Q1 2021 Orgenesis Inc Earnings Call
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Good day, ladies and gentlemen, and welcome to the <unk> Genesis first quarter 2021 that business update conference call. At this time, all participants have been placed on listen only mode and the floor will be opened for questions and comments after the presentation.
And it's now my pleasure to turn the floor over to your host David Waldman of Investor Relations, Sir the floor is yours.
Thank you good morning, everyone and welcome to the <unk> first quarter 2021 business update conference call on the call with US. This morning are very capital and Chief Executive Officer, and you'll write Inc. Our Chief Financial Officer, and do you have any questions. After the call or would like any additional information about the company. Please contact crescendo communications at two one.
And 267 and 11020. This conference call contains forward looking statements, which are made pursuant to the safe Harbor provisions of section 27, and eight of the Securities Act of 1933 as amended and section 21 E of the Securities and Exchange Act of $19 30 for as amended and these forward looking statements involve substantial uncertainties and risks and are based.
And on current expectations estimates and projections and reflect our beliefs and assumptions based upon information available to us as of the date on this conference call. We caution listeners that forward looking statements are predictions based on our current expectations about future events. These forward looking statements are not guarantees of future performance and are subject to risks uncertainties and assumptions that are difficult.
To predict our actual our actual results performance or achievements could differ materially from those expressed or implied by the forward looking statements. As a result of a number of factors, including but not limited to the risks and uncertainties discussed under the heading risk factors and item one a of our annual report on form 10-K for the fiscal year ended December 31, 2020, and our other filings with the securities and <unk>.
Change Commission, we undertake no obligation to revise or update any forward looking statement for any reason I'd now like turn the call over to Mr. Barry Kaplan. Please go ahead Barry.
Thank you, David and thanks to everyone for joining us on our call today.
And I'm pleased to report, we achieved 400 zone 400, and sustained growth and revenue for the first quarter of 2021, which reflects the early success with our focused strategy and I'll talk more about this and moment and.
At the same time, we achieved positive operating income and maintained a solid balance sheet with $41 $8 million of cash as of March 30, <unk> 2021.
Let me take a minute to recap on the Apple kill strategy as discussed last quarter. Following the sale of mass and so we've been hard at work implementing our pool kills platform, which we believe is the key to unlocking the full potential for the cell and gene for the industry.
Killing T cells on manufactured using centralized production, which is standard across the industry. However, and this strategy has resulted in high costs for cell and gene therapies, such as car T therapies, which can range and the hundreds of thousands of dollars for patients.
Algo listed them the magically low of these costs through on site closer single, South Beach, which will support pay uptake and make these therapies more broadly available for patients. We believe this is a crucial step that is necessary for cell therapies to become widely available towards us and our businesses.
Bills per ounce sleek, Keith pillows sales.
With these technologies and networks.
And this pillows aligns interest off the therapy developers and the hospitals and patients and the wages and has not been done before.
Method of operation and it's based on out licensing of therapies from leading research centers and hospitals and that.
GAAP thing the lab, they supposed to assist to customized automation solutions and integrating the combined pulses and all on pools, which is short for Genesis mobile production units and labs.
We have developed to support based on a decade of experience and postal development for such little piece and working closely with researchers from leading academic institutes as well from biotech companies active in this space.
To accelerate achieving algo wheel setting up joint venture partnerships in order to rapidly deploy a point of care systems and capabilities and around the world and.
The U S. We are working directly with the hospitals each one of these partners link strong technical and regulatory and local market expertise and.
Additionally, each of these partners have tremendous skin and the game and they are investing heavily and those side and so so no regulatory and clinical expenses as well as infrastructure and the respective territory.
Our reported revenues reflects just the first phase of our relationships with these local joint venture partner base.
Based on long term contracts, we put in place to support the local clinical and regulatory goals.
One might think of it as similar to a franchise model in order to gain access to a particular territory.
Portland commenced investing really quiet efforts to receive marketing authorization and partners with us for the setup from the point of care operations.
We provide them with a road map for therapies on the support Tech plans for regulatory and clinical services training and access to all on pools.
