Q2 2023 Sadot Group Inc Earnings Call
Of that group success. This quarter is a testament to the hard work and dedication of our team and we look forward to building on this momentum as we move forward.
Now I'd like to turn the call over to our CFO , Jennifer Black to review the financial performance of the company for the second quarter of 2023 Jennifer.
Thanks, Mike and thank you everyone joining us here today before I begin I'd like to note that our financial results for the quarter ended June 32023 on Form 10-Q were filed with the SEC yesterday August nine along with the press release that same day.
With that I'd like to give an overview of the financials for the second quarter of 2023.
As Mike mentioned in his opening comments, our Q2 2023 companywide revenues increased significantly.
<unk> hundred $60 million compared to $3 million for Q2 of 2022.
And the $160 million in revenue.
Revenue increased $157 million was primarily due to sales revenue from our Agri Foods unit, which completed 21 transactions in Q2 with the average revenue per transaction of $7 5 million and the average cost of goods sold per transaction of $7 3 million.
These 21 transactions were completed across 10 different countries.
Importantly, as Mike mentioned earlier, and we don't want everybody forget the company delivered its first profitable quarter ever.
We saw a $2 million increase in net income in Q2, 2023, when compared to Q2 2022 or.
Our second quarter net income was 190000 compared to $1 $8 million net loss a year ago. The.
The $2 million improvement in net income is primarily due to sit on aggregates.
So that foodservice organ operations generated total revenue of $2 8 million. This consisted of $2 5 million from company owned and operated locations and 240000 in royalties and fees collected from both muscle maker Grill and Pokey motto franchise locations for the quarter ended June 32023.
Revenue from company owned and operated locations decreased due to closing underperforming and non profitable muscle maker grill restaurant locations, while the royalty revenue increased by 46% as the company continues to focus its restaurant business unit strategy on franchising the cookie model concept.
Mike will provide additional details regarding our planned for Sadat foodservice operations a bit later.
The third business unit is our farm operations.
This unit is in its early development. We did just do not have financial results to share. However, I'd like to take this opportunity to feature our goals and strategies for the farm.
The expansion into farm operation aligns with the Sadat group's strategic vision of increasing margins through vertical integration.
Our acquisition and then almost 5000 acre acre farm in Zambia pending government approval, which is expected in Q3.
Has the potential to deliver multiple benefits.
The farm has the potential to provide a steady and reliable supply of Greens and Sri crops, which are currently experiencing.
In constant demand yielding higher margins.
In addition, the consistent protection of these farm products has the potential to elevate our trading operations with more sophisticated types of trades, along with the associated higher margins.
Second the farm could serve as an asset for collateral potentially enabling access to credit facilities.
This financial leverage should allow the company to pursue further growth opportunities and investments.
Lastly, the farm has the potential to provide a fresh source of revenues by operating as a regional hub for smaller farmers by providing use your warehousing and distribution services for their products.
Sadat group will not only aid these farmers and reaching wider market that may also help them optimize their agricultural practices.
In conclusion, the strategic decision to Burnley and vertically integrate through the farm acquisition is expected to yield multiple accretive benefits to sudhakar.
Let me now turn to the overall financial picture for Sadat Kurt.
Even though we had amended the service agreement with Ikea the issuance of common shares to argue for the stock based consulting agreement with still a significant change in expenses in the second quarter of 2023 compared to the same period in 2022.
The stock consulting expense of $1 1 million for the quarter ended June 30th 2023 is a result of common stock shares issued as a consulting fee due to argue for agro food subsidiary net income performance.
Based on the service agreement with Ikea to stock based consulting fees are now calculated at approximately 40% of the net income generated by the Saddam isn't cheap.
As of June 32023, we had a cash balance of $5 1 million and working capital surplus of $7 7 million.
The cash decrease in the second quarter of 2023 was due primarily to cash used for operations of $4 2 million. In addition, the company deployed capital into smaller size trades, which tend to generate higher margin there.
The company has over $7 6 million in net short term receivables that are due in less than 60 days.
With that I'd like to turn the call back over to Michael Roper.
Thanks for the financial overview, Jennifer appreciate it.
We're excited to report that our updated diversification strategy at emergence as a global Agri food supply chain organization are yielding positive results. The addition of Saddam Agri foods is undeniably generated substantial value for the company.
I'd like to turn our attention to the foodservice operations as.
As we progress in our strategic pivot towards the global food supply chain sector, We announced previously that we will be restructuring our three restaurants subsidiaries, we are reducing our restaurant operating expense and overhead as well as working capital demands by closing underperforming restaurant locations, while refranchising or selling most of our.
