Welcome everyone to the Bioanalytical System Second Quarter Results Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session. (Operator Instructions). As a reminder this conference is being recorded today Thursday May 15, 2014. I would now like to turn the conference over to Ms. Jackie Lemke, President, Chief Executive Officer and Chief Financial Officer. Please proceed.

Thank you operator and thank you all for joining us for BASi’s fiscal 2014 second quarter financial results conference call and webcast. Please note that various remarks we may make on this conference call about future expectations, plans and prospects for the company constitute forward-looking statements for the purposes of Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may vary materially from those indicated by these forward-looking statements as a result of various important factors including those discussed in the company’s filings with the Securities and Exchange Commission. The statements made on this call are made only as of the date of this call and the company assumes no obligation to update these statements. The trend is settling proving operating performance of BASi continued in second quarter. Revenue increased 14.7%, gross profit was up 59.9%, gross margin improved by 9.6 percentage points. Operating income increased by $105,000 and EBITDA increased to $504,000 compared to $497,000 last year. The improvement in our financial performance was incremental and are establishing a new $7,500,000 credit facility earlier this month was Huntington National Bank. The new facility consists of $5,500,000 term loan at loss of 325 basis points and $2 million revolving line of credit at LIBOR plus 300 basis points. The substantial more favorable terms and the in long term debt and line of credit replaces our new credit facility, lowers the excise borrowing costs significantly and enhances our ability to implement our growth plan. These tangible benefits obviously are important to us but in addition I think our new credit facility is stronger and confidence in BASi’s future and we are pleased that The Huntington National Bank has recognized our progress. To the three months ended March 31, 2014 revenue increased 14.7% to $5,912,000, this compared…

Thank you. (Operator Instructions). And your first question comes from [Lenny Dunn with Freedom Investors Corporation]. Please proceed.

Good morning, Jackie.

Hi, Lenny

First, a comment, I am very happy to see that we have finally straightened out our finances or say you have. And we no longer have this sort of (inaudible) coming up every September 30 and at reasonably favorable rates which accounts too. What do you project the actual interest cost savings will be, not on the line of credit so much but under the fix part?

Yes, if I look at fiscal year 2013, our interest expense is about $650,000. If I just take the next 12 months, I think our interest expense will be less than $300,000. So the impact is…

[30,000]?

Yes.

Yes. That will effectively help the bottom line. Now second though we’re increasing sales, we clearly aren’t increasing the rate that we’d like. Do you think that we’ll start seeing better sales increases in the second half of the year?

Yes, I think some. We expect to increase sales in the second half of the year.

Okay. So the new sales people are starting to finally workout, I realize there is a long lead time, but are you -- would you characterize the staff as currently assembled as the staff you want then?

Yes, they are becoming effective in getting leads and getting into people who are interested and it just takes several months to develop the clients now to what we can do for them and that’s what we are working on.

Okay. And have you made any progress on replacing the [movement] around the lab or is that still a work in progress?

No, I will be announcing in the next few weeks someone to come in as our Vice President of Bioanalytical. He is accepted and I just need to get some of the paper work in order and we’ll make an announcement.

Okay, great. Because I know you are looking for somebody that would actually bring some business to the table.

Yes.

Yes. So that is very good news. And then my final question is about the warrants, I know we exercised some of our warrants in April, which were just showed up under March 31 balance sheet. Were there other people in April that exercised or is it going to be fairly static as what we know we exercise?

No, I don’t think we saw so many exercises in April, no. So right now, as of the end of March, we had about 60% of the warrants unexercised, still outstanding, about $810,000.

Okay. That always makes the earnings announcement more confusing than it should be…

I know.

Owning is the way it is, because it really has no effect on anything. But any how the balance sheet looks good, even though the cash has decreased because you used the cash effectively. So, it looks like we're in very good shape going forward and ready to start leveraging it up.

Yes.

Okay. Well, thank you very much.

Thanks Lenny.

And your next question comes from Ethan Stark; please proceed Ethan.

Good morning and congratulations on a nice quarter.

Thank you.

I was wondering, the press release statements you have upgrade in executive leadership, could you expand on that please?

We mentioned, yes the executive yes. We did retire senior director for the pharmaceutical analysis business, he started in January, PHD very effective already he began to test some programs. And as I just mentioned we are hiring vice president for Bioanalytical. And those were two key leadership roles that we just wanted to get people who are more looking towards potential growth opportunities bringing in some of their contacts, some of their relationships.

Okay, great. And how will be increased selling in R&D expenses pay-off down the road, do you see that -- and what's the beat time, it could be a long time before you see results, but just curious about that?

Right. Well, I think we are seeing results on the business development side and we are -- from the selling, the general side we have more engineers currently in the company helping us to design next generations of our instruments. So I think you're going to see a pay-off in the next 18 months to two years.

Okay. Sounds good, looking forward to future quarters.

Okay. Thank you.

And there are no more questions in the queue at this time ma'am.

Okay. Well, thank you operator and thank you everybody for joining and for speaking with me about our second quarter conference call. We look forward to speaking with you on our fiscal 2014 third quarter call in the next three months. Thank you very much.

Ladies and gentlemen that concludes the presentation for today's conference. You may now all disconnect. And have a wonderful day.