Cipher Pharmaceuticals Inc.

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the Cypher Pharmaceuticals quarterly conference call for the company's Q3 2025 results. At this time, all participants are in a listen-only mode. Following today's presentation, instructions will be given for the question and answer session. If anyone needs assistance at any time during the call, you may press the star followed by the zero on your push-button phone. As a reminder, this conference is being recorded today, Friday, November 7, 2025. On behalf of the speakers that follow, listeners are cautioned that today's presentation and the responses to questions may contain forward-looking statements within the meaning of the safe harbor provisions of the Canadian Provincial Securities Laws. Forward-looking statements involve risk and uncertainties and undue reliance should not be placed on such statements. Certain material factors or assumptions are implied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements. For additional information about factors that could cause results to vary, please refer to the risks identified in the company's annual information form and other filings with Canadian regulatory authorities. Except as required by Canadian securities laws, the company does not undertake to update any forward-looking statements. Such statements speak only as of the date made. I would now like to turn the call over to Mr. Craig Mull, Interim Chief Executive Officer of the company. Please go ahead, Mr. Mull.

Good morning, everyone, and thank you for joining us today.

Before I begin, I would like to remind everyone that all figures discussed on today's call are expressed in U.S. dollars, unless otherwise specified. CIFR demonstrating that meaningful growth during the third quarter of 2025, which was largely attributed to the addition and performance of our U.S.-based Natroba business. Sales from Nitroba and its authorized generic, Spinosad, were $8.1 million during the third quarter of 2025, a 4% sequential increase over the last quarter's revenues of $7.8 million, consistent with the product seasonality, whereby head lice and scabies infections are generally more prevalent in the warmer months of the year. Additionally, the Nitroba business continues to have strong profitability. with gross profit of $7 million and a gross margin percentage of 86% during the quarter of 2025. Adjusted EBITDA in the Trova business was a strong result of $5 million, which contributed to our total combined business adjusted EBITDA of $7.3 million during the third quarter of 2025. Consistent with our past track record, our earnings translate directly to free cash flow, which has allowed us to continue to deleverage the business. During the third quarter and after the quarter end, we repaid a total of $17 million on our revolving credit facility, which has now been reduced to a balance of $8 million at the present time. This is an incredible feat, given that we drew $40 million on the revolving facility to acquire the Netrova business just at the end of July 2024. Our CFO, Ryan Mailing, will provide a detailed overview of our financial results following my commentary. I would like to spend the balance of my remaining remarks to discuss our business development activities, which we are very active in and where I am focusing the majority of my time. We have four distinct strategies ongoing at the moment to drive shareholder value, and grow our business. Firstly, it is critical we continue to invest and build upon the Netrova business and the U.S. operations to position it to further grow heading into 2023. To supplement our existing sales approach, we will be launching a direct-to-consumer sales model early in 2023, which is a strategy many pharmaceutical manufacturers are taking as a direct and modern sales approach to the U.S. market. We believe Nitroba is right suited for a direct-to-consumer sales model, whereby permethrin and related OTC products are no longer an effective solution to the needs of individual consumers and families suffering from head lice and scabies. They simply need a better solution and an ability to get it fast when it is needed. Our platform will streamline the process to obtain a prescription, efficiently adjudicate a claim, and provide a convenient local pickup or delivery option to consumers. The strategy also includes partnerships with retailers to ensure that Nitroba and Spinosad is adequately stocked in states and city centers across the U.S. so it is available through this platform. We are excited about our new DTC strategy and will provide more details on the rollout in the coming months. A second area of our business development strategy is we are actively pursuing complementary products which can be directly commercialized through our existing U.S. sales force. We are currently active in discussions with various parties and will continue to provide updates. However, as with all business development, business development opportunities. The activities take time, and the opportunities may or may not come to realization. A third strategy we are pursuing is launching Netroba in Canada, and we are on track to submit our new drug submission to Health Canada during the fourth quarter of 2025. We believe Netroba will fill an unmet need in Canada for highly effective treatment for head lice and scabies, and we will continue to provide updates as developments occur with Health Canada's review and the submission process. The fourth strategy I would like to discuss with you is we are actively pursuing out-licensing opportunities for Natroba globally. We continue to believe there is an unmet need for a highly effective product like Natroba to address head lice and scabies indications in other territories globally. However, we believe it is important to find the right fit with our out-licensing partner for Natroba. Product pricing in territories outside of the U.S. is an important element we must consider when finding the right fit for the out-licensing. With that being said, we are in discussions with various organizations at the present time and hope to provide exciting updates as developments occur in this area. Thank you for joining us here today, and I look forward to answering any of your questions after our prepared remarks. I will now pass the call over to our CFO, Ryan Mailing. Please go ahead, Ryan.

