Tenon Medical Inc (TNON) 2024 Q2 法說會逐字稿

Greetings, and welcome to the Tenon Medical's second quarter 2024 financial results and corporate update conference call. As a reminder, this call is being recorded. Your host today are Steve Foster, President and Chief Executive Officer; and Steve Van Dick, CFO Adviser.

您好，歡迎參加特農醫療 2024 年第二季財務表現及公司更新電話會議。謹此提醒，此通話正在錄音中。今天的主持人是總裁兼執行長 Steve Foster；和財務長顧問史蒂夫範迪克。

Mr. Foster and Mr. Van Dick will present results of operations for the second quarter ended June 30, 2024, and provide a corporate update. A press release detailing these results was released today and is available on the Investor Relations section of our company website at www.tenonmed.com.

Foster 先生和 Van Dick 先生將介紹截至 2024 年 6 月 30 日的第二季營運業績，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，可在我們公司網站 www.tenonmed.com 的投資者關係部分取得。

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.

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。

While these forward-looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that would cause actual results to differ materially. You are cautioned not to place undue reliance on these forward-looking statements, which reflect our opinions only as of the date of this presentation.

雖然這些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。請您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。

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. Throughout today's discussion, we will attempt to present some important factors relating to our business that may affect our predictions.

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。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。

For a more complete discussion of these factors and other risks, you should review our Annual Report on 10-K dated March 29, 2024, particularly under the heading Risk Factors, which is on file with the Securities and Exchange Commission at www.sec.gov.

如需對這些因素和其他風險進行更完整的討論，您應該查看我們2024 年3 月29 日發布的10-K 年度報告，特別是「風險因素」標題下的報告，該報告已在美國證券交易委員會備案，網址為www.sec。

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

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

Thank you, Maria. And good afternoon to everyone. I'm pleased to welcome you to today's second quarter 2024 financial results and corporate update conference call for Tenon Medical. In the second quarter, we continued to focus on building market share for our proprietary Catamaran System, supported by our recently restructured operational sales and marketing strategy. We are pleased with the sustained revenue growth and full-year milestone of generating positive gross profit as we successfully resourced all of our US sales regions.

謝謝你，瑪麗亞。大家下午好。我很高興歡迎您參加今天的 Tenon Medical 2024 年第二季財務業績和公司更新電話會議。在第二季度，在我們最近重組的營運銷售和行銷策略的支持下，我們繼續專注於建立我們專有的雙體船系統的市場份額。我們對持續的收入成長和實現正毛利的全年里程碑感到高興，因為我們成功地為所有美國銷售地區提供了資源。

We delivered a 21% year-over-year increase in revenue, driven by a 7% rise in surgical procedures utilizing the Catamaran System. Gross profit of $470,000, expanded 142% as compared to the prior year quarter and generated solid gross margin of 52%. With sustainable revenue growth, we believe our stable cost structure will maintain a gross margin performance at recent levels and improve with increases in revenue.

由於利用雙體船系統的外科手術數量增加了 7%，我們的收入年增了 21%。毛利為 47 萬美元，較去年同期成長 142%，毛利率穩定達 52%。隨著收入的持續增長，我們相信穩定的成本結構將維持近期水準的毛利率表現，並隨著收入的增加而改善。

Across operations, we've made considerable commercialization and technical advances and remain on the right path during our second year of commercialization. To provide an update on our restructured sales organization, during Q2, we have reached our 2024 full-year target of sales operations in five geographic regions. With additional operational team members assigned across our now-full geographic reach, we are poised for future growth.

