Hydreight Technologies Inc. (NURS) Earnings Call Transcript & Summary

We're going to give it a few moments while we let everyone join as I see some people in the wait room, and we have some time before we do begin. Just a reminder that this webinar will be recorded and will be sent shortly after. We'll try and get it out to everyone. So if you do have to leave, not to worry. And we are focusing this webinar on that Perfect Scripts deal that we just announced. So we'll explain that, what it means to the company, how it fits our vision and where we're headed with it. So we'll just give it a few moments before we begin. As I wait for people to join. And just also a reminder, please be advised that today's presentation may also contain forward-looking statements within the meaning of applicable Canadian securities law. The statements are based on current expectations, estimates, projections and assumptions and are subject to significant risks and uncertainties. We do urge everyone to review the forward-looking statements and our disclaimers as we do not guarantee the future performance and actual results may differ materially due to various known and unknown risk factors and uncertainties. So please take a second to review our forward-looking statements as well you can also find on SEDAR too. So we'll give it a few moments while we let everybody join here before we begin. [Operator Instructions] And we will try our best to get to as many as we can. So I'll just give it a few moments before we begin. So just bear with us. If you can just put a thumbs up in the chat, I just want to make sure that the audio is working, that would be great. Perfect. Thank you so much. Thanks, everyone. And for everyone just joining now, we're just going to give it just a few moments before we begin as we see some other people in the wait room, and we'll begin just quarter past here. I'll just give about another half a minute or so. Before we do begin, for everyone just joining us, thank you so much for joining Hydreight Technologies Investor Webinar. We're excited to have you all here today to go over the Perfect Scripts deal. And please, just a reminder, take a look at our forward-looking statements and make sure you do read those carefully before we do begin. Perfect. I think we will begin. Anyone else who is joining, they can always join. So welcome, everyone, to Hydreight Technologies Investor Webinar. We will be recording this webinar. So if you do have to leave for any reason, not to worry, we'll try and get this out to you as soon as we can. [Operator Instructions] We'll try to get to as many questions as we can within the next 45 minutes here that we do have with you. If by any chance we don't get to your questions, feel free to send them via e-mail to us at [email protected], and we can also address them there. I'll pass it off to our CEO, Shane Madden, to begin.

