Cibus, Inc. (CBUS) Earnings Call Transcript & Summary

Thanks, and good afternoon, everyone. Bill Koschak here, Calyxt's Chief Financial Officer. I appreciate all of you spending your time with us on this call and webcast covering Calyxt's fourth quarter and full year 2021 earnings results. Joining me is Michael A. Carr, who serves as our President and Chief Executive Officer. We issued a press release with these results right after the market closed today, and you can find it on our website, calyxt.com. Before the formal presentation gets underway, I want to remind everybody that what we say on this call and webcast — including anything about future financial results, future operational goals, and industry prospects — constitutes forward-looking statements and could be affected by various risks and uncertainties that might make actual results differ materially from what's described here. For a list of the associated risks, please see the company's SEC filings. We also discuss adjusted net loss and adjusted net loss per share during this presentation. Those are both non-GAAP financial measures. Additional disclosure about these non-GAAP financial measures is available in Calyxt's press release and its SEC filings, and both of those documents are posted on the company's website at calyxt.com. These non-GAAP financial measures should be viewed alongside the GAAP financial measures, not as a replacement for results presented in accordance with GAAP. Finally, we are webcasting this conference call. You can find the webcast link in the Investor Relations section of calyxt.com. With that, I'll hand things over to Michael for his opening remarks. Michael?

