electroCore, Inc. (NASDAQ:ECOR) Q2 2023 Earnings Call Transcript

I don’t think we’re doing much on Twitter or X yet, but we’re looking at a much more concerted campaign, not so much over the summer, but kicking in, in the fourth quarter and then running up to the launch of our next-generation product early next year.

Operator: [Operator Instructions]. Our next question comes from Tyler Bussian with Brookline Capital.

Tyler Bussian: Dan and Brian. I’ve got some quick ones here for you. The first one is primarily based on kind of the second-generation device plans. So do you have any sense of — are you going to be pushing those devices out through both the gammaCore and the Truvaga platforms? I know you already said it’s not part of the TAC-STIM. Do you think you’re going to do something separate for branding for that app connected device?

Daniel Goldberger: We’re going to start in the consumer segment with our Truvaga brand. gammaCore Sapphire, our flagship prescription product has been our [indiscernible] but we do think that there’s a segment of the prescription customer population that would prefer an app-enabled platform that can collect data and can record data, especially in the headache space, the notion of having a headache diary and diary is pretty common. So we do see rolling that out in the prescription space, but probably alongside of gammaCore Sapphire not to replace it.

Tyler Bussian: Got it. So just for clarification. The plan is to take the current Truvaga device and fully replace all offerings with this app enabled not offer the non-application based device when you get 2.0 out?

Daniel Goldberger: Correct.

Tyler Bussian: Okay. Great. And then the other quick question I’ve got. So research and development plans are primarily a wind down for the rest of the year. But Brian, do you know for SG&A, how should we think about that line item going forward? It seemed like in the last two quarters, freight it stayed pretty stable. Is that still the plan? Should it maybe raise a little bit with sales continue to grow? What’s kind of your expectations there?

Brian Posner: Yes. I think you’ve got to look at it kind of in two buckets. There’s the sales and marketing, which has a variable element to it in addition to a fixed element, that will — that will increase, right, with sales, the variable portion will. However, there is a rationalization of operating expenses that Dan referred to earlier in the call. So we’re looking at — we’ve reduced some positions in G&A. So I think the G&A fixed part will go down a bit and that will be offset somewhat by the variable cost element of sales and marketing. So it should stay around that number more or less. Obviously, we’d like the variable to go up more and the revenue going up is a good thing, too, right? So that’s how you should look at it.

Operator: There are no further questions at this time. I’ll hand the floor over to Dan Goldberger for closing remarks.

Daniel Goldberger: Thank you, operator. We appreciate everybody joining our call today. I want to give a special thanks to all of our employees who work tirelessly to deliver our amazing therapy to patients. I also want to thank the health care professionals and their patients for their loyal support of gammaCore therapy. We are also thankful for the support of AFRL, NIDA the NFLPA for supporting our new product initiatives and research. Lastly, we have to thank our shareholders, new and old, for their ongoing support of the company and our mission to improve health to our proprietary noninvasive vagus nerve stimulation technology platform. To our long-term directors, JP Errico and Trevor Moody for reelection at our shareholder meeting last week and we’ve reduced the size of the Board from 9 to 7 directors.