SANUWAVE Health, Inc. (SNWV) Earnings Call Transcript & Summary

Good day, ladies and gentlemen, and welcome to the SANUWAVE update on recently acquired wound care asset call. [Operator Instructions] At this time, it's my pleasure to turn the floor over to Mr. Kevin Richardson. Sir, the floor is yours.

Thank you, Tom. Thank you, everyone, and welcome to today's conference call to review and update you on SANUWAVE's acquisition of the UltraMIST assets and licensing rights to Celularity's biologic lines, Biovance and Interfyl. We'll go through a presentation and then follow it up with Q&A at the end. During this call, we will be referring to a slide deck, which was released as an 8-K at 12:30 and is available on our website, www.sanuwave.com, in the Investor Relations section, titled Acquisition Update. We'll be referring to that as we go through today's presentation slide by slide. In that presentation, on the first page, there is a forward-looking statement, and I encourage investors to review that as we will be discussing the merger, its integration and future plans on this business call, and that is the forward-looking statement that everyone needs to read. Before we begin, I wanted to thank all those involved in this process. It's been a long process to get the acquisition completed. We have a wonderful team at SANUWAVE and are bringing on 25 employees who will become part of the SANUWAVE family and are all passionate about wound care and helping wounds heal. Combined, we will be over 50 employees with one focus, providing the highest quality wound care solutions on the market and helping wound centers treat patients. I also want to thank the existing SANUWAVE investors for their support in this particular transaction. I'll get into the details in a moment, but over 60% of the equity provided for this transaction came from our existing shareholder base, which is extremely encouraging. As we begin the presentation on Page 2, we get into the 3 main reasons we're excited about this transformative acquisition being completed. One, it broadens our wound care platform with additional products, with the noncontact ultrasound and a human tissue-based biological products to complement the dermaPACE product. We'll have the 2 leading energy transfer products on the market in complementary extracellular matrix products to help the wounds heal. Two, we are now in over 1,000 locations with this acquisition. We'll have an extensive distribution sales force, both direct and indirect, which we'll get into in a moment, and will be supporting all 4 products. And currently, we have very minimal overlap in those locations. Three, it brings critical mass to both us on products and on a financial basis, with over $15 million in revenue from the acquisition coming on and substantial free cash flow. On Page 3, as we mentioned previously, we are combining 2 complementary technologies and will have a platform which can treat advanced wounds from end-to-end. These products will be able to work in conjunction with each other and help accelerate wound healing by working in combination, something other wound companies that do not have energy transfer devices will not have that offering. Second, as we combine operations, we will also realize cost savings of over $2 million in the first 18 months. SANUWAVE has been working with the well-known consulting firm, Alvarez & Marsal, on the integration planning and the optimization of the business. We'll also be implementing training of the existing reps on all the products and begin cross-selling into existing accounts immediately. Three, the critical mass in revenue and cash flow, it puts us in a unique position as a company where we have capital put into the business growing forward to grow. On Page 4, let me spend a moment on the financial highlights of the transformative transaction. The purchase price was $24 million. We paid $20 million in cash, with a $4 million seller note. This equates to 6x EBITDA for 2019, 4x when you include the cost savings. We issued a private transaction for the equity portion and also received $15 million in proceeds in the form of a 5-year term loan from Morgan Stanley Capital. This allowed us to repay our senior note with HealthTronics, and it leaves us with over $10 million on the balance sheet at closing. Page 6. This highlights the company overview and some of the key points to the transaction. And after spending some time on this page and knowing what we paid for the assets from a multiple standpoint, you can understand why it is so transformative and why the combined companies are so excited about the future. The assets in the business we acquired did $15 million in revenue and $4 million of EBITDA in 2019. Despite COVID, we expected that, that number to increase in 2020 and dramatically increase in 2021 as the integration and cross-selling plans were completed. We will have product in over 1,000 locations, but what's interesting is we only overlapped in 15 locations, dermaPACE and UltraMIST. So the sales teams will now be able to go back to their existing accounts and bring those new products into their existing account base. This cross-selling alone could more than double the revenue of the combined companies. The goal, as we stated, is to have each sales member selling and supporting all 4 products in the field. But maybe the biggest benefit that I see from this acquisition is the Wound Care Solutions sales teams will be -- have representatives in the field. We will move -- SANUWAVE will move from 5 direct sales reps to 20 and from 4 independent 1099s to 80. We will have a combined 100 Feet on the Street, representing the 4 products in the wound care market. We have taken our existing 1099s from Celularity. We've added the complete rollout of the Ametus 1099 team. The combined footprint has SANUWAVE covering every major market, every major wound care center in the country. Before today, this did not exist. This truly is the part of the combination that excites me the most is having 100 people out representing us every day. I will get