2019 annual report - shine medical technologies€¦ · phoenix that we achieved a new world record...
TRANSCRIPT
2 0 1 9AnnualR e p o r t
2 SHINE Annual Report 2019
Dear Fellow Stockholder,
2019 was an extraordinary year for SHINE. Our best year yet.
We made major progress on our production facility, which will manufacture molybdenum-99 (Mo-99) to diagnose heart disease and cancer. The rebar and concrete can be seen rising from the ground, beginning to take shape as the walls of a facility that has the potential to benefit one billion patients.
Both new institutional investors and early-stage investors continued to express confidence in our plan and progress, providing $125 million to help us accomplish our key priorities, including a $15-million award from the federal government.
During 2019, the SHINE team grew exponentially, ensuring that we had the right skills and experiences to achieve at the highest levels. And we did. The growth of the team during 2019 not only spurred our success, it accelerated our progress.
As a result, SHINE is being transformed from an idea to a company that is seen as the solution to the global isotope
LETTER TO STOCKHOLDERSshortage. As we made this transformation, we created significant additional value. While there was outstanding construction progress during 2019, there also were significant achievements outside the construction site.
• The NRC’s review of our operating license application is underway. Last July, we filed the application with the commission after an enormous effort, including more than 150,000 person-hours of work. The NRC accepted the application and began the review in October.
• We proved our isotope production technology through a full-scale run. Our demonstration of the neutron generator technology that will be the heart of the Mo-99 production facility was critical to moving the ball forward in 2019. The first production-ready unit ran for a full cycle of 5½ days, achieving greater than 99 percent uptime. We later announced with Phoenix that we achieved a new world record for a nuclear fusion reaction in a steady-state system.
• Many cancer treatments hope to extend life. SHINE’s lutetium-177 (Lu-177) may hold the promise of curing it.
3SHINE Annual Report 2019
We created SHINE Therapeutics to fulfill that promise. The division is focusing initially on Lu-177. Last spring, we entered an agreement with the Institute of Organic Chemistry and Biochemistry (IOCB Prague) that gives us exclusive global access to novel technology that’s important to our production of Lu-177. We announced in early 2020 that we produced patient dose quantities of Lu-177 with our scientific partners, which passed GE Healthcare’s quality testing, including international standards of Lu-177 purity.
All of these accomplishments have been planned and executed by the best team in the industry, a team that works to successfully transform our vision into reality. They breathed life into it at the start and have continued to ever since. It is incredibly gratifying to be working with a group as dedicated as ours.
As we continue to bring the SHINE dream to life in 2020, I know that you’ll continue to see strong progress as we move down the path to helping millions and millions of patients. SHINE ON!
Greg Piefer Founder, Chairman & Chief Executive Officer
3 SHINE Annual Report 2019
DELIVERING A RELIABLE SUPPLYSHINE is dedicated to being the world leader in the safe, clean, affordable production of medical tracers and cancer treatment elements.
MISSIONSTATEMENT
As SHINE advances its efforts to commercialize Mo-99,the global shortage of the isotope continues. Patients face delayed heart, cancer and other tests. Without Mo-99, some physicians are using an alternate scan that’s less accurate and more expensive.
It’s estimated that medical isotopes will be a $5-billion market by 2030. SHINE already has contracted with three industry leaders—GE Healthcare, Lantheus Medical Imaging and HTA, the largest isotope distributor in China. SHINE will supply these distributors with more than 10 million doses of Mo-99 in total, representing more than $100 million in revenue for SHINE.
SHINE is entering an existing, well-established market. Each year in the diagnostics market alone, tens of millions of patients undergo imaging procedures that rely on Mo-99 to help diagnose heart disease, cancer and disease elsewhere in the body.
This market will be supplied by the production facility that SHINE is building in Janesville, Wis. When it’s complete, the facility will be capable of supplying more than one-third of the global patient need for Mo-99.
SHINE also will build a production facility in Europe after establishing a direct presence during 2019. Harrie Buurlage was appointed SHINE’s vice president of European operations. He will oversee all of SHINE’s activities in Europe, including the company’s siting,
construction and operation of a medical isotope production facility there. When the U.S. and European production facilities are complete, they will be able to fulfill two-thirds of the global patient need for Mo-99.
Current European isotope producers are planning to cease operations in the next several years. SHINE is working to ensure that European patients have uninterrupted access to the lifesaving products our team and technology can provide. SHINE will play a significant role in Europe and the global market because of its safer, cleaner and more cost-effective isotope production process.
