Interleukin Genetics, Inc. (OTCQB:ILIU) Q4 2013 Results Earnings Conference Call March 20, 2014 4:30 PM ET
Ken Kornman - Chief Executive Officer
Eliot Lurier - Chief Financial Officer
Brian Marckx - Zacks Investment Research
Good day ladies and gentlemen and thank you for standing by, and welcome to the Interleukin Genetics, 2013 fourth quarter and year end earnings results conference call. At this time all participants are in a listen-only mode. We will be facilitating a question-and-answer session at the end of today's conference.
With us today from Interleukin Genetics are Ken Kornman, CEO and Eliot Lurier, CFO. Dr. Kornman will provide the corporate update and Mr. Lurier will review financial results for the quarter and year ended December 31, 2013 followed by other financial highlights. Dr. Kornman will provide closing remarks and will then open the call for questions.
Before we begin the call, I would like to remind you that today's discussions will contain forward-looking statements that involve and uncertainties. These risks and uncertainties are outlined in Interleukin's filings with the Securities and Exchange Commission including Annual Report on Form 10-K filed earlier today. As such, actual results may differ materially from what is discussed on today's call.
I would now like to turn the call over to Dr. Kornman, CEO of Interleukin Genetics. Sir, the floor is yours.
Thank you. Good afternoon everyone and thank you all for joining the call today. Interleukin Genetics achieved a number of important milestones in 2013, including the launch of PerioPredict, a transformitive genetic test that is designed to predict a dental patient’s risk for severe and progressive periodontal disease and to thereby their need for Preventive Dental [claims] [ph]. I’m very proud of our progress thus far and I’m enthusiastic about the opportunities we have before us this coming year.
For many years, as you know medical practice is focused on providing care in a personalized manner to an individual patient, based on that patients specific disease parameters and situation. Today’s personalized medicine uses an individual’s unique molecular characteristics and often uses genetic distinctions to allow physicians and dentists to diagnose more accurately, select treatments that increase the chances of a successful outcome and reduce possible adverse reactions.
The concept of personalized medicine is not new, but our current tools, especially in Genomics, now allow us to identify and stratify patients with greater precision. I’m sure you’re well aware of various dramatic examples of how personalized medicine is being used to better target drug use and prevent disease, primarily in oncology. Although thousands of patients have benefited from this information so far, much of the activity is still limited to academic health and research centers.
In fact, in January of this year, 2014, I had the pleasure of presenting at the Personalized Medicine World Conference in Silicon Valley and multiple speakers emphasized the importance of pushing forward for the next chapter of personalized medicine, the chapter that involves three components: number one, the broader use of genetic testing beyond oncology; two, the increased use of genetic testing for prevention, quite frankly the area of greatest value in reducing both disease complications and costs; and three, greater reimbursement by payers.
With PerioPredict we believe we are bringing the promise of personalized medicine closer to an everyday reality. I would like to update you on what has been accomplished to-date with the ongoing commercialization rollout and I can provide some perspectives on what to expect going forward.
Nearly one in three Americans carry this genetic variation that puts them at increased risk for severe periodontal disease. With the introduction of the PerioPredict genetic test, it’s a major advancement for both Interleukin and personalized medicine as it represents the first broad based use of genetic test to guide improved prevention of this highly prevalent disease.
On January 1, 2014, our partner Renaissance Health Services Corporation introduced new dental insurance policies called Right-Sized Dental, which include reimbursement for our PerioPredict test and use of the test results to provide risk based Preventive Dental Care. This introduction was the first phase of what has the potential to be the broadest use yet of genetic information to prevent a common chronic disease.
Phase I of the PerioPredict launch was designed to validate all of our information and processing systems, and make sure that we can properly train the dental offices that service Right-Sized patients and appropriately inform the national and local dental organizations.
In January approximately 600 dentist with patients covered by the Right-Sized policies receive test kits, including sample kits to try out on their staff to better understand the process.
Our Dental Hygiene Educators are currently in the filed working with dental offices to make sure they know how to use the test. As part of the education process, dental offices have the options to have their questions addressed by our Dental Hygiene Educators, our own internal customer service staff, Delta Dental’s customer service staff or Interleukin Genetics certified genetic councilor.
I’m very pleased to report that all the first Phase in going well and that all systems are operating as planned. We’ve begun receiving tests for patients covered by the Right-Sized policies. We’ve issued test reports to the dentists who submitted patient tests and we’ve been reimbursed for the test we’ve received.
