electroCore, Inc.

NASDAQ:ECOR

Earnings Call Analysis

Earnings Call Transcript 2024-Q2

[Operator]

Greetings, and welcome to the electroCore Second Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Dan Goldberger. Thank you, sir. You may begin.

[Daniel Goldberger, executive]

Thank you all for participating in today's electroCore Earnings Call. My name is Dan Goldberger. I'm the Chief Executive Officer of electroCore, and I'm also a member of the Board of Directors. Joining me today is Brian Posner, Chief Financial Officer. Earlier today, electroCore published results for the second quarter ended June 30, 2024. A copy of the press release is available on the company's website.

Before we begin, I'd like to remind you that management will make statements during the call that include forward-looking statements within the meaning of the federal securities laws, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements contained in this call that are not statements of historical facts should be deemed to be forward-looking statements. All forward-looking statements, including, without limitation, any guidance, outlook or future financial expectations or operational activities and performances, are based upon the company's current estimates and various assumptions.

These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated or implied by these forward-looking statements.

Accordingly, you should not place undue reliance on these statements. For a list of the risks and uncertainties associated with the company's business, please see the company's filings with the Securities and Exchange Commission. electroCore disclaims any intention or obligation except as required by law, update or revise any financial projections or forward-looking statements, whether because of new information, future events or otherwise.

This conference call contains time-sensitive information that is accurate only as of the live broadcast today, August 7, 2024. electroCore was founded in 2005 to commercialize the use of our proprietary noninvasive vagus nerve stimulation for medical and general wellness applications. The vagus nerve is the longest cranial nerve in the body, bringing information from the visceral organs to the brain.

Simulating the vagus nerve affects many important autonomic functions in the brain and in the body, including neurotransmitter levels, inflammation levels and metabolism. Surgically implanted vagus nerve simulators have been available from other companies for more than 40 years for chronic conditions like epilepsy and depression. So a large and growing database confirms the safety and efficacy of the technique.

Building on that science, electroCore pioneered noninvasive vagus nerve stimulation and our products are now available by prescription for certain headache conditions and without a prescription for general wellness and human performance.

Our pipeline of potential future indications and products continues to grow as clinicians, researchers and wellness advocates conduct investigator-initiated trials to become more familiar with the benefits of noninvasive vagus nerve stimulation.

We are excited to report a seventh consecutive record revenue quarter at $6.1 million for the 3 months ended June 30, 2024, a 73% increase over the prior year. That's a 69% 5-year compound annual growth rate. We reported 86% gross margins and a 46% reduction in the company's net loss from the same period in 2023. We continue to make progress towards positive cash flow as revenue increases, gross margin expands, and we maintain discipline around operating expenses. Brian will discuss the financials in more detail later in the call.

We launched our U.S. prescription headache business in 2017, selling primarily to specialty pharmacies. Since then, our prescription headache business has grown worldwide, including sales that are covered by national health systems such as the VA hospital system in the United States and the National Health Service in the United Kingdom.

Cash pay sales through prescriber professional channels and through served managed care systems in the United States. We launched 2 new nonprescription general wellness product lines last year. Truvaga is a direct-to-consumer health and wellness brand and TAC-STIM is our brand for human performance for active duty military personnel.

Truvaga sales exceeded our expectations for the quarter. We reported small TAC-STIM sales for the quarter but added substantially to the funnel of future opportunities. The VA hospital system continues to be our largest revenue channel. You'll recall that our gammaCore prescription therapy is free to patients covered by veterans administration benefits, representing about 9 million covered lives across approximately 1,300 health care facilities.

Sales in the VA channel grew 120% to $4.6 million in the second quarter of 2024 from $2.1 million during the second quarter of 2023. 160 VA facilities have purchased prescription gammaCore products through June 30, 2024, as compared to 138 through June 30, 2023.

The VA hospital administration headache centers of excellence estimates approximately 600,000 patients are being treated for headache in the VA hospital system. We've dispensed gammaCore devices to approximately 6,100 veterans since 2022, representing approximately 1% of the total addressable market within the VA system.

We use several contracting mechanisms to support sales to individual VA facilities, including open market access, our federal supply services contract and our distribution agreement with level government services.

During the second quarter of 2024, sales through level accounted for approximately 27% of our VA sales, up from 13% during the first quarter of 2024. Truvaga is currently positioned as a direct-to-consumer general wellness product for stress, relaxation, sleep and mental acuity. For the second quarter of 2024, total Truvaga net sales were approximately $572,000 as compared to $290,000 during the second quarter of 2023.

