Q1 2025 electroCore Inc Earnings Call
Speaker Change: You have joined the meeting as an attendee and will be muted throughout the meeting.
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Speaker Change: Greetings, and welcome to the electroCore First Quarter 2025 earnings conference call. At this time all participants have been placed in a listen only mode. Please make sure to mute yourself. A question and answer session will follow the formal presentation.
Speaker Change: As a reminder, this conference call is being recorded. It's now my pleasure to introduce your host, Dan Goldberger, electroCore's Chief Executive Officer.
Speaker Change: Thank you all for participating in today's ElectroCore earnings call. Joining me today is Joshua Lev, our chief financial officer, and our investor relations firm, FNKIR. Earlier today, ElectroCore published results for the first quarter and did March 31, 2025.
Speaker Change: A copy of the press release is available on the company's website.
Speaker Change: Before we begin, I'd like to remind you that management will make statements during the call that include forward-looking statements within the meeting of the federal securities laws which are made pursuing to the safe harbor provisions of the private securities litigation reform act of 1995. Thank you very much.
Speaker Change: Any statements contained in this call that are not statements of historical facts should be deemed to be forward-looking statements, all forward-looking statements, including without limitation any guidance, outlook, or future financial expectations or operational activities and performance.
Our base upon the company's current estimates and various assumptions.
Speaker Change: These statements involve material risks and uncertainties that could cause actual results to events to materially differ from those anticipated or implied by these forward-looking statements.
Speaker Change: Accordingly, you should not place undue reliance on these statements, for a list of the risks and uncertainties associated with the company's business.
Speaker Change: Please see the company's filings with the Securities and Exchange Commission.
ElectroCortis: ElectroCore just claims any intention or obligation except is required by law to update or revise any financial projections or forward looking statements, whether because of new information, future events or otherwise.
ElectroCortis: This conference call contains time-sensitive information that is accurate only as of the live broadcast today, May 7, 2025.
Speaker Change: This quarter marked an acceleration of electroCore's transformation into a broader bioelectronic technology company offering medical devices and wellness products for a variety of customers.
ElectroCortis: This transformation significantly broadens our addressable market and diversifies our revenue.
ElectroCortis: A key component is the acquisition of the quail product line from Neurometrics Inc. I'll discuss this acquisition later in the call.
ElectroCortis: ElectroCore was founded in 2005 and pioneered non-invasive vagus nerve stimulation.
ElectroCortis: Today, the company offers a suite of non-invasive bioelectronic technologies that reduce chronic pain and improve quality of life for patients and consumers in the United States and select markets overseas.
ElectroCortis: Our portfolio includes a robust pipeline of future indications and use cases as clinicians, researchers, and wellness advocates that advance our understanding of the benefits of bio-electronic technologies.
ElectroCortis: Our mission is to improve health and quality of life through innovative, non-invasive bio-electronic technologies. All our product offerings are rooted in clinical science. Science and data will always be our guiding star.
ElectroCortis: We have demonstrated sustained growth with a five-year compound annual growth rate of approximately 58%. In the first quarter of 2025, we reported revenue of $6.7 million, a 23% increase over the first quarter of the prior year.
ElectroCortis: Gross margins were 85% in the first quarter of 2025 as compared to 84% last year, and we expect our gross margins to remain in the mid-80s.
ElectroCortis: Prescription Gamma Corps VA revenue grew 22% to $4.7 million in the first quarter of 2025 from $3.9 million during the first quarter of 2024.
ElectroCortis: 175 VA facilities have purchased prescription gamma core products through March 31, 2025, as compared to 151 through March 31, 2024.
ElectroCortis: I am pleased to report a return to sequential growth in the VA hospital system after a slowdown in the fourth quarter due to macro forces and a restructuring of our field sales organization.
ElectroCortis: As these headlines have abated, we are regaining momentum. We started adding field sales head accounts in the second quarter of 2025, March and April 25 monthly revenues in our VA channel have accelerated to about $1.7 million.
Speaker Change: The VA Hospital Administration headache centers of excellent estimates approximately 600,000 patients are being treated for headache in the VA hospital system, including approximately 24,000 plus or headache patients.
