Good day, and welcome to the Sientra, Inc. First Quarter 2022 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. To withdraw from the question queue, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Oliver Bennett. Please go ahead. Thanks, operator. Good afternoon, and welcome to the Sientra First Quarter 2022 Earnings Conference Call. I would like to remind everyone that in our remarks today, we will include statements that are considered forward-looking statements within the meaning of United States securities laws. In addition, management may make additional forward-looking statements in response to your questions. Forward-looking statements are based on management's current assumptions and expectations of future events and trends, which may affect the company's business, strategy, operations, or financial performance. Actual results may differ materially from those expressed in or implied by the forward-looking statements. The company undertakes no obligation to update or review any estimate, projection, or forward-looking statement. A detailed discussion of the risks and uncertainties that the company faces is contained in its previously filed annual report on Form 10-K and in its quarterly report on Form 10-Q for the first quarter that ended March 31, 2022, to be filed with the SEC and available on the company's website and at sec.gov. I would also like to note that Sientra uses its investor relations website to publish important information about the company, including information that may be deemed material to investors. Financial and other information about Sientra is routinely posted and is accessible on the company's investor relations website at www.sientra.com. Today, on our call, we have Ron Menezes, Sientra's President and Chief Executive Officer, and Andy Schmidt, Sientra's Chief Financial Officer. I will now turn the call over to Ron. Ron? Thanks, Oliver, and hello, everyone. Our 7th consecutive quarter of growth was fueled by a record-high reconstruction performance. This result was a validation of our strategy to focus on the recon market. This quarter has set the foundation for 2022 with the reemergence of this highly valuable market, which will support our long-term growth. We're now seeing hospitals go back to pre-pandemic volumes. We'll continue to add accounts and grow market share in this important segment. We had record Q1 revenue of $21.4 million, a 17% increase over same quarter last year. We're also thrilled with the over 50% year-over-year increase in the reconstruction channel. In the augmentation or cosmetic market, we hit an all-time high market share of 13%. The company also had 60% gross margins as a result of increased recon sales and improved operational efficiencies. As we look into the rest of 2022 and beyond, we're focusing on three key areas. First, accelerate market share growth within reconstruction and augmentation. Second, continue to invest in commercial and R&D to support current and future growth. Lastly, to transform Sientra into innovative aesthetics company offering an enhanced portfolio for plastic surgeons. Our existing accounts continue to perform extremely well and drove more than 90% of our revenue in Q1 2022. New accounts also served as a leading indicator to a long-term growth profile, and we had over 200 new accounts in the first quarter of 2022. As a reminder, our tissue expanders are now in every major GPO in the country. When we bring a new recon account, it typically takes four-six months before we see significant sales volumes. We expect those new accounts to be accretive to Sientra's top-line growth this year and beyond. This continuous growth in accounts reinforces the fact that surgeons are switching to Sientra, driven by our value proposition, the safety profile of our products, which is backed by our 10-year clinical data, which is the best-in-class warranty, and being the partner of choice for plastic surgeons. The benefits of our portfolio have led to the acceleration on both recon and augmentation share gains, which offers unique and innovative technologies in tissue expanders and breast implants. Now turning to the augmentation market. The pandemic caused quite a boom in the plastic surgery market, and now we're seeing the augmentation market return to normal seasonality. Last year, we purposely set ourselves and our surgeons up by resetting our commercial strategy, and it's working. We'll continue to grow our volume, and our share of the market hit an all-time high of 13% this quarter compared to the same quarter last year, where we were about 8.5%. We've also doubled our consumer brand awareness over the past two years, growing at the highest rate in the category and putting us in the number two position amongst all brands. We're strategically investing to educate consumers about our safety profile, which is driving brand requests to plastic surgeons for Sientra implants. Additionally, we're providing more