Q4 2023 STRATA Skin Sciences Inc Earnings Call

Participants

Rich Cockrell; IR; CG Capital

Dolev Rafaeli; President & CEO; STRATA Skin Sciences Inc

Christopher Lesovitz; CFO; STRATA Skin Sciences Inc

Jeffrey Cohen; Analyst; Ladenburg Thalmann & Co. Inc.

Jonathan Lawrence; Analyst; Odds son

Presentation

Operator

Greetings, and welcome to the STRATA Skin Sciences Fourth Quarter 2023 Earnings Conference Call and Webcast. (Operator Instructions) As a reminder, this conference is being recorded, and it is now my pleasure to introduce your host, Rich Cockrell, Stratos' Investor Relations. Thank you Rich you may begin.

Rich Cockrell

Thank you, operator.
Good morning, everyone, and thank you for joining us for the STRATA Skin Sciences Fourth Quarter and Full Year 2023 earnings conference call.
Earlier today, we released our financial results for the quarter ended December 31, 2023. You can find a copy of the press release on the Company's website before we begin, I'd like to remind everyone that this call may include forward-looking statements. These statements are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially. We encourage you to review the SEC filings, which highlight these risks and uncertainties. The Company does not commit to updating any forward-looking statements as new information becomes available.
Now today on the call, we have Dr. Dolev Rafaeli, our CEO; and Christopher Lesovitz our CFO.
Each will provide an overview of the Company's Q4 performance and discuss the strategic outlook. After their remarks, we'll open the floor for questions.
And with that, I'd like to turn the call over to Dolev go ahead, sir.

Dolev Rafaeli

Thank you, Rich, and good afternoon, everyone, reflecting on 2023, it's evident that it was a pivotal year for Snap characterized by strategic leadership adjustments, product innovation and substantial market expense. The strategic change in leadership at the end of the year, which saw my return to STRATA in October marks a significant commitment to our proven strategy, strategic vision that drives growth and operational excellence.
The robust reinvigorating of the direct-to-consumer DTC recurring revenue model has been a cornerstone of our strategic strategies are proving to be a vital element of our success, especially evident during my previous tenure as CEO for our core extract business between 2011 and 2015 and from 2018 to 2021. It was these periods that marked a transformation in Stretta steering the business towards positive cash flow from operation, expanding our footprint, both domestically and internationally, our streamlining operations and sparking innovation through a launch of new product inserts, central to our plan has been the focus on our flagship products, the extra detract in the therapeutics.
A key highlight of the year was the success of introduction of our therapy or ex equity Therapy System in January of 2023. By year's end, we placed 92 devices under the recurring procedure during 2023. Strata also significantly increased its domestic and international recurring revenue installed base to 964 extract devices as of December 31, 2024.
This expansion underlines our capability to innovate and efficiently respond to market demand just last month, we took an important step to secure our future growth through the amendment of our credit facility with MidCap Financial Trust. This adjustment in our financial strategy, ensuring alignment with the Company's current and future business projection in supporting operation and capital needs is crucial for our continued growth and for and further expansion of efforts.
More recently, we have initiated a campaign to extend insurance coverage to essential dermatology dermatological conditions, aligning with our mission to enhance patient access to vital treatments through the year, improved insurance practices and broadening in inclusion of CPT codes are initially, our efforts are concentrated on securing payer coverage for extract treatments for multiple indications, including vitiligo, CTCL, alopecia areata and atopic dermatitis. This initiative is a testament to our commitment not only to increase the accessibility of our treatments, but also to advocate for the well-being and quality of life of those affected by these conditions.
I note that not all of these conditions are currently approved indications, but we are in the process of moving forward to see if such use may be approved in the future, leveraging our vast database of over 270,000 pest expectations. We are actively collaborating with prominent patient advocacy groups in the Blythe dermatology, key opinion leader community strata also commenced targeted advocacy with legislators and to enhance access to the extra fleet as we continue to ramp up the DTC. revenue model in 2024, we remain laser focused on executing our key strategic priorities. First and foremost, we are working diligently to drive utilization and rationalizing placements of both our Xtract and therapeutics devices.
This involves leveraging our strengthening balance sheet to rebuild and expand the DTC capabilities and stimulate patient demand. By bringing patients directly to physicians' offices, we can increase procedural volumes and device utilization, thereby generating incremental high-margin recurring revenue.
Let's now pivot to review to the review of our financial landscape for our CFO, Chris lesser, which then I will explain a little bit more on the operational side. Chris.

