Sanara Medtech Inc (SMTI) 2023 Q4 法說會逐字稿

Welcome to the Syneron medtech, Inc. Fourth Quarter and 2023 Full Year Results and Business Update Conference Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note, this conference is being recorded. I will now turn the conference over to your host, Caroline Nicholls. You may begin.

歡迎參加 Syneron medtech, Inc. 第四季和 2023 年全年業績和業務更新電話會議。此時，所有參與者都處於只聽模式。正式演講後將舉行問答環節。如果有人在會議期間需要接線員協助，請按下電話鍵盤上的星號零。請注意，本次會議正在錄製中。現在我將會議交給主持人卡洛琳·尼科爾斯。你可以開始了。

Thank you, and good morning, everyone, and I'd like to welcome you to Ciner medtech Earnings Conference Call for the quarter and year ended December 31st, 2023. We issued our earnings release yesterday afternoon, and I would like to highlight that we have posted today's deck on the Investor Relations page of our website, the supplemental deck, as well as a copy of the earnings release and the Form 10 K for the quarter and year ended December 31st, 2023, or also available on this page. We will reference this information in our remarks today with us today are Ron Nelson, our Executive Chairman, Sach Fleming, our Chief Executive Officer, and Mike McNeil, our Chief Financial Officer. Please note that certain statements in this conference call in our press release and in our supplemental deck include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For more information about the risks and uncertainties involving forward looking statements and factors that could cause actual results to differ materially from those projected or implied by forward-looking statements, please see the risk factors set forth in our most recent annual report on Form 10 K. Also this conference call, our earnings release and supplemental deck reference certain non-GAAP measures. In that regard, I direct you to the reconciliation of these measures in the earnings materials that are available on our website.

謝謝大家，大家早安，歡迎大家參加 Ciner medtech 截至 2023 年 12 月 31 日的季度和年度收益電話會議。我們昨天下午發布了收益報告，我想強調的是，我們已在我們網站的投資者關係頁面上發布了今天的報告、補充報告以及本季度收益報告和 10 K 表格的副本截至2023 年12 月31日的年度，或也可在此頁面上找到。我們將在今天的演講中引用這些信息，今天與我們一起出席的有我們的執行主席 Ron Nelson、我們的首席執行官 Sach Fleming 和我們的首席財務官 Mike McNeil。請注意，本次電話會議、我們的新聞稿和補充資料中的某些陳述包含 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述。有關涉及前瞻性陳述的風險和不確定性以及可能導致實際結果與前瞻性陳述所預測或暗示的結果存在重大差異的因素的更多信息，請參閱我們最新的10 K 表格年度報告中列出的風險因素此外，本次電話會議、我們的收益發布和補充資料也參考了某些非公認會計準則措施。在這方面，我將指導您在我們網站上提供的收益資料中對這些措施進行核對。

Now I'd like to turn the call over to Ron.

現在我想把電話轉給羅恩。

Thank you, Calin, and good morning. Everyone. fourth quarter of 2023 was another record revenue quarter for senior and 2023 was another revenue record year. Company generated $17.7 million in revenue in Q4 and $65 million in revenue for the year. For the three months ended December 31, 2023, the Company had a net loss of $300,000 for the year ended December 31, 2023, we had a net loss of $4.4 million. We were breakeven on an adjusted EBITDA basis in Q4 and generated a $300,000 adjusted EBITDA loss for the year. We incurred expenses of $400,000 in the second half of 2023 due to an acquisition opportunity that didn't materialize in looking ahead to 2024, we expect to further expand our sales force and focus on new geographic areas, further penetrate additional specialties outside of both on spine and continuing to drive new product development, including expanding this decelerate RX platform, intellectual property as well as being developed and began developing peptides. We recently licensed from Tufts University to expand our peptide platform. We're also continuing to see complementary partnerships and platform expansion opportunities that could be beneficial to our business.

謝謝你，卡林，早安。每個人。 2023 年第四季是高階的營收季度的另一個創紀錄的季度，2023 年是另一個營收創紀錄的年份。該公司第四季營收為 1,770 萬美元，全年營收為 6,500 萬美元。截至2023年12月31日止三個月，公司淨虧損為30萬美元，截至2023年12月31日止年度，淨虧損為440萬美元。第四季調整後 EBITDA 達到損益兩平，全年調整後 EBITDA 虧損 30 萬美元。由於收購機會在2024 年並未實現，我們在2023 年下半年產生了40 萬美元的費用，我們預計將進一步擴大我們的銷售團隊並專注於新的地理區域，進一步滲透到這兩個領域之外的其他專業領域脊椎並繼續推動新產品開發，包括擴展這個減速 RX 平台、智慧財產權以及正在開發和開始開發的勝肽。我們最近獲得塔夫茨大學的許可來擴展我們的勝肽平台。我們也繼續看到可能有利於我們業務的互補合作夥伴關係和平台擴展機會。

I'd like to also provide a brief overview of tissue health plus our value-based care strategy. For post-acute care post-acute care. This strategy fits well with scenarios go to lower cost and improve outcomes within the health care system. However, there are significant differences between THP. and our surgical business, which is focused on the acute market related to healing and preventing infections of surgical sites. While PHP. is being developed to address the prevention and treatment of chronic wounds and home, given the differences in the care suite and the site of care selling channels and payment systems between our surgical business in tissue Health Plus we believe this is very complementary to our post-acute strategy partnership with InfuSystem. We envision the system wound care partnership being an integral part of the tissue Health Plus strategy, given their focus on overall wound care and the common objective of improving outcomes and lowering costs for the health care system. If we have begun to have discussions with other potential partners to share the development cost of our strategy that could result in scenario potentially owning less than a majority of tissue Health Plus, but carrying out this very important strategy.