As the shortage persists, SHINE remains dedicated to solving it by delivering a reliable global supply of Mo-99 for physicians and the millions of patients who use it each year. There’s been good progress towards that goal, as construction of SHINE’s production facility advances, rising visibly from a cornfield in Janesville.
12345
Saline Vial
Alumina with Mo-99 Absorbed
Lead Shield
Filter
Collection Vial
1
3
4
5
2
SHINE THERAPEUTICS
Lutetium-177
177Lu
4SHINE Annual Report 2019
Photo courtesy of Jakum Stadler
Radiotherapeutics have the potential to change the way cancer patients are treated. While many current treatments seek to extend the lives of cancer patients, Lu-177 may hold the promise of curing them.
That’s why the company created SHINE Therapeutics, and appointed nuclear medicine and company veteran Katrina Pitas to lead it. Katrina and her team are focused initially on Lu-177, a valuable driver of this emerging market.
Last year, the company entered an exclusive agreement with IOCB Prague for a unique separation technology. The technology enables SHINE Therapeutics to create therapeutically desirable non-carrier-added or nca Lu-177, a highly concentrated form of the isotope. The technology was essential to the achievement of a major milestone for
SHINE Therapeutics. The division in early 2020 delivered its first patient dose quantities of Lu-177 to its partner GE Healthcare. The lot passed GE Healthcare’s quality control testing, including the international radionuclidic purity (RNP) standards. The quality and purity of the nca Lu-177 provided to GE Healthcare bodes well for its commercialization.
Lu-177 is used to treat neuroendocrine cancers. It also shows promise for the treatment of metastatic prostate and other cancers. The isotope is a low-energy beta-particle emitter that works by directly irradiating cancer cells after being delivered to the cancer site by a targeting molecule. There are Lu-177 clinical trials for a wide range of indications.
STRONG CONSTRUCTION PROGRESSRebar and concrete rise from where there was an open field not long ago. Two construction cranes stand over the site, delivering cages of reinforcing steel that strengthen the building’s massive concrete walls. Workers lay conduit in floors and walls before concrete is spread over and through them.
SHINE’s 46,000-square-foot production facility will be home to eight neutron-generator-based isotope production systems. After the company broke ground for the medical isotope production facility last May, construction progress has been substantial and steady.
Excavation for the production facility began in September and the first foundational concrete was poured in mid-November. The structure’s floors and walls continue to be poured. Strong progress will continue during 2020, bringing the company closer to its goal of commercial Mo-99 production.
When SHINE reaches that goal in 2022, the facility will play a significant role in alleviating the worldwide Mo-99 shortage. We are grateful for the hard work and commitment to quality of Baker Concrete Construction, J.H. Findorff & Son, Lycon and all of our construction partners as we work together toward that goal.
5 SHINE Annual Report 2019
6SHINE Annual Report 2019
Being out on the construction site and supporting the construction activities
really feels like we’re trailblazing.
Abbey J. Donahue, P.E.,Engineering Manager
‘‘
‘‘
7 SHINE Annual Report 2019
SHIN
E 2
01
9 M
ILES
TON
ES
Gro
und
brok
en fo
r pr
oduc
tion
faci
lity
The
prod
uctio
n fa
cilit
y is
a c
ritic
al s
tep
tow
ard
esta
blis
hing
a r
elia
ble
glob
al s
uppl
y of
life
-sa
ving
isot
opes
. The
46
,000
-squ
are-
foot
faci
lity
will
be
hom
e to
eig
ht o
f SH
INE’
s ac
cele
rato
r-ba
sed
prod
uctio
n sy
stem
s,
capa
ble
of p
rodu
cing
mor
e th
an o
ne-t
hird
of g
loba
l pa
tient
nee
d fo
r M
o-99
.
Key
Lu-1
77
tech
nolo
gy li
cens
edSH
INE
ente
red
an a
gree
men
t w
ith IO
CB P
ragu
e th
at
prov
ides
the
com
pany
with
an
exc
lusi
ve g
loba
l lic
ense
to
a n
ovel
tech
nolo
gy th
at
enab
les
SHIN
E to
pro
duce
th
erap
eutic
ally
des
irab
le
non-
carr
ier-
adde
d Lu
-177
. SH
INE
will
use
the
inno
vatio
n to
pro
duce
Lu-
177
for
the
trea
tmen
t of c
ance
r.
