Q4 2023 Tenon Medical Inc Earnings Call
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Operator: You too. Thank you, and Bill Conway, and everyone else. Greetings and welcome to the Tenon Medical fourth quarter and full year 2023 results, financial results, and corporate update conference call. As a reminder, this call is being recorded.
Greetings and welcome to the 10 on medical fourth quarter and full year 2023, Big Gulps financial results and corporate update conference call.
This call is being recorded.
Operator: Your hosts today are Steve Foster, President and Chief Executive Officer, and Steve Van Dyck, Chief Financial Officer. Mr. Foster and Mr. Van Dyck will present the results of the operations for the fourth quarter and full year ended December 31st, 2023 and provide a corporate update. A press release detailing these results was released today and is available on the Investor Relations section of our company's website, www.tenonmed.com. Before we begin the formal presentation, I would like to remind everyone that statements made on the call and webcast may include predictions, estimates, and other information that might be considered forward-looking. While these forward-looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not to place undue reliance on these forward-looking statements, which reflect our opinions only as of the date of this presentation.
Today are Steve Foster, President and Chief Executive Officer, and Steve Bender, Chief Financial Officer, Mr. Foster and Mr. Van de Wille presented the results of operations for the fourth quarter and full year ended December 31, 2023, and provide a corporate update.
A press release detailing these results was released today and is available on the Investor Relations section of our company's website Www Dot 10 on med dotcom.
Before we begin the formal part of the presentation I would like to remind everyone that statements made on the call and webcast may include predictions estimates and other information.
Might be considered forward looking while these forward looking statements represent our current judgment on what the future holds they are subject to risks and uncertainties that could cause actual results to differ materially.
You are cautioned not to place undue reliance on these forward looking statements, which reflect our opinions only as of the date of this presentation.
Steven M. Foster: Please keep in mind that we are not obligating ourselves to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. Throughout today's discussion, we will attempt to present some important information, some important factors relating to our business that may affect our predictions. For a more complete discussion of these factors and other risks, you should review our prospectus dated April 26, 2022, particularly under the heading Risk Factors, which is on file with the Securities and Exchange Commission at www.sec.gov. At this time, I'll turn the call over to Tenon Medical's Chief Executive Officer, Steve Foster. Please go ahead, sir.
Please keep in mind that we are not obligating ourselves to revise or publicly release the results of any revision to these forward looking statements in light of new information or future events.
Throughout today's discussion we will attempt to present some important a termination.
Some important factors relating to our business that may affect our predictions for a more complete discussion of these factors and other risks and you should review our prospectus dated April 26 2022.
Particularly under the heading risk factors, which is on file with the Securities and Exchange Commission at Www Dot FCC Dot Gov.
At this time I'll turn the call over to 10 on Medical's, Chief Executive Officer, Steve Foster. Please go ahead Sir.
Steven M. Foster: Thank you, Paul. And good afternoon to everyone. I'm pleased to welcome you to today's fourth quarter and full year 2023 financial results and corporate update conference call for Tenon Medical. The conclusion of 2023 marks a successful first full year of nationwide commercialization of the catamaran system and operating Tenon Medical as a public company. This success is highlighted by Tenon's significant progress in revenue growth and improving gross margins. We've entered 2024 from a position of operational strength and will continue our focus on building market share. We've made considerable commercialization and technical progress and continue to gain traction in our go-to-market approach with SIA-focused physicians and network partners, adopting our proprietary Catamaran system, which we believe has broadened the competitive field of surgical options available for patients with chronic sacroiliac joint pain or degenerative sacroilitis. During the fourth quarter, the Catamaran system experienced a 312% increase in the number The quarter was also highlighted by a third consecutive quarter of positive gross profit.
Thank you Paul and good afternoon to everyone I am pleased to welcome you to today's fourth quarter and full year 2023 financial results corporate update conference call or turn on medical.
In conclusion in 2023 marks a successful first full year of nationwide commercialization of the catamaran system and operating 10 on medical as a public company.
This success is highlighted by 10 on significant progress in our revenue growth and improving gross margins.
We've entered 2024 from a position of operational strength.
Our focus on building market share.
We've made considerable commercialization technical progress continuing to gain traction and our go to market approach.
