Q1 2025 Profound Medical Corp Earnings Call
Okay.
Speaker Change: Good day and thank you for standing by welcome to the profound medical first quarter 2025 financial results Conference call. At this time, all participants are in a listen only mode.
Speaker Change: After the speaker's presentation, there will be a question and answer session to ask a question. During the session you will need to press star one one on your telephone.
Speaker Change: Didn't hear an automated message about your hand is reyes choose draw. Your question. Please press star. One again, please be advised that today's conference is being recorded I would now like to hand, the conference over to your first speaker today, Steven Kilmer head of Investor Relations. Please go ahead.
Speaker Change: Thank you good afternoon, everyone. Let me start by pointing out that this topic call will include forward looking statements within the meaning of applicable securities laws in the United States and Canada.
Speaker Change: All forward looking statements are based on per pounds current beliefs assumptions and expectations and relate to among other things and he expressed or implied statements regarding future financial performance and position.
Speaker Change: Expectations regarding the efficacy of profound technologies in the treatment of prostate cancer, BPH uterine fibroids palette of pain treatment and Australia Osteoma.
Speaker Change: Such statements involve known and unknown risks uncertainties and other factors that may cause actual results performance or achievements to be materially different from those implied by such statements.
Speaker Change: No forward looking statement can be guaranteed.
Speaker Change: Listeners are cautioned not to place undue reliance on these forward looking statements, which speak only as of the date of this conference call.
Speaker Change: Profound undertakes no obligation to publicly update or revise any forward looking statement, whether as a result of new information future events or otherwise other than as required by law.
Speaker Change: Representing the company today are Dr. <unk> <unk> per pound Chief Executive Officer.
Speaker Change: The one the company's Chief Financial Officer Dr.
Speaker Change: Dr. Matthew Bert mix profiles, President and Tom <unk>, our Chief commercial officer.
Richard: I'll now turn the call over to Richard.
Richard: Good afternoon, everyone.
Richard: And welcome to our first quarter 2025 conference call.
Richard: On behalf of the management team and everyone at profound I would like to thank you for your ongoing interest in our company.
Richard: For those of you who are shareholders. We appreciate your continued interest and support.
Richard: I will turn the call over to Matthew in a moment to provide update on Tulsa utilization trends.
Richard: Any color trial.
Richard: And our upcoming Tulsa AI module for BPH.
Richard: However, before I do I would like to provide a brief summary of our first quarter 2025 financial results.
Richard: To streamline things.
Richard: All of the numbers I will refer to have been rounded.
Richard: Approximate.
Richard: For the three months period ended March 31, 2025, the company recorded revenue of.
Richard: $2.6 million with $1.8 million from recurring revenue and 820000 from one time sale of capital equipment.
Richard: First quarter 2025 revenue increased 82% from $1 4 million dollar from the theme here in 2024.
Richard: Gross margin in Q1 2025 was 71%.
Richard: Compared to 60% in Q1 'twenty 'twenty four.
Richard: Total operating expenses in the 2025 first quarter, which can feedstock.
Richard: R&D and SG&A expenses were $13 million.
Richard: Compared with $8.7 million in the first quarter of 2024.
Richard: Overall, the company recorded a first quarter 2025, net loss of $10 7 million or <unk>.
Richard: 36 <unk>.
Richard: <unk> common share compared to a net loss.
Richard: One 6 million or 27.
Richard: <unk> common share for the same three months period in 2024.
Richard: As at March 31, 2025 profound had cash of 46 4 million.
Matthew: With that I will now turn the call over to Matthew.
Matthew: Thank you Richard.
Okay. The first quarter, the Tulsa Pro had a strong presence at several relevant medical meetings more recently just last week. In fact, Tulsa was featured in multiple presentations at the annual American Urological Association meeting in Las Vegas.
Matthew: But the major catalyst at <unk> will be initial data readout from the captain trial. The first successful randomized controlled trial, comparing a new technology to robotic radical prostatectomy.
Matthew: We were honored to hold this distinction I would like to recognize the diligent efforts from all of the talented study surgeons, who help make this happen.
Matthew: One of the reasons, we believe captain was successful as Tulsa has proven five year cancer outcomes in whole gland ablation.
