Dolphin Entertainment, Inc. Q4 FY2021 Earnings Call

Good afternoon, ladies and gentlemen, and welcome to Dolphin Entertainment Fourth Quarter 2021 Earnings Call. At this time, all participants have been placed on a listen-only mode and we will open the floor for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, James Carbonara. Sir, the floor is yours.

Thank you. And once again, welcome to Dolphin Entertainment’s fourth quarter and full year 2021 earnings call. With me on the call are Bill O’Dowd, Chief Executive Officer; and Mirta Negrini, Chief Financial Officer. I’d like to begin the call by reading the safe harbor statement. This statement is made pursuant to the safe harbor statement for forward-looking statements described in the Private Securities Litigation Reform Act of 1995. All statements made on this call with the exception of historical facts may be considered forward-looking statements within Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although the Company believes that expectations and assumptions reflected in these forward-looking statements are reasonable, it makes no assurances that such expectations will prove to have been correct. Actual results may differ materially from those expressed or implied in the forward-looking statements due to various risks and uncertainties. For a discussion of such risk factors and uncertainties, which could cause actual results to differ from those expressed or implied in the forward-looking statements, please see risk factors detailed in the Company’s annual report on Form 10-K contained in subsequent filed reports on Form 10-Q as well as in other reports that the Company files from time to time with the Securities and Exchange Commission. Any forward-looking statements included in this earnings call are made only as of the date of this call. We do not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent knowledge, events or circumstances. Now, I would like to turn the call over to Bill O’Dowd, Chief Executive Officer of Dolphin Entertainment. Bill, please proceed.

