Bragg Gaming Group Inc. Q1 2023 Earnings Call

Ladies and gentlemen, thank you for standing by today's conference call will begin momentarily until that time your lines will again be placed on music hold thank you for your patience.

[music].

Thank you for standing by my name is Kayla Baker and I will be your conference operator today.

At this time I would like to welcome everyone to the Brad Gaming group's first quarter 2023 earnings conference call. All lines have been placed on mute to prevent any background noise.

After the Speakers' remarks, there will be a question and answer session. If you'd like to ask a question. During this time press star followed by the number one on your telephone keypad, if you'd like to withdraw your question again press the star and one.

I would now like to turn the call over to Chief strategy Officer, you need Spilborghs you may begin.

Thank you operator, good morning, everyone and thank you for joining our first quarter of 2023 earnings Conference call I mean, even Spielberg Chief strategy officer for broad gaming group I'll be hosting today's call alongside my colleague Chief Executive Officer, Neil Sherman will comment on our first quarter's performance and <unk>.

Our CFO , who will review and discuss our first quarter results.

If you've not already done so you can follow our earnings call presentation from our website at investors talk broad stopped group and the section called latest presentation.

On this call, we'll review broad financial and operating results for the first quarter of 2023. Following our prepared remarks, we'll open the conference call to a question and answer period.

I started the call with some brief cautionary remarks regarding certain statements that may be made on this call certain statements made on this conference call and our responses to various questions may constitute forward looking information or future oriented financial information within the meaning of applicable securities law.

It's about expected growth perspective results strategic outlooks in financial and operational expectations opportunities and projections rely on a number of assumptions.

Turning future events, including market and economical conditions business prospects or opportunities future plans and strategies technological developments and anticipated events or trends and regulatory changes that may affect the corporation and its subsidiaries and their respective customers and industry.

While we believe these assumptions to be reasonable they are subject to a number of risks uncertainties and other factors many of which are outside the company's control and which could cause the actual results performance or achievement of the company to be materially different there.

Can be no assurance that these assumptions or estimates are accurate or that any of these expectations will prove accurate for complete discussion of these factors. Please refer to our recently filed the press release and other publicly available disclosure.

That behind Us I'd like to turn the call now to our CEO Neil Sherman.

Thank you Ian and good morning, I mean, even Sherman Black CEO and I'm very happy to welcome you all to our first quarter presentation.

Our first quarter of the year and marked another successful step in our digital quest, we continued to execute against our mission and strategic plan Complementing Our award winning I gaming proposition and a growing number of premium brag developed game titles offered to players around the world who are operating partners.

Our execution is driving persistent topline and cash flow growth consistent with our previously presented game plan, we continue to expand into new markets with new customers.

So far this year has been no exception.

We are excited to welcome new partners in Mexico, Belgium, Switzerland, Italy, Spain, and the U K.

Our U S rollout is progressing well and we've recently marked another key milestone with the launch of our newest tech stack and games launch in Pennsylvania, Our fourth U S state to date Okay.

They're more business and operational details shortly but first I'd like to elaborate about our recent financial key performance indicators.

Yeah.

Thank you Steven Good morning, everyone I'll begin my comments on slide six as you and Ive indicated earlier the first quarter of 2023 was another successful.

Digital journey, we've continued to execute against that mission and strategic plan and we can see that in our financial and operational results in.

In the first quarter total revenue was up by 18, four 1% year over year.

<unk> 9 million euros, the growth was mainly derived organically through our existing customer base launch in financial year, 2021, and 2022, which performed better than expected on the competence segment.

The new Onboarding customers in various jurisdictions in particular, the Netherlands, with three new customers turnkey solutions and content offering and the solid revenue performance from the Wall Street gaming studio and spin gains existing U S customer.

From an operational Kpis perspective, total wagering generated by the games and content offered by the group during the quarter was up by 35, 7%.

The same period in the previous year to $5 2 billion euros.

You can see from the Wagering chart on the right hand side, Brian So positive momentum since the effects of the inception of the German regulator restrictions on game play in the third quarter of 2021, which demonstrates our ability to transform and diversify our operations.

In addition, the total number of unique players using our games that constantly in the period.

Excluding whilst we can screen were up by 42, 8% from the same period in the previous year to $2 8 million.

The increase is associated with the significant improvement to our core content offering, including recent technical development, giving us a powerful competitive advantage.

