Q1 2024 NRx Pharmaceuticals Inc Earnings Call
Good afternoon, everyone and welcome to the editor X Pharmaceuticals, Inc. First quarter of 'twenty 'twenty four results conference call.
Currently all participants are in a listen only mode.
A reminder, that this conference call is being recorded.
I will now turn the call over to match your Duffy the company's Chief business Officer. Please go ahead.
Yeah.
Thank you Jonathan and welcome everyone.
Before we proceed with the call I would like to remind everyone that certain statements made during this call are forward looking statements under U S Federal Securities laws.
These statements are subject to risks and uncertainties that could cause actual results to differ materially from historical experience or present expectations.
Additional information concerning factors that could cause actual results to differ from statements made on this call is contained in our periodic reports filed with the SEC.
The forward looking statements made during this call speak only as the date hereof.
Undertakes no obligation to update or revise the forward looking statements.
Information presented on this call is contained in the press release issued earlier today.
And in the company's Form 10-Q filed today.
Which may be accessed from the investors page of the Arab Pharmaceuticals, Inc website.
Joining me today on the call are Steven Willard, our chicken Chief Executive Officer.
Jonathan Javits, our founder Chairman and Chief scientist and Richard Murray, Our Chief Financial Officer and Treasurer.
Jonathan C. Javitt: Steven the Jonathan will provide a summary of our company's progress.
Richard Murray: Richard If you review the Companys financial results and then Steven will review upcoming milestones before making comments.
Following their prepared remarks, we will address investor questions.
Steve: Now I'll turn the call over to Steve Steve.
Thank you, Matt and good afternoon, everyone and thank you for joining us.
Steven: <unk> had an incredibly productive and eventful start to 2024.
Steve Steve: With a great deal more to come through the remainder of the year, we are accelerating our work to bring hope to life.
The past quarter, culminating with our clinical trial results last week has been enormously productive.
Jonathan will be discussing our scientific progress, let me begin by addressing our progress as a company.
Jonathan: You will notice that at the end of March we had a lower cash balance than it had been typical for us because we used available cash to pay down debt district.
C.
During the quarter, we signed and announced the $5 1 billion dollar advance against milestones from Alberta and luggage pharmaceuticals.
Speaker Change: And have used those funds to support our clinical operations.
Those funds do not appear on our balance sheet, because they are paid directly to clinical trial partners.
As you saw last week, our corporate debt was accelerated by Studer group.
Principal is publicly charged by the FCC on various matters.
That development combined with our recent clinical developments generated enthusiasm from a number of well regarded funding sources.
In addition to the supportive you have Hudson on the equity side, we have now signed a $30 million or non binding term sheet that will eliminate our current corporate debt and provide growth capital for revenue generating approved drugs.
Do our pipeline, while substantially lowering our borrowing costs.
We anticipate that separating ourselves completely from a lender who has not been supportive of our growth will be beneficial to shareholders and will substantially reduce our cost of debt service.
Jonathan will talk more about the science behind our X 101 in a moment.
But I'm also excited to point out that our new cholesterol data for our X 101 support a product profile that.
Speaker Change: Could potentially be superior to the current standard of care in bipolar depression.
And our regulatory counsel believes that these data support the filing of a new drug application for <unk> 101, and bipolar depression.
Market of more than $2 billion.
Speaker Change: 20 billion another <unk>.
Investors have approximately and appropriately asked us about the planned hope therapeutics dividend that we anticipate to achieve in March.
We have been advised that the hope shares their best distributed after they're already registered in compliance with the 1934 Securities Act and we are in the process of affecting that registration.
Quired audits on hope are near completion, and we respect expect to filed the required FCC registration this quarter.
We appreciate our investors patience as we work through these processes.
I'm incredibly proud of the progress our team has made this year.
Speaker Change: I'm grateful to our partners and investors as well as the all of the patients who have participated in our clinical trials, we look forward to continuing.
And to build value for our shareholders and delivering life saving treatments to patients.
Speaker Change: Most importantly, we continue to believe that 2024 will represent our transition from a purely research and development company to a revenue generating pharmaceutical company.
