Rekor Systems Inc. Q1 2023 Earnings Call
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I want to remind you that statements made in this conference call concerning future revenues results of operations financial position markets economic conditions product and product releases partnerships and any other statements that may be construed as a prediction of future performance or events are forward looking statements such statements involve known and unknown risks.
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non-GAAP results will also be discussed on the call. The company believes the presentation of non-GAAP information provides useful supplementary data concerning the company's ongoing operations and is provided for informational purposes only.
And now I want to turn the presentation over to Mr. Al N CFO of recourse systems. Please proceed.
Hi, everyone. Thank you for joining us to discuss our results for the first three months ending March 31st 2023.
We're excited to share our continuing progress with you.
Oh, President and CEO , David Harney, He's on the call with me today together with our CEO .
Uh huh.
David.
Are you on recent developments, you know business and all that would provide the summary and closing remarks.
First I will go over some relevant metrics.
As indicated in our comments last quarter given current market conditions, we continue.
We need to prioritize our airports and investments in near term execution versus longer range development.
And continue our efforts to accelerate growth in recurring revenue.
He says it resulted in continued growth in both New York nonrecurring and recurring revenue while at the same time, our recurring revenue as a percentage of total revenue is increasing.
This is a trend we believe will continue as we concentrate on the significant near term opportunity we're focused on now.
The percentage of recurring revenue reflected in total revenue was 68% for the three months ended March 31st 2023 compared to 57% for the three months ended March 31st 2022.
This provides us with a solid foundation of strength and stability over the long term and being achieved despite the streamlining measures. We made during the last few months, it's 2022 and into this year.
In the first quarter was 2023 was so significant reduction in our cash used for operations for $12 $3 million in it.
Three months of 2020, 229, and a half million dollars in the first three months of 2023.
Furthermore, in the first quarter of 2023, the company made one time payments for accrued accounts payable from 'twenty to 'twenty, two and especially in those days.
Resulting a true cash burn of approximately $7 million.
In addition, the full effect of the additional reductions we made in the first three months a year would be reflected in the second quarter of 2023.
We also incurred a high level of research and development expenses in the period as we completed and began production deployment.
Clock speed offering four departments all starts with patient as David will discuss later.
Now let me highlight some other details in the financial results for the three months ending March 31st.
2023 and some more recent developments.
Revenue for the three months ended March 31st 2023 was $6 2 million.
Compared to $3 million.
Same period last year, a significant increase of 108%.
And generally when it's weighted three we finalized the $15 million senior secured note those auction led by our CEO Billy.
In March 'twenty, 'twenty, three we finalized a $10 million.
So direct offering priced at the market I'm doing Nasdaq rules.
As I mentioned earlier.
They're just recurring revenue continues to increase.
Recurring revenue for the three months ended March 31st 2023 inches by two and a half million dollar compared to the same period last year.
This represents an increase in recurring revenues.
48%.
Performance obligations increased to $24 $3 million as of March 31st 2023, compared to $21 4 million as of December 31st 2022.
Adjusted EBITDA for the three months ended March 31, 2023 and.
2022 was steady at $2 $4 million.
We continue to take a disciplined approach on operating expenses and are evaluating our dogs carefully.
The first quarter of 'twenty to 'twenty three as an increase in operating expenses compared to the first quarter of 'twenty to 'twenty two.
Two higher depreciation expenses and the addition of key employees as part of our S. T S acquisition.
However, adjusted gross margins for the comparable periods improved and increased to 53, 6% from 48, 3%.
We also experienced one time expenses associated with professional fees and we're making significant investments in the completion deployment and implementation of our new.
Urban mobility offerings.
We will continue to manage our expenses and cash while investing in our growth and expect to see continuing effect full our streamlining efforts.
The increase in our adjusted gross margin was primarily attributable to a higher mix of software revenue.
Continually working to improve our margin by implementing new technology to further drive down costs and increase our margin.
I've also been providing you with enhanced key performance indicators to give you a more detailed view progress and better insight into our business over time.
We want you to be able to not only measure of our success at winning new contracts by the value in the long term value of those contracts in terms of their contribution to our performance obligation.
During the three months ended March 31st 2023, we won $12 $1 million of new contracts compared to only one and a half million build out.
Total new contract value one during the same period in 2022.
This represents an increase of $10.6 million or 692% compared to the three month period ended March 31st 2022.
As of March 31st.
