TOMI Environmental Solutions Inc (TOMZ) 2020 Q4 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome to the 2020 financial results conference event. (Operator Instructions)

It is now my pleasure to turn the floor over to your host, Jennifer Belodeau. Ma'am, the floor is yours.

Thank you. Good afternoon and thank you for joining us today for the TOMI Environmental Solutions' investor update conference call. On today's call is TOMI's CEO and Chairman of the Board, Dr. Halden Shane, who will provide an overview of recent business highlights for the most recent quarter; and Nick Jennings, TOMI's CFO, who will discuss critical financial benchmarks before addressing any questions you may have.

A telephone replay of today's call will be available through April 13, 2021, the details of which are included in the company's press release of March 24, 2021. A webcast replay will also be available at TOMI's website at www.tomimist.com.

Now let me read the Safe Harbor statement. Please note that information contained within this call is relevant only to the day of which it was recorded, March 30, 2021. And you are therefore advised that time-sensitive information may no longer be accurate at the time of any replay. Certain written and oral statements made by management of TOMI may constitute forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995.

Forward-looking statements are identified by such words and phrases as: we expect, expected to, estimates, estimated, current outlook, we look forward to, would equate to, projects, projections, projected to be, anticipates, anticipated, we believe, could be, and other similar phrases. All statements addressing operating performance events or developments that the company expects or anticipates will occur in the future, including statements relating to revenue growth, earnings, earnings per share growth, or similar projections are forward-looking statements within the meaning of the Reform Act.

They are forward-looking and they should be evaluated in light of important risk factors that could cause our actual results to differ materially from our anticipated results. The information provided in this conference call is based upon the facts and circumstances known at this time. The company undertakes no obligation to update these forward-looking statements after the date of this call.

With that out of the way, I would like to introduce TOMI's CEO and Chairman of the Board, Dr. Halden Shane.

Thank you. Thank you for taking your time away from your schedules to join us this afternoon. 2020 was a groundbreaking year for TOMI, highlighted by reckoned revenues of $25 million, and net profit of $4.4 million or $0.23 per diluted share, and adjusted EBITDA of $8.4 million.

During the past year, we expanded our customer base, developed and launched new products, and saw a heightened recognition of our SteraMist branded products as the world got first-hand experience with the importance of effective disinfection and decontaminating processes.

Among the key initiatives TOMI undertook in 2020 were: the strengthening of our sales organization as well as our quality control measures, the expansion of the SteraMist product line, the addition of a manufacturer to assist with our global outreach, and the filing of new IP protections both domestically and internationally to secure proprietary design of our superior technology.

Additionally, we added a new division, our commercial division, to leverage the increased interest we are seeing in our solution, and to better identify and market to potential customers from a broad group of industries.

SteraMist continues to lead the industry with its many competitive advantages, including speed and turnaround time, high efficacy of a six log or higher kill, smallest of industry microns, superior material compatibility, versatility and application, and a ready-to-go solution free of harmful chemicals. All of which requires no wiping or rinsing and leaves no residue behind.

SteraMist technology is designed to fight the most dangerous of pathogens. It was developed to fight anthrax spores and neutralize weaponized chemical agents. And on a global front, SteraMist has fought against MERS, Ebola, and we were and still are, frontline fighter, globally, against COVID-19 pandemic. Deploying 650 machines around the world in 2020, we are prepared to help the world fight against whatever infectious disease that may come next.

Coronavirus certainly brought enhanced disinfection to the forefront of the world's objectives. After years of slow and steady growth, the first half 2020, showed revenue numbers surge for TOMI's SteraMist, as the global marketplace saw its effective disinfection solution. We believe our product is the gold standard of surface disinfection, providing the safest and most compatible decontamination solution.

While there are less expensive versions of our SteraMist disinfection product currently flooding the market, in addition to our proven safety and efficacy, TOMI continues to find ways to meet budgets for our customers and potential customers, and its referrals by our current customers who tell others about how SteraMist operating costs in the long run that assist in our growth and brand awareness.

While there are many catalysts to our business, we are focused on the long-term growth of our business rather than quarter-to-quarter performance. This has always been a company who strives for SteraMist to become the standard in its industry, educating the world in property contamination protocols. And I thank all our initial investors for their endurance throughout the years.

