Q2 2024 NeuroMetrix Inc Earnings Call
Amy: Good morning and welcome to the NeuroMetrix second quarter 2024 business and financial update. My name is Amy and I will be your moderator on the call.
Amy: My name is Amy, and I will be your moderator on the call. On this call, the company may make statements that are not historical facts and are not considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are predictive in nature that depend upon or refer to future events or conditions are forward-looking statements. Any forward-looking statements reflect NeuroMetrix's current views about future results of operations and other forward-looking information.
Speaker Change: On this call, the company may make statements which are not historical facts and are not considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995.
Speaker Change: Statements that are predictive in nature, that depend upon or refer to future events or conditions, are forward-looking statements. Any forward-looking statements reflect current views of NeuroMetrix about future results of operations and other forward-looking information.
Amy: You should not rely on forward-looking statements because actual results may differ materially as a result of a number of important factors, including those set forth in the earnings release issued earlier today. Please refer to the risks and uncertainties, including the factors described under the heading risk factors in the company's periodic filings with the SEC, available on the company's investor relations website at neurometrics.com and on the SEC's website at sec.gov. Neurometrics does not intend and undertake no duty to update the information disclosed on this conference call. I'd now like to introduce Neurometrics' Senior Vice President and Chief Financial Officer, Mr. Thomas Higgins. Mr. Higgins
Speaker Change: You should not rely on forward-looking statements because actual results may differ materially as a result of a number of important factors.
Speaker Change: including those set forth in the earnings release issued earlier today.
Speaker Change: Please refer to the risks and uncertainties, including the factors described, under the heading Risk Factors, in the company's periodic filings with the SEC available on the company's Investor Relations website at neurometrics.com.
Speaker Change: and on the SEC's website at sec.gov. NeuroMetrix does not intend and undertake no duty to update the information disclosed on this conference call. I'd now like to introduce NeuroMetrix Senior Vice President and Chief Financial Officer, Mr. Thomas Higgins. Mr. Higgins? Thank you.
Thomas Higgins: Thank you, Amy, and welcome to our Q2 2024 business update. For those of you unfamiliar with us, we are a commercial stage medical device company developing and commercializing neurotechnology devices to address unmet needs in the chronic pain and diabetes market. Our products are wearable or handheld devices enabled by proprietary consumables and software solutions including mobile apps, enterprise software, and cloud-based systems. We currently have two commercial products. Quell is our wearable neuromod platform currently addressing chronic pain related to fibromyalgia and also related to lower extremity chronic pain. There are multiple emerging indications including CIPN, long COVID, chronic low back pain, chronic overlapping pain conditions, and others. DPN Check is our point of care screening test for peripheral neuropathy, particularly focused on diabetes.
Thomas Higgins: Thank you, Amy, and welcome to our Q2 2024 business update.
Speaker Change: For those of you unfamiliar, we are a commercial stage medical device company developing and commercializing neurotechnology devices to address unmet needs in the chronic pain and diabetes markets.
Speaker Change: Our products are wearable or handheld devices enabled by proprietary consumables and software solutions including mobile apps, enterprise software, and cloud-based systems.
Speaker Change: We have two commercial products, Quell is our wearable neuromod platform currently addressing chronic pain related to fibromyalgia and also related to lower extremity chronic pain.
Speaker Change: There are multiple emerging indications, including CIPN, long COVID, chronic low back pain, chronic overlapping pain conditions, and others.
Speaker Change: DpnCheck is our point-of-care screening test for peripheral neuropathy, particularly focused on diabetes. DpnCheck is our point-of-care screening test for peripheral neuropathy, particularly focused
Thomas Higgins: Our business model is razor razor blade with aftermarket sales as the primary financial objective and currently representing about two-thirds of our revenue. At current scale, we are adequately funded with approximately $16.4 million in liquid assets and quarterly cash usage of about 1.4 million, which we plan to further decrease going forward. Our capital structure is simple, debt-free, and common stock based.
Speaker Change: Our business model is razor razor blade with aftermarket sales as the primary financial objective and currently representing about two-thirds of our revenue.
Speaker Change: At current scale, we are adequately funded with approximately $16.4 million in liquid assets and quarterly cash usage of about $1.4 million, which we plan to further decrease going forward.
Speaker Change: Our capital structure is simple, debt-free, and common stock-based.
