Precipio Q3 2026 Earnings Call - Products Division Hits $1M Quarterly Revenue, Sets $40M Run-Rate Target for 2027

Conference Operator: Welcome to Precipio Q3 2026 shareholder update conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. Please note that the conference is being recorded. Statements made during this call contain forward-looking statements about our business. You should not place undue reliance on forward-looking statements as these statements are based upon our current expectations, forecasts, and assumptions, and are subject to significant risks and uncertainties. These statements may be identified by words such as may, will, should, could, expect, intend, plan, anticipate, believe, estimate, predict, potential, forecast, continue, or the negative of these terms or other words or terms of similar meaning.

Risks and uncertainties that could cause our actual results to differ materially from those set forth in any forward-looking statements include, but are not limited to, the matters listed under risk factors in our annual report on Form 10-K for the year ended December 31, 2025, which is on file with the Securities and Exchange Commission, as well as other risks detailed in our subsequent filings with the Securities and Exchange Commission. These reports are available at www.sec.gov. Statements and information, including forward-looking statements, speak only to the date they are provided, unless an earlier date is indicated, and we do not undertake any obligation to publicly update any statements or information, including forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Now let me hand the call over to Ilan Danieli, Precipio’s CEO. Please go ahead.

Ilan Danieli, CEO, Precipio Diagnostics: Good afternoon, everyone, and thank you for joining us. Before we jump into a review of the results for Q3 2026 and share several thoughts for 2027, I thought that as we come to the end of another successful year, it might be helpful to add another member of the management team to these calls. I would like to introduce my co-founder and Precipio’s Chief Operating Officer, Zaki Sabet. Along with Dr. Ayman Mohamed, the three of us started Precipio in 2011, and we have been inseparable since. Prior to founding Precipio, Zaki spent his career in the diagnostics industry. While at college, Zaki worked as an accessioner during the night shift in a lab in New Jersey, and over the years, he moved up through the ranks of lab tech, then supervisor, to eventually manage the entire laboratory.

Bringing his in-depth expertise, Zaki was responsible for building what is today, to the best of our knowledge, at our size, one of the few profitable hematopathology laboratories in the country. At Precipio, Zaki oversees all company operations, including both our clinical laboratory, as well as operations for the Products Division, including manufacturing and supply chain. Today, Zaki will be joining me in sharing some remarks, and he will also be available to answer questions during the Q&A section. As this is our last scheduled shareholder call of 2026, I would like to put these results in the context of the progress we have made over the past couple of years and explain how that progress sets the stage for 2027. In 2025, our focus was on getting the company to a cash flow positive position.

We’d gone through several dilutive financings and decided that it was time for the company to stand on its own two feet and become financially independent. We set our eyes on reaching cash flow positive through a combination of revenue growth alongside significant operational efficiency improvements. At the end of 2025, we were there. Our company was cash flow positive, no longer dependent on outside capital in order to survive, and for the first time, we were able to respond to the calls from the various investment banks and hedge funds looking to provide capital to Precipio with a polite but clear, "No, thank you." I can tell you, as the person responsible for raising money to keep the lights on for 15 years, that was a wonderful moment.

The second goal in 2025 was to determine if the products we created and that were used in our own lab would be real value to other laboratories. We carefully explored this market by identifying target customers in several segments, which would serve as an indicator of market interest. This meant reaching a better understanding of which products in which configuration suited each segment. It meant continuously refining our sales presentation and value proposition to give the customer what they wanted, and also to determine which level of support was required by each customer.

While many investors have observed that our revenue in 2025 remained relatively flat, our learning experience was a critical step at that time and serves as an important foundation for us to determine the course for our sales team to efficiently target the market, for our R&D team to build the right product, and for our support team to be well-equipped to onboard our customers. At the end of 2025, we had accomplished two key tasks. First, financial independence, and second, a market understanding of our customers and our value proposition. In 2026, with a better understanding of our customer base, our products mix, and how we can best serve our customer, we set out to validate our go-to-market strategy, reaching customers via distribution.

One of the things we learned in 2025 and before was that in the laboratory space, getting in front of the customer and meeting the right decision-makers is really difficult. Post-COVID, if you didn’t have a personal relationship, it was near impossible. We also learned that once we were in front of the decision-maker, we were quite successful in making the sale. How do we get that door open for us? The distributors hold an important role in this field. Working with the top four distributors in the industry, Thermo Fisher, Medline, McKesson, and Cardinal Health, we have learned the power of the 200-plus sales reps each of these distributors employ. These are armies of well-trained, experienced, and well-connected reps that have a long-established relationship with their customer, often spanning 10 to 15 years.

