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Motus GI (MOTS)

Participants
Paul Arndt LifeSci Advisors
Tim Moran CEO
Andrew Taylor CFO
Mark Pomeranz President & COO
Matthew O'Brien Piper Jaffray
Kyle Bauser Dougherty & Company
Steven Lichtman Oppenheimer
Jeffrey Cohen Ladenburg Thalmann
Ben Haynor Alliance Global Partners
Call transcript
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Operator

Greetings and welcome to Motus GI Fourth Quarter and Fiscal Year 2019 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator instructions].

As a reminder, this conference is being recorded.

turn LifeSci over Advisors. to Paul your like of Arndt now the to conference host, I'd Please ahead. go

Paul Arndt

Thank you, update GI. of operator. Executive Mark us the for Pomeranz, And are Officer; thank you Motus company Chief Financial fourth everyone Andrew GI President Taylor, quarter Officer Moran, and Motus XXXX Tim call Chief Representing the today. Chief for and joining Officer Operating

subjects risks only results opinions you these are opening a statements These cause statements the note turning statements could forward-looking call remind uncertainties as this actual of company. Before minute differ. that Please I take to like to call. and the our about that management date and reflect their to this over call would of remarks, for forward-looking to webcast that conference contain to will the

We an will XX-Q results statements or the materially or our the in cause that or results these recent X-K implied publicly light discussed forward-looking could any revise future of release to are our forward-looking statements in on differ revisions detail new outcomes with information greater to to on in those Factors reports in Form periodic not Form of obligation events. or undertake filed XX-K filings expressed other SEC. by and such from and actual most

GI. of I'd now like to Moran, over Tim? Motus to turn CEO the call Tim

Tim Moran

our for we'll our financial before fourth to the providing earnings for remarks, over Paul afternoon, by for turning review for XXXX Thank us everyone. end QX At good to its the our call and up today I you Andrew the you, update session. of quarter. to the would prepared Thank call. business call open a Q&A start results like joining

today update three points. will business focus key My on

has responding and in resources. commercial And in new reference an of to these we the make opportunity and current a market on third, to I we're First, streamlining created capital support by COVID-XX we large organization manage as cost elaborate the unprecedented hospitals points. System being need in expansion. will and healthcare leading centers to of our crises each unmet we our for efficiently overhead key number placed Pure-Vu market key reality that the our potential more broader remain intend financial reducing the

In bring the quarter technology the the for stage by to the we're our Pure-Vu US. business new program the pleased I'm fourth success we This our System our in of key revolutionary a XXXX, launched the initial marks point early as market. we commercial for and seeing inflection of

System of in We can capabilities positive impact expected market the Pure-Vu on have its as colonoscopy multibillion-dollar awareness medical the community. care throughout a grow significant the patient

our go strategy. pain. commercial and raised severe undiagnosed clinical ultimately or our focus, abdominal G.I. factors In lower conditions efforts focus on market order as economic including need, initial to several we to a an base, anemia market extensive principally optimize bleed, for enacted such and critical clear colonoscopies, infection assessment emergency completed benefit We that hospital reimbursement

statistics. There key procedures an that typically procedures US colonoscopies are but each in diagnosis. nor context So performed are elective, year few screened offer These require they X.X me let not greater are estimated a immediate share inpatient hospitals.

study approximately colonoscopy. XXXX prior inpatient their prep in a of at new Clinic demonstrated X,XXX the significant in was terms that included Cleveland experienced the published XX% need, patients bowel that inadequate In unmet study conducted the the of to

program. critical leading brand hospitals, physician and tool and physicians strategy need, supports to during designed physicians rapidly Pure-Vu To as dialogue to of Pure-Vu a GI safely allow procedure generating address costly and eliminating our commercial The to this among the awareness universal execution unmet thereby the GI validating colonoscopy building we [ph] delays. hospital in System physician our

scenarios being centers training on for making cases. to with right focused Pure-Vu and sure the clinical right providing utilize used at are the appropriate physician the we We and right are and the

the During sales product through objectives. our the work of with against regional or process I I for we and to and to committee third analysis quarter target pleased call, am our pipeline including set value and of gain build evaluation hospitals, awareness of the are backlog Pure-Vu back national executing quarter further clear begin that hospital in purchasing each the objectives fourth market. network, expand share these