Sigh focused physicians and network partners adopting our proprietary catamaran system, which we believe has broadened the competitive field surgical options available for patients with chronic sacroiliac joint pain or degenerative sacrilegious.
During the fourth quarter catamaran system experienced a 320, 12% increase in the number of surgical procedures from the prior year.
Each drove strong revenue growth with an increase of 192% year over year.
The quarter was also highlighted by a third consecutive quarter of positive gross profit Mauro.
Steven M. Foster: Moreover, as mentioned in prior quarterly updates, our revenue growth and largely fixed cost structure will continue to fuel our gross margin performance to be sustainable at recent levels. We believe our fourth quarter was a good proof point, as we achieved 69% gross margin, representing a significant sequential increase from 57% gross margin in the third quarter. For the full year of 2023, revenue grew 324% to $2.9 million, and gross profit increased to $1.2 million as compared to a gross loss for the full year of 2022. Continued expansion of our workshop activities during the fourth quarter is supported by our valued physician customers and the robust commercial infrastructure we've built. As a reminder, we take a precise go-to-market approach through our workshop and training programs in order to address physicians and medical professionals with extensive backgrounds and experience in SI surgical technology. We continue to focus on a hybrid approach with our local synthetic model and cadaveric lab workshops to introduce the Catamaran system, creating a timely and efficient process for our physician customers.
Moreover, as mentioned in prior quarterly updates our revenue growth and largely fixed cost structure will continue to fuel our gross margin performance to be sustainable at recent levels.
We believe our fourth quarter was a good proof point as we achieved 69% gross margin representing a significant sequential increase.
57% gross margin in the third quarter.
For the full year of 2023 revenue grew 324% to $2 9 million gross profit increased $1 2 million.
Paired to a gross loss for the full year of 2022.
Continued expansion of our workshop activities during the fourth quarter were supported by our value position customers and a robust commercial infrastructure we built.
As a reminder, we take a precise go to market approach through our workshop in training programs in order to address physicians and medical professionals with extensive backgrounds and experience an si surgical technologies.
We continue to focus on a hybrid approach with our local synthetic marble Cadbury lab workshops to introduce the catamaran system create.
Creating a timely and efficient process for our physician customers.
Steven M. Foster: We supplement these efforts with intensive clinical support and service. Combined, these critical activities are designed to drive acceleration in the number of procedures completed with the Catermaran system, which we've experienced since we began the initiative. Our programs hosted 133 physicians and catamaran workshops during the full year of 2023. During the fourth quarter, we enhanced our marketing initiatives with participation in a series of immersive physician webinar training programs featuring the Catamaran system and tracking over 60 health care providers. Our partnership with Dr. Matthew Davies of Orthopedic Associates of Duluth, Minnesota, provided a physician's perspective of our system as he discussed his clinical experience performing over 50 catamaran procedures. In addition to the presentation, Dr. Davies provided a demonstration of the simple anterior-posterior implantation technique of our unique transfixing SI joint implant.
We supplement these efforts with intensive clinical support and service.
Combined these critical activities are designed to drive acceleration in the number of procedures completed with catamaran system.
Which we've experienced since we began the initiative.
Our programs hosted 133 physicians ketamine workshops during the full year 2023.
During the fourth quarter, we enhanced our marketing initiatives with the participation in a series of immersive physician webinar training programs, featuring the catamaran system, attracting over 60 health care providers.
Our partnership with Dr. Matthew Davis Orthopedic associates for Duluth, Minnesota provided a physician's perspective by Barbara system, which he discussed is clinical experience performing over 50 catamaran procedures.
In addition to the presentation Dr. <unk> provided a demonstration of the simple inferior poster implantation technique of our unique Transfixing Si joint implant.
Steven M. Foster: Building on the momentum of the quarter, we expect the number of surgical procedures to continue to grow as our sales team broadens our strategic marketing, promotions, and workshops featuring the catamaran system. Additionally, we continue to enroll patients in our post-market, multi-centered clinical study and expect this enrollment to be finalized in the coming quarter. We expect a preliminary glimpse of early data in the coming weeks. Operationally, in November, we were proud to pass a full quality system inspection technique, or Q-SYS Level 2 inspection, conducted by the U.S. Food and Drug Administration. The Q-SYS inspection assesses a medical device manufacturer's compliance with quality system requirements and related regulations.
