Sanara Medtech Inc (SMTI) 2024 Q2 法說會逐字稿

Greetings, welcome to the Sanara MedTech Inc.'s second-quarter results and business updates. (Operator Instructions) Please note this conference is being recorded.

您好，歡迎閱讀 Sanara MedTech Inc. 第二季業績和業務更新。（操作員說明）請注意，本次會議正在錄製中。

I will now turn the conference over to your host, Callon Nichols, Director of Investor Relations at Sanara MedTech. Callon, you may begin.

我現在將會議交給主持人、Sanara MedTech 投資者關係總監 Callon Nichols。卡倫，你可以開始了。

Thank you and good morning, everyone. I'd like to welcome you to Sanara MedTech's earnings conference call for the quarter ended June 30, 2024. We issued our earnings release yesterday morning and I would like to highlight that we have posted today's deck on the investor relations page of our website. This supplemental deck, as well as a copy of the earnings release, and the Form 10-Q for the quarter ended June 30, 2024, are also available on this page. We will reference this information in our remarks today.

謝謝大家，早安。歡迎您參加 Sanara MedTech 截至 2024 年 6 月 30 日的季度財報電話會議。我們昨天早上發布了收益報告，我想強調的是，我們已經在我們網站的投資者關係頁面上發布了今天的收益報告。此補充資料以及收益發布的副本以及截至 2024 年 6 月 30 日的季度的 10-Q 表格也可在此頁面上取得。我們將在今天的演講中引用這些資訊。

With us today are Ron Nixon, our Executive Chairman and CEO; Mike McNeil, our Chief Financial Officer; Seth Yon, our President of Commercial; Jake Waldrop, our Chief Operating Officer; and Sam Muppalla who leads Tissue Health Plus.

今天與我們在一起的有我們的執行主席兼執行長 Ron Nixon；麥克‧麥克尼爾，我們的財務長； Seth Yon，我們的商務總裁；傑克‧沃德羅普 (Jake Waldrop)，我們的營運長；以及領導 Tissue Health Plus 的 Sam Muppalla。

Please note that certain statements in this conference call and 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 factor set forth in our most recent Annual Report on Form 10-K, as supplemented by the risk factors in our most recent quarterly report on Form 10-Q.

請注意，本次電話會議、我們的新聞稿以及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，請參閱我們最新的表10 年度報告中列出的風險因素-K，由我們最新的 10-Q 表季度報告中的風險因素進行補充。

Also, this conference call, our earnings release and our supplemental deck reference certain non-GAAP measures. In that regard, I direct you to the reconciliation of these measures and the earnings materials that are available on our website.

此外，本次電話會議、我們的收益發布和我們的補充資料參考了某些非公認會計原則措施。在這方面，我將指導您對這些措施和我們網站上提供的收益資料進行核對。

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

現在我想把電話轉給羅恩。

Thank you, Callon and good morning everyone. During the second quarter of 2024, the company generated $20.2 million in revenue. This is our 11th consecutive record revenue quarter. I'd like to take a moment to recognize our entire team, including surgical sales, clinical R&D, customer service, marketing and finance, who continue to do an outstanding job contributing to our record growth strategy.

謝謝你，卡倫，大家早安。2024 年第二季度，該公司營收 2,020 萬美元。這是我們連續第 11 個季度營收創紀錄。我想花一點時間來表彰我們的整個團隊，包括手術銷售、臨床研發、客戶服務、行銷和財務，他們繼續出色地工作，為我們創紀錄的成長策略做出了貢獻。

In the second quarter, Sanara generated a net loss of $3.5 million and positive adjusted EBITDA of $600,000. The adjusted EBITDA is net of expenses that we view as noncore in our operations, including $900,000 of separation costs related to our former CEO, as well as $400,000 in legal and diligence expenses for prospective acquisitions and partnerships. Prior period have been recast in our earnings press release to reflect this change in how we calculate adjusted EBITDA.

第二季度，Sanara 淨虧損 350 萬美元，調整後 EBITDA 為 60 萬美元。調整後的 EBITDA 扣除了我們認為非核心業務的費用，包括與我們前執行長相關的 90 萬美元的離職成本，以及用於潛在收購和合作夥伴關係的 40 萬美元的法律和盡職調查費用。我們的收益新聞稿中對上一期進行了重新調整，以反映我們計算調整後 EBITDA 方式的變化。

Mike will go into this in more detail, but in Q2 we began reporting additional financial performance metrics of our Surgical business and Tissue Health Plus segment as separate segments that we could account for. Following the recent change in our CEO position, this transition to segment reporting better aligns with how I view the business. Our Surgical segment generated a $2.2 million net loss in the second quarter and a $2.7 million net loss in the first half of 2024.

麥克將更詳細地討論這一點，但在第二季度，我們開始報告我們的外科業務和組織健康附加部門的額外財務績效指標，作為我們可以解釋的單獨部門。隨著最近執行長職位的變動，向細分報告的轉變更符合我對業務的看法。我們的外科部門在第二季產生 220 萬美元的淨虧損，在 2024 年上半年產生 270 萬美元的淨虧損。

On a segmented EBITDA basis, the Surgical segment generated $1.4 million and $2.5 million of segmented EBITDA during the second quarter and first half of 2024, respectively. We continue to see strong growth opportunities for both segments, which Seth and Sam will continue -- will discuss in further detail shortly.

以分段 EBITDA 計算，外科部門在 2024 年第二季和上半年分別產生了 140 萬美元和 250 萬美元的分段 EBITDA。我們繼續看到這兩個細分市場的強勁成長機會，塞思和薩姆將繼續下去，很快將進一步詳細討論。

During the second half of 2024, we expect to invest an additional $4 million to $5 million to build out the THP strategy in anticipation of a commercial launch in the second half of 2025, which Sam will detail later in the presentation.

