Q1 2023 Stereotaxis Inc Earnings Call
Good morning. Thank.
Thank you for joining us for stereo taxis first quarter 'twenty twenty-three earnings conference call.
Certain statements during the conference call and question and answer period to follow may relate to future events expectations and as such constitute forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995, such statements involve known and unknown risks uncertainties and other factors, which may cause the actual results.
Performance or achievements of the company in the future to be materially different from the statements of the company's executives may make today. These risks are described in detail in our public filings with the Securities and Exchange Commission, including our latest periodic report on Form 10-K, or 10-Q, we assume no duty to update these statements.
At this time, all participants had been placed any listen only mode. The floor will be opened for questions and comments. Following the presentation. As a reminder, today's call is being recorded it is now my pleasure to turn the floor over to your host David Fisher, Chairman and CEO of stereo taxis.
Thank you operator, and good morning, everyone.
Last call two months ago included a fairly comprehensive overview of stereotactic and our strategy. We will keep today's call more brief focusing on a few commercial and innovation update.
Revenue in the first quarter was essentially identical to last year's first quarter barring the royalty payments that we no longer received from Johnson <unk> Johnson.
System revenue in the quarter reflects partial revenue recognition on the shipment of one Genesis system that is completing installation as we speak during.
During the first quarter and subsequent to our last earnings call. We received a purchase order for Genesis system from a U S Hospital.
We received another Genesis system order from Europe , So far this quarter.
The combination of the partial system revenue recognition out of backlog and the additional order into our backlog slightly increased quarter end system backlog to just over $15 million.
Hospital construction has remained relatively slow weighing on the speed with which backlog converting to revenue and then into installed active robots that said, we have a fairly busy schedule of installs planned over the coming months and continue to expect the majority of our backlog to be recognized as revenue this year.
Since the launch of Genesis three years ago, we have now received orders for 22 robotic systems.
Building, a capital sales capability Cross death, and infrastructure has taken time and required significant effort, but these 22 orders over three years is a dramatic turnaround from the period prior to Genesis when only one system was ordered over the same timeframe.
Of the 22 robots ordered since our launch nine have been installed and are doing procedures sites have been shipped to the hospital customer but are not yet installed are launched and eight remaining backlog waiting to be shipped.
Our orders have been broad based geographically with just over 50% of orders from the United States and approximately 25% each from Europe and Asia.
They are also evenly split between Greenfield robots and upgrades with 11 of each.
We are continuing to improve and refine our commercial capabilities and expect as we do so to see increasing orders of Genesis.
Our capital pipeline looks healthy and are seeing growth across our three focus regions. We have a few dozen approximately 50 unique opportunities in our near term pipeline, where we see a possible order over the next 12 months.
Order flow remains lumpy to macro environment remains pressured and we have still not fully benefited from a normalized replacement cycle given the engagement, we see from the bottom up theres, increasing confidence and a consistent flow of orders.
Most important to the adoption of robotics is enthusiastically positive experience of the physicians, who are using genesis along with the reliability and clinical value Genesis robots are demonstrating in the field.
Engaged and happy customers, who are able to provide great care to their patients and build successful practices or the best ambassadors through which to ultimately increase awareness changed historical misperception and grow adoption.
We are pleased with the procedure utilization, we are seeing on Genesis robots, which is meaningfully higher than our average global utilization.
This is playing out goals at accounts with upgrades that upgraded to Genesis and with those that establish entirely new robotic practices.
Last month I had the opportunity to meet positions from two of our most recent Greenfield Genesis lunches, Poland's National Institute of Cardiology, and Broward Health Medical Center in Fort Lauderdale, where it both we are happy and excited users. We're grateful for our technology and are using it to treat patients in ways that meaningfully improve the quality of care and access to care.
Discussion will take those reinforced the positive impact of our technology and the relevance and importance of robotics for the field.
Our overall experience with Genesis, serving as the spark to restart capital adoption and to support utilization is a reminder of the significant impact innovation has and commercial results.
This segways well into few convert constant innovation.
