Sareum Holdings (LSE:SAR) — Half year results for the six months ending the 31st December 2020

0:03 Good morning, ladies and gentlemen, and welcome to the SAREUM HOLDINGS PLC Half Year Results Investor Presentation. Throughout this presentation, investors will be in listen only mode. Questions are encouraged and can be submitted at any time via the Q and A tab situated on the right hand corner of your screen. Please just simply type in your question and press send. The company may not be in a position to answer every question it received during the meeting itself. However, the company review all questions submitted today and publish responses where it is appropriate to do so. These will be available via your

0:34 Investor Meet company dashboard, and we will email you when they are ready for your review. I'd also like to remind you that this presentation is being recorded. We begin, we would like to submit the following poll. And if you could give that your kind attention, we'd be most grateful. And I'd now like to hand over to Stephen Parker, Chairman of SAREUM HOLDINGS PLC. Good morning.

0:59 Good morning, everybody. Welcome to this interim results call. We will follow the usual format, which has largely been described to you, but we'll start with a a few slides to summarize progress of the company, which will be led by Tim Reeder, our CEO sorry, Tim Mitchell, our CEO, and John Reeder, our CSO, depending on the the the the content of of the slides. So without further ado, I will pass you over to Tim. Thank you, Steven. Yes. So good morning, everybody. I'm Tim Mitchell. I'm CEO and cofounder of of SAREUM. And thank you for me for joining us as we present our progress and financial results over the last six months.

1:45 So firstly, I'm just apologizing the delay in publishing these results. As I'm sure you're aware, the COVID pandemic has made everything that little bit harder, Plus, we've also restructured our finance systems and personnel over the last few months.

2:03 Before we start, I have to display this disclaimer. We'll now move on. Our business model, as I'm sure many of you are aware, is to do the early stage design and development of new drug candidates and then license them on to larger pharmaceutical companies for further clinical developments and licensing. We have an exciting pipeline of internal and partnered pipeline assets that address emerging high value disease targets. This business model has been validated by our Check-one Kinase cancer program shown in the box on the right there. So working with Cancer Research UK funded organizations, we developed the molecule SRA737 and took it into Phase one clinical studies before it was licensed to SAREUM HOLDINGS in a 300,000,000 deal.

2:53 Internally, we're focusing on our TYK2JAK1 kinase inhibitor programs. We have SDC1801 targeting autoimmune diseases, including a particular current interest, the cytokine storm that's often the cause of death in COVID-nineteen patients and also SDC1802 targeting cancer and cancer immunotherapy. We're a very experienced team of management directors and advisors with a deep understanding of drug design development and commercialization, who I'll now introduce you to. So from the top, Steven Parker, our chairman, has a long career in healthcare and pharmaceutical corporate finance and development.

3:41 I've worked in large medium and small pharmaceutical and biotech companies for over thirty years now with seventeen of those being at SAREUM. John Reeder, CSO, has a long career in research in biotech, both in The UK and The US and has likewise been at SAREUM with me for seventeen years.

4:03 Michael Owen, Non Executive Director, was biopharmaceuticals head of research at GSK before leaving to be a co founder and CSO of Kymab. Mike has a long expertise in immunology, which is particularly useful to us. And then Clyde Birch, also non exec director, has a career in audit specializing in early stage healthcare companies and is a great asset with our compliance and corporate governance. So this is a snapshot of our research pipeline. At the top, we have our TYK2JAK1 programs with SDC1801 nearly completing its preclinical studies in autoimmune diseases and the COVID program running alongside it.

4:52 SDC1802, the cancer and cancer immunotherapy program is a little further behind in its preclinical development. SRA-seven thirty seven, the CHECK1 inhibitor has completed two Phase two clinical studies now, one as a monotherapy and the other in combination with low dose gemcitabine. As well as the gemcitabine combination, there's an emerging body of preclinical data on combinations with other targeted cancer therapies, such as PARP1 inhibitors and also cancer immunotherapy. And we'll say more about all these programs in some later slides.

5:34 So if we move on now to the highlights over the last six months or so then, we've made substantial progress in particularly our TYK2JAK1 programs despite the challenges of the COVID-nineteen pandemic. So with SDC1801, we have our final preclinical studies either underway or scheduled with intent to file CTA, that's clinical trials authorization towards the mid of this year.