into some metrics in a moment, but we plan on leveraging this footprint moving forward. I have mentioned the combinations are complementary. But as we did our diligence, we also realized that the key opinion leader community is dying for our combination therapies right now. They're looking for solutions to help wounds heal faster, more economically and last longer in the healing stage. They're excited about using dermaPACE with Biovance, UltraMIST with dermaPACE, UltraMIST with Biovance. These are all combinations that did not exist before today. This will allow the wounds to heal faster and better. It will also provide the wound centers with an opportunity to make more profitability in treating the wounds. I mentioned cost savings earlier, but some of these will be easy to put into effect, some actually rather quick and others will take time and effort with the team working on the integration planning and will drop to the bottom line in 2021. On Page 7, I want to give a quick tutorial and reminder to everyone on the wound care continuum and where we now play. Our products are in the advanced wound care market, which our patients whose wounds have not shown improvement in closing for a 4-week period. They moved from what's called acute to chronic at that point in time. We will be able to treat patients in the 2,200 wound care centers with all of the products along the advanced wound care spectrum. Right now, dermaPACE is only indicated for DFU, but UltraMIST in the biologics can treat all wounds, all wound types and have indications for all of them. So we will have a full line in the wound care spectrum with 1 call point and 100 people selling into that. On Page 8, I have mentioned this in the past, but our goal is to have a dermaPACE anywhere and everywhere that a DFU is treated. I can now say that we want an UltraMIST and Biovance and Interfyl in all those locations as well. In the U.S., that would be 2,200 wound care centers. It's a massive market, as you can see from the statistics on this page. With this acquisition, it will accelerate the rollout of dermaPACE through the cross-selling efforts into the existing customer base, but also with the 100 Feet on the Street, we'll be able to expand our addressable market in the addressable markets for UltraMIST and the biologics. On Page 9, there's a lot on this slide to digest -- there's a lot in this whole slide deck to digest. I hope investors will take the time to review these. And if they have questions either today, or at any point in the future, they should feel free to reach out so we can help you understand why we're so excited about this transformative acquisition. As mentioned earlier, we'll have 1,000 combined accounts with only 15 overlapping. So the cross-selling's already begun. The sales teams have already begun selling into each -- the new products into their existing bases this week. Our 100 people selling will be able to take all 4 products into the market. The products we are acquiring already have well-established reimbursement coverage, which we will review in a moment. So it's just a matter of getting in the door and supporting those customers with the strong relationships. I want to spend a minute -- a little more time on 2 items, international and then UltraMIST in a podiatrist office. Internationally, as many of you know, SANUWAVE had to survive over the years on international deals. And with the acquired assets, having 0 international presence, our partners overseas, our distributors have already begun to embrace the UltraMIST product and we will begin delivering shipments internationally in Q4 of this year to South Korea, Italy and hopefully, South America as well. On the UltraMIST side, one of the key findings in our diligence was around the podiatry community. A few years ago, reimbursement for the UltraMIST therapy in the office was not great. But earlier this year, the reimbursement team at UltraMIST that is coming over in this acquisition, was able to get $320 per treatment in the office for UltraMIST. And it's a treatment that happens 3 times a week. And to get you some of the economics, we rent these devices for $500 a month roughly and the applicator's a onetime fee, so high recurring revenue at $50 per application. So the gross margin for a 6- to 7-minute treatment with UltraMIST for a podiatrist is roughly $290. So with 2 treatments, it pays for its monthly rent. And right now, podiatrists are starving for revenue. Clipping toenails in the COVID era isn't paying all the bills, so they're looking for ways that they can bring in revenue to that office setting. Currently, there's around 100 UltraMISTs in podiatrist offices. There's 11,000 podiatrists that we could reach eventually. I expect this to be a big push in rollout as we move forward into the podiatry community for the in-office setting with UltraMIST. Page 10. I know I've mentioned a few times now. And if you haven't gotten the theme, and we're really excited about having 100 Feet on the Street and having 1,000 locations. The split is 20 internal direct salespeople and 80 indirect independent salespeople. I've given some metrics of how we expect those salespeople to perform. We have some outliers that are superstars and others that need some help. But in general, these are the rough metrics on what we expect from our sales team moving forward, both the direct and indirect. They will be managed internally. I have Jack on the phone right now. He's our Chief Revenue Officer. He'll be here to answer any questions that I can't answer with regard to the acquisition. I want to put in perspective, last year, Celularity had about 45 Feet on the Street. And what we're doing is taking our sales force and leveraging the Ametus relationship to expand it to the 80 independents, along with the 20 directs. We will -- the 2 focuses initially will be cross-selling internally to existing accounts and then adding new accounts throughout the next year. Pages 12 through 17 are reviews of the products, just for those who want to get into more of the product detail. Again, we've