Q2 2021 Trinity Biotech PLC Earnings Call
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Yeah.
Yeah.
Good morning, everyone and welcome to the Trinity Biotech Q2, 2021 financial results conference call.
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After todays presentation, there will be an opportunity to ask questions.
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Please also note today's event is being recorded.
At this time I'd like to turn the conference call over to Joe Diaz with with them partners. Sir. Please go ahead.
Thank you Jamie and thanks to all of you for joining us today to review the financial results of Trinity biotech for the second quarter of 2021, which ended on June 32021.
Joining us on today's call is running a fleet chairman and Chief Executive Officer, and the biotech and John Gallard, Chief Financial Officer ASP.
At the conclusion of today's prepared remarks, we will open the call for a question and answer session.
Before we begin I must inform you that statements made in this conference call maybe deemed forward looking statements within the meaning of the federal Securities laws.
The statements are subject to known and unknown risks and uncertainties that may cause actual results to differ from those expressed or implied in such statements.
The risks include but are not limited to those set forth in the risk factors section of our annual report on form 20-F filed with the Securities and Exchange Commission.
We undertake no obligation to publicly update or revise these forward looking statements to reflect events or circumstances after today or the occurrences of unanticipated events.
With that said I will now turn the call over to John Gallard CFO Trinity biotech.
We review the results of the quarter and he'll be followed by chairman and CEO Ron on a query for an update on sales marketing and revenue John. Please proceed.
Thank you Joe and good morning, everyone. Thank you for joining.
As Joe mentioned I will now take you through the results for Q2 2021.
You have noticed from our press release and a noncash impairment charge had been recognized this quarter and as disclosed in the press release.
I will give further details on that charge later in the call the.
The income statement metrics I will exclude the impact of that impairment charge.
Starting with revenues total revenues for the quarter were $33.0 million.
Compared with $16 million in Q2 2020.
As Joel pointed out and as our typical approach rune will discuss revenues in further detail later on the call.
As such I will move on to discuss other aspects of the interest income statements.
Gross margin for the quarter was 42, 7%, which is broadly similar to the $42 nine achieved in Q2 2020.
The small decline in overall margin is driven by a lower comparative margin from V. T M products, partially offset by higher margins from our core products in Q2, 2021, when compared to Q2 2020.
As ever our gross margin remains susceptible to product mix changes geographic spread currency fluctuations and product level of variation.
Other operating income increased from $2000 in Q2, 2020 to $11.0 million in Q2 2021.
This income relates to loan funding received in 2020 under the U S government's paycheck protection program.
For Paycheck protection program loans received by the company in 2020 totaling $11.0 million others were forgiven during the during quarter two 2021 and have therefore been recognized as income this quarter.
These four loans were treated as short term liabilities at March 31.2021.
Moving on to R&D expenditure is decreased slightly to $2.0 million compared to $3.0 million in Q2 2020.
Meanwhile, SG&A costs have increased from $5 million in Q2, 2020 to $9.0 million in Q2 2021.
It is important to note that SG&A expenses were unusually low in Q2 2020 due to the Furloughing of employees as a result of the pandemic government payroll support related to COVID-19, which are not available in 2020, sorry.
Sorry in 2021 and other cost savings.
In addition, Q2 2021 SG&A costs reflect increased professional fees plus additional sales and marketing team costs, reflecting the expansion of our international sales and marketing team.
These resulted in an operating profit for Q2, 2021, a $9.0 million compared to $500000 reported in Q2 2020, an increase of $13.0 million.
This increase in operating profit is primarily driven by increased revenues and the forgiveness of the paycheck protection program loans, partially offset by higher SG&A expenses and a slightly lower margin.
Moving onto financial expenses has increased the quarterly cash interest costs are in our exchangeable notes of $1 million $200000 relates to notional finance charges associated with lease facilities here.
He's notional finance.
<unk> are required by the relevant accounting standards.
16.
