Now it's morning. He declines any painkilling drugs from the ambulance. Watson arrives and confirms that she did, in fact, recognize that the text wasn't in Holmes's writing. And then the police located the phone easily, because unlike The Event, this is a show that knows something about cell phones. Holmes smugly lists the steps that led Watson to this place until she snaps, "I'm sorry, are you trying to take credit for the fact that I saved your life?" Holmes retracts his claims a little and admits, "Your deductive skills are not unworthy of further development." She tells him that she told Gregson he was an addict, so he might want to go have a talk with him.
Gregson's office. Holmes enters. Gregson: "We have something to talk about?" Holmes says there are many specious reasons he didn't tell Gregson about his history. The real reason is that he was embarrassed. He stammers as he admits he's more vain that he's like to admit. "And I'm sorry. Because you deserve to know." Gregson says he did know. He obviously researches his consultants. And that "personal valet" line about Watson was stupid, so he researched her too. He tested Holmes by asking him out for a drink. "Was I happy that you didn't tell me? No. But your work hasn't slipped one bit since Scotland Yard." He won't be spreading it around, though. So that's all taken care of, then.
Brownstone. Holmes is at the table, practicing picking the lock of handcuffs behind his back. That's probably a good idea! Watson gets a text that Aaron is blowing her off for Emily's party. Holmes says Aaron probably finds Watson's analytical skills threatening. He warns her that once you start looking for puzzles, they're everywhere. Watson: "Seems like a lonely way to live." Holmes: "As I said. Has its costs." Watson leaves as Holmes unlocks the cuffs.