Gross profit for the quarter increased by 22% to $12 2 million euros with gross profit margins, increasing by 170 basis points to 53, 5% the.

The margin increase is a direct risk factor for change in the composition of revenue derived from Pam managed services and proprietary game studios, which have no cost of sales compared to third party games and content, which has associated third party costs.

Adjusted EBITDA for the quarter was up by 28, 1%.

The $3 9 million euros with adjusted EBITDA margin, reaching 70% an improvement of 130 basis points from the same period in the previous year. The change in margin was mainly as a result of scale. It changes in product mix and higher profitability dot com with alongside with highest salaries cost is positive.

Group strategy to expand its software development and product portfolio.

With a focus to margin control.

Operating profit for the quarter amounted 200 million euros and improvement of <unk> 6 million from the previous year operating loss of 0.1 million and as a result of improved underlying performance and more efficient cost control.

We are pleased.

In the second quarter, we have seen a strong trading in line with our expectations. As a result, we are reiterating our 2023 guidance with revenue in the range of 93 to 97 million euros with a midpoint of 95 million euros, implying 12% growth from 2022 levels.

Adjusted EBITDA of $14 five to $16 5 million euros with a midpoint of $15 5 million euros.

28% growth.

Adjusted EBITDA from 2022 levels.

As you can see on slide seven the gross profit margins.

Growing trajectory through the third quarter of 2021 due to the shift in <unk> product mix, we continue to execute against that mission and strategic plan with scaling up our business in line with both our revenue growth and to continue on movements in product mix as indicated in the right hand side of the slide.

Product mix has changed noticeably since last year's third quarter, while the revenue scaling. This is also trending towards proprietary content, Pam and turnkey solutions by leading to improvement in gross profit margins and overall profitability.

Gross profit increased by 22% to $12 2 million euros in the first quarter of 2023 with margin improving by 170 basis points to 53, 5%.

The first quarter of 2023 revenue performance was driven mainly from the content, which is aggregate third party.

Exclusive content and proprietary content was Permian turnkey solution with slightly lower proportion in the first quarter of 2023, the total games and content revenue segment amounted to $17 6 million euros and represented $76 eight after revenue.

<unk> to $13 9 million and 71, 6% last year.

Content deployment is positively progressing both in the U S and EU markets by increasing both distribution and gain performance.

And as <unk> indicated we have recently marked another key milestone with the launch of our newest <unk> launch in Pennsylvania, Our four U S states to date.

As we indicated in the previous quarters, we are targeting gross profit margin improvement to reach 60% of our full year of 2024, mainly by increasing the proportion of revenue which comes from proprietary content.

And turnkey solutions.

Moving to slide eight adjusted EBITDA amounted to $3 9 million euros against an operating profit of 0.5 million euros. The gap was driven by the following noncash exceptional items depreciation and amortization the increase of intangible amortization part of the Wall Street can spin acquisition in June 2021, and June 2012.

Two respectively and increased capitalized software development costs.

Share based payment and a reduction in the charge for awards granted to senior management during the period composed of the issues and our Skus and share options.

Exceptional costs costs, mainly associated with the discontinued contractual relationship of several employees.

And gain on Remeasurement of deferred consideration. This is costs mainly associated with the acquisition of <unk> in June 2022 on the total outstanding deferred liabilities.

As Youll see on slide nine we ended the quarter with a cash balance of $15 1 million euros compared to $11 3 million as of December 31, 2022, with outstanding liability of $8 5 million U S dollars in convertible debt as of May 2023, the total outstanding liabilities.

$7 5 million U S dollars after several conversions and a cash repayment of half a million U S dollars in April 2023.

Net working capital at the end of March 2023 is approximately $7 7 million euros extra.

<unk> deferred consideration this is compared to $6 6 million at the beginning of the year.

Cash flow perspective, a total of $6 4 million euros generated from the operating activities with underlying performance, reaching the $3 4 million euros and in movements in working capital and income taxes of 3 million euros.

It's total of $1 9 million investments in intangible assets related to the capitalization of software development costs in the period.

Looking forward management projecting a positive free cash flow from operations was there is no capex all technology that's required in the business. In addition management is confident that there are no immediate refinancing of further debt requirement needs for the business.

And with that I will turn the call back to you. Thanks Aman.

Wanted to use this opportunity and spend a few minutes talking about the general state of the markets and the Big picture 2022 was one of the most volatile and challenging years in recent memory from a macro and financial perspectives and.