Company owned locations.
We will shift to a franchise royalty generating model focused on our pokey modal concept with 32 units open two more scheduled to open next week and another 58 franchises sold but not yet opened we are seeing significant interest and confidence in pokey modal in fact, we just completed the sale of three additional pokey modal.
Franchised locations in Kansas, and Oklahoma, just last week.
Franchisees of our muscle make a grille restaurants will have the option to remain as a muscle maker grill restaurant convert to pokey Moto or become a dual branded pokey modal slash muscle Baker grille unit.
Lastly, we're seeking strategic alternatives for our Super fit foods concept. So we're making some significant changes inside this restaurant division that will reduce our costs and improve our overall cash flow.
These actions will allow us to strengthen our balance sheet and reallocate funds towards growing the agro food supply chain business reinforcing our commitment to increasing shareholder value by focusing on our path to profitability market diversification and our strengthened brand presence.
In summary, we are extremely pleased and proud with our performance this quarter.
Before I finish I would like to also note that that group was recently added to the Russell Microcap Index, we're proud to be added to the Russell Microcap index as we believe it shows our continued progress in efforts towards becoming a more significant player in the global food supply chain sector.
Looking back on the work accomplished to date, we're extremely proud of our achievements, but the real excitement lies in our future. Moreover, we're thrilled to share that in the coming days weeks and months will be filled with additional exciting news as we continue to grow and shape the future of Sadat Group Inc.
Your continued support and engage with our invaluable to us and we eagerly anticipate sharing our progress and milestones with you.
With that let's open the call to questions from the analysts.
Thank you Michael I would like everyone to please note that Kevin Mohan Chairman of the board of stock group is on the call will be participating in the Q&A portion will take the first question from Aaron Grey with Alliance Global <unk>.
Gartner Erin.
Hi, good afternoon, and thank you for the questions.
Congrats on all the initiatives and strategic actions.
First question for me just on the quarter I know, it's still very early days for Scott revenues.
<unk> seen good monthly rather amazing above the $45 each month, but it is down a little bit from the prior quarter. So just from a high level perspective, if you can provide some commentary on what youre seeing in terms of transactions and size.
And I know, sometimes it can be a thin margin business. So sometimes we are passing up some revenue opportunities just given the lower margins associated with it and do you think you're getting some credit terms might offer you greater opportunity of those revenues. So any color in terms of the sales outlook that youre expecting in terms of the size of the market revenues.
Yeah.
Monthly revenue is a better run rate going forward or not thanks, Okay. Thanks, Aaron and this is Mike and just just before I start just I apologize to everybody I'm actually at the end of.
My isolation from Covid. So we are all in different rooms, right now so if we sound like we're talking over each other I apologize, but I'm having to isolate them.
Around that if you hear me cough and all of that.
Trying to get through it so I apologize in advance and Erinn. Thanks for your question you worked at about nine of them.
One question that are in there but.
But I will I'll start addressing some of those.
At the beginning you know the biggest question kind of summarizing all of you're talking about revenue right and what's the revenue look like as we move forward on things and you know I like to look at revenue in a couple of different ways. We've revenue can definitely be impacted by the size of the transaction the type of the transaction or the price of the commodity all kinds of different things that are.
In there and what we have noticed in the last quarter is that really what drives a lot of the revenue numbers as the price of the commodity itself. So as commodity prices drop in general your revenue can drop with it and vice versa. Okay. Now we're still shipping basically the same tonnage.
It's just that if corn as you know 10 cents upon cheaper than what it was the previous quarter. Your revenue could go down so a little bit of fluctuating.
The commodity world like that you did mentioned things about margin and what does it look like in the future and kind of what our run rate might be.
You know as we're as we're looking out into the next quarters. If I take a look back you know over the last eight months, our highest quarter was call. It 93 million that we reported in our revenue or our lowest was about 46 45 46 that we reported but our average is around $63 million, we kind of view that is that that's really where we see.
<unk> things kind of moving forward in the future right as to that level. However, that's where we are today, not including adding things like new orders or new trades coming in through <unk>. If you remember, we announced about a month ago month, and a half ago that we started a new venture and called it so that will come with.
Latin America, but the North America's Ray North Central and South America.
Trade routes and so those are just starting to come online now we've actually just initiated our first trade.