If the above a prerequisite for enabling supply of therapies at the point of care.
They will continue to require this initial support and for those of you may find local providers. The system was also above the benefit for most even these services from us since we have developed so much internal expertise specifically in the cell and gene therapy field.
The second phase of our revenues comes as a therapeutic pipeline advances and the hospitals working with our local partners like while production of sales piece.
As the products are sold for the hospitals and all partnerships for profitable we will be getting a royalty both on the sale of for the products and on processing systems.
Once the initial validation stages finalized we expect our partners to expand the other activities two additional sites and hospitals.
Each of our partners has several validation sensors. So 11 use all limited to our joint activities in those sites, but we believe the incoming revenue is still sustainable for the second stages, and one which we expect the rapid acceleration of all avenues, both from services as well as royalties to audience.
We believe this is a highly scalable model and houses and investing all the capital ourselves with alcohol and local market expertise. We believe we have substantially derisk on a model by leveraging outside support for them all regional partners.
At the heart of our business model. Our goal is to provide life changing treatments for large number of patients and reduce cost within the point of care Center.
Initially we are focusing on autologous cell based immunotherapies for a few ticks as well as therapies for metabolic disease antiviral disease and tissue regeneration. We have built a whole box low pubic pipeline, which includes more than 30 cell and gene therapies, and we continue to evaluate new therapies and.
And like a traditional biotech with a handful of therapies and the pipeline we have access to many therapies and technologies on different stages of development.
And so growing partnerships with Lee searches and commercial entities and hospital as an example in March we entered into a second phase of collaboration with hospitality and from deal and you know Jesus and my belief with exclusive license to commercialize and self as solid tumor therapy. The benefits, we bring to therapy development soil.
Poker network is highly valued by hospitals and biotech companies. We are a strategic partner that can enable the clinical development and support processing needs. While at the same time, providing access to on time Polk Hill distribution network. We are also investing and new point of care technologies that can be integrated into our own pools.
These systems enable us to produce a autologous cell and gene therapies, along with viral processing capabilities.
At the point of care, and a consistent and standardized manner and all location they're on.
On number of advantage to Z systems, such as and shoot setup times and they have a small footprint and the low the cost of production through automated operation and parallel processing. In addition, we designed them and a scalable and modular format. So we can add capacity as it needs are for the hospital and a local partner expand.
The other sponsor for that and just from the industry has been very encouraging, especially after the hospital will seize on pools allow medical institute institutions to overcome the historical challenge they've made it difficult that have made it difficult to provide these therapies to patients in a timely and efficient manner.
We can now do this without the logistical and Mike mills with dealing with a centralized production facility on the difficulty of building clean rooms and hospitals.
We believe the on pools unimportant step to quickly expand our capacity and we look forward to increasing both the quantity and locations of our system in the meantime, we continue to grow poker and network, which now includes partnerships in various countries across North America Europe.
Asia, and Latin America Middle Eastern Australia. As an example, we recently began began a collaboration with them and being on just for children's hospital and the loan to establish a point of scale and cell therapy Center at the hospital.
On one final note I'm pleased to report that as announced yesterday, we received an investigational device exemption on what's known as and I D approval by the U S. F D. A to conduct a first in human and so he's ability study of the tissue Genesis isolated to treat acute respiratory distress syndrome.
Resulting from COVID-19 infection.
This is just one of the great assets, we have benefited from the call. It go acquisition. In addition to systems and therapies of colleagues and team itself is a wonderful addition to our existing team, bringing in expertise and knowhow that we highly value for many of US therapies. We look forward to providing further updates on the progress of this clinical trial.
So to wrap up and our maintenance and college it as ever by the outlook for the business and proud to report we achieved our full fold and costs and revenue over the same period last year I truly believe this revenue growth combined with our has healthy margins improve cash flow and solid balance sheet, all bode extremely well.
Well for the future.
On that note I'll now turn the call over to Neil Life and go Chief Financial Officer.
Thank you for it.
Our revenues for the three months ended March 31, and 2021 word and nine 4 million compared to $1 9 million for the three months ended March 30 for 2020, reflecting an increased and point of care development service revenue due to increased activity under our master service agreements with existing and new joint venture partners.