Three our remaining performance obligations amounted to $24 $3 million.
Represents an increase of $2 9 million or a loss of 13, 6% compared to $21 $4 million hopefully mainly performance obligations as of December 31st 2022.
We expect to recognize approximately 67% of the remaining performance obligations as of March 31st 2020.
23 over the succeeding 12 months.
Moving to our financial condition and liquidity.
As discussed above in January we completed the closing of the senior secured notes in the aggregate amount of up to $15 million led by a C O although that was.
We spoke dissipation from other new and existing investors.
It's closing 12, and a half million dollars was funded.
In March 23, we also completed a registered direct offering full $10 million.
This transaction gave us the liquidity, we need it to continue and execute our strategy.
Our cash balance at March 31, 2023 was $12 $1 million, an increase of one 9 million.
The 31st 'twenty to 'twenty two.
Our working capital as of March 31st 2023 was $7 million up from a deficit in working capital of $6 2 million.
Number three the first 2022.
The increase in working capital was primarily due to an increase in cash and cash equivalents and accounts receivable.
To sum up we are confident regarding recourse growth prospects, because we are experiencing strong momentum all of our key markets and we have been addressing the most prudent ways to capitalize on those prospects by continuing to raise the funds three months administrative expenses and focus.
Our investment in product or near term revenue from.
From your seat opportunity.
As you will hear from David in just a moment, we are taking a strategic approach.
Knowledge investments focusing on rapidly increasing our margins to maximize profitability.
Our revenue continues to grow and our efforts to concentrate on sales with the current revenue continued to be rewarded.
Recurring revenue in the first quarter of 2023 was more than double the level in 'twenty to 'twenty two.
Much of this was due to our acquisition of last year and the synergies of this acquisition are becoming a parrot.
The first quarter of 'twenty to 'twenty three also marks the completion and initial customer deployments of a new set of offerings designed to meet the pressing needs of large departments of transportation full roadway data that is more advanced and safer to collect.
With more with proven success in this area. We are now well positioned to secure additional long term contracts from loud to D O Ts and expect to see sustained growth in recurring revenue during 2023.
With this focus we also fully expect to see significant improvement you know my views in the future.
As such we maintain our revenue guidance for the fiscal year 2023 to be in the range of $45 million to $55 million and living with an EBITDA loss of $26 million to $28 million this year.
The ability by the end of 'twenty to 'twenty three.
Recall remains fairly committed to creating shareholder value and making decisions that will benefit our long term shareholders.
We are dedicated to delivering consistent growth and are excited about the opportunity that lies ahead.
Thank you for your continued support as we work toward achieving our goals together.
With that I will now turn the call over to David David.
Thank you al good afternoon, everybody.
Recall continues to make progress and build momentum across all three of our primary business segments.
Specifically number one is our urban mobility segment.
This segment of our business includes our leading AI based vehicle classification couch and speed technology for departments of transportation.
As well as our ability to uniquely monitor and measure transportation greenhouse gas emissions roadway volume electric vehicle recognition and multiple other real time mobility analytics.
Number two is our transportation management segment.
This segment includes our AI powered incident detection and traffic management capabilities targeting departments of transportation traffic management Center in Metropolitan planning organizations.
And third.
Our public safety and licensing segment. This is where we first began our foundational and advanced work in AI machine learning and computer vision, and where we license our vehicle recognition technology to public safety tolling transit and commercial customers.
During the first quarter, we achieved many significant milestones, including advancing the state of the art.
Of our AI based technologies launching new breakthrough products deepened.
Deepening our relationships and partnerships across the ecosystem and adding significant new customers across each of these business segments.
First starting with the urban mobility segment.
In Q1, we rolled out our new record discover platform.
Using our artificial intelligence record discover.
All the automate the safe capture a federal Highway administration 13 vehicle classifications vehicle counts and speed.
Rising high resolution video streams to deliver ground truth traffic studies.
Our edge based Iot network devices are deployed at the roadside.
They utilize AI and machine learning to automatically analyze live video stream of active traffic to provide powerful roadway intelligence.
This is a big deal.
Hi.
Cause it's recourse immediate path to driving massive scale.
Our revenue growth and profitability.
Already in Q1.
Were awarded multiple and multiyear D O T statewide traffic count and classification contracts with South Carolina, Florida, Ken.
Pennsylvania, Mississippi, Alabama.
Hyatt departments of transportation.
