Please stand by. Excuse me. Good day, and welcome to the Heska Corporation third quarter 2022 conference call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Jon Aagaard, Director, Investor Relations. Please go ahead, sir. Thank you, and good morning, everyone. Welcome to Heska Corporation's earnings call for the third quarter of 2022. As a reminder, today's conference is being recorded. I am Jon Aagaard, Head of Investor Relations at Heska, and with us this morning, we have Kevin Wilson, Heska's Chief Executive Officer and President, and Catherine Grassman, Heska's Chief Financial Officer. Mr. Wilson and Ms. Grassman will provide details surrounding the results reported. We will open the call to questions. Prior to discussing Heska's results. Before I turn the call over to Kevin, I would like to remind you that during the course of this call, we may make certain forward-looking statements regarding future events or future financial performance of the company. We need to caution you that any such forward-looking statements and opinions are based on our current beliefs and expectations and involve known and unknown risks and uncertainties, which may cause actual results and performance to be materially different from that expressed or implied by those forward-looking statements. Factors that could cause or contribute to such differences are detailed in writing in this morning's earnings release, Heska Corporation's annual and quarterly filings with the SEC, and elsewhere. Any forward-looking statements speak only as of the time they are made, Heska does not intend and specifically disclaims any obligation or intention to update any forward-looking statements to reflect events that occur after the time such statement was made. Also, during this call, we will be discussing certain financial measures not prepared in accordance with generally accepted accounting principles, or GAAP. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures is provided in our earnings release, which may also be found by visiting the investor relations section of our website. In reviewing our third quarter 2022 results, please note all references to growth refer to growth compared to the equivalent period in 2021, unless otherwise noted. With that being said, it is now my pleasure to turn the call over to Kevin Wilson, Heska's CEO and President. Kevin? Hey, thanks, Jon. Good morning, everyone. Before I begin, I'd like to encourage participants to review this morning's release. I think you'll find it detailed and helpful, and I'll try to refrain from unnecessarily reading it to you now. As usual, Catherine will cover the financial results from the quarter, and I'll take some time now to share a few of my own thoughts. To begin, there's a lot of great performance in last quarter's results, especially in profitability year-over-year. North America POC lab consumables were up 11.4%, gross margins on a consolidated basis up 180 basis points, GAAP EPS up 78.9%, and Adjusted EBITDA up 12.3% are all fantastic results, especially in light of some softness in reported revenue. While it's always great to beat and beat in today's macro environment and in Heska's specific progress, overall, I'm pleased, and I congratulate our team on controlling so strongly the things within their control and mitigating those things that are less controllable. We are a much, much stronger and better-positioned company today than we were in January. As we dive in further, I think it's helpful to frame the period's impacts into 2 categories. The first being the macro drivers, or what we have less control over, and the second being Heska specific, or what we have more control over. The macro drivers are widely known. Foreign exchange is a big one. Inflation, interest rates, pandemic revenge travel, labor constraints, supply chain, energy inflation, and vet visit trends round out the list. Heska is impacted by each, and in my opinion, done an admirable job mitigating each. The third quarter for Heska fits squarely into what we are seeing and hearing within the industry, and this is reflected in our guide for the whole year result. I won't drone on about any of these broadly felt trends here, but will be happy to answer questions or provide more commentary around those of interest to participants in the Q&A. Specific to Heska and the things we can and should control, we have done well in many but can do better. So far in 2022, we were slower than intended in launching and accelerating traction for things like Rapids internationally, Heartworm domestically, and Element AIM into Europe and into North America corporate contracts as quickly as intended and in time to make a financial impact on 2022 that could overcome the accumulated macro headwinds. That's the demerit for today, and it's reflected in our guide for the whole year result. The good news is that the calendar is now our friend entering 2023 as we lap these demerits and they turn into positive contributors. Rapids are in our warehouse and ready to go with a full menu internationally and Heartworm approved by regulators for sale domestically. Element AIM is in our international