Q3 2023 Ideanomics Inc Earnings Call

Operator: Greetings and welcome to you Ideanomics Third Quarter 2023 Earnings Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As reminder, this conference is being recorded. It is now my pleasure to introduce Tony Sklar, Senior Vice President of Investor Relations. Thank you, you may begin.

At this time all participants are in a listen only mode.

A question and answer session will follow the formal presentation.

If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.

As reminder, this conference is being recorded.

It is now my pleasure to introduce Tony Sklar, Senior Vice President of Investor Relations.

Thank you you may begin.

Tony Sklar: Thank you very much, Operator and welcome everyone to the Ideanomics Third Quarter Earnings Conference Call. Joining me today I'm pleased to have Mr. Alf Poor, Chief Executive Officer, Mr. Scott Morrison, Chief Financial Officer. The recording of today's call will be archived and available in our events and presentations section of our corporate website for a minimum of 30 days. During the call we will make forward looking statements, such as dialogue regarding our revenue expectations or forecasts for the remaining quarters and the full fiscal year of 2023 and 2024. These statements are based on our current expectations and information available as of today. And are subject to a variety of risks, uncertainties and assumptions. Actual results may vary.

Tony Sklar: Thank you very much, Operator and welcome everyone to the Ideanomics Third Quarter Earnings Conference Call. Joining me today I'm pleased to have Mr. Alf Poor, Chief Executive Officer, Mr. Scott Morrison, Chief Financial Officer. The recording of today's call will be archived and available in our events and presentations section of our corporate website for a minimum of 30 days. During the call we will make forward looking statements, such as dialogue regarding our revenue expectations or forecasts for the remaining quarters and the full fiscal year of 2023 and 2024. These statements are based on our current expectations and information available as of today. And are subject to a variety of risks, uncertainties and assumptions.

During the call we will make forward looking statements such as dialogue regarding our revenue expectations or forecasts for the remaining quarters and the full fiscal year of 2023 and 2024. These statements are based on our current expectations and information available as of today and are subject to a variety of risks uncertainties and assumptions actual results may vary.

Tony Sklar: Actual results may vary and as of today, are subject to a variety of uncertainties and assumptions. Actual results may differ materially as a result of various risk factors that had been described in our periodic filings with the SEC. As a result, we caution you against placing undue reliance on these forward looking statements. We assume no obligation to under - to update any forward looking statements as a result of new information or future events, except as required by law.

And as of today are subject to a variety of uncertainties and assumptions.

Actual results may differ materially as a result of various risks risk factors that had been described in our periodic filings with the SEC as a result, we caution you against placing undue reliance on these forward looking statements. We assume no obligation to under to update any forward looking statements as a result of new information or future events, except as required by law.

Tony Sklar: In addition, other risks are more fully described in our Ideanomics periodic filings with the U.S Securities Exchange Commission, which can be viewed at www.SEC.gov. Today, November 21st, 2023 the company filed with the SEC on Form 10-Q its results for Q3 2023, and the afterwards, issued a press release announcing those financial results. So, participants on this call who may not have already done so may wish to look at those documents as we provide a summary of the results on this call.

Those financial results. So participants on this call who may not have already done so may wish to look at those documents as we provide a summary of the results on this call.

Tony Sklar: The format of today's call will be as followed, with Mr. Alf Poor will begin our comments today and speak to the company's progress and strategic developments. Mr. Scott Morrison, our CFO will speak to the company's operating and financial results for third quarter 2023. And then finally, Mr Alf Poor will make management's closing remarks. I now hand the phone line over to Alf Poor, Ideanomics CEO. Thank you.

I now hand, the phone line over to Alf poor idea gnomic CEO. Thank you.

Alfred Poor: Thank you, Tony. And thank you to everyone joining our Q3 2023 Earnings Call today. As I've mentioned on previous earnings calls this year, we account in the midst of executing a series of divestitures with a strong push to complete them before the end of this year. This is a strategic move to streamline our operations. It will provide us with relief from the liabilities in most businesses and enable us to enter Q1 of next year as a leader, more focused Ideanomics. With the capital from these divestitures, we can begin addressing out of many liabilities from suppliers to partners, as well as investing to growing our business.

Thank you Tony and thank you to everyone joining our Q3 2023 earnings call today.

