Q1 2025 MediWound Ltd Earnings Call
Good day and welcome to the Medi wind first quarter 2025 earnings call. All participants will be in listen only mode should you need assistance. Please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask quest.
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Speaker Change: I would now like to turn the conference over to Dan Ferry of Lifesize Advisors. Please go ahead.
Thank you operator and welcome everyone.
Speaker Change: Earlier today pre market open bad wound issued a press release announcing financial results for the first quarter ended March 312025.
Speaker Change: You May access this press release on the company's website under the investors tab.
Speaker Change: I'd ask you to review the full text of our forward looking statements within this morning's press release.
Speaker Change: Before we begin I would like to remind everyone that statements made during this call, including the Q&A session.
Speaker Change: Relating to <unk> expected future performance future business prospects or future events or plans.
Our forward looking statements as defined under the private Securities Litigation Reform Act of 1995.
Speaker Change: Statements may involve risks and uncertainties that could cause actual results to differ materially from expectations.
Speaker Change: And are described more fully in our filings with the SEC.
Speaker Change: In addition, all forward looking statements represent our views only as of today.
Speaker Change: And medimmune assumes no obligation to update or supplement any forward looking statements, whether a result of new information future events or otherwise.
Speaker Change: This conference call is the property of marijuana and any recording or reprice cast is expressly prohibited without the written consent of megawatt.
Speaker Change: With us today are all for Goldman Chief Executive Officer of Betterment and.
Honey, Luxembourg, Chief Financial Officer.
Speaker Change: Okay.
Wolfensohn: Wolfensohn EVP of strategy and corporate development is also participating in today's call.
Speaker Change: Following our prepared remarks, we will open the call for Q&A.
Ofer: Now I would like to turn the call over to Ofer, <unk>, Chief Executive officer of megawatt Ofer.
Speaker Change: Hey, Thank you Dan and good morning, everyone.
Speaker Change: We entered the 2025 with strong execution across our clinical commercial and operational priorities maintaining the momentum we established in 'twenty 'twenty four.
Speaker Change: The two phase III study, where S. Correct is on track and the addition of a collaboration with camera CIS marked a significant milestone actually bringing in nearly all the major wound care companies into a clinical research program.
Speaker Change: Meanwhile, Nexobrid continues to gain global traction we have.
Speaker Change: But long term manufacturing investments to support sustained growth.
Speaker Change: Let's begin with S. Correct. Our next generation is thematic debridement therapy for chronic wounds.
Speaker Change: Rick one for you.
Rick: The value phase III study for venous leg ulcers is progressing as planned the global trial will enroll 216 patients across approximately 40 sites in the United States and Europe.
Rick: Most of the U S sites are already open and the majority of the European sites are expected to be activated in the third quarter of 2025.
Rick: Our escort program is strategically Derisked building on the strong results of our phase two studies.
Rick: S correct simply replicate those clinical outcomes the phase III trial would be considered a clear success with results expected to support both regulatory submissions and commercial positioning.
Rick: The value Phase III protocol also includes key enhancements designed to further increase the likelihood of success.
Rick: We have a larger patient population to increase the statistical power.
Rick: An interim analysis.
Rick: 65% enrollment, enabling adaptive adjustments.
Rick: This assessment is anticipated in mid 2026.
Rick: And we have standardized treatment protocols to minimize the variability and ensure consistency across sites.
Rick: Finally, it is important to note that the S. Correct same to same shares the same F. D. A approved active pharmaceutical ingredient as nexobrid for nearly identical indication eschar removal.
To further strengthen our BLA submission and to enhance commercial readiness. We are planning a 45 patient randomized prospective phase III head to head comparison of S. Correct versus collagenase scheduled to begin in the second half of 2025.
Rick: It will include both <unk> and the European quality finished product you look so generating critical comparative data that will be instrumental in supporting our market access and pricing strategies.
Rick: This quarter also marks a major milestone in our strategic research research collaborations. We now have participation by almost all the leading global wound care companies across our clinical development programs.
Rick: Added to the list is carrier system, which will support our upcoming diabetic foot ulcer trial by providing its tissue product Mary Jane It's a fee.
Rick: The skin graft for active closure.
Rick: We sold went to them more leaky care assist me metrics supporting our clinical programs S. Correct has received strong external validation for most of the players the key players in the industry.
