Q3 2019 Earnings Call
Ladies and gentlemen, thank you for standing by and welcome to the Q3 2019 view weight earnings Conference call.
At this time all participants are in listen only mode. After the speaker presentation, there will be a question and answer session.
Good question. During this session you want me to press Star one on your telephone. Please be advised that today's conference is being recorded if you require any further assistance. Please press star zero I would not only to hand the conference over to your Speaker Ms. Mackay live going head of Investor Relations. Please go ahead man.
Thank you Shirley good afternoon, everyone welcome to be raised third quarter for 2019 financial results Conference call. Joining me today, It's Dr. <unk>, our president and Chief Executive Officer earlier today do you already issued a press release announcing its third quarter 2019 financial people.
Well leases available on the Investor Relations portion of our website at Www Dot D. Ray dotcom.
This call is also being broadcast live over the Internet via our Investor Relations site and a replay of the call will be available on the website for 14 days.
Before we begin I would like to caution listeners that comments made by management. During this call may include forward looking statements within the meaning of federal Securities laws.
These statements involve material risks and uncertainties and actual results could differ from those projected it any forward looking statement Judy numerous factors, including those discussed in the risk factor section a decrease Form 10-Q for the quarters ended June 30, and September 30, 20, my team and any subsequent reports filed with the security.
He's an exchange commission, including our Form 10-K for the year ended December 31st 2018.
Furthermore, the content. This conference call contains time sensitive information accurate only as of today November 12 2018.
Hey undertakes no obligation to revise or otherwise update any statements to reflect events or circumstances. After the date of this call.
I will now turn the call over to Scott.
Thank you Mckay look good afternoon, everyone and thanks for joining our call.
Today, we will begin with an update on patients treated with meridian.
Discuss Q3 results and the progress we're making across the organization.
Review, our financials and then we look forward to answering your questions.
Over the past quarter I've had the opportunity to engage with dozens of customers across the globe.
It is increasingly understood that we provide leading clinical capabilities and our customers are taking notice.
Our direction is clearly in line with market trends, we provide noninvasive personalized medicine that our constituents patients providers physicians and payers are seeking.
Or 32 systems around the world have no treated over 6500 patients and our clinical evidence of compelling outcomes with zero grade three or higher toxicity continues to grow.
Broad utilization of Meridian is critical to driving therapy adoption globally.
As we speak we're bringing meridian to patients in a new geography, the United Kingdom.
Our first system to be up and running in the near term insight preparations are underway for our second UK system.
Customers are looking to safely deliver high dose beam gated SPR TD and we are exceptionally well positioned.
Well the competition tries to draw similarities to our offering no one can see shape and strikes the tumor like meridian.
A recent example demonstrates our differentiation.
Oh patients had been receiving treatment at a premier academic institution in Texas.
His radiation oncologist grounded in the capabilities of Meridian referred the patient to one of our programs in Miami for treatment.
In fact, several patients at this major institutions have been referred to Meridian centers.
Patients are also taking notice.
And another one of our leading sites there is a four week treatment waiting list.
This demand is driving interest in increasing meridian capacity in this mid western catchment area.
Also impressively a new reactivated customer conducted multiple adaptive treatments on day one.
They have conducted more than 40 adapted fractions in their first month.
They're educating patients on the merits of meridian in the northeast and beyond.
As we now have four full quarters under our belt, let me share the foundational work we have done to prepare for our path ahead.
We have built up our team across all functional areas.
Several of these functions either didn't exist a year ago, well have been significantly enhanced.
I would highlight progress in areas such as bolt readiness dedicated field service customer clinical training in our clinical studies team.
Concurrently we have increased our investment in our commercial clinical and innovation pipelines you.
It is important to recognize the newness of our team and the initiatives we're pursuing to drive this new paradigm of care.
We're making progress across the company while we're in the early stages of commercializing. This next generation therapy.
We have listened to and heard our customers clearly.
They desire simplified workflow and faster treatment times for high dose adaptive SBR tea.
Our efforts are directly responsive.
We're launching new software and a faster MLC early next year.
We will continue reducing treatment times and anticipate that later in 2020, well launch another upgrade on a path to sub 30 minute treatments.
These advances will put us on parity from a standard SPR key treatment time frame, yet with significantly enhanced additions of adaptive hi, jokes auto beam gated therapy.
We believe this critical capabilities that will stand alone.