我還想簡要概述組織健康以及我們基於價值的護理策略。用於急性後護理 急性後護理。此策略非常適合降低醫療保健系統成本並改善結果的方案。然而，THP 之間存在顯著差異。我們的外科業務專注於與手術部位癒合和預防感染相關的急性市場。而PHP.鑑於我們在組織 Health Plus 中的外科業務之間的護理套件以及護理銷售管道和支付系統地點的差異，我們相信這與我們的後期護理非常互補。我們預計系統傷口護理合作夥伴關係將成為組織健康+策略的一個組成部分，因為他們專注於整體傷口護理以及改善結果和降低醫療保健系統成本的共同目標。如果我們已經開始與其他潛在合作夥伴進行討論，以分擔我們策略的開發成本，這可能會導致可能擁有少於大部分組織 Health Plus 的情況，但執行這項非常重要的策略。

I will now turn it over to Zach to go into more details on our achievements during 2023.

現在我將把它交給扎克，詳細介紹我們在 2023 年的成就。

Thanks, Ron. I'd like to start by discussing the strategic and operational achievements that the Company realized in 2023.

謝謝，羅恩。首先我想談談公司在2023年實現的策略和營運成就。

In August, we acquired all rights for human wound care uses for salary, Rx and high costs in addition to other wound care assets. Since the transaction we have eliminated the royalty we pay on these two products, and we now have full rights to develop our own proprietary products. As we previously discussed, we had supply issues related to our LSA product line in 2023. In late 2023, we solve this issue and successfully launched and recorded our first sale of our site plus this product replaces our outside of tuning, replaces our LSA product in this process by an alternative supplier with in-house processing capabilities. This will afford us greater control of product supply. So it's easy The Company now has a sufficient supply of our site plus to meet currently expected demand, and we have measures in place to adequately stock the product in the future. In addition to our first sale of Alflex plus. In November 2023, we launched recorded our first sale of BioStorage advanced surgical solution. We view this product as a significant addition to the portfolio?

八月，除了其他傷口護理資產外，我們還獲得了人類傷口護理用途的所有權利，包括工資、處方和高成本。自交易以來，我們已經消除了為這兩種產品支付的特許權使用費，現在我們擁有開發自己的專有產品的完全權利。正如我們之前討論的，我們在 2023 年遇到了與 LSA 產品線相關的供應問題。2023 年末，我們解決了這個問題，並成功啟動並記錄了我們網站的首次銷售，而且該產品取代了我們的外部調整，在此過程中由具有內部處理能力的替代供應商取代了我們的LSA 產品。這將使我們能夠更好地控制產品供應。所以這很容易公司現在有足夠的供應來滿足當前的預期需求，我們已採取措施在未來提供充足的產品庫存。除了我們首次銷售 Alflex plus 之外。2023 年 11 月，我們首次銷售了 BioStorage 先進手術解決方案。我們認為該產品是產品組合的重要補充嗎？

Yes, Kipp, our breadth of portfolio and believe that it can be used in any surgery where scenario, but products are currently used in November 2023 scenario analysis and publication of a retrospective study involving 5,335 patients. The study demonstrated the effectiveness of salary, Rx, surgical powder and promoting surgical wound healing, specifically a significant decrease in surgical site infections was observed. This exhibited a significant reduction in surgical site infection rates of 59% that was among patients undergoing elective surgery. This reduction was most pronounced in clean cages with a 69% decrease in surgical site infection rates. In December, we executed a license agreement with Tufts University for 18 unique peptides. We are currently exploring opportunities to incorporate these peptides into new products that we could develop it Rochelle.

是的，Kipp，我們的產品組合很廣泛，並相信它可以用於任何手術場景，但產品目前使用的是 2023 年 11 月場景分析並發表的一項涉及 5,335 名患者的回顧性研究。該研究證明了工資、處方藥、手術粉和促進手術傷口癒合的有效性，特別是觀察到手術部位感染的顯著減少。這顯示接受擇期手術的患者的手術部位感染率顯著降低了 59%。這種下降在乾淨的籠子中最為明顯，手術部位感染率下降了 69%。12 月，我們與塔夫茨大學簽署了 18 種獨特勝肽的授權協議。我們目前正在探索將這些勝肽納入我們可以開發的新產品 Rochelle 的機會。

Turning to our sales results. In 2023, our products were approved or excuse me, were sold in over 1,000 facilities across 34 states and the District of Columbia, our products were approved to be sold into more than 3,000 facilities as of December 31, 2023. Sales and approvals of Biosearch continued to grow, and we are pleased with the traction we have seen in this product at the end of 2023, we had 39 field sales representatives, but we've made significant strides in our data analytics and the use of various sales metrics to both measure our performance as well as penetrate further into our existing accounts and hospital approvals. These efforts have given us detailed insights into our business and allowed us to refine our model for the steps that need to be taken to develop the sales, successful sales manager and territories. Sales of both our soft tissue products in our bone fusion products continued to grow. Sales of soft tissue products were $54.8 million in 2023 compared to $41.7 million in 2022. Sales of bone fusion products were $10 million in 2023 compared to $4 million in 2022.

