Spine Pain's (SPIN) CEO William Donovan on Q4 2015 Results - Earnings Call Transcript

| About: Spine Injury (SPIN)

Spine Injury Solutions, Inc. (OTCQB:SPIN) Q4 2015 Earnings Conference Call March 28, 2016 4:20 PM ET

Executives

John Bergeron - Director and Chief Financial Officer

William F. Donovan - Chairman, President, and CEO

David Spencer - CTO and President, QVH

Matthew DeGaetano - Founder and CEO, Personal Injury Institute and Colossus Software Certified Instructor

Jeffrey Cronk - Director

Analysts

Unidentified Analyst -

Unidentified Analyst -

Unidentified Analyst -

Unidentified Analyst -

Unidentified Analyst -

Operator

Welcome ladies and gentlemen to the Year-End 2015 Spine Injury Solutions, Inc. Interactive Webinar Investor Conference Call. Today's panelists include Dr. William Donovan, Chairman and CEO; John Bergeron, CFO; David Spencer, Chief Technical Officer and President of QVH and our new strategic partner Dr. Matt DeGaetano, Founder and CEO Personal Injury Institutes and Colossus Software certified instructor and Jeffrey Cronk, our Director. Dr. Cronk has also come to join us here for the Q&A session. He may pipe in once in a while here.

Before I turn over the call to your panelist, I would like to take a moment to introduce new participants to your interactive console to the right of your screen. This is important for two reasons; be sure to select whether you are using your telephone or computer speakers to hear the call; and two, should you like to present a question to the panelist, you will do it through this console. At any time, you can hide the console by clicking the arrow to the right -- at the wrong screen up here, I am sorry, but anyway at that time you can hide the console by clicking the arrow to the right and retreat at the same way.

You do need to wait until the Q&A portion, which will follow the formal presentation to present your questions. At any time you desire, simply use the questions box on your console to type in your questions as you would in any Internet check console. All questions will be held in order received and presented to the panelist during the Q&A portion.

With this said, let me now turn over the conference call by introducing John Bergeron, Spine's Chief Financial Officer to give the mandatory company disclaimer.

John Bergeron

Thank you, Art. This presentation includes forward-looking statements as determined by the U.S. Securities and Exchange Commission, the SEC. All statements other than statements of historical facts included in this presentation that address activities, events, or developments that the company believes or anticipates will or may occur in the future are forward-looking statements.

Such forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Such factors include general, economic, and business conditions, the ability to acquire and develop specific projects, the ability to fund operations, healthcare service demands, changes in healthcare practices, government regulations, and other factors which the company has little or no control. The company does not intend and is not obligated to update publicly any forward-looking statements. The contents of this presentation should be considered in conjunction with the warnings and cautionary statements contained in the company’s recent filings with the SEC.

Alright back to you Art.

Operator

Actually who is going to take the next slide Mr. Donovan. Next slide.

William F. Donovan

I would like to welcome everyone to Q15 year-end. It has been a very busy and productive year. So we have a lot to discuss and we will try to move through this as quick as possible. The slide up shows the various things happening in healthcare. You know that medicine is under attack, reimbursement is down due to the Affordable Care Act, hospitals, doctors are all looking for new revenue centers.

So, as we talk about Spine Injury Solutions, we are a solution company for hospitals, doctors, patients. And under the hospital we will come back to some of this that we have developed a HALO Rx project and David will talk about that later that it will give you some ideas of things that we are exploring. Under physician practices and I know this very well because I am in active practice. Doctors like me who treat people who have been injured in auto accidents are looking for new revenue centers and it has become very clear if you are going to be in this arena, doctors have to understand Colossus software and they have to understand how can we provide visually based diagnosis and support.

On the call today we have Dr. Matt DeGaetano from Dallas who will be speaking about Colossus and why we have teamed up with Dr. Matt. The key to everything is really coming down to transparency. In other words we as providers we want to validate the treatment that we are providing and this could be doing specialized testing on range of motion to show instability from ligament tears that don’t show up in MRI. And we have Dr. Jeffrey Cronk who will talk about that to the point of where we want to use our video technology to reduce fraud. And this is an issue that covers all aspects, the defense side, the plaintiff side. What we want to be able to do is show exactly what has been done and we are developing programs for a story board so we can video record objectively what has been provided in early stage diagnostics and later stage diagnosis and treatment.