6:02 At the end of last year, we announced a 174,000 grant from UKRI, that's UK Research and Innovation to study to fund some preclinical studies to explore the potential of SDC1801 against severe respiratory inflammation caused by COVID and other viral infections. And in a half year report that we released last week, we noted that there was encouraging initial results demonstrating regulation of the key cytokines involved in COVID-nineteen in an experiment performed in human lung cells. The final results from this study are expected in the middle of this year. And then for STC-eighteen oh two, the cancer and cancer immunotherapy program, we're currently designing translational studies to define the optimal application the optimal cancer application for this molecule prior to completing the toxicology and manufacturing studies we need to get into clinical trials.

7:06 And then beginning of this year, we also noted that the patent has been granted for the molecule in The U. S, which now completes our IP protection for this program in all major territories worldwide. Moving on to the Check-one program then, at the back end of last year, we announced that an amendment to the license agreement between Sierra and our partners, the CRT Pioneer Fund, which we expect to expedite further development of this program. I'll go into more details on that on a later slide rather than duplicate myself here. And then also early this year, we noted an AACR poster from the Institute of Cancer Research team showing the potential of SRA-seven thirty seven in combination with AZ3-one inhibitor adobusertib in ovarian and breast cancers.

8:01 On the financial results then we noted a reported cash of $1,300,000 in the bank and a loss after tax for the half year of just over $500,000 similar to the loss we've been running through in previous periods.

8:24 I just have a quick word on the impacts of us of COVID-nineteen to our operations then. So we are fully operational during or throughout the pandemic, while we follow the government advice to minimize risk to our staff. But we have seen some impact on the company's network of CROs, particularly in lead times to initiate new experiments. And we believe this may extend if there are further restrictions on work and movement. So this is mean the final preclinical studies of particularly the eighteen oh one program have been delayed slightly. We had been hoping to file the CTA earlier in this year, so we now expect it to be mid year.

9:17 So let's move on to do a more detailed look of our research programs. Starting with TYK2 and JAK1 then. So these are members of the JAK family of cell signaling enzymes, which are important for maintaining a healthy and well balanced immune system and as such targets of great interest to pharmaceutical companies. There's been good clinical validation for both TYK2 and TYK2JAK1 combinations from BMS and Pfizer in psoriasis and psoriatic arthritis. And these companies are also running further Phase II trials in several other autoimmune diseases, including lupus, ulcerative colitis, Crohn's with readouts expected this year and next. So with that, I'll hand you over to John to update you on the status of our programs.

10:09 Thank you, Tim, and good morning, everybody. The JAK family kinases transmit extracellular signals from cytokine receptors, which are expressed expressed on on the the surface of cells, and they transmit that signal through to the nucleus via the STAT transcription factors. First generation JAK inhibitors such as Eli Lilly's paracitinib, Pfizer's topacitinib target JAK2 and JAK3 as well as JAK1. And it says JAK2 and JAK3 inhibition that, is believed to be responsible for the FDA black box warnings for serious infections, lymphoma and thrombosis that have been issued to the first generation JAK inhibitors.

10:56 SAREUM's next generation JAK inhibitors target TYK2 and JAK1, which signals therapeutically relevant cytokines such as interferons alpha and gamma, interleukins six, twelve and twenty three that are associated with autoimmune diseases such as psoriasis, rheumatoid arthritis, IBD and lupus. Our inhibitors are very selective against JAK-two and JAK-three, So we would not expect to see the serious side effects that can arise from JAK2 and JAK3 inhibition. As well as autoimmune disease, TYK2 is associated with certain cancers. In particular, we see that TYK2 and JAK1 modulation of the local immune system results in significant, tumor reduction in many cancer models that we've looked at.

11:52 Also viral diseases such as COVID-nineteen and flu can be fatal due to an overreaction of the body's immune system called a cytokine storm and TYK2 and JAK1 are believed to play an important part in this cytokine response.

12:14 So we believe there are clear opportunities here for SAREUM. There are currently no TYK2 selective products on the market, and there are no selective TYK2 inhibitors in clinical trials for cancer that gives us a first in class opportunity.