Pure-Vu Day initial possibly longer process depending as on are hospitals current expected. entire months hospital XXXX, timing of the moving sales the the [ph] prominent is sales approximately six in several Centers. Clinic, ranging to October including than the States. our and of USD as Medical more These Cleveland on from complexity Texas, the Since four major complete now UCLA, or United we've through our Each process hospital rank centers the systems XX in system such launch University in Based include the to top institution. of of placed GI experience the these the

final hospital would Pure-Vu including on Value product a is towards through evaluation; sleeves now the think pending the three, approval or two, Analysis Value complete now repeat to and and the Analysis is the group as progressing is Committee purchase purchasing one, stages approved continuum basis. the this has Committee and I purchase disposable on-site begin purchasing of hospitals of evaluation various about each in the currently

in in we rejected a for also single been early hospital our targeted launch that been and not analysis we evaluation for although hospitals value have are had encouraged committee the by by have submitted our all approval. fact approved of in Additionally that the

cycle hospital our vary their our widely capital the internal with budget to Pure-Vu which institution. workstation, relates by it capital around can customers we're working of purchase As

monthly of repeat success purchases delaying said we program mentioned are disposable business a lead hospital drives model the ultimately alternatives outright rental of utilization through sleeves. The Pure-Vu is not offering while long-term That process. system driving previously purchase built repeat we our our work which I capital of the simple of four conversion on As workstation. purchase we are as to the

hospitals hospitals, our includes we of our driving the being for not at terms critical In hospital sale the and Pure-Vu Center, a Pure-Vu we our is evaluated, are placement. to hospitals. that numbers addition We Mayo have this success. of of game It's Of prominent and approach as repeat established we we sleeves. every hospital at satisfied and is all remind do thoughtful Clinic has and employing a each want customer as which utilization placements NYU these initial a Medical evaluation disposable can sales pipeline well-trained team ensuring our in strong everyone upcoming three initial to particular Northwestern our strategic GI at many I about University scheduled as evaluation. to rushing to note see where

centers market over establish key of long-term and which central growth. will growth become to step our Our to a a sustainable strong Creating building first component critical goal is time. a this foundation reference is

In on terms in upon target XX strategy monthly to approval of end, driving initially expand than more GIs basis. and QX on is To Pure-Vu utilization, to additional three GIs two that a then the we system. to to physicians I our report that trained pleased per hospital am

to now moved upwards is three are We early these from that the importantly, to signs positive our have initial believe system. earlier More working. GIs Pure-Vu using of that the our sites XX GIs two strategy

X time procedures up to month. to customers XX expect we initially purposes, modeling ramp Pure-Vu system per to approximately over For

commercial few a share and to want updates. related I product additional

prep In caused First post unit order to the the of let procedure at utilized manage the remarkable order was conducted procedural quarter expedite by The this physician valve with situation, shows intensive the case. critical using the in admitted me bedside shot in any two-year without Pure-Vu procedure that past the [indiscernible]. was to care share unit. Pure-Vu intensive the conducted hemorrhagic male care this was A story the system. to

Pure-Vu entering Upon use which the the blood for [indiscernible] worked physician which [indiscernible] allowing obstructed perfectly, utilized of excellent the he visualization. mucosa indicated at time the were by the

As a stop the The the Pure-Vu the the time out conclusion helped was in sources than room. need associated able identify the for The therapeutically after the angiography. and emergency ICU avoided as lower physician's G.I. prep was patient. the was well system massive less with hours bleed XX a transferred bowel presenting as result patient extra that of treat he and bleed to of

value to market. the This we is brings that believe Pure-Vu the

world intervention. therapeutic be to receive where cases to physician critical continue We real our these used system encouraged perform enables to the

product a development that updates perspective and from market I Next, have two provide. expansion like to I'd

week our making and disposable it are announced commercially First, that estimate Pure-Vu Europe. be all received last of approximately meet to in we that as performance annually safety potential it the the sleeves market largest system. a for we for and system. system conducted of for is X.X significant in the opportunity regulatory This Mark there approval million approval one This second-generation requirements inpatient the colonoscopies launched we Europe means CE

Receiving is strategy in an Europe. are now place commercial strategic us. distributors have medical With operations partnership the access able companies opportunities that CE potential further mark approval for across commercialization milestone established our with important this device enhanced in and to we

GI is United in the States. develop GI approximately it of the and XX% of need relates in to which treat Next occur rate we're are allowing technology. The at the view our removing colonoscopy system bleed upwards seeing [indiscernible] the in as of physician to Upper the potential about use occur this XXX,XXX rate of during future using ability compelling that mortality from year a field lower terms of in very using significant upper core repeatedly our stomach a new a condition is Pure-Vu and physicians opportunities Multiple GI the of endoscopies. have bleed. inquired the per find Pure-Vu esophagus the it cases

use we capabilities Pure-Vu can cases. of believe and safe GI during this painting potentially upper the system adapt effective for We

