Q4 2024 electroCore Inc Earnings Call

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This conference call contains time sensitive information that is accurate only as of the live broadcast today March 12 2025.

Speaker: This conference call contains time sensitive information that is accurate only as of the live broadcast today, March 12th, 2025.

Speaker Change: For those of you who may be new to our company electrical was founded in 2005 to commercialize the use of our proprietary noninvasive vagus nerve stimulation for medical and general wellness applications.

Dan: For those of you who may be new to our company, electroCore was founded in 2005 to commercialize the use of our proprietary non-invasive 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. Stimulating the vagus nerve affects 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 epilepsy and depression. So large and growing database confirms the safety and efficacy of the check.

Speaker Change: The vagus nerve is the largest cranial nerve in the body, bringing information from the visceral organs to the brain stimulating.

Speaker Change: Stimulating the vagus nerve effects, many important autonomic functions in the brain and in Nevada.

<unk> neurotransmitter levels inflammation levels and metabolism.

Speaker Change: Surgically implanted vagus nerve stimulators had been available from other companies for more than 40 years for chronic conditions like epilepsy and depression, so large and growing database confirms the safety and efficacy of the technique.

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 and human performance.

Dan: Building on that science, electroCore 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 and human performance. Our pipeline of possible indications and products continues to grow as clinicians, researchers and wellness advocates conduct investigator-initiated trials to advance the benefits of non-invasive vagus nerve stimulation. We've demonstrated rapid growth for several years, resulting in a five-year compound annual growth rate of approximately 60%. Revenue for 2024 was $25.2 million, up 57%. In the fourth quarter, we recorded revenue of $7 million, our ninth consecutive record revenue quarter, and a 36% increase over the fourth quarter of the prior year.

Speaker Change: Our pipeline of possible indications in products continues to grow as clinicians researchers and wellness advocates conduct investigator initiated trials to advance the benefits of noninvasive vagus nerve stimulation.

We've demonstrated rapid growth for several years, resulting in a five year compound annual growth rate of approximately 60%.

Speaker Change: Revenue for 2024 was $25 $2 million up 57%.

Speaker Change: In the fourth quarter, we recorded revenue of $7 million, our ninth consecutive record revenue quarter, and a 36% increase over the fourth quarter of the prior year.

Dan: Total revenue, excluding taxed in, increased by 68% for the year, and increased 44% in the fourth quarter. Full year gross margins were 85% as compared to 83% last year, and we narrowed our net loss by 37% for the year. We expect our gross margins to remain in the mid-80s in spite of the trade policies currently being implemented by the new administration. Our supply chain does not currently involve geographies subject to the recent tariff news, and we continue to work on mitigating any impact on our supply chain.

Speaker Change: Total revenue excluding tax Jim increased by 68% for the year and increased 44% in the fourth quarter.

Speaker Change: Okay.

Speaker Change: Full year gross margins were 85% as compared to 83% last year, and we narrowed our net loss by 37% for the year.

Speaker Change: We expect our gross margins to remain in the mid Eighty's in spite of the trade policies currently being implemented by the New administration.

Speaker Change: Our supply chain is not currently involved geographies subject to the recent tariff news and we continue to work on mitigating any impacts on our supply chain.

Dan: We're making progress towards positive cash flow from operations and gap profitability as revenue increases, gross margins hold steady, and we maintain discipline around operating.

Speaker Change: We're making progress towards positive cash flow from operations and GAAP profitability as revenue increases gross margins hold steady and we maintain discipline around operating expenses, Josh will discuss the financials in more detail later in the call.

Dan: Josh will discuss the financials in more detail later in the call. We launched our U.S. prescription headache business in 2017 selling primarily to specialty pharmacies. Since then, our prescription headache business has grown worldwide, including sales that are covered by national health systems, such as the VA hospital system in the United States and the National Health Service, or NHS, in the United Kingdom. Cash pay sales through prescriber professional challenge. and through certain managed care systems in the United States. We currently have about 30 million covered lives in the U.S., and we look forward to creating more access in the future.

Speaker Change: We launched our U S prescription headache business in 2017, selling primarily to specialty pharmacies.

Speaker Change: Then our prescription headache business has grown worldwide, including sales that are covered by national health systems, such as the VA Hospital system in the United States and the National Health service or NHS in the United Kingdom cash pay sales group Prescriber professional challenge.

Speaker Change: And through certain managed care systems in the United States.

Speaker Change: We currently have about 30 million covered lives in the U S and we look forward to creating more access in the future.

Speaker Change: Cash pay patients can often use their HSA FSA accounts, if they do not currently have insurance benefits.

Dan: Cash pay patients can often use their HSA FSA accounts if they do not currently have insurance benefits.

Speaker Change: We launched two new Nonprescription general wellness product lines in 2023.

Dan: We launched two new non-prescription general wellness product lines in 2023. Trivega is a direct-to-consumer health and wellness brand, and TacStim is directed towards human performance for active-duty military personnel. The VA hospital system continues to be our largest customer. GammaCore Prescription Therapy is free to patients covered by Veterans Administration Benefits, representing about 9.1 million covered lives across approximately 1,300 healthcare facilities. Sales in the VA channel grew 85% to $17.8 million in the full year ended December 2024 from $9.6 million in 2023. Sales in the VA channel grew 47% to $4.6 million in the fourth quarter of 2024 from $3.1 million during the fourth quarter of 2023.

Speaker Change: <unk> is a direct to consumer health and wellness brand and Taxane is directed towards human performance for active duty military personnel.

Speaker Change: The VA hospital system continues to be our largest customer gamma.

Speaker Change: Gamma core prescription therapy is free to patients covered by veterans administration benefits, representing about $9 1 million covered lives across approximately 1300 healthcare facilities.

Speaker Change: Sales in the VA channel grew 85% to $17 8 million in fiscal year ended December 2020 core from $9 $6 million in 2023.

Speaker Change: Sales in the VA channel grew 47% to $4 $6 million in the fourth quarter of 2024 from $3 $1 million during the fourth quarter of 2023.

Dan: 170 VA facilities have purchased prescription GammaCore products through December 31, 2024, as compared to 147 through December 31, 2023. The VA Hospital Administration Headache Centers of Excellence estimates approximately 600,000 patients are being treated for headache in the VA hospitals. including approximately 24,000 cluster headaches. We continue to make our therapy available either through our Federal Supply Schedule contract or via our distribution partnership with Lubbock Government Services. Since 2022, we've dispensed GammaCore devices to approximately 8,500 veterans leveraging these contracting methods. representing approximately 1.5% of the total addressable headache market within the VA system.

Speaker Change: 170, <unk> VA facilities have purchased prescription gamma core products through December 31, 2024, as compared to 147 through December 31 2023.

Speaker Change: Okay.

Speaker Change: The VA Hospital administration headache centers of excellence estimates approximately 600000 patients are being treated for headache in the VA Hospital system <unk>.

Speaker Change: Including approximately 24000 cluster headache nations.

Speaker Change: We continue to make our therapy available either through our federal supply schedule contract or a V or a distribution partnership with level government services.

Speaker Change: Since 2022, we've dispensed gamma core devices to approximately 8500 veterans leveraging these contracting mechanisms representing approximately one 5% of the total addressable headache market within the VA system.

<unk> is positioned as a direct to consumer general wellness product prestress relaxation quality of sleep and mental acuity.

Dan: Truvega is positioned as a direct-to-consumer general wellness product for stress, relaxation, quality of sleep, and mental acuity. For the year ended December 2024, Truvegan net sales were $2.8 million, a 174% increase over 2023. In the fourth quarter of 2024. Trudeau net sales were approximately $1.2 million, a 271% increase from the fourth quarter of 2023. Our revenue return on advertising spend was approximately $2.7 for the full year 2024 and $2.99 for the fourth quarter of 2024. In other words, during 2024, for every $1 we spent on media, we generated $2.70 of revenue. Our fourth quarter metric of 2.99 increased in part because of seasonal purchases associated with the holidays.

Speaker Change: For the year ended December 2020 for true vegan net sales were $2 8, million% to 174% increase over 2023.

Speaker Change: In the fourth quarter of 2024.

Speaker Change: <unk> net sales were approximately $1 2, million% to 271% increase from the fourth quarter of 2023.

Speaker Change: Our revenue return on advertising spend was approximately 2.7 for the full year 2024, and $2 99 for the fourth quarter of 2024.

Speaker Change: In other words during 'twenty 'twenty four for every one dollar we spent on media we generated $2.70 of revenue.

Our fourth quarter metric of 2.99 increase in part because of seasonal purchases associated with the holidays.

Dan: Trivega return rates remain steady at approximately 11 to 12% of shipments for the full year and fourth quarter 2024. Since launching TrueVega, we've sold more than 11,500 handsets, and customers have conducted approximately a half a million sessions using the mobile app. We believe that the Truvega business will continue to scale if we can maintain or improve these metrics. Most of our Truvega revenue comes through our e-commerce platform, www.truvega.com. Following the successful launch of Truevega Plus in April 2024, we began exploring additional channels to reach consumers, including influencers, affiliates, and resellers. Earlier this year, we launched on the Perks at Work platform, which boasts 30 million users globally across 90,000 companies, representing 70% of the Fortune 1,000.

Speaker Change: <unk> return rates remained steady at approximately 11% to 12% of shipments for the full year and fourth quarter 2024.

Speaker Change: Since launching <unk>, we sold more than 11500 handsets and customers have conducted approximately a half a million sessions using the mobile app.

Speaker Change: We believe that the true beta business will continue to scale, we can maintain or improve these metrics.

Speaker Change: Most of our true Vega revenue comes through our E Commerce platform Www Dot <unk> Dot com.

Speaker Change: Following the successful launch of true data plus in April 2024, we began exploring additional channels to reach consumers, including Influencers affiliates and resellers earlier. This year, we launched on the perks at work platform, which boasts 30 million users globally across 90000 companies representing 70 per.

