Q3 2022 Canoo Inc Earnings Call
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Ladies and gentlemen, thank you for your patience. This webcast will begin momentarily. Please continue to hold thank you for your patience. This webcast will begin momentarily. Please continue to hold.
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Greetings and welcome to the.
<unk> third quarter 2022 earnings call.
At this time all participants are in a listen only mode.
A question and answer session will follow the formal presentation. If anyone should require operator assistance. During this conference. Please press star zero on your telephone keypad. Please.
Please note this conference is being recorded.
I will now turn the conference over to our host could not Butler senior Vice President of corporate development and capital markets. Thank you you may begin.
Thank you and welcome everyone to <unk> quarterly earnings Conference call.
Today, I have with me Investor Chairman and CEO , Tony Uncle Al along with interim CFO and Chief Accounting officer rematch monthly.
Tony will provide an update on the business from Nashville been run through our financial results for the quarter, turning it back to Tony for his closing remarks.
Then open the call up for questions.
Please be advised we may.
We make forward looking statements based on current expectations.
These are subject to significant risks and uncertainties.
Actual results may differ materially.
For a discussion of factors that could affect our future financial results and business. Please refer to the disclosure in today's earnings release and on our most recent Form 10-Q and 10-K. Other reports that we may file with the SEC, including warranty case.
All of our statements are made as of today and are based on information currently available to us.
Except as required by law, we assume no obligation to update any such statements. During this call we will discuss non-GAAP financial measures you.
You can find a reconciliation of these non-GAAP financial measures to GAAP financial measures in today's earnings release, which can be found on the IR section of our website.
Now please navigate the webcast landing page and access the video link towards the bottom left of the page we will.
Briefly while you watch the video.
And now I'll turn it over to Tony.
Thanks, Danielle and welcome everyone to the call.
You all for joining.
Speaking to you today in the midst of global economic and geopolitical disruption the market and sector are under pressure and.
And these growing pains are compounded getting the large groups of younger companies.
I've said this before our team has weathered this type of environment successfully in the past we have been through the tech bust.
<unk> global financial crisis and others.
Our strategy is bearing out and we will speak more about it today.
We are a large investor compared to our peers focused on creating long term shareholder value and sometimes you take more pain on the front end.
So we're going to have a bit of a different approach compared to others in the space.
Our Big News Youre No news approach is deliberate.
Keeping our cards close.
In a competitive market sector.
Today, I am going to connect some of the dots.
So you can see more clearly our strategy as we get even closer to S&P.
We have stayed focused on creating unique IP.
Increasing our patents by 13% to 205 total patents in the third quarter.
We have made the decision to manufacture domestically in the United States very early on.
And we expect to achieve a 20000 unit run rate capacity in 2023.
<unk> net capacity in 2024.
We had.
Over $300 million invested in machinery equipment and truly finished gamma build phase with 108 children vehicles built.
And remained focus on the startup production.
We are pioneering aspects of the automotive business model compared to both traditional and recent approaches some of this is becoming public now.
We have more and we will continue to release it overtime.
We were ready for the inflation reduction.
Or I or a <unk>.
And are leveraging our platform that is 92% sourced in the U S or Allied nations targeting high grade commercial customers, we are already position to choose who we partner with.
19 months since taking on the CEO will be our.
Our strategy is starting to come into light, we've made moves which you may not have understood at the time.
But they put us ahead in.
Flight of the <unk> Bill and now you see other scrambling for alternatives.
We've been strategic in sequential in our actions to set up the building blocks for our long term growth value creation and successful company.
We focus on a use case driven technology platform architecture and.
And we finalize the M. P P. One platform and derivative products, the <unk> and the Lv with third party validation, including real world deliveries.
One of our customers.
We have put a lot of work into making the MPP warranted a foundation for our business. We are capable of producing 60000 units of RMP Piedmont in future quarters, I will explain why that is important.
We invested nearly 1 billion in the creation of Canadian technology, and now have over 205 patents.
Early on we changed our business model to develop IP for ourselves not others.
That has materialized into significant inbound interest as of late in licensing and strategic partnership opportunities.
Which we are currently evaluating more to come on this in the future, but our focus is launching our own brand and secondarily Chris.
Sealing dose possible partnerships.
From the start we've been focused on sourcing parts from America and Allied Nations.
Followed by a focus on domestic manufacturing this isn't just patriotic it is good business sense.
