Cambridge Nutritional Sciences (LSE:CNSL) — Investor presentation

0:01 Good afternoon, ladies and gentlemen, and welcome to the Omega Diagnostics Group PLC Investor Presentation. Throughout this recorded presentation, you'll be in listen only mode. Questions are encouraged. They can be submitted at any time using the Q and A tab situated on the right hand corner of your screen. Just please simply type in your questions at any time and press send. Given the significant attendance on today's call, the company will not be in a position to answer every question it receives during the meeting itself. However, the company will review all questions submitted today and publish responses where it's appropriate to do so, and we'll make those available on the Investor Meet company platform. Before we begin, we would like to submit the following poll. And if you could give that your kind attention, I'm sure the company would be most grateful. Without further ado, I'd like to hand over to Chris Lee, CFO and Jay Rawr, CEO. Good afternoon.

0:47 Thank you, and good afternoon, everybody joining us for the latest presentation from Omega Diagnostics. Thank you for taking time out of your day to listen to us.

0:58 Some of you may be familiar with some of the content of this presentation as we delivered it some time ago, but we have now updates for the company and more importantly, a brand new focus direction for the organization going forward.

1:20 So the usual disclaimer and just some brief introductions for those who don't know me. So my name is Jack Gruel. I'm the chief executive officer of Omega Diagnostics. I've been with the organization almost eleven years this year. Previously, I was the managing director of the health and nutrition, division. I've been in diagnostics, most of my working life, having worked for the NHS in the past and then a variety of

1:51 diagnostic companies and and back into the NHS in London for a short period of time. I'm also heavily invested in the diagnostics industry itself, having been a director and past chairman of the industry association. Okay. And I'm Chris Lee. I'm the CFO. I joined the business in the autumn. This is my, third, AIM listed company. The last two have been Indigo Vision, which is CCTV company, and Super Glass, a glass wool manufacturer. Prior to that, I worked with KPMG and also within the poultry industry. Okay. So today and this afternoon, we're really gonna focus on a new vision and a more focused strategy for the company going forward. We would like to take the opportunity to update all of you on the progress we've made in restructuring the company since February.

2:48 A brief overview of the core business and, more importantly, our growth strategy, particularly centered around health and nutrition. A little bit of commentary on what we've been doing around global health, and then we'll summarize at the end. So just as a background for those people who aren't aware of the organization, we have been operating for over thirty years in the in vitro diagnostic space. We're a company that develops, manufactures, and markets diagnostic products into a global network of over 70 countries. In fact, the vast proportion of our revenues are outside of The UK. Currently, have two divisions, the health and nutrition division, which is the main portion of our business, that currently provides testing products in the area of food sensitivity, particularly for those healthcare professionals and patients that are suffering with chronic disease related to their diet and nutrition.

3:55 We also have a global health division that is focused on a very unique specialist test for c d four, a test that's used to monitor the immune system of patients living with HIV. So in terms of what we've been up to since we last spoke to you guys is looking at the business. Myself and Chris have been working quite hard in restructuring the business for future growth and future focus. We dealt with what was a loss making site based up in Scotland in Alva and sold that to a company called Acubio, which is a subsidiary of a Chinese company called Oriogene.

4:45 And And we then entered into a transitional services agreement that allowed Accubio to continue to manufacture products for us, mainly c d four. So we really focused on reducing our fixed cost base that was bleeding cash out of the business. Early April, we announced a trading update where we highlighted that our existing health and nutrition business grew by 54% over prior year, and that was largely driven by our laboratory based food print product sales, which grew 82% over prior year. We also conducted a strategic review of the c d four business and really came to the conclusion strategically that it was best that we look at the c d four business and sell the assets to interested parties.

5:44 And we have a number of those parties now engaged with advisers that have been appointed to progress that asset sale. We took the decision to exit COVID completely from a product fit point of view, cost and pricing point of view. It just didn't make sense to stay in that game any longer. We remain in disputes with the Department of Health regarding previous licensing opportunities, and there's been no further movement on that since we last spoke to you guys. And really going forward, it's there's a desire to invest capital in our health and nutrition business. That's where the growth opportunity is going forward, and that's where we would like to take the company in that direction.

