Q3 2023 Myomo Inc Earnings Call

Speaker 1: Hello and welcome to the MyOMO third quarter 2023 earnings conference call. All participants will be in listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions.

Hello, and welcome to the my almost third quarter 2023 earnings Conference call. All participants will be in listen only mode should you need assistance. Please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions to ask a question you May Press Star then.

One on your Touchtone phone. Please note. This event is being recorded I would like now to turn the conference over to Kim Gala debts. Please go ahead.

Speaker 1: Please note this event is being recorded. I would like now to turn the conference over to Kim Golodets. Please go ahead.

Speaker 2: Thank you, operator, and good afternoon, everyone. This is Kim Galadez with LHA. Welcome to the Myomo third quarter 2023 conference call.

Thank you operator, and good afternoon, everyone. This is Kim gala that's L. H a welcome to the Mitel now third quarter 2023 conference call.

Speaker 2: Earlier this afternoon, Myomo issued a news release announcing financial results for the three and nine months ended September 30, 2023. If you would like to be added to the company's email distribution list to receive future announcements, please register on the company's website at myomo.com or call LHA at 212-838-3777 and speak with Carolyn Curran.

Earlier this afternoon, Miami issued a news release announcing financial results for the three and nine months ended September 32023, if you would like to be added to the company's email distribution list to receive future announcements. Please register on the company's website at <unk> Dot Com I'll call L. A J at 212.

83837, 77 and speak with Carolyn Curran.

Speaker 2: With me on today's call from my Elmo are Paul Godonis, Chief Executive Officer, and Dave Henry, Chief Financial Officer.

With me on todays call are Paul go down this chief Executive Officer, and Dave Henry Chief Financial Officer.

Speaker 2: Before we begin, I'd like to caution listeners that statements made during this conference called by management, other than historical facts, are forward-looking statements. The words anticipate, believe, estimate, expect, intend, guidance, outlook, confidence, target, project, and other similar expressions are typically used to identify such forward-looking statements.

Before we begin I'd like to caution listeners that statements made during this conference call by management other than historical facts are forward looking statements. The words anticipate believe estimate expect intend guidance outlook confidence target project and other similar expressions are typically used to I.

Dental by such forward looking statements.

Speaker 2: These forward-looking statements are not guaranteed the future performance and may involve and are subject to certain risks and uncertainties and other factors that may affect my own business, financial condition and operating results.

These forward looking statements are not guarantees of future performance and may involve and are subject to certain risks and uncertainties and other factors that may affect Myanmar business financial condition and operating results.

Speaker 2: These and additional risks, uncertainties, and other factors are discussed in my almost filings with the Securities and Exchange Commission, including the Form 10-Q for the quarter ended September 30th, 2023, which is expected to be filed soon and subsequent filing.

These and additional risks uncertainties and other factors are discussed in Myanmar filings with the Securities and Exchange Commission, including the Form 10-Q for the quarter ended September 30 of 2023, which is expected to be filed soon and subsequent violence actual outcomes and results may differ materially from what is expressed in or.

Speaker 2: Actual outcomes and results may differ materially from what's expressed in or implied by these third-letting state.

Or implied by these forward looking statements, except as required by law Miami undertakes no obligation to revise or update any forward looking statements to reflect events or circumstances. After the date of this call.

Speaker 2: except as required by law. MyOMO undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this call.

Speaker 2: It is now my pleasure to turn the call over to my almost CEO Paul. Paul, please go ahead.

It is now my pleasure to turn the call over to my amongst CEO Paul Donahue Paul. Please go ahead.

Speaker 3: Thanks, Kim. Good afternoon, everyone, and thanks for joining us. We have a lot of news to cover with you today, starting with our third quarter financial results, and then last week's updates from the Centers for Medicare and Medicaid Services, CMS, about the MyoPro for Patients with Medicare Part D coverage.

Thanks, Kim and good afternoon, everyone and thanks for joining US we have a lot of news to cover with you today, starting with our third quarter financial results and then the last week's updates from the centers for Medicare and Medicaid services CMS about the Micropro for patients with Medicare part D coverage.

Speaker 3: Today we're reporting third quarter financial results featuring more than $5 million in product revenue for the first time, which is up 28% year over year and up 20% sequentially. This included a record quarter of international revenues, which topped $1 million and a quarter for the first time. A tolerance for these companies because

They were reporting third quarter financial results featuring more than $5 million in product revenue for the first time, which is up 28% year over year and up 20% sequentially.

This included a record quarter of international revenues, which topped $1 million in a quarter for the first time.

Speaker 3: Importantly, we are entering the fourth quarter with 1,046 qualified patients in our pipeline and more than $11 million in cash, which gives us optimism about our growth trajectory.

Importantly, we are entering the fourth quarter was 1046 qualified patients in our pipeline and more than $11 million in cash, which gives us optimism about our growth trajectory.

Speaker 3: I'm pleased with these results since they validate the strategic shift and the operational changes we implemented at the beginning of the year.

I'm pleased with these results since they validate the strategic shift and the operational changes we implemented at the beginning of the year we.

Speaker 3: We decided to focus on patient candidates who had insurance coverage by payers with a track record of reimbursing for the Myopro rather than expending a lot of effort to obtain pre-authorizations from other insurance plans.

We decided to focus on patient candidates, who had insurance coverage by payers with a track record of reimbursing for my approach rather than expanding a lot of efforts to obtain preauthorizations from other insurance plans, that's led to a higher authorization rates by payors, including an appeal with some approvals happening within a few days of submission.

Speaker 3: That's led to a higher authorization rate by payers, including on appeal, with some approvals happening within a few days of submission of the medical documentation to the insurance company.

The medical documentation to the insurance company, assuming medical necessity has demonstrated Medicare advantage plans, which cover many of these stroke survivors or seniors age 65, and up must provide coverage if CMS is reimbursing for the device.

Speaker 3: Assuming medical necessities demonstrated, Medicare Advantage plans, which cover many of these stroke survivors who are seniors age 65 and up, must provide coverage if CMS is reimbursing for the device.

Speaker 3: Along with this focus on reliable payers, we reduced our operating expenses by having fewer staff dedicated to reimbursement activity and by cutting our marketing budget by $1 million.

Along with this focus on reliable payors, we reduced our operating expenses by having fewer staff dedicated to reimbursement activity by cutting our marketing budget by $1 million.