Thanks, Bill, and I appreciate everyone being on today's call. We're driving a plant-based revolution, and our commitment is to deliver the bioproduction strengths of plants to the innovators of today. Looking ahead, our organization is entering the growth and scaling stages of its development. Our platform stands apart, our production capability is one of a kind, and our financial model differs from what other synthetic biology firms have. I'm eager to go over more details on these topics during today's call. For Calyxt, 2021 brought a true transformation. I want to take a moment to look back and go over the significant strides we've achieved while shifting from an agriculture business into a synthetic biology company in a brief span of time; we're taking the technology, the people, and the know-how we already have and steering this powerful combined asset toward ways that unlock the company's fullest potential. That straightforward vision served as the foundation for our new strategic initiative, which we announced in October. The initiative calls for using our core expertise and broadening what we offer so we can supply innovative, high-value, and sustainably produced plant-based chemistries to a larger set of end markets and a more diversified customer base; we recognized that the greatest use of our technology and talent, and the strongest chance to unlock our company's value, rests in providing biosolutions to major industries worldwide that need fresh approaches to making products aligned with their corporate sustainability goals; for Calyxt, this opportunity is huge. As you might remember, Calyxt creates high-value plant-based chemistries for customers by integrating our proprietary PlantSpring technology platform with our BioFactory production system. PlantSpring rests on experience gained from over a decade of engineering plant metabolism. It's a seasoned foundation built with our proprietary systems, our tools and technologies, our broad intellectual property portfolio, and a growing set of artificial intelligence and machine learning, or AI/ML, capabilities. Through an efficient process that goes from laboratory to pilot, this platform delivers innovation, letting Calyxt guide a customer's plant-based chemistry needs through our design, engineering, and verification development process. Compounds derived from PlantSpring are then manufactured via a proprietary BioFactory. The BioFactory captures the potential of plant cells within a multicellular matrix structure, which is our proprietary Plant Cell Matrix, or PCM. For production inside a bioreactor, the PCMs are paired with growth media. Its plant-based basis, thanks to our PCMs, its capacity to make complex plant-based chemistries, and its modular design and geographic flexibility set the BioFactory apart from other production systems in use across the SynBio and plant-based industries at present. Given Calyxt's iterative AIML capabilities to enhance both PlantSpring development and BioFactory production. The company is set up to be a supplier of distinctive chemistries that likely cannot be made through more traditional SynBio production processes; this strategy marked a shift in our focus away from agriculture toward large, innovative end markets, such as cosmeceuticals, nutraceuticals, and pharmaceuticals. Everyone wants plant-based chemistries to swap out materials and inputs that aren't as sustainable in what they make or how they make it. For Calyxt, that's a big chance to grow. Something worth highlighting: with the BioFactory business model, we put the customer first and let demand pull us along. We judge opportunities against a set of criteria — things like the plant-based chemistry involved or what a potential customer actually needs, plus how well our BioFactory can make it, how big the customer's demand pool is, how quickly the customer will adopt it, and what financial returns we'd see. That method helps us make sure we're picking the compounds from customers that carry the most potential to succeed, for both the customer and Calyxt, at this point in our business; by the close of 2022, our target is having 2- to 4 plant-based chemistries in development; when it comes to commercial production, our plan is to run the BioFactory in an asset-light way, which helps reduce the risk involved in reaching production at scale; we can accomplish that either by bringing in third-party infrastructure partners for at-scale BioFactory production or, since the design is modular, by placing a unit inside a customer's facility. On top of that, our business model could generate cash flow across our targeted 36-month development period, with more product-related revenue and cash flow coming afterward. We've set Calyxt up for growth and scale by concentrating on 2 main areas: pushing our technology forward and bringing the right people on board so we're positioned to succeed. Starting in the fourth quarter of 2021, I'm happy to say, we've hit a number of important milestones. We shared further milestones around commissioning our BioFactory production system. That covers commissioning our first pilot BioFactory, done on schedule, an important initial step on the way to at-scale commercial production. We're still gathering and analyzing data from this product facility and have started putting additional AIML resources to work at the pilot facility, which should shape future decisions and help shorten test cycles and development timelines. We also shared substantial progress in sustainable discovery and development of base molecules in our BioFactory. Output from our targeted metabolomics analysis pointed to more than 15,000 chemical signatures — among these signatures were molecules already known as well as ones not yet characterized, along with building block precursors, which are chemical compounds that take part in chemical reactions producing other compounds. These chemical signatures make up a baseline library Calyxt can draw on to produce valuable compounds inside our proprietary plant-based BioFactory production system, and it probably accounts for just a fraction of all the plant-based chemistries our system can carry out. We put money into new hires who are sustaining our business's growth. We brought on our new SVP of Business Development, Gerry Nuovo. Gerry carries over 30 years of experience across the specialty chemicals and biotechnology industries, plus wide-ranging experience building multimillion-dollar income streams in cosmeceuticals end markets, personal care and home care among them. Dr. Vijay Gullapalli came to Calyxt as Vice President, AIML and Data Science. Vijay has close to 25 years of expertise building solutions for companies in a wide range of sectors, drawing on his background in data technology AIML. Also, Peter Ball came aboard as Technology Licensing Leader. Pete possesses roughly 35 years of experience in law and technology licensing, and his focus will be on pushing forward our licensing efforts and platform technology, covering IP tied to gene editing in plants along with our crop innovation portfolio. We're likewise happy to have Seth Dobrin, who serves as Global Chief Artificial Intelligence Officer at IBM, join our Scientific Advisory Board. Seth carries substantial leadership experience plus a proven record of transforming businesses via data and AI. His deep know-how in delivering AI-driven business solutions to large worldwide corporations will prove valuable as we keep building and enhancing the AIML capabilities of our Class 3 platform and BioFactory production system. We keep moving ahead with talks involving new prospective clients in the cosmeceutical, nutraceutical and pharmaceutical industries — sizable and inventive sectors that offer meaningful growth prospects for Calyxt; since we first announced our new strategic initiative into SynBio back in October, we've been pleased by how broadly large companies in our target industries have shown interest.

