Q3 2023 Hyliion Holdings Corp Earnings Call
Good day and thank you for standing by welcome to the highly on Holdings third quarter 2023 earnings Conference call. At this time all participants are in listen only mode. After management's prepared remarks, there will be a question and answer session I would now like to turn the conference over to Kevin first highly on as a director.
Of Investor Relations Cowen. Please go ahead.
Thank you and good afternoon, everyone welcome to Holly Holdings, Inc. Third quarter earnings Conference call on the call today are Thomas Healy, our Chief Executive Officer, and John Kinzer, Our Chief Financial Officer.
The presentation accompanies this conference call and is available on the Investor Relations website at investors Dot Dot com.
Please note that during today's call, we will make certain forward looking statements regarding the company's business outlook forward looking statements are predictions projections and other statements about anticipated events that are based on current expectations and assumptions.
As such are subject to risks and uncertainties. Many factors could cause actual results to differ materially from forward looking statements made on this call for more information about factors that may cause the companys results to differ materially from such forward looking statements. Please refer to our presentation and press release as well as our filings with the securities.
And Exchange Commission.
You are cautioned not to put undue reliance on forward looking statements and we undertake no duty to update this information unless required by applicable law. Thank you and now I will turn the call over to Tom Hello, and welcome to <unk> third quarter 2023 earnings call I appreciate everyone joining us today for a business update and third quarter financials.
Report.
Last month, we announced that with the support of strategic expert advisors, we were exploring a range of strategic options for our powertrain business, including engaging with a number of strategic and private equity partners regarding a possible sale or industry merger.
In parallel we also engaged industry experts to help us evaluate the market opportunity and competitiveness of the carnal generator.
As a result today, we are announcing that we have decided with the support of our board of directors to wind down the powertrain business, while preserving them technology for potential later use or sale.
<unk> forward, we will focus the company's capital resources and efforts on our Carno generator business and innovative new generator solution.
Although this is a difficult decision to make it as a decision we believe to be in the best interest of the company and its shareholders.
We are proud of the progress we've made with the development of our hyper truck <unk> powertrain as we've regularly publicized we've made consistent progress achieving the development milestones that we'd laid out almost two years ago.
In fact with the recent receipt of Carb certification at the beginning of extended fleet trials with customers and building of production trucks. We have completed all of the prerequisite steps on our path to commercializing our hyper truck <unk> powertrain.
Since I founded the company highly <unk> mission has been to provide innovative solutions that reduce emissions from semi trucks, which was in line with the interest from fleets and adopting electrified trucks and with the development we've accomplished to date despite.
Despite this progress the environment for companies in the electrified commercial vehicle space has become challenging.
Slower than initially expected fleet adoption of electrified vehicles higher component costs and evolving regulatory frameworks to have put significant pressure on companies like <unk>. As an example, I was recently speaking with a fleet owner, who shared that the cost to buy a conventional natural gas truck has increased by around 40%.
5% in the past few years we.
We've seen increases for nearly all powertrain parts some by more than $10000. Each while this is partly due to inflation. It is also driven by the limited number of suppliers and low production volumes for key components as a result of the immature nature of the electrified powertrain market.
Last June at our Investor event, we described additional development work that was necessary to align with changes to the regulatory environment.
This included integrating and obtaining carb certification for the new Cummins 15 liter natural gas engine <unk>.
Developing a day cab variants of the hyper Truckee, Rx powertrain and reducing the cost and weight of our powertrain.
While we believe our electric powertrain is the right solution for long haul trucking and avoid some of the hurdles associated with other electric solutions, such as charging infrastructure, ranging xiety and the high cost of hydrogen. We are now faced with an adoption cycle that is longer than we expected as fleets are delaying orders in <unk>.
<unk> mandates for the adoption of electric trucks.
The primary one being carb ACF, which starts in 2027 and requires additional investment in expense such as integrating into a day cab and a new engine.
Given these areas reasons. It is clear that further development of our powertrain business would require us to raise additional capital at some point.
Partly driven by higher interest rates, but also due to the recognition of the industry challenges I have described our third party experts have advised that the capital markets are not currently supportive of additional fundraising by companies developing electric commercial vehicles.
This has caused financial difficulties for many companies and some including pro Tara Lordstown LMS and recently Volta trucks have entered bankruptcy. Therefore, we believe it is important to act now while we are in a position of financial strength to discontinue spending on the powertrain.
