Zach Fleming: Yes. I think you’re right, Niraj. I think you could imagine this product being used on any surgery. So if you are thinking about the OR, OR is a sterile environment, however, microbes do get introduced inadvertently. And so they want to protect that surgical margin, area where they’ve been doing the work for, say, an implant or any other type of surgery you might think and so they typically will wash that area throughout the surgery usually with saline and then they will close with a product like this, where it’s antimicrobial nature and cleanses or sterilizes the field that they were working in. And then that would reduce surgical site complication.
Ron Nixon: Just to add to that, we think the data that we have historically already gathered on this product doing a number of studies, one of which has not come out yet, but we’ll be out shortly that was used in the post-acute market. I think you’ll see that the applicability to that is going to yield lots of results because all of the surgeons are always interested in making sure to minimize the potential from surgical site infection. And so we believe that they have released that study that was a retrospective study that is on the focus on reduction of surgical site infections, not related to BIASURGE but to accelerate. And so it’s a perfect complement to accelerate, but it also is stand-alone because of just the impact it’s got on microbes in terms of its kill rate. So I think there’s just significant opportunity for this product as we move forward.
Niraj Gupta: So I guess the thought then is initial strategy is to leverage your existing presence with [Indiscernible] as you’ve done with the 40-some-odd locations. But as we think longer term, the strategy in terms of marketing and surgeon penetration is much broader than what you would — what you sell in today is for salary. Is that fair?
Zach Fleming: We’re learning about the product today in terms of who’s — who has the appeal for the product. And our impression is, yes, it could be better than Cellerate because it’s really for any surgery as opposed to those that maybe are just people who have trouble healing with Cellerate cell rate has a massive market, obviously, because they don’t — aren’t able to predict always which patients will have complications or challenges healing. So we’ve seen Cellerate be a tremendous grower because there’s so many patients that are benefited from it. And we think that BIASURGE is very similar in that respect that it’s going to complement the healing, it’s going to complement the outcomes of the patient. And so when you think about the doctor’s trouble of trying to keep patients healed post surgery, both these products serve a great purpose to do that.
They allow that patient to have low microbes and then increase the biologic activity to support the healing Cellerate. So it’s a nice one, two punch. You clean the area, and then you complement the healing with Cellerate.
Niraj Gupta: So 2 quick ones related to that. So one, on BIASURGE, you talked about rough pricing parameters per liter. Do you expect typical surgery would involve potentially more than one liter of usage?
Zach Fleming: Still learning, but yes, there are surgeries that will require more than one leader. And it’s typically based on size, but certainly, if you had a patient that was a revision surgery where there’s already an infection, that could be a surgery where they could potentially use some additional product than one leader.
Niraj Gupta: And then the final one was just thinking about bundling pricing and just kind of maximizing the growth, your tool bag is growing, but you’ve got like 2 outstanding products and Cellerate and BIASURGE in terms of kind of the data about the efficacy and whatnot. Could you just speak to like how does it impact your ability to more broadly penetrate the combined product offering by having both to go to market with? And what is — how does that help reinforce the value proposition accelerate as you think about ultimately where we are in the life cycle of that product relative to where it can ultimately get to?
Zach Fleming: Well, I think it just really starts more conversations because of the broad appeal, we saw this in the booth at Hip and Knee Surgery Conference. There’s just a nice starting point either product and then you can end the conversation with the other product. And I think when you’re able to broaden the conversation to meet the needs of the surgeon and the patient, I think that’s a good thing. So having [Indiscernible] it really talks about the antimicrobial action and reducing those microbes into surgery that then starts to [Indiscernible] once you finish that, then you want to start to support the healing and that’s where Cellerate would then enter the picture in the conversation. So I think it’s really beneficial.
And of course, for the hospitals, they really appreciate the sole sourcing of products like this. So they don’t have to go to multiple vendors in order to get these products. So it certainly helps with our strength in the hospital in our staying power because they then say, Sanara is an approved vendor. We have great products. They support the case as well, et cetera, et cetera. And so it puts us in more situations, more shots on goal.
Ron Nixon: Yes. And to add to that, Niraj, I believe that what we’re demonstrating not only with Cellerate, but any of the new products that we’ve come out, we’ve said from the very beginning of Sanara that we’re going to provide advanced solutions that are proprietary for our surgeons, our hospitals, our post-acute market everywhere we are, we want to provide unique solutions that are going to do 2 things. We say stayed the course on this from the very beginning, improve outcomes and lower costs. And if we can continue to do that and we demonstrate that with multiple products, we believe that the brand scenario will actually continue to expand where we get more and more confidence from whoever our customer is that — they know what they’re doing. They’re backed by strong research. They’ve got a lot of capabilities to be able to come in and impact what we do to achieve those 2 goals of the lower cost and improving outcomes.
Operator: Our next question is coming from Bill Brewster, who is an investor.
Unidentified Analyst: I wanted to ask a question just going through the efficient structure and how the business works, from an SG&A perspective, should I be thinking that commission like — the real question that I had at the core of it is what kind of operating leverage are we going to get on the sales base 3, 4, 5 years out? And I guess that the question that I keep coming up with is how should I think about how the commissions are paid here? And are they recurring commissions? Or are these commissions typically that are paid out and then sort of decline over the life cycle of a relationship with a hospital or a doctor?
Ron Nixon: Yes. So Bill, we don’t actually disclose any of the information on our commissions separated out from SG&A. But what I would just tell you is there are always going to be opportunities as we grow this business to think about the leverage of your SG&A expenses relative to the growth. So we — as we see more growth, you will see more reduction in — or what I would just say, improvement in efficiency from that but you’re — as we expand, as Zach mentioned, we were just sort of going into the 33rd state. As we continue to expand, you’re still going to be having a similar construct where you’ve got people that you’re paying in the field, there’s going to be a reward system for them achieving goals, which means commissions, and that’s just the way that, that will be moving into perpetuity but it doesn’t mean we might not be able to gain some additional efficiencies where we’ve also gained efficiencies by doing things that accomplished our margins continuing to go up.
