Jim Sidoti: Got it. Alright. Thank you.
Operator: The next question is from Paul Nouri with Noble Equity. Please go ahead.
Paul Nouri: Hey, good morning. O thought that the inventory came down a bit in the quarter, but still seems elevated. Can you talk about if you’re expecting that to continue to come down and hopefully there’s nothing in there that will warrant future write-offs?
John Gillard: Hi, Paul, take that. So, yes, we do intend to continue to, kind of whittle down that . And we hired a very senior supply chain professional in 2022 and he’s doing a lot of work in terms of optimizing our overall supply chain, okay? It’s a balancing act for us, okay? So, for example, on one side, we want to reduce that inventory, but at the same time, given everything we’ve seen over the last 2 years to 3 years, in terms of supply chain challenges, we need to make sure that we’ve got enough protective product on hand, particularly around raw materials. In terms of other areas for write-offs, to you give you some sense, in total, we’re carrying forward related inventory now probably about $1 million okay, in terms of carrying value.
We sold about $0.5 million of COVID-related products in quarter four. I expect we’ll do something similar in quarter one this year, right. So, in that sense, we’re not holding big, big inventory values from a net basis in terms of products that are highly uncertain. And then our other inventory is concentrated in our ongoing main product areas. So, for example, associated with HIV, we obviously have the ramp up now production at TrinScreen and that’s going to add some headcount production as well here in Ireland, but we’ll need to increase our inventories. So, I think overall the picture might stay the same, but I think, we’ll effectively be trying to hold lower amount of inventories for every dollar revenue that we have going out the door.
That makes sense for.
Paul Nouri: Yes. And then in terms of the income statement, two questions. I think you mentioned hitting 40% gross margin adjusted this quarter, wondering if you expect to continue that in 2023 and then operating expenses as a whole, do you think that as you get revenue from TrinScreen and hopefully the diabetes business continues to perform well in the lab in the U.S.? Do you think you’ll be able to leverage off those expenses or are you building more of an infrastructure to support the growth?
Aris Kekedjian: I think on the expense side, let me just say one thing. We’re making investments. We’re putting a lot of money in the IT right now because we think that’s going to drive significant efficiency. I think the portfolio rationalization will address a significant amount of carrying costs associated with managing legacy products. And we can address that. And then revenue quite frankly is the key here. There’s a baseline amount of infrastructure you need for regulated entity. And getting a ramp up for example in TrinScreen will drive significant operating efficiency in and of itself. So look, revenue is one piece of it, but there’s no doubt we’re putting significant investment in the IT infrastructure in the companies so that we can make it much more efficient and it’s easier to scale as we do M&A. Go ahead, John.