Now I would like to invite Dr. Jonathan <unk>, our chief scientist to review our clinical development program.
Thank you Steve as Steve noted, we've made important progress with our clinical development pipeline over the past few months.
Speaker Change: Our lead drug candidate in our X 101 has delivered unprecedented data and suicidal bipolar depression based on these data and our S. One on one has demonstrated comparable anti depressant efficacy to the current standard of care Lurasidone, while significantly reducing what is for <unk>.
Steve Steve: The most dangerous side effects of this class of drugs acre seizure, a side effect considered by many to be a precursor to suicide.
Steve Steve: Indeed reductions in suicide reality, and HSE Asia had been seen previously within our X one on one and a stable <unk> trial, which was published in the peer reviewed literature. So this is the second time, we found this result.
HSE Asia: <unk> consistently seen in 10% to 15% of people, who take the La Raza, one class of drugs and no. Prior anti depressant has ever demonstrated a reduction in acre seizure.
FDA: These studies along with others in the literature provides strong support for filing a new drug application with the FDA for patients with bipolar depression poured rescue like the patient the FDA is well aware of the potential risks associated with today's anti depressants and currently requires that a suicide.
FDA: Can be placed on the label of all current antidepressants.
FDA: Existing FDA precedent for approval of novel anti Depressants I'd have comparable anti depressant effect combined with reduced side effects.
Speaker Change: So far the key opinion leaders with whom we have spoken I've been unambiguous in identifying akathisia is the most troubling side effects of the La Raza one class of drugs. Those are the drugs that are used to treat bipolar depression, and they've told us that they would welcome a new drug that reduces its.
Speaker Change: Slower lethal side effect.
Speaker Change: We've been invited to present. These data later this month at the American Society of clinical Psychopharmacology meeting in Miami together with Professor Andrew Nierenberg, the study's principal investigator and the head of bipolar research at Harvard Mass General Hospital.
Speaker Change: We aim to host a key opinion leader discussion of Akathisia and bipolar depression at that conference and please look for details.
Speaker Change: The second new drug application. We're planning is for <unk> 100, our form of IV ketamine for the treatment of suicidal depression.
Speaker Change: The efficacy of this product is well established but it's never been presented to the FDA in the data format and detail that's required for a drug approval.
Speaker Change: Therefore, we've licensed patient level data from the government of France from Columbia University, and Harvard University to support this application.
Speaker Change: The data are further supported by additional findings in the medical literature, including dose ranging data, which is always important to the FDA.
Speaker Change: Now a limitation of ketamine is that the old generic formulation dates back to the Korean War.
Speaker Change: Highly esthetic and it can be used for intravenous infusion, but not for subcutaneous treatment.
Speaker Change: Hertz causes skin ulcers.
HTS: Last month, we announced the formulation of a patentable ph neutral form of ketamine that we've designated HTS 100, we anticipate that this will bring the this will be the commercial product we bring to market.
Hooked Therapeutics: To support hooked therapeutics, well IV ketamine offers numerous benefits to patients it's cumbersome for administration in the clinical setting in.
Hooked Therapeutics: Intranasal ketamine on the other hand has failed to demonstrate anti suicide on properties.
Hooked Therapeutics: We're going to start with IV ketamine, but aim to augment it with far more convenient form of administration that has equal efficacy.
Speaker Change: So the studies, we presented demonstrate an exceptional degree of efficacy really in a matter of hours and suicides really depressed patients when treated with ketamine.
Speaker Change: This is vitally important in our country, where the only approved treatment for suicidology Electroconvulsive therapy.
CDC: The CDC state set approximately $3 4 million Americans they can actual plan to commit suicide each year by.
CDC: By all measures. This is a national epidemic, we plan to bring this life saving product to market as soon as possible. The current market for intranasal Academy is already $715 million and Thats a product that doesn't have anti suicide of properties, we expect our Ma.
Speaker Change: Market to be much larger.
Speaker Change: To continue to build value for <unk> shareholders, we intend to distribute shares of hope therapeutics to existing shareholders in the near term and to seek a public listing for that company on a national exchange.
