Danimer Scientific, Inc.

Q4 2022 Earnings Conference Call


spk_0: reading and welcome to the denim or scientific twenty twenty two fourth quarter and for year earnings call at the time all participants are no was only mode a brief question and answer session will fall a formal presentation if anyone should require operator systems during the conference please press start zero on your telephone keypad as a reminder that comforted being recorded oh no way to turn the presentation over to mr james pelted ski the company's investor relations representative
spk_1: that you operator good afternoon everyone and thank you for joining us today much i typically two thousand and twenty two fourth quarter and for your earnings call leading the called today is deep cross great chairman and chief executive officer and might a just scanners chief financial officer i'd like to note that there is a flight deck that accompanies today's discussion which is available on the investor relations section of our website at dinnertime direct dotcom i'll call your attention to the company safe harbor language which is published in our you filings it also on slide to of the presentation i just referenced on today's gop he made his forward looking statements within the meaning of the safe harbor provisions of the private securities litigation reform act of ninety ninety five as amended forward looking statements include among other things statements regarding future results of operations including margins profitability capacity production cost i'm a programs and market demand levels actual results to differ materially from what is expressed or implied in our forward looking statements the company assumes no obligation to update any forward looking statements reflect events or circumstances after the date your of except as required by law please presentation also includes references to non gaap financial measures within the meaning of fcc regulation g we believe these non gaap measures have analytical about you but noted they should be taken as an additional measures performance gap results we have provided reconciliation for non gaap financial measures to the most probable gap financial measures in our earnings release and our presentation thank you and it's not my pleasure to turn the ball over to steve gosh great chairman and chief executive officer of denim or scientific
spk_2: becky james
spk_3: good afternoon debbie want to thank you for joining us as you know we pre release preliminary fourth quarter at for your results for twenty twenty two i marched the twentieth when we had asked the successful completion of i knew hundred thirty million dollars in your timeline there are three things that like the point out about the time on as we get started this afternoon first this dedicated important strategic financial go to take near term liquidity risk completely off the table it provides us with the financial runway we need to easily navigate timing and ever seen circumstances as we realize expect customer demand that we expect will fully utilize our recently expanded capacity beckett i want to be clear that we have no plans to use the proceeds of this term loan for capital projects
spk_2: we remain confident that we can obtain the require project financing to complete the greenfield facility at pleased that we've that between your application to the deal he loan guarantee program
spk_3: third despite the i kept cottages debt we were absolutely unwilling to utilize equity to create a liquidity cushion we view that deletion to shareholders that would have resulted as flatly unacceptable as you not for the past week or fourth quarter and four year twenty twenty two financial results brand line with the guidance we first provided in may of last year or at first quarter call the numbers allow don't do proper justice to where we are today the opportunities we have going into twenty twenty three continue to improve and are certainly better relative to what we could have reasonably expect at this time last year i'd like to walk you three step by step the past we've laid out for the year ahead first as i said we take and liquidity issues up the table
spk_4: second
spk_3: over the past eighteen months or so we continue to assemble a very special team of executives
spk_2: like a joke as chief financial officer who breaks significant public company experience
spk_3: pete edwards a leader in business development at be a sf anthony austin a cheap human resources op's your with large company hr experience at delta airlines and pepsico deborah make ronald from nestle who serves as are cheap corporate development officer
spk_2: read rogers who came to us from pepsico it serves as vp technology development
spk_3: and steve martin our new chief legal officer and that's what attorney was significant public company and intellectual property expert as who also hard to engineering degrees including a masters in electrical engineering
spk_2: finally with regard to or executive team i particularly pleased to call out that animal catalytic technologies and or jeff iraq leadership has successfully retained every kiki made from november and that business is fully integrated onto to the damn robert platform
