Q3 2023 Pressure BioSciences Inc Earnings Call

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Please continue to hold your conference will be getting one minute. Please continue to hold your conference will begin momentarily. Thank you.

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Greetings and welcome.

Welcome to the pressure Biosciences, Q3, and year to date investor call and business update.

At this time all participants are in a listen only mode. If anyone should require operator assistance. During the conference. Please press star zero on your telephone keypad. Please note. This conference is being recorded I will now turn the conference over to your host Richard Schumacher, President and CEO you may begin.

Thank you John appreciate it and thanks, everybody for joining us I know it's.

Not as convenient as usual it is a holiday week and some of you may actually already has started your holidays. So I apologize that it ran into a holiday week, but we are we.

We had a number of things that we had to get done with our auditors to make sure everything was in there and we did it.

And we couldn't get it done and I didn't want to file it on a Friday.

So we filed it yesterday.

So if I forget.

Forget I want to wish everybody happy Thanksgiving and a happy holiday. Some of you I know many of you personally some of you know that I went through Hell.

August I had open heart surgery.

I had triple bypass and aortic valve replaced and.

So for me I have a lot personally this year.

In addition to my normal do you think.

Did you give thanks for so I'm.

I'm back I'm at it I've been at it for.

For for a number of weeks now so.

We don't take anything for granted I was I'm, a healthy Guy I walk.

A lot every day, but one day my chest started hurting in a week and a month later I was in the.

First six and a half hour operation. So the guys. We all have something to get as many things to give thinks about unless you remember that on Thanksgiving and everyday so I'm going to start by reading some some remarks that we need to read upfront.

The following remarks may constitute forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995 forward looking statements involve known and unknown risks uncertainties and other factors, which may cause the actual results performance or achievements of the company to be materially different from any future results performance or achievements expressed or implied by such forward looking statements.

As such.

Such factors include among others those detailed from time to time in the company's filings with the Securities and Exchange Commission, we expressly disclaim.

Any obligation or undertaking to release publicly any updates or revisions to any forward looking statements to reflect any change in our expectations or change in events conditions or circumstances on which any such statement is based.

<unk> today is similar to the agenda as in the past first I want to welcome back.

Did the PVA My financial review and business update Jeff Peterson, Jeff is P. B as board Chairman.

Welcome Jeff.

It's a pleasure to join you again.

For today's meeting we're going to start with a very brief discussion of the 2023 third quarter financial results and year to date as I mentioned before the Q has been filed the press releases out we'll take questions at the end, but there's no need to really spend a lot of time going through the results because everybody has.

I think what's more important is to talk about the accomplishments that we've made and also talk about our goals.

For the fourth quarter and next year a lot of <unk>.

Very very exciting things are going on now some of you.

And then I talk do you think we've had some exciting exciting times in the past the quarters.

Quarters in the past year or two and we have but I think the best is yet to come.

And there's a lot of very very exciting things that are going on as we move further into commercializing Oh this year.

So that's gonna be it's gonna be a fun time for I think not only employees here, but also for for our investors and after we briefly go through the finances were going to answer a few questions.

That are have been sent in and we're probably going to build them in to remarks that Jeff and I make and if time remaining of course, where we as always we do our best to open up the phone lines.

So.

First I'm going to briefly talk about the financial overview of Q3 versus a Q3 'twenty two.

And the year and the year to date you know we look at this as a as a good comparatively at a very good.

Third quarter and of course three quarters to date.

Basically it it it it matched our record.

Nine months to date that we've ever had.

So it was a good one but as we said and John said in the press release, it's not good enough, where we're not we're not happy with in with numbers being where they are and we want to see a zero or two after those numbers and where we John's been and working hard on on.

What we've learned over the past year, a nine months in and how do we really start to increase these revenues the way, we all want them and quite frankly.

We know that a lot of its going to rest on ultra share and we just started shipping our older share and taking orders.

Uh huh.

In the summer and shifting on October 2nd.

And so that is where a lot of this is going to happen, but you know because it's not happening yet it it's really our core business or our pressure cycling technology instruments.

Even though we're not putting a lot of effort into them in a lot of focus on them.

