Agile Therapeutics, Inc. (AGRX) on Q4 2021 Results - Earnings Call Transcript
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Operator: 00:06 Good afternoon, and welcome to the Agile Therapeutics’ Fourth Quarter and Full-Year 2021 Financial Results Conference Call. After today’s presentation there will be a question-and-answer session. Please note today’s event is being recorded. 00:26 I would now like to turn the conference over to Matt Riley, Head of Investors Relations.
Matt Riley: 00:35 Hello, everyone. And welcome to today’s conference call to discuss our fourth quarter and full-year 2021 financial results and corporate update. Before we start, let me remind you that today’s call will include forward-looking statements based on current expectations, including statements concerning our financial outlook for the future, our outlook for the first quarter of 2022, management’s expectations for our future financial and operational performance, our business strategy, and our assessment of the combined hormonal contraceptive market, among other statements regarding our plans, prospects, and expectations. 01:11 Such statements represent our judgment as of today are not promises or guarantees and may involve risks and uncertainties that may cause actual results to differ from the results discussed in the forward-looking statements. 01:24 Please refer to our filings with the SEC, which are available through the Investor Relations section of our website for information concerning risk factors that may affect the company. We undertake no obligation to update forward-looking statements except as required by law. The information on today’s call is not intended for promotional purposes and not sufficient for prescribing decisions. 01:46 Joining me on today’s call are Al Altomari, Agile Therapeutics’ Chairman and Chief Executive Officer; and Dennis Reilly, Chief Financial Officer. Following our prepared remarks, we will open the call to your questions. 01:57 I will now turn the call over to Dennis.
Dennis Reilly: 02:00 Thank you, Matt. And thank you all for joining us on our call this afternoon. I will review the key areas of our financial performance for fourth quarter and full-year 2021. And then discuss our cash position and plans to finance the company. I will then hand the call over to Al for an update on our business plans for 2022. 02:25 Overall, 2021 was our first full-year of commercialization and we saw steady growth in Twirla across a number of metrics in both demand and revenue as we had, sort to establish Twirla in the market. 02:42 Beginning with revenue, we realized net product sales revenue of $1.5 million in the fourth quarter as compared to $1.3 million in the third quarter of 2021. Our net revenue for the fourth quarter was at the high-end of the range we guided in January and brings us to $4.1 million of revenue for the full-year 2021. 03:09 Our cost of product revenue of Q4 2021 was $5.7 million, which included a $4.5 million inventory obsolescence charge for product not expected to be sold prior to its shelf-life date, which is 12 months prior to expiry. Full-year cost of product revenue was $10.7 million, including $5.9 million of inventory obsolescence reserves. 03:41 Now, we believe we have managed our inventory down to a level that more closely tracks to demand that will continue to closely monitor this area and take the appropriate steps when necessary. 03:54 Our operating expenses were $18.2 million in Q4 2021 versus $17.2 million in the same period a year ago and again more within our guidance of $17.5 million to $19.5 million communicated in January. 04:15 Full-year operating expenses were $64.4 million, compared to $49.5 million in 2020. The overall increase is primarily related to our spend in support of building and promoting our Twirla brand in order to establish it in a marketplace through our direct-to-consumer or DTC marketing and our sales force, which was in-place for the full-year of 2021. 04:45 We remain focused on maintaining our disciplined spending approach and making the right investments to encourage strategic growth, while implementing what we believe to be impactful partnerships and agreements. Al will provide more detail on our 2022 business plan in a moment. 05:08 We anticipate our quarterly spending for the first quarter 2022 to decrease slightly and to be in the range of $16 million to $18 million and maintain spend on products sample batches, and branded markets. This reflects our plan to reduce spending in other parts of our operations in order to maximize and focus on investments in a DTC that Al will describe. 05:38 We close out the fourth quarter 2021 with a net loss of $23.4 million, or $0.20 per share, compared to the net loss of $17.6 million, or $0.20 per share, for the comparable period in 2020. The full-year net loss was $74.9 million or $0.77 per share for 2021, compared to $51.9 million, or $0.61 per share in 2020. 06:17 At December 31, 2021, we had cash, cash equivalents of $19.1 million, as compared to $14.7 million of cash and cash equivalents at the end of the third quarter of 2021. This increase on-hand related to a public offering completed in the fourth quarter, netting $21.1 million, offset by our working capital burn during the quarter. 