Q1 2021 Brainsway Ltd Earnings Call
[music].
Greetings and welcome to the Brain's way first quarter 2021 earnings conference call.
At this time all participants are in a listen only mode.
Question and answer session will follow the formal presentation.
If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.
Binder. This conference is being recorded it is now my pleasure to introduce Bob yet of lifestyle advisors. Thank you you may begin.
Thank you Daryl and thank you all and welcome to <unk> first quarter 2021 earnings Conference call.
With us today are <unk>, President and Chief Executive Officer, Christopher von JAKO, and the Newsfeed, Chief Financial Officer, Scott a wriggle auto.
The format for today's call will be a discussion of the first quarter trends and business updates from Chris followed by a detailed discussion of the financials from Scott.
Then we'll open up the call for your questions earlier.
Earlier. This morning, <unk> released results for the first quarter ended March 31.2021.
Going to press releases available on the company's Investor Relations website.
Before I turn the call over to Kristin Scott I'd like to remind you that this conference call, including both management's prepared remarks, and the question and answer session may contain projections or other forward looking statements regarding future events or future performance of <unk>.
Including but not limited to any statements relating to commercial plans or activities.
Financial projections.
Clinical studies R&D plans <unk> timelines. These statements are only predictions and brands weighted cannot guarantee that they will in fact occur range does not assume any obligation to update that information.
<unk> are cautioned that all forward looking statements involve risks and uncertainties such as reliance on third parties and shifting market conditions, particularly due to the COVID-19, pandemic, which may cause actual results to differ from those anticipated by <unk> at this time.
Additional risks concerning factors.
That could cause actual results actual events.
Results or achievements to materially differ from those contained in the forward looking statements can be found in the company's registration statement on form 20-F, and other filings with Securities and Exchange Commission.
With those remarks, it's my pleasure to turn the call over to the CEO, Chris von JAKO Chris.
Thank you Bob and welcome everyone and thank you for joining US today, we are extremely pleased with the current operating trends in our business and I expect some of our recent achievements should drive further growth in our business I will discuss all of this further shortly but first I will provide a brief overview of our key first quarter financial.
Results.
We achieved $6.1 billion in revenue from the first quarter of 2021, which represented a significant 47% increase over our first quarter of 2020, demonstrating the resiliency of our business. Following the impacts of the COVID-19 pandemic importantly, we believe that the momentum we.
<unk> generating in our business late last year, which continued into our first quarter of 2021 is expected to be sustained throughout the year.
Key to the current and continued strong performance of our business is that the operating environment has improved.
A trend that we expect to further progress.
As additional stability returns to the marketplace in everyday life.
Has that been sort of this patient treatments with deep Tms have continued to increase since the first since the fourth quarter.
We'd like to highlight that we recently completed the 100000 patient treatment with deep Tms.
Which we view as a major milestone and a testament to the innovative non invasive mental health technologies, we have developed.
Looking ahead with approximately 40% of the U S population currently fully vaccinated and another 10% that have received at least 1 dose of the vaccine. We anticipate that these positive patient trends will continue.
Moreover, mental health issues continue to rise dramatically as we emerge from COVID-19.
In fact, a recent study published in the Lancet psychiatry indicated that 34% of about 235000, primarily U S patient studied to separate and recover from COVID-19 were diagnosed with a brain or psychiatric disorder within 6 months.
Over 100 million people that have recovered from COVID-19 worldwide and with the United States ranking first about nations. The number of cases. It is cause for concern that we may face a secondary epidemic of mental illness.
In a separate recent study of about 4000 recovered COVID-19 patients published in the Journal of American Medical Association over 52% met the criteria for symptoms for major depressive disorder.
Of course. These studies do not include individuals with mental health issues, who may not have necessarily been diagnosed with COVID-19.
But nonetheless suffer from the ill effects of isolation lack of support from family friends and colleagues and other impacts from COVID-19 to their daily lives over the last 15 months the <unk>.