6:39 So really with a new team at the start of this year, particularly myself and Chris, we wanna focus on substantial growth opportunities that I will highlight in the next couple of slides, particularly focused in around geography in The US and a complementary menu that drives this area towards a more comprehensive gut assessment testing profile. We were carrying on with the c d four market adoption that is getting good traction in the market with global agencies, NGOs, and aid agencies. But But as I said before, we are now looking for interested parties to take that off our hands and give it a home that it deserves to maximize its potential.

7:24 Okay. So having completed the sale of the site in Alva in early March, we've managed to reduce the cost base on this site by roughly about half about half. We still have an ongoing cost of around about 300,000 a month based out of the site to continue to support our c d four manufacturing and all the associated quality and regulatory costs that go along with that business. The so the second stage of our cost reduction plan really is linked to the withdrawal of the sale of our c d four business, at which point we will be able to reduce the cost base at very short notice, generally, a month or so to be able to save around about another £300,000 a month from the cost base. As said, we've exited COVID completely, and our focus now remains on trying to bring the the dispute with the Department of Health to a satisfactory conclusion.

8:20 And as we've said before, there's been no movement from the Department of Health in response to some questions that we posed to them on the February 8. So we are still still awaiting a response to to our last list of questions. And finally, recognizing the need to align shareholders' interests and management interests, One of the things we've we're planning to implement very shortly, actually, is a new long term incentive plan scheme for executive directors, which will be driven introduce a performance based reward system that's driven purely off share price going forward. So as you'll have seen from the announcement that we issued on Friday, we've already, in fact, raised £2,000,000 through a placing from from three shareholders, in fact, and we've launched an open offer at four p to raise potentially another £2,000,000.

9:15 So the difference between this time and the

9:18 the placing that we announced on the February 11 is that the placing funds the 2,000,000 from the institutional investors is already secured and is not subject to a general meeting, all although, obviously, the open offer will still go to general meeting scheduled for the June 6. As part of the the pricing of this particular offer, it's it's now at four p. The previous pricing was at five p. That's a consequence of the share price movement in the intervening period. Unfortunately, to get the the placing away, we've had to give warrants for a further 90,000,000 shares at four p, which are exercisable within the next eighteen months. And that was a condition required by the place if we were to proceed.

10:07 The safe the circular is planned to be posted to shareholders on the May 13. We've deliberately left a week or so's gap between the announcement and the posting of the circular to allow anybody who wishes to purchase shares in the market to participate in the open offer to do so. And the directors are, as before, once again, putting in 85,000 between as everybody's putting in at least £20,000.

10:34 Chris. Just a bit more detail about each of the product segments and our plans in and around that. So in terms of health and nutrition business, and as a reminder, our tests are typically used where there are chronic long term inflammatory conditions. Increasingly, that is being linked to poor gut health and the nutrition of the diet by particular patients. Largely, our ultimate consumers are out of pocket in terms of payments, they use that to maintain health and wellness going forward. We are a market leader in this area in terms of food sensitivity.

11:19 We sell our products and services in over 70 countries. And over the past, you know, couple of years, grown those revenues significantly over that period of time. It's a cash generative business. It's a profitable business, and that's what we hope to build on going forward. Good growth margins and significant opportunities for growth. And those opportunities lie in three core areas. We've seen the performance of the division over the prior year from f y twenty one to f y twenty two, largely driven by organic growth, by increasing our coverage in countries, maintaining our leadership position.

12:07 Our brand and our leadership is largely based on scientific education and building awareness amongst the healthcare professional community. What we are doing and working on is gonna couple that with digital technology that allows our customers, both patients and healthcare professionals, to better manage chronic inflammatory conditions and then base our marketing activities on that digital engagement through those channels and drive our brand awareness in all the markets that we sell into. There are geographic opportunities, as I said, ongoing optimization of distributors and business partners, both in existing territories and vacant territories.

