Q4 2021 Vicarious Surgical Inc Earnings Call

Okay.

Noon and welcome to the vicarious Surgical's fourth quarter 'twenty to 'twenty One earnings conference call. My name is Allianz and I'll be your operator for today's call.

Time, all participants are in a listen 90 days, we will be facilitating a question and answer session towards the end of today's call.

This call is being recorded for replay purposes.

I'd now like to turn the call over to my recent Bush with Gill Mountain Creek for a few introductory comments.

Thank you and thank you all for participating in today's call.

Earlier today, the carrier surgical released preliminary unaudited financial results for the three and 12 months ended.

Number 31 2021 a.

A copy of the press release is available on the company's website.

Before we begin I'd like to remind you that management will make statements. During this call that include forward looking statements within the meaning of federal Securities laws, which are made pursuant to the safe Harbor provision of the private Securities Litigation Reform Act of 1995.

Any statements contained in this call that relate to expectations or predictions of future events results or performance are forward looking statements.

All forward looking statements, including without limitation, those relating to our operating trends and future financial performance.

<unk> management market opportunity and commercialization are based upon our current estimates and various assumptions.

These statements involve material risks and uncertainties that could cause actual results or events to Ms.

Do you really differ from those anticipated or implied by these forward looking statements.

Accordingly, you should not place undue reliance on these statements.

So I'll, let them the exception of the risks and uncertainties associated with our business.

These are front of the risk factors section of our last quarterly report on Form 10-Q filed with the Securities and Exchange Commission on November eight 2021.

This conference call contains time sensitive information accurate only as of the live broadcast today March 32022.

Vicarious surgical disclaims any intention or obligation, except as required by law to update or revise any financial projections or forward looking statements.

Because of new information future events or otherwise.

And with that I will turn the call over to Adam Fox Chief Executive Officer.

Thank you Marissa and good afternoon, everybody and thank you for joining our fourth quarter 2021 earnings call. Joining me on today's call is Bill Kelly Vicarious surgical Chief Financial Officer.

On our call today, we look forward to reviewing our 2021 achievement discussing our results of operations and providing an important.

Regarding our recent conversations with the FDA.

First of all 2021 was an incredible year, I'd vicarious surgical and I want to congratulate our team and thank our investors advisors and partners for contributing to our company's achievements throughout the year.

We have a tremendous opportunity and an exciting journey ahead of us and looking back at 2021, we've accomplished several meaningful objective.

And our company for success on that journey.

And change the future of surgical robotics.

For example, we meaningfully expanded our team began beta unit testing with surgeons and engaged in a series of productive communications with the FDA, including the completion of our pre submission plan late in the year.

We also of course successfully closed our business combination to become a publicly trading company, resulting in over 119 million net proceeds to our balance sheet.

Before I dive deeper into our 2021 achievement and anticipated 2022 miles down let me remind you of our overarching mission and vision.

At vicarious surgical we are committed to leveraging next generation robotics technology to improve the standard of care for patients across a variety of surgical procedures, while minimizing associated costs to the health care system.

Despite advancements to minimally invasive surgery over the last 40 years is that est.

Estimated that more than 50% of the 39 million annual procedure addressable by legacy surgical robot are currently performed with no minimally invasive technology at all they are still being performed using open surgical technique.

The large infusions required for open surgery create significant trauma to the patient, resulting in long hospitalization and recovery time high long term cost of care and significant pain and suffering.

Due to the patient trauma associated with open surgery.

15% to 20% of such surgeries, resulting in seasonal hernias, requiring additional complex surgery to correct.

While current minimally invasive techniques seek to address the substantial unmet need these technologies fall short.

Laparoscopic instruments are difficult to manipulate have limited degrees of freedom limited reach and reduced depth perception and visibility requiring significant coordination among the surgical team to perform the procedure most.

Multi port robotic systems have overcome some of the challenges of rigid instrumentation associated with laparoscopy, but they are a large equipment printing limited portability require extensive setup and procedural time and using multiple incisions and multiple systems.

Fundamentally these system still require surgeons to choose incision site location based on the robotics and motion that they were looking for and to design the kinematic profile of their robotic tool for every procedure.

Economically these systems are expensive and surgeons encountered cumbersome and costly learning curve.

The more recent development of single Port surgical robot does not comprehensively address these fundamental issues still relying on legacy robotic architecture.

