Q4 2024 Tenon Medical Inc Earnings Call
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Greetings and welcome to the China Medical fourth quarter, and full year of 2024 financial results and corporate update conference call.
Speaker Change: As a reminder, this call is being recorded your host today are Steve Foster President and Chief Executive Officer, and Kevin Williamson Chief Financial Officer.
Operator: Foster, President and Chief Executive Officer, and Kevin Williamson, Chief Mr. Foster and Mr. Williamson will present. of Operations for the fourth quarter and full year ended December 31st, 2024, and provide a corporate The 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'd like to remind everyone that statements made on the call and webcast may include predictions, estimates, and other information. Well, these four looking statements represent our current judgment on what the future holds. They are subject to risks and uncertainty that could cause actual results to differ.
Mr Foster and Mr. Williamson will present results of operations for the fourth quarter and full year ended December 31st 2024, and provide a corporate update.
Speaker Change: First of all we see telling these results recently released today and is available on the Investor Relations section of our company's website Www Dot dot.
Speaker Change: Dot com.
Speaker Change: Before we begin the formal presentation I'd like to remind everyone that statements made on the call and webcast may include predictions estimates and other information that may be considered forward looking.
Speaker Change: 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 may differ materially.
Operator: You are cautioned not to place undue reliance on these forward-looking statements, which reflect our opinions only as of the date in which they were issued. Please keep in mind that we're not obligating ourselves to revise or publicly release the results. Reservation of these four statements in light of new information.
Speaker Change: 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.
Speaker Change: Please keep in mind that we're not obligating ourselves to revise or publicly release the results of any maybe.
Speaker Change: Which of these forward looking statements in light of new information or future events throughout today's discussion will attempt to present, some important factors relating to our business and they affect our predictions.
Operator: Discussion. We'll attempt to Center.
Operator: Thank you. and ASI.
Operator: For a more complete discussion of these factors and other risks, you should review our quarterly and annually report on file with the Securities and Exchange Commission at www.sec.gov.
Speaker Change: For a more complete discussion of these factors and other risks you should review our quarterly and annual reports on file with the Securities and Exchange Commission at Www Dot Dot.
Dot Gov.
Steve Foster: At this time, I'll turn it over to Tenon Medical's Chief Executive Officer, Steve Foster. Thank you, Matt. And good afternoon, everyone. I'm pleased to welcome you to today's fourth quarter and full year 2024 financial results in corporate update conference call for Tenon Medical. Our initiative throughout 2024 to restructure and invest in our sales marketing program to build market share for a proprietary catamaran system led the company to generate revenue growth of 12% to $3.3 million for the full year of 2024. Additionally, gross margin improved by 10 percentage points to 52% as compared to 42% in the same year-ago period, driven by increases in revenue per surgical procedure.
Speaker Change: At this time I will turn the call over to 10 on Medical's, Chief Executive Officer, Steve Foster. Please go ahead.
Speaker Change: Thank you, Matt and good afternoon, everyone I'm pleased to welcome you to today's fourth quarter and full year 2024 financial results and corporate update conference call for 10 on medical.
Speaker Change: Our initiatives throughout 2024 to restructure it and invest in our sales and marketing program to build market share for our proprietary catamaran system led the company to generate revenue growth of 12% to $3 $3 million for the full year of 2024.
Speaker Change: Additionally, gross margin improved by 10 percentage points to 52% as compared to 42% in the same year ago period, driven by increases in revenue per surgical procedure.
Steve Foster: During the fourth quarter, we experienced a revenue decline of 4.7% over the prior year quarter, primarily due to reimbursement pre-authorization headwinds that we believe to be transient in nature. We expect future coding clarity combined with our recently published clinical data will positively impact these issues going forward. As we move towards sustainable revenue growth, our stable cost structure is expected to maintain a gross margin performance at recent levels and improve with increases in revenue.
Speaker Change: During the fourth quarter, we experienced a revenue decline of 4.7% over the prior year quarter.
Speaker Change: Primarily due to reimbursement preauthorization headwinds that we believe to be transient in nature.
Speaker Change: We expect future coding priority combined with our recently published clinical data will positively impact these issues going forward.
Speaker Change: As we move towards sustainable revenue growth our stable cost structure is expected to maintain our gross margin performance at recent levels and improve with increases in revenue.
