Q2 2023 QuantumScape Corporation Earnings Call
Good day and welcome to quantum Scape second quarter 2023 earnings conference call.
John Sega quantum Scapes, Vice President of capital markets at S. P. N. A you may begin your conference.
Thank you operator, good afternoon, and thank you to everyone for joining <unk> second quarter 2023 earnings call to supplement today's discussion. Please go to our IR website, IR <unk> quantum state dot com to view our shareholder letter.
Before we begin I want to call your attention to the safe Harbor provision for forward looking statements that is posted on our website as part of our quarterly update.
Forward looking statements generally relate to future events, you should technology progress or future financial or operating performance our.
Our expectations and beliefs regarding these matters may not materialize.
Actual results and financial periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected.
There are risk factors that may cause actual results to differ materially from the content of our forward looking statements for the reasons that we cite shareholder letter Form 10-K, and other SEC filings, including uncertainties posed by the difficulty in predicting future outcomes.
Joining us today will be <unk> co founder CEO , and chairman J D C and our CFO Kevin Patrik.
Jeremy will provide a strategic update on the business and then Kevin will cover the financial results our outlook in more detail.
I'd like to turn the call over to Jamie.
Thanks, Josh.
At the beginning of 2023, we set out a few key goals to enable our transition from technology prototype to commercial product.
The first half of the year behind US we're pleased to share an update on our progress.
The first of our 2023 goals was to increase the cathode loading of ourselves, which increases sell energy attacking more cathode active material into the same area.
Last quarter, we shared testing results of to their unit cells using higher loading cathodes, which.
Our system enables thanks to our analysts for your lithium metal technology.
This design eliminates the graphite host material used in conventional battery anodes, reducing the transport distance with you in my arms have to traverse.
Recycles and allowing for higher cathode loadings.
These new categories are capable of storing more energy not only compared with the cathodes itself. We've previously shipped to customers, but also relative to the cathodes using commercial cells, such as a $21 70 batteries, which power some of today's best selling Evs.
We're happy to report that we've now shipped high cathode loading itself to multiple automotive partners in line with our development roadmap.
This is an important milestone because this level of cathode loading is close to our commercial intent to cathode loading design for LNG dead cells and represents a significant step towards delivering a commercial product.
Yeah, our view.
Combined with the 24 narrow capability, we've already shown in our easier prototype cells.
Other plant improvements this ship and represents a validation of our ability to achieve industry, leading energy and power performance for our first commercial product.
On that subject as we announced last quarter. Our first commercial product is planned to be a five amp hour sale, which we believe will offer a compelling combination of energy density and power unmatched by the leading EV batteries available today.
We're designating this first product Q E Pi and are already working closely with our prospective large customer in the automotive sector for yourself.
The goal of bringing our next generation technology to the electric vehicle market as rapidly as possible.
Our technology enables a shift of the energy power frontier.
We expect to see five to push the frontier well beyond the capabilities of today's best performing E. T cells offering an unmatched combination of energy density and power performance.
Better than 800 watt hours per liter of energy with the ability to charge from 10% to 80% in approximately 15 minutes.
We believe this is a unique selling point.
With our technology, enabling longer range higher power faster charging we believe automotive Oems gained the ability to better differentiate their EDI offerings.
Note that delivering on our product roadmap will undoubtedly require us to successfully address many technical and manufacturing challenges, including our key goals for 2023 and beyond.
However, we believe GIC five raises the bar for performance and puts that redevelopment on a fundamentally new trajectory.
Now I'll Warner that our technical development.
Last quarter, we shared data from high power discharge of unit cells with high loading cathodes.
This showed that in our system cathodes optimized for high energy density can also meet the demands of high performance vehicle applications.
Of course in addition to high rate discharge improving the driving experience of electric vehicles also requires high power fast charging.
We've targeted the ability to charge from 10% to 80% in approximately 15 minutes for our first commercial product faster than conventional LNG cells used in today's best selling evs.
Fast charge rates present, a challenge for conventional cell architectures, which have to transport lithium ions of one side of the battery to the other and then drive them into the graphite or silicon host material, which imposes a kinetic penalty that liberty power.
Our system unlocks higher performance by pleading lithium directly on the anode layer.
The need for a host material.
The lithium ions in our system have a shorter distance of diverse and don't incur the diffusion penalty of intercalated until graphite course material.