Speaker 3: These cost savings, along with the increased revenue we've generated, are namely us to reduce our cash utilization year over year as we work through the timetable of having the Medicare Part B rulemaking and the coverage completed.

These cost savings along with the increased revenue, we generated are namely us to reduce our cash utilization year over year as we work through the timetables, having the Medicare part B rule, making and the coverage completed.

Speaker 3: For a deeper dive into our third quarter, I'll start with the top line. Year over year and sequential growth in product revenues is due to three factors.

For a deeper dive into our third quarter I'll start with the top line year over year and sequential growth in product revenues is due to three factors one the size of the patient pipeline, which was nearly a thousand qualified candidates at the beginning of the quarter. Maybe they were covered by insurance plans that have consistently paid for mile pro in the past.

Speaker 3: One, the size of the patient pipeline, which was nearly a thousand qualified candidates at the beginning of the quarter, meaning they were covered by insurance plans that had consistently paid for Myopro in the past.

Speaker 3: Two, the number of units in our backlog, which represented approximately $7 million in potential revenue upon delivery or collection of payment from the payer. And three, the number of new orders received and filled during the quarter for revenue based on the payer mix, what we call the fill units, which was a record number in the quarter.

Two the number of units in our backlog, which represented approximately $7 million potential revenue upon delivery or collection of payment from the payer.

<unk> the number of new orders received and filled during the quarter for revenue based on the payer mix, what we call the filling units, which was a record number in the quarter.

Speaker 3: During our last quarterly conference call, I was a bit conservative about our revenue forecast because we had limited visibility into how many insurance authorizations we would receive and what the payer mix might be. As it turned out, we had a record 156 authorizations and orders in the third quarter, which is up 20% from the year ago period.

During our last quarterly conference call I was a bit conservative about our revenue forecast because we had limited visibility. It's how many insurance authorizations, we would receive and what the payer mix might be.

As it turned out we had a record of 156 authorizations in orders in the third quarter, which is up 20% from the year ago period.

Speaker 3: and we achieved this growth of the 27% reduction in advertising spent compared with the third quarter of 2022 and a 12% reduction in staff, engaged in reimbursement activities back in January as we focused our efforts on payers with a track record of reimbursing the myelpro.person chefurar statewide 25% reduction in staff, engaged in Maine County vegan emergency service

And we achieved this growth with a 27% reduction in advertising spend compared with the third quarter of 2022, and a 12% reduction in staff engaged in reimbursement activities back in January as we focused our efforts on payers with the track record of reimbursing the mile problem.

And now for the major news updates it was a heck of a week for seniors with Medicare part B fee for service health insurance that CMS issued two publications concerning the my approach race with patients with muscle weakness and paralyzed arms.

Speaker 3: It was a heck of a week for seniors with Medicare Part B, fee-for-service health insurance. As CMS issued two publications concerning the myelprobe race, with patients with muscle weakness and paralyzed arms.

Speaker 3: On November 1st, CMS stated that was reclassifying the myelpro and the brace benefit category. As we had requested in the public meeting in June 2022, instead of the original Durable Medical Equipment's DME rental category. Myelpro product line is custom fabricated for each patient and is designed for long-term home use by Medicare beneficiaries.

On November 1st CMS stated that was reclassifying, the my approach and the brace benefit category as we had requested in the public meeting in June 2022 instead of the original durable medical equipment DNA rental category.

While pro product line is custom fabricated for each patient is designed for long term home use by Medicare beneficiaries.

Speaker 3: In the brace category, the MyoPro will be reimbursed by Medicare on a lump sum basis, which is the way all other payers, Medicare Advantage, the VA, and commercial plans reimburse for our devices effective January 1, 2024. That was good news number one.

In the brake category, the Micropro will be reimbursed by Medicare on a lump sum basis, which is the way all other payors Medicare advantage, the VA and commercial plans reimburse for our devices effective January 1st 2024.

That was good news number one for Medicare beneficiaries.

Speaker 3: Then on Friday, November 3rd, CMS issued the agenda for its upcoming HCPCS public meeting, which included the publication of proposed fees for the 2-mile pro model.

On Friday November 3rd CMS issued the agenda for its upcoming Hick picks public meeting which include the publication of proposed fees for the two mile Pro models.

Speaker 3: The Myopro Model W, which is the elbow wrist orthosis, coded as L8701, the proposed fee is $31,745.

Oprah model W, which is the elbow wrist orthosis coded as L. 80, 701, the proposed fee is $31745.

Speaker 3: For the MyoPro Model G, which is the elbow, wrist, hand orthosis, the proposed fee is $62,457.

So the Micropro model G, which is the elbow wrist handle orthosis proposed fee of $62457.

Speaker 3: These fees are calculated by CMS based on their internal pricing methodology and are consistent with the presentation we made at that June 2022 public hearing.

These fees are calculated by CMS based on their internal pricing methodologies and are consistent with the presentation. We made at the June 22 wanted to public hearing.

Speaker 3: These fees will be considered at November 29th, CMS Public Meeting, and typically determinations resulting from the public meeting are published a couple months later, and are effective in the subsequent calendar quarter, which in this case would be April 1, 2024. However, there is no guarantee that these will be the fixed CMIs, the final CMIs, or what the effective date will be.

These fees will be considered at the November 29th CNS public meeting typically determinations, resulting from a public meeting our published a couple of months later.

Given the subsequent calendar quarter, which in this case would be April 1st 'twenty 'twenty. Four however, there is no guarantee that these will be the fixed so you miles the final few mouse or what the effective date will be.

Speaker 3: While we're waiting for these decisions by CMS staff, we're instructed to present our latest clinical research to the DEMI-MAC medical directors, which we did this past spring.

While we're waiting for these decisions by CMS staff, we were instructed to present, our latest critical clinical research to the D V Mac medical directors, which we did this past spring. We're also advised to provide devices to Medicare part B beneficiaries. That's the final claims for payment.

Speaker 3: We're also advised to provide devices to Medicare Part B beneficiaries and to file claims for payments. I'm pleased to report that we now had five Part B claims approved and have received initial rental payments under the current HickPix codes.

I'm pleased to report that we've now had five part D claims approved and have received initial rental payments under the current hick picks codes.

