TON Strategy Company (TONX) Earnings Call Transcript & Summary

Good afternoon and welcome to the Second Quarter 2020 Financial Results Conference Call for VERB Technology Company, Inc. Please be advised this call is being recorded at the company's request. On our call today are Rory J. Cutaia, CEO; and Jeff Clayborne, CFO. Before we begin, I would like to remind everyone that statements made during this conference call will include forward-looking statements under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, which involves risks and uncertainties that could cause actual results to differ materially. Forward-looking statements speak only as of the date they are made, except as required by law, as the underlying facts and circumstances may change. VERB Technology Company disclaims any obligation to update these forward-looking statements as well as those contained in the company's current and subsequent filings with the SEC. The company also notes that in addition to these results under generally accepted accounting principles or GAAP discussed on this call, the company will also present 2 non-GAAP measures as the supplemental measures of this performance, quarterly recurring subscription revenue, or QRR, and annual recurring revenue, or ARR. Although QRR and ARR are commonly used by companies in the SaaS space, neither is recognized measurement under GAAP and should not be considered as an alternative to the company's net income, income from operations or any other performance measure derived in accordance with GAAP or as an alternative to cash flow from the company's activities as a measure of liquidity. I would now like to turn the call over to Rory J. Cutaia, CEO. Rory, you may begin.

