Q3 2022 Predictive Oncology Inc Earnings Call

Yeah.

The conference will begin shortly to raise your hand during Q&A you can dial star one one.

[music].

The conference will begin shortly to raise your hand during Q&A you can dial star one one.

[music].

Yeah.

Good day, ladies and gentlemen, and thank you for standing by walking through the predictive oncology third quarter 2022 earnings conference call. At this time, all participants are in a listen only mode.

After the speaker's presentation, there will be a question and answer session to ask a question. During the session you will need to press star one one on your telephone keypad at this time I would like to turn the conference over to MS. Teresa Ferguson Ma'am. Please begin.

Thank you. Thank you and welcome everyone. Thank you for dialing in.

Pleased to be here today, especially to introduce you to argue chief Executive Officer, Raymond Denari. He is going to share about his background in building launching in leading biotech companies and how those insights will shape. His vision for predictive oncology that we will hear from Dr.

Pamela I shall give us an update on sales and marketing and then Bob Myers will share our chief Financial Officer, we'll hear about them.

Our financials so we.

I appreciate you being here and real quickly I will read about our forward looking statement of note that this call will be recorded and includes forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995. These forward looking statements are based on management's current expectations estimates and.

Projections about our industry, our management's beliefs and certain assumptions made by our management words, such as expects plans intends anticipate believes estimates seeks.

Variations of such words and similar expressions are intended to identify such forward looking statements.

The forward looking statements are not guarantees of future performance and are subject to risks and uncertainties, including the risks described in public filings with the U S Securities and Exchange Commission. The company's actual results may differ materially from the anticipated results reflected in these forward looking statements.

Yeah.

Now welcome Raymond Mary.

Good afternoon, everyone, ladies and gentlemen, everyone on the team.

Oh it does.

Subscribed and those who have.

As to ask.

<unk> signed up to ask questions.

It's really a pleasure to be here today I think it's important for you to know how he came into the company.

What I see and where I think we can go with the company.

No.

Okay.

Initially about a year ago I should say.

That I was asked to advise the board and advise the company.

I was asked by one of his board members.

Take a look at what was happening in the company.

And.

In that process.

To identify.

Opportunities in the marketplace that might otherwise be.

Unrealized or to maximize the value of the assets of the company.

And how we might aggregate all of that in a way that will move us forward.

In the process of those conversations those that actually asked to join the board.

So.

I spent about a year digging deeply into <unk>.

All of the technology as a company.

And the markets for which they have application and.

Ultimately in the end after the retirement what was the announcement of his retirement.

I was asked to step in.

CEO . So the first thing that you should know is this is not a knee jerk reaction to just filling seats with a board member it wasn't at all it was that I was Friday really.

To provide some strategic direction for the company before I became a board member and then after I became board member.

Was asked to step in.

But as CEO and I will tell you that I do it gladly, we all know that it's a difficult time.

Okay.

And it's challenging and I've accepted the challenge and I'm committing myself to it.

Committing myself to it because they believe in it I believe in the company, but even the people I believe from a market opportunity I believe in the growth of the company.

What's most important right now I think as that.

Is that we focus we focus on the market opportunities and we focus on how to leverage the assets of the company and so I will tell you one of the first things that I did.

Was to do a forensic analysis of what we have.

And what I found was SaaS.

<unk> really is that.

First thing is investors should understand that.

The money that's been invested in this company has been.

Well spent because of the value that's been created in terms of the platforms in terms of the technologies in terms of the people have been brought to the table.

It's been a long process, but it's been.

Very valuable process, so while that hasn't been recognized and market adoption yet. It certainly has been realized in terms of positioning the company to be adopted in the marketplace.

None of what we have none of what Tim was going to speak to in a few minutes would be possible without the investment that's been made into the or technologies of the company and the quality of the people who will be doing and have them by the way.

This is not experimental anymore. This is not R&D, we're launching commercial technology.

So and that by the way is my background.

Commercializing identifying commercializing and launching novel technologies in the marketplace, primarily in biotechnology and specifically in oncology.

This for many years has been a personal commitment for me and my mother and my father, My brother and my grandfather died.

<unk> cancer so.

Literally pivoted many years ago to find some way to contribute to this process of discovery.

For diagnostics therapeutics and medical devices, whatever I could do is the personal commitment to do that.

Also why I agreed to take this decision is because they want to move that forward because there are a lot of people like me who's families and probably many of the families with people on this call right now have dealt with this or are dealing with it we're we'll deal with it.

So I take that as a personal.

Personal commitment on my part to do what I can to make a difference.

So in the context I'm sorry in the process of evaluating the assets of the company what I realized was.

That.

The technology that we have.

Our heft, and frankly, underutilized and underutilized because they've been underappreciated, maybe underappreciated, because we didnt recognize it but certainly underappreciated because the market doesn't really understand what we have.

One of the things that we have we talked a lot about the artificial intelligence.

All of you I'm sure. Many of you on the phone right now recognize if you've been following us for quite a while so you know what pedal technology as a core technology as well.

What the capacity of that intellectual property is in the and the artificial intelligence capacity.

But the only reason that it's relevant.

Because we.

We own and control probably the largest.

Privately held.

Tumor sample.

Our repository in the world.

All of our every scintilla biomedical research that's done is done because they have access to human tissue samples.

Specifically, our database is tumor specific meaning tumor indications tumor types.

So when I joined when I actually started with us on the board, but I began to ask questions like.

What is the value of.

The biobank.

And how is that relevant to the future direction of the company and the simple answer to the value of that.

Biobank as it can be viewed in two different ways. One is what's the value to our customers and what's the value to the company with respect to valuation.

I really can't speak to valuation I'll, let Bob talk about that for at least and how it's how it's.

How it's handled on a row.

On our balance sheet, and our financials, but I will tell you that the value of the of the biobank alone alone.

It's in excess of $400 million.

I'm not at all suggesting that tomorrow or the companies can be worth $100 million, what I'm, saying is that it has been underappreciated and we have to understand that that's an asset that we have to leverage and utilize in order to drive us into the marketplace in a way that has not been possible in the past not because we didn't have it but because we didn't use it.

So and I'll be happy at the end on Q&A.

Any of these questions.

So the combination of our pedal.

Technology, which is the artificial intelligence.

Third with access to the tissue samples the tumor samples I should say that we have in our bio repository is what makes us unique in the marketplace and that is what is going to differentiate us in the marketplace and that is what.

The companies.

Companies with whom we are speaking are interested in.

I'll tell you that we actually have again.

It's on me.

It might be here now, but I'm not going to walk away from what has or hasn't happened in the past I accepted this role to change things and make a difference.

Assuming full responsibility.

Or what has or has not happened in the past, but I will leverage that to make sure that we can move forward and grow the company.

The.

The integration of the pedal technology with the Biobank is really the differentiator for us and sets us up.

To penetrate those companies who are already customers of ours through acquisition.

That includes three or four <unk>.

Maybe five I'll ask Pamela Bob to clarify that for me because.

Into this now for 10 days.

So.

Of the top 10 pharmaceutical companies biopharmaceutical companies in the world. So we already have access to access to that customer base. So very customer base have we penetrated no, but we have access to it through our acquisitions and that is going to be a major focus and Pamela I'm sure.

So I'll address that.

So.

I should also say just for context, we do have a GMP facility good manufacturing practices facility for formulations.

And that is part now of the service line of the company. So I'm sure you all know.

That we are consolidating or maybe youre not I'll, maybe I'll be saying is for the first time.

You may not have heard this before so we're not rebranding the company we are refreshing the brand at the company and we're doing that by integrating all of what we're segments in the business into service line within the business.

So what we provide in the context of our value in the marketplace and our and our.

Differentiation in the marketplace is service along the continuum of drug discovery to drug development.

That is a very long process as you all know biopharma.

It's a business that takes a long time, primarily because it's highly regulated but we now have services and domain expertise along the entire continuum on the front end, we have which is our most distinctive and proprietary novel platform.

Is driving drug discovery to find those molecules that can go into drug development and I'll leave this to publicly Panama It's explainable.

Deeply but formulation in three D modeling.

<unk> sells fall along that continuum that theyre just apply differently.

As we talked about this I want you understand that.

While the segments may disappear that domain expertise expertise is now consolidated into the CLIA laboratory.

Yeah.

Predictive oncology CLIA laboratory.

And so.

And we're able to do that because we do have a GMP facility. So we can move from discovery to testing too.

Preclinical testing into clinical testing within the GMP environment.

And we are making inroads.

<unk>.

At the moment, we're making inroads to do exactly that we have the capacity to do that.

So.

I want I simply want by introducing myself to you to have a sense of Hawaii.

What my vision is what my commitment is.

But also to reinforce the fact that because sometimes this gets lots and I know I'm, an investor myself and have been for many years.

The people.

Are important.

The quality of the people importantly integrity the commitment.

The ability.

Of the people that are involved in this are extremely important and I have absolute confidence in the people in this company.

I will also say that although I cannot mention them right now.

Part of this strategy part of my modus operandi is to surround this company at the board level on the scientific Advisory board level with.

Key thought leaders in the industry. Some have already been announced some will soon to be announced but I view. These people as credible C level executives in the industry, who can move us in the direction that we need to go.

Bye.

Parroting, what we say, but by telling us where we need to go to use the hockey metaphor you skate to where the puck is going to be and so part of the strategy here is external to the company to provide surrogate leadership through our advisors.

To open doors in the industry that we haven't really done before quite frankly.

And for better or worse, that's going to fall to Pamela.

This is a perfect transition.

Two Pamela and Pamela is you may may or May not know <unk>, our senior Vice president of strategic sales and business development for the company.