done this many times on the dermaPACE side. I want to spend brief amount on that. And then get into a little bit on UltraMIST, a little bit on the skin subs and then spend some time on reimbursement and then open it up to Q&A. So as you know, on Page 12, dermaPACE is a focused electrohydraulic shock wave to use to treat DFUs. It's a 6-minute procedure, done once a week, noninvasive. It's -- if I had to pick one thing that it's known for, it's the improvement of the perfusion. So it's a blood flow. And as everyone knows, wounds can't heal without blood flow and they can't heal if there's bacteria. So we'll talk about that in a moment as well. We're also excited that later this month, might be early September, we'll have another case series published in a peer review article, specifically showing the perfusion aspect in the wound healing that dermaPACE brings. Pages 14 and 15 will review UltraMIST. It's a low frequency noncontact ultrasound device that is delivered through a fluid mist. It promotes healing, creates micro strains, and decreases the bacterial load. And as we know, in healing wounds, as I just mentioned, you can't have an infection. So that cleaning of the bacterial load is an extremely important aspect when you're working in a wound care center setting. There's a lot of new technology coming out that can help detect and diagnose the levels of bacteria that are in the wound. And we have the only energy transfer product that can address that issue in UltraMIST. It also increases perfusion with the proper inflammatory response. It's a great product for treating all types of wounds and has indications for DFU, pressure ulcers, VLU, arterial leg ulcers, deep tissue pressure sores and surgical wounds. It's a very broad base of coverage that can kind of multi-task within a wound center setting. Over time, we hope to have dermaPACE receive all those indications as well. But right now, this allows us to expand our touch points in the wound care centers. Page 16 are the biologics. These are similar to some of the other skin substitutes on the market. They provide an extracellular matrix, which acts as a scaffold to support healing in the wound bed. So think of it as it gives the wound something to grab on to and then fill in as the wound is healing itself with growth factors and everything. Biovance and Interfyl are great products. They're produced by Celularity. Celularity is a top-notch organization that controls their own flow of the biologics, which is really important. They're not buying products from other banks, they control their own flow of product. That means that the quality that they provide is higher than any of the others that are out there. It's also important to note that this year, the FDA is cracking down on many of the skin substitute companies. There have been some reports on that that Wall Street has done. And it's really to crack down on those that kind of snuck into the skin substitute market and didn't follow the right regulatory process. So they're forcing a lot of smaller players to go through that and bigger players. The benefit we have is that Celularity went through that process and received an RFD years ago so that we do not have to go through that re-regulatory process that the FDA is forcing a lot of the skin substitute players to go through. We expect there to be a shakeout in some of the smaller players. And as that happens, it's an opportunity for us to gain share. Moving into 2021, I think a lot of the share will come both with the sales force selling, but also with the combination studies, which will have a major impact on our push in 2021. On Page 17, I won't spend a lot of time here, but one of the benefits we're getting is we're bringing the reimbursement team over from Celularity that help drive the UltraMIST reimbursement. And it's one of the things that I'm really excited about is having that team on board to help us with dermaPACE moving forward. If they can do half of what they did with UltraMIST, we're all going to be extremely happy. And it's important that we do have good coverage everywhere. The first question is, do you have FDA approval? How does it work? And then the next question is always, how am I going to get paid? And with this portfolio, we'll have 4 products that can get paid within the wound care center setting. Page 19. Again, there's a lot on this slide. I want people to spend some time on it, but I'm going to run through it rather quickly so we can get to Q&A. But I'll start with the first step. We're going to have 100 reps and they'll begin to cross-sell and leverage on the common call points. Step 2, we'll have an international footprint to leverage their products into our existing footprint. We'll begin growing the addressable markets by adding indications and showing how combination therapy can work. Step 4 is the strong pipeline that we have coming out of Celularity with new skin substitute products that we'll be licensing and bringing to market through our sales channel. We'll also be doing more clinical work to add indications and more clinical work on the combination therapies. I think we have a good strategy put in place to execute on the integration of these assets. In conclusion, on Page 20, I just wanted to summarize it so that we can, again, get to Q&A. We'll have 100 Feet on the Street. We're in 1,000 locations already that can grow up to 3,000 in the next 3 years. We don't overlap on many. We have a very strong IP portfolio. We offer end-to-end solutions in the wound care spectrum. And then we gain immediate revenue from the products. And with the cash flow from the cost savings will now a cash flow positive company and have a strong cash position on our balance sheet with good partners on the -- with Morgan Stanley on the debt side and great investors who supported us through this. Again, I wanted to give everyone that overview. We can now open it up to Q&A if people would like. And if you don't get your question answered on this call and want to reach out later, please feel free to do so. Thank you. Tom?