There is no amount of money that would enable us to replicate even a fraction of that sales force power, so we decided that distribution was the way to go. We also learned that each distributor is different, with different organizational structures, division of responsibilities between different reps, and organizational culture differences that dictate how best to interact with each distributor. in 2026, we set out to figure the recipe for success with each distributor. During this process, we also learned what were the internal skill sets we needed to develop within our commercial team to best apply each recipe with each distributor. As we stand now at the end of 2026, we feel we figured out most of what we set out to discover in terms of the recipe with each distributor.

That has led to some new hires in our commercial team and to a clear internal articulation of our go-to-market strategy via distribution. You’ve seen the gradual growth of the Products Division over the first three quarters of this year. While it’s always nice to see the business grow, this is by no means satisfactory to us, nor it is a reflection of our planned growth trajectory going forward. Quite the contrary. 2027 will mark an important next phase in Precipio’s evolution as we shift our focus from developing and validating our commercial strategy to accelerated growth. With the right products, a clear understanding of our target customers, an established distribution strategy, and the commercial infrastructure we’re putting in place, we believe we now have the foundation to pursue a significantly higher rate of growth in our product business.

For the first time, we’d like to share with shareholders some specific financial objectives against which we intend to measure our progress. For our Products Division, we are targeting an annual revenue run rate exceeding $10 million by the end of 2027, compared with approximately $4 million annualized run rate based on our third quarter results of 2026. Our Pathology Services business will also remain an important part of our growth strategy. Beyond its role in supporting product development and clinical validation, it also continues to generate the majority of our operating cash flow. We intend to continue growing this business, targeting an annualized revenue run rate of approximately $30 million by the end of 2027. Together, these objectives represent a combined annualized revenue run rate exceeding $40 million by the end of 2027.

To be clear, these are targets for the annualized revenue run rate we aim to achieve as we exit 2027, rather than a forecast of total revenue recognized during the year. We believe achieving these objectives would represent a significant milestone for Precipio, demonstrating the scalability of our product business while strengthening the financial foundation that enables us to fund continuing growth, product innovation, and expansion into new diagnostic markets. We recognize that these are ambitious objectives, and delivering against them will require disciplined execution, but we believe the progress made over the past two years positions us well for this next phase of growth. Now, let’s turn to a review of Q3. Total revenue increased from approximately $7 million in Q2 to $7.2 million in Q3. Pathology revenue was approximately $6.3 million, and product revenue exceeded, for the first time, $1 million a quarter, an exciting milestone.

Adjusted EBITDA was approximately $400,000, consistent with Q2. Our operating cash flow was approximately $600,000, compared with approximately $700,000 in the second quarter. Total cash increased by approximately half a million during Q3, bringing our quarter-end cash balance above $3.5 million, compared with approximately $2.2 million a year earlier. These results give us a stronger financial foundation. With the confidence of a consistently cash-flowing business, it is now time to shift the balance. While maintaining positive cash flow, we plan to shift our focus to significant accelerated revenue growth. Let us discuss how we plan to scale up for growth on the product side. 2026 was all about understanding the recipe for growth. As we discussed, we view distribution as the key source of scalability for our Products Division, and we wanted to understand how to best make that channel work before committing resources to broader commercial expansion.

We deliberately approached this with a relatively small commercial team and a measured level of spending. We wanted to refine the distributor model and our overall sales strategy before building a larger sales and marketing effort around them. The sequence was intentional, establish the approach, learn from execution, and then invest in scaling it. We now believe we have a much clearer understanding of that recipe and how to support it. Our ability to connect effectively with the distributor reps, arm them with information to get us a meeting, and proceed to build a pipeline, all give us confidence we are ready for the next stage. It is now time to shift our emphasis from developing the model and understanding the recipe to implementing and expanding its reach. In 2027, growth will be our central commercial priority.