Thomas Higgins: Today, we reported Q2 revenue of $769,000. This was a drop from $1,656,000 in the second quarter of 2023, and this drop was anticipated. The DPNcheck product line accounted for the entire revenue decline. As previously discussed, CMS rule changes in Medicare Advantage initiated early last year, 2023, encompassed a two-year phase-out of risk adjustment compensation to health care providers for a range of patient screenings, including peripheral neuropathy. This is the second and final year of that timetable.
Speaker Change: Today we reported Q2 revenue of $769,000. This was a drop from $1,656,000 in the second quarter of 2023, and this drop was anticipated.
Speaker Change: The DPN check product line accounted for the entire revenue decline.
Speaker Change: As previously discussed, CMS rule changes in Medicare Advantage initiated early last year, 2023.
Speaker Change: encompassed a two-year phase-out of risk adjustment compensation to health care providers for a range of patient screenings including peripheral neuropathy.
Thomas Higgins: As would be expected, many providers have curtailed this activity. We are working to identify domestic DPN check interest in potential new markets and are pursuing several attractive opportunities. However, the ultimate outcome of our efforts is uncertain at this point.
Speaker Change: This is the second and final year of that timetable.
Speaker Change: As would be expected, many providers have curtailed this activity.
Speaker Change: We are working to identify domestic DPN check interest in potential new markets and are pursuing several attractive opportunities.
Speaker Change: The ultimate outcome of our efforts is uncertain at this point.
Thomas Higgins: The Qualproduct line, however, continues to post revenue growth. QUEL revenue in Q2 of $192,000 was a year-on-year gain of 47%. While Quell Revenue is a relatively small contributor, its growth rate provides an encouraging indication of future potential. Our careful strategic launch of Qualibromyalgia in 2023 and earlier this year has been quite effective in building market knowledge while controlling spending on sales and marketing activities. The legacy product, ADVANCE for Peripheral Neuropathy, completed a planned phase-out and was terminated as of July 31st, 2024.
Speaker Change: The Qualproducts line, however, continues to post-revenue growth.
Speaker Change: QUEL revenue in Q2 of $192,000 was a year-on-year gain of 47%.
Speaker Change: While QWEL revenue is a relatively small contributor, its growth rate provides an encouraging indication of future potential.
Speaker Change: Our careful strategic launch of Quell Fibromyalgia in 2023 and earlier this year has been quite effective in building market knowledge while controlling spending on sales and marketing activities.
Speaker Change: The legacy product, ADVANCE for Peripheral Neuropathy, completed a planned phase-out and was terminated as of July 31, 2024.
Thomas Higgins: Gross profit in the quarter was $492,000. This reflects a gross margin rate of 64%, which at 360 basis points lower was generally in the margin range of the second quarter of last year. Individual product gross margins in the quarter were stable for DPN check, which is in the 80% range, and improving for Quell, where growth has pushed the margin rate into positive territory at 36% and trending upward.
Speaker Change: Gross profit in the quarter was $492,000. This reflects a gross margin rate of 64%, which at 360 basis points lower was generally in the margin range of the second quarter of last year.
Speaker Change: Individual product gross margins in the quarter were stable for DPN Check, which is in the 80% range, and improving for Quell, where growth has pushed the margin rate into positive territory at 36% and trending upward.
Thomas Higgins: Of course, the overall margin of 64% was adversely impacted by the effect of reduced sales volume on indirect cost absorption. Operating expenses in the quarter totaled $2.3 million, down about 422,000, or down 15% from the prior year quarter. The spending drop reflects the effects of a Q1 2024 reduction in force, which going forward will reduce personnel costs by over a half a million dollars per quarter. Savings in Q2 were partially offset by professional service costs associated with our ongoing strategic review process.
Speaker Change: Of course, the overall margin of 64% was adversely impacted by the effect of reduced sales volume on indirect cost absorption.
Speaker Change: Operating expenses in the quarter totaled $2.3 million.
Speaker Change: down about 422,000 or down 15% from the prior year quarter.
Speaker Change: The spending drop reflects the effects of a Q1 2024 reduction in force, which going forward will reduce personnel costs by over a half a million dollars per quarter.
Speaker Change: The savings in Q2 were partially offset by professional service costs associated with our ongoing strategic review process.