Speaker Change: <unk> of the Fortune 1000.

Dan: In February 2025, we launch Truevega Plus on Amazon. For the full year ended December 31, 2024, we recorded $1.2 million of taxed in sales as compared to $1.7 million during the same period last year. PACSIM for Human Performance is being sold to select Air Force 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. We have a growing sales funnel for TaxSim, but the DOD acquisition process is opaque and lengthy. Revenue from this product line will be hard to predict as active duty units purchase in bulk for pilot deployments.

February 2025, we launched two giga plus on Amazon.

For the full year ended December 31, 2024, we recorded $1 $2 million of taxes sales as compared to $1 $7 million during the same period last year.

Speaker Change: Taxane for human performance is being sold to select the Air Force and Army Special forces units for accelerated training sustained attention reduce fatigue and improves mood as defined by the Air Force Research laboratory or <unk>.

Speaker Change: We have a growing sales funnel for taxane, but the Doj acquisition processes opaque and lengthy.

Speaker Change: Revenue from this product line will be hard to predict as active duty units purchased in bulk for pilot to Portland.

Dan: excuse me, for pilot deployment.

Speaker Change: Excuse me for a pilot deployment.

Speaker Change: Our U S prescription gamma core channel recorded revenue of one and a half million dollars during the full year 2024 down 15% from 2023.

Dan: Our U.S. prescription GammaCore channel recorded revenue of $1.5 million during the full year of 2024, down 15% from 2023. There were 2,600 cumulative revenue-generating cash pay prescribers as of December 31, 2024, up from 1,840 on December 31, 2021. As expected, some of these customers have migrated to the Truvega brand as awareness grows, and we continue modeling flat revenue from this category for the time being. Ninety-two new Trivega Plus partners, including 32 GammaCore customers, have added the Trivega product line to their account. Last year, we announced the distribution agreement with Jerns Healthcare LLC that gives us access to a certain managed care health Approximately 30 prescribers have written GammaCore in this channel and we are now processing one or two prescriptions per month.

Speaker Change: There were 2600 cumulative revenue generating cash pay prescribers as of December 31, 2024 up from 1840 on December 31 2023.

As expected some of these customers have migrated to the true Vega brand as awareness grows and we continue modeling flat revenue from this category for the time being.

Speaker Change: 92 neutral Vega, plus partners, including 32 Gamma core customers have added the true Vega product line through their accounts.

Speaker Change: Last year, we announced the distribution agreement with Jounce healthcare LLC that gives us access to a certain managed care health system.

Speaker Change: Approximately 30 prescribers have written gamma core in this channel and we are now processing of one or two prescriptions per month.

Speaker Change: I remain optimistic that we are slowly gaining awareness and traction and adoption will come over time.

Dan: I remain optimistic that we are slowly gaining awareness and traction, and adoption will come over time. Revenue from channels outside the United States of $1.9 million for the full year ended December 31, 2024 were flat as compared to $1.8 million for the full year ended December 31, 2023. Most of our OUS revenue continues to be generated by the United Kingdom by prescriptions, gamma core sales funded by NHS, and we model flat revenue from this category for the time being.

Speaker Change: Revenue from channels outside the United States of $1 $9 million for the full year ended December 31, 2024 were flat as compared to $1 $8 million for the full year ended December 31 23.

Speaker Change: Most of our O U S revenue continues to be generated by the United Kingdom by prescriptions Gamma core sales funded by NHS and we modeled flat revenue from this category for the time being.

Speaker Change: Now I'll turn to our business development activities.

Dan: Now, I'll turn to our business development activity. In December 2024, we announced that electroCore has entered into definitive agreement to acquire Neuromechanics. Giving us access to the QWEL platform and accelerating our mission to become the clear leader in the bioelectronic health and wellness sector. The markets we are pursuing are massive. U.S. consumers spend nearly $20 billion annually out of pocket for chronic pain treatment. It's estimated that approximately 6% of U.S. adults suffer from fibromyalgia, and there are a few credible treatment options available today.

Speaker Change: In December 2024, we announced that electric core has entered into definitive agreement to acquire neuro metrics.

Speaker Change: It's access to the core platform and accelerating our mission to become the clear leader in the bio electronic health and wellness sector.

Speaker Change: The markets, we are pursuing a massive.

U S consumers spend nearly $20 billion annually out of pocket for chronic pain treatments.

Speaker Change: It is estimated at approximately 6% of U S. Adults suffer from fibromyalgia and there are few credible treatment options available today.

Dan: The acquisition is on track to close in the second quarter of 2025. Neurometrics is a publicly traded company on NASDAQ under the ticker NURO. Neuro is a commercial-stage, non-invasive, bioelectronic health and wellness company with two product categories. QWEL, a wearable app and cloud-enabled neuromodulation platform that is indicated for the treatment of fibromyalgia symptoms, known as QWEL-Fibromyalgia, and lower extremity chronic pain, QWEL 2.0. And separately, the DPN check, a point-of-care screening test for peripheral neuropathy. Our focus for this transaction is to accelerate the commercialization of the prescription-quelled fibromyalgia product to our existing sales channels, especially the VA hospital system in the United States.

Speaker Change: The acquisition is on track to close in the second quarter of 2025.

Speaker Change: Neuro metrics as a publicly traded company on NASDAQ under the ticker and U R O.

Speaker Change: Euro is a commercial stage noninvasive bioelectronics health and wellness company with two product categories.

Speaker Change: <unk>, a wearable app and cloud enabled neuromodulation platform that is indicated for the treatment of fibromyalgia symptoms known as quell fibromyalgia.

Speaker Change: And lower extremity chronic pain quote to point out.

Speaker Change: And separately, the GP and check a point of care screening tests for peripheral neuropathy.

Speaker Change: Our focus for this transactions to accelerate the commercialization of the prescription <unk> fibromyalgia product to our existing sales channels, especially the VA hospital system in the United States.

Dan: In addition, we believe there are future opportunities to leverage and expand the Qwell mobile application and health cloud platform for existing and future electroCore products.

Speaker Change: In addition, we believe there are future opportunities to leverage and expand the club mobile application and health cloud platform for existing and future electric core products the.

Dan: The combination of Getmacor and Clofibromyalgir creates a diversified advanced portfolio of prescription products for non-invasive and non-pharmaceutical treatment of chronic. In the future, Quell 2.0 for lower extremity pain may be added to our non-prescription, direct-to-consumer brand. This acquisition may enhance our ability to become the clear leader in the bioelectronic health and wellness sector. Coil fibromyalgia is a prescription non-invasive neurostimulation device, a similar approach to electroCore's products. Qualfibromyalgia is FDA-authorized, covered by 27 issued U.S. utility patents and Neurometrics invested more than 10 years and tens of millions of dollars in clinical work and product development. Coil fibromyalgia provides flexible, precise, high-powering air stimulation in a form factor the size of a credit card.

Speaker Change: The combination of getting a core and quote fibromyalgia. It creates a diversified advanced portfolio prescription products for non invasive and non pharmaceutical treatment of chronic pain.

Speaker Change: And the future quell two point oak lower extremity pain may be added to our non prescription direct to consumer brands.

Speaker Change: This acquisition may enhance our ability to become the clear leader in the bio electronic health and wellness sector.

Speaker Change: Coil carbon myalgia as a prescription noninvasive nerve stimulation device similar approach to electric course product suite.

Speaker Change: Fibromyalgia is FDA authorized covered by 27 issued U S utility patents and Neurometrics invested more than 10 years and tens of millions of dollars in clinical work and product development.

Speaker Change: Qualified from Alger provides flexible precise high powered nerve stimulation in a form factor the size of a credit card.

Speaker Change: We're excited about the acquisition of Euro metrics and are confident that we can leverage our established distribution channels, especially the VA hospital system to accelerate adoption of the <unk> fiber myalgia solution.

Dan: We're excited about the acquisition of Neurometrics and are confident that we can leverage our established distribution channels, especially the VA hospital system, to accelerate adoption of the QUEL fibromyalgia solution.

Dan: More information about neurometrics can be found at www.neurometrics.com.

Speaker Change: More information about our metrics can be found at www dot neuro metrics dotcom.

Speaker Change: On February 27, 2025, and subsequent to the end of the fourth quarter, we announced the distribution agreement with spark biomedical, giving us access to the sparrow with St product line and FDA cleared noninvasive transportation, a regular neuromodulation device available by prescription for the treatment of opioid withdrawal.

Dan: On February 27, 2025, and subsequent to the end of the fourth quarter, we announced a distribution agreement with Spark Biomedical, giving us access to the Sparrow Ascent product line, an FDA-cleared, non-invasive, transcutaneous auricular neuromodulation device available by prescription for the treatment of opioid withdrawal symptoms. We plan to offer Sparrow in a limited number of VA hospital sites beginning in the second quarter of 2025. If successful, we hope to expand distribution later this year. We believe the total addressable market in the United States for Sparrow is $2.4 billion associated with opioid detox and another $3.7 billion in relapse prevention.

Speaker Change: Symptoms.

Speaker Change: We plan to offer Spero and a limited number of VA hospital sites beginning in the second quarter of 2025.

Speaker Change: If successful we hope to expand distributions later this year.

Speaker Change: We believe the total addressable market in the United States for Spero is $2 $4 billion associated with opioid detox.

Speaker Change: And another $3 $7 billion in relapsed prevention.

Dan: More information on SPARK Biomedical can be found at www.sparkbiomedical.com.

More information on spark biomedical it can be found at www dot sparked biomedical dot com.

Josh: Before I hand, the call over to Josh for a review of our financials I'd like to take this opportunity to thank Dr. Charles Theophilus craze long time support of electric Board.