warehouses. Sales and marketing materials and teams in each core country are ready, and orders are being placed and filled. In North America, as of November, after a longer process than anticipated, Element AIM is now authorized for hospital selection and installation in nearly all of our corporate contracts to serve good demand rising up from the hospital level from some of our largest customers. Chief medical officers are convinced, performance has been very well received, our CE seminars are extraordinarily well attended, our pipeline is great, and placements and utilization are growing regularly and consistently. Pointing to Element AIM being a solid, differentiating, and growing success that we see strongly contributing to our financial and portfolio performance for many, many years. To the extent we are doing a forward-looking probability exercise, these 2022 delays are now all set to reliably flip into strong reported and comparable contributors in 2023. Add to these, the growth that we expect from 2023 launches of our new cloud-based PIMS and our exclusive Nu.Q Vet Cancer Screening, all supported by what we anticipate to be more favorable trends and prior year comparables, and our line of sight for 2023 growth becomes clearer and confident. The timing is good. For nearly 5 years, we have planned and publicly communicated that Heska was targeting 2023 to transition from our 5-year build phase to our 5-year win at scale and win at innovation phase. We have assembled an amazing and very unique asset. The time is ripe, and we are ready to go. With that, I'll turn the call over to Catherine to detail the quarter before we move into our Q&A time. Catherine? Thanks, Kevin, and good morning, everyone. I will take you through the Q3 performance as well as how we see 2022 wrapping up with 7 weeks to go. We reported total revenue of $61.5 million, growth of 2.1% and 7.1% in constant currency. Our North America segment revenue was $40.3 million for the Q3, which reflects growth of 6.7%, primarily driven by POC lab consumables growth of 11.4%. Our consumable growth included increased utilization of newer product launches from investments in innovation such as Element AIM and telecytology, as well as pricing gains from our annual subscriptions price adjustments to the greater of 4% or CPI, which occur throughout the year based on contractual agreement dates. POC imaging drove about 3.4% growth on a very high comparable period. We also saw growth of 24.3% within our PVD business, which reflects timing of Tri-Heart shipments as compared to the prior year period. Our international segment reported quarterly revenue of $21.2 million, a decline of 5.7%. This represented growth of 7.3% on a constant currency basis, as foreign exchange was a significant headwind in the quarter. Contributing to the growth is our new VetZ presence in the practice information management software market, in addition to continued transition of our customers to the reset subscription program within POC lab. The macro environment in the European region impacted vet visits and consumer spending, coupled with our purposeful transitioning of existing customers to subscription program in which we share price discounts in exchange for longer term contracts and other benefits, resulted in a decline in sales of consumables of approximately 2.7% on a constant currency basis. Consolidated gross margin expanded 180 basis points to 43.7%. The North America segment delivered gross margin of 46.5%, an approximate 50 basis point decline due to product mix. International segment gross margin was 38.4%, an improvement of 512 basis points. Product rationalization from the aforementioned strategy of transitioning existing customers to long-term POC lab subscriptions drove margin expansion on consumables. VetZ software sales and services also favorably impacted gross margin. Total operating expenses were $27.5 million, roughly in line with the prior year. Adjusted EBITDA was $6.3 million or an Adjusted EBITDA margin of 10.3%, a 90 basis point reported improvement or 50 basis points in constant currency. This was driven by improved gross margin gains, partially offset by increased investment in recent acquisitions for the development of new technologies and products. We had a loss of $0.04 per share in the Q3. Adjusted earnings per share was $0.41, an increase of $0.21 over the prior year period. Our balance sheet is secure with cash of $161.1 million. Consistent with our stated strategy, we continue to actively evaluate capital deployment opportunities and have committed $25 million in cash as part of the acquisition consideration of MBio, which we announced in September. As we wrap up 2022, we expect continued headwinds from foreign exchange, international economic uncertainties impacting short and long-term capital decisions, as well as price sensitivity and consumer spend. Delayed commercial success from our trūRapid launch, which missed the 2022 selling window and will not be recaptured this year, will contribute in 2023. Pressure on labor, inflation, and financing for new capital equipment placements and training is expected