Building on the momentum of the quarter, we expect the number of surgical procedures to continue to grow as our sales team broadens, our strategic marketing promotions and workshops, featuring the catamaran system.
Additionally, we continue to enroll patients in our post market multi center clinical study and expect this enrollment to be finalized in the coming quarter, we expect.
Preliminary glimpse of early data in the coming weeks.
Operationally in November we were proud to pass a coal quality system inspection technique or CUSIP level, two inspection conducted by the U S food and drug administration.
The CUSIP inspection assesses the medical device manufacturers compliance with quality system requirements and related regulations.
Steven M. Foster: The FDA's pass grade is validation of our ongoing and stringent focus on our quality system, standardized controls, and strict operational procedures at Tenon Medical. Additionally, during the fourth quarter, we entered into a $1.25 million secured note financing led by Ascent Special Venture, which has been fully repaid by the issuance of Series A preferred stock announced in February. We deeply value this investment and vote of confidence from the Distinguished Investor Syndicate as veterans in the medical device industry. With the $2.6 million in proceeds received from the February Series A Preferred Offering and this corresponding extinguishment of debt, we've bolstered our cash position and refined our balance sheet as we track toward Tenon's next stage of development and growth in commercialization. With that, I'll turn it over to Mr. Ben Dick, our Chief Financial Officer, to discuss our concerns. Thank you, Steve.
The FDA as past grade as validation of our ongoing and stringent focus on our quality system standardized controls and strict operational procedures that turned on medical.
Additionally, during the fourth quarter, we entered a 125 $1 million to $5 million secured note financing led by a cent special ventures, which has been fully repaid by the issuance of series a preferred stock.
In February.
We deeply value this investment and vote of confidence from the distinguished investors Syndicate is veterans in the medical device industry.
With the $2 $6 million in proceeds received from the February series Z preferred offering and the corresponding extinguishment of debt, we bolstered our cash position and refined our balance sheet as we track towards 10 on this next stage of development and growth improved commercialization.
With that I'll turn it over to Mr. Ben <unk>, our chief financial officer to discuss our financials.
Thank you, Steve I'll give us a sink review of our financial results a full breakdown is available in our press release that crossed the wire. This afternoon are.
Steven M. Van Dick: I'll give a succinct review of our financial results. A full breakdown is available in our press release that went out this afternoon. Our revenue was $808,000 in the fourth quarter, an increase of 192% compared to $277,000 in the comparable year-ago period.
Our revenue was 808000 in the fourth quarter, an increase of 192% compared to 277000 in the comparable year ago period.
Steven M. Van Dick: Revenue for the year ended December 31st, 2023 was $2.9 million, an increase of 324% compared to the $691,000 in the comparable year-ago period. The increase in revenue for the year ending December 31st, 2023, as compared to 2022, was primarily due to an increase of 312% in the number of surgical procedures in which the catamaran system was used. Gross profit in the fourth quarter was $559,000, or 69% of revenues, compared to a gross loss of $207,000, or a negative 75% of revenues in the comparable year-ago quarter.
Revenue for the year ended December 31, 2023 was $2 9 million, an increase of 324% compared to the 691000 in the comparable year ago period.
The increase in revenue for the year ended December 31, 2023 was as compared to 2022.
It was primarily due to an increase of 312%.
<unk> surgical procedures in which the catamaran system was used.
Gross profit in the fourth quarter was 559000 or 16, 9% of revenues.
Compared to a gross loss of 207000 or negative <unk>, 75% of revenues in the comparable year ago quarter.
Steven M. Van Dick: Gross profit for the year ended December 31st, 2023 was $1.2 million compared to a gross loss of $641,000 for the year ended December 31st, 2022. Importantly, we have seen gross margins steadily improve. Due to revenue growth associated with the increased number of surgical procedures, operating leverage created due to a lower relative fixed cost and the absorption of more overhead into our standard cost. Operating losses totaled $3.1 million in the fourth quarter, compared to a loss of $7.9 million in the fourth quarter of 2022. For the year ended December 31st, 2023, operating losses totaled $15.7 million compared to $18.7 million in the prior year period. Decreased operating expenses were primarily the result of a decrease in sales and marketing expenses as a result of the internalization of our commercial team and the termination of our distribution partnership during the prior period, and decreases in General and Administrative Expenses. The net loss was $3.1 million for the fourth quarter compared to a loss of $7.9 million in the same period in 2022. For the year ended December 31st, 2023, the net loss was $15.6 million compared to $18.9 million in the prior year.