Thomas Higgins: The net loss in the quarter was $1,488,000 or $0.74 a share, a small improvement of about $50,000 from a net loss of $1,005,000 in the second quarter of last year. Operating cash usage in the quarter was approximately 1.4 million, lower again by about 90,000 from Q2 of 2023. Working capital at the end of the quarter was $16.9 million, and we ended the quarter with liquid assets of $16.4 million. Now, for the comments of Dr. Shai Gozani, our founder and CEO.
Speaker Change: Net loss in the quarter was $1,488,000 or 74 cents a share, a small improvement of about $50,000 from a net loss of $1,005,000 in the second quarter of last year.
Speaker Change: Operating cash usage in the quarter was approximately 1.4 million, lower again by about 90,000 from Q2 of 2023. Working capital at the end of the quarter was 16.9 million, and we ended the quarter with liquid assets of 16.4 million.
Speaker Change: And now for the comments of Dr. Shai Gozani, our founder and CEO .
Shai Gozani: Let me start by providing an update on the review of strategic options that we announced in February of this year. Our goal was and remains to consider all reasonable opportunities to maximize shareholder value. Over these past six months, we have invested considerable time, effort, and resources in this process. In terms of specific activities, we have been conducting an extensive survey of potential transactions in collaboration with our financial advisors, and several of these have led to detailed diligence. However, thus far, the board has determined that none of these opportunities are in the best interest of shareholders at this time.
Shai Gozani: Thank you, Tom.
Shai Gozani: Let me start by providing an update on the review of strategic options that we announced in February of this year.
Shai Gozani: Our goal was and remains to consider all reasonable opportunities to maximize shareholder value. Over these past six months, we have invested considerable time, effort, and resources in this process.
Shai Gozani: In terms of specific activities, we have been conducting an extensive survey of potential transactions in collaboration with our financial advisor, and several of these have led to detailed diligence. However, thus far, the Board has determined that none of these opportunities
Shai Gozani: As Tom noted, we implemented a substantial reduction in force at the end of the first quarter that lowered operating expenses on a going forward basis by over half a million dollars per quarter. This helps bring our revenue and OPEX into better alignment. We are actively exploring opportunities to monetize non-core assets to further offset cash consumption. And here, we are particularly focused on international markets that are not core to our U.S. focus.
Shai Gozani: are in the best interest of shareholders at this time.
Shai Gozani: As Tom noted, we implemented a substantial reduction in force at the end of the first quarter that lowered operating expenses on a going forward basis by over half a million dollars per quarter. This helps bring our revenue and OPEX into better alignments.
Shai Gozani: We are actively exploring opportunities to monetize non-core assets to further offset cash consumption. And here we are particularly focused on international markets that are not core to our U.S. focus.
Shai Gozani: In April, we engaged in discussions with one of our large shareholders that resulted in the addition of Joshua Horowitz as a new independent director, and we also, at that time, terminated our at-the-market ATM equity facility. Our plan is to continue the strategic review process while also efficiently operating the business and seeking to return to growth. There can be no assurance that this process will result in a company pursuing or consummating a particular transaction or other strategic outcome.
Shai Gozani: And in April , we engaged in discussions with one of our large shareholders that resulted in the addition of Joshua Horowitz as a new independent director. And we also, at that time, terminated our at-the-market ATM equity facility.
Shai Gozani: Our plan is to continue the strategic review process while also efficiently operating the business and seeking to return to growth.
Shai Gozani: There can be no assurance that this process will result in a company pursuing or consummating a particular transaction or other strategic outcome, and at this point we have not yet set a specific deadline for completing the process.
Shai Gozani: And at this point, we have not yet set a specific deadline for completing the process. Returning now to our operating... As Tom noted, we reported good year-over-year growth in our Quill business of 47% to around $200,000 in the second quarter. While the absolute number is modest, there are a number of encouraging signs. First, the growth was entirely from qual-fibromyalgia.
Shai Gozani: Returning now to our operating business.
Shai Gozani: As Tom noted, we reported good year-over-year growth in our Quail business of 47% to around $200,000 in the second quarter. While the absolute number is modest, there are a number of encouraging signs.