The use of the HALO, we feel that there is some significant opportunities here education, training, we have been approached by some cadaver labs that are very interested in this. And the video teleshare we have developed and David will speak about this. We were approached by a company that is in the video streaming business and they really want to get into doctor's offices so we have been approached to develop some beta test sites which we have done and David will talk about it. Next question. Next slide, sorry.

When we talk about major developments it has been a busy year. I am just going to hit on a few areas. We changed the name to Spine Injury Solutions. We are a solution company. We have opened a new affiliate in Tyler, Texas. We have signed an agreement with Dr. DeGaetano in Dallas and he is the CEO of the Personal Injury Institute. And he understands training with Colossus and so forth. And as you know Dr. Jeffrey Cronk came on our Board of Directors. So we are bringing in added talent who can help us move on to the next level.

In 2015 we got the patent for the QVH, we got all the testing that was approved both for U.S. and the CE Mark for the EU. And we have explored various leasing options that will be available for our customers. In the third vertical we have been approached about how can we video tape open surgeries from multiple views. And we did a test in the Midwest, it proved that David used some modification to QVH and he calls it QVH Rx, that would be used for open procedures, be it abdominal procedures, hip procedures, knee procedures. That it is the next step that makes sense for the visually based objective data. And as I mentioned we brought on Dr. Cronk. Next slide.

This arena that we are in both chronic pain and auto accidents, in chronic pain this means you have pain for three months or longer. It is larger than diabetic, cancer, and CV. It is a very large market and if you notice at the bottom this affects 126 million adults per year and we referenced Dr. Cronk, Jeff can you talk about injury as the primary event that initiates the disease of chronic pain.

Jeffrey Cronk

Absolutely, thank you doctor. Injury is the event, primary event that initiates the disease of chronic pain. We know that chronic pain numbers out there. We also know that in the market just like you are stating what has to occur is transparency, transparency of procedures has to be openly acknowledged. Nothing can be hidden anymore which is what transparency is. Objectivity has to be improved, that means we have to have objective markers or objective understanding of what these injuries cause. And then we have to have doctors that can produce or get better results with them. So we are all interested in that, very aligned with Quad Video HALO and visual based diagnostics are all about is improving all of those areas so that we can make a huge impact into this market.

There has never been a better time to be in this market. If you actually have solutions and you have solutions that work, solutions that assist the providers have you checked the QVC, have you checked the Quad Video HALO system and we know that any time somebody is videoed you are going to perform better, you are going to get better results, and it does provide full transparency. So, the market is lining up perfectly for what we deliver as a company and the fact that we can provide these solutions, there has never been a better time in this market and it is a very, very large market.

William F. Donovan

Excellent comments. As we look at this slide, we are talking about chronic pain. Today in the Pain Medicine News dated March 28, 2016 there is a report from the American Society of Anesthesiologist, in 2015 they just presented this, they took blood samples from patients after motor vehicle accidents and it revealed significant elevation in microRNA. This is something that we can test with blood and it found in this study the higher the level of microRNA, the greater chance this patient is going to go on to chronic pain. And chronic pain is a huge problem. As it says on this slide right here, it affects more than one in ten adults, American adults. And this new study that just came out means that we are on the front end, hopefully we will be able to be studying the blood of patients to try to determine how do we prevent people from getting into chronic pain. Next slide.

The mission for Spine Injury Solutions, you can look at it in three ways, we provide solutions, we provide transparency, and we educate doctors and providers who will help us to be able to provide the best treatment for these patients. Next slide.

We have been very pleased in March of this year, we signed the sales and marketing agreement with Dr. Matthew DeGaetano who is the CEO and Founder of Personal Injury Institute. Dr. Matt is a certified instructor in Colossus. And it is imperative that you understand Colossus as you are providing treatment and it is my pleasure to have Dr. Matt who is on this call to say some words about marketing and sales in dealing with HALO, Colossus, and so forth. Dr. Matt.

Matthew DeGaetano

Sure, well thank you and I appreciate the opportunity Dr. Donovan to be on the call. And after seeing this product, I work with hundreds of doctors across United States including Pain Management, Surgery, and this product by itself separates the arena. And with the proof that the injuries were actually treated is significant.