And supply chain control helped position us well for the recent past IRA.
We developed partnerships.
With two states in the sovereign nation, Oklahoma, Arkansas, and the Cherokee nation.
We are making significant investments in these two states and will create an estimated 3004 hundred new high Tech American jobs to attractive investment these jobs and the significant economic impact they can bring over many years, Oklahoma Arkansas.
Local partners have offered us now.
Rising to $485 million in total incentives.
Thanks to Governor State Governor Hutchinson their economic development teams legislators and the partners in both states.
For their continued support.
In this phase we have focused on large strategic customer commercial orders.
Securing high grade credit commercial customers as well as our landmark NASA contract and further expanding our Tam into the rapidly growing as we can all now see government and defense opportunities.
We received the U S Army contract for analysis, and demonstration and service expects to begin experimenting at camp greatly.
This month.
We will deliver the vehicle.
On schedule.
And with even greater functionality a record breaking 140 days since we signed the contract to delivery.
We are working on other government related projects that leverage our unique.
IP and are continuing to develop IP and we will share more in the coming quarters.
As you know we also selected a proven battery partner and Panasonic and are honored to be selected as their second partner in North America. Besides Tesla.
Yes.
You have been patient and we appreciate it and today, we announced our phase III manufacturing strategy.
We previously announced a battery production facility earlier this month.
In the mid America Industrial Park with a high highly automated high speed production line.
Today, we are pleased to announce that we have entered into an agreement for the purchase of a vehicle manufacturing facility in Oklahoma City.
This is a 120 acre facility with existing production ready infrastructure is strategically located.
And can close.
And as close to on ramps and off ramps has all of the transportation and ecosystem infrastructure, including rail.
We are planning to ramp to a 20000 additional initial annual run rate capacity in 2023 and up to a 40000 annual run rate capacity by 2024 with opportunities for expansion.
These two facilities underpin our phase two manufacturing plants and provide us the scalability.
And rapid ability to deliver vehicles to our customers in 2023 and bridge us to Omega micro factory and prior.
The Mega Micro factory will now be on a separate capital track more to come on this in the future.
Oklahoma City Mayor, David hoped and the city's economic development team are outstanding advocates for their hometown.
SLP starts this month with our contract manufacturing partners.
Our own equipment. Following these initial builds we will been aggressively shift all our equipment and focus to our new facility during Q1 and Q2 of 2023 as we start production.
We expect the first sellable vehicle deliveries to occur in the back half of Q1, and we will ramp production in two age 2023.
To 20000 units run rate by year end.
Moving on to software another differentiator for Canadian So let's talk in house developed software.
We have a lot of experience in developing software for this industry.
In our other.
And previous.
Investments, we have deployed and are actively supporting our customers' mixed fleets today.
94%.
Electrical devices on the vehicle can be updated over the year.
We have deployed 200, plus successful OTA updates to our fleet.
2500 class remote commands.
Have also been successfully deployed across the fleet.
We collected 150 data points and signal her second during customer test.
Cycles.
Which resulted in 121 million data points per vehicle, helping us drive opportunities to reduce our bond increase functionality improve our data products analytics and improve the efficiency of the workflow for our partners.
We are focus on defining new types of business. We are not focused on the traditional 100 year old OEM model.
Our complete technology platform is a sermon harmonized and articulated here in house. This is a standalone business for us going forward with many ongoing discussions as mentioned prior.
The software code has been developed in house and allows for a secure flexible and upgradable platform that can remain fresh across the cycle since taking over we moved from outsourcing to in sourcing.
That is IP creation.
We focus on use case based software driven approach we are building an ecosystem that creates a high return on capital as we have done previously for our customers and open up new high margin revenue streams for us all.
Moving on to sales.
Between our commercial sales and our reservations production is sold out through 2020 for our order book growth over last quarter.
We have two plus $1 billion in total orders in our pipeline, we have grown our stage three contractual commitments to $750 million or 18000 units at 224% growth over the last quarter.
Including commitments from the VEBA for an initial binding commitment of 3000 units through 2024 and from can be with the binding order of 9300 American made electric vehicles. We now have 42000 units of stage two orders growing 50% 57%.
It will be the last quarter.
And over 50% of our orders are L. D b.
Versus 28% last quarter, we have also announced our virtual <unk> experienced on our homepage.
We are very happy to report that we had zero downtime during advanced customer road test programs.
Now let.
