electroCore, Inc.

Greetings, and welcome to the Electricorps first quarter 2026 earnings conference call. At this time, all participants have been placed in listen-only mode. Please make sure to mute yourself. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. Earlier today, Electricorps published results for the first quarter ended March 31, 2026, and the press release is available on the company's website. Before we begin, I would like to remind everyone that members on the call will make forward-looking statements within the meaning of the federal securities laws made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements that are not historical facts should be deemed to be forward-looking, including without limitation to any guidance the company's outlook on second quarter and full-year performance and its path to profitability. These statements involve material risks and uncertainties that could cause actual results to differ materially from those anticipated. For a list of risk factors, please see the company's filings with the Securities and Exchange Commission. ElectroCorp disclaims any obligation to update these statements. except as required by law. This call contains time-sensitive information, accurate only as of today, May 6, 2026. Joining us on today's call from ElectroCorp are Dr. Thomas Errico, one of the company's founders, investor, and independent chairman of the Board of Directors, Joshua Lev, interim president and chief financial officer, and Mike Fox, recently appointed Chief Operating Officer. It is now my pleasure to turn the call over to Dr. Thomas Errico, ElectraCorp's founder and independent chairman, for opening remarks. Dr. Errico?

Thank you, Amanda. Good afternoon, everyone, and thank you for joining ElectraCorp's first quarter 2026 earnings call. This is the first earnings call since we announced our leadership transition. And I want to take a moment to share how encouraged I am by the progress we have made executing that transition. And by the momentum we continue to see across the organization. Since stepping into the role of interim president, Josh has provided steady, disciplined leadership while maintaining his focus on financial rigor. The alignment between our operational priorities and our financial strategy has been evident and the organization has responded with focus and urgency. The strategy has not changed. The execution has not slowed. If anything, the focus across the organization has sharpened. At the same time, Michael Fox joined us as Chief Operating Officer on April 13th, bringing more than 35 years of commercial leadership experience across complex healthcare markets. including extensive work within the federal systems and the US Department of Veteran Affairs. In just three weeks, his depth of experience has already provided valuable insights to strengthen our execution, particularly as we continue to expand our presence within complex government channels. He will introduce himself shortly. Importantly, this transition has not slowed us down. It has reinforced our foundations. We remain firmly committed to our strategy, driving growth within our covered entities, advancing our clinical and scientific leadership in non-invasive vagus nerve stimulation, and expanding our reach into the consumer wellness market. And we are doing so with discipline, managing cost base, expanding the margin, and protecting our path to profitability. In our clinical work, we continue to invest in the evidence base that underpins our portfolio. That evidence remains a key differentiator as we engage with providers, payers, and partners globally as well as domestically. and it positions us to expand into new indications over time. In the VA, where we have built a credible commercial presence over many years, we believe we have a meaningful long-term opportunity. Our commercial leadership is leveraging Mike's experience to identify new ways to be more targeted and more effective, particularly within a system where we still have substantial room to penetrate. On the consumer side, we are building a scalable, direct-to-consumer channel with increasing brand visibility, improving unit economics, and a growing network of influencer and affiliate partners that resonate with audiences seeking non-pharmacologic, science-backed wellness solutions. The early traction we are seeking reinforces our belief in the broader applicability of our technology and its relevance to everyday wellness. What gives me the greatest confidence is not just the program itself, but how it is being achieved with discipline, alignment, and a clear sense of purpose across the organization. We are building a strong foundation and we are doing so in a way that positions the company for durable long-term growth. While our search for a permanent CEO continues, I am confident that the team we have in place today, Josh, Mike, and the broader leadership group, is the right team to execute against our priorities and carry our strategy forward. I look forward to updating you on our continued progress in the quarters ahead. With that, I would like to introduce our new Chief Operating Officer, Mike Fox. Mike?