We intend to significantly expand the commercial team and set aggressive goals for them while increasing marketing and technical support behind our products. It is time to pour gas on the fire, utilizing the incoming cash flow as resources towards accelerating the distributor and sales approach we spent this year developing. An important part of that plan is bringing in a senior marketing executive to lead initiatives that were not previously pursued at this level. We want a more active presence in the market and a more systemic way to build awareness, credibility, and access to prospective customers. That includes a stronger presence at relevant conferences where we can engage laboratories, clinicians, and our distribution partners. It also includes building a network of key opinion leaders who can provide clinical insight and help inform the evidence needed to support adoption.

We plan to build clinical credibility through additional publications and case studies that explain the application and value of our technologies. Our products need to be supported with evidence useful to the physicians and laboratories making testing decisions. Marketing will also work closely with sales on prospecting and customer access. The goal is to identify the right accounts, reach the people involved in testing decisions, and give our sales team stronger materials and more opportunities to substantive customer discussions. That should extend to our distributors as well as to our direct commercial efforts. These initiatives are intended to work together. Conferences create opportunities for engagement, clinical relationships and evidence strengthen our credibility, and coordinated marketing and sales follow-up help move that interest towards evaluation and adoption.

Since quarter end, we have made changes to the commercial leadership and are bringing our Products and Pathology Services sales efforts under a more coordinated structure. Our recent product training week brought commercial, clinical, and operational teams together to deepen product knowledge and strengthen customer conversations. These steps all support the broader growth effort we are preparing for next year. We will measure progress through customers completing implementation, beginning clinical use, and placing repeat orders, ultimately resulting in revenue growth. Aggressive goals need to translate into results, and we intend to maintain that discipline and focus as we expand our commercial activity. As we move from developing our commercial strategy to executing against a much more ambitious growth plan, operational leadership and accountability across the entire organization will become increasingly important.

Zaki has been instrumental in building the infrastructure that brought us to this point, so I’ve asked him to join this call and share his perspective on how we plan to scale the business from here. Zaki, all yours.

Zaki Sabet, Chief Operating Officer, Precipio Diagnostics: Thank you, Ilan, and good afternoon, everyone. As Ilan has outlined, we’ve spent the last several years building the foundation for Precipio’s next stage of growth. My focus has been on developing an organization that not only can deliver high-quality diagnostic services and products, but to do so efficiently, profitably, and at a significantly greater scale than where we operate today. I believe one of Precipio’s greatest strengths is the operational infrastructure we’ve already built and the opportunity we now have to leverage that infrastructure as the business grows. Within our Pathology Services division, we’ve demonstrated our ability to grow revenue while improving efficiency and profitability. We’ve invested in our people, systems, processes, and laboratory capabilities, creating an operating model that we believe can support substantial additional volume without requiring a corresponding increase in our cost base. On the product side, we’ve applied that same philosophy.

We’ve built manufacturing capabilities, quality systems, and technical support infrastructure designed not just for our current level of sales, but for the much larger business we intend to build. And importantly, these two divisions are deeply connected. Our clinical laboratory is not simply a source of revenue and cash flow. It is also where we develop, validate, and continuously improve our technologies, giving us a unique understanding of how our products perform in real-world clinical environments and what our customers need to implement them successfully. To put the scale of the opportunity into perspective, we estimate that our existing operational infrastructure has the capacity to support approximately $100 million in annual revenue, roughly equally divided between Pathology Services and product manufacturing, without requiring significant additional capital investment in our core facilities and equipment.

That is a substantial amount of capacity relative to where our business stands today, and it creates an important opportunity for us to scale revenue, improve margins, and drive greater profitability as we grow. Back to you, Zaki.

Ilan Danieli, CEO, Precipio Diagnostics: Thank you, Zaki. In summary, the progression is clear. In 2025, we focused on reaching positive cash flow and financial independence. In 2026, as we generated cash, we studied and refined the commercial approach we believe can scale our Products Division. In 2027, we intend to put significant resources directly towards implementing that commercial approach and focus entirely on growth. We enter the next year with a strong financial foundation and a clear commercial direction. Our task is now to turn that preparation into faster growth. I’d like to thank our dedicated team of employees for their work and to our shareholders for your continued support. 2027 is going to be another pivotal year for us. Zaki and I will now take your questions. Thank you.

Conference Operator: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. To ask a question, you may press star followed by the number 1 on your telephone keypad. If you’re using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star followed by the number 2. Once again, that would be star one to ask a question. One moment, please, for your first question. Your first question comes from the line of Sean Westropp with Deep Sail Capital. Please go ahead.

Sean Westropp, Analyst, Deep Sail Capital: Hey, guys. How are you?

