Q2 2022 CYNGN Inc Earnings Call

Yeah.

Speaker 1: Greetings and welcome to Syngin's second quarter 2022 financial results conference call. At this time all participants are in a listen-only mode.

Greetings and welcome to Finjan second quarter 2022 financial results Conference call.

At this time all participants are in a listen only mode.

<unk> and answer session will follow the formal presentation.

Speaker 1: If anyone should require operator assistance during this conference, please press star-zero on your telephone keypad.

Anyone should require operator assistance. During this conference. Please press star zero on your telephone keypad. Please.

Please note that this conference is being recorded.

Speaker 1: I will now turn the conference over to our host, Caroline Stone of the Equity Group. Thank you.

I will now turn the conference over to our host Carolyne Sohn of the equity group. Thank you you may begin.

Speaker 2: Thank you operator and hello everyone. Thank you for joining us. The press release announcing Syngin's results for the second quarter and six months ended June 30, 2022 is available at the investors section of the company's website at investors.syngin.com.

Thank you operator, and Hello, everyone. Thank you for joining us the press release announcing <unk> results for the second quarter and six months ended June 30th 2022 is available at the investors section of the company's website.

Investors that Finjan dotcom.

Speaker 2: A replay of this broadcast will also be made available on the website after the conclusion of the recording.

A replay of this broadcast will also be made available on the website. After the conclusion of this call.

Speaker 2: Of note, for those of you who have dialed into the call by phone, we are planning to broadcast a short video presentation and encourage you to also log into the webcast to be able to not only hear the client testimonial, but also see our autonomous stock chaser being used at one of Flambo's facilities.

Of note for those of you who have dialed into the call by selling we are planning to broadcast short video presentation and encourage you to also log into the webcast to be able to not only hear the client testimonial, but also see our autonomous stocks are being used that wonderful lindbergh facilities.

Speaker 2: You will have a few minutes to access the webcast now as I go over the state carport information.

You will have a few minutes to access the webcast now as I go over the Safe Harbor information.

Speaker 2: To do so, please go to the events and presentations page at the company's irs.investors.cunyin.com.

Did you. So please go to the events and presentations page has kept me its IR site at investors that such a dotcom.

Speaker 2: Before we get started, I would like to remind everyone that this conference call and any accompanying information discussed here contains certain forward-looking statements within the meaning of the Safe Harbor Provision of the Private Securities Litigation Reform Act in 1995.

Before we get started I would like to remind everyone that this conference call and any accompanying information discussed herein contains certain forward looking statements within the meaning of the safe Harbor provision of the private Securities Litigation Reform Act of 1995.

Speaker 2: These forward-looking statements can be identified by terms such as anticipate, believe, expect, feature, plan, outlook, and will, and include, among other things, statements regarding the company's continued development of the Enterprise Autonomy Suite, or EAS, and its components, or expectations regarding sales and or revenues.

These forward looking statements can be identified by terms such as anticipate believe expect future plans outlook and will and include among other things statements regarding the company's continued development that'd be enterprise Chinese suite R E S and its components.

Vacations regarding sales in our revenues.

Speaker 2: growth strategy, ability to deliver sustainable long-term value, ability to respond to a changing environment and operational factors.

Gross strategy ability to deliver sustainable long term value ability to respond to the changing environment and operational focus.

Speaker 2: Although the company believes that the expectations reflected in its forward-looking statements are reasonable as of today, those statements are subject to risks and uncertainties that could cause the actual results to differ dramatically from those projections.

Although the company believes that the expectations reflected in its forward looking statements are reasonable as of today. Those statements are subject to risks and uncertainties that could cause the actual results to differ dramatically from those projected.

Speaker 2: there can be no assurance that those expectations will prove to be correct.

There can be no assurance that those expectations will prove to be correct.

Speaker 2: Information about the risks associated with investing in Syngen is included in its filings with the Securities and Exchange Commission, which we encourage you to review before making an investment.

Information about the risks associated with investing in Sydney.

