Gevo - Earnings Call - Q2 2020
August 10, 2020
Transcript
Speaker 0
Welcome to Gevo's Second Quarter twenty twenty Earnings Conference Call. My name is Andrew, and I will be your operator for today's call. At this time, all participants are in a listen only mode. Later, we will be conducting a question and answer session. Please note that this conference is being recorded.
I'll now turn the call over to Jeffrey Williams, Gevo's General Counsel and Secretary. Please go ahead, Mr. Williams.
Speaker 1
Good afternoon, everyone, and thank you for joining Gevo's second quarter twenty twenty earnings conference call. I would like to start by introducing today's participants from the company. With us today is Patrick Gruber, Gevo's Chief Executive Officer Lynn Small, Gevo's Chief Financial Officer and Carolyn Romero, our Vice President Controller. Earlier today, we issued a press release that outlines the topics we plan to discuss today. A copy of this press release is available on our website at www.gevo.com.
I would like to remind our listeners that this conference call is open to the media and that we are providing a simultaneous webcast of this call to the public. A replay of today's call will be available on Gevo's website. On the call today and on this webcast, you will hear discussions of certain non GAAP financial measures. Non GAAP financial measures should not be considered in isolation from or as a substitute for financial information presented in accordance with GAAP. Reconciliation of these non GAAP financial measures to the most directly comparable GAAP financial measures is contained in the press release distributed today, which is posted on our website.
We will also make certain forward looking statements about events and circumstances that have not yet occurred, including, but not limited to, projections about Gevo's operating activities for the remainder of 2020 and beyond. These forward looking statements are based on management's current beliefs, expectations and assumptions and are subject to significant risks and uncertainties, including those disclosed in Gevo's Form 10 ks for the year ended December 3139, which was filed with the Securities and Exchange Commission and in subsequent reports and other filings made with the SEC by Gevo, including Gevo's quarterly reports on Form 10 Q. Investors are cautioned not to place undue reliance on any such forward looking statements. Such forward looking statements speak only as of today's date, and Gevo disclaims any obligation to update information contained in these forward looking statements, whether as a result of new information, future events or otherwise. On today's call, Pat will begin with a discussion of Gevo's business developments.
Carolyn will then review Gevo's financial results for the second quarter of twenty twenty. And following the presentation, we will open up the call for questions. I'll now turn the call over to Pat.
Speaker 2
Thanks, Jeff. We continue to produce and sell hydrocarbon products from the hydrocarbon plant in Texas. The interest in our products remains strong. And in fact, on the business development front, we continue to make progress on additional contracts, and we'll get them done pretty soon, I expect. These contracts actually should be our biggest ever.
Yes, they're taking a lot longer to get done than I wanted to, but we are focused on getting them completed in the near term and so are the counterparties. We believe that the size of these contracts collectively should enable us to change our business model to that of a developer, a project developer, a technology licensor and plant operator. To fulfill the demand from these contracts, we expect that we will need three plant sites, two more plant sites in addition to that at Luverne. In fact, we have two additional sites under LOI and are developing more options. As it turns out, it's a good time for acquiring ethanol plants given the duress they are under with COVID.
We plan on setting up special purpose entity whereby each plant build out is a project and other people invest the capital, both debt and equity in the project, while Gevo would retain a minority ownership interest. This would be sometimes we'll talk about this as off balance sheet financing. It's project financing approach. On this project based approach, we are working with Citigroup to raise the debt and equity needed to build these plants. So far, we are getting initial interest from several potential investors, having done management meetings, whereby we explain the details of our projects, including what appear to be attractive project returns.
Pro form a unlevered returns at the project level, accounting for all of the construction, hard and soft costs, including the various fees paid to Gevo over the project construction and operating periods, are in excess of 15%. That's good. It could be higher depending upon financing and structure. It makes the it's the returns that make us interesting for people, especially combined with the potential for whole gallons of hydrocarbon fuels with net zero greenhouse gas emissions. We are getting good time and attention from prospective investors.
The questions are good. We have lots of work to make it all come together. We need to bring it home and get it done. We are encouraged by the discussions. Citigroup tells me that they're encouraged.
We have the numbers, in a mix of financial groups and strategic investors that Citigroup expected to have when we began the process. So it looks to be on track. At the GevaWink level, we are working on refinancing the white box secured note. We have approximately $12,500,000 of debt due on December 31. By having some cash in the balance sheet, it helps us create more options.
