StageZero Life Sciences Ltd.

Good day, ladies and gentlemen, and welcome to your Stage Zero Life Sciences Second Quarter Financials Call. All lines have been placed on a listen-only mode, and the floor will be open for your questions and comments following the presentation. If you should require assistance throughout the conference, please press star zero to reach a live operator. At this time, it is my pleasure to turn the floor over to Rebecca Greco, Head of Investor Relations. Ma'am, the floor is yours.

Thank you very much. Good morning, everyone, and thank you for joining the Stage Zero second quarter 2021 conference call. Joining me today is Stage Zero CEO James Howard Tripp and Pepticel Health Clinic's chairman, Richard Houston. Please note that management's discussion today will contain forward-looking statements about anticipated results and future prospects. Forward-looking statements involve a number of risks and uncertainties, and Stage Zero's results may differ materially from those discussed today. Investors should consult the company's ongoing quarterly filings and annual reports for additional information on risks and uncertainties relating to those forward-looking statements. Investors are cautioned not to rely on these forward-looking statements. The company disclaims any obligation to update these forward-looking statements except as required by law. On today's call, measurement will refer to non-GAAP-adjusted EBITDA. This metric excludes certain items discussed in our press release under the heading Discussion of Non-GAAP Financial Measures. and any other items that management believes should be excluded when reviewing continuing operations. The reconciliations of Stage Zero's non-GAAP measures to the comparable GAAP measures are available in the financial tables of the Q2 2021 financial results press release on Stage Zero's website. With that introduction, I would like to turn the call over to James Howard-Tripp, Stage Zero's Chief Executive Officer. James, please go ahead.

James Howard- Thank you, Rebecca, and hello, everyone. Thank you for joining us today. To begin with, I'd like to introduce Richard Houston, who's the Chairman of PEP T-Cell, the parent company for Health Clinics Limited. Richard is to join the Stage Zero Board on closing. Welcome, Richard. It's a pleasure to work with you and the group.

Likewise, Jim. Thank you very much for the introduction. On behalf of all my colleagues in the health clinics, both in the U.S. and the U.K., we couldn't be more excited to be part of this. Thank you once again for all the efforts in making this possible. Back to you.