在整個營運過程中，我們已經取得了相當大的商業化和技術進步，並且在商業化的第二年仍然走在正確的道路上。為了提供我們重組銷售組織的最新信息，在第二季度，我們在五個地理區域實現了 2024 年全年銷售業務目標。隨著我們在目前的整個地理範圍內分配更多的營運團隊成員，我們已為未來的成長做好了準備。

A significant component of our growth strategy is the investment in clinical research to reinforce the safety and effectiveness of the Catamaran System. Significant progress has been made in this area. For those new to Tenon, this prospective multicenter, single-arm post-market study evaluates the clinical outcomes of patients with sacroiliac joints disruptions or degenerative sacroiliitis treated with the Catamaran SI Joint Fusion System. Patients will be evaluated for a period of up to 24 months, reviewing various patient-reported outcomes, radiographic assessments and adverse events.

我們成長策略的一個重要組成部分是對臨床研究的投資，以加強雙體船系統的安全性和有效性。該領域已取得重大進展。對於剛接觸 Tenon 的人來說，這項前瞻性多中心、單臂上市後研究評估了使用 Catamaran SI 關節融合系統治療的骶髂關節破壞或退化性骶髂關節炎患者的臨床結果。患者將接受長達 24 個月的評估，審查患者報告的各種結果、放射學評估和不良事件。

In short, this study aims to show the Catamaran System delivers on its promises. As we near completion of enrollment in this study, we have been notified that publication of our interim analysis is now imminent. This peer-reviewed analysis reinforces that the Catamaran System, utilizing a minimally invasive Inferior-Posterior approach is safe and effective in relieving pain and reducing disability in adult patients diagnosed with SIJ disruption or degenerative sacroiliitis that failed non-surgical treatment.

簡而言之，這項研究旨在表明雙體船系統兌現了其承諾。當我們接近完成這項研究的註冊時，我們被通知即將發布我們的中期分析。這項經過同行評審的分析強調，採用微創後下入路的雙體船系統對於緩解非手術治療失敗的 SIJ 破壞或退化性骶髂關節炎成年患者的疼痛和減少殘疾是安全有效的。

We look forward to sharing specific details when publication is complete in the very near future. This early validation provides conviction that the Catamaran transfixing design and less invasive Inferior-Posterior approach is functioning as intended to optimize patient outcomes through short-term stabilization of the joint and long-term infusion.

我們期待在不久的將來出版完成後分享具體細節。這項早期驗證使人們相信，雙體船貫穿固定設計和侵入性較小的下後入路正在發揮作用，透過關節的短期穩定和長期輸注來優化患者的治療結果。

Of note, the interim data from our study, combined with the over 600 surgeries performed with the Catamaran System to date is demonstrating an exceptional safety profile, benefiting patients and their physicians alike in delivering on its clinical promises.

值得注意的是，我們研究的中期數據，加上迄今為止使用雙體船系統進行的 600 多次手術，證明了其卓越的安全性，有利於患者及其醫生兌現其臨床承諾。

Our ongoing workshop activities led by a network of valued physician faculty combined with the robust commercial infrastructure rebuild have us prepared for rapid expansion. Our goal is to ensure we are precise in the selection of medical professionals with experience in SI surgical technologies and to provide them with world-class workshop opportunities.

我們正在進行的研討會活動由有價值的醫師網絡領導，加上強大的商業基礎設施重建，使我們為快速擴張做好了準備。我們的目標是確保準確選擇具有 SI 外科技術經驗的醫療專業人員，並為他們提供世界一流的研討會機會。

Importantly, this is a proven approach that contains cost and provides higher return value to patients, the cohort of physicians and Tenon's business overall. We experienced an increase in our interactive training, corresponding with our restructured marketing and sales approach and hosted 36 physicians in Catamaran workshops during the second quarter of 2024.

重要的是，這是一種經過驗證的方法，可以控製成本，並為患者、醫生群體和 Tenon 的整體業務提供更高的回報價值。我們的互動培訓有所增加，這與我們重組的營銷和銷售方法相一致，並在 2024 年第二季度在雙體船研討會上接待了 36 名醫生。

As clinical data builds from our post-market study, validating the effectiveness of our SI implant and approach, our sales and marketing activities will become more robust and drive our ongoing targeted physician workshop activities.