Thanks, Craig, and good morning, everyone. As Craig mentioned at the beginning of today's call, all amounts provided are expressed in U.S. dollars unless otherwise noted. Today, Cipher Pharmaceuticals is reporting results from the company's third quarter and nine month period ended September 30th, 2025. Total net revenue for the three and nine month period ended September 30th, 2025 was 12.8 million and 38.2 million respectively. Net revenue for the third quarter of 2025 increased by 2.4 million or 24% compared to the same quarter in the prior year. Net revenue from the nine month period ended September 30th, 2025. increased by 16.7 million, or 78%, over the same period in 2024. Increases were attributable to the addition of the U.S.-based Netrova business on July 29, 2024, for which only two months of revenue were included in our prior year results, with the three- and the nine-month periods ended September 30, 2024. Product revenue from the U.S.-based Netrova business comprised of the brand Netrova and its authorized generic spinosad was $8.1 million and $22.5 million, respectively, for the three and nine-month periods ended September 30, 2025. Product revenue from the U.S.-based Nitroba business for the three and nine months ended September 30, 2024, was $5.5 million. Product revenue from the Canadian product portfolio for the third quarter and nine months ended September 30, 2025, was $4 million and $12.7 million, respectively. Canadian product portfolio revenue of $4 million increased by $0.2 million or 5% for the third quarter of 2025 compared to the $3.8 million in the third quarter of 2024. For the nine months ended September 30, 2025, product revenue from the Canadian product portfolio of $12.7 million represented an increase of $1.9 million or 18% compared to $10.8 million in the same period of the prior year. Additionally, as the sales for our Canadian product portfolio are denominated in Canadian dollars, when translated on a constant currency basis, Canadian product portfolio revenue for the nine months ended September 30th, 2025, was impacted by changes in the US dollar relative to the Canadian dollar. The impact was nominal for the third quarter. However, when translated on a constant currency basis for the nine months ended September 30th, 2025, Canadian product portfolio revenue increased by 2.2 million representing an increase of 21% over the nine months ended September 30th, 2024. The products comprising our Canadian product portfolio benefited from a combination of increased sales volumes and favorable changes in product mix for certain products. The three in nine months ended September 30th, 2025, compared to the same periods in the prior year, which contributed to the overall increase in revenue. Moving on to our US licensing revenue, Total licensing revenue for the three and nine months ended September 30th, 2025 was $0.8 million and $3 million respectively. Licensing revenue decreased by $0.3 million and $2.3 million respectively for the third quarter and nine months ended September 30th, 2025 compared to the same periods in the prior year. The overall licensing revenue of $0.8 million for the third quarter of 2025 represented a 28% decrease compared to $1.1 million in the same quarter of the prior year. The decrease is due to the Absorica portfolio in the U.S., which contributed $0.4 million of licensing revenue in the third quarter of 2024, a decrease of $0.2 million when compared to $0.6 million of revenue for the same quarter in the prior year. The decline in the Absorica portfolio licensing revenue resulted from lower royalty revenue contributed to by reduced sales volumes and net sales realized by our distribution partner, on which Cypher earns a net sales royalty. This was combined with Cypher no longer earning a royalty on Absorica LD in the U.S. market effective January 1, 2025. We also earned revenue from supplying product to our distribution partner. However, revenue from this remained consistent year in the third quarter. Overall licensing revenue for the nine months ended September 30th, 2025 was $3 million, compared to $5.3 million for the same period in the prior year, representing a 44% decrease. The decrease for the nine months ended September 30th, 2025 was contributed to by the Absaroka portfolio and LipoFint, including its authorized generic. Licensing revenue from Absaroka was $1.7 million for the nine months ended September 30th, 2025, a decrease of $2 million or 54% compared to the same period in 2024. Revenue from Absorca for the nine-month period was impacted by year-over-year declines in product shipments on which we earn revenue from supplying products to our distribution partner. The decline in the Absorca portfolio licensing revenue for the nine months ended September 30, 2025 was also impacted by lower royalty revenue contributed to by lower sales volumes and net sales realized by our distribution partner. on which Cypher earns a net sales royalty. This is further contributed to by lower contractual royalty rates year-over-year. Market share for Absorica in the authorized generic of Absorica was 2.9% at September 30, 2025, according to Symphony Health market data, representing a decrease of 2.7% compared to 5.6% at September 30, 2024. The products continue to face increasing generic competition in related market dynamics within the U.S. market. Licensing revenue from LipoFen in the authorized generic of LipoFen was $1.1 million for the nine months ended September 30, 2025, representing a decrease of $0.4 million compared to the same period in the prior year, attributable to lower sales volumes and net sales realized by our distribution partner on these products, on which Cypher earns a net sales royalty. Selling general and administrative expenses for the three and nine months ended September 30th, 2025 were $3.7 million and $12.8 million respectively. Selling general and administrative expenses for the third quarter of 2025 of $3.7 million represented a decrease of $2.5 million or 40% compared to the same quarter in the prior year. The decrease was primarily attributable to the non-recurring acquisition-related costs of $1.6 million in connection with the acquisition of the U.S.