Christopher Lesovitz

Thank you. Dolev. Let's dive into our financials for the fourth quarter and full year 2023. Our total revenue for the quarter was $8.7 million and $33.4 million for the full year. This decrease from the prior year is reflective of the decline in recurring revenue for the company, which we are now shifting back to in 2024.
A crucial element of our approach involves risks, centering our efforts on our foundation foundational business, collaborating with doctors' offices and driving customers to them. This is a return to our roots, a strategic maneuver to enhance the utilization rates within our recurring revenue model. And we are confident that these efforts will start to show it tangible impact in 2024.
Breaking down the total revenues, our global recurring revenues for the full year 2023 were $21.5 million as compared to global recurring revenues of $23 million for the full year 2022. Equipment revenues were $11.8 million for the full year 2023, as compared to $13.1 million for the full year 2022.
Looking forward to 2024, we are building upon a launch of the third correct system in which our emphasis on recurring revenue has started to shape our revenue mix. This strategic pivot is designed to enhance long-term sustainability and profitability with an emphasis on X being reimbursement, CBT. and continuing our focus on the recurring model for extracts.
Turning our attention to our operational efficiencies, particularly within our selling and marketing and G&A areas, I'm pleased to share that we've taken deliberate steps to refine our cost structure. In the latter half of 2023, we implemented reductions in sales and marketing expenditures, which are expected to come to full fruition in 2024. This is part of our broader strategy to return to a leaner expense structure as previously seen in 2019. In addition to the cost savings above, we intend to eliminate nonproductive accounts not only by reducing the costs associated with servicing but also repurposing those materials.
On the G&A front, we have experienced a slight increase in expenses to $10.5 million, driven largely by onetime legal and accounting costs, it transitions within our executive team. Our strategic plan for 2024 will optimize the utilization of our devices, maximize operational efficiency and ultimately improve our bottom line. These adjustments reflect our proactive stance in assurance. Strata operates at a sustainable and competitive cost base, allowing us to invest more deeply in growth and innovation, the full financial impact of these changes and is anticipated by the end of 2024.
Finally, despite a net loss for the quarter, which included the $2.3 million goodwill impairment, a recognition mentioned in our earnings release. We are confident in our strategic direction. Our balance sheet remains strong with a solid cash position to support our growth initiatives.
Cash and cash equivalents and restricted cash at December 31, 2023 were $8.1 million compared to $6.8 million at year end 2022. With this stronger position combined with the anticipated revenues from the sale or use of our products, operating expense management and our amended credit facility with MidCap Financial, we believe we are well positioned to continue growing into 2024.
I'll now hand the call back over to Olaf to discuss our strategic outlook and operational priorities.