隨著我們的上市後研究建立臨床數據，驗證我們的SI 植入物和方法的有效性，我們的銷售和行銷活動將變得更加強勁，並推動我們正在進行的有針對性的醫師研討會活動。

With that, I'll turn it over to Mr. Van Dick, our CFO Adviser, to discuss our financials.

接下來，我將把它交給我們的財務長顧問範迪克先生來討論我們的財務狀況。

Thanks, Steve. I'll give succinct view of our financial results. A full breakdown is available in our press release across the wire this afternoon. Our revenue was $901,000 in the second quarter of 2024, an increase of 21% compared to $743,000 in a comparable year ago period.

謝謝，史蒂夫。我將簡要介紹我們的財務業績。我們今天下午透過新聞稿發布了完整的詳細資訊。2024 年第二季我們的營收為 901,000 美元，比去年同期的 743,000 美元成長 21%。

Revenue for the six months ended June 30, 2024, was $1.6 million, an increase of 38% compared to $1.2 million in the six months ended June 30, 2023. The increase in revenue for the three and six months ended June 30, 2024, as compared to the same period in '23, was primarily due to increases of 7% and 19%, respectively, in the number of surgical procedures in which the Catamaran System was used.

截至2024年6月30日止六個月的營收為160萬美元，較截至2023年6月30日止六個月的120萬美元成長38%。與 2023 年同期相比，截至 2024 年 6 月 30 日的三個月和六個月的收入增加，主要是由於雙體船的外科手術數量分別增加了 7% 和 19%使用了系統。

Gross profit in the second quarter of 2024 was $470,000 or 52% of revenues, compared to $194,000 or 26% of revenues in the comparable year ago quarter. For the six months ended June 30, gross profit was $940,000 or 58% of revenues, compared to the gross profit of $147,000 or 13% of revenue for the previous year's period.

2024 年第二季的毛利為 47 萬美元，佔營收的 52%，去年同期為 19.4 萬美元，佔營收的 26%。截至 6 月 30 日的六個月，毛利為 940,000 美元，佔收入的 58%，而去年同期的毛利為 147,000 美元，佔收入的 13%。

Importantly, we have seen gross margins steadily improve due to the revenue growth associated with an increase in the number of surgical procedures, which resulted in a sustainable operating leverage due to lower relative fixed costs and the absorption of more overhead into our standard cost. Operating expenses totaled $4.3 million in the second quarter of 2024, largely in line with the expenses of $4.5 million in the second quarter of 2023.

重要的是，由於外科手術數量的增加帶來了收入成長，我們看到毛利率穩步提高，由於相對固定成本降低以及標準成本吸收了更多管理費用，從而實現了可持續的營運槓桿。2024 年第二季營運費用總計 430 萬美元，與 2023 年第二季 450 萬美元的費用基本持平。

For the six months ended June 30, '24, Operating expenses totaled $8.3 million compared to $9.4 million in the prior period. Decreases in operating expenses were a primary result of the decline in research and development expenses and sales and marketing expenses, offset by increase in general and administrative expenses, net loss of $3.8 million for the second quarter of '24, compared to a loss of $4.3 million in the same period in '23.

截至 2024 年 6 月 30 日的六個月，營運費用總計 830 萬美元，而上一期間為 940 萬美元。營運費用的減少主要是由於研發費用以及銷售和行銷費用的減少，被一般和管理費用的增加所抵消，2024 年第二季度的淨虧損為 380 萬美元，而去年同期的虧損為 4.3 美元23 年同期為100 萬。

For the six months ended June 30, '24, net loss was $7.4 million compared to $9.1 million in the previous year period. The company expects to incur additional losses in the future. As of June 30, '24, cash and cash equivalents totaled $2 million as compared to $2.4 million as of December 31, 2023. As of June 30, 2024, the company had no outstanding debt.