12:33 As you've heard, we are developing two distinct TYK2JAK1 kinase inhibitors. Both are potent inhibitors of TYK2 and JAK1 with good selectivity over JAK2 and JAK3 and the rest of the kinome. In our mouse model experiments, we dose the compounds, orally twice daily. But, based on modeling, we believe we'll be able to dose once daily in any human studies. We've mentioned the potential of the TYK2 JAK1 inhibitors to treat the cytokine storm, the fatal overreaction in many COVID-nineteen patients, and we'll say a little bit more about that in a later slide.

13:26 So our internal focus is on completing the preclinical studies for SDC eighteen oh one and SDC eighteen oh two so that their clinical development can be initiated. The manufacturing route for SDC eighteen oh one is complete, so we're able to manufacture hundreds of gram quantities for our toxicology and for clinical studies. We also, developed a formulation that's suitable for getting the high doses of compounds that we need to, deliver for our toxicology studies. And as we've noted previously, we're aiming to complete these studies and apply for a clinical trials application to initiate trials towards the middle of this year.

14:18 We're working on the translational studies to define the optimal cancer application for SDC1802 before we complete the tox studies for that molecule. The manufacturing route, is very similar to that used for SPC1801 is almost complete. We've presented these programs to many potential pharmaceutical partners and we'll be looking to strike commercial licenses anytime really from CTA onwards, always bearing in mind the risk to return the balance of an early versus a later stage licensing.

15:04 Moving on to the role of TYK2 and JAK1 in the cytokine storm, the overreaction to viral infections. We've noted, a growing body of literature evidence to support the potential of a selective TYK2 JAK1 inhibitor, to be an effective therapy here. COVID nineteen and other viral diseases can be fatal due to the cytokine storm overreaction of the of the immune system that goes on to severely damage the lungs and other organs. And most of the key cytokines that have been found to be elevated in COVID nineteen patients, that have been admitted to intensive care signal via the JAK family kinases. Both Pfizer and Lilly have recently announced clinical trials on their JAK onetwo or JAK onethree inhibitors, tofacitinib and baricitinib in COVID-nineteen patients.

16:02 And suddenly in the baricitinib trial, least reduced mortality and time to recovery reduced time to recovery has been reported. Viral lung infections can also lead to secondary bacterial infections such as pneumonia causing further complications in patients with severe COVID nineteen. There's good evidence in the literature that TYK2 and JAK1 inhibition should restore the body's protection against these bacterial infections, whereas JAK2 inhibition by, for example, baricitinib is likely to downgrade the defense to bacterial infection.

16:52 So this all points to TYK2 JAK1 inhibitor that is selective against JAK2 having an optimal profile here, and that's exactly what we've got with STC1801. We were awarded a grant from UKRI in December last year to investigate STC-eighteen oh one in cellular and animal models of COVID. And we've seen encouraging initial results from cellular studies that show that SDC1801 does indeed reduce the levels of cytokines associated with the cytokine storm in human lung cells that were infected with SARS CoV-two virus. We expect to complete these studies, including the mouse model studies, by the middle of this year.

17:42 And we're also encouraged by the amount of UK government support for COVID research as well as the UKRI funding we've received. There are opportunities from other areas such as the therapeutics task force, the agile, early clinical development platform. There were some other developments announced this week for antivirals task force. The government's really getting behind research in this area, and we hope and expect that we can benefit from that. Moving on then to our partner candidate, SRA-seven thirty seven, a Check-one inhibitor, as well as completing two Phase II clinical studies in the hands of our licensed partner, Sierra Oncology.

18:35 SRA-seven thirty seven has continued to show exciting potential in a number of preclinical combination studies. So we've previously reported the triple combination of SRA737 low dose gemcitabine and the immune checkpoint therapy, which is shown in this xenograft on the left hand side of the slide, where we're seeing one hundred percent tumor regression in this preclinical model of a small cell lung cancer.

19:07 Last month, it was reported at the AACR that combination with a new type of targeted anti cancer therapy known as V1 inhibitors also leads to good tumor regression in a preclinical ovarian cancer model, and that's shown in the chart on the right. The monotherapy trials with SRA737 and the combination trial with low dose gemcitabine both highlighted the excellent safety profile of SRA737. And this makes it really suited to combining with other agents.

19:44 And hopefully, we won't see any additional safety signals arising from the SRA-seven thirty seven being added into those combinations. Okay. I'm going to hand you back to Tim to complete the rest of the presentation. Thank you, John.

