NASDAQ:NEPH Nephros Q2 2024 Earnings Report $1.80 -0.05 (-2.70%) Closing price 03:59 PM EasternExtended Trading$1.82 +0.01 (+0.83%) As of 04:01 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. Earnings HistoryForecast Nephros EPS ResultsActual EPS-$0.03Consensus EPS -$0.01Beat/MissMissed by -$0.02One Year Ago EPSN/ANephros Revenue ResultsActual Revenue$3.25 millionExpected RevenueN/ABeat/MissN/AYoY Revenue GrowthN/ANephros Announcement DetailsQuarterQ2 2024Date8/8/2024TimeAfter Market ClosesConference Call DateThursday, August 8, 2024Conference Call Time4:30PM ETUpcoming EarningsNephros' Q1 2025 earnings is scheduled for Thursday, May 8, 2025Conference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfilePowered by Nephros Q2 2024 Earnings Call TranscriptProvided by QuartrAugust 8, 2024 ShareLink copied to clipboard.There are 5 speakers on the call. Operator00:00:00Good day and welcome to the Nephros Inc. 2nd Quarter 2024 Financial Results Conference Call. All participants will be in listen only mode. Please note today's event is being recorded. I'd now like to turn the conference over to Kieran Smith with Investor Relations. Operator00:00:36Please go ahead. Good afternoon, everyone, and Speaker 100:00:40welcome to Nephros' Q2 2024 Earnings Conference Call. This is Kieran Smith with PCG Advisory. Thank you all for participating in Nephros' Q2 2024 Conference Call. Before we begin, I would like to remind you that this call will include forward looking statements regarding the operations and future results of Nephros. For a discussion of these forward looking statements, please review Nephros' SEC filings, including Forms 10 ks and 10 Q, which identify specific factors that may cause actual results or events to differ materially from those described in the forward looking statements. Speaker 100:01:18Factors that may affect the company's results include, but are not limited to, Nephros' ability to successfully, timely and cost effectively market and sell its products and service offerings the rate of adoption of its products and services by hospitals and other healthcare providers the success of its commercialization efforts and the effect of existing and new regulatory requirements on Nephros' business and other economic and competitive factors. The content of this conference call contains time sensitive information that is accurate only as of the date of the live call, today, August 8, 2024. The company undertakes no obligation to revise or update any statements to reflect events or circumstances after the date of this conference call, except as required by law. Now, I would like to turn the call over to Nephros' President and Chief Executive Officer, Robert Banks. Robert, please go ahead. Speaker 200:02:10Thank you, Kieran, and good afternoon, everyone. We appreciate you joining us for our Q2 twenty twenty four earnings call. I want to start by expressing my gratitude to the entire Nephros team for their continued hard work and dedication. Today, we reported our 2024 2nd quarter results. As in the previous quarter, we began to break out the programmatic business and emergency response business in order to provide greater clarity of the health of the core business. Speaker 200:02:43Programmatic describes the sales of filters as part of an ongoing long term water management solution for the control of pathogens in water. While the emergency response business can fluctuate with large one time orders and that's just due to the nature of that business. I'm proud to report that in the first half of twenty twenty four, we have achieved the highest number of active customer sites ever with a 15% increase over last year adding over 300 customers in the past 12 months. In Q2, we have managed the highest retention rate in the past 6 quarters. These reasons why I am very proud of all the Nephros team for executing on such a high and consistent level. Speaker 200:03:32In the Q2 of 2024, we experienced a very positive increase in non emergency response business, up 8% compared to Q2 of last year. This solid growth was offset by a 92% year over year decline in our smaller emergency response business resulting in 8% decline overall in Q2 total revenue. We also just reported a 28% year over year improvement in our net loss as we continue to focus on cash flow generation and overall profitability. We believe that one contributor to the decline in the emergency response business is the reduced stringency of waterborne risk response in territories previously committed to both proactive filtration measures and robust corrective actions. We continue to focus on key initiatives that drive long term growth. Speaker 200:04:35One significant achievement is the expansion of our digital tools, including the filter tracking app, which is designed to enhance customer engagement and ensure consistent filter replacements. The speed of implementation has not yet met our expectations as we continue to fine tune the platform and online operability. Additionally, we are advancing our capabilities to address the growing concern around