截至 2024 年 6 月 30 日的六個月，淨虧損為 740 萬美元，而去年同期為 910 萬美元。該公司預計未來將遭受額外損失。截至 24 年 6 月 30 日，現金及現金等價物總額為 200 萬美元，而截至 2023 年 12 月 31 日為 240 萬美元。截至2024年6月30日，本公司無未償還債務。

Lastly, beginning with our third quarter in 2024 earnings call in November, Jay Hanson, our Interim Principal Accounting Officer will join Steve to deliver the -- will join me to deliver the financial results during the earnings call. Additionally, Jay will join today's question-and-answer session following Steve's closing remarks.

最後，從 11 月的 2024 年第三季財報電話會議開始，我們的臨時首席會計官 Jay Hanson 將與 Steve 一起發布財報電話會議期間的財務業績。此外，傑伊將在史蒂夫致閉幕詞後參加今天的問答環節。

I will now turn the call back to Steve.

我現在將把電話轉回給史蒂夫。

Thank you Steve. As we continue to drive momentum in the market, represented by year-over-year increases in our Catamaran procedures, we are regionally prioritizing the scale of the commercialization strategy of our proprietary FDA-cleared surgical implant system.

謝謝史蒂夫。隨著我們繼續推動市場發展勢頭，以雙體船手術的逐年增長為代表，我們正在區域優先考慮經 FDA 批准的專有手術植入系統的商業化戰略規模。

While the commercialization strategy was reorganized during the first half of 2024, we ended the second quarter with year-over-year revenue growth and an attractive gross margin. We believe the upcoming larger cohort of patient post-market data will be a catalyst to drive growth and adoption in the second half of 2024, supported by the expanded penetration of our commercial infrastructure and seasoned sales management team.

雖然商業化策略在 2024 年上半年進行了重組，但我們在第二季結束時實現了同比收入成長和有吸引力的毛利率。我們相信，在我們商業基礎設施滲透率擴大和經驗豐富的銷售管理團隊的支持下，即將到來的更大規模的患者上市後數據將成為推動 2024 年下半年成長和採用的催化劑。

Lastly, on behalf of our Board of Directors and the entire Tenon Medical team, we wish Steve Van Dick the best in his retirement. Steve's financial expertise and leadership has set Tenon up for long-term strategic growth and expansion. Mr. Van Dick will remain with Tenon as a CFO Adviser, while we continue our executive search process for a permanent CFO. In short, Steve will be missed.

最後，我們代表我們的董事會和整個 Tenon Medical 團隊祝福 Steve Van Dick 退休後一切順利。Steve 的財務專業知識和領導能力為 Tenon 的長期策略成長和擴張奠定了基礎。範迪克先生將繼續留在 Tenon 擔任財務長顧問，同時我們將繼續尋找永久財務長的高階主管搜尋流程。簡而言之，人們會懷念史蒂夫。

I thank you all for attending. And now I'd like to hand the call back over to our operator to begin the question-and-answer session with our covering analysts. Maria?

我感謝大家的出席。現在我想將電話轉回給我們的接線員，以開始與我們的分析師進行問答。瑪麗亞？

(Operator Instructions)

（操作員說明）

Bruce Jackson, The Benchmark Company.

布魯斯傑克遜，基準公司。

Hi. Good afternoon and thanks for taking my questions. I wanted to ask about the publication of the study results. Is this going to be the same six patients that we saw the early data on previously? Or will this be a slightly larger group of patients?

你好。下午好，感謝您提出我的問題。我想問一下研究結果的發表情形。這是否是我們之前看到的早期數據中的六名患者？或者這會是一個稍微大一點的患者群嗎？

Yeah. Thanks, Bruce, and good to hear from you. So this will be a larger group of patients. This is an interim analysis to the degree that we've cleared 33 enrolled patients. And of course, those patients are all at different time points. Some were very recent. Some have been 12 months or more post-op.