Matthew: We are taking care of the whole patient in addition to side effects. The patients cancer is front and center as the primary outcome.
Matthew: Captain enlisted the nation's best academic and high volume private surgeons, which was critical for successful randomization.
Matthew: We can show statistical significance and capped in the real world and improvements will be that much more impactful.
Matthew: Now to the data Tulsa.
Matthew: Tulsa completely eliminates blood loss no blood loss means Tulsa can be used on a wider set of patients. For example, those on blood Thinners no blood loss also means no emergencies, no grade four adverse events and no need for <unk>.
Matthew: No blood loss means incision free treatment with safety by design.
Matthew: Tulsa also completely eliminates overnight, Steve for the patient hospital and payer Tulsa patient spend nearly a full 24 hours less in the hospital and actually many of the Tulsa patients whenever in the hospital at all and instead treated in outpatient centers.
Matthew: No overnight means patients or background by dinner or at the restaurant with their family.
Matthew: Meanwhile, all robotic prostatectomy patients are eating hospital food laying in a hospital bed for at least one night if not two.
Matthew: Tulsa patients also experienced statistically and clinically significant less pain during the first week post treatment, which speaks to the fact that Tulsa patients don't require any prescription narcotics and many may not even take any over the counter painkillers during.
Matthew: During the first months after treatment Tulsa patients experienced less extreme interference with mobility self care unusual activities Tulsa patients had statistically significantly less deterioration in overall health for all 30 days measured after the procedure.
Matthew: To put this into context robotic prostatectomy patients take more than two weeks almost three weeks of recovery on average to feel electric Tulsa patient does the very next day after their procedure.
Matthew: Also as giving two weeks back to the patient.
Matthew: We have always known that Tulsa has no blood loss and overnight stay with an improved post treatment patient experience now it is proven with head to head level one hard data.
Matthew: Currently these are the same metrics that drove patient demand and initial adoption of the surgical robot for prostate cancer. Many years ago. We believe that these clinical outcomes lead to high patient satisfaction, which will drive patient demand and widespread adoption.
Matthew: Before I move on to talk about our new BPH module I did want to point out that there was another randomized controlled trial presented at the EUA called farm.
Matthew: Comparing focal ablation to whole gland robotic prostatectomy.
Matthew: Solution that focal ablation was non inferior efficacy and superior and safety had already been presented at previous meetings.
Matthew: The focal ablation arm included both Costa and HIFU, though the presentation did not separate their outcomes. In fact, Tulsa was actually added to the study because HIFU couldnt reached into your prostate where 30% to 40% of cancers reside while the single Center study from Norway is informative.
Matthew: Those before reaching its target enrollment had significant patient crossover between the arms and controversy over the primary efficacy endpoint still lead many questions and answered these limitations are being addressed directly and the captain trial.
Matthew: A second catalyst at the EUA was the introduction of the Tulsa AI volume reduction module. This new module leverages. The AI engine ever previously cleared Tulsa AI country consistent when used on patients with BPH. The fast intelligent workflows will provide surgeons with an estimated total procedure time of 690 minutes.
Matthew: Heartless of prostate shape or size.
Matthew: Fast efficient intelligent automated procedure for BPH with safety by design of no one for us and no blood loss and no overnight states.
Matthew: The limited release of the software is planned for the beginning of June and a full release is currently planned for the beginning of Q4 this year.
Matthew: We believe the Tulsa AI volume production module will be a game changer for surgeons. It will substantially increase the prostate total addressable market and perhaps more importantly, it will also allow surgeons and facilities to play in a very predictable and consistent Tulsa de stacking multiple cases and being the most efficient with their time and resources.
Matthew: All with no overnight stay no blood loss no fulguration no grade four adverse events and no need for patients to discontinue their anticoagulant therapy.
Matthew: All under the same indications for use and same reimbursement codes with in all locations of service.
Matthew: I will now turn the call over to Tom to discuss where we stand with respect to planning and building our commercial organization to support growth.
Matthew: Thank you Matthew.
Matthew: The Arab interventional Mr's here, driven by patient demand for fast recovery, no blood loss and AD based high precision treatment.
