Welcome to the Hamilton Thorne Ltd. Fourth Quarter and Year-End 2021 Earnings Conference Call. Before turning the call over to your host today, please be reminded of our standard public company filing on forward-looking information and use of non-IFRS measures. Certain information presented or otherwise discussed on this call may contain forward-looking statements. These statements may involve but are not limited to comments related to strategies, expectations, planned operations, product announcements, scientific advances, or future actions. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Should one or more risks or uncertainties materialize or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance and achievements could vary materially from those expressed or implied by these forward-looking statements. These factors should be considered carefully, and prospective investors and other parties should not place undue reliance on these forward-looking statements. The company assumes no obligation to update such forward-looking statements or to update the reasons why the actual results could differ from those reflected in the forward-looking statements unless and until required by securities laws applicable to the company. Additional information identifying risks and uncertainties is contained in filings by the company with the Canadian Securities Regulators, including, without limitation, the company's Management's Discussion and Analysis for the quarter and 12- months ended December 31, 2021, which filings are available under the company's profile at www.sedar.com. During this call, the company may reference adjusted EBITDA, organic growth and constant currency as non-IFRS measures, which are used by management as measures of financial performance. Please see the section entitled use of Non-IFRS Measures and Results of Operations in the company's Management's Discussion and Analysis for the period covered for further information and a reconciliation of adjusted EBITDA to net income. Now, let me turn the call over to Hamilton Thorne's CEO, David Wolf. Thank you, and good morning to all, and welcome to the Hamilton Thorne fourth quarter and year-end 2021 earnings conference call. As most of you know, my name is David Wolf. I'm the President and CEO of Hamilton Thorne. With me on the call today is Michael Bruns, our Chief Financial Officer. This morning's call will have the following format. First, I will provide a summary of operational and financial results for the quarter and year ended with a focus on our sales, markets and operational performance. Michael will follow with a more detailed discussion of financial results for the periods, as well as a review of our financial position and liquidity, and I'll return for a few minutes to provide some information on our outlook for 2022. I'd like to remind all participants that we do not provide financial guidance, so I'd ask you to limit your questions to either historical periods or general trends in the business. I'll begin with our sales results. I'm very pleased to report that we finished the quarter and the year with record revenues and record adjusted EBITDA in both periods, highlighting the continued strength of our business as demand and growth of most of our markets has returned to normal levels following a more COVID impacted 2020. Let me give you some of the highlights from our performance. Sales increased 32% to over $52 million for the year, and sales for the quarter increased 27% to $15.6 million. Sales in constant currency increased 28% for the year and the quarter, reflecting currency fluctuations as the dollar strengthened throughout the year. Gross profit increased 29% to $26.2 million for the year and 22% to $7.9 million for the quarter. Net income increased 150% to $2.4 million for the year, but did decrease 15% to $836,000 for the quarter. Adjusted EBITDA increased 48% to $9.8 million for the year and up 17% to $3.0 million for the quarter. Organic growth in U.S. dollars was 23% for the year, 22% constant currency, and organic growth was 12% for the quarter and also in reported U.S. dollars and also in constant currency. Cash generated from operations was $5.6 million for the year, and we ended with total cash of $17.9 million. To give you a little more color on this, the sales were up across all of our product categories. Consumable sales, which largely represent organic growth, leading the way with over 50% growth for the year, ahead of strong equipment sales growth, which was in the mid-30% range, and services growth in the teens. Looking at field of use, sales into the human clinical market were up substantially for the quarter and the year, driven by strong demand for all products and services. Sales into the cell biology and research markets also grew substantially for both periods, albeit off a much smaller base, while sales into the animal breeding market were down for both periods. Gross profit margins were down at 50.1% for the year versus 51.3% for the prior year, primarily due to product mix, particularly the impact of additional direct sales of third-party products and the addition of the somewhat lower margin, say, IVFtech products in the second half of the year. We were also impacted by increased cost of materials and shipping due to supply chain