Rick: The growing excitement around best correct comps from its clear clinical advantages, particularly when we compare it to <unk>. The only FDA approved enzymatic debridement, 80%. This was further reinforced by a recent you reviewed publications in wood, which included the past.
Rick: Okay Valassis of our phase II chronic study N V a to use.
Rick: The data the data there confirmed S codexis superiority across multiple endpoints, including cost of debridement in haswell relation tissue formation and improved wound closure.
Rick: The company has secured the $2 5 million euros grant component of the European Innovation Council accelerates or funding to support the clinical and regulatory advancement of S. Correct for the treatment of diabetic foot ulcers.
Rick: Following a successful evaluation process.
Rick: The company engaged in discussions for the $13 75 million euros equity investment, which may not be materialized.
Rick: We don't expect this to impact our timeline.
Rick: <unk> study remains on track to begin in 2026.
Rick: <unk> alignment with both the F D. A N E M E on the trial protocol.
Rick: The rationale for our excitement around the <unk> program was clearly demonstrated at recent major international wound care conferences, including the W. H S assay that but do you see and humor.
Rick: We presented to you a few specific data from our face to face first phase II study of correct.
Rick: That study included patients with D. If you really go and with trauma wounds and the D. A few results mirrored the strong efficacy we have already seen as you've seen in values.
Rick: I will mention a few key findings.
Rick: That's correct achieved 58% complete debridement compared to just 14% with the gel vehicle.
Rick: Ventilation tissue was observed in 42 per cent of it corrects treated wood versus only 11% with the vehicle.
Rick: The median time to completely Brian meant what's just 23 days for S correct compared to 128 days with jazz.
Rick: And the median time to wound bed preparation was 24 days for S. Correct, whereas it was not whereas it was not achieved at all in the vehicle group.
Rick: With all this momentum and assuming positive results from the value Phase III study, we believe S. Correct is well positioned to become the global leader in enzymatic debridement.
Rick: Now, let's turn our attention to nexobrid, our innovative and thematic therapy for severe burns.
Rick: U S adoption of Nexobrid continues to expand with consistent ordering from nearly 60 burn centers, our commercial partner very self reported it to HUD within 7% year over year increase and a 31% sequential increase in Nexobrid revenue.
Rick: During the first quarter of 2025.
Rick: In Japan, and Europe demand continues to exceed when you factor in capacity.
Rick: We remain on track with the commissioning of our new manufacturing facility with operational readiness expected by year end 2025, commercial availability will follow regulatory approvals from the FDA and EMA and it has dissipated in 2020 six.
Rick: This facility will significantly expand our production capabilities, enabling us to meet growing global demand and support sustained revenue growth.
Rick: Nexobrid also featured prominently in recent scientific and clinical communications.
Rick: With us from a pediatric phase III study were published in the peer reviewed journal Burns.
Rick: Do they enforce then nexobrid.
Rick: You can see in safety as a non surgical eschar removal therapy for both adults and pediatric burn patients.
Rick: At the American Burn Association annual meeting New data were presented on Nexobrid emergency use during the Israel Mass War.
Rick: Nexobrid was used to treat patients with blast injuries and complex burns.
Rick: One hospital reported treating trauma or burn patient every minute for 24 hours highlighting nexobrid vital role in mass casualty and emergency situations.
Rick: Governments around the world.
Rick: Took note of Nexobrid impact in particular, the U S. Government has expressed interest in establishing a domestic backup manufacturing sites in the us.
Rick: We have initiated planning and site selection for the future U S based facility projects supported by BARDA.
We are also seeing increased interest in stockpiling nexobrid as part of a global emergency preparedness efforts and we believe some of these discussions will translate into concrete opportunities lifestyle manufacturing capacity expands.
Honey: And now I would like to turn the call over to Honey to review our financial performance in more detail honey.
Honey: Thank you Arthur and good morning.
Honey: Total revenue for the first quarter of 2025 with $4 million compared to 5 million in the first quarter of 'twenty 'twenty four.
Honey: The decline reflects lower revenue from BARDA funded development services is the Nexobrid development programs for both adult and pediatric population.
Well just completion.
Honey: Gross profit for the quarter was <unk> 7 million, representing a gross margin of 19% compared to 2.6 million and a gross margin of 12% in the trial are period.