spk_3: i know every company makes a statement that they have a quote world class executive team but when you put the animal new together with the season i'm a leadership godrej of folks like scott to keep working at sustainability answer are filled and trump are cheap science and technology officer and michael smith our chief operating officer to stay i could not be more true in addition to having the risk or liquidity position and cemented i came as we go forward into twenty twenty three the third critical advantage we had a that are winchester kentucky facility is now fully capable of serving as the growth engine for production that we need a team outside of the plant is also a store they're showing us in no uncertain terms just what they can do on flight for of our presentation guilt find a simplified visualization or the manufacturing process in kentucky each about five fermentation units is fully commissioned and reading at much higher than expected yield levels when we design feature production capabilities relative to earlier designs we expect to significantly lower capital expenditures for future fermentation capacity to the progress we've made in yield those five units feed into three downstream processing lines or trains each drank get produce about nine hundred thousand pounds of meat tha per month from any combination of fermentation tanks we have now commissioned all three downstream processing trains the final stage of the process is a to extrusion lives that bland dpj with other biodegradable materials into finished resin i'll remind you that be achieved roughly half of the files material weight in our engineer materials at design capacity this enables us to produce depending i gushed mimics roughly two point seven million pounds per it street or per month of formulated ph a base resin are finished product the almost twenty years of formulation and application development experience that informs the blending and extrusion process is far more valuable a far more difficult than i think is generally appreciated the ability to engineer or formulate high performance materials is an important barrier to entry into this market it is as significant as the ability to make me ph a itself
spk_2: this specific resin find the ways we provide all have a challenging and intensive research and development effort behind them
spk_3: as a result or materials are able to run on customers existing process equipment whether they are using blow molding injection molding machines or other equipment a product also perform well in there and use applications as straws cutlery or films for instance as of today with a little increase your plants staffing we could push the plant to support the shipment of three point six million pounds of formulate your and per month and additional anchorman staffing would be necessary to get to five point four million pounds of formulated read and per month that are full design or nameplate capacity roughly sixty five million pounds of finished product out the door each year we believe we could reach that level a capacity by year end if needed don't use our you should understand the critical map for kentucky the ph a capacity of thirty two and a half million pounds and able to produce about sixty five million pounds of formulated resin at an average price of just under three dollars a pound the winchester plant can deliver roughly one hundred ninety million of revenue per year what we won't know the peak margin capability for sure until we actually reach a sustained full capacity utilization we believe the contribution margin of kentucky tops at it north that thirty percent this would drive positive cash flow at the facility level of roughly sixty million dollars a number that would generate positive even da for the company where cradle be proud of what our entire team has accomplished in kentucky and please that such a powerful manufacturing engine to propel us forward go to quickly recap we have the financial resources and liquidity the expertise and talent and a world class production facility to execute well for customers around the world we're enabling our customers to grow their business with branded high value high margin environmentally responsible products our family residence combined you dig by degradation a performance qualities that only a ph a base material can provide we can design a price to meet any level of the different bad a great ability certifications issued by independent agencies around the world certifications that governments are increasingly requiring and that consumers are increasingly seek out category by category we are poised to disrupt large commodity markets dominated by petroleum based plastic the demand for ecologically responsible materials is clearly coming from today's consumer particularly younger adults with quickly growing purchasing power they are passionate about the big global issues that pj can help solve and they are educated about the products and companies they spend with this is why the and consumers for our products tend to be logged global brands without adoption they risk losing share over what off the boat down to what could be fractions of a penny for a strong bag or a cup starbucks dunkin donuts and mars wrigley are great examples as our pepsi and medfly both t early partners available these are the types of companies have have embraced the leadership position on sustainability others will follow their example and for those of you fall milan i'll turn your attention to slide five of our earnings presentation we had a number of specific wins that all talk about what is just breathe a hobby partner and the largest global market or of kiwi fruit who will use ph a base cutlery in a snack assortment work said to be working closely with hobby a global leader in sourcing for quick service restaurants we are