Tech
dem
onst
rati
on
valid
ated
bus
ines
s ca
seSH
INE
and
Phoe
nix
dem
onst
rate
d th
e ne
utro
n ge
nera
tor,
whi
ch r
an fo
r a
full
prod
uctio
n cy
cle
of
5½ d
ays
with
an
aver
age
syst
em n
eutr
on y
ield
m
easu
red
at 1
10 p
erce
nt
of th
e re
quir
ed
outp
ut w
ith g
reat
er th
an
99 p
erce
nt u
ptim
e.
“The
pac
e of
nuc
lear
te
chno
logy
alw
ays
has
been
ve
ry s
low
. But
com
ing
to S
HIN
E,
we’
ve s
kipp
ed o
ver
the
‘fusi
on
is 2
0 ye
ars
away
’ men
talit
y an
d w
e’ve
act
ually
pro
ved
that
its
muc
h m
ore
atta
inab
le to
day
than
mos
t peo
ple
thou
ght.”
RICH
SIS
SON
Bui
ldin
g O
ne
Ope
ratio
ns M
anag
er
Jane
svill
e tr
ansf
ers
91 A
cres
to
SHIN
ETh
e Ci
ty o
f Jan
esvi
lle
tran
sfer
red
91 a
cres
to
SHIN
E fo
r th
e co
mpa
ny’s
prod
uctio
n fa
cilit
y, w
hich
w
ill m
ake
lifes
avin
g m
edic
al is
otop
es. C
EO
Gre
g Pi
efer
exp
ress
ed h
is
grat
itude
to th
e Ja
nesv
ille
com
mun
ity
and
mem
bers
of
the
city
cou
ncil
at a
cer
emon
y.
“Thi
s tr
ansf
er r
epre
sent
s th
e ne
xt s
tep
tow
ard
prod
uctio
n of
life
-sav
ing
med
ical
is
otop
es, a
nd I
am g
rate
ful
to th
e en
tire
Jane
svill
e co
mm
unit
y fo
r th
eir
earl
y su
ppor
t and
bel
ief i
n SH
INE,
”
GRE
G P
IEFE
RFo
unde
r &
CEO
JUN
E
MA
Y
APR
IL
MA
RCH
FEBR
UA
RY
JAN
UA
RY
Phot
o co
urte
sy o
f Jak
um S
tadl
er
8SHINE Annual Report 2019
New
wor
ld r
ecor
d ac
hiev
ed b
y SH
INE
and
Phoe
nix
The
two
com
pani
es a
chie
ved
a ne
w w
orld
re
cord
for
a fu
sion
rea
ctio
n in
a
stea
dy-s
tate
sys
tem
. The
rea
ctio
n yi
elde
d 46
trill
ion
neut
rons
per
sec
ond,
set
ting
a ne
w s
tand
ard
that
cou
ld e
nabl
e ad
vanc
es in
m
edic
ine,
man
ufac
turi
ng a
nd c
lean
ene
rgy.
Clos
ed$5
0-m
illio
n fi
nanc
ing
SHIN
E cl
osed
a $
50-m
illio
n fin
anci
ng w
ith O
aktr
ee
Capi
tal M
anag
emen
t, a
lead
ing
glob
al in
vest
men
t fir
m. T
he fi
nanc
ing
supp
orts
pro
duct
ion
faci
lity
cons
truc
tion
and
the
com
mer
cial
izat
ion
of
diag
nost
ic a
nd th
erap
eutic
is
otop
es, i
nclu
ding
Mo-
99
and
Lu-1
77.
Ther
apeu
tics
di
visi
on c
reat
edTh
e cr
eatio
n of
the
divi
sion
en
hanc
es th
e co
mpa
ny’s
abili
ty to
focu
s on
filli
ng
criti
cal n
eeds
in th
e ra
pidl
y gr
owin
g th
erap
eutic
is
otop
e m
arke
t. Th
e di
visi
on w
ill fo
cus
initi
ally
on
the
deve
lopm
ent a
nd
com
mer
cial
izat
ion
of L
u-17
7,
a th
erap
eutic
isot
ope
that
is
used
to tr
eat c
ance
r.
NRC
beg
an
tech
nica
l rev
iew
The
NRC
acc
epte
d SH
INE’
s ap
plic
atio
n fo
r a
licen
se to
ope
rate
the
com
pany
’s pr
oduc
tion
faci
lity
and
bega
n it
s de
taile
d te
chni
cal r
evie
w.
