Q3 2023 electroCore Inc Earnings Call
Greetings and welcome to the Electrocorp third quarter 2023 earnings conference.
Greetings and welcome to the Elektra Corps third quarter 2023 earnings Conference call. At this time all participants are in a listen only mode. Please make sure to mute yourself a 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 as a reminder.
At this time, all participants are in a listen-only mode. Please make sure it's a mutual-
A question and answer session will follow the formal presentation. If anyone should require operators, this is during the conference, please press star 0 on your telephone key.
As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Dan Goldberger. Thank you, sir. You may begin.
This conference is being recorded 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 Electricor earnings call. My name is Dan Goldberger. I'm the Chief Executive Officer of Electricor and I am also a member of the Board of Directors.
Thank you all for participating in today's electric core earnings call. My name is Dan Goldberger and.
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.
Joining me today is Brian Posner, our Chief Financial Officer.
Earlier today, Electricore released results for the third quarter ended September 30, 2023. A copy of the press release is available.
Earlier today electric core released results for the third quarter ended September 32023.
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, which are made pursuant to the safe Harbor provisions of the private Securities Litigation Reform Act of 1995.
Before we begin, I'd like to remind you that management will make statements during the call that include forward looking statements within the meeting of the federal securities laws, which are made 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 fact to be deemed to be forward-looking statements.
Any statements contained in this call that are not statements of historical fact may be deemed to be forward looking statements.
All forward-looking statements, including without limitation any guidance, outlook, or future financial expectations or operational activities and performance, are based upon the company's current estimates and various assumptions.
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.
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.
to materially differ from those anticipated or implied by these forward-looking statements.
Accordingly, you should not place undue reliance on these
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.
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 Committee.
Electroport disclaims any intention or obligation except as required by law to update or revive any financial projections or forward looking statements whether because of new information, future events or otherwise.
Electric cord disclaims any intention or obligation except as required by law.
Date, or revise any financial projections or forward looking statements, whether because of new information.
Or events or otherwise.
This conference call contains time-sensitive information that is accurate only as of the live broadcast today, November 8, 2023.
This conference call contains time sensitive information that is accurate only as of the live broadcast today November eight 2023.
Electricore was founded in 2005 to commercialize the use of our proprietary non-invasive vagus nerve stimulation for medical and general wellness applications.
Electric car was founded in 2005 to commercialize the use of our proprietary noninvasive vagus nerve stimulation for medical and general wellness applications.
The vagus nerve is the longest cranial nerve in the body, bringing information from the visceral organs to the brain.
The vagus nerve is the longest cranial nerve in the body, bringing information from the visceral Oregon's to the brain.
Stimulating the vagus nerve affects many important autonomic functions in the brain and in the body, including neurotransmitter levels, inflammation levels, and metabolism.
Stimulating the vagus nerve affect many important autonomic functions in the brain and in the body, including neurotransmitter levels inflammation levels and metabolism.
Surgically implanted vagus nerve stimulators have been available from other companies for more than 40 years. For chronic conditions like...
Surgically implanted vagus nerve stimulators had been available from other companies for more than 40 years.
Conditions like epilepsy depression.
So a large and growing database confirms the safety and efficacy of the technique.
So a large and growing database confirms the safety and efficacy of the technique.
Building on that science, Electricore pioneered non-invasive vagus nerve stimulation, and our products are now available by prescription for certain headache conditions and without a prescription for general wellness.
Building on that science electric or pioneered non invasive vagus nerve stimulation and our products are now available by prescription for certain headache conditions and without a prescription for general wellness.
We have a growing pipeline of additional indications that we plan to launch in the future.
We have a growing pipeline of additional indications that we plan to launch in the future.
We're thrilled to report a fourth consecutive record revenue quarter with sales of four and a half million dollars for the three months ended September 30th, 2023.
We're thrilled to report a fourth consecutive record revenue quarter with sales at four and a half million dollars for the three months ended September 32023.
That's a 128% increase over the prior year and 27% increase sequentially.
That's the 128% increase over the prior year and 27% increase sequentially.
Gross margins held steady at 85% and Brian will discuss the financials in more detail later on.
Gross margins held steady at 85% and Brian will discuss the financials in more detail later on.
During the third quarter, we strengthened our balance sheet by raising net proceeds of approximately seven and a half million dollars in a registered direct and private placements of equity to returning institutional and accredited investors and certain
During the third quarter, we strengthened our balance sheet by raising net proceeds of approximately seven and a half million dollars registered direct and private placement of equity to returning institutional and accredited investors and.
And certain directors and officers, we believe that our increased cash balance along with potential future increases in revenue and continued discipline around operating expenses.
We believe that our increased cash balance along with potential future increases in revenue and continued discipline around operating expenses should provide us with enough runway to operate our business through 2024 and beyond.
Provide us with enough runway to operate our business through 2024 and beyond.
Our prescription headache business continues to grow worldwide. We launched two new non-prescription general wellness product lines in late 2022. ZuVega is a direct-to-consumer brand and tax sim for human performance is for our active duty military personnel. Both new brands continue to exceed our expectations in the third quarter and are driving excitement about the future.
Our prescription had a business continues to grow worldwide, we launched two new nonprescription general wellness product lines in late 2022.
Vega is a direct to consumer brand and Taxane for human performance is for our active duty military personnel.
Both new brands continue to exceed our expectations in the third quarter and are driving excitement about the future.
Truvega is currently available exclusively through our e-commerce platform at www.truvega.com. We are positioning Truvega as a direct-to-consumer general wellness product for stress, relaxation, sleep, and mental acuity. We are carefully managing our Truvega advertising spend as we fine-tune our messaging and explore various platforms.
Vega is currently available exclusively through our e-commerce platform and Triple W. Dot true Vega Dotcom, we are positioning crew Vega is a direct to consumer general wellness product for stress relaxation sleep and mental acuity, we are carefully managing our true Vega advertising spend as we fine tune it.
Our messaging and explore various platforms, we held the total spend fairly constant from Q2 to Q3. So we're not surprised that sequential revenue was relatively flat in the quarter. So they can bake a brand.
We held the total spend fairly constant from Q2 to Q3, so we're not surprised that sequential revenue is relatively flat in the quarter for the True Vega brand.
Truvega recorded net sales of $267,000 in the third quarter of 2023, in line with our second quarter 2023, Truvega revenues of $290,000.
Vega recorded net sales of $267000 in the third quarter of 2023 in line with our second quarter 2023, who Vega revenues of $290000.
Based on this continued success, we're making targeted investments in marketing Truvega and remain confident in our previous guidance that Truvega sales will be approximately $1 million for the full year 2023.
