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spk01: Good day and thank you for standing by. Welcome to the ProSomnus Q2 2023 Investor Update Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Mike Cavanaugh.
spk02: Thank you and good morning. Welcome to the Persomnus Incorporated second quarter investor update call. We thank you for joining us. Earlier today, Persomnus issued a press release announcing our financial results for the quarter ended June 30, 2023. and describing the company's recent business highlights. You can access a copy of the announcement on the company's website at www.investors.prosomnus.com. With me on the call today are Prosomnus Chief Executive, Len Liptak, and Chief Financial Officer, Brian Dow. Len will begin the call discussing the quarter's business and operational highlights. Brian will then provide a review of financial results in our financial outlook for the remainder of 2023, and we will then conclude with a question and answer session. Before we begin, I would like to inform you that comments mentioned on today's call may be deemed to contain forward-looking statements and that actual results may differ materially from those expressed or implied as a result of certain risks and uncertainties. These risks and uncertainties are described in detail in our Securities and Exchange Commission filings, including our most recent S-1, filed on May 30, 2023. Our SEC filings can be found through our company website at investors.prosomnus.com or at the SEC's website. Investors are cautioned not to place undue reliance on such forward-looking statements, and Prosomnus undertakes no obligation to publicly update or release any revision to these forward-looking statements. Please note that this conference call is being recorded and will be available for audio replay on our website at prosomnus.com in the news and events section under our investor relations page shortly after the conclusion of this call. Today's press release and supplementary financial data tables have been posted to our website. And with that, I will turn it over to Len Liptak.
spk00: Thank you, Mike. Good day to everyone. Welcome to our second quarter investor call. On behalf of every member of Team Persomnus, I am pleased to report record financial results, operational excellence, and strategic progress that exceeded expectations for Q2 2023. Our vision is for Persomnus devices to be the leading treatment for the billion people worldwide suffering from obstructive sleep apnea. Our vision is based upon our assessment of the best available scientific data, feedback from expert clinicians, patient preference, medical guidelines, our technology development, and a belief that physicians, providers, payers, and patients will take a rational, scientific approach to selecting and reimbursing the optimal treatment option for every patient. Persomnus' immediate opportunity is to offer an effective, safe, and non-invasive treatment for the millions of people diagnosed with obstructive sleep apnea who have failed or refused continuous positive airway pressure, CPAP. We believe this immediate opportunity is estimated to be approximately $4 billion in the U.S. alone, representing one of the largest opportunities in medtech. Treating OSA is also one of the most compelling opportunities in medicine. the consequences of untreated OSA are well established, including significantly higher rates of mortality, an increased risk of heart attack and stroke, reduced cognitive function, impairment of everyday quality of life, and higher economic costs to payers and patients alike. We believe that our strong top-line revenues, steady and leverageable gross margin, compelling data reported in the period, and on-plan progress of our strategic initiatives represent meaningful progress towards realizing our vision and validates our value proposition. During the second quarter of 2023, Persommas generated record revenues of 6.9 million, representing a 43% increase year over year from the second quarter of 2022, and 19% sequentially from what was a very strong first quarter of 2023. Looking at the first six months of 2023, We're reporting revenues of $12.7 million, a 48% year-over-year increase when compared to the same period of 2022. Relative to percent of growth, these results place personas within the upper echelon of publicly traded medical device companies in terms of revenue growth. Our strong results year-to-date are reflective of the clinicians and patients who, in increasing numbers, are trusting, prescribing, and ultimately utilizing presomnist devices to provide a safe, effective, and noninvasive treatment for OSA. During the second quarter of 2023, clinicians prescribed nearly twice as many presomnist devices as surgical alternatives, for example, ultimately selecting our therapy, which clinical studies suggest is more effective, significantly more economical for providers, patients, and payers, and has fewer and less severe adverse events and side effects. Our EVO precision device family was a key driver of our growth in Q2 2023, representing 84% of sales volume. Post-market surveillance of 9,815 patients treated with Persomnus EVO indicate 97% patient satisfaction and 97% clinical satisfaction. 