value to our surgeon partners by training them not only about our product advantages and techniques, but on practice management and growing their business in the highest revenue-producing segment in plastic surgery, breast augmentation. We're also seeing growing interest in fat grafting in the plastic surgery market, which validates our decision to acquire the novel fat grafting technology at the end of last year. Just a couple weeks ago at The Aesthetic Meeting in San Diego, the growing use of fat grafting in plastic surgery was a topic highly discussed and highlighted in many of the sessions. The benefits of fat grafting in both aesthetic and recon breast surgery has also been a topic of recent publications. We're confident our fat grafting technology will offer patients and surgeons unique benefits to obtain safe, natural, predictable, and reliable outcomes. We're very excited about this year as we build the foundation for the upcoming years. With that, I'll turn the call over to Andy. Thanks, Ron. Considering our Q1 2022 financial results, we recorded record Q1 plastic surgery results, which brings our running total to seven consecutive quarters of record revenue performance. Sientra posted revenues of $21.4 million as compared to $18.3 million in Q1 2021, an increase of 17%. Gross margin for Q1 2022 was 60%, which is a very strong performance as compared to 55.4% for the same period last year and 54.9% for the total year 2021. The key driver for gross margins is product and channel mix. Our Q1 2022 results saw strong performance from a reconstruction space, which we expect to continue to perform strongly in 2022, as supported by hospital wins in 2021 and new hospital wins in 2022. Consistent through 2021 and into 2022, we experienced price stability across our entire product line and improved product cost performance. We have moved past our transition expenses in Q1 2022 related to our distribution center move and expect to see the results of the improved cost dynamics throughout the year. Switching to operating expense. Total GAAP operating expense for Q1 2022 was $28.9 million, which compares to $21.9 million in Q1 2021. That said, our OpEx compares to the Q4 2021 period of $26.1 million. The increase being related to both non-recurring G&A items and as expected, increased expenses associated with an increased sales force to optimize 2022 customer acquisition opportunities. Total GAAP loss from continuing operations for Q1 2022 was $18 million, as compared to a $56.6 million loss for the previous year period. Q1 2021 included a non-cash charge of $42.7 million associated with the change in value of our previously defined derivative instrument. During 2021, we corrected for the derivative instrument accounting. Considering the Q1 2021 results without the derivative accounting, a comparative is a loss from continuing operations in Q1 2022 of $18 million as compared to $13.9 million, attributed primarily to the investment in sales and marketing in the 2022 period. Adjusted EBITDA for Q1 2022 was a $11.8 million dollar loss, as compared to a $7.3 million dollar loss for Q1 2021. Again, attributed to both our investment in our sales initiatives and non-recurring G&A charges in the current period. Switching to key balance sheet items. We ended the March 31, 2022 period with a cash balance of $38.9 million. This compares to a balance of $51.8 million on December 31, 2021. Year to date, cash used in operations was $17.9 million. However, $6.5 million of that amount was attributed to an increase in accounts receivable due to increasing sales and our transition in ERP systems in Q3 of 2021, which caused a delay in delivery of customer statements. We expect to recapture much of that increase in accounts receivable in 2022. We also increased inventories by approximately $1.3 million to support significant recon hospital wins which require consignment inventory. This is an as expected increase and compares favorably to the $13.8 million increase in inventory in 2021 to address increase in sales and support our business recovery from the 2020 COVID shutdowns. Total debt on March 31, 2022 was approximately $84 million, and total outstanding shares were approximately 62 million at period end. Turning to guidance for 2022. Reiterating our past communication, we expect plastic surgery revenue in the range of $93 million-$97 million, reflecting growth of 15%-20% compared to sales of $80.7 million in 2021. In regard to operating expense guidance, we are guiding 2022 GAAP operating expense to be $105 million-$109 million, representing an increase of 15%-20% compared to GAAP operating expense of $90.7 million in 2021. Non-GAAP 2022 operating expense is expected to be $90 million-$94 million, representing an increase of 18%-23% compared to Non-GAAP operating expense of $76.3 million in 2021. At this point, I will turn the call back to Ron Menezes. Thanks, Andy. With strong momentum behind us, we have