在 2024 年下半年，我們預計將額外投資 400 萬至 500 萬美元來製定 THP 策略，預計在 2025 年下半年進行商業發布，Sam 將在稍後的演示中詳細介紹這一點。

I will now turn it over to Seth to discuss our Surgical business results and momentum in that segment.

我現在將把它交給賽斯討論我們的外科業務成果和該領域的勢頭。

Thanks Ron. As of the end of the second quarter, our products have been sold in over 1100 hospitals and ASCs across 34 States and the District of Columbia in the trailing 12 months and were approved to be sold in more than 4,000 facilities in total. We currently have selling agreements with over 300 distributors representing 2,500 plus potential sellers.

謝謝羅恩。截至第二季末，過去 12 個月內，我們的產品已在 34 個州和哥倫比亞特區的 1,100 多家醫院和 ASC 銷售，並總共被批准在 4,000 多家機構銷售。目前，我們與 300 多家經銷商簽訂了銷售協議，代表著 2,500 多名潛在賣家。

Looking at the growth of the territories and facilities in which we sell, in Q2 our products were sold into over 800 facilities compared to over 600 facilities in the second quarter of 2023. Sales of our soft tissue products grew from $13.2 million in the second quarter of 2023 to $17.6 million in the second quarter of 2024. Sales of bone fusion products were flat at $2.5 million for the same quarter-over-quarter period in 2023.

從我們銷售的地區和設施的成長來看，我們的產品在第二季度銷往 800 多個設施，而 2023 年第二季為 600 多個設施。我們的軟組織產品銷售額從 2023 年第二季的 1,320 萬美元成長到 2024 年第二季的 1,760 萬美元。2023 年同期骨融合產品銷售額持平於 250 萬美元。

I'd now like to discuss some of the key opportunities for growth that we believe will continue to drive our future performance. In the second quarter, we signed a contract with a national GPO that added over 1,000 facilities where our products are contracted or approved to be sold. Our team is working to generate sales in those new facilities, while also working to further penetrate the existing facilities where our products are sold.

我現在想討論一些關鍵的成長機會，我們相信這些機會將繼續推動我們未來的表現。第二季度，我們與國家 GPO 簽訂了合同，增加了 1,000 多個簽約或批准銷售我們產品的設施。我們的團隊正在努力在這些新設施中創造銷售，同時也努力進一步滲透到銷售我們產品的現有設施中。

As we have discussed before, we are also focused on expanding usage outside of our traditional specialty focus in ortho and spine. We see a significant use case and value proposition in the trauma, vascular and general surgery markets and are working diligently to expand into our use products into those areas.

正如我們之前所討論的，我們也致力於在傳統的骨科和脊椎專業領域之外擴大使用範圍。我們在創傷、血管和普通外科市場中看到了重要的用例和價值主張，並正在努力將我們的使用產品擴展到這些領域。

In addition to our organic growth, we are regularly evaluating opportunities for surgical M&A and partnership opportunities. Our management team sees synergistic potential transactions as a key growth driver that complements our strong organic growth strategy.

除了我們的有機成長之外，我們還定期評估外科併購和合作機會的機會。我們的管理團隊將協同潛在交易視為關鍵的成長動力，並補充了我們強大的有機成長策略。

I'd now like to introduce Jake Waldrop, our new COO, to give a brief overview of some of the key initiatives he's been working on since joining us in April.

現在我想介紹一下我們的新任營運長傑克·沃德羅普 (Jake Waldrop)，他簡要概述了他自 4 月加入我們以來一直致力於開展的一些關鍵舉措。

Thank you, Seth, and good morning, everyone. The key focus of our operations team has been to centralize ownership and accountability across all aspects of our customer support, product fulfillment and underlying IT system infrastructure. This strategy includes building out an IT roadmap focus on workflow, automation and digital support for our next phase of growth.

謝謝你，賽斯，大家早安。我們營運團隊的重點是將客戶支援、產品履行和底層 IT 系統基礎設施各個方面的所有權和責任集中起來。該策略包括為我們下一階段的成長制定重點關注工作流程、自動化和數位支援的 IT 路線圖。

On the sales operations side, we're implementing plans to efficiently scale our customer service team and simplify the selling process for both internal and external sales representatives. With significant growth experienced by the company, Sanara is working to separate and streamline its shipping and fulfillment operations to allow customer service to focus on best-in-class sales support. Our supply chain is also a key part of this strategy, and we have reorganized our supply chain function to facilitate smooth and consistent operations across each of our product lines.

在銷售營運方面，我們正在實施計劃，以有效地擴大我們的客戶服務團隊並簡化內部和外部銷售代表的銷售流程。隨著公司的顯著成長，Sanara 正在努力分離和簡化其運輸和履行業務，以便客戶服務專注於一流的銷售支援。我們的供應鏈也是這項策略的關鍵部分，我們重組了我們的供應鏈職能，以促進我們每個產品線的順利和一致的營運。

With that I will now turn it over to Sam to discuss more on our plans of tissue health plus.

現在，我將把它交給 Sam，並更多地討論我們的組織健康計劃。

Thank you, Jake. Good morning, everybody. As we discussed before, nonsurgical wound care is ripe for disruption. By nonsurgical wound care, we are referring to the wound care spend outside of surgical settings. This expenditure of roughly $100 million per year in the US includes treatment services, corresponding medtech products, and enabling diagnostic tools. Despite this large spend, the wound healing rate is estimated to be only 40% to 66% and the five-year mortality rate for a diabetic foot ulcer is 30%, roughly the same as cancer.

