Q2 2023 electroCore Inc Earnings Call
Greetings and welcome to the Electro Corps second quarter 2023 earnings Conference call. At this time, all participants are in a listen only mode.
And please make sure to mute yourself.
A question and answer session will follow the formal presentation to ask a question press star one on your telephone keypad to remove yourself from the queue Press Star two as a reminder, this conference is being recorded.
I will now it is now my pleasure to introduce your host Dan Goldberger. Thank you. Sir you may begin. Thank you all for participating in today's electric core earnings call.
My name is Dan Goldberger, I'm, the Chief Executive Officer of electric or and I'm also a member of the board of directors.
Joining me today is Brian Posner, our Chief Financial Officer.
Earlier today electric core released results for the second quarter ended June 30th.
2023.
A copy of the press release is available on the company's website.
Before we begin I'd like to remind you that management will make statements. During the call that include forward looking statements within the meaning of the federal Securities laws.
Pursuant to the Safe Harbor provisions of the private Securities Litigation Reform Act of 1995.
Any statements contained in this call that are not statements of historical facts.
It would be deemed to be forward looking statements.
All forward looking statements, including without limitation any guidance outlook for future financial expectations or operational activities and performance are based upon the company's current estimates and various assumptions.
These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated or implied by these forward looking statements.
Accordingly, you should not place undue reliance on these statements for a list of the risks and uncertainties associated with the company's business.
Please see the company's filings with the Securities and Exchange Commission.
I'll, let the court disclaims any intention or obligation except.
As required by law to update or revise any financial projections or forward looking statements, whether because of new information future events or otherwise.
This conference call contains time sensitive information that is accurate only as of the live broadcast today August nine 2023.
We're thrilled to report another record revenue quarter with sales of $3 $6 million for the three months ended June 32023.
That's a 65% increase over the prior year.
Gross margins continue at 84% and cash used in operating activities was $3 $3 million for the second quarter of 2023.
Subsequent to the end of the quarter, we strengthened our balance sheet by raising net proceeds of approximately seven and a half million dollars in a registered direct and private placement of equity to returning institutional and accredited investors and certain directors and officers.
We believe that our increased cash balance.
Along with potential future increases in revenue and continued rationalization of operating expenses.
They provide us with enough runway to operate our business through 2024 and beyond.
More on that later when we discuss guidance.
A prescription headache business continues to grow worldwide, we launched two new nonprescription product lines in late 2022 Vega is a direct to consumer wellness brand and Taxane for human performance, where our active duty military personnel.
Both new products continued to exceed our expectations in the second quarter and are driving excitement about the future.
Vega is currently available exclusively through our e-commerce platform at Vega Dot com.
We are positioning crew Vega is a direct to consumer wellness product for stressed mental acuity and sleep.
No prescription is required for this category.
Vega recorded net sales of $290000 in the second quarter 2023 up from $147000 in the first quarter of 2023.
Based on this initial success, we continue to make targeted investments in marketing to Vegas.
First half of 2023, our revenue return on advertising spend what the industry calls the media efficiency ratio has been greater than 2.2 in other words, we are spending one dollar to generate more than $2 20 sensitive revenue.
We are carefully monitoring through Vega return rates as well, which have increased slightly to approximately 14%. So far this year.
We believe that the true Vega business can scale nicely, if we can maintain or improve these metrics as we move through the year.
Pakistan for human performance is being sold to select Air Force Special forces and Army Special forces units for accelerated training sustained attention reduce fatigue and improved mood as defined by the Air Force Research laboratory or a F. R. L.
No prescription is required and you can find more information at www Dot tax Kim dotcom.
We recorded $311000 of tax revenue in the second quarter of 2023 up from $88000 in the first quarter of 2023.
Ailes funnel through this product continues to grow as word spreads across military units of the potential human performance benefits provided by tax day.
