Tenon Medical Inc (TNON) 2023 Q3 法說會逐字稿

Greetings, and welcome to the Tenon Medical Third Quarter 2023 financial results and corporate update conference call. As a reminder, this call is being recorded. Your hosts today are Steven M. Foster Chief Executive Officer and President, and Steve Van Dick, Chief Financial Officer. Mr. Foster and Mr. Van Dick will present results of operations for the third quarter ended September 30, 2023 and provide a corporate update. A press release detailing these results was released today and is available on the investor relations section of the Company's website, www.tenonmed.com.

您好，歡迎參加特能醫療 2023 年第三季財務表現及公司更新電話會議。提醒一下，此通話正在錄音。今天的東道主是執行長兼總裁 Steven M. Foster 和財務長 Steve Van Dick。 Foster 先生和 Van Dick 先生將介紹截至 2023 年 9 月 30 日的第三季營運業績，並提供公司最新情況。今天發布了詳細介紹這些結果的新聞稿，可在公司網站 www.tenonmed.com 的投資者關係部分查看。

Before we begin the formal presentation, I would like to remind everyone that statements made on the call and webcast may include predictions, estimates and other information that might be considered forward-looking. While the forward-looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not to replace undue reliance on these forward-looking statements, which reflect our opinions only as of the date of this presentation. Please keep in mind that we are not obligating ourselves to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events.

在我們開始正式演示之前，我想提醒大家，電話會議和網路廣播中的陳述可能包括預測、估計和其他可能被視為前瞻性的資訊。雖然前瞻性陳述代表了我們目前對未來的判斷，但它們受到風險和不確定性的影響，可能導致實際結果出現重大差異。請注意，不要過度依賴這些前瞻性陳述，這些陳述僅反映我們截至本簡報發布之日的觀點。請記住，我們沒有義務根據新資訊或未來事件修改或公開發布這些前瞻性陳述的任何修改結果。

Throughout today's discussion, we will attempt to present some important factors relating to our business that may affect our predictions. For a more complete discussion of these factors and other risks, you should review our prospectus dated April 26, 2022, particularly under the heading Risk Factors, which is on file with the Securities and Exchange Commission at www.SEC.gov.

在今天的討論中，我們將嘗試提出一些與我們的業務相關、可能影響我們的預測的重要因素。如需對這些因素和其他風險進行更完整的討論，您應查看我們2022 年4 月26 日的招股說明書，特別是「風險因素」標題下的招股說明書，該招股說明書已在美國證券交易委員會備案，網址為www.SEC.gov。

At this time, I'll turn the call over to Tenon Medical's Chief Executive Officer, Steve Foster. Please go ahead, sir.

此時，我會將電話轉給 Tenon Medical 的執行長 Steve Foster。請繼續，先生。

Thank you, Devin, and good afternoon to everyone. I'm pleased to welcome you to today's third quarter 2023 financial results, corporate update conference call for Tenon Medical. During the third quarter, we expanded the adoption of our fully commercialized Catamaran System and experienced an increase in the number of surgical procedures in which the system was used driven largely by our multifaceted marketing strategy, including ongoing educational programs, informational materials, and interactive workshops.

謝謝你，德文，祝大家下午好。我很高興歡迎您參加今天的 Tenon Medical 2023 年第三季財務業績、公司更新電話會議。在第三季度，我們擴大了完全商業化的雙體船系統的採用，並經歷了使用該系統的外科手術數量的增加，這主要是由我們的多方面營銷策略推動的，包括持續的教育計劃、資訊材料與互動研討會。

During the third quarter, procedures supported strong revenue growth with an increase of 354% year over year and 27% sequentially from the second quarter. In the previous quarter, we marked an important milestone with gross part profit and gross profit margin turning positive. Now in the third quarter, gross profit was up 176% sequentially from the second quarter of 2023 to 535,000 and gross profit margin improved to 57% in third quarter from 26% in the second quarter of 2023.

