Q2 2022 Inogen Inc Earnings Call
Welcome to energy <unk> second quarter 2022 earnings conference call. At this time all participants are in a listen only mode. Following management's prepared remarks, we will hold a Q&A session to <unk>.
I ask the question at that time. Please press star followed by one on your touch home phone. If anyone has difficulty hearing the conference. Please press star zero for operator assistance as a reminder, this conference is being recorded today August four 2022.
I would now like to turn the call over to Agnes Lee Senior Vice President of Investor Relations and strategic planning.
Thank you for participating in today's call joining me are CEO <unk> <unk>.
<unk> shot and CFO Christian culture.
Earlier today <unk> released financial results for the second quarter of 2022.
This earnings release is currently available in the Investor Relations section of the Companys website, along with a supplemental financial package.
As a reminder, the information presented today will include forward looking statements.
Judy without limitation statements about our growth prospects and strategy for 2022 and beyond.
Expectations related to our financial results.
Third quarter of 2022 and expectations related to our return to profitability.
Our expectation with respect to supply challenges.
<unk> related to semiconductor and.
In other product parts.
Our POC.
Our expectations on European regulatory clearances, and approvals future reimbursement rate.
Expectations regarding increasing productivity of our internal and external sales team.
<unk> of our strategic initiatives, including innovation.
Expectations are.
Our expectations regarding the market for our products.
On our business and supply and demand for our products in both short term and long term.
The forward looking statements in this call are based on information currently available to US as of todays date August four 2022.
These forward looking statements are only predictions and involve risks and uncertainties that are set forth in more detail in our most recent periodic report filed with Securities and Exchange Commission.
Actual results may vary.
And we disclaim any obligation to update these forward looking statements, except as maybe required by law.
We have posted historical financial statements and our Investor presentation, you need Investor Relations section of the company's website. Please refer to these files for more detailed information.
During the call. We will also present certain financial information on a non-GAAP basis.
Management believes that non-GAAP financial measures taken in conjunction with U S. GAAP financial measures provide useful information for both management and investors by excluding certain noncash items and other expenses that are not indicative.
Core operating results.
Management uses non-GAAP measures internally understand manage and evaluate our business and make operating decisions.
Reconciliation between U S GAAP and non-GAAP results are presented in tables within our earnings release.
With that I will turn the call over to Ed Hudson precedent.
The Bill shop shop.
Yeah.
Thanks, Agnes good afternoon, and thank you for joining our second quarter 2022 conference call.
We have made tremendous progress in the second quarter, driving 29% sequential revenue growth compared to the first quarter of 2022.
This accomplishment can be directly attributed to the teams efforts to manage and mitigate supply chain headwinds and macro challenges to meet customer demand.
From a supply perspective, their relentless focus and investments we have made to secure semiconductor inventory semi regular channel as well as the open market.
Since our IPO theory design efforts have allowed us to manage most of the challenges so far.
As a result, we are pleased to be able to provide revenue guidance for the third quarter.
We are expecting third quarter revenue to be in the range of $97 million to $100 million representing growth of 4% to 7% versus same period in 2021.
Kristin will be going into more detail regarding our outlook when she covers our financial data.
Despite the improved visibility the supply situation continues to be fluid and we are still persistently engaging with our suppliers and working through challenges to improve coverage for the remainder of the year.
While successfully managing our supply constraints. This quarter, we have continued to execute on our transformation.
Pleased with the pace of progress the fundamental capabilities, we have strengthened and how this is impacting our execution in the current year, but more importantly, allowing us to set up for scale and profitability in 2023 and beyond.
Our continued focus on improving talent.
And our envision culture are important pillars of our transformation.
This quarter, we added Agnes Lee as our SVP of Investor Relations and strategic planning.
It brings more than 25 years of experience in Investor Relations Finance and communication from a range of small mid and large cap medical device life Sciences and diagnostics companies.
We are continuing to selectively upgrade our team at various levels to drive relentless execution and add bench strength.
We have also made significant strides executing on our commercial productivity, while driving sales performance, specifically in our DTC and prescriber themes.
Efforts and focus to drive innovation are showing early promise of setting us up for a strong pipeline in the medium term.
I will talk in more detail about this progress, but first I wanted to provide an update on the supply chain situation.
In the second quarter, we have been able to stay on top of our semiconductor supply situation. In many cases, we have actively engaged and partnered with our regular suppliers, the nymex commitment and delivery schedules.