Hello, we are developing a second generation product known internally as tax and to point out in collaboration with a S. R. L and we delivered 10 prototypes to a F. R. L. At Wright Patterson Air Force base, where evaluation last month.
That revenue growth for this product line is likely to be lumpy as active duty units purpose involved for pilot deployment.
Turning now to our prescription headache, dizziness the V. A D O D Hospital channel continues to be our largest customer.
Recall that our gamma course prescription therapy is free to patients covered by veterans administration benefits, representing about 9 million covered lives across approximately 1300 healthcare facilities.
Sales in the V. A D O D channel grew 75% from $1.190 million in Q2, 2022 to $2.081 million in the second quarter of 2023 one.
138 V. A N D O D military treatment facilities at purchase prescription Gamba core products through June 30 of 2023 as compared to 106 through June 30 of 2022.
Our position to spend cash pay channel, including E C directed recount gear.
33% from $325000 into Q 'twenty, two to $433000 in the second quarter of 2023.
These channels have grown from 660 prescribers at the end of the second quarter of 2022 to 2237 at the end of the second quarter of 2023, we added 403, new prescribers during the second quarter of 2023, we believe that the increase in prescribers could be a leading.
Indicator of future growth.
Last year, we announced a distribution agreement with <unk> healthcare LLC that we believe will add more than $12 5 million covered lives within select managed care health system.
The business model with journeys will be similar to how we work with the VA Hospital system.
We'll handle adjudication billing and collections, while the electric car will ship directly to patients and provide in servicing and patient support.
Our field sales team is responsible for educating clinicians within those managed care system.
We continue to work with <unk> on the implementation and while we did not have any revenue in this channel in the second quarter of 2023, we did process several prescriptions during the quarter and expect to begin recognizing small initial revenues in the current quarter.
Revenue from channels outside the United States decreased by 9% in U S dollars to $424000 in the second quarter of 2023 as compared to $467000 for the second quarter of 2022.
Most of our O U S revenue was generated in the United Kingdom by prescription Gamba core sales funded by the National Health service or NHS, which.
Which increased 8% in local currency before unfavorable foreign exchange adjustments.
Now turning to our clinical progress.
On July 25th 2023, we announced the publication of a peer reviewed manuscript.
Fact of transportation cervical vagus nerve stimulation on declarative and working memory in patients with post traumatic stress disorder or PTSD in the journal of affective disorders.
The study was conducted under the direction of Dr. Bremner with the support of Emory University, The Georgia Institute of Technology in the Atlanta Veterans Affairs Medical Center and was sponsored by the Department of Defense small business technology transfer grant.
The F D. A previously awarded prescription gamma core breakthrough designation to treat the symptoms of PTSD and we are working with the agency towards the de Novo submission for that indication.
On July six 2023, we announced that the NFL and the NFL players Association jointly awarded two grants to independent medical researchers at the American Society of pain in Neuroscience E. S. P N and Emory University to fund investigations into innovative first of their kind.
Alternative pain management methods that could benefit NFL players and society at large.
BNS will be used in a pilot study is testing noninvasive treatment of refractory posting customer headache pain led by Doctor, Eric Peterson and researchers at the E. S. P N.
The randomized study will compare in VNS and contact sport athletes experiencing post traumatic headache to current standard of care treatment.
On April 26 2023.
We announced that the National Institute on drug abuse Nida.
Part of the National Institute of Health NIH was awarded Emory University.
And the Georgia Institute of Technology, a three year $6 million grant through the NIH, helping to end addiction long term.
Initiative or heal.
To conduct a pivotal clinical trial of gamma core N V N S for the treatment of opioid use disorder borrow U D. A.
The double blind randomized sham controlled study to be funded by this grant will recruit approximately 100 patients with O U D.
The primary efficacy endpoint of the study will be peak difference and the subjective opioid withdrawal score between N VNS and sham treatment on day, two and three of the initial withdrawal period.
On April 24th 2023, we announced that the Air Force Research laboratories reported data from each study on the ability of our noninvasive vagus nerve stimulation to improve second language learning.