Thank you, Abbey. Thanks, everybody, for joining. Excited to go over the recent transaction and how it ties into our overall vision and road map and journey as a company. So I think just to give an overview, I know we have some new shareholders on here as well. So I will touch on just some overview comments at the start. But the impact of this partial acquisition partnership transaction, I think, is much wider reaching than the transaction itself. So we're going to go over some core areas that this has an effect on and go from there. So I think everybody -- mostly everybody knows that the company's goal so far has been to build a platform that is addressing 3 core areas of the U.S. health care system, a $5 trillion-plus spend every year, of which you've heard me say many times, 90% of this is preventable. So there's quite a movement into these 3 areas, mobile health and wellness. Of which we've created our nurse network, which gets colloquially known as the Uber for nurses. We have thousands of nurses across all 50 states offering services from IV therapy [indiscernible] plus to general wellness checks, lab draws, et cetera. Our second vertical is the nontraditional doctor's office. So basically, any health and wellness facility that is providing care, but isn't your traditional doctor's office in the United States, there's one on every corner, encompasses a wide range. There's approximately 150,000 physical bricks and mortars that would not fall under your traditional doctor's office in the United States, and it's growing every year. And then the third vertical, which is obviously very exciting, we've created -- we've leveraged our structure, which I'll get into in a little bit here, to offer a platform, which is essentially a Shopify for health care or at least it gets called that it's much wider ranging than that to solve a lot of problems in the direct-to-consumer space. So it's a B2B2C model where essentially we're able to solve problems that are quite complex from a state level across multiple areas of health care from medicine to nursing to pharmacy to allow businesses to expand, to grow, to stay in business in some cases. And our goal there is to have thousands and thousands of businesses as opposed to being just another competitor, another company in the direct-to-consumer space. So that's the kind of high level of what the Hydreight platform offers. Now, this vertical integration, this strategic acquisition here basically gives us a modicum of control, so strategic control, risk management and obviously, market power because all 3 verticals that I just described run off of the pharmacy network, whether that's the B or the A side, which I'll go into more detail here in a second. But basically, that is the supply chain for all 3 verticals. One of the moats here for our platform, as I go on here just into our structure for any new shareholders, one of the moats of our platform is in 30 of the 50 states, there is a corporate practice of medicine it's exactly as it sounds. It's the prevention of corporations being involved in the practice of medicine. So unless you have a structure like ours and a wide-ranging scalable structure, you cannot be in this space. So there's many things to consider within offering a medical service. Again, whether it's a nurse in the mobile setting, whether it's a bricks and mortar trying to stay compliant with state laws or whether it's a platform offering virtual care and a direct-to-consumer self-administered product. There is wide-ranging legalities here in each state. So the pharmacy side of it is incredibly complex. So different states have different laws even for the same product, the same treatment how it's procured, how it is stored, how it is administered, who can do it, who cannot do it? Does a doctor need to have a prescription prior, all of those things. So it's incredibly complex from a structural perspective. What we've built is a platform that essentially takes all of that away. We are basically able to do business to business. And then obviously, the business focuses on the clients. So we are the medical company behind it all. So high level, again, we're a 50-state medical company that has layers of medical directors, physicians and then our tech sits on top of that in 3 different areas that we've identified and leveraged ourselves to be able to capture this $5 trillion market. We were first movers in the first vertical. We are first movers in the third vertical, and we offer an end-to-end solution in the second vertical, which is the bricks and mortar unlike any other. So I'm going to go into some of the key differences for the 503A and 503B because, again, I know the U.S. health care system is quite complex and not everybody is going to be an expert on it. So 503B is essentially a compound facility. They make bulk products. It is not specific to a prescription, and they supply facilities. So your pharmacies, your hospitals, your medical facilities, all get supplied by a B in some fashion, different compliance laws, et cetera, to where you can make something in a milk. 503A then focuses mainly on the patient specific. So essentially, that product is for a person with their prescription. And our third vertical, which is, of course, incredibly scalable due to its structure from all of the products on there, all of the treatments on there are recurring medications in most cases. They're patient-specific and they're self-administered. So being able to actually control the product line, being able to expand your product line in a partnership ownership perspective, not a vendor relationship of any kind is an incredible strategic advantage. So this acquisition on the A side is directly related to our third and most scalable from a revenue generation perspective. So in that regard, it's extremely exciting. We will go into a little bit more detail regarding the B aspect of all of this transaction shortly. But I'd like to pass it to Vahid just to go over some market oversight and the deal itself. we'll circle back on some of the B stuff.