On our last call we discussed in detail the key efforts in our strategic innovation plan and how they deliver meaningful clinical commercial and strategic value.
Apart from the minority of our users who have been able to upgrade to Genesis most existing robotic electrophysiologist have remained limited to using essentially the same ecosystem of robot catheter and mapping technology for over a decade.
Stereotactic system proprietary Robotically navigated ablation catheter magic is set to positively address it.
Since our last call we have made significant progress on both the EU and U S regulatory paths for magic.
In Europe , we had been awaiting receipt of the full spectrum of technical clinical and microbiology questions from the EU regulator. We have now received questions across all three of those categories and have fully responded to all the questions and what we believe to be a comprehensive and thoughtful manner supportive of CE Mark.
I would not be surprise it would not be surprising to receive follow up questions to our responses, but we believe our previously communicated timeline is reasonable and still see receipt of CE Mark is most likely to occur late in the second quarter or in the summertime.
In the U S submission of an IDE application to the FDA has been dependent on successfully completing a dozen preclinical studies.
As of our call two months ago, we had established at <unk> level institutional animal care and use program and run a few pilot cases, but have not yet performed those on the record studies.
We completed all of the required studies since that call and will complete all the required follow up periods within the next two weeks.
The results, we have seen and physician feedback. We received is very supportive of our confidence that the catheter performs well and will be enthusiastically adopted by the community of robotic users.
Given this progress we expect to make an IDE submission to the FDA in the third quarter.
Our other major innovation efforts, including a smaller self shielding robot that frees us from the extensive planning and construction currently necessary to adopt robotics.
Our family of Interventional guide wires and guide catheters and extend the benefits of our robot into new Endovascular indications of digital surgery hardware and software offering enabling broad operating room connectivity and a full electrophysiology product ecosystem being built in collaboration with Microsoft.
There is a significant amount of work in progress being made on each of these in parallel.
As we provided much more color on each of these during our last call I will just reiterate that the timeline communicated on that cost and we have line of sight to reaching multiple significant regulatory and commercial milestones this year with growing commercial impact from each of these technologies next year.
As these technologies come to market, we will host focused innovation days to present these technologies in greater detail.
While the optics of stereotactic his financial results, our unexciting, we see ourselves as being on the cusp of a strategic transformation we.
We have clear line of sight to future with strategic independence, and attractive revenue model broad robot accessibility and platform indication opportunity.
This core product ecosystem serves as a foundation for our high growth high value Med Tech company pioneering endovascular robotics.
Kim will now provide some commentary on our financial results and then ill make a few financial comments as well before opening the call to Q&A.
Thank you David and good morning, everyone.
Revenue for the first quarter of 2023 totaled $6 5 million down from $7 million in the prior year first quarter, primarily due to discontinued royalties from Johnson <unk> Johnson.
System revenue of $1 8 million reflects revenue recognition on the delivery of one Genesis system.
Recurring revenue for the quarter at $4 7 million was predominantly impacted by the absence of the J&J royalty along with a smaller impact caused by J&J catheter production, shortly which pressured procedure volume.
Gross margin for the first quarter of 2023 with 59% of revenue for.
Recurring revenue gross margin of 79% remains similar with recent quarters with a loss of royalty impacting otherwise operational improvement.
System gross margin of 7% continues to reflect significant allocation of overhead expenses over low manufacturing volume.
Operating expenses in the quarter at $9 5 million, including $2 6 million of noncash stock compensation expense.
Excluding stock compensation expense adjusted operating expenses were $6 9 million compared to the prior year adjusted operating expenses of $6 5 million reflecting.
Increased spending in R&D.
Operating loss and net loss in the first quarter or $5 6 million and $5 3 million compared to $4 1 million for both in the previous year adjusted.
Operating loss and net loss for the first quarter, excluding noncash stock compensation expense for $3 million and $2 7 million.
Negative free cash flow for the first quarter was $3 2 million at March 31, we had cash and investments of $26 8 million.
I will now hand, the call back to David.