to affect growth of imaging devices including digital radiography, ultrasound, Element AIM, and HeskaView telecytology in the Q4 of this year. We have also experienced supply chain and forecast changes within our contract manufactured products impacting 2022. With these factors in mind, we believe it is prudent to expect consolidated revenue to be roughly in line with the prior year reported revenue, which as we have noted, reflected historic pandemic-related growth for the company. This revenue outlook represents around 5% constant currency growth. North America consumable growth of 8%-10% is expected, which includes net subscriber gains in 2022. International consumable sales, as reported, will decline approximately 12% due to foreign exchange, but remain in line with prior year excluding currency impact. Profitability expectations remain largely unchanged in that we expect to gain 100 to 200 basis points on gross margin. An Adjusted EBITDA margin of approximately 11% as we continue investment in planned product launches to drive 2023 and beyond, when we have been targeting for some time to transition from our five-year build plan to our five-year win at scale and win at innovation plan. With that, we would like to open the call for your questions. Operator? Thank you. If you would like to ask a question, please signal by pressing star one on your telephone keypad. If you are using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. Again, press star one to ask a question. We will pause for just a brief moment to allow everyone an opportunity to signal for questions. We will take our first question from Chris Schott with J.P. Morgan. Great. Thanks so much for the questions. I guess the first one is just, I was looking for a little bit more color in terms of what changed from the 2Q call until today, because it seems like some of the challenges you have been facing in the business, I think you have articulated throughout the year, but they did seem like they get more acute, I guess, over the last few months. Maybe specifically U.S., I think you are talking about visits starting to recover, but the guidance is coming down a bit. Help me there a bit. Then Europe, it seems like a little bit more dramatic pivot in growth rates. Also maybe just elaborate on the trends you are seeing there, and then just have one follow-up after that. Yeah, Chris, I'll start. It's Kevin. On the Q2 call, we weren't seeing the things in our numbers quite as much. I think Europe has come in a little bit worse. I think if you look back at the news cycle over the last three months, certainly with Ukraine, we hear energy inflation. We have examples where winter heating costs double, triple. I think if you pull EUR 1,000 or more out of a monthly budget for a German family, I think that causes some potential caution. Certainly causes caution also in the veterinarians. I don't think it's a new trend, it's just that it showed up in our numbers more, and we think it would be prudent to just extrapolate that going through the fourth quarter as well. Okay. I think I answered the question. In terms of U.S. veterinary visits, I think we're seeing the same thing that everybody else is seeing. It's gone from down 4% in visits year-over-year, to 3%, to 2%, 2.5%. I'm just using broad numbers. Everybody's within 10 basis points, 20 basis points of each other from what we're hearing. It's a trend, but it doesn't show up in your numbers instantly. We could be positively surprised that maybe that trend continues and you get closer to a year-over-year, maybe you get down into the 1s, if that trend continues, but maybe you don't. With 6, 7 weeks left in the quarter, we just think it's prudent to just say, "The environment is what it is. We're seeing it in our numbers, let's go and extrapolate that through the end of the year and make sure that we're ready for year-over-year 2023 to get back to growth. Okay. Just one follow-up and then one additional. I guess the follow-up was just, given the macro environment in Europe, does it make sense at any point to either pull back or slow a bit the things like Element AIM? Is it just the right environment, I guess, to be launching a new product? Would just love your thoughts there. The second one is, I know you're not updating 2023 guidance right now, but just maybe qualitatively, can you talk about how you're thinking about those targets in light of the environment we're seeing? I guess, do you expect enough of this to rebound next year that those targets still make sense? Do we need to maybe rethink those a bit, just given what's happening, particularly in Europe? I think it's prudent to rethink 2023 numbers as well. We do think that most of these trends moderate. Again, I'm not a currency speculator, so Forex obviously is a huge one. I don't see the currency moving another 15%-20% off of where we are today. I don't see interest rates having the same velocity and amplitude of moves and all those kinds of things. I think it's prudent to look at it. Offsetting that are some new products that we think will contribute for next year that really weren't in our original 2023 