You will note that there is also a noncash financial net income of $900000, which is made up of accretion interest of $100000 in the accounting carrying value of the exchange of a note less than 1 million fair value adjustment to the derivatives embedded in the exchangeable notes as required by the relevant accounting standards.
Profit after tax before impairments, one off items and non cash finance expenses was $8.0 million compared to a loss of 800.
<unk> thousand dollars in Q2 2020.
I was in Pryor.
And I said I was in the press release, we quote earnings per ADR effectively our equivalent of EPS on a standard basis and also before the impact of impairments, one off charges and noncash financial items.
Using that modified measure earnings per ADR have increased to 21.2 cent from a loss of three 6% in Q2 2020.
Our diluted earnings per ADR have also increased in this case the 'twenty three cent from one <unk> in Q2 2020.
Okay.
Now I'll provide you with more information of the aforementioned impairment charge of $7.0 million.
This charge results from the accounting standard driven impairment review, we are required to carry out under Ifr S.
There are number of factors taken into account in calculating the impairment due to the Companys period end share price calculation of the companys cost of capital and future projected cash flows from India eventual cash generating units in the business.
In addition.
Examines individual project cost for indicators of impairment.
The noncash impairment charge of $7.0 million has been recognized against the following assets.
Tangible assets $12.0 million.
Property plant and equipment of $10.0 million in current assets of 300000.
I will now move on to talk about the significant balance sheet movements since the end of March 2021.
There was a decrease in property plant and equipment of $3.0 million.
Additions in this quarter were $400000 and this was offset by depreciation of $600000 and the aforementioned impairment charge of $10.0 million.
In the same period, our intangible assets decreased by $5.0 million.
This was made up of additions of $9.0 million offset by an amortization charge of 200000, and an impairment charge of $12.0 million.
Moving on to inventories you would have seen we have decreased.
These have decreased by $11.0 million and now stands at $41.0 million.
In Q1, 2021, we reduced the level of production of our PC or viral transport media V T M.
With projected demand and this is the main reason for the reduction of inventory this quarter.
Meanwhile, trade and on the receivables have increased by <unk> 5 million to $19.0 million, reflecting slightly lower cash collections.
Our trade and other payables reduced by $9 six compared to March 2021.
This reduction was mainly driven by the aforementioned forgiveness of the PPP loans.
And a reduction in trade creditors that accrues at the company paid vtsiom suppliers for previously supplied raw materials.
By reducing the level of purchases of raw materials to reflect the reduced demand for new V. T M orders as the quarter continued.
You will see from the balance sheet that we've presented the exchangeable notes liability and the related embedded derivatives within current liabilities.
Previously it had been recorded within non current liabilities.
The reason for the change this quarter is because the notes have a put option on one April 2022.
As the company does not have an unconditional right to the first settlement the viability or at least 12 months. After the reporting period, the accounting standards require us to show the exchange notes as a current liability as at June 2021.
Finally, I will discuss our cash flows for the quarter cash.
Cash generation from operations during the quarter was $4.0 million.
Non operating cash outflows during the quarter include the capital expenditure of $4.0 million of payments for property leases of 0.7 million.
In addition, the company paid 2 million of interest in exchange of a notes overall.
Overall this resulted in a cash balance of $34.0 million at the end of Q2 2021.
Thank you.
I'll now hand over to Ronen, who would bring you to a revenue.
Thanks, Sean.
I'm now going to review the revenues for quarter two.
For the corresponding quarters in 2020 before opening the call to your question and answer session.
So quarter, two or $25.8 million compared to $16 million in the corresponding quarter, which.
Is an increase of 61%.
Once a carrier revenue was accorded two were $2 million compared with $4.0 million in the corresponding quarter.
There's an increase of 55%.
Despite this increase our HIV revenues are lower than normalized levels due to delays in the issue of HIV rapid test orders from Africa as a result of COVID-19.
That is further exacerbated by difficult Jade procuring airfreight transport into Africa.
