Richard Paulson: Yes. And for the second part, look at the updated agreement, so I’ll turn it to Mike to touch on that point.
Michael Mason: Sure, Brian and especially I think you’re referring to the amended agreement with HCR. So that’s still stays consistent where in that case, they do get — their return is capped at 1.95x. So that would stay the same. And as far as the convert, we have customary make-whole provisions in the agreement.
Operator: Your next question comes from the line of Ed White from H.C. Wainwright.
Ed White: Just one for me. The SVA has trended lower and I was just wondering if with all your cost reductions, — are they all in place now? Is the sales force rightsized now? And are you expecting to see further lower expenses in SG&A? Or are we sort of at a more stabilized level now?
Richard Paulson: Yes. Thanks, Ed. I think as you know, we’ve had a strong focus on really being very diligent with regards to our capital allocation, reducing head count to being very focused in our pipeline and we’ve been able to obviously see those benefits come through over the last year. And overall, those benefits will continue. And we don’t see the focus right now is on our late-stage pipeline and we’re going to continue that focus. At the same time, our commercialization capability and our commercial team, as we talked to is profitable with regard to our multiple myeloma business right now driving a 2:1 ROI and really helping to fund our pipeline. So I think we have the right resources in place. And maybe, Mike, do you want to add some detail?
Michael Mason: Just a little more detail. I mean I think we’ve been running right around $30 million Q3 last year, Q4 last year, Q1 this year and we expect it to be consistent going forward.
Operator: [Operator Instructions] Your next question comes from the line of Jonathan Chang from Leerink Partners.
Jonathan Chang: We’re still working through the math on the refinancing agreements and amendments announced this morning. So just a couple of hard level questions for now. One, what are the key implications of these agreements with the equity holder — and two, what is the impact of these agreements on your cash runway guidance? It doesn’t seem to have moved that much but I might be missing something.
Richard Paulson: Yes. I think we’ll turn to Mike and maybe Mike, we start with number 2 first and then go to number 1.
Michael Mason: Sure. Our cash runway guidance is now into the end of 2025. So it was between the $30 million of cash coming in our current operating plan as well as the new interest payments offset by the lower royalty payments take us into the end of 2025. And then do you want to touch on the first part?
Richard Paulson: I’m happy to. So I think overall, the important thing here for equity holders is there’s a lot of excitement around our Phase III program. So we want to strengthen our balance sheet to unlock value by extending maturity of our debt obligations well beyond our planned data readouts and potential accruals. So we took advantage of the convert trading at a discount and exchange them at a 25% discount supply. From a timing perspective, why now, we wanted to address this before it becomes current. So as we’ve said in the past, we really want to address this within 12 to 24 months of maturity and we’re sort of right in the in the middle of that sweet spot. So overall, we’re pleased to have the vast majority of our debt obligations well beyond our expected data readouts and potential approvals.
Operator: [Operator Instructions] there are no further questions at this time and I’d like to hand over the call to Richard Paulson for closing remarks.
Richard Paulson: Thank you, operator and thank you again to everyone today for joining us. As we’ve really highlighted on the call, very pleased with the substantial improvement in our capital structure. We’ve strengthened our opportunity to realize the full value of our late-stage pipeline with our 3 Phase III clinical trials. And we’ve touched on the fact that each 1 of them would be transformative for patients and transformative for organizations. So — we’re continuing to be focused on delivering our next stage of growth. And once again, I want to thank you for joining us today.
Operator: Thank you. Ladies and gentlemen, this concludes today’s conference call. You may now disconnect.