multi-year guide. There are going to be puts and takes there. We do think 2023 is a more positive environment. In terms of launching Element AIM into Europe, no, there are still plenty of places, plenty of pockets, and plenty of confident, well-performing businesses in Europe. It's not like everything is shutting down. I think we're having good response on Element AIM. Candidly, our execution was a little bit slower and exacerbated by some of these concerns that we pointed out. We had slower execution getting Element AIM internationalized in terms of languages, in terms of marketing materials in different languages, installation, training materials, training videos, those types of things. We have to own some of that. Some of that was execution and some of that's economy. I'm not trying to blame the whole change in 2022 on economy. Some of that is execution. I think we've got it right now. Just took an extra month or two to get it right, and unfortunately, you can't get those month or two back in terms of making a contribution in 2022, but they will contribute in 2023 now that we've got them right. Okay. Thank you so much. You're welcome. Thank you. Next, we'll move on to David Westenberg with Piper Sandler. Hi, guys. Thanks for taking the question. Sorry if there's any cutout. I am calling internationally right now. I just wanted to touch on that European point. I definitely appreciate the structural issues in Europe, just from a fundamental macro standpoint. We're all hearing it across the different companies. How can we feel comfortable that you continue to have a structural sound strategy there, that there's nothing maybe Heska specific, and if there's anything qualitatively you can point to or even quantitatively. I did see instruments did do better than expected on an organic basis versus a recorded basis. Does that put some of that evidence that you really are executing there, and it really is just a matter of the macro just improving? Yeah. I look at broad-based. If you see broad-based slowdown, not executional, I think you have to believe that, right? The teams didn't get up 30 days later and just forget how to do their job 5% or 10% less well. Right? I think that's real. There's a lot of noise, obviously, with Forex, and everybody can do math, so I'm not going to point to that too much, but it's real. Interest rates are real. Those affect ability for people to buy things like ultrasounds, digital X-ray machines, kind of capital investments. Again, I don't think they're Heska and skill specific. I would point out, too, that, I'm going to use broad numbers, but let's just say our international business, 35%. We're concentrated in Germany. A bigger portion of our international is concentrated in Germany. I do think the Ukraine effect, certainly the gas inflation and insecurities around that, are affecting German society more than, say, Spain, France, or some of the other countries. I do think they've secured enough gas, and we're hearing some positives from our German board member, and some other touch points. I really think we're about in line with what you're seeing economically. Probably a little bit more specific to Heska because we're more concentrated in Germany, which has had a more difficult economic news cycle. Got it. Okay. Let's turn our attention back to the U.S. Just a two-parter, then I'll kind of move on there. How do we feel comfortable about market share? Should we continue to look at that consumables growth number and see that 11% and be excited about that and that you continue to be a market share gainer? Then as you're layering on Element AIM, there was a lot of commentary about the slowness and that affecting your guidance. Is Element AIM in the U.S. operating as expected? I think I'm kind of hogging questions by doing this two-parter, I'll stop there. With Element AIM, we're not disappointed. We're not disappointed with the trends. We're not disappointed with demand. We're a little bit disappointed with our speed of execution. I would point to a couple of touch points on Element AIM. Clinically, it's performing wonderfully. Internally, I think our teams would say it's probably the best product launch in terms of performance that we've done. When you have a product that's performing well, remember, we invented it, designed it, manufactured it, deployed it, consumables, supply chain, all of these things, I think it's gone extraordinarily well. Customers are thrilled with it. Where could we have done better in 2022? We have a strength in corporate accounts, we had demand from hospitals and corporate accounts, we didn't get out ahead of contracting in corporate accounts. What I mean by that is when a hospital that's owned by a large corporation says, "I really want one of these new Element AIMs," it's not on their contract and it's not in their system, we have to take a step back and we have to go through their process. We have to convince now the Chief Medical Officer to sign off on it. Now finance has to add the SKUs. Legal has to review the addition, it has to get pushed down to the regional managers for approval, then the hospitals can be serviced. We