Question-and-Answer Session
Operator
(Operator instructions) Our first question comes from the line of Matt Dolan with Roth Capital. Please go ahead.
Matt Dolan – Roth Capital Partners
Hi guys, good morning.
Donald Earhart
Hi, Matt.
Matt Dolan – Roth Capital Partners
First question on the guidance given that growth continues to be