Alpha Teknova at Sidoti Conference: Reagent Market Strategy

On Wednesday, 21 May 2025, Alpha Teknova (NASDAQ:TKNO) participated in the Sidoti May Micro-Cap Virtual Conference, providing insights into its strategic positioning in the cell and gene therapy market. The company emphasized its unique capabilities in custom reagent supply, while also addressing macroeconomic factors and its growth trajectory.

Key Takeaways

• Alpha Teknova focuses on custom reagents for cell and gene therapy, aiming for a 25% growth rate.
• The company boasts a high customer retention rate of 95% and significant spending from custom and GMP customers.
• Financially stable with $26 million in cash and an untapped credit line, Teknova plans to reach EBITDA breakeven at $50-55 million in revenue.

Financial Results

• Revenue & Growth:

- Historically grown 12% annually since 2009.

- Targets 20-25% top-line growth.

- Catalog business saw low double-digit growth in Q1.

• Gross Margin:

- 70% of each additional dollar contributes to profit.

• Customer Spend:

- Custom customers spend 22 times more than catalog-only customers.

- GMP customers spend 44 times more than catalog-only customers.

• Capital Expenditure:

- Major investments already made to support $200-250 million in revenue.

- Future CapEx limited to $2 million annually.

• Cash Position:

- $26 million in cash at Q1 end.

- Untapped revolving credit available.

• Profitability:

- Adjusted EBITDA breakeven expected at $50-55 million revenue.

Operational Updates

• Manufacturing:

- 95% of operations are U.S.-based, minimizing tariff impacts.

- Modular facility allows for scalable and customizable manufacturing.

• Customers:

- Over 3,000 U.S. customers with a 95% retention rate.

- Supporting multiple clinical trials in cell and gene therapy.

• Capacity & Product Development:

- Can scale to $200-250 million revenue without significant CapEx.

- Custom GMP products ship within 4-8 weeks.

• Quality Control:

- Conducts 4,500 QC release assays monthly.

- 20 validated QC assays.

• Partnerships:

- Collaboration with Pluristics for cryopreservation media.

Future Outlook

• Growth Strategy:

- Leverage existing catalog customers to boost custom and GMP sales.

- Targeting a sustainable 25% growth rate.

• Expansion:

- Exploring further partnerships and potential mergers and acquisitions.

• Financial Targets:

- Achieve adjusted EBITDA breakeven at $50-55 million in revenue.

- Aim for cash flow positivity.

• Market Positioning:

- Focus on small batch production for emerging therapies.

Q&A Highlights

• Tariffs & NIH Funding:

- Limited impact from tariffs; NIH funding is under 4% of sales.

• Commercialization Confidence:

- Strong retention expected as customers move to commercialization.

• Margins:

- Anticipates margin improvement from a shift towards custom and GMP products.

• Partnerships:

- Actively pursuing new partnerships to expand offerings.

• Capital & Cash Flow:

- Confident in capital sufficiency to achieve positive cash flow.

Readers are encouraged to refer to the full transcript for a more detailed analysis.

Full transcript - Sidoti May Micro-Cap Virtual Conference:

Jim, Sidoti representative, Sidoti: Thirty minutes for the presentation. We should have about ten minutes at the end for q and a. So if you have a question, you can type that into the bottom of your screen. And with that, it’s all yours, Matt. And, I think we still need to share your presentation, just so you

Steven Gunstream, CEO and President, Technova: know. There

Jim, Sidoti representative, Sidoti: we go. Thank you.

Steven Gunstream, CEO and President, Technova: Alright. Thank you, and thank you, Jim, for having us and Sidoti for for giving us this opportunity to present to you today. My name is Steven Gunstream. I’m the CEO and president here at Technova joined by Matt Lowell, our CFO. We’ll like Jim said, we’ll do about fifteen, twenty minutes of presentation and then happy to open it up for questions.

Just to start, obviously, some forward looking statements here. And Tectova, we are a leading provider of reagents for the entire life science community. That’s everything from discovery through process development through clinical manufacturing all the way through to commercial support. We have over 3,000 customers here in The United States. We’re in every biotech, pharma, life science tools, diagnostic company here, primarily with our discovery products.