Matthew: As stated in Matthew's remarks, the evolution of EMR within prostate cancer has been happening over the course of several decades, but we stand at the frontier of where we are able to bring the MLR into the interventional space to treat prostate disease.
Matthew: Diagnosis and not just track it.
Matthew: Tulsa Pro is the key to unlock it.
Matthew: Regional equipment manufacturers have more devices into the urology call point.
Matthew: The fact that we now have level seven reimbursement from CMS that went live here January one 2025.
Matthew: We have introduced as was mentioned.
Matthew: The Tulsa plus program.
Matthew: Which provides a turnkey solution.
Matthew: Those urologists, who would like to use our technology, but may not have the means to do so based on their current place of service by doing this we are enabling the pathway to adoption to accelerate and also providing the original equipment manufacturers the capability to provide a.
Matthew: Positive cash flow for those that are obtaining the MLR plus Tulsa solution.
Matthew: This pathway has been developing over a period of time and we're ecstatic to be able to build off of the profound clinical services.
Matthew: Made this technology what it is today, which is a technology being demanded by patients that pool is creating enough tension within the marketplace that we are receiving interest from physicians that we may not be calling on ourselves.
Speaker Change: The Siemens magnitude three Max Zero point 505 Tesla is.
Speaker Change: He is the perfect solution for the Tulsa plus program for those physicians that may not have a place of service with a magnet to use.
Speaker Change: It is lightweight it has the largest ore in the world of 80 centimeters and it has a significant reduction in price such that when you combine it with cost plus.
Speaker Change: To substantiate the cost of ownership very easily.
Speaker Change: Also and why well the service the operations the product itself and the installation associated with a one five tesla or larger capital strength.
Is reduced by almost half roughly 48% when you look at the magnitude of the free Max compared to the likes of a one five Tesla.
Speaker Change: In our space as small as 250 square feet.
Speaker Change: When you combine that with the ability to introduce AI.
Speaker Change: <unk> deep resolved youre able to obtain images or quality enough for intervention, but also for diagnostics. We have a complete solution for any site of service. This includes a mobile solution that we can provide in the interim for those customers that would like to start treating Tulsa patients now as opposed to <unk>.
Speaker Change: <unk> for the completion of a brick and mortar operation.
Reimbursement across all channels in terms of a place of service office space laboratories, ambulatory surgery centers and hospitals.
Speaker Change: The feasibility of meeting the cash flow positive.
Speaker Change: Required to meet the Tulsa plus solutions baseline is built off of the following assumptions of 50% Medicare and a 50% private insurance split. The example about the quote is specific to Chicago, Illinois, specifically in ASC and if you were to try to justify the.
Speaker Change: <unk> of Tulsa, plus an MRI and the full Tulsa plus solution. It would require a minimum of 60 MRI diagnostic procedures a week.
Speaker Change: Compare that with.
Speaker Change: Doing cost of procedures, only and that cost of ownership is met with only two tulsa procedures per week, so less than a 100 per year.
Speaker Change: Obviously, we don't believe that it will be one or the other exclusively we believe it will be a combination as suggested by the fact that the MLR is becoming the gold standard in the epicenter of prostate disease care inclusive of not only diagnosis, but also guiding in more biopsies of course, Tulsa pro as an intervention if required.
Speaker Change: For malignant or benign tissue and then the follow up thereafter in terms of tracking the disease state in conjunction with PSA levels.
Speaker Change: Also pro opens up MRI feasibility in urology, one day per week with 2% to four toss us and the other four days with 7% to 10 diagnostic scans and cover the monthly capital lease costs. The construction service full time equivalents and marketing associated with the Tulsa plus program. This is based upon.
Speaker Change: Then on assumptions of 50% Medicare and 50% private insurance for the Medicare rate is one five X for private insurance and the diagnostic scan rate is two point, Alex for private insurance against Medicare rates.
Speaker Change: All of this is also combined with the fact that Tulsa Pro is a zero day global and all of the medical interventions that come before and after our billable events.
Speaker Change: The convergence of market dynamics will create this transformative growth.
Speaker Change: As mentioned in the Urology Society guidelines.
