Q4 2022 Ligand Pharmaceuticals Inc Earnings Call
Good evening My name is Rob and I'll be your conference operator today at this time I'd like to welcome everyone to the ligand Pharmaceuticals fourth quarter 2022 earnings webcast. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you like.
To ask a question during this time simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question again press. The star one. Thank you so I'm in Latam or head of Investor Relations you May begin your conference.
Thanks, Rob.
Welcome to <unk> fourth quarter of 2022, your financial results and business update conference call speaking today for ligand will be Todd Davis, CEO , Thomas <unk>, CFO , and Matt Kornberg, President and CFO will use non-GAAP financial measures in some of our statements will be forward looking including those related to our financial condition results of operations financial guidance and the impact of the company.
<unk> pandemic.
Additional information concerning risk factors and other matters concerning ligand can be found in our earnings press release, and our periodic filings with the SEC. We undertake no obligation to revise or update any statements to reflect events or circumstances. After the date of this conference call.
Reconciliation between the non-GAAP financial measures, we discuss on the closest GAAP financial measure can be found in our earnings release issued earlier today I would now like to turn the call over to Todd Davis.
Thank you Simon and good afternoon, everyone and thanks for joining our fourth quarter 2022 earnings call for those who didn't get a chance to listen to our recent analyst day event in December or meet at the Jpmorgan Conference I Am Todd Davis, the CEO of ligand I'm delighted to have the opportunity to address you all today.
And share some of my thoughts on the company's performance and our future prospects.
No I had been on the board for many years over the past two months.
I've been getting up to speed on the internal workings of the company.
The meeting with the team working with the board of directors and spending time with a number of our shareholders I am confident that the future of ligand is a bright one.
Our initial and primary goal for the company is to maintain a laser like focus on financial performance.
To that end in 2022, we've had a strong finish to the year key components to highlight.
Royalty revenue grew by nearly 50% to $72 5 million compared to $48 9 million in 2021.
Profitability in 2022.
$2 44, and adjusted diluted EPS from our core continuing operations compared to $2 35, and adjusted diluted EPS in 2021.
Including sales of Captisol for Covid.
Justin diluted EPS of $4 79 in 2022.
Our balance sheet ended the year with over $200 million of cash and liquid investments.
We successfully completed the spin out of omni AD, enabling ligand to refocus on its core strengths and original value proposition.
Last week's approval of our settlement in partnership with <unk> Therapeutics.
Adds to our royalty generating asset portfolio.
Positions us for strong continued growth.
<unk>, our CFO will provide more 2022 financial results as well as our increased 23 financial guidance.
The following framework may be useful to share and explaining why ligand is situated in a unique and advantageous segment in our ecosystem and how we might think about further building the business.
This involves two tactical approaches in general.
One is licensing our existing platforms and portfolio of assets to generate as many non accretive product royalty opportunities as possible.
And to invest in capital directly into clinical stage development assets with superior risk reward profile.
Yeah.
For a framework today number one I would say is the capital market's dynamic dynamics enable this opportunity.
There is a significant imbalance between the demand for alternative capital and the supply of alternative capital Light project Finance.
This capital can be invested in specific programs and assets versus companies. This offers partners more flexibility in how they finance their business.
Companies are increasingly increasingly looking for alternative forms of financing.
And market inefficiencies allow us to be highly selective and pick programs with the highest return characteristics.
Under project Finance, we can provide capital for clinical development projects.
And rather than receiving debt or equity securities in return for our capital we draft customized royalty contracts should accommodate our partners' needs, but offer us as an investor unique advantages as well.
Number two we're focused on execution, we will be partnering with clinical development companies to accumulate mid to late stage clinical royalty assets.
Our goal is to accumulate royalty interests and we can do that.
In multiple ways, one we can partner existing technology platforms.
<unk>, we can implement project finance.
Three we can identify acquisition opportunities of existing royalty contracts, where companies with attractive royalty assets.
And in terms of new platform acquisitions.
We might do that but we will only look at operating light models with high operating margins.
That is likely to be sporadic and infrequent, but can be very accretive when found and achieved.
Also we will target superior risk adjusted returns on assets that address high unmet clinical need.
And we will leverage our 100, plus partnerships and the experienced pharmaceutical and scientific management team that we have to originate diligence and execute on deals and investments around these high value clinical development programs.
