Savvy Trades and Investments

[2morrowsGains]

SRTS...cc Notes...

Re: Possible Acquisition - "We continue to evaluate synergistic business opportunities. These are intended to include products that would immediately add revenue and be accretive to earnings by providing additional products for sales reps to sell in their existing channels. We also look at products within existing sales force that could cross sell our SRT systems. We intend to be very judicious with respect to any acquisition, and we will vet them very, very carefully."
- "We currently have just about 22 salespeople throughout the country. We've always said that we want to get to 30 by the end of the year. But we're being cautious in hiring right now because we are aggressively trying to find a potential acquisition whereby we would be adding employees to our base. So the combination of both, we don't want to be over the 30-person sales force. We want to be a right on. So we want to be leery of any acquisitions that we might be able to bring on, some additional people and expertise in those areas as well. So those are the things that we're juggling, if you will, and contemplating as we try to close out the year and potentially do something special for the company and get to our point of 30."

Re: STR Vision - "Sure. The product, its feature is rich, and it's providing physicians with benefits and with features that they've never had before. The ultrasound, in particular, is extremely unique in the dermatology space. Having the ability to visually see the lesions, the depth and width of the lesion is really something special for these physicians to see, and we're seeing them being attracted by that feature when they're doing their treatment planning and also being able to provide the patient with the best treatment possible."

- "What we're finding is that in key pockets of the country, mainly the major centers, like Chicago, New York, Dallas, Texas, Miami, all of these major cities, they have a lot of keloid population there because of the minorities that exist in those areas. We know that this addresses the need mostly of African-Americans, Asians and Latinos, and there -- that lies where the heavy population is. So when we bring this up to a lot of the physicians that already have our equipment in those areas, this is a business or a part of the business that they're lacking that they don't exercise. And so when we help them identify the markets that they're in and how valuable this kind of a service would be, they provide some slight advertising, if you will. And then we also help them with patients that are contacting us, begging for help. And if you read some of these inquiries, you'll see how desperate these patients are for assistance in getting rid of their keloids. We're able to direct them to our doctors who are willing to train and who are willing to proceed with these procedures. And so the business starts building and one it leads -- one thing leads to another. Word by word, patient to patient, they start identifying with the physicians in their areas. And then of course, they make it -- make their way to those places. And then the success rates that we're seeing is really what's driving the interest of the physicians. All of these papers that are being published along with the abstracts that are being accepted are proof positive that we have between 90% and 100% cure rates for treating these keloids, where, in the past, nothing was better than 50%. So the confidence of the physicians are gaining as they do each procedure. The word gets out to other doctors who are gaining the confidence. And then with the marketing that they had with a little bit of our help in those communities, they're starting to see a lot of patient inquiries and, therefore, starting to treat a lot of patience.
Now, let's move to China. China has the largest keloid population in the world. And just coming back from there last week, it's incredible to see the cases that they have that start with such young patients, adolescents, including infants. Now we're not advocating to be treating the infants. But from adolescents on up, any kind of an injury, all of these scars that exist. So it's not just the keloids, but their hypertrophic scarring that also can be impacted with our system, of which we have FDA clearance with as well. ALL OF THESE FACTORS ARE DEVELOPING INTO A MARKET THAT COULD BE BIGGER THAN SKIN CANCER ITSELF. So we're very, very excited for this opportunity. And now that we've opened up Mexico as well, because of the skin color in Mexico, there's huge opportunities for keloids there as well as the skin cancer itself. So we're starting to see this snowball in all parts of the areas that we have our equipment, and the doctors are willing to move with this procedure."