12:54 China, with Food detective, which is our point of care in clinic product represents a big opportunity for us and that will return back to growth this year with orders forecasted in the second half of our financial year. And then The US itself represents the single biggest opportunity for foodprint, which is our lab based microarray platform that allows a health care professional to test the blood for over 222 different reactions to different foods of just a drop of blood. The US is a very health conscious, mature market that we feel by lifting an existing successful model, which is our CNSLab, which services healthcare professionals and patients directly in The UK and Ireland.

13:52 By lifting that, adding on our digital technology, we can address that market in a very unique way, a very competitive way, which could yield good results. In terms of menu, that's our third opportunity. We currently look at the immune system and its response to foods. We wish to expand our menu through the use of laboratory services to investigate the microbiome and the DNA of the patient that will allow us to give a much better, more comprehensive assessment of the gut health of a particular patient.

14:37 As I said, The US represents the single biggest opportunity for our CNSLabs service model going forward. It is a model that currently has competitors in there, but we believe we can differentiate from our tried and tested approach around education science coupled with our digital strategy to engage and empower customers in the in The US. The total market size is estimated to be between 50 and $100,000,000, and we really feel quite conservatively that we have the potential to realize 3 to £6,000,000 per annum in a three to five year time frame going forward.

15:26 And then when we look at menu, one area of great interest to health care professionals is the the microbiome. Increasingly, there's a greater level of understanding of how the microbiome or your gut flora impacts your gut health and the consequent impact on on chronic disease. There's been an increasing linkage of the microbiome and the diversity of the microbiome linked to many conditions such as diabetes, anxiety, and obesity. And we know from speaking to our existing customer base across the world that there's an increasing level of demand and interest in adding microbiome to the assessment of patients.

16:15 And then the third piece in the jigsaw that completes the triangle to give a comprehensive personalized nutritional assessment is your DNA. There are now an increasing level of mutations genes that are responsible for dietary function and gut health. And, really, when you put all three together in terms of your immune system, the food sensitivity products we have today, the microbiome analysis, and your your DNA assessment in terms of nutrigenomics, that gives us the real potential for addressing this market and maintaining and building on our market leading position going forward. To support that in terms of growth and expansion, we have already highlighted that we aim to move into a new facility just down the road from our existing facilities Ely and Cambridgeshire.

17:14 It gives us a much much much larger footprint and more importantly, a GMP manufacturing space with temperature and humidity control that allows us to maintain compliance on a regulatory front, but give us the capacity for future expansion and our growth plans.

17:37 So that's our health and nutrition division. We want to just talk briefly about global health and what we're doing in that area. The main product line within global health our VisoTech c d four advanced disease product. It's a lateral flow test, one of the most unique products in the marketplace, and that it is the only instrument free c d four testing product in the marketplace. And c d four is a test to monitor the immune system almost as a barometer to see how the progression of the HIV infection proceeds. Advanced disease, previously known as full blown AIDS, is very important in detecting as early as possible.

18:28 This market is really dominated by the world aid agencies and global funders. So people like the Clinton Health Access Initiative or CHI, WHO, UNITAID, and and the the funding organization within The US, which is known as PEPFAR. K. So in relation to our c d four business, from a standing start, we achieved revenue of 1,000,000 in f y twenty two, but our order intake was twice our order intake was twice that amount. We've had challenges, as we've mentioned before, in terms of scaling up the manufacturing from smaller batches to larger batches. This is linked to raw material stability, the commissioning of new bits of equipment, quality control procedures where our products have to be tested externally using live blood samples at Charing Cross Hospital.

19:23 And also, have, to a certain extent, been a little distracted in terms of COVID because some of the resources between c d four and COVID have historically been shared. We mentioned before that there was a requirement to invest additional money to try and optimize the yield, improve stability, and reduce the manufacturing costs, and was included in the 1,500,000 potential use of proceeds from the placing that we announced in February.

19:50 With the placing no longer going forward from that time, the board is not in simply not in a position actually to invest the 1,500,000 that we were looking to invest in relocating the product into the new Ely site, and in addition, is not prepared to take on these the risks of technical transfer. So the conclusion from our strategic review is that we've decided to seek offers for the business. Under Under our our transitional services agreement with Accubio, we can continue to operate c d four manufacturing from this site until the end of the year.