As the case in the conventional cell.
As a result in our system lithium can played as fast as the capital it can deliver it.
Thanks to this fundamental advantage, we've now demonstrated unit cells capable of meeting our 15 minute, 10% to 80% fast charge target, even with a high loading Kathryn.
As shown by data published in our shareholder letter our analyst redesign enables not only higher energy density via higher cathode loading in a theater anode.
So higher power density as a result of shortened ion transport paths.
This fundamental advantage is why we believe our technology is capable of an unmatched combination of energy and power.
Another key technical development milestone as safety testing in.
In Q2, we ran a suite of safety tests on our Asia, a prototype cells, including mail penetration overcharge external short circuit, a thermal stability testing up to 300 degree Celsius and we're pleased to report that the easier prototype cells successfully passed the safety tests. According to the specification.
<unk> set by a leading automotive prospective customer.
Okay.
We attribute these impressive results to our solid state architecture, which replaces the combustible polymers separator in conventional lithium ion cells with a noncombustible solid state ceramics that later and also eliminates the graphite view from the anode. However, it's important to note that safety is a function of cell materials and design.
And as we improve packaging efficiency and energy density for <unk> five the cell itself will have different physical characteristics and potentially a different safety profile.
Any new cell design must be retested to establish its behavior under abuse conditions.
We also made significant progress last quarter on our manufacturing scale up process.
We reported previously on an innovative fast separator heat treatment process that offers the potential for dramatically better throughput.
Initial deployment of this fast process is another key goal for 2023, and we plan to roll it out in two stages, which we have Doug <unk> and Cobra.
The underlying work on these processes has been ongoing for several years and as the data has come in it's clear the fast separate our processes or the end game for a separate or production.
Raptor introduces a step change process innovation, which allows continuous flow of heat treatment equipment to process separate our films more rapidly while applying less total heat energy profile, increasing the throughput of the equipment and bringing down the cost of producing an individual's separator.
Raptor is intended to support production of initial B zero samples from Q zero in 2024, and so our goal is to quantify wrapped toward full production by the end of 2023.
We're pleased to report that installation of Raptor equipment is complete and we continue to expect initial production to begin before the end of the year.
Cobra is a further evolution of the fast separator process, which build on the innovation of <unk> and adds even faster processing and better unit economics.
We see Cobra is a groundbreaking innovation in ceramics processing and we believe it represents the best pathway the Giga factory scale manufacturing.
We're currently operating prototypes of Cobra and intend to rollout our first production Cobra system to support higher volume Bcf of production from <unk>.
Yeah.
Finally, I'd like to take a moment to look at the bigger picture and our strategic outlook.
At the start of the year, we set our focus on moving from our first 24 layer a zero prototypes, which we shipped at the end of 2022 to our first commercial product design with initial lower volume be zero sample production currently slated for next year.
To achieve this transition from prototype to product we set four key goals.
Introduce high loading cathodes.
Bring up our fast separator production process optimize packaging efficiency.
And improved sell quality consistency and reliability.
Midway through 2023, we're excited and encouraged by our progress against these goals.
We've demonstrated 800 cycles with high loading cathodes immune itself and have begun sampling high loading unit cells to prospective automotive OEM customers for validation in their own labs.
With Raptor equipment, now fully installed and beginning qualification.
We're making good progress in implementing our faster separated production process.
Our packaging efficiency.
<unk> product is being developed for a slimmer version of our <unk> zero packaging, which we believe will allow for an unmatched combination of energy density and power performance.
Better than 800 watt hours per leader with the ability to charge from 10% to 80% in approximately 15 minutes.
As our product roadmap shows we also believe our solid state lithium metal technology unlocks significant design headroom and can put EV battery development on a fundamentally new trajectory.
As a result of our ongoing quality improvement initiatives, we've integrated inline improvements to our manufacturing processes and metrology systems, which are showing encouraging improvements to reliability.
Ongoing improvements throughout the year has allowed us to ship high capital loading unit sales to customers in line with our development schedule.
Hopefully it's clear from these results that our team of more than 800 engineers technicians and business personnel has been laser focused on doing what it takes to bring our first commercial product to market.
As we always emphasize there is much work still to be done on our path from prototype to product and unforeseen challenges will almost certainly arise. However at the close of Q2, we're excited by the momentum we built and energized to tackle the remaining challenges on the path to commercialization.