Going forward we expect that Renaissance will begin offering Right-Sized policies as an options to their current customers who are (inaudible) the roll in July 2014 and January 2015. We refer to these timeframes as the second and third phases of the PerioPredict program respectively. Renaissance is currently educating corporate benefits managers and insurance brokers about the new plans for the July 2014 policy renewal time.
Beyond Renaissance we’ve also been actively engaged in discussions with other payers in the dental insurance industry. To more broadly provide opportunities to potentially introduce their own risk based Preventive Dental policies at some point in the future.
The American Dental Association and the Michigan Dental Association have provided information on the Right-Sized dental plans to their members through their websites, newsletters and journals. We are actively engaged in ongoing communications with both the ADA and MDA to address questions that arise and to assist these organizations and disseminating accurate information regarding our test and the plans.
As the various phases of the launch rollout unfold, we expect to able to provide updates that will allow you to assist our business progress. We hope to be able to include information such as the number of adults covered by risk based Dental Preventive Care policies and our company revenue, as well as perspectives on parameters that influence patient dental business throughout the year. As we’ve already indicated previously, reimbursement per task continues to be within the range of $125 to $200 per test processed.
As you know, from the perspective if the employers the Affordable Care Act has introduced some uncertainty to the healthcare market place. At this time its unclear how this may impact Renaissance’s success in selling Right-Sized policies that represent the change to the employer and as has been the case in the past, some dental offices will be early adopters of testing, while others may adopt more slowly.
In support to the PerioPredict commercialization rollout, we continue to educate the broader medical and dental communities, both in the U.S. and abroad about the compelling evidence for personalized preventive care in dentistry.
During 2013 we presented our finding at numerous scientific meetings and events including at the National Institutes of Health, the American Dental Association, Harvard University School of Dentistry, the American College, the Prosthodontists and the International Congress of the Italian Society of Periodontology amongst several others.
We look forward to interacting with Dental Organizations in both the state and national levels. To help communicate how dentistry is playing the leadership role in preventive medicine.
One other item I’d like to highlight. In our Inherent Health, our heart health genetic test received some positive attention and feedback recently. About three weeks ago a group from University of California, San Diego and the MAYO clinic published online first an article in the Journal of the American Collage of Cardiology showing that the our priority test for cardiovascular disease, together with elevated bad blood lipids there’s a strong predictor of future cardiovascular diseases events or deaths due to heart disease.
The journal viewed the findings as important enough to write an independent commentary stating the following: “few studies have provided clarity around the interactions between different genes and environmental exposures and the resultant effects on cardiovascular being at times.
In this article study investigators linked for the first time the potential interactions between genetic factors influencing inflammation and exposure to modify lipid and how this may influence the development, coronary artery disease and cardiovascular events”.
With that I’d like to now turn the call over to Eliot for an overview of the financial results and some financial highlights. Eliot.
Thank you Ken and good afternoon everyone. By now we hope you've seen our earnings press release issued this afternoon, as well as our Annual Report on Form 10-K filed with the SEC before today's call. Each of these results are available on the Investors section of our website at ilgenetics.com.
First I’ll provide an overview of the financial results for the quarter ended December 31, 2013. Revenues for the fourth quarter was $671,000, compared to $339,000 for the same period in 2012. The increase is primarily attributable to increased royalty income and increased genetic testing revenue as a result of sales through the Amway Global sales channel.
Research and development expenses for the fourth quarter of 2013 were $212,000, compared to $302,000 in the same period in 2012. The decrease is primarily attributable to decreased compensation, consulting and clinical study costs.
Selling, general and administrative expenses for the fourth quarter were $2 million, compared to $793,000 for the same period in 2012. The increase was primarily due to increased expenses related to marketing activities for PerioPredict, increased consulting and compensation expenses, partially offset by lower sales commissions paid to Amway Global as part of our Merchant Channel and Partner Store Agreement. As of December 31, 2013 we had cash and cash equivalents of $7.5 million, no debt and no corresponding interest payments.
And now turning to the full year 2013 financial results; total revenues for the full year ended December 31, 2013 was $2.4 million, compared to $2.2 million for the full year ended December 31, 2012. The increase is primarily attributable to increased royalty income and a slight increase in genetic test processing revenue, derived from sales of the company’s Inherent Health brand of genetic tests through the Amway Global sales channel.
