Greetings and welcome to the Vuzix Second Quarter 2015 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. Now I would like to turn the call over to Andrew Haag, Managing Director and Partner at IRTH Communications. Mr. Haag, you may now begin.

Good morning everyone. I would like to welcome all of you to Vuzix's second quarter 2015 financial results conference call. With us today are Vuzix's CEO, Paul Travers and the Company's CFO, Grant Russell. Grant and Paul, I would like to congratulate you all in your new facility and I can’t wait to get out there and see it. Before I turn the call over to Paul, I would like to remind you that this call and management's prepared remarks contained in it have forward-looking statements which are subject to risks and uncertainties and management may have made additional forward-looking statements during the question-and-answer session of this call. Therefore, the Company claims the protection on the Safe Harbor for forward-looking statements that is contained in the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors not limited to, general economic and business conditions, competitive factors, changes in business strategy or development plans, the ability to attract and retain qualified personnel, and changes in the legal and regulatory requirements. In addition, any projections as to the Company's future performance represent management's estimates as of today August 14, 2015. Vuzix assumes no obligations to update these projections and in the future as market conditions may change. Last night, the Company filed its 10-Q with the SEC and afterwards issued a press release announcing its financial results. Participants, in this call who may not have already done so may wish to look at those documents as the Company provides a summary of these results discussed on today’s call. Today's call may include non-GAAP financial measures when required reconciliations to the most directly comparable financial measure calculated and presented in accordance with GAAP can be found in today's press release which also is available at www.vuzix.com. I would like to now turn the call over to Vuzix's CEO and Founder, Paul Travers, who will give an overview of the Company's business activities and developments during the second quarter of 2015. Paul will then turn the call over Grant Russell, Vuzix's CFO, who will provide an overview of the Company’s key financial performance and operating metrics. We will then turn the call over to Q&A. Paul?

Thank you, Andrew. Hello everyone and thank you for all joining our call today to discuss Vuzix’s second quarter results. We achieved a lot important milestones over the second quarter and there is a fair amount of stuff in here. So, I will try to be prompt to get my way through here, but let me start with some highlights. Vuzix has to continued to grow our relationships in collaborations with companies like Intel, SAP, Lenovo, as well as many others, some of which I will highlight a bit later in this update. Our M100 Smart Glasses initiatives have continued to move forward from test and trial programs to early program rollouts with the pace of integration and account uptake continues to grow that has been a little slower than expected from our larger customers. We have found a direct correlation between customer size and integration duration which clearly the larger customer is taking more time to get through the process. That said, we’ve seen the used cases development in eight major vertical market categories with some amazing results. These include categories like quality assurance, training and onboarding, field service, basic two-lay video communications and on Think Mobile Skype video calls kind of thing. Warehousing and logistics with examples like DHL and Rico showing improvement, efficiency improvements of as much as 25% to 30%. And in the manufacturing space with the most recent example in Airbus cabin refurbishment with Airbus showing that the time spent per aircraft on marking operations is divided by six and air rates being reduced to zero. That’s an amazing improvement in performance. They found that even newcomers after a short training session can now be entrusted with the activities. So that’s a big plus for them. And then finally in telemedicines with companies like Oculus,…

Thanks, Paul. Good morning everybody. Before diving into the section of the call, I would like to point out that I will be rounding many of the discussed numbers to thousands and occasionally to millions even though we do currently report in dollars. Okay, total revenues for the second quarter ending June 30, 2015 were $420,000, down from $723,000 in the same period in 2014. The decline in revenue was primarily due to the planned phase out of the company’s Wrap products and the absence to revenues from Engineering Services. The Wrap video iWear products have been sold for video viewing, augmented reality, and virtual reality applications. All of these Wrap 1200 product models were effectively phased out early this year and we had very limited quantity left for sale in our second quarter as compared to the 2014 period. As a result, sales of video iWear AR and VR products decreased by over 74% compared to the comparable period in 2014 and represented just 16% of our total revenues for the second quarter. As the new iWear video headphones are not yet in production, we did not have replacement models available for the discontinued Wraps. Monocular smart glasses represented 84% of total product revenues for Q2, 2015 as compared to 60% in the 2014 period. Sales of the M100 smart glasses were flat for the quarter as compared to the prior year showed some important trends in terms of a seen more repeat orders from existing customers rather than primarily first-time single-unit purchasers. We recorded no sales from engineering services for the three months ended June 30, 2015 as compared to $113, 000 or 16% of total sales in the same period in 2014. We had no open orders for any further military-related engineering development services and are focusing…

