Good afternoon, ladies and gentlemen. My name is Michelle, and I will be your conference operator today. At this time, I would like to welcome everyone to the Nanalysis third quarter 2022 conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star then the number one on your telephone keypad. If you would like to withdraw your request, please press star followed by the number two. I would now like to turn the call over to Mr. Matthew Selinger. Please go ahead, sir. Thank you, operator, and welcome everyone to Nanalysis Scientific's third quarter 2022 conference call. Before we begin, I would like to remind everyone that remarks and responses to your questions today will contain forward-looking statements that are based on current expectations of management. These assumptions involve inherent risks and uncertainties that could cause actual results to differ materially from our responses. Certain material factors and assumptions were considered and applied in making the forward-looking statements. These risk factors are included in our filings for the year ended December 31st, 2021. Forward-looking statements on this call may include, but are not limited to, statements and comments with respect to future growth of the company's business, the ability to graduate to a senior exchange, the company's acquisition strategy, the ability to develop future products and the possible associated results The company's actual performance and financial results in the future could differ materially from any estimates or projections of future performance implied by the forward-looking statements. The forward-looking statements made on this call speak only as of today and Nanalysis Scientific assumes no obligation to update any such forward-looking information as a result of new information, future events, or otherwise, except as expressly required by applicable law. For additional information, I do encourage everyone to review our public filings and press releases, which are posted on the SEDAR filing system at www.sedar, which is S-E-D-A-R.com. On the call with me today are Nanalysis Founder and CEO, Sean Krakiwsky, and Nanalysis Interim CFO, Randall McRae. With that, I would like to turn the call over to Nanalysis Interim CFO, Randall McRae. Randall. Thanks, Matthew. It's a pleasure to join and interact with everyone on the call today. I'm first going to dive into the financial results for the quarter ended September 30th, 2022, then move into a discussion of cash management during the rollout and scale up of our services business. With that said, I'll turn to the financial performance for the quarter. All amounts referenced are in Canadian dollars. I'm happy to report that for the three months ended September 30, 2022, the company reported consolidated revenue of CAD 6.878 million, an increase of CAD 3.542 million or 106% from the comparative period in 2021. This includes CAD 6.145 million in product sales and CAD 733,000 of service revenue related to airport security services. Gross margin on total sales was 43% for the three months ended September 30, 2022. This was the result of increased training costs of personnel for the CATSA airport security project, increased personnel and training in Nanalysis' manufacturing group to increase manufacturing capacity, an increase in cost due to worldwide supply chain constraints and inflation, as well as a specific project completed in the RS2D subsidiary that had lower than normal margins. Management expects that these lower gross margins are transitory and will improve as the CATSA airport security project continues to phase into full capacity, investments in manufacturing result in increased efficiencies, and sales levels increase. The company incurred a net loss of CAD 2.599 million for the third quarter, up from a net loss of CAD 857,000 in Q3 2021. The increase in net loss was driven by higher costs in G&A expenses, depreciation and amortization, sales and marketing, and stock-based compensation expense. These were driven in large part by the acquisitions of K'Prime and QUAD. The company had cash on hand of CAD 7.9 million, an undrawn credit facility of CAD 6.7 million, working capital of CAD 9.7 million, and undrawn government contribution funding of CAD 5 million as of September 30th, 2022. I'd like to take a moment here and discuss our working capital and cash management as we move into 2023. Our decrease in working capital is due to lower cash balances as the company is investing in new initiatives, primarily the airport security project. As we have previously discussed, we do expect to invest cash in the ramp-up period of this project and begin to turn positive cash flow for the airport security project in early 2023. We're not concerned about cash and while we're in a drawdown phase, we purposely decided to move more aggressively in the phase in to get to billing sooner. We've begun operations in Q4 on this project and will continue on our rollout plan, anticipating profitability on that project in the first half of 2023. Additional to our cash balances, we