Cost of services and other research and development expenses for the three months ended March 31, and 2021 were $6 1 million compared to $4 9 million for the three months ended March 31, 2020, representing an increase of 25%. The increase is mainly attributable to the continued expansion of our pipeline of license G. G. Geez you.
Expansion of our POC point of care cat capacity globally further investments and automated processing units and processes for the development of owned and licensed advanced therapies to enable commercial production and additional work with partners to enable the fishing close processing system technologies addressing geo care needs.
Selling general and administrative expenses for the three months ended March 30 for 2021 were $3 million compared to $3 $5 million for the three months ended March 31, 2020, representing a decrease of 16% the decrease in selling general and administrative expenses is primarily attributable to a decrease and accounting and legal fees.
As a result of decreased corporate and investment activities and 2021 compared to 2020 and terms of liquidity. We ended up the first quarter 2021, with cash and cash equivalents of approximately $41 8 million and had no long term debt.
Operator, we'll now open the call for questions. Thank you.
Certainly ladies and gentlemen, the floor is now open for questions. If you have any questions or comments. Please press star one on your phone at this time.
We asked about posing your question. Please pickup your handset or for listening on speaker phone to provide optimum sand quality. Please hold while we poll for questions.
Yes.
On the first question is coming from Bruce Jackson Bruce Your line is live please announce your affiliation and pose your question.
Hi, Bruce Jackson of the benchmark company.
Congratulations on the strong quarter at at this run rate. It could if you were to continue this you'd hit like $37 million million dollars are more for for an annual revenue number.
I know that with this business it tends to be lumpy, sometimes for lack of a better term show.
Maybe you could just give us a rough idea of how the revenue might unfold for the rest of this year.
Yeah.
So Bruce Thanks for the question and so you know I I I always say this to shareholders and people. This is a business that should not be judged quarter by quarter.
Cell processing cell development cell and gene therapies.
And Oh, I would say more for long run process.
But you know just looking at the work we have ahead. The first for the next year I would say, it's going to be pretty persistent and tuned with the support we need to give to our cell and gene therapies I can't of course give a forecast on the numbers because we have not made any such forecast public, but I will say that I think for the next year and he.
Even more.
We have I'll work kind of.
Cut out for us and we know what we need to do to support our partners and these are long term contracts usually for a year or two sometimes even more so oh, we're expecting them to continue activities and perhaps a managed to grow with them, but as again I.
And before we are focusing on all validation centers and Lee do you want to make sure. Our model is validated before expanding to the full capacity. We think we can hope to do so and the future.
I hope that kind of summarizes and and so.
Oh, Yeah, it's I understand it some difficult to forecast so just trying to get a just a rough idea of.
Of what's going on and speaking of the validation centers.
Maybe you could tell us how many on pools or are out there right now and and whether or not you have a target for how many on pools might be out there.
Say by the end of the year.
Yeah.
Yeah.
So we do have our internal targets, but again this is not public information on our aim is to have the allowance 30 validation centers, how many on pools will be and each center is difficult to say at the moment. Some centers can begin work by the way was out there on pools, because they've got a smaller systems.
For vows incorporated and the clean news, but others are waiting in line for those that have not received them. So we're trying to be as efficient as possible and make sure. We split out as quickly as possible I think we will be able to answer all the supply needs. We have this year.
And as we kind of expand and get into more clinical work, we may need additional on pools with each site.
But for now I think we have a target set and I think we can provide the capacity needed.
Okay.
For taking my questions and I'll hop back in queue.
Thank you.
Thank you and the next question is coming from a Calvin Sito calls on your line is live please announce your affiliation and pose your question.
Either it thanks for the great results. So in Argentina does well I know, it's a win for our partners and more importantly, the patients that you are serving so I'm thrilled to be on this journey as a shareholder so could you talk a little bit more about the overall progress for the CD 19, and autologous insulin producing cells in terms of the clinical trials.
Are they progressing smoothly according to figure on the timeline.
Thanks for the question and thanks for the support so I think we all progressing according to timelines and.