Let us move to an update from the field with customer road test programs, we need over 1400 delivery covering 4500 plus miles.
During peak and non peak metro and rural environments.
Over 41 days across two of these major metro <unk> and rural areas, 65% to 70%.
The remaining charge operating in 23 degrees to 110 degrees temperature.
Zero downtime and zero accidents.
Unnecessary fixes and maintenance were completed during the post delivery window.
Offering customers a very specific program so that their uptime can be appreciated and achieve their goals.
<unk> test programs have been a testament to our commitment and investment and extensive and rigorous vehicle and customer validation programs.
And we have received very positive feedback from users on aspects such as the right comfort visibility and workflow ergonomics.
We're moving from engineering the product can now manufacturing at scale.
Now we move to the next thing we have to prove.
We successfully completed our gamma builds and began homologation activities.
We have completed all required manufacturer.
Costs down and range.
Cost down and range testing and will be submitting our EPA application on Monday November 14th we received preliminary range indications of 200, plus based on testing at the at an EPA certified facility.
<unk> for other certification processes.
To meet standards for F N B S. S C. A R b and FCC compliant are also in process currently.
We are ready to start production, we are anxious about it we're excited about it we're focused on it for the lifestyle delivery vehicles with <unk> expected to launch on 11, 17, and we aim to complete final certification in the first quarter of 2023.
We're taking a disciplined phased expansion approach to bringing on capacity based on committed orders. This is now proving to be a very good move for us since the economy is now more turbulent and it's more difficult to sell vehicles one at a time.
As mentioned previously during the first half of 2023, we will begin installing our existing machinery and equipment into our new facility.
We will be phasing our expansion strategically by aligning our capacity with the committed order book, continuing our disciplined approach to accessing capital and capital allocations.
We will double our capacity and run rate from 20000 by the end of 2023% to 40000 by the end of 2024 and beyond as we bridge to our Mega Michael factory in Pryor.
While we are a bit delayed in prior due to economic reasons, we have accelerated with the Cherokee nation, our partnership and are able to launch the battery Assembly center in prior so jobs are ahead of schedule.
In that area, which is very strategic for many reasons.
Our manufacturing plan enables rapid geographic expansion and opportunistic joint ventures that we have track records of doing in the past globally.
As my last company, we expanded it to 96 countries.
We will discuss this more in the future.
The ltvs components.
Our below.
Below our goal at 1600, which lowers bom costs and reduces supply chain and build complexity without reducing the customer satisfaction. We are now ready to receive the tooling. We previously acquired and placed orders for outstanding equipment for our facilities.
Our plan is to build 15 production vehicles this year.
These vehicles will be allocated across our committed order customers, including.
Some two NASA and Wal Mart among others.
So the last two quarters had been very tight.
The macro economic has worsened.
Pushing the cost of capital higher and forcing us to accelerate our maturity and manage cost efficiently to achieve our goals.
We have been doing our best to manage cash continued access to liquidity and dilution.
We've reduced our cash burn by 25% over the last quarter.
And we will continue to shift the expense mix, increasing the ratio of capital spend to operating spend.
Which we will also focus on the financing on the assets of the financing front, we have secured an additional $30 million in a pipe and a note to be converted via cash or stock.
We are in the final phases of evaluating multiple options to finance the Oklahoma facility that has the <unk>.
Team has been working on for quite some time.
And last but not least we are in the final stage of the fixed asset financing facility for our machinery and equipment.
Now I'd like to turn it over to <unk> to give you more about the financial metrics.
Sure.
Thank you Tony.
Before going into our third quarter results.
Like to say, we are making strategic and tactical positions with a focus on long term shareholder value.
We are being conservative and diligent with our spend.
Monetizing the pads to startup production in a sequential progression that lays the foundation and building blocks for growth. So that we can scale at the right time.
Moving to the Q3 results.
Cash used in operations for the nine months ended September 32022.
$329 9 million compared to $186 million for the nine months ended September 32021.
Capital expenditures were $88 8 million for the nine months ended September 32022, compared to $74 million for the nine months ended September 32021.
Net cash provided by financing activities for the nine months ended September 32021 was $181 3 million compared to net cash used in financing activities of <unk>.
<unk> 4 million for the nine months ended September 32021.
We have reduced our R&D spend by 50% compared to Q2.
In the third quarter research and development expenses were $57 1 million compared to $59 4 million in the prior period.