謝謝你，傑克。大家早安。正如我們之前討論的，非手術傷口護理的顛覆時機已經成熟。透過非手術傷口護理，我們指的是手術環境以外的傷口護理支出。美國每年約 1 億美元的支出包括治療服務、相應的醫療科技產品和輔助診斷工具。儘管花費龐大，但傷口癒合率估計僅為 40% 至 66%，糖尿病足潰瘍的五年死亡率為 30%，與癌症大致相同。

Moreover, 15% of the population over the age of 65 has a chronic non-healing wound. $69 million of this expenditure occurs in hospital, the hospital inpatient or hospital adjacent wound centers, which is the highest cost setting. $35 million is estimated to be either preventable or overuse. THP is targeting this under managed expenditure with the goal of generating hospital based savings for payers and other risk bearing entities.

此外，15%的65歲以上人口患有慢性不癒合傷口。其中 6,900 萬美元發生在醫院、醫院住院部或醫院鄰近的傷口中心，這是成本最高的環境。據估計，有 3500 萬美元是可以預防的或過度使用的。THP 的目標是管理支出，為付款人和其他風險承擔實體節省醫院費用。

We plan to orchestrate the delivery of high-touch, comprehensive wound care at home and in community settings such as physician offices and skilled nursing homes. Our program aligns payers, patients and providers to deliver compelling value. THP's value based program is built on a science-driven first of its kind care model that integrates prevention, treatment and maintenance of wounds.

我們計劃在家庭和社區環境（如醫生辦公室和熟練的療養院）精心安排提供高接觸性、全面的傷口護理。我們的計劃使付款人、患者和提供者保持一致，以提供令人信服的價值。THP 的價值計劃建立在科學驅動的首創護理模式之上，將傷口的預防、治療和維護融為一體。

A THP patient's journey starts with a targeted outreach from an assigned care navigator from our Virtual Care Coordination Center, the Care Hub. From that point on, our care navigator will be a consistent guide for all their wound care needs. THP care navigators will leverage a unique mix of education, engagement and transparency to increase patients care plan adherence.

THP 患者的旅程從我們的虛擬護理協調中心（護理中心）指定的護理導航員的有針對性的外展開始。從那時起，我們的護理導航器將成為滿足他們所有傷口護理需求的一致指南。THP 護理導航員將利用教育、參與和透明度的獨特組合來提高患者護理計劃的遵守率。

Our value proposition to patients is simple, prevent wounds at least 25%, detect them early, and improve the healing rates to 90%. An open third-party network will largely be our boots on the ground implementing our care interventions. We expect that THP's state-of-the-art wound assessment software-as-a-service medical device, along with the groundbreaking real time EMR-integrated clinical decision support, will enable our network partners to deliver transformative wound care.

我們對患者的價值主張很簡單，預防至少 25% 的傷口，及早發現傷口，並將癒合率提高到 90%。開放的第三方網路將在很大程度上成為我們在實地實施護理幹預措施的靴子。我們期望 THP 最先進的傷口評估軟體即服務醫療設備，以及突破性的即時 EMR 整合臨床決策支持，將使我們的網路合作夥伴能夠提供變革性的傷口護理。

We plan to enable higher EBITDA patient encounter revenue for our network partners along with enabling new revenue streams such as patient monitoring. Lastly, we expect our payer customers will benefit from the accrual of THP generated savings in the range to 2x to 5x of THP fees, while alleviating a major quality of life issue for their members. We are currently focused on finishing the build phase and plan to launch a pilot in the first quarter of 2025.

我們計劃為我們的網路合作夥伴提供更高的 EBITDA 患者就診收入，同時實現病患監護等新的收入來源。最後，我們預計我們的付款客戶將從 THP 的累積中受益，節省 THP 費用的 2 至 5 倍，同時減輕其會員的主要生活品質問題。我們目前的重點是完成建造階段，並計劃在 2025 年第一季啟動試點。

Based on comparable specialty VBC programs and the industry spend in wound care, the scope of THP's contract for one single citywide market is likely to be in multiple millions. We are also exploring selecting strategic supply partnerships to derisk execution.

根據可比較的專業 VBC 計畫和產業在傷口護理方面的支出，THP 針對一個全市市場的合約範圍可能達數百萬美元。我們也正在探索選擇策略供應合作夥伴以降低執行風險。

I would now like to turn over to Mike to discuss our financial results in more detail.

我現在想請麥克更詳細地討論我們的財務表現。

Thank you, Sam. During the second quarter, Sanara generated net revenue of $20.2 million compared to $15.8 million during the second quarter of 2023, a 28% increase over the prior year period. The higher revenue in Q2 was primarily due to increased sales of soft tissue repair products, including CellerateRX as a result of our increased market penetration, geographic expansion, and our continuing strategy to expand our distribution network in both new and existing US markets.

謝謝你，山姆。Sanara 第二季淨收入為 2,020 萬美元，而 2023 年第二季淨收入為 1,580 萬美元，比去年同期成長 28%。第二季收入的增加主要是由於軟組織修復產品（包括CellerateRX）銷售的增加，這是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擴大分銷網絡的持續戰略所致。

SG&A expenses for the second quarter were $19 million compared to $13.8 million for the same period in 2023. SG&A expenses included $0.6 million and $0.5 million attributable to our Tissue Health Plus segment for the quarters ended June 30, 2024 and 2023, respectively. The higher SG&A expenses in Q2 of 2024 were primarily due to higher direct sales and marketing expenses, which accounted for approximately $3.4 million of the increase compared to prior year.