Rich Cockrell

Thank you, Chris. As we conclude the fourth quarter. We remain focused on aligning our operations more closely with the evolving market demand and our long-term vision for strength this quarter has been a foundational in setting the stage for the reinvigorating of our DTC marketing and business model, an approach we believe is critical for sustainable growth and enhanced profitability. Our journey towards this strategic realignment highlights our commitment to leveraging the inherent strengths of our business, particularly our close relationship with physicians and our robust clinical support enforcement. These elements are pivotal not only in driving utilization of our devices, but also in creating valuable opportunities for both Stretta and the health care providers.
We plan our goal is to significantly improve our margins to highlight heightened device utilization, generating substantial recurring revenue in the quarter. The core DNA of the DTC. approach is providing unparalleled support of every touch patient and provider insurance benefit supports patient co-pay support and provider, clinical support and patient advocacy.
It's important to acknowledge that shifts of this magnitude require time to fully manifest in our fleet. The previous focus of our efforts, the direct to provider marketing has laid a solid foundation yet the move towards a more DTC centric approach marks a return to a proven strategy that has historically driven our growth and success as we advance, our primary focus will remain on maximizing the economic efficiency of each device in the coming quarters.
We anticipate the impact of these strategic shifts to become increasingly evident in our performance. The extra partnership represents a cornerstone of our strategy to enhance recurring revenue streams. Usage is driven by both strata, facilitating a patient appointment utilizing DTC as well as by the provider prescribing their own patients. Ctc approach fosters a halo effect in which patients are driven both directly as well as indirectly to the to the procedure.
As a reminder, the abstract procedure benefits, all the patients receive a side effect. Free clinical effective procedure cost for the insurance payer is the lowest of all alternatives and the partner clinics generates incremental that this slide encapsulates the past ebb and flow of patient engagement within our practices, punctuated by the influence of our DTC marketing efforts. The initial leads marked in blue, so cases, patient interest in our extra excimer laser treat dark gray highlights the scheduled appointments, a direct result of our targeted marketing campaigns. The green bars, our RDX charts reflects the on translation of leads and appointments into actual new patient charts ready for the team.
As we started ramping up our DTC efforts in 2024, we have focused on four geographic areas, New York City, Florida, Texas and Illinois. And we've selected these areas to validate our historical cost per lead, which is around $30 to $40. And our historical cost per in-clinic patient appointment, which is approximately $300 each of the patients, whether driven by DTC or provided or provider generated, generates a patient chart in Stratos for five proprietary RBS system which allows the tracking of insurance benefits and supporting the MA providers and patients in fully realizing this.
As a reminder, during 2019 and 2021, we were able to drive 5,000 and 6,000 thousand patient appointments, respective contributing about 25% of the overall new patients as the value of full course of treatment of an individual patient to Stretta and to the partner clinics is more than $1,200 in $2,900, respectively. Successful capture of these patients in the clinic and into procedures is critical in our key monitors as these newly generated appointments are underway for 2023, with DTC. underutilized STRATA had a total of 185 leaves 23 appointments and 11,787 RVSI shots. These numbers represent our baseline as we reinstate our DTCH.
Our DTC campaign started ramping up in the second half of January 2024, and we'll continue expanding as we increased the number of targeted periods. Unit economics for each individual extra device is the best measure is best measured by an average revenue per box prior to the pandemic in 2018 and '19, with DTC. was the core focus.
We saw significant growth in the number of extra devices deployed as well as an increase in the average revenue per device in 2019. Each of the 820 partner clinics generated on average $7,200 per quarter post-pandemic. While the business has mostly returned the Company to focus its marketing resources on direct to provider initiatives, increasing sales and marketing expenses from $12 million to over $15 million while reducing the DTC. initiative and its costs.
The impressive 13% growth in domestic installed base from 820 in 2019 to 923 and 2023 was coupled with a lack of DTC. driven appointments and its associated halo effect, resulting in a reduction of -- 28% in the average revenue per device per quarter to approximately $5,200 per device per quarter for 2023.
The expansion in the installed base maintains a robust foundation to revitalize our DTC. initiatives aimed at boosting procedure volumes, enhancing device utilization and driving up the average revenue per device per quarter.
All while being able to rationalize the size of the installed therapy or ES system represents a parallel success with 92 devices already active in clinics focusing on cash-paying patients, yet the substantial opportunity lies in integrating the therapy or X into our clinical dermatology network where the focus shifts to insurance reimbursed treatment. This pivot not only reduces the financial burden on the patient, but also promises improved clinical outcomes, thereby potentially increasing patient volume and device utilization.
Late in the fourth quarter of 2023, we have started transitioning existing accounts and adding others to the insurance reimbursement cuts. To date, our insurance benefits team has processed several hundred individual patient charts, resulting in 86% payer pre-authorized, a CRI authorizing a course of our treatments for patients and providers and providers all across the country.
The CPT treatment code average Medicare payment rate is approximately $120 with private payers dairymen, Brad already owns approximately 200 there to your actual devices. And each additional patient represents approximately $500 and $1,200 of potential incremental revenue for STRATA and provider respective internationally.
As we expand into new markets, our installed base of over 1,400 extra Can you track devices continues to provide a robust and reliable revenue stream.
In closing, I want to emphasize the strides we've made in 2023 as we recommit to our DTC. model and capitalize on our expanded installed base strategy efforts. The strategic efforts are integral to our mission of enhancing the patient and physician experience and are the driving force behind her anticipated growth and margin improvement.
Looking ahead, our commitment to operational excellence and strategic marketing will elevate Stratos'. Our profitability in shale builds are down in the near term. We think we thank you for your support and look forward to navigating the future with confidence and Clarix let's now open the floor for questions. Operator?

Question and Answer Session

Operator

(Operator Instructions)
Jeffrey Cohen, Ladenburg Thalmann.

Jeffrey Cohen

Holds a lot of encouragement how are you?

