Microbix Biosystems Inc. ($MBX)

Good morning, everyone. Thanks for joining us today. We have an update with Microbix, who just put out their Q2 numbers this morning. So hopefully, everyone's had a chance to review those. With me on the call, I have Cameron Groome, CEO; Ken Hughes, COO; Jim Currie, CFO. I'm not sure if we're going to work off the presentation today, but as always, this session will contain forward-looking statements. If you'd like to know more about those, you can find them on the presentation on the company's website. And there will be a Q&A section. So feel free to enter any questions you have in the Q&A box. And with that out of the way, I'd like to turn the mic over to Cameron. Hi, Cameron.

Good morning, Deborah. Thank you so much, and good morning, Ken and Jim. I just want to thank everybody on the call for joining us for this update call this morning. As everybody will have seen from our results in Q2, it's not a particularly pretty quarter. The revenues were well below our engineered breakeven point, which is about $5.5 million a quarter of revenues. So not unexpected to show a net loss, but we are continuing to control our costs well, but net losses are not what we get dressed up in the morning for even if controlled. Some of that, and I'll ask Jim to speak to any specifics and address particular questions, but we have continued, of course, to see lower year-over-year sales into China, and that's a principal driver for the year-over-year comparability. We also saw some -- as we normally see in Q2 is not a strong quarter for our sales to the proficiency testing and external quality assessment agencies, our QAPs products. And we did see some antigen sales that we aim to land in Q2 delayed until later in the year that weren't made up by QAPs programs just due to some continued client delays. So it's a bit frustrating, and it doesn't reflect the level of effort and fine work that we're doing, exerting on now looking to secure new business. So if I reflect on where we'd hoped to be at this point, we're probably -- we're certainly well behind that level. And it took decades to get this business to $10 million in revenues. And we've been adding to our capabilities considerably, and we're actually looking to bring back about $10 million revenues within 12 months of a couple of major client falloffs. So it's a steep hill we're climbing, and I think we're climbing it very well. We started with building capabilities for our business and broadening those out, modernizing the antigen production, bringing in the skills and capabilities to create our quality test control products, our quality assessment products or QAPs. Then we have worked successfully on building the capacity to produce those at scale. And I think because of that, now we've really achieved the credibility as a result of both the capabilities and capacity we have successfully built. So what we need to demonstrate, I think, now to investors is the league that we're actually playing in. And I'm very confident that over the coming months, we are going to be able to demonstrate that. There are opportunities that we're pursuing that are at a scale that's unprecedented for our business that we can absolutely deliver on, and our prospective customers know that we have both the skills and the capacity to execute on that. So these are opportunities that really dwarf anything we've seen so far coming into our company, and we're very optimistic that we'll win that business now. As we look forward, we have to abide by our disclosure policies, which are -- we will only discuss specifics of opportunities when they are either secured by way of a firm contract agreement or begin to realize material revenues. And we're really at the cusp of some of those developments, I believe, and that's definitely forward-looking information. So you can't take that to the bank yet. But these are the things we're working on and why we get up in the morning. And we'll also talk about the ongoing work on our Kinlytic file as well, which is advancing well towards a supplemental biologicals licensing application filing, and that is moving ahead as a value creator. So we continue to have our business on the diagnostics side, playing at the highest levels of industry now and working with many -- multiple large companies and driving value on that front while we continue to, on a fully funded basis, advance a clinically and economically important therapeutics program. So that's very much where we are. We are quite optimistic about what we're achieving, and we continue to have a strong balance sheet to be able to execute on that, notwithstanding the quarterly losses we've seen over the past few quarters. So with that, maybe I can pass over to Jim to speak to any high points you'd like to call out about a quarter that's far from a high point. And then Ken, we'll then pass over to you for operations, and Deb, we can move into any questions from those on the line.

