Operator: . The next question is coming from Bert Hazlett of BTIG.
Robert Hazlett: With regard to the extra $26.5 million in nondilutive, nonrecourse financing, could you just talk about how the terms of that financing and the timing? What are the deliverables with regard to the arbitration that need to be affected to be able to access that?
Charles Theuer: I appreciate the question, Bert. Yes, I think it was an important event for TRACON that we engage in what could be term litigation financing. This is a nonrecourse financial vehicle, meaning if we weren’t to win the arbitration, we wouldn’t need to pay back even the amount already advanced of $3.5 million prior to end of last year. With respect to further draws on that facility, we are entitled up to potentially $30 million. That includes the $3.5 million already advanced. That leaves $26.5 million that potentially is accessible and that’s successful based on the award exceeding a certain threshold. Upon the initial announcement of the award exceeding a given threshold, then we would be entitled to take 25% of that, which, for instance, could mean $7.5 million immediately upon announcement of the award.
Thereafter, we’re also entitled to take additional amounts up to a total of , and that’s is done over an 18-month period of time. So it basically is an award that allows us to have resources to enforce the potential award or so I should say, it’s a facility that allows us the resources to enforce a potential award, but also to continue to run our operations and complete the full data analysis of the ENVASARC trial to facilitate the expected BLA submission.
Robert Hazlett: That’s very helpful. And then just thinking about — well, I guess follow-up to that. In terms of enforcement of the award, again, this is binding arbitration. I think I’ve asked this before. I think we’ve talked about this before. What additional elements would there be for a party, either you or them, to challenge this arbitration award?
Charles Theuer: Yes, great question, Bert. So typically — and I think you can also instructive in these cases, for instance, as the recent arbitration award that received from Sorrento, which is, I think, about $180 million or so. The initial award was binding arbitration. It was confirmed, I think, within about 2 to 3 months thereafter and then is due. So we would also engage in those similar steps following an award announcement through binding arbitration that has confirmed the award and then expect to collect it with the potential enforcement starting immediately upon the award announcement, but further aided by the confirmation of the award in a U.S. court, for example.
Robert Hazlett: That’s great. Just moving — one other question then. Just moving toward future directions, can you — got a presence in sarcoma with regard to envafolimab and YH001. How are you thinking about assuming monies come in and you’ve got your platform, how are you thinking about the types of additional molecules you would like to be involved with? Are you focused on sarcoma activities? Or how should we think about the future directions that TRACON could be headed in?
