Earnings Call Transcript - BLFS Q1 2023

Operator, Operator

Hello. My name is Mallory, and I will be your conference operator today. I would like to welcome everyone to the Q1 2023 BioLife Solutions, Inc. Earnings Conference Call. Thank you. I would now like to turn the conference over to Troy Wichterman, Chief Financial Officer. Please go ahead.

Troy Wichterman, CFO

Thank you, Mallory. Good afternoon, everyone, and thank you for joining us. With me on today's call is Mike Rice, Chairman and Chief Executive Officer. Earlier today, we issued a press release announcing our financial results and operational highlights for the first quarter of 2023, which is available at biolifesolutions.com. As a reminder, during this call, we will make certain projections and other forward-looking statements regarding future events or the future financial performance of the company. These statements are subject to risks and uncertainties that may cause actual results to differ materially from expectations. For a detailed discussion of the risks and uncertainties that affect the company's business and that qualify as forward-looking statements, I refer you to our periodic reports and other public filings filed with the SEC. Company projections and forward-looking statements are based on factors that are subject to change, and therefore, these statements speak only as of the date they are made. The company assumes no obligation to update any projections or forward-looking statements, except as required by law. During this call, we will speak to non-GAAP or adjusted results. Reconciliations of GAAP to non-GAAP or adjusted financial metrics are included in the press release we issued this afternoon. These non-GAAP or adjusted financial metrics should not be viewed as an alternative to GAAP. However, in light of our historic M&A activity, we believe that the use of non-GAAP or adjusted metrics provides investors with a clearer view of our current financial results when compared to prior periods. Now I'd like to turn the call over to Mike Rice, Chairman and CEO of BioLife Solutions.