many exciting catalysts on the horizon. In 2022, we expect to continue to expand our market share and number of accounts in both the recon and augmentation. We'll also focus on driving towards profitability in 2023 by further growing our top line by investing in areas that will drive future growth. We'll plan to fuel our future by transforming Sientra into a full aesthetics company, leveraging the full potential of our existing portfolio and the new fat grafting platform. Looking ahead, I'm very confident that we'll be on track to double our revenue within the next three years. With that, I'll open up for Q&A. We will now begin the question and answer session. To ask a question, you may press star then one on your touch-tone phone. If you are using a speaker phone, please pick up your handset before pressing the keys. To withdraw from the question queue, please press star then two. The first question is from Margaret Kaczor of William Blair. Please go ahead. Hey, good afternoon, guys. Thanks for taking the question. Maybe I just wanted to start out a bit with, you know, what's included in your guidance, if you can give us a sense of recon versus aug, and whether that's shifted at all given the momentum that you are seeing in the recon business, or even kind of underlying market trends in aug. Hi, Margaret. Welcome back. Thank you. Fun to be back. Margaret, our model was a 55-45. You know, that's what we planned for the year. This quarter, it came in closer, almost to 50/50 between the two of them, but we did model 55 aug and 45 recon for the rest of the year. Sure. Just adding what Ron said, you know, we're taking a look at 2022 to understand the return to seasonality, and we saw that in our Q1 in terms of aug and Q2 as we're launching through. We're seeing strong performance from both sectors. It'll be a bit of a wrestling match between the two. Recon is very strong. You see it in their gross margins. It's very exciting to see that space take off. Aug, we expect to perform equally as well. Okay. If I kind of, you know, keep going down that track, right? Can you give us a good sense of underlying market growth within reconstruction and then similar, you know, within aug to the best of your abilities? I know it's tough in the marketplace. Just kind of the pace of market share gains as we go throughout this year. You know, 500 basis points is spectacular. Can you keep going at that level? What might kinda stop you or maybe even have you accelerate from there? Thanks. Recon, Margaret, we don't have the data. IQVIA is gonna release that data next week, and I'll have that in one of the upcoming investor meetings. We'll have a share data, which I'm very, very optimistic with our share at that time. That includes always the market for first quarter. For augmentation, as I've been saying the last six months, we did expect and we saw seasonality first quarter back to 2019 levels. As you've noticed, we don't really rely on the market growth to advance our performance. We saw our share growth dramatically increase to 13% from 11% at the end of the year. Yeah, it's nice to have a market behind us. We're not waiting for the market, but you've seen our market share the last two years double. That's where we're focusing on what we do from our side. Okay, great. Thank you, guys. The next question is from Alex Nowak of Craig-Hallum. Please go ahead. Good afternoon, guys. This is Chase on for Alex. Thanks for the questions. I guess starting, you know, you said you saw the seasonality kind of return to 2019 levels. Like, going forward with likely decreased discretionary budgets, you know, maybe a recession on the horizon, how do you see demand holding up for you? I guess, what have you seen historically that kind of guides this opinion? Yeah, Chase, let's look at aug first and we'll separate aug and reconstruction. Aug, like I said, is back to seasonality, which means that Q1 and Q3 are the lowest quarters. Q2 and Q4 are always the highest quarters. We expect Q2 to come back and back to a strong quarter as individuals get ready for the summer. You know, and then expect the Q3 to go back down. Doctors are very, very busy still. I was in San Diego just two weeks ago at The Aesthetic Meeting, and they're telling me they're two-three months booked ahead. I don't know if they are planning a recession yet, but they are being very busy. Reconstruction, as we stated on the opening remarks, if the market is back, hospitals are busy, individuals who have delayed their reconstruction are going in and getting taken care of. They're very booked as well in that regard for reconstruction. I see a very strong recon market throughout this year, and I see aug right back to seasonality. That's helpful. Thanks. I guess just concerning your sales force, you know, what was the sales team reception to being more recon-focused? You know, any concern amongst the aug reps and, you know, what was the excitement level coming away