06:50 Financing update. We continue to explore financing options to support the growth of Twirla. Our plan to finance the company is focused on three parts. One, working down our debt facility with perceptive advisors. Two, regaining compliance with the NASDAQ listing requirements. And three, raising additional capital. 07:21 We currently have no plans to further leverage the company and therefore will not add additional funds under our debt facility. In January of 2022, we $5 million in debt from Perceptive advisors, reducing our debt to $15 million in exchange for relief on certain of our financial covenants. And in the second quarter, we plan to make another payment of $5 million in principle in exchange for further release. 07:58 In March 2022, we closed a $4.85 million registered direct offering of preferred stock with a single healthcare-focused institutional investor. In addition, we anticipate an additional 4.7 million in funding in the coming weeks from the sale of New Jersey net operating losses. As we have previously reported, we were notified by NASDAQ that we are out of compliance with their minimum bid requirement, which requires our stock to trade consistently over $1 and that we have until May 9, 2022 to regain compliance. 08:49 While we might be able to secure an additional six months to regain compliance, we are working to regain compliance by NASDAQ’s original target day. We believe that increasing the price of our common stock at this time would allow us to regain compliance with NASDAQ and better position us for further fundraising, thereby helping to de-risk the company. 09:16 To that purpose, we have called a special meeting of stockholders on April 21, 2022 to seek approval for a reverse stock split. We will require additional capital to achieve our goal of being cash flow positive. We anticipate that as our sales growth continues to gather momentum, our optics on revenue will become clearer and allow us to better define the path and timeline to positive cash flow. 09:50 We will continue to evaluate all options available to us to finance the company, including further equity offerings, and various business development and partnership opportunities to accelerate our path to profitability. 10:06 We believe we ended 2021 with momentum designed Twirla and our focus targeted plan to build on that momentum in 2022, which Al will now describe for you. Al, over to you.
Al Altomari: 10:22 Great. Thank you, Dennis and thank you, Matt. I thank everyone for joining us today and continuing to follow our at Agile. Dennis referenced our belief that in 2021, we began to build momentum for Twirla. I want to spend my time today providing further context and highlighting our plan to build on that progress throughout 2022. 10:44 In the first half of 2021, we laid the foundation for Twirla by deploying our sales force and sampling program to create awareness with healthcare providers. Beginning in the third quarter of 2021, we started to see consistent and meaningful demand growth. From the end of the third quarter to the end of the fourth quarter in 2021, we sold the following: Total cycles dispensed grew 35% to 12,849. Total prescriptions or TRx’s grew 33% to 9,837. New prescriptions or New prescriptions or NRx’s grew 22% to 4,381. Refills grew 47% to 5,456 and total prescribers grew 40% to 4,640 prescribers. 11:43 Another quarter of double-digit growth is encouraging and we believe there are many signs of a healthy growing brand for instance the level of refills. Now, our objective is to continue these trends into 2022 by executing on our business plan. We believe we designed a plan that could allow us to continue to build on this team and the Twirla growth while assuming no changing in the reimbursement or Affordable Care Act agreement. 12:12 We believe that any positive changes in reimbursement and ACA could have potential upside on the growing for Twirla in 2022. This plan has three primary components that we think will contribute to reaching our objectives. 12:29 First, our partnership with Afaxys. In January 2022, we launched our co-promotion partnership with Afaxys, through their group purchasing organization, which primarily provides services to the non-retail channel, and Afaxys has the potential to access to over 25,000 accounts, including colleges and university student health centers, and Planned Parenthoods. 12:57 We have previously stated that access to Planned Parenthoods was a priority for Agile and Twirla. And we believe the partnership with Afaxys gets us there in an efficient targeted way. The growth graph, we just showed, and have shown to date, reflects through traditional retail channel only. 13:18 Generally, retail sales are units dispensed to the end user at pharmacy or through mail order telemedicine and non-retail sales are units sold or dispensed to public health clinics or institutions. In the second quarter of 2021, a single state purchased 2,200 non-retail units, which showed us the potential impact that this non-retail channel can have on our business. We believe that Afaxys and its sales force can deliver on the non-retail growth and we expect to see contributions from this channel ramp throughout 2022. 