As I've mentioned on previous earnings calls this year, we account in the midst of executing a series of divestitures.

With a strong push to complete them before the end of this year.

As a strategic move to streamline our operations.

It will provide us with relief from the liabilities in most businesses and enable us to enter Q1 of next year as the leader more focused by the topics.

With the capital from these divestitures, we can't begin addressing Arab mining liabilities the suppliers the partners as well as the best and to growing our business.

Alfred Poor: As I've mentioned previously, our core concentration going forward will be on local of last mile delivery, as well as charging solutions. This realignment is crucial for positioning Ideanomics so that we may take advantage of the anticipated growth in a rapidly, evolving, EV market. In response to what our currently very difficult market conditions in the EV sector, we've undertaken a comprehensive reorganization. This has involved making some challenging decisions, but they are necessary steps in preparing Ideanomics for the changing landscape of the EV industry.

This realignment is crucial for positioning I did not mix. So that we may take advantage of the anticipated growth in a rapidly evolving market.

In response to what our current the very difficult market conditions in the evening sector, we've undertaken a comprehensive reorganization.

This has involved making some challenging decisions, but the unnecessary steps and preparing our genomics.

Thank you landscape of the industry.

Alfred Poor: We have had a great deal of turbulence in our sector with some company ceasing operations and others consolidating. Our proactive approach in navigating these tough conditions, particularly in cost management, [inaudible] safeguarding and enhancing shareholder value. Current market conditions have made it difficult for us to raise capital to invest in our businesses, which has resulted in reduced revenue for this quarter. However, under Robin's stewardship, our business leaders have been resourceful and have continued to make progress. And I'd like to share a few examples with you now.

With some company ceasing operations and others consolidating.

Our proactive approach to navigate in these tough conditions, particularly in cost management.

Safeguarding and enhancing shareholder value.

Current market conditions have made it difficult cross device capital to invest in our businesses.

Which has resulted in reduced revenue for this quarter. However, the robin stewardship business leaders have been resourceful and have continued to make progress I'd like to share a few examples with SAP.

Alfred Poor: Energica continues to expand its dealer network has been selected by more and more governments to provide electric fleets motorcycles. This quarter Energica's bikes was selected as the electric motorcycle provider for a number of law enforcement division's in France and by the [inaudible] police service. Moving onto Wave, on previous earnings calls, Rob and I spoke of pilot projects Wave's secured with large logistics fleets. The team has made great progress on these projects. In collaboration with Dana, in Pembroke the Wave team are protected and OEM approved installation of wireless charging onto a medium judy battery electric truck, testing by our mutual customer.

And by the pop idols police of it.

Moving onto away on previous earnings calls walking not spoken to pilot projects wipes secured with large logistics fleets.

The team has made great progress on these projects.

Collaboration with Dana Pembroke.

<unk> team are protected and OEM approved installation of wireless charging onto a medium Judy battery electric truck testing by our mutual customer.

Alfred Poor: As far as we know, this is the first in the industry. Our customers currently putting both of wireless charging installation and the kenworth trucks that charges through the paces. And we hope to be able to bring you some compelling PR and media assets with this project in the near future as the project expands and matures. The Wave installation is underpinned by the telematics empty cloud platform that the Ideanomics' digital team has developed in house. The Wave team and their customers can use the platform to manage their vehicles and charging asset in a fully integrated manner.

Our customers currently putting both of wireless charging installation and the kenworth trucks the charges through the paces.

And we hope to be able to bring you some compelling PR and media assets with this project in the near future.

<unk> expands and matures.

The wife installation is underpinned by the telematics and empty cloud platform, but the other numbers digital team has developed in house.

The way that customers can use the platform to manage their vehicles charging asset in a fully integrated manner.

Alfred Poor: We built the platform for easy integration into our customers' own systems. While the third quarter was a challenging quarter, within what has been a very challenging year, I'm proud of the work our teams are doing to keep things moving forward inspite of the difficulties we faced. We are focusing on reducing our cost base, while simultaneously generating capital from our divestitures. Our objective is to make that [inaudible] numbers more dynamic, more agile and positioned for profitable growth while growth at any cost. Despite the tough market conditions that have coincided with a critical phase in our journey.