Speaker 3: which is the first time we've received such payments since our codes went into effect in January 2019. We received multiple monthly rental payments on several of these claims, and importantly, all four of the DME Mac regions have paid for the patient's myopro. One additional myopro claim is still in process with the clinical documentation and supportive medical necessity still under review.

Which is the first time, we've received such payments since our codes went into effect in January 2019, we received multiple monthly rental payments on several of these claims and importantly, all four of the D Me Mac regions have paid for the patients Smile probe one additional micro claim is still in process with the clinical documentation and support.

Medical necessity still under review.

Speaker 3: Why all this is significant for Medicare beneficiaries and the company is that Medicare Part B patients should now have access to the MyoPro based on medical necessity and any coverage guidelines that may be issued.

Why all this is significant for Medicare beneficiaries in the company because that Medicare part B patients should now have access to the Mayo probe based on medical necessity and any coverage guidelines that may be issued.

Speaker 3: We've had to put these part D patients on hold until now. So going forward, we'll be able to work with their physician and supply our power-darm racist, desuutable candidates.

We've had to put these part D patients on hold until now so going forward, we'll be able to work with their physician and supplier powered arm racist as suitable candidates become.

Speaker 3: We commend CMS on making these braces available to seniors with Part B coverage, as it is a major step towards the goal of health equity.

We commend CMS I'm, making these braces available as seniors with part B coverage as it is a major step towards the goal of health equity.

Speaker 3: I'll wrap up my opening comments with a few other highlights. Our international operations led by Germany achieved a record $1 million of revenues in Q3. We have a growing pipeline of patients interested in myopro, a network of 100 own P clinics across Germany. You can provide the myopro and more wins at the German Social Court, which is world and favour of patients having access to myopro and requiring the payer to cover the cost of the device due to medical and assessment.

I'll wrap up my opening comments with a few other highlights our international operations led by Germany achieved a record $1 million of revenues in Q3, we have a growing pipeline of patients interested in my approach.

Network of 101 P clinics across Germany, you can provide the my approach and more wins at the journal German Social Court, which has ruled in favor of patients having access to my approach and requiring the payer to cover the cost of the device due to medical necessity.

Speaker 3: Our Chinese joint venture company made good progress during the quarter as medical device registrations were submitted to allow the sale of the mark units or the mobile arm rehabilitation.

Our Chinese joint venture company made good progress during the quarter as a medical device registrations were submitted to allow the sale of the bark units or the mobile arm rehabilitation kits to rehab hospitals in China, which would be initially used for rehab training purposes for which the hospitals could generate revenues.

Speaker 3: to rehab hospitals in China, which would be initially used for rehab training purposes, for which the hospitals could generate revenues. In addition, first, photos at Mark units are expected off the production line during this fourth quarter. Sales of the Myo Prode individual patients will occur further down the road when the regulatory body approves the device for home use. And we just don't know the timing of such approval at this stage.

[noise] first prototype Mark units are expected off the production line during this fourth quarter sales.

Sales of the myopia individual patients will occur further down the road when the regulatory body approves the device for home use and we just don't know the timing of such approval at this stage.

Speaker 3: Recompleeted our second capital raise this year in August and an 80% premium to the price of our equity offering back in January . I had publicly committed to reducing our cash burn this year while growing the business and working toward Medicare coverage of the myoprop.

We completed our second capital raised this year in August and an 80% premium to the price of our equity offering back in January.

I have publicly committed to reducing our cash burn this year, while growing the business and working toward Medicare coverage of the Micropro.

Speaker 3: Your today, our cash use and operations is 3.8 million, less than half the burn compared to the cash use and operations of 7.8 million for the same period in 2022.

Year to date, our cash used in operations is $3 8 million less than half the burn compared to the cash used in operations of $7 8 million for the same period in 2022.

Speaker 3: I'll now turn the call over to Dave Henry, my own CFO , review of our third quarter financial results. Dave?

I'll now turn the call over to Dave Henry My almost CFO review of our third quarter financial results Dave.

Thank you Paul and good afternoon, everyone, turning now to our third quarter financial results total revenue for the first quarter of 2023 was $5 1 million. This consisted entirely of product revenue, which is up almost entirely of product.

Speaker 4: Turning now to our third quarter financial results, total revenue for the first quarter of 2023 was 5.1 million. This consists entirely of product revenue, which is almost entirely of product revenue, I should say, which is a record for the quarterly product revenue and was up 28% over the priority.

Revenue I should say, which is a record for the quarterly product revenue and was up 28% over the prior year quarter. This growth was driven by a record 119 revenue units offset by a lower average selling price or ASP of 119 revenue units in the quarter was an increase of 37% over the prior year.

Speaker 4: This growth was driven by a record 119 revenue units offset by a lower average selling price, where AS...

Speaker 4: The 119 revenue units in the quarter was an increase of 37% over the prior

Sure.

Speaker 4: of the 119 revenue units approximately 40% resulted from fill, which is our term for authorizations and orders received and converted to revenue in the same quarter. This was a record number of fill units, which was aided by the addition of two insurance payers in their affiliates for which we have accumulated significant, so sufficient election history to enable revenue recognition at the time of mile pro-deliverment.

Of the 119 revenue units approximately 40%.

From Phil which is our term for authorizations in orders received and converted to revenue in the same quarter. This was a record number of field units, which was aided by the addition of two insurance payers and their affiliates for which we have accumulated significant or sufficient collection history to enable revenue recognition at the time of myopia.

So delivery.

Speaker 4: Nearly half of our direct billing revenue in the third quarter was from patients with payers where we were able to recognize revenue at delivery.

Nearly half of our direct billing revenue in the third quarter was from patients with Payors, where we were able to recognize revenue at delivery.

Speaker 4: ASP was approximately 42,700 dollars down 7% from the prior year. As we guided, do the pair and channel...

A S. P was approximately 42000 and $700 down 7% from the prior year as we guided due to payer and channel mix.

Speaker 4: The direct billing channel represented 69% of revenue in the third quarter, compared with 77% in the prior.

The direct billing channel represented 69% of revenue in the third quarter compared with 77% in the prior year quarter.

Speaker 4: International revenue represented 20% of product revenue in the second quarter.

International revenue represented 20% of product revenue in the second quarter.

Speaker 4: remaining 11% of revenue was from the VA and domestic ONP channels and sales of demo units and myopro control units to the JV company.

