David Roman: Yes. So I’ll start with the second part of your question and come back to the allocation question in a second. With respect to the software impact that we can have, remember we are the only company that offers ultrasound-based non-contact mapping. We’re also the only company that really can offer the mapping of AFIB as well as other complex arrhythmias outside of the pulmonary veins. What we lack today, however, is the ability to do basic contact mapping within the same — within what we describe as the same session. So basically, we offer contact mapping, but to go from contact mapping to non-contact mapping, you have to shut down one mapping session and open another one. And that can add about 15 minutes to a case, which, given the procedure times here, 15 minutes is a pretty significant percentage addition.
When we launch AcQMap 10 in the first half of next year that will enable physicians to do contact and non-contact mapping in the same session, and that will allow us to really be rolled in to a lab and have an Acutus day in the lab. And this is where we see some of our most productive accounts utilize us right now. And it’s not the overwhelming majority. One day of the week is an Acutus day. Right now that a tough ask for us until we can really offer competitive contact mapping. And if we can pair contact mapping and contact mapping into one session, which is the design of AcQMap 10, that goes a long way to knocking down probably one of the biggest barriers to the use of AcQMap because in a lot of cases today, physicians will do a contact map on Abbot or Biosense and then they will bring in Acutus to do a non-contact map to evaluate regions outside the pulmonary veins.
That adds time and cost to the cases. And it’s one of the biggest reasons why we see Acutus most regularly used in redo cases. Being able to move up the curve into de novo persistence is a huge driver of incremental growth that we expect in 2024. And that’s largely tied to software and algorithm development that will make the system able to really work on a stand-alone basis, especially when you combine that with an ablation catheter.
Margaret Kaczor: That’s great. Thank you very much. Appreciate it, guys.
Operator: Thank you. . Our next question comes from the line of William Plovanic of Canaccord. Please go ahead, William.
William Plovanic: Thanks. Can you hear me?
Operator: Yes, sir. Please proceed.
David Roman: Hi, Bill.
William Plovanic: Hi. Good evening. My name cut out. I didn’t hear it. So couple of things. One, unfortunate on the supply challenges, sorry to hear about that. What is your view — obviously, I’m sure you’ve done an extensive review. Any other raw material issues that you’ve identified, other products, what’s your ability to prepare for the launch of the AcQBlate? Does that impact it in any way? How should we kind of think about any of those potential things going forward? That’s my first question.
David Roman: Thanks for the question, Bill. At this point, we do not see any other risk to raw material supply challenges as it relates to the AcQBlate launch or any of our other products. And as we’ve recovered on the AcQGuide 2.0 sheath product line and we navigate through the supply challenges, which we have a line of path to recovery here in the second quarter here, we don’t see any risk related to supply challenges.
William Plovanic: Okay. And then how do you plan on accounting for the Medtronic? And I know this may be nuanced, but is it the transfer price is up top and then the royalty is down below? Or does it all hit revenues? Is one thing above the line, one below the line? How is that if you work through the accounting for that I guess?