from the sales meeting at the conference? Yeah, Chase, this is a strategy that we implemented in beginning of 2021 to really pivot this company and focus on reconstruction. We've been doing that since beginning of last year, adding new accounts, training our representatives. The great thing is, as we add new reps, and we did add 11 new representatives at the beginning of 2022, all of them have reconstruction background. Some of them, actually majority of them, have come from med device companies with extensive OR experience. It is part of their job. The individual that calls in the hospital also calls in the office for the augmentation side. We did expand as well, our reconstruction managers. We have seven. Before we had four reconstruction managers. We're very excited about the support we have right now. Our marketing team as well added more resources and more programs to drive that educational component to our hospital surgeons. Last year at the Sientra Summit is a program that we do to help our surgeons that are focused on reconstruction learn more, learn from each other. We had about 35 surgeons. We expect over 100 surgeons attend these programs this year, and it's a weekend program. They take time from their own time to attend this program. Reconstruction is part of us. Reconstruction is what Sientra stands for. We are very focused on augmentation as well, and we're very excited about performance, not just in this quarter, augmentation, but for the past, six quarters in augmentation. No, that's good to hear. Thanks. Just lastly from me, you know, Andy, can you speak to shore up the balance sheet at all? You know, you laid out a path to profitability, but will you need to raise additional capital to bridge to there? I guess, what are you kind of thinking about from the balance sheet perspective? Sure. You know, when we look at the past, our legacy debt facilities and capital strategies, they've been effective over the last several years. Keep in mind, they were put in place in 2018, so they're designed basically to take the company from 2018 to essentially 2023 to 2025. When we look at those current strategies, we have ample capital for the year 2022, but we're looking at different ways, different strategies to increase access to capital to provide a view of 2025 to 2027. It's basically time for a refresh of that, what was in place in 2018, and we have a lot of options. We're working through that in real time right now, and we will report back obviously to you all and to the field once we come to a landing spot. Got it. Thanks for the questions, guys. The next question is from Jon Block of Stifel. Please go ahead. Thanks, guys. Good afternoon. Hope all is well. Andy, maybe just a couple on the P&L to begin with. The 60% GM was really solid and a nice step function above where you had been. I know you say a lot of it's mix, but maybe just talk to us. I mean, do you think we're now working off this level? You sound like you, for a lot of reasons, expect recon to remain strong. That's the higher gross margin component. So, you know, do we think about a six handle for GMs throughout 2022? On the Non-GAAP OpEx, I think I got the numbers right. I think you're calling for $90-$94 million in the PR, in the press release, but you did 25, just over 25 in 1Q, and you're still being quite active on the R&D front. You know, how do we step down off that run rate in terms of where we were in 1Q? Then I've just got a quick follow-up. Sure. Let's start with growth, gross margins. 60% is part product mix. A big part of this is the work we've done in our distribution center. As we said, you know, during the launch of that big move in third quarter of 2021 that we had work to do to find the efficiencies that we're looking for. Past communication was we needed Q1 and Q2 of 2022 to complete that work. We're ahead of schedule. We completed that work here in early 2022. We're seeing the results in Q1. Those results will stay with us and build going forward. That 60%, that current product mix is solid. It can go up from there based on, again, recon performance and additional efficiencies. It won't drop much from there if we have an extremely heavy aug quarter. That additional pickup of four-five points is with us going forward. Again, that was completing the work that we started in 2021. When we look at 2022 in terms of OpEx expense, we have a similar dynamic. We still have work to complete in terms of our ERP change and other really significant investments we made in infrastructure in 2021. You're seeing some of that effect in Q1 2022 OpEx expense. Approximately $2.5 million of what you saw in OpEx expense in Q1 is non-recurring. When I look at guidance, specifically, as you said, if you annualize our Q1, it doesn't fit our guidance. There's a reason for that. We'd expect Q2 to also have some non-recurring costs, but of the $14 million-$18 million in Non-GAAP increase in OpEx expense, approximately $8.5 