The remaining 11% of revenue was from the VA and domestic O N P channels and sales of demo units and myopia control units to the JV company in China.

Speaker 4: Backwall represents insurance authorizations and orders received, but not yet converted to rev-

Backlog represents insurance authorizations in orders received but not yet converted to revenue.

Speaker 4: Our backlog at the end of third quarter 2023 was 185 units, which is up 1% from our backlog at the end of third quarter 2022.

Our backlog at the end of third quarter 2023 was 185 units, which is up 1% from our backlog at the end of third quarter 2022.

Speaker 4: This backlog includes five patients for whom we are receiving rental payments from the U.N.

Backlog includes five patients for whom we are receiving rental payments from the D and the Max.

Speaker 4: received 156 authorizations and orders for myopros in the third quarter an increase of 20 percent compared with the prior year.

We received 156 authorizations in orders from mile Pros in the third quarter, an increase of 20% compared with the prior year quarter.

Speaker 4: Our patient pipeline increased to 1046 candidates. As a September 30, 2023, up 28% from the year ago quarter, which has been revised to reflect only known payers.

Our patient pipeline increased to 1046 candidates as of September 30th 2023 up 28% from the year ago quarter, which has been revised to reflect only known payers.

Speaker 4: 381 patients were added to our pipeline during the third quarter, an increase of 22% over the prior-

381 patients were added to our pipeline during the third quarter, an increase of 22% over the prior year.

Speaker 4: The URAGO pipeline additions have also been revised to reflect only known.

Your ago pipeline additions have also been revised to reflect only known payers.

Speaker 4: Note that the pipeline does not include Medicare Part B patients, which we're tracking separately for now.

Note that the pipeline does not include Medicare part B patients, which we're tracking separately for now we've made progress growing the Medicare part B pipeline in the third quarter.

Speaker 4: made progress growing the Medicare Part B pipeline in the third quarter.

Speaker 4: Gross margin for the third quarter of 2023 was 68.7 percent compared with 66.5 percent for the prior year.

Gross margin for the third quarter of 2023 was 68, 7% compared with 66, 5% for the prior year quarter.

Speaker 4: The increase was driven by improved fixed cost absorption on the higher volume, offset by a lower A.

The increase was driven by improved fixed cost absorption on the higher volume offset by a lower a S. P.

Speaker 4: Operating expenses for the third quarter of 2023 were $5.5 million, an increase of 1% compared with the third quarter of 2022.

Operating expenses for the third quarter of 2023 were $5 5 million, an increase of 1% compared with the third quarter of 2022.

Speaker 4: Modest increase was driven primarily by higher incentive compensation accrual, offset by lower advertising.

This modest increase was driven primarily by higher incentive compensation accrual offset by lower advertising expenses, which decreased 27% compared with the prior year quarter.

Speaker 4: which decrease 27% compared with the prior year course.

Speaker 4: We're on pace to spend roughly one million less on advertising in 2023 than we did.

We're on pace to spend roughly $1 million less on advertising in 'twenty two 'twenty three than we did in 2022.

Speaker 4: Our cost per pipeline ad was $2,159, which is down 36% compared with the prior year quarter.

Our cost per pipeline add was $2159.

Which is down 36% compared with the prior year quarter.

Speaker 4: Operating loss for the third quarter of 2023 was 2 million, compared with an operating loss of 2.8 million for the third quarter of 2022.

Operating loss for the third quarter of 2023 was $2 million compared with an operating loss of $2 8 million for the third quarter of 2022.

Speaker 4: Net loss for the third quarter of 2023 was also 2 million or 6 cents per share. This compares with the net loss of 2.8 million or 40 cents per share for the third quarter of 2022.

Net loss for the third quarter of 2023 was also 2 million or six cents per share. This compares with a net loss of $2 8 million or <unk> 40 per share for the third quarter of 2022.

Speaker 4: Note that the 8.7 million pre-funded warrants issued on our January and August 2023 offerings are considered common stock equivalents under GAP and are included and our weighted average shares outstanding. None of the pre-funded warrants are included on the pre-funded warrants.

Note that the $8 7 million pre funded warrants issued in our January and August 2023 offerings are considered common stock equivalents under GAAP and are included in our weighted average shares outstanding.

None of the pre funded warrants have been exercised as of today.

Speaker 4: Adjusted to the doff of the third quarter of 2023 was a negative 1.7 million, compared with a negative 2.5 million for the third quarter of 2022.

Adjusted EBITDA for the third quarter of 2023 was a negative $1.7 million compared with a negative $2 5 million for the third quarter of 2022.

Speaker 4: To summarize our year-to-date results, revenue for the nine months ended September 30, 2023 was $14.5 million, up 26% over the same period a year ago, while year-to-date product revenue of $12.8 million was up 21%.

So some of that summarize our year to date results revenue for the nine months ended September 32023 was $14 5 million up 26% over the same period, a year ago or year to date product revenue of $12 8 million was up 21%.

Speaker 4: Year-to-day gross margin was 69.6% compared with 66.2% in the year-ago period.

Year to date gross margin was 69, 6% compared with 66, 2% in the year ago period.

Speaker 4: Ross Margin on product sales for the nine months ended September 30th was 65.5.

Gross margin on product sales for the nine months ended September 30th was 65, 5%.

Speaker 4: Operating expenses for the first nine months of 2023 were $15.9 million, a decrease of 1% compared with the same period a year ago.

Operating expenses for the first nine months of 2023 were $15 9 million a decrease of 1% compared with the same period a year ago.

Speaker 4: Operating loss for the first nine months of 2023 was $5.8 million compared with an operating loss of $8.4 million for the same period a year ago. Net loss for the first nine months of 2023 was $5.7 million or 21 cents per share compared with a net loss of $8.6 million or $1.24 per share for the same period a year ago.

Operating loss for the first nine months of 2023 was $5 8 million compared with an operating loss of $8 4 million for the same period a year ago net loss for the first nine months of 2023 was $5 7 million or 21 cents per share compared with a net loss of $8 6 million or a dollar.

24 per share for the same period a year ago.

Speaker 4: Adjusted EBITDA was a negative $4.9 million for the first nine months of 2023, compared with a negative $7.4 million for the year-ago period.

Adjusted EBITDA was a negative $4 9 million for the first nine months of 2023, compared with a negative $7 4 million for the year ago period.

