Q4 2024 Nauticus Robotics Inc Earnings Call
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Speaker Change: Good morning, ladies and gentlemen, and welcome to the <unk> Robotics 2020 for Q4 and full year earnings Conference call. At this time all lines are in a listen only mode. Following the presentation. We will conduct a question and answer session and if at any time. During this call you require immediate assistance. Please press star zero for the operator.
Speaker Change: Also note that this call is being recorded on Wednesday April 16 2025.
Christian: I would now like to turn the conference over to Christian woman corporate development and the mistaken leader. Please go ahead.
John Gibson: Thank you and good morning, everyone. Joining me today and participating in the call are John Gibson CEO President zinc.
Vicki Hey: Vicki Hey, interim CFO.
Speaker Change: Daniel J Hart field operations leader.
Vicki Hey: Steve Walsh sales leader and other members of our leadership team.
Vicki Hey: On today's call. We will first provide prepared remarks concerning our financial and operations result.
Vicki Hey: Following that we will answer questions.
Vicki Hey: We have now released our results for the full year of 'twenty 'twenty, four which are available on our website.
Vicki Hey: In addition, today's call is being webcast and a replay will be available on our website. Shortly following the conclusion of the call. Please.
Vicki Hey: Please note that comments, we make on today's call regarding projections or our expectations for future events are forward looking statements.
Vicki Hey: Forward looking statements are subject to a number of risks and uncertainties many of which are beyond our control.
Vicki Hey: These risks and uncertainties can cause actual results to differ materially from our current expectations.
We advise listeners to review our earnings release and the risk factors discussed in our filings with the S. E C.
Vicki Hey: Also please refer to the reconciliations provided in our earnings press release, as we May discuss non-GAAP metrics on this call.
John Gibson: I will now I'll turn it over to John.
John Gibson: Thank you and good morning, I appreciate you guys joining us on the call today.
John Gibson: 'twenty 'twenty four was a transformational year for nautica side. We appreciate all of the support that we've had throughout the year, our cultural shift from a research and development company into a commercial revenue generating company is well underway, we continue to deliver high value solutions to our customers by pushing technological.
John Gibson: Boundaries.
John Gibson: 224 was our inaugural season of offshore operation for the up not vehicle, we were executing legacy contracts to prove the technology and did we were excited about the pipeline of new contracts, which we will begin press releasing soon our 2025 season should demonstrate significant improvement from four.
John Gibson: 24, as we implement the lessons learned from.
John Gibson: For our first commercial offshore season, and put them in place to succeed in 'twenty five we confirmed to catch software operation on a C. Trepid R. O V. The initial test reinforced our belief that all pending and rovs existing software will enable autonomy, allowing our customers to reduce their overall subsea.
John Gibson: Operational costs.
John Gibson: This opens the market for two kit sales to R. O V operators for the very first time stay tuned for an announcement of the official release of tool kit for Rovs are.
John Gibson: Our manipulator team continues to develop a fit for purpose Olympic car variant and plans to install the first set onto our aqua not vehicle in the second half of the year.
John Gibson: We'll make arc or not.
John Gibson: First autonomous underwater vehicles with autonomous manipulators and factor like it would be only autonomous underwater vehicles with autonomous manipulators.
John Gibson: The company had a gear.
John Gibson: Year that was focused on raising money and exchanging.
John Gibson: Our debt.
John Gibson: It keeps kind of really cover the details of that are just a few minutes.
John Gibson: We anticipate an inflection point in 2025 as we begin to help the offshore industry moved from legacy operations, which means man.
John Gibson: Operator, as opposed to autonomy to increase trust and reliance on a new way of executing work autonomously customers are already showing eagerness to fit our execution model into their current plans and excitement is building around how their operational models will change, they're coming to us with questions and ideas and this sparking a lot of.
Speaker Change: <unk> discussions that Daniel Steve are both with us today and I'll describe that in their comments just a moment.