Great. Thanks, Cameron. Yes, as Cameron indicated, it was a disappointing quarter. I mean it's a tough comparator to last year. I mean we're looking at our numbers. And last year's first half was actually a record -- excluding Kinlytic license fees last year, the first half was the record half. So it's been a tough comparator this year against that. And a lot of that record was created by the distribution into China. So we've -- that reduction in revenues of about $2 million a quarter has had a significant impact on the business. Without that, we actually -- in the second quarter, we actually grew the rest of our business, excluding our Chinese distribution, 13% during the quarter. So there was some upside in terms of our performance to the quarter. Margins aren't where we want or targeting. Like, our target has always been in the 60-ish percentage range, which we achieved last year in the quarter. This year, lower volumes, we've got fixed manufacturing costs that we're absorbing within our lower volumes. So that's leading to lower margins at this point in time, higher cost of sales. From a balance sheet perspective, still strong. Cash, $8.1 million. Our cash burn during the quarter was about $1 million, and that's sort of where we see it over the next few quarters as well.

Yes. And that -- Jim, I'll just mention that, if we look at the traditional cash flow from operations, our operating cash flow is about $300,000. So when we're talking about burn, we're also including capital investments activities and financial activities, including debt repayment and a prudent ongoing level of share buybacks.

Yes. So we've got -- while we -- on the cash front, I mean, while we have benefited from interest-free loans from FedDev over the last number of years to support the growth of our business. We're now in a position where we've started -- during this quarter, started to repay that debt. So that's something new in terms of our cash spend that will occur over the next 5 years, as we got 5 years to repay that no interest loan. CapEx, as Cameron said, we're -- not only our OpEx, but on our CapEx, we're trying to control spending. So we're making investments in capital equipment where we need to. The nice-to-haves, we're delaying at this point in time. So we're monitoring the spend. We're continuing to spend on our NCIB. Our year-to-date spend is about -- we bought 1.5 million shares at a cost of $361,000. I think we believe that continuing that spend is important for the business and to help maintain our stock price level during a weaker time.

Yes, during an interval where we are rebuilding, we certainly don't want to see a situation where anybody starts to get abusive in share price. I think we'll certainly will be -- I'll be looking potentially at some further purchases personally, and that expresses our confidence in the business, not only individually but collectively through the NCIB.

Great. So kind of summarizing where we are right now. I mean, as Cameron and I have both indicated, controlled spending. We're making sure we're investing our funds and spending our money in the right places. We have started to see some orders coming in from China. So that's a good sign. We had budgeted to see that. I think we had budgeted to see that happening a little sooner. However, it is starting to happen now. So good outlook there. We're maintaining our capabilities. We want to make sure that we keep the staff that we have today with a strong employee base, and we've got growth expectations that are going to require people with these skill sets as we move forward. And we've indicated we've got a strong balance sheet. We've got the cash. We've had the cash to get us through this hurdle at this point in time and to invest as we move forward. Ken, do you got anything?

Sure. I've got plenty. The group knows we've been building operations for a while here, and Cameron alluded to the fact that we're building both capacity and capability. So in terms of capabilities, we started from a position of classical virology and pathology. We've added synthetic virology and pathology and recombinant now capabilities here as well, which is a pretty unique portfolio of capabilities from a capability perspective. From a capacity perspective, we've been building semi-automated and automated procedures, scalability left, right and center really to give us the capacity and capabilities to support the growth going forward. That has not changed. Everything has been implemented and is operating extremely well. From an operational side, we continue to use operational excellence to increase yields in specific products to reduce costs and ultimately drive margins. And that's really what -- that's what we've been doing. We've been doing successfully. We're adding to our portfolio of QAPs. We're continuing to improve our antigens capabilities and going on from there. Our electronic quality management system is getting more and more sophisticated and more and more integrated which is improving efficiencies and dovetailing nicely with our enterprise resource planning software. So all the things we said we're going to do from an operational perspective have been executed where we have unique capabilities, I would say, and some global leadership in a number of areas, including QAPs and antigens and certain specific ones from within there -- from within those portfolios. And we have plenty of capacity to scale as these new opportunities come online. So we're ready to go. I can't speak highly enough about the staff we have here, the scientific procedure manufacturing, quality control, quality assurance, even the finance people are quite good. So we're doing really well from an operational perspective. I should have mentioned IT as well. So we're really doing very well. I have nothing negative to say at all. We're ready to accept the opportunities as they come to us. So that's great from an operational perspective. Perhaps a comment on Kinlytic as well. Kinlytic is moving forward as it should. Our relationship with Sequel continues to be strong. Scale-up and validation of drug substance manufacturing is underway. We're working with the drug product CDMO now as well and the time lines have not changed. We're moving forward. We expect material, well, events over the next little while and submissions in 2027 and building that market in 2028 has been disclosed. The relationship remains excellent. The scientific component is moving ahead. And I think that's something that's very exciting for the future. Once we come back for the catheter clearance market, there are other markets to get involved with, too, and we're talking to our partner, Sequel about those indications as well and whether or not we could bring some manufacturing component to Canada. But that's, again, a forward-looking statement right now. We're working towards getting the supplement to the BLA filed and then start building the market for catheter management in the U.S. and then subsequently in the rest of the world. And that project is on schedule and on course.