We product to this our exploration, opportunity existing while an requirements relationship. the in pathway, are regulatory early market, and physician could and actively the we sales our we're leverage team be exploring believe

area. updates in We will provide this additional

on to runway build Finally our allow of execute shareholder on GI proactive Motus I and to well to the extend implementing continue our address long-term to we're impact response the the business as as pandemic us aggressive COVID-XX want value. cash and plan,

technology, colonoscopies majority implemented reported say team, our have with that have the use we to enabled we all pleased contact successfully of rules hospital While prohibit Through nonessential am I Pure-Vu maintained customer. sales including remotely. that several of the visitors continuous

and push operational. caught patients. to near-term disposable both the the in as the appropriate the our for resources to inpatient we be Additionally, next situation customers treating COVID-XX sleeves inventory build our will of towards workstation hospitals months do support manufacturing continue colonoscopy disrupted we expect partners several a and of In also fully flow

the near-term a on basis be on We analysis as new reviews committee be postponed purchase hold. anticipate could likely are of advancement value and hospitals at put hospital device limited placements decision may

on more impact ability provides new scheduled That an this disruption is it said, Pure-Vu to utilization the to have our process recognize to discharged While our we complete more predictably believe means pipeline. inpatient remember it colonoscopies will important of hospital evaluation system to allowing patients be in begin we that a quickly. the

assumption a execute our The announcing regional execute the taking and plan market valuable hospitals by national role decisive actions place hospitals. we to large our that to second immediately by driving the successfully upon plan. the the aside the circumstances careful on we play impact plan their the end expected will with into This am based taking strategy business and in allow current can our I quarter. will across US today completion are us Pure-Vu of commercial technology will After unprecedented that consideration, continue environment

through financial material our spending. Significantly burn by internally reduce our This project is reduction at forecasted expenses departmental related XX%. reducing XXXX cash and to a expected by approximately operational extend runway program

bold and related in labor reduction non-labor operations. material make and will our expense US We Israel

all but headcount decisions, reduction very that will be significant by also to our are and also across our a reductions sales organization. customer our XX% We ensure necessary marketing and in departments we with protect These including reducing shareholders. approximately our business, difficult

with Pure-Vu customers the needed us our online, build reducing cash we large to come time for helping our believe we in gain hospital a this will extending market. very burn By continue back and our foothold runway,

demand commercial While be hospitals, Pure-Vu focus organization generation developing centers reference and not we'll leaner, which national our We'll our regional driving influence Pure-Vu cases they continue volume change. major better our top more are our they gets the exposed more true the are with is see the value physician to experienced The able clinical priority. that to, of technology. and on procedural to will their at focus the and

sleeve monitoring our we utilization and back addition and pipeline where closely In key through to work sales process be physicians approval, are will will already repeat we'll of complete be of and targets strategically metrics trained and the the engaged. seek The we procedures. performing account number

strategic look and of us will our necessary ahead this foundation believe allow over accounts of technology we for enable time. we and to continue to approach the an alternatives as build Finally, validation array

I Andrew will Andrew? fourth now to turn the call financials, quarter our over discuss to

Andrew Taylor

Tim Thank joining approximately of us We to quarter sale thank available fourth and first sales you, you, for XXXX. related the today. the Pure-Vu, reported which everyone $XXX,XXX for revenue October became in from for

earlier, the ramping hospitals at up across mentioned continue system and placements leading Tim we As of are gain to the US training GI. new

the of through at period we're back these hospital purchase However, the evaluation centers the process majority yearend. working elements under an of operating and

loss The expenses For share of stock-based of compared diluted a million XXXX last approximately XX, approximately of $X.X to the for loss the of loss expenses million principally non-cash a compared a $XXX,XXX fourth $X.X XXXX. $X.XX net December share year. quarter net of of three XXXX, related $X.XX to ended months reported diluted the of per we per to or net same non-cash same period $XXX,XXX for included period compensation or

per stock-based year share period the loss loss a December compensation million for same net $XX.X $X.XX of last approximately approximately related $X.X of principally to per to we $X.XX XX, The share included XX, net principally stock-based or compensation the XXXX of warrants related expenses million to loss ended year. expenses diluted to of year net non-cash and $X.X million ended expense XXXX. compared For non-cash diluted December $XX.X or of for reported a million a compared XXXX,

we requires until XXXX. an into loan interest During followed secured December $X through by payments the Bank. million of XX, December with Valley The monthly Silicon interest loan term only term payment principal XX, entered monthly and quarter, XXXX

terms the Securities to the loan and found material Commission. Additional can Exchange filed in be XK with related our

cash cash, December approximately We investment in as $XX.X million and XX, of reported equivalents XXXX.

beginning This quarter internally cash organization are to strategic we during the expected taking burn quarter, approximately with our of business normalized the XX% new to our action our than taking implemented be noted across the important plan reduce of less anticipated to Tim commercial previously with is third As objective. forecasted impact the quarterly as costs rate. to be minimal second effect which is

liquidity with anticipated into this is reduction plan Silicon investments place, be Valley our into cash, cash will fourth XXXX Once and equivalents ensure late cost our believe in and we to requirement Bank compliance sufficient our cash covenant quarter XXXX. meet

now the Tim. And back call to turn with I'll that, over

Tim Moran

the key Thank and for my need I progress We're you, I want responding remains we solid launch crises takeaways. Andrew. in by efficiently capital and overhead COVID-XX unmet system. to conclude this the where commercial of resources. manage There US our substantial our the stage organization began market are opportunity business to current costs our with update to and initial large Pure-Vu reiterating three making more a streamlining

substantial the and created, speaks advantage for technology we patient We volume the Pure-Vu significant the we our response positive care, becomes this more that bullish in world. metrics we market. hospital the believe these with believe and utilization. from in health hospitals the remain are GI mover about COVID-XX the about We impact positive receiving terms of system closing, have some of compelling have can resource first in even economic In the critical We leading and the pandemic. opportunity improved

requires leadership, remaining the that acting to while in immediate situation urgency external we're steadfast to creating adapt with value. unprecedented shareholder an with while commitment faced we're While intervention long-term our and circumstances

would Operator? to up for like now questions. call open I the

Operator

of today ahead. question Please O'Brien from Jaffray. instructions] comes [Operator Piper Our first Matthew go