-based Netroba business, combined with $0.7 million in legal costs with respect to an arbitration process, which were incurred during the third quarter of 2024. However, these costs were not recurring in the third quarter of 2025. Selling, general, and administrative expenses for the nine months ended September 30, 2025 of $12.8 million, increased by $3.5 million compared to the same period in the prior year. This increase is attributable to a full nine months of selling general and administrative expenses for the acquired U.S.-based Netroba business in 2025 to date, compared to only two months of selling general and administrative expenses for this business post-acquisition in the same period in the prior year. Additionally, Legal costs associated with the arbitration process were $0.5 million higher for the nine months ended September 30, 2025, compared to the same period in the prior year. These increases in selling, general, and administrative expenses were partially offset by $1.9 million of non-recurring acquisition-related costs in connection with the acquisition of the U.S.-based Nitrobo business, which were incurred during the nine months ended September 30, 2024. However, these costs did not reoccur in the same period in the current year. Net income for the three months ended September 30th, 2025 was 5.5 million or 21 cents per diluted common share compared to 0.3 million or one cent per diluted common share for the same period in prior year. Prior year net income for the three months ended September 30th, 2024 was adversely impacted by 1.6 million of non-recurring acquisition related costs in connection with the Natroba acquisition and 0.7 million of legal costs with respect to the arbitration. Net income for the nine months ended September 30th, 2025 was 14 million or 54 cents per diluted common share, compared to 8.2 million or 33 cents per diluted common share for the same period and prior year. Net income for the nine months ended September 30th, 2025 benefited from the inclusion of the U.S.-based Nitrova business for the full nine months of the period compared to the inclusion of this business for only two months post-acquisition during the same nine-month period in the prior year. However, net income for the nine-month period ended September 30, 2025, was also adversely impacted by $0.8 million of non-cash fair value adjustments associated with the inventory acquired in the Netroba acquisition, which were recognized in cost of products sold during this period. $5.8 million increase in net income year-over-year was further contributed to by the $1.9 million of non-recurring acquisition-related costs incurred in connection with the Natroba acquisition during the nine months ended September 30, 2024, which did not recur during the same period in the current year. Adjusted EBITDA for the three- and nine-month period ended September 30, 2025, with $7.3 million and $21.1 million respectively. compared to $4.1 million and $10.7 million, respectively, for the same periods ended September 30, 2024. This represents an increase of 79% and 97%, respectively, for the third quarter and nine months ended September 30, 2025, when compared to these same periods in the prior year. The increase in adjusted EBITDA was mainly driven by the addition of the U.S.-based Nitrova business for the full period in 2025, partially offset by declines experienced in U.S. licensing revenue. The company had $8.4 million in cash and $13 million in debt outstanding as of the end of the third quarter of 2025. CIFR continues to generate meaningful free cash flow from operations with $10.8 million in operating cash flow during the third quarter of 2025 and $21 million generated from operations for the nine months ended September 30th, 2025. During the third quarter of 2025, CIFR allocated $12 million of its accumulated cash to make repayments on its revolving credit facility and utilized an additional $1.6 million of accumulated cash for repurchase of common shares under its normal course issuer bid. Subsequent to the third quarter of 2025, on October 31, 2025, Safer further allocated a portion of its cash it had accumulated from free cash flows to make an additional repayment of $5 million on the outstanding balance of its revolving credit facility. Accordingly, after making this payment, The company now has a reduced debt balance of $8 million outstanding on its revolving credit facility, and having completed $32 million in total debt repayments during the fiscal year to date, we have made substantial progress towards becoming net debt free. Due to the revolving nature of Safer's credit facility, after making these repayments, we continue to have $82 million of potential financing available to us, comprising $57 million of remaining availability on our revolving credit facility plus an additional $25 million accordion option. Safer's continued strong cash flows from operations, continued with access to capital, put Safer on excellent footing to execute on our business strategy, pursuing growth opportunities, which Craig highlighted during his remarks. We'll now open the call to questions.