I am working with doctors managing thousands of cases, this product really is going to be a separator and reason why Colossus is so important in this particular space is that it is the number one bodily injury claims analysis system in the world. And what that means is that they use this software to control the claims process or when there is a case that settle in, the amount of money is filtered through the software controlling the adjustors and their ability to write checks. And every insurance company has the right, the option to choose to use it. To give an example, all state uses Colossus, it is used in the United States they pay approximately 30 million to 50 million a year to use it and it is probably saving them close to 3 billion a year.

By controlling those damages they are using it on cases where HALO doesn’t exist. And I believe with this system it is going to allow the adjustors to see a stronger case, it is going to give the defense attorney a clear identifying factor with the case where they are going to make a decision whether they want to move forward with this. And it excites me to know this because with working with doctors that are treating and bills being cut, I believe that this will kind of create a success strategy here.

Now from a marketing standpoint, I am very excited because I have a lot of resources, a lot of support in this particular area and if we can dig deeper on exactly where we are going to take this product, I know that we have the right team in position to assist us and expanding in different ways, plus the education component. So, with those factors being said, Dr. Donovan, I don’t know if there is anything else you want me to address.

William F. Donovan

We will get back to you Matt because I am sure there is going to be a lot of questions about how your work with us, how is Colossus involved. I know that Colossus is an expert system and it is basically an artificial intelligence program. So, I am sure that there is going to be some questions. I am going to turn it back over to our CFO, John Bergeron who will now talk about some of the numbers for 2015.

John Bergeron

Thank you, Dr. Donovan. The first slide we are looking at is just a snapshot at 12/31. Basically the thing I would like to emphasize to you is that we have a 2.5 to 1 positive working capital ratio. We have 11.1 million in gross ARR. We have got 46% inside ownership, we have got about 700 shareholders, and we have net operating losses through 2035, $9.4 million. Next slide please.

Here is the condensed P&L from 2015 versus 2014. As you can tell there was improvement. I mean it is still not where we want to be. We don’t like losses but it is an improvement. We had over -- we had a change of about $635,000 in our net income and the main reasons for that are three fold. One is that our collection percentage increased in 2015 and this allowed our estimate for revenue to be higher and went from 48% to 52% in 2015.

Revenue is trued up at the time of collection but since our historical collections for 2015 have been higher, like 52% from 48% we have a higher estimate of our income, which has led to a higher gross margin. The second thing we have is we had fewer SG&A expenses as we cut our marketing cost for the Quad Video HALO, had less people and lower operating costs. We had lower Director and Officer compensation, consulting costs, legal fees, travel cost, and marketing cost in 2015 from 2014.

Finally the interest costs were down as we paid the high interest rates loan of 10% and 12% in early 2015 from the line of credit at Wells Fargo. The line of credit at Wells Fargo has about 2.42% interest. Additionally in 2014 we had some non-cash charges relating to warrants and options on certain debt rearrangements.

Finally we would tell you that we went from our earnings per share, went from negative $0.09 in 2014 to a negative nickel in 2015. And finally I wanted to tell you that we had total non-cash charges in 2015 of 682,000 compared to 815,214. So if you took the 682 from the million you will see that these results are not as bad as they look on paper. Next slide please.

This is basically fourth quarter. It shows the revenue from 2015 to 2014, a remarkable difference in the revenue and this all leads back to the higher revenue percentages which drove the net loss from being 665,000 to 239,000. Next slide please. In this the next is the condensed balance sheet. The things that speaks for itself but we want to make sure again that you realize that we have a current ratio of 2.5 to 1. We have a shareholders book value of $0.18 per share. We have ample cash to continue to do our core business and our QVH development.

And I guess with that you can ask questions later on. With that I will hand it back to Dr. Donovan.

William F. Donovan

On this next slide we are talking about the number of cases. Since we have started, we have provided treatment to 4,516 patients and that resulted in procedures of 7,912. Next slide. This slide shows the collections on the cases and with newer processes that have been developed, the percent of collections has increased. Since the beginning there have been 165 cases out of the total number that were failures which is 3.7%. I feel that is an acceptable failure rate here over now last six years. Next slide.

Since inception, our average case has settled for $6023. We still have over 2,300 cases already prefunded. To-date we have collected $13.2 million and there was less than $3.5 million in funding from the beginning. So, we funded raised $3.5 million and to date we have been able to collect $13.2 million. And as I mentioned only 165 cases were failures and no collection. I believe this is convincing evidence that this business model works. Next slide.