We look forward to sharing more as we continue ahead.
With that I'll hand, it over to Kevin for award on our financial outlook.
Kevin.
Thanks, Jamie the.
Quarter 2023 capital expenditures were $25 million GAAP operating expenses were $124 million cash operating expenses defined as operating expenses less stock based compensation and depreciation were $64 million.
For the full year 2023, we maintain our guidance on capital expenditures of $100 million to $150 million in cash operating expenses of 225 million to $275 million.
During Q2, our capex, primarily on toward facility spend for our consolidated <unk> zero pre production line.
Other notable capex spend was driven from progress payments made towards various equipment projects, including equipment for their after process.
The remainder of the year, our Capex will continue to be allocated toward facility work and equipment for our consolidated Q zero pre production line.
We ended Q2 with over $900 million in liquidity, we continue to look for opportunities to optimize our spending and be prudent with our strong balance sheet.
We maintain our guidance that our cash runway is forecast to extend into the second half of 2025.
Any funds rates from capital markets activity, including under our ATM prospectus supplement would further extend our cash runway.
Longer term, our capital requirements will be a function of our industrialization business model, which we believe could reflect a mix of wholly owned production joint venture and licensing relationships.
Thanks, Kevin will begin today's Q&A portion with a few questions. We've received from investors or that I believe investors would be interested in.
Our first question is for you can you expand a bit more on the large customer that you mentioned in the shareholder letter.
So we can't say much more than we said in the shareholder letter, which is that we're already working closely with the prospective launch customers in the automotive sector for <unk> cel. The two points I would take away. Our one is with the <unk> sale. We've defined a specific set of functionality that we believe offers a compelling combination of LNG and power. So we can.
Deliver in the near term and to customer interest that we've seen in Lasalle provides further evidence that the market is excited about this unique capability and that the value proposition is compelling.
Look forward to sharing more when we can.
Okay. Thanks can.
Can you compare the <unk> five products at launch relative to your expectations of where our silicon dominant anode sales may be at the time, notably on energy density and charge times.
Sure, let me start by pointing out that when it comes to anodes lithium metal approach offers the highest theoretical gravimetric energy density.
Within the category of lithium metal anodes at analyst redesigned offers higher energy density that approaches that require lithium foil.
As shown in the energy power Frontier chart in our shareholder letter for any given chemistry batteries can generally be optimized either for power or for energy, but not both simultaneously.
During this requires moving the energy power frontier up into the right, which typically requires a new chemistry.
Now silicon anodes do have the potential to move the energy power frontier incrementally. However, our understanding of silicon anodes today still generally consistent relatively low amounts of silicon, which in our view limit their value as such anodes are mostly carbon.
Future, so called Silicon dominant anodes had their own challenges for example, we're on low cost production, if they use chemical vapor deposition or with cycle life, and <unk> extension, which tend to be worse with higher silicon content.
What we believe is unique about our technology is the ability to offer a compelling combination of energy density and fast charge simultaneously representing a step change in performance.
Furthermore, with future enhancements, such as larger format cells, which improved packaging efficiency, we expect energy density to improve from here.
So we believe our technology represents a platform that we can build out over time.
We expect our initial product <unk> to deliver a better power energy combination and what we believe the industry will be capable of delivering in the near term, but over time, we expect to expand on that lead as we believe we're just at the beginning of the S curve of our technology.
But probably the more important point to close on is that we believe the market is big enough for multiple entrants.
The planned EV transition targets announced by various automakers and governments are realized we believe there'll be more demand for batteries that any new entrant can satisfy.
Okay. Thanks. Our next question comes from our MSR Inbox, what are the major challenges you still face in scaling up production.
So in terms of the main challenges the first step is to lock and load on the critical aspects of the product definition. We believe we've now done that with <unk> five once we have the product defined we need to freeze the major steps of the production process.
However, we manufactured.
Once we do that we can specify and order manufacturing equipment and tools.
And finally once that equipment arrives, we can install qualify turn it up and the production of <unk>.
This is what we're doing between now and when we have higher volume samples at the end of 2025.
Thanks, Kevin turning to you know investors have been asking about the long term business model and in the shareholder letter you mentioned your openness to wholly owned facilities joint ventures, and licensing relationships could you walk investors through the advantages and disadvantages and also comment on whether or not quantity needs a wholly owned facility up and running to prove out manufacture ability.