have a consolidated credit facility. Subsequent to the quarter on November 18, 2022, the company closed a credit line with a major Canadian bank, consolidating its existing operating facilities into a CAD 9 million operating line, allowing us to execute on our growth and expansion plans. Those of you who follow the company may also recall that back in March, we announced funding of CAD 5 million to expand manufacturing operations in global markets for Nuclear Magnetic Resonance products from the government of Canada. We've recently received our first CAD 1.5 million funding amounts from the Prairies Economic Development Canada Business Scale-up Program. With that being said, we're confident we have the necessary liquidity resources available to support all our research, development and project initiatives, including the airport security project. This strong financial base will be the foundation for Nanalysis's future growth. With that, I'd like to turn the call over to our Founder and CEO, Sean Krakiwsky. Thank you very much, Randall. On our last call, we spent a lot of time focusing on what I would call the Q2 speed bump in our sales organization, what led to it, and what we're doing to rectify the situation. On that call, we assured you that we had made remedies and that we were already seeing a return to our normal trajectory. We put out a business update press release last month to give you, our shareholders, assurance that we had returned to previous norms and that we are confident in our future growth across business segments. What I would like to do is go through the highlights of our five business segments, starting with our core benchtop NMR group. I'll touch on our recent acquisition of QUAD Systems and our high field NMR products. Move to K'Prime third-party equipment sales, provide more detail on our services business, including the CATSA project, and then talk about our medical imaging group. I'm very happy to report that our benchtop NMR business, including both a 100 MHz and 60 MHz products, have delivered strong results in terms of sales, shipped units, and average sales price. In this last quarter, we shipped a record number of 20 100 MHz units. Our revamped sales organization is executing well, and I expect an excellent fourth quarter in benchtop NMR sales. We are also working on several exciting benchtop NMR partnerships that I expect will drive broader adoption of our products, I hope to be able to talk more about those partnerships in the coming months. Now that we have accomplished our primary R&D and manufacturing objectives associated with our new 100 MHz product, we have started to implement these newfound gains into our established 60 MHz product, which I expect will allow us to increase performance and hence the list prices going forward. With regards to our recent acquisition of QUAD Systems in Switzerland, I'm pleased to convey that we have started generating significant revenue in Q3, that we have a very bright outlook for the revenue of that we're projecting for Q4, and we're starting to get excellent visibility on the material revenue that we'll generate for our company in 2023. With regards to K'Prime and the third-party equipment sales business, a third-party equipment sales business which is highly synergistic with our own benchtop NMR and future high field NMR businesses, by the way, knocking on the same doors of customers that we would with those products, is steady and showing signs of slow but steady growth going forward. With regards to our security services business that K'Prime is also managing, we've seen some really good progress with regards to the CATSA implementation, namely, real coverage of real airports thus far. We have started to generate revenue from that particular customer, and we expect to be as Randall mentioned, cash flow positive on that project by the first quarter of 2023. All of you know that, we are incubating a very exciting medical imaging group, and in fact it's part of our vision to disrupt the MRI space in the not too distant future. I'm happy to report that we're involved in several exciting projects there. We previously announced a couple of significant project wins. The more recent one is, turned out to be a CAD 1.3 million, which is a little bit higher than previously stated, contract with a university in France, which we're very excited about, that includes our proprietary electronics and software as well as some third-party modules that we're acquiring with partners. In closing, again, I'm very happy to report our return to growth. Speed bumps do occur in growing businesses and we did learn a lot from that experience, and I believe we're the wiser because of it. We continue to look forward, outward, and inward to see what we can do to improve and prepare for future growth. I'm very confident in the changes and improvements that we have made in our ability to adapt over time. We continue to stay the course as we progress towards our vision of building a fully vertically integrated global scientific instrumentation