We're having we've had a terrific year, so far with placing instruments around the world are we signed up but maybe the best distributor in India, which is a burgeoning economy there for what we do what we sell so our core business is doing well and.

We say wait until ultra share starts hitting and this is not something that we believe is going to take years to hit we think everyone will understand how big ultra sure can be over the coming few weeks and months and so that's what's so exciting about it so our our oh.

Revenue.

Our.

Revenue in total instrument sales and consumable sales.

Were all better than last year and through three quarters. Our revenue total revenue instrument sales consumable sales are are all better than than last year and as I said, not just better than last year, but equal to or better than any quarter or three quarters that we've had in the past.

So we're happy with that because it brings in cash flow, but we're not satisfied with it and John is working very hard.

To do whatever it's going to take to continue to grow the core business, while older sheer starts to come on.

And come on strong in 'twenty 'twenty four as we believe it will.

A couple of important things on the financial in.

The first thing is that we redo and this is in the in the press release hard to find it in the in the Q, but it's in the press release, our cash burn was reduced by about 30% year over year. So in the third quarter of this year.

Our cash burn was 732000 or about little over 220000, a month 732 for the quarter, which was 30% less than the cash burn a year ago and for the nine months to date, our cash burn was about $2 million.

Which compares favorably to $3 million last year in the nine months first nine months of 2022, so we've taken it from about 335000 cash.

Cash required for operations in 2022 down to 220000 in 2023. So we're we're watching very carefully our cash.

Some of the cash burn is because we have investors who are willing to take stock rather than cash which is helpful to us are at the moment. So the stock number of shares has gone up.

But the cash burn, which is very important is gone down. The other thing is operating loss our operating loss was down slightly in the third quarter of this year compared to the same quarter last year about 5%.

But the operating loss was down significantly in the first nine months, if you take out the the one time a one time charges that were in the third quarter that we don't expect to see again, you take them out.

And our our cash our operating loss was down significantly.

So we put together a number of our accomplishments and we won't spend a lot Jeff and I are going to talk about several as we go through but in the in the press release, you put together and in the end in the Q. We put together a number of accomplishments are I think the the number one and I've asked Geoff who is very close.

Let's do it if he would speak to it in just a minute, but the number one accomplishment clearly was the publication in a peer reviewed journal by one of the top cannabis and natural products groups in the country a paper on our old to sheer nano emulsion.

Of C E D.

It was clearly.

The best thing that's happened to us in the quarter in terms of of accomplishments, our operational accomplishments and in and the Doctor also Les talked about the unprecedented speed efficiency reliability and primarily bioavailability that he found in his animal study use.

<unk>, our nano C B D.

And I'm going to ask Jeff to.

To go into that a little bit more detail in and if there's questions at the end, we'll we'll take them. We also announced a distribution agreement with bio screen, which is in a lot of People's estimation. The number one life science distributor in India. So we're very very happy they purchased one instrument to start training.

And we sent the gym bengie over to train them on it but they're looking for.

They're telling us they think theyre going to have a lot of sales in 2024. So we're excited very excited about that.

We're excited that the veteran service team.

Who gave US an order an initial order for four or 500 models of nano CBD that they were going to white label.

They increased it by tenfold they multiply it by 10 and said no we need 5000 models.

They have a a relationship with the mixed martial arts they'll look door. If you go to their website.

DSD vendor veteran service team DSD Dot org.

You can both order the nano C V D from them.

And they decided that they're going to start it off selling it at a very very reasonable price to try to seed the market and let people know what a good product that is so V. S D Dot org and.

And so our we got our first Canadian pattern, which brings us up to 43 issued patents and eight issued patents in an older share in 17 more that are pending around the world and ultra share. So our IP estate continues to grow and grow and in the right area, which is an old.

Sure.

There was a there was a press release, where we talked about the ultra share process nano CBD.

In being looked at as a way to extend the shelf life of fresh produce fruits and vegetables. There's a lot of of data out there that that true nanos CBD can in fact extend the lifetime and when you when you look at things like strawberries that in five days.

Are pretty bad.

I saw strawberries in 15 days that were sprayed with a nano CBD that looked like they were picked that day. So we're looking at this we've had several people call us about this and Ohio State who is our partner is continuing to publish in and work on studies.