And what you hear as you go through this presentation is we’ve really built out a capability to make custom products and support some of these emerging therapies by providing smaller scale customer agents really quickly, which is really needed in in the industry today. So now we have, you know, through those efforts over the last three or four years, put ourselves in a position where we have a foundational business that is growing, in the double digits and and actually historically has grown 12% since 02/2009. Then on top of this, we have a number of clinical programs working their way through the pipeline that should aid in developing a, a growth trajectory of the 20 to 25% top line growth. Last piece here is, obviously, the last three or four years have been particularly challenging for emerging biotech companies. We continue to gain customers there, but we have done the investments already to put ourselves in a position to scale the business to 200 to 250,000,000 in revenue without significant additional CapEx.

So you’ll see a lot of that sitting on our our gross margin today, but 70% of every additional dollar flows all the way through to the bottom line. So we’re excited about where we sit. We have the capital to get to to profitability. We have a growth trajectory that looks really good, and we have a number of customers moving through here, that puts us in a great position for long term success. So a little history of the company.

It was actually founded in 1996 by a scientist out of Genentech. He was, ordering internally reagents for his own research and became frustrated that he couldn’t get the products fast enough, and at the quality he needed. So he actually started making Technova’s first products out of his garage in 1996. The company literally grew by word-of-mouth up until 02/2019 when private equity firm invested and bought the majority shares of the business. Everything’s done by word-of-mouth in that period.

No external capital coming in, but a focus on quality and science that put us in a great position where we’re ever in every lab in The United States. In this sort of 02/1920, period, that’s when we really began investing to scale the business. So I joined in 02/2019. It became clear to me that the industry really needed a lot, of customization to support these emergent therapies and emergent diagnostics. So we’re getting requests for these custom formulations in very small batches, and no one else was able to to sort of supply those at a reasonable time frame and a reasonable quality.

And so realizing this, we decided to make a pretty big investment in this company, and that is build the infrastructure, build the IT systems, build the quality system, build the leadership to actually scale the business to that couple hundred million and support these customers as they go through their clinical trials. So, you know, before Technova, right, we had the large players in the space, like the Danaher’s, the thermals that that supplied reagents to the entire bioprocessing community. They set those up to scale at sort of 10,000 liter batches. Very standard, same reagents over and over again. And, what customers loved about that was they had the infrastructure, the quality systems, IT systems in place to support them through commercialization.

But if you wanted anything smaller, anything custom, you’re waiting months for those products. Then you have companies like Technova. They’re very small companies sort of in that 10 to 20,000,000 in revenue size. They could do that customization, but they didn’t have the infrastructure facilities to scale that, to really support those through clinical trials and commercialization. So our vision here is to be the best of both.

This is why we took the company public in February, ’21, raised the money. We built the facilities. We built the infrastructure. We built the quality systems. We actually built the commercial team to put us in a position to scale this, and now we’re onboarding clinical customers.

And that’s where we are now in the scaling period. So what do we sell? We sell, agri plates as a as a part of our business that’s been around for a long time. Think about these as petri dishes. These are things that go in everywhere from academic labs to grow bacteria or engineer bacteria to environmental monitoring in bio, production facilities.

Microbial cell culture media, this is the food that grows bacteria. So if you’re talking thinking about making plasmids, you usually put those within bacteria like E. Coli. In order to grow the E. Coli, you have to feed it, and that is what microbial cell culture media is.

We’re probably one of the leaders in the space of that. And then buffers and reagents, which encompasses everything from your seventh grade chemistry class. This is acids, bases, detergents, salts, sugars. This does everything from resuspending DNA up to very complex chromatography buffers. And then, of course, we offer all of these solutions in everything from two mil tubes, so very small tubes, up to 200 liter single use bag so we can support customers from discovery all the way to commercialization.

Because of those products, we actually sit in every customer segment in the life sciences. Think about our products as sort of the cornerstone for all basic research, but then also as your manufacturing, say, and with therapy, you need these in larger scale to actually put the to make those products and those proteins at a scale that can be used for therapeutics. Our end markets today, we’d like to split it up by looking at catalog versus custom. Right? So catalog, think about products that go into a warehouse of a, say, a pharmaceutical company.

These are things that the discovery teams, the r and d teams will go in, pull out, say, a reagent to use on their bench to sort of identify the next greatest, protein for, therapy. They’re working doing general r and d. It’s also what academics use, and it’s also, say, what a life science tools company might use to do development on a new product. That is 60% of our business. We believe that’ll grow low single digit for the full year.

To that end, though, actually, in q one, that actually grew low double digits, so we’re seeing some nice uptick in our general base business here. Such an important part of our strategy here. This is the foundation. It’s very diversified. It provides us an installation from all of the other macroeconomic trends.