Speaker Change: We believe there are as many as 550,000 fibromyalgia patients in the VA hospital system based on published incidents and prevalence data. We continue to make our therapy available, either through our federal supply schedule contract or via our distribution partnership with level government services.
Speaker Change: Since 2022, we've dispensed Gamacore devices to approximately 9,500 veterans leveraging these contracting mechanism, which we believe represents approximately 1.6% of the total addressable headache market within the VA system.
Speaker Change: Neurometrics has previously dispensed approximately 350, 12 fibromyalgia stimulators in the short time that product has been available through the VA, leaving plenty of room for growth of the 12 fibromyalgia product line.
Speaker Change: Longer term, we will evaluate market access to other third-party pay or systems in hospital networks for our prescription product sleep.
Speaker Change: Tuvega is our directed consumer general wellness brand for stress, relaxation, quality of sleep, and mental acuity. In the first quarter of 2025, Tuvega net sales were approximately $1.1 million. It was $187 per cent increased from the first quarter of 2024.
Speaker Change: Our revenue return on advertising spend was approximately 2.26 for the first quarter of 2025. In other words, during the first quarter of 2025, for every $1 we spent on media, we generated $2.26 of revenue.
Speaker Change: Trivega return rates remain steady at approximately 10 to 11% of shipments for the first quarter of 2025. We are increasing our immediate budget 5% every month to continue driving growth in this champ.
Speaker Change: Since launching Truvega, we have sold more than 14,000 handsets and customers have conducted in excess of 500,000 sessions using the mobile app. We believe that the Truvega business will continue to scale if we can maintain or improve these metrics and add product offerings.
Speaker Change: Following the successful launch of Trivega Plus in April 2024, we began exploring additional channels to reach consumers, including influencers, affiliates and resellers.
Speaker Change: In February , 2025, we launched Trudeagle Plus on Amazon, since launching on Amazon, more than 200 units have sold through that platform.
Speaker Change: More recently, we announced that Trivega Plus now works with the Apple Health Act, providing our Trivega Plus customers using the iOS operating system with an ability to better track their
Speaker Change: Our US Prescription Channel recorded revenue of $289,000 during the quarter ended March 31, 2025, down 33% from Q1, 2024.
Speaker Change: As expected, many cash pay customers have migrated to the Trudega brand as awareness grows, and we continue modeling flat revenue from this prescription channel for the time being. As of March 31, 2025, we have enrolled 144 Trudega Plus partners, including 49 Gconcierge accounts who offer both product lines. [inaudible]
Speaker Change: We look forward to adding 12 fibromyalgia to these accounts as well.
Speaker Change: Revenue from channels outside the United States, or OUS, of $513,000 for the quarter ended March 31, 2025, increased from $449,000 for the same time last year.
Speaker Change: Most of our OUS revenue contains to be generated in the United Kingdom by prescription gamma core sales funded by NHS, and we model flat revenue from this category for the time being. We are on track to launch Truvega in the UK and Canada later this year.
Speaker Change: Joshua discussed operating expense in cash, trajectory, and more detail. Structurally, the first quarter always has higher disbursements as we pay down liabilities approved over the course of the prior year, and it curl legal and audit expense associated with year end reporting. . .
Speaker Change: This year we had additional one-time expense for severance associated with an internal restructuring and finalizing and closing the acquisition of neurometrics.
Speaker Change: while we used about $4.2 million in cash during the first quarter for all these disbursements.
Speaker Change: Our modeling with conservative revenue growth anticipates about $4 million net cash required for the rest of 2025. We're currently on track to spend less than $2 million in net cash in the second quarter, with further declines expected as revenue growth throughout the year.
Speaker Change: Let me take a moment to walk you through our path to profitability. Seasonal and non-recurring expenses of about $665,000 incurred in the first quarter will not repeat in the second, third and fourth quarters. Meanwhile, the contribution margin of incremental revenue is about 65% with our current product mix.
Speaker Change: For all these reasons, we modeled that the business could be cash neutral with quarterly revenue of about $9 million dollars.
Speaker Change: That's about 34% more than the $6.7 million revenue we were reporting for the first quarter. And I believe we can get there towards the end of this year or early in 2026.
Now, I'd like to turn to our business development activities.