Speaker 4: Turning to our cash position, cash, cash equivalents and short-term investments as of September 30, 2023 were $11.1 million. Cash used in operating activities was $1.7 million for the third quarter of 2023 compared with $2.8 million for the prior year quarter.

Turning to our cash position cash cash equivalents and short term investments as of September 30th 2023 were $11 1 million.

Cash used in operating activities was $1 7 million for the third quarter of 2023, compared with $2 8 million for the prior year quarter.

Speaker 4: Looking ahead, our backlog is upmoniously on both the sequential and you're over your base.

Looking ahead, our backlog is up modestly on both a sequential and year over year basis.

Speaker 4: Assuming a typical quarter were fills in the range of 30 to 35% of revenue units, we believe we are positioned to deliver year-over-year revenue growth in the fourth quarter and full-year product revenue growth consistent with the growth through the first nine months, which is within the 20 to 30% range, we guided to at the beginning of the year. With that financial overview,

Assuming a typical quarter, where fills in the range of 30% to 35% of revenue units. We believe we are positioned to deliver year over year revenue growth in the fourth quarter and full year product revenue growth consistent with the growth through the first nine months, which is within the 20% to 30% range, we guided to at the beginning of the year.

With that financial overview, I'll turn the call back to Paul.

Speaker 3: Thanks Dave. Well, we're looking to continue the momentum we've achieved so far this year, and we expect to add additional medically qualified Medicare Part B patients to our pipeline in the fourth quarter so that we're ready to serve this population after the new brace category rule and the fees go into effect.

Thanks, Dave well, we're looking to continue the momentum we've achieved so far this year and we expect to add additional medically qualified Medicare part D patients to our pipeline in the fourth quarter. So that we're ready to serve this population after the new brake category rule and the fees go into effect.

Speaker 3: With that overview, we're now ready to take your questions, operator.

With that overview, we're now ready to take your questions operator.

Speaker 1: We will now begin the question and answer session. To ask a question, you may press star then one on your touchtone phone. If you are using a speaker phone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. At this time...

We will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone. If you are using a speakerphone. Please pick up your handset before pressing the keys to withdraw your question. Please press Star then two at this time, we will pause momentarily to assemble our roster.

Speaker 3: Before we take the first question, I just want to mention that we are available for virtual and in-person investor meetings, so please contact LHA Investor Relations to set up a time. We'll also keep you informed of developments at CMS about the status of the new brace category classification and the proposed fees, which will enable access to MyoPro by Medicare Part B patients. Okay. Thank you.

Before we take the first question I just want to mention that we are available for your virtual and in person investor meetings. So please contact <unk> investor relations to set up a time well also keep you informed of developments at CMS about the status of the new brace category classification, and their proposed fees, which will enable access to myopia.

So by Medicare part B patients.

Okay, operator, we're ready for the first question.

Speaker 1: Our first question comes from Scott Henry from Roth Capital. Please go ahead.

Our first question comes from Scott Henry from Roth Capital. Please go ahead.

Speaker 5: thank you uh... good afternoon and congratulations uh... some very well-deserved uh... progress on the reimbursement front uh... so uh... great job

Thank you good afternoon and congratulations.

I'm very well deserved a progress on the reimbursement front, so a great job.

Speaker 5: Couple questions, I guess first, when I look at the CMS fees for I believe it is the G and the W, I typically think of this...

Couple of questions.

I guess first when I look at the CMS fees for I believe it's the G and the W. Yeah.

I typically think of this as you know.

Speaker 5: 35, 40,000 ASP. So, you know, that 62 kind of looks higher. Is that just a blend or how do we think about that 62?

35, 40000 E. S. P. So yeah that 62 kind of looks higher is that just a blend or how do we think about that 62 in there.

Speaker 3: Yeah, well, CMS has its own methodology for calculating fees for new medical device.

Yeah, well CMS has its own methodology for calculating fees for new medical devices and they're required to follow the guidelines are using the published retail pricing.

Speaker 3: And they're required to follow the guidelines using the published retail pricing.

Speaker 3: So myOMO's ASP that we currently report is not the retail price, but it's a value affected by accounting calculations and other factors.

So my almost as Pea that we currently report is not the retail price, but it's a value affected by accounting calculations and other factors in.

Speaker 3: The ASP that we currently have is typically lower than the actual retail pricing, but it's got CMS as its own algorithms, what they call the gap filling method, where they take retail pricing, they back it up over a period of time, and then they add inflation. That's where they come to these pricing, which is consistent, by the way, with what we presented at the June 2022 public meeting. It sounds like...

The a S. P that we currently have is typically lower than the actual retail prices, but Scott CMS has its own algorithms are what they call the gap filling method, where they take retail pricing they backed it up over a period of time and then they add inflation and that's why they come to these pricing, which is consistent by the way with a what we present.

After June 2022 public meeting.

Okay. So it sounds like it's it's within your expectations and and you're probably pleased with at the levels. There is that correct. Yes. It's it's a again, it's consistent with what we have presented and is very workable to enable access for these part b beneficiaries.

Speaker 3: And you're probably pleased with the levels there. Is that correct? Yes, it's, again, it's consistent with what we have presented and is very workable to enable access for these part B beneficiary.

Speaker 5: Okay, great. And I noticed you changed the patient pipeline update. Have you included Germany in the past or is that new? And what was the driver? Is Germany likely going to be a material driver?

Okay, Great and I noticed you changed the patient pipeline update I have you included Germany in the past or is that new and and what was the driver as is Germany likely you're going to be a material market for you just curious on that.

Speaker 6: Curious on that. Yeah, well, go ahead, Dave.

Well go.

Go ahead, Dave.

Speaker 4: As I say, Germany has always been included in the pipeline. I think over the last couple of quarters, we've seen the drop rate in the pipeline decrease a bit, and I think that's helped grow the overall pipeline, because the ads have been in that 380 to 400 range this year as we've been sort of spending a consistent amount on advertising each and every quarter. So I think that's.

As I say no I you know, Germany has always been included in the pipeline I think you know the over the last couple of quarters, we've seen.

The drop rate and the bike pipeline decrease a bit and I think that's helped us grow the overall pipeline and you know it because he hasn't been in that 380 to 400 range. This year as we've been you know sort of spending a consistent amount on advertising.

And every quarter. So I think that's what you're seeing from the from the pipeline is just we're seeing fewer patients are right now dropping out.