He was conducted at the Defense language Institute in Monterey, California U S Department of Defense Premier Language School.
The study was supported by the Defense Advanced Research projects agency DARPA within their targeted Neuroplasticity training program. The study showed a significant positive effect of N V N S over sham on language recall.
Participants received our treatment.
So showed significant increases in energy and focus over the course of the screening sector.
We will continue to provide updates about our pipeline and other opportunities in the future.
Now I'll turn the call over to Brian for a review of our financials and other guidance items.
Ryan. Thank you Dan for the quarter ended June 32023 electric core reported net sales of $3 $6 million compared to $2 2 million. During the same period of 2022, which represents approximately 65% increase over the prior year.
Increase of $1 $4 million is due to an increase in net sales across major U S channels, including the sale of our prescription gamma core devices and revenue from the sales of our nonprescription human performance taxed in intra Vega products.
Total operating expense in the second quarter of 2023 were approximate $8 million as compared to $7 6 million in the second quarter of 2022.
Research and development expense in the second quarter of 2023 was $1 $2 million as compared to $1.3 million in the second quarter of 2022.
This decrease was due to a decrease in compensation associated with cost cutting measures offset by our targeted investments to support the future iterations of our N VNS delivery platform.
Selling general and administrative expense in the second quarter, 2023, with $6 $8 million as compared to $6 $3 million in the second quarter 2022.
This increase was due to our continuing targeted investments to support our commercial efforts offset by decreases in insurance and stock based compensation expense.
GAAP net loss in the second quarter of 2023 was $4 $9 million compared to the $5 3 million dollar net loss in the second quarter of 2022.
Adjusted EBITDA net loss in the second quarter, 2023 was $4.5 million as compared to a net loss of $4 $9 million in the second quarter of 2022.
Okay.
A reconciliation of GAAP net loss to non-GAAP adjusted EBIT and net loss has been provided in the financial statement tables included in today's press release.
Net cash used in operating activities in the quarter ended June 32023 was approximately $3.3 million as compared to $3 $2 million in the second quarter, 2022, and significantly lower than the $5 $9 million reported in the first quarter of two.
23.
Cash cash equivalents and restricted cash at June 32023 totaled approximately $8 $7 million as compared to approximately $18 million as of December 31 2022.
Subsequent to June 32023, the company raised net proceeds of approximately $7 $5 million through a registered direct offering and concurrent private placement priced at the market under NASDAQ rules.
Looking ahead.
For the full year 2023, we are reiterating our net revenue guidance of $14 million to $15 million, representing more than 60% growth over 2022.
We believe that our prescription headache channels will continue growing by more than 50% to at least $12 million for the full year revenue from new products and a true Vega and taxed in brands could be more than $2 million for the full year and we will begin recognizing revenue from our.
Distribution agreement with <unk> health care for the sale of prescription Gamma Corp, with a select managed care health system.
Including our recent capital raise we had a pro forma cash balance of $16 $2 million as of June 32023.
We expect that cash usage will continue to decrease for the remainder of 2023 as revenues increase we reduced R&D expense and continue to rationalize other operating expenses.
Therefore, we expect our net cash usage to decrease significantly as we progressed through the year and now I'll turn the call back over to Dan.
Thank you, Brian I'm very impressed with our second quarter 2023, operating result, and with the continued momentum in our prescription headache business and bolstered balance sheet.
We are increasingly enthusiastic about the company's long term prospects.
Continued investment in our cat pay and covered business models have greatly expanded prescription gamma core therapy market.
As reflected.
By the continued revenue growth number of facilities and number of prescribers realized in the second quarter of 2023.
Vega has tons of potential as a direct to consumer wellness offerings. We have started with an e-commerce business model, which will be the focus this year and I look forward to launching our next generation App enabled product platform next year.
Our metrics held strong during the second quarter of 2023, and we will continue to adjust our investment in all of our commercial channels as the year progresses.