Deferred revenue at December 31, 2013 was $3.8 million compared to $1.6 million in the prior year, representing genetic tests sold and not yet processed. The increased in differed revenue is a result of Amway paying in advance for the 2014 weight loss promotional program.
Our revenue is recognized when a test is processed in our laboratory and a report is issued to the customer. The customers have historically paid in advance for these processing services when the kit is purchased. This prepayment has resided on our balance sheet as deferred revenue until the processing occurs and is then recognized as revenue. Accounting rules have been developed which allows the recognition of this deferred revenue when there is a remote chance that the test will be returned.
We launched the Inherent Health brand in 2009 and now feel we have adequate history to view the return rate of our genetic test. We completed an analysis of every test that was processed from 2009 through December 31, 2013, looking at how long on average a test takes to come back for processing.
The majority of the tests come back for processing within the first two years. The analysis has led us to recognize this revenue approximately 213,000 of deferred revenue related to 2009 and 2010 in the quarter and year ended December 31, 2013. We will continue to recognize this breakage revenue going forward on a quarterly basis. We will also analyze redemption patterns to make sure our assumptions hold true.
Cost of revenue for the year ended December 31, 2013 was $1.6 million or 73.1% of revenue, compared to $1.3 million or 59.4% of revenue for the year ended December 31, 2012. The increase in the cost of revenue as a percentage of revenue is primarily attributable to increased laboratory costs associated with processing genetic tests; processed at a lower selling price as compared to the year-ended December 31, 2012. Deferred cost of revenue related to breakage revenue was $10,500 for the year ended December 31, 2013 and no breakage revenue or costs were recognized in 2012.
Research and development expenses for 2013 were $722,000, compared to $1.3 million for 2012. The decrease is primarily attributable to decreased compensation, consulting and clinical study costs.
In the first quarter of 2013 our Chief Scientific Officer had fully transitioned to his role as Chief Executive Officer and accordingly related compensation costs were classified as part of selling, general and administrative expenses in the 2013 period, where such costs have previously been classified as research and development expenses.
Selling, general and administrative expenses were $6.6 million for 2013 compared to $4.2 million for 2012. The increase is primarily attributable to increased expenses related to marketing activities for our PerioPredict periodontal test, increased consulting and compensation expenses, partially offset by lower sales commissions paid to Amway Global as part of our Merchant Network and Channel Partner Agreement.
Interest expense for 2013 was $472,000 compared to $454,000 for 2012. The increase in interest expense in 2013 is attributable to $298,000 of non-cash interest associated with the fare value of the warrant liability, resulting from our May 2013 financing, partially offset by lower interest expense, due to the conversion of all outstanding convertible debt to common stock on May 17, 2013.
I’d now like to provide an overview with various financial initiatives that occurred in 2013 and may occur in 2014.
In May 2013 we successfully closed the $12 million private placement of our common stock in warrants. This financing was led by Bay City Capital, a leading Life Science investment firm, with participation from the New Enterprise Associates and Merlin Nexus.
We sold common stock and warrants at approximately $0.27 per share. Immediately prior to the closing of this private placement, all preferred stock held by Praxis and Delta Dental, as well as the debt owed to Praxis was converted to common stock. Each investor in the financing also has the right prior to June 30, 2014 to purchase its pro rata share of up to an aggregate of $5 million worth of additional shares and warrants on the same terms as the May financing.
Discussions regarding the additional investment of $5 million are currently ongoing. As investors choose not to invest the additional funds, we estimate that our current anticipated financial resources are adequate to maintain current employment operations through early 2015. With the additional $5 million investment, we expect our cash resources to last into the fourth quarter of ’15.
At our annual shareholder meeting held on August 9, 2013 shareholders approved an amendment to our charter to effect a reverse stock split and a ratio in the range of 1:5 to 1:20 and any time prior or the earlier of August 1st, 2014 and the 2014 Annual Meeting of Stockholders with the exact ratio to be set within this range by our Board of Directors in its sole discretion.
No ratio has been set by our Board of Directors. The purpose of such a reverse split would to be to potential meet the initial listing requirements for a national exchange. While we continue to evaluate the opportunity to list our common stock on a national exchange and view this initiative at a high priority, we do not currently expect an up listing to occur in 2014. If necessary, we may again ask our shareholders to approve a range for a reverse stock split at a future Annual meeting by a special vote.
