Q1 2020 Earnings Call

[music].

[music].

Hello.

And welcome to the co address bio Sciences first quarter 2020 financial results and business update conference call.

Currently all participants are in listen only mode.

Management's prepared remarks, we will hold <unk> session to ask a question at that time. Please press the star key followed by one on your Touchtone phone. If anyone has difficulty hearing the conference. Please press star zero for operator at system.

As a reminder, this call is being recorded today Thursday May 720, 20, I will now turn the call over the John Menditto, Vice President Investor Relations and corporate communications as collateral Yes. Please go ahead Sir.

Good afternoon, and thank you all for participating in today's call.

Joining me today, my management team or Dr., David not the President and Chief Executive Officer.

After Douglas Lasorda, Chief Medical Officer.

Earlier today, we issued a press release announcing our 2021st quarter financial results.

If you have not received this news release or if you would like to be added to the company email distribution list. Please email me at Jay even veto quadrants dotcom.

Before we begin I will remind you that comments made by management. During this conference call will contain forward looking statements that involve risks and uncertainties.

Regarding the operations in future results with <unk>.

We encourage you to review the company's filings with the Securities Exchange Commission, including without limitation. It's forms 10-K, 10-Q and need to which identifies specific factors that may cause actual results or events to differ materially from those described in the forward looking statements.

Furthermore.

<unk> kind of this conference call contains time sensitive information that's accurate only as of the data to live broadcast Thursday may seven 2020.

Well I, just bio sciences undertakes no obligation to revise or update any statements to reflect events or circumstances. After the date of this conference call with that said I'll now turn the call over to Dr. about it.

Thank you John and good afternoon, everyone. Thank you for joining us on today's call.

As with many things during the cold with 19 pandemic the organization of our quarterly call has been adjusted to accommodate the work remotely and practice social discussing rule because the first time quadras participants to this call or not in a common location using a common phone line.

The only hope that there will be no technical issues, but ask your indulgence an advantage there already.

Also in recognition of these unprecedented times I'll start by wishing you your families and all your loved ones in friends. The best possible help now and in the future. Please stay patient and safe as you conduct your daily activities and we join you were looking forward to returning to a sense of normalcy in the hopefully not too distant future and now to our business.

Today I'm pleased to provide a business update on our CD 34 positive cell technology based clinical development programs, especially our newest program CLP S. One one night for the treatment and repair of Cobas 19 induced lung damage in that regard I'd ask Dr. Douglas sort out our chief Medical Officer did you.

Joining us to provide some more specifics on the rationale for the program and why we believe this will be a much needed treatment for patients who bought covert 19.

I will then provide an update on our portfolio of ongoing programs, including CMBS 12, as a treatment for critical limb ischemia see alike in Japan she'll be a 16, because the treatment of coronary microvascular dysfunction C. N D and CMBS 14 for the treatment of no option refractory disabling Angela nor does.

But before I go through the programs I'll turn the call over to our CFO John Calamos for his review when commentary on a quarterly financial results as well as our recent funding activity.

Most of the first quarter Joe.

Thanks, Dave and good afternoon, everyone.

I'm pleased to provide it would view about first quarter financial results along with two notable funding events in April that's significantly strengthen our balance sheet and extend our one a cash runway.

Overall, our net loss for the first quarter 2020 was $4 million or 38 cents per share.

Compared with $4.4 million were 44 cents per share for the first quarter 2019.

Research and development expenses for the first quarter 20, $21.5 million at 26% decrease compared to $2 million for the first quarter 2019.

Research and development expenses in both periods focus on the advancement born skiing prepare platform more specifically during the first quarter 2020, our R&D expense continued focus on our ongoing registration eligible study well she'll be as well.

And you critical when the ski in Japan.

Along with final expenses for hours skate P.M.D. study was he'll be F 16 in coronary microvascular dysfunction.

Dave will discuss next steps for she'll be a 16 shortly.

General and general and administrative expenses, which focused on general corporate related activity when they flat and were approximately $2.6 million for both of course scored isn't 2020 and 2019.

Turning now to our balance sheet and cash flow.

As of March 31, 2020, we had cash and cash equivalents $20.7 million working capital of $16.6 million.