Speaker Change: We are actively building out our team our partners and our network with the goal of launching the product in early 2025.
Speaker Change: Hello bench and extend the efficacy of IV Ketamine, we're planning development of a companion digital therapeutics.
Speaker Change: Previously participated in developing a digital therapeutics for the U S Navy to reduce combat stress and special forces operators, a product whose development was funded by the defense Advanced research projects agency known to many as DARPA and its still in use.
Speaker Change: Today I'm delighted to announce that our former Chief strategy Officer, Dennis Mcbride, who has just completed his tour of duty.
Dennis Mcbride: We will be leading this project on behalf of our company.
Dennis Mcbride: You'll be hearing more from dentists in coming weeks his biography, which includes 20 years in the Navy.
Dennis Mcbride: Three tours of duty as a DARPA program officer, and most recently in <unk> and the office of the under Secretary of Defense is on our website.
Speaker Change: Ultimately, we expect the digital therapeutic will be part of our FDA label and that it will further enhance our exclusivity will build on these learnings and technologic advances to help suicidal patients stay on track.
Speaker Change: The addition of digital therapeutics toward ketamine product is expected to extend this effect and to build our market exclusivity.
Speaker Change: Obtaining FDA approval, we will enhance our ability to approach insurers to cover the cost of ketamine therapy with so many people need for the treatment of suicidal depression.
Speaker Change: Our discussions with clinics to date has indicated that the lack of reimbursement. It's one of the key impediments to patients being able to get the treatment that they need.
Speaker Change: We aim to solve this problem and to bring hope to life.
Speaker Change: In order to gain approval for a drug you have to manufacturer drug to FDA standards.
Front Pharmaceuticals: In other words, you can get approval for a drug you haven't made this month, we're in the nine months stability endpoints in our manufacturing partnership putting that front pharmaceuticals.
Front Pharmaceuticals: I mean, it's publicly identified by the FDA as being on drug shortage in the United States and together with an upfront we're already able to distribute ketamine under a 500 <unk> pharmacy license we.
Front Pharmaceuticals: <unk> reporting first commercial revenues in the near future.
Northwestern University: We currently await the results of a 200 patient department of Defense sponsored study in chronic pain being conducted at northwestern University with these cyclists sharing the key component of our X 101, where as eager as you are to see those results our colleagues at northwestern have advised us that the date.
Debates: Debates is now locked and the northwestern.
Debates: Institutional review Board. The IRB has approved the statistical analysis plan and given clearance for the data analysis.
Northwestern University: And our X 101 for chronic pain would offer a treatment.
Northwestern University: Beyond those treatments that are currently available to patients.
Northwestern University: In today's world you have a choice between the.
IRB: Tylenol Advil class of drugs that may lack of efficacy and the opioid class of drugs that may be highly addictive, but not much in the middle and our X 101 offers the possibility of a highly effective but non addictive treatment option.
X 101: As you know in January we opened an indie brand Rx 101 in complicated urinary tract infection and pyelonephritis.
X 101: Now the reason this drug affect bacteria are completely different from the reasons. It affects the brain, but in fact these type of Syrian began its life as an antibiotic.
Speaker Change: So that <unk> was based on data from a study we recently sponsored a Charles River labs are highly respected contract research organization.
Speaker Change: Demonstrated significant anti bacterial effective <unk> one on one against the worst resistant urinary pathogens. The pathogens that are all on the congressionally mandated lists of dangerous pathogens and can qualify you.
Speaker Change: What's called <unk> or qualified infectious disease product status.
Speaker Change: And in fact, these data motivated the SBA to grant us Q IDT status, along with fast track and priority review designations.
SBA: Several weeks ago, we reported data demonstrating that <unk> hundred one does not damage the normal bacteria in the intestine known as the microbiome.
SBA: The reason that's critically important is all other antibiotics for complicated UTI disrupt the intestinal microbiome and they're well known to result in an infection called C. Difficile. Some people call. It C. Diff now as best he just causes several weeks of horrible and tractable diarrhea.