第三季度，程式支援了強勁的營收成長，年增 354%，季增 27%。上一季度，我們實現了一個重要的里程碑，毛利和毛利率轉正。現在進入第三季度，毛利較2023年第二季成長176%至535,000，毛利率從2023年第二季的26%提高至第三季的57%。

The third quarter marked an important milestone for Tenon as we launch the surgical use of our JIB Instrument Kit for the Catamaran SI Joint Fusion System for initial patient treatment by two leading physicians in the ortho and neuro spine fields. We are encouraged by the overall positive feedback we've received from our physician customers utilizing the system as well as the encouraging early post-op results.

第三季對Tenon 來說是一個重要的里程碑，我們推出了用於雙體船SI 關節融合系統的JIB 器械套件的外科手術使用，由兩位骨科和神經脊柱領域的領先醫生對患者進行初始治療。我們從使用該系統的醫生客戶那裡收到的整體正面回饋以及令人鼓舞的早期術後結果令我們深受鼓舞。

We've developed enhanced tools for the promise to deliver upgraded graft handling, smaller access profile and enhanced access stabilization. These upgrades will assist our expansion of application into SI revision surgery, the adjunct to multilevel fusion and SI procedures utilizing navigation software in imaging. Continued strong growth and increasing surgical procedures in the third quarter was fuelled by our valued physician customers with support from our commercial infrastructure we built.

我們開發了增強型工具，承諾提供升級的移植物處理、較小的存取輪廓和增強的存取穩定性。這些升級將有助於我們將應用擴展到 SI 修復手術、多層次融合的輔助以及利用影像導航軟體進行 SI 手術。第三季的持續強勁成長和外科手術的增加是由我們尊貴的醫生客戶以及我們建立的商業基礎設施的支持所推動的。

Our mission to deliver refined surgical options for patients with chronic sacroiliac joint pain or degenerative sacralitis the fail conservative care is continuing to gain traction with targeted physicians. As a reminder, we leverage our relationships with national and local sales managers, clinical managers and independent distributors and we conduct frequent local workshop training programs to reach physicians who have been trained on SI procedures or have significant experience with SI surgical technologies.

我們的使命是為患有慢性骶髂關節疼痛或退化性骶骨炎的患者提供精緻的手術選擇，而保守治療失敗的患者正在繼續受到目標醫生的關注。謹此提醒，我們利用與國家和當地銷售經理、臨床經理和獨立分銷商的關係，並經常開展當地研討會培訓計劃，以接觸接受過 SI 手術培訓或在 SI 手術技術方面擁有豐富經驗的醫生。

We continue to focus on a combination of our local synthetic model and categoric lab workshops to introduce the Catamaran System, creating a timely and efficient process for our physician customers. We supplement these efforts with intensive clinical support and service combined these critical advantages and activities are designed to drive acceleration in the number of procedures completed with the Catamaran System.

我們繼續專注於將本地合成模型和分類實驗室研討會相結合，以引入雙體船系統，為我們的醫生客戶創建及時高效的流程。我們透過密集的臨床支援和服務來補充這些努力，結合這些關鍵優勢和活動，旨在推動雙體船系統完成的手術數量的加速。

During the third quarter, our surgical procedures increased 329% compared to the year-ago quarter, confirming a solid return on investment, our strategic approach. Our programs hosted 28 physicians and Catamaran workshops to learn more about how the implant trans fixes and stabilizes the SI joint as well as why the inferior posture approach is the optimized approach to the anatomy.

第三季度，我們的外科手術量與去年同期相比增加了 329%，證實了我們的策略方針——穩健的投資回報。我們的計畫舉辦了 28 名醫生和雙體船研討會，以了解更多關於植入物如何固定和穩定骶髂關節以及為什麼劣勢方法是解剖學的優化方法。

During the workshops, we highlight how this distinct implant system addresses a significant unmet market opportunity in design to produce broad and demonstrable advantages over market competitors. Building on the momentum of the third quarter, we expect the number of surgical procedures to continue to grow as our sales team broadens our strategic marketing, promotion and workshops featuring the Catamaran System.

在研討會期間，我們重點介紹了這種獨特的植體系統如何解決設計中未滿足的重大市場機會，從而比市場競爭對手產生廣泛且明顯的優勢。在第三季的勢頭基礎上，隨著我們的銷售團隊擴大以雙體船系統為特色的策略行銷、促銷和研討會，我們預計外科手術的數量將繼續增長。

With that, I'll turn it over to Mr. Van Dick, our Chief Financial Officer, to discuss our financials.