Thank you, ladies and gentlemen. We will now begin the question and answer session. Should you have a question, please press the star key followed by the number one on your touchtone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press the star key followed by the number two. If you're using a speakerphone, please lift the handset before pressing any keys. One moment please while we assemble the queue. Your first question comes from Andre Uddin of Research Capital. Please go ahead.

Operator, hi Craig, Brian, and Ryan. Besides looking at your Salesforce and DTC advertising, can you maybe discuss if there's an opportunity for any potential contracts with the military or state prisons for Nootrova?

Good morning, Andre. How are you doing?

Good, thanks.

Very good question. Right now we do have a kind of a strategy pillar where we're working through government contracting as you just said. An example of a recent activity which is just some initial discussions is I participated just the other week in a discussion with the VA and to expand the product through VA and get access there. That was kind of our first step into that, and then we wanted to then move into other government agencies. So there's some traction there, but obviously we don't highlight it because it's at an early stage, but we're certainly moving on it.

And Andre, just to add to that, there are other groups of similar interest to us, including nursing home and retirement associations, school nursing associations, you know, the military obviously is an area that, you know, we think that there's a great demand for this type of product. So we're starting to reshape our sales force more to go after these, what we call pillars of business, where we're focused on associations and groups where we can get our message out much more efficiently and much more cost efficiently as well.

sense and and just maybe could also just going along the same lines can you discuss how the preferred drug listings for Medicaid is proceeding in some of the other states I know you have Illinois but you can still moving forward it is so some of this is you know some of it is kind of ongoing so I'm not able to call it greatly disclosed

You know, the status of those, but what I can say is at the present time, there are a number of states of similar size to Illinois that have our bid, which is submitted to do exactly what you said, which is remove permethrin 5% from the preferred listing and to favor nitroba or spinosadase preferred. So there are a number of states right now with bids in their hands that they're considering. And how that works on an ongoing basis is, you know, the bids come up for renewal annually. In the most part, some of them go by a different tempo. But as we do that, some of the things are, one, we're adding both nitroba and spinosad onto state formularies, which just ensures product gets dispensed. as well as provide them an option and a financially beneficial option to have our product as preferred. So states like that option, and we hope to have some announcements coming forward as states decide on those bids.

I like how you're paying down your debt. I'm just wondering if you could just elaborate a little bit more in terms of in-licensing for your business development pipeline, like what does that look like and where are prices? And that's sort of my last question.

Thank you. On the in-licensing or acquisition side, there are lots of opportunities out there. We're really focused on those opportunities that fit best with our current U.S. operations, and we're in discussions with a number of different companies Opportunities were targets at the moment. Again, as we go through due diligence and the process, obviously some fall off the table, but we're encouraged recently by some discussions and meetings that we have with what we consider to be products that fit well with our structure in the U.S.

That's it for me. Thank you.

Your next question comes from Max Chmielewski of Stiefel.

Please go ahead.

Good morning, guys. Thanks for taking my call. I'm on here for Justin today. But it's exciting to hear you are joining the farm-to-table trend. And I guess on that, if you could give a little bit more detail on how you think about balancing pricing. I know it's not an expensive product at baseline. balancing pricing with volume expectations from the DPC approach and how you're thinking about marrying that with your digital marketing plans.

Hey, Mac.