Matthew O'Brien

the start results was for just good. QX Tim,

bit bit up but expecting stronger, like caught sounds to tend got know were some analysis. be more capital you I little yearend a we back it a purchases little in think I

processes some You’ve other there.

placing what can that the in was So talk you about QX some saw as specifically of gating factor far as Pure-Vu?

Tim Moran

you purchasing see these in value I the know internal analysis at that whole line make then committee that QX, look a I to really hospital say processes made decision. from go with progress the process did we final would typical the through is If we've the in that what on we work

that a getting always is Motus handful of with approvals the done. in to there hospitals are G.I. in addition dealing So priorities these

the through will full purchasing that in have feel say being we process and the call if I back goal would able accounts it XX-day is there to close move Matt. with earliest you very of and like I in ordinary been and roughly good customers. we've continuing period So progress that now nothing are started are that the getting made out the to others across becoming here October

months we pretty around XX timing is So think roughly accuracy. really guidance terms gave the much in sales I that process of the nailing of

Some from to the the but the I kind can be six a a IDNs hospital probably roughly is of months four to think bureaucracy process way work think complex of multi more this larger little from of the ultimate to till bit about perspective, purchase. through beginning

Matthew O'Brien

those pointed fallen of sounds And being hospitals the XX far off it like out again engage in that with, have Okay. as last quarter those none to you as funnel.

Tim Moran

No actually. it's really a point good

matter a could had leads of a of terms our backlog the them on been none leads off fall in final up able and really we've what size quite the immediately we've beyond to organization the well of follow of As generate so front generating end fact of with. frankly

and activity So from has target built been the Matt. very the account standpoint of final nicely

Matthew O'Brien

then two for more And me. Okay.

given don’t in far to think it much here. helpful into First how are know get actually want I but one you probably would I is we be how this QX the

trending or pre-COVID the as of capital this, that this get any court trying to the for off commentary sense or because you out just you a the can far it's us if things? of that to as go we're to help February are before get are really things talk January trending in how for how side things Just you're all that broke sense provide a or I want but demand into kind demand of know seeing.

Tim Moran

Yeah absolutely.

So I examples. couple would you give maybe a

as in and continue facilities that all new group of to I this become the we earlier, pleased up really right of build accounts So to we're said feel be set site. will and to the that progress and evaluations very making foundational we are facilities installations reference and targeted our the with we

of continued abrupt most in COVID. So early part that become with came and and overwhelmed to March, to given pretty the things obviously part a with and current track started of on February halt as hospitals then environment even the the has January situation the for

But what XX we now we've and with physician it and couple or trained we've seen multiply that from expand physicians two in have some to in or accounts to upwards started cases where call those to procedures. three docs earliest XX more that we've of done XX been a able

happening So when metrics have that you’ve to I account are in you’ve look at to to docs. expand those the you that or want see buying the sleeves that, able to converted gotten approval and more me been

to led orders. accounts repeat those in that's is what And

now get intention as was our is that on to off them everything this are leading really into moving in focus and group place, along the accounts expected. the pipeline COVID to So situation, of but continue of that

Matthew O'Brien

me financing then on Okay. one side. just last Thanks and the is for

I'm and to the on fair? enough cash as sure with the any as enough exiting with make loan got year cash million will gets you be far of covenants to is then half, So that to some you that you then this up I just included the get everything as first roughly go like end pretty in Silicon make of and have public lenient XXXX in we Valley everybody don't Bank cash you with I've XXXX to covenant but go far and $XX sure strategy as forward through comments you want summing their have the this

some sure that to other potentially given just And you're pursuing but that a am you're idle the get then pursuing it can more come strategic options able maybe be back that sitting by but sense we -- confidence details you. that of importantly, options you’ve give not you'll and give I to of you'll a not us investors you're you forward. any then going come trajectory Thank out side through of financing think we it growth all can this on deliver to the be