Thank you Kim is.
As detailed in today's press release, we are reiterating our expectation of double digit revenue growth for the year, given our existing system backlog and the view, we have into our near term system pipeline and installation schedule.
System orders are also expected to increase in 2023 compared to 2022.
Genesis system revenue remains the primary driver of overall revenue growth until we start to see more meaningful commercial contribution from our innovation strategy in 2024.
Our core recurring revenue business remains relatively sticky and stable and we expect will be boosted significantly as we bring the magic catheter and vascular interventional devices to market.
That said procedures and disposable revenue in the first quarter were slightly pressured by catheter shortages J&J experience due to supply chain and production challenges.
These challenges have continued into April but we are told by J&J that they will be addressed by us by the end of the quarter. We expect some impact from this likely in the low hundreds of thousands of dollars during the second quarter.
Situations like these further reinforce the strategic operational and financial value of the magic catheter and having control over our own destiny.
As we advance our innovation strategy to market, we maintain a balanced financial posture, we are investing in the organizational infrastructure and capabilities that will allow us to drive significant revenue growth from those innovations.
Same time, we remain financially prudent to ensure that our existing balance sheet can comfortably fund all our innovation efforts and commercial launches without the need for additional financing.
We look forward to now taking your questions. Operator can you. Please open the lines for Q&A.
Thank you at this time, we will now conduct today's question and answer session to ask a question. Please press Star then the number one on your telephone keypad, we'll pause for just a moment to compile the Q&A roster. We will take our first question from Joshua Jennings with TD Cowen. Your line is now open.
Hi, good morning, Thanks, a lot for taking my questions.
Hi, Jeff Good morning.
Good morning, Thanks, I wanted to ask about just the replacement cycle channel.
Are you seeing any facts in terms of that opening up and where do you think needs to happen for that replacement cycle opportunity.
To start to kick in more fully.
Sure.
So it's been interesting because when we started this then with the launch which is around three years ago, we were always talking about.
The typical traditional 10 year cycle by which capital equipment gets replaced and by capital equipment, We mainly X rays, and Cath labs, and clearly that has been extended over the last few years, where we now have multiple systems that are even 14 15 years old out there in the field.
I think in the past I've mentioned that it's unclear how much of that extension of the life of X rays is due to an.
Cyclical nature.
The macroeconomic environment and the financial pressures that hospitals have been under versus the secular change due to perhaps the reduced use of X rate overall and so the light the longer life that they can exist and before needing to be replaced probably the truth is a mix of both.
Either way, we have not seen that a contraction in that age where people are now starting to replace X rays earlier. So it seems like the average age of an X rates definitely extending in most settings beyond 10 years and.
We are starting to see is some of these sites become very old we are starting to see obviously much more of a contribution from the replacement cycle of the two orders that we just that I. Just mentioned one was a replacement order one was a greenfield order.
And by then but I would expect still that in our normalized level, we should probably be receiving high single digit number of replacement systems. A year, we have still not gotten to that point, we're still probably in the mid single digits and so we probably still have a little bit of room to go to get to a more normalized level.
Understood.
Wanted to ask.
Question about potential just now Youre drive for an open ecosystem within the <unk> World.
Are there any potential.
Potential advancements with say in the habit for integrate your robotic magnetic navigation technology, and Fedex mapping platform or any other mapping system integrations that we should have on our radar for this year.
Sure so.
We won't obviously, we can't comment on any type of collaborative activities that we would be doing.
Prior to them being announced I would say that we've said we've talked obviously about the importance of Ob ecosystems more generally for progress of the medical field and for patient care and for traditional choice and then more specifically also for stereo taxes in being able to pair the benefits of robotics broadly with a rate.
A diagnostic and therapeutic technology and so that concept of an open ecosystem is an important one I think we've made quite a lot of progress on it.
For the last few years and Theres, obviously more progress to be made and so I'd say stay tuned and we look forward to sharing updates as we are able to.
Great and just last question sorry to sneak one more in but this.
This postcode inflation rates.