And to point out is a next generation human performance product being financed in part by the Air Force spectral CT is through their boost program.
It could accelerate the adoption of N DNS for human performance among our active duty military in coming years.
Our pipeline of interest from different branches of the military continues to develop for our tax stim product, which may result in expanded adoption in future quarter.
We also believe that there will be civilian crossover at first responders athletes transportation workers and E gamers become aware of the human performance benefits published so far.
Demand for our prescription gamma core therapy into V. A D O D channel continues to grow based on clinical performance and our increased presence in the field. We have about 35 straight commission sales agents or 10 99 reps in the field managed by a small team of territory business managers and supported by our.
Customer experience team.
Note that our sales and marketing expense increased by approximately $550000 in the second quarter of 2023, while sales grew almost one $4 million signaling that there may be real leverage opportunities in the P&L if revenue increases over time.
Our R&D spend on new products likely peak during the first quarter of 2022, and we expect our quarterly cash usage to decline as we go through the year due to the anticipated revenue growth gross margin stable at approximately 84% declining R&D investments and our intention to maintain discipline.
Around operating expenses.
They're out we're working towards establishing additional indications for prescription gamma cord to treat post traumatic stress disorder and or opioid use disorder look.
Look for new product launches in 2024, featuring our App enabled technology that can provide digital health solutions.
That product platform will be launched in headache, wellness and human performance and as we ramp up our supply chain.
We see many potential growth drivers for the remainder of 2023 and beyond including continued growth in our U S prescription headache business in both the V. A D O D and commercial channels.
Further development of the crew Vega product for wellness mental acuity and sleep driven by ongoing consumer marketing efforts.
Further development of the tact and brand for human performance in the active duty military and beyond.
Revenue through our distribution agreement with parents health care for the sale of prescription gamma core within a select managed care health system. Our app enabled new product platform that will facilitate consumer facing digital health solutions and unlock new business models and prescription gamma core label extensions into P. T S.
And R O U D in 2024 and 2025.
Finally in July 2023, we strengthened our balance sheet by raising net proceeds of approximately $7 $5 million in a registered direct and private placement to institutional and accredited investors and certain directors and officers.
The cash infusion along with increased revenues and consistent reduction in burn should provide us with enough runway to operate our business well into the future.
At this time I'll turn the call over to the operator operator, please open the line for questions.
Thank you.
Ladies and gentlemen at this time, we will be conducting our question and answer session.
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Our first question comes from Jon Vander Marston with sacks. Please state your question.
Great. Thank you and good evening, Dan and Brian can.
Hey, John .
How're you doing.
Can you review the structure of the relief band arrangement and how the economics work for that.
So we.
We haven't said very much publicly about it.
We have.
Signed a distribution agreement with relief and for their relatives product that.
We're going to take to our channel and the VA Hospital system.
And it's early days, but it overlaps very nicely with our call point and with our broader mission of bringing neuro stimulation devices.
To the health care marketplace.
Great and catch them and Vega have really seem to come out pretty strong and with regards to tax then are there any international opportunities International defense agencies, perhaps that you can pursue there and do you need clearance from the Vod to do that and then perhaps also maybe that EOD could.
Be a conduit to talking to others, what do you think about the opportunity there in terms of international.
Yeah, Youre exactly right.
Over the long haul.
In the short run.
The Air Force and Army that were working with are very.
Confidential about how they're deploying our vagus nerve stimulation technology in their conversations with their colleagues to NATO.
It has come up but we don't have very much visibility on.
On how aggressively theyre going to offer it to our colleagues overseas.
Vega.
We have to go through some regulatory compliance issues, but.
But I certainly expect that to vegas going to be available in Canada, and the United Kingdom.
And in the European Union as we roll into next year and get through some of those compliance issues.
Great sounds like a lot of opportunities there.
And last question for me.
You had mentioned that.