From that point on, we've been talking with a broader set of businesses, and at the same time we've made real progress with a chosen handful of prospective clients regarding contract signings for our services, which should ultimately bring in new revenue. Turning to the numbers: during the previous month, Calyxt managed to complete an underwritten offering registered with the SEC, generating gross proceeds of roughly $10.9 million prior to subtracting underwriting fees along with other operating costs. This capital raise bolsters Calyxt's financial standing as we strive to expand operations and unlock value. What sits at the core of our strategic push into SynBio is our belief that industry's future rests upon sustainable manufacturing of plant-derived chemistries. Calyxt holds a rare chance to transform the way the world utilizes plants. We concentrate on innovating where consumption of limited resources meets our planet's sustainability. Today's global economy cannot be sustained, as shown by indicators including carbon pollution, water scarcity, and soil erosion. A large number of businesses and buyers are turning their attention toward goods that are sustainable and feature plant-based chemistries that are environmentally friendly. Over 20% of the world's 2,000 biggest corporations have pledged to reach carbon neutrality. To accomplish that objective, we think these corporations will have to fold client-based solutions into their operations. Calyxt, together with our proprietary PlantSpring technology platform and BioFactory production system, is uniquely positioned to satisfy this demand. In a world aiming to move toward more sustainable solutions, plants are highly diverse and singularly able to generate numerous chemistries that no other method—microbial fermentation included—can produce. Close to 80% of classified natural compounds originate from plants, and certain estimates indicate that over 1 million compounds remain undiscovered; building on known compounds and uncovering new ones represent opportunities for our company. Plants sit at the heart of our PlantSpring technology platform and BioFactory production system. Our scientists are specialists in engineering plant metabolism and have proven this ability repeatedly across numerous plant species. Such expertise yields a distinctive view of plants' power and how they might be harnessed to shape our future, giving Calyxt an expertise edge over competitors. Right now we deploy AI/ML during the early phase of our development process. As time goes on, we anticipate extending these capabilities deeper into that process by applying knowledge obtained from prior activity together with predictive analytics to prototype quickly and deliver feedback, speed up completion of the development cycle, and assist in reducing risk tied to commercial scale-up. On the production side, our BioFactory employs a multicellular Plant Cell Matrix structure, or PCM. These PCM structures get positioned within the bioreactor, and growth media surround the PCM structures to supply nutrition; this sets our process apart from alternative methods that call for fully submerging cells in growth media. The BioFactory has a modular design, built so that it can keep making plant-based chemistries without interruption, which gives us flexibility when we're producing chemistries for several customers simultaneously; taken together, PlantSpring and the BioFactory form a production system that sets us apart for high-value, innovative, plant-based chemistries driven by what customers demand. Our PlantSpring technology platform builds on many years of know-how in engineering plant metabolism, drawing on a range of tools and a growing set of AI/ML capabilities, and it sits under the protection of our extensive IP position. With the PlantSpring platform, our aim is to unlock what plants can do naturally — they are the original biological systems — and to bring to market commercial innovations that yield unique-based chemistries from plant species, among them rare or domesticated ones, in a way the company believes is more robust and more sustainable than alternative production methods. We embedded our first AI/ML capability within PlantSpring to help us pinpoint targets for editing particular genetic pathways and to boost efficiency and speed. Plants and their DNA hold an enormous quantity of information. Once that is paired with our deep scientific experience and the vast amounts of data gathered throughout our history, which include a large proprietary database of genomic information spanning numerous plant species, we can search our extensive data store for insights, which makes a rapid development process possible. We also intend to grow and leverage this expanding data set in our future AI/ML development efforts. Looking ahead, we intend to fold AI/ML techniques even further into our development process, which enables learning and adaptation from knowledge gained through past activity, the creation of new data, insights and connections linking known and unknown pathways, all with the goal of accelerating development cycles, lowering development costs and enhancing our rapid prototyping capabilities. Such activities will additionally help uncover new pathways or new plant-derived compounds for future commercialization efforts, and will help lessen the risks tied to commercial scale-up. Our proprietary PCM structures give us a competitive edge over single cell plant and other cellular production systems. Put simply, a PCM is a small cluster of plant cells that cooperate to mimic the metabolism of a whole plant. Thanks to this PCM structure, we can achieve growth without constantly submerging media, and light is not required. Compared with a batch and other production systems that struggle with scaling or growth over time, the PCMs are more stable and produce the target chemistry continuously. The BioFactory production system takes advantage of these PCMs, which receive a growth media on a periodic basis that supplies the nutrients needed to support growth and generate the target chemistry. Over time these PCMs reproduce, raising the amount of biomass inside the reactor and producing the target chemistry, which the PCM may excrete or which may be harvested afterward. We believe that because of this production methodology, the BioFactory has the potential to rank among the most sustainable plant-based production systems across industries; it relies on no fermentation and there are fewer of the sustainability challenges that come with other controlled environment production systems. To give you an example, we anticipate that our system will require less energy, use less water, and generate fewer unusual gases. Additionally, we expect the BioFactory to experience minimal idle time between production runs, since it manufactures these plant-based chemicals throughout the entire year, and a bioreactor is shielded from numerous negative weather impacts that are usually linked to conventional farming. Through our PlantSpring platform, which consists of 3 main phases called design, engineer, and verify, we employ a streamlined development approach to bring about innovation. During the design phase, we utilize AI/ML to pinpoint pathways capable of creating the target and to devise a technical strategy for producing the desired compound; in the engineering phase, we generate modifications within the plant cells; and in the verify phase, we rely on a mix of analytical instruments to confirm that the resulting compound satisfies the customer's requirements. We project that the standard duration needed to finish this designed, engineered, and verified process is 12 months, after which the validated chemistry will move forward into pilot production. Following that, we think the usual development period from when the pilot stage begins all the way to commercialization amounts to 24 months. A few compounds might reach the market faster, whereas certain sectors, like pharmaceuticals, are anticipated to face a lengthier route to regulatory approval. When considering cost and time, we anticipate that the customer will leverage their own knowledge to handle formulation and regulatory issues.