issues, which was partially offset by increased sales of higher margin proprietary equipment, branded consumables and quality control testing services. Gross profit margins for the quarter were up versus the prior quarter, so up sequentially at 50.7% and also down versus the prior year. Our operating expenses were generally in line with our expectations, with increased costs associated with maintaining investments in R&D and sales and support personnel, as well as variable costs of sales returning to historical levels and acquisition expenses post transactions. We also completed a significant expansion of our product line, rapid coverage and scale when we acquired Tek-Event in April this year and IVFtech in July, which also has, you know, expanded our direct sales footprint into Australia and the Nordic countries. I'll now turn the call over to Michael to provide a more detailed discussion on the numbers. Thank you, David. Good morning, everyone. I am Michael Bruns, the CFO of Hamilton Thorne. I'll briefly highlight the fourth quarter and December year-to-date performance. David has already provided an update on sales and gross profit, so I will focus on other elements of the income statement as well as the cash flow and liquidity of the company as of the year-end, December 31. Operating expenses increased 32% for the quarter and 28% for the 12 months ended December 31, which included $80,000 of acquisition-related expenses in Q4 and $688,000 for the year versus no direct spending during the COVID impact in 2020. Excluding those acquisition costs, comparable expenses increased 31% for the quarter and 24% year to date. Expense increases are also attributable to the inclusion of IVFtech and Tek-Event expenses post-closing acquisition, as well as increased non-cash share-based compensation. Expenses also increased due to volume-related increases in variable costs of sales as well as continued investments in R&D, sales, and support resources. The continued return to normalization included increased spending for sales and support teams travel to customers and increased trade show activities. The gain on debt extinguishment of $775,000 was the result of the forgiveness of the U.S. Paycheck Protection Program or PPP loan obtained in May 2020 by our U.S. subsidiary. The prior year, 12-month change in the fair value of derivative was attributable to the warrants which were fully converted to equity in April 2020. Income tax expense increased to $400,000 for the quarter ended December 31 and $1.8 million for the full year, due primarily to substantial increases in non-cash deferred tax expense. The 2021 deferred tax expense increased to $435,000 for the quarter and $1.2 million for the year. The significant non-cash expense is attributable to changes in the valuation estimates of deferred tax assets and related foreign tax credits, which required reductions in those previously recognized deferred tax assets. Net income for the quarter was $836,000, a decrease of $124,000 from a very strong Q4 of 2020. Net income for the 12 months of 2021 increased 151% to $2.4 million, an increase of $1.5 million over the prior year, primarily due to increased sales and related gross profit, debt forgiveness, and the elimination of changes in fair value of derivatives, all partially offset by increased operating expenses and increased income taxes. Adjusted EBITDA, which we consider an important metric of our financial performance, increased 17% to $3.0 million in Q4 and increased 48% to $9.8 million for the full year 2021 versus the prior year Q4, $2.5 million and $6.6 million for the year 2020. This is primarily due to more normalized operations in the 12 months of 2021 versus the substantial revenue and gross profit decreases in the second quarter of the previous year, again attributable to the COVID-19 pandemic. These 2021 gains were somewhat offset by the impact of mix and supply chain issues on gross profit margins and planned increases in operating expenses rather in the period. As a reminder, adjusted EBITDA is a non-IFRS measure. Please see the reconciliation of adjusted EBITDA and net income for the quarter and the full year in our MD&A report filed today on SEDAR and also on our HTL website, as well as the definitions of adjusted EBITDA, organic revenue, and constant currency. Turning now to the company's cash flow and balance sheet. company generated cash from operations of $1.8 million in the fourth quarter and $5.6 million for the 12- months year-to-date, down 6% from the prior year. This operating cash flow is attributable to the substantial revenue and gross profit improvements, offset by increased inventory levels, expanded over several months to address the increased product offerings and supply chain issues. Cash flow was also impacted by reduced accounts payable and accrued expenses, primarily attributable to the timing of our gradual increase in inventory. Cash used in investing activities was $9.0 million, increased due to the total cash payments of $6.9 million made in connection with the IVFtech and Tek-Event acquisitions in July and April. In addition to the normal expenditures for ongoing investments in capitalized intangible development costs by our R&D teams and CapEx for equipment and demo units for production and sales teams. Cash