And primarily, we’ve had a phenomenal presence and a market share in Germany. And I expect in Germany and Austria and in Switzerland, that that’s going to be — those are going to be significant for LENSAR and to the extent that we can get an approval there, as we’re hoping in the back half of the year, we’re looking forward to moving into those markets very rapidly. I think you’ll also see some business for us later this year in the Southeastern Asia, albeit in a much smaller market but where we had a decent market penetration into like Hong Kong, Taiwan and into perhaps the Philippines. Again, smaller, but you should see some presence there from us later this year.
Ryan Zimmerman: Okay. Great. And then just expectations on when the sales force is at the level you want and when you think productivity from that could pick up?
Nicholas Curtis: Yes. So we brought a new Vice President. We brought a Vice President of Sales in December, and he’s been great, and it’s relieved some of the responsibility for me directly in that regard. And so it’s allowing me to leverage and leverage myself a lot better there, and he’s doing a really nice job. We’re also bringing in some new processes to help us, let’s say, manage the leads and the interaction between marketing and sales. And so we’ve got a couple of new practice development as well as in the digital marketing area that generate leads for sales. I think we’re starting to see some good activity in that regard. Expansion of territories. We’ve expanded two territories thus far. And you’ll see some additional as we get later in the year. We’re doing — we’re being very conscious here of making sure that we both manage the growth and the expenses at the same time.
Ryan Zimmerman: Yes. No, makes sense. And then Tom, I think you were very clear about margin dynamics this quarter, just given the proportion of sales and outright sales, which was really nice to see. Maybe just you talked about the guidance, 50% gross margins for 2024. But from a pacing perspective, kind of how do you think that plays out through the year, if you have any kind of crystal ball there on the recovery in margins and also the uptake of more of the consumable or razor blade portion of the business?
Thomas Staab: Yes. So I think what’s — as Nick mentioned, the important thing for us, Ryan, and thanks for your question, is that we manage growth and use of capital, which or sort of opposite ends of the spectrum. As things go, we expect probably the margins to be a little higher in the first quarter because as a seasonal business it’s a little harder for us to place as many systems in the first quarter as it is in the subsequent three quarters. But as you go, that’s going to level out and be 50%. I think based on the expectations of volume and certainly with the expectation of an EU clearance in the latter half of 2024, then you’re going to see us really hitting our recurring revenue in the razor blade piece of our revenue, I would say, in the tail end of ’25, really going into ’26, and you’re going to see an increase of our margins.
If we continue to be as successful as we are, obviously, you’re going to have a governor on those margins with system sales. And we have totally changed the paradigm in the United States in regards to placements of systems versus sales of systems. And you’ve seen that in 2024 or 2023, just with the amount of systems we were able to sell in a very, very difficult macro environment for capital equipment purchases. So we fully expect that to continue. And with these time and motion studies just kicking off and the cross- pollination between physicians, we’re hopeful that 2024 is a big year for us in regards to system sales, which will put a governor on the margins and that we move forward in 2025 and really see the recurring revenue to kick in.
Nicholas Curtis: The other thing is — can I just — can I mention one thing here because it’s important because it takes an account in the neighborhood of 60 to 90 days from the time that they install to get trained and begin to ramp up in the practice. This is where you start to see like towards the — because we did a lot of systems in the last quarter it won’t be until we start to get really into midyear, you start to see the sort of the fruits of those earlier installs, and so it kind of rolls. And so to Tom’s comment, the more systems we sell has a drag on gross margins initially. And then 90 days later, you start to see those accounts begin to generate higher gross margins, if you will. And this is kind of like rolling. And so I expect in the latter part of the year, you start to see those things begin to improve. And that if we sell a bolus of lasers again in the second half, you start to see that. It’s a little bit rolly if you will, but starts to trend up.