Michael Rice, CEO

Thank you, Troy. I'd like to begin our call by discussing our announcement today that we are actively exploring strategic alternatives for our Stirling ULT and Custom Biogenic Systems Cryogenic Freezer businesses, which could include out-licensing our proprietary IP, changing our go-to-market approach, and outright divesting these assets. As you know, we had high expectations for the benefits of scale the acquisitions could bring to BioLife and for the potential to cross-sell our core high-margin biopreservation media solutions with CBS and Stirling Differentiated Freezers. We built BioLife organically and inorganically with acquisitions like Stirling and CBS, and while we certainly realized many benefits of scale, after much analysis and consultation with external advisers, we've now come to a decision to explore our options for these businesses. The capital intensity and a lower margin volatile sales cycle business have not been beneficial to our core growth rate and corporate profitability and have not placed us in the peer group where we belong. With the global supply chain negative impact still ongoing and the volatile market dynamics in play, the expected merits of these two acquisitions have failed to materialize to the extent we expected. I take my job responsibility to create shareholder value very seriously, and with the support of the Board and our leadership teams, I will make the decision to explore a course change. To support these explorations, we've engaged a strategic advisory firm to manage outreach to and inbound inquiries from parties interested in licensing our IP and/or acquiring these businesses. To be clear, our strategic decision is to explore options, one of which is to potentially put our innovative CBS and Stirling businesses in the hands of other parties that can better leverage their operations, supply chain and cost structure to maximize their business model. If divesting is ultimately the best option and we complete both, we will have returned BioLife to a higher multiple peer group with a portfolio of leading high-margin, high-growth recurring revenue products and services that are class-defining. We believe any potential divestitures will preserve and enhance the synergies among our biopreservation media products, Sexton Cell Processing tools, evo Cold Chain management service and SciSafe biologic storage services. This potential portfolio optimization will help us to return to an enhanced gross and EBITDA margin company with industry-leading growth. It will also importantly and significantly reduce working capital cash burn, providing more flexibility to invest in and build upon our potent complementary offering where everything fits. It's clear when we look at these assets on a go-forward basis that our exploration of strategic alternatives is the right decision at the right time for the right reasons for the company and for shareholders. We recognize that it's frustrating when strategy and tactics fail to produce anticipated results. But as business people, we work for you, the shareholders, and we must be thoughtful and decisive. In our view, looking at the key financial metrics, we've built an incredibly powerful company. Going forward, acquiring additional high-margin recurring revenue businesses still makes strategic and economic sense, and our learnings from these two deals will be applied in the future so that we focus only on high-margin, high-growth businesses that can deliver additive recurring revenue. To conclude, I'd like to acknowledge the sustained improvement efforts of our leadership team, middle management, and line workers at CBS and Stirling who have put these assets in the best shape ever from the perspectives of quality, operations, supply chain, financial accounting, CRM, HR systems, and sales and marketing. The R&D activities have been focused and well managed through a rigorous stage-gate review and approval process. Without this work, we would not be in a strong position to explore strategic alternatives. We appreciate and recognize that operating through a potential divestiture process can lead to uncertainty for our team members and customers, and I'm proud and grateful for their dedication and support. Our team can count on us to retain talent and reward loyalty and results. Our customers can count on us to continue to produce and deliver high-quality products. Now I'll switch back to discussing our Q1 performance. The team continued to gain new CGT and biopharma customers, driving continued adoption of our Cell Processing and Storage and Storage Services platforms, while our Freezer platform experienced similar disruptions that others have reported in recent quarters. Turning to Q1 revenue and customer highlights. Total revenue was $37.7 million, representing a 4% increase over Q1 2022. Excluding COVID-related revenue from Q1 last year, total revenue growth was 16%, driven by a 28% increase in biopreservation media revenue. In Q1, we sold and shipped products or provided services to 197 new unique customer sites across our three products and services platforms. A large portion of our total revenue continues to come from existing customers as we penetrate deeper and pitch our integrated solutions to take more share of their spend for manufacturing, storage, and distribution products and services. In each of the last five quarters, we gained over 150 new customer sites, building a phenomenal pipeline of early-stage users that we will carefully nurture and support to drive future growth. New Q1 customer sites by product and service line included 9 more now using biopreservation media, 5 new ThawSTAR users, 17 new evo Cold Chain end users, 15 new Cryogenic Freezer and accessory customer sites, 121 new Stirling ULT Freezer and accessory customer sites, 22 new Biostorage customers, and 8 new Cell Processing customers now using Sexton products. For our Cell Processing platform in Q1, we received confirmation that our solutions will be used in at least 20 additional clinical trials for new cell and gene therapies. We estimate that our biopreservation media products have been used in or are planned to be used in over 630 customer clinical applications, and our Sexton Cell Processing tools are in about 140. For both biopreservation media and Sexton products, we also remain confident that each customer clinical application, if approved, could generate annual revenue in a range of $500,000 to $2 million. To date, our Cell Processing solutions are used in 14 approved therapies, including the recently approved Omisirge by Gamida Cell. We expect to be able to continue to take share from home-brew preservation cocktails as awareness grows of the critical role our engineered media formulations play in reducing risk for CGT companies. I'll reiterate the five strong catalysts we expect to support our growth estimates since each will increase the number of manufactured doses and hence the demand for our biopreservation media, Sexton Cell Processing solutions, evo Cold Chain rentals, and SciSafe storage services. Number one, new de novo CGT approvals; two, approvals of existing commercial therapies in new geographies; three, approvals of existing commercial therapies and new indications; four, approvals of existing commercial therapies as first- or second-line treatment; and five, the eventual shift to allogeneic therapies. Turning to our Storage and Storage Services platform, which includes evo Cold Chain rentals and SciSafe Storage Services, we gained 39 new customer sites in Q1, 22 for biologic storage services and 17 for evo. On the SciSafe side of the platform, we also continue to penetrate further in existing customers and have a very strong pipeline of high-value, long-term contract opportunities, and we expect another banner year for SciSafe. On the evo Cold Chain management side of the platform, we continue to drive the business as evidenced by 135% increase in quarterly shipments, specifically of approved cell therapy products. As we've reported before, evaluations and validation shipments by leading CGT companies are ongoing, and we expect continued adoption. One global pharma company has confirmed that upon a completed successful validation, they intend to switch up to 100% of both of their approved cell therapy shipments from the leading provider over to our evo platform early next year. This is excellent market validation as internally, we modestly modeled a 50-50 split of shipments between evo and the incumbent. And finally, our Freezers and Thaw Systems platform. We shipped first-time orders to 141 new customer sites, including 121 now using Stirling products. Customers continue to recognize the value proposition of our Freezer offerings based on tight temperature regulation, reduced power consumption, reduced heat generation, and less noise pollution as these support their goal of reducing the negative environmental impact of their operations. Q1 revenue was lumpy and off pace due to the now well-understood tightening biotech capital equipment funding and delayed purchase decisions due to economic uncertainty. On a positive note, we have a strong opportunity pipeline of potential Stirling Freezer orders, forecasted to close this year. Now I'll turn the call back over to Troy to present our financials for Q1. Troy?