Our revenue return on advertising spend with the industry calls a media efficiency ratio, or MER, was approximately 2.81% in the second quarter. In other words, we're spending $1 to generate $2.81 of revenue. Truvaga return rates increased slightly to approximately 10% of shipments.

In April 2024, we launched Truvaga Plus, our second Truvaga product offering. Truvaga Plus is a mobile app-enabled general wellness product. The first few months of sales of Truvaga Plus have again exceeded expectations, and we are enthusiastic about the potential our new mobile app-enabled product provides for future iterations of our technology and engagement with consumers.

Since launching Truvaga Plus, we sold approximately 1,200 handsets and customers have conducted approximately 60,000 sessions using the mobile app. We believe that the Truvaga business can scale nicely, if we maintain or improve these metrics.

Most of our Truvaga revenue is generated through our e-commerce platform, www.truvaga.com. Following the successful launch of Truvaga Plus, we are exploring other channels to reach consumers, including influencers, affiliates and resellers.

TAC-STIM for human performance is being sold to select Air Force special forces and Army special forces units for accelerated training, sustained attention, reduced fatigue and improved both as defined by the Air Force Research Laboratory, or AFRL, no prescription is required and more information is available at www.tacsim.com.

For the second quarter ended June 30, 2024, we recorded $55,000 of TAC-STIM sales as compared to $311,000 during the same period last year. We announced the commercial launch of our second-generation TAC-STIM handset in June 2024.

This version was developed in collaboration with AFRL, and we believe that at least some TAC-STIM sales were deferred as customers waited for the new handset. We have a growing sales funnel for TAC-STIM, and we continue to believe that revenue from this product line is likely to be lumpy as active duty units purchased in bulk for pilot deployment.

To that end, we expect revenues for TAC-STIM in the third quarter and back half of 2024 to be higher than in the second quarter and first half of 2024, respectively.

Our U.S. prescription gammaCore channel, including gCDirect and gConcierge recorded revenue of $476,000 during the second quarter of 2024, up 7% from $445,000 in the second quarter of 2023. There were 2,216 cumulative revenue-generating cash pay prescribers as of June 30, 2024, up from 1,451 on June 30, 2023.

We previously stated that we expect at least some of these customers to migrate to the Truvaga brand as awareness grows, so we are modeling flat revenue from this category for the time being. We began experiencing that migration during the quarter as certain gConcierge customers are evaluating the Truvaga product line.

Last year, we announced a distribution agreement with Joerns Healthcare LLC that we believe will add more than 12.5 million covered lives within a select managed care health system. The business model with Joerns is how we work with the VA hospital system. Joerns handles adjudications, billing, and collections while electroCore ships directly to patients and provides in-servicing and patient support. Our field sales team is responsible for building awareness among clinicians within those managed care systems.

We continue to work with Joerns on the implementation including the expansion into new geographic territories. Our field sales function is developing champions within the targeted managed care system, and while it is taking longer than we had hoped, we still believe Joerns could be an important source of revenue growth in the second half of 2024 and beyond.

Revenue from channels outside of the United States, OUS, increased by 9% to $464,000 in the second quarter of 2024, as compared to $424,000 for the second quarter of 2023. Most of our OUS revenue continues to be generated in the United Kingdom by prescription gammaCore sales funded by the National Health Service, or NHS.

Now I'd like to turn to our scientific progress. Last week we announced that the Air Force Research Laboratories published a paper entitled ranscutaneous Cervical Vagus Nerve Stimulation Enhances Second-Language Vocabulary Acquisition While Simultaneously Mitigating Fatigue and Promoting Focus in the journal Scientific Reports. The paper is based on a study that was conducted at the Defense Language Institute in Monterey, California, U.S. Department of Defense's premier language school and was supported by the DARPA Targeted Neuroplasticity Training Program. The paper showed a significant positive effect of nVNS on language recall.

Paper goes on to document that the recall advantage that emerged during training was sustained after the completion of treatment. 2 of our investigator-initiated trials, the acute stroke trial in Leiden, Netherlands, and the gait and Mobility trial in Parkinson's disease in Newcastle, the United Kingdom, have been fully enrolled and we expect to report top line data later this year.

We continue to work with the FDA on a pathway for post-traumatic stress or PTSD label, but that timeline continues to be uncertain. We'll provide updates about our pipeline and other opportunities as they become available.

