SenesTech, Inc. (NASDAQ:SNES) Q4 2021 Earnings Conference Call March 29, 2022 5:00 PM ET
Company Participants
Robert Blum – Managing Partner-Lytham Partners
Kenneth Siegel – Chief Executive Officer, Director
Tom Chesterman – Chief Financial Officer
Conference Call Participants
Sameer Joshi – H.C. Wainwright
Avi Fisher – Long Cast Advisors
Operator
0:05 Good day, and welcome to the SenesTech Fourth Quarter and Fiscal Year 2021 Financial Results Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.
0:38 I would now like to turn the conference over to Mr. Robert Blum with Lytham Partners. Please go ahead.
Robert Blum
0:44 All right. Thank you very much, operator and thank you all for joining us today to discuss SenesTech’s year end 2021 financial results for the period ended December 31, 2021. With us on the call today are Mr. Ken Siegel, the company’s Chief Executive Officer; Mr. Tom Chesterman, the company’s Chief Financial Officer. At the conclusion of today’s prepared remarks, we will open the call for a question-and-answer session.
1:12 Before we begin with prepared remarks, we submit for the record the following statement. Statements made by the management team of SenesTech during the course of this conference call may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended and such forward-looking statements are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.
1:42 Forward-looking statements describe future expectations, plans, results or strategies and are generally preceded by words such as may, future, plan or planned, will or should, expected, anticipates, draft, eventually or projected. Listeners are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors and other risks identified in company’s filings with the Securities and Exchange Commission.
2:21 All forward-looking statements contained during this conference call speak only as of the date, which they are made and are based on management’s assumptions and estimates as of such date. The company does not undertake any obligation to publicly update any forward-looking statements, whether a result of the receipt of new information, the occurrence of future events or otherwise.
2:40 With that said, let me turn the call over to Ken Siegel, Chief Executive Officer of SenesTech. Ken, please proceed.
Kenneth Siegel
2:48 Thanks, Robert. Good afternoon, and thank you all for joining us today. As you hopefully saw in the press release, we finished the year on a strong note with a continuation of the revenue growth trends we had throughout much of the year. Overall, total revenue for 2021 more than doubled compared to 2020. With product sales growth of 123%. Importantly, and while I don’t want to give specific guidance, we believe we can continue these trends in 2022 as well. As we sit here today, I believe we will once again see more than a doubling of revenue in the first quarter of 2022, compared to the first quarter of 2021. And Tom will have more to say about this later.
3:33 The growth we are achieving is being driven by accelerated penetration of ContraPest in both existing markets, as well as an expansion into a number of new market verticals. Key to the growth we experienced in 2021 has been the deployment of a number of sales acceleration tactics designed to increase awareness and recognition of ContraPest, including enhanced marketing techniques, new advertising and public relations initiatives through the Operation Rat Race campaign. Development of a new website and branding, the launch of an e-commerce site ContraPestStore.com; completion of compelling real-world long-term studies across target market segments and enhanced strategic partnerships and collaborations with influential distributors and pest management professionals.
4:25 And there’s a number of these initiatives came online at various points during the year, we expect to see their full effect in 2022. In addition to the sales acceleration tactics, we’re also seeing tailwind from favorable legislative changes, growing environmental sensitivity, and an emerging preference for clean tech choices. As we’ve touched upon in the past, a key component of this has been California’s legislation restricting the use of major second-generation anticoagulant rodenticides or SGARs. We’re seeing continued adoption in California with sales to the state representing approximately 20% — 28% of our 2021 sales. In addition, we are seeing this tailwind effect in New England, where publicity of government contracts has sparked a surge in E-commerce orders as well as in the northwest.
5:21 Another key item I mentioned a moment ago, has been our e-commerce solutions. Nearly a third of our 2021 revenue came from ContraPestStore.com, which was only launched in March — in May of 2021. And while we’ve implemented certain package and promotion discounts to spurred demand and thus impact our gross margins, we believe ultimately this will drive a longer-term purchase renewals as the benefits of ContraPest are recognized by customers. Already we have seen fairly low churn in this segment, approximately 4% monthly churn in subscriptions, for example, learning from this early success, we’ll be rolling out an enhanced e-commerce site this coming month, as well as additional incentives to drive subscription purchases.