These systems require a much larger trocar incision and multiport systems and are associated with complication rates are kinder legacy open techniques.

Additional challenges include limited motion.

Ranked in visualization.

And these systems can only operate any small procedural area.

For these reasons non robotic techniques continue to be used in the vast majority of cases.

And vicarious surgical we intend to deliver the next generation and robotic assisted surgery to solve the shortcomings of open surgery and the shortcomings of current laparoscopic and robotic assisted minimally invasive surgery.

The vicarious system combines advanced miniaturized robotic <unk>.

Computer science, and three D visualization to build an intelligent single incision surgical robot that virtually transport surgeon inside the patient to perform minimally invasive surgical procedures, our proprietary decoupled actuators enable human equivalent motion with a full nine degrees of freedom.

Robotic arm, providing an experience that is more natural and more akin to the surgeons one upper body movement.

In surgical procedures conducted on cadavers. The system allows surgeons to enter the abdomen and work from nearly any angle and working nearly any direction without multiple infusions and without the need to manually reposition that system.

Stereoscopic camera that rotate them three degrees of freedom provides the surgeon with imaging of nearly every surface in the abdomen.

Vicarious system also contained 28 centers per instrument arm designed to enable real time feedback to the surgeon on fourth motion and other key data intended to enhance surgical procedures and patient outcomes.

Due to its technical advantages the system's value proposition to hospitals and ambulatory surgical centers is clear with a technology designed to enable so much capability within the abdominal cavity, we intend for our product to be much more efficient to learn setup and use during a procedure.

Unlike legacy robotic system, our system is much smaller easily moving to any operating room throughout a medical facility.

Its size and design will allow cost effective price points in comparison to existing robotic system Pops.

Hospitals, and ambulatory surgical centers would not be required to dedicate permanent state reducing expenses related to operating room turnover.

The vicarious system is designed to provide excellent dexterity with flexible setup to enable many procedures to be performed faster and more effectively with less injury and risk to the patient significantly reducing overall health care costs.

Our thoughtful design was created and adapted specifically to address current barrier to physician training and adoption.

Surgeon feedback toward our prototype validates the system ease of setup and use natural human motion and the value of system mobility from location to location.

With all of these advantages we are incredibly excited about the unique opportunity for our systems impact patient surgeons hospitals and payers.

Now, let me turn to our regulatory strategy and recent developments.

As we have commented in the past we are targeting the ventral hernia indication for our first clinical application.

All in ventral hernia, we're excited by the potential to target an array of soft tissue abdominal and pelvic procedures, including other types of hernia hysterectomy cholecystectomy and certain gastrointestinal procedures.

Our original regulatory strategy had assumed that most of these later indications would require pre market clinical trial.

However, we plan to pursue our initial indication of eventual hernia without pre market in human data.

We have recently engaged in a series of communications with the FDA, culminating in a collaborative discussion around the potential of our it system and an ongoing mutual desire to bring our robot to the market safely.

As a result of these conversations we will also pursue a pre market clinical trial in support of our initial intended indication or ventral hernia repair.

As a reminder, our system is designed to offer revolutionary advantages relative to existing robotic surgery devices from fundamentally different robotic architecture to actuation.

Due to the substantial differences between our technology and approved devices. We've reached an understanding with the FDA that a clinical trial is the best path to demonstrate the safety effectiveness and competitive advantages of our system.

We anticipate the conducting this pre market clinical trial will cause a nine to 12 months shift in our FDA submission timing relative to the expectations that we have provided in the past.

We have previously communicated our intent to file a five 10-K application for the vicarious system for ventral hernia procedures by late 2023.

We now expect to violate didn't novo classification requests by late 2024.

While this development delays our initial submission timeline, we expect a more muted impact on the long term roadmap considering our original timeline for market assumed a post approval clinical trial process prior to broad commercialization.

Overall, we are encouraged by the transparent communications with the FDA and we continue to hold immense confidence and the advantages embedded in our system design and our ability to help health systems in the U S and globally, you realize greater adoption of surgical robot.

The benefit of patients.

We have always been prepared for the possibility of a pre market clinical trial for first indication and we look forward to continuing our work with the FDA and sharing greater details with the public as we progress.

I will now shift to the milestones that we aim to achieve in 2022.

On the product development side, we are focused on the progression of our beta testing on our beta system.

