Our AR balance has increased, as we said, about 10 million here in 2023. It gives a sense of the cash we expect to collect over the next several months. That should be weighed in as well when considering our cash balance. But ultimately, we’re always looking for ways to improve the organization. So I’ll let Kamal maybe speak a little bit to the cash burn for future quarters and how we’re thinking about that too.
Kamal Adawi: Yes. Thanks, John. So as John mentioned, AR was one of the items that we have to exclude to get to the number 3.8. And part of the reason why it increased from 3.2 to 6.9 from Q1 to Q2 was we’re holding all claims in Q2 where we started midway through the quarter in Q1. And so in regards to cash burn going forward, we’re providing guidance on a quarterly basis because sometimes there’s quarters like we just had in Q2 where we had very positive impact from that, just under 2 million of additional [indiscernible] received from prior periods into Q2. And it’s tough to see the timing of some of these items. That had a very positive impact on our gross margins. We saw those increased to 58.7%, but again very tough to project the timing of that.
On the previous call, what I had mentioned on the Q1 earnings was we were at a $7 million cash burn in Q1, and we see it gradually come down quarter-after-quarter. Now again, Q2 was a very pleasant surprise with the additional collections. But that wasn’t projected. And we did say that we would expect to see it come down slightly each quarter. That has not changed. That is still what we believe. We just had a really good Q2, but we believe that we’re going to beat year-over-year improvements. But again, starting at 7 million in Q1 and coming down from there.
Dan Brennan: Great. Thank you. And maybe just one last one, the 3Q volume guidance. Obviously, you guys are on a journey here over the next couple of years, so might be a loss in incremental. But why would the volumes go lower in 3Q given all the positive changes you guys are putting in place? I know you’ve talked about on the last call, maybe some in the near term, could have some disruptions from the sales force realignment, and then eventually you begin to see the positive benefit. But is that the reason why you’re guiding to sequentially lower volumes?
John Aballi: Certainly. So to give a little extra color there, Dan, in Q1, Q2, we expected some impact from the reduction to the sales force. We detailed that extensively. Of the 42 individuals that were caught up in the reduction at the end of December, a third of that was sales based. So we expected some impact of volume from reducing our U.S. base footprint by about 30% or so. That was factored into our Q1 and Q2 guidance. It didn’t happen, to be totally frank. And we’ve seen now multiple quarters that even with a more streamlined and condensed sales force, we’re able to deliver actually record growth here. So that’s been very pleasant. What we’re factoring in, in Q3 are some changes to our revenue cycle operations, which are being translated to the customer.
So just to give you a sense, one example, we’ve implemented a new billing policy this past quarter, towards the end of this past quarter, which increases the cost sharing proportion for patients on our testing. The price of the AVISE test really hasn’t changed in about a decade. And so we’re making those changes as we’ve telegraphed pretty clearly, as we pursue profitable, more profitable business. And so these changes will improve the profitability of our portfolio, we anticipate, but could have some near-term impact to volume. And so again, the magnitude and timing are always challenging to know ahead of time, but that’s really what we factored into in our Q3 guide.