Number three our internal focus will be on near term financial performance and.
In late stage clinical pipeline growth, which equals future financial growth as well as adding talented people.
We will be refocusing R&D, making the company leaner overall, while adding selective talent that can execute on deal origination diligence negotiations et cetera.
And we will expand our external focus and networks by working more closely with the board and adding scientific regulatory and other talented advisors.
Okay.
We will also be institutionalizing, our deal process and origination diligence prosecution and portfolio management with special emphasis on proactive origination.
This will add more high quality assets to our mid to late stage clinical pipeline, which again, we believe equals future sustained growth.
In terms of number for portfolio management, we want to maximize our existing rich asset base for.
<unk> will be our seventh large royalty who was acquired via M&A.
Out license contributor.
And became a development success.
That was a result of M&A, followed by key portfolio management.
In 2023, we expect 10 major catalysts, unlike an existing late stage pipeline.
And we will also be leveraging our existing relationships within the portfolio to originate new opportunities and even attract.
Follow on investments with existing partners.
So to summarize 2022 was another strong year of financial performance under my leadership, we will continue to focus on measures to make the company leaner, while adding select talent to focus on the origination and execution of new deals. These deals are intended to grow our late stage clinical development pipeline of royalty assets.
Which in turn will create sustainable future growth.
Next our financial performance will be reviewed by our CFO Gerardo and that will be followed by a review of the portfolio operations by our President Matt Kornberg title.
Thanks Todd.
For the fourth quarter of 2022 was not only transformative literally but also very strong financially with continued impressive royalty revenue growth. My review will reflect <unk> financial results on a continuing operations basis now that omni app now that the omni apps may not as complete.
Total revenues from continuing operations for the quarter were $50 4 million.
Royalty revenue increased 25% to $22 million from $17 6 million a year ago. This growth was driven by strength in amgen's, Kyprolis, which once again reported record quarterly net sales as well as contributions from <unk> and <unk> Pharmaceuticals is released as they both exceeded our.
Yes.
Related to Captisol and investors are all familiar with this topic by now.
Starting in 2020 with the onset of the pandemic, we dramatically increased our captisol sales related to Kobe over the past three years, we sold more than $300 million of Captisol for Colgate like a peak year being 2021.
In 2022, we sold about $88 million of Captisol to coming down from about $141 million in 2021.
These sales are an excellent source of cash for ligand, but are not indicative of the performance of the core <unk> business. So.
So far we have not received any cap software company order this year.
Total captisol sales were $26 9 million for the quarter versus $35 4 million a year ago core Captisol sales were $3 3 million this quarter versus $7 1 million last year with the difference due to the timing of customer orders Captisol.
Captisol sales related to COVID-19 were $23 $5 million during the quarter compared to $28 3 million a year ago.
Contract revenue in Q4, 2022 was $1 5 million as compared to last year's fourth quarter of $3 5 million.
This difference in contract revenue is generally due to timing of partner events and related milestone payments.
GAAP net loss from continuing continuing operations for the quarter was $14 5 million or <unk> 86 per share and this compares with a GAAP net loss from continuing operations of $3 $2 million or <unk> 19 per share in the prior year quarter.
The increase in GAAP net loss is largely driven by a $24 8 million tax expense, resulting from resulting from a valuation allowance placed on certain of our California deferred tax assets posted the omni App spinouts.
$9 8 million accelerated depreciation expense on certain manufacturing equipment, resulting from the post call the decrease in production volumes.
A one time noncash stock compensation expense of $13 8 million associated with the retirement of our former CEO offset by a $44 2 million unrealized gains resulting from from the increase in value of our holdings in Viking Therapeutics stock.
Adjusted diluted EPS for the quarter of 20 for the fourth quarter of 2002 was $1 36.
And this compares with $1 47.
In the fourth quarter of 2021.
Excluding COVID-19 related Captisol sales, our adjusted diluted EPS for Q4, 2022 was <unk> 75.
Compared with 62.
In Q4 of 2021.
Total revenues from continuing operations for the year were $196 2 million royalty revenue increased 48% to $72 5 million from $48 9 million in 2021.
The year over year growth in royalty revenue was driven by strengthened <unk> Paradise, Yes, as Riley and Amgen's Kyprolis.
We recorded $15 $8 million in tariff airtight royalty revenue, representing a 200% increase over last year.
