SQL Technologies Corp
NASDAQ:SKYX
Earnings Call Analysis
Q4-2023 Analysis
SQL Technologies Corp
The company celebrated a landmark year with revenues soaring to a record $58.8 million, bolstered by an unprecedented fourth-quarter sales figure of $22.2 million. A significant contributor to the prosperous year was the acquisition of the Bellamy e-commerce platform, adding over 60 websites for lighting and home decor to the company's portfolio, thereby enriching their gross profit which escalated to $18 million, or 31% of revenue.
To sustain and amplify growth, the firm increased its sales and marketing expenses to $20.1 million, a strategic move to enhance the launch and distribution of their Advanced Sealing Smart and standard plug-and-play platform products across top U.S. and Canadian websites. The focused investment in marketing drives the future expansion and aims to secure the company a firm foothold in its market segment.
With a prudent gaze on the future, management anticipates cash flow positivity in the year 2025, envisioning a growth trajectory that includes engaging the builder commercial segments, enhancing partnerships, and incrementally tapping into licensing, subscription, and data aggregation revenues. These steps are poised to streamline the company's journey towards standardization and market dominance.
In the face of a net loss, the company showed signs of financial stewardship by reducing operating cash use from $13.8 million in the previous year to $12.9 million. Moreover, financing activities injected $22.7 million in net cash, hinting at robust investor confidence and a solid capital structure to support its operations and growth strategies.
With innovation at its core, the company is keen on enhancing the smart home experience by pushing its ceiling receptacle outlet to more homes. In the past year, they garnered attention with seven CES awards, two of which celebrated their all-in-one smart platform. The company proudly looks forward to increased penetration into the home automation market, expecting to trigger recurring revenues with its suite of smart home products.
The company's diversification into seasonal items like holiday lights exemplifies the adaptability and responsiveness to consumer demand cycles, thereby providing additional revenue streams and engaging with a variety of consumer interests and needs.
Despite concerns about the repayment of $12.4 million in accounts payable, the company maintains a solid position with 18 months' liquidity reserve and a focused strategy on capital management.
Aligning with GE-approved manufacturers ensures quality and volume production capabilities. The company has progressively increased its compatible product offerings, growing from 100 fixtures in June to over 40,000 at present, underpinning an aggressive scale-up in manufacturing and sales potential.
By subcontracting to specialized electrical, tech, and smart product factories, the company leverages GE's stringent Six Sigma approved manufacturing capacities while focusing on its core competencies of innovation and market expansion.
Recognition by ANSI and NEMA and the adoption of 'WSDR' as a generic name for the company's industry-changing product validate the journey toward standardization—a quest 12 years in the making. Relentlessly focusing on safety measures, the company believes it is on the right path despite the typically slow regulatory processes.
By choosing a licensing model, the company adheres to anti-monopoly regulations and envisions its smart platform becoming a safety standard across the U.S. and potentially globally. This strategy aligns with GE's vision and is designed to reach a significant share of the $500 billion Total Addressable Market (TAM).
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Good day, and welcome to the SKYX Platforms Corp Fourth Quarter 2023 Investor Update Call. Today's webinar is being recorded. Before we begin the formal presentation, I'd like to remind everyone that statements made on the call and webcast, including those regarding future financial results and industry prospects are forward-looking and may be subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the call. Please refer to the company's SEC filings for a list of associated risks, and we would also refer you to the company's website for more supporting industry information. At this time, I would like to turn the webinar over to Rani Kohen, Executive Chairman of SKYX Platforms Corp. Sir, please go ahead.
Good afternoon, everyone. Thank you for joining us. Happy to be with you here and to share with you some highlights from last year and last quarter. And I will now have our President, Steve Schmidt move ahead and start with our session.