Dan: Before I hand the call over to Josh for review of our financials, I'd like to take this opportunity to thank Dr. Charles Theophilus for his longtime support of electroCore.

Dan: On February 28, 2025, we announced the resignation of Dr. Theophilus from our board of directors. As a founder and patient investor of electroCore, we deeply appreciate his support for the company and wish him all the best.

Josh: On February 28, 2025, we announced the resignation of dock with the <unk> from our board of directors.

Josh: As a founder and patient investor of electric core with deeply appreciate your support for the company and wish him all the best.

Josh: Now, I'll turn the call over to Josh for a review of our financials. Thank you, Dan. Net sales for the year-ended 2024 were $25.2 million, an increase of 57% as compared to $16 million for the full year-ended 2023. The increase of $9.2 million is due to an increase in net sales across our prescription GammaCore medical devices sold to the VA and revenue from the sales of our non-prescription General Wellness Truvega brand. Gross profit for the full year of 2024 was $21.4 million as compared to $13.2 million for the full year of 2023. The increase in gross profit was primarily driven by the increase in net sales.

Josh: Now I'll turn the call over to Josh for a review of our financials Josh.

Josh: Thank you Dan.

Josh: Net sales for the year ended 2024 were $25 $2 million, an increase of 57% as compared to $16 million for the full year ended 2023.

Josh: The increase of $9 $2 million is due to an increase in net sales across our prescription gamma core medical devices sold to the VA and revenue from the sales of our Nonprescription General wellness <unk> brand.

Josh: Gross profit for the full year of 2024 was $21 $4 million as compared to $13 $2 million for the full year of 2023.

Josh: The increase in gross profit was primarily driven by the increase in net sales gross margin was 85% for the full year of 2024 as compared to 83% in a full year of 2023.

Josh: Gross margin was 85% for the full year of 2024 as compared to 83% in the full year of 2023.

Josh: Total operating expenses and a full year of 2024 were approximately $33 6 million as compared to $32 $5 billion and the full year of 2023.

Josh: Total operating expenses in the full year of 2024 were approximately $33.6 million as compared to $32.5 billion in the full year of 2023. Research and development expense in the full year of 2024 was $2.4 million as compared to $5.3 million in the full year of 2023. This decrease was primarily due to a significant reduction in investments associated with the development of TruVega Plus. Selling, general and administrative expense in the full year of 2024 was $31.2 million as compared to $27.2 million in the full year of 2023. This increase was primarily due to greater variable sales and marketing expenses consistent with an increase in sales.

Josh: Research and development expense in the whole year of 2024 was $2 4 million.

Josh: As compared to $5 $3 million in the full year of 2023.

Josh: This decrease was primarily due to a significant reduction in investments associated with the development of true vehicle plus.

Josh: Selling general and administrative expense and a full year of 2024 was $31 2 million as compared to $27 $2 million in the full year of 2023.

Josh: This increase was primarily due to greater variable sales and marketing expenses consistent with an increase in sales.

Josh: In 2025, we plan on continuing to make targeted investments in sales and marketing to support our commercial efforts, supporting all major US channels. Gap net loss in the full year of 2024 was $11.9 million compared to $18.8 million in the full year of 2023. This significant improvement was primarily due to the increase in net sales of $9.2 million for the full year of 2024 as compared to the same time period in 2023. Net loss per share for the full year of 2024 was $1.59 as compared to $3.42 net loss per share in the full year of 2023.

Josh: In 2025, we plan on continuing to make targeted investments in sales and marketing to support our commercial efforts supporting all major U S channels.

Josh: GAAP net loss in the full year of 2024 was $11 9 million compared to $18 $8 million in the full year of 2023.

Josh: This significant improvement was primarily due to the increase in net sales of $9 $2 million for the full year of 2024 as compared to the same time period in 2023.

Net loss per share for the full year of 2024 was $1 59 as compared to $3 42 net loss per share in the full year of 2023.

Josh: Adjusted EBITDA net loss in the full year of 2024 was $9 million as compared to adjusted EBITDA net loss of $15 $4 million in the full year of 2023. These.

Josh: Adjusted EBITDA net loss in the full year of 2024 was $9 million as compared to adjusted EBITDA net loss of $15.4 million in the full year of 2023. These improved results are also primarily due to increase in 2024 net sales and gross profits as compared to the same period in 2023.

Josh: These improved results are also primarily due to increase in 2024 net sales and gross profits as compared to the same period in 2023.

Josh: 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, marketable securities, and restricted cash at December 31st, 2024 totals approximately $12.2 million as compared to approximately $10.6 million as of December 31st, 2023. Net cash used in operating activities for the full year 2024 were $7 million, a 53% reduction from $14.7 million for the full year of 2022.

Josh: 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 marketable securities and restricted cash at December 31, 2024 totaled approximately $12 2 million as compared to approximately $10 6 million as of December 31 2023.

Josh: Net cash used in operating activities for the full year 2024 were $7 million, a 53% reduction from $14 $7 million for the full year of 2023.

Dan: And now, I'll turn the call back to Dan. Thank you, Josh. I'm excited about the opportunities ahead. Our revenue continues to grow in our core business lines, including prescription products sold to the VA and health and wellness products sold to consumers. Our operating metrics show continued leverage, and I'm optimistic about the company's long-term prospects, both for the brands we develop and those that align with our established sales... Demand for our prescription Gamma-Core therapy in the VA channel continues to grow based on clinical performance and our increased presence in the field. Our FSS contract has been extended to June 14, 2025, and we continue working with our VA contract specialists to secure a new follow-on contract.

Dan: And now I'll turn the call back to Dan.

Dan: Thank you Josh.

Dan: I am excited about the opportunities ahead, and our revenue continues to grow in our core business lines, including prescription products sold to the VA and health and wellness products sold to consumers.

Dan: Our operating metrics show continued leverage and I'm optimistic about the company's long term prospects both for the brands, we developed and those that align with our established sales channels.

Dan: Demand for our prescription <unk> therapy in the VA channel continues to grow based on clinical performance and our increased presence in the field are.

Dan: Our FSS contract has been extended to June 14, 2025, and we continue working with our VA contract specialists to securing new follow on contract.

Dan: We rely on our field sales organization to drive revenue growth in the VA hospital, and other prescription and <unk> channels.

Dan: We rely on our field sales organization to drive revenue growth in the VA hospital and other prescription and B2B channels. Revenue growth scales with additional headcount in that sales function. As of January 2025, we have 48 active 1099 entities representing about 80 sales agents, including sub-reps. That team is managed by eight territory business managers who are salaried employees. Our 1099 team grew rapidly from 34 groups in January 2024 to 48 groups in July 2024. But the total number of active groups has remained constant since then. Revenue growth rate has slowed somewhat since the number of 1099 groups leveled off.

Dan: Revenue growth scales with additional head count in that sales function.

Dan: As of January 2025, we have 48 active 10, 99 entities, representing about 80 sales agents, including sub reps.

Dan: That team is managed by H territory business managers, who are salaried employees.

Dan: Our 2000 1919 grew rapidly from 34 groups in January 2024 to 48 groups in July 2024, but the total number of active groups has remained constant since then.

Revenue growth rate has slowed somewhat since the number of $2 99 groups leveled off.

Dan: We expect the size of our team to grow in the second half of 2025 as we balance investment and future growth with the path to profitability. The VA healthcare system is the nation's largest healthcare system with an annual budget of $68 billion and employing more than 371,000 healthcare professionals, many of whom have been affected by macro forces. We are aware of ongoing disruptions in many of our VA hospital customers, secondary to those macro forces. We've not seen any direct effect on the cadence of our business, but the distractions cannot be ignored. That said, it's important to note that our GammaCore therapy continues to provide therapeutic benefits at a much lower cost compared to other migraine products available through the VA.

Dan: We expect the size of our teams to grow in the second half of 2025, as we balance investments in future growth with the path to profitability.

Dan: The VA health care system is the nation's largest health care system with an annual budget of $68 billion and employing more than 371000 health care professionals, many of whom have been affected by macro forces.

Dan: We are aware of the ongoing disruptions at many of our VA hospital customers secondary to those macro forces.

Dan: We have not seen any direct effect on the cadence of our business, but the distractions cannot be ignored.

Dan: That said, it's important to note that our gamma court therapy continues to provide therapeutic benefits at a much lower cost compared to other migraine products available through the VA. In addition, we do not burden the VA or other providers with significant administrative requirements as our solution is not a drug <unk>.

Dan: In addition, we do not burden the VA or other providers with significant administrative requirements as our solution is not a drug. Accordingly, we're confident that GammaCore represents a fiscally attractive solution for the VA that is well aligned with their overall cost-cutting goals. Trivega Plus has been favorably received by the market since its April 2024 launch. The brand continues to show tons of potential as a direct-to-consumer general wellness offer. We sell Trivega products direct to consumers through our e-commerce site, www.trivega.com and amazon.com. Trivega is also available through a small but growing number of business-to-business consumer initiatives such as Perks at Work and through a handful of resellers.

Dan: Accordingly, we are confident that <unk> represents a fiscally attractive solution because the VA that is well aligned with their overall cost cutting goals.

Dan: <unk> plus <unk>.

Dan: Been favorably received by the market since its April 2020 for launch.

Dan: The brand continues to show signs of potential as a direct to consumer general wellness offerings. We.

Dan: We sell through Vega products direct to consumers through our ecommerce site triple-double, your daughter, Vega Dot com and Amazon Dot com.

Dan: <unk> is also available to a small but growing number of business to business to consumer initiatives, such as Craig said work and through a handful of resellers.

Dan: We continue exploring the expansion of the crew Vega proposition through new product offerings and channel.

Dan: Continue exploring the expansion of the Truvega proposition through new product offerings and new channels. The pipeline of interests from different branches of our active duty military continues to develop for our tax dim process. Tax and revenue will continue to be hard to predict as active duty units evaluate and purchase in bulk for pilot deployment.