utilized by financing activities was a net of $423,000, including the new term debt of $5 million obtained as partial financing for the IVFtech acquisition, all offset by scheduled term loan and lease obligations, and the final $2 million of payments in 2021, reducing the company's line of credit to zero as of December 31. The company's resulting cash balance of December 31, 2021 decreased to $7.9 million for the 12-month period. That decrease of $3.9 million entirely attributable to acquisition activity in 2021. Working capital for the period actually increased $980,000 to $23.1 million. Total availability in our lines of credit has increased to $12.5 million, consisting of the $8.0 million acquisition line of credit, as well as the full $4.5 million of availability in our revolving line of credit. This combined $12.5 million of bank lending is an important additional resource in our ability to complete acquisitions with a relatively low cost of capital. This availability, combined with our cash on hand of approximately $18 million, makes us well-positioned to support our operations in the coming months, including the continuation of our acquisition program and financing further growth as the business climate continues to improve. Now let me turn the call back over to David to comment on the HTL outlook. Thank you, Michael. Looking forward into 2022, we continue to be extremely optimistic on our revenue performance as demand and growth have returned to pre-pandemic levels in nearly every market that we serve. As I mentioned earlier, our Q4 gross profit margin was up sequentially, and we have implemented across-the-board price increases in early 2022 that should help address supply chain costs as well as general inflationary pressures. That being said, we do see the possibility for quarter-to-quarter variability in sales and margins during the year as we continue to work to manage the supply chain issues that admittedly are of the type we believe are affecting all market participants, and also as the scale of our manufacturing and logistics capabilities scale up to meet demand. In addition to working on strong organic growth, I'd like to spend a few minutes discussing some of the initiatives that we're working on that we expect will contribute positively to our growth and profitability over the longer term. First, as I mentioned, we continue to work on strengthening our supply chain and expanding our manufacturing and logistics capabilities in both of our major locations in the U.S. and our U.K. location. Second, we have significant efforts across the board to manage the transition to the new medical device and in vitro device regulations in the European Union. Third, we continue to invest in expanding our direct sales and field service initiatives in Europe and the U.S. to support the growth and the sales of the full range of Hamilton Thorne brands, augmented by select third-party products that will allow us to support an entire lab. Finally, we continue to make progress on accelerating our acquisition program. We have an active pipeline right now and are actively working on multiple opportunities. As we have seen over the last couple of years, the world is full of uncertainty. Even as we face the possibility of a resurgence of COVID-19 cases due to new variants affecting demand, supply chain issues and lockdowns affecting supply, and the war in Ukraine roiling markets, we feel good about our market position and are confident in our team's ability to address these challenges. In summary, we feel that we are well positioned to continue to execute on our strategy of driving long-term growth and EBITDA expansion by investing in organic growth while building scale, enhancing our product offerings, and expanding our geographic and direct sales footprints through acquisitions. We'll now open the line up for questions. Your first question comes from the line of David Martin with Bloom Burton. Hi, David and Michael, can you hear me? Yes. Yes, we can. Oh, okay, great. Talk to you again. You too. You mentioned the return to pre-pandemic levels. Does that apply to early this year as well, January, February? Certainly, you know, a lot of other companies were mentioning that was difficult times because of Omicron. Yeah. Again, I'll remind people that, you know, our conference call is designed to talk about 2021, but here we are in April of 2022. I understand the natural inclination to wanna talk about 2022. I would say in general, in most markets, we did not see significant differences in demand due to problems from COVID. We certainly saw, as everybody knows, we've seen more cases and that did affect some of our manufacturing capabilities as we had more people and other capabilities in the company as we had more people out sick. I would say, we haven't really seen a significant change in demand. I would, again, you know, now we're into global speculation, but as everybody knows, COVID situation in China with their zero tolerance policy now has Shanghai shut down, which may impact or affect some demand in China, and of course, if that spreads, that could be a more important issue. We do feel these are transitory, and again, our history and the history from 2020 first half into second half of 2020 and early 2021 is that the demand, if for whatever