On our last earnings call in November 2021, we announced that we are well on our way to successful beta unit testing with surgeons and hospital. Following the integration of our first beta one unit last summer.

We have since collected considerable surgeon and hospital feedback across attributes of the system such as clinical value from our visualization and surgical site access workflow ease of use and surgeon ergonomics, all supporting the significant potential of the vicarious system, even its beta one four.

To benefit patients surgeons hospitals and payers.

As part of this process. We have also had the pleasure of hosting many of the world's leading hernia surgeon in our facility to incorporate valuable test experiences responses ended site.

We are continuing cat of their testing a beta one units this year and incorporating the valuable feedback from beta one into our design of beta two.

We look forward to exploring opportunities later this year for beta two evaluation in a hospital setting leveraging the experience from beta one testing and our many hospital partnerships.

In addition to advancing the development of the vicarious system through beta testing, we plan to continue extensive testing with key opinion leaders in preparation for launching our surgical simulator. Later. This year. We are also in the process of identifying a center of excellence within an external health system. We.

Plan to partner with that facility this year to further our development and training pathway.

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Lastly, we are continuing to leverage our differentiated technologies and enhanced sensing to build out significant data and artificial intelligence capabilities. We see this as a unique opportunity for vicarious surgical to employ both data and AI to assist with all aspects of the procedure from preoperative planning through.

Post operative care.

We remain measured and focus and our desire to advance these exciting initiatives, while taking the time to listen encourage and prioritize feedback and incorporate the advice of our surgeons clinical and regulatory advisers and broader stakeholders to ensure that our system will be positioned for long term success.

Thank you and I will now turn the call over to Bill Kelley, Our Chief Financial Officer for a discussion of our fourth quarter and full year financial results.

Thank you Adam did you all for joining US today, let me start with the results for the fourth quarter.

Total operating expenses for the fourth quarter of 2021 were $18 $2 million three.

380% increase from $3 $8 million in the fourth quarter of 2020.

R&D expenses for the fourth quarter of 2021 were $9 3 million compared to $3 million in the fourth quarter of 2020.

The increase was primarily driven by increased head count up over 111% versus 2020 as.

As well as increased expenditures in the development of a proprietary system and increased facilities costs as we move to our new headquarters.

General Admin general and administrative expenses for the fourth quarter of 2021 were $7 3 million compared to zero point $7 million in the fourth quarter of 2020.

The increase in G&A expenses can be primarily attributed to an increase in head count as well as increased insurance and other costs incurred as we transitioned to becoming a public company.

Sales and marketing expenses for the fourth quarter of 2021 were $1 $6 million compared to zero point $1 million in the fourth quarter of 2020 the.

The increase in sales and marketing expenses can be primarily attributed to increased head count and related activity.

Adjusted net loss represents GAAP net income or loss less the changes in fair value of our warrant liabilities was $18 2 million for the fourth quarter equating to an adjusted net loss of <unk> 15 per share as compared to an adjusted net loss of $3 $8 million or an adjusted.

Loss of four cents per share for the same period the prior year.

GAAP net income for the fourth quarter was $71 million due to an $88 million reduction in the fair value of our warrant liability for the period quitting.

Equating to net income of 59 per share as compared to a net loss of $3 $8 million or a loss of four cents per share for the same period of the prior year.

Total operating expenses for the full year were $38 $6 million, 197% increase from $13 million in 2020.

R&D expenses for the year.

Full year were $22 $1 million compared to $9 $8 million in 2020.

General and administrative expenses for the full year were $13 $5 million compared to $2 $3 million in 2020.

Sales and marketing expenses for the full year were $3 million compared to zero point $9 million in 2020.

The increase in operating expenses can be primarily attributed to more than 150% increase in head count from the beginning of 2020 to the end of 'twenty to 'twenty one.

Well as an increase in development costs as we progress through beta testing of the vicarious system increased facilities costs as we expanded into a new headquarters and an increase in insurance and other expenses associated with becoming a public company during 2021.

Adjusted net loss for the full year was $38 $6 million equating to an adjusted net loss of 33 per share as compared to an adjusted net loss of $12 $9 million or an adjusted loss of <unk> 16 per share for the prior year.

GAAP net loss for the full year was $7 $3 million equating to a net loss of <unk> <unk> per share.

Appeared to a net loss of $12 $9 million.

Lots of <unk> 16 per share for the prior year.