Dan: The pipeline of interest from different branches of our active duty military continues to develop for our taxes and products.

Dan: <unk> revenue will continue to be hard to predict as active duty units evaluated purchasing both of a pilot deployment.

Dan: Longer term, we 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.

Longer term, we 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.

Speaker Change: Last week, the vagus nerve society hosted a webinar entitled DNS as a tool to improve focus energy and readiness and today's Warfighter. It was presented by Richard Mckenley Phd of 711 human requirements weight of the Air Force Research Laboratory, if you Miss.

Dan: Last week, the Vegas Nerve Society hosted a webinar entitled VNS as a Tool to Improve Focus, Energy, and Readiness in Today's Warfighter. It was presented by Richard McKinley, PhD, of the 711th Human Performance Wing of the Air Force Research Laboratory. If you missed it, a recording is available at the Vegas Nerve Society's website, www.vnsociety.org.

Speaker Change: A recording is available at the vagus nerve societies website triple-double, you've done <unk> and society Dot <unk>.

Speaker Change: For the full year 2024, our sales and marketing expense increased by approximately $3 1 million. While sales grew by $9 2 million in 2024, we began to see most of the top line revenue growth dropping to the bottom line as our net loss declined during the same period by six.

Dan: For the full year of 2024, our sales and marketing expense increased by approximately $3.1 million, while sales grew by $9.2 million. In 2024, we began to see most of the top-line revenue growth dropping to the bottom line as our net loss declined during the same period by $6.9 million, demonstrating increasing leverage in the P&L. Further out, we're working towards adding new products to our established sales channels. The acquisition of Neurometrics and the distribution agreement with Spark Biomedical will provide patients and prescribers with more non-invasive therapies for chronic pain and opioid withdrawal issues respectively. These products, along with the GammaCore and Relitex products that we currently sell into the prescription VA channel allow our field sales team to offer a growing suite of bioelectronic self-administered therapies for certain debilitating conditions.

Speaker Change: $9 million, demonstrating increasing leverage in the P&L.

Speaker Change: Further out we are working towards adding new products to our established sales channels. The acquisition of <unk> metrics and the distribution agreement with spark biomedical who will provide patients and prescribers with more non invasive therapies for chronic pain and opioid withdrawal issues respectively.

Speaker Change: These products along with the gamba core and relative to products that we currently sell into the prescription channel allow our field sales team to offer a growing suite of bio electronic self administered therapies for Sherry debilitating conditions.

Speaker Change: As we continue to build out our strategy of adding products to our established channels. We will also continue working towards additional indications for prescription gamba core to treat post traumatic stress disorder and other clinical opportunities.

Dan: As we continue to build out our strategy of adding products to our established channels, we will also continue working towards additional indications for prescription Gamma-Core to treat post-traumatic stress disorder and other clinical opportunities.

Speaker Change: We had $12 $2 million of cash and equivalents at December 31, 2024, and we will maintain discipline around fixed operating expenses.

Dan: We add $12.2 million of cash to the equivalents at December 31, 2024. And we will maintain discipline around fixed operating expenses. We expect that commissions and media spend will continue to scale with revenues and remodel approximately 30% of related sales on a blended basis. Therefore, we expect that our cash use and operations and adjusted EBITDA loss will continue to decline sequentially as revenue increases.

Speaker Change: We expect that commissions and media spend will continue to scale with revenues and remodel approximately 30% of related sales on a blended basis there.

Speaker Change: Therefore, we expect that our cash used in operations and adjusted EBITDA loss will continue to decline sequentially as revenue increases.

Speaker Change: Our business is growing nicely, but we are refraining from providing guidance for 2025 pending the close of the previously announced acquisition of neuro metrics.

Dan: Our business is growing nicely, but we are refraining from providing guidance for 2025 pending the close of the previously announced acquisition of Miramex. In summary, I believe the business is demonstrating operating leverage and we will have a variety of strategic levers to pull to continue growing the business.

Speaker Change: In summary, I believe the business is demonstrating operating leverage and we will have a variety of strategic levers to pull to continue growing the business.

Operator: At this time, I'll turn the call over to the operator. Operator, please open the line for questions.

Speaker Change: At this time I'll turn the call over to the operator operator, please open the line for questions.

Speaker Change: Thank you Dan we're now going to open up the Q&A session.

Operator: Thank you, Dan.

Operator: We're now going to open up the Q&A session. To ask a question, online participants can click the raise your hand icon, which you will find at the bottom of your Zoom screen. Raising your hand will alert us that you want to be called on to ask a live question. You'll be placed into queue and called on. Just note you'll be on mute until you are called on. So just wait for your prompt before speaking.

Speaker Change: To ask a question online participants can click the raise your hand icon, which youll find at the bottom of your use green.

Speaker Change: Raising your hand, we'll learn off that you want to be called on to ask a question you will be placed into Q and called on.

Speaker Change: Youll be on mute until you recall, Dan So just wait for your plan before speaking.

Speaker Change: The second way to participate in Q&A, if you use the Q&A widget, which will allow you to type in your question.

Operator: The second way to participate in Q&A is to use the Q&A widget, which will allow you to type in and text the question. We will take questions from there as well, but just note, if we run into a time constraint, someone from the IR team will get back to you if your question is not asked on today's call.

Speaker Change: We'll take question from there as well, but just note if we run into a time constraint someone from the IR team will get back to you. If your question is not on today's call.

Operator: With that, we will now begin and pause for a moment to build the queue.

Speaker Change: With that we will now begin pause for a moment to build the queue.

The first question will come from Anthony Vendetti.

Anthony Vendetti: The first question will come from Anthony Vendetti. Anthony, we're just working to unmute your line. Okay, can you hear me now? We can hear you. OK, excellent. So Dan, just on the.

Speaker Change: Anthony we're just working on mute your line.

Anthony Vendetti: Okay can you hear me now.

Speaker Change: We can hear you okay.

Dan: So Dan just on the on the.

Dan: The neuro metrics acquisition once that's complete.

Dan: The Neurometrics acquisition, once that's complete, how do you intend to sell the QWEL product? Are you going to put it into your existing sales channels? Do you have a plan on how you're going to price it, sell it? Maybe just give us a broad outline of the plans. Yeah, thanks, Anthony. Good question. So, you know, we've got to close the transaction and then take a hard look. But QWEL fibromyalgia is currently available in, I believe, roughly 20 VA hospitals through open market access. It's not on contract. And so step one after the closing the acquisition is to add the product to our FSS contract and through a relationship with level government services to add it to the ECAT and a variety of other contracting mechanisms that will help streamline the process.

Dan: How do you intend to sell the <unk> product.

Speaker Change: Are you going to put it into your existing sales channels do you have a a plan on how are you going to price it sell it.

Dan: Maybe just give us some.

Speaker Change: A broad outline of the plants going forward.

Anthony Vendetti: Thanks, Anthony good question so.

Speaker Change: Yeah.

Speaker Change: We got to close the transaction and then.

Speaker Change: Take a hard look but.

Speaker Change: Quell fibromyalgia is currently available in I believe roughly 20 VA hospitals through open market access it's not on contract.

Speaker Change: And so step one after the closing the acquisition is to add the product to our FSS contract and through our relationship with level government services to added to the cat in a variety of other contracting mechanisms that will help streamline the process.

Dan: We did a preliminary training of our sales team last month, but we'll do a more in-depth training of our sales team and in parallel of our customer service team and our medical affairs teams shortly after closing and then cut them loose to go call on the 150, 160 VA hospitals which are currently customers. It'll take a little bit longer for us to get on contract. So I'm very optimistic that, you know, the second quarter, depending on the timing of closing is hard to predict, but as we get into the second half of the year, that sales channel for the VA hospitals is going to work smoothly like it does for GammaCore.

Speaker Change: We did a preliminary training of our sales team last month.

Speaker Change: But we'll do a more in depth training of our sales team and in parallel are our customer service team and our medical affairs teams.

Shortly after closing and then cut them loose to go call on.

Speaker Change: 150, <unk> hundred 60, <unk>, VA hospitals, where which are currently customers.

Speaker Change: It'll take a little bit longer for us to get on contract. So.

Speaker Change: I'm very optimistic that the second quarter, depending on the timing of closing is hard to predict as we get into the second half of the year.

Speaker Change: That sales channel for the VA hospitals is going to work smoothly like it guys.

Speaker Change: Organic core.

Dan: Longer term, bringing Qualfibromyalgia to our gerunds relationship with Kaiser, bringing it to some of our commercial accounts, getting on contract with other third-party payers is all very exciting.

Speaker Change: Longer term.

Speaker Change: Bringing a qualified myalgia to our <unk> relationship with Kaiser.

Speaker Change: Bringing into some of our commercial accounts getting on contract with other third party payers is all very exciting and in parallel are in.

Anthony Vendetti: And in parallel, in 2026, we want to look at taking the over-the-counter indication for lower extremity pain into some of our e-commerce channels. But that's more of a 2026 opportunity. Okay, great. Thanks for that call, Dan. I appreciate it. I'll hop back in the queue. Thanks, Dan. Great.

Speaker Change: In 2026, we want to look at taking that.

Speaker Change: Over the counter.

Indication for lower extremity pain.

Speaker Change: Into some of our e-commerce channels, but that's that's more of a 2026 opportunity.

Speaker Change: Okay, great. Thanks for that color Dan I appreciate I'll hop back in the queue.

Dan: Thanks Anthony.

R.K.: Our next question will come from R.K. from H.C. Wainwright. Okay, it looks like you might be muted on your end. We're having technical difficulties with R.K.

Speaker Change: Our next question will come from RK from H C Wainwright.

Speaker Change: Okay. It looks like you might be muted on your end.