But I want you to know when I am talking about the quality of the people in this company.

So for those of you who do know please forgive me for being redundant fits for those of you who don't.

Pamela has a ph D MBA.

Completely understand the business a science that's different than science the business of science is very different.

She before she came to predictive oncology. She was lead negotiated return sheets and contracts with Eli Lilly <unk> company.

And she was accompany layers on between the science.

And the business development functions of the company to in license not licensed strategic assets.

But she began at Lilly and finance in oncology pharmacogenomics.

Benchmarking process. So she understands not only the business of science, but the business of the business subside. She actually did the modeling for.

What it is that needs to be identified what it is to move forward with and how to move forward with it but before she became director of corporate business development at Lilly She was manager for R&D finance.

And she led the planning and the forecasting and controllers shipped responsibilities for one $5 billion across multiple.

<unk> areas within Lilly.

So when when you listen to Panama.

Youre listening as someone who was in the dairy industry that we're trying to get into she understands it from the inside out.

And while there may be growing pains, but we may need to adjust to market opportunities and shifts in the marketplace.

And changes in the way that.

Biopharmaceutical companies do business Pamela.

Pamela is the one who understands that as well or better than months.

So with that really.

Heavy obligation Pamela.

I'd ask you to join the call and.

Please put some things in perspective for us all.

Absolutely. Thank you Ramon and good morning, and good afternoon to everybody on the call.

Very much appreciate the opportunity to share with you some of the inside and advances that we have made.

At the company since the last time that we shared an update.

Last quarter.

But before we move forward with those updates I want to take a couple of steps backwards.

And share with you a little bit more about that a little bit more a little bit about the value of the services and products that we have predictive oncology.

In the last few.

Since the last time that we had the privilege of presenting to you <unk>.

The opportunity to speak with different shareholders and stakeholders of the company.

And there were a lot of questions that were brought up regarding what is the value that we're truly bringing to the biopharmaceutical company.

The biopharmaceutical industry excuse me, who are working in oncology drug discovery.

I wanted to take a couple of minutes of your time to walk you through.

That what that looks like for for Biopharma.

So one of the.

Issues with drug development is that biopharmaceutical companies are really good at developing compounds can be brought into the clinic.

And there's all sorts of statistics about it for <unk>.

Uh huh.

Matt let.

Say that one out of 10 of those drugs that actually go into the clinic and oncology as we make it to be a commercial product.

Alright, so we have a lot of years that have been spent in drug discovery. This is pre pre human.

And a lot of money that is put forth in the investments and the commitment to remove a compound into the clinical and preclinical.

In clinical trials.

With the hopes that one out of 10 right now with a track record of about one one and some of those actually making it to commercial success.

The.

Okay.

One of the issues that are driving this lack of success in the clinic is that there was talk that are seen in preclinical studies are not necessarily translated to humans.

So what might be driving that there.

There are a couple of those.

Underlying issues that we are looking to address.

Oncology.

The first one is.

The architecture and complex architecture of a tumor.

Thank you Marcelo.

More than just.

More than just yourself.

And the second one which is even more complex.

That each human being that has a particular kind of cancer breast cancer pancreatic cancer and so on each person brings a unique.

Characteristics their diversity this is called tumor heterogeneity.

And do you have this.

This diversity in the population is not evaluated in preclinical stage.

If a drug works on a particular tumor.

Human tumor that may have been evaluated in preclinical.

Once you put it in the clinic and Youre looking to see how the drug behaves when you put it in the 100 people in a couple of dozen people depending on the stage.

Those results does not necessarily translate to the results that we're seeing.

Clinic.

So as Ramon mentioned earlier, we have this rich pressure of tumor samples.

Samples that can be used to evaluate drug compounds.

Preclinical setting.

So to give you a paint a picture.

And what would happen.

You are at the end of a clinical trial in oncology clinical trials at the end of a phase II clinical trial.

And what are the.

Trial is successful or not.

You are able to take a small sample of the tumors from those patients and travel back in time.

Eight.

Six years it depends on the on the compound on the on the trial.

So as to when it was in a preclinical stage and.

Not only the drug compound that went into the clinic.

An additional dutson 5000 compounds that are being considered to treat that cancer.

So imagine being able to test.

In a laboratory and in Silicon platform.

All of those compounds would or would not behave against those tissue samples that were actually in patients and the clinical trials.

I only see whether the compound that you selected would've worked in the majority of those 100 people.

Or if there was another compound that maybe would have been better.

Turning to cancer that would have had a better response against the tumors from all of those patients.

So that is the value that the pedal platform is bringing to biopharmaceutical company it.

It has the ability to pass any preclinical stage.

Which is more affordable than doing it in a human being.

In a preclinical stage.

Able to test what the response would be from a tumor.

Simple and actual human tumor sample.

What the response would be to <unk>.

Particular drawn and ideally a collection of drug compounds that are being studied.

Not only was the result of dose.

Of those Tim.

Pain would be informative to move compounds that are more likely to succeed in a clinical setting.

But it also provides the information.

What are the best.

Tumor indications to go after.

And what my Dad Timur.

Strategy might look like for a biopharmaceutical company.

So we truly have a.

Fresher and an opportunity to disrupt.

The way the drug oncology drug development is currently being done by bringing that.

Future outcomes that would only be seen in clinic.

Clinical trials, when it's being tested in a multitude of individuals.

Bring in bringing that information to a preclinical study to make a better and more informed discussion.

That should have a higher likelihood of success.

Once it goes into the clinic.

So I would be happy to answer any questions that you may have around the science, but I just wanted to take a moment to step back.

And paint that picture to you because I think it is.

Critical to understanding the value of what we have a predictive oncology.

As Raymond said there are.

No other privately held <unk>.

Tumor sample collections.

Collections that exist that can be used for.

This kind of research to advance the research that biopharmaceutical companies are doing in oncology.

So I hope that you guys are as excited now as well.

We believe that this platform is able to disrupt the way that oncology drug development.

It's done going forward.

So with that said.

I have shared with.

With our shareholders at the last call.

We have different campaigns that we have been working through to reach out to potential clients. We continue to advance.

The leap contract that we have and although I am not able to give names or timeline that continues to be back that continues to be on track.

It has been shared in the past at the same time, we continue to.

Wire and nurture.

Additionally, it has been.

Developed through different partnering conferences that we have attended and through different approaches based on the marketing plan that we have put together.

As Ramon mentioned.

We also already have contracts.

And relationships with four of the top.

Ken biopharmaceutical companies, if you look at the biopharmaceutical companies by revenue as last reported.

We are already working with four of those companies.

We are continuing to nurture those relationships to.

So give us the opportunity to cross sell different products that we have I forget this predictive oncology so whether it is the <unk> tumor technology, whether it is the pedal platform as well as a formulation solutions that we have four large molecule development.

So I'm going to stop there because I know that I took a quite a bit of time going back and explaining the technology, but we are.

Sighted about what the future holds we have started the momentum of selling we are not now get.

Pushing E.

Something that is completely stopped there is now a momentum that is building and we are incredibly excited about.

The outcome of what those relationships are going to be.

In.

The remainder of the year as well as in 2023.

So with that I will pass it onto Bob and I. Thank you for your time and look forward to answering any questions that you have Bob.

Thank you Pamela.

<unk>.

I'd like to just make a quick announcement I know that a number of shareholders have been trying to figure out how to get into the conference and be able to ask a question.

If you go to a tweet by.

Teresa Ferguson Teresa is that under our predictive name or under U S personally.

Teresa Youre on mute.

Yes, My apologies, yes, it is under the predictive oncology link.

Hey, Roger Sir.

Sure.

If you do that now if you hadn't done it another way.

It will enable you to be able to.

Follow the procedure to dial in.

Four questions that might be on your mind.

Having said that.

<unk>.

Let me just go into before we discuss the financials specifically.

And then maybe Pamela you might help here.

And unless you said it in the course of by trying to repair this I missed it.

The financial aspect of the advantage both to perform up.

And to our investors and to us as a company.

When the pharmaceutical companies look to take this paradigm shift.

Shift with ABB really for years and go in with a much much more successful way of identifying drugs that will process and succeed.

What does that mean to them in terms of timing revenue.

Both on the backside.

Before going into clinical and then on the other side to patent life.

Bob was that a question for me I'm, sorry, I could do it but I thought you might be you'll get better okay alright.

Regarding the financials or what those numbers might look like is that what you yes in terms of how it how.

On our science is going to affect the financial well being of our company.

And the financial well being of pharma, which ultimately means that we'll make more money and our investors will do well.

Okay, absolutely happy happy to address that.

I did not I did not touch on the alright, So I had.

Shared it with you as I was trying to paint a picture of.

What is.

Going to happen when we have.

When a company partners with us and is able to increase the probability of success.

A molecule that they move into clinical development well that is going to look like is.

When a pharmaceutical company is.

Looking to advance a compound into the clinic.

They are committing funds to start a clinical phase one.

<unk> II clinical trials for oncology and Theyre committing those funds for different indications.

And then Theres other funds that are being committed to then do the further further studies.

Every.

Success that a company has in a clinical trial to move forward.

That reduces the expenditure.

A pharmaceutical company would have and trials I would have failed.

So we are this is not going to be perfect. This is not the magic ball that it's going to take some farm out which ones are going to work or not but this is going to increase the likelihood that the compound is going to be successful.

And earlier to make it easier for math, let's say is that the number that go into the clinic is.

I'm, sorry that go into the clinic and make it out into a commercial setting is 10%.

That means that there are 90, 90% of compounds nine out of town compounds that go into the clinic do not make it out on the other side.

<unk>.

There are nine phase one.

Slash two phase II trials that actually fail.

