electroCore, Inc. (ECOR) 2025 Q2 法說會逐字稿

Greetings and welcome to the electroCore second quarter 2025 earnings conference call. At this time, all participants have been placed in a listen-only mode. (Operator Instructions)

問候並歡迎參加 electroCore 2025 年第二季財報電話會議。目前，所有參與者都處於只聽模式。（操作員指示）

And as a reminder, this call is being recorded. It's now my pleasure to introduce you to your host, Dan Goldberger, electroCore's Chief Executive Officer.

提醒一下，本次通話正在錄音。現在我很高興向你們介紹主持人、electroCore 執行長 Dan Goldberger。

Thank you all for participating in today's electroCore earnings call. Joining me today is Joshua Lev, our Chief Financial Officer, and our investor relations firm FNKIR.

感謝大家參加今天的 electroCore 財報電話會議。今天與我一起出席的還有我們的財務長 Joshua Lev 和我們的投資者關係公司 FNKIR。

Earlier today, electroCore published results for the second quarter ended June 30, 2025. A copy of the press release is available on the company's website.

今天早些時候，electroCore 公佈了截至 2025 年 6 月 30 日的第二季業績。新聞稿副本可在該公司網站上查閱。

Before we begin, I'd like to remind you that management will make statements during the call that include forward-looking statements within the meaning of the federal securities laws, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.

在我們開始之前，我想提醒您，管理層將在電話會議中發表聲明，其中包括聯邦證券法所定義的前瞻性聲明，這些聲明是根據 1995 年《私人證券訴訟改革法案》的安全港條款作出的。

Any statements contained in this call that are not statements of historical fact should be deemed to be forward-looking statements. All forward-looking statements, including without limitation any guidance, outlook, or future financial expectations or operational activities and performance, are based upon the company's current estimates and various assumptions.

本次電話會議中包含的任何非歷史事實陳述均應被視為前瞻性陳述。所有前瞻性陳述，包括但不限於任何指導、展望或未來財務預期或營運活動和業績，均基於公司目前的估計和各種假設。

These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated or implied by these forward-looking statements. Accordingly, you should not place undue reliance on these statements. For a list of the risks and uncertainties associated with the company's business, please see the company's filings with the Securities and Exchange Commission.

這些聲明涉及重大風險和不確定性，可能導致實際結果或事件與這些前瞻性聲明預期或暗示的結果或事件有重大差異。因此，您不應過度依賴這些聲明。有關公司業務的風險和不確定性列表，請參閱公司向美國證券交易委員會提交的文件。

electroCore disclaims any intention or obligation, except as required by law, to update or revise any financial projections or forward-looking statements, whether because of new information, future events, or otherwise. This conference call contains time-sensitive information that is accurate only as of the live broadcast today, August 6, 2025.

electroCore 不承擔任何更新或修改任何財務預測或前瞻性聲明的意圖或義務，除非法律要求，無論是由於新資訊、未來事件或其他原因。本次電話會議包含時間敏感訊息，僅截至今天（2025 年 8 月 6 日）的現場直播時準確。

I want to take a moment and welcome James Theofilos to our board of directors as an independent director. Mr. Theofilos is a very accomplished young man and a successful executive at Microsoft, including prior roles in the global healthcare and life sciences business, helping with the integration of Nuance and the launch of multiple healthcare-specific products. He now serves on the Azure Plus AI team, leading all go-to-market efforts for finance at Microsoft for this product family.

我想花點時間歡迎詹姆斯·西奧菲洛斯 (James Theofilos) 加入我們的董事會並擔任獨立董事。Theofilos 先生是一位非常有成就的年輕人，也是微軟的成功高管，曾在全球醫療保健和生命科學業務中擔任過職務，幫助整合 Nuance 並推出多種醫療保健專用產品。他現在任職於 Azure Plus AI 團隊，負責領導微軟該產品系列的所有金融市場推廣工作。

The Theofilos family has been an equity investor in electroCore since inception almost 20 years ago, and I don't think they've sold any significant amount of their position in all that time. I look forward to working with Mr. Theofilos to build shareholder value at electroCore.

自從 electroCore 近 20 年前成立以來，Theofilos 家族一直是該公司的股權投資者，我認為他們在這段時間內並沒有出售任何大量股份。我期待與 Theofilos 先生合作，為 electroCore 創造股東價值。

Turning to our results, electroCore posted record revenue in the second quarter and continues to evolve from a single product into a broad-based bioelectronic technology company. We now offer a growing suite of medical devices and wellness products that serve both medical and consumer markets. The VA hospital system continues to be our largest customer, and as expected, we returned to above-market growth in that channel.

談到我們的業績，electroCore 在第二季度創下了創紀錄的收入，並繼續從單一產品發展成為一家基礎廣泛的生物電子技術公司。我們現在提供越來越多的醫療設備和保健產品，服務醫療市場和消費市場。VA 醫院系統仍然是我們最大的客戶，並且正如預期的那樣，我們在該管道恢復了高於市場的成長。

We closed the acquisition of Neurometrics on May 1st, and the integration has been completed ahead of schedule. We've added serious talent to our team, headlined by Kelly Benning as Senior Vice President of Truvaga and James Theofilos as an independent director, along with other superstars in all functional areas of the company.