Steve Foster: In the fourth quarter, we completed the alpha clinical review of our catamaran SE platform. a second generation and smaller version of our implant and access placrod. The SE extends the line of implant offerings for physicians preferring a smaller catamaran implant and access profile when performing SI joint fusion procedures. During the alpha clinical review, we found that the features of SE are well-received across physician specialties and applications. In particular, the low profile of Bessie provides a significant flexibility for the physician when doing an SI revision.
Speaker Change: In the fourth quarter, we completed the Alpha clinical review of our Catamaran SC platform.
Speaker Change: Second generation and smaller version of our implant and access port problem.
Speaker Change: Yes. He extends the lineup implant offerings for physicians, preferring a smaller catamaran implant and excess profile when performing Si joint fusion procedures.
Speaker Change: During the Alpha clinical review, we found that the features are best seen are well received across physician specialties and applications.
Speaker Change: In particular, the low profile of Bassi provides a significant flexibility for the physician when doing it S I revision.
Steve Foster: full commercial launch of SE is slated for mid-year 2025. Underscoring our technical advances, we received three U.S. patents during the fourth quarter related to our catamaran portfolio. These patents cover advanced coatings designed to enhance bone ingrowth and fusion, as well as innovative configurations that facilitate the revision of failed SI joint procedures. These advancements allow for the use of an alternative device without requiring the removal or modification of the original surgical implant. This continued development of our intellectual property portfolio improves our competitive position in the industry and protects the overall portfolio. Catamaran SI Joint Fusion System Intellectual Property Portfolio now includes 12 issued U.S.
Speaker Change: The full commercial launch of SCE is slated for mid year 2025.
Speaker Change: Underscoring our technical advances we received three U S patents during the fourth quarter related to our cat catamaran portfolio.
Speaker Change: These patents cover advanced coatings designed to enhance bone in growth in fusion is.
Speaker Change: Well as innovative configurations, facilitating the revision of failed Si joint procedures.
Speaker Change: These advancements allows the use of an alternative device without requiring the removal or modification of the original surgical implant.
Speaker Change: This continued development of our intellectual property portfolio improves our competitive position in the industry.
Speaker Change: Protects the overall portfolio.
Speaker Change: The catamaran Si joint fusion system intellectual property portfolio. Now includes 12 issued U S and foreign patents, along with 23 pending U S and foreign patent applications.
Steve Foster: and foreign patents, along with 23 pending U.S. and foreign patent applications.
Steve Foster: Tenon is committed to funding and executing clinical research that reinforces the clinical safety and effectiveness of our technology. Our post-market study, called MAINSAIL, is Tenon's prospective, multi-center, single-arm study that evaluates clinical outcomes of patients with sacroiliac joint disruptions or degenerative sacroilitis treated with the catamaran SI joint fusion system. Patients will be evaluated for a period of up to 24 months, reviewing various patient-reported outcomes, radiographic assessments, and adverse events. In short, the data collected aims to show that the catamaran system delivers on its promise.
Speaker Change: Hi, mom has committed to funding and executing clinical research that reinforces the clinical safety and effectiveness of our technologies.
Speaker Change: Our post market study called Mainsail is 10 ounce postpartum multi center single arm study.
Speaker Change: Ali weights clinical outcomes of patients with sacroiliac joint disruptions or degenerative sacral lightest treated meter catamaran Si joint fusion system.
Speaker Change: Patients will be evaluated for a period of up to 24 months, we deal with varies patient reported outcomes radiographic assessments and adverse events.
David: Sure David.
Speaker Change: Collecting aims to show catamaran system delivers on its promises.
Steve Foster: Tenon announced the first peer-reviewed publication of our interim analysis from the main sale study in the third quarter of 2024. This interim analysis presents early experiences and the first 33 consecutive patients treated with the Catamaran SI joint fusion system across six US clinical sites. primary and secondary clinical endpoints analysis at six months and radiographic CT fusion assessment performed by independent reviewers at 12 months. Notable outcomes from this interim analysis include statistically significant reduction in SI joint pain and disability scoring at six months. a robust safety profile, and high patient satisfaction throughout all follow-up time periods.
Speaker Change: China and announced the first peer reviewed publication of our interim from interim analysis from the main cell study in the third quarter of 2024.
This interim analysis presents early experiences in the first 33 consecutive patients treated with the catamaran Si joint fusion system across six U S clinical sites with primary and secondary clinical endpoints analysis at six months and radio graphic CTG is an assessment performed by.
Speaker Change: Reviewers at 12 months.
Speaker Change: Notable outcomes from this interim analysis include statistically significant reduction in SA joint pain and disability, scoring at six months.
