Jeffrey Cohen : Okay. Got it. On next question could you talk a little bit about some of the clusters out there OUS as far as direct and growth in say LatAm, Europe as well as Asia?
Dolev Rafaeli: Yes. So our biggest clusters of users have always been in Asia, China, Japan, South Korea — China, Japan and South Korea as well as in the Middle East. These markets are different from each other in the sense that in some markets, like, Japan and in South Korea, this procedure is covered by the insurance company, healthcare insurance companies. And we have been accepted — as a brand, we’ve been accepted as the leading brand in these markets and we do take a leading position in that market in terms of the market share of providers using this, where the other markets are either more aesthetically driven. So China, where it’s mostly cash pay or state healthcare insurance driven, like the Middle East, mostly the Kingdom of Saudi Arabia and the other countries there.
We have north of 1,500 devices in these markets and we had them for over 14 years. We started doing this 14 years ago, and the sales into these markets is broken into three components. We sell capital equipments, we sell new devices and that is used for replacement of existing devices and going into new accounts. We sell parts and consumables into these markets, which represents about one-third of the revenue, where the excimer laser requires gas and other components to maintain it. We’ve seen this — in these markets as well as in the domestic markets that the lifespan of these — of the XTRAC device has been, well, north of 10 years. We have devices that have been in the market for 14, 15 years, but it does require [indiscernible] gas and parts.
And the third component, which is something that we’ve introduced in 2021 is the placement of devices and basing on recurring revenue, which is started at the end of 2020 and grew to the extent of about $1.5 million in revenue annually as of last year. This was true for all of the Asian markets. One of the Asian markets, China, decided to move away from that, mostly because of their limitations on maintaining devices in the market that are not owned by them, but we continue having placement devices in Korea as well as in Japan. This allows users to commit to the therapy without having to commit to hundreds of thousands of dollars in the cost of the capital equipment.
Jeffrey Cohen : Okay. Got it. And then lastly for us, if I may, ask you a little bit on 2024. So firstly, I’m wondering how many therapy or devices you aspire to have in at the end of the year? And then secondly, no guidance on top or bottom line. You did mention growth. Are you referring to 5% growth or 20% growth or any idea there that you can now provide that does it for us?
Dolev Rafaeli: So let me start with the second question. The key initiative in 2024 is to — is to bring the company back into a growth mode and the recurring side, while maintaining the other components of the company. Now I’ll vote to parse the referring side. So the recurring side has three components. One, I just spoke about which is the non-US and as I said there are some there are — it’s an existing and growing market, very stable. We’ve been in these markets for many years. We are the leading brand. And — it’s very and I want to say easy, but it’s a very efficient transaction for us as well as for the distributors and the customers on that side. And in 2023, as I said it was — I mean, you can see this in the 10-K, but it was approximately $1.5 million for these markets.
The second component and you touched upon this is the TheraClearX. So the Company owns in terms of have acquired about 200 devices. So without having in that investment sits in the PEG and in the beginning at balance sheet and the deployment of these devices and getting them to utilization was the prime target of the changes we’ve made at the end of Q4 2023 when we decided instead of continuing to pursue cash-paying patients or cash-paying physicians or physicians who are collecting cash for procedures. We have pivoted towards going after clinics where the insurance reimbursement is the main target. And as I have explained in the third quarter earnings call in November, this is the goal. And we’re first going to be tracking through. Can we get these clinics to use the procedure?
Can we get patients are cleared through insurance? And then can we get on the other — on the other hand can we get the clinics to collect on the procedure, as they’re being reimbursed. As I said in my prepared remarks, but now we had several hundred patients submitted to insurance. We handle very high percentage of approval rates, very nominal non-approval rate. And now we’re on the back end of that, looking at them at providers of treating the patients, submitting for reimbursement and getting paid. And as I said in my in my remarks what we see is that, the average Medicare rate is about $120 and the private payers are paying them on average that amount, but it but in some areas it’s much higher than that. There are some areas it’s lower than that.
