Greetings, and welcome to the Q2 2026 Pelthos Therapeutics conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone requires operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mike Moyer of LifeSci Advisors. You may begin. Good morning, everyone, and welcome to Pelthos Therapeutics' 2026 second quarter financial results conference call. Pelthos issued a press release today announcing its financial results for the quarter ended June 30, 2026. A copy can be found in the investor relations tab on the company's corporate website at www.pelthos.com. Before we begin, I'd like to remind you that during today's call, statements about the company's future expectations, projections, plans, and prospects are forward-looking statements. These forward-looking statements are based on management's current expectations. These statements are neither promises nor guarantees and involve known and unknown risks, uncertainties, and other important factors that may cause the company's actual results, performance, or achievements to be materially different from the company's current expectations expressed or implied by the forward-looking statements. Any such forward-looking statements represent management's estimates as of the date of this conference call. While the company may elect to update such forward-looking statements at some point in the future, it disclaims any obligation to do so, even if subsequent events cause its views to change. As a reminder, this conference call is being recorded and will remain available for 90 days. I'd now like to turn the call over to Scott Plesha, Chief Executive Officer. Scott, you may begin. Thank you, Mike, and good morning, everyone. We're delighted to be with you today and share with you our second quarter 2026 operating results and highlights. Joining me today are John Gay, our Chief Financial Officer, and Sai Rangarao, our Chief Commercial Officer. The second quarter of 2026 was a successful one for Pelthos, with a strong execution and progress made in several key areas that I'll share at a high level with you. First, we experienced substantial revenue growth driven by increased prescriptions of our lead product, ZELSUVMI, in its fourth quarter since launch. Next, the contract we executed with a major pharmacy benefit manager at the end of last year has been an important catalyst in demand for ZELSUVMI. Within this PBM, units dispensed increased 81.3% during the quarter, while the number of prescribers increased 68%. We continue to explore additional contracting options to further our reach and market penetration. Finally, we continue to make progress in establishing the manufacturing of our two other highly complementary products, XEPI and XEGLYZE. John and Sai will provide a more detailed look at the quarter's ZELSUVMI launch metrics and reported financial results. I'd like to share a brief overview of our results of operations. Our top-line results were driven by a 48% increase in prescriptions units as reported by Symphony Health, which increased from 8,084 units in the first quarter of 2026 to 11,925 units in the second quarter of 2026. This drove an increase in net product revenue from $10.7 million during the first quarter of 2026 to $15.4 million in the second quarter of 2026. Importantly, we achieved this growth with only a minimal increase in wholesale inventory while reducing days on hand by approximately three days from the end of Q1 2026 to the end of Q2 2026. As a reminder, ZELSUVMI is a novel topical nitric oxide-releasing product indicated for the treatment of molluscum contagiosum, or MC, in patients one year of age and older for up to 12 weeks. ZELSUVMI is an important advancement in the treatment of MC, as it's the first and only FDA-approved therapy that can be applied by parents, patients, or caregivers in the home or on the go. We believe the opportunity to treat MC at home and without the need for an in-office procedure has been and will continue to be a key driver of ZELSUVMI demand. We are pleased with the growth delivered in Q2 and are confident in our future performance. Our belief remains strong that ZELSUVMI is revolutionizing the treatment of MC and is becoming the first-line treatment of choice for many HCPs and patients. This is supported by the recent August 2026 Journal of Drugs in Dermatology, JDD, publication titled "Molluscum Contagiosum in the Pediatric Population: Expert Consensus Guidance on Prevention and Treatment," which includes berdazimer 10.3% gel, ZELSUVMI, as the only at-home available treatment option for MC that can provide clinically meaningful clearance rates, and when combined with supportive management, provides an opportunity to improve outcomes and quality of life for children with MC. These landmark guidelines represent a significant advancement in the management of MC, and we're committed to ensuring they are appropriately communicated to healthcare professionals who treat MC. Regarding XEPI and XEGLYZE, XEPI is a novel FDA-approved topical treatment for impetigo that addresses a critical unmet need in antibiotic-resistant skin infections caused by staph and strep infections, most commonly affecting children. Impetigo is the most common skin infection in children seen by pediatricians, with approximately 3 million patients diagnosed with this bacterial infection each year. We believe XEPI is a highly complementary product, as it mostly treats children