Thank you, Tom. Good afternoon, everyone. I joined Electric Core for one reason. I saw science-based platform technology with proven published clinical outcomes data that support a credible commercial foundation and significant room for growth, particularly within the federal channels where I spent most of my career. Three weeks in, That conviction has only strengthened due to my greater exposure to the existing and future data sets being gathered. I've also had the opportunity to meet a vast number of talented colleagues within the company who are dedicated to the mission and the patients we serve. So rather than walk through my background, let me tell you what I've been focused on and where the opportunity exists. A major priority is the VA and Department of Defense markets. We have just scratched the surface of penetrating in the addressable VA headache market. Though we have patients being treated with our products in VA medical centers across the country, we're not attaining the utilization level that meets the needs of our veterans and the dedicated providers caring for these military heroes. The majority of new patients identified and prescribed our products in Q1 are not spread across the country as expected or needed. That tells me two things. One, we have built real distribution. And two, we are nowhere near saturation. My focus is moving from facility breadth to facility depth. more prescribers per site, more patients per prescriber, and more consistent customer experience across the system. My second priority is the broader federal channel. The VA is our largest entry point, but it is not the only one. The Department of Defense, across all service branches, represents an underdeveloped opportunity for both our prescription products and for tax them. Given the heightened tempo of U.S. military operations abroad, the demand environment for non-invasive, drug-free, performance-supporting solutions has only intensified. I spent the last three and a half decades building relationships in these channels, and I intend to put them to work for this company. My third priority is operating discipline. Josh and the team have built a high-margin business, 87% gross margin in Q1, and you're starting to see operating leverage show up in the numbers. My job is to make sure that as we scale, incremental revenue translates to incremental bottom line, not incremental costs. We intend to grow this business efficiently while we establish Electricor as a partner of choice to ensure market stability in the years ahead. I'm three weeks in, but trust that my experience in developing company growth and success is from decades of learnings and proven execution strategies. I'm truly excited about the opportunity presented to me here at Electricor. There will be much more for me to share over the coming quarters, but I'm convinced that what is in front of us is real, and I'm truly grateful to be a part of it. With that, I will turn the call back over to Josh to walk through the quarter. Josh.