Thank you, Shane. Thanks again, everyone, for joining us in this webinar. Before we get into the details of the deal that we've been working on for such a long time, actually, this article came out right in the last few stage of our negotiation, which didn't really help with our negotiation because added more value to the compound pharmacy. But July 9, Forbes issued an article, which we left the link there as well that how the compound pharmacies is becoming the next big market. They address that from a few different angles that if you add them up and add the structure that we have created in the Hydreight in addition to these pharmacies, you can define the real value of our company by having our own pharmacy. So they've been talking about the drug shortages. Now we see there are many branded pharma companies that they have different patents. But because of the shortages, now they're dealing with the demand of the patients. And FDA is moving toward the way to open up the market for these compound pharmacies that not only they're going to add value with the distribution, but also it's going to be the pricing. The pricing for the compound pharmacy is a lot cheaper than the branded pharma companies. Then they started looking at the size of the market. In 2024, based on this article at Forbes, the market value -- the market size for compound pharmacy is about $6.3 billion. But they're seeing that, that is going to go to $10.7 billion by 2033. And the main reason is, one, drug shortage; two, telemedicine. But in order to have the telemedicine, you need to have a proper structure from technology, from the legal structure, from the flow of the service, which, again, that's what we're doing right now across the board. They're talking about the consumers' demand for personalized drugs. When you go on the branded, the dosage is the same for everyone. You're going to get the same thing that the other person is getting it. But when you go on the compound, you get the dosage that is based on your need as -- based on, again, different factors. They're talking about the structure deficiencies that you see it in the pharmacies in general. Earlier this year, there was another article that how CVS is investing $20 billion to create infrastructure to be able to have access to the patient directly through the structure of the technology, legal structure, everything that we've built in the last few years. Then the other component for the compound pharmacy was how patients' behavior has been changing and going from the brick-and-mortar visits to the full care platforms that they can see the doctors, they can see the nurses, they can have access to everything by sitting on their computers. And lastly was the longevity play. Now especially in the United States, we see the whole health care is going toward the preventative rather than being reactive and just dealing with that after getting sick. So what basically Forbes was suggesting is the compound pharmacy is becoming the new pharma giants. It's going to replace them soon. And in order for these compound pharmacies to be able to be at their maximum capacity and maximum production, they need to have all the other pieces, including technology, legal structure, doctor network and more importantly, the flow for all across the board from the patients all the way to health care professionals, and that's what we've created in the Hydreight. Now before I get into the details for our deal, let's talk about the Perfect Scripts. What's Perfect Scripts? Perfect Scripts is a parent company of 3 companies. They have PerfectRx, they have Perfection Rx and they have the PerfectRx LLC. From being owner of the Perfect Scripts as a parent company, number one, we're going to have access to -- we're going to be a shareholder and co-owner of a 503A retail dispensing pharmacy. They have one of the very few that they have 50 state licenses. So they can sell, they can send medications to 50 states patients. Now when we have the 503B, in order to get access to the patient, 503 should send it to a 503A to be able to send it to the patient. So this is the bridge for us to get anything we want to the door. So their current capacity is about 150,000 orders a day that they can produce. We're working with them to expand their offering with the new warehouses. Now they also took over another platform, which is the automated prescription software that is into the brick-and-mortars. So as part of this deal, we also have access to that. Now that is going to go hand-in-hand with our vision that we're about to introduce the POS for the brick-and-mortars that we're going to make the POS fully integrated with their software and probably make it free of charge and start making money from the payment processing with them. So this partnership ownership relationship is very key for us from many different angles and getting to the right 503A with the right people, that's the most important part of it. Now let's talk about the deal. The deal that we formed with them right off the bat, obviously, we're in the binding LOI stage. We'll talk about that what's left to get to the definitive. Right off the bat, we're going to get 5% of the Perfect Scripts that has -- is a parent company of those 3 companies, including their software company. Hydreight has a right to go to the 40% at any given time. There is a maximum percentage that ownership that we can acquire per year is going to be based on the third-party valuator that we're going to go with, and we have options to do it cash or stock. We wanted to do stock-based transaction with them at $2.30 because the people behind Perfect Scripts, they align with our direction for the company. They want to be an owner of the Hydreight as well. So now it is in our benefit, both companies work hand-in-hand to bring as many orders, as many products into the market together because if we win, they'll win. If they'll win, we win. So they're going to -- we're going to have -- we're going to issue 2.250 -- about over 2.2 million shares at $2.30. There are restriction on those shares, even there are restriction on selling them per day, which is can go over 5% of our daily volume. And they were absolutely okay with that because their long term -- their vision with the Hydreight is long term. Now from the binding LOI to definitive, just take a few steps back. We had this vision to acquire or start a 503A and 503B pharmacy. This is, I think, third or fourth deal that we identified, we started doing due diligence. We started working with them. But because we wanted to make sure we make the right move that is in the benefit of our shareholders, our company, our customers, we do our best to the best of our knowledge to do it with the right people. The last deal we had to walk away from them for many different reasons that they didn't pass the full due diligence side of the deal. Right now, we did the due diligence in 2 different parts. The first part, which is already done is from the technical perspective. Our doctor of the pharmacies, our medical legal team and our medical team, they did a full due diligence on them, on their background, FDA, anything licenses that they passed over the 50 states. Then we got into the deal. Now from the binding LOI, there are 3 closing conditions in our favor in a way that we have to be satisfied with those 3 to close this deal. While we're working with on the definitive, we're doing another due diligence. This time is from legal perspective in the United States that has started. We're close to be done with that. We're working with them to do a restructuring in a way that right now, the same owners are the owner of all the 3 entities that they have. They're moving them all on the Perfect Scripts. So the Perfect Scripts owns all their entities. And then we become the partial owner of the parent company. That part is done as of yesterday. And then our financial team is also reviewing their financial statements for another layer for the due diligence that we want to make sure, again, we make the best decision as possible and then close the deal. The deal, we put a 45 days kind of like a period to close. Most probably is going to be closed a lot sooner than 45 days with the pace that we're having right now because we also started the 503B side of the conversation that we have with them and the agreement we have. Shane will talk about that shortly of where we are with the 503B. This deal is -- we're getting the 503A ready to go, but 503B has started it as well that we're trying to go live in Q1 next year. Now I'll pass it to Shane to talk more about like the 503B side of this relationship, where we are. Again, there are many plans in place. There are -- many actions has been made. We're moving toward that, but there are going to be some forward-looking statement based on the -- what we've seen so far and what we've experienced and what we're planning to do. Shane, please take over.