20:12 I'm sorry, I've jumped ahead too much. So I'll just finish this part of the presentation with the current clinical development status of SRA737. So the program had been stalled in development while SAREUM decided its way forward. Towards the end of last year, we announced the license agreement between our partners, CPF and SAREUM HOLDINGS had been renegotiated. So this reduced the total amount of milestone payments, as you see from around $320,000,000 to $290,000,000 but introduced a new payment of $2,000,000 that would be due on the first patient in any next clinical trial.

20:51 SAREUM still remains eligible for its 27.5% share of the deal, which would result in a $550,000 payment being payable on the next milestone and our share of future milestones totaling up to 79,750,000 plus of course the royalties are unchanged in the deal.

21:14 So the license renegotiation reduces the financial hurdles for the continuation of the clinical development of SRA-seven thirty seven And we believe this will expedite its further development and we look forward to providing updates as and when we hear from Sierra.

21:35 So I'll move on now to the financial reports results that we reported last week. So looking at the income statement, we see a loss there of around GBP 5 and 50,000 That's entirely consistent with the loss from previous years.

21:57 And then moving on to the balance sheet. We see a cash balance of around GBP 1,300,000. Yeah. Okay. So if we look forward now to what we might expect to achieve during the rest of 2021. So we're looking forward to reporting updates on the SDC1801 preclinical tox studies and many of these events are going to happen around this summer. So there's potential for the STC-eighteen oh one CGA submission again in the summer and the Phase one clinical trial starts towards the end of this year.

22:45 We look forward to providing updates on the UKRA funded COVID-nineteen studies and what we believe our next steps will be on that. Again, that should be in the middle of this year. And then updates on the progress of SDC18Node two through its preclinical and translational journey. And that's harder to put a time to put the back end of this year. And then for the Check one program then, we look forward to clarity from Sierra on the future development funding and plans for this program. There's potential future milestone payments as I described earlier on clinical trial advancement

23:25 and potential for the triple combination or any of the other combinations to get to either continue or to start in their clinical trials. So we're expecting to report important progress during 2021 as we continue the advancement of our internal programs 1801 and 1802.

23:51 Tim, thank you very much indeed. And also thank you to Stephen and to John for your update today. Could I please ask investors to continue to submit questions using the Q and A tab situated on the right hand corner of your screen? But just while the company take a few moments to review those investor questions submitted today, I'd like to remind you that a recording of this presentation, along with a copy of the slides and the published Q and A, will be accessed via your Investor Meet company dashboard, and we'll send you an e mail to notify you when that's ready for your review. I'd also like to remind you that your feedback is important to the company. Immediately after the presentation has ended, you'll be redirected for the opportunity to provide feedback in order the company can better understand your views and expectations. Tim, investors had the ability to pre submit questions. We received three. So ahead of looking at the live Q and A, perhaps I could start with these.

24:42 The first question reads, is in regards to SAR seven thirty seven. And it says, can you please explain what is meant by the term timely manner in regards to progressing SAR seven thirty seven? Is there a definition of what timely manner set within the contract? Has there been a formal agreement to what constitutes a timely manner? And is there a legal definition of how long a timely manner can last? And really how would you go about challenging whether Sierra are acting in a timely manner? Perhaps I can hand back to you, Tim. Question. So there's no full definition of timely manner. But in the adopt the license agreement and remember that struck between the CRT Pioneer Fund and SAREUM HOLDINGS with us as essentially investment partners.

25:30 But again, in that license agreement, there are standard due diligence clauses, which again have that there's no formal time definition. Unfortunately, it's something for courts to sort out if there's a challenge.

25:43 That's great. Thank you very much. The second question received is great given the great progress and the very good question. A

26:02 think we We continue have to engage with a number of potential partner companies, but we're not really able to say at what stages there are all the numbers involved. Thank you very much indeed. And the final pre submitted question is given the delays created by the pandemic, would it not be sensible to delay the CTA for 1801 and await POC for COVID? Should POC prove positive, then the value of the company would increase making funding easier and reduce the dilutive effect of a potential and potentially faster. Sure. Okay. So there's no significant cost involved in finding a c a CTA.

