ENDRA Life Sciences(NDRA) - 2022 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - For Q3 2022, operating expenses increased to $3.4 million from $2.7 million in Q3 2021, primarily due to higher spending on TAEUS commercialization and ongoing product development [34] - Research and development expenses rose by approximately $660,000 year-over-year, while sales and marketing expenses increased by about $140,000 as the company expanded its marketing efforts [35] - The net loss per share for Q3 2022 was $0.05, compared to a net loss of $0.06 per share in the same period last year [36] Business Line Data and Key Metrics Changes - The TAEUS system is focused on accurately measuring liver fat for early assessment of non-alcoholic fatty liver disease (NAFLD), which affects over 1 billion people globally [8] - Clinical study sites have obtained 95 study participant exams in 2022, nearly doubling the number from Q2 [16] Market Data and Key Metrics Changes - The market for NAFLD is growing at an annual rate of 12% to 15%, indicating a significant unmet clinical need for accessible, high-quality noninvasive diagnostics [26] - The company noted that MRI is too costly and liver biopsy is invasive, highlighting the need for better diagnostic tools [27] Company Strategy and Development Direction - The primary focus is on the effective collection of clinical data to enable a successful US regulatory submission and strong global commercialization [39] - The company is enhancing its intellectual property portfolio, with 56 patents issued globally, and is pursuing potential licensing opportunities for its technology [12] Management's Comments on Operating Environment and Future Outlook - Management expressed a growing optimism in the market, noting that clinicians are increasingly aware of the metabolic disease and the need for effective screening tools [44][47] - The company is well-positioned to meet the clinical needs despite macroeconomic factors such as supply chain issues and interest rates [46] Other Important Information - A special shareholder meeting was announced to approve a reverse stock split to maintain compliance with NASDAQ listing requirements, with no capital raise associated with it [14] - The company is offering flexible sales options, including rental and lease options for the TAEUS system, to facilitate market entry [33] Q&A Session Summary Question: Concerns about the macro environment at conferences - Management noted a growing optimism in the market, with a realization that current measurement tools may hinder development [44] Question: Speed of future scans with the TAEUS system - The company is targeting 200 scans to support commercialization efforts, with ongoing support for clinical investigators to collect necessary data effectively [52]