Co-Diagnostics, Inc. Q3 FY2021 Earnings Call

Good afternoon and welcome to the Co-Diagnostics Q3 2021 Earnings Call. All participants will be in listen-only mode. When you need assistance, please signal. After today's presentation, there will be an opportunity to ask questions. To ask your question, please press *1 on your telephone keypad. To withdraw your question, please press *2. Please note this event is being recorded. I'll now like to turn the conference over to Andrew Benson, Head of Investor Relations. Please go ahead.

Thank you, Grant. I am Andrew Benson and joining me this afternoon are members of the Co-Diagnostics management team, including Dwight Egan, Chief Executive Officer, and Brian Brown, Chief Financial Officer. We will begin the call with management's prepared remarks and then open up the call to questions from our analysts. Before we begin, we would like to inform the listeners that certain statements made by Co-Diagnostics during the course of this call may constitute forward-looking statements. Any statement about Company expectations, beliefs, plans, objectives, assumptions, or future events, performance are forward-looking statements. For example, statements concerning 2021 financial and operational guidance, the development, regulatory clearance, commercialization, and features of new products, plans and objectives of management and market trends are all forward-looking statements. The Company believes these statements are based on reasonable assumptions. However, these statements are not guarantees of performance and involve known and unknown risks and uncertainties that may cause the actual results to be materially different from any future results expressed or implied by such statements. Important factors which could cause actual results to differ materially from those in these forward-looking statements are detailed in Co-Diagnostics filings with the SEC. Co-Diagnostics assumes no obligation and expressly disclaims any duty to update any forward-looking statements to reflect events or circumstances occurring after this call or to reflect the occurrence of unanticipated events. In addition, the Company may discuss certain non-GAAP financial measures in today's call. These non-GAAP financial measures should not be considered a replacement for and should be read together with GAAP results. We refer you to the Company's earnings release out shortly before this call, which may contain reconciliations to non-GAAP financial measures presented to the most comparable GAAP results. At this time, I would like to turn the call over to Co-Diagnostics Chief Executive Officer Dwight Egan, Dwight?