I have also been successful in securing supply from the open channel and have successfully completed the secondary design of the motherboard on our people receive to work around certain chip shortages.
Based on our latest assessment and despite various moving pieces our outlook is cautiously optimistic.
While we have not mitigated all the suppliers, we feel we're making adequate progress to secure most of the needed parts for the third quarter. The remainder of 2022 and early 'twenty two 'twenty three.
Opportunistic forward buying of semiconductor plus what are the main part of our strategy to mitigate risk moving forward.
I would like to stress that although we have been successfully managing an unstable supply situation for several quarters any delays in securing supply or receiving materials would impact our ability to meet customer demand potentially into 2023.
Now turning to strategic initiatives, although supply chain had demanded a large amount of our time and energy. We have maintained a focus on our strategic initiatives that are essential to support beautiful growth in the future.
I would like to walk through some of our progress in that area.
One of the critical enablers of performance, if commercial excellence, which we have been focused on to drive sales growth, we have been making steady progress to expand our sales footprint specifically in the prescriber opinion, while driving increased productivity across all of our commercial operations.
We continue to actively make adjustments in our prescriber sales organization aimed at addressing the makeup and performance of the team.
While we remain focused on optimizing the overall capabilities. We achieved 57 staff sales positions out of a target of 60, despite the challenging hiring environment.
In the DTC channel, we continue to strengthen our sales capabilities and refined our organization with focus on adding new sales talent further deployment of greatly improved training and onboarding and the use of analytics and tools to support sales management and productivity.
We are happy with the early and promising signs of elevated sales performance and productivity across the cash and prescriber teams.
Another critical part of our transformation innovation and new product development.
We are determined to build a stronger innovation pipeline to drive medium term growth and support of our long term growth aspiration.
We have a mass patient and prescriber insights through ethnographic and quantitative primary research that are being used as part of our ideation and bounce selection of the concepts.
We also recently added a senior leader of the organization to drive innovation strategy and projects and have partnered with an outside innovation company with several months of successful joint efforts already underway.
Additionally, we are now working closely with our recently appointed scientific Advisory board to seek input on clinical criteria that will augment our technical commercial and regulatory considerations.
Our prioritization efforts.
The elevated disciplines capabilities and multifaceted external collaboration are starting to deliver a higher quantity and quality projects with elevated predictability.
We still have substantive work to be done over the medium term to create a solid product pipeline and I look forward to sharing more details in the future when we already have.
As a medical technology company. We have also been building a clinical capability to support our go to market and innovation strategies.
Our clinical efforts. Additionally, focus on opportunities, where we believe market development can help drive a higher level of adoption for vlccs as part of the overall oxygen therapy.
Over the last six months, we have had to direct the team's focus on leasing regulatory needs, but we recently added the clinical leader, who will focus on driving clinical discipline and product development engaging with key opinion leaders and spearheading our clinical trial work.
I would now like to move to an update on the European regulatory clearances and U S reimbursement.
As a reminder, current engine products are commercialized in the European Union under the medical device directive certificates and ours expired on May 18 2022.
The review of our MBR submission is progressing, albeit a bit slower than we expected and we will provide an update when we have a proven.
In the interim we filed delegation request in Germany, France, Spain, Italy, Belgium, the Netherlands, and a few other European countries.
Already received an approval to continue selling of the Ocs in France until the end of October 2022, as well as approval in the U K.
Under U S reimbursement from the COVID-19 public health emergency has been extended another 90 days, which will continue to allow a lower burden in terms of medical documentation and administered with steps when physicians prescribe home oxygen therapy for Medicare patients.
As we look ahead, despite the near term challenges the underlying demand for our offerings is strong and we are committed to increasing the POC and market penetration and improving patient access.
Despite the improvement in supply chain uncertainties remain and we are committed to continue to manage that with the same focus and density that we have displayed so far.
I'm pleased to report that this quarter several factors led to the improving clarity in our outlook first we have seen continued demand for our offerings and our.
Core business and DTC and rentals.
We're seeing good outcomes from our ongoing efforts to remediate <unk> backlog of orders and third we have been successful in our efforts to reasonably managed supply chain challenges.
As a result of these factors, we will be providing Q3 revenue guidance with the hope of returning to full year guidance as supply challenges abate.