<unk> of our business.
John will discuss the impact of the wind down of powertrain later in the presentation, but I want to shift to discussion now on our carnal generator business and the go forward plan.
Our goal with cargo has been to develop and commercialize the generator to address the growing demand for electricity with a distributed generator solution that offers clean efficient and cost effective electricity Carno is an innovative new solution that is powered by a linear heat generator and enabled by <unk>.
Advancements in additive manufacturing.
When we initially acquired the Carno technology, we saw it as a strong solution for both our hyper truck powertrain as well as the stationary market.
Our team has successfully showcased both the vehicle integration and the <unk> ability to work in a stationary application by providing power back to the grid as we look at the opportunities ahead. The carnal generator in the stationary market has become even more compelling due to its standalone nature and ability to address customers at <unk>.
Creasing electricity needs commercial.
Commercial fleets that have expressed interest and be easy vehicles are discovering that they are not able to secure sufficient electric power for their recharging infrastructure and when they do they are faced with significant capital investments long lead times, and often encounter above market electricity rates and incremental demand.
Charges.
Our carnal generator is currently being configured to solve each of these issues.
It is important to highlight that the carnal generator is unlike conventional internal combustion or gas turbine driven generators powered by a heat engine. The carno generator has distinct benefits compared to its conventional counterparts. These benefits include greater efficiency across a broad range of power output level.
<unk> lower maintenance costs high power density less noise and vibration and the ability to operate on a broad range of fuel sources, including hydrogen natural gas ammonia propane and conventional fuels.
Carnal utilizes a proprietary flameless oxidation technology that results in significantly lower emissions compared to conventional generators, we expected sufficiency to surpass conventional generating systems when employing various fuel sources and even outperforming fuel cell efficiency when operating on hydrogen while.
Generating no carbon emissions.
We believe the Carno generator can compete across a broad range of prime power applications operating as a substitute for or as a supplement to grid power. We also believe that can compete in markets, providing supplemental or backup power such as peak shaving electric vehicle charging or renewables matching.
Its ability to operate on a range of fuels fuel mixtures or even fuels with impurities is another advantage that enables it to convert waste gases such as flare gas are landfill gas into usable electricity.
Over the past couple of years, we have made significant advancements in its development as we prepare for initial commercial deployment later next year.
<unk>, we highlighted a major achievement of successfully returning power back into the electric grid from our facility in Ohio, using a carnal generator unit.
In recent months, we have been showcasing carno technology to potential customers through these discussions we are garnering valuable insights on how the coroner generator can address many of the pain points customers face with grid power one.
One example is maintenance costs internal combustion generators require frequent maintenance like oil changes that required downtime in technician support in contrast, the carnal generator has no oiler lubricants and with only one moving part per shaft, we expect maintenance to be significantly reduced.
As we continue these customer showcases we expect to announce soon that several of these companies will take deliveries of initial carnal units next year.
As we wind down the powertrain business and preserved the technology for potential later use we have an opportunity to shift to certain employees and technology to Carno development.
As an example, the cloud and infrastructure, we have developed to capture and analyze vehicle data is readily adaptable for use in system supporting carnal generator controls and monitoring.
The highly on drive processor, which is used on the vehicle for connectivity and advanced algorithms can similarly be adapted to the current node technology. We also see significant overlap in electric architectures and battery systems.
We plan to maintain operations in Austin, Texas, and Cincinnati, Ohio, Austin will remain our headquarters and will assume more activities related to the industrialization of the carnal generator and software development, the Ohio team will maintain its focus on R&D technology.
As we transition the focus on cargo, we will be able to significantly reduce the amount of cash spent on the business John will provide financial details, but I want to highlight our initial expectations.
We continue to have a strong balance sheet with $324 million of available capital at the close of the third quarter our.
Our projection for the full year is to have spent $137 million in 2023, leaving us approximately $285 million at year end for.
For 2024, we expect our cash burn to be reduced to approximately $40 million or a 70% reduction.
Our strong capital position gives us financial flexibility well into the future as we begin commercial deployments of our carnal generator technology next year.
I will now turn the call over to John to provide a financial update.
Thank you Thomas and good afternoon, starting with our financial results for the quarter. We reported 96000 in revenue from sales of hybrid systems operating expenses totaled $33 3 million compared to $62 9 million in the prior year quarter, which included a onetime charge of $28 8 million relay.