Thank you, and I thank everyone for joining us today for our 2020 second quarter financial results conference call. On today's call, we will bring everyone up to date on our progress over the past 3 months, a time that companies and investors alike has been fraught with uncertainty, uncertainty arising from the continuing and potentially long-lasting, if not permanent, effects of COVID-19 on business, investments and the economy at large as well as the uncertainty surrounding the ongoing social unrest, the upcoming election and the potential impact of these events on the capital markets. I'll discuss the measures we've implemented and the steps we've taken to mitigate that uncertainty for ourselves, our employees and certainly, for our investors. And some of those initiatives have allowed us to deliver the best quarter in the history of our company. Jeff Clayborne, our CFO, will provide a more detailed review of our financial results for this period. And at the end of the earnings call, we'll hold a Q&A session. So for those new to our company, we're a Software as a Service or SaaS applications platform developer. Our platform is comprised of a suite of sales enablement apps marketed on a subscription basis. Our application is available in both mobile and desktop versions or offered as a fully integrated suite as well as on a stand-alone basis. They include verbCRM, our customer relationship management application; verbLEARN, our learning management system application; and verbLIVE, our live broadcast interactive video webinar and livestream e-commerce application. Our suite of applications can be distinguished from other sales enablement products because they utilize our proprietary interactive video technology as the primary means of communication between sales and marketing professionals and their customers and prospects. Moreover, the proprietary data collection and analytics capabilities of our applications inform our users in real-time on their devices when and for how long prospects have watched a video, how many times they watched it and what they clicked on, which allows our users to focus their time and efforts on hot leads or interested prospects rather than on those that have not seen the video or otherwise expressed interest in the content. Our clients report that these capabilities provide for a much more efficient and effective sales process, resulting in increased sales conversion rates. We developed a proprietary patent-pending interactive video technology as well as several other patent-issued and patent-pending technology that serve as the unique foundation for all of our platform applications. As I've talked about over the past year, we've been focused on setting the team, building and shoring up the foundation upon which we are building piece by carefully and strategically built piece a world-class organization with global aspirations. In an effort to provide the kind of transparency, I believe, our shareholders deserve, not just our shareholders, who I consider our co-owners, but shareholders in any company, I've talked quite a bit about what we're building, what's coming, what we're working on and our evolving vision for this company. But in the I-need-it-now, immediate gratification, attention deficit disorder, put up or shut up social media mobile screen world, that has consumed our entire virtual existence, talk and talk alone doesn't move the needle. Results move the needle, measurable results. Execution moves the needle. So today, we're going to talk about execution and measurable results. The company, and for those of you that are shareholders, your company, is really hitting its stride. I'm proud to report that we had a record breaking quarter, even beating the preliminary guidance about our second quarter results that we released last month on July 13. To provide a complete picture of the business, I'm going to discuss and compare the GAAP-recognized quarterly recurring revenue reflected in our current 10-Q against prior periods. I'm going to share the number of new client contracts executed in the quarter. And then I'm going to share the annual recurring revenue we expect to recognize through those contracts. So starting with Q2 of 2019, which was the first full quarter we reported post-NASDAQ listing and the launch of our verbCRM app and continuing through Q2 of 2020, here's our quarter-over-quarter SaaS recurring revenue growth as recognized by GAAP and reflected in our filed financials. 2019 Q2 was $858,000. Q3 was $958,000. Q4 was $995,000. 2020 Q1 was $1,057,000. And Q2, our currently reported quarter, was $1,274,000. That's 5 consecutive quarters of SaaS revenue growth. Again, these numbers represent the GAAP-recognized SaaS revenue as reported on our financials as a component of our digital revenue. Comparing these results to last quarter, we have SaaS revenue in Q2 of $1,274,000, up almost 21% over Q1 and reflects growth of almost 49% over the same period last year; total digital revenue in Q2 of $1,680,000, up almost 16% over Q1; total nondigital revenue in Q2 of $972,000, up almost 9% over Q1. Total combined revenue in Q2 of $2,652,000 was up almost 13% over Q1. In Q2, we executed 20 new client contracts. That's almost double the 11 we signed in Q1. And if we go back a year ago, it's 5x the number we signed in the same period last year. The base value of those contracts is $983,000. That's growth of 65% over last quarter and 245% growth over the same period last year. I say base value because base value only represents the minimum monthly guarantee over the life of the contract. And during the upcoming months, and over the life of the contract, we expect the individual users will add additional services and features, such as verbLIVE, and corresponding revenue that is not yet reflected in these numbers. It also represents $573,000 of annual recurring revenue. That's growth of almost 92% over last quarter and 227% growth over the same period last year. And a couple of other notable data points. We're now at 1.49 million user downloads, up from 1.46 million as of June 30. And also, the investment community is beginning to take notice. We've recently added 1,741 investors in just 1 week. I've said this before, but it's worth repeating. The monthly recurring subscription component of the digital revenue, our SaaS revenue, is very high-margin business, with gross margins above 80%. And now it's the largest and fastest-growing component of our total revenue. This revenue also commands the highest market multiples to calculate market value for the business and the corresponding per share value. When we think of underlying business fundamentals, which, in our view, is the source of true market value, this is what we focus on. And this is what we believe value investors focus on. So with growth of our SaaS business up almost 49% over last year and almost 21% over last quarter alone, I'm proud to report that our value-creation initiatives are indeed producing measurable, quantifiable and now accelerating results. So now let's talk about what we're doing to drive that growth further and faster because, yes, that's impressive growth and certainly, a lot to be proud of, especially during a global pandemic. But we want hyper growth. We want to see this thing hit that tipping point, where the revenue just takes off and the share price follows. And as an investor, and look, I've invested $4 million of my own going in this, so like you, I want to know what we're doing to achieve that, right? So let's talk about verbLIVE. As we announced last quarter, we began the limited release of verbLIVE, a groundbreaking interactive video livestream, e-commerce and webinar platform. verbLIVE truly captures the value proposition of our entire company, delivering easy-to-use products that drive sales revenue by eliminating friction from the sales process. Essentially, verbLIVE is Zoom, but does something Zoom doesn't. It gives the host the amazing, almost magical ability to insert clickable buttons and product images on screen on which viewers can click right in the livestream broadcast to purchase your products and services. For those of you who have seen a demo of it, you know it's quite extraordinary and in the age of remote work and social distancing, when many stores are closed. And for those that are open, people are afraid to go in and shop, and browsing on Amazon is so 2010. We believe verbLIVE is a game changer. And that's just not me saying it. Many who have seen it get it. I'm not sure I could overstate what we believe is an enormous value-creation opportunity. So how do we intend to market it and monetize it? So first off, you've seen in the press release issued this morning about verbLIVE being available to Salesforce users in the Salesforce AppExchange marketplace under the Salesforce Partner Program. It will give every Salesforce user the ability to click on their contacts icon right in their Salesforce dashboard, and from the drop-down menu, they will see verbLIVE. They click on that, they launch their own verbLIVE livestream e-commerce session and invite people directly from their Salesforce contact list. Super cool, very easy and a very effective sales generation add-on tool for every