Speaker Change: Last week, we closed the previously announced acquisition of neurometrics, giving us access to the QEL platform and accelerating our mission to become the clear leader in the bioelectronic health and wellness sector.
Speaker Change: US consumers spend nearly $20 billion annually out of pocket for chronic pain treatments, including headache and fibromyalgia among others. It's estimated that approximately 6% of US adults suffer from fibromyalgia, and there are a few credible treatment options available today.
Speaker Change: Well, there's an exquisite treatment modality available by prescription for treating fibromyalgia and over the counter for relieving lower extremity pain. The product line has been underfunded for the last year and a half as neurometrics went through its strategic process.
Speaker Change: A well-revenue was about $700,000 in 2024 and $170,000 in the first quarter of 2025 based on preliminary unordered numbers.
Speaker Change: We have removed the inventory and assets to our RAPAWA New Jersey facility. We will be supplied limited until we can restart production in RAPAWA. So, Q2 2025 Remembrance is likely to be similar to Q1 2025.
Speaker Change: Once Rockaway is up and running, we will add prescription 12 fiber myology to our prescription distribution channels and 12.0 for lower extremity pain to our directed consumer channels.
Speaker Change: I'm optimistic that we'll be able to increase revenue in the back half of 25 and generate meaningful revenue from the product line in 2026.
Speaker Change: 12-Probomyalgia is a prescription, non-invasive nurse simulation device. 12-Fiberomyalgia is FDA authorized, covered by 27 issued U.S. utility patents, and neuro-metrics invested more than 10 years and tens of millions of dollars in clinical work and product development. [inaudible]
Speaker Change: Well-problem, myalgia provides flexible precise, high-power nurse stimulation in a form factor the size of a credit card.
Speaker Change: Our business becomes more complex as we add new products and services like well. We'll migrate towards reporting revenue results by channel as well as by product category as we go throughout the year.
Speaker Change: We're excited about the acquisition of Neurometrics and our confidence that we can leverage our established distribution channels, especially the VA hospital system, to accelerate adoption of the Qualifier Romyologist solution.
Speaker Change: On February 27th, 2025, we announced a paid distribution agreement with Spark Biomedical, giving us access to the Sparrow Ascent Product Line.
Speaker Change: An FDA-clear non-invasive transcutaneous or regular neural modulation device available by prescription for the treatment of opioid withdrawal symptoms.
Speaker Change: We plan to offer Sparrow in a limited number of VA hospital sites beginning in the second quarter of 2025. It's successful.
Speaker Change: We hope to expand distribution later this year. We believe a 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.
More information on Spark Biomedical can be found at www.sparkbiomedical.com
Josh: Now, I'll turn the call over to Josh for a review of our financials and select guidance, Josh.
Josh: Thank you, Dan. Net sales for the quarter-ended March 31, 2025 were $6.7 million in increase of 23% as compared to $5.4 million for the quarter-ended March 31, 2024.
Josh: The increase of $1.3 million is due to an increase in net sales across our prescription gamma core devices sold in the VA and outside the United States, and revenue from the sales of our non-prescription general wellness tube aga products.
Josh: Gross profit for the quarter-ended March 31, 2025 was $5.7 million as compared to $4.6 million for the quarter-ended March 31, 2024. The increase in gross profit was primarily driven by the increase in that sales.
Josh: Rose Margin was 85% for the quarter-ended March 31st, 2025, as compared to 84% for the quarter-ended March 31st, 2024.
Josh: Total operating expenses in the first quarter of 2025 were approximately $9.5 million as compared to $8.4 million in the first quarter of 2024.
Josh: Research and development expense in the first quarter of 2025 was $642,000 as compared to $3999,000 in the first quarter of 2024. This increase was primarily due to an increase in headcount.
Josh: We expect R&D expense to continue at this level for the next few quarters.
Josh: Selling General and Administrative Expense in the first quarter of 2025 was 8.9 million dollars as compared to 8 million dollars in the first quarter of 2024.
Josh: This increase was primarily due to our greater investment in selling and marketing activities consistent with our increase in sales, in increase in expenses associated with year end reporting, and separation costs associated with head count reductions. Thank you very much.