that are managed by the same healthcare providers as ZELSUVMI. Importantly, this allows us to leverage our commercial infrastructure, including our expanded sales force. We continue to focus on establishing the manufacturing process and building launch inventory and expect to launch XEPI in the first quarter of 2027. With respect to XEGLYZE is a novel FDA-approved product indicated for the treatment of head lice in patients six months of age or older that is highly complementary to ZELSUVMI and XEPI and is expected to require minimal incremental overhead to commercialize. At the operational level, we are standing up manufacturing for XEGLYZE and expect to bring it to market in the third quarter of 2027. Both XEPI and XEGLYZE will have meaningful call overlap for existing sales force, providing the company with greater operational and financial leverage from our existing team and infrastructure. In summary, we are pleased with the strong response from healthcare professionals to ZELSUVMI, as demonstrated by the more than 30,000 units dispensed since its launch in July of 2025. We continue to plan for the upcoming launches of XEPI and XEGLYZE, two complementary FDA-approved products. We'll continue to evaluate and optimize our commercial strategy to drive sustainable long-term shareholder value. I'll now turn it over to Sai to provide more specifics on the results of the ZELSUVMI launch and key performance indicators. Thank you, Scott. Good morning, everyone. I'm pleased to provide an update on our Q2 2026 ZELSUVMI performance. Our progress to date continues to deliver better than expected results in our first full year or four full quarters since launch. For Q2 2026, shipments and prescriptions continue to track ahead of expectations. We also continue to receive very positive feedback from several prescribers regarding the ZELSUVMI clinical profile and ease of use. We now have more than 8,000 unique HCP prescribers in our latest data. We remain confident that ZELSUVMI is revolutionizing the treatment of MC, as evidenced by the increased utilization of ZELSUVMI. In the first full year since its commercial launch in July 2025, more than 25,000 patients have been prescribed ZELSUVMI. This is an incredible milestone for ZELSUVMI and Pelthos. Getting into the prescription details for Q2 2026, the number of prescriptions rose a very strong 48%, from 8,084 in Q1 to 11,925 prescribed units in Q2. The number of unique prescribers also rose from 3,288 in the first quarter to 4,571 by the end of the second quarter, with both sets of data reported in Symphony's metadata. Prescribed units in July were 4,299 versus 4,208 in June. With typical seasonality and summer scheduling dynamics for HCPs and patients, performance between June and July was in line with our expectations. We continue to feel confident about our growth potential in Q3. We also continue to see weekly highs in prescribed units with our latest data for the week ending July 31st, reaching an all-time high of more than 1,000 units dispensed of ZELSUVMI. Our coverage for ZELSUVMI remains strong in 2026. As of today, we have a 59% coverage rate for commercial insurance plans and an incredible 100% coverage rate for Medicaid. This is a testament to the fact that ZELSUVMI, as the first FDA-approved at-home treatment for MC, is being adopted as a first-line treatment option and is being well-received by HCPs and coverage providers. As previously announced, we executed a contract with a large PBM to remove friction and help patients gain access to ZELSUVMI. This effort has continued to help many patients gain rapid access to ZELSUVMI. For Medicaid coverage, a number of larger states still do not require a prior authorization. In other states that require a PA, Medicaid only requires a prior authorization written to label, meaning that a patient over one year of age presenting with MC qualifies for coverage. We continue to have very good gross-to-nets, or GTNs. Our current GTNs are driven by distribution costs, Medicaid discounts, payer contracts, and our co-pay voucher program. It is our goal to offset prescription costs through the co-pay card program so that the prescription cost is $0 or close to zero for the majority of patients in most instances. For the second quarter of 2026, we had favorable GTNs of 29.6%, in line with our expectations. Going forward, we expect our GTNs to move into the mid-30% range. In Q2 2026, we made three key additions to our sales team footprint with the launch territories in Pittsburgh, Pennsylvania, Albany, New York, and Shreveport, Louisiana. These strategic additions bring our field force to 67 sales territories, further strengthening our reach and positioning us to deliver impactful ZELSUVMI education and awareness to a broad and growing community of healthcare professionals. Our awareness and utilization of ZELSUVMI as the first and only at-home prescription treatment option for MC are heavily complemented by our comprehensive promotional tactics. Our ZELSUVMI YouTube commercial and our patient testimonial videos featuring a young patient and a renowned pediatric dermatologist continue to be highly educational and successful. With more than 9.2 million total views of ZELSUVMI YouTube commercial and more than 400,000 views of our patient testimonial videos, these unique and informative short-form videos have prompted parents and caregivers, along with adult