Thank you, Vahid. Yes. As I said at the very start, this is -- the impact of this partnership is far greater and wider reaching than the size of the transaction itself. So this isn't really one deal. This is multiple deals in one. So obviously, the first part is the 503A. As I've gone into our infrastructure and the 3 verticals are all fed by pharmaceuticals. That's the end product in all 3 verticals. Depending on which vertical we're talking, whether it's mobile health care, whether it's bricks-and-mortar or whether it's the direct-to-consumer, depends on exactly how it works. But generally, it's 503B either directly to a bricks and mortar or 503B through a 503A to a direct-to-consumer. So all roads lead back to a 503B. 503A offers incredible strategic control, risk management, et cetera. But we selected this deal specifically after a number of potentials over the last 12, 18 months. We chose this deal specifically because of the pre-existing relationship with a B. We had a number of in-person meetings as a group, and we put a strategic plan together to have Part A, which is part of on the A. And then obviously, as a group, create a B, which has already started, which will be production ready by end of Q1, start of Q2 next year, but end of Q1 is our goal. More details to come. I can't give too much details on that. What that will create for this company and how impactful this deal is, might not hit home for a lot of people. And hopefully, we're doing a reasonably good job on this webinar for highlighting the impact. We have created a platform that, as I said, is addressing this $5 trillion market. Through this transaction and the second one, which is already in motion, we will control essentially the supply chain for all of those. However, there's a wider-ranging thing to think about. Once you control a B, you now can produce pharmaceuticals -- sorry, you can supply pharmacies, hospitals, other medical facilities. Again, this can be used as a tool to circle back to our verticals in one capacity, but also just as a generator also. So the wider ranging impact of these transactions is really hard to quantify at this time. You'll see it in many ways. You'll see it in control, expansion in product lines, expansion in profit margins. But it really is something that we're very, very proud of and super excited about. Just some of the things, just to put maybe a name on them, if we want to get on to some of the benefits that I think will be kind of more directly seen. Vahid, if you'd like to talk about those?

Absolutely. So kind of just to summarize what Shane has been addressing from the structure perspective. Right now, now we have a national pharmacy infrastructure over 50 states that basically anything that we want to get in the hands of the consumers, direct to consumers, now we have a bridge to get to them. We have full control and we can scale this. Already -- it's fully integrated to their system from our system. It's already fully integrated to our VSDHOne and we mentioned earlier, it's a module base right now. People doesn't have to use all the components, but they have to use the pharmacy side of it. And we're going to use their technology, that technology already being used in brick-and-mortars. We're going to leverage that to push our POS into those brick-and-mortars and also try to get their orders through us as well. Now as I mentioned in earlier slides around Forbes, now by having a pharmacy legal structure on the platform, that's the flywheel that we have. That's basically we have -- we're trying to have the control of our destiny in our hand rather than have the third-party companies. We can expand our competitive moat because of the complexity of the pharmacy world in the United States. And again, because now we see -- as we see that the compound pharmacy becoming more valuable, it is harder and harder to get your hands on that because there is very limited number of the licenses out there that you can get your hands on or partner with. Obviously, from revenue share and margin uplifting, we'll send -- within the next few weeks, we're going to send an update on the VSDHOne. But in the high level, the power of this partnership has already been reflected in our numbers. We have been talking about the 1.3 million orders as our goal for 2025. And if you look at our graph, we have some internal range for the orders for us to lead us to 1.3 million. We were expecting to get about 7,000 to 10,000 orders in June. We're ranging about 35,000 to 70,000 orders in month of July, which June, we meet the numbers. In July, it's ramping up. We're hitting 2,000 orders a day now. And we're working on that to push it even higher and higher to get -- again, to start experiencing 4,000, 5,000 orders by beginning of August per day. Now when we look at -- as we shared in the previous webinar, our margin, because we had to go after larger businesses, we had to bring it down. So when we started it, our margin was in low teens. Now we're seeing by mid-July, we're getting to mid- and high teens percentages. And our goal is in August to go to the 20s with all these orders that is coming in. So having such a part within the full equation from the pharmacy perspective is going to make it a lot easier from a scalability of the number of orders that we're getting. And again, we're limiting our orders to make sure the ramp-up being successfully by having overnight shipments by communicate tracking within 15 minutes, 20 minutes, 30 minutes to the end users. These are some of the details that we're trying to do. Now we're going to send a full update in the form of the press release on the VSDHOne numbers and all those details within the next few weeks. But that's the reason that we're sharing these numbers right now is for you to understand the importance of this relationship at this time. Now this is going to be a great partner for M&I robot because as part of affinity, we're going to have some terms that if anybody wants to acquire Hydreight at the end at the higher valuation, they need to have their own pharmacy, they can -- there are some mechanism that they can also get the pharmacy as well. Now getting into the 503B is another advantage for us that Shane mentioned that. And at the end, again, is the vertical integration is going to be a higher multiple for us. If you think about it, we're a SaaS company. We have pharmacy in our control. We are a medical company that we have all the legal structure. And we also have the payment processing licenses to be an agent. We just haven't used them yet. By adding the last piece, which is the POS, that is going to be the big thing that we have. So this is kind of -- again, the purpose of this webinar was focusing on the deal. Again, we're going to have another webinar probably when we close the deal, we invite the PerfectRx team to have conversations, but we got so many questions from our shareholders that, again, we're very appreciative for your support, your feedback along the way that, again, we're trying to have heads down focusing on our numbers to -- again, our goal hasn't changed. 1.3 million orders with the proper margin to be profitable. But along this way, there are so many things that needs to be done from an operation perspective to make sure we're going to pass that. Now Shane, if I missed anything, please feel free to add. Otherwise, we're going to answer some of the questions, and then we'll go from there.