To the purchase of Carnival last year, excluding this charge expenses in 2022% or $34 1 million.
Using this more comparable basis total expenses were down about $1 million in the third quarter, driven by a $2 million reduction in SG&A expenses, partly offset by a $1 million increase in R&D expense.
Total cash consumed in the third quarter was about $31 million compared to $45 million in the third quarter of 2022, including $15 million of cash that was paid as part of the carnal acquisition and comparative cash spend of $31 million in the second quarter of this year.
We finished the third quarter with $324 million of cash short term and long term investments on our balance sheet I want to remind everyone that we maintain a significant share of our capital and longer term investments to take advantage of higher interest rates on longer dated Securities. For example, we currently have about 43% of our capital.
<unk> or $141 million categorized as long term investments for.
For the first nine months of 2023 revenue from hybrid related sales was 672000 down about 300000 compared to the first nine months of 2022.
Year to date operating expenses in 2023 were $103 7 million compared to $128 million for the same period in 2022 or $92 million, excluding the <unk> acquisition charge year to date SG&A expenses were down about $2 million and R&D expenses, excluding the Kronos.
Charge were up about $14 million.
This increase is entirely due to the expensing of powertrain components that were purchased for the first 30 production trucks that we previously planned to sell to customers. This year.
Most of the cost and cash expenditures, we expect for the wind down of powertrain will be incurred in the fourth quarter of this year, including payments made for truck chassis and other components for the initial 30 production trucks, we estimate that total expenses for the fourth quarter will be around $35 million, including.
<unk> expenses that will be incurred to recognize future payments for contractual component purchases employee severance agreements and other expenses related to the wind down of the powertrain business.
Total operating expenses for the year will be approximately $140 million, including expenses for discontinued operations. This is a little higher than our previous guidance of $130 million because of the additional powertrain wind down costs, we expect to finish the year with a total cash and investments balance of around 285.
Or about $10 million higher than our previous guidance, even though we expect no revenue from hyper truck <unk> or hybrid systems for the rest of the year.
We expect to begin receiving payments from customers for early carnal generators stationary deployments in late 2024, and as Thomas noted, we expect a significant decrease in our cash spending after we wind down powertrain operations, we estimate that total cash expenditures will drop from approximately 100.
$37 million this year to approximately $40 million next year. This amount excludes some cash expenditures for powertrain wind down activities that we will incur in 2024 and potential proceeds from powertrain asset sales.
It is important to note that with the cash and investments we have on hand today, along with a slower burn rate for Carl development, we expect to be able to commercialize the carnal generator business without the need to raise additional capital.
To provide investors with more details on our future plans, we will be hosting a technology fireside chat later this quarter to further highlight the unique capabilities of the carnal generator business opportunities for near and long term deployments and key development milestones.
We'll update you about this event in the coming weeks.
With that I will turn the call back over to Thomas for closing remarks.
I want to express my sincere appreciation and gratitude to the entire highly on team that has worked tirelessly and passionately on our powertrain solutions. The development of these products is taking great effort, many long nights and exceptional dedication from our extremely talented team.
We take great pride that trucks outfitted with our hyper truck Eurex powertrain had been on the road logging thousands of miles with great success.
During extended fleet trials, we received overwhelmingly positive feedback about our powertrains performance.
We have not had a single truck breakdown and a fleet was able to drive over 1000 miles in a day, which speaks to the great potential of this technology and the robustness of the product. This is the reason we plan to maintain the technology for potential later use or sale.
Although we are confident that the winding down of the powertrain business is the right move at this time, we are preserving the technology such that if the opportunity arises in the future. It may be reintroduced and utilized to its full potential as the industry matures for now we look forward to the great potential of the carnal generator.
Now we will take your questions.
At this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad.
And your first question comes from the line of Jonathan Schaffer from Northland Capital markets. Your line is open.
Hey, guys.
My first question is just on the incremental movement of initially talking about looking at strategic alternatives for the.
Hi, Richard Good Rx business and then now.
Committing to a path of winding it down.
First just.
Is this a case, where you did go through conversations or solicit or engage with potential buyers folks signed.
<unk> and went through things in.
We weren't able to.
See the eye to eye on value or was this acute where.
You didn't even actually get to that point.
Maybe ran some numbers on a.