working to build on strong initial interest from some of hobbies major global partners and that delivered validating trial results for a range of products including straws cups cutlery and other applications additionally we're pleased that our customer columbia packaging group has partnered with us foods to launch know tax base draws under their evolve brand we're excited to see a partnerships and are degree of penetration into the market grow in strength and in scope they demand for solutions not only coming from customers it is also coming from governments across the world consumers are increasingly serious about pushing change on these issues particularly with respect to the unnecessary pollution of our marine environments that is a powerful electoral issue particularly for single use plastics we proposed legislation in europe will if it acted at the end of next year create a twenty four month window after which petroleum plastics will be banned for the manufacturer a single use coffee pods among other categories we've launched development average with three the five largest producers in europe and have anticipated our first test market launches in the second half of this year to put this opportunity into perspective a ten percent sure of coffee pods just in europe would require the entirety of kentucky's nameplate capacity that emerging opportunity is just another data point that illustrates why we increasingly see significant demand growth as inevitable the transit activity in the market and from for as that we will need a greenfield plant capacity we're pleased to announce that we have now submitted our part to application to the department of energy loan guarantee program for greenfield manufacturing facility bainbridge torture and we look forward to working with the deal we as it evaluates our application i'd now like return to the additional production technology under development and rochester new york with the animal channel a technologies or dct where we continue to make progress scaling up rinaldo i type of pj that is it just evolutionary is truly revolutionary the production of our a noble ph a non chemically as pete vhp through tablets rather than fermentation should be a game changer that drives tremendous efficiency into the process and dried tremendous capital and operating costs out of the process these features are driving advanced discussions with global blue chip chemical companies for large scale commercial arctic agreements
spk_2: as we complete our noble demonstration plant we have simultaneously begun it's commission
spk_3: this plant served to reporting purposes first it provides product at a sufficient scale to support our customer tests and trials second because we have specified reactor a distillation column designs that are scale diversions of fullsize commercial equipment the demonstration plan will provide it with useful data that allowed for optimization of our commercial plant this demonstration plant will help to make clear to extremely important part of this all household names and the chemicals industry that there are compelling economics and tremendous utility associate with the cat with black should appear ha they should see career opportunities for advantage capital investment lower power production costs were pj and development of novel applications that incorporate the were noble polymer a strategic partnership approach to ski or tablet technology platform is intended to enable the rapid deployment of low cost alternative supply chains for range of materials pcp potential intended to be validated everything points in the direction we have seen since we acquired this technology and we're increasingly confident that the capital we invest in that deal back in august twenty twenty one could ultimately generate perhaps by far the highest are oh i see if any of our capital investments i'll reserve a few comments for closing but it's a good time to the call to make for a closer view of the numbers and some comments are our
spk_5: but you see steve and good afternoon everyone i have several items to cover and i'll start with our financial results of slide six and should mention that all of our numbers are consistent with our march twentieth pre announcement
spk_1: fourth quarter revenues were fifteen point three million dollars as compared to seventy point seven million in the same quarter twenty twenty one weeks spurs and models decline in both products and services revenue the lower product revenue was a result of an unfavorable shift in the timing of ph a based shipments to a large customer relatively prior your quarter and more purely based product sales due to the war in ukraine which did not impact sales the queue for twenty twenty one turns revenues down with indicates our customers are moving from current contract the commercialization we were ported a fourth quarter gross loss of two point seven million dollars compared to a gross last two point four million in the prior year period after adjusting for depreciation stock based compensation rent and sir nonrecurring items adjusted gross profit was two point six million or seventeen percent of sales compared to four hundred thousand or two percent of sales in the fourth quarter of twenty twenty one
spk_5: but two point two million improvement in adjusted gross profit was the result of a favorable shift in the mix of revenues caused by a major customer that while unlikely to be repeated two million very high rate profitability