Tim Moran

layout very reduction So as our let shareholders, of today that first were current things of it program critical make disruption decisive our immediate saying we've protect me we is a is customers part this announced as degree know any about that start we there action that of to with it plan felt degree is of terms of here cost back and ,which is uncertainty there why sure our in business, and come environment I you by the we you all normalcy. took me what start and hospitals to when heard said to was we

on our being facilities able to we're of action making us that But is the for market ourselves to more and about the that a major the earlier. the I right able the types I market now to the that is and come hopefully other we're Pure-Vu give get gain for back bit in of way think centers we've part thinking be to this to the and of and these on to financial terms validation clarity taking time back the commented of utilized that progress trajectory in show be

think vices even financial speaking opportunity been folks the we've that commercialization will different interest options moving include with. and that's prior variety we've I potentially potential been could and to to forward. and I the things it continue strategic cash think to continue obviously of explore actively into think the to continue neither infusion to what Obviously that that to territories bring that consider us of company. COVID include does allows necessarily partnerships and and not and for We'll OUS partnerships is there's a an those I working strategic but that for discussing strategic

team and stock through shown given environment we've priority is a that But on where a listen us but now leadership not side equity our other we market right for the top in the publicly can board. marketed trading as given that the or is raise the current money deals

partners of there many the with need So we're we'll been building we're continue well financial of that are speaking the value to only and to one potential engage see we've large the as market that small whatever we've and incredible about and and an in you're or the market, an in I got that space. job large think technology It's resonates the talking hospital multibillion-dollar abroad. every unmet US

So quickly this is and to we'll right place to the time explore it's when the important is allow for I back from comes, reason we've up bit take more normal that the think world a make the away not decision be to continue and decisions the having that the to little but acted make short get against to of in a so run.

think have the that So we that back our in hope to those like road. court down Matt. I helps decisions would control to put make the we

Operator

Bauser The Please ahead. of & next Dougherty from question Kyle is go Company.

Kyle Bauser

to this about forward. around million question so at per previously rate just clear so follow reduction I So up XX% and you're looking was quarter the are on and month $X complete think about after able quarter going Matt's this next a to science to million burn be we $X just

Tim Moran

way So Kyle about it. to that's think the right

completed the by XXXX. comment throughout of is be We QX. to end our this burn reduction approximately what of will quarterly haven't but you will the if be XXXX, and fully XX% history burn expecting yes, look So specific out plan guidance about underway. to talked we've obviously what off your the last rate that we put expect for were And this at we be a

we run cash of of matter in QX QX be at terms rate a normalized will only a looking So burn. in new

Kyle Bauser

a some Okay. looking and I what sales know marketing. little we encompass retrieving XX are Got at and cuts normalize and bit about ramp back sounds there and back still like that can up. it cuts you then specifically it you Are projects mentioned and market highlight related or will departmental and spending territories in

Tim Moran

do careful we're not a both does and this it unprecedented had take faced I thought come and with put to when the pandemic, team easily time know board such and our lot to an was decision This with and situation this action. into leadership as this really we doing of

looked this far at that continuing one what technology our Pure-Vu. what thing we demand went strategy did in our and for back the business is what's is we we as with happen key and number the to priorities generation and So have department, the by to the validation need of are market

what last and core year from in is Cleveland for commercial perspective this So that of the believe first is group the that step the world influencer national a clinic large and getting customers hospital of our said we references. process the we as regional

as process various our as terms decisions. of that at we the making reductions the kept went So in of we through looking these guidepost

put So commercial things that and us of that to scalability is hold business. important not we're granular which for this without viability the going into validating are But on the to most allow don't a priority were that key impact going that things detail, now. things do objective to we believe it

leads different we a to With that in later we do strategic the as of then year. options take variety can that

the would I So specifically fields a part think is looked Matt, pipeline was the on there facing roughly from of at able we perspective it way I comment XX% as in is a is of about want Kyle and commercial I to of to a saying organization generate terms the way earlier reduction opportunities. significant to about we've that been

we to large of very right evaluations. got So not that need scheduled something very, of sites now. places is we focus on backlog go the that a We've can

still with a basically facilities. can team, penetrate these leaner large we that believe we So

think customers in across the we I But where and making or in about the with sales coverage, marketing XX% would are relationship appropriate already then the centers works department expand. ours where of decisions the place key a we that obviously reduction. in we've continue geographic the have already roughly are it to similarly in

that take pull to decisive we this head our in this The decision we're is six uncertainty working we're days we that current make XX but the to I up our absolutely us allows add the measure still right do environment is that, certain we now it other areas and for point with there out now from customers. we'll need now. is is confident would think from It that or and actually back if important month within the

Kyle Bauser

wise unprecedented And the think enviable a commercialization. spending currently COVID $XX position and in I company having and for is on tech certainly the small-cap cuts is balance million sheet

GI little I one sense. using any they're more, in the colitis you docs Maybe conditions from are can do in efforts that you're case it utilizing there these a about poorly makes how your seeing? in US, the frequently and more have you trends that So other general? bleed deploying when is early it? a sense just think operators like primarily GenX Is their prepped commercial or talk are when for in Are bit Pure-Vu it in

Tim Moran

Yeah sure.

