Pressure BioSciences (PBIO) 17 Nov 212021 Q3 Earnings call transcript

Good afternoon. Welcome to the Pressure BioSciences Third Quarter 2021 Investor Call and Business update. [Operator Instructions] It is now my pleasure to turn the floor over to your host, Ric Schumacher. Sir, the floor is yours.

Thank you, Catherine, and welcome everybody to our third quarter financial review and business update.

begin, to we statement. a before always, I read need cautionary As following statements Litigation Private XXXX. forward-looking may Reform the of The constitute the within remarks meaning of Act Securities

company's time factors, release unknown the or implied performance of Securities such to Exchange expressed factors future the based. are to updates materially Such on uncertainties and in any results, reflect actual the time be filings obligation in achievements or and expectations to known include to revisions change Commission. forward-looking circumstances those from involve with cause the statements. statements which any any and Forward-looking events, detailed disclaim such among or or or our other or change different which company any statements, statements performance We publicly, expressly may results, forward-looking achievements undertaking from in risks, to others, any or any conditions

that pleased is So last the I'm John, that for first Sales back of Director Hollister, about time. Pressure all, a of to for has year and a we the John role had He Welcome now. Marketing heard onto call, Bio. voice held welcome

before, Jeff Peterson, we'd bring in John to great, years. the He had because number of John in I Sciences as worked a is be board. me said background. our He who had on old lucky great Chairman, sold to him very has and and his came just and jobs, not is mentioned between As years. Not he Life company, through for but Biotech number a the a for many, field has of that as me,

he full-time if part-time the to longer than years out he been help He would to is as could consultant as as I'm its with on be next -- me, and us in he endeavor next he so Roxanne, his until X lost board and role that Head background, take I've and during long over for, of started, slow come rooting will next still hoping your that was been year he'd this very that we and, agreed, for because privately Marketing, last longer has John and is we which expected, who he -- ago. continues and in endeavor his me take of John's he have. with making, John and of and recipient I are the smart, that XX I'm experience the just to guy us said endeavor path is asked would expected for that hardworking we're GlaxoSmithKline Masters. So grad super a big had that. Small on a time, company end our years he with company the had a Stanford a at board experience, it and been with to Sales than came Amgen. lucky

So to John, the call. welcome back

Thanks, and it's working Really it and appreciate the with team. Ric. you my pleasure

highlights, the take during So than I of results, for with technical quarter. questions. of to John to that a and quarter And discussion some happy operational the we're have to the more third and highlights we're going talk both about start today's and third then brief occurred are going afterwards, meeting, then some

K meetings, have has case. drawn long on highlights, going as the the third highlights this highlight jump release in and talk regurgitation the on overview, Everybody out we'd the the said, As which about things a Q&A. will, and quarter, the out like we'll Q, have technical probably press the sent also to today. I some I into There we'll we been last we not or and to through few the for then the on financial go the are I'm then operations, Q, the financial of

PBI Agrochem, other -- I which we Several hoped the quarters. actually I versus XXXX in year. really quarter. QX quarters of of that. and we sure X have highlights financial had having today, are new quarter I've all the the to we than we and after and Agrochem thought wasn't had now, all, flat really started calls this better much, in since everyone best higher disappointed we've August, purchased year, a that. the inventory, was 'XX; brand and second has best and they so of filed it today the we're talk Q sales, we as and compared X investors a that called, would shortly. But and by close share in some couple XXXX. people that about and happy second-best and last called much basically PBI -- we expected It I'm seen disappointed, July a night the was just for with in the after was mean, just to that part. in Agrochem, to ever X been more number has so great were it about first we'll starting expected the some primarily had will were So they revenue talk say, great a see They're good last it thought to get the a it's quarters had first far where change quarter, had, we didn't it pretty