26:51 So I don't really see any reason to delay the filing while we well, in in case we need to wait for the the COVID data results to come out. Thank you very much indeed, Tim. Well, that takes care of the three pre submitted questions. Obviously, have had the ability, Tim, throughout this meeting to submit questions in the live event. Next half the a going at at Okay. So So if if I pick up some quest the questions and then forward them to John or Steven to answer if that's most appropriate.

27:43 I'm gonna start with a question from Paul B then. It's about detailing a patent submitted in 2020. I think this refers to a patent that was published. It's a UK patent and I'll get John to step in where The UK authorities are slightly unusual in that they publish the headline details of a patent or before the full amount of the patent is published. John, do you want to pick that up on that? Yes, I can do. Yes. So typically, you submit a patent application, there's an eighteen month period in which it's essentially kept confidential. As Tim says, the UK Patent Office is slightly unusual in that they publish the title of the patent application, which is why you sometimes see, you know, extremely, esoteric titles or or obscure titles like invention of pharmaceutical compounds, for example. But what happens in the rest of the world is that you have an eighteen month period of time during which your data that you've submitted is kept confidential, and you're able to submit additional data to support your patent application.

28:59 And so, I mean, we, in common with all other companies, make full use of that eighteen month period of confidentiality and don't, we're not going to publish what, the contents of that patent application are because it would give a potentially commercial benefit to competitors. So I'm afraid for that particular patent, have to be patient and wait the eighteen months and then it will be published and the whole world can read what that's all about. Thank you, John. So question from Darren N, it's about any more information from the observations seen in the human lung cell in the COVID experiment. I think all we said at the moment is that they were all preliminary and very initial results and then we'll make note of the complete result once the program has finished.

29:54 Well, the experiments are due to finish in June this year. It may take us a while to put together or analyze the results to make an announcement. I'll just add one thing, Tim. The questioner has asked about potential for other lung conditions. Alongside the COVID experiments, we're also running the same experiments with H1N1 influenza virus. So we are getting additional data for flu in essence. And yes, we saw similar encouraging results even though early stage and there's still work to do. Okay. A question from Robert M.

30:41 So do the founders have an exit strategy in the time scales? I'm not sure whether that this is for the company or personally. I think we can safely say that John and myself don't have an exit strategy. And I'm not sure we can really comment on sort of future corporate activities of the company. There's another patent question, well, a question on 1801 and commercialization, but actually on actually a number of aspects actually. From Brian Gee, thank you for this. I'll just pick up the various bits of it. So he asks, is the lack of SDC eighteen oh one patent having an effect on potential licenses? So eighteen oh one is fully patented. It's just that the patents haven't been granted yet. So there's no lack of patents.

31:37 And the fact that SDC1802, which is similar model molecule got patented in all of the major worldwide territories suggests we shouldn't have any problem with the granting of eighteen oh two. A follow on question on do we hope the patents be granted in 2021? And I think the answer is, we just don't know. I mean, the patent authorities are a bit of a law on themselves. And there's no way of telling when we expect the patents to grant. And then there's a further question about a competitive company, TLL, took one year to complete the initial clinic service, the initial part of a Phase one clinical start study and would we expect similar timeframe for AT and T one?

32:31 I would say, yes, a SADMAD study, so single ascending dose, multiple ascending dose is a fairly standard piece of work that we would expect to take around a year to complete. Another one from Paul B about more details on the activities completed on the COVID test. I think we've probably answered that with a question from Darren actually in that there are it's really too early to tell and we'll report the full data such as we have it later in the year. So a question from Robin D about any particular reasons to believe there may be some progress soon on 737 and indications from Sierra.

33:35 So they haven't actually announced anything. I mean, it's difficult to say too much at this stage, I suppose. Think we're really waiting for indications from them. But I suppose, well, they wouldn't have bothered to renegotiate the license if they hadn't intended or had any intention of taking the program forward. And I think can take some comfort from that. There's another a similar question from Mark S about is there any pressure we can apply on Sierra? So of course, we're the minor investment partner alongside CLT Pioneer Fund on this. So our hands are slightly tied.

34:30 But obviously, CPF can push forward the due diligence requirements, I suppose, should they so wish. Obviously, we're very keen for the program to go ahead, but there's a limited amount of what we can actually do. So another question from Roger S, in respect of cytokine activation, So I think we partly answered this one actually about evidence that our therapy may mediate other acute lung conditions.