didn't really accomplish that. Roughly 90% of our corporates are now under contract with Element AIM added so that their hospital demand can be served and installed. Again, we probably lost a couple, two, three months. That process has taken a little bit longer with some corporates more than others, in general. That's probably 50% of the initial target Element AIM customers, because those tend to be some of the larger, bigger users, bigger hospitals. Those things are in the number as well. I'm thrilled with Element AIM because it performs well. It solves a problem that veterinarians and technicians love to have solved, it performs really well. Like, people who have it are thrilled. We've different utilization levels. We've got a handful of customers that are 20,000, 25,000 in consumables utilization this year, a handful of customers who are just now getting their feet under them. Long term, I think it's going to be a great contributor, I think it's a successful product launch, just a little bit slower than we'd hoped. Great. Thank you. You're welcome. Thank you. Next we'll move on to Elliot Wilbur with Raymond James. Thanks. Good morning. Kevin, I wanted to go back and ask a question around vet clinic visit trends. I think last conference call, you and Catherine had highlighted the fact that you believe that the company's delta or exposure to the percentage in visit declines was something on the order of 0.5-0.75 or something in that range. I'm just wondering if that is similar to the experience that occurred in the third quarter, maybe just bigger picture thoughts in terms of the overall trend in that number. There had been expectations for recovery by year-end. That seems somewhat unlikely at this point. As we shift our thinking towards 2023, what are you thinking about in terms of potential inflection point in that number? Much of the industry narrative, I guess, has revolved around the idea that it's largely capacity-driven, but it seems like there's other factors that are increasingly beginning to sort of weigh on the return to the normalization in terms of clinic visit trends. Just maybe hopefully get some high-level perspective on that thought. I have a follow-up as well, but I'll stop there for the moment. Yeah. Elliot, I'll try and riff a little bit. I'll keep it reasonably short. Yes, if vet visits are off 4 in terms of visits, we're seeing unit volume in the negative 3, negative 2.5. I think those trends are largely in place. When vet visits are off 3, 2.5, we're not capturing necessarily 100% of them, and it's not a direct link, right? It's not going to be a ratio where you can say, okay, vet visits are off 2.5, apply a 0.75 multiple to it, and we'll get exactly what unit volumes are going to be, because I think diagnostics seem to be holding up a little bit better. I think spending per visit is a reasonably good indicator that diagnostics are holding up a little bit better than vet visits. We think the trend is good, but again, 30, 60, 90 days and these snapshots, they're helpful, but they're not precise. In terms of normalizing, I think that's a super important word. There's still a ton of noise in the year-over-year comparisons, even on labor constraints and some of those things. We're watching it, but people tend to get comfortable, and they tend to do better with constraints once they normalize, right, once they get more comfortable with it. Vet clinics are adjusting, pet owners are adjusting, everybody's adjusting, and there's still an awful lot of noise on year-over-year, in terms of vet visits and things like that. I think it's a little bit early to say it's all clear, but I think the trend is definitely not negative 4. I think we're under negative 3 at this point, probably somewhere in the twos. Maybe by the beginning of next year, we start getting back to growth in the, I don't know, maybe second, third quarter of next year. It's a trend. Okay. Just following up on some of your comments earlier with respect to some of the dynamics you're seeing in the E.U. market on the capital equipment or larger dollar ticket item purchasing patterns, just wanted to ask basically a similar question in terms of what you may be seeing in the U.S. With higher inflation, higher cost of financing, greater macroeconomic uncertainty, how much is that negatively impacting capital equipment decisions on the part of independent vets and some of the larger corporates? Thanks. Catherine, I think we had a great fourth quarter and third quarter last year in imaging. I don't think we're looking certainly for growth over that with the headwinds that we pointed out. I don't think any of our numbers that we're calling out are cliff events. We see $1 million here, a half million there, $1 million here, a half million there. What I mean by that is, ultrasound in Canada might struggle where digital radiography might be doing okay. Going into the November, December selling season for capital equipment in the U.S. tends to be tax-driven, just in terms of Section 179 accelerated depreciation and some of those things. Again, I don't see it as a cliff event, but I definitely see it as cautious. I