Q2 2023 LumiraDx Limited Earnings Call
Good day, and thank you for standing by.
Welcome to the mirrors Dx second quarter 2023 earnings conference call. At this time, all participants are in a listen only mode. After the speaker's presentation there'll be a question and answer session to ask a question. During the session you will need to press star one on your telephone you will then hear an automated message advising your hand this race.
To withdraw your question. Please press star one again, please be advised that today's conference is being recorded I would now like to hand, the conference over to your speaker today, Melissa Garcia Vice President corporate counsel. Please begin.
Hello, everyone and welcome to today's call to discuss mirrored the active second quarter 2023 financial results issued earlier today.
Joining us early married Dx as chairman and CEO , Ron Zwanziger, and Chief Financial Officer Dorian Leblanc.
The press release announcing our financial results is posted on the Investor Relations section of the company's website at lumi.
Iridex dotcom.
Before we begin I would like to caution listeners that any statements. We make today other than historical facts are forward looking statements made pursuant to the safe Harbor provisions of the private Securities Litigation Reform Act of 1995.
Please be aware that all such forward looking statements involve risks and uncertainties such as those detailed in our annual report on form 20-F for the year ended December 31, 2022, which was filed with the S. D. C. On may 1st 2023 and in other filings that we make with the SEC.
Any forward looking statements that we make must be considered in light of these factors actual results may vary materially.
Also during today's call, we may refer to certain non <unk> financial measures.
I have first financial measures should not be considered in isolation from or as a substitute for financial information presented in compliance with I F. R. S.
There is a schedule showing a reconciliation of these non I O R. S financial measures in our press release issued earlier today, which can be found on our website at <unk> Dot com.
I will now turn the call over to Ron Zwanziger for opening remarks, and a general business update we will then provide a financial update before answering questions Ron.
Thanks Melissa.
Good morning, everyone and thank you for joining our second quarter results call.
In the United States. During Q2, we strategically positioned our north American business to take advantage of the upcoming respiratory season in the short term, while also focusing on expanding our testing menu for both short term and long term growth.
We have three key updates first we extended our testing program with CBS to encompass numerous pharmacies across the U S. Complementing our existing partnership with CBS minute credits, which has been in place since 2020, the expansion Leverages, our current installed instrument base, allowing for strong operating margin and testing volumes than these.
New pharmacy sites during the upcoming respiratory season.
Second I'll cover flu combo test has been submitted to the FDA emergency use authorization EUA as part of the NIH is independent Testament test assessment program I tapped having already launched successfully in over 25 countries globally, obtaining the UA protests should be valuable should be a valuable addition to our U S testing portfolio.
We're actively engaged in discussions regarding their current state to survive application.
Third as reported in our recent press release, we're excited to report our submission of <unk>.
But <unk> complication to the FDA for clearance of our five minute covered ultra product the innovative ultra test chip design enables higher some.
Volumes enhancing detection levels and reaction times for more precise result, this marks a significant milestone for <unk> as we work to expand the markets for our Sars Covid two ultra test the receipt of a five 10-K approval from the FDA could also pave the way for expanding our testing menu in the U S.
The uniform on a unified platform.
In Europe , our folks.
This remains on the acceptance and expansions of our non covered portfolio.
Non covered platform test volumes, excluding excluding seasonally seasonal respiratory products increased 50% sequentially, 26% of our customers purchased more than three assays during the second quarter and 23 vessels, 17% in the first quarter of 2018, highlighting the positive impact of our menu.
Expansion.
A specific example of a unique anti pro BNP test following the January 23 launch of R&D per Bmt's Tech Q2 was dedicated to showcasing its lab comparable performance and user friendliness to cliffs nations and key opinion leaders by offering the only finger stick.
<unk> at the point of care, we're able to gain access to key accounts for evaluation.
Our efforts have been supported by peer reviewed studies, including those from the divestiture of Epsilon and the European generative heart failure, emphasizing the clinical and economic benefits of widespread and team.