Looking forward, we have multiple near-term and long-term opportunities for significant growth, and an attractive razor-razorblade business model to drive long-term profitability. In the near to midterm, we are launching multiple new products for which there is a pent-up demand. And we are confident that they will help drive growth in 2021, particularly in the back half. And with our visibility today, we are targeting 40% to 45% growth in 2021 as compared to 2020.

A particular compelling new opportunity that could be a significant revenue driver is the recent award to the Epidemiology and Laboratory Capacity Cooperative, or ELC, of $30 billion, which will be used for all 50 states, several large metro areas, US territories and affiliates, for their efforts around the detection, response to control and prevention of infectious disease.

We believe that our technology is covered and eligible, and we plan on filing for ELC Awards to use SteraMist. Additionally, we will continue to invest R&D into the opportunity we see in the food safety industry, which is a large and growing longer term opportunity.

As we scale the business, it is important to remember, we have an attractive razor-razorblade model. We are investing in our growth in 2021, bringing on good people and investing in R&D, sales and marketing. But as our customer base grows and our customer base has proven to be sticky, it drives more higher margin solution sales, which in turn will drive longer term margins.

Now, I'll turn the call over to Nick Jennings, TOMI's CFO, to run through financials. And after Nick's segment, I will run through the key end markets for our product in more detail. Go ahead, Nick.

Good afternoon, and thanks for joining us. I'll be providing a brief overview of our financial results for the full-year 2020, in the fourth quarter of 2020, compared to the prior year periods.

For the full year, December 31, 2020, total net revenue was $25 million compared to $6.3 million, representing an increase of $18.7 million or 297%. Gross margins were 60.1% compared to 61.7%. The lower gross profit is attributable to product mix.

Operating income was $4.5 million compared to an operating loss of $2.1 million. Net income was $4.4 million, or $0.27 per basic and $0.23 per diluted share, compared to a net loss of $2.3 million, or $0.15 on a per share basic and diluted share.

Adjusted EBITDA was $8.4 million, with an adjusted EBITDA margin of 33%, compared to adjusted EBITDA loss of $1.2 million. A table reconciling adjusted EBITDA to the appropriate GAAP measures is included with our press release that was issued earlier today.

Cash provided from operations for the year ended, December 31, 2020, was $4.6 million, compared to cash used in operations of $814,000 for the year ended, December 31, 2019.

Now, for the fourth quarter, total net revenue was $3.7 million compared to $1.9 million, an increase of 95%. Gross margin was 58.9% compared to 56%. The higher gross margin is attributable to product mix.

Operating loss was $2.9 million, compared to an operating loss of $0.5 million. The increased loss is attributable to non-cash equity compensation expense charge incurred in the fourth quarter in the amount of $2.8 million.

Net loss was $2.9 million, or $0.17 per basic and diluted share compared to a net loss of $0.5 million, or $0.03 per basic and diluted share. Adjusted EBITDA was $0.1 million compared to an adjusted EBITDA loss of $0.3 million.

Looking at a few key balance sheet items. Cash and cash equivalents were approximately $5.2 million at December 31, 2020, compared to $0.9 million at December 31, 2019, an increase of $4.3 million. Working capital of $11.5 million at December 31, 2020, an increase of $12.3 million compared to 2019. Shareholders' equity of $13.2 million at December 31, 2020, compared to $0.9 million at December 31, 2019, an increase of $12.3 million.

Now, I'll turn the call back to TOMI's CEO, Dr. Shane, to provide details around each of our divisions.

Thank you, Nick. I'll now review the key parts of our business and strategy in more detail, starting with healthcare.

In the wake of this pandemic, the healthcare system realized the importance of enhanced disinfection. In 2020, there were large healthcare, multi-unit purchases, and the BIT Solution orders continue to rise.

North East Medical Services purchased 12 Surface Units and purchases palettes of solution regularly. Gila River Health Care services their healthcare community regularly with 12 Surface Units. Merakey Behavioral Health and Greystone Park Psychiatric Hospital, each purchased five SteraMist Surface Units to implement throughout their facilities.

With this ease of use and ability to contain all aspects to quickly deploy throughout all areas of the facility, the SteraMist Disinfection Cart, which was launched in 2019, has become a popular package for the healthcare industry.

In 2020, St. Luke's Healthcare Systems purchased a cart and publicly praised SteraMist for the quick deactivation of pathogens with little dwell time, shortening room turnover times. St. Luke's Boise utilizes SteraMist in their emergency department and patient isolation rooms, while planning on expanding to their OR suites and C. diff patient rooms in the near future.