Particularly in the food and beverage area about the uses of of older sheer.

Technology. So those are some those are some of wonderful things that have happened in the in the third quarter in a couple of them and in the year to date.

But what I like to do now is turn it to Jeff and we will try to be brief.

But.

But I I you know this is my fourth publically traded company I've been in this arena for 30 plus years in terms of starting and running public companies in and this is one of the most important press releases announcements that I've had on any of the four public companies I've had.

We've had we've had great announcements.

Before but I'd have to put this in the in the top three in terms of what its impact will be it doesn't it hasn't had that impact yet where we're going to fix that I was talking to somebody today.

Who said, it's a it's a shame that fell on deaf ears, Rick, but I I have the ear of a lot of people and and I'm going to get the word out so.

The world needs to know what professor also I found and what was in that journal article So to do a short synopsis, Jeff I'm going to turn it over to you.

Thanks, Rick.

So to set the stage for this.

I think it's important for everybody to.

Understand what the significance and the differentiation.

The Ultrashape technology is here.

There has been.

A considerable amount published over the years about the impact of nano emulsions, and improving absorption and bioavailability of whatever active material and the oil is desired.

And the critical issue is that as these oil droplets good.

Incredibly tiny below 100 nanometers.

Maybe don or 50 nanometer kind of size.

Those are the size of the oral goblet, where the active molecules that are oil soluble in that ballpark.

Just can't hide from the body anymore. After it's gone inside traditionally an emotional with larger crop lifts most of the active product just passes through the body. It is excreted. So she is tiny droplets are controlling the size of the tiny droplets are there consistently at that.

<unk> that delivers the impact and fast delivery and a full or nearly full load.

The product for.

For bioavailability to the Humana.

The playoffs that ultimately is consuming it.

There are other nano emulsion technologies out there that have struggled with the ability to scale to industrial scale and serve customer base is adequately or.

Or that struggle with the heat exposure they give to the product that could damage the products or what are inconsistent and the size of the droplets and therefore, you have an unstable emulsions.

Rob would start to evaporate into larger ones in the emulsion breaks down so the critical benefit here of ultra shares its ability to work at industrial scale.

Literally able to produce you know.

Multiple leaders a minute and our larger equipment.

And out of a small or a D sizes that can do small batches effectively for partners as well.

But it can do that at an industrial scale and make very consistent drop sizes that we can tune to where we need it whether it's maybe nanometers 50 nanometers, whatever we're getting down to the size of large molecules.

Or small numbers on a reasonably large molecules when you're getting down to that size.

So we have known just based on past literature.

Our ultrashort products will go to have a usual effectiveness.

We were already receiving information all anecdotal accounts for the various users and additional products that we were testing in the market place.

Different arenas, whether it was skincare or are in the cannabis arena.

Or in potential nutraceutical applications. So we're getting the anecdotal validation we ran some consumer testing that will further.

Did any of that for us, but what was really missing was to haul a peer reviewed scientific study by well recognized leaders.

We'll provide that kind of hardcore validation of the technology.

And professor also Les and his team.

The ideal platform for us to do that.

Doctor else away.

The first person licensed by the U S government.

For marijuana controlled marijuana grow sanction via development and throw some of that early activity over 40 years ago.

Merged to become one of the leading Canada's researchers in the world are arguably probably at the top.

Two or three in the world.

When he heard about.

Some of the early results that we are receiving and what our process did he.

He stepped right up to want to do.

And initial preclinical study in rats, and they're an excellent platform for a better seen what can happen.

He runs and other large animals and so on.

And basically.

Jose study in which they would have a full set of rats that receive the product intravenously.

And then another set of reps that won't get it.

Or are they actually go straight down to the stomach.

So you would have a gastrointestinal absorption back.

And.

When he was planning to study they originally were going to take the first data point, it's 30 minutes about another 60 minutes and so on and we said Oh no we need to see this at least at five point in the whole of your points and based on other work done in the past they felt like that was it.

It'll be a waste of money.

We absolutely want it at five minutes and a shirt off as they started doing this study he came back and said well you guys were right. We have a measurable results at the very first five minute test point.