BNP testing in primary care settings. The studies confirm the excellent performance of our test the benefits of room temperature storage. The utility at the same test strip and message first samples of whole venous blood capillary blood and plasma and the short turnaround.
The test 12 minutes.
Published studies are a welcome addition to the body of evidence showcasing other barging comparable performance of our tests.
At the point of care setting, we remain committed to transforming healthcare by enabling early heart failure diagnosis in the community and plan to expand our approach globally.
Further with regards 20 propane.
Our collaborative work with Medtronic continues to develop positively a follow up event was run at Manchester in July which continued to show excellent results and a direct impact for individuals being immediately referred for further testing huge elevated results.
As a result of our second successful event free time to support further events with Medtronic in 'twenty three I hadn't have spun this concept out into other mobile settings.
One of which is a workplace benefit program being run an island in the fall of 'twenty three with expanded scope it will not only be heart health check checks.
Checks with RMT Pro BNP test, but will also support diabetes screening with our HBA, one seat test, which highlights our multi menu approach we plan to further expand on this model globally and an overall effort to broader general access to needed health checks.
And an overall effort to transform how health care is delivered within the community.
Our CRP tests has made significant strides, particularly in community based settings like virtual awards in the UK partnerships like NHS from the health have demonstrated the test value in real time decision, making for antibiotic treatment, resulting in improved patient safety.
Experience and cost savings. The aim was to support real time decision, making on the need for antibiotic treatment and frail acutely unwell patients in an effort to avoid hospital admission, it's achievable and desirable if achievable rather than waiting several hours for lab results.
This customer described our platform a small portable battery operated robust and simple to use with room temperature reagent storage ideal for community and mobile testing that.
Our clinical and operational benefits were studied across various patients and the results were very positive and 50% of patients tested the <unk> test to improve the safety of care and help to avoid the need for escalation to hospital care at a cost savings of up to 3914 pounds per patient.
If adopted more broadly these benefits could lead to substantial substantial savings for health care systems.
We continue to deliver on our multiple.
Assay menu platform offering as an example, we recently started working with a leading operator of care homes in Austria. They were looking for a more efficient way to test their patients at the bedside instead of sending them to hospitals hospital immediately saving money and reducing patient stress. We're initially starting to work with them and the piano region with 16 instruments that car.
<unk> focused on CRP D dimer, and our board are broad our respiratory portfolio and have indicated that in the future expansion.
They may expand to our entire asset portfolio and May also expand geographically into additional regions throughout Austria, where they have other customer locations. This is an excellent example of how easy it can be to transform community based health care with the La Mer Dx platform. When one single portal in spend can have a major positive clinical impact.
In nearly any setting.
Coming into that into this year's respiratory season, but believe we are well placed strategically to continue to grow the CRP business as a broader part of our spirits portfolio as the only platform available today at the point of care setting with CRP as well as fluent Cabot tests, we provided turnkey.
Solution for important clinical pathways that are aimed at curbing antimicrobial resistance by differentiating between viral and bacterial infections.
For example, the UK primary care respiratory society recommends algorithms.
They have developed to rule out COVID-19, and flu taking other symptoms into account and using the point of catch CRP test if the prescriber feels antibiotics unnecessary.
<unk> has the only platform at the point of care setting that can fulfill the entire algorithm with just one instrument, making both the patient and clinician experience more efficient and desirable to the alternatives.
Which which which would not require the multiple POC instruments or having to wait hours for laboratory results.
On the commercial side.
We have expanded our reach and to increase sales impact by entering into a distribution agreement with axon labs, a major player in the industry for Germany, and Switzerland. This distributor has already placed an initial order instruments, an assay that tests and aims to start to rollout in these countries. Shortly we also plan to appoint an additional distributor additional distributors.
Other regions to increase sales reach and local customer support.