We're getting a commercial test in the United States is on.
The major cardiac ablation catheter players.
<unk> teed up to to get approvals over the coming 12.
12, 18, 24 plus months.
I guess, how would you have investors think about the role that robotic magnetic navigation system like the Genesis or mobile.
Could play and could potentially enhance one of these larger players platforms and help them win. This race. This PSA race. Thanks for taking the question Sue.
Sure.
And so we obviously see what's going on in the field and overhaul.
Yes.
A view kind of what Jay how PFA is evolving into the field and in many ways kind of week, we view actually robotics is particularly well suited to be paired with PFA. We've had some experience there.
Because in the past some of the preclinical studies that we've done with different TFA generators and some of the ongoing work that we are doing there and and given the constant and consistent contact that a robotically navigated catheter has with the heart tissue there actually.
Particular, mechanistic benefits to pairing of robot with PSA and we've done the preclinical work like I've mentioned and we're trying to kind of advance things in a way where we can reach a first in man study and and provide more clarity on.
Our clinical commercial timeline.
I would say kind of overall I would look though when I step back and think about PFA and how its entering the EP field.
When you look at kind of all the cardiac ablation procedures more generally.
Really kind of PFA is right now being targeted at paroxysmal AF and Theres some thoughts in Corso persistent AF.
We have.
SaaS, we have a majority of our procedures and kind of in the ventricle and certain SVT style procedures, where probably it will take still.
Five to 10 years to know the role of PSA in those settings under certain procedures, where PSA will likely never be in.
Particularly applicable or beneficial or safe given kind of the type of arrhythmias that you would be dealing with in certain focal arrhythmias and even an app as you.
Probably noticed the original view of the PFA being a panacea.
<unk> into a more nuanced understanding of its role in it.
Partial rosenfield and so I think again.
We might not be the first mover in the PFA space, but I think we're doing all the right things on.
On the back side to make sure that we have a nice offering there and Thats, where again. This open ecosystem does provide a lot of value and allowing us to pair the benefits of robotics with with a range of other technologies that are being developed.
Excellent I appreciate it thanks David.
Thank you.
Next we'll go to Frank <unk> with Lake Street. Your line is now opened.
Great. Thanks for taking the questions and good morning.
Wanted to start with one on the construction timeline you briefly commented it.
On it in the prepared remarks, but was hoping you could take us a little bit deeper into how the construction timelines have been trending year to date necessary as any sign of those starting to be a little bit more predictable as we look at the back half of 2023.
Hey, Frank good morning.
So so when I look now at kind of our our Rguest history of these 22 orders received since we launched Genesis and it seems kind of almost almost.
Almost kind of there.
A lot of variability around these averages, but almost kind of.
One year from an order till.
Roughly until till at most sites get kind of revenue recognized and installed at around two years until they go after revenue recognized that they get shipped and then kind of around two years until they get kind of installed and are starting to do procedures. There's obviously a wide variability around that we've had orders that get shipped and installed and starting doing procedures.
Within six to nine months, and we've had things where it takes two years and you still don't recognize revenue by shipping the system and so there's kind of a wide band around that but that seems to be kind of what is the average has ended up being we are seeing more definitely more in <unk>.
<unk> installations over the next.
Let's say nine months or the remainder of this year and with a fairly busy schedule of things.
<unk>.
Some of those are things that have been backed up for long periods of time and other of those are fairly recent orders were.
The site seem to be on track for for for for meeting the timelines that they want to want to have for installation, we still see many anecdotes in many cases, the hospitals that have a plan and that plan gets significantly delayed due to whatever construction issues or permitting issues. They have.
<unk>.
I still am.
Very much looking forward to the day, where we do not have the complexity and the pain of the architectural and construction timelines, but and but at least we're seeing some movement.
Kind of.
Seemingly that is real revenue.
For the next several months.
Okay. That's helpful and then for my second one maybe speak to some of the usage patterns.
Noticed from the new Genesis installs over the last couple of years and what Im hoping you can touch on as maybe where are these physicians typically starting to use the technology with patient pool and what's their usage patterns look like at different milestone say three months six months 12.