Thank you, Andrew. And thank you all for joining us. On this call, we will provide an overview of our results for the quarter, updates on key financial performance metrics, and a discussion of progress against our strategy. Then we will take your questions. This quarter, Co-Diagnostics achieved record sales with strong gross margins, and we're proud that we've been able to deliver on our predictions and exceed expectations while providing valuable products in the ongoing battle with SARS-CoV-2. We believe our international growth along with our clean balance sheet and strong cash accumulation are positioning us to become a leading global molecular diagnostics Company, and the sales momentum we have been experiencing over the last seven quarters continues to demonstrate demand for our products. We have stated before that we agree with experts who believe that COVID-19 will likely involve infection followed by potential subsequent re-infection, and vaccination would likely need to be followed by revaccination, similar to the pattern seen with the flu. For example, researchers with the Public Health Institute, the University of Texas School of Public Health, and the Veterans Affairs Medical Center recently performed a study published in the journal Science. The research showed that the effectiveness of the vaccines from Moderna, Pfizer, and Johnson & Johnson to prevent COVID-19 dropped to 58%, 43.3%, and 13.1% respectively from March to September. The study also indicated that the vaccines' protection against death decreased after six months, especially among older people. As COVID-19 continues to spread, the virus has more opportunities to mutate, potentially resulting in mutations that increase its spread, particularly relating to natural and vaccine-induced immunity. The appearance of new variants may require a coordinated public health initiative for many years to come to fight against COVID-19 and its potential new variants. The Company has also asserted that in order to normalize society, to go back to school, to go back to work, to travel, etc., regular testing with reliable protocols will need to be done. The Company agrees with Dr. Scott Gottlieb, who said on Face the Nation that one of the things schools should be doing is operationalizing testing on a regular basis. We believe that operationalizing testing on a regular basis will be required wherever we intend to normalize and create safe schools, safe workplaces, restaurants, hotels, ships, entertainment venues, and so forth. We anticipate a probable scenario with both vaccinated and unvaccinated individuals returning to the office, increasing the spread of COVID-19. In January 2021, the Biden Administration issued a national strategy for the COVID-19 response and pandemic preparedness plan that stated to control the COVID-19 pandemic and safely reopen schools and businesses, America must have widespread testing. Accordingly, Biden established a $50 billion plan for increased COVID-19 testing, of which $10 billion is allocated to schools to assist in their reopening efforts. Just yesterday, the U.S. Department of Health and Human Services announced that as at-home testing increases, the need for follow-up testing in healthcare settings will likely grow. For example, if someone buys an over-the-counter rapid antigen test at their local pharmacy and tests positive at home, they may seek a healthcare provider who will conduct another test to confirm that result. Accordingly, as part of the Biden-Harris administration's ongoing commitment to increasing access to COVID-19 testing for Americans, HHS will invest $650 million from the American Rescue Plan to strengthen manufacturing capacity for quick, high-quality diagnostic testing through rapid point-of-care molecular tests and increase America's access to them. We believe that a combination of testing, vaccination, and therapeutics will be required to address COVID-19. We applaud the emergence of therapeutics on the market, which go hand-in-hand with accurate diagnostics before they can be prescribed by a physician. As COVID-19 becomes endemic in our worldwide society, testing is likely to become an ongoing part of normal life. Co-Diagnostics was able to achieve record sales in Q3 largely due to the strength of our international partnerships and our business model that involves sales to a large cross-section of customers. This demand, along with continued sales in the U.S. fueled by the rise of the Delta and other variants, has allowed us to recently achieve record sales of our COVID-related products, including the ABC test for flu A, B, and COVID, and our COVID-19 two multiplex test. The former gained clearance to be sold in Mexico in September. Last week, we announced that the latter test has been approved in the United Kingdom, both of which have recently been followed by the approval of our original COVID-19 assay in Paraguay and our direct saliva test being approved in Guatemala. Our original COVID-19 test kit also received regulatory clearance from Anvisa in Brazil in Q3, all of which illustrate our international presence and the success of this model. Importantly, those overseas relationships are now also driving sales not just for our suite of COVID-related offerings, but for our other diagnostic products as well, opening up opportunities for our existing and planned products built on our patented CoPrimer platform to an even larger market. We are already seeing this uptake of Co-Diagnostics products as a driving factor in our emphasis on new infectious disease product development, expanding our product offerings to better serve our important and profitable centralized laboratory segment. CoSara, our joint center in India, recently announced its Saragene Dengue and Chikungunya multiplex RT-PCR tests as an in vitro diagnostic. This CDSCO approval marks the tenth assay manufactured and sold by CoSara to receive clearance from the CDSCO and follows the recent clearance of standalone Dengue and Chikungunya assays last month. In addition to those Dengue and Chikungunya assays and the new multiplex test, CoSara has previously received CDSCO clearance for real-time PCR tests for tuberculosis, Malaria, hepatitis B, Hepatitis C, human papillomavirus, and two COVID-19 assays, all designed using the Company's patented CoPrimer technology and cleared to be manufactured and sold as IVD in the Indian market. In the infectious disease vertical, the Company pursues two business segments. The first business segment comprises our centralized lab customers, of which there have been many hundreds in domestic and foreign markets. This currently drives strong sales in the Company and is a large focus of our R&D efforts as we grow that product pipeline and continue to expand our worldwide network of capable distributors and participating labs in over 50 countries. Future product offerings that are actively in development include a Multiplex SDI panel to detect and differentiate between our four prevalent causes of sexually transmitted infections, for which analytical performance testing is currently underway in collaboration with clinical partners, a Malaria test designed to differentiate between the different species of the parasite known to be resistant to treatment, and an expansion of our Logix Smart ABC test to include Respiratory Syncytial virus or RSV. The