20:22 And we although the cost of doing so is still around about £300,000 a month. So there's a trade off here between how long we are willing to fund that business and the value we think we can get through a sale, and the aim is to try and conclude a sale within the next three to four months if possible. The other site has to return to to Accubio at the December 31, so we need also to factor into the transaction an an appropriate amount of time for an acquirer to be able to relocate the production capacity into their own site and get the necessary regulatory approvals. We're not sure what the value would be in terms of what we might get for the business. It's very difficult at this stage of the process to be able to put a number on that, to give you an indication of the amount of investment that we've made in c d four to date, it's about 6,900,000, which is tangible fixed assets around about 1.5, capitalized r and d over a number of years of just under 5,000,000, an inventory of around about £600,000.

21:27 We have appointed advisers. We have launched an information memorandum in the data room, and we received expressions of interest from a number, know, more than five, less than 10 of interested parties in looking to acquire the business.

21:46 So under the under the placing that we announced last week, we are guaranteed to get the £2,000,000 worth of initial funding. We may or may not get proceeds from the open offer. We may or may not see the warrants exercised within the eighteen month period. So the only additional funding we can count on today is the initial £2,000,000. What we are aiming to do here is to make sure we have adequate funding to be able to see the c d four business through to a successful sale. So 1,200,000 of the 2,000,000 proceeds is allocated sure we can fund the £300,000 a month for four months to be able to to sell the c d four business for value. The balance falls into working capital, and this is a this what we're trying to do here is make sure we avoid having to cancel a sale process partway through because we don't have sufficient funding to enable us to see it through to a conclusion.

22:43 The open offer, to give you an indication, the open offer launched in February yielded just under £500,000 of investment based on a five piece selling price, and we will see over time the level of take up in relation to the offer that we've launched last week.

23:02 The funding from the from the sale of the c d four business will be used and of the for the the exercise of warrants, actually, will be used to accelerate the investment in our health and nutrition product range and also in accelerating The US expansion. As before, we are not raising funds to repay the Department of Health. Position remains unchanged, but whilst the dispute is ongoing, our legal advice is that we're not required to repay the 2,500,000 initial preproduction advance, and in fact, that the company is entitled to recover additional losses incurred under the contract. And we have a little bit more clarity now that the Alva site sale has been concluded as to what the size of that loss may be, and therefore, the size of any potential claim should we wish to make one against the Department of Health.

23:55 Thanks, Chris. So in summary, you know, I've been quite busy since we we last spoke to you. We've been focusing on cost control and operational efficiency, and stage one of that was completed by exiting the Elva site. We're now in the process, as Chris described, of seeking offers for c d four business and ensuring it's got a home for the future of that product line, and more importantly, as a test that's essential for monitoring patients living with HIV in remote or inaccessible areas. We've also exited COVID nineteen completely. But going forward, the strategic plan is to focus on health and nutrition diagnostics.

24:42 And, you know, this is not just a lifestyle wellness test. It's increasingly understood within medicine that gut health and personalized nutrition has a vital role in dealing with the epidemic of chronic inflammatory disease that manifests itself in many, many different ways. As a leader in food sensitivity testing, we occupy a very central place in this area. And by adding the microbiome and immunogenomics, we can not only occupy the central area, but dominate the testing of gut health for years to come. So we

25:27 have, you know, a business that for many years has grown and grown substantially, a business that generates EBITDA and generates cash. It's now got the potential and, more importantly, the focus to grow organically, to grow with its digital platform enabling, to grow geographically, and to grow with its menu to truly offer a world leading comprehensive gut assessment panel. So thank you for your time, and thank you for listening. And And we'll head over to some questions, I think. That's great, Jack. Chris, thank you very much indeed for updating investors this afternoon. Ladies and gentlemen, please do continue to submit your questions using the Q and A tab just situated on the right hand corner of the screen. But just while Jack and Chris take a few moments to review some of the questions we received today, I'd like to remind you that recording of this presentation, along with a copy of the slides and the published Q and A, can be accessed via your Investor Meet company dashboard.