第二季的銷售、管理及行政費用為 1,900 萬美元，而 2023 年同期為 1,380 萬美元。截至 2024 年 6 月 30 日和 2023 年 6 月 30 日的季度，SG&A 費用包括歸屬於 Tissue Health Plus 部門的 60 萬美元和 50 萬美元。2024 年第二季 SG&A 費用增加主要是由於直接銷售和行銷費用增加，與去年相比增加了約 340 萬美元。

SG&A expenses during the second quarter of 2024 also included $0.9 million of executive separation costs and $0.4 million of legal and diligence expenses related to prospective acquisitions and partnerships.

2024 年第二季的銷售、管理和行政費用還包括 90 萬美元的高階主管離職成本以及 40 萬美元與潛在收購和合作夥伴關係相關的法律和盡職調查費用。

R&D expenses for the three months ended June 30, 2024 were $1 million, compared to $1.2 million during the same period in 2023. R&D expenses included $0.4 million and $1.0 million attributed to our Tissue Health Plus segment for the quarters ended June 30, 2024 and 2023, respectively. The lower R&D expenses in 2024 were primarily due to lower costs associated with the Precision Healing diagnostic imager and LFA.

截至 2024 年 6 月 30 日止三個月的研發費用為 100 萬美元，而 2023 年同期為 120 萬美元。截至 2024 年 6 月 30 日及 2023 年 6 月 30 日的季度，研發費用分別為 40 萬美元及 100 萬美元，歸屬於 Tissue Health Plus 部門。2024 年研發費用降低主要是因為與 Precision Healing 診斷影像儀和 LFA 相關的成本降低。

Depreciation and amortization expenses for the quarter ended June 30, 2024 were $1.1 million compared to $0.8 million for the same period in 2023. The higher depreciation and amortization expenses in 2024 were due to amortization of the tangible assets acquired from Applied Nutritionals in August of 2023.

截至 2024 年 6 月 30 日的季度的折舊和攤銷費用為 110 萬美元，而 2023 年同期為 80 萬美元。2024 年折舊和攤銷費用較高是由於 2023 年 8 月從 Applied Nutritionals 收購的有形資產的攤銷。

Interest expense was $0.6 million for the quarter ended June 30, compared to zero in 2023. The higher interest expense in 2024 was primarily related to our new term loan with CRG. Sanara had a net loss of $3.5 million for the second quarter of 2024 compared to a net loss of $1.9 million for the same period in 2023. The net loss included $1.3 million and $2.0 million attributable to our Tissue Health Plus segment for the quarters ended June 30, 2024 and 2023, respectively.

截至 6 月 30 日的季度利息支出為 60 萬美元，而 2023 年為零。2024 年利息支出較高主要與我們向 CRG 提供的新定期貸款有關。Sanara 2024 年第二季淨虧損 350 萬美元，而 2023 年同期淨虧損 190 萬美元。淨虧損包括截至 2024 年 6 月 30 日和 2023 年 6 月 30 日止季度的 Tissue Health Plus 部門的 130 萬美元和 200 萬美元。

The higher net loss for the second quarter of 2024 was primarily due to higher SG&A cost, higher interest expense related to our new CRG term loan, lower change in fair value of earn out liabilities, and higher amortization of our acquired intangible assets, partially offset by higher gross profit and R&D expenses. Our cash balance at the end of the quarter was $6.2 million.

2024 年第二季淨虧損較高，主要是由於SG&A 成本較高、與我們的新CRG 定期貸款相關的利息費用較高、盈餘負債公允價值變化較低以及我們收購的無形資產攤銷較高，部分抵銷了較高的毛利和研發費用。本季末我們的現金餘額為 620 萬美元。

As Ron mentioned earlier, in order to better inform the investor community of our strategic rationale of the acute and post-acute comprehensive strategy investments, we will be breaking out the financial results of our two operating segments, Sanara Surgical and Tissue Health Plus. Net of expenses we believe to be noncore to our operations. We generated consolidated adjusted EBITDA of $0.6 million and $0.9 million during the three and six months into June 30, respectively.

正如 Ron 先前提到的，為了讓投資者更了解我們急性和急性後綜合策略投資的策略原理，我們將公佈 Sanara Surgical 和 Tissue Health Plus 這兩個業務部門的財務表現。扣除我們認為非核心業務的費用。截至 6 月 30 日的三個月和六個月內，我們的綜合調整後 EBITDA 分別為 60 萬美元和 90 萬美元。

Our Sanara Surgical segment generated positive segment EBITDA of $1.4 million during the second quarter of 2024 and $2.5 million during the six months into June 30, 2024. Tissue Health Plus generated negative segment EBITDA of $0.8 million during Q2 and negative $1.6 million during the six months into June 30, 2024.

我們的 Sanara Surgical 部門在 2024 年第二季度產生了 140 萬美元的正分部 EBITDA，在截至 2024 年 6 月 30 日的六個月內產生了 250 萬美元的正分部 EBITDA。Tissue Health Plus 在第二季產生了 80 萬美元的負分部 EBITDA，在截至 2024 年 6 月 30 日的六個月內產生了 160 萬美元的負分部 EBITDA。

All corporate and overhead expenses are included in the Sanara Surgical segment as substantially all these costs relate to supporting the operations and activities of the Surgical segment. Sanara Surgical also includes our in-house research and development team, Rochal Technologies. As Ron mentioned earlier, we plan to invest another $4 million to $5 million to further the Tissue Health Plus strategy during the second half of 2024.

