Q1 2025 SuRo Capital Corp Earnings Call
and many more. Thank you. Thank you.
Hello and welcome to Cereo Capital's first quarter, 2025 earnings call. My name is Melissa and I will be your coordinator for today's event.
Speaker Change: Please note this conference is being recorded, and for the duration of the call, your lines will be on listen only. However, you will have the opportunity to ask questions at the end of the presentation. This can be done by pressing star followed by one on your keypad to register your question.
Speaker Change: If you require assistance at any point, please press star zero to be connected to an operator. I'd now like to turn the call over to Evan Schlossman, principals. Please go ahead.
Speaker Change: Thank you for joining us on today's call. I am joined by the Chairman and Chief Executive Off-Serve Cereo Capital Marksline and Chief Financial Off-Serve Out-Screen. Please note that this slide presentation corresponding to today's prepared remarks by management is available on our website at www.serocap.com under Investor Relations events and presentations.
Speaker Change: Today's call is being recorded in broadcast live on our website, www.surocap.com Replay information is included in our press release issue today. This calls the property of Suro Capital and the unauthorized reproduction of this call in any form is strictly prohibited.
Speaker Change: I would also like to call your attention to customary disclosures in today's earnings press release regarding forward-looking information. Statements made in today's conference call and webcast may constitute forward-looking statements which relate to future events or our future performance or financial conditions.
Speaker Change: These statements are not guarantees about our future performance, or future financial condition or results, and involve a number of risks estimates on certain keys, including the impact of any market volatility that may be detrimental to our business, our portfolio companies, our industry and the global economy that could cause actual results of different materially from the plans and tensions and expectations reflected in or suggested by the flow of the statement.
Speaker Change: Actual results made different materially from those in the forward looking statements as a result of a number of factors including but not limited to those described
Speaker Change: from time to time in their company's filing to the SEC.
Speaker Change: Management does not undertake to update this code with statements unless required to do so by law. To obtain copies of Cereo Capital's latest SEC filings, please visit our website at www.cereocap.com for the SEC's website at SEC.gov. Now, I would like to turn the call over to Mark Klein.
Mark Klein: Thank you, Evan. Before we dive into our portfolio highlights, I would like to start with a brief overview of the broader market environment.
Mark Klein: The first quarter of 2025 was a particularly challenging period for the public market. The NASDAQ posted its worst quarterly performance since 2022 and major indices such as the Russell 2000 and the Dow Jones industrial average also saw a significant decline.
Mark Klein: ongoing uncertainty around global trade tensions and new tariffs we've weighed heavily on investor
Mark Klein: This environment also had a direct impact on private market valuations.
Mark Klein: As always, we determined fair value for our investments using a range of inputs including public market comparables. With the public markets declining, our portfolio company valuations as of March 31st naturally reflected the broader compression.
Mark Klein: This turbulence intensified in the second quarter. In April , the S&P 500 experienced one of the most volatile stretches in recent memory, despite ending the month down just slightly under 1%.
Mark Klein: Meanwhile, the VIX spiked to about 55 reaching its highest level since the onset of COVID.
Mark Klein: Despite these challenges, we are encouraged by the recent earnings calls for major tech companies which reaffirmed their commitment to capital spending, even as macro uncertainties persist.
Mark Klein: We believe our portfolio is well positioned for when the IPO window opens, reopens. Our companies continue to execute at a high level and many are building fundamental momentum that we believe will drive valuation creation over the long term.
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Speaker Change: With that context in mind, I'd like to begin by highlighting one of our largest investments Open AI, which continues to deliver extraordinary growth and market leadership. In March, the company announced a $40 billion funding round at a $300 billion post-money valuation. The largest private capital raise ever by a technology company.
Speaker Change: This marks a significant step up from its previous $7 billion dollar round at a $150 billion post-money round announced in October of last year.
Speaker Change: This achievement reflects the incredible success OpenAI has demonstrated over the past few months.
Speaker Change: <unk> growth has been driven by a steady cadence of new models releases and enhanced functionality recent launches, including the <unk> and all for many models as well as significant improvement to chat gpt's user interface memory and search capabilities. These advances represent a step change in chat gpt's.
Speaker Change: Capabilities, combining with state of art reasoning with seamless tool integration.
Speaker Change: Furthermore, public reports from the information indicate open AI is forecasting revenue to more than triple in 2025% to approximately $13 billion.