[Operator Instructions] We'll go first to Brooks O'Neil, Lake Street Capital.

Kevin, congratulations on the merger. It's pretty exciting. I just wanted to start off with kind of, I guess, a big picture question and ask you, historically, the wound care marketplace has been a very tough environment, both in the clinical world and in the investor world. And can you just sort of hit the high points? I know the presentation sort of hit the high points, but can you just talk about why you believe right now is the time when SANUWAVE can begin to turn that around and have success, both clinically and from a stock perspective?

Sure. Brooks, I'll talk to the clinical and strategy side. On the stock side, that's for the investors to decide on how we execute as well. But the -- right now, in the wound care world, there's a lot of changes going on. It's a big market, the chronic wound market. Diabetic foot ulcers are -- there's 1.8 million a year in the U.S. alone. Diabetes isn't going anywhere. It's only going to get worse and those wounds will get worse. And the statistics that you read on, about 15% of diabetic foot ulcers will end up in an amputation. And those that are amputated, there's a morbidity rate of 72% within 5 years. So it's -- the wound care industry as a whole is they don't have a pink button or a pin or anything or -- that they wear around it, to have people understand the cause. But it -- there's a lot of severe issues that happen in -- with wounds. And what we're trying to do is address it. We don't have a -- there's no silver bullet in wound care today. It's really about delivering tools to the wound care centers and solutions to them so they can start putting pieces together and get the wounds to heal effectively and really manage those wounds. And so that's really what we're trying to do is have a portfolio approach here, where when we combine UltraMIST with dermaPACE or UltraMIST with Biovance or dermaPACE with Biovance, we're going to have a better success rate of healing those wounds. And that's, I think, important in a few regards. One, it -- that's what the patients want and -- as they get back to their normal lives and not live in pain with the wounds that they have. The second piece of it that I think is important is that we're in a world with data and lots and lots of data that are out there. And I think as we begin to see the results from our device and how we can improve them, that's really what's going to drive the movement to our -- using both our UltraMIST and dermaPACE within the wound center setting. One, they're going to save -- the payers are going to save money because the wounds heal better and faster. But the wound centers are also going to make money because the way we offer them, the way we offer our products allows them to make a comfortable margin on reimbursement. And so we're delivering a better quality of closure to the wound, and they're getting paid for it. And we look at kind of return on investment per hour. And the gross profitability of our products on a per use basis is extremely high for these centers. So they're going to be incented to use our products because of the economics. But more importantly, it's because we'll provide closure. I think you're seeing some things out of CMS that -- with how they're looking at something called episode of care right now, which is focusing on value-based approach, not a volume-based approach to wound healing. And as that begins to get implemented over the next few years, wound center is going to be focused more on getting the wound closed in the right way, not just slapping on skin substitutes every week and charging $1,800. That game is over. And I think that's why it benefits us to show that when you use products in combination, you can really benefit.

Perfect. Let me just switch gears and ask you. I see there's tremendous opportunity with the 100 Feet on the Street you have. What do you see as the big key to really leveraging that 80% nonemployee sales force to achieve the results you hold from this combination?