For a reconciliation of all non-GAAP measures to GAAP. Please review our earnings press release, which we filed today.

Our cash burn rate for the fourth quarter of 2021 was $11 $5 million and we ended the year with $173 $5 million of cash and cash equivalents.

As we advance our development clinical and regulatory processes, we are updating our 2022 cash burn expectations to approximately 65 million to $75 million.

We continue to anticipate.

Ending the year with approximately $100 million in cash and cash equivalents on our balance sheet.

We look forward to continuing to provide updates as we execute on our development initiatives in the quarters ahead.

Confident that the future of vicarious surgical is bright.

I'll turn the call back over to Adam.

Thanks, Bill we are tremendously excited by the future of vicarious surgical the vicarious system has the potential to address the substantial unmet need and with the capital resources and people brought together in support of our mission over the last year, we are well positioned to see are the future of vicarious surgical toward our most important.

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Thank you again for joining today's call with that operator would you. Please open the lineup for questions.

Thank you for all Q&A, if you'd like to ask a question. Please press star followed by one on your telephone keypad now.

You changed your mind, Please press star followed by <unk>.

When preparing to ask a question. Please ensure your son is a muted locally.

Our first question today comes from Adam Meda from Piper Sandler Your line is open.

Great Good afternoon, Adam and Bill and thanks for taking the questions and congrats on the progress in in 'twenty one.

So wanted to start with the regulatory update if I heard correctly timeline for ventral hernia is de Novo FDA submission late 2024, when should we expect the pre market study for ventral hernia to commence any more color on.

Potential trial design in terms of things like number of patients and duration of follow up and then how do we think about any associated cost.

With the free market ventral hernia trial, it sounds like you're talking about the burn rate for 'twenty, two but wondering about the impact from a cash standpoint.

Related to this new development.

Yeah.

Yeah, it's all good questions. So.

So to start with the timeline.

Significant portion of what what 'twenty 'twenty four will be about in that nine to 12 month shift overall will be about conducting those those human clinical trials.

I mean that that overall and that being said it does have likely less of an impact to our revenue ramp overall, both because of additional indications as well as the fact that we'd always planned on conducting a a post market clinical trial for that commercial marketing of our device.

For what the trial design looks like.

And you know that the total design and size of are all we are still going through the detail of that with the agency and we want to make sure that we have complete alignment with the FDA before we shared the details of any trial design that that being said the agency has clearly communicated to us that we should not need long term prima.

<unk> data likely going to be a small single arm study.

Focus on improving safety and efficacy and we were able to benefit from precedents that especially in the last year or two.

Four other clinical trials with result to time trial design et cetera. So you know that being said, we have no discrete timeline to share.

But we certainly anticipate updating you more as we progress.

Bill do you want to take the financial question Yeah sure. Good question in terms of the cash burn just to level set.

As we closed Q3 with $185 million, we provided guidance of $11 million to $14 million for Q4.

And $60 million to $70 million previously for 2022.

For Q4, we ended up coming in at the lower end of that range of $11 5 million compared to a 11 of 14 guidance. So what youre seeing mostly is a spillover of spending that did not happen in <unk>.

Q4, rolling into our into the curve.

Due to the current year in either scenario, essentially we were guiding towards $100 million ending cash by the end of this calendar year and we remain on target for that.

The trial costs that I mentioned really are going to be more in that 2024 timeframe. So if you consider there's a little bit of spending lead coming in from last year to this year.

A slight uptick in activity as we continue to develop the product of continued outreach to hospitals and surgeons.

Okay. That's that's helpful guys and if I can sneak in one clarification and then one other one just on the clarification it sounds like this regulatory development.

For ventral hernia doesn't influence really.

The way that you were thinking about the regulatory pathway for the other indications the way that you were thinking about a timeline for the other indications.

Is that correct.

Yeah, I'd say certainly does not indicate influenced that from from the baseline.

You know, where we're looking at opportunities to parallel lives. So a number of those indications of wet ventral hernia given given this development rather than doing ventral hernia first and then Ah clinical trials for the remaining indications did that did that answer.

Yeah. That's helpful. Adam I appreciate that and then.

Maybe just one more to sneak in.

I think in our past discussions you talked about potentially doing some sort of.

Ah.

Investor event or that was tentatively kind of circled on the calendar for the latter part of 2022 so with.