6:12 As we’ve highlighted in our last call, the launch of our multi-channel sales and marketing blitz with the internal codename Operation Rat Race was begun late in the third quarter and has shown positive results. For those who haven’t seen it. I encourage you to look up some of our materials on the campaign, which focuses on supporting safe rat sex.
6:33 Leveraging this marketing campaign, we will continue to aggressively target key geographies such as California, as well as key industries such as agribusiness, where we’re specifically targeting poultry production, and owner operators of grain storage facilities across the United States.
6:51 While targeting key geographies and industries is crucial, are also leveraging the overall campaign to build confidence among the midst — the pest management community to make sure that the industry understands that we are a highly valuable solutions provider that can improve customer loyalty and their bottom line. But this is a results conference call. And I’m pleased with the continued growth and progress that we’ve made.
7:19 Since the end of the year, we’ve announced a number of key deployments and applications, especially government where more and more cities, counties and government customers are recognizing the growing success of ContraPest through various media reports and our sales and marketing efforts. Excuse me, these positive deployments and the media coverage around them is having a bit of a clustering effect. For instance, following the recent successful deployments in Newton, Massachusetts and Hartford, Connecticut we now have a growing number of government entities and communities into England reaching out for additional information. The same is occurring around Columbus, Ohio, San Francisco and elsewhere. And we’re working hard to convert these enquiries to customers.
8:04 On the government side also of importance is that Los Angeles County specify the use of fertility control in one of their recent requests for proposal. While it was but one RFP so far, it is quite a signal that rat control experts in government are beginning to see the value of fertility control in their integrated pest management programs. And especially valuable as they move away from second generation anticoagulants pursuant to the [Indiscernible] systems protection act. We expect this trend will continue in future RFPs and as the only EPA registered product available for fertility control and wrath. This puts ContraPest in an excellent position for further penetration at the government market.
8:51 Beyond the government segment, we continue to penetrate the Zoos and Sanctuary segment. Most recently, we announced the appointment of ContraPest at Safari West Wildlife Reserve in Northern California. Their house nearly 1,000 animals with a large array of birds, hosting small mammals and carnivores, many of which are endangered. Secondary exposure from poisons is become a growing concern in these types of environments, where non-target animals or wildlife reside. I believe we are increasingly being recognized among the influencers within the segment is ideal for addressing the concerns of rat infestations due to both ContraPest effectiveness and the lessons risk to non-targeted and predatory animals. This is probably a good place to remind our investors that few customers want to have their rat issues become public. So every press release — so for every press release, there are many many other wins that go on announced.
9:52 Transitioning to perhaps the most exciting news this call, a key market segment I mentioned a moment ago is agriculture. While our experience with agricultural applications demonstrates the efficacy and economic value of ContraPest. Our customers have been requesting an additional baiting options to target rats where they often live, specifically in rafters and other above ground locations. Were excited by last week’s EPA approval of our all new elevated bait system with ContraPest. The bait system is specifically designed to be easily deployed above ground with multiple options for mounting in the rafters of barns, greeneries, storage and manufacturing facilities. Basically wherever rats are feeding, transiting or hiding. The novel suspended bait station we created is easily accessible by rats, but out of the way of people pets, livestock, food stores and other sensitive areas. The system is lightweight and designed to permit easy drop in and replacement of our new eight ounce bottles and ContraPest, which helps to reduce servicing time and cost.
11:05 We’re particularly excited about the use of the elevated system to control roof rats, given the frequent difficulty of deploying traditional rodenticides in the areas they inhabit. The new product design and use is currently undergoing state registrations and is expected to be ready to ship to customers by mid-April, at which time it will be available in most states. We believe that sales and agricultural will be greatly enhanced and accelerated by having the elevated date system with ContraPest as an option. This is an additional tool that our sales team believes is key to explosive growth in the agriculture segment.
11:45 Let me step aside for a moment from the current results to update you on a project that continues with our partner, a non-liquid or semi solid formulation of ContraPest that we are developing with Lisa tech, a leader in semi solid dates. As we mentioned when we started this project, product development in the regulated world is controlled and precise and takes time. This is a completely new product from a regulatory standpoint. The fact that we have not commented on it publicly doesn’t signify a lack of progress. On the contrary, we’re making good progress in the area. We’ll continue to provide updates as they’re available, but expected any new product is still more than a year out. Taking into account the realistic timeline for product development, regulatory approval.