Speaker Change: <unk> adoption of MRI within the urology specialty these next generation interventional MRI platforms, along with their associated reduction reduced price point the key to unlocking. This all is the Tulsa Pro reimbursement went live January one we now have the killer app that will enable commercial interventional MRI.
Speaker Change: Expansion.
Speaker Change: Thank you for your time and continued interest in our company.
Arun: I'd now like to turn it over to Arun.
Arun: Thanks, Tom.
Arun: And good afternoon, everyone.
Arun: And as you heard from Matthew.
Arun: Our clinical story continues to be strong and clear in terms of both clinical benefits of Tulsa and the experience of the patient.
<unk> decision.
Arun: <unk> ability and resulting pan and prostate disease is unmatched by any competing technology.
Arun: The clinical data from captain will be presented at Urological conferences every year for the next 10 years.
Arun: It is the most comprehensive trial done yet and the first level one data for prostate care.
Arun: And I want to emphasize.
Arun: Hence our outcome.
Arun: As one of the primary endpoint of the trial.
Arun: We also believe that as more data is published that it will lead to recommendations from relevant cancer societies, which will most likely lead to guidelines that will effectively require that patients.
Arun: He made aware of telecom.
Arun: Option.
Arun: Adding the BPH module.
Arun: <unk> adds to the physicians ability to create a tulsa.
Arun: From the perspective of ease of scheduling.
Arun: Creating a tossup program is important.
Arun: These developments.
Arun: And the fact that we already know that patients choose Tulsa.
Arun: They are given a choice continues to give us significant confidence that we are likely to be one of the first companies to break the barriers and drives mainstream adoption of cancer.
Arun: And we believe that now proven superior patient experience with Tulsa versus robotic radical prostatectomy.
Arun: Mid to high patient satisfaction.
Arun: <unk>.
Arun: And patient demand, which is the same axis that drove adoption of the surgical robot.
Arun: It's early days.
Arun: And telephones economic proposition is clear as well.
Arun: Our urology.
C codes, which came into effect.
Arun: At the beginning of 2025.
Arun: Not only paid at a higher level seven that our peers are all at levels six but the codes are.
Arun: Also applicable.
Arun: Unrivaled range of treatment settings, including hospitals and imaging centers.
Arun: And office settings.
Arun: As large urology practices.
Arun: So Tulsa is better procedure addressing a larger patient population reimburse at a higher rate and also in more settings.
Arun: Any other prostate disease treatment modality.
Arun: In the interest of time I'm going to close out our prepared remarks here.
Summarizing.
Arun: Three key points.
Arun: We are pleased with the Perry operating results of the Captain trial as it showed statistically significant superiority against robotic prostatectomy.
Arun: We believe that the new Tulsa AI volume production module to treat patients with BPH symptoms will significantly reduce the cost.
Arun: Your time.
Arun: And be very competitive.
Arun: Any other BPH treatment technology.
Arun: We are limited launching volume reduction volume sorry.
Arun: Sorry mobile module.
Arun: A full release beginning later this year.
Arun: We see a significant interest in Tulsa, plus model, where we can set up a new Tulsa program not only by providing that's helpful.
Arun: But also the <unk> and <unk>.
Arun: Key solution with <unk>.
Arun: Financially viable models.
Arun: This ends our <unk>.
Arun: Paired remarks for today.
Arun: With that we're happy to take any questions.
Arun: It has.
Arun: Operator.
Arun: Thank you at this time, we will conduct a question answer session. As a reminder to ask a question you will need to press star one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again, please stand by while we compile the Q&A roster.
Speaker Change: Our first question comes from Ben Hayner at Lake Street Capital Markets. Your line is open.
Ben Hayner: Good afternoon, gentlemen, thanks for taking the questions and congrats on the Katherine data.
Speaker Change: Thank you just first.
Speaker Change: First off for me just recognizing that the captain data kind of came out at the end of the EUA Conference maybe you could share any feedback you've received after.
Speaker Change: Effort yet.
Speaker Change: Anything that you've heard from.
Speaker Change: From clinicians or other interested parties.
Ben Hayner: Ben that's a great question actually Glenn.
Speaker Change: Producing when we were developing the trial and so on.
Speaker Change: Most physicians used to tell us that.
Speaker Change: The.