Speaker 4: thing from the pipeline is that, you know, just we're seeing fewer patients are right

Speaker 5: Okay, great. Final question, five million and a quarter. Congratulations, that's a strong number, as well you have the 156 orders and authorizations.

Okay great.

Final question, Yeah, $5 million in a quarter yeah. Congratulations that that's a strong number as well you have the 156.

<unk> and authorizations I.

Speaker 5: When we put all that together, the question is...

Literally.

Well, we put all that together.

The question is how do we think about cash flow break even not necessarily you know.

Speaker 5: How do we think about cash flow break even, not necessarily gap break even? Seven million in a quarter do you think that gets you pretty close to break even? It seems like we're starting to get into that ballpark. Appreciate any color on this.

GAAP breakeven.

$7 million in a quarter or do you think that that gets you pretty close to breakeven in it because it seems like you know, we're starting to get into that ballpark.

Any color on that thank you, yeah, I I'd like to sort of defer a answer on that I mean, I like to see what the final fee is published from from CMS and with the public meeting is in end of November determinations from that meeting should be out by the end of February of 2024.

Speaker 4: Yeah, I'd like to sort of defer answer on that. I'd like to see what the final fee is published.

Speaker 4: And, you know, with the public meeting is in end of November , determinations from that meeting should be out by the end of February of 2024. So by the time we get to our third quarter, our first quarter, I should say, or fourth quarter conference call in March of 2024, you know, we might have a better idea and might be able to provide some more color on that.

So by the time, we get to our third quarter, our first quarter I should say.

Fourth quarter conference call in March of 2024.

I have a better idea and that might be able to provide some more color on that.

Okay Fair enough. Thank you for taking the question.

Speaker 1: The next question comes from Anthony Vendetti of the Maxim Group.

The next question comes from Anthony Vendetti of Maxim Group. Please go ahead.

Speaker 7: Thank you, thanks Paul and today. So the meeting that's going to be held on November 29th.

Thank you, thanks phone and data.

So the the meeting that's going to be held.

On November 29th.

Yeah.

Speaker 7: Who's going to be attending that meeting and

Who's going to be attending that meeting and.

Speaker 7: What's the expectation?

What what's the expectation.

Ah.

Speaker 7: post that meeting? Is the payment determination, is the exact amount going to be set then and then is the implementation likely to be 1-1-24?

Post that meeting it is that is that it's it's the payment determination.

Is the exact amount going to be said, then and then is the implementation likely to be one $1 24.

Speaker 3: So the public meeting has held twice a year, and CMS just published the agenda, which is available online. And the agenda includes pricing for a number of products, including ours. We're right on the agenda item number one with the proposed pricing.

So the public meeting is held twice a year and CMS are just published the agenda, which is available online.

Agenda includes a pricing.

For a number of products, including ours were right on the agenda item number one with the proposed pricing.

Speaker 3: So, attendees are anyone that wants to submit comments about the proposed pricing or anything else about our product or anybody else's products that are in the agenda. And then after CMS reviews any of those comments, they will typically come out with then their final fees and put that into what we call the alphanumeric tables. Usually, this takes them a couple of weeks.

All attendees are anyone that wants to submit comments about the proposed pricing or anything else.

About our product or anybody else's products that are in the agenda and then after CMS reviews any of those comments yeah. They will typically come out with and their final fees and put that into what we call. The alphanumeric tables are usually it takes them a couple of months. So we don't expect to see used to go into effect.

Speaker 3: So we don't expect the fees to go into the fact until perhaps April 1st, not maybe early in the night, but that's kind of our current expectation.

Until perhaps April 1st Yeah, maybe earlier than that but.

That's kind of our current expectation.

Speaker 7: Okay, so you're saying April 1st, and if it's earlier, great, but April 1st is the expectation. And then just in terms of revenue recognition, does this change any of your revenue recognition sort of expectations for 24, or was this kind of built into what you were expecting?

Okay, So you're saying April 1st and if it's earlier, great, but that they prefer as your expectation.

And then and then just in terms of Rev.

Revenue recognition.

Does this change any of your revenue recognition.

Sort of expectations for 'twenty four or was this kind of built into what you were expecting.

Speaker 4: I think as we, you know, if CMS, you know, publishes the fee and we start getting, you know, regularly paid that fee, then we will, our expectation is that we'll be recognizing revenue at delivery for Medicare Part B patients once we can establish collectability, which is, you know, the requirement under GAP. You know, we're going to be under.

I think as we you know if if CMS.

Publishes a fee and we start getting.

No regularly paid that fee then we will our expectation is that will be.

Recognizing revenue what delivery for Medicare part B patients once we can establish collectability, which is another requirement under GAAP, we're gonna be under.

Speaker 4: Our products will likely be reviewed under what's called individual consideration, so on a case by case basis. And we'll see as we go forward in 2024, how they're paying. And then once we feel comfortable, then we'll go ahead.

Our products will likely be reviewed under what's called the individual consideration. So on a case by case basis, and we'll and we'll see as we go forward in 2024, you know how their pain and then once we feel comfortable and then we'll go ahead and.

Speaker 4: and us and our auditors are comfortable, then we'll go ahead and start recognizing.

And us and our auditors are comfortable then we'll go ahead and start recognizing revenue on delivery.

Speaker 7: Okay, David, and just from history and doing this for many years, right, establishing collectability.

Okay, David and just from history and doing this for many years re establishing collectability.

Speaker 7: Is it, what I've learned anyway, is that auditors typically want to see a full year. Is that what you're expecting, a full year of establishing collectability, or do you think it could be shorter than that?

Is it what what Ive learned any ways that auditors typically wanted to see a full year.

Is that what you are expecting a full year of establishing collectability.

Or do you think it could be shorter than that.

Speaker 4: When we established collectibility for the insurers that I mentioned in my remarks, it was really based on more of a number of patients and time wasn't necessarily a factor. It was seeing a number of patients where if we get an authorization and we build a claim and deliver, we get paid. We see that happening enough times regardless.

When we when we establish collectability for or the insurers that I mentioned in my remarks. It was really based on a more of a number of patients and in time it wasn't necessarily a factor. It was it was seeing a number of patients where if we.

Get an authorization.

And we bill a claim and deliver we get paid we see that happening enough times, regardless of time, you know that.

Speaker 4: That would be the point at which we feel we can take revenue at today.

