Swayampakula Ramakanth: Thank you. This is RK from H.C. Wainwright. A couple of quick questions. So the VA channel continues to grow and continues to grow at a very good clip. This quarter, as you said, you did close to 130% growth year-over-year. Though the number of centers grew only in less than 30 centers compared to last year. So I understand some parts of it is probably the depth within certain centers. But how much — assuming that you’re not going to add more centers or not in big amounts from here onwards. How sustainable is this growth? And are there places in the current centers where you’re not at all tapped and you’re kind of asking your sales folks to go figure out these additional centers where you could commercialize gammaCore?
Dan Goldberger: Yeah. RK, you’re absolutely on the right track. It’s far more efficient for us to go deeper into a facility where we have existing business for at least 2 reasons. The first is that the supply chain folks know us and they have loaded us into their computer systems. And the second is that once our sales guy has identified a champion within the facility, he has a reason or she has a reason to be in the facility and can spend additional time calling on other prescribers within neurology, for example, but even more importantly, calling on other departments within the facility. So we’re coaching our team to go deeper within the facilities that are already opened up. The other driver we have is just is old-fashioned feet on the street.
We are scaling the business with what I call 1099 reps, right? These are independent agents. They get paid straight to mission. They probably have two or three or four other products in their bag that they are selling into the same customer to the same facility. And as we have success, that success breeds success, and it’s becoming more and more efficient for us to recruit additional new 1099 reps. So we can scale the business in that direction as well, just by having additional feet on the street.
Swayampakula Ramakanth: Thanks for that. And then talking about some of these new indications that you’re looking at and also the recent data that you released, I believe, on PTSD. When you look at VS centers, these are the places where you would see these additional indications or commercializing for additional indications — as an opportunity. How much of this — how much of the feedback that you get from the VA hospitals? Are you kind of utilizing to think about new indications for gammaCore? And just on the PTSD itself, how soon do you think you can get that indication so that you can start commercializing for that as well?
Dan Goldberger: Yeah. So great question. I get — I’m very superstitious about the FDA process. So I’m not going to speculate about the timing of getting the additional — the label extension. We are aware that there is off-label prescription of gammaCore for PTSD in the VA hospitals, but also in our cash pay business. In the VA hospital system, we don’t see the diagnosis. So we don’t have a clear view as to what percentage of our prescriptions are for PTSD or Parkinson’s or the other indications that we’re working on, but we are aware that there is at least some off-label prescribing going on.
Swayampakula Ramakanth: Okay. Thanks for that. On the TAC-STIM business, you said that the second quarter could be flat. I understand that. But going into third quarter, September happens to be the fiscal year for the government. So do you — as you enter the next fiscal year, how are you thinking about growth? Can there be additional contracts coming through? Or is this a long drawn process? And it’s really hard to read in terms of new contracts coming in, in the next fiscal year. I’m just trying to think about the cadence of — I know you said it’s very hard to predict the cadence of numbers, but at the same time, I’m just trying to get a feel for like what are the base that can be push and pull on that number?
Dan Goldberger: Yeah. So we’re already getting, I’ll call them, contingent purchase orders and the contingency is around the DoD budget process. Things have settled down. But every time there was a continuing resolution in Congress our purchasing contracting process came to a full hold. So we do have a funnel of these contingent purchase orders, but I have no visibility as to the timing of those contingent purchase orders, and we’re not going to try and give any revenue guidance around it until we know for sure that what the delivery and revenue recognition dates are going to be.
Swayampakula Ramakanth: Perfect. Thank you much. Excellent quarter.
Dan Goldberger: Yeah. Thank you.
Operator: [Operator Instructions] Our next question comes from Walter [Indiscernible] Partners. Please proceed with your question.
Unidentified Analyst: Hi, guys. Hi, Dan. Areas of unrelated questions. There is published data, this is on the military on learning and on improved learning and on improved performance by drone pilots, do you have any color that you can comment on what type of areas in the military or buying this? Or is it still what type of units or just some sense?
Dan Goldberger: Yes. So there’s very little that we’re allowed to say publicly, but several Army Special Forces, Battalions have acquired a significant number of handsets for pilot deployment, similar number of Air Force Special Forces units and then AMC, Air Mobility Command, which are the very large long-distance transport aircraft that the Air Force deploys. Those are the three areas that are in pilot deployment at this point.
Unidentified Analyst: Okay. Totally unrelated questions. You had briefly mentioned at some point, and I do a plug about my wife that one of the benefits although there are many benefits, you’ve done some stuff on gastroparesis is that gammaCore may help or does help people with some stomach issues, you had mentioned some people might be using it off-label in conjunction with the weight loss drugs, which sometimes cause different stomach issues. Is that actually — is there any material comment you can make on that? Or a couple of doctors have tried it or who knows? It’s always good to have something related to waitlist, by the way, in this market.
Dan Goldberger: I can certainly use something. But so — what you’re describing is anecdotal commentary that we heard from several of our customers, especially in the functional medicine, integrated medicine, cash pay practices where they’re dealing with complicated patients. And they are prescribing a lot of those new injectable weight loss drugs. Nothing that I would describe as scientific, certainly no prospective trials. But it’s a lot of fun to hear the anecdotes that it’s working as a combination therapy in weight loss and gastroparesis.