And then operating activities cash burn.

$4.2 million for the first quarter 2020.

We continue to manage operating cash burn effectively at under $5 million for the past four consecutive quarters, even while we advanced our research and development programs.

In addition to cash conservation you've taken measures to add cash to our balance sheet to provide even more financial security or company.

For example in recent weeks, we closed on two noteworthy transaction, that's significantly strengthened balance sheet in cash runway.

On April 22nd we once again demonstrated our ability to acquire non dilutive capital when we closed on the sale of a portion of where new Jersey net operating losses.

Net he $10.9 million of non dilutive capital.

As soon to the New Jersey Economic development Authority technology business tax your ticket transfer program.

It's program enables qualifying New Jersey based biotechnology company to sell a percentage of their new Jersey, and a wells two unrelated qualifying corporations.

Companies are eligible to participate in this program up to a lifetime.

Gross lifetime benefit of $15 million and you will continue to seek participation in this program in future years up to the lifetime caps subject to our continued eligibility.

This transaction will be recognized in our second quarter financial statement at the benefits in taxes and the credit on the tax provision line up.

On April 23rd we also closed on a $5 million registered direct offering price at the market.

Under the terms of the offering we sold approximately 2.2 million shares of common stock to several institutional and the credit it Didnt Masters and he purchase price of 2.31 to $5 per share.

Along with 50% unregistered warrant coverage at an exercise price from $2.25 per share.

We're pleased to have closed on this registered direct offering with the at the market terms given the current volatile public market landscape and in light of the difficulty that many companies are encountering maintaining new capital.

Yeah. We're also pleased to welcome several new institutional shareholders through our company and we'll continue to pursue opportunities to broaden our stock will the base as we seek the phone they're growing pipeline.

With these two recent influx ism capital.

We currently have cash and cash equivalents of approximately $34 million.

As we plan to initiate two new studies in 2020.

Concept study, which he L. B S. One main team for the treatment of and repair cold in 19 induced lung damage and a phase to be studied for she'll be a 16 and P.M.D.

We are projecting our operating cash burn, excluding the new Jersey, and a well sale proceeds to average approximately $5 million to $6 million per quarter for the full year 2020.

Overall, we remain confident that our current cash balance will fall under operation into the second half of 2021.

With that let me turn the call back today.

Thanks, Joe.

As I've done on previous calls I will begin by providing a high level summary of what we're doing a cloud dress and why we believe our development programs are increasingly relevant and attractive investment opportunities today.

Cloud. This is focused on the development of cellular therapies designed to reverse not manage disease and we have late stage clinical programs underway based on a large database of human clinical data.

Therapies to date have been shown to be effective and durable with a pristine safety profile and present the possibility of substantial pharmacoeconomic benefit.

Most importantly, we are working on products with the goal of providing patients with a single administration personalized curative therapy, rather than one that requires frequent chronic admits re administration.

Our CD 34 positive cell technology has led to the development of therapeutic product candidates designed to address diseases and conditions caused by ischemia, a condition in which the supply of oxygenated blood to healthy tissue with restricted.

Previously published preclinical and human clinical studies have demonstrated that the administration a CD 34 positive cells induces answer Genesis of the microvascular CER that is the T cells prompt the development of new blood capillaries, thereby contributing to the prevention of tissue death by facilitating blood flow to the area of the scheme to cancel.

We believe that several conditions caused by underlying husky mckendry can be improved pretty application of our CD 34 positive cell technology, including but not limited to cope with 19 induced lung damage critical limb ischemia coronary microvascular dysfunction and refractory angina.

We believe that Pat thousands of patients globally. We have survived coke at 19 will return home with long term effects of this terrible disease manifested has a debilitating lung damage. Many companies are searching for treatments for the acute effects of the virus and for a vaccine that work confection altogether. However, collaterals has taken a leadership.

Fishing in helping those patients who have beaten the virus, but have suffered potentially permanent lung damage in the battle.

I'll now turn the call over to talk to Douglas Sordo, the cloud, which chief Medical Officer, and our executive Vice President of R&D to present, the details of our C. L. B S 119 program Doug.

Thank you, Dave and it's a pleasure to speak to with all of you today and touch on this very exciting opportunity to utilize our technology.