When you pair that with the design engineered verified stages within development, the timeline we currently project for Calyxt to reach commercial availability sits at roughly 36 months. That gives customers a development cycle with compelling speed to market; and as we expand and further deploy our AI/ML capabilities, along with systematic learnings as additional compounds move through development, we think this cycle time could be accelerated even more. At this point I'll hand the call back over to Bill so he can walk through our business model, share updates on customer acquisition activities, and cover company financials. Bill?

Thank you, Michael. To pinpoint and assess opportunities, we follow an approach centered on customers, which helps make certain we pick, from those customers, the compounds offering the strongest chance of success given where our business stands today. Factors we weigh include things like the plant-based chemistry that prospective customers require and how effectively our BioFactory is able to make it, how large their demand pool is, how quickly they adopt, and what financial returns we see. This method helps make certain we pick, from those customers, the compounds offering the greatest chance of success given where our business stands today. We aim to develop 2 to 4 compounds during 2022. Once a compound to be produced has been agreed upon with the customer, that customer might cover development costs across the design, engineer and verify process. We anticipate the customer will handle any regulatory or formulation matters concerning the chemistry we will produce. At scale, production will probably be carried out by our infrastructure partners on our behalf or, as recent interactions have taught us, the customers might want to produce the compound directly in their facility. We anticipate the customer will buy the compound from Calyxt via a supply agreement once at-scale commercial production is reached. This business model could bring cash flow at the start of the agreement and across the whole development cycle, with cash flow coming from product sales once commercial production is achieved. Given the criteria we apply when selecting compounds to develop for customers, we are naturally targeting plant-based chemistries that are high-value and low-volume with large demand pools, which enables a rapid revenue ramp once commercial scale is reached alongside an attractive margin profile. For the compounds we produce for customers, we are targeting gross profit margins in the mid-double-digit range, which enables a quick scale-up of our cash flow after launch. This business model has found resonance throughout our ongoing business development discussions with potential customers. In the near term, our efforts to activate customers focus on a market segmentation where we believe our current capabilities give us the best opportunities to win, including cosmeceuticals, nutraceuticals, and pharmaceuticals; these industries represent large end markets with customers that have current business needs to source finite plant-based chemistries and are known to be fast adopters of innovation and are actively seeking to reduce their carbon footprints. Since our Q3 2021 earnings announcement, we have kept up conversations with a select group of potential customers whose plant-based chemistry needs align with our selection criteria. Feedback from these potential customers has been positive; we believe we have a compelling offering for our target customers, and we are working to secure our first contracts for the BioFactory. In summary, Calyxt is poised to deliver plant-based chemistries with compelling financial returns that assist customers in achieving their sustainability goals. When you put PlantSpring technology alongside the BioFactory production system, what you get is something truly differentiated. That includes the plant-based underpinning, our proprietary PCM, and the modular design of the BioFactory, which in all likelihood lets us sidestep major capital expenditures on the way to commercial production, along with a distinctive financial model. At the outset, we're going after the cosmeceutical, nutraceutical, and pharmaceutical end markets — each one innovative in its own way, each one large, and each one offering substantial growth potential. Our approach is driven by customer demand when it comes to developing high-value, innovative, sustainable plant-based chemistries. By the close of 2022, our goal is to have 2 to 4 plant-based chemistries in development, and our business model reflects an asset-light approach with potential for cash flow throughout the targeted 36-month development period and with a rapid scale of product-related revenue to follow. Now, on to financial results. Earlier today, we put out a press release covering our fourth quarter and full year 2021 results, and this afternoon we also filed our Form 10-K for the year. To start, cash, cash equivalents and restricted cash stood at $14.4 million as of December 31, 2021, a figure that includes net proceeds from selling roughly 1.4 million shares of common stock through our ATM share issuance program. Within that December 31, 2021 cash balance is $3.9 million of net proceeds from those sales, and an additional $200,000 in cash came in during early January 2022 once those sales settled with the broker. Not included in the balance is the $10.9 million in gross proceeds raised in mid-February through our SEC-registered offering. Now let's move to the P&L. Revenue came in at $1.9 million for the fourth quarter of 2021, versus $13.9 million a year earlier, and for 2021 it was $26.0 million, versus $23.9 million in 2020. The year-over-year increase came from sales of the 2020 grain crop, which involved larger volumes and reflected better commodity prices in each case than what we saw in 2020. Looking forward, we anticipate revenues will fall meaningfully, a result of winding down our soybean product line and the business shifting away from its agriculture model toward becoming a synthetic biology company. Total operating expenses reached $6.6 million in the fourth quarter of 2021, compared with $8.1 million in the fourth quarter of 2020. That decline came from lower professional fees, reduced personnel costs, and restructuring costs that had been recognized in the fourth quarter of 2020. On a full-year basis, total operating expenses were $26.8 million in 2021, versus $32.6 million in 2020. Operating expenses, excluding $2.1 million of noncash stock compensation expense and $2.3 million of depreciation and amortization expenses, came to $22.3 million in 2021. Net loss was $7.1 million in the fourth quarter of 2021, or $0.18 per share, versus $13.4 million, or $0.37 per share, in the prior year period; for the full year, net loss was $29.2 million in 2021, or $0.78 per share, compared to a net loss of $44.8 million in 2020, or a net loss per share of $1.32 per share. For the fourth quarter of 2021, adjusted net loss came to $7.4 million, which works out to $0.19 per share, versus $12.2 million, or $0.33 per share, during the same period a year earlier, while for the full year 2021 it reached $33.2 million, or $0.89 per share, compared with $40.8 million, or $1.20 per share, in 2020. Strong management of operating expenses, along with gains realized from winding down the soybean product line, drove this reduction in adjusted net loss. A balance sheet strengthened by the $10.9 million in gross proceeds — before underwriting fees and other operating expenses are deducted — from the offering we closed in February now gives further support to our business plans; our intention is to stay disciplined about how we use cash, and we expect those offering proceeds to fund continued growth and scaling of our BioFactory business model as well as selective hiring meant to support progress and expansion of our AI/ML capabilities. Thanks to the successful offering of our common stock and pre-funded warrants, and taking into account our current business plan, we now anticipate cash runway reaching late 2022, which includes planned spending in support of growth and scale for our BioFactory business model; committed customer payments for licensing and product development as of today are included in that runway. Consequently, customer cash flows past those existing commitments, combined with actions under our control to keep expenses flat or under current levels, would help push our cash runway into the first quarter of 2023 and possibly further. For more specifics on our financials for the fourth quarter and for the full year 2021, please see our press release or filings with the SEC. I'll now hand the call back to Michael for his closing remarks. Michael?