The benefits of a broader menu are also felt in Africa and Africa, we've been working with key stakeholders to drive uptake of non Covid testing.
Our 5000, plus instruments installed with the Gates Foundation during the pandemic. We've now started shipping RH Bay, one C test to various African countries as well as D. Dimer test to Zimbabwe D. Dimer has historically been under utilized as a marker of blood clotting in Africa.
Features of the Merit Dx platform enabled access to this important test.
These tests Osha show utility in high risk TB and HIV population.
This reflects the overall benefit of the platform for tests being deployed in African countries, where they have traditionally not been.
Tested in the community.
We note that globally traditional health care models are being impacted in hospital setting due to funding and stopping restrictions and as a result of innovations like our portable point of care instruments are needed to allow testing in the community as we continue to innovate and expand our poultry portfolio mirrored the extra remains dedicated to transforming healthcare delivery.
Worldwide and contributing to such impactful changed now Dorian will further discuss our financial performance in the first quarter Dorian.
Thanks, Ron quarterly.
Quarterly revenues for Q2 were 21 million $9 2 million or 44% of total revenues were from non Covid specific solutions, marking our highest quarter for our non COVID-19 revenues.
These revenues included $4 4 million from our <unk> technologies, and $4 8 million from our distribution business.
Total adjusted gross margins for the quarter were a loss of $6 6 million adjusted gross margins exclude net depreciation amortization stock based compensation and restructuring charges.
The decline in gross margin from Q1 was largely due to the new placement of more than 1500 instruments in the U S primarily with our retail partner to build testing capacity for the upcoming respiratory season.
The full cost of these instrument placements were taken as a charge within Q2.
Similar to Q1, the fixed cost base of our prior manufacturing investments pressure overall margins at our current revenues.
Do anticipate our significant capacity and low variable costs will enable seasonal revenues from the upcoming respiratory season debit strong contribution margin to our gross margin and to our operating cash flows.
As we approach the upcoming respiratory season, we have seen customer preference shift to our multipack flex solutions for fluid Covid overcome COVID-19 only testing.
We have seen the majority of our fast labs revenues migrate to our flu COVID-19 offering as a result, we did take further inventory reserves on raw materials related to Covid specific tests in the period.
Total inventory reserves for test strips insert returns instrument components in SaaS slabs raw materials in the quarter were $3 8 million with SaaS labs, Covid inventory reserves contributing $2 4 million.
Excluding instrument placements in these inventory reserves adjusted gross margins would've been approximately 10%.
Our restructuring programs have reduced our operating expenses sequentially over the last five consecutive quarters since we exited the omnicom wave and transitioned to a debit COVID-19.
Since Q3 2022, when we initiated a cost reduction programs, we have decreased our annualized cost base by more than $100 million in line with our prior guidance.
Our second quarter adjusted R&D expenses were $14 3 million compared to $14 8 million in Q1 of this year and compared to $42 8 million in Q2 2022.
Our second quarter adjusted SG&A expenses were $17 6 million compared to $19 million in Q1 and $32 million in Q2 of 2022.
The adjusted operating expense reductions from Q1 'twenty three to Q2 'twenty three are primarily related to decreased wages and other employee expenses.
Adjusted operating expenses exclude depreciation amortization stock based compensation and restructuring charges.
We incurred $2 9 million of restructuring costs in the quarter as we finalized most of our latest cost reduction program in June and anticipate additional cost savings in Q3 with the full benefit of these changes.
At June 32023, our cash balance was $25 3 million.
On a cash basis, our quarterly cash interest paid reflect the payment of both the Q1 and Q2 cash interest on our senior debt within the second quarter.
On July 20th 2023, we executed a ninth amendment to the loan agreement with our senior lender, which included an agreement to increase the loan facility with two new tranches of senior debt.
On July 21, we drew down the tranche B funding from the amendment for $15 million.
We anticipate dry down tranche C funding of $16 million before the end of August as we continue to manage our liquidity position.