Thank you, Grant. Nice job. We are well positioned – I’d like to offer some closing thoughts here. We are well positioned in a space that is in its early stages and many see as multi-billion dollar market. We see this not only in various industry reports and analyst projections, but also in the corporate transactions that are occurring in the form of investments and bios. I am sure you’ve all seen them. We are highly confident that Vuzix is well positioned here. We are well capitalized for success and we look forward to updating you on our continued progress in our next call. We’d like to now open the call for questions.

[Operator Instructions] Our first question is from the line of Jay Srivatsa with Chardan. Please go ahead with your question.

Thanks for taking my question. Paul, in Q2, it looks like the M100 sales was roughly flat. First is, the question was, was there any delays in the orders? And two, how do you see the second half outlook for the M100?

Good question, Jay and yes, it was relatively flat. However, if you look at the characterization of the sales, it was for the most part, made up of repeat orders and programs that are going live. That said, the larger accounts that we are working with are just taking longer to get this done than we had anticipated. I think in some cases, then even partners we are working with had anticipated. We had a pretty – what I thought was, pretty good visibility into the second quarter, but it’s just a length of time that has taken some of these guys to come on board. That said, we anticipate still the M100 to do reasonably well through the fall of this year. As Grant had mentioned, revenues for the second half are still going to be strong, they won’t be as strong as we originally think that they are going to be strong.

Okay. And then on the M3, you are working with Intel on, it looks like there has been lot of progress made, what’s your sense in terms of timeline for a commercial launch and when does the M3 really start to become material for you?

It will be in the first half of next year.

Okay. And then, go ahead.

Just to clarify, the M3 is the Vuzix’s product and we have an Intel CPU inside. It’s not a direct product collaboration officially. I just want to…

Right, let me also offer that, it’s a series, there is actually two products in the mix. There is a non-see-through product which is much like the M100 today and there is a waveguide based version of it and clearly the plans here are going to be the waveguide based is going to be more expensive.

Right, right. And then in terms of your progress towards additional capacity, what are some of the unit increases you are positioning yourselves to and do you feel that there is enough orders and demands in the books to justify that?

Okay, so, I am not entirely sure the question here, you are talking about current product or are you talking about where we are heading with the waveguide side of the business, Jay?

The question has, it’s on aggregate, as you look at increasing your capacity, the question is, do you feel like you have enough demand in the books or if you have enough visibility as you expand the business?

The expansion of the manufacturing of our current products is, I believe more than justified. We’ll have no problems selling the products that we are building today and the inventories that we are building out for those. The expansion of the waveguide, the facilities that we are building here in Rochester are about next-generation products and Jay, we as does much of the industry, we anticipate significant demand for these products especially once they start to have that look and feel of an style sunglass or fashion glasses. So part of this expansion is based upon the future needs of a industry that’s coming where we believe this is going to be in a big way based upon not just Vuzix’s input, this is from our – some of our partners and third-parties and the other portion versus are our current ongoing business.

Okay. There has been some rumors about Google coming back with its next version of Google Glass 2. What are your thoughts on that? And how do you see that playing out and if – do you expect any impact to your business relative to that – help us understand how you see the competitive space now?

So, we’ve heard also rumors about glass coming with an next-generation of a Glass 2. The rumors that we tend to be hearing is a cautious move. We think it’s a great move on their part, we love to see them in the business because it just raises, yet again everybody’s interest in the category. We think Vuzix, number one, we started the industrial space, we are ahead of anybody in this space today and understanding what the customers’ needs. Not only that, we have a footprint in the industrial space that is stable and growing today. Our customers like the fact that we are there for them. No company likes to invest several million dollars or millions even in a test program and these early trials and writing all this software, only to find out that it may or may not be there as a solution in the end. And, Vuzix is committed to this space and many of our customers see that and because of that, they like working with us. We have strong partners at the same time and so, some of these bigger tier ones, I think feel pretty comfortable with Vuzix. So, it does have some impact today, I will say because, some of our partners are coming to us and discussing the fact that, that are potentially coming with some wagon or such not, but this will – today it is not yet impacted Vuzix and where we are going except in a positive fashion, the rumors.