In the later half of 2013 we implemented a new investor relations initiative with the goal of driving interest and increasing awareness about our high value genetic testing programs. Ken and I are actively out meeting and talking with high quality investment funds and we have also been a regular contract with a number of self-side research analyst that specialize in both molecular diagnostics in the broader life sciences.
We believe we have an exciting story to tell and so far the feedback from these new relationships has been very positive.
We realize an important part of gaining interest from these parties, as well as from you our shareholders will be to develop appropriate metrics. For those following our story, can track and measure our performance. We view the development of these metrics as a high priority and we are looking at comparable, public available metrics and others that would be specific to Interleukin, such as covered insurance lives, number of patient dental visits, and other high level drivers.
It is still early in the multiphase rollout of PerioPredict, but as we began to generate revenue from PerioPredict t, but as we begin to generate revenue from PerioPredict, our goal is to provide metrics that assets in understanding our chest revenues throughout.
Thank you Eliot. Let me just make a few comments and then we’ll open for questions. As Neil Roy (ph) who had articulated several years ago, its clear that the future of healthcare is personalization, prediction and prevention and at Interleukin Genetics we have long been dedicated to the promise of personalized medicine and its potential to increasingly shift healthcare and repair to prevention. To select more optimal preventive and therapeutic approaches, to improve quality of life and to help control the ever increasing cost of healthcare.
We believe that PerioPredict, along with its accompanying right sized policies has the potential to be a successful example of the benefits to personalized medicine. Clearly this is an exciting time for Interleukin and we look forward to communicating our progress throughout the year.
Thank you very much for participating on this call. We now are happy to take questions and Eliot and I will be happy to address them as we can.
Sure thing, doctor. (Operator Instructions) Presenters, it looks like our first phone question will come from the line of Peter Wilson (ph) who is a Private Investor. Please go ahead. Your line is open.
Ken and Eli, how are you?
Good, thank you. How are you?
I’m very encouraged by the comments that you made throughout the presentation today, but I do have some questions. The first one was, I guessed it was originally the commitment to increase shareholder communication during the last conference call, and unless I missed something, I did not see anything during this whole quarter. Am I correct or was there a reason why there was such silence throughout the quarter.
Unfortunately, I think you are correct Peter and there’s no reason why. We have been, and I’ll give you, I guess my apologies and I assume some responsibility for this, but quite frankly our focus in these last several months has been with a small team doing two primary things. One is getting the launch going and we’ve been aggressively focused on that.
The second as Eliot mentioned, we are out communicating broadly to a variety of people who do not know the story at all. So I do appreciate the point. I do think that we have not done as well as or we promised that we would do it the last call and we’ll certainly try to do better and keep trying to do better on this.
Part of the challenge for us, during these particular phases, this first phase has been a very good example. Is there is very little to communicate while we’re wrapped up in the nuts and bolts of this and you know we’ll always work harder at this and I give you my commitment to that, but there will be periods where we’re kind of at the ground level, making things happen and there’s just nothing I can say about that, except we are out in the field doing things and we are gluing the information that works together.
I appreciate and I understand that there’s a million things to do in 24 hrs, but I’m very encouraged by the direction that we’re taking this company right now. So take it as a positive comment. I just think that we’re all on, we’re all excited about the opportunity.
Can you just go on to – can you give me a little bit of a overview in terms of the number of Dental Hygiene educators or as a pool how many people are out there knocking on doors and the size of this marketing team that you have in general.
We can’t give specifics at this time, but what I can tell you is this, we have during this first phase, I primarily put the systems together in terms of making sure that this Hygiene Educator approach works and it has two different dimensions to it that impact both the number of hygiene educators and the actual operations and the first phase has some real challenges in terms of one of these dimensions.
So the Hygiene Educator system has people on the ground, who actually call on offices directly and the nice thing is they are not selling anything. They really are there to educate the offices about how to use the test and to be a resource if they have questions that come down the line in the future. So it’s important not to put it in the bucket of the sales team or detailing team, so those people are on the ground.
Then there’s another group that are working through the phones and the reason for that distinction is that the people on the ground depend upon geographic density. So for us to put a Hygiene Educator in a specific location, they of course need to be able to call on offices, to have some density of patients covered by the new plans, and we’ve done that. But as you might imagine, in this first phase which is small, there are many offices that have small numbers of patients cover.