我們於5月1日完成了對Neurometrics的收購，目前整合工作已提前完成。我們為團隊增添了重要人才，其中凱利·本寧 (Kelly Benning) 擔任 Truvaga 高級副總裁，詹姆斯·西奧菲洛斯 (James Theofilos) 擔任獨立董事，此外還有公司各個職能領域的其他超級明星。

For those who are new to the story, electroCore pioneered non-invasive vagus nerve stimulation. Today, the company offers a growing suite of non-invasive bioelectronic technologies that reduce chronic pain and improve quality of life for patients and wellness consumers in the United States and select international markets. Our expanding portfolio is supported by a robust pipeline of indications and applications driven by clinicians, researchers, and wellness advocates.

對於那些還不熟悉這個故事的人來說，electroCore 率先採用了非侵入性迷走神經刺激技術。如今，該公司提供越來越多的非侵入性生物電子技術，以減輕慢性疼痛並改善美國和部分國際市場患者和健康消費者的生活品質。我們不斷擴大的產品組合得到了臨床醫生、研究人員和健康倡導者推動的強大適應症和應用管道的支持。

Science and data will always be our north star. Our five-year compound annual growth rate is about 58%. In the second quarter of 2025, revenue reached a record $7.4 million, up 20% year-over-year and 10% sequentially. Gross margins remain strong at 87%, up slightly from 86% last year. We model gross margins in the mid-80s going forward.

科學和數據永遠是我們的北極星。我們的五年複合年增長率約為58%。2025 年第二季度，營收達到創紀錄的 740 萬美元，年增 20%，季增 10%。毛利率維持強勁，達到 87%，略高於去年的 86%。我們預測未來的毛利率將達到 80 年代中期。

VA revenue grew 12% sequentially from $4.7 million in Q1 to $5.3 million in Q2 2025. As of June 30, 2025, 188 VA facilities have purchased prescription Gamma Corp products, up from 175 a year ago. The VA Headache Centers of Excellence estimate approximately 600,000 patients are being treated for headache in the VA hospital system, including approximately 24,000 cluster headache patients.

VA 營收季增 12%，從第一季的 470 萬美元增至 2025 年第二季的 530 萬美元。截至 2025 年 6 月 30 日，已有 188 家 VA 機構購買了 Gamma Corp 處方產品，而一年前這一數字為 175 家。VA 頭痛卓越中心估計，VA 醫院系統內約有 60 萬名患者接受頭痛治療，其中包括約 24,000 名叢集性頭痛患者。

We've now dispensed Gamma Corp devices to approximately 10,700 veterans, roughly 2% of the addressable headache market we see within the VA system. The total addressable market within the VA channel is even larger if we include headache in post-traumatic stress disorder patients or headache in mild traumatic brain injury patients.

目前，我們已經向大約 10,700 名退伍軍人分發了 Gamma Corp 設備，約佔 VA 系統內可解決頭痛市場的 2%。如果我們將創傷後壓力症候群患者的頭痛或輕度創傷性腦損傷患者的頭痛也算進去，那麼 VA 管道內的總可尋址市場會更大。

We believe there are as many as 550,000 fibromyalgia patients in the VA hospital system based on published incidence and prevalence data. Our recently acquired, wholly owned subsidiary Neurometrics has dispensed less than 500 Qual fibromyalgia stimulators since launch in 2024, so we believe there's plenty of room to grow here as well.

根據已發布的發病率和盛行率數據，我們認為 VA 醫院系統中有多達 55 萬名纖維肌痛症患者。我們最近收購的全資子公司 Neurometrics 自 2024 年推出以來已分發了不到 500 台 Qual 纖維肌痛刺激器，因此我們相信這裡也有很大的成長空間。

We focused on our success and opportunity in the VA channel while deferring investments in the larger commercial insurance channels. We intend to turn our attention to commercial market access later this year, and we're hopeful those efforts will bear fruit in the future. Our direct-to-consumer general wellness brand, Truvaga, posted $1 million in Q2 sales. That's 74% year-over-year growth but a frustrating sequential decline.

我們專注於 VA 管道的成功和機遇，同時推遲對更大的商業保險管道的投資。我們打算在今年稍後將注意力轉向商業市場准入，並希望這些努力在未來能取得成果。我們的直接面向消費者的一般健康品牌 Truvaga 在第二季度的銷售額達到 100 萬美元。與去年同期相比，這一數字成長了 74%，但季減卻令人沮喪。

I'm confident that Truvaga will return to sequential growth under Kelly's leadership and the initiatives we have in place our revenue return on advertising spend for the period, which was approximately 2.0 meaning for every $1 spent on media, we generated nearly $2 of revenue. Return rates across our e-commerce platforms are approximately 10 to 11%, consistent with prior periods.

我相信，在凱利的領導下，以及我們實施的舉措下，Truvaga 將恢復連續增長，我們本期的廣告支出收入回報率約為 2.0，這意味著在媒體上每花費 1 美元，我們就能產生近 2 美元的收入。我們電子商務平台的退貨率約為 10% 至 11%，與前期一致。

Truvaga has now sold over 16,000 handsets, powering more than $1.1 million user sessions on our mobile app. We plan to accelerate marketing and promotional investments in our Truvaga platform to drive growth in 2026 and beyond. We believe that a Truvaga copycat from Eastern Europe has been infringing our patents and trademarks. You may have seen some filings in federal court in the District of New Jersey about our escalating dispute.