R&D is going to be going down, but I'm wondering how that might be allocated going forward I think theres PTSD and perhaps there's a lot of other small.
Things that are potentially out there how do you how do you see kind of a I guess a pie chart.
Breaking down R&D into those different areas.
Yeah, so are our largest.
Chunk of R&D spend right now is in new product development.
We are we're looking forward to launching our next generation technology platform, that's going to use a smartphone into display in a control system and as they are.
As a way to incorporate other wellness.
Data from other devices has been our own device.
That is on track for product launch early next year.
So the R&D spend on product development is going to tail off as we go through the rest of this year and grants issued to pilot production and ultimately building inventory for product launch.
We're working with with the F D. A rounded de novo submission to expand our label to treat the symptoms of post traumatic stress disorder.
That that data has already been collected so it's not a large component of the <unk>.
Our our R&D spend.
The next label extension beyond that is to treat the symptoms of withdrawal from controlled substances like opioids.
Neither the.
The National Institute on drug abuse has awarded a $6 million grant to fund the pivotal trial in that indication.
Dr Bremner at Emory University, and the VA Hospital hospital in Atlanta.
Is the principal investigator for that trial.
And so again, that's not going to hit our books.
Because the pivotal trial is.
Almost entirely funded by by the night of grant so are.
We see our sorry for the long winded explanation here, but we see our R&D expense.
Declining over the course of this year and settling out at a much lower level through 2024.
Yes.
Great well that's it.
It's very helpful for the model. Thank you Dan.
Yes.
Our next question comes from firearm Pakula, Robyn <unk> with H C. Wainwright. Please state your question.
Well, thank you very much.
And Rockies.
Right.
Good afternoon.
Dan.
Couple of.
Questions starting off with a high level so.
Do you ended six months.
$6 3 million.
Ron.
Obviously the guidance is is.
Beyond what we can annualize some of that $6 three number.
So just trying to understand the cadence of.
Revenues in terms of.
You know where do you think the contribution is going to come from.
Obviously you added.
Close to 800 plus.
From that from the new businesses.
<unk> attached to them.
Is the growth the additional growth that we had expected is that going to come from there.
More.
And you are opening up more point of contact at <unk>.
Just trying to understand where this business is set to grow for the next six months yes.
Yes, that's a great question RK and appreciate it so.
The good news is that.
From where we sit all of our U S.
Panels are really starting to accelerate.
Through the current quarter right.
A third of the way or more through the current quarter.
The VA hospital system is our largest customer that grew.
75% in the second quarter.
We see that that growth pace, continuing and maybe even accelerating just in the VA hospital as we go through the back half of the year.
Grid in a little bit because we're kind of at a tipping point now with sort of general acceptance that <unk>.
Biggest nerve stimulation works very well and in that population.
And and also we're having more and more success recruiting.
Great Commission sales reps, what we call 10, 99 reps and so our network of feet on the street is growing very rapidly and it's growing in a scalable way. So that's already our largest revenue line and it's growing by the largest percent.
Our commercial.
Prescription commercial sales.
It has flattened out a bit this year compared to last year, but the.
The big opportunity in our commercial prescription sales.
The <unk> relationship that gives us access to Kaiser we haven't reported any revenue from that channel, we will be reporting some small revenue in the current quarter.
That's 12 million give or take covered lives that are going to have access to gamma core prescription therapy for headache.
Now that we've got that agreement in place and we've worked out the back office issues. So I see a lot of our greenfield growth from that new.
Medical benefit available to Kaiser patent.
Whose vega and and taxed in both of those new products have really surprised us.
With their early adoption its still smaller numbers compared to other channels, but.
A lot of room for growth.
And we've said over and over again, but the tax in business.
Could be very large in coming years, but it's going to be lumpy because it comes in on T OS or significant numbers of devices at a time so.
It's hard for us to predict the timing, but the.
The funnel for taxed mpls is large and growing.
Okay.
Thanks for that and then on the on the tax time.
On the military business itself.