<unk> had a mental health, especially in light of COVID-19 has taken on a greater sense of urgency.
As such we continue to ramp up our patient awareness initiatives too.
To highlight May is mental health awareness month, we were honored to ring. The NASDAQ closing Bell earlier. This month, we also launched a robust social media Influencer campaign around mental health awareness.
In addition, we received it.
We recently initiated a significant patient awareness campaign with the goal of reaching any patient seeking alternative to medical management of their mental health.
We also continue to expand our efforts to educate prospective patients on the benefits of brands with deep Tms.
This includes for example content on our new website clearly explains the important differences between deep Tms and traditional Tms.
As well as our hosting of numerous well attended Webinars, including 10 in the first quarter alone aimed at informing patients and providers alike about the benefit of brains ways unique approach to mental health treatment.
In a continuation of recent trends we are pleased to report that our organic website traffic has again increased significantly up over 33% from Q4.2020 to Q1.2021.
I would now like to turn should be in the deep Tim asks for the treatment of OCD.
As well as our continued efforts to obtain reimbursement in this key indications.
As of the end of the first quarter, we had shipped 225 OCD coils as add on helmets to certain of our brands with new and existing systems. As a reminder, we fully launched this innovative treatment in the first quarter of 2019 and already about 1 third of our total installed base have opted to offer our OCD.
Debt, which is a clear cut reflection that our customers strongly believe and the benefit of deep Tms OCD.
We note that a number of these providers have been requesting coverage from health care plans for specific OCD patients.
And are also now advocating coverage for deep Tms generally for this indication.
During the first quarter, we dramatically improve both our depression in OCD resources, including features on our website and customer portal to guide our providers and navigating the sometimes complex coverage landscape.
We also continued to reach out to payers, new clinical evidence, including 8 additional studies published in 2020 highlighted by a real world evidence study that analyzed 219 patients from 'twenty 2 medical centers to support deep Tms treatment for patients with OCD.
During the first quarter, we held 30 meetings, including with all 7 Medicare administrative contractors and 6 large commercial payers during.
During these meetings many of which include a behavioral health medical directors, we presented our deep Tms OCD clinical evidence.
As well as information on appropriate patient selection criteria proper placement of deep Tms within the treatment continuum and associated health economics.
We continue to reach out to additional commercial payers to present this information.
I would add that the clinical Tms Society, a leading Tms Medical Association recently published its 2021 recommended OCD coverage policy with guidance on patient selection criteria and treatment protocols, which we also shared with payers to demonstrate the medical society support.
Based on this collective work, we are awaiting current evidence reviews and coverage policy decisions from multiple payers.
With that I would now like to highlight 2 recent achievements that have been have the potential to drive meaningful further growth in our business.
First we recently successfully initiated our controlled market release of deep Tms for smoking addiction.
New commercial offering the first of its kind was distributed to 10 customers. The initial patients that these sites had been treated or still undergoing treatment and we have received excellent feedback from our customers in regard to the impact of therapy is having on their patients.
As previously discussed we received FDA clearance based on the data from our double blind Multicenter trial with 262 to smokers.
These smokers were highly addicted to cigarettes with a long history of smoking and was 70% of them having failed 3 or more attempts to quit.
Of the participants who received a full course of deep Tms treatment, 28% achieved 4 consecutive weeks of abstinence from smoking.
We have a significant opportunity to leverage this large target market with 34 million adult smokers in the U S. Over time, we expect that deep Tms with smoking addiction.
Could have a significant impact on our business and we look forward to providing you with further updates on this exciting commercial launch over the coming months.
We were also pleased to have recently received FDA clearance for our phase 3 minute protocol utilizing that deep Tms system for depression.
This new FDA cleared protocol, which is immediately available on our on our systems provides patients with shorter duration of treatment option to manage their depression.
The availability of a shorter treatment protocol has the potential to expand access to care by providing clinicians with added flexibility in selecting courses of treatment that may be better for certain patients.