patients, to ask their HCPs about ZELSUVMI and the potential for appropriately utilizing the treatment for their MC. To further strengthen our digital outreach in June, we launched a new series of HCP-focused YouTube videos featuring expert clinicians sharing their experiences with MC and their perspectives on ZELSUVMI as an important treatment option for appropriate patients. This video series, along with the content to follow, provides HCPs with concise, expert-driven insights that help them quickly understand the meaningful benefits ZELSUVMI can offer to appropriate patients. Throughout Q2 2026, we participated in several key conferences, engaging with and educating HCPs on the differentiated benefits of ZELSUVMI for their patients. Our presence and presentations at the Society for Pediatric Dermatology and one of the largest nurse practitioner, physicians assistant dermatology conferences generated significant attention and a strong volume of HCP leads. These engagements translated into meaningful interest in both continued and new use of ZELSUVMI, reinforcing the growing momentum and awareness of the brand among HCPs. We continue to build on our great tactical platform, along with the strong execution of our sales team to grow ZELSUVMI. I am very proud of our strong performance to date, which reflects the passion, dedication, and hard work of our exceptional commercial team. With that, I now turn the call over to John to discuss our financials. John? Thank you, Sai. Good morning, everyone, and thank you for joining us on today's call. As Scott and Sai have already touched on, we continue to see increasing demand for our lead product, ZELSUVMI, as demonstrated with our growing pull-through and dispensed units to date. Before I speak to the financial results for our second quarter 2026, I would like to explain in more detail two filings Pelthos made this morning with the SEC regarding the complex U.S. GAAP accounting matter specifically associated with the fair value accounting of our related party convertible notes. I would encourage investors to review the company's current report on Form 8-K and Amendment Number 1 to the company's quarterly report on Form 10-Q for the quarter ended March 31st, 2026, each of which was filed with the SEC earlier today and contains additional information regarding this restatement and the related accounting analysis. The following activity this morning associated with the first quarter of 2026 resulted from a misapplication of Accounting Standards Codification 820, fair value measurements, related to certain fair value measurements used in estimating the fair value of our convertible debt, including valuation methodologies, specific valuation assumptions, and inputs. Specifically, this matter related to the valuation impact of certain provisions and the convertible note subordination agreement entered into in January 2026 by the convertible note holders. As part of the Horizon Technology Finance term loan facility closed in January of 2026, a subordination agreement was executed by the convertible note holders. Pursuant to this agreement, all payment obligations under the convertible notes, including principal and accrued interest, became subordinated to the company's obligations under the Horizon term loans. The valuation issue stemmed from the effect of this subordination agreement and its impact on the fair value measurement of the company's convertible debt. The valuation assumptions and methodologies used in the company's originally filed Form 10-Q for the quarter ended March 31st, 2026, did not appropriately reflect the impact of the subordination agreement in accordance with ASC 820, fair value measurement. As a result, the company restated its previously issued financial statements for the quarter ended March 31st, 2026, to revise certain fair value measurements associated with its convertible debt. The amended Q1 2026 filing reflects the revised fair value measurements and related accounting adjustments associated with the subordination agreement in accordance with ASC 820. The restatement is limited to fair value accounting measurements associated with the company's convertible debt and related accounts and does not affect the underlying economics of the company's convertible debt arrangements. In summary on this matter, I would like to emphasize that the restatement relates solely to fair value accounting estimates. It does not affect the company's cash balances, net revenues, product sales, operating expenses, nor operating loss, operating cash flows, or adjusted EBITDA. With that, I will now focus on the operating results of our commercial business. Please note that my comments will focus on our second quarter 2026 results as compared to the first quarter of 2026. For the second quarter of 2026, we reported $15.4 million of net product revenue, representing a 45% increase from the first quarter of 2026. With today's filing of our quarterly report on Form 10-Q for the period ending June 30, 2026, we have now completed and reported four fiscal quarters of commercialization efforts for ZELSUVMI. While these quarters straddle two fiscal years, we have reported in aggregate $42.3 million of net product revenue for the four quarters since commercial launch of ZELSUVMI. This amount is comprised of our net product revenue from the third and fourth quarters of fiscal 2025 of $7.1 million and $9.1 