listen clinic through showed liquid predictable study broadly that was was the very provide going give XX and mentioned were I the we to is it procedure and similar at prep clear again Cleveland their this prepped past hours valve within done XX% year the predictability prop that that patients the poorly diet numbers of right. system after ability clearly delays the new control not earlier that procedure hospitals value a is speaking to So and for

we ability seeing think bleeds is to real the ability most after that of our said which the what XX% GI the we're and about cases So bleeds in difficult resonates what saw Reduce having the impact the is to where GI entire in what I in get study. world procedures Pure-Vu comes That clinical population. up is and absolutely make immediately

that which absolutely get lead identify So quick don't if you re-bleed want then get you to where don't and diagnosis have there could the where and enough, something GI get a bleed clot occur. bleed immediately over in oftentimes can't want obviously you to can potentially to you they getting after

around around being and comes probably we've that think I it, that that's So these more as really more and to excitement technologies. piece more largest an but and would positions they a it we're that expect the enabling other to say I the comes patient sight too they clinical patients, to and the more is And seen. starts comfortable used with couldn't for conviction get on otherwise able and is treat treat, device then trend the

providing So visualization. we're

provide and that into props but GI to So even into different there other many being more medicine so like quickly. things is intelligence identify artificial ability are now introduced technologies in the that

reality clean technologies benefit a right. without of colon, is those the none a are But

about So able better perspective to we've things we're enable of these value other also to from to they've some it invested been that a of is props use adding talk our that in.

Kyle Bauser

That's Okay progress questions COVID particularly the congrats the Thanks my given situation. helpful. unfortunate for taking on and

Operator

of ahead. The is go Lichtman Please & next from question Co. Oppenheimer Steven

Steven Lichtman

hop the halt mentioned you situation. world Tim terms in current I of

not are you of that these se, unprecedented also course elected procedure on focused You are mentioned are per the times. but that guys

or that would've about can down getting talk procedures little what done how maybe provide still actually of you thought front? a or what of ground many seeing you're more So you now bit you on on color any portion right other are terms in the gotten can

Tim Moran

hospital things talked parts Listen, are I the an sure. bit of a do some on where on bleed that I've target there's and hospitals moving is things in physicians But GI these I've situation not to want delay in procedure York right. degree ability can be and depending unprecedented procedure if couple those bleed to of of delay they have in if if to Chicago a GI many in actually of contact delayed. country, it will Yeah positions the the they the obviously are given the but the obviously getting it's the a being been take comment overrun elective here. the based other with different One, or their bit you're New of a

provide care Obviously any happening most part the some right procedures And are now. picking as of hospital are being for the needed in that to but those up base procedures we they're their were as not of done outpatient certainly going well.

accounts. So a of think bit to be it's what support able it's I really to and is important we've but virtually mix do been bag able these

get things they're like did of been we've So the the them able we've the through help where or GI that, bleed and physician had procedures patient to procedure. variety based the care on need and system different support using that and tools staff Pure-Vu

that there do really we the been with have frankly so COVID be about each remotely we've there. about efficiency and planning been to every don't we now even perspective, we've provide quite efficiency happy before from of and thinking have our support, So some situation we've and and just time COVID how accelerated

up things tips very would provide and that a that. app other an the walk-through like things user and like set tricks friendly device So of of and

accelerated that So we've launch something the and we ability to anticipate that like here soon. that pretty

really GI that being doing of would patients do may it's being towards COVID are I prediction but now on done. are to a have than like it's Steve you most the critical a hearing hard it know other it cases get really expect. bleed of and resources they're that we're put right as what to But the percentage

Steven Lichtman

you Tim prior to are the value to who to and proposition, talking Pure-Vu begun physicians seeing use question uses. of the about your breadth have the the were answers

earlier, a should the you seem that Just to I target per Can you're conservative going be given utilization? you guidance the officers the per into like I size bit and month to it X talk you of assumptions seems that little think think said targeting, mentioned about we about month the XX me. thinking

Tim Moran

need listen Sure, it think the we've the that not to that that got significant and change everything about market Pure-Vu this unmet does and say best how is expect to management. right despite we launched the brand-new way and technology around all forget system it's well we've and a the works that does, let's

products work just their to to we've docs a on reason to we've because couple has and support approval initially get going targeting and other input physician. then based of we approved, been once outset So the towards approach and got this support buy-in is part to the the taken expanding at get that of

to that get something my you happen. always of years get again they’ve of many, the But is says things mindset many We've new, never folks way has it and experience is time. commercializing got easy of and old to takes doing to have management when devices training out there done change it

as to the early realistic and So look this commercialization. we're purposes but as be possible quarter in conservative tried if as as we've a to about COVID I think you possible at if due here it quarters half is

will ensure that we that the well-trained. think and we're time up we they're in update putting a that the Pure-Vu they become we're but and absolutely to quality ensure get be given that we to up there extra proponent experience indeed now year on dialogue later high too talking and podium tremendous metrics have training right front the we the those number of there have So we're peer-to-peer trying low as are if Steve, and fact docs the to in about

really that biggest start. to the So out put that's reason there we've why number

sites Certainly over that time will that procedures the doing. that these that given large we grow number anticipate are number of