million-$9 million of that amount is non-recurring. That's where we start looking at the second half of 2022 in terms of basically, measuring out our OpEx expense or basically, making that look much more reasonable. That's basically gonna be the foundation for 2023 when we talk in terms of very little increase in OpEx expense in 2023, and our long-term modeling has much to do with our early 2022, taking care of some business, taking care of some of the restructuring work that we did in 2021. That will be behind us, and we'll see it normalize. That's the right word. By the way, we now include a Non-GAAP to GAAP operating expense reconciliation in our press releases. We'll do so every quarter, so the Street can understand how we basically get to Non-GAAP operating expense. Got it. Very, very helpful. Then, you know, Ron, for you, maybe just more higher level or strategic. I mean, I guess, if you want, is there anything to talk about in terms of AlloX2 Pro and any dialogue with the FDA? To zoom out, you know, you're clearly got a lot of traction in recon. I think there's been a lot of airtime given to a future competitor, but if and when they get there, it would be specific to Aug. If you just give us your thoughts on, you know, your recon portfolio versus others, it should get stronger with Pro. Do you think anyone's really there even chasing you in that part of the market? Thanks, guys. Thanks, John. We are focused on becoming the leader in reconstruction. You mentioned one of the products, PRO. We're in discussions with the FDA, and we submitted that 510(k) in December. We expect that to continue to move forward as we talk about the project. The other part too is our fat grafting technology, where the majority of surgeons use some kind of fat grafting reconstruction. We're gonna have our representative walking in with the only dual port tissue expander in the marketplace that reduces reoperation, reduces seroma, it reduces infections, and really makes it a critical advantage for us. We have breast implants that has advantages we've discussed in the past, and obviously you have fat grafting. This is all gonna be happening within the next 12 months as we launch fat grafting. We have this product that we discussed, and the pipeline is strong. We're looking at different opportunities as well, focused on reconstruction. I'll also be very clear, augmentations are a critical segment for us. It's done very, very well for us in the past. We've gained market share quite a bit this past 3 months. We see augmentation as well as a path for sustaining this company. The critical part is because we have such an advantage into reconstruction with the clinical data that we have, and I'll share an example, we won this well-known military base contract. We're so proud of that, and usually, as you heard in the past, it takes four-six months to get a contract to really start seeing revenues. It just takes a while. Because the surgeons in that base were so impressed by our clinical data, by AlloX2, they actually quickly started using AlloX2, and quickly started using our breast implants. They felt that for the patient, it made more sense to quickly go to AlloX2 versus worry about using the inventory from the previous manufacturer. That's the kind of data that makes it sustainable, a long-term growth and long-term focus on being the number one company in the reconstruction area. Perfect. Thanks, Ron Menezes. The next question is from Chris Cooley of Stephens. Please go ahead. Good afternoon, and thanks for taking the questions. Just two for me, if I may. Maybe one. I know we just had The Aesthetic Meeting, but just when we think about the pipeline, as John alluded to, just kind of curious if you could give us some color there about the contribution in the quarter from the new six-tab version of Dermaspan and, more broadly, expanders as a whole. And similarly, if in Canada, we're still expecting approval here in the second quarter, as well. Just wanted to touch base on those two fronts, and then had a quick follow-up. Hey, Chris. We just launched the Dermaspan six-tab, and we saw a very high demand in the last week in March. We basically saw, you know, did a really nice job selling most of them out, and they obviously are taking care of the needs and demand in this quarter as well. We also continue to see increased demand and interest for AlloX2. We have several well-known networks, hospital networks in U.S. that are continuing to talk to us about the clinical data and finding ways to add AlloX2 and Dermaspan six-tab. Those are the kind of things that we see immediate impact that will continue to pay for the future as well. Obviously, all the work, efforts that we did last year, we're seeing now in the first quarter, the results of those accounts that we won in third or fourth quarter of 2021. We're excited about where we're going from a reconstruction standpoint. Appreciate that additional color. I just wanted