Patrick Williams: Yes. So primarily is one of the reasons if you think about 2023 and going back, we did see an increase in what I’ll call compensation including stock-based compensation. We brought on quite a few C-suite members including Tom who joined us a little over a year ago. And so we’re seeing the effect of that carrying through our G&A line. To your point the guidance that I gave was a full GAAP number on G&A. But as you exclude out stock-based comp primarily out of G&A you’re going to see a much more normalized number. R&D and sales and marketing like you said are pretty in line with where The Street was at. But we’re consistent with what we said in early January which is slightly above on operating margin be up breakeven on pure net income.
But the adjusted EBITDA profitability is north of 10%. And the model is built so that if we do exceed or come in at the high end of our guidance or even go over that that you’ll see that incremental dollar translate to the bottom-line quite strongly as it historically has.
Operator: Thank you. And our next question today comes from Tom Stephan with Stifel. Please go ahead.
Tom Stephan: Great. Hey, guys. Thanks for the questions. I wanted to follow up on China and the second distributor that you guys added. Maybe can you elaborate a bit on the strategic rationale there and I guess the impetus for adding an additional distributor? Why now? And was your existing partner may be lacking in certain areas?
Tom Frinzi: I think Tom it’s just a natural evolution of the business. When Langsheng and STAAR partnered together we were just really launching in China. We’ve grown together. But clearly as the opportunities in that market continues to grow it just was a natural evolution of it was time to take on an additional partner. I think their depth and breadth will help us continue to gain share and grow our business in China particularly as we mentioned in our prepared remarks in Tier 3 and Tier 4 cities. So I think both coexist nicely and really continue to position STAAR Surgical in the EVO ICL for future growth.
Operator: Thank you. And our next question comes from Jim Sidoti with Sidoti & Company. Please go ahead.
Jim Sidoti : Hi. Good afternoon and thanks for taking my questions. Can you talk about the steps you’ve taken to make it easier for lens selection? And are there additional steps you can take on that front?
Tom Frinzi : Yes. Jim thanks for the question. I mean, it really is one of our key focuses. And as we’ve said in our prepared remarks, we’re looking at a lot of different things in the area of AI. We’re certainly — we have these two papers coming out that are going to add a lot of strong support for how to approach the preoperative, intraoperative and postoperative management of EVO potential candidates. And just getting our infrastructure set up with this global training initiative, we’re doing around clinical and practice development and sales to really have that really best-in-class combined with all the other efforts we’re doing, we just believe we’re surrounding the customer appropriately to make this a very predictable a very routine procedure.
Jim Sidoti: All right. And then a follow-up. The relationship with SharpeVision, how long did it take to get that contract signed? And do you think having that in place will maybe easier to get additional physicians to sign on?
Tom Frinzi: Yes. I think not only having that contract in place, but just the momentum that is beginning to build in the U.S. marketplace SharpeVision is a manifestation of that. But as I said sitting here at this meeting and seeing the amount of enthusiasm and interest that people are beginning to talk more and more about lens-based refractive surgery and why that makes sense. So I think naturally the effort we’ve been putting in for the past 15 months is going to start to bear fruit, as we said in the back half of this year. And we continue to feel good about how the year has started for us. So I think more contracts will come. We have good leadership for the U.S. business. Warren Foust, our Chief Operating Officer has taken a real hands-on approach and working very closely with our U.S. leadership. So I think I feel very positive about our efforts to-date and feel good about the marketplace beginning to recognize the value of EVO ICL.
Operator: Thank you. This concludes the STAAR Surgical Q4 earnings call. You may now disconnect your lines, and we thank you all for attending today’s presentation.