Based on this continued success, we're making targeted investments in marketing to Vega and remain confident in our previous guidance. The true Vegas sales will be approximately $1 million for the full year 2023.
For the three months ended September 30th, 2023, our revenue return on advertising spend, what the industry calls a media efficiency ratio, or MER, was 2.09. In other words, we're spending $1 to generate $2.09 of revenue.
For the three months ended September 32023, our revenue return on advertising spend what the industry calls a media efficiency ratio or M. E. R was 2.09 in other words, we're spending $1 to generate $2 nine sensitive revenue.
We're carefully monitoring Truvega return rates as well, which have decreased slightly to approximately 12% so far this year. We believe that the Truvega business can scale nicely if we can maintain or improve these metrics.
We're carefully monitoring through Vega return rates, as well, which have decreased slightly to approximately 12%. So far this year.
We believe that the true Vega business can scale nicely, if we can maintain or improve these metrics.
Packed SIM for human performance is being sold to select Air Force Special Forces and Army Special Forces units for accelerated training, sustained attention, reduced fatigue, and improved mood as defined by the Air Force Research Laboratory or AFRL. No prescription is required and more information is available at www.tack-stem.com.
Vaccine 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 more information is available at Triple W. Dot tack dash stem dot com.
We recorded $601,000 of tax-stim revenue in the third quarter of 2023, up from $311,000 in the second quarter of 2020.
We recorded $601000 of tax them revenue in the third quarter of 2023 up from $311000 in the second quarter of 2023.
For the nine months ended September 30th, 2023, we've already met our previously faded guidance of $1 million of revenue from the taxed in brand for the full year 2020.
Through the nine months ended September 32023, we've already met our previously stated guidance of $1 million of revenue from the tax and brand for the full year 2023.
The sales funnel for this product continues to grow as word spreads across active duty military units of the potential human performance benefits provided by tax.
The sales funnel for this product continues to grow as word spreads across active duty military units of the potential human performance benefits provided by tax Jim.
In parallel, we're developing a second generation product known internally as TaxSim 2.0 in collaboration with AFRL, and we continue to build prototypes for evaluation by our government research partners.
In parallel we are developing a second generation product known internally as taxing to point out in collaboration with a S. R. L and we continue to build prototypes for evaluation by our government research partners.
We have stated before the revenue growth for this product line is likely to be lumpy as active duty units purchase in bulk for pilot deployment.
We have stated before the revenue growth for this product line is likely to be lumpy as active duty units purchased in bulk for pilot deployment.
Turning now to our prescription headache business, the VA DOD Hospital Channel continues to be our largest customer. You'll recall that our Gamma Core prescription therapy is free to patients covered by Veterans Administration benefits, representing about 9 million covered lives across approximately 1,300 healthcare facilities.
Turning now to our prescription headache business. The D E D O D Hospital channel continues to be our largest customer you'll recall that our gamma court prescription therapies street of patients covered by veterans administration benefits, representing about 9 million covered lives across approximately 1300 health care facilities.
<unk>.
Fails in the VA DOD channel grew 135% from $1,167,000 in Q3 2022 to $2,737,000 in the third quarter of 2023. 141 VA and DOD military treatment facilities have purchased prescription gamma core products through September 30, 2023, as compared to 113 through September 30, 2022.
Sales into V. A D O D channel grew 135% from $1.167 million in Q3, 2020, 222 million and $737000 in the third quarter of 2023.
141, D a and D O D military treatment facilities have purchased prescription gamma core products through September 30 of 2023 as compared to 113 through September 30 of 2022.
The VA Hospital Administration Headache Centers of Excellence, or HCOE, estimates approximately 600,000 patients are being treated for headache in the VA hospital.
The VA Hospital administration headache centers of excellence or H C O E estimates.
Approximately 600000 patients are being treated for headache in the VA Hospital system.
Since we've dispensed approximately 4,000 GammaCore devices to veterans, that represents less than 1% of the total addressable market within the VA.
Since we spent approximately 4000 gamba core devices to veterans that represents less than 1% of the total addressable market within the VA system. We look forward to continued penetration of this important panel.
We look forward to continued penetration of this important channel.
Our physician dispense cash pay channel, including GC Direct and G Concierge grew 19% from $359,000 in the third quarter of 2022 to $427,000 in the third quarter of 2023.
Our position to spend cash paid channel, including GC direct and G. Concierge grew 19% from $359000 in the third quarter 'twenty two to $427000 in the third quarter of 2023.
These channels have grown from 938 prescribers at the end of the third quarter of 22 to 2,599 at the end of the third quarter of 2023. We added 362 new prescribers during the third quarter of 2023. We believe that the increase in prescribers could be a leading indicator of future growth.
These channels have grown from 938 prescribers at the end of the third quarter of 22 to 2599 at the end of the third quarter of 2023.
We added 362, new prescribers during the third quarter of 2023, we believe that the increase in prescribers could be a leading indicator of future growth.
Last year, we announced the distribution agreement with Jern's health care. That we believe will add more than 12 and a half million covered lives within a select managed care health.
Last year, we announced the distribution agreement with <unk> health care.
That we believe will add more than 12, and a half million covered lives within a select managed care health system.
business model which earns is similar to how we work with the VA hospitals.
This model with journeys is similar to how we work with the VA Hospital system Barron's handles adjudication billing and collections, while the electric car ships directly to patients and providers in servicing and patient support.
Derns handles adjudications, billing, and collections, while Electricor ships directly to patients and provides in-servicing inpatient support. Our field sales team is responsible for educating clinicians within those managed care systems.
Our field sales team is responsible for educating clinicians within those managed care systems.
Yeah.
We continue to work with churns on the implementation, and we are pleased to have recorded small initial revenue from this relationship during the third quarter of 2020.
We continue to work with journeys on the implementation and we are pleased to have recorded small initial revenue from this relationship during the third quarter of 2023.
Our field sales function will continue developing champions within the target managed care system.
Our field sales function will continue developing champions within the market within the target managed care system, and we think <unk> could be a significant revenue source in 2024 and beyond.
And we think variance could be a significant revenue source in 2024 and beyond.
Revenue from channels outside the United States increased by 11% in US dollars to $464,000 in the third quarter of 2023 is compared to $417,000 for the third quarter of 2022. Most of our OUS revenue was generated in the United Kingdom by prescription gamma course sales funded by the National Health Service or NHS, which increased 13% in local current
Revenue from channels outside the United States increased by 11% in U S dollars to $464000 in the third quarter of 2023 as compared to $417000 for the third quarter of 2022.
Most of our O U S revenue was generated in the United Kingdom by prescription Gamma core sales funded by the National Health service or NHS, which increased 13% in local currency.
