Myomo, Inc. (AMEX:MYO) Q4 2023 Earnings Call Transcript

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Paul Gudonis: Yes, we have such a program. You have to go through a certain amount of clinical training by our staff. We will assist you with the evaluation and fitting of initial patients. And once you pass that certification, then you are what we call a center of excellence, and then you can start with sick patients, and we may even refer patients to you depending on different geographies.

Ben Haynor: Okay, that’s helpful. And then, do you need to hire folks to do that training? Is that part of 50, 60 people you’re hiring?

Paul Gudonis: Yes, it includes some O&P channel managers, as well as expanding our clinical training staff to be able to train these additional channel partners.

Ben Haynor: Okay, got it. And then just on the guidance for Q1 and the remainder of the year, I mean, is the step up kind of a function of waiting on shipping some of these things out to Medicare patients until the reimbursement was set? So instead of shipping the last week of March should moving and maybe shipping the first week of April, what’s the right way to think about that?

Paul Gudonis: That’s the right way to think about it.

Ben Haynor: Okay, fair enough.

Paul Gudonis: Yes.

Ben Haynor: Okay, it makes complete sense. And then, lastly, for me on the guidance, you mentioned Q4 potentially getting to cash flow breakeven. Where do you, and you also mentioned the step up in gross margin in the second half. Where should we be looking at exiting the year in terms of gross margin? I mean, does that get into the 70s?

Dave Henry: I do think with volume increases and probably an opportunity to increase our ASP a little bit now that we have the Medicare fees in place, I think it’s possible certainly to be more than 70% in the five and fourth quarter.

Dave Henry: Okay. Got it. I think that’s all I have. Thanks for taking the questions and congrats on all the progress in getting the reimbursement in place.

Operator: Seeing that there are no further questions, I’d like to turn the call back over to Paul Gudonis for closing remarks.

Paul Gudonis: Thanks operator. Well, I want to thank the new investors. They had faith in us in our products and participate in our capital raises over the past 15 months. You’ve been able to track well-regarded fundamental healthcare investors who see the long-term potential of this business. And we’ve had a number of executives and board members increase their stock holdings as well. We’re now focused on scaling the business with operational efficiencies so that we can meet this increased demand, achieve our goals of cash flow breakeven by the end of the year under the various assumptions that Dave pointed out. We’re delighted to put this major reimbursement issue behind us and 2024 will be a transformational year for Myomo. We’re thrilled to be in a position both to grow the company significantly and to improve the quality of life for a larger number of patients. Thanks for your continued interest in our company and have a good day.

Operator: The conference is now concluded. Thank you for attending today’s presentation. You may now disconnect.

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