14:02 The second component of our business plan is to focus on California, the largest U.S. market for contraceptives, through preferred positioning on Medi-Cal formulary. On last quarter's call, we announced that Medi-Cal, the largest Medicaid program in the United States added Twirla to the preferred drug list. 14:28 As of October 1, 2021 the preferred drug placements for Medi-Call applied to those beneficiaries who received their pharmacy benefits through the fee for service plans and related programs with the remainder of the beneficiaries gaining access as of January 1, 2022. This is significant for Agile and Twirla because Medi-Cal provides healthcare to approximately 15 million beneficiaries and one-third of the existing patch market comes from Medicaid. 14:54 Because Twirla is now active on the Medi-Cal formulary, driving Twirla awareness and adoption in California is a priority, which leads to the third component of our business plan. We are excited to announce a brand new Twirla direct-to-consumer commercial that will air on Connected TV, also known as CTV and is set to launch in early April. 15:19 The tag line for this commercial is patch and play and the objective is as spot as simple. We want patients to ask for doctors about Twirla. For those of you who are unfamiliar with CTV, it refers the internet connected video streaming across Smart TVs, desktops, mobile, and tablet, which allows us to buy exposure to a specific target viewers wherever they are watching streaming content, rather than buying space or particularly TV shows or networks. 15:52 We are deploying the commercial with a highly targeted efficient focus on women in our target age demographic, 18 and 24 in the big five states of California, Texas, Florida, Illinois, and New York. These states have large markets for contraception and potentially strong commercial coverage for Twirla. 16:17 By targeting these five states, we believe we're able to reach between 41% and 45% of our key customer base in this country or approximately 5.7 million women ages 18 to 24. For those of you interested in viewing up the ad to more and 18 to 24 year old woman it will be made available on Twirla’s YouTube channel and in the future on Agiletherapeutics.com. 16:47 We've been adamant that traditional cable TCV is an inefficient mass advertising approach that does not land directly on our target, Twirla’s audience. Moreover, we believe cable TV is an expensive strategy and is currently not a responsible way to utilize our valuable consumer marketing dollars. We think CTV is a highly targeted and cost effective way for us to reach nearly half of our target market. 17:18 CTV is the next phase of our DTC approach to increase Twirla awareness and encourage Twirla adoption. This complements the Digital RTC programs we announced on the third quarter call 2021 and it's worth noting we are seeing territories where there are no Twirla sales representatives producing prescriptions. 17:43 We believe this signals that current DTC efforts are gaining traction and producing results. This is the plan we have in place for 2022 and our focus is on building upon the momentum we established throughout 2021. The Afaxys partnership and the new Medi-Cal program development have effectively come online in January of 2022, and we expect that the contribution to our growth to ramp well into 2022. 18:19 The Twirla CTV commercial will air early in April 2022 and we believe will contribute to the demand growth we're seeing. Even without these components being fully deployed in the first quarter, we saw the brand momentum continue as you will see on the graph here that shows the four-week rolling average for the fourth quarter 2021 and the first quarter of 2022. This is why we have confidence that as our key initiatives for 2022 begin to contribute for Twirla results, our business plan can be successful. 18:58 Before we get into Q&A, I want to touch on to federal activities surrounding the enforcement of the Affordable Care Act or the ACA. We believe the high interest level regarding contraceptive access and the implementation of the ACA requirements across advocacy groups, members of Congress and the Senate, Congressional and Senate committee chairs is an effort to support our basic sound policy. Women and their providers are the best determines of contraceptive care. 19:32 As a result of that interest, in January 2022, the U.S. Departments of Labor, Health and Human Services and Treasury, updated guidelines reinforcing the requirement for most commercial insurers and their PBMs to cover all FDA-approved contraceptives at no cost, if deemed medically necessary by their provider. 19:59 They specifically indicated that the plans may not require patients to try and fail multiple options or require patients to try methods other than the one recommended. In addition, Health Resources Services or also known as HRSA updated their women’s preventative service guidelines for plan years beginning in 2023 to include coverage of all FDA-approved, granted or cleared contraceptives be made available as part of contraceptive care. 20:35 These updated guidelines are potentially significant. We will continue to engage the plans as they begin to evaluate their practices to comply with the ACA requirements. We will continue to monitor developments in this area very closely. We think we have a well-designed plan for 2022 and if we continue to execute consistently we can achieve meaningful progress in building our business in 2022. 21:06 We like to give a chance for our covering analysts take this opportunity to ask if any questions. Operator, you may now open the line for Q&A.
Operator: 21:15 Your first question comes from the line of Leland Gershell.
