Q4 2023 SKYX Platforms Corp Earnings Call
Good day and welcome to the Sky X platforms Corp, fourth quarter 2023, Investor update call.
Today's webinar is being recorded.
None: Before we begin the formal presentation I'd like to remind everyone that statements made on the call and webcast, including those regarding future financial results and industry prospects are forward looking and maybe subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the call.
None: Please refer to the company's SEC filings for a list of associated risks.
None: And we would also refer you to the company's website for more supporting industry information.
None: At this time I would like to turn the webinar over to Rani Cohen.
Rani Cohen: Executive Chairman of Sky X platforms Corp.
Sir Please go ahead.
Rani Cohen: Good afternoon, everyone. Thank you for joining us I'm happy to be with you here.
Rani Cohen: To share with you some highlights from.
None: Last year last quarter.
None: And I will now have our president Steve.
Steve Schmidt: Steve Schmidt.
Steve Schmidt: Hum.
Steve Schmidt: Head.
Steve Schmidt: And.
Steve Schmidt: Start with our session.
Steve Schmidt: Yeah Ronny. Thank you very much you know I joined Sky because I believed in the management the products the strategy and the huge opportunities that were before this company.
And I'm really excited today to be able to share with you the significant progress and momentum that we are achieving it really is truly exciting.
Like any company it really starts with our people.
Steve Schmidt: And we continue to do an exceptional job on bringing leaders to this organization and you can see by this chart by Bob Nardelli, former CEO of home depot in Chrysler in J D power systems L. Weiss, a former president of the Disney World, why parks and hotels and resorts.
Steve Schmidt: Governor Tom Ridge, not head of Homeland security to time Governor of Pennsylvania, He's on our board.
Mark Hurley, our really the National Electric co head is that up and joined US because of his belief in where we're going and what this company has to offer Erik Jacobsen as a former president and CEO of the American lighting Association. He's joined US after retiring after a 30 year career.
Steve Schmidt: But he is going to stop at a really headed up Microsoft Global AI business leader and we're excited to have her joining us alternate housekeep tiers are Sky insurance Advisory Board and Atlanta, Shaner adds up our hotel Advisory board around order of over 60 Marriott Hotel, So a very <unk>.
Steve Schmidt: Impressive group of leaders that continue to help and build our brand.
Steve Schmidt: You know our mission we talk about this is really the big buildings and home safe and smart.
Steve Schmidt: It's really the new standard, but the key part of this charity as you think about any company that has based itself on saving lives saving cost saving time and simplicity and many companies have been successful simply by one of these areas, but we at Sky.
Steve Schmidt: All four of these areas behind our products and technology and its really the excitement that we feel.
Steve Schmidt: We strongly believe that based on these aspects, we really are positioned to revolutionize the lighting and smart home industries and it could become a safety standard in homes and buildings in the U S and globally.
Steve Schmidt: We now have over 77 U S and global patents and patents pending with applications with twenty-three you issued patents in the U S and globally.
Our addressable market is huge over $500 billion expanding it really spanning almost every room that you can think about and our expected revenue streams include product sales royalty and licensing subscription minor green and the sale of global country rights.
Steve Schmidt: So when you think about sky acts and really technologies and how we're advancing key sectors.
Steve Schmidt: It really is very special and the electrical safety regulators, where they're going to really advance home and building safety insurance companies huge dollar savings for your insurance companies because of the safety aspect around our products. The lighting industries will see caution significantly increased sales and profit the smart home industry will see a significant.
Steve Schmidt: Cost and increase adoption and then electrical outlet box manufacturers, they will significantly increase their sales and profits on.
Steve Schmidt: On the right here building safety regulators, they're gonna advanced both home and building safety.
Steve Schmidt: And then when you think about builders apartment buildings hotels, the cruise industry's in every single case, there's significant cost and time savings, which are going to enhance safety.