Thank you, Mike. Before I get into the details, let me tell you what this quarter represents for ElectroCorp. We just delivered our highest revenue quarter ever, $9.6 million, up 43% year over year. Gross margin expanded to 87%. Gap net loss was $5.3 million and adjusted EBITDA loss improved by 24% to $2.3 million. That combination, accelerating top line, expanding margin, and improving adjusted EBITDA loss in the same quarter is demonstrating operating leverage and it is the clearest signal yet that we are executing on our strategy. We are reaffirming our full year 2026 revenue guidance of approximately 30% growth. As I'll discuss in a moment, the catalyst in front of us for 2026 give us conviction in that outlook. Now to the details. The VA hospital system remains our largest customer, and growth there continues to accelerate. Prescription device revenue increased 48% year over year to $7.9 million. Within that, prescription GammaCore grew 26%, and QWEL sales surpassed their first million-dollar quarter. Since we acquired the QWEL assets from NeuroMetrics in May 2025, QWEL Fibromyalgia has generated $2.5 million in accumulative revenue, and we are still in the early stages of placing that product across the VA system. As of March 31st, approximately 15,000 VA patients have received the GammaCore device, which we estimate represents roughly 2.5% penetration of the addressable VA headache market. The underlying patient population continues to expand. A 2024 study published in JAMA Network Open of nearly 500,000 US veterans found that 8.2% of male and 30.1% of female veterans report a history of migraine, roughly three times the rate observed in the civilian population. and that approximately half of veterans with migraine also meet criteria for PTSD. The US Department of Defense has reported more than 485,000 service member traumatic brain injury diagnoses since 2000. Combining with the Veterans Health Administration's emphasis on non-opioid first-line treatment for chronic pain, we believe the runway for prescription Damacor adoption inside the VA is long and we are still early. Turning to our consumer wellness channel, revenue reached $1.6 million in the quarter, up 44% year over year, with Truvega contributing $1.5 million, up 38% from Q1 of last year. This quarter, we deliberately tempered top-line growth in favor of efficiency, and the results are showing up in the unit economics. Our return on advertising spend, or ROAS, was approximately 2.37 in the period, a 14% improvement over prior quarter. In plain English, every dollar we spent on True Vega-related media generated nearly $2.37 of revenue. That improvement was driven by a concentrated shift toward affiliate and influencer partnerships that reach consumers already interested in wellness and in vagus nerve stimulation specifically. Return rates remain in the 12 to 15% range consistent with prior periods. We believe the macro environment for our consumer wellness offering is meaningful. The Centers for Disease Control reports that approximately 24.3% of U.S. adults experienced chronic pain in 2023, up from 20.4% in 2019. Independent industry research projects the global noninvasive vagus nerve stimulation segment will expand at a low double-digit CAGR through 2030, supported by aging demographics, the regulatory and clinical pivot towards non-opioid pain management, and rising consumer awareness of the vagus nerve. We believe TruVeda is well positioned to capture a meaningful share of that growth. On to Taxton, our human performance product. While quarterly tax and revenue has historically been variable, the underlying demand environment for cognitive performance and fatigue mitigation in the active duty military and federal channels is robust and getting more robust. Given the heightened tempo of U.S. military operations abroad, particularly around remotely piloted aircrafts, drone defense, and other extended-duration mission profiles, the need for non-invasive, drug-free solutions to support warfighter alertness, focus, and resilience has only grown. TACSTM is the subject of ongoing research and evaluation across U.S. Air Force Special Operations Command, U.S. Army Special Operations Command, and the Air Force Research Laboratory. and was previously selected by AFRL for inclusion in the real-time assessing and augmenting cognitive performance in extreme environments program, a program designed in part to support multi-day transoceanic operations and long-duration remotely piloted aircraft missions. With Mike now leading our commercial operation, we see a meaningful opportunity in 2026 and beyond to deepen our engagement and to pull TACSTIM through as a more consistent revenue contributor. Now to the financials. Net sales of $9.6 million represented 43% growth over a prior year, driven by Damocor and Quell within the VA, and continued growth in Truvega. Gross profit was $8.4 million, with gross margin expanding to 87%. a 200 basis point improvement year over year. Research and development expense was $740,000, up modestly from the prior year, primarily reflecting work on the Acacia PTSD study. Selling, general, and administrative expense was $12.9 million. That number includes approximately $1.9 million of non-recurring leadership transition costs and $300,000 of legal expense related to the ongoing IP litigation. Excluding those items, the year-over-year increase was driven by approximately $1.6 million of variable expense, supporting our $2.9 million revenue increase, a clean illustration of how the cost base scales with the top line. Other expense of $276,000 includes interest associated with the convertible term debt financing we put in place with Avenue Venture Opportunities Funds. Gap net loss in the first quarter was $5.3 million compared to $3.9 million in the prior year period. This increase