Barry Steele : That’s correct. As we pointed out, there’s a significant amount of not only the seasonality, but other onetime expenses that we had this year, right, that obviously won’t repeat in the coming quarters. Some of that hit EBITDA, some of that didn’t…
Jim Sidoti: And then it sounds like the Sanara is something that we should really expect and have more of an impact in Q3 and probably Q4 as you’re progressing. Is that right?
Rich Dilorio : Yes. I mean we spent most of last year just getting ourselves ready with the licensing, accreditation, the sales team starting their activities and training and everything. This year, those guys are out there hitting hard. And we did see a slight increase even with the tough comps on the leases of equipment last year. So we’re still going to have those leases and comps for the next couple of quarters, that’s not the real revenue we want, though, right? We want the Sanara products and the other Wound Care products we have to really grow. The leases will — they’re nice when they come in. So this year is a much better type of growth that we want long term than just getting some nice leases to come in, we will have those in the future. Sanara looks really good. The team is starting to gain some traction. I think quarter-to-quarter, we’re going to see it grow, and it should start to really hockey stick up by the end of this year and certainly into next year.
Jim Sidoti: And then last 1 for me. it seems like GE is where you want it to be at this point, but are there other GEs out there that you’re working with? And do you think you could land another contract with another equipment provider over the next year or two?
Rich Dilorio : Yes, I think we have more agreements coming. I don’t see anything to the magnitude of GE, the $10 million to $12 million range. But we have some things in the works now that hopefully we can speak to by the end of the year that are — they range from hundreds of thousands to a little over $2 million. And those are much nicer. They tend to be more profitable and easier to implement. So we have some things now. We’ve taken the governor off the sales team, which we put on purpose because we wanted to make sure we focused on the MSA, the original MSA with GE — now we’ve kind of taken the reins off those guys and we’re letting them go, and we’re starting to see some opportunities pop up. And as we sign contracts, we’ll give you guys visibility into that.
Jim Sidoti: Are you looking to stay in the same geographies where you have teams in place now? Or would you expand again…
Rich Dilorio : Yes. And the good news is the geography is all over the country, right? We pretty much have technicians everywhere. So there’s not a lot of restraint on where.
Operator:
Aaron Warwick:
Aaron Warwick: Just First, I wanted to start off a question about the guidance and relative to the first quarter. And then I wanted to talk a little bit more about conceptually what you spoke about there, Rich, towards the end of the prepared remarks. Getting into the guidance, I mean, I was a little surprised the quarter seems weak from — in terms of both revenue and adjusted EBITDA. But you guys obviously had a good feel when you put out that guidance that would have been almost towards the end of the first quarter and you’re reiterating it today. So it sounds like you’re planning on a pretty strong back 3 quarters of the year. Is that…
Rich Dilorio : Yes. Yes, I think that’s right. On the top line, we are right on plan. So this is exactly what we expected as Wound Care ramps and some of these other opportunities start to show up. On the bottom line, we are effectively on plan. If you take out some of the nonrecurring things that happen, like the audit fees that Barry mentioned. So we’re kind of right where we thought we would be. And yes, our revenue should grow throughout the year as these things come on board. So yes, we’re not concerned about getting to those numbers. And Q1 is always low on the bottom line anyways. I think Barry just mentioned that with all those one time — or stuff that just comes in Q1, right, the timing of it. So nothing to worry about for the last 3 quarters.
Aaron Warwick: And even still, it sounds like there’s potential upside just because you have indicated your new philosophy of guiding for what you already sort of have in the bag, I guess, I mean, obviously, still have to play out. But you can envision that you’re not really building anything in there that’s not already won. Is that…
Rich Dilorio : Yes. I mean that’s the philosophy, right, that there should always be upside in the number, there should be more on the opportunity side than the risk side in the model. And if they play out, then we’ll raise our guidance. If they don’t, we can still get into our range where we want to be. So we’re just trying to mitigate that risk for you guys, tell you where we are. And if there’s upside, we’ll let you know as soon as it comes. But we want to wait, I mean, even on the biomed side, right? There’s some opportunities that we’re pretty close to, but I want to wait until the contract is signed and we start working on them to be able to give you guys that visibility. I don’t want to jump the gun on it.
Aaron Warwick: Yes. And did I understand correctly related to that, do you have a new customer there? Is that what it said in the press release that you have already started to recognize revenue in the first quarter from?
Rich Dilorio : So we have a big oncology customer that’s actually renting equipment and buying supplies from us. It just got onboarded in the last couple of weeks, and it’s sizable. I mean, it’s well over $100,000 a month, so we’re going to start seeing that revenue a little bit this quarter, but it should really kick in Q3 and Q4, which will obviously also help us get to our number.
Aaron Warwick: What should we expect in terms of — I mean, because there was no press release or if there was, I missed it, but like a customer of that size? Is that something that you guys would tell us in between calls? Or are you just going to be updating on the quarterly calls related to…
Rich Dilorio : Yes, I think it’s — Aaron, I think it depends if it’s like a strategic customer or something different, we may put out a press release. We don’t historically do it with customers once in a while, we do. And it’s also driven by whether or not the customer wants us to use their name, how long it takes to even get that permission, that sort of thing. But we open up customers that are $1 million here and there for different parts of our business. We don’t necessarily announce it. Those will probably keep for just quarterly results and earnings calls. But if it’s something more strategic than hey, it’s just a big win, we’ll give you guys visibility into that.
Aaron Warwick: That makes sense. I guess you really have in the past, it’s mostly been partnerships and things of that nature so…
Rich Dilorio : Exactly, yes.
Aaron Warwick: And then I guess that kind of leads into. So you kind of talked about this philosophical change. I appreciate that because I’ve been wondering and some people have asked me, specifically, you mentioned lymphedema, which you just — up until now, you haven’t talked about for several quarters. And I mean, just — hearing you talk about the opportunities, the double-digit growth likely for ’25 and beyond, obviously, some huge opportunities. I mean just to put this into context for myself, I guess, you had mentioned at 1 point, I think when we started this whole lymphedema conversation 3 to 4 years ago. It was like a $300 million TAM. But as you said, that was something that you would have to attack on your own. So — but nonetheless, I mean, that’s an enormous opportunity.
So what you’re seeing now with this change in philosophy must be pretty significant for you to just back away from that type of opportunity in lymphedema. Am I remembering that correctly, I guess, in terms of the possible size, I’m not necessarily saying you’re going to have $300 million in revenue from these — from this philosophical change, but it should be quite a contribution to the bottom line if you’re sort of putting that on pause.
Rich Dilorio : Yes. So there’s a lot of factors that go into these decisions, right? So it’s not just the TAM because there’s some TAMs out there that are even bigger that we could, in theory, go after and maybe play around the periphery win some market share generate some revenue. It’s how quick can we get into the market, how well does it fit with what we do. Do we have the right partner? Do we have to build it from scratch? Like all those things come into play. And lymphedema — so when you compare like lymphedema versus GE or Sanara, right? I mean, that’s really the decision-making tree for us, right? So lymphedema was on plan, but it would be blazing new trails for us. So that was 1 piece of the decision making. Our experience based on our oncology products, obviously makes sense, right?