nano and microplastics and MPs. Leveraging our unique position with the smallest pore size in the market, which is a key competitive strength and allows us to offer an excellent solution to this tire problem. We are seeking relationships with other entities and OEMs that may purchase and integrate our solution to their offerings enabling them to make the claim of the mediating NMPs. Speaker 200:05:35Looking ahead, we are also strategically positioning ourselves to capitalize on growth opportunities in various sectors beyond hospitals to areas like dental practices, sterile processing and endoscopy processing where we are seeing there is clear growth opportunity. I remain excited about our overall value proposition and long term growth prospects while focusing on profitability and return on investment for our stakeholders as we help the world meet its critical water filtration demands. I will now turn the call over to our CFO, Judy Kreindel to discuss our financial performance in detail. Judy? Speaker 300:06:23Thank you, Robert. I'm pleased to provide an overview of our financial performance for the Q2 of 2024. Our Q2 2024 net revenue was $3,250,000 down 8% compared to Q2 2023. As Robert alluded to, this decrease reflects the continued low contribution from emergency revenue. Excluding the emergency response revenue, sales increased 8% due in part to the increasing success from our longer term and newer sales personnel hired in 2023. Speaker 300:06:58Our gross margin remains strong at 59%, flat year over year and a slight decrease from 62% in the Q1 of 2024. The sequential decrease was due to increased shipping expenses and additional reserves primarily for slow moving commercial products. Despite these challenges, our product gross margins before shipping and non cash reserve indicating strong underlying product performance. We achieved a 33% improvement in our net loss of $289,000 down from the $433,000 loss in the Q2 of 2023. This was primarily due to reduced SG and A expenses, which declined by 13%, driven by lower stock compensation, bonus accruals, commissions and professional fees. Speaker 300:07:52Adjusted EBITDA improved to a loss of $133,000 in the Q2 of 2024 from a loss of $183,000 in the prior year period. Moving on to the 6 month period, sales for the 6 months ending June 30, 2024 declined by 6% from the prior year period. But again, excluding the emergency response revenue, sales increased by 10%. Gross margins improved to 61% in the first half of 2024 from 58% in the prior year period. SG and A expenses decreased by 6% in the first half of twenty twenty four versus the prior year period due to a decrease in bonus accrual, sales commission expense, stock compensation expense and professional fees, offset in part by an increase in salary expense. Speaker 300:08:47Our net loss decreased 38% to $458,000 in the first half of twenty twenty four from $739,000 loss in the prior year period. Our balance sheet remains strong with a cash balance of approximately $3,100,000 as of June 30, 2020 4. This is a decrease from $4,300,000 at the end of the first the end of the last year, 2023, mainly due to increased inventory and accounts receivable and the payments of annual bonuses. Despite these changes, we continue to operate debt free providing us with flexibility to invest in growth initiatives. As we look to the future, we are focused on maintaining financial discipline, while investing strategically in areas that will drive long term value. Speaker 300:09:41This includes optimizing our product pricing, improving operational efficiencies and exploring strategic opportunities for expansion. I will now turn the call back to Robert for some concluding remarks. Robert? Speaker 200:09:56Thank you, Judy. As we move forward, NetVRus is well positioned to continue to grow its trajectory by focusing on innovation, customer engagement and strategic expansion. We remain committed to providing high quality water filtration solutions that meet the needs of our evolving investors, partners and the entire Nephros team for their continued support and dedication. We look forward to sharing more updates on our progress in the coming quarters. This concludes our formal presentation. Speaker 200:10:33We will now open the floor for questions. Operator, please open the call for Q and A. Operator00:10:39Thank you. We will now begin the question and answer session. And today's first question comes from Tom McGovern with Maxim Group. Please go ahead. Speaker 400:11:11Hey, guys. How's it going? So, yes, so first question, I just wanted to see if you guys could elaborate a little bit more on the reduced stringency for the waterborne risk response in certain territories. Just wondering if there was a specific reason you guys could identify for that reduced stringency? And then maybe kind of a follow-up question on that is with the ASHRAE-five fourteen, I believe it is the standard that came out, I think it was at the end of last year. Speaker 400:11:38Just kind of curious if you could give an update on that. I know you guys are doing a