To potentially reverse the lung damage caused by cobot 19th.

Initial evidence from the pandemic indicates that a large portion of the survivors of cobot 19 required Mentalist Tory support.

We will suffer long term debilitating lung damage.

In the aftermath of the first Sars epidemic. It was well documented that the Corona virus targets, So that express CD 34.

The resulting depletion of that cell population in the long is thought to be connected to the lungs inability to repair itself.

Furthermore, in the covert 19 pandemic emerging evidence indicates that the endothelial cells that line the micro about scripture a below our targeted by the virus.

And that the destruction of the long micro circulation, maybe a critical factor and the inability of belong to repair itself. Even after the virus has been eliminated.

Previous clinical trials in preclinical models have shown that cdthirty four cells [noise].

Them and regenerative capacity in multiple organs, including models of severe lung damage.

Moreover, there is evidence in preclinical models that we scoring microvascular function can trigger and sustain a regenerative process and the lump.

Therefore, we have opened and I envy agreed with FDA on a protocol and begun manufacturing preparations with the intention of initiating a clinical trial as quickly as possible to evaluate CMBS 119, our autologous cdthirty four cell therapy as a treatment to restore.

Our lung function, specifically in patients who experience a severe cases covert 19 and required mental towards support due to respiratory failure.

We look forward to reporting enrollment or the first patient very soon and providing updates on the results of what we hope is very promising outcome for these patients who have suffered through this terrible disease.

I will now turn the call back over to Dave.

Thanks, Doug.

I will now touch on the other the other exciting programs in our pipeline among others by Cdthirty four cell technology has spawned the development of our product candidate for the treatment of critical limb ischemia she'll be US 12, which is currently the subject of a registration eligible clinical study in Japan.

See Elias characterized by severe obstruction of the arteries that significantly reduces blood flow to the lower extremities, principally the feet and legs and represents the end stage of peripheral arterial disease.

Well I patients often experienced severe rests pain limited mobility, non healing skin ulcers, and if not successfully treated eventual amputation.

No that it is a well documented but not well known fact that seelye patients have a higher mortality rate than patients with most cancers.

Sure. Yes, 12 was awarded a sakigake designation from the Chaffin.

Ministry of Health Laboring welfare for the treatment of see ally. The Sakigake designation is a regulatory designation akin to an arm at designation in the United States and affords the recipient prioritized regulatory consultation.

Dedicated review system to support the development and review process, including the option of a rolling Jay and D.A. submission as well as reduced review time, a six month for the CLP US 12 registration application once filed.

So you'll be its 12 is also.

Eligible for early conditional approval and possibly full approval based on the compelling nature of the complete data from our ongoing prospective randomized controlled open label Multicenter study in CLL patients in Japan.

In addition to European Medicines agency grants its Lps 12 advanced therapy medicinal product or a T. M. P classification for the treatment of see ally.

Hey, T M Pesa defined as medical treatments that are based on genes were cells are intended as long term more permanent therapeutic solution to acute or chronic human diseases at a genetic cellular or tissue level.

This regulatory achievements set the stage trust to work closely with European regulators to define the most expeditious development and regulatory plan to registration I feel best wells in the U.

The ongoing study in Japan comprise the subjects divided into two cohorts are 30 subject group with traditional arteriosclerosis Ixia lie and a seven subjects, who put burgers disease. The type of zeolite often associated with heavy smoking.

Those are subject to a randomized to treatment or dose would still be asked well in a single treatment through a series of intramuscular injections. In addition to receiving standard of care pharmacotherapy.

Subjects randomized to the control arm only receive standard of care with drugs approved in Japan, including anti platelet agent anti Clackamas invasive dilator is the choice of which has made by the investigators according to the protocol.

The study allows for the rescue of subjects in the control arm, but indicating the crossover to treatment if they're see alike is deemed to be progressing.

The primary objective of this study is to show that CMBS 12 can prevent the serious consequences subsea like five reverting to patients to a C.L.I. free condition through improved blood flow in the afflicted Lynn.

See a life we status is defined as two consecutive monthly visits in which rest pain is absent and previous non healing skin ulcers are completely healed as determined by independent Adjudication Committee.