spk_1: this more than offset the impact of lower sales our the and es una expenses excluding depreciation and amortization stock based compensation rent and one time items total ten point three million dollars in the fourth quarter compared to nine point seven million in the prior year quarter mainly attributable to increase and headcount could sell
spk_5: murray's of support our future expansion plans
spk_1: adjusted ebitda loss for the fourth quarter of a point six million dollars compared favorably to a loss of ten point two million in the fourth quarter of last year the year over year improvement was driven out the gross margin line adjusted ebitda excludes dot com other income another add backs as reconciled in the appendix i'll turn to a for your results we book revenues of fifty three point two million dollars for the for your twenty twenty two as compared to fifty eight point seven million and twenty twenty one product revenue for the year was forty eight point four million compared to fifty point eight million reported for twenty twenty one tha related sales increased by seven points a million thirty four percent but as increase was more than offset by the klein peel a base residents of nine point nine million as we discussed previously are purely business has been impacted by disrupted customer operations in ukraine and russia ph a religious reviews increase to fifty three percent of total revenue and twenty twenty two from thirty six percent and twenty twenty one we completed several funded research and development projects over the course of twenty twenty one and twenty twenty two lead to a decrease in service revenue and twenty twenty two to four point eight million as compared to eight million last year we report as a full year gross loss of ten point four million dollars for twenty twenty two compared to a gross profit of nine hundred thousand dollars and twenty twenty one after adjusting for depreciation rent stock based compensation and certain nonrecurring items adjusted gross profit was four point four million and twenty twenty two compared to eleven million and twenty twenty one the decrease in adjusted gross profit was primarily driven by a change and product mix away from relatively higher margin pl a base residents pj base resin margins reflected increased costs really to the ramp up of capacity and kentucky facility we expect gross margin improve dramatically over time episode is capacity utilization numbers increase orange he and as you a expenses excluding depreciation and amortization stock based compensation rent and one time items the forty six million dollars and twenty twenty two compared to thirty one nine and prior year mainly attributable to an increase in headcount could salaries to support our future expansion plans as well as increases and costs associated with having a larger acid based such as properly a liability insurance i'll also note that the closing of the nobler acquisition was in august twenty twenty one so we picked up a full year of expenses for their operation i guess a partial prior year adjusted a bit of the four year which provides a view of results at excuse the impact of several noncash and or nonrecurring items was a loss of point five million dollars this is consistent with a range of eat or guidance who established and our first quarter call early may of last year a cash balance at the end of twenty twenty two was sixty two point eight million dollars which was within the guidance range we provided a sixty to sixty five million dollars capital expenditures total the hundred sixty five million dollars and twenty twenty two which was at the low favorable and of our guidance range of one hundred sixty five two hundred seventy five noise we also ended the year with total that balance of two hundred and eighty eight million dollars of slightly from the prior year and balance of two hundred sixty one million mainly due to additional forgivable new market tax credit borrowings during our third quarter or year and financial statements of course do not reflect the cash proceed or additional debt or my recently completed one hundred and thirty million dollar term one it is our intent to generally preserve this new cash on the balance sheet to maintain a strong equally position data labels better management of the business in general and in the event of unforeseen challenges can have additional importance a strong liquidy position means that when we need to move quickly we will not hesitate when we need to slow down consider options and come to a deliberate and thoughtful decision we will have the time and resources to do that as well
spk_5: we will continue to treat or cash very dearly and make a disciplined approach it it's use
spk_1: before i turn to call back to steve i like to provide or outlook for twenty twenty three that corresponds with slight seven of the presentation a kid or performance twenty twenty three will be the magnitude and timing of the customer demand to ramp up for ph a base residents and the degree to which realize the increase production capacity or kentucky operation we are confident their abilities produce ph a base residents that much higher levels which will have a febrile impact on a gross profit margin our guys is also reflects reductions to our as tonight and are anti costs and effort that has already begun and is reflected a sequential improvement over the past few quarters those factors contribute to our expectations of adjusted ebitda to be in the range of negative thirty one million to negative twenty three million in twenty twenty