We could partially pay white box down and gain an extension until 04/01/2021, which gives us a longer runway to secure debt from other potential lenders. We will develop the options over the next few months and choose a path. I expect that we will have some significant announcements soon, both on the offtake side and for licensing. I would have liked to talk about them today, but agreements need to be finalized completely, almost there. Looking forward, we expect to get the contracts done, pinned on our plant sites beyond Luverne, figure out who is partnering with us to build those assets and finish up on the refinancing of the white box note.
Now I will turn the call over to Carolyn, who will take us through the financials. Carolyn?
Speaker 3
Thank you, Pat. Gevo reported revenue in the second quarter of twenty twenty of one million dollars as compared to $5,100,000 in the same period in 2019. During the second quarter of twenty twenty, hydrocarbon revenue was $900,000 compared to $100,000 in the same period in 2019. Hydrocarbon sales increased because of higher shipments of finished products from our demonstration plant at the Southampton Resources Inc. Facility in Silsbee, Texas.
During the second quarter of twenty twenty, revenue derived at the Luverne facility for for ethanol sales and related products was $100,000 compared to $5,000,000 during the same period in 2019. As a result of COVID-nineteen and unfavorable commodity environment, we terminated our production of ethanol in distillers grains in March 2020, which resulted in lower sales for the second quarter. Cost of goods sold was $2,600,000 in the 2020 versus $8,500,000 in the same period in 2019. Cost of goods sold included approximately $1,000,000 associated with the production of IBA and related products and maintenance of the Luverne facility and approximately 1,600,000 in depreciation expense. Gross loss was $1,700,000 for the 2020 versus $3,300,000 for the second quarter of twenty nineteen.
Research and development expense decreased by $300,000 during the 2020 compared to the same period in 2019 due primarily to a decrease in personnel consulting expenses. Selling, general and administrative expense increased $5,700,000 during the 2020 compared with the same period in 2019, due primarily to an increase in personnel, consulting and insurance expenses and professional fees. For the second quarter of twenty twenty, we reported a loss from operations of $5,300,000 compared to $6,500,000 for the same period in 2019. In the second quarter of twenty twenty, cash EBITDA loss, a non GAAP measure that is calculated by adding back depreciation and noncash stock based compensation to GAAP loss from operations, was $3,100,000 compared to $4,800,000 in the same quarter of 2019. Interest expense for the 2020 was $500,000 a slight decrease compared to the same period in 2019 as a result of lower amortization of original issue discounts and debt issuance costs.
For the second quarter of twenty twenty, we reported a net loss of $6,000,000 or a loss of $0.40 per share based on weighted average shares outstanding of 15,071,105 shares. This compares to a loss of $7,100,000 in the 2019 or a loss of $0.60 per share. In the second quarter of twenty twenty, Gevo recognized net noncash loss totaling $200,000 due to changes in fair value of certain of our financial instruments such as warrants and embedded derivatives. Adding back these noncash losses resulted in a non GAAP adjusted net loss of $5,800,000 in the 2020 or a non GAAP adjusted net loss per share of $0.39 This compares to a non GAAP adjusted net loss of $7,200,000 in the 2019 or a non GAAP adjusted net loss per share of $0.61 Now I'll turn it back over to Pat to wrap things up. Pat?
Speaker 2
Thanks, Carolyn. And with that, I think we can open it up for questions. Operator?
Speaker 0
Thank And our first question comes from the line of Amit Dayal with H. C. Wainwright.
Speaker 4
Hey, good afternoon, everyone. Thank you for taking my questions.
Speaker 2
So
Speaker 4
Pat, with Hi, Pat. Any color on the two commercial agreements you highlighted in the press release? Does this relate to the offtake and the licensing agreements you touched on? Or is it something else?
Speaker 2
It does, both of those. And what's happened is that as you look forward in the world of hydrocarbons, you have to step back. Everyone gets really focused on jet fuel, and jet fuel is good. But this year, everyone knows it takes a hit, it'll be back, and people need to be greening up their jet fuel still, and they aren't going to ever escape it. That's just reality, and it's being driven from pretty much most of the points of the world.
So that's important. Now with gasoline and remember, we make renewable gasoline. It's high octane renewable gasoline. While the world has moved and is continuing to move towards higher compression engines, and that means that premium grades to collect gasoline are going to be in increased demand, and that's driving demand for our products. And so I think the agreements would reflect that.