None: So we're pleased to announce as we talk about our revenue and the momentum we started to build here and we really think about the fourth quarter of 2023.
None: Generally in at a record $58 $8 million in revenue in 2023.
None: Including ecommerce sales smart home products advanced plug and play products as compared to $32 million in 2022.
None: We generated a record $22 million of revenue in the fourth quarter of 2023.
We reported $22 $4 million in cash cash equivalents restricted cash available cash and investments available for sale as of December 31, 2023, as compared to $16 8 million as of December 31, 2022.
None: And we anticipate that the company will become cash flow positive during 2025.
None: And the reason for that optimism is really the incredible progress.
We're making and the momentum we have in so many areas and are now one of a kind of talk to you about that progress and momentum that we have.
None: So think about this we started sales to builders and pro segments and opened over 100 builder and pro accounts drink builder show in Las Vegas.
None: During 2020 free we've already shipped its products with thousands of U S. Homes products include both advanced and smart home plug and play products. Many orders to home have included multiple units.
We expect our products to be in tens of thousands of homes. During this calendar year.
None: We began selling in the Canadian marketplace.
None: We continue to enhance market penetration of our advanced and smart platform technology products. The most retail and pro segments through our e-commerce platform of over 60 websites for lighting and home decor.
None: We entered into an agreement to supply approximately 1000 homes with its advanced Smart home platform technologies and are expected to deliver approximately 30000 units representing a variety of our advanced and smart platform technology products to the developers upcoming projects.
None: And then last the company won over seven awards at CES, the consumer Electronics show, including our most recently two awards for our all in one third generation and Sky platforms.
None: Continuing with the progress and these really are significant.
None: We have just signed a five year global licensing partnership agreement with GE.
None: <unk> Sky UX patented advanced and smart home platform technology, including our ceiling outlet receptacles later products as well as our all in one smart home platform technology.
None: We've announced the collaboration with World, leading lighting company titular which will include Sky advanced Smart and standard products for online retail and professional channels.
None: We've announced the collaboration with U S, leading manufacturer wise L. A U S leading lighting manufacturer for nearly 100 years, which will include Sky actually advanced smart and standard products for online retail and professional channels.
None: We also announced a collaboration with the U S. A leading elegant lighting company Golden lighting, which will include Sky advanced Smart and standard products for online retail and professional channels.
None: And the companies in the process of working on significant additional collaborations with leading U S companies and expect to announce them in the upcoming months.
None: The last area of progress is really around the whole area of safety mandated filings.
None: We have filed for a mandatory safety standardization with a national electrical wood, we're stealing outlet receptacles for ceilings in homes and buildings with Sky Exco team, which is led by Mark early former head of the National Electric code and Erik Jacobsen, the former President and CEO of the American Lighting Association.
Mr earlier, Mr. Jacobson, obviously were instrumental in numerous cold and safety changes in both electrical and lighting industries.
We believe that after 12 years of standardization process, including its product specifications approval, which was voted on or by ANSI and NEVA, which is the National Association of Standard Institute and the National Electric Manufacturing Association, we have met the necessary safety conditions will be.
None: Coming of ceilings safety standardization requirement for homes and buildings.
None: In the past 12 years, the company's products, we're already voted into 10 segments.
None: International Codebook.
None: But you'd have to say that obviously voting decisions are at the discretion of the NAC voting members.
None: So hopefully that gives you a good sense and a good feeling for the significant momentum that we have going on and the progress we're making I now want to turn the call over to Olin Sokolow Arco's CEO to talk you through more of our financials and our key land right.
Olin Sokolow: Great. Thank you very much Steve I appreciate it.
Olin Sokolow: I'd like to discuss first the our 2023 financial results.
Olin Sokolow: Our revenue in 2023 increased to a record $58 8 million, which.
Olin Sokolow: Which included a record fourth quarter sales of $22 2 million, which were which we realize these include a standard before e-commerce sales smart home products.