three an improvement of profitability of between fourteen million to twenty two million over the negative way five million we just reported for twenty twenty two in terms of quarterly flow while we don't provide currently guys we have good visibility into the first quarter foursquare will show modest decreases the products and services revenues prepared to the prior year under review line we seen a shift in the timing of shipments to one customer relative to last year which we expect to normalize in the second quarter service revenue will also continue to reflect the completion of some projects we have some major programs launching meteor was not yet clear how much of the initial impact will be recorded in the second quarter or the third quarter we do expect to return to year over year growth beginning and second quarter strengthening through the third quarter and in the fourth quarter of the year should show the benefits but number of major launches the highest levels of utilization at kentucky and respected to your strongest quarter of the year with respect to adjusted ebitda i'll note the obvious connection between utilization and gross margin as we scale up production activity over the course of the year looking up the on twenty twenty three weeks better ph a gross margin to strengthen further as we utilize kentucky school capacity we expect are purely business will stabilize at around the level we ended with and twenty twenty three we also believe that our current test you need an iraqi spending levels are generally adequate the support the growth of the business in terms of for your cat backs we have a baseline expectation of twenty six million to thirty one million dollars for twenty twenty three this range captures prior commitments to the grant hill facility maintenance expenditures spending to complete the november demonstration plant in rochester and a few minor projects this range exclude significant additional spending could bay bridge greenfield facility once we have receive feedback or application from the deal we we will be a position to provide you with guidance on the spacewalk
spk_3: hour and the call back to steve for is closing of the maps beck bike there is momentum in our operation momentum in the bio materials category a momentum and sustainability as a mandate for a spot that brands and businesses around the globe the pace of new customer inquiry continued to track at significant rates dispatch quarter the way we tracked and activity we got forty one percent year over year increase but that number doesn't reflect oh it the increase in urgency and seriousness of those calls the world continues to move in our direction we have financial flexibility and strength we have an outstanding team we had the production capacity we need it most importantly we have the ability to translate all those advantages and to value our customers who need not only great solutions but also great execution we think we have a powerful formula for success wait wait you as an abort year they held a great deal of success but i think are most important accomplishment this past year was that we completed the foundation we deep restaurant twenty three and beyond i believe in our entire team believes that twenty twenty three will be a watershed year and anniversary street
spk_0: bet you and operator we're not ready to take questions thank you will now be conducting a question and answer session if you're like out in question please for more one on your cell phone keypad a confirmation tone on the king lines and the question do you repress or to feel like to remove your question for you for partisan using speaker equipment to may be necessary to pick up your hands of before pressing the snarky and the interests of time with the participants limit themselves to one question and one follow a moment please multiple for questions
spk_6: i do our first question is john time one time with tj a security please proceed with your question hey good at you know what thank you for take my questions on my for my on he was just saw on the question of regulation on the topic of regulation you mention the had some on the other potential out there to in a move to moonlit and petroleum based on plastics it sounds like you if they do that you know
spk_3: you don't have the capacity to meet even just you know a small portion of that what what are the other options that are out there for these large companies to do so on and if they're not that much out there what what are they doing anything to help you guys you know reached that had cut that is sooner to to meet those needs but thank you for the question john right now i'm not aware of any other really elegant solution to that particular problem because of of heat towers quality some ally the other about palmer's that could be used at work at the at obviously a great thing for us but this is pretty early in in the dead the news cycle on it so i don't really have anything to report yet john about
spk_6: possible cooperation with with those potential customers to help and to that
spk_5: okay fair enough on your to mention that
spk_1: you your catalytic future opportune was with getting stronger than could be a very high return investments could you i'm just give it a little bit more detail what you're talking out of that just a tiny profitability whether the like a criminal or some and as long you don't like facility or the help us understand you know what what's new year compared to six or six months ago
spk_3: a year ago when when you are you know we're just starting out that