<unk> royalty revenue grew to $8 8 million from $2 4 million last year and Kyprolis royalty revenue grew 10% to $30 1 million.
Total captisol sales were $104 5 million for the year versus $164 3 million a year ago core Captisol sales were $15 4 million in 2022 versus $23 4 million last year with the difference due to a priority given to COVID-19 shipments as well as the timing of customer orders.
Captisol sales related to COVID-19 were $88 1 million in 2022 compared to $140 8 million a year ago.
Contract revenue in 2022 was $19 2 million versus $28 4 million in the prior year. This difference in contract revenues generally due to timing of partner events.
And related milestone payments.
GAAP net loss from continuing operations for the year was $5 2 million or <unk> 31 per share and this compares with GAAP net income of $76 4 million or $4 48.
Per diluted share in the prior year.
GAAP net loss is largely driven by the items I mentioned in relation to Q4 adjusted.
Adjusted diluted EPS for 2022 with $4 79, and this compares with $6 27 in the prior year, excluding COVID-19 related Captisol sales, our adjusted diluted EPS for 2022 was $2 44.
Compared with $2 35 in the prior year.
Turning to the balance sheet, including $6 7 million shares of Viking Therapeutics stock at December 31, 2022, <unk> had cash and investments totaling $212 million and approximately $77 million in outstanding convertible debt, which we intend to repay in cash when it matures in may of this year.
Turning now to guidance today, we are raising our 2020 revenue and earnings outlook. We saw strong growth in royalty revenue in 2022, and now forecast 2023 royalty to be in the range of 74 million to $78 million.
This increase is driven mostly by upside in <unk> and <unk>, we expect that <unk> will continue to contribute significantly to our royalty revenue line and we're assuming that the <unk> launch will contribute to our royalty revenue in the back half of the year.
We expect we expect to Captisol material sales in 2023 to be about $21 million in contract revenue to be $25 million with a large contribution recently with the approval of <unk> Santo.
These revenue components resulted in total core revenue growth of 11% to 15% or $120 million to $124 million.
In addition to the upside from royalties.
We also have begun reducing expenses following some reductions in the R&D line offset by some increased resources on the business development team. We are now forecasting cash operating expenses of $43 million.
As a result of the increased revenue and decreased expense guidance, we are increasing our expected adjusted diluted EPS to be $3 30.
To $3 45.
For modeling purposes, we're assuming captisol gross margins at 65% range.
Tax rate of 22% and $17 3 million shares outstanding.
As a reminder, I'd like to direct listeners to our fourth quarter earnings press release issued earlier today and available on our website for a reconciliation of adjusted financial results to the GAAP results I talked about today.
I'll turn the call over to Matt to provide an update on the business.
Thanks, Tom.
2022 was a year of significant change for ligand with strong underlying business performance through it all.
Financially, we exceeded our expectations for our core business and sold significantly more cap software cover than we expected.
Operationally, we successfully completed the spinoff of our omni of antibody discovery platform and strategically our partners posted continued strong sales growth with commercial programs, while clinical stage assets made excellent progress, including positive results for many key programs.
Obviously, the biggest news of note recently with the <unk> approval late last week, our partner <unk> received approval for <unk> in Iga nephropathy.
Available markets presented as the brand name <unk> when they launch the drug next week.
Our center and is a key pipeline asset for ligand will earn a 9% royalty on sales and we expect that this will be a significant driver of long term growth for our royalties.
If you expect a decision from the EMA for the conditional marketing authorization for <unk> for Iga nephropathy in Europe in the second half of 2023.
Iga nephropathy.
An estimated 150000 patients in the U S and a similar number in Europe .
Finally, 30050 thousand of the U S patients are expected to be addressable under the indication approved via the accelerated approval.
So our sense is the first non immunosuppressive treatment approved for this indication.
In our view the initial label is consistent with the expectations going into the Paducah date and does not change the outlook for the drug in the short term or the long term consensus sell side estimates for percent and show peak sales exceeding $1 billion.
Which if achieved would makes power center in la against both significant royalty by a factor of two.
For 2023 trillion are pointed to the existing consensus estimates from their research community, which currently range from about 10 million to 45 million for the year.
<unk> indicated that the initial ramp will be gradual and that the full iga nephropathy protect trial data in Q4 should be a catalyst for change and the change in the label and a ramp in the sales.