接下來，我將把它交給我們的財務長範迪克先生來討論我們的財務狀況。

Thank you, Steve. I'll give us a sink review of our financial results. A full breakdown is available in our press release that crossed the wire this afternoon. Our revenue was 944,000 in the third quarter of 2023, an increase of 354% compared to the 208,000 in the comparable year ago period.

謝謝你，史蒂夫。我將對我們的財務表現進行全面審查。我們今天下午發布的新聞稿中提供了完整的詳細資訊。 2023年第三季我們的營收為944,000，比去年同期的208,000成長354%。

Revenue for the nine months ended September 30, 2023, was $2.1 million, an increase of 412% compared to the 414,000 in the comparable year-ago period. The increase in revenue for the three and nine months ended September 30, 2023, as compared to the same periods in 2022 was primarily due to increases of 329% and 404%, respectively, and the number of surgical procedures in which the Catamaran System was used.

截至 2023 年 9 月 30 日的九個月營收為 210 萬美元，與去年同期的 41.4 萬美元相比成長了 412%。與 2022 年同期相比，截至 2023 年 9 月 30 日的三個月和九個月的收入增加，主要是由於雙體船系統進行的外科手術數量分別增加了 329% 和 404%。用過的。

Gross profit in the third quarter of 2023 was 535,000 or 57% of revenues compared to the gross loss at 94,000 or a negative 45% of revenues in the comparable year ago quarter. For the nine months ended September 30, 2023, gross profit was 682,000 or 32% of revenues compared to a gross loss of 434,000 or a negative 105% of revenue in the comparable year ago period.

2023 年第三季的毛利為 53.5 萬美元，佔營收的 57%，去年同期毛虧損為 9.4 萬美元，佔營收的 45%。截至 2023 年 9 月 30 日的九個月，毛利為 682,000 美元，佔營收的 32%，而去年同期的毛虧損為 434,000 美元，佔營收的 105%。

Gross margin continued to improve due to higher revenues as a result of increase in the number of surgical procedures during the quarter. Operating losses totalled $3.4 million for the third quarter of 2023 compared to a loss of $3.3 million in the third quarter of 2022. For the nine months ended September 30, 2023, operating losses totalled $12.6 million compared to a loss of $10.8 million in the comparable prior year period. The increase in operating expenses was largely due to higher sales and marketing expenses as the Company further developed its sales function, increases the frequency of marketing initiatives, and continues to enhance infrastructure to support future growth.

由於本季外科手術數量增加導致收入增加，毛利率持續改善。 2023 年第三季的營運虧損總額為340 萬美元，而2022 年第三季的虧損為330 萬美元。截至2023 年9 月30 日的九個月，營運虧損總額為1,260 萬美元，而可比同期虧損為1,080 萬美元。上一年期間。營業費用的增加主要是由於公司進一步發展其銷售職能、增加行銷活動的頻率以及繼續增強基礎設施以支持未來成長，因此銷售和行銷費用增加。

Net loss was $3.3 million for the third quarter of 2023 compared to a loss of $3.2 million in the same period of 2022. For the nine months ended September 30, 2023, net loss was $12.4 million compared to a net loss of $11 million in the comparable previous year period. We continue to expect to incur additional losses in the future.

2023 年第三季的淨虧損為330 萬美元，而2022 年同期的淨虧損為320 萬美元。截至2023 年9 月30 日的九個月，淨虧損為1,240 萬美元，而2022 年第三季度的淨虧損為1,100 萬美元。可比上年同期。我們仍然預計未來將遭受額外損失。

As of September 30, 2023, cash and cash equivalents and short-term investments totalled $3.4 million as compared to $6.3 million as of June 30, 2023. As of September 30, 2023, the Company has no outstanding debt.

截至2023年9月30日，現金及現金等價物以及短期投資總額為340萬美元，而截至2023年6月30日為630萬美元。截至2023年9月30日，本公司沒有未償債務。

I will now turn the call back to Steve for his closing thoughts.