The
NRC
’s ac
cept
ance
, or
“doc
ketin
g,” c
onfir
ms
that
SH
INE’
s ap
plic
atio
n w
as
com
plet
e an
d of
suffi
cien
t qu
alit
y fo
r th
e re
view
to
sta
rt.$1
5-m
illio
n aw
ard
rece
ived
from
DO
ETh
e D
epar
tmen
t of
Ener
gy’s
Nat
iona
l Nuc
lear
Se
curi
ty A
dmin
istr
atio
n aw
arde
d SH
INE
$15
mill
ion
as p
art o
f it
s eff
ort t
o es
tabl
ish
a re
liabl
e, U
.S.-p
rodu
ced
supp
ly o
f Mo-
99. T
he
awar
d re
quir
es S
HIN
E to
pr
ovid
e $1
5 m
illio
n of
m
atch
ing
fund
s.
Ope
rati
ng li
cens
e ap
plic
atio
n su
bmit
ted
The
com
pany
file
d an
ope
ratin
g lic
ense
ap
plic
atio
n w
ith th
e N
ucle
ar R
egul
ator
y Co
mm
issi
on to
pro
duce
M
o-99
at i
ts p
rodu
ctio
n fa
cilit
y. S
HIN
E br
oke
grou
nd o
n th
e fa
cilit
y la
st
May
. The
faci
lity
will
be
the
first
of i
ts k
ind
in th
e w
orld
.
“The
bes
t way
to s
ecur
e th
e fu
ture
is to
cre
ate
it an
d th
e su
bmis
sion
of
our
NRC
app
licat
ion
is th
e la
test
exa
mpl
e of
SH
INE
crea
ting
an e
xciti
ng,
prod
ucti
ve fu
ture
.”
JIM C
OST
EDIO
Vice
Pre
side
nt o
f Re
gula
tory
Aff
airs
&
Qua
lity
Dir
ect
pres
ence
in
Euro
pe e
stab
lishe
dSH
INE
appo
inte
d H
arri
e B
uurl
age
as v
ice
pres
iden
t, Eu
rope
an
oper
atio
ns. H
e is
ov
erse
eing
all
of S
HIN
E’s
acti
vitie
s in
Eur
ope,
in
clud
ing
the
com
pany
’s si
ting,
con
stru
ctio
n an
d op
erat
ion
of a
pro
duct
ion
faci
lity
ther
e. H
arri
e br
ings
mor
e th
an 2
5 ye
ars
of e
xper
ienc
e in
the
nucl
ear
med
icin
e in
dust
ry
to h
is n
ew r
ole
at S
HIN
E.
“I k
now
the
Euro
pean
m
arke
t wel
l and
am
co
nfide
nt th
at S
HIN
E w
ill
play
a s
igni
fican
t rol
e he
re
and
in th
e gl
obal
mar
ket,
part
icul
arly
bec
ause
of i
ts
safe
r, cl
eane
r an
d m
ore
cost
-eff
ecti
ve
prod
uctio
n pr
oces
s.”
HA
RRIE
BU
URL
AGE
Vice
Pre
side
nt,
Euro
pean
Ope
ratio
ns
DEC
EMBE
R
NO
VEM
BER
OCT
OBE
R
SEPT
EMBE
R
AU
GU
ST
JULY
JUN
E
In February 2019, SHINE released our first Diversity & Inclusion Report and Strategic Plan, which detailed our Diversity and Inclusion Task Force’s goals for 2019. The plan included establishing a baseline, data and performance metrics for success, implementing a blind resume screening process, recruiting at more diverse institutions, conducting an equity review and developing an internal training program. The full report is available at www.shinemed.com/diversity. The D&I Task Force members also attended local and national events and provided monthly educational topics for employees.
COMMUNITY & EMPLOYEE ENGAGEMENT
SHINE’s community and employee engagement program reflects our commitment to giving back. It strengthens our relationships with partners, employees and others who share our commitment to making our community the best it can be. Working together, we’re making a real difference.
Our community engagement program supports partners who share our mission of helping to eradicate heart disease and cancer, promoting nuclear, and science, technology, engineering and math (STEM) education, and protecting and improving our environment.