However, we are seeing evidence of these COVID-19, driven delays at Beijing, and we expect the point of care HIV revenues will quickly returned to normalized levels.
In March 2021 we announced that we had submitted action screen H I V product to the World Health organization for approval.
This product once approved will allow the company 20 for the first time, the HIV screening market in Africa, which at 117 million tests annually is it 12 fold to go market by value and the confirmatory test market.
Trinity Biotech has for many years had a dominant market share with our profit unit gold.
During the last week the company received an update from the W. H O on the approval process.
The W. H O confirmed that the final assessment phase is now well advanced.
The company is confident of receiving an approval over the next number of months and then quickly leveraging the quality of its products given its advantages over the competition. Even also it's experienced sales and marketing team on the ground in Africa.
Given also our reputation for excellence within your with Uni Gold.
And also given our high volume automated production capacity capability in Ireland, and we believe that all these factors will enable us to quickly take market share and screening HIV African market.
Moving now onto our clinical laboratory business, our revenues for quarter, two were 23.9 million.
Paired with $22.0 million in corresponding quarter in 2020, which is an increase of 62%.
This increase is primarily explained by strong COVID-19 related product revenues without BTR viral transport medium product being the most significant contributor.
We have developed and continues to develop a strong suite of COVID-19 related products as just mentioned our FDA approved P. C. R.
Transport media product performed well during the quarter, it's as simple as this.
<unk> excuse me a sample collection device for COVID-19, PCR molecular testing.
It is used to store the nasopharyngeal swab, which contains the patient sample, allowing it to be transmitted in stable environment and transport medium stabilizes sample and prevents bacteria growth and maintained its integrity until such time as the test is run in the laboratory.
In addition, the company has developed a COVID-19, Elisa automate it antibody test, which is available for sale in the United States, which pushed.
Which sells and modest volume.
The company also developed another antibody tests, which is a COVID-19 point of care antibody test.
In June it made it an emergency use authorization application to the FDA for the test.
However, disappointingly the FDA informed the company that given the volume of EUA request is not pirates prioritizing this type of test for review.
Given the rapid adoption of COVID-19, vaccines and the focus on using evidence of vaccination rather than the presence of antibodies as proof of immunity. We believe that the use of antibody tests in this pandemic would be very limited and we will therefore make no further investment and antibody testing.
Okay.
Moving on then as previously announced the company is well advanced in the development of a COVID-19 rapid antigen test and that's a nitrogen test as opposed to an antibody test.
Or was it a nasopharyngeal swab, which will run in 12 minutes.
Tests will be manufactured in our automated manufacturing facility in Ireland with the cassette which is virtually identical to that of both HIV Uni gold take of a twin screen.
The test, which is largely developed is demonstrating excellent analytical results and the focus for the remainder of the development process would be on transfer to ultimately manufacture.
The validation we now expect that we will have achieved CE mark during quarter two 2022.
By enabling sales of the product throughout Europe.
We do expect to launch the product in the U S regulatory.
<unk> for such products remains fluid and most of the company will continue to assess what may.
Maybe the most appropriate regulatory approval pathway to allow our U S launch of the product.
However, we do expect.
But that will be achieved within a short number of months after European approval.
Given the evidence of breakthrough infections for those vaccinations and income.
On your inspection.
Given the evidence of breakthrough infections for those vaccinated and a continuing set of new variants. We believe that rapid antigen testing will have a continuing place in the overall public health response to COVID-19 and.
And that this would be a significant market for trinity into the future.
As previously stated our increase in revenues is mainly due to strong revenues about COVID-19, PCR vial transport media products the.
The company noted a significant reduction in demand for new orders at a V. P M during quarter, well and according to a 2021 and the spice fluid situation given the delta and the fact that over the past few weeks. We are seeing increased interest in the product. We believe that our V. T M sales in quarter three would be significantly lower.
<unk> in the prior quarters.
And now moving back to our core business.