現在我將把電話轉回給史蒂夫，聽聽他的結束語。

Thank you Steve. With the accelerating pace of the Catamaran procedures and continued expansion of our sales and marketing efforts, we are very optimistic for continued growth in the commercialization of our proprietary FDA cleared surgical implant system. We mark the third quarter with strong revenue gains and a positive growth margin and believe we can continue this growth trajectory with our expanding commercial infrastructure and seasoned sales management team.

謝謝史蒂夫。隨著雙體船手術步伐的加快以及我們銷售和行銷工作的不斷擴大，我們對 FDA 批准的專有手術植入系統的商業化持續增長感到非常樂觀。我們以強勁的收入成長和積極的利潤率標誌著第三季度，並相信我們可以透過不斷擴大的商業基礎設施和經驗豐富的銷售管理團隊來繼續這一成長軌跡。

We continue to reinforce our commitment to validating and differentiated patient outcomes in radiographic assessment with ongoing post-market clinical studies and expect to expand the application of our distinct product offering to address SI revision surgery, adjunct to multilevel fusion and SI procedures utilizing navigation, software and imaging.

我們繼續強化我們的承諾，透過正在進行的上市後臨床研究來驗證和區分放射學評估中的患者結果，並期望擴大我們獨特產品的應用，以解決SI 修復手術、多級融合輔助以及利用導航、軟體的SI 手術和影像。

We look forward to additional updates in the months to come as we continue to expand our sales infrastructure and execute on our growth objectives to improve the quality of life of patients suffering from SI joint pain and bring long-term value to our shareholders.

我們期待在未來幾個月內獲得更多更新，因為我們將繼續擴大我們的銷售基礎設施並執行我們的成長目標，以改善患有骶髂關節疼痛的患者的生活質量，並為我們的股東帶來長期價值。

I thank all of you for attending and now I'd like to hand the call over to our operator to begin our question and answer in session with our covering analysts.

我感謝大家的出席，現在我想將電話轉交給我們的接線員，以便在與我們的覆蓋分析師的會議上開始我們的問答。

Thank you. We will now be conducting a question-and-answer session.

謝謝。我們現在將進行問答環節。

(Operator instructions)

（操作員說明）

Bruce Jackson, The Benchmark Company.

布魯斯傑克遜，基準公司。

Hi, and good afternoon and congratulations on all of the progress. A couple of questions about the JIB Instrument Kit. Is this something that's being prototype right now? And what are your plans in terms of getting into a full commercial availability and are there any regulatory considerations?

大家好，下午好，恭喜所有的進展。關於 JIB 儀器套件的幾個問題。這是現在的原型嗎？你們在全面商業化方面有何計畫？是否有任何監管方面的考量？

Yeah. Hello, Bruce. This is Steve, and thanks your question. So our JIB Kit is an enhancement of our instrumentation system. We're well past the prototype phase. We've now built these technologies and put them in the hands of select physicians to make sure that we haven't missed anything that it's satisfactory to them and that it's delivering on its promises. The technology has been through all regulatory review and is cleared to go and we are now expanding the use of JIB into virtually all of our procedures from day to day.

是的。你好，布魯斯。我是史蒂夫，謝謝你的提問。因此，我們的 JIB 套件是我們儀器系統的增強版。我們已經過了原型階段。我們現在已經開發了這些技術，並將它們交給精選的醫生，以確保我們沒有錯過任何令他們滿意的事情，並且它正在兌現其承諾。該技術已通過所有監管審查並獲準使用，我們現在正在將 JIB 的使用擴展到幾乎所有的日常程序中。

We spent the month of October really making sure we like what we saw. We've done over 30 procedures with the technology, very, very encouraged about the feedback and what we're seeing there. So we're off and running now with this JIB technology.

我們花了十月份的時間來確保我們喜歡我們所看到的。我們已經使用該技術完成了 30 多個程序，我們對反饋和我們所看到的情況感到非常非常鼓舞。所以我們現在就開始使用這項 JIB 技術。

Okay and super. And then in 2023, you had a fairly favourable reimbursement climate. Are there any changes for 2024 anticipated?