Excluding $8 2 million of stock based compensation.
Research and development expenses were $48 9 million.
We also reduced our SG&A spend by 12% in Q3 compared to Q2. This is primarily due to our continued push to identify efficiencies and streamline our processes.
<unk> spend to align with the startup production.
SG&A expense was $48 8 million for the quarter compared to $45 5 million in the prior year period.
Excluding $11 3 million of stock based compensation SG&A expense was $37 $5 million.
GAAP net loss was $117 7 million for the quarter compared to a GAAP net loss of $80 9 million in the prior year period.
Adjusted EBITDA was negative 88 million for the year compared to negative $85 8 million in the prior year period.
Turning to our forward looking guidance.
We continue to be tactical and judicious with our spend and have revised our expenditure guidance for the reminder of the year by driving efficiencies as we move towards <unk>.
For Q4, we anticipate approximately 70 million to $90 million of operating expenses, excluding stock based compensation.
30 million to $50 million of capital expenditures.
We are now on track for a 40% reduction in operating expenses for the second half of the year, which is significant improvement compared to our previously disclosed projections of 20% reduction.
This aligns with the operating plan, we have laid out in this call.
To close.
We continue to be tactical and strategic with our spend while focusing on achieving sop.
We have a great product and a significant customer demand.
And we've doubled our order book to $2 billion and we've sold out through 2024.
<unk> machinery tooling and agreements for our manufacturing facilities in Oklahoma.
We have access to capital and we are on path to production or <unk>.
Customers will receive their vehicle applications in 2023.
Before we open it up to questions, let me hand, it back to Tony.
For closing remarks, Tony.
Thank you Ramesh.
Look I would really just like to again, thank all of the canoe believers and supporters out there internally and externally.
And.
It's a it's a big task to do what we're doing we're definitely punching out our milestones in a difficult backdrop and this is all about pushing through in the American spirit. These are the times when you make companies.
We got to prove that that's what we're focused on and I want to thank all of you for your support but we are determined.
No.
Thank you Tony operator, please open up the line for questions.
Thank you and at this time, we will conduct a question and answer session.
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Our first question comes from Amit Dayal with H C. Wainwright. Please state your question.
Thank you Andres.
Congrats on the order buildup in new customers by the way.
Just in regards to this new facility announcements.
Any risk of sort of double spend.
This facility announced today versus what you guys need to do.
Prior location.
No. So so the focus here.
As you know from the very beginning when I took over we were kind of working under the framework of the prior.
The business model.
And it had contract manufacturing.
Which was.
Currently slated to be overseas.
Obviously, we were against that is because we saw a forward curve on that so we pivoted got a different contract manufacturing, while we figured out we could get state incentives.
In order to and where we would have the best possible workforce for our long term business venture.
And so with that we.
We started to formulate that the governments and the military opportunities, we're going to be large, particularly for what our platform can do.
Which would kind of share soon.
But.
The whole long term plan would be that Oklahoma city would actually become a defense and specialty products site in phase II. So there would be no overlap.
And that that helped.
<unk> with Citi is known for its 1300 aerospace and defense companies.
We just saw.
Seemed like with everything the way it is that that opportunity had been cultivated.
We got an incredible pricing on this.
In fact, we made money on the buy.
And it's got room for expansion and its strategically located so.
Just on our current plan there will not be overlap.
Okay. Thank you for that.
And just going back to some of your.
Yeah.
Cost.
Loving efforts the sequential drop in R&D that we saw in <unk> versus <unk> is that part of those efforts or is it just a natural evolution of you guys getting closer to commercialization and R&D is now sort of behind you.
Yes, I would say, it's a little bit of both right I mean, I'd say some of it was us ramping down.
Some of it is.
Just us focusing in on lifting and shifting because obviously, Oklahoma City has now announced.
And our deepening of our relationship with Oklahoma.
As the state and city and prior so it.
Kind of.
Those factors driving.
Change I.
I do cringe, a little bit when I'm spending less on R&D, kabam, and big IP Guy but.
Right now it is the right thing for us to do this phase and.
And we have the right people focused on on on the innovation areas associated to the customers we're focused on.
Understood and just one last one from me sort of on the financing side I know you are.
Shooting for just in time type of.
Transactions to meet those needs.
What are the needs you have in terms of dollar amounts that are coming up.
We reduced staff.
Making these deliveries in the second half of the first quarter next year.
Yes, I think.