spk_7: yeah sure john thank you
spk_3: timing wise well let me let me get start with with no detail on on what we were actually doing so we're working on is negotiating to agreements one is it a call location agreement in the golf with with the a major supplier of i get went oxide and the second is an optic it chemical company that bought take agreement would take enough volume to cover our cash flow needs to operate that facility though it will allow us i believe we believe to get attractive project financing and that's about all i can really tell you right now and then you're both those negotiations are both going forward or the arctic agreement is it an eta at l allied drafting stage at this point and we expect to have some kind of agreements in place by the into this year
spk_8: what what you're what we have financing wind up and it'll be roughly two years
spk_3: to start shipping product
spk_6: and and i get the are just as a reminder that the plant that were taught about here is a hundred and sixty eight million pounds of capacity right thanks for that details the
spk_5: my cause you for you i think you had mentioned that you'd get very good utilization levels on such a exiting you know the year at any sense of what i'm wondering like the i've done enough to the year you use some question by time you adviser for the maps but an italian the most your sugar as you approach the end of the i to can you talk about that on that expertise
spk_1: yeah yeah thanks john pretty the question he i think as we are the works becker volumes the pick up you know what your quarter to to the next quarter the next one obviously been stronger at the end of the year and we believe that our young we're not going to be necessarily consistent all the time mr are will be someone penis i'll be at we think that with a higher customer base will take a woman of volatility out our capacity utilization than what we've seen over the last couple years by tom hanks for you know the expectations errors that we would certainly be running out in a while about the outbreak break even have the capacity required for the kentucky facility itself and i think probably making very good i had way towards levels that towel would cover the i'm becky overall company with a positive but again a lot of work there to go on our between now and then to achieve be the customer demand come through on the piece that we are expecting it to do to achieve that
spk_3: of a great and i'm second just what what did your turn casper and rate with the new financing and place and either the the adjustment you making to as to an energy
spk_1: yeah think overall yeah we please with some of the to change his i mean our guidance range that we gave out of your provides i think of a pretty good pathway to look at you know what the cash flows or to look like for the year and our when you look at the the ranges of the adjusted you better that we gave out how the cap x rangers
spk_5: we believe you know cash interest this year will certainly be higher than that it has been and god is probably a closer to maybe like a at a twenty three million dollar rate considering that new financing it's this for the most part starting up here the now as we execute one but now you know you could put those together and get a sense of what the cash from burn would be ah
spk_1: the savings that were expecting your car with an s j r and d
spk_5: we think that you of year that can be out you know in the million dollar range such a pretty sizable lamb
spk_1: i'm on a reduction and we're pleased delta can pull through and get more granular to a to achieve that but damn you know with the the ending cat bounce we had the yeah we'll use you know we paid off at ten million dollar loan and and we added a term loan the proceeds how we believe that you will probably end up the year
spk_5: somewhere in the that the low fifty two to mid sixties of liquidity and i think we're very comfortable with are considering what we said before about know the incomparable to twenty million dollar range
spk_1: okay gotta that's very helpful i just one more not have a jump back into what what is the nature of the reductions in and expenses your i'm looking at a eight at a more efficient these is it is it something else yeah i think the a i think a number of those are again to come spread out across as you know young and our and the and other our our a lot of things that we looked at just more granular is part of their budget process this year or we did take out some headcount ah we are going to have that you know less aren't you going on as we've got more projects or
spk_0: established and to we have our products that we can sell and dad just a lot of other enough sort of external spends that we've now with you have able to manage more effectively job insides are less consulting things like that but dog and we watched these costs very very carefully as you know our as jane are the is approach central or sales it remains high we eventually going to grow into that by the to while we're doing that it's most frequent rustic to sharpen a pencil there as well
spk_9: other minor if you like ask a question please press star one on your telephone keypad and confirmation town on the king a lot of in the question you
spk_10: our next question as from lawrence alexander with jeffries please pursue their question