Josh: For the remainder of 2025, we plan on continuing to make targeted investments in sales and marketing to support our commercial efforts and expect our general and administrative expenses to be in line with 2024 expenses.
Josh: Gatt Netloss in the first quarter of 2025 was $3.9 million compared to $3.5 million in the first quarter of 2024.
Josh: The increase in gap net loss is primarily attributed to a change in below-the-line items.
Josh: including $83,000 of interest income and $48,000 of benefit from income tax, offset by $164,000 of transaction fees in the first quarter of 2025.
Josh: As compared to $225,000 of interest income and $122,000 of benefits from income tax offset by just $4,000 of other expenses during the first quarter of 2024.
Josh: Net loss per share for the first quarter of 2025 was 47 cents as compared to a 53 cents per share net loss in the first quarter of 2024.
Josh: Adjusted EBITDA net loss in the first quarter of 2025 of $3.1 million was flat compared to the first quarter of 2024.
Josh: A reconciliation of GapNet loss to non-Gap-adjusted EBITDA net loss has been provided in the financial statement tables included in today's press release.
Josh: Cash, Cash equivalents, marketable securities, and restricted cash at March 31st, 2025, totaled approximately $8 million, as compared to approximately $12.2 million as of December 31st, 2024.
Josh: Netcast use and operating activities for the first quarter of 2025 was $4.4 million as compared to $1.3 million in the fourth quarter of 2024.
Josh: The increase in net cash use in operating activities is due to seasonal expenses and changes in working capital typically realized in the first quarter of the year.
Josh: For the full year of 2025, we expect total revenue to be approximately $30 million, and Netcash used for the next three quarters to be between $3.8 million and $4.3 million.
And now I'll turn the call back to Dan.
Dan Goldberger: Thank you, Josh. I'm excited about the opportunities ahead. Revenue continues to grow in our core business lines and we see momentum in both our VA and direct to consumer channels.
Dan Goldberger: We're moving through the second quarter of 2025 with new bio-electronic products and technologies that we believe fit extremely well into our established channels.
Dan Goldberger: In addition, we are past the quarter that carries the highest level of cash displacement, and I'm optimistic that our operating metrics will continue to improve as revenues grow. The one-time expenses fall away, and we maintain discipline over operating expenses.
Dan Goldberger: Demand for GammaCore in the VA channel continues to grow based on our clinical performance and our increased presence in the field. Our VA revenue had a slow January but accelerated nicely in March and April.
Dan Goldberger: We received a new FSS contract, which will be effective on June 15, 2025, for at least five years until 2030, and we've begun working with level to make the Kwell and Sparrow product lines available through their government contracting platforms.
Dan Goldberger: We rely on our field sales organization to drive revenue growth into VA hospital and other prescription and B2B channels.
Dan Goldberger: During the second quarter of 2025, we've refocused our efforts on onboarding new headcount.
Dan Goldberger: As of May 2025, we completed a restructuring of our field sales function, and we have 49 active 10.99 entities representing about 80 sales agents, including sub-retts, managed by 10 Territory business managers who are salary employees.
Dan Goldberger: We expect the size of our team to grow in the second half of 2025 as we balance investment in future revenue growth with the path to profitability.
Dan Goldberger: Travega Plus has been favorably received by the market since its April 2020 launch. The brand continues to show a tons of potential as a direct to consumer general wellness offering.
Dan Goldberger: We sell Trivega products direct to consumer through our e-commerce site, www.truvega.com and Amazon.com.
Dan Goldberger: Truega is also available through a small but growing number of business-to-business-to-consumer initiatives, such as Truega Partners.
Proxit Worth, and through a handful of resellers.
Dan Goldberger: We continue exploring the expansion of the Travega Proposition through new product offerings and new channels like Amazon and new features, like the integration with the Apple Health App.
Dan Goldberger: The pipeline of interest from different branches of our active duty military continues to develop for our taxed-in products and taxed-in revenue will continue to be hard to predict as active duty units evaluate and purchase involved for pilot deployment.
Dan Goldberger: For the first quarter of 2025, our sales and marketing expense increased by approximately $432,000 while sales grew by $1.3 million.
Dan Goldberger: We believe this leverage is sustainable as we begin selling additional products, such as and sparrow ascent to our existing channels.
