Operator: And our next question comes from Eric Percher from Nephron Research.
Eric Percher : I think I just have two simple ones left. First, congrats on getting to cash flow breakeven. I do want to ask, is there dependency in maintaining that on coming to agreement with this client? Is there any chance of back stepping from breakeven?
Brent Layton: Justin, I will let you go with this one, sir.
Justin Ferrero: Yes. There’ll be an impact. We need to resolve this in order to maintain cash flow breakeven. But there’s things that we can do as a business to offset that, which we’re looking at. But again, Eric, we’ve been focused on being cash flow positive as we’ve talked about all year. It was a big push. We’re all thrilled that we achieved it. The Q1, as you know, is seasonally is a lower quarter for us. So, we expect some burn in the first half of the year. But we think that we’ll, it’ll be very similar. We think that we can get back to cash flow breakeven is the long-term answer. So, we take it it’s a challenge for us and we achieved it. And although there may be a short term hit, we’ll get back to it.
Eric Percher : That’s appreciated and we heard you loud and clear on the cash on the balance sheet. Maybe slightly related, is it possible to size the annual impact of the disputed contract, not asking for ’25, but looking back over ’24 to give us some measure here?
Justin Ferrero: Well, it could potentially be as large as rolling forward Q4 in that realm. It could potentially be there. Now please know that we are again, this is part of why we haven’t guided. We are working very diligently to resolve the dispute and so we’re hopeful that that won’t be the case.
Eric Percher : And then the last one, I wanted to take the bait on the GLP-1 commentary. Are you well, I’ll ask what are you doing there? And I assume that this is relative to behavioral engagement and not in the realm of fulfillment. Do you partner for fulfillment? How are you working with payers in that space?
Brent Layton: I’m going to let Jeff take the honor in that. He has led the charge on that and he’s been talking ever since we got here on day one. So, Jeff, I’m going to let you take that one, sir.
Jeff Arnold: Sure, yes. On the GLP-1 front, Eric, as we’ve talked about in the past, it’s an exciting area. And similar to our business, we’re taking a holistic approach and looking out how we can combine our unique assets to have a differentiated offering. And so, we’ve been working with our medical team to really understand what’s the right criteria based on our claims data and then using our analytics to be able to onboard those people based on eligibility. And yes, we’ve been working on different ways to source the GLP-1s, whether it’s from compound pharmacies or directly from manufacturers. And then how to leverage our behavior change program, our DPP approved Eat Right Now as well as our unwinding anxiety. And then lastly, how to use our We Care Rewards platform for adherence.
And so, we’ve kind of stitched all this together in a really elegant interoperable way and have now, are now in our go to market like talking to our clients and thinking through, how to address affordability. And that’s where some of the compound and pharmacies have kind of come into play. But we’ve been doing that in partnership with the client.
Operator: And our next question is a follow-up from Richard Close from Canaccord Genuity.
Richard Close: Yes. I just wanted to follow-up on the contract disputed contract. Just on the EBITDA, I mean, you classify it as roughly a $6 million impairment. Is that just the fourth quarter? Or is that a combination of maybe several quarters? I know in the answer to the, one of the recent questions, you said look at the fourth quarter and roll that forward, but just clarity on the EBITDA would be helpful.
Justin Ferrero: Yes. There’s contracts which we label. Specific to the impairment, we took the impairment all in the fourth quarter, which we were amortizing through contra revenue over the term of the relationship. But we went ahead and took a worst-case scenario. But there could be other items of these contracts that impact EBITDA going forward. Which is why I say rolling this forward is the right way to look at it. But specific to that impairment, we impaired that asset in full.
Richard Close: And then, Brent, maybe on the Medicaid, the navigation platform for Medicaid. So just help me out here. Is the customer the state, that you would be selling this to? So, you sell it to the state and they maybe require all the managed care organizations for managed Medicaid to provide this to their to the population or is it you are essentially contracting with the managed Medicaid organization?
