Q3 2025 NeuroOne Medical Technologies Corp Earnings Call

Speaker #3: Good day, ladies and gentlemen.

Operator: Good day, ladies and gentlemen. Welcome to the third quarter of fiscal year 2025 financial results conference call for NeuroOne Medical Technologies Corporation. Today's call will be conducted by the company's Chief Executive Officer, Dave Rosa, and Ronald McClurg, the company's Chief Financial Officer. Chris Volker, the company's Chief Operating Officer, will also be in attendance. Before I turn the call over to Mr. Rosa, I would like to remind you that this conference call will include forward-looking statements within the meaning of U.S. Federal Securities Laws with respect to future operations, financial results, events, trends, and performance, which are based on management's beliefs and assumptions as of today's call. Forward-looking statements, including statements regarding our fiscal 2025 guidance, may involve known and unknown risks, uncertainties, and other factors which may cause actual results to differ materially from those expressed or implied by such statements.

Speaker #1: Welcome to the third quarter of fiscal year two thousand twenty-five, financial results conference call for NEUROONE MEDICAL TECHNOLOGIES Corporation. Today's call will be conducted by the company's Chief Executive Officer, David Rosa, and Ron McClurg, the company's Chief Financial Officer.

Speaker #1: Chris Volker, the company's Chief Operating Officer, will also be in attendance. Before I turn the call over to Mr. Rosa, I'd like to remind you that this conference call will include forward-looking statements within the meaning of U.S.

Speaker #1: Federal Securities Laws with respect to future operations, financial results, events, trends, and performance, which are based on management's beliefs and assumptions as of today's call.

Speaker #1: Forward-looking statements including statements regarding our fiscal two thousand twenty-five guidance, may involve known and unknown risks, uncertainties, and other factors which may cause actual results to differ materially from those expressed or implied by such statements.

Speaker #1: See NEUROONE's financial results press release and SEC filings for information regarding specific risks and uncertainties, that could cause actual results to differ. Except as required by law, NEUROONE undertakes no obligation to update, such forward-looking statements.

Operator: See NeuroOne's financial results press release and SEC filings for information regarding specific risks and uncertainties that could cause actual results to differ. Except as required by law, NeuroOne undertakes no obligation to update such forward-looking statements. With that, I will turn the call over to Mr. Dave Rosa, CEO of NeuroOne. Please go ahead, sir.

Speaker #1: With that, I will turn the call over to Mr. David Rosa, CEO of NEUROONE. Please go ahead, sir.

Speaker #4: Thanks, operator. We made excellent progress in the third quarter, the fiscal year twenty twenty-five, on our financial objectives, as well as achieving successful outcomes in treating patients with our 1RF ablation system, advancing our product development programs, and strengthening our management team.

Dave Rosa: Thanks, Operator. We made excellent progress in the third quarter of fiscal year 2025 on our financial objectives, as well as achieving successful outcomes in treating patients with our OneRF Ablation System, advancing our product development programs, and strengthening our management team. In terms of our financial progress, product revenue increased 105% to $1.7 million, and product gross margins increased 53.9% compared to 34.1% in the third quarter of fiscal year 2024. These represent sizable improvements year over year, highlighting the strength of our current business as well as efforts to reduce costs. The company has done a great job of making meaningful progress with a limited burn rate.

Speaker #4: In terms of our financial progress, product revenue increased one hundred and five percent, to one point seven million dollars, and product gross margins increased to fifty-three point nine percent compared to thirty-four point one percent in the third quarter of fiscal year twenty twenty-four.

Speaker #4: These represent sizable improvements year over year, highlighting the strength of our current business as well as efforts to reduce costs. The company has done a great job of making meaningful progress with a limited burn rate.

Speaker #4: We also remain debt-free and reiterate our expectations of being funded through at least fiscal year twenty twenty-six, based on contractual minimum orders expected under our contract with Zimmer Biomed, with a potential to get to cash flow break-even if we achieve some of the key milestones currently in progress.