reason, either clinics reduce activity or customers, patients are nervous, the demand doesn't go away and it really just is deferred and you end up with this greater demand in the following quarters. Okay. Just to be clear, when you say no change in demand, is that no change versus pre-pandemic levels or no change versus, say, last year when pandemic was still impacting volumes? Yeah. I would say again, we're broadly generalizing, but no significant change with, you know, some exceptions country by country versus pre-pandemic levels. Okay. Second question. You mentioned the IVFtech negative impact on gross margin. Is that something that you can work towards improving as you go forward? I know with some of your other acquisitions, as you layer direct sales in the place of distributor sales, you can improve the margins. Is that something you can do here too? Absolutely. That's clearly part of our business plan is to. Again, when we buy a business, we generally buy what I would say are strong businesses. The IVFtech is a strong business, great products, great brand. But the reality is based on the kinds of products that they have, and particularly as there's a lot of frankly steel and aluminum in them, which were impacted in the second half of the year by inflationary pressures, we saw some meaningful margin pressure. We have done price increases on those products, fairly significant price increases on those products, as well as looking to and have gotten first signs of success in converting what had previously been distribution sales to direct sales. That is our, I guess, our MO. So far we're on track. I will say given the inflationary issues, you know, it's hard to know, you know, exactly when everything will work through the system, but we still feel that that's a solid plan. Okay. That's it for me. Thanks. Thank you. Your next question comes from the line of Tania Armstrong-Whitworth with Canaccord. Good morning, and thanks for taking my question. First off here, I guess, is more on the macro side. Could you speak to how the acquisition of Cook Medical by Cooper could impact you guys in the competitive landscape globally? Sure. I will call everybody's attention to, without getting too deeply into it, that Cooper has made a bid to buy or I think has an agreement to buy, there's an agreement in principle, Cook Medical, which is a fairly large player. About two-thirds of their business is in IVF, and a third is in general gynecological products, which is an area we don't participate in, as you know. As far as I know, at least as of yesterday, the deal hadn't closed. You know, we'll wait and see how that turns out. In general, I would say that, you know, we don't see this having, you know, really significant effect on the competitive situation. Cook Medical, you know, is a fairly large player, and it will obviously increase Cooper's size, but it doesn't. You know, one of the things, you know, we've often said is while they would be a large player, they're certainly not a dominant force in the market. You know, I think there's, from their perspective, a lot more product overlap, and that Cook Medical is much stronger in products like catheters and needles, which are products that we do sell some of, but are not, you know, not by any stretch, a significant part of our business. I would say in the short term, we certainly wouldn't expect to see, you know, any meaningful impact. Over the longer term, particularly as we expand our product line into areas, again, similar to what Cook sells, we could see it being a more competitive situation. Okay. Perfect. Thanks so much, David. Then secondly, I think you touched on one of your growth initiatives being strengthening that supply chain and your manufacturing capabilities. The latter is something I think we've talked about like months, maybe years ago, about moving some of that consumables manufacturing in-house. Can you provide any more color on where that stands? Sure. We've always had, for the most part, our consumables manufacturing has been done through contract manufacturers, which, you know, I don't think is frankly all that unusual in our field, given the scale. We have brought some of that in-house and moved contract manufacturers to have a little more control over things. In general, the areas where we're doing the investments are, on the manufacturing side, in our equipment manufacturing, where again, we're building capacity to meet demands. Building capacity to meet the logistics needs of doing more third-party products and particularly consumables distribution, which the consumables tend to, you know, they're relatively individually low value, but collectively high value and high margin and take up a lot of space. We end up needing a little more space for those. Okay. Excellent. Thank you. I'll give back in the queue. Your next question comes from the line of Justin Keywood with Stifel. Hi. Good morning. Thanks for taking my call. Just on the outlook and the comments around the expectation for continued good growth. By geography, is that pretty consistent around where Hamilton Thorne operates? Or are there any rising geopolitical risk or other factors that may affect demand in any particular region? That's a good question. Allow me to talk a little bit about the geopolitical issues. In