12:37 Over the past few years, we’ve been putting the structural base in place to become a commercial company. This has been no easy feat, and there have been bumps and turns along the way. That said, believe that heavy lifting is now complete. Our sales and marketing reorganization is driving product awareness and lead generation. And we have a much better understanding of how to target customers and market segments, which should drive improved acquisition, market penetration and repeat sales. We’ve added resources in high potential areas such as California and are adding even more in the coming weeks. We’ve obtained real world data and part of its target segments highlighting both the efficacy and cost effectiveness of target — of ContraPest.
13:25 The EPA approval of elevate is expected to further accelerate our penetration into one of our key and markets agriculture. And something that is clearly critical. We are seeing enhanced interest from major PMPs to begin utilizing ContraPest as part of an integrated pest management program. ContraPest is the right product at the right time. Not only does it work, but it hits on a number of key environmental, regulatory and social trends that continue to gain traction. I thank all of you for your continued support us in SenesTech.
14:04 And now let me turn it over to Tom to review the numbers.
Tom Chesterman
14:10 Thank you, Ken. A reminder to our investors the press release is available on our website in the Investor Relations section. Further we have filed our 10-K today. So here I will just touch on some of the high points right now. Revenue during 2021 was approximately $600,000 compared to approximately $282,000 in 2020, an increase of 113%. Excluding the effects of grant revenue product sales grew 123% for the year. This fourth quarter revenue was also more than doubled of revenue in the fourth quarter of 2020. This doubling trend has been sustained now for over a year. And as Ken mentioned, we see the trend continuing into the first quarter of ’22. I would go so far as to say we consider this doubling to be the baseline beyond which we can grow even further and faster in 2022.
15:05 Gross profit for the year was approximately $244,000 or 41% of total revenue, compared with $1,000 or 1% of total revenue in 2020. The gross margin improvement is driven by the fact that we had a high level of scrap and manufacturing and inventory charges in Q4 of 2020. This is also in line with our efforts to bring the cost of manufacturing below 50%. Net loss for 2021 was $8.3 million, compared with a net loss of $8.4 million for 2020. Adjusted EBITDA loss which is a non-GAAP measure of operating performance for 2021 was $7.8 million, compared with $6.9 million in 2020.
15:51 In 2021, we invested heavily in marketing and customer acquisition costs. We are continuing to invest in customer acquisition, though we carefully monitored the specific programs for efficacy and cost effectiveness. For example, we are curtailing the free shipping promotions, as rising shipping costs defeat their effectiveness. We would therefore expect adjusted EBITDA loss to continue at a pace of $7 to $8 million per annum. Cash at the end of 2021 was approximately $9.3 million. With continued fiscal discipline, this cash should be sufficient to fuel our growth strategy for over a year.
16:31 That said, as mentioned last quarter, we have filed in S3 for a renewal of our shelf capacity, which expired earlier last year. A shelf or an S3 is an SCC provision to register a new issue of shares without having to sell the offering at once, but instead to offer portions of the issues selectively over a three-year period, that is our intent to be selective about capital raises, balancing the need for resources with our shareholder interests. I would also note that there are $4.5 million warrants outstanding, over $3 million of which are near the money or expiring soon. These may prove an efficient source of capital as well.
17:12 One additional note, as you all may have seen, we recently received notification from NASDAQ of a bid price deficiency, providing notification that the bid price for common stock had closed below $1 per share for the previous 30 consecutive business days. And our common stock no longer met the minimum bid required — minimum bid price requirement for continued listing on NASDAQ. We have an initial period of 180 days or until August 29, 2022, to regain compliance. To regain compliance the closing bid price of our common stock must be $1 per share or more for a minimum of 10 consecutive business days at any time before August 29th if we do not regain compliance by August 29, we may be eligible for an additional 180 day compliance period, at which time we may need to contemplate a reverse split. It should be emphasized here that we do not need to, we’re intend to contemplate a reverse stock split during this first 180 day period. We will instead focus on the execution of our business plan and seek to regain compliance through success.
18:22 With that, let me open the call to questions. Operator?
Question-and-Answer Session
Operator
18:28 We will now begin the question-and-answer session. [Operator Instructions] Our first question comes from Sameer Joshi with H.C. Wainwright. Please go ahead.
