Cytosorbents Corporation (NASDAQ:CTSO) Q4 2022 Earnings Call Transcript

Phillip Chan: It’s a compilation of many different grants in fact. And so many of those grants, particularly the ones we received last year, or those contracts still have a two to three year timeframe on them. So €“ but it varies. Some are near in completion, but some are just beginning.

Tom Kerr: Got it. Okay. And then just last question is on the capital expenditures, as I understand it’s going to be diminished this year. But does that have to get ramped backed up over the next three to five years? Would it ever get back in the millions or can you operate this business at very, very low CapEx needs?

Phillip Chan: Kathy, did you want to talk about that and maybe touch on the commercial expansion as well as if drugs ?

Kathleen Bloch: Yes, I think that with regard to our CapEx of $6 million last year, that was because of the opening of our new manufacturing facility. So that was a big bull list of expense that we won’t be experiencing hopefully for another 10 years or some. But our capacity has grown fourfold from 80 million to now 350 million to 400 million in annual capacity. So we should be pretty well set at our current plant. Prior to opening up the new plant, our CapEx spend was generally $300,000 to $500,000 a year. And now we have all new equipment in our facility. We have new labs, and so we can expect that maintenance capital needs to be low as we move forward, I would say over the next five years at a minimum.

Tom Kerr: Okay. All right. That’s all I have. Thank you.

Phillip Chan: Thanks, Tom.

Operator: And at this time, I would like to turn the call back to management for any additional or closing remarks.

Phillip Chan: Well, thank you very much everyone for taking the time to get on this call with us and get an update on Cytosorbents’ progress. We’re very excited about the near-term future, particularly with the pending completion of the STAR-T pivotal trial. If you have any questions that were not answered today, please feel free to reach out to Kathy at kbloch@cytosorbents.com, and we’ll try to get you those answers as soon as we can. Thank you, everyone, and have a good night.

Operator: Thank you. That concludes our conference for today. I’d like to thank everyone for their participation and have a great day.