Christopher Lesovitz

Hi Jeff.

Dolev Rafaeli

Hi Jeff.

Jeffrey Cohen

So firstly, could you talk about how you're planning on defining nonproductive accounts and perhaps give us a sense of what percent of accounts out there are currently either hauling beneath that nonproductive line?

Dolev Rafaeli

Absolutely I'll start with that increases in ad on metrics. So this initiative is not new. This was already discussed by a previous management going into the going into the third and fourth quarter of last year. However, as you've been following this business for several years now, that CGM and probably the most important metric in how this business becomes profitable is how much revenue we generate per device because almost every other expense is fixed.
So for reference, in 2018, our average revenue per device was in the range of $5,000 per device per quarter, and we were able to push that up with all of our initiatives in the D2C to almost to almost $7,500 per device by the end of 2019 so 2019, represented about $30,000 per device.
In 2019, we have 820 at the same installed base of net. The Company, on the other hand, are almost the same installed base met the Company at the other end of pandemic coming into 2021, as the Company started extending the installed base coming out of pandemic in 2021, the auto business for the year was a story of two halves. In the beginning, offices were coming out of the pandemic and started starting their businesses back up. But then by the end of 2021, we were back at the same on a run rate. So if you look at 2021 as a whole, the average revenue per device for 890 devices by the end of 2021 was approximately $25,000 per device.
Now fast-forward to 2023, we have over 900 devices in the market, 923 hours or the average is about 21,000 for the whole year on. And that's what gives us an opportunity. The opportunity of either revising existing existing devices for removing them and using them instead of building new devices.
When you start expanding again, the on the threshold metric would be obviously how much revenue this device is generating or how much this device can generate. But but as a whole, as you look at this as an installed base, every one of these devices that does not generate on in excess of on average in excess of [$15,000 $16,000] is not is not contributing to the bottom line on the end, and that's the that's the target. The target is going to be to optimize the installed base, perhaps on the one hand and increase utilization on the existing installed base.
On the other hand, I would not. We anticipate very strong moves in the US in the installed base either way. If you look back into the company's disclosures in the past, we have every year renewals in the range of 100 to 120 devices.
And in the years that the company was extending, we placed more than 100 or 120 in the years of the company was shrinking. We've placed less than 100 or 120. So it's not going to be it's not going to be the complete stop of extension, but it's going to be are somewhat of a of a shrinkage of nonperforming devices just in order to we placed them in with accounts that could be more productive as we reintroduce therapeutics. Chris, do you want to add something?

Christopher Lesovitz

No, I think you nailed it pretty much there. As Dolev mentioned, our main goal here is to get these nonproductive out and use that excess inventory for us internally at the warehouse. And then we redeploy them to actually producing a dermatology offices for Yes, but only partly by some of the African producers are generally more.

Dolev Rafaeli

It's more it's more a movement within the balance sheet, some sort of instead of having to recreate additional devices, new devices and move them into PP&E. We already have done. We're moving away from non-productive accounts either into other productive accounts or into the warehouse for the disease to be utilized and into productivity.

Jeffrey Cohen

Got it. Okay could you talk about alopecia a little bit as far as what's the recommended number of treatments over what duration? And are there any current data points or studies ongoing?

Dolev Rafaeli

So great question on alopecia and some other indications or indications that are on that have extensive clinical data. I will make sure to follow up after this call and send you our own clinical data for that. We are the arm, the excimer laser is used for the treatment of these conditions.
Specifically, I was talking about alopecia areata, which is the which is the are the hair loss patches caused by and by autoimmune diseases. And he was also talking about about CTCL, which is another autoimmune inflicted disease at these conditions are and have been used by clinicians or the Exxon has been used by conditions to treat them.
And these conditions are being treated. And from the Company's perspective, they're being treated off-label because via the FDA labeling of the device sales for the treatment of psoriasis, vitiligo, atopic dermatitis and look at their mind on. However, these conditions are being treated, have been treated over our multiple years and in are being paid and accepted by the commercial payers. What we are trying to do is we're trying to bridge that gap. We cannot actively promote anything that's not labels. So that's firmly on the FDA front. And so we're in actively promoting it.
We're providing clinical data, but we cannot we cannot the use of the device. I can look and we can also it's very hard for us to have to negotiate with the with the payers if it's an off-label indication. However, we have very solid track records of these conditions being approved by?
It's paid by video from the payers, both both Medicare as well, private pay.

