Verde AgriTech Limited (NPK) Earnings Call Transcript & Summary

Good morning, everyone. Thanks very much for joining us for another conference call to present the results for the second quarter of 2023 of Verde AgriTech PLC. I'm here today in Belo Horizonte with our Chief Financial Officer, Felipe Paolucci. My name is Cristiano Veloso. I'm the CEO of the Verde AgriTech, and I would like to thank you for your interest. I'd like to thank you for joining our call today. And if you watch this on YouTube, I also like to thank you for your interest. And if you like it or if you think there might be other people who you know who might like it, please share our video, please click that Like button by clicking that Like button, that's how you tell YouTube that other people like yourself might also be interested in what Verde AgriTech has been doing, is doing this year, but above all, will be doing in the coming years. So thank you again for your interest, and I will allow in the first part of this presentation, Felipe Paolucci will be going through the PowerPoint we put together to discuss the results of this quarter. And then after that, I will be addressing as many questions as you would like to share. So at the bottom of the screen, there is a Q&A button where you can type in the question. If you haven't sent it ahead by e-mail, and we will be working through all the questions here. So again, thanks for your interest. I look forward to talking to you a bit later on. So now I let Felipe go through the PowerPoint presentation. As we begin, so the very important disclaimer we continue to go through for you. So as we begin, I would like to remind you that our presentation contains some forward-looking statements and results might differ. Above all, it's important to read what is on the left-hand side of our screen with some of our understanding in terms of risk, in terms of the development, in terms of approach we take to our long-term growth. If you are in the U.S., if you're in Canada, please go online if you're interested in our product, and you can try it on your own garden, you can try it on your own vegetable plot, you can experiment Super Greensand directly as well. So Felipe?

So beginning here with a summary of the key points that are going through these presentations in each space that it will be later on shared also on our website for everyone to have access whenever you wish. First of all, talking a bit on market overview, we saw in the last 5 or 6 months and decrease -- I see the decrease in soybean price, corn price, among other commodities. And this had a relevant impact in our business as well as we've already disclosed in our MD&A and press release yesterday. We can see that soybean price, for example, decreased over 27% in Q2 2023 compared to last year and also corn price decreased in a similar amount. So this made some farmers to postpone their purchase and also it had a significant impact for us in the first semester especially in Q2 2023. A bit also here on coffee and cotton. You can see the same trend, even higher on cotton, a bit lower on coffee and it also helps us to understand the current scenario that how the farmers and clients of Verde AgriTech are facing at this point in 2023. A bit on our economic scenario, there is -- on this chart, you can see here, the interest rate from our Central Bank in Brazil since 2017, we saw a decrease in the beginning of '17 from 7% up to 2% per year. And later on during the pandemic and a huge increase from 2% to 13.7%. And after only maybe over 1.5 years around, it started finally to decrease. And last week, we had a 0.5% decrease from 13.75% to 13.25%. And also you can see here the forecast from the Central Bank showing that they be -- in 2 to 3 years, this reduction should be to below 9% per year. And this is a very important point since it affects directly our loan costs and interest paid by the company to the banks that we currently have contracts. So this is a positive scenario that started to be facing from now on, especially on interest expenses. And this means also that the inflation is under control. And hopefully, the macroeconomic sector will be better days in the coming months. A bit on agricultural inputs and credit. The key point is as a result of the current situation, the farmers, they asked for our input from supply that provides extended pay terms, which means, for example, for soybeans, they want to purchase their -- they need to purchase their fertilizers and other products to be paid for it only in May 2024. For coffee, for example, it should be maybe for September 2024. So what they are looking for is for a more competitive interest rate in the marketplace. And I will show later on that some other competitors for sure, they have a lower cost of capital, which makes their sales easier at this kind of situation where the producers are of low working capital, and they will be leading the suppliers to support them with a long term, and this is a bit of our bottleneck at this point. And so in addition, the Brazil -- sorry, just a moment. Yes. So over 20% of the soybeans are still couping storage facilities. The farmers are waiting as much as