In support of our successful application to the FDA Brain's way 70 clearance to date, we submitted its safety and efficacy data from 146 subjects, who had received either the standard deep Tms protocol are fated burst deep Tms protocol.
Subjects in both groups demonstrated a statistically and clinically meaningful reduction in depression scores.
Switching gears, our recent equity raise which generated over $45.2 million of gross proceeds favorably positions the company to invest more aggressively to increase the revenue growth rate and shareholder value.
Previously mentioned, we are continuing to expand our sales coverage as well as accelerate our marketing and reimbursement initiatives.
Finally, we're extremely proud of our R&D and clinical leadership position in the non invasive neurostimulation space and we will continue to invest to maintain this position.
Turning to Investor Relations, we remain dedicated to sharing brands with compelling growth story with both institutional and retail investors.
In the first quarter, both during and following our recent successfully completed equity offering we met with a number of high quality health care focused U S based institutional investors.
We also presented at the annual Oppenheimer Healthcare conference as well as held meetings with a number of high net worth retail investors.
We will be presenting at a number of additional health care investment conferences. During the remainder of 2021 and later this year, we intend to host a KOL event for investors and analysts similar to the meeting we held last November.
I would like to take the opportunity now to welcome Scott to the <unk> team he joined US as senior Vice President and CFO earlier this month <unk>.
It brings more than 25 years of leadership experience across finance and accounting positions within the high Tech medical device industry.
Most recently he was the CFO of Ikat, a NASDAQ listed global Med Tech company that focuses on early detection and treatment of cancer.
We are thrilled to have Scott on the <unk> team as he has extraordinary qualified to assist in our mission of boldly advancing neuroscience to improve health and transform lives I look forward to his interactions with many of you over the coming weeks.
Finally, as always I'd like to express my gratitude to our hard working customers on the front line of this mental health crisis and to the entire brands team for their continued support and dedication to our mission.
His extraordinary efforts by our customers and employees continued to generate significant achievements for <unk> positioning us well to leverage that many key catalysts ahead of us.
Thank you again for joining us today with that I will now pass the call to Scott for his review on our first quarter 2021 financial results Scott.
Thank you Chris I'm pleased to be joining my first brings way, earning call and I'm thrilled to be a part of dynamic growing company.
Now I'll jump right in with a discussion of our financial results.
For the first quarter of 2021, we generated revenue of $6.1 million, a 47% increase compared to the first quarter 2020 revenue up $4.2 million. This year over year revenue growth was driven by the increase in our direct sales.
Our recurring revenues, primarily derived from leases were $3.5 million consistent with the first quarter of 2020. These.
These lease revenues represented 56% of our total revenue, which underscores the recurring nature and predictability of brain waves growing revenues.
As of March 31, 2021, bringing suites installed base totaled 652, deep Tms systems, which reflects a quarter over quarter increase of 23 systems and 19% growth year over year.
Gross profit for the first quarter of 2021 was $4.6 million compared to $3.1 million during the prior year period.
Gross margin for the quarter was 75% as compared to 76% in the first quarter of 2020.
Moving on to operating expenses for the first quarter of 2021 research and development expenses were $1.2 million as compared to $1.8 million in the first quarter of 2020, and primarily consisted of costs associated with the continued development of our patented deep Tms technology.
SG&A expenses for the first quarter of 2021 were $3.6 million compared to $3.7 million for the first quarter of 2020.
Total operating expenses were $6.8 million from both the first quarter of 2021 and 2020 it is important.
To note that operating expenses for the first quarter of 2021 included a 1 time non cash charge of approximately $2 million for stock compensation expense, which was related to the repricing of options in the first quarter of 2021.
Absent this onetime charge operating expenses would have been approximately $4.8 million for the first quarter of 2021.
Going forward, we expect to invest in initiatives to drive commercial adoption of our primary indications in major depressive disorder and OCD.
As well as further clinical evidence for our smoking addiction indication.
Operating loss for the first quarter was $2.2 million compared with a loss of $3.6 million from the same period in 2020.