Dan Goldberger: We continue working towards adding new products to our established sales channel. The acquisition of Neurometrics and the distribution agreement with Spark Biomedical will provide patients and prescribers with more non-invasive bioelectronic therapies for chronic pain and opioid withdrawal issues respectively.
Dan Goldberger: These products along with the existing products that we currently sell into the Prescription VA channel allow our field sales team to offer a growing suite of bioelectronics self-administered therapies for certain debilitating conditions.
Dan Goldberger: As we continue to add new 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.
Dan Goldberger: I do not think we have much exposure to the recent changes in tariff policy. A small fraction of our direct material cost, mostly batteries, comes from China and Southeast Asia. Even if the cost of those components doubles, it would amount to only a few points of our gross margin.
Dan Goldberger: In summary, I believe we are poised for growth and improved operating metrics through the remainder, it's 20 to 25, and we will have a variety of strategic levers to continue growing the business.
Speaker Change: I want to make a take a moment to recognize the extraordinary efforts and success of the Neurometrics team led by Dr. Shygazani. I hope that we can be good stewards of their legacy.
Speaker Change: At this time, I'll return 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. There are two ways you can ask a question during this part of the webinar.
Speaker Change: The first option is to use the Raise Your Hand feature, located at the bottom of your screen. When you click that, the operator will know you want to ask a live question and you'll be placed in tequila to be called on. Just a quick note when you're called on, you may need to unmute your microphone.
Speaker Change: The second option is to use the Q&A widget. This allows you to type out your question. We'll take questions from there as well. We don't get to your question today due to time constraints. Someone from the IR team will follow up with you after the call. The first option is to use the Q&A widget. The first option is to use the Q&A widget. The first option is to use the Q&A widget.
Speaker Change: Now with that, the pause for a moment to give everyone time to add their questions to the queue.
First question comes from Tyler Berson.
Hello, Joshua and Dan, can you hear me?
Tyler Burson: Yeah, hi Tyler. How are you today? Doing great, congrats on the quarter, really excited to see what Neurometrics can do here in 2025. A couple of quick questions on that product line that maybe you could help me out with. The first one, so it looks like the company specifically across the board for Neurometrics was getting a gross margin of about 55% at the end of 2024. What kind of estimates do you have for, well, regarding margin when you kind of get to the end of this year with manufacturing setup?
Tyler Burson: A great question, Tyler, and unfortunately I don't have a precise answer for you yet.
In the last week, we've shut down the manufacturing line.
Tyler Burson: In Wuburn, moved the raw material and finished goods here. Once we restart the manufacturing line and move the supply chain, the various vendors that supply components to us.
We'll be able to better answer that question.
In general, I think our overhead absorption.
Tyler Burson: Should be substantially better than the legacy Neurometrics structure that are unfortunately as the business.
Declined, they were under absorbing. [inaudible]
Tyler Burson: in their previous structures. So I'm optimistic that we'll be well above the 60% mark, but I really can't be any more precise than that right now. In 90 days, when we do our call, we'll have better numbers for you.
Speaker Change: Great. And in that same kind of vein that you kind of highlighted there at the end that you're not really concerned about tariff complications regarding the electroCore product line regarding the composition of the quell. Are there any components or parts of that device that might be more subject to kind of tariff exposure? Thank you.
Speaker Change: We don't think so. The electro-mechanical components were generally come from domestic suppliers.
Speaker Change: There are some components that do come from Southeast Asia, but we've got plenty to get started with.
Speaker Change: So, I think the exposure is similar to what we have in our Truvega and Baffire product lines.
Tyler Burson: Okay, fantastic. We'll have any more questions to get back in queue. Thank you both again. Thank you, Tyler.
Speaker Change: Thank you, and a reminder again, if you have a question, you can use the raise your hand button or use the Q&A widget. The next question comes from Jeff Cohen. The question is,
So the cash at Mark's 31st.
Speaker Change: is probably about where we are today. The total cost of the transaction was not cash.
Speaker Change: At the risk of oversimplifying the compensation to shareholders of Neurometrics came from cash that was previously on the Neurometrics balance sheet.
Speaker Change: We had some out-of-pocket expenses for our lawyers and our auditors, but those were relatively small.