good job of trying to inform clients of that, but have you guys maybe a shift in clients that guideline applies to in terms of reorder rate? Any color on that would be very helpful. Thanks. Speaker 200:11:53Yes. Thanks for the question and good to talk to you again, Tom. So on the first question, identifying any specific actions or things that may have happened, If I look specifically at Ohio and the Department of Health, their system was basically overwhelmed with number of cases and urgencies and positive test responses. So the mentality changed that in order not to overwhelm the system, they changed that stance. They stopped testing so excessively and reverted back to a method of letting each individual entity handle the situation. Speaker 200:12:30Now not to say that there is a lack in care of the importance of patients, but coming out in the future in that same region, Ohio Administrative Code Rule Number 3,701-2207, it's a memorandum requiring testing. And in order for you to obtain a hospital license, you'll have to show that you've tested over some period. So that starts in October 1 this year. So we could see a return to some higher level of those emergency responses and then other states and areas in the region following suit. I'm seeing similar legislation in New Jersey as well. Speaker 200:13:08So that I think is a big influence based on the second part of your question of the ASHRAE guidelines and that's now requiring testing as well. So I think that those two influences coming down the pipe will could change that. But going forward, I cannot rely on emergency response as part of the forecast since it is something in a more non controllable state of business and so on. Hope that answers your question. Despite that emergency response, you'll see that core is still strong, maintaining kind of an average around that double digit growth trajectory, which is impressive in the time that we have today. Speaker 200:13:46So thanks for that question. Speaker 400:13:49Got you. Appreciate it. And then I have one more and I can jump back in the queue. So this is just on the filter tracker. So obviously, rollout seems to be maybe not quite as rapid as you had expected as you guys are kind of working through some kinks for maybe adding improvements to the platform. Speaker 400:14:05So I was just wondering if you could give an update on kind of how you're seeing this rollout. Last time we spoke, you said Speaker 200:14:11it was kind of like Speaker 400:14:11a 12 month implementation timeline, which would kind of have it fully rolled out and integrated by the end of the Q1 in 'twenty five. Is that still the case you guys kind of was that kind of possible delays cooked into that timeline? Or now do you expect it to maybe be pushed to the end of second quarter? And then just kind of a follow-up on that would just be, have you seen changes in reorder rates from the clients that have the prototype of this? Have you seen that it's been working? Speaker 400:14:38Any commentary you can have on initial success of the platform would be helpful as well. Thank you. Speaker 200:14:44Great question. And the filter tracker app we were talking about, we do have to come up with a better name than that, boring name, but the app was having some issues, but we knew they would have issues. The offline version of it, many of these filters are located in parts of hospitals or patient care facilities that don't have good reception. So the scanning and that part of the tool had to be updated and revamped and then so that it works on most phones or all phones. It was working fine on some. Speaker 200:15:13So those kinks and problems seem to have been worked out as of very recently. Places where we are using it are full service accounts that were already kind of changing their filters on a regular basis. But kind of alluded to or the underlying problem your question is addressing is the reorder rate. These are people who have programmatic long term water treatment plans using our filters, but then for whatever reason are not changing them on a regular basis. They may not have to stop, they forget about them, the nurses doesn't complain, so they leave it alone. Speaker 200:15:52Whole number of reasons why the filters aren't getting changed out on a regular basis, but I do believe that's a low hanging fruit easy problem that we'll be able to rectify once we get this filter tracker and other of these digital online tools in place to better monitor and keep up with that business. Thanks for asking. That's a good question. Speaker 400:16:12Got you. I appreciate that. And just one last thing. I know you guys commented on you added 300 accounts, active accounts recently over the past 12 months, was there possibly 6 months, I have to go back and check. But did you guys give us the total number of active accounts as of the end of the second quarter? Speaker 400:16:29I know that's a figure you used to give. I'm not sure if you're still planning on doing that. Speaker 200:16:35Yes. Let me one second, unless you have it for Trudy, I'll find it in about 