Speaker Change: And is projecting revenue to reach $29 billion in 2026 $54 billion in 2027 $86 billion in 2028 or $125 billion in 2029 and $174 billion. In 2030. These forecasts represent an increase from the companies.
Speaker Change: Previous forecast in the fall of last year.
Speaker Change: Moving onto core week.
Speaker Change: On March 28th core we've completed the largest technology company IPO since 2021, raising $1 5 billion at a valuation of approximately 23 billion.
Speaker Change: Core weeks momentum as a leading AI infrastructure provider has continued through its IPO in March core we've announced a five year 11 9 billion contract with open AI to supply access to AI infrastructure.
Speaker Change: According to the information core we've has entered into advanced discussions to provide invidious, new Blackwell chips to Google This potential Google deal underscores core we have strategic advantages as a nimble AI first cloud provider with a uniquely close relationship with Nvidia.
Speaker Change: Since the IPO at the end of March recent positive developments have further support for <unk> positioning and have helped to underscore both the company's critical role in the AI infrastructure structure ecosystem and the sustained importance of AI infrastructure as a whole.
Speaker Change: These developments have contributed and over 35% increase in the stock price based on today's closing price significantly outperforming broader market indices.
Speaker Change: More broadly recent developments continue to reinforce the critical importance of AI infrastructure and compute capacity, even amid ongoing economic uncertainty.
Speaker Change: <unk> recent $40 billion fund raising further underscores strong investor confidence in sustained demand for AI infrastructure, while hyperscale orders remain committed to aggressive investments supporting future AI growth.
Speaker Change: On recent earnings calls alphabet, Microsoft Amazon and met all highlighted the continued significance of AI compute capacity and robust market demand driving future investments.
Speaker Change: Notably alphabet, Microsoft reaffirmed their forward Capex guidance, while metal increased its 2025 capital expenditure forecast to $64 72 billion.
Speaker Change: For reference we marked our <unk> investment at $31 52 per share in the first coarser first quarter, which is inclusive of a customary discount.
Speaker Change: Today, the stock closed over $54 per share, we believe that <unk> remains underappreciated in the public markets and expect the company's critical role in the AI infrastructure ecosystem to be better understood by the markets over time.
Speaker Change: While core we've been building the foundation for AI at the infrastructure layer one of our other portfolio companies Camber continues to innovate at the application layer Canberra recently unveiled its visual suite to Plano, making advanced AI capabilities more accessible and everyday designed according to.
Speaker Change: Business wire and company announcements, Kansas rapid growth global growth continues to accelerate with more than 145 million users joining the platform since the launch of timbers canvas initial visual suite in 2022.
Speaker Change: Today more than 375 designs are created every second with a total of 36 billion designs created since canvas large 2013.
Speaker Change: Tampa has gained traction across a 190 countries and by more than 95% of the fortune 500.
Speaker Change: Growing global adoption across the worlds most influential companies has helped propel kampa to more than a $3 billion 3 billion annualized revenue, marking an increase of more than 30% over last year.
Speaker Change: Transitioning to our recent investment activity, we are pleased to share that the subsequent to quarter's end, we made a $5 billion investment in Plaid through a sole limited partnership interest in 17 to 89 capital Nirvana LP, our investment was part of <unk> $575 million financing.
Speaker Change: Led by Franklin Templeton Fidelity, NEA, Ribbit capital and others. According to Techcrunch. The round was completed at $6 $1 billion post money valuation.
Speaker Change: According to CNBC. This financing is anticipated to be pledged last private financing before the company list on the public markets. According to pitch book the financing brings the total capital raised to date by play to approximately $1 3 billion.
Speaker Change: Plaid is a market leading fintech platform that enables secure and seamless connectivity <unk> between financial applications and consumers.
Speaker Change: In recent years Plaid has evolved from a business solely focused on bank linking into our broader financial infrastructure provider offering a suite of data and risk solutions better are essential to modern financial services.
Speaker Change: Today Plaid supports more than 100 million users globally with more than half of the U S. Adults, having used plaid and is trusted by over 12000 financial institutions.
Speaker Change: Across 17 countries. It's infrastructure is integrated with more than 8000 digital finance apps, including many of the top fintech platforms, such as Venmo Robinhood cashing in corn, the corn basis.
Speaker Change: We are excited about <unk> latest suite of features including signal, which allows businesses to confirm if an account is in good standing before initiating a transfer and identity verification, which enables secure biometric onboarding. These tools help reduce fraud failed payments and friction financial.
Speaker Change: <unk>.