We know when we talk a little more about that in the next week or two here a little more details, but you know we did just start in Michigan. Our first trade through there. So you'll start seeing that layer in on top of the averages that we've been seeing so far so that call. It the $60 million on average and they start layering load time on top of it those are some pretty good numbers you did ask.
You know about margins and trades that are out there.
Let you know that.
There are instances, where we just pass up on a trade right.
It's very conceivable that you know the I'll use. A example, there was one that was out there that was for about $15 million.
And at the end of the day when you looked at it the margin on it was literally like $20000.
It's just not worth doing it you know or whatever it's not worth.
Taking the risks or anything like that so yes, we do take.
No.
We'll look at those type of things.
In regards to picking up trades, Jennifer do you want to throw anything in there about margins, yes, absolutely. So.
Unless the die.
In aggregate the margins today are solely dependent on the trade business that we're doing right now like Mike said that doesn't include the <unk> that has recently started and also doesn't include any of the other verticals that we've done you know moving forward you know we mentioned before we're going to incorporate Zambia farm.
In there and we will use them as you know to control the origination.
We also wanted to be able to control the destination in the logistics of all of our trains and by controlling all manners of those will.
We will potentially be able to create more consistent and higher margins across the board.
Anything else I'll, Thanks, Michael Jennifer Thanks, a lot for that really appreciate that on on the revenue and then some of the margin color there too, but wanted to dig a little bit deeper on the margin side. So.
Last quarter, you had spoken to some seasonality in the margins for the <unk> business. It was in the low twos were about 2% again.
For this quarter. So just wondering where is there still some seasonality in there and seasonality I think it gets stronger.
And in the back half of the year to separate ourselves with the business familiarity and then.
Speaking towards Latam or with the partnership anything to think about in terms of the margin of that revenue and the structure of economics out of that partnership that might impact the margins being lower than for the rest of the business. Thank you Yeah, Let me talk about that.
And again I never know if I pronounce it right on for Tom with Tam Latam.
It's L. A P. A M. However, you want to pronounce that right, but I'm from Chicago, I say things funny.
Times, but.
Looking at that but those are those trades are pretty typical trades of what we've been seeing so theres still going to be in the corn and the wheat soy those type of areas and basically some of the sides sizes as well the key point about it is it gives us a different hemisphere than what we've been doing before so if we're in a seasonality.
Issue in one Hemisphere, then this can pick up sales in the other hemisphere and vice versa right. So it helps smooth some of this stuff out.
From a seasonality perspective, so I expect moving forward that seasonality will start playing a lower.
<unk> are lower I guess effect, if you want to say not not that we're still gonna have seasonality or a certain hemisphere, but the other one will start picking up for it to give you a little bit more consistency.
As you move forward.
Jennifer you anything else on that.
No I mean, I think that that kind of addresses most of it and then as we continue to build our in our trade business and extend into different areas that will continue to smooth itself out.
Okay, great. Thanks for that color last one for me and then just in terms of optimization of the restaurant business.
Any color you can provide on timing of some of the initiatives, namely kind of closing of underperforming stores. When you expect to sell some of those owned stores to franchise. It and then when.
When you might come to a resolution on those strategic alternatives for Super pit. So just any color on unexpected time that those would be helpful. Thanks sure let me jump into there.
So we've already started the initiatives right. We've already started closing a few locations that were underperforming we've actually sold one of our locations in the Connecticut market for Pokey motor to a franchisee and we've got in discussions with a bunch of other people as well for some of the remaining units. There. So we're already in the motion of doing this and you're starting to see some of those results as Q2.
Two loss in the restaurant group is less than Q1 loss as we starting to roll through some of these things right and so we're aggressively pursuing it.
And again, it's a little bit different depending on each location there'll be some locations that we close.
Most of those.
There might be one more that's.
That's in there that we might just purely close the rest is going to be trying to convert them over to franchise locations and like I said, we've already got one of them converted over we've got discussions with multiple people on others as well so throughout Q3 youre going to be seeing all those impacts happening and then you know throughout Q4 as well as we finalize it out I like to look.
At it almost from a.
Almost a run rate.
When you take a look at it year to date on the restaurant side of the business you know, we last call it $600000 little bit less than that but let's just round it to 600 K. So.
So if I annualize that you're over $1 billion a year in savings as we convert all these things now that's assuming we can execute at a 100% of each location. That's in there and successfully sell them. So we think there's there's a pretty good.
Impact on the bottom line just from doing some of this restructuring and then you have your corporate overhead that's part of it as well right. You've got you know obviously you know as.