Salesforce user. We're charging $24.99 per month per user, and we're going to work with Salesforce to develop a marketing campaign to promote it heavily within the Salesforce ecosystem. We've already got some new features for the Salesforce version in Q&A that we'll be releasing soon as well. So we expect that there will be a constant stream of new updates and features that we think users are going to love. As I said before, we're delivering on all of our promises, and we intend that Microsoft will be the next one we announce. So standby. But back to that hyper growth we all want. Let's talk about the low-hanging fruit. At last count, we have, I believe, 17 of our existing clients that have already signed up for verbLIVE during the prelaunch marketing. Combined, they represent a total addressable market of 465,350 users. So work through this analysis quickly. Our penetration rates among our existing customers vary, but on the low, low end, it's about 10%. So let's say we only get 46,000 users to subscribe and pay for verbLIVE. We're charging $9.99 to $14.99 per user per month for verbLIVE, depending on the features and the package for existing verbCRM users. So for this analysis, let's go with the low number of $9.99 per user per month. That means we have an existing total addressable market in dollars of approximately $4.6 million per month of recurring SaaS revenue, of which, applying low penetration rate of 10%, we believe we can capture approximately $460,000 of SaaS recurring revenue per month or approximately $5.5 million of annual recurring revenue. So let me provide some more color around the penetration rates. This is not like running the ads on social media to a large target audience and predicting or rather, crossing our fingers and hoping we get adoption. Many of these are people who already have our verbCRM app on their mobile device to whom we can send very targeted messages with video demos of what verbLIVE could do for their business. And our platform is already integrated into many of the back-office providers, making adoption quick and easy. Again, that may be the very realistic SaaS revenue potential from what we've already signed for verbLIVE among existing customers before releasing it broadly to the global market. So let me be clear here. This is a small part of our internal modeling. This is not to be interpreted by anyone as a guarantee of performance or results. This is a forward-looking statement. So don't go out and buy more shares based solely on this information. As you know, we encourage communication with our investors on a regular basis, and many are writing to me saying, release it to the full global market already. But as those of you who are familiar with massive product launches know, we need to make sure our projected usage models match our server capacity. And while this falls once again squarely in the province of a forward-looking statement, our current projected usage models forecast far greater numbers than the 10% penetration rates for our existing signed customers that we projected 6 months ago, a much greater number still when we add anticipated adoption rates from the as yet untapped market outside our existing business. So we are working diligently to ramp up capacity before a large launch to ensure that we don't face service outages from overloaded servers. The fact is no matter what we do, we may end up having server overloads anyway as it's difficult to predict the rate at which this thing could take off. But we have to do our best to be patient and thoughtful and cautious to make sure the users have the best experience as that is the recipe for exponential growth or rather the hyper growth that we're shooting for. As to other updates, our Japan operations are continuing to perform very well. In fact, I believe, we've launched another new client just this week. We're also making progress on our own app store ecosystem that I referenced in our last earnings call. In fact, we're about to release a bundled service offering, which includes a higher-priced version of our verbCRM app bundled with third-party tax app software for sales professionals. And VERB was recently added to the Russell Microcap Index as part of the 2020 Russell Index' annual reconstitution. So as you can tell, despite the COVID-19 global pandemic, the remote work environment we've been in for the past 6 months and all the social unrest and uncertainty in the world, we are still focused in executing at a furious pace. But that focus doesn't mean we live in a bubble without regard to what's happening in the world. We're living through very difficult times. The social issues are inescapable and can no longer be ignored. At VERB, our motto is inspire action. And we've decided to apply that not only to the sales tools that we provide, but also to ourselves. We believe every company should adopt and employ socially conscious programs, no matter how big or small, now more than ever. So that's how we inspire action in ourselves and in so doing, inspire action in others to do their part. All of us need to do our part. Don't get me wrong. I'm a capitalist through and through. And I'm not suggesting for a minute that companies forgo their profit mojo. Because the fact is, it's through those profits that we are then better able to assist those in need. And in that regard, we applaud NASDAQ for establishing and promoting their ESG Advisory Program. For those of you who aren't familiar with ESG scores, it stands for environmental, social and governance, and companies are now rated based upon how they stack up in each of those categories. And today, more and more investors are taking ESG scores into account when contemplating an investment. According to NASDAQ, ESG information is no less relevant or useful to an investor in assessing the financial prospects and operational performance of a company than information channeled through traditional accounting practices. In fact, 96% of NASDAQ-listed companies now report at least one ESG metric on an annual basis, and we intend to be among them. And I'm proud to announce the launch of Verb for Humanity earlier this year. We've been behind newer socially conscious initiatives, which you'll find on our new Verb for Humanity website that we expect to launch in the coming weeks. With regard to other events creating uncertainty in the world, well, the upcoming election and the potential post-election impact on the capital markets. We've all heard rumblings about the impact on the capital markets dependent upon which candidate is victorious on election day. And while we certainly don't profess to know, one way or the other, whether that's true, we do believe it was incumbent on us to insulate ourselves and our shareholders from any risk or uncertainty to the extent we could. As you know, we previously adopted a policy of only raising the capital we need for short, predictable periods so as to minimize the dilutive effect of new share issuances. In hindsight, I'm not so sure that policy has yielded the results that we desired. However, back in April and May, as we look forward to what our future capital needs and specifically, around the capital required for an intensive marketing campaign around verbLIVE, we were concerned that if we wait until we need the capital again, the markets may be closed or we may encounter other issues related to the overall economy that might make a capital raise difficult. So in order to eliminate that uncertainty and the potential damaging consequences of not having access to capital as and when we needed it, we decided to pursue a larger offering now in order to ensure that our current business plans were fully funded well into next year and potentially, beyond. That led us to conduct a public offering to raise $8 million to $10 million. But we wanted to raise capital through the issuance of straight common shares, no warrants, which many told us might be difficult to achieve. Well, as it turned out, the offering was extremely well-received. And not only did we raise the higher end of the offering of $10 million. But due to the demand from the investment community, we were able to upsize our offering by 15%. And together with the exercise of the overallotment by our underwriters, we were able to close on a total of $13.8 million, well more than we intended, leaving us extremely well-capitalized. That was closed several weeks ago on July 24, and you'll see that cash on our balance sheet in the subsequent events section of our current filing. I'll leave it to Jeff Clayborne to lay out the details of that transaction for you. Finally, before I turn you over to Jeff and in the spirit of transparency, we recently executed a letter of intent for another acquisition that will allow us to expand more rapidly into a desirable new business vertical for our products and services. Contracts are now out for review and when executed, potentially as soon as next week, we will disclose the full details for all of you in an SEC filing. If executed, as we anticipate, the transaction is expected to close next month. I would now like to turn the call over to Jeff Clayborne, our Chief Financial Officer, for a more detailed review of our financial results. Jeff?