所有公司和管理費用均包含在 Sanara 外科部門中，因為基本上所有這些成本都與支援外科部門的營運和活動有關。Sanara Surgical 還包括我們的內部研發團隊 Rochal Technologies。正如 Ron 先前所提到的，我們計劃在 2024 年下半年再投資 400 萬至 500 萬美元，以推進 Tissue Health Plus 策略。

As we discussed in our last call, we closed a new $55 million debt facility with CRG during the second quarter. This transaction helped us strengthen our cash position and provided access to capital in a way that was non-dilutive to equity holders. The term loan is structured as a senior secured loan with a five-year term. In addition to the $15 million drawn at close, we may draw an additional $39.8 million before June 30, 2025. This facility provides us access to capital for accretive transactions and general working capital purposes.

正如我們在上次電話會議中討論的那樣，我們在第二季度與 CRG 完成了一項新的 5500 萬美元債務融資。這項交易幫助我們增強了現金狀況，並以不稀釋股東權益的方式提供了獲得資本的途徑。定期貸款的結構為優先擔保貸款，期限為五年。除了交易結束時提取的 1,500 萬美元外，我們還可能在 2025 年 6 月 30 日之前額外提取 3,980 萬美元。該設施為我們提供了用於增值交易和一般營運資金用途的資金。

I will now turn it over to Ron for closing comments.

我現在將把它交給羅恩以供結束評論。

Thanks Mike. We continue to execute on our strategy both in Surgical and post-acute wound care value-based strategy. Our surgical team is generating positive adjusted EBITDA, and we expect to see continued improvement in operating results while executing on the growth plan and market expansion.

謝謝邁克。我們繼續執行我們的外科策略和急性傷口護理基於價值的策略。我們的外科團隊正在產生積極的調整後 EBITDA，我們預計在執行成長計畫和市場擴張的同時，經營績效將持續改善。

As discussed, we see a significant opportunity to disrupt the post-acute wound care market with our value based strategy and anticipate a 2025 commercial launch.

正如所討論的，我們看到了透過我們基於價值的策略來擾亂急性後傷口護理市場的重大機會，並預計在 2025 年進行商業推出。

Operator, I'd now like to open the line for questions.

接線員，我現在想開通提問線路。

(Operator Instructions) Ross Osborn, Cantor Fitzgerald.

（操作員指示）羅斯·奧斯本、坎托·菲茨杰拉德。

Hey, guys, congrats on another record quarter. Thanks for taking our questions. So, starting off, there's been a lot of disruption in the chronic wound space with regards to reimbursement, causing some confusion and thoughts on the market broadly? And could you provide some more color on the diagnostic front of THP, especially given that I believe you're targeting the home care space?

嘿，夥計們，恭喜又一個創紀錄的季度。感謝您回答我們的問題。那麼，從一開始，慢性傷口領域在報銷方面就出現了很多混亂，在市場上引起了一些混亂和思考？您能否在 THP 的診斷方面提供更多信息，特別是考慮到您的目標是家庭護理領域？

Yes, Ross, this is Ron and I'm assuming that you're talking about the disruption is around the CTPs and the use of CTPs and the fact that the number of those are not being reimbursed today. But for the broader question, I'm going to turn it over to Sam and Sam, if you want to address that that would be great.

是的，羅斯，我是羅恩，我假設您正在談論圍繞 CTP 和 CTP 的使用造成的中斷，以及今天未償還這些數量的事實。但對於更廣泛的問題，我會把它交給 Sam 和 Sam，如果你想解決這個問題那就太好了。

Thank you, Ron. In terms of the disruption in the chronic wound care space, especially the CTP, that is something we are factoring into our strategy. As we discussed before, our strategy is to generate savings and mostly hospital based savings and the direction CMS and the payers are moving in is very congruent with where we're going.

謝謝你，羅恩。就慢性傷口護理領域（尤其是 CTP）的顛覆而言，這是我們將其納入策略的因素。正如我們之前討論的，我們的策略是產生節省，主要是醫院的節省，CMS 和付款人的方向與我們的方向非常一致。

In terms of the diagnostic device one of the key things which we looked at when we were putting together the THP strategy was how do you make these diagnostic devices scalable in cost and also something which can be used across multiple settings and multiple levels of clinicians. So as we come out with that, you will see that that's the key aim we have actually achieved.

就診斷設備而言，我們在製定 THP 策略時考慮的關鍵問題之一是如何使這些診斷設備的成本可擴展，並且可以在多種環境和多個級別的臨床醫生中使用。因此，當我們提出這一點時，您會發現這是我們實際實現的主要目標。

Okay, got it. And then switching to your partnership with Tufts, any color you can provide on the corporation timeline of the peptides of CellerateRX?

好的，明白了。然後轉向與塔夫茨大學的合作關係，您可以在 CellerateRX 勝肽的公司時間表上提供任何顏色嗎？

We've got several various activities going on right now with that, with the 18 peptides that you're referring to. We're obviously not going to take on all to 18 at one time, but we have taken on and are selecting certain ones that you'll be hearing more about in the near-term, Ross.

我們現在正在針對您提到的 18 種勝肽進行多項不同的活動。顯然，我們不會一次性接受全部 18 名選手，但我們已經接受並正在選擇某些人，羅斯，您將在近期聽到更多關於這些人的消息。

Okay, great. And then lastly, could you walk through the game plan for targeting your new adjacent markets you called out such as trauma, just the key steps there to driving adoption? Do you need to generate more data? Is it more such as a factor of knocking on doors? Any color would be helpful. Thank you.

好的，太好了。最後，您能否詳細介紹一下針對您所說的新的相鄰市場的遊戲計劃，例如創傷，以及推動採用的關鍵步驟？您需要產生更多數據嗎？它更像是敲門的因素嗎？任何顏色都會有幫助。謝謝。

Yes Seth, would you mind taking that please?