Okay. Last questions for Grant, on the margin side, do you expect margins to get back to the previous levels given some of the manufacturing overheads and some of the software stuff that hit the margin line in Q2?

That will improve. Clearly, we’ve got the ongoing software amortization. I mean, that being spread over three years. The minimum royalties, to be honest, it looks like we stopped the inclusion of that product in the next year. So, I mean, that would pull that up, but a lot of it’s volume-related. I don’t think we are going to get to the – a net 40% overall gross margin yet for – at least till after the year from now or so. But it will improve, I mean, that be single-digits is something we never want to see again.

I would add to that, it’s only get better if the volumes grows, Jay and we anticipate the volume to grow significantly over the next year and a half.

Thank you. Good luck.

Thank you, Jay.

The next question is from the line of Matt Robison with Wunderlich Securities. Please go ahead with your question.

Hey, thanks for taking the question. I was hoping you could comment on the mix of the inventory increase and what we should expect for the current quarter? And how that relates to what you are talking about for the fall?

Okay, at the end of June, on our balance sheet, we had just a little under $1.1 million of inventory and then we had another $850,000 in related component deposits, prepayments with our – some of our vendors. I would – that could potentially increase by as much a further $1 million. So we’d be getting close to $3 million with the – at the end of September. The iWear is just going to be getting ready to shipped. We made commitments for the components and will be the M100 B that will be coming under production. So, some of these vendors, particularly Asian ones, they require deposits of up to 50% down. So – and their lead times can be two to four months. So, we’ve had to make these deposits. So that will be about the extent of it then after that, it will decrease and then we’ll have a more steady supply chain.

Okay, so, this – in terms of mix, that’s pretty much, it’s largely M100 as opposed to iWear at this point?

At the end of September it’s probably going to be – it will be 60% iWear, 40% M100. Of that, that’s made up $3 million bucks at this time?

Okay, understood. So you are basically building inventory now to this demand you expect to see in the fall? And how this relates to – how does it relate to backlog?

First part of your question, some of the – because of the lead times, and because some of the Asian manufacturers that we have to prepay their orders. So if they need to order something, all they way down the supply chain, if you want to order something that takes three months to get. They effectively want 50% down with order and then the balance of 50%. So we are – and some of those monies that gone out there literally deposits and the components are still in the process of either flowing in or have flowed into our – some of our contract manufacturers. So, it’s not all parts that are just currently, sort of sitting around and as far as the backlog, I mean, we currently tend to build to our internal forecast and because of the nature of products, particularly consumer products, you can have necessarily an outstanding order on a brand new product, get them like four or five months ahead of the actual order dates. So we are building that based on forecast, which, as a nutshell is effectively on spec. We are confident we are going to be on a move with them but we do not have matching orders for all that product at this stage.

Are you giving backlog for the iWear, the M100?

It’s growing, yes.

Okay, thanks, Paul. That’s it for me.

Our next question is from the line of Aaron Martin with AIGH. Please go ahead with your question.

Hi, good morning, guys. I appreciate a lot of the detail you put in the prepared remarks. I want to dig in a little more on the M100 pipeline, you specifically said, you had two pilots with SAP that are converting and then you talked about other – I know, the larger guys are taking longer, but on the smaller guys that you are getting conversions, I just want to clarify that in addition to the two you had with SAP, you have in conversions on the other smaller guys with direct sales.

That’s correct, Aaron. But, you have guys like XOI that have actually three or four programs that are with larger targeted on their side, that are going live. And companies like Oculus in their upright are buying, in modest, but growing volumes and we know the customer base that you are selling to. So, we have pretty good insight as to where they are going.

How do you find a larger or some smaller customer action when you think about these things?

Well, I mean, if it’s a value-added reseller, even though, they might be selling to a tier-1 in some cases. We, in our mind, we put them in the smaller category, yet, if we are selling direct to a larger player, then it’s a – to us, we view them a s tier in many cases it’s tier-1.

But in terms of what’s – number of units, when you are classifying small or larger customers, what those – small opportunities versus the large opportunity?

I would say, the smaller programs are between 500 and 1000 and guys that are going to be – the bigger guys are 1000 to – in some cases it could be 20,000 or 30,000 pieces.

