Q2 2022 Quantumscape Corp Earnings Call
Cell assembly have been transitioned to this line.
Located at <unk> campus, the phase II <unk> benefits from six times more floor space for cell Assembly.
Increasing flexibility area on our process.
Extend automation and in line metrology.
Add more cell assembly lines as we continue to scale our production.
This quarter, we achieved a peak of greater than 5000 weekly separator film starts to.
To improve the quality of distribution of ourselves we've been using much of our separator production capacity the baseline the quality improvements I mentioned earlier.
While we don't expect linear increases in starts each quarter.
We retain our goal of achieving peak weekly starts of 8000 before the end of the year.
Yes.
On the customer front, we continue.
To collaborate closely with folks volume as we work to bring our technology to market.
Our collaboration with Volkswagen Engineering teams has intensified in recent months with regular technical and product development meetings.
Their expertise has proved especially valuable as we build competence in mass manufacturing.
In addition to folks marketing group and our previously announced deals. We are pleased to report two additional customer sampling agreement with automotive Oems.
We've now announced agreement with six perspective automotive customers from global top 10 manufacturers by revenue to premium performance and luxury automakers.
Encompassing both pure EV and conventional Oems.
We've engaged with companies, we believe provide us with a strategic mix across geographic footprint and vehicle segment.
This breadth of customer engagement gives us confidence that demand for next generation solid state lithium metal batteries remains robust across the automotive industry.
And if we can accomplish our goals the scope of the opportunity ahead of us remains compelling.
Before I pass things over to Kevin a few concluding remarks.
This quarter has been both rewarding and challenging.
Despite facing the hurdles I mentioned earlier.
The team has made significant strides in cell development manufacturing and customer engagement.
We're grateful for the exceptional focus and discipline. The team has shown through the challenges of delivering on a never before realized technology.
And the commitment of our automotive partners to help us bring this technology to market.
We remain focused on a key goal of delivering a 24 are a sample to the automotive customer this year.
And look forward to reporting our continued progress in the coming months.
Kevin.
Thank you Jamie.
In the second quarter, our operating expenses were $96 million or.
Our GAAP net loss for the quarter was $95 million.
This level of spend was in line with our expectations entering the quarter.
Cash operating expenses defined as operating expenses less stock based compensation and depreciation were $60 million for the quarter.
For full year 2022, we continue to expect cash operating expenses to be in the range of $225 million to $275 million as we support additional hiring and increased production volumes on our engineering lines.
In line with previous guidance, we forecast opex to grow steadily during 2022, and 2023 opex to grow modestly from 2022 levels.
We slow our head count growth rate.
Allocate resources from development manufacturing and realized gains from investments in automation.
Capex in the second quarter was approximately $28 million.
<unk>, 40% of our Q2 Capex went towards our phase two engineering one.
40% towards zero in the Qs campus, Buildout and 20% towards our phase one engineering line.
This level of Capex spend was below our guidance range of $35 million to $65 million as we are actively working to prioritize investment into critical milestones, while conserving cash to maintain flexibility through the current difficult macroeconomic environment drivers of lower Capex spend vary by project and included deliberate postponement.
To refine equipment specification.
Delays imposed by supply chain factors or technical challenges as discussed in the shareholder letter.
Realized cost savings and improved visibility into order times.
An example of realized savings was the facility Capex to support our phase II Engineering line in this case value engineering and in sourcing construction activities helped the specific projects come in below budget.
These drivers also impact full year, Capex projections, and we now estimate our capital expenditures to be between $175 million and $225 million for full year 2022.
We believe most of the reduction in our forecasted 2022, Capex spend will now be pushed out into 2023.
Despite the lower Capex spend in 2022, we remain focused on achieving our goals for the year, including delivery of a sample prototype sells to the customer demonstration of a cell format designed to accommodate lithium plating and stripping scale.
Scaleup of peak film starts to 8000 per week and taking delivery of the majority of <unk> zero equipment towards a 2023 line start.
We note that on the last call. There is a distinction between equipment sufficient to allow us to make the first cells on the pre pilot lines and equipment required to make significantly higher volumes.
We believe we remain on track with respect to the former.
Some of the tools required for the latter to be received in 2023 with respect to cash we spent $79 million on operations and Capex in the second quarter.