Jeffrey Cohen

Okay, got it. On next question, could you talk a little bit about some of the clusters out there, OUS. stores on direct and growth in, say, LatAm, Europe as well as Asia?

Dolev Rafaeli

So on are our biggest clusters of users have always been in Asia on China and Japan and South Korea on in US, China, Japan, South Korea, as well as in the Middle East. Of these, these markets are different from each other in the sense still in some markets like Japan, all and in South Korea procedure is covered by the I'll buy the insurance from the healthcare insurance companies, and we have been accepted as a brand.
We've been expect accepted as the leading brand in these markets, and we do take a leading position in that market in terms of the market share of providers using this where the other markets are either more aseptically driven. So China, where it's mostly cash pay or state health care insurance driven like the Middle East deal mostly the Kingdom of Saudi Arabia and the other from the other companies they're on. We have north of 1,500 devices in these markets, and we've had them for over 14 years.
We started doing this 40 years ago and the sales into these markets is broken into three components. We sell capital equipment, so we sell new devices and that is used for replacement of existing devices and going into new accounts. We sell parts and consumables into these markets, which represents about one-third of the revenue from where the excimer laser requires gas and other components to maintain it. We've seen we've seen this in these markets as well as in the domestic market at the lifespan of these of the extra devices has been well north of 10 years.
We have devices that have been in market for 14, 15 years, but it does require are Eric Hertz and a third component, which is software that we introduced are 2021 is the placement of devices basing on recurring revenue, which is up started at the end of 2020 and due to a to the extent of about $1.5 million in revenue annually as also because of last year, this was true for all of the Asian markets.
One of the Asian markets, China decided to move away from that, mostly because of because of their own limitations on EN, maintain devices in the market that are not owned by them. But we are we continue having placement devices in Korea and as well as in Japan. This allows users to connect to the therapy without having to commit to hundreds of thousands of dollars in the year in a row, the cost of the aircraft equal.

Jeffrey Cohen

Okay, got it. And then lastly for us, just on the pressure a little bit on 2024. So firstly, I'm wondering how many ArthroCare devices you aspire to having at the end of the year? And then secondly, on no guidance on top or bottom line, you did mention growth are you referring to 5% growth or 20% growth or any idea there that you can now provide that does it for us?

Dolev Rafaeli

So let me start with the second question on the GSK. The key initiative in 2024 is to is to bring the company back into a growth mode and the recurring side while maintaining the other components of the company.
Now I'll vote parse the referring side. So the recurring side has three components. One I just spoke about, which is the non-U.S. And as I said, there are some there are it's an existing and growing markets, very stable. We've been in these markets for many years are we are the leading brand and it's it's its own. It's a very and I want to say easy, but it's a very efficient transaction for us as well as for the distributors and the customers of that size and ending in 2023.
As I said, it was I mean, you can see this in the 10 K, but it was approximately [$1.5 million]. These markets, the second component, and you touched upon this is the territory. So the Company owns in terms of have acquired about 200 devices.
So without having in that investment sits in the PP&E on and off in the beginning balances and the deployment of these devices and getting them to utilization was the prime target of the home changes we've made at the end of Q4 2023 when we decided instead of continuing to pursue cash-paying patients or cash changed positions on, we were positions that are collected cash flow procedures.
We have pivoted towards going after clinics where the D&O insurance reimbursement is the maintenance. And as I have explained in the room in the third quarter earnings call in November, this is the goal. And we're first going to be tracking through. Can we get these clinics to use the procedure? Can we get patients are cleared through insurance? And then can we get on the other on the other hand, to get the clinics to collect on the procedure as they're being reimbursed.
As I said in my prepared remarks from Bob now, we had several hundred patients submitted to insurance. We handle very high percentage of approval rates on a very nominal nonaccrual rate. And now we're on the back end of that, looking at them at providers of treating the patients submitting for reimbursement in getting paid. And as I said in my in my remarks, what we see is that the of the average, the average Medicare rate is about $120 and the private payers are paying them on average, that amount, but it but in some areas, it's much higher than that.
There are some areas or it's lower than that as we as we stand now, we have hundreds and hundreds of patients in the process of being treated and of payments being collected as well. I would assume by the end of the first quarter, we'll be able to provide actual guidance on what would we anticipate our recurring revenue per device to be or to go to and what would be the number of devices we anticipate having by the end of the year.
I can. I can say just as a side note for the first quarter, we are seeing a growing acceptance of the usage of the reimbursement on and that is happening in light of two trends. One is there was another there was another device in the market, too, that took a lot of attention in the last couple of years and there is disappointment from that device, not so it's technology. It's a different company offerings, technology, the core Congress about the inability of driving patients for cash realization realization that patients will get covered by insurance and there their exposure is there out of our pocket co-pay. And having done that now in all regions from the country with a very large number of payers gives us a lot of confidence that by the end of Q1, we will be able to provide guidance on our quality targets as revenue. And I hope that explains that.
On the extra video, I did speak about where we want to be. So we are we've ended 2023 at just over $5,000 doors as of if we could get by the end of 2024 to be where we were at the end of 2021, which is the range of $7,000 -- $7,200 per device for the fourth quarter. This is going to be this is going to be a great outcome because it's going to provide a meaningful upside on the on the on a recurring recurring run rate.
I'll just as a reminder, the recurring revenue for the company has been in decline for the past for several quarters. So being able to get to a softwood have declined, let's start seeing the decline in my eyes would be public.