they can to sell their product, waiting for the price to get better in the marketplace. On the other hand, also we saw in Brazil in the last few months, a strong valuation on Brazilian price, where it's getting stronger against dollar and also it impacts the exports of the price of commodities, which is not a good scenario. So for this couple of reasons, the farmers are waiting -- still waiting as much as they can in order to sell their soybean or to sell their corn and other products that they are producing. So just, as I've mentioned before, you can see here a bit on the market competition and financing, where Verde at this point, we have a close cost of debt on 16.6% per year. And normally, we do sell with longer terms to the clients, but charging them close to 18.6% per year, which is a quite expensive amount for everyone. And if you compare some other companies that are selling similar products or for example, KCl, they do have a much lower cost of cash. And then they are able to provide to the customers a better position on credit lines and also longer terms. And also in a key point, very important point is that our various funds are limited. We are not able to have on-hands everything or all the cash needed or credit limited banks that we wish. So this is a bit also had an impact for us in the first semester of 2023. Addition to it, another point that is very important to highlight here is the potassium chloride price. Since April last year up to June this year, we see a decrease of over 40% only this year and compared to last year, maybe 6% decrease on the price. And our K Forte price follows the KCl most of the time. So this has also a relevant impact, as you can see in our net revenue per tonne, especially if we exclude freight from the metric. On the current currency exchange rate, also another impact that negatively impacted us in Q2. We see that the exchange rate number 0 is close to BRL 1 and USD 1 close to BRL 4.8. So it was the beginning of the trimester over BRL 5 per dollar. And in the beginning of the year, BRL 5.10 close to that. And since the last 3 weeks, around to date seems that this trend has stopped and then with the expectation from the Central Bank and other banks in Brazil is that this exchange rate remains close to BRL 4.85 to BRL 5 per dollar. So when this trend -- its decrease trend has stopped, it might help us in the business as well since farmers also will not keep waiting to sell their products, and they might have some cash to anticipate their purchase and then come back to the market. So a bit on outlook overview. So I every quarter commented this price are no longer experience a rapid decline. Interest rates in Brazil have started to decrease and projections indicate a positive outlook for inflation control and stability in coming years. So these key points, as I've said before, might provide with additional possibility to improve results in the coming periods. That's the key point here. A bit on the Q2 scenario and highlights, you can see related to cash, cash and other receivables held by the company in Q2 2023 were $23.8 million. Cash utilized for investment activities decreased significantly, almost 100% or 97%, especially because last year, we were high on expenses with commissioning and construction of Plant 2. So now since February this year, we -- our level of investment decreased, and that's the expectation for the rest of the year. The bank -- the company has successfully secured a bank loan of $5.5 million and with a risk period of 12 months and repayment schedule saying 48 months. Currently, total CapEx and working capital loans to support these 2 activities are close to $38.4 million. On profitability, sales by volume was 107,000 tonnes compared to 202 tonnes in Q2 2022. And then shows that it's like a 50% decrease. However, when compared against 2021, you can see a significant decrease as well. On revenue, we decreased from 24.9% to 10.3%, basically impacted by volume and price. EBITDA before noncash rates on Q2 was $2.1 million compared to $10.8 million in Q2 2022. EBITDA is mainly impacted by all the scenarios and points I've raised before, U.S. dollar, commodities price and then fertilizer price for sure impacted EBITDA a lot. And then at the end of the day, the net profit was $0.2 million compared to $9.6 million last year. Equity and liabilities increased for $65.5 million to $97.3 million in Q2 2023. On operations side, Verde has announced the carbon capture properties of its products as detailed by independent study conducted by Newcastle University under the leadership of Professor David Manning. The CO2 capture is close to 120 kg per tonne of carbon sold of the Verde products sold. So taking this in consideration, Verde would be on the world's largest carbon capture projects with a total of 6 million tonnes of CO2 permanently substracted from atmosphere every year. On financial statements, you can see on this chart, the comparison on Q2 2023 against Q2 2022, and also on year-to-date analysis comparison. As I've mentioned, our revenue side decreased close to 59%. In the production cost, we did also had a decrease, but higher than revenue and volume, and