Chembio Diagnostics, Inc.

up to an aggregate of $60 million of shares of common stock. Subsequent to the event at the end of the second quarter, as of July 26, 2021, $36.9 million of gross proceeds have been raised for the company's ATM program from the issuance of 8,323,242 shares of common stock at a weighted average price of $4.43. Net of the placement fee and other transaction costs, the company realized estimated net proceeds of approximately $34.7 million. Net working capital as of June 30, 2021 was $15.9 million. As you likely saw from our press release this afternoon, we have determined the current and potential conditions many of which are outside our control, raise substantial doubt about the company's ability to continue as a going concern within one year after the date that our second quarter financial statements are to be issued, which we are planning to do by filing our Form 10-Q on Monday. To help people understand that, we elected to include a fair amount of detail about the going concern considerations in the press release we issued this afternoon, so please refer to that. The takeaway is that while we are pleased with the success we had in July in strengthening our liquidity position, particularly by raising capital through the ATM and finally receiving the significant purchase orders, the technical analysis under GAAP requires us to consider, for example, how the uncertainties around the delivery of the full number of tests covered by the new significant purchase orders and other customer orders may be affected by limitations of the company's supply chain, staffing and liquidity, uncertainties regarding the achievement of milestones and related recognition of revenue under government grants and other matters outside the company's control. However, under GAAP, the going discern analysis does not give effect to the prospect of raising additional capital pursuant to the ATM offering and other mitigating plans, many of which are beyond the company's control. Again, please refer to the press release for further details. I'll now turn the call back to Rick for concluding remarks. Thank you, Neil. To conclude, we are as confident as ever in ChemBio's ability to drive deeper penetration into the rapid point-of-care diagnostic testing market. We continue to invest resources to broaden our product portfolio, and we remain committed to our strategy of prioritizing high average selling price markets. We are laser-focused on driving long-term growth on a path to profitability. Recently, we made tremendous progress both on our regulatory and commercial fronts. We are encouraged by the recent large purchase orders we received for our DPP SARS-CoV-2 antigen test and our HIV-1.2 STATPAC test. We look to build on this recent positive momentum as we enter the second half of the year. We also look forward to working with the FDA, as well as other key stakeholders, such as BARDA, as we work our new products through the regulatory channels. With that, operator, please open up the call to questions. Thank you.

Thank you. Ladies and gentlemen, the floor is now open for questions. If you have any questions or comments, you may press star 1 on your phone at this time to join the queue. If your question has been answered and you no longer wish to ask it, you may press star two to withdraw your question. We do request that if you are listening on speakerphone to please pick up your handset for optimum sound quality. Once again, if you have any questions or comments, please press star one on your phone now. Our first question today is coming from Per Ostlund at Craig Hallam Capital Group. Your line is live.

Great, thanks and good afternoon, everybody. I want to start out with the sizable orders that you've announced here over the last couple of weeks and so first and foremost congratulations on those. Maybe a big picture I guess philosophical question if I I'll use that word for it. Given the order out of Brazil specifically the 28 million dollar order there that's obviously gigantic when juxtaposed against other orders you've received in the past and frankly just you know yearly revenue that you've generated. company-wide across geographies when you when you take an order like that how much do you consider or I guess feel you need to consider your ability to fulfill it and the reason I guess I asked that as you you called out some of the caveats from that press release you know like supply chain and staffing and liquidity I have to think that was such a large or a long-standing partner in BM and Gwinos that you want to be extra careful to get that right and not take on too much I guess generally speaking, what are your thoughts around that first and foremost?