Our commercial organization continues to improve as we implement training deploy analytics to drive performance and strengthen our sales management disciplines to drive productivity.
Also laid the groundwork with good initial progress in terms of strengthening our innovation pipeline and we are well positioned for continued progress with the clinical efforts moving forward.
Over the last year, we have successfully strengthened our leadership team who have demonstrated abilities to strategize execute drive efficiency and productivity and mitigate risks due to the challenging environment imaging and other companies are operating in.
I'm, particularly proud of the new fact, based and insights driven discipline that we have put in place and know that this quarter, our efforts to drive successful commercial execution and results and accelerate our innovation efforts.
We look forward to updating you on our progress as we stabilize our supply chain and refined our long term strategy that articulates, our short and long term market opportunities and our runway for growth profitability and value creation.
I will now turn the call over to custom Kristen.
Thanks, Andrea and good afternoon, everyone.
Total revenue for the second quarter of 2021.
$103 4 million.
The sequential increase of approximately 29% in the first quarter of 2022.
This improvement was made possible by higher production volumes available for sale in the quarter.
<unk> revenue increased one 8% over the comparable period in 2020 during the.
The year over year increase was driven by higher sales to our international through the <unk>.
As we prioritize product international shipment due to the imminent experiencing as the European Union medical device directive.
Additionally, we experienced a significant increase in <unk>.
Through our domestic rental channel.
This growth was partially offset by lower domestic business to business there due to the prioritization of settlement figure at three months.
For the second quarter.
Foreign exchange had a negative 180 basis points.
Our total revenue and a negative 780 basis point impact international revenue.
On a constant currency basis.
Second quarter total revenue increased three 6% over Q2 2021.
Looking at revenue on a more detail.
International <unk> increased 71, 6% to 37 4 million.
In the second quarter of 2020.
From $21 8 million.
Prior year driven by the prioritized.
In advance of the exploration of the EU.
As discussed previously.
Domestic direct to consumer sales decreased <unk>, 7% to $46 million.
Second quarter of 2022 from $49 million in the second quarter of 2021, primarily driven by lower volume.
Our sales representatives.
This was offset by an increase in average selling prices.
Domestic <unk> revenue decreased 59, 3% to $11 $2 million in the P&L in Turkey.
$27 $6 million in the prior year.
<unk> increased approximately 120% sequentially versus Q1 'twenty two.
As we began to fulfill the backlog of orders in this channel.
Rental revenue increased 25, 1% to $14 1 million.
Second quarter attorney furniture from.
From $11 $3 million in the second quarter of 2021, primarily driven by more patients on service and higher Medicare reimbursement rates.
Now on to discuss our gross margin.
Sales revenue gross margin was 43, 3% in the second quarter of 2022 declined 510 basis points from the second quarter of 2021, driven by higher purchase price variances and warranty costs.
Firstly offset by higher selling prices and improved Panama.
Rental revenue gross margin was 54, 2% in the second quarter of 2022 versus 58, 6% in the second quarter of 2020, a decline of 440 basis points.
The decrease was primarily driven by increased severance cost and depreciation partially offset by higher Medicare reimbursement rates.
Moving on to operating.
Total operating expense increased to $49 $1 million in the quarter compared to $38 $7 million in the second quarter of 2021.
This represented an increase across all categories.
First we are continuing to invest in R&D.
With an increase in spend of $1 $9 million versus the second quarter of 2021.
You already have this increased spend with <unk>.
Product development and regulatory activity.
Sales and marketing for $1 $1 million increased performance, primarily related to offering our prescriber base.
With increased consulting expense I think subscription.
With analytical tool.
Increased sales of our credit facility.
And our general and administrative expenses were $7 5 million dollar increase was primarily due to a $6 million decrease in the benefit from the change in fair value of the new era earn out liability and a $1 million.
Increase in personnel related expenses aimed at building core capabilities at the company.
In the second quarter of 2020, we reported a net loss of $3 4 million and loss per diluted share of <unk>.
<unk>.
On an adjusted basis, we reported a net loss of $366000 and an adjusted loss per diluted share of two.
Adjusted EBITDA was positive $3 $2 million.
Moving onto our balance sheet, we continue to make investments this quarter in our inventory increased significantly.
Significant additional costs.
Semiconductor chips purchased on the open market and not yet solved and finished it.
This contributed to increases in prepaid expenses and other current assets and inventory.
