Profound(US:PROF)2021-03-03 01:57Financial Data and Key Metrics Changes - For Q4 2020, the company recorded revenue of $2.9 million, a 36% increase year-over-year and a 29% increase sequentially from Q3 2020 [14] - Total operating expenses were $6.1 million, up 14% from approximately $5.3 million in Q4 2019 [15] - The net loss for Q4 2020 was $7.5 million or $0.38 per share, compared to a net loss of $3.9 million or $0.33 per share in Q4 2019 [19] Business Line Data and Key Metrics Changes - R&D expenses increased by 4% to $2.5 million, driven by higher spending on clinical trials and employee-related costs [16] - Selling and distribution expenses surged by 79% to approximately $1.7 million, reflecting increased investment in the commercialization of TULSA-PRO [18] Market Data and Key Metrics Changes - The company has successfully established TULSA-PRO in the U.S. market, with early adopters achieving an average run rate of 60 procedures per year, exceeding initial expectations by about 50% [25] - RadNet has begun treating patients using TULSA-PRO after initial COVID-19 related delays [26] Company Strategy and Development Direction - The company aims to build a high-quality U.S. installed base for TULSA-PRO, targeting early adopters, independent imaging centers, and opinion-leading teaching hospitals [23] - The company is focused on reimbursement strategies, having submitted an application for a healthcare common procedure coding system C code from CMS for TULSA-PRO [28] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about near-term performance due to unpredictable COVID-19 impacts but is optimistic about long-term adoption goals for TULSA-PRO [32] - The company plans to launch Sonalleve in the U.S. later in 2021, following its humanitarian device exemption approval [9][32] Other Important Information - The company has changed its presentation currency from Canadian dollars to U.S. dollars to better reflect its operations [13] - As of December 31, 2020, the company had cash reserves of $83.9 million [19] Q&A Session Summary Question: Can you provide insights on the average installation cycle pre-COVID and its current status? - The average installation cycle is currently between 75 to 90 days, with expectations to reduce to 45 to 60 days in the long term [36] Question: Are all existing contracts installed, or are there more contracts being signed? - There are contracts signed that have not yet been installed, and new contracts are being signed this year [44] Question: What is the reimbursement level under the C code? - The reimbursement generally ranges from $11,000 to $12,500, depending on the type of institution [39] Question: What progress is being made in international markets, particularly Japan and Europe? - Japan is expected to be an important market, with new orders being received, while Europe is seeing increased interest and additional clinical trials [54][56] Question: How does the recent study on MRI for prostate cancer diagnosis impact TULSA-PRO adoption? - The study indicates a potential increase in MRI use for diagnosis, which could positively influence TULSA-PRO adoption [58] Question: What are the expectations for installations and utilization moving forward? - The company has a strong pipeline and anticipates continued growth in installations and utilization, with a target of over 100 procedures in the long term [66][68]