Joshua Jennings: I appreciate those answers. Thanks, Jim.
Operator: Our next question comes from the line of Brooks O’Neil with Lake Street Capital Markets.
Brooks O’Neil: Good afternoon. I appreciate the comments you made to Josh, but I’m curious if there’s any color at all with regard to the response or any approach you’ve made to Level 1 and Level 2 trauma centers and doctors who operate there?
James Corbett: Thanks, Brooks. I think it’s on one hand early, but on the other hand, we’re six weeks in since we started our selling activity. What we are seeing is an increased activity in all the accounts that are outside burn centers, and we’re achieving VAC approvals, and we’re getting cases done. One of the reasons we raised our guidance is because of that early momentum and actually the consequence of our early preparation, because when the approval came, we were ready. So, I think we’re feeling quite bullish about the remainder of the year and 2024 ahead of beyond that. And so, without specifics, that’s the experience we’re having.
Brooks O’Neil: Great. Then I’m curious, I have some sense that there’s been at least some opportunity opened for you to apply RECELL to smaller burns and pediatric burns. Have you had any success in those areas so far?
James Corbett: Well, we have, and it’s a difficult thing to measure, right, because the hospital buys a RECELL kit. We don’t get necessarily clear insight to who they use it on, but we do get it and we do receive that feedback anecdotally. And I think you can see it mostly on a macro level. For us who have been growing actually faster against a larger base the last three quarters without adding new accounts is very reflective of a penetration event going on with this technology resale. So, we are getting those cases. It’s difficult to quantify them because of what I just described, but the macro numbers validate that there is just simply increased adoption of RECELL over time.
Brooks O’Neil: Great. Then I just wanted to ask you one more, and it really relates to your personal philosophy, Jim, about providing guidance. In today’s world, some people are trying to sandbag and put out numbers that you can easily beat. I think you’ve described a somewhat different approach of trying to build credibility. But could you just talk a little bit about how you view the provision of guidance for analysts and investors at AVITA Med?
James Corbett: Sure. Yes, it’s a rather important question, Brooks. I appreciate you asking. We intend, when we set guidance, to hit the middle. That is what we believe when we set it. We’re realistic, and that is why we bracket it. So in this case, we finished well ahead of the middle. $11.2 million would have been the middle. We had a stronger end of the quarter. Some of that is obviously reflected. Three weeks of June, we had the increased indication already, and we were preparing. So, we had some early adoption that contributed to that. So, my personal philosophy is to be within the range of guidance, for sure. Perfection is a dollar over the middle, where we get the middle, but we’re on the upper side of it. And the team said afterwards, at the end of the quarter, they said, how do you feel the quarter went?
I said, we missed guidance. We didn’t get it quite right. We set it too low. You should expect us to be within guidance, and the middle is our goal. And that’s how we think about it. And it is about credibility. I would like our investors and analysts who follow us to be able to depend on what we say and what we do and not believe that we’re trying to play it easy. We’re here to grow this company and not to hold back about it. So, you will find the sandbagging in our practice.