Thanks, James, and hi, everyone. Good afternoon, and thank you for joining us today. As always, we’ll start with a review of some financial and operating highlights, followed by a full financial review, and then we’ll open it up for Q&A. Overall, 2021 will be remembered as a transformative year for Dolphin, both in terms of our balance sheet and operating income as well as in our efforts to invest in assets where we believe our marketing expertise will significantly impact success. Let’s begin with our financial statements. The momentum from the first nine months of the year continued into the fourth quarter. Looking at the profit and loss statement, we have set another new quarterly revenue record with $10.5 million, a 57% increase year-over-year. Each quarter of 2021 set a revenue record, with Q1 at $7.2 million, Q2 reaching $8.6 million, Q3 at $9.4 million, and now Q4 at $10.5 million. All of these increases were entirely organic and stemmed from the Super Group’s growth and service cross-selling. With each quarter setting a new revenue record, the full year also reached a new high of $35.8 million, which is an approximate 49% increase from the previous year. Now, turning to our operating income, which is how we measure our performance. 2021 was a milestone year in this aspect as well, as we achieved positive operating income after accounting for noncash items like depreciation and amortization, and changes in fair value of contingent consideration. We take great pride in this achievement, especially since our expenses included investments in our 2.0 initiatives. Lastly, regarding our balance sheet, while we will be releasing the balance sheet following the completion of the audit, which we expect in the next few days, I must highlight that in 2021, we achieved a working capital surplus, having more cash on hand than all our remaining debt, including long-term debt. This accomplishment enabled us to eliminate our going concern, a significant milestone for any microcap public company. Now, let’s discuss operational updates on our Super Group, the companies that are driving these impressive results. We’ll begin with Shore Fire Media, Dolphin’s leading music PR firm, which had a fantastic 2021, especially in the fourth quarter, working with clients and projects that collectively achieved 27 GRAMMY nominations, showcasing the diversity of the company's roster across various genres. Shore Fire continues to lead in music PR without any signs of slowing down, recently managing the red carpet at the Bud Light Super Bowl Music Fest, featuring events with stars like Green Day, Miley Cyrus, Blake Shelton, and Gwen Stefani. Moving on to 42West, Dolphin’s entertainment PR powerhouse, who kept busy in the fourth quarter promoting major films including the latest James Bond movie and Steven Spielberg’s adaptation of Westside Story, as well as the revival of Sex in the City. The Observer recently published its ranking of the best PR agencies in America for 2022, a highly respected list of the top 50 public relations firms in the nation, where 42West was ranked number 2, the highest ranking for any entertainment PR firm. They were recognized for their exceptional PR services in film, television, and corporate PR management, working with numerous studios, streaming services, A-list talents, and respected brands like Fandom and Riot Games. Congratulations to everyone at 42West for this remarkable accolade. Next, we have Be Social, Dolphin’s influencer marketing group, which had an active quarter with partnerships involving iconic brands like The Pokémon Company, McDonald’s, and Kim Kardashian’s SKIMS clothing line. Additionally, Be Social collaborated on projects that were featured in Oprah’s Favorite Things and Sports Illustrated Swimsuit magazine. Now, regarding Viewpoint Creative, Dolphin’s esteemed creative relations agency, they won 4 Gold MUSE awards in this year’s international competition for their work with clients like HBO Max and AAA Northeast, across various categories including public service and activism. Lastly, we’ll discuss The Door, our top culinary hospitality and lifestyle PR firm, which spent the fourth quarter promoting the New York City Wine & Food Festival, launching Rachael Ray’s bestseller, This Must Be the Place, and Dan Richer and Katie Parla’s book, The Joy of Pizza. Both books became New York Times category bestsellers, along with promotions for National Peppermint Bark Day for Häagen-Dazs. If you are enjoying food, drinks, or making reservations, The Door is likely promoting it. The Door also earned recognition in The Observer’s ranking of the most powerful PR firms, credited for overseeing the launch of Dolphin Entertainment’s NFT studio last year and providing a unique integrated marketing approach for high-profile clients, including Williams-Sonoma and Citarella. This acknowledgment is significant, and I would like to commend Charlie, Lois, and the entire team at The Door for their vital role in the Dolphin 2.0 initiatives that we will discuss shortly. As a reminder for anyone new to the call or unfamiliar with Dolphin, we categorize the work of our Super Group under Dolphin 1.0 as top-tier marketing of pop culture. Dolphin 2.0, on the other hand, involves leveraging pop culture to promote the assets we own. The purpose of forming the Super Group of entertainment marketing companies under a public company is to acquire ownership in the assets we create, where our marketing expertise will enhance their chances of success. In essence, we aim to own things we believe we can market better than anyone else. Generally, there are two types of Dolphin 2.0 initiatives. The first involves developing assets in content, consumer products, or live events, and the second involves acquiring ownership stakes in other companies that have assets in those categories. Let’s discuss the second type of Dolphin 2.0 investment first, starting with Crafthouse Cocktails. In December 2021, we formed a strategic partnership with Crafthouse Cocktails, a leading brand of ready-to-drink, all-natural classic cocktails created by renowned mixologist Charles Joly and respected restaurateur Matt Lindner. High-quality ingredients, well-balanced cocktails, and authenticity have defined the brand from the beginning. Crafthouse Cocktails is nearly 10 years old with an award-winning product line. They enlisted the Super Group led by The Door to help market their product, paying us a monthly fee for our services while granting us an ownership stake in return for the added value from the entire Super Group. We established a similar relationship with FanJolt, another Dolphin 2.0 initiative announced in the first quarter of this year. FanJolt is a new online experiential platform that fosters memorable interactions between fans and a selected group of premier talent to support their favorite causes. The platform features personalities like Rafael Nadal, Aaron Judge, Jewel, and Ashanti, among others. With FanJolt, we also receive a monthly cash fee and an equity stake in their company for the value added by the Super Group. For these types of Dolphin 2.0 initiatives, we usually aim to obtain between 5% and 10% of the equity along with the monthly fee. For the other category of Dolphin 2.0 initiatives, where we develop assets that we are eager to market, we do not receive a monthly cash fee since we would often be paying it to ourselves. Consequently, we take a larger ownership position in the product or venture. Examples include Midnight Theater and the NFT marketplace we are building. Regarding Midnight Theater, on October 12, 2021, we announced our acquisition of an ownership stake in this contemporary variety theater and restaurant that will anchor Brookfield’s $4.5 billion development known as Manhattan West. As previously mentioned, Midnight Theater represents the most thrilling live venue concept we have seen in a long time. It will feature a modern variety theater alongside a fantastic restaurant, bridging a gap in the current cultural landscape. We aim to open the restaurant in June and start previews this summer, with the theater's grand opening and a complete seven-day-a-week schedule in the fall. Dolphin will manage all publicity and marketing aspects for both the restaurant and the theater, facilitating talent and commercial relationships in entertainment and culinary sectors. We anticipate that Midnight Theater will produce a relatively predictable financial model, given its two components, plus a third component which is a bar named James Carbonara’s landing spot. Many variables for the model are already established, enabling projections based on seat counts, average ticket prices, and restaurant turns. This will quickly lead to a revenue model. We will aim to operate the venue within typical industry profit margins, and if successful, seek to expand to additional locations domestically and globally. This opportunity is particularly exciting for our company at Dolphin's stage in 2022, where we invested $1 million for about a 13% stake and options for up to an additional approximate 25%. It’s clear we’re very enthusiastic about Midnight Theater. Now, let's shift our focus to NFTs. As a reminder, last August, we announced our partnership with FTX U.S., a leading cryptocurrency exchange and wallet provider with over 1 million active users and more than $10 billion in average daily trading volume. That was as of last August; I’m sure those numbers have increased since then. Our goal is to create global NFT collections that focus on all of Dolphin’s sectors, including sports, film, television, music, gaming, e-sports, culinary, lifestyle, and charity. We also brought in award-winning visual designer Anthony Francisco from Marvel Studios, where he was the senior visual development artist responsible for designing iconic characters in the Marvel Cinematic Universe. In December, we announced that work had commenced on Creature Chronicles: Exiled Aliens, Dolphin’s first generative NFT collection, which will feature 10,000 unique custom-designed avatars of an ancient alien race crafted by Anthony himself. In March of this year, we announced our partnership with Flower Girls, a fine art female-led NFT collection of 10,000 unique Flower Girls created by respected artist Varvara Alay. Launched in December 2021, Flower Girls has generated over $15 million in sales to date and is donating 20% of profits from both primary and secondary NFT sales to various children’s charities chosen by the community. In February, over $400,000 was donated to children’s charities, including $200,000 to St. Jude Children’s Research Hospital, a client on Dolphin Entertainment’s extensive roster. The Flower Girls also allocate an additional 5% of profits to collecting children’s NFT art, thereby supporting and empowering the next generation of artists. Dolphin is utilizing its entire network of leading marketing and promotional agencies to enhance the charitable initiatives of Flower Girls, as well as to expand community benefits and increase value for Flower Girls holders. Dolphin will also use its unique position to explore meaningful and exciting new opportunities for brand growth across all lifestyle and entertainment sectors, including scripted and unscripted television series, digital and traditional publishing, consumer products, music, gaming, and events. Additionally, we will ensure that future Flower Girls NFT collections exclude sugar as part of our partnership venture. You can see that we have put in considerable effort over the past several months to leverage our initiatives in the NFT space. This coming summer, we anticipate making additional Flower Girls announcements in Q2 and launching Creature Chronicles: Exiled Aliens for sale in Q3. Each of these collections will have a retail value in the seven figures, offering substantial potential upside for Dolphin once we go on sale. I’ll pause there. In summary, we’re extremely pleased with our first four Dolphin 2.0 initiatives, and I hope today’s discussion provided additional detail. Just one year ago, on December 31, 2020, we had not yet started exploring Dolphin 2.0 initiatives. We always considered January 1, 2021, as the starting point for Dolphin because by then we would have scale with our Super Group, which included six acquired companies, and we would begin exploring our investment opportunities. By December 31, 2021, we had launched the first three of the Dolphin 2.0 initiatives, including the development of an NFT marketplace, acquiring an ownership stake in Midnight Theater, and entering into a strategic partnership with Crafthouse Cocktails. We added a fourth initiative after year-end, which is the FanJolt social media app. In closing, I want to emphasize that these 2.0 investments are alongside a growing 1.0 business that has led to record revenues for four consecutive quarters, including over 57% year-over-year revenue growth in the fourth quarter. We are profitable and expanding with a strong balance sheet, and now we can see Dolphin 2.0 thrive. This was our vision when we uplisted to NASDAQ four years ago and started assembling the Super Group. Thank you for joining us on this journey. Now, I will turn it over to Mirta Negrini, our Chief Financial Officer.

