John Vandermosten: And looking at the gross margin, I remember you had a lot of inventory that was helping keeping up that gross margin. Should we expect that to continue through 2023? And Brian, I know you had mentioned something to Jeff on that. Just wondering when that might run out and you have to start using newly manufactured inventory?
Brian Posner: Well, as Dan mentioned we have some new products coming out, scheduled for 2024. So we’ll have some out outlines for supply chain down the road. But right now we’re still very comfortable with our inventory levels for 2023.
John Vandermosten: So no new manufacturing is probably going to be required to satisfy anticipated demand in that $14 million to $15 million range you’ve
Brian Posner: No, we should be fine. The revenue should more than cover the cost of that, we should be fine.
John Vandermosten: And just the last one for me is on all the patents you have granted recently. And Dan, you’d also mentioned that we have some new products coming up. Can you associate some of those patents that have been announced? I think, there were at least five that maybe applicable to that to next year’s launch of new products?
Brian Posner: We have two broadly speaking, we have two families of patents. The first is around extending our non-invasive vagus nerve stimulation technology to other indications. And I’m using the term other indications broadly, because the work that the Air Force and now the Army is doing around human performance where they’re talking about cognition, where they’re talking about attention that is not what you would traditionally think of as a medical indication. And the second group of patents are around taking our product platform and moving it into the mobile phone app enabled digital health space. And so vagus nerve stimulation that communicates with an app, broadly speaking, is covered by this new family of patents.
Operator: Next question is coming from RK with H.C. Wainwright.
Ramakanth Swayampakula: It looks like you certainly had a good year and you’re looking to an even better year, especially with your guidance that you just provided. In terms of the confidence in your guidance going up quite a bit from where you are now. Can you just highlight some of the things that gives you that sort of confidence?
Dan Goldberger: Our largest revenue stream for the last two years and we expect in 2023 is our VA hospital business. The first half of €˜22 was impacted by COVID, and I’m very excited about sort of on the one hand that back to normal access that we will have for the full year 2023 multiplied by just the increased number of feet on the street we have, because we’re recruiting 10.99 reps. And so growing that business 60% in 2022 over 2021, we ought to be able to grow at least 50% and probably more like 60% or 70% in 2023 over 2022. Similarly, starting from smaller numbers, but our cash pay GC — gCDirect, gConcierge, we rattled off some of the prescriber numbers. Prescriber numbers are growing in the first couple of months of 2023.
So I think that that’s going to see accelerating momentum as we go through the year. The Joerns announcements and opening up access to the Kaiser system in the back half of the year, not even counting any of that. So lots of reasons why we should exceed that 50% growth in our base headache business and very few reasons why we’ll miss on it.
Ramakanth Swayampakula: So just to kind of dig a little bit deeper into some of those things which you just stated. In terms of the VA centers and also I’m more interested in the BOOST program. You stated that you have a contract in hand for the BOOST program. Is there anything more you can say other than just saying that you have a contract in the sense even if you can give us the numbers? How is this being set up, in the sense, is it going to be just a quarter at a time or the contract that you have that revenue would be spread over the full year?
Dan Goldberger: So the specific BOOST contract will be — we’ll have some revenue in the current quarter and in the second quarter. But over and above the BOOST contract, we have now been getting orders for deployment of small number of products. And we have about half a dozen quotations out there for deployment in certain units of Air Force Special Forces and Army Special Forces. We have not gotten anything from Navy Special Forces yet. So while the BOOST program was a specific R&D contract, we are now getting some small deployment orders and those will be recognized as product revenue when we ship and collect on them. And it could be significant in the second and third quarters of this year.
Ramakanth Swayampakula: And then on the commercial program, on the cash pay business, I know you are constantly adding more prescribers into that system. But just want to understand how that is working in relationship to the number of prescribers? Because you had this going for almost a year plus now. Is there some kind of correlation between the number of people you are adding in and getting scripts, or is this going to take a little bit longer until you have more prescribers test it, get their patients to test it? So I’m just trying to understand when would you get to your point where you feel comfortable with the increase in prescriptions in relationship to these prescribers?
Dan Goldberger: So that’s a great question and I have to slice it a few more ways. Historically, we have been a neurology company. Over the course of 2022, we have dramatically increased our call point. So roughly one third of our prescriber adds in 2022 come from traditional neurology or pain practices. But another third come from functional medicine, integrated medicine practices, which already have a cash pay model and clientele. And then the third-third of our prescriber base are chiropractors, which again already have a cash pay business model and clientele. So I’m very enthusiastic about the uptake. The traditional neurology, pain markets are slower to adopt, because their clientele generally have traditional insurance. But these other two segments have already embraced a cash pay business model in there and their demographic is already open minded in that direction.
Ramakanth Swayampakula: And then one last question from me, talking about Joerns Healthcare. I would imagine, there are multiple organizations in the country similar to Joerns Healthcare. So in terms of your growth strategy, are you waiting to see how Joerns executes before you start trying to look for other organizations, or these are all parallel conversations that are ongoing?
Dan Goldberger: No, you’re exactly right. We want to make sure that the Joerns launch goes smoothly in that DME business model. There is a lot of back office work to adjudicate the prescription, figure out what benefit plan that particular patient is on, collect co-pays or deductibles from that patient. So we want to make sure that channel is all working smoothly before we try to take it more national.
Operator: Our next question is coming from Anthony Vendetti from Maxim Group.