Speaker Change: There is already a lot of clinical data on this product.
Speaker Change: So the captain data, we always used to single out is going to be all about insurance and guidelines, but I think the feedback actually was far better than I anticipated I think a number of particularly teaching hospitals.
Speaker Change: Wanted to see this data because it gives them the ability to know sort of take it to the mainstream so I do think that the data is actually more important in terms of driving adoption.
Speaker Change: And I think a number of physicians are now looking forward to the next step.
Speaker Change: Bringing this to these.
Speaker Change: Society and so on so that we can start driving towards the guidelines.
Speaker Change: As well as.
Speaker Change: The other thing as you know.
Speaker Change: We're actually the first companies we are the first one sort of actually over that nobody else Thats. Even succeeded in this type of trial. So we're getting we've always gotten high marks for attempting it but now everybody is quite quite pleased that we're at the end endpoint. So yes very.
Speaker Change: Very positive overall debt.
Speaker Change: That's great and then just maybe the plans to presented to commercial insurers.
Speaker Change: When do you start doing that or are those conversations already ongoing.
Speaker Change: Are there.
Speaker Change: Yes, the conversations have begun.
Speaker Change: Have a small but very special team that has started.
Speaker Change: Have.
Speaker Change: Also I think at least we can tell you. The first couple of months of the year.
Speaker Change: Private insurance and wire three approving or a per week a number of the treatments are more and more people are becoming aware of the fact that Medicare is pain, and we're starting to see a little bit of that impact.
Speaker Change: Particularly starting to see impact on the pipeline.
Speaker Change: There.
Speaker Change: And I think that.
Speaker Change: We think that given the fact that we're not the first ablative technology in the space and others.
Speaker Change: Do have reimbursement via.
Speaker Change: The level of <unk>.
Speaker Change: We think that we should have a fairly smooth pathway towards getting the insurance companies to finally make policies as.
Speaker Change: As far as I'm concerned they can.
Speaker Change: Provide the policy is whenever they want to as long as they are.
Speaker Change: Pre authorizing or they are.
Providing.
Speaker Change: Number so that patients can be treated we're going to be okay.
Speaker Change: Excellent.
Speaker Change: Then.
Speaker Change: Lastly for me I don't know if Tom could provide any context or.
Speaker Change: Color on.
Speaker Change: The activity at the Booth.
Speaker Change: Yes.
Speaker Change: Folks.
Speaker Change: There.
Speaker Change: On the commercial side that would be great. If you could.
Speaker Change: Very happy to do so Ben Thank you for the question, yes, so you're asking specific to the booth.
Speaker Change: Activity at <unk>.
Speaker Change: Just a week.
Speaker Change: Weaker 10 days ago was fantastic.
Speaker Change: We're very pleased with the level of interest.
Speaker Change: Physicians across the world.
Speaker Change: And we were ecstatic to be able to introduce the volume reduction module that Matthew and Arun spoke to and the feedback from that was tremendous the pipeline continues to grow.
Speaker Change: The economic modeling and the Tulsa plus pro forma that we shared with interested parties was compelling as led to.
Speaker Change: Great amounts of meetings here in the month of May coming out.
Speaker Change: And the great thing about the program that is is that we had the podium presence that Matthew mentioned, we had the investor analyst events.
Speaker Change: We had the release of the cap and perioperative data. So there was a concert of activities that made awareness of Tulsa pro.
Speaker Change: Be of interest to urologists, we definitely felt that at the booth. So it was a great show.
Speaker Change: Fantastic well, thanks, a lot guys for the color.
Speaker Change: Congrats on the progress.
Speaker Change: Thank you Ben.
Speaker Change: Our next question comes from John Cali at Stifel.
John Cali: Hi, Ron and team thanks for taking the questions.
Speaker Change: First one for me just wanted to sort of.
Speaker Change: Take a look at where we stand on guidance for your apologies if I missed it on.
Speaker Change: Your prepared remarks, but you've previously said something in the 70% to 75% range just wanted to understand based on earlier dynamics, how youre feeling about.
That number and sort of the broader commercial and placement set up for the year ahead.
Speaker Change: Yes.
Speaker Change: Hi.
Speaker Change: Tom do you want to address it.