Honey: This improvement reflects a favorable change in our revenue mix.
Honey: R&D expenses totaled $2 9 million compared to $1 5 million in Q1, 'twenty 'twenty four reflecting continued investment in the ESCO X value phase III trial and associated development activities.
Honey: SG&A expenses were 3.1 million compared to $2 9 million in the trial are period.
Honey: Operating loss for the quarter was $5 2 million versus $3 7 million Q1, 'twenty 'twenty four.
Honey: Net loss was <unk> 7 million or seven cents per share compared to a net loss of $9 7 million or one dollar and five cents per share last year.
Honey: The improvement was primarily driven by noncash financial income related to warrant revaluation.
Honey: Adjusted EBITDA loss for the quarter was 4 million compared to $2 9 million in the prior year period.
Honey: Now turning to our balance sheet.
Honey: As of March 31st 2025, we added $38 7 million in cash cash equivalents and deposit compared to 43.6 million. If you earn 2024 we.
Honey: We used $5 1 million to fund our operations during the quarter.
Alpha: That concludes my financial review Alpha next to you.
Alpha: Thank you Jaime.
Alpha: So in summary, we began 2025 with strong execution.
Speaker Change: Meaningful progress across our key programs.
Speaker Change: The value of Phase III trial, that's correct remains on track.
Speaker Change: Boarded by growing scientific evidence and engagement of virtually all major wound care players and wound care partners we.
Speaker Change: Advancing elementary studies to support market access and future commercial success.
Speaker Change: Nexobrid continues to gain traction globally with record U S sale high demand in international markets, and new clinical data demonstrating its value in both routine and emergency care.
Speaker Change: Operationally, we remain focused on scaling our manufacturing capabilities to support long term growth with the new manufacturing facility progressing on schedule and our U S expansion plans underway.
Speaker Change: With a solid foundation and focused pipeline and strong strategic alliances, we are well positioned to deliver long term value.
Speaker Change: With that I will now turn back the call to the operator to open the line for questions operator.
Speaker Change: Operator.
Speaker Change: We will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone. If you are using a speakerphone. Please pick up your handset before pressing the keys if at any time. Your question has been addressed and you you would like to withdraw your question. Please press Star and then two.
Speaker Change: Our first question comes from Chase Knickerbocker with Craig Hallum. Please go ahead.
Chase Knickerbocker: Good morning, and good afternoon I appreciate you taking the questions.
Maybe just first on manufacturing can you remind us what is kind of yet to be done to kind of be ready for scale up by year end and then any additional feedback that you've gotten from the relevant agencies.
Chase Knickerbocker: Around timing of those required regulatory approvals sign us, particularly with the F D. A.
Speaker Change: I Chase a great to have you with us today.
Speaker Change: Let me address the manufacturing question. So as I said the demand for Nexobrid is increasing due to several factors we have a major market launches U S, Japan and growing governmental interest expanding of indications the pediatric indication the military use so we are focusing on.
Speaker Change: Making sure that we will be able to deliver we completed the construction of the new the new facility and we are now in the commissioning phase actually we are on time, and we anticipate achieving all operational capacity by the end of 2025. After that we are acquiring full expect shows.
Speaker Change: E M E and F D E E.
Speaker Change: May is easier because we they are the inspectors are Israelis. So we expect it to be quite sooner I suppose the F. D. A we are you know there is a quite of an uncertainty about how theyre doing remote.
Speaker Change: Our remote inspections these days and.
Speaker Change: Anyway, we are expecting that only around to meet 2026, So we have time.
Speaker Change: Got it and then just on the.
Speaker Change: Potential for some U S capacity.
Speaker Change: Any thoughts on kind of you know what investors should be expecting kind of movement. There. When you we could have seen kind of Ah Ah Ah Ah Ah site be identified.
Speaker Change: Something formal with the U S government in place et cetera, do you have any thoughts on kind of timing there.
Speaker Change: Yeah. So as you know the the the U S. Government has expressed interest in establishing such a domestic backup manufacturing site. We have a project that we believe will be finished by Q3. This year. After that we will have the understanding about the location.
Speaker Change: I mean et cetera.
Speaker Change: As I said this project is fully supported by BARDA.
Speaker Change: And then you had a number of of posters and presentations at CWC and I would imagine you've got an opportunity to catch up with a lot of you know.