Dave Rosa: We also remain debt-free and reiterate our expectations of being funded through at least fiscal year 2026 based on contractual minimum orders expected under our contract with Zimmer Biomet, with the potential to get to cash flow break-even if we achieve some of the key milestones currently in progress. This is due in large part to the oversubscribed financing of $8.2 million in net proceeds that we raised in April. Regarding patient outcomes in the third quarter of fiscal year 2025, we celebrated our first patient to reach the one-year of seizure freedom milestone after being treated with our OneRF Ablation System. I am pleased to report that the patient has been able to return to many of the activities she participated in prior to being diagnosed with epilepsy. It has had a major impact on her well-being and improved her quality of life.

Speaker #4: This is due in large part to the oversubscribed financing, of eight point two million dollars in net proceeds that we raised in April. Regarding patient outcomes in the third quarter of fiscal year twenty twenty-five, we celebrated our first patient, to reach the one year of seizure freedom milestone after being treated with our 1RF ablation system.

Speaker #4: I am pleased to report that the patient has been able to return to many of the activities she participated in prior to being diagnosed with epilepsy.

Speaker #4: It has had a major impact on her well-being and improved her quality of life. Additional patients are showing significant improvements with reduced or eliminated seizures, and as a result, an improved quality of life.

Dave Rosa: Additional patients are showing significant improvements with reduced or eliminated seizures and, as a result, an improved quality of life. In an effort to highlight these positive outcomes, we are planning to initiate a post-market registry to collect outcomes data for patients treated with our OneRF Ablation System. With respect to expanding our product portfolio, I wanted to discuss a few market opportunities that we see as potential future revenue drivers. First, in pain management, we reported earlier that we submitted a 510(k) to the FDA for clearance to market an ablation technology to treat facial pain otherwise referred to as trigeminal neuralgia ablation. This is our first foray into pain management therapies with our thin film ablation technology, and we expect to pursue additional opportunities leveraging our technology platform in pain management and other therapeutic applications.

Speaker #4: In an effort to highlight these positive outcomes, we are planning to initiate a post-market registry to collect outcomes data for patients treated with our 1RF ablation system.

Speaker #4: With respect to expanding our product portfolio, I wanted to discuss a few market opportunities that we see as potential future revenue drivers. First, in pain management, we reported earlier that we submitted a five ten K to the FDA for clearance to market an ablation technology to treat facial pain otherwise referred to as trigeminal neuralgia.

Speaker #4: This is our first foray into pain management therapies with our thin-film ablation technology, and we expect to pursue additional opportunities leveraging our technology platform in pain management and other therapeutic applications.

Speaker #4: If cleared by FDA, we expect to either commercialize the product directly or work with a strategic partner. There is the potential to generate revenues from trigeminal nerve ablation late in calendar year twenty twenty-five, which is not currently factored into our operational plan.

Dave Rosa: If cleared by FDA, we expect to either commercialize the product directly or work with a strategic partner. There is the potential to generate revenues from trigeminal neuralgia ablation late in calendar year 2025, which is not currently factored into our operational plan. The next application that we are pursuing with our OneRF Ablation System is the treatment of lower back pain through a procedure called basivertebral nerve ablation, which would involve the percutaneous placement of our OneRF ablation electrode to disrupt the basivertebral nerve, which is located in the vertebral body. It is understood that this nerve is a primary contributor to lower back pain and that by using RF energy to ablate this nerve, it can provide long-term pain relief. The company recently received commitments from key physician thought leaders to serve as advisors for our OneRF BVNA product development program.

Speaker #4: The next application that we are pursuing with our 1RF ablation system is the treatment of lower back pain through a procedure called Basivertebral Nerve Ablation.

Speaker #4: Which would involve the percutaneous placement of our 1RF ablation electrode to disrupt the Basivertebral nerve which is located in the vertebral body. It is understood that this nerve is a primary contributor to lower back pain, and that by using RF energy to ablate this nerve, it can provide long-term pain relief.

Speaker #4: The company recently received commitments from key physician thought leaders to serve as advisors for our 1RF BVNA product development program. Keeping with an emphasis on pain management, we continue to move our spinal cord stimulation electrode technology forward, as we recently launched a chronic study in animals.