As previously reported that you can review in our corporate presentation on our company website. The responses observed to date in the burgers disease cohort are very positive and consistent with the beneficial therapeutic effect and safety profile as reported by previously published clinical trial in Japan, and the United States.

For patients with brokers disease, amputation, and even death unlikely outcomes and no available pharmacotherapy prevent amputation. However subjects in the fully enrolled burgers disease cohort in our study have achieved the remarkable remission rate of 57%, meaning that for up to seven subjects have now met the primary.

The endpoint and our C.L.I. pre.

It is worth repeating that the natural history of purpose disease patients discontinued disease progression, often leading to amputation. So our data are extraordinarily positive.

We're very encouraged by the study results to date and believe that they suggest a positive outcome for the overall trial, recognizing however that the final conclusions of the trial will be dependent on all data from all subjects.

[noise] enrollment in our trial continues to progress still like most companies executing clinical trials around the world. We are experiencing a slowing of enrollment that is unpredictable and its rate and duration. However, we're very encouraged by the patient Prescreening pipeline that has been identified and we hope to conclude the trial enrollment rapidly once the.

Corona virus abates, and physicians are again able to treat non covert 19 patients.

That said our current best estimate is that we will complete patient enrollment during the second half of this year.

With this delay the timing of availability of topline data for the full study will likely shift into the first half of 2021, leading to an earliest possible approval in Japan in late 2021 early 2022.

Regarding commercialization our strategy remains to license or partner CLP as 12 in Japan.

To that end, how conversations continue with prospective partners and we continue to seek to consummate a deal in concert with the completion of the study if not before.

Turning now to see obvious 16, a promising CD 34 product candidate for the treatment of coronary microvascular dysfunction.

Like all of our CD 34 positive cell therapy product candidates she'll be a 16 uses of proprietary and patented formulation of CD 34 positive cells specifically designed.

Before an injection at or near the site of excuse me insult, which indicates a C N D isn't infusion into a coronary artery.

So there'll be a 16 is the subject of the recently completed escaped CMD trial 20 patient proof of concept clinical trial evaluating she'll be a 16 as a treatment for coronary microvascular dysfunction disease involved the damage to the tiny arterial blood vessels, the micro circulation in the heart with no discern.

<unk> large vessel blockages.

Despite the absence of large vessel disease CMT patients have an equally poor prognosis related to major adverse cardiac events and debt as two patients will have identifiable large vessel blockages, but because obviously large artery blockages aren't C.C.M.D. is often under diagnosed this diagnosed and door.

Untreated.

It also should be noted that C.M.D. is more frequently encountered in females, making this an important emerging women's health issue.

So it'll be a 16 is designed to address.

And reverse the underlying pathology of CMT by employing the cdthirty four cells innate ability to increase micro circulation and thereby improves symptoms and hopefully improve the long term outcomes in patients with coronary microvascular dysfunction.

In November 2019 at the American Heart Association scientific sessions, we reported the data for those patients 17 of 20, who at the time had completed their six month follow up is it in our escape CMT study.

The data showed highly statistically significant improvement in coronary flow reserve correlating with symptom relief for patients with CMT. After a single administration of C. L. B S 16.

The you joining and asking that question I I'm going to turn that over to a doctor Lasorda once you've medical officer. He's obviously been intimately involved in the design and a can give you the answers to the questions you just ask Doug.

Thanks, Dave and thanks for that question, so I'll try to hit all the points that you you asked about.

Maybe I'll start in reverse order a root of administration [noise].

So you know as a as David mentioned as you probably know most of the work that we've done a using exceeding 34 cells four tissue repair have been targeting the heart.

And what are the one of the challenges of of delivering cells to the hard if that there's not a very simple route to get there you know we initially tried in the laboratory and intravenous fruit of delivery.

And we were frustrated.

To see that most of the cells ended up in the long the preclinical models that of course is not a disadvantage here. So we were able to take advantage of the fact by it but about take advantage of the fact that it's simple.

I V administration of the cells will lead them directly into the lot and he was actually pretty good imaging data that's been done in the past that shows.

With labeled cells, obviously preclinical models that an intravenous root of administrations are very efficient way to try and get the long.

In terms of the patient population of course, there's there there are ray.