We did in its filings with the Securities and Exchange Commission, which we encourage you to review before making any investment decision.

Speaker 2: The company does not assume any obligation to update any forward-looking statements as a result of the information, future events, changes in market conditions or otherwise, except as required by law.

The company does not assume any obligation to update any forward looking statements as a result of information future events changes in market conditions or otherwise, except as required by law.

Speaker 2: On today's call, the company's Chairman and CEO , Leora Tall, will discuss recent operating highlights.

On today's call the company's chairman and CEO of New York Hall will discuss recent operating highlights.

Speaker 2: Chief Financial Officer Don Alvarez will follow with a review of the company's financials for the second quarter and first half of 2018.

Chief Financial Officer, Don Alvarez will follow with a review of the company's financials for the second quarter and first half of 2022.

Speaker 2: We will return to make a few concluding remarks before opening the floor for questions. With that, I will turn the floor over to Syngin CEO , Leor Tull. Leor?

Bill will return to make a few concluding remarks before opening the floor for questions with that I will turn the floor over to think and C. E O B are top tier.

Thank you Caroline and good afternoon, everyone.

Speaker 3: During the second quarter of 2022, our main priorities were pilot deployments of autonomous material handling scope chasers and recruit.

During the second quarter of 2022, our main priorities, where pilot deployments of autonomous material handling scope.

And recruitment.

Speaker 3: in particular recruitment efforts focused on expanding our engineering.

In particular, our recruitment efforts focused on expanding our engineering.

Speaker 3: And the first point we're very pleased to share that we launched an additional pilot deployment of our autonomous talk chaser with Flambo Inc, a member of the Nordic Group of Composters.

The first point, we're very pleased to share that we'll launch in additional pilot deployment of autonomous Stoke Jason with Schlumberger and member of the Nordic group of companies.

Speaker 3: The pilot is taking place at Flambose's 177,000 square foot manufacturing facility in Columbus, Indiana where they specialize in manufacturing and distribution of products for various...

Policies, taking places Colombo's 177000 square foot manufacturing facility in Columbus, Indiana, where they specialize in manufacturing and distribution of product for various industries.

Speaker 3: In a few minutes, we will share a video presentation featuring an interview with the general manager of this flambeau facility, including footage of our autonomous stop chaser in action as part of this...

In a few minutes, we will share a video presentation, featuring an interview with the general manager.

Including footage of cornerstone of a stroke tracer in action as part of this deployment.

Speaker 3: We're thrilled to expand our partnership with the Nordic Group through this deployment with Flambo and are excited that they're immediately seeing the value autonomous material handling vehicles bring to their operation.

We're thrilled to expand our partnership with the Nordic group through the plumbing Colombo and are excited the theory.

Maybe if you think the vastly autonomous material lending vehicles bring to their operations.

Speaker 3: Another example of the impact Syngen's Enterprise Autonomy Suite has on material handling or 3PL customers can be seen in a case study we released last month, which quantifies the value that our industrial autonomy technology brings global logistics and fulfillment, or GLNF, for whom we deployed autonomous talk chasers at the Las Vegas facility beginning in late 2021.

Another example of the impact Finjan enterprise pardon me suites is on materials handling or <unk> customers can be seen in our case study, we released last month, which.

Quantify the value that our industrial technology.

Logistics.

Or given that for whom we deployed autonomous took shape after Las Vegas, beginning in late 2021.

Speaker 3: The case study found that 64% reduction in human labor costs when compared to using manually operated forklifts and a 33% increase in productivity when compared to using manually operated electric Pelagets. The numbers speak for themselves.

The case study found that 64% reduction in human labor costs, when compared to using manually operated at corporate.

At 33% increase in productivity when compared using manually operated electric.

The numbers speak for themselves.

Speaker 3: Additionally, the higher the throughput of the facility, the greater the potential savings and efficiencies. Further increases the value with each vehicle that is made autonomous with changes.