With strong forward momentum and a significant pipeline ahead.
Switching gears to our transportation management segment and.
In Q1, we.
We delivered and announced our new record command platform.
Setting a new standard for the future of roadway management with a breakthrough AI driven roadway intelligence platform.
It provides departments of transportation and traffic management sensors real time, and holistic view of what is happening on the roadways.
But the launch of our new platform, we were proud to be joined by AWS as a foundational technology partner as well as the state of Texas D O T.
Our fastest growing state in the country, where they shared that our new record command platform is that the core to helping them absorb and adapt to significant increases in population and drivers and to more quickly identify and respond to incidences enhance traffic incident management improved traffic flow.
Minimize the risk of secondary accidents, and enhance safety for roadway users and emergency responders across what is by far the largest network in the United States.
In addition.
This quarter.
North Carolina Department of Transportation secured a significant smart Grant award for the implementation of our new record command platform.
Along with our unique connected vehicle ecosystem.
It's automated actionable road and other anomalies project.
Yeah.
And finally, when it comes to our public safety and vehicle recognition licensing business segment.
We continue to see new and significant progress here as well.
Some highlights from Q1 include deploying our technology with a large U S Federal agency for public safety.
Securing the largest scale statewide vehicle recognition and roadway intelligence system deployment and Mexico's history.
Winning six flags one of the world's largest theme and waterpark operators.
As a customer across its property.
Spanning Las Vegas Palm resort casino as our eight major resort casino customer strengthening our position as the leader in gaming and hospitality segments.
Licensing our vehicle recognition solution to one of the largest parking parking operators with over 15000 customer locations across all major U S cities in Canada.
And.
Entering into a multiyear licensing agreement with safe fleet for our AI based vehicle identification and license plate recognition technology at the core of its next generation violation detection platform for transit.
<unk> enforcement.
As well as school bus arm violation detection.
Working with Fe fleet, we are already being deployed in two of the largest metro areas in the United States.
Thank you all for the opportunity to discuss <unk> progress and potential as you can see from my remarks, our Q1 achievements demonstrate the significant momentum and progress we are making in delivering new cutting edge innovation and providing value to a diverse set of customers across each of our business segments.
Thank you for your continued support.
Forward to updating you on our continued future progress.
At this point I will turn the call over to Mr. Robert Berman, CEO and chairman of record for final remarks and Q&A.
Robert.
Thank you David and welcome everybody appreciate you joining our call.
Before I open the call up for questions, Let me underscore what David said earlier announced context.
Record discover is as David said, our path to massive scale and revenue.
Demand over the next decade for new permanent data collection sites is estimated to be in the hundreds of thousands which includes replacing tens of thousands of decade decades old existing legacy systems, providing antiquated limited and then adequate data.
And in many instances they are no longer Eaton operation.
Once our AI is deployed in addition to providing highly accurate always operating count class and speed.
We become the Iot nodes necessary to build the roadway operating system.
And networks.
Yeah.
Now I'd like to open the floor for any questions. You may have please don't hesitate to ask we're here to provide transparency and clarity and we're eager to address any concerns or inquiries you may have.
Operator.
Yeah.
Thank you Sir we will now be conducting the question and answer session. If you would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate that your line is in the queue. You May press star two if you would like to remove your question from the queue for any participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys.
One moment, please when we poll for any questions to that.
And the first question comes from the line of Zach <unk> with B Riley Securities. Please proceed with your question.
Yeah. Thanks, Hi, good afternoon, congrats on the solid results and thanks for taking my questions.
First question I Havent really how should we be thinking about the revenue ramp in terms of getting to your guidance for this year.
In terms of just the overall mix of recurring versus kind of onetime in nature in transactional revenue.
Zach, it's Rob and I'll take the first part of that.
We are.
And all three segments moving towards.
Hopefully, 100% recurring revenue.
That's what the products that we've launched do and that's the way we price them.
With respect to urban mobility, we have two pricing models, we have pay for data model.
Which is where the dot's pay for the data.
And we install and maintain the equipment that's roadside.
The other way is that making some states have to buy their procurement, which allows them to buy hardware and they pay a maintenance software fee, we don't yet know what the mix.
Pay for data versus.
We're just in the hardware maintenance software free we have a feeling that it's going to skew more towards pay for data.
So on the hardware sales side, the revenue would be higher upfront because they are paying approximately $18900 for in the system and are paying a few hundred dollars a month of maintenance and software.