million, plus $10.7 million and $15.4 million of net product revenue for the first and second quarters of 2026, respectively. Cost of goods sold was $3.6 million for the second quarter 2026 and $1.7 million in the first quarter of 2026. Cost of goods sold includes fair value adjustments related to finished goods and active pharmaceutical ingredient inventory on hand at the time of the company's merger in July 2025. Cost of goods sold for the second quarter of 2026 also include a $0.9 million write-off of commercial API inventory identified through the company's quality control processes related to out-of-spec testing results for API manufactured during the quarter. The underlying procedural cause of this matter was addressed, and subsequent API manufacturing has commenced and is meeting specifications. In addition, as previously discussed, a component of our cost of goods sold includes fair value adjustments associated with the July 2025 merger. At the time of the merger, all finished goods and active pharmaceutical ingredient inventory on hand was fair valued as prescribed under U.S. GAAP. As of the end of the second quarter of 2026, we have sold through the stepped-up finished goods inventory, and we expect to consume the remaining stepped-up API inventory within the next 12-15 months. Once we have sold all inventory with a base of step-up, we expect to have a normalized per-unit cost of goods of approximately a mid-single-digit percentage of our current WAC price. For the second quarter of 2026, we reported $27.7 million of SG&A expenses, representing a 31% increase from the first quarter of 2026 at $21.1 million. We provide a detailed breakdown of the components of SG&A within the MD&A section of our quarterly report on Form 10-Q for the period ended June 30, 2026, filed this morning. In summary, the $6.6 million quarter-over-quarter change in SG&A was primarily related to an expected $5.3 million increase in one-time non-recurring sales-based milestone related to our ZELSUVMI license, an increase in royalties owed of $0.8 million, an increase in personnel cost of $1.3 million, which includes $0.5 million of cash-based severance payments and $1 million of non-cash stock-based compensation related to a former executive, a decrease in regulatory and manufacturing-related expense of $0.8 million, an increase in corporate expenses of $0.7 million, a decrease in marketing and commercial expense of $0.5 million, and a decrease in non-cash depreciation expense of $0.2 million. Total cash basis SG&A, excluding milestones, royalties, and severance, was approximately $16.2 million for the second quarter of 2026 as compared to $16.7 million for the first quarter of 2026. We expect that quarterly cash basis SG&A, excluding milestones, royalties, and severance, will fluctuate in 2026 as we continue to invest in the expected growth of ZELSUVMI and as we prepare XEPI and XEGLYZE for commercialization. Net loss for the second quarter of 2026 was $23.4 million, as compared to $25.1 million of net loss for the first quarter of 2026 as amended. Adjusted EBITDA for the second quarter of 2026 was a - $5.7 million, as compared to a - $8.0 million for the first quarter of 2026. Turning now to our balance sheet. As of June 30th, 2026, we had $24.2 million of cash and $14.5 million in accounts receivable. Our working capital at the end of the second quarter of 2026 was $31.4 million, as compared to $44.8 million at the end of the first quarter of 2026. As previously discussed, in January this year, we entered into a $50 million senior secured term loan facility, of which we drew $30 million at close with Horizon. Based on the company achieving trailing 12-month net product revenues of $42.3 million as of June 30, 2026, the company understands it has achieved access to an additional $10 million under the term loan facility, subject to the lender's discretion. Based on current projections, including forecasted cash flows related to net product sales of ZELSUVMI and proceeds from the initial draw of the Horizon facility, we believe we have the capital and flexibility needed to advance and execute our business plans. In summary, our performance since the launch of ZELSUVMI in July 2025 has exceeded our expectations. Furthermore, since launch, we have strengthened our balance sheet and believe we are well-positioned to continue our commercial execution story, bringing a much-needed treatment to Pelthos patients. With that, I'll now turn it back over to Scott. Scott? Thank you, John. In closing, I would now like to highlight a few key points. To begin, we are extremely pleased with the success of the ZELSUVMI launch and our financial results to date. As we remain relatively early in our launch, we have not yet provided discrete revenue and earnings guidance. However, we remain confident about our revenue growth trajectory and believe that our current cash balance provides a runway to execute our business plan. I want to thank you for joining us today to learn more about the Pelthos story. I will now turn the call over to the operator for any questions. Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. We ask to please limit to one question and one follow-up. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Thank you. Our first question comes to the line of David Amsellem with Piper Sandler. Please go ahead. Hi, this is [Now John] for David. Thank you for taking our question. First, as we look toward the second half of the year, you have in the past cited a seasonal dip in claims in 3Q relative to 2Q. Any early indications on how pronounced that step down in claims might look this quarter? That is number one. And number two, regarding BD, what is your current appetite for adding an additional asset to the portfolio? Are you casting a wider net in the feed space, or do you continue to favor derm assets? Thank you. Okay. Yeah. Thank you for the question. I will let Sai talk a little bit about your first question, then I will address the second. This is Scott. Good morning. Thanks for the question. In terms of claims relative to Q3, our early indicators tell us that it is actually going to be quite stable compared to where we are in Q2. We do see more of the global data sphere that tells us that you see a natural decline in the quarter, as we have stated previously. But the early weeks here into Q3 really show a positive increase in what we see in terms of overall MC claims and patients utilizing ZELSUVMI. So we feel that that is promising for the quarter, but again, in line with our expectations. Yeah. I will take the second question around BD. Right now, obviously, we are really busy with our launch. We are about one year in with ZELSUVMI, preparing for XEPI and XEGLYZE, but we will continue to evaluate other opportunities. I think, critically for us, we are wanting to make sure that they align with our current assets. Meaning that we have very novel, actually NCEs that are meaningful and meet a need in the market that has not been addressed. So, something that would fit in that. Not really looking to get into a me-too-type marketplace at this time. Regarding whether it would be ped or derm, I think ideally it would overlap in both, but if we found something compelling enough in one specialty or the other, I think we would consider it. Got it. Thank you. Thank you. Your next question comes from the line of Olivia Brayer with Cantor. Please go ahead. Hi. Good morning, guys, and congrats on the quarter. Can you maybe talk about how you expect gross-to-net trends to evolve over the coming quarters? When do you actually expect to start to hit that steady state in the mid-30% range? As for the trends that we saw so far throughout the summer, has there been any anecdotal feedback on what's been driving some of that weekly script's choppiness? I guess I'm just trying to get a better gauge for whether we might be out of that weekly volatility, especially now that kids are heading back to school. Thanks so much. Thanks, Olivia. I'll take the GTN question really quick. We reported 29.6%, which is quite good, especially in dermatology. In Q1 it was 29.1%, so we're up a 0.5 point. In the past, obviously, we've guided that we think we're going to go to the low to mid-30% here, later in the year here. When we do that, we're actually giving room for a potential plan to be added. So, we're in discussions with a plan that we would like to have a contract with going forward. We'll see if that happens or not. It is one of the areas where we have friction, so we'll see if we can get that done. That would cause the rates to move to the mid to high 30%. I think without that plan, we'll be more in the low 30%. We're only up a 0.5 point this quarter. So, I think still, again, very attractive and I do think, barring any other contracts or us wanting to do anything else, I think that low to mid-30% will be where we live going forward. I'll turn it over to Sai for the second question on the volatility. Yep. Thanks, Scott. Good morning, Olivia. Thanks for the questions. In terms of overall volatility that we've seen over the last several weeks, I think a lot of it's tied to, as we had stated previously, the expected summer schedules, especially the HCP offices, and as well as the patients themselves coming in and with being out of school and vacation schedules, I think you see that affecting an acute marketplace in which we're marketing within. What we do see, however, is an uptick in overall claims and then obviously utilization of ZELSUVMI, where we had our highest week, just as we stated from our previous week's data. As it relates to back to school, we really do feel like there's going to be an influx of patients back in for traditional wellness checks and then, the natural tie to then potentially serving their molluscum diagnosis. That obviously is going to vary depending upon where you are geographically, meaning, some regions will be getting back to school a little sooner than others. But we do expect that to normalize here in the coming weeks. Again, I think we feel pretty confident based on what we've seen here in the last couple of weeks, in particular, in terms of an overall utilization. Yeah. I'll just add, Olivia, this is Scott. I think a holiday like July 4th, it impacted July 4th was on a Friday. It impacted that week, the week ending the 4th and the next week, because people were taking long weekends and maybe a vacation the next week. Sai mentioned us being an acute drug, and we're really dependent on NRx coming in, though our refills have actually gone up quite a bit in Q2. As quarter-over-quarter percentage-wise, they were up greatly, almost doubled. When you think about the impact of a holiday, it's much greater in a market like this. Even the week that kids go back to school, they're not going to the doctor