So Japan would be another country — in addition China, China is opening up again and as you know we have a company in China in Guangzhou which we have established before the COVID, but we did not operate it because of the COVID, nobody could have gone and visited China. So now we are considering to see how we can go direct in addition to what we do with distributors because in China you cannot use only one way of distribution. It’s a very complicated country, depends on the territory. Even in China you need to know five different languages and five different operating manners, but we’re going closely. Latin America, again we are investing in all the countries. This year we would have the first use of meeting in Latin America in San Paulo in October 500 doctors, which is very important.
We’re covering all the country right now, nine countries in Latin America. We signed the last contract a month ago and we’re working on regulation again, country by country, because the regulation in Brazil, which is in visa, is not the same regulation in Colombia. And you have to deal with each regulatory organization or regulatory body by itself. In Europe, as I said in my speech, we just established a subsidiary in Germany and we intend to start operating the subsidiary sometime in the fourth quarter. We hired a managing director there and hopefully we will start interviewing some direct salespeople. By the way, when we go direct, sometimes we don’t sell more systems, but we recognize twice as much dollars, because when you go direct, you recognize the full value and not the transfer price and that’s important.
And also important, when you go direct, you feel the market, you talk with the doctor, you know what they want, what are their unmet needs, and it’s easier. So I’m not suggesting that we will go, we’re selling in 92 countries, we will go direct in 92 countries. In certain countries, we have a distributor that is doing a good job. In the future, we might offer them to become partner, 51%, so we can work together. But slowly and gradually, we are improving our position in Latin America, Europe and Asia.
Shakil Lakhani: I would like to add that it usually takes some time from the moment we open a subsidiary until the moment we start to see a significant contribution. So to answer your question, Jeff, there was no one-time in the international market or at all in Q2. It was all normal course of business.
Jeff Johnson: Of course. Good. Yeah, no, that’s helpful, both of you. Thank you. Again, a very solid number. So congrats on that. And then, I don’t know if Spiro was able to reconnect or Dr. Crandell [ph], maybe this is for you, I’m not sure. But I just want to make sure I’m understanding the women’s healthcare strategy here. I feel like my understanding has gone back and forth a couple different times on this. I thought when we spoke in Miami just a month or two ago, the focus was going to remain primarily on kind of cash pay women’s healthcare on the non-reimbursed side. I know you’ve got now this proof of concept study going on, SUI, you obviously acquired the by these patents. One, I guess, Yair, for you, can we stay some 3% R&D as a percentage of revenue if we go into these more formalized, maybe bigger clinical trials?
Is that $3.5, $4 million a quarter still the right run rate for R&D spend as we get into 2024, but more importantly, are you going to pursue some of these maybe costlier, I don’t know if they’re higher risk, but at least more reimbursed side of women’s healthcare indications? Or is the focus primarily going to stay on kind of that rejuvenation, wellness, the non-reimbursed cash pay side of women’s healthcare? Thanks.