Okay, so almost smaller ones that you are saying are getting reorders, so those reorders are on the order of tens of them that kind of eventually over time become 500 to 1000 to that one customer?

In some cases, they’ve turned into between 50 and 100 to the one customer 100.

Yes, some of those indicators, 500 to 1000 is coming shortly. So you we have them six month annual 12 month forecast. Some of them are turning up those kind of numbers. But, great if we – to get the business.

Now I guess, to move on to the internal relationship which you did give us a lot of details on. You said now you are working with the amount of purchase order basis. Did you have any revenues from them in Q2 on a purchase order basis?

Yes, we do.

And how should we think about that in terms of going forward? What the – you are not considering that engineering services to what you are doing with them, you are classifying that as product revenues?

We are basically delivering products to them, yes.

Okay.

And now it’s, I mean, hope Paul could comment, I mean there is a good size program going on that started this summer which is pretty substantial, I mean, the scale of all this will clearly get disclosed under 10-K at the end of the year when we are required to report revenues with related parties, but at this stage, I mean, Paul, do you have anything more to say?

It’s reasonably healthy six-figure kinds of numbers, I guess to quantify it.

So, I mean, obviously, should we look at that as an indication of us getting closer to the launch of a commercial product if your work with them is getting, now that purchase orders are going up?

I really can’t – I really can’t comment on that, Aaron, sorry.

Okay. In terms of the technology side on the waveguide, what are the grading factors, in terms of getting the commercial product out with Intel? Is it more waveguide upgrades, is it integration work with Intel Technology? What is the grading factor?

Those are all really good questions, Aaron, but…

Maybe – let’s just take on the waveguide. Are there – in terms of – let’s set away from Intel, in terms of obviously you are going to - increasing it but in terms of the current waveguide technology that will be in your facility, so it’s operational another year, is the technology today good enough to get up to where we need to be for even the consumer device?

Here is an example, the M3000 is using the waveguides and that we’ll be shipping with them. The waveguides are operational today, Aaron, we have some of the smallest display engines in the world ever built to drive them and they are being designed into devices at Vuzix as we speak.

Okay, I would go back.

We can always introduce today, although our volume manufacturing capabilities are – they need this new facility completed to really get to that point, in the high volume is coming.

Okay, but in terms of – if there is an issue of scaling to a larger scale or it’s an issue of modifying the technology?

No, the technology works.

Okay, going back to the pipeline, some of your smaller trials, are you effectively giving away the M100 to some of the smaller trials – we are not showing that or showing at the revenue or all the trials, be trials?

It’s very rare that we give one away every now and then happens, but, I will say, sometimes we offer a discount, kind of the same to get people in the game, but, it’s rare to give them away.

Okay, thank you very much. Congratulations on the progress.

Yes, thank you Aaron.

Our next question is from the line of [Indiscernible] Please go ahead with your question.

Hello Paul. Hello, Grant. I’d like to congratulate you guys for making much progress with the past six months. I have three questions. The first question is regarding the M300 or M100 line. I was wondering, if some of the customers are holding out or M300s instead of massively adopting M100?

So, some of the bigger customers that we are dealing with have facilities that requires certain radio stands to operate with et cetera. They also have facilities that were run on the 2.4 bands on the M100 stay and those biggest players like, I would really like to rollout with this single solution that solves the problem across all my facilities. So we do get pushback on the customers, but it’s primarily related to the ability of the M100 currently not being able to match some of the facilities that they have. I think, you’ll get some pushback in that.

Okay, thanks. And the second question is regarding the M3000. Is there like AR2000, the monocular device or is it the larger? What kind of price points are you looking at?

\Those were…

I am sorry.

Yes, I was wondering what kind of price points are you looking at the M3 series - M3000 and M300?