Speaker Change: Our acquisition of Ctrip had last month was a game changer for ship provides an additional catalyst in this offshore execution transition existing ctrip with customers and contract relationships have given us easy access to a broader group of early adopters, which effectively reduces our customer concentration.
Speaker Change: She trepid in Nautica is legacy customers are welcoming this combined offering of a vessel with both the aquanaut vehicle and in ROE V onboard and in the near future and I'll talk about ROE V coupled with an autonomous underwater vehicle.
Speaker Change: I would like to get on both vehicles. The first subsea robotic collaboration solution will be realized and customers can see the immediate value.
Speaker Change: Terrific location and Robert Louisiana provides a testing facility with much closer proximity to our lodging location for the Gulf of America, improving our logistics and reducing our cost the government side of the company had a breakthrough in early 2025 by signing an alliance with our long term customer lightish to address them.
Speaker Change: Emerging challenges in the defense sector government contracting has longer lead times larger upside have greater stability the seasonal commercial contracts. We're excited to pursue these opportunities, but first let's turn this call over to Vicki over financial activities I want to update you on our NASDAQ continued listing standards.
Speaker Change: We procured or noncompliant tissues with NASDAQ in early 2025, we are closely monitoring the water markets and with that I'd like to turn it over to Vicki <unk> to talk about the financial details Vicky.
Vicki Hey: Thank you John and good morning, everyone.
Speaker Change: Let's first address the restatement that was announced on March 19th that was identified possibly yet and all that.
Speaker Change: Company Yesterday filed restated 2024 financial statement Azov and for the quarters ended March 31.
Speaker Change: At June 30.
Speaker Change: <unk> due to a correction of accounting treatment for a complex 20 Watt Q1 2020 for that transaction.
Speaker Change: The reason for the restatement revolved around the debt transaction that cut on January 30 of 2024.
Speaker Change: The transaction was incorrectly treated as debt modification rather than debt Englishman.
Speaker Change: Because of this change in accounting treatment that was required to be fair valued quarterly using a multi colored statistical model.
Speaker Change: Variable include volatility stock price variability on risk free rate.
Speaker Change: Given that the change in fair value each quarter changed materially.
Speaker Change: But all of these adjustments are noncash and are excluded in our non-GAAP measures.
Speaker Change: The full year noncash impact of this treatment on the subsequent exchanged fed stock resulted in an incremental net loss impact of $106 $4 million.
Speaker Change: This does not impact our shareholders' deficit calculation is the offset to that sits in APAC, giving a net zero impact on our shareholders' deficit.
Speaker Change: Important to note that no longer exists on the balance sheet as of December 2024.
Speaker Change: Was exchanged into series a preferred stock first of all you have $110 $3 million.
Speaker Change: This is a nonrecurring SAP all you and will not be further valued in future quarters.
Speaker Change: This preferred exchange was part of our plan to deleverage our balance sheet and successfully regain listing compliance with NASDAQ, but you cut in February 2025.
Speaker Change: In addition to regaining NASDAQ compliance we have been keenly focused on securing the past we will need 325, while we ramp up commercialization, we have seen some great progress on last year in Q1.
Speaker Change: In January 2025, the company conducted further at the market offerings in which we issued and sold almost seven 5 million shares for net proceeds of $19 4 million a portion of the funds enabled us to do the acquisition of <unk>, which will enhance our financial position as we move through 2020.
Speaker Change: Five.
Speaker Change: In January 25, we would use the conversion price of the loans until January 24 term loan agreement to $1 59, which resulted in subsequent confessions, which further improved the position of our balance sheet.
Speaker Change: I will now discuss in more detail our financial results for 2024.
Speaker Change: Revenue for the year was $1 $8 million, which is down $4 8 million from 23.
Speaker Change: The decline in revenue was largely due to the reduction in government contracts and 24. However.
Speaker Change: However, and 24 the company did recognize revenue for commercial operations of the App cannot vehicle for the first time in the company's history.
Speaker Change: That throughout 2025.
Speaker Change: Operating expenses for the year were $24 $9 million, which is a $36 eight.