On October 17, 2023, we announced that Gamma Port therapy will continue to be listed in the United Kingdom's National Health Service or NANHS Supply Chain Catalog for at least an additional two years through March 17, 2026.
On October 17, 2023, we announced that gamma core therapy, we will continue to be listed in the United Kingdom's National Health service or in a a NHS supply chain catalog for at least an additional two years through March 17 2026.
The List Bank, which commenced on June 4, 2019, was scheduled to terminate on March 18, 2024.
The listing which commenced on June four 2019 with scheduled to terminate on March 18 2024.
Now turning to our clinical progress on October 24th, 2023, we announced top-line data from an abstract presented at the 2023 American College of Gastroenterology Annual Meeting regarding the potential for NVNS to decrease the use of acute rescue medications for exacerbations of an nausea due to gastroparesis, GP, or functional dyspexia, FD.
Now turning to our clinical progress on October 24, 2023, we announced topline data from an abstract presented at the 2023 American College of Gastroenterology annual meeting regarding the potential for N V. N S to decrease the use of acute rescue medications for exacerbations of nausea beauty.
Gastroparesis G P or functional dyspepsia F D.
The study is entitled Noninvasive Vagal Nourished Immulation Reduces Nauseo Rescue Medication in Patients with Casher Parhesis and Related Disorders with additional benefits on multiple other associated symptoms.
The study is entitled Noninvasive, vagus nerve stimulation reduces nausea rescue medication in patients with Gastroparesis and related disorders with additional benefits on multiple other associate incentives.
The primary endpoint was reducing the use of anti-naudio medication.
The primary endpoint with reducing the use of anti nausea medications.
On October 10th, 2023, we announced top line data from two abstracts that were presented at the 15th World Stroke Congress on the possible role of NVNS in the treatment of acute neurological injury.
On October 10th 2023, we announced top line data from two abstracts that were presented at the 15th World stroke Congress on the possible role of N D&S in the treatment of acute neurological injury.
The first trial entitled Noninvasive Agustin Restimulation is Safe and Efficacious in the treatment of headache associated with subarachnolid hemorrhage, vanquish. Was conducted at North Well Health in New York and showed a significant reduction in the overall pain score and a 14% decrease in the average morphine equivalent dosage after two weeks of treatment, as well as a trend towards a three-day decrease in average hospital stay.
The first trial entitled Noninvasive, Vagus nerve stimulation is safe and efficacious in the treatment of headache associated with subarachnoid hemorrhage vanquish.
It was conducted at North well health in New York and showed a significant reduction in the overall pain score.
And a 14% decrease in the average morphine equivalent doses after two weeks of treatment as well as a trend towards a three day decrease in average hospital stay.
The second study entitled Non-invasive Agus Nourstimulation and Acute is Scheme Extrogue, or Novus, is a prospective randomized clinical trial with blinded outcome assessment being conducted at the Lyden University Medical Center.
The second study entitled Noninvasive, Vagus nerve stimulation in acute ischemic stroke, where notice is a prospective randomized clinical trial with blinded outcome assessment being conducted at the Leiden University Medical Center.
150 patients with a Schema stroke of being randomly allocated one to one to NVNH for five days in addition to standard treatment versus standard treatment alone.
150 patients with ischemic stroke or being randomly allocated one to one to N V and adds for five days. In addition to standard treatment versus standard treatment alone.
So, September 27, 2023, we announced the publication of two peer-reviewed publications supporting Gamma Korra, Indian S in Patients with Post-Traumatic Stress Disorder or PTSD.
On September 27, 2023, we announced the publication of two peer reviewed publications supporting gamma Cora in D&S in patients with post traumatic stress disorder or PTSD.
Both studies were conducted at Emory University and were published in the peer-reviewed Journal of Effective Disorder.
Those studies were conducted at Emory University and were published in the peer reviewed journal of affective disorders.
The first publication, Effect of Transcutaneous Cervical Vagus Nerve Stimulation on Declarative and Working Memory in Patients with Post Traumatic Stress Disorder, PTSD.
The first publication.
Fact of trans detainees cervical vagus nerve stimulation of undeclared isn't working memory in patients with post traumatic stress disorder or PTSD with.
was conducted under the direction of Dr. Bremner with the support of Emery Universe.
It was conducted under the direction of Dr. Bremner with the support of Emory University.
Georgia Institute of Technology and the Atlanta Veterans Affairs Medical Center and was sponsored by a Department of Defense Small Business Technology Trans.
The Georgia Institute of Technology, and the Atlanta Veterans Affairs Medical Center and was sponsored by the Department of Defense small business technology transfer grant.
The study suggested that transcutaneous vagus nerve simulation improves attention and declarative and working memory in patients with PTSD as measured by multiple end points.
The study suggested that trans Catania, vagus nerve stimulation improves attention and declare it isn't working memory in patients with PTSD as measured by multiple endpoints.
The second published peer reviewed manuscript entitled Transcutaneous Bagal Nurse Nimulation modulates stress-induced plasma-greylin levels, a double-blind randomized sham-concilled trial. Concluded to Transcutaneous Bagus Nurse Nimulation could reduce the levels of graylin in response to various stressful stimuli. Greta is a neuropeptide hypothesized to be involved in the stress response, if you recall.
Published peer reviewed manuscript entitled Trans detainees vagal nerve stimulation modulate stress induced classroom grantland levels, a double blind randomized sham controlled trial.
Included the Trans Catania, vagus nerve stimulation could reduce the levels of ghrelin.
In response to various stressful stimuli.
It is a neuropeptide hypothesized to be involved in this stress response, if you recall.
The FDA previously awarded prescription Gamma Core breakthrough designation to treat the symptoms of peak.
The FDA previously awarded prescription gamma core breakthrough designation to treat the symptoms of PTSD and both publications provide important data that may be leveraged as we work with the agency towards a five 10-K de novo clearance Cray PTSD indication.
and both publications provide important data that may be leveraged as we work with the agency towards a 5 10-K denoval clearance for a PTSD indicate.
On July 6, 2023, we announced that the NFL and NFL Players Association jointly awarded two grants to independent medical researchers at the American Society of Pain and Neuroscience ASPN 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.
On July six 2023, we announced that the NFL and that's the NFL players Association jointly awarded two grants the independent medical researchers at the American Society of pain, and 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.
The study is actively enrolling investigators and we'll continue to provide updates about the NFL and NFLPA study, our pipeline, and other opportunities in coming months.
He is actively enrolling investigators and we will continue to provide updates about the NFL and then F. L. P. A study our pipeline and other opportunities in coming months.
