electroCore, Inc. (NASDAQ:ECOR) Q3 2023 Earnings Call Transcript

Destiny Hance: Okay. Got it. Thank you for that. All right, let me ask just this one clarification, and then I’ll allow others to ask some questions because I’m definitely hogging the line. Did you say you added 362 new prescribers in Q3 alone?

Dan Goldberger: That’s right.

Destiny Hance: Did I hear that correctly?

Dan Goldberger: Yes, ma’am.

Destiny Hance: Wow. Okay. Well I’ll jump back in the queue. Congratulations again.

Dan Goldberger: More feet on the street brings more new names.

Destiny Hance: Yes. Love it. Perfect. Thank you.

Operator: Our next question comes from the line of Swayampakula with H.C. Wainwright. Please proceed with your question.

Ramakanth Swayampakula: Thank you. Good afternoon, Dan and Brian. Hope you are doing well?

Dan Goldberger: Hi R.K. Sorry about getting your new name.

Ramakanth Swayampakula: No. No. No. No. It’s better than something else. So looking at where you are and looking at your guidance. So you talked about $10 million, $10.8 million for the nine months, and then you’re guided up between $15 million and $15.5 million, let’s say $15.3 million and that stays flattish from here into the fourth quarter. But your commentary is otherwise. So what are we missing or why be timid?

Dan Goldberger: So management is very bullish. Some of our advisors are urging caution, but the biggest swing is the timing of revenue from the TAC-STIM product line.

Ramakanth Swayampakula: Okay.

Dan Goldberger: Which, while we’ve seen a steady cadence, I just want to be out of an abundance of [indiscernible], and I want to be careful about the lumpiness in that business.

Ramakanth Swayampakula: Fair enough, makes sense. Now I understand why you didn’t talk too much about the revenue expectations on the TAC-STIM business for the fourth quarter, even though you’re saying that you’re expecting it to grow. So moving straight into TAC-STIM, obviously it looks amazing going from the second quarter to third quarter on that revenue stream alone. But at the same time, you’re also making additional relationships from what I understand, within the military services plus the TAC-STIM 2.0, and with the new budget you have started in September, right?

Dan Goldberger: Right.

Ramakanth Swayampakula: I know you don’t want to say anything quantitative, but qualitatively where are the discussions in terms of how things are projecting for yourselves into the new fiscal year, which starts from September? And also the additional commentary I would like to hear is on TAC-STIM 2.0. How much can you talk to us about not only the development, but the potential deployment, and where could it go? In what places could it go?

Dan Goldberger: It’s a great question, R.K. and I’m going to give you two answers. The special operators, the actual folks who are using it are very excited, are very supportive, and are looking to deploy rapidly. The macro government shutdown silliness is out of everybody’s hands and is an issue.

Ramakanth Swayampakula: Got it. I get that now. Okay. All right. And then the 2.0, so what do you – where do you envision this moving forward? Or is that also dependent on start and stop of the government?

Dan Goldberger: So a little bit of both. We’ve delivered a significant number of pre-production prototypes to Air Force research laboratories primarily, and then a couple to army special forces. They are doing their evaluations. The preliminary informal anecdotal is very, very exciting and supportive. Most likely they’ll come back with a punch list of make it a little bit bigger, make it a little bit rounder, but we don’t see any – I’m highly confident that there won’t be any significant changes to the design and that we’re going to be able to move quickly into pilot production.