Thank you, Bill, and good afternoon, everyone. I will now discuss results for the year ended December 31, 2021. Revenues for the year were approximately $35.7 million as compared to $24 million for the year ended December 31, 2020. Overall operating expenses for the year were approximately $41.2 million compared to approximately $26.7 million in the prior year. Operating expenses are composed of direct costs, payroll and benefits, selling, general and administrative costs, changes in the fair value of contingent consideration, depreciation and amortization, and legal and professional fees. Direct costs for the year ended December 31, 2021, were approximately $3.9 million compared to $2.6 million in the prior year. Payroll and benefit costs for the year ended December 31, 2021, were approximately $23.8 million compared to $15.9 million in the prior year. Selling, general and administrative expenses for the year ended December 31, 2021, were approximately $5.8 million compared to $4.8 million in the prior year. Legal and professional fees were approximately $2 million compared to $1.2 million last year. Operating loss was $5.4 million, which included noncash items from depreciation and amortization of approximately $1.9 million and changes in the fair value of contingent consideration of approximately $3.7 million. This compared to an operating loss of approximately $2.6 million in the prior year, which included noncash items from depreciation and amortization of $2 million. Net loss was approximately $6.4 million, which included noncash changes and fair value of liability of approximately $3.1 million and approximately $0.3 million of a gain on extinguishment of debt. This compared to a net loss of approximately $1.9 million, which was positively impacted by non-cash changes in the fair value of liabilities of approximately $0.9 million, a gain in extinguishment of debt of approximately $3.3 million, and a loss of approximately $1.5 million on the deconsolidation of the Max Steel variable interest entity for the year ended December 31, 2020. Basic and fully diluted loss per share was $0.85 per share based on 7,614,774 weighted average shares outstanding. This compares to $0.35 basic loss per share based on 5,619,969 weighted average shares and $0.58 fully diluted loss per share based on 6,382,937 weighted average shares outstanding last year. Cash and cash equivalents as of December 31, 2021, were $7.7 million compared to $7.9 million last year. That concludes my financial remarks. I will now ask the operator to open the phone lines for Q&A. Operator, would you please poll for questions?