It's giving them the right products and support, that's first, giving them the right training. But then it's -- these are -- they're hungry animals. I mean, it's commissions, right? They make money off these products. I mean, if they're selling band-aids, it's one thing, but these are higher ticket items, and they don't have these type of products in their portfolio. That's why they're excited about working with us, is that we have decent plans so that they can generate good income for themselves. I mean, I hate to be kind of capitalistic in that regard, but that's what's going to drive them. I mean that's what works with independent reps is you have to have a good portfolio supported clinically, supported with training and marketing, and we have that with this acquisition and then you kind of unleash them. But what's more -- as important is how you manage them and how you monitor them and make sure that you're not -- they're not just sitting around doing nothing. You got to make sure that they're making their calls, they're doing their follow-ups. Jack's on the call right now too. Jack's had some experience on managing the independent guys. So maybe, Jack, if you can spend a moment, introduce yourself, maybe spend a minute on your background, but you're our chief revenue guy, so you're going to be the one they're all reporting into.

Yes, no, absolutely. I'm Jack Schlechtweg. I've been in wound care probably for the last 15 years, different capacities. I also ran a wound care center, and I've worked with the assets for quite some time now. I think when you look at our independent sales force, to Kevin's point, the training, the focus and giving them the correct tools, and then when I say focus, with the reimbursement now with UltraMIST, they have the ability to go into their relationships that they've had for a long time, deliver them a product that's not also great for the patient, but it's also great for the bottom line of their physicians. So we're beginning our training next week to get everyone up to speed and familiar with it. And then we're going through the data and really starting to unleash our sales force on specific points where we know we can win, and we know that our technologies will be well received. So it will be a win-win for both teams.

That's great. That's fantastic. So let me just ask one last one. I may not have it all straight, but from a reimbursement perspective, are there things that need to happen down the road that are keys to achieving the kind of financial results you think are possible through this combination? Or would you say the reimbursement environment is set?

No, I mean, there are -- I mean, we're working on those and the reimbursement team, we're bringing over from Celularity's assets have had a great experience with that. Right now, it's on some of the biologics need to be working with some of the private insurers. And we'll have updates on that over the next few weeks, just where we stand with the various players and as we add additional covered lives. And so there's some that needs to happen. But from a Medicare standpoint, and remember, in the wound market, it's about 65%, 70% are Medicare of the patients. So that's the big one that you have to have nailed down. And we have great coverage for the products we're acquiring there. And then there's a plan that we'll -- we have in place to help get a broader coverage with the private insurers as well. And then we're going to leverage that team, and our existing consultants that we have at SANUWAVE to help drive our own dermaPACE reimbursement. And we're having some decent success there. I mean, we're now seeing good payments in the hospital outpatient setting with not the entire country, but a lot of it. And so that's helping us a lot with wanting to go to the 100 distributors, the 80 independents. Because now they can actually walk in and say, yes, you're going to get paid 65%, 70% of the time when you're using Medicare. So I think that's where we're at. But there's always going to be more work to do. I mean, you're never done, Brooks. I mean, then we're going to start adding more indications, and we're going to have to do more. So it's a constant battle. I think the team that we're acquiring and bringing over is fantastic. So we're excited about that.

