Q3 2024 BioLargo Inc Earnings Call
[inaudible]
Speaker Change: Cary hunter will be one of the co-creators of the episode funded by the good medieval
Speaker Change: Welcome to the BioLargo 3rd Quarter 2024 Earnings Results Call. At this time, all participants are in a listen-only mode.
Speaker Change: Later, we will conduct a question and answer session. I would now like to turn the call over to your host Brian Loper. Please go ahead Brian
Brian Loper: Great, thank you operator. Good afternoon everyone and welcome to BioLargo's Q3 2024 earnings results conference call for the month's ended September 30th 2024. By now everyone should have had access to the earnings press release.
Brian Loper: which was issued earlier this week. This call is being webcast and available for replay.
Brian Loper: In our remarks today, we will include statements that are considered forward-looking within the meanings of securities laws, including forward-looking statements about future results of operations, business strategies and plans, our relationships with our customers, market and potential growth opportunities,
Brian Loper: In addition, management may make additional forward-looking statements in response to your question.
Brian Loper: Forward-looking statements are based on management's current knowledge and expectations as of today and are subject to certain risks and uncertainties and may cause the actual results differ materially from the forward-looking statements.
Brian Loper: A detailed discussion of such risks and uncertainties are contained in our most recent Form 10-Q, Form 10-K, and other reports filed at the SEC.
Brian Loper: The company undertakes no obligation to update any forward-looking statement. And with that, I now hand the call over to BioLargo's Chief Executive Officer, Dennis Calvert.
Dennis Calvert: Hey Brian, thank you very much and thank you everyone for joining us and as always we've got a lot of information to share so we're going to plow through it. At BioLargo we make life better focused on sustainable innovation, right? We have an innovation engine for a better tomorrow.
Again, I'm very thankful for you to be here.
Dennis Calvert: Brian mentioned the forward-looking statements. Just to recast that, look for the Qs and the Ks.
Dennis Calvert: for the most current information, including all the risk factors. Very important. We're overcoming risk every day.
Speaker Change: Okay, who are we? Innovators and scientists, entrepreneurs, passionate about sustainability and human health, driven by purpose, make life better.
Speaker Change: Best-in-class solutions can't emphasize enough, remember we focus on innovation that we believe is a cornerstone for transformative change in the market, transformative change.
Speaker Change: If we didn't think it was number one, we wouldn't be doing it.
Speaker Change: And execution, of course, is critical and the right timing in the world, there's a lot of risk factors to overcome for that, but we do believe the cornerstone of innovation is really the centerpiece of the company's technology. Lots of engineering, and we focus on problems that don't have a good answer.
and that's our job.
Speaker Change: At the parent company, of course, we have engineering as a centerpiece, an R&D group out of Canada.
Corporate serves as direction, capital.
Speaker Change: to assist all these operating units in finding their way through the innovation, the invent,
Speaker Change: approve and adopt phase for commercialization. We've got four operating units, medical, focus on texture control, energy, cutting-edge battery technology,
Speaker Change: And yet there is so much more to come.
Speaker Change: As a result of our investments significant investments over an extended period of time, we've developed a multitude of portfolio assets technical assets, we would call them unmatched technologies they are unmatched.
Speaker Change: Very important.
Speaker Change: We are pursuing capital conserving strategy, we have extraordinarily high qualified people think our employee count somewhere around 35, something like that but really you know there's another 10 professionals who are fully engaged in a very material way with the execution of our business. So we've got some critical mass number of Phds engineers really world class.
Speaker Change: Stature.
Speaker Change: Really qualified people and then driven by impact when you're studying these portfolios.
Speaker Change: We believe that the underlying value that we intend to capture is represented in this graph right. So we often talk about the business strategy for the odor division odor and Boc control under O&M environmental.
You know we've been industrial we found a great partner breaking records growing a brand with a partnership through proof.
Speaker Change: And we predicted that eventually as that company finds its traction which is doing it's gonna find an exit.
Speaker Change: Somewhere between 350 and $700 million.
Speaker Change: And we have negotiated at 20% participation that exit we fully expect that that will create an exit value somewhere in the $100 million range.
Speaker Change: The same applies to these other assets, but there are orders of magnitude larger.
And it's critical that we share that information. So you know why we're willing to invest and slug away to get these technologies through the innovation and adoption cycle and willing to it makes a significant commitment of time resource and passion to make sure. We're successful we think the next one to really go big is clearer.
Speaker Change: And we've talked quite a bit about that and we can talk some more about that on schedule right. Now we believe that will be in the red.
Speaker Change: Ready to go mode ready to go right first.
Speaker Change: First quarter.
Speaker Change: The knowledge that we faced every delay in the book.
Speaker Change: It's quite a daunting task to prepare to launch at the scale. We're preparing for it we've made substantial investments it's about $1 6 million equipment placements supported extraordinary investments of time and resource and third party validation to prepare those products to launch.
Speaker Change: And so we have a couple of partners there right. We have a partner on the manufacturing side, we have a partner on the distribution side, all working together to prepare a product to launch into the market of significant scale.
Speaker Change: We believe that the clearer assets.
Speaker Change: Represent an entire portfolio of assets. There is a court there is a core technology thats cornerstone, but literally.
Speaker Change: There's hundreds of products under the umbrella of clearer.
Speaker Change: Now what's unusual.
Speaker Change: As we may have a sustained that development cycle for so long is that significant investment.
Speaker Change: To prepare to launch.
Speaker Change: And a global scale.
Speaker Change: Global scale, alright lets define that a bit what that means is we're starting at the top with some of the top players in the market.
Speaker Change: And we think that it has the potential with the partnerships in place and scaled manufacturing.
Speaker Change: To disrupt the market.
Speaker Change: Not.
Speaker Change: We hope so we believe it will be clear we believe it will.
Speaker Change: It's a technical leap forward and the way, we can manage patient care for the best outcome and for infection control and for wound irrigation and it's just got a sweet spot in the marketplace because of its technical performance and its safety and the features that make it unique we believe as we've said at the top make it in.
Unmatched technology.
Speaker Change: So to be able to survive and thrive to get that technology seeded in the starting at this level. We believe we're going to enjoy a remarkable valuation marketable we've talked about before part of the strategy at <unk> is to invent proven partner once we prove there's a number of ways to monetize these assets, including potentially an IPO. We think clear is a perfect.
Speaker Change: Canada for that so we'd love to be in that spot. We think it's coming we can see it in the future and right now we've got our as we said we've got our.