Speaker Change: $8 million improvement from 2023.
Speaker Change: Excluding nonrecurring costs in 23 of $25 4 million impairment of property and equipment $2 5 million loss on contract.
Speaker Change: One $5 million severance costs operating operating expenses dropped seven $4 million year on year, primarily due to continued focus on cost control.
Speaker Change: G&A costs for the year with $13 $4 million, which is an improvement of $4 9 million compared to 23.
Speaker Change: This is primarily due to head count reduction and a result of dedicated focus on reducing costs and eliminating non value added spent.
Speaker Change: Yes.
Speaker Change: Net loss for the year was $134 $9 million. This is an $84 2 million increase from the net loss in 'twenty three.
Speaker Change: This is primarily due to the $127 6 million loss on extinguishment of debt recognized during the year.
Speaker Change: Partially offset by the change in fair value of $21 $1 million related to warrant liabilities in debentures and $25 4 million impairment recognized in 'twenty three that did not occur again in 'twenty four.
Speaker Change: Adjusted net loss for the year was $26 1 million compared to $34 $3 million for the prior year.
Speaker Change: This shows an $8 2 million improvement.
Speaker Change: Even considering the $4 8 million dollar reduction in revenue year on year.
Speaker Change: Cash at the end of 2004 was $1 2 million compared to <unk> $7 million at the end of 'twenty three.
Speaker Change: This is primarily a result of funding received through debt and equity financing and they're not in the market.
Speaker Change: <unk> offset by cash used in operations.
Speaker Change: Last year, we did a lot of work to deleverage and clean up the balance sheet throughout the year, we converted that with a principal value of $35 $5 billion to preferred stock in December 24, we did take on new debt of $14 3 million in the first half of 2024 and a further $2.
Speaker Change: $1 million.
Speaker Change: Fair value of $2 $5 million in the second half of the year.
Speaker Change: With these actions along with the raise to our after market facility. During Q1 2025, we are in a strong position in 'twenty five continue the path of commercialization of the Ocwen out vehicle, while staying appropriately funded.
Jonathan: I will now pass the call back over to Jonathan.
Jonathan: Thank you Vicky.
Speaker Change: Thank you a great deal for our company on all of the tireless work you've done to get this prayer.
Speaker Change: To recap, we substantially reduced our run rate 2024.
Speaker Change: We substantially improved our balance sheet and we generated commercial revenue.
Speaker Change: For the first time with the offer or not.
Speaker Change: Now I'm going to turn this over to the exciting part of this call. Thanks changed here.
Speaker Change: Talking about customers and revenue that I do about.
Speaker Change: Thanks, Patrick and I will turn it over to Daniel to discuss the emergence of <unk> first backlog of offshore commercial work.
Daniel Steve: Thank you John I will provide a summary of our readiness for the upcoming offshore season, and Steve will then cover the upcoming pipeline.
Daniel Steve: Alkhanov vehicle to which completed work off the United States Gulf Coast last year is currently scheduled to mobilize on board a vessel along with the <unk> in the coming weeks.
Daniel Steve: With the Ctrip it acquisitions, we expect a significant backlog of work to be contracted for this year for the vessel and are currently working through the schedule to ensure commercial efficiency throughout the year. We play on working for numerous new customers this year, which will effectively reduce our customer concentration.
Daniel Steve: We will be conducting inspections, highlighting the efficiency and cost reduction potential the aquanaut system will provide while maintaining flexibility with high quality <unk> service.
Daniel Steve: We also have contract discussions ongoing with our current customers who are eager to take advantage of our service.
Daniel Steve: Previously the deepest we have communicated with the <unk> system was at a depth of roughly 3500 meters, but we are now excited for the opportunity to complete a deepwater communications test after mobilization of the vessel to a targeted goal of 3000 meters.
Daniel Steve: Untether test will help set the stage for future applications and expand the operational functionality of the vehicle throughout the offshore industry.
Daniel Steve: As we continue to focus on the operational readiness for the offshore commercial work. We also want to continue pushing the awkward our technology further to enhance the capabilities of the platform.