So, we haven’t gone public with pricing just on it and honestly, there is a lot of strategy that’s going into that aspect of it. I will say that the 3000 is clearly going to be more expensive than the 300 for various reasons. I mean, it got capabilities that you can do that you can’t with a non-see through system, one. Number two, they are very similar products from the perspective of – it got a 2.3 or 2.8 gigahertz processors in them. They have the same processor engines that are running the same OS, et cetera, but one of them clearly is designed with our waveguide at the same time the results – and they are smart, unlike the M3000, it was not a smart, but it should plug it into something else, I am sorry, the M2000, thank you. The M2000 required, some brain at some place, like a computer or something to plug into it. These guys are small little gizmos they clip on, they are ruggedized and they are full up smart. Did I answer everything there? Ph, by the way, just a point to make here, the reason why we are going with the 3 series instead of the 2 series like an M200 which you would think would be the logical next step is because of the confusion we think that that with our modeling numbers, that the M2000 would create in. So we just made the jump and said look, this is the M3 series of products. M300 and M3000. The M means monocular and that 1000 versus the 100 is non-see through versus waveguide base.

Thank you.

Our next question is from the line of Alpash Patel, a Private Investor. Please go ahead with your question.

Yes, hi, thank you for taking my call, Paul. I wanted to ask you. I saw an interview back in June that you did with ROC growth, and you showed a video of the waveguide’s potential. How realistic is it or when do you think realistically that all that will be in real life?

In the enterprise space, the M3000 will be able to do a fair amount of the things that you see in that video. Not everything, I would suggest, but a fair amount. We have things demo systems here in Rochester where you can literally reach out and touch a three-dimensional object that you are looking at through the waveguide, spin it, grab it, move it around and play with it, but getting all of that in a consumer product, the binocular version we come out with next year will do a lot of it not everything though. There is some of the sensor technology, positioning technology that you need things like Intel’s Real Sense technology built into the glasses to do some of the things that are in there and some of the point cloud kinds of stuff that people are working on. 2016, you’ll see some amazing things, and in 2017 it will even get more amazing.

Okay. And as far as the waveguides go, are you mainly focusing those for the enterprise or the consumers?

It’s kind of a mix bag. They are starting on the enterprise side for Vuzix’s but some of our partners are focused on consumer. We will also have our own consumer offerings in the 2016 timeframe now.

Okay. And how are the pre-orders coming for the iWear 720?

It’s growing. We did the soft launch at E3. There is an unending amount of interest in them. We don’t have the units yet that we can be out on the road with. And I believe that once that’s there in September, we have a – for significant marketing efforts that we are kicking in, and the demands that – it’s already got pretty good demand, but what we’ll see to sell the products that we are building through this, it won’t be a problem at all for us.

But do you see…

We are not really publishing right now specifics in this regard from competitive perspectives.

But do you see that product competing directly with Oculus and the numbers that Oculus has projected to sell, do you think Vuzix will be very close to that?

I don’t see this as actually a direct competitive offering to the Oculus product. The Oculus product, you can – it’s a great product, but you use it in your house, you plug it into an IBM PC that’s very expensive, it’s reformatted content, so everything that gets built for that content perspective has to be customized. And the iWear 720 is not the case. It’s – you can plug and play with almost anything. So it’s really – it’s also not quite the virtual reality experience. Although it’s amazing gaming experience. There are times where it will take your stomach out even if you are like flying around and that sort of stuff doing so. So it’s a great products, but it’s really different classification of a product. The demand, I don’t know yet, what to expect from this in the next-generation of it.

Okay, and as far as iWear 720 goes, you are launching globally and do you think China lifting the ban on the gaming consoles, will that help?

I don’t have a good feel for the impact that might have with this device in China. We are launching globally though. It’s interesting to know that they have done that and I would suggest that on Playstation 3 and the Playstations and it’s a great product to use. But, I am not sure that I have enough insight to know whether or not the lifting on that ban is going to make a significant impact on our sales in China.

Okay and some of the PRs that you said will be coming in the summer and the fall. Do you still expect more PRs coming for Vuzix?

Yes.

Okay and do you know when roughly?

Sorry, they are going to be scattered from now until the December timeframe, right up tot the end of the year that will be. There is all kinds of stuff coming. Vuzix has a lot of hands in the fire.

And each time there is an order or something Vuzix has to report that, right?

If it’s a material number/contract, then we would typically report that and some of the customers clearly want confidentiality until he has to market, but we would – if there is something material, we would do our best to be – disclose it.

Thank you. Our next question is coming from the line of [Indiscernible] with Oppenheimer. Please go ahead with your question.

Hi, congratulations. It looks like you’ve made a lot of progress.

Thank you.