轉向我們的銷售業績。2023 年，我們的產品獲得批准，在 34 個州和哥倫比亞特區的 1,000 多個設施中銷售，截至 2023 年 12 月 31 日，我們的產品被批准在 3,000 多個設施中銷售。Biosearch 的銷售和批准持續增長，我們對 2023 年底該產品的吸引力感到滿意，我們有 39 名現場銷售代表，但我們在數據分析和使用方面取得了重大進展各種銷售指標既可以衡量我們的業績，也可以進一步滲透到我們現有的客戶和醫院審批。這些努力使我們對我們的業務有了詳細的了解，並使我們能夠針對開發銷售、成功的銷售經理和區域所需採取的步驟來完善我們的模型。我們的骨融合產品中的軟組織產品的銷售持續成長。2023 年軟組織產品銷售額為 5,480 萬美元，而 2022 年為 4,170 萬美元。2023 年骨融合產品的銷售額為 1,000 萬美元，而 2022 年為 400 萬美元。

I'd now like to provide additional details beyond what Ron mentioned earlier on tissue health plus our value-based care strategy for the chronic wound market. We're currently in discussions with prospective partners to facilitate commercialization of tissue L plus and sharing the development cost of the complete strategy. Excluding non-cash items, our full year operating expenses for TCL plus in 2023 for approximately $5.2 million. While we work to find the right partners, we'll continue to build out the key capabilities needed to commercialize tissue Health Plus. These include a care hub, a managed service organization and a technology platform. The carrier hub will include a virtual care coordination and navigation center. The management service organization will be a network of providers delivering a high standard of patient side, wound care and the technology platform will be an automation and integration platform to scale the care hub and MSO. network workflows. We believe this comprehensive strategy will be unique and impactful and lowering costs and improving outcomes for wound care patients, providers and payers.

除了羅恩之前提到的組織健康以及我們針對慢性傷口市場的基於價值的護理策略之外，我現在想提供更多詳細資訊。我們目前正在與潛在合作夥伴進行討論，以促進組織 L plus 的商業化，並分擔整個策略的開發成本。不包括非現金項目，TCL plus 2023 年全年營運費用約 520 萬美元。在我們努力尋找合適的合作夥伴的同時，我們將繼續建立組織 Health Plus 商業化所需的關鍵能力。其中包括護理中心、託管服務組織和技術平台。運營商中心將包括一個虛擬護理協調和導航中心。管理服務組織將是一個提供高標準患者側、傷口護理的提供者網絡，而技術平台將是一個自動化和整合平台，用於擴展護理中心和 MSO。網路工作流程。我們相信，這項綜合策略將是獨特且有影響力的，可以降低傷口護理患者、提供者和付款人的成本並改善結果。

I will now turn it over to Mike to discuss our financial results.

我現在將把它交給麥克討論我們的財務表現。

Thank you, Zach. As Ron mentioned earlier, we generated revenue of $65 million in 2023 compared to $45.8 million in 2022, a 42% year over year increase. The higher net revenue in 2023 was primarily due to increased sales of soft tissue repair products, which includes accelerate RX and bone fusion products. As a result of our increased market penetration, geographic expansion and our continued strategy strategy to expand our independent distribution network in both new and existing U.S. markets. Full year 2023 SG&A expenses were $57 million compared to $46 million in 2022. Sg&a as a percent of revenue decreased from 100.3% in 2022 compared to 87.7% in 2023. The higher SG&A expenses were primarily due to higher direct sales and marketing expenses, which accounted for approximately $8.1 million or 74% of the increase compared to the prior year period. The higher direct sales and marketing expenses in 2023 were primarily attributable to an increase in sales commissions of $6.9 million as a result of higher product sales, 2023 SG&A expenses also included $1.2 million of increased costs as a result of sales force expansion and operational support and $0.4 million of costs associated with an acquisition opportunity that didn't materialize. We expect our SG&A expenses to continue to decline as a percent of net revenues as our sales growth outpaces the cost of sales force expansion in corporate overhead. 2023 R&D expenses were $4.1 million compared to $3.4 million in 2022. The higher R&D expenses in 2023 were primarily due to costs related to the precision healing diagnostic imager and LFA. R&D expenses for 2023 also included costs associated with ongoing development projects for our products currently in development, we had a net loss before income tax of $4.4 million for the year ended December 31, 2023, compared to a loss before income tax of $13.9 million in 2022. The lower loss in 2023 was primarily due to increased gross profit and changes in fair value of earn-out liabilities, partially offset by higher SG&A costs, higher R&D expenses and higher amortization of acquired intangible assets for the year and for the year December 31st, 23, we had a net loss of $4.4 million compared to a net loss of $8.1 million in 2020. To the note, lower net loss of 23 was primarily due to additional gross profit realized on higher 2023 revenues. Our cash on hand at the end of the year was $5.1 million. With that, I'll turn it back to Ron for some closing remarks.