Thank you, Rory, and good afternoon, everyone. I would like to review the financial highlights as included in our Form 10-Q filed today, August 14, for the quarterly period ending June 30, 2020. As Rory discussed, we have been focused on growing our SaaS recurring subscription revenue. Total SaaS revenue for Q2 totaled $1.3 million, an increase of almost 21% from the $1.1 million reported last quarter, and an increase of almost 49% from the $858,000 reported for the same period last year. Total digital revenue for Q2 totaled $1.7 million, an increase of almost 16% from the $1.5 million reported last quarter and an increase of almost 16% from the $1.5 million reported for the same period last year. On a pro forma basis, the total SaaS revenue for the first 6 months of 2020 totaled $2.3 million, an increase of almost 42% from the $1.6 million reported from the same period last year. On a pro forma basis, total digital for the first 6 months of 2020 totaled $3.1 million, an increase of almost 25% or $2.5 million reported from the same period last year. Looking at our operating expenses, we continue to add resources to our product team to support development of verbLIVE plus enhancements to verbCRM and to our core platform to facilitate native integrations with Salesforce, Microsoft, Adobe and other channel partners. Research and development for Q2 totaled $1.6 million, an increase of approximately 22% from the $1.3 million reported from the same period last year. On a pro forma basis, research and development for the first 6 months of 2020 totaled $2.9 million, an increase of 12% from the $2.6 million reported from the same period last year. We've also had increases to general and administrative expenses attributed to increased labor and stock compensation expense to support growth and increased facility costs at our corporate headquarters in Newport Beach, California. General and administrative expenses for Q2 totaled $4 million, an increase of approximately 24% from the $3.3 million reported in the same period last year. On a pro forma basis, general and administrative expenses for the first 6 months of 2020 totaled $7.5 million, an increase of approximately 16% from the $6.5 million reported in the same period last year. As of June 30, 2020, cash totaled $1.4 million, total assets were $28.4 million, total liabilities were $18.9 million, and total stockholders' equity was $9.5 million. We had a couple of notable changes to our balance sheet. We added $1.4 million in long-term debt, of which $1.2 million is a Paycheck Protection Program loan that we believe will be completely forgiven, that I'll discuss in further detail in a moment, plus $150,000 associated with an economic injury disaster loan payable over 30 years. We've had a couple of classification changes as $1.1 million of long-term related party debt and $521,000 deferred incentive compensation is now classified as current. As Rory mentioned earlier, we've also been incredibly focused on properly capitalizing the company to provide the necessary growth capital and to manage with social and economic uncertainty. Some of the financing initiatives that occurred in the first 6 months of 2020 and subsequent to June 30, 2020 includes the following. On February 5, 2020, we initiated a private placement for the sale and issuance of up to 5 million restricted shares of our common stock at a per share price of $1.20, which represented a 20% discount to the then current $1.50 closing price of our common stock on the day the offer was priced and is memorialized by executed subscription agreements. As a result of this private placement, a total of 4,237,833 shares of common stock were subscribed for and issued for net proceeds of $4.4 million after direct costs. On April 17, 2020, we received loan proceeds in the amount of $1.2 million on the Paycheck Protection Program or PPP. The PPP, established as part of the Coronavirus Aid, Relief, and Economic Security Act, provides for loans to qualifying businesses for amounts up to 2.5x the average monthly payroll expenses of the qualifying business. The loan and accrued interest are forgivable after the earlier of, one, 24 weeks after the loan disbursement date, and two, December 31, 2020, as long as the borrower uses the loans for eligible purposes, including payroll, benefits, rent utilities and maintains its payroll levels. To the extent any portion of the loan is not forgiven, it is payable over 2 years and an interest rate of 1%, with a deferral of payments for the first 6 months. We have used and will continue to use the proceeds solely for expenditures strictly in compliance with the terms of the PPP. On July 24, 2020, we closed our public offering and the company issued and sold 12,545,453 shares of common stock, which includes 1,636,363 shares of common stock sold pursuant to the exercise by the underwriters of an overallotment option for gross proceeds of $13.8 million. Our net proceeds totaled $12.3 million after deducting the underwriter discounts, commissions and operating expenses. As of today, there are 43,947,648 shares of our common stock issued and outstanding. Of the total number of common shares issued and outstanding, approximately 4.5 million shares or approximately 10% are owned or controlled by management and the Board of Directors. I would like to turn the call back over to the operator for Q&A. Operator?