Dave Rosa: Keeping with an emphasis on pain management, we continue to move our spinal cord stimulation electrode technology forward as we recently launched a chronic study in animals. If these results are positive, we will be in a position to start preparing for first-in-man implants in early 2026, which could open up a new market opportunity for NeuroOne Medical Technologies Corporation to treat lower back pain. This market currently generates over $3 billion in annual revenue and would represent the largest current market opportunity for NeuroOne Medical Technologies Corporation. We continue to discuss with strategic corporate partners their interest in this and other potential applications for a thin film chronic implant electrode. Another market opportunity for the technology platform that we've previously discussed is our drug delivery system, which is still in development.

Speaker #4: If these results are positive, we will be in a position to start preparing for first-in-man implants in early 2026, which could open up a new market opportunity for NeuroOne to treat lower back pain.

Speaker #4: This market currently generates over three billion dollars in annual revenue, and would represent the largest current market opportunity for NEUROONE. We continue to discuss with strategic corporate partners their interest in this and other potential applications for our ur thin-film chronic implant electrode.

Speaker #4: Another market opportunity for the technology platform that we've previously discussed is our drug delivery system which is still in development. We're excited to announce that we received our first order from a leading biotech company to test our drug delivery system.

Dave Rosa: We're excited to announce that we received our first order from a leading biotech company to test our drug delivery system. As designed, the biotech company is interested in using our technology to both deliver a therapy and to record brain activity before and after the therapy has been administered. We believe this is a very exciting example of the unique combination of therapeutic and diagnostic capabilities provided by our technology platform. Additionally, we continue to make progress with regulatory matters, intellectual property, and strengthening our management team. We previously reported that we were initiating a process to secure ISO 13485 certification, which is required to commercialize and obtain regulatory clearances internationally. To date, we have not sold or commercialized any of our products in international markets. If successful, international markets could represent significant revenue in the years to come.

Speaker #4: As designed, the biotech company is interested in using our technology to both deliver a therapy and to record brain activity, before and after the therapy has been administered.

Speaker #4: We believe this is a very exciting example of the unique combination of therapeutic and diagnostic capabilities provided by our technology platform. Additionally, we continue to make progress with regulatory matters, intellectual property, and strengthening our management team.

Speaker #4: We previously reported that we were initiating a process to secure ISO 13485 certification which is required to commercialize and obtain regulatory clearances internationally. To date, we have not sold or commercialized any of our products in international markets, so if successful, international markets could represent significant revenue in the years to come.

Dave Rosa: Regarding NeuroOne Medical Technologies Corporation's intellectual property portfolio, we recently received a notice of allowance from the U.S. Patent and Trademark Office regarding the novel method of manufacturing that the company has developed. We also recently received notification that we have been granted our first international patent, which is for our spinal cord stimulation electrode. This is part of 17 patent applications that are either pending or approved. During the past quarter, we also welcomed Dr. Parag Patil, a world-renowned neurosurgeon, as our Chief Medical Advisor, and Emily Johns, a partner at Honnigman, as General Counsel and Corporate Secretary. Both of these new hires have made immediate contributions, not to mention that their additions have also brought cost savings.

Speaker #4: Regarding NeuroOne's intellectual property portfolio, we recently received a notice of allowance from the U.S. Patent and Trademark Office regarding the novel method of manufacturing that the company has developed.

Speaker #4: We also recently received notification that we have been granted our first international patent, which is for our spinal cord stimulation electrode. This is part of seventeen patent applications that are either pending or approved.

Speaker #4: During the past quarter, we also welcomed Dr. Parag Patil, a world-renowned neurosurgeon as our Chief Medical Advisor. And Emily Johns, a partner at Honigman, as General Counsel and Corporate Secretary.

Speaker #4: Both of these new hires have made immediate contributions not to mention that their additions have also brought cost savings. In conclusion, we are reiterating our fiscal year twenty twenty-five guidance, and expect product revenue to be in the range of eight to ten million dollars representing an increase of between one hundred thirty-two percent and one hundred ninety percent over fiscal year twenty twenty-four.