Speaker Change: We believe these initiatives initiatives position <unk> well for continued growth as one of the premier plays in.
Speaker Change: Fintech.
Speaker Change: Before turning to our quarterly results I'd like to briefly highlight another position Columbia acquisition Corp. Two in.
Speaker Change: In January Columbia, you announced the definitive definitive business combination agreement with Metroplex trading company LLC doing business as grabbing garden, a mobile focus online firearms retailer in late March Metroplex announced the nomination of Donald Trump Junior to the board of directors of the publicly traded company.
Speaker Change: That will result from its proposed business combination.
Speaker Change: Our capital is invested in Colombia, a sponsor too in the sponsor corporate Columbia acquisition too. We believe this transaction went consummated will be another testament to the success of our spec sponsors strategy established several years ago.
Speaker Change: Before highlighting additional updates on our portfolio I'd like to turn to our first quarter results. We ended the quarter with a net asset value of $156 8 million or $6 66 per share. This compares to a total net asset value of $6 68 per share at year's end.
Speaker Change: Please turn to slide 10.
Thorough as top five positions as of March 31 were open AI through our investment in our type one deep ventures Whooped core, we've which includes our $50 million investment in CW opportunity too and our aggregate $10 million follow on secondary investments in core we'd learn neo and service type.
Speaker Change: These positions accounted for approximately 46% of the investment portfolio at fair value. Additionally, as of March 31, our top 10 positions accounted for approximately 72, 2% of the investment portfolio.
Speaker Change: Okay.
Speaker Change: Even with our broader portfolio in January we executed a $1 million follow on investment in Whoop via safe note bring our total cost basis to $11 million, we made our initial $10 million investment in.
In Q2 of 2022 via secondary transaction.
Speaker Change: Since our initial investments move has solidified itself as a position as a leader in the wearable fitness and performance tracking space.
Speaker Change: Last year <unk> expanded it into several key international markets, including the Middle East, where it has seen strong consumer adoption and growing brand recognition.
Speaker Change: <unk> also continued to distinguish itself as the go to Wearables for elite athletes and high performance individuals.
Speaker Change: And a testament to its credibility at the highest level of sports Rory Mcilroy wore a walk throughout his winning performance at the master's showcasing the devices roll in tracking tracking and optimizing real time athletic performance one of the largest stages in sports.
Speaker Change: Given the significant valuations of its competitors, most notably aura, which raised $200 million of five $2 million valuation in December we believe there is tremendous upside for who we are.
Speaker Change: Also encouraged by the recent solar.
Speaker Change: <unk> pose for CEO and one of its major athlete sponsors Cristiano Ronaldo, both which you indicated there was a major announcement coming later this week.
Speaker Change: Before I turn the call over to Allison I would like to reiterate how excited we are about the positioning of our portfolio.
Speaker Change: Across AI infrastructure and applications.
Speaker Change: And consumer goods and services, our portfolio is well situated with market leading companies within AI infrastructure.
Speaker Change: Open AI and vast data represent approximately 20% of our gross assets.
Speaker Change: Within AIE, Jason companies canvas service, Titan will Blink health and Lucas robotics, representing 30% of our gross assets.
Speaker Change: Within our consumer vertical liquid death in line or two dynamic leading brands with business is approaching scale to potential IPO.
Speaker Change: Altogether these investments give our investments our investors access to some of the most highly anticipated pre IPO names in the private markets.
Speaker Change: I would also like to provide further context regarding the valuation of our portfolio companies that recently have become public Alison will provide additional details in our preferred and our prepared comments.
Speaker Change: We value our recently.
Speaker Change: Public positions and service tightened and core are we using quarter end trading prices adjusted for a discount rate. These shares were not registered as of March 31.
Speaker Change: The results in these position values Mark.
Speaker Change: But below the public market prices at quarters end as previously announced our positioning corvid Corvid is marked at $32 52 per share that mark is meaningful meaningfully below <unk> current trading values. The stock closed today at over $54 per share.
Speaker Change: Additionally, we marked surface tightened at $88 45 per share at quarters end. This stock close today at approximately 130 at $113 per share depending on various conditions.
Speaker Change: Service Tightens lockup is expected to run through early June and core weaves lockup is anticipated to run through the middle of August to the middle of September.
Speaker Change: Finally in terms of dividends as we have mentioned before and consistent with all Bdcs, we're required to distribute functionally all of our net realized gains consistent with our past practices, we will be transparent and communicative about our dividend strategy.