was driven primarily by the $1.9 million in non-recurring leadership transition costs. Net loss per share was 59 cents compared to 47 cents per share in the same period last year. Excluding the leadership transition expenses, net loss per share was 37 cents. And now, I want to draw your attention to the 24% improvement in our adjusted EBITDA loss, which I believe is an important indicator of the operating leverage we are building. Adjusted EBITDA loss for Q1 was $2.3 million compared to $3.1 million a year ago. That improvement happened in a quarter where we absorbed $1.9 million of non-recurring leadership transition expenses. Strip those out and the operating leverage in this business is even more evident. Revenue grew 43%, adjusted EBITDA loss narrowed 24%. As we scale further, That gap is what gets us to profitability. A reconciliation of gap net loss to non-gap adjusted EBITDA net loss is provided in the financial tables in today's press release. Turning to the balance sheet. Cash, cash equivalents, and marketable securities were approximately $8.8 million at March 31st, 2026, compared to $11.6 million at December 31st, 2025. One important note on cash. Q1 is historically our highest cash burn quarter of the year. This year, certain working capital items, primarily the timing of inventory and capital improvements to our Rockaway facility, may extend a portion of that burn into the second quarter. We are managing the balance sheet with discipline and remain focused on the operating efficiencies that support our path to profitability, while also evaluating available capital resources including our existing shelf registration statement and at-the-market facility. Before we open the call for questions, I want to spend a minute on the catalyst ahead of us in 2026, because the runway from here is significant. First, R&D and MV&S as a platform technology. We continue to work towards platform of products that can be sold through our established sales channels. This comes in the form of indications, products, and features. The body of evidence supporting the therapeutic potential of NBNS continues to expand. A new publication in Frontiers in Neuroscience entitled Adjunctive Noninvasive Vagus Nerve Stimulation for Chronic Mild Traumatic Brain Injury with Comorbid Post-Traumatic Stress Disorder, a Post-Hoc Analysis, highlighted findings on the potential benefits of adjunctive noninvasive vagus nerve stimulation in patients with mild traumatic brain injury and PTSD. Additionally, approximately 20 participants have enrolled in the clinical study conducted by Acacia Clinics in collaboration with the Vegas Nurse Society designed to evaluate the safety and effectiveness of ElectriCore's GammaCore NBNS device as an adjunctive treatment for symptoms associated with PTSD. PTFE is a breakthrough device designation for us, and as the data matures, we expect it to become an increasingly important part of the platform story. Work on our next generation TrueVega and Quell mobile platform is underway. We are developing a mobile application designed to complement our consumer products, deliver more personalized features and user experiences, and, if done right, open the doors to recurring revenue deeper engagement, and richer real-world data. Second, we remain focused on opening additional commercial channels for our products. Beyond continued VA penetration, Mike's mandate includes expanding our commercial and federal channel presence. This includes areas such as Kaiser, federal workers' compensation programs, TRICARE, and broader adoption with an active-duty military and the Department of Defense. With TACSTM already engaged across Air Force Special Operations Command, Army Special Operations Command, and the Air Force Research Laboratory, we see meaningful opportunity for additional federal contract activity. QWEL continues gaining adoption through our current sales channel and primarily within the VA. Sales of the QWEL product line surpassed $1 million in quarterly revenue for the first time in Q1 2026. bringing cumulative QWEL revenue to approximately $2.7 million since the acquisition from Neurometrics in May 2025, including $2.5 million of QWEL fibromyalgia sales in the VA. We have a small cohort of legacy QWEL over-the-counter users and expect to relaunch the over-the-counter QWEL relief for lower extremity pain later this year. Earlier this year, in January 2026, We launched True Vega in the United Kingdom. And as back as this scales, we expect to evaluate additional markets. And third, perhaps the most important catalyst of all, our path to profitability. The math is straightforward. Mid-80s gross margin accelerating top line, increasingly disciplined cost base. We are not yet ready to provide a specific quarter for breakeven, But that trajectory is clear, and Q1 is the strongest evidence yet that we are on it. Taken together, these catalysts underpin our reaffirmed full year 2026 revenue guidance of approximately 30% growth, which translates to roughly $9 to $10 million of incremental revenue versus our $32 million in 2025. We expect the majority of that growth to come from continued VA delivered prescription device revenue of 48% year-over-year. TrueVega, growing in the high 30% range and improving in efficiency, is our next meaningful contributor. Quell Relief and our international launch represents newer contributions that we hope to scale through the back half of the year. TaxDIMM, while historically variable, represents potential upside as Mike deepens our federal engagement. and our next generation mobile platform is a 2027 contributor that opens the doors to recurring revenue over time. In short, three catalysts, a clear 30% growth bridge from 2026, and a longer runway into 2027 and beyond. With that, I would like to open the call for questions. Operator?