We're at the grindstone grinding away to get that product positioned for a launch Q1, we're hoping to be in ready mode. When we say ready mode, we're talking about ready for skilled manufacturing.
Speaker Change: Large scale large volume to supply a distribution channel of significance.
Speaker Change: It's taken us quite a while and it's tested all our patients and it's really requires significant investment on our part, but we're very excited about the next step.
Speaker Change: The equipment group the equipment group, we talk about power equipment.
It's really water in Paphos. Okay. This is a market that's going to require a lot of work in infrastructure.
Speaker Change: A lot of work in infrastructure, it's slow it's methodical it's slow to adopt the beauty in our portfolio.
Speaker Change: Is that we have multiple.
Speaker Change: Assets to deploy into the market.
Speaker Change: Many different levels of market opportunity for example, their drinking water.
Speaker Change: Yes.
Speaker Change: Municipal wastewater, there's industrial wastewater groundwater.
Speaker Change: Fascinating firefighting foam.
Speaker Change: The recycling and reconditioning of stripping P fast off things like ion exchange.
Speaker Change: And on and on it goes there are so many opportunities and the beauty in our cases, we've got a our first commercial adoption.
<unk> just got permitting done just a little bit of gallon, we're waiting for the general contractor gave us. The go ahead on the building.
Speaker Change: Thanks, just to get that first install done.
Speaker Change: We have a pipeline of customers Thats remarkable and we've really established ourselves as a front runner for the emerging technology sector of that space emerging technology sector to our knowledge.
We're the only company as an alternative to ion exchange and carbon.
Speaker Change: That actually has a commercial account now I'm, hoping someone proves me wrong I'm anxious for that I keep saying it and no one comes forth with a competitive with its actually got a commercial account, but it's remarkable and the fact that we're here at this spot really puts us in the front runner position and.
Speaker Change: And then there's a battery technology.
Speaker Change: Let me describe the business plan for that and I think the business plan is Scott global scalability.
Speaker Change: Global scalability by leveraging core competency and working with partners to expand on the global scale.
Speaker Change: With rather meager performance some of them I'm going to highlight that we believe we can create evaluation and the two two and a half plus billion dollar range and we're going to talk about that in some detail as we get to that.
Speaker Change: Of course.
Speaker Change: The warning is not a forecast. This is the the prize that's before us with the technology as a cornerstone and execution risk proper financing all of those things apply. So we don't want to we don't want to short circuit that at all of course I.
Speaker Change: I am now going to ask Charlie to step up and talking about the financial performance on our technical basis for this most recent period year ending September 30, So Charlie you Ray.
Speaker Change: Okay.
Charlie Ray: Can everybody hear me.
Charlie Ray: Yes.
Yes.
Speaker Change: First Robyn. Thank you go ahead I got it I'm on and thank you all for every one.
Speaker Change: On the call listening to our third quarter report.
Speaker Change: So.
Speaker Change: On the slide with the revenue we did have another.
Speaker Change: Great quarter, and certainly fed into our nine months, we're at $14 million, which is a large increase over where we were last year.
And we believe at this run rate.
Speaker Change: Should definitely be $19 million or more on an annual basis.
Speaker Change: Next slide.
Speaker Change: Yes.
Speaker Change: I don't have enough.
Speaker Change: Slide <unk>.
Speaker Change: I've done yes.
I don't have it but let me let me separate okay.
Speaker Change: When we look at the <unk>.
Revenue and SG&A.
So.
Speaker Change: Let me start with the SG&A and the net loss and then we'll go back to the revenue.
Speaker Change: We've been maintaining our costs, even as we've been growing revenue, it's been a big important area for the company.
Speaker Change: Which is why our quarterly net loss was $1 1 million, which was an improvement from last year's third quarter and our nine months loss was $2 6 million, which is almost a million dollar improvement from last year's nine months again much of that is noncash.
Speaker Change: 337000 in the quarter and pretty close to $1 6 million.
Speaker Change: In the nine months.
So for our perspective, we are improving on the P&L and our.
Speaker Change: Operating cash situation.
Speaker Change: So for the revenue Youll notice that there is a decline quarter to quarter and that I want to tell everyone is an accounting convention.
Speaker Change: It is it has to do with.
Speaker Change: What we can recognize as revenue and what's in our working capital. If you look at the cash flow statement, you'll see that our.
Speaker Change: Accounts receivable has increased substantially and also our contract liabilities both of which are due to our increased business.
Speaker Change: And because of accounting conventions, and what we can recognize revenue they show up as assets on the balance sheet, which we fully expect that they will.
Speaker Change: Fall into.
Speaker Change: Revenue, so it's a timing thing.
Speaker Change: So going back to cash flow.
Speaker Change: We used $1 nine $1 million to $9 million in the quarter.
Speaker Change: In the nine months again the.
Speaker Change: The actual P&L aspect of that was an improvement from last year, and then again like I said, our working capital changed and.
Speaker Change: For a good thing but also.
Just because the way we have to account for it it turns out to be a negative on our statements, but the truth is the business continues to grow our revenues continue to grow and our loss continues to decline.
Speaker Change: From a cash perspective, we're sitting we're sitting on.
Speaker Change: $3 9 million. So we continue to be in a really good cash situation.
Speaker Change: The liabilities are certainly third party debt is very very small and in fact this declined again.
Speaker Change: In this quarter.
Speaker Change: And if you click to the next slide Dennis Youll see the result of all of that which is an increase in our stockholders equity.
Speaker Change: Very good.
Okay. So so in essence from a balance sheet perspective, we're in a really good position, we're increasing equity.
Speaker Change: Reducing debt.
Speaker Change: We have really good operations, we've increased revenue and reduce the loss.
So back to you.
Speaker Change: Yes, I'll just comment a little bit of color. We've also made some changes.
Speaker Change: Equipment.
Equipment, primarily related to clear and that has taken quite a bit of cash also by Largo.
Speaker Change: Invested alongside investors that have come into clearer so we actually.
Speaker Change: $1 million to work over the course of nine months into clearer.
Speaker Change: Changed for equity on the same price in terms of the investors, we funded that operation which has been great.
Speaker Change: And so we've been able to maintain our position at clear at about 52% as of end of the quarter and of course, we have the royalty income royalty revenue associated with our position as well.
Speaker Change: And we also believe by the way it is important to note that the investments.
Not all to the balance sheet, but the investments.
Speaker Change: Resource time money industry to prepare these products for preparation for the Q1.
Speaker Change: Is is pretty substantial I mean, there's a lot going on and so the good news is clear.