And then you'd also we'll make progress and announce what we're doing in the licensing front, too.
Speaker 4
Understood. Are these 3Q or 4Q type guidance?
Speaker 2
Man, these are ones we've been working on for months already. And I would love to say, I really did expect that we have them done already. So we could say something about them today, but they just aren't ready yet. So I think they should be done soon rather than not far away, at least the beginning of these. We have a series of them.
And so sooner rather than later, but I hate to these days, it's a pain sometimes just to get a signature on a piece of paper properly.
Speaker 4
Understood, guys. And then on the ethanol side, I mean, comments sort of alluded to it, a lot of distressed assets potentially in the market for you guys to look at as a part of your efforts to move into more of a project developer type role. But then sort of a separate question on that front, some ethanol companies have also shifted to producing high quality alcohol through hand sanitizers, etcetera. Are you looking into anything along those lines to support cash flows, etcetera?
Speaker 2
Well, we take an investment at a plant like ours to do that, and it's not mainstream and it doesn't overlap the mainstream of our strategy, and it doesn't overlap with production of isobutanol. So that would just be a capital outlay that it would to make to go do it. And the thing is, is that any company, any ethanol company on earth, if they want to, could do that. So the guys who are giant ethanol players are way better positioned to do that because they just had a small distillation column to get to the purity and the grades that they need to make that stuff for hand sanitizer, and we can't compete with them economically. And if the ethanol industry holds true, it will drive that price down as well.
So we just look at it and say, yes, I could it's a great opportunity to spend a bunch of capital. By the time we got it installed and built, the margins will be gone and we'll get we wouldn't make money. So it's just and it's not what we intend to do. We're going to use every bit of our capital to commercialize the hydrocarbons, the jet fuel and the renewable gasoline. That's our focus in life.
Speaker 4
Understood. And then going back to sort of the Citigroup efforts, you highlighted Luverne plus two potentially additional plant sites?
Speaker 2
That's right.
Speaker 4
Is Citigroup working on like these three opportunities? Or is it just focused on maybe one or two of them? Any color on how
Speaker 2
they are thinking about sort of executing with what they have in front of you? Yes. With the contracts we have line of sight to, we can see that we're going to need three plants. And that results in about 70,000,000 gallons of offtake demand on a take or pay basis, ballpark. And we see good contracts because we're doing this stuff under confidentiality discussions, other the players who are negotiating with us, they can see who they are, too.
So you already know. And Citigroup is working with us on all three. So to fulfill that demand, we think we're going to need three plants. We would need we build out Luverne to something like 13,000,000 gallons, And then we'd have two other 30,000,000 gallon hydrocarbon plants. Those so think of that as 50,000,000 gallon ethanol plants.
But by the time we're done with them and we're making them into hydrocarbon plants, probably around 30,000,000 gallons. That's the way to think of it.
Speaker 0
Okay. Okay.
Speaker 4
Yes. That's all I have, Pat. I will take my other questions offline. Thank you so much.
Speaker 2
You bet you.
Speaker 0
Thank you. And our next question comes from the line of Sean Steverson with Water Tower Research.
Speaker 5
Thanks. Hello, Pat.
Speaker 2
Hey, Sean.
Speaker 5
Hey, Pat, can you going back to your answer to Amit's question, can you expand a little bit on how the isooctane renewable gasoline is going to be used? I mean, you're talking about blending or complete drop in fuel replacement. Obviously, it would reach carbon reduction targets, but I'm still unclear as to how that gets into the market and would be used.
Speaker 2
Sure. So the thing with when we're talking about isooctane, it really is the basis of gasoline itself. Okay, yes, granted, when traditional gasoline and typical gasoline is made from fossil resources, ours isn't. Ours is made from isooctane. There's a product that's in the petrochemical fuels industry called alkylate.
It's the stuff that you use to make premium gasoline. Well, that's really what our stuff is like. It's we have no particulates, no sulfur, no nitrogen. That means we don't have it doesn't pollute the same way. And of course, it has potentially net zero.
So octane is the major component of gasoline. It's upwards of 80%, 90% of gasoline. It's in that range. And then you put in other like 10% ethanol and some other products that help start cold start and things like that. And so it's a pretty it's a really good product.