XX% Revenue and we We our down sales, in to year hope mostly have We down in a X%, numbers had from quarter-to-quarter, the more. the sales, services that but ago. about Agrochem some we have and aren't The more down certainly big. in is third Agrochem was so we the fourth did instrument So X%, UST significantly have as sales quarter, to of XX,XXX quarter. had hope no XX% some flat. in and of came actually consumables, increased BaroFold course, initial expected, which again that we sales did the

the stock is X and Relations The down stock as vesting that about expect for to Investor was operating at $X.XX. the was loss options. over $XXX,XXX, which $X.XX versus and lot down, was in loss accrual a The period, $X.XX go years, might per from share that $X.X million you of options

to months XX%. loss is improved, still also -- operating improvement share quarters services the Instrument For operating the quarter, up year. a the this you XX%, up year, of of have look BaroFold of set per $X.XX. XX% decreased very down The first still has this good our months loss has XX% results, when so is revenue first have about over and on consumables, up date, it's still last X XX%, the at a sales we loss UST X up we and XX%, for X still

for in hoped So we a better had quarter. all, all

for supply our cargo not the into arrive in around of October we fourth land sat certainly lot of Agrochem ship Xth, September, chain business to hoping in come because and some are coast $X.X wasn't it of came middle which October until inventory, the purchased. didn't until ship quarter. issues LA, off X of and taken have almost August, We announced in, that the driven was for wasn't of did by a and We a in warehouse the weeks October. a of -- million the purchased even we better of which A that lot being that off XXth, into

think get It's of million some -- longer to beyond than not about we back have fact on, to thought. and X, plus. that Agrochem we These the company some expected. of U.S., they that taking of so goes this going little terrific we in be ago Basically, think hoped hadn't a of the just these on. purchased we we sell, who other could until to during per in years X years, X, them additional the -- couple there customers, did product customers. that, products, the that were between back would can X market nothing working they're in it fact products prior get that with early We're well Probably we since -- we products. of could to reignite and product sold years that inventory and than sales had have it's inventory to as had them years we as time We move. products can the taken assets even founder middle the bit using, whose that, major to and hadn't used quarter. But for October. the December, trying a are between We're wasn't really taking September -- and that on agrochemical and bought we're are The So years. the the $XX third now for longer been eco-friendly acquiring, X that ship and just between -- in prior X the year off are

in product be and do in we but purchase So X raw our those outside those affected that the Reno, the we fourth see us, to available of available things processing the product and new and will Nevada, quarter. we sales adversely that are sale facility expecting for that are expect is we're

you So our to to John, on the happy with the over customers, of to anything, you. insights every some be have if particularly line of want day being you turn firing add I'd it

the and understated it affect be shipment the a we news, devices and about Agrochem launch is issues this challenges the don't does in world the logistics it it faced, and learning country, has business, impacted I our that think impact. Yes, has and and logistics as the lot been of it just across can of internationally we're logistics its the

the to getting So of issues ship those that can of looking so faster. way, I out we am sorts our forward product and

we The what that. able a happy we last to was some we were our still year. of products that quarter that So average able made fact was the much quarter in the over as and We're minute shipped as still with out. -- we the twice have that and were last quarter, were were, fact a disappointed, get $XXX,XXX to of

instrument One getting the we in to Platform, for make our our Barocycler. parts of PCT the had, issues is

over been suppliers. ways ingenious We've to to in in. doing placed in be We think third this, difficult to quarter. I and the have the last had world X to we've years build in we shipped instruments go very has we've get that parts those, ship, getting XXX around parts just to had or We've to it to had XX the and able roughly find so other be different was to

in they release particularly -- company the we the national our came contract went -- the contract our they press all space lost in couldn't miles put an away, and with also facility. by them lost only in manufacturing XX the in Q, that taking manufacturers, their refuse made basically as in we a offer and We because

of all set we our year. gave facility, approval up and another to of possible these to CE up order in notice, that another that astronomical. of body, was get passed had building products. this the set they notified acceptable, to marking had The them done out inspection of group but finding was was So one We to had had a -- cost that our us get on mark underwriter build because to in-house, from the instruments that time in short period not We house