Troy Wichterman, CFO

Thank you, Mike. Total revenue for the first quarter of 2023 was $37.7 million, representing a 4% increase over Q1 of 2022 and excluding COVID-related revenue from Q1 2022, growth was 16%, which was driven by a 28% increase in biopreservation media revenue. There was no COVID-related revenue in Q1 2023 compared to 10% of total revenue in Q1 2022. Cell Processing platform revenue was $19 million, up 27% over the same period in 2022. Storage and Storage Services platform revenue was $5.7 million, down 5% over the same period in 2022. Excluding COVID-related revenue from Q1 2022, revenue in Q1 2023 increased 98%. Freezers and Thaw Systems platform revenue was $13 million, down 15% over the same period in 2022. Excluding COVID-related revenue from Q1 2022, revenue in Q1 2023 decreased 12%. Adjusted gross margin for the first quarter of 2023 was 37% compared with 33% for the first quarter of 2022 and 32% for the fourth quarter of 2022. The positive impact sequentially when compared to the prior year was primarily due to product mix and lower inventory write-off charges, partially offset by lower gross margins at SciSafe due to the decrease in COVID-related revenue without an associated decrease of infrastructure costs. GAAP operating expenses for Q1 2023 were $51.3 million versus $44.2 million in Q1 2022. Adjusted operating expenses for Q1 2023 totaled $25.5 million compared with $20.1 million in Q1 2022. The increase in operating expenses was primarily driven by increased headcount, consulting fees, and infrastructure costs to support our long-term growth objectives. Our adjusted operating loss for the first quarter of 2023 was $11.4 million compared with $8.3 million in Q1 2022. Adjusted EBITDA for the first quarter of 2023 was negative $1.9 million compared with negative $1.1 million for the first quarter of 2022. In Q1 2023, we had nonrecurring expenses of approximately $3 million, consisting of strategic consulting fees, a planned severance payment for our former COO, indirect taxes, and a discrete bad debt write-off. Excluding these nonrecurring expenses, adjusted EBITDA would have been positive $1.1 million. We expect adjusted EBITDA improvement throughout the year, resulting in full-year 2023 positive adjusted EBITDA. Our cash and marketable securities balance at March 31, 2023, was $56.9 million, compared with $64.1 million at December 31, 2022. Taking into consideration our adjusted EBITDA of negative $1.9 million, cash used in Q1 2023 was primarily related to unfavorable working capital adjustments of $840,000, largely due to the timing of raw material deliveries related to biopreservation media, capital expenditures of $3.3 million, and purchases of assets totaling $1 million. Turning to 2023 revenue guidance. Management is reaffirming full-year guidance is expected to be in the range of $188 million to $202 million, reflecting year-over-year and organic growth of 16% to 25%. Excluding COVID-related revenue, year-over-year growth of 26% to 35%. Revenue guidance for 2023 does not include any COVID-related revenue. Total revenue expectations for 2023 include the following platform contributions, Cell Processing platform, $89 million to $93 million, an increase of 30% to 35% over 2022; Storage and Storage Services platform, $26.5 million to $30 million, an increase of 0% to 13% over 2022, excluding COVID-related revenue, year-over-year growth of 64% to 86%; Freezers and Thaw Systems platform, $72.5 million to $79 million, an increase of 9% to 18% over 2022, excluding COVID-related revenue, year-over-year growth of 13% to 23%. Finally, in terms of our share count, as of May 10, we had 43.5 million shares issued and outstanding and 46.3 million shares on a fully diluted basis. Now I'll turn the call to Mike.

Michael Rice, CEO

Thanks, Troy. I'd like to summarize four key takeaways from Q1 and today's call. First, BioLife Solutions is a critical, highly trusted tools and services provider to the cell and gene therapy industry. We've built a valuable portfolio of solutions that's helped CGT developers increase their likelihood of success by reducing risk in their manufacturing, storage, and distribution workflows. Number two, demand for our portfolio of class-defining bioproduction tools and services remains strong. And it's important to remember that we're still in the early phase of CGT approvals and the growth of this exciting industry. We are very well entrenched and intent on securing and maintaining a position as a premier enabling CGT tools and services provider. Number three, our decision to explore strategic alternatives for our two Freezer businesses was made carefully after much analysis and consultation with our Board and external advisers. We're keenly focused on options to reposition our portfolio only on the high-margin, high-growth recurring revenue streams that define us. And number four, order volume to date so far in Q2 is strong across our portfolio. For the rest of 2023, we will focus on running the business efficiently, and managing the exploration of strategic alternatives for our Freezer businesses. Now I'll turn the call back over to the operator to take your questions. Mallory?