The comparison between this year's revenues in quarter two of 2000, Twenty's mean meaningless given that there was a virtual told to shut down during quarter two of 2020.
Moving to our hemoglobin a one C business. We continue to have low instrument placements was just over 30 instruments placed during the quarter, which is less than 50% of normal placement levels. This was expected as hospitals and clinics are unlikely to purchase new capital equipment joined the pandemic. However, we are confident that these placements will fully recover.
In a post pandemic environment.
Meanwhile, hemoglobin reagents.
Meanwhile, hemoglobin raised revenues and by this I mean, the number of tests being run in our diabetes business are running at about 90% of normal again due to the fact that patients are less likely to perform discretionary tests during the pandemic.
Meanwhile, we anticipate launching our new midsize hemoglobin they won't see instrument in early 2022.
This instrument will enable us for the first time to target thousands of smaller hospitals and that vuzix diabetes clinics around the world, mostly outside of the U S and the EU previously.
Previously we had been unable to service this market that's a processing capability.
Premier instrument and also what its cost.
It's too large for their requirements, although we have designed and developed the instrument in Kansas City.
Would be manufactured in China, thereby enabling us to make the instrument available.
And the market at a very attractive price and lastly, our autoimmune business generated revenue of approximately 7% lower than in the pre pandemic environment with reference laboratory volumes down approximately 10% in product revenue was marginally down we believe that this is entirely due to the pandemic of many patients to fair doctor visits unless absolutely.
Necessary and we are.
Confident that these revenues would fully Republic post pandemic.
I now open the call to a question and answer session. Please.
Ladies and gentlemen.
At this time, we'll begin the question and answer session.
To ask a question you May press Star and then one using a touchtone telephone.
All your questions you May press star two.
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Once again that is star and then one to join the question queue.
Our first question today comes from Jim Sidoti from Sidoti <unk> Company. Please go ahead with your question.
Hi, good afternoon loaded to John can you hear me.
Yeah.
Hi, Jim Yeah, Hi, Jack I haven't care great great.
So it sounds like you are in the final stages with the WH old for sure and screen.
Hum.
The W. H O similar to the FDA and that you're not allowed to.
Talk about the the test with potential customers until the approval.
We've received or can you start to market. The device now ahead of the approval.
You could start to market the device.
Ahead of the approval, but yeah, you know I.
I don't think you'd be taken very seriously in the individual countries without it being in place. So so I mean, you can kind of warn people up a little bit, but you can't really seriously market it as such.
So how should we think about neuro the ramp in sales for this new test is this something that's going to take.
You know couple of quarters to get go or do you think you'll be able to get orders within the you know the first quarter or so after you receive.
The approval.
Jim Unfortunately, it's not as simple as that in order to have any meaningful sales, we will have to basically be the.
It can be put onto the algorithm for a particular country right. So basically each individual African country. Despite the fact, they don't actually pay for the test themselves they actually decide what products they'd like to use.
And after that then the Americans and Europeans actually makes the payments. So basically what happens is is that the the.
The individual countries will decide.
Test normally just one test would be the confirmatory it'd be the screening test, although the cancer fish and then they'd also decided what test would be the confirmatory test.
Some countries review that every year, but typically it's every two years.
So, but but but it's not a kind of end of year December thing. It's the varying times I reviewed so in order to really to in order to actually ACD sell in meaningful volume you need to basically.
We put on the algorithm as the screener of choice for a particular individual country.
So that will take time, but those algorithms are being reviewed all the times is always algorithms in you know in the melting pot and whenever I'm in each individual country, we have a distributor and.
And we are involved with the opinion leaders and we have technical people on the ground. So we'd be working the system all the time.
<unk>.
As each algorithm clubs up for review.
But it's.
It's not a straight out.
Australia.
Like at 100 meter rates its not like Youre straight out of the blocks.
Right understood and then how will you handle.
Ramping up production or have you started to build some inventory yet or are you going to wait until we actually receive some of these orders before you build up your inventory.
