Mastering MD&A for Success

Lindsey Gross:Thanks, mark. Next we're joined by Matt Sullivan and experienced external CFO, who has helped multiple companies navigate the IPO and MD&A drafting process. Matt, welcome. Can you tell us a bit about yourself and your

Matt Sullivan:Thanks, Lindsey. My name is Matt Sullivan. I'm the CFO at Climb Global Solutions. We are a publicly traded IT distribution company. I started my career in public accounting spending nearly 10 years auditing both privately held and publicly traded companies across various industries before transitioning to the corporate finance side of the world. I spent a few years at a privately held company before joining Climb about six and a half years ago. And when I joined Climb, I first started as the corporate controller, ultimately promoted to the chief accounting officer role, and then most recently, earlier this year, appointed CFO. And since joining climb, I've supported the company's growth from an approximately $500 million gross billing company to nearly $2 billion in gross billings for our most recent fiscal year end. And we've achieved this growth both organically and inorganically as we've completed five acquisitions over the past five years, both domestically and internationally.

Lindsey Gross:That's great. And next we have Melody Carey, an accomplished president and CEO, who will bring insight from the investor relations perspective today. Melody, you introduce yourself.

Melody Carey:Sure. Good day everyone. I have over 30 years of experience in the life sciences industry. I started out as an investment banker, then an in-house investor relations officer for two healthcare companies through their successful acquisitions. And then I founded RX Communications Group 20 years ago. So my firm, clearly an IR firm represents both privately held and publicly traded companies worldwide. And our goal is to implement customized investor relations programs that measurably impact both visibility and valuation for our client companies.

Lindsey Gross:Thank you all. So now let's jump into today's conversation. The four areas we're going to focus on are effectively communicating your company's story, meeting regulatory and SEC expectations, avoiding common pitfalls in the MD&A, and then preparing your MD&A for investor scrutiny to kick things off and get a better understanding of our group that's on the line. Today, we want to put up a quick polling question. Please take a moment to respond, and this is going to help us tailor our conversation.

All right, so let's start with the basics, mark. From the auditor's perspective, what's the purpose of the MD&A and what is the SEC looking for companies to discuss in the section of the public filings?

Mark Pelouze:Yeah, so the purpose of MD&A is to give readers some additional insight into the company’s operations beyond what can be learned by reading the financial statements. There are 5 general areas that the SEC is looking to have discussed in MD&A. The first is Key Performance Indicators and Metrics, which would disclose key performance indicators and metrics used by management to assess the company's performance. The 2nd is a Discussion of Results of Operations: This would include a detailed analysis of each material factor affecting the company's results, including unusual or infrequent events and economic developments. The 3rd area would be Known Trends and Uncertainties: Companies should discuss things that are reasonably expected to impact future results, such as impacts of supply chain disruptions or inflation. The 4th area of discussion would be Critical Accounting Estimates: These disclosures should include the judgments made in applying significant accounting policies and the sensitivity of reported results to changes in those assumptions. The 5th and final area would be Liquidity and Capital Resources, which should include a clear discussion of cash flow drivers and trends related to meeting future cash requirements.

Lindsey Gross:Also Mark, from your recent experience, are there any recent regulatory trends or hot topics the SEC is looking to be discussed in the company's MD&A?

Mark Pelouze:Yeah, there are several recent regulatory trends and hot topics that the SEC is focusing on for inclusion in a company's Management's Discussion and Analysis (MD&A). These would include Non-GAAP Financial Measures: The SEC continues to scrutinize the use of non-GAAP financial measures to ensure they are not misleading and are presented with equal or greater prominence than the most directly comparable GAAP measures. Segment Reporting: Companies are expected to provide clear and detailed segment reporting, including how they identify operating segments and allocate resources. Goodwill and Intangible Assets: There is a focus on the impairment testing of goodwill and intangible assets, ensuring that companies provide sufficient disclosures about their assumptions and methodologies. Climate Change and ESG Disclosures: The SEC is increasingly prioritizing disclosures related to climate change and environmental, social, and governance (ESG) factors. Companies are encouraged to discuss how these factors impact their business and financial performance. And lastly, Cybersecurity: Companies are expected to provide detailed disclosures about their cybersecurity risks and incidents, including how they manage and mitigate these risks

Lindsey Gross:So Matt, as someone who has led companies through the process, what does your preparation timeline look like and team to prepare a well structured MD&A?