Alfred Poor: We built the platform for easy integration into our customers' own systems. While the third quarter was a challenging quarter, within what has been a very challenging year, I'm proud of the work our teams are doing to keep things moving forward inspite of the difficulties we faced. We are focusing on reducing our cost base, while simultaneously generating capital from our divestitures. Our objective is to make that [inaudible] numbers more dynamic, more agile and positioned for profitable growth while growth at any cost.

While the third quarter was a challenging quarter within what has been a very challenging year.

I'm proud of the work our teams are doing to keep things moving forward.

The difficulties we faced.

We are focusing on reducing our cost base, while simultaneously generating capital from asset divestitures.

Our objective is to make that.

More dynamic more agile and positioned for profitable growth while growth at any cost.

Alfred Poor: Despite the tough market conditions that have coincided with a critical phase in our journey, we are focused on laying the groundwork for future success. Lastly, we remain open and vigilant for opportunities for consolidation in adjacent sectors that promise to differentiate our offerings and accelerate that growth. Our goal is to seize on these opportunities judiciously, ensuring that they align with our core focus on long term vision, and to only act if that will enhance shareholder value. I will now hand you over to Scott Morrison, who will take you through our financial results for the quarter before I provide my closing remarks on our outlook for 2024.

Despite the tough market conditions that have coincided with a critical phase in our journey.

We are focused on laying the groundwork for future success.

Lastly, we remain open and vigilant for opportunities for consolidation in adjacent sectors, the promise to differentiate our offerings and accelerate that growth.

Our goal is to seize on these opportunities judiciously, ensuring that they align with our core focus on long term vision and the only act that will enhance shareholder value.

I will now hand, you over to Scott Morrison, who will take you through our financial results for the quarter before I provide my closing remarks on our outlook for 2024.

Scott Morrison: Thank you, Alf, and thank you to everyone listening to this call. Revenue for continuing operations in the quarter, excluding a change in accounting estimate were US$3.5 million, 57% lower than the same time last year. Revenue for continuing operations for the first nine months of 2023, excluding a change in accounting estimate were US$14.5 million, 24% lower than the same period last year. The change in accounting estimate is an adjustment to prior revenue recognized in the Solectrac business unit.

Revenue for continuing operations in the quarter, excluding a change in accounting estimate for $3 $5 million, 57% lower than the same time last year.

Revenue for continuing operations for the first nine months of 2023, excluding a change in accounting yesterday.

With $14 $5 million, 24% lower than the same period last year.

The change in accounting estimate is an adjustment to prior revenue recognized in the electric business unit.

Scott Morrison: Because there was no history of customer return rates when this dealer program began in 2022, Solectrac did not have passed data on which to base its reserve for returns accounting for the history returned that has now been established. It became apparent that a reserve should be recorded on the balance sheet. This resulted in a change of accounting estimate to the revenue recognized to date. This debit itself US$2.8 million and credited cost of goods sold one US$1.9 million, creating a liability and an asset on the balance sheet. Each quarter, the reserve amounts will be assessed in adjusted according to historical run rates, like dealer inventory and current market conditions.

Electric did not have passed data on which to base. Its reserve for returns accounting for the history returned that has now been established.

It became apparent that a reserve should be recorded on the balance sheet.

This resulted in a change of accounting estimate to the revenue recognized to date.

This debit itself $2.8 million and credited cost of goods sold one $9 million, creating a liability and an asset on the balance sheet each quarter. The reserve amounts will be assessed in adjusted according to historical run rates like dealer inventory and current market conditions.

Scott Morrison: The reduction in revenue for continuing operations this quarter was largely due to the capital constraints Alf mentioned previously. Our businesses continue to maintain and expand their sales pipelines, so we believe that demand remains very strong. But we have constrained - have been constrained in our ability to service that demand quickly due to limited capital availability. We hope that generating capital through asset divestiture and direct investment, our businesses will be better able to service the demand they've been experiencing. Third quarter gross profit from continuing operations, excluding the change in accounting estimate was a loss of US$0.5 million, representing a gross margin of negative 14,8%. This is an improvement of roughly US$0.1 million compared to a loss of US$0.6 million last year.

Our businesses continue to maintain and expand their sales pipelines. So we believe that demand remains very strong.

But we have constrained have been constrained in our ability to service that demand quickly due to limited capital availability, we hope that generating capital through asset divestiture and direct investment our businesses will be better able to service the demand they've been experiencing.