Additionally, the higher the throughput of the facility the greater the potential savings and efficiencies further increases the value with.

With each vehicle that he's made upon us with Siem solution.

Speaker 3: Deployments like the one with GLNF and Flumbo have allowed us to gather client feedback and insights that have enabled us to make significant improvements to our Enterprise Autonomy Suite, culminating in EAS version 8.0 that we released just a few weeks ago.

The performance like the one with Jillian essence, limbo, if allowed us together client feedback and insights they have enabled us to make significant improvement to our enterprise economy suite.

Anything in E. S version eight point, though do we released just a few weeks ago.

Speaker 3: This release includes major improvements to our backend and infrastructure, as well as over 100 new features, all while reducing component complexity and cloud computing costs.

This release includes major improvements or backend and infrastructure as well as over 100 new feature.

Overall, reducing component complexity and cloud computing cool yeah.

Speaker 3: EAS 8.0 is a key milestone and an important step towards commercialization at the moment.

Yeah, Yes, eight point, though is a key milestone and an important step towards commercialization.

Speaker 3: Moving to the second point of focus for the first half of the year, recruitment. We were very successful in this area during the second quarter and are excited to have filled several key positions in recent months. As of July 31, 2022, Syngen had 62 employees, an net increase of 29 since the end of last year.

Moving to the second point of focus for the first secondly, your recruitment we're very successful in this area. During the second quarter and are excited to have filled several key positions in recent months as of July 31, 2022 things Jim.

62 employees and net increase of 2009 since the end of last year.

Speaker 3: We have already doubled the size of our organization in just seven months, putting the proceeds of our financing to their intent.

We have already doubled the size of organization in just seven months, putting the proceeds of our financing to their intended use we believe that highly motivated team of top talent continues to be critical to our ability to achieve future milestones and remain competitive.

Speaker 3: We believe that highly motivated team of top talent continues to be critical to our ability to achieve future milestones and remain competitive. Before turning to the next slide, I would like to mention that the team of top talent continues to be critical to our ability to achieve future milestones and remain competitive.

Before turning to review our financials.

Speaker 3: We will now share a video featuring some words from the general manager of the Slombol facility where autonomous stopchaser was recently deployed.

We will now share a video featuring some words from the general manager of the Schlumberger facility, where autonomous stroke Chaser was recently deployed.

Speaker 4: Hello, my name is O'Grenner and I'm the Director of Marketing here at Synchint. We recently deployed our Enterprise Autonomy Suite to a manufacturing facility in Columbus, Indiana called Flambeau. Today we thought it would be interesting to get Joe Peterson, a representative of Flambeau, to tell you a little bit about what it was like to bring a self-driving vehicle to their facility. In short, the organization saw immediate value. They think it's going to increase throughput and make them more competitive. We hope you enjoy.

Hello, My name is <unk> and I'm, the director of marketing Herrington, James We recently deployed our enterprise economy to a manufacturing facility in Columbus, Indiana.

Today, we thought it would be interesting to get Joe Peterson representative.

To tell you a little bit about what I would like to bring self driving vehicles to their facility and shorter to organizations on immediate value.

Increased throughput and makes it more competitive we hope you enjoy it.

My name is Joseph Peterson, I Am General manager plant manager of the Flambeau, Columbus, Indiana facility.

And I am responsible for all the manufacturing and distribution of the product that's manufactured here.

We have been struggling to redesign and rethinking our material handling side of our manufacturing and distribution process.

Syngenta.

<unk> was one of the first times that I saw a scalable logical not working capital intensive high value solution that will grow with us.

Flambeau is one of several companies that belong to the Nordic group of companies Flambeau itself has a handful of campuses across North America, including Mexico.

We manufacture a variety of different products and the products range from toys to sporting goods to industrial to automotive. We also manufacture products for OEM, which means we produce other people's product and other People's brands and we distribute all of the product that's manufactured.

Here, how does this distribution center, we're constantly trying to expand our markets one of the key things that we can do to do that is to be there with product faster than any of our competitors.