Mark Klein: For your attention and with that I will hand, it over to Alison Greene, our Chief Financial Officer.
Alison Greene: Thank you Mark I would like to follow Mark's update with a more detailed review of our first quarter financial results as of March 31st as long as the brief highlight of investment activity during and subsequent to quarter end and our current liquidity position.
Alison Greene: I will also include an update on our 6% notes due 2020.
Alison Greene: Their repurchase and a six 5% convertible notes due 2029.
Alison Greene: As Mark mentioned during the first quarter, we made two follow on investments.
Alison Greene: On January 31st we completed an aggregate $300000 follow on investment in Orchard series, one senior preferred shares and safe now.
Alison Greene: Bringing our total investment orchard to approximately $12 $8 million.
Alison Greene: Second on February six we completed a $1 million fallen in Batman Whoops terrific note, bringing our aggregate investment in work to approximately $11 million.
Alison Greene: Subsequent to quarter end, we completed a $5 million investment in part in our class a common shares through 17 89 capital Nirvana two L. P, an SPV and which throw capital at default limited partner $5 million does not include a 7% or $350000 origination fee paid at the time of investment or other capitalized cost of the transaction.
Alison Greene: Definitely we will keep the expenses of the activity on an annual basis.
Alison Greene: Regarding our liquidity as of quarter end.
Alison Greene: We ended the quarter with approximately $18 $1 million of liquid assets, including approximately $16 $2 million in cash and approximately $1 $9 million in unrestricted public securities.
Alison Greene: Not included in our unrestricted public securities or approximately $24 million of public securities subject to lockup or other sales restrictions as of quarter end.
Alison Greene: These include our investments in service Titan and our direct ownership inquiries.
Alison Greene: As of March 31st startup capital common shares and start with tightening we're not ready to start and we are therefore subject to certain restrictions on Taylor transfer for which we apply a discount to the closing share price as of the reporting date.
Alison Greene: The shares will be registered and freely tradable by June 2025.
Alison Greene: As of March 31 zero capital class a common shares were not registered and we are therefore subject to certain restrictions on sale or transfer for which they have higher discount the closing share price at the reporting date. We anticipate these shares will be registered and freely tradable by September 2025.
Alison Greene: Similarly, we take the same approach regarding the valuation of our class a membership interest in CW opportunity to out here.
Alison Greene: CW opportunity throughout P. As in SPD for which the class a membership interest is totally invested in the class a common shares of <unk>.
Alison Greene: Zero capital was invested in our class a common shares of <unk> through its investment in a class a membership interest that you have the opportunity to L. P. As of March 31 zero capital is confirm the underlying class a common shares of <unk> held by CW opportunity to up here, we're not registered and are therefore subject to certain restrictions on sale or transfer for which we apply a discount to the closing share price as of the reporting date.
Alison Greene: To ascertain the valuation of our class a membership interest at quarter end.
Alison Greene: Please turn to slide 15.
Alison Greene: Segmented by seven general investment themes, the top allocation of our investment portfolio at quarter end was to artificial intelligence infrastructure and applications, representing approximately 28% at the investment portfolio at fair value.
Alison Greene: Or is it a service and consumer goods and services for the next two largest categories at approximately 22% and 17% of our portfolio respectively.
Alison Greene: 12% of our portfolio was invested in financial technology, and services and education technology companies accounted for approximately 12% of the fair value of our portfolio.
Alison Greene: Logistics is the pricing category accounted for approximately 8% of the fair value of our portfolio and third sports accounted for 2% as at March 31st.
Alison Greene: Please turn to slide 16.
Alison Greene: I'd like to first provide an update on the note repurchase program, but the 6% notes due 2026 and the issuance of our six 5% convertible notes due 2029.
Alison Greene: On August six 2024 zero Capital's board of directors approved a discretionary note repurchase program, which allows the company to repurchase up to $35 million, our 6% notes due 2026 exclusive of any applicable fees through open market purchases, including block purchases in such a manner as well comply with the provisions of the investment Company Act of 1940 estimated.
Alison Greene: And the Securities Exchange Act of 1934 at the minute.
Alison Greene: During the quarter ended March 31, we repurchased an additional 199996% notes due 2026 under the note repurchase program. It as at March 31st we had repurchased 1 million 413294, or 35 $3 million in aggregate principal dollar amount of the 6% notes due 2020, I'm guessing that repurchase program.
Alison Greene: Resulting in the total used as they authorized available funding.
Alison Greene: As of March 31, the remaining aggregate principal balance at the 6% notes due 2020 with approximately $40 million.