Thanks, Bill. For Calyxt, 2021 was a year of transformation — one in which we established ourselves as a synthetic biology business in our own right. From the time I came aboard, we've readied this organization for expansion and scale, concentrating on pushing our technology forward and bringing the right individuals on board to put us on a path toward core success. Within a brief span, we've notched up a number of important milestones. Among them: bringing our BioFactory online, landing crucial hires across business development, AI/ML and technology licensing, growing our Scientific Advisory Board so that it now includes well-known AI/ML know-how, moving talks ahead with an ever-wider range of prospective new customers, and making our balance sheet stronger. Everyone here at Calyxt is working diligently to capture the value our company holds. And though plenty of work still lies ahead, I take pride in how far this team has traveled in so short a time. I'm eager for the momentum to continue and to bring you updates on how we're progressing down the road. Operator, that wraps up our prepared remarks. Kindly open the line for questions.

Could you go into more detail on a pair of points? First, to what degree are the molecules you're targeting ones the customers already know about, while you're discovering a novel way to make them? Or, alternatively, do customers approach you saying they want a particular effect, and then you must work alongside them to identify molecules that deliver it? That's point one. Point two: can you describe your customer pipeline in relation to your capacity and how much you're able to handle, plus what the interest level looks like? Also, from the moment someone signs an agreement to when you expect a commercially viable demonstration would be in their hands — just so we can grasp what the entire process loop involves.

