Profound(US:PROF)2020-11-09 04:45Financial Data and Key Metrics Changes - For Q3 2020, the company recorded revenue of $3 million, an increase of 337% from $682,000 in Q3 2019 [8] - The net loss for Q3 2020 was $8.1 million or $0.43 per common share, compared to a net loss of $6.3 million or $0.57 per common share in the same period of 2019 [10] - Research and development expenditures increased by $1.3 million compared to Q3 2019, attributed to higher spending on materials and R&D projects [9] Business Line Data and Key Metrics Changes - The company is focusing on the commercialization of TULSA-PRO and Sonalleve globally, with net proceeds from a recent offering expected to fund these efforts [11] - The management team has been strengthened with new hires in marketing and market access, aimed at enhancing patient recruitment and reimbursement strategies [15][16] Market Data and Key Metrics Changes - The U.S. market entry strategy includes traction among early adopters, independent imaging centers, and opinion-leading teaching hospitals [17] - The Mayo Clinic and University of Texas Southwestern Medical Center are now offering the TULSA procedure, indicating growing acceptance in top-tier hospitals [18] Company Strategy and Development Direction - The company aims to drive significant adoption of the TULSA procedure by bolstering its management team and clinical development programs [14] - A three-pronged approach is being taken to target early adopters, imaging centers, and teaching hospitals to enhance credibility and drive long-term growth [41] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the near-term adoption rate of the TULSA procedure due to COVID-19 uncertainties, but remains optimistic about Q3 performance [23] - The company plans to extend clinical trials to support additional studies and build a robust evidence base for TULSA [22] Other Important Information - The company had cash of $110.4 million as of September 30, 2020, providing a solid financial foundation for future growth [11] - The management is committed to increasing investments in R&D and sales and marketing over the next 12 to 18 months to support growth [59] Q&A Session Summary Question: Updates on reimbursement for TULSA procedure - Management indicated that newer hospitals are considering recommendations for reimbursement codes, but no specific updates on patient numbers were available [26] Question: Pipeline for new sites - Management suggested that it is possible to reach up to 10 sites by the end of the year, depending on COVID-19 conditions [28] Question: Average procedures per week per imaging center - The number of procedures in Q3 was higher than in Q2, with expectations of increased utilization per site [34] Question: Payment per procedure model - The company has shifted to a recurring revenue model, with agreements typically at $7,000 or higher per patient [37] Question: Long-term sales funnel and site interest - Management expressed confidence in the sales funnel, with interest from imaging centers, teaching hospitals, and specialized urologists [41] Question: R&D expense outlook - R&D expenses are expected to increase as the company invests in clinical trials and product improvements [47]