Thank you. Yes, and I think we share the sentiment. I think we've got a very bright future ahead. So now back to the quarter. In the second quarter, we recorded good year-over-year growth in our testing revenue, mostly COVID-related, with rising concerns over the new viral variants and we expect that our COVID testing revenues will fluctuate quarter to quarter, but be closer to the Q1 levels on a quarterly basis through the remainder of the year as more businesses, schools, and other organizations reopen, which I will talk more about in a moment. More importantly, on August 16th, we signed the definitive agreement to purchase Health Clinics Limited, which operates our valued partner, Care Oncology. This is truly a watershed event in the history of State Zero and combines two revenue-generating companies that are engaged in the early detection of cancer in other disease states. This will double our employee headcount, make us far more vertically integrated, create unique cross-selling opportunities, enable our broader use of telehealth to reach millions of consumers and employers. We've been putting the necessary managerial and operational pieces in place to ensure that we hit the ground running as we complete this acquisition and that we make the most of the business opportunity ahead of us. Key in this is to now begin to book revenue in the combined entity as we open up the overt Aristotle programs and initiate interventions with the backlog of patients. In terms of synergies and anticipated benefits, it starts with significantly greater scale and access to the marketplace. The COVID-19 pandemic fundamentally changed the way healthcare services are provided, most notably with an enormous shift to telehealth. And we expect this transformation will be largely permanent. As you may recall, we launched AVERT, a comprehensive telehealth program, in partnership with Care Oncology to help patients reduce the risk of developing cancer and other chronic diseases through early interventions. The AVERT program provides convenient access to our advanced cancer screening, including, one, Aristotle, a blood test that uses mRNA technology to help detect the signatures of nine specific cancers in women and six cancers in men, two, colon sentries, a seven-gene blood-based biomarker panel that can stratify patients according to the current relative risk of having colorectal cancer. Three, Prostate Health Index, or PHI, an FDA-approved blood test that can help differentiate prostate cancer from benign conditions in men with elevated PSA. And four, Breast Sentry, which measures the levels of two biomarkers that are highly predictive of a woman's risk of developing breast cancer. Stage zero and care oncology share an understanding of the new model for a successful patient journey. And this journey can't start if the patient isn't aware of the life-changing services we offer. So our focus is on reaching out directly to patients, to employers, their employees, to ensure potential patients are able to make the best choices for their individual healthcare needs. there are three factors that underpin our strategic approach to the new healthcare environment. One, technology, two, physicians, and three, extensive medical networks. To treat our patients effectively, we need, first and foremost, a strong telehealth platform. Simply put, care oncology provides us with that platform, which ensures that we have the right IT infrastructure in place to take full advantage of this important medium. Second, we cannot underestimate the importance of the physician in this equation. The physician guides and helps the patient on their individual journey. If cancer is evident, the physician will refer the patient to a primary care provider or to a specialist for active surveillance or treatment as needed. This leads us to our third strategic factor, medical networks. Care oncology provides the clinical interventions that are critical to helping patients stay well and avert chronic disease. To succeed in the post-pandemic healthcare space, we also need an extensive network of clinics and physicians, including oncology specialists, nurses, and dieticians, and they all play a critical role in making patients well. Additionally, the acquisition will provide us with the ability to serve some of the largest employees in the country and add multiple new revenue streams, including care oncology's fee-based services and annual memberships. In sum, we are exactly where we want to be with respect to liquid biopsies, telehealth, and early disease diagnostics, three of the most critical areas in healthcare today. As part of the managerial changes I mentioned, as announced, we've appointed Matthew Pietrus as our new Chief Financial Officer and Chief Operating Officer, effective at the end of this month. Matt has an outstanding track record. Most recently, the VP of Finance at Savvy Biopharma. Matt also comes from Big Pharma, comes out of the AstraZeneca, MedImmune side, and so actually has extensive large pharma experience as well. Matt, in addition to leading the finance function, including oversight of accounting, financial reporting, analysis and controls, and investor relations, Matt will lead our operations, including our U.S. lab in Richmond, Virginia, which will become a walk-in clinic offering all of the testing services from COVID to cancer that we provide. Matt is based in Washington, D.C., near the Richmond lab, and Roy will work directly with him. Hiring a talented and motivated life sciences executive like Matt is another important milestone for us. His accounting, finance, governance, capital raising, and regulatory experience, not to mention his life sciences experience, will be a valuable asset as Wittmann stays here as a commercial state healthcare solution company. The addition of the health clinics team is also a huge plus and markedly expands our executive capability. We will get to introduce these over the next short while. I believe some of you have already had interaction with some of them. For example, Dr. Padman Vamadavan out of the U.K. and Dr. Charles Meakin, an oncologist out of the U.S., have both done video clips for us. And we will take time to get you more broadly introduced to the team as it works out. But this is an absolutely critical piece for us. We not only expand executive capability, but we significantly expand our expertise. Together with this, we'll continue to expand our management team and the board of directors. We are moving the board to seven full members. Within this, we will look at increasing our diversity. And we'll do this to build a larger enterprise as we pursue our mission of reducing late-stage disease diagnosis through early detection and delivering personalized health management through telehealth. So turning to the COVID testing business, this business continues to help strengthen our organization and position us to achieve our broader goals. It has done marvelous things for us. Yes, on a revenue side, that is always very good. But even more importantly, in terms of helping build out our capability as a lab, and particularly expanding our expertise within the telehealth aspect of the entire mobile phlebotomy network, all of which is critical. As you may recall, early in 2020, we began leveraging our specialty in polymerase chain reaction, or PCR testing, for the early identification of cancer through blood to provide both COVID PCR testing, which used the swabs and salivars, as well as antibody testing used blood analysis that we now have included as well. Thus far, we have generated approximately 6 million from COVID testing, including approximately 3 million in 2021. Given the spread of the new viral variant and the expectation that more people will return to the office and or classroom-based environments in the fall, we expect a more steady testing revenue in the second half of the year. In Q2, Rexall, a leading drugstore operator with more than 400 pharmacies across Canada, began offering state-zero branded COVID-19 tests at 233 of its pharmacies. The kits are now available in pharmacies across British Columbia, Alberta, Saskatchewan, Manitoba, and Ontario, and are being distributed through our partner, iCall Blood Services. Individual test kits as well as to use the test kits are available for purchase and pricing includes the shipping and handling of the test samples. Testing requires an online appointment for specimen collection, supervision and guidance on returning samples to the lab and customers receive their test results within 24 hours after their samples arrive at the lab. We've been very successful with our testing program because we've been flexible in our approach as the pandemic has evolved and as public policies have adopted. We are one of the very few groups out there that actually offer end-to-end solutions. Most labs simply provide testing. We provide solutions. And this is actually beginning to play out very well for us. We will shortly be introducing a program called Border Pass. Border Pass is specifically focused on the business travelers that move between the U.S. and Canada. There are close to a million of these from the Canadian side alone. Everyone needs to get tested both sides of the border. It is difficult to test one side, travel to the other, find a solution, get back. We have resolved this with a combined kit. We are unique in that we are actually the only company that has testing solutions approved on both sides of the border and look for border pass very shortly. As a result of this, it has allowed us via VFS, which is the largest of the global visa groups, to link as a formal partner with IATA, the International Air Travel Association, and we are initiating travel on their behalf. At this point, I should say travel testing on their behalf, and so look for that over the next short while as well. At the end of last week, we're in to deal with together with our partner Flem Finders in the U.S. to test Banner Health, one of the larger healthcare groups in the U.S. And we will very shortly initiate testing employees in California. In addition to this, along the lines of what we've done with Maricopa County, we are talking with additional cities about the assumption that they do come to fruition. We would look for a marked step up in testing as well. So I work through this as an indication of why we remain confident that we will continue to see good revenue from COVID as we continue to move throughout the year. I'll move now to care oncology, AVERT, Aristotle, and the cancer testing. It's important that we talk to this in a fair degree of detail. in that, one, it's a very complex deal to put together. It involves three different countries. Two, these deals are