Look forward to tracking the largest percent in the additional progress on the <unk> and the potential approval for both indications and additional geographies.
Turning quickly to our 2022 financial performance I just wanted to reiterate reiterate the themes that tableau has described with all the movement it might be difficult to evaluate our performance for the year. However, if investors evaluate the performance of the core business, excluding omni up from both periods and excluding the transitory COVID-19 relief.
Captisol material sales youll see that the current core ligand business grew nicely over 2021, driven by particularly strong growth on the royalty line.
Turning now to some details on the rest of the partnered programs. Our portfolio now has about 25 programs in the commercial stage of which 15 are royalty bearing assets of those we expect six royalty streams to contribute the vast majority of our.
2023 royalty revenue and those are controllers, even MELA release tear paratype, new Michelle and vaccine events.
I'll cover a few key points on these before turning to the remaining development stage portfolio.
Kyprolis is marketed by Amgen and the majority of the countries around the world.
In Japan and by Beijing in China.
This is an important drug for treating multiple myeloma and reported over $1 3 billion in global sales in 2022.
With over $30 million of royalties to ligand Kyprolis was our largest royalty contributor in 2022, and we forecast the same dmitry for 2023.
<unk> marketed by jazz is a recombinant irwin or linear asparaginase used for component of a multi agent chemotherapy regimen for the treatment of children children and adults with al or LVL.
This product continues to do well in the market.
That was historically constrained by supply issues for the previous standard of care product in Q3 of 2022 relates to reach $73 5 million in sales and we look forward to jazz is Q4 commercial report later this quarter.
Bakken events is a 15 billion pneumococcal vaccine utilizing <unk> <unk> hundred 97 vaccine carrier protein produced using the Pelican expression technology platform.
Merck recently launched back in advance in the pediatric population, which is the largest portion of the market.
And the recently reported Q4 earnings Merck announced a $138 million in vaccine event sales, while Mark noted that a large portion of the sales were due to stocking orders in the U S. We do that these cells are an encouraging sign of the expected demand for this vaccine.
Turning to the development stage programs in 2022, Corona announced positive topline results from both of its phase III enhance trials evaluating <unk> for the treatment of COPD trial successfully met primary and secondary endpoints evaluating lung function symptoms and quality of life measures ligand earns a low single.
<unk> royalty on sales and should should the drug be approved.
And commercialized.
COPD is a multibillion dollar category and essentially represents the first new mechanism of action in many years.
<unk> plans to submit an NDA to the FDA in the first half of 2023.
Also no van submitted an NDA to the FDA in January for <unk> gel for the topical treatment of molluscum.
<unk> received a 7% to 10% royalty on the program as well as an approval and commercial milestones nobody unexpected <unk> date for sometime in early 2024.
Other upcoming key events include data from Viking on its phase <unk> Nash program, which is expected in the next few months as well as data from Perl Vela in three separate rare disease indications on your drug Q2, one.
Phase III data in Pachyonychia congenital is expected mid year phase II data in <unk> syndrome is expected in Q2, this year and phase II data and Microsystems lymphatic milk now formations is expected in March.
That concludes my comments on portfolio and with that I'll turn the call back over to the operator and open the line for questions.
At this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad.
And your first question comes from the line of Joe <unk> from H C. Wainwright. Your line is open.
Hey, guys. Good afternoon. Thanks for taking the question and thanks for all the updates so two things I want to focus on so first Todd.
You talked about making the company leaner and Tahoe, you talked about R&D line reduction so I am curious since you've taken over where do you feel you stand in the continuum of.
Not necessarily cutting costs, but optimizing ligand.
<unk> and personnel.
Yeah.
Yes, I think there will be we're reviewing that Joe continuously.
We're looking at things that contribute directly to our mid to near term financial profile, that's our emphasis.
And so that constantly requires scrutiny I can't share any specific plans right now, but we will continue to focus on expense management very carefully as you can see from Tom's comments, we've already made some strides in that arena.
Got it no. That's helpful. Thanks, and then the second question is I guess with regard to the Captisol franchise.
I guess two parts a year.
Your overall commitment to the program.
Excluding.
For Rem density our purposes, and also getting a sense of what the mix how the mix has been evolving as of late with regard to say inbound research request versus growing commercial use.
Yes, Thanks, Joe.
Yes so.