Before a partner can build and license the technology.
Hi, John Thanks for the question.
First regarding our openness to various business models are prospective customers have communicated different preferences, ranging from a desire to purchase cells or participate in a joint venture to licensing our technology and in the fullness of time, we would anticipate a combination of wholly owned joint venture and licensing business models that enable us to <unk>.
Dress the breath of customer opportunities we see.
The advantage to the wholly owned business model is control arm scape received 100% of our revenue and proceeds generated by the factory.
A joint venture ads and the strength of the partner for example, customer commitment manufacturing capabilities and reduces capital requirements for quantum scale.
And finally licensing is the most capital efficient model and allow us penetration of the market beyond the scale up bandwidth of the Commscope manufacturing team.
Under a licensing model, we'd look for economics that reflect our product differentiation.
And look to see both contractual IP protections and alignment of incentives with our partner.
As the final part of your question our pre pilot production line in <unk> zero is a wholly owned facility a core purpose of <unk> zero is to serve as a blueprint for subsequent factories scale up irrespective of the business model.
Okay. Thanks, so much Kevin we're now ready to begin the <unk> portion of today's call. Operator, Please open up the line for questions.
Thank you. Thank you would like to ask a question on the phone lines. Today, you can press star one on your telephone keypad to remove yourself from the queue that is star one again.
We'll take our first question from Winnie Dong with Deutsche Bank.
Alright. Thank you so much for taking my questions. First question is you mentioned that you're already working with.
Prospective launch customers.
Can you maybe elaborate on the process and the catalyst behind it how is this different from what you're seeing from the ACO shipment that you're sending to multiple customers.
More are you working with this particular launch customer on you or not.
Necessarily doing with the rest of the builder lines yet.
Yes. Thanks for the question William This is J D. I'll go ahead and take that so the.
Zero prototypes were just that they were prototypes that were meant to demonstrate that the core functionality is feasible.
What we're talking about now of course is the <unk> fives cell, which we believe will be the actual so that we deliver is our first product. So what we're doing with this.
Prospective launch customer is working closely to two.
Integrate that sell into their design. So we can't say much more about about this as I mentioned in the answer to John's question, but I think our takeaway is that we now have a product definition, which is <unk>, that's very specific <unk> that we.
Spoken about before.
<unk>.
Based on the customer interest that we're seeing we think the combination of energy and power density. This all provides.
Is in fact.
Something that the customer base is excited about so those are the key points that I would emphasize about about that that product.
Okay. Thank you so much and then the second question is it seems like Youre, making.
Good progress on the equipment installation front.
Or would you have to able to attach some.
Numbers to either the.
Raptor them Cobra process. Thank you.
In the past you've provided.
<unk> thousand.
Separately, our production per week.
What would that look like after it and what would that look like the co brand.
Yeah, absolutely so you're right to focus on that to incorporate because that really is what we think we think the future lives for four.
Oh hi.
High scale production of our of our sub readers.
As we've said before the steady state production of our current capabilities on the order of 5000 films per week fulfillment system Award for separator.
And we've indicated that we believe the Raptor line is capable of.
Roughly three times that capacity now it won't be there day one.
There are also other bottlenecks that have to get resolved. Besides the tool itself so things like that.
The automation to load and unload the tools and so on but at a fundamental level the ability of that towards the process films is.
Is a lot faster than our current process.
Of course with Cobra.
Further improvement in terms of both.
Throughput as well as unit economics on the separator and there too we were really excited about the progress because as we mentioned in the letter we have prototype Cobra tools running at this point as well so we feel good about both of those processes.
I'll just say in closing if you look at the cover of our shareholder letter.
That's actually a photo of the Raptor.
Equipment and divert specifically those load unload robots.
That are used to load and unload the.
The electoral process.
We will take our next question from Chris Snyder with UBS.
Thank you.
Wanted to ask you on the timeline between a sample sample and see sample and.
In the past the company has kind of talked to about 18 months gaps between each.
I believe the shareholder letter from today, you said, a b sample next year.
My question is.
Does the prioritization of the Q S E five rather than the larger format does that change the timeline just that hey, this product seems a lot more commercially ready. Thank you.
That's a good question I think the way that we would interpret the <unk> is rather than any kind of a schedule acceleration, which is of course constrained by the time it takes to get automation equipment in to turn up that equipment and so on is not a lot. We can do to compress those times those are really our suppliers schedules.