company, serving customers in the security, pharma, biotech, food, energy, advanced materials, petrochemicals, healthcare, and education markets with imaging and detection products and services. We will continue to expand product line, direct sales groups, services, and channel management capabilities globally as well as strengthen technology partnerships. As we move forward, we will continue to advance our technology differentiation capabilities while keeping an eye on supply chain risk mitigation and ultimately creating value for our shareholders and stakeholders. Thank you very much. Operator, I would now like to open up the call for questions. Thank you, sir. Ladies and gentlemen, we will now begin the question-and-answer session. If you would like to ask a question, please press star followed by one on your telephone keypad. If your question has been answered and you would like to withdraw from the queue, please press star followed by two. If you are using a speakerphone, please lift the handset before entering any keys. Your first question will come from Stefan Quenneville of Echelon Capital Markets. Please go ahead. Hi, guys. Congrats on the quarter, and thanks for taking my questions. My first question, you know, given, let's say, the lumpy revenue from the NMR business you had sort of last quarter and this quarter, can you. I know you've sort of shied away from providing details on backlog and that sort of thing for competitive reasons. Would you be maybe for this one occasion or maybe this one last occasion, be willing to talk a bit about the backlog, either precisely or at least directionally, at the close of the quarter and how Q4 is shaping up? Hi, Stefan. This is Sean, the CEO. Thanks very much for joining our call today. Yeah. Again, you know, I have stated that it's an objective of ours to operate our benchtop NMR business, for example, without a backlog. In other words, you know, when we get a purchase order, we're in a position to ship the product out right away. That's better for our cash flow, and it's also a competitive advantage over our main competitor in particular. That's kinda where we're going. I don't really wanna give a breakdown on things, but I don't mind saying that today our current sales backlog is well over CAD 3 million across our business. You know, in terms of how long we maintain backlogs, it's quite short, and we also have a very strong sales pipeline. You know, in terms of, fourth quarter and beyond, I'm very confident that you're gonna see continued growth. Great. Maybe I'll just sort of I have a couple questions. Maybe I'll just rattle them off one at a time. Just in terms of your gross margin this quarter, if you backed out the CATSA contract, could you give us a sense of where gross margin would have been in a kind of, you know, x the obvious investment you're making in that contract, just sort of from a kind of trend perspective? You know, I'll make some comments on that, you know, from the, from the CEO's perspective and from an engineer's perspective, and then I'll let Randall add some color. You know, we have seen some gross margin erosion in our benchtop NMR business due to what I believe are temporary higher costs of components, you know, due to the, you know, well-documented supply chain challenges. You know, on the, on the benchtop NMR side, our gross margins across the board are roughly around 55%. And so we've... The way I view our gross margins right now, is, first of all, it's very complicated. And I kinda feel like we're in a period of flux, where... Again, I'm just giving you the honest perspective of an engineer, right, not an accountant. Is I feel like things like accounting treatment and transitory phenomena are kind of heavily weighted right now in terms of describing our gross margins. I mean, we have a fabulous team of accountants as our CFO and our audit committee and of course, our auditors that work with us on the interim financials. They're doing a great job, and I have full trust in them. But their perspective on where our gross margins are not an engineering perspective. When I look at our cost of goods sold and our gross margins, let's say, on a per unit basis, you know, associated with actual revenue, I really like what I see. Right now, our gross margins include things like, you know, training for the CATSA project that aren't yet associated with CAD 1 of revenue. That's kinda what I mean by, you know, things like accounting treatments and transitory phenomena are heavily impacting our gross margins right now. From my perspective, I believe we're gonna sort of be out of this period of flux and complexity with regards to our gross margins probably in the middle of 2023. I'm very confident you're gonna see a return to the really strong kind of gross margins that you've seen from us in the past. Randall, do you have anything to add to that? No, I think that covers it well. Stefan, thanks for the question. You know, I'd like to highlight as well that, you know, I would call your attention to the financials where we've