Gross profit in the year ended December 31, 2023 was $1 2 million.
Paired to a gross loss of 641000 in the year ended December 31 2022.
Importantly, we have seen gross margin steadily improve.
Due to the revenue growth associated with increased number of surgical procedures.
Operating leverage created due to a lower relative to fixed costs and the absorption of more overhead into our standard cost.
Operating losses totaled $3 1 million in the fourth quarter compared to a loss of $7 9 million in the fourth quarter of 2022.
For the year ended December 31, 2023, operating losses totaled $15 7 million compared to $18 7 million in the prior year period.
Decreases in operating expenses was primarily the result of a decrease in sales and marketing expense as a result of the internalization of our commercial team and the termination of our distribution partnership during the prior period.
And decreases in general and administrative expenses.
Net loss was $3 1 million for the fourth quarter compared to a loss of $7 9 million in the same period in 2022.
For the year ended December 31, 23, net loss was $15 6 million compared to $18 9 million in the prior year.
Steven M. Van Dick: The company expects to incur additional losses in the future. As of December 31st, 2023, cash and cash equivalents and short-term investments totaled $2.4 million as compared to $8.6 million as of December 31st, 2022. As of December 31st, 2023, the company had $1.2 million of outstanding debt related to our secured note offering in November, which has been fully repaid subsequent to quarter end with Series A preferred stock. As of today, the company has no outstanding debt.
The company expects to incur additional losses in the future.
As of December 31, 2023, cash and cash equivalents and short term investments totaled $2 4 million as compared to.
$8 6 million as of December 31, 2022.
As of December 31, 2023, the company had 1.1.
The $1 2 million of outstanding debt related to our secured note offering in November.
Which has been fully repaid subsequent to quarter end with the series the series a preferred stock.
Today, the company has no outstanding debt.
Steven M. Foster: I will now turn the call back to Steve for his closing thoughts. Thank you, Steve. With the accelerating pace of catamaran procedures and continued expansion of our sales and marketing efforts, we're very optimistic about continued growth in the commercialization of our proprietary, FTA-cleared surgical implant system. We ended the fourth quarter with solid momentum and revenue and a third consecutive quarter of positive gross margin. For the year, we saw a 312% increase in surgical procedures, followed by a 324% increase in full-year revenue. We believe we will continue this growth trajectory with our expanding commercial infrastructure and seasoned sales management team. We continue to reinforce our commitment to validating and differentiating patient outcomes and radiographic assessment with ongoing post-market clinical studies and expect to expand the application of our distinct product offering to address SI revision surgery and adjunct to multi-level fusion.
I will now turn the call back to Steve for closing thoughts.
Thank you Steve.
With the accelerating pace of catamaran procedures and continued expansion of our sales and marketing efforts, we're very optimistic for continued growth and the commercialization of our proprietary FDA cleared surgical implant system.
We ended the fourth quarter with solid momentum and revenue.
Third consecutive quarter of positive gross margin.
For the year of 312% increase in surgical procedures.
Following by a 324% increase in full year revenues.
We believe we can continue this growth trajectory with our expanding commercial infrastructure in season and sales management team.
We continue to reinforce our commitment to validating and differentiated patient outcomes and radiographic assessment with ongoing post market clinical studies and expect to expand the application of our distinct product offering to address ESI revision surgery.
Adjunct to multi level fusion.
Operator: We are dedicated to executing our growth objectives as we prioritize improving the quality of life of patients suffering from SI joint pain while pursuing long-term value for our shareholders. I thank you all for attending, and I would like to hand the call back over to our operator to begin our question and answer session with our covering analyst.
We are dedicated to executing our growth objectives as we.
Prioritize improving quality of life of patients suffering from Si joint pain, while pursuing long term value for our shareholders.
I. Thank you all for attending and I would like to hand, the call back over to our operator to begin our question and answer session with our covering analysts.
Yes.
Operator: Thank you. We'll now be conducting a question-and-answer session. If you'd like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue.