Is it primarily Jim we will wait until we receive orders or at least have I suppose significant line of sight. It say as ronen suggested it's a it's a relatively long sales process aim, but we're lucky to have a very experienced team at both from unit goes. It also some some kind of keep people we've got them.
On board.
We have the team that are able to make those kind of judgment calls in terms of AME.
Our solid orders are well, we have been spending a lot of our time in optimizing our manufacturing process here.
In Ireland to make sure that we can efficiently reach the levels of volume that we expect the <unk> point earlier the screening market is a much larger market. It's a much much larger volume markers. So in terms of our efficiency and the level of volumes from our plants here and it's really a step change for us and that's it.
We're putting our focus to make sure that.
When theres a windows orders are ready, we are ready to be able to fulfill them.
So is it reasonable for us to assume that you'll have some level of <unk>.
Orders in 2022, assuming you get the approval in 2021.
Oh, absolutely absolutely.
We believe we will get moving very quickly and we believe there's a couple of the bigger countries may actually decide to split the algorithm ASEAN for the screening you know to take two to two two.
It basically put us in the long side Abbas.
Okay, and then similar question could be.
For the hemoglobin device the new the new way when food test or do you think you'll have some revenue from that product in 2022 or is that going to be further out.
Yes that would be but I mean.
It's difficult to estimate when we'll have the instrument fully approved but I mean, I think mid 2022 would be optimistic.
Yes, it did.
That order of time frame.
Got it and then the last one for me can you tell us.
Oh I'm sorry.
Sorry go ahead Joe.
Okay can you tell us what the the BPM sales were in the second quarter and how they compare to a year ago.
Well I mean, I think our total our total COVID-19 product sales would have been around seven seven and change in this quarter.
Uh huh.
And where will you a year ago with that product, where there any sales in June 2020.
Yeah.
I think about train three and a half million dollars.
Okay.
Thank you.
Thank you Jim.
Once again, if you would like to ask a question. Please press star and then one to withdraw your question you May press Star and two.
Our next question comes from.
Paul <unk> from Noble equity. Please go ahead with your question.
Hey, good afternoon.
Hi, Paul.
Did you say towards the end of your formal remarks that the COVID-19 sales will be down for the third quarter.
Yeah, I did Paul Yeah, Yeah.
I mean, I think you're seeing this right across I think possibly thing is right across all diagnostic companies that.
Actually as more and more people are vaccinated I mean, despite the fact that you know the Delta variant is proving very problematic do Alex is that the total volume of testing is actually is dropping but you'd also have seen I think we've signaled is that it was almost panic buying towards the end of last year of P. T M than in general Covid products and so there was an element of.
There's an element of stockpiling.
To be kind of washed through the system. So thing so having said that on the positive. So despite the fact that we said that I also indicated that we were seeing renewed levels of interest just in the last short number of weeks again, so a very fluid situation, but yeah. We have said that quarter three will be down.
Okay.
But I think what you've seen is it is.
We're obviously towards the end of the quarter as Ronen said, we're seeing increased interest to what extent that interests manifest manifests itself into significant orders towards the end of this quarter is just one clear at this point.
We clearly don't have a full quarter of that renewed interest.
Okay and then.
The autoimmune panel that you guys are running out of the.
The lab.
Is that posting any significant sales yes.
Oh, you mean actually with <unk>.
<unk> says collect lung Covid says yeah no no. It's really got the only at the commencement stage book.
And then just remember I said to you that in general terms, our own osha immune.
In the barge volumes it might be down about 10% and that's just because again you know if people have a choice of going to stay away from a hospital or a doctor you know so it's done this problem as pressing.
It does tend to get deferred.
No.
So.
You have the long COVID-19.
Go ahead.
I would also say that on Covid products I believe a very interesting range of products, but they're very much just being rolled out as we speak now.
Yeah, what what's going to be your strategy in terms of creating.