Truvaga 目前已售出超過 16,000 部手機，為我們的行動應用程式帶來了超過 110 萬美元的用戶會話。我們計劃加快對 Truvaga 平台的營銷和促銷投資，以推動 2026 年及以後的成長。我們認為，東歐的 Truvaga 仿製品侵犯了我們的專利和商標。您可能已經看到了新澤西州聯邦法院提交的一些有關我們不斷升級的爭端的文件。

I'm sure you'll understand if we refrain from commenting beyond the public filings. As Kelly develops her strategic plan, we expect to add new use cases and target demographics for our NBNS products and launch additional health and wellness offerings such as Quell Relief for lower extremity pain. Based on the opportunities in front of us, we are now investing in people, marketing, and product to accelerate growth and drive scale in 2026 and 2027.

我相信如果我們不對公開文件以外的內容發表評論，您會理解的。隨著凱利制定策略計劃，我們期望為我們的 NBNS 產品增加新的用例和目標人群，並推出更多健康和保健產品，例如用於緩解下肢疼痛的 Quell Relief。基於我們面臨的機遇，我們現在正在對人才、行銷和產品進行投資，以加速成長並在 2026 年和 2027 年擴大規模。

This is a strategic decision to prioritize growth and long-term value creation, likely delaying company-wide profitability. Our U.S. prescription channel recorded revenue of $394,000 during the quarter ended June 30, 2025, down 17% year-over-year as expected. Many cash-pay prescription customers have transitioned to the Truvaga brand as awareness grows.

這是一項優先考慮成長和長期價值創造的策略決策，可能會延遲整個公司的獲利能力。截至 2025 年 6 月 30 日的季度，我們的美國處方通路收入為 394,000 美元，年減 17%，符合預期。隨著認知度的提高，許多現金支付處方藥的客戶已經轉向 Truvaga 品牌。

As of June 30, 2025, we've enrolled 182 Truvaga Plus partners, including 49 G Concierge accounts who offer both product lines. Through the first half of 2025, these customers accounted for approximately $355,000 of Truvaga sales, representing a 14% year-over-year increase through the first six months of the period in that commercial space.

截至 2025 年 6 月 30 日，我們已招募 182 家 Truvaga Plus 合作夥伴，其中包括 49 個提供這兩條產品線的 G Concierge 帳戶。到 2025 年上半年，這些客戶為 Truvaga 帶來了約 355,000 美元的銷售額，相當於該商業領域前六個月的同比增長 14%。

We expect the transition to wellness offerings to continue in this channel as we look forward to adding new products such as Quell Fibromyalgia to these accounts as well. Revenue from outside the United States was $465,000 for the quarter, down 9% from the same period last year. Most of our OUS revenue continues to be generated in the United Kingdom by prescription Gamma Core sales funded by NHS, and we model flat revenue from this category for the time being.

我們預計該通路將繼續向健康產品轉型，同時我們也期待在這些帳戶中添加 Quell Fibromyalgia 等新產品。本季來自美國以外地區的營收為 465,000 美元，較去年同期下降 9%。我們的大部分 OUS 收入仍然來自英國，由 NHS 資助的處方藥 Gamma Core 銷售產生，目前我們對這一類別的收入進行了平穩建模。

We entered into a term debt facility with Avenue Capital on August 4, 2025, which provided approximately $7.2 million of additional net cash at closing. A second tranche of $4.5 million may become available to the company as well. The term of the loan is 48 months, earning cash interest at 12.5% initially. The floating rate will be calculated as WSJ plus 5%, with a 12.5% floor.

我們於 2025 年 8 月 4 日與 Avenue Capital 簽訂了定期債務融資協議，該協議在交易結束時提供了約 720 萬美元的額外淨現金。該公司還可能獲得第二筆 450 萬美元的融資。貸款期間為48個月，初始現金利息為12.5%。浮動利率將以《華爾街日報》利率加上 5% 計算，下限為 12.5%。

Avenue Capital has been granted 106,351 shares of ECOR common stock as a commitment fee, and up to $2.5 million of the principal amount is convertible at $8.46 per share. Additional disclosure is available in our 10-K. This facility gives us increased liquidity as we invest in growth, and I believe we are pursuing our growth strategy from a position of strength.

Avenue Capital 已獲得 106,351 股 ECOR 普通股作為承諾費，其中最高 250 萬美元的本金可以每股 8.46 美元的價格轉換。我們的 10-K 中提供了更多披露資訊。在我們投資成長的過程中，這個機制為我們提供了更高的流動性，我相信我們正以強大的實力推行我們的成長策略。

Josh will discuss operating expense, cash trajectory, and guidance in more detail later in the call. However, our cash balance as of June 30, 2025, was $7.4 million. That means our cash balance decreased by only $613,000 in the three months ended June 30, 2025, and a total of approximately $5 million in the first half of the year.

Josh 將在稍後的電話會議中更詳細地討論營運費用、現金軌跡和指導。然而，截至 2025 年 6 月 30 日，我們的現金餘額為 740 萬美元。這意味著我們的現金餘額在截至 2025 年 6 月 30 日的三個月內僅減少了 613,000 美元，上半年總計減少了約 500 萬美元。

We expect to consume about $4 million of cash in the second half of the year to execute our plan, including these accelerated investments, which would put our pro forma cash balance at December 31, 2025, at approximately $10.5 million, including the first tranche from the Avenue Capital loan. As I mentioned above, we've decided to accelerate certain investments in the second half of the year to set the stage for significant revenue growth in 2026 and 2027.