normally negotiated, and then integration occurs afterwards. So you can see the signature is definitive, and truly working together takes some time. We've been very different with that. The deal, even though it's taken longer than we initially thought it would, has gone through actually very speedy. But much more importantly, the companies have been working together literally from the beginning of the year, stepping it up markedly in the March time period to where, as we find the definitive yesterday, we are essentially virtually integrated at this point. And that allows us to move forward immediately, which is just a huge advantage. Talking about working with health clinics, we've been talking to them for well over a year. Richard can definitely attest to that. We made the decision that we should work together, and I think the longer that we kept talking, the more apparent it became that there was a very real opportunity to look for the sort of one plus one equals three synergy that you get from combining entities. We made that decision in March of this year to do that. The health clinics group was extremely accommodating in working with us in terms of inviting us in, and as we mapped out what the patient journey would be, we mapped out where we would get the best leverage from a revenue generation perspective. We mapped out the patient journeys to make sure that we were comprehensive in this, Cancer is not COVID. You don't go to the drugstore, buy a test, and it's done. When you're looking for cancer, you need a very comprehensive solution around it. It's not only regulatorily required, it's ethically required. And it became important to do that. The other piece that we've talked about very consistently through this is the very significant changes in the marketplace that have occurred as a result of COVID. One will see that if you look at the Q2 results from all of the reporting companies at this point. Everyone has been affected and continues to be affected. And so our approach to launching innovative programs like Aristotle was to do it together with Avert, not individually. A big surprise for us was when we took Aristotle out, was that we started to get a lot of requests for the single test. And so you'll see that we've introduced single tests alongside Aristotle as all of this moves through. We had anticipated a June combination, and we were looking to begin booking revenue at that point. And I'll just explain all this. We could have done Aristotle tests individually. We are running Aristotle tests on an ongoing basis. but it would have been fragmented and it wouldn't have run within the process. So we would have had a very short-term game, but a whole series of problems to deal with as we moved down the road. We instead took the decision to actually queue the patients up. So we have qualified the patients. We have queued them up. They sit in a backlog waiting to begin. And what we did was wait for the actual combination because it drives through. And I'll explain this in just a moment as well. So we ran tests, we set up the promotional campaign, we established the integrated infrastructure, and we can now begin to book consolidated revenue. Our initial approach was to build up off of TREAT. And TREAT is what we call the treatment program or the adjunctive treatment program that incorporates the care oncology protocol for critically ill patients with cancer. If you look at what we were able to do as we expanded, if you think about it, private company being care oncology, public company being stage zero, there's a lot of leverage off of the pieces. And so literally, in the traffic into the treat program, traffic is up over 1,000% since January. All of this is giving us more COC protocol patients. We have leveraged this into AVERT. And for example, traffic is up on the website over 55% in the last 30 days. And as we talk about this, we're not talking about tens of thousands of patients. We're well over 100,000 patients as we drive them through. So we're getting very, very significant traction. As we focused on Aristotle, as I mentioned, we were pleasantly surprised at the demand for the additional test. We've added all that in as well. And we're now at the point at which we can leverage it. We've had some interesting discoveries along the way. For example, with breast entry, one of the biomarkers is in actual fact or can in fact be used to measure apoptosis in cancer. And so we're actually finding an ability to pull the sideways and to actually use it in the treat program. So we get to expand continually as we move on down. We're now about ready to begin taking payment for the overt Aristotle cancer test and begin to complete the patient journeys for the people. We've built out our physical presence in Los Angeles and in Richmond. Richmond is going to be important for us. Richmond is a key area in terms of servicing the surrounding area, including, for example, all the way into Washington. We want to have it as a full walk-in lab People will have noticed that we started introducing COVID tests. This was purely to get it working, get it up, get it running, make it work. We're actually seeing continued incremental demand for the COVID testing as people walk in. And we will now start to invite them to have the cancer testing as well as we run it through AVERT and we run it through the care oncology side. We're actually extremely pleased about this, and we will quite obviously report on revenue as we move out over the next quarter. Financial results, and I'm now tuned to a review of them for the second quarter of 2021. On the top line, we generated $405,000 in revenue compared with $63,000 in the year-ago quarter. In line with the higher revenues, the cost of goods sold increased to $119,000 compared with $30,000 in Q1 of 2020. We reported a total comprehensive gain for the second quarter of $4.3 million or a gain of $0.05 per diluted share compared with a comprehensive loss of $273,000 or $0.01 per diluted share in the second quarter of 2020. This was a result of an increase of $6.6 million, the fair value of convergent dimension warranty evaluation, offset by an increase of $2 million in general and administrative expenses plus the cost of goods sold. In Q2 2021, total general and administrative expenses increased by $1.4 million year-over-year. This was primarily due to increases in sales commission professional fees. and foreign exchange loss. Finance costs for Q2 2021 were $319,000 compared with $550,000 in the year-ago period. This was primarily due to lower financing activities in the second quarter of 2021 and significantly lower debt levels. As announced last quarter, we presented adjusted EBITDA as a metric to compare our results in an operating basis. we will refer you to the financial statement for these. Turning to the balance sheet, we closed the second quarter with $4.2 million in cash compared with $6.4 million at the end of Q1 of this year. During the quarter, we used $2.4 million from operations and $0.1 million from financing. We received proceeds of $429,000 from warrant exercise. I will add the comment that we have significantly stepped up the marketing spending as it moves out in line with why we raised the money in the first place at the end of 2020. We've also fairly markedly expanded operations. All of this to deal with the demand for the cancer testing. In summary, before we open up the call for questions, I'd like to go over our goals for the second half of the year. For the third quarter, we're focused on scaling up and targeting patients and families within the U.S. care oncology network. We've shown very good progress so far. We intend to continue to build on this, particularly our conversion of interest to active patients. We're expanding our social media marketing with direct-to-consumer campaigns for Revert and Aristotle in the market. The ads are actually performing extremely well The one advantage of being able to work through the quarter with all of this is we've been able to test a variety of different ads. We've focused in on the target demographic. We know what works. We know what doesn't work. And we're extremely pleased with the result, as I mentioned earlier. And most importantly, it is completing the integration of Care Oncology's network with the rest of our business. Looking beyond the third quarter, we're targeting to ensure that we have employer programs with innovators and early adopter employer groups before the end of the year. Part of what comes to us with the care oncology group is all of their contacts as well, and so we are leveraging those right now. Second, we're planning an expanded marketing campaign to target B2B partners including channel partners, self-insured entities, and reinsurers. We've also had a number of very interesting approaches from large groups involved in the cancer space to ask if we would work with them. We are actively exploring those. And third, we will use the multi-channel marketing to drive national B2B and B2C campaigns. The goal is to capitalize on the strong current trends regarding liquid biopsy and telehealth and we will continue to execute on a long-term strategy, which includes generating immediate and near-term revenue through COVID testing, generating immediate and near-term revenue through Aristotle and AVERT, managing a complete cancer patient journey from liquid biopsy testing to telehealth and adjunctive treatment, and leveraging our technology to broaden into the intervention of other chronic diseases over time. In closing, I'd like to underscore that we're now in a remarkable period in medical history. In speaking with oncologists and pathologists, we know that most of them have had very little to do during the worst of the pandemic as patients stayed largely at home. Those same physicians are now seeing a dramatic increase in late-stage cancer patients for whom treatment options are sadly limited. I'm often reminded of the story, which I believe we've told before, but which came to us through the care oncology protocol. In the course of treatment by one of our oncologists, the patient's daughter asked the oncologist, what about me? What about the rest of our families? We share his gene. How do we know we're not about to get cancer? The answer, of course, is screen early intervention through our overt program. We can tell you if you have cancer or whether you're at risk. If you are at risk, we can give you a strategy to reduce that risk. That is our focus, and that is what makes the care oncology acquisition so exciting for us. I look forward to updating you on our continued progress in our next conference call. With that, Richard and I would be pleased to take questions. Operator, please go ahead.