The Geisinger Health System purchased and deployed eight SteraMist Disinfection Carts, packages, which they deployed throughout different locations in the United States. SteraMist was a key component disinfecting triage tents at Geisinger. Similarly, Marion County Health and Hospital Corporation utilized SteraMist to disinfect COVID testing tents, and later for disinfecting the tents during COVID vaccinations for the first responders.

Bon Secours Mercy Health with 50 hospitals, 1,000 points of care, and over 60,000 employees across seven states and two countries, they have multiple SteraMist Disinfection Cart packages throughout their operations being used for C. diff, isolation discharges, ORs, daily terminal cleans, and patient rooms as deemed necessary.

Additionally, we see growing demand for senior living facilities as they enhance their disinfection protocols, which include adding SteraMist. The Villas Senior Care Community purchased SteraMist to bring back their business after a COVID-positive patient identified through contact tracing. Due to success of SteraMist at their facility, they marketed by highlighting their use of SteraMist disinfection throughout their facility via commercials and billboards.

Another senior living facility, Providence Life Services Senior Living purchased a SteraMist Surface Unit in June. And due to the success of the unit, they later added three more Surface Units in October of 2020.

We continue to strive for SteraMist in everyday protocols, for not only COVID, but the control of transference of pathogens such as C. diff, MRSA, and all of the pathogens, non-resistant and resistant healthcare-associated infections.

We anticipate continued growth in our healthcare division in 2021, as hospital healthcare facilities review or adopt mechanical cleaning in lure or in combination with manual spray and wipe techniques, to address daily disinfection needs and in preparation for potential future outbreaks of pathogens.

The COVID pandemic has led to a new robotic method of enhanced disinfection worldwide. TOMI has endorsed this method and has been diligently designing and testing on multiple different robotic models for a variety of applications.

The SteraBot will leverage the latest technologies in automatic guided vehicle, helping to vastly reduce direct human exposure to dangerous pathogens. Prototypes are undergoing early-stage trials at various international locations in the EU and Hong Kong.

In another development, our long-term customer, Dana-Farber and MIT in Boston, published an article on the research studies and protocol developments of the decontamination of N95 masks and face shields. This protocol is under review with the FDA, and allows for the disinfection of 2,000 masks in two hours.

I am frustrated and disappointed to report, there still remains no timeline for the approval by the FDA for the re-processing of personal protective equipment, including N95 masks. TOMI's BIT Solution's SteraMist technology has passed every benchmark that the FDA has instituted. TOMI's personnel is dedicated to this endeavor, patiently continues to work closely with the FDA, our consultants and partner hospitals around the United States on the Emergency Use Authorization to treat N95 respirators and PPE with iHP, ionized Hydrogen Peroxide.

For your additional background, SteraMist technology was developed by a government agency, DARPA, and is used throughout many federal and state government agencies, with several being onboarded in 2020. We may not name these agencies at this time. But please take note, SteraMist is being deployed in some of the country's most secure, important, and highest of political arenas.

Life science. SteraMist's life science continues to remain a strong division for TOMI, as SteraMist upholds GMP standards and provides a quick turnaround time resulting in cost savings. These long-term partners have purchases of multiple units, permanent decontamination rooms, and/or have routine, iHP Corporate Service conducted.

SteraMist has also been implemented into multiple pharmaceutical drug manufacturing companies, cell and gene therapy, and manufacturers that are producing the COVID-19 vaccines. There has been a high interest for our iHP Custom Engineered System, a permanent, fully automated decontamination room.

Many of the negotiations for implementation of this product have reconvened, as businesses were shut, or on light operations due to COVID. TOMI expects to install a few of these large projects by the end of 2021, and others in 2022 and beyond.

As we have mentioned previously, the 2020 restrictions on visitation and traveling, both domestic and international, has placed the majority of our iHP corporate service operations on a temporary hold. Now that restrictions are being lifted, iHP service is supplied and ready to deploy at a moment's notice with regular iHP treatments starting to get scheduled throughout 2021.

In spite of the hold, service-based revenue showed an increase of 53% in 2020. This increase in our service-based revenue was attributable to higher training sales recorded in connection with onboarding new customers for the year.