3 seconds. Seconds. Yes. Speaker 300:16:43We will look at that number for you. Speaker 200:16:46Total back to sites at the end of Q2 was 1384. Speaker 400:16:54All right, guys. Great. I appreciate you taking the time to answer my questions and I'll hop back in queue. Appreciate it. No Speaker 200:17:00problem. Thank you. Operator00:17:02Thank you. And this concludes our question and answer session. I'd like to turn the conference back over to the company for any closing remarks. Speaker 200:17:27Thank you. And I appreciate everyone joining the call today. And we look forward to talking again in the future. Please have a great rest of your day and week. Operator00:17:36Thank you. This concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallNephros Q2 202400:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsPress Release(8-K)Quarterly report(10-Q) Nephros Earnings HeadlinesNephros (NEPH) to Release Earnings on ThursdayMay 6 at 3:29 AM | americanbankingnews.comNephros Schedules First Quarter 2025 Financial Results Conference CallApril 30, 2025 | finance.yahoo.comREVEALED: Elon’s Secret Master Plan “AGENDA X”REVEALED: Elon's Secret Master Plan "AGENDA X" For almost 30 years, Elon worked on his master plan in secret. Now, leaked computer code confirms Elon is moments away from launching a revolutionary financial technology… And Silicon Valley insider Jeff Brown says it could hand early investors who missed Tesla, "the ultimate second chance" to get rich.May 6, 2025 | Brownstone Research (Ad)Nephros expands filtration line with new S100 In-Line filterApril 30, 2025 | investing.comNephros Launches New S100 In-Line MicrofilterApril 28, 2025 | finance.yahoo.comNephros Full Year 2024 Earnings: Beats ExpectationsMarch 28, 2025 | finance.yahoo.comSee More Nephros Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Nephros? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Nephros and other key companies, straight to your email. Email Address About NephrosNephros (NASDAQ:NEPH), a commercial-stage company, develops and sells water solutions to the medical and commercial markets in the United States. It offers ultrafiltration products that are used in dialysis centers for the removal of biological contaminants from water and bicarbonate concentrate; and in hospitals for the prevention of infection from waterborne pathogens, such as legionella and pseudomonas, as well as in military and outdoor recreation, commercial, and other healthcare facilities. The company also manufactures and sells water filters that enhance the taste and odor of water, as well as reduce biofilm, cysts, particulates, and scale build-up in downstream equipment. It markets its products to food service, hospitality, convenience store, and health care markets, as well as medical institutions. The company was incorporated in 1997 and is headquartered in South Orange, New Jersey.View Nephros ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Palantir Stock Drops Despite Stellar Earnings: What's Next?Is Eli Lilly a Buy After Weak Earnings and CVS-Novo Partnership?Is Reddit Stock a Buy, Sell, or Hold After Earnings Release?Warning or Opportunity After Super Micro Computer's EarningsAmazon Earnings: 2 Reasons to Love It, 1 Reason to Be CautiousRocket Lab Braces for Q1 Earnings Amid Soaring ExpectationsMeta Takes A Bow With Q1 Earnings - Watch For Tariff Impact in Q2 Upcoming Earnings ARM (5/7/2025)AppLovin (5/7/2025)Fortinet (5/7/2025)MercadoLibre (5/7/2025)Cencora (5/7/2025)Carvana (5/7/2025)Walt Disney (5/7/2025)Emerson Electric (5/7/2025)Johnson Controls International (5/7/2025)Lloyds Banking Group (5/7/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. Start Your 30-Day Trial MarketBeat All Access Features Best-in-Class Portfolio Monitoring Get personalized stock ideas. Compare portfolio to indices. Check stock news, ratings, SEC filings, and more. Stock Ideas and Recommendations See daily stock ideas from top analysts. Receive short-term trading ideas from MarketBeat. Identify trending stocks on social media. Advanced Stock Screeners and Research Tools Use our seven stock screeners to find suitable stocks. Stay informed with MarketBeat's real-time news. Export data to Excel for personal analysis. Sign in to your free account to enjoy these benefits In-depth profiles and analysis for 20,000 public companies. Real-time analyst ratings, insider transactions, earnings data, and more. Our daily ratings and market update email newsletter. Sign in to your free account to enjoy all that MarketBeat has to offer. Sign In Create Account Your Email Address: Email Address Required Your Password: Password Required Log In or Sign in with Facebook Sign in with Google Forgot your password? Your Email Address: Please enter your email address. Please enter a valid email address Choose a Password: Please enter your password. Your password must be at least 8 characters long and contain at least 1 number, 1 letter, and 1 special character. Create My Account (Free) or Sign in with Facebook Sign in with Google By creating a free account, you agree to our terms of service. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