[Operator Instructions] We'll go next to James Terwilliger with Northland Capital Markets.

Kevin, can you hear me?

I can, James.

I've got 2 or 3 quick questions. The first one is, as you sit here today in August, after getting this deal done, which was a lot of work, so a tremendous job for you and your team to get this done, what's the biggest risk that you see maybe near-term risk and longer-term risk where you sit today? We've talked a little bit about reimbursement, a little bit about the FDA cracking down, a little bit about maybe competition and, of course, execution, bringing in these 2 companies together. What is the biggest risk in the near term that you see now and maybe the biggest risk where you are longer term?

Yes. No, good question. I mean, it's a question that, quite frankly, our lenders and our Board have been all over us about are making sure we understand where the risks are. And importantly, making sure we have a plan in place so that we can address them and really work those. So the integration side, we're using the Alvarez & Marsal guys. We've got a great team from that firm. And those who aren't familiar with them, they're a restructuring firm and help on acquisitions. So that's what they're kind of experts at. We spend every day going through the Gantt chart of all the different little things, from making sure you have the right business cards to IT integration. So I feel like the integration side of the equation is running smoothly. And I'm going to knock on wood right now because it is going smoothly, and you don't know what's going to happen until it happens. But that piece of it of bringing the companies together has been surprisingly good. I think the number one thing that I worry about, and I know Jack does too is just coming out of this and making sure that the sales teams are cranking. We're taking on a big step with new products, cross-selling. There's a lot of information we got to get to our team in an entirely new group that's going to be working with us. So it's -- that's probably the biggest challenge, James, is going to be making sure that integration goes well. And luckily, we have the tools in place and the people in place to manage it. They're going to be on sales force. We have the pipelines. We have a database that helps manage territories. So we can see, are we getting our fair share in San Antonio? And we really drilled down to that level. So when a salesperson says, "Oh, I'm doing 20,000 in this region." Well, if the region is doing 20 million, that's not that good. But if that region is doing 30,000, then you're 66% market share, that's pretty good. So I think we're going to really drive a lot of this data-driven and making sure people are held accountable. So that's what we're trying to do. How that gets implemented, James, is the part that we're putting the resources behind. But that's the challenge -- the biggest challenge we're facing will be that. And it's going to take a few months and quarters for us to get that under our belt where we say, yes, we nailed it.

Okay. And my second question, last question, is really on the cross-selling opportunity. I just want to make sure I'm thinking about this correctly. SANUWAVE is technically the smaller company, even though you're acquiring the larger company. So in the United States, the cross-selling opportunity would really be taking the SANUWAVE technology, which is, to some degree, recently been launched in the United States with reimbursement into the Celularity installed base, how do you manage that? And then on the other side, in the international markets, it's really going to be SANUWAVE's installed base that you're going to be bringing in the Celularity products. How should I think about the cross-selling opportunity, both in the near term and longer term?