Third quarter gross profit from continuing operations, excluding the change in accounting estimate.

It was a loss of $5 million, representing a gross margin of negative 14, 8%. This is an improvement of roughly $1 million compared to a loss of <unk> $6 million last year.

Scott Morrison: The third quarter operating expenses from continuing operations, excluding impairments and an adjustment to contingent liabilities were US$16.9 million, a reduction of 46% from the US$31.4 million spent in the second quarter. Reducing costs and efficiently managing resources enables us to navigate the current challenges that Alf discussed, positioning us to use our capital more effectively to benefit Ideanomics and our shareholders. Now, back to Alf for closing remarks.

Our $16 $9 million, a reduction of 46% from the $31 $4 million spent in the second quarter.

Reducing costs and efficiently managing resources enables us to navigate the current challenges that alpha discussed positioning us to use our capital more effectively to benefit I Didnt omics and our shareholders now.

Now back to al for closing remarks.

Alfred Poor: Thank you, Scott. Having spoke about this year so far, I wanted to take a few moments to speak about the fourth quarter, our upcoming shareholder meeting and our prospects for 2024 and beyond. We are midway through Q4, and my primary focus for the remainder of the year is twofold. Firstly, divesting those assets we will let go, in order to ensure we are completely focused on our core business objectives; and secondly, growing the order book in our businesses and successfully delivering on those orders to help finalize the reshaping of the business for growth in 2024.

Kevin spoke about this year, so far I wanted to take a few moments to speak about the fourth quarter.

<unk> shareholder meeting and our prospects for 2024 and beyond.

We are midway through Q4, and my primary focus for the remainder of the year is twofold.

Firstly divesting those assets, we will let go in order to ensure we are completely focused on our core business objectives, and secondly, growing the order book in our businesses and successfully delivering on those orders to help finalize the reshaping of the business for growth in 2020 goal.

Alfred Poor: There are some important proposals in our upcoming shareholder vote that are critical we receive your support on. While we have a proposal for future financing, this is to provide us with the optionality needed an uncertain capital market. Our focus now is to demonstrate confidence to the market, such that we see positive gains in our share price. Our share price is beaten down and our enterprise significantly undervalued. This will be seen in the divestitures, which we anticipate realizing more capital than our current market cap.

And our upcoming shareholder vote that are critical we receive your support.

While we have a proposal for future financing. This just to provide us with the optionality needed an uncertain capital market.

Our focus now is to demonstrate confidence to the market.

We see positive gains in our share price our share price has beaten down and our enterprise significantly undervalued.

This will be seen in the divestitures, which we anticipate realizing more capital than our current market cap.

Alfred Poor: The intention there is to get proof points out into the market that will flip positively in our share price and talk to our investor base before future equity financings. The management team, including myself and our chairman, have suffered the same as all shareholders and that we've been in the in that, we have seen our holdings in Ideanomics eroded in value in 2022 and 2023. Going forward, we are going to focus on share price growth as a key driver in all of that decision making. 2022 and 2023 were difficult to survive. 2024 is the time to thrive.

The management team, including myself and our chairman suffer the same as all shareholders and that we've been in the in that we have seen our holdings in 19 omics eroded in value in 2022 and 2023.

Going forward, we are going to focus on share price growth is a key driver in all of that decision making.

2022, and 2023, but difficult to survive let.

<unk> thousand 24 is the time to thrive.

Alfred Poor: And I believe we have the technology, the products, the people, and most importantly, the customer base to come out of this with a company we can all be proud of. 2024 will see resets and executive compensation, which will include performance related bonuses and compensation that rewards share price quote. This includes my own compensation, which has been largely deferred since October of 2022. I haven't been comfortable receiving compensation while reducing employee head count and asking suppliers and partners to stretch their terms to help Ideannomics survive. Once the divestitures are complete, we expect to provide shareholders with a clearer picture of our revenues, our customers, our order book and our ability to execute.

2024, with the resets and executive compensation, which will include performance related bonuses and compensation that rewards share price quote.

This includes my own compensation, which has been largely deferred since October of 2022.

I haven't been comfortable receiving compensation, while reducing employee head count and asking suppliers and partners to stretch their terms to help out the gnomic survive.