development of these tests for our centralized laboratory customers is taking place in tandem with versions that would work in at-home point-of-care settings. This market represents the second segment of the Company's infectious disease vertical, which is being targeted by our forthcoming Eikon platform. The Eikon development continues at a rapid pace with preclinical studies and optimizations in progress to prepare for FDA EUA submission. We believe that the addressable market for at-home and point-of-care diagnostic applications is considerable, and we are optimistic about the potential impact our new platform will have throughout the world, not just for COVID, but for many other diseases as well. The system is designed to be easy-to-use, inexpensive, and fast while maintaining the superior performance of PCR. The result is a low-cost, small footprint platform that can be deployed widely in nearly every setting, comprised of a reusable instrument, a single-use test kit, and a mobile app. Operation is simple and accessible. After introducing an oral rinse or swab sample into the test cup, it is capped and inserted into the instrument. Results are delivered via a mobile app. Sample preparation, RNA, DNA amplification results, interpretation, and reporting, are automatically performed by the system. The system is capable of addressing other testing needs in the future, including the expansion to a variety of multiplex assays. During our last quarterly call, I remarked that the Company has been vigorously pursuing the Eikon development, and we are very aware of competitive offerings seeking to attract the same fast market that we envisioned. Co-Diagnostics believes this versatile platform will exceed the overall capabilities of competitive offerings, checking all the boxes of being a low-cost, fully integrated, sample-to-answer molecular diagnostic system designed to meet all the three criteria of being cheap, fast, and accurate testing. But Eikon also includes certain key differentiators compared to other less robust at-home or point-of-care systems. Eikon test results are PCR gold-standard results compared to less accurate antigen test results. Moreover, going forward, the Eikon platform will facilitate significant multiplexing results compared to other non-PCR technologies that, while molecular, do not provide the same multiplexing opportunities. Many diseases present with similar symptoms. Syndromic panel Eikon testing or testing of several infections with one patient sample with a single test, such as flu A, flu B, RSV, and COVID, will provide robust testing with multi-analyte differentiation as compared to non-PCR-based testing protocols from our competitors. In our last call, I also indicated that we anticipated being able to provide updates on the validation and timeline for submission for an emergency use authorization with the FDA for the device and initial tests by the next earnings call. Accordingly, I'm pleased to announce that a significant user factor study is currently underway, which will be followed by a clinical trial that we expect will commence in December. After the conclusion of the clinical trial, FDA EUA, CE marking, and CDSCO clearance submissions will be completed as soon as possible. The key to getting it right with the Eikon platform is not just for the short term; rather, it is a long-term strategy that enables the Company to play a significant potential role in syndromic panel testing, covering a large number of ongoing pernicious infections, all with the primary speed and cost benefits of an antigen test, while also delivering gold-standard PCR multiplexing compared to non-PCR molecular tests. We believe the overall value proposition of this product has the potential to leapfrog over Diagnostic Systems currently in place, as well as open up at-home and point-of-care markets with a better product than those developed using less robust technologies. From the creation of the CoPrimer technology to the engineering of this device, to the human factor studies and focus groups to the regulatory team, this product development represents a high level of innovation, expertise, and skillsets, which together forecast a successful future for the product and the Company as a whole. Immediately upon receiving regulatory authorization, the Company expects to conduct sales campaigns to a vast number of potential clients, which include outreach to the public sector, including schools and college campuses; enterprise sales, including airlines, theme parks, cruise ships, restaurants, entertainment venues; healthcare sector sales, including dental offices; and of course, the residential or individual consumer sector. The Company's infrastructure is currently being enhanced to address our product launch. The Company's strategy goes well beyond COVID-19 to address many infections that were here before COVID, and like COVID will continue to require diagnostic testing in the future. At its core, the strategy for the Company includes utilizing the conditions brought about by the pandemic and leveraging those conditions into a bright future for Co-Diagnostics, including a potentially explosive at-home and point-of-care diagnostic market. In addition, as a platform technology Company, Co-Diagnostics and our CoPrimer platform have applications extending far beyond COVID and infectious diseases. These include liquid biopsy for cancer detection, the development of which is ramping up as we position the Company to take part in this historic and challenging development in human healthcare. The exquisite specificity of CoPrimer has shown excellent capabilities in the detection of cancer mutations present in human blood, and a panel is being developed that detects six of the most common single nucleotide mutations of the EGFR gene associated with non-small cell lung cancer. This panel is undergoing performance verification with clinical samples. Negotiations are in process with clinical partners for further development and clinical evaluation. Other assays are being developed for several pathogens of significance in dentistry, mental health, and veterinary medicine. Analytical performance is being evaluated for these assays with partnerships in each of these areas. Progress in our agricultural vertical also continues, including our work with Bayer Crop Services and LGC. The Company is under contract with Bayer pursuant to an ongoing proof-of-concept project using our pending NGS library prep technology. Overall, we believe that our strong profits are positioning Co-Diagnostics well for these and other future growth initiatives as significant investments in talent and R&D continue to yield positive results. The Eikon platform has been designed from the beginning to operationalize testing regularly in at-home and point-of-care settings. It is the optimal solution, not only for COVID, but for other infectious diseases that will be added to our testing menu over time. It is inexpensive, fast, and accurate with gold-standard PCR results, and capable of multiplex syndromic testing going forward. We believe that our history of remaining ahead of the curve since the onset of the pandemic will continue to drive this trajectory of growth. This concludes my initial remarks. Let me now turn things over to Brian Brown for a review of the key metrics and numbers. Brian.