我們預計下半年將消耗約 400 萬美元現金來執行我們的計劃，包括這些加速投資，這將使我們 2025 年 12 月 31 日的預計現金餘額達到約 1050 萬美元，其中包括來自 Avenue Capital 貸款的第一批款項。正如我上面提到的，我們決定在今年下半年加快某些投資，為 2026 年和 2027 年的大幅收入成長奠定基礎。

These investments will be directed towards Truvaga initiatives and future prescription indications. Our board and management believe the time is right to invest in growth to create long-term value. As a result, our operating expenses will increase, and the revenue we require to be cash positive will increase accordingly.

這些投資將用於 Truvaga 計劃和未來的處方適應症。我們的董事會和管理層認為現在是投資成長以創造長期價值的最佳時機。因此，我們的營運費用將會增加，而我們需要的現金收入也將相應增加。

On our May 25 conference call, I said that we needed $9.5 million of quarterly revenue to be cash positive. Based on our more aggressive growth strategy, we'll now need $11.5 to $12 million of quarterly revenue to cover our increased operating expense plan and demonstrate positive cash from operations. That means 55% to 62% more than the $7.5 million of revenue we just posted, and I expect that we'll be able to hit those metrics later in 2026.

在 5 月 25 日的電話會議上，我說我們需要 950 萬美元的季度收入才能達到現金流正值。根據我們更積極的成長策略，我們現在需要 1,150 萬美元至 1,200 萬美元的季度收入來支付我們增加的營運費用計劃並展示來自營運的正現金。這意味著我們剛剛公佈的 750 萬美元收入將成長 55% 至 62%，我預計我們將能夠在 2026 年稍後達到這些指標。

It's important to remember that the contribution margin of our business model is still roughly 55% or more. Once we generate enough gross profit to cover our operating expenses, operating margins could increase dramatically. Now, I'll turn the call over to Josh for a review of our financials and select guidance. Josh.

重要的是要記住，我們的商業模式的貢獻利潤率仍然大約為 55％ 或更高。一旦我們產生足夠的毛利來支付我們的營運費用，營運利潤率就會大幅增加。現在，我將把電話轉給喬希，讓他審查我們的財務狀況並做出選擇指導。喬希。

Thank you, Dan. Net sales for the second quarter of 2025 were $7.4 million an increase of 20% as compared to $6.1 million for the second quarter of 2024. The increase of $1.2 million is due to an increase in net sales across our prescription and general wellness products.

謝謝你，丹。2025 年第二季的淨銷售額為 740 萬美元，較 2024 年第二季的 610 萬美元成長 20%。120 萬美元的增加是由於我們的處方藥和一般保健產品的淨銷售額增加。

Gross profit for the second quarter was $6.4 million as compared to $5.3 million for the second quarter last year. Gross margin was 87% compared to 86% for the second quarter last year.

第二季毛利為 640 萬美元，而去年第二季為 530 萬美元。毛利率為 87%，去年第二季為 86%。

Total operating expenses in the second quarter were approximately $9.9 million compared to $7.9 million in the second quarter last year. Research and development expense in the second quarter was $511,000 as compared to $635,000 in the second quarter last year. This decrease was primarily due to reduced development costs.

第二季總營運費用約為 990 萬美元，而去年第二季為 790 萬美元。第二季研發費用為 511,000 美元，去年第二季為 635,000 美元。這一下降主要是由於開發成本的降低。

For the remainder of 2025, we expect our research and development expense to be higher than the comparable periods in 2024. Selling general and administrative expense in the second quarter was $9.4 million as compared to $7.3 million in the second quarter of 2024. This increase was primarily due to the greater investment in selling and marketing costs, consistent with our increase in sales.

對於 2025 年剩餘時間，我們預計我們的研發費用將高於 2024 年同期。第二季銷售一般及行政費用為 940 萬美元，而 2024 年第二季為 730 萬美元。這一成長主要是由於銷售和行銷成本的投入增加，這與我們的銷售額成長一致。

$548,000 of bad debt expense associated with the taxed and receivable, increased expenses associated with professional fees. And increased rent expense associated with the Rockaway lease expansion.

與應稅和應收帳款相關的壞帳費用為 548,000 美元，與專業費用相關的費用增加。以及與 Rockaway 租賃擴張相關的租金費用增加。

For the remainder of 2025, we plan on continuing to make targeted investments in product, people, sales and marketing to support our commercial efforts.

在 2025 年剩餘時間裡，我們計劃繼續對產品、人員、銷售和行銷進行有針對性的投資，以支持我們的商業努力。

GA net loss was $3.7 million or a loss of $0.44 per share, as compared to GAAP net loss of $2.7 million or a net loss of $0.38 per share in the second quarter of 2024. The increase in GAAP net loss is primarily attributed to an increase in selling, general, and administrative expense, partially offset by an increase in gross profit.

GA 淨虧損為 370 萬美元，即每股虧損 0.44 美元，而 2024 年第二季 GAAP 淨虧損為 270 萬美元，即每股淨虧損 0.38 美元。GAAP 淨虧損的增加主要歸因於銷售、一般和管理費用的增加，但被毛利潤的增加部分抵消。

Adjusted EBITDA net loss was $2.4 million as compared to adjusted EBITDA net loss of $1.9 million in the second quarter of 2024. A reconciliation of GAAP net loss to non-gap adjusted IBEA net loss has been provided in the financial statement tables included in today's press release.