Speaker Change: Good cash position and we've been able to support that as well to make sure that we show up and are ready.
Speaker Change: Just as fast as we can possibly get ready to launch those products. Okay. Milled backdrop. The other is we continue to support R&D at the battery Tech.
Speaker Change: Technology company and that's important because we think it's so valuable.
Speaker Change: While we have and we will talk about some detail on that for the last nine months and some of the things that took longer than we expected, but we've been able to achieve success in terms of validating the technical claims associated with this phase of our development, which is supercritical into the next phase okay.
Speaker Change: Okay, we'll break down real quick a couple of.
Speaker Change: The big stories in the portfolio of course, so poof, how can you Miss poof. This.
Speaker Change: This is a petco in caps, just beautiful and it's a full it's a full circle story for the company all of those products.
Speaker Change: Created four or our partners at too.
We are the manufacturer of record.
Speaker Change: And we've outsourced some we supply some of the ingredients is theres a lot going on in the supply chain there, but it is just awesome and noticed theres the potty pads at the bottom and Thats, a relatively new entry into the marketplaces beautiful beautiful image.
Speaker Change: And again testimony to the science engineering.
Speaker Change: The ability to produce those products and then a little bit of entrepreneurship and putting the business deal together, that's working so well.
Speaker Change: Of course thankful for this great partner.
Speaker Change: So again major retail outlets. We estimate there are about 35000 retail outlets their stated goals to get to 80000 retail outlets. Okay. So theyre going to continue growing we've experienced in the past your largest quarters are Q3 Q4 Q1, that's been our history.
Speaker Change: And depending on whether you've got major retail outlets staging inventory, so theres always a little bit of lumpiness in that but the trend is all in the positive for those products and for us, which we're really excited about and so it's the who's who.
Speaker Change: I've seen a couple of competitors.
<unk> talking about their products and they referred to the Poof brand as the leading brand.
Speaker Change: I'd say, that's a big compliment doughnuts.
That's pretty cool.
Speaker Change: Okay.
Speaker Change: Remember the business deal right. The business is really important because this is a product. We invented these are products, we invented and we produce and so we make a markup on the cost of production the small market.
Speaker Change: And then we make a royalty on sales and we participate in 20% of the exits that goes back to that earlier slide where we're talking about.
Speaker Change: Things that are unseen the value that's unseen.
You just have to remind everybody you know when that brand sales being 20% of the exit 20% of the exit.
Speaker Change: And given its success is because we think it's going to be a big number. So we're pretty excited about it and that that underlying participation and was created.
Speaker Change: Permeates our business model throughout the company. So don't forget it people forget don't forget it's worth a lot of money.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Clearer.
Speaker Change: Oh historical performance there you've always stated that 80 thousands of goal I think the highlight here is to show the potty pads, the potty pads or a full circle story for the company and it goes way back to the origin story of the creation of our business.
Speaker Change: And the story really highlights the leverage that comes with brand recognition and scaled supply chain.
Speaker Change: As we get scaled supply chain the benefits of our journey accrue to the partnership that poof and allow us to enter the market with competitive pricing and margin as a major player on the first order I can't emphasize it enough and that's that's a great example, where that's come to bear.
Speaker Change: We talked about clear briefly and he's ready mode talks about ready mode already I don't need to detail it right now but being.
Speaker Change: Being ready to scale for manufacturing and an extraordinarily large scale, that's what we're talking about products ready to come off the line.
Speaker Change: We spent a lot of time and a lot of money working with the partners. The other thing I want to just emphasize it's a journey and which the three companies are working very closely together on a continual basis. This is not one where call me when youre done.
Speaker Change: This is the kind of relationship that requires three parties to journey together to get to the market, which we can produce and scaled manufacturing for a very significant distribution opportunity very excited and we think the valuation is going to be reflected as that asset goes to market.
Speaker Change: All acknowledged to that it's taken longer than we anticipated we've had all sorts of delays and the details mind I mean, the good news is we've just kicked off the list one after the other and continue to March towards that success.
Speaker Change: With Charlie targeting this earlier just before the call and we take two steps forward and we take a half step back then we take two steps forward, but we're definitely moving forward.
Speaker Change: And again were predicting success on this asset.
Also remind you.
Speaker Change: What's unseen is the idea that under the clearer umbrella there is the potential of let's call. It doesn't even 100 products.
Speaker Change: Literally it's a platform that just has legs and it goes on and on and on and so when you finally find your spot to enter that market in such a significant way. There's other opportunities think about it very much like the puppy potty pads.
Speaker Change: Alright until you had the position in the market and you have the distribution channel and the skilled manufacturing and the price purchasing power associated with supply chain. It's the same for many of those products until you get to that level those products don't make as much sense, but when you do have it you can push the button and go okay great.
Speaker Change: Youre talking about the battery technology real quick. So this article is very important if you haven't read it. Please do you can also reach out to us the economies throughout this about a month ago clean Energy's next trillion dollar business, it's talking about long duration energy storage.
Long duration energy storage.
You say long duration that basically means in layman's terms grid scale.
Speaker Change: So the primary uses offloading renewable energy and balancing the grid, you're talking about those trailers out in the field with hundreds of trailers that backup the grid, that's what we're talking about big business.
Speaker Change: Estimated to go somewhere between one and $3 trillion by 2040, that's almost 16 years and he is coming fast.
Speaker Change: And it's a market that people, who know about but we saw it.
Speaker Change: And by the way the inventors, who originally invented this taken over they saw it.
Speaker Change: Looked at this and said long duration storage as a piece of the future.
We believe it is too and so we've got an asset that we believe has a global opportunity of significance.
Speaker Change: Saying and I'll make sure I've got this right yeah, one of the markets right. So we talked about renewable energy offloading balancing the grid, perhaps EV charging stations, perhaps next to the home certainly next to buildings.
Speaker Change: <unk> backup and the like Okay.
Speaker Change: What's the problem with the current.
Speaker Change: Systems, well lithium is number one there are competitors by the way coming to market.
Speaker Change: In the long duration energy storage space.
Speaker Change: Test is famous for installing batteries in these in these battery packs ago adjacent to a building or two at home. We just think there is an inherent risk that is a problem and that's higher risk. There's also a number of other catastrophic issues to deal with like global supply chain and geopolitical things that we can go we can do a deep dive into politics, but the punch line to the story.
He is lithium 80 answer.
Speaker Change: That's the bottom line, it's not the answer and so there's a big push right Theres a big push.