We will now pause for the operator gathered any questions.
Operator.
Okay.
Thank you.
As a reminder to ask a question you will need to press star one on your telephone to withdraw your question. Please press star one again, please wait for your name to be announced please standby will compile the Q&A roster.
One moment for your first question.
First question comes from the line of Matt <unk> with Goldman Sachs. Your line is now open.
Hi, good morning, Thanks for taking my questions, maybe the first one.
The <unk> submission for the flu Kobo combo in the U S market could you just give us a sense for timing do you think that.
Would be ready for the respiratory season in the U S. And you had mentioned some conversations youre, having with them just how are those going in any kind of color on timing would be helpful.
Well, it's always a tricky question that certainly the intent.
Of the folks were dealing with it at the <unk> tap.
And so that is the expectation but of course, they can never be assurance of that but that is the expectation that we will we will.
I have it in time for the.
For the quarter.
Certainly we've got customers lined up on that basis.
Got it or maybe just two quick follow ups. One you had mentioned the press release that.
Divestiture of the INR Star.
Business was there any kind of cash realized from that that you guys have disclosed.
Doran.
No no cash.
We've disclosed that we realize for that transition.
Business that is monitoring patients on warfarin.
And the software helps.
To provide the.
Algorithm for the dosing, what we've seen with warfarin patient population declining that business was in decline.
Require some significant investment to maintain the software.
So it was more of an avoidance of future investment.
To realize proceeds.
Got it and just my last question the relationship with Cvs, which sounds like its going well with some of the additional placements could you just maybe talk about sort of your expectations for timing of rollout.
Assume a lot of that is to capture the respiratory season.
In Q4, but maybe just talk about the expansion of that relationship.
What it could mean from a non COVID-19 standpoint, as we kind of go into the end of this year and into early 'twenty four.
Well, well well, probably it's best to remind remind you that we.
We had a relationship with Cvs.
Proceeded.
The pandemic, where we had a plan with them and many of the product selection.
The order in which we're launching the non Covid test was agreed with them well before.
For the.
Pandemic then of course that was this long hiatus and now we're coming back to it. So we're really sort of simply evolving back to what was originally intended pre pandemic and of course in the short term that means.
The respiratory.
First question you asked a few AMB.
And then of course, there's other tests that will be will be coming through.
Both respiratory and non respiratory so theres a whole program.
Of test that we expect.
To go into that relationship now I don't know if you have sort of picked it up but the significance of what what's been going on in the.
And in the second quarter and the expansion of the relationship is that we've taken it beyond the minute clinic, where traditionally.
The tests are not done in the regular pharmacies, which do not have a minute clinic and so we've had a large number of instruments now go into the regular pharmacy. So it's quite a change in behavior.
We think that that bodes really well for the future this quite a lot of tests.
Which can be.
I needed in the community, where you don't want to force people to go.
Two just the minute clinics, which are crudely speaking every 10th Cvs, where you want them to be able to to have more reach into gone to more store sets. So some.
It's substantially quite significant.
Change that we've had positive change.
Great Thanks, Ron and Don I appreciate the questions.
Thank you.
One moment for our next question please.
Our next question comes from the line of Jeffrey Cohen with Ladenburg. Your line is now open.
Hey, good morning, Ron and jewelry in a couple of questions for Maryland, I guess, firstly Ron could.
Could you expand upon your commentary on Medtronic can talk about pulse checks with us a little deeper as far as.
What specific test and what channels as far as coagulation diabetes cardiovascular.
Sure well the issue with Medtronic is that.
They have a program into the community to try and screen.
Our people with with heart failure and of course, there is no.
Our community base finger stick.
Anti pro BNP test so when they have these programs, which.
They have they have them in various forms with the one way or in bump with the zone is a mobile literally goes into the community.
Channel people through.
So as soon as they had about our test that used it and straight away.
The impact was to identify.