general, if you followed in our investor deck and our AIF, which I believe will be filed today, we show the progression of our business. We had more growth last year in the Americas and in Asia-Pac than in Europe. I think that's consistent with what we told people to expect. The Asia-Pac region is, you know, gonna be a continued high growth region for a long time, which we're putting a lot of effort into, and we would continue to see that happening. I would say that trend will continue. They tend. These longer term macro trends sometimes get some convolution, I guess. Because when we do an acquisition there, the mix of the acquired business may be a little bit different, so it tends to fuzzy things up. But certainly that longer term trend you would expect to continue. In terms of geopolitical risk, I will say obviously the biggest geopolitical risk today is around the Russian-Ukraine war. We do have exposure to Russia and Ukraine in terms of sales through distribution. We do not have either facilities or personnel in either location. We, you know, expect we'll see how things develop because perhaps Kiev is coming back to normal, but we certainly did not expect to see significant business from the Ukraine this year, but one never knows. Certainly in Russia we've made the decision to suspend sales to Russia for the time being, so just given the status of the behavior there. Collectively, these amount to maybe a half percent of our business. You know, not zero, but certainly not material. You know, it's gonna get a little small headwinds. You know, again, if you look at our risk factors, you can also ask, "Well, you know, what happens if these conflicts expand?" Then you end up in a slightly different situation. But certainly we're not expecting the geopolitical risk to have a big impact on us. I will say, one of the fallouts of the geopolitical situation, which is a trend that started last year, has been currency. The euro and the pound, which we trade in a fair amount of both, weakened against the dollar. That'll give us a little headwind on reporting. As you know, we report constant currency numbers, and you have a good sense of how the businesses are truly doing beneath the surface. Thank you. That's helpful. On the price increases, has this already been initiated and completed or is it in progress? Also what has been the response to the price increases? Has it been relatively easily passed through or any resistance? It was announced in Q4, implemented in Q1. We saw, as you would imagine, you know, not a huge amount, but at least some level of forward buying, people wanting to buy into locking old prices. We did honor quotes that we had outstanding, that would be more on the capital equipment side. You know, sometimes we had some big quotes for our consumables. We'll see the impact of these scale in throughout Q1 and probably mostly through Q1, and then we should be largely impactful in Q2 and beyond. In terms of resistance, I think whenever you raise prices, you always get some level of resistance. There's certainly a recognition that our costs are going up across the board. I think our price increases were, you know, we've seen, you know, getting anecdotal reports of price increases from competitors in our field, and ours was, I would say were, in line generally with what's going on, a little higher than some, a little lower than others. So across the board, I'd say they're being implemented, again, with exceptions where we have either contractual commitments or our quotes outstanding. Do you have any insight into the consumer receptiveness to the price increases? Like, has that been just largely, I guess, accepted? Or has there been any, you know, change in demand at the end level of the consumer? Yeah. It's an interesting situation that we're in because particularly on the consumable side where the price increases, you know, can conceivably be passed on directly, you know, and pretty quickly. You know, our price increases were pretty modest. They were in the low single digits% in general. As you know, average amount of consumables used in each IVF cycle, you know, could be depending on the procedure, $300-$500. Add a few percentage points to that, and it really doesn't have a meaningful impact on, you know, rounding broadly a $15,000 cycle. I don't believe our costs are gonna flow through directly to the consumer and/or have any impact on the consumer. That being said, I would imagine everything else at the clinic level from the, you know, the pharmaceuticals, the other products that are used, labor, which is the biggest spend, rent and all the other infrastructure are also having inflationary pressure. We might see some price increases, and then we'll find out, I guess, if that affects demand. Okay. Thank you for taking my questions. Thank you. As a reminder, if you would like to ask a question at this time, simply press star then the number one on your telephone keypad. Your next question comes from the line of Paul Stewardson with iA Capital Partners. Good morning, David and Michael. Paul calling in for Chelsea. That's iA Capital Markets. Must have been a typo there. Just wondering about your margins. You know, given all of the color you've given for 2022 with the revenue growth rebounding even more and being at pre-pandemic