Jeffrey Cohen

Perfect. Okay. That does for us Thanks for taking the questions.

Operator

(Operator Instructions) [Jonathan Lawrence], [OddsOn], they just don't fit our criteria.

Jonathan Lawrence

My questions was answered. I can hear me.

Dolev Rafaeli

Yes.

Jonathan Lawrence

Okay, great. I was just curious on the direct to consumer business on the how is that going as far as the traction in both extract and also on their clear Rx stores, what you saw previously when you were doing this and kind of if anything's changed or it's the spend dollars and getting the It leads?

Dolev Rafaeli

Well, great question. Thank you, Al. I'll just point out to a few things. I said through my prepared remarks on when when strata left off DTC, which was the beginning of 2022 from via a video detection standard direct-to-consumer spend for the year of 2021 was in the range of approximately $2 million.
That's $2 million generated about 6,000 apartments, which were which were approximately 25% of the new patients introduced into the clinic. So if you wish, yeah, the Company subsidizes about 25% of the patient growth into the into the clinic in in 2022, the company our stock doing DPCLL. in 2023, it moved most most of its resources towards our direct to provider marketing and promoting promoting the new therapeutics.
Our Buy going back to GPC., we would like to see the the restart of getting these leads and getting these for sale. And the most important first step was to reestablish where are we in terms of costs? Because two years have gone by the cost of media has changed. The rules on online advertisement have changed. The the available solutions are being promoted through social media and online have changed to different pharmacies of pharmaceutical companies.
So we wanted to see where we stand. We started doing DTC in the second half of January of 2024 with only four territories, as I mentioned in my remarks, in anticipation to see where we stand in terms of results and we work happening, supplies to see that our cost per lead in the range of $30 in our cost per appointment in the range of $300 remains our stable.
We have since extended. So additional categories, which I will be happy to provide more details as of first quarter end. And we're seeing a growing number of leads, a growing number of appointments being scheduled into a into a clinic. And by that, we should see the the results of the VTC. power in the range of two to three months into into the compare because it takes time from the time of the year, you have reimbursement schedule.
The first appointment happens via the procedure is prescribed and no via the patient starts getting created 11 radars consumptions of treatment codes. And we see that occurring where we I would like to be at the end of 2024 a better position to say that in Q4, we spent as much as we spent in Q4 of 2021. And I would also like to be in a position to say that the end of Q4 2024, we generated as many appointments as we at the end of 2021, I provided in my remarks the baseline so that the subsequent conference calls people will be ready to follow through the year success or the progress of this initiative. But I am confident that with these levels of cost per lead and cost per approach lives, we will be able to expand the the efforts of meaningfully through at the end of Q1 and well into into Q2.

Jonathan Lawrence

Okay. Thank you very much.

Dolev Rafaeli

Thank you, John.

Operator

Thank you. There are no further questions at this time, I would like to turn the floor back over to Dr.
Rafaeli for closing comment.

Dolev Rafaeli

I would like to thank everyone for showing up for our earnings call. We will be back at the end of the first quarter to provide further updates. Thank you very much.

Operator

This concludes today's teleconference. You may disconnect your lines at this.
Thank you for your participation.