Speaker Change: A robust safety profile and high patient satisfaction throughout all follow up time points.
Steve Foster: Results provided definitive evidence of fusion response at 12 months and efficient surgical technique and procedural workflow. This peer-reviewed analysis reinforces that the catamaran system's minimally invasive inferior posterior approach is safe and effective in the objective of relieving pain and reducing disability in adult patients diagnosed with SI joint disruptions or degenerative sacralitis that failed non-surgical treatment. Early results and evaluations solidify our thesis that the Catamaran's unique design and less invasive inferior posterior approach is functioning as intended to optimize patient outcome. Of note, the interim data from our study and the over 1,000 surgeries performed to date with the catamaran system demonstrate its exceptional safety profile, benefiting physicians and the patients that they treat.
Speaker Change: Results provided definitive evidence of fusion response at 12 months and efficient surgical technique and procedural workshop.
Speaker Change: This peer reviewed analysis reinforces the catamaran systems, a minimally invasive into post your approach is safe and effective and the objective of relieving pain and reducing disability and adult patients diagnosed with LSI joined disruptions were generally sicker lightest failed nonsurgical treatment.
Speaker Change: Early results and evaluation solidify our thesis catamaran unique design and less invasive and to your post your approach is functioning as intended to optimize patient outcomes.
Speaker Change: Of note the interim data from our study and the over 1000 surgeries performed to date with the catamaran system demonstrate its exceptional safety profile managing benefiting physicians.
Speaker Change: Patients that they treat.
Steve Foster: The importance of this clinical research for the company cannot be overstated. It will be compelling for treating physicians and payers alike within a market segment that is lacking peer-reviewed data. While innovative technologies are exciting for treating physicians, clinical research is required to reinforce the value proposition of the technology. Additionally, this data sets our foundation to achieve positive coverage throughout the payer network.
Speaker Change: The importance of this clinical research for the company cannot be overstated, it will be compelling for treating physicians and payers alike with in a mark to market segment that is lacking peer reviewed data.
Speaker Change: While innovative technologies are exciting for treating physicians clinical research is required to reinforce the value proposition of the technology.
Speaker Change: Additionally, this data sucks, our foundation to achieve positive coverage throughout the payer network.
Steve Foster: We look forward to the publication of our next interim analysis, which remains imminent. Our ongoing workshop activities, led by a network of valued physician faculty, combined with the robust commercial infrastructure rebuild, have prepared us for rapid expansion going forward. We hosted 24 physicians and catamaran workshops during the fourth quarter of 2024 and had 93 for the full year of 2023. excuse me, 2024. Taken together, we entered 2025 with the right foundation and we are now focusing our investments on driving our top line via commercial expansion and focus on our workshop and training program.
Speaker Change: We look forward to the publication of our next interim analysis, which remains immuno.
Speaker Change: Our ongoing workshop activities led by a network of valued position faculty combined with the robust commercial infrastructure rebuild have prepared us for rapid expansion going forward.
Speaker Change: We posted 24 positions in catamaran workshops during the fourth quarter of 2024.
Speaker Change: We had 93 for the full year of 2023.
Speaker Change: Excuse me 2024.
Speaker Change: Taken together, we entered 2025 with the right Foundation and we are now focusing our investments on driving our top line via commercial expansion and focus on our workshops and training programs.
Steve Foster: In addition, we will be finishing investments and launching our Catamaran SE platform, as well as completing the vital mainsail prospective study.
Speaker Change: In addition, we will be finishing investments in launching our catamaran as she platform as well as completing the vital mainsail prospective study.
Kevin Williamson: Without that, I'll turn it over to Kevin to discuss our financials in detail. Thank you, Steve. I will provide a summarized review of our financial results.
Speaker Change: With that I'll turn it over to Kevin to discuss our financials in detail.
Thank you Steve I'll provide a summarized review of our financial results. Our full breakdown is available in our press release that crossed the wire this afternoon.
Kevin Williamson: A full breakdown is available in our press release that crossed the wire this afternoon. Our revenue is $770,000 in the fourth quarter of 2024, a decrease of 4.7% compared to $808,000 in the fourth quarter of 2023. Revenue for the year ended December 31st, 2024, was $3.3 million, an increase of 12% compared to $2.9 million in the prior year period. The fluctuations in revenue for the three months and year ended December 31st, 2024, as compared to the same periods in 2023, were primarily due to a slight decrease and a flat trend, respectively, in the number of surgical procedures in which the catamaran system was used.