And for the I'll begin with our colleagues and kind of insulin producing cells because what.
What we did as a strategy also strategies to expand our collegial product kind of solved because we believe that.
A very good base for our program once we have that expanded we can.
And in additional cells for that because if you may remember, we have orphan indication for patients that have undergone a complete pancreatectomy for this product as a for the stage. This is already being sold and the U S. And we are trying to expand the capacity of supplying this product through on penalizing the.
Product and in parallel working on adding in additional cell types, such as L. A P I cells and other cell types to make this a more robust product for those patients who unfortunately don't have enough island.
So that's I think going according to plan and so on all programs in Europe we.
We have had and some difficulties and collecting all the biopsies are from the liver cells because of COVID-19, but I think we'll know amping it up and coming back to on initial program, So that's going well as well.
On the CD 19 product I think we have some we have not and I announced which the icons say, but I will say that I think we have at least one major research center and each continent and.
<unk> and Lewis.
And will they hope very much hoping diseases start getting into the clinical phase.
And we're very excited about.
Seeing if we can makes me cells at the at a substantial decrease in cost.
As a validation of our platform of our strategy.
Alright. Thank you for it I just have one more question Israel, given that and <unk> is one of our commercialized products could you share price any developments on automating callisto and are.
Expanding to more centers and also like to find out where it will be.
B available to more hospitals across America.
Okay.
So thanks, So we're still working on the automation and on utilization of this product.
And we actually have a center was already kind of chosen to be a validation center, whether we will have to do of course, some compatibility testing in order to approve this for us and the U S and in parallel we're working on expanding and trying to get an approval for these products and other regions such as Europe.
Asia, which will take a bit longer because again. This is a cell therapy utilizing island and we have to go through a process, but of course, we have accumulated a lot of data from the U S. So I'm, hoping that if we finish this process by this year by the end of this year, we will be able.
To expand and I'm talking about the automation posts, if not the legislation and other countries. So I'm, hoping if we finish the automation by the end of this year, we will have the ability to expand that capacity.
Alright sounds really exciting and just kind of one question because I was visiting your website today and I know these day, we Hyatt. This Lady this very expeditiously and he called Alisha and think she is performing day rule of a general Konzo and compliance officer. So could you share the Orissa mobile home for goods and Occupancies and also.
Shed some light on the surrounding that does that prompt you to hire a general concern is it because of Oh, There's one day cause issues now, especially on the areas of royalties and working with hospitals too.
And well actually Oh shows Oh wonderful Lady and we're very happy to have on the team. We did this more for making sure. We're compliant with all obligations until we can have a very close kind of Oh, I would say control over all other activities was all on par.
And also to make sure in terms of different legislation issues that we are falling all the regulations, we showed in each country and each location and I'll show is doing a great job and kind of compiling all of this into our systematic approach, which will allow us to control activities with each partner and each region.
Alright. Thank you I, just wanted to and Oh by saying that your team has always doing a great job, creating affordable health care is it's a bunch of everyone's so once again, thank you Barry.
Thank you thanks very much for the questions.
Thank you.
And gentlemen, don't forget if you wish to enter the queue to ask a question. Please press star one on your phone and anytime and the next question is coming from Megan Hum Megan. Your line is live please announce your affiliation and pose your question.
Either at the stock and I would like to congratulate you for such amazing quarter without and as you'll share who and I feel really happy to see how on Genesis is going to impact line all of the double and and really get to be able to speak with you today.
So.
I would like to ask how do you go about choosing which hospitals to tcl and improve.
And improve it and how you expect the timeline and validation of your on tools to be in the coming year.
Yeah.
So thank you for a small for you was much appreciated and as for your question. So.
So that's part of for visa and we have regional partners. Because they are you know really they really understand Legion will the working and so they know which hospitals all the leading centers I would say kind of for the voices of facility and this space that one's Oh systems, Oh Oh.
I would say validated and and this hostile it really does serve as a kind of a sign of excellence. So you can see just by activity also in the U S with day to you and UC Davis will either trying to choose the best hospitals that are also research centers.
And then we can work with the existing researches that have in many cases dance that did not allow them to cover actually the expense.