His drive Mod really unlocks the potential for us to start the journey of increasing throughput and decreasing the time to market from the manufacturing floor feed.

Feedback that I'm getting from our associates and our leadership has been nothing but positive I start with the associates on the floor of the people that are going to have to interact with that product used that product apply that product minute in a minute out they've engaged it they've embraced it they see the applications. They are already asking what else can we do there.

Very excited to interact with the product and the nature of the culture of this facility is one of curiosity. So they took to this almost immediately.

The autonomous vehicle isn't intended at least at the flambeau facilities to displace any human being or.

What is doing is helping us to offload the non value add activities from our human resources and free them up to concentrate more on the efficiency of the value added side.

So we will be able to literally do more with the same amount of people and achieve our strategic goals of growing faster throughput to market competitive.

[music] so value added in our definition is those individuals that are actually converting raw material into a sellable product. The non value added activity would be anything required that doesn't directly include those activities like material handling material transport material inventory.

This vehicle will do.

Not displace anybody the value added activity has been freed up to increase its capacity. So it's the same investment.

More capacity.

So the experience with the Syngenta deployment team has been nothing short of fantastic. They came in they took a look at what the process is what we're living with today they looked at the <unk>.

Product what is the application is and capability is and then lay that into a starting point knowing our journey is going to be targeting increased throughput. We're really excited at flambeau Columbus campus to get this process off the ground and start our journey to increase.

Profitability improve our service levels and get to market faster than anybody else.

[music].

Speaker 3: We're excited every time we hear from people working alongside our autonomous...

We're excited every time, we hear from people working alongside the autonomous vehicle sharing the impact that this cutting edge technology can make them their daily workflows, bringing immediate value by increasing their productivity and lowering costs, we truly believe that our industrial autonomy soccer and data platform will be a leading factor in the move towards <unk>.

Speaker 3: sharing the impact that this cutting edge technology can make on their daily workflows, bringing immediate value by increasing their productivity and lowering.

Speaker 3: We truly believe that our industrial autonomy software and data platform will be a leading factor in the move towards Industry 4.0. And with that, I'll turn it over to Don.

Industry, four point, though and.

And with that I'll turn it over to Don to review our financials.

Speaker 5: Thanks, Lior. I'll quickly go over financial highlights for the second quarter and first half of 2022, covering both R&D and G&A expenses, which make up our total op-ed.

Thanks, Lee our I'll quickly go over our financial highlights for the second quarter and first half of 2022, covering both R&D and G&A expenses, which make up our total opex.

Speaker 5: Additional details can be found on our earnings press release that was issued earlier today, as well as in the Form 10Q, which we anticipate filing with the SEC this fall.

Additional details can be found in our earnings press release that was issued earlier today as well as in the Form 10-Q, which we anticipate filing with the SEC. This week.

Speaker 5: As a pre-revenue company, we did not generate any revenue for the three months ended June 30, 2022 and 2021. However, we do anticipate the start of nominal revenue generation from pilot deployments and other products and services in the coming quarter.

As the pre revenue company, we did not generate any revenue for the three months ended June 32022, and 2021. However, we do anticipate the startup nominal revenue generation from private pilot deployments and other products and services in the coming quarters.

Speaker 5: Total operating expenses for the second quarter ended June 30, 2022, for $4.6 million, compared to $2.1 million for the same quarter of the prior year.

Total operating expenses for the second quarter ended June 32022 for $4 $6 million compared to $2 1 million for the same quarter of the prior year.

Speaker 5: The increase was primarily due to a $1.4 million increase in R&D expenses related to non-cash stock-based compensation.

The increase was primarily due to a $1.4 million increase in R&D expenses related to noncash stock based compensation.

Speaker 5: Costs incurred for additional engineering staff and contractors, allocated occupancy costs, and R&D related trouble.

Costs incurred for additional engineering staff and contractors allocated occupancy costs and R&D related travel costs.