I can explain that. That's mainly because of the questions related to mix. We sold a significant lower Big Bag or Jumbo bags, [indiscernible] BAKS products this year compared to last year, which has a very important portion in the cost of the product. And also the sales on BAKS is the mixture is a bit lower as well than last year in the percentage of the total. So for these reasons, the cost per tonne has decreased year-on-year. And then, as I mentioned on interest, to highlight here interest and expenses, it's much higher than last year. As expected, since the group has increased the loan on contracted banks to support the construction of Plant 2. And this, of course, is an impact that was expected to hit our net profit 2023. So at the end of the day, we, year-to-date, are slightly profitable than CAD 133,000. When we analyze the cost per tonne and revenue per tonne, you can see, as I've mentioned before, the cost -- production cost per tonne decreasing 32% from $26 to $18 per tonne, as I mentioned due to -- mainly due to mix change on revenue, we have also a relevant impact. Here, we can see when we exclude the freight, for example, we have over 31% from $88 to $61 per tonne. This is mainly driven by the potash price decrease in the marketplace. However, when we exclude this logistic impact, the gross margin remains stable on 70% with the gross profit per tonne in Q2 2023 at $44 compared to $62 last year. On SG&A, we divided these in 2 sections. First, total sales expenses and then total general expenses, we faced this quarter a relevant increase in both, but mainly on sales and marketing, we had -- this increase mainly go to the implementation of the field sales team, resulting next phases related to salaries, car rental and travel, which is relevant for this year, and we did not have in the prior fields. On G&A, we had also 108% inflation. And this we can attribute this to a few factors, such, for example, severance costs. And also that we incurred in this quarter. The severance fee expenses, we do expect the reduction of a savings of over $580,000 per year, but it will start to demonstrate it in our numbers probably from Q3 or half of Q3 or Q4 onwards. And also important to highlight, it's not a very significant amount at this point, but we did have a bad debt provision of $25,000 for the first time in this 6 years of operation, it is a bit relevant and we decided to disclose it here, although compared to the last of month sales of $75 million, it's not relevant at this point. And on legal, professional and consultancy also had an increase. This is mainly due to higher expenditures like the company reconciliation to Singapore. And this, for sure, the legal term we do expect to bring savings for us since operations in Singapore might be a bit cheaper than U.K. On logistics side, you can see in the left side of this chart, FOB against CIF, just to remember, FOBs when the producer pickup -- gets the product, the factory and CIF is when Verde delivers the product until the farm gate. So we did not have a significant change year-on-year of the total mix sold being around 68% CIF and the other 32% on FOB. And the terms of volume decreased the same, then it's 47% lower and average trade per tonne remained stable in Q2 2023 compared to last year at approximately $34.3 per tonne sold. And in the right side of the chart, you can see a graph that demonstrates the sales channels, a percentage of total, and we can see that we had a reduction on 6% on direct sales, which was compensated by an increase in sales -- agent sales from 32% to 37% of the total mix, and distributors, it had no significant change year-on-year. This chart demonstrates the -- since 2018, the volume sold by the company increased beginning from 29,000 tonnes in 2018, then to -- up to 628,000 tonnes in 2022 and for this year remains the guidance that we have at this point with a range from 800,000 tonnes to 1.2 million tonnes. And then in the 3 other bars on the right side, you can see the 3 phase from our PFS. First one of 10 million tonnes, the second one, 22 million tonnes and then the final phase, which is 50 million tonnes per year expectation. The loan side, it's important to highlight a few points here. We can see that the total cash in trade receivable held by the company at the end of Q2 was $23.8 million. And then we do have to pay and amortized by 2023 from July to December of this year, $9.4 million. And then we had an additional loan secured from $5.7 million. And also, we do have cost of loans in close to 16.5% per year. So on the right side, you can see the next 3 years payment flow, going from $9.4 million this year, $18.6 million next year, $7.7 million in 2025 and $5.9 million in 2026. And then the total interest and loan total ones that will be helping if nothing else changed up to the end of this year, $29 million, 2024, $13.8 million decreasing to $7.2 million, 2025 and $4.6 million in 2026. So these are the key points that I bring today for the presentation. I will now begin our Q&A section. I will ask Cristiano also for his important list and then we'll be here to answer everything is needed for the next hours. Thank you.