Speaker Change: Hey, Bill.

Speaker Change: It's we're having technical difficulties with RK.

Operator: Hey, well, we'll come back to you. Okay.

Speaker Change: Well, we'll come back to you RK.

Tyler Bussin: And but this time I'll go to Tyler Bussin of Brookline County. Can you guys hear me? Yes. Testing one, two. Okay, I think I see that I'm talking.

Speaker Change: At this time, we'll go to Tyler boosting him.

Speaker Change: Brookline capital.

Speaker Change: Can you guys hear me.

Speaker Change: Yes.

Speaker Change: Justin <unk>, okay. Okay.

Speaker Change: Kathy.

Tyler Bussin: Dan and Josh, hey, congrats on the great year. Looks like everything is going forward smoothly.

Speaker Change: Dan and Josh Hey, Congrats on the great year. It looks like everything is going forward smoothly. My primary question revolves around kind of the journey element for electric or in that kind of segment in general seems like it maybe has taken off a little bit slower than we would've thought about this time last year can you talk a little bit about Jones in a little more detail.

Dan: My primary question resolves around kind of the GERNs element for electroCore, and that kind of segment in general seems like it maybe has taken off a little bit slower than we would have thought about this time last year. Can you talk a little bit about GERNs in a little more detail, kind of what's going on and what are your plans in that space for 2025? Yeah, so it has taken much longer. It's been much more of a grind than we had hoped a year ago. But The wheel is starting. I can't hear you. Testing, one, two, three.

Speaker Change: Or what's going on and what are your plans in that space for 2025.

Yeah. So it has taken much longer than its been much more of a grind than.

Speaker Change: Then than we had hoped a year ago, but.

Speaker Change: The wheel is sorry, I can't hear you.

Speaker Change: Okay.

Speaker Change: Testing 123.

Dan: Can others hear me? Dan, we hear you. There you go. I switched it on my end now. Can you repeat that? Sorry, Dan, I had something screwed up. Yeah, so Tyler, yeah, we agree with your observation. It's taken much longer to get traction in that channel with Jurance and ultimately Kaiser. That said, we're starting to see some green shoots. We've got more than 30 repeating prescribers now, mostly in Southern California, some in the Northern California region. We're processing one or two prescriptions per month, not nearly enough to be meaningful revenue, but the wheel is starting to turn.

Speaker Change: And we hear you Erin Gull I switched on my end can you repeat that sorry, Dan I add something.

Speaker Change: Yes, so Tyler Yeah, we agree with your observation it's taken much longer.

Speaker Change: To get a to get traction in that channel with the Germans and ultimately Kaiser.

Speaker Change: That said, we are starting to see some green shoots.

Speaker Change: We've got more than 30.

Speaker Change: Repeating prescribers now mostly in southern California, some in the Northern California region.

Speaker Change: We're processing, one or two prescriptions per month, not nearly enough to be meaningful revenue by.

Speaker Change: The wheel is starting to turn.

Speaker Change: The the prescribers are starting to understand.

Dan: The prescribers are starting to understand how to enter it into their system and success breeds success. So I'm very optimistic. It's gonna be slow. And at some point, we will reach a tipping point and I continue to be optimistic. It'll be sooner rather than later.

Speaker Change: How to enter it into their system and success breeds success, so I'm very optimistic it's going to be slow.

Speaker Change: And and at some point, we will we will reach a tipping point and I continue to be optimistic it will be sooner rather than later.

Speaker Change: Great. Thank you very much I'll get back in the queue.

Tyler Bussin: Great, thank you very much.

Tyler Bussin: I'll get back in the queue.

Speaker Change: And our next question will come from Mark <unk>, Mark we're going to enable you to ask a question on just on mute yourself when you see it.

Mark Gomes: Okay, our next question will come from Mark Gomes. Mark, we're going to enable you to ask a question and just unmute yourself when you see it. Am I unmuted? Yes, you are. All right, there we go. Hey, guys. Great work.

Mark: And my own muted.

Speaker Change: <unk>.

Speaker Change: Alright, Barry go Hey, Guy.

Speaker Change: Great work.

Dan: So, you know, looking at the Kaiser, sorry about that, the Kaiser channel, how would you contrast the start there to the start that you had in the VA system? Is there a similarity there and therefore some parallels we can draw with regard to how that can ramp up over time? That's very perceptive, Mark. You're absolutely right. You know, when we started selling in the VA hospital system in 2018, it was onesies, twosies, a lot of head-scratching, and it takes a while to get the flywheel turning. So, Kaiser is taking longer, candidly, than our original initiatives in the VA hospital system.

Speaker Change: So you're looking at Mackay there sorry.

Speaker Change: Sorry about that the Kaiser channel.

Speaker Change: How would you contrast.

Speaker Change: They're gonna start than you had in EMEA.

Speaker Change: Is there a similarity there and therefore.

Speaker Change: Airlines, we can draw with regard to how that will ramp up over time.

Speaker Change: Hey.

Speaker Change: That's very perceptive, Mark you're absolutely right you know when when we started selling in the VA Hospital system in 2018, it weighs onesies Twosies a lot of head scratching and it takes a while to get the flywheel turning so Kaiser is taking.

Longer candidly than our than our original initiatives in the VA Hospital system.

Dan: The Kaiser facilities are much more locked down. By that, I mean they're very careful about letting sales reps, for example, into the facilities to talk to clinicians. It's a very methodical, very constrained process, but we are starting to get through there. So, I don't know how much longer it's going to take, but we're not giving up by any stretch. Would it be fair to say, then, that once you get in, it's hard to get kicked out, and therefore, because of the competitive advantage of being there and tougher for others to get in, that ends up being an advantage once you do?

Speaker Change: There are the Kaiser facilities are much more locked down.

Speaker Change: By that I mean, it's very they're very careful about lighting sales reps. For example, we ended it facilities to talk to clinicians. It's a it's a very methodical.

Speaker Change: Very constrained process, but we are starting to get through there. So I don't know how much longer it's going to tag, but we're not giving up by any stretch.

Speaker Change: Would it be fair to say then that once you get in.

Speaker Change: Our.

Speaker Change: And therefore because of the competitive advantage of being there and upper brothers to get in.

Speaker Change: That ends up being an advantage once you do.

Speaker Change: Exactly right its at Kaiser Kaiser system is well known to be very sticky business that.

Dan: Exactly right. The Kaiser system is well known to be very sticky business, that it's hard to break in, but once you do, and if you're providing a clinically meaningful benefit at a fair price, those contracts are very sticky.

Speaker Change: It's hard to break in but once you do and if you're providing a.

Speaker Change: Clinically meaningful benefit at a fair price those contracts are very sticky.

Mark Gomes: Very good. Thank you. Great.

Speaker Change: Thank you right and you made mention of seeking to become a leader in bio electric devices. That's a much broader category, then vagus nerve stimulation or you know the the acquisition and partnership that you recently made.

Mark Gomes: You made mention of seeking to become a leader in bioelectric devices. That's a much broader category than just vagus nerve stimulation or just, you know, the acquisition and partnership that you recently made. Your last organization you grew to, if I remember right, 100 million in revenue. Do you think that's a fair number for what you can grow this business to or you think you can grow it, you know, less or more? Oh, so absolutely. Look, Mark, we are we're building the infrastructure in on the sales side between our field sales team, our customer service function, our supply chain management, and and more and more leveraging e-commerce opportunities.

Your last organization you grew too.

Speaker Change: If I remember right $100 million in revenue do you think that's a fair number for what you could grow this business to where you think you can.

Lastly, the war.

Speaker Change: So absolutely look mark.

Speaker Change: We are we're building the infrastructure in on the sales side between our field sales team.

Speaker Change: Our customer service function, our supply chain management, and and more and more leveraging e-commerce opportunities. We've got a great pipeline of organic products, but we're now demonstrating with neuro metrics and spar the opportunity to bring in.

Dan: We've got a great pipeline of organic products, but we're now demonstrating with Neurometrics and Spark the opportunity to bring in new products either through distribution or outright acquisition that go into and leverage the same distribution channels. So I think 100 million will be a signpost along the way. I think we can build a very large business here around non-invasive nerve stimulation for a variety of health and wellness and medical indication.

Speaker Change:

Speaker Change: New products are either through distribution or outright acquisition.

That go into and leverage the same distribution channels. So.

Speaker Change: 100 million will be a signpost along the way I think we can build a very large business here around noninvasive nerve stimulation for a variety of health and wellness and medical indications.

Speaker Change: Okay.

Dan: Okay, and then there was a recent webinar that had a military personnel kind of extolling the virtues of The biggest nerve stimulation, and in particular, singled out your device. During the Q&A, he stated that he thought that there were thousands of enlisted personnel that benefit from the device based on the research that he had done. Does that put with what you're seeing and, you know, like, I guess if you could give us a little bit of a flavor of the process that it might take to start penetrating that as opposed to the, you know, the trial units that have been sold to this point.

Speaker Change: And then there was.

Speaker Change: We've seen a webinar that military personnel.

Speaker Change: It's through installing the virtue though.

Speaker Change: Biggest nerve stimulation in in particular.

Speaker Change: Singled out year in Dubai.

Speaker Change: During the Q&A, you've stated that you thought that there are thousands of enlisted personnel all of that benefit from the device based on the research that he had done does that put with what you're seeing and you know like I guess, if you could give us a little bit of a flavor of the process that it might take to start penetrating.

Speaker Change: That as opposed to the you know the trial units that have been solved at this point I wish I could the the supply chain the purchasing process with department of Defense is is really obscure.

Dan: I wish I could. The supply chain, the purchasing process with Department of Defense is really obscure. We have quotations out for a few thousand handsets. And some of them have been publicly disclosed on sam.gov. That's one of the contracting platforms that DOD uses. So, you know, you can see how many requests for quotes we've gotten through that platform. And then it goes into a black hole, right? You know, we have a colonel or a lieutenant general who's very excited and who's acting as our champion for one of these, for each of these quotes, and they can't tell us where it's gotten lost in the DOD acquisition process.

