Joseph H. Capper: Yeah. So just a little more clarity on that. And I think I mentioned my commentary that not my first, but not my highest priority for use of capital at this stage of the company’s evolution. However, it was kind of opportunistic. We got real close to the mandatory conversion, few months ago. In fact, we were above the $7.70 mark for several days. As you may recall, it requires us to stay above that for 20 out of any 30 consecutive trading days. So it did not trigger, but it prompted us to start having conversations with Hayfin as to what is your long term intent with the common once it converts. So they were pretty transparent that, it’s typically not their approach to hold that stock for a long period of time and would look to probably exit it in some organized way.
So it was really, that’s how conversations evolve. It was very opportunistic. Why we didn’t buy all of it. We only bought half of it. Frankly, it was just to keep some dry powder because we are looking to do other things with the business. And they also agreed to a 12 month lockup on the other half of the of the equity, whether it converts or not. So we felt like any potential disruption as they exited the position was limited, quite a bit because of our repurchase of [Hayfin] (ph) agreements to lock up the other half for the time being.
Carl Byrnes: Great. Thanks. That’s very helpful. And then segueing to EPIFIX in Japan. Do you have any updates with respect to the number of docs that have been trained to use product?
Joseph H. Capper: Well into the hundreds, I think several 100, I think about one point you may still have number of 500, it continues to grow. We’re getting nice feedback from the physicians. There are several physicians have used the product in various procedures. They have reordered the product they have gotten paid on the product. All these are very important steps when you’re talking about developing a new business in a new market. Want to remind everybody that this is a first of its kind in the Japanese market. So this will take time to develop and get positions comfortable with how to use it and as importantly whether or not they’re getting paid for it. So we’re seeing pretty significant percentage growth on utilization, but off of a very low base, right? So, we’re pretty optimistic about what this could look like a few years down the road, but again it’s very early on.
Carl Byrnes: Understood and congratulations again. Thanks.
Joseph H. Capper: Thanks, Carl.
Operator: Thank you. Our next question comes from the line of RK with H.C. Wainwright. Please proceed with your question.
Swayampakula Ramakanth: Thank you. Thanks for taking my question. This is RK from H.C. Wainwright. So a couple of quick questions. And looking at what the total revenues for this quarter and comparing it against last quarter, it’s kind of similar numbers. And I see that the guidance you gave is higher teens. So what’s the push hard pull on these numbers just on at a high level on the business? And also trying to see what’s the probability that it’ll get into lower twenties, based on what you’re seeing?
Joseph H. Capper: I think that the first part of your question was what happened from Q2 to Q3. Your comment was relatively flat sequentially, which is a home run for this business, right? As you know these types of businesses typically have a seasonal decline in Q3 which we did not experience this year. On the contrary, we were able to tick the business up a little bit. We also had one less work day so seasonal decline, one less workday and flat to up is a home run, in my opinion, in this business. I think the second part of your question was, why would we not continue to see something in the low 20s as we move through the rest of the year and into next year. The comp for Q4 2022 is by far our toughest comp for the year. The revenue was, clear in a way the highest revenue that the business experienced last year.
As you recall, that was the quarter in which we launched two new products in the surgical setting, and revenue was somewhere around $74.5 million. So, double-digit growth off of that would be a meaningful number. We think we’re well positioned to do that. We think the business will close out in the high teens, if not 20%, but still a pretty good hill to climb to get those numbers. And as you know, fourth quarter can be disruptive depending on how holidays fall, etcetera, etcetera. We think this year we have great momentum going into the fourth quarter. Clearly, our sales organization is executing better than other organizations in the market. We have the strongest leadership team than any other company in the marketplace. So I think we’re well positioned to continue to drive that momentum.
We’re launching another product, in EPIEFFECT into the private office segment now takes time to ramp up any new product. So that rollout will happen over the next two, three quarters before we see full effect of it, but we could get nice impact from that in Q4. So, look, could we get there? Maybe. But these numbers are pretty darn good numbers.
Swayampakula Ramakanth: Yes. I agree with you. I’m not — I was not negative on it. My comments are not supposed to be negative. I was actually trying to see what else is there that can actually push this higher. Anyway thank you very much for that answer. The other question I have is regarding seeking opportunities outside of just introducing another product in the fourth quarter as you have previously said and just — and you also just made some comments on it. But in addition to that, given what you’re doing in terms of trying to do this buyback and keep some powder ready. What sort of opportunities would you be looking for as you go into the 2024 and even into 2025?
Joseph H. Capper: I think you’re referencing potential inorganic, opportunities. And as I’ve indicated on a couple of calls now, strategically, we have determined that expanding our skin substitute product line to include non-human skin subs, xenografts and synthetics make a lot of sense. If we add those products to our portfolio, we double our total available market just in the US, because unfortunately, amniotic history is restricted from use in certain market segments. So that’s a priority for us. And it also gives us, more opportunity within the hospital — within the surgical suite, which is another focus area for us. So products that allow us to move in that direction at an accelerated rate are ones that we would prioritize.
And then after that, anything within the wound care continuum that will allow us to, a, broaden our offering, but b, leverage our current, operational infrastructure, both commercial and internal infrastructure. So you can imagine what those products might look like, but I think our highest priority would be the expanded skin sub line. Now, I’ll also tell you that there’s internal developments as well, right? We continue to develop, placental derived allografts and we have a rich pipeline for those, as well as a potentially internal development of xenografts. But we’re also looking externally because as you know, that could accelerate the plan. And in my opinion, that’s the only time you do acquisitions like this if it will accelerate your strategic plan.
Can’t just be done for the sake of doing them.
Swayampakula Ramakanth: Thanks for taking all my questions.
Joseph H. Capper: Thanks, RK.