Also allows us to continue to manufacture and utilize our facilities, while we get this custom business up and going. Custom represents about 35% of our business. Of that, 25% of the 35% is biopharma. Consider this custom biopharma. This is really the bioprocessing side of our business.

This actually grew 40% last year. And then nonbiopharma is everything from my science tools and diagnostics to agriculture to food testing and things like that, and then other will be services. So you think about our business as a, like, sixty forty split between catalog and everything else. So what makes us different? Right?

Quality, number one. We’re founded by a scientist. We really focus on this on a day to day basis. We’ve built a fantastic brand in the space. We do 4,500 QC release assays, a day a month.

I’m sorry. 20 validated QC assays. A ton of focus around making sure the products that are out of the door are the highest technical and scientific quality. The two pillars in the middle are what’s hard to do together. Customization, can I take an order, get a formulation, get it in production within a matter of weeks versus months with from our competitors?

And so that custom and speed is actually combining those is what you really need to invest in from an infrastructure perspective. That’s everything from how do I look at this formulation, know how to quote it. Once I quote and I get the PO, how do I know how to route it through manufacturing to do that really quickly and provide that same scientific quality? Last pillar here is around service. When someone calls us, we answer the phone.

You’d be surprised at how different that is from everyone else right now. You get fantastic service, whether that’s how do I make the right reagent, what is the right formulation for purifying this type of product, but also where’s my order? Can I change this? Can I find a different supplier for that? We get a ton of, accolades from our customers around our service levels.

And, and we have a net promoter score in the in the seventies for post transactional, so just as a sort of demonstration of the quality of, that we’re getting from our service team. So from an overall strategy perspective, it’s sometimes helpful to take a step back and say, where are we in in from a scientific perspective. Right? There’s this small molecule, piece for many, many years ago and then the biotech boom, and then, of course, now we have these emerging therapies. In the meantime, though, obviously, we’ve had a ton of scientific advances in the last twenty five years from sequencing to understanding the immune system.

All that advance has been great, and and then, of course, we’ve now had a ton of innovation because of that in drug discovery, but the bioprocessing methods required to manufacture these at scale are not there. This is one of the biggest hurdles in the space, whether you’re talking about cell therapy, gene therapy, mRNA. The the the ability to do this in an efficient, quick manner is not there. And a lot of that has to do with the fact that suppliers are not able to make their products different, custom scalable, and smaller. And that is really kind of the vision that we’ve laid out here.

And how we do this is you almost think about what we call a modular manufacturing facility, that instead of building manufacturing lines end to end, right, where you put raw materials in and you get widgets out the other side, and they’re all 10,000, the exact same thing, we have modules of of ways in which we manufacture. So you can pick your product rate, and that selects how we route it through the manufacturing system, the quality system it sits on, what size of bioreactor. We have everything from less than 10 liters up to up to about a couple thousand liters. Formulation, you know, based on if you have a high sugar, we actually need to heat it to get into solution. If some of these complex mixtures, you actually have to have one ingredient added before another and get it into solution.

So we have a lot of know how around that. Sterilization. Lots of different ways to sterilize your product. Dispensing. Some things we manually dispense.

Some things we have automated dispensing that we built in house. Some things, are bags and and some are automated bags, so that you can pick you know, you can have the same formulation and get it done in two mil tubes, or you have the same formulation, get it in 200 liter bags. And we don’t have to change a manufacturing line. We just route it through a different step. Same thing with labeling, automatic labeling, manual labeling, custom labeling, and then, of course, pick from a menu of your of of your quality control what actions we tested.

So we put these together for customers. We can now take these intake forms, get them quoted within a day, and then automatically route it through our system. So what this allows us to do is really deliver much faster than anyone else. So this this ability you know, right now, our research use only products shipped in about two two weeks two to three weeks. Our custom GMP products might be four to eight weeks.

Consider this compared to what the typical norm is is something more like four to eight months from the larger players in these custom GMP products. And so here on the right hand side is just an example of a customer that was very stuck. They needed to get some stuff into clinical trials. They needed eight custom GMP reagents. You can see we did the quote we received in November.

We did received the PO at the at the, November 18. Product shipped in January 22, allowing them to meet their start date. The alternative was another supplier that would have actually shipped it or claimed to have shipped it in April or May. So this saved them about three months, and and, of course, this became a very loyal customer of ours and now orders all the reagents from us. I talked about research to discovery all the way through commercial production.