Uh huh.
People into into three groups.
And this is repeated itself in the second test. So you referred to diabetes, but this particular program it started off at the moment.
It's.
Anti purpose, but it could expand so so even in these early results. They immediately showed that.
There's people walking out there.
That.
So severe.
Theyre going to Decompensate and.
We've had.
An initial person sent directly from from the testing to the emergency room.
And then there were a bunch of other people which were sent to.
The primary cares.
Physician, because it was elevated but not yet in the critical state.
And then of course, Fortunately as everyone else so.
It showed the enormous benefit of actually.
Being able to triage patients much earlier in the community and obviously, therefore reduce the hospitalization.
<unk>.
Or in the case of the person the women get to get the best NIM before they really deteriorate. So.
So the point about the.
This program that that running is it shows how you can deal with congestive heart failure far more effectively.
Then you are now and I should say the other countries that we're working with.
Going down the same path.
And quite a number of countries and there's a lot of key opinion leaders.
Everywhere, that's why we'd dwelt upon it on the prepared remarks, where.
And a host of different countries.
They can see how having a finger stick test in the community can do just what we've already identified so early on in this.
Graham.
With Medtronic, so it really shows the power of.
Our platform.
And Ron is Medtronic driving this process and are they are they distributor ordering goods from either just starting or distribute this new distribution agreement with Medtronic.
Just to be clear, there's no there's no distributions because they have their own product.
In congested pump they have tremendous advantage of catching people early web based on that.
Their own on their end.
Products not test, we just happened to be a mechanism, which allows for early identification earlier identification of of people I'm catching people congestive heart failure.
Much earlier treatment and therefore to avoid but.
Deterioration those folks health and also saving money for the system.
Okay got it and then they piloting this or they're doing this across the.
The U S now.
This is all in Europe , because of where we have the the registration.
We will bring it will obviously bring this product into.
Into the U S. We highlighted on our prepared remarks that we've got our first five 10-K submission.
And then which covers the instrument and the strips and then the future submissions copper and lead the strips and we're obviously going to do flu and flu b, but enterprise is very early in the year and the cycle of tests that we're going to bring into the U S.
Okay perfect. Okay, and then secondly for US if you could just touch upon the benign to non covered with the composition of $4 four technologies and $4 eight distribution as far as the.
The technologies go could you enter distribution goes could you give us a flavor and perhaps call out two or three or four tests that are that are driving that thus far and then what we would expect for the back half as well as any back half commentary on uncovered revenue.
Well, even though it was a.
Almost a non flu season quarter Q2.
We had a lot of.
Flu actually be testing in the quarter, but during maybe you can answer the question.
Yes, we did so.
Just about half of that is still the respiratory testing within the $4 four of the La <unk> X technologies, including a large portion for the SaaS labs business as we mentioned that transitioning to.
The majority of that business being fluid COVID-19 capsule.
And on the <unk>.
On the distribution revenues.
You may recall, that's revenue is for products that we don't manufacture so primarily outside of the U S and.
In Latin America, and Europe for distribution agreements that we have.
And our sales organizations.
Okay got it that does it for us thanks for taking my questions.
Thank you one moment for our next question. Please.
This question comes from the line of Andrew Cooper with Raymond James Your line is now open.
Hey, guys. Thanks for the questions, maybe first just a little bit more detail. If you could give us some of the progress that's been made through the quarter in terms of staffing for Brian and then I think you had commented you expect it to be.
Struck later this year and then.
Ron I think you said potentially kind of on the market at least in trial phase.
With your comment in the UK.
What has happened since the last update and anything else you can offer there would be great.
Yes.
Well actually both so so in terms of new products, whether its component or.
Our molecular strep.
Molecular strep.
We expect to probably get out.
In the market.
In the fourth quarter.
In the UK.
We're also.
Looking at the various clinical trials either try BTR in fact NK.
Proponent continues to move.