Once the divestitures are complete we expect to provide shareholders with a clearer picture of that revenues are customers, our order book and our ability to execute.

Alfred Poor: While the divestitures will see revenues leaving the group, it will allow new and existing shareholders to benefit from a leaner, more focused company with a core focus to be not as fragmented as we have today. Going into 2024 we have outstanding people, products and technologies remaining in the court. Such that we can build a compelling business that is understood by our customers, shareholders and industry analysts alike. Our target market will be the large fleet buyers, who have been supportive of our products through the last couple of years of testing and evaluation.

Going into 2020 full we have outstanding people products and technologies were mining in the court.

We can build a compelling business that is understood by our customers shareholders and industry analysts alike.

Our target market will be the large fleet buyers, who have been supportive of our products through the last couple of years of testing and evaluation.

Alfred Poor: Those customers have the financial capacity to place large orders, which can enable us to predict everything from our costs, through to our revenues and profitability. Now that we have begun to penetrate the fleet operators with meaningful south activities, it's time for us to perform in all aspects of business. And we will focus on excellence in all we do, ranging from a presale activities through to a post out delivery, installation and maintenance programs. We've built an enviable technologies at Ideanomics that customers can rely on while they transition to zero emission transportation. I would like you all to come on the next stage of that journey with us, as we mature rep business lines and strive to profitably grow our business. That's all for my remarks today. Thank you all for tuning in. [inaudible] Ideanomics, have a happy Thanksgiving and thank you for your continued interest and support.

Now that we have begun to penetrate the fleet operators with meaningful south activities. These time for us to perform in all aspects of business.

And we will focus on excellence in all we do ranging from a presale activities through to a close out delivery installation and maintenance programs.

We've built an enviable technologies that are dynamics that customers can rely on while they transition to zero emission transportation.

I would like you all to come on the next stage of that journey with us as we mature rep business lines strive to profitably grow our business.

That's all for my remarks today. Thank you all for tuning in.

I did not mix have a happy Thanksgiving and thank you for <unk>.

<unk> interest and support.

Tony Sklar: Thank you very much, Alf Poor and to Scott Morrison, we do have time for two questions that were the top two questions sent into the IRA Ideanomics Inbox. I've minute posed these questions to the executives on the call. Question number one: Given the reverse split resulted in less than 15 million shares being outstanding, what is your expectation for share price appreciation on the float of that size?

The top two questions Duncan to the I R. At IGN Nymex Inbox I've minute pose these questions to the executives on the call.

Number one given the reverse split resulted in less than 15 million shares being outstanding what is your expectation for share price appreciation on the float of that size.

Scott Morrison: That's a very interesting question. Thank you, Tony. And thank you for whoever sent that in. While obviously the reverse split was necessary for us to remain on the NASDAQ, one of the few upsides of post and reverse split is when you do have a much smaller float, as we start to post and improved earnings, as we start to show these proof points and inflection points in our business, as we begin to deploy with our clients. The opportunity for customers to buy in to our stock, and shareholders to buy into our stock with such a small float means that there will be - it's more advantageous for share price appreciation, the small and the floating. There were less shares available in the market and they will have to compete harder than pressed to buy those shares. So, typically when you have a smaller float that is one of the upside advantages.

Alfred Poor: That's a very interesting question. Thank you, Tony. And thank you for whoever sent that in. While obviously the reverse split was necessary for us to remain on the NASDAQ, one of the few upsides of post and reverse split is when you do have a much smaller float, as we start to post and improved earnings, as we start to show these proof points and inflection points in our business, as we begin to deploy with our clients. The opportunity for customers to buy in to our stock, and shareholders to buy into our stock with such a small float means that there will be - it's more advantageous for share price appreciation, the small and the floating. There were less shares available in the market and they will have to compete harder than pressed to buy those shares.

While obviously the reverse split was necessary for us to remind on the NASDAQ.

One of the few upsides.

Post that reverse split is when you do have a much smaller float.

As we start to post.

Yeah.

Proved earnings as we start to show. These these proof points and inflection points in our business as we begin to deploy with our clients.

The opportunity to for customers to buy in to our stock and shareholders to buy into our stock.

With such a small float means that there will be.