26:29 Jack and Chris, obviously, you know investors submitted a number pre submitted questions, and we've received a number throughout today's presentation. They are kind of, some areas, quite similar. So I hope we do manage to cover a number of these themes that have been raised. So if I may start with the first question. Why are you not proactive in keeping your shareholders up to date with what you're actually doing? It feels just silence and then RNS is twice saying that you're raising funds with little information for what, working capital for what. Perhaps you give a little bit more color

27:00 on that if you could. Yeah. I'll take I'll take that one. So we've said we've said historically that we will not provide a running commentary in terms of what we what's going on within the within the business, but when there is something to communicate, then we will do so. Obviously, it was disappointing to see the success the placing was voted down on the March 7, and we said at that time we would take some time to reassess the strategy and the implications of the placing not going ahead. We've now we've now done that, and we've set out in the r and s last week, but also in the circular that will be posted later on in the week, more details about the revised strategy, including the fundraiser that we've just concluded, the divestment strategy for c d four, and continued investment in our health and nutrition business.

27:48 We also provided a trading update for the year ended March 31 on the April 7, showing the growth areas, particularly in health and nutrition and in our footprint business that Judd referred to earlier in the present earlier in

28:01 the presentation. In terms of working capital, you know, whilst we said last week that we have £1,400,000 in the bank and overdraft of 2,000,000 that's not yet drawn, the the c d four business still is a cash drain. It still requires £300,000 a month of funding to continue to grow. We believe that continue to spend that in the near term, we can get that money back and more besides by virtue of a sale. And if that changes, then we'll have to reflect on on on that. But the company does need the additional funds to make sure that we can see a set a sale through to a satisfactory conclusion. Furthermore, the the bank bank overdraft is due for renewal in June. I had my first meeting this morning with the bank manager regarding the renewal process, and that will take a number of weeks to conclude. So right at this time, we have no certainty that the overdraft will

28:53 be renewed or will be renewed at the current level, particularly given that we will be posting a substantial loss for the financial year just ended as a result of COVID and the cost base that we have in the Alvar site. So we need the additional headroom to allow the to make sure that the business is fully funded to deliver on the new strategy. That's great. Thank you very much indeed. Couple of questions through the live panel around social media and Twitter, and one of the questions here reads as follows, and perhaps one for you, Jack, if I may. Why is your social social media presence so poor? Little, if no, interaction with the shareholders on social media like Facebook, LinkedIn, or Twitter. That that's a great question. And, you know, social media is a very useful tool and a good tool for interacting not only with shareholders, but clearly our customers and and other stakeholders like key opinion leaders for our business.

29:50 I think it's fair to say our our last, you know, twelve months, our social media channels have been probably dominated by a lot of shareholder chat, and and some of that has been, again, quite understandably on the negative side. And and that's had an impact on customers, suppliers, and employees. So we've been we've taken a step back in terms of looking at our investor relations and and looking at our strategy as how best we communicate more effectively with shareholders. And and presentations like this are key to that. And, you know, as as COVID restrictions lift off as well, you know, we'd be more than happy to do to face presentations going forward as well. We will use social media going forward to broadcast on news, but in terms of that regular interaction, we will look at other areas which can't be hijacked by by negative comments per se, which only serve a purpose of damage to

30:52 business. But, you know, if there are specific questions that investors have, please do contact us via Warbrook PR. There's an email address on the slide just there. We will do our best to answer every single question. That's great. Thank you very much indeed, Jack. Chris, if I may turn to you on this one. As of the 05/01/2022, does Colin King continue to receive any monies from Omega Diagnostics group of companies? If so, what is the outstanding financial commitment as of the same date?

31:25 Well, obviously, the settlement agreement with Colin is confidential between the parties, but it did include a number of deferred payments to facilitate the smooth transition to JAG as chief executive and also to aid cash flow for the business. Full details of Colin's package will be set out in the director's remuneration report the annual report. That's great. Thank you very much indeed. Again, Chris, if I may stick with you, there's been a number of questions and comments around the share price in today's presentation. The reads as follows. Given Omega Diagnostics has suffered over a 95% reduction in the share price, should the board take a pay cut? Well, the board recognizes the need to have directors' remuneration strategy and shareholders' interests fully aligned.