That would be the point at which we feel we can take it take revenue at delivery.

Speaker 7: No more based on number of patients. Do you have a range of what you think that number would be? Or are to say, bye.

No more based on number of patients do you have a range of what you think that number would be or.

Hard to say.

Speaker 4: I mean, I would say it's gotta be a few dozen.

I mean, it's a I mean I would say it's got to it's got to be you know a few dozen certainly.

Speaker 7: Okay, okay. And then, and then, you know, based on on on all the good news in November , right? It, you know, on November 1st, CMS published the final rule that reclassifies the MyoPro as a brace. And now this.

Okay, Okay, and then and then.

Based on on on all the good news in November right.

On November 1st.

CMS published the final rule that reclassified to my approach embrace and now this.

Speaker 7: Do you feel like the TAM for the myel pro has increased in terms of what it was maybe prior to November ?

Do you feel like the the Tam.

For the mile Pro has has increased in terms of what it was maybe prior to November.

Speaker 3: It's at least doubled to Anthony because you look at the majority of the stroke population are senior.

Hi, it's at least doubled Anthony.

Because if you look at the you know the majority of the stroke population are seniors.

Speaker 3: About 50% of seniors are covered by Medicare Advantage plans, and 50% of seniors are on the standard Medicare Part B. And we've only been able to serve that Medicare Advantage population until now. And so with these Part B patients, if they're medically eligible for the device, you know, that's half of the senior population. So, the way I look at it is, effectively, our TAM is doubled.

50% of seniors are covered by Medicare advantage clients and 50% of seniors are on the standard Medicare part B and we've only been able to serve that Medicare advantage population until now.

So with these part B patients are medically eligible for the device Oh, that's half of the senior population. So when I look at it is effectively our Tam has doubled.

Speaker 7: OK, that's helpful. Alright, great thanks very much. I'll hop back in the queue.

Okay. That's helpful Alright, great. Thanks, very much I'll hop back in the queue.

Yeah.

Speaker 1: The next question comes from Edward Wu with Ascendant Capital. Please go ahead.

The next question comes from Edward Woo with Ascendant capital. Please go ahead.

Speaker 8: Yeah, congratulations on the quarter, and especially on international. Should we expect that continued growth rate, high growth rate in Germany, and is there any possibility that it could increase even faster and what about possibilities for going outside beyond Germany in the rest of the EU?

Yes, congratulations on the quarter and especially on international.

We expect that continued growth rate of high growth rates in Germany and is there any possibility that it could increase even faster and you know what about possibly for going outside beyond Germany in the rest of the EU.

Speaker 3: Well, we've been really pleased with the consistent year-over-year growth.

Well, we've been really pleased with the consistent year over year growth.

Speaker 3: of Germany. As I said, it was a record quarter here in Q3. We've been building up the distribution network. We've been very successful in getting a sketch for health insurance payers to cover this. So we expect we'll have continued.

Of Germany, as I said, it was a record quarter here.

Q3, now we've been building up the distribution network that we've been very successful in getting a statutory health insurance payers to cover. This so we can expect we will have continued growth are there in Germany are we're looking at other markets, especially in U U you know where are we.

Speaker 3: They're in Germany. We're looking at other markets, especially in EU. Where we have CE Mark and we meet the EU MDR rules. Now the question will be reimbursement. It takes it off in a year or two to establish reimbursement. It's in the markets. Right now, we're basically doubling down and saying, look, Germany is a big country, over 80 million population.

We have CE, Mark and released the E M D. Our rules.

She'll be reimbursement.

They're often up a year or two to establish reimbursement in some new markets and so right now, we're basically doubling down and saying look Germany is a big country over 80 million population. So let's keep our serving the patients in Germany right now is our first priority for Europe.

Speaker 3: So let's keep serving the patients in Germany right now as our first priority for Europe .

Speaker 8: Is there a possibility to push the gas pedal a little faster to take advantage of the opportunity in Germany or do you feel like you're at a very comfortable pace?

Is there a possibly too you know pushed to gas pedal a little faster too.

Take advantage of the opportunity in Germany argue you feel like you're at a very comfortable pace.

Speaker 3: Well, we've got a good growth clip over there. It requires more marketing spend, more business development staff, more clinical trainers, and so on. So we want to go at a good pace, but I'll also do it in a quality manner because we want to make sure we're medically qualifying patients, getting all their documentation, and following up for good outcomes. So we'll continue to see a good pace of growth there in Germany.

Well, we've got a good growth clip over there you know it requires or marketing spend.

More business development staff more clinical trainers and so on so we want to go at a good pace, but also do it in a quality manner, because we want to make sure.

Were medically qualifying patients getting all their documentation.

Following up for good outcome. So now we'll continue to see a good pace of growth there are in Germany.

Great well, thank you and congratulations again.

Thank you.

Speaker 1: Our next question comes from Ben Hanor of Alliance Global Partners.

Our next question comes from Ben Hayner of Alliance Global Partners. Please go ahead.

Speaker 8: Good afternoon, gentlemen. Thanks for taking the questions. First off, for me, on the mix between the Myopro motion W and motion G, you know, where does that sit with your typical, in your typical corridor? And do you expect there to be any sort of difference with the Part B population?

Good afternoon, gentlemen, thanks for taking the questions.

First off for me on the mixed between the mile promotion W and emotion Gee you know.

Where does that sit.

With.

Your typical in a typical quarter and do you expect there to be any sort of difference with the part D population.

Speaker 3: Over 80, over exceeding over 90% of our orders are for the myopro G. That's the more expensive unit because it includes the glass, enables greater functionality of ADLs. And as far as we expect, it should be pretty similar for the Part B population as well as others.

Over 80 per over excuse me over 90% of our orders are for the Micropro Gee, that's the more expensive unit because it includes the grass.

Well as greater functionality of Adl's and yeah as far as we expect a you know it should be pretty similar for the part D population as well as our other seniors.

Speaker 8: Okay, great. And then on the payers that may not be covering MyoPro, would you expect them to kind of fall in line now that Medicare has, you know, made these changes or CMS has made these changes?

Okay, Great and then on the payers that may or may not be covering my approach would you expect them to kind of fall in line now that our Medicare has.

These changes.

CMS has made these changes.

Speaker 3: We expect that that will happen over time.

We expect that that will happen over time.