broken out those services and product sales just to highlight for you the different components of our business that will have different margins and say that, you know, we would expect an increase in those margins once CATSA rolls up. I don't wanna get into specific numbers just from a competitive perspective here on some of these other projects. We'll see it tick up as we get rolling. Great. I just have two more, guys if you'll allow. You mentioned sort of very quickly in passing product improvements that were particularly beneficial for your 60 MHz system and may allow you to position the product differently going forward. You know, in talking to your some of your engineers when I was there a couple of months ago, I got a sense that, you know, these are pretty meaningful improvements. I mean, I also, I guess, for competitive reasons, maybe talk about them in qualitative terms and talk about what it might mean in terms of your ability to take price going forward. I know that you've, you know, for your backlog systems, you kept prices where they were despite inflation, but maybe even directionally what that might mean for pricing going forward. Yeah, absolutely happy to talk about that, Stefan. So, you know, part of my comment there was just real genuine enthusiasm for what we accomplished on the 100 MHz side. Just absolutely ecstatic about what we achieved there. Granted, yeah, it took longer than I would've liked, but sometimes, you know, difficult challenges take a little bit more time. We are gonna be retrofitting those gains back into our 60 MHz product. Part of that, and I didn't really link the two in my formal statement, but I'll link them now. A part of that activity is linked with some of these partnerships that I'm talking about. You know, part of our business strategy is to work with partners that have a long history of being deep in certain vertical markets. Vertical markets like the food and beverage industries, for example. We're gonna take the gains that we've made on the 100 MHz, we're gonna put that back into our 60 MHz, sort of unify the tech platform. That is gonna be correlated with some of these exciting, you know, vertical market partnerships that we're working on. To drive up sales, but also to allow us to increase prices with our own product that we sell direct. In the magnetic resonance world, you know, customers are always clamoring for more performance. If you can deliver more performance, you can increase prices. You know. Then, again, my statements about gross margins before. You know, we think that as our business grows, we can get back to the gross margins that we experienced in the past, both in terms of increasing prices, but also taking some aggressive actions on cost reduction side as well, now that we feel we're on the other side of some of these supply chain challenges we've faced. Great. My last question, also I think it's sort of important given the sort of, what occurred last quarter. In terms of your sales force realignment now, you know, this quarter showed that obviously, you know, the tweaks you made are working. Can you provide just a little bit more color on how it's going, whether you're touching sort of, new clients or parts of the market where you weren't really before, just anything from that perspective to maybe help people understand how that's going? For sure. Yeah. Really happy about the changes that we've made. Think they're the best thing for the long-term health of our sales organization. Essentially, it's implementing a, you know, a large company model of how to run sales and distribution that K'Prime learned over 20 years working closely with Agilent. Yeah. You know, it's a hybrid model that includes, you know, more salespeople that we had before. It also includes third-party partners that, you know, are turning over a lot of rocks. Basically, we went from four people in the United States, you know, trying to generate purchase orders to now the team is well over 30 people. The division of labor in terms of the different parts of the sales cycle have been modified as well. Very happy with it and confident that it's gonna generate growth here in the next. Well, it already has contributed, but I really think it's gonna take our growth to the next level in 2023. Yeah, because there's more boots on the ground and because we're leveraging relationships of partners that have been selling scientific instrumentation for over 30 years, yes, we are making contact with new customers, more customers, and increasing our deal flow. Great. Thanks for all the color. Sorry for monopolizing the call. I'll get back in queue. Thanks. Thanks, Stefan. It was a pleasure. Your next question comes from Bob McWhirter of Selective Asset Management. Please go ahead. Thank you. Can you tell me whether Q3 sales of CAD 6.9 million up 106% year-over-year, how much of that came from organic versus the acquisitions? Hi, Bob. Great to hear from you. Yeah. The sort of ballpark number is, and I'm not gonna provide the, you know, a lot of detail here. Ballpark number, which