Thank you, Felipe. We have 21 questions so far. First question. So far, you sold in the first half of 2023, you have sold -- so, so far, you saw 200,000 tonnes in the first half of 2023, is the goal of 800 to 1.2 million for 2023 still attainable? From a production capacity, we can still reach this target, and we will carry on work in as hard as we possibly can to achieve that. Next question, I've read microorganisms such as bacteria and fungi have a role in enhanced rock weathering, while basalt rock has a much higher amount of carbon offset that then applied. If it is applied on farmland where traditional KCl is used, that will kill microorganisms. Is there an argument for Verde's carbon offset on farmland being relatively higher than stated due to allowing more micro activity, making it relatively more attractive as an option for enhanced rock weathering, carbon capture on farmland? Good scientific research be done to prove this. It is certainly one thesis you're raising here, Mark. It's definitely something worth investigating and at the moment, we are exploring how our Bio Revolution technology can accelerate enhanced rock weathering. So this is something that we should definitely be talking more in the coming weeks. Next question. If Verde will pursue greater discounted prices versus KCl through getting carbon credits, how is Verde going to ensure that farmers do not think Verde are trying to sell them glauconite more for getting carbon credits for Verde and not for supplying farmers an outright superior fertilizer that use KCl? Do you have a large volume of independent university credit research that you present to farmers proving glauconite superiority over KCl purely as a fertilizer? So there are 2 questions here. Starting with the second question, yes, we have plenty of research in that regard. We equally have around 100 testimonies on our YouTube channel in Portuguese of some of our customers talking about what they saw from the benefits of switching from KCl to our product. The first part of your question in terms of why or why not carbon credits would be perceived as a way to reduce the importance of the product itself. This is something very important because it doesn't matter if it captures or doesn't capture carbon, if farmer will only be used in our product, if he can see a true agronomic benefit. And if he's already had with KCl, we need to prove to them somehow that it's better than conventional potash they're using. So it doesn't change too much our marketing efforts in that regard. The next question. With significant carbon credit price volatility, is Verde consulting with farmers to form a product pricing model that we ensure they are confident to purchase year after year? Carbon credit price volatility is a reality. Obviously, it's much stronger when you look at carbon credit generated from reforestation or the organic soil carbon or other ways, which capture carbon that have been under strong criticisms recently because of its lack of permanency, a little bit of more context why carbon credit has been suffering that comes from the realization for a number of scientists and also carbon credit buyers that once you buy carbon credit, which was originated from, for example, planting trees, it's hard for you to provide assurance that a certain forest won't be -- won't fall, won't be destroyed because of wildfire. So that sort of carbon credit has been under a lot of volatility. And that is also why there has been a very strong interest in any sort of carbon credit originating from permanent carbon credit techniques such as the one we are doing, such as direct capture and always for you to guarantee carbon is being stored for thousands of years rather than being subject to wildfires and other phenomenons which are beyond our control. The next question. Given the strains on working capital and the high interest rate environment were already present at the end of Q4 2022, can you please help us understand the assumptions behind the sales guidance for 2023 and whether you still believe you can achieve it in 2023? I believe we will carry working as hard as we've been to pursue that target. The next question. Transport costs have been similar on a per-tonne basis to last quarter against the diesel price, which has come down quite a lot in the meantime. Is the transport cost per tonne, a result of why the geographical sales reach? Or is there a lag from diesel prices on your transport cost? It is because we have shipped product further away -- to customers who are all located further away from the mine, which has an impact on the overall cost.