Our research and development partnership with a safety cabinet manufacturer, which produced a custom decontamination solution, has resumed field testing at a federal government site. As reported, we are successfully meeting their needs in less than 10 minutes without damaging any material or research on the highly sterile environment involving germ-free research. We anticipate many additional purchases of our SteraMist Select Surface Unit, and stainless steel 90-degree applicator after testing is completed.

Finally, the Select Unit, or our complete room fogger, the environment system are designed to work with newly launched SteraBox products. The SteraBox uses our stainless steel 90-degree applicator and has a one minute and 30 second injection, 10-minute dwell, and approximately 20 minutes aeration. SteraBox comes in two sizes and can be designed with one door to act as a chamber, or with two doors when a pass-through is needed.

TSN, the TOMI Service Network spans the United States and Canada and is at the forefront with SteraMist combating the spread of viruses, conducting routine, and emergency disinfection, the odorization, fire mitigation, mold remediation, and biohazard cleanup. Our TSN service providers have treated establishments such as stores, fast food restaurants, data centers, education, aviation, large Internet companies, commercial businesses, and residential homes.

TSN currently is made up of hundreds of direct end users who purchased SteraMist, and has proven to be a key division to address the demand for disinfecting and decontamination services during the outbreak of 2020. We anticipate that TSN will continue to service their customers with SteraMist.

As commercial businesses update their infection control procedures and requirements, thus providing their customers superior disinfection against the coronavirus and other pathogens, TOMI's customer experience team continues to support all members daily, increasing the percentage of members who are routinely using SteraMist with much success in assisting their local communities. We are looking forward to our BIT Solution sales increasing significantly because of these dedicated members in 2021.

The ease of use, mobility, and powerful disinfection has made the SteraMist Surface Unit has been the most popular machine in the remediation industry. And TOMI has made strides in the development of new products.

The soon-to-be-released SteraPack, a backpack solution, is battery-operated, approximately 27 pounds, and houses a permanent applicator to distribute BIT Solution to surfaces. We expect that it will be a nice complement to the addition of the SteraBot and SteraBox family of products. The SteraPack is expected to bring in additional revenue in 2021 by current and new TSN members, while focusing on large memberships of professional cleaners in ISSA.

This new product is expected to compete effectively in the marketplace, regaining market share against electrostatic sprayers and comparable competition, by bringing a superior efficacy device that is a cost-effective and noncorrosive answers to these industries. We, at TOMI, are grateful for our extensive service network in the United States and Canada, and they -- part they play that they're innovating for a safer world.

Food safety. Food safety focuses on the disinfection of facilities used for food processing, storage and transportation. As food manufacturing has been increasingly regulated to higher standards, much like the pharmaceutical sector, we see tremendous potential for growth in this division. TOMI is well positioned to provide protocols, structure, and products to help companies meet increased scrutiny by regulators and consumers.

SteraMist is fully approved for use in food processing, restaurants, warehouse, and packaging facilities. Currently, direct application onto food products and seeds requires EPA, FDA registration. And TOMI remains dedicated to working alongside Arkema, to research optimal dilution ratios that will give us the ability to create the required 1% aseptic grade solution. Once this mixture is achieved, TOMI remains confident, and we are poised to become a global solution for growing food safety concerns.

TOMI is making a push towards seed testing to mitigate crop pathogens, working with ASTA and the USDA, to clear seeds of any high-risk contamination. The FDA and FGIS, Grain Inspection Service branch, are cracking down on seed companies to have a better plan under global food safety initiatives to eliminate the risk of food bacteria such as listeria, which is grown in soil. Barrels, bins and totes coming in from the field, should be using SteraMist to eliminate soil pathogens, and from first harvest of cross-contamination into further harvest.

Two weeks ago, the TOMI team started working with a seed physiologist at a vegetable seed company ranked number four worldwide. We tested radish seed infected with a bacterium that causes plant disease, and sweet corn seeds with Fusarium infection. Sweet corn is produced and sold in large quantities. And we are working to reduce or eliminate infection percent of these seeds by applying SteraMist, as the seed moves on a conveyor. We are currently working for data on the kill of the bacteria and on any germination characteristics.

Commercial. Our commercial division includes aviation, aircraft, air traffic towers, prisons, manufacturing companies, automobile, marine, education, police and fire, regulatory consulting agencies, retail, housing and recreation, and of course, state emergency preparedness for counties and cities to use SteraMist throughout their community.

