a most concerned is that we are being extremely thoughtful about how we bring this to market and not seek to have it have us rush it out because the stock price may have dropped by 10 cents that's.
That's just not a smart strategy and anyone who feel that that is they shouldn't even be a shareholder. This is something that we are planning to deliver that will create enormous value for all of us and for those that don't appreciate that and think that we should just put it out to satisfy people, who just can't wait another another couple of months as you know.
Uh huh.
I don't have a lot of respect for that so no and I you know I think it's important that you know we support your decision in your your teams.
Feelings on it for sure you know you don't want to come out with half a loaf you want to have the whole loaf. If you will you want to look good when you're doing it sometimes you only have one chance to make a great impression right.
Who said that but I remember that.
I just wanted to ask you also you know with all of these initiatives.
We all know that you brought over Kate Ekman from QVC are there other.
New hires that are are being considered are looked at as you grow this out.
Absolutely.
We've actually identified a bunch and I mentioned in my comments that we'll be making those announcements.
Okay, well listen I applaud the quarter looking forward to the eventual opening of market I'm sure everybody else as to on the call I wish you guys. The best.
Thank you I appreciate it.
Thank you we reached end of our question and answer session I'd like to turn the floor back over to management for any further or closing comment.
So.
Look I really appreciate everyone's patience I know that.
My own excitement around market and what I know that obviously.
Most of the public doesn't know yet and division I've at board and how well it's been executed.
My it's hard for me to do.
Tamper or temper my own excitement about it and I think that sometimes that raises.
Expectations in a way that.
Maybe it's not all that helpful. Because if people.
Just wanted to see if they just wanted to see they don't care and believing we get we get peppered with these kinds of emails and text messages and social media posts pretty much every day people just want to see it.
I get it believe me I get it I really I really want to share it with all of you as soon as possible and and if I showed it to you at this moment I know that you had jaws would absolutely drop.
There's no doubt in my mind, and it's really that good but I know that we have the opportunity when we show it to the world for it to be so much more than good great like really really great. Let us do that don't be discouraged because we're taking our time and doing it thoughtfully and bringing in the right people and planning these <unk>.
So that they are as amazing as they deserve to be and you as shareholders deserve that you deserve us to think about it thoughtfully and carefully and make sure that this is executed and the way that's going to produce the most value. So hang in there with US we know what we're doing.
There's a lot of Super bright people that are that are associated with this with this product release I think you'll be very happy. So thank you all for your time today I hope I answered everyones questions and Youll be hearing a lot more from us in the near term.
Thank you that does conclude today's teleconference and webcast you may disconnect. Your line at this time and have a wonderful day, we thank you for your participation today.