Speaker Change: Okay. So the salinity battery everybody knows we acquired this technology and Thats important we acquired it.
We had to redo the work it took us we thought it would take when you originally scheduled to have that work completed by the end of December 2023, It took us till basically September.
Speaker Change: Nine or 10 months.
Speaker Change: But what we've successfully done is validated enough of the technologies to know that the technology is the real deal.
Speaker Change: So whats the whats the point, it's a safer.
Speaker Change: Sustainable durable and efficient battery.
Speaker Change: You can argue it's a better battery, it's simply a better battery.
Speaker Change: And that's an argument alright, and Thats argument, but I'm going to show you. A couple of stats are really important and it's extraordinarily well situated for long duration energy storage long duration I'm going to find that refer you real quick.
Speaker Change: People don't often know long duration means that when you pull the energy from the battery you can pull it for a very long time.
Speaker Change: Okay.
Got longevity, Okay ours is a 20 year battery, but it also can be pulled energy drawn for an extended period of time and the convention historically is about four hours and then theres, an eight hour and Theres, a 10 hour and we believe that this is really well situated for at least a 10 hour draw you can't use it.
Speaker Change: The reliable source at very high volume. These are the put ups by the market I will point out a couple of real quick he is talking about it all the time for a couple of reasons, yes as a competitor.
Speaker Change: Have a zinc bromide battery, we would argue that they can't match some of the very specific features of our design.
Speaker Change: But they've done a good job and it is a good battery so don't Miss it.
Speaker Change: Is.
Speaker Change: It has a much lower energy density for example, it's got self discharging issues. We think are our battery, especially the long duration is going to be a better fit.
Speaker Change: They've invested in 10 years and well over a quarter billion. Okay. Just so you get perspective and they are now commercial.
Speaker Change: But the thing that I think thats. The most important tell about that company is they've got reported over $13 billion and the pipeline of soft commitments basically commitments that as soon as you can make it I'll buy it and what that thesis supports.
Speaker Change: Example supports the thesis is the idea.
Speaker Change: If you have a better battery.
Speaker Change: He may be able to sell them before you ever make them.
Speaker Change: Okay, It's a pretty astounding thing okay and these other companies are big companies, who are using a lot of lithium the sodium ions coming on Thats. The article the economy. They will talk about that we're very different in the sodium ion as well, so I'm not going to compete with us either just to be clear.
Speaker Change: Okay, and the stats I'm not going to go through all the stats I just want to highlight a couple of things and that's the green on the right.
These are these are technical competitors. So demand there. So you might look at this 75 to 165.
Speaker Change: Energy density and were $5 52.
Speaker Change: Okay right. So that's what two six times something like that.
Speaker Change: Plus we're operating at an extraordinarily high voltage so the combination of high energy density and high voltage right gives us flexibility in the way the battery can perform in the field.
Speaker Change: Fits in our long duration model long duration storage model and then the other features right.
Speaker Change: No runaway fire risk its theres no self discharging.
Speaker Change: It's a 20 year battery, it's it's fully recyclable, it's got no rare earth elements no cobalt know nickel note no lithium right no geopolitical supply chain risk Earth abundant materials.
Speaker Change: We have a significant cost of goods advantage, especially when we get to scale and.
Speaker Change: And of course, that's the challenge right, how do you get to scale.
Speaker Change: Okay.
Speaker Change: We built a little factory and this is our pilot facility.
Speaker Change: We put about $1 2 million in this I don't know the exact number but I believe total invested capital right now in the battery project is about $2 million for us, Okay, and I say that because it's extraordinary what we've accomplished with so little.
Speaker Change: Alright, Xiaomi battery company that can show up with a working cell for $2 million.
Speaker Change: It's not there's none.
Speaker Change: Just be clear there's nothing there's none.
Speaker Change: The $25 million is more like it maybe 100.
Speaker Change: And so it doesn't mean, we're complete right. This is not scaled manufacturing. This is not automation. This is pilot production to prove the technology and positioning for the next phase we've done a remarkable job we had a little open house just a few weeks ago in September.
Speaker Change: And you can see the sell on the right in there with couple of our techs and their daughters. We had some dignitary Zen from overseas. We also had a.
Speaker Change: Future partner out of Arizona, and they brought in their technical team to really do a deep dive and look at where we're at in the status as we're negotiating to form partnerships to build factories in there in their territories. That's the idea of course anyway, it's great great moments and then of course, you put out a press release, but let me get to the meat on the bone for the business model.
Speaker Change: We came up with the basic strategy to conserve our capital and asked ourselves how can we deploy what we believe is a key.
Speaker Change: Cornerstone of innovation, that's unmatched in its technical claim.
Speaker Change: Okay, I mean, just cut to the chase.
Speaker Change: Not seen a battery that matches our claim.
Speaker Change: And we've got to prove it so we're not done proofing, but we know it to be true we know it to be true and.
Speaker Change: And we have enough evidence in hand to really stand out in front of the world and say, we've got a we've got a battery that that may be one of the best situated batteries for long duration storage that we've seen.
Speaker Change: Anywhere okay.
Speaker Change: So the idea right. So how do you do that well.
Speaker Change: Cell factories not batteries, that's the simple answer in other words.
Speaker Change: Give more than you take.
Speaker Change: Enable the technology to be put to work throughout the world and partnerships that have financial incentives and political incentives and geopolitical incentives to see these assets will be deployed in their country.
Speaker Change: That are willing to invest to see it happen and we just think about the United States alone. The department of energy has this.
Speaker Change: Of course, you got replace a reduction of tax credits everybody knows that that's energy credits for deployment in the field because you've also got.
Speaker Change: Land programs in loan guarantees and massive subsidies by the government to see this happen okay and.
Speaker Change: As part of our portfolio and batteries are not going to go away tomorrow, Youre only going to increase that most people believe even even as you transition to alternative sources like nuclear like nuclear and and you lean more heavily perhaps in the next administration on fossil fuels.
Speaker Change: <unk> demand is not going to go down.
Speaker Change: It's going to go up.
Speaker Change: And a better battery, it's well suited to balance the grid right as AI.
Speaker Change: And bitcoin hands.
Speaker Change: Our big data right continues to expand at the pace, it's expanding the grid cannot possibly keep up.
You just can't possibly keep up okay. So there's a neat right.
Speaker Change: So in the business model.
We looked at this with a hard look and we said what can we do well we model the factory will take about $140 million to build.
Speaker Change: Okay, and so representative factory.
Speaker Change: Financial model this year and be sure we made it clear.
