With regard to CDKL5, we have identified compounds on that interact with a novel disease specific target in the CDKL5 since we are working together with Cyclica on and we are beginning to do the — basically, what we call analog-by-catalog screening with Cyclica to identify novel scaffolds that can interact with a target muscular rescued phenotype. And we have also identified 22 novel targets and hits from a high throughput screen that we did show disease specific rescue, which we are now on Vyant. So I think realistically, we expect to have identified molecules that have a potential to begin lead optimization in the early part of Q1 of next year. With regard to Parkinson’s disease, we have just received the isogenic cell lines for our familial target that we are beginning to validate now and generate organoid platforms.
We have been able to show disease specific reductions in dopamine content and TH neuron levels in organoids prepared for those familial lines, but we haven’t initiated yet on high throughput screening. Is that helpful or just
Ed White: Thank you.
Dr. Robert Fremeau: do you want to follow up on that at all?
Ed White: No. That’s helpful. Thank you very much.
Dr. Robert Fremeau: Yeah.
Ed White: Those are all the questions that I have.
Jay Roberts: Thank you very much, Ed.
Operator: Thank you. Your next question is coming from Lucas Wood from Ascendiant Capital. Your line is live.
Unidentified Analyst: Good afternoon, guys. Thanks a lot for the update. I have a couple of questions on the financial front. The first is, it looks like you had almost $1 million sequential savings in SG&A from Q2 to Q3. Could you shed some light on that and also just give us an idea if that’s like this level of $1.6 million is more of an indicative level of what you will be spending going forward?
Jay Roberts: Sure. It’s look like a high level.
Andy LaFrence: Yeah. I can
Jay Roberts: Okay. Andy, go ahead. It’s fine.
Andy LaFrence: No. Go ahead, Jay.
Jay Roberts: No. I was just going to say. So, obviously, the company has continued to find ways to reduce, particularly with a real eye towards our G&A costs. And so we are — I think a majority of that is going to be related to the continued focus of moving away from our services business and moving more toward our R&D efforts. And with that, we can, obviously, we can operate at a lower G&A costs, we have got inside with fewer people and we have got other related costs associate things like travel and so on that’s been reduced. I think that’s where you are going to see most of the savings. Andy, you can certainly jump in from there to like to add?
Andy LaFrence: Actually, you did a wonderful job of answering my question, Jay. You are spot on. So in terms of answering the question, in terms of ongoing SG&A expense, we do see right around that $6 million to $6.5 million our annual run rate has been indicative of that run rate, of which probably around $1 million to $1.2 million of that is related to stock-based compensation.
Unidentified Analyst: Okay. All right. And then sort of a related question on R&D, obviously, that went up a little bit. Is that on an upward trend or are we at a good level?
Andy LaFrence: Yeah. Yeah. Taking back to my remarks, we have signed the agreement in Australia with the CRO to commence the trial that Bob talked about. And so we do expect there to be some uptick in R&D spend later in the fourth quarter and into 2023 as we work through the clinical trial process. So you should expect there to be incremental R&D spend in 2023 as compared to 2022.