No, that was fantastic. I'd love to hear some questions.

There are so many questions. And again, just to be respectful to your question, we see a question about like huge volume and all that. But I'd rather to focus on this webinar solely on this Perfect Scripts is not that we're ignoring the questions. And feel free to e-mail us at [email protected]. We always would love to hear from you and answer your questions. So is there an update on the numbers? So I provided some numbers on the VSDHOne, but we're going to send a news release in the next, I would say, probably 2 or 3 weeks with full details on that. Just again, we hit our numbers for June that we wanted to hit, which was between 7,000 to 10,000 product orders. In July, on the chart is roughly about 40,000, but a range internally for us is about 35,000 to 70,000 that we're passing that. And again, we have experienced 2,000-plus orders and it's continue going up. There are things that, again, like any other growing business, as we get to specific milestones, we need to address, we need to get on it. We need to be ready for scaling, but things are moving forward toward the right direction. You've discussed about the Hydreight owns medical data involved in the platform. Do you expect somehow? Again, we'll talk about all these at a later webinar. But yes, we have planned to use our data through AI for monetizing them through our services. And that's something that we're working on, but we'll add more color to it when we have that as one of our priorities. When you talk about the first 2 verticals, does that include nurses selling semaglutide to the patient? Is the growth in the first 2 verticals due to more nurses or more sales per nurses? The answer is yes. They're selling semaglutide to the patients, and they can do a direct-to-consumer or they can actually go and do it for them. And both verticals are growing. We -- in our projections, we're projecting 27.5% for our first 2 verticals, which in the Q1, we were 34% growth for the first 2 verticals. Is there any current bottlenecks that is holding the company back from succeeding? It's a very loaded question. The short answer is a company that is going 30%, 40% year-over-year growth and aiming to have the growth that we're aiming to have to 1.3 million orders. Obviously, there are challenges every day. Obviously, there are things that we need to look at it on an hourly basis. I don't use it as a bottleneck, but those are the challenges that is ensuring that we're on the right track, and we're doing the right things to get to our numbers. Is your company on track to get 1.3 million orders for the third vertical? As I mentioned, we haven't seen any evidence to change that. We are beating our own internal matrix. But again, we'll communicate that in more details in the next 2, 3 weeks. How will the partnership with Perfect Scripts affect the earnings? Is there an improved margin? Again, I addressed that how it has been already impacting the margins. Can you discuss any plans or lock up or restrict sales of the VSD shares mentioned previously? Again, if you send these questions through e-mail, we'll be more than happy to answer it. I just want to focus on -- we're not ignoring your question. We just want to make sure to answer the question that is related to the transaction. How much do you need to invest in the 503B and where the funds come from? Great question. We're looking at those numbers. It's a lot lower than the numbers that we anticipated at the beginning. We're meeting again with all the parties with our partners of 503A and 503B next week to get to some details into that. But the company has a great cash flow. We -- and again, so far, we don't need to see any external capital. Again, it all depends on that. Just to give you a perspective of that, the 503 -- when you have the 503B, when it gets to the full production, you're going to see again, I don't want -- don't quote me on that is forward-looking statement. But if you get to the full capacity, you're going to see millions of -- million dollars of profit per month when you get to that. So getting to that -- those numbers and feeding that is not going to be a hard thing even if you look at it from the investment that is required. But we'll share more when we know more. But as Shane mentioned, that dose has already started in July to setting up the 503B, and we're going through the steps. We're meeting our partners next week.