Moving onto Q3 results.
Revenue in the quarter was 20.9 million, primarily driven by three revenue units.
We took eight orders in Q3, including three upgrades.
During the quarter, our backlog grew to approximately 231 million.
As mentioned on our last quarter's call we have built a highly capable operations team.
For projects that are in advanced stages of customer permitting and planning we have the ability to drive PEO to first patient treated down below 12 months.
We have successfully achieved this in multiple instances.
We have also experienced delays when customer preparation is not as advanced which can extend this process significantly.
And these instances where simply moving at our customers pace as we believe this is ripe for long term relationships.
We have also received multiple orders from customers that are building new cancer centers.
Although they want the latest technology, we may see elongated time frames here as well.
The punch line, we now have the capability, we set out to build and view this variability as the nature of our business.
Turning to cash or cash utilization was approximately 31 million in the quarter.
This was as anticipated.
Regarding the capitalization of the company, we have listened carefully to investors and worked hard to create optionality.
The path. We're on we believe is right in line with the best interest of investors.
As definitive agreements are not yet in place we will not sure further details as we cannot guarantee the outcome I.
I will reiterate that we're working on a solution that is directly responsive to investors and also in line with the long term goals of the company.
I will now turn the call over to Mckay love to discuss our Q3 financials.
Thank you Scott for the fiscal quarter ended September 32018, total revenue was $20.9 million, primarily from three revenue units as compared to $17.7 million and three revenue units in the same period last year.
Total cost of revenue was $20.3 million compared to $17.3 million in the same period last year.
Total gross profit was zero point $6 million compared to zero point $4 million over the same period last year.
Total operating expenses were $32.3 million as compared to $24.5 million for the same period last year.
Finally, net loss for the quarter was $20.8 million or 21 cents per share compared to $32.9 million or 39 cents per share for the same period last year.
Turning now to orders and backlog.
In the third quarter of 2019, we received eight new orders, including three upgrade totaling approximately $35 million as compared to orders totaling approximately $36 million for the same period last year.
As of September 32019, our backlog stood at approximately $231 million compared to approximately $201 million as of September 30, 28 team.
One system was removed from the backlog and the third quarter.
I've previously shared we used approximately $31 million of cash we ended the quarter with total cash and cash equivalents of approximately $91 million.
Lastly, we are reaffirming our guidance for 2019, we continue to expect total revenue to be in the range of $80 million to $95 million and cash used to be in the range of $80 million to $90 million for the full year.
And with that we will now open the line for question.
Thank you as a reminder to ask a question you want me to press Star one on your telephone we I see you. Please limit yourself to one question and one follow up question. You May then returned to the Q to withdraw your question. Please press the pound key please standby, while we compile the Q and a roster.
My first question will come from Chris that's well with Guggenheim.
Thanks, Scott I just wanted to follow up quickly on a couple of points that you made in your prepared remarks.
One did I hear you correctly that you expect to be it as 30 minute treatment times by late next year and then just on the financing front do you have a sense for when you might be in a position to share some of the things you guys are working to.
Thanks, Chris I think I don't want to make any hard declarations I think we're making very steady progress.
The reduction in treatment times.
Some of those things are innovation based.
Others are more best practices base that we're spreading.
Training of our customers and identification of those best practices.
I think we will continue to make very steady progress throughout 2020, I would say, it's a little bit site dependent and a little bit cancer type dependent as well I would anticipate.
Tricky cases, such as some pancreas cases would take longer than than some breast and prostate cases. For example, so I think it's difficult to make a patent comment but I do believe we will continue to make very steady progress and as it relates to the financing Chris I'd Love.
To be able to share more specificity of with you.
Given that definitive agreements are not in hand, and completed I just can't say any more than really what I said in my prepared remarks, Oh, we'd like to path. We're on we think its responsive to investors. We think it's very good in terms of the long term needs of the company.
But really can't say anything until we have ink on paper.
Okay fair enough.
And then just last one for me curious whether the pace of activity has changed at all since Astro or maybe as customers have started to get their arms, a little bit more around the P. M. A just your thoughts on the trends over the last a couple of months here. Thanks.
Yeah. Thank you Chris Thanks for your questions I would say the pace of activity at Astro was demonstrably higher this year than last by some factor I recall little over a year ago, what Astro we would have several executives in meetings.