Thank you, Josh. We will now open the call for Q&A session. For those joining via Zoom, there are two ways to participate. First, you may raise the hand icon located at the bottom of your screen. Selecting this will alert the operator that you would like to ask a live question, and you will be placed in the queue. Please note that you will remain muted until your question is called. Second, you may submit a question using the Q&A widget, which allows you to type your question directly. We will monitor and take questions submitted there as well. If time does not permit us to address all questions during today's call, a member of the investor relations team will follow up directly. With that, we will pause briefly to allow the queue to form.

Okay. First question comes from Jeff Cohen at Lattenburg.

Hi. Can you hear me okay? Oh, is this Destiny? Yes. Hi. This is Destiny on for Jeff. Thank you for taking our questions. I just wanted to touch on the VA channel a little bit, and this is going to be a multi-part question, but I'm wondering, as you move away from breadth and more towards depth in this channel, Could that and does that change the structure of your sales force in terms of W-2 versus 1099? And then how are you balancing expanding into new sites versus additional patient treatment or additional patients treated, I should say?

Hey, Destiny, thanks so much for the question. Really appreciate it and appreciate you being on the call today. You know, I think the best person to answer that question will be Mike. Mike, why don't you jump in and let everyone know what your strategy is.

Yeah, thanks, Josh. I think the question is a really good one because I don't believe it's an either-or question. In my experience, we definitely want to expand breadth. We do have VA utilization across the country, but the depth in various specialties and within various patient segment groups is not where it needs to be. I'm a fan of the 1099 model. I'm a fan of the W2 model. In my history, as long as we have strong performers that are aligned to the strong mission to help our veterans, we can build a really strong opportunity around that. So I don't see this being a big change as much as just an internal alignment focus and opportunity for us to ensure that we're setting appropriate expectations and really holding people accountable to exceeding those expectations for both our GammaCorp line and the Quo line. Tessie, does that answer your question?

It does. I think I would also just be curious, what is your target for number of clinics for the end of 2026? Perhaps a range from that 200 number?

That depends on when you say clinics. I really like the VA medical centers. It depends on what number you want to utilize. I've always been in the belief that we're not helping at least 75% of the facilities across the country help the vets. We're not doing our job. I don't know about an exact number, but we need to get really active and have consistent utilization of our products and treating veterans, and at least 75% of those counts on a monthly basis.

Got it. And then as you go into these other DOD channels, how does that process compare to the VA centers? Is it similar in terms of timing?

It probably will be a different story altogether because, as you know, they're both under FSS, but the Department of Defense accounts, like the military health centers, that also include the TRICARE components, So there's different segments, but from a timeline perspective, the VA usually takes a long time to get things established due to FSS and working with our customers like Level Government Services for some things. On the Department of Defense side, I would expect by sometime Q3, Q4, with our plan in place, we'll start seeing additional revenue.

Okay, that's really helpful. Thank you. And then I guess transitioning over to wellness and TrueVega, You have really strong ROAS this quarter, which I think is fantastic. I'm just wondering if there were any changes to the marketing channels that played into that stronger ROAS.

Yeah, I'd say that's a great question. It's not so much a change in the marketing channels. It's more a function of where we're deploying and investing our resources. We need a more concerted effort to work on affiliate programs and influencers. You may have seen that Miranda Kerr posted about us earlier. That's a co-marketing opportunity that we have. Those are opportunities where what we can do is utilize and leverage the marketing budgets of other people so that they're actually the ones that are putting out there the marketing messaging. And really what we're doing is using that halo effect to help lift our efficiencies. So, it's not so much a change per se. I wouldn't say that we cut out any of the other channels or media that we've done before. We're just reallocating the resources and looking at it slightly differently.

Okay. And have you noticed any differences in repeat purchase behavior or anything of that nature compared to last year?

Not yet, but we also haven't given any, you know, formal guidance on that either. I would say not yet for the time being. Everything seems to be, you know, business as usual.

Got it. All right. That does it for me. Thank you for taking the questions and great quarter.

Thanks, Jess. Thank you.

Okay. Our next question comes from Fazia Ahmed from Brookline.

Fazia, we're trying to unmute you.

Hi, can you hear me? Yes. Perfect. Give me one second. First, Mike, thank you for joining the call and coming on board. We look forward to engaging with you. My question is on the frontier study on PTSD patients, which was very compelling. I was wondering if you can just remind us how this study is aligned with the ongoing ACACIA trial? Is it set up the same? Whether the outcomes are actually designed to capture the same kind of outcomes that were published in Frontier or something different?

It's something slightly different. Both of them are there to capture patients with PTSD and the effects of utilizing noninvasive vaginal nerve stimulation on patients with PTSD. The actual protocols themselves are slightly different. You can look those up on the IRVs if you'd like. But in essence, the idea here is how do you aggregate different data points that have PTSD as being tested to a patient population, but the populations themselves may be slightly different.

Okay. And then I have a follow-up question. You know, there's a breakthrough designation attached with PDSD. Are there any ongoing discussions with the FDA at this point?