Of ways that we could.

Initially evaluate bioactivity, we've decided to to start or investigation in patients as as you mentioned, who have had respiratory failure who've required men's a tory support, but who have come off the ventilator some not patients were not.

Still chronically ventilated most chronically ventilated patience I think we'll be an excellent target.

But in terms of our first attempt to collect evidence for bioactivity, we thought that.

Patients, who are still sick, but actually off the ventilator, and therefore able to do things like some pulmonary function testing and so forth.

More efficient way for us to collect information on on bioactivity in this in this first cohorts Haitian.

In terms of how long, we expect to have to wait to see evidence for bio activity.

I can't really site any data in the long, but I can tell you from all of our previous studies.

In cardiac applications and critical in the scheme yeah.

It's pretty typical for.

Two to three months to elapsed before patients start to experience symptomatic benefit.

And so that's my estimate of of the timeframe. After the single administration. When we would start to be able to register benefit the new subjects I hope that that hit all the points that you were asking.

Yeah well.

If I may I, just want to make a a clarifying state and it just so there's no confusion at all with some of the other listeners the patients that we're treating where on ventilators.

Oh now off ventilators, and so we don't expect to have to wait two or three months people on ventilators to see a result. This is all people who have been removed prevented Cory support have been considered freed up the virus, but have a long term.

Debilitating lung damage, which is being treated by ourselves I just wanted to make sure that that's clear.

Chile. Thank you Yeah, no I guess just me the last thing that it's not clear to me I.D.

I think specific measurements you like on yeah, I use for the Italian.

[noise] like lung function.

Imaging.

Yeah. So you know good question and and I would say if there's if there's a an assessment that might give us information about the effects of the cells on the long you can be sure that we'll measure it I mean very simple.

Things of course like measuring.

Ah oxygenation in patients were still in the hospital the oxygen level is probably the most sensitive indicator of how well as long as function.

And if patients are requiring supplemental oxygen.

And then something that was repairing long should result in in a decrease in their need for supplemental oxygen. So that's you know very sensitive important indicator.

But then you know other things like you mentioned a lung imaging. These patients the vast majority and patients who ended up on on dental poor support.

Infiltrates visible in the lungs, and the the very top thing about this type of condition is that those infiltrates, which may be inflammatory in nature. Initially can evolve into five roddick infiltrates and so one of the things that we would hope for with the successful therapy.

And reconstituting to micro circulation is that those inflammatory infiltrates don't mature into fibrosis, but rather returned to normal lung <unk>. So the resolution of a of infiltrates or something else something that will also look at look at lung diffusion capacity <unk>.

Testing when patients are able to perform a those tests well look at inflammatory biomarkers as an indication of of the overall inflammatory state of the patient. These patients will will many of them have still have elevation of inflammatory fire markers. So.

Pretty much anything that you can think of that would be abnormal in these patients as an indication of lung function something that will follow.

Mr. Thank you very much.

Thanks Miguel.

And your next question comes from Pete Enderlin of mass partners.

Hi, Thanks for taking my question guys.

A couple of folks on on 119.

You know you.

Somewhere that.

That.

There's some indication that deficiency of C.D. 34 cells.

It makes people more susceptible to the effects of severe effects of.

So does that suggest the potential for some kind of a preventative regimen with this kind of technology for further.

Or something similar virus.

Hey, Peanuts day. Thanks, Thanks for your question and Yeah I think.

We we will not be exploring prophylactic treatment using a cell therapy. At this time I don't know that that that would actually be inappropriate thing could do not knowing which patients are going to be getting the the disease and which of those patients who do get it going to end up with severe Yvonne.

So I think you know our initial <unk> <unk> experiments will be focused on those patients are clearly have had lung damage student that's covered 19 induced and then some sorry support and a and will follow up from there okay and.

Characterize this trial.

Fishing as a phase two.

Well, it's hard to you know the phase here is a a little bit of.

Technicality, I guess I mean, it's not going to be in healthy volunteers it'll be done in patients. So I guess, it's clearly not a phase one trial in the traditional sense, but you know it is it is a proof of concept trial, but it's going to be you know designed specifically.