32:13 I don't think that's been the case historically, particularly with the use of share option schemes in the past, which I know is a bone of contention. Looking forward, we're implementing a new long term incentive plan where where shares will be awarded on the basis of achieving share price targets over a three year performance period. So in that case, our interests as managers and the

32:36 interests of shareholders will be wholly aligned determined by share price performance. Thank you. And I guess a natural extension of that question and probably not a surprise to come is why isn't the board investing their own money at these low prices? The board would like to invest. Wouldn't like to invest in in recent months, but in reality, we've been dealing with a number of issues which which have put us in a closed period, not least the funding and the sale of the c d four business. So now that we are issuing we issued our announcement last week and further details to be provided in the circular, the board are intending to invest, and you will see a commitment from each of us to invest at least £20,000 each as part of a subscription alongside the open offer. But there are, as as you will understand, certain times of the year when the board can and can't invest. We have a window of opportunity now, and then we will be going into close period actually fairly shortly before the results are announced later on in the year.

33:34 Thank you. You you have asked me to read out all these questions in full, so I will. So please explain how you're not just a lifestyle company. How invested are you all as directors in the success of the business? Having diluted shareholder investments further with this placing announcement, what is the proactive sales strategy for the health and nutrition business, and why should we believe anything in terms of moving into the future? And do you give do you think that given the performance of the share price, it's appropriate to keep paying yourselves at the current levels? Yeah. I'll take part of that. I mean, I think some of some of the remuneration stuff was already answered in the previous question. We are we are more than a lifestyle company. You know, wellness and chronic disease prevention is critical to healthcare systems all around the world, particularly with an aging population and prevalence of chronic disease.

34:27 You know, we're passionate, and it's not just myself and Chris, it's our team underneath us that really delivers the results in health and nutrition. You know, we are a leading player in food sensitivity testing that has brought many, many benefits to many millions of people around the world and we are passionate about how the role of gut health plays in medicine today. It is the last frontier of medicine. We don't quite understand today how things like the microbiome and the gut health manifest themselves in chronic disease, but we certainly believe that good diagnostics, early diagnostics leads to better wellness and better recovery from inflammatory conditions. And that ranges everything from from from diabetes, autoimmune disease, to mental health issues, to skin conditions.

35:20 We just, you know, are passionate about this. And more importantly, more than just lifestyle, you know, if we can change the tide of chronic disease by better diagnostic testing and gut health, that's what our mission and vision is going forward. Know, practice sales strategy, we'll do more of what we do today. We're we're a leader in science and education in health and nutrition. It's a business that has grown from just over 2,000,000 ten years ago to just under 9,000,000 now and has much greater potential to grow in this exciting new area. You'll see companies elsewhere investing in microbiome in terms of supplementation, probiotics, and prebiotics. It is, as I said, an exciting frontier of medicine, and we are at the heart of it, and we wish to dominate the heart of the testing certainly in this area.

36:17 Thank you. Chris, if I may just turn to you just to continue seeing, I guess, of the previous questions. But why have the directors not committed more of their own funds if they believe believe that plans will be successful? Surely, that show of faith would make success far more likely. Yeah. And like I said, referred to the earlier question, really, that we're we're putting £85,000 in between us, $20 each minimum, as as part of as part of this fundraise. So and alongside that, I know Jack and Jeremy, in particular, have already got significant shareholdings from from previous fundraisers as well. You. Jack, if I may turn to you around the future of Omega Diagnostics, does it does Omega Diagnostics still have life in it? Absolutely. I think, you know, over the years, we've tried to do too much.