The high level of SHINE employee engagement in these programs is critical to our success. We celebrate the company’s successes together, leading to better communication
and higher productivity. Here are just a few of the ways we lived our mission during 2019.
SUPPORTED the Boys & Girls Club of Janesville with a STEM lab grantCOLLABORATED with local students in the first annual 3D design competitionDONATED 40 volunteer hours at the second annual SHINE Up! Our Community Day at Rotary Botanical GardensRAISED $8,400 for the American Heart Association to support education and training in schoolsDISTRIBUTED 155-plus toys to pediatric cancer patients and families in need during the holidays
9 SHINE Annual Report 2019
Diversity & Inclusion
10SHINE Annual Report 2019
Annual Growth of SHINE’s Workforce
Total Employees10 20 30 40 50 60
2011
2012
2013
2014
2015
2016
2017
2018
2019
SHINE YEARLY EMPLOYEE COUNT
70 80 90 100 110 120 130
INTERNS
FULL TIME
27
8 2
24 2
30 5
36 4
61 9
77 13
18112
25 1
We are fortunate to have a truly unique team at SHINE. Because of their skill, hard work and dedication we have made tremendous strides
over the past year.
Eric Schutt,Chief People Officer &
VP, Government Affairs
‘‘ ‘‘
11 SHINE Annual Report 2019
Both new and long-time investors continued to express confidence in the company’s direction and progress last year. SHINE raised $125 million during 2019, including $50 million from leading global investment firm Oaktree Capital Management.
The financing supports SHINE’s ongoing construction project and its work to commercialize diagnostic and therapeutic isotopes, including Mo-99 and Lu-177. The SHINE fundraising total includes an award of $15 million from the federal government.
SHINE is grateful for the strong, ongoing support of both its new institutional investors and the many early-stage investors who continue to support the company.
FUNDRAISING MILESTONES
2019 was an incredible year for SHINE overall and our fundraising activities
reflected that.
TODD ASMUTH,President & CFO
‘‘ ‘‘The company was pleased to welcome Oaktree to its growing list of top-tier institutional investors. Oaktree has broad expertise in complex infrastructure projects like the construction of the company’s isotope production facility.
Oaktree joined Deerfield Management, a leading health care investment firm, as one of SHINE’s key partners. The company also extended its partnership with the federal government.
The Department of Energy’s commitment to SHINE coupled with investments from both new and old investors were essential to its solid year of progress and will help SHINE to boldly advance its plans.
12SHINE Annual Report 2019
SHINE ended 2019 in a strong financial position after raising $125 million during the year. SHINE is deploying this capital to support the commercialization of diagnostic and therapeutic isotopes and to construct its medical isotope production facility. Both are key value drivers for the company.
The progress during 2019 on these and other key SHINE initiatives illustrates not just the company’s financial strength, but the hard work and dedication of the SHINE team. The company entered 2020 with both the strongest financial position in its history and a team dedicated to creating value as it continues to execute on SHINE’s priorities.
PersonnelThe company’s headcount increased from 77 employees to 112. The majority of the new hires are driving the construction of the production facility, and the design and fabrication of the equipment needed to operate it.
ConstructionSHINE made great progress on the facility during 2019. Construction staff mobilized to support site preparations, mass excavation, and structural concrete activities during the fall. Construction will continue through the winter and reach new heights in the upcoming year.
First Production Unit & Operating License ApplicationOver a 5½-day full production cycle demonstration in June, SHINE and Phoenix successfully tested the first production-ready neutron generator. The two companies also achieved a new world record related to
nuclear fusion.
First production unit demonstrations have been completed. SHINE
submitted its operating license application to the NRC in July. The commission began its detailed review of the application in October. While there are no further expenses associated with compiling the application, SHINE
will support its ongoing work with the NRC to secure approval of
its application.
FinancingSHINE raised $125 million during 2019.
Financing expense increased as a result of the record year of fundraising by the company.
Internal OperationsInternal operations expenses during 2019 included Therapeutics, professional fees, intellectual property development and protection, payroll and benefits, and operational expenses at our headquarters and Building One.
FINANCIAL SUMMARY
First Production Unit Demo &
Operating License Application
12%
2019USE OFFUNDS
PersonnelCosts
32%
Construction
22% InternalOperations
12%
Financing
22%
13 SHINE Annual Report 2019
SHINE VISION
Phase 1Safety, quality and other non-destructive testingEnsuring the safety and quality of lightweight aerospace, defense and civilian components. Phoenix was created for this purpose.
