David Fischel: Sure. Hi, Frank. Good morning. So, you’re right, –which is a German company, and is our contract manufacturer and partner in the MAGiC catheter. They are — the ones that are ramping up the manufacturing capability for MAGiC. They’ve obviously been able to — in the past manufacture 100 — 100 of the catheters that were necessary for the regulatory testing. And we are working with them to make sure that they are in a good place for manufacturing for the commercialization, we want to have several hundred catheters available in inventory finished goods inventory upon regulatory approval. And so, we’re working with them to make sure that is possible. And then as I think every manufacturing scale-up is obviously an effort and requires attention and it’s difficult.
These are complex devices, class three devices with significant regulatory burden as well. But as is a professional organization, they have many, many years of experience manufacturing thousands upon thousands of similar catheters. And so, I think we have a good partner there that has that experience and has the resources and infrastructure to be able to scale as appropriate. From a commercial team perspective, I think I’ve mentioned in the past that we currently operate, our commercial teams operate in some ways a hand behind their back. We typically have one clinical support person, one sales person for every three or four hospital customers. Many of our competitors in the EP space have one sales rep per hospital, if not even more. And so that is something that is structurally we’re at a weakness to, and going to that type of model with our current revenue structure would be not financially sustainable in the long term.
And so, we could increase revenue, but it would come at the detriment of the bottom line. And so, as we bring the MAGiC catheter to market and we shift from making on average roughly $1,000 per procedure to making several thousand, $3,000, $4,000, $5,000 per procedure, that does allow us to change our coverage in the field and to enhance and increase our sales team fairly significantly. And so, I think we’ve mentioned in the past, and that still is a plan that as MAGiC comes to market, we will move much more towards the model of one person per hospital account. And that can be done in a very financially sustainable fashion. And so, it obviously carries benefits both to the top line and to the bottom line to do that.
Frank Takkinen: And then maybe for my second one, I think we touched on a lot of these individual points, but hoping you could cover it in detail start to finish, but looking to get an update on the capital markets or capital equipment sales market. Clearly, it’s tougher and a higher interest rate environment, but what are you hearing out there right now for the orders that are in the funnel hoping to convert soon? And is there any inclination for them to wait for the mobile robot, or is that really not quite on their radar yet?
David Fischel: I think that we’ve done a relatively good job in bifurcating hospital awareness between the Genesis system and the mobile robots. So, there are a few cases where that has come into play or where we’ve discussed it proactively with a hospital where it makes sense. But generally, I think we’ve done a reasonably good job in bifurcating that awareness and channeling the people who are appropriate to channel to the Genesis system. I think we are — it is still a headwind macro environment overall. So, we’ve been operating now for a few years in this macro headwind environment. That said, I think we still have a huge amount of opportunity ahead of us. We still have a very small market share, and so we’re able to find opportunities and I’d say that we are advancing multiple of them and kind of through late stages of contract negotiation. So overall that feels good that we’re able to make progress despite that headwind environment.
Operator: Alright, are no further questions at this time. I’d like to turn the call back to David Fischel for closing remarks.
David Fischel: Okay. Thank you all for your questions. We appreciate your continued support and wish everyone a healthy and peaceful end of the year. We’ll work hard to end the year on strong note, and look forward to talking in soon. Thank you.
Operator: This concludes today’s conference call. Thank you for joining. You may now disconnect.