Creating awareness about it among physicians I mean, it seems like the the type of position that could order or that might order. It was kind of panel is just so wide ranging so how might you go about.
Yeah.
Well I mean, we have a U S sales team involved in marketing those products I mean, what we do is we do papers on it we academic papers, we try and talk to opinion leaders get them interested direct sales efforts as well.
Yeah, that's the kind of message that we're using.
Okay and I.
I think you said earlier on the call that the sales team expanded I was just wondering is that in anticipation of the who approval or is that for your current products on the market.
No.
When we said that we were referring to.
Only to Africa.
So what's happened there basically is is that.
And I bet.
There you know had basically.
How had a dominant position within African HIV screening and they were acquired by a.
A number of years ago.
They've been fairly recently and basically what's happened is is that we have managed to recruit the <unk>.
And your management team that's developed the business far there.
So we have a really good team in place so.
Senior people all of that team now work for us and they are the people that basically you know managed to have a kind of you know who built that 85% market share for Alere now Abbas.
Okay.
So the argument is it that you know that.
We have a very experienced with the.
Perfect arguably the perfect.
Marching team, we have a good reputation with Uni gold and.
The product itself is performing excellently and is quicker than the Abbott test.
I mean, it W. H O ran their own trials and they got to about 100% sensitivity and specificity on large large sample sizes.
And on top of that we have this very sophisticated automated system in Ireland for a manufacturer of which can be seen it will be very easy will respond easily to demand at any level.
I think that is.
Put all those factors together, we're confident of taking.
Taking meaningful market share.
But only with only slight is trying to use a pricing.
Well the only come in marginally below it below that number.
The number one.
Sure.
Okay Alright.
Alright, well thank you.
Thanks, Ron Thanks, Paul Thanks, a lot.
Once again, if he would like to ask a question. Please press star and then one to withdraw yourself from the question queue, you May press star and two.
Yeah.
Our next question comes from Bell Labs. Please go ahead with your question.
Yes.
Good morning.
I got just several questions Ronan what what is the pricing on the alert product right now for the test.
In Africa.
For me.
It recently moved from Asia to 90, so it's basically in a sense of that 12 years and has moved in the last year to 90 cents.
Okay.
Alright, well that sounds good and you say there was 117 million of those tests a year.
170.
170 on that 117, better thank you for the clarification.
I have another question on the rapid Covid rapid antigen test.
Now you know you you've disbanded going forward for the antibody test, but you are still pursuing the antigen test.
And it seems to me you know if you go to target or some of these stores in the United States you can get that test for $23 without going to a doctor and so now they're talking about on T V yesterday at C. N N about this guy from Harvard that's pushing that you should get it quicker in the United States I believe is going to really ramp.
It was going to really accelerate the testing.
So I mean, you have to go to a doctor to do your rapid test to get it done and how are you going to compete.
Not even going to be in the ballgame until 'twenty 'twenty two if you get there you'll be in Europe, but you won't be in the United States Whats the thinking on this antigen test I mean, you're already almost there, but your approval and U S will be.
At least a year, where you're correct.
Yeah, probably got probably about a year like I think by the time, we get it and then the only reason.
We can put a firm date on Europe because.
Exactly what the regulatory pathway is but you know in.
In the USA, we're just being more cautious because.
The rules the rules pertaining to the EUA emergency use authorization and then the notification stages have changed and I've change and change regulation. For example, like we were in a situation if I round it.
You a notification basis, we can sell or antibody tests.
Somebody said the rapid antibody test.
I didn't want to reveal it. So so yeah, we're just being cautious when we say that.
We're just saying we don't we're not certain of what the pathway is because he.
These pending to change them.
But there's a huge market in Europe for us.
The antibody antigen tests, and we believe although we're coming we're coming late to market, we're coming with something of really high quality.
In terms of pricing, we can manufacturers arguably in around 50 cents.
And therefore.
No.
There'll be very strong margin honest.