好吧，超級棒。然後到了 2023 年，報銷環境相當有利。預計 2024 年會有任何變化嗎？

Yes indeed, as always, a very dynamic space in the SI world the AMA has completed their processes throughout 2023. And of course, we wait anxiously to see the final AMA CPT book usually comes out in the early December timeframe. What we understand from their recommendations and from prior meetings recommendations is that there will be a new CAT1 code introduced into the SI world coming in 2024, that new CAT1 code will be focused on facilitating reimbursement and professional fees for intra articular devices of which there are many on this market that will establish reimbursement rates, et cetera, in the 7.8 RVU range. That�s a process we've been going through to establish the quote and to establish values for that code.

是的，確實，一如既往，作為 SI 世界中一個非常活躍的空間，AMA 已在 2023 年完成了其流程。當然，我們焦急地等待著最終的 AMA CPT 書籍通常會在 12 月初出版。我們從他們的建議和先前會議的建議中了解到，將於 2024 年將新的 CAT1 代碼引入 SI 世界，該新的 CAT1 代碼將側重於促進關節內設備的報銷和專業費用，其中有這個市場上的許多公司將在7.8 RVU 範圍內制定報銷率等。這是我們為該程式碼建立報價和建立價值所經歷的過程。

We anticipate very little change for Catamaran, and that will continue to have access to the use of 27 to 79 and 27 to 80 per the physician's preference and the various situations that they see with patients. We draw that conclusion because 90%- plus of our implants to once you can plan tissues, 90%-plus of the implant is anchored in the ilium and then again in the sacrum.

我們預計雙體船的變化很小，並且根據醫生的偏好和他們在患者身上看到的各種情況，將繼續使用 27 至 79 和 27 至 80。我們得出這個結論是因為，一旦您可以規劃組織，我們的 90% 以上的植入物就會固定在髂骨中，然後再次固定在骶骨中。

So we decidedly by every definition are not an intra articular device. So that pretty much leaves 27 to 279 and 279 to 280 as the option. So it's a very dynamic spot. We don't know everything yet, but we think we have a pretty good feel for all of this is going to shake out for the coming year.

因此，從每個定義來看，我們都不是關節內裝置。因此，幾乎只剩下 27 至 279 和 279 至 280 作為選項。所以這是一個非常有活力的地方。我們還不知道一切，但我們認為我們對這一切都將在來年發生變化有很好的感覺。

Okay, great. And then a last question for me. We had a post-approval study underway. Just wanted to know if there's any update on that.

好的，太好了。然後是我的最後一個問題。我們正在進行一項批准後研究。只是想知道是否有任何更新。

Yes, it's moving along very nicely as a matter of fact. We had two patients enrolled today at a site that we're bringing online and quite excited about.

是的，事實上，一切都很順利。今天，我們有兩名患者在我們上線的網站上註冊，對此我們感到非常興奮。

I anticipate, Bruce, this is targeted. This post market trials targeted for 50 patients could be anywhere between 40 and 50, somewhere in that range when all is said and done. And we anticipate that enrolment for that trial will end here probably by the end of Q1. That would be my target at this point and at that point, we'll be seeing some media reporting on how the patients did both pre-op in the OR and immediately post-op. And then we look forward, of course, to ongoing reports as they come in for their follow-up for pain scores and ultimately a set of scans to prove radiographically that they've appropriately healed and fused. So really looking forward to that data as it rolls .

布魯斯，我預計這是有針對性的。這項針對 50 名患者的上市後試驗可能會在 40 到 50 名患者之間進行，歸根結底，就在這個範圍內。我們預計該試驗的註冊可能會在第一季末結束。這將是我此時的目標，到那時，我們將看到一些媒體報告患者在手術室中的術前和術後立即的情況。當然，我們期待持續的報告，因為他們會跟進疼痛評分，並最終進行一系列掃描，以透過放射線證明他們已經適當癒合和融合。所以真的很期待這些數據的出現。

Okay, Super. Thank you very much for taking the questions.

好的，超級。非常感謝您接受提問。

Thank you Bruce.

謝謝布魯斯。

Thank you.

謝謝。

Anthony Vendetti, Maxim Group .

安東尼文代蒂，馬克西姆集團。

Thank you. Steve, yes, so it's just a follow-up on the on the post-market study of 40 to 50 patients and expect to conclude you said by end of 1Q 2024 to signed up today. What's the total number you have signed up so far?