Now, I'd like to turn the call over to Brian for a review of our financials. Brian?

[Brian Posner, executive]

Thank you, Dan. Net sales for the 3 months ended June 30, 2024 were $6.1 million, an increase of 73% as compared to $3.6 million during the 3 months ended June 30, 2023. The increase of $2.6 million is due to an increase in net sales across the majority of our major channels, including our prescription gammaCore medical devices sold to the U.S. and abroad, and revenue from the sales of our non-prescription general wellness Truvaga brand.

Gross profit increased by $2.3 million for the 3 months ended June 30, 2024, compared to the 3 months ended June 30, 2023. Gross margin increased to 86% in the 3 months ended June 30, 2024, as compared to 84% for the 3 months ended June 30, 2023.

Total operating expenses in the second quarter of 2024 were approximately $7.9 million, as compared to $8 million in the second quarter of 2023. Research and development expense in the second quarter of 2024 was $600,000, as compared to $1.2 million in the second quarter of 2023. This decrease is primarily due to a significant reduction in investments.

Selling, general and administrative expense of $7.3 million for the 3 months ended June 30, 2024, increased $458,000, or 7%, as compared to $6.8 million for the comparable period in 2023. This increase was primarily due to our greater variable selling and marketing costs consistent with our increase in sales.

GAAP net loss for the second quarter of 2024 was $2.7 million, or $0.38 per share, as compared to the $4.9 million net loss, or $1.03 per share, for the second quarter of 2023. This significant improvement was primarily due to the increase in net sales to $6.1 million for the second quarter of 2024.

Adjusted EBITDA net loss in the second quarter of 2024 was $1.9 million, as compared to adjusted EBITDA net loss of $4.5 million in the second quarter of 2023. These improved results are also primarily due to the 73% increase in the second quarter of 2024 net sales. A reconciliation of GAAP net loss to non-GAAP adjusted EBITDA net loss has been provided in the financial statement tables included in today's press release.

Cash, cash equivalents, marketable securities, and restricted cash at June 30, 2024 totaled approximately $14.5 million, as compared to approximately $10.6 million as of December 31, 2023. In June 2024, the company raised net proceeds of approximately $9 million through a registered direct offering and concurrent private placements priced at the market under NASDAQ rules.

And now, I'll turn the call back over to Dan.

[Daniel Goldberger, executive]

Thank you, Brian. I am incredibly proud of our continually growing revenue and the operating leverage we're seeing in the business. Our operating metrics, especially revenue and gross margin continue to beat internal expectations, and I'm very enthusiastic about the company's long-term prospects across all brands and product lines.

Demand for our prescription gammaCore therapy in the VA channel continues to grow based on clinical performance and our increased presence in the field. Our FSS contract has been extended to September 14, 2024, and we continue working with our VA contract specialists to secure a new follow-on contract. We have approximately 40 straight commissions sales agents representing about 90 to 99 reps in the field managed by our small team of territory business managers and supported by our customer experience team. This hybrid structure is very scalable, as we deploy prescription gammaCore around the country.

The Truvaga Plus launch has been favorably received by the market. The brand continues to show tons of potential as a direct-to-consumer general wellness offering. We're selling Truvaga products through our e-commerce site, www.truvaga.com, and we will explore expanding the Truvaga proposition through new product offerings and new channels to increase the lifetime value of each customers go forward.

The pipeline of interest from different branches of our active-duty military continues to develop for our TAC-STIM products. Q2 2024 sales of TAC-STIM were impacted by the timing of the launch of our new handset and should resume in the back half of the year. We expect the TAC-STIM revenue will be hard to predict in the short-term as active-duty units evaluate and purchase in bulk for pilot deployment.

Longer-term, we continue to believe that there may be civilian crossover as first responders, elite athletes, transportation workers, traders, and e-gamers become aware of the human performance benefits published so far.

During the second quarter of 2024, our sales and marketing expense increased by approximately $286,000 over the second quarter of 2023, while sales grew by $2.6 million. Most of the top line revenue growth of $2.6 million dropped to the bottom line as our net loss declined by $2.2 million, signaling real leverage in the P&L.

Further out, we're working towards establishing additional indications for prescription gammaCore to treat post-traumatic stress disorder, opioid use disorder, and other clinical opportunities. In June 2024, we raised net proceeds of approximately $9 million through a registered direct offering and concurrent private placements priced at the market under NASDAQ rules. We had $14.5 million of cash and equivalents in June 30, 2024, and we will maintain discipline around fixed operating expenses.