And of making these products and by working with and external C. D. M O. So by going though we actually so other thing more than one problem life will also supplying and also these but also helping them with this other piece, which is very important in order to push the sector forward.
So we've really tied to choose and each region I would say the leading kind of hospitals in the cell and gene therapy space doesn't want to expand and understand and these therapies and also have the clinical teams that can implement these therapies in the clinical settings that is not always trivial.
As we go about the validation Ashley on able to show that these units on mobile units as well as IL therapies all available at Lee do you Spice and actually go through different clinical stages, all through hospital exemption and no matter what the regulatory framework.
Once we have those and AR and AR and a more validated fashion and validation doesn't mean the therapy needs to be approved it means that we are continuously and manufacturing processing supplying these therapies through all automated units.
That stage then we can start expanding now Knoxville every hospital do we need to have clinical trials not for every hospital and do we need to learn through for regulatory purposes. Our goal is to do this this is a validation centers and then just expand supply capabilities to other hospitals, so it'll be I hope.
And put much simple of both us and entering and expanding and as stated and I'll documents and and now filing we really want to focus on validation for the next year or two we want to make sure. We we we kind of optimize on model. We all also and learning stage as we kind of saw.
Set up this model and I think once we do that it'll be much easier to just expand in the existing centers as well as open up new centers for us directly and for all regional partners.
Right. Thank you, that's a really thoughtful business strategy and it makes a lot and I and other question. So for this quarter, we got caught it on site.
Profit on a group level. So do we expect similar profitability going for what is the scope for any improvements in your margins.
So doing this validation process. Our model is really based on a cost plus model on the my goal here is not to squeeze on distributors our partners as much as possible. Our goal is to actually support them and low Oh regulatory filings and low.
Achievements.
So for any work we are doing to support them and we will continue using a cost plus model and for work that is coming in from external sources that work with our partners work done for the Hustles. We I think we can slowly build up Ohio margins, but again I'll focus as little Genesis.
It is not just to make as much money as we can on each therapy, it's to make as many therapies as possible, so well and really focusing on expansion not on because even in the existing hospitals, perhaps we can charge much more but I'll go is to keep a sustainable model so to them.
Low for quick and healthy expansion.
We would rather make less money on many more patients than a lot of money on each patient. So I hope to sustain our model, we will continue and on validation model and hopefully on margins will approve improve but our goal at this point is ladies of validation and the fact that.
Even in this validation model, we can build a sustainable model is what lets us lately.
I would say optimize our system our platforms and our relationship for the hospitals as we advance toward a.
Market approvals for these products.
And maybe and also just to on on top of that for SG&A, just as far as that line item goes we don't expect material changes and that either and just like Barry said, we actually expect that to be sustainable as well so except for any other corporate transactions that caused that to fluctuate from last year and legal and accounting we expect.
The same on SG&A okay.
Alright. Thank you both for the answer on.
And also building on what Kelvin Oh, Yeah, a platform called Lasalle.
And what other what other therapies and and Yeah. Let me to answer lies in the pipeline over the next two years.
So we're working on the MSC product, which our orthopedic and indications.
Indications.
We're working on kidney disease, we're working on of course, a different a wound healing dermatology products. We're working on our antiviral therapies. So we're really kind of [laughter] on P. Lives everything we can get on a hands on some will take longer and some will be quicker it really depends on.
The how complex the therapy is but we are focusing as this is a big focus for us and incorporating automation and incorporating different technologies and tools all appeals.
I think for the moment on clinical side, we're very kind of focused on of course, the pancreatic a project on the immuno oncology and dermatology and orthopedics. This is kind of our main focus at the moment, but in parallel we're working on many other things that.
And it should be and cool place now not every time do we need to begin all of the work again many of these therapies build on expertise built and on existing therapy. So as we advance the more and more therapies actually the amount of work we need to invest and on pure lies and goes down so it's not as though we have to begin from scratch.
Every time.
Thanks, a lot going on I, just want to see that.
And you're already doing on noble cause here and you really have my full support thank you for lunch.
Thank you for these kind of once the.