RE: SRT-100 (and Vision) clearance in China - "We have the CFDA clearance now for both skin cancer and keloids with SRT-100 product. The ramp there is going to be very much like the hospital market here in the U.S. They have to get the budget and they have to get the budget approved, and then they have to be able to install the equipment and gain the money from the government in order to buy this. So I would think that that's going to be a process much like we have in the U.S., and I think that there's going to be some early adopters. And hopefully, we'll be able to make things happen there sooner rather than later. But I know sooner or later, IT'S GOING TO HIT A HOCKEY STICK THERE, where the prevention of keloids is so, so important and so much undermined there, including the government. So this is the big opportunity that we have. So the kickoff was exceptional. We had major tail wells and hospitals represented. And we think that that's going to be a ride drive for us in 2018. Regarding the Vision products I'm talking about, the Vision has features again that gives them identification of the keloids as well as the skin cancer. It's something that they don't have right now. And the visualization of that lesion is going to be something that really helps them with the treatment. So they're very aggressive in the treatments. They've been trying things that have not worked in the past. They recognize that it's not -- that it doesn't work. And they've got quite a few units already installed in the country that have been used for keloids so they know that it works and they understand what SRT is all about. So we're expecting the Vision product to get its clearance. I'm hoping by the mid part of 2018. And the sooner the better because I'm also hoping that this is not going to hold up purchases of the SRT-100 if they're waiting for that Vision. And a lot of them could be waiting for the Vision, especially -- and when I say larger hospitals, it's ridiculous. They have 33,000 hospitals and most of them, the majority of them, are over 2,000 beds. So they're all (inaudible) hospitals. So it's very, very important for us to get the Vision approved as quickly as possible.
- "It really is unbelievable. We've had conversations. We spent 10 days there, going from Shanghai to Beijing and meeting with some exceptional people and doctors and hospitals that already have access to the SRT-100. I know for a fact that the people that have SRT-100, we hosted a meeting of 4 of them, 4 different hospitals, and they want to upgrade to the Vision."

Re: Mexico - "We signed on a distributor that we've been working with for the last several months, Cyber Robotics of Mexico City. And their company that also distributes other products in this domain, they were also significant in working with us to gain the regulatory approvals in Mexico. So they've been a partner of ours, if you will, getting to this point and reaching our objective in Mexico for the past several months. So we're excited to have the opportunity to work with them. The market itself is very much like the U.S. market. We know what the population of Mexico is, but the percentages are pretty much the same as we have in the U.S. with skin cancer and keloids. So -- and the unique thing about Mexico is that the market and the regulatory portion of that allows for radiation oncologist, plastic surgeons and dermatologist to use this product in their offices or in their hospitals. So it's a wide-open market for us, and now we have to create the awareness. Walking into a market, we've never walked into a market and received 100 orders. You have to build to those orders. You have to start with education and the training. And we'll start attending a whole lot more meetings and regional meetings in Mexico to make that awareness along with Cyber -- our company. They're Cyber Robotics. So they're going to help us with that. And I expect that we'll see some very good revenues in the second half of the next year, and that's not to mention that we won't get some revenues before that. And hopefully, before the end of the year. Who knows?"

RE: Intra-operative radiotherapy (IORT) for the treatment of breast and other cancers - "What I can tell you is that things are moving along as scheduled. So at current, we are building a system that is just about completed so that we can start its initial testing. And once we're comfortable with the product being able to pass any and all tests that are going to be required by the FDA, that's when we'll start the paperwork for the submission. So part of the reason why we've had such expense in R&D is, this was a product that was scheduled to come out maybe at the end of 2018. And if we can get it approved before the middle of next year, that just gives us significant runway to get some sales in-house because you have to keep in mind that this is a product that's going to be $800,000 to $900,000. So it's going to have significant revenue impact on the company, but it's going to have even more significant impact in the treatment of the patients. And that's what we're really excited about. This is a game changer and a lifesaver for people that have breast cancer. And it's also going to apply to certain head and neck cancers, colorectal, vaginal cancers. These things are what they call orphan cancers, and this is something that is going to be beneficial in those areas as well."
https://finance.yahoo.com/news/edited-transcript-srts-earnings-conference-054051667.html