謝謝你，扎克。正如 Ron 之前提到的，我們 2023 年的收入為 6,500 萬美元，而 2022 年為 4,580 萬美元，年增 42%。2023 年淨收入增加主要是由於軟組織修復產品的銷售增加，其中包括加速 RX 和骨融合產品。由於我們市場滲透率的提高、地理擴張以及我們在新的和現有的美國市場上擴大我們的獨立分銷網絡的持續戰略戰略。2023 年全年 SG&A 費用為 5,700 萬美元，而 2022 年為 4,600 萬美元。SG&A 佔營收的百分比從 2022 年的 100.3% 下降至 2023 年的 87.7%。SG&A 費用增加主要是由於直接銷售和行銷費用增加，與去年同期相比，增加額約為 810 萬美元，即 74%。2023 年直接銷售和行銷費用增加的主要原因是產品銷售增加導致銷售佣金增加 690 萬美元，2023 年 SG&A 費用還包括因銷售團隊擴張和營運支援而增加的 120 萬美元成本，以及與未實現的收購機會相關的40 萬美元成本。我們預計，由於我們的銷售成長超過了公司管理費用中銷售人員擴張的成本，我們的銷售成長、管理費用佔淨收入的百分比將繼續下降。2023 年研發費用為 410 萬美元，而 2022 年為 340 萬美元。2023 年研發費用較高，主要是因為與精準治療診斷影像儀和 LFA 相關的成本。2023 年的研發費用還包括與我們目前正在開發的產品的持續開發項目相關的成本，截至2023 年12 月31 日的年度，我們的所得稅前淨虧損為440 萬美元，而2023 年的所得稅前虧損為1,390 萬美元。2023年虧損減少主要是由於毛利增加和盈餘負債公允價值變化，部分被當年和12月31日的銷售費用、研發費用和收購無形資產攤銷增加所部分抵銷。虧損為440 萬美元，而2020 年的淨虧損為810 萬美元。值得注意的是，淨虧損減少 23 主要是由於 2023 年收入增加而實現了額外的毛利。年底我們手上現金為 510 萬美元。說到這裡，我將把它轉回給羅恩，讓他做一些結束語。

Thank you, Mike. As we mentioned before, scenario had both a record quarter and record year in 2023. We continue to build the infrastructure that we need to support our growth in the future, and we're grateful for the hard work and dedication of the entire team.

謝謝你，麥克。正如我們之前提到的，2023 年的季度和年度均創歷史新高。我們將繼續建立支持未來發展所需的基礎設施，我們感謝整個團隊的辛勤工作和奉獻精神。

That concludes our remarks, and we look forward to answering any questions you may have. Operator, we're ready to open like to open the call for questions.

我們的演講到此結束，我們期待回答您的任何問題。接線員，我們已準備好開始提問。

Thank you. Secondly, at this time, we will be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue you may press star two. If you would like to remove your question from the queue. Participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please while we poll for questions.

謝謝。其次，這個時候我們將進行一個問答環節。如果您想提問，請按電話鍵盤上的星號一。確認音將表示您的線路在問題佇列中，您可以按星號二。如果您想從佇列中刪除您的問題。使用揚聲器設備的與會者可能需要在按星號鍵之前拿起聽筒。請稍等，我們進行投票提問。

Yes. Your first question for today is from Ross Osborne with Cantor Fitzgerald.

是的。今天你們的第一個問題是羅斯·奧斯本和坎托·菲茨杰拉德提出的。

Again, good morning and congrats on the strong results so starting off maybe with Biosearch, could you discuss how many centers we sold in during the fourth quarter and maybe how many Europeans would be sold at it as a follow up now and feel like we can share more than launch.

再次，早安，祝賀取得了強勁的業績，所以也許可以從Biosearch 開始，您能否討論一下我們在第四季度銷售了多少個中心，以及作為後續行動，現在可能會銷售多少歐洲人，感覺我們可以分享的不僅僅是發布。

Zach, do you want to take that? Zach, you're on mute.

札克，​​你想接受嗎？札克，​​你處於靜音狀態。

I'm sorry. I heard the first part. You said how many centers in the fourth quarter? What was the second part?

對不起。我聽到了第一部分。你說第四季有幾個中鋒？第二部分是什麼？

But just any feedback you could share?

但您可以分享任何回饋嗎？

Yes. So biosurgicals has been we're very well liked out in the market as you know, we had a from a pre pre launch soft trial where we, as I said, product out of facilities, we're able to get feedback from surgeons, and that's yielded quite a few pretax sales approvals and we'd be able to sell those immediately. And then we've spent a lot of time since the launch really November and December just gaining additional traction in the market, getting additional trials going. As you recall, when we do approvals, we have to go through sort of the back analysis, but oftentimes it's a trial as well, where they want to take a look at the product for a few patients. And so we've done that and we have not disclosed the number total for the fourth quarter, but we feel really good about where we are. We have about at this point, right around 51 through the fourth quarter, Kevin, just texted me. So we did a we did add 51 in the fourth half 51 through the fourth quarter and are actively selling to those. And we're continuing to add to those, which we'll discuss next quarter where we progress, but we're really happy with the product. And the doctors have really found that to be a really nice Adhibit to the same cases that they're already using Zelle Reagan as well as some of our bone biologics. So as you can imagine, they want to prepare the site by getting rid of them, biologic contaminants, any of the biofilm, et cetera. And then they add in our product like accelerate to help close the wound.