Alison Greene: On August six 2024, I'd throw capital entered into a note purchase agreement to issue up to a maximum of $75 million in aggregate principal amount of six 5% convertible notes due 2029 and the net proceeds from the offering of the convertible notes will be used to repay outstanding indebtedness and make investments in accordance with our investment effective investment strategy and for other general corporate purposes and 2024.
Alison Greene: Under the note purchase agreement Joe capital issued a total of $30 million in aggregate principal at initial and additional convertible note on January 16, 2025 zero capital issued $5 million in additional convertible notes.
Alison Greene: Upon issuance of the additional notes on January 16th and as at March 31, 2025, Yeah getting aggregate principal amount of our convertible notes became $35 million.
Alison Greene: Just on the convertible notes when they take quarterly in arrears on March 30th June 30, and September 30, and December 30, <unk> at a rate of six 5% per year.
The convertible notes will mature on August 14th 2029, and may be redeemed in whole or in part at any time or from time to time at our option on or after August six 2027 upon the fulfillment of certain conditions.
Alison Greene: Well, Nick will be convertible into shares of our common stock purchased their sole discretion and then there's also a conversion rate of $129 323 shares of our common stock for $1000 principal amount of the convertible notes subject to adjustments and limitations as provided in the note purchase agreement is this one that theyre treated as a single series with the initial note and have the same terms as the initial node it is going up.
Alison Greene: They're fungible and make equally with the initial note. The note purchase agreement includes customary representation of warranty and governance at the company.
Alison Greene: We ended the first quarter of 2025, but then it navy per share of $6 a ticket.
Alison Greene: Consistent with our financial reporting.
Alison Greene: The decrease in NAV per share.
Alison Greene: The 8% at the end of 2024 was primarily driven by <unk> 16 per share decrease due to net investment loss.
Alison Greene: That by its most net per share increase resulting from the net change in unrealized depreciation of investments during the quarter and its two cent per share increase in the impact of stock based compensation during the quarter. Other items had a net immaterial impact at March 31st and currently there are $23 million 551869 shares of the company's current stock outstanding.
Speaker Change: That concludes my comments and wed like to thank you for your interest and support of Ferro capital now I will turn the call over to the operator to start the Q&A operator.
Speaker Change: Thank you.
Speaker Change: As a reminder, if you would like to ask a question on coal call. You May Press Star followed by one on your keypad to register your question.
To withdraw your question for any reason you May press star two.
Speaker Change: Kindly request that you limit yourself to one question.
Speaker Change: And we'll go ahead and take our first question from Brian Mckenna of citizens. Please go ahead.
Brian McKenna: Thanks, Good evening everyone.
Speaker Change: So we're not too far off from the six month lockup expiration for service tightened can you.
Speaker Change: Can you just remind us what your plan is here with this position I'm, assuming you will sell this down and relatively short our short order as you typically deal assuming no material change in the stock price from here and then in terms of redeploying that capital I mean, where are you seeing the best opportunities to invest right now is it still in and around the AIP or are there.
Speaker Change: Some other emerging fees that are a little bit more compelling today similar to the planned investments so any color there would be helpful.
Brian McKenna: Thanks, Brian.
Speaker Change: First of all as we.
Speaker Change: We've been really consistent about that we don't we don't view ourselves as holders of public securities and when the lockup expires.
Speaker Change: Pretty much as you described it.
Speaker Change: In normalized market conditions, we would exit the physician and from there where we would deploy it I'd say, we're seeing a whole host of opportunities Brian as you're not discussing that discussed on these calls we are probably seeing more opportunities now than ever before clearly AI and AIA Chase.
Speaker Change: Hum companies are.
Speaker Change: And the immense opportunity set.
Speaker Change: We are looking at we can continue to look in the fintech areas.
Speaker Change: And some of the other and some of the consumer areas, but.
Speaker Change: AIA adjacent which covers a wide swath of is a lot of what we're seeing right now.
Speaker Change: Thank you.
Marvin Fong: Our next question is from Marvin Fong with BTG. Please go ahead.
Marvin Fong: Alright, great. Good evening, thanks for taking my questions.
Marvin Fong: Just like a little more color on the discount for the shares that Werent registered.
Marvin Fong: For my own Edification is this something that's kind of standard.
Marvin Fong: The percentage of discount or is this something that you know that that is subjective and case by case, but just kind of love the understand that process and then a second question which is.
Marvin Fong: Love if you have any thoughts on.