調整後 EBITDA 淨虧損為 240 萬美元，而 2024 年第二季調整後 EBITDA 淨虧損為 190 萬美元。今天的新聞稿中的財務報表表格提供了 GAAP 淨虧損與非差距調整後的 IBEA 淨虧損的對帳。

Cash equivalents, restricted cash, and marketable securities at June 30, 2025 totaled approximately $7.4 million as compared to approximately $12.2 million as of December 31, 2024.

截至 2025 年 6 月 30 日的現金等價物、受限現金和有價證券總計約為 740 萬美元，而截至 2024 年 12 月 31 日約為 1,220 萬美元。

That cash used in operating activities for the second quarter of 2025 was $623,000 as compared to $4.4 million in the first quarter of 2025. Total cash used in operating activities in the first half of the year was approximately $5 million. Changing net cash in the second quarter of 2025 was $613,000 from the first quarter of 2025.

2025 年第二季經營活動所用現金為 623,000 美元，而 2025 年第一季為 440 萬美元。上半年經營活動所用現金總額約500萬美元。2025 年第二季的淨現金變化為 613,000 美元，與 2025 年第一季相比。

This significant reduction in net cash used is primarily due to changes in working capital, as well as an increase of $526,000 of cash from the neurometrics balance sheet.

淨現金使用量的大幅減少主要是由於營運資本的變化，以及神經測量資產負債表中現金增加 526,000 美元。

In August 2025, the company raised net proceeds of approximately $7.2 million through a term debt facility with Avenue Capital. Pro forma cash as of June 30th, 2025, including proceeds of the term debt, would have been $14.6 million. We are reiterating our full year revenue outlook. For the full year of 2025, we expect total revenue to be approximately $30 million and net cash used for the next two quarters to be between $3.9 million and $4.4 million. Pro forma cash balance at December 31, 2025 would have been approximately $10.5 million including the first tranche from the avenue capital loan. And now, I'll turn the call back to Dan.

2025 年 8 月，該公司透過與 Avenue Capital 簽訂的定期債務融資籌集了約 720 萬美元的淨收益。截至 2025 年 6 月 30 日的預計現金（包括定期債務收益）應為 1,460 萬美元。我們重申全年收入預期。對於 2025 年全年，我們預計總收入約為 3,000 萬美元，未來兩季的淨現金使用量將在 390 萬美元至 440 萬美元之間。2025 年 12 月 31 日的預計現金餘額約為 1,050 萬美元，其中包括大道資本貸款的第一批款項。現在，我將把電話轉回給丹。

Thank you, Josh. I believe we have a tremendous amount of momentum going into the second half of 2025. Revenue in the VA channel has returned to sequential growth, and the integration of Neurometrics has been completed ahead of schedule.

謝謝你，喬希。我相信，進入 2025 年下半年，我們將擁有巨大的發展動能。VA通路收入恢復季增，Neurometrics整合提前完成。

We're entering Q3 2025 with new bioelectronic products and technologies that fit well into our established channels. We're increasing our efforts and investments to become a significant player in the health and wellness space. Although we expect profitability to be delayed due to increased spending on Truvaga, our new debt facility can provide up to approximately $12 million of additional cash to execute our plan.

我們將於 2025 年第三季推出與我們現有通路完美契合的新型生物電子產品和技術。我們正在加強努力和投資，以成為健康和保健領域的重要參與者。儘管我們預計由於 Truvaga 支出增加導致盈利能力下降，但我們的新債務融資可以提供高達約 1200 萬美元的額外現金來執行我們的計劃。

Demand for Gamma Core in the VA channel continues to grow based on clinical performance and our increased field presence. Our VA business returned to growth in Q2, and we’re launching prescription Quell Fibromyalgia through our field sales organization.

基於臨床表現和我們不斷增加的現場影響力，VA 通路對 Gamma Core 的需求持續成長。我們的 VA 業務在第二季度恢復成長，並且我們正在透過現場銷售組織推出處方藥 Quell Fibromyalgia。

We rely on our field sales team to drive revenue growth in the VA hospital system and other prescription and B2B channels. We completed a restructuring of our field sales function earlier this year. Currently, we have approximately 80 straight-commission sales agents, including sub-reps, managed by 12 salaried territory business managers. Five of these managers are relatively new, so we expect the size of our team to continue growing in the second half of 2025.

我們依靠我們的現場銷售團隊來推動 VA 醫院系統和其他處方和 B2B 管道的收入成長。我們在今年稍早完成了現場銷售職能的重組。目前，我們擁有約 80 位直接收取佣金的銷售代理（包括分銷售代表），由 12 位領薪的區域業務經理管理。其中五位經理相對較新，因此我們預計團隊規模將在 2025 年下半年繼續成長。

Truvaga Plus has been favorably received since its April 2024 launch. The brand shows strong potential as a direct-to-consumer wellness offering. We sell Truvaga products through our e-commerce site, www.truvaga.com.