For the first quarter ended 2021, we incurred a net loss of $2.7 million.
Compared to a net loss of $3.4 million in the first quarter of 2020, a year over year improvement of $1 million.
Again, the net loss in 2021, including the 2 million stock compensation charge that I just referenced.
Moving on to the balance sheet, we ended the quarter with cash cash equivalents and short term deposits of <unk>.
$58.5 million.
<unk> to $17.2 million as of December 31, 2020.
The significantly increased cash position reflects the completion of the company's public offering which was closed in March 2021, and generated gross proceeds of approximately $45.2 million.
We believe that our strong balance sheet allows us to expand our sales and marketing efforts to drive additional adoption of our deep Tms system to.
To continue to invest in R&D in order to explore new potential indications for our differentiated innovative technology.
As Chris mentioned, we believe these initiatives and investments will help drive top line growth and improve the company's strategic position.
This concludes our prepared remarks, and I'll now ask the operator to open up the call for questions operator.
Thank you we will now be conducting a question and answer session.
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1 moment, please while we poll for your questions.
Our first question comes from the line of Steven Lichtman with Oppenheimer. Please proceed with your questions.
Thank you and good morning, guys.
You mentioned some of the digital marketing activities in 1 Q I was wondering could you talk about what other sales and marketing initiatives. We should look for from from you guys now with reported by balance sheet.
Including maybe where you are in terms of sales force expansion.
Yeah sure. Thanks, Steve I'll take the sales force expansion first so I think.
As we May have mentioned last call we ended with 13.
<unk> sales professionals at the end of last year.
And our goal is to get up to 18 that short term price.
We have 14, I think as <unk> mentioned on the last call.
Our plan was to get up to.
18 by the end of the third.
Third quarter.
As far as.
Other marketing initiatives that we're doing we're doing quite a bit and our real focus is on.
Pushing towards.
The digital marketing campaigns around patient and patient awareness.
And as I mentioned in the prepared remarks.
We are doing quite a bit and this month, we actually launched the largest campaign on direct to consumer.
Around deep Tms highlight.
Highlighting obviously mental health awareness month.
Okay, great great.
Also if you could.
Tens of any feedback from the sales force from the addition of data burst any early comments on how that has impacted commercial interactions with.
With customers.
Yeah I think.
The initial indications from our sales force was extremely positive.
And as I mentioned in the prepared remarks, I think also in our press release that is immediately available to our customers.
And just taking a first look I think that our current customers roughly around 30% from maybe a little bit more have already started taking utilization of the fate of gross protocol.
So it was pretty good excitement around it.
And we're looking to continue to leverage that.
Great.
And then maybe lastly, you mentioned a lot of activity.
In the first quarter.
Payers.
Wondering if you could sort of characterize the meetings generally any surprises and just how youre feeling overall.
Coming out of those meetings.
Yes, that's a great question, thanks for asking.
I think 1 of the biggest things that we that we have in Liza countered with the payers is really going through our evidence and describing the difference in our clinical data.
Paired to traditional Tms.
That is sort of <unk>.
The waters for us to a certain extent.
Because I think the payers just felt.
All Tms technology is the same.
So we've had to really educate them on the difference of the technology.
And also the benefits of our technology, because they were looking at OCD fatality with all Tms and so we've had to do a much better job of educating the payers.
I think that was really the biggest hurdle for us going into it and sort of an eye opening for us, but I would say beyond that it's been it's been really positive again, it's really hard to characterize where it's going to go but as I mentioned I think on the last call I was I've been pretty positive about the responses.
As far.
Great. Thanks, so much I'll come back in queue. Thanks.
Thanks, Steve.
Thank you. Our next question comes from the line of Jeffrey Cohen with Ladenburg Thalmann. Please proceed with your question.
Alright, Christian Scott how are you.
Hi, Hi, Jeff Great, Jeff. Thanks tours are willing to ask.
So first some compression from.
Are you seeing increasing utilization as far as an inflection.