There are 5 speakers on the call. Operator00:00:00Good day and welcome to the Nephros Inc. 2nd Quarter 2024 Financial Results Conference Call. All participants will be in listen only mode. Please note today's event is being recorded. I'd now like to turn the conference over to Kieran Smith with Investor Relations. Operator00:00:36Please go ahead. Good afternoon, everyone, and Speaker 100:00:40welcome to Nephros' Q2 2024 Earnings Conference Call. This is Kieran Smith with PCG Advisory. Thank you all for participating in Nephros' Q2 2024 Conference Call. Before we begin, I would like to remind you that this call will include forward looking statements regarding the operations and future results of Nephros. For a discussion of these forward looking statements, please review Nephros' SEC filings, including Forms 10 ks and 10 Q, which identify specific factors that may cause actual results or events to differ materially from those described in the forward looking statements. Speaker 100:01:18Factors that may affect the company's results include, but are not limited to, Nephros' ability to successfully, timely and cost effectively market and sell its products and service offerings the rate of adoption of its products and services by hospitals and other healthcare providers the success of its commercialization efforts and the effect of existing and new regulatory requirements on Nephros' business and other economic and competitive factors. The content of this conference call contains time sensitive information that is accurate only as of the date of the live call, today, August 8, 2024. The company undertakes no obligation to revise or update any statements to reflect events or circumstances after the date of this conference call, except as required by law. Now, I would like to turn the call over to Nephros' President and Chief Executive Officer, Robert Banks. Robert, please go ahead. Speaker 200:02:10Thank you, Kieran, and good afternoon, everyone. We appreciate you joining us for our Q2 twenty twenty four earnings call. I want to start by expressing my gratitude to the entire Nephros team for their continued hard work and dedication. Today, we reported our 2024 2nd quarter results. As in the previous quarter, we began to break out the programmatic business and emergency response business in order to provide greater clarity of the health of the core business. Speaker 200:02:43Programmatic describes the sales of filters as part of an ongoing long term water management solution for the control of pathogens in water. While the emergency response business can fluctuate with large one time orders and that's just due to the nature of that business. I'm proud to report that in the first half of twenty twenty four, we have achieved the highest number of active customer sites ever with a 15% increase over last year adding over 300 customers in the past 12 months. In Q2, we have managed the highest retention rate in the past 6 quarters. These reasons why I am very proud of all the Nephros team for executing on such a high and consistent level. Speaker 200:03:32In the Q2 of 2024, we experienced a very positive increase in non emergency response business, up 8% compared to Q2 of last year. This solid growth was offset by a 92% year over year decline in our smaller emergency response business resulting in 8% decline overall in Q2 total revenue. We also just reported a 28% year over year improvement in our net loss as we continue to focus on cash flow generation and overall profitability. We believe that one contributor to the decline in the emergency response business is the reduced stringency of waterborne risk response in territories previously committed to both proactive filtration measures and robust corrective actions. We continue to focus on key initiatives that drive long term growth. Speaker 200:04:35One significant achievement is the expansion of our digital tools, including the filter tracking app, which is designed to enhance customer engagement and ensure consistent filter replacements. The speed of implementation has not yet met our expectations as we continue to fine tune the platform and online operability. Additionally, we are advancing our capabilities to address the growing concern around nano and microplastics and MPs. Leveraging our unique position with the smallest pore size in the market, which is a key competitive strength and allows us to offer an excellent solution to this tire problem. We are seeking relationships with other entities and OEMs that may purchase and integrate our solution to their offerings enabling them to make the claim of the mediating NMPs. Speaker 200:05:35Looking ahead, we are also strategically positioning ourselves to capitalize on growth opportunities in various sectors beyond hospitals to areas like dental practices, sterile processing and endoscopy processing where we are seeing there is clear growth opportunity. I remain excited about our overall value proposition and long term growth prospects while focusing on