<unk> to to to look at a small number of patients initially probably without a control, but we'll see and and and so that may make it a two way trial or in some cases, if we have a variety of doses of cells that are given to each of the different patients by virtue of the the the number.

Themselves that they actually produce you may end up DKI being considered you know a small dogs ranging study. So I think you know you can view it as a proof of concept trial in patients.

Dave is essential for.

Funding for that trial.

I think there's a fair amount of potential I mean, you know since the pandemic has become widespread and taken over our daily lives.

The the U.S. government international governments, and the number of scientific and professional organizations have either diverted existing funds or a designated new funds to be available to support research in these areas through grants and and a number of other.

Types of activities, whether it be participation from sites for free et cetera. So we're we're exploring all of those things as you can imagine the list the company's looking to capitalize on the availability of that Nondilutive funding is quite long.

And I think you know initially a lot of the attention has gone to folks working on vaccines as you might expect and and always trying to treat the people with the cute effects acute effects to keep them alive, but as time goes on I think there'll be a broadening.

Of opportunities and I hope that we'll be able to take advantage of that dug into r. and d. team have a really stellar record of being able to gain awards of Nondilutive funding from a wide variety of that sources and we hope that we'll be able to do the same thing here.

Some financial questions.

Joke, and you say who participated in the register direct.

So we we had that Linkin park participate there there with our equity line of credit so that they were a just and <unk> and.

They made out the the investors.

And are there restrictions on when they can sell the stock.

No. This is a registered to right. So they have they they can sell the stock.

When when issued the warrants that were issued in this transaction or on registered so so <unk> registered or those to be exercise.

You can say about specific timing of this I mean, you just had.

Raised a nice slug of other money through to New Jersey sale and you know the stock popped up a little bit and then.

Took advantage of that but.

Fairly depressed.

Price when you consider the value of awards is probably.

The effect of financing in about $2 a share.

Well, we we were pleased with the at the market terms that we were able to get we think are relative to what's in the market and and the map of cash we can bring in at this time. It was a very good deal for us and one we want to just to take advantage of of right now so.

We eat you feel it positions us quite well it brings in additional shareholders into the stock and and as we look to expand our.

Pipeline it will help us fond and continue moving forward and expand the pipeline.

Okay.

Let me add to that as well as on just let me just add a little bit to that as well because I think it's that important point you know after we announced the <unk> you know our our.

Major banking collaborator H.C. Wainwright actually contacted us.

This deal and they suggested you that you know that an intra day deal with what's possible with with these folks there were actually several deals presented some of which had you know less attractive terms, but there was interest in a in accumulating <unk> stuck based upon the announcements that were.

Made and given the uncertainty in the financial markets I think we we had no choice, but to but to execute on that deal and in fact, we're very pleased that we did many companies are are having very difficult times, finding existing capitol right now.

And so you know to do an ideal essentially at the market with a 50 per cent weren't coverage, which is well below market terms for micro kept companies right now or you know often doing things with severe discount and you know sometimes 100 in in some recent deals 200 per cent more coverage. This was.

A good deal and to pick up an additional $5 million and working capital made a lot of sense for the company to extend our runway and to give us the opportunity to continue to generate data, which will be value, creating for the company. Okay.

Can you say about what proportion of the New Jersey.

That you had actually involved in that.

<unk>.

I.

No no there's none of them <unk> transactions, so I know, but so that's it for 10 point.

9 million or whatever was.

That's all N.J. anywhere else.

Right, but but it wasn't all.

You have there's a lifetime limit of $50 million right. So we have.

Yeah, Joe Pete what what what what I would say is it was in all of our animals. We we have as I mentioned, a lifetime cap participation of 15 million. We've we've gotten more than two thirds of the way. They're we're we're hopeful that we can continue to participate.

Two years, we do have additional.

Anna Wells available and and certainly 2019 yellow regenerate there would also be eligible for sale so with within the next one or two years.

We we have enough and well that could reach that cat, but again that subject to our continued eligibility in the program and the the way New Jersey. The the <unk>. It's it's a of course in based on how many companies apply so.

We do you feel.

Pretty confident that won't be able to can continue to participate in future years and and reached that cat.

In the.

<unk>.

<unk>.

Want to start in the fall for.

16.

Sets of the size of the cost of that thing.