Absolutely. Thank you. The first question is coming from Allen Klee with Maxim Group. Your line is live.

Yes. Hi. Congrats on exceeding my expectations for the quarter. There's a strong momentum. To start, can you clarify if all the revenue for the quarter came from the Super Group, or if any of it was generated from the 2.0 so far?

All of it was from the Super Group. We haven’t recognized any 2.0 revenue until this summer.

Got it. Okay. To clarify, did you say that Midnight Theater, the restaurant, will start in June and then the theater in the fall, Flower Girls will be in the second quarter, and Exiled Aliens will be in the third quarter?

Yes, Allen, that's correct, with the additional note that the restaurant will open in June alongside previews of the theater. We are booking a variety of acts for the summer and expect it to be an immersive experience featuring music, Broadway cabarets, comedy, and magic, among other types of entertainment. We have exciting announcements coming in the following weeks, and the full theater will officially open in the fall with a complete entertainment schedule. Regarding the NFT collections, we have completed the setup to sell them using credit cards, and we are particularly enthusiastic about our partnership with Flower Girls. We plan to announce more details in Q2, so stay tuned for that. Additionally, we aim to finish and launch Exiled Aliens, the Creature Chronicles collection from Anthony Francisco, in Q3.

And when you said you expected seven-figure revenues from the NFTs, was that referring to the Exiled Aliens drop and the Flower Girl drop, each one of them?

Yes. Each collection will have a total retail value in the seven figures. As we start this journey, it's important to note that the first collection, Flower Girls, sold out and achieved $2 million in initial sales. Additionally, they have generated over $13 million in secondary sales, leading to total collection revenue exceeding $15 million.

Great. Okay. And then, do you have any insights on the outlook for 2022? When I consider your Super Group’s business, I would assume that it should improve as the economy opens up and The Door recovers, likely leading to increased cross-selling year-over-year. As for 2.0, it seems to depend on when everything will start to happen. Is there anything else you can share about this, and should we consider any seasonality in the business?