We now expect to enter 2023 with over $950 million in liquidity above previous guidance of over $800 million.
With that I'll pass it over to you John .
Thanks, Kevin will begin today's Q&A portion with a few questions. We've received from investors and analysts over the <unk> and in our IR inbox.
We received many questions around our timeline and this quarter. We spent some time discussing that in more depth in the shareholder letter, which I keep can you give any more color on when our technology will be fully developed timeline more broadly.
Yes, John our goal is to get this technology to market as quickly as possible.
On today's call, we wanted to update our view of the timeline going forward.
Your line is gated by a number of factors some of which we control some of which we don't for example, like other companies, we're always vulnerable to unexpected supply chain disruptions.
They are also product and process development risks.
One is the need to specify order and quantify production tooling.
And subject to these uncertainties as we said in the letter. We're currently targeting approximately 18 months between the a and B sample.
A sample and prototype samples cells.
Maybe some low volume processes.
And we anticipate a similar timeframe to go from B sample to see samples.
However, given the unequivocal demand, we see from customers the differentiated performance of our protein itself and.
And the strength of our balance sheet, we believe the opportunity ahead of us remains uniquely compelling.
Okay, great. Another topic, we've spoken a lot about it.
<unk> landscape.
Some of them to say after this quarter asked where lithium ion batteries to be able to bridge the gap to solid state over the next five years.
Yes, so relative to conventional lithium ion cells, we don't believe it's possible to achieve a dramatic increase in performance without a change in chemistry, we believe our approach.
On the solid state throw them, except later and institute formed in order to pure metallic lithium can.
Can deliver between 900000 what hours per liter.
Continuously enabling 15 minute charge.
Those are targets, we don't believe are achievable with conventional chemistry.
Relative to next generation automotive chemistries, such as lithium metal or solid state.
We haven't seen any one show data from.
Comparable to what we published which includes the ability to run 800 charges start cycles at a one hour rate of charge at room temperature and modest pressure, what we referred to as the gold standard test conditions.
And we've shown data in single for attending ourselves.
But of course, we do need to do more work to scale up to higher layer counts and production throughput.
We're targeting 24 layers for first samples, which of course, we plan to ship later this year.
While we're pleased that we showed early progress on details today.
I want to note that we're not done with this development.
Okay great.
Another investor asked the question.
Qantas group need to make perfectly uniform totally defect free separators for yourself work.
So the short answer is no we don't.
In fact, the baseline process, we show in the quality improvements section of our letter.
We chose a number of non uniformity.
Has already produced separated that have delivered industry, leading results, we've shown so far including cycling on those gold standard test conditions as well as repeat is 15 minutes outperformance.
So the key is knowing which defects matter and which ones don't and to focus on the former not the latter.
Based on the many years of experience we have gained with the system and the solid state in general we believe we've gained a lot of learnings in this topic and this is actually a key part of our IP our intellectual property.
That said, if you think of the quality of distribution as a bell curve for example.
What we're trying to do is shift the entire curve through the higher quality end of the spectrum, because we believe improving the quality of distribution of our materials raises the performance scalability and reliability of our sales.
Okay, Great, we'll switch gears a little bit now on this next one for Kevin.
We've said that we plan to be strategic around fundraising and careful with capital spending in general how should investors think about our funding and forecast cash runway now.
Thank you for the question John .
Ended Q2, 'twenty, two with approximately $1 $2 8 billion in liquidity and forecast exiting 2022 with over $950 million in liquidity and.
And forecast our cash runway extending through the end of 2024.
This we believe provides sufficient capex to complete our second phase engineering and pre pilot <unk> lines, which we believe will be capable of producing our <unk> samples and initial <unk> samples.
Also includes Opex run the lines generate samples to engage in customer qualification and continued process development working towards broader commercialization.
To support subsequent expansion of the business, we would anticipate raising funding between now and the end of 'twenty four and plan to be strategic on the form timing and amount.
Okay great.
Some investors have asked how it looks like in creation of powered effects quantum escape and our relationship with Brookside.
This is our relationship with Volkswagen dates back to 2012.
Spanned multiple Ceos, and we've worked with Frank Thomas the CEO of <unk> for many years, including as a member of our board of directors.
We have a tremendous amount of respect for Franks battery knowledge and operational experience.
And more important.
More importantly, a high degree of trust with Frank.