And then I much appreciate it.
Thank you and the next question is a follow up from Bruce Jackson and Bruce Your line is life.
Hi, Thank you for taking the follow up question.
So yesterday, you put out a press release about the B I D E for the the Isolator too and I just wanted to clarify.
It's just like a new version of the Isolator that you're working with and what are the improvements that you've made to it.
So yes, it is and the all improvements and usability and efficiency and safety and all aspects of it and it's just about products. It's a closed system for making our scf and this is the first time, it's been approved for intravenous use so.
And for COVID-19 patients. So I think that's a big step just taking into accounts that you know the to go through this I E. The team and had to face a lot of scrutiny from the regulatory authorities.
So I'm very proud of the work on this and I think this opens up also a window for additional therapies that can be deployed by the system.
And also have some other clinical trials ongoing and and population for the for the sales provided by the system.
So I think it's a it's a great milestone for us.
Okay, Great and then.
Last question is on the metabolically optimized T cell program and yes.
Date on that.
Yeah.
So in parallel to our CD 19, and we are working very hard on this and.
And setting up the sites and that can treat patients for this it can be involved and a clinical trial to validate the system.
The we're still working with agencies with regulatory agencies, which indications would be optimal and where we want to start on works as well, though we are hoping we will be approved at least from the clinical stage for multiple indications.
So yes, we're working on that and I think and hopefully it will follow quickly after the call T Potter.
Okay, Great. That's it for me thank you very much.
Thank you. Thank you.
And we also other follow up coming from Calvin and Sito Cowboy and Calvin and your line is live.
Alright. He now this COVID-19 here, so I'm just looking at our cost of services and other research and development expenses for this quarter compared with the previous year on the same quite a quite a one I'm sorry, I didn't notice that our professional fees consulting fees and we should have gone up from foreign cage for about $2 million.
Whereas our other research empty BOMA expenses from now from two 8 million to about 800 key.
So could you speak about and nature of our expenses are booked to be a reoccurring for some of the it could be on like a one off especially for the.
Other research and development expenses, because it kind of dropped by clients and it. Thank you.
Yeah.
Well there is a combination of costs associated with all of those expenses right could be there's personnel. There's labor. So some and some quarters that will go up some quarters that will go down and you have development and clinical you have license line.
Royalties theirs.
And there's.
Various regulatory fees, there's consumables and there so yes.
And from from quarter to quarter those may vary depending on the depending on the types of development services and tech transfer we do to support our partners. Okay. So the correlation between those and won't necessarily be linear it will vary because the need that they have for our support theories. Okay. So whether you can do the difference here for for this year is that obviously were.
And as we're generating more and more revenue or are the need for what we do to support those services increases and so on and the variability will increase as well okay.
Alright, Thanks, just one more to squeeze in.
In terms of the revenue day, we're earning and from our partners for providing the tech transfer.
In terms of credit day, so do we extend credit.
To them and.
If so could you share with us or is it 30 days 45 days or 60 days. Thank you.
Yes, we do extend credit and most of the and most of the situations, we extend credit and its 150 days.
Okay is there any reason why it's so long because it does on cash flow, maybe cash flow could be negative for quite some time, because we have not.
David and Mike 60 days and so then we have to draw on our current cash.
Other two oh on our operations. Thank you.
That is true and just like any.
Oh go ahead no go ahead go ahead and they'll go ahead.
Yes that is true just like any customer that we have to monitor that carefully whether it would be a 30 day or 60 or 90 day customer. This has been traditionally our approach even since last year in terms of when we are generating revenue and which has proven out to be bought and so far and our trends has been those receivables being collectible. So R. R.
And our sales we had last year and 150 days and in the period were collected we collected receivables and this period that were from the previous periods on that 150 days. So we so far see the same trend going into second quarter and third quarter on those receivables alright, but thats the way the MSA and where the relationships are structured especially to develop is there.
Partners and that sort of pioneering effort they have okay.
That may change and the future and we expect that potentially to change but at this point, we don't see any.
There is certainly is cash flow risk on that with any company with any length of time, the extent that the receivables that we haven't seen that thus far okay. Sorry, Barry do you want to continue on that yeah, and also I wanted to add on.