To me, it's a little bit in the first thing.
On the phone.
<unk> you.
Probably six months announcements.
You started bringing in revenues and you're already trying to think of a second generation product.
So.
And I understand you cant talk too much about what's going on behind.
On the boardroom, but in general you know.
How should we think about.
The second generation product coming in.
Is this going to create a second wave of revenues.
Hum.
It will be there.
Would <unk> be gobbled up with second generation coming in or you can.
Both the first generation and second generation.
The next at least over the next year yet.
Yes, so so very good question and in going forward, we need to do a better job of explaining what's going on.
There are some pictures on the tax Jim.
Triple W Dot taxed in Dot Com website.
The new.
Military grade version of our noninvasive vagus nerve stimulator.
That's a very rugged mil spec implementation of the technology.
That was it.
Largely finance the development of that product was largely financed by the Air Force Research laboratories at Wright Patterson Air Force base.
Completely separately.
We are developing a.
Our platform for our.
Let's call it civilian applications of vagus nerve stimulation, that's going to be.
Connected via Bluetooth to a smartphone.
The Doj specifically does not want smartphone.
Connections for <unk> for all of their various security reasons that easier.
Physically different products.
For different end users.
That are both fundamentally noninvasive vagus nerve stimulators.
I hope that's helpful.
There are better pictures on our various websites of the different product configurations.
Okay, and then I'm, sorry, I'm flipping back and forth then going back to the.
Channel.
You know.
The COVID-19 and the.
I have to be careful that might be coming back.
Europe had more.
<unk> for the VA centers.
Is the depth of our relationships with individuals.
In Cleveland and how much of that.
You have already recognized on how much of that is still on the table.
Oh, there is a tremendous amount of runway ahead of us both in terms of the.
The number of facilities that we have opened up.
And within any given facility the number of departments that we have opened up we generally start with neurology in any particular facility.
Behavioral health is very interested in what we're doing especially around PTSD.
And.
And substance abuse.
We have access now to women's health to pain management and.
In some cases, we're now getting into primary care and the VA hospital settings as well so.
We have tremendous forward opportunity not just to open up new facilities, but to go deeper into our existing customer facilities.
Okay.
Okay. One last question for Brian .
So good quarter.
84% gross margin.
With the second generation product coming up on the past.
Yes.
Also.
Good.
At the same time, increasing in terms of volume of product, leaving your facility how should we think about gross margin.
Not just for 'twenty three but.
In the in the short to midterm from here yes.
Hi, RK, yes, so I think we're going to we're pretty comfortable saying, we're going to stay over 80% we have been over 80% since late 2021 at this point.
Excluding onetime adjustments from time to time, so I think we're very comfortable that we'll be over 80% for the foreseeable future.
Thank you. Thank you both for taking my questions.
<unk> Thanks RK.
And our next question comes from Nick Sherwood with Maxim. Please state your question.
Alright, Thank you and congrats on the quarter.
Okay.
Can you give us any information on some of the demographic data that huge or metrics that you've gotten from your e-commerce platform and digital marketing initiatives sort of like which social media platforms that you are driving traffic from and what sort of customers youre seeing that are coming in from these digital marketing initiatives.
Yeah very good question, we have not given out months of that.
Publicly.
One of the metrics that we do watch carefully is.
We can follow the media efficiency rates.
What do we spend on.
What do we spend on media, which is overwhelmingly internet.
Versus the revenue that we're generating and we're solidly.
And I think we said in the call.
We're spending a dollar on media.
To generate $2 $22 25.
<unk>.
Of revenue, which is very scalable the vast majority of our spending so far has been on <unk>.
And you can see that in the Google analytics.
We engaged a an agency.
To help us with social media to develop creative material for us.
That agency guests started to come online in June and July and so.
Candidly, our social media metrics right now are anemic, but im looking forward now that this agency is kicking in.
To seeing some of that.
Some of that social media.
Facebook Instagram to talk.