Speaker 5: We expect these costs to continue to increase as we continue investing in resources to support commercializing EAF.

We expect these costs to continue to increase as we continue investing in resources to support commercializing Eas G&A.

Speaker 5: GNA expenses also increased by $1.1 million, which was also related to increased stock-based non-cash compensation expense, costs incurred for additional personnel and professional services to support our status as a public company, and the

G&A expenses also increased increased by $1 1 million, which was also related to increased stock base noncash compensation expense.

Costs incurred for additional personnel and professional services to support our status as a public company.

Speaker 5: and higher occupancy costs related to the renewal of the company's lease that expanded the square footage of our Menlo Park office.

And higher occupancy costs related to the renewal.

The company's lease that expanded the square footage of our Menlo Park offices.

Yes.

Speaker 5: We reported a net loss of $4.6 million for the second quarter of 2022, compared to a net loss of $2.1 million in the prior year quarter as a result of increased operating.

We reported a net loss of $4 6 million for the second quarter of 2022 compared to a net loss of $2 $1 million in the prior year quarter as a result of increased operating expenses.

Speaker 5: Net loss per share on a basic and diluted basis was 15 cents based on approximately 30.7 million weighted average shares outstanding for the quarter ended June 30, 2022. This compares to a net loss per share on a basic and diluted basis of $2.20 per share based on approximately 1 million weighted average shares outstanding in the prior year.

Net loss per share on a basic and diluted basis was 15 cents.

Just on approximately 37 million weighted average shares outstanding for the quarter ended June 32022. This compares to a net loss per share on a basic and diluted basis of $2 24.

Share based on approximately 1 million weighted average shares outstanding in the prior year quarter.

Speaker 5: For the first half of 2022, total operating expenses were $8.4 million compared to $3.6 million in the prior year period. This was due to a $2.6 million increase in G&A expense and a $2.2 million increase in R&D expense.

For the first half of 2022 total operating expenses were $8 $4 million compared to $3 $6 million in the prior year period. This was due to a $2 $6 million increase in G&A expense and a $2.2 million increase in R&D expense.

Speaker 5: Net loss was $8.4 million for the six months ended June 30, 2022, compared to a net loss of $3.6 million in the prior year period. Net loss per share on a basic and diluted basis was $0.29 based on approximately 28.7 million weighted average shares outstanding compared to a net loss per share on a basic and diluted basis of $3.83 based on approximately 1 million weighted average shares outstanding in a prior year period.

Net loss was $8 $4 million for the six months ended June 32022, compared to a net loss of $3 6 million in the prior year period.

Net loss per share on a basic and diluted basis. It was 29 based on approximately $28 7 million weighted average shares outstanding compared to a net loss per share on a basic and diluted basis of $3.83 based on approximately 1 million weighted average shares outstanding in the prior year period.

Speaker 5: Turning to the balance sheet, we have $32.7 million in cash and investments in marketable securities at June 30, 2022, which compares to 21.9 million at the end of 2021.

Turning to the balance sheet, we had $32 $7 million in cash and investments and marketable securities at June 32022, which compares to $21 9 million at the end of 2021.

Speaker 5: Our working capital was 32.2 million compared to 22.1 million at the end of 2021. And total stockholder's equity was 33.3 million compared to 22.2 million at December 31, 2021.

Our working capital was $32 2 million compared to $22 1 million at the end of 2021, and total stockholders' equity was $33 3 million compared to $22.2 million in at.

At December 31, 2021.

Speaker 5: I'd now like to turn it back to Lior. Lior. Thank you, Doug. To close, we continue to move forward with deployments and are working closely with our partners to get our technology and platform to a point of product consistency and maturity that customers will come to expect from this engine ready. With that operator, let's open it up.

I'd now like to turn it back to Laura.

Thank you Doug to close we continue to move forward with deployments and are working closely with our partners to get our technology and platform to a point product consistency and maturity.

<unk> will come to expect from casino in Britain.

With that operator, let's open it up for Q&A.