99% of clinicians stated that they would recommend EVO and prescribe EVO again. We believe these levels of patient and clinician satisfaction indicate a growing validation of our differentiation. In addition to the increasing clinical acceptance of our EVO precision devices, our revenue results for Q2 2023 and for the first six months of the year are also being driven by investments in our commercial capabilities. Based on the strong contributions from our excellent sales and manufacturing team members in North America and Europe, and an unprecedented opportunity to earn prescriptions from patients who have failed or refused CPAP, we invested in the expansion of our direct sales team and our targeted clinical marketing capabilities. Over the first half of 2023, we doubled our number of Prasamis direct sales consultants from 13 to 26. We expect that each new rep will generate $400,000 in incremental revenue within the first year and will build and carry on average a $2 million territory at maturity. a level our seasoned reps have demonstrated in the recent past. Once a territory reaches maturity, we will subdivide based on procedure volumes and provider locations with our current device offerings, labeling, and reimbursement rates. The objective for our sales consultants is to drive utilization rates at therapy providers who are primarily dentists trained in sleep medicine by originating and developing referral relationships with sleep-oriented physicians. Sales consultants accomplish this objective by clinical education, sharing data, and servicing, and fostering communications between sleep physicians and these therapy providers. We look forward to realizing additional revenue growth and leverage over the coming months from investments made in the first half of 2023 to expand our direct sales team. Looking forward, we have recently released and expect to have released additional data to further fuel growth as PROSOMUS devices were featured in the scientific abstracts and podium presentations at seven scientific conferences in Q2 2023 alone. Preliminary data from the frontline OSA treatment study, FLOSAP, was presented at the American Thoracic Society in May and the British Sleep Society in June. FLOZAT is a head-to-head crossover trial comparing the efficacy of precision oral appliance therapy as frontline treatment versus CPAP for patients with moderate and severe OSA. The preliminary readout from FLOZAT indicates that prosomnus devices are efficacious, safe, and patient-preferred as a frontline treatment relative to CPAP. Full results from FLOZAT are scheduled to be presented in August and also at the IBEDSMA conference in September and the World Sleep Congress in October. A secondary observation from the preliminary FLOSAT data is that the treatment of severe OSA is directionally more effective than invasive implantable treatments. The preliminary FLOSAT data demonstrate that 79% of patients with severe OSA were successfully treated to an AHI of less than 20 and a 50% improvement. HNS clinical studies routinely report success in the 65% range for moderate to severe OSA patients using the same success criteria but excluding concentric collapse patients due to a contraindication. Based on the flows and observations, we've begun designing a randomized controlled trial comparing precision oral appliance therapy and HNS for the treatment of severe OSA patients. The primary objective for this study is to provide physicians with the data to support optimal treatment selection for each and every patient. I'm also pleased to report progress on our severe OSA study known as the SOS study. The objective of our SOS study is to demonstrate the safety and effectiveness of treating severe OSA patients with persomnus evo. This data will be used to petition the FDA for expanding our label to include severe OSA. Severe OSA represents one-third of all patients, carries high perceived value amongst physicians, and is associated with opportunities for elevated reimbursement amounts. All six SOS investigational centers are fully online. with five centers enrolling patients and the sixth center expected to begin enrolling patients in Q3 2023. We anticipate full enrollment by the end of 2023 and a report on preliminary data in early 2024. One other notable data stream is the utilization of the sleep apnea specific hypoxic burden metrics. As you may know, the apnea hypopnea index counts sleep disordered breathing events. However, research indicates that AHI is not predictive of health risk. Alternatively, research has demonstrated that the sleep apnea hypoxic burden, a measure of hypoxia caused by a sleep apnea event, is predictive of all-cause mortality and cardiovascular risk. A scientific abstract presented at the American Thoracic Society in May 2023 demonstrated that treatment with prosomus precision medical devices successfully improved the sleep apnea-specific hypoxic burden for 91% of the 109 study participants, which included 36 mild, 35 moderate, and 38 patients with severe OSA. This result suggests that prosomnus is well positioned as the field of sleep medicine shifts to sleep apnea-specific hypoxic burden as a key metric for treatment planning and disease management. Our R&D team continues to make healthy progress on our RPMO2 project, our next-generation sensor-embedded device, The purpose of our RPMO2 sensor-embedded device is to enable the remote monitoring of patients' physiologic metrics, such as heart rate variability and sleep apnea specific hypoxic burden, that are predictive of OSA-related health risk. While our device treats the patient's OSA, the sensor embedded in our RPMO2 device will monitor the patient's physiologic response to the treatment. Data will be transmitted from the RPMO2 device to the patient's smartphone via Bluetooth, and then uploaded from the smartphone to the healthcare provider's portal. This medically important physiologic data will enable healthcare providers and their patients to actively and remotely manage OSA, enabling more evidence-driven treatment planning, reducing office visits and hospitalizations, and ultimately lower overall costs of care. In sum, our next hydration sensor device will be to OSA, what continuous glucose monitoring is for diabetes. This program remains on track. for first commercial use by the end of 2023. With that, I'd like to turn the call over to Brian Dow, our Chief Financial Officer, for a review of our financials. Brian?
