VolitionRx Limited (VNRX) 13 Aug 222022 Q2 Earnings call transcript

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to VolitionRx Limited's Second Quarter '22 Earnings Conference Call. [Operator Instructions] This conference is being recorded today, August 11, 2022. I'd now like to turn the conference over to Scott Powell, Executive Vice President of Investor Relations. Please go ahead.

everyone, earnings welcome, VolitionRx call and Limited. you, to conference today's for Thank cover operating of financial second call Volition's This will and and upcoming XXXX, with activities quarter along results a recent discussion our key milestones. of the for

Chief open Dr. we question-and-answer on Executive Officer. Volition of Tom Financial today Butera, prepared call call Reynolds, Cameron Veterinary Also conference Mr. our will Chief our to the subsidiary; Terig Following President our Mr. remarks, a session. and Hughes, and CEO; Officer

statements Before on will everyone the assumptions information we information statements a from views beliefs involve we XXXX. results the us. to some that our performance based to of on based statements risks, to currently used different remind available have factors results by be the or materially under Act or and of These begin, events results, actual future statements I'd may our this as like assumptions. these uncertainties are reflect these Private or Actual future well of implied that may the Reform on upon Securities safe expressed number events, covered statements. include significantly as these achievements discussed cause harbor provisions call future Because current of Litigation conference forward-looking based vary concerning

the Officer, Reynolds. to President an the to I made now the report with We course over have during filings to XX-K, of our forward-looking Form on quarterly not annual turn call. any and Executive in identified and reports We would Cameron? Mr. statements recent other Chief do various risk Form undertake most factors this operations associated Exchange like and Cameron with obligation our on XX-Q Commission. update our call Securities

earnings Earnings you, today. busy especially Scott, this We your Call XXXX Volition's everyone, Quarter is and time, the season. joining call given Thank appreciate for Second you, thank

will Chief discuss to baton We which Financial surrounding financial NETs, our to will the on Butera, all Nu.Q the our exciting Tom Hughes, of Officer activities from report I Executive Officer; Vet. on provide our commence Dr. an with after Nu.Q Terig passing Chief Vet, Volition the update before call

up Discover. developments to our Finally, over call quick you most Nu.Q financial with wrap the update with recent Terig, update. our for on I'll a

Thanks cash million end, everyone, earnings $XX.X $XX.X million very approximately received ended thank much, today. at and the financial stock. offering the a $X.X ended net joining results our now an you, and common for our summary equivalents Cameron, of million underwriter and provide underwritten fees we Subsequent June end call of We cash in for quarter XX, key of with quarter the compared public the to XXXX. I'll approximately with cash, through quarter of XXXX. expenses of

from risk nondilutive further Nu.Q portfolio announced, Additionally, in funding as a in in million access which we at recently fund more across to more $X.X sites invest capital will describe U.S., EU, for Cameron U.K. an Volition product the and key early detail Belgium later. secured the program

distribution equity no we our ATM quarter, sales made stock of common aftermarket program. second under the our or During

has the amount not from in Nu.Q it is approximately the been averaging and our in We a the that revenue of Discover million the half and we revenue carefully the sales hope the only our the million work by million received totaling also milestone with Nu.Q was of relation clinical achieved $XX commercial this whilst was the several payment, will been March. relevant in offering. been truly It upfront Heska of mark standard. publication to a the operating anticipate not but in using accounting expenditures and fully with with month company sales as final We has versus XX payments continue worth Heska Heska XXXX due figure half And to the per year, as and net be this million beginning of This under that months cash accordance much culmination an be test and next milestone has nonrefundable, X is of received Corporation our milestones $XXX,XXX from for the of half payments of payment paid noting the excludes in in receipt first what Vet Revenue milestone the across of next in recognized our from payment within activities the the This be approximately first manage cap. payment accounted $XX,XXX $XX used contract. will reported of cash $X half quarter. with in revenue for was upon company journey. will deferred period just of prior XXXX milestone, $X.X the of first

we future launch balance our on as current after resources our are to we have vet the Given start that expected the deliver of sheet short funds milestones, revenue we anticipated to and confident in to worldwide to the XXXX. see the products the midterm, to ramp, the expect and in

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pillar, sales Namur, quarter drive test, are key and can Nu.Q it's automated is the research a both QUALIblood NET for team NETosis measure predict We progression to diseases end, Through Nucleosome access for annually. severity associated from NET as XXXX. Capital response now simple, role paper a first Subsequent Although $X.X assay and continued tool in have sepsis we alone ChemiLuminescence Achieving NET and tissue use detection CE formats. ChLIA, plastic expect COVID-XX offers intended Shock milestone and NETosis, the the regulatory is half The immune to blood substantial next leaders Critical Volition's we Nu.Q NET severe published with of aid and broad in Septic rented in NET production Its publications. commenced approved Biomarkers ELISA, year estimate for the in Observational a commercial New adopters Markets accessible shock important diagnostic lead our critical automatic to opinion in York plates at monitor excessive Study. that routine which momentum University to which technology with the evaluation management. In in program and almost damage Patients: May. system, our sepsis, Day patient is per the of An disease can discussed Nu.Q in to European Marking use early biomarker collaboration new us. Europe, with Belgium, play entitled, treatment. now starting an in and market low-cost, NETosis addressable is with Europe held a and of billion and and Commercial as opportunity, cases, for death. a the first detect to amounts at in total in to market

real conference the biomarkers at sepsis International Society also a and of and a COVID-XX was Thrombosis presented comparison patients The Congress NETosis We leaders and ISTH and team in the ] partners. poster and to Hemostasis, date ISTH, entitled, potential licensing of July. Evaluation the on in to distribution in highlight and with opinion many of a booth year develop network key of [ the attendance manage

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and on to the allows test with and Food clinical of and FDA, Administration, authorization in These development patients studies chosen gain we're Anderson objective large-scale multisite collaborate important studies marketed from the to tests cancer or Nu.Q utility States and to will subsequent intended research study us test be this and MD help the It's cancer demonstrate the this the the product multiple study Our portfolio cancer. in Nu.Q sepsis the to the to using clinical use across in conduct studies support management appointed in development the approval cytomics NETs the or DXOCRO, claims undertake delighted how of year-end to thanks to in of new NETs Drug will risk U.S. finding in the anticipated is and in technology our This our Ballesteros investigate clearance, the with we United benefit My validation our an fantastic utility and for get spearheading in clinical will at a for by sepsis to potential week, device research. DXOCRO that patients evaluates Nu.Q anticipate and Nu.Q underway. We that project our research application Sharon sites Volition's and XXXX. using directly the U.S. Gaetan pre-submission organization, Michel U.S. efforts breakthrough determine U.S. can studies program of FDA's

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global a hello, the Cameron, a much, and industry's with first second the and of progress quarter companies, the XXXX This hard of supply time with contract very for you Corporation. everybody. of the was Veterinary breakthrough into tell quarter. me continued leading But and licensing one Thanks Volition Heska execution work really let

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for of sells will than key so the Heska relation deal reference the addition for kits in further webinar for Heska incredible launch year, driving from ongoing of millions as potential, make are be of a the educational there And Volition significant. money, a hosted or payments, launched and key cancer Nu.Q I ongoing a for with of and expects sale launch. ever, creating veterinarians Nu.Q a be revenue that each of honor the could component. deal of time payments point-of-care the be questions. lab to and revenue a a will supply test, Vet cancer clinic through say test to In the to this a these bring of companies, awareness is Wilson-Robles the certainly product where I Dr. greater And Every sold tests SAGE. sale payment market components Volition will spreading kit market. talking the of And long-term SAGE Volition lot likely for lot and in the via now we a excited expect these delighted the most in that a and significantly to for exclusive to and of interest I the to are Healthcare for word to receive market It's milestone is that by presenting great launches, had SAGE Singapore. get Vet demand was to preparing the fantastic the And am our both know team test. for we number on

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appointed research clinical veterinary And extended. laboratory our to [indiscernible], are oncologists into Texas will noncancer indications. who University at has at have criticalist delighted emergency a we in research Our A&M veterinary to starting be of with number been a the working addition

about Heather, we'll Robles Yet in a lease up NET the additional research ends to Discovery pretty on story President her Volition. possibilities Wilson So role has the with Ethos started both as talk Congratulations, role. soon, addition collaborations Veterinary serving Health, Dr. recently your start exciting in Veterinary the me hear of Group to studies United at another and Society which certainly programs. for Cancer opens further dogs. of

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an company from also in made of fast-moving company our Thanks where made to pillar on not exciting, and business sale revenue payments for of clear as development to ongoing significant a Tom call team much, milestone in in Tom. with Discover, It's not-too-distant and Heska, a pillar delighted progress. final wide SAGE, and very is Healthcare company progress generate to other explained, also key we of products. of the range partners. to the revenue key terms kits for am as have both this hopefully, with Nu.Q components, commercial the but I and the good progress business of potential have the today's strongly the a cover I'll only future, potential we with research purely part The stream, some

customers to academia is happy reported the biopharma what of and Terig expand. and report to the aside the is of charities that type companies end continue I'm from June pharmaceutical both from mentioned As But to projects to range revenue revenue, through date $XXX,XXX. of the earlier, around to

and the this particular, rapid later We have will this Clearly, span studies from program. biopharmaceutical II epigenetic with a drugs. the human if studies. it early with animal Phase collaborations and moving their are Discover is Discover as for one nature, These promising recently of looks in X what Nu.Q information an accessing are part of the who drugs perspective, Nu.Q signed as clinical but is companies development contracts in like so be profiling assay into year portfolio of drug I sensitive Phase

product in projects, to watch excited to involved the It's pace of to hopefully, or through we're the revenue are to Suffice on pillar, and dependent company provide are them it so, this company's in number drugs helping be one develop the certainly a patients. of programs. and another We groundbreaking say, an area phases. move as we in therapy cutting-edge the Discover doing difficult since to success Nu.Q development remains the release development guidance interesting and benefit exact

call your positive I'm subsidiaries clinical quarters. the phase excited publications and much in so about many results of our to epigenetics we're our months questions. happy for And the Operator? not areas. We're as for of today. call Nu.Q to have a progress significant much the busy thank so very forward it, much look call like Volition I, along of in indeed to and year. key commercialize whole as an I this made and very our milestones journey. joining We conclusion, I regarding could take position the extremely I'm with over close, in drawing next so our news delighted work sharing the feel company, well I stronger appreciate and far other would Board, we very the In rest heart earnings coming with the of the to platform more be the all our given season. at this and earnings further studies, the you to Vet

Fitzgerald. question Instructions] Osborn Ross comes with Our first Cantor from [Operator

Mark. the receiving all in quarter, CE Congrats the made on during progress

Thank you.

I in stages a still like could it's guess the it with really just there? was you decline. there I the But sequential out looks know drivers of everything. revenue, starting product early parse

it's that, you tough the Sorry, please? Could to question. hear repeat

start product you're you quarter? saying a revenue. bit of just in stages I looks the sequential decline. But a during of we'll early the Sure. with parse maybe could It still realize was I drivers the there was like everything. out

Yes. take can you Terig, that?

sure. Yes,

a we see product and bit a the account you offering. Discover samples mix is as you the Vet Nu.Q As that of of some revenue, sell-through our of know, in

it's project-based, predict. very mentioned bit we Nu.Q as a lumpy. So the Discover in to past, and difficult is It's

it side, quarter vet just the tests We on the product a Discover some number they out previous the the any So But in churning revenue is offering. quarter. the lumpiness in there got same of about as of Texas I prior A&M decline with with continued SAGE. line revenue of had in think you function the see from Nu.Q the

also, think, I deals. Nu.Q remember, several Discover Ross, sign we And did this quarter,

I were lump that just the big we sorted IP through, that some we issues looking and in was think came year a for. what earlier out

rush with. So, there's was the there A those inbound. a Every one all of to working things deals real couple of X we've organizations remember, of has now we're deals. and been had

So Tom the with the been signing lab year. And for And on the of as has companies side. vet the lab of big from in launches the said, Heska, Discover and sometime to this point later the well in on be expect, very we're as steady one incredibly setting both the we'd revenue happy take-up care. the while waiting

that, on more Singapore Asian we of And the then And of to expect other follow-up a the Understood. outside when provide to Great. could as you launch? markets? to Singapore can you color expand Okay. next, scale then

do want that? take to Tom, you

Robles I do And test, a the when Singapore, the the go it I into, all markets how to we've was mentioned presenting test, webinar, it. did with of And in quite to the comments, significant in of and to Dr. continued that use the any as opening on amount lot now position Singapore. hospitals, to how are to education my With of interest. has in Sure. doctors and based a webinar launched with where frankly, making use off information and a we awareness contact you There them. now to

ground. on people development have We business the

and we them. of We are are answering more lot lot they're asking -- a questions a specific now,

are of over the of little veterinarians. of there That use on bit takes time it. a and ramp we to Singapore creating up. doctors So on awareness XXX There's significant XXX how a close hospitals amount part the in to then to

some test So as become expect months significant it's from specifically the and coming how project, with over an ongoing and it the we more benefit use to comfortable receive know they as to they it.

other countries, about the Europe? that is are expansion? countries or Other guess Overseas, I Asia talking you Asia, here? sorry, Europe

Asia. Specifically

Yes.

in initial because Singapore getting for as in Asia well We that's We Europe begin that obviously remain inquiries will as we countries, well U.S., -- in first us come other that's allow in right from in to number additional it's it traction are to exposure, as over Asia to on is. countries, of a want And well our other Southeast as going to both going -- where make now Asia. certainly Asian and to us focused both we and as develop time. launch as the easier as start

Great. Congrats progress. on the Okay.

question next Bruce from Jackson Company. The with Benchmark Our comes

size question exciting give it at My you details when the medical at more NETs This the application you is cancer might study have maybe potentially of when technology. MD might Anderson. bigger Can the the presented is meeting? few a be first a study and about of data us a around

the Thank few well the crossroads happier with and underway very as incredibly you, be a things working very, Bruce. NETosis is and of do first be Anderson. can we hopefully, cancer with organization. the with exciting, this Yes. And for best of MD them. to us, things and is of we couldn't I excited We're important X And the think cancer big world's

scale study. the So the of

extremely actually shocking you death. which and because likely sepsis, to in often if really of the more I have is it's get yes, you as mentioned call, earnings XXx it's important final So the were cancer, cause

few was of is the get cost be the and thousand this. cancer very NETosis The their tremendously get actual they're dollars. give patients, fortunately, can warning It to because that, they're trial Unfortunately, them. up the for or but I time, It quickly that is to X or clinician for at a with to period working Obviously, not of trial. the data. that something something resolve hundred of you process if of expect and crossroads can the for obviously, things their -- and a think, wait itself idea years time. take with to have aware cancer. data. work, anything way in background It's It's beneficial will very can to but some It's tend So these actually on other, NETosis. and in often to one passionate hospital on about someone's short years. We the recover sepsis, so they die either we'd reasonably reasonably

we're cases in for we the million soft like MD process where be $X.X operations is something cancer MD first NEtosis NETosis expect throughout more other reasonable applications and with in amount where and I fantastic at Europe on of funding this we looking And of could use of the we'll organizations throughout start. for the we're with the And Anderson standing centered hope NETosis. it's the Europe to of Anderson So got sort a a trial. this for funding same data is working as the place world, many XX

I it's kicking So start happy be with with the off, MD really couldn't Anderson. and

the data. little we about the get a bit great. when That's at like discuss might look can then And interim just maybe first you

be That's determined. to

CE to to quickly because quickly. the starting our obviously I but is year, it it the see Europe, are they've it ready. it's quite reasonably can assay, I predict happen And of want not but in assays happen that It's it. said, is, would data which publicly I'm can same is wouldn't version As try are -- quite so I product next -- and quickly. recovered. exactly they The when expect Mark final

that be are on, next year, see and we'd I'll but excited it's expect very, data. we'll they when November update call the to But perhaps getting guess, first the better data will numbers So something we. with quite depend expect so very I'd share be data but an it in when us I quickly

possible. be would get So as I certainly quickly as trying it to

Okay. it question operating you've slightly Great. going vary just ticked could then my this assuming somewhat? quarter, got And expenses run rate Should the a the lot expense particular going during operating Terig up forward? for on. we for be profile Or on

observation. including good of over our It's when a or do some the full towards towards the good the started swing with rather up and DXO that's of to Yes. tick we have quarter because done. expect And we it year a next end more work will will question the QX being or probably projects, that be

we expect QX. over would probably particularly that tick up So to

I on obviously And that think just people asked. Bruce, thought quick also a that, some

the milestone reasonable raise. and of amount we from left, a payments. have We amount cash expecting a did large funding why do nondilutive coming some a small We've got also

bank, $XX more from to all to funding had we going on milestone the the -- the to is million we launches fantastic prudent get million the got in and between in the we the But our given shows product total, the also adaptability trials, it was money strengthen payments. and and and $X.X slightly our important to balance do. wise would think be million, these difficult sheet I $XX.X it combination, markets, the expect thing So in things just in non-dilutive think, was some and an I I think

All right. it all me. progress. on Congratulations Well, that's the for

Aegis next from with Our Nathan Capital. Weinstein question Instructions] comes [Operator

of that those potential with consist you of would additional related just us near to can and payments kind expect Could what you that we the perhaps Heska And trigger mid-term some payments? give milestones. start milestones more on color

take like that? Tom, to would you

stages even Heska, or anticipation validation is his that. do first we of million on Wilson, $XX early happy POC, still And recent final said XXXX. the most launch all, The come first of the we this Kevin will Yes, on to call of with of year product as million launched X on, are in are late Sure. and when that. next the based the actually of $X.X payments the

will using first for of during been which third the that to payment, And second million $X.X also during paper, the second submit on that for anticipate by progression treatment remission, will be our doing is When planning probably it collected and sometime of launch platform, would our Robles that payment and We're which year. Dr. a marker of talk is we're we're XXXX. all monitoring the are million both to and forthcoming based about we in second lot with those that the and Once application the on. in Those monitoring information. million quarter and be that of next to introduce peer coming of I this monitoring, quarter the And publication launch. So about disease published just year $XX published, we've pursue on is reference will we will be from. information payment first $X.X of the talking monitoring provided. the will ready then where planning the and be paper trigger the cohort we've review confident we submitting work

geographies, of little those give what can you to optionality on other And It sign maybe how That's we helpful. of just side. agreements. you vet the to et one still question us agreements other a Great. cetera, frame sign, have could that? about just insight you into types types very then Can follow-up think seems so like

to take that? Tom, do you want

okay, -- Well, that yes.

just take that. Tom, saying

do to want I Yes. that.

good. or test. clarity. reiteration with signed agreement point-of-care the so And Heska, When has something you we an the some exclusive Just have us on Nathan, with clarity Heska just that's

exclusive a cancer, well any connection strong currently our What's are to to us. a pretty lab U.S. that also have them, to test reference that reference formulate they have an us with they they also have groups. but international, that corporate using, with contacts reference reference So large and as lab. us with the with to is as corporate nonexclusive with We point-of-care both to other and due They nonexclusive EU. can reference on current are to market we later agreements the groups the reference allowing which in have with do

U.S. agreements. with the not other into also of question? but terms of other corporate distribution the gives Asia answer So EU eventually it and that flexibility a lot Does of potential help in in additional your in us parts only world,

Yes, helpful. that's very

to addition that, one Just Nathan.

point-of-care. on of So XX% or depending the XX% care, rule the is but the somewhere typically market a numbers, as thumb, point-of- of

organization mean, lion's care incredibly to vets companies, big sign or U.S. around share the XX% But with we XX% fantastic is coverage the I a X or we So our if do, and upon Heska's would more of the important. of and go point-of- that signing. in currently. expect to X

for So from lot as and also work lab Heska's potentially team the of done launch large vet excited. we're ready in companies The well. very very a has launching the getting one of perspective

coverage so single to we'll said of in run vet companies the going So we've I gives test, Tom cost the the think time those as massive us which the a I will the little able And money money the and by think process. test of being companies, is only the And signing whole also large XX% launch and do size And a be between very in of our outcome. of outstanding amount the $XX. U.S. and U.S., to run Heska the the is milestone the spent good an marketing, the well, be company launch is every get think, very we'll $X vets with about lab paid And having we ordered as $XX. done I will

So quite world. profitable we'll their be leveraging the us, massive to infrastructure and throughout

expect So few very those all the exciting and in next we quarters.