[Operator Instructions] Our first questions come from the line of Jon Hickman of Ladenburg Thalmann.

Could you talk a little bit about the sales success over the last couple -- last month or so, and then as far as new accounts go, et cetera? And if you can, can you name names?

Hey, Jon. How you doing? Good to talk to you. Look, the company, as you could see over the past quarter, has continued to add clients that -- I think I'll use the word "furious" already. Furious is, I think, appropriate. We've added, let's see, I think we've gotten 1, 2, 3, 4, 5, 6, I think, just in the past couple of weeks. We're really doing very, very well right now. I think that the market has finally begun to understand what we do and what our value proposition is. And we're really -- we're doing incredibly well. And the sales team is doing a great, great job. We've beefed up the sales team. We've added a bunch of people. We've added people in the customer support side, customer success. Some of the names that are in that list that I just talked about are names that you would recognize, so they're their brand names. But without their permission, I would decline to name them right now. At some point, we'll get their consent, we'll put out press releases and be happy to share those names.

Okay. As far as your potential acquisition goes, could you -- is this technology you're buying? Or are you buying customers?

This is an operating business that has revenue and customers in a particular sector that we are very keen on and that we are very much looking forward to launching a combined product into that sector in the near term. So I'm -- this is something that, believe it or not, through this crazy pandemic, the capital raise, traveling to Asia for the one right before that, we've been working on, doing due diligence and negotiating the deal. So it's been -- busy, busy, busy is a ridiculous understatement. But I think we've got this thing teed up for -- to close next month. Look, again, let me be clear, no guarantees of anything, please don't hold us to it yet. But we feel pretty good and confident about it.

Can you tell us if it's going to be accretive?

Yes, yes, we believe it will be accretive.

Okay. And then one last question for me. This -- you talked a lot about how verbLIVE is not yet generally available. You've kept it to select existing customers. Do you have -- and I know it's about server stuff and getting all the bugs out. Do you have any idea when it might be generally available? What are your terms?