Speaker 1: Thank you. And ladies and gentlemen, at this time we will conduct our question and answer session.

Thank you.

And ladies and gentlemen at this time, we will conduct a question and answer session.

Speaker 1: If you'd like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate.

If you'd like to ask a question. Please press star one on your telephone keypad.

A confirmation tone will indicate that your line is in the question queue.

Speaker 1: You may press the star key followed by the number two if you would like to remove your question.

You May press the Starkey followed by the number two if you would like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys.

Speaker 1: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Our first question comes from Rommel Dionisio with Aegis. Please state your question.

Speaker 6: Thanks. Thanks for taking my question. I wonder if you could just characterize, you know, the hiring environment. There's so many moving parts, tight labor markets, but on the flip side, we hear of tech layoffs, obviously a prominent automotive company leaving the barrier, moving to another state. Could you just maybe give us a feel for the environment for hiring? Obviously, you guys have added a headcount very successfully, but are you getting the people you want at the rates you want? Maybe you could just give us a little granular.

Thanks, Tim and thanks for taking my question I Wonder if you could just characterize.

Hiring environment, there's so many moving parts tight labor markets, but on the flip side we're here.

Yes.

Prominent automotive companies, leaving the Bay area moving to another state could you just maybe give us a feel for the environment for hiring obviously you guys have added head count for successfully but are you getting the people you want at the rates you want me.

It's a little granularity on that thank you.

Speaker 3: Sure, hi Romel, thank you for joining us today. You know, one of the things that...

Sure Hi, Robert Thank you for joining US today, you know one of the things that.

Speaker 7: of a byproduct of COVID is organizations that went through it, including us, ended up being very effective in working in both a hybrid setup where people can work from home or need to come to the office when needed, but also in a more distributed manner. But we ended up doing...

That's sort of a byproduct of Covid is organizations that went through it including us.

Ended up being very effective in working both the hybrid set up where people can work from home or need to all come to the office when needed.

So in a more distributed manner.

We ended up doing is.

Speaker 3: concentrating a team in Menlo Park that need to be close to the vehicles, to the test facility, and to one another, and hiring both domestic in other states and out of the country in places where it's more cost effective.

Concentrating a team in Menlo park didn't need to be close to the vehicles through that facility.

And to one another and the hiring both domestic and other states and out of the country places, where it's more cost effective and it makes more sense for us.

Speaker 7: and it makes more sense for us for other parts of the business. So at the moment, we're able to hire exactly the people we want. The prices went up, but not very significantly. But some of the costs...

There are other parts of the business. So at the moment, we're able to hire exactly the people we want the prices went up but not very significantly.

But some of the cost.

Speaker 3: is actually compensated by the fact that you don't have everyone at the office every day. For us, so far, it's been a very successful year.

Actually compensated by the fact that you don't have to everyone that still sits everyday so for us. So far it has been a very successful here and not recruiting.

Speaker 6: Okay, good. And a quick follow up, if I may, you know, with some obviously overall stock market uncertainty and supply chain, you know, continued issues there. Are there any you've obviously had some successful announcements of partnerships already, but are you getting the sense that future potential partnerships might be in any way delayed by some of these macroeconomic issues or global, you know, sort of uncertainty issues? Thanks.

Okay, good and a quick follow up if I may.

Some obviously overall stock market uncertainty and supply chain continued issues there.

Are there any you've obviously had some successful announcements of partnerships already but.

Do you get any sense that feature puts us partnerships might be in any way delayed by some of these macroeconomic issues are global sort of uncertainty issues. Thanks.

Speaker 7: Can you just elaborate when you say partnerships?

Can you just elaborate when you say partnerships are what you referred to.

Speaker 6: I'm sorry, we are say that one more time.

I'm, sorry, say that one well.

Yes, let me just explain when you say partnerships what do you referred Oh, Oh, Yeah, just just potential customers and.