Whether the product is run by a doctor or individually, but I think it's kind of almost like a side shows in some jurisdictions you can do some but typically it doesn't have to be run by a doctor, but there are many instances where it can be run from home as you know many employers are doing my own daughter is looking in London, and Goldman Sachs and she's she's tested three times a week.
And I would imagine test ever.
Every week for months and and so and you know so I think COVID-19 is with us.
Debate, how about what are the characteristics of Covid, how long it'll endure but I do believe we believe within this company that that antigen testing is going to be with us for an extended period of time I extended that into years and.
Although we acknowledge the population we believe that we have an excellent test.
Okay and is it 12 minutes fast I mean, that's pretty fast test, but it doesn't have to be administered in a doctor's office or you know telling me I could say I could buy that kit and administered at home or the employer can you don't need a clinician to do it.
It depends it depends on the jurisdiction it depends on the rules I mean, you know obviously, there's lots of antigen test available for home use.
And then there's tests, where you can take the swab. The posters and then you know the result is run in a lab and then so does various ways of doing it.
Or is it suffice it to say, there's a very big market for for antigen testing I mean, they are selling in the millions and millions of men's.
Are they currently selling antigen repetition in Europe quite a bit.
Yeah right yeah.
I was just incidence and Goldman Sachs, and London, 8000 employees and they're all tested three times a week.
Alright.
Many of them doing that.
Okay.
Uh huh.
Any examples.
What are they using what are what are they using it for their antigen tests or they just.
Do you know what guests are using it.
Let's see let's say Chinese tests.
Most of the Chinese test.
Yeah, I remember I remember also all flights in and out of the UK required antigen tests now.
Okay.
Alright, well run from do you think you can take it in.
And out of Europe as it requires a <unk> test.
When you return back into the return back into the country.
Theres loss believe me does and this antigen tests.
The way, we think about a bill is.
The position has shifted again some loss given the level of breakthrough.
Breakthrough infections.
Vaccination is no longer the strong signal that it was expected to be in terms about somebody not having COVID-19.
And that can be either in terms of.
Comfort from yourself comfort to your employer comfort to your co-workers comfort to your core travelers around being free from infection.
And I suppose the antigen test we've seen lots of examples of employers pushing any et cetera.
Way for people to get a level of comfort.
They are not infectious or the people around them or not infectious.
And I suppose just a short time ago, we thought the vaccination was probably going to give that level of comfort.
With the Delta variants in the level of breakthrough infections Act doesn't seem to be the case anymore. Because that's probably the key driver as to why we think it'll be greater longevity. In this test. These types of tests and we would have just a short while ago.
Other examples like for example, in the Dublin, Dublin, Google Google and.
Facebook and.
I'd say, it's all Sarcomas are all testing their employees weekly.
And for example, also I'm sure you're reading about this I'm I'm not sure so much tougher, but like for example in the U S. Sorry in Europe.
Admittance to concerts.
And then to all churches.
Social events required nitrogen test.
Really okay.
Alright, well worth.
So I mean, it's still it's it's something that's more of a bonus but your real excitement as a W. Joel you said that your most exciting thing you've got going I mean, besides other things.
You make a change.
I think we're excited about both.
Okay.
Okay.
Oh, that's good.
Alright, and there's nothing you can say further on the refinancing of the $100 million alone at this point right.
Further you can add.
Well, we've appointed professional advisors and animal Jam.
Thompson that there are a number of options available to us at today with the matter, but just as you can imagine it's very much in a telephone and thoughts of the board and we're working diligently honest.
Okay.
Alright.
Okay well. Thanks, so much. Thank you I appreciate the courtyard Philadelphia has helped you.
Thank you Bill and there appears to be no more questions. So I think that we will close the call and thank you everybody and thanks for your support and your interest and hope you soon.
Everybody have a good day.
Ladies and gentlemen, the conference has now concluded we do thank you for attending today's presentation. You may now disconnect your lines.