是的。謝謝，布魯斯，很高興收到你的來信。所以這將是一個更大的患者群體。這是一項中期分析，我們已經清除了 33 名入組患者。當然，這些患者都處於不同的時間點。有些是最近的。有些已經是術後 12 個月或更久了。

And so what this interim analysis will do is document the progress that we've made on all the things that we're measuring, everything from adverse events to patient outcomes and feedback and things of that nature. Not to mention everything that happens in the operating room, how long the procedure took, blood loss, all the details of a study like this. So this interim analysis will cover those 33 patients. And as -- and just to remind, this is a up to 50-patient trial. So it's a significant portion of the full enrollment.

因此，這個中期分析要做的是記錄我們在我們正在測量的所有事情上取得的進展，從不良事件到患者結果和回饋以及類似性質的事情。更不用說手術室裡發生的一切，手術需要多長時間，失血量，諸如此類的研究的所有細節。因此，本中期分析將涵蓋這 33 名患者。順便提醒一下，這是一項最多 50 名患者參與的試驗。因此，它佔全部入學人數的很大一部分。

Okay. And then is the study fully enrolled yet? And is this the type of study where we're going to keep getting a larger and larger patient base, and we're going to be getting a stream of publications over the next couple of years?

好的。那麼這項研究是否已全部入組？這種研究類型是不是我們將不斷獲得越來越多的患者基礎，並且我們將在未來幾年內獲得一系列出版物？

Yeah. That's exactly right. This is the first formal publication from the study, Bruce, and it's in every way, an interim analysis. As we proceed and as we get to bigger and bigger numbers that are hitting 6 months, 12 months, these critical milestones and we follow-up patients up to 24 months in the study and its protocol, we'll continue to provide updates and publications to support for obvious reasons. We're trying to drive a statistical and clear message about the capabilities of this technology.

是的。完全正確。布魯斯，這是該研究的第一份正式出版物，從各個方面來說，它都是中期分析。隨著我們的進展，隨著我們的數據越來越多，達到6 個月、12 個月這些關鍵里程碑，我們在研究及其方案中對患者進行長達24 個月的隨訪，我們將繼續提供更新和出版物出於明顯的原因而支持。我們正在努力推動有關該技術功能的統計和明確資訊。

So that's what we're doing here. So the answer is yes. You'll see a cadence, if you will, of publications and updates from -- as the data is gathered and tabulated, et cetera, as part of the study. You asked about enrollment. Enrollments are virtually finished. We have maybe a couple, three more patients to go here, and we'll be closing enrollment officially. So very close to wrapping up the front end of the enrollment.

這就是我們在這裡所做的。所以答案是肯定的。如果您願意的話，您會看到出版物和更新的節奏——作為研究的一部分，收集數據並製成表格等。你問的是入學的事。報名工作已基本完成。我們可能還有一對、三名患者要來這裡，我們將正式結束招生。招生工作即將結束。

Okay. Great. And then just a clarification question on the definition of normalized surgical procedures. Is this like a same-store sales type of measure? Or is it like a -- just tell me what's -- how that's defined?

好的。偉大的。然後是關於規範化外科手術定義的澄清問題。這是否類似同店銷售類型的衡量標準？或者它就像 - 只要告訴我是什麼 - 它是如何定義的？

Yes. That's exactly right. What we're doing is assessing total surgical procedures. And of course, everything with revenue fluctuates based on average selling price and things of that nature. So that's what we're referring to there is the number of procedures that have actually been done.

是的。完全正確。我們正在做的是評估整個外科手術。當然，所有有收入的東西都會根據平均售價和類似性質的東西而波動。這就是我們所說的實際已完成的程序數量。

Okay, great. Congratulations on all of the progress.

好的，太好了。祝賀所有的進展。

Thank you, Bruce. Appreciate it.

謝謝你，布魯斯。欣賞它。

Anthony Vendetti, Maxim Group.

安東尼文代蒂，馬克西姆集團。

Thank you. Steve, I was wondering if you could just talk about the physician workshops. How many were hosted this past quarter? What's the expectation for the rest of this year? Just a little color on that would be great.