謝謝。史蒂夫，是的，所以這只是對 40 至 50 名患者進行的上市後研究的後續行動，預計將在 2024 年第一季末得出您所說的今天註冊的結論。到目前為止，您註冊的總數是多少？

Yeah, we're in the low 20s right now, Anthony and hello by the way. Thanks for joining us. We're in the low 20s and enrolment. We've got several patients now that are teed up for the November and December months coming up. So we really do anticipate that we'll get into that 40 to 50 range by the end of Q1 and 2024.

是的，我們現在才 20 多歲，安東尼，順便說一句，你好。感謝您加入我們。我們現在才20多歲，正在入學。我們現在有幾位患者正在為即將到來的 11 月和 12 月做好準備。因此，我們確實預計到 2024 年第一季末和 2024 年我們將進入 40 到 50 個範圍。

Okay, great. And how many sites is that at just remind me again.

好的，太好了。再次提醒我，有多少個網站。

We now have seven active sites around the country that are actively recruiting and enrolling patients.

我們現在在全國有七個活躍站點，正在積極招募和登記患者。

7% okay. And then I know you do and physician training and obviously you've some great numbers here and procedures up 329% and the third quarter. Are you ramping up the physician training ? How is that going? And what are you doing to get more physicians enrolled and aware of the Catamaran System?

7% 還可以。然後我知道你們進行了醫生培訓，顯然你們的數據和手術在第三季增加了 329%。您正在加強醫師培訓嗎？進展如何？您正在採取哪些措施來讓更多的醫生註冊並了解雙體船系統？

Yeah. This great question. So of course, we're like any other Company. We're trying to fill the funnel with opportunities, right. The only way we know how to do that is to tell our story and compel and then make the ability to take a look at the technology and do a workshop with the technology as efficient and convenient, frankly, for the physicians as possible. We've got a lot of work on a synthetic model that allows us to bring the technology to them locally.

是的。這是一個很好的問題。當然，我們和其他公司一樣。我們正在努力讓漏斗充滿機會，對吧。我們知道如何做到這一點的唯一方法是講述我們的故事並迫使他們有能力了解這項技術，坦白說，為醫生提供盡可能高效和方便的技術研討會。我們在合成模型上做了很多工作，使我們能夠將技術帶給他們本地。

So you don't have to wait and travel on a Saturday or something like that to a lab. And, you know, in a city where they have to fly and things of that nature. So we're accelerating by making it convenient and efficient. And of course, it's the engine that sort of fills our funnel and gets us moving towards adoption and eventual use of the technology. We're encouraged by what we see look I'll stress we target very, very carefully.

因此，您不必等待並在周六或類似的時間前往實驗室。而且，你知道，在一個他們必須飛行和類似性質的城市。因此，我們正在透過使其變得方便和高效來加速。當然，它是填補我們漏斗的引擎，讓我們朝著採用和最終使用該技術的方向前進。我們對所看到的情況感到鼓舞，我要強調的是，我們非常非常謹慎地瞄準目標。

And so our objective isn't to see how many people we can train. Our objective is to target really well so that when we train someone, it's worth their time and that's worth our time and investment, and that's how we choose to go about our business every day.

因此，我們的目標不是看看我們可以培訓多少人。我們的目標是設定非常好的目標，這樣當我們培訓某人時，他們的時間是值得的，我們的時間和投資也值得，這就是我們選擇每天開展業務的方式。

That's great. Just in terms of vetting them and figuring out, which orthopaedic surgeons you work with -- maybe just a little more color on how that process goes. Is it referrals from KOLs ? How do you vet the orthopaedic surgeons to make sure that they're the right ones to train and work with.

那太棒了。只是在審查他們並弄清楚與你一起工作的整形外科醫生方面——也許只是對這個過程的進行方式有更多的了解。是KO​​L推薦嗎？您如何審查骨科醫生以確保他們是接受培訓和合作的合適人選。

Yeah, certainly what you say are our key opinion leaders have a lot to do with. Sort of vetting if you will who we invite into training sessions. What we look at, Anthony is the experience they have with SI technologies. The pelvis is of interesting environment to image. If the physician has experienced imaging the pelvis and placing implants there, et cetera, they're way ahead of the game as it relates to being comfortable in their learning curve and what have you to adopt a technology like this.