Olin Sokolow: Damn plug and play products.
Olin Sokolow: Our gross profit and 2023 increased to $18 million or 31% of revenue.
Olin Sokolow: Gross profit was positively impacted by the gross profit from the acquisition of the Bellamy E Commerce platform, which contains over 60 websites for lighting and home decor.
Olin Sokolow: Our cash and cash equivalents restricted cash and available cash and investments available for sale amounted to $22 4 million as of December 31.
Olin Sokolow: 2023, as compared to $16 8 million as of the end of 'twenty to 'twenty two.
Cash used in our operating activities for 'twenty to 'twenty three amounted to $12 9 million as compared to $13 8 million in 'twenty to 'twenty two.
Olin Sokolow: Our sales and marketing expenses amounted to $20 1 million in 'twenty to 'twenty three compared to 18 8 million in 'twenty to 'twenty two.
Olin Sokolow: Our net cash loss before interest taxes, depreciation and amortization as adjusted for share based payments.
Olin Sokolow: We defined as adjusted EBITDA, which is a non-GAAP measure amounted to $15 2 million.
Olin Sokolow: In addition to noncash basis loss of $24 5 million. So we totaled $39 7 million net loss of approximately four five or 45 cents per share in 2023 as compared to an EBITDA loss of $11 6 million. In addition to a noncash base.
Olin Sokolow: This was lost.
Olin Sokolow: $1 4 million, which amounted to a net loss of $27 million or a.
Olin Sokolow: Loss of 40 cents per share in 'twenty to 'twenty two.
Olin Sokolow: The management of the company wanted.
I wanted to.
Scott.
Olin Sokolow: Year ended.
Olin Sokolow: 2023 was highlighted by our first full two quarters.
Olin Sokolow: <unk> revenues, including sales of our <unk>.
Olin Sokolow: Sales and rollout of our advanced ceiling smart and standard plug and play platform products have many leading U S and Canadian websites.
Olin Sokolow: We believe we have accelerated our cadence of sales with robust gross profit.
Olin Sokolow: Notably managing the cash burn of Sky UX.
Olin Sokolow: Our e-commerce platform with over 60 websites is expected to provide additional cash flow to the company.
Olin Sokolow: When combined with our existing cash we anticipate will be sufficient for 18 months of operations management anticipates the company will be cash flow positive during 2025.
Olin Sokolow: We are encouraged with our path to the builder commercial segments large online and brick and mortar partners as well as to realizing incremental licensing subscription and data aggregation revenue that we believe will assist and paving the way for our standardization efforts.
Olin Sokolow: Additionally, our e-commerce website platform enhances the acceleration of marketing distribution channels collaborations and sales of both professional and retail segments.
Olin Sokolow: Our 16 websites that include the company's advanced ceiling smart and standard play bug them products are are disclosed on our website.
Olin Sokolow: Those who are interested in these websites include banner's videos and educational materials regarding that simplicity cost savings time savings and life saving aspects of the company's patented technology.
Olin Sokolow: And if I may I'd like to turn it over to Mark Botswana.
Mark Botswana: And let's discuss some financial data.
Mark Botswana: Thank you and good evening everybody.
Mark Botswana: So basically we're just going to recap some of the financial information and compare them to.
Mark Botswana: What we had for the year and as of 12 31 'twenty to 'twenty two.
Mark Botswana: So agenda cash position was 22.4 million as of December 31st 2023.
Mark Botswana: Yes, compared to $16 8 million as of 12 31 'twenty to 'twenty two.
Mark Botswana: 15 million I'll say, there's some marketable securities.
Mark Botswana: Accounts receivable amounted to three.
Mark Botswana: 3.4 million as of 12 31, 'twenty to 'twenty three that's approximately 14 days outstanding So we collect fairly quickly.
Mark Botswana: Inventory increased.
Mark Botswana: So the $3 4 million from $1 9 million last year.
