Aasim Javed: Hey, Charles, thanks for the question. While we’re not quite guiding 2024, I recognize you guys have to do your models, right? So I think the way to think about 2024 and early 2025 is you’re right, there’s a kind of basal COVID rate that we expect to be there but then when you. And on top of that, we do expect several approvals. So we expect to have several approvals in 2024. So it’s not just respiratory, it’s sexual health as well. And then on top of that, our software and services at Cue Care, Cue Lab, Cue Pharmacy, we’d expect those to also start gaining momentum. And we’ve also talked about this flywheel effect that when we have all these other test approvals, we think there’s a flywheel effect that actually benefits Cue Care, Cue Lab, Cue Pharmacy.
And then the last piece on the top line is not to forget is the grant revenue that we have, we have the BARDA deal contract that we signed a $28 million that also contributes to the top line. So that’s kind of broad strokes how I think about top line. As you go down the P&L, I mean, gross profit is going to be impacted by volumes as well as mix. And you would have seen in the past when we’ve had higher volumes, we’ve posted over 60% margins. And you’ll also see sequentially this year our gross profit has kind of trended with how volumes have played out. And when we think about our future products, there as we move away from COVID or the proportion away from COVID we do think we’d have a kind of price mix benefit as well on margins. So we think over time, as revenues grow, margins with growth for those reasons.
And then on spend, we’re very proud of — we’re very happy with where our spend is right now and that allows us to — the right amount of spend to play out our strategic priorities. So while I’m not going to guide 2024 spend, we’re kind of at this new level of OpEx. And at least in the near term, it’s fair to assume similar amount of OpEx quarter-on-quarter.
Charles Rhyee: Okay. Thanks. And the EBITDA loss was $35 million in the quarter, actually cash used was only $18 million. Can you remind us sort of what the delta between adjusted EBITDA and actually cash used is?
Aasim Javed: Yes. Cash utilization of $17 million, as I mentioned, the best kind of cash performance that we’ve had since Q1 2022. We did have an ERC credit of $20 million. And while that was onetime, I think the philosophy here is that here, as a management team, we continue to look for opportunities to bolster on cash balance.
Charles Rhyee: Okay. And lastly can you just remind us for the BARDA contract, how we should expect to sort of layer those revenues as we go through the year? Is that sort of a portion quarterly? Or will it be recognized in chunks? Just curious there. Thanks.
Aasim Javed: Yes. The BARDA revenue, I mean, it shows up in the grant and the revenue line item on our P&L and it does show up quarterly, and it will continue to show up quarterly up until we have the approval for the flu COVID RSV multiplex.
Charles Rhyee: Okay. Great. These are the questions. Thanks.
Operator: Thank you. I’m showing no further questions at this time. So thank you for your participation in today’s conference. This does conclude the program and you may now disconnect.