Speaker Change: Yes. Please thank you.
Speaker Change: Yes, absolutely.
Speaker Change: So it's really mentioned in some of my public remarks, not only at the <unk> event, but some other fireside chats I think that Q1 is in line with the range that we had mentioned of 70% to 75% growth compared to 2024, and we remain steadfast in that that commentary the transitioning from a placement model.
Speaker Change: <unk>.
Speaker Change: Which was the technique through the end of 2024 to a capital model during 2025.
Speaker Change: Linda it's all to know that it's going to be a backend loaded operation rate. The pipeline continues to grow but when you transition from being able to place capital with no upfront cost and charging a higher premium on the disposables associated with the procedure to paying for the capital upfront or obtaining the technology through the Tulsa plus program.
Speaker Change: It changes the pipeline in that respect that it is going to lend itself to having a back end loaded.
Speaker Change: Reach in terms of the numbers that I'm, suggesting here.
Speaker Change: Alright that makes sense.
Speaker Change: Maybe just.
Speaker Change: One more here.
Speaker Change: Commercial focus again, just maybe for you Tom.
Speaker Change: In terms of sales reps and having all the resources you need at your disposal, just where are you now versus where you started are you fully ramped to that extent and.
Speaker Change: Yes sort of just your general progression from from our sales force buildup it would be helpful.
Speaker Change: Yes, great question and happy to speak to the progress of Rune alluded to the specialty and we have together for health economics and market access that team is in place we haven't nurse education team in place. We have of course, our direct sales force in place and I am speaking U S specific at the moment.
Speaker Change: In addition to that we have a market development team that is making great headway with large urology group practice associations theres, some very interesting conversations taking place on a <unk> basis. So overall right on line with where we want to be within.
Speaker Change: Basically a six month sprint here now that we're into the month of May but pleased on the personnel front and pleased with the ability to train and develop those individuals with the expertise that Matthew and its clinical team already had from the decades of work prior to our commercialization efforts here in 2025, so feeling very good about the U S.
Speaker Change: Sales team and we don't spend as much time talking about the O U S business development team, but there is absolutely a great team in place to expand outside of the United States and bring this technology to man all over the world.
Speaker Change: Super helpful. Thanks for taking the questions.
Speaker Change: My pleasure. Thank you.
Speaker Change: Our next question comes from Michael Freeman at Raymond James.
Speaker Change: Good good.
Speaker Change: Good afternoon, everybody and thank you very much for taking the questions.
Speaker Change: I Wonder if you could.
Speaker Change: Sure any color.
Speaker Change: On the first in first quarter.
Speaker Change: You might be receiving on.
Speaker Change: Is the engagement.
Speaker Change: Medicare and Medicaid patients with coal side. Given this is your first full quarter of CMS reimbursement.
Speaker Change: Any color on perhaps that.
Speaker Change: Pick up in utilization or just or just general engagement with with.
Speaker Change: With this coverage.
Speaker Change: Yes.
Speaker Change: Michael Yes, I mean.
Speaker Change: This is a very important point and.
Speaker Change: I think the first quarter.
Speaker Change: In terms of revenue, we are where we expected and we expected that.
Speaker Change: The.
Speaker Change: Reimbursement itself.
Speaker Change: Yeah at least in the first couple of months was not going to have a major impact because we were just starting and modest of Medicare payments tend to be 60 90 days out.
Speaker Change: So in the early part of the quarter, we didn't see much of an impact but in the later part of this definitely are starting to see that.
Speaker Change: Our billing and they are getting paid.
Speaker Change: And.
Speaker Change: The work that has gone out to the patients and that the pipeline.
Speaker Change: As respect to.
Speaker Change: A number of sites is building.
Speaker Change: With the patient population.
Speaker Change: And I think that when Tom talks about the the fact that we.
Speaker Change: Our far more confident than we have been in our past regarding our ability to deliver the numbers is much higher because of that. Again, it's a little bit limited and the March from first quarter, but yeah, I don't see anything that. [inaudible]
Speaker Change: Would cause me to think that there is any issue related to reimbursement. [inaudible]
Speaker Change: Okay, all right. Thank you, Arun. Maybe there's a question for Tom. I wonder if you could provide some color on your plans for marketing.
and at the AOA proceedings, you discussed. [inaudible]
Speaker Change: The potential for some XNFL-type spokespeople, some different forms of media that you're engaging with. Like, when should we expect to see some profound marketing materials out in the wild?