Yes, you are welcome. Let’s see. I think, last conference call, you would say that there were about 40 large, very large companies who had tested the glasses last year. So, I wanted to ask, have roughly what percentage of them have given you reorders and do you expect to see more reorders over the next six months or so?

Yes, I mean, a significant number of them are giving us reorders now.

I mean, just a ballpark, here you are talking about like 10 in the area of 10, in the area of 20, 30, what kind of numbers you are talking about?

Hold on, just a minute. I don’t have the whole sales database in front of me. I mean, the names of the companies that I mentioned in the conference call, every single one of those guys at this point are in the reorder conditions with Vuzix. The companies – I told this is in the APX Labs, in the Ubimax, they are more aggressive in their reorders with Vuzix’s, because in most cases they are selling to a lot of other companies around our solutions. So the value-added reseller partners. Some of the bigger companies, like the SAPs of the world, they are just really getting started, they are reordering too though. Some of the trials you guys have heard about from the larger shipping companies and alikes are in reorders with Vuzix’s. It’s a reasonable number of trial programs are actually following on with more and more. They are not doing as fast as Vuzix would like, especially the bigger guys, that’s what we mentioned. But, it’s the bulk of them.

Thank you.

The next question comes from the line of Jay Srivatsa with Chardan. Please go ahead with your question.

Yes, thanks for taking my follow-up. Just a couple of questions related to operating expenses. It looks like there was a pretty decent jump in the quarter. What do you see your further expense structure to look like going forward, Grant?

Well, maybe excluding, what we continue to have them higher. I mean, it will – this quarter, it shouldn’t be anything too dramatic. I mean, we have hired some additional R&D people and we are going through all of the final tune ups and testing on the iWear. So, you’ll see a further increase in R&D, but, in G&A in the fall, let me add some financial reporting people. I would think you are going to see increases for the balance of the year in the 20% to 25% range over the – what we’ve incurred in the last – just in the last fiscal quarter.

What is that due to your breakeven revenue run rate? What type of revenue run rate do you need to get to?

Well, it’s certainly more than the $10 million to $12 million. We had a year from now. We have modestly calculated, but I mean, I would realistically or probably looking at revenues north of $15 million.

Okay, and then, given the burn, are you comfortable with your cash position that you have currently to achieve breakeven or is that something that needs to be looked at some point?

Definitely, I mean, with over $20 million bucks in cash and marketable securities, I mean, even if we had a weak quarter revenue-wise, like we just did, I mean, we got well over three years of runway left and as revenues will increase and we are very positive they will that that runway will get extended even further.

Okay, and last question, what was the share count in the quarter?

There is - just a little over 16 million shares outstanding as of today.

Thank you. Good luck.

Thanks.

Thank you. The next question is from the line of Alpash Patel. Private Investor. Please go ahead with your question.

Hey Paul, I am back again. I wanted to ask you about the Intel. I know they bought in at $5 a share. So, Grant, do you guys – did you guys feel that would have been – get support for the share price?

Yes, we would have thought that might have being some level of floor, but clearly, there is some holes in the floor. So, it’s – I mean, they made – I think a long-term strategic investment. So, I mean, and at the time, it puts a large position. We typically, these investments like that go in at a premium.

I would offer that I think Intel got a hell of a deal. I realize where the stock is trading at now, but if they try to buy that much stock today, our stock would not trade at this price. I also believe Vuzix, if you look at the marketplace, this is personal, but we are undervalued. It happens to be that we are a public company and the winds blow the way they do as a public company. I don’t believe our current stock price has much to do with what the real value of Vuzix is.

You are exactly right. A few are coming with an IPO right now, I believe you’d be valued and value gets right now, at least $1 billion.

I mean, look at the comps, right. I mean.

Okay, and finally, has there anyone else other than Intel approached Vuzix recently for a potential buyout?

I got a few closing remarks. We’ll comment to that last question.

Thank you guys.

Thank you. I will now turn the floor back to Mr. Andrew Haag for closing remarks.

Hi, everybody, sorry about that. I’d like to thank all Vuzix’s shareholders for their participation on today’s call and their support for the company. And this concludes the Vuzix’s 2015 second quarter conference call and Paul, and Grant, I just want to congratulate you and the team there on all the accomplishments. Thanks everyone.

Thanks everybody.

Thank you. You may now disconnect your lines at this time. Thank you for your participation.