We were approached in 2015 to see if we could modify QVH and switch it to a different type of problem to resolve for some surgeons. So, David modified the QVH, went to a major teaching institution and demonstrated yes, we can use the modified technology for various types of open procedures. Because remember we were only using this for stuff -- procedures dealing with the CArm and injections. I feel this is hope that QVH Rx has opened a whole new opportunity for us and we are in discussions with some hospitals to do modified QVH for open surgical procedures. Next slide.

When we look at the future shareholder value and that is what we are all interested in here, because we are all shareholders. We need to leverage the technology, the QVH. We need to bring in additional visually based testing procedures. We need to educate doctors on how systems work and to use and that is where Dr. Matt going to be very involved, that is going to provide additional future shareholder value. The CE Mark we feel was significant because we have been approached about the EU because they need it there just like we need it here for visually based testing, to rule out fraud, and so forth. Next slide.

As we look ahead, 2015 was to me a very busy and a good year. We need to build on this right now. So, our goals in 2016 is to attract additional affiliate doctors for the core business model. Dr. Matt and Dr. Jeff are going to be very involved with that. We are developing and David is going to talk about the video teleshare, we were approached to develop something by a third party company that was in video streaming. And we now and David will talk about it, we have set up some test sites. And we were redesigning the marketing and sales department and Dr. Matt is going to be very involved with that. I truly believe 2016 is going to be a very productive and beneficial year for all of us who are shareholders. Next slide.

I want to turn it over to David now to talk about some of the things that he has been developing and with Quad Video and spinoffs, David.

David Spencer

Good afternoon ladies and gentlemen, David Spencer here, Quad Video HALO. Next slide please. I want to catch you guys up on some developments, some milestones, things that we have achieved. In the last year, the big UL certification came across for compliance that we knew that we needed for OR market penetration and also the clinical level to isolate any patient safety issues. So that was the compliance testing you guys have all heard about, that went on for the last year. So, we are all up in good shape, we got the certification the first time, I mean the first part of the year. So when you parallel that with patent we feel we have a got a strong foothold with protection, safety, and security on our product in the OR and at the clinical level as well. Next slide please.

As well as with the compliment of the HALO card inside the clinical environment we have continued our push for the iPad application product development. We have reached the milestone with that. We are now at the final stages of approval for that to compliment that which in line as we have found out with other vertical markets with the QVH care, the video teleshare that Dr. Donovan has briefly discussed, this application, apps as we all know are the future. We use them daily. We rely on them for information, so our common approach with it was why not bring it into the markets for doctors and patients to leverage on it as well. So, with that being said, the iPad application will inherit all of the properties at a clinical level that you see with medical card but now will also allow remote viewing, collaboration, synergism, and things of that nature that -- things that can be used with the app. Next slide please.

So, with the app the Quad Video HALO at the medical card all of that in store, these are the four main areas that we are focusing now on and making a full sprint to get proposals out there and prospecting on potential clients that have got excellent feedback on it. This year has started out fantastic. We have had some very power players at the table with us and want to align with us and see our product go to fruition with them. And that being at the mass torrid level finding some hospitals to endorse us, the attorneys certainly want it, the recordings with the QVH HALO Rx which is a surgical product.

And then the HALO just to give everybody a quick overview, the HALO is the clinical product and it could be introduced in the OR if the CArm needs to be and the clamp need to be applied. But the product that is specific to operating rooms with all the different parameters, all the different medical devices that are out there, the product that we’ve developed for that for recording that mass for example would fall under that arena is the HALO Rx.

Thirdly what we have found is hospitals not only demand the recordings to be used for teaching in litigation but it's also a good collaboration tool. So we’ve opened the door with a video teleshare and we partner with one of the leading providers of HIPPA compliant backbone. So, what that means is that when we’re broadcasting information that maybe x-rays, live video, doing consulting we’ve got them with the eyes and ears on the ground making sure everybody is safe just as if you were at a store swiping your debit or credit card.

The other thing that we’ve also tied up with on a partnership is with box.com. We’re going to leverage them from a cloud storage standpoint that also as well offers that security that we all need at the end of the day to make sure that our patient information is kept safe. Box has done a fantastic job with that. We’ve deployed our teleshare which is called QVH care and that allows doctors to be able to remotely work with patients and without having occur travel time and also faster responses. With that being said with those three products we feel that these four markets that you’re seeing on your screen right now are where we need to be and what we’re focusing on and we’re making a full sprint with all these since the certification. So next slide please?