Given that the core of powerful is the former badly center of excellence within VW, which as a group we've been working with since its inception.
We expect this transition to be quite natural.
Okay, Great and then we had two questions come in from Jose <unk> of JP Morgan. His first question, which technical milestones are you looking to achieve in the next six months and what has been the largest technical challenge you had to overcome to develop to 'twenty four let herself.
Yes, so the most important milestone we're looking to achieve in the next six months are of course delivery of the sample. This kicks off the automotive qualification process.
And in our view represents a substantial risk reduction.
Our path forward.
Relative to the largest technical challenge, we faced last quarter I would say it was the discovery of the contaminant in our material that we referenced in the letter.
And of course through some great work on the part of the <unk> metrology team, we were able to identify the composition of this contaminant and this allows us to work to resolve it.
Okay, Great Jose second question was with regards to Volkswagen and the recently launched New Battery company structure has this changed in any form your collaboration with the firm is there any additional color you can provide on the collaboration.
So relative to the collaboration we've been collaborating more closely with VW in recent months with more frequent technical and program management meetings.
But relative to the nature of the collaboration itself, we haven't announced any changes.
Okay. Thanks, so much guys. We're now ready to begin the Q&A portion of today's call.
Operator, please open the line for questions.
Absolutely.
Like to ask a question. Please press star followed by one on your telephone keypad if for any reason you'd like to remove that question. Please press star two.
As a reminder, if you are using a speaker phone. Please remember to pick up your handset before asking your question.
We'll pause here for just a moment to compile the Q&A roster.
Our first question is from the line of Winnie Dong with Deutsche Bank.
Your line is open.
Right.
Alright, a bit more detail.
Possibly.
Past that you're pushing out which is a return to normal capex spending for the year.
Specifically, what kind of <unk>.
Supply chain and factories.
I know you mentioned that clinical challenges facing but what kind of supply chain factors are you considering that.
Pushing that up.
Thank you for the question if you compare.
The annual guidance from last quarter of <unk>.
$325 million to $375 million take the midpoint of $3 50, and compare it to the current 175 to $2 25 midpoint of 200.
We are seeing pushing approximately.
The bulk of that $150 million into 'twenty, three which is I think what you are you are asking about.
The primary drivers were the deliberate.
<unk>.
To refine the specification, we had execution buffers and our goals in 'twenty, two and while we still target achieving those 22 goals in 2002, we have used up much of that buffer and that has delayed the ordering of equipment gated by buy tactic.
Technical development and an example of that would be some aspects of the cell assembly, which would be gated by high confidence and the proprietary cell design. Another example would be we made changes in some of our separate our processes in the quarter to improve quality and reliability and we wanted to incorporate those process changes into.
Some of our tooling that automates one of our separated processes and when you combine those postponements in ordering with supply chain headwinds facing the industry. That's what's resulted in our and our.
Capital forecast.
Okay.
Okay got it.
Separately I was wondering if you can.
Remind us again whats required to go from a sample <unk> argument can be 18 months timeframe that you are sort of targeting and similar timeframe from b to <unk>.
Could you remind us sort of like the steps that I wanted to pass any interest of accomplished at BOL Com H b.
Yeah. So this is Jack.
Take that one.
Generally speaking the sample is whatever the automotive Oems think they need to see in order to convince them that the product.
Basically is capable of delivering the functionality. They want so that obviously will vary by OEM <unk> will have a different definition of that the bcf well typically represents.
Functionality <unk>, Apple, maybe a little bit more some small tweaks are typically okay.
But but it's typically made using processes that are closer to production processes. They can be on smaller versions of the production tooling.
But they are more production like the example, which can be completely handmade.
<unk> sample.
And then is.
Has all the functionality has those production processes and is actually implemented on the production tooling on which you're going to produce the production itself. So if you. If you think about the definition of the seats. Apple then clearly the C sample line depends on the volume of the vehicle that you are trying to serve so if you kind of sort of the car.
That makes.
<unk> units a year that will be very different type of sample line than a car that makes.
1000 units a year right because.
In one case.
The tools required a much better than the other case. So she sample line the real definition as it is the lineup of what your production sales are coming in.
And.
And how big that line is a function of.
How much how big a volume youre kind of serve with that for that line.
The only other point I'll make is it.
Typically.
All of these.