Speaker 7: Can you just explain when you say partnerships, what do you refer to? Oh, yeah, just potential customers. And like with Columbia or Greenland, just obviously you've announced some very successful initial strategic partners. But I just wonder if some of the macroeconomic factors and challenges that every company faces in technology these days are slowing down the marketing process and the sales process from your perspective at all.

Like what does a Columbia Greenland, they just obviously you've announced some some very successful initial.

Strategic partners, but I, just wonder if some of the macroeconomic.

Factors and challenges that every company faces and technology. These days.

<unk> are slowing down the marketing processes and sales process from your perspective at all.

So it's a good question organizations are generally more cautious when it comes to spin.

Speaker 7: So it's a good question. Organizations are generally more cautious when it comes to spend, but autonomy automation, because of the impact it makes on people's operation by reducing dependence on human labor and giving more flexibility, and over time cost reduction, is to some degree sort of recession resilient type of product.

You know autonomy automation because of the impact it makes on people's operation by reducing dependence on human labor and giving them more flexibility.

Overtime cost reduction.

To some degree sort of a recession resilient type of product.

We have so two sites to a tourist market one.

Speaker 7: So the two sides to this market. One is the supply chain that feeds into us, the vehicles, the components of our drug mode kit, and the other is like.

Slight changes into us the vehicles the components for drug market and the others like you said the customer facing.

Speaker 7: the customer facing. On the customer facing, one of the things that really allows the customer to be able to see

On the customer facing one of the things that really allows the.

Speaker 3: to be able to work with the customers in the way they want is the ability to either support new vehicles that come off the Columbia line or retrofit an existing fleet that the customer has if they're not willing or not ready to invest in new vehicles and already have existing operating systems.

To be able to work with the customers in the way they want the ability to either support new vehicles that come off the Columbia line or retrofit an existing fleet that the customer has if they're not willing or not ready to invest in new vehicles and already have existing operating groups.

Speaker 7: On the supply chain, one of the things we started investing more is adding more alternatives to the components we're buying, expanding our partnerships on that.

On the supply chain one of the things we started investing more.

And deemed more alternative to the components, we're buying expanding our partnerships in that Oh that aspect domestically in the U S and in Europe .

Speaker 3: that aspect domestically in the US and in Europe and reducing the dependence on China.

And reducing the dependence on China.

Speaker 7: But in general, so far, we're optimistic, we're working the plan, and everything seems to be according to the timeline.

But in general so far you know we're optimistic we're working the plan and everything seems to be according to the timeline.

Okay. Thank you so much.

Yeah.

Speaker 1: thank you just a reminder to know the audience question press star one on your phone

Thank you and just a reminder to the audience to ask a question press star one on your phone now.

Speaker 1: Thank you. It appears that's all the questions we have for today. I'll turn the floor back to management for closing.

Thank you. It appears that is all the questions. We have for today I'll turn the floor back to management for closing remarks.

Yeah.

Speaker 7: Thank you all for your time today. We're always open to conversation with investors and are pleased to have hosted visitors in our office in Menlo Park recently. We're welcoming to visit us here in the Silicon Valley when you're available. You can witness our vehicles, the technology at work, first hand, and I think it really gives the sense of the potential of this technology. We'll be participating in the virtual CEDOTi MicroCAD conference next week and look forward to speaking with many of you there.

Thank you all for your time today, we're always open to a conversation with investors.

Pleased to have hosted visitors in our office in Menlo Park recently.

We were coming to visit US here in the Silicon Valley when when you're available you can witness our vehicles. The technology worked firsthand and I think it really gives us a sense of the potential of this technology will be participating in the virtual Sidoti Microcap Conference next week and look forward to speaking with many of you there.

Speaker 7: Please feel free to reach out to us or our investor relations from the equity group with any additional questions. We look forward to speaking with you all again in our next quarterly call. Thank you very much.

Please feel free to reach out to us or our Investor relations firm the equity group with any additional questions. We look forward to speaking with you all again in our next board somebody called Thank you very much.

Thank you. This concludes today's conference all parties may disconnect have a great day.