Thanks, Dwight. Our third-quarter revenue marked another record milestone for the Company, totaling $30.1 million for the quarter. This represents an increase of $8.3 million or 38% from the prior year period. The increase is primarily due to the continued strong sales growth of the Logix Smart COVID-19 test. Gross profit for the quarter totaled $26.8 million, an increase of $10.8 million or 67.5% from the third quarter of 2020, reflecting the ongoing COVID-19 pandemic. Our gross margin percentage of 89% for the quarter increased from 73.3% in the third quarter of 2020, reflecting continued improvement in our manufacturing processes and a shift in our product mix compared to the prior year period. Year-to-date revenue grew to $77.5 million, an increase of $30.1 million or 63.4% year-to-date gross profit ended the quarter at $68.4 million, up $33.3 million, an increase of 94.7% from the prior year period. Year-to-date gross margin percentage of 88.3% increased from 74.1% in the comparable prior year period. Total operating expenses for the quarter were $13.2 million up from $4.0 million from the third quarter last year. The higher operating expenses were driven by expected increases in both sales and marketing costs and our research and development expenses. Sales and marketing expenses for the third quarter increased by $3.5 million compared to the third quarter of 2020, primarily a result of higher third-party commissions on higher international sales. Our research and development expenses were up by $5.0 million compared to the third quarter of 2020, primarily related to planned expenditures of $4.4 million for our at-home and point-of-care device. Total operating expenses for the nine months ended September 30, 2021 were $32.6 million, up from $9.5 million for the first nine months of 2020. The increase in expenses reflects the same sales and marketing and R&D expense increases identified for the third quarter. Third-quarter income from operations was $13.6 million, up from $12 million for the third quarter of 2020, primarily a result of increased sales and gross margin, offset by increased operating expenses, as earlier described. Year-to-date income from operations was up 39.3% to $35.8 million, representing an increase of $10.1 million from the same period in 2020. Income before income taxes in the third quarter was $13.6 million compared to $12.8 million in the prior year comparative quarter. For the nine months ended September 30, 2021, income before income taxes was $35.4 million, up from $26.8 million for the nine-month period of 2020. Income tax expense for the third quarter was $2.1 million, reflecting an effective tax rate of 15.5%, and for the nine-month period, income tax expense totaled $6.2 million, representing an effective tax rate of 17.6%. Our effective tax rate will generally differ from the U.S. federal statutory rate of 21% due to state taxes, permanent items, and discrete items. For both the three and nine months ended September 30, 2020, we recorded a benefit from income taxes resulting from releasing our valuation allowance due to current and future positive pretax income results. Third-quarter net income was $11.5 million or $0.38 per fully diluted share compared to a net income of $15.7 million or $0.53 per fully diluted share in the prior year quarter. The decrease in net income was a result of increased income tax expense when compared to Q3 of 2020. Our balance sheet has remained strong through the end of the third quarter with cash, cash equivalents, and marketable securities totaling $83.9 million at September 30, 2021, an increase of $36.6 million from December 31, 2020, and up $11.5 million from the second quarter of 2021. With a highly liquid, no debt balance sheet, we remain solidly positioned to continue executing on our strategic growth plan by investing in our people, processes, and research and development to drive future growth. As we discussed during our previous earnings calls this year, we planned for increased sales and marketing and R&D expenses in the third quarter of 2021, and we were still able to significantly grow our cash balance, reflecting our strong debt-free position. Now turning to cash flows. Net cash provided by operating activities during the nine months ended September 30, 2021, was $36.2 million compared to operating cash flows of $8.2 million for the prior year period. This significant increase in cash flow from operations was primarily due to continued process improvement and our strong revenue growth, reflecting the hard work of our people. Our team's efforts continued the strong momentum from the first half of 2021, and we are very pleased with the solid results we anticipate achieving for the year. Turning now to our guidance. We expect full-year revenue in the range of $96 million and $100 million, reflecting continued strong domestic and international demand for our products. We also anticipate full-year diluted earnings per share in a range of $1.07 to $1.16, which includes the effect of continued R&D spending on our new diagnostics platform and investments in our people and processes. Additionally, included in the earnings per share guidance is an expectation of an effective local state and federal tax rate of 18% compared to an immaterial tax expense for the full year of 2020. We are very pleased with our strong financial position, which enables us to invest in significant growth opportunities, such as the Eikon platform. We will continue to build upon our solid business foundation and are in a strong position to continue progressing the Company forward. With that, I'll now turn the presentation back over to Dwight.

