Karen Zaderej: Can somebody pull up the active account number for me? So we generally are focusing and it will be in the deck that we’ll get out. But we’re generally focusing on the core accounts because that’s where the majority of our revenue comes from, it’s from those core accounts. But of course active accounts grow into core accounts. So it’s important to make sure that we have that feeder pool of active accounts. But our real focus is on thinking about how can we take these accounts to be $100,000 or bigger so that we can continue to go deeper and become a standard of care in those core accounts. If you remember, an active account is a pretty low threshold. It means that we had only six orders in the past 12 months. Basically what it says is you’re through the back committee, and you’ve got a surgeon who has started to use the product in some small way, but it may not be a focus or target account for us.
So we had 1,006 active accounts. So we have a very good pool to continue to build from as we drive those core accounts and build a bigger base.
Caitlin Cronin: Understood. Thanks so much.
Operator: Thank you. Next question today is coming from Dave Turkaly from Citizens JMP. Your line is now live.
Dave Turkaly: Hey, good morning.
Karen Zaderej: Good morning.
Dave Turkaly: I was wondering if you might provide us a little additional detail. When you look at the 367 core accounts, like, how many of them are using more than one AxoGen product or how many of them — are there accounts that are doing the trauma procedures as well as the scheduled, and how kind of popular or how common is that?
Karen Zaderej: Yeah. So it’s going to be hard to answer that because it’s some of all of those things. Look, most of our core accounts use more than one product, but they — most are not fully penetrated that they use all of our products in all of the applications and algorithms. So — and by that, I mean, in trauma, remember that there’s a lot — we call trauma one thing, but there’s a lot of different types of trauma. So a surgeon will adopt initially in sort of short digital nerve injuries and work their way up to complex mixed and motor injuries across a stair step process of adoption. And most of our accounts are at an early stage of penetration. That’s why we think we want to continue to focus on that core account and become a standard of care in those core accounts.
There are some core accounts that are trauma only. There are some core accounts that are scheduled procedures only. And so it is still — you get a foothold with one surgeon. That’s generally what it takes to become a core account, is one surgeon who will then be about $100,000 in revenue. And the rep’s job is to continue to expand out to other surgeons across all of the applications. And so because the threshold is only $100,000, like I said, there can be a core account, there can be one surgeon that takes trauma call, and that could be a core account, but we got a lot of opportunity to build it from there.
Dave Turkaly: Thank you for that. And then maybe one for Nir. Congrats on the — your progress on the bottom line. I guess, as we’re looking into next year, I assume probably not adjusted EBITDA positive for the full year, but maybe trending in that direction. I was wondering if you can make any comment on sort of what you think that EBITDA loss might look like or maybe compared to what ’23 was directionally? Any help there would be great.
Nir Naor: Yeah. I mean, we — yeah, those are specific figures. But I would say a couple of things that I would be looking at. Revenue growth and benefit of the operational leverage and the economies of scale, I think this is the most important thing. In addition to that, better and continued focus on resource allocation, sales force, productivity. In addition to that, a couple of tailwinds, one of them impacting the EBITDA and the other one, the cash balance, but the royalties on Avance that we have been paying for the past couple of years grown a bit over $3 million in 2023, they rolled off at the end of 2023. So those are sort of the high-level levers that I would be looking at when you’re looking at the improvement from last year to this year when it comes to bottom line.
Dave Turkaly: Thank you.
Operator: [Operator Instructions] Our next question is coming from Ross Osborn from Cantor Fitzgerald. Your line is now live.
Ross Osborn: Hey guys. Good morning, and thanks for taking our question.
Karen Zaderej: Good morning.
Ross Osborn: In your prepared remarks, you mentioned seeing AxoGuard HA+ being used in new types of cases versus classic offering. Could you maybe just walk us through some of those use cases?
Karen Zaderej: Sure. One of the things we’re really excited about AxoGuard HA+ is the HA layers provide a slippery gliding surface. So when you think about your extremities and where you need to bend or move, that slippery layer helps when a nerve is going around a large joint. So elbows, knees, hips, those are all areas where that gliding surface can be important to make sure that the nerve remains free from attachments and can move smoothly across and through that joint. And so, that’s one of the big areas that we see surgeons really seeing a great application for the AxoGuard HA+. So we continue to see be interested in how they’re using it, seeing some great applications in those areas where they want to have that gliding surface and getting some very positive feedback about the product.
Ross Osborn: Okay. Great. And then maybe lastly for us, just on OpEx. So it sounds like hiring maybe minimal this year in terms of sales reps. But would you walk us through any new or expanded marketing initiatives? And also remind us puts and takes on the R&D line, please? Thank you.