And they went on to complete this study.

Which reveals a number.

Several important points for users and for our potential partners across many industries.

And.

One of the most important point is today with CBD.

Being going down for gastrointestinal pathway.

The bioavailability in the bloodstream is in the 5% to 6% of the amount adjusted arena.

Look that up in Wikipedia or various other journal.

Articles.

And.

Using our ultra sheer that'll emulsified CBD via the gastro intestinal route.

<unk> 25 per cent bioavailability, so we're talking about four to five X.

A fivefold increase in bioavailability in the circulating blood feeding the tissues of your body.

Over what torrent technologies can do.

More importantly.

There was.

It is fascinating and critical other conclusion and that is the.

Measure not just the CBD, but the metabolites of CBD.

And what people may not realize is everything absorbed through the got into the bloodstream is not going in a vein to the heart. It goes in a vain directly to the liver and most of the CBD is very readily metabolized in the liver. So that's one of the reasons you see such low levels circulating in the blood.

But he showed that 80% of the CBD was absorbed it like that so the vast majority of got metabolized in the liver and only 5%, whereas circulating in the.

In the blood in a normal case or 25% in the case of ultra share. So we were so effective in getting 80% of the ultrashape absorbed at 25% was available in the circulating in blood.

What that really Tees up for us for our full of potential consumers and for partners. It has the potential to not go through the gastrointestinal route.

Use the CBD a spray into the cheek under the toe robbed into the skin, but there are other routes available and.

By doing that you don't go directly to deliver upon absorption you go directly into the circulating blood screen.

The active material to the body.

That only has a percentage of the blood flowing through the liver and being metabolized overtime. So that was just a screaming important result that came very clearly out of that study.

We're very appreciative of that and and although not everybody is reading the study at a similar level.

You know two and two together and you get you get 10 out of that.

It is something that we've been able to share with a variety of major potential partners.

That has quickly let us into meetings discussions and potential strategic outcomes.

We're actively developing that breaks alluded too so we're very excited about it and that.

A peer reviewed journal article was a key addition into our Arsenal in terms of how we accelerate the company forward.

Rick I'll go back to you.

Yes. Thank you I think that's very clear and and hopefully it gives.

Some of our participants may be a different <unk>.

Yeah, a different understanding of how important this is extremely important and I'll add one more thing to what you said.

And that the this is all about CBD, but the problem with bioavailability is in any oil based active ingredient in <unk>.

<unk>. So if there is an active ingredient.

In oil we.

We believe that ultra shear can make it more by available more stable.

More essentially water soluble.

We've done NASCAR pharmaceutics.

What's that faster acting as well.

Faster acting yes.

And we've done pharmaceuticals, we've done Nutraceuticals, we've done agrochemicals, we've done Cosmos, Sutter calls and not not a lot, but a couple on every category.

And what we what we know which is amazing and very good for us as shareholders is that the ultra share process does not adversely affect so far it has not had any adverse effects on the active ingredient no matter what it is inside the oil.

What we do is very different we tell we tend to tell people that we are using physics not chemistry chemistries.

Can be bad it would be good but it can be bad you're you're you're ingesting. This material that that people are putting whatever chemical they're putting into whatever food or beverage youre eating youre ingesting that chemical.

We are using the all natural all plant based.

<unk> and the important thing is that the active ingredient in any category is not harmed but becomes much more.

Much more soluble and much more as Jeff says fast acting so our our sights are on many things CBD is just the beginning we've done some THC work and prove the point by if you guys will remember three different studies that we published on in press releases showed.

Three to five minutes.

Effects, where where individuals and using our spray we're feeling the effects of THC, which is unheard of.

I had a conversation over the weekend and someone said fast acting THC is 15 minutes and I said, how about three to five so what this means is whether its vitamin D. Three are cookie them in or prednisone.

Our name oil or what or whatever it is aster xanthan, it which is the world's most potent anti oxidant.

We're going to get it in the bloodstream very quickly.

And our spray under that down here in the back of the cheap and so it opens up a lot of doors, we're talking to a number of people as Jeff said, not just about CBD, but about many other active ingredients that might be used for enhancing sleep and enhancing immune response and things.