profitability and return on investment for our stakeholders as we help the world meet its critical water filtration demands. I will now turn the call over to our CFO, Judy Kreindel to discuss our financial performance in detail. Judy? Speaker 300:06:23Thank you, Robert. I'm pleased to provide an overview of our financial performance for the Q2 of 2024. Our Q2 2024 net revenue was $3,250,000 down 8% compared to Q2 2023. As Robert alluded to, this decrease reflects the continued low contribution from emergency revenue. Excluding the emergency response revenue, sales increased 8% due in part to the increasing success from our longer term and newer sales personnel hired in 2023. Speaker 300:06:58Our gross margin remains strong at 59%, flat year over year and a slight decrease from 62% in the Q1 of 2024. The sequential decrease was due to increased shipping expenses and additional reserves primarily for slow moving commercial products. Despite these challenges, our product gross margins before shipping and non cash reserve indicating strong underlying product performance. We achieved a 33% improvement in our net loss of $289,000 down from the $433,000 loss in the Q2 of 2023. This was primarily due to reduced SG and A expenses, which declined by 13%, driven by lower stock compensation, bonus accruals, commissions and professional fees. Speaker 300:07:52Adjusted EBITDA improved to a loss of $133,000 in the Q2 of 2024 from a loss of $183,000 in the prior year period. Moving on to the 6 month period, sales for the 6 months ending June 30, 2024 declined by 6% from the prior year period. But again, excluding the emergency response revenue, sales increased by 10%. Gross margins improved to 61% in the first half of 2024 from 58% in the prior year period. SG and A expenses decreased by 6% in the first half of twenty twenty four versus the prior year period due to a decrease in bonus accrual, sales commission expense, stock compensation expense and professional fees, offset in part by an increase in salary expense. Speaker 300:08:47Our net loss decreased 38% to $458,000 in the first half of twenty twenty four from $739,000 loss in the prior year period. Our balance sheet remains strong with a cash balance of approximately $3,100,000 as of June 30, 2020 4. This is a decrease from $4,300,000 at the end of the first the end of the last year, 2023, mainly due to increased inventory and accounts receivable and the payments of annual bonuses. Despite these changes, we continue to operate debt free providing us with flexibility to invest in growth initiatives. As we look to the future, we are focused on maintaining financial discipline, while investing strategically in areas that will drive long term value. Speaker 300:09:41This includes optimizing our product pricing, improving operational efficiencies and exploring strategic opportunities for expansion. I will now turn the call back to Robert for some concluding remarks. Robert? Speaker 200:09:56Thank you, Judy. As we move forward, NetVRus is well positioned to continue to grow its trajectory by focusing on innovation, customer engagement and strategic expansion. We remain committed to providing high quality water filtration solutions that meet the needs of our evolving investors, partners and the entire Nephros team for their continued support and dedication. We look forward to sharing more updates on our progress in the coming quarters. This concludes our formal presentation. Speaker 200:10:33We will now open the floor for questions. Operator, please open the call for Q and A. Operator00:10:39Thank you. We will now begin the question and answer session. And today's first question comes from Tom McGovern with Maxim Group. Please go ahead. Speaker 400:11:11Hey, guys. How's it going? So, yes, so first question, I just wanted to see if you guys could elaborate a little bit more on the reduced stringency for the waterborne risk response in certain territories. Just wondering if there was a specific reason you guys could identify for that reduced stringency? And then maybe kind of a follow-up question on that is with the ASHRAE-five fourteen, I believe it is the standard that came out, I think it was at the end of last year. Speaker 400:11:38Just kind of curious if you could give an update on that. I know you guys are doing a good job of trying to inform clients of that, but have you guys maybe a shift in clients that guideline applies to in terms of reorder rate? Any color on that would be very helpful. Thanks. Speaker 200:11:53Yes. Thanks for the question and good to talk to you again, Tom. So on the first question, identifying any specific actions or things that may have happened, If I look specifically at Ohio and the Department of Health, their system was basically overwhelmed with number of cases and urgencies and positive test responses. So the mentality changed that in order not to overwhelm the system, they changed that stance. They stopped testing so excessively and reverted back to a method of letting each individual entity handle the situation. Speaker 200:12:30Now not to