Now as the world moves marches forward and demand for higher mileage engines goes on, those are high compression engines that is that needs high levels of octane, isooctane. So that's what we're making and selling. And so we fit perfectly with where that segment of the gasoline is. Now when you look out to the future, and this is an amazing thing. If you look out to the future, well, first look at today, you look at how much fossil fuels are being burned.
It's nine fifty five trillion gallons, nine fifty five billion gallons sold today. And you look out to 2,050, you know what, it's in the same order of magnitude of fuels being sold even with EV, which is astounding. So that always shocks people because everyone says, well, we're just going to use EV to solve a problem. Well, you know what, if UEVs, we've got to retool and redo all fleets everywhere. People have to have new cars and we have to have new infrastructure and new electricity.
So it's a not yet in the fullness of time, sure, big progress. But you know what, here's a product that doesn't require a change by consumer behavior. They just buy it. It doesn't require it just goes into the drops into the system. You can blend it to whatever level you want.
You can make it complete gasoline to your point that you asked about. You could if someone wants to do that or blend it, you still get a carbon reduction because the carbon footprint is so low. So it's a very different kind of a paradigm to solve that problem. And even in 02/1950, gasoline is the major contributor to greenhouse gases. It's not jet fuel.
Jet fuel is minor. And it's not even the diesel fuel, that's minor compared to gasoline, even out in 02/1950. So it's one of these things and that's pretty astounding. Now we've been proving out our performance for years working with Altman Carless and the European F1 racing circuit. And so our stuff is it's really good product.
And so that's why there's interest. That answer your question?
Speaker 5
Yes. But how does the cost curve work on this, too? So let's say, volume as your plants get up and running, I mean, is this something that becomes, again, like you mentioned, a blending opportunity? Or how would it be used? And how would it be from a cost competitive basis, say, at $50 or $60 a gallon?
Speaker 2
Yes. I think it would be is that we could deliver we're using carbon value. And let me say it differently. When you think of our product, it's a premium gasoline product. So it's at the high end of what we'd normally be priced, even if you could make it from fossil based.
So it's there's an underlying price though that's based on gasoline, premium gasoline, like a carbon. And it has green value. So now there's enough reliable mechanisms, low carbon fuel standard in California or European red RED policies, where carbon can be valued. And so enough so that customers believe that it's going to be there, investors believe it's going to be there. And that's a change over what we had just even a few years ago.
So what we do then is from the cost of our manufacturing plus returns we need, we take and look at the carbon value and we share that with a customer. And that brings that cost to their gate, their plant, their facility down to be near or not too far away from the petroleum based product. And it gives us enough money to make for attractive returns. That's how the business system works. Then they can blend it at whatever level wherever they want because they usually have to do something to account for their carbon to reduce their obligated parties frequently.
Speaker 5
Okay. Thanks for that. And just another question on Praj. Any update there, where things at and it's been the work in a long time partner of yours, where do things stand?
Speaker 2
We're plugging along. We're going to get it done. I can see it and taste it. It's a matter of getting it done. It's going to be interesting.
It will surprise people what we're doing. And it's good because India is a place with a tremendous amount of agricultural resource. You don't think of it that way, but it does. People don't think of it, but it does. They also have no oil.
So as a strategic thing for India and the country, having the ability to make renewable resource based hydrocarbons is a good thing. And I'll be able to talk more about that soon.
Speaker 5
Understood. And just my last question is back to the airlines. Obviously, under quite a bit of duress, I mean, have you and I haven't seen anything out of the marketplace and anything specific, but have they backed off of those objectives that they set out, I believe, for 2025 or sort of changed their posturing as you see it out there in regards to emissions targets and carbon goals?
Speaker 2
You know what, they're definitely discussing them and change talking about it. They aren't going be able get away from it though because these companies could bail out money. There's going to be pre requirements, particularly in Europe. And so and then I don't think at a there's a real fundamentally interesting thing going on. And that is, I think we've crossed the tipping point where shareholders at large you can't get away from greenhouse gases, you got to do something about it.
You can't do business as usual and pull up the earth as usual. And people have realized or starting to realize and companies are being held accountable for their greenhouse gas emissions, even with activists, shareholder activists. And it isn't just the airline companies, it's the customers of the airline companies who are held accountable. And so there's this movement afoot that's pretty big. And I think that's probably what drives some of the behavior of airlines.