So right ourselves, we them and under with labeling. the spec built

hoping did but the very issues between most of equal the out them rather fourth, fourth we kicking the in that, and So were in Agrochem with of we the things pretty all still came X. quarter for all optimistic that kind happen, and the will than exception the were which sales off all with third again well, of we -- business, of the

actually since that too. the so we've X pleased was with we're it months So and -- best had XXXX year-to-date

so learning, be crow to about operational customer We've In process in of level when and shipment in arrived third now. comes here. of learning to want a team and terms and some and don't chain terrific. and supply times, a laboratory our another and to all certainly these shipment on I highlights. your how raw issues. of to we're really have mean, that have business, do up all some going that it's things, setting and good fertilizer about inventory, put to They once -- it month. we're very we press they this, else, a about inventory of package the talked we're eco-friendly on ship and at pesticide, inventory it one into John and wants -- order top to of Agrochem of and proud have is, of ship has processing cargo learning has releases thing that by in receive need insecticide We do that and things the us, necessary I'm the is into certain to facility. product warehouse gets mean, to out the don't all it This is needs wait care been our product product I processing technical but have a everything

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though, find further. way X, further, you times believe make got really a So can go can much if and amount X it something, then to we a certain we you make

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a that it it, people there. know swear I that works great. that works out by it products we lot use and really And and Natural of Isn't what want?

of Canada, as going we're primarily So fertilizers Great and couple lakes, a National had U.S. of not insecticides. off because run to a story the the big be ago, Lakes the of Geographic months in and on killing dying

continue that's what products, Agrochem need for look And is to more so eco-friendly all to and we about. PBI

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they're this of sparkling, sparkling. just doing nanoemulsion We and very is of material John very, the studies. microemulsion It's and will plenty and like look so-called we've But the frankly. you've seen Astaxanthin, to again, just us you X John, about very, just bioavailability products, clear. And be said been -- actually CBD companies, the called ugly This a very which quite also is stuff right? just some unexpectedly, that quite talked and of to few have they're of talking just there's

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As Ric has mentioned, us, help. who have for called looking

are ago. shared release pressed press in not now which long getting manufacturing, We we commercial into get to a

the so it's great, potential there [indiscernible] benefits. So the exciting, marketplaces, extremely could many UST are great have door, where different

Great John. Thanks.

So on you and UST. it mentioned we're

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So in is for want next quarter the fourth have goals I assets. for I mention this before year, I some we've of we close and to some put we to of that and acquisition thing today's rather that in these Q&A is, agrochemical of aggressive the expect the have and company the last press my unveiled quote release,

their companies and of and that it's farms who use introducing to taking the product. the we working had that hoped. the to and We're basically company they We us is used to and the company, others distributors, than with expected the years founder working used them. are use with ago used that And owner longer again or a few

and exchange, stock it it's to quarter Some and Exchange. takes it's NASDAQ be all on next if there on whether will that it fourth the and is some it's in just close multiple some New will a we we're needs year, working a that be we're it need just very before. -- about to able generate company reasons hard issues, the of We national it it is to for supply very the be But optimistic inventory. we've to side. Clearly, in product, not exchange, Agrochem this York longer, chain Stock and this the -- sell good even of better revenue that, through or of talked

continue talk to with the We exchanges.

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as come in the be next we've run end do seen and the and up the next with year, that. company business to months believe back next probably end those of talk things core this we about or numbers XXXX. get it first by the over that few first back. the and X and again, quarter We over can we've of and can -- Sometime But will we we of -- our believe running, or profitability in coming year, before

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question from [Operator ]. is coming Instructions] [ Thomas Your first Calder

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so, answer is your the over. question, waiting to And Tom,

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We behind a have College Food Ohio Agriculture, an entire have with us they're and partnership They State. XXX%. of

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mean So electric trucks I Tom, we've and cars it. decade, for about we've about a heard heard right.

that. More than Yes.

than my FXXX, a Ford truck am have they to truck, that. know, as guy. waiting these you getting than guy. are But More truck Ultra I'm been me But for truck, I'm time. out. for for and a we Chevy get to decade more I'm get investors that. for and I electric something or mean don't my I I've or a I know things guess with are good they a I impatient as now. F-XXX -- money Shear our has Ford still take been do, coming I've waiting a whomever, out

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the in systems commercialized and a So first months and next we're matter few see to running building we be X systems. want here, all revenue a generating we up and tolling that year, need want of to okay. of we start to that We're building

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The Young, from interested, chest, we to for? be we boutique? you a be are to these know mean that? kind scale, you're focus going for industrial? large is agrochem going to at to doing we with organic looking fertilizers? Can doing I What used of this? Is here we I while this and all Is small -- of anything scale this this are I'm talk are got whole ago we're do holding but stuff? what focused. mean And craft, fertilizers I the about are us.