Yeah, I'll I'll give some general parameters I mean, we we will be announcing the the exact details up. This study once we're ready to get started and that will be published on clinical trials Dot Gov, but you know we're looking at at trial that we'll probably encompass somewhere around 100 patients overall it'll be you know.

Randomized and double blinded controlled trial and you know the total cost is going to be you know somewhere in the range you know $12 million to $18 million. So you know the range I'm, giving you was purposely broad because we're still in negotiations with our.

See our rose and also because you know they're a number of potential collaboration that could help offset some of the cost but that could <unk> at least in order of magnitude. Yeah. That's very helpful and thanks for taking my questions and congratulations on everything.

Especially without spending more money.

Great job.

<unk> <unk>.

And as a reminder, task a question please press star.

Oh by the number one on your Touchtone phone again that star one.

Yeah.

[noise] and your next question comes from Jason Colbert.

Thank you in good afternoon. My name is Benjamin and I'm asking questions on behalf of <unk> I have two questions. One on the signs side and one on the financial side. My first question is for Doctor <unk>.

Please help me understand why the C.D. 34 positive cell is going to be successful in the cytokine immunological <unk>.

And put this into perspective, but the other three companies.

Sure of things for that thanks that question.

I I I I can't speak to what the other companies are doing but I can tell you.

In great detail about the rationale for this do you use for the city 34 so.

As you probably know the C. 34, so is a naturally occurring vascular repair presented herself. So it's in our bodies to repair the store a and maintain the micro circulation throughout the body, which explains why we are targeting different diseases in different tissue.

It was.

The approach to Ah patients with [noise] covert lung damage a is really an outgrowth of that well established repair capability one of the aspects of the C. 30 fours biology is that it is also an anti inflammatory salad and attenuates [noise] hyperimmune situations that's been.

<unk> in preclinical models as well so we have a combination of the so that is both.

Capable of attenuating hyper immunity.

And then plane tissues and also capable with a very well documented track record. He came in studies of improving Microcircuit Tory function and replenish replenishing damaged micro circulation.

You may know from embryology that when organs are formed initially the Bachelor true is off in the first thing that is created a and the <unk> of the tissue the function part of the tissue forms around the nation. They ask.

Sure.

There is data from preclinical models that that same process that is a the formation of avascular church can stimulate and maintain that were generation of damage tissue.

Right.

It's been shown it's been shown specifically them alone. So there are several lines of evidence.

That would support the rationale of using it to 34 cells to repair the damage after a superior about <unk>.

Thank you.

My second question is <unk> I understand that you guys have cash and $10 million on tax credit.

Help me understand your decision to raise $5 million in capital by selling warrants and stocks are fast money institutions, what message does not send people.

Like so before Joe answered that question I want to jump in here and say something the characterization of the new investors as fast money institutions is your characterization not hours.

So I don't know, if that's inappropriate or appropriate use where appropriate agitating for our new shareholders, but that's your opinion not hours and secondly, I think I've already addressed very specifically why we think it was actually a very smart thing to collect new capital when it was offered in in a.

Where capital is very sparse and where most of the pundits are predicting that the capital markets are going to become more restricted and it's going to become more difficult not easier to find capitol. So.

That's my statement to that but I appreciate if we could avoid the perjured of comments about some of our new shareholders and then Joe If you could go ahead.

And if you'd like to as well.

A day and I think he covered it <unk> you address it earlier, we think the the additional 5 million dollar that we bought and we're we're in brought in favorable terms and abroad and additional shareholders. Two two collider is so all we think it was a a wise move.

To tax that transaction.

Yeah.

Thank you very much.

Thanks, a lot.

And this can clear to the question and answer portion of the presentation and now I will turn the call back to dock imagine for closing remarks.

Yeah.

Again, thank you all for participating on today's cool, we look forward to speaking with you again during our next quarterly conference call at the continuing to bring you news of our achievements in progress remain grateful for your continued interest in in support of <unk> and please stay well and have a good evening. Thank you.

Ladies and gentlemen, this concludes today's conference call. Thank you for participating you may now disconnect.

<unk>.

Mm.

[laughter].

[laughter].

[laughter].

[music].

[music].

[music].

[music].