think it's logical for people to see that it's more expensive to finance it and capital equipment has a higher ticket item upfront, I think just requires a little bit more confidence. We hear that from the sales team, and I think that's real. Catherine, do you have any additional color on that? No, I agree. I think the last half of last year for especially the U.S. business and even Europe into Q4 from an imaging standpoint, was pretty high, rather record revenue for Heska in that regard. The full year guide didn't necessarily include a step-up. I think you're right that based on what we're seeing, there are certain headwinds that we're just being more cautious about given trending through the third quarter. Was there anything further, Mr. Wilbur? We'll move on to Benjamin Haynor with Alliance Global Partners. Good day, guys. Thanks for taking the question. Congrats on the clearance of the trūRapid Heartworm test. Can you remind us how you plan to bundle that in the U.S., or what the commercialization plan is here? You've followed the company for a long time, that's been one of my white whales to get Heartworm approved, that October 20, that was a big day. In terms of getting into that market, we exited Heartworm several years ago and getting back into it with a wonderfully performing test and good margin also comes at a good time for us because we manufacture a very nice Heartworm preventative. Okay. Merck sells this Heartworm preventative, Tri-Heart, is a Heska product. We also have the ability to market it under our own brand. We think that a test and treat is good. We think that a super high-performing test, we think we have the highest performing test on the market, at a very aggressive price can get some market share. We love the trūRapid business. It's got a moat around it, and part of that moat is regulatory and the hardest thing to do is to get Heartworm tissue samples the natural way. Okay. It's just taken many years to get there. Yeah, test and treat, and then also there are thousands of shelters in the U.S. that every time they take a pet in, a heartworm test is required, heartworm test required on the way out, and then of course, heartworm preventative to make sure that they don't affect the whole population within the shelter. We see just a number of really good markets there. I guess the question is, will those be sold as more of a one-off type product rather than, say, include the trūRapid in your bundle and extend with Heska for another six years? Absolutely. We will approach our subscriber customers and make it part of our bundle. I think everybody understands the power of a bundle and the power of having every leg of the stool, and having a Rapids business I think is an important piece of that. Yeah, we'll definitely be going to market with our own customers. Corporate accounts, same thing, shelters. These don't necessarily tend to be one-off. They tend to be in bulk. The other thing is being ready for the main heartworm selling season, which tends to be spring, is important as well. Obviously we missed that in 2022, and obviously we won't miss that in 2023, kind of a year-over-year comparison. That's a nice positive for us as well. Okay. That's helpful. Then can you discuss the AI-powered aspects of the PIMS system here? Yeah. There are two things that are really happening in PIMS. Maybe three, there's just a general upgrade cycle because of mobile and cloud deployment, the ability to run on touchscreens, mobile phones, and cloud to upgrade, update, all those types of things. I'll just call that cloud mobile architecture. I think that's going to cause almost all legacy systems in the veterinary space to go through an upgrade cycle. The second thing is the AI piece, the predictive medicine piece. That does a number of things that are super helpful. For instance, based on age, species, weight, breed, all of those types of things, and presenting conditions, there are clearly certain disease processes that are going to be more prevalent in some of those combinations than others. The ability for the AI then to predict and recommend the next steps in terms of the next diagnostic, eventually recommend the next steps in terms of the pharmaceutical and even the diet is super important. In addition to that, the AI has the ability to speed up workflow a tremendous amount. You're starting to see deployments in things like X-ray, for instance, where the AI is able to pick up, with an unbelievably good recognition rate, a lot of pathology off of X-rays, point those out and speed up workflow and improve the diagnostics, then recommend the next steps. Those next steps might be an ultrasound. The ultrasound next steps might be a fine needle aspirate. The fine needle aspirate goes on a slide and goes to our HeskaView telecytology business. All of those things AI will be very helpful for. One of the things that we find, we share this with our industry peers, the breakdown of next steps requires that every veterinarian have the latest information from the latest papers on what the diagnostics reflects to. A lot of times there's a breakdown somewhere in that process and all of