Matt Sullivan:So for our team, we assign one person to own the document and own all edits and updates, and all edits and updates will flow through this one team member. We begin the process of rolling forward our MD&A and our 10 Qs and 10 Ks prior to the quarter end. We try to update any structural or business updates that we can take care of, obviously prior to the numbers are being finalized, and then update the document at that time.

Lindsey Gross:Just a follow up to that, who internally plays a role in the MD&A process and what point in time do you get those people involved?

Matt Sullivan:Yeah, we get team members involved as soon as possible. Like I mentioned, we have the one team member who leads the information gathering process internally and also with a one team member updating of the document. But with that said, there's various different groups and organizations depending on what type or teams throughout the organization, depending on what type of information we're updating. So they will reach out to those various different departments within the company to gather the necessary information. And then once the document is updated, it goes through various levels of review internally, including myself, our management team, and then ultimately we have our finance team do a thorough tick and tie of the amounts and information before we share that externally. And then once we've completed information, once we've completed that process, we'll share the document externally to our legal team to review to ensure from a SEC compliance item that we're hitting everything, and then also we'll provide it to the auditors at that time.

Lindsey Gross:Melody, with the multiple groups involved, when this process, who is best positioned to coordinate across the different teams from your perspective?

Melody Carey:So from our point of view, the key groups that we work with as investor relations professionals are the management finance team, the auditors and the legal team. And generally, we find that the CFO and the COO or the COO coordinate these groups, the IR role in all of this is focused on shaping the messaging to ensure that it's clear aligned with current public communications and reflective of how the company wants to position its performance and outlook to the investment community. So while IR may not lead the process, the management teams rely on us to craft compelling consistent narrative that resonates with the analysts, investors, and bankers.

Lindsey Gross:So just following up on that, have there been any lessons learned over the years in preparing a wealth well-structured MD&A when you pull all these people together across departments?

Melody Carey:Absolutely. So over time, we've had several key lessons emerge from my real world experience and assembling the MD&A internally. So first, most importantly, designate a single owner for the master draft. This is essential to avoid confusion over competing versions and edits of the documents. And depending on the number of contributors, this process can be extremely challenging almost in art form. And I can vouch for this because I've served in this role myself, and it's one of the most intense jobs in the process. And next I would say make sure to leverage external feedback. So incorporate insights and recurring themes from recent conversations with investors, sell side analysts, and possibly investment bankers so that you can proactively address concerns or perceive risk before they surface publicly. And then of course, as always, most importantly, ensure consistency with all public disclosures. So the MD&A should align with previously disseminated materials, including investor presentations and press releases if there are changes, and make sure you explain them clearly and succinctly. So just as an example of a corporate presentation stated that clinical trials were underway and US, Canada, and Australia, but now you have an MD&A that now lists just US and Canada. You can't assume readers will overlook the discrepancy. So a brief explanation can prevent speculation and potential misinformation. Unfortunately, I've seen situations where inconsistencies like this were picked up by research reports by analysts or the media before the company actually had a chance to provide context.

Lindsey Gross:That's great. Now, mark, jumping into what makes a strong MD&A, what are some of the most common issues or comments you see come up during the audit or the SEC review process?

Mark Pelouze:Yeah, I think there's several areas. I'll just try to touch on. A few of the key ones often requests registrants to explain the results of their operations with greater specificity, including underlying drivers for each material factor that affected their earnings or is likely to have a material effect on future earnings. They're not looking for companies to say that revenues increased period to period. You can get that just from reading the financial statements. They want companies to really describe why revenues increased. Was it a significant customer? Did the customer increase prices? Did they gain market share? Was there a new product? Things along those lines. So the SEC definitely is looking for companies to provide some specifics as to what drove the changes in results. They're also looking for certain forward looking information. If there's no trends or uncertainties, anything that's reasonably likely to have a material impact on revenues or income from continuing operations should be disclosed. Thirdly, the SEC staff has asked registrants to expand their discussion about significant components of their financial condition and results of operations. So again, it's kind of going back to segments and maybe breaking down the consolidated results to a more granular level by segment and getting into what's driving the results of operations of different segments.