is kind of the thing that I've always said and will continue in the future, is 70% is associated with organic and, you know, roughly 30% would be associated with the new acquisitions. That's a ballpark number. You know, that trend's gonna continue going forward. Okay. You talked about getting the CAD 5 million interest-free loan to be able to buy some new equipment. One of them is a five-axis machining center, as well as the electrical discharge machine. Talk about, one, what they cost, and two, what kind of efficiencies you might get. In other words, you end up saying, "We no longer have to outsource some of our work." What do you hope to achieve with the investment in the machinery? Thanks. I'll let Randall add some color, but I'll make some initial statements on that. Yeah, one of the machines, the wire EDM machine is associated with reducing our COGS. It allows us to insource some key components that we use to outsource and improve quality as well, and turnaround time and our ability to schedule properly. The other one has a little bit of an R&D component as well as an absolute manufacturing component, and that's the five-axis machining center. It actually delivered some significant performance gains on our 100 MHz product, which again, we are gonna put back into our 60 MHz product. You know, some of these, precision components that are in our instrument, have tolerances of microns, you know, so that's not very many layers of atoms if you're, if you're able to do the math. So that's very important to us. The ability to machine these parts is part of that. That's what the five-axis machining center is all about. I'll let Randall talk about the costs associated with those machines. Hey, Bob. Randy here. You know, I'll call your attention to our actually our second quarter discussion in the MD&A. We invested about CAD 1.3 million in various property, plant, and equipment, and that includes those two machines as well as some other items in our manufacturing process. What I will say to that I'm quite optimistic about is, seeing as Sean referred to those gains up in our 100 MHz product and then, you know, putting them into our 60 MHz as well, I think the payback period on this investment is gonna be quite short. Okay. A ballpark description as to the improvement that you expect in the 60 MHz device is meaningful of 15% or better. Any kind of guesses as to how much more oomph you might get? Yeah. I think I don't mind going out on a limb and saying that, you know, we're targeting sort of 30%-40% improvement, and, you know, on the key sort of flagship performance metrics. It will also allow us to offer some capabilities that we don't currently have at all right now. You know, I think, yeah, confident in giving those numbers. Okay. Assuming that you would end up taking at least a third of that, it implies that you might end up being able to increase your price by 10%-15% to end up saying, "Okay, to the clients, it's gonna be more expensive, but you're gonna get a pretty good deal on the kind of increased cost." Right. Turning to the one-time training cost for both the manufacturing staff, as well as the CATSA crew, any guess or sorry, can you give a number that says, "Okay, that was CAD 250,000 in the quarter," whatever the number was? Randall, would you like to? You know, it's not a number that I think I can pull out directly, Bob. In terms of manufacturing when we're training our team, right, I would view it more as increasing efficiency with new members of our team. Training and investments made there will increase their efficiency as we go forward. On the CATSA piece, it would be in the order of, you know, kind of low six figures that we've invested so far on training. I would expect that to continue to go forward as we roll out. There's a significant amount of complex equipment that we deal with, there's a lot of work that goes into getting all of our team fully up to speed. You talked about the CAD 9 million consolidated line of credit. Can you talk about how much has been drawn down of that line of credit? As of today, I don't have the numbers in front of me. Well, I have to say we have the CAD 2 million that we had at Q3. We paid those lines out as part of the consolidation process. As I referred to in the financials, we did draw down a little bit more to complete the acquisition of K'Prime and pay out that working capital amount. It's drawn down, you know. The net cash position, I would have to pull for you, Bob. I don't have that off the top of my fingers right now in terms of drawdown plus net cash, right, or net it off against it. Okay. Then turning to Sean's description of the four-person sales crew blossomed to become 30 people. If you end up saying we've added net 26 people, even at a modest CAD 25,000 draw, which I'm sure is a very conservative estimate, that would add approximately CAD 650,000 to your expenses. Can you give some insights related to the staff cost increase of going from four- 30? Yeah. Roughly 20 of those are commission-only partners. They don't get paid until