On pay for data they are paying north of $800 a month over a long term contract. So that can have an ebb and flow of what the time looks like both have recurring revenue components to it.
With respect to record command as David has repackage, what many of you on this call $4 million.
Wake her.
That is a SaaS product now we back the data out of it. We include the data we charge a management fee, but the software is a SaaS product.
And with respect to you know our licensing and product, which is primarily public safety and other.
As all SaaS. So I think the trend that you see this quarter will continue and each quarter going forward the percentage of recurring revenue every quarter we have.
Moving forward, we'll will increase from where it is today.
And along with the margins or.
Anything you'd like to add to that.
Yeah.
No you hit all.
All the points over so all recurring revenues moving forward.
Due to the increase again depends on who makes a place where data will always have a a part of nonrecurring nature from other segments of the business like licensing and the other one we are we are.
It's a little bit differently, but the urban mobility.
Painful data.
Regardless of what that the D. O T decides Ah would have a significant a recurring revenue component to it. So we anticipate this to continue the growth in the majority of them to come to.
And I think sac to be Frank the.
Of the three segments and they will not change so everybody. That's been following record for time now over the last few years. This is what we are this is who we are there is no more evolution.
These are the three segments.
We expect that urban mobility will scale.
Probably and outpace the other two.
Segments, although traffic management likely in a year year, and a half time, well start to keep pace in licensing and product has been scaling well what you can see from some of the contracts we sign.
In Q1 of this year.
Understood. That's helpful and then in terms of your path to profitability.
Seems you continue to reduce cash expenses and streamline operations.
How should we think about.
Potential cash needs I know at one point you were considering strategic investment is that something that's still on the table or do you feel like you have enough cash on the balance sheet right now to make it to profitability and cash generation.
We think that the.
You know we're on a good path here I mean, you can see that the true cash burn in Q1 was seven a little bit under $7 million.
And as Al said the full.
You know <unk>.
Results of some of the other cost saving measures. We had in Q1, we're not going to be felt in Q2.
So the delta between the cash we have and profitability is not all that great. It's shrinking.
So we have a number of options that we're looking at but we're very confident that we're gonna be a be able to get there I do want to say that we spent a lot of time talking to a lot of different companies.
We came to the conclusion that we need to we need to maintain our independency.
And we work with over a dozen different very large large multinational companies right now are primarily in traffic management and we didn't want to foreclose the ability to work with others by choosing to work with one so look we've made it this far we think will make it the rest of the way it's trending the right direction and we are.
We're going to get there.
Understood and and finally, Robert I mean, you were mentioning a little bit more about kind of the displacement of some of these legacy traffic data collection sites.
Do you feel like that that's really the greatest opportunity here in the near term is just replacing some of these legacy collection sites with with your new platform or just talk about that a little bit more you know satcom I'm glad.
I'm glad you asked right. So this is kind of like one of these you know Warren Buffett type of businesses I mean, unless you're you know watching recall are listening to this call you know who the hell thinks about you know collecting traffic data.
So the federal government for more than six decades now has been mandating the collection of what we call count question speed and as David mentioned earlier, that's the FH W 13 or something.
And they have to do with year end and year out and Thats the way the federal government Redistributes gasoline excise taxes on appropriate highway funding based on where the traffic is it must be done and has to be done and the way. It's been done for decades and is using mechanical counters.
Which are dangerous and inaccurate and then induction loops, which required digging up the roads.
Creating congestion and traffic in their own right and they're very expensive.
Right. So this is an industry that is out there the fundings there and it's not like we have to go convince somebody to buy a better mouse trap. This is something they are doing day in and day out we're not asking them to pay any more for we're actually giving them a more efficient business model and they must do it right and I think that's the most important thing here and there.
There are literally hundreds of thousands of sites across the U S. In every state. Okay that are not functional right now that arent being used there are other places where the states adopt portable counts, but because of the traffic on the road, it's no longer safe to do portable counts. So they'd have to put in the permanent site and what we're really competing.
<unk> with its not other technology, we're competing with a 60 year old induction loop system, which requires digging up the road and putting in.
This legacy system, that's been around for ages.
So this is a massive massive opportunity and you know we said earlier that there is demand for hundreds of thousands of these and look it's not just the U S. I mean, you know countries around the world do some form of count classroom speed.
Enough business in our backyard, we're not thinking about that but that's the way it's done.