Speaker Change: We've got we have.

Speaker Change:

Speaker Change: Quotations out.

Speaker Change: Or a few thousand handsets.

Speaker Change: And some of them have been.

Speaker Change: Publicly disclosed on S. A M dot Gov. That's one of the contracting platforms. The D. O D uses so you know that.

Speaker Change: You can see how many requests for quotes we've gotten.

Speaker Change: Through that platform and then it goes into a black hole right. You know, we added a carnival or.

Speaker Change: We turn in general who is very excited he is acting as our champion for one of these each of these quotes and they cant tell us where it's gotten lost in the D. O D acquisition process, but not unlike the kaisers system. The goal ultimately is to become a contract of record with department of defense.

Dan: But not unlike the Kaiser system, the goal ultimately is to become a contract of record with Department of Defense, and I'm told that that'll take three or four years, and then the purchasing process is much more streamlined. So, we will keep doing it. Some of the civilian crossover opportunities might actually overtake what's going on with active duty military.

Speaker Change: And I am told that that'll take three or four years and then the purchasing process is much more streamlined so we will keep doing it.

Speaker Change: Some of the civilian crossover opportunities might actually overtake.

Speaker Change: What's going on with the active duty military.

Speaker Change: Okay. Thanks.

Mark Gomes: OK, thanks. Final question, and then I'll leave you.

Speaker Change: Final question and I'll leave you.

Dan: The YouTube channel, the True Vega channel, exploded quarter to quarter by my map. That average had a quarter to quarter number on the sub-throw there. And that was even before you announced getting into the Amazon channel. So we want to hear a little bit of color on what happened in that channel this quarter and what you expect going forward. Qualitatively, I know you're not going to get it. Thanks. I'll return to this. Yeah, so you're absolutely right. December was especially big for True Vega. And we attribute that to the holiday season, gift giving. It has normalized in the first quarter.

Speaker Change: The channel.

Speaker Change: From Bank channel op exploded quarter over quarter by my math.

Speaker Change: Is that accurate.

Speaker Change: A number on the top row of battery.

Speaker Change: That was even before you without getting into the Amazon channel both.

Speaker Change: Here are a little bit of color on what happened in that channel this quarter and what you expect going forward.

Speaker Change: I think any items in terms of the yes.

Yes, so you're you're absolutely right December was.

Especially big for true Vega, and we attribute that to the you know the the holiday season gift, giving.

Speaker Change: It's a it has normalized in the first quarter. It has normalize a little bit we're not not quite is not the same run rate that we were in December, but we're seeing nice sequential growth month to month and quarter to quarter.

Dan: It has normalized a little bit. We're not quite at the same run rate that we were in in December, but we're seeing nice sequential growth month to month and quarter to quarter. Great.

Speaker Change: Thank you.

Speaker Change: Great. Thank you Dan our next question of income from match words.

Matt Schwarz: Thank you, Dan. Our next question is going to come from Matt Schwarz. Matt, you want to unmute your line? Yeah, can you hear me? Yes, we can hear you now. Great. I appreciate you taking my questions. I just had a few. The first is I think you guys put an ATM in place not long ago. Can you comment on whether you used any of it and how much? I'm not sure that that's public yet.

Matt you went on mute your line.

Matt: Yeah can you hear me.

Yes, we can hear you great. Thank I appreciate you taking my questions I have.

Matt: Set of you the first is.

Matt: I think you guys put in a T M. In place now long ago can you can you comment on whether you used any of it and how much.

Matt:

Matt: I'm not sure that that's public yet.

So.

Josh: So I'm going to duck the question because we're not talking about that publicly at this point in time. I mean, we do have an ATM facility. Oh, okay. Oh, I figured it. I saw the cash, I thought. actually go up versus the cash flow from Ops, so I figured you perhaps used it, but. We have some we have some warrant exercises. Okay, so I stand corrected. It is in the 10k. We used it. Just for a few days to make sure that we understand how to use it, about $200,000 worth in end of February, beginning of March.

Matt: I'm going to duck the question.

Matt: Kids, where we're not talking about that publicly at this point in time I mean, we do have an ATM facility yes.

Matt: Oh.

Matt: Okay I figured.

Matt: I thought I saw the cash.

Matt: Actually go up versus the cash flow from ops. So I figured you perhaps user button.

Matt: We had some we had some warrant exercises okay. So I.

Matt: I stand corrected it is in the 10-K.

Matt: We used it.

Just for a few days I to make sure that we understand how to use it about a $200000 worth.

Matt: In the end of February beginning of March, but there were also some warrant exercises.

Josh: But there were also some warrant exercises. post the quarter close that add to the cash. Okay, great.

Post the quarter close that add to the cash.

Matt: Okay, Great and secondly could you could you comment about I think if I heard you correctly you guys are still working on the VA contract.

Josh: Secondly, could you could you comment about. I think if I heard you correctly, you guys are still working on the VA contract. Is there any more color around that? I'm not super well versed on how these negotiations work or when your last one expired and such. Sure. We've been in this. The contracting office is slow. They've been giving us extensions. I believe this year. We've had conversations in the last month with the contracting officer, dotting I's and crossing T's and working on payment terms. But I suspect that we're going to continue to be in this sort of three or four month extensions at a time.

Matt: Is there any more color around that I'm not super well versed on how these negotiations worker when one year last one expired.

Matt: And.

Matt: The we've been in this.

Matt: The contracting offices is slow.

Matt: They've been giving us extensions I think the current extension goes into June of this year.

Matt: We've had conversations.

Matt: In the last month with the contracting officer, Dotting I's and crossing T's and.

Matt: Working on payment terms, but I suspect that we're going to continue to be in this sort of three or four month extensions at a time in parallel we also sell our products with a level of government services.

Josh: In parallel, we also sell our products with level government services and our products are on the level contracts as well. So we have a sort of a backup. I want to say 40 percent of our business went through the level contracts instead of our own contract. And actually, we make a little bit more money through level because level absorbs the credit card processing fees that we have to absorb, you know, so that the two and a half, three percent. So we're agnostic which contracting mechanism that we go through, but we like having both.

Matt: And our products are on the level of contracts as well so we have a sort.

Matt: Sort of a backup.

Matt: To say, 40% of our business.

Went through the level contracts instead of our own contract am.

Matt: And and actually we make a little bit more money through level because level absorbs the credit card processing fees that now we have to absorb answered it in the two and a half 3%. So we're we're agnostic, which contracting mechanism that we go through but we like having both.

Matt: Okay got it okay.

Josh: Okay, got it. Okay, and then lastly, am I right that the business that you're acquiring, Neurometrics, the product sales associated with that, Um, what wasn't their total sales number, right? It's just a portion of it. Correct. You're referring to neurometrics? Yeah. The product line that we're going to continue with is called Quell for pain management. Their DTN check product line for for diabetes is going through a separate asset sale process. And I'm not sure how much of that they've made public at this point. I say, yeah, and just the last piece of that is I'm trying to, I heard you say.

Matt: Okay, and then lastly.

Matt: Am I right that the business that you're acquiring neurometrics, the the product sales associated with that.

Matt: What wasn't there total sales number ray is just a portion of it.

Matt: Correct, you're referring to in euro metrics yet.

Matt: Product line that we're going to continue with is called quell.

Matt: For pain management.

Matt: Their D T N check product line.

Matt: For.

Matt: <unk> for diabetes.

Matt: <unk> is going through a separate asset sale process.

Matt: In <unk>.

Matt: I'm not sure how much of that they've made public at this point.

Matt: I see.

Matt: Yeah, and then just the last piece of that is I'm trying to I heard you say.

Josh: You may give guidance in the future once you have a better sense of the revenue contribution from the acquisition. Is that right? Yeah, so we're expecting to close the acquisition in the in the second quarter. And, you know, at that point, we'll have a much better feel for what the. pro forma combined company financials are going to look like for 2025. So rather than speculate so close. We're going to we're going to try and do it right. If you had to highlight, I know you've been putting up some great growth, and I think Well, I think consensus obviously has you growing quite a bit in 2025.

Matt: You may give guidance in the future once you have a better sense of the revenue contribution from from the acquisition is that right.

Matt: Yeah, So we're expecting to close the acquisition in a in the second quarter.

Matt: And Ah at that point, we will have a much better feel for.

Matt: What the.

Matt: Pro forma combined company financials are going to look like for 2025, so rather than speculate it's so close.

Matt: We're going to we're going to try and do it right.

Matt: If you had to highlight I know you've been putting up some great growth in.

Matt: Some.

Matt: I think you know.

Matt: Consensus obviously has you growing quite a bit in 2025, if you had to highlight just at a high level without getting into the numbers, where where you think the best growth opportunity is in 2025.

Josh: If you had to highlight, just at a high level, without getting into the numbers, where you think the best growth opportunity is in 2025, what would you? Yeah, so look, we've got a we've got great momentum in our prescription gamma core cells for headache. I think that's going to continue to grow. I think the percentage is going to It's not going to grow at the same percentages because we're dealing with larger dollar amounts, but it's going to continue to grow well above market. Our direct-to-consumer continues to surprise us at how well that business is doing.

Matt: What would you.

Matt: Yeah, So look weak.

Matt: We've got a we've got great momentum in our prescription gamma core sales for headache.

Matt: And I think that's going to continue to grow I think the percentage is going to be.

It's not going to grow at the same percentages, because we're dealing with larger dollar amounts, but it's going to continue to grow well above market.

Matt: Our direct to consumer continues to surprise us and how well that business is doing that's off of a smaller base.