Speaker Change: Great, thank you. Another question, follow-up, any development news on the Kaiser System?
Speaker Change: So, we continue to have small revenues through our Kaiser relationship. We've increased the number of prescribers.
Speaker Change: I mentioned in my prepared remarks that we are adding headcounts to our sales function and specifically we are adding headcounts to focus on the Kaiser opportunity on the West Coast. So I continue to see that as a back half of this year opportunity.
Speaker Change: Great. Thank you. We're going to take our next question from R.K. from H.C.W., R.K.
Good afternoon, can you hear me? Yeah, I are. Okay. Okay.
Alright, so regarding, you know, that's just a top line.
Speaker Change: How should we think about growth of that and also on the tax team product?
Speaker Change: I know it is very lumpy and it is very difficult to model or to predict. But in general, what are the pushes and pulls on that part of the segment of the business?
Speaker Change: Yeah, I'll start with it with tax them first. I think we said we had $90,000 of revenue from tax in the March 31st quarter.
Speaker Change: We will have a similar revenue line in the current quarter. We have RFPs that are out there for several million dollars of business.
Speaker Change: But I can't see beyond this sort of $100,000 per quarter revenue line that we're currently running.
Speaker Change: Most of our revenue, as you know, comes from our prescription gamma core business and most of that is in the VA hospital system or in the United Kingdom through the NHS.
You know, the VA hospital business returns to sequential growth.
Speaker Change: April was strong, and so I think we're going to see sort of mid-high single-digit sequential growth in that channel.
Speaker Change: In the current quarter, and with the addition of Kwell, with the addition of head count in the field, I think we're going to be accelerating beyond that sort of...
Speaker Change: Lowell, sorry, mid-high single digits back into the teens, mid-teens growth as we go through the year.
Speaker Change: Fantastic. On the VR business, as you said, you know, you have additional three years.
Speaker Change: that you recently got up good. So with that wind, wind, wind, winds, are you trying to [inaudible]
Speaker Change: You know, more support in terms of still in the VA hospital, and you know, with now that you have additional products, like spiral products.
Speaker Change: How much resources are you spending and how quickly can you expand the business?
Speaker Change: I know you're keeping your eyes on profitability, but if that's not something that you need to be concerned that way, Eric Water, how much more can you depend on the growth of business as much as we can?
Speaker Change: Yeah, so excellent question. It's a five-year contract, not a three-year.
Speaker Change: It used to be clear. It's okay. I have to brag when we come. Josh did a great job on that.
Speaker Change: We had, we restructured our sales leadership somewhat, and I don't want to talk too much about-
Hiring practices on a public call.
We're gonna add some more. We're gonna add some more.
W-2 employees as we go through.
the current quarter.
Speaker Change: Each W-2 employee gives us an opportunity to engage as many as 8-10, additional 10-99s, and so...
Speaker Change: I expect that you'll see us adding headcount pretty aggressively now that we've gotten through the more painful restructuring part of our sales alignment. So, sorry about being a little bit vague, but I need to be careful when we talk about personnel issues.
Speaker Change: No, no, I totally understand that. And then, you know, on the two-acre business.
Speaker Change: It seems to be going pretty, pretty good. So, what is it? How much I know you started talking about utilizing Amazon and other resellers.
Speaker Change: How much of that effort is actually, you know, converting into meaningful dollars. I know it's early stages, but still, what sort of GPI or you're watching and you're actually recognizing?
Speaker Change: Yeah, so Amazon, I think we said in our prepared remarks, there was a few hundred units that we sold through Amazon, which is a pretty fast start for middle of February to the end of March.
Speaker Change: The economics of Amazon are different, and so we need to make sure that we understand our total cost of sales in that channel, but everything looks pretty exciting right now.
Speaker Change: And so I think a conservative way to model it is that if we're increasing the media spend 5% per month, that's what kind of revenue growth we are looking for as well.
Speaker Change: In addition, at the risk of repeating ourselves, we also went live on Apple Health.
Speaker Change: in just the last couple of weeks. And that's going to bring additional eyeballs, additional awareness to the to the brand. And so I'm optimistic about getting a lift from that as well.