Operator, Operator

Your first question comes from Jacob Johnson with Stephens.

Jacob Johnson, Analyst

Mike, maybe starting where you started on the call today, just on the strategic alternatives for the Freezer businesses. You outlined a couple of options, but it seems like a potential sale is top of mind. So can you just talk about how you think the potential outcomes from the strategic review? And maybe any kind of thoughts on the timeline around that?

Michael Rice, CEO

Yes. Thanks, Jacob. Well, I want to be really clear that it's not a foregone conclusion that divesting is the only thing we're looking at or the only outcome that could materialize. We have a number of things we're looking at, and it's still pretty early, but we've got a great advisory firm helping us navigate this. And for us, it's just early, and we're all about obviously picking the best option that creates the most shareholder value. Too soon to tell you in terms of a timeline when something might happen.

Jacob Johnson, Analyst

Got it. Fair enough. And then maybe the other question just around that in the press release, you reiterated the $250 million of revenue, 50% gross margin, 30% EBITDA targets. Obviously, if you were to divest the Freezer business, that would be a chunk of revenue that would probably make that difficult. But I guess I'm more curious on the other side of things. You highlighted the profitability of the underlying business. Kind of any commentary you could give us on just kind of how much the Freezers are weighing on profitability right now?

Michael Rice, CEO

Yes. It's a really good question, Jacob. I appreciate you asking. Well, clearly, if we were to divest one or both, we'd have to issue some updated not only guidance, but also some mid- to long-term financial aspirational goals, which we would do once we had a clear vision of how things would shake out. To the last comment that you made to the extent the Freezers are weighing down profitability, it is material. I mean I'll just say that with full potency it’s a material weight down relative to the other parts of the business.

Jacob Johnson, Analyst

Okay. And then, Mike, maybe for the last question. Some other companies have reported this earnings season and obviously, the macro has been a challenge, which you mentioned regarding Freezers. However, concerning China, it seems like there might be some positive movement on the distributor side. Have your distributors indicated any signs of weakness from China, particularly in relation to the media business?

Michael Rice, CEO

Not at all yet. In fact, if I just think about the last, I don't know, a couple of clinical support engagements that Dr. Mathew, our CSO is involved in, they are from China. And so I don't have any read-throughs from Marcus or the sales team that the indirect sales in that part of the world and APAC are soft sequentially or year-over-year. So no, to the contrary.

Operator, Operator

The next question comes from Thomas Flaten with Lake Street Capital Markets.

Thomas Flaten, Analyst

I'm considering the macro situation, especially with the decline in Freezer sales in the first quarter. Could you help us understand some of the macro challenges, given that you're maintaining the guidance for that segment of the business?

Michael Rice, CEO

Right, Thomas, that’s a great question. We evaluated several factors regarding our guidance for this year. I want to elaborate on a point I made in my prepared remarks: when we assess the pipeline of mostly ULT Freezers that are classified as high confidence to close this year, the number is significant. It’s much larger than I anticipated, and this doesn’t even include all the opportunities, just those identified as high confidence to close. We are not even halfway through the year yet. Given this, despite one soft quarter, it wouldn’t have been wise to lower our guidance for the Freezers and consequently for the overall guidance. As I speak to you on May 10, I am confident we will achieve that number and reach our total revenue range. However, if the latter hadn't come to fruition, we would likely be discussing a different situation.

Thomas Flaten, Analyst

Got it. I’m not sure how much information you can provide about the large pharmaceutical customer mentioned in the press release. However, I’d like to hear more about the successes you've had. I'm sure several factors contributed to their decision to switch from the incumbent to your company. Can you share details on that sales process and any feedback they gave you?