Steven Lichtman

next then order and data last I data on you’ve show talk I in you Okay. to the but just be will over Anything late expedited I Understood additional get lastly year. at on hold XX opportunity to assume to email out? any point. able some use on be enough that's data helpful. Obviously didn’t patient to could know months front to

Tim Moran

Sure.

should end put if that you delay the any studies a but slowdown would are data not is there us of very expedite been I bit able by unless out the realm stop in a clinical the near-term of we year fall there's a So expedited into I to just like expecting. of and we be think all would than longer expect think

is one are other area. we're conversations So There that that having.

to that commercialization we programs do be reduction When will as programs to be there'll allow will we spending some for investments in and bolstered. these to that look at this be it clinical continue relates clinical

clinical the things some the and and for be So talking that setting of there world in later I would us be big there's we bolster will and in been that think work some with will around things go to year. that that commercially the validation economic I systems other to we've fully US some helpful intend forward real in the

provide a know We'll initiated. of as relates I that you through clinical responsibility as more in up of our few they're those I comment coming timing to briefly other here once Mark we thing Mark's we near-term. publications be will to one some that on it to would the have Mark he expect on is of and will the program. underway as updates Mark heads

you could add of Mark, So color for bit question? a Steve's

Mark Pomeranz

what color when we with publications at to So on data. to works look add a few Tim some mentioned, a little do it

really also folks those the in that the the major published commercial critical data and be got Tim as some some more Also works a term We sub should the bleed manuscript exciting looking in health and of to detailed well we we're coming about think analysis what of out really help be some and mention standpoint. on a we we the think study well out will So get will urgent fairly about around some at have talking about, especially patient environment interesting as that well. as quickly full as reduce studies some ICU from centers some as economic of the to current things possible. looking at near that in

Operator

ahead. question Please is Ladenburg Cohen go of Jeffrey Thalmann. next The from

Jeffrey Cohen

you this hit back any give including baseline taken $X expect to QX all as charge of would Andrew far at during you million the this could wondering reduction. you will to in little quarter place was $X.X I So a temporary Has million point I it QX? for which that as further clarity to guess or have QX

Tim Moran

color Jeff, let necessary. make just Andrew if me comment quick a and add can

this time. enacting plan are we real in So

So enacted this starting will week be here in QX. place be and will this taking

So think that's the would it. I way about

hopefully we answers will QX run reduced QX normalized So new and spend entire the the with with cost it. that QX. that work will that for your and of associated come the be the rate through we time That's then changes plan, question managing out

Jeffrey Cohen

you quarter by could the placements as in the about year? far end first as beyond then press release the of comment in reference totality the And last

Tim Moran

the to institutions. is more things online, I devices So continue way and it we work with XX say back may we and is about what when place obviously come think clearly would continue to I be just sites targeted accounts those in will would approaching

put literally So have that sites a and we shipped later staff into physician week hold. and we on complete then things went training got

with in been we've facilities. anticipate we So those contact

a of a normal on bit get once to they to get We with back cadence things. track back expect

QX So things continued plan. in on

Jeffrey Cohen

as pipeline more lastly I then asked so believe as can are me about was double than talk a that. far you for XX now I bit know backlog a bit, And about little quarter last facilities Matt our talking the or

up the is plan initial pipeline long more pretty be the as far and the much but of for approach what's that of hospitals So market as as pauses go? knows will things is when of targets free now the the you how kind number who pipeline an first

Tim Moran

it and to and that about have think I've I fair footprint that's we're of with, reality be said leading the these we're things and think accounts to terms online. that in the with they're folks a when comfortable but reduced footprint way that very be going to come the go accounts with as that right we're Yeah we're will a will working regions Pacific back is in the already moving to that

recognition about times and continue of we leaders the said is the take thought reality hard in both of terms think But I've to right national foundation of recognition, will major large what's I I the carry the reference IDMs because sites. influences, day, the a in the this GI The we it field. end want big important physician think that look name many, centers most at the many the building

the So we accomplish as that facilities will us. sure at are on focused make pipeline we for that we look feel we that that

value continue is we're to look the I like and about plenty continuing patients physicians if value the the at focus to need may or be need be to across sure hospital we pipe, the and more mentioned on to intensive be. not remember works as with able them. a than device brings it's I exactly line what with the think I don't this say but sites of running we goal mentioned the but this got approach believe are in new even they're and a with efficient out those get of to am hospitals possible help and and beds that Pure-Vu as pandemic, that's now earlier now the quickly shines black-and-white on a to we'll in investments So of about it as as hard made an brighter pandemic thing to what taking care to we've customers dealing technology you longer purchasing light proposition they unit feel proposition the will they're get do ensure this is out we important One we downtime have earlier about we to I and engage become it's

out So get focused really that to on Patients out. to them there's of COVID and really device when be out to quickly. think need absolutely I that's when something pointing this. come we need a that not be we benefit a It's in is tremendous bed more a