Speaker Change: Great question, and thank you for your interest in knowing what was suggested at that meeting here on this call. And I apologize for not making those same remarks, but absolutely.
Speaker Change: Full portion that we're experiencing is that we have patients who are so satisfied with the procedure. There's data that suggests that nine out of ten toss of patients would recommend the procedure to family or friends. We're getting unsolicited inquiries from patients. How can they help spread the word?
Speaker Change: and so that patient pool, we're starting to harness and get the what I would call content.
Speaker Change: Collected so that we can begin an immersive campaign on the digital media front, the social media front, the podcasting front, and the list goes on.
Speaker Change: and there's definitely folks that have been treated that are X-NFL players and we'll be able to talk more about that in the coming announcements from the organization. So I'll just need to remain steadfast and letting you know that that's in progress.
Speaker Change: But that's just a taste of what's to come, and then when, the time is now. So, the ratcheting up of the...
Speaker Change: Digital Marketing Efforts and just creating the general awareness and buzz of Tulsa Pro is well in hand and a lot of it ties back to what you just asked to ruin specific to Medicare is that the words getting out amongst the prostate disease community that you contain this treatment.
Speaker Change: from your Medicare reimbursement by being a 65-plus-year-old man here in the United States of America. And we're seeing that in the communications that are taking place with our nurse education team as well to suggest that fact is just that fact.
Speaker Change: So hopefully that gave a little bit color in terms of the question that you'd asked.
That's very helpful. Can I guess.
Speaker Change: Oh, I'll take another crack at an earlier question. I wonder, you know, you talk about back-end waiting of your pipeline, you know, toward the end of this year to reach your, you know, 70th percent revenue increase goal.
Speaker Change: I wonder if you could provide any further color on how this pipeline is looking and what we might be able to expect for pacing throughout the year any finer detail you can provide.
John McAulay, John McAulay, John McAulay, John McAulay,
Speaker Change: So I'll take a stab at answering that question. Yeah, to the best of my ability.
Speaker Change: So I think there's a whole bunch of different ways we can look at your question and then also my statements around being back and loaded right is that there's the traditional brute force method.
Speaker Change: of delivering new technologies in the United States healthcare market, where you're going to the hospital, right, and you're working with the top 50 cancer centers, which I think we'd all agree is not only necessary, required but desired to validate technologies such as Tulsa Pro.
Speaker Change: and the company said a tremendous job of doing just that.
Speaker Change: As a number of our highest treating centers fall within that top 50 Cancer Center umbrella. There's more to come. And to move through that process, unfortunately it's not an overnight one, but it's a process that does have an end, but it can't end unless you start. So the brute force efforts taking place. [inaudible]
with those Top 50 Cancer Centers.
Speaker Change: There's also some burgeoning relationships where we have with other folks.
Speaker Change: in the space regarding MRs, right? We mentioned the Siemens relationship, which I'm certain everyone knows, is not exclusive. So we also have working relationships with Phillips and GE and other MR manufacturers. So tying in the fact that we've got this reimbursement component. So let's go ahead and get started.
Speaker Change: to marry up with their already strong or developing value proposition for acquiring their technology that's helping to accelerate the pipeline so we can pull forward on opportunities outside of your traditional hospice setting. [inaudible]
Speaker Change: Henceforth, why we're very bullish on the ambulatory surgical center, setting with urologists, and even the OBL setting, depending on the state and location associated with the gypsy rate from Medicare for that particular locale. So, all in all.
Speaker Change: We're right where we're supposed to be, in my humble opinion.
Speaker Change: Yeah, and I think I can also add, you know, the point that the waving lists.
So...
Speaker Change: Michael, it is a difficult question to answer because I know you want to know, are you going to close how many deals you're going to grow next week? And I wish I could tell you that but I cannot. But I think all of the activities
Thank you.
and all of the R.D. indicators are...
the ones that are giving us that confidence, like... [inaudible]
Speaker Change: More patients are coming in, more re-investment members working, pipeline is there. The failed team, as Tom talked about, is...