levels, but the costs obviously going up quite a bit, you know, how does that shake out in terms of the EBITDA margins? Any directional guidance there? Yeah. Maybe I'll ask Michael to make a few comments on it again, given context that we don't give you know guidance on the numbers. Sure. I think that in very general terms, I think we are seeing that the inflationary challenges and supply chain issues are still out there, still substantial and still being sort of calculated and impacted into our inventory purchases and obviously flowing through to our cost of goods sold. I would say that those are, as much as we are working on those are certainly impactful. I think that our outlook is for the long term. We will continue to improve, but those challenges of quarter to quarter in terms of mix, in terms of how that shakes out in terms of our different relative sales levels for the products within our mix, the amount of third-party products which we like to sell and part of our lab strategy for providing everything to the lab, but obviously an impact on margins. All those factors are going to contribute to variability, choppiness, lumpiness, the types of things that are gonna be, as much as we would like to control them, are gonna be somewhat beyond our level of control. I would say very short term, the quarter-to-quarter can be impactful. Very much long term, we think we have the right things in place. Okay. To follow up, in terms of your R&D increasing, and I know we've talked in the past about some of the opportunities that you have there with new products. Can you talk a little bit about the cadence of that? Is that something that we saw some of the organic growth in 2021 coming from any new product launches? Is that something that we'll see concentrated in any quarters coming up, or is this relatively smooth over the coming year? Sure. I would say in 2021, we certainly saw some impact from new product development, certainly one introduced. Now I'm thinking about mid-2020, with new features and new benefits for the customer, increased sales of those in a pretty meaningful way. We also have come out with a new incubator system, a cleaner that is gonna increase sales, and we're working on some new freezers that should be introduced in the middle of this year. I would say in general, you know, our business is not, you know, it's not like a pharmaceutical business where, you know, you get your phase III and MD&A approvals, and off you go, and you've got this whole, you know, this new, you know, entirely new revenue line. I think in general, the kinds of R&D that we've been doing is more, has had more incremental effect, meaningful, but more incremental effect. I will say that also, and I mentioned it briefly, that we're spending a lot of effort this year on the MDD to MDR conversion, which by nature has pretty significant involvement from our R&D teams in terms of developing, you know, the documentation and risk analyses and the various specifications and things for the products. We may see the point that you mentioned, James. We may see a little less in the way of new product developments in 2022 as the same resources are tied up with other activities. Okay. That's great color. Thank you so much, guys. I'll jump back in. See our next question comes from the line of Stefan Quenneville with Echelon Capital. Hi, guys. This is Stefan here. I stick to my question. I just wanted you to talk maybe a little bit more about the M&A landscape. I know you guys are always so vague about what's going on in the M&A pipeline, and I respect that. Obviously, there is some M&A in the sector. You know, nice multiple paid for Cook. At the same time, you know, the overall markets, you know, valuations have come off, at least in public markets. As you mentioned, there's a stronger U.S. dollar impact. I'm just wondering if those different dynamics are how they're impacting the M&A landscape and what you're seeing out there. Sure. In general, I would say, you know, this is a little bit repetitive to what we've said in the past, is we try not to answer this question too differently from time to time to inadvertently signaling anything. But I'll certainly can give you a little bit of the color on attitudes and valuations to the extent we can. Continuing a trend we've talked about in the past, we generally are seeing very good receptivity at the target level to having discussions with us. If we go back two, three or four years ago, you know, there was people were a lot less interested in having these discussions. That possibly means that there are others talking to them as well, that, you know, creates a competitive dynamic. Nevertheless, I think it's good to be able to have open discussions with targets. In terms of the numbers of targets that we have and the stages of development and the potential for, well, I wouldn't say necessarily the potential for closing, but the pipeline is as strong as it's ever been. There's lots of activity. In terms of valuations, even though, you know, you mentioned one particular deal and, there just aren't enough transactions in the M&A or certainly reported transactions in our particular sector, I think, to be able to, you know, do a lot of trend analysis in terms of this. Clearly, when we think about acquisitions, we've always tried