Rather than that I would think about this is as risk reduction. So if we had to design a different form factor that we'll say goodbye.
Medically.
Different than what we've been working so far.
There is the risk that that could take longer because then we need to modify things like the robot and the factors that are used to pick up and load unload the films.
Laser cutting that we used to do different steps in the process and so on so the way to think about this Q4 and that is because it leverages.
The same form factor of the same dimensions, we've been working in it really represents in our view the fastest path to market.
Our technology.
I was trying to change that form factor will just potentially extend things out. So that's the way to think about <unk> as a way to.
Reduced risk rather than <unk>.
Acceleration.
Thank you I appreciate that and then I wanted to follow up on the cathode.
In the high catheter loading unit cells. So I guess kind of a part a can you just talk a little about why that.
It's so important for the company I mean, obviously, you know kind of historically the focus has really been on the anode. It does feel like the company has a lot on its plate already.
So kind of why add this to the mix and then.
Question B when we see when we look at the shareholder letter on page three and we see the performance of the Q S five versus.
Competing alternatives in the market.
Is that using the higher cathode loading.
So thank you.
Yes, it's a great question and I'm glad you asked it so that.
Dark blue curve on page three on the power energy performance Frontier chart.
That is the range of energy and power combinations.
It can be achieved in a <unk> five like cell and the difference between being on one end of that curve versus the other is exactly that capital of loading. So the reason why catheter loading is important is because it allows you to be on the right hand side of that curve.
Or will you have more energy.
But if you wanted to have a lower loading capital then you get more power.
So it's a really important parameter in the past and what we've shown data on is our roughly three.
Many of our power within this squared cells and this is north of 5 million half hour for a percent of your squared, which allows us to be a higher loading cathode than say conventional $21 70 cells that we've mentioned in the letter that are used in some of the best selling evs today.
So.
The short answer to your question is is.
Squeezing more cathode material into the cell is how you get more energy into the cell now you can't do that with conventional cathodes as easily because.
You have you are constrained by the transport distance inside the cell from one end of the capital to the other in Indiana and our design of course, because there is no conventional hosted annual Theres no carbon our silicon.
It's just a mere metallics lithium that place as you cycle that.
That transport path, it's shortened and so because we have a shorter path through the anode, we can use that extra distance to make the cathode.
More more energy dense in effect. So that's the reason why the loading is so important.
Thank you Sandeep.
Absolutely.
As a reminder, everyone that is star one to ask a question on the phone lines. We will take our next question from Ben <unk> with Baird.
Hey, Joe.
Hey, guys.
Could you guys just.
Good luck.
Okay.
But could you just update us on.
Yes.
We expected.
Sure.
Cars notion.
Robert just targeted capacity.
Okay.
Yes.
On the.
Ask your question is regarding output, maybe if I could start there the intention of Q zero is to do two things one is first commercialization.
Our technology now that would be through the Q S. E. Five as we've discussed about in this letter and we're excited to talk about that perspective first launch customer we haven't given an exact size to that but you should think of that as a small.
The small program.
Does that help answer your question.
I guess so.
Before we had.
Zero.
Mike.
Production.
Sure.
You guys gave a time too.
Thanks Chip you're around and I was just wondering.
Great.
Prime lenders now.
So we haven't I don't think we ever provided a gigawatt hour number or kilowatt hour number for <unk> I think as Kevin pointed out here's what we've said about kyocera.
We believe we will be making.
B samples off the <unk> zero line there are multiple iterations of the zero line, where we're going to be adding more.
Higher levels of automation to get hired hard capacity over time.
So I would expect that line to be to start out as a lower volume line and become a higher volume line.
We mentioned that there might be the first.
Our target remains to have the first b samples initial samples.
Come out next year in 'twenty for those will be on a lower volume version of that line subsequent higher volume versions to be sample. We've said in the past we will come out towards the end of 2025. So there is a.
There is a built in scale of the line itself that's contemplated.
But the important point for <unk> is the one that Kevin made which is that it is the factory. The production facility that we plan to use to define the blueprint for how to make our.
Ourselves and.
Industrialize fashion and then once we have that we can go from there as far as bigger factories or.
Joint ventures, with other folks or even licensing our technology out, but all roads lead <unk> zero. So it's a really important factor for us.
Just at the point the third time that is the same guidance as we've given last quarter.