Ilan Danieli, CEO, Precipio Diagnostics: Hey, Sean.

Sean Westropp, Analyst, Deep Sail Capital: Can you guys hear me okay?

Ilan Danieli, CEO, Precipio Diagnostics: Yeah, hear you great.

Sean Westropp, Analyst, Deep Sail Capital: All right, great. Good quarter. Wanted to ask a little bit about the product sales and the scalability. You talked a lot about it in your comments here. Can you update us real quick on the current sales force, like what the size is, and kind of like how many folks you have in there? Then what, you talked about reinvesting some of the cash flow into that organization. What kind of do you see that size in the next year or so?

Ilan Danieli, CEO, Precipio Diagnostics: Yeah, thank you. Great question. Currently, our sales force is four, and we are planning on doubling that next year. As I said in the remarks, now that we have the recipe, we know how to work with distributors and how to efficiently get from lead to customer to convert, this is the time to be able to scale it up. We are going to expand that significantly. We expect by the beginning of the year to hire probably two more folks at least, and then continue throughout the year to really build this out. Part of it is also to meet the demand from our distributors. As we strengthen our connections with them, we are getting more and more leads, more and more prospects, more and more meetings that we need the team to handle.

Sean Westropp, Analyst, Deep Sail Capital: Got it. Great. On that sales cycle and sales side, do you have any idea now that you have kind of got four in place around ramp-up time of these new folks? When do they start kind of ramping up to actually able to deliver some product sales?

Ilan Danieli, CEO, Precipio Diagnostics: Yeah. Unfortunately, that is still an unknown variable with a pretty broad range. Just case in point, we had a customer going live this quarter in Q4 that we probably were working on for a year and a half almost. On the other side, we had a customer that we met for the first time in late September, and in fact, this week, they are going through training and they are going to start the validation. They will probably go live before the end of the year. So, I think the two bookends of the customer onboarding timeline is probably somewhere between three months and 18 months. We have come up with ways to shorten that, and we are implementing that, but some customers, it is just the process they have to go through, unfortunately.

Now, I think the way to fix that in terms of just scaling up revenue is just to have a large enough number so that every quarter, we have got another quarter million dollars, half a million dollars of new revenue coming in. That is just broad. It is just shots on goal at the end of the day.

Sean Westropp, Analyst, Deep Sail Capital: Right. Great. On the gross margin side, the product gross margin, no changes there. I do not think you guys have always had pretty healthy gross margins on that. Is there anything on the distributor impacts that would affect the gross margin or anything like that?

Ilan Danieli, CEO, Precipio Diagnostics: No, not at all. That is basically the calculation. We are currently hovering around the kind of high 40s, 50% gross margin. As we scale up, when we double our revenue, I think, I am trying to do the math in my head, but I think the margins jump to probably the mid-60s, and we will continue that way. This will, at a higher scale, it would be a good 70%, 75% gross margin.

Sean Westropp, Analyst, Deep Sail Capital: Got it. Great. That is all I had. Thanks, guys.

Ilan Danieli, CEO, Precipio Diagnostics: Thanks, Sean. Appreciate it.

Conference Operator: Your next question comes from the line of Jack Holden with Cutrol. Please go ahead.

Jack Holden, Analyst, Cutrol: Hi, guys. Congrats on the good quarter here and the product growth. In Q2, you talked about there’s 25 plus new qualified customers. I was wondering if you could give any color on if any of those have converted and what kind of that current count is?

Ilan Danieli, CEO, Precipio Diagnostics: In Q2, I am trying to think. Probably, I think we have in this quarter maybe two or three that have gone live, and a whole bunch of them slotted for the first half of 2027. That is approximately the timeline. There will be some that track in later than that. But we are seeing some good conversions, good progress with all of them as they go through the onboarding and validation.

Jack Holden, Analyst, Cutrol: Great. The $1 million product revenue, I noticed in the footnote something about some project revenue in there. Is that kind of a good baseline for us to work off of, kind of sequential quarterly growth as we exit into $10 million plus band in 2027?