Like that so, but we're going to put a lot of effort into CBD because its a it is a growing market. It is a multibillion dollar market and there is only one.

On the market and this drug is used specifically for.

Mostly children who have.

Hum epileptic seizures related to two different.

Diseases and these this CBD.

And Cochin stops not ours, but the one on the market has the ability to stop those seizures.

And in other drugs don't believe we've been approached and Leif talked to two other pharmaceutical companies or whatever that saying well. This you can scale. It it's very active it's more bio available and then conclusions section of Professor <unk> paper, He said that historically <unk> he's done a.

<unk>, which is the drug that's on the market and he found us to be our nano to be two to two and a half times more bio available. So.

If you're interested in becoming an getting a drug that's more by available.

And we have a method we think it's the best in the World SDN class in the world of delivering a nano emulsion with with those characteristics. So we're talking to a number of people. So it's exciting times.

Q4 for Us and we we are happy that the papers out and we're gonna be working with the others four additional papers and additional studies.

So.

I want to I wanted to talk about another thing that people have written about and said please talk about your facility.

Six months ago, we talked about a short term solution because the facility here.

We're about 30 miles south of Boston isn't isn't we're in an office park with an office building it's.

Its not conducive for menu for large scale manufacturing, we can make it work for the orders we've taken so far but this is not a place we want to be in 2024. When we believe we're going to be getting a number of of orders are big orders and that's just for C. B D. Let alone. The fact that we were.

Want to start working with vitamins and supplements and many other things so where we're looking at other spaces.

We've given notice to our landlord here Ann our landlord north of Boston, where we have a small footprint with our R&D lab, we're going to combine the two somewhere in between that the the R&D lab and US here in in eastern mass and we have three or four places we had one place in particular that we.

Like a lot and we got some very encouraging news Friday from the landlord and we think that will that'll be followed up with something in writing today or tomorrow.

And this is a facility that has for manufacturing my guess, it's got more than 10 times the amount of space available for manufacturing, it's not 10 times, the total space, but here, 90% of our space here is often our offices and.

And 80% or 90% of this space in this building. We're looking at is really meant for manufacturing. So we're excited about about this we're already starting to look at the move we don't want to have a lot of downtime. So one of the ways that we're going to get around that is I visited a another site in Massachusetts.

Sits with several of my team members yesterday I talked to the gentleman. Today. This is a group that has a license to prepare CBD in the state I also have a license for THC in the state of Massachusetts.

They have a lab space that is open they have very good strong technical people on staff. They would they wanted to use our material anyway and they are a game to have us instead of moving our equipment to the new lab and having them sit there until we build it out.

We're thinking about moving it to this person's extra lab space and we might be down only instead of being down a longer period it might be down for just a couple of weeks and we'll be back up at you know in the middle of December Cranking away. It hit this facility being able to supply CBD through his people.

And then his license. So we're excited about the new space, because it'll give us room to grow well beyond just CBD.

And we've developed an interim plan that is.

It looks like it's going to work quite well do allow us to be down very very short period of time, only while we move the instrument and train the folks at the other place and be back up and in the 10th or 15th of December making product. They can be shipped so we were asked about that because.

Everyone a lot of people knew that our lease is coming to an end at the end of December and that we were given notice at both sites and so the hopefully the best of all things will happen not only will we get a site that will.

Work with us for as we grow multiples of what we are now but also we have an interim solution. So we're not going to be down for more than a week or two we are talking versus.

Which could be much longer so I wanted to I wanted to mention that.

I wanted to mentioned the pattern, we continue to file patents, we have and in ultra here. We have 43 total patents in the company eight of them are issued in the area of Otis year, It's an amazing technology, our guys have developed but.

But we have 17 patents that are pending.

And we have more patents that'll be going in so we're going to we're going to build this picket fence around this technology.

So that if we take it the drug route and go to F D, a and and find a partner and get this thing approved.

We hope to have enough patents to protect this and if we continue.

Continue which we expect you to make it available around.

Around the country and around North America.

For for use in as it is in edible or a topical.

We will have the space to do that too. So that's a very exciting that we're able to had all of those options available to us.

So and the last thing I'll mention.