Speaker Change: In good shape, overall, we are increasing our social media marketing presence. There is a podcast that will come out in another week or so.
Speaker Change: That is also quite relevant and will be in the social media quite a bit as well. We have some big
Speaker Change: Big Ben, Celebrity Dewan, Dr. Gontal, so we're now prepared to talk about it. I think you'll be hearing about all that, which will give you more color.
Speaker Change: Okay. Okay. Thank you very much. I'll pass it on now.
Thank you, Michael.
Speaker Change: As a reminder, if you have a question you can press star one on your telephone and wait for your name to be announced.
Our next question comes from Scott McAuley at Paradigm Capital.
Scott McAuley: Hi, everybody. Thanks for taking the questions. Some have been answered already, but I've got one or two left over here. So just on the capital revenue side of things for the quarter, I think is about 800,000.
Speaker Change: You know, new installations or those systems that have already been in place that are now kind of converting to the capital model and acquiring the hardware outright or any other details you can share on that capital revenue line of things.
I think they are mostly news sites.
Speaker Change: There might be one that was confirmed that they are mostly new sides.
Speaker Change: Yes, so as an additional color we did have two new sites and one conversion from existing site.
That's great. Really helpful. Thank you very much.
and just lastly on the Tulsa Plus side.
Speaker Change: So obviously great to hear about that at the AUA event and reiterated here. I guess any other detail on maybe even timing when that would be available. And then on the economic model, especially if
You're looking at helping Siemens.
Speaker Change: with, you know, there, if you sell a Tulsa Plus, you get the Tulsa Plus with the Siemens MRI machine, so...
Do you see any benefit from that?
Speaker Change: and how that agreement is structured if you benefit beyond just placing the Tulsa hardware.
Scott, we do, we are working on the compatibility. [inaudible]
We think we will be there by end of Q3.
Speaker Change: We think by that time we should we're also working in parallel as Tom described with certain other hospitals or outpatient clinics where these would be...
Speaker Change: Situated, we think by that time we should be able to announce some deals as well.
So, basically within the next.
Speaker Change: for four months or so. We should be able to give you specific types and nature of the deals.
Speaker Change: Our long-term goal with respect to, you know, the Tulsa Plus model is that we want to focus more on the Tulsa, to have a new side.
Speaker Change: and, you know, the NMR itself we are at the moment flexible could, you know, if it makes sense.
Speaker Change: to come through us. We will do that because I think at the end of the day it's about gliving to us the seizures and if it comes directly from the Siemens, we're going to be very open about it, but at the end of the day we are...
Speaker Change: The financial models and the whole justification for this and then the operation and shutting up the programs, we will take full responsibility for all of that.
Speaker Change: Arun, if I may add some comments, I hope that I wasn't suggesting that Tulsa Plus is only inclusive of offering a magnet as well.
Speaker Change: It could very well be that there's a compatible magnet that exists already with the place of service where the customer would like to use the technology.
Speaker Change: with the needy anesthesia equipment or they need a new body coil.
or a software revision update.
Speaker Change: Those are all solutions that were capable and offering to provide so that there was one vendor you're dealing with and that's profound.
so that we can provide suit to nuts.
Speaker Change: The capabilities that you need to launch the Tulsa Program, and I do stress program because
Speaker Change: Tulsa Plus comes with a Tulsa Program, which includes the launch of the program, not only in terms of clinical support, but staff education, position outreach, marketing media, PR events, etc., and a whole bunch of other items that go into the Tulsa Program itself.
Speaker Change: Built around Palsa Plus, and of course the epicenter is the Palsa, but we want to provide the solution depending on the customized needs of the end user, so it's mass customization in that respect.
Speaker Change: It's great. I appreciate it. Thanks for answering the question, guys.
Speaker Change: I'm showing no further questions at this time. I would not like to turn it back to Dr. Menawat for closing remarks.
Dr. Menawat: Thank you so much, looking forward to updating everyone in Q2 and our Gordon Pipeline. Thank you again, have a wonderful evening.
Speaker Change: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.
Speaker Change: [music].