Rough valuation or something and decided to not take that next step.
<unk>.
And then did you get evaluation from a third party of any kind and if you could share that.
That's the first question.
Sure. So Bruce I. Appreciate the question is Donovan. So we did run a process, we engaged evercore as our bankers to assist us with this process and we went out and had discussions with dozens of different groups out there and explored.
What strategic options there could be that included looking at potential buyers that included looking at potential industry Rollouts are mergers and upon conclusion of the process and looking at.
What came of it we decided the best interest for all stakeholders was this wind down path and preserving the IP for potential later use.
With that I mean, I think that speaks a lot to just where the market is at right now.
These discussions as I'm sure you can imagine we had a lot of.
Discussions with potential strategic partners or acquirers, and what we found was data themselves or even assessing if they pulled back their own spend internally on electrification just as we're seeing the slowdown in this electric market people are expecting adoption to take a lot longer that also equates to piece.
Bolt pulling back on their spend on electrification in terms of others that are in this space.
The parties that would be comparable to highly on new entrants into the space, where you've seen a lot of them file bankruptcy recently and then other ones are out trying to actively raise financing and in many instances have not been successful at that and so all those factors led us to the decision of this wind down.
Okay and then.
Yes.
Turning to the car now.
I guess first would there be.
The way you've done in the past for hyper check <unk> do you see yourselves maybe.
Maybe this is something you plan to have at the time of the Fireside chat.
Now that it's the focus maybe giving us some more granular.
Detailed kind of timeline on that path to commercialization.
Particular.
<unk> certifications theres the EPA stationary source.
Required.
Ever Whatever's involved that you think youll give us are you planning on giving us a more granular breakdown there.
And one more on carnival.
How do we not repeat the same.
Situation, where with the hyper Chucky Rx.
Talked a lot about excitement from customers.
And of course that changed is there.
Do you have any thoughts around a different approach that could make that stickier.
This time with with Carnival.
Any color there would be great. Thank you.
Yeah, absolutely so let's start with the first one around milestones around Carno. So I just want to highlight a couple here.
We expect that by end of this year, we will start having some discussions around who the initial adoption partners are going to be with the carano and then as we go into next year middle of the year will be.
Kind of final validation of the system that then brings us into actually starting customer deployments in the second half of next year. So we.
We probably will come back with some more granularity around that end.
That's in the Fireside chat.
Share some more details there and then as we go into next year just to set expectations. So those initial customer deployments. We're looking at low single millions. So a couple of million dollars of income that would be coming from those.
Or up revenue that would be coming from those those deployment. So just wanted to kind of set expectations of those will be the initial entrance into the market.
As we think about.
How to not repeat the situation that we're in with powertrain. So.
As we look at kind of the customer discussions on the powertrain side of things.
The shift is just kind of focus too since the cost of electric vehicles are higher upfront. Their thought is is now theyre going to wait to til government mandates really come into place in order to force them to adopt it.
Where we were a couple of years ago was even though the costs were more upfront debt.
It was a strong freight market and fleets youre, saying, yes, we're going to get ahead of this we want to focus on ESG and we want to start adopting electric now theres more of a pullback it's a weak freight market.
The way it is or the pushes let's wait till government mandates are there.
As we look at the generator market. This is already an existing market that we're stepping into rate versus electric vehicles. There are.
Very few number of electric semi trucks that are out on the road versus generators.
Pretty established market already that we're stepping into and we're bringing a very competitively differentiated solution. This isn't a standard generator.
On an internal combustion engine. It gives a lot of flexibilities like fuel agnostic high efficiency low emission low noise low maintenance and so it really brings forward a lot of what the benefits of what a power plant has but bringing it into a solution. That's the size of a generator so going after an already existing market and one where.
There are pain points from the customers and where people need electricity now and they just can't get it from the grid and they're being told they can't get great hookups for 123 or even more in some instances years and that's a market that we feel like we can step in and address which has a very prominent a need right now.
Okay. Thank you I'll take the rest of my questions offline.
Your next question comes from the line of Bill Peterson from Jpmorgan. Your line is open.
Yes, hi, good afternoon, and thanks for taking the questions.
I'd like to get a little bit more details on the history that led to the decision to kind of wind down.
The efforts here.
Think back over the last two years, indeed was a lot of excitement and get the founders program.