And not not nearly as many as I would have liked this year, we had to divide and conquer we had executives in different rooms, and just kind of a onslaught of meetings. So the activity level is clearly higher.
And I anticipate that that will continue.
Going forward the number of customers that were calling on.
It's also higher than it was before and we measure that in our.
Pipeline reports, so I would say that activity levels are increasing.
And I like the way that our customers are responding to our value propositions.
The only thing that I would say very quickly on the heels of that Chris.
I said it last quarter I want to say it here I.
I think it's easy to make too much of a quote unquote low order quarter or a quote unquote high order quarter.
And I said that in Q2 I want to say here again in Q3, I I think we're just going to have variability for a period of time, when we're dealing with the small numbers.
Until we're able to really drive this paradigm shifting technology more deeply into the market.
Thank you. Our next question comes from Surat's Calia with Oppenheimer.
Good afternoon, everyone can you hear me all right well.
We cancer Raj good afternoon, so Scott congrats on a quarter.
Let me follow up on presses question, then it's it's safe to say when you're talking about definitive agreements that as some sort of for arrangement for the strategic in the works would I be too far off and that assumption.
You know I, just I just can't comment there surajit <unk> like I said I wish I could give more specificity I know.
Investors are curious about it and I very much appreciate the thrust of your question I just can't go more deeply into with.
At this point in time, but we look forward to sharing more when we get too definitive agreement.
Do you anticipate that before the ended the year or there is a possibility it could get stretched out into Q1.
Yeah, like I said I'd love to give you more specificity I think what we're doing is responsive to what we've heard from investors and in line with their desires.
And also obviously in line with the long term best interest of the company I just I can't share anymore. At this time fair enough. One more question Scott on I'll hop back in Q4, the 6500 patients treated so far it Scott can you give us how the pie chart looks on.
Patients treated on Atlantic versus cobalt and if possible on what specific indications.
Have these patients being treated like what's the maturities at prostate as it press.
Any color Dave would be great. Thank you for taking my questions.
Yeah happy to see Raj I, Let me, let me provide some color there.
And if we don't totally scratched, the which were happy to do a follow up with you on this.
The majority of the patients have been treated.
On the linear tech.
Versus cobalt I don't have an exact breakdown for you there and what I find very interesting.
In terms of the Pie chart of the cancer types that had been treated.
It's it varies pretty significantly from one customer to another.
Which is which is interesting and I think reflective of a couple of things.
We have customers that have treated you know what a preponderance of their patients in breast cancer, another account prostate and another still.
Would be pancreas so.
What it tells me is the the breadth and utility of the system on one hand on the other hand, I think we can do with better job of spreading best practices as it relates to the capabilities that our system has.
And that's the work that you're now seeing some evidence of.
Customers that are coming online doing adaptive treatment day, one and in their first week of treatment treating multiple forms of cancer and even customers that have been with us for some period of time more extensively and more deeply utilizing the full capability set of Murray.
And so I'm pleased with the work that we're doing on that front.
And we'll continue I think to expand the utilization of the system, both at Curtis current accounts and new ones as well.
Thank you.
Thank you. Thank thank you. Our next question comes from Matthew O'brien with Piper Jaffray.
Afternoon, Thanks for taking my questions.
Scott can you just talk a little bit you know there was a lot of dynamics going on in in Q2 as far as system deferrals and.
No.
Both from the distributor respective internationally and then there's some other things here in the U.S. So have any of those dynamics either loosened up a little bit you still feel comfortable that you're going to convert all those into system sales and what I'm getting at is in Q4, he that you're really assuming a pretty modest.
Revenue number to stick with the midpoint of the range. So.
Is there anything that gives you more or less comfort in the lower end or the high end of that range.
Yeah, Matt Thanks, Bruce Thanks for the question you know just in line with what we said in Q2.
Those dynamics of the the to distributor deals and the the three.
Customers that had elongated time frames, we remain convicted that they will all be meridian customers.
In a longer period of time than we originally hoped for so I don't think theres any change on that front and as it relates to revenue that's pretty well baked.
Relatively far in advance and so I wouldn't anticipate.
Anything demonstrably different than what we have been guiding to here and.
I would leave it at that.
Okay, and so so as we think about the organization today, you know it sounds like the team as well set installation wise salesforce coverage everything else I look at the business. The last couple of years, you've kind of done mid teens in terms of new system.