是的。因此，生物外科手術一直是我們在市場上非常受歡迎的，正如你所知，我們進行了預啟動軟試驗，正如我所說，我們在設施外生產產品，我們能夠從外科醫生那裡獲得反饋，這已經獲得了相當多的稅前銷售批准，我們可以立即出售它們。自從 11 月和 12 月推出以來，我們花了很多時間來獲得市場的更多關注，進行更多的試驗。您還記得，當我們進行審批時，我們必須進行某種回溯分析，但通常這也是一次試驗，他們想為一些患者查看產品。所以我們已經做到了這一點，我們還沒有透露第四季度的總數，但我們對我們的現狀感到非常滿意。就在這時候，第四節打到 51 分左右，凱文剛剛給我發了簡訊。因此，我們在第四季度增加了 51 家公司，並積極向這些客戶出售產品。我們正在繼續添加這些內容，我們將在下個季度討論我們的進展，但我們對這個產品非常滿意。醫生確實發現，對於他們已經使用 Zelle Reagan 以及我們的一些骨生物製劑的相同病例來說，這是一個非常好的 Adhibit。正如您可以想像的那樣，他們希望透過清除它們、生物污染物、任何生物膜等來準備場地。然後他們在我們的產品中添加加速劑等來幫助關閉傷口。

And again, Greg, as we've been able and Kinross, obviously, it's very complementary to celebrate, as Zach mentioned, and given that we you know that we have published the study retrospective study that we did for reduction of surgical site infection. This just goes hand-in-hand with that very complementary. So I think it's going to be well received by the surgeons that already use satellite.

再說一次，格雷格，正如我們和金羅斯所做的那樣，顯然，正如扎克提到的，慶祝是非常互補的，並且考慮到我們已經發表了我們為減少手術部位感染所做的回顧性研究。這與互補性密切相關。所以我認為它會受到已經使用衛星的外科醫生的好評。

Got it. Great to hear it. And then maybe lastly for me, just on accelerate what you hope to improve with that offering by the acquisition of the 18 peptides?

知道了。很高興聽到這個消息。也許最後對我來說，只是加速您希望透過收購 18 種勝肽來改進該產品？

Jacquie?

杰奎？

Ross, you want to take that idea and

羅斯，你想採納這個想法

I didn't actually hear the question.

我實際上沒有聽到這個問題。

He just asked what are we trying to accomplish by getting 18 peptide. So different, we had a peptide.

他只是問我們透過獲得18肽想要實現什麼目標。如此不同，我們有一種勝肽。

But on the other hand, I'm happy to take that.

但另一方面，我很高興接受這一點。

So Ross, we the obviously a separate falls into the category of being a having collagen peptides. And one of the keys that we're trying to do is increase our IP around the whole collagen strategy that we've got going forward with separate Rx and on. And we are, as we mentioned, we want to expand our coverage into other specialties. There might be uniqueness needed or required based on certain specific some comments in peptides that we would like to develop. And so they've got a number of indications for use through those 18. And as we sort through that and begin to look at what those priorities are going to be for us going forward. We will obviously keep it centered around accelerate our efforts, which is obviously our obviously a great product today will continue to be in the future. Just wanted to strengthen that platform, but also expanded into more usages within the surgical arena. And some of those peptides actually have application outside of that and more than likely in that case, we will be seeking partners to have stronger capabilities on the marketing front for us with those. But the dominant reason that we did that is to continue to secure more and more technological advantage in the marketplace through our IP.

所以羅斯，我們顯然屬於具有膠原蛋白勝肽的類別。我們正在努力做的關鍵之一是圍繞整個膠原蛋白策略增加我們的智慧財產權，我們已經透過單獨的 Rx 等人向前推進。正如我們所提到的，我們希望將我們的覆蓋範圍擴大到其他專業。根據我們想要開發的勝肽中的某些特定評論，可能需要或需要獨特性。因此，他們透過這 18 種藥物獲得了許多使用適應症。當我們對此進行整理並開始考慮這些優先事項對我們未來的發展有何影響時。顯然，我們將繼續以加快我們的努力為中心，這顯然是我們今天的一個偉大產品，未來將繼續如此。只是想加強該平台，但也擴展到外科領域的更多用途。其中一些勝肽實際上具有除此之外的應用，並且很可能在這種情況下，我們將尋找合作夥伴在行銷方面為我們提供更強的能力。但我們這樣做的主要原因是透過我們的智慧財產權繼續在市場上獲得越來越多的技術優勢。

Sanjay? Hi. Thanks for taking my questions and congrats on strong results.

桑傑？你好。感謝您回答我的問題，並祝賀取得了優異的成績。

Thank you. Ron.

謝謝。羅恩.

Thank you. Your next question is a webcast question from Neil cattle cattle. All D, you mentioned LSA sales began to back pickup backup in October of last year. However, we didn't see much of an increase in its revenue segment during the fourth quarter. Can you give us a sense for where you're at today with LSI in terms of ramping back to a normal run rate? And how should we think about that run rate in terms of annual?

謝謝。您的下一個問題是尼爾牛牛的網路直播問題。All D，您提到 LSA 銷售從去年 10 月開始支持皮卡銷售。然而，我們在第四季並沒有看到其收入部門有太大成長。您能否向我們介紹一下目前 LSI 在恢復正常運作速度方面的進展？我們應該如何考慮年度運行率？

Yes, sure. I can take that. So yes, we did have I see a kind of a delay in or inability to get full supply late last year, starting around September and actually extended into October. We did a good job of managing based on the sizes available. And so to your point, we didn't see a tremendous drop-off density, a tremendous increase from that particular product because of the management of just the sizes as they were demanded out in the market. And so what we've done is with our site plus, you have to go back out to the facilities, get a new approval, becomes a line extension or a new product that has to get added. And so we've done that and gone back to facilities where we had had some momentum and had lost the ability to sell because of supply. And then now we're back on paid with most of those facilities. Some of them had moved on to other products. But for the most part, we're able to get back on track with all those facilities.