Kevin Williamson: Our revenue was 770000 in the fourth quarter of 2024, a decrease of 4.7% compared to 808000 in the fourth quarter of 2023.
Kevin Williamson: Revenue for the year ended December 31, 2024 was $3 3 million, an increase of 12% compared to $2 9 million in the prior year period.
Kevin Williamson: The fluctuations in revenue for the three months and year ended December 31, 2024, as compared to the same periods in 2023.
Kevin Williamson: We're primarily due to a slight decrease in a flat trend, respectively, and the number of surgical procedures in which the catamaran system was used.
Kevin Williamson: offset by an improved ASP, which was driven by account mix and market access effort. The number of procedures in the fourth quarter was impacted by the timing of our restructured sales force, as well as reimbursement, pre-authorization delays, leading to fewer surgeries performed during the quarter. With the investments made into our sales force training program and market access efforts, we believe the reimbursement impacts and timing of our sales force restructure experienced in Q4 will become tailwinds for us moving forward in combination with our new SE platform and clinical data initiative. Gross profit in the fourth quarter of 2024 was $353,000 or 46% of revenue compared to $559,000 or 69% of revenue in the fourth quarter of 2023.
Kevin Williamson: Offset by an improved a S T, which was driven by account mix and market access efforts.
Kevin Williamson: The number of procedures in the fourth quarter was impacted by the timing of our restructured sales force.
Kevin Williamson: As well as reimbursement preauthorization delays, leading to fewer surgeries performed during the quarter.
Kevin Williamson: With the investments made into our sales force training program and market access efforts, we believe the reimbursement impacts and timing of our sales force restructure experienced in Q4 will become tailwind for us moving forward in combination with our new <unk> platform and clinical data initiatives.
Kevin Williamson: Gross profit in the fourth quarter of 2024 was 353000 or 46% of revenue compared to 559000 or 69% of revenue in the fourth quarter of 2023.
Kevin Williamson: For the year ended December 31st, 2024, gross profit was $1.7 million or 52% of revenue, a significant improvement from gross profit of $1.2 million or 42% of revenue in the prior year period. Gross margin percentage varied from period to period, driven by the absorption of production overhead costs into our standard cost, with operating leverage created by lower fixed costs. Operating expenses totaled $3.5 million for the fourth quarter of 2024 as compared to expenses of $3.7 million in the fourth quarter of 2023. For the year ended December 31st, 2024, operating expenses totaled $15.5 million, compared to $17 million in the prior year period.
Kevin Williamson: For the year ended December 31, 2024, gross profit was $1 7 million or 52% of revenue a significant improvement from gross profit of $1 2 million or 42% of revenue in the prior year period.
Kevin Williamson: Gross margin percentage varied from period to period, driven by the absorption of production overhead costs into our standard cost with operating leverage created by lower fixed costs.
Kevin Williamson: Operating expenses totaled $3 5 million for the fourth quarter of 2024 as compared to expenses of $3 7 million in the fourth quarter of 2023.
Kevin Williamson: For the year ended December 31, 2024, operating expenses totaled $15 5 million compared to $17 million in the prior year period.
Kevin Williamson: Operating expenses decreased due to the restructuring of our sales operations in 2024 that temporarily reduced sales and marketing expenses and a decrease in research and development expenses. partially offset by an increase in general and administrative expenses. With continued investment and growth, including expanding our sales reach and prioritizing market access efforts and reimbursement and coverage initiatives, increases in sales and marketing expenses are expected in future quarters. Net loss was $3.1 million for the fourth quarter of 2024, flat as compared to the same period of 2023. For the year ended December 31st, 2024, net loss was $13.7 million compared to $15.6 million in the previous year period.
Kevin Williamson: Operating expenses decreased due to the restructuring of our sales operations in 2024 that temporarily reduced sales and marketing expenses and a decrease in research and development expenses, partially offset by an increase in general and administrative expenses.
Kevin Williamson: With continued investment in growth, including expanding our sales reach and prioritizing market access efforts and reimbursement and coverage initiatives.
Kevin Williamson: Increases in sales and marketing expenses are expected in future quarters.
Kevin Williamson: Net loss was $3 1 million for the quarter or for the fourth quarter of 2024 flat as compared to the same period of 2023.
Kevin Williamson: For the year ended December 31, 2024, net loss was $13 7 million compared to $15 6 million in the previous year period.