<unk> et cetera, what do you see coming from firmly under charters in formulary and I guess, what is the psychiatry market, saying what are you hearing from docs.
Yes, so we definitely saw the increase.
From Q4 to Q1 I think those are all positive is obviously were continuing to exit COVID-19 and.
I think we will see.
We will continue to see increase as the year goes along as you know and I think we've mentioned on previous calls just sort of the effects of COVID-19 and the patient from the effects of those patients we may not see them jumping into the to the freights are probably <unk> of this year and then going also into 2022.
Because it.
<unk> of the <unk>.
The reimbursement companies are still at 4.
<unk> medications that are needed even though there has been a trend going reported too so to come up and down.
For medications Youre talking about at least a year minimum if not 2 years.
And I think yeah.
So does that answer your question Jeff.
That's helpful.
Secondly, could you talk about growth that you have your hands full with 3 large indications, but could you talk a little bit about some of the studies or any progress.
Parkinson's.
<unk> nerve degeneration.
So autoimmune thanks.
Okay, great. Thanks, Thanks for that question, Jeff So.
We have obviously Korea cleared indications here in the United States Depression, OCD and smoking addiction, which we've talked about in Europe, we have enough a number of other indications that are that are cleared.
You mentioned Parkinson's disease. We also had some other neurologic disease that we have there as well I think as I mentioned on our last call. We are looking to start.
At least 1.
Clinical trial later this year a pivotal trial later this year.
And 1 of those probably be in the neurological area specifically.
MFS, which I think I mentioned in the last call.
Okay. Thanks for taking my questions moving through to unappreciated.
Thanks, Jeff.
Thank you our next questions come from the line of Kyle <unk> with Cantor Fitzgerald. Please proceed with your questions.
Hi, guys. Thanks for taking the questions.
Welcome good to hear your voice again, yes.
Yes, I think a low question on on the.
Of course that was a question on the revenue beat our estimate with above street expectations by gross margin, it's actually closer to the <unk> estimates. So I'm just wondering if there was any like 1 time or nonrecurring items, you can kind of call out I'm thinking like delayed orders from 2020 or maybe some multi system orders as well I'm just trying to understand that took $2.1 billion.
A number that could be like a run rate going forward. Thank you.
So so Kyle thanks for the question.
No.
We were excited to actually obviously, our direct sales came in probably a little bit higher than we expected, but again, if we have 1 or 2 direct sales thats going to hit the number higher so at night I don't know if it actually trickled over from Q4 or not obviously you saw we had a really great close to Q4.
But again, 1 time sale of direct sale, Kimberly tipped us in 1 direction or the other.
Alright got it makes sense and kind of what kind of a similar similar note.
Most of the coil is came in lower than they were a year ago to buy just a better actually kind of looking at the same level.
Anything you can kind of share there why that could have been little bit weaker or could that cause that kind of pick back up as you go along here I know there is a seasonality, but wondering if there's anything you could share there are federal reimbursement kind of more of a headwind than you were expecting.
Yes so.
When it comes to OCD not every clinic that we end up selling actually takes an LCD or they may not be focused on OCD in that clinical practice as well.
So.
I think it's usually less than 50.50.
In some case and then.
Some of our business is to existing customers and existing customers expanding and they already have an LCD coil that may not require 1 at this time and again I think obviously.
We're pretty proud of what we have already 1 third of the installed base.
Moving the OCD coil and Thats, even again without reimbursement and we know as we continue as we continue on our path to gain reimbursement, we know that those numbers will change.
Alright, that's fair, Chris and Chris actually mentioned this in the last the prior question.
The European litigation. So recently, we saw that Mike venture secured some CE mark approvals for indications like addiction, OCD depression with anxiety.
Could you talk about the.
The competitive positioning of <unk> in Europe, and how you kind of see that evolving over the next couple of years.
It's pretty important market for you and it grew top.
Top line over 30% last year, So would love to hear your thoughts.
Yeah again, our focus has really been on the U S. The U S. Commercial market, we are looking at the international business.