to circle back as well, just as we kind of try and dial in the model going forward here a little bit tighter, you know, post the fourth quarter. Any update that you can provide just as it pertains to the nonsurgical side of the portfolio and specifically just thinking about scar management, and I'll hop back in queue. Thanks. Yeah, you're. I'm sure you're talking about BIOCORNEUM. BIOCORNEUM did extremely well last year. We expect similar performance this year, Chris. I don't know if we broke that down, BIOCORNEUM, last year we did not. Yeah. Well, what we provided was, you know, it started out in the mid-seven figures as basically a cash cow, and we see it as an eight-figure contributor going forward. Yeah. Thank you. The next question is from Kyle Bauser of Lake Street Capital Markets. Please go ahead. Great. Thanks for taking the question and, for all the updates. Maybe I'll switch to fat grafting. From our checks, it sounds like physicians and perhaps even consumers are quite price elastic in the fat grafting space. To drive adoption, you know, pretty key, at least according to a couple of KOLs that you can show better efficacy of fat retention. I'm just wondering, could you talk a little bit again about what the industry average is for fat retention from fat grafting with traditional methods and what do you think would be a reasonable threshold to achieve to drive meaningful adoption. I mean, does it just need to be statistically significant, or is there a clinically significant threshold that might make more sense? Just kind of curious how you're thinking about that. Yeah, Kyle, in most products in the marketplace, including the two that are marketed by two companies and the homemade products by surgeons, about 40%-50%. After 12 months, they will see, you know, it's about 40%-50% retention. That's been pretty much the threshold that they go by. The data on the system, the fat grafting system we acquired from Mass General is that 71% after 12 months. Now, that's where we're trying to duplicate that in extensive studies a little higher, you know, to see that and to make sure that is the case. We are very confident because they had beautiful data, which was approved by the FDA at 71%. We're gonna be doing the studies in more patients to see that fat retention. That's gonna be kind of the game changer. You're gonna be able to apply and use fat grafting for reconstruction that a patient can last majority of them over 12 months. You can also see that as well in different parts of the body, you know, as part of the whole body transformation, and buttocks and other parts of the body can potentially down the road as a filler as well. Most synthetic fillers out there, they usually are good for 12-15 months. Now we have fat grafting, which is a patient's own tissue that could be 70% for about 12 months. You're really gonna see very consistent fat grafting, very predictable fat grafting, and that's very different to what's in the marketplace right now. Appreciate that. Yeah. My follow-up, can you remind me what some of the top reps in the implant business are generating in sales per year and roughly how long it takes to ramp a new rep on average? I know it kind of varies. Thank you. Yeah. Last year, we were very proud. We got close to $1.6 million per rep. A year and a half ago, it was $1.2 million per rep. We think that $2 million per rep is where we're likely to be eventually. We have reps that have $3+ million dollar territories. We usually have to divide it because it becomes very difficult for that one representative cover. You heard me stating we added 11 new individuals. Some of them are going to areas you'll think it makes sense to add new representatives, South Florida, parts of California, et cetera. We feel that $2 million dollar per rep is a good target for representatives. As it go way above that, it makes it very difficult to manage. Your second question about how long does it take. In the past, Kyle, you would probably say 6-8 months that somebody walks in, start to meet the customers, establish their relationship with customers, start learning about hospitals. Because we're hiring mostly, if not all individuals that have extensive OR experience, they're coming in and make an impact right away. Within the two to three months, we've seen people make an impact in the territory. We're teaching them the cosmetic side, but they're already coming in well-known with the connection to hospitals. You know, we're taking those and bringing those individuals from well-known big med device companies, and they like the flexibility. They're excited about the opportunity to come on board to Sientra, and they like to join a company that's fast, nimble, and makes quick decisions. They're really excited about joining us, and they're seeing impact within the next 2-3 months after they joined the company. Oh, that's great. Appreciate that. Well, thanks for all the updates. I'll jump back in queue. The