So, you’ve heard Bill touch on this and then I explained a little bit further. This as you’re seeing in this slide is QVH care and we have successfully deployed it in three locations out in Midland, Houston, and Tyler as well. And that allows the physician to see the patients before their consult and things of that nature reducing travel cost and then also quicker turnaround times. This sets the pace, this is where the market is going, everybody is used to FaceTime, Skyping things of that nature, and we’re seeing huge benefits for it in healthcare to get instant responses from your doctors. So this is a good product to watch.

And guess that’s it at this point. I’m going to go back to trying to dream up some new products and get these things sold. So I appreciate it, and I am going to pass it off to Bill.

William F. Donovan

Now we’re going to get to questions in about one minute after hearing conclusions. There was a lot of things happening in 2015. I think 2016 is going to be a year of opportunities. We know the problems in medicine, I mentioned them earlier, it’s under attack, revenues are down. And I think for us the shareholders, I think what we need to remember this business model worked. Even after shutting down Florida and South Texas, the questions that we need to ask are there new markets that offer similar growth revenue opportunities without the fundamental challenges in Florida and the answer is yes. Are we still able to collect moneys even if we are no longer working in the market, the answer is yes? And where I see the opportunities is working with Dr. Jeff and Dr. Matt into new areas with education of the doctors because this will create more affiliated doctors. So I am looking forward to 2016.

Lets open it to questions, I think there is a method you can send me a email or on the computer and we’ll proceed to try to answer all your questions. But I want to thank our shareholders. We’ve had ups and downs over the years but management and the people involved are working everyday because we have something that’s very special and it is needed. And we’re going to continue to work hard and make this a success.

Question-and-Answer Session

Operator

Okay, start asking a few questions if you would on the right hand side you see the question box. We’ve got a couple of questions starting to appear right now. Let’s see what I’ve got here.

Unidentified Analyst

This is one of the slides mentioned negotiating the opening of an office in Germany? How soon do you expect this to happen and what products would be of most interest in Germany?

William F. Donovan

Let me answer that, we were approached by a distributor in eastern Germany that would handle Germany, Switzerland, and Austria. They are very wired into teaching hospitals and for this type of situation they are very interested in a teaching – and the QVH is perfect for a teaching environment. We’re trying to work out how we handle any liability issues from the distributor standpoint and to ours. So this is ongoing but we were approached about how could we do something in a unique environment because there with a lot of the teaching hospitals and hopefully we’ll have something to report on that in 2016.

Unidentified Analyst

Okay, from Mike Andrews will there be a third party sale of the QVH in 2016?

William F. Donovan

Yes. I hope so. You can be a little more enthusiastic then that I would think.

David Spencer

No that’s pretty straight forward. I thought there was going to be several things we were going to announce by Q1 but they been delayed.

William F. Donovan

But he didn’t say expect the quarter you know he said the whole year by 2016?

David Spencer

Yes, I know and I feel that yes we will have, we are working on some interesting ways and this is going to blend in and Dr. Matt and I've talked about this at length. With the teaching we will start a certain type of involvement with QVH. We then discuss bringing them to a second level and then a third level. Do I expect we are going to have sales in 2016? Yes

Unidentified Analyst

A question for Dr. DeGaetano, can you explain in a minute or two just how Colossus Software works to evaluate cases?

Matthew DeGaetano

Yes, absolutely, great question and so the software is designed -- it’s a nationwide product. So software is being offered by let's say State Farm is using it and I use their name because they are. So it’s the most largest user in the United States. So what they do is they allow the adjuster to take information about a claim. So let's say there is an injured individual, let's say they have a disc injury, they go see Dr. Donovan. Dr. Donovan does an evaluation, treats the patient, the patient may have several different providers might be Orthopedists, Chiropractor Rehabilitative Services, MRIs and then there is a total of bills we’ll call it $30,000. So the Attorney that might be associated with that case will then work up the case and create a profile of that case. They’ll send that case over to Old State. Old State's adjuster is required to enter the information into the software. If the information entered into the software it's going to create a value based on the information that is submitted.

But with Quad Video HALO what it is going to do is it is going to change how the adjuster is going to see the case as well as what the next step would be. And from what we’ve seen is that most defense firms will not want to take this case to court and therefore their value increases based on what we’re seeing in our site. So it is a filtering system to basically control adjusters. They are not allowed to create an offer without the information being entered into the system first. Then they are allowed to call the attorney with an offer. But the system is designed to control the adjuster.