Michael Rice, CEO

Yes, I would describe the process as thorough or vigorous. It's not comparable to the somewhat simpler process we experienced a few years ago with another leading CGT company focused on a few genuine therapies. This time, the engagement is quite intense, and we've established a strong relationship with the decision-makers on their side. We have a dedicated team consistently collaborating with this customer, nearly every week. There is a structured project plan in place, involving a series of evaluation steps to determine whether to proceed. When I specifically asked our team about the potential outcomes, they indicated that if everything goes well on our end, we could expect a shipment split of up to 100%. This is significantly higher than our initial expectation of a 50-50 split, which we considered a conservative estimate. If this scenario unfolds, it could have substantial implications for us and would also impact the current incumbent significantly.

Thomas Flaten, Analyst

Got it. One quick final question for me. Now that you mentioned you have 14 approved cell and gene therapies that you are involved with, has that enabled you to confirm the revenue range of $500,000 to $2 million that we have discussed for a few years? Is there any indication that this range for commercial products might not be accurate?

Michael Rice, CEO

Well, I appreciate you asking. I still think it's probably a little low on the high end, but it's still early because, again, the ones we're in there really with a couple of exceptions, they're pretty recently approved. So we just need a few quarters of their track record to see what's going to happen.

Operator, Operator

The next question comes from Chad Wiatrowski with TD Cowen.

Chad Wiatrowski, Analyst

Just one on OpEx. How do we think about OpEx sort of the cadence throughout the rest of the year? And maybe how the strategic alternatives of the Freezer business could impact that?

Troy Wichterman, CFO

Yes. So as far as OpEx for the rest of the year, I did mention some nonrecurring charges in Q1. If you were to back those out and then grow it, not quite in line with the revenue growth, but again, growing to support our revenue growth, that's a good way to look at the OpEx...

Chad Wiatrowski, Analyst

Just on the macro headwinds, again, obviously seeing sort of the CapEx issues from biotech and pharma. But on the R&D side, are you seeing like any delays in clinical trial timelines or potential headwinds on that front?

Michael Rice, CEO

Fair question, Chad. And I can't speak specifically to it, but I would certainly support that we are seeing some of that. But the thing to remember is in the early stages, these aren't meaningful revenue contributors. So it's not really an impact. They don't buy that much in the early days because the trial enrollment is pretty small, right?

Operator, Operator

Your next question comes from Paul Knight with KeyBanc.

Paul Knight, Analyst

Now I know that with Stirling and CBS, one of the intentions was to create some cross-selling synergy. What are your thoughts on this? Have you changed or will you change the way the Cell Processing platform products and the service products are sold? What are your plans for any modifications in channel marketing? That's my first question.

Michael Rice, CEO

Good place to start, Paul. Yes. Well, I think what we've learned, one of the key learning takeaways is that despite our deep contacts and the C-suite in that, there are different decision-makers, folks who buy capital equipment, particularly downstream to the folks that were closer to, which are in the processing upstream side of the house. And our assumption was that we could leverage those relationships. But my sense is now just to be practical about it, Freezers are seen maybe inappropriately, but they're largely seen as commodities. And then those are sort of relegated to the domain of the procurement people as opposed to technical buyers or scientific buyers. And that just kind of is what it is. So with respect to what will we do to change it, well, we really have to think about the current distributors, how productive they are, where are their strengths, where do they lie? Are there alternative distributors? If we think about a potential to divest the businesses, what's the channel those companies have and how strong are they and whatnot? And then there's also this idea to out-license the technology to someone who just embeds our IP in their own freezers. So there's a lot of stuff swirling, and I'm just thankful we've got some really smart folks here and on the outside helping us navigate the options.

Paul Knight, Analyst

And then the other part, I'm sure, is going on is Sexton and the services side seem to have exceeded your expectations here over the last couple of years. Can you talk to Sexton and the potential there, specifically for therapy again? And what's the magic sauce at services?

Michael Rice, CEO

Yes, certainly. A little while ago, I mentioned that we expect the annual revenue range for Sexton, particularly for an enhanced customer therapy, to be similar to that of biopreservation media, which is projected to be between $0.5 million and $2 million each year. We are currently involved in approximately 140 clinical applications with Sexton, as well as three approved therapies, making this a perfect fit. Additionally, I just received an encouraging update from Dr. Sean Werner, who previously led Sexton and is now working for the current CTO of the platform. A significant existing customer has informed us that they are poised to far exceed their expectations for this year, which is excellent news at this moment. If conditions remain favorable, Sexton is on track for an outstanding year. Regarding our unique advantage, the CellSeal vial features a proprietary design, offering ease of use during filling and specific advantages, particularly for smaller volume doses. This presents a better alternative than using larger bags and the potential complications that may arise. In terms of HPL media at Sexton, we have some distinctive quality and scientific advantages compared to other HPL products, particularly in our manufacturing processes. Our next-generation filling machine is also quite innovative, allowing users to bring their own bags, vials, and other final containers, facilitating a high level of automation. Lastly, we've discussed establishing a media manufacturing line at Sexton for our non-core current media products, and that initiative is progressing well. Overall, the team at Sexton is an excellent fit, and I can't express enough how positively everything has unfolded there.