Shai Gozani: In fact, the over-the-counter business decreased as it has been in a commercial pause. We are now planning to restart the OTC business, which will give us two sources of growth going forward. We're planning to have both parts of the Quell business, fibromyalgia and OTC, active by the fourth quarter. Second, in addition to revenue, we saw good growth in the number of call starter kits sold. There were 540 sold in the quarter, which was 165% year-over-year growth, and we had 3,682 one-month refills of Coil Electrodes, which was 13% growth.
Speaker Change: First, the growth was entirely from qual-fibromyalgia. In fact, the over-the-counter business decreased as it has been in a commercial pause. We are now planning to restart the OTC business, which will give us two sources of growth going forward.
Speaker Change: We are planning to have both parts of the QWEL business, fibromyalgia and OTC, active by the fourth quarter.
Speaker Change: Second, in addition to revenue, we saw good growth in the number of Quill Starter Kits sold. There were 540 sold in the quarter, which was 165% year-over-year growth.
Speaker Change: And we had 3,682 one-month refills.
Shai Gozani: Again, this is with a plan drop in the OTC business that we should be able to reverse shortly. And third, we're starting to see uptake of Quelf fibromyalgia in the Veterans Administration health system. This is an exciting opportunity as the device and refills are attractively reimbursed.
Speaker Change: of coil electrodes, which was 13% growth. Again, this is with a plan drop in the OTC business that we should be able to reverse shortly.
Speaker Change: And third, we're starting to see uptake of Quelf fibromyalgia in the Veterans Administration Health System. This is an exciting opportunity as the device and refills are attractively reimbursed.
Shai Gozani: We are operating just a few VA centers at this time, but we'll be looking to grow steadily the rest of the year and expect to make the VA a core focus in 2025. We believe that we now have clarity on how to move forward with our CPN indication, CIPN standing for Chemotherapy Induced Peripheral Neuropathy.
Speaker Change: We are operating just a few VA centers at this time, but we'll be looking to grow steadily the rest of the year and expect to make the VA a core focus in 2025.
Speaker Change: We believe that we now have clarity on how to move forward with our CPN indication.
Speaker Change: CFPN standing for Chemotherapy Induced Peripheral Neuropathy.
Shai Gozani: We will make a de novo submission, or CIPN, by the fourth quarter of this year with a potential commercial launch by the end of 2025, and everything falls into place. If obtained, this indication will introduce QoL technology, as the device is likely to have a new branding, into the large and commercially attractive oncology market. As noted by Tom, the DPI check business suffered an expected year-over-year drop due to substantial changes to Medicare Advantage announced early last year.
Speaker Change: We will make a de novo submission.
Speaker Change: for CIPN by the fourth quarter of this year with a potential commercial launch by the end of 2025.
Speaker Change: if everything falls into place. If obtained, this indication will introduce Quell technology, as the device is likely to have a new branding into the large and commercially attractive oncology market.
Speaker Change: As noted by Tom, the DPI check business suffered an expected year-over-year drop due to substantial changes to Medicare Advantage announced early last year. 2024 is the final year of a phase-out of risk adjustment compensation for many types of patient screening, including peripheral neuropathy.
Shai Gozani: 2024 is the final year of risk-adjustment compensation for many types of patient screening, including peripheral neuropathy. While we expect that some of our MA customers will continue to utilize DPNCheck next year and beyond, it is imperative that we move into other markets. We are working on a number of attractive opportunities that have the potential to scale up the business again, but we are still at least several quarters from meaningful revenue from these newer channels.
Speaker Change: While we expect that some of our MA customers will continue to utilize DPMCheck next year and beyond, it is imperative that we rotate into other markets. We are working on a number of attractive opportunities that have the potential to scale up the business again, but we are still at least several quarters from meaningful revenue from these new channels. Hopefully,
Shai Gozani: Nevertheless, we hope to provide updates and announcements of pilots over the balance of this year as indicators of our progress. And on the scientific and clinical side, there were several prominent DPN chip abstracts presented at the Japanese Diabetes Society meeting in May 2024 and the ADA scientific meeting in June 2024. Those are our prepared comments, and we'd be happy to take questions now. Thank you.
Speaker Change: Nevertheless, we hope to provide updates and announcements of pilots over the balance of this year as indicators of our progress.
Speaker Change: And on the scientific and clinical side, there were several prominent DPN chip abstracts presented at the Japanese Diabetes Society meeting in May 2024 and the ADA scientific meeting in June of 2024.
Speaker Change: Those are our prepared comments, and we'd be happy to take questions now.