spk03: Great. Thanks, Len. And thanks, everyone, for making time to join us today. As Len discussed a few moments ago, the second quarter of 2023 was another top-line record-breaking quarter with revenues totaling $6.9 million, representing an increase of 43% from the second quarter of 2022. a 19% increase sequentially from the first quarter of 2023. And for the first six months of 2023, revenue totaled $12.7 million, reflecting a 48% increase compared to the first six months of 2022. To reiterate a bit of what Len covered, the strong top line results reported for the quarter and year to date reflect the growing clinical adoption of our precision oral appliances, combined with the investments we have been making in our direct sales force during the first half of 2023, designed to capture this opportunity. Gross margin during the quarter remained consistent with prior periods at 54%, compared to 52% for the same period a year ago, and 53% for the first quarter of 2023. Looking below the numbers, cost of revenue includes materials and manufacturing personnel, as well as indirect costs, including our new manufacturing facility in Pleasanton. The second quarter was the first full quarter operating with the additional overhead of our new facility, and we are already seeing leverage in that we increased our production capacity 4X with only modest margin pressure during the first quarter and modest improvement in the second quarter when comparing to last year. We expect that with the continued growth of our business and additional cost-out initiatives, margins will continue to improve. Operating expenses for the quarter were $9.5 million compared to $4 million for the same period a year ago. The increase in operating expense was driven first by planned investments made in our direct sales organization, development of our RPM02 sensor-enabled device, and conducting our flow set head-to-head study versus CPAP and severe OSA indication label expansion study. Secondarily, the increase was driven by G&A expenses stemming from increased public company expenses, including additional headcount, contract labor, professional services, and trailing expenses from the listing in December. Taking a moment to drill down on the income statement. Sales and marketing expense increased to $3.6 million for the second quarter, reflecting an increase of $1.6 million or 81% compared to the second quarter of 2022 and an increase of $800,000 or 29% sequentially compared to the first quarter of 2023. Year-to-date sales and marketing expense totaled $6.5 million, an increase of $2.3 million or 57% for the same period in 2022. The increase in sales and marketing expense reflects the increase in direct sales reps domestically and in Europe that Len discussed a few moments ago. We currently stand at 26 direct sales personnel, and it is our expectation that our field representatives will reach productivity during their first year and then build over time to an average book of $2 million per year, depending on geography. We expect to end 2023 roughly where we are today in sales headcount and, as planned, Expect to leverage the existing investment with incremental expenses reflecting increased commissions. Research and development expenses increased to $1.4 million for the second quarter, reflecting an increase of $700,000, or roughly twice the $700,000 expense recognized for the second quarter of 2022, and an increase of $350,000, or 35% sequentially compared to the first quarter of 2023. Year-to-date research and development expenses total $2.4 million, an increase of $1.2 million from an increase of 1.2 for the same period during 2022. Consistent with our discussions on prior calls, R&D expenditures represent the planned investments in three major programs. First, the RPM02 sensor-enabled device. The RPM02 sensor device is the principal driver of the year-over-year increase in R&D. During the second quarter and the first half of 2023, compared to the same periods during 2022, as we have incurred incremental expenses associated with adding personnel with key skills to our development team and outside development services to develop the mobile app with which the RPMO2 communicates and transfers data to the cloud. Certain development elements have been completed at this point and will be replaced by testing, regulatory, and commercial readiness expenses during the remainder of the year. Thus, the current run rate will hold or modestly taper relative to the RPM02. Next, during the first half of 2023, we were very active in the development of clinical data, sponsoring two key studies, our FLOSAT and SOS studies. During the second quarter, our clinical study costs were comprised principally of site initiation expenses for our SOS study. Turning now to general and administrative expenses, G&A expenses increased to $4.5 million for the quarter, reflecting an increase