Dave Rosa: In conclusion, we are reiterating our fiscal year 2025 guidance and expect product revenue to be in the range of $8 to $10 million, representing an increase of between 132% and 190% over fiscal year 2024. We are also increasing our product gross margin expectations to be between 50% and 53% versus our previous guidance of 47% to 51%. This compares to 31% in fiscal year 2024. I would now like to turn the call over to Ronald McClurg to provide a review of our fiscal third quarter financial results.

Speaker #4: And we are also increasing our product gross margin expectations to be between fifty and fifty-three percent versus our previous guidance of forty-seven to fifty-one percent.

Speaker #4: This compares to 31% in fiscal year 2024. I would now like to turn the call over to Ron McClurg to provide a review of our fiscal third quarter financial results.

Speaker #5: Thanks, David. Product revenue increased one hundred and five percent to one point seven million in the third quarter of fiscal twenty twenty-five, compared to product revenue of point eight million in the third quarter of fiscal twenty-four.

Ronald McClurg: Thanks, Dave. Product revenue increased 105% to $1.7 million in the third quarter of fiscal 2025, compared to product revenue of $0.8 million in the third quarter of fiscal 2024. As we discussed on our last quarterly call, we expect product revenue to ramp through the end of the fiscal year as the product launch expands. For the first nine months of fiscal 2025, product revenue increased 100% to $6.4 million, compared to $3.2 million for the same period of fiscal 2024. The company also had licensing revenue of $3 million in the first nine months of fiscal 2025, which is not included in product revenue, compared to no licensing revenue in the first nine months of fiscal 2024. License revenue in fiscal 2025 was derived from the expanded exclusive distribution agreement with Zimmer Biomet.

Speaker #5: As we discussed on our last quarterly call, we expect product revenue to ramp through the end of the fiscal year as the product launch expands.

Speaker #5: For the first nine months of fiscal twenty twenty-five, product revenue increased one hundred percent to six point four million compared to three point two million for the same period of fiscal twenty-four.

Speaker #5: The company also had licensing revenue of three million in the first nine months of fiscal twenty twenty-five, which is not included in product revenue.

Speaker #5: Compared to no licensing revenue in the first nine months of fiscal twenty twenty-four. License revenue in fiscal twenty twenty-five was derived from the expanded exclusive distribution agreement with Zimmer Biomed.

Speaker #5: Product gross profit increased significantly to point nine million or fifty-three point nine percent of revenue in the third quarter of fiscal twenty twenty-five, compared to product gross profit of point three million or thirty-one four point one percent of revenue in the same quarter of the prior fiscal year.

Ronald McClurg: Product gross profit increased significantly to $0.9 million, or 53.9% of revenue in the third quarter of fiscal 2025, compared to product gross profit of $0.3 million, or 34.1% of revenue in the same quarter of the prior fiscal year. For the first nine months of fiscal 2025, product gross profit increased significantly to $3.6 million, or 56.8% of revenue, compared to product gross profit of $0.9 million, or 29.5% of revenue in the first nine months of fiscal 2024. Total operating expenses decreased 9% to $2.8 million in the third quarter of fiscal 2025, compared to $3.1 million in the same quarter of the prior year. R&D expense in the third quarter of fiscal 2025 was $1.2 million, the same as the third quarter of fiscal 2024.

Speaker #5: For the first nine months of fiscal twenty twenty-five, product gross profit increased significantly to three point six million or fifty-six point eight percent of revenue, compared to product gross profit of point nine million or twenty-nine point five percent of revenue in the first nine months of fiscal twenty twenty-four.

Speaker #5: Total operating expenses decreased nine percent to two point eight million in the third quarter of fiscal twenty twenty-five, compared to three point one million in the same quarter of the prior year.

Speaker #5: R&D expense in the third quarter of fiscal twenty-five was one point two million the same as the third quarter of fiscal twenty-four. SG&A expense in the third quarter of fiscal twenty twenty-five decreased fourteen percent to one point six million compared to one point nine million in the same quarter of the prior year.