So what happens if we are able to double that probability of success, Mike wanting five companies one in five.

Compounds make it for commercial what if we're able to triple that amount.

What does that savings look like to a pharmaceutical company you can start doing you can start doing the math I'm sure in your head when you start thinking about how much a phase one trial cost how much it based upon constantly seek final costs.

Every time that you have a compound that is more likely to be successful that means that the pharmaceutical company does not have to commit those one two.

Two additional clinical trials that may be blindly going into not knowing whether the compound is going to succeed in that indication or not so as I said, we're increasingly probably probability that the compound will be successful we're providing.

Decision tools.

<unk> pharma to determine what are the best indications to go into.

So every child that does not need to be done.

It is not easy.

<unk>.

It is a more educated.

A determination as to which trials, two or which indications to pursue.

All of that provides additional funds for a pharmaceutical company to either.

Invest in additional early drug discovery.

Or to invest it in other and other aspects that they need for the company. So there is great value that the pedal platform provides to a biopharmaceutical partner.

In the drug development.

Process that they're going to follow up with each program that we would be working.

With respect to.

The value that predictive oncology is going to be able to realize.

These are not going to be.

Transactional.

Collaborations these are going to be opportunities in which we're going to going to be working with many pilot programs to begin with that we are going to be able to.

Uh huh.

Multi month campaigns that we are going to be doing with them to provide that information that is going to be critical in for the teams to determine what are the compounds that should be moved in development.

Bob is there anything else that you would like me to add no that was great in that.

That means.

Essentially that drug companies are going to save money.

<unk> companies are going to save time drug companies are going to know going into clinical is that they have a 92% chance of succeeding with our compound by going through our system.

With that being to the drug companies on the other side of it is that there is a patent life, where they have the right to sell those drugs.

So solely with or without generic.

This will extend that patent life.

Where they can have additional funds on the on the back end.

So by doing this this makes it very very attractive to our customers to our partners.

To do what we do through paddle to accelerate their program and make it more accurate and that's where we that's where we make revenue and then there are a number of ways that we can generate revenue off of that to the success of those drugs. So I think that was very important to get across in thank you Pamela for that great extra.

Our nation.

So we need to go into the final the financials and then we can turn this over to questions. So we'll make this kind of a a little bit of a brief earnings call financial discussion since you all have probably seen the queue already.

Number one we're still sitting in a great cash position, we had $25 million in our account our equity position is still solid at $29 million. We have absolutely no debt, we do have of course normal.

<unk> and accounts payable, but there is no other debt whatsoever in this company. So we're very solid.

<unk>.

Have.

As Raymond I believe mentioned.

I see there are questions that are coming through and for media about our value of our.

Biobank.

<unk>.

This is essential to understand that.

We are talking about a $435 million value.

That.

Does not show in our balance sheet.

And that goes back to accounting rules and acquisition and the method that.

Occurred from back in the days when <unk> purchased.

Precision Therapeutics, and then skyline at that time that we were purchased <unk>.

The only opportunity for us too.

The value of that money and to realize value on that money is.

The company ever were to be sold.

That would be our starting figure and then some for what we would do down the road.

To accompany that who is interested in us but it also means that's the kind of value. We're dealing with is an asset over the long term to produce revenue for this company.

So I hope that helps explain why it's something that's not on our balance sheet, but it is a very very valued asset to what we have.

I am not going to go through the other revenue items will be more than happy to answer any of those questions. But we spent a lot of time on our talking so operator I'm going to turn this over to you for questions and answers. Please.

Ladies and gentlemen, if you have a question or comment at this time. Please press star one one on your telephone keypad.

Again, if you have a question or comment at this time. Please press star one one.

In an effort to facilitate its many participants questions as possible. We ask that you. Please limit yourself to one question and one follow up if you have additional questions you are invited to rejoin the queue.

Again to ask a question or a comment it is star one one please standby, while we compile the Q&A roster.

Okay.

Okay.

Our first question or comment comes from the line of Michael Broadbent from Bad Rock Group incorporated.

Mr. Broadbent Your line is open.

Hey, guys.

I apologize my voice is still hoarse from being sick, but.

Real quick in the last conference call I asked about reverse split.

And I wanted to ask that question again going into the new compliance six month period.

What is the Companys plan to get to compliance what is the company's plan to.

Boyd the reverse split and if worse case happens where the company does need money is there any way to avoid it.

Offering after the reverse split.

Okay.

Raymond do okay, what would be the answering that.

Yes, sorry, I was on mute absolutely Bob I'm.

Im sorry, no no no problem, but we do it all the time.

So Michael Thanks for the question and.

First and foremost, let me say that.

It is our.

Desire our intention to avoid a reverse split.

We fully believe that.

That.

We are going to demonstrate to the market that our stock is valid.

Our value was high.

Is that the payroll platform and the other.

Cross selling items that we have our.

Our attractive to the populous it to the customers that we have and we feel that the stock will raise on its own it's a tough market to do it.

As you know we.

Received.

The extension of 180 days yeah.

Yesterday from NASDAQ. So we are clear through May eight before we have to.

Be concerned with the listing.

And our feeling is is that we will.

Continue to progress month by month.

Start to rise and get to the $1.

10 days.

10 consecutive days that we need to be compliant again.

But we're not stopping there we're going to go further in a bad market or not people recognize a good stock at good value.

But you have to be aware that that's not necessarily going to come by showing revenue in the third quarter or the fourth quarter. This is a long.

Sales cycle. It is something that builds what we want to show you our deals we want to make deals and be able to show you the validity of our product to the customer and that in itself should.

Would indicate that we're making a mark.

In the pharmaceutical industry as far as if we had to do a reverse split.

As we get closer in towards the middle of the year because it takes time we would.

We would do that if the stock was drastically low and not responding.

But no we would not do a.

Raise with that we have a very strong cash position and we are sitting with.

Roughly $30 million in warrants that are already within our capital structure that can be.

Exercise somewhere between the price of 80 and about $1 $20 25.

So it behooves us to be able to keep the stock where it start growing on our own and Additionally, theres no need to try to do this to arrays and bring in additional cash or additional dilution.

Michael I hope that answers your question.

It does ive got one follow up and I appreciate that.

Reassuring to know that the company has options.

Yes.

And offering a reverse split as is usually the killer and knowing that Kelly I can avoid that completely is it's reassuring to me at least timna that we're in a good position.

Follow up question.

In my industry and real estate, when I take a property to market.

Usually have an appraised at a market value.

Okay.

Served artist terminal values, so it could be on my balance sheet as an asset.

Even when I go to refinance or get leverage can that not be done with the biobank to get an appraisal of that asset. So that can be added to the books at a fair market value.

Alright so.

And the answer is yes, and no right now what we are doing.

He is taking the value of this now that we have.

Have a procedure a revenue.

Paas and.

And commercialization to value.

Databank and say at the Biobank and say.

How can we.

What would we do if we losses databank today.

What would we do to replace it how much would it cost for us to replace it how would we get the years. The 15 plus years of information that the other companies in the world does not have.

And what we're doing for that.

Is ensuring it and we have met with the insurance companies and the underwriters.

That deal with life science companies.

And we are probably within the next couple of weeks going to ensure that asset for the value. So the company is protected and it's certainly validify the value of that of that particular asset in terms of being able to put it on the books or or.

In some way and incorporate it into their financial statements.

No we can't do that really only happens.

When you acquire a company. So for example, if <unk> is commercialized back in 2018, and they were bringing in revenue and we looked at that value and say that Gee. This biobank is worth $435 million. It would have been in the app.

Acquisition price and even if we didn't pay $435 million, we would've increased our goodwill by that amount of money and been able to.

Put it on the books, but it's not something that you can just in the search during the normal course of business.

Okay, well, thank you Bob.

Thank you again, ladies and gentlemen, if you have a question or comment at this time. Please press star one one on your telephone keypad.

Once more a ladies and gentlemen, if you have a question or comment at this time. Please press star one one on your telephone keypad.

I'm going to add again, Howard if you don't have that ability. Please look at the tweet on predictive oncology oncology.

And enter through that and it will enable you to get to the.

Phone call possibility.

Thank you our next question or comment comes from the line of Robert <unk>.

Antonioni.

Standby.

Mr. <unk>. Your line is now open.

Hello.

Hello.

Hello can you hear me.

Yes, Sir.

Oh, sorry about that.

First of all thank you very much for hosting this call and welcome Ray.

My question, specifically is about something we talked about during our last call and that was around Zed predictor.

During the last call or last quarter, there was a goodwill write down it was fairly significant and at that time.

There was some discussion around revenue realization.

Revenue on the books.

Over contracts I, just wonder if you could talk to the overall value of <unk> predictor.

Is it sort of generating revenue at the rate and pace that you feel was appropriate for the acquisition or just any thoughts around the <unk> predictor and the value of it is going to be going forward. Thank you.

Ramon I could probably answer the goodwill aspect and.

The other part of that question you may want to enhance it.

Yes, you should handle the goodwill part of it.

Mainly because it preceded me but.

Other than that Pamela may be better to answer that question in terms of where it fits in the continuing with services, but either way, we will address that directly.

So let me start with the <unk>.

Goodwill write off and make sure that everybody understands the separation of <unk>.

The revenue from <unk>.

Why we had to impair the goodwill.

When you when you acquire a company.

You always have to check on a quarterly basis, where you stand on impairment for goodwill and there are a number of flags that.

Get raised that.

Determination, both analytically and empirically to determine whether or not you have to make an impairment.

The one that we came across that unfortunately hurt us was not the revenue against forecast, what we does not the value of the products.

Victor but was the fact that our stock decreased so much in this in this terrible market.