Speaker Change: The relevant clinicians that a lot of your sites for.
Speaker Change: For the V. I'll use study any incremental thoughts from them and as far as enrollment goes are things kind of to plan.
Speaker Change: As far as what you expected, thus far you know anything taking longer or shorter than expected just kind of an update on kind of initial cadence of activations and as we look for some initial enrollment progress here in the short term.
Speaker Change: Yeah. So so since I met you at this conference. So I know that you've been there. So in this conference that maybe one day had a very strong April.
Speaker Change: Performance. Many many presentations posters abstracts were where were shared we.
Speaker Change: We saw we met the majority of the.
Speaker Change: From the United States Index statement is.
Speaker Change: The excitement is there.
Speaker Change: This trial is the most significant and comprehensive trial in venous leg ulcer patients in the past few decades. This is why all the leading wound care companies and the top kols are collaborating with us in this endeavor because they know that if it is a success. If it is a success. This trial is going to bother you.
Speaker Change: <unk> impact on the market. So as we said the recruitment of this study is progressing as planned.
Speaker Change: We expect the next Michael on the most important milestone is having the interim data that mid 2026, and we don't see an issue in getting there.
Thanks Ofer.
Speaker Change: Thank you.
Speaker Change: And the next question comes from RK with H C. Wainwright. Please go ahead.
Speaker Change: Good afternoon, all Florida and honey.
Speaker Change: A couple of quick questions.
Speaker Change: In your prepared remarks, you started talking a little bit about stockpiling of Nexium Brad.
Speaker Change: So in general terms.
Speaker Change: So how are you planning for this I know you have enough demand or new for the product.
Speaker Change: So I'm just trying to think in general terms, what could be even be thinking in.
Speaker Change: And in dollar amounts what those stockpiling.
Speaker Change: That you could be alright, I expect it to Phil.
Speaker Change: So hi, Okay. This is great to have you underline today.
Speaker Change: It's a great question you know stockpile currently we have guidance regarding our revenue. Okay. We can achieve those numbers and they currently our preference is to treat patients not to use nexobrid I don't want it to be in the shelf somewhere so even government that we have.
Speaker Change: Speaking with they are familiar with our priority first of all to treat real paresh patience and it will also support.
Speaker Change: Great.
Speaker Change: Our commercial launches in specific territories as for how much governments will will but I in 'twenty six 'twenty 'twenty seven I can't really give you the numbers all I can say is everything is embedded in the guidance that we're giving generating devin.
Speaker Change: Of $24 million, this year, and Jenny and generating.
Speaker Change: $30 million to $33 million next year after that we would know better. If you can just share with you that after what countries. So what nexobrid did during the Israeli come I swore there is a growing interest around many governments, United States Europe and others.
Speaker Change: And we are just starting the discussions now.
Speaker Change: Thank you for that.
Speaker Change: So in terms of the aesthetics on the ongoing phase three trial, you were saying you have 40 centers.
Charles: Charles for you.
Speaker Change: Of the 40 centers what percentage is in the U S.
Charles: Will there be any reason why the study could good.
Speaker Change: Get completed ahead of time.
Speaker Change: I'm spending right now.
Speaker Change:
Speaker Change: So it's a it's an interesting question. We we are first of all ask for the fact that the sites are.
Speaker Change: Almost 50% of this set of decide between 17 to 20 will be in the United States. We have a two to three sites in Israel and the rest will be in Europe.
Speaker Change: So this is the structure of the sites as full enrolment pace as you can imagine that one 5 million patients in the United States that are relevant to such a treatment.
Speaker Change: We chose the most performing sites to participate in the trial. So we don't think that the enrollment will be an issue having said that we.
Speaker Change: Spent a lot of energies a lot of money and a lot of airports, making sure that we are recruiting the right patients I don't want a healthy patient.
Speaker Change: Two joined the study I don't want someone that the placebo cure his wants to join the study I don't want a person that's a by mistake by chance know that the P. I to join the study. So the screening process is something which is very very articulated so weak and has.
Speaker Change: A patient per site per month.
Speaker Change: This is our track records of clinical trials in this indication. This is what we know from the previous clinical trials that I will see a road. This is the track record that they have so we don't see a reason that it will be.
Speaker Change: Quicker and actually we are not in a rush the only thing that we care about is that this trial will be a success and that it will change the treatment of chronic wounds.