It's Brian Jacobs here. So, kind of your first question is on pricing. What we've always found is it's difficult when you have a far superior, and when I say superior, efficacious product versus the alternatives to really want to compete on price. And if I take our business aside, I think that that's a losing strategy for anyone. If we have the best product, you're going to command a bit of a premium price. But On the flip side of that is our product is heavily covered on Medicaid and on commercial plans. So really what it is is it's an educational item to a family because if you think about it, an alternative is you're frantic like you may have something like head lice or scabies. But for head lice, you go to a pharmacy and you try and grab someone off the shelf. and you may use it and you run out of it, you may need multiple boxes of that, and it doesn't work. So you're battling with head lice for many weeks. So the cost of that and the cost of the time of that is kind of a problem for families. Whereas our product, once you pay your copay on insurance and get a prescription, you wouldn't be worse off and you would use the product once and it kills all lice and eggs and your kid goes back to school the next day completely lice-free. So part of it is ensuring that people search for the product that works, bringing them into our platform and saying, okay, wow, this is what I want, and then being able to get the product in their hands. And that's why we're working through ensuring that product is available at different retail outlets and giving them a delivery option so it can show up at their door. We think that's going to be a very compelling business model. And like you said, that's the table type approach that we're working towards. And this is a supplement to our existing plan. So we're going to launch this and we believe it's going to be kind of the next phase of growth for the Natrova franchise. and then kind of scale around it from there.

That's helpful. Thank you. And it's my second question is based around one of your pillars of growth and how you're thinking about your overall strategy and out-licensing Natroba in global markets. Where do you think you see the most opportunity? Is it on, you know, to say this with diplomacy, more the emerging market side or developed markets? Are there areas in which permethrin doesn't have the same issue of resistance that wouldn't make sense for a marketplace? Can you just give some color on that?

Sure. Craig here, Max. First of all, let me kind of see if I can address your questions in reverse order. The issue with the resistance of permethrin 5% and 1% is a global issue. And most jurisdictions, if not all, have this resistance problem from permethrin. So our product is going to shine against other products in other jurisdictions as well. The issue that we're finding is that in a lot of these underdeveloped countries or less developed countries, the pricing isn't where it should be for our product. And so we're working with different outfits in perhaps less populated countries or less affluent countries to try to find the best kind of cost slash pricing structure. Europe is a good market for this product, particularly the southern European countries, Spain, for example. And they have, you know, reasonably high reimbursement of drugs in general, and this would fall into that. Some Asian markets as well, including specifically Japan, you know, has a relatively lucrative drug payment plans. So, you know, our focus is going to be in in Europe, particularly Southern Europe, and Japan and a few other Asian countries. Does that address your question, Max?

That's perfect. Thanks, Craig. I'll pass it on.

Thanks.

The next question comes from Doug Lowe of Lead Financial. Please go ahead.

Thanks, operator. And gentlemen, congratulations on the solid cash look order again. So maybe just a housekeeping question. So as you previously announced, your debt levels are down to $13 million in the quarter. Your debt-based financial ratios are well into safe territory. I was just wondering, are you comfortable with current debt levels or do you expect to deploy any supplemental operating cash to bring debt levels down to even lower levels?

Doug, I think, you know, obviously we need to balance our, you know,

priorities and cash availability and deployment. But I think, yeah, we're going to continue to look to repay our debt. There's no reason not to at this point.

We don't have far to go, really. I'm thinking that we're going to start accumulating cash for our next acquisition. And that's really the plan there. We will be debt-free very close to the end of the year. And then from there, we're going to be you know, accumulating cash until we find the right deal.

Well, I infer from that answer then that no product and licensing opportunities that would require new cash would be imminent before debt repayment would be the priority. I assume that's what you're implying with your answer.

Yeah, we're waiting for the right deal to come. And, you know, in the meantime, we'll pay off our debt and we'll Yeah, we'll stockpile our cash in anticipation.

Just to add on, Doug, it's a revolving facility, so we have access to it if they're not needed.

Of course, understood. And then, yeah, just sort of a competitive landscape question. So, you know, one of the key drivers that was originally identified when you acquired Detroba and Parapro was the emergence of resistant strains to permethrin. And, you know, we certainly see that dynamic percolating through the medical literature as well. I mean, I was just wondering, is that reality broadly known within the medical communities where head lice is conventionally treated? Or do you think it would make sense to conduct a small study showing that metroba is more effective than permethrin in resistant strains or treating resistant strains to which is no longer effective. I'm not sure whether that would be a prudent deployment of R&D capital, but just wondered if you'd considered that and if that might be something on the horizon. And I'll leave it there. Thanks.