And when you calculate the stock against the value of the company you acquire EBIT.

If it's below that value then you have to infer.

And Thats what occurred.

The flag that made us.

Fortunately impair by $722 million was the fact that our company's stock was so low the value was beneath what we paid and we had to remove it.

As far as the value of moving ahead with <unk> predictor and what it brings us.

Pamela do you want to pick up from that point.

Absolutely I can take that.

Thank you so much for the question Robert.

So theres a couple of things that we are working on.

The value of that came from the acquisition of the three remodels.

Not only do we have established.

Contract with.

The major pharmacy biopharmaceutical companies.

But we have also been working internally on the development of additional.

Tumor type models.

So we have an R&D plan that is put out we have a couple of them that are ahead of us.

Development and we have already started to.

Offer these to the current customers that we have in addition, as I mentioned the existing.

Partnerships and customers that we have for the three D Mall models excuse me also provide an open door for us to cross sell.

Services like the pedal platform as well as formulation solutions. So we are absolutely leveraging not only the existing customers that we have from from that acquisition, but also the R&D pipeline that is coming out of that product line.

Thank you Pamela and Marc if I may add one I'm, sorry, Bob where you can hear me okay.

Yes.

Add a little bit of color commentary to that which is to say that.

The true value of the Z predict acquisition as access when we talk about having three or four customers who were in the top 10 global Biopharma that came through as a predictor.

As Tamara said, we now have the ability to upsell with an existing within an existing customer base to cross sell our services.

Basically incrementally provide more.

Then what three D modeling may have provided in the past.

That's the real opportunity here.

And I think everyone on this call probably knows that it's easier to upsell within an existing customer base.

To whom you are providing a service.

<unk>, who are Kumar writing, a check is easier than going out and clubbing, a new client and dragging them into the fold not that we're not going to do that we certainly are but I want to be clear about that.

Sure.

There are tangible and intangible benefits these kinds of things.

And the intangible benefit was the entre to these companies the tangible benefit will be actually being in cross sell within the customer base. So I just wanted to put that in perspective.

Thank you and I'd like to add that.

We are doing everything possible to be able to name some of these customers.

There are limitations contractually that prevent us from doing so but we are connected with the customers we are discussing.

Where and how we could utilize their name and let you know how successful we are with these customers.

And I think thats going to work.

And it depends on various levels.

And it depends on whether we have to actually go in and amend the contract whether we can do a verbal agreement that says yes, you can just at least US army. So we understand your concerns about knowing it and we will.

Endeavor to bring that to you as quickly as possible.

To answer the other part of the question.

<unk>.

Revenue and revenue recognition.

Right now we.

We are sitting with $435000 of unrealized unrecognized revenue.

If you look on the balance sheet, it's been changed under accounting rules.

It's no longer deferred revenue.

It's called contract liabilities.

And that amount is from Z predictor and will be recognized hopefully.

Not in this quarter over the course of the next quarter. These are projects that are completed signed.

By us and has to be accepted by the client so.

Unfortunately, the way these contracts work, it's not a matter of just delivering and saying okay. We did our deliverable now we recognize revenue.

They have to take that deliverable will make sure that it meets their satisfaction and works to the way we contracted then they sign off.

We have the revenue and they pay us the rest of the money.

And Thats just those that we have finished there are others that are still being worked on so he predict to fill is a good value for us in terms of ongoing revenue and it's something that.

Dr. Bush's go into.

Put under her umbrella.

Along with the other products. We have is we are one predictive oncology selling a number of cross platform products.

Okay. Thank you very much I'll go back into queue.

Any other questions.

Thank you again, ladies and gentlemen, if you have a question or comment at this time. Please press star one one on your telephone keypad.

Again, ladies and gentlemen, if you have a question or comment at this time. Please press star one one on your telephone keypad.

We have a follow up question from Mr. Robert Antimony. Your line is now open Sir.

Mr afternoon at your line is now open.

Alright, Thank you very much.

Just a follow up question.

Again from last call.

The GMP labs, we're just recently completed our or just about to be recently completed and I think there is a comment made that there is a number of sort of clients lining up.

To quote unquote get in et cetera wondering if there are any kind of status update you can share on how the level of interest the level of engagement.

How close are we to receiving contracts and certain generating activity with GMP lab.

Okay.

I'll take that I guess.

So first off we are progressing very well, Larry Lucas who runs the site in Alabama.

<unk>.

Just got back from bio Europe .

He has made an enormous number of.

Connections and follow up calls and meetings have occurred.

We're still following up from our bio International conference earlier in the year.

And we do have negotiations ongoing and we do have offers.

Out to customers on.

Pay for Adobe is now.

The other thing and they want to be clear about this is that we have mdas with all these companies and people say you're still talking about NDA. Why are you hiring number you can't speak about them because of the NDA.

What would you need to know about this is before you can have any kind of a detailed discussion, especially.

From our end of it.

We're not going to go into what we can do or what our process is without being <unk>.

Predict protected by a non disclosure for.

But that non disclosure form also is the opening of the door.

And sales. They tell you you know if you can get through the door and open. It you now have an ability to connect with the customer and Thats. What this is.

We signed an NDA with us which usually involves legal.

Expense and time on the company side. They have an interest in moving ahead with us they are talking to us and allowing us to provide an opportunity to help them and put forward an offer. So these are very important that we have these amount of NDA because that means we are in discussions and it doesn't.

I mean, they're all going to occur they're not all necessarily going to turn into revenue, but it means the doors opened with them, we do as I say have active.

Contracts offered out there.

Whether we can get them accepted immediately or in weeks.

Im not prepared to say that.

Worked at Larry and Pamela So, we'll wait and see and hopefully generate those as quickly as we can.

Bear in mind that our GMP lab is opening with phase phase one work and.

It's.

It's due again to what people are doing but we have a.

An excellent consultant that is succeeding 71 times with bringing drug processing through GMP labs, and he is working with us hand in hand to generate additional revenue and customers and to work in the lab and increase our ability to succeed.

Thank you.

Thank you again.

Again, ladies and gentlemen, if you have a question or comment at this time. Please press star one one on your telephone keypad.

I'm showing no additional questions in the queue I'd like to turn the conference back over to Matt.

For any closing remarks.

Raymond do you want to take that.

Sure well first of all since this is the first opportunity to add.

To speak with all of you directly leads to those of you on this has been able to join the call for which by the way.

I will return to what I said at the beginning is I think it's important to know who we are.

And particularly who I am and what my commitment is to make this happen.

I'm not a magician I am not a clairvoyant, but I know this industry I know the power of what we have in terms of technology. That's been developed clearly only because of the investments that have been made and predictive oncology over the years.

And particularly over the last year and a half however, much we struggled I'm not a fan of.

Using COVID-19 and the volatility of the market as an excuse for not performing but in the face of all of that I think I need to say with all honesty that in the face of all of that we have made significant progress internally, which has not been realized in the marketplace.

We can control what we can control internally in this organization and I assure you that that everyone is committed and me in particular, we cannot control what's out of our control, which is basically the market and those are those are interrelated realities that we have to deal with.

But I can say is that I am grateful.

I am very grateful for you for your continued support of this company because without all of you. This would not be possible and it's up to US now to show you what we can do with that.

There are opportunities that we cannot discuss for all the obvious reasons, but we are highly regulated were public company and highly regulated industry and what we can and can't say as circumspect.

So I can say that with absolute certainty there is a path forward. We do have a validated platform technology. We do have an asset that has never been recognized before and never been spoken about before frankly.

We can now leverage in a way that was not possible before.

So.

I will say to you all of you not having that you personally that you have my personal commitment and I will do everything possible to raise the expectations of this company to restore the credibility to the investors and to honor. The people in this company that is actually made this happened over the last X number of years.

This has been going for a long time, we talked about.

The business segments, but I will tell you that Hello mix.

The CLIA laboratory, where the where the biobank is.

Biobank as resides rather.

That business goes back 30 years, not 15 years, but 30 years. So I happened to have done due diligence on that business.

Before the original founding business, Dr Kornbluth, and Shaun Mcdonald founded it so I know the entire trajectory of that company and that technology and that biobank and the significance of it in the marketplace.

So this is a convergence of circumstances more than anything else.

The panel I have worked together in the past I know the entire history of the opportunity that resides in the artificial intelligence and bio repository.

To which we have access and frankly control.

And those things are new I mean, new when I say, new I mean at least newly realized or refreshed.

That is what we need to focus on moving forward.

We also know that we're in the biopharmaceutical industry and this does not happen overnight. This is a long.

Regulated meticulous process, so I want everyone to be comfortable with the fact that we know what we're doing but we're also at the disposal of those mechanisms and those workflows that are inherent to the very industry and the companies.

With whom we will be working we have to fit into the work their workflow theyre not going to change their workflow for us.

So.

As I said at the very beginning I am used to launching novel technologies that serve light when you change standard of care for a drug it takes a lot of effort to get people comfortable with that because you're telling them that they have to.

Change the way that they've been doing things for many years. The difference is they're eager for it they are desperate for does it different mechanism of action here in terms of advancing.

Doug Discovery and drug development, the one thing I can say with absolute certainty.

Is that with this company and with this team and with the industry in which we're working the primary focus is on saving lives.

On saving lives.

The patients who are desperately in need of cancer.

Cancer care.

These are the people that were focused on we are going to be an anonymous invisible.

<unk> parent.

Thread that goes throughout this discovery and development process, but we are critical to it because we can advance it.

And my hope is that we can expedite that process.

In ways that have never been possible before.

So with that I would I think you all I. Thank you all for us.

Sticking with that so as long as you have and I appreciate it.