to be a responsible buyer. As we look at today, we're clearly seeing all the issues you talked about. Rising interest rates is another one I would throw into the mix, because when we do an analysis, we certainly look at EBITDA multiples, but ultimately, we're also focused on a DCF model. As interest rates rise, then valuations, you know, it's just an inverse relationship to valuations. Sometimes that's a little hard to explain to a target, but I think they seem to understand that at other levels, which is some of the cash that they get in this case can go and earn them more. They can see that relationship pretty clearly. I would say that we have not yet, or I can't give you any concrete information that the valuation structure is changing or that people's attitudes are changing. I know that we take those into account, and we're certainly, you know, again, we try to be responsible and also reactive to, you know, the changing environment. Great. Thanks for that. Your next question comes from David Martin with Bloom Burton. Yeah, thanks for taking the follow-up. Was just wondering, large lab build-outs and workstations, those types of big contracts, are they trending the same way as the rest of your business, you know, rebounding from a slower period during the heat of the pandemic? Clearly in 2021, the last half of 2021, we saw a pretty meaningful increase in lab build-outs and workstations in the U.S. They tended to be a little bit smaller in terms of size, and that's hard to know, again, because you're talking about, you know, a handful of these a year, whether that's a trend or just that's the way it flowed out. For 2022, you know, again, we have a pipeline of these. As we get bigger, though, these can be, you know, they're always great. They just tend to be a little less impactful. You know, even a couple hundred thousand dollars of sales is, you know, it's always great to pick up, but it's, you know, it's just not gonna have as much, you know, meaningful impact on the top and the bottom line as, you know, at least in terms of aberrations as it once did. It's almost now. I would say that those have become our, you know, may very much, you know, just part of our standard business. How do you compete against the larger companies in that part of your business? Are you acknowledged as one of the leaders as far as the large lab build-outs, or would you say you're proportionally positioned to, you know, where you stand overall in the industry? Yeah. I would say it varies a little bit market by market and country by country. In some countries where we have a little less longer experience and footprint in direct sales, you know, I would say we're not quite as well positioned as we are in countries where we've been there for some time. In, let's say, Germany and in the U.S., clearly we are, you know, one of the a very small number of go-to providers of lab build-outs. We tend to win our fair share, I believe, maybe more than our fair share, based generally on the things that matter, which you know is sort of the part of it is table stakes, which is breadth of product line capability to you know deliver and install on time. You know the other somewhat you know intangible attributes, which would include quality of our consultative sales force, quality of our installations, service and support teams. You know we try to make a little more of a total cost of ownership pitch than a pure price pitch. We tend not to be the price leader, so it's a game we try not to play. We do see some others who compete much more on price, and we try to compete on product and service quality. Great. One last related question. If you went back to before you made the ZANDAIR acquisition, you've made, you know, including that, four acquisitions since then. What would you say before that your percent of third-party product was in these large lab build-outs, and what would you say the percent of third-party product is now? Yeah. I can tell you what it is now because we published that, as I said, in both our investor deck and in our AIF. It's right around 70%. I can tell you for the last couple of years, it's been right around 70%, give or take, you know, a percentage point or two or so. I'd have to really think back to before ZANDAIR exactly when was that. It was probably in a similar number, maybe a little bit lower. As you know, the Gynemed business has a significant amount of its products are third-party products. Again, I'd mentioned catheters and needles earlier that we don't, you know, we don't make ourselves, so we sell those. That was probably the one that moved the needle most in increasing third-party products. We've stabilized, and now we've been, you know, again, increasing it. Okay, great. Thanks. There are no additional questions in queue at this time. Mr. Wolf, your closing remarks, please. All right. Well, I would like to reiterate my thanks to all of our employees who've shown remarkable resilience and dedication to our business as well as our customers and our business partners, and obviously to our shareholders for the support they continue to show to our company. I look forward to talking to you all again on our next conference call event. Thank you very much. This concludes today's conference call. Thank you for participating. You may now disconnect.