we ship a product, so they're not adding to our fixed costs. Also, I'd like to say that part of the revamped sales organization is a total change of compensation structure. Our new VP of Sales has managed to increase the headcount on our team, but not dramatically increased costs because of the change in comp structure relative to the team that we had before. It's not quite the... You know, the math isn't, you know, 30 people times average salary. It's different than that. Okay. I think what I'm hearing is the four base staff, salespeople have gone to 10, and you've moved to a larger success-based compensation model, similar to what the 20 contractors are as well, to all kind of balance out. Okay. Yeah. That's correct. A couple of people have moved into the benchtop NMR portfolio from the K'Prime team that were already there. Okay. Can you remind me as to the size and term of the CATSA contract? Six-year contract, CAD 160 million. The first six - nine months are phase-in. I think of it practically speaking as 5.5 years and CAD 160 million. If you divide CAD 160 million by 5.5, that's CAD 29 million per year. It's also extremely likely that the contract will be renewed for an additional five years, which would make it a 10.5-year contract. But the signed contract that exists now is 5.5 years for CAD 160 million. Can you give some color as to the actual number of airports that you're involved with? Right now, it's a handful. We've got coverage in Calgary and satellite airports such as Medicine Hat, Lethbridge, Cranbrook, for those of you who know the West. We're also in Edmonton and the Vancouver Airport as well right now, and we're rapidly moving towards other airports in BC. We're going to take a little bit of a break in terms of actually being able to physically get into the airports for the holiday season. After commencing again on January 2nd, we'll be going full bore again on getting we believe full coverage in all 81 airports by the end of March. Great. That does it for me for the moment. Thank you very much. Thanks, Bob. It was a pleasure. Your next question comes from Brandon Austin of Venator Capital Management. Please go ahead. Hey, guys. Just a couple follow-ups here, from largely, from Bob's questions. You said that you expect to have all the airports rolled out by March? Yes. Okay. would that mean that by Q2, Q3, that contract should be running about CAD 7 million a quarter, just 30 divided by four or whatever? Um... Go ahead, Sean. Yeah. We won't be at those kind of billing levels by, you know, by Q2 of 2023. The reason for that is, there's different categories of revenue from the contract. Some of those categories we have, like really it's deterministic visibility on. Then there's some other categories of revenue that, we don't, have full visibility on. I expect to be billing at sort of the maximum rate, more towards the end of the year than the middle of the year. I think, by the middle of the year, I think a reasonable expectation for monthly billing rate is like CAD 2 million a month. Maybe like CAD 5 million-CAD 6 million per quarter. In terms of getting to that, you know, CAD 29 million per year rate, I think that's gonna take more towards the end of the year to get to. Okay. That's additive to K'Prime's current revenue run rate of like CAD 1.5 million? That's correct. Yes. Yes, it is. Yes, it is. If you meant CAD 1.5 million per quarter, yes, it is. Okay. If I'm using like 1.5 then, you know, sort of Q2, Q3, K'Prime as a division should be doing about CAD six and a half million and finishing in sort of the CAD 9 million-CAD 10 million range by the end of the year. Is that fair ballpark? Ballpark, yes. Okay. Okay. Just remind me. I remember when you guys first signed this contract, you guys seemed to suggest this was a fairly decent EBITDA margin, contribution for you guys. Yeah, absolutely. You know, you know, we're basing our planning around the idea to do 15%-20% EBITDA margins. On the project, including overhead. As we've gotten further and further into the contract, we now have reasons to believe that it's more profitable than that, but I'm not prepared to sort of quantify it for you at this time. As we get a better understanding of how profitable it's gonna be, we will start to quantify it in later quarters. Okay. It sounds like, if we're assuming this is gonna be a profitable contract, you guys should be profitable by mid-next year, or do you have more spending plans? I think I understand the granularity of your question. The answer is, we expect to be profitable on the CATSA contract by March. Or cash flow positive, I guess I should, prefer to say. Yeah, it is, it is a target of mine to be profitable as a, as a business, certainly on an EBITDA basis, by middle of 2023. Yes, absolutely. Randall, do you have any more color on that? Yeah. I would just like to call, you know, call everybody's attention to our income and loss before other items. You can see for the three months ended September 30th, we're not far off of that number already and, you know, there's a great