About $140 million, we believe that that size factory, it's about 200000 square feet will generate about a half a billion dollars in top line revenue per year at today's prices.
Speaker Change: That's 1 billion, we estimate about a 16% plus level of profit.
Speaker Change: On a scale operation scaled operating running.
Speaker Change: And what we're looking for is participation as a minority equity holder and a royalty provider at 6%.
Speaker Change: So when we look at the business model, we say to ourselves okay.
Speaker Change: 6% on half of half a billion.
Factories, right finance with our partners other People's money.
Speaker Change: To put them in the business allow them to generate $500 million a year allowed into higher the 500 to 1000 people.
Speaker Change: Allow them to create the net exports for their country.
Speaker Change: Now then to develop grid scale micro grid development to balance the grid.
Speaker Change: Allow them to create economic development for their nation state.
Speaker Change: What do we want we want 6% royalty in the minority equity position and we will put them in the business.
Speaker Change: This is a business strategy that will allow us to scale at a global scale.
Speaker Change: As long as we prove it out and so you can imagine there's work for us to do we need to establish ourselves as a credible supplier at that level. So that the partners who have the desire to see this economic engine and this initiative for for for the future of energy to be deployed in their country. We believe we can get it done.
Speaker Change: That's the punch line, we believe we can get it done and of course, there's a lot of work to do once you have a contract we start making money we estimate on a million 140000, excuse me $140 million build.
Speaker Change: We'll generate about $60 million of revenue over the two and a half years before it goes live once it goes live where in a 6% royalty as a percentage of the profit that's a business model.
It's scalable on a global scale.
Speaker Change: Very excited about it hence when you go back to the slide where we talk about the potential value. It's real simple four factories will put us over 2 billion pushing up to $5 billion valuation.
Speaker Change: As the business.
Speaker Change: Pathos Paphos is very exciting I don't want to give kudos to the team that just made the remarkable advancements with a pipeline of business that significant.
Speaker Change: And our first commercial account and recognized expertise and as a result of all that work might think about it very much like what's happened at <unk>.
It clearer.
We've paid a dear price to be in the business as it is in early stage emerging technology against all the biggest players in the world with incumbent technology. That's had some adoption right some adoption, but we've got a better mousetrap with a higher value proposition.
Speaker Change: As a result of slugging away to prove out our claim and go and really doing all the work to go vertical.
Build machines put them in the field makes you are going to work, which is about to happen make sure we're clear.
Speaker Change: As a result of doing all of that our business and our technology becomes very attractive.
Speaker Change: Two very large companies, who have a strategic initiative to go after paphos.
Speaker Change: And so at this stage you know one of my soft predictions, it's not a hard but salt prediction is that this business is going to end up being partnered for the various vertical markets around the world.
Speaker Change: With some very large companies.
Speaker Change: And I think what that would do for us is accelerate adoption.
Speaker Change: Again preserve our dependence on big balance sheets, which is capital intensive for both manpower and equipment and allow us to leverage our way into significance through those partnerships and we believe that that's an inevitable and likely going to take the path.
Speaker Change: That's really going to watch that technology blossom.
Speaker Change: This is just to remind everybody that the industry that sold billions worth of sales is now going to call. It 17 trillion to clean up.
Speaker Change: The perspective is astonishing.
Speaker Change: The industry generated billions, it's going to take truly instant cleanup and this is not going to go anywhere is that going to go away.
Speaker Change: Anytime soon.
Speaker Change: When you're asking engine inlet.
Speaker Change:
Speaker Change: Water engineer for for the water table, how long it can take the water table to cleanup I said it took 50 years to get to 50 years to get out.
Speaker Change: Okay.
Speaker Change: <unk>.
Speaker Change: Thing that's unique about US is we can play in all these different markets.
Speaker Change: Okay. So this is really important and it always happens this way right, we saying, okay drinking water why drinking water.
I'm thinking why is the most difficult politically right, but drinking water.
Speaker Change: Is the slowest to adopt new technology.
Speaker Change: It's a it's made by political figures appointees public works.
Very very hesitant to adopt new technology, and it's slow and you got to really work hard to break through that barrier. The other markets will adopt faster, but the other markets haven't been haven't been mandated yet.
Speaker Change: Okay. So you can see the dilemma. The good news for US is that we can play in all those markets.
Speaker Change: So while that we slug away in the drinking water, we get adoption in the others. We believe much faster and that's exactly what appears to be happening for us which is really exciting. So again, we're not moving away from drinking water. What we're saying is we will get the other adoption fast as we break down the beers for drinking water and ultimately the big value proposition is in the waste stream we've covered many times.
This is a new slide though if you haven't seen it it's a good one.
Speaker Change: This is an actual right. This is an actual work product one to two pounds of concentrated paphos versus $20 to 40000 pounds spent carbon can.
Speaker Change: Can you imagine.
Speaker Change: It's a big deal. This is a big deal and so when we go into the market people look and you say you can't be so it is it is and we've done enough work now to really be credible in that way and then of course getting the next commercial installation and proving out its durability and its performance is really important and that's next.
Speaker Change: Really anxious to get that done.
Speaker Change: The lifecycle cost again hard to follow the detail there may be too small.
Speaker Change: Punch lines of the story is compared to conventional technology for the collection and destruction, we're going to save between 40 and 300%.
Since the bottom line.
Speaker Change: 40% to 300%, we save money, we do something the others can't do.
Speaker Change: We don't trade one problem for another we get to handle the all the regulations for handling waste really goes in our favor and we can we can play in all these different markets and I mentioned that because.
Speaker Change: We may partner with some and hang onto others.
Speaker Change: The way that's kind of the way the opportunities will present themselves, but we do represent the technical cutting edge. This is a leach a trial looking at water. The untreated is on the right. So the post AUC is on the left it's pretty remarkable. These are those ancillary markets where were his significant opportunity there just emerging for us.
About this way the clients are just now willing to spend money.
Speaker Change: It's not that we couldn't have done it two years ago.
Speaker Change: They didn't they want to spend the money two years ago.
Speaker Change: Now they will and again its a market incentive fee. So we believe we've got a big winner here.
Speaker Change: And as we always say, it's going to be a lot of hard work, but.
Speaker Change: It's worth it so.
Speaker Change: Okay I'll pause now we'll open it up for questions.
Speaker Change: Thank you everybody.
Speaker Change: At this time, we will conduct a question and answer session. If you would like to ask a question. Please press star one on your phone now and you will be placed into the queue in the order received.
Speaker Change: Once again, if you would like to ask a question. Please press star one on your phone now.