And it has to be done and now with the transportation Bill the federal government is looking for even more information out of the states and again from count class and speed and Thats, the beauty and for those who would be the familiar with recall, we've always said single system multiple missions well, we can do count class and speed. We can tell you what the emissions are on that road.
The way, we can tell you what the weight motions on that road, what we can tell you where the electric vehicles are.
100, other things without going back out to the site right. So those of you that know our unit program in Oklahoma, If states want to move towards contactless compliance for congestion pricing, we just turned it on if.
If they want something else, we just turned it off and that's that's the beauty of it and then if you think about the traffic management component of our business. It's the ground truth data that we pull on for the record one platform.
The value to all the third party data, which is what makes it all that much more accurate with regard to being an operating system for the road was so look we've been for several years now is that searching for how to get these iot nodes on the roadway.
And you know we went to law enforcement, we put systems out.
Putting systems out any which way we could and we finally realized that this market for us.
Collecting traffic data for the D. O Ts was there and it's just one of those things that most people don't think about Oh about care about.
But it's done day in and day out and D. O T spent hundreds of millions if not billions of dollars doing this year in year out so it's a big deal.
We're not competing against any other technology. This is pure disruption this.
This is pure disrupt you're using AI and edge processing roadside and solar.
And a combination you know cloud hybrid.
<unk>.
Our cloud device, you know transmitting metadata and youre, giving the DLT is more we can set a system up in two to three hours roadside where an induction loop takes you know maybe two to three months and if you think about the cost and an induction loop, which was done by the company. We acquired STS have put in one hundreds of those through the years you know there.
$450000 same thing with way emotion, okay, because our technology does that weigh in motion site per lane on a roadway is $100000. Okay and takes a long time to install and creates a lot of happening when you do it. So this is really a big deal and it ties the pieces of our other business together.
And that's what creates the operating system, that's going to be necessary to deal with the advancement of how smart cars.
Right. So when you hear people talking about connected vehicle Carter's autonomous vehicles and all these other things.
The structure has to play a part in that has to be able to communicate with the vehicle and the D. O T is have to be in the middle of that so that they can make sure everybody's safe.
So this is a big deal we figured it out we got there we saw STS we found them.
Give us the credibility to go on to the <unk> and we have adoption.
Okay. So we're installing units in South Carolina were installing units and all the rest yes states, we're talking to over 40 D. O Ts right now we can't even get to them.
Okay. So you know this is really a big deal for us and that's what's going to scale and everything else that comes along with it is kind of a follow up behind.
But it'll have you been more value a couple of years out when those things tie in and you know because this is such an important question I want David.
And so on here David would you.
Yes, absolutely.
Something that we're seeing in terms of it being disruptive to demand for the technology because it's safe.
To install because it's fast to install because the economics associated with doing class counts. Each studies is wildly less than would be traditional methods. The demand has really been.
Really unhindered and so when we look at our pipeline when we look at the technology the ability to adapt.
Support with the deal teams are meeting for it today. So the here and now but also the future proof of where they're doubling over the next year or two years three years as <unk>.
Now, they're being mandated to look at greenhouse greenhouse gases and right now they're being mandated to look at total tonnage on a on a roadway and that the systems that are being deployed are already capable and can extend to to meet the needs are again for today and also tomorrow. So as Robert said, it's quite disruptive and we feel like cap.
We've got.
No that's right to win with technology, that's been crafted and honed over the last several years. So it's a good spot to be in.
Yeah, and you know Jack one last thing that I would like Tad you know because ive seen named chair of people that have been following the company for years, we wouldn't be here, but for the proficiency of learning to recognize the vehicle.
And then make model and color, okay, and accuracy and give the vehicle signature and figure out how to put that algorithm together with a processor work roadside with low power so that it could be solar.
So that youre, not inhibited by not having fiber or other types of power.
So it's all of that that led to this that's where we were driving back then and you know we were working towards us, but that's what gave us the proficiency to do what we do this is not something that's easily replicate them all and there's really nobody else out there that's even thought about it frankly.
So hope that answers your question.
No that was great. Thank you so much for all the incremental color and best of luck with the rest of the quarter.
Thank you appreciate it Jack.
And the next question comes from the line of Mike Latimore with Northland Capital. Please proceed with your question.
Hi, this is <unk>.
On behalf of Mike Latimore.
Can you give some color on what are the major driving factors behind the bookings in the quarter.
David do you want to take a shot at that.