Mark Botswana: Working capital is at $3 1 million as of 12 31, 'twenty to 'twenty three the stockholders equity.
Mark Botswana: They went from $7 9 million last year to $16 6 million.
Mark Botswana: And as Len, you mentioned, a little bit earlier, so that our revenues.
Mark Botswana: Was that $58 8 million compared to you know the revenues.
Mark Botswana: Revenues in 'twenty to 'twenty, two we're not meaningful the gross profit is at 18 million.
Mark Botswana: Our operating expenses increased to 35 million compares to $12 million.
Mark Botswana: There's a few components to that but obviously you know as we absorb the operations you know the company we acquired Delorme.
Mark Botswana: There's some stock based compensation decreased there's approximately $6 million increased noncash expenses.
Mark Botswana: The net loss is at $39 8 million compared to 27.
Mark Botswana: The EBIT days, that's $15.2 million loss compared to $11 6 million.
Mark Botswana: The net cash used in operating activity for 2020 three was $13 million and that compares to 2020 to $13 8 million.
Mark Botswana: The net cash provided by investing activities.
Mark Botswana: With $3 2 million in 'twenty to 'twenty three and it was you know we used 8 million. It's when it's when you do it but it was primarily as part of the acquisition of the portfolio of our marketable securities.
The net cash provided by financing activities was up $22 7 million dollar in 23 industries compared to 29 million.
Steve Schmidt: And now Steve.
Steve Schmidt: Okay.
Steve Schmidt: Ryan Let's go back to writing so let's go back to Rodney for Us.
Rodney: Got it.
Rodney: Thank you Steve.
None: Steve Thank you Lenny and thank you Mark.
We'll show you a few slides that better explain our activity in the market and why we add this opportunity and why we succeeded to lock some collaborations here, including GE and world, leading lighting companies essentially at Quesnel and others its really as.
None: You can see in this slide is a razor blade model our mission is to enhance our ceiling receptacle outlet to as many homes as we can we are doing that now we started doing it and we are.
Enhancing the market penetration.
None: Loading more and more receptacles into homes, while it will create for us a recurring revenues opportunities into changing fixtures are as.
None: As well as down the road in the future with our smart products data aggregation monitoring and subscription that will be key for us.
None: We also enable builders and homeowners to.
None: Make a smart home instantly once you put a receptor Goldman to home. If you have 20 receptacles a 30 receptacles a 10 you just plug a few fixture in if it's smart ceiling fans. If it's smart lighting, if it's an all in one smart platform that we have here.
None: And that once you plug it in connected to the IC, you really have a smart home and excluding wall sconces and resist lights as Steve mentioned earlier.
None: We're proud to say that we won a total of seven seven C. S awards in the past year or so including two ones for it all in one smart platform.
And that was something that would really encourage us and this is the all in one small last one are you.
None: Plugging in within seconds through the ceiling and you can still installed light fixtures a sensor, but you have all the sensors, including smoke detector heal detectors, Wifi extenders intercom them to them.
None: And emergency calls emergency Infinera emergency light and many many features that Wifi extenders and many others into homes are where you have the packaging we didn't start sales, but we anticipate to start sales with this product and there's a lot of our demand and our expectations of that product to the game.
None: <unk> product that can enable that home could become smart instantly with.
None: We're just plugging it within seconds to debt ceiling, and we're very happy and encouraged that the consumer electronics show CES recognize their.
None: That capability unique capability, we have here, what we said earlier with enhancing the market penetration with the ceiling outlet here receptacle and as you can see here, we have already one packs and for tax and now we're starting to introduce the eight packs into 24 packs based on builders recommendations.
None: And we can sell them. So the way it will go and build they will buy them during rough construct Daniel when you renovate you put them on the feeling when you read you a few months after you wont buy the feeling and plug and play and as we mentioned, we'll have a smart home two.
None: Two additional products that are doing very well for us is that plug and play.