Jeffrey Cohen

with I would we the deal with and as concur kudos pause pandemic. on this for Thanks questions. the taking

Operator

ahead. Haynor Partners. Please next Alliance Global question of is go from Your Ben

Ben Haynor

the XX you First of as correctly today? as XX over mentioned hospitals. is of docs of all at that or of me Is that XXXX understanding over that got am trained that end you’ve I for

Tim Moran

the of QX. at was end That

it's to now So others one growing or and the QX or that we've started Ben would of in docs that -- size continued the the we number train you that having early in physicians are doing physicians if mentioned earlier with of on now expect trained. facility to the right do part with that I obviously at that two each and more three more of math target

on number when with clinical see the is will across five, we that as we they device. of case start in patients procedures, the that's device, physicians the Getting logic the the they to focus value giving That's well. use these do found and of really experience six, the continue seven what when experience to

an that's focus team. absolute So for the

Ben Haynor

we XXX And you docs the need ultimately in in from somewhere to at the of as you one, then to of that take docs your the more be expect you're that trained. remarks the that at prepared be two, trained that end that's year to mentioned Should these neighborhood a me three in total facilities you that facilities mentioned. that

Tim Moran

have docs Other there multiple rotate have the facilities the a work and the their So could small docs physicians a even sites and depending XX some simple and is some is I through you just inpatient obviously to know if on because don’t that of inpatient that largest GI of facility that if dedicate math procedures. number. different manage number utilities

handle physicians the that there's or example So bleeds. for all GI four of five

you So thinking facility every have math right that but extrapolate XX can physicians the about will you're that think in it I way.

on that tied basis put further a the number we'll are that'll quarterly in be updates the caution provide ultimately there would of in reduction the to year-end. and but at only the facilities obviously The team we I out of size is given obviously

Ben Haynor

higher of first I level full once you a utilization do way expect three they're they these -- to think it about how going there docs? have on would will very adopters Just forward that they're then the all you Is use are that utilization similar and or institution… individual early the think trained and the a model two and the pretty up

Tim Moran

as is procedures First procedure those physician patients their like outpatient. suddenly of will they hospital-based doing thing and oftentimes life of a all, for the poor Vu immediately a had that a that and of know case then the they're I about has history get perfect hospital-based think that they more next preps. we've start number and of seen one outpatient, They is used a they five do now this do Peer they think where gets that of naturally they do increase experienced, trained,

more device So comfortable if with naturally start just it they often. they to get the use

to would I that expect So continue.

thing other they procedures. some GIs interventional types and often of is to other these The are specialties doing think kind I sub may about that have physicians of would be

cases on number their depending ultimately what doing would be Pure-Vu right. the So daily of is drives they focus that

colonoscopies doctors and more and procedures over that on they use comfortable types interventional doing surely time of some they’ll they're do colonoscopy, Pure-Vu you some been Pure-Vu be then they're do have where other they’ve So doing guides probably the may cases of it. going a to and trained when

So vary is. actual what depending the I their think it they're will and on be focus doc

Ben Haynor

to the that development pretty front? exciting GI the then upper impact And reduction bleed on does headcount opportunity sounds but capabilities the how finally that

Tim Moran

question. great So

and clear let customer comments. One, make one. the First is time when couple want you we make again time hear to of of number I solution device not and it to market. in been sounds treat focus that take our where them. all at driving an us patients therapeutically me of a for docs priority and colonoscopy that to terrific and for talking physician area It's But an about the is help look opportunity there's a something we seriously. US to in them are like our voice inpatient That speaking

of terms the time, will that with options team more announced we that pretty that just runway because the it think over contemplated to giving coincides was do something change I with we nicely to GI upper the have ourselves we the continue and we've upper here continue. So and we opportunity that work that at therefore in more necessary GI wanted

work. obviously then is R&D there analysis and that's a of amount significant that there So regulatory is we There's market doing were underway. work

So that will continue.

an is next going that this So opportunity that in is be XX I but tomorrow so. or not it be think call to months will

and the that So need options and things continue to will financially we've to we able enter the market. our believe execute that plan attack we'll market on potentially resource have to be to to got both this learn the we and time project, wise learn the

stop we work on of So but not more done to that it. needs to to come in be that terms project on the that access upfront will Ben

Tim Moran

with all to of I today. give closing, time know say really I an only of in addressing but appreciate pandemic. I think how we and lives provided the the of union proactively our business are information state just is first commercially, the on important but lot everyone's want of I the all in not real-time just in in to was what a also we incredible this live kind

and ourselves opportunity, the on the storm get weather multiple right that times we're to technology this of created the to ability As are the taking necessary market and subside. to the of give building, I the about the track today, when that we've this the said start we things bullish and we're back fact approach value need size unmet that

the look providing appreciate and forward joined today everyone to of near-term. the we support in So will update who further call the

much So healthy. safe you and very and thank stay

Operator

This concludes today's conference.

lines your your you this may participation disconnect Thank at You time. for