Thank you, Brian. That concludes our prepared remarks. Operator, we are ready to begin the question-and-answer portion of the call.

We will now begin the question-and-answer session. To ask your question, please press *1. If you're using a speaker phone, please pick up the handset before pressing the keys. To withdraw your question, please press *2. At this time, we will pause momentarily to assemble our roster. Our first question today comes from Yi Chen with H.C. Wainwright. Please go ahead.

Thank you for taking my questions. Firstly, could you please provide some color? What percentage of the revenue was generated in the U.S. during the third quarter?

Yes, we can provide that for you. So in the third quarter, just one second let me grab my paper; there it is. In the third quarter, revenue internationally was approximately 44% and in the U.S. it was about 56%, which for the year-to-date, ends up at 55% international and 45% domestic, which is very consistent with what we said at the beginning of the year in our call.

Got it. Thank you. And based on your annual guidance for 2021, it appears that for the fourth quarter you project slightly over $20 million, which is meaningfully lower than the third quarter's $30 million. So can you comment on the trend in the top-line revenue growth going forward?

Thank you, Yi, for that question. We have been involved in the COVID-19 test supply business since the beginning of the pandemic. We have seen the ebbs and flows of the COVID-19 virus as it goes through what is typically referred to as waves, which are driven by different factors, such as the Delta variant. We are somewhat at the mercy of what's going on in the context of the waves of any particular COVID status. What we have also maintained is that COVID isn't going away, and like Dr. Michael Osterholm opined early on, COVID is going to be with us indefinitely. So we do expect to see ebbs and flows, and peaks and valleys in terms of ongoing demand for COVID as the country seeks to operationalize and as schools and businesses try to reopen. We think there will be constant demand for COVID at one level or another. Our goal as a Company— and we started this over a year ago—was to look into the future and create a product, which is the Eikon platform, that intends to address the operationalizing needs of the world with an elegant system that is fast, accurate, and inexpensive. We began that project over a year and a half ago and are reaching the final stages before being able to introduce that product. We believe we have a very good operational runway into the product introduction, at which time we think we will be able to take advantage of the operationalizing of the testing going forward across the many at-home and point-of-care environments. Therefore, we don't want to be overly aggressive in trying to predict how the waves of COVID will impact us. In the U.S. and abroad, there are definitely hotspots here and there. What I can say about the United States is that it seems to be plateauing at a very concerning level with almost 1,200 deaths daily still occurring in the country. It's challenging to predict, and that is reflected in our cautious guidance, but we believe that COVID will remain a highly needed testing environment for the foreseeable future, and by that, we mean for the years to come, which is why we have developed a product to address that in at-home and point-of-care settings. We also look forward to leveraging our Eikon platform to test beyond COVID. Many diseases are far more prevalent than COVID, and we expect to address those as well with our new Eikon platform, which is a really elegant optimal solution.

Got it. Thank you.

Our next question comes from Jason McCarthy with Maxim Group. Please go ahead.

Okay. This is Nathan on for Jason. Thanks for taking our call, and congrats on the quarter, by the way. New data from Pfizer is suggesting an effective treatment for COVID-19 using an oral antiviral. Do you think this suggests the market could eventually shift towards symptomatic testing, similar to the flu? Additionally, how big do you think that market potential is, and who do you think the players are that could compete in that market? Where do Co-Diagnostics fit into this?