Speaker Change: business, and the neural matrix, which is just completely artificial. I know it's early, but how?
Speaker Change: How soon could they become meaningful? Is it more in the back end of this year? Or should we be really careful and wait till I try to get totally excited about that?
Speaker Change: Yeah, someplace in the middle, Sparrow, we are limited to six.
Speaker Change: Pilot Sites, and we're going to be very conservative about making sure we have a business model that works before we expand that. So I think...
Speaker Change: from a material revenue, that's very much a 2026 story pending success in the pilot locations where we are launching.
with Quell. These are unaudited preliminary numbers, but...
Kwell Fibromyalgia, [inaudible]
April was on that same pace.
Speaker Change: Again, it's unordered preliminary numbers that we inherited. So, I think that kind of revenue $150,000 for the current quarter.
Speaker Change: We're going to be supply limited until many can get the manufacturing facility here in Rockaway, validated.
But once we do that, once our...
Manufacturing Facility is validated and we have supply.
I think we can have some upside surprises.
Speaker Change: putting the Quell Fibromyalter project into the hands of our sales guys. They're pretty ex...
Speaker Change: We're pretty excited about it. Our sales folks are pretty excited about it as well. Some of our customer service folks are already using the device to manage their own conditions. So it could be a nice upside surprise for us.
Speaker Change: Last question from me, I'm sorry I'm talking about the R&D friends. I think if I heard Josh correctly, you know, you're expecting to increase a little bit of the R&D experience.
Speaker Change: So what are the things that we should be looking at from the R&D printing in terms of additional indications or things that could help sustain the growth?
Speaker Change: So yeah, so great question. We're going to hold our R&D line pretty steady at that $650, $640, $2,000.
Most of that is our medical affairs staff.
Speaker Change: And most of what they're going to be doing this year...
Is sale support?
Speaker Change: talking about the data in post-traumatic stress disorder, talking about the data.
Speaker Change: The recently published data that came out around traumatic brain injury, you know, with our new Sparrow product, with our new fibromyalgia product.
being available to support the field sales team.
Speaker Change: We are still waiting for response from the FDA. I think I mentioned last time that we had a sponsor meeting in person at FDA in March of this year. We're still waiting for the FDA. We're still waiting for the FDA in March of this year.
Speaker Change: response to that meeting and we're kind of on hold with PTSD until we get that.
RK: Thank you. Thanks for doing all my questions. Of course, thanks. Thanks for your support, RK.
Speaker Change: We have a follow-up question from Jeff Kohn, who would like some commentary around the SGNA spend for 20, 25, and the plan keyed in for those expenses.
Speaker Change: Josh, have any thoughts on that? Yeah, so first, yeah, thanks so much for the question. You know, we've been consistent over the last few quarters talking about how our variable sales and marketing expense is going to continue to be at that roughly 30% range. [inaudible]
Speaker Change: Around some of that sales staff, but, you know, net, net, net, we're only adding, I think, one or two people. So that, that fixed portion of it should remain flat.
Speaker Change: When you think about G&A expense, however, you know, I think what we said in the script is that we believe that it's going to maintain around the 2024 level.
Speaker Change: If you take a look at historical levels of that GNA expense, and you look at that quarterly cadence of how that looked,
Speaker Change: where we have the seasonal expenses associated with filing of our, you know, full-year financials as well as some of these reorganizations that we were doing that really affected at this passport. And then, of course, the last piece is Neurometrics.
Speaker Change: Well, thank you, Josh. We're going to turn the call back over to Dan now to read his closing statement and follow up with any other questions that may have been left open in the queue after this call.
Dan Goldberger: Thank you, Rob, and thank you all for joining us today. Lots going on. I'm very, very excited about returning to sequential growth in our core prescriptions channels, obviously closing the Neurometrics transaction has been a big deal for us.
Dan Goldberger: I want to thank the employees of Neurometrics and Dr. Shagazani.
Dan Goldberger: For all of their work over the years and for helping us right now with a difficult transition and moving everything to Rockaway. Of course, I also want to thank all of our patients and their providers and our employees.
Dan Goldberger: for the outstanding work that's going on. And I think we've got a very, very bright future ahead. I'm thrilled to be here. Thanks, everybody.