Installs for the last couple of years. So do you think as we it was the head into 2020, not wanting to get into guidance too much here, but as we head into 2020 that that the activities as the team is set up to do something you know meaningfully higher in terms of installs as we get into 2020 versus what we've seen last couple of years.
Yes, Matt I would you know where we're not going to guide to 2020 at this point, but I would share with you that we have built the capability set I think the punch line is we have built the capability that we set out to build.
Really across the organization, but specifically from an installation standpoint.
And we are moving at our customers pace, where they are a bit slower either on the planning or permitting phase or as I mentioned, where there is a brand new cancer center being built we really can't influence that timeline and we're moving more at our customers pace.
What we're doing is trying to be very appropriately aggressive getting our word out in our value proposition now, calling on more and more customers and delivering those value propositions more and more effectively and then we're into position with the capability to install the systems as quickly as our customer.
Mers.
Our really ready for us to do so.
And as I've mentioned, you know we've done that PEO to first patient treated inside of 12 months now on multiple occasions, and we're comfortable with the capability that we've built there.
Helpful. Thank you.
Thank you.
Thank you. Our next question comes from Anthony Petrone with Jefferies.
Great. Thanks, maybe one Scott to sort out just on the clinical data front apologize for the background noise is traveling.
Just on a clinical data front, how the prostate data was received so far.
The next steps with the prostate study.
And then what we should expect for the smart.
Pancreatic cancer study do you do you still expect toxicity data and the next several months to two two quarters or so and then on the follow up thanks.
Yeah. That's that's great Anthony Thanks for the question I'll start kind of high level in Nash our to to try and then as I mentioned.
I've had the opportunity to interact with dozens and dozens of customers literally across the globe.
Multiple continents here in the last quarter.
I think the prostate data is resonating very well.
The fact that there was zero grade three or higher toxicity.
And grade to toxicity.
Was much lower than the investigators actually anticipated.
I think that is noteworthy as well I'm sure do you want to comment at all on.
What you've seen on that front.
Hello.
Yeah.
So if you look at our data that we're still in the early stages I'd say of our team deploying that and using that data with customers. I think what's interesting is we've done the analysis and built up our contract.
If you look at that shipping Hydro studies.
Great to a higher toxicity.
Actually increases for GE.
By over 40% when you go from.
Conventional fractionation about 39 fractions to hyper fractionation 20 fractions.
When you go to five fractions on the Meridian actually dropped 90% and that's.
Hi, track, we're creating and getting our team.
Prepare and using with respect to customers.
I'd say, it's early days as far as that's related.
It was clinically important understand is excellent includes spacers all institutions.
For our system by fractions and the only way to really do that is it more guidance and AMR and on table adaptive therapy is key elements of it but it's also the real time tracking in the real time gating. So it's a combination of all of those and really getting the message across.
That.
And ladies.
All in combination drive these clinical outcomes, Bob just at heart.
Hello.
And these were for moderate to high risk.
Prostate patients, whereas some other studies were more for earlier stage.
So we're excited about the data and what that this means for patient outcomes, but I'd say again arming our team and getting up to speed clinically any early days of that.
Anthony I would I would follow up in and share I think you were looking for more color on kind of follow one data interesting there was a publication the Green Journal came out.
Peripheral lung study.
53, I think 53 or 54% Ptv with meridian than conventional.
Linux in this peripheral lung study these are the kind of capabilities that we bring the aggregate.
Set of capabilities Ashar mentioned are critically important to be able to do these kinds of things and we're very excited and continue to drive that that compendium compendium of data.
As it relates to the smart study.
It's enrolling very nicely, we're we're bringing more and more new sites into the study.
We have agreement one thing Thats a.
Relatively new here, we're not gonna have to do the pause of the study that we originally anticipated that we might have to do.
So we're going to be able to continue with.
Enrollment on that front, which is good news in terms of the overall pace of that study in being able to get the data out so Anthony hopefully that answers your questions.
Happy to entertain any follow up well yeah, yeah, very very helpful. In just a follow ups would be just an update on the competitive landscape, obviously electus out there now for a bit of timing.
Variance talking more about adaptability with some of their new solutions. So just any update there and and just lastly, a quick one on the financing just to be clear is that.
Viewray specific financing or is that customer financing. Thanks again.
Let me take the in reverse order the financing that we were referring to was the capitalization of the company.
And as it relates to competitive dynamics.