Hey, Doug. It's Brian. We do have a study that's been out there for a while, dates back to 2015, that just talks about the resistance profile across the U.S. It was conducted across, you know, literally, you know, north, south, east, west states. So covered, I believe, you know, in the high 40s number of states where they collected lice. And... and demonstrated the fact that their resistance and their resistance profile was 98%. And this was done many years ago. So the one thing that you know about resistance over time, it only gets greater. So we use that as part of our communications tool when we're reaching out of positions. It's one of the tools that we have in the toolkit. There is no doubt that part of what we need to do is to get it more ingrained into the medical community. So we're now getting the attention of a lot of physicians, a lot of KOLs that are attuned to this. And an example of that, as Craig said, we're working after different verticals because that's the way to really kind of go about it, tackle things at the school board level, at the long-term care home consortium level. So we have a KOL at the moment who's working through writing a new protocol associated with, you know, if there's an outbreak, this is the product to use, not only because, you know, permethrin, you have to do multiple doses over a period of time while people are infectious, but just the fact that it also may no longer work. The two dosing, when permethrin 5% first came out, it was a one dose dose. And then it was broadly known as you need to do one dose and you need to wait 10 days and then dose again. What's not broadcasted right now is it's probably getting into third or fourth until, you know, if you pour a permethrin on anything, it'll die, but, you know, that it's absorbing into your skin during that time. So it's certainly the best product out there. So ensuring we use the data that we have and attacking it at the right verticals as opposed to a door-to-door approach is, as Craig was describing, that's going to be part of our strategy in 2026.

Great feedback. Thanks, Brian.

As a reminder, if you wish to ask a question, please press star 1. Your next question comes from Tanya Armstrong of Canaccord Genuity. Please go ahead.

Hey, good morning, gentlemen. Just a couple from me. So first on Nitroba, I think, Craig, you mentioned earlier in your remarks that seasonality plays a role here and sales tend to be higher in warmer months. I would have thought that sales are also quite high in that, like, September timeframe when kids return to school. Do you guys see that? And should we expect, then, a downtick in revenue into Q4?

Hey, it's Brian Jacobs here. Nice to meet you. I don't know if we've talked before. Your last part of your question there, do we expect Q4 to be lower than Q3 and Q2? Generally, yes. And, you know, even though Q3 is called the hottest, warmest season and you have back to school, as you indicated, what we did see this year was that... both as opposed to having a huge spike in Q3, we found Q2 and Q3 were more balanced because the stocking and getting ready for it at the wholesale and retail channels happened earlier.

Okay, that's good color. Okay. And with respect to... This came up in an earlier question, but just... getting on some of these bids that you've made to states outside of Illinois to get on their formularies and displace permethrin. Have there been any states that you have submitted a bid and not won that?

No. Okay.

No, there haven't. At the present time, we have a number of states that have the bids that are contemplating it. It's typically what happens there is they give you a – the process works as you approach the renewal of the bid. You submit it, and the states just work where they make the decision. Towards the very end, you kind of hear about it. So we're hoping in the coming months, as we look at some of them renew kind of right on the calendar year, that we'll hear back on those. But, no, we haven't had anyone turn down that as of late.

Excellent. Okay. And then just lastly, and apologies if I missed this in your remarks, but the compensatory damages and reimbursement for legal fees as part of that Sun Pharma litigation, how should we think about that being accounted for in Q4? will there just be a contingent consideration line item on your balance sheet, or have they actually paid you the cash yet, or are they withholding a portion as they appeal to the outcome?

Tanya, it's Craig Mull here.

Most of that arbitration award now is public information, and you probably are aware that Sun has decided to try to vacate the order of the arbitrator, and that's going through New York courts at the moment. We don't know how that will go. I certainly like our position a lot better than theirs. But we haven't received any payment, and I don't think that we will be courting any until we hear what the New York courts say.

Yeah, I can take on that. It's really dependent on, you know, timing of this outcome and what the outcome is. So at this point, it's contingent asset or gain, which you don't recognize until you have certainty on.

And how long do those appeals processes, I know it varies, but for something like this, how long would you anticipate this taking?

I was told by our litigators that it's likely a few months.

Okay, that's all for me. Thank you. There are no further questions at this time.

I will now turn the call back over to Craig Mull. Please continue.

I want to thank everybody for your time today and I appreciate that you joined our call. We look forward to reporting positive news on the coming quarters as we progress with our plans. Again, thank you very much for your time and We appreciate your support and interest.

Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect.