NEOGENOMICS INC

Previous wording

Results of Operations for the Three and Six Months Ended June 30, 2026 as Compared to the Three and Six Months Ended June 30, 2025

Current wording

Results of Operations for the Three and Nine Months Ended September 30, 2026 as Compared to the Three and Nine Months Ended September 30, 2025

Previous wording

The consolidated revenue for the three and six months ended June 30, 2026 and 2025, is as follows:

Current wording

The consolidated revenue for the three and nine months ended September 30, 2026 and 2025, is as follows:

Previous wording

Revenue for the three and six months ended June 30, 2026 increased $20.3 million or 11.2%, and increased $39.0 million or 11.2%, respectively, as compared to 2025. Changes in revenue primarily reflect an increase in test volume, and an increase in average unit price due to strategic reimbursement initiatives partially offset by lower non-clinical revenue due to macro clinical trial trends in the pharmaceutical industry.

Current wording

Revenue for the three and nine months ended September 30, 2026 increased $21.5 million or 11.4%, and increased $60.4 million or 11.2%, respectively, as compared to 2025. Changes in revenue primarily reflect an increase in test volume, and an increase in average unit price due to strategic reimbursement initiatives partially offset by lower non-clinical revenue due to macro clinical trial trends in the pharmaceutical industry.

Previous wording

The consolidated cost of revenue and gross profit metrics for the three and six months ended June 30, 2026 and 2025 are as follows:

Current wording

The consolidated cost of revenue and gross profit metrics for the three and nine months ended September 30, 2026 and 2025 are as follows:

Previous wording

(1) Cost of revenue for the three months ended June 30, 2026 includes $4.6 million of amortization of acquired intangible assets and $0.4 million of stock-based compensation. Cost of revenue for the three months ended June 30, 2025 includes $4.8 million of amortization of acquired intangible assets and $0.3 million of stock-based compensation. Cost of revenue for the six months ended June 30, 2026 includes $9.2 million of amortization of acquired intangible assets and $0.7 million of stock-based compensation. Cost of revenue for the six months ended June 30, 2025 includes $9.7 million of amortization of acquired intangible assets and $0.7 million of stock-based compensation.

Current wording

(1) Cost of revenue for the three months ended September 30, 2026 includes $4.6 million of amortization of acquired intangible assets and $0.4 million of stock-based compensation. Cost of revenue for the three months ended September 30, 2025 includes $4.6 million of amortization of acquired intangible assets and $0.3 million of stock-based compensation. Cost of revenue for the nine months ended September 30, 2026 includes $13.8 million of amortization of acquired intangible assets and $1.1 million of stock-based compensation. Cost of revenue for the nine months ended September 30, 2025 includes $14.3 million of amortization of acquired intangible assets and $1.1 million of stock-based compensation.

Previous wording

Consolidated cost of revenue increased 5.5% for the three months ended June 30, 2026 as compared to 2025. This increase was primarily due to $3.3 million in higher compensation and benefit costs, a $1.9 million increase in supplies expense, a $0.5 million increase in consulting fees, and a $0.5 million increase in postage and shipping costs partially offset by a $0.5 million decrease in depreciation expense.

Current wording

Consolidated cost of revenue increased 5.0% for the three months ended September 30, 2026 as compared to 2025. This increase was primarily due to $3.0 million in higher compensation and benefit costs, a $1.8 million increase in supplies expense, and a $0.2 million increase in consulting fees.

Previous wording

Consolidated cost of revenue increased 8.4% for thesix months ended June 30, 2026 as compared to 2025. This increase was primarily due to $8.3 million in higher compensation and benefit costs, a $7.2 million increase in supplies expense, a $1.1 million increase in consulting fees, and a $1.1 million increase in postage and shipping costs partially offset by a $1.2 million decrease in depreciation expense.

Current wording

Consolidated cost of revenue increased 7.2% for thenine months ended September 30, 2026 as compared to 2025. This increase was primarily due to $11.3 million in higher compensation and benefit costs, a $9.0 million increase in supplies expense, a $1.7 million increase in consulting and other professional fees, and a $1.2 million increase in postage and shipping costs, partially offset by a $1.1 million decrease in depreciation expense.

Previous wording

Gross profit margin for the three and six months ended June 30, 2026 was 45.6% and 44.5%, respectively, compared to 42.6% and 43.1% in the same period of 2025. For the three and six months ended June 30, 2026, the increase of 3.0% and increase of 1.4%, respectively, was primarily related to the increase in revenue offset by higher compensation and benefit costs and an increase in supplies expense.

Current wording

Gross profit margin for the three and nine months ended September 30, 2026 was 46.2% and 45.1%, respectively, compared to 42.8% and 43.0% in the same periods of 2025. For the three and nine months ended September 30, 2026, the increases of 3.4% of 2.1%, respectively, were primarily related to the increase in revenue offset by higher compensation and benefit costs and an increase in supplies expense.

Previous wording

General and administrative expenses decreased $8.1 million for the three months ended June 30, 2026, when compared to the same period in 2025. This decrease was partially due to a $4.1 million decrease in legal and other professional fees, a $2.3 million decrease in compensation and benefit costs, a $1.2 million benefit for reversal of an accrual related to the regulatory matter settlement, a $0.5 million decrease in transaction costs, and a decrease in facilities costs of $0.2 million. These decreases were partially offset by an increase of $0.2 million in recruiting expenses.

Current wording

General and administrative expenses decreased $2.8 million for the three months ended September 30, 2026, when compared to the same period in 2025. This decrease was primarily due to a $2.7 million decrease in legal and other professional fees, a $0.2 million decrease in facilities costs, a $0.1 million decrease in compensation and benefit costs, and a $0.1 million decrease in transaction costs. These decreases were partially offset by an increase of $0.5 million in software and technology expenses.

Previous wording

General and administrative expenses decreased $10.6 million for the six months ended June 30, 2026, when compared to the same period in 2025. This decrease was partially due to a $7.3 million decrease in legal and other professional fees, a $3.0 million decrease in compensation and benefit costs, and a $1.7 million decrease in transaction costs, and a $1.2 million benefit for reversal of an accrual related to the regulatory matter settlement. These decreases were partially offset by an increase of $1.5 million in software and technology expenses, an increase of $0.5 million in recruiting expenses, and an increase of $0.4 million in facilities-related expenses.

Current wording

General and administrative expenses decreased $13.4 million for the nine months ended September 30, 2026, when compared to the same period in 2025. This decrease was primarily due to a $10.0 million decrease in legal and other professional fees, a $3.2 million decrease in compensation and benefit costs, a $1.9 million decrease in transaction costs, and a $1.2 million benefit from the adjustment of the reserve for the regulatory matter to the final settlement amount. These decreases were partially offset by an increase of $2.0 million in software and technology expenses, an increase of $0.2 million in facilities-related expenses, as well as an increase of $0.3 million due to losses on the disposal of assets during the nine months ended September 30, 2025.

Previous wording

Research and development expenses increased $1.1 million for the six months ended June 30, 2026 when compared to the same period in 2025. This increase was primarily due to a $1.1 million increase in compensation and benefit costs, a $1.0 million increase in supplies expense, and a $0.2 million increase in legal and other professional fees. These increases were partially offset by a $0.9 million increase in U.K. research and development credits, a $0.2 million decrease in study fees, and a $0.2 million decrease in equipment maintenance fees.

Current wording

Research and development expenses increased $1.2 million for the three months ended September 30, 2026 when compared to the same period in 2025. This increase was primarily due to a $0.7 million increase in supplies expense, a $0.6 million increase in compensation and benefit costs, and a $0.5 million increase in professional fees. These increases were partially offset by a $0.3 million decrease in depreciation expense, a $0.3 million decrease in equipment costs, and a $0.2 million increase in U.K. research and development credits.

Previous wording

Research and development expenses increased $1.7 million for the three months ended June 30, 2026 when compared to the same period in 2025. This increase was primarily due to a $1.3 million increase in supplies expense, a $0.9 million increase in compensation and benefit costs, and a $0.4 million increase in legal and other professional fees. These increases were partially offset by a $0.9 million increase in U.K. research and development credits.

Current wording

Research and development expenses increased $2.3 million for the nine months ended September 30, 2026 when compared to the same period in 2025. This increase was primarily due to a $1.8 million increase in supplies expense, a $1.7 million increase in compensation and benefit costs, and a $0.7 million increase in consulting fees. These increases were partially offset by a $1.2 million increase in U.K. research and development credits, a $0.5 million decrease in equipment costs, and a $0.2 million decrease in depreciation expense.

Previous wording

Sales and marketing expenses increased $3.2 million for the three months ended June 30, 2026 when compared to the same period in 2025. This increase was primarily due to a $2.0 million increase in compensation and benefit costs due to the expansion of our sales force, an increase in legal and other professional fees of $0.9 million, and an increase in travel costs of $0.4 million.

Current wording

Sales and marketing expenses increased $5.8 million for the three months ended September 30, 2026 when compared to the same period in 2025. This increase was primarily due to a $2.9 million increase in compensation and benefit costs due to the expansion of our sales force, an increase in professional fees of $1.3 million, a $1.1 million increase in software and technology expenses, and an increase in travel costs of $0.3 million.

Previous wording

Sales and marketing expenses increased $4.3 million for the six months ended June 30, 2026 when compared to the same period in 2025. This increase was primarily due to a $2.5 million increase in compensation and benefit costs due to the expansion of our sales force, an increase in legal and other professional fees of $1.2 million, and an increase in travel costs of $0.3 million.

Current wording

Sales and marketing expenses increased $10.1 million for the nine months ended September 30, 2026 when compared to the same period in 2025. This increase was primarily due to a $5.4 million increase in compensation and benefit costs due to the expansion of our sales force, an increase in professional fees of $2.5 million, a $1.2 million increase in software and technology expenses, and an increase in travel costs of $0.6 million.

Previous wording

Consolidated impairment charges for the periods presented are as follows:

Current wording

Consolidated impairment charges for the three and nine months ended September 30, 2026 and 2025 is as follows:

Previous wording

Impairment charges decreased $20.0 million for each of the three and six months ended June 30, 2026, when compared to the same period in 2025. Impairment charges for the three and six months ended June 30, 2025, consisted of an $11.4 million impairment on InVisionFirst®-Lung intangible assets, an $8.2 million impairment on disposal groups held for sale, and a $0.4 million loss on InVisionFirst®-Lung inventory write-off.

Current wording

Impairment charges decreased $7.1 million and $27.1 million for the three and nine months ended September 30, 2026, respectively, when compared to the same periods in 2025. Impairment charges for the three months ended September 30, 2025, consisted of a $7.1 million impairment on disposal groups held for sale. Impairment charges for the nine months ended September 30, 2025, consisted of an $11.4 million impairment on InVisionFirst®-Lung intangible assets, $15.3 million impairment on disposal groups held for sale, and a $0.4 million loss on InVisionFirst®-Lung inventory write-off.

Previous wording

Interest income for the three and six months ended June 30, 2026 and 2025 is as follows:

Current wording

Interest income for the three and nine months ended September 30, 2026 and 2025 is as follows:

Previous wording

Interest income was $1.2 million and $2.5 million for the three and six months ended June 30, 2026, respectively, compared to income of $2.3 million and $6.0 million for the same periods in 2025, respectively. Interest income includes interest earned on funds held in our cash equivalent and marketable securities accounts. The decrease in interest income for the three and six months ended June 30, 2026 was primarily due to a reduction in the average balance of invested cash when compared to the same periods in 2025.

Current wording

Interest income was $1.2 million and $3.7 million for the three and nine months ended September 30, 2026, respectively, compared to income of $1.6 million and $7.5 million for the same periods in 2025, respectively. Interest income includes interest earned on funds held in our cash equivalent and marketable securities accounts. The decrease in interest income for the three and nine months ended September 30, 2026 was primarily due to a reduction in the average balance of invested cash when compared to the same periods in 2025.

Previous wording

Interest expense for the three and six months ended June 30, 2026 and 2025 is as follows:

Current wording

Interest expense for the three and nine months ended September 30, 2026 and 2025 is as follows:

Previous wording

Interest expense was $0.8 million and $1.4 million for the three and six months ended June 30, 2026, respectively, compared to expense of $0.9 million and $2.6 million for the same periods in 2025.

Current wording

Interest expense was $1.3 million and $2.6 million for the three and nine months ended September 30, 2026, respectively, compared to expense of $0.6 million and $3.2 million for the same periods in 2025.

Previous wording

Interest expense for the three and six months ended June 30, 2026 and 2025 primarily reflects the effective interest rates on the 2032 Convertible Notes and the 2028 Convertible Notes, which are 1.33% and 0.70%, respectively. Interest on the 2032 Convertible Notes and 2028 Convertible Notes began accruing upon issuance and is payable semi-annually. The decrease in interest expense for the three and six months ended June 30, 2026 was primarily attributable to the repayment of the 2025 Convertible Notes in May 2025 and the partial repurchase of the Company’s 2028 Convertible Notes during the second quarter of 2026, partially offset by interest expense recognized on the 2032 Convertible Notes issued in June 2026.

Current wording

Interest expense for the three and nine months ended September 30, 2026 and 2025 primarily reflects interest incurred on the Company's outstanding convertible notes. The effective interest rates on the 2032 Convertible Notes and the 2028 Convertible Notes are 1.33% and 0.70%, respectively. Interest on the 2032 Convertible Notes and 2028 Convertible Notes began accruing upon issuance and is payable semi-annually. The increase in interest expense for the three months ended September 30, 2026 was primarily attributable to interest expense on the 2032 Convertible Notes issued in June 2026. The decrease in interest expense for the nine months ended September 30, 2026 was primarily attributable to the repayment of the 2025 Convertible Notes in May 2025 and the partial repurchase of the 2028 Convertible Notes during the second quarter of 2026, partially offset by interest expense on the 2032 Convertible Notes.

Previous wording

The following table provides consolidated net loss for each period along with the computation of basic and diluted net loss per share for the three and six months ended June 30, 2026 and 2025 (in thousands, except net loss per share data):

Current wording

The following table provides consolidated net loss for each period along with the computation of basic and diluted net loss per share for the three and nine months ended September 30, 2026 and 2025 (in thousands, except net loss per share data):

Previous wording

In order to provide greater transparency regarding our operating performance, the financial results and financial guidance in this Quarterly Report on Form 10-Q refer to certain non-GAAP financial measures that involve adjustments to GAAP results. Non-GAAP financial measures exclude certain income and/or expense items that management believes are not directly attributable to the Company’s core operating results and/or certain items that are inconsistent in amounts and frequency, making it difficult to perform a meaningful evaluation of our current or past operating performance. Management believes that the presentation of operating results using non-GAAP financial measures provides useful supplemental information to investors by facilitating the analysis of the Company’s core test-level operating results across reporting periods. These non-GAAP financial measures may also assist investors in evaluating future prospects. Management also uses non-GAAP financial measures for financial and operational decision making, planning and forecasting purposes and to manage the business. These non-GAAP financial measures do not replace the presentation of financial information in accordance with U.S. GAAP financial results, should not be considered measures of liquidity, and are unlikely to be comparable to non-GAAP financial measures provided by other companies.

Current wording

In order to provide greater transparency regarding our operating performance, the financial results in this Quarterly Report on Form 10-Q refer to certain non-GAAP financial measures that involve adjustments to GAAP results. Non-GAAP financial measures exclude certain income and/or expense items that management believes are not directly attributable to the Company’s core operating results and/or certain items that are inconsistent in amounts and frequency, making it difficult to perform a meaningful evaluation of our current or past operating performance. Management believes that the presentation of operating results using non-GAAP financial measures provides useful supplemental information to investors by facilitating the analysis of the Company’s core test-level operating results across reporting periods. These non-GAAP financial measures may also assist investors in evaluating future prospects. Management also uses non-GAAP financial measures for financial and operational decision making, planning and forecasting purposes and to manage the business. These non-GAAP financial measures do not replace the presentation of financial information in accordance with U.S. GAAP financial results, should not be considered measures of liquidity, and are unlikely to be comparable to non-GAAP financial measures provided by other companies.

Previous wording

“Adjusted EBITDA” is defined by NeoGenomics as net (loss) income from continuing operations before: (i) interest income, (ii) interest expense, (iii) income tax (benefit) or expense, (iv) depreciation and amortization expense, (v) stock-based compensation expense, and, if applicable in a reporting period, (vi) leadership transition costs, (vii) acquisition and integration related expenses, (viii) impairment charges, (ix) intellectual property (“IP”) litigation costs, (x) gain on extinguishment of debt, (xi) adjustment to contingency for regulatory matter, and (xii) other significant or non-operating (income) or expenses, net.

Current wording

“Adjusted EBITDA” is defined by NeoGenomics as net (loss) income before: (i) interest income, (ii) interest expense, (iii) income tax (benefit) or expense, (iv) depreciation and amortization expense, (v) stock-based compensation expense, and, if applicable in a reporting period, (vi) leadership transition costs, (vii) acquisition and integration related expenses, (viii) impairment charges, (ix) intellectual property (“IP”) litigation costs, (x) gain on extinguishment of debt, (xi) adjustment to contingency for regulatory matter, and (xii) other significant or non-operating (income) or expenses, net.

Previous wording

The following is a reconciliation of GAAP net loss to Non-GAAP EBITDA and Adjusted EBITDA for the three and six months ended June 30, 2026 and 2025:

Current wording

The following is a reconciliation of GAAP net loss to Non-GAAP EBITDA and Adjusted EBITDA for the three and nine months ended September 30, 2026 and 2025:

Previous wording

(1) For the three and six months ended June 30, 2026, leadership transition costs include executive retention costs. For the three months ended June 30, 2025, leadership transition costs include executive retention costs. For the six months ended June 30, 2025, leadership transition costs include executive severance costs, executive retention costs, and executive search costs.

Current wording

(1) For the three and nine months ended September 30, 2026, leadership transition costs include executive severance and executive retention costs. For the three months ended September 30, 2025, leadership transition costs include executive retention costs. For the nine months ended September 30, 2025, leadership transition costs include executive severance costs, executive retention costs, and executive search costs.

Previous wording

(2)For the six months ended June 30, 2026, acquisition and integration related expenses include severance costs. There were no such costs for the three months ended June 30, 2026. For the three and six months ended June 30, 2025, acquisition and integration related expenses include consulting and legal fees, severance costs, and employee retention costs.

Current wording

(2)For the nine months ended September 30, 2026, acquisition and integration related expenses include severance costs. There were no such costs for the three months ended September 30, 2026. For the three and nine months ended September 30, 2025, acquisition and integration related expenses include consulting and legal fees, severance costs, and employee retention costs.

Previous wording

(3)For the three and six months ended June 30, 2025, impairment charges include losses from InVisionFirst®-Lung intangible asset impairment and inventory write-off, and impairment of disposal groups held for sale. There were no such costs for the for the three and six months ended June 30, 2026.

Current wording

(3)For the three months ended September 30, 2025, impairment charges include an impairment of a disposal group held for sale. For the nine months ended September 30, 2025, impairment charges include losses from InVisionFirst®-Lung intangible asset impairment and inventory write-off, and impairment of a disposal group held for sale. There were no such costs for the three and nine months ended September 30, 2026.

Previous wording

(4)For the three and six months ended June 30, 2026 and June 30, 2025, IP litigation costs include legal fees.

Current wording

(4)For the three and nine months ended September 30, 2026 and September 30, 2025, IP litigation costs include legal fees.

Previous wording

(5) For the three and six months ended June 30, 2026, other significant expenses, net, includes severance costs. There were no such costs for the three and six months ended June 30, 2025.

Current wording

(5) For the three and nine months ended September 30, 2026, other significant expenses, net, include severance and retention costs. There were no such costs for the three and nine months ended September 30, 2025.

Previous wording

The following table presents a summary of our consolidated cash flows for operating, investing and financing activities for the six months ended June 30, 2026 and 2025, as well as balances of cash and cash equivalents and working capital:

Current wording

The following table presents a summary of our consolidated cash flows for operating, investing and financing activities for the nine months ended September 30, 2026 and 2025, as well as balances of cash and cash equivalents and working capital:

Previous wording

Cash provided by operating activities during the six months ended June 30, 2026 was $11.8 million compared to $5.0 million in the same period in 2025. This $16.8 million increase in cash provided by operating activities was primarily driven by our operating results (net loss adjusted for depreciation, amortization of intangibles, gain on extinguishment of debt and other non-cash charges), which resulted in $17.5 million of higher cash provided in operating activities year-over-year. The increase in cash provided related to our operating activities was primarily driven by an improvement in gross profit of $22.2 million.