Sure. Thanks, Laurence. Those are a couple of excellent questions. One point I'd highlight regarding your first question is that our strategy in this area is demand-driven alongside our customers. So when we engage customers, we ask them to point out particular compounds for which they want a plant-based and sustainable answer. Through our conversations, we're discovering that in the current environment — especially in our new end markets of cosmetics, nutraceuticals and pharmaceuticals — these customers in fact already possess and have pinpointed the molecules they require solutions for, yet those are either unsustainable at present and/or limited in supply, so they need a different production system to address that. On capacity, your second question, we're genuinely thrilled to have our pilot BioFactory commissioned at the close of Q4 in December. That BioFactory is 200 liters, quite comparable from a scaling perspective to what you'd encounter in the pharma sector. Looking ahead to 2022 with a focus on growth and scaling, what's great about the biofactories is that they're modular by design. They can process several compounds simultaneously. So when we work with customers who have particular needs, output can differ. And once more, as I said, depending on how many compounds are involved, it's definitely producible.

So I suppose the first thing is, maybe we could spend a second on geopolitics. This might be a bit early, but I'm wondering if you're noticing any effect when it comes to customer interest on either side of your business — whether that's plant trade or SynBio.

Thanks, Bobby. On the geopolitical side, these are certainly interesting times for all of us right now. As of today, we aren't seeing anything that's a direct impact. Clearly, this is a situation that moves quickly across the globe. What we are noticing, however, is that there's definitely a dedication to sustainability and solutions based on plants. What we've observed lately, and really across the past several years, is that businesses worldwide are devoted to carbon neutrality and sustainability. And so the response we're getting — as I said a few moments ago — the fact that our customers have pinpointed specific compounds they require, ones that need that plant-based answer, keeps getting stronger.

All right, that's helpful. Now, regarding the Q4 development agreements you're aiming to secure during this year — will each of those involve separate customers, meaning 2 to 4 different ones? Or is it possible some might overlap, with the same customer pursuing multiple projects?

That's a great question. In essence, it could go either way. From what we're hearing in our conversations with customers — and as I noted earlier — they've pinpointed the compounds for which they require a solution. Usually, they have a number of them that call for sustainable solutions. So we're working our way through which compounds represent the strongest match. You've heard Bill discuss our target product profile; we're extremely rigorous when it comes to choosing the compounds we take on. That said, we're observing several within individual customers, plus the possibility of one compound for a single customer.

All right, that's excellent. Now, for the final question at this point. Bill mentioned a cash runway that might stretch into the first quarter or possibly further, depending on extra activity that isn't factored into the roughly end-of-2022 cash outlook. So I'm curious: do both of those frameworks regarding the timeline for your cash runway account for financing the plant trade business — is there some subtlety we should be aware of there, given that it remains an active piece of what you do?

Excellent question, Bobby. The way we look at our runway, as I mentioned at the close of our prepared remarks, is this: thanks to the raise we've just finished, it carries us through the close of 2022, and that figure incorporates 2 key elements. The first is that it covers only committed customer cash. For that projection, we've solely included money that customers have committed to send us. So most of what we're able to deliver on the licensing side in particular — or product development, in the BioFactory's case — would represent additional upside on top of those figures. The second element concerns spending: it accounts for our investments aimed at further developing the BioFactory production system, broadening what it can do, and integrating AI/ML into it as well as back into the PlantSpring platform. That said, as we move ahead, we'll also have the chance to assess how much spending we should direct toward that effort. Yet once you combine every one of those components, it takes that runway ending in 2022 and pushes it into Q3 — pardon me, Q1 2023 and perhaps further, subject to several factors that are mostly connected to business development activity.

Just so I understand correctly, the plant trade operation isn't being scaled back so that SynBio can be funded — those efforts remain active on both sides of the company, right?

Exactly right. We brought Pete Ball on board during Q4 to concentrate on licensing, and he has kept at it, achieving terrific momentum with potential clients interested in licensing our technology's two components along with product we developed previously. That's all he does, and that's exactly what we required.

Nice work on how fast everything is coming together. Appreciate that. For my first question, I was hoping to get some clarity. You mentioned the commissioning is finished and from that angle, all is ready to launch. Is that right?