Quite well and I think where previous comment was that we expect we might be able to get it towards the very end of the year and that's still the case.
Okay. That's helpful and then.
In terms of the until I don't specifically talk about in terms of self registration of energy.
Okay.
And then maybe for Dorian.
Commentary about some of the run rate on expenses can.
Can you give us a flavor for sort of what is still to be wrapping back here in <unk> that wasn't fully baked in in <unk> and <unk> and kind of from the trajectory of what we should expect there and then should we think that <unk> gross margins look more similar to that 10% type level that you called out as sort of a normalized equity instrument.
Sure.
Inventory reserve piece or more like what we saw in Q2 just now.
Yes, so I'll take the gross margin piece first.
Does depend heavily on what happens with.
The start of the respiratory season in around the timing of a.
A potential approval for the fluid COVID-19 tests through what's happened in all states.
So obviously that high value high margin respiratory product coming through in.
At the end of the quarter could have a material impact on on where we stand.
Absent a strong contribution from that then then yes your comments around the.
The 10% level at these revenue levels.
Mark.
On the cost savings most of the time.
I was just going to say so so we shouldn't expect more normalized levels from that kind of instrument dragged perspective, and then you feel like the inventory piece is pretty well.
Reflecting the last write offs.
We would expect that yes.
Okay. Thank you and then sorry.
On the on the on the expenses, yes. So we did incur the close to $3 million of restructuring charges in the quarter.
And that's.
Largely around severance or reduction in the workforce most of those employees left in May June .
And so there is the expense savings.
Other on employee costs in the third quarter, but as we had mentioned previously some of that will be offset by an increase in U S clinical and regulatory expenses.
So we will get some additional module savings in Q3.
But as we start the work on the U S. Clinical's on the respiratory product set on the community based products to bring the European portfolio went to the U S. We will be using some of that cost savings for the clinical trial costs.
Okay, Great I will stop there thanks for the time.
Thank you.
One moment for our next question as a reminder to ask a question you will need to press star one on one.
Our next question comes from the line of Mark Massaro with <unk>. Your line is now open.
Hey, guys. Thank you for the questions.
Ron The first question is for you.
I'm curious as to your degree of confidence around the duration of the NIH I Tap program. Obviously, you submitted your Covid ultra tests.
As a 500 10-K, but youre COVID-19 flu is the EUA through the tap I'm just curious if.
If you have visibility how long the EUA pathway through <unk> will be available as opposed to submitting regular way 510 case and any thoughts on timing expectations for the <unk>.
Cobot fluid test.
Well on your first question.
There has been tremendous engagement and that continues to be.
Probably we don't know this for sure, but probably because ours is the only.
Multiplex high performance.
Test.
Available and so we suspect that the reason.
And of course, there's a lot of anxiety around because of the of the flu season. So.
Yes, so so.
So the.
Tap program continued to interact with us even though that in general there is obviously, a sharp reduction in the U S. But.
For this particular application.
It still seems to be there and so hence our comments before that we're hoping.
When there is no assurance, but we're hoping to be able to get it in time for the flu season, and we're working with our customers were being patient.
The situation.
That to happen.
Your other comment your other question about our first five 10-K, I think that will.
Follow the regular regular path.
It's always very hard to estimate.
Five 10-K, particularly the first one.
One on a new platform, where youre submitting and the review process includes.
A great deal of focus both on the instrument as well as the particular stripping question. So it's a much it's a much greater amount of work than the second.
Tests, you submit but.
We submitted a very detailed and complete.
A complete package and so I think that there'll be a back and forth.
With the FDA and I think.
I think the optimistic optimistic view might be before the end of the year.
Otherwise into next year, but I think it's not far away not too far away.
Okay, Great and then maybe one for you Dorian you are now.
Tracking low $20 million in the first two quarters of the year Q.
Q3 is typically seasonally lighter.
I don't think I heard your guide for Q3, but can you give us a sense for.