None: <unk> Smart excuse me advance plug and play for light fixtures and the smart advance plug and play that makes every picture becomes smart and then it gives us all the capabilities of smart home that you want and you can use dear those capabilities as we mention.
None: In the past. They include many features that including energy saving mode. Then you can use it to Suri Alexa Google Samsung among others. So that's happening and we're selling them on a daily base basis in here another product, they're very proud to announce and we will launch.
None: This year is a plug and play recessed light, we have like seven inch and they're right here for you.
None: And that has a tremendous opportunity as the numbers are recessed lights are on.
None: Very very high as I'm sure all of you know so I think for now I think we're in good shape year are showing you. The main feature is that is that we mentioned on the new stuff as everyone knows we mentioned, we filed the demanding application and Arco team and management team that really believes.
That we are are really are in a good shape with this we can promise times, we don't know how long things like this happen. We don't have the clock, but we really feel that we are delivered 60 base, what we need to and the lifesaving aspects are huge and as we mentioned in the past many.
None: People risk their lives just as always stall the lake picture when there is a plug and play solution that can really prevent you're touching wires are the last time something like this happening is the G. S. Guy here in the center that isn't every bathroom and then many Kid change then we followed that path.
None: With having our 10 segments at the National electrical codes and we really are expect based on the safety aspects of the athletes will over 12 years.
None: That that we were getting a better chance and getting closer but again. This is not up to us. It's the regulators voting and we don't have a timetable for this as you all know a we signed a or Steve mentioned earlier, we signed a five year agreement with <unk> in December of 'twenty.
None: 23.
None: Yeah.
Quite a data proof of G that that started with the Edison base here with the wires that people installed light bulb for many years.
With wires until the Edison base came that's how he started became a global standard.
None: Many are they joined us, including G and others. We believe that we have the chance to become the U S. And then hopefully one day a global standard to have every ceiling have you know and outlet there, but the outlet. The platform here really enables you to create a smart platform and opened a whole new.
None: More than the ceiling as we showed earlier with this slide it's really opening a whole new world than the ceiling, we sold Christmas lights during Christmas and we expect to sell more holiday lights depends on holidays that can be Halloween it behind that that can be valentine's and can be for kids and for sports teams than in many other.
None: Things that we're looking at too and I'm really that's where we are today and we would like to thank everyone for participating and if there's questions. We will try to answer thank you very much.
None: Thank you and at this time well conduct a question and answer session. If you'd like to ask a question press star one on your telephone keypad, a confirmation tone will indicate that your line is in the question queue. You May Press Star two if you would like to remove yourself from the queue for participants using speaker equipment and may be necessary to pick up your handset before pressing.
The Star Keys once again to ask a question press star one on your telephone keypad.
None: Our first question comes from Michael Legg with Benchmark Company. Please state your question.
Michael Legg: Thanks, Congrats on all the success to date.
Wanted to kind of dig a little deeper on the breakeven level for calendar 'twenty fives and understand what that means if you can give us revenue expectations alongside that.
So it will be 10000 homes this year.
Can we put some revenue perspective around any of that.
Michael Legg: We were careful to announced revenues and but we did say that we believe we already and thousands of homes and we believe that this year, we're gonna be intensive thousands of homes. They're not 10000 are we believe we're gonna be intensive thousands of homes and it dipped.
Michael Legg: On what features they buy they can buy a chandelier or they can buy a smaller fixture and it really depends on what pictures and how much smart is this but b, we were happy with our growth and keep enhancing market penetration, but we did not provide yet guidance on exact revenues, our president Steve Schmidt mentioned earlier that management.
Michael Legg: Leave that that we can be a cash flow free during sometimes doing 2025, but that we're not yet announcing a as we have the growth that we're trying to accommodate here, we did not announce any numbers, yet and what does it look like.
None: Okay I just I just assume that if you had a breakeven number we could come within the range, but okay. So let's talk about the 18 months of cash on the balance sheet.