It's more it's more advantageous for share price appreciation the small the floating there were less shares available in the market and they will have to compete hard are impressed to buy those shares. So typically when you have a smaller float that is one of the upside advantages.

Alfred Poor: So typically, when you have a smaller float that is one of the upside advantages. There is a great deal of upside advantages for us, with of course, but as we come out of that and the necessity to do it, I think the interesting thing is our business starts to evolve, results start to improve and our customer visibility and our pipeline visibility is available to the market. I think this is interesting, I think the dynamic will be, with so few shares, investors coming in will help push the share price up. That's typically what you would expect to see with a float of this size.

There is a great deal of upside events robust with of course, but as we come out of that.

And the necessity to do it I think the interesting thing is our business starts to evolve.

Results start to improve.

Customer visibility in our pipeline visibility that might available to the market. I think this is interesting I think the dynamic will be with so few shares investors coming in will help push the share price up that's typically what you would expect to see.

With the flow of this size.

Tony Sklar: Fantastic. Thank you. And the next question: Why do you feel your focus should be on the local last mile and local delivery?

Should be on the local last mile and local delivery.

Alfred Poor: That's a very good question as well. I've touched on this before. If you look at the different businesses and some of them that we are in process to divest, as we've said before, Energica, Solectrac are two good examples. They're focused on the bigger distributor module. Which means that they're selling out primarily to retail customers or retail type customers, in the case of Solectrac, they sell tractors to farms. We are just - we do do some direct sales through those companies, but we're relying on the data distributors for the bulk of the revenues and the bulk of the [inaudible] that remain.

You look at the different businesses and some of them that we are in process to divest as we've said before in Africa electric two good examples.

They're focused on the bigger distributor multiple.

Which means that they're setting out primarily to retail customers all retail type customers.

In the.

In the case of selected cell practice bombs.

We are just we do do some direct sales through those company.

But we're relying on the data distributors for the bulk of the revenues and the bulk of the south of the bank.

Alfred Poor: And so, we see those as opportunities that we're in the millions to the hundreds of millions of dollars over time. Whereas, the local last mile delivery and the charging of those fleets, we see that as the really big opportunity and that's why we're very focused on that. I think as the group starts to become smaller, and we do sell off some of those assets to give us the capital to get our expenses under control, our liabilities under control, and allow us to invest in those businesses again. I think the opportunity to go after is the big local last mile delivery, from the charging those vehicles. That's the billion dollar opportunity. That's what I think Ideanomics management and Ideanomics shareholders would expect us to do. And that's absolutely what we're doing.

Whereas the local last mile delivery and the charging of Buzz fleet.

We see that that's a really big opportunity and that's why we're very focused on that I think as the group starts to become smaller and we we do sell off some of those assets to give us the capital to to get our expenses under control our liabilities under control and allow us to invest in those businesses again.

I think the opportunity to go after is the big local last mile delivery from the charging months vehicles. That's the $1 billion opportunity. That's what I think by the <unk> management and hydrophobic shareholders would expect us to do and that's absolutely what we're doing.

Okay.

Tony Sklar: Thank you very much, Alf Poor and Scott Morrison. This is all the time we have for today and this concludes the Ideanomics Q3 2023 Investor Earnings Conference call. We encourage our community to continue to reach out to us and we can answer any additional questions that you may have individually. You can send your questions into us at IR@ideanomics.com

Tony Sklar: We would like to thank all of our listeners, shareholders, analysts and others who have taken the time to listen to this earnings call. We urge you refer to our latest SEC filings for any information that you need. This call will be available from our website in the Investors section and you will find the link there. You can be alerted to news, events and other information in a timely manner, we reckon that you're following us on social media channels, sign up for our newsletter and explore our website at www.ideanomics.com. Thank you, everyone for participating and listening on this call today.

I'd like to thank all of our listeners shareholders analysts and others, who have taken the time to listen to this earnings call. We urge you refer to our latest SEC filings for any information that you need this call will be available from our website in the investors section and you will find the link there can be alerted to news events and other information in a timely manner, we reckon.

Are you following us on social media channels sign up for our newsletter and explore our website at www Dot <unk> Dot com. Thank you everyone for participating and listening on this call today.

Operator: Ladies and gentlemen, this does conclude today's teleconference. Thank you for your participation. You may disconnect your lines at this time and have a wonderful day.

No.

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