West about dealing and we've scale. could that all honestly very with sizable not been million could about selling Materials. that of we've big that We're think talking terms dollars. introduced in in something eco-friendly dollars. distributors do dealing large we certainly Coast dollars, Midwest. the I that We're the selling over be talking next It's of year. couple very-very and spoken this some are are believe East a many I thing the of with millions The with, materials country, We're large farms with to, eco-friendly mostly and dealing

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a as before, going add about future the the good same in they you you're said to the in be using that state with this, in because -- agriculture. John, though anything? desire now, thing want nanoemulsify kind going even to So to are we less could be those, of further which better, close helps everybody, the lot have are do happened are they they you and so nutraceuticals, it, to we to

Yes.

enough, -- eco-friendly but touching them think are something are you chemicals probably on of don't these started which essential oils. on actually I most we touch

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the accomplish so same therefore to needed And perhaps, is product less goal.

we're this distributors. lastly, on business very then So and selling to focused is excited,

volumes. will, potential you if much turning there's customers, this also for the more product. into fewer but But So consumer-oriented larger

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processing then just the can and your a a used? chemicals no? I I a the more Shear on for yes That end the THC-CBD, back-end technology that or a see the Ultra helps question, being so used Okay. on being of the -- producer, lot. one of Is cannabis front have And

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on job. or then CBD no the question, that that's that do front helping any and better grower end is there back-end, of with does And So process our a cannabinoids. wonders the

development we're use absorb, all sorts and and different we're these learning done products difficult learned pull all They're in different about a for companies team overcome with formulation that It's companies. the for different at them of is to carrier, and lipid human learning with that that that problem, remarkable -- used. few doing BioSciences are have of can couple we things the very really together we've oils, X now part, frankly, stayed And different of about it XX managed different Ric actually a Pressure what the to because surfactants different no ways a small And in we're are we've years. to the to last years. it's

and would always As of that learned, precipice accelerating companies they into envisioned now they they've the really have on become. the

going something Well, you break out? -- to to we're this Okay. Ric I just And guys there's the on think it's I appreciate bulletin, was CD answering one I out you going more, is the a break this. are but side? it the number. know agrochem

We are.

Okay.

to we broken -- out will we because think that that deserves enough, forward, it significant to going So be be going break number it out. it's

guys ESG, supporting I we're Well you and okay. pursue love it. I technology that Right,

So up. it keep

All right, thank you.

Your from [ coming next Gary question ]. Zwetchkenbaum is

congratulate X focus you only that but to issues not business, on I want X also want sales, you've added on you've X to or the for to be quarter, I Agrochem your third focus, supply want questions the the with John, I your and months, that. QX to and Ric had. able on

I XXth you in million call, back October talked coming okay. last And I a is October. of conference mentioned ask your the lot that to Going -- about understand product. regarding XXth $X.X you want buying to late, you October, products, roughly

product revenue. correspond that, $X.X million You in would sales, million in in said that to over $X

late. a So obviously didn't to in get I want feel, come it

in, said appreciate recently occasions, your spoke would on to as you've you largest I be America, came or traction, what important. do landing we was, coming in a you million Agrochem you XX from and those about in with he do some it in already business to California, because this next dollars very-very it which we few how that some in already revenue it. busy. million to X a think from, numbers, soon Is to doing interested the dollars agrochem year? And ordered. product process, together at where and North break X a were done? Can can that could half I'd and get I you you that, I could $X could I me we But we more is mentioned will has talk can we're total focus about into questions, where the you because we he sales You weeks. year, possible know thought next the producer if that? more. than was this, that coming This with on better I double is been Ric who some that into hitting sales? words, talk to give is Are million in for into than talk think next year, looking going few in can first thought If more a caller, could QX, about know, you if feel there Agrochem sales. In your other try is

Yes.