Operator: Thank you. At this time, we will conduct the question and answer session. As a reminder, to ask a question, you will need to press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again.
Speaker Change: Thank you. At this time, we will conduct the question and answer session. As a reminder, to ask a question, you will need to press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 1 again.
Operator: Please stand by. And our first question comes from the line of Jarrod Cohen with J.M. Cohen & Company. Your line is open.
Speaker Change: Please stand by.
Speaker Change: And our first question comes from the line of Jarrod Cohen with J.M. Cohen & Company. Your line is open.
Jarrod Cohen: Yeah, just a quick question. Just long term. I mean, I know you've talked about this so far for a long time. But how are you really going to grow the QWEL business since you have a DPM? Business is really dropping off to be somewhat substantial. Because years ago, if I'm correct, the Quell business was running on a quarterly basis over a million dollars a year. And I think you had grown it to, and on a gross margin basis, you had changed the business around so that it was running at a gross margin even over 50%. How can you get that?
Jared Cohen: Just a quick question, just long term, I mean I know you've talked about this so far for a long time, but how are you really going to grow the QWEL business since the BPM?
Speaker Change: Business is really dropping off.
Speaker Change: to be somewhat substantial, because years ago...
Speaker Change: If I'm correct, the QWEL business was running on a quarterly basis over a million dollars a year. And I think you had grown it to, and on a gross margin basis,
Speaker Change: You had changed the business around that it was running at a gross margin even over 50%. How can you get that? I know it's going to, as you said, to the veterans market and all that.
Shai Gozani: I know it's going to, as you said, the veterans market and all that, and opening up new markets besides. Fibromyalgia is still relatively new, and you're growing that. But yeah, how can you get it back to that and beyond? I mean, it takes time. I know that. But you've now been in the prescription market for two years, and you're still just not even back to, you know, you're still way less than you were two, four years ago. So I'm just, if you could just elaborate a little bit more, and it takes money also.
Speaker Change: and opening up new markets beside Fibromyalgia is still relatively, you're growing that. But yeah, how can you get it back to that and beyond? I mean, it takes time, I know that, but...
Speaker Change: You've now been in the prescription market for two years and
Speaker Change: And you're still just not even back, you know, you're still at way less than you were
Speaker Change: two, four years ago, so I'm just...
Speaker Change: if you could just elaborate a little bit more, and it takes money also, so.
Shai Gozani: Yeah, thanks for the question, Jarrod. So, you know, we've been in the prescription market for about six quarters. But as we've stated previously and really since we launched the product, we're being very methodical, deliberate in this. We have not invested heavily in the commercial side. We have one director of sales as part of our commercial team. We really want to understand the business and how to grow it efficiently before we invest significant cash in building that business.
Speaker Change: Yeah, thanks for the question, Jarrod. So, you know, so we've been in the prescription market for about six quarters.
Speaker Change: But as we've, you know, as we've stated previously and really since we launched the product, we're being very methodical and deliberate in this. So, you know, we have not invested heavily on the commercial side. We have one
Speaker Change: one director of sales as part as our commercial team. We really want to understand the business and how to grow it efficiently before we invest.
Shai Gozani: So, the answer to your question is that the growth opportunity is there, but we wanted to be extremely careful about how we approached this market and wanted to understand it very thoroughly before we invested. So, as an example, we've been understanding the VA market, and now that we have a clear idea of how to penetrate the VA, we're starting to add contract reps, so not direct sales reps, but contract reps who are compensated on a variable basis. So, it's at www. NeuroMetrix.com
Speaker Change: significant cash should build in that business.
Speaker Change: The answer to your question is, the growth opportunity is there.
Speaker Change: But we wanted to be extremely careful about how we approach this market.
Speaker Change: and wanted to understand it very thoroughly before we invested. So, as an example, we've been understanding the VA market, and now that we have a clear idea of how to penetrate the VA, we're starting to add.
Speaker Change: Contract reps, so not direct sales reps, but contract reps who are compensated on a variable basis.
Speaker Change: There's no structural cost associated with that, and we believe that will rapidly grow as well as in the commercial market.
Speaker Change: The answer to your question is the growth opportunity is there, but we've been very methodical in deciding how to make the investments, and we're at the point now where I think we're ready to start increasing those investments and we'll see concomitant growth.