Another example would be for things like, like I said, I do a lot in the life sciences space, the SEC staff is looking for a breakdown of some expenses and for instance, r and d costs. So r and d costs is a total number on the face of the income statement. Most if not all of my biotech companies provide additional quantitative and qualitative disclosures that give more transparency about the types of expenses incurred. Often those expenses will be broken down by clinical trial, how much is being spent on each one and the different areas within r and d. So a reader can see more than just what the total r and d spend was, but to see in what areas that r and d expense was being incurred.

Again, variability of cash flows and the discussion and material components of these cash flows. Again, the SEC staff isn't looking for kind of a regurgitation of the cash flow statement. They are more looking for reasons as to why cash flows have changed beyond just saying that AR went up or payables increased, things along those lines that, again, you could get that right off the face of the cashflow statement. They're looking more for the reasons behind that and not just the reciting kind of what you can see on the face of the cashflow. And I guess probably the last one, I may have kind of touched on this before, but just the impact of current or emerging trends in the macroeconomic environment. Again, it's a little forward looking, but to the extent the company is aware of things that are impacting the results and maybe are expected to continue to impact the results, the SEC would be looking for the company to discuss items like that. So I think those are some of the key areas that the SEC staff has been focusing on.

Lindsey Gross:From your perspective too, Mark, as the auditor, what parts of the MD&A raise red flags or more scrutiny?

Mark Pelouze:I think that simply discussing information that a reader could gather on their own by reading the financial statements is a red flag and more likely to draw scrutiny from the SEC. The SEC is looking for a deeper discussion of the company’s results in the MD&A section, including why the results were what they were and what trends or market conditions may impact future results - Things that aren’t readily apparent from simply reading the financial statements. You can obviously see whether they went up or down based off the financial statements themselves. But what the SEC is really looking for here is a deeper discussion of the company's results. So when you see an MD&A that really doesn't provide anything beyond what the financial statements are already telling you, I'd say that's a red flag to kind of push back a little bit and encourage the company to add some more color to their numbers.

Lindsey Gross:So kind of along the same lines, what's your advice for companies trying to avoid delays during the filing process tied to MD&AA revisions and comments?

Mark Pelouze:Sure. I think there's a few things that can help there. I think early preparation is always helpful. The sooner you start preparing the MD&A, the better. So it gives adequate time to get comments from everybody to draft everything and keep it meaningful and be able to have several iterations before you have a final document. I think you want to be clear and concise. You don't need to talk about, it doesn't have to be overly wordy. You want it to be short and to the point, make it easily readable for the readers. You also want to focus on material items. Anything that's not material, it doesn't really need to have any time spent on it.

And then I think one thing kind of goes along with early preparation is just consistent review to the extent there's anything that happens during the quarter, during a year, just not to just say, have to rewrite the MD&A at that time, but maybe have something where you can go back to, say, this happened during the quarter of the year. So you're always constantly thinking about how this would impact your MD&A. And then I think lastly is to be sure that obviously engage your financial advisors and your legal counsel, so they also have adequate time to provide their comments on this section of the engagement. And I guess one last thing is if you do get SEC comments, you want to respond thoroughly and promptly to those, so that's not a holdup as to getting their comments cleared. Sometimes you might have to go back and forth more than once with the SEC to get comments cleared, but if possible, you want to avoid that. So the sooner you can respond to SEC comments, probably the sooner you can get them cleared and not have that be a holdup for your filing.

Lindsey Gross:All great points. So Matt, from the CEO or a company's perspective, how do you decide what you're going to include in the MD a from a strategic standpoint?

Matt Sullivan:Yeah, so the MD A is really a narrative explanation of the financial statements and other statistical data that we believe will enhance the reader's understanding of the business and not just regurgitating what's on the face of the financial statements. So we're trying to convey within the MD&A, the strategy and plans that we as a management team, as a company, as a board, are trying to execute upon.

Lindsey Gross:So just to follow up, when communicating the financial trends and growth strategy, what are some ways to make the narrative both compliant and compelling to the readers?

Matt Sullivan:Yeah, mark just touched on it a bit, being clear and concise is key. Within the MD&A, we're, again, we're trying to enhance the reader's understanding of how we view our trends and growth plans. So from a trends perspective, highlighting the metrics that we as a management team and company are monitoring is key. And then as necessary, providing the reconciliations for those amounts to the most closely reported gap numbers or whatever they might be is also required. And then from a growth strategy standpoint, highlighting how we expect growth and how we're looking at it, whether it be from a specific business unit, a certain geography, whether future m and a activity is on the horizon, some of those are important things to highlight for the reader of the financial statements.