of $3.2 million compared to $1.3 million for the second quarter of 2022, and an increase of $1.1 million, or 34%, sequentially compared to the first quarter of 2023. Year-to-date, general and administrative expenses totaled $7.8 million compared to $2.6 million for the same period during 2022. The increase in G&A can be grouped into three major categories, public company and post-listing transitional amounts, compensation, and facility-related expenses. Starting with public company and post-listing transitional amounts not incurred during the first half of 2022 totaled $2.4 million, including audit, legal, and filing services relating to the 28 substantive SEC filings during the period comprised of multiple registration statements, 10-Ks, Qs, 8-Ks, proxies, and so on, public company insurance, and a variety of smaller costs that when combined impact the period, including director fees, trailing transaction fees, and listing fees. Many of the professional services expenses will track downward in the back half of 2023, as the requisite registrations and filings directly related to our listing in December have been completed and will not recur on a go-forward basis. We will, however, remain above 2022 expenses going forward. Compensation contributed to the increase for the first half of 2023 compared to the first half of 22, including approximately $400,000 of increased stock-based compensation. The increase in compensation is comprised of additional professional headcount within the accounting, finance, and human resource functions, severance related to my predecessor, temporary contract labor to bridge between public company and hiring a full-time staff. We expect compensation to moderate during the second half of the year as we transition from more expensive contract support to full-time staff, and certain non-recurring expenses will not recur. In G&A, as we've discussed previously, during the first quarter of 2023, we moved into our new facility in Pleasanton, California. This move was necessary to secure the needed space to meet production demands of our rapidly growing commercial volumes. In addition, the space provides ample space for administrative services. During the first half of 2023, facilities expense increased roughly $500,000. Looking at other income and expense items, we have three basic elements, interest expense relating to our convertible notes, non-cash accounting adjustments related to items on the balance sheet that are carried at fair value, and other small to minimus operating expenses. Turning to the balance sheet for a moment, we ended the quarter with $6.2 million in cash. As we have discussed on prior calls, we remain well aware of the capital position and look forward to providing an update on that front in the near future. Taking a look forward toward the remainder of 2023, we previously provided guidance that year-over-year top-line revenue growth would be 35%, landing 2023 revenue just over $26 million. Based on the strong fundamental execution of our business reflected in the record top-line revenue results reported today, I am updating our outlook for 2023. We are increasing our expectations for 2023 and now expect top line revenue growth of 40%, landing 2023 revenue just over 27 million. With that, I'd like to begin the question and answer portion of the call. Operator, please open the call for questions.
spk01: Thank you. We will now conduct the question and answer session. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question is from Scott Henry of Roth Capital. Please proceed with your question.
spk05: Thank you, and good morning. Really strong revenues. When we think about second half, should we expect any trends between Q3 and Q4 or Should we think about consistent growth throughout?
spk00: Yeah, so, Scott, thanks for your question, and good to talk to you. Traditionally, what we see is a trend of seasonality between Q3 and Q4. This is largely driven by deductibles and people managing their out-of-pocket expenses, and so you normally see a little bit of a suppression in Q1 and an uplift in Q4, and we expect that seasonality to repeat itself we are seeing some differences, you know, coming out of COVID and seasonality with people taking different vacations at different times. So it's not perfectly representing, let's say pre COVID seasonality, but we do expect in the large part for that seasonality pattern to hold true.
spk05: Okay, great. And then, you know, just reflecting on a lot of the prepared remarks, the revenue is growing very strong, gaining market share much faster than the category. At some point, I would expect the business to hit an inflection point where the operating burn starts to decrease quarter over quarter as expenses trail revenue growth and leverage hits the bottom line. At what point do you think we should hit that inflection point and perhaps very soon?