Ronny, thank you very much. I joined SKYX because I believed in the management, the products, the strategy and the huge opportunities that were before this company. And I'm really excited today to be able to share with you the significant progress and momentum that we are achieving. It really is truly exciting. Like any company, it really starts with our people, and we continue to do an exceptional job on bringing leaders to this organization. And you can see by this chart, Bob Nardelli, former CEO of Home Depot and Chrysler and GE Power Systems, Al Weiss, former President of Disney Worldwide Parks and Hotels & Resorts; Governor Tom Ridge, Head of Homeland Security, 2-time Governor of Pennsylvania is on our Board. Mark Earley, really the National Electric Co. He headed that up and joined us because of his belief in where we're going and what this company has to offer. Eric Jacobson is former President and CEO of the American Lighting Association, and he's joined us after retiring after a 30-year career. Taneja Mostafa really headed up Microsoft's global AI business leader, and we're excited to have her joining us. Paul Chernawsky chairs our Sky Insurance Advisory Board, and then Lance Shaner as up our hotel advisory Board, our owner of over 60 Marriott Hotels. So, a very impressive group of leaders that continue to help and build our brand. Our mission, we talk about this as really the buildings and homes safe and smart. That's really the new standard. But the key part of this chart is you think about any company that has based itself on saving lives, saving costs, saving time and simplicity. And many companies have been successful simply by one of these areas. But we at Sky have all 4 of these areas behind our products and technology, and it's really the excitement that we feel. We strongly believe that based on these aspects, we really are positioned to revolutionize both the lighting and smart home industries and can become a safety standard in homes and buildings in the U.S. and globally. We now have over 77 U.S. and global patents and patent spending with applications with 23 use patents in the U.S. and globally. Our addressable market is huge to over $500 billion expanding and really spanning almost every room that you can think about, and our expected revenue streams include product sales, royalty and licensing, subscription monitoring and the sale of global country rights. So when you think about SKYX and early technologies and how we're advancing key sectors, it really is very special. I mean, the electrical safety regulators, they're going to advance home and building safety, insurance companies, huge dollar savings for insurance companies because of the safety aspect around our products. The lighting industries will save costs and significantly increased sales and profits. The smart home industry will see significant cost and increase adoption, and then electrical outlet box manufacturers, they'll significantly increase their sales and profits. On the right here, building safety regulators. They're going to advance both home and building safety. And then when you think about builders, apartment buildings, hotels, the cruise industries in every single case, there are significant cost and time savings, which are going to enhance safety. So, we're pleased to announce, as we talk about our revenue and the momentum we start to build here, and we really think about the fourth quarter 2023. We've generated a record $58.8 million in revenue in 2023, including e-commerce sales, smart home products, advanced plug-and-play products as compared to $32 million in 2022. We generated a record $22 million in revenue in the fourth quarter of 2023. We reported $22.4 million in cash, cash equivalents, restricted cash, available cash and investments available for the sale as of December 31, 2023, as compared to $16.8 million as of December 31, 2022. And we anticipate that the company will become cash flow positive during 2025. And the reason for that optimism is really the incredible progress that we're making and the momentum we have in so many areas. And I now want to kind of talk to you about that progress and momentum that we have. So think about this. We started sales to builders and Pro segments and opened over 100 builder and Pro accounts during Builders Show in Las Vegas. During 2023, we've already shipped its products to thousands of U.S. homes. Products include both advanced and smart home plug-and-play products. Many orders to home have included multiple units. We expect our products to be in tens of thousands of homes during this calendar year. We've begun selling in the Canadian marketplace. We continue to enhance market penetration of our advanced and smart platform technology products to both retail and pro segments to our e-commerce platform of over 60 websites for lighting and home decor. We entered into an agreement to supply approximately 1,000 homes with its advanced smart home platform technologies, and are expected to deliver approximately 30,000 units, representing a variety of our advanced and smart platform technology products to the developers' upcoming projects. And then last, the company won over 7 awards at the CES, the Consumer Electronics Show, including our most recently two awards for our all-in-one third-generation and Sky platforms. Continuing with the progress, and these really are significant. We have just signed a 5-year global licensing partnership agreement with GE. The licensed SKYX-patented advanced and smart home platform technology, including our sailing outlet, receptively related products as well as our all-in-one smart home platform technology. We've announced a collaboration with world-leading lighting company, Kichler, which will include Sky Advanced Smart and standard products for online, retail and professional channels. We've announced a collaboration with a U.S. leading manufacturer, Quisel, a U.S. leading lighting manufacturer for nearly 100 years, which will include SKYX advanced smart and standard products for online retail and professional channels. We also announced the collaboration with the U.S. leading elegant lighting company, Golden Lighting, which will include SKYX advanced smart and standard products for online, retail and professional channels. And the company is in the process of working on significant additional collaborations with leading U.S. companies and expect to announce them in the upcoming months. The last area of progress is really around the whole area of safety mandated filings. So we have filed for a mandatory safety standardization with a national electric code for our ceiling outlet receptacles for ceilings and homes and buildings with SKYX Cote, which is led by Mark Earley, former Head of the National Electric Code and Eric Jacobson, the former President and CEO of the American Lighting Association. Mr. Earley and Mr. Jacobson, obviously were instrumental in numerous code and safety changes in both the electrical and lighting industries. We believe that after 12 years of standardization process, including its product specifications approval, which was voted on or by NASI and NEMA, which is the National Association of Standard Institute and the National Electric Manufacturing Association. We have met the necessary safety conditions for becoming a ceiling, safety standardization requirement for homes and buildings. In the past 12 years, the company's products were already voted into 10 segments in the national code book, but we do have to say that obviously, voting decisions are at the discretion of the NEC voting members. So hopefully, that gives you a good sense and a good feeling for the significant momentum that we have going on in the progress we're making. I now want to turn the call over to Lenny Sokolow, our co-CEO, to talk you through more of our financials and achievements. Glenn?