Lindsey Gross:So Melody, from investor relations factor for the MD&A preparation, what are institutional investors and analysts really looking for in the MD&A?

Melody Carey:So generally speaking, the auditors and finance team take the lead on drafting the MD a section of financial documents like the 10-Ks, S-1s, S-3s, etc. Our role in investor relations, investor relations is to provide comments from the street's point of view on how investors and analysts are likely to interpret the content. We point out areas that may need more explanation, possibly rewording or pointing out something that may raise red flags. So our expertise comes into play from speaking with these constituents on a daily basis and understanding their investments thesis for the industry and also their concerns. So every company is different. However, in my experience, the ir, we take the lead in writing the business section of the documents because that allows us to tell a more compelling story or compelling financial story. So in this section, we're allowed to write more freely and use graphics to highlight the investment thesis.

So as Mark and Matt had discussed earlier, important considerations for the investment thesis could include clarity on business drivers, what's actually driving results? Is it volume versus pricing, market share gains, cost controls, et cetera. Also, investors and analysts want to know what management's growth plans are the forward looking strategy. So what are the margin goal? What do the margin goals look like and what the company's risk mitigation strategies are. Investors are also looking for realistic discussion of the risk and uncertainties, and the keyword is realistic. They're looking for a thoughtful analysis of known issues and contingency plans. So for example, how vulnerable is the company to rising interest rates, tariffs, regulatory changes, customer concentration? Also clear information regarding liquidity and capital allocation plans helps investors assess the company's ability to fund growth, manage debt, and return capital if relevant. And finally, investors are looking for a segment and operational transparency, which was discussed before. They want granular visibility into which parts of the business are thriving and which parts are being challenged. Examples include, how did international sales perform versus us are there, or which product lines driving margin compression? And so from an IR point of view, the MD&A and business overview should not just be compliant with regulatory requirements. They also should be compelling, coherent, and build investor and customer confidence.

Lindsey Gross:So in telling the story, how do you align the MD and a disclosures with the street's expectations or earnings calls?

Melody Carey:Again, as noted earlier, while the finance and accounting teams typically lead the technical and SEC drafting, the IR officer ensures that the MD&A is aligned with the street's expectations and is strategically positioned for the capital markets audience. So with that in mind, again, investor focused messaging. So we evaluate whether the content in the MD&A supports the company's investment thesis, and if it raises any red flags that we need to address from an IR perspective. The narrative should address key themes including cash, burn, margin trends, supply chain risk and strategic process. As some examples. Again, we use feedback garnered from investors and analyst meetings to that we address reoccurring concerns, proactively address reoccurring concerns and highlight areas of strategic interests. So we want to make sure that disclosure resonates with what the market is actually focused on. We've all talked multiple times on the call about consistency across all public communications.

Again, it's imperative that the MD&A align with what the company has communicated already in press releases, meetings, earnings calls, investor presentations, guidance forecasts. So any inconsistencies, whether intentional or not, may raise red flags or suggest that management is trying to hide something leading to unnecessary speculation. And this could directly affect the company's valuation. And the final thing I just wanted to point out is that the IR officer's review helps bridge the gap between technical, financial, and operational disclosures and investors understanding by translating data heavy or complex material, especially in the life sciences arena, into clear, concise commentary.

Lindsey Gross:Matt, from your perspective as the CFO, should companies disclose performance expectations in their MD&A section?

Matt Sullivan:That's a great question. It's something we discuss pretty regularly internally, both from a management team and also at our board level. I'd say from my perspective, every company and situation should be viewed differently. It's not a one size fits all from, in my current position, we have a historical track record and performance expectations are not historically something we've disclosed as we more so allow our actual results to explain the performance and be a basis for investors can determine how they expect we'll perform in the future.

Lindsey Gross:So Matt and Melody, from each of your individual perspectives, how do you go about ensuring the story that you're telling and the numbers are aligned? And if they're not aligned, how do you go about bridging that gap

Melody Carey:Aligned? It's essential. And any disconnect between the narrative and financials will erode. Trust credibility matters more than spin. So for private companies, the MD&A may represent the first version of a formal disclosure created by a professional team of resources, such auditors, attorneys, and investment bankers. So in this case, the disclosures in the MD&A set the tone for future communication and forward looking expectations containing press releases, for example, and may impact the content on the company's website as well. For public companies, the MD&A must correspond to previously disclosed public information. However, if the company needs to update or change the previously disclosed information, this would be the perfect time to expand on the reasoning. And this most likely be expanded in the business overview section. But in all cases, messaging should be direct and clear.