Now I'll turn the call over to Brian for a review of our financials and other guidance.
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 and its September 30th, 2023, Electrical reported net sales of $4.5 million, compared to $2 million during the same period of 2022, which represents an approximate rate 128% increase over the prior year.
Brian Thank you Dan.
For the quarter ended September 32023, electrical reported net sales of $4 $5 million compared to $2 million. During the same period of 2022, which represents an approximately 128% increase over the prior year.
The increase of $2.5 million is due to an increase in net sales across major channels, including the sale of our prescription gamma core devices in the U.S. and abroad, and revenue from the sales of our non-prescription general wellness Travega and taxed in brands.
The increase of $2 $5 million is due to an increase in net sales across major channels, including the sale of our prescription gamma core devices in the U S and abroad and revenue from the sales of our Nonprescription general wellness Tribeca and taxed in brands.
Total operating expenses in the third quarter of 2023 were approximately $8 million. That's compared to $7.3 million in the third quarter of 2022.
Total operating expenses in the third quarter of 2023, or approximately $8 million as compared to $7 $3 million in the third quarter 2022.
Research and development expense in the third quarter of 2023 was $1.2 million, as compared to $1.6 million in the third quarter of 2022.
Research and development expense in the third quarter of 2023 was $1 $2 million as compared to $1 $6 million in the third quarter 2022.
This decrease was due to a decrease in compensation associated with cost-cutting measures offset by our target investments to support the next generation of the company's non-invasive nerve stimulator.
This decrease was due to a decrease in compensation associated with cost cutting measures offset by our targeted investments to support the next generation of the company's noninvasive nerve stimulators.
Selling, General, and administrative expense in the third quarter of 2023 was $6.7 million as compared to $5.7 million in the third quarter of 2022.
Selling general and administrative expense in the third quarter, 2023 was $6 $7 million as compared to $5 7 million in the third quarter 2022.
This increase was due to greater variable selling and marketing costs consisting with our increase in net sales.
This increase was due to greater variable selling and marketing costs consistent with our increase in net sales.
Gap net loss in the third quarter of 2023 was $4 million compared to the $5.5 million net loss in the third quarter of 2022.
GAAP net loss in the third quarter of 2023 was $4 million compared to the $5 $5 million net loss in the third quarter of 2022.
Adjusted EBITDA net loss in the third quarter, 2023 was $3 million, as compared to a net loss of $4.8 million in the third quarter of 2022.
Adjusted EBITDA net loss in the third quarter of 2023 was $3 million as compared to a net loss of $4 $8 million in the third quarter of 2022.
A reconciliation of gap net loss to non-gap adjusted even a net loss has been provided in a financial statement tables included in today's press release.
A reconciliation of GAAP net loss to non-GAAP adjusted EBITDA net loss has been provided in the financial statement tables included in today's press release.
Cash, cash equivalents, and restricted cash as September 30, 2023 total to approximately $13.7 million as compared to approximately $18 million as of December 31, 2022.
Cash cash equivalents and restricted cash at September 32023 totaled approximately $13 $7 million as compared to approximately $18 million as of December 31 2022.
In July 2023, the company raised net proceeds of approximately $7.5 million through a registered direct offering and concurrent private placements priced at the market under Nasdaq rules.
In July 2023.
The company raised net proceeds of approximately $7.5 million through a registered direct offering and concurrent private placements priced at the market under NASDAQ rules.
Looking ahead.
For the full year 2023, we are increasing our net revenue guidance to $15 million to $15.5 million from $14 million to $15 million, representing more than 70% growth over 2022. Now I'll turn the call.
For the full year 2023, we are increasing our net revenue guidance to 15 million to $15 $5 million from 14 million to $15 million, representing more than 70% growth over 2022.
And now I'll turn the call back over to Dan.
Thank you, Brian . I am very proud of our third quarter, 2023 operating results. And with the continued momentum in our prescription headache business and strong balance.
Thank you Brian.
I am very proud of our third quarter 2023 operating results and with the continued momentum in our prescription headache business and strong balance sheet. We continue to be enthusiastic about the company's long term prospects across all brands and product lines.
We continue to be enthusiastic about the company's long-term prospects across all brands and products.
Pavega continues to show tons of potential as a direct to consumer general wellness off.
It continues to show tons of potential as a direct to consumer general wellness offering.
We've started with an e-commerce business model which will continue to be the focus and I look forward to launching a next generation app-enabled product platform next year.
We've started with an e-commerce business model, which will continue to be the focus and I look forward to launching a next generation App enabled product platform next year.
Our metrics remain strong through the first nine months of two Vegas sales. We will continue to monitor our KPIs and metrics and adjust our investment in all of our consumer channels as the year progresses.
Our metrics remained strong through the first nine months of two Vegas sales, we will continue to monitor our kpis and metrics and adjust our investments and all of our consumer channels as the year progresses.
Pipeline of interest from different branches of our active duty military continues to develop for our taxed and proff.
Our pipeline of interest from different branches of our active duty military continues to develop for our tax and products.
The tax in brand is likely to be lumpy as active duty units purchase involved for pilot deployment. Longer term, we also believe that there may be civilian crossover as first responders, elite athletes, transportation workers, traders, and e-gamers become aware of the human performance benefits published so far.
Taxane brand is likely to be lumpy as active duty units purchase involved for pilot deployment.
Longer term, we also believe that there may be civilian crossover as first responders elite athletes transportation workers traders and E gamers become aware of the human performance benefits published so far.
Demand for our prescription gamma core therapy in the 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 agent entities, representing about 60, 10 99 reps in the field managed but by our small.
Team of territory business managers and supported by our customer experience team.
Disgrowing number of sales agents continue to open new facilities and increase the number of orders coming from existing.
This growing number of sales agents continues to open new facilities and increase the number of orders coming from existing accounts.
Our sales and marketing expense increased by approximately $1 million in the third quarter of 2023 over the third quarter of 2022, while sales grew by $2.5 million.
Our sales and marketing expense increased by approximately $1 million in the third quarter of 2023 over the third quarter of 2022.
Sales grew by two and a half million dollars signaling signaling that there may be real leverage opportunities in the P&L.
Signalling, signaling that there may be real leverage opportunities in the P&L.
Further out, we're working toward establishing additional indications for prescription gamma core to treat post-traumatic stress disorder and or opioid use disorder. Look for new product launches in 2024 featuring our app-enabled technology that can provide digital help summons.
Further out we are working towards establishing additional indications for prescription gamma core they treat post traumatic stress disorder, and or opioid use disorder look for new product launches in 2024, featuring our App enabled technology that can provide digital health solutions.