Current wording

Cash provided by operating activities during the nine months ended September 30, 2026 was $2.9 million compared to $3.9 million in the same period in 2025. This $1.0 million decrease in cash provided by operating activities was primarily driven by an increase in accounts receivable and the payment of the previously established reserve related to the regulatory matter described in Note 12 to the accompanying unaudited Condensed Consolidated Financial Statements, substantially offset by higher cash provided by our operating results (net loss adjusted for depreciation, amortization of intangibles, gain on extinguishment of debt and other non-cash charges), which was primarily driven by an improvement in gross profit. The increase in accounts receivable was primarily attributable to delays in the issuance of invoices in connection with our transition to a new billing platform, which is intended to improve collections through automated workflows and greater efficiency. We expect the impact of this transition on the timing of our collections to be temporary, and the increase did not reflect a change in our customer payment patterns.

Previous wording

During the six months ended June 30, 2026, cash used in investing activities was $13.3 million compared to $5.8 million in the same period in 2025. This change was primarily due to a $11.1 million decrease in proceeds from maturities of marketable securities, an increase in purchases of property and equipment of $2.4 million, and a $6.0 million decrease in cash used for the acquisition of Pathline.

Current wording

During the nine months ended September 30, 2026, cash used in investing activities was $25.2 million compared to $6.0 million in the same period in 2025. This change was primarily due to a $20.1 million decrease in proceeds from maturities of marketable securities. These decreases were partially offset by an increase in purchases of property and equipment of $5.9 million and a $6.5 million decrease in cash used for the acquisition of Pathline.

Previous wording

During the six months ended June 30, 2026, cash used in financing activities was $12.6 million compared to $201.5 million in the same period in 2025. The year-over-year decrease in cash used was primarily due to $201.3 million of repayments of the convertible senior notes due 2025 in the prior-year period.

Current wording

During the nine months ended September 30, 2026, cash provided in financing activities was $1.9 million compared to cash used in financing activities of $200.7 million in the same period in 2025. The year-over-year decrease in cash used was primarily due to $201.3 million of repayments of the convertible senior notes due 2025 in 2025.

Previous wording

For the the six months ended June 30, 2026, cash used in financing activities includes $305.7 million cash provided by the 2032 Convertible Note issuance, offset by $262.9 million cash used for the partial repayment of the 2028 Convertible Notes, $28.7 million in cash used for premiums paid on capped call confirmations, and $25.0 million in cash used to repurchase shares of common stock.

Current wording

For the nine months ended September 30, 2026, cash provided in financing activities includes approximately $306.3 million cash provided by the 2032 Convertible Note issuance, offset by $262.9 million cash used for the partial repayment of the 2028 Convertible Notes, $28.7 million in cash used for premiums paid on capped call confirmations, and $25.0 million in cash used to repurchase shares of common stock.

Previous wording

We had $145.5 million in unrestricted cash and cash equivalents as of June 30, 2026 to support current operational liquidity needs. We anticipate that the cash on hand and cash collections are sufficient to fund our near-term capital, and operating needs for at least the next 12 months. Operating needs include, but are not limited to, the planned costs to operate our business, including amounts required to fund working capital, capital expenditures, continued research and development efforts, and potential strategic acquisitions and investments.

Current wording

We had $139.3 million in unrestricted cash and cash equivalents as of September 30, 2026 to support current operational liquidity needs. We anticipate that the cash on hand and cash collections are sufficient to fund our near-term capital, and operating needs for at least the next 12 months. Operating needs include, but are not limited to, the planned costs to operate our business, including amounts required to fund working capital, capital expenditures, continued research and development efforts, and potential strategic acquisitions and investments.

Previous wording

We forecast capital expenditures in order to execute on our business plan and maintain growth; however, the actual amount and timing of such capital expenditures will ultimately be determined by the volume of business. We currently anticipate that our capital expenditures for the year ending December 31, 2026 will be in the range of $30.0 million to $35.0 million. During the six months ended June 30, 2026, we purchased, with cash, approximately $13.2 million of capital equipment, software and leasehold improvements. We have funded and plan to continue funding these capital expenditures with cash.

Current wording

We forecast capital expenditures in order to execute on our business plan and maintain growth; however, the actual amount and timing of such capital expenditures will ultimately be determined by the volume of business. We currently anticipate that our capital expenditures for the year ending December 31, 2026 will be in the range of approximately $35.0 million. During the nine months ended September 30, 2026, we purchased, with cash, approximately $25.0 million of capital equipment, software and leasehold improvements. We have funded and plan to continue funding these capital expenditures with cash.