that week, right? There is a little choppiness right now as well. We expect to grow in the quarter. Nonetheless, we grew in July, over June, even though there was a holiday in July. Okay, great. Thank you both. Very helpful color. Thanks, Olivia, appreciate it. Your next question comes from the line of Brandon Folkes with H.C. Wainwright. Please go ahead. Hi, thanks for taking my question and congrats on the progress. Just following on from the earlier question, you talked about sort of the back-to-school wellness checks. Just sort of following on that theme, as ZELSUVMI continues to grow, can you just talk about pediatrician awareness of the product and the willingness of pediatricians to treat? Are you seeing an increase in both awareness and willingness to treat from a pediatrician perspective? Thank you. Yeah. Good morning, Brandon. This is Sai. Thanks for the question. Yes, I do believe we are seeing an increased awareness in the space, largely prompted through what our field force has been doing as we call on an equal amount of pediatricians, compared to a traditional dermatology segment. We do see an increase of the urgency to treat. We see an increase in the utilization of ZELSUVMI in that category. We are still hovering in that 25%-27% range of pediatric utilization and prescribing of the product. We feel very confident that that will increase over time. We have a lot of other tools that we are using to get out there, as it relates to non-personal and digital promotions. Being at the conferences, the pediatric community definitely does not have as many conferences as the dermatology community, but we will surely be at the ones that make the most sense in order to get the word out and again, increase that awareness and ultimate utilization. Yeah. Brandon, hi. It is Scott. Thanks for the question. Just a little bit to add there. We are seeing growth across all specialties. Two of the metrics that we really like as we look at our performance is that we are adding anywhere from 150 - 200 new prescribers each week. Sai mentioned that we are over 8,000 now prescribers a year in. Quite good there, but, not just new, but repeat continue to grow as well. Over time, it is trending in the right direction. Mentioning pedes, I think, in my comments I mentioned the new consensus guidelines that were just published. That was led by Nanette Silverberg, who is really one of, if not the, top KOL in the world for molluscum. We think that that is going to be a great educational tool going forward for pedes that maybe are not treating or are not treating as much as they should probably. I think it is pretty compelling. It is a very balanced and fair. That panel was comprised of some of the top pediatric derms and, again, in the world, and a top-tier pediatrician as well. As you can imagine, that will get a lot of play, posters and whatnot, or podiums at the different talks, including the pediatric ones. Great. Your next question— Thanks, Brandon. —comes from the line of Jeff Jones with Oppenheimer. Hi, this is Mira on for Jeff. Thank you for taking our questions. Just had two questions. Just wanted to ask more about how do you anticipate the scripts trend to trend through the fall and how should we think about that seasonality in the second half of the year? My second one is what investments and gaining items do you think will be required ahead of the XEPI and XEGLYZE launches next year? Thank you. Thank you. Morning, Mira. I will take the first question, and thanks for the question. In terms of our expectations, as I shared earlier, I think as, again, as it ties to seasonality and the overall claims that we have seen in Q2 and that we expect here in Q3, I think it will still be very much in line with our expectations. Again, as we have stated now, kind of the overall sequence of getting back into school should bode well for us as we are positioned, both via our field force and then our other promotional mechanisms to essentially attend to the needs of the quarter. Again, in terms of our overall expectations, very much in line with what we would see as per expected claims. Yeah, I will talk about the launches of the other products. Again, one of the reasons we really like these acquisitions is we really have our commercial infrastructure in place, and we are going to leverage it. It is really more about the marketing side and the manufacturing side. These won't have the same marketing budget that XEGLYZE has. Right now we are looking at probably a March of 2027 launch for XEPI. We have actually made commercial product, are going through the different testing that needs to be done, and then we need an FDA approval because there was a change in manufacturer sites here. Then it aligns really well with the national sales meeting if we do that. We decided to make sure that we get everything done and we are able to train and launch properly instead of trying to do kind of a soft launch there. It will be a minimal spend around it because of the synergies. Then XEGLYZE right now, we are again, just ramping up manufacturing. It starts a little bit sooner in the process. We are working on API right now. Really, it is mostly manufacturing, probably until almost middle of next year before we start really investing in XEGLYZE spend. Thank you so much. Yep. Thank you. Your next question comes from the line of Thomas Flaten with Lake Street. Please go ahead. Hey, good