For example, in the emergency service vertical, Bensalem Emergency Medical Services of Pennsylvania was so impressed with SteraMist technology. After a purchase of one Surface Unit, they recommended and facilitated the purchase of a unit for their county, the city of Chester in Pennsylvania, started with one Surface Unit, and quickly purchased a second unit in December of 2020.

We anticipate this trend to continue with our current and potential new customers, as fire and rescue protocols continue to expand. Likewise, a SteraMist advocate, the Director of Emergency Communications at Frederick County Emergency Services became a facilitator for the purchase of Surface Units to surrounding area operations at the city of Frederick.

Carroll County Emergency Communications Center, Walkersville Volunteer Fire Company, and Walkersville Rescue Company, the Director stated that he would continue to support SteraMist and help create awareness throughout the area's counties.

Looking at school systems in October 2000 (sic - "2020"), Westside Community School District in Nebraska reported a low COVID infection rate when at 50% capacity. The district, which is comprised of 1,000 faculty and 6,000 students, is now at 100% capacity and they continue to report low infection numbers. The district uses SteraMist beyond COVID prevention. They also disinfect with SteraMist to treat for MRSA and staph infection prevention widely present on gym equipment. Prior to SteraMist protocol, the district experienced an outbreak during wrestling season.

TOMI continues to strive to gain traction in the airline industry. The FAA has a mandate that no hydrogen peroxide or fogging applications are allowed on aircraft, a decision related to studies conducted with an accelerated hydrogen peroxide chemical, not SteraMist, that caused components in the return air duct to become embrittled.

The same product caused paint to be stripped off, and metals and corrosions to thermoplastics, even though SteraMist has 100% compatibility with these materials. The other product findings pushed disinfection from ground cleaning to aircraft maintenance classification, which put it into a safety of flight category, a more conservative oversight.

TOMI is working with a senior Boeing engineer to disprove these concerns. We are securing the specific material types, and we will work with a third-party lab to conduct a saturation and material compatibility test. We are meeting with the ATS, who has ties to the FAA and aerospace to outline the test and schedule the study. Some EU aircrafts are still currently utilizing SteraMist without any issues.

In the mining industry, American Consolidated Natural Resources, or ACNR, who manage 49 million tons of coal per year, a 24/7 operation, deployed nine Surface Units across the US mining locations. Application is expected on all high-touch surface areas throughout their plant operation facilities to include common areas, locker rooms, bath house, offices, dispatch areas, et cetera, in between each crew shift change and up to three times a day. We expect ACNR to become a large BIT Solution purchaser.

TOMI has completed the final installation of its Custom Engineered System early in 2021, the automated complete decontamination room at its Maryland operations center, TOMI's corporate office. This system software contains all possible configurations to our CES product line and serves as a demonstration unit to potential future customers. In addition, the TOMI CES may provide additional revenues in our iHP corporate service division as we decontaminate local emergency, and community vehicles, and equipment.

To close, we believe that disinfection will, and should be, a line item on all budgets going forward in both public and private sectors, and that SteraMist provides the best disinfection solution. Dangerous pathogens will still present themselves long after we recover from this pandemic. While the United States and other parts of the world are presently moving beyond this pandemic, there are many pathogens, some of which are respiratory in nature, that represent a looming threat. Preparedness is the most important measure to mitigate their effect. We learned this first with Ebola, then with MERS, and yet again with SARS CoV-2. SteraMist can and will reduce the impact of the next pandemic.

Not only are we energized by our existing partners and potential customers in private industry, we also believe we have a significant opportunity ahead with the rollout of the ELC to all 50 states, large metro areas, and US territories, as I detailed earlier. The focus on the ELC Cooperative Agreement is to strengthen core public health program growth, while providing crucial flexibility needed to address emerging infectious disease issues. We believe our technology is covered and eligible for the response and control of infectious disease. With the recent addition of our Vice President of Sales, we plan on filing ELC Awards to use SteraMist for the further combat of COVID-19.

2020 was a transformational year. The COVID-19 pandemic was an outlier that expanded the SteraMist brand. And we have and expect to continue to take advantage of this growth by continuing substantial progress in business, develop initiatives, securing our new channel, conducting research and development, instilling new product designs, protecting current and new intellectual property, and finalizing the many ongoing product registrations for all our divisions.