Matt Sullivan:Yeah, I agree with melody that all public disclosures must be aligned and we try to achieve that. Kind to my point earlier, and to melody's point earlier too, having the same team members prepare and review all the documents as well as having somebody from the team tick and tie of the numbers to both the source schedules and throughout itself within the document, that really helps ensure consistency across the board.

Lindsey Gross:This is all really great insight. So now we're going to move on to hot topics discussed in MD&A. So Matt, how do you disclose liquidity position or the burn rate while being transparent but not alarming?

Matt Sullivan:Yeah. A key objective of the liquidity and capital resources discussion is to provide a clear picture of the company's ability to generate cash and to meet existing, known, or reasonably likely future cash requirements. And liquidity is the ability of the company to generate adequate amounts of cash to meet its cash needs, and any known trends or any known demands, commitments, events, or uncertainties that will result in or are likely to result in the company's liquidity increasing or decreasing the material way should be discussed. And to reiterate the point we've been touching on a bit already here, being clear and concise is key and providing an accurate description is necessary. So things that we will discuss, it includes material, cash requirements, sources and uses of cash, including cash provided by used in operations, as well as cash provided by or used in investing in financing activities and material trends and uncertainties relating to a company's flexibility in determining when and how to use the available cash flows to satisfy obligations and make other capital expenditures. And if applicable, discussion around debt instruments will likely be necessary as well. And to reiterate what Mark was saying earlier, one of the most common shortfalls in discussions on liquidity and capital resources is when companies just simply repeat items reported on the statement of cash flows. And really what should be presented and focused on in the MD&A is describing getting a little deeper into the details there and describing the primary drivers and other material factors necessary to understand the cash flows, the value of historical cash flows,

Lindsey Gross:Melody, liquidity and capital resources or critical disclosure areas. What are some of the best practices around runway conversations in the document?

Melody Carey:Well, for life science companies, this is a crucial area. Key components typically discussed include clearly cash on hand and the future runway. So in particular, a company should address how many months or years of cash remain and what key milestones management expects to achieve with the current cash on hand. And it's very important to list realistic achievable milestones to increase or at least maintain your company's valuation for potential future financings. Regarding the burn rate, investors and analysts are looking for information whether management expects the burn rate to increase or decrease over the time or to remain consistent. And this section should address how upcoming milestones are expected to affect that burn rate and what strategies management has in considering what management is considering for reducing their burn rate if necessary. The discussion should also include an explanation about how the company plans to fund operations and future gross growth initiatives.

These answers include a detail of historical and potential resources of capital, including equity raises, debt financing, and potential non-dilutive sources such as grants, collaborations, licensing, revenues, et cetera. A breakdown of how capital has and will be deployed, including clinical development, regulatory submissions, manufacturing, scale up, capital expenditures, business development, debt repayments. And it's also critical to explain whether and when the company will need to raise additional funds. So identifying the strategic reason for raising capital, is it pipeline expansion, commercial readiness, and explain the likely form of financing and any contingency plans if market conditions are unfavorable.

Lindsey Gross:Some other key areas that need to be discussed in MD&A typically are litigation commitments, contingencies and acquisitions. Mark, how do you approach from the auditor's perspective, what should be disclosed related to lawsuits or uncertain legal outcomes?

Mark Pelouze:Oh yeah, I think there's a few areas there and considerations to ensure that companies are being transparent and they're complying with regulatory standards. These would include the materiality of the litigation, whether the legal matters material to the financial statements, if it's not, probably don't need much or very limited disclosures. So yeah, so estimation of loss. If the outcome's probable and the loss can be reasonably estimated, the company should record an accrual for the estimated loss. If the loss can't be estimated, there's still some disclosure required. The disclosures would involve the nature of the contingency, the potential financial impact that any uncertainties surrounding the income. And obviously here you also want to have your counsel that's handling the matter involved in helping to make sure that the disclosures are complete and adequate.