As of June 32020, or $25 5 million.
And $33 $5 million respectively.
Finally, we ended the second quarter of 2022 with cash and cash equivalents of $223 6 million.
With no debt outstanding.
This is in line with our cash position.
There are currently 22.
I will now turn to our financial outlook.
As <unk> mentioned earlier.
<unk> revenue guidance for the third quarter. We are now expecting total company revenue for Q3 2022 in the range of $97 million to $100 million.
Looking at growth of 4% to 7% on a year over year basis.
This range continues to reflect uncertainty associated with the phasing of domestic BW open orders and timing for these customers to return to normal ordering patterns.
Given the ongoing uncertainty related to supply chain disruptions from the COVID-19 pandemic.
Not providing detailed financial guidance critical here 2020.
He further help provide context for modeling.
We are still actively managing our supply chain constraint, including forward buying a semiconductor chip.
This has led to higher PPD.
We expect it to have an impact on our Q3 2022 gross profit and a lessening impact for the remainder of the year and into early 2023.
Do not have line of sight to women's supply chain constrained environment.
But we believe this margin compression from higher PPD is temporary.
The offsetting impact of increases to our selling prices taken over the past year.
So expect prepays and inventory levels to decline over the same period.
From an operating expense perspective, we.
We expect to continue to see increased spend in the business through the end of 2022 in.
In line with our original long range plan aimed at strengthening in case the parity.
These investments will set us up for long term revenue growth and a return to profitability.
With that.
We will be happy to take your questions.
Thank you and at this time, we'll be conducting a question and answer session.
We would like to ask a question. Please press star one on your telephone keypad.
A confirmation tone will indicate your line is in the question queue.
You May press Star two if you would like to remove your question from the queue for participants using speaker equipment and may be necessary to pick up your handset before pressing the star keys.
One moment, please while we poll for questions.
Our first question comes from the line of Matthew <unk> with Keybanc. Please proceed with your question.
Hey, guys. This is Brad Fishman on today for Matt Thanks for taking the question.
Just wanted to follow up on some of the comments around supply chain.
You guys were pretty clear around what youre seeing in the market and level of current visibility, but just thinking about some of the forward buying around shifts can you frame, how the impact of that higher cost inventory could flow through to gross margins over the next few quarters and potentially into 2023.
Hey, Brad Thanks for the question, it's going to be I'm going to take that one.
So maybe let me start by saying that the supply chain is we're cautiously optimistic as we said, but there's still a need for us to get ahead of some of the issues that we're seeing in the marketplace and that does require us to.
To make sure that we are opportunistically looking at the gaps that we have in buying forward.
From a pricing perspective were seeing prices remain almost where they are in terms of the open market channel.
So the PPV is expected to be the same at least for the coming quarter at least and then early into 2023.
Alright, and then.
Just I wanted to also just touch on the international.
Understanding there was a bolus of sales coming in ahead of the EU MTR deadline was was this level in line with your expectations. Maybe this time last quarter or was that or was it higher and then just looking ahead and can you.
I know there wasn't a specific.
Timing update but can you just touch on what needs to happen between now and then eventually getting the approval for that.
Michigan.
So Greg just wanted to make sure. The question is a two part question. The first part is on the level of sales that we achieved in Q2 and does it sustained in Q3 I just want to make sure I'm answering the right question.
Yes.
Yes, so as we have indicated before we actually ship in Q2 product to meet the demand that we had in place but ahead of the expiration of the MDT certificate that we have we do not expect the same volume to actually occurred in Q3, because we met part of that demand with the shipments that we sent in Q.
You too.
Your second question was more around what does need to happen between now and then to secure the approval on the <unk> filing.
It was hard to hear you exactly.
Exactly you got it.
Okay. So like we said in our prepared remarks, our filing is going through a review.
Progressing a little bit slower than we expected, but it is progressing.
We've received the first set of questions. We've actually are preparing to respond to them. So we will update you once we get closer and have an approval, but until then there is nothing that has changed in our expectation about the timing.
Alright, Thanks for that color and then last question from me.
There is definitely it seems like there is a backlog and demand trends are healthy can you just touch on what you're what you're seeing around consumer demand trends in the U S. And then whether you think a broader pullback in consumer spending could impact engine should have to read all things equal around the supply dynamics.
Yes, Brett it's an excellent question. So let me maybe start with the general context, just a little bit.