On Captisol first off we're very committed to the platform and the technology.
It's been a key component of <unk> for 12 years now.
And we see it as a key component going forward for a long time.
Yes.
Yeah, you asked a bit about the cap sell platform and it's used for under severe obviously.
We are reporting our earnings separate from.
That and excluding the capsule for Covid related sales and earnings from our adjusted numbers and guidance.
But we are still prepared to deliver on that.
As folks remember, we made a significant capital investment in 2020.
And.
That all of that equipment and the capacity that we created for that has been.
Put in place and still generally speaking exists a lot of the key components that were needed to be able to address real time demand.
Any sort of wave of pandemic or a need for capsule came up are still in place.
And then similarly, the rest of the franchise. The other 70 to 100 customers that order capsule every year.
The.
The improvements benefit them as well.
Through faster turnover times, and more efficient manufacturing and so.
All of that still is in place and we're still really excited about the business.
Perfect I appreciate all the comments guys looking forward to an exciting 2023.
Thanks, Jeff.
Your next question comes from the line of Larry Solow from CJS Securities. Your line is open.
Great.
Congrats on a really nice year, 48% royalty growth or high 40 is very impressive.
Royalty line itself for 'twenty, three and the outlook.
Kind of flat basically Ryan if you add back whatever a couple of two or $3 million gift for as far as I'm 10, if it kind of comes down the middle of the analyst estimates.
So is.
<unk> also had a good year in 2002, a 14% growth.
Obviously, youre Pelican a lot of those numbers are.
<unk> royalties are touched strong years, so one of those backing off a little bit what's sort of the.
Reasons for a flattish outlook in 'twenty three.
Yes, Thanks, Larry.
I think a couple of things are contributing to what what you're commenting on first off Q4 ended incredibly strong for a couple of products that.
Make the comp if you will year over year.
I will look a lot.
No.
More muted than it might have compared to say our original guidance when we gave it.
A month or three months ago or so.
But second the one.
One product.
Our guidance incorporates right now that.
Probably fits the description of what Youre looking for is tariff maritime Terry.
<unk> had a real nice year in 2022.
As we mentioned last year mid year was sort of when we expected competition for that as investors. Note. Currently are Albert <unk> version of <unk> that was created under the Pelican expression technology.
Is the only alternative to Eli Lilly's for Teo that's on the market. There are two other competitors that.
Have pending andas or similar filings for their versions of Terra paratype.
And then on file for a very long time at FDA, but at any moment, we could see competition emerge from the.
From those folks.
The dynamics in the market could change there.
There are several ways that that could play out obviously.
One or any one of us could could get a.
Therapeutically equivalent rating or a <unk> rating as we've been calling it.
One drug being sort of a preferred generic versus the others.
Or all three of us could be on an equal playing field or only one of the other competitors could get improved or noncore.
I think it's fair to say that if non get approved we would expect.
Some upside to our royalty expectations for tear paratype.
But if competition does emerge and depending on how it emerges that may.
Change our royalty expectations, both up or.
Within our range staying within our range at or going on.
And then can you just maybe give a little more flavor just are a little more color just on what the tariff maritime royalties were this year or ballpark on what they were and sort of what you think what your assumption youre, making in 'twenty three.
Yes sure.
Yes.
Youll see in the K when we file next week.
But the first three months of the year were about $12 million of tear paratype royalty.
And then there was another three or so a little bit more than that that we booked this quarter.
So we ended up just over 15 in terms of royalty for tariff maritime this year.
Assuming relatively flat, maybe even a little bit of a decline next year.
I'll sort of Annualizing, the Q4 number around three five or so.
Okay Alright.
Okay Alright.
The color and then just just one quickly on just on <unk>.
Maybe <unk> is the wanted to ask to answer this question, but just in terms of the <unk>.
The box warning.
Some of the restrictions.
And you mentioned you alluded to you kind of mentioned I guess more confirmatory data on kidney slowing up can you progression hopefully shown in the data that comes out of Q4, but.
With the potential change in the label would that also include.
Sort of modification on this box warning or is that something that might.
Be there for a little while longer and as data.
I feel like that was expected, but is that a hindrance I guess that will be viewed as a hindrance for sales initially I'm sure to some extent if have you any commentary on that would be great. Thanks.
Thanks, Yes.
Yes so.
As folks know.
There the approval first of our sinton so far it came with a rems program in.