the testing that clinically should be done doesn't necessarily always get done. I think AI will support that decision-making process and make sure that all the testing that should be done is getting done. It's super big revolution. I think it's going to also help tremendously with labor constraints. It'll speed up workflow quite a bit. On that should be done that gets to be done or becomes done because the AI suggested. Does that also, do you think, help with some of these veterinarians who may not be the most comfortable on selling whatever the next diagnostic in the chain might be? Does it make it easier for them to present, "We should run this, that, and the other thing," to the pet owner, in your view? Absolutely. Look, we're all creatures of habit, and if our habit has a hole in it, we don't know. It's probably a blind spot. Look, veterinarians want to do the best medicine they can, and then they want to present level A medicine, level B medicine, level C medicine within the constraints of the finances of the pet family. The AI is going to give them a tremendous amount of information to do that without falling into those holes, those blind spots. Remember, there's a great amount of variability in the age and the training of veterinarians globally. Certain markets will do more testing of certain things, and certain markets will do far less testing. It's not because the patient, species, breed, weight, age, all of those types of things are different. Spanish dogs and cats, because they speak Spanish, probably don't have different testing needs than German dogs who speak German. Some of those holes that you'll find are just that universal global best practices aren't necessarily making its way into each of those geographic markets. I do think that the AI and then the easy to deploy and upgrade and update the AI capabilities via a cloud architecture will be super compelling, and there are just literally thousands and thousands of legacy systems out there that are totally incapable of this, and I think it's a big opportunity. Okay. That's very helpful. Thanks for taking the questions. That's it for me. Thank you. Thank you. Once again, ladies and gentlemen, if you would like to ask a question today, you may do so by pressing star one. Next, we'll move on to Erin Wright with Morgan Stanley. Great, thanks. Where are you now in terms of the install base for Element AIM, and how should we be thinking about that in terms of your goal for the year as well as heading into 2023 in terms of the Element AIM strategy and install base there? Thanks. Element AIM will come in below our 500 target for the year. I think we've called out the discrete reasons, mostly delays in execution in getting to market in Europe, 30 to 60-day delays in some of those markets from what our plan was. Also in getting added to the corporate accounts, which again, we've accomplished that as of November, but we can't get the full calendar back. Going into next year, I think both of those things are in place. I think supply chain's in place, logistics in place, localization language is in place. I think we're in a pretty good place. We're not remediating quality or performance issues. The product is performing wonderfully. We've just been a little bit slower on the draw in getting the product out to our own people and getting it executed in our own corporate accounts, but I think those are largely behind us. I think we're in a pretty good place. Our Element AIM number is in our guide for the balance of the year, and so I think we've communicated what that looks like for 2022, and I think 2023 looks better. What are some levers that you can pull if fundamental trends don't get better from here, either from a macro perspective or just in Europe, for instance, and how are you thinking about your visibility on growth now into 2023 in light of these dynamics? Thanks. Yeah, no, that's a great question. Again, you control what you can control. Product launches are critical. It's a reasonably weak answer, Erin, but it's real. If you're late in 2022, you're late, not you failed, and you're ready for 2023, the things that you didn't capture in financial economics in 2022 become positives in 2023. They, by definition, become that incremental contributor. I think we've got a handful of those. We were maybe a little optimistic on the calendar, but not the end result, and we lost 30 days here and 60 days there in various different things. Going into 2023, those things are secured. I called out trūRapid Heartworm in North America. We'd hoped to have the Heartworm approval in time, at least for the late selling season through the summer, and we didn't get it from USDA, but we did secure it on October 20th, and we'll have it going into the next selling season in the spring. Things like that are growth drivers that we just didn't capture in 2022 that we're confident we'll capture in 2023 because we've hurdled the barriers. I think that answers the question. I've called out a couple of those on the call, not all of them. Great. Thanks so much. You're welcome. Thank you. We'll take Mr. Jon Foti with Foti & Company. Hi, good