Dennis McGrath: Yes. So the OpEx on a GAAP basis for the last couple of quarters has been in the $12 million or so range. And the triggers for us are clearly on realization of payments. And so with the multiple streams, revenue streams, they will have different influences on where that OpEx goes. To the extent that policy insurance policy changes positively at a quicker rates, we will start adding additional salespeople, because that means calling on physicians. On the direct contracting side, that typically requires less selling resources. Now we’ve adding to expanded that group from one to two. We’re in the process of expanding from one to two, because that pipeline is growing rather fast. The sales cycle there, is a little bit longer, but once it gets started, the test volume, the ability to increase test volume and therefore, payment associated with that is more dependent upon the clinical side of things.
And we will add resources directly related to that, because that payment is guaranteed. We’re not guessing in terms of what we’re going to get paid during that period of time. So they – those two streams will influence what happens in sales and marketing. I think on the marketing side, we’re still a couple quarters away from stepping on the gas pedal where advertising will be a component of OpEx. That’s probably more of a ’25 event. So modest increases for the next quarter or two, the second half of the year, I think that you could start seeing some acceleration in the sales cost line. I think from a research and development or regulatory, or clinical research standpoint. I think our level that we’re presently at stays fairly flat, for the next couple of quarters.
Joseph Conway: Okay. Great. Yes, that’s super helpful. Thanks for that color. Maybe – and then maybe one on Medicare, the technical assessment process. I guess you guys are expecting that after submission and that starts to take anywhere from six to 12 months. I don’t know if you have like more narrow timing on that, just given your relationships, the meetings that you’ve already had with Medicare, but I guess just maybe some more color on that final approval date, or final reimbursement decision that you think?
Lishan Aklog: Yes. Certainly, we’re not in a position to make sort of any kind of hard prediction as to when that happens. I sort of mapped out how – what the triggers are for us to request a pre-submission meeting. And then based on the results of that meeting, we’ll be ready to submit the technical assessment immediately following the pre-submission meeting with MolDX and we intend that to be in a personal meeting in Houston. So technically, the TA process is to turn around in 60 to 90 days. Now like FDA, I think anybody who’s been involved in an FDA process, which since its 90 days, there’s an opportunity to stop that clock, right? They can stop the clock and ask for more information and so forth. So it’s a cumulative 60 to 90 days that can stretch on for a period of time.
But it’s very hard to say once that process starts, just like with an FDA submission, whether you sort of went through that 60 to 90-day window, or as a result of inquiries along the way and pauses that stretches out beyond that. So, really no way for us to predict at this point.
Joseph Conway: Okay. Great. Yes, thanks for taking our questions.
Lishan Aklog: Great, thanks, Joe.
Operator: Your next question comes from the line of Anthony Vendetti from Maxim Group. Your line is open.
Lishan Aklog: Anthony, good morning.
Anthony Vendetti: Thank you.
Dennis McGrath: Hi, Anthony.
Anthony Vendetti: Hi, Lishan. Hi, Dennis. How are you doing?
Lishan Aklog: Great.
Anthony Vendetti: So I just want to – so I know you switched to a new revenue cycle manager, I believe, mid last year and you’re doing a much better job in terms of being able to get reimbursed. I think in the – you’ve submitted approximately the commercial government pay is $20 million, and the vast majority has been adjudicated with half resulting nearly half and the allowed amount of $1,800 per test, which seems very, very positive and much better than what you were doing originally. Does that mean if we – and I guess the definition of vast majority, does that mean there’s maybe $8 million maybe in revenue that you would expect in the pipeline, $8 million plus or how should we look at, what’s left to be adjudicated?
Dennis McGrath: Yes so.
Lishan Aklog: Go ahead, Dennis sorry.
Dennis McGrath: So your thesis is correct. So when you look at $20 million of submitted claims and the adjudication of 80%, 40% is an allowable amount, you’re talking about $8 million or $9 million of possibility. That can be diminished by what the patient share of that will be. It also should reduce for what we have collected so far, which is nearly $2 million. There is a backlog of amounts awaiting for collection that could be as much as $9 million. I think looking at that in the range of $5 million to $6 million is probably more of a realistic view, but there’s uncertainty about it. So what gets paid of that, we’ve got this average that the information we’re getting from Quadax, puts the allowable amount right at $1,828 in the last quarter, which is holding.
And I think the prior quarter was just slightly higher than that, maybe by $10 or $20 more. So it’s in that range. But there’s still some uncertainty about that, to try and figure out exactly what we’re going to collect because of the patient’s contribution and the timing related to when we’ll get it.