Truvaga Plus 自 2024 年 4 月推出以來一直廣受好評。該品牌作為直接面向消費者的健康產品展現出巨大潛力。我們透過我們的電子商務網站 www.truvaga.com 銷售 Truvaga 產品。

We’ve hired Kelly Benning, a new digital health executive, to lead our health and wellness commercial strategy and accelerate adoption of the Truvaga product line across direct-to-consumer, B2B2C channels such as Truvaga Partners, Perks at Work, and select resellers.

我們聘請了新的數位健康主管 Kelly Benning 來領導我們的健康和保健商業策略，並加速 Truvaga 產品線在直接面向消費者的 B2B2C 通路（如 Truvaga Partners、Perks at Work 和精選經銷商）中的採用。

We continue to explore expansion of the Truvaga proposition through new product offerings, new features like integration with Apple Health, and we will be increasingly aggressive in protecting our patent portfolio.

我們將繼續探索透過新產品、新功能（例如與 Apple Health 整合）來擴展 Truvaga 的主張，並且我們將更加積極地保護我們的專利組合。

Interest from various branches of the active-duty military continues to develop for our TAC-STIM products. TAC-STIM revenue remains unpredictable as units evaluate and purchase in bulk for pilot deployments. We’re improving our ability to validate RFPs, and our funnel currently holds approximately $500,000 in open quotes.

現役軍人各部門對我們的 TAC-STIM 產品的興趣持續增長。由於各單位會評估並大量購買用於試點部署，TAC-STIM 的收入仍然難以預測。我們正在提高驗證 RFP 的能力，我們的頻道目前擁有約 50 萬美元的未結帳報價。

In Q2 2025, our sales and marketing expense increased sequentially by approximately $300,000, while sales grew by roughly $660,000—demonstrating continued operating leverage as we invest to drive future sales. We incurred expenses for several new W-2 hires during the period who will become productive in the second half of the year and help us achieve the leverage needed to become cash positive.

2025 年第二季度，我們的銷售和行銷費用環比增加約 30 萬美元，而銷售額卻增長了約 66 萬美元，這表明我們在投資推動未來銷售的過程中持續保持著經營槓桿作用。在此期間，我們為幾名新的 W-2 員工支付了費用，他們將在下半年開始工作並幫助我們實現現金流為正所需的槓桿作用。

As we continue adding new products to our established channels, we are also working toward additional indications for prescription Gamma Core, including treatment for PTSD and other clinical opportunities. Tariff exposure has been minimal. Our tariff expense doubled from $2,800 in Q1 2025 to $5,600 in Q2 2025, but these amounts remain small.

隨著我們繼續在現有管道中添加新產品，我們也在努力探索處方 Gamma Core 的更多適應症，包括治療 PTSD 和其他臨床機會。關稅影響極小。我們的關稅費用從 2025 年第一季的 2,800 美元翻了一番，達到 2025 年第二季的 5,600 美元，但這些金額仍然很小。

In summary, I believe we’re poised for accelerating growth. We’ll be increasing our investment in the health and wellness channel through the back half of 2025, with expectations of broader Truvaga adoption in 2026 and beyond. With the new term debt facility, we believe we have access to sufficient cash to execute this plan. At this time, we’ll turn the call over to the operator for questions.

總而言之，我相信我們已準備好加速成長。我們將在 2025 年下半年增加對健康和保健管道的投資，預計 Truvaga 在 2026 年及以後將得到更廣泛的採用。有了新的定期債務融資，我們相信我們可以獲得足夠的現金來執行該計劃。此時，我們將把電話轉給接線生以回答問題。

Thanks, Dan. We're now going to open the floor for Q&A. (Operator Instrcutions)

謝謝，丹。我們現在開始問答環節。（操作員指令）

Jeff Cohen of Ladenburg. Jeff

拉登堡的傑夫科恩。傑夫

Hello Dan and Josh, can you hear me okay?

你好，丹和喬希，你們聽得到我說話嗎？

Hi Jeff.

你好，傑夫。

Wonderful, much better. So, just a few questions from Aaron. Firstly, Dan, could you provide any insight into Truvaga as far as, composition of revenue with the two current SKUs that you have in the marketplace?

太棒了，好多了。那麼，Aaron 只想問幾個問題。首先，丹，您能否提供一些關於 Truvaga 的見解，包括目前市場上兩個 SKU 的收入組成？

Yeah, it's been an upside surprise to me, but our $500 Truvaga Plus, mobile app that enabled Truvaga Plus is accounting for about 80% of our revenue in the category, and the less expensive Truvaga 350 is lagging far behind.

是的，這對我來說是一個驚喜，但我們售價 500 美元的 Truvaga Plus，支援 Truvaga Plus 的行動應用程式占我們該類別收入的 80% 左右，而價格較低的 Truvaga 350 則遠遠落後。

Got it. Okay. That's nice to hear. So, secondly, could you talk a little bit about, have you actually, pursued any legal activity as far as patent infringement? And if so, are you doing that through the US courts or some type of, ICC court filings that we should expect to hear about?

知道了。好的。聽到這個消息我很高興。那麼，其次，您能否談談，您是否真的針對專利侵權採取任何法律行動？如果是的話，您是透過美國法院還是某種我們應該聽到的 ICC 法院文件來這樣做的？

So there's a, there's some cross complaints have been filed. In federal court in the District of New Jersey, and we're not going to comment beyond what's in those public filings.

因此，已經有一些交叉投訴被提起。在新澤西州聯邦法院，我們不會對這些公開文件以外的內容發表評論。

Okay. Was there any cost associated during the 2nd quarter, or do we expect to see some of that in the 3rd quarter, or you'll let us know?