And medical devices and my discussions with other Ceos, we have not seen a lot of.
Pulled back in terms of spending on health care, specifically as it relates to disease states that are difficult to manage and the willingness of patients to spend out of pocket and your question is specifically around the cash channel and the inflation impact as well as the increase in cost of living. So then internally from our signals and what we're seeing we have not.
See any softening in the demand and just by way of reminding you. We actually did some price elasticity work not too long ago to make sure that we felt comfortable with taking the price increase so far maybe as a summary, we have not seen any impact in terms of the demand and with who.
We are confident that this price increase that we took has worked and realistic.
Alright, Thank you for taking my questions. Thank.
Thank you Brett.
Our next question comes from the line of Margaret Kaczor with William Blair. Please proceed with your question.
Hi, guys. This is Maggie on for Margaret today, I wanted to kind of expand on that EU MBR selection, a little bit. So I think originally the expectations were for you to have a pretty well within the third quarter.
Given the fact that it.
Going slower than expected what can we expect to assume within your guide for the international market.
Hey, Maggie it's nothing I'm going to take that one I think we had indicated before I'm almost sure that we indicated that approval was slated for Q4 that's for Q3.
Based on the timeline that we had.
As I mentioned when I answered the other question now we're still expecting this to be in line with the same timing almost.
As we get more questions and respond to them, we'll have a little bit more definitive sense of is this timeline going to be met or not but at this point in time, there is no visibility to the timeline changing for a Q4 approval.
Okay got it and then just for my second question.
The past few quarters, we've seen a little bit slower growth in terms of rental new patient adds.
Can you talk about what Youre, obviously can appreciate supply chain is.
Is impacting that but can you talk about just with your growth and your prescriber business that prescribers salesforce business, what youre kind of expecting for that rental channel.
So the rental channel as you can see from the number continues to grow at a healthy pace I think the focus that we've had again back going back a little bit to the strategic aspect of it we are building a prescriber salesforce.
We're at 57 in the prepared remarks as of this call. We're around 60, approximately so the focus continues to be there in terms of driving prescriptions into rental most of these patients go into rental driving prescriptions at the onset of care and that the priest.
Drybulk business and the team because then we can maximize the billable months because we have ahead of us.
No.
As you would expect as you put these teams into the field, we actually put the team into the field between February and March we continue to actually optimize the.
Performance of that team and their deployment, but we are very.
Positive in terms of the progress, we're making as what we've seen so far as well as the potential from a rental perspective Maggie.
Great. Thanks, so much.
Thank you.
Our next question comes from the line of Robbie Marcus with Jpmorgan. Please proceed with your question.
Hey, this is actually Ryan on the line for Ravi.
I guess I'll just firstly wanted to I was wondering if you could comment more about the U S attorney's civil investigative demand.
You had received four that you just kind of announced.
And that was used in conjunction with the false claim act and could you just give more color whatever you're able to on potential outcomes from this.
Specifically from a business perspective, as well as general validity of the claims.
This is <unk>.
That is ongoing we don't make comments on it while its going through now so we're the we're not going to be able to make comments on that.
Okay Fair enough and the second question is would you be able to talk more about the variance between customer order patterns and supply headwinds just with regards to your third quarter guidance, So which one is creating more of an uncertainty for you at this point and.
And preventing you from taking that full stack for Cortina step forward for fleet full year guidance.
Seems like from your commentary that supply is getting a little bit better at least.
More line of sight. So what is also just your outlook for customer ordering patterns as well.
So I'll answer the demand question.
Question part first we've continued to see very healthy demand in all the channels.
As I answered the previous question around the fact that we continue to see a good trend on the cash sales side.
Rental sites continues to grow and we're making progress there and the <unk> side, which was more of a supply issue not a demand issue getting.
Getting remediate it and then just wanted to clarify a little bit of the demand and not the supply issue a supply demand issue. So we actually curtailed some of the supply to the B to B channel because we were trying to manage the short supply overall in making sure that we hit our commitments from a revenue perspective, but despite that we have not seen.
A lot of movement in terms of cancellation of backlogged orders. They remain in place and we are working very diligently and remediate them. So in general if I had to characterize it. This is more of a supply issue than a demand issue overall I'm not seeing any softening in demand.
Got it thank you.
And our next question comes from the line of Mike Matson with Needham <unk> Company. Please proceed with your question.