Yes. Very good. No. Thank you. Thank you, Ken. And I'll just reemphasize, this is -- major customers really need to see the capabilities and the -- both the capabilities and the capacity if they're going to rely on Microbix as a critical sole source supply chain partner we have to demonstrate all this. And we have regular stream of major companies now coming in and doing multi-day quality systems audits of our capabilities and our capacity to ensure that they can trust us on these matters, and we pass those with flying colors and are now have access to a scale of opportunity that would have been unthinkable a few years ago. So that's not to give assurance we'll win that business, but it gives us assurance we are -- certainly, in our view, the best partner for such companies. And I think that's a view that they're coming to share more and more. So I'm increasingly optimistic that we'll be able to -- when the time is right, make some very interesting business disclosures. So justified optimism. It's not naive optimism, but it's justified. And those of you who visited us see both the human resource capabilities as well as the technology and the infrastructure we have to be able to deliver on these opportunities. And certainly, there's no slowdown in the technical advancements in the global diagnostics industry, whether that's on molecular diagnostics, multiplex tests, point of care, all this is happening and being driven, and we're really very much at the heart of it. You'll see my reference to the logo -- our logo in the corporate presentation where we're really at that intercept point between our customers and their target markets, and that's never been more true than it is today. So thank you. Not a financial quarter that we're going to be putting into the record books by any means, but I think this is turning out to be a really fun year, and I'm very optimistic for the second half of this year from a fundamental developments and value creation point of view. So I think that's probably a great place to leave it, Deborah, and maybe we can move over to questions. I see a few in the queue. And if you'd like to read those out, we'll do our level best to answer them.

Sure. I had some via e-mail. So I'll start with those ones. So this antigen decrease was a result of a $2 million reduction in sales to the company's distributor for China believed due to reduced incidence of respiratory diseases requiring testing and tighter test access and reimbursement policies. I thought your sales to China for an entire year were $2 million. Do they all historically come in Q2?

No. Our sales in China in 2025 fiscal were closer to -- sorry, 2024 fiscal, I should say. Thank you. I can see Jim's brow starting to furrow as he began to correct me. For fiscal '24, we did about $7 million into China in fiscal 2024, and we were on track to do north of that, and we're at $8 million plus run rate through the first half of 2025, and that really fell off quite abruptly. I think we're certainly speaking to our partner that distributes into China for us, they're not exiting the market, and they don't see it as gone. There was just a very abrupt slowdown in the incidence of walking pneumonia or white lung as they called it in China. coupled with restrictions on people going to multiple hospitals or clinics and having being tested multiple times. And just -- as greater trust perhaps is being developed in that market, people were wanting to make sure the test they got was actually working and accurate and doing tests -- retesting. And so we've got a bit of a double whammy there along with the normal cost control pressures that we see all around the world. So that slowed things down, but we see as end users there work through their inventories, we see reorders happening, and we're already starting to see that, but it's not been at that high level. So we were budgeting a little over $1 million into China this year. I think, we're below that level so far in terms of the -- I know, we're below that level in terms of the run rate so far, but we'll see when that comes back. And it could snap back as early as the fall or that could push out a little bit more. But where we -- where the new normal becomes in China is the question. Do we look for $1 million, $2 million, $4 million? These are the questions we're trying to benchmark with our partners now or is there another outbreak and it snaps back to a much higher level than that? Either way, we're ready for it. We can deliver on the volumes as may be required, but we're not counting on that as the big growth driver. Our big growth driver remains QAPs in the near term, nearer term and Kinlytic going out of that 2028 time frame that Ken had indicated. Jim, did you want to speak further on that question? Deborah, do you feel we've answered it?