Speaker Change: Alright, Thank you Dennis.
Speaker Change: Terrific presentation.
Speaker Change: Uh huh.
Speaker Change: Find members as well, thanks, Charlie or sharing that with us.
Speaker Change: I think one thing that's important to distinguish differentiate is Q over Q numbers.
Have dipped a little bit but annually year over year biologic is still growing pretty crazy lately.
Speaker Change: Yes. So is there a question on that one.
Speaker Change: Is that.
Speaker Change: Some color on that is that what youre asking.
Speaker Change: Well, yes, we have a question can you explain better the debt in Q3 revenues.
Yes, so there's a couple of explanations here one is that I recall in the past we've had some projects with our engineers that allowed us kick up to a higher number. So that was that was not recurring those were one time events and then Charlie also pointed out that we've had some contracts that have come in that create.
Speaker Change: Asset balance sheet treatment, where we've not been able to recognize some of the revenue yet and that's also related to the engineering group. Good example would be our work on the Air Force contracts.
Speaker Change: And so that has an implication as well.
Speaker Change: We also have not seen the dramatic growth that we've seen in the past with poof.
Speaker Change: But we don't believe that that's reflective of the trends and we do believe that.
Speaker Change: And our history Q4, and as we emerge into Q1.
Speaker Change: That's historically been strong periods of performance for proof.
Speaker Change: So again the stated goal for prove hasn't changed which is over the long haul quarter over quarter. They believe they can achieve a 20% growth rate and they certainly have an incentive to do so.
Speaker Change: So we're pulling for that we don't control it but we're certainly pulling for it.
Speaker Change: I think as we go into 2025, there's a whole bunch more things happening there is really significant good events. We do believe we'll find traction with some of our water technology assets. That's great. We also have some projects that are coming to us through our engineers that's great.
We also have clear are preparing to launch in a really significant way big very significant numbers, all really bodes well for the future for biologic. So.
Speaker Change: Hope that answers the question Charlie you want to add to that or is that enough.
Speaker Change: He might be on mute, okay, Brian who come in when he can next question.
Yeah. So real short question, but what is the revenue number for Q3.
Speaker Change: Okay.
Speaker Change: Five two.
Speaker Change: No no no $4 4 million for the quarter 4.4365, just under $4 4 million.
Speaker Change: Okay great.
Speaker Change: Right.
Speaker Change: Sure.
Speaker Change: Alright.
Speaker Change: A number of questions from investors on the call today.
Speaker Change: Yes, let's start with this one when do you expect to uplift to a major exchange and what will it take to make this happen.
Speaker Change: Yeah. That's a great question I would like to see it happen in 2025 that would be my goal.
Guarantee it theres a lot of factors that need to come together.
Speaker Change: You know we've been hesitant to pull the trigger on that until we see some price appreciation in our underlying equity value of stock price.
Speaker Change: We believe that.
Speaker Change: In simple terms, because we are in a cash position and we're continuing to execute on advancing our business and we're not capital starved at all.
Speaker Change: It puts us in a very strong position to be able to just execute the business and prove out their commercial viability and results.
Speaker Change: If that's the case, which we do believe it to be.
Speaker Change: And that's what we should do.
Speaker Change: We should make the business grow.
Speaker Change: So thats whats happening, making sizable investments it clear is a great example, as well as of course, the other assets, but namely on the <unk> and water technology.
Speaker Change: And then of course proof is going to take care of itself right, they're going to grow we're excited about it that's fine.
Speaker Change: So we believe that the financial results will be substantial.
Speaker Change: And as that occurs the underlying value and price of our shares should be reflected.
Hence the slide that you are looking at the unseen value of the biological portfolio.
Yes.
Speaker Change: Our value is hinged upon only the technical performance that you see today.
Speaker Change: And most would argue it's somewhere around this existing mark.
Speaker Change: But there's so much more.
Speaker Change: So I think part of that is messaging and part of US part of the job for me and for our company and our teams to prove that these assets have commercial viability.
Speaker Change: And as we do we should see an increase in our valuation.
If we can do that then we believe the up listing process would be much more practical and less painful for our stockholders.
Speaker Change: Because we do care about our stockholders, we won't see that happen in the most the easiest way possible the easiest way possible now I remember if youre going to go to NASDAQ Thats $5 stock price nyse's much lower somewhere around a buck in half two and a half bucks, so doable, but given the underlying value. If we can prove that out for the marketplace.
Then it's possible that our stock can move into that range, which would make our listing.
Speaker Change: At that point merely a paper filing we have the net shareholder equity we need to shore up on our going concern language. That's primarily reflection of our continued investment venture stage investing like clearer. That's what that's a reflection of we need to increase our revenue base. So that we move into a positive cash flow on a consistent basis heading towards net positive.
Earnings per share.
Speaker Change: Wonderful to do before you uplift we think it's doable.
Speaker Change: We've also demonstrated our ability to continue to maintain capital assets to support these endeavors.
Speaker Change: It's only been what 16 years.
Speaker Change: Yes, we can do it.
Speaker Change: And so as a result of all those factors. We believe we should do that take the path of least resistance with a successful business is ready to handle the on slot that will kind of at a national market and will be much stronger for it. So that's the plan.
Speaker Change: We're always welcome to debate it.
Speaker Change: But that's yeah.
Speaker Change: In that vein I mean, how can you say the market value management execution plan the stock price is down compared to 10 years ago.
Speaker Change: Yes, that's a good question and it's taken US a long time to get here for sure. So I don't think you can look at it in a vacuum like that but.
Speaker Change: You look at today is that we've got a company that's right at breakeven cash flow or thereabouts is really close.
Speaker Change: It's easy to forecast forward and look and see profitability.
Speaker Change: It's also important to recognize that the technical and practical validation of all of these assets is substantial.
It did require a substantial investment, but it's nonetheless real.
Speaker Change: So this the accomplishment of those those missions.
Speaker Change: Is remarkable.
Speaker Change: And now look at the portfolio look at the portfolio and the value that we've created that.
Speaker Change: That we know can harvest by monetizing those assets through partnerships. So clearly the next one to fall.
Speaker Change: Right and yeah, it's basically worthy of a career.
In fact I had this conversation all the time.
Speaker Change: Each of these assets is worth a career.
Speaker Change: There are so substantial and there. So there has so much potential for transformative action in the market and and financial prosperity I don't make a lot of money, they're going to do great things for the world and make a lot of money.
And that's the mission of the company and by the way I'm, just going to point out again.