Ballpark do you think it will be down a little bit sequentially, primarily due to seasonality or are there other offsets that could keep you flattish.
Well, it's a tricky question to answer.
Mark because.
Such a material impact around the timing of the recovered approval potentially in the U S and customers waiting on purchases.
On the timing of that on whether they will utilize the 12 minute.
Couple of allergen test in the U S or the fluid Covid test.
So tricky to guide to exactly what Q3 will.
Well, then just because of such a material impact from the timing.
Outside of that we continue to see the the non covered portfolio grow.
As we talk to the number of customers that are taking multiple tests.
Continuing to grow quarter on quarter, we see that trend.
It will carry us through the rest of the year.
The menu expansion really plays well in Europe .
And that will drive the non respiratory growth.
Cause respiratory is such a big contributor hard to guide with the uncertainty around timing.
Okay, and then on the balance sheet Dorian I think you expect to draw a $16 million.
By the end of next week I think that'll take you to a $41 million of cash is that cash sufficient in your view to get through the end of September and just maybe how should we think about cash runway.
Yeah, absolutely the one other piece maybe to think about it on cash runway as we do have a number of receivables on the books not not trade receivables, but particularly the tax receivables. So we have $25 2 million at the end of Q2 and tax receivables largely from U K.
Tax credits.
We do anticipate that coming through before the end of the year and contributing significantly to liquidity.
Then we'll work on.
Where we are with Pharmacon in future amendments and working through the overall liquidity for the fourth quarter, but the draw of $60 million will certainly take us through September .
Okay last question for me.
Can you maybe explain what the the measurements of the covenants and the ninth Amendment.
Hi.
What that pertains to.
I'm trying to get a sense for some of the details around the statement about the.
The measurement there.
So right now during the term of the ninth amendment, the only covenant that applies at the minimum liquidity covenant of $5 million. We have no. Other covenants that are in effect when the ninth amendment ends.
Then we would return to the original revenue covenants that had us.
There were set during the pandemic.
And therefore outdated would need to be negotiated with a lender.
Okay, perfect Alright, guys Thats it for me. Thank you.
Mark I'll just add.
Two to the first question about respiratory in revenue so.
You made the comment that Q3 tends to be the week.
Yeah.
Interest rate trends to meet the weaker one, but actually Q2 tenths to often be the weaker one than Q3, because Q3, sometimes gets the initial stocking orders for the fourth quarter flu season.
But obviously because of the <unk> program, we don't know, where we stand with the U S that complicates matters.
But then there's also the general complication of.
The flu season in Europe , and Japan, as well, making.
Aching.
Any commentary, particularly particularly tricky.
Yes that makes sense I appreciate all color.
Okay.
Thank you.
I am currently showing no further questions at this time I'd like to turn the conference back to Mr. Ron Zwanziger for closing remarks.
Okay. Thanks.
So our transition.
Our non covered product portfolio continues to progress.
Especially with the commercial launches of the <unk> test and the <unk> test on a platform customer.
Responses continue to be positive supported by external clinical validation.
So again, bringing together multiple assays on a single easy to use instrument with laboratory equivalent performance and a low cost of ownership is enabling a transformation and community based care.
Now in parallel to the focus on our business and then test expansion. We continue to work with various strategic advisors on the previously disclosed strategic review of our business.
With the support of our senior lender, which we are engaged in discussions with them about the term of the terms of the loan agreement as amended to date, including the covenants and the ninth mentioned, which is scheduled to be measured on September the first.
While it would be no guarantees about the outcome of the strategic review process or our ability to renegotiate terms of the loan agreement with our senior lender, we remain committed to preserving and protecting the value of our business. While we continue to aim to deliver a product expansion into the U S. In commercial growth of our approved test internationally.
Thank you for your time and for your support of <unk>.
Alright.
This concludes today's conference call. Thank you for your participation you may now disconnect everyone have a wonderful day.
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