Ladies and gentlemen, thank you for participating in today's conference. This concludes the program you may now disconnect everyone have a wonderful day.

The conference will begin shortly to raise your hand during Q&A you can dial star one one.

[music].

Okay.

[music].

[music].

Good day, ladies and gentlemen, and thank you for standing by walking through the predictive oncology third quarter 2022 earnings conference call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During the session you will need to press star one one.

On your telephone keypad at this time I would like to turn the conference over to MS. Teresa Ferguson Ma'am. Please begin.

Thank you. Thank you and welcome everyone. Thank you for dialing in we're pleased to be here today, especially to introduce you to our new Chief Executive Officer, Raymond Denari. He is going to share about his background in building launching in leading biotech companies and how those insights.

His vision for predictive oncology, then we will hear from Dr. Pamela I shall give us an update on sales and marketing and then.

Bob Myers will share our Chief financial Officer, we'll hear about it.

Our financials so we.

<unk>.

I appreciate you being here and real quickly I will read about our forward looking statement of note that this call will be recorded and includes forward looking statements within the meaning of the private Securities Litigation Reform Act of 1095. These forward looking statements are based on management's current expectations.

And projections about our industry, our management's beliefs and certain assumptions made by our management words, such as expects plans intends anticipate believes estimates seeks variations of such words and similar expressions are intended to identify such forward looking statements.

The forward looking statements are not guarantees of future performance and are subject to risks and uncertainties, including the risks described in public filings with the U S Securities and Exchange Commission. The company's actual results may differ materially from the anticipated results reflected in these forward looking statements.

I now welcome Raymond the Mary.

Good afternoon, everyone, ladies and gentlemen, everyone on the phone.

Hello.

Subscribed and those who have.

As to ask.

Signed up to ask questions.

It's really a pleasure to be here today I think it's important for you to know how it came.

The company.

But what I see and where I think we can go with the company.

No.

Initially about a year ago I should say.

That I was asked to advise the board and advise the company.

I was asked by one of board members to come in and take a look at what was happening in the company.

Yes.

In that process.

To identify.

Opportunities in marketplaces might might otherwise be.

Unrealized or to maximize the value of the assets of the company.

And how we might aggregate all of that in a way that will move us forward.

And then in the process of those conversations those that actually asked to join the board.

So.

I spent about a year digging deeply into all of the technologies in the company.

And the markets for which they have application.

And ultimately in the end after the retirement of the announcement of his retirement.

To ask to step in.

<unk> CEO . So the first thing that you should know is this was not a knee jerk reaction to just fill seats with a board member it wasn't at all it was that I was Friday really.

I had some strategic direction for the company before I became a board member and then after I became a board member I was asked to step in.

And I will tell you that I do it gladly, we all know that it's a difficult time.

Okay.

And it's challenging and I've accepted the challenge and I'm committing myself to it and committing myself to it because they believe in it I believe in the company, but even the people I believe from a market opportunity I believe in the growth of the company.

What's what's most important right now I think is that we.

Is that we focus we focus on the market opportunities and we focus on how to leverage the assets of the company and so I will tell you one of the first things that I did.

Was to do a forensic analysis of what we have.

And what I found was.

Fascinating really is that I think the first thing is investors should understand that.

The money that's been invested in this company has been.

Well spent because of the value that's been created in terms of the platforms in terms of the technologies in terms of the people who've been brought to the table.

It's been a long process, but it's been.

Very valuable process, so while that hasn't been recognized and market adoption yet. It certainly has been realized in terms of positioning the company to be adopted in the marketplace. None of what we have none of what Tim was going to speak to in a few minutes would be possible without the investment that's been made into the or technology.

The company and the quality of the people, who will be doing and have them by the way.

This is not experimental anymore. This is not R&D, we're launching commercial technology.

So and that by the way is my background.

Commercializing identifying commercializing and launching novel technologies in the marketplace, primarily in biotechnology and specifically in oncology.

This for many years has been a personal commitment for me My mother and my father, My brother and my grandfather have all died of cancer. So.

And we pivoted many years ago to find some way to contribute to this process of discovery.

For diagnostics therapeutics and medical devices, whatever I could do was a personal commitment to do that and it's also why I agreed to take this decision is because they want to move that forward. Because there are a lot of people like me who's families and probably many of the families with people on this call right now.

Dealt with this or are dealing with it or we'll deal with it.

So I take that as a personal.

A personal commitment on my part to do what I can to make a difference.

So in the context I'm sorry in the process of evaluating the assets of the company what I realized was.

That.

The technology that we have.

Our heft, and frankly, underutilized and underutilized because they've been underappreciated, maybe underappreciated, because we didnt recognize it but certainly underappreciated because the market doesn't really understand what we have.

One of the things that we have we talked a lot about the artificial intelligence.

All of you I'm sure. Many of you on the phone right now recognize if you've been following us for quite a while so you know what pedal technology as a core technology is in.

What the capacity of the intellectual property is in the and the artificial intelligence capacity.

But the only reason that it's relevant.

Because we.

We own and control probably the largest.

Privately held tumor sample.

Bio repository in the world.

But every scintilla biomedical research that's done is done because they have access to human tissue samples.

And specifically our database is tumor specific meaning tumor indications tumor types.

So when I joined.

Actually they started with us on the board but.

I began to ask questions flight.

What is the value of the biobank.

And how is that relevant to the future direction of the company and the simple answer to the value of that.

Biobank as it can be viewed in two different ways. One is what's the value to our customers and what's the value to the company with respect to valuation.

I really can't speak to valuation I'll, let Bob talk about that for a at least and how it's how it's.

How it's handled on our own.

On our balance sheet, and our financials, but I will tell you that the value of the of the biobank alone alone.

It's in excess of $400 million.

I'm not at all suggesting that tomorrow or the companies can be worth $100 million, what I'm, saying is that it has been underappreciated and we have to understand that that's an asset that we have to leverage and utilize in order to drive us into the marketplace in a way that has not been possible in the past not because we didn't have it but because we didn't use it.

So and I'll be happy at the end on Q&A.

Any of these questions.

So the combination of our pedal.

Technology, which is the artificial intelligence.

Third with access to the tissue samples the tumor samples I should say that we have in our bio repository is what makes us unique in the marketplace and that is what is going to differentiate us in the marketplace and that is what.

The companies.

Companies with whom we are speaking are interested in.

I'll tell you that we actually have again.

It's on me.

It might be here now, but I'm not going to walk away from what has or hasn't happened in the past I accepted this role to change things and make a difference.

Assuming full responsibility.

Or what has or has not happened in the past, but I will leverage that to make sure that we can move forward and grow the company.

No.

The.

The integration of the pedal technology with the Biobank is really the differentiator for us and sets us up.

To penetrate those companies who are already customers of ours through acquisition.

That includes three or four <unk>.

Maybe five I'll ask Pamela Bob to clarify that for me because.

Into this now for a full 10 days.

No.

Of the top 10 pharmaceutical companies biopharmaceutical companies in the world. So we already have access to access to that customer base. So very customer base have we penetrated no, but we have access to it through our acquisitions and that is going to be a major focus and Pamela I'm sure will.

So I'll address that.

So.

I should also say just for context, we do have a GMP facility good manufacturing practices facility for formulations.

And that is part now of the service line of the company. So I'm sure you all know.

That we are consolidating or maybe youre not maybe it'd be seamless for the first time.

You may not have heard this before so we're rebranding the company we're refreshing the brand at the company and we're doing that by integrating all of what worse segments in the business into service line within the business.

So what we provide in the context of our value in the marketplace and our <unk>.

Differentiation in the marketplace is service along the continuum of drug discovery to drug development.

That is a very long process as you all know biopharma.

It's a business that takes a long time, primarily because it's highly regulated.

But we now have services and domain expertise along the entire continuum on the front end, we have which is our most distinctive and proprietary novel platform.

Is driving drug discovery to find those molecules that can go into drug development and I'll leave this to public with the Panama It's explainable.

Deeply but formulation in three D modeling.

<unk> sells fall along that continuum that theyre just apply differently.

As we talked about this I want you understand that.

While the segments may disappear that domain expertise expertise with now consolidated into the CLIA Laboratory.

Yeah.

Predictive oncology CLIA laboratory.

And so.

And we're able to do that because we do have a GMP facility. So we can move from discovery to testing too.

Preclinical testing into clinical testing within the GMP environment.

And we are making inroads.

<unk>.

At the moment, we're making inroads to do exactly that we have the capacity to do that.

So.

I want I simply want by introducing myself to you to have a sensitive who I am.

What my vision is what my commitment is.

But also to reinforce the fact that because sometimes this gets lots and I know I'm, an investor myself and have been for many years.

The people.

Are important.

The quality of the people importantly integrity the commitment.

The ability.

Of the people that are involved in this are extremely important and I have absolute confidence in the people in this company.

I will also say that although I cannot mention them right now.

Part of this strategy part of my modus operandi is to surround this company at the board level on the scientific Advisory board level with.

Key thought leaders in the industry. Some have already been announced some will soon to be announced but I view. These people as credible C level executives in the industry, who can move us in the direction that we need to go.

Bye.

Parroting, what we say, but by telling us where we need to go to use the hockey metaphor you skate to where the puck is going to be and so part of the strategy here is external to the company to provide surrogate leadership through our advisors.

To open doors in the industry that we haven't really done before quite frankly.

And for better or worse, that's going to fall to Pamela.

This is a perfect transition.

To Panama and Pamela is you may may or May not know Pamela as our senior Vice president of strategic sales and business development for the company.

But I want you to know when I am talking about the quality of the people in this company.

So for those of you who do know please forgive me for being redundant fits for those of you who don't.

Pamela has a ph D MBA.