Paul Knight, Analyst

Okay. And will a sterile bio be part of Freeze and Thaw?

Michael Rice, CEO

Yes, but not to divest potentially divest. No, Thaw stays with us regardless, yes, Thaw stays with us.

Operator, Operator

Your next question comes from Yuan Zhi with B. Riley.

Yuan Zhi, Analyst

So can you guys clarify what was the internal guidance on Media, Freezer and other business segments? And can you elaborate on what are the factors causing the difference between the reported number and the prior guidance or internal guidance in terms of both revenue and gross margin?

Michael Rice, CEO

Sorry, just to clarify, are you asking me to tell you what our internal plan was for that platform?

Yuan Zhi, Analyst

Internal guidance for Media, Freezer and other business segments. What was the reason to cause the difference between these two?

Michael Rice, CEO

Well, okay. So all we speak to is the external revenue guidance by platform, which you've seen, which Troy reiterated on the call just a few minutes ago, and as it relates to the shortfall in Freezer revenue, that's all the factors we've been talking about. There is this macro, very well understood now, well-appreciated slowdown in biotech funding, hitting capital equipment much harder than disposable or recurring revenue streams. And that in concert with just the general global economic uncertainty is causing these large global pharma companies to really take a look at and in many cases, pause their purchases for large CapEx pieces of year. Those two things alone is clearly how we speak to that miss there on Freezers in Q1. But I have to say, as I did a few minutes ago, on balance, the opportunity pipeline that we have for Freezers for the rest of the year, the high confidence deals, it's a big number. And if that materializes and then we sort of replicate that for the last six months of the year, then we're going to be in good shape.

Yuan Zhi, Analyst

Got it. Thanks for the clarification. And assuming you guys continue to keep Freezer business at the moment, are you still on track to reach 50% adjusted gross margin? And can you clarify which factor had an effect in the last quarter? And what is the gross margin in 1Q without Freezer business?

Michael Rice, CEO

We don't conduct that type of modeling externally, and we are aware of that. However, we discuss revenue on a platform basis and outline our midterm aspirational goals. Therefore, I will limit my comments to what I mentioned regarding the decline in capital equipment funding and the economic uncertainty that is causing some order delays. As for our confidence in achieving our midterm aspirational goals, we feel positive at this point with only one quarter completed. However, if we proceed with the divestiture of one or both of these businesses, we will need to reassess our internal models and external guidance, as well as adjust any midterm financial goals we may have set.

Yuan Zhi, Analyst

Yes. Got it.

Operator, Operator

Your next question comes from Carl Byrnes with Northland Capital Markets.

Carl Byrnes, Analyst

Assuming that you get the divestiture of Stirling and CBS done, would you expect that you would be able to reaccelerate your M&A strategy, focusing obviously on the high-growth, high-margin segments as you had done very successfully prior to the Stirling acquisition?

Michael Rice, CEO

Thank you, Carl. That's an excellent question, and it touches on an important aspect of our strategy. To clarify, divesting is not our only option; it's just one of several possibilities. However, if we proceed with divestitures, it would significantly free up our management bandwidth. We would then be less confined and able to concentrate on external acquisition targets. While we would continue to support our internal research and development initiatives and relevant projects, we would certainly have greater capacity to explore opportunities that align with our strengths and expertise. So, absolutely.

Operator, Operator

We have no further questions at this time. I would now like to turn the call back over to Mike Rice, Chief Executive Officer, for closing remarks.

Michael Rice, CEO

Thanks, Mallory. I want to thank everyone for your interest in BioLife and your support, and we do look forward to sharing our Q2 numbers and our results with you. Good evening.

Operator, Operator

This concludes today's conference call. Thank you for joining. You may now disconnect.