inventory. have We

or it's of in off equal and to $X.X be ships now probably going probably the in inventory, ship warehouse, ship. -- will either coming came on million our that coming, cargo was in more where And week, or we now is taken up We amounts. it be process have have it's August, Nevada and a we in October this

it And sell, that million $X.X million? million, have we is yes. and $X -- if is The is so to million, if $X is we that a $X have answer

retail, it about. John as margins you into if even better, good become very talking margins have go now, or was We right good could

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I And accept so that. already I that. it said stick I've and with

million $X.X $X million to So quarter. in expect the we Xth sales see to in

also much that. do we than -- more We will

distributors. the just do that willing give getting a talking still think not not asking to could number, next them have -- already what year. some aren't We're to agrochem next some of up. $X good or the more quarter. over just our We're introduced them I very they our going I think to But for, much can -- are next inventory, setting expect we're dollars, million millions it. about the we started. sales be do in than we're buy I'm backing year. Remember, stage as a we're but year. million, said have just $X of you that when course Gary, we about we're to and reasonable talking of of Xth But of it's product, I'm the going do getting We to not before, course we're we

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it's big. time they're really really to will. big, only You year. you won't still believe because don't recognize hits, next If this one of be I this going X both the company

Ric largest producer. and this talking John to and

told and smaller your when companies. are smaller me, sales initial greatly to farmer the expressed larger me to get to you margins the You the increased. producer, were He

going guy, So even get once I smaller that margins. think you'll to be and reach a you'll bigger able you have

few quarters. the some congratulations. to So had but you've I I delays, next know look forward

revenue You see the regular your the for year. dwarf agribusiness

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great. be That'd

are Catherine, there Gary. you, anymore? Thank

Yes.

You Brady question have from a coming Lipp.

taken if with expand University and the in the beverage this get Dr. it's Subramaniam just area, meet due Ric, done any of had Ohio extensive -- kind top I've you a Q&A market time I which industry. down CBD diligence due huge. expansion market food in was of to obviously to a industry, of could market, yes, people the diligence with the the of bit centered extensive go wondering, my question CBD tier bit little down in little question initial pharma around the is opportunity with of in the on biotech and during people even sense course start session. to an -- you is a people Tom's for and kind I've my the at in some pharmaceutical

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had So that at gotten, many objections feedback of the you've with if of all then of for second any of I'd is, question. those kind type to that's model. if question conversations? industries the you've of And like that kinds hear one these you've had

sell going model the and so to to soon, and to place jump So not a be I'll on which we're the short. monthly We're instrument ask one time plus going instrument. it's in jump facilities, on this. to are going then to I'll we be is The royalty. this I of going a minimum charge, the run know in John out

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we that. Now do don't have to

of thousand want thousand give the from we few us and versus hundred a response few month. give good dollars about extremely piece But action upfront. the of actually a -- people, had us $XX,XXX a model a we've So

big and ones and model. bigger our will take ones place it some know, other This ones. The as manufacturers. there the there take supplement of of are lot instruments. -- So market not ones, and welcomed. thousands you vitamin And hundreds, there's a and manufacturers, the is of CBD has small are the for if will tolling are small will been help There hundreds wellness the

they're a going buy If to have you it. better mousetrap,

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Brady. the So hundreds very, through or We're is X, the manufacturers, going or very either by you market after tolling not installation. John, or to big, add one that? X we're going can the to after of

And that you're that certain the who doing as as your modeling, access in that I too. seem a CBD level a it nutraceuticals out royalties and just, Ric gotten much deal that had are be receptive a in to has, there thing royalty. of are of fair same only the But traditionally I'd I'm our people those have The more you lease would are add paid, I've structure. an analog the as say from world, have royalties -- response doing with to is Brady discussion terms the to pharmaceutical as which for those. They're to to seems well analog

Catherine, questions. any other

the We have from lines time. no further this questions at

going half am say calls and didn't maybe to the would one -- add ask I've dozen did. offer to had -- figured I because because one I that you or I even And but want a are someone I guys -- it, know but something, things I no it, of XX.

on got months. to September So had at December I'll debt your yes, over seen wanted offer sheet half out more last million I the on and convertible is, on. balance X but people the there it. in to on I've balance And heck XXth the the I've is, XXst. over what look dozen say, $X balance going just what you last is sheet point a call and me sheet to the compared

increased convertible our $X debt by million have We roughly.