You start doing these things you don't have to have as much from a corporate perspective, meaning you know health insurance gets reduced payroll processing gets reduced regular insurance gets reduced those type of things.
I'll start falling into the corporate overhead bucket and Youll see some reductions there as well and we think that could be as high as an additional half million to $1 million on top of it. So there should be some pretty good.
Impact on the bottom line as we move forward and allowing us to shift resources more to the sedan side of the equation regarding super fit we just started that process right and so we have had some inquiries.
We're following up on those inquiries right now don't have a lot to report there yet other than we are aggressively pursuing that and following up with everybody. That's out there. So you know we have had some pretty decent interest just from make any announcement a couple of weeks ago. So it's looking pretty good from that perspective.
Okay, great. Thanks, Thanks for detail and I will jump back in the queue. Thanks Aaron.
Michael This is Jennifer Thanks, Aaron next.
Next question is from Bill <unk> with Greenwich Global.
Hi, Thanks, and great quarter.
Kind of a handful of questions about the farm operations.
Or just looking at Zambia.
You've given a range of crops should should we.
This to be kind of a diversified planting farm on an annual basis and then how should we look at the margins for that and then also you mentioned storage and other services you are going to provide the area of farmers, what's the capex need and timing for that and margins for that.
So let me let me talk about quickly about some of the the crops and all that that's there. So we currently have wheat. That's planted we expect to harvest that week end of September beginning of October timeframe, that's kind of when the harvest season is as.
As we mentioned earlier, we don't have the final approval from the government authorities, yet that should happen hopefully any day now, but we do have the right to use right and so we're farming it almost like a lease to a certain degree I guess, it's probably a bad analogy for it but we.
We do have the right to be operating that farm and so we've started those initial operations. So we don't Miss the the harvest season, that's coming up now on top of wheat. We also have mangoes, we've got avocados.
And we can plant in different crops as we move through in and just to be clear. The farm itself. As it is today is not 100% planted right. So we're gonna be able to increase some of the crops and some of the the harvest numbers whenever they come out of there over time as well right as we fully integrate that farm from where it is today.
So things are looking up from from that perspective regarding like margins and all that.
I'm going to throw out a rough number it's.
It's really in that like 25% range.
Those but that can drastically.
Drastically you know move or whatever depending on obviously the quality of the harvest in the crop and the commodity prices and everything at that time right. So, but you definitely have a lot higher margins.
There than you do you know to our normal trading cycle and that's why when we talk about vertical integration.
That's what helps the overall margins of the business right as you start incorporating.
All the way down to the source right. The origination side of the equation and then you can see control. The source you can control some of the logistics is like in the shipping and those type of things you can control.
Some of the distribution you can control.
Obviously, you know out of those at the store levels as well right. So you've got the origination your logistics and the and the destination type of stuff that you can control that's in there.
So and that's did I answer all your questions sorry, I want to make sure I didn't Miss one, yes, sorry, I asked a lot in there.
The additional services like storage and things for other farmers in the area Whats the plan for Capex on that and what you see from revenue margin potential from that business that service business. Yeah. So a couple of things there. So we're looking at one of the advantages of the farm and where it's located is you have other local farms all around you.
Right and where we're located is actually really pretty strategic we've got.
So really good roads, and some railroads and all of that stuff that are right, they're running either adjacent to our property or through our property right and we'll be able to start you know and we've had discussions with some of the local farmers already about warehousing some of their crop or whatever that's in there as well right. So you know kind of being a hub or whatever to be able to distribute this stuff and so we're just in the initial <unk>.
Stages on that right I don't have a real true unless Jennifer do you remember I don't I don't have a true capex number on that yet do you have something I can't remember.
It's still too early to discuss right now we have some numbers.
It's still too early for us to kind of go out and lay out the exact numbers if I could jump into this is Kevin Monahan, that's all going to be predicated on you.
The different deals that we have working in those areas and they can all change based on the size of the farms and so I think that's information now that we will be.
To get a little bit more detail Don at another time, where it is probably a little premature at this point.
Okay. Okay, and then is this kind of a model you want to replicate for other farms or would.
Would you look at other things like commodity processing as well.
Yeah, I would say this is kind of a model as we look at some of the other farms that are out there right I mean, we want to kind of be the.
I guess, it's a hub and spoke kind of model for certain degrees. So you can kind of accumulate different farms around you not only from purchasing yourself, but then also.
Some of the different warehousing and distribution like we just talked about so that's a pretty common.
Common structure.
That's there.
That's how you create the consistency and the margins for this business because like Mike mentioned earlier with seasonality.