For the for the bookings in the quarter, Yes, I mean, so it's a combination of multiple things in and across our lines of business. We.
We have going going concerning and growing business in our public safety and licensing so where we've seen.
<unk> growth is the the the bookings on multiyear deals and licensing agreement with a large.
U S based.
Is that R. R ranging from theme parks that are looking to put a safety component and a customer experience component on there.
On their parking lots and roadways going in and out of a out of their sites. We've looked also we were able to lock and load on additional gaming company and so where we've we've had I'd say.
Very good success from a gaming and casino market segment or or retail or hospitality segment. We see continued growth of that segment as well our multiyear bookings there.
Our traffic management Oh.
The traffic management vertical or market segment for us continued growth there as well and expansion of contracts and then last but not least is in our.
Urban mobility space with the.
The.
Addition of multiple states that have come on with multi year contracts that are three and four and five year contracts.
The millions of dollars of a performance obligation bookings as you call. It and so I mean, it's really a combination of all of those factors. So each one of our business segments have seen significant growth in the quarter and again continue to see that moving forward as well.
You know I think your colleague Mike Lattimore met Dave It out at Ips recently and had the opportunity to speak to one of the D O T officials from Texas.
So he might be able to give you some insight to that but one thing David that I mentioned and I just wanted to congratulate David for this because.
One of the things we were able to do in the last.
I'd really say its more like nine months to a year since David has been here, but our software has been embedded in hardware being made by like companies like safely.
Hayden AI, but if you look at say fleet. They are fairly large U S based maybe Canadian base.
They have over a million 600000 devices al on the roadway across the U S and Canada.
Primarily public safety and those are older generation products are software isn't the new cameras coming off the assembly line that they are deploying now.
In places like Chicago, and I think in some of the cities in San Diego and so on and so forth and urban mobility is the footprint that we have within the existing STS footprint that we acquired that gives us the initial.
Gail right and then you know we've got.
Discussions going on now I think was close to 40 dot's.
Trying to get to.
Alright got it and also could you give some update on what's happening with the Master card breakthrough initiative.
You know.
We always get asked about Mastercard I always get emails and so that my colleagues here from shareholders attend this because they see this <unk> did this and that one did that Mastercard is still working out their product that they call Julia.
Julia is a comprehensive replacement for the typical fast food operation drive through so it includes a lot more than just what we do which is recognized in vehicle pay by plate and so forth.
Includes voice recognition, which is done by our colleagues sound town.
What it also believe it or not it includes mechanical devices inside the kitchen and help move things along in the kitchen.
And you know we.
We continue to work with Mastercard and you know we're deploying pilots for that.
They put a lot of time and effort in that and we hope they're successful with it and I know a lot of people were very excited about it.
I will say this all the people a couple of years ago that saw Mastercard that we're doing the math of tens of thousands of drive throughs well you can do the same math, except it's larger when you talk about you know what we're doing with it there or similar device somewhere cost structure similar business model because it's pay for data, we're actually getting more money out of it.
Right with what we're doing now with with the states. So we hope they make it right. We're there we're working with them we support them, they're working hard at it we have no idea, but it's not something we think about every day because.
Until it turns into revenue, we can't really speak.
Speak to it.
Alright, alright, thank you.
Thank you.
Operator, I don't see any more questions. We don't want to leave anybody out here or are there other questions Hum antibody.
Yes, if anybody has any additional questions and you'd like to ask please press star one on your telephone keypad, a confirmation tone will indicate that your line is in the queue.
My mom and ask your question now.
She now for any additional questions.
Okay.
We're always saying there's people that wanted to ask questions that we didn't get a chance to sort of ask now please.
And I would like to turn the floor back over to Robert Berman for any closing comments.
Yeah. So look first of all thanks, everybody again for joining the call. Thanks for your support Thanks for your continued patience again I see names here that I've seen for years. Thanks for staying with US we're not going to let you know record is here record has developed its business segments.
Our products now have been product cost thanks to the work that the team has done here.
And we see a clear path to substantial scale and profitability and tremendous growth and just a really amazing future and this is probably since.
Since my being involved with the company. This is the most exciting time that I've ever seen for this company and and it's around the corner. So thanks again for joining the call and we look forward to talking to you soon.
Yeah.
Thank you everyone. This does conclude today's conference you may disconnect. Your lines at this time. Thank you for your participation and have a great day.
Yeah.
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