是的，當然。我可以接受。所以，是的，我們確實看到去年年底出現了某種延遲或無法獲得充分供應的情況，從 9 月左右開始，實際上一直延續到 10 月。我們在根據可用尺寸進行管理方面做得很好。因此，就您的觀點而言，我們沒有看到該特定產品的密度大幅下降或大幅增加，因為我們只是按照市場需求的尺寸進行管理。因此，我們所做的是在我們的網站上加上，您必須返回設施，獲得新的批准，成為必須添加的產品線延伸或新產品。因此，我們已經做到了這一點，並回到了我們曾經有一些動力但由於供應而失去銷售能力的工廠。現在我們又恢復了大部分設施的付費。他們中的一些人已經轉向其他產品。但在大多數情況下，我們能夠利用所有這些設施回到正軌。

But then there's the additional time that takes to stock and then start to ramp up. And then then we're trying to regain some of the business from the surgeons and so forth. And of course, the distributors that work with us as well and retrain them coach them back up on this particular product and then get it started again. So that's where we see that. And it's kind of like that whole fourth quarter was the kind of regain our footing. And then into this year, start to sell in and proactively approach new facilities and go beyond where we were. So we kind of tread water, if you will, and now we're on the move forward and we feel confident in our approach and where we're headed with that product is starting to move forward.

但隨後需要額外的時間來備貨，然後開始增加。然後我們試圖從外科醫生等手中奪回一些業務。當然，與我們合作並對他們進行再培訓的經銷商也會指導他們重新使用該特定產品，然後重新開始使用。這就是我們所看到的。整個第四節就好像我們重新站穩腳步一樣。然後進入今年，開始銷售並積極接近新設施並超越我們的水平。所以，如果你願意的話，我們有點原地踏步，現在我們正在向前邁進，我們對我們的方法充滿信心，我們的產品的發展方向也開始向前邁進。

Very nice.

很不錯。

Your next question is from Michael Lu at ICE.

您的下一個問題來自 ICE 的 Michael Lu。

Yes, hi, guys. Thanks for taking my questions. Congrats on the quarter. And my first question, could you potentially clarify the sales force growth throughout the year? I think you disclosed last year that you ended the year at 39 and you're at 39 now, and it sounded like you added a couple of throughout the year and it seems to be about flat. So could you just maybe take us through the cadence of them, how many sales reps you've had throughout the year and where the major changes have happened?

是的，嗨，夥計們。感謝您回答我的問題。恭喜本季。我的第一個問題，您能否澄清全年銷售人員的成長情況？我想你去年透露，你今年結束時的年齡是 39 歲，現在是 39 歲，聽起來你全年都增加了一些，而且似乎持平。那麼您能否向我們介紹一下他們的節奏、全年有多少銷售代表以及發生了重大變化的地方？

Yes. I think the simple way to think of it is that three folks got reclassified and then for roughly four got analyst Board got terminated in Q4. And then so you had kind of reclassifications promotions would be part of that and then terminations and

是的。我認為簡單的思考方式是，三名員工被重新分類，然後大約四名分析師董事會在第四季度被終止。然後你會進行某種重新分類，促銷將成為其中的一部分，然後終止和

Okay. So broadly, Olivia, that.

好的。總的來說，奧利維亞，就是這樣。

Yes, Michael, the one thing that I think is the most noteworthy is that we accomplished a 42% increase in revenue growth with the same number of beginning and at the beginning of 2023 or ending at 2022. And where we ended 2023. Our data analytics, as Zach mentioned earlier, are being well utilized. We're seeing much better efficiency. And so we have a much better job speed to profitability per rep. We also have a much better understanding of their potential and how to achieve that potential within each one of the areas that they're selling him. So I think the efficiency gains we've gotten there is giving us great leverage on our sales force and then we'll just continue to expand as needed into the marketplace.

是的，邁克爾，我認為最值得注意的一件事是，我們在 2023 年年初和 2022 年結束的相同數量的情況下實現了 42% 的收入增長。2023 年我們結束了。正如扎克之前提到的，我們的數據分析得到了很好的利用。我們看到效率大大提高。因此，我們每個代表的獲利速度要快得多。我們也更了解了他們的潛力，以及如何在他們出售他的每個領域內實現這一潛力。因此，我認為我們所取得的效率提升使我們對銷售團隊產生了巨大的影響力，然後我們將根據需要繼續擴展到市場。

Yes, we're always making adjustments to the team at when it whenever we see it all this data and analytics really trying to make adjustments to optimize the team. Obviously, you'll continue to see that that's not going to change. And we always want to increase efficiency where we can. And so that's the second component of that where we're at, like Ron said, we're going to look at that data. We're going to optimize location, and we're optimizing the call points. And so in doing that, that's that's the kind of plus minus. And we have always let people go that maybe aren't working out as well. So that just will continue to happen.

是的，每當我們看到所有這些數據和分析確實試圖做出調整以優化團隊時，我們總是對團隊進行調整。顯然，你會繼續看到這一點不會改變。我們始終希望盡可能提高效率。這就是我們現在的第二個組成部分，就像羅恩說的那樣，我們將查看這些數據。我們將優化位置，並優化呼叫點。所以在這樣做的過程中，這就是一種加減。我們總是讓那些可能表現不佳的人離開。所以這種情況將會繼續發生。

Okay, great. And then on the tissue health plus potential spin out our partnership, and I appreciate you can't provide too many details yet, but I was curious if you could tell us what stage you are in the talks of doing that spin out. And then my main question is when you do a transaction that one way or another gets tissue, how to close off your books, would that be a cash inflow to scenario or a cash outflow for you? Or would it not impact your cash?