the our if when has we uplist, However, convertible debt, convert into to XX% more, that agreed uplist. not do of

at if is more, lot much that So add debt stock, share, And least not our are of better into a the year up-list. going that convert ago. when of this is a a to had this debt the debt, terms we do $X.XX the of than terms we

dollar these, -- more other is instruments building, to XXX,XXX So these that the you'll debt out see so on test of doing. sheet normally. lab the other many we look build balance the helping and that the and many debt, some things this But do and the thousand at XX, we're debt multi-hundred we're and have cash that of things you when replaced that onerous some debt us build is September has

balance sheet Our in $XX,XXX has cash.

million a Our -- quarters sheet almost September of balance had quarters XXth in cash. dollars X X

have. inventory. million $XXX,XXX There on been in inventory sheet. is $XXX,XXX $X we is it, would that would normally normally not balance $XXX,XXX in prepaid that a can't prepaid more was call receivables is have, it, inventory, hasn't expenses, because we in it we we ship, that the that received. positive $XXX,XXX the mostly There stuck on cargo and so There there's but cash is not So in

So debt. sheet, have in the sitting there come are is extra that a $X.X assets from that on million that balance

liabilities, at our we If payables the you reduced you'll that $XXX,XXX. look see by

lend employee that and We've You to expenses debt. money, make loaned I sell employees and it's We've to the it's rescue, or product reduced Jeff other related reimburse had have and well known when that weeks, and carry in to myself maybe bothering Jeff make that it, Jeffs cases, for something things and out money the of accrual. I've -- will been we it reduced to we compensation maybe a couple pay incurred, they've a and is most had money. that's by needed when few years, to for few reduced our Chairman, accrual company we've -- I've me can't buy see borrow to payroll, tight do for people $XXX,XXX that and our and the some that a on case, we've an the it and my loaned years. to my money days up It's family, has $XXX,XXX. ended come being party Peterson, But our in by

And reduced so we've by debt party our related $XXX,XXX.

sheet million the company. if sheet the add the We're the balance other on other positives of good, that make that of into million, is you $X we've the then about is make not So money all you'd company $X there to to the the the side has the up $X million, gone And to that on see running that stronger, yet. going stronger. balance used profitable

yet. cash We positive not are flow

onerous blessed very do. But upfront the pay So that money of uplift, most what we at rates, an years, taken to we this has an we've is borrowed we which debt convert uplift, unlike into to when do that so agreed to that to we this is previous debt have money back, are if is in. plan

debt to $X debt, that's people million better, $X many things about, the make used if sheet, up debt better, It's were and that convertible you're really things have to and who better. more Yes me on to eyesores, going company debt. make debt. half in going call the answer upset said the million of more to ugly better the So balance to is you've many, and convert, clean we've and it's it

than we to So position be sheet, all to in we're that position now. our of I'd say terms of years, and said a in cash now, terms have We're I've done in several been in have a flow. in balance position able that, better better we're in be all, the in in. before, our

Massachusetts. into to up we So to that we a take I borrowed, Shear. generating some these Eastern and Ultra going out Shear And months and especially Ultra into it going that think going a $X be quarter, in just the minutes running it's wanted from are new few second or now very good in gone, revenue by, systems, million here the first where to couple through point of X that has places building

we're know I with done So questions.

are I coming everybody with time. We on. done appreciate

thank say know I to out we're want that, But and want does just I John I to of Catherine, too. time. So everybody

questions. and you me, and to and for everybody And know thank how for I me, for always, I'll John So taking hide. the for don't reach us, the time as joining

had just So since -- you X night. I can last calls I have

like me, email feel need to text answered, If questions get back to as call soon as we'll you -- we didn't get and you me, me, you can.

unless don't have always next And we in in have. That's our be can be told which look don't wrong, you've because November. May, call, I is I not recognize next call we which our And goal. I forward and that was could the the I'm the will May the for between, to K, it's we in much. recognize generally so that Ric, May. hoping company, company changed it's again one thanks we So next

of XXXX. thanks to you May in Talk So everybody.

ladies you, and today's Thank This gentlemen. event. concludes

wonderful time have this you for and Thank You a may your participation. day. disconnect at