Thank you. The floor is now open for questions. If you do have a question, please press star 1 on your telephone keypad at this time. If you're using a speaker phone, we ask that while posing your question, you pick up your handset to provide the best sound quality. Again, ladies and gentlemen, if you do have a question or comment, please press star 1 on your telephone keypad at this time. Please hold a moment while we poll for questions. And as a reminder, ladies and gentlemen, if you'd like to ask a question or have a comment for our speakers, please press star 1 on your telephone keypad at this time. Again, that's star 1 if you'd like to queue up for a question.

That's okay. I have a series of questions that have come in. by email through this. What I will begin to do is go through this. So one of the questions is that there is revenue from health clinics. And the question is, are they a profitable entity or are they operating at a loss? And perhaps I'll begin with this, and then Richard, if you have any comment, maybe ask if you would add. And so health clinics divided into two groups, the U.K. and the U.S. Both groups are operating essentially at break even in terms of where it is. We will obviously see some incremental costs as we bring them into us. We, for example, adjusted certain things like income just to make it commensurate with what our standards are. But I would also report that we're seeing incremental growth from them, even just on what we call the COC protocol or TREAT program, that we actually expect to offset this. And then obviously as AVERT comes in, AVERT will be fully additive to all of this. So I think as we mentioned, we expect it to be very positive for us. Richard, anything to add?