I would tell you that I think what's going on competitively in the market is actually helpful to us.
Because as we're out there talking about the full capability set being able to track soft tissues in tumors in real time being up stable being able to automatically gate the beam hitting the tumor within ablative dose, while concurrently preserving organs at risk and healthy tissue.
That stands in pretty Stark contrast to what others are out there talking about and.
I don't diminish what's happening at all competitively, but I think the more we talk about and articulate our capabilities. The more Stark contrast is with what others bring to market and I think we're getting better frankly, a telling that story.
Very helpful. Thanks.
Thank you.
Thank you. Your next question comes from Difei Yang with Mizuho Securities.
Hi, good afternoon, and thanks for taking my question.
So Scott if you could help us to put things into perspective.
Thank you mentioned.
Zero grade three.
Side effects and so typically for a typical SBR key treatment with guard list the cancer type what should we be expecting there and then I think early in the discussion you also talked about.
With additional improvement you can.
She you can bring down the treatment time down to 30 minutes or less and so what is currently what is the current treatment range time range then finally.
Any of the plans to bring down Backorders.
Thank you.
Yeah, you're welcome. Thank you for your questions. Let me, let me attempt to answer all three of them Difei and hopefully I'll I'll hit the Mark here for you regarding your first question. It is very difficult to give an apples for apples comparison because of the capability.
Use of our system and the limitation of others.
To give you context, there the overall market in the US for example, treats with SPR T something like 15% of the time.
And yet our customers are treating with SPR T. Even high dose SPR T, 75% to 100% of the time. So it's just very different in terms of how our says how our system is utilized because of its capabilities.
And how competitive systems are utilized because of their limitations and that's exactly why we are so steadfast at driving the clinical pipeline to prove that we can do and frankly to prove what others cannot so it's very difficult to give you an apples for apples on.
On that front.
As it relates to the treatment time frames, let me give you a little context there.
The current timeframe to do SPR tea in the marketplace generally is give or take 30 minutes that timeframe that we're shooting for.
What we bring to that equation high dose beam gated SPR tea, which is different than what is delivered.
Generally speaking from an SPR tea.
Perspective, so it's it's kind of an apples for Orange is there even though we believe we'll be able to get into.
That that timeframe and many fewer treatments.
Generally then what is conventionally considered SPR tea, which can be many more treatments that are five or fewer or in some instances just one fraction.
With US can you remind me of your third question defect.
Yes, the final weighs on plans to bring down Backorders.
Yeah. So.
To bring down the backlog you know, it's really in line with what I shared in my prepared remarks.
When when planning and permitting goes at a good pace, we can move very very swiftly.
And when that's not the case, we're just moving at our customers pace. So we're trying to make it very clear that we have built the capability set to move quickly and we will do so when our customers are prepared for that and when and when they are not we don't believe.
Having friction with them trying to drive that falsely you know to our timeframe is beneficial for long term relationships. So we're trying to be really clear on one hand that we that were well equipped to do with.
Relatively quickly and on the other hand, we're moving at our customers pays where we think thats appropriate.
Okay. Thanks for taking my question, just just to clarify on the back order. So somebody like installation capability is no longer a.
Bottleneck is that the right understanding.
That is that is the correct understanding.
In Q.
Thank you. Our next question comes from Jason Bednar with Baird.
Thanks, Good afternoon, one the first asking your conversations just round multi unit orders I don't think we heard an update here Tonight on this effort just a threeq you obviously had to Penn State health win. So just how would you characterize the state of your conversations around these efforts today versus maybe for your said in year, three or six months ago.
Yeah, Jason Thanks for the question I would say.
You know the same commentary that that I shared last quarter I would share again.
We're calling on more customers than we ever have before they are more multi system.
Deals in opportunities out there.
Than we've ever had previously.
You know, we're cautiously optimistic on those fronts.
So I think kind of more of the same in terms of those multi system opportunities.
Other than the fact that perhaps they've matured a little bit since last we spoke.
Okay. That's helpful. Scott and then maybe just a few questions on the.
Software and hardware upgrades you discussed on so I guess can you quantify the step change at all we'll see in the treatment times with the plan Rollouts next year and do you plan to charge for these upgrades.
And then not sure if any of this is tied to the small licensing you did a couple of months ago with a with B U N C. But can you get to the sub 30 minute target with your own internal efforts or do you think you need to do more of these types of partnering or licensing.