Completely understand the business of science, that's different than science the business of science is very different.

She before she came to predictive oncology. She was lead negotiated return sheets and contracts that Eli Lilly <unk> company.

And she was accompany layers on between the science.

And the business development functions of the company to in license not license strategic assets.

But she began at Lilly and finance in oncology pharmacodynamics.

Benchmarking process. So she understands not only the business of science, but the business of the business subside. She actually did the modeling for.

What it is that needs to be identified what it is to move forward with and how to move forward with it but before she became director of corporate business development at Lilly She was manager for R&D finance.

And she led the planning and the forecasting and controllers shipped responsibilities for $1 $5 billion across multiple.

<unk> areas within Lilly.

So when when you listen to Panama.

Youre listening as someone who was in the dairy industry that we're trying to get into she understands it from the inside out.

And while there may be growing pains, but we may need to adjust to market opportunities and shifts in the marketplace.

And changes in the way that.

Biopharmaceutical companies do business Pamela.

Pamela is the one who understands that as.

As well or better than most.

So with that.

Italy.

Heavy obligation Pamela.

I'd ask you to join the call and.

Please put some things in perspective for us all.

Absolutely. Thank you Ramon and good morning, and good afternoon, and thank you everybody on the call.

Very much appreciate the opportunity to share with you some of the inside and advances that we have made.

At the company since the last time that we shared an update.

Last quarter.

But before we move forward with those updates I want to take a couple of steps backward and share with you a little bit more about that a little bit more a little bit about the value of the services and products that we have predictive oncology.

And the last deal.

Since the last time that we had the privilege of presenting to you <unk>.

The opportunity to speak with different shareholders and stakeholders of the company and there were a lot of questions that were brought up regarding what is the value that we're truly bringing to the biopharmaceutical company.

The pharmaceutical industry excuse me.

Our working in oncology drug discovery, So I wanted to take a couple of minutes of your time to walk you through.

What that looks like for for Biopharma.

So one of the.

Issues with drug development.

That biopharmaceutical companies are really good at developing compounds to be brought into the clinic.

And there's all sorts of statistics about it for <unk>.

Of math.

Let's say that one out of 10 of those drugs that actually go into the clinic in oncology.

We may get to be a commercial product.

Alright.

A lot of years that have been spent in drug discovery. This is pre pre chemo.

And a lot of money that is put forth in the investments and the commitment to move a compound into the clinical and preclinical.

Clinical development.

Finical trials.

With the hopes that one out of 10.

Right now with a track record of about one one and some of those actually making it to commercial success.

So the.

Okay.

One of the issues that are driving this lack of success in the clinic.

Yes, there was talk that are seen in preclinical studies are not necessarily translated to humans.

So what might be driving that.

There are a couple of those underlying issues that we are looking to address our preclinical pharmacology.

The first one is the.

<unk> architecture and complex architecture of a tumor.

Hello.

<unk> more than just.

More than just yourself.

And the second one which is even more complex.

Fact that each human being that has a particular kind of cancer breast cancer pancreatic cancer and so on each person brings a unique.

Sure.

Characteristics diversity this is called tumor heterogeneity.

And do you have.

Diversity in that population is not evaluated in preclinical studies.

So if a drug works on a particular tumor.

And tumor that may have been evaluated in preclinical.

Once you put it in the clinic and Youre looking to see how the drug behaves when you put it in 100 people in a couple of dozen people depending on.

Those results does not necessarily translate to the results that we're seeing in the clinic.

So as Ramon mentioned earlier, we have this rich pressure of tumor samples.

Samples that can be used to evaluate drug compounds.

Preclinical findings.

So to give you a paint a picture.

And what would happen if.

You are at the end of a clinical trial in oncology clinical trials at the end of a phase II clinical trial.

And whether that trial is successful or not.

You are able to keep a small sample of the tumors from those patients and travel back in time.

Eight.

Six years it depends on the compound on the on the trial.

Back when it was in a preclinical stage.

Not only the drug compound that went into the clinic.

But an additional Dutchman 5000 compounds that are being considered to treat that cancer.

So imagine being able to pass.

In a laboratory and in Silicon platform.

All of those compounds, one or would not behave against those tissue samples that were actually in patients and the clinical trials and.

And not only see whether the compound that you selected would've worked in the majority of those 100 people.

Or if there was another compound that maybe would have been better.

At treating the cancer that would have had a better response against the tumors from all of those patients.

So that is the value that the pedal platform is bringing to biopharmaceutical company.

Is the ability to pass.

Clinical stage.

Which is more affordable than doing it in a human being.

In a preclinical stage to be able to test what the response would be from a tumor sample and actual human tumor sample.

What the response would be to <unk>.

In particular, John and ideally a collection of compounds that are being studied.

Not only was the result of dose.

Of those.

Pain would be informative to move compounds that are more likely to succeed in a clinical setting.

But it also provides the information.

What R&D that tumor.

Occasions to go after.

And what my Dad Timur.

Strategy might look like for a biopharmaceutical company.

So we truly have a.

Fresher and an opportunity to disrupt.

The way the drug oncology drug development, that's currently being done by bringing that.

Future outcomes that would only be seen in clinic.

Clinical trials when do you think testbed in a multitude of individuals.

Bring in bringing that information to a preclinical study to make a better.

More informed discussion.

That should have a higher likelihood of success.

According to the Clinton.

So I would be happy to answer any questions that you may have around the science, but I just wanted to take a moment to step back.

And paint that picture to you because I think it is.

Critical to understanding the value of what we have predictive oncology.

As Raymond said there are.

No other privately held <unk>.

Tumor sample collections.

Collections that exist that can be used for.

This kind of research to advance the research that biopharmaceutical companies are doing in oncology.

So I hope that you guys are as excited now as well.

We believe that this platform is able to disrupt the way that oncology drug development.

It's done going forward.

So with that said.

I have shared with us.

With our shareholders at the last call.

We have different campaigns that we have been working through to reach out to potential clients. We continue to advance.

The lead contract that we have and although I'm not able to give names or timeline that continues to be back that continues to be on track.

Has been shared in the past at the same time, we continue to.

Wire and nurture.

Additionally, it has been.

Developed different partnering conferences that we have attended and through different approaches based on the marketing plan that we have put together.

As Ramon mentioned.

We also already have contracts.

<unk> relationships with four of the top.

Ken biopharmaceutical companies, if you look at the biopharmaceutical companies by revenue as last reported.

We are already working with four of those companies.

We are continuing to nurture those relationships to.

So give us the opportunity to cross sell different products that we have as predicted predictive oncology. So whether it is the <unk> tumor technology, whether it is the pedal platform as well as the formulation solutions that we have four large molecule development.

So I'm going to stop there because I know that I took a quite a bit of time going back and explaining the technology, but we are.

Sighted about what the future holds we have started the momentum of selling we are not now get.

Pushing E.

That is completely stopped there is now momentum that is building and we are incredibly excited about.

The outcome of what those relationships are going to be.

And.

The remainder of the year as well as in 2023.

So with that I will pass it onto a Bob and I. Thank you for your time and look forward to answering any questions that you have Bob.

Thank you Pamela.

<unk>.

I'd like to just make a quick announcement I know that a number of shareholders have been trying to figure out how to get into the.

The conference and be able to ask a question.

If you go to tweet by three.

Teresa Ferguson Teresa is that under our predictive name or under U S personally.

Teresa you are on mute.

My apologies, yes, it is under the predictive oncology link.

Roger Sir.

If you do that now if you hadn't done it another way.

It will enable you to be able to.

Follow the procedure to dial in.

Four questions that might be on your mind.

So having said that.

Sure.

Let me just go into before we discuss the financials.

Typically.

And then maybe Pamela you might help here.

And unless you said it in the course of my trying to repair this I missed it.

The financial aspect of the advantage both to perform up.

And to our investors and to us as a company.

When the pharmaceutical companies look to take this paradigm.

Shift with David doing for years and go in with a much much more successful way of identifying drugs that will process and succeed.

What does that mean to them in terms of time and revenue.

Both on the backside.

Before going into clinical and then on the other side to patent life.

Bob was that a question for me.

Alright, I can do it but I thought you might be you do get better okay, alright. So.

Regarding that.

Financials or what those numbers might look like is that what you yes in terms of how it.

How on our science is going to affect the financial well being of our company.

And the financial well being of pharma, which ultimately means that we'll make more money and our investors will do well.

Okay, absolutely happy to happy to address that.

I did not I did not touch on the alright, So I had.

Shared with you as I was trying to paint the picture.

What is.

Going to happen when we have.

When a company partners with us and is able to increase the probability of success.

A molecule that they move into clinical development.

That is going to look like is.

When a pharmaceutical company is.

Looking to advance a compound into the clinic.

They are committing funds to start a clinical phase one.

Flash two clinical trials for oncology and Theyre committing those funds for different indications.

And then Theres other funds that are being committed to then do the further further studies.

Every.

Success that a company has in a clinical trial to move forward.

That reduces the expenditure.

A pharmaceutical company would have in trials that would have failed.

So we are this is not going to be perfect. This is not the magic ball that it's going to take pro farm out which ones are going to work or not.

This is going to increase the likelihood that the compound is going to be successful.

And earlier to make it easier for math, let's say is that the number that go into the clinic is.

I'm, sorry about going to the clinic and make it out into a commercial setting is 10%.

And that means that there are 90, 90% of compounds nine out of town compounds that go into the clinic do not make it out on the other side. So I believe they.

There are nine phase one.

Slash two phase II trials that actually fail.

What happens if we are able to double that probability of success, Mike one in five companies.

One in five compounds make it to commercial what if we're able to triple that amount.