Matt Schwarz: That's off of a smaller base, but I think that's going to continue to be an upside surprise for us. We're working on additional indications. We may get a lift from additional indications in the back half of the year. And then, of course, the one acquisition product from Neurometrics and the SPARC biomedical for substance abuse are upsides for the back half of 2025, and certainly for 2026. Okay, thank you.

Matt: But I think that's going to continue to be an upside surprise for us.

Matt: We're working on additional indications, we may get a lift from additional indications in the back half of the year and then of course the two.

The one acquisition product from neuro metrics and the spark biomedical for substance abuse or.

Matt: Upsides for the back half of 2025 and certainly for 2026.

Matt: Got it okay. Thank you.

Thanks, Matt.

Matt Schwarz: Thanks, Matt.

Speaker Change: K from each CW, let let's try again I know we had some technical issues the last time.

Operator: I know we had some technical issues the last time.

Matt: Okay.

Matt: Okay can you on mute.

Operator: Parkey, can you unmute? It's not muted.

Matt: Yeah.

Matt: He's not muted.

Speaker Change: Okay, well, while we wait maybe we can take some of the questions that have been submitted.

Operator: Okay, well, while we wait, maybe we can take some of the questions that have been submitted. Yeah, and a couple of questions about the availability of Truvaga Plus in the UK without a prescription and sales in the UK. Do you want to spend a minute there? So we have not launched Truvega outside of the US. We wanted to make sure that we understood the product quality first and return rates first and foremost, as well as the sale to cash cycle. We are looking at launching Truvega 350 in Canada and the UK later this year. Truvega Plus is mobile app enabled.

Speaker Change: Dan a couple of questions about the availability of <unk> in the U K without a prescription and.

Sales in the U K do you want to spend a minute there.

Speaker Change: So we have not launched a true vega outside of the U S. A we wanted to make sure that we understood.

Speaker Change: The product quality first in return rates first and foremost is as well as the.

Speaker Change: As the sale to cash cycle.

Speaker Change:

Speaker Change: We are looking at launching true Vegas, 350 in Canada, and the U. K later this year true Vega pluses mobile App enabled that's a little bit more complicated.

Dan: That's a little bit more complicated to launch outside the U.S. because every country has their own data management and personal data protection rules that we're not in a position to do the detailed engineering around all of that.

Speaker Change: To launch outside the U S. Because every country has their own data management.

Speaker Change: And personal data protection rules that.

We just we're not in a position to to do the detailed engineering around all of that but we are going to explore launching to Vegas $3 50 in the U K and in Canada in the second half of this year.

Dan: But we are going to explore launching Truvega 350 in the UK and in Canada in the second half of this year.

Speaker Change: Great I do have.

RK: I do have RK's question via email, so I'm going to read on his behalf.

<unk> question via email, so I'm going to read on his behalf.

Is there an impact from the VA person personnel reductions.

Dan: Is there an impact from the VA personnel reductions that have occurred that could impact the GammaCore business? So, nothing material yet, but we are watching the situation. There was a memo about a reduction in force, a significant reduction in force in the VA that came out at the beginning of March. Prior to that, there was a lot of distraction around the early retirement offers that were made. And so, we're not seeing any explicit issues, but a lot of the people that we work with on the supply chain side are distracted, you know, trying to figure out if they should take the early retirement buyout, worried about whether they're going to be affected by the RIF.

Speaker Change: It occurred that could impact <unk> business.

Speaker Change: So nothing material yet, but we are watching the situation. There was a memo are about a reduction in force a significant reduction in force in the V. A they came out at the beginning of March.

Speaker Change: Prior to that there was a lot of distraction around the early retirement offers that were made.

Speaker Change: And so we're not seeing any explicit.

Issues, but a lot of the people that we work with on the supply chain side are distracted.

Speaker Change: Trying to figure out if they should take the early retirement buyout.

Speaker Change: I worried about whether they are going to be affected by the riff on the clinical side, among the doctors and nurses in that staff.

Dan: On the clinical side, among the doctors and nurses and that staff, we really do not see any disruption, but on the supply chain side, we are seeing some distraction.

Speaker Change: We really do not see any disruption, but on the supply chain side.

Speaker Change: We are seeing some distraction.

Speaker Change: Okay. Thank you. This one also comes from Mark what is your confidence on achieving a mid <unk> gross margin in 2025, and then the long term what are the gross margins investors should expect.

Dan: Okay, thank you.

Josh: This one also comes from RK. What is your confidence on achieving a mid-80s gross margin in 2025? And in the long term, what are the gross margins investors should expect? So great question, you know, we've got plenty of track record now with our GammaCore, prescription GammaCore, and now with our direct-to-consumer Truvega product line. So there's a little bit of give and take with product mix. But for 2025, most of our revenue is going to come from our legacy product lines. And and we know what that gross margin profile looks like. As we get into the back half of the year, as I mentioned earlier, we think there's upside in in the Neurometrics Quell product and in the Spark Sparrow product.

Speaker Change: Great question, Yeah, where we've got plenty of track record now.

Speaker Change: With our gamma core prescription gamma core and now with our direct to consumer true Vega product line. So.

Speaker Change: There's a little bit of give and take with product mix, but for 2025. Most of our revenue is going to come from our legacy product lines in and we know what that gross margin profile looks like as we get into the back half of the year.

Speaker Change: As I mentioned earlier, we think there's upside in India.

Speaker Change: In the newer metrics quell product and in the spark sparrow product.

Josh: Those gross margins are probably a little bit lower. And so as that product mix, if if if one or both of those products become material revenue, then that product mix might pull down gross margin. But I really think that's more of a 2026 conversation than than 2025. 2025 revenue is going to be dominated by our existing product.

Speaker Change: Those gross margins are probably a little bit lower.

Speaker Change: And so as that product makes if if if one or both of those products become material revenue.

Speaker Change: And then that product mix might pull down gross margin, but I really think that's more of a 2026th conversation then and then 2025 2025 revenue he is going to be dominated by our existing products.

Speaker Change: Great I mean, it's a good question here.

Josh: Great.

Josh: I'm going to take a question here that was submitted by Jeff Cohen of Lattinberg. Could you talk about the GammaCore US commercial channel a little more? What are the 25, 26 plans there to fuel awareness?

It was submitted by Jeff Cohen of Ladenburg could you talk about the gamma core U S commercial channel a little more what are the 'twenty five 'twenty six plans there to fuel awareness and growth.

Josh: Great question. So, you know, Jerns and Kaiser is is the huge opportunity for us on the commercial channel. Our cash pay channels, when we launched Truvega, we anticipated that a significant portion of our cash pay channel would migrate to the lower price point of Truvega, and we're not surprised that some of that has happened.

Speaker Change: Great question so.

Speaker Change: Gerrans and Kaiser is a is the huge opportunity for us on the commercial channel.

Our cash pay channels, when we launch true Vega, we anticipated that a significant portion of our cash pay check.

Speaker Change: Channel would migrate to the lower price point of true Vega, and <unk> and we're not surprised that some of that has happened in 2026 I'm assuming that we finally do get traction with Gerrans I. This year in 2026, we're going to look towards getting on contract with.

Josh: In 2026, assuming that we finally do get traction with Jaren's this year in 2026, we're going to look towards getting on contract with other indemnity insurance third-party payers, and I think that's really what's going to be necessary to drive growth in the prescription commercial channel. Great.

Speaker Change: Are there.

Speaker Change: Indemnity insurance third party, Payors and and I think that's really what's going to be necessary to drive growth in our prescription commercial channel.

Okay.

Speaker Change: Great two questions that came in from Larry Lytton.

Josh: We have two questions that came in from Larry Linton. The first one is, in the next three to five years, what do you think the percentage revenue mix would be between your existing portfolio products and the acquired or the assets that you're in the process of acquiring? That's a great question.

Speaker Change: The first one is in the next three to five years, what do you think the percentage revenue mix would be between your existing portfolio of products and the acquired.

Speaker Change: So you are in the process of Macquarie.

Speaker Change: And that's a great question my Crystal ball is very fuzzy.

Dan: My crystal ball is very fuzzy. I think our prescription GammaCore business is going to continue to grow above market. The wild card is how much are we willing to invest in consumer wellness products and therefore how quickly that product line will grow. I can see scenarios where our health and wellness initiative overwhelms our more traditional prescription medical device business. I'm very optimistic about the Quell product, both on the prescription side and on the health and wellness side. And the substance abuse product from Spark has tremendous upside. As you know, substance abuse and managing it is a crisis in this country.

Speaker Change: I think our prescription gamma core business is going to continue to to grow above market.

Speaker Change: The wildcard is how much are we willing to invest in consumer wellness products and therefore, how quickly.

Speaker Change: That product line will grow I can see scenarios, where our health and wellness initiative.

Speaker Change: Overwhelms, our more traditional prescription medical device business I'm very optimistic about the quell product both on the prescription side and on the health and wellness side.

And the substance abuse product from spark.

It has tremendous upside is as you know our substance abuse and managing it is it is a crisis in this country. So.

Speaker Change: I I can't Handicap what.

Dan: I can't handicap what it's going to look like in three years.

Speaker Change: What it's going to look like in three years.

Speaker Change: But it's going to be big.

Dan: But it's going to be big.

Josh: Okay, we have two more questions over over the text box and then one more live question. Can you talk about your capital adequacy? What funding do you anticipate needing over the near to mid term? Yeah, that's a great question. It's something that the board and management look at very, very frequently. We finished the year with more than $12 million of cash. In the fourth quarter, we used less than a million of cash. So we've got plenty of runway to keep growing the revenue line and get to that cash positive inflection. That said, there are places where we believe we could be growing faster if we were willing to make bigger investments.

Speaker Change: We have two more questions over over the Textbox about one more question can.

Speaker Change: Can you talk about your capital adequacy.