Some people: However, C diff is lethal and 10% of those over the age of 65, who are infected.
Speaker Change: Therefore, an antibiotic for complicated UTI that does not cause C. Diff is likely to have considerable market appeal.
partners: Finally, we're working with our partners that the fundraising fundamental long Paris.
partners: Early stage opportunity that may represent the world's first disease modifying drug for schizophrenia.
unknown: Everybody knows of the devastating effect of schizophrenia on patients and their families.
unknown: 1% of the population.
unknown: As this lifelong debilitating disease.
partners: Addison is used to treat schizophrenia maintenance should symptoms, especially the hallucinations to varying degrees.
Addison: However, theres never been a medicine that has potential to reverse the disease and some patients.
Addison: We anticipate providing our investors with a complete presentation on what may be the first disease modifying that is the first potentially curative drug for schizophrenia by the end of this quarter.
Speaker Change: As you can see we have robust clinical development plan with multibillion dollar potential we work our hardest every day to bring this plan to reality.
Speaker Change: And to bring hope to life.
Richard Clavano Narido: I'll now ask rich <unk>, our CFO to review the first quarter financials rich.
Richard Clavano Narido: Thank you Jonathan and good afternoon, everyone.
Richard Clavano Narido: I will now review the highlights of our first quarter 2024 financial results.
Richard Clavano Narido: For the first three months ended March 31 2024.
Richard Clavano Narido: <unk> pharmaceuticals reduced our net loss from operations by 41% compared to the prior year from $11 million in the first quarter of 2023 to $6 $5 million in 2024.
Richard Clavano Narido: For that same period.
unknown: Research and development expenses were $3 $7 million in 2023 to $1 $7 million in 2024.
Speaker Change: Finally, as our clinical trial enrollment.
Speaker Change: The $2 million decrease is related primarily to a decrease of $1 6 million and <unk>.
Speaker Change: Clinical trial expenses.
Speaker Change: <unk> 2 million and our regulatory and process development costs, and <unk> 1 million in stock based compensation.
Speaker Change: Also in that three months period, we recorded a 26% reduction in general and administrative expenses from $5 $8 million in 2023 to $4 $3 million in 2024.
Speaker Change: The decrease of $1 5 million was related primarily to a decrease of $1 2 million in insurance expenses.
Speaker Change: <unk> 4 million in employee expenses.
Speaker Change: Slightly offset by other general administrative expenses.
Speaker Change: As of March 31, 2024, we had the $1 $3 million in cash and cash equivalents. However, this does not tell the whole story because of the clinical expenses. So they are now being paid directly by our partners over.
partners: Over the first three months of 2024, we improved our access to working capital by $8 million in total representing 2 million $2 $9 million from micro <unk> sales and $5 $1 million from the outages milestone in advance while reducing our corporate indebtedness with <unk> LLC by $2 2 million.
Speaker Change: Subsequent to March 31, 2024, we continue to increase our working capital by $3 3 million from equity sales.
Speaker Change: We continue to implement operational efficiencies to extend runway and focus on our path to generating revenue and value for our shareholders.
Steve Steve: With that I will turn it back to Steve for closing remarks, Steve.
Steve: Thanks Rich.
Steve: With two NDA as planned for the coming months I hope share distribution plan to out licensing opportunities and an improved cash position, we are well positioned for the future addressing a range of unmet medical needs and suicidal bipolar depression, chronic pain, suicidality and complicated urinary tract.
Rich: Infections, we have an opportunity to create a highly successful and vibrant biotechnology company.
Rich: I'm incredibly proud of our team our collaborators and partners and most of all the patients who have made such an important contribution to these efforts.
Steve: Together, we are pursuing an rx, what's called a bringing hope to life on a daily basis.
investors: We couldn't have gotten to this point, where that you our investors.
unknown: I would like to help spread the hope. Please go to the contact US page on our website and asked us to send you a hope look okay.
unknown: Operator, we are ready to take questions from the audience.