Sure. Yes. No, thank you. We think so too. First quarter is always the slowest for many of our subsidiaries. So, it wasn’t really surprising that last year, same was true. The first quarter was the lowest, but the growth has been steady. And as I mentioned at the top, it’s all organic, and there are no acquisitions that affected those numbers. Our last acquisition was effective as of January 1st of last year, the Bender/Helper. So, it really, quite frankly, we feel validated. It proved the thesis for Dolphin 1.0 that our acquisitions can cross-sell with each other. And the fact when you have the leading or the leaders in their respective fields. I mean, let’s just brag about 42West for a hot second, to be ranked, the second most powerful PR firm in the country, right, in any industry. Again, the leader in entertainment, then you’re going to receive your fair share of the growth of the industry. And the advent of these streaming services, I think probably everybody on this call subscribes to more than one streaming service. As we like to say back in 2018 and 2019, when we were putting the Super Group together and was on the road, there’s going to be all this content coming. Somebody’s got to promote it, right? So, this organic growth, the cross-selling, it’s working, we’re growing. And then, why we think we built a better mousetrap was that we could take our profits and invest in owning some assets that we could take, obviously, we’ll have much bigger upside if we own the assets that we’re promoting. And I’d be remiss if I didn’t point out the Crafthouse Cocktails example. I mean, here’s an example of what we can also do. There are a lot of companies out there that have consumer products or live events that would want this group of marketing leaders to market their product. So, we can better monetize our services by taking a cash fee every month like we would normally do than taking an equity stake in the venture to be able to access the 42West and the Shore Fires and the Be Socials because they know that if we market their products or services that they’re more likely to achieve their goals, whether it’s to do a fundraising round to sell the company, to just grow the company, have some type of liquidation event in the future. So, that’s exciting for us. Those types of deals are equally exciting for us. And then, when you add to that, the huge optionality of something like a Midnight Theater, or an NFTs business, then that’s what we mean by we think we have a better mousetrap. We have the optionality of big swings like biotech companies or others, but we’re not the leading cash along the way. We’re actually making cash along the way. So, that’s I think our outlook for 2022 is the satisfaction of getting to this point. 2.0 is going to generate revenue just a couple of months. Midnight Theater’s open, Flower Girls will have an announcement, we’ll have Creature Chronicles on sale. That’s all very exciting for us.

That’s great. And then, on average, the margins will be higher than your company average for 2.0. Is that reasonable?

Yes.

Then Super Groups, I mean, 2.0 will be higher than Super Groups?

Yes, we have a very robust services business, as many people familiar with our story have observed its development over the last four years. However, having spent 20 years in content ownership, I can say that owning the asset you market results in significantly higher margins. For instance, while we can provide excellent marketing services for James Bond, the owners of that franchise will earn much more than we do. This principle applies universally; whether it's a food festival, a music festival, or a consumer product, owning the product is far more lucrative. Some products also benefit more from marketing efforts—consider marketing liquor, beauty and cosmetics products, or perfumes. These require effective marketing to achieve consumer acceptance, unlike automobiles, where product quality is more critical. Our goal is to leverage our marketing capabilities to maximize financial returns for ourselves and our shareholders.

For the NFTs that allow you to create a brand, which can serve as an annuity with ongoing stories and drops, how many drops do you think are reasonable to conduct in a year?

That's a great question, Allen. We have a lot of experts on how marketing collectibles works in the analog world. The reality is that NFT collections have only been around for less than a year. So, we aim to provide a transparent answer. We plan to experiment and believe that the market can support at least two drops per year per brand, but we'll see if that's the case. A key factor will be how well we can engage the community, as many people buy NFTs to participate in online communities centered around the brand. We believe we have a significant advantage in delivering numerous community benefits, such as experiences and giveaways, which few others can match due to exclusive access to events. We're also excited about projects like Flower Girls, which boasts an excellent brand, appealing art, and a charitable focus. This presents various opportunities for brand extensions within that community. Some of these extensions align with our company's expertise, adding to our enthusiasm for partnering with this female-fronted NFT collection, which has already performed remarkably by selling out.

That’s fantastic. For Midnight Theater, I’m recalling that it’s a 160-seat venue. The restaurant has 75 seats along with a 20-seat private dining area and a 40-seat bar lounge. Are there any public companies you could suggest to help us model this based on the number of seats and assumptions? Do you know if there’s an industry rule of thumb for that?

Yes. Without going into specific guidance or anything, it’s a complex situation. I’m looking forward to discussing Midnight Theater more in future calls. If you think about similar venues, there are certain groups with a strong reputation, like TAO, which Madison Square Garden acquired, or others that could establish locations across the country and worldwide. Our unique advantage is that our venue will feature a high-quality restaurant and bar, but also a theater for live performances. We believe we are well-positioned not just to attract visitors but to build relationships within the industry. There's really no direct comparison. In the past, House of Blues comes to mind, but they focused solely on music and may not have considered their restaurant and bar offerings in the same way. However, we see a significant opportunity here. Many people on this call are in New York City, where very few venues can provide a complete night out in one place, and we can. It’s located in an impressive complex that takes up two city blocks, built by Brookfield. Directly across from us is Danny Meyer’s restaurant, which was recently nominated for a James Beard award. If you’re looking for a combination of entertainment and a high-quality restaurant in the same venue, we believe we offer something distinctive. As you model around those types of comparisons, you might come close to our positioning.