Marvin Fong: The non-profit situation at open AI.
Speaker Change: Okay news in the last 24 hours it sounded like the non-profit will continue to be involved.
Speaker Change: And the management and ownership so any thoughts you have there would love to hear it. Thanks.
Speaker Change: Thanks Lauren.
Alison Greene: Thanks for your support I'll, let Alison answered the discount question and then what.
Speaker Change: What I would say in respect to the open AI, we're all reading the news at the same time I don't think that the non for profit being involved.
Alison Greene: Good news.
Alison Greene: Impact the value of the company for the public for the as it goes to become a for profit organization.
Alison Greene: I certainly don't think it was rate is particularly negative or particularly impactful and clearly as we did.
Alison Greene: <unk> discussed in our prepared remarks.
Speaker Change: Open AI stories unfolding extremely rapidly and very exciting.
Alison Greene: Traction they get and the ongoing progress that theyre, making.
Alison Greene: Secondly, this channel that also prescribed.
Marvin Fong: Thanks, Marvin and thank you for your question regarding the discounts.
Marvin Fong: It just hasn't been applied to core even service tightened those very specifically right. It related to the fact that the shares that we own or that are owned on our behalf are not registered at this time as of March 31st they were not ready to start upon IPO.
Marvin Fong: At the point when they become registered by the company and the company's transfer agent, we will remove that account.
Marvin Fong: Okay.
Speaker Change: Thank you.
Speaker Change: Our next question is from Alex Paris with Barrington Research. Please go ahead.
Alex Paris: Hi, guys. Thanks for taking my question I have.
Speaker Change: I guess so.
Speaker Change: Asked my question about.
Speaker Change: Rules and process regarding return of capital to shareholders under your corporate structure.
Speaker Change: Obviously.
Speaker Change: Service tightened in core we even those shares are registered and sold will be sold presumably at a profit.
Speaker Change: At some point.
Speaker Change: You'll you'll need to return that cash to shareholders is.
Speaker Change: One way or another.
Speaker Change: While the dividend cash or stock things like that.
Speaker Change: Why.
Speaker Change: You sold those shares in.
Speaker Change: Yeah.
Speaker Change: The third or fourth quarters of this year.
Speaker Change: When would that dividend be approved and paid would it be three months later six months later that kind of thing.
Speaker Change: Terrific. Thanks, Alex and thank you for your ongoing interest and support in our company.
Speaker Change: As we've done in the past and you're well aware, we try to be extremely communicative in respect to our our dividend strategy our dividend policy.
Speaker Change: And as we get clarity to.
Speaker Change: Net realized gains we tried to communicate that as expeditiously as possible to the public because it's it's important for investors to understand that.
Speaker Change: We would if we were in a position to have net realized gains by the end of the year, we would make a distribution by the end of the year.
Speaker Change: If there was some residual distribution that we'd have to make we would make it early in.
Speaker Change: The next.
Speaker Change: In Q1, but you know as <unk> seen in the past, we usually get way out in front of it for investors.
Speaker Change: And tell everybody, how we view it and how we plan to distribute that how and when we plan to distribute those distributions.
Speaker Change: Okay.
Speaker Change: Thank you and we do have a follow up from Brian Mckenna of citizens. Please go ahead.
Speaker Change: Okay. Thanks for the follow up I apologize if I missed this.
Speaker Change: But I believe open AI valuation roughly doubled since you invested in the company. So why isn't your investment only marked up about 60% to 100% of this mark up closer in the quarter are you applying some kind of a discount to the stated valuation.
Speaker Change: The last round or is it something else just trying to get some more color here.
Speaker Change: Yeah, No problem well you had a 157.
Speaker Change: Uh huh.
Speaker Change: Post money valuation.
Speaker Change: And the pre money valuation of this round is $2 60.
Speaker Change: The headline is approximately double if you go from pre money to post money, but the actual increase is.
Speaker Change: Quite a bit less.
Speaker Change: Thank you very much I would like to turn the back call back over to Mark Klein for any closing remarks.
Mark Klein: Well again, thank you everyone for joining the call. We greatly appreciate your interest in the company and our company.
Speaker Change: To all of you that ask questions. Thank you again for your interest and support and feel free to reach out to us.
Mark Klein: Through our investor portal that would be our.
Speaker Change: A pleasure to be communicated with you. Thank you again for all appreciate it.
Speaker Change: Thank you very much once again that does conclude today's conference. Thank you appreciate your participation.
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