Great.

year. in the updates Looking forward later those to

Steven question from Ralston [Operator Instructions] Our with next comes Zacks.

on I'd It's and capital revenue. sorts as equity. it affects held by sheet that working like it that, doing that's the deferred the shareholder numbers, talk balance sort -- being of And Heska. you received about payment the to from

decisions look instead is And million that quant recognize you do the things made. and like this versus to have some an and make stopped investors at quant the to progression volition based asset expect liability? story make of of qualitative it $XX on side When a

question. Yes. Terig? Good

Yes, sure.

will to of until we're allowed standards cash. the be million This over is is to then $XX the accounting of is received it March. sales And the line That's the it's asset, bottom under payment. that product. launched. we've received is not We future non-refundable in and really a be recognize product clear, matter a just recognized the So the accounting standards there an

make each forward. $XX sold a we of that test sale, as gets be So going that allocated a portion million to will

of to much to be Are will test Do need you a recognize have you rule sold of how loaded? you'll thumb going per front-end defer it?

Yes. I'm that guidance this not at on providing point.

We the have next got better a a year. view forecast better view for on we've that on when

But updated that it's better once we'll next making we sometime a So we the go much started have model view year through. gets there's quarter each -- sales. something probably as that a

will Can we deferred become at the that million assume revenue? launch also $X.X

The the will monitoring $X.X for That's other and same. of million million payment be milestone $X.X right. treated the the test

something aware that working affects capital that your I And use? this you're see. quant dramatically number

it's cash. cash. extent, certain We the still received a to So

a that that "hidden" detrimental have, not quant people it only but but know. being some it's of also strong I It's look some it's numbers you at. very being asset sort is

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is looked course, to as once update And better like how the said, as get accelerate product next at angles we've into year to you able launched. be we'll Of that. we to various I

$X.X the also non-refundable? will be And million

Yes. Steve. Yes. Yes,

to Cameron, say did -- going you were something? you

to all as the yes, think, was it's possible. in reaction bank, as I I Steven, soon non-refundable. saying, obviously, the just natural record to is revenue try It's

We think risk take things if I to want going conservative. to a on. trying so things to be any come we've close with to, you got are we can didn't but edge much -- the you So want Obviously, the way. long accounting. push good We've but

conservative So reasonable we've a taken but view.

so that frustrating. And is

have was And decided that in advice the accounting that, us the that does decided we -- money issue, was we've But think affect it's just it's well. approach the we conservative you as given. I an quite take. to which already, we the mentioned way

is possible. sure kept it we've make just we it we wanted what of little a from point done. but to that's view, that frustrating So And as all as clean

that that Nu.Q My comment is Previously, just I'll mentioned Discover. second extremely had concerning X conservative. had it's you contracts. you question

is that X. number companies, signed mentioned but with the X You that also biopharma you

can signed second the the one I you that -- quarter? in contract assume So more

of couple a things on going there. there's Yes,

Sometimes level next we then and different a small sign a starter agreement for things.

might agreements for you different the So end with different organization, signing stages. a up same few

to So we process firm the we've interest, different said, I again, much it more on spend number but how yes, want and to effort and But depends -- pipeline guess very X. a things. to total But the be conservative, I some from and as we have said is got to inbound how they've and been of out lot the number more outreach them work for do. all the we've different strong this in on want we slightly much others. number, X, But

work at One? the done being is Silver And

That's correct.

time. the Cameron There are to to I no like closing further turn questions at would back floor this Mr. Reynolds for comments. over

a strategy made products. space and very the and and not progress in have institutions everyone, really And launches tell, in And your through, today made as we in can in you well. and our now, clear to and international getting balance capture strengthened were And in NETosis the lot Tom you, ways. much used talk course, as time. with strong Thank other areas, We've progress we did progress with a of I news I this vet of they great large other closer closer sheet several about wisely. what very went worldwide. from great appreciate think more We've but we've quarter important working U.S. European

very team Thank I'm our for time. the happy extremely taking interest And with you. exciting this at in extremely thank with progress. happy you and So all Volition

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