Yes. Thanks.
So.
The commentary around the price increases that you've implemented.
That thats sticking.
Given the different channels, you've got the consumer side, and then you've got the kind of BW side, but.
Maybe you can talk about each of those but what gives you confidence that.
This will in fact stick because it.
It seems like that historically at least the <unk> side, it's been pretty cutthroat with regard to pricing.
The customer comparison are having a lot of these things on the shelves at some point it seems like they might get a little more.
Willing to wheel and deal on price, but I don't know give me I just wanted to see what your thoughts were on that.
Hey, Mike. Thanks for the question. So let me maybe make a comment on where prices historically has been despite the price increase that we took in <unk>. We are still below the prices at the 2017 and since then reimbursement has gone up sequentially.
Sequentially. Despite the small amount year on year. So we're fairly in a good place in terms of where the acceptance of our price increase was also as a reminder, we did not take price increases Opportunistically. We did it because of the increase in cost that we had and we have to make sure that we continue to cover the.
The basis, there so that has not been any adverse reaction of course like all price increases you'll get a little bit of I'll say resistance in the beginning and you manage through with them when people understand the reasons behind that.
It's sort of settles in and we had said when we took the price increase we expected between 70% 80% of the extra the stake which has materialized.
Okay got it and then on the.
On the consumer side, I mean I know.
The company used to sort through these pricing test and try to set the price to sort of maximize the.
Operating profit dollars or something like that.
So I understand right now your supply constraints. So it wouldn't make sense to do that type of approach but.
If you were to revert back to that what could that mean, you might have to lower the prices there kind of maximize the operating profit.
Yes, so Mike it's actually a very good question I'm, just going to go a little bit backwards and say I think some of the discounts on the promotions that we were accustomed to imagine what the result of weaker performance in execution from a productivity perspective.
As you know, we're going through a major upgrade of our sales disciplines and capabilities as well as equipping our sales teams with the right analytics and we have our sales management team that is basically very close to the team themselves and how they manage these opportunities we do not see ourselves in the foreseeable future going back to heavy discounts.
<unk> or promotional efforts and despite that since we stopped it actually for the last couple of quarters, we have not seen an adverse impact on demand honestly.
Okay got it.
And then just.
Physician sales force I think you said you were up to 16 people there.
Are there any kind of metrics you could share with us about how that salesforce is doing and kind of how the.
Data driven strategy is helping.
And to drive growth.
Yes.
Of course, we can make a comment I think theres, a I'm going to split the answer into two parts answered one around the new prescriber team. That's in place and then one around the DTP organization. So the prescriber theme as I mentioned earlier, we've put the team in the field between February and March we're seeing actually very good early signs in terms of productivity not only.
For the people that were Onboarding and have less tenure, but also for the people deployed in place.
Just on the some of the targeting.
We're doing with the highest prescribers in the field, where should we go what level of frequency, we should have on them and we're not going to comment on the actual numbers, yet we'd like to get a little bit of a trend under our belt. So we can start having conversations around those productivity measures, but for the time being suffice it to say, we're seeing very encouraging signs of progress.
In terms of the coverage, we have which we did not have before as we commented on earlier calls we cover roughly around 65% of where these COPD patients are treated and prescribed and what the right focus and then on the DTC side, we continue to deploy segment based selling as well as some of the disciplines around.
Improving the quality of the leads and how we're actually managing through that and despite the fact that we continue to refine the performance of the overall theme. We're seeing also encouraging progress in terms of the productivity.
The sales cycle time that is reducing a little bit as well as the wound close rates.
Okay got it thank you.
And we have reached the end of the question and answer session I'll now turn the call back over to them and be able to snapchat for closing remarks.
Thank you.
Pleased with the incredible progress that we have made to manage and mitigate supply and macro headwinds, while continuing to transform our business through steady incremental improvements to drive commercial productivity develop an innovation pipeline and clinical evidence. Although there is still much to be done. We are seeing continued underlying customer demand and building a song.
The foundation for long term sustainable growth and profitability.
To conclude I would like to thank our investors for your support and your interest in imaging and in.
And thank the management team for the continued dedication and hard work that has allowed us to continue to serve patients with oxygen therapy. It's all around the world. Thank you.
Okay.
And this concludes today's conference and you may disconnect. Your lines at this time. Thank you for your participation.
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