deal of our cost below that line that's non-cash. I think from an EBITDA perspective, we're already getting close, and I only see that going up in the future with the addition of CATSA at its full run rate. Okay. Okay, if I'm looking at, I guess Bob was asking, you know, what your growth rate was ex acquisition. Your Nanalysis revenue segmentation, though, that's pure, right? Like, there's no acquisitions in there, right? There is- By that, if you... Sorry, go ahead. No, no. Please go ahead, Sean. No, actually, Randall, if he's referring to, a specific, section of the document. I'll grab it. Okay. I prefer if you answered. Sounds good. It's, it's almost all pure, Brandon, to answer that. We've got, in the quarter ended about, little over CAD 300,000 of QUAD revenue in that Nanalysis segment right now at, in our NMR segment. I would back that out if you're doing the calculation. You know, to Sean's earlier comment about 70/30, that's about right on the numbers. Sorry, there's CAD 300,000 of the CAD 4.1 million? Correct. Okay, fair enough. That would still be pretty healthy over the CAD 2.2 million you guys reported last year. I guess on a year-to-date basis, Nanalysis is running about CAD 10 million for the nine months versus CAD 7 million last year. Does that sound about right? That's about right. Yep. Okay. Okay. Okay, so that's good. On the... I mean, you guys were a little cagey there on the QUAD Systems, you know, in terms of the progress they're making towards commercial, you know, revenue. I know these are big ticket items, so it's tough to really give any kind of definitive forecast. But is the product at this point ready for prime time, or are we still, you know, a couple quarters away from that? The product is ready for prime time now. It's only, four out of the five modules which are ready for prime time. You can sell those four out of five modules independent of the fifth. The fifth is the magnet. You know, we did CAD 300,000 in revenue in Q3. I believe we have a great shot at doing CAD 1 million in revenue in Q4, then we should be off to the races in 2023 with the full five modules. We did have an expectation that by now we would be selling all five modules. It's been a classic R&D delay with one of our partners that has caused the magnet part of this system to not be generating revenue yet. The other parts will be doing that in Q4, and that's associated with our target of CAD 1 million in revenue. Okay. Your inventories on your balance sheet, there's a lot of raw material inventory there. Is that just a function of shipments coming in late, or how do I? Cause, I mean, it does seem that there's a decent source of cash there in converting those inventories into sales. Just sort of. Yeah. Absolutely. I mean, we, you know, before the pandemic, we were, you know, we were striving for just-in-time manufacturing, and we had all kinds of, you know, KPIs associated with, you know, inventory turn that we wanted to reduce and so on. When we got into the middle of supply chain challenges, right from the top of our board of directors, to be honest, there was a mandate given to management to go the other way with that and start increasing inventory just so we didn't get caught, you know, off guard and with an inability to ship instruments. We're sort of, you know, tempering that a little bit now as we see easing on the supply chain challenges, but that's what that is. It's all current and good inventory. You know, I don't anticipate any or I know there's not gonna be any material write-downs associated with that or anything. You're right, it is, you know, it is gonna be converted into cash and it's being converted into cash right now. You know, I anticipate having a just absolutely fabulous fourth quarter. Okay. You guys said you guys shipped 21 100 MHz units in the quarter. How were 60 MHz sales directionally? We had CAD 22 in the quarter. Y ou know, we continue to see strong average selling prices across the product lines. We're, yeah, we see, you know, strong numbers across the board in benchtop NMR and continuing into the fourth quarter. Are we expecting, can we expect benchtop, and I can't remember seasonality, but is that number, is that Nanalysis revenue number going to continue to increase, or is there seasonality I should be accounting for? Our seasonality is positive. In Q4. Typically. Historically, that's one of our better quarters. I, you know, that's certainly where we're aiming with regards to benchtop revenue. Oh, okay. Okay. Okay, great. Thanks, guys. Thanks very much, Brandon. At this time, there are no further questions. I will turn the conference back to Sean Krakiwsky for any closing remarks. Thanks very much, operator, and thanks very much to everyone who participated on the call today. I look forward to talking with many of you in the not too distant future. Have a wonderful afternoon and evening. Ladies and gentlemen, this does conclude your conference call for this evening. We would like to thank everybody for participating and ask you to kindly disconnect your line.