Leland Gershell: 21:32 Hi, congratulations on the progress. Thanks for taking my question. Couple of questions. First, just as you expand the DTC campaign, just wanted to ask if you have any metrics or kind of feedback on the effectiveness on the different aspects if you have your DTC initiatives? And also with respect to the enforcement under the ACA, just want to ask if you've seen any tangible signs of either enforcement or threat of enforcement how that may have positively impacted Twirla at this point? Thank you.
Al Altomari: 22:09 Thank. Your first questioned that metrics or signs of DTC. So, we're pretty excited about what we're seeing so far. I mentioned in my talk that clearly DTC works better when we have a sales representative in front of a doctor, while we're deploying DTC. It's clear that that's the best outcome. But we have kind of – kind of an experiment we look at where we said, we're – don’t we have sales representatives, we have zip codes and in some case states, where we don't have sales representatives that we said all deploy DTC and see if we can move the needle, and we can. 22:51 So, we know DTC is strong enough to work on its own. We know it's better when it works in parallel with our sales force So, that's an important metric for us so it gave us confidence to say, okay, let's take it to the next level because our DTC has generally been – and you also are ahead of marketing, I’m not sure I call it print advertising, but it's print, it's flat media. It’s for the most part digital, you know print, and it works really hard, but we think we could take it to the next level and that's why we're excited about the CTV. It's a video. This video, we don't want to call it a commercial, but it's a video. 23:29 Hopefully you will get not only a good laugh at it, because it shows women interacting with other women because we know that the number one and if you will advocate for a brand is a women's reference. That's why we do the influencer programs we do. So, we want to take advantage of that dynamic. So, then the other metric we look at to complete the entity is, we look at when we run media that we light up our website, so we get traffic and we do. 24:00 So, we see a pretty quick response. So, we know it works. We know it can work harder and then what we want to do is be smart with as I mentioned in the talks because we know we’re throwing a DTC in the some states where we don't have great coverage. We don't have enough of the sales footprints. So, we said why, why do we deploy our spending, let’s go heavier in areas that the pumps already primed if you will. 24:24 So with the sales force footprint and our reimbursement coverage and obviously high density. So, that's why we picked the big five. So, that's what we looked at kind of gets to next level. The second question you asked is at the ACA. 24:41 I wish I could tell you that we're seeing a lot of changes in behavior. We're seeing a lot of interest, a lot of activity. We've gotten inbound calls that our coverage and so I think, I think the issue has come to at least at the forefront of the insurance company of the PBM’s mind, but now it's got a get to the next level that we've got to change behavior. So, we're starting to see that work a little bit better. So, we get a better conversion of our scripts. I don't think it's a coincidence that we had our best month ever and put my neck on the line a little bit. We saw the highest growth we've seen in this brand in March and we're not quite over yet. 25:24 So, we see – so we think the market is evolving Leland. Now probably not as I want. So, we said let’s just develop a business plan that says status quo. We've got to play the cards with , and that's what we're doing, and we're just – I hope if I could say to you at the end of the first quarter that we prepped three months of quarters in a row where we've grown our top units well over 30% to keep compounding 30% on 30% on 30% on the cycles going out the back door, you know, it’s just – I think a great testimony to the brand to the people in our company. 25:59 So, we're optimistic and we just see it as an upside Leland. We think, basically guidelines for HRSA, you know, we think that what’s going on in DC and the awareness, we still think our better days are ahead of us, but doesn't mean it’s going down right now, we're right now. And we've officially dropped the flag, so we've got momentum on this brand. 26:19 We don't see growth. We see growth momentum now. So, we're pleased. We want to do more and I think these initiatives we did hopefully, accelerate that, but right now we're pleased. And so, in the ACA side, the scripts goes through a little bit easier. We're seeing some upside. We think there's less friction if you will in the marketplace, but not enough to shed. So, we think it's a sort of evolving story, but we're ready. 26:46 We’ll keep working hard and with the cards were down, you know in the meantime, we see it as a big upside for later in 2022 and then hopefully in the 2023. So, you'd like the 35% growth, let back it cleaned up and we will really rock. 27:01 Sorry, you asked two really important questions.
Leland Gershell: 27:05 No, not at all. Very helpful. Thanks so much, Al.
Operator: 27:11 Your next question comes from the line of Oren Livnat with H.C. Wainwright.