好的。第二季是否有相關成本，或者我們預計第三季會看到一些相關成本，或者您可以告訴我們嗎？

Yeah, there was some legal expense that would have been incurred in the 1st and 2nd quarter of this year.

是的，今年第一季和第二季會產生一些法律費用。

Got it. And then lastly for us, you made some reference to new products in Q3. So should we be expecting new products in the marketplace, and if so, could you talk about it? Do you expect there to be DTC or B2B type of products?

知道了。最後，您提到了第三季的新產品。那麼我們是否應該期待市場上出現新產品？如果是的話，您能談談嗎？您是否預計會有 DTC 或 B2B 類型的產品？

So, I don't think I explicitly said new products. The Quell the prescription Quell fibromyalgia. The production line is now up and running in Rockaway, and in late June, we started to make samples and demos available to our sales force. So there, that's a, that is a product launch, but we've talked about the product, historically, so I'm not sure if that rises to the level of a new product, but from a revenue point of view, it's going to start, we think it will start generating material revenue in the back half of this year.

所以，我認為我沒有明確提到新產品。平息處方平息纖維肌痛。生產線目前已在洛克威投入運行，6 月底，我們開始向銷售人員提供樣品和演示。所以，這是一個產品發布，但從歷史上看，我們已經討論過該產品，所以我不確定它是否會上升到新產品的水平，但從收入的角度來看，它將開始，我們認為它將在今年下半年開始產生實質收入。

Got it. Okay, thanks for taking the questions. That those are for us. Congrats on the quarter.

知道了。好的，感謝您回答這些問題。這些都是給我們的。恭喜本季取得佳績。

Jeff.

傑夫。

(Operator Instructions)

（操作員指示）

I'll take a question that was submitted by Andrew Ren. How much are you increasing marketing spend on an annualized basis?

我將回答 Andrew Ren 提出的一個問題。您每年增加的行銷支出是多少？

So we haven't been, thank you for the question, Andrew, but we've, we're not breaking out components of SGNA, and total SGNA fluctuates quite a bit with timing, so I'm afraid I can't explicitly answer that question. I think you'll see our SGNA line go up 5% to 6%. Well--that, so sorry, I'm stumbling here a little bit.

所以我們還沒有，謝謝你的提問，安德魯，但是我們沒有分解 SGNA 的組成部分，而且 SGNA 總量會隨著時間而波動很大，所以恐怕我無法明確回答這個問題。我認為您會看到我們的 SGNA 線上漲 5% 至 6%。嗯——那，很抱歉，我在這裡有點磕磕絆絆。

SG&A, in our prescription businesses, scales with revenue because there's a large commission component and in our direct to consumer business, there's a component that scales with revenue around media and advertising spend. The blended average of all of that is about 30%. And so if revenue goes up 20% like it did this quarter, then that variable component of SGNA would go up 30% of 20%, so about 6%. Sorry to be so vague about it.

在我們的處方藥業務中，銷售、一般及行政費用會隨著收入而增長，因為佣金佔很大一部分；而在我們的直接面向消費者的業務中，有一個部分會隨著媒體和廣告支出的收入而增長。所有這些的混合平均值約為 30%。因此，如果營收像本季一樣成長 20%，那麼 SGNA 的可變部分將成長 20% 中的 30%，約 6%。抱歉，我對此說得如此含糊。

Charles Wallace of HCW.

HCW 的查爾斯華萊士。

Hi, this is, Charles on for RK. Thanks for taking my questions. I guess first for me, can you kind of comment on what ultimately led you guys to, on the decision to ramp up spending now and potentially delaying profitability and then, the second question is can you comment on, the contribution of Amazon sales to the handsets, in the quarter? Thank you.

大家好，我是 RK 的查爾斯。感謝您回答我的問題。我想首先，您能否評論一下最終是什麼原因導致你們做出現在增加支出的決定，並可能推遲盈利？然後，第二個問題是，您能否評論一下亞馬遜在本季對手機銷售的貢獻？謝謝。

Yeah, so we're. We don't have much to say about Amazon just yet. We're still working out some issues with the plumbing, and how orders get transferred from Amazon to our fulfillment. And as far as the timing goes, we, we've restructured our salesforce on the prescription side. We're seeing very exciting green shoots in our direct to consumer business.

是的，我們就是這樣。目前，我們還沒有太多關於亞馬遜的消息。我們仍在解決一些管道問題，以及如何將訂單從亞馬遜轉移到我們的配送中心。就時間而言，我們已經重組了處方方面的銷售團隊。我們在直接面向消費者的業務中看到了非常令人興奮的復甦跡象。

We closed the acquisition of neurometrics. We've been able to attract some really compelling talent. Starting with James Theofilos and Kelly Benning, who both bring quite a bit of digital health direct to consumer know-how. So, for all those reasons, the time is now to put our foot on the gas pedal and drive a more aggressive revenue growth. And there's plenty of leverage in the income statement with our 85%, 86% gross margins, so we're very confident that we're going to get to break even in a reasonable amount of time.