And so while I think that the airlines are going try to find a way to buy themselves more time and after twenty twenty, it's been so bad for them. I can certainly understand it. It makes sense. As things come back, a, there would be practical products like ours that should give them fuels that are in the right price hunt so that they can get it done. And that wasn't available before.
So that's part of the story. You have to have an alternative to turn two. But I think, the pressure will continue to increase because just imagine, it's what I said before, we're planning on burning all these fossil fuels for the next fifty years. And even with bringing on electric vehicles, there's still huge amounts. And so I can say with confidence that we're going to see significant increases in greenhouse gases, and that's going to cause additional pressure to occur.
So it's a megatrend. It isn't going to go away.
Speaker 5
All right. Thanks, Pat. I'll take the rest of my questions up direct with you. Thank you.
Speaker 2
Thanks, Ben.
Speaker 0
Thank you. And our next question comes from the line of Poe Fratt with Noble Capital Markets.
Speaker 6
Good afternoon, Pat. Hey, Paul. Could you talk about the project financing, whether you've changed the total amount that you're looking for. I think previously, you talked about potentially project financing in the $700,000,000 range. And is
Speaker 2
that still Yes. And that's still Yes. So the way to think of that is it's about yes, in that range. And that's a fully baked, fully loaded, fully packed on, fully everything delivered project basis. So that's as compared to if I had the balance sheet and was just spending the money myself, I'd save a lot of money, right?
But because you have to do all the reserves and all the other stuff with it. And so it's a typical project finance type of a situation. And the way it works is that you do 20% or 30% equity, 70% debt. And it looks like we have good opportunities there. And then we wind up with a retained interest.
We also get paid the development fees, the licensing fees, etcetera. So there's pretty good cash flow coming out of those projects towards Gevo, and makes for a profit. We would expect it to make us a profitable company. And so it's a it looks like it could work because it gives these attractive returns for people who like big infrastructure.
Speaker 6
And then looking at your next set of commercial agreements, whether it's on the renewable gasoline or the licensing agreement or even you talked about Praj, are any of these potential agreements going to generate any cash, when they're signed? Or is everything on the comp still?
Speaker 2
No, no. It's always with the delivery. So the we have some contracts, of course, already that as we make product at our out of our sales we plant, they do continue. But we got to get to larger quantities. And so these are these take or pay contracts, the way they're set up is that the companies are promising something on their balance sheet.
If we make it, they're buying it. That's that kind of an approach that we're taking. And there's nuances and flavors, but that's in essence the basic concept underneath. And so in the question of are they putting anything up? Yes, they're putting up the most important thing of all is de risking for an investor that there'll be someone on the other end if the plant gets built.
Speaker 6
Okay, great. And then could you do a cash walk on as a matter, ended the quarter with about $6,300,000 of cash. You gave an end of the July number of 21.4 that implies that at least from what I can tell that you might not have burned much cash in July. Is that fair? Or can you just sort of give us an idea of sort of where you stand right now from a cash Yes.
Burn standpoint, I
Speaker 2
To do what we're doing right today, we're in that range of about $1,000,000 a month or so. And it can go up, it might be 1,000,000 point dollars but we don't have when we're producing ethanol, there is like automatically a $500,000 extra hit, so we're $1,500,000 And then if the ethanol marched to really bad, it'd be higher. So we saved money by not producing ethanol. And we have project related expenses that we'll have to spend eventually, but we'll time those as we get better clarity on the timing of the projects and when people pay us back. So it's a we're doing a balancing act game right now Executing the business, executing the plans, executing getting more contracts, bringing home, getting the financial getting the financial projects baked and all that.
Speaker 6
Great. And then, when you I should have asked before, but on the project financing, I think previously you talked about a financial close in the first quarter of twenty twenty one. Is that still a target? Or do you think that might
Speaker 2
that still a target? I think it's yes, like if in my wildest dream target, given the way things have gone slower with the COVID stuff, but I think it's midyear next year, mid to third maybe third quarter, it's a something like that is what I would say. But I think that I don't have great line of sight to it until we have the parties pinned down and how exactly what they're willing to do, how they're going to do acceptable to us and we're in the midst of those discussions.