spk00: Yeah, I'll say a few words and Brian will add a few comments to that too. But we expect to begin seeing leverage right away. We incurred some public company costs that ultimately are going to remain somewhat fixed. So as we continue to grow our revenues, we'll see leverage over those fixed costs. We moved into our new facility, which dramatically expanded our manufacturing capacity and manufacturing efficiency. So as those fixed costs get utilized over higher revenue levels, we expect to see leverage right away from that as well. So pre-COVID and pre-taking the company public, we were absolutely seeing the business respond in terms of leverage as we grow the business. We expect that pattern to return as we put the public company transaction in our rear view mirror and drive revenue over this new cost structure. Brian, anything you want to add to that?
spk03: Yeah, Scott, just one thing that I'll point out. There's a little bit of a stair-step function that happened as we came into 2023. We made a pretty heavy investment, as we talked about in our remarks, adding, basically doubling the number of direct salespeople, for example. And we don't expect to do that in the back half of the year. We took the step forward. We're going to let the new additions develop and leverage those for the remainder of the year and for the first half of next year. And then again, we will evaluate as the business grows on making the incremental additions to the sales team. From the R&D side of the house, there was an increase year over year simply because we had the opportunity to drive the investment to bring the RPM02 sensor-enabled device forward into 2023. We are initiating the label expansion for SOS. And as we go forward, we again have took the step up, but we do not expect to take similar steps like that for the remainder of 23 and for the first half of 24. Then obviously becoming a public company and just getting everything squared away in the first quarter was the G&A side of the house with public company expenses and wrapping up what was left over from the transaction listing from December. So we believe that we have made the investments, and now it is time to start leveraging those and That is what you will see as we go forward for the rest of this year.
spk05: Okay, great. Final question. The OAT sensor technology I think is really exciting, could be a game changer for the appliance category. When we think about that Q4 launch of this year, what are the risks? Is that getting delayed? Just trying to get an idea of how comfortable we should be in that Q4 target.
spk00: Yeah, great question, Scott. And it's exciting when you call it a game changer. It's also exciting when we do focus groups and interviews with KOLs and they call it a game changer. And we believe that it, in fact, absolutely has the potential to be a game changer for our field. You know, it's an R&D project, so there are always the normal risks with R&D projects in terms of the speed it takes to validate, you know, finally validate the technology and then also to get the final FDA clearance. So there's sometimes entities that are outside of our control, and those things can always affect the timeline. But historically, we have an excellent track record with FDA clearances. We have a very professional team that has a lot of experience with FDA clearances. And so when we look back at those processes and apply those lessons learned to the RPMO2, we feel comfortable with the timeline that we've let out.
spk05: Okay, great. Thank you for taking the question.
spk00: Yeah, Scott, thank you. Thanks, Scott.
spk01: Thank you. One moment while we compile our Q&A roster. Our next question is from Alex Nowak of Craig Hallam. Please proceed with your question.
spk04: All right, great. Good morning, everyone. I just want to put a point on Henry's second question there, just around the cash burn. Is it fair to assume that the cash burn this quarter is really going to be the peak there? especially as we start to trail off a little bit on the new headcounts, revenue growth continues to ramp nicely. Is that a fair point? And then just current thoughts on how to address the cash and the balance sheet right now.
spk03: Yeah, taking that in order, you're spot on. We do believe that we've hit the inflection point going forward. We're going to be able to leverage the investments that we've made in the first half of the year, and we just had to get the public company things behind us. So, yes, We expect a tapering for the remainder of 23 and then to be able to continue leverage going forward. And as we've indicated, we intended and will remain opportunistic with respect to capital raising and fundraising. We obviously pay very close attention to that on a daily basis. And as I indicated in my comments, we look forward to providing an update in the near future.
spk04: Okay. No, that's great. And, you know, the sales growth this quarter, really strong. Can you help break down the contribution throughout the quarter? I'm just curious, can you say how much is from the expanding sales force? How much is coming from just having more clinical data out there and perhaps any changes to the sleep apnea market just given the Philips ongoing recall?