Daniel Steve: With that I am excited to update that we have completed our factory acceptance test in water on our second aquanaut vehicle. We have identified another test location, Florida for further testing of the capabilities of the vehicle with plans to complete a contracted demonstration of leak detection. In addition to testing the <unk>.
Daniel Steve: System with an autonomous surface vehicle or ASB.
Daniel Steve: We are in communication with multiple customers, who are interested in nearshore work without the use of a large vessel and believe we can support this concept with a successful test paired with the ASP.
Daniel Steve: The third awkward at vehicle build build plan is ongoing and parts of consolidated to maintain readiness to assemble workload for this year has created demand for additional vehicles, but the goal is to focus on delivering exceptional service in 2025 and prepare for vehicle three assembly to perform future work.
Daniel Steve: Ctrip at acquisition also provided a great opportunity to expedite the integration of our toolkit software with the Comanche RB we successfully implemented our software into the existing Comanche operating software with plans to test our commercial release of the vehicle in the coming months.
Daniel Steve: The results of this integration will provide the RFP technological advances that include station keeping a wave pointing these are the first steps towards automating the aro beef <unk> functionality.
Daniel Steve: We are currently seeing the busiest offshore market for the Gulf Coast region in quite some time and we are in great position to take advantage of the hot market. This year.
Daniel Steve: With that I will now turn it over to Steve for an update on our 2025 offshore commercial pipeline.
Steve Walsh: Thank you Daniel I'm excited to be here today, and looking forward to what our combined offering will bring to the offshore industry.
Steve Walsh: I am pleased to announce we recently commenced a long term <unk> contract with a leading marine transportation company to provide drill support operations off the United States Gulf Coast.
Steve Walsh: The contract is confirmed for 120 days with the potential for additional days if needed.
Steve Walsh: We're currently operating off the coast of New York in the offshore wind industry.
Steve Walsh: The project started early this month and is scheduled to return back to the Gulf Coast in early May.
Steve Walsh: Upon arrival of Euro V to Louisiana, we plan to mobilize onboard the DP two vessel alongside the Auckland vehicle.
Steve Walsh: Current customers are excited about the potential to utilize our autonomous technology this year.
Steve Walsh: We have firm work to complete level, two and level for inspections on multiple producing platforms off the Gulf Coast. These projects are expected to be completed within a 30 day walk.
Steve Walsh: In addition to that we.
Steve Walsh: And we are in communication with a super major oil and gas company on a large inspection campaign for decommissioned assets.
Steve Walsh: Based on the meetings with this customer we feel strongly that we will we will be awarded a minimum of 30 to 45 days of work.
Steve Walsh: We have continued work with other Super majors, who have previously utilized the aqua not vehicle and due to the successful initial programs in 2024. They are excited to put the system back in the field. This summer. The initial expected duration of these projects is a minimum of 45.
Steve Walsh: Days.
Steve Walsh: Another scope that is recently presented itself off the eastern coast of the United States when operating the technologies of both the Aqua not vehicle.
<unk> simultaneously, allowing for greater efficiency and utilization of the assets onboard.
Steve Walsh: This is an environmental assessment that could lead to another 20 days of work for the mobilized spread.
Steve Walsh: With the work described and the additional work expected to come due to the intensity of the market.
Steve Walsh: There is a great opportunity to demonstrate the effectiveness of autonomy and hazardous environments.
Steve Walsh: 2025 is shaping up to be one of the busiest offshore markets of the past decade, we.
Steve Walsh: We anticipate our contracts to return strong margins and a steady stream of revenue during the North American offshore Susan.
John Gibson: With that I will now turn it back over to John.
Speaker Change: Well I appreciate that Steve.
Speaker Change: It's been a real pleasure to be a part of this team and witness all that has been accomplished.
225 is expected to be another outstanding year, as we continue to bring in more and more customers in that accretion number of engagements. We have this is a target rich environment offshore right now for equipment.
Speaker Change: <unk> solutions.