Speaker 6
Okay. And then can we just talk about your current shares outstanding and just whether I'm looking at this the right way. At the end of the quarter, you had $15,500,000 You issued $30,000,000 in the equity offering to raise 18 gross. And then you have the debt conversion into $2,000,000 goes into 4,200,000.0 common shares. Anything else I'm missing as far as your current shares outstanding should be close to what $50,000,000 right now?
Speaker 2
Yes, it's in that range. Carolyn, They
Speaker 3
are $53,800,000
Speaker 6
There you go. Carolyn, dollars 53,800,000.0 as of today? Correct. And does that mean that any of the warrants have been exercised? Or does that include I guess, could you give me an idea if any warrants have been exercised yet?
Speaker 3
None of the A warrants have been exercised.
Speaker 6
None. Okay. So it looks is there something I'm missing as far as if I go 15.5% plus 30% plus 4.2530.8%, so a lot higher than that. Is there another component that
Speaker 3
We had some restricted stock issuances inside business.
Speaker 6
Okay, great. And then, I noticed that you got SBA loans of about $1,000,000 Are those can you just describe what those loans are? And if any of them or potentially forgivable or outright grants?
Speaker 3
They are part of that PPP loan process. They are forgivable and we're going through the calculations currently to determine how much of it can be forgiven, and then we will apply for those forgivenesses along the way. We've got until November to get it done.
Speaker 6
Okay, great. Thank you so much.
Speaker 2
You bet.
Speaker 0
Thank you. And our next question comes from the line of Sean Severson with Water Tower Research.
Speaker 5
Hi, thanks. I just had a quick follow-up on Citi. I know you said things are progressing there, but can you help me understand what that means? I mean, how do you quantify, I guess, or and qualify the interest in this as you've been in the process now for a while? And is there any particular pushbacks or anything or things that I really liked about it?
I'm trying to understand how the pipeline looks and how you judge the progress of it.
Speaker 2
Yes. So good question. Yes, that's we ask ourselves the same thing all the time is how do you know we're making progress? So when we started off on this, you wind up putting together a really detailed management deck. It's like a confidential memorandum, but it's in the form of a PowerPoint presentation.
What we're doing is unusual in that we're doing this renewable gasoline, it's jet fuel, it's made from carbohydrates and technology has been scaled up. So we're a little different beast than what most people have seen before because normally they think right away, oh, ethanol or biodiesel or renewable diesel, we aren't any of those things. We're something that's a higher performing product and economical and it gives good returns and all the rest. And so it saw and it's done a sustainable way that can get to extremely low or even negative greenhouse gas course, which is astounding. That's not in the whole gallon is dead through emissions.
That's not a concept people heard before. And so what Citi has done is gone through the process of they sent a teaser out to a bunch of people, followed up with them, had like half hour discussions, maybe longer with them and screen them all and then found people who want to learn more, then screen them again. And then we bring them in for management meetings. We've had now lots of management meetings. So it's in way more than a So 16.
It's a split between, call it, two thirds financially oriented people who invest in big projects like this, the rest are strategics. And strategics would be people interested in investing in the business or in the fuels business or whatever, they're already players there. And so it's interesting. And the amount of time that these meetings takes with them to do the management presentation is a couple of hours of the top management. And then it's also following up and other discussions.
And so the time and attention that we're getting, having is really good. I mean, it's really quite impressive. So we'll see. It's a the time everybody's waiting to see a little bit, I think, on are we getting the second wave of COVID? If so, I think that people were more robust prior to the July 4.
And after the July 4, everyone's going, woah, wait a second here, is the world changing or is it stabling? What's going on? So all that stuff is in the background happening, but yes, people are still working on And we've got a lot of interest. So it looks like it's good. And it is what we set out to do so far.
So it's meeting those kind of milestones that we had set up of having this kind of mix, this kind of numbers to get to where we want to be. So we just got to go through it. And the question will be that we'll have to sort out is how will they actually want to do this? So if someone is interested and they want to step up and put money in, how will that equity deal be How would it exactly work? And of course, in an idea where we have multiple people involved so that we can make sure that we have options.
Speaker 5
All right. Thanks, Pat.
Speaker 0
Thank you. I would now like to turn the conference back over to Director and CEO, Pat Ruber, for closing remarks.
Speaker 2
Thank you all for joining us, and I appreciate your support. I look forward to the progress we're going to make. Keep an eye out for these announcements. Thank you.
Speaker 0
Ladies and gentlemen, this concludes today's conference call. Thank you for participating, and you may now disconnect.