Let me just add something here on freight costs as well. Yes, when we analyze in Brazilian Real, we had a decrease, maybe 9% to 10% on freight cost per tonne. And additional to it, it's important to say that once we have price decrease or reduction in the distributors, maybe, for example, 10% or 15% from Petrobras, which is the oil and gas company in Brazil. It normally takes a while to go to the final price that you buy. And also, normally, it's not 100% passed on, which means, for example, when we have maybe a decrease of 15% or 10%, maybe that only half of these are -- 75% of you can see at the end of the day and the purchase price since the distributors take the opportunities to increase their margin. So this also has an impact for us. And also another point, as I said, if we had a decrease of 10% on freight, we can say as well that when we have maybe 10% reduction in the distributors or from Petrobras distributors, it might become maybe half 50% of it or 30% of it only in the end of the day for the final price in the distributors to [indiscernible]. The next question.

So the next question, is the sale of carbon credit going to be a recurring sale? We would expect, yes, it should come. How is the quantity of carbon credits calculated? It's calculated from the amount of carbon being captured in a given period, minus what you have -- what do you release in terms of your production process. While you release your carbon cost comes from all life carbon analysis, which should soon be announced as well. In terms of the live carbon analysis, there is a massive advantage we have in Brazil, of course, comes from the fact that in Brazil, electricity is mainly generated from hydroelectric rather than from burning fossil fuels. So you would expect a very small carbon footprint from a production perspective. Other question. What sort of companies buy carbon credit? That's a good question. So essentially, I would say, you have 2 different types of companies buying carbon credit. You have the ones that are doing it to incentivize the space and have very deep pockets and are looking to try to promote certain types of technologies in that regard. And those companies are usually willing and happy to pay higher prices for carbon credits. Those, of course, the minority of your buyers, the vast majority of your carbon credit buyers or companies that are looking to mitigate its carbon footprint and face this as a cost. So those are companies which would be your S&P 500 type of companies that have made some sort of commitment towards net zero or for regulatory reasons, have to minimize and offset its emissions. And usually, those companies, they will be looking to put together a portfolio of carbon credits that will include cheaper carbon credits, such as like reforestation all the way to the more expensive and permanent types of carbon credits like the ones we hope to very soon be issued. Next question. Are there other companies that generate sales by enhanced rock weathering? Yes, there are the companies already monetizing that. Other question. From your customer base, what would be the growth by crop breakout, how does the EGR look? So those are 2 questions. The last question about EGR, we announced that annually in terms of the crop breakout most of our customers are growing soybeans and corn. Next question. Has been any conversations with Brazilian government or the source of funding to help the expansion in a more rapid manner? No, there hasn't been that sort of discussions. How much of a factor is this enhanced rock weathering to Brazil as a country government to accumulate help in it? It's something we do expect to increase awareness of the government, both on a state level and a federal level given the importance it has, not just for the country, but for the world. Our customers geographically distributed, what percentage on Minas Gerais and elsewhere? Most of our customers are in Mato Grosso state followed by Minas Gerais state. Has the cultural mix of your customers changed more soybean from last year? Yes, most of our sales last year were from soybeans as we had discussed in previous calls. Coffee sector suffered a lot last year. That is a question I saw no explicit reference to diesel prices as a component of diminishing freight prices is less relevant due to lower sales. I think Felipe has addressed that in the previous question. The next question. If and when Verde can sell carbon credits, what percentage would be used to directly lower farmer bills? We don't know this at this stage. How much of the state is an accreditation for carbon credit cost? It's expensive, but not being material that would impact materially our treasury. Next question. If Verde can hopefully boost is the next favorite investment? We're not thinking about it right now. As Felipe has shown, it is a very difficult year for the agriculture space. The first quarter was very difficult. And this is what we are focusing on at the moment. How much more product do you think you're able to sell the current market, if you could reduce the price by 50% with the support of carbon credit sales? Well, there's no doubt farmers are extraordinarily sensitive to price. They have been struggling through the first half of this year and the sensitivity in terms of price, of inputs, lowering their cost is massive. The more you reduce the cost, the less risk they have when they are farming. So it is definitely significant. How many future carbon credits can you sell since you don't know how much glauconite will be applied in next year? That's a good question. So essentially, you put together a project and that project will look into, for example, let's say, we have a partner, that partner has 10,000 hectares. He will be applying a tonne per hectare, that's 10,000 tonnes of product being applied, if about 10% of this is carbon captured, it's going to be about a tonne of carbon -- well, a tonne on 10,000 hectares, 10,000 tonnes of product. So 10% of it is going to be 1,000 tonnes of carbon captured. So that is what you would be generating from carbon credits over the year, and that's how much you would be selling from that specific project. With CIF figures is publicly available would be an idea to -- would it be an idea to monthly present your sales volumes? So one of -- that's an interesting question. So...