是的，塞斯，你介意接受這個嗎？

Sure. We'll continue to expand with the right distribution partners in those spaces as well alongside of even looking at other partnership opportunities as well to expand into those unique specialties, so that will be a focus. In addition to that, we've also hired some specialists as well that are focused specifically into the bone space as well and we think that that can be a great compliment to get into some of those additional specialties.

當然。我們將繼續在這些領域與合適的分銷合作夥伴一起擴展，甚至尋找其他合作機會以及擴展到這些獨特的專業領域，因此這將成為焦點。除此之外，我們還聘請了一些專門研究骨骼空間的專家，我們認為這對於進入其中一些額外的專業領域來說是一個很好的讚美。

Okay, great. Thanks for taking our questions. Congrats again on another strong quarter.

好的，太好了。感謝您回答我們的問題。再次恭喜又一個強勁的季度。

Yes. Thank you, Ross.

是的。謝謝你，羅斯。

[Chris Plum], Turbines Capital.

[克里斯普拉姆]，渦輪資本。

Two questions. One, with the new GPO deal, does that cause a shift in strategy to go after the 3,000 approved that aren't sold into? And then also if we can get a little more color update on BIASURGE progress since launch?

兩個問題。第一，新的 GPO 協議是否會導致策略轉變，以追隨 3,000 個已獲批准但未售出的產品？然後，我們能否獲得有關 BIASURGE 自推出以來的進展的更多顏色更新？

Yes. Seth, why don't you take both of those if you would, please?

是的。賽斯，如果你願意的話，為什麼不把這兩樣都拿走呢？

Yes. We'll continue to look to expand both at a local level and a national level to gain access into these facilities so that progress won't change. That approach won't change for us as far as having access at both the local IDN level and also at a national GPO level. We've done that with great success, which obviously allows us a faster track to success, but also the attraction that it brings to great distribution partners, that's a wonderful thing for us as well. So that's one.

是的。我們將繼續尋求在地方層級和國家層級擴大規模，以獲取這些設施的使用權，這樣進展就不會改變。只要我們能夠在本地 IDN 級別和國家 GPO 級別進行訪問，這種方法就不會改變。我們已經做到了這一點並取得了巨大成功，這顯然使我們能夠更快地走向成功，而且它也為優秀的分銷合作夥伴帶來了吸引力，這對我們來說也是一件很棒的事情。這就是其中之一。

The second question, again, was specific to what? Could you ask that again?

第二個問題又是針對什麼？你能再問一次嗎？

To BIASURGE, just how that's going, BIASURGE?

BIASURGE，情況怎麼樣，BIASURGE？

Sure. Sure. We had a soft launch of BIASURGE in the late fourth quarter of 2023. It's really started to pick up and carry some momentum, not only on a contracting side, but again, as a sales organization we're looking at that as a facility level conversation, not just a surgeon level conversation.

當然。當然。我們於 2023 年第四季末試行推出 BIASURGE。它確實開始復甦並帶來一些動力，不僅在合約方面，而且作為一個銷售組織，我們將其視為設施層級的對話，而不僅僅是外科醫生層級的對話。

But we're really happy with the progress being made specifically through the second quarter, with the growth of that product as well. It's fit nicely into a top six product for us already and its overall performance, and again, really happy with the progress that's being made with that product.

但我們對第二季的進展以及該產品的成長感到非常滿意。它已經很好地融入了我們的前六名產品及其整體性能，並且再次對該產品所取得的進展感到非常滿意。

Seth, why don't you tell Chris a little bit about the feedback also from the surgeons that have used it?

塞斯，你為什麼不告訴克里斯一些使用過它的外科醫生的回饋呢？

Yes. All the way around we've reached a number of different specialties, and again, I think that's another piece that's complementary to us reaching into other specialties. Every single surgeon that's into the OR is using some type of wash, and that allows us to expand into the trauma and the general and plastic spaces as such as well. But we've had wonderful feedback from everything from orthopedics into spine, vascular, general in a very early window, and really satisfied and happy with again the progress that's being made there in multiple specialties with that product.

是的。一路走來，我們已經達到了許多不同的專業，而且，我認為這是另一個我們進入其他專業的補充。每位進入手術室的外科醫生都在使用某種類型的清洗，這使我們能夠擴展到創傷、一般空間和整形空間等。但我們在很早的時間裡就從骨科到脊椎、血管、普通科等各個領域都得到了很好的回饋，並且對該產品在多個專業領域所取得的進展再次感到非常滿意和高興。

Great. Thanks guys.

偉大的。謝謝你們。

Thank you, Chris.

謝謝你，克里斯。

(Operator Instructions) Ian Cassel, MicroCapClub.

（操作員說明）Ian Cassel，MicroCapClub。

Hey, thanks for bringing the whole team on. This is very beneficial. My first question maybe is relating to what Seth answered a few questions ago. I was curious if there's any color into why the bone fusion products specifically seem to, their growth has been stagnating in the last couple of quarters?

嘿，謝謝你讓整個團隊都來了。這是非常有益的。我的第一個問題可能與賽斯之前回答的幾個問題有關。我很好奇是否有任何原因可以解釋為什麼骨融合產品在過去幾季中的成長一直停滯不前？

Yes, Seth?

是的，賽斯？

Sure, I can answer that as well. So I would say this, part of that is an approval process, one where maybe the access for products like CellerateRX and FORTIFY and such have a little bit greater opportunity based upon the number of approvals. One of the ways that we're tackling not only that is at a national level and local, but we just recently, in the last 90 days, we've hired a few bone specialists as well that will be in different markets to help build that out in addition to the regional managers and distributors that we have today.