You know, in previous quarters, we've given information and spoken about how we've gone back and forth with the FDA in terms of the best breakthrough approach, expanding the breakthrough designation to what would be a formal PTSD label. What we're doing with a lot of the work now, primarily with the Acacia study and what you just referenced a moment ago, is really aggregating more data points and information that we can bring to the FDA to have a full rollout of what would be a PTSD indication and a full label. And we're doing that sort of in conjunction with them in that they've identified or articulated to us what they're looking for. And based off of that information, we're looking to take that and aggregate the data set to provide to them to ultimately you know, apply for the full form EPSU.

Thank you.

Great. Thanks, Fabio.

Of course.

Okay. Our next question comes from R.K. Ramakant at H.C. Wayne Ranks.

Good afternoon, Joshua. Welcome aboard, Michael Fox. Hopefully, you guys are able to hear me.

Yeah, you're great, Arket.

I have two or three questions. So, Josh, just starting off, you know, thanks for reiterating the 30%, you know, growth for 2026. But, you know, during the first quarter, there was a gain of 43%. So what is it that's kind of keeping you, you know, being more careful than needed? Do you see something that makes you – I'm not going to use the word concern, but makes you think that I need to wait for at least one more quarter to change that guidance?

That's a great question, R.K., and very astute. The answer is no. You know, more than anything, we have internal projections, as you know, and the guidance that we provide into the street is really based off of what we believe, you know, organic growth could look like based off of, I would say, an outdated model. And what I mean by outdated is, you know, Mike, with all of his experience of coming to the organization, has utilized strategy and tactics, which has helped grow his former businesses 3 to 4x in terms of top-line revenue. Mike's only been here since April 13th. So, you know, it's not really necessarily, quote, fair, unquote, to expect any more sort of direction or tactics as it relates to how it's going to be able to expand or accelerate that growth, what the timing of that growth is going to look like, and the resources required. which is the reason why we keep on going back to we are going to provide more detailed guidance when it becomes available and more appropriate. It just hasn't been enough time for Mike to get his feet wet fully to be able to map out and say, okay, I think that we can grow by X, but it's going to take this amount of time.

Okay, thanks for that. And Michael Fox, as I said, welcome aboard. I have a quick question for you. As you were doing your due diligence and trying to get on board, You know, GammaCorp has been marketed to the VA facilities for quite a while now. And we have about 200 centers actually not only acquiring but also stocking the product. From your experience and from what you have done in the past, what is the easy pickings in the VA market to do? to move that, you know, to a larger number of centers? And also, outside of the VA, you know, can you name one or two additional federal centers where you think this can be an easy sell?

Okay, that's a really good question, and I would say from what I've seen in my experience in the VA, the best way to adjust within the VA is to work with them. The VA has got a lot of standardizations. They've got a lot of requests for algorithms and treatment protocols, medical necessity. I find a lot of companies do a lot of great things one account at a time, but they're not working with the leadership at the business level or national level to really place where this product fits and get support from top down. I believe this company has done a phenomenal job of generating support from the bottom up. What I can do is continue to work with that information, that data, the patient-provided outcomes, and the information gathered by our providers in the VA to generate more opportunity for us to standardize treatment and put a really strong position for GammaCorp within the federal space. On the second part of your question with outside of the VA, I know there's a large federal workers' comp. opportunity with a number of headaches and migraines within that space. Within the Department of Defense, whenever you say Department of Defense, you've got to think of places like Walter Reed, SAMHSA, Portsmouth Naval, Balboa. There's so many medical facilities that treat patients post-deployment that come back with various things that we can definitely assist them with. So it's early in my evaluation of where we will be able to start, but I promise for the Department of Defense, It will be with key opinion leaders within the headache space on those active military bases with a focus on the larger centers first, probably closer to the East Coast war base. Does that answer your question, RK?

Yes, yes. So if I can, one more question for you, Mike. In terms of Kaiser Permanente, you know, this is one of those entities that, where you really need to generate internal care wells that can drive the growth of the product. I'm not sure, in terms of your experience, do you see that as a real way to do it? Or is there any other levers that need to be pulled? Because I believe once you can get that going, you know, it can be a good, good draw of the product?