Speaker Change: And last question from me Oh for it.
Speaker Change: In terms of the phase two head to head study.
Speaker Change: Against Collagenase.
Speaker Change: Collagen is.
Speaker Change: Yeah.
Do you plan to start soon.
Speaker Change: I would say the results of that study and the phase III study come around the same time or one more than the phase two would come ahead of it just trying to understand so that you.
Speaker Change: You know when the whole package will be ready to be sent.
Speaker Change: Talk to the regulators.
Speaker Change: The plan is that the trial will finish I think the head to head study since it isn't it.
Speaker Change: It Didnt start yet so I cannot tell for sure but the plan is that it will be finished ahead of the phase III study. It's a much shorter if that should be we are looking at there are all kinds of parameters that will impact.
Speaker Change: Especially safety market aspects pricing aspect et cetera, we don't need the long follow up their three month follow up after the study completes in the in the phase III trial. So this is much shorter and more and more simpler trial as far as the work planning and now we will get.
Speaker Change: The final results before the phase III is completed.
Speaker Change: Thank you. Thank you very much for taking all my questions.
Speaker Change: Thank you okay.
Michael Kuhn: And the next question comes from Michael Kuhn, which with Maxim Group. Please go ahead.
Michael Kuhn: Thank you so much for taking my questions today.
Michael Kuhn: Yeah.
Michael Kuhn: Hi, Michael.
Michael Kuhn: I guess I'd, just like to follow up a little bit on the head to head study and in particular, if you could help us understand what kind of considerations.
Michael Kuhn: Michael into the pricing strategy, if you're achieving faster broadband <unk> Santo with fewer applications. You have to just you didn't justify enhanced pricing to match cost per application.
Michael Kuhn: And do you also need to consider the reduced health care utilization with faster debridement as well.
Michael Kuhn: To get a sense of kind of what's factored in metrics would be relevant for those pricing determinations.
Yeah.
Barry: So hi, Michael and thank you for joining US today Barry can you. Please address that question.
Barry: Sure Absolutely Hi, Michael Good question I think the model that we have out right now with our $851 price target is merely the first component that you mentioned, which is what was the cost of the product over the duration of the treatment period, and we're comparing the average cost of sample over a treatment.
Barry: Period versus then what would be the anticipated premium for the average cost of a burst correct. The next part is what we'll be doing we're actually doing a full market research study on.
Barry: Market access and pricing that will get into the second component, which is the <unk> the health economics component.
Barry: Component of it where we do look at what are what are all the downstream impacts of saving six weeks of treatment from the time that it takes to apply the drug the nursing time, the physician time to what happens to these patients do some of them end up in the hospital do they have infections that are needed to be treated and once we get all of that together.
Barry: If indeed, there is a good part of it.
Barry: Dollars that debt facility would save on average and we think that we have the opportunity to take a higher premium against sample.
Barry: Alright, Thank you I really appreciate the additional clarity.
Barry:
Barry: And then.
Barry: When thinking about the potential for new stockpiling programs for Nexobrid.
Barry: We do expect that these would come from your expanded new manufacturing facility.
Barry: Or could there be more agreement similar to the U S. Domestic program just set up a dedicated manufacturing for those.
Barry: It's a good question, we we are planning to have some flexibilities here.
Barry: The current manufacturing facility, we are going to have a available day, new scalable manufacturing facility. We are planning a new manufacturing facility in the United States and we have a and we have another facility to support the department of Defense program and the other facility that will.
Barry: Be completed by the end of 2025 actually will be completed this year for maybe one of those facilities significantly expand our manufacturing capacity, we don't want to be in a position three years from now launching X S corrects, telling the analysts again, hey, there is huge demand, but we cannot.
Barry: But we cannot support that so those facilities significantly expand our manufacturing capacity and will provide us with critical support to two two first of all to a successful launch of first correct and to be able to satisfy the demands for all the countries that will be interested in stockpile.
Barry: Thanks.
Barry: Alright.
Barry: So there is an expectation that this new U S backup manufacturing could be used to help support demand commercially as well not just stockpiling.
Barry: Yeah. The the current facility that we have that we are that we are building in Israel is enough to start port the math, we anticipate adding in a facility in the United States can be not only backup also to expand manufacturing in Gulf of Mexico bread and may be to support us with the manufacturer and go fast correct as well.