One of the things that is really important for everyone to understand here is that as they customers migrate from catalog to custom to GMP reagents with us, as they go down that clinical pipeline, the amount of spend they spend with us increases dramatically. And so if you normalize the customers that only buy catalog products, you can see that customers that buy catalog and custom products spend on average 22 times more than those that buy catalog products. And then those that buy GMP catalog or custom products spend 44 times more than those that only buy catalog products. And so our strategy is very simple. We have this giant base of catalog customers, many of which are in the biotech pharma space or life science tools and diagnostic space that are only buying catalog.

Getting into those custom formulations, and then going down that clinical pipeline will drive significant revenue increase. Last piece here is around the batch sizes. I mentioned around monoclonal antibodies and about the large players being set up to scale for 10,000 liter batches. Right? We really focus on these much smaller sizes, and these emerging modalities are much smaller in nature.

You’re talking about hundred liter batches at when they start to get to phase two even. And so the ability to actually do these small batches in a high throughput manner in a quality system and customization sets us apart big time. And you can see because of that, we continue to increase the number of clinical customers that we’re supporting despite a very challenging biotech environment. So, you know, why Technova? We have an expansive catalog portfolio that fills in all the workflow gaps.

We can make products in every shape, size that’s needed from the customer. Quality, you can count on across the board. Fantastic customer service and sales support. Our customers absolutely love us. So as we enter a new customer, we start to expand within there.

And then certainly an industry leader in turnaround time. So once people get used to this idea that they can order and get product within a couple months or even six weeks for GMP, it’s very hard to go back to waiting and planning for four to six months. Just real quick, I’m gonna touch on the cell and gene therapy side of things. I’ve mentioned around small molecule drugs. This is just, as you go through time, every single step of this process and bioprocessing has increased complexity from small molecules to small biologics.

This is emergence of biotech, boom, into large biologics monoclonal antibodies. This is cell and gene therapy. So you just look at the complexity of actually instead of making a monoclonal antibody, the idea of making an AAV capsid with a gene inside of it to do gene editing in a cell, with the complexity of manufacturing so much more than even the large biologics. Right? And so to be with more complexity, you need a lot more customization.

These, while every monoclonal antibody is essentially made the same way, every gene therapy, even within AAV, is actually purified in a different way, for example. Cell therapies are totally different processes. MRNA, completely different process. Right? So you need a lot of different types of reagents to make this happen.

And so what we’ve done, I’m obviously not gonna go through all this, but this is an AAV example of a workflow. You see all these names in black. These are reagents we supply for these workflows. Ones in purple are proprietary reagents we developed over the last three years, but what you can see is that we support all of the reagents as you go through manufacturing AAV in this case. Same thing with plasmid production.

This is a plasmid workflow where we’re supplying a lot of reagents from this for plasmid production. So I mentioned as the customers go through that, clinical trial, the amount they spend increases. So if you look here on the top, this is this is about if you if you normalize to how much a customer spends in phase one to phase two, phase three, and commercialization, think about a 30 fold increase as customers move down that pipeline. From a therapeutic perspective, we are actually supporting three customers in the phase two, phase three region right now, 10 customers in phase one, and about 40 plus in preclinical development. And on the bottom here, you can actually see the number of clinical customers.

So I just talked about therapies, but the number of clinical customers we’ve supported over the years. Right? So 62, and and they’re by only catalog customers catalog for this is cell and gene therapy. I’m sorry. 62 cell and gene therapy customers that only buy catalog products, 23 of those of the total hundred that we support are buying custom products, and 23 of the cell and gene therapy customers are actually buying GMP products from us today.

And you can see underneath these are how much it’s increased over last couple of years. So, last piece here, and and I think it’s really important for everyone to recognize, the investments have been made in this business already. Right? We spent the last three years putting investments into our facilities, our infrastructure, systems, our leadership, our commercial engine to scale the business. And if you look at our our CapEx spend, you can see see big time over the last, you know, year or two, the decrease in the CapEx spend.

That’s because we’ve already made those investments. We can scale this business to 200 to 250,000,000 without significant more CapEx. So we’ve increased our customer clinical solution base from 13 to 48 over the past four years. We believe through these investments we made in that foundational business that we can drive long term above market growth to 25%. This is a picture of the team and our new facility.

We have a 30,000 square foot GMP facility, that is ready to scale. We’re operating this on a daily basis now, but with plenty of capacity to onboard more customers. We can manufacture bottles from one liter up to 20 liter bags. Everything in the facility is controlled, just like a customer would want. I can tell you this is, I kinda jokingly pushed the sales team.