是的，當然你說的這些與我們的關鍵意見領袖有很大關係。如果您願意，我們會邀請誰參加培訓課程，這是一種審查。我們關注的是安東尼在 SI 技術方面的經驗。骨盆是個值得想像的有趣環境。如果醫生有骨盆成像和在那裡放置植入物等方面的經驗，那麼他們就遙遙領先，因為這關係到他們的學習曲線是否舒適以及您需要採用這樣的技術。

So their experience with SI technologies in the past training sessions. They've been involved in a tender. It tells us the story about how things would go for us in a training session. And so we do we target folks who have been down through that pathway were comfortable with the imaging, who have these experiences in their background and frankly have developed a referral networks and what have you to have SI as part of their practice when we establish those things, this becomes a target that's meaningful for us and gives us energy on that specific target.

他們在過去的培訓課程中獲得了 SI 技術的經驗。他們參與了招標。它告訴我們在培訓課程中事情會如何發展的故事。因此，我們的目標人群是那些經歷過這條道路、對成像感到滿意的人，他們在背景中擁有這些經驗，坦率地說，他們已經建立了一個推薦網絡，當我們建立這些網絡時，你需要將SI 作為他們實踐的一部分嗎？事情，這成為對我們有意義的目標，並為我們提供實現該特定目標的能量。

Great. And then maybe just one financial question. So gross margin came in significantly better then, then I was expecting at 56.7%. Anything that you would attribute that to that strong gross margin for this quarter? And is that sustainable or to fluctuate a little bit here in the near term? Thanks.

偉大的。然後也許只是一個財務問題。因此，毛利率明顯優於我的預期，為 56.7%。您是否會將其歸因於本季強勁的毛利率？這種情況是可持續的還是短期內會略有波動？謝謝。

Anthony, this is Steve. Yeah, I think we do believe that the gross margin is sustainable. I mean, it is -- it's tied to our growth in revenue. I think like we mentioned earlier, having mentioned earlier, but what I normally refer people to a good portion of our cost of goods sold is either fixed or semi-fixed.

安東尼，這是史蒂夫。是的，我認為我們確實相信毛利率是可持續的。我的意思是，它與我們的收入成長息息相關。我認為就像我們之前提到的那樣，但我通常會向人們介紹我們銷售商品成本的很大一部分是固定或半固定的。

And so the incremental increase in revenue, we have good leverage to increase that margin percent as revenue grows because the amount of incremental costs associated with another extra procedure are enough additional procedures is right now a small piece of our cost of goods sold versus the overhead and facility costs that we -- that we currently have. So I think we are really happy with where the margins came in, and we do expect that they will be able to continue to grow as revenue grows.

因此，隨著收入的成長，我們有很好的槓桿作用來增加利潤率，因為與另一個額外程序相關的增量成本已經足夠了，與管理費用相比，額外程序現在只占我們銷售商品成本的一小部分以及我們目前擁有的設施成本。因此，我認為我們對利潤率的情況非常滿意，我們確實預計利潤率將能夠隨著收入的增長而繼續增長。

Okay. Great. Excellent. Thanks, guys. I'll hop back in the queue.

好的。偉大的。出色的。多謝你們。我會跳回到隊列中。

Thank you. There are no further questions at this time. I'd like to turn the floor back over to Mr. Foster for closing comments.

謝謝。目前沒有其他問題。我想請福斯特先生發表最後評論。

Well, thank you, Devin. And I'd like to thank each of you for joining our earnings conference call today and look forward to continuing to update you on our ongoing progress and growth. If we were unable to answer any of your questions, please reach out to our IR firm and G Group, who would be more than happy to assist. With that, I wish everybody a good evening.

好吧，謝謝你，德文。我要感謝你們今天參加我們的收益電話會議，並期待繼續向你們通報我們持續取得的進展和增長的最新情況。如果我們無法回答您的任何問題，請聯絡我們的投資者關係公司和 G Group，他們將非常樂意為您提供協助。在此，我祝大家有個美好的夜晚。

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation and have a wonderful day.

今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與，祝您有美好的一天。