Just to add one thing to that because I think it's a very -- it's an excellent question and especially with the impact that the B is going to have in collaboration with the A, I think we should just add a few details there. One of the reasons I love and Vahid and I love this entire transaction discussion all the way to an actual partnership is there's costs that we can absorb through the collaboration. So the B that we're talking to, this would be a second -- so it's an already established successful B that has a successful mechanism. The A that obviously has buildings, has structure. So there's a lot of costs that through this collaboration, we can wipe out. We can merge a bunch of things and keep it very cost effective. So it's one of the other reasons that we really, really like this overall transaction. As I said, it's really 2 transactions in 1. And we're making it incredibly cost effective and we really like the mechanisms, the way they're looking at it, and we can provide more details shortly.

Thank you, Shane. Maybe I missed this as a last question. Again, there are a few questions that is not related to this. We're not ignoring the question. Please e-mail us, we'll be more than happy to answer. Which drugs will be made in 503B will it make GLP-1 as it's not in the shortage list anymore or it's allowed to be in the 503B?

So B is very wide ranging. Obviously, the Bs right now from a production perspective, it's quite a gray area. It's off the shortage list, so they're not producing. There's a lot of talks about putting it back on the shortage list, and there's also talks about separating the compounding side in the U.S. completely from the insurance side, so kind of leave it. But to be very specific to the questions, a lot of the bricks and mortar, B12s, all of the Bs, the glutathione, all of the vitamins, all of the drugs that hospitals would use. But specific to our verticals, the bricks and mortars and the nurses, basically, all of that is essentially B product that then gets turned into -- the patient specific is on the C. So the B feeds the A, the A turns it into a patient-specific product in most cases, and it goes out there. So the whole gambit of all 3 verticals is covered between that relationship. The As right now due to prescription, so to get back to the GLP-1 question specifically, sure, the Bs, it's off shortage. But an A can create a GLP-1 if the prescription need is there, and the FDA have come out and said that as well. So again, there's 2 layers to this. You can control it at the A level if the prescription need is there. And there's obviously talks about it going back on the shortage list or there being a deal in general on the B side.

Thank you, Shane. And last one, there are a few questions around the margins. The margins, again, we talked about this in the last few webinars. Right now, our focus is to get the orders and stay profitable. Now in order to do that, in order to get some large clients that they have a few hundred thousand orders a month, we had to bring our prices down. And without having being a partner into a pharmacy, we wouldn't get to the prices that we are right now. Our goal is to get our margins to 20% to 30% and then by owning a piece of this pharmacy and the 503B go way above 20% to 30%. In the first 1.5 months of orders, we started it with a margin of low teens. In July, the orders picked up. Our margin picked up with this -- with the first step of this partnership and this ownership. We're in the high teens that we're getting. And we're on track for month of August, we get into the 20s and mid-20s to high 20s. But again, this is just the beginning of the way. Our main focus is getting these orders, getting to 2,000-plus orders a day, it's not something that we can take it lightly. And again, our goal is to continue pushing for that and experiencing even 3,000, 4,000, 5,000 orders a day. Obviously, there are some fluctuations that we see, but getting to that max on a daily basis and keeping the margin to this level, that's the future. We're in a long-term plan. It's not a -- we're not focusing on one thing, like just one step ahead of us. As you've seen with our moves that we're making, we're trying to see a few steps ahead and move toward those steps. So again, there's a 3 or 4 questions about the margins. I just wanted to answer. Now again, I appreciate you guys attending the webinar. I appreciate the time. I appreciate the support. I hope that we could answer your questions and add some color into this acquisition. Any questions, please feel free to e-mail us. We're going to send an update within the next few weeks on the VSDHOne numbers, and we'll add more details about this acquisition when it's -- when the definitive is signed because there are some details and terms that we're working on that, that I think will be very exciting for Hydreight and for the shareholders. But until signed, we can't really talk about those. Again, thank you so much for your time, and we appreciate your support.

Thank you.