We expect that commissions and media spend will scale with revenues, and we model approximately 30% of related sales on a blended basis. Therefore, we expect that our cash used will continue to decline sequentially as revenue increases.

In summary, I believe the business is demonstrating operating leverage, and we will have a variety of levers to pull to continue growing the business. I'm confident that we can generate positive cash flow early next year with the financial resources on our balance sheet at June 30, 2024.

At this time, I'll turn the call over to the operator. Operator, please open the line for questions.

[Operator]

Your first question comes from Jeffrey Cohen with Ladenburg Thalmann.

[Jeffrey Cohen, analyst]

So I've got a bunch. Some are short, though. Shares outstanding where we are currently as far as a good number, 7.1 million?

[Brian Posner, executive]

We have 4.6 million outstanding, and then about another 1.6 million of pre-funded warrants that get into the -- go into the EPS calculation.

[Jeffrey Cohen, analyst]

So what did you use this quarter, 7.05 million?

[Brian Posner, executive]

Yes. For this quarter, on the table, was an average of 7 million, 7,046.

[Jeffrey Cohen, analyst]

That reflects the June range, though.

[Brian Posner, executive]

That's correct.

[Jeffrey Cohen, analyst]

And well, I have you on, Brian. What was cash loss for the quarter? I got the adjustment number of $1.9 million and the GAAP $2.7 million. What was the cash number?

[Brian Posner, executive]

The cash used from operations was about a little bit under $1.8 million.

[Jeffrey Cohen, analyst]

So a couple other questions. I guess I wanted to get a little more advice-related. So the second gen tax in black that I saw, Dan, that's going to be back half, stronger than front half, perhaps sequentially based, but probably lumpy and a bit shy of what we previously thought. That's more like, I don't know, $1 million, $1.5 million for a year, maybe?

[Daniel Goldberger, executive]

That's -- I've got visibility to at least that number. The deliveries this quarter were held back waiting for the official launch of the new generation. So those are good numbers for walking around with. And it will be -- we have a large commitment in the fourth quarter for delivery in October. So we're pretty comfortable with the range which you have.

[Jeffrey Cohen, analyst]

And maybe talk a little bit about ex U.S. And we've heard a lot about the NHS in the U.K. with gammaCore, but other territories, other territories prescription-wise as well as other territories DTC-wise?

[Daniel Goldberger, executive]

So, yes, U.K., we have expectations that it will continue to grow sort of mid single digits in the 4%, 5%, 6% range. It's a steady eddy kind of a business. And we do not have visibility on other geographies getting into reimbursement at this point in time. So other geographies are more of a 2025 story.

[Jeffrey Cohen, analyst]

And currently, commercial-wise, the Truvaga versus the Plus, the differential is 352-minute sessions on the regular Truvaga and the Truvaga Plus, which is unlimited with the fancy different colored comps available.

[Daniel Goldberger, executive]

Correct.

[Jeffrey Cohen, analyst]

Okay. And that's $399 versus $499.

[Daniel Goldberger, executive]

That's exactly how our marketing folks would like you to describe it.

[Jeffrey Cohen, analyst]

Yes. I wasn't sure if I wanted the pink or the green one, but I went for the somewhat translucent charcoal color. Just saying.

[Daniel Goldberger, executive]

Thanks.

[Jeffrey Cohen, analyst]

Okay.

[Daniel Goldberger, executive]

Excellent choice.

[Jeffrey Cohen, analyst]

I got it. Yes, so U.S. payers, in the case of prescription focus, I know you're working on Joerns. Does it feel like more U.S. payers can come around? Could there be a point, perhaps Medicare as well, where in another 0 or year or 2 or 3, there's a large amount of payers being covered?

[Daniel Goldberger, executive]

So we're really focused on getting traction and penetration in the Joerns managed care relationship, and we think that's going to be an excellent benchmark or reference case for the more traditional national and regional payers.

We do have had some small payer wins among the regional payers, some of the blues in local geographies, but we're really -- with a small team, we're focused on making the Joerns managed care relationship really jump out later this year.

[Jeffrey Cohen, analyst]

And then lastly, talk about those 2 papers, 1 on Stroke, one on gait. The second one's in the U.K. First one's where and when will we see that, and we'll be at a conference?

