David O’Toole: Yes. So, thank you for the question. I appreciate it. I’ll take the second question first around cash. As of June 30th, we have a solid balance sheet. We’ve already indicated on a number of calls and discussions that we are in the process of developing our 2024 plan, which will include a number of things that we’ll have to take into consideration as we move forward. And that is, we will be launching, if it’s approved, RECELL GO, which will need additional working capital. We’ll need to build inventory for that. We will also be looking at our strategy for Vitiligo. And we will have other working capital needs. All of those will come out of our 2024 operating plan, which we will give more guidance in February once we have that developed.
But I can tell you right now that we have a solid balance sheet as of June 30th. As far as leverage, we’ve talked about when we think a salesperson is crosses over as far as paying for himself. And that is himself or herself. And that is when they’re selling around five units per month. And a fully trained salesperson is usually selling around 20 units per month. So, as Jim indicated, we hit the ground running on June 7th. And so, we think that we’re going to get leverage from those new salespeople quickly. How quickly that will be? Hard to say. It’s still early days. But as we move into 2024, you would expect that all of the sales field professionals are selling at least enough to cover what their costs are.
Matthew O’Brien : Perfect. Thanks so much.
Operator: Our next question comes from a line of Ryan Zimmerman with BTIG.
Ryan Zimmerman: Good afternoon. Thanks for taking the questions and congrats on the quarter. David. Nice to speak with you.
David O’Toole: Thank you.
Ryan Zimmerman: So, maybe just to start, the margin guidance is encouraging, especially given the bounce back expectation in the back half of the year. But I’m just wondering, David, if you can kind of talk about maybe margins longer term. We got RECELL Go coming into the picture in 2024. And just how you think about margins over the longer term, maybe treading towards the higher end of your guidance or potentially even above that as we think about it across margin?
David O’Toole: Yes. Thank you for the question. I appreciate it. And thanks for following us. We’ve talked about this before. And the biggest component of our cost of goods sold is the manufacturing facility that we have. And it’s fixed. And it’s 50% of our cost of goods sold. That’s not going to change as we move into RECELL Go within percentages. It’s, for the most part, 50%. So, as we look forward, and we’ve talked about this, as our volume increases, and we would expect our volume to increase over the next 18 months with the sales force fully in the field. And so as — it’s either for the ease-of-use product that we have now or the RECELL Go cartridges that we will when it is approved in 2024. That volume, as we look into 2024, will increase.
And our margins should go up accordingly. We will give more guidance in 2024 once we’ve developed our plan. But you can see a situation where we would be approaching a 90% margin as long as our volume, our sales, are in line with what our expectations are.