Sameer Joshi
19:00 Yes. Thanks Ken and Tom [Indiscernible] question. And congratulations on a good year. Of course, the Operation Rat Race has been a good, big success for you. Do you have any plans to continue it to the next year? And what is the budget for that?
Kenneth Siegel
19:26 Hi Sameer. Thanks for the call? Yes, we are continuing rat race. It is plan to run through the balance approved 2022. I will defer to Tom on — on budget discussions. But go ahead Tom.
Tom Chesterman
19:47 Yes, we — we expect to the — manage this basically at the same level of overall cash burn as we have had in the past. So we’re going to be carefully monitoring both the growth of this revenue as well as the efficacy of the program to make sure that we do not surge beyond that $7 to $8 million EBITDA loss that I mentioned.
Sameer Joshi
20:09 Right, right. So when you mentioned $7 to $8 million in EBITDA loss, I’m surmising that it — you will have higher gross profit dollars and in – and that way, you can use more of those dollars for other expenses and adjusted EBITDA, I believe $7 to $8 million loss. Is that how you should look at it?
Tom Chesterman
20:36 Yes, we view it as really an investment in growth as we continue to invest as we can back into the customer acquisition and growth of the business.
Sameer Joshi
20:48 Got it. And then, you reiterated, I think you had mentioned during the third quarter call as well that e-commerce sales are roughly a third of your 2021 revenues. Is that on an annualized basis? Or from May to now? It has been roughly $200,000. Overall, about $600,000?
Tom Chesterman
21:19 Yes, actually, it’s — that is a full year effect. We’re seeing a lot more e-commerce success early on and we continue to see that growing strongly. As I think we’ve mentioned before, it was a little bit of a surprise that we did not expect quite as much do it yourself business as we’ve been getting. But we’ve also noticed that some pest management professionals and other end users are deciding to order it through the e-commerce site rather than going through one of our salespeople. So there’s a little bit of slop in there and a little bit of crossover between the segments.
Sameer Joshi
22:00 Yes, yes. And then around those — on that same topic, I think, did you mention that the subscription customers were around 10% of the customers of the e-commerce customers you have or is it that? And then how does that relate to the 4%? Just trying to understand exactly?
Tom Chesterman
22:28 Yes, I actually don’t have handy right here exactly how many of the e-commerce customers are on a subscription. And we’re getting more from the four new subscriptions. But as we look at the subscriptions, one of the key things that is on our subscription. That one where we’re seeing, approximately a 4% per month turn, which is reasonably good. As we expected — we would turn about that particular future.
Sameer Joshi
23:02 Yes, no, certainly 4% is good. In terms of the total customers — customer count if you will. I think it was around 1,200 at the end of third quarter, which is significantly up from around 500 in the second — end of second quarter, do you have a number for that now? Or are you not getting that number anymore?
Tom Chesterman
23:29 Yes, I don’t have that number handy right now. And, in fact, I think we need to relook at that, because I don’t think we were very clear about what a current customer was defined as and so as we’re continuing to increase this, we need to look carefully and make a clear definition so that everybody can understand what that is. So we’ll be coming out with that information a little bit later.
Sameer Joshi
23:55 Okay, and then just one last one on the newest addition to your portfolio? How — I think you did mention that it would be around a year before you actually have meaningful income that, but what is the size of that market and how large a portion, let’s say two years from now? We expect that product to be as a portion of your sales? The elevate product?
Tom Chesterman
24:31 So I’d — let me start first and then ken can jump in? It’s really unclear to and very difficult to separate out. What is the market for the elevate system versus what is the market for the traditional ContraPest eighth station product, because the — they really split out roughly in which or brown rats are in Norwegian rats, and which ones are roof rats, because roof rats do tend to spend more time aloft? So a little bit of it’s going to be what’s the split between those. But also there are some customers that have a Flemish strategy that may incorporate both. So I don’t think it’s really possible to prospectively say, how much of the market is going to be one product or another. They’re both ContraPest and they both have, the effectiveness of ContraPest. So we really still are looking at what is the overall market for ContraPest. We do know that rodenticides in general are being we’re spending about $1 billion dollars per annum in the US. So we know it’s a big, big market, as people want to begin to incorporate ContraPest into that. But splitting out between the different modalities and different delivery systems is probably a little difficult at this time.