Right. Great. Thank you very much, Steve. I appreciate it. I'd like to discuss first our 2023 financial results. Revenue in 2023 increased to a record $58.8 million, which included a record fourth quarter sales of $22.2 million, which we realized. These include, as stated before, e-commerce, sales, smart home products and the advanced plug-and-play products. Our gross profit in 2023 increased to $18 million or 31% of revenue. Gross profit was positively impacted by the gross profit from the acquisition of the Bellamy e-commerce platform, which contains over 60 websites for lighting and home decor. Our cash and cash equivalents, restricted cash, available cash and investments available for sale amounted to $22.4 million as of December 31, 2023, as compared to $16.8 million as of the end of 2022. Cash used in our operating activities for 2023 amounted to $12.9 million as compared to $13.8 million in 2022. Our sales and marketing expenses amounted to $20.1 million in 2023 compared to $18.8 million in 2022. Our net cash loss before interest, taxes, depreciation and amortization as adjusted for share-based payments, which we defined as adjusted EBITDA, which is a non-GAAP measure, amounted to $15.2 million. In addition to noncash basis loss of $24.5 million, we totaled $39.7 million net loss of approximately $0.45 per share in 2023 as compared to an EBITDA loss of $11.6 million in addition to a noncash basis loss of $15.4 million, which amounted to a net loss of $27 million or a loss of $0.40 per share in 2022. The management of the company wanted to discuss that our year ended 2023 was highlighted by our first full 2 quarters of significant revenues, including sales of our -- the sales and rollout of our Advanced Sealing Smart and standard plug-and-play platform products on many leading U.S. and Canadian websites. We believe we have accelerated our cadence of sales with robust gross profit, notably managing the cash burn of SKYX. Our e-commerce platform with over 60 websites is expected to provide additional cash flow to the company, which when combined with our existing cash, we anticipate will be sufficient for 18 months of operations. Management anticipates the company will be cash flow positive during 2025. We are encouraged with our path to the builder commercial segments, large online and brick-and-mortar partners, as well as realizing incremental licensing, subscription and data aggregation revenue that we believe will assist in paving the way for our standardization efforts. Additionally, our e-commerce website platform enhances the acceleration of marketing, distribution channels, collaborations and sales of both professional and retail segments. Some of our 60 websites that include the company's advanced ceiling, smart and standard play plugin products are disclosed on our website for those who are interested. And these websites include banners, videos and educational materials regarding the simplicity, cost savings, time savings and life-saving aspects of the company's patented technology. And if I may, I'd like to turn it over to Mark Boisseau to discuss some financial data.
Thank you, Lenny. Good evening, everybody. So basically, we're just going to recap some of the financial information, compare them to what we had for the year-end as of 12/31/2022. So again, the cash position was $22.4 million as of December 31, 2023, compared to $16.8 million as of 12/31/2022. The $15 million also includes some marketable securities. Accounts receivable amounted to $3.4 million as of 12/31/2023, that's approximately 14 days outstanding. So we collect fairly quickly. Inventory increased to $3.4 million from $1.9 million last year. The working capital is at $3.1 million as of 12/31/2023, the stockholders' equity and went from $7.9 million last year to $16.6 million. And as Lenny mentioned a little bit earlier, so our revenues was at $58.8 million compared to the revenues in 2022 were not meaningful. The gross profit is at $18 million. Our operating expenses increased to $35 million compared to $12 million. There's a few components to that. But obviously, as we absorb the operations, the company we acquired, Bellamy, there's some stock-based compensation decreased -- there's approximately $6 million increase of noncash expenses.The net loss is at $39.8 million compared to $27 million. The EBITDA is at $15.2 million loss compared to $11.6 million. The net cash used in operating activity for 2023 was $13 million, and that compares to 2022 to $13.8 million. The net cash provided by investing activities was $3.2 million in 2023. And it was -- we used $8 million in 2022, when it was primarily as part of the acquisition of the portfolio or marketable securities. The net cash provided by financing activities was at $22.7 million in 2023 compared to $20.9 million in 2022. And now, Steve.