say that there is a lack in care of the importance of patients, but coming out in the future in that same region, Ohio Administrative Code Rule Number 3,701-2207, it's a memorandum requiring testing. And in order for you to obtain a hospital license, you'll have to show that you've tested over some period. So that starts in October 1 this year. So we could see a return to some higher level of those emergency responses and then other states and areas in the region following suit. I'm seeing similar legislation in New Jersey as well. Speaker 200:13:08So that I think is a big influence based on the second part of your question of the ASHRAE guidelines and that's now requiring testing as well. So I think that those two influences coming down the pipe will could change that. But going forward, I cannot rely on emergency response as part of the forecast since it is something in a more non controllable state of business and so on. Hope that answers your question. Despite that emergency response, you'll see that core is still strong, maintaining kind of an average around that double digit growth trajectory, which is impressive in the time that we have today. Speaker 200:13:46So thanks for that question. Speaker 400:13:49Got you. Appreciate it. And then I have one more and I can jump back in the queue. So this is just on the filter tracker. So obviously, rollout seems to be maybe not quite as rapid as you had expected as you guys are kind of working through some kinks for maybe adding improvements to the platform. Speaker 400:14:05So I was just wondering if you could give an update on kind of how you're seeing this rollout. Last time we spoke, you said Speaker 200:14:11it was kind of like Speaker 400:14:11a 12 month implementation timeline, which would kind of have it fully rolled out and integrated by the end of the Q1 in 'twenty five. Is that still the case you guys kind of was that kind of possible delays cooked into that timeline? Or now do you expect it to maybe be pushed to the end of second quarter? And then just kind of a follow-up on that would just be, have you seen changes in reorder rates from the clients that have the prototype of this? Have you seen that it's been working? Speaker 400:14:38Any commentary you can have on initial success of the platform would be helpful as well. Thank you. Speaker 200:14:44Great question. And the filter tracker app we were talking about, we do have to come up with a better name than that, boring name, but the app was having some issues, but we knew they would have issues. The offline version of it, many of these filters are located in parts of hospitals or patient care facilities that don't have good reception. So the scanning and that part of the tool had to be updated and revamped and then so that it works on most phones or all phones. It was working fine on some. Speaker 200:15:13So those kinks and problems seem to have been worked out as of very recently. Places where we are using it are full service accounts that were already kind of changing their filters on a regular basis. But kind of alluded to or the underlying problem your question is addressing is the reorder rate. These are people who have programmatic long term water treatment plans using our filters, but then for whatever reason are not changing them on a regular basis. They may not have to stop, they forget about them, the nurses doesn't complain, so they leave it alone. Speaker 200:15:52Whole number of reasons why the filters aren't getting changed out on a regular basis, but I do believe that's a low hanging fruit easy problem that we'll be able to rectify once we get this filter tracker and other of these digital online tools in place to better monitor and keep up with that business. Thanks for asking. That's a good question. Speaker 400:16:12Got you. I appreciate that. And just one last thing. I know you guys commented on you added 300 accounts, active accounts recently over the past 12 months, was there possibly 6 months, I have to go back and check. But did you guys give us the total number of active accounts as of the end of the second quarter? Speaker 400:16:29I know that's a figure you used to give. I'm not sure if you're still planning on doing that. Speaker 200:16:35Yes. Let me one second, unless you have it for Trudy, I'll find it in about 3 seconds. Seconds. Yes. Speaker 300:16:43We will look at that number for you. Speaker 200:16:46Total back to sites at the end of Q2 was 1384. Speaker 400:16:54All right, guys. Great. I appreciate you taking the time to answer my questions and I'll hop back in queue. Appreciate it. No Speaker 200:17:00problem. Thank you. Operator00:17:02Thank you. And this concludes our question and answer session. I'd like to turn the conference back over to the company for any closing remarks. Speaker 200:17:27Thank you. And I appreciate everyone joining the call today. And we look forward to talking again in the future. Please have a great rest of your day and week. Operator00:17:36Thank you. This concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.Read morePowered by