Lindsey Gross:So Matt, from a company's perspective, how much should be shared about m and a activity or large transactions pending with the company?

Matt Sullivan:Any unusual or infrequent event or transaction or any significant economic change that materially affected the amount of reported income from continuing operations is required to be disclosed? Generally speaking, m and a activity and large transactions meet this threshold specifically for m and a activity. We've done five over the past five years. So in the MD&A section will remind the reader of the financials the date that the acquisition closed, which would've already been previously disclosed in an eight K filing when we announced the acquisition. But again, just reminding the reader of the financial statements the date that closed, so then they know from as of when and on what date that acquired activities included in our results as well as we'll remind, or we'll highlight to the reader the financials, if it's what specific reporting unit those results are included in amongst other things.

Lindsey Gross:Great. So we're getting towards the end. I want to get everyone's final thoughts and we'll go through everyone on the call here. What's the one key takeaway or common mistakes companies are making in their MD&A? And we can start with Mark.

Mark Pelouze:Yeah, I think that a key takeaway is that the MD&A is a section of public filings that continues to receive SEC scrutiny. Based on statistics from Audit Analytics, of registrants that received comment letters from July 1, 2023 to June 30, 2024, MD&A received comments in 34% of comment letters, which ranked it as the #1 area that received SEC comments. So be aware that this is a section that receives a lot of the SEC’s attention and try to avoid some of the pitfalls that we discussed previously. Lindsey Gross:

Melody, what's your final takeaway here?

Melody Carey:I would have to say being afraid to address investor concerns and MD&A in the business section. I think things need to be addressed head on, and you're going to get our clients get much more credit for addressing potential problems directly. So don't be afraid to do that.

Matt Sullivan:Yeah. And then I would just reiterate kind of what I said, and Melody said, and Mark have said throughout being clear and concise is key. The MD&A should be providing an explanation of the financial statements and other statistical data that the company believes will enhance the reader's understanding of the business. And that's really what you want to make sure you're executing upon within the MD&A.

Lindsey Gross:All great thoughts, guys. So now we're going to move on to the q and a part of the session today. If you haven't already, please use the chat box and answer and ask any questions, and we're going to go through as many as we can as long as we have time to start things off. There has been one question that's come through asking what is the relationship, if any, between recent segment disclosure requirements and the MD&A?

Mark Pelouze:I think I'll talk about this from an audit perspective. I think there are now some requirements in the foot of the financial statements regarding segments. So I think the SEC was always looking for some discussion of segment activity. The segment disclosures in the footnotes is kind of just pushing some of that disclosure back into the audited financial statements. So I don't know that anything changed as far as MD and A is concerned. It's more of a change from the financial statement perspective to have some additional segment disclosures that weren't.

Matt Sullivan:Yeah, and the MD&A commentary, really, it's supposed to be that additional layer or level of detail for the reader of the financial. So having that segment and reporting unit information in the MD&A should have always really been there. But it also goes back to making sure things tick and tie throughout the document as well. If you're disclosing within the footnotes some information as far as segment numbers and just the commentary goes, you also want to make sure that flows into the MD&A.

Lindsey Gross:Great. Just one other question I think just talked about early on from the planning perspective, from your experience, the timeline, how much time does it take when you're going into starting one of these? When you go to draft the MD&A for, if you company's looking to IPO, it's their first time through, how long should they budget time for to do this?

Matt Sullivan:I haven't not gone from the initial IPO process. I would say from a lot of ours is rolling forward the q and K to get the structure from the prior periods. So thinking through a 10 Q timeline if it's a three to four week turnaround time on the external side. So internal, you really want to get that head start before year end and then making sure that everything's ticked and tied and reads properly before sending it out externally to legal and auditors.

Lindsey Gross:Great. Looking to see. I don't see any other questions. If there's any other questions, please submit them in the chat box. I'll give it a minute.

All right. There was one question. If there's any slides, there will be a transcript that will be shared, can be shared later on. So with that said, I just want to thank everyone today, especially our panelists for attending. Whether you're beginning your IPO journey or you're managing the ongoing reporting as a public company, a strong MD&A is the most impactful tool at your disposal. If you have any questions about how your company can improve their MD&A or broader IPO readiness strategy, please don't hesitate to reach out. We'd be happy to connect with that. I hope everyone has a great day and I'm going to hand it back over to Bella.

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