Yes. No, we did a lot of modeling on this in the diligence session of thinking about how that will accelerate things. So first on this -- the dermaPACE device into those existing UltraMIST accounts, where they have a strong relationship with the wound care center. Those reps, those 20, 80, 100 reps are going to be when they're calling on UltraMIST, they're also going to be coming in and saying, "Hey, let's talk dermaPACE" and provide them with the right marketing materials, the right clinical, the right medical education so that when they walk in, they're comfortable with that. And that -- so there's a big opportunity there. I mean, we're in 130-plus locations for dermaPACE today, I think that can increase dramatically as these account managers take the product. And again, they're going to be incented to bring them in. I mean, it's a revenue opportunity for them to get more market share within those wound centers. On our side, domestically, we've got about 60 podiatry offices using our device right now. And those are all going to be near-term UltraMIST targets of just all right, how do we get our existing guys that aren't using UltraMIST to use it. So there's some cross-selling domestically that the sales team is getting trained on as we speak. We'll -- we're completing training end of next week. And they'll all be kind of geared up with their commission structures ready to go and attack. On the international side, as part of the diligence, our big partners, we've been talking with them for a period of time now on exactly how many UltraMIST orders they want. So we think we'll be hitting the ground running in Q4 with bringing those products out internationally. The biologics products really don't -- it's a different animal internationally. They really don't do well and aren't accepted the way they are here in the U.S. And so it really is more of the UltraMIST play on the international front.

Okay. I'll jump back in queue. But again, congratulations on all the work, and congratulations on getting this transformational acquisition done, closed. Congratulations.

[Operator Instructions] We'll take our next question from [ Sachin Shah ], private investor.

I think you pretty much answered most of my questions, but one question I had was about, have you guys done studies about the synergistic use of both UltraMIST and dermaPACE together? And how working in combination, it's a much better therapy for wounds than using them isolated? And the second question is after this whole transaction has been sort of put together and working fluidly, like who should we think of U.S. in terms of your biggest competitor? And why are you guys still better than them?

Good questions. On the combo therapy, we don't have any clinical specific work completed yet. We have anecdotal work from the field. So, like, Dr. Anna Sanchez, who's one of our power users of dermaPACE. She has used UltraMIST for a while. She loves using UltraMIST and then using dermaPACE. And her results -- I think there was a case series we showed in one of our Testimonial Tuesdays, and that was a combo of UltraMIST and dermaPACE. And without that, the patient was going to lose the ankle. That was -- they were geared up to have an amputation 2 weeks, and they did it with UltraMIST, then they used dermaPACE and no amputation occurred. So we have anecdotal. But what we plan to do is starting in September, where we have a clinical group, it's a very well-known in the wound care industry KOL that will begin that protocol studies of how to mix and match UltraMIST and dermaPACE and -- with Biovance as well. So it will be the 3 products. And it will be a series of -- case series, which will then lead into a clinical study showing how the combinations work. But we'll have that probably published in early next year. The goal is really to have those combination therapies geared up for the spring of next year and showing how the combinations do work and can show statistical significantly better healing than anyone else. As far as competitors, on the energy transfer side, I guess the closest one would be like a Misonix that has a debridement product -- an ultrasound debridement product. And they just bought a -- the Solsys guys, the TheraSkin guys. So they would probably be the closest, but they don't have -- there is just more on cutting the wound, not necessarily regenerating. And so it's not a great comparison, but that would be probably one of the closer ones. Beyond that, the energy transfer space is not -- it's just not that many of us in it. And so we've kind of somewhat consolidated that base down to us to -- of products that can use energy to help the body heal itself. And then we have the biologics to add on top of it. And again, that's, I think, where the sales team will do a great job getting in there and showing how 1 plus 1 makes more than 2 in this example. So that's what I'd think of.

Okay. And my one last question in terms of what -- from a market perspective or in terms of marketing yourself, what is your plan on sort of getting the story out there now to the Street? I know you guys are going to do a reverse, you guys are looking to get on to the NASDAQ. Can you talk a little bit about that?