next question is from Anthony Vendetti of Maxim Group. Please go ahead. Thanks. Appreciate it. Thanks, Ron. Thanks, Andy. Just a follow-up on that, and then I just have two quick questions. The goal of $2 million per rep, you increased the average rep to $1.6 million, and that was up 33% from 18 months ago. The goal of $2 million per rep, is that 18 months from now? Is that two years from now? When do you think the average rep could do $2 million per year? Yeah. I can hear you making some math calculations there, Anthony, in the background. We're kinda targeting about 108+ this year. Obviously, you know, we're now at 56 reps, so you target at about 108, and then eventually to get to that, you know, you heard me saying we're gonna double our revenue the next three years. That means sometime, not in 2023, but sometime after that, we'll probably have to assess the deployment of our sales force. We're very confident on our current structure from both sales and marketing for the next 18-24 months. When we added those representatives, we're already thinking of fat grafting launch beginning next year. Keep in mind, it's gonna be the same rep that's already in that hospital, also their office for the cosmetic doctor, and to be talking about fat grafting in addition to the products we have. Okay. That's helpful. You added 200 new accounts this quarter. Is that the run rate, approximate run rate we should look at per quarter for the rest of 2022, give or take a little bit? Give or take a little bit. Remember, one of the things I announced the last quarter is that we're focused on expanding our market share in, on the current accounts. We don't want people to be so focused on the new accounts that they forget accounts. 90% of our revenue was driven by existing accounts, and adding accounts is important. By the way, Anthony, 80% of those accounts were added or hospital accounts. They are reconstruction accounts in this quarter. We have a different target. I'm not gonna share what the target is per quarter, but every rep, all of us have a certain number target we're supposed to add per quarter. I can say that 200 accounts is a really good number. Okay. Just last question on ORIGIN. Where are you at on that 200-patient, 10 clinical site study? Any update on that? We have all the sites we identified. We actually have about 15 patients already, you know, in the process of being enrolled. We already started the process. We're very confident in our ability to finish the study in time for the launch. Remember, the product is approved, has all the indications, a very broad indication by the FDA. We would like more ways to talk about the product based on the clinical data. Again, Mass General did a wonderful job with clinical data. We just wanna have more data to be able to share when they launch the product at the beginning of next year. Okay, great. Thank you so much. I'll hop in the queue. Again, if you have a question, please press star then one. The next question is from Kyle Rose of Canaccord Genuity. Please go ahead. Great, good afternoon, and thank you for taking the questions. This is Jabran on for Kyle. Maybe to follow up on that point, Ron Menezes. With over 300 accounts now added in the last two quarters, both coming in at around 80% recon, where does your total account base stand now? What's the rough split there between recon and aug today? Yeah, Kyle, we're close to 3,000 accounts, okay, right now. We're pretty excited about that. I would say it's still about, after that, it's 60+% aug. The rest are recon. Trust me- Understood. Recon are still pretty quiet a bit, yeah. Maybe just to follow up or check in. In terms of OUS expansion to China, Japan, Middle East, you know, are those distribution agreements in place? How are approvals tracking there? Are you still targeting China in the next two-plus years? Just maybe a refresher on other OUS initiatives. Let me start first in Canada because there was a question about Canada. I didn't answer that, is we're very excited because we had our first patient in Canada. We have a lot of Canadian surgeons are very excited about using our implant. We have several surgeons already bought our implant, so Canada is going extremely well. We're very excited about the future there. Middle East, we're still in negotiations there. In China, we are engaged and talking with the Chinese regulatory agency. I don't think we changed the timeline for sometime in the next 2 years. We're really on track for approval. We're working. We have a distributor already right now in China, and we're discussing with the Chinese FDA. Everything is progressing extremely well in China, and we'll probably think 2024-ish. It will be launched there in China. Great. Thanks again for taking the questions. There are no other questions at this time. This concludes our question and answer session and today's conference. Thank you for attending today's presentation. You may now disconnect.