37:05 The the the curse of a lot of businesses is distraction by diversification. And yet under our noses has been a business that has grown grown double digit every year, provided all the EBITDA and all the cash for the business with very little being invested back into it considering the potential that it had. Myself and Chris have dealt with those distractions and and those, you know, areas that have cost us time and money. And I think by having a single laser focus on a particular mission, having a very clear vision and strategy for this business, I think it more than has life in it, to be honest. I think it's probably the start of a very exciting time going forward for the company, customers, its employees, and obviously, naturally, as a consequence of that, its shareholders.

38:02 That's great. Thank you very much indeed. Chris, if I may turn to you, where are we with the attempt by the government to reclaim money? The the the last correspondence with the government was in early was in early February, as I mentioned, during the course of the presentation. In that, we wrote to the government and asked for certain information that they alleged was available and copies of correspondence that they claimed to have issued, which we have not received. So the ball is very much in the Department of Health's court to answer that now over three months without a response to our last letter. We are continuing to chase as you might imagine, but I have a strong suspicion that some of that information that they've previously referred to does not exist, which I think probably strengthens our argument rather than weakens it at this particular point in the cycle. So I think we're increasingly confident that we're not going to be required to make a repayment of the 2,500,000.

39:04 And as I said before, we are debating or contemplating making a counterclaim for additional losses incurred under the contract, and that is subject to discussion with our internal legal counsel. That's great. Thank you very much indeed. Jack, what third party health and nutrition products are already being distributed? Well, at the moment, we only distribute and sell our own food sensitivity products. It's the the food detective, which is a point of care in clinic test that can measure reactions to 59 foods than the more lab based ELISA, and more importantly, microarray system, the the food print system. And that's sold out through a distribution channel. Apart from The UK where we are direct with with our own CNSLabs service that uses our technology servicing healthcare practitioners patients.

40:00 Going forward with the menu expansion, microbiome and immunogenomics, they will be third party, not necessarily products, but the quality services. But the most important thing is those those test results get incorporated into our digital platform that then provides health care practitioners, healthcare professionals, and patients the right information to then personalize their nutrition going forward. Thank you very much indeed. And, Jack, may I stay with you? Where is it intended to source microbiome products from? So the microbiome products or more correctly, the the testing services will be sourced from a third party. Those conversations currently ongoing are confidential, but as soon as we announce those collaborative partnerships, we'll obviously announce that to our stakeholders as soon as we complete them. That's great.

40:56 Thank you. And maybe if I'm maybe for you, Jack, what use does health and nutrition make of KOLs influences and how? We don't use a lot of influences in terms of, you know, Kim Kardashian, etcetera, but we we very much support our scientific and educational brand by using KOLs or key opinion leaders. They tend to be clinicians. They tend to be leading nutritionists and naturopaths around the world. Often, are involved in scientific studies that are often published in scientific gut related journals. More importantly, they're very much part of our team. They're involved in our own educational and scientific activities in terms of delivering talks at seminars, conferences, and webinars.

41:47 Jack, Chris, thank you very much indeed. Just mindful that we are coming out to the forty five minutes that we put aside for today's update. And thank you to all the investors that have submitted questions. Of course, every question that's been submitted, we'll make available to the company. And where appropriate, we'll publish those responses and notify you when they're ready for your review. Chris Jag, I know investor feedback is important to the company, and I'll shortly redirect investors to provide you with their thoughts and expectations. Before doing so, I wondered if I may, Jack, just ask you for a few closing comments. Yeah. Thank you. And firstly, thank you to the audience for their time this afternoon. I hope you can see some progress being made as we shape it up for greater focus and greater growth going forward.

42:33 We've had health and nutrition under our noses for way too long delivering results but with massive potential. And it's our job now to make sure we create the runway and the structure and more important focus to deliver on what we already have built on over the last couple of years. Well, that's great, Jack, Chris. Thank you very much indeed for updating investors this afternoon. Can I please ask investors not to close this session as we'll now automatically redirect you for the opportunity to provide your feedback in order the management team can better understand your views and expectations? This will only take a few moments to complete, but I'm sure will be greatly valued by the company. On behalf of the management team of Omega Diagnostics Group PLC, we'd like to thank you for attending today's presentation. That now concludes today's session. And I wish you all a very pleasant afternoon. Thank you.