None: Looking at the balance sheet, there's a lot of short term liabilities I think 24 million.
None: Like over 12 million and accounts payable can we just first talk about those current liabilities and what how that cash is getting used for that.
None: And never been before.
None: Question I repeat the question our CFO.
CFO: Yeah, Okay. So.
None: You'll have the $18 8 million of cash on the balance sheet of which 16.8 is unrestricted.
None: And then you have.
CFO: A short time your current liabilities you have $12 4 million of accounts payable of $5 7 million of notes payable total current liabilities of 24 million. So I want to understand how we have 18 months of cash on the balance sheet. When we have those current liabilities.
None: Well so.
None: On the liability side.
None: It's really with the e-commerce.
None: So we get we get paid pretty quickly.
None: It definitely quickly.
None: And then are we you know we don't have to pay the third party manufacturers and adult 30 days 45 days later.
None: So that's <unk>.
None: Probably what you maybe referring to them.
None: Oh Wow.
None: Yeah.
Joe are you kidding.
Joe: Well I mean, I'm, just trying to stand at $12 4 million in accounts payable.
Joe: How that gets paid without dipping into cash so that where you say you have 18 months of cash we can talk offline. If you want but I was just kind of want to understand where we are cash wise in <unk>.
Joe: Liability wise.
Joe: I'm just trying to mesh with what was said.
None: Okay. We can talk offline if you want on that but second piece then is.
None: Cashes up this year, obviously you raised some capital can we talk with where the share count is I know, it's $93 5 million on.
None: Issued and outstanding but we're now in March three months later or how do you utilize your ATM and whereas cash today, where share count today.
None: So what we see for.
None: For now we're just limiting ourselves to publish the 12 31 is running through the numbers.
Okay.
None: Yes.
None: We did that was all good but what about filed with the 10-K out and ATM usage.
None: No there will be so we raised some money through the a T M.
None:
None: And.
None: Okay, that's how I feel about that.
None: Okay.
None: That's all I have thank you.
None: Okay. Thanks, I think we have all.
Paul Cooney: Paul Cooney.
Paul Cooney: Yeah. So the next question comes from Paul Cooney with the Benchmark company. Please state your question.
Paul Cooney: Hey, guys could you. Please just comment on your manufacturing capabilities.
Paul Cooney: How much could you bought in a factor.
None: Yeah, well you had the orders.
None: Yes, definitely we are we currently have a few agreements with GE approved.
None: Manufacturers and usually those factories are not usually they're always abide by the six sigma quality control for quality and highest level of quality with just six Sigma but also a key aspect is the quantities that those manufacturers. That's a key element of the geo proving the fat.
None: So we are in good shape for our growth and where enhancing our end and making you got more and more fixtures.
Compatible to our product as we go I believe that in June we have 100 hundreds of pictures capable with our technology compatible to our technology and October was a few thousand at the end of the year was.
None: Over 10000, I think now we are around 30 40 over 40000 pictures.
None: We have the capability to use our products and we keep on enhancing this expecting to get the hundreds of thousands of fixtures that are capable or AR technology. So we are at.
None: At that point in a good stage with with production and grew up for growth.
None: So who's manufacturing are the are you manufacturing them or are the.
None: Lighting companies manufacturing them, if we subcontract it to our electrical and and and Tech and Smart smart product factories that are approved by G. We subcontract. It it's not we're not a manufacturer we subcontract manufacturers.
None: With six Sigma and then approved by G E.
Quality control.
Wanted.
None: What's the what's the breakdown as far as what percentage of them are smart and what percentage of them are just the plug plug in.
None: Product.
The generation two smart we're selling currently I think $440 in a generation.
None: Advance generation, one plug and play with selling around and that's retail and wholesale the numbers are different but but that's public out there. So we're selling between 40 to $50. So obviously the breakdown of sales under standard.