Unidentified Analyst

And a follow up question for doctor...

William F. Donovan

Can I add just one thing to what Dr. Matt said? Colossus is a trade name for a software program which is licensed for use by Continuum Company, Inc. Continuum is based here in Texas. It’s a subsidiary of computer Sciences Corporation. It’s a relational database and it is actually the world's largest commercial expert. One of the world's largest commercial expert systems. So you can go to Computer Sciences Corporation or Continuum to learn more how it originally was developed in Australia, then it was brought here. But what Matt gives seminars across the country on Colossus to hundreds and hundreds of doctors and we feel that there is opportunities for marketing and sales learning from how Matt has approached and introduced Colossus. What I can tell you as a practicing surgeon, Colossus is actually made me a better doctor because it makes you to be very specific and attention to detail. So Colossus actually helps provide better healthcare for these injured patients.

Unidentified Analyst

And then a follow up question for Dr. DeGaetano, as you seemed quite excited about the QVH, how would you envision interfacing the QVH with your existing program? And the second part of that question is, who do you think the primary driver would be a doctor or an attorney that you would think would be more apt to buy the product?

Matthew DeGaetano

Okay I’ll start with first question. As it pertains to this product, as I had identified it and I think I shared it with Dr. Donovan, I think this product in the personal injury arena is as valuable as the MRI is perceived in the personal injury arena. Except that its documenting the actual event and of the treatment that’s being rendered. And I also see an advancement of this where the treating rehab doctor, the chiropractor, the physical therapist there could be an add on product that HALO already kind of creates and that ties in with the documentation. So with documentations provided to the adjuster, the video and the documentation is answering all these factors that the adjuster now is going to enter into Colossus. So I see some add on. So I am very excited just based on what I have been able to see in it. It was no brainer the moment I saw it and then as I got to speak with Dr. Donovan it just make complete sense.

Now I see the end product being mostly the doctor but I see the education component tying into both, because the physician if it’s a pain management orthopedist, anesthesiologist I think they will understand but there still needs to be education for how it will lay out and then the attorneys need to understand what the value is and how it makes sense. Now because its video it should make -- it makes complete sense. And the attorneys that I've shared it with just recently at a seminar that I did in New Orleans, the attorneys were very excited and they said is it here yet? And it was in New Orleans and I am working on those guys as we speak. So I do see this branching off in different cities and we actually have some traction right now. But I’ll let Dr. Donovan kind of maybe explain that.

Unidentified Analyst

Okay, Harold Gabori [ph], well here is the question for you, why don’t you show TV ads across the states to get the doctors attention, well that’s a question whoever wants to take that one?

John Bergeron

I think that the best way to do this is to take what Dr. Matt has done and what Dr. Jeff has done. They do webinars and seminars to the doctors, the therapists who are involved in treating people in auto accidents. That’s our best way to get the people involved to understand what our technology does. And as Dr. Matt just mentioned, parallel with this the various types of meetings he puts on or CLEs, it is both sides of the fence. And on dealing with the attorneys, either defense or plaintiff really doesn’t matter you are going to rule out fraud. And fraud is a huge problem in healthcare. If somebody says they did such and such a procedure, well fine show us the video, if not then maybe the procedure wasn’t done. So I don’t think advertising on TV is what we need but we need a very focused laser approach and doing what Dr. Matt and what Dr. Jeff had been doing. This is why these two guys are such an addition to the company and we have been working to get them very involved. So this is our internal thinking.

Unidentified Analyst

And Lee [ph] has actually three questions. First one is well here we go again we know it is going to be at least one, does the company have any sales projections for HALO in 2016?

John Bergeron

No we are not going to give any projections. Some people in the past have said something's but no, it is let's see at June, July, August what's been done in Q2, and then maybe we can say there are certain things in the pipeline for the rest of the year. But no we’re not going to give any projections.

Unidentified Analyst

Two, how much of the dribbling monthly 20,000 shares of stock are left in total and I think that’s our friend up in Utah’s shares that dribble out every month?

John Bergeron

He releases 20,000 shares a month and I think it is down to 97,000 now, it could be lower. I think it is under a 100.