Different sample stages have multiple generations, so there might be multiple a's and b's and c's.
What we said on the call here was the very first.
B samples that we make which are.
The prototype B sample cells there.
There.
Like b samples, but the prototypes.
Those.
Could come off of line, where some of the process steps are lower volume than others. So that's really the summary of our timeline.
Okay. Thanks, Thanks, so much for taking my question.
Absolutely.
Thank you Tony.
Our next question is from the line of Gabe Daoud with Cowen.
Your line is open.
Thanks and afternoon, everybody. Thanks for all the prepared remarks.
Maybe if we could just try to hone in a little bit more on the timeline. So if it's 18 months between.
See if we think about a this year as being.
Call. It December delivery, so does that put you see sample delivery.
<unk> 25, and then.
Yeah.
<unk> has been stood up in like late 'twenty six early 2017 could you maybe just help us frame that timeline and then progression to Q1 I guess.
Yeah. So we didn't say by the gig thanks for the question.
We didn't say anything about U S. One in the letter what we did say, though that timeline for a b and C is exactly what you laid out so assuming that the.
The ACF what happens as we are targeting the end of this year and assuming that the gasoline AMB and P&C, what were anticipating which as we said roughly 18 months.
Then you're absolutely right that would put us into the end of 'twenty five for this example, remember this is Apple of course is defined as.
Our cells.
Coming off of a production line using production tooling.
So that should be able to be revenue generating.
Kevin already at that point.
And all we've said about <unk> of course is going to be some time after that because you need.
You need to have.
The blueprint for the line, which is really the function one of the key functions of QAD always to be able to get all the details around.
The processes the tools assistant the specifications and so on so we can our larger versions of those tools and more of them to be able to turn a bigger bigger lines. The thing you don't want to do is start trying to turn up.
Higher volume production line.
Before you have.
All the details work out of the tooling because that just let us put capital at risk in there and obviously you don't want to do that.
Okay got it. Thanks, that's helpful and then.
Maybe just as a follow up I know, we're kind of focus here on the 24 layer, but I guess it was just curious if the <unk>.
16 layered the debt.
It cycles and then.
And I guess as we are and maybe.
So that's the first question and then I guess, sorry back to the 24 layers since that is closer to representing at Asa Bose there like anything you can say on what.
What that looks like on an energy density standpoint, thanks, guys.
Yeah, Yeah sure so.
<unk>.
<unk>.
The 16, there wasn't an explicit milestone that we had.
We felt like we've made enough progress on the 16, there to where we could move to making 24 it yourselves.
As you pointed out we already reported over five year cycles and about 16 ourselves. So we didn't really see you need to.
To work more on that.
<unk> switched over the 24 day ourselves well actually as you point out.
Quite.
Quite pleased to have those first 20 for yourself on tests already today in July .
That gives us a number of months to refine the design incorporate any any improvements.
And still be able to make the example target for.
For the end of the year.
The energy density, we Havent commented on Gabe.
The ace Apple really isn't going to be to sell with.
With Energid entities that are close to the production level because.
It doesn't have the right number of layers in the packaging isn't really optimized all of those things are things that we think will happen.
In connection with the B sample.
Got it thanks.
Absolutely.
Thank you Gabe.
Next question is from the line of Chris Snyder with UBS.
Your line is open.
Hey, Thank you and thanks for taking my question I wanted to follow up on Dave's question on the timeline.
With a specific focus on progressing towards Q1.
Is it fair to assume that.
The delivery of a sample.
Is required for <unk> to be commissioned and move forward or could that checkpoint be met.
With the <unk> sample any color there would be really helpful.
I know this is a great question I think one of the things that we are thinking at this point is that one of the.
The goal is that we think we can meet from the culex airline itself is to make these samples and by doing that we think we can.
We can gain a lot of learnings that might otherwise.
Need that one gigawatt hour Qs one line, so basically we think that essentially <unk>.
See sample coming out of Q1 zero can deliver to us.
Some of the same learnings that we might otherwise need to do with the one gigawatt hour phase one Qs one line.
Which we think opens the possibility to two scaling up.
Subsequent production lines more quickly.
Certainly our current thinking.
If things go as planned and that would be that will be the way, we'd like to see them unfold.