None: Our higher than the smart we didn't publish those numbers, but we are very encouraged for the smart as it costs three times more than our advance plug and play product the smart plug and play product with all the features and there is a great demand for those products in the percentage of sales.
None: I really actually better than we expected when it comes to dividing between the advanced loves to the smart advanced Smart blood.
Okay.
None: And the.
None: As far as the standardization process I understand it's impossible to.
None: To tell about timing and things of that nature as far as when you would get potentially.
None: San Jose shouldn't go ahead, and maybe this is more of a more question.
None: What is the process that would speed that along and I know I understand you don't want to talk about exact timing on that because it's impossible, but is there a way that we can kind of anticipate.
None: I'm wondering what happened.
None: So.
None: Yeah, it's gonna be careful what we say, but we you know based on the safety aspects are code team strongly believes that we provided all of the answers to the safety that our product provides and the rule is if you really save lives.
None: As you know.
None: Waller should happen and we feel or our coating strongly feel that we're getting closer but really you know regulators are not fast and that's the bad news. The good news is that we're already over 12 years in the process and we accommodate that.
None: A N C a.
None: NEMA supports that was tremendous Ah.
None: In in getting to what we are would they also voted for a generic name like in the bathroom. The G. F. C. I stands for ground fault circuit interrupter are they dedicated the generic name for US isn't condition is that double U S. D. Our weight supports daily receptacles. So we really met very.
None: Rigorous conditions to be while we are and we'll let the regulators do their job and we're confident that we're in the right path.
None: And is there a <unk>.
Sounds like they.
None: Could possibly be.
None: And maybe this is why youre going to license them.
None: Is there any.
None: Concern about a monopolistic issues and things of that nature or is that why youre doing the licensing when everybody.
None: Yeah. It does it's a great question because part of it that we can't have the monopoly and that's why we signed that's one of the reasons G strongly believes that there's a potential for that becoming a standard here in the U S and if it happens here potentially can go to other places because it's safety.
None: So that's one of the main reasons, we signed the GE agreement, but he also believes that there is a potential for our smart platform generation two and three to be licensed in the market. So definitely that's one of the main reasons G wanted to sign that new five year agreements with that as we all believe there's a huge opportunity here and there.
None: Meantime, our Tam as Steve mentioned is around 500 billion and we are working on the past that if we can take our capture a fraction of 1% of our time, a very small fraction.
None: Stock perspective from a company perspective, it can be a great success and if we get this mandatory and many believe it's more when than if but we should see that that is going to be a game changer, obviously, but we are in a safe path and what we discuss today is as you see all this collaboration with many people that are here to support us with more leading lie.
None: <unk> companies and others and we're working as Steve mentioned and some other collaborations that we hope we will be able to share with the market if they happen.
None: And that's all that's the Holy Grail, that's that's what changes the game.
None: And that's the Holy Grail, but I think we're in very good position to keep on enhancing market penetration growing what we're doing now and and you know that there's two paths called mandatory yeah definitely but we're working on this path is the code team that's doing the code and as Steve Schmidt and all are.
None: Incident, then all of a CEO Lenny and all our sales team they pay more or a former head of sales capitular, that's a world leading company in many good people here around us and their end and our e-commerce team doing a tremendous job. So we have a path.
None: Its growing slowly, but surely and I think it's a bit like it's surely but its I think happening a bit faster now and we wanted to to happen much faster than it is in working on this so I think we're in a good place now we started delivering to builders and we registered Steve mentioned over 100, new builders.
None: Opened accounts with them and you know as they are going to start construction were they started ordering already and we expect and hope that we will have more orders down the road.
None: Okay, Alright, very impressive thank you guys.
None: Thank you very much everyone and.
None: Looking forward.
None: So talking to you with more updates in the next quarter. Thank you very much everyone.
None: Thank you and with that we conclude today's conference call. All parties may disconnect have a good evening. Thank you.