Months Im just trying to get a better understanding of how the new Genesis users are ramping and how their usage usage is expanding within their patient populations.
Sure so and so I don't have all the data in front of me.
So youre kind of in a comprehensive way with three months six months 12 months data, but I'll kind of let me think can kind of provide kind of a.
Ross to answer for that.
<unk>.
The key kind of across our installed base.
Stereotactic basis overrepresented in the more complex ablation, that's where the mechanistic benefits of our robots are particularly pronounced.
And so about half of our volume is in ventricular tachycardia premature ventricular contractions at congenital patients and those types of patients and Thats also a patient population, which is generally underserved.
Undertreated and many of them don't have an option for good therapy without the use of our robot and so that's where we provide particular clinical value that said there is benefits obviously across the spectrum of brands of ablation procedures and so there are.
Even procedures that might be considered typically as simple procedures, where we are being used because of the safety profile.
And the precision of robotics and the benefit of clinical benefits. It provides and so there is kind of a full spectrum when I think about kind of our genesis installed base.
Generally would say that.
Types of procedures, they perform as follows that spectrum of our overall installed base and so.
We definitely have a pronounced use in the complex cases, and there is often times the motivating driver for why let's say a greenfield account would adopt a robot, but we do see usage across the spectrum of procedures not just in the most complex ones at least.
Across many of the sites there are certain sites with shell, which might limit us only to the more complex cases, but and but we definitely do see across the installed base across the Genesis installed base across Greenfield Genesis installs also usage kind of across the spectrum.
And.
Does that kind of partially answer you.
No that's perfect I appreciate the color and thanks for taking the questions.
Okay. Thank you very much Frank.
Next we'll go to Alex Nowak with Craig Hallum Capital Group. Your line is now open.
Okay, great. Good morning, everyone, maybe just.
And on the J&J royalty going away, just remind us the dynamics around that and if the royalty it didn't go away.
What we're going to be the consumable sales in this quarter. Just so we can figure out sort of a same store volume trends.
Sure Hi, Alex good morning, and so so.
We've had obviously a very long term.
Our relationship with Johnson, and Johnson and several years ago that relationship was turned.
Turned from an exclusive relationship into a non exclusive relationship.
And and then there was the <unk>.
Frame, where would remain a nonexclusive relationship and then where there would be a tail supply period. We're still for several years J&J would have to continue supplying catheters to the market and that transition from the nonexclusive relationship to the tail supply period has started at the beginning of this year and J&J.
Stop paying us royalties at that time.
We missed out on something like about half a million dollars.
In the quarter.
Due to the lack of the royalties.
Okay. That's helpful. And then how long does that tail supply agreement last year.
Three year period.
It is three years and then after the three years Theres basically no no assumption that there will continue to supply catheters is that right that would be the timeframe, we need to have magical bye bye.
There is no legal requirement contractual requirement.
And I think it's still open open to interpretation of how things will play out there, but and open to kind of seeing how things will play out, but if we do our job well there shouldn't be any reasons for them to add to.
To continue supply.
Okay understood and then any discussion with the FDA around the Gen. III self show the robot just what needs to be done internally before submitting that five 10-K and then what.
And for US the timelines look at pull it forward what the drag it out.
So.
We have made an initial in for Ben.
Informed FDA that this is kind of coming so there are some awareness there as that was not kind of submit.
Submitted any documentation in a material way and there is a lot of very recent experience with FDA on <unk>.
And Ah robotic magnetic navigation system, we received Genesis FDA approval, just three years ago, and so we went and that was a fairly extensive process.
For those of you that were on the calls at the times when you may remember.
We had.
Some catch up 510 case that has to be done. So there were there were multiple steps in the process of that approval and given the long period that stereotactic had not been in regular dialogue with SBA and since that time, we have been in relative dialogue dialogue.
I think kind of we keep them up to date on our progress and and so overall I think we have a fairly clear understanding of the requirements for submission obviously regulatory yen.