Yes, I had a follow-up, but Jim, do you have extra color, feel free.

No, no, I didn't have any -- I think, Cameron, you covered it correctly. I mean I think we were seeing $2 million a quarter for a period of, I guess, 6 quarters. Now that was not historically the level that we've seen in terms of revenues from China. There's no question. I mean, it -- they really came up quite substantially in fiscal 2024. Prior to that, sales were probably in the $2 million to $4 million annualized with our Chinese distributor. So we did see an uptick in '24 and '25 -- in the first half of '25.

Yes. And that was not evident to either us or our partners or the manufacturers in China that, that was going to be a temporary issue. It looked like there was an ongoing need for that testing and nobody saw that slowing down as abruptly as it did.

And is there seasonality in that typically?

There is some seasonality in respiratory infections generally, it tends to be winter months. But that's a tendency, it's not a hard line. Sometimes you'll see, for example, COVID as more of -- now, more of a fall incidence as there's a bit more of a back-to-school driver necessarily than a winter one. We see some of the gastrointestinal infections occurring more in the spring and summer time, food spoilage and camping and so forth. So there's all these interlocking waves. And as we continue to grow our business, we're seeing different sources of that volatility. And that -- we see that also evening out as we add additional large clients.

And the issue of tighter tests across -- or sorry, tighter test access and reimbursement, what has the bigger impact? That or reduced respiratory diseases?

Tough to know exactly. I believe for us, it is the incidence of respiratory disease more, but we've also seen -- we're also told there's been a consolidation of the number of test manufacturers has been reduced in China with a number of the more marginal players falling away.

And then a follow-up question to that. Given the tight access and reimbursement policies, does that mean that even if respiratory diseases rebound, sales to China will be substantially lower than in years before the drawdown?

Tough to know. The products we're selling into China are quite unique. We are the global leader in the manufacture of those antigen products. So there's always a question, is there a domestic manufacturer? I don't think there's anybody that has either the purity, the capacity or the economics that we have. And we're not -- we don't have marble fountains in the courtyard and gold plates washrooms. We do run a frugal cost base in our organization, even though our science is excellent as is our quality. So I don't think there's a real ability to undercut or to deliver the same quality of product. And people in medical devices manufacturing, by definition, should be conscious of quality as well.

And when will you know if your Chinese distribution partner will want to resume buying antigens for this year's [ respiratory levels? ]

They already have, but at a lower level.

Okay. And?

So it's a question of inventory at 3 levels. There's inventory at the end user level, there's inventory at the distributor level and there's inventory at the Microbix level. So as we see the latter 2, the end user and the distributor inventories deplete, that's when our inventory gets pulled out.

And you've seen orders in both Q2 and Q3?

In Q -- Jim, when have we booked those orders? I'm just losing track here.

In Q3.

Q3, yes. Q3, thank you.

Moving on to QAPs. Have any of your large QAPs clients recently commercially launched their assays or soon to launch their assays? And what's the expected revenue impact for Microbix with these launches this year and beyond?

That's a little more specific forward-looking than I want to get into. We have customers with current assays that we're supporting. And oftentimes, that comes into the onboard kits where we're supporting the validation of new sites and training of operators at new sites. And that's for an existing assay, if we're not already in the cartridge or in the kit, that's, I think, where we're winning good business and business prospects there. And for assays that are now being developed, that's where we have the opportunity to either be included in the boxes of test cartridges as an external control to swab, for example, or be included in the cartridge itself as some of the critical biological materials in the cartridge. And both of those are moving forward. The onboard kits opportunities, typically, those are 6-figure opportunities, but over time, they move into 7 figures across multiple assays with clients. And some of the other opportunities range from 6-figure to 7-figure to even some 8-figure opportunities that we're looking at. Now, those don't go from 0 to 100 all at once. And this is where there may be disclosures whereby we're talking about a large project, but that may involve development revenues in the first year, validation lots and prelaunch stocking in year 2 and full and growing commercial sales from year 3 forward. So these are big projects and big projects don't happen, don't go from 0 to 100 overnight.