David: Thank you David will now begin the question and answer session should you have a question. Please press star followed by one on your Touchtone falling you lose your prompt Jack Youre Han has been raised should you wish to decline from the polling process. Please press star followed by the Q if youre using.
David Jack: The speaker phone please lift your handset before pressing on this.
unknown: One moment please.
unknown: Yeah.
unknown: Your first question comes from the line of Tim Moore Your line is open.
unknown: Yes.
Tim Moore: Thanks, and great update.
Speaker Change: And our next one on one.
Tim Moore: Maybe just give us a rough timing frame on the a 300 person registrational trial enrollment.
Speaker Change: So it's been lined up for that more statistical significant sample size.
Speaker Change: Yeah.
Tim Moore: Well as you know Tim C diff.
Tim Moore: If that trial is needed.
Tim Moore: Uh huh.
Tim Moore: The trial is one that would be undertaken by our partner Allergan at their expense.
Allergan: And they'd be laying out.
Allergan: <unk> line.
Allergan: But we're also exploring whether the data that we already have in hand may give us a path to accelerated approval of <unk> hundred one for a narrower segment of patients those patients who can't tolerate the la Raza one class of drugs.
unknown: Because of the akathisia, who are at risk of suicide, and really who have no no.
Speaker Change: No therapeutic alternatives.
Speaker Change: So.
Speaker Change: It's really a question of yield can we help.
Speaker Change: Some patients in urgent need right away, while all Virgin yourself to do the much larger.
Speaker Change: Phil.
Speaker Change: That makes sense.
Speaker Change: Helpful.
Phil: And I know that you had what three manufacturing lots initiate it.
Phil: So I know the press release I think mentioned July.
Phil: And is it still maybe a realistic goal.
Phil: For the NDA that seems like it's still on track.
Speaker Change: So as you as you pointed out we have said in the past there was a 1 million pills.
Speaker Change: What's called GMP or good manufacturing practices drug.
Speaker Change: In our warehouse that alchemy in North Carolina.
Speaker Change: And.
Speaker Change: Really by the end of the summer.
Speaker Change: We should be able to submit what's called the module three of our new drug application for <unk> hundred one.
Speaker Change: It's a drug that's been granted breakthrough therapy designation by the FDA and therefore, we're entitled to submit the NDA in parts, that's called Rolling in your view.
Speaker Change: So we expect to kick off that process in the fall.
Speaker Change: And.
Speaker Change: At this point, we've got two years of real time stability. We expect that this is a stable oral form drug that will have five years of room temperature shelf stability.
Speaker Change: That's terrific Thats really it.
Speaker Change: Good to hear and my last question is you know.
Speaker Change: Data is coming soon from that 200 person Vod funded trial or Dcs.
Speaker Change: And what are you kind of looking for to see the most and that data from northwestern.
Speaker Change: Getting too specific but just in general.
Speaker Change: Well, yes, if we knew the answer it wouldn't be a trial.
Speaker Change: But what we do know is what they published in 2016 and in 2016.
Speaker Change: They showed.
Northwestern University: The way they reported the data it was by week of treatment, but they did a trial where each week the escalated the amount of Dcs necessary and the patient was getting and once they reached 400 milligrams a day of Dcs with Syrian they saw a.
Speaker Change: And analgesic effect, which in plain English is a pain relieving effect that was really as good as the effect that you would expect to see with an oral opioid but of course <unk> is completely non addictive. It doesn't have any of the opioid side effects.
Speaker Change: Even if even if an opioid deaths and addictive constipation is intolerable to some people.
Speaker Change: The clouding of your mental judgment is intolerable to some people. These type of serine doesn't do any of that so our view.
Speaker Change: Instead of a 200 person trial simply replicate.
Speaker Change: The findings of their 2016 phase Iia trial.
Speaker Change: Yes.
Speaker Change: That's an approvable kind of effect, that's the kind of effect that would make people want to use <unk>.
Speaker Change: In preference to the opioid drugs and certainly in preference to the you know sort of Tylenol advil.
Speaker Change #100: Class of drugs.
Speaker Change: Now 400 milligrams a day.