Ilan Danieli, CEO, Precipio Diagnostics: Yeah, absolutely. I think the nice part of this is the building blocks. Once a customer is on board, they’ve got X volume of patient samples that is pretty consistent that comes in on a quarterly basis. We expect them, it is proven to be true that for the most part, they are going to have at least that in sequential quarters. But if you usually grow from specific customers, then when they add additional panels, and usually a customer will start with one or two panels, and within six to 12 months, they will have three to four panels. So, we will see kind of organic growth within those customers as well in the revenue growth. But yeah, I think, and our numbers have shown we have had, I think only once where the revenue has dropped, and that was because of the shift, an order from one quarter to the other.

Jack Holden, Analyst, Cutrol: Great. That is all from my side. I appreciate the time and congrats on the quarter.

Ilan Danieli, CEO, Precipio Diagnostics: Thanks, Jack.

Conference Operator: The next question comes from the line of Ben Haynor with Tina Chapel. Please go ahead.

Ben Haynor, Analyst, Tina Chapel: Hey, guys. Thanks for taking my question. As you look at expanding capabilities on the product side, are there any new tests or disease areas you’re kind of working on, and is that baked into the $10 million number for next year?

Zaki Sabet, Chief Operating Officer, Precipio Diagnostics: Ben, thanks for your question. Currently, the pipeline that we are mentioning only accounts for these products that are existingly available on the market. Our intent is to continue with the products that we have available. We’re pretty much focused on the heme or blood-related cancer space for the time being, until we get the growth that we’re looking to see, and then decide to expand into other disease areas outside of heme and blood.

Ben Haynor, Analyst, Tina Chapel: Great. That’s all for me. Thank you.

Zaki Sabet, Chief Operating Officer, Precipio Diagnostics: Yeah.

Conference Operator: The next question comes from the line of Vincent Cervato. Please go ahead.

Vincent Cervato, Analyst: Hi, congratulations on the good quarter. I want to apologize in advance because I do not have the skill set that helps me make the tax hole. I am struggling with the level of sales expense expected relative to the growth. I would imagine that the current sales staff with the established distributor relationships should be able to achieve a good portion of the growth that you have outlined for us. I just do not understand the level of additional investment on the sales side to achieve the targets you are talking about. Could you elaborate? What strikes me is that potentially there is some price declines factored in and/or demand issues, but correct me if I am wrong. Thanks.

Ilan Danieli, CEO, Precipio Diagnostics: Hi, Vincent. Thank you for your question. No, there are no price declines or drops in demand. We have a pretty strict pricing strategy that we hold across the board with all our distributors, so we kind of stick to that, and that is locked in contractually. There is no price decline, nor is there any decrease in demand. I think as we mentioned in the conference call, we have taken a very conservative approach in terms of our sales force. I think if you compare us to any other company, having a sales force of 34 is tiny. We did that by design. We could have easily raised $10 million in capital and hired 25 sales reps, and there are companies that do that.

I think we took a more conservative approach of taking this year to really study the market and study the interaction with distributors so that we can really make sure that when we hire a person, we have a sort of game book for them to step into, and how they interact with distributors and how they interact with customers so that they can be most effective. At the end of the day, every sales rep has an ROI on their back, if you will, and we want to make sure that we hit that. We have all had experience in the past where that has not happened. Yes, I understand. Your point is well taken, and we certainly are not happy with the sales growth.

But I think, as a company trying to balance shareholder value through dilution of additional capital versus growth, we made the decision to take this year to really study that. Next year, now that we have the cash reserves and we do not have to raise $10 million and dilute shareholders, we can do this properly. Does that answer your question?

Vincent Cervato, Analyst: Not exactly. Partially. I don’t think I was being-

Ilan Danieli, CEO, Precipio Diagnostics: Okay.

Vincent Cervato, Analyst: My question is not why aren’t you investing a lot more. I’m wondering why are you investing that much, because I would have expected the current sales force with their experience under the belt and the distributors’ relationships a little further seasoned than it was a year ago, that you could expect a certain amount of growth without any additional sales people approaching what you’ve outlined for Q4 of next year in terms of run rate. I’m surprised to have that run rate that you mentioned and a plan to double the sales force. It just doesn’t compute for me.

Ilan Danieli, CEO, Precipio Diagnostics: Well, I see your point. I think you have to take into account the timeline of results. As I mentioned, and as you’ve seen, it takes between, on average, between nine and 12 months from the initial conversation with the customer to go live. If you think about our sales team that was hired at the beginning of the year, by the time they get their training boots and are ready to go and really start to be impactful, that’s middle of 2026, which means it’s unlikely that they’ll even see revenue coming from there ever since the beginning of 2027. By that logic, hiring people throughout 2027 will yield results in 2028. But the goal is to kind of increase the level of the rate of growth.