These are the ones you see there's a whole another list of assets in our portfolio you don't see.
Speaker Change: There is more coming.
Speaker Change: And so the business is this business. This is what we do we find that we find the gap in the market that can make a transformative change we prove it.
Speaker Change: We invented it we prove it and we partner it and as we partner it.
Speaker Change: There's going to be the Best example, right I mean, we had to slug away in the outer business for gosh eight years before our first partnership and then once the partnership came in we took a pre unsexy low margin business and turned it into a sexy high margin high growth business.
Speaker Change: That's what we did is remarkable and the same thing is going to happen with clear.
Speaker Change: And then the same things can happen with them.
Speaker Change: Water company and then it seems to have the battery.
Speaker Change: That's where we're headed.
So yeah, it's pretty remarkable so.
Speaker Change: I think the trick is in this very tough market for OTC companies.
Speaker Change: <unk>, it's been a brutal year, absolutely brutal and the fact that we're here in such a good financial position really just points to the undervalued nature of our equity that's the bottom line.
Speaker Change: It's the value unseen.
Speaker Change: And again, just think about it you know people people, who are invested serious money and clearer.
Speaker Change: Why.
Speaker Change: Why do they do that.
Speaker Change: They do it because they do a deep dive there.
Speaker Change: They're not watching the stock price I can assure you that our whether buyers are buying and selling on the win especially with the inefficient market.
Speaker Change: So as the market ran early in the year with increasing revenues at a dramatic pace. There's really good that's good for everybody. We also watch a lot of profit taking.
Speaker Change: Profit taking took the wind out of that sale and then of course, the world went into a period of uncertainty.
Speaker Change: With the elections now behind US, which is thank goodness and we've weathered all that and we're in a good financial condition and then these assets are coming to market.
That answers the question.
Speaker Change: Yeah that actually great segue do you believe the new administration will be favorable to solution for cleaning our country's water sources and reading P fast.
Speaker Change: Yeah, well so that's a good question Theres a number of things about our portfolio that will fit well with the we think with the current view of the administration right.
One is just think about the made in America concept right in America.
Speaker Change: Domestic manufacturing domestic job creation.
Net export that's the battery tech on steroids. It's also the water technology Alastair.
Speaker Change: It's actually all of them, but.
Speaker Change: So as those for sure. Okay then.
Speaker Change: The regulations for <unk> or <unk>, they're not going to they're not going to work backwards.
These are these are chemicals that have been linked to birth defects and cancer.
Speaker Change: Gig is up to.
Speaker Change: The gig is up it's a trillion dollar multi trillion dollar market.
Speaker Change: They literally these contaminants literally have poison the earth.
Speaker Change: So it's going to go forward not backwards and based on the comments that have come out of the administration about we're going to have clean water.
Speaker Change: I think there is.
Speaker Change: Ample opportunity for us to thrive in that market.
Speaker Change: Clearer clears politically and risk recession proof.
Alright, and keeping people healthy healthy.
Speaker Change: And say from infection.
Speaker Change: Especially with best in class solution.
Speaker Change: That's going to succeed in any season.
Speaker Change: And pets.
It's a widely known as the recession proof business nobody's going to giving up their pet right or a market political not no political sensitivity here your pet.
Speaker Change: So I think we're in a pretty good spot.
Speaker Change: Again, the beauty in our portfolio is that we're nimble.
Speaker Change: And we can sort of leave as the as the regulations become more and more clear and find our way into commercial again going back to the water in the <unk>.
Speaker Change: We play in so many different markets and now we've validated to a level of credibility given us the ability to participate in any of those different market segments, depending on what happens with the rules. So I think we're in pretty good spot.
And then of course pro Commerce Pro markets, that's all good for biologic too.
Speaker Change: Alright.
On the subject of clearer.
Speaker Change: We've seen go mode and date pushed and delayed and what makes you so optimistic that will happen in Q1.
Speaker Change: Yeah well.
Speaker Change: That's a good question you know.
We believe based on all the information we have that we should be there.
Speaker Change: Events that have calendars associated with them.
If I can just giving the example, when you're when you say scaled manufacturing ready to produce.
Basic I mean, the factories up the lines proven the data is done the certificate certifications are in place the materials a wreck was all there.
Speaker Change: Ready is ready right radios ready so right now the calendars to be ready for that in Q1 and with with that done that'll be the time at which we can say okay. Let's let's go and then there is some lag right you've got to produce you got to deliver you got a fulfill you've got to train all of that stuff starts with that moment.
Speaker Change: But it starts with ready to produce to scale and right now scheduled for Q1. So that's why we're confident now if it moves it moves.
Speaker Change: I can't you know things happen that we can't control and it happens all the time and so if that happens then we will move with it because here's here's what I know youre ready.
Speaker Change: It's so important.
Speaker Change: And it's so big.
What we should do is just make sure we get it exactly right.
Speaker Change: Because when it goes it's going to go big.
And that's what we're doing.
Speaker Change: That's why we're so patient and we just don't we just don't flinch, let's.
Speaker Change: Let's say you get it done.
Speaker Change: Yes.
Speaker Change: Alright, let's shift gears to the battery.
Speaker Change: When did betting submit.
Speaker Change: For third party validation when are those results are expected to be delivered and what other hurdle and we would expect.
Speaker Change: [laughter] one of their homes. So there's a ton of hurdles, yes. So third party validation on the battery testing. So we reported in the Q. We began a process of putting a program together with the department of energy I should mention also we've got the same program going with the water technology with the EPA, which is awesome and that was the direct result of some.
Speaker Change: Our relationships through Sally and other people that have open those doors.
Speaker Change: I would argue the highest level, both the OE and thus far in the EPA.
Speaker Change: These issues for the government for the United States of America, or particular national interest, Okay, and so we're there we're there with the right goods in the right stuff and the right people to execute.
Speaker Change: We have not submitted ourselves for third party testing yet.
Speaker Change: We have two private companies, we're also negotiating with.
Speaker Change: And we hope to move forward with them there'll be a number of testers by the time. We're done so we're trying to finalize that now make a business deal get it in motion, but you kind of have to think about it a minute right you're talking about shipping cells, you're talking about testing.
Speaker Change: Our sales run at a higher temp.
Speaker Change: They want to know are they say so I mean, all these questions come out rational questions.
Speaker Change: I think the work with the government.
Speaker Change: It's probably the validation at the highest mark it might also be the slowest.
Speaker Change: So I don't think its going to be fast, but it is significant so we'll try and move faster with preliminary validation and then what are the other hurdles, there's a million hurdles on the battery technology.