Thank you well now be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad confirmation tone will indicate your line is in the question queue. You May press star two if you'd like to remove your question from the queue for participants using speaker equipment to may be necessary to pick up your handset before pressing the star keys.
Operator: You may press star 2 if you'd like to remove your question from the list. For participants using speaker equipment, it may be necessary to pick up your handset before pressing start. One moment, please, while we poll for questions. Our first question is from Bruce Jackson with The Benchmark Company. Please proceed with your question. Hi guys, thanks for taking my questions.
The other place while we poll for questions.
Our first question is from Bruce Jackson with the Benchmark Company. Please proceed with your question.
Hi, guys. Thanks for taking my questions just real quick how many surgeons to be trained during the quarter.
Steven M. Foster: Just real quick, how many surgeons did you train during the quarter? So we, thanks Bruce, and good to hear from you. We've trained 28 physicians over the quarter and 133 over the entire year.
So we thanks, Bruce and good to hear from you.
We trained 28 positions over the quarter and one on 133 over the entire year.
Steven M. Foster: Okay, super. And then with the post-approval study, what's the final enrollment number? Yeah, the study was approved, Bruce, for 50 patients. We may wind up anywhere between 40 and 50 on this thing when we feel like we've got a good data set cooking and what have you. So, very much towards the tail end of that enrollment.
Okay Super and then what the post approval study, what's the final enrollment number.
Yes.
The study was approved Bruce for a 50 patient.
May wind up anywhere between 40 and 50 on this thing.
And when we feel like we've got a good dataset cooking and what have you. So very much towards the tail end of that enrollment expect court to wrap up here in the coming quarter.
Steven M. Foster: Expect it to wrap up here in the coming quarter. And, as I mentioned, I'm very excited about getting an early glimpse at, you know, the things we're focused on here. First, the safety profile. Second, of course, is the efficiency and the effectiveness of the procedure to relieve patients' pain.
And as I mentioned very excited about getting an early glimpse at the.
The things we're focused on here at first safety profile.
And of course as the.
<unk> C and the effectiveness of the of the procedure to relieve patients pain.
Operator: And then, as a secondary endpoint, the radiographic assessment, you know, seeking a healed and fused SI joint. So we see that early glimpse coming here very soon and enrollment wrapping up here shortly. Okay, great. That's it for me.
Then as a secondary endpoint the radiographic assessments.
Seeking a heel then fused si joint so we see that we see that early glimpse coming here very soon and enrollment wrapping up here shortly.
Okay.
Anthony V. Vendetti: Thank you. Thank you, Bruce. Our next question is from Anthony Vendetti with The Maxim Group. Please proceed with your question. Yes, thanks.
Great. That's it for me thank you.
Thank you Bruce.
Our next question is from Anthony Vendetti with Maxim Group. Please proceed with your question.
Yes. Thanks.
So you did.
Operator: You trained 28 physicians in the fourth quarter. Do you have a target, Steve, for per quarter training approximately or a goal for 2024? Sure, Anthony.
You trained 28 physicians in the fourth quarter do you have a target Steve for <unk>.
Per quarter training, approximately or a goal for 2024.
Sure Anthony we of course, we do have objectives and goals there internally and really we focus primarily on quality rather than quantity I could train 1 million people. They don't adopt I'm not making any headway. So it's really about targeting so we hope to.
Steven M. Foster: Of course, we do have objectives and goals internally. And really, we focus primarily on quality rather than quantity. I could train a million people.
Steven M. Foster: If they don't adopt it, I'm not making any headway. So it's really about targeting. We hope to achieve 25 plus well-targeted, good-profile physicians every single quarter and to really focus our energy. Look, we're a relatively small operation. We need to aim small, miss small, and really focus our energies to make sure we finish and we're successful in achieving adoption. So, probably right in that 25 to 30 area is our sweet spot.
To achieve 25 plus.
Well targeted.
Profile physicians everything every single quarter, and Theyre really focus our energy look we're a relatively small operation we need to aim small miss small and really focus our energies to make sure we finish and were successful.
Achieving adoption, so probably right in that 25 to 30 areas, our sweet spot and will continue to build on that as time progresses.
