Steve Furlong: Thanks Adam. Yes, we’ve been communicating that with the transition to our new contract manufacturer and the increased percentage of total revenue that Treatment Session will represent that margins will continue to improve as we head into next year. And so, we’re definitely comfortable with that, I would say, mid to high 70 percentage. So we are starting to see improvements with our contract manufacturer in terms of efficiency and overall cost. And so, yes, I mean, ideally, we’d crack that 80% number, but that’s probably late Q4 of next year and to some point in 2025.
Adam Maeder: Very helpful. Thank you.
Operator: Thank you very much. Our final question, please stand by. Our final question comes from Daniel Stauder of JMP Securities. Daniel, your line is open. If your line is muted, please unmute it. Daniel?
Daniel Stauder: Yes. Can you hear me?
Operator: Yes, sir.
Keith Sullivan: Yes.
Daniel Stauder: Yes. Sorry about that. So, thanks for the questions. I just wanted to ask about revenue per active site. That metric was up nicely this quarter, back in that high $11,000, which I think is the highest it’s been since late 2020. Could you just remind us how you think about that metric? Any broad expectations as you exit 2023 and enter 2024? And then do you have any near-term or mid-term targets? And what’s the core level here as we think about our model? Thanks.
Steve Furlong: Danny, it’s Steve. Yes, we view that as a very key metric. And so getting close to that $12,000 per site number is nice. But again, if we look at the consumable segment, even with the 18% increase in utilization, they’re still not using the systems near capacity. And so we’re going to continue to push that number. And really, the only headwind with that is the increase in overall sites. And so if we sell systems, second or third systems into a site, it definitely helps us more as opposed to just selling into a new customer. So there is a little bit of a balance, which shouldn’t be viewed negatively. But we would expect to see that metric continue to increase and just keep going. Like you said, it’s the highest since 2020, so that’s a good sign, and we do expect it to continue.
Daniel Stauder: Great. And then just one follow-up on cash usage. Could you give us any more color here on your cash burn rate as you exit 2023 and look to 2024? You have that additional cash infusion from your credit facility. You also noted some plans to expand marketing programs. Should we take this to mean that cash usage could modestly increase from here? Or what’s a good way to think about it as we [technical difficulty].
Steve Furlong: Yes – no, that’s a good question, Danny. And everybody saw we did draw down the capacity that we had with our debt facility. But there aren’t plans to increase operating expenses at this time. We’ve been communicating since last year that our goal is to hold operating expenses consistent from 2022 through 2024, and that’s really where we’re targeting. I will say our cash burn was higher this year than we were forecasting. We did have the conversion of $6 million of Greenberg AR into a senior secured note, so that impacted cash. We also had the transition with the contract manufacturer. And contractually, we prepaid for about $3 million in inventory this year that we’ll receive credits for as those units are delivered in 2024.
So my expectation is our cash burn is going to be reduced I would say – significantly maybe a strong word, but nicely next year. So we will exit Q4 relatively flat from a cash flow breakeven perspective. But that’s normal. Our highest burn quarter is Q1. Q2 and Q3, it normally flattens out a bit into the single digits. And then Q4 with our highest revenue quarter, depending upon timing and collections of orders in that last month, it is our lowest burn quarter of the year. So what we end this year hopefully is the high point. And then we’ll continue to reduce it and get to that cash flow breakeven number by the end of next year.