Sameer Joshi
25:56 Yes, no. And that is where I was just wondering if you had something. And again, I said was going to be the last question. But I just have one more if you will. You mentioned that there was the RFP from the LA County. One so far. And you also have mentioned that your province is the only one that is approved for use there. So should we consider this a win? Or eventual win that you’re fairly confident about?
Tom Chesterman
26:34 Yeah, I think we can consider when we’re really the only one that they can use.
Sameer Joshi
26:42 Got it. Okay, thanks. And good luck for a good 2022.
Tom Chesterman
26:47 Thanks much.
Operator
26:52 [Operator Instructions] The next question comes from Avi Fisher with a Long Cast Advisor. Please go ahead.
Avi Fisher
27:06 Hi, thanks for the everything, Tom and Ken appreciate it. Ken just a quick question you — you said, just talks about the heavy lifting and I just wondered if you could clarify that. I mean, in my mind until you’re shipping hundreds of 1000s or even possibly millions of units. There’s still a lot of heavy lifting. So, what did you mean by that? What did you think? What do you think about that opportunity? Getting there?
Kenneth Siegel
27:35 Well, Avi. I hear you. And I think that’s a fair point. I mean, we have an awful lot of lifting to do and actually drive sales and what I was talking about the heavy lifting was finally having a commercial organization in place. I think as you and I’ve talked about a couple of times, when I came on board, this was an R&D company, did not have a sales organization, did not have data to support how the company upgraded, how the product operated in the field. So an awful lot of lab data. We were very weak in terms of this generation of marketing preparation of all the things that you really need to do to finally commercialize the product. And we have no dedicated sales for that, and we also had to relocate and upgrade the manufacturing facility, get that ready to scale, and bring in a more professionalized manufacturing organization. So all the basic pieces I think are in place now that actually really begin to aggressively sell the product.
28:50 And to your point, yes, there’s an enormous amount of lifting to go, we’ve got a lot of runway and a lot of ramp to get to the numbers that I think that we can get to, and I know that our investors are counting on to get to, but I really wanted to make clear that at least the basic things necessary to finally have a viable commercial organization are in place and functioning and ready to go.
Avi Fisher
29:13 Now, fair enough, you’ve done a lot of work getting those pieces in place. Just — and the manufacturing side, Tom, you mentioned the high level of scrap a year ago, I wonder if you could talk about sort of, or quantify the reduction in scrap, and kind of where you are in the manufacturing side. And — and sort of just to give me a realistic notion of kind of, if you’re shipping, 100 — 100,000 units a day or some level of unit, where you can get the unit cost down to? And how, like, relative to kind of the more traditional offering?
Tom Chesterman
29:57 Yes, sure. So the scrap I’m talking about that we’ve done, part of it has to do with the discontinuation of one of the bait box formats that we had the [Indiscernible] bait box format, which really has been — is not very popular anymore. So we discontinued that. Unfortunately, the — the nature of buying plastic tanks, is you have to buy them by the 1000s and 1000s. So this container, that meant we had to recycle a whole bunch of plastic. The other thing is that occasionally some of our ingredients, typically not the active ingredients, because they’re very stable. But some of the other ingredients do have expiration dates. So for example, as we looked at the end of the year, we might have some of our oil that we use for the manufacturing process that needs to be so these are the types of scraps and as we get better and better and as they actually the volume increases, it becomes easier to manage those sorts of things.
30:59 Taking all that together, I believe it’s — it’s quite achievable in the near term to achieve 50% of the manufacturing. And that’s — that’s with — with the all of the direct costs included, they’ll still be a little bit go else going into the cost of — in terms of cost of sales, discounts and such. So our gross margins may not be quite as 50%. There were 41% at this time, I think that we could maybe improve it a little bit. But the improvements we’re going to be doing in the — in the near term in terms of cost of manufacturing, we probably will continue to re-invest into customer acquisition in the short-term.
Avi Fisher
31:46 And, and then, I mean, I think this is generally viewed as a premium — premium product versus, traditional poisons, which you could buy poisons for $0.10 What’s it — what — just — I’m just trying to understand engage kind of where your cost of manufacturing could be at — at a higher level of scale, not whether or today but at a higher level of scale, you know, relative to that poison. And therefore, where this can be in terms of a price point that might be more attractive to clients down the road if you aiming for more ubiquity across markets and stuff like that?