This is the best salesperson we have is when we bring a customer in and they audit us and they see this facility because it’s that point at which they realize we can compete with the big players in the space but provide them the flexibility and speed that they need for manufacturing these therapies. At the same time, we’ve also done the commercial side of things. So we built this commercial capacity to support hundreds of millions of dollars in revenue, but also, we we are now starting to partner with companies on that commercial side. So this is a new partnership we announced, last quarter, with a company called Pluristics. They developed a cryopreservation media.

This is used for cell therapy and freezing cells and bringing them back, so you can ship them around or move them for engineering. And they came up with a proprietary formulation. We are the exclusive manufacturer and commercial engine for this particular product suite, and and it allows us to put something else in our bag since we’re already talking to these customers. How else can we help them? So we’re gonna do, hopefully, more of these collaborations and potentially some m and a in the space to to build this out over time.

Last here, you know, obviously, a phenomenal team. I’m really excited about our management team. We have experience, across many industries, but importantly, both small and large companies here, that’s our ability to sort of set this up to scale is because of that. We have some people that have history of Technova, some people with history of large companies, many of which have done small and too large and knowing how to scale this business. So it’s a it’s a really amazing team.

So key takeaways here, we’re a critical life science region supplier, attractive growth profile, you know, like I said, growing the business, a core business 12% since 02/2009, now layering on these clinical therapeutic support that we believe can drive the business to 25% sustainable growth. We’ve made the investments for long term growth. We don’t it’s not like we’re gonna say, hey. We need to build another facility until we get close to that 200,000,000 in revenue. Great leadership team, and we’re executing that plan.

We’ve done basically what we said we’d do when we took the company public in 2021, and now we’re in a position. We have the capital runway to get to profitability. We believe our adjusted EBITDA breakeven will be in that 50,000,000 to $55,000,000 in revenues. So maybe with that, I’ll I’ll I’ll stop here and and and turn it to, questions, with Chip.

Jim, Sidoti representative, Sidoti: Thank you. Thanks, Steven. You know, there’s been a ton of changes the last five or six months, changes with the with tariffs, with the FDA, with NIH, just the global macro environment. You know? How how are you adapting to those changes?

Steven Gunstream, CEO and President, Technova: Yeah. I think I think it’s really important question because we get this obviously now every week. And we are in a good position relative to the direct changes from tariffs at NIH. So % of our manufacturing is done in The United States, Ninety Five Percent of our sales in The United States. So very little exposure to tariff related, parts.

Our raw materials, we source about a million dollars of raw materials from outside The United States, which is a small percent of our overall material or our direct costs. Right? So even so, you know, very limited impact on us overall. So we feel pretty insulated from the tariff perspective. On NIH funding, we support over 500 academic and government institutions, but that represents less than 4% of our total sales of, annually in 2024.

Even in that, you’re not going to likely decide to save money by cutting $3 agri plates you’re buying from us, for example. Right? It’s much more the more expensive instrumentation than other reagents that you’re buying from others. So we feel pretty insulated even at that 4%. So all that’s really good.

I think the the hard part is obviously the second order effects of we are supporting a lot of small, mid sized biotech companies which are reliant on the market to raise money. And so we’ve always said that biotech funding environment is what is, will drive, you know, these therapies going through to commercialization. We have been fortunate that even despite the challenges because of our product offering, we continue to increase those number of clinical customers, and that’s why we believe that particular segment will grow in the sort of 15% so far or overall in 2025.

Jim, Sidoti representative, Sidoti: Okay. You know, you’re obviously very good at helping companies develop the products, you know, with those initial batches. But do you think you’re in a position now when those products are commercialized that you can supply, supply reagents and and other materials, or do you think that they’ll still be going with Thermo Fisher?

Steven Gunstream, CEO and President, Technova: Yeah. It’s really hard to transition out, number one. So we have a 95% retention rate, by the way, of our customer base year on year. And it’s very hard for customers to switch. And I’ll I’ll tell you this from experience because we did switch, to from a customer that was using a large player to us.

That was a phase two. It took about eighteen to twenty four months to go through that validation process for them to switch to us. And so we know it’s a whole lot of work to change out, and our conversations with these customers to date have been very positive and that they want to stay with us as they go to commercialization. And certainly, we have the the facility and the capacity to bring that on board. So, at this point in time, we we do not see that happening.

Jim, Sidoti representative, Sidoti: Right. And I I think you said your business is about 60% catalog, 40% other products. I assume the other products are a higher margin. And do you think that, as a result, you’ll see margins start to, to widen even further as they become a bigger part of the mix?