[Daniel Goldberger, executive]

So, yes, the Stroke trial is being done in Leiden in the Netherlands and was fully enrolled in the first quarter of this year. And these are both investigator-initiated trials. We have no influence on the timing of when the data is going to be available. They're both European trials, one in the U.K., one in Netherlands, and you know better than I do that academics take the summer off. So it's been a little bit frustrating getting any communication from them in the short run. But I'm looking forward to being able to speak more clearly about the top-line data both for the end of the year.

[Operator]

Your next question comes from Anthony Vendetti with Maxim Group.

[Anthony Vendetti, analyst]

So, Dan, so, the commercial payers, I know that's something you're working on, and I know that it takes time, as we know, but maybe just an update on where you are with some of them and what the expectation is for the rest of this year in 2025.

[Daniel Goldberger, executive]

Yes. So, the VA hospital system is fully reimbursed for veterans that are covered by the VA hospital system. In the Joerns managed care system, which is larger as measured by covered lives, we went on formulary in January of this year, and it's really now more of a develop clinical champions and get penetration within the system than it is getting payers.

So that's what our field sales team is focused on right now is demonstrating clinical adoption and driving penetration of that health care system. And similar to Mr. Cohen's question, we really want to demonstrate that we can grow the business before we start directing resources to some of the other more traditional national payers in 2025.

[Anthony Vendetti, analyst]

And then would you attribute the year-over-year decline in TAC-STIM to the maybe anticipation of your commercial launch of the next generation TAC-STIM?

[Daniel Goldberger, executive]

Yes. That's exactly what I was trying to say is that the Air Force and Army were very aware, very closely involved in the development of the new version of TAC-STIM, and so all of those orders were deferred until we could reliably supply the new heavier black handset.

[Anthony Vendetti, analyst]

And then lastly, just I know there's a number of potential applications for the gammaCore. What is the next one you intend to hone in on and focus the team on?

[Daniel Goldberger, executive]

Yes. So PTSD, we announced breakthrough designation a few years ago. We've been working with the agency on the path forward to get a specific indication for PTSD. Substance abuse, there's a pivotal trial that's being sponsored by NIDA, National Institute on Drug Abuse, that is enrolling patients, and it will read out in the beginning of next year. So those will be the next 2 sort of categories of label extensions that we're looking for vagus nerve stimulation.

[Operator]

Our next question comes from Sean Lee with H.C. Wainwright.

[Xun Lee, analyst]

This is Sean standing for RK. So with VA still being your biggest customer and the U.S. federal fiscal year coming up soon, I was wondering if you could elaborate a bit more on the contract extensions and how that's going on? Can we -- should we expect any changes for next year? Are there any extensions that you could go into?

[Daniel Goldberger, executive]

So, yes, so we're working with the contract agent to get a new 5-year FSS contract there that office has just been slow. And as a result of their backup, they've been giving us these 3-month extensions, which is frustrating, because it doesn't impact our business on a regular basis. We do expect to get a small price increase through that process.

A larger percentage of our business is going through level where the economics are slightly more favorable level. You may recall is a small service-disabled veteran owned small business. They did 13% of our VA hospital business. In the first quarter, they did 27% of a larger number in the second quarter, and we're perfectly comfortable moving a larger portion of the business to their contracting mechanism and having multiple channels to be able to service that customer.

[Xun Lee, analyst]

Great. And my second question is on the -- in the prepared remarks, you mentioned the effectiveness of vagus nerve stimulation for accelerating language learning. Just wondering, is that something that's specific to TAC-STIM? Or is that also applicable to Truvaga? And do you have any plans to market towards that?

[Daniel Goldberger, executive]

So the trial was done with gammaCore handsets. So -- and then it was funded by the Department of Defense. The clinical results absolutely transferred to TAC-STIM and could probably be inferred for Truvaga, but Truvaga delivers a lower dose, so you would need more sessions with Truvaga to get the same mental acuity benefits. But the more general comment is yes. It's fundamental, the learning advantage, the cognitive enhancement is fundamental to the way this vagus nerve stimulation works and should be applicable across our product lines.

[Operator]

Your next question comes from Tyler Bussian with Brookline Capital Markets.

[Tyler Bussian, analyst]

So I got 2 quick ones for you. I don't know if I missed it during the presentation or not. Do you happen to have an updated VA DoD facility count for this quarter?

[Daniel Goldberger, executive]

The number that we reported on the prepared remarks was 160.