So let's go back to Ronnie for additional comments.
Thank you, Steve. Thank you, Lenny, and thank you, Mark. We'll show you a few slides to better explain our activity in the market and why we add this opportunity and why we succeeded to lock some collaborations here, including GE and world-leading lighting companies, Kichler, Quisel and others. It's really, as you can see on this slide, is a razor and the blade model. Our mission is to enhance our ceiling receptacle outlet to as many homes as we can. We are doing that now. We started doing it, and we are enhancing the market penetration by loading more and more receptacles into homes, what will create for us recurring revenues opportunities interchanging fixtures, as well as down the road in the future with our smart product, data aggregation, monitoring and subscription that can be key for us. We also enable builders and homeowners to make a smart home instantly once you put a receptacle in the home. If you have 20 receptacles, or 30 receptacles, or 10, you just plug a few picture in if it's smart sealing fans, if it's smart lighting, if it's an all-in one smart platform that we have here. And that once you plug it in, connect with the IP, you really have a smart home, and excluding wall sconces and recess lights. As Steve mentioned earlier, we're proud to say that we won a total of 7 CES awards in the past year or so, including 2 ones for our all-in-one smart platform. And that was something that we're really encouraged of. This is the all-in-one smart platform. You can plug it in within seconds through the ceiling. You can still install light picture in the center, but you have all the sensors, including smoke detector, seal detectors, Wi-Fi extenders, intercom, room to room, and emergency calls, emergency infinite emergency lights and many, many features that Wi-Fi extenders and many others into homes. We already have the packaging. We didn't start sales, but we anticipate to start sales with this product, and there's a lot of demand and expectations of that product, the game-changing product that can enable at home to become smart instantly with just plugging it within seconds to the ceiling and we're very happy and encouraged that the Consumer Electronics Show, CES, recognized the capability, unique capabilities we have here. What we said earlier was enhancing the market penetration with the ceiling outlet here, receptacle. As you can see here, we have already 1 tax and 4 packs and now we're starting to introduce the 8 packs and the 24 pack based on builders' recommendations, and we can sell them. So the way we'll go, a builder will buy them during rough construction or when you renovate, you put them on the ceiling. When you're ready a few months after, you will buy the ceiling and plug-and-play. And as we mentioned, we'll have a smart home. Two additional products that are doing very well for us, is that plug-and-play smart -- excuse me, advanced plug-and-play for light fixtures and the smart advanced plug-and-play that makes every picture become smart. And then it gives all the capabilities of smart home that you want and you can use those capabilities, as we mentioned in the past, include many features, including energy saving mode, and you can use it with Surrey, Alexa, Google, Samsung, among others. So that's happening, and we're selling them on a daily basis. And here, another product, they're very proud to announce, and we will launch this year in our plug-and-play recess life. We have about 7-inch on the right year, a 4-inch and that has a tremendous opportunity as the numbers of recess lights are very, very high, as I'm sure all of you know. So I think for now, I think we're in good shape here showing you the main features as we mentioned on the new stuff. As everyone knows, we mentioned we filed the mandatory application and our co-team and management really believes that we are really in a good shape with this. We can't promise times. We don't know how long things like this happen. We don't have the clock, but we really feel that we delivered on the safety base what we need to and the life-saving aspects are huge. As we mentioned in the past, many people risk their life just to go install the light picture when there is a plug-and-play solution that can really prevent you touching wires. The last time something like this happened is the GFCI here in the center that is in every bathroom, in the mini kitchens, and we followed the path with having our 10 segments at the National Electrical Code, and we really expect based on the safety aspects after over 12 years that we're getting a better chance and getting closer. But again, this is not up to us. It's a regulator's voting, and we don't have a timetable for this. As you all know, we signed -- or Steve mentioned earlier, we signed a 5-year agreement with GE on December of 2023. It's quite a day of 4G that started with the Edison base here with the wires that people installed light bulbs for men years with wires until the Edison base game, and that's how we started. It became a global standard. Many that joined us, including GE and others, we believe that we have a chance to become the U.S. and then hopefully, one day, a global standard to have every ceiling have an outlet there, but the outlet at the platform here really enables you to create a smart platform and open a whole new world on the ceiling as we showed earlier with this slide. It's really opening a whole new world on the ceiling. We sold Christmas lights during Christmas, and we expect to sell more holiday lights. It depends on holidays. It can be Halloween, it can be Hanukkah, can be Valentine's and can be for kids and for sport teams, and many other things that we're looking at to. And really, that's where we are today. And we would like to thank everyone for participating. And if there's questions, we will try to answer. Thank you very much.