Yeah, thank you, Jim. I mean, I think the business that we've built, which is just COC at the moment, has an annual growth of around 70%. So obviously, we've been reinvesting in the business. It's still small. But as most of you all know, the potential size of the market is enormous. And one of the reasons we're excited to be part of Stage Zero now is trying to make sure that we can cover as many potential patients as possible in the shortest period of time.

That's good. I have another question here about will the care oncology financials be amalgamated into state zero for Q3 reporting? The answer to that is we expect yes. We've obviously been working through all of this with the auditors as we go through it. I think as I mentioned, we have, as we've gone through the quarter, we've taken the patients, let me step back a little bit to explain it a little better. With all of the work that we've been doing and bearing in mind, as I said, we were expecting to go live with this during the month of June. What we've done prior to that time is we were beginning to build a list of people that were interested in testing and we put them into a waiting line. As we've continued to build out through that, that obviously has grown and it's grown quite considerably. And that is what we begin with immediately. So we can immediately move those people into testing and treatment, take revenue, get it actively done with all of that. I think I mentioned we could have done it piecemeal during this time, but it would have meant that we would have been stepping outside of the care oncology platform that we built. We felt that that would not be beneficial to us. And To explain part of this, that is not only that we need to deal with the patients that have the cancer, but we wanted the patient journey to be fully comprehensive. In addition to that is to remember that if we do it together with care oncology, we get to book the revenue from the physician. We get to book it from the additional testing that's done. We get to book it from the repeat visit, from interactions with the nurse, from all of the pieces that tie in through that. And so if you look at what we've predicated doing the deal on, the deal is predicated on a dollar from stage zero. Let's say it's a vert, not a vert, let's say it's from Aristotle. It is additive in that there is up to another dollar from the care oncology side. So instead of us making a dollar off of testing and just doing a piecemeal, we're making $2. The other key piece with this is people will look at what competitors are doing in the space is that you need to do it through a comprehensive system such as we built. So we felt it was worth waiting that little bit of extra time in order to get everything correct. We haven't lost the patients. The patients are good. We now get to push them through this system, and it works extremely well. So that obviously means that we're looking for good results as we move forward. So I think that is important.