And have you seen any cancellations on the QAPs side in terms of?

No.

And then -- QAPs revenue?

I like that answer. That's a quick answer. No.

It's a good answer.

Yes.

Previously, QAPs revenues were about $1.6 million a quarter. This quarter, $0.6 million. Will this be a normalized level moving forward? Or do you expect things to normalize back up to around $1.6 million, and what's the time?

Yes. No, that's -- if you -- I don't know whether you call it seasonality or not, but we've got one of our largest customers on the efficiency testing side has 3 events a year. And it just -- it happens in our Q1, Q3 and Q4, but nothing in Q2. And those events are anywhere from $1 million to $1.3 million. So that's the reason why there is that dip in the second quarter. It will definitely bounce back up in Q3 and Q4.

Absolutely, yes. The way some of these proficiency or testing or external quality assessment schemes work is that the clinical labs will receive a box of blinded samples in a disease area 3 times a year and not 4 times a year. So we're shipping to our client, the agency running those schemes, 3 times in the calendar year. And as Jim indicated, that happens to land in -- revenues for us in Q1, Q3 and Q4. Now as we gain additional clients in that category that may have different timing of shipments, and we increase our sales to the test -- major test manufacturers, in the QAPs category. And we increased our sales at the B2C level with the clinical labs, those don't have that sort of periodicity associated with the 3 shipments per year. It's more regular. So that starts to smooth.

Got it. And then, where you're supporting QAPs customers with onboard kits and validation at new sites, are these assays approved or still in development? And if approved, does this represent recurring revenue?

Those would be for approved assays by definition because they're rolling out at clinical sites that need that training validation -- new onboarding or validation. So there are 2 categories in the onboard kits. For new sites, that is onetime business, but for the regular retraining that needs to happen and for training new technicians due to the turnover that inevitably happens in any industry, staff turnover, those are recurring revenues. So there's both.

Okay. I've got one last audience question here. Just going back to Kinlytic. So I understood that revenues from Kinlytic would start in 2027 and now hearing 2028. What's caused the delay?

I don't think there's a delay per se on this. We've spoken to a filing in the second half of 2027, followed by an FDA review and then the product launch should happen in 2028, exactly where in 2027 and where in 2028 is where there's some flex in time lines. And part of that, too, is what is the exact timing of the BLA filing and how fast does the FDA review it. Ken, I don't know if you want to add to that color.

Yes. It may well be the case that there's revenues in 2027. But at the end of the day, I'll preface my comments by reminding the group that we do have an approved regulatory file with the FDA, and we have no chance of clinical failure with a product that has been successfully used in the clinic for decades. Notwithstanding that, it's a nontrivial activity to set up new manufacturing, both for the drug substance and the finished drug product and all the analytics that go with that. And all of those different areas are being done at contract manufacturing organizations with our partner, Sequel. It's all moving forward as it should. And -- but there's a level of complexity that we have to manage. The time line hasn't changed. And then, of course, when we make the regulatory file, then we have the vagaries of the FDA. Maybe they'll be expeditious, maybe they won't. But notwithstanding it, we're targeting for that approval time to be at the back end of 2027. Now obviously, we can't build the -- even though we've had discussions with user groups in the dialysis clinics and things like that and the regulatory agencies in Europe have a big pull for this particular product, they want this product -- until we have it, we can't start marketing it. So the building of the market will start in 2028. The work will happen in 2027, as previously described. There may be a little vagaries associated with the CDMOs and the complexity of the product and the FDA. But right now, there's nothing on the horizon. We're just moving it forward as we said we would.

Yes. And in my view from what I've seen, this is a market that is neither fully satisfied at present in terms of the quantities of product needed nor is it satisfied in terms of the service that it's receiving by the incumbent. So I'm optimistic we're going to see some pretty big switching happening quickly. And it's not a question of grinding out small client by small client, it's a question of moving big users over to our product quickly to give them better product, security of supply, some price relief. There's a lot of reasons why customers for Kinlytic would consider quickly adopting this product in their clinical settings. And whether that's hospital -- hospitals, chemotherapy, parenteral nutrition, dialysis, there's a lot of use cases for Kinlytic that are very compelling, in my view.