[Tyler Bussian, analyst]

Okay. 160. Unless I missed it in there. And my second quick question for you. The language learning data was very interesting. I noticed on clinicaltrials.gov there were a few new indications that had popped up from independent investigators amyloid clearance or supplemental clearance and then also the VA running looks like alcohol use disorder trial. Do you have any comments on those type -- those new kind of indications or studies?

[Daniel Goldberger, executive]

Yes. Yes. So the alcohol is a spin out of the work that's being done on opioid use that NIDA is supporting. And the pilot results are very compelling. These are all investigator-initiated trials, so we're not necessarily privy to the structure of the trial -- and in many cases, we're actually selling handsets to the investigators who have independent funding. So we don't have a lot of input. But we love the research interest and it all adds to the body of knowledge around vagus nerve simulation and could lead to future indications.

[Operator]

Your next question comes from Walter Schenker with MAZ Partners.

[Walter Schenker, analyst]

Okay. My plug on the thing, my wife is good too as an enthusiastic user of the device. We both are. I've got my brother-in-law and a whole bunch of people. It would be correct that the majority of the dollars raised in the recent equity was raised from people who are either in management or in some way affiliated with the company?

[Daniel Goldberger, executive]

Absolutely. Yes, directors and officers.

[Walter Schenker, analyst]

They put in $5 million odd of the $9 million, correct?

[Daniel Goldberger, executive]

More than that.

[Brian Posner, executive]

More than that, probably close to --

[Walter Schenker, analyst]

I know it's more. Okay. It's worth pointing out to people. It's an unusually strong result for a small company. Not a setup question. It's frustrating to me as an investor given all of the interest in the VA system, the additional research, the fact that they are the people who have done most of the work on the PTSD and we indicated although there's no hard data, some degree of use off label beyond headaches that still a penetration either in the headache area or broadly in the VA system is so low. Is there a partner or something -- I know Level has really upped the game, I guess. Is there some way except hospital-by-hospital, region-by-region to get a real step-up in penetration given how fewer hospitals for all this time you're in?

[Daniel Goldberger, executive]

Yes. Look, Walter, it's a great observation. I do think, and if you talk to our sales leadership that we're starting to see a bit of a tipping point where there's good recognition awareness that the technology is available for headache and is available for some of these behavioral health indications off label. And I think you're going to start to see that penetration accelerating as we roll into 2025. We're always open to partnerships. We had a variety of conversations but nothing that's close enough to really start to brag about.

[Walter Schenker, analyst]

Good. And lastly, again, a comment I made this to you, but I want to make it again, especially for the Truvaga Plus and you've mentioned this more is better in using vagus nerve your technology in vagus nerve stimulation. And that...

[Daniel Goldberger, executive]

Absolutely.

[Walter Schenker, analyst]

...2 minutes twice a day is not as good as 4 minutes twice a day or 4 minutes, 3x or 4x a day, which all my wife does, and I think it's useful and important either on the side or broadly to continue to explain and try and inform people that if you use it more, it enhances, even going back to learning, where you said because the people in the trial used higher levels of simulation, it gets to the same place, you'd have to use the consumer product more time, there really needs to be a greater push by the company that more is better as opposed to just again, 2 minutes twice a day is not really a great place to be. You should be using it more.

[Daniel Goldberger, executive]

You're absolutely right. I think you'll start to see that in our marketing and advertising or promotional information, especially when you're looking at the wellness opportunities for mental acuity, for focus or quality of sleep, you're absolutely right, Walter. All of the data shows that more sessions leads to better outcomes. And -- but of course, you have to trade off the convenience for the consumer and end user, how much time they're willing to devote to getting those general wellness benefits. But in my personal experience, I do it quite frequently, especially on a stressful day like today.

[Walter Schenker, analyst]

And it's easy enough to use watching TV, looking at your computer or doing other stuff with your hands, don't need your hands or you're doing it just to sit there and do it is pretty easy. Okay. My ad is done.

[Operator]

There are no further questions at this time. I would like to turn the call back over to Dan Goldberger for any closing comments.

[Daniel Goldberger, executive]

Thank you, operator, and thank you all for joining today's call. Our employees are working tirelessly to deliver products and therapies that improve the health and wellness of patients and customers. The team has done a great job of staying nimble, scaling the business, creating operating leverage and responding to the needs of our customers.

I also want to thank the health care professionals and their patients for their loyal support of gammaCore therapy and consumers for adopting our Truvaga product for general wellness. Thank you all, and have a good evening.

[Operator]

That does conclude today's conference. You may disconnect your lines at this time. Thank you for your participation.