Vincent Cervato, Analyst: Okay, I get it. Okay, I’m good. Thank you.

Ilan Danieli, CEO, Precipio Diagnostics: Thanks for your question.

Conference Operator: And once again, if you would like to ask a question, simply press star one on your telephone keypad. Your next question comes from the line of Daniel Wilson. Please go ahead.

Daniel Wilson, Analyst: Hey, Ilan. Great quarter. Love to see the progress and some of the ambitious targets that you have thrown out there. I am just zeroing in on the $10 million product sales run rate exiting 2027. Just curious what the bridge looks like, just given how long it takes to ramp the new reps and the fact that you are in process trying to hire sales folks at the moment. Kind of just bridge out for us maybe how much of it is customer conversations that are already underway versus a gap that you are trying to fill between now and Q4 2027?

Ilan Danieli, CEO, Precipio Diagnostics: Yeah. Thanks, Daniel. I can tell you our pipeline today, if we convert half of it, we are there. We have got a pretty good pipeline of customers that are in various stages of discussions and onboarding, et cetera. And I have always said, and I hate to sound like a broken complaining record, but it is so hard when you start with a customer to actually foresee when the first order will come in. But with our current pipeline, and that is why we have the confidence to here for the first time to sort of guide a number, we believe we are going to get there. And obviously, our sales team is not just sitting around. That pipeline continues to grow.

I think we’re pretty confident that we can beat the numbers that we’ve provided and kind of throughout the year see a gradual acceleration to reaching that run rate.

Daniel Wilson, Analyst: That’s awesome. It sounds like a substantially larger pipeline than you’ve had in the past if half of it gets you to that run rate. Has the pipeline been expanding pretty steadily as you’ve added reps? Or maybe some of that goes back to getting the distributor recipe right as well. Maybe if you could give an update there.

Ilan Danieli, CEO, Precipio Diagnostics: Yeah, it’s a little bit of both. Obviously, our sales team does not sit quietly and kind of twiddle their thumbs. So they’re working, doing a great job at interacting with distributors and getting customers to the qualification place where they actually become part of the pipeline. So the pipeline is a constantly growing number that we have. Again, part of the goal of increasing the sales rep, the sales team, is to accelerate that pipeline and have that pipeline get converted. If we look at this quarter, we grew by $100,000, right? That’s nothing. We want to see getting to increase of a quarter million dollars a quarter and even half a million dollars a quarter, so that we can really grow this thing and capture more market share.

Daniel Wilson, Analyst: Great. Just one more for me. If we kind of circle back to the Pathology Services business and the $30 million run rate target there, I think the Pathology Services revenue growth rate has slowed over the last couple of quarters, and it looks like maybe expecting a bit of a pickup. Could you just tell us a little bit maybe what would drive that? Is it new customers, new products? What would drive growth between now and the end of 2027 on the pathology side?

Ilan Danieli, CEO, Precipio Diagnostics: Yeah, thank you. Great question. I think there are two factors. I think number one is certainly new customers, and we are expanding actually the interaction between our product customers and our Pathology Services side of the business. We have actually seen quite a bit of success with customers that are on the product side that we have actually managed to pull in to provide a bit of pathology revenue. That is one area. We are probably going to hire one or two more reps on the pathology side as well. I think ultimately it is also management attention. We have been really focused this year on the product side and all the things we talked about figuring out the recipe, really building a strong team, building the marketing backbone for this.

I think next year, this will allow us to increase the team, will also allow us to really focus a little bit of our efforts on the pathology side of the business as well, and that should result in an increase in customers as well. There is not really any change to any products. The services side is pretty standard in terms of the analysis we do for patient samples that come in. That stays the same. Hopefully that answered your question.

Daniel Wilson, Analyst: Got it. Thank you. That is all I have for now.

Ilan Danieli, CEO, Precipio Diagnostics: Thank you, Daniel.

Conference Operator: I am showing no further questions at this time. I would like to hand it back to Ilan Danieli for closing remarks.

Ilan Danieli, CEO, Precipio Diagnostics: Thank you everyone for joining. I wish you all a nice holiday season, and we will see you in the next year. Have a good evening.

Conference Operator: Thank you. Ladies and gentlemen, this concludes today’s conference call. Thank you all for joining. You may now disconnect.