Ron Holtz: Thank you.
Operator: Thank you. And one moment for our next question. And our next question comes from Mark Massaro from BTIG. Your line is now open.
Vidyun Bais: Hi guys. This is Vidyun on for Mark. Thanks for taking the question. Just a quick clarifying one, on the 2023 guide, just to confirm, are you excluding any material economics from SPL partnerships with respect to regulatory approvals, such as the FDA or other agencies?
Ron Holtz: Yes. That’s a very good question. So, if you look at the $6 million guide for SPL program-related revenues. We come to that number by doing a broad and as scenario analysis, risk-adjusted numbers looking at all the potential milestones that may occur in 2023 based on what our partners were saying about their progress for all the programs that they have in the clinic. And we do that analysis and we come looking for a number that we can feel confident that the company can achieve. It does include some approval milestone revenues, but there has been multiple scenarios that would allow us to get to that number. If you look back at where we started in January of 2021, and when we guided to $4 million, I would have told you I was very confident that we would hit that number.
And if you ask me how we would get there are really €“ that was not €“ it wasn’t something that was predictable because there were many ways to achieve it. And I think we are in the same position here. We have a $6 million guide. There are multiple ways for us to get there. We expect that some approval milestone revenue is a part of our achieving that $6 million number. And the challenge here is you have a small number of large dollar events and coming up with a straightforward way to communicate what our expectations of that is involved that scenario analysis.
Vidyun Bais: Thanks for taking the questions.
Operator: And one moment for our next question. And our next question comes from Max Masucci from Cowen. Your line is now open.
Unidentified Analyst: Hi. This is Stephanie on for Max. Thanks for taking my questions and congrats on a great year. It would be great to get some color around your VLx, early access contracts and the structure of those agreements. Did you realize material revenues from those early access contracts in Q4? And what are you assuming for VLx revenues in your guide?
Ron Holtz: Yes. So, we are early with VLx with the launch just in November. There was VLx revenue in 2022, and we expect to grow that this year. We are pleased with how the pipeline has developed in the short time that’s been in place. Developing the business model is something that we are very focused on and we are taking a similar approach that we took with the SPL revenue. So, when we did our first SPL, we sat down and came together with a clear understanding of what we believe the value was. We shared that with customers. And then we modified that approach as we learn more about what customer need €“ customers needed in a structure that would suit them that still delivered that value to us. We have an approach in the market now, and we are going through that process of massaging that, if you will, as we learn more from customers about what suits them for this particular offering.
Unidentified Analyst: Got it. That’s helpful. Thanks for taking my question.
Doug Doerfler: Thanks Stephanie.
Operator: Thank you. And I am showing no further questions. I would now like to turn the call back over to Doug Doerfler for closing remarks.
Doug Doerfler: Well, thank you, operator and thanks everyone for joining us today for our earnings call. We look forward to providing an update on the first quarter later this spring. Thank you very much. Look forward to subsequent discussions.
Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.