But as we indicated we have over 600 offices that currently have patients covered by the new policy. Most of those are in the state of Michigan; Michigan’s a big state and so we have for the low density offices we tend to use more phone communication and we can expand that broadly as we need to.
What we do predict, that every new geographic area that policies are introduced to, we will always have some mix of low density, medium density and high density offices and fortunately this system is scalable by really bringing on Hygiene Educators as stated by the density and the need on the ground.
So were these individuals who are focused on this Interleukin employees or is this outsourced?
So these are contract staff who we’ve recruited, who have the experience in commercial communication, they are dental hygienist, who have experience in communicating with dental offices. They know the system, they know how they work. They had worked for other companies before in various roles and they are commercially oriented. We train them specifically, but they are on a contract basis and so we can ramp up and ramp down specific geographic areas as needed.
And are they solely focused on your cause?
Yes, some of them are not full time, but they are from a commercial standpoint solely focused on us.
And then just, I don’t know whether this is for you or Eliot on the reverse split and just enhancing the shareholder value. What was the thought process for not moving forward with the reverse split in 2014?
Yes Eliot, you want to take that?
Yes, I think for the most part it’s not just the initial listing standards, it’s the continued listing standards that you have to work towards also and that’s certainly driven by the equity section of our balance sheet.
So I think you have to find the right time where you’re creating solid revenue, you’ve got fundraising activities plus the split, so that we can maintain that listing and stay there without and issues. So we’re thinking about it all the time and moving towards it.
Yes, one other query. A couple of other questions on the financials. The gross margin dip, if I got the calculation right, because I feel like its now 42% to 37%. Is that a trend or is that an aberration?
Year-over-year, so primarily attributable to the Amway promotional program, which should be processed test at a lower selling price than previously sold through our health relationship with them, but they bought a tremendous amount of kits upfront. Cash was paid in advance and we’ll see the margin affected by that.
I mean where do you think – if you had to target an overall margin for the company, where would you be targeting?
Sorry, we’re not going to give guidance on margin. We do expect healthy margins from our very accretive business.
On the differed revenues, did I understand that there might be some speed issues related to that?
I’m sorry, say that again.
There might be some unclaimed funds. People may not be actually using these tests, sending a deposit and not following through.
Yes, historically since 2009 we’ve seen tests purchased and not come back. They are not identified as unclaimed funds. We will process the test at any time if somebody sends it back, but we are allowed to the accounting rules to calculate recognition and revenue and we’ve determined it as a remote chance that the test will come back.
Okay guys, listen, I know you’re working hard and all this and I do appreciate it. There’s some frustration sometimes at the shareholder level, but hopefully there’s some super results. Thanks a lot guys.
Thank you sir. It looks like our next question will come from Brian Marckx with Zacks Investment Research. Please go ahead, your line is open.
Brian Marckx - Zacks Investment Research
Hey guys. Congratulations on getting the test launched. Any feedback that you can provide as far as environment numbers and kind of some of the way that you’ve seeing initially and sort of an estimate going forward as far as various enrollments.
Yes, Brian, good to hear your voice. So as Eliot and I laid out, we are looking at what metrics we can provide going forward as this starts to roll out more broadly and I think I can provide a little flavor on this and just reiterate what we indicated in the presentation.
So first of all, we are hoping that we can provide you with the number of the enrolled or covered lives. People who actually – the number of patients who are covered by the new right-sized policies and that represents a realizable and addressable market opportunity at a specific time point, and so that to us is a critical piece of information that we hope to be able to make available as we move into these next phases.
Then that basically has to translate into revenue and so of course we’ll be providing revenue numbers as we move forward and along the way we’ll try to provide some perspective on how to interpret the covered lives into what to expect that those patients actually go into the dental office, because of course this stretches over a period of time. They don’t just all appear in the first quarter for their cleanings and to be tested and a variety of other things and so there’s a variety of a kind of stratifications in terms of the flow of that.
I can give you some qualitative perspective and of course it’s very early in the process, but you know we’re being well received in the offices places. Our hygiene educators are doing a great job and we appreciative comments from the dental offices. Your getting tests in and by and large things are moving along quite nicely.
As you know on this shipment as well as much of the other parts of the country, they had a brutal (ph) winner and it has in fact affected dental office business in general, people who are making their appointments and so I think January has some slow rollout of all of this and much to be expected in this whole thing, but certainly we’re seeing more very nice responses and just moving forward as we move into this next phase quickly.