That product platform will initially be launched in general while this with future uses and prescription indications as we ramp up our supply.
That product platform will initially be launched in general wellness with future uses and prescription indications as we ramp up our supply chain.
We see many potential growth drivers for the remainder of 2023 and 2024, including number one continued growth in our U S prescription headache business in both the V O D and commercial channels.
You see many potential growth drivers for the remainder of 2023 and 2024, including number one, continued growth in our U.S. prescription headache business in both the VA, EDOD and commercial champ.
Second, further development of the Trivega product line for general wellness, mental acuity, and sleep driven by ongoing consumer marketing efforts.
Second further development of the true Vega product line for general wellness mental acuity and sleep driven by ongoing consumer marketing efforts.
Number three, further development of a tax-bim brand for human performance in the active duty military and future civilian crossover.
Number three further development of a tax dim brand for human performance in the active duty military and future civilian crossover.
Number four, revenue to our distribution agreement with Jern's health care for the sale of prescription gamma core within a select managed care health system.
Number four revenues through our distribution agreement with <unk> health care for the sale of prescription gamma core within a select managed care health system.
Number five, our app enabled new product platform that will facilitate consumer facing digital health solutions and unlock new business models.
Number five our app enabled new product platform that will facilitate consumer facing digital health solutions and unlock new business models.
And number six, prescription Gamma Core label extensions into PTSD and OUD in 2024 and 2025.
And number six prescription gamma cord label extensions into PTSD and O U D in 2024 and 2025.
Finally, in 2023, we strengthened our balance sheet, our cash balance, along with increased revenue and consistent reduction in expenses, to provide us with enough runway to operate our business. At this time, I'll turn the call over to the operator. Operator, please open the line for questions.
Finally in 2023, we strengthened our balance sheet, our cash balance along with increased revenue and consistent reduction in expenses.
I'd us with enough runway to operate our business at this time I'll turn the call over to the operator operator. Please open the line for questions.
Thank you at this time, we will be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May Press Star two if you would like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the.
Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you want to.
So, participants use the speaker equipment and maybe necessary to pick up your handset before pressing the start.
Star Keys.
And our first question comes from the line of Jeff Cohen with Latinburg Diamond. Please proceed with your...
And our first question comes from the line of Jeff Cohen with Ladenburg Thalmann. Please proceed with your question.
Hi, thank you. This is actually destiny on for Jeff. Firstly, I'm starting to leave.
Hi. Thank you this is actually destiny on for Jeff.
Firstly essentially.
Hi, congratulations on a really strong quarter that was really wonderful to see in quite a beat, even for our models or with our models as well. I guess what I would like to start with is your increased guidance. Just want to kind of gauge, is that going to be?
Hi, congratulations on a really strong quarter that was really wonderful to see quite a bit even for our models with our models as well and I guess, what I would like to start with is your increased guidance just wanted to kind of gauge is that going to be.
mostly again driven by growth within the VA and DOD prescription channel. Or is that going to be a little more heavily weighted towards Truevega or taxed in? Can you just help me understand how that could look for the remainder of the year?
Mostly again driven by growth within the V I N T O D.
Prescription channel or is that going to be a little more heavily weighted towards true Vega or tax Dan can you just help me understand.
How that could work for the remainder of the here in Detroit.
Yeah, so the VA hospital system is our biggest number.
Yes, so look the VA hospital system is our biggest number so.
That's obviously where more of the dollar growth has to come.
But that's obviously where more of the dollar growth has to come from.
We're just, we're, you know, several weeks into the quarter. And we feel really good about that growth in the VA hospital system being consistent with the percentage growth that we've showed from sequentially for the last few quarters. But that would be the largest dollar contribution, even though it may not be the largest percentage contribution.
We're just.
We're several weeks into the quarter.
And we feel really good about that that growth in the VA hospital system being consistent with the percentage growth that we showed from sequentially for the last few quarters and that'll be the largest dollar contribution even though it may not be the largest percentage contribution.
The, um, um, Vega will be relatively flat because that's driven by our
The.
Tobago will be relatively flat because that's driven by our.
Advertising marketing spend.
We may do a black Friday promotion for example, but it's you know.
on a percentage basis, rather on a dollar basis, compared to our larger panels, it's not gonna be meaningful. A tax bin, we've got a lot of momentum there, so I think you'll see a solid percentage increase in that panel, and our UK business will continue to be and that's where it's made to high-teens growth.
On a percentage basis, rather on a dollar basis compared to a larger panels, it's not going to be a meaningful.
Oh Taxane are we've got a lot of momentum there. So I think you'll see a solid percentage of increase in that channel.
And our U K business will continue to be in that sort of mid to high teens growth.
Okay, got it. Thank you for that. And I guess maybe sticking with my question around like the DOD and VA channel, you noted 35 sales agents and about 60, 10, 99. How has that changed over the nine months in 2023 as compared to 2022? Can you just remind me? I don't think we had any in 2022.
Okay got it thank you for that and I guess, maybe sticking.
Sticking with my question around like the D. M. D. M. B a channel you noted 35 sales agents and about $62 99.
How is that changed over the nine months in 2023 as compared to 2022 can you just remind me I.
I don't think we had any in 2022.
Okay, perfect. So you've onboarded a lot of these this year, all of these this year. And how are you seeing the time from onboarding to revenue generation? How long are you seeing that take?
Okay perfect. So you've on boarded a lot of things this year already this year and how are you seeing the time from Onboarding to revenue generation, how long or anything that take typically.
So what happens is not so much a steady cadence, but rather...
So.
What happens is not so much.
A steady cadence, but rather.
20 to 30% of the folks that we enroll get it and bring relationships with them and become productive very quickly. And then the rest take either more time or they just don't cut it and we end up replacing.
20% to 30% of the folks that we enrolled.
Get it and and bring relationships with them and become productive very quickly.
And and then the rest take either more time or they just don't cut it and we ended up replacing them.
But the best situation is one in which we engage a...
But.
The best situation is one in which we engage a.
a sales agent who already has other product lines in a particular facility already has relationships in that facility and can turn on the business very quickly.
Our sales agent, who already has other product lines in a particular facility already has relationships in that facility and can turn on the business very quickly.
Okay, got it. I understand the strategy there. Maybe I'll transition over to a question on Trudega. I know you're holding Ag spend about the same. So revenue will likely be consistent. I'm just wondering what kind of KPI you're looking for or that you're trying to optimize before you ramp up that Ag spend a bit more.
Okay got it I understand the strategy there maybe I'll transition over to a question on true Vega I.
No you're holding AD spend about the same so revenue will likely be consistent and I'm just wondering.