Phase 2Medical isotopes and other small-scale transmutationsConverting one chemical into another, most notably to create medical isotopes that help tens of millions of patients.
Phase 3Destruction of nuclear waste and other large-scale transmutationsRecycling and destruction of waste from fission reactions, enabling carbon-free nuclear energy to become a more acceptable part of the mix.
Phase 4Clean energy generationProducing clean, safe, affordable energy from fusion, exponentially improving humanity and the planet.
TO PROFOUNDLY IMPROVE HUMANKIND AND THE PLANET USING NUCLEAR TECHNOLOGY
*increase in scale of technologies, output, and market size
There are four phases of our founder’s vision. Each phase is incremental to the last and enables us to build the team, technology and economic engine for success. What we build during one phase will be the foundation of our achievement of the next.
The scale and complexity of the problem, its importance to humankind and the market for its solution grow by up to 100 times from one phase to the next. Today, SHINE is laser-focused on Phase 2 of the vision: creating medical isotopes so that patients can get the care they need when they need it.
The Four Phases of the Vision
10 - 100x 10 - 100x 10 - 100x*1. 2. 3. 4.
14SHINE Annual Report 2019
BOARD OF DIRECTORS
EXECUTIVE TEAM
GREG PIEFER, PH.D.Chairman &
Chief Executive Officer
ERIC VAN ABELSenior Technical Advisor
TODD ASMUTHPresident &
Chief Financial Officer
JIM COSTEDIOVice President, Regulatory
Affairs and Quality
STEVE MILTENBERGERChief Operating Officer
CHRIS LEEVice President, Finance
HARSH SINGHChief Strategy Officer
NATHAN SCHLEIFERGeneral Counsel &
Corporate Secretary
KATRINA PITASVice President &
General Manager, Therapeutics Division
HARRIE BUURLAGEVice President,
European Operations
ERIC SCHUTTChief People Officer &
Vice President, Government Affairs
ROCK MACKIE, PH.D.Chief Innovation Officer,
UW Health;Emeritus Professor of Medical Physics,
UW-Madison
GREGORY OD SMITHCEO, LES and Chairman,
URENCO UK (retired)
BRAD WUCHERPFENNIG
President,Baker Construction
Enterprises, Inc.
PAUL RYANPresident,
American Idea Foundation;Former Speaker of the U.S.House of Representatives
DAVID NEWBERGPartner,
DelBello Donnellan Weingarten Wise &
Wiederkehr, LLP
GORDON GUNNLAUGSSON
Principal, Lakeview Equity
Partners, LLC
TODD ASMUTHPresident &
Chief Financial Officer,SHINE Medical
Technologies, LLC
GREG PIEFER, PH.D.Chairman &
Chief Executive Officer,SHINE Medical
Technologies, LLC
We are pleased to welcome Paul Ryan and David Newberg to SHINE’s board of directors.
Corporate Headquarters101 E. Milwaukee St. STE 600Janesville, WI 53545 USA
Toll Free: 877.512.6554
www.SHINEmed.com
@SHINEmedical
Legal DisclosureCertain information included in this document constitutes forward-looking statements, including, among other things, statements concerning our objectives and our strategies to achieve those objectives, statements with respect to Management’s beliefs, plans, estimates, and intentions, and statements concerning anticipated future events, circumstances, expectations, results, operations, or performance that are not historical facts. Forward-looking statements can be identified generally by the use of forward-looking terminology, such as “indicators”, “outlook”, “objective”, “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “should”, “plans”, “continue”, or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect Management’s current beliefs and are based on information currently available to Management. The forward-looking statements in this document are not guarantees of future results, operations, or performance, and are based on estimates and assumptions that are subject to risks and uncertainties, which could cause our actual results, operations, or performance to differ materially from those reflected in the forward-looking statements. Although the forward-looking statements contained in this document are based on what Management believes are reasonable assumptions, there can be no assurance that actual results, operations, or performance will be consistent with these statements. We undertake no obligation to revise or publicly release the results or any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue influence on such forward-looking statements. The financial information in this document includes forecasts, projections, and other predictive statements that represent Management’s assumptions and expectations in light of currently available information. These forecasts, etc. are based on Management’s expectations and are subject to variables and uncertainties. The Company’s actual performance results will differ. Consequently, no guarantee is presented or implied as to the accuracy of specific forecasts, projections, or predictive statements contained herein.