Jonathan Aschoff: Okay, and the second part of that question was the R&D drop. Should that be substantial this year versus 2022?
John Gay: Yes, so obviously with the reduction of the clinical trial, so it will–you know, we ended out the year down as it relates to prior periods, clearly because of the cost and nature of the clinical trials, but we will continue to have R&D expenses as it relates to the activities associated with the regulatory process, right, so as we continue to move toward the PDUFA goal date of January of next year, we will continue to have R&D costs associated with that, or costs that will be categorized as R&D because obviously prior to approval, the nature of those expenditures will be characterized as R&D. I think it’s fair to say that we will continue to have a relatively consistent R&D spend as we move toward the regulatory approval process.
Jonathan Aschoff: Okay. Does the year-end ’22 cash of $12.3 million include the $5 million that was booked in the fourth quarter, or does it not include that?
John Gay: It was not included, Jonathan. We had it as an account receivable, but we did collect that in January.
Jonathan Aschoff: Okay, and how much of it is paid out to a third party?
John Gay: $1.25 million–
Paula Brown Stafford: Twenty-five percent.
John Gay: –or 25%.
Jonathan Aschoff: Okay, and how much of the $15 million facility has been used?
John Gay: At the end of the year, we had $10.3 million as it relates to what had gone through as of the balance sheet date, but you can see it in our statement of cash flows, we had almost $20 million of usage, $18 million or so end of fourth quarter.
Jonathan Aschoff: Okay, but there’s no subsequent event footnote in the 10-K about usage subsequent to the fourth quarter end?
John Gay: That’s correct. We continue to utilize it at our discretion, but that’s correct. I think it’s fair to say that just the nature of commercial business and the nature of our payables and account receivables cycles and timing with our customers and vendors, it’s advantageous to have a working capital line, so we do continue to utilize it. It’s all again subject to our gross sales and activity from a TRx perspective.
Jonathan Aschoff: Okay, thank you very much, guys.
John Gay: Certainly.
Paula Brown Stafford: Thanks Jonathan. Operator?
Operator: Yes, thank you. The next question comes from Oren Livnat with HC Wainwright.
Oren Livnat: Thanks for taking the questions. I was hoping to talk bigger picture as you look forward to the SB206 potential approval in January. Can you just talk about what you’re able to do with the EPI business in place in terms of, I guess, priming the pump, so to speak, as like you said, we’re only theoretically nine months away and you’ve got boots on the ground already. What are your reps able to do now before a product is approved in terms of education, if anything, in terms of awareness building molluscum, and also when you think about a potential catalyst in another in-office procedure for Verrica’s product getting approved in July potentially, what kind of impact do you think that has on awareness in the space, and do you think that helps or hurts you guys heading into January approval of your own? Then I have a follow-up, thanks.
Paula Brown Stafford: Okay, thanks Oren. Our reps, we are not able to train them or prime the pump because we do not have an approved product. Our sales reps are aware and are excited to potentially have something to begin to talk to their healthcare providers about, but they cannot do so until it’s approved. If you will, the only way to prime the pump is through education, and we do that with our medical affairs group, and so we actually have four individuals in our medical affairs group and three of them are dedicated to really SB206, and that is around publications, presentations at meetings, be it abstracts or posters, or full on presentations. We were active at the AAD, the American Academy of Dermatologists meeting, which was just two weeks ago, and we were very active there and had a late breaker presentation that Dr. John Browning, one of our KOLs presented, and that was very exciting for us.