As a growth opportunity, but right now we're still I would say opportunistic.
In Europe around what we do in <unk>.
Rest of international but I think there are unique opportunities that we leverage I mean, you mentioned, we had greater than 30% sales last year.
<unk>, which was which is quite nice and.
I think we can continue to leverage some of those.
As far as the indications again, we have a wide broad range of indications in Europe already including addiction.
Treatments and things like that I think Jeff asked about Parkinson's earlier.
So I think that helps us internationally.
But where we have challenges internationally, it's more around reimbursement our focus has been primarily internationally in Japan and Japan. As you know we have clearance there, but we've been waiting on reimbursement in Japan, and Covid has really set us back there but.
But we're looking at as we exit Covid.
2 hopefully that we will get reimbursement in Japan, and we can start our commercial launch there and have an active.
Active focus on that.
Okay makes sense. Thanks, Chris if I can just squeeze 1 last 1 from here.
It's very early in the smoking rollout, but have you begun any of the reimbursement work for that indication and I guess, if not which is probably.
Likely.
What is that process really going to be like is that going to be kind of revolved around generating some clinical data. This year I think I think you mentioned that in your remarks.
Are you talking about smoking or sorry.
Yes spoken condition.
Yes.
Yes, so as part of our controlled market release as I mentioned, we have 10 sites now that are up and solve we've put a pretty robust tracking system in there to gain post marketing data and we'll be using that obviously that post marketing data and trying to understand the reimbursement landscape a little bit different.
With smoking, then obviously for compression or OCD, and we're continuing to explore that but it is really paramount for us to ensure that we're collecting that post marketing data and we've set up a really robust system.
Does an amazing job, thus far and we're collecting that.
That makes sense alright, thanks, congrats on the quarter.
Thanks, Kyle appreciate it.
Thank you. Our next question will come from the line of Jason weighted with Northland Capital markets. Please proceed with your questions.
Hi, Thanks for taking questions just to follow up maybe on smoking cessation, obviously, it's going to take a while to see the waters on reimbursement from the payers, but do you also anticipate there could be a large out of pocket market for this as well.
Jason Thanks, Thanks for the question.
That's a very.
Thing and Thats 1 of the things that we're testing in a controlled market release with 10 systems that we've already installed we planned out to install it for more systems. Those are specifically the things that we're looking at how cash bay can be a little bit more robust we know with OCD is difficult on the cash base side, but there are some advantages I think we.
Could take with smokers in general if they really wanted to quit it also it's less treatments right. So about half the number of treatments that you would do first day OCD. So the cost will be a little bit less but I think.
To date, we've probably done about a dozen maybe a dozen patients at those 10 systems at those 10 sites.
And.
And we have some good anecdotal data about how the treatments are going in and there is some excitement there and we're continuing to learn about it as we kind of expand out and refine our marketing message around it.
Okay, great and related to that.
It also seems like it would be pretty.
<unk>.
Susceptible or I guess, what are your word for it too.
OTC marketing, it's kind of a.
A unique approach there's quite a few.
There's quite a lot of desperate smokers out there, but there's also quite a few.
Options.
Obviously, a lot of them don't work.
In this rollout are you also.
Porting with some OTC, either local or just our internet or could you explain kind of your thinking there.
In terms of how the OTC drive might might shape up.
Yes, so great question.
So obviously as part of our big launch this year with the direct to consumer market.
Have done as part of our controlled market release, we're also doing.
Digital.
Marketing around smoking as well to kind of test what really the what.
What kind of responses will be due.
Or would they be working so we've been working with several of our customers around that as well and again that's to get to hone in our messaging.
Okay, and then I might have just missed this in the release, but did you break out the lease versus sale.
On break out on the revenues and related to that.
Do you think Covid is still impact.
It still is having any impact on the <unk>.
The direct sales piece.
Of the revenue.
So.
Scott So our lease revenue was about 56% of the mix this quarter.
I do think there's still.