Our growth should be measured, as I've told you all, investors before, on a long-term financial performance year over year, as we continue to build brand awareness and strive to become the leader in decontamination. Once again, we do not measure our growth on short-term financial performance or sequentially.

TOMI's customers are also great referrals for the advancement of our SteraMist technology in the marketplace, and they value our hands-on outstanding support, and promote TOMI as a company. With the launch of the SteraBot, SteraBox, and SteraPack, we are targeting revenue growth in 2021 to be 40% to 45% stronger than 2020.

The development of these new products demonstrate even further the versatility of our superior technology. And with the onboarding completed for our new experienced internal sales department, we now have the bandwidth to add to our sales force to continue our market awareness and customer penetration by following up on the hundreds of interested parties we have in our pipeline. We are optimistic as we enter 2021 that we will see continued growth in market share.

I want to thank all of our TOMI team members who deliver quality service every day to our customers domestically and across the world. And finally, I want to thank everyone that has joined our call or listened to our call over the Internet today. Stay tuned for good things ahead. TOMI strives and will always strive to innovate for a safer world.

Operator, we're ready to take questions.

(Operator Instructions) Pamela Prince.

Hi, thank you very much. First, congratulations on a strong year. Could you give us a little more insight into how we should think about the razor-razorblade model longer term? Specifically, how should we think about the margins on the equipment versus the SteraMist?

Sure, Pamela. I'll have Nick answer that.

Hi. Hi, Pamela, this is Nick. Yeah, to answer, I guess, the second part of your question, first, really, the margins generated from the sale of our SteraMist BIT Solution are stronger than that of the margins that are generated from the sale of our equipment. So really, if you're looking at this long term, as we have spoken about in the past too, is, as we add customers and more machines are in the field being used, our solution revenue will go up.

And really, what we anticipate is our solution revenue as a percentage of the global revenue could increase and -- which would lead to potentially larger and better margins than what you would see now.

Also just to add to that, Pamela, we have a lot more equipment in the market, both domestic and globally. That's going to be utilizing a lot more solution going forward. As we develop and put more equipment into the marketplace, solution usage would be much, much greater.

Thank you. One quick follow-up, if I can.

Sure.

How should we think about R&D? Will it stay at similar levels, or will it come down after you launch the two new products in 2021?

We, probably, will be increasing our R&D. We've learned that this technology has an amazing ability to be incorporated into many locations, including built-in into complete buildings, which was the real foundation of where it came from -- the DARPA program. So we will be following up with R&D.

We plan on developing our CES, our complete room, into various packages that would be readily available to public and private sectors in various divisions. And developing our Backpack into many different types of usages for different, specific specialties. Thank you.

Thank you. Very good. Appreciate it.

(Operator Instructions) Alexandra Hicks.

Good evening. It's Alexandra Hicks from Harbor Management. My first question is, what will be the approximate price point on the SteraPack? And how does this compare to the pricing of your current product?

So our Backpack will be priced competitively. We have not put the exact price. It's somewhere, going to be, around the $6,000 or under price point, which will be very competitive to the large electrostatic spray market that has been having its issues with consumer recalls because of Backpack -- batteries exploding and fires, et cetera. So we believe we'll be able to seek and go after that competition with our pricing on that.

It compares to our Surface Unit and Environment Unit, which will be totally different animals per se, because -- therefore, much longer use, greater size of space to be decontaminated, and greater applications for multiple verticals. But it'll be probably about a third of what our current price is on our Surface Unit.

Great, thank you. And just one follow-up question. International revenue did not see growth that your domestic revenue did in 2020. And do you plan to focus on international expansion going forward?

Most definitely. We are currently creating service centers, both in Europe and Southeast Asia. We are hiring various professionals in different verticals to represent us as representatives for the product, both the manufacturing reps and direct reps, in all parts of the world.

Plus, we're going for various other types of product registrations in parts of Africa, and the areas that we haven't normally been in, and into South America and Central America. So most definitely, our plan is to expand our global footprint going forward in 2021 and beyond.

Perfect, great. Thank you so much.

You're welcome. Thank you.

Thank you. There are no further questions in the queue at this time. I will now turn the floor back to management.

Well, thank you all for joining again, and hope everybody has a wonderful week and holiday. Thank you.

Thank you, ladies and gentlemen. This does conclude today's conference call. You may disconnect your lines at this time and have a wonderful day. Thank you for your participation.