BSD Medical Corporation (BSDM)’s Investor and Analyst Conference Call Transcript

And finally, we will focus on clinical and the economic benefits of our technology. As I did diligence from the outside before deciding to join BSD, I was told that we had the best microwave ablation technology, in some cases by people that maybe have our interests at heart they admitted the company should ripe themselves if they define the strategy. If they separated the products that they believe that we had a very good platform from which to build upon. When the advantages of our platform is that our cost of goods gives us a competitive advantage to price our system to be competitive, will still achieving very very nice growth margins.

Turning to page 9, why do we chose microwave? This chart on the right is outdated in 2010, we’re currently acquiring the data for 2014, but it shows a nice size market, of over five hundred million dollars in soft tissue tumor ablation. More importantly, on the left are some bullets of which if you are looking at this whether its microwave or hypothermia or any product or medical device, I think you look at this as an investment phase, this a good market to be in. Its large, the microwave ablation portion is growing at over 20 percent domestically, year over year. Radio frequency has been the standard of care and currently on 75 percent of the market, and whether its BSD’s microwave technology or other interests in the market place, we are quickly in play to replace that as a standard care so BSD’s initiative, needs to be able to grow with the market organically but deal more than our share by competing better the other players in the market place.

Nice thing about microwave ablation is that it is a recurring revenue model. What does that mean? It’s a fancy word on the famous Gillette razor, razor blade. If we need to get more razors in the hands of more people so that more razor blades are purchased as we increase in case load. The gross margin profile is superior to our Hypothermia business. Almost, twice as good, and the economics are better for the healthcare systems. So, when you look at the value proposition of delivering a product into a competitive market, is it good for the patient? Is it good for the provider and is it good for the company? And the nice thing is we have really hit the trifecta of the three things. Very good good clinical outcomes for the patient. It’s easy for the physician to deliver and is also economically feasible for the hospital. And the margin from the gross rates for BSD should take care of the rest.