In 2023 at least to date, while some markets and sectors seem to be turning a corner. It remains to be seen whether we are at the end of this cycle high.

High interest rates and general uncertainty means companies must operate prudently with a clear focus on their businesses fundamentals specifically in our sector. The global growth of online gaming continues with digital surpassing physical gaming in many territories.

However increased regulation as we've recently seen with the publication of the White paper in the U K and different restrictions in Holland, Italy, just to name a few requires a different playbook, one where we need to be nimble.

I am pleased that we have established a foundation as Brian with this exact state of mind, and we are better positioned than ever to compete in the marketplace of regulated gaming.

Diversification prudence and capital deployment and operational excellence are no longer the proverbial extra mustard.

Preconditions for navigating in these stormy waters and to continue to grow as we have and expect to continue doing so in the near and long term.

Moving to slide 12, we have been busy ramping up our <unk> studios and powered by Brian outputs and we're starting to see the results.

As I've stated in the past building brag into a must have gained provider is a marathon.

Already considered a partner of choice for turnkey in game aggregation offerings, but F scale game production requires building and holding additional capabilities such as game design creative and mass development just to name a few.

Very pleased about the progress we've made in a relatively short amount of time. This is an incredibly competitive and exciting landscape and we aim to create a healthy balance between quality and quantity.

<unk> Studios are now working under the guidance of our new Las Vegas content hub headed by industry, leading talents, we expect our production and rollout cadence to increase through 2023, as we continue to develop and market specific titles with additional features and functions built into our tech stack.

In slide 13, we can see the manifestation of the growing number of exclusive and proprietary titles and our partner network through their share and gross profit.

The continued expansion of our share of wallet in gross gaming revenues across different markets underpins the business rationale behind this effort that gets us closer to our long term margin of profitability targets.

Moving on to the next slide gain production is built on a robust product and technology based developed by our amazing Braggers across Europe and India.

We continue to show growth on our turnkey vertical and our ability to partner with proven operating partners empower their digital growth in regulated markets makes Brad more than a one trick pony.

Diversification and scale are two critical aspects, we continue to drive towards their fundamental components and our resilience.

Brags managements are extremely focused on.

And then my last slide just to cap things off we're marking another strong revenue and adjusted EBITDA quarter.

<unk> production is firing on all cylinders complementing our expansion with new and existing partners across several key markets, including the U S and Western Europe .

We remain focused on long term value creation, credibly exciting and dynamic sector powered by our amazing team members around the world.

Thanks, again for joining and listening and we're happy to take your questions now.

And as a reminder, if you would like to ask a question. Please press Star then the number one on your telephone keypad.

Our first question comes from the line of Gian Luca Gucci with Haywood Securities. Your line is open.

Hi, Good morning, guys, congrats on a nice quarter.

Could you provide an update a rollout timeline for the U S.

The company just central Pennsylvania, So just wondering what your near term expectations.

For the U S market.

Hi, good morning.

Yes.

We've just launched our newest <unk> in Pennsylvania.

Just to clarify we are alive and all four states through the spin and then Ontario through the spin acquisition and the legacy.

Tech stack and games re launches, especially introducing.

Our latest.

Greg Rgs into those states, Pennsylvania, marking the fourth one so we're essentially are now we have our new foot.

In every state that we were looking to do so and now we are basically ramping up in both traditional operators.

And an.

An additional games, which with each operator.

The game plan right now is to have.

A few more operators live this quarter and next and Pennsylvania as well as in New Jersey and Michigan.

And we're working down that list, but the idea is to have it.

<unk>.

First and second set of Greg developed gains.

Each one of these states with the top.

Five to eight operators by year's end.

And we're working towards that and we're making good progress but got it.

The idea, we are modernizing and creating new content.

As we go forward.

Yeah.

Okay.

That's great color. Thanks, Denise.

And on your cash flow generation impressive.

In the quarter there.

Ah.

How do you plan to kind of deploy the excess cash flow that you guys internally are.

Generating now are there any M&A opportunities out there or perhaps buying back stock at these depressed valuations.

If you can comment on that.

Yes. Good question right now and we're happy to make progress there naturally this is sort of the base or the foundation of everything that we do at this point.

We have we're quite.

Proactive and mapping out the options to what's the best.

Value creation opportunities in terms of redeploying that cash right now it is redeploying it back into the business to make sure we further accelerate.