Yes. We're -- so we had a shareholder vote earlier this summer, and the shareholders voted in favor of all the things that the Board recommended. Included in there -- I mean, we're using this transformation really as a chance to really upgrade everything. And so we reincorporated from Nevada to Delaware. It doesn't seem like a big deal, but it is, right? And then we'll have the shares authorized to complete this acquisition, which happened. We did the right financing. We've got the right balance sheet. We've got the right partner on the lending side. And we're -- so there's a lot of things that needed to take place. The NASDAQ application has been filed. So we'll hear from them at some point on that up list. And at that point, would affect the reverse and do that. So those are things that are in the pipeline. And then we'll be in front of a lot of investors at different conferences. I know they're virtual these days. But we're also going to get on the road and talk to people. I mean, we've got a really compelling story to tell. But the most important thing is focusing on the execution of the business because if that -- if we perform there, the other stuff tends to take care of itself. And so that's really where Jack and team and the rest of our team are going to be Uber focused.

And we do have a follow-up question from Brooks O'Neil with Lake Street Capital.

I was curious, it sounded like a lot of the growth you expect to come from new clinic wins, new clinic additions. Can you speak at all to your hopes and expectations with regard to sort of same clinic growth or growing the existing revenue from existing customers as a result of the merger here?

Yes. I mean, there's a few ways to look at it, Brooks. There is -- we have a footprint of existing accounts that -- and that's where Jack will be managing the sales force and the reps to grow the existing accounts with both cross-selling, but also making sure that they understand that we have a really strong biologics pipeline. So training them on how to get and not replace necessarily, but really supplant some of the other biologics they might be using with the Biovance. Right now, there's not a lot of -- there's not as much overlap as there could be with the existing accounts. So part of that's been energizing the existing accounts. I would expect to see same -- I guess, same source sales because we're adding more products into the mix. It will be a good portion of what we are seeing grow, kind of the per account growth should increase just because we're adding dermaPACE to their bucket, we're adding UltraMIST, Biovance and Interfyl to our bucket. And then on the new accounts, every account manager, every account salesperson is going to have a certain quota of adding new customers. We can't just have them sit back and get their commissions off of like one account, they're going to be incented. And we're using targeting database that we have, it's the CMS database to target where the ripe accounts are so that -- we give them the tools so they can go after the accounts that matter and really focus on growing that. And then lastly, we're adding Ametus to the mix. Ametus has not carried UltraMIST, Biovance or Interfyl and the same way customized medical, which is the other 1099, big 1099 that we're using has never carried dermaPACE. And so those are, I think, big expansion opportunities that they should be able to pick up new accounts and grow those by adding our products to their portfolio that they're representing.

Great. And then just one more. Do you see a need to add to your sort of infrastructure to support the 100 sales person organization? Or do you feel like you're in a pretty good place to manage those folks where you are today?

Yes -- I mean, Jack has it all handled by himself. We don't need anyone else.

He is a hell of a guy.

Yes. Yes.

He is. He is Superman. No, we're building out a team under -- with him, Brooks. There'll be -- we'll have some data people helping us that we're bringing on board that we've identified. We'll have some senior key account managers that manage more of the national accounts, GPO persons coming over to help us and then we'll have a whole kind of marketing person coming on that -- so there is some infrastructure that comes on, but it's all wildly accretive because it's going to help fuel the sales team. So -- and right now, it's really just getting the training done and then bringing those people on board to help us grow and support that. You really need -- you need good clinical, you need good reimbursement, you need good marketing. And if you have that support mechanism in place, then the sales team can -- as long as you give them the tools to go sell with great product, which is what we have on this acquisition. With the combined entity, it's really differentiates us and is powerful. But if you have that support infrastructure of clinical reimbursement and marketing, and we can target and then follow-up using sales force and other tools, there's no reason why we can't be wildly successful.

And at this time, there are no further questions, Mr. Richardson, I turn the call back over to you for any closing comments.

Great. Well, thank you, everyone. It's a big day for us. We're excited about the acquisition and what we're doing. We're excited about the transformation and really bringing it to the next level as a company. We thank everyone that supported us in this transaction. And if anyone has any further questions, please feel free to reach out. I'm looking forward to having some success in talking about this on our quarterly conference calls. Thank you very much.

Ladies and gentlemen, this does conclude today's conference. We appreciate your participation. You may disconnect at this time. Have a great day.