Greg Crawford: That’s actually a really good question, Doug. I can just tell you in real time and by looking at our results here and that we’ve just seen no slowdown in our business and don’t anticipate anything. I think it does make rational sense. So to think that if more patients do get in the pipeline in the funnel of the healthcare system, and they have sleep issues or anything in that and maybe don’t qualify for GLP 1, and it could drive volumes even further. It’s estimated that there’s over 20 million Americans that haven’t been diagnosed or treated yet for sleep apnea. So there’s a pretty big jam there for us to still and that have the availability in that to service.
Operator: Our next question comes from Ty Collin of Eight Capital.
Ty Collin: First one for me, just on the margin outlook for next year, are you kind of still seeing room for meaningful improvement there on an organic basis like you were able to achieve this year? And if that is the case, what are sort of the low hanging fruits there? Where are those opportunities?
Greg Crawford: I guess from a modeling perspective, if that’s kind of the driving force behind the question. I mean, we’ve always taken a conservative approach and I would say, I’m modeling internally, we suddenly model for what we currently has been some recent price increases that we have seen, which we have we were able to offset that using some other opportunities from a low hanging food perspective. So, I would say from for fiscal 2040, what you see for fiscal ‘23, I think that is still within a good plus and minus 5% range in terms of margins. 5% range in the sense of status not from a actual absolute swings.
Ty Collin: And then may, maybe sticking on that theme, some pretty strong sequential improvement here on the gross margin rate, it looks like about 150 bps quarter on quarter. Could you provide a little more context on how you were able to do that? And maybe if there’s any trends to take note of there?
Hardik Mehta: I mean nothing certainly in particular. I would say, I mean this is a little bit of a yearend audit situation, so there are sometimes adjustments that flow through Q4, which could be spread across a little bit farther out. But, I mean, we always say, you know, let’s not look at quarters, look at, at least two, three quarters in a row, or in this case you could look at, you know, kind of the whole fiscal year, kind of to look at directions.
Ty Collin: Okay. Great. And then last one for me, circling back to some of the earlier questions on the resupply patients, what’s sort of the average duration of your relationship with a resupply patient? Is it, you know, whether you’re measuring that in quarters or years? I think that would be helpful to round out that discussion.
Greg Crawford: Yes, sure. This is Greg in that, we estimate that to be about four and a half years and at the five years that the average resupply patient is around.
Operator: Our next question comes from Richard Close of Canaccord Genuity.
Richard Close: Yes, thanks for the questions today. Hardik, maybe if you could just go over the organic growth numbers for the fourth quarter and for fiscal ‘23 to begin with here.
Hardik Mehta: Sure. Thanks for that question, Richard. I mean, if we go back and look our fiscal ‘23, our organic growth rate year over year came around 6.7 to 7% from a organic perspective. And it gets a little tricky because, you know, you have companies that are part of the year in both periods. So there is a little bit of art to science, but that’s, something that 6.7 to 7% is what we believe our organic growth was for fiscal 2023. If we look at our, where organic growth and break that down a little bit further. The first half of fiscal 2023 had a lower organic growth rate. We know we were still recovering from some of the product issues and stuff like that. And then the second half of the fiscal ‘23 had a little bit, had larger than, you know, the 7% growth rate. So if you, if you break that down into two halves, then they both had a little bit different, but the average is, is around that. And then for the quarter, you know, we are kind of strong at about 3%.
Richard Close: Okay. And then with respect to bad debt, it ticked up little, I guess, sequentially. Was there anything specific? I mean, obviously strong improvement year over year, but maybe a little tick up from third quarter to fourth quarter. Was there anything specific driving that, or was it year-end cleanup or anything along those lines?
Hardik Mehta: I would say, I mean, it’s a slow and steady process on our end. We continue to work on it kind of chip at it along the way. There weren’t certainly any dramatic or drastic changes. It just, you know, when we acquired Great Elm, we also adopted some of the practices that came along with that. And I think what you’re seeing is a kind of a weighted average number for patent and revenue of the combined entities.
Richard Close: Okay. You beat that revenue —
Hardik Mehta : But having said that, we, sorry. We have always said, that is an area that we believe that there is opportunities to continue to work upon.
Richard Close: Okay. That’s helpful. You beat our revenue estimate in the quarter. I guess consensus I had is 62.9 million, so maybe a little bit below that was there anything specific maybe to the fourth quarter that didn’t come through in the quarter, that you can call out or anything to note there? I mean, obviously you’re talking about the first quarter, it sounds like things are going extremely well for the first quarter, but just curious if anything slipped.
Hardik Mehta: Yes. Hey, due respect to the consensus, but sometimes, you really can look at it. I mean, from that perspective some people don’t get the forecasting right quite frankly. But if you look at without the comparison to the consensus here, I mean, on a growth basis, I mean, there’s a pretty strong 3.7% organic growth. If we take out the month of pharmaceuticals that we I mean — it’s still about 3.5%. So it’s a pretty strong, uh, organic growth for the quarter. I understand for a consensus, a little shy, but I mean, we were kind of very pleased with that.