I don't think were doing much on Twitter Rx yet.
But.
We're looking at a much more concerted campaign not so much over the summer, but kicking in in the fourth quarter.
And then running up to the launch of our next generation product early next year.
Thank you for all that detail I'll get back in the queue.
Thanks.
Thanks for the reminder to ask a question press Star one on your telephone keypad.
Yourself from the queue Press star two.
Our next question comes from Tyler Bhushan with Brookline capital. Please state your question.
Hey, Dan and Brian Thanks for taking the question.
Quick ones here for you. The first one is primarily based on kind of the second generation device plans. So do you have any sense of are you going to be pushing those devices out.
Both the gamba core and the <unk> platforms. I know you already said it is not part of the tax number do you think youre going to do something separate for branding for that App.
The device.
We're going to start in the consumer segment.
With our <unk> brand.
Gamma core Sapphire are.
Flagship prescription product has been a workhorse.
But we do think that there is this segment of the prescript in customer population that would prefer an app enabled.
Platform.
Can collect data and can.
Record data.
Especially in a headache space the notion of having a headache diary and dire yet at a diary.
It's pretty common.
So we do see rolling that out in the prescription space, but probably alongside of gamma core sapphire not not to replace it.
Got it so just for clarification. The plan is to take the current truvada device and fully replace all offerings with this app enabled not offer the non application based.
Device when you get to point out.
Correct.
Okay, Great and then the other quick question Ive got so research and development plans are primarily to wind down for the rest of the year, but Brian you know for SG&A, how should we think about that line item going forward. It seemed like it the last two quarters. It stayed pretty stable is that still the plan should it maybe raise a little bit with sales continuing to grow with us.
Your expectations there, yes, I think you've got to look at it kind of in two buckets, there's the sales and marketing, which has a variable element to it.
In addition to a fixed element that will that will.
That that will increase with sales.
Alright, the variable portion will however, there is a rationalization of operating expenses that Dan referred to earlier in the call.
So we're looking at you know we've reduced some positions in G&A. So I think the G&A fixed part will go down a bit and that'll be offset somewhat by the variable cost element of sales and marketing so it should stay around that number.
More or less obviously, we'd like the variable to go up more than that as the revenue. The revenue revenue go went up as a good thing too right. So that's the way you should look at it.
Grateful fantastic guys. Thank you very much.
Thank you.
Thank you there are no further questions at this time I'll hand, the floor over to Dan Goldberger for closing remarks.
Thank you operator.
Okay.
We appreciate everybody joining our call today.
I want to give special thanks.
So all of our employees.
Who worked tirelessly to deliver our amazing therapy to patients I also want to thank.
The health care professionals and their patients for their loyal support of Gamma core therapy. We are also thankful for the support of a S. R. L.
Right.
The nflpa for supporting our new product initiatives and research lastly.
We have to thank our shareholders, new and old for their ongoing support of the company and our mission to improve health through our proprietary noninvasive vagus nerve stimulation technology platform.
Two of our long term directors J P Arco and Trevor Moody did not stand for reelection at our shareholder meeting last week and we've reduced the size of the board from nine to seven directors.
J P Airco co founded the company with his uncle, Dr. Tom Erica many years ago. He's the most brilliant and passionate inventor and businessmen I've ever had the pleasure to work with.
However, Moody has been a director for many years preceding and smoothie.
Initial public offering.
And the difficult transitions that followed.
Strategic insight and advice has been fundamental to the business success that we're starting to report.
We're very fortunate that both of these fine executives will continue to be available to us as consultants going forward.
Sadly I want you to know that the electric or families morning, the untimely passing last week of Stefan Florida.
Long time engineering team member at our Rockaway, New Jersey facility due to his illness.
You'll be missed.
Okay.
We've made a lot of progress at electric core and we Couldnt have done it without all of your unwavering support. Thank you all and have a good evening.
Thank you. This concludes today's conference all parties may disconnect have a good day.