Speaker Change: Much like what we have here in the last call, we mentioned being on the cusp of achieving what we set out to do not express robotics was founded.
Speaker Change: To provide collaborative autonomous underwater robotic solutions for our customers on a commercial basis and this really is going to help them reduce their operations cost and still have a great solution for our shareholders because it'll be a high margin operation.
Speaker Change: We created a new company, New culture, 2024, and now we're focused on customer needs not just new technology. We are positioned to have a substantial revenue growth and margin improvement year over year and with US. Today is also the founder of Ctrip. It Bob Chris two joined and I would say let him introduce rich.
Speaker Change: Sure, Bob Hi, I'm, Bob Chris I am delighted to be a part of the team. We are so excited about our newest possibilities of the combined companies and we are working hard to get the technology in new autonomous technology onto our traditional menu of services and into the field.
Speaker Change: Bob has been instrumental in enabling us to achieve our vision their support their knowledge in particular their customer relationships transformational for us and so glad to have both state Bob wallboard and with that I'd like to turn it over operator to questions. Thank you Sir.
Speaker Change: Ladies and gentlemen, if you do have any questions. Please press star followed by one on your Touchtone phone well been here a prompt then you hand has been raised and she would should you wish to decline from the polling process. Please press star followed by two.
Speaker Change: And if you're using a speakerphone you will need to please lift the handset first before pressing any keys. Please go ahead and press star one now if you have any questions.
Speaker Change: First we will hear from cooler Cornell medical.
Speaker Change: What is how our research. Please go ahead.
Speaker Change: Hi, Thank you for taking my questions.
Speaker Change: We're excited about 2025, so the first one would be about 2025 and trying to understand what the top line could be.
Speaker Change: Thank you for talking about the pipeline.
Speaker Change: Help us understand one simple.
Speaker Change: Simple P times Q.
Speaker Change: Number of days in the season that you should be operational at least 425 and I understand that could expand later in later years, but number of days in the season number of vehicles, you have and how should we kind of think of sizing that 2025 potential revenue opportunity.
Daniel Steve: Daniel why don't you cover the number of days in the season.
Daniel Steve: Well the season runs from anywhere kind of right, where we're at now March April as the early portion of the season and it goes through the October November based on whether Thats when the weather starts picking up and so from those months, it's been about seven months window. They can expand a little bit if we're lucky with weather.
Daniel Steve: Our target area.
Daniel Steve: For our offshore assets, we actually have two aquanaut vehicles working now both vehicle one and number two.
Daniel Steve: Two Comanche is working and we also have a third arco not that require some capital and assembly and a third row.
Daniel Steve: We are looking at the market and if the demand is great enough and we see an opportunity to to actually invest in those and put them in the market with a good return on capital, we would entertain doing that as well at all.
Speaker Change: Okay. So how should we think of the potential revenue for 2025.
Speaker Change: Significantly higher than 24.
Speaker Change: Hey.
Speaker Change: I'd say I think we announced it.
Speaker Change: B.
Speaker Change: I'll just repeat the number I put out before but I'm really confident we will do greater than $16 million in 2025, I'm, a little hesitant to say how much greater but you can assume there is upside in that number, particularly if we found the capital to put the two additional assets to work.
Speaker Change: Great. Thanks, So the second one would be on the competitive landscape and then I had a number of companies that have autonomous underwater vehicles. What is your differentiation and you kind of alluded to it in terms of manipulators and being the first one out there, but what makes your solution compelling.
Speaker Change: To prospective customers.
Speaker Change: Well, it's another really good and hard questions.
Speaker Change: To compare and contrast, these you'd almost have to put together a consumer chart, where you had short course that you filled in in the place where we fill in really strong as we have a leadership position in manipulators.
Speaker Change: For autonomous underwater vehicles.
Speaker Change: Those manipulators will be something that not a part of competitive platforms such as <unk>.
Speaker Change: Freedom for motion Eric.
Speaker Change: We have a payload capacity in the front of the vehicle that allows us to.