Speaker Change: Is really at the low end of the therapeutic range for <unk>.
Speaker Change: The original patents that we stand on filed by Dan Jab. It show that <unk> doesn't even have a common NMDA antagonist until you crossed the 400 milligram a day threshold, but we can take this drug up to 1000 milligrams a day.
Dan Jab: So there is ample reason to believe that if the northwestern trials shows any meaningful benefit at the 400 milligram a day dosage that theres room for substantially more efficacy.
Speaker Change #105: Are we to take it to a higher doses. So we can't wait to see the data.
Speaker Change #110: And from talking to the investigators at northwestern and they can't wait to see it either.
Speaker Change #103: Okay. That's really helpful color I appreciate the elaboration on that and I'll save my remaining questions for a conference tomorrow. Thanks a lot.
Edward: Our next question comes from the line of Edward Your line is open.
Edward Your: Yes. Thank you for taking my question and congratulations on all the progress. My question is specifically on the UTI indication you mentioned that you guys are looking for partners partnerships well what is the market like that is it pretty receptive as a slowdown.
Speaker Change #107: Is there any timeline that you could possibly share with us. Thank you.
Edward: Well in talking to investors.
Investor: I have yet to be in a room full of investors, where somebody doesn't have a friend or a relative.
Investor: <unk> went to the Doctor with a urinary tract infection that first line drugs MAU trend sorry backstrom.
Investor: Okay.
Speaker Change #111: Amoxicillin those drugs didn't work.
Speaker Change #106: Wound up an inexpensive antibiotics and an antibiotic that caused some problems and frequently they wind up on IV antibiotics.
Investor: We have an investor whose wife started out with what should have been.
Investor: Fairly straightforward UTI wound up in the hospital for three weeks with C difficile.
Investor: There is enormous receptivity.
Investor: Among urologists among.
Investor: Gynecologist.
Speaker Change #108: For antibiotics that can treat these more aggressive urinary tract infections, and we're talking 3 million infections, a year, there's 15 million people each year get urinary tract infection and at this 0.15th of those $3 million a year.
Speaker Change #109: Have these complicated utis that can go in some very ugly directions.
Speaker Change #113: I'd like to take a moment to acknowledge the really terrible loss, we suffered last week professor Michael <unk>.
Speaker Change #113: Was the.
Speaker Change #115: Instead of urology at George Washington University.
Michael <unk>: Head of urology for Glaxo, Smithkline and became our guiding light on urology passed away last week, but the people he brought to us on our urology advisory border some of the top people in the country.
Speaker Change #115: And they all tell us.
Speaker Change #119: That theres enormous need for a safe oral antibiotics, because too many of the cdti drugs or intravenous as safe oral antibiotics that patients can take four urinary infection without.
Speaker Change #117: Our likelihood of getting C difficile without a likelihood of getting a vaginal yeast infection without the kind of.
Speaker Change #118: Unpleasant symptoms that these ultra strong antibiotics cause people that all of us know about.
Speaker Change #114: So thats where were pointing to but at the same time.
Speaker Change #121: Unlike suicidal depression, where there are really only 1600 psychiatrists in the United States to treat those patients.
Speaker Change #120: And there are people that were increasingly getting to know and people, whom we can reach out and talk too much.
Speaker Change #114: Much much broader range of doctors.
Speaker Change #114: Treat patients with complicated UTI.
Speaker Change #122: Therefore, we really need a partner who already talks to those doctors because for a company our size to spin up a sales force and try to address.
Speaker Change #122: 30, or 40000 doctors or more.
Speaker Change #122: Wouldn't be feasible. So thats why were actively looking for a partner who is already.
Speaker Change #122: In that business already knows the doctors.
Speaker Change #122: Because we know that the doctors and the patients are looking for the treatment.
Speaker Change #122: Okay.
Ed: Great well, thanks for answering my questions and I wish you guys. Good luck. Thank you. Thanks Ed.
Speaker Change #125: Your next question comes from the line of David King Sir Your line is open.
Speaker Change #126: Hi, Thanks for taking my question and congratulations on the remarkable progress.