I was wondering if that's still in the plans and should we expect to potentially see.

The beta two system at that at that point in time. Thanks, so much for taking the questions.

Yeah. It's a good question I'd say, we're certainly really excited about the potential to show off our beta to set them the potential to.

Be able to to demonstrate it in a hospital setting and still still working on the details of some of those plans will be excited to share. It as soon as we were ready.

Okay understood. Thanks again.

Yeah.

Our next question comes from Josh Jennings from Cowen. Please go ahead.

Hi, This is Eric on for Josh Thanks for taking the question.

I think we've covered the regulatory path well nichole already.

Uh huh.

I was.

Understanding that you can't market the system without approvals I was just curious to hear.

You have a sense of surgeon interest or demand that's growing as you continue to develop the platform is there any sort of buzz about bike carriers within the surgeon community, that's starting to pick up or.

What sort of demand is there from surgeons to try and use the system and beta testing any detail there would be great. Thank you.

Yeah, I think a part of the demand comes from a significant unmet need that has existed for a very long time in this industry in this space.

There is there's a huge need for change and improvement to how surgical robotics is performed and in a way that can really help patients help surgeons help hospitals and health payers.

And you know as we go through the beta testing, where we're aiming to gather all the feedback that we need to develop the detailed site and to develop the the exact device that meets that demand for surgeons and for patients and the feedback has been absolutely wonderful.

Even even further the first you know for the beta one program I, it's been incredibly.

Credible so they didn't get as far as Buzz is is concerned I think we certainly are creating some but the goal is always going to be above all else.

Really to collect that information that we need in order to design the perfect system that we can get cleared and then we'll have robust adoption when its all in the market.

That totally makes sense. Thank you and then in the past you've shown some encouraging data through third party studies around the surgeon feedback on the bike carrier system are there any other smaller sample studies like that underway or do you have plans to commission and the other studies in the future that could highlight the benefits of the system.

Uh huh.

It's a good question I think we have we have had a tremendous amount of of impact and success with some of those previous studies.

A lot of the research that we conduct a today is in house, but it's it's certainly a consideration going into the future is to conduct more third party or independent studies.

We'll note that you know as we prepare for and go through the regulatory path a lot of those studies are certainly you know independently.

Run in a significant sense and in order to collect the appropriate data for clearance.

Understood. Thank you for the questions.

Thank you.

We now turn to match mixing from credit Suisse. Your line is open.

Hey, good evening.

Thanks, so much for taking the questions.

And thanks for the regulatory update here, it's helpful to have some clarity.

Around this issue, which I know is a big question.

For much of last year to which way. This pathway was gonna proceed.

I was wondering Adam if you could talk a little bit about.

How different are you don't know exactly the structure of the trial, but can you talk about your plans for the trial.

Before this the sort of final agreement that you've.

Decided to go ahead and do the pre market as part of the de Novo filing but memory serves you had plans to perform a trial before and maybe what the.

Timing cost profile of that trial might have been and how it's how you expect it to be different than what you will actually end up and executing in other words you no change to your plan on the clinical front, regardless of that there has been a change to the filing timeline.

Yeah, It's a really fair question and.

I certainly wish I could give definitive guidance here.

What I what I can share is is you know what our plans as you mentioned, we certainly had developed a plan for that clinical trial, and we will be sharing that in reviewing that in detail with the agency, but you know this is it's an iterative process at the end of its process will continue.

Back and forth between us and the agency and collaborative with Us and N V Agency.

And we we wanted to share this information and what we knew as soon as possible. So that it's a long way of saying that we have not reviewed that trial design with the FDA yet, but our trial is designed based you know based on a what other similar companies have done.

For other similar indications and these are relatively small number of patients relatively short term follow up with with longer term, but post market post approval follow ups.

And there they're typically single arm studies compare it against the existing existing data sets. So that's part of why we are relatively confident in our ability to to mitigate a lot of the timeline changes here.

That is all with the caveat that at the end of the day and we are going to continue to work with the FDA on this.

Of course, no that makes sense and thanks for that.

And then the other is just maybe if you could clarify mm.

Oftentimes postponement of approval means some substantial postponement of revenues and.

You could maybe remind us and flesh out.

The.

If there is breakthrough designation and what that means essentially in terms of your ability to generate any revenue during this trial period and how that might.