Ronald McClurg: SG&A expense in the third quarter of fiscal 2025 decreased 14% to $1.6 million, compared to $1.9 million in the same quarter of the prior year. For the first nine months of fiscal 2025, total operating expenses decreased 5% to $9.5 million, compared to $10.0 million in the same period of fiscal 2024. R&D expense in the first nine months of fiscal 2025 decreased to $3.9 million, compared to $4 million in the same period of fiscal 2024. SG&A expense in the first nine months of fiscal 2025 decreased 8% to $5.6 million, compared to $6.1 million in the prior year period. Net loss in the third quarter of fiscal 2025 improved to $1.5 million, or a loss of $0.03 per share, compared to a net loss of $2.8 million, or a loss of $0.10 per share in the same quarter of the prior year.

Speaker #5: For the first nine months of fiscal twenty-five, total operating expenses decreased five percent to nine point five million compared to ten point zero million in the same period of fiscal twenty twenty-four.

Speaker #5: R&D expense in the first nine months of fiscal twenty twenty-five decreased to three point nine million compared to four million in the same period of fiscal twenty twenty-four.

Speaker #5: SG&A expense in the first nine months of fiscal twenty twenty-five decreased eight percent to five point six million compared to six point one million in the prior year period.

Speaker #5: Net loss in the third quarter of fiscal twenty twenty-five improved to one point five million or a loss of three cents per share compared to a net loss of two point eight million or a loss of ten cents per share in the same quarter of the prior year.

Speaker #5: Net loss for the first nine months of fiscal twenty twenty-five improved significantly to two million dollars or a loss of five cents per share compared to the net loss of nine million dollars or a loss of thirty-five cents per share in the same period of fiscal twenty twenty-four.

Ronald McClurg: Net loss for the first nine months of fiscal 2025 improved significantly to $2 million, or a loss of $0.05 per share, compared to the net loss of $9 million, or a loss of $0.35 per share in the same period of fiscal 2024. As of June 30, 2025, the company had cash and cash equivalents of $8 million, compared to $1.5 million as of September 30, 2024. The company had working capital of $8.7 million as of June 30, 2025, compared to working capital of $2.4 million as of September 30, 2024. We had no debt outstanding as of June 30, 2025. Lastly, as Dave Rosa noted earlier, we recently bolstered our balance sheet by completing an oversubscribed capital raise with institutional investors in April, totaling $8.2 million in net proceeds. We believe we are now funded through at least fiscal 2026, potentially longer if key milestones are hit.

Speaker #5: As of June thirtieth, twenty twenty-five, the company had cash and cash equivalents of eight million dollars. Compared to one point five million dollars as of September thirtieth, twenty twenty-four.

Speaker #5: The company had working capital of eight point seven million as of June thirtieth, twenty twenty-five, compared to working capital of two point four million as of September thirtieth, twenty twenty-four.

Speaker #5: We had no debt outstanding as of June thirtieth, twenty twenty-five. Lastly, as David noted earlier, we recently bolstered our balance sheet by completing an oversubscribed capital raise with institutional investors in April, totaling eight point two million in net proceeds.

Speaker #5: We believe we are now funded through at least fiscal 2026, potentially longer if key milestones are hit. Operator, at this time, I think we can open it up for questions.

Ronald McClurg: Operator, at this time, I think we can open it up for questions.

Speaker #1: Thank you. Ladies and gentlemen, the floor is now open for questions. If you would like to join the queue to ask a question at this time, you may press *1 on your telephone keypad.

Operator: Thank you. Ladies and gentlemen, the floor is now open for questions. If you would like to join the queue to ask a question at this time, you may press *1 on your telephone keypad. We do ask if listening on speakerphone this morning that you pick up your handset while asking your question to provide optimal sound quality. Once again, that will be *1 on your keypad at this time. If you wish to join the queue to ask a question, please hold a moment while we pull for questions. We have a question from Jeffrey Cohen from Lattenberg-Bauman. Jeffrey, your line is live. Please go ahead.

Speaker #1: We do ask if listening on speakerphone this morning that you pick up your handset while asking your question to provide optimal sound quality. Once again, that'll be star one on your keypad at this time if you wish to join queue to ask a question, please hold a moment while we pull for questions.