好的，太好了。然後，關於組織健康和潛在的分拆我們的合作夥伴關係，我感謝您還不能提供太多細節，但我很好奇您能否告訴我們您在分拆的談判中處於哪個階段。然後我的主要問題是，當你進行一筆以某種方式獲得紙巾的交易時，如何關閉你的帳簿，這對你來說是現金流入還是現金流出？或者說這不會影響你的現金嗎？

Yes. So we do here's how I would describe it, Michael, due to our strategy, we're very much big believers that tissue Health Plus no one has ever accomplished pulling the comprehensive strategy together, the way that we've described it today to you and our overarching goals are achieved funding for the strategy with partners that can actually help implement the strategy, as you saw that we've got the MSO network as part of what we do, that is not something that we would own. So that's a partnership we have other needs out there related to the strategy that could be fulfilled with partners that have a better, a better focus on certain areas of that. So those are the types of value-added partners that we're seeking. We want to have that accomplished in 2024. We then want to begin to commercialize in 2025, and we assume that would be some sort of a pilot launch either probably sometime in the beginning of Q1 and then go full commercial. But the overall expectation is that this will be a cash flow generator long term and whether or not that is accounted for under the equity method where it will be distributions kicked out to Samara or rather we still own the majority of it. And it's kicked out one way or the other. We want to secure those partners that will help fund this strategy to completion and not be a significant drag on a scenarios overall performance Okay, thanks, sir.

是的。因此，邁克爾，由於我們的策略，我們非常相信組織健康+沒有人能夠將全面的策略整合在一起，就像我們今天向您描述的那樣我們的總體目標是與能夠真正幫助實施該策略的合作夥伴一起為該策略提供資金，正如您所看到的，我們已經將MSO 網路作為我們工作的一部分，這不是我們想要擁有的東西。因此，這是一種夥伴關係，我們還有與策略相關的其他需求，可以透過更專注於某些領域的合作夥伴來實現。這些就是我們正在尋找的增值合作夥伴類型。我們希望在 2024 年實現這一目標。然後，我們希望在 2025 年開始商業化，我們假設這將是某種試點發布，或者可能在第一季初的某個時間，然後全面商業化。但總體預期是，從長遠來看，這將成為一個現金流發生器，無論是否按照權益法進行核算，都會將其分配給薩馬拉，或者更確切地說，我們仍然擁有其中的大部分。它以某種方式被踢出局。我們希望找到那些能夠幫助資助該策略完成的合作夥伴，而不是對場景整體表現造成重大拖累。

To clarify, you're not looking at a potential deal structures where, for example, scenario would have to fund the JV along with a partner or something like that.

需要澄清的是，您並不是在考慮潛在的交易結構，例如，場景必須與合作夥伴或類似的機構一起為合資企業提供資金。

You would definitely not cannot be safer and go out and we can we've already made lots of investment into that. So that would be our contribution into the partnership.

你絕對不會不能更安全地出去，我們可以，我們已經對此進行了大量投資。這就是我們對合作關係的貢獻。

Okay. Thanks for taking my questions.

好的。感謝您回答我的問題。

Cool.

涼爽的。

As a reminder, if you would like to ask a question, please press star one. Your next question is from Chris Palm, Paul Pines, Capital.

提醒一下，如果您想提問，請按星號一。您的下一個問題來自 Capital 的 Chris Palm、Paul Pines。

Morning, guys.

早安，夥計們。

Morning, Chris, are you

早安，克里斯，你是嗎？

that's probably a question for you on tolerate some. Could you give us maybe a little more color on two things. One, kind of the organic growth from the existing 1,000 hospitals you guys are already selling into for this year and beyond? And then also maybe a little more color on the gap that you want to close on sales with the 2000 gap and approvals and where we're selling into today?

這對你來說可能是一個關於容忍的問題。您能給我們更多關於兩件事的資訊嗎？第一，你們今年及以後已經出售的現有 1,000 家醫院的有機增長是怎樣的？然後也許還可以對您希望透過 2000 的差距和批准來縮小銷售差距以及我們今天的銷售目標進行更多的描述？