Go ahead, Jeff.

Rick I was just yesterday.

Relative to the facilities and capacity side of this but we're also working with a partner in California.

Capacity, serving the cannabis industry both.

Both on the CBD THC side, so we're looking for a.

A two prong approach in terms of having capacity in place.

And as we have more equipment available to extend our footprint here in California to be able to.

For other markets with.

R&D development formulation optimization toll manufacturing and so on.

So we have.

Two two footprints around the U S.

What kind of servicing our clients as we grow and move toward.

Our Elisa license model downstream.

Absolutely.

Great Great a great opportunity in California, obviously cannabis has been there and license longer than almost maybe maybe longer than any state in the union.

We have great people that were working with at that Jeff knows quite well and has helped set all of this stuff up.

And.

My My my Big disappointment as I only have one instrument right now and that instrument needs can be loaned part time to this other place in Massachusetts, but it needs to come to our new facility in January.

And if we had more we'd be shipping one to California, and leaving one and the site in Massachusetts, but we.

We are building a second one we're not that far away from having a second one done a we've.

Purchased the most expensive parts over the past six to nine months and now we're already in the remaining parts and we're also building three of our first generation.

Instruments that are small bench top instruments, which we have one in California, that's been used quite effectively and we'll probably send the second one out there. So they have not only a backup of double the capacity.

So all of this is being done concomitant with everything else that we're doing making sure that we are that we're always going to be able to make product and ship product.

So building. These instruments. He added extra instruments is is very very important the last thing I'll mention and then I might ask Jeff to talk about something.

The last thing I'll mention is that we do we've talked before about several companies that we work with that are multinational billion dollar companies that are intrigued and working with US I got an email earlier in about an hour ago from one of them and it's it's one of it's it's one of the law.

Larger companies in the world in its business and talking about setting up something for maybe next week for the next meeting so our goal and expectation is that.

Two or three of these are being worked on at least one maybe two and 2024 and it could be in January it could be in December.

We're pushing for January February.

He is going to turn into from a pilot production R&D into where we become a.

Vendor of theirs.

Or we bring an instrument in there later in the year. So that we not just do it here, but they can do it themselves the nano where most of vacation. So we continue to work with two or 3 billion dollar companies that have.

Have a need for what we have and push them to the point, where they can start.

Paying big dollars for us supplying them material or setting them up with instrumentation and having at least in license with them.

So the the last thing I would I would mention is that.

You know, Jeff Jeff talked before in the past about.

Complementary technology that could be part of an accretive merger acquisition of roll up it could be part of you know maybe selling off some of our non core businesses, but.

I think and I get a lot of questions from investors about this because this is certainly a good way to non dilutive way generally to bring in money. So Jeff I don't know if you want to you've been involved in some of these discussions if you want to just take that for a second.

Yes, I'm happy to Rick.

So.

The challenge for the company.

And of course over this last couple of years as we've been developing ultra here and bring it to market and getting the initial studies done as we've talked about some.

A critical part of our of our challenge has been.

Just the funding of the company in order to scale to serve the emerging opportunities. We have we've been there are very limited in terms of our financial capacity to literally order all of the product that we need to make equipment and serve the opportunities that we're developing.

So it's been frustrating for the team and frustrating and placing some of the advancements.

And to address that.

We continuously review the opportunities at hand.

Either to sell a noncore asset or otherwise you know partner it and turn that into.

A cash generating an opportunity to help the company advanced faster in other areas.

And we certainly given evidence of some of the.

The.

Progress being made in the other sectors and barrel fold we've.

We've talked about.

A major <unk>.

Leader in the biopharmaceutical contract manufacturing space has.

Purchased equipment after a successful early phases of R&D programs with us.

Using the barrel sold equipment.

And has signaled interest in potentially.

Getting equipment into multiple other sites.

And that may be measured in tens or dozens of other sites.

Got it itself would be a major opportunity for us but the potential.

To work with partners of that scale.

Potential deeper strategic arrangement, whether we use so off.

Asset or partner at fab.

Fashion to generate cash for the business as an attractive opportunity for us.

Certainly possibilities of doing that within the P. C pressure cycling technology area.