Many families general partner and they get it.
Oh, they generally and the support from grants from the clinicians from the hospitals and they have they need the time to generate the revenue so and the older and this is a new model and new business and.
And we do not want to put too much pressure on them. So we want and give them a chance to actually and pass it from the work with supplying to them and in many cases and facilities you know they'll take 90 days or even more of 120 just to see the expenses and then payback cash and stuff like that so we want to be sensitive to.
That.
Alright, Thank you now and Barrett. Thanks, so much for spending to ethics to explain and thanks for the answer.
Welcome.
Thank you and the next question is coming from Anthony Marchese, Anthony Your line of lives.
Hey, Barry Congratulations fantastic quarter, and you deserve it and you've put a lot of time and effort into this and.
I will say and the time that I've known you.
Everything you've said, it's always come true pretty much on time and and exactly what you say so congratulations.
Two questions one can you discuss.
Your.
Activities for your backlog, if you will with on tools and the United States.
I don't know if you have to discuss that.
Well I don't think we'll discuss that but I'm happy to discuss it now.
Sure certainly the hospital, we all working with all waiting for the on pills again, we have to kind of bring them overseas [laughter]. So they have to sample and and I think so very excited about the prospect of incorporating them and of course, we're working on the utilization of the kind of sell.
Project, which will go into additional centers. So that's kind of the focus of activity. It's not that we intend to spud 100 of these over the U S and the next few months, we need and want to focus on the centers, we're working with.
Oh, we I don't think we've announced all of the centers just the two major ones, but again I'll goal is to have validation centers and to make sure. These on pills, Oh, well located and I personally think it's better to expand more on pills and one site before expanding to additional sites. It's just.
And you know in terms of overhead and achieving our goals I think that's better so that will be our focus.
Got it Okay and you are correct me, if I'm wrong, but I believe for the last call. You guys said that you do have a share buyback in place on.
And if you do have you made any purchases or plan to make any purchases under the plan.
We do have a share buyback in place and we are continuing to make purchases because the for the threshold floor on that is roughly.
And $4.50 Youll see in the each filing youll see a disclosure that relates to.
How much we purchased each quarter, so far there and then.
And the.
And this first quarter. There was there was a one purchased we've had a couple of purchases and whenever you see that level level that'll take place and whenever you see the stock activity and that area, most likely that plant kicks into place. Okay. So you can track that from last year's level and that of course, each quarterly as it occurs okay.
Great and just final question are you seeing any more I mean, given these results I would hope that.
You would have more potential analyst. Following are you seeing any further interest in terms of and I realize you don't need cash and so that's always an issue, but do you.
Are you seeing any more interest from our analysts at this point.
Okay.
Oh gosh.
Yeah go ahead go ahead.
Its percolating, yes, we are seeing that.
Have discussions with.
Different institutions that are looking and asking more questions, which I think is probably an inflection point for us in terms of the exposure level, we can get with those institutions and understanding our business, yes can I say and as far as analyst coverage no. I mean, there's I don't think there's anything on <unk>.
That has occurred that we can say that we can point to because we have and <unk>.
Certain analysts that are covering the stock, but as far as a larger base of investors and and institutional investment, we're starting to see that for Kuwait.
And I D.
Like I said meaningful level, yet, but hopefully that is a trend that will continue okay. You might agree that that is going to be and important.
And next step to have us resonate within the investment community Okay.
No I think given that your cash flow positive I think that's a tremendous inflection point and I think that Oh.
The fact that you're not burning any more cash I think you absolutely should be a catalyst for people to get involved and then it guys congratulations and keep up the great work.
Thank you.
Thank you.
Thank you and say where no other questions from the lines at this time I'd now like to hand, the call back to the or Genesis management team for any closing remarks.
Yeah.
So I'd like to thank Kathy once those participating and our first quarter of 2021 business update conference call.
And excited about the outlook for the business and appreciate the stock for Porto file share holders, we look forward to providing fun sales updates and our progress and the weeks and months ahead. Thank you. Thank you everyone.
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.