Thank you. And at this time, we'll conduct our question-and-answer session. [Operator Instructions]. Our first question comes from Michael Legg with Benchmark Company.
Thanks. Congrats on all the trust to date I wanted to kind of dig a little deeper on the breakeven level for calendar '25 and understand what that means if you can give us revenue expectations alongside that? I know you mentioned you'll be in 10,000 homes this year. Just can we put some revenue perspective around any of that?
We're careful to announced revenues and -- but we did say -- we believe we're already in thousands of homes, and we believe that this year, we're going to be in tens of thousands of homes and not 10,000. We believe we're going to be in tens of thousands of homes, and it depends on what pictures they buy. They can buy chandelier, they can buy a smaller fixture and it really depends on what pictures and how much smart is this. But we're happy with our growth and keep enhancing market penetration, but we do not provide yet guidance on exact revenues. Our President, Steve mentioned earlier that management believes that we can be cash flow free during -- sometime during 2025. But we're not yet announcing as we have the growth that we're trying to accommodate here. We did not announce any numbers yet and what does it look like?
Okay. I just assume if you had a breakeven number, we could have come within the range. Okay. So let's talk about the 18 months of cash on the balance sheet. Looking at the balance sheet, there's a lot of short-term liabilities, I think, $24 million -- like over $12 million in accounts payable. Can we just first talk about those current liabilities and how that cash is getting used for that?
Can you repeat your question?
Repeat the question, our CFO.
Yes. Okay. So you have the $18.8 million of cash on the balance sheet, of which $16.8 million is unrestricted. And then you have short-term, your current liabilities. You have $12.4 million of accounts payable, $5.7 million of notes payable total current liabilities of $24 million. So I want to understand how we have 18 months of cash on the balance sheet when we have those current liabilities.
Well, so on the liability side, especially with the e-commerce, so we get paid pretty quickly, relatively quickly. And then we don't have to pay the third-party manufacturers that all 30 days, 45 days later. So that's probably what you may be referring to.
I mean I'm just on the truck to send to $12.4 million in accounts payable and how that gets paid without dipping into cash of that where you say you have 18 months of cash. We could talk offline, if you want, but I just kind of want to understand where we are cash-wise and liability-wise. And I'm just trying to mesh with what we said. Okay. We can talk offline if you want on that. But second piece then is cash is up this year. Obviously, you raised some capital. We talk with where the share count is? I know it's $93.5 million on issued and outstanding, but we're now in March, 3 months later, have you utilized your ATM? And where is cash today, where is share count today?
So for now, we're just limiting ourselves to publish the 1231 numbers.
Okay. So there will be -- equal event filed with the 10-K on an ATM usage?
No, there will be. So we raised some money through the ATM.
Okay. Okay. That's all I have. Thank you.
Okay. I think we have Paul Cooney.
Yes. Our next question comes from Paul Cooney with the Benchmark Company.
Could you please just comment on your manufacturing capabilities? Like how much could you manufacture if you had the orders?
Yes, definitely. We currently have a few agreements with GE approved manufacturers, and usually those factories -- not usually, they're always by the Six Sigma quality control for quality and highest level of quality with the Six Sigma, but also a key aspect is the quantities that those manufacturers, that's a key element for GE approving factory. So we are in good shape for our growth, and we're enhancing and making more and more fixtures compatible to our product as we go. I believe that in June, we have 100 features capable with our technology -- compatible to our technology. In October was a few thousand. The end of the year was over 10,000. I think now we're around 30 -- over 40,000 fixtures that have the capability to use our products, and we keep on enhancing this, expecting to get to hundreds of thousands of fixtures that are capable or our technology. So we are at that point, in a good stage with production and for growth.