Sure. Thanks for the question. So for the 1,001 of the main things we're trying to do. There is expanded new specialties. We've done a good job, I think getting into ortho and spine and foot and ankle. Those are fairly straight line for our representatives and as well as the 1099 agents we recontract with. And I think those for those particular specialties have a great need for this type of product they're putting in fairly expensive hardware and material. And then, of course, want to make sure that the tissue closes on eventually around it. And then, of course, there's any potential problems they might have where as the wound would move forward, they could decelerate to help that wound to heal. And so we also see a big opportunity plastics in general vascular, primarily those three, but additional specialties as well, where they are really challenging patients and really challenging wounds. And we think that there's a lot of opportunity. I've seen a lot of this already where we've started to access these new specialties. So we're coming out with additional case studies. We're going to do some additional case reports where do things to really explore and exploit out those particular specialties. So they see the benefits of the product just like we've seen with with Ortho spine it and put dietary. So that's the main goals is to expand kind of horizontally in the facilities get a little deeper. We are also doing a lot of education to the clinical staff. So every surgery have scrub tech circulator. There's different types of nurses that support the case as well as nurse practitioners and first assist. And those people are really critical to the closures and in the cases as well as the postoperative care. So we've done a lot of effort just because bias there just such a great product to have handhold accelerate is really educating the one-two punch of those products and the power there. So you can prepare the wound and then you can close the wound or help biologically support the wound visit continues to healing. So that's that's really the goal with 1,000 is to continue to expand and grow around those. And some of that is just gaining more head count. We talked about account a moment ago. We're going to have to put a few people in to support larger accounts because there's just a demand. There's a lot of time associated with supporting the cases. So we can we want out of to have people in the cases at all times and really own the account. So we could have the TM model, which you may remember, that's a supportive component to the regional sales manager. So that will continue as well. And then to gain access to the additional 2000, a lot of those are just additional partners, 1099 agencies that we can contract with and access into those accounts. We've obviously gotten great data, which allows us to identify and prioritize which facilities have the most opportunity within those 2000. So you're going to target those and have our people run to those particular accounts and then identify the surgeons within as well because that data is available that really they're dealing with potential problems or patients that have high risk. That's the type of person we would, of course, want to call on and used as a champion. And that happens through a lot of different things trade shows where we're meeting and being on in front of different surgeons and meeting new distributors, but also happens through podium talks and things of that nature. And then additional papers that will have written and published. So all those things kind of helped to bring in or surround sound and create more demand in these additional accounts.

當然。謝謝你的提問。因此，對於我們正在努力做的 1,001 件主要事情。新專業不斷拓展。我認為我們在矯形、脊椎、足部和踝關節方面做得很好。對於我們的代表以及與我們重新簽訂合約的 1099 名代理商來說，這些都是相當直線的。我認為那些特定專業的人非常需要這種類型的產品，他們投入了相當昂貴的硬體和材料。然後，當然，要確保組織最終在其周圍閉合。當然，當傷口向前移動時，他們可能會遇到任何潛在的問題，他們可以減速以幫助傷口癒合。因此，我們也看到了塑膠在一般血管領域的巨大機會，主要是這三個領域，但也有其他專業領域，它們對患者和傷口確實具有挑戰性。我們認為有很多機會。在我們開始接觸這些新專業的地方，我已經看到了許多這樣的情況。因此，我們將推出更多案例研究。我們將做一些額外的案例報告，真正探索並利用這些特定的專業。因此，他們看到了該產品的好處，就像我們看到的 Ortho 脊柱和飲食一樣。因此，主要目標是在設施中橫向擴展得更深一些。我們也對臨床人員進行了大量的教育。所以每次手術都有磨砂技術循環器。有不同類型的護士以及執業護士和急救人員為案件提供支援。這些人對於關閉、病例以及術後護理確實至關重要。因此，我們做了很多努力，只是因為對這樣一款出色的產品具有手持加速功能的偏見，確實是在教育這些產品的一二擊和那裡的力量。因此，您可以準備傷口，然後可以縫合傷口或幫助從生物學上支持傷口繼續癒合。這就是 1,000 人的真正目標，就是繼續圍繞這些目標進行擴張和發展。其中一些只是增加了員工數量。我們剛才談到了帳戶。我們將不得不投入一些人來支持更大的帳戶，因為只是有需求。有很多時間用於支持案件。因此，我們可以希望始終有人在案件中並真正擁有該帳戶。因此，我們可以採用 TM 模型，您可能還記得，它是區域銷售經理的支援元件。所以這也將繼續下去。然後，為了獲得額外的 2000 個帳戶，其中許多只是額外的合作夥伴，我們可以與 1099 個機構簽訂合約並存取這些帳戶。顯然，我們已經獲得了大量數據，這使我們能夠識別並優先考慮哪些設施在這 2000 個設施中擁有最多的機會。因此，您將針對這些目標，讓我們的人員前往這些特定帳戶，然後識別其中的外科醫生，因為有數據表明他們確實正在處理潛在的問題或高風險的患者。當然，這就是我們想要召喚並用作冠軍的人。這透過許多不同的貿易展覽發生，我們在不同的外科醫生面前會面並會見新的經銷商，但也透過講台演講和類似性質的事情發生。然後是即將撰寫和發表的其他論文。因此，所有這些都有助於引入或環繞聲並在這些額外帳戶中創造更多需求。

And Chris, we are we don't actually put out a forecast or penetration into what markets we're going into. But I can tell you that the greenfield opportunities, both for the of the current thousand plus the overall approvals that we have is significant. So we see plenty of potential runway for the salaried class.

克里斯，我們實際上並沒有對我們要進入的市場進行預測或滲透。但我可以告訴你，綠地機會，無論是對於當前的千人，還是我們獲得的整體批准來說，都是巨大的。因此，我們看到勞工階級有許多潛在的發展空間。

Great. Thanks, guys.

偉大的。多謝你們。

Thank you.

謝謝。

Welcome.

歡迎。

We have reached the end of the question-and-answer session. And I will now turn the call over to management for closing remarks.

我們的問答環節已經結束。我現在將把電話轉交給管理階層進行總結發言。

Greg, you, everyone for joining our call this morning, and we greatly appreciate your support, and thank you for being patient and great long-term shareholders with us.

格雷格，你，大家今天早上加入我們的電話會議，我們非常感謝你們的支持，並感謝你們對我們的耐心和偉大的長期股東。

This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束，此時您可以掛斷電話了。感謝您的參與。