spk00: Yeah, let me take a couple of those and then turn over to Brian for some additional comments if he has any. But yeah, so the main feature we're seeing, Alex, is our sales team going out and driving utilization rates of our existing therapy providers, reaching out to sleep physicians and creating referral relationships between those sleep physicians and the therapy providers. And that model is working very well. We are seeing some changes in the sleep market. I think anyone who's attended the battery of conferences over the past several months has been very pleasantly surprised the extent to which sleep physicians are actively seeking CPAP alternatives. A year ago, let alone two years ago, there was not a whole lot of openness to that type of discussion. Today, sleep physicians are very much looking for CPAP alternatives. And so we think that that's a very nice tailwind in conjunction with our efforts to expand our sales team, meet with those sleep physicians, make it easy for them to refer patients to local qualified dental therapy providers, dental sleep medicine therapy providers who are fluent in prescribing our devices.
spk04: Go ahead, Brian.
spk03: To add to that, With respect to the segments that are moving, we're moving the football down the field in fairly linear fashion. We're seeing growth within existing accounts. We're seeing new accounts come in and begin to mature. And with that, tying back to clinical data, you know, as we continue to add clinical data to the portfolio, it gives the field reps the opportunity to field additional questions that every clinician is going to have, and every clinician looks at it a little bit differently. And with the robust portfolio we have, we can address those issues and put them to bed. But again, we're seeing development and strong progress in basically all three of those verticals that we discussed.
spk04: You know, that's good to hear because, you know, obviously oral appliances have always gotten less focus than CPAP out in the market. And, you know, Prasandas is obviously changing that here. So the other question that I have is how important is the SOS study and also the FLOSAT study To get access to that severe market, or is the bigger benefit really going to be you'll be the only oral appliance out there, you know, Evo specifically can now treat severe disease, and essentially you're going to leapfrog every other oral appliance out there?
spk00: Yeah, all of the above. But I think the main thing, Alex, to keep in mind is that one of the, let's say, known limitations in sleep medicine is that there have been an inconsistent use of study endpoints and not a lot of head-to-head studies. And so what we're doing with our clinical affairs is trying to put medical-grade data in front of physicians that helps simplify their ability to select the optimal therapy for the patient that's before them. FLOSAT study does an incredibly important job of comparing prosomus devices with CPAP and demonstrating to physicians that our devices are safe and efficacious. as frontline treatment for patients. And that goes a long way towards our sales reps helping to educate sleep physicians and earning those referrals for patients who have refused or failed CPAP or potentially also frontline therapy for the right patients. So we think FLOSAT goes a long way towards fitting into our plan here. And then also the SOS study, There's, let's say, a very practical benefit to the SOS study, but then there's also, let's say, a branding, a broader strategic and branding benefit to SOS. The practical is that one-third of all patients have severe OSA, and as you say, Alex, we'll be the only oral device that has a severe clearance. That gives us an immediate advantage in the market. The second is is that severe has a high perceived value for all the right reasons. The morbidity-mortality curve show that severe patients are at much higher risk than moderate and mild patients. And so physicians really latch on to severe as being extremely important to their practices. And so being able to demonstrate that our devices are safe and efficacious for that severe patient population goes a long way towards making them also feel comfortable prescribing our therapy for moderates and milds and as frontline treatment as well.
spk04: That's great. And maybe just last question just on that point, an update on which clinical trials to expect and when. I think SOS is coming out here pretty soon. When we should expect the FLOSAT study to be published and any other clinical trial updates?
spk00: Yeah, great question. So FLOSAT, preliminary final data will be presented in August at our ProSleep conference here in San Francisco, but then presented in the scientific forum at the IBEZMA conference in October, and then again at the World Sleep Congress in October. IBEZMA is in September, World Sleep Congress is in October. SOS study, we expect a preliminary readout at the end of the year, or early Q1 of next year, rather, and with a full data set following shortly thereafter.
spk04: All right. Excellent. Appreciate the update. Thank you. Thanks, Alex.
spk01: Thanks, Alex. That is all the time we have for questions. I would like to now turn the conference back to Len Liptack for closing remarks.
spk00: First and foremost, I'd like to thank everyone for joining today's call. Thank you for supporting Persomnus. I would also like to thank team members from Persomnus who are doing an incredible job focusing on the utilization of our precision devices to create exceptional treatment experiences for physicians, providers, and their patients. We believe the continued strong top-line growth demonstrates the fundamental strengths of our business and operations, and we look forward to providing you further updates at our next investor call. Have a good rest of your day.
spk01: This concludes today's conference call. Thank you for participating. You may now disconnect.
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