我們完成了對神經測量學的收購。我們已經能夠吸引一些真正有實力的人才。首先是詹姆斯·西奧菲洛斯 (James Theofilos) 和凱利·本寧 (Kelly Benning)，他們都為消費者帶來了大量數位健康方面的專業知識。因此，基於所有這些原因，現在是我們加強、推動更積極收入成長的時候了。我們的毛利率高達 85% 至 86%，損益表中的槓桿作用非常大，因此我們非常有信心在合理的時間內達到收支平衡。

Fantastic. Thanks for taking my question, of course.

極好的。當然，感謝您回答我的問題。

(Operator Instructions)

（操作員指示）

Dan, it appears that has exhausted the questions. Can I turn the call back over to you?

丹，看來我已經問了所有問題。我可以把電話轉回給你嗎？

Robert, I think there's a question in the chat box about Neuropediatrics products sold over the counter. Historically, certain versions of Quell were available direct-to-consumer under the over-the-counter label, including on Amazon. Now that we have the production line up and running, our first priority is to take advantage of our prescription channel in the VA hospital system. We’ll be evaluating how and when to relaunch Quell through our direct-to-consumer channels. I believe there was another question about timing.

羅伯特，我認為聊天框中有一個關於非處方神經兒科產品的問題。從歷史上看，Quell 的某些版本可以透過非處方標籤直接面向消費者銷售，包括在亞馬遜上。現在我們的生產線已經投入運行，我們的首要任務是利用退伍軍人醫院系統中的處方管道。我們將評估如何以及何時透過我們的直接面向消費者的管道重新推出 Quell。我相信還有一個關於時間的問題。

Yeah, let me read that out from the Q&A widget. How will this investment impact the time to profitability and what are your thoughts on 2026 and profitability?

是的，讓我從問答小工具讀出來。這項投資將如何影響獲利時間？您對 2026 年和獲利能力有何看法？

So, the, we believe that the investments are going to accelerate revenue growth, right? We just announced 20% year on year revenue growth. We wouldn't be making these investments if we didn't think that, sequential and year on year growth rate wouldn't increase. We need to get to $11.5 million of quarterly revenue from 7.5. That's 50% plus or minus revenue growth, and I'd love to see that happen sooner rather than later.

所以，我們相信投資將會加速營收成長，對嗎？我們剛剛宣布營收年增20%。如果我們不認為連續和同比成長率不會增加，我們就不會進行這些投資。我們需要將季度收入從750萬美元提高到1150萬美元。這意味著收入成長率在50%左右，我希望這個目標能盡快實現。

Great. Thank you, Dan. One more question from the text box. Can you talk about the return on advertising, that you're seeing and how that is trended, on the Truvaga side?

偉大的。謝謝你，丹。文字方塊中還有一個問題。您能談談您所看到的 Truvaga 廣告回報以及趨勢嗎？

Yeah, I think we said in the script that for the quarter just ended, our media efficiency ratio was 2.0. In other words, a dollar of advertising spend generated $2 of revenue. That's a little bit lower than previous periods. We've got a variety of initiatives and as I mentioned, some digital health executives joining the team. Where I think we're going to be able to return those KPIs to where they were late last year.

是的，我記得我們在文稿裡說過，剛結束的這個季度，我們的媒體效率比是2.0。換句話說，1美元的廣告支出可以帶來2美元的收入。這比前幾個時期略低一些。我們有各種各樣的舉措，正如我所提到的，一些數位健康主管加入了團隊。我認為我們能夠將這些 KPI 恢復到去年年底的水平。

Okay, and What appears to be the final question, you talk about Truvaga and Apple Health and and how that effort's going and what the compatibility is there.

好的，最後一個問題，您談談 Truvaga 和 Apple Health，以及這方面的努力進展如何，以及它們的兼容性如何。

Oh, great question. Yeah, so. A few months ago, we announced the integration of Truvaga into Apple Health. In and of itself, that's not a great deal, great big deal, but There are a tremendous number of third party apps that that offer. Diagnostic information, heart rate, breath rate, quality of sleep, and so it gives us access to that much larger biohacker ecosystem through the API that lets us talk to Apple Health. So, some of, some folks in the biohacker community have been very active in coming up with use cases, and I look forward to being able to make announcements about that later this year.

哦，好問題。是的，是這樣。幾個月前，我們宣布將 Truvaga 整合到 Apple Health。就其本身而言，這並不是什麼大事，但有大量的第三方應用程式可以提供這樣的服務。診斷資訊、心率、呼吸頻率、睡眠品質等，因此它使我們能夠透過 API 存取更大的生物駭客生態系統，從而與 Apple Health 對話。因此，生物駭客社群的一些人非常積極地提出用例，我期待著能夠在今年稍後宣布相關消息。

Well, thank you very much, Dan. That concludes the questions that were submitted. I now turn the call back over to you.

好吧，非常感謝，丹。提交的問題到此結束。現在我把電話轉回給你。

Great. Thank you, everybody. I appreciate your time. So many people, and counterparties have helped us get to this point. Special thanks to James Theophilus and his family office for their patience and support with us. Special thanks to the team. At Avenue Capital, for providing the liquidity, that we've gotten access to, and we look forward to great things going forward.

偉大的。謝謝大家。感謝您抽出時間。許多人和交易對手幫助我們達到了這一點。特別感謝 James Theophilus 和他的家族辦公室對我們的耐心和支持。特別感謝團隊。在 Avenue Capital，感謝我們提供的流動性，我們期待未來的偉大成就。

That concludes today's call. Thank you.

今天的電話會議到此結束。謝謝。