Monitoring requirements.
The label called for monthly monitoring of liver enzymes and for the first 12 months and then quarterly monitoring thereafter.
The label also included.
A target of.
Certain creatinine levels.
That was.
One five.
First as some of the trial data and others that was run closer to one.
The expectation.
Essentially we don't have any insight that's not publicly disclosed first off just so investors are true or not.
But.
Just facing on the comments from <unk> on their call.
And reading some of the label data and others. It seems that there's a likelihood that the.
Creatinine levels, our adjusted post the full data readout and then as over time.
The safety is seeing monthly more monitoring that the full time.
Long term.
Monitoring could be.
<unk> reduced or shortened.
What that generally means to us though is that.
All of that was largely expected for the accelerated approval.
And that.
As we as Teva is addressed and we've said before.
We don't have significant expectations for <unk> in the first year.
It's just a couple of million, adding into a royalty lines.
Even though they are planning to launch next week.
When we originally factoring in the launch in Q3.
But.
We'll just have to see how the market develops over over time with both the data as it reports out and then the safety monitoring on the Rems programs.
Got it thanks, Matt I appreciate it.
Thanks, Sir.
And again, if you'd like to ask a question Thats Star one on your telephone keypad. Your next question comes from the line of Matt Hewitt from Craig Hallum Capital Group. Your line is open.
Good afternoon, and thank you for taking the questions maybe the first one up on <unk>.
With a potential EMA approval would that trigger another milestone.
Yeah. Thanks.
Thanks for that yes, there is another milestone.
It's it's an itunes almost a $1 million.
I'm, sorry, I missed that.
Sorry, it's up I think $2 $7 million right around there.
Oh got it okay, great. Thank you and then as we look at the the Captisol gross margin.
Obviously utilization of that capacity is a key driver but are there any are there any other steps that you could take to you either helped goose that gross margin or maybe contract out some of that capacity to anything that could raise that that number.
Yes, yes, good question Matt.
As folks are.
Thinking about our cap saw gross margins.
They're probably thinking back to a few years ago pre pandemic when our margins on caps that were more in the seventies.
Type range a couple of things have happened since then that impact the margins.
The one that is probably most relevant is the expansion we made.
That I referenced.
Those costs are being amortized through.
Through the inventory that we create using the new machines and new process.
And so while margins appear lower its actually.
Some of it is noncash, meaning we spent the cash back in 2020 and were spreading the expense of that tied to the inventory.
Flows through the P&L as we as we sell it through.
So from a cash standpoint margins are higher than that mid 60%. If we were talking about the other.
The thing is mix shift year to year is definitely something that changes.
We've said in the past at some of our margins on capsule are very low and some are high depends.
It depends on both weather.
The product that the partner is fine.
We make various versions of Captisol.
So the the.
The use whether they are buying it for research purposes or for commercial purposes or clinical purposes, So margin thoughts around for all of those things.
We're in a period right now where some of the lower margin.
Capsule is higher volume than some of the.
Higher margin cap seller so.
Those two things the noncash portion in the mix or what's kind of keeping it at that mid $60 level for now.
Got it and then maybe one last question regarding <unk>.
The optimization of.
Head count or employees.
Yes.
How do you risk.
I'm just trying to dig into this on the fly but.
As you look to optimize the people are around the organization is there any risk that you use.
A couple of approvals or you get.
A couple of partnered programs that progressing maybe faster than anticipated and youre almost kind of behind the gun as far as having the people that you need to manage the organization or do you feel like you've got the right number of people and Youre kind of looking out six to 12 months and making sure that you're always kind of staying ahead of the game.
Thanks.
Yes, its the latter I think we are.
I think very focused on what we need and being able to execute with the partners on the technology platforms, and it's just about being as lean and mean as possible and make sure that we have what we need to know more so we're being pretty careful about that and trying to draw the lines in the right places.
Understood. Thank you.
And this concludes our question and answer session I will turn the call back over to Mr. Todd Davis for some final closing remarks.
Yeah.
Yes.
Thank you everyone for tuning into law against fourth quarter earnings call, we will be attending investor conferences in the coming weeks, including the Roth Conference in Dana point and Barclays in Miami, We hope to meet you in person at these events. Thanks, again and have a nice afternoon.
This concludes today's conference call. Thank you for your participation you may now disconnect.
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