Take objects and place them on the bottom are picked objects up from the bottom and bring them back to the surface that also can be advantageous is doing.
Speaker Change: Fluid sampling if we're looking at leak detection.
Speaker Change: Differentiating it wouldn't have shown that <unk> out to.
Speaker Change: Catch fluid samples after the <unk> discovered.
Speaker Change: Nick or indication and so able to eliminate quite a lot of cost for our customers. We are completely on tethered.
Speaker Change: We still find most of the AAV operators worked in this area due to collision avoidance etcetera remaining tethered.
Speaker Change: And our vehicles on tethered and we are depending on our collision avoidance software and continue to certify verify and test that as we go to make sure that we're able to vary.
Speaker Change: The leading edge of collision avoidance for underwater vehicles.
Speaker Change: Unfortunately, the speed that we're going makes us much.
Speaker Change: But supporters of trying to control with Tesla doing Matti, we're just trying to control an underwater vehicle due to three <unk>.
Speaker Change: We.
Our depth is quite good at 3000 meters and I think most of our competitors have not gone to that depth, yet and then tried to communicate with the surface and.
Speaker Change: Another.
Speaker Change: If you compare us to say our hugoton hugoton this more of a torpedo missile in the water. It goes in a straight line. It takes a long distance to turn and it has to continue moving when it comes back.
Speaker Change: The entire design is to work more like Aqua Cocker, we can stop hover and rotate around objects in so that we can get three 360 degree views and we can do that efficiently without passing by coming back passing by coming back and so speed of operations as significantly.
Speaker Change: Higher and the quality of imaging is quite high when you are able to orbit in object as opposed to do fly ash.
Speaker Change: That's great.
Speaker Change: Question is about capital and understanding your liquidity.
Speaker Change: And you talked about.
Speaker Change: Actually investing in the paradox.
Speaker Change: At a week.
Speaker Change: If there is demand so can you talk about the capital requirements for the business.
Speaker Change: It's a good question.
Speaker Change: Obviously, we were.
Speaker Change: It's becoming commercial last year, and so we use substantial amount of capital in order to prove that the technology. We have is commercial and ready for prime time.
Speaker Change: Now that we're out and we're seeing a tremendous amount of demand based on this demand, we really need to try to put additional assets to work because more assets, we put to work the greater our our income will be here and so the two we have or we have one Comanche and 25 and we have a <unk>.
Speaker Change: Aquanaut vehicle three.
Speaker Change: And we do think Steve and Daniel are tasked with the following that is.
If they can bring a contract in here for those two.
Speaker Change: We believe we can get contract based lending so a non dilutive approach to bringing in capital to put those two assets to work in.
Speaker Change: You sure you look at any one of those assets and you think that the total revenue, including the the vessel the asset is.
Speaker Change: We can generate in that $6 million to $8 million per season.
Speaker Change: Revenue and it's just a question of how soon in the season can we get those together and get those contracts in order to to have the funds to assemble those without diluting shareholders.
Speaker Change: That's great. Thank you so much.
Speaker Change: Thank you.
Speaker Change: Once again, ladies and gentlemen, if you do have any questions. Please press star followed by one on you touched on something.
Speaker Change: Next question.
Paul: <unk> will be from Paul It's Jim. Please go ahead Paul.
Speaker Change: Okay.
Speaker Change: Yes. Good morning, Thanks for taking the call I was just curious you mentioned the.
Speaker Change: This season in particular is sounding.
Speaker Change: To be a very good one and what are the market dynamics that led to that.
Speaker Change: Or to lead to this excuse me.
Speaker Change: Oh, that's interesting I could I'll, let Steve answer this as well but.
Speaker Change: It does look like a really good season oil prices have been stable and in a position where people can make long term plans offshore as a long term investment cycle. So they look at full cycle economics offshore and it's not as much.
Speaker Change: Short term market like you have an onshore shallow drilling. So these are extremely long term commitment to see vehicle platforms in development and now theyre doing their inspections et cetera, some of its regulatory as well, Steve what what's driving the market.