Speaker #1: And we have a question from Jeffrey Cohen from Lattenberg-Baumann. Jeffrey, your line is live. Please go ahead.

Speaker #6: Hey, good morning to Ron and Chris. A couple of questions from our end. I guess, firstly, could you talk about the EGE drug delivery platform?

Jeffrey Cohen: Hey, good morning, Dave, Ron, and Chris. A couple of questions from our end. Firstly, could you talk about the Evo sEEG electrode technology drug delivery platform and give us a sense of is testing being done on animals now, or will there be some human testing going on this year?

Speaker #6: And give us a sense of, is testing being done on animals now, or will there be some human testing going on this year?

Speaker #1: Yeah, so, thanks for joining

Dave Rosa: Yeah, so thanks for joining the call, Jeff. Good to hear from you again. Right now, the devices were ordered for initial testing just on the bench. Then from there, assuming that is successful, they will be used in animals. Ultimately, if the testing is successful in animals, then it would roll into a future clinical trial in humans.

Speaker #7: the the call, Jeff. good to hear from you again. right now, the devices were ordered, for, initial testing, just on the bench. And then from there, assuming that's successful, they will be used in animals and then ultimately, if, the testing is successful in animals, then it would roll into, a future, clinical trial in humans.

Speaker #6: Okay. And do you have a sense of if the, the compound itself is cleared or that's still in preclinical stage as well?

Jeffrey Cohen: Okay. Do you have a sense of if the compound itself is cleared, or that is still in preclinical stage as well?

Speaker #7: Oh, yeah. That's, that's still in development. so it's not cleared yet. there's not been any, you know, human, testing done with that. but, that will happen.

Dave Rosa: That's still in development. It's not cleared yet. There's not been any human testing done with that, but that will happen.

Speaker #6: Got it. Okay. Could you jump over to, trigeminal? Ablation and talk about the marketplace and talk about the, the phys the specific physician specialties that you could envision, a commercial presence in?

Jeffrey Cohen: Got it. Okay. Could you jump over to a trigeminal neuralgia ablation and talk about the marketplace and talk about the specific physician specialties that you could envision a commercial presence in?

Speaker #7: Yeah, so, from what we've been able to find in market research, as, as well as through discussions, with, some of our, neurosurgeon advisors, that participated in our advisory board for brain ablation, roughly, there's about a hundred and fifty thousand people in the US, that suffer from this condition.

Dave Rosa: From what we have been able to find in market research, as well as through discussions with some of our neurosurgeon advisors that participated in our advisory board for brain ablation, roughly there are about 150,000 people in the U.S. that suffer from this condition. In terms of actual numbers of procedures, it is less defined. But again, just in having discussions with the physicians who are doing these procedures, it seems like the opportunity is similar to what the numbers are for brain ablations, maybe a little less. I think we will get a better idea of this as we go out to these actual centers. The physicians performing this procedure and why it made so much sense for us to pursue it is that the same doctors who are doing brain ablations for these epilepsy patients are the same ones that are treating facial pain.

Speaker #7: in terms of actual numbers of procedures, it's less defined. but, again, just in having discussions, with the, physicians who are doing these procedures, it seems like, the opportunity, is similar, as to what, the numbers are for brain ablations.

Speaker #7: maybe a little less. I think we'll get a better idea of this, as we go out, to these actual centers. but the physicians performing this procedure and why it made so much sense for us to pursue it, is that the same doctors who are doing brain ablations for these epilepsy patients, are the same ones that are treating, facial pain.

Speaker #7: So, it makes a lot of sense, obviously, to initially focus on the sites that are using the ablation system for brain ablation to then expand the use for ablation of the trigeminal nerve to treat facial pain.

Dave Rosa: It makes a lot of sense, obviously, to initially focus on the sites that are using the ablation system for brain ablation to then expand the use for ablation of the trigeminal nerve to treat facial pain. That is kind of an overview of the market as well as who is doing the procedures.

Speaker #7: So that's kind of an overview, you know, of the market, as well as who's doing the procedures.

