Profound(US:PROF)2020-05-13 18:46Financial Data and Key Metrics Changes - For Q1 2020, the company recorded revenue of $1.6 million, a 6% increase from $1.5 million in Q1 2019 [7] - The net loss for Q1 2020 was $3.6 million or $0.25 per share, compared to a net loss of $2.9 million or $0.27 per share in the same period of 2019 [10] - R&D expenditures increased by $161,000 due to heightened spending on R&D projects and additional systems applications [7] - General and administrative expenses rose by $1.5 million, attributed to salary increases, bonuses, and costs associated with being listed on NASDAQ [9] - As of March 31, 2020, the company had cash of $61.9 million after closing an underwritten offering of common shares that generated approximately $40 million in gross proceeds [12] Business Line Data and Key Metrics Changes - The company has initiated its first two TULSA commercial sites in the U.S., focusing on treating various prostate diseases [15] - Initial patient feedback has been positive, with reports of minimal pain and quick recovery times [17] - The company plans to tailor its support program to fit the needs of different delivery channels, including urologists and imaging centers [24] Market Data and Key Metrics Changes - The company anticipates delays in achieving its target of 20 TULSA sites by year-end due to the COVID-19 pandemic, potentially pushing timelines by one to two quarters [25] - The Busch Imaging Center in Georgia treated 8 patients within the first two weeks, indicating strong initial demand [44] Company Strategy and Development Direction - The company is focusing on three primary market segments: urologists, imaging centers, and Centers of Excellence at teaching hospitals [18][22] - The strategy includes partnering with leading physicians and imaging centers to create TULSA treatment centers [19] - The company is adapting its marketing efforts to target independent imaging centers and urologists during the pandemic [36] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the pipeline and noted that urologists are open to learning about new technologies during the pandemic [32] - The company is actively holding webinars and educational programs to maintain engagement with potential clients [32] - Management believes that patient preferences may shift towards imaging centers rather than hospitals due to COVID-19 concerns [39] Other Important Information - The company has submitted an application for a Health Care Common Procedure Coding System C-Code for the TULSA-PRO procedure, viewing reimbursement as a three-year process [27] - Management is exploring existing codes that could apply to TULSA, with the potential for hospitals to decide on their use [28] Q&A Session Summary Question: Update on TULSA-PRO sales funnel and COVID-19 impact - Management confirmed that the sales funnel continues to build, with urologists open to learning about new technology despite the pandemic [32][36] Question: Patient preferences for ablative treatments during COVID-19 - Management acknowledged that patients may prefer imaging centers over hospitals for treatments due to COVID-19 fears [39] Question: Details on existing reimbursement codes - Management indicated that hospitals are evaluating existing MR-guided interventional codes, but specific reimbursement amounts cannot be disclosed at this time [48][49]