Matt Hewitt: Good afternoon. Thank you for taking the questions. Maybe the first one, regarding the market, and I very much appreciate the market segmentation that you provided. I’m just curious, as you look into areas where there has been some weakness or some headwinds, how much of that is tied to the reprioritization of pipelines versus preservation of capital? We’re hearing that both ends of the spectrum, small and large pharma, just being a little bit more cautious and kind of slowing some of their pipeline projects. But is there a way to kind of break out the two? How much of it is budgetary from the customers versus how much of it is just shifting of the pipelines and priorities and that could potentially come back maybe faster?
Rod de Greef: Yes, I think the large part of the decrease with respect to those several large direct customers, I think that really has to do with internal inventory levels that they’re trying to manage tighter than they have in the past. So, I really do think that, that’s a transient phenomenon, whether it gets cleared up in Q4 or Q1 remains to be seen. But we’re pretty optimistic based on what we see right now that it is truly transient as opposed to any issues with demand, the end demand for their products or any cutback in their R&D program or anything like that. And again, we’re subject to some pretty high concentration within that group of customers. So, any one of them wanting to hold back and push out an inventory order for a quarter definitely has some material repercussions for us.
I think where you might see some of the other headwinds that you referred to would be in the small direct customers and then, in particular, our largest distributor who has a heck of a lot of a lot of customers basically in the thousands. So, those are a lot of academic labs, small research labs. So, those might be affected much more so than the larger customers with respect to R&D, belt tightening and things like that. And we tried to signal that in the commentary that we had both in my script and in the press release.
Matt Hewitt: Got it. That’s super helpful. And then regarding the freezer divestiture, it appears and — maybe correct me if I’m wrong, but it appears that you’re now targeting early I think last quarter, the conversation was you expected to have that done by the end of the year. How is that process proceeding? What’s — how are you looking at that? Thank you.
Rod de Greef: You bet. It’s proceeding. And I think the sort of delay into Q1 really has more to do with some late entrants, which are legitimate potential buyers of the company. So, we wanted to have them in the mix and take advantage of whatever they may come forth with, so that’s really what it’s about. We’ve got two holidays coming up. So, just practically speaking, I wanted to level set and let people know that it’s unlikely to happen in Q4. One or both could — it’s possible, but it’s more likely in early Q1.
Matt Hewitt: Understood. Thank you.
Rod de Greef: You bet.
Operator: Our next question comes from the line of Paul Knight with KeyBanc. Your line is open.
Paul Knight: Hi Rod. When — what event do you need to move this on to discontinued ops?
Rod de Greef: Yes, Paul, since I’ve been back, I’ve spent too much time with auditors and know too much about the gap around discontinued ops. It’s very complicated. And basically, what we need is a signed deal in hand that the Board has approved to be able to put things into discontinued ops. In short, that’s really the test.
Paul Knight: And what’s your view on the burn rate of the company this year? And what you think the burn rate would be ex-sterling?
Rod de Greef: Well, I don’t want to get into too much detail. We’re in the middle of our budgeting process, Paul. And so I think we’re going to have a much better idea of non-freezer BioLife with respect to adjusted EBITDA and cash flow. But what I would say is that we would be positive adjusted EBITDA in Q3 here had it not been for the freezer business, and that’s irrespective of the fact that our media business was down as low as it was.