I would say that's a phenomenal question, and I think a lot of companies ask the same thing about Kaiser because everyone knows the importance of a place like that for business. I can't say of all the details of our propositions to date with Kaiser have been on numerous calls. I'm very excited about what we have going on and the key opinion leader support within Kaiser. It is a phenomenally well-organized and standardized group. So within the foundation, I know there's a lot of support. So the work is definitely being done in the California market, and we're going to address some other outside-of-market opportunities. But I don't want to get too deep into the Kaiser description of what's going to happen, but we have a very favorable position now that we need to really just understand what's holding us back so we can generate that necessity from the customers. But you are right. We need internal providers requesting it. And I can tell you from my early meetings, we have national headache and migraine experts already doing that. So we're in a good spot. We've just got to, I would say, tie a bow a little bit and figure out what's missing, but we're getting a lot of momentum there. Perfect, perfect.

On the quail fibromyalgia, you know, you have $2.5 million cumulative in the VA market. How big is the market, you know, how big is the opportunity within the VA? for Qwell, and is there any opportunity outside of the VA? You know, because it looks like it was not sold much on the over-the-counter sort of product. Because, you know, you have quite a bit of experience now with TrueVega, and I'm just trying to understand, you know, how can that be translated into Qwell OTC, if I can call it that?

Well, that's a great question, okay, because within the VA, obviously we're treating some of the multidisciplinary types of patients with multifactorial disorders. And fibromyalgia is a percentage is a large population in the VA. I think there's some recent statistics just on even active military. It's very low before they go on deployment, but upon return from deployment, it's about 11% just on active duty. So the veterans as a whole are always exposed to greater and bigger issues. So it is a market by itself, which is very, very scalable as a product like 12. Outside of the VA, I think we all have family members and friends that have been dealing with fibromyalgia. It is a big opportunity outside there. But I would say we talked about Kaiser a little bit earlier. I think those are the markets that would be the first ones to address as we continue to explore maybe some opportunities to talk with TriWest and Optum for some of the active military. That's going to be the plan for at least for the immediate future, but We still have to verify what's the best spot.

And look, RK, it's also definitely worth noting as we look at the number of facilities that are out there prescribing our products, the fibromyalgia product, well, is being prescribed in roughly a third of the number of facilities that are being prescribed, that Damocor is being prescribed in. So if you think about that in the context of overall runway, You know, we acquired the company a year ago. We've been able to grow that to about $2.5 million within the VA system. But of that VA system, it's kind of concentrated in one area of the region. You know, we just need to spend more time of being out there and selling. So, you know, there's a lot of opportunity, I think.

So, I don't mean to hog the call, but one last question on TrueVega. You know, what learnings can you take from the U.S. to the U.K. part of it?

You know, that's a great question. Right now, we've only launched in the U.K. with our TrueVega 350. We've had a lot of inbound interest that are coming from the U.K. and people that are expressing the need or the desire to get more access to bagel nerve, non-invasive bagel nerve stimulation for the wellness community. So, you know, it's early days there. We really just launched it in January. It's a soft launch, and what I mean by that is we're not actively putting any media dollars behind it right now. Really what we're trying to get a better understanding of is what is that uptake for that two-data 350 unit, and does it make sense, and what is the business opportunity more broadly, not in just the U.K., but also in other areas outside of the U.S., but also outside of the U.K., to go ahead and launch a next-generation product like the two-data bus.

Okay, perfect. Thank you, gentlemen. Thanks for taking all my questions.

Thanks, RK.

Okay, Josh, our next questioner comes from Jeremy Perlman from Maxim. His first question is actually for Mike. He says, where does Mike see the easiest wins, lowest hanging fruit, and what are his longer-term plans to drive increased utilization?

Thanks for the question, Jeremy. In my vast four weeks of experience, the low-hanging fruit opportunity is, as we discussed, the federal space. I think the VA and the unmet needs with our veterans is a key focus as far as we know we have a really strong opportunity there and other federal channels, like we discussed, the Department of Defense. I think long-term plans, it's a good starting spot, but we all know that it's a good place to help our veterans, but we have to go beyond. That's where I think the longer-term plan will be continue to work on the commercial segments and figure that system out as a way for us to expand beyond the FSS and DSA opportunity. So that's still in development, still being identified, but that's the long-term plan so we can develop the revenue for long-term.

Okay. Jeremy's next question is, what does the QWEL release commercialization rollout look like? Target markets and users.