Speaker Change: Well the.
Speaker Change: The atmosphere of drilling.
Speaker Change: Is being pursued and pushed by the government is.
Speaker Change: It is attractive to our to our customers.
Speaker Change: The decommissioning.
Speaker Change: Aspects.
Speaker Change: Where.
Speaker Change: Companies have brought back old assets that they are looking to.
Speaker Change: I understand what's going on.
Speaker Change: Inspect and then work on removing.
Speaker Change: And.
Speaker Change: Just the general vitality of oil and gas right now.
Speaker Change: Additionally, with wind.
Speaker Change: With.
Speaker Change: Some of the other environmental aspects.
Speaker Change: It's many.
Speaker Change: The disciplines coming together.
Speaker Change: That are working too.
Speaker Change: Yes.
Speaker Change: Another real macro aspect of it Paul is.
Speaker Change: This industry suffers from non investment for long periods, when the markets now and Thats, where we are offshore at the moment, there's been a lull in general invest but now everybody or bring in working on their infrastructure. They are expanding their infrastructure. They are proving their infrastructure and it's just creating a lot of subsea demands but hope.
Speaker Change: That helps up.
Speaker Change: Yes. Thank you I guess, having been a investor early on with you folks in the <unk>.
Speaker Change: Rest of the market opportunity I, just wonder if it's causing you to pivot it all differently or I guess it sounds.
Speaker Change: Youre, just staying with the opportunities that <unk> had over the last year or so and executing on those is really where your focus continues.
Speaker Change: So I.
Speaker Change: I wouldn't characterize anything about a pivot.
Speaker Change: Have a great platform and we are just approaching those markets that have high demand. It looks like if I can return to the margins that we need first off thank you for being a long time investor in the company I appreciate your sticking with us and asking some questions.
Speaker Change: It's.
Speaker Change: Big difference for us was talking to someone earlier.
Speaker Change: We're in a market now that's emerging and Theres a lot of demand for the offer not a lot of conversations going on if I look at competition. This is a great place to invest because our competitor really is oceaneering and if I had to talk about oceaneering I'd say if you combined most of these fleets together theres not enough assets to meet the demand that we see coming.
Speaker Change: For autonomous subsea vehicles, so I don't even think of them as a competitor we both need to do well so that autonomy is adopted faster than the diffusion rate picks up so we're at that point, where this technology has gone from.
Speaker Change: A whiteboard to commercial and it's a matter of getting these in getting the operational processes in place and just delivering great results.
Speaker Change: Paul I'd also like to mention that we've had the opportunity to visit and talk to some of our existing customer base and introduce ocwen and the.
Speaker Change: Excitement that our clients have to two combined both the rovs capability and technology, along with Ocwen and the autonomy that it delivers is really exciting.
Speaker Change: That scope is expanding and they are they are.
Providing more and more opportunities for us and so I think that the combined technologies.
Speaker Change: Are being very well received by the customer base.
Speaker Change: Okay.
Speaker Change: Thank you for your input.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Thank you and at this time Mr. Gibson, we have no further questions. Please proceed.
Speaker Change: I greatly appreciate.
John Gibson: I'll pay for later on the call and particularly our employees and our customers that are listening, we've got incredibly dedicated work and.
Speaker Change: And we wouldn't have made all of this progress without them.
Speaker Change: A lot of us worked hard.
Speaker Change: The long hours and just appreciate their sacrifice.
Speaker Change: I'm also excited about the fact that this is probably the last call that we will have to do where revenue and is something that we don't really.
Speaker Change: So in as much as we should Q2, we'll be talking about our revenue youll be able to see the revenue you would be able to see the margins and we're excited about the fact that we're shifting into being a true commercial company from an R&D company and stay tuned for Q2 I think good things are on the horizon. Thank.
Speaker Change: Thank you so much operator.
Speaker Change: Thank you Sir.
Speaker Change: Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending and at this time, we do ask that you. Please disconnect your lines.
Speaker Change: Yeah.