Matt Lowell, CFO, Technova: Yeah. I’ll take that one. I think, yes, there is an underlying over the longer term, you know, potential mix benefit to margins of some of the custom and especially the GMP clinical grade products. Right? Those are those are at a higher margin on average.

But I would also say, in general, just fundamental growth in the business from any products, just utilization of the infrastructure, the fixed costs that we have is gonna see, you know, nice reflection in in in the incremental profitability to the tune of that 70% on incremental dollars that Steven mentioned earlier. So I think the answer is yes. Mix is a is a is a benefit over the longer term, but just general volume increase is helping right now and will also continue to help.

Jim, Sidoti representative, Sidoti: Right. You you talked about the the re recent partnership you, you just signed. Are there other deals like that in the, in the future? And, you know, what what kind of companies do you think you’ll work with?

Steven Gunstream, CEO and President, Technova: Yeah. Great question. So we, yeah, we did recently sign this partnership with Pluristics, and I do think there’ll be more in the future. And here’s the reason. Right?

A lot of the last couple years, we’ve been investing in the ability to manufacture and to commercialize these products. While we have capacity there, many other companies have invested in the r and d side of new novel technologies. The idea of them then building out their own commercial side or their own operational to do that in a time like this is really challenging. Most of these are small companies. So we’re seeing kind of sort of that that glove ball fit right now where, hey.

There’s our companies out there with great capabilities. We’ve built the channel. We can manufacture it. They’ve had they have the technology, and then we can put those two together. So what we’re looking to do is build out those workflows for customers.

So in particular, like, the cell therapy with the cryopreservation, there’s maybe some cell therapies, cell culture media in there that we don’t have, but there are some other providers out there that we can put those together. So, yeah, we’re we’re engaged with a a number of other groups. Obviously, these are very hard to tell timing wise and when those happen, But we are excited about the fact that, you know, we can provide a great alternative for them having to either raise money or work with a large distributor that doesn’t really understand their products or have the relationships with the customers that we do.

Jim, Sidoti representative, Sidoti: Alright. And then, maybe you can talk a little bit more about the financials. You know, how long how well, it sounds like you’re well on your way to, cash flow breakeven. How long do you think it takes to get there? Do you have enough capital on the balance sheet now to get you there?

Matt Lowell, CFO, Technova: Yeah. I’ll start with the last part, Jim. I mean, we do believe that we have enough capital. We had $26,000,000 of cash on the balance sheet at the end of q one and an untapped revolving line of credit. So, you know, we’ve, in the past, laid out the assumptions of what do we think it takes to get to cash flow positive.

That’s the, you know, 12 to 13% growth on average, 70% drop through on incremental revenue to profits, which because of the high fixed cost base that we have, you know, managing minimal increases in OpEx and roughly $2,000,000 in CapEx per year. And with those hitting those marks, which we think are reasonable assumptions, we’ll get to cash flow positive. We talked about adjusted EBITDA breakeven in the 50 to 55,000,000 revenue range, and then the cash flow positive will be on the heels of that. And we’re very thankful we did have a successful capital raise last summer. As I noticed there were some questions about the stock price, and the stock has has moved upwards, since that time, I think, in large part because of the, visibility to get into cash flow positive with the capital that we have as well as the improved performance in the business in the subsequent quarter.

So, I think we’re we’re feeling like we’re in good shape right now.

Jim, Sidoti representative, Sidoti: Okay. Great. Great. Well, we are bumping against our time limit. Steven, do you wanna make any closing comments before we sign off?

Steven Gunstream, CEO and President, Technova: Sure. Yeah. So, again, thank you for having us. I’m excited about the business. We’ve put ourselves in, I think, a a strong position.

We’re unloading this clinical customers. Our foundational business is current returning to 12% growth, and we don’t need to make any significant investments to get to that profitability and drive that gross margin up. So, you know, we’re we’re kind of in a position now where it’s it’s execution mode, and we’ve we’ve shown that we can do that for the last three years. So I appreciate the time, and and please reach out if you have any other questions. Alright.

Well, thank you for

Jim, Sidoti representative, Sidoti: the presentation. I know we’re keeping you busy to stay with meetings, and thank you for that, and I hope to get an update soon.

Matt Lowell, CFO, Technova: Thank you, Jim.

Steven Gunstream, CEO and President, Technova: Thanks, Jim. Everyone. Take care, guys. Bye.

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