Four subsets of that with our with partners that have the capacity to do something in a strategic relationship level remains of interest.

And of course with.

Barrels here in ultra here.

The opportunity now being accelerated by the publication of the peer reviewed article the opportunity for us.

To enter into some strategic partnerships.

<unk> merger acquisition of arrangements with some.

So significant players.

Across any or many of the fields that we've been talking about from whether it's the the cannabis CBD THC arena.

We are.

Our interest in the THC arena is really to keep that.

Arms like separation from the mainstream activities of the company and to use more traditional licensing structures there.

But certainly CBD other nutraceuticals and the skincare and cosmetics arena.

Essentially in the pharmaceutical arena.

The impact of this in the pharmaceutical arena.

As we've alluded to earlier.

It can be so large and effective products that are $1 billion plus products.

That as the sinks in for the perspective.

Partners and users.

Or even folks that.

See this as something that could be competitive.

Our interest in the pharmaceutical market.

There are a number of drivers that could could be behind the decision, making processes, but the opportunity for a strategic.

Strategic acquisition merger activity arising out of that remains high and we're actively pursuing a number of avenues there.

So I just wanted to.

Reassure.

<unk> listening investor audience.

We continue to examine strategic options.

Diligently.

So Jeff I hear a lot that that that a lot of our investors that we hear from a lot understand that we have tremendous technology and and maybe don't understand why we havent turned that into zillions of dollars. So far it takes time.

It takes a lot of things and if theres a scale out there of importance of of of information getting out there and the reaction to it in our stock I don't know if there's anything that's a better display of of how disjointed. It is then the paper that was published.

Paper.

Is enormously important and and it did not have an effect on the stock, but it doesn't mean, it's not going to have an effect on the stock. It doesn't mean it hasn't had an effect on our on opening doors and opening opportunities for us and it's only been two weeks and I can assure our listeners that that the value of that.

Or it goes so far beyond its very shortsighted for someone to look at the stock price and think Oh. It didn't have an effect on the stock.

That paper is going to have an effect on this company for years to come and it's already started we've had people calling us taking our phone calls.

Having meetings that we could only dream about three or four weeks ago. So we need to.

Let everyone know that that paper is immensely important for a number of reasons many of which you went through Jeff and and its its importance.

The old tip of the iceberg, we saw there.

First inch of the iceberg.

That paper is going to have some enormous impact on us.

Every day every week every month going forward.

So we even use it for four non cannabis we use it for.

Showing people.

How effective our system is whether its cannabis or or a nutraceutical or pharmaceutical so I'll leave it at that.

But I'm, hoping that that investors that listen today or hear this today.

Understand that it was very difficult to get one of the top people in the world to do this and to have the data that were published in a peer reviewed journal.

As strong as they were that impact.

Is.

Is a is a tiny tiny impact so far compared to what it's going to be a month from now and a year from now in my opinion.

So I think the results will be manifest in and further.

News developing.

Coming out over the next several weeks.

Yep.

Yes, I agree.

So yes.

Yes, I am glad you point that out I think it's important to say this is not something where.

Investors and listeners have to say, okay. So I heard with Schumacher said and.

A year for now let's see if it happens now we this is a there isn't a day that's gone by we're I Havent had.

Interesting.

Happening that related to this paper someone call I mean, I didn't expect the meeting someone.

<unk> taken a meeting that we couldnt get before someone calling us, saying, Hey did you ever think about doing this and.

And the fact that it is you've got a strong set of patents and many more coming is is also extremely important here.

So we have time for a question or two and.

So.

I want to open it up John too.

Did a floor if theres anybody there that would like to ask something we it's 55 minutes in so we only have four minutes left but we're not going to go over an hour.

Absolutely at this time, we will be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad pressing star two will remove you from the queue should your question be answered for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys one.

Please while we poll for questions.

First question comes from Murray Jensen private Investor worry. Please proceed.

Hey, guys can you hear me.

Hear you great Dori.

Actually I was glad to hear your Rec I'm glad your house is good now and you sound good and strong. So that's that's great. That's all that matters.

End of the day.

I keep going back to that yeah, I keep going back to the agro chemical I wanted to say in 2020, we put.