Some COVID-19 lingering COVID-19 impacts from the end of the year and into the first quarter on our business and as Chris mentioned in his comments, we see positive trends about that starting to.
Relief.
Okay and then.
Also just again, maybe in terms of how youre thinking.
You just had a successful raise you have a bit of a war chest now.
Youre going to 13% to 18, which is certainly a decent increase.
In terms of sales sales reps still put you behind some of the some of your competitors. So I guess the question is.
When you talk about ramping up on revenue excuse me on expenses. It sounds like a large percentage of that is going to be for DTC type Internet type advertising is that am I thinking about this right.
I'd be curious to know kind of how you think the best way to attack this market censored.
Yes.
Yes, it's a good point I think it's a 2 pronged approach here right we have to just create awareness.
I think thats the biggest driver for us.
And then we're going to put feet on the street, we have planned to go to 18 and I would expect it.
As those ramp up we will look opportunistically, where the other territories could be in and potentially ad sales.
Salary, but at least our plans are only go to 18 right now, but I personally I think just coming in here awareness is a huge driver and everything we can do to create patient awareness and all of these geographies is going to help pull through for us to help our sales team.
Okay, great. Thanks, I'll jump back in queue.
Thanks, Jason.
Thank you. Our next question comes from the line of Jayson Bedford with Raymond James. Please proceed with your question.
Yes.
Hi, guys. This is <unk> on for Jayson Bedford.
Wanted to ask about.
Trends exiting the quarter and what the trends look like for the rest of the first half and for the year now that COVID-19 seems to be less of an issue.
Yes, very good question.
I think of it as I remember.
Remarking on last quarter.
We would expect the trends to continue to get get improvement in.
Our initial thoughts are obviously as we go into the second half of the year is going to continue to expand though.
Pretty positive.
Theme and I think overall.
Just.
Talking to the sales force.
And getting their feedback.
We're getting more face to face meetings, which I think is quite exciting.
Great. Thank you and then if you guys could elaborate on the 3 minute protocol a little bit more does this protocol require new piece of hardware and also in terms of like why what type of patients that the shorter protocol it suited for it but the standard protocol.
More detail on.
What the potential patient population.
It could be different than what the standard protocol would be great.
Yes, thanks for that question.
So.
Our system, our latest and greatest system was actually built with this in mind so.
It is the I would say most powerful stimulator on the market for any Tms company that's out there.
<unk> is in fact immediately available to all of our customers. There's nothing that's needed at all it is ready to roll.
Our customers have been like I said.
They had earlier I said, roughly about 30% or greater of our customer have already started utilizing this again it's more.
I would say, it's physician dependent we want the physician to decide what's best.
Or the patient.
And we've given some guidelines belt, but anecdotally I've heard from physicians just that maybe you have like elderly patients that's not.
Maybe well suitable to cash.
Tolerate.
The 19 minute treatment.
In that case, maybe a 3 minute treatment is more suitable.
Got it other than that patient being older.
What is preventing the 30% from I mean, I would think that most people would want a shorter treatment as opposed to a longer treatment.
What preventing greater adoption and.
In terms of.
Average.
Per procedure that different than the standard or are you guys still getting reimbursed at the same amount for the standard as well as the new protocol.
So from a reimbursement percentage sir.
Certain insurance companies, obviously reimbursed protocol for.
Deep Tms for.
Depression.
Some maybe some of the insurance companies to call out.
Burst or they don't but I think in general we will really want to leave it up to the customer to decide.
Then have the flexibility of what's more appropriate for their patients.
Got it thank you very much.
Thank you.
Thank you there are no further questions at this time I would like to turn the call back over to management for any closing comments.
Thank you so in conclusion I would like to thank all of our investors and other participants for their interest in brain's way and we look forward to keep you up to date on our progress throughout the remainder of the year with that please enjoy the rest of your day.
Thank you for your participation. This does conclude today's teleconference. You may disconnect your lines at this time.
Have a great day.
Okay.