morning. Thanks for taking the questions. Kevin, can you talk a little bit about the LightDeck acquisition, why you made it now, and what do you think the impact will be on gross margin and operating margin? I'll take the strategy piece first. LightDeck is an extraordinary technology. We began work with them. That's our Element i+ platform. It's just extremely scalable. When I say scalable, the menu is scalable, the performance, the ability to put multiplex tests on it. It does immunoassay tests, been very well received. We wanted to scale it. We want thousands of them in the field, not hundreds. We wanted to accelerate product development. We made an investment in a cancer screen, our Nu.Q Cancer screen. That runs on our LightDeck-developed and manufactured Element i+ platform. That investment, taking that in-house, allows us to go faster and allows us to go at a much bigger scale. We think the cancer screen is going to be a very large business. We think the performance, we think the market that it serves, a cancer test that serves a $50 or below test that can give you a cancer screen in minutes at the point of care, we think that's a winner. The veterinarians seem to agree. For instance, on our last webinar, we attracted 1,900 registrants. 61% of those said they were very likely or likely to do cancer screening in their practice, and another 28% said they weren't sure. We had to laugh. We're not quite sure what the other 11% are thinking. But that's just one webinar that was conducted about a month ago. There's clearly huge demand for taking it in-house and being the technology owner of those things, the intellectual property, and then the ability to make thousands of analyzers and millions of tests at scale. The timing was really good. The BARDA U.S. government-funded had also recently invested about $35 million into a very high-capacity, super-modern, super-automated facility that's able to reach FDA and USDA-level manufacturing. It happens to be in Longmont, Colorado, which is about 30 minutes from our corporate headquarters. It just fits across the board. We think that product platform can be a huge franchise builder. We think it's super unique, and we think it's going to be a halo product for us. So a great investment. I can take the 2023 question, Jon. Obviously, we haven't provided much detail around the impact to 2023 just in general as we'll update our guide for 2023 during our fourth quarter call. But given that we are acquiring a not yet online, rather significant manufacturing facility with great capabilities, sometime in 2023, which is the date is not yet definitive, we do believe it will be dilutive to operating margin and Adjusted EBITDA margin in the near term as we start to scale that facility, and as Kevin mentioned, coupled with the timing of the cancer screening and monitoring test as well will impact the amount of dilution and the extent to how long we would expect that. We'll have more detail in February. Okay. My question was actually more the longer-term impact on gross margin. When everything's running there at capacity, what do you think a good target is for Heska's gross margin? I think it's too soon for us to communicate that on a long-term basis at this point. Okay. I assume you do think it'll be fairly accretive to where you are now, this acquisition? Yeah, over a long period of time, for sure. Very. Thank you. Yeah. One point on that, Jon, and thanks for the question. When we say that we're in a build phase and we're now transitioning into scale, the ability to scale something like an Element i+ does two things. Just in the last couple of years, we've launched Element AIM, which is a fully proprietary Heska-owned invention. We make it, and has great margin profiles, especially as scale increases. We've done the same thing now with Element i+. Traditionally, point-of-care is chemistry hematology. Some of these newer products are the products of the future. They're differentiators. I think Heska can claim to have the most interesting, innovative, and possibly influential point-of-care portfolio. We do a great job in just a traditional chemistry hematology piece, but I think the future's going to be one on new testing, things like cancer screening and things like Element AIM. Owning those as Heska-owned inventions and then having control of our destiny and the scalability and just the inherent value of assembling those assets, I think is extraordinary. Yes, it will be accretive to margins, but it's also much more than that. Thank you. You're welcome. Thank you. If there are no further questions, I'd like to turn the conference back over to you, Mr. Wilson, for any additional or closing remarks. Hey, thank you. Thanks, operator. Thank you to everybody who joined the call. Go vote. I guess it's voting day, including you, David. You're international, but I hope you were able to vote. We'll look forward to updating you on our full year and our 2023 guide here on our next call. Until then, be well, stay safe, and yeah, go vote. Thanks. Bye-bye. Thank you. That does conclude our teleconference today. We do appreciate your participation. You may now disconnect.