What kind of Kpis, you're looking for or that you're trying to optimize before you ramp up that ad spend a bit more.
That's a very good question and that's a topic that we're working with the board on right now as we think through our budget for 2024. We're very happy as long as that media efficiency ratio stays.
That's a very good question and that's a topic that we're working with the board on right now as we as we think through our budget for 2024, we're very happy as long as that media efficiency ratio stays.
Comfortably above two we think that business scale very very nicely at anything above two we consistently been favorable to that metric and So now it's about convincing convincing the board to take the gloves off
Comfortably above two we think that business scale very very nicely at anything above two we've consistently been a favorable to that metric.
So now it's about convincing a convincing the board to take the gloves off.
Okay, go ahead. Thank you for that. All right, let me...
Okay got it thank you for that Alright, let me.
Let me ask just this one clarification, then I'll allow other questions because I'm definitely hogging the line. Did you say you added 362 new prescribers in Q3 alone? Did I hear that correctly? Yes, ma'am.
Let me ask just one clarification and then I'll allow other questions because I'm definitely hogging. The line did you say you added 362, new prescribers.
In Q3 alone did I think did I hear that correctly.
Yes ma'am.
Wow, okay. Well, I'll come back and see you. We're at your least. We're going to get on the street. Bring the brings more new names. Yes, love it. Perfect.
Wow, Okay, well I'll jump off.
More regulation more feet on the Street Greens.
<unk> brings more new names.
Yes love it perfect. Thank you.
Our next question comes from the line of Swam Bakula with 8C Wain Rate. Please for CWD.
Our next question comes from the line of swam a cooler with H C. Wainwright. Please proceed with your question.
Thank you. Good afternoon, Dan and Brian . Hi, okay, sorry, sorry about getting your name.
Thank you.
Good afternoon, Dan and Brian Okay.
Sorry about getting your name.
No, no, no, no, no, no, sorry, that's, that's, that's, it's better than something else.
Confused.
No no no that's fine.
It's better than something else.
[laughter].
So.
Looking at where you are, I'm looking at your guidance. So, you know, you are blocked about 10, 10.8 million for the nine months.
Looking at where you are.
Guidance.
So you know you.
Talked about 10 to $10 8 million for the nine months.
and then your guide lap between 15 and 15 and a half, let's say 15.3, that
And then are you.
Got it up.
Between 15, and 15 and a half, let's say for pinpoint and treat them that it's.
space flatish from here into the fourth quarter, but your commentary is otherwise. So what are we missing or why be timid?
It's flattish from here into the fourth quarter, but your commentary is otherwise.
What are we missing.
M a R y y be timid.
So.
Management is very bullish.
Management.
Is is very bullish.
Some of our advisors are urging cotton, but the biggest swing is the...
Some of our advisers are urging costing ah, but the biggest swing is the.
a tiny of revenue from the taxed in product line. We can trade. Which.
Timing of revenue from the tax skin product line.
Okay.
<unk>, which.
You know, while we've seen a steady cadence, I just want to be out of an abundance of caution. I want to be careful about the lumpiness.
While we've seen a steady cadence I just wanted to be out of an abundance of caution I want to I want to be careful about the lumpiness.
In that business.
Fair enough, make sense, no I understand why you didn't talk too much about the revenue expectation on the tax numbers.
Fair enough makes sense now I end up on why you didn't talk too much about the revenue expectations on the tax business.
for the fourth quarter, even though you're saying that you're expecting it to grow. So moving straight into tax, then obviously it looks amazing going from the second quarter to third quarter on that level new stream alone. But at the same time, you're also making the additional relationships from what I understand within the military services.
Fourth quarter.
Even though you're saying that you're expecting it to grow.
So good morning.
Planning to attack them, obviously looks amazing going from the second quarter.
On on that revenue stream alone.
But at the same time, you're also making additional relationships from what I understand and then the luxury purposes.
plus the tax in 2.2.
Plus the tax them to a point, though hum.
So.
And with the new budget year started in September . Right, so. Right. All right.
Yeah.
With the new budget deal started in September.
Right so right.
All right.
I know you don't want to say anything quantitative, but qualitatively, where are the discussions in terms of how things are projecting for yourselves?
I know you don't want to say anything quantitative, but qualitatively where are the discussions in terms of how how things are projecting for yourselves.
into the new fiscal year, which starts from September . And also the additional comments I would like to hear is on taxed in 2.0. How much can you talk to us about?
Into the new physical yard, which starts from September and also the additional commentary I would like to hear is on taxes and two point, though.
How much can you talk to us about.
Not only the development but the potential deployment and where could it go, you know, in what places could it go.
Not only the development, but the potential deployment and where could it go.
And what places critical.
It's a great question, RK. And I'm going to give you two answers. The special operators, the actual folks who are using it are very excited, are very supportive, and are looking to deploy rapidly.
It's a great question RK.
And I'm going to give you two answers.
The special operators, the actual with folks who are using it.
We are very.
Are very excited are very supportive.
And and are looking to deploy rapidly.
the back row government.
The <unk>.
Back row.
Government shutdown silliness.
is out of everybody's hands and is an issue.
I mean.
Is out of everybody's hands and is an issue.
Okay I did that.
Okay.
And then the 2.2. So what do you, you know, radio envision this moving forward? Or is that also dependent on start and stop of the ground?
Okay Alright.
And and then the two point, though so what are you.
And now where do you envision this moving forward or is that also dependent on stock on top of the government.
So a little bit of both, we've delivered a significant number of pre-production prototypes.
So a little bit of both.
We delivered a significant number of preproduction prototype.
to Air Force research laboratories primarily, and then a couple to Army Special Forces.
Two Air Force Research Laboratory is primarily and then a couple two army special forces.
they are doing their evaluations. They're...
They are doing their evaluations there.
The preliminary informal anecdotal is very, very exciting and supported. Most likely they'll come back with a punch list of, you know, make it a little bit bigger, make it a little bit rounder. But we don't see any...
The preliminary informal anecdotal is a is very very exciting supported.
Most likely they will come back with a.
A punch list of make it a little bit bigger make it a little bit rounder.
But we don't see any.
I'm highly confident that there won't be any significant changes to the design and that we're going to be able to move quickly into pilot production.
I'm I'm highly confident that there won't be any significant changes to the design and that we're going to be able to move quickly into pilot production.
Okay great.
Now.
Hum.
In terms of.
Yeah.
I lost my train of thought. In terms of the Jones healthcare, you said you got a small bit of revenue in the third quarter. Do you think by this time you got all the kinks out of the system in terms of not only the paperwork, but also the general flow through of...
Sorry, I lost my train of thought in terms of the Jones Health care you know.