We're fortunate to have some good external.
Advisors.
People that are partner to execute we ran our ATM program successfully in a very very difficult quarter.
And we continue to to kind of focus on.
Focus on the execution of that because that kind of shores up the gap in our capital plan.
Because the reality of it is in need deals like this is on any given day. There is a certain number of events that occur as you go to <unk> or just not planned in the system. So that was kind of the reason, we really wanted to get the ATM moving and then we still got $170 million available.
And.
100 $190 million on the PPA.
Obviously, we're trying to be very very disciplined and in retrospect.
No.
You look at all of these companies that had all the money money money does not.
Equal security.
Would equal securities achievements and milestones.
And in tough times.
You got to learn how to manage leaner and more efficient makes companies better.
It's tough.
But.
Like we said earlier.
Lot of the people that come to join Canadian worked with me in the past and survive multiple markets.
<unk> successfully taking opportunities in those markets.
I think we are not happy to be in a high inflationary unstable.
Supply chain environment, but we see huge opportunities in globalization platform is perfect for it there are lots of cash in other markets.
So the opportunity for joint ventures like we've done in the past so the access to capital I know that bothers a lot of people.
And it bothers her mesh quite a bit frankly, but for me have been doing this multiple times.
There is two times.
In business.
That had been worried.
And that tells you how much Jen.
Generally always worried which is.
One when I have lots of cash because they know efficiency will go down.
And you gave a little careless.
And I think the fourth period is wearing off on people.
And now it's time to get back to competitiveness.
Okay.
In addition to that.
I think.
Being able to teach the crew here how to run a business on just in time milestone.
Capital is a very disciplined approach as an investor not just as the chairman and CEO I know it is painful but.
Would you rather give a young company a lot of money.
Or would you rather give it money based on milestones and the American way to proving that to be a successful model. We're very focused on it worked for me.
As I say I'm always one deal away from screwing up my track record, but.
We got $500 million in asset value.
And we will unlock.
And we will continue to access non dilutive capital I know today people do not appreciate that as in many things over the last 19 months.
But.
We are focused and we are in it with you so.
That's our approach.
I'm sad to see so many companies following falling on dire times, but I am proud of this team and the fact that we led the charge in bringing more financial discipline to these young companies and assets one of them.
Thank you Jeremy that's all I have forgotten the step back in queue I appreciate it.
I appreciate Ya man.
Thank you. Our next question comes from Bruce Chan with Stifel. Please go ahead.
Hey, good afternoon, everyone I appreciate the time.
Tony you mentioned upfront the economic environment and the impact that's having on your capital position and some of your costs, but from a.
Commercial standpoint, maybe.
You've got the Walmart deal you've had some nice incremental wins from <unk> are you seeing any slowing in the pipelines from customers that are maybe a bit nervous about the next 12 months to 24 months.
We are only focused on great a triple b credit customers right with secured funding because we would finance those pose.
At range that gives us favorable cash flow from when we start to predict those orders. So that's our agreements are that way.
Again. These are all things we signaled early when the market was more euphoric about individual sales and all that stuff. The cost is just too dramatic for a young company.
But.
We've managed to reduce pieces in the vehicle and not lose functionality in beauty.
Teams worked really hard on that so I think for US the pipeline is really good actually I mean people, calling in why because our price points great. A product has lots of space that people that use it love it.
You get employee satisfaction out of it.
And so far everybody we've gone against we've been blessed.
Blessed by God to be the winner.
And we're very focused on that and we will continue to do that.
And.
I think the demand is really now based to us we're going to be modulating customer expectations, which is the place you want to be in a bad economic cycle and you want great a triple B credit customers in your early evolution because they also teach you a lot about your product before you put it.
Widely and geographically spread across just individual consumers, who can get frustrated in new vehicle launches. We built one of the largest data companies, where the automotive industry and it still is to this day.
We've seen a lot of car launches. This is targeted this is focused to not waste our shareholders' money.
And be able to ensure we retain our customers.
Okay.
Super Helpful. And then maybe just a follow up you talked a bit about price point, Bob costs, we've seen a pretty material easing in supply chain fluidity and supply chain costs over the past few months container rates are now maybe five times or more lower than what they were.
Earlier this year is that strategically, causing you to rethink any of your near shoring or quote unquote <unk> activities and maybe start diversifying your sourcing at all.
Yes, so look we've been bringing.
Stuff into the U S for quite a while quietly.