Look differently than what we thought if we were to assume say six months ago that you might have been able to submit without without data differently does that plan look at least as we stand here today.

Yeah. So so not even just you know not even under the breakthrough designation, but even even.

<unk> under under a standard I E N clinical trial, there are a number of opportunities to to recover a lot of the cost of that trial.

Within within certain criteria.

The bigger way, though that we can significantly mitigate any any right or shifting of revenue that.

That we would be able to.

Receive covenants from paralyzing other indications and the fact that our previous Ah our previous plan had always assumed conducting a post market clinical trial in order to support marketing data and claims so that that time period is is is no.

Longer than necessary, because we will have that as a pre market clinical trial.

And in addition to that there are opportunities to paralyze. The other other indications that that all being said you know we are still are reviewing this with with the agency and frankly internally in developing the detailed those plants.

Great. Thanks for the color.

Thank you.

We now turn to Ryan Zimmerman from D. T O J your line is open.

Hey, Adam Hey, Bill Thanks for taking the questions.

Just real quick for me number one with the change in cash burn.

For 2022 of incremental $5 million.

You know it sounds like the trial is going to be in 'twenty. Four. So bill you know help us understand kind of what that incremental $5 million is going to be going towards and then I just have a brief follow up.

Yeah no sure.

So you're not giving guidance on a cash basis, we've given the guidance at the end of Q4 that we would have spent $11 million to $14 million. We spent $11 five so there's about an extra $2 5 million of last year's spend that really just bleeds into this year as a bit of that is timing in <unk>.

And to that we continue to have strong engagement with hospitals.

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Got it good to do really pursue.

The product development efforts that have been underway. So just really looking at it is there is a marginal increase in that activity and that spending.

Together with just the timing of some of the spending from last year falling into this year.

Net net result is in either scenario, we're looking at about $100 million ending.

And in cash by the end of this calendar year, which is always our goal.

Okay, and then just add I mean, you mentioned the surgical simulator.

Later in 2022 .

What is that specifically.

Youre, hoping to gain out of that you know this early in kind of the lifecycle of the system.

Yeah. It's a fair question I think there is a lot of advantages to our surgical simulator for us and in fact, you know this is of course something that we already have in house and already run the surgeons through on a very regular basis.

As recently as today.

It's a it's a really valuable tool for giving more surgeons experience with our system with our technology.

Then frankly can feasibly fly out our office or any future sites that we have our unit placed can give us feedback can get interaction and get experience and to some degree also gain excitement about our device's ability to make a significant impact in the ability to perform.

Hernia repair and teacher procedures. So we're really excited about about the the ability to use this both as a tool to.

To gain feedback and a tool for people to experience the anatomy and the way that our device interacts with with the anatomy inside of the abdomen.

Thank you.

Thank you.

Our final question comes from calls from Canaccord.

Genuity. Please go ahead.

Hi, good afternoon, everyone. So I just wanted to make sure that I understood. It here. So just to be clear late 'twenty 'twenty four de novo.

When are you expecting first revenues it should that be 2025 or is there something that could potentially happen to 425, and then I have one follow up.

Yeah, Yeah, we have obviously put guidance out there in terms of revenue build levels et cetera.

In the day, we're looking at.

Nine to 12 month delay in terms of the regulatory filing but in terms of material revenues, especially later year revenues.

Due to the parallels Asian of clinical trials and indications that Adam alluded to before.

'twenty 'twenty six 'twenty 'twenty seven revenues, we don't necessarily see a major change in those revenues, but in terms of.

To month quarter to quarter in the earlier, that's a little more difficult to say.

Okay I appreciate that and then.

I just wanted to make sure I understand there's a lot of moving pieces and still some.

Confirmations to get with the agency, but are you thinking that you might be able to launch with additional indications beyond ventral hernia.

Or or accelerate or pull forward any of those other indications sooner than previously expected.

So.

Think the best way frankly to say that says that the.

The you know incredible opportunity to do this has not escaped us but it is something that we are exploring today and not not something that you know we have a definitive plan that we're ready to share.

Okay, great. Thank you for taking the questions.

Yeah. Thank you.

We've come to the end of our Q&A I'll now hand back to Adam Saks CEO for closing remarks.

Thank you everybody very much for for joining for the wonderful questions and that concludes the call.

Have a great evening.

Thank you. This concludes today's call. We thank you for joining you may now disconnect your lines.

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