What does that savings look like to a pharmaceutical company you can start doing you can start doing the math I'm sure in your head when you start thinking about how much a phase one trial cost how much it based upon constantly seek final costs.

Every time that you have a compound that is more likely to be successful that means that a pharmaceutical company does not have to commit those one.

Two additional clinical trials that may be blindly going into <unk>.

Whether the compound is going to succeed in that indication or not so as I said it will increase in the property probability that the compound will be successful, we're providing decision tools for pharma to determine what are the best indications to go into.

So every child that does not need to be done.

It is not a.

It is a more educated.

Determination of the which trials, two or which indications to pursue.

All of that provides additional funds for a pharmaceutical company to either.

Invest in additional early drug discovery.

Or to invest it in other and other aspects that they need for the company. So there is great value that the pedal platform provides to a biopharmaceutical partner.

In the drug development.

Process that they're going to follow up with each program that we would be working.

With respect to.

The value that predictive oncology is going to be able to realize.

These are not going to be.

Transactional.

Collaborations these are going to be opportunities in which we're going to going to be working with maybe pilot programs to begin with that we are going to be able to.

Uh huh.

Multi month campaigns that we are going to be doing with them to provide that information that is going to be critical for the teams to determine what are the compounds that should be moved in in development.

Bob is there anything else that you would like me to add no that was great in that.

That means.

Essentially that drug companies are going to save money.

Drug companies are going to save time drug companies are going to know going into clinical is that they have a 92% chance of succeeding with our compound by going through our system.

With that being to the drug companies on the other side of it is that there is a patent life, where they have the right to sell those drugs.

Solely with or without generic.

And this will extend that patent life.

Where they can have additional funds on the backend.

So by doing this this makes it very very attractive to our customers to our partners.

To do what we do through paddle to accelerate their program and make it more accurate and that's where we that's where we make revenue and then there are a number of ways that we can generate revenue off of that to the success of those drugs. So I think that was very important to get across in thank you Pamela for that great export.

Our nation.

So we need to go into the final the financials and then we can turn this over to questions. So we'll make those kind of.

A little bit of a brief earnings call financial discussions since you all probably seen the queue already.

Number one we're still sitting in a great cash position, we had $25 million in our account our equity position is still solid at $29 million. We have absolutely no debt, we do have of course normal.

Cools and accounts payable, but there is no other debt whatsoever in this company.

Were very solid.

<unk>.

Have.

As Raymond I believe mentioned.

I see there are questions that are coming through and for media about our value of our.

Biobank.

<unk>.

This is essential to understand that.

We're talking about a $435 million value.

That.

Does not show in our balance sheet.

And that goes back to accounting rules and acquisition and the method that.

Occurred from back in the days when <unk> purchased.

Precision Therapeutics, and then skyline at that time that we were purchased <unk>.

The only opportunity for us too.

The value of that money and to realize value on that money is.

The company ever were to be sold.

That would be our starting figure and then some for what we would do down the road.

To accompany that who is interested in us but it also means that's the kind of value. We're dealing with is an asset over the long term to produce revenue for this company. So.

So I hope that helps explain why it's something that's not on our balance sheet, but it is a very very valued asset to what we have.

I am not going to go through the other revenue items will be more than happy to answer any of those questions. But we spent a lot of time on our talking so operator I'm going to turn this over to you for questions and answers. Please.

Ladies and gentlemen, if you have a question or comment at this time. Please press star one one on your telephone keypad.

Again, if you have a question or comment at this time. Please press star one one.

In an effort to facilitate as many participants questions as possible. We ask that you. Please limit yourself to one question and one follow up.

If you have additional questions you are invited to rejoin the queue.

Again to ask a question I'll have comment it is star one one please standby, while we compile the Q&A roster.

Okay.

Okay.

Our first question or comment comes from the line of Michael Broadbent from bedrock group incorporated.

Mr. Broadbent Your line is open.

Hey, guys.

Bob I apologize my voice is still hoarse from being sick, but.

Real quick in the last conference call I asked about reverse split.

I wanted to ask that question again going into the new compliance six month period.

What is the company's plan to get to compliance what is the company's plan to avoid the reverse split.

And if worse case happened.

The company does need money is there any way to avoid.

And offering after the reverse split.

Okay.

Yes.

Raymond do okay, we've been answering that.

Yes, sorry, I was on mute absolutely Bob.

Sorry no.

No problem, but we do it all the time.

Michael Thanks for the question and.

First and foremost, let me say that.

It is our <unk>.

Desire our intention to avoid a reverse split.

We fully believe.

That we are doing.

We will demonstrate to the market.

Our stock is valid or value was high.

And that the payroll platform and the other.

Cross selling items that we have our.

Our attractive to the populous it to the customers that we have and that we feel that the stock will raise on its own it's a tough market to do it.

As you know we.

Received.

An expansion of 180 days.

Yesterday from NASDAQ. So we are clear through may 8th before we have to.

Be concerned with the listing and our feeling is is that we will.

Continue to progress month by month.

Further start to rise and get to the $1.

For 10 days.

Five days that we need to be <unk>.

Compliant again.

We're not stopping there we're going to go further in a bad market or not people recognize a good staff and good value.

But you have to be aware that that's not necessarily going to come by showing revenue in the third quarter or the fourth quarter. This is a long sales cycle. It is something that builds what we want to show you. Our deals we want to make deals and be able to show you the validity of our <unk>.

Product to the customer and that in itself should indicate that we're making a mark in.

In the pharmaceutical industry as.

As far as if we had to do a reverse split.

And as we get closer in towards the middle of the year.

Because it takes time we would.

We would do that if the stock was drastically low and not responding.

But no we would not do a.

Arrays with that we have a very strong cash position and we are sitting with.

Roughly $30 million in warrants.

Or are already within our capital structure that can be exercised somewhere between the price of 80 and about $1 $20 25.

So it behooves us to be able to keep the stock where it start growing on our own and Additionally, theres no need to try to do this we will raise and bring in additional cash or additional dilution.

Michael I hope that answers your question.

It does I have got one follow up and I appreciate that.

It's reassuring to know that the company has options.

Because.

And offering a reverse split is usually the killer and knowing that Kelly I can avoid that completely is it's reassuring to me at least to know that we're in a good position.

A follow up question and.

In my industry and real estate, when I take a property to market.

Usually have an appraised at a market value.

So either have ensured artist terminal values. So it could be on my balance sheet as an asset.

Even when I go to refinance forget leverage can that not be done with the biobank to get an appraisal of that asset. So it can be added to the books at a fair market value.

<unk>.

Alright so.

On the answers yet to know right now what we are doing.

He is taking the value of this out now that we have.

Have a procedure a revenue.

Paas and.

And commercialization to value.

Databank and say at the Biobank and say.

How can we.

What would we do if we losses databank today.

What would we do to replace it how much would it cost for us to replace it how would we get the years the 15 plus years.

The information that the other companies in the World does not have.

And what we're doing for that.

Is ensuring it and we have met with the insurance companies and the underwriters.

That deal with life science companies.

And we are probably within the next couple of weeks going to ensure that asset for the value. So that the company is protected and it's certainly validify the value of that of that particular asset in terms of being able to put it on the books or or.

In some way incorporated into their financial statements.

No we can't do that really only happens.

When you acquire a company. So for example, if <unk> was commercialized back in two.

2018, and they were bringing in revenue and we looked at that value.

Said that Gee. This biobank is worth $435 million it would've been in the acquisition price and even if we didn't pay $435 million.

We would've increased our goodwill by that amount of money and been able to.

Put it on the books, but it's not something that you can just in the search during the normal course of business.

Okay, well, thank you Bob.

Yeah.

Thank you again, ladies and gentlemen, if you have a question or comment at this time. Please press star one one on your telephone keypad.

Once more a ladies and gentlemen, if you have a question or comment at this time. Please press star one one on your telephone keypad.

I am going to add again, Howard if you don't have that ability. Please look at the tweet on predictive oncology oncology.

Antero through that and it will enable you to get to the <unk>.

Phone call possibility.

Thank you our next question or comment comes from the line of Robert and team.

Tony Tony.

Goodbye.

Mr. <unk>. Your line is now open.

Hello.

Hello.

Hello can you hear me.

Yes, Sir.

Oh, sorry about that.

First of all thank you very much for hosting this call and welcome Ray.

My question, specifically is about something we talked about during our last call and that was around Zed predictor.

During the last call or last quarter. There was a goodwill write down that was fairly significant and at that time.

There was some discussion around revenue realization.

Of revenue on the books.

Over contracts I, just wonder if you could talk to the overall value of <unk> predictor.

Is it sort of generating revenue at the rate and pace that you feel was appropriate for the acquisition or just any thoughts around with <unk> predictor and the value of it is going to be going forward. Thank you.

Ramon I can probably answer the goodwill aspect and.

The other part of that question you may want to enhance it.

You should handle the goodwill part of it.

Mainly because they preceded me but.

Other than that it's Pamela may be better to answer that question in terms of where it fits in the continuing with services, but either way, we will address that directly.

Alright, So let me start with the.

The goodwill write off and make sure that everybody understands the separation of.

The revenue from.

<unk>.

Why we had to impair the goodwill.

When you acquire a company.

You always have to check on a quarterly basis, where you stand on impairment for goodwill and there are a number of flags that.

Get raised that.

Need determination, both analytically and empirically to determine whether or not you have to make an impairment.

The one that we came across that unfortunately hurt us was not the revenue against forecast, what we does not the value of the products.

Victor but was the fact that our stock decreased so much in this in this terrible market.

And when you calculate the stock against the value of the company you acquire EBITDA.

If it's below that value then you have to impair.

And Thats what occurred.