Well, yes. I mean I'm targeting generally available 2 months ago, frankly, but I think we're looking at some time over the next several weeks. Here's the bottom line. This thing is great, okay? We think it's going to be an enormous value-creation opportunity for all of our shareholders. And if we put it out and we get the kind of response that our models are predicting, the thing just blows up and overloads servers and people have not a great experience. And I can't let that happen. So look, I may be totally wrong, and nobody likes it, nobody cares. But I don't think so. So we're building up the -- our global infrastructure around us. We're even looking at some private networks in order to make sure that it works incredibly well no matter where you are in the world. So I'm hopeful that, over the next several weeks, maybe that gets pushed into September, but that's not going to stop us from beginning to generate revenue from it. Look, we've put it out. It's now available in Salesforce. And it's great. I was playing with it this morning. And I think people are really going to like it. I think the first few Salesforce salespeople that began using it, they're going to tell everybody about it because I think it's just that cool. And then if you're selling something, it's probably the most effective way to sell anything right now. So I suspect, just from word of mouth, that that's going to really take off. But we are working on a plan that will work with Salesforce on to really promote it within the whole Salesforce ecosystem. And by the way, we're already on the Microsoft integration and launch there, too. So there's a lot going on. So we'll begin generating revenue from that. And it will be within a universe of potential use that we feel very confident that we can manage right now on the existing infrastructure that, frankly, we planned for when we did our initial modeling around this and built and put in place, and it's ready to go. But over the past couple of months, as we continue to assess the market and see what the response is and update our modeling, it became clear to us that this could be way bigger than what we had originally intended. So that's why we're being cautious in doing it the right way.

Okay. Just if I was Zoom and I wanted to duplicate this interactive capability, what kind of head start do you think you have in patent protection?

We've got terrific IP protection around it. We've got a pretty meaningful head start. And some of our investors who have been with us a long time know this is something I've been talking about doing for the past 3 years. So it's been a long process, a lot of fits and starts. The technology is pretty complicated behind it. And because we were way out in front of this before everyone else, we've got some terrific IP protection already in place. So I think we have a meaningful head start. But I will add this. This market for this product is so massive. There could be 15 other companies offering the same thing. That's not going to change one bit for us. So it's that big.

Our next questions come from the line of Brian Kinstlinger of Alliance Global Partners.

This is Jacob on for Brian. Can you talk about the timing for the purchasing release and when it will be available for all users, also when you expect it will begin to have an impact on digital revenue?

So we've already released that. We release it company by company. So that's already in motion. We expect to see an impact, and we'll report on that separately in next quarter, so people will see that. But also, look, we're pretty -- we like to be very transparent. As it progresses, we'll put out press releases and let people know how it's doing. But we've got great expectations for that.

Okay. And you talked a bit about new customers in the last couple of weeks. I think you said about 6. Can you talk about the new order flow that you've been seeing kind of month-to-month, so from 2Q going into July and August?

Let's see, I'm going to see if I could pull something up here that can give you some more accurate information, give me a moment. What is that looking like? Let's see. So since second quarter ended, it looks like we've got a total of 24. It was at 26, 26. I see. Yes. So we're -- it's -- the deal flow has been pretty impressive even for us. So -- but again, I can't release names, but we will put them out in press releases. In fact, I think what we'll do to address this is we will put out a press release listing the clients that were added just recently. We probably won't mention names, but we'll put revenue numbers in. So people can see exactly how this is ramping up, which is pretty nice. And I think that would probably be the best way for us to deal with it, so everyone can see what's going on.

So you've added 26 from July through until now in August, right?

Approximately, yes.

Okay. And then is this going to be reflected in the second half annual recurring revenue bookings?

Yes.

There are no further questions at this time. I would now like to turn the call back over to management for any closing remarks.

We just want to say thank you, all of you, for your support. We feel lucky. We feel blessed. I feel super grateful for our team that is in there, killing it every single day. It's taken us a period of time to get where we are, as I mentioned earlier in my remarks. We were setting the table and now our shareholders will eat. We're very proud of where we are, where we're going, but this is really just the beginning, really, really just the beginning. I think that in the beginning of the call, there was some difficulty, I know I had some difficulty dialing in, and so it's possible that some people who may have had questions were not able to get in. So I propose this. If you've got a question, send it to [email protected]. And over the next week, I promise you that I'm going to read every single one of them, and I will respond to them. So assuming you're not trying to elicit material nonpublic information, but I will respond to every one of them because it's important to me that you are as informed as an owner of this business, as an owner of this company, as we are, or at least as we possibly can allow you to be. So please feel free to do that. I encourage that. Again, on behalf of myself and everyone in the company and our Board, thank you very much. We look forward to communicating again soon.

This does conclude today's conference. You may disconnect your lines at this time. Thank you for your participation, and have a great weekend.