And bolster our content and tech.

Development capabilities as well.

<unk> and account management, so basically redeploying into business so far.

And in the near term I believe that will bring the best return on investment looking into the second half of the year into next.

Naturally there are.

Some interesting.

Issuing opportunities out there managing your own content that we're constantly evaluating.

But I would like personally seen that business sort of consistently generate.

Cash at this cadence and then we can.

The address potential.

Potential buybacks.

Refinancing or.

Or M&A.

Theyre downfield.

Want to make sure that this is consistent and that we deliver against.

Our expectations.

Perfect. Thanks, Geneva, and just lastly.

In terms of seasonality, how should we be thinking about that for the balance of the year given that the company is in an onboarding phase right now so does that mean that traditional seasonality.

Is to be throughout the window for this year.

Well, we do lift the shoulders or the.

A stream of our partners so activity so are we.

As a function of PTC operators.

Performance.

This year I think that we can expect more seasonality as you remember last year was 21% 22 were sort of odd years because of the post COVID-19 effect against the World Cup into fourth quarter.

I think we can expect a bit more seasonality, especially around travel season shows.

Activity.

Performance, but I hope to be able to.

Sort of.

Curtail that with more content deployed with it may take but I think it will be a more traditional year.

No major global sports events on the calendar.

Okay. Thanks, Steven Congrats on the quarter guys.

Thanks Harold.

And the next question comes from the line of Matthew Li with Canaccord Genuity. Your line is open.

Hey, guys. This is debbie young or Nathalie congrats on a good quarter.

Hey, Mike Great question is that.

Yes, you had a great quarter with 18% revenue crowd, which looks like it's driven by the segment of that business.

Your unchanged guidance startups to Chad.

For the year.

Can you talk to what are you expecting on that front or what's the cost of new cloud to stall a little bit throughout the year.

Thanks Betty.

I think that again, when we provided guidance sort of two tranches late last year into this one.

We felt that was.

It's sufficient.

Gross we did take into account that a big portion.

First half of the year.

Would be dedicated to distribution and deployment, we're happy to see that other segments of the business and the diversity.

<unk> is performing well and helping us exceed those expectations at this point I wanted to again because with some seasonality.

<unk>.

It's a relatively short amount of time since we reported last we wanted to get a bit more runway under our feet for this year before you've visited.

Our recent guidance.

Between now and summer to see how the business performs the trend is very encouraging.

Awesome, Thanks for additional color.

And then margin.

<unk> dropped this quarter.

Is that entirely due to the shift to profit.

Rocketry or Arthur Arthur.

Giving that profitability gains.

Oh, absolutely we.

Proprietary perspective, the proprietary segment, because we were focused on deployment.

Technical decline, mostly of game development through the first and second quarter.

Is growing but the other segments are growing even faster so where margin perspective, it's a combination of proprietary but also some cost control measures that we started to implement.

With regards to our commitment to share.

Shareholders.

Margin will continue to expand so we want to make sure that that progress is consistent. So this is on both ends of the spectrum.

The <unk> revenue mixture.

It's trending in the right direction and also margin protection on cost control.

It is also starting to deal with.

Given signs and we're continuing to focus on that to be as cost efficient as possible without naturally.

Jeopardizing growth.

Awesome.

And then last question.

Mexico.

Are you expecting in terms of contribution from Mexico, which appears to be.

The potential market for you.

I just to make sure I understand the question correctly around Mexico contribution expected from Mexico.

Yes.

Oh.

I think Mexico will be.

Drifting additive.

Contribution from for our overall business I think that the market has.

Grown consistently so we're definitely we've launched we're the market leader and we're looking to launch with additional operators I think it will be definitely additive.

And from the Latin American markets right now Mexico is.

As far as the biggest regulated market.

So I think it will definitely be additive I don't think it will be.

Take overall become bigger than any of our states or any of our major European countries, but this is a good example of a.

Smaller and we're working off a very low base in Mexico. So I think anything we will be able to generate through our content offer.

Because there will be additive both to revenues and contribution.

So we're very excited.

We're excited about the prospects there and that's also a very effective gateway to Latin America regulated gaming with the larger economies. They are all for regulation hopefully in the near term. So again, both on our P&L.

P&L and on strategic aspects Mexico.

The important deployment.

Awesome, that's very helpful. Thanks, I'll pass the line.

Thanks Penni.

Yeah.