<unk> samples in 'twenty four high volume be samples at the end of 'twenty five in fact.
Made progress against that execution roadmap installing the raptor system on time, including the equipment and the site acceptance test. So if anything we have less work to do over the remaining part of the year and we were actually pretty pleased with the results that we shared in this.
This letter.
Sure I think about the frontier recruitment skewed short.
There's a lot going on there.
I think about going into 2025, all of those little dogs.
46.
Thanks Bill.
You all direction.
At the same time.
You kind of go into that direction for commercialization and all I'm asking is how do you think about commercializing.
Incremental changes that are happening in the market right now with scale.
Yes, it's a great question. So yes. This is a really cool chart frankly, because it really shows two of the most important metrics that batteries are measured on.
If you look at the actual data points, we have there on current batteries you can see that in fact, the 46 80 is a little bit lower than the other cells on that chart to $21 70.
And the reason for that might.
It might be that.
They are optimizing for cost or some other metrics other than energy density and power density.
But this data comes from.
<unk> third party database.
Whereas what we're talking about is pushing the frontier out now as I mentioned in answer to John's question, one of the things that conventional lithium ion is hoping to do is introduce.
Silicon dominant anodes into those cells over time and that will.
If they are successful.
Incrementally move out the energy power frontier curve up into the right, but we believe.
Debt.
Lithium mine, that's a pretty mature technology and there's not a lot of juice left there to squeeze out so to speak whereas what they saw.
Solid state lithium metal approach represents a new approach with the new chemistry, where we're just starting out so our <unk> five that dark blue.
Curve on that power Energy Frontier chart, that's the beginning of our S curve. So we believe that as we for example increased the cell size the larger areas as we add other optimizations. We just go up from there and further expand the gap.
Thank you.
Of course.
We will take our next question from Jordan <unk> with <unk> Securities.
Afternoon on I appreciate you taking my questions I apologize if you already covered this.
Wanted to see if you could give a little color.
On the process.
First getting raptor online and what goes into that but then more importantly kind of the hurdles and complexities of the process. Once you move from Raptor. The Cobra is does that more or less.
Complexity from a process perspective, then Kevin graft are going or is it kind of just a matter of scale and volume.
Yes, it's a great question so.
With Raptor as we've mentioned, we now already have installed the.
The main tool that we use for <unk>, so that part of it we believe is in good shape.
We're making films now and we're pleased with the with what we're seeing from from that process.
It's very exciting because it's a it's a step.
A step change in the process that allows us to play systems more quickly with higher throughput.
We believe better economics.
Cobra does is take the same basic framework of Raptor in terms of how we're doing the films, but adds to it the ability to run an even higher throughput.
And so we think that.
Cobra is as an extension to Raptor would kind of build on raptor.
And in addition to that we've already built the first cobalt prototypes in house and they too are showing very promising results. So we think we.
We think that at the end.
Good day.
These two processes, which are really the same family of process.
We simplify the complexity of what we're doing today and that's why they allow us to run faster and more efficiently with better longer term economics.
Thanks for that and just as a follow up should we think about from the consumer electronics side. I know you had mentioned youre working with a few partners there that sells two I'm just curious if we should think of <unk>.
As a as a <unk>.
Time, when you can start selling into that space or how youre thinking about that.
Yes, So I think what we've said is that.
We expect to use cobra or the low volume be samples that come out next year.
I apologize I apologize I mean, we said that we're supposed to use raptor. Thanks, Kevin.
But he was raptor, which is the first generation for the low volume samples that come out next year and Cobra for the higher volume versions of the <unk> that come out at the end of 2025.
Relative to consumer versus.
Versus automotive I think the main point were making there is it the same functionality that we offer in our battery, which has higher energy density.
Higher power density and so on are of interest in multiple sectors and that basically creates optionality for us that we think is a.
Good thing for us to have.
Thanks for taking my questions.
Absolutely.
As a reminder, everyone that is star one to ask a question I will pause for a moment.
Alright, and there are no further questions at this time I would like to turn the call back over to Jack deep King for closing remarks.
Yes, so I would like to thank you all for joining us I also like to thank our team for the restaurant work this quarter and thank our shareholders for their continuing support of our mission and we look forward to doing more as we continue ahead.
Thank you that does conclude todays presentation. Thank you for your participation and you may now disconnect.
Thank you.
Hum.
Yeah.
Yeah.