Unidentified Analyst

About the QVH care, what is the price tag of the suite?

John Bergeron

I don’t have let me have David. Hold on. QVH care they want to know what the price tag is. Well with the current deployment that we have, that we done the internal test with the price tag is going to be a contingent on where our HIPAA backbone provider what they are going to come back with some bandwidth. So we’ll be releasing that information probably here in the next month or two once we finalize all of that and get the deal going. But we’ll certainly be more than happy to answer that. Again this is one of these that we put together literally within the last three weeks of development software, hardware, everything creative put it in and deployed it. And have had expressed interest in it, so we are going to start building out those proposals now. So that answer can't be answered right now but I would certainly do it if I could. So I’ll be releasing that soon.

Unidentified Analyst

Okay from

John Bergeron

I just went and checked some paper work, there is 80,000 shares left on that 20,000.

Unidentified Analyst

That’s a long way down and a lot of years from what a 1.2 million?

John Bergeron

Yes

Unidentified Analyst

Wow let's celebrate. Okay another question from Lee, could you please explain more about the strategic marketing partnership with Personal Injury Institute, I think Dr. DeGaetano kind of told us a little while about I don’t know if you want to expand on it any more than that?

Matthew DeGaetano

I’ll be happy to. Yes, as it pertains to some ideas, I have a lot of support in terms of copyrighting and some strategy and have a target market. And I think Dr. Donovan is right on point. I think if we look at who the target market is going to be for this particular product I would say pain management, anesthesiology, orthopedics just to name three. And if we target those and we conduct some webinars where we create leverage in this particular marketplace that’s going to be strategic. If any of those providers are looking to use that product we can also setup a marketing platform for each of them so they will be able to grow and use this product very successfully. We have that setup with the institute where we can put marketers on the ground in any particular city which would be supportive of their purchase of this product. And then we would do the training necessary for those marketers to represent HALO to explain it so that they can gain traction faster. And so I think with the purchase price of the HALO and then if there was some marketing component built in with that it is going to make it a lot more attractive for a provider to use it and I know we have all that infrastructure set currently to be able to assist with that.

Unidentified Analyst

Okay, let's see here William Ryan, seems like the QVH Rx might have a significant utilization via telemedicine in rural hospitals as they network with major medical centers in the satellite capacity, do you foresee pursuing that section of the telemedicine capacity QVH during 2016?

William F. Donovan

That’s a great question, this is why we were approached by and David mentioned it, a video streaming company, it’s a big company. And they wanted to get in to test and stuff out for exactly what the question deals with. So we’ve installed this and we’re testing it to see how it would work out. But let me tell you, video teleshare systems, the population growth is created a need for this both domestic and international. So I think we’re going to have more to say about that this year and is there a need for it, yes. And do I think our partners that we’re dealing with would be a great partner, absolutely. But let's wait and see how it works out. But we would keep the advice on this absolutely.

Unidentified Analyst

Okay, Herb Hermann [ph], how hot and ready our future affiliates to get started I guess legacy affiliates?

William F. Donovan

Very hot. We’re dealing between three and five right now that want to get involved and we have some people today that normally be on this call, they are out of town, they are out doing deals right now. It is like everything in medicine, things take time, but we know that model works and we’re going to collaborate with both Dr. Matt and Dr. Jeff in doing and increase the number of affiliates. And Dr. Jeff because he is an expert in ligament injuries that don’t show up on MRI but other types of visually based systems where you are working with him to implement some of that into this which will help our affiliates which will get us more affiliates.

Unidentified Analyst

For Dr. Matt, I am sorry for Dr. Jeff, this is Don Jinks [ph]. It says Dr. Jeff we heard why Dr. Matt is excited about QVH what excites you the most?