So who's manufacturing? Are you manufacturing them? Or are the lighting companies manufacturing them?
We subcontracted to electrical and tech, and smart product factories that are approved by GE. We subcontracted. We're not a manufacturer, we subcontracted to manufacturers with Six Sigma, and then approved by GE for quality control and quantity.
What's the breakdown as far as what percentage of them are smart and what percentage are just the plug-in product?
The Generation 2 smart, we're selling currently, I think, for $140 and generation -- advanced generation 1 plug and play was selling around and that's retail and wholesale, the numbers are different, but that's public out there. So we're selling between $40 to $50. So obviously, the breakdown of sales on the standard are higher than the Smart. We didn't publish those numbers, but we are very encouraged for the Smart asset costs 3x more than our advanced plug-and-play product, the smart plug and play product with all the features -- and there is a great demand for those products in the percentage of sales are really actually better than we expected when it comes to dividing between the advanced plug to the advanced Smart Club.
Okay. And the -- as far as the standardization process, I understand it's possible to tell about timing and things of that nature as far as when you would get potentially the standardization go ahead? And maybe this is more of a more question. What is the process that would speed that along? And I understand you don't want to talk about exact timing on that because it's impossible. But is there a way that we can kind of anticipate when that would happen?
So yes, we need to be careful what we say. But we -- based on the safety aspects, our co-team strongly believes that we provided all the answers to the safety that our product provides. And the rule is if you really save lives, it will or should happen, and we feel -- our co-team strongly feel that we're getting closer, but really regulators are not fast. That's a bad news. The good news is that we're already over 12 years in the process, and we accommodate the ANSI, NEMA support. That was tremendous in getting to what we are what they also voted for a generic name like in the bathroom, the GFCI stands from ground fall circuit interrupter. They dedicated the generic name for us and the condition is WSDR, wage support sailing receptacle. So we really met very tough rigorous conditions to be where we are, and we'll let the regulators do their job, and we're confident that we're in the right path.
And is there a -- it sounds like there could possibly be -- and if you -- and maybe this is why you're going in the licensing move. Is there any concern about monopolistic issues in terms of that nature? Or is that why you're doing the licensing with everybody?
Yes, it's a great question because part of it that we can't have a monopoly, and that's why we signed. That's one of the reasons. GE strongly believe that there's a potential for that becoming a standard here in the U.S. And if it happens here, potentially can go to many other places because it's safety. So that's one of the main reasons we signed the GE agreement, but we also believe that there is a potential for our smart platform generation 2 and 3 to be licensed in the market. So definitely, that's one of the main reasons GE wanted to sign that new 5-year agreements with us as we all believe there's a huge opportunity here. In the meantime, our TAM as Steve mentioned, is around $500 billion, and we are working on the path that if we can take -- capture a fraction of 1% of our TAM, a very small fraction, from a stock perspective, from a company perspective, it can be a great success. And if we get this mandatory and many believe it's more when than if, but we should see, that's going to be a game changer, obviously, but we are in a safe path and what we discussed today is as you see all those collaborations with many people that are here to support us with more leading lighting companies and others. And we're working, as Steve mentioned, on some other collaborations that we hope we will be able to share with the market if they happen.
And that's the holy grail. That's what changes the game.
That's the holy grail, but I think we're in a very good position to keep on enhancing market penetration, growing what we're doing now and that -- this path mandatory, Yes, definitely, but we're working on this path. There's a co-team that's doing the code and as Steve Schmidt and all our President and all the CEO, Lenny and all our sales team, Dave Paymer a former Head of Sales for Kichler, that's the world leading company and many good people here around us and our e-commerce team doing a tremendous job. So we have a path that's growing slowly but surely. And I think -- it's a bit like it's shortly, but I think happening a bit faster now. And we wanted to happen much faster than it is and working on this. So I think we're in a good place now. We started delivering to builders -- and we registered, Steve mentioned, over 100 new builders opened accounts with them. And as they're going to start construction, they started ordering already, and we expect and hope that we'll have more orders down the road.
Okay. All right. Very impressive. Thank you, guys.
Thank you very much, everyone, and looking forward to talking to you with more updates in the next quarter. Thank you very much, everyone.
Thank you. And with that, we conclude today's conference call. All parties may disconnect. Have a good evening. Thank you.