Expectations evolve also overtime. So let's say, we're aware of the fact that there is generally more of a focus on things like human factors testing.
As cyber security and so we know that those are things that perhaps we want to do.
At least document in a more extensive fashion.
Versus previously, but add but overall I think we feel very comfortable about the about the regulatory path and then and what needs to be done on our side and we have the very recent experience, which had which guides our past.
Excellent. Thanks for the update appreciate it.
Thank you.
Next we'll go to Neil Chatterji with B Riley Your line is open.
Hey, guys. Good morning, Thanks for taking the questions.
Maybe just online.
<unk>.
Just curious.
Things are shaping up with the current capital spending environment and kind of ongoing hospital headwinds.
I'd like you still kind of see a pipeline of about 50.
So just kind of curious to get an update there.
Yes, so when we look at kind of the pipeline as I mentioned in the past that we have a more.
More organized way to now review the pipeline and status.
In each region and there's approximately 2000, a little over 2000 and the U S about a dozen in Europe and about a dozen in Asia that have kind of accumulated on this pipeline where the.
The sites are talking about potentially getting an order over the next year and what I've seen generally is that there is obviously a subset of those that will get delayed and but kind of that sand that's how our pipeline looks at this point.
I kind of soy per I guess this bottom up.
Relative kind of a healthy and growing pipeline I think as our team matures as kind of their efforts in the field mature.
As the general marketplace, I think sees our overall progress as a company that helps and so I see that kind of bottom up and our pipeline is it's growing I pair that with kind of a top down assessment that it still remains.
A relatively pressured environment.
And the macro environment is not.
What I've called in the past is still are headwinds environment, not a tailwind environment, but I think with the balance of those two.
We're we're able to do kind of some progress obviously and we feel confident in the guidance that we've given this year and so I guess kind of the balanced viewpoint, given this bottom up and top down than data.
Got it thanks for that.
And then just maybe on China and Mike aboard.
The ecosystem, there thats being developed.
Didn't sound like any huge updates.
<unk>.
There versus last quarter or last call just curious how things are tracking there you obviously at Genesis.
<unk> for approval.
And the broader platform being developed so just curious on an update.
Sure so.
Mike reports submitted Genesis at the end of last year and over the last.
A couple of miles has been submitting some supplemental information and to the regulator there to that NPA and they.
We are.
He has been also working on a submission for the catheter.
<unk>.
It has to wait until we get CE Mark for Magic before can submit magic a given.
Given the pathway that we want to go through but it's also working on the submission for its own variant.
Magnetically, driven ablation catheter and <unk> and from our mapping into progression perspective, we've already done very well and so that's something that won't be a long pole in the tent at all and so as we look at kind of all of that and what Microsoft feels is a reasonable timeline given its discussions with their with NMDA and we're still kind of comfortable.
<unk> in this first half of next year that full ecosystem coming together there might be certain approvals that can come earlier.
But then but I'd say that kind of that feels like the right timeline overall, and then and really it is that ecosystem of robot catheter mapping.
That should come together well in order to allow for the full launch and taking advantage of a full commercial team.
Got it and maybe just one last quick one if I missed it but just.
Any update on how youre tracking for their mobile or Rms.
Clearance in Europe in the second half.
Yes, so we've talked about kind of in the third quarter and so I would say we are working feverishly.
On multiple fronts, there to be to be ready for it.
For kind of an approval at that point.
The third quarter.
Great. Thanks, that's it for me.
Thank you.
Okay next we'll go to Adam manner with Piper Sandler Your line is now open.
Hi, David Hi, Ken Thank you for taking the questions.
Two from me the first one is on the Magic RF catheter.
And I think I heard timelines for Europe still stand late Q2 or summer.
Can you talk just a little bit about kind of commercial strategy there.
In terms of the launch how aggressively will you be rolling magic out to customers will you look to bolster or add sales reps prior to launching that just maybe flesh out the commercial strategy a little bit and then I had a follow up thanks.
Sure Hi, Adam good morning.