Yes, so I think there's there's a lot there to unpack I would share Jason that I think.
The pathway to those sub 30 minute treatment times is one that I think we have a clear line of sight on.
The team is actually not going to stop there. We think we can get beyond that both with innovation and best practices, but our first goal is to get consistently below 30 minutes.
It's going to be easier in some cancer types harder in others.
And as I mentioned, there's a certain amount of it that innovation driven.
In a certain amount of if thats best practice is driven so it's a balance of bowl and and those customers that are utilizing our system very effectively today. The ones that are doing on table adaptive treatment of very high percentage of the time.
I would I think it's reasonable to think about those customers that more is going to come onboard gain is going to come from innovation there.
Because they've probably done some work to optimize already.
But in other instances there may be a lot of gain in terms of best practices, but clearly innovation will help across the board those things that we have coming and even things that we havent fully shared externally at this point.
Okay. Just real quick just do you plan to charge to the upgrade zeroing on next year, if you're not just can disclose that yet.
We do we do we do plan to charge for them there have been some instances where.
Commitments have been made previously on on some of these upgrades, but we absolutely plan to charge for those things that have value to our customers.
Great. Thanks, so much.
Thank you.
Thank you. Your next question comes from Andrew what would be Ramey STR.
Hey, good afternoon. Thanks for taking my questions sorry, if you ask any of these I was jumping between calls but could you just give me some of your cash flow items far stock based comp.
Depreciation and amortization and then what a free cash flow was for the quarter and then.
Could you also let us know why one of the systems fell off was it same reason that you had last year for a few systems or something different.
Hey, Andy let me handle your questions on the financials, and then I'll hand, it over to Scott for the backlog.
Stock based comp in the quarter with $4.9 million depreciation and amortization was $1.2 million and cash used from operations was 27 million.
And Andy regarding to system that came out of the backlog our criteria. There is both time based and activity based.
For our assessment on the backlog.
So if we if we just don't.
Like either the timeframe or the level of activity happening with that customer. That's when we will take them out of backlog and that's what happened in this particular instance to be clear, we still have an order from the customer and our hope is to make them a meridian account.
But we're just not satisfied on our criteria and so they came out this time.
Okay, Great and then.
As far as a strategic direction goes.
Kevin should pay joined the board.
He's from focus on obviously, a big investor.
Previously noted that you weren't really focused on China any sort of a change of stop there and when my last question is just related to the Varian litigation.
Just where are you in that process and what are what are the next steps.
Yes, let me, let me flip the order regarding the IP suit.
We do not believe that Weve infringed on any valid claims.
Period.
And as it relates to Kevin joining our board, we're thrilled to have them.
They are along with a very large investment that they've made in the company.
They had the the right to what take a board seat.
Kevin is a highly constructive and well informed.
Board member and.
We're thrilled to add him to walk through our board.
Okay, but no no no direction change with China.
As of this year.
You know nothing nothing to announce.
I just got back from China. It is the second largest linak market in the world.
It's the fastest growing linak market in the world there are about tripling their capacity as you're aware.
So we're keenly interested in that market, but I have no announcements to make.
Okay, great. Thank you good luck closing up here.
Thanks, Andy.
Thank you operator next question comes from David Lewis with Morgan Stanley .
Hi, This is my son on for David Today. Thanks for taking my question Scott you lose this earlier in the year, but was wondering if you could provide a little bit more color on any potential alternative customer financings you would consider any timelines, we should be thinking about there.
Yeah. Thanks Mason, So we're still in what I would qualify as kind of pilot stage with.
Those those various financing forms that we're talking to our customers about I don't think there's anything here that's new to the industry. There are some things that you know are newer to us, but things that that others offer.
Don't have anything of note to share with you today on that.
Great and then just as a quick follow up any update you could provide on on the new CFO search.
Yes, no nothing nothing really to share we've got to retain search underway we've got a.
A pipeline of candidates and Fortunately with the team that we have we can be very patient.
In making a choice there and that's what we're doing but just steady progress I would state.
Great. Thanks very much.
Thank you Mason.
Speakers I'm showing no further questions in the queue at this time I would now like to turn the call back over to management for any closing remarks.
Well. Thank you so much for joining US everyone. Today, we look forward to further updates moving forward I Hope you all have a great evening.
Ladies and gentlemen, this concludes today's conference call. Thank you for your participation you may all disconnect.