When we talk about our first impressions with respect to an antiviral therapeutic, which as I mentioned in my remarks, we applaud the introduction of that. In many ways, I wonder why it took so long to bring about. But this is something that anybody can see is going to require a diagnosis before someone gets that treatment. I would urge the listeners on the call to do your own research regarding the projected cost of that therapy. It is an expensive therapy, and not something that will be prescribed lightly. However, this will drive additional testing, as testing will be required to obtain the therapeutic. As you know, things like the flu infect between 5% to 20% of the worldwide population; we consider it to be about 8% to 9% of the global population that contracts the flu, which is one of the reasons we focused on our upper respiratory ABC test. Going forward, we indicated that we would be adding RSV to that same panel, what we refer to as a syndromic panel because we're testing for more than one disease state with the same sample in the same test run. We believe the upper respiratory area has been where many of the legacy players that have done syndromic testing have focused. The upper respiratory panel is one of their main sellers. We're eager to compete in that space and provide an upper respiratory syndromic panel for several key infections at a cost structure that is just a fraction of current market offerings. With respect to competitors in the antiviral therapeutic space, I'm not the expert there, so I encourage you to conduct your own due diligence, but we are very excited about the introduction of therapeutics as we expect it to drive additional testing. We look forward to expanding testing availability in the United States and other markets, including India, where we currently partner with about 200 laboratories. Given the vast number of testing laboratories in that country, we are optimistic about the potential for molecular testing using our product at a reasonable price point.

Thanks for taking my question, and once again, congrats on the quarter.

Thank you.

Our next question comes from Theodore O'Neill with Litchfield Hills Research. Please go ahead.

Thank you and congratulations on the quarter. Two questions about the Eikon products. The first one is, how are you dealing with what everyone else is seeing as supply chain issues as you design the product? And the second question is, will that product also have applications in the agricultural or livestock environment market?

Thank you, Theo. We're obviously very excited about everything related to Eikon. It's a platform that will handle basically any RNA or DNA product that we wish to interrogate. Currently, we are focused on dealing with saliva samples, and we have conducted extensive innovative work with direct saliva that is extraction-free and lyophilized, or freeze-dried, all of which has been applied to the Eikon chemistry. We're very enthusiastic about the various markets we will be able to address in this capacity, including in dentistry. There’s a significant market for dentists testing for diseases like periodontal disease, which may contribute to the development of conditions like dementia and Alzheimer's. There are fascinating tests being developed in our lab with partners within dentistry, veterinary medicine, and other areas targeting various disease states. Furthermore, the Eikon could potentially play a significant role in testing agricultural products, such as corn, wheat, and soybeans, especially where they're examined on-site before a delivery is accepted by clients like Monsanto or Bayer. Therefore, we see vast opportunities across many industries for its introduction. However, bear in mind that certain areas will require FDA processes, while others, like our mosquito vector business, do not require FDA involvement. So we don’t face the same regulatory hurdles there. Not everything will require FDA clearance; areas such as surveillance testing in schools and workplaces may also become part of our future offerings. We find that while we completely comply with the guidelines set forth by the FDA in the context of COVID, there are areas where we may not need their clearance.

And what about design issues so that you don't run into problems with supply chain challenges that other manufacturers are encountering?

So far, we have not identified any supply chain issues with our Eikon platform. Our manufacturing will be done in the United States, and we currently have a large user factor study ongoing. Shortly, we will commence our clinical trial, and we are optimistic that supply chain issues will not affect us. Much of what occurs with Eikon depends on cloud technology. Samples are taken locally, and once placed in the testing device, testing proceeds through cutting-edge technology engineered by highly skilled experts and results are delivered through a mobile app. That means clinical operations are less dependent on physical supplies than other platforms.

Okay, thanks very much.

Ladies and gentlemen, this will conclude our question-and-answer session. I'd like to turn the conference back over to Dwight Egan, Chief Executive Officer, for any closing remarks.

I would like to conclude the call by thanking our employees and distributors for their dedication and action in helping to deliver outstanding results this quarter. Given the importance of today's date, I would also like to take a moment to recognize our servicemen and women for their service and bravery in building a better future for the rest of us. Those who stand as an inspiration to us all. I can tell you that because of our exposure in the developing world, people are thrilled to gain access to US-engineered diagnostic products at affordable prices that are relevant in their countries. We are proud to be Americans, and we're proud to showcase the capabilities we have, largely thanks to those who protect our freedoms. Thank you for your interest in our Company and joining us today for our third-quarter call. We look forward to talking with you all again following the fourth quarter.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.