Jeffrey Cronk

Actually that’s a very good question, what excited me the most from right from the get go is I am a results oriented guy. I am a guy that’s say look in this market its very clear in the market the results are currently not there. When you look at the chronic pain markers in society today, obviously our doctors are failing. And that’s the whole transparency era. The era of being completely transparent now because if you’re going to get results you have to be transparent. And when Dr. Donovan showed me the system it was immediately okay, great this is transparent. It videos exactly what the procedure is, it videos what's being produced. It produces better results which is what I am all about is better results in the market because anybody that can create better results in the market whether those results are surgically based, whether those results are alternatively based, therapeutically based through conservative care procedures all the way up the line to the most aggressive or invasive procedures anything that improves results is going to be very, very market friendly in this new market. Because this new market is searching heavily. I don’t care if you look at the U.S. insurance market or you look in the injury market I happen to be in the spine injury market and we’re talking about personal injury. You are talking about spinal injuries, those are the most significant injuries in the market today. We’re a company, spinal kinetics where we’re providing diagnostic solution, an actual biomarker to the condition called the ligament injury. And that ligament injury is the number one cause of pain and disability in the world today. When we saw and aligned with Dr. Donovan it was very easy to see that the actual technologies had identical purposes. And so that’s what was so exciting about it for me is these are solutions that the market openly needs, it is openly starting into actually address and acknowledge that it needs solutions to these problems. And so what really got me excited was the fact that here is another solution provider that can provide an absolutely needed solution in the market. And so that’s the thing that got me excited. And also the synergy of the markets right now and how these markets can open up which Dr. Donovan and I have discussed and Dr. DeGaetano is going to be hugely involved with just opening up and messaging to the market that these technologies are here.

Operator

Okay that sounded like a pretty good answer to the question. I’ve left with two more questions and then we’re going to wrap this thing up. From Harold Gaberi [ph] follow up here.

Unidentified Analyst

Marketing is the hardest part of making something successful. If you have different applications for your HALO one person can't do it all by himself, do you have any plans to get a sales force involved so that sales could someday explode?

William F. Donovan

Your comments are absolutely correct and in healthcare we are a new entity with a unique product. We had to make sure that we had all the approvals. I have David working on spinoff products. We have thought and we had previous hirers from traditional medical healthcare marketers. We’ve reassessed those and we feel that Dr. Jeff and Dr. Matt can be directing us into the right direction, where we would be building out a sales and marketing. Yes, but it is going to be -- the approach is going to be different than we’ve done in the past. The people we’ve hired before have failed and I think what Dr. Jeff was saying and Dr. Matt it’s a unique product. We’re developing additional products. I believe 2016 is going to bare some fruit on expanded marketing and sales.

Unidentified Analyst

Okay here is the last one; it’s a two part question. Any recurring revenue stream from the teleshare and how do we make -- there are two questions any recording revenue stream I guess in any of the businesses that we’re currently at? And the second part is how do we make money with the QVH care teleshare program?

William F. Donovan

First thing we’re trying to forget it will work I think it will.

Unidentified Analyst

Which one we are talking about?

William F. Donovan

Teleshare, that part of the question dealt with teleshare. I am sorry.

Unidentified Analyst

It just that any of our businesses that have a recurring revenue stream, any of our products was the first question and this is the second part has to do with Teleshare?

William F. Donovan

Okay I am sorry I misunderstood. Okay in the QVH if you are leasing it 2500 a month plus I believe 1500 for the DVD. If you purchase it outright you still have to pay for the DVDs. On teleshare I believe we’re going to be able to show that it will work and then how do we develop a monthly subscription. First, to join you would put up some money to join on a monthly subscription. This is what we’re working through right now. We want to see how the technology works and here is David, let David comment on ancillary income.

David Spencer

The QVH care or the telemedicine side again like I briefly touched on that will be I guess for me to go into further depth is that with the pricing model is going to be based off subscription no doubt because it involves the cloud storage and then also the streaming, and it has got monthly subscription just like you would have bandwidth at your home. The Quad Video HALO has three different price points on it. One program is per click on demand. There is the lease option and then there is a straight out option to buy the equipment. They all provide, all three of those options give you the DVDs that those are relevant for your needs if not we put in the cloud. There is a revenue source there and also if -- and then that also comes with complimentary support, additional comp support packages to put it on the level of technical support that you do need at your facility. So I hope I’ve answered that.

Operator

Well that’s it for our questions. Dr. Donovan would you like to make closing comment or anyone.

William F. Donovan

Just my closing comment is to our shareholders, we’re doing everything. This is why we been able to get to Dr. Jeff involved, Dr. Matt involved, why we’re developing these products. And I feel that’s why I think 2016 is going to be a year of opportunity. And I just want to thank everyone for taking time from your busy day to listen to what we’re doing. Terrific questions and we will be back with you in early April.

Operator

Thank you and we’re going to go off the air right now.

Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.

THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.

If you have any additional questions about our online transcripts, please contact us at: transcripts@seekingalpha.com. Thank you!