Kevin Williamson: While we expect to continue to improve our net loss, the company does expect to incur additional losses in the future. Now, turning to the balance sheet, as of December 31st, 2024, cash and cash equivalents totaled $6.5 million. That's compared to $2.4 million as of December 31st, 2023. We enter 2025 with a healthy balance sheet that is fortified with ample cash runway to accelerate investment in our growth initiatives, which was further boosted by $3 million in gross proceeds received from the capital raise last week.
Kevin Williamson: While we expect to continue to improve our net loss the company does expect to incur additional losses in the future.
Kevin Williamson: Now turning to the balance sheet as of December 31, 2024, cash and cash equivalents totaled $6 5 million as compared to $2 4 million as of December 31st 2023.
Kevin Williamson: We enter 2025 with a healthy balance sheet that has fortified with ample cash runway to accelerate investment in our growth initiatives, which was further boosted by $3 million in gross proceeds received from the capital raised last week.
Kevin Williamson: Lastly, as of December 31st, 2024, the company has no outstanding debt.
Kevin Williamson: Lastly, as of December 31, 2024, the company has no outstanding debt.
Steve Foster: I will now turn the call back to Steve for closing thoughts.
Kevin Williamson: I will now turn the call back to Steve for closing thoughts.
Operator: Looks like now we're 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. You may press star 2 to remove yourself. This means using speaker equipment, it may be necessary to pick up your handset before pressing the button.
Speaker Change: Yeah cause here it looks like now conducting.
Kevin Williamson: A question and answer session.
Kevin Williamson: To ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue.
Kevin Williamson: You May press star two to remove yourself from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys.
Operator: Hey, I won't call my police force...
Kevin Williamson: Ultimately for a call for questions.
Anthony Vendetti: Questionnaires from Anthony Vendetti from Maxim Group, please go ahead. Oh, yeah. Hi, Steve. How you doing? Hey, Anthony. So just in terms of you know, the reimbursement landscape now, any... Any improvement in that, pre-approvals, now that you have more data, maybe just talk a little bit about how that's progressing at this point. Yeah, thanks, Anthony. Of course, Tenon Medical directly, of course, doesn't control the reimbursement environment per se. We're certainly active participants in working through the various decision makers, et cetera, to bring the clarity necessary in the space. I do anticipate that that is moving to a sort of an ultimate conclusion here.
Speaker Change: First question here is from Anthony Vendetti from Maxim Group. Please go ahead.
Anthony Vendetti: Oh, Yeah, Hi, Steve how are you doing.
Steve Foster: Hey, Anthony.
Anthony Vendetti: So just in terms of.
Steve Foster: The reimbursement landscape now any any.
Steve Foster: Any improvement in that pre approvals now that now that you have more data.
Maybe just talk a little bit about how thats progressing at this point.
Kevin Williamson: Yeah, Thanks, Anthony Yeah of course.
Kevin Williamson: The 10 on medical indirectly of course doesn't control the reimbursement environment per se, we're certainly active participants.
Kevin Williamson: And working through the various decision makers et cetera to bring that clarity necessary in the space.
Kevin Williamson: I do anticipate that.
Speaker Change: Is that because you're moving to and it's sort of an ultimate conclusion here, it's difficult to be really clear on this date, it's all going to be squared away. It's a process.
Steve Foster: It's difficult to be really clear on, on this date, it's all going to be squared away. It's a process. But great progress has been made. I think people are working hard and in good faith to get there. And as soon as we get that clarity, I think what's important is the coders themselves at each individual physician office or site, as well as the payers, et cetera, are seeking clarity on, hey, look, how does this work? What are the, what are the definition of these codes? When are they going to stop changing? Things of that nature.
Speaker Change: Great progress has been made I think people are working hard and in good faith to get there.
Speaker Change: Soon as we get that clarity I think what's important is the coders themselves at each individual.
Speaker Change: Or a physician office or site as well as the payers et cetera are seeking clarity on Hayden look how does this work what are the one of the definition of these codes when are they going to stop changing things of that nature and we do believe great progresses being made in that regard before.
Steve Foster: And we do believe great progress is being made in that regard. Before that happens, there's just questions that slow the process down, right? We're still having good success getting procedures approved, but it requires some additional time and going through appeal processes and things. just sort of slowing things down.
Speaker Change: That happens Theres just.
Speaker Change: Questions that slowed the process down right.
Speaker Change: Still having good success getting procedures approved but it requires some additional time and going through approval processes and things.
Speaker Change: Just sort of slowing things down.