morning. Thanks for taking the questions. Just a quick one for John. You mentioned the stepped-up inventory, and you need to sell that through until gross margins come back to maybe more of a normalized level. Do you know how long that will take to burn through that inventory? Yeah. Thanks, Thomas. Appreciate the question. Yeah, so as it relates to the finished base, the stepped up from the finished good inventory, we have actually sold through all of that. What we did have on hand from an API standpoint that also had a basic step up, we will continue to convert that into finished good products, and we think that we will burn through that in the next 12 - 15 months. Yeah. It will be Sai's job to speed that up if possible. What can you tell us about the number of touches that you need with the docs before they write their first prescription? Has that changed since launch? Is there a differential between pedes and derms? Any kind of color on that would be super helpful. Yeah, I will take that question, Thomas, and good morning. No, it is a great question because I think in terms of when you get to a steady state or a steadier state rather, you do see the need for lesser touchpoints, and I think that is indicative of our repeat writers that we have. This last week, we hit an all-time high of repeat writers of 193. So I think we have a situation where we have a really important element and a view of where that we see an overall view of there being a need to tie back to the validation of the clinical profile and then overall tying back as well to the repeat utilization, as we also see with refills. As Scott had mentioned, we have seen an 82% quarter-over-quarter increase in refills. Really as I was mentioning, as it ties to the refill mechanisms, that 193 was to the refill count specifically. The HCP writer count is at 157 at an all-time high in our previous week. So we really do see a constant view and continued validation of that repeat writer and overall view of refills as well, which I think decreases the amount of need of attention and frequency at times. Got it. Thank you. Thanks, Thomas. Your next question comes from the line of James Molloy with Alliance Global Partners. Please go ahead. Hi, guys. Matt on for Jim this morning. Thanks for taking our questions and congrats on the progress this Q. Could you give us a bit of an overview on your view of the relative strength of XEGLYZE recently, as well as what counter-detailing messages you guys and they are using against each other out in the field? Thanks. Yeah. Good morning, Matt. This is Sai. I will take that question. Just to be pretty straightforward about it, we do not ever get into a situation where we do any actual counter-detailing. We stay very firm to our clinical profile, for which we feel incredibly confident on and in terms of our overall approved messaging. There is never a situation where we either train or suggest any level of counter-detailing. We exist in a very fortunate market in the sense that we are the first and only at-home treatment prescription option. There has never been that type of option to date. The other products that exist in the procedural space have their own category. By virtue of what we go to market with and what we sell every day in terms of the overall HCP category, very closely tied to our clinical profile, our efficacy story, our safety story, and overall access to the medication. Got it. Any commentary on the relative strength of XEGLYZE in the script world recently? Yeah, obviously we see what they are growing. I think like Sai said, there is room for both of us. I think you could compare our results and decide which that and which revenue is growing faster. I think they are used in different patients, different offices sometimes. There is some overlap in doctors using for both. Honestly, I would ask you to ask them about their growth. It is really about us growing our own business. That is what we are focused on. All right, great. Thanks for taking our questions. Your last question comes from the line of Jonathan Aschoff with ROTH Capital Partners, LLC. Please go ahead. Thank you. Congrats on a nice quarter. How much of the 2Q revenue represents units versus channel fill? Jonathan, in my script, I shared, we actually pulled our days on hand down to three. By three days, I'm sorry, which is under three weeks in the channel at this point, and only up a couple hundred units, basically, of inventory. So very minimal. Okay, thanks. You mentioned 67 sales territories. Is that because you hired three more people? Yes. 50 + 14. Did you add three? What were those geographies? You rambled them off pretty fast. Go ahead. Good morning, Jonathan. It's Pittsburgh, Pennsylvania, it's Shreveport, Louisiana, and Albany, New York. Thank you very much, guys. Yep. Thank you. Thanks, Jonathan. This now concludes our question and answer session. I would like to turn the floor back over to Scott Plesha for closing comments. Thank you, operator. I want to thank everyone for joining today's call. I'd also like to thank the Pelthos employees for their continued focus, execution, hard work, and dedication in supporting patients, caregivers, and healthcare providers. Thank you again for joining our call, and we look forward to updating you on our progress in the future. Have a great day. Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines, and have a wonderful day.