Yes. There's a huge pull for this product. There's only one incumbent in the marketplace, and they have supply issues. So we'll be securing supply with frankly a superior product.

And are you seeing any indication that Sequel is pursuing any of like approvals beyond the first indication?

Not as yet. We're all very cognizant of it. The current production methodologies are extremely well suited for satisfying the catheter clearance indication, which is less hungry for active ingredient. It uses 1/50 or less of the amount of drug active for a catheter clearance treatment than it would for a pulmonary embolism, for example. So we're -- one of the things that -- certainly we're going to continue to pursue aggressively with our partner, is Microbix taking a role in redeveloping the upstream to be more efficient, the upstream API or drug substance manufacturer to be more efficient. And that's just the exact kind of work we've proven our ability to deliver upon with our antigen products and Rubella specifically. We've gone through a very steep learning curve successfully on that and really, I think, have unrivaled expertise in how to do that. So that's something that will come, but you can't demonstrate comparability until you have in-dated product. So once we have acceptable drug product for -- and drug substance and drug product for the catheter clearance indication, then we have something to benchmark against on redeveloping the upstream for pulmonary embolism and the many other systemic applications for which Kinlytic has been successfully used. Ken, am I misspeaking?

Yes. I mean, Sequel has stated -- and many times that they have interest in all indications in all jurisdictions, and so do we. And we get a share of that action, of course. But the place to start is the catheter management indications where the amount of active is much smaller and is readily made in CDMOs, so we can satisfy a $0.5 billion market in North America than the equivalent in Europe before we actually start looking at these bigger indications, which are bigger markets but require 50 to 100-fold more active. And so I think that's really the -- I think, Sequel quite correctly is saying, let's get that foot in the door and then we'll build it from there. Now the technologies are related. It's just scalable. And I think, the group knows that Microbix is excellent at scaling things. And so we have set up ready to do that, and we'll bring that online at the appropriate time. And you never know maybe we'll be doing some manufacturing in Canada, you never know.

It sure would be nice.

It would be nice.

And just a follow-up question to the assay question I asked maybe 10 minutes ago. So why onetime business once a client assay is launched, are QAPs controls not needed on a repeat regular basis?

QAPs controls -- QAPs are needed on a regular repeat basis. It depends on the context we're looking at. In a clinical setting, ongoing quality management and external quality assessment is part of the laboratory ISO 15189 standard. So there is recurring business associated with that. Use of a kit to validate a site at the start of use, you've sold new equipment to that site, you're going to use an onboard kit to train the staff the first time to use the equipment, then you're going to use onboard kits and regular intervals to retrain -- refresh training, train new staff, but then you're also going to use controls at regular intervals as part of your quality management system to challenge the test and make sure there aren't any systemic errors. And then QAPs are also going to be used provided by the PT/EQA scheme providers, the third-party accreditation groups as a part of their sort of audit challenges of the labs to truly make sure they know what they're doing. So there's at least 4 instances where QAPs are used on an external basis, and then there are instances where QAPs materials may be used either as in-cartridge reagents or may be used as part of the manufacturing process, for example, our QUANTDx products that are quantitative materials may be used as part of the manufacturing QC release criteria for test manufacturer, and that's an area we're building as well where we're selling the QUANTDx products to people that either are developing a test or manufacturing a test. And that's a valuable touch point with customers as well, and we're already generating material sales and building up, making sure we have validated manufacturing for a growing range of catalog numbers in the QUANTDx line. Jim? Jim kind of furrows his brow a little bit, seeing our growth in inventory as we grow the number of seeds and cell bank materials and raw materials that we need to provide the range of capabilities our customers need. If somebody wants a 15-plex control for materials, we've got to have every biological target in that material, and we've got to have that banked and validated internally to be able to manufacture that transfer to manufacturing. So whether it's our product management and business development group, whether it's our R&D group, whether it's manufacturing, QC, QA, finance, you name it, everybody is hoping to deliver on these pending and WIP projects.

And if they're validated on your QAPs, will it be your QAPs they use as regular controls?

Sorry, could you repeat that question?