You said you got.
A small bit of revenue in the third quarter or do you think by this time you got all the Kinks out of the system in terms of not only the paperwork, but also that's been.
The general slowed through.
Of the procedures necessary.
of the procedures necessary for deployment. Yeah, so the back off is...
Hum for deployment.
Yeah, So the back office.
Is working as smoothly as well.
it will and that was really the time-consuming piece of this.
As it will and that was really the.
Time consuming piece of this.
Currently, we are actively recruiting champions in different facilities along the West Coast.
Currently we are actively recruiting champions in different in different facilities.
Along the West coast.
Those champions will start off with a three month or six month prescription on select patients.
Those champions, you'll we'll start off with a three month or six month prescription on select patients.
As they start to have success with those patients, they start calling their colleagues, they open the doors for us to talk to other departments, and of course they start prescribing for larger numbers of their patients. It's a very similar...
As they start to have success with those patients they start telling their colleagues they open the doors for us to.
Talk to other departments and of course, they start pushing scribing for larger numbers of their patients. It's a very similar.
cadence to what we do in the VA hospital system, where there's a lot of effort that goes into opening up a new facility. And then once we have a champion or two, we can drive broader adoption within that facility.
Cadence.
What we do in the VA, the VA hospital system, where.
There's a lot of effort that goes into opening up a new facility and then once we are once we have a champion or two we can drive broader adoption within that facility.
one way that I like to think about it in 2020.
One way that I like to think about it in 2020.
was our first full years of sales.
<unk> was our first full years of sales.
in the VA hospital system. And I think we did 1,751.8 million in revenue in the VA hospital system in 2020. And so I think that's a reasonable goal for the Durant Health Care opportunity in 2024.
In the VA Hospital system, and I think we did a $1 million $751.8 million in revenue in the VA Hospital system in 2020.
So I think that's it that's a reasonable goal for the insurance health care opportunity in 2024.
Great, thanks. One last question from me. Just as you spoke about MER and MER of 2.0 Online delivering on the Turega.
Okay. Thanks.
Well one last question for me.
Just as you spoke about M E R and M. We are off to find online and delivering on the trigger.
Is there a similar metric for the VA hospital system because you've been in this streamlined book or just as you said, about four plus years now, or almost four years now? And what is, I understand COVID came and screwed us all up.
Is that a similar metric for the VA Hospital system, because you have been in this streamlined.
Oh I'm, sorry, I just had just said about four plus years now almost four years now.
And what this I understand Covid caymans kudos all up Hum.
What is the thing that can ignite that growth? Because as you said, you are only one percent penetration into the market.
What is the what is the thing that can ignite that growth.
Got you I just had.
1% penetration into that market.
Yeah, so the marketing advertising spend in the, in either the VA hospital system or the endurance relationship,
Yeah. So.
The marketing advertising spend in the in either the VA hospital system or the insurance relationship.
Is very small.
The variable expense is overwhelmingly commission.
The the variable expense is overwhelmingly commissions.
Oh, Okay, and what drives adoption is.
and what drives adoption is feed on the street.
Feet on the street.
It's not very elegant, but you've seen that auto-log went over again in MedTek.
Not not very elegant, but you've seen that at all over and over again in med Tech.
Yep, yep, okay. Okay, so do you think that the money that you raised, will that go into that feed on the street more to help that, or is this more for making ensuring operations, the operations as they are?
Yeah Okay.
Okay.
Do you think that the money that you raised.
Will that go into that feed on that on the on the street more to help that or is this more for making ensuring operations.
Operations as they are right now yeah, so you'll see a steady increase in our sales and marketing expense either because we're spending money to drive advertising through Vega or because our commissions are going up.
Yeah, so you'll see a steady increase in our sales and marketing expense either because we're spending money to drive advertising for Kuvega or because our commissions are going up tied to hospital sales revenue.
Tied to.
Hospital sales revenue.
Okay perfect.
It does a great quarter and I'm sure things are going to get better from here. Thank you. We're, thank you. We think it was a great quarter as well.
It was a great quarter and I'm I'm sure things are going to get look better from here.
Sure.
We think it was a great quarter as well.
Yes.
And our next question comes from the line of Nick Sherwood with Maxim Group LLC. Please proceed with your question.
our next question comes in the line of Neb Sherwood with Maxim Group LLC.
Congrats on the quarter. I just you know first question. How do the Travega and tax-dem gross margin is compared to the prescription business?
Congrats on the quarter I just yeah, just first question and how does the Vega and taxed in gross margins compared to the prescription business.
So we haven't been getting out that granular data. Our pricing in the prescription business is
So we haven't been giving out that that granular data.
Of our pricing in the prescription business.
Is significantly higher.
So you can connect the dots from there. Thank you.
So.
Can you can connect the dots from there.
Mhm.
Okay.
And then.
Kind of switching gears.
Keep providing any color on the distribution agreement with the relief band.
Can you provide any color on the distribution agreement with where we stand.
Yeah, so we've had to, we've chosen rather to press pause on that relationship. Our business is growing so quickly in the VA hospital system. We just ourselves guys just don't have the bandwidth to really get fully trained up on that new product line. So I look forward to returning our attention to that in 2024, but we've got to take care of our...
Yeah, So we've had to.
We've chosen rather too to press pause on that relationship and our business is growing so quickly.
The VA hospital system.
We just our sales guys just don't have the bandwidth to to really get fully trained up on that new product lines. So.
I look forward to returning our attention to that end in 2024, but.
Hmm.
You got to take care of our own house first.
understandable. And then another question, what sort of response did you see in with your partnership with the NFL for this season? The concussion had a pain study. They won't tell us the damn thing.
Understandable.
And then another question Oh, what sort of response have you seen with your partnership with the NFL through the season, the concussion headache pain study.
They won't tell us a damn thing.
[laughter].
[laughter], Okay sorry.
Sorry to hear that. I keep hoping to get something to plug into my fantasy football team and they won't tell me. Yeah, I won't tell you if Josh sounds using it. Is it anything far? Well, those are all my questions. And I'll get back in that. Thank you. Thank you. Thank you. Our next question comes.
Sorry to hear that.
I keep hoping to get something to plug into my fantasy football team when they won't tell me [laughter] yeah, Yeah. They would tell you if.
Josh sounds using that to shortcut anything or.
All my questions I'll get back in there.
Thank you Matt.
Thank you.
Our next question comes from the line of Walter Schenker.
Tanker with mass partners. Please proceed with your question.
Hi, Dan.
Hi, Walter how are you today.
It's very point, I guess, eventually the answer, where in the VA system.
In theory point.