謝謝。史蒂夫，我想知道你是否可以談談醫生研討會。上個季度舉辦了多少場活動？對今年剩餘時間的期望是什麼？只需一點點顏色就可以了。

Thanks, Anthony. Appreciate the question. So we hosted 36 sessions in Q2 and that was a significant increase over Q1. As mentioned in the prepared statements, we did restructure our selling organization, some of the positions in our organization in Q1. And so we had a slower Q1.

謝謝，安東尼。感謝這個問題。因此，我們在第二季舉辦了 36 場會議，比第一季顯著增加。正如準備好的聲明中所提到的，我們確實在第一季重組了我們的銷售組織，以及我們組織中的一些職位。所以我們第一季的速度較慢。

We expanded that pretty dramatically in Q2 almost to an all-time high. And we expect that to continue as we onboard these professionals. They go through their training and they're ready to go out and get after it in their assigned geography. So that will continue to grow.

我們在第二季大幅擴張，幾乎達到歷史最高水準。我們希望隨著這些專業人員的加入，這種情況能夠持續下去。他們完成了培訓，準備好出去在指定的地區追求目標。因此，這一數字將持續成長。

And as we've talked about before, this is our mechanism to fill a proverbial funnel, if you will, with opportunities to show the technology, to train, put the physicians in a great workshop environment with faculty. So they can get their questions answered, get comfortable with the technology.

正如我們之前談到的，如果你願意的話，這是我們填補眾所周知的漏斗的機制，有機會展示技術，進行培訓，將醫生置於一個與教師一起的良好車間環境中。這樣他們的問題就能得到解答，熟悉這項技術。

And of course, we hope that a large percentage of them will adopt the technology and begin using it in their clinical practice. So critical for us to train effectively to execute these workshops effectively. And we think that's not only happening but expanding very quickly now with our new team.

當然，我們希望他們中的很大一部分人會採用該技術並開始在臨床實踐中使用它。對我們來說，有效地培訓以有效地執行這些研討會至關重要。我們認為，這不僅正在發生，而且現在我們的新團隊正在迅速擴張。

That's great to hear. Maybe just a little more color. So once they obviously complete these workshops, the hope is that they adopt the Catamaran System and the technology going forward. Do most of them or some of them act as references for other physicians? Are they willing to act as, let's say, KOLs or how can you best utilize their experience once they attend the workshop?

很高興聽到這個消息。也許只是多一點顏色。因此，一旦他們顯然完成了這些研討會，他們就希望能夠採用雙體船系統和未來的技術。其中大部分或部分內容是否可以為其他醫生提供參考？他們是否願意充當 KOL，或者一旦他們參加研討會，您如何才能最好地利用他們的經驗？

Yes, indeed, of course, at the workshops, there's some work to do usually with their facilities and things like that to get approvals and the facilities and get things squared away, so they can begin using the technology. And yes, absolutely. Once they get experienced with Catamaran, many, not all, but many of the physicians love to teach.

是的，確實，當然，在研討會上，通常需要對他們的設施和類似的東西做一些工作，以獲得批准和設施並把事情擺平，這樣他們就可以開始使用該技術。是的，絕對是如此。一旦他們獲得了雙體船的經驗，很多（不是全部）但很多醫生都喜歡教學。

They'd love to pass the word on if they're satisfied with what they're using and how it treats their patients. And they can. They can become faculty either in live training events, virtual training events, all different kinds of pathways to get that job done because, quite candidly, there's nothing more powerful in our world than peer-to-peer work in education.

如果他們對自己使用的產品及其治療患者的方式感到滿意，他們很樂意傳達這個訊息。他們可以。他們可以透過現場培訓活動、虛擬培訓活動以及各種不同的途徑來成為教職人員，因為坦白說，在我們的世界裡，沒有什麼比教育領域的同儕工作更強大的了。

They'll listen to us company guys for a while, but they like to hear from their colleagues. And so absolutely, Anthony, once they get comfortable with the technology, we're always in conversations about their willingness to represent, if you will, the technology in training environments and informational environments.