35:20 And as John pointed out that we are also looking at H1N1 influenza. And I think that there's literature evidence out there that this sort of cytokine suppression may be effective. And we could get around to testing that in due course, but at the moment, we're only looking at COVID and H1N1. Is there anything else you want to add, John? No, don't think so. I mean, there are as the questions pointed out, there are other illnesses that could benefit from this. Under the grant that we have, we are limited to looking at COVID-nineteen and influenza. We can make a judgment later on if we want to look at alternatives.

36:10 Certainly cytokine storm is very dangerous associated with T cell CAR T cell therapies and anti cancer therapy, for example. So there are certainly other opportunities, but we're not actively looking at the moment. Thanks, John. Moving on then, there's a question from Mark S. So are there any new and exciting programs running in the background? So our focus is 100% on the two TYK2 JAK1 programs. We do keep an eye out for exciting opportunities going on in other companies or targets that we could address from our Kinage library platform. But at present, we are 100% focused on getting particularly eighteen oh one completed through its preclinical development.

37:11 So a question from James M then. So confidence level on the COVID-nineteen work. So I think, yes, again, it's we have one set of cellular experiments. So it's a little bit early to tell. Hopefully, we'll know more when the further work is completed. Similar question on that topic from Glenn G. Thank you for that. I think I've already answered that. So there's a couple of questions actually on funding expectations from Marcus and I saw one from somewhere else somewhere. I might have lost that now. But I think we've explained in the presentation that it's a balance of income from an early stage deal versus the ability to raise funds and the commercial risk of progressing into the clinic with the expectation of getting a much larger license deal with some clinical data behind us.

38:16 So it's really about that risk return balance of early versus late licensing. And we're not really in a position to say anything on either of those. Question from Roger F then. Yes. So so yeah. It's I think we talked about well, the focus has been on 1801 at the moment and some delay in 1802 due to available funds.

39:05 But the question is, if funding was available, you and John have the capacity to progress it? And I think the answer is yes. There'll be no problem in our internal bandwidth in progressing the program. Question from Robin D on the BMS data for ducravacitinib. So this is BMS' TYK2 specific program. So has it changed our view of the competitive position on TYK2? And I don't think it particularly has. I think that the phase three data backs up the good phase two data that they published some time ago. And yeah, Robin also knows that there seems to be growing competitive activity in the space.

39:58 And I think we'd agree with that, but I know we're fully confident of our molecules ability to compete in the area. Question from Lee S, have the encouraging results been reported to the UKRI? So we have regular meetings with it's called monitoring officer from appointed by UKRI. I'm not sure how much actually gets back to UKRI. John, do you wanna pick that up? Well, yeah. So we have reported the early results to our grant monitoring officer, I would imagine he said that back to his colleagues at UKRI.

40:52 Thank you. Okay. So I think that is I'm just looking through the ones that I think we're able to answer at the moment. There are one or two other outstanding ones which I think are, I suppose, have some amount of commercial or other sensitivity associated with them. So if you forgive us, we will take a while to give you a written answer to those. But yes, once we've had a discussion between us and of course, may be that we are not able to comment, but in which case, we'll acknowledge the question and just say that we're afraid we're not able to comment. Thank you for all those questions. I think if there's no further ones, I'll take No, that's brilliant, Tim. Thank you very much indeed.

41:42 And of course, thank you to all the investors that have shown interest today and submitted all the questions. And we will make them, as you said, available to you, Tim, to review and add responses should that be the appropriate thing to do so. I know investor feedback is important. And with the number of investors on the call, we'd be grateful if you could just give Tim and the team your feedback, your views, your But before I do so, Tim, perhaps I could just hand back to you just for a few closing remarks. That'd be great. Yes. Thank you, Mark. Well, yes, thank you again for listening to the presentation. I hope to demonstrate that we've made good progress during this half year and we have a very exciting six months or so ahead of us. So thank you again. Great. Tim, Stephen and John, thank you very much indeed for updating investors today. Could I please ask investors not to close this session as you'll now be automatically redirected for the opportunity to provide your feedback? If you access this meeting from our website, then the feedback page will simply appear.

42:43 If you access this by the link sent to you by email, you will be asked to log back in just to provide your feedback, but it is incredibly useful to the company. On behalf of the management team of SAREUM HOLDINGS PLC, I'd like to thank you very much for your time today. That now concludes today's session, and good morning to you all.