I guess eventually is the answer.
In the VA system.
You have enough penetration.
Somebody higher up near the top says if it's good for 10, 15 20, 25% of hospitals.
And maybe you need a champion.
Really want to roll this out across the whole system. If we're having very good results, where you expect it's just going to be.
Adding hospitals every quarter for the rest of our lives till we get through the whole system.
So that's a very good question.
So that's a very good question. I'd love to believe that there is a...
I'd love to believe that there is a.
higher level policy making entity within the VA system.
A higher level of policymaking and.
Entity within the VA system.
It hasn't been my experience in other businesses, but we can certainly hope. The VA Hospital Administration is divided up into, I believe it's 17 or 18, Visions, B-I-Z-N-S.
It hasn't been my experience in other businesses, but.
We can we can certainly hope.
The VA Hospital administration is divided up into I believe it's 17 or 18 visions B I Z N S.
And it is more likely that there could be a vision level. So.
And it is more likely that there could be a decent level.
So yeah.
In other words, a regional level policy decision.
In other words, a regional level.
Policy decision.
In parallel, the VA Hospital Administration has something called a Fed-Age vendor of excellence in HCOA, which is at a national level.
In parallel our the VA Hospital administration has something called a.
Headache standards of excellence in H C O E, which is at a national level.
and they have written Gamma Corps into their neuromodulation headache policy.
And and they have written gamma core into their.
Neuromodulation headache policy.
But I don't know exactly what it says. And I'd love to know more, but I keep the neck.
But I don't know exactly what it says and I.
I'd love to know more but yeah.
Keeping that close to their chest.
Okay, and on a related, vaguely related question, as you move forward to taxing and DOD, DOD...
Okay.
On a related gateway related question.
As you.
Move forward.
Tax Sim and D O D.
Yeah.
You are now.
are in a few, okay? I'm just trying to get some senses to, you know, I can sort of look at the metric on VA and say this penetration is X.
Or in a few okay I'm, just trying to get some sense as to if.
I can sort of look at the metric on.
VA and say this our penetration is X.
On DOD for high performance applications, you still are in just a very, very small percentage of the potential, as I'm putting all soldiers all, everyone in the military. In the high performance area, you are still in just a few select locations.
On D O D for high performance type applications.
So just go ahead Joe.
A very very small percentage of the.
I mean is it puts all soldiers all everyone in the military.
High performance area you are still in just a few select locations.
Exactly right where we are in pilot deployment with a few air ports, special units and a few army special forces unit.
Exactly right, where we are in pilot deployment with.
You Airport, especially units and if you Army special forces DNA.
And then we've deployed one or two demonstration devices in other places. The total addressable market is roughly 3 million active duty personnel within the Army Navy, Marines, Air Force, and Coast Guard.
And then we've we've deployed one or two.
Demonstration devices are in other places the total addressable market.
Is roughly 3 million active duty personnel within the Army Navy Marines.
Of course in Costar.
And but then beyond that, we think there's going to be civilian crossover to first responders, to lead athletes, so the total addressable market. If you start to think about it in the context of civilian crossover or NATO allies.
And but then you'll beyond that we think theres going to be civilian crossover to first responders to elite athletes so that the total addressable market.
If you start to think about it in the context of civilian crossover or NATO allies.
The total number keeps getting bigger and bigger. The total opportunity rather gets bigger and bigger.
The total number keeps getting bigger and bigger the total opportunity rather it gets bigger and bigger.
Okay, and lastly, I think we discussed this slightly once before in the VA hospital.
Okay, and lastly, I think we discussed this.
We once before.
The VA hospital.
You had mentioned before we're opening up in some of these hospitals to more departments.
You had mentioned before we are opening up in some of these hospitals for more departments.
Do you have the sense anecdotally that people are using it outside of headache as they're seeing, you know, just general anxiety stress, leaping a lot of other benefits that probably are accruing to the people who are using it?
Do you have the sense anecdotally that people are using it.
Outside of headache.
They're seeing just general anxiety stress sleeping a lot of other benefits that probably you're accruing to the people who are using it.
So absolutely, you know, we start off in neurology where the headache specialist live. We spend a lot of time in pain management. We spend a lot of time in behavioral health where we talk about headache in depression, headache in PTSD, headache in substance.
So absolutely yeah, we started off in a in neurology, where the headache specialists are live.
We spend a lot of time in pain.
Pain management, we spend a lot of time in behavioral health where.
We talk about headache, and get crushing headache in T. T S D.
Headache in substance abuse.
Women's health is a call point. More and more of the VA hospitals have a general wellness department, frankly.
Women's health is a call point more and more of the VA hospitals.
They have a general wellness.
Departments frankly.
Frankly.
And then ultimately we get into primary care as well, where they see headache, where they see stress and anxiety and on and on. So.
And then ultimately we get into primary care as well, where they see headache, where they see stress and anxiety and on and on so.
As word gets out, we just have more and more call points within each facility. Okay, thank you, Dan. Thank you, Walter.
As word gets out we just have more and more call points within each facility.
Okay. Thank you Dan.
Thank you Walter.
And it looks like we have reached the end of the question and answer session. I will now turn the call back over to CEO, Dan Goldberg for closing remarks.
Thank you, operator, and thank you, everybody, for joining our call. I want to give special thanks to all of our employees who were tirelessly to deliver this amazing therapy to patients.
Thank you operator, and thank you everybody for joining our call.
I want to give special thanks to all of our employees, who worked tirelessly to deliver this amazing therapy to patients.
Team's done a great job of staying nimble, galing the business and responding to the needs of our customers and healthcare providers alike. I also wanna thank healthcare professionals and their patients for their loyal supported gamma.
The team has done a great job of staying nimble scaling the business and responding to the needs of our customers and healthcare providers alike.
I also want to thank health care professionals and their patients.
For their loyal support of Gamma court therapy with.
We're thankful for the support of AFRL, NIDA, the National Institute on Drug Abuse.
We're thankful for the support of <unk>.
A S R L. Neither the National Institute on drug abuse.
the NFL Players Association for supporting our new product initiatives and working on those grants for investigator initiated trials. And of course, Veterans Day is coming up. And so we greatly appreciate your service for those of us, for those of you who are participating in Veterans Day activities. Thank you all, and we look forward to speaking with you again in a few months.
El players Association for supporting our new product initiatives and working on those grants for investigator initiated trials and and of course veterans day is coming up and so we greatly appreciate your service for those of US for those of you who are participating in veterans day activities.
Thank you all and we look forward to speaking with you again in a few months.
And this concludes today's conference and you may disconnect. Your lines at this time. Thank you for your participation.
The.
Yeah.
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