Speaker #6: Got it. And then, lastly for us, with regard to, SCS, could you talk about, is the design and the product lockdown, is one SKU, and implants would be, could you guesstimate what level of a spine?

Jeffrey Cohen: Got it. Lastly for us, with regard to SCS, could you talk about if the design and the product locked down as one SKU and implants would be, could you guesstimate what level of the spine?

Speaker #7: So, what we're talking about in terms of the patient population, this is lower back pain. I would say anywhere from L3, L4, you know, down to S1.

Dave Rosa: What we are talking about in terms of the patient population, this is lower back pain. I would say anywhere from L3, L4, down to S1 would more than likely be the targets for this type of therapy. In terms of the SKUs, we are not at that point yet, but there are going to be multiple components to the system. There will be a delivery system, the electrode itself. So it is likely that there would be, much like what you see in brain ablation as well as facial pain, multiple SKUs that represent the additional components.

Speaker #7: would more than likely be the targets for this type of therapy. in, in terms of the SKUs, we're not at that point yet, but there are gonna be multiple components to the system.

Speaker #7: There'll be a delivery system, the electrode itself, so, it's, it's likely that there would be much like what you see in brain ablation, as well as, facial pain, multiple, SKUs for, you know, that represents the additional components.

Speaker #6: Okay. And will the implants be, ablating at one level only, or will you be trying any in two levels?

Jeffrey Cohen: Would the implants be ablating at one level only, or will you be trying any in two levels?

Speaker #7: Okay, sorry. I thought you were talking about spinal cord stimulation. As opposed

Dave Rosa: Okay, sorry. I thought you were talking about spinal cord stimulation.

Speaker #6: Oh, yeah.

Jeffrey Cohen: No, I am.

Dave Rosa: As opposed to, okay. So we will not be ablating. We would be, the electrode would be placed in the spine and general area designated by the pain specialist based on where the patient is experiencing pain. So it would cover, because the electrode is much larger than the traditional electrodes used, it would cover a larger area in terms of the spine. That is one of the advantages of the device.

Speaker #7: to, oh, okay. So we won't be, ablating, we would be, the electrode would be placed in the spine in the general area, designated, by the pain specialist, based on where the patient, is experiencing pain.

Speaker #7: So it would cover, because the electrode is much larger, than the traditional electrodes used, it would cover, a larger, area, in terms of the spine.

Speaker #7: That's one of the advantages of the, device.

Speaker #6: Okay, got it. And as far as Q4 goes, thanks, Ron, for the 8 to 10 confirmation. Any outlook for 2026 that you want to talk about at this point in time?

Jeffrey Cohen: Okay, got it. As far as Q4 goes, thanks, Ronald McClurg, for the 8 to 10 confirmation. Is there any outlook for 2026 that you want to talk about at this point in time?

Speaker #7: We are not giving a forecast yet for 2026. We are confident in the range, but we just have not made that public. Again, that's due to the minimum purchase requirements that are in the Zimmer amended contract.

Dave Rosa: We are not giving a forecast yet for 2026. We are confident in the range, but we just have not made that public. Again, that is due to the minimum purchase requirements that are in the Zimmer Biomet amended contract.

Speaker #6: Okay. Got it. Nice quarter. Thanks for taking our questions.

Jeffrey Cohen: Okay. Got it. Nice quarter. Thanks for taking our questions.

Speaker #7: Thank you.

Dave Rosa: Thank you, sir.

Speaker #6: you.

Speaker #1: Thank you. And there are no further questions in queue at this time. I would now like to turn the floor back to Dave Rosa, for any closing remarks.

Operator: Thank you. There are no further questions in queue at this time. I would now like to turn the floor back to Dave Rosa for any closing remarks.

Speaker #8: Thank you, operator. I would again like to thank everyone for attending the call and look forward to connecting with the investor community throughout the upcoming quarter.

Dave Rosa: Thank you, Operator. I would again like to thank everyone for attending the call and look forward to connecting with the investor community throughout the upcoming quarter.

Operator: Thank you. This does conclude today's conference. We thank you for your participation. You may disconnect your lines at this time and have a great day.