Thank you and the company is obviously just continues to announce a number of commercial agreements I mean, I think it's been the general kind of consensus view from the analyst community that <unk>, one or just the first kind of substantial production facility would be with Volkswagen as the JV and the counterpart.
Is there opportunity that the counterparty on the first.
Commercial commercially sized facility could be an OEM other than Volkswagen.
So we haven't said anything.
About.
Specifically, who else we're going to.
Or do a JV with outside of Volkswagen.
There obviously is the joint venture with Volkswagen, which is designed to serve the needs of Volkswagen.
For the other non Volkswagen customers.
I think there is a couple of different ways to serve them. One of course is through this expanded.
<unk> line, where we produced six apples off of zero.
That will allow us to serve a certain volume of.
Our vehicles, so we wouldn't be able to do like Super Super High volume type.
Type vehicle programs out of that line, but but for smaller perhaps premium high performance type of a vehicle.
That would be what option disruption of course has to do.
Joint ventures like the ones, we have with what we have with VW with other Oems in fact, one of the I think one of the.
Agreements that we announced specifically had a section in there.
<unk> the possibility of a joint venture with that.
Other.
On top of that automotive Oems so that's another possibility.
There are also other opportunities that we're looking at beyond those that might involve.
Other more creative ways to.
Get there but.
I think that the.
Our main goal is to get the technology into the market as quickly as we can.
We've said in the past there are basically.
Three sort of general ways to do that.
One is to build our factories I guess curious there was an example that the small factory, but at the factory.
Second is to partner with Oems to do JV. The VW deal for example that the third one we referenced in the past occasionally although we haven't provided any more details than that.
At some point it might make sense to license the core IP, we would only do that if there is someone that we that we.
Trust as a partner and where the economics make sense.
But those are the three general options and we don't have any religion around any one of them we want to basically pursue what makes the most business sense.
For us for our investors for our customers.
I appreciate that and if I could just squeeze one last one and then over the past couple of years. The company has produced a very high number.
A high number of data and in test metrics that they provided to the market.
I would just be interested dug deep amongst all these test metrics data that you guys produce which.
What to you as the most significant kind of indicator of what youre tracking whether it just be the companys progression.
The technology.
Interested to hear on year over year amongst all of that data in and test metrics, what do you think Scott.
Great question, I think probably I would say the most significant asset and the data. We published is this notion of what we call. The gold standard test conditions right. So the idea that this is data showing that these lithium metal cells, which obviously are designed for high energy density because the lithium metal anode is more energy dense than carbon or carbon silicone hybrid and so that opens up the pocket.
Youre getting to these 900 to 1001 hour per liter type numbers, but the important point is that kind of a design. We've demonstrated that you can operate that.
Chemistry.
With high rates of charge. So we do all of our testing that we've published in recent times.
<unk>, meaning one hour charge rate at.
At room temperature recent tests have been at 25 degrees Celsius.
Four cycles as Gabe alluded to in his question earlier and.
<unk> done a modest pressure, we use no more than approximately two points, where atlas was a pressure in.
In recent times, where you were dropping pressure below that so that's that's the first key point I'd focus on is the test results that show.
<unk> done under this organic conditions without compromising pressure or temperature or rate or cycle life. The second key thing I'd say on the data front is that we've shown data showing both the ability to run at even higher rates than we earlier this year published.
Some data on <unk>.
<unk> 15 minute charge 400 times in a row.
That's also really really remarkable result.
But we haven't seen any data from any other lithium metal player that can do that or for that matter even.
<unk> energy sales.
The sales that are designed for the highest possible as youre not power cells, which are designed for power.
And then I think the third thing that I would point to that as the data as we keep showing it on increasing layer counts I think we've steadily.
We've kind of tried to keep our notice to the grindstone and just stay focused on our mission, which is to keep increasing layer counts.
While trying to maintain that level of functionality. So we went from one Lambda four layers 10, 16, and now 24 years at least very early data on 24, we're not done with that yet I wanted to be careful about that.
But those three things combined I think what gives us a lot of a lot of comfort that wanted something youre right the fundamental.
Data growth data is very compelling.
At a one hour charge rate cycles. The the high rate charged data for single ourselves would not be very compelling and then we try to.
Take that <unk> and increase in layer count with that and I think I.
<unk>.
All of those things are things that we.
We really haven't seen with with.
Other approaches.
<unk>.
High end you'd have to be automotive lithium metal cells.