Steven M. Foster: And we'll continue to build on that as time progresses. Okay, great. And then from a utilization perspective, I know it's early, and so it could be a little lumpy quarter to quarter, but what trends are you seeing in terms of the utilization of the catamaran system? Yeah, you know, the market is extraordinarily dynamic. There was a new reimbursement coding that came out in 2024. That always creates a lot of questions in the marketplace and things of that nature.
Okay, Great and then.
From a utilization perspective, I know it's early.
And so it could be a little lumpy quarter to quarter, but what trends are you seeing in terms of the utilization of the catamaran system.
Yeah.
The market is extraordinarily dynamic there were some new reimbursement coding that came out in 2024 that always creates a lot of questions in the marketplace and things of that nature very dynamic what I can tell you is that the number of procedures is still growing.
Steven M. Foster: Very dynamic. What I can tell you is that the number of procedures is still growing. The space is seeing a lot of innovation and a lot of dynamic activity. Certainly, you're right, with a relatively small base of customers, we do see some lumpiness here and there as patients defer from one quarter to the next or you see cancellations or what have you. But generally speaking, physicians are making progress in making SI a part of their practice. There's some work there in the diagnostic component of the equation, in particular, to start building SI as part of their offering and their practice.
Spaces statements and seen a lot of innovation a lot of dynamic activity.
Certainly you're right with a relatively small base of customers, we do see some lumpiness here and there as well.
Patients differ from one quarter to the next or you see cancellations or what have you, but generally speaking our physicians are making progress in making <unk> a part of their practice there is some work there.
And the diagnostic component of the equation in particular.
To start with building Psi as part of their offering in their practice a lot of progress there and a lot of growth in this marketplace.
Steven M. Foster: A lot of progress there and a lot of growth in this marketplace. Okay. Excellent. And then lastly, I believe you launched a new instrumentation kit. What's been the reception for that?
Okay excellent and then lastly, just I believe you launched a new instrumentation kit.
What's been the reception.
Steven M. Foster: And then just general thoughts on the physicians that you gleaned from the fourth quarter. Yeah, at the risk of sounding a little over exuberant, the reaction to our GIB technology has been outstanding. It's a smaller profile, and that doesn't just mean a smaller incision for the patient. It also means improved visualization during the radiographic process for the physician, and that's extraordinarily important. They need to see the surrounding landmarks and so on.
From that and then just just general thoughts on on the physicians that you gleaned from the from the fourth quarter.
Yeah the.
The risk of sounding a little over 2%.
The action to our gym technology has been outstanding with a smaller profile.
And that doesn't just mean, a smaller incisions for the patient, but also need to improve the visualization.
During the radiographic process.
For the disposition and Thats extraordinarily important they need to see the surrounding landmarks and what have you. This new profile is really allowing them to do that so the reaction has been outstanding.
Steven M. Foster: This new profile is really allowing them to do that, so the reaction has been outstanding. As for the customers that we trained and put through workshops in Q4, of course, that begins the process of moving them towards adoption, getting approvals at their facilities and things of that nature, and we continue to work through that and sprint to get them to that first surgery and get them adopted. Okay, great. Thanks so much. I'll hop back in the queue. I appreciate it. Thanks, Ben. Thank you. There are no further questions at this time. I would now like to turn the call back over to Mr. Foster for his closing remarks. Thank you, Paul. I'd like to thank each of you for joining the earnings conference call today and look forward to continuing to update you on our ongoing progress and growth. If we were unable to answer any of your questions, please reach out to our IR firm, MZ Group. We'd be more than happy to assist.
As to the customers that we've trained and put your workshops in Q4 of course that begins the process of moving them towards adoption getting approvals at their facilities and things of that nature.
And we continue to work through that and sprint to get them to that for surgery and get them adopted.
Okay.
Okay, great. Thanks, so much I'll hop back in the queue I appreciate it.
Thanks Anthony.
Thank you there are no further questions at this time I would now like to turn the call back over to Mr. Foster for his closing remarks.
Thank you Paul I'd like to thank each of you for joining the earnings conference call today, and look forward to continuing to update you on our ongoing progress and growth.
We were unable to answer any of your questions. Please reach out to our IR firm MZ group, who would be more than happy to assist with that I wish everyone. A good day.
Steven M. Foster: And with that, I wish everyone a good day. This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.
This concludes today's conference you may disconnect your lines at this time. Thank you for your participation.