Four months ago, Youre still I mean, we're still.
Talking about the cost of borrowing and advantages.
Structure advantages.
So I'm just trying to get a feel for how did.
How does this evolve.
Currently I'm not saying it didn't come out of.
Nowhere I mean, obviously.
The fleet decisions are understandable given their own challenging times, but.
Just the evolution of that and then at this stage looking ahead, how do you see the fleets really adopting any new technologies and they are really going to be a 2027 story.
Do you think about the mix between the various options. They have again like the Nat gas generate option you have.
<unk> and that there was a lot of infrastructure versus lack thereof of other infrastructure.
Infrastructure, especially given the student.
Actually provide such great information across the landscape, whether it be fuel cell.
Hydrogen and so forth how do you how should we think of this evolving from here.
Sure So little history on it.
Kind of getting to this decision so we still like customer interest and engagement and an even fleets.
<unk> fleet trials and.
One thing I want to really reiterate is this was not a decision based on product performance or having reliability issues or things like that actually we've been very very pleased with how the product was outperforming and fleet hands and we're seeing hearing that same feedback from fleets, but I think this is what has really happened as the market has.
<unk> two fleets youre, saying with these vehicles costing a lot more upfront than diesel trucks and as shared we've been experiencing those price increases as well in our components and having discussions with fleets about passing those costs on fleets are expressing that theyre going to really slow down their rate of adoption until they.
Wait for the government mandates to force the adoption and as you pointed out that probably is a later this decade type of a situation and one other thing that gives us concern is theres a lot of discussions out there right now about those government mandates potentially even softening or changing or becoming a long gated to one fleets really need to adopt <unk>.
<unk> and so as we look at the position we were in were more approaching this from a position of strength as opposed to a position of weakness where we're fortunate that we have a strong balance sheet and a strong cash position and we have two really strong technologies within the company, we had powertrain and Cornell and powertrain is facing some of these <unk>.
So we mentioned of the demand changing the cost components going up and the regulatory side of things and as we look at the cargo market opportunity, we see it as a more capital efficient path to market, we're going to be delivering initial customer units next year and the second part of the year. So that's what led us to look at we've got as we can.
Closed out last quarter $324 million of cash available to us and we feel like it's the best decision to put focus on the Carnival go forward take the powertrain technology preserve it put it on the shelf for potential later use.
And then for the time being focused on carnival.
Yes.
Okay.
Yes, okay well understood.
I'm, just trying to get a more bigger picture view on how you're viewing the competitive landscape for stationary power market.
Or use cases like around EV charging you've heard people talk about data center backup.
Theres different different business models, and later approach it whether it be.
Hello.
Turnkey solutions generated plus so I'm trying to get a feel for how you see the landscape.
For this and where youre going to be focusing on over the next few years.
Yes.
Sure. So there's a couple of different markets or anything about the power generation side of things and maybe just start off with just clarify so we're looking at being a generator of electricity.
Versus some of these solutions that you mentioned like a battery is more going to to help with.
Saving conserving electricity and then being able to use it at a later date as we think about what is really needed. We think it is both but there is a lot of demand for just more electricity production.
Especially as you think about the EV space.
More charges are being deployed Substations don't have electricity available to actually service. Some of these chargers in some instances and we're enabling an opportunity where we could just bring a generator out and actually produce electricity locally at that site.
There are a lot of other companies in this space some are using more conventional internal combustion engines in order to produce that electricity and then some others are using things like fuel cells in order to produce electricity.
What we see as our advantages in internal combustion engine does not have great efficiency requires a lot of maintenance.
And from an emissions and pollution standpoint, many are still running on diesel fuel and that's.
That's not great for our environment right I don't think we want EV Chargers that are are sitting there be empowered by a diesel generator. So we're looking at the <unk> solution is bringing many of the benefits from an emissions and pollution standpoint, similar to what a fuel cell brings forward, but where we're bringing it with low maintenance and the cost that we are looking at.
It is coming in a lot less than where fuel cells are at so as mentioned before it's kind of bringing forward. Many benefits that normally you see in a power plant, but bringing it forward in a size like a conventional generator that can be deployed locally and in produce your own electricity at a cost affordable rate.
Alright, thanks for that I'll drop back in the queue.
And again, if you would like to ask a question Press Star then the number one on your telephone keypad. Your next question comes from the line of from Andres Sheppard from Cantor Fitzgerald. Your line is open.