Speaker Change: Alright, congrats on all the great progress and thank you for taking my question once again.
Barry: Thank you.
Speaker Change: And the next question comes from Scott Henry with Alliance Global Partners. Please go ahead.
Scott Henry: Good day.
Speaker Change: Right.
Speaker Change: The first question.
Speaker Change: At the NIH funding environment is certainly challenging which could impact BARDA department of defense.
Speaker Change: Hi.
Speaker Change: It seems like that that revenue was down a little bit in Q1 are you expecting that to rebound significantly in the coming quarters or how should we think about that overhang, even even though that's not our main priority obviously in product sales are more important.
Speaker Change: Just trying to get a sense of how to model.
Speaker Change: That development services line.
Speaker Change: Hi, Scott.
Speaker Change: And I. Thank you, it's great to having you with US today are maybe kind of do you want to answer this question.
Speaker Change: I've got great to have you with us. Thank you for the question. So although our guidance for 'twenty 'twenty four remain with no change actually we anticipate 24 million in total revenue.
Speaker Change: As you all know where the change in the U S administration caused a brief delay in the approval both BARDA and D. O D funded activity you'll need the transition. However, our programme now appear to be back on track and we do not anticipate any material impact on our <unk>.
Speaker Change: Revenue on our 'twenty 'twenty, four or five funding outlook and the outcome is that the revenue will not change for this year.
Speaker Change: Okay, great. So it sounds like we should expect.
Speaker Change: That to rebound if not the second quarter certainly the second half of the year.
Speaker Change: Yeah, Let me, let me step here and clarify in the first 60 days the administration would they didn't know what they can approve what they cannot approve than it was a kind of a uncertainty the feedback that we're getting is everything at least for our programs. He is back on track and we anticipate that 24 million guidance to it.
Speaker Change: Maine as it is and the programs that the funding as well with the priority that will keep on.
Speaker Change: Getting the U S government funds.
Speaker Change: Okay, great. Thank you for that color.
Speaker Change: And honey.
Speaker Change: Have you there I.
Speaker Change: You know could you talk a little bit about the below the line below the operating income that financial income expense line.
Speaker Change: <unk> has been pretty volatile.
Speaker Change: Very positive in this quarter a lot.
Speaker Change: More of a negative not not negative, but but more of an expense in the prior quarter.
Speaker Change: How should we think about that below the line expense financial income expenses expenses going forward you know what what's a representative number is there any noise in there.
Speaker Change: Oh man.
Speaker Change: I wish I knew the representative number if I knew I wouldn't be here because he is very much influenced by our shelf price for each end and the end of each quarter. Okay. So the below the line expenses is mainly from the financial income or expenses from revaluation of.
Speaker Change: All of the warrants so at the end of each quarter, we are doing and evaluation and if it's dependent very much depend on the share price. If it was a increased or decreased and from the beginning of the quarter and the SEC. They they they a direction on that.
Speaker Change: Our income or expense, okay. So at the end of the sports that they a shelf price was a 15 point 50, a too much below what it's 18 now okay. So it is very much dependent I cannot tell you what to expect it said it depends on the market.
Speaker Change: And I hope we'll see.
Speaker Change: Hey, good to a transition in our sell price and it will set a the opposite way because if it increases their expenses financial expenses, if it decreases our financial income I hope I answered.
Speaker Change: Yes, and that's actually quite helpful. I'll, just take a look at the filings where they'll get the greater detail.
Speaker Change: But that is helpful. Thank you for that and thank you for taking my question.
Speaker Change: If I may add those options expire in November 2026 is a $34 million of falling.
Speaker Change: But the way below the money and if you want to to look at next quarter, you will see that there was a significant increase in the share price probably there will be financial expenses related to that what we are okay with that hopefully after November 'twenty 'twenty six 'twenty. This company will remain weak.
Speaker Change: No one wants and this issue will be will disappear.
Speaker Change: Okay, great. Thank you for that color.
Scott Henry: Okay. Thank you Scott.
Speaker Change: This concludes our question and answer session I would like to turn the conference back over to Ofer Goldman for any closing remarks.
Ofer Goldman: Okay. So thank you everyone for joining a day, we look forward to updating you again in our next quarterly call.
Speaker Change: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Ofer Goldman: Yeah.