The main thing is, I can tell you all the systems are working and the hygiene educator system looks to be a really good waiter and convert things, capitalize, assuming that patients coming to the dental office converts them into actual tests, that’s all.
Brian Marckx - Zacks Investment Research
Okay. Can you tell us, is there a specific agreement between Interleukin and Renaissance in terms of Renaissance providing enrollment numbers and we can then on a specific basis. Is there any parameters around that that maybe you could report on an ongoing basis?
We actually have to get numbers from Renaissance in terms of patients who are covered under the policies and are eligible for the test to be reimbursed and so that was really part of this first phase. We’re from an IT standpoint linked with a lot of different groups, all here for compliance, but a lot of information flow; Dental office, Renaissance, Interleukin, a variety of things. So those numbers do become available to us when patients are enrolled under a new plan.
In this first phase Delta Dental actually released publicly on multiple occasions some information about the number of covered lives and who was covered and so as we move forward in to this – and so we did not release that; initially they did. And so as we move into this second phase, we’re hopeful that we’ll be able to provide that information as it becomes available to us.
Brian Marckx - Zacks Investment Research
Okay great. And I realize that there is going to be still somewhat of a lag between the early enrollment numbers and one of the actual process, but your number that you can share with us as far as the number of kits that is delivered since the launch and say January through the end of February, to say mid March.
Yes, I can actually tell you without giving those specific numbers and maybe I can even do that, but the bottom line is it seems to just as reimburse directly by Renaissance once the test is processed and since there is no direct cost to the dental office or the patient, we actually load those test kits into every dental office that has the patient or the record covered by the new policy.
So in January based upon having the list of patients or having the list of dental offices that have patience covered by the new right sized policy, we sent to all of those dental offices test bits, and we are setup so that when a test is sent in for processing, there is an automated test kit performance process, so when we receive the test and its scanned into the system, then our performance center sends new test kits out to that office, that’s sent in the test kit.
The dental officers always have test kits available or whenever the patients walk in the door, so that there is no ordering the test kits, there is no missing test kits, the offices, unless the patient choose to go to a new dentist that isn’t know by Delta yet and that would prompt the office calling us or contacting us.
But otherwise as I said we had over 600 officers involved in this first phase. All of them received multiple test kits, including some test kits to use on their own staff to learn how to do the process. So, its really a question of just, how many patients are coming in the door for the dental offices at period of time and how many get tested.
Brian Marckx - Zacks Investment Research
I presume that you’ve already delivered test kits, so correct?
All of those offices have test kids, they’ve had them since January.
Brian Marckx - Zacks Investment Research
Yes, yes, yes. So I guess the question was, can you tell us how many test kits have been delivered to-date?
Yes and so we spend – giving to each office, so they have something in stock and then anytime a test is submitted they’d automatically get a test that will replace in that office. Dental officers do not like to store things. They have a lot of supplies, they have limited space and so we are set up to automatically within a few days fulfill new test kits based on their use.
Brian Marckx - Zacks Investment Research
Okay thanks. And so the last one, I think the amendment agreement with Renaissance was essentially that you could market to non-Renaissance related plans. Has there been any progress on that and I guess on the new term expectations as far as announcements as far as expanding on Renaissance.
Well we, as I had indicated in the inspection of the discussion, we’ve been very active in communicating this other payers. If say big activity on our part, we’ll have multiple people involved. We are very committed to broaden this and broaden it as rapidly as we can. We view it as a business development activity and all of us on the phone know that those timeframes are unpredictable. But what I can tell you is that we have people involved very actively and aggressively in communicating those other payers and we’re moving along and from our perspective we’re making progress.
Brian Marckx - Zacks Investment Research
Okay, thank you Ken, thank you Eliot and congratulations on the progress.
Thank you sir. And with that ladies and gentlemen, that does conclude our time for questions. I’d like to turn the program back to over Dr. Kornman for any additional or closing remarks.
Yes, as always we really appreciate all of you who are interested in the company, who participate. We appreciate your questions. We do look forward to speaking with you again in the near future and we are busy and have a lot of do and are very excited about how we are moving forward. So thank you.
Thank you gentlemen and thank you ladies and gentlemen. Again, this does conclude our conference for today. Thank you for your participation and have a wonderful day. Attendees you may log off at this time.
Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.
THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.
If you have any additional questions about our online transcripts, please contact us at: firstname.lastname@example.org. Thank you!