Tom Chesterman
32:25 Well, the — the first thing is that the cost of poisons or the rodenticides is quite variable. You’re right. The simplest of the rodenticides are extremely cheap and were priced at about six times that amount. Some of the more advanced and more progressed like rodenticides like [Indiscernible] are much more expensive than that, and they come closer. And then if you look at the overall cost of other lethal means, like traps, and, and the like. Some of them are actually more expensive than ContraPest. So there is a wide variety in terms of the cost of the integrated pest management pieces. But getting back to your question, which is, how much more room is there in cost of goods sold to — for improvements, as it is true, as you begin to buy, particularly the active ingredients, we would expect the price to go down. I — with these particular active ingredients, I don’t have a forecast as to that sort of thing. But having done this before, I would say that you should be able to continue to reduce the cost at scale by another 20% or 30%, potentially.
33:41 Now, they would then have breakthrough ideas about how to dramatically rescale the manufacturing process and they could take it further. So I don’t think there’s an end to how much better we can get at manufacturing, it is going to be an evolutionary process. That’s what I’ve seen before. But I also don’t think that there’s a specific goal, to say that — that’s as far as you can get, and we can’t go any further.
Avi Fisher
34:08 Great. And just — just two more quick questions. Are you having any issues, getting the materials you need for the product?
Tom Chesterman
34:16 No, we’re not at this point. We’ve — we’ve taken a fairly conservative approach as anything we’ve disclosed before, one of the ingredients is sourced from overseas. Because of that, we tend to order it way ahead of time, we tend to stockpile. So we want to make sure that we have at least six months if not a full year’s worth of supply, just because of disruptions and shipping and weather and political issues. So at this point, we’re sitting, we’re sitting very good in terms of our supply.
Avi Fisher
34:51 Awesome. And then finally, one last question. And can you, it’s not quite guidance, but you did talk about your expectations for this quarter. But if you just sort of think about the step function of growth, right, you’ve — you’ve kind of stepped it up a level from where we were a year ago. And as we get deeper into ‘22, I’m just curious about your ability to continue to step it up another level. And you could talk about that either generally or with quantify sort of what kind of conversion rates you need to have to step it up yet another level, but you’re gonna have to do eventually, but I’m just thinking that 2022 of them?
Kenneth Siegel
35:33 Yes, Avi, you know that my CFO is going to step on my microphone shortly. But where we’re excited about the first step, obviously, I would say beyond hope, but we are looking to see how much further we can ramp it in ‘22. We’re excited about rat race, we’re excited about the addition of the additional salespeople, we’re excited about elevate. And while Tom said specifically, we can’t figure out quite, you know, what percentage the market can take, it really opens roof rats for us in a way that we hadn’t seen before. So there’s a lot of positive things. I’m sorry, go ahead.
Avi Fisher
36:24 But when does elevate sort of come to market?
Kenneth Siegel
36:28 So elevate will be clear, we believe of most of the state registrations by mid-April, we are doing soft launch now for marketing campaign, it really is expected to start to begin to ramp at the end of Q2. But we’re gonna do everything we can to pull that forward as much as we can. And that’s a big, it’s a both an opportunity and uncertainty right now, is a unique deployment capability. And as I mentioned in my comments, there’s nobody that has really cracked the code on deploying for roof rat. So we’ve actually got something that can be deployed it pop in, pop out, it’s a different bottle size. So, it could be the — the big change for us, but we’ll — we’ll have more to say about it, probably at the end of and the Q2, but it’s, you know, these are the various factors that give me some safe, there’s more upside here then. Maybe, we’re seeing right now, awesome.
Avi Fisher
37:42 Thanks again for the update. Really appreciate it. Keep up the good work.
Kenneth Siegel
37:46 All right. Thanks, guys.
Operator
37:52 This concludes the question-and-answer session. I would like to turn the conference back over to Mr. Kenneth Siegel for any closing remarks.
Kenneth Siegel
38:01 All right, well, again, thank all of you for the support of the company. Hopefully, as you can see every time we do one of these, we score these quarters, you can begin to see the momentum building, you can continue to see the excitement to see the new things that are coming online and a growing sense of optimism about the company. So I look forward to talking to you again and at the end of Q1, and I hope to continue to talk to you about the great progress we’re making. But again, thank you for the support and we’ll talk to you again in a few weeks.
Operator
38:37 The conference is now concluded. Thank you for attending today’s presentation. You may now disconnect.
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