The more verticals that can integrate into your business the easier you're able to capture these margins maybe in smaller increments.
Just if you can kind of achieve those numbers that you've created as far as an expectation.
Okay, Alright, and last question did you guys buy any shares back from the buyback plan.
Yeah. So if you don't mind, Mike I'm going to take that one.
Yes, so as far as the stock buyback program, we did implement a.
Our stock buyback program I think it's really important.
William that everybody that's on this call understands that.
One of the challenges that you have as a public company is that if you have material nonpublic information, that's ongoing and I would use just as one small example of that the services agreement with Avia. When you have something that you make a material change. Unlike that you can't you can't trade on that and so because.
Because of the the bulk of what we've had going as far as material nonpublic events that are working on in the background. We've been fairly limited, but I think it's important for investors to know that and we do have the plan in place and we have every intention of taking advantage of it when the time is right and when we are not in a blackout period.
Okay, Alright, thank you guys.
Wonderful. Thank you Phil next we have Tom Kerr with Zacks Research. Please go ahead.
Hi, Tom.
Morning, guys.
The follow up question on the overall.
Business as it pertains to commodity prices you mentioned that.
A high commodity price would be higher revenues, but does it affect margins and I just noticed that.
<unk> prices were a 12 year highs I mean with something like that would be.
Positive negative or neutral because you're just looking at a spread business on margins for a profit.
Okay.
Okay.
Do you guys want me to take it.
Again very different rooms.
Jennifer Kevin sorry, I'm on mute I apologize I was China.
And so it just depends on the trade because you know when youre doing trade, sometimes you're executing on the contract now sometimes you're asking later are they locked in prices are you doing are you doing longer term prices are you hedging that addresses all different types of variables that come into play and again it depends on the.
Tycho, great shape, and Jesse Cai Rice prices are up does it mean that spread it necessarily there. They can depend on the type of trading situation. My Kevin do you want to add anything to that.
No I think that that reserve.
Really try that sums it up right I mean, so you've got.
Sorry, Okay.
Okay, sorry jumping on top each other.
Yeah. So like Jennifer said it is so when people look at just pure revenue right I mean, remember theres a lot more tied into it from the margin perspective, right and how you can drive margin through there. So it's not necessarily linear to the revenue side of the equation is the type of trade the timing of trade you know all that kind of stuff. That's in there. So just wanted to make sure we're a little bit careful on.
Just focusing on the commodity price up or down but that that's that's not necessarily what drives the margin.
Got it okay that makes sense.
And on the restaurant business and sorry, if I missed this.
Where the franchisees are you incorporating some scene.
Problems with food price inflation or the ability to raise prices to cover that then that big issue of the debt.
Yes, So lastly.
I'm sure we all know on the call right last year, especially there was a huge increase in food prices right across the board great retail side wholesaler side everything in virtually all commodities and in items that were out there and it also went into paper goods and everything as well.
We have seen though recently in the last quarter or so that that is basically stabilized you know now now it's really more of certain commodities might be up while certain other ones are down or whatever right and so its overall its kind of stabilized and as a matter of fact, when you look at our food cost percentage as a percentage of sales of the restaurants, our food costs.
<unk> as a percentage decreased in this quarter versus the previous quarter in the previous year. So we are attacking some of that food stuff, but overall I would say that the food prices are stable.
We did take price increases back in the first quarter and in Q4 of last year as well.
Offset some of that stuff so as the prices of the food comes down it helps us manage that and a lot easier way.
We do it through menu management and like I said, we've also done it through some price increases so right now, we're not seeing a huge impact or push.
On food prices going up is pretty stable.
We are planning right now to take a price increase we are we are monitoring not only just what we think the consumer can handle because they're getting hit from all angles, obviously rife with inflation or anything else going on out there but.
We're also looking at our competitors to see what they're doing as well and so we're kind of at a hold mode right now from that perspective, but again, we're not seeing any increases we're actually seeing a little bit of improvement that's out there and that's not only just for our corporate stores, but also for the franchisees. One area. We are seeing an increase though on as most can probably imagine is on the labor side.
The equation, so we're having to try to manage through some of that Luckily enough you know our model for.
At the restaurant level doesn't require a lot of labor theres not a lot of labor for just running the restaurant theres not because there's no cooking and all the other stuff involved.
Theres not a lot of labor for training either.
So it's becoming more stable, but it is there is pressure going up we just don't have as much of an impact or some other type of concepts may have.
Got it that's helpful. One more quick one for me on the.