Sorry, I was just going back to the -- I think it's a follow-up to the same question. So if they are validated on your QAPs, will it be your QAPs that they use as regular controls? I'm assuming, it's.

Yes.

Yes. Okay. I think that's all I have for questions, gentlemen. Any final thoughts, anything we didn't cover today that you wanted to discuss?

Well, I think I would circle back to the concept of capabilities, capacity and credibility. And we built all 3 of these, and we are now engaged with leading companies in our industry for large business opportunities because we've done that. And we're not arm-waving stock promoters here. We're very much running and building an operating business and delivering on those opportunities. And that applies to what we've done in hardening and strengthening systems, improving yields on antigen products and capabilities to deliver there, creating the whole range of QAPs and QUANTDx products and driving forward with a very real drug development opportunity with Kinlytic. So this is all reality stuff, and we're committed to building real sustained value within the business. And I think we're building that, notwithstanding the vagaries of quarter-by-quarter and different individual customers and markets, the big picture shouldn't be lost of the value that we're creating within this business.

Got it. Okay. Well, thank you very much for your time. Sorry, Ken, did you something to add?

Yes, I was going to just supplement that a little bit. I mean we're getting audits. We're getting bigger and bigger clients, present clients, future clients and potential future clients coming in for audits and seeing what we do at Microbix and I know a number of the group have already toured Microbix. And we never have a problem. We always pass audits with flying colors because we're very serious about what we do from an operational perspective. Cameron also talked about the inventory side, because we're making a lot of seeds, a lot of products. You make a lot of products, you need a lot of seeds, and we're very good at doing that and managing that going forward. And people who come in to see what we do are impressed by that. We have a broad portfolio of scientific and technical capabilities that are scalable and are directly applicable to what we do. And I think everybody is starting to recognize that. And hopefully, we'll reap the benefit of that going forward, plus Kinlytic on the side.

Yes. And I think I'll just clarify 2 things. One, we're talking about quality system audits, customers wanting to know that if they're incorporating our products within theirs or as a companion to theirs that we can deliver on every aspect of quality, consistency, reliability. And I think barely a month goes by now that we don't have such a visit. So the activity level is very high. And then I'm just going to -- Ken said inventory, not infantry just in the case everybody was confused there.

Strange accent this guy has got, I don't know.

So lots of good things happening, and we'll continue to communicate that. And just as we have with regards to some of the scientific congresses that we discuss, whether it's EUROGIN, whether it's ESCMID, Passive, these congresses at which Microbix data is presented sometimes by Microbix and sometimes by Microbix customers or prospective customers. These are not lost on the industry. And I know that can be a little bit technical, but I do urge people to read between the lines a little bit about this to whom is that targeted. It's sure it's part of our continuous disclosure and it's great for everybody's investors, but that's also not lost on customers. And we recently presented at ESCMID some data on some very innovative work around RNA test controls, presenting in the last hours of the last day of the conference, and we had 35 people lined up to discuss our poster. So this is very impactful within the industry. And our news releases aren't just intended for investors, but they're also very widely read by industry and impactful for industry. So multiple constituencies. And you see some of the touch points as well. The podcast series, for example, gives us visibility with policymakers, and it gives us great touch points with leading experts in the field and makes it that much easier to win new business when somebody says, "Well, who's Microbix? Maybe I hadn't heard of them." And they go on and they see the technical excellence that we're delivering, the companies and thought leaders we're rubbing shoulders with. This, again, is that -- driving real value creation for our business and value creation that I'm dead certain we're going to see realized.

Great. Well, you've made good progress. It sounds like you got a lot of irons in the fire. I don't see any additional questions. We're coming up on the hour. So I think we can leave it there. If anyone does have any follow-up questions or would like a meeting, please feel free to reach out. Thank you to the audience for your participation and your questions. And thank you, Jim, Ken and Cameron for making yourselves available.

Thank you so much, Deborah. It's always a pleasure. And again, we couldn't do this out -- without the ongoing support of our many shareholders. So thank each and every one of you for your support of our work. We really do appreciate it.

Thanks, everyone. Have a [ great day. ]

Thanks, Deborah.

Okay. Thanks, everyone.

Bye-bye.