他們會暫時聽我們公司人員的意見，但他們喜歡聽同事的意見。因此，安東尼，一旦他們熟悉了這項技術，我們就會一直在討論他們是否願意在培訓環境和資訊環境中代表該技術（如果你願意的話）。

Okay. And then lastly, you're mentioning about the sales force. Do you have a target for the end of the year in terms of the number of salespeople? Or is it you're going to be selective and grow when you get the right people in place?

好的。最後，您提到了銷售人員。您有年底銷售人員數量的目標嗎？或者當你找到合適的人時，你會有所選擇並成長嗎？

Well, we were very selective. So we've fully filled now all five of our sales regions around the country. These area sales managers are assigned to building that geography through independent distribution networks, right?

嗯，我們非常有選擇性。現在我們已經填滿了全國所有五個銷售區域。這些區域銷售經理被指派透過獨立的分銷網絡來建立該地區，對嗎？

As things get too big for them to manage, certainly, we'll contemplate expanding to more regions and things like that. But right now, we feel like those five regions properly focused, et cetera, are going to be able to deliver the kind of results that we're looking for going forward. And these guys are very experienced, very professional people, and we're really encouraged by some of the new team members that we brought on here in the last four to six months.

當然，當事情變得太大而無法管理時，我們會考慮擴展到更多地區和類似的事情。但現在，我們覺得這五個地區得到適當的關注，等等，將能夠提供我們期待的未來結果。這些人都是非常有經驗、非常專業的人，過去四到六個月我們引進的一些新團隊成員讓我們深受鼓舞。

Okay. And then lastly and then I'll hop back in the queue on the follow-up there. So you have the five territory/regional managers, and you have the independent distributors, how many independent distributors are there that report or work with your five regional/territory managers?

好的。最後，我將跳回隊列中進行後續行動。那麼，您有五名區域/區域經理，還有獨立經銷商，有多少獨立經銷商向您的五名區域/區域經理報告或工作？

Yeah, indeed. So of course, they don't report to them, they're independent by their definition. But our area sales managers partner with these independent distributors and frankly, our company across the board, internally and externally partners with these guys out in the field who are present in the operating room who have relationships with physicians and what have you.

是的，確實如此。所以當然，他們不向他們報告，根據他們的定義，他們是獨立的。但我們的區域銷售經理與這些獨立經銷商合作，坦白說，我們公司在內部和外部全面與手術室裡的這些現場人員合作，他們與醫生等有關係。

We have over 90 of those contracts in place now and that's growing every single day. And of course, when they come on board, there's some work to do, to train and prepare them to represent the technology well and what have you. So all of that work is ongoing, but it starts with these new area sales managers, their network with independent distributors within their geography to get that number growing and building and to get that work done.

我們現在已經簽訂了 90 多份這樣的合同，而且數量每天都在增加。當然，當他們加入時，還有一些工作要做，培訓和準備他們能夠很好地代表技術和你所擁有的東西。因此，所有這些工作都在進行中，但首先要從這些新區域銷售經理開始，他們與所在地區的獨立分銷商建立網絡，以實現這一數字的增長和建設，並完成工作。

Okay, great. Thanks so much. I appreciate the color. I'll hop back in the queue.

好的，太好了。非常感謝。我很欣賞它的顏色。我會跳回到隊列中。

Indeed. Thank you.

的確。謝謝。

I would now like to turn the floor back over to Mr. Foster for his closing remarks.

現在我想請福斯特先生發表閉幕詞。

Thank you, Maria. So I'd like to thank everyone for joining us on 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, the MZ Group, who would be more than happy to assist. And with that, I wish everyone a good day.

謝謝你，瑪麗亞。因此，我要感謝大家今天參加我們的收益電話會議，並期待繼續向您通報我們正在進行的進展和成長。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 MZ Group，他們將非常樂意為您提供協助。在此，我祝福大家有美好的一天。

This concluded today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

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。