Shai Gozani: Okay, and I guess it's just going about what the product's always been about. I mean, it's not a cure, but there are really, the side effects are very minimal, right? It's a pain relief product, right? All right.
Speaker Change: Okay, and I guess it's just going about what the product's always been about. I mean, it's not a cure, but there's really the side effects are very minimal, right? It's just a pain relief product, right?
Shai Gozani: Thank you, it's symptom relief. So qual fibromyalgia has a broad indication for relief of qual fibromyalgia symptoms beyond pain, but right, obviously, pain is a big one. The feedback from the market has been excellent. So we're quite confident that the product is effective in fibromyalgia, both from our clinical work and now from our commercial experience. And as you said, there are no, you know, there are really very few options for these patients, particularly with the safety profile that qualified fibromyalgia offers.
Speaker Change: it's symptom relief. So it's a quail fibromyalgia has a broad indication for relief of quail fibromyalgia symptoms beyond pain but right obviously pain is this is a big one.
Speaker Change: The feedback from the market has been excellent, so we're quite confident that the product is effective in fibromyalgia, both from our clinical work and now from our commercial experience.
Speaker Change: And, as you said, there really are very few options for these patients, particularly with the safety profile that qualified fibromyalgia offers. And then beyond fibromyalgia...
Shai Gozani: And then, you know, and then beyond fibromyalgia. As we noted, we're ready to restart the over-the-counter business for low-extremity chronic pain, which is a business we think we can grow cost-effectively to complement colorectal fibromyalgia. And then we have the additional indications that we've talked about, including for chemotherapy. So we're quite optimistic, but we're going to be methodical in how we build these businesses. So it will take time, but we should see strong signs of growth and improved gross margin on a quarter-by-quarter basis.
Speaker Change: As we noted, we're ready to restart the over-the-counter business for low-extremity chronic pain, which is a business we think we can grow cost-effectively to complement coliform myalgia, and then we have the additional indications.
Speaker Change: that we've talked about, including for chemotherapy. So we're quite optimistic, but we're going to be methodical.
Speaker Change: and how we build these businesses. And so it will take time, but we should see, on a quarter by quarter basis, strong signs of growth and improved gross margins.
Shai Gozani: Okay. I know you probably don't want to talk about it, but the OTC market: are you going to do it differently than you did before in terms of whether you go through stores or online or so forth, or are you still trying to figure that part out?
Speaker Change: Okay, I know you probably don't want to talk about it, but the OTC market, are you going to do it differently than what you did before, in terms of how you, whether you go through stores or online or so forth, or are you still trying to figure that part out?
Shai Gozani: No, I mean, that will be, that will be pretty much exclusively online through our e-commerce site. We will consider going back on Amazon, but we're really looking carefully at margins and the attractiveness of bricks and mortar retail, which we were in, as you know, is access and distribution, but the margins are not nearly as attractive. So at least, for the foreseeable future, it'll be purely e-commerce.
Speaker Change: No, I mean, that will be, that will be.
Speaker Change: It's pretty much exclusively online through our...
Speaker Change: our e-commerce site, we will consider going back on Amazon. But we're really looking carefully at margins and the attractiveness of bricks-and-mortar retail, which we were in, as you know,
Speaker Change: is access and distribution, but the margins are not nearly as attractive. So, at least...
Jarrod Cohen: Okay. All right. Thank you very much. If you'd like to ask a question...
Speaker Change: For the foreseeable future, it'll be purely e-commerce.
Speaker Change: Okay. All right. Thank you very much.
Operator: If you'd like to ask a question, please press star 11 on your telephone. Again, that is star 11 on your phone. And I'm not taking any further questions at this time. I would now like to turn it back to Dr. Gozani for closing remarks.
Darren: Sure, Darren.
Speaker Change: If you'd like to ask a question, please press star 11 on your telephone.
Speaker Change: Again, that is star 11 on your phone.
Speaker Change: Shai Gozani, Thomas Higgins
Speaker Change: And I'm showing no further questions at this time. I would now like to turn it back to Dr. Gozani for closing remarks.
Shai Gozani: Thank you very much for joining us today, and we look forward to keeping you updated as we get through the balance of the year.
Shai Gozani: Thank you very much for joining us today and we look forward to keeping you updated as we get through the balance of the year. Thank you.
Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.
Speaker Change: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.