James, we have a question for the webcast as well for you.

Okay.

Just asking if you could speak a bit to the footprint that we have across the U.S. in terms of our reach and our telehealth reach.

Okay, perfect. Sorry, I didn't see that question. So the footprint is two things. The footprint is two things. One, we operate through telehealth, and so the telehealth allows us to operate across all 50 states. So that remains in place. However, we've also had requests for the physical aspect. There are certain groups that want to move in and get physically tested. They want to be able to get consultation in that fashion. And so that has led us to focus on Los Angeles. Notably, we've talked before about doing a lot of work with the Cedars-Sinai group. So the link is we go back to that. It's also Richmond as we build it out. Part of what's driven this, for example, is we're having people drive in for COVID testing from two hours away. And that is because we provide solutions that the other groups do not. If they will drive in for COVID testing, they absolutely will drive in for cancer testing. We've tested that, and that's exactly correct. So we expect to build both of those centers out very strongly. We are in discussion with lab groups across the U.S. too to actually expand that footprint in terms of where. And so we will offer those three options, 450 states, mobile testing via telehealth, an ability to walk into two of our key centers, Los Angeles and Richmond. And then as we expand the lab piece, obviously we would look to have a lab network across the U.S. for those people that prefer to walk to a lab to get their blood drawn rather than have them above the bottom. So all of those pieces operate now. Okay. And I have one further question, which was about the new U.S. listing. And I think everyone has seen the new listing recently. In terms of that, we will go live on OTCQB in the next short while. We have timed this together with Matt coming on board so that we can manage all of the pieces we take it through. If you look at investor conferences, you'll see we've been invited to speak at a good number of investor conferences. And so we begin to expand our footprint out through all of that. Okay. Operator, if there's one last question, we'll take that otherwise we'll call it a day.

One last reminder, ladies and gentlemen, if you'd like to queue up for a question over the phone, you may press star 1 on your telephone keypad at this time.

James, we have one more on the webcast asking whether we have any concerns about our positioning as it relates to GRAIL. Maybe you want to speak to just how we're sort of not exactly in direct competition.

Yeah. That's actually a good question. We're actually supporters of competition. It's a brand new area. It needs considerable muscle into the marketplace to take it out. If you look at the projected size of the market, many, many billions of Obviously, there's more than enough room for multiple players in this. And so we actually welcome that. We think it's really important. One needs to remember what we're all trying to do here, which is that we're trying to turn cancer diagnosis on its head. And so by turning it on its head, it's finding it early, it's intervening early, it's providing all of those outcomes and running through it. You will find as we expand out over time, too, with the Virta, Virta isn't just cancer. It's broader than that. It's inflammatory diseases. And so we will work with those two. We start with cancer, but we expand out. So I think that's there. The other key difference with this and that we often talk to is, one, our technology is proven. You've got to look at what we did with colon sentry as we built it out. 100,000 commercial patients. It's all of that. We've been out there for about 20 years. We know the technology works. We've demonstrated it. We now have Aristotle with high sensitivity and specificity across the 10, 11 cancers we now take out, and we're working to expand those as we talk now. So it drives. When you go to the other technologies, the other technologies... are heavily reliant on circulating tumor cells. Circulating tumor cells have to be present in the sample that you're looking at, so it's a little less defined. In addition to that, there are obviously, with early cancer detection or early cancers, there are fewer tumor cells. The tumors are smaller. There are fewer tumors. If you look at the results that are out in the marketplace, you'll find that their tests tend to be better in later stage cancers than in early for the reasons that I've just talked about. We're the opposite. We're actually better at early stage than we are at late, and we've deliberately biased it in that fashion. So we will get a lot more publications out, a lot more noise out. Our partner, Care Oncology, too, publishing on the work that they've done And so expect to see a lot more robust, a lot, lot more high-profile scientific presence from us. So hopefully that answers it. So I think operator with that, we'll wrap the call up.

Thank you. Ladies and gentlemen, this does conclude today's teleconference. We thank you again for your participation. You may disconnect your lines at this time and have a great day.