Speaker 3: Certainly, Medicare Advantage plans are required to provide whatever Medicare Standard Part B does.

Certainly Medicare advantage plans are required to provide whatever Medicare standard part B does so we think that will open up additional Medicare advantage plans are to the mile problem.

Speaker 3: So we think that will open up additional Medicare Advantage plans to the myopro.

Speaker 3: And then, as you are aware, often commercial plans will follow what Medicare does as well. So, over time, we'll be having meetings with various medical directors of these plans, the commercial side as well.

Then as you are aware often commercial plans will follow what Medicare does as well so the overtime will be having meetings with various medical directors of these plans to the commercial side as well about contracting, but certainly we're waiting for this Medicare part B, a sort of a blessing I think he was very.

Speaker 3: about contracting, but certainly waiting for this Medicare Part B blessing, I think it was very important for the overall reimbursement strategy with these other payers.

Important for the overall reimbursement strategy with these other payors.

Speaker 8: That makes sense. And then on the PEPB patients that you have in your database right now, I guess this maybe is more of a mechanics question, but when might you start including those in the pipeline, is that something that you just close to investors? Is that something that we would probably look to hear about, you know, kind of...

Okay that makes sense and then on the on the part D patients that you have in your database right now.

I guess it was maybe a maybe it's more of a mechanics question, but when might you start including those in the pipeline is that something that.

Can you just close to investors is that something that we would probably.

So look to hear about you know kind of.

Speaker 3: in the Q1 report, or could it be after that before that? What's the right way to think about that as you look at it today? Yeah, I think that's a good question. I think after everything gets finalized at CMS, the brace category rules in place, the franchise are published and so on. And as we continue to build up a patient pipeline or part B patients, we can be discussing that as well at that time.

Paul in the Q1 report or could it be after that before that what's the right way to think about that is as you look at it today.

I think that's a good question I think after everything gets finalized at CMS. The brake category rules in place the front cheese are published and so on.

And as we continue to build.

Buildup of paper Ah patient pipeline of part B patients you know, we can be discussing that as well at that time.

Speaker 8: Okay, got it. And you think you're going to expand the team, given these updates, you know, the benefit category change for both fee schedule. I mean, it seems like there's a lot of opportunity for you to go after if this falls into place, like it looks like it's going to, any thoughts on that front?

Okay got it and.

Do you think you're you're going to expand the team given given these updates to it at all of the benefit category changed schedule we have.

Seems like Theres a lot of opportunity for you to go after if this falls into place like it looks like it's going to.

Any thoughts on that front.

Speaker 3: But we've already been working on, you know, how do we scale up the business cost effectively? We've got the core infrastructure, you know, with about 110 people now inside the company. But certainly to gear up for the additional volume, we're gonna need additional manufacturing staff, maybe a second shift in our current facility by the order of additional inventory for the build.

Well, we've already been working on how do we scale up the business cost effectively yeah. We've got some core infrastructure are about 110 people now inside the company, but certainly to gear up for the additional volume we're going to need additional manufacturing staff, maybe a second shift in our current facility lost the order our additional inventory for.

Speaker 3: We'll have to add additional clinical staff in the field, whether it's the CPOs that do the evaluations and fittings, the mild care coaches that follow up. So yeah, we've been working on a plan, but we should get operating leverage because we've already invested in the core infrastructure as well.

The builds are well.

I have to add additional clinical staff in the field, whether it's out of the C. P owes it do the evaluations and fittings the mile care coaches that follow up so yeah. We've been working on a plan, but we should get operating leverage because he's already invested in the core infrastructure of the team.

Speaker 4: Okay, got it. That's it for me gentlemen. Hello start to November . Thanks, Ben.

Okay.

Got it.

That's it for me gentlemen, Hello start to November.

Thanks Ben.

Thank you.

Speaker 1: As a reminder, if you would like to ask a question, please press star then one.

As a reminder, if you'd like to ask a question. Please press Star then one.

Speaker 1: Since there are no further questions, this will conclude our question and answer session. I would like to turn the conference back over to Paul Godonis for any closing remarks.

Since there are no further questions. This will conclude our question and answer session I would like to turn the conference back over to Paul <unk> for any closing remarks, thanks, operator, well I want to thank the new investors that participated in our capital raises this year.

Speaker 3: Thanks, operator. I want to thank the new investors that participate in our capital raises this year. We've been able to attract well regarded fundamental health care investors who see the long term potential of this business. We've had a number of executives and board members also increase their stock holdings as well.

Here we go.

Been able to attract well regarded fundamental health care investors, who see the long term potential of this business, but we've had a number of executives and board members also increase their stock holdings as well as.

Speaker 3: And while forecasting quarterly revenues is always a challenge due to the factors I mentioned earlier, such as the number and the timing and insurance of the insurance authorization and the payer mix, we are poised for our 11th consecutive year revenue growth.

While forecasting quarterly revenues is always a challenge due to the factors I mentioned earlier, such as the number and the timing of insurance authorizations in the payer mix. We are poised for our 11th consecutive year of revenue growth you can see.

Speaker 3: We continue to add roughly 400 new candidates into our patient pipeline each quarter. We enter Q4 with a record number of patients in the pipeline. It will be including Part B beneficiaries as we go forward.

To add roughly 400, new candidates into our patient pipeline each quarter.

Enter Q4 with a record number of patients in the pipeline that will be including part D. Beneficiaries. As we go forward. So we're looking forward to the finalization of the CMS fee schedule and Micropro in the brake category with an anticipated effective dates.

Speaker 3: So we're looking forward to the finalization of the CMS fee schedule and myelpro in the brace category with an anticipated effective date.

Speaker 3: The ability to expand our addressable market to include those 50% of seniors in the US with the standard Medicare Part B coverage, a growing international business, especially in Germany and China.

The only to expand our addressable market to include those 50% of seniors in the U S with the standard Medicare part D coverage.

<unk> International business, especially in Germany, and China, and scaling the business with operational efficiencies. So that we can achieve cash flow breakeven at higher volumes in the future well. Thanks for your continued interest in Myanmar and have a good day everyone.

Speaker 3: scaling the business with operational efficiency so that we can achieve cash flow breakeven at higher volumes in the future. Well thanks for your continued interest in myOMO and have a good day everyone.

Speaker 1: Conference has now concluded. Thank you for attending today's presentation. You may now...

The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

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