So so yes, so the timeline obviously it still remains somewhat of a black box a respond to questions. When you kind of sit and wait but everything is now kind of back on their cards. We were very pleased that we got at least the first set of questions from them across all three categories and we were able to respond to.
Timely fashion.
When we look at kind of the commercial and so and so assuming we get.
<unk> at some point.
The summer and the.
The overall commercial strategy.
Is is we have invested somewhat in our team in Europe , and so we are kind of two people more than what we have had historically and that was done in anticipation of then.
Kind of magic coming to market and the opportunity that presents itself.
And we are.
We have kind of done fairly detailed reviews of every one of our 30 hospitals.
Hospitals in Europe , and that have a robot and in each one understanding both the logistics of bringing the catheter to market is there a tender is theyre not what what.
Our hospital.
Application needs to be filled in and.
Just on the logistics side on the financial side, and what should pricing look like.
Kind of clinical side, what are the motivations of the physicians what do they think about the catheter what would be the drivers of adoption. The risks to adoption. So I think we have a fair we have a good clarity. The team. There has worked kind of there now for a fairly long time, they've had to work on these business plans and we have a fairly good plan.
Site by site, what we want to do we have designated a few sites a handful of sites.
Yes.
As those that will participate in a limited market release phase you, while the catheter has.
Has kind of shown itself to be robust and working well across many of the many studies now.
We there is a type of also art to cardiac ablation procedures and so you do want.
Good physicians, who are interested in being the pioneers who are interested in doing the early procedures to have a first.
Shot at things two way to learn some of the tips and tricks that can only really be learned in that setting and then to be available to share their experience and and help also train others and so I would think about on the LMR period of of probably kind of.
Several weeks a.
A few number of months couple of months, perhaps and we're really focused on those sites and making sure that they and.
Use the catheter across a range of cases and can then say document.
Refine best practices at which point then we would move into a full launch across all 30 accounts in Europe , and so I think about it as a relatively with that kind of limited.
Market release period post acting relatively quick adoption across our installed base I've talked in the past that there are certain countries in Europe , where you do have.
Tenders or other kind of administrative hurdles, which which don't allow you to fully trends kind of convert in accounts and just based off of commercial.
The agreement and just based on kind of the physician's desire. So there are some of those places that countries like France. Some of the Scandinavian ones, where you do have kind of other logistical barriers, which will just take kind of that over the course of probably a year or so you can overcome that the vast majority of those but there are some of those that will slow.
Option at certain accounts as we work through that.
Okay, Great very helpful color, David Thank you for that and.
The follow up just wanted to ask about HRS, which.
Scheduled for later this month and I saw in the press release.
Something about.
The potential to share meaningful updates on.
The innovation strategy at that conference I was hoping you could.
Just expand on that a little bit what do you have planned.
Neither from a clinician standpoint, or wall Street perspective, just any more details on <unk> would be great. Thank you for taking the questions.
Thanks, Adam.
Stay tuned.
At this point will share much more but.
But as kind of it's appropriate and as we're able to share more.
Look forward to sharing.
Some news at HRS that we think will be.
Impactful for the EP community and then also impactful obviously for the company and for the.
The Investor base.
Base and so we look forward to sharing at their end and more generally at HRS and we're excited for four are showing there and there is a special session joint session of the society for cardiac robotic navigation and HRS at the conference and so that will be a nice session in which robotics is.
<unk> is obviously kind of front and center and then and again apologies I can't share much more at this point, but at but we look forward to sharing news in less than two weeks.
Okay perfect, we'll stay tuned there thank you.
Thanks, Adam.
Okay. There are no further questions at this time I will now turn the call back over to David official Chairman and CEO of stereo taxes for any additional or closing remarks.
Okay. Thank you very much for all your questions. We look forward to sharing updates at the heart Rhythm Society meeting next week and working hard on your behalf in the coming months and we will speak again in a quarter. Thank you.
This concludes today's conference call you may now disconnect.
[music].
Yes.
Okay.
Okay.