當然，我也可以回答這個問題。所以我想說，其中一部分是審批流程，根據審批數量，可能會獲得 CellerateRX 和 FORTIFY 等產品的更多機會。我們解決這個問題的方法之一不僅是在國家層面和地方層面，而且就在最近，在過去 90 天內，我們還聘請了一些骨骼專家，他們將在不同的市場幫助建立除了我們今天擁有的區域經理和分銷商之外。

We think that's a great complement to that space into those markets and should start to see a rise coming out of it as a result of people being hyper focused into that bone space. Whereas you can see from our performance, the performance has really been focused into that soft tissue space. So we think this is a great one to punch for us in the second half of the year.

我們認為，這是對這些市場的一個很好的補充，並且由於人們高度關注這個骨骼空間，因此應該開始看到它的成長。然而你可以從我們的表現中看到，表現確實集中在軟組織空間。所以我們認為這對我們下半年來說是一個很好的機會。

Thanks, I appreciate that. And my next question would be for Sam, what are the key areas you need to solidify to get ready for that Tissue Health Plus pilot in Q1 of 2025?

謝謝，我很感激。我的下一個問題是問 Sam，您需要鞏固哪些關鍵領域，才能為 2025 年第一季的 Tissue Health Plus 試點做好準備？

Thank you, Ian. In terms of the key areas, there are three. The first is, we are finishing the build out of our technology platform. The second is, we are finishing off the build out of our economic model and validating that both from economics, which we are putting in front of payers as well as our network partners. The third piece is really preparing education and onboarding assets for both onboarding our staff as well as our network partners.

謝謝你，伊恩。從重點領域來看，有以下三個面向。首先，我們正在完成技術平台的建置。第二是，我們正在完成經濟模型的構建，並從經濟學角度驗證這一點，我們將其放在付款人和我們的網路合作夥伴面前。第三部分是為我們的員工和網路合作夥伴準備教育和入職資產。

Thank you. And maybe the last one for you, Ron. I appreciate you breaking apart in the segmented financials so we can see what Tissue Health Plus is doing versus Surgical. What is preventing you from being more profitable in Surgical at your current run rate

謝謝。也許是給你的最後一個，羅恩。我很感謝您對財務狀況進行細分，以便我們可以了解 Tissue Health Plus 與 Surgical 的對比情況。是什麼阻礙您以當前的運行速度在外科領域獲得更多利潤

Yes, that's a good question. So Ian, quite frankly, we set out from the very beginning with the launch of CellerateRX and then beyond adding additional products. We want to be a complete portfolio of products to be able to support the surgeons for ancillary products that can help them in their surgery, so protect their work, make their work better and we've done that successfully by adding our BIASURGE to that along with CellerateRX and our other products, both soft tissue and bone. But we're not stopping there.

是的，這是一個好問題。因此，Ian 坦白說，我們從一開始就推出了 CellerateRX，然後再添加其他產品。我們希望成為一個完整的產品組合，能夠為外科醫生提供輔助產品，幫助他們進行手術，從而保護他們的工作，使他們的工作更好，我們通過添加 BIASURGE 成功地做到了這一點與CellerateRX 和我們的其他產品（軟組織和骨骼）一起使用。但我們不會就此止步。

We're going to continue, as Seth talked about, the three new areas that we want to go after related to vascular and plastics in general and they may have different needs for us. And we're constantly looking for what else we can either acquire or partner with others. And because of doing that and knowing where we want to go and how we want to get there through either these partnerships or acquisitions, we want to continue to build our infrastructure to support this organization.

正如賽斯所說，我們將繼續關注與血管和塑膠相關的三個新領域，它們可能對我們有不同的需求。我們一直在尋找我們可以收購或與他人合作的其他東西。因為這樣做並知道我們想要去哪裡以及我們想要如何透過這些合作夥伴關係或收購來實現這一目標，所以我們希望繼續建立我們的基礎設施來支持這個組織。

You heard -- so I wanted Jake on the call today. Jake came aboard and he's helping us to increase our efficiencies across everywhere, make sure that we can support a high growth organization, and we're not interested in slowing down our growth to maximize profitability today. We believe we can maximize profitability as we move into the future just by getting fixed cost leverage as we continue to add more and more to what we're doing today. So hope that answers your question, but that's a game plan, and that's where we're headed. And we've got a keen eye on a plan to profitability, increased profitability from where we are today.

你聽到了——所以我今天想讓傑克接電話。傑克加入後，他正在幫助我們提高各地的效率，確保我們能夠支持一個高成長的組織，並且我們對放慢成長速度以最大限度地提高獲利能力不感興趣。我們相信，隨著我們繼續在今天所做的事情上增加越來越多的內容，透過獲得固定成本槓桿，我們可以在進入未來時最大化盈利能力。希望這能回答您的問題，但這只是一個遊戲計劃，這就是我們的前進方向。我們非常關注獲利計劃，從目前的情況來看，要提高獲利能力。

Hey, maybe one last one to tag onto that. It does look like your growth rate really bounced back from late last year or middle of last year, which is good to see. Was there anything one-time, one-time stocking order here in Q2 that made it more robust than it would have been under a normal sales cadence?

嘿，也許是最後一個標記。看起來你的成長率確實從去年年底或去年中期開始反彈，這是很好的結果。第二季是否有任何一次性庫存訂單使其比正常銷售節奏下更加強勁？

I don't believe so. Mike?

我不相信是這樣。麥克風？

Yes, I can answer that as well. We had really steady incremental growth throughout the entire quarter. It wasn't a shot in the arm type of order or big stocking orders or things like that, that inflated the number. That did not occur in the second quarter and I'm really happy from April and the growth inside of April to May and it just continued to climb. So I would say that the progress was really, really strong overall, and it wasn't a result of just a one-time order.

