Antony Koblish: Well, in the same way that with reasonably level OpEx, over the course of the year and increasing revenue, we should be seeing operating income and actually operating loss and net loss decrease directionally over the course of the year. We expect cash burn to be doing the same thing. There is a little bit of seasonality in how our cash is spent with building of inventory and payment of incentive compensation, for example. But directionally, cash burn should be decreasing somewhat similarly to the decrease in operating income or loss.
Michael Sarcone: Thank you.
Antony Koblish: Thanks.
Operator: Thank you. [Operator Instructions] And our next question is going to come from the line of David Turkaly with JMP Securities. Your line is open. Please go ahead.
David Turkaly: Hey, good evening, guys. You mentioned the accounts using both are twice as valuable. I’m just curious, are you able to give us an update on how many of those accounts you have now? And maybe if you have a target for where you think that’s going to go in 2024?
Antony Koblish: Sorry, you were breaking up at the beginning, what kind of accounts were you asking about?
David Turkaly: Essentially how many are using both today? Like you mentioned, they’re twice as valuable. And then where do you think that’s going this year? If you could maybe throw out an estimate of how that could progress.
Antony Koblish: Yes. So probably about 50% of accounts are using both products. They may not be using them in the same proportion as we sell across our portfolio. There are some smaller hospitals that really don’t do one kind of procedure or another, and so those are just never going to convert. But the larger hospitals that typically do both hernia repair and reconstruction, we do have some of those that really sell primarily or buy primarily one product or the other, which means we’re just not getting to the physicians who are doing the other sort of procedure. So to the extent that we can get our reps talking to and pitching to those physicians as well, they just become more efficient. They can do all their selling in one institution rather than having to get in their car and drive across town, which means that they can be more efficient and effective.
So the goal is to get as many of those potential hospitals that could sell, buy both kinds of products up and running and buying both. And so at some point it will be closer to 80% or 90% of our accounts are buying fairly evenly across our portfolio.
David Turkaly: Great. And then on LIQUIFIX, I was wondering if you might comment on ASP and margin profile. I think I saw that the applicator can deliver something like 40 anchors or something like that per procedure. So I’m just curious how we should think about that as we look to this year and then beyond. Thank you.
Antony Koblish: Sure. So we haven’t disclosed the price point, the exact price point. It’s going to be similar to tackers and staplers, and the margin will be at or better than depending on the exact ASP that we’re able to achieve the rest of our portfolio. These are smaller dollar items. They’re really used only as single one even though they have 40 deployments, they’re only used a single one per patient and 40 anchors is quite a bit for these sorts of applications.
David Turkaly: Thank you.
Antony Koblish: Thanks, Dave.
Operator: Thank you. [Operator Instructions] And our next question is going to come from the line of Matthew O’Brien with Piper Sandler. Your line is open. Please go ahead.
Unidentified Analyst: Hey, this is Stu [ph] on for Matt. Thanks for squeezing us in here and taking our questions and congrats on the outstanding quarter. On the rep side of things, can you provide any additional color on the way that I think about is two different cohorts, one being the cohort before the sales force disruption and the other being post that disruption? Can you give any color on the productivity of each group? How quickly the newer reps might near the productivity of the more tenured reps? And is double digit productivity gains the right way to think about the group as a whole here in 2024?
Antony Koblish: Yes. So as I said in the prepared remarks, about three quarters of our reps have been with us for more than six months. So those would be reps that were preceding that disruption that occurred in the third quarter. So about a quarter of them are with us for under six months, or just about six months. What we’re seeing is that they are trending towards the same productivity metric that we’ve seen in the past of achieving breakeven, so covering their own expenses within that six months on average. And we expect that with the additional training that we’re giving them, with the greater breadth of our regional managers now, who manage fewer reps individually, that they will be able to at least achieve the sorts of productivity curves that reps have in the past.
Unidentified Analyst: That’s helpful. And then any color on the pipeline of additional GPOs that might be waiting in the wings, might we see another one of those here in 2024 and is anything like that contemplated in the guidance? Thank you.