Anthony Vendetti: Okay, as you look at the full year 25, what do you think you need to do from a sales perspective? You know, or do you have a plan to incrementally add some salespeople or you're actively looking to add them now? Maybe just elaborate on that, thanks.
Speaker Change: Okay.
Speaker Change: As you look at the full year 'twenty five.
Speaker Change:
Speaker Change: What what what do you think you need to do from.
Speaker Change: Sales perspective.
Speaker Change: You know do you have a plan to incrementally add some salespeople you're actively looking to add now.
Speaker Change: Maybe just elaborate on that thanks.
Steve Foster: Yes, that was really our mission in and throughout 2024. We made some significant additions to our sales organization. They're coming online as we speak here and most are now in place. We do anticipate we'll have more horsepower, if you will, out there in the field, more coverage in key geographies and what have you. So if the answer to your question is yes, you know, we moved up to a bigger number of sales territories. And again, to reinforce, right, we have direct regional and area sales managers who interface with independent distributors to cover, to train and to handle the distribution of our technology out there.
Speaker Change: Yes, well that was really our mission.
Speaker Change: And then throughout 'twenty 'twenty four we made some significant additions to our sales organization, they're coming online.
Speaker Change: As we speak here and most are now in place we do anticipate we'll have a.
Speaker Change: No more horsepower if you will out there in the field more coverage in key geographies and what have you. So the answer to your question is yes, we moved up to a bigger number of sales territories and again to reinforce right we have direct regional.
Speaker Change: Area sales managers, who interface with independent distributors.
Speaker Change: To get cover to train.
Speaker Change: Handle the distribution of our technology out there.
Steve Foster: Okay, and so all those direct areas, sales manager positions are filled. And just remind me, Steve, how many do you have right now? They are filled and there are six of them across the country. Okay, and then, and then the independent distributors that you work with. What is the total It's not your sales force, but how many salespeople in aggregate make up the independent sales team? Yeah. We have 42 existing independent distributor contracts out there. Now, some of those are relatively small distributorships with one or two people involved. Others are larger organizations. We have 42 total contracts out there, so formalized, if you will, engagement with an independent distributor in a specifically defined geography per the contract.
Speaker Change: Okay and so.
Anthony Vendetti: So all of those direct area sales manager positions are filled and just remind me Steve how many how many do you have right now.
Steve Foster: There are they are filled and there are six of them across the country.
Anthony Vendetti: Okay, and then and then the independent distributors that you work with.
Steve Foster: <unk>.
Steve Foster: What is the total.
Steve Foster: Sales, it's not your salesforce, but how many sales people.
Steve Foster: In aggregate make up the.
Steve Foster: The independent sales team.
Speaker Change: Yes, we have 42 existing independent distributor contracts out there now some of those are relatively small distributors ships with one or two people involved others are larger organizations, we have 42 total contracts.
Speaker Change: Out there formalized if you will engagement with an independent distributor.
Speaker Change: Specifically defined geography per the contract.
Anthony Vendetti: Okay, great. That's helpful. Thanks so much. I'll hop back in the queue. Thank you.
Okay great.
Speaker Change: That's helpful. Thanks, So much I'll hop back in the queue.
Speaker Change: Excellent.
Speaker Change: Thank you. This concludes the question and answer session I'd like to turn the floor back to Mr. Foster for any closing comments.
Operator: This concludes the question and answer session. I'd like to turn the floor back to Mr. Foster for any Thank you, Matt. I appreciate it.
Steve Foster: Thank you, Matt I appreciate it and I'd like to thank each of you for joining our earnings conference call today and look forward to continue to update you on our ongoing progress in growth, but we're unable to answer any 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.
Steve Foster: I'd like to thank each of you for joining our earnings conference call today and look forward to continue to update you on our ongoing progress and growth.
Steve Foster: If we're unable to answer any of your questions, please reach out to our IR firm, MZ Group, who would be more than happy to assist.
Operator: With that, I wish everyone a good day.
Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you again for your participation.
Steve Foster: This concludes today's teleconference. You may disconnect your lines at this time. Thank you again for your participation.
Steve Foster: [music].
Operator: Besides, my audition day is scheduled to begin May 29th.
Steve Foster: Okay.
Steve Foster: Okay.
Steve Foster: Yeah.
Steve Foster: Uh huh.
Steve Foster: Yeah.
Steve Foster: Yeah.
Steve Foster: Yeah.
Steve Foster: Sure.
Steve Foster: Okay.
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