And the way to think about it is.
Speaker Change: But is it going to take for us to.
Speaker Change: Establish credibility.
Speaker Change: So that finance years, we'll build a factory in which we are a partner.
Speaker Change: Okay. So the good news is we have the talent onboard our engineers can certainly fill that bill and the qualifications they've done it for careers. They are highly skilled in this area and of course, we'll add more talent to the.
Speaker Change: The technology will be validated we'll have third party validation and I think that's a big piece of that moment at which somebody can say I want that.
Speaker Change: I want that.
Speaker Change: A lot of it.
Speaker Change: And willing to invest in it right.
Speaker Change: For all the right reasons okay.
Speaker Change: So then hurdles, yes, there's a bunch of hurdles you know we need to develop technologies that allow for scaled manufacturing. The current designs require automation they require efficiency in.
Speaker Change: And the lingo of the street, it's precision engineering to scale.
Speaker Change: So that's a big challenge.
Speaker Change: Again, remember, who our engineers are there.
Speaker Change: They are built for this.
Speaker Change: Yes, we can do it and it's not going to be me is highly qualified people and the trench digging that out so all of those hurdles are before us we're going to move as quickly as possible to get third party validation for the technical claims at this stage, but rest assured that testing will be ongoing and just to remind everybody when you're talking about testing the battery, it's not does it work and does.
Speaker Change: Energy come.
Speaker Change: What what.
Speaker Change: High temperature and what maximum charge and discharge rate what about overloading the voltage what happens when you do there what about UL certification safety profile fire risk no fire risk.
Speaker Change: All that is going to have to be done before you go commercial however.
Speaker Change: For an adopter technical adopter, we believe that we can prove.
Chemistry stability.
Speaker Change: We can prove voltage we can prove high energy density for a charge and discharge cycle and we can prove durability now.
Speaker Change: And those are the things that we're focused on to get through the development cycle of a form partnerships and again for technical Discerning Party.
Speaker Change: Got a lot of the goods and so a little bit of third party validation will help us so anyway, we'd like to see that happen.
Speaker Change: You know anywhere from 60 to 60 days for the next six months.
Speaker Change: But we Gotta go mode and were working on go mode. As we speak so that's our goal.
Speaker Change: Don't know that I can I can definitively say, that's what's going to happen, but that's the kind of range I'm expecting based on what's happening at the moment.
Speaker Change: Yeah, and just real quick is the validation potential for potential clients or something helpful.
Speaker Change: Yeah, that's a good question.
Speaker Change: That's a very good question you know.
Speaker Change:
I don't know is the answer really I mean think about it.
Speaker Change: We can debate it right if it's a technical buyer.
Speaker Change: It's technical buyer someone that's extraordinarily technical.
Speaker Change:
Speaker Change: Most of those people are harder you already appreciate what we already have.
So they there tend to buy the problem is the people that are that TANF, often or not the buyers right and so you kind of you kind of kind of assure yourself up with third party validation. So people can rest and check a box.
Speaker Change: So I'd say, yes, you need third party validation to get those deals done mostly that doesn't mean.
Speaker Change: It's not a hard fast rule. It just means the odds are that's the way it'll be we've had calls with major funders and the battery technology industry.
And you know what they say basically is congratulations.
Speaker Change: Yeah. This is what we're going to do and they said well, we're going to need third party validation, but if what you've said is real.
Speaker Change: They believe that our technology can be a leader in the world.
Speaker Change: And I would say, yes, we need to and so now you've got to do the work kind of get through that adoption. The beauty too is that the appetite is so high for this sort of.
Speaker Change: Technical advancement some of those parties, who can fund and partner they want to be here now.
Speaker Change: Right why well because they smell a bargain they want to get involved early as opposed to late.
Speaker Change: To be there when the moment is right. So some of that conversation is back and forth. It's almost like the collaboration to get to the success Mark.
Speaker Change: Very much like our medical deal by the time, we formed a relationship.
Speaker Change: Three companies come together to make it work.
Speaker Change: Are we going to be the same for battery Tech right.
Speaker Change: So we'll see we've got some work to do.
Speaker Change: That's the earliest in the innovation cycle. So don't forget that it's also the probably the biggest and probably the most urgent threat from the world to bring forth what we're bringing.
Alright, alright.
Speaker Change: Certainly.
Speaker Change: And wrap it up here soon but we have several questions about the H E b.
Speaker Change: People are wondering about the install date in new Jersey, what are some expectation install target dates.
Speaker Change: Yeah, I don't even know what's happened is the you got it had some permitting delay and we got notification on October 31 that the man.
The general contractor, who got the permits necessary to build put the building up.
I believe I'm pretty sure. It's tilt up building does not rocket science and so that'll go fast it does have energy power transfer.
Speaker Change: Roadway.
Speaker Change: No HVAC, but ventilation.
Speaker Change: Energy power that comes in to run all the machines.
Speaker Change: The devices themselves have been built through in Oak Ridge the beautiful.
Speaker Change: Big Theres, a couple of skid Mount so those get loaded up on a truck and they all in and so I don't actually have the installed base.
Speaker Change: No. The client is anxious to get going and the general contractor gets paid to make it go. So so we should know more soon.
Other than that I don't I don't have a date, yet, but we should know more soon and hopefully the weather doesn't turn band in New Jersey and delay of some more but.
Speaker Change: We've got to figure all that out.
Speaker Change: It really is a spot we don't control it.
We know how to say it more clearly other people control it and they tell us when they are ready and so we are waiting for them to tell us.
Speaker Change: Alright, alright, well. Thank you for that Dennis I appreciate you being thorough and your answers.
Speaker Change: That's all we have for today.
Speaker Change: Okay, well, let's just close out there and everybody so again.
Speaker Change: I think the unseen value is the slide of the day.
And again, we want to thank you for your support.
Steadfastly marching forward on the technical performance don't intend to change our our thesis on that.
Speaker Change: We'll continue to do our best to leverage these technical assets and our capital conserving way.
2024 was a record year to make sure we make sure everybody knows that big record year.
Speaker Change: Come in and just under $20 million and we think given.
Speaker Change: Given the growth trends in these acceptance we'd love to continue the pace of 100, approximately 100% growth year over year, So that's going to put a.
Speaker Change: Put a mark out there for 2025, and we're going to do everything we can to make it happen. So thank you very much and.
Speaker Change: Let me know how we can help you.
Speaker Change: This concludes today's conference call. Thank you for attending.