David King: Back in November you shared that you had a problem with substantial underreported naked short interest.
David King: The number you gave then was a minimum one to one into half million shares.
Speaker Change #128: You also described at the upcoming dividend as among other things. It's one of the tools, you'll be using to dislodge those naked short positions.
Speaker Change #127: And you recently announced that you have for FCC enforcement leadership working.
Speaker Change #131: The brokerage is to first of all because the positions can you get the current estimate of actual short interest and can you say anything about any progress you're having with the brokerages.
Speaker Change #129: So I'm going to ask Matt to present, some of the numbers, but yeah. The thumbnail answer is.
Speaker Change #130: One to one 5 million shares is really just the tip of the iceberg, Matt why don't you talk about the research we've done.
Matt: Sure. Thanks, Jonathan.
Speaker Change #130: So David Thanks for the questions very good one so if you look at the bare youre asking about the bare minimum the bare minimum would be with NASDAQ reports on a biweekly basis and Thats about 500000 right now that's the only what's short through NASDAQ can report it appropriately.
Speaker Change #129: As some of the work we've done with share Intel and others has indicated there is very likely perhaps even as much as an order of magnitude.
Speaker Change #129: Sure.
Speaker Change #127: But multiple multiple multiple so actually.
Speaker Change #127: Multiple surpassed 500000 theres another set of data that are interesting as well that are available through certain certainly certain channels.
Speaker Change #127: And that is the intraday shorting, because every time, a trader, whether they're a computer or a person.
Speaker Change #127: There is a trade.
Speaker Change #127: They have to enter whether it's a buy sell or sell short or a cover just the four categories.
Speaker Change #127: And time ago, there were some lawsuits and some requests to the SEC to make the short sale information available for intra day trading.
Speaker Change #127: And we practice that we've been tracking that and getting that from some folks that have approached us.
Speaker Change #127: And something in the vicinity of 46% over the same period, they shared which was I think the March through the end of April we're short sales intra day now market makers are allowed to do that.
Speaker Change #127: As long as they cover during the day.
Speaker Change #127: And not recorded and not borrow but they have to cover by the end of the day, whether they do or not is a subject of a lot of speculation in that probably can fuel a good deal of unreported short.
Speaker Change #127: <unk>.
Speaker Change #133: I'll hand, it back to Jonathan for comment.
Speaker Change #135: Yeah. The question, we ask David is important.
Speaker Change #133: <unk>.
Jonathan Smith: And the short interest.
Speaker Change #137: Is impressive, but it's important to recognize that somebody is selling our stock short is essentially betting that were going to fail to get the data and go out of business.
Jonathan Smith: And therefore there'll be able to.
Jonathan Smith: Buyback their short position for almost nothing.
Jonathan Smith: And the best way to really disappoint in short sellers to succeed.
Jonathan Smith: And.
Jonathan Smith: That's what we aim to do.
Jonathan Smith: And I think over the last quarter.
Jonathan Smith: We've turned some corners that may start to help our shareholders recognize that not only do we aim to succeed but we're in the processes of succeeding.
Speaker Change #140: And if people want to invest their hard earned money and betting against us.
Jonathan Smith: Shorting our stock.
Speaker Change #136: Uh huh.
Speaker Change #136: We aim to help them lose their money.
Speaker Change #136: Sure.
Speaker Change #139: Thanks for those answers.
Jonathan Smith: Okay.
Jonathan Smith: There are no further questions at this time I will turn the call back to you Matt.
Matt: Thank you Joseph and thank you everyone for joining us today.
Matt: For the conference call. We appreciate your support your interest and are always interested in hearing your questions and feedback through our web site as well have a good evening.
Speaker Change #138: Thank you everyone for participating you may now disconnect.
Speaker Change #138: Yes.
Jonathan Smith: Okay.
Jonathan Smith: Yeah.
Jonathan Smith: No.
Jonathan Smith: Okay.
Jonathan Smith: No.
Jonathan Smith: Okay.
Jonathan Smith: Sure.
Jonathan Smith: Yes.