Thank you for all that I appreciate it.
Absolutely thanks for the question.
Thank you Chris.
The next question is from the line of Ben <unk> with Baird.
Your line is open.
Hey, good afternoon, guys. Thanks for taking my question.
Congrats on the adding to the customer relationships, maybe could you just talk us through kind of how those relationships span.
Right.
Maybe just provide them with the sample.
So I would like to layer seller.
How are the all the different relationships differ I guess is the question.
Yes, yes. So these really shifts are generally quite similar what they basically are is that they represent a.
Effectively a reservation agreement on the part of the OEM.
To get a certain amount of capacity out of our.
Pre filing production out of the kyocera align.
Then in addition to that.
This involves our providing that those Oems with.
A set of intermediate samples so it will provide.
Samples.
Before they sample example.
Subsequent to Apple's leading up to that pre pilot line.
And I think the thing that we're excited about it.
Not only that there is now six such Oems.
But they really represent a broad cross section of the automotive sector right I'm, sorry, you mentioned in the letter.
<unk>.
A top.
Top 10 players.
On one hand as well as.
Non top 10, but well established premium luxury type brands.
They represent pure EV type players and convention Oems So we have both.
Both ends of the spectrum are multiple axes are represented I think we've tried to be as we've said before strategic about who we work with we are in the position for better or worse or being supply constrained right now theres more demand than we have the ability to provide sells today.
Frankly, we think will be definition for some time into the future, but the benefit of that is allows us to be a little more thoughtful about who we choose to work with it we've tried to choose players that we think.
Encompass the full spectrum of automotive.
The automotive sector.
In order to make sure that we have exposure to the whole sector. So I think we feel pretty pretty good about.
OEM momentum and our focus now is really just trying to.
Two.
Deliver the cells we can.
We can now.
Realized.
The potential of the opportunity ahead of us.
Thank you for that I guess, what Im asking is everyone received something physically to test or as there were at different stages.
And they are testing, where so maybe just receive data sorry relationship there versus others, we have tested.
Testing of actual.
So.
Yes, so I think.
Sure.
And don't quote me on this but I think because.
I haven't made the pool without it just for.
To your question, but I think every one of these guys to my knowledge I would say most of these players have in fact received cells at some stage.
<unk> already tested them.
<unk>.
Let's just say, yes, most of them have I think not.
Everyone has but most of them to receive cells and have tested them.
And there are different stages of their of their process. So obviously someone like VW is.
They're long we'd have that partnership in place for a lot longer some.
Some of the newer players we've been announcing clearance every every.
At regular intervals in time.
And we're gonna be at different points in their process, but most of these guys have already received the test itself and some of them.
That hasnt will get fell shortly and we will test them. So.
This is moving forward.
All of these players but.
They're just at different points in their journeys.
Cool thank you.
Last question you call out and you highlight the cell manufacturing step being completed could you just maybe delve into a bit more.
What that what that means.
What how it has changed.
Previously did it thank you.
Well, yes, I think that particular reference was to the phase II line. So as you know we have this phase one engineering line, which was in.
Overbuilding and we were turning up a phase two version of the line for additional capacity and capability and are new to us.
Campus facility and we've now turned off that phase two engineering and transferred.
Reduction.
<unk> to that line.
Yes.
That is.
That's an important point because it means that we're actually now making cells in.
This new facility.
Which means that we put in place the building the appropriate dry rooms, and appropriate clean rooms in power supply and people and all those things have to go into place to to be able to make cells.
Also in the thrilling memories where were.
Planning on deploying the rest of <unk>, which is a free pilot line, Kevin anything to add to that.
No that's a good summary.
Thank you guys have a good night.
Absolutely. Thank you Ben.
So I think thank you Ben good point, yes.
Yeah, Let me just go ahead and close out the call I want to thank everyone for joining the call.
I'd also like to thank our investors for their ongoing support of our mission.
I'd like to thank our forward thinking customers with their commitment to helping us get this technology to market and of course, our meeting team for their incredibly dedicated efforts to overcome all the heart problems associated with bringing groundbreaking new technology to market.
We look forward to reporting on further progress in the coming quarters.
Yeah.
That concludes the quantum escape Q2 2022 earnings call. Thank you all for your participation you may now disconnect your lines.
Okay.
Sure.