Yes, a great question. So first and foremost, Jeremy, there is a small cohort of users of the Quell over-the-counter product that we inherited when we acquired the Neurometrics business. You may recall that when Neurometrics was at its peak, it was doing somewhere to the tune of $12 to $15 million of Quell over-the-counter related business. And a lot of that went away after the company decided to do a strategic pivot, had the FTC issue, and moved to a medical device, well, fibromyalgia product. So from our point of view, what we're really focused on making sure, number one, that we can still go ahead and service those legacy consumers that have been using the product or that may want to have continued using the product but it's no longer available. That's number one. And then number two is we need to do it in a way that makes sure that we have addressed all of the concerns that neural metrics had addressed regarding the FTC. So in terms of overall rollout and commercial strategy, the answer is going to be it's going to be slow and it's going to be well-defined, but it's going to be deliberate in that we're purposely going to make sure that we've addressed the concerns that neural metrics had earlier in their iteration as an over-the-counter product so that we can go ahead and do it in a way that's balanced between offering a 12-fibromyalgia FDA-cleared product or FDA-approved product, and then also a consumer product as well.

Okay, and our last question from Jeremy. What are your leading indicators, pipeline, reorder rates, device utilization, that give confidence in continued acceleration and guidance?

So, again, Jeremy, great question. You know, I tried to really focus on it at the end of my remarks, but there's really, if you look at this in terms of three main categories of catalysts, the first is R&D related, so that could be additional indications. like PTSD, putting out additional information about how the studies are going. If you look and you follow our IR page, you'll note that we put out recent press releases, noting the Acacia study, noting some other publications where data is coming out to help support what could be the makings of a PTSD label. That would be an R&D effort. our products or features you know we had mentioned as it relates to true vega and 12 we are investing in our second generation or our next generation mobile application those features will allow us to hopefully get to a point where it's done correctly we'll be in a situation that we can have a recurring revenue model so that would be the first catalyst the second catalyst would be commercial by being able to go ahead and announce items such as launching true vega outside the United States, as we've recently done in January, the opportunity or the probability of ultimately launching the 12 relief or the 12 over-the-counter products as its own standalone consumer product. Hopefully, Mike coming to the table and being able to announce either further traction within places like Kaiser, new orders within the federal marketplace like Federal Workers' Comp, perhaps Tricare. So opening up different commercial avenues, And then lastly, which is the third catalyst, will ultimately be the operating results. You know, we believe that we can be in a situation where these other catalysts will help drive increased total addressable market and adoption of non-invasive vagal nerve stimulation products or devices. And we believe that acceleration will yield higher revenue growth. and be able to do it in a way that we're managing our costs and expenses. So ultimately speaking, can we accelerate our revenue while also reducing our overall costs to do that, whether that's a percentage of sales and marketing as a percentage of revenue, as an indicator, so on and so forth. So those are really the three main catalysts that we're here focused on and we're going to be very mindful about as we go into the remainder of 2026 and beyond that we can give very specific, milestone updates as to these different areas that we are strategically focused on. Mike, I don't know if you've got anything else you want to add.

Jeremy, I'd just like to add in my opening comments, I talked about what I knew about the company before I got here as far as how clinically in-depth this location is and what they're doing to continue to enhance the strength of the clinical platform. Since joining the company and seeing Dr. Stotz and his team and all the investigator-initiated research and the resources the company is putting behind the products to prove more and to do more is one of the reasons I'm extremely excited about the future. So, when you talk about acceleration, it's not just always using the same product or the same and just trying to get momentum. It's building the platform that Josh has talked about, and that's what I believe is a really exciting fact about these companies. What you will see in the future that we really can't discuss today, but the economics and the efforts are being placed here at Electroport to make it happen.

Okay. We have now concluded the live Q&A portion of the call. With that, I will turn the call back over to Josh for closing remarks.

Thank you, Amanda. I wanted to take the opportunity to thank our shareholders for your patience and your continued support. To our patients, our providers, and our partners, thank you for trusting us with your care and your time. And most importantly to our team, thank you for showing up every day with the discipline and the ambition this opportunity demands. I really appreciate everyone's participation in today's call. We look forward to speaking with you again at our next quarter, and I wish you all a happy afternoon.

That concludes today's call. Thank you for your participation.