Hey, guys. This is a non Don for Andreas Thanks for taking our questions.
So we were just wondering with respect to the carnal generator, what you would.
Revenue to look like into commercialization and.
Prior to commercialization as we as we're in that period right now.
Sure. So commercialization will start at the later part of next year and as mentioned, we're expecting just a couple of million dollars of revenue coming in next year from that solution as we get further into this transition obviously, we're just announcing it today. So as we get into next year. The first half of next year, we plan on coming back and being.
<unk> to share more on what we think that future projections of it are.
The generator space the production of electricity market is a huge market. So this is not a.
Market size issue by any means this is a huge addressable market, we're going after but we plan on coming back in the first half of next year with.
Projections on what we're expecting from an adoption rate standpoint.
Got it appreciate the color and with respect to.
Pricing and competitors, how do you expect to see pricing for the carnal generator and comparable products and services.
So we'll come back with more granularity on this but I just wanted to kind of give some directional numbers. So we are going to be.
Expensive than a conventional diesel engine.
An internal combustion engine, but we are looking at being substantially less than some of the other solutions like fuel cells that are coming out to the market, but as mentioned, bringing forward a lot of the benefits of those other solutions like the ability to run on hydrogen having that low maintenance side of things. So.
So I think this is going to be a pretty attractive and compelling solution for for the space now it's going to be important for us to focus on where do we deploy these right in the beginning it doesn't make sense for us to go buy go aftermarket opportunities like standby power generation or emergency.
Operations, where the generator kicks on for one or two hours a year.
We suspect that the conventional diesel engine is going to still be the solution. They are at least for the time being but we see our opportunity being more prime power applications, where someone wants to become less dependent on the grid and actually make their own electricity, we see peak shaving opportunities the ability to be able to take flare.
Gas and convert that into electricity take.
Pollution coming off of landfills produced electricity with that APA.
Operations, where youre going to really utilize the generator and have high uptime of it that's where we see the carnero being significantly differentiate it and the great News is there is plenty of opportunities that can utilize that think about warehouses hotels hospitals. Those are all applications that we see to garner generator being a <unk>.
<unk> fit.
Got it appreciate it and just last really quick and easy one if I could.
I just wanted to make sure I have this right youre not expecting to deliver any of the 30 trucks in the order book or hybrid trucks going forward is that correct.
Yes, that's correct. So we will generate any more revenue from the powertrain business.
From selling hybrid systems or the production trucks, we've talked about.
That business is being wound down.
Sounds good thanks.
Thanks, again for taking my questions I'll pass it on.
Your next question comes from the line of Shanghai from you.
Your line is open.
Hi, guys.
My question, So just a Walmart question.
<unk> sales also the Qualcomm in consultants on this line.
So sales of the carnal generated in 2025, we will come back with more information on that in the first half of next year.
This stage have given some directional numbers a couple of million dollars in revenue next year from from the cargo is expected in the second half of next year, but as mentioned we're just starting this this transition now obviously it was just announced today and so we'll be coming back with with more granularity on future projections, just just to add to that so as Thomas mentioned.
The units next year, our deployments with initial real customers theyre going to use them for.
Power benefits.
We'll still be doing R&D at the time.
But you can imagine after that we will start ramping up those deployments and as Thomas mentioned, we'll have a little bit better visibility as we make this strategic shift in and kind of reevaluate as we're shifting resources over from powertrain to current on what that looks like but.
Clearly, we're not we're just going to be ramping up from what we expect.
Deliveries to be next year there'll be a good starting point for for continued growth.
Okay very helpful.
And this concludes our question and answer portion of today's call. At this time I would like to turn the conference back over to highly on CEO Thomas Healey for some final closing remarks.
Well. Thank you everyone for joining today's call obviously, a lot of news shared on today's earnings call around.
The discontinuation of our powertrain business, putting that technology.
On the shelf preserving it for potential later use in the pivot to focusing in on the carnal generator for our go forward strategy for the time being we.
We do believe that this is the right shift for for the company for stakeholders and shareholders and we're excited to go execute on this path forward and.
And look to share this exciting story as we continue on with with our shareholder base. So thank you for joining today and more to come in the quarters ahead.
Ladies and gentlemen, this does conclude today's conference call you may all disconnect and have a wonderful day.
So thank you for joining today.