And our next question comes from the line of Edward Engel with Roth and Kate Your line is open.

Yeah.

Hi, Thanks for taking my question I see in the presentation. It looks like you're targeting 15 game launches by <unk> <unk>.

First half of 2023 and then.

In the press release, you talked about ramping that further in the second half.

I know quality over quantity, but any idea of how many titles you're hoping to launch.

Second half of the year and I guess to <unk>.

That point I guess, what's kind of the target number of proprietary titles you would hope to launch on a on a normalized basis.

Hey, guys good morning.

So broadly speaking and again this is.

The Oregon too many details, but the way we count title.

Basically they have been.

Title based on territory.

Mostly because in some cases the title we are adjusting.

Per market almost but for unique titles were looking at total numbers of the year around 50 to 55 titles.

We're comfortable with that pace with an even balance between.

Terry and exclusive.

We're making good progress at this point, so we're pretty comfortable being able to produce.

That amount in the titles I think said that the balance between proprietary and exclusive may change during the course of the year because when exclusives are concerned we're also dependent on our partners working with us.

Specific oh.

Specific gains in title, but we've been very focused on ramping up the development the production and development capability out of Las Vegas in Europe .

And right now I think.

Machine is a much better shape to meet those numbers.

And hopefully exceed them. So we understand the balance between the quantity and quality when you could get to critical mass.

With all of our operating partners.

Got it that's helpful. And then you talked about you announced a bunch of interesting I guess content deals throughout.

This year, so far the couple different markets just.

Just curious I guess whats the studios.

Have you kind of found are a bit more traction with some of these international markets as wild streak scale working kind of a broad or is it more so.

Let's say content coming from your studios in Europe .

No.

Wall Street rents that we operate on a wild streak Thomasville, Bob and Bill Magic and Magic was built around and ramping up in Europe is the European focus.

Production slot lab is north American focus.

And those two.

Talk about bolstering up is making sure that each one of these studios has enough resources to self sustain and produce its own content, having said that we've already seen some very interesting cross pollination between the two using each other's titled adjusting now.

Developing different themes.

With derivatives.

So it's definitely you can cross.

Cross section, but generally speaking content, specifically developed for the U S or North America does better.

There have been in Europe , and vice versa.

But some titles I mean, we recently launched one of our partners blueberry.

<unk> title.

A very well known game in the U S has been doing well in Europe . It was launched in Europe first.

It's now being rolled out in the U S.

That's a good example of a title that enjoys headline awareness, but also very good gain production and performance and we hope to get more of those out the door.

On both sides of the Atlantic.

Helpful. Thank you.

Okay.

Okay.

And the next question comes from the line of Jack Vander <unk> with Maxim Group. Your line is open.

Okay, great. Good morning, guys nice nice quarter, thanks for the update.

And then I guess a question on the on the Pam side of the business can you just provide an update on recent Pam customer growth I think I heard something about three new Pam customers added in the prepared remarks.

Can you just talk about what other markets you are adding new Pam customers and then just for the outlook of the year.

How do you expect that to ramp thanks.

Sure. Thanks.

Pam has been naturally an important vertical to the business, we added new customers in Europe .

Central Europe , mostly harland.

Additional territory.

We are now looking at expanding that into additional markets I'm, saying, we're considering.

Each one of the very carefully because from a new market perspective, as we all know Pam.

It requires a different.

Setup.

And deployment so we're very.

Selective in our approach that has been having said that as you can see from the numbers.

It's been a very effective.

Both from a revenue, but also from a content delivery perspective.

So with that as being an important pillar of the business, helping us sort of.

Underpinned growth for the other areas of the business, but we as we stated in the past the overall strategies that's led.

So we are looking to deploy our Pam into additional <unk>.

European within existing markets, we've launched it in Poland, and Czech Republic last to market that we've deployed in and we're looking to expand the dose.

And also new territories during rapidly.

Half of the year.

That again will be on a more selective.

Patients with strategic partners.

To allow us to.

And our focus behind them because of what you think that kind of a turnkey in general requires a different set of.

Our resources and focus for the business. So we are.

Very much focused on allowing our partners the best tools to succeed.

Okay, Great and then just one follow up separately.

I think you touched on the German market briefly in the prepared remarks can you just provide an update there I didn't quite catch that.

And just remind us again, if it's a de minimus contributor to your.

Current guidance for the year and if there's upside to that number from the German market.

Sure.