182 million into this end of this call and you know what was the sudden this Q15 K for the.

Revenues on the Agrochemical and this this total addressable market in the U S is absolutely enormous.

This isn't going to be one of your assets assets that you're going to potentially look at to get rid of <unk>.

Are you still looking at the agro chemical as you know a huge a huge revenue stream.

The.

I have to say nothing is off limits.

I say that a little tongue in cheek, because I can't imagine.

If someone wants to pay us what we think ultra shear is is worth then we'll listen but it's going to be a very big number.

So we're going to look at everything Roy I I'm not going to be specific here agrochemical powerful pressure cycling technology. All of these are they all have a great future, but but.

But none of them none of them as big as agriculture is none of them are is big in our opinion as ultra here as it is.

It just it just flows into so many.

Food beverage and pharmaceutical it just it is so big so nothing's off limits.

But right now our focus is is getting is moving this company in the next 45 days and getting ourselves up and running with Oh yeah.

All I'll add to that Rick that.

<unk> certainly is one of the sectors of strategic interest to us for ultra here and for ultra sure to have transformative impact within that industry and there are a number of just outstanding fit sort ultra share there, but in the order of priorities.

We.

Look at who front of us.

The profit margins in the agro Cam are quite a lot lower than we're dealing with and nutraceutical pharmaceutical.

Kosmos suitable spaces.

So our priority focus is really on those arenas first.

But we say agro come there's a large opportunity for ultra share going forward as well.

Alright.

That's where I was I was curious about I mean, we've got a lot of product on shelf are ready to ship and its now ship and so if we could ship it to somebody that wants it that would be great because that was oh, a large and investment with little to no return on it so.

Sure.

Yeah, and then they can't the Canadian the Canadian patent Rick do you see that.

Are you getting much information from that that the prevention all would that be for Providence license per each Providence something of that nature are you looking at par.

No.

Rory will go to.

Maybe we can get one more question and I I would just say that it's our first Canadian pattern.

It's in it's in all the provinces, it's a Canadian pattern and four of this year. So where were right now were focused on the U S. It's a lot easier to.

To do that but we have our eyes on Canada.

Next year and now we have some protection.

Okay very good.

Let's try it one more question there John.

Yes. The next question comes from Kurt Trevor Kurt. Please proceed hi, rich rich I, just wondered what was going on with our state licensing efforts that we projected I think it was around April of this year I was just wondering where we stand.

Yeah, It's a it's still in progress and one of the issues of course is and you know we've been we've been we've made it clear that we've been working under someone's license.

Someone else's license and I already mentioned Tonight that we have a gentleman yesterday, we met with that that will take the equipment and run it as if we're running at under his license.

We have the mood Kurt so once we get moved and settled in which I don't think will take much more than the month of January and during which time, we will be making product.

Elsewhere in Massachusetts will move the instrument and and we'll deal with it at that time, but it's it's right now it's not stopping us from doing anything.

I was basically referring to moneys that we thought we would be getting in that we're going to be very helpful.

With respect to the state license.

Yeah weren't where you're going to try to get five state licenses and sell that Oh, that's different I apologize I apologize I I thought you were talking about us getting our state license.

No.

We did not we did not have a lot of takers, we didn't have any takers, obviously in selling the state license.

I think that's.

I think that might change based upon what happened in the peer reviewed journal 10 days ago.

Alright, great. Okay. Thank you.

You bet.

We have no further questions in queue.

That's that's good because we have no further time in Q.

I appreciate everybody again, a happy Thanksgiving everybody needs to remember that that you know.

No none of us are guaranteed.

Anything in life.

And so I found that out firsthand and.

The doctors that I should add a heart attack when as I was walking in August when I, when my chest blew up and I waited 15 minutes for it to come down you said, you're lucky that could have been your your death, but I had collateral blood flow. So I learned a lot of nice hug your husband's in your wives and your kids in.

Let me love them and enjoy your Thanksgiving and and then we are going to do it here, but we're gonna come out firing on Friday and thereafter.

Thanks, everybody.

Take care everyone.

Thank you. This concludes today's conference and you may disconnect. Your lines at this time. Thank you for your participation.

Thanks, a lot.