I'm still confused on the stock consulting expense.
If there's $1 million in the quarter does that.
Maintain the next two quarters or does that eventually go away I'm, just kind of confused on the timing of that of how and when it goes away completely.
I'll speak on that night.
Sure.
I think there will be a growing bank.
80% of.
Aggregate net income, which was reduced to 40%.
What happens then is in the agreement to reduce our shares.
We provided those shares issued this year is to add is do they have the shares fully issued.
Those will vest.
Based off as a percentage of income.
Sure. So I believe it's 8 million shares right now little over 8 million well that's quarterly until they are fully earned once they are fully orange. Then there is the debt component, where we can accumulate debt up to roughly $71 million.
That expense will not go away.
How the shares have been fully issued and that debt has been fully utilized as long as we want to continue this agreement.
If I understand.
Yeah.
Got it and it just.
Kind of impossible to predict when that will be right.
It will depend on how fast and how advisory ground.
And how much.
The unit was profitable okay got it.
Alright, that's all I have thanks.
Okay.
Alexa.
Sorry about that I was on mute. Thank you. So much we will take the next question from <unk> with Lake Street capital markets.
Sorry, I was on mute my I had a bunch of questions on your vertical integration strategy, but those have generally been.
Ben address so I appreciate you calling on me congratulations on such a dynamic period, but I think I'm in good shape for now.
Great. Thanks, Ben Thanks, Ben Lastly.
Lastly, we have Rob Goldman with Goldman small cap research.
Zero.
Nice quarter most of my questions have been answered, but just a couple of quick ones regarding your new business in the Americas.
Mike You had mentioned that you just executed our first trade.
Congratulations on that and my question with respect to that is instead of it early in the cycle.
I, probably would have thought maybe.
Your first transaction might not be.
Until the next quarter. So that's certainly a positive.
Just one more color on there if you could provide that as well, yes. So a couple of things one we initiated the trade I don't want to say I don't like to say executed until it is done right until all those subsequent meeting we got out of the boats. It's done it's been delivered and everybody can just say this thing is completely fully done, but yes. Its been initiated meaning we're loading boats and starting the process and we've got the <unk>.
Agreements in place and we're starting to.
To make that happen and yes. It is it is earlier than we thought.
A little bit of time to.
You set everything up right.
Not only just from a trade perspective, but also just from a corporate governance operational type of perspective, if you Wanna say right. So it is a little bit earlier than we thought but you know we're hitting the ground running and it's all good news or things that are happening out there. So we're pretty pleased with what's been going on there. So.
Foreign expect more than just obviously these initial ones that are coming through so now it should be relatively.
Consistent as we start moving forward sure and with respect to that.
Do you anticipate that the category and business. If you will from that location to be similar to the traditional trading type of business, you've been doing or might there be more of an emphasis on logistics or shipping.
Yeah, I don't know if Jennifer has got any more insights than I do on this but you know it is.
As far as you know I like to look at it is it's pretty similar to what we're doing everywhere else right. Many of the same type of crops. The same type of model.
It's out there except now it's in a different hemisphere, right and we're focusing on the Americas you know on this one right. So.
I don't know if that's answering your question, but that's kind of how I view it.
Great. Thank you.
Okay.
Wonderful.
That concludes our Q&A portion of the call Mr. Robert do you have any final comments yeah. So let me just let me just throw out there a little bit.
I do want to express my gratitude and thanks for all the stakeholders and shareholders that have are believing in what we're doing and where we're going where you've obviously done a really big pivot in the company and in a very short period of time have made a lot of progress and are moving at a pretty rapid pace become part of this overall global food supply chain.
Right.
You know, it's a big endeavor you know it's not just you know one facet of the supply chain is all of it right and so we're getting into the farming side of the equation. Obviously, we're already in the trade we already have the the consumer side will be filling in other pieces in there as well not only new verticals, but also expanding on existing verticals and so we get deeper.
<unk> deeper into that supply chain. So just want to say thanks to everyone for I.
Believing in the company, where we're going and then I also want to set out a quick thanks to all of our employees and vendors.
And partners that are out there.
They are the ones to do it all work and you know theres, a saying we have internally that sometimes we feel like we're drinking out of a fire hose.
There's so much going on and all the employees are putting in extensive hours and efforts and doing everything they can to really make a.
This company something special so I wanted to thank everybody from there as well so that's all I had I appreciate it.
Thank you so much everyone. We will go ahead and conclude today's meeting.
Great. Thanks, everybody.