The flag that made us.

Fortunately impair by $722 million was the fact that our company's stock was so low.

The value is beneath what we paid and we had to remove it.

As far as the value of moving ahead with <unk> predictor and what it brings us to panel or do you want to pick up from that point.

Absolutely I can take that.

Thank you so much for the question Robert.

So theres a couple of things that we're working on.

The value of that came from the acquisition of the three D models.

Not only do we have established.

Contract with.

The major pharmacy biopharmaceutical companies.

But we have also been working internally on the development of additional.

Tumor type models.

So we have an R&D plan that is put out we have a couple of them that are ahead of development and we have already started to.

I offer these to the current customers that we have.

In addition, as I mentioned the existing <unk>.

Partnering gypsum and customers that we have for the three D Mall models excuse me also provide an open door for us to cross sell.

Services like the pedal platform as well as formulation solutions. So we are absolutely leveraging not only the existing customers that we have from from that acquisition, but also the R&D pipeline that is coming out of that product line.

Thank you Pamela and Marc if I may add one I'm, sorry, Bob where you can then okay.

Okay.

I would add a little bit of color commentary to that which is to say.

The true value of the Z predict acquisition as access when we talk about <unk>.

<unk> three or four customers, who were in the top 10 global Biopharma that came through as a predictor.

As Tamara said, we now have the ability to upsell with an existing within an existing customer base to cross sell our services to.

Basically incrementally provide more.

Then what three D modeling may have provided in the past.

That's the real opportunity here.

And I think as everyone on this call probably knows that it's easier to upsell within an existing customer base.

To whom you are providing a service and who are Kumar writing a check is easier than going out and putting a new client and dragging them into default not that we're not going to do that we certainly are but I want to be clear about.

There are.

There are tangible and intangible benefits to these kinds of things.

And the intangible benefit was the entre to these companies the tangible benefit will be actually being in cross sell within the customer base. So I just wanted to put that in perspective.

Thank you, Amy and I'd like to add that.

We are doing everything possible to be able to name some of these customers.

There are limitations contractually that prevent us from doing so but we are connected with the customers we are discussing.

Where and how we could.

Utilize their name and let you know how successful we are with these customers.

And I think that's going to work.

And it depends on various levels.

And it depends on whether we have to actually go in and amend the contract whether we can do a verbal agreement that says yes, you can just at least US army. So we understand your concerns about knowing it and we will.

Endeavor to bring that to you as quickly as possible.

To answer the other part of the question in terms of revenue and revenue recognition.

Right now.

We are sitting with $435000 of unrealized unrecognized revenue.

You look on the balance sheet, it's been changed under accounting rules. So it's no longer deferred revenue.

It's called contract liabilities.

And that amount is from as you predicted and will be recognized hopefully.

If not in this quarter over the course of the next quarter or these are projects that are completed.

Signed.

By us and has to be accepted by the client. So unfortunately the way. These contracts work, it's not a matter of just delivering and saying okay. We did our deliverable now we recognize revenue.

They have to take that to deliver but we'll make sure that it meets their satisfaction and works to the way we contracted then they sign off.

You have the revenue and they pay us the rest of the money.

So and that's just those that we have finished there are others that are still being worked on so he predict fulfill is a good value for us in terms of ongoing revenue.

And it's something that.

Dr <unk> is going to.

Put under her umbrella.

Along with the other products. We have is we are one predictive oncology selling a number of cross platform products.

Okay. Thank you very much I'll go back into queue.

Any other questions.

Thank you again, ladies and gentlemen, if you have a question or comment at this time. Please press star one one on your telephone keypad.

Again, ladies and gentlemen, if you have a question or comment at this time. Please press star one one on your telephone keypad.

We have a follow up question from Mr. Robert Antimony. Your line is now open Sir.

Mr. <unk>. Your line is now open.

Alright, Thank you very much.

Just a follow up question.

Again from last call.

The GMP labs, we're just recently completed our or just about to be recently completed and I think there was a comment made that there was a number of clients lining up.

To quote unquote get in et cetera wondering if is there any kind of status update you can share on that.

The level of interest the level of engagement.

How close are we to receiving contracts and certain generating activity with GMP lab.

Okay.

I'll take that I guess.

So first off we are progressing very well Larry to Lucas who runs the site in Alabama.

<unk>.

I just got back from bio Europe .

He has made an enormous number of.

Sure.

Connections and follow up calls and meetings have occurred.

We are still following up from our bio International conference earlier in the year.

And we do have negotiations ongoing and we do have offers.

Out to customers on.

Pay for Adobe is now.

The other thing and they want to be clear about this is that we have mdas with all these companies and people say, you're still talking about NDA why youre already behind them or you can't speak about them because of the NDA.

What would you need to know about this is before you can have any kind of a detailed discussion, especially.

From our end of it we're.

We're not going to go into what we can do or what our process is without being.

Predict protected by our non disclosure for.

But that non disclosure form also is the opening of the door.

And sales. They tell you you know if you can get through the door and open. It you now have an ability to connect with the customer and Thats. What this is.

We signed an NDA with us.

Usually involves legal.

Expense and time on the company side. They have an interest in moving ahead with us they are talking to us.

Allowing us to provide an opportunity to help them and put forward an offer. So these are very important that we have these amount of NDA because that means we are in discussions it doesn't mean, they're all going to occur that not all necessarily going to turn into revenue, but it means the doors opened with them, we do as I say have active.

Contracts offered out there.

Whether we can get them accepted immediately or in weeks on.

Im not prepared to say that that's being worked at with Larry and Pamela So, we'll wait and see and hopefully generate those as quickly as we can.

Bear in mind that our GMP lab is opening with phase phase one work.

<unk>.

It is.

It's new again to what people are doing but we have a.

An excellent consultant that is succeeded 71 times with bringing drug processing through GMP labs.

And he is working with us hand in hand to generate additional revenue and customers and to work in the lab and increase our ability to succeed.

Thank you.

Thank you.

Again, ladies and gentlemen, if you have a question or comment at this time. Please press star one one on your telephone keypad.

I'm showing no additional questions in the queue I'd like to turn the conference back over to managed.

For any closing remarks.

Raymond do you want to take that.

Sure well first of all since this is the first opportunity and has had to speak with all of you directly at least those have you been able to join the call for which I'm grateful by the way.

I will return to what I said at the beginning is I think it's important to know who we are.

And particularly who I am and what my commitment is to make this happen.

Not a magician I am not a clairvoyant, but I know this industry I know the power of what we have in terms of technology. That's been developed clearly only because of the investments that have been made and predictive oncology over the years.

And particularly over the last year and a half however, much we struggled I'm not a fan of using COVID-19 and the volatility of the market as an excuse for not performing but in the face of all of that I think I need to say with all honesty that in the face of all of that we have made significant progress internally, which has not been really.

In the marketplace.

We can control what we can control internally in this organization and I assure you that debt.

Everyone is committed and me in particular, we cannot control what's out of our control, which is basically the market and those are those are interrelated realities that we have to deal with.

But I can say is that I am grateful.

I am very grateful for you for your continued support of this company because without all of you. This would not be possible and it's up to US now is to show you what we can do with that.

There are opportunities that we cannot discuss for all the obvious reasons. We are highly regulated were public company and highly regulated industry and what we can and can't say as circumspect.

So I can say that with absolute certainty there is a path forward. We do have a validated platform technology. We do have an asset that has never been recognized before and never been spoken about before frankly.

We can now leverage in a way that was not possible before.

So.

I will say to you all of you not having that you personally that you have my personal commitment that I will do everything possible to raise the expectations of this company to restore the credibility to the investors and to honor. The people in this company that is actually made this happened over the last X number of years.

This has been going for a long time, we talked about.

The business segments, but I will tell you that Hello mix.

The CLIA laboratory, where the where the biobank is.

Whereas biobank as resides rather.

That business goes back 30 years, not 15 years, but 30 years. So I happened to have done due diligence on that business.

Before the original founded the business, Dr Kornbluth, and Shaun Mcdonald found with it so I know the entire trajectory of that company and that technology and that biobank and the significance of it in the marketplace.

So this is a convergence of circumstances more than anything else.

The panel I have worked together in the past I know the entire history of the opportunity that resides in the artificial intelligence and bio repository.

To which we have access and frankly control.

And those things are new I mean, new when I say, new I mean at least newly realized or refreshed.

That is what we need to focus on moving forward.

We also know that we're in the biopharmaceutical industry and this does not happen overnight. This is a long.

Regulated meticulous process, so I want everyone to be comfortable with the fact that we know what we're doing but we're also at the disposal of those mechanisms and those workflows that are inherent to the very industry and the companies.

With whom we will be working we have to fit into the work their workflow theyre not going to change their workflow for us.

So.

As I said at the very beginning I am used to launching novel technologies that serve light when you change standard of care for a drug it takes a lot of effort to get people comfortable with that because you're telling them that they have to.

Change the way that they've been doing things for many years. The difference is they're eager for it they're desperate for does it different mechanism of action here in terms of advancing.

Doug Discovery and drug development, the one thing I can say with absolute certainty.

Is that with this company and with this team and with the industry in which we're working the primary focus is on saving lives.

On saving lives.

The patients who are desperately in need of.

Cancer care. These are the people that were focused on we are going to be an anonymous invisible transparent.

Thread that goes throughout this discovery and development process, but we are critical to it because we can advance it.

And my hope is that we can expedite that process.

Ways that have never been possible before.

So with that I would I think you all I. Thank you all for us.

Sticking with us for as long as you have and I appreciate it.

Ladies and gentlemen, thank you for participating in today's conference. This concludes the program you may now disconnect everyone have a wonderful day.