Speaker Change: Funding do you anticipate meeting over the near to midterm. Yeah. That's a great question, it's something that the board and management look at a very very frequently we finished the year with more than $12 million of cash in the fourth quarter.

Speaker Change: We use less than 1 million of cash.

Speaker Change: So we've got plenty of runway.

Speaker Change: To keep growing the revenue line and get to that cash positive inflection.

That said there are places, where we believe we could be growing faster. If we were willing to make bigger investments you know for example to grow our field sales force in and hire additional territory business managers or on the consumer side to get more aggressive about our marketing and branding.

Josh: For example, to grow our field sales force and hire additional territory business managers or on the consumer side to get more aggressive about our marketing and branding activities. And so those are things that we look at on a regular basis.

Activities and so those are things that we look at on a regular basis.

Josh: At this point in time, though, we feel like we've got plenty of cash to execute the plan and we have no plans to raise any capital.

Speaker Change: At this point in time, though.

Speaker Change: We feel like we've got plenty of cash to execute the plan and we have we have no plans to raise.

Speaker Change: To raise any capital.

Speaker Change: Great. We have another question here about your strategy on how to drive sales of Truvada through the website, but also on Amit on Amazon.

Dan: Great. We have another question here about your strategy on how to drive sales of Truvaga through the website, but also on Amazon. And a second part of that was, can you help this investor better understand the differentiating factors of Truvaga Plus to competing products that are out there and sold? Um, yeah, so, uh, Until now, most of our spending on Truvega has been on search. And increasingly, we're spending money on social media to create awareness. We've started to kind of move up the value chain with influencers and affiliates. And there's a huge ecosystem out there of especially biohacker influencers and increasingly affiliates.

Second part of that was can you help this investor better understand the differentiating factors of providing a path to compete any products that are out there it's old.

Speaker Change:

Speaker Change: Yes so.

Speaker Change: Until now most of our spending on.

Speaker Change: On true Vega has been on on search.

Speaker Change: And increasingly we're spending money on social media.

Speaker Change: To create awareness.

Speaker Change: We've started to kind of move up the value chain with Influencers and affiliates and Theres a huge ecosystem out there.

Speaker Change: Of especially Biohacker influenced.

Speaker Change: Influencers and and increasingly affiliates.

Dan: Amazon is a big step for us, right? Amazon, we're all consumers. Most of us prefer to buy something on Amazon. If it's available there, it's just a much more seamless process. Amazon, of course, takes a fee. And so that affects our contribution margin. And so we're going to be monitoring that closely as we get more experience with Amazon. And then resellers longer term, that's chunky business, right? Because with a reseller, you sell a significant number of product, maybe they get a discount. But then again, I don't have to spend the money on advertising. And so that could also work very nicely.

Speaker Change: Amazon is a big step for US right Amazon. We're all consumers are most of those prefer to buy something on Amazon. If it's available there. It's just a much more seamless process.

Speaker Change: Amazon of course takes a fee and so that affects our contribution margin and so we're going to be.

Speaker Change: Monitoring that closely as we get more experience with Amazon and then resellers longer term you know that that's that's chunky business strike issue with a reseller you so cigna.

Speaker Change: A significant number of product maybe they get a discount, but then again I don't have to spend the money on advertising and so that can all work that could also work very nicely. So.

Dan: So we see it, I guess you call it an omni-channel distribution and sales investment. And we're very pleased with our metrics so far. And the numbers keep getting bigger and bigger.

Speaker Change: We see it.

Speaker Change: You call it an omnichannel.

Speaker Change: The distribution and sales investment.

Speaker Change: And we're very pleased with our metrics, so far and the numbers keep getting bigger and bigger.

Speaker Change: Okay, I'm going to combine two questions here on the <unk> side.

Dan: I'm going to combine two questions here. On the RxGammaCore side, VA and DoD business has been running in a range for the past three quarters now. Do you need to grow the sales force again to re-accelerate this business? And can you just talk about how many salespeople you have today versus where you were today?

Speaker Change: VA and Vod business has been running in a range for the past three quarters now do you need to grow the sales force again to re Reaccelerate. This business and can you just talk about how many salespeople you have today versus where you were six months ago.

Yeah, we talked about that in our in our prepared remarks, we have roughly 80.

Dan: Yeah, we talked about that in in our prepared remarks. We have roughly 80 sales reps out there now that are straight commission. They get paid on a 1099. Many of them carry additional product lines besides ours. We have eight W-2 employees that are managing that group of 80 field sales reps. Those numbers have been constant since July-August of 2024. I want to get through closing the Neurometrics transaction, and assuming things are going smoothly, we're going to look at investing in growing that field sales function again as we get into the second half of the year.

Speaker Change: Sales reps out there now that are our straight commission they get paid on a 10 99.

Speaker Change: Many of them carry additional product lines. Besides ours, we have a W. Two employees that are managing that group of 80 field sales reps.

Speaker Change: That those numbers have been constant since July August of 'twenty 'twenty four.

Speaker Change: Ah, we're going to I want to get through closing the neuro metrics transaction and assuming things are going smoothly, we're going to look at investing in our in growing that field sales function again, as we get into the into the second half of the year, but absolutely our prescription gamma.

Dan: But absolutely, our prescription GammaCore sales and I expect our prescription fibromyalgia sales will ultimately scale with feet on the street and our ability to get the word out and educate clinical staff, doctors and nurses.

Speaker Change: Core sales and our I expect that prescription fibromyalgia sales.

Speaker Change: We'll ultimately scale with our feet on the street and our ability to get the word out and educate our clinical staff doctors and nurses.

Speaker Change: Great. Thank you and we're going to take our last line of question Kenneth Steinhauser.

Kenneth Steinhauser: Great, thank you.

Kenneth Steinhauser: And we're going to take our last live question from Kenneth Steinhauser. Ken, we're going to elevate you. You're just going to need to unmute.

Speaker Change: Ken we're going to elevate your you're just going to need on mute.

Kenneth Steinhauser: Hi, Hi, Dan. Thank you for taking the question.

Kenneth Steinhauser: Hi, Dan. Thank you for taking the question. I'm a retired pharmacist. I actually purchased two Truvega Plus units. And thank you. Yeah. Thank you for the 15% discount, by the way. I appreciate it. You haven't mentioned that about that too much. If anybody wants to know about a 15% discount, I'm on Yahoo. And you can reach me there. But I have three family members that are using Truvega Plus, one for GI symptoms and it's worked very well, the other one for sleep. Now the one for sleep is also doing very well, but he likes to share things with his significant other.

Speaker Change: The entire Congresses time actually purchased two two very good questions.

Kenneth Steinhauser: Thank you.

Speaker Change: Thank you. Thank you for the 15% discount model here I appreciate it.

Speaker Change: You haven't mentioned about that too much better.

Speaker Change: [laughter], if anybody wants to know about a 50% discount on Yahoo.

Speaker Change: Rich you there.

Speaker Change: Our two.

Speaker Change: Two family members or three family members that are usually very good for us one for Gi symptoms and it's worked very well the other workers slowly.

Speaker Change: No one for sleep.

Speaker Change: <unk> is also doing very well, but he likes to share things will cause a significant other.

Dan: And I have a problem with the app, because the app will only let one person in a household use the unit. Are you guys going to change that app so more than one person can use the unit, or is that something that's going to... Yeah, so we have a whole development pathway for the mobile app feature set. I have to balance that with our R&D spend, and we're trying to stay disciplined around operating expenses. But that functionality is definitely on the pathway. One of the things we're really looking forward to is going live on Apple Health, and so making it interoperable with Apple Health so that people can track not just their vagus nerve stimulation, but also the impact on various heart rate variability, quality of sleep through the Apple Health functionality.

Speaker Change: I have a.

The problem with the App because the Apple only.

Speaker Change: One person in a household use a use the unit.

Are you guys going to change that absent more than one person can use the unit.

Speaker Change: Or does something that's coming out so we have a we have a whole development pathway of for the mobile App feature set.

Speaker Change: I have to balance that with our R&D spend and we're trying to stay disciplined around operating expenses.

Speaker Change: But that is that functionality is definitely on the on the pathway are one of the things. We're really looking forward to is going live on Apple health and so making it interoperable with Apple health so that people can track.

Speaker Change: It's not just their vagus nerve stimulation, but also the impact on various it's heart rate heart rate variability quality of sleep through.

Speaker Change: Through the Apple health functionality, so we got great people.

Dan: So we've got great... And we're also going to be picking up some infrastructure from Neurometrics. They have a far more sophisticated mobile app and back infrastructure around the mobile app for a portal. We're just not there yet, and I have to juggle that against the investment required.

Speaker Change: And and we're also going to be picking up some infrastructure from neuro metrics. They have a far more sophisticated mobile app and.

Speaker Change: And back infrastructure around the mobile App for our portal, we're just not there yet and I have to juggle that against the investments required okay well. Thank you very much for taking my question I appreciate it.

Kenneth Steinhauser: OK, well, thank you very much for taking my question. I appreciate it.

Dan: Absolutely. Dan, do you want to go into your closing statement? Absolutely.

Speaker Change: Absolutely.

Dan: Dan do you want to go into your closing statement.

Dan: Absolutely. So thank you all our love them more interactive our call sorry, we had a little bit of technical difficulties and as usual I also want to thank our customers the doctors and nurses that are acting as our champions are increasingly the biotech.

Dan: So thank you all. Love the more interactive call. Sorry, we had a little bit of technical difficulties. And as usual, I also want to thank our customers, the doctors and nurses that are acting as our champions. Increasingly, the biohackers out there that are picking up on Truvega, and certainly our employees and our board of directors for their patience and support with us. So everybody have a good day.

Dan: <unk> out there.

Dan: That are picking up on a true Vega and certainly our employees and in our board of directors for their patience and support with US So everybody have a good day.

Dan: Goodbye.

Goodbye.