Yes, let me try to help you there. First of all, the CIF figures, they're even public, they have a delay on the time that we present or the government presents at the time that the volume was sold and it's based on value and not on volume. And it will also depend on the price of the products sold. So analyzing only the formation of CIF, I don't think it would be enough to measure the volumes sold by the company.

Thank you, Felipe. Is it possible to previous K Forte only implant without having repercussions on stocks for your customers? Yes, it's possible. Is it possible to produce another product at plant to other than K Forte at a lower cost? No. Plant 2 is designed for K Forte. You cannot produce BAKS at Plant 2. If your product with highest margin is BAKS and it has a high cost to having to add micronutrients, can the company offer a new line of this product without micronutrients at a lower price? Yes. This product is already K Forte. So BAKS is K Forte plus micronutrients. If we strip micronutrients from BAKS, you go back to K Forte. Is there an approximate date for when Plant 3 will be operational? No. While we search and found carbon prices around $100 per tonnes, how do you come up with $300 to $500 per tonne? What's the source of this price? This is a very good report, which was recently published which look into the price of carbon depending on how it originated. And as a matter of fact, it shows the average price at $500 with sales even higher than that. Of course, you need to look at liquidity, the volumes that originated that sort of average price. And given the fact it's a new source of carbon capture, in liquids, it is very high yet. The price of $100 is the holy grail, as it's been called by the carbon capture industry when you look at permanent carbon storage. So that is the number that different parties, different companies, governments, different organizations, they look at for the price of carbon credits and say that this is the best outcome, the most desirable outcome. Read in Financial Times, I think yesterday, there was a criticism to the U.K. government for adopting the long-term price for carbon credits at GBP 150. So it just shows where people are looking at where this -- the price for carbon credits should be settling in the coming years. Could you quickly state what affected your recent earnings release most and if any of them were onetime currencies? Felipe, he went through a detailed presentation where he showed a lot of charts explaining what's going on. But in -- as a summary, and before I get into the summary, if you're watching this online, it suggests you can -- or even for you, Arthur, you asked a question. If you go back to the online version, you'll see the detail. But essentially, the first half of this year has been very, very, very atypical. So we saw farmers struggling with working capital because they had to sell their production, mainly corn at depressed prices. Some of them had borrowed money earlier on when input prices were much higher. So it came to a situation where they were struggling from a working capital perspective because of that. On the top of that working capital struggle, they are facing the interest rates in Brazil are extraordinarily high, above 13%. And our cost of capital follows that. So our cost of capital is around 18%. This is how we can fund them and clearly, obviously, there are several other companies in the space, which have a materially lower cost of capital and can offer much better terms to farmers. So I heard from farmers saying, for this half of the year, it wasn't necessarily they were able to buy the product they wanted. It was more about being able to buy the products they could finance and that has hurt our sales. Good news is that it seems to be changing. So with interest rates started coming down in Brazil, price for agricultural commodities stopped coming down as well. There is some recovery in the horizon. Price of potash from the last few days has started recovering again. So hopefully, it's all beyond us, but it was very, very atypical. And that's what we tried to talk about in the press release. I would suggest everyone to read the press release. Look at the quote on the press release, we tried that the quotes to address exactly what was behind what we saw in the first half of the year. If you also are interested in reading press release from all the companies similar to ours operating in Brazil from agricultural input companies like Lavoro, AgroGalaxy, [indiscernible], the several companies listed in BOVESPA reporting in English as well, which you can have access to and helps to give a broader picture about how challenging the year has been so