是的，我也可以回答這個問題。我們在整個季度都實現了真正穩定的增量成長。這並不是一劑強心劑類型的訂單或大額庫存訂單或類似的事情，導致了這個數字的膨脹。第二季並沒有發生這種情況，我對四月以及四月到五月的成長感到非常高興，而且它還在繼續攀升。所以我想說，總體而言，進展確實非常強勁，而且這不僅僅是一次性訂單的結果。

Yes. And I think I misunderstood your question, Ian. Sorry about that.

是的。我想我誤解了你的問題，伊恩。對此感到抱歉。

That's okay. Thanks. I appreciate it.

沒關係。謝謝。我很感激。

John Siedhoff, Twin Oaks Equity LLC.

約翰‧西德霍夫 (John Siedhoff)，雙橡樹股權有限責任公司。

Thanks. Ron and Mike, congratulations guys on the continued growth. I mean, that's to be an $80 million run rate is fantastic. You guys have done a great job over the last five years, congratulations.

謝謝。羅恩和麥克，祝賀你們的持續成長。我的意思是，8000 萬美元的運行率太棒了。你們在過去五年做得很好，恭喜你們。

Thank you, John.

謝謝你，約翰。

Thank you. Of course, Ian had a great question about the -- we all know how much it costs to grow a company and the cash that you need for that. And I see that you've gotten a new facility, and I certainly like that because you can't run out of money. Ron, do you foresee when is there, like a certain number that you're -- I know that you always have a focus on where you want to be and the growth. When do you see a breakeven or do you see that you're going to continue to burn some cash as you grow because it takes money to grow?

謝謝。當然，伊恩有一個很好的問題——我們都知道發展一家公司需要多少成本以及所需的現金。我看到你們已經有了一個新設施，我當然喜歡這樣，因為你不能用完錢。羅恩，你是否預見到什麼時候會出現，就像你所在的某個數字一樣——我知道你總是專注於你想要達到的目標和成長。你什麼時候會看到損益平衡，或是你會發現隨著你的成長，你會繼續消耗一些現金，因為成長需要錢？

Well, the separation of Tissue Health Plus ultimately, which we've talked about that we're going to -- that we've always wanted to seek other partners that can help us in the success of Tissue Health Plus. And as we continue to move to that, and Tissue Health Plus crosses that profitability threshold, which we believe if it launches in 2025, it will be very early it will have a very early success once the contracts are awarded.

好吧，最終我們已經討論過 Tissue Health Plus 的分離，我們一直希望尋找其他合作夥伴來幫助我們 Tissue Health Plus 取得成功。隨著我們繼續朝著這個目標邁進，Tissue Health Plus 已經跨越了盈利門檻，我們相信，如果它在 2025 年推出，那麼一旦授予合同，它就會很快取得成功。

And so once that happens, then Surgery by itself stands on its own and is going to be, it is just fine from a profitability standpoint. We know we've got great margins. We've got great momentum in the sales effort. We continue to expand. We just built our infrastructure around it. And then you'll start to see what I think will be significant leverage off of our SG&A.

因此，一旦發生這種情況，那麼從獲利角度來看，手術本身就可以獨立存在，並且將會是這樣。我們知道我們有很大的利潤。我們的銷售工作勢頭強勁。我們繼續擴張。我們只是圍繞它構建了我們的基礎設施。然後你會開始看到我認為對我們的銷售及管理費用（SG&A）有很大的影響力。

And I would certainly agree with you there. You've got to get to enough force going forward. Do you see this negative cash burn? The cash burn is as a reason for what I think is a depressed stock price.

我當然同意你的觀點。你必須獲得足夠的力量才能前進。您看到這種負現金消耗嗎？我認為現金消耗是股價低迷的一個原因。

I don't actually. The stock market always confuses me. I never understand it. So I really can't speak to that quite frankly. All I know is I've not sold a share of stock, nor have most of our directors and we all believe in growing and we believe that this is going to be a very successful company. So we are enjoying the ride and we're going to just continue to go forward, John.

我其實不這麼認為。股市總是讓我困惑。我一直不明白。所以我真的不能坦白說。我所知道的是，我沒有出售任何股票，我們的大多數董事也沒有出售，我們都相信成長，我們相信這將是一家非常成功的公司。所以我們很享受這段旅程，我們將繼續前進，約翰。

Well, neither have I. I just wanted to get yours and Mike's take on that and see how we're doing for the investors and I appreciate the growth that you guys are continuing to show us out there in the market. I appreciate it, guys. Thank you.

嗯，我也沒有。 我只是想聽聽你們和麥克的看法，看看我們為投資者做了什麼，我很欣賞你們在市場上繼續向我們展示的成長。我很感激，夥計們。謝謝。

Thank you, John.

謝謝你，約翰。

Thank you. There are no other questions in queue at this time. I would now like to hand the call back to Ron Nixon for closing remarks.

謝謝。目前隊列中沒有其他問題。現在我想將電話轉回給羅恩·尼克松，讓其致閉幕詞。

I just want to thank all our shareholders that attended the call today and all the ones that will read about it and we just thank you for all your support. Thank you for hanging in there. We believe in our future. We're very excited about where we're going and how we're going to get there and we continue to build a team that's, I think, best-in-class and I feel very, very proud of that. And so thank you all for attending today, and we'll talk to you soon.

我只想感謝今天參加電話會議的所有股東以及所有閱讀相關內容的股東，我們只是感謝你們的支持。謝謝你堅持在那裡。我們相信我們的未來。我們對我們的目標以及如何實現目標感到非常興奮，我們將繼續打造一支我認為是一流的團隊，我對此感到非常非常自豪。感謝大家今天參加，我們很快就會與你們交談。

Thank you. This does conclude today's conference. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的會議到此結束。此時您可以斷開線路。感謝您的參與。