A fair analysis of where we are I mean, it is a bit of missed the contribution of its pure upside or having said that I think we've we've.

We've been following that market carefully.

New regulating body is now.

Looking to.

To deploy or two.

To issue more licenses in the marketplace and we see more operators local operator is applying for those having said that I think one of the major challenges right now for the operators in the market is still the tax structure and the contribution that it brings.

Turnover tax in additional restrictions both the casino and sports that makes it very challenging with the current state of affairs.

To operate a profitable business.

In the marketplace.

And so I think that once this is revision both.

Both from a lender or a state and then the federal perspective, I think we will see much better chances.

<unk>.

Oh tangible and consistent growth there.

We are keeping our product up to speed the content suite that we offer.

So I think there is a second combined in terms of it's a central European in Germany.

Liability.

We want to make sure that we don't drop the ball on that.

Gross.

The more material, we'll be able to monetize but right now we're regulated perspective, we haven't seen the inflection point hopefully we'll see it later this year and next but Oh I have little visibility at this point.

About.

The operator's ability to go to.

To change the current circumstances, but I know they are very much focused on it.

You can target very good shape.

Okay, Great again nice quarter, thanks for the update.

Thanks, Sir.

And the next question comes from the line of David Knit Satkin with Cormack. Your line is open.

Hi, guys against a couple of questions.

I was wondering if you can give us an update on how the new games.

<unk> I would imagine, there's probably one or two that and perform a lot.

Better than the other one but cash you could just kind of give us an update and maybe call out what those games are and then secondly on the <unk>.

Intangible assets and as shown in the cash flow statement under the investing section I was wondering if you could give us.

Our outlet upon how much you think you'll be spending this year. Thanks.

Sure I'll take the first one and then local and then answer the second one in terms of the game performance.

As we've seen we've been very focused on getting.

<unk> development and deployment of the games that we have deployed last year late last year this year.

We've seen a couple of them.

Outstanding performers mostly in.

In the U S market.

Michigan, which a couple of the new games performed well I don't want to get into specifics because.

Because we haven't provided that breakdown, but.

Michigan has performed well over time.

In Europe .

A few of the newer titles that we deployed in the U K and Holland.

I'm talking about both atomic spot lab Indigo magic games have shown some very good initial results.

Again, we're measuring those over time, so one of the key parameters outside of initial performance both on wagers.

And rounds played.

So how fast they churn because we know gains share relatively quickly the games have been holding up quite nicely.

So far so we are very encouraged by not all games perform that way and naturally.

All of the games that we've deployed but generally speaking we see more hits.

And this is at this point and we are looking now we're very focused on further distributing so we can get these games and the new one.

It will be distributed our goal as we've outlined in the past is to have a constant predictable cadence of.

Games that can go to the widest possible network at any given moment.

We still have some work to do to make that happen right now the deployment to go a bit staggered and thats, where the financial effect is not as dramatic.

We wanted to be but that is one of our major focal points for the remainder of the year.

Get the games out faster and more streamlined, but that's an okay performance.

Performance in deployment in our local and then take the second question.

Hey, David Good morning.

So we always indicated.

Our investment, especially on the cash flow side is predominantly software development costs as we know.

Capitalizing the cost of funds.

Our team, especially on the areas, which are revenue enhancing new product new.

New games, especially the design now goes to new games, and new design of games, which is very very high.

Revenue enhancing and its breakeven.

Just given us information about that.

And this quarter it was $1 9 million.

We are targeting over the year between 9% to 10 with all sorts of the amount of developed for how many developments we have what type of projects, we're working with.

Roughly estimation as part of the year with Dana.

On top of that we just need to remember there is also a certification of games with as you mentioned we have.

55 different games to.

To launch over the over the year. So we're talking about simplification costs into the system. He was senior jurisdiction location have different certification costs, which also would capitalize again.

And we also registered IP as a non trademarks so roughly that.

What's I think is the best way the best way to estimate where we're going to be in by the end of the year.

Okay, alright, thanks, a lot guys.

Thanks.

And I will now turn the call back over to you Neil Sherman.

Okay.

Thanks, operator, and thank you all for attending.

First quarter presentation and questions I encourage everyone to further.

Our review the materials on our Investor website, and looking forward to seeing you over.

The upcoming yearly call for 'twenty three.

Have a great day.

This concludes today's conference call you may now disconnect.

Yeah.

Yeah.

Yeah.

Disconnect.

Okay.