far for farmers and for us. Next question. What are the reasons why the markets close you or not amending replacement rate demand for your product? Why do you need to expand sales reach? Are you losing customers in the markets close to you? If so, why? We look at the market nationally. We are looking to get to 50 million tonnes. So we will carry on selling to Mato Grosso state and in other states, further away where we can make money in the sale of the product. There isn't a specific, as you suggest in your question, there is this specific phenomenon of losing customers market close to us, which wouldn't be consistent across different markets. There isn't a localized issue, so to say. What you saw is what I addressed in the previous question in terms of farmers struggling from a working capital perspective. Do you still anticipate first carbon credit deals signed in Q3? We're working very hard towards that. Do you know what percent of shareholders reside in Brazil, what percentage outside of Brazil? It's the vast majority out of -- reside in Brazil, there are hardly any shareholders in Brazil. Will you be monitoring the amount of short sellers in Verde? No we want -- I am afraid I'm monitoring the satisfaction of our customers in Brazil and our progress rather than short sellers. In Brazil, can farmer group themselves participate in the futures market for the commodities they produce? Yes, they can and some of them do to a certain extent. So that concludes all the questions we have received today. I thank you all for your interest in this presentation. If you watch it online, thank you for watching, getting to the end of the presentation. If you like it, please, please like that Like button, that's how you tell YouTube that other people like yourself might be interested. If you know anyone who might be interested in a little bit more, please do share the video on our YouTube channel, we will also come across several of the videos about what we're doing. We have a new website, if you haven't seen it yet, it's live. And if you're watching it online, thank you very much for your interest. Thank you very much for joining us on this call. Thank you very much for sending those questions and I look forward to several updates in the coming weeks. There's a lot happening. There's absolutely a lot happening. And perhaps I can talk a little bit about some of the stuff which we expect to be happening in the coming weeks. As we prepare the company for growing production, as we prepare the company for the coming years, we will be adding more senior executives to the company. We should be announcing a Chief Marketing Officer, we should be announcing a Chief Revenue Officer, we should be announcing a Vice President, Corporate Development Executive. So we should be making those 3 announcements in the coming weeks. We should also be giving an update on some very good results we received from [ SELIC ], which is the product portfolio application has performed really well on [indiscernible], for example, so we should be press releasing that. We should also be press releasing some results on [indiscernible] nutrition. This is some work we've been doing, developing some different products for quite a while. So there should be some update on that as we start looking to develop that market as well. But no doubt, the one we are very close to be announcing are a series of press releases on carbon credits. So we should be soon announcing how fast preliminary results have shown that we can be capturing that carbon capture. We saw from the work by Professor David Manning, the product can capture. So there's a special research which was carried out in that front. There's, of course, the live carbon analysis which is getting into completion that should be announced. There are several negotiations with companies about the carbon credits, which we should soon be announcing during Q3. So it's definitely a very busy next few weeks. I know most of you are in the Northern Hemisphere, us here in the Southern Hemisphere in Brazil, we're busy. It isn't -- it's just business as usual. This is a big time for us and hope you're all enjoying the summer. I hope you're enjoying the summer in the Northern Hemisphere. But here, things are progressing very fast and we are very busy. The teams have grown very busy moving the product -- the project as long. So one more time, thank you very much for your interest. I look forward to talking to you again in the next quarterly results. But there's no doubt, you should be reading a lot of press releases in the coming weeks, lots of quotes. And that's it. Thank you very much again. I look forward to our next encounter. Thank you. Bye-bye.