Okay. Great. And you have so much on your plate, does producing movies still fit in there, or is that a maybe, or how do you think about that?

Allen, I believe you'll need to wait just a little while for that vertical to open up for us. Referring back to 2.0, we’ve consistently indicated that the four pillars for us involve taking ownership stakes in other companies, such as Crafthouse and FanJolt. We will also focus on creating our own content, which is still in the works but requires patience. Additionally, we are initiating our own consumer products, which has already begun, encompassing various categories, including NFTs, and our Midnight Theater project. Furthermore, we will be hosting our own live events. I think it's reasonable to anticipate that the content vertical will be available soon, while the live events are likely to take place closer to the end of the year due to obvious reasons. We are emerging from COVID and feeling optimistic. The music tours our clients have booked are solid, and music festivals are reopening. There is a significant demand for live entertainment, so we expect to venture into live events by the end of the year and introduce content even sooner.

Great. I understand you’re not providing guidance, but could you share your thoughts on how you're approaching the balance between managing revenue growth and expense growth?

Sure. I want to commend Mirta and the Dolphin team for their efforts. Last year, we stated that we would manage our resources to fund the 2.0 investments in 2021 using the cash we generated. I'm pleased with our outcomes on the profit and loss statement, taking into account noncash items like depreciation and amortization, as well as changes in the fair value of contingent consideration. We achieved positive operating income after making investments in the NFT marketplace and other areas. I believe our revenue will continue to grow, and so will our operating income. It's about identifying the right opportunities and deciding if we want to pursue them, while managing our cash wisely. We are profitable and growing, and I expect this trend to continue as we invest. The 2.0 investments should deliver significant returns in a short timeframe, requiring only a small portion of what we're currently earning. We are being cautious in our decisions as we grow our profits.

Up next, we have Greg Greenberg, private investor. Greg, your line is live. Can you hear us? It seems Greg is experiencing technical difficulties. I will put you back in the queue. Up next, we have Brian Swift with Security Research Associates.

Hi. Last year, there were many noncash charges, which I assume were from a previous announcement. You mentioned completing only one deal in January this year, although you hinted at the possibility of more deals in 2022. How do you foresee those charges? Are they a one-time occurrence, or should we expect to see more of them? It seems to have significantly impacted your year-end statement, suggesting a loss instead of the positive cash flow you previously discussed.

Sure, thank you for the question, Brian. Last year, we had some fair value instruments that were expiring, which resulted in significant fair value fluctuations each quarter. When we acquired the companies in the Super Group, many of those acquisitions included earnouts, representing contingent consideration. I'm pleased to report that the companies performed well in meeting their earnouts, which is positive, but they also led to noncash fluctuations. We are nearing the end of this situation; after last year, only one company remains with an earnout that we expect to be met by the end of this year. Many of these noncash items are set to expire soon, and it's likely that they will all be resolved by the end of the calendar year. We are almost done with these noncash items. Depreciation and amortization will continue for some time, but the larger noncash items that contributed to significant swings last year should be concluded by the end of this year.

Next, we have Greg Greenberg. Greg, can you hear us? Your line is live. Okay. He has technical difficulties. We can’t hear you from our side, Greg. We have no further questions in the queue. I’d like to turn the floor back to Bill O’Dowd for any closing remarks.

Thank you. Greg, if you're there, please reach out to James Carbonara, and he can help set up the call for you. I understand it must be frustrating to have technical issues. James has been doing an excellent job for us, and it was a pleasure to recognize him in a lighthearted way. Thank you to everyone following our story. We are proud of the achievements over the past year, having reached some significant financial milestones, but this is just the beginning. The purpose of our company is the next phase, and we are excited about the investments we have made. We are interested in both types of investments in the next phase: those where we take smaller stakes in other companies and those where we take a more significant role and a larger stake in developing assets. We believe that our combination of profitability and growth in these areas sets us apart and will hopefully encourage people to invest and join us on this journey. Thank you to those who are involved, and I look forward to speaking with everyone again in a few weeks. Thank you all for your time. Goodbye.

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