spk_9: i guys is actually i can minister gone for long time grander and you take my question ah i guess i first question is you that you know are you going camping you know for funny recessionary with container back after twenty three and curse happened twenty four army and you're looking and i guess what's your view on the killing the biggest risk volumes
spk_3: going forward or in in in the next year's thanksgiving thanks for the question you know in terms of a recessionary risk i would say that we we haven't built anything necessarily a to that financial model
spk_11: but you know it was one of the important considerations in
spk_3: do in this time loud a as i know most of you have heard me say many times whenever i've been asked about risk to our business
spk_9: i thought about the timing of the customer launches can we really don't have control over windows happened your we could do our thing on our and and in with them we have to wait for the customer or the one thing we can control that that take that risk got the table is improving our liquidity and so that you with with with and and an uncertain economy out for this we felt like i it was important do that now rather than it away for a moment in time maybe when perhaps if things got really bad an economy that we would need to be able to do that though that that's really why why we have taken on this additional debt not a thank you
spk_5: and a you actually made references ready bags from to confirm a really approximate utilization rate that would make you guys break even you kentucky facility on just wanted to confirm that
spk_6: yeah which we stayed at the soccer couple times cabinet and or what we've said is that about a about a twenty percent noodles capacity was asian rate would make the they are facility itself breakeven from any better perspective i think you're gross profit for the most part it was he but as a lot of as tonight already there and then i say a higher levels so
spk_0: we can cover the yah ya the the corporate costs as well
spk_6: great imperfect thank you very much present
spk_3: thank you our next question is from john time on tank with cj as security please proceed with your question thanks to follow can you tell you you guys was dumped gives an update on a daily loan programs kind of which expecting a timing basis yeah shirt so as you fired that in the script and i and it within our our press releases well we'd just completed the part que application that that was about and eight thousand page document so i did to give you an idea that comprehensive nature of that applications are the next step or oriented to wait for a response from the d o e but if our our application is approved they will move on to negotiation of time arms and i do delegates period
spk_6: yet we're hopeful offered of see and finding in in the second half of the year
spk_3: that but obviously that's something we we have to wait wait and see what the deal he does okay great what can you use part of that i'm assuming you get it to to pay down debt the high cost at the average with that talk to the go to catholics i know that would just go to cap acts up for the project ah you know there would there would be come management fee there and
spk_8: licenses of things like that back to that the company
spk_6: but got all those details would yield
spk_3: be part of the negotiation with the department
spk_12: okay i'm it is our optic agreements for the greenfield the to have the on hold until you get that financing as it is affected them
spk_3: well a good question john we we of course are are ill have always working on dec agreements just in the natural course of time with customers as as our relationship to develop about what we i'd kind of determined out what we were got through this tag that that application process it is that yeah we we may have enough contracts and support now to get through that the approval process but as we get more it more detail
spk_6: that that would allow us to go back to customer if we needed to round out those contracts or a kind of a clear understanding of what we need out of a contract you to get it across the finish line tokyo prior prior prior to them coming back to get we come back and and ended up you're proposing times and those kind of
spk_3: oh were you aware of flying a little be applied in terms of of what they might need in that respect does it look at an unarmed any update on ah the cops computer green show that the just stayed to the top you're you're still working on yeah that that well that that number is gonna have probably you out change depending on our that the timing of of the project approval and and although sort of things but we did recently bump up our estimate
spk_6: it is in in iran do that like we brought the low end up by fifteen million in the in the top end up by around fifty million in terms of are expected
spk_13: caught to that facility so they grabbed fiber and fifteen million to six hundred and sixty five million now
spk_6: it is that the remaining i got the total
spk_3: that's a total
spk_5: what what have you spent so far
spk_6: i might you can catch me if i'm wrong here i want to say hundred and seventy one million through the end of the year but if you have a better cumberbatch
spk_14: not that exactly the number
spk_0: okay thank you so much get i think so
spk_3: as a reminder of you would like to ask you questions please press star one on your telephone keypad a confirmation tone one the carolinas in the question que
spk_0: thank you there are no further questions i'd like to turn the floor back over to stephen croskey or any clothing comments

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