Oren Livnat: 27:18 Hi, guys. Thanks for taking the questions and a nice growth curve you got going. I hope you can keep it up. Regarding these, I guess, key focus areas for 2022 in terms of the most exciting growth opportunities you've called out being Medi-Cal and the Afaxys, I was just hoping, if possible you can just help me better understand, I guess, sort of the size of those potentially, I think you said that one-third of all patches go through Medicaid, I guess that's overall Medicaid, are you able to give us a sense of what sort of CHC volume, prescription volume patch maybe specific volume goes through Medi-Cal specifically? And on the Afaxys’ front, I guess I don't really have a great, I mean, I know that's not –doesn't show up on IQVIA, right? That's a volume. I can't track. Are you able to give us any sense of, sort of how big the volume of their overall contraceptive portfolio business is, just again, what kind of scale potential exists within those channels? And I have a follow-up or two.
Al Altomari: 28:22 Super questions Oren. Probably om Medi-Cal first. The California is roughly in-line with information. So, in general, that a third of the current volume in this country runs through to Medicaid books. And we see that in California. So, I don't have exact numbers in front of me, but it's a huge potential market for us running through that Medicaid book. It’s meaningful. It can move the national needle itself. 28:52 What's exciting from me is that generally you put reps in front of doctors and you say well take multiple times the kind of, get doctors the right product or like the first week of January, we saw scripts in – not many, but we saw California scripts. And is growing at a pretty nice clip. So, I think the market shares sometimes are – our market share in Medi-Cal in California might be at or beyond the national market share we have. 29:21 So, we're already doing as well in Medi-Cal, I'm sorry, after two months that we took as the latter part of 2021, that shows you how excited the doctors are in California. So, I wish I had at the top of hand thinking of the size of the market, but it passes our big piece of business there. It’s just a significant amount of volume in California. It's meaningful to move the national needle. 29:45 So, the other thing with Afaxys, they have their own brands, so they have a lot of they sell. So, they have their own products. They obviously don't have a patch and they don't have other forms of contraception . So, they kind of work with partners to complete their offering, if you will. But – and you're right, their volume in they’ve been with the Planned Parenthood volumes don't run through IQVIA or Symphony, because you get the data for these, generally everything runs through there, but these don't. They don't report to a IQVIA and a lot of student health centers don't either. 30:23 So, I mean, nationally, we think it's hundreds of thousands of potential cycles up for grabs in patch volume, hundreds of thousands. So, we'd like to take a piece of that pie, right? So, if we take a reasonable slice of that pie based on what I just reported, you know like in the quarter, we are proud with 12,000 cycles we get in the fourth quarter. You know, that's less than 4% or 5% of Afaxys’ patch volume. So, imagine I could get a decent slice of your Afaxys business, it’s meaningful. 30:59 So, there's hundreds of thousands of patch volumes that's up for grab in Afaxys’ current book. We think we want to get a piece for it. So, it could take us some time. These are contracts. It’s not like you walk into a doctor’s office and they write a script for you. This takes us time to get under contract and they have to purchase through the GPO. 31:19 So, we're starting to see a small mountain not very meaningful to show up in the first couple of weeks they have been business. We think that this is going to build over time and we think probably in the next couple quarters, more than likely the second and third it will be more meaningful that we might report it separately to you, but for right now, we're just for that. So, I think Afaxys is going to contribute more, I think to the topline of Agile I'd say in the second half of the year. 31:48 I think Medi-Cal will start paying, getting some scripts, it’s already getting now and we'd expect that already contributing. But I think that's why our March data is that's why, thank you for the comment about the curve. We like March a lot. We like to think that and it sees that March, it really looks good because we're having a really great March. 32:09 We'd like to see that continue obviously, but thank you for noticing it. So, it's important to us. And I think we want to keep going.
Oren Livnat: 32:17 Alright. And if I may, just, you talk about targeting 18 to 24 year old’s and you also mentioned taking patch share, and so I'm not sure these are the same pools of patients. I just want to understand you're targeting and how you’ve, sort of chosen, obviously the oral contraceptive market is the vast majority of the overall volume and switches from there or new starts represents a bigger potential pie overall for your long-term. So, is that why you're targeting younger patients because their earlier on the journey or you have some other profile that you're targeting?
Al Altomari: 32:52 No, I think you answered the question. I mean, I think in general, I think we mentioned, we mentioned before that about 50% of our business comes from a who probably more than likely is sort of first step on the journey or maybe she's been on pill before. Roughly 75% to 80% of our business comes either from a niche start or somebody has been on pills. 33:12 So, we think she’s relatively early in her journey as we probably all know is that women can start before 18 and often times do, but we think that the 18 to 24 kind of is that sweet spot where more than likely she’s either tried a pile or more than likely hasn’t been that happy with a pile and is looking for something different and isn’t ready to sign up for or a ring or potentially . 33:35 So, we think they're very responsive. And at that point, they're making a lot of decisions for themselves about what brands they go on. So, we think it's really smart buy media, but we also think in lines up with what we're seeing and you know using our product right now, but then you're right. But there's be made, we should go a little older and maybe a little younger, but we've got a walk before we run a little bit. We'll put our media where we think we get the best bang for the buck.
Oren Livnat: 34:09 Okay. And if I may I appreciate you're not hiding from the liquidity situation, you know, you’re not alone. Obviously tough launching a single drug as a small company and you're not the only one even in the women's health business that is facing those challenges. So, just strategically, given there are several companies in the space and similar situations, how much thought do you lend to strategic alternatives whether it's buying and selling, in some ways to get some leverage in this space so that were one plus one equals three?
Al Altomari: 34:46 Yeah, I mean, it's probably, sort of running our business. It's the second thought that it's my mind. I think all of us that have a one product company with the point of sales force should look for ways to make that more efficient. 35:00 We are really open to collaborating with other women's healthcare companies. We're open to finding another product for our bag, if we can help somebody else. I think, we all should be looking for ways to leverage our infrastructure costs. So, I think it's a really important effort that we take really serious. So, we're in a lot of conversations. We try real hard. Obviously, we don't have anything to show you, but I think it is top of mind for me, I do. I think if there's two things that we can get another product in our bag that makes our math clearly a lot better. 35:38 But also, I leave a lot of open gaps on the map. There's only so many sales reps that we could afford. We put them where we think the are bought, but it's somebody wants to put our product in their bag and to do it more efficiently, that we're open for that too. So, basically your comments got the capital markets, we all should be thinking of that Oren. So, it's certainly top of mind. 36:00 Unfortunately, it's a relatively small space it is not a ton of opportunities, but we all – so just we don't have 50 choices, if you will. So, we've got a work harder at it. So, we're in good conversations, but for right now, that's all I can tell you, that I'm just being straight.
Oren Livnat: 36:18 All right. Well, thanks for culminating all the questions.
Operator: 36:24 And I'd like to turn the call over to Al Altomari for any closing remarks.
Al Altomari: 36:29 No. Thank you, operator, and thank you Matt and Dennis for help. Dennis described that we're trying to, you know and Oren just touched on it, look at our, you know managing our quarterly operating expenses and working that we're getting compliance with effect. And we have to finance the company. So, we're not, we want to lay out our plans to benefit and let you know exactly what’s in our minds. 36:51 We think we're using our marketing and spend in a very wise way focusing on large markets with potential good coverage for Twirla, strong commercial coverage. In summary, we believe this brand is demonstrating steady growth and steady momentum. So, it's beyond – it's now predictable. So, it's not a surprise that we had in one or two good quarters and we now throwing it strong together. Three quarters, hopefully has gone in the first quarter of strong growth. 37:19 And we think our business plan that we're working with is designed to help Twirla even grow more in 2022. But in the meantime, you can keep an eye out for the CTV ad you mentioned. We’ll put out an announcement shortly about it. And also, I want to let you know that the company has gone to a very major conference at The American College of Obstetricians and Gynecologists or called ACOG. It's in May. 37:46 So, we're going to have a strong footprint there both on the commercial side. And also on the scientific side. So, more to come there. So, anybody in – would like to know more about that, we'll be putting out some information about that. I think the other thing I want to mentioned about a ACOG, but I think it's important for you to know is that sometimes you just get lucky. 38:03 So, ACOG this year in our key market. ACOG is in California and San Diego. So, we're thrilled to put our major presence out in our foot forward in the California market in such a critical time. So, thank you for joining us. And we look forward to updating you as we go through the 2022, and thanks for following our story, and thanks for your interest in the company. So, we appreciate it.
Operator: 38:30 Ladies and gentlemen, this concludes today's conference call. We thank for your participation. You may now disconnect.