It's been a it's been tough because we had to really rationalize our cash get our terms better.
With our suppliers. It's you know it's been a painful period as we kind of mature ourselves.
And.
These are these are part of the evolution as you go through but reducing the pieces without <unk>.
Taking the phone functionality way has helped us.
Manage the costs were still keeping our price point really good we've got room to bring it up and still be competitive we're squarely in the zone to have room with the federal incentives and state incentives.
For BB credits, so I think we've done pretty well.
There are still probably 100 more pieces I believe we can we can do and sub assemblies.
And improve our efficiency and effectiveness.
And we're going to be bringing in some very experienced people.
In that in the phase as we as we ramp that up in our manufacturing team. So we got a good start and the team will be focused on that team and bringing in people that are highly probable very experienced and multiple car launches.
Okay, Great I appreciate the time.
No worries, Matt and I would just close with the fact that.
We're significantly where 92% U S and Allied nations in the U S part is growing.
We've moved our development of all software in house.
We've taken away anything to do with China.
Done all of this stuff over the last 20 months.
And.
I think someday, we'll be seeing for it we just got to prove this next phase.
Probably the phase after that.
Okay.
Thank you just a reminder to the audience to ask a question press star one on your telephone keypad.
Our next question comes from Noel Parks with two older Brothers. Please state your question.
Hi, good afternoon.
I know.
Just a couple of things.
Now that you're getting.
Getting ever closer to the female ramp up in production.
On the way for such a long time.
Can you talk a bit more you mentioned it.
Earlier, but talk a little bit more about the allocation of production as you ramp up.
To satisfy the backlog of customers.
Just wondering if thats contractual or if it's essentially at your discretion depending on the on.
And the particular customer.
Yeah. So great question, So we said being watched many car launches.
And watching successful car launches getting struggled in production in our past.
We're very focused on upfront managing with our customers, how we ramp that you've got to have some.
Flexibility and your delivery schedule, if you great agreements, where youre contractually bound by extreme amount of units or set expectations, you're just going to make people upset. So that's kind of why we've been working the way we have been working.
Ben.
Highly confidential not even well populated within the company, but we're very focused on being able to make sure that we actually out deliver customer expectations rather than under delivering them.
Great.
Okay and.
And then just.
A couple of your recent customer announcements.
Hi, Bob.
The Candy agreement and also the one with the VEBA. So two sizable fleet leasing providers I Wonder if you could talk.
Or anything unique.
Xtra.
The color you'd like to give on maybe how much would be great, but in particular about the service component of them and.
How I guess whatever sort of maintenance obligations, you have beyond sort of rollout of of upgrades.
You know what that looks like in <unk>.
They are like a flat structure for per unit.
The service and maintenance or certain threshold that they have to stay below.
Yeah.
So I think for US we've got experience doing these things in the past and setting customer expectation in a year.
Forward period is extremely important because at the end of the day. They set a schedule. We are focused on professional use cases. So you can't you can't screw those up so.
You have to temporary and Walmart is incredibly savvy.
The <unk> team is impressive their growth trajectory is amazing.
And as EBIT.
<unk> is just really focused on a great business model and so we're very selective we believe we have a very unique product I mean to actually do what we didnt have zero downtime.
And.
To have such a resounding 100%.
Of.
The drivers enjoyed it.
And we exceeded their expectations so.
We're also focused on the majority of this being updated over software without the customer being inconvenience.
So.
It's really important that you do not over promise.
We got beat up in the earlier period.
Thus taking over.
As we tried to bring our own tempo into the business, but I think it's starting to calibrate itself all around us.
And.
Even though it's going to be a tough year, hopefully will be a bright spot in it.
Okay, great. Thanks, a lot.
Yes, I appreciate it Matt.
Thank you there are no further questions at this time I will hand, the floor back to management for closing remarks.
Everybody. Thanks, again really meant what I said about I appreciate everybody being our supporters and defenders, we're quiet heads down trying to get this job done we've got a lot to do we're going to focus on doing it and doing it to the best of our ability and I just wanted to say to the team that built this.
The screaming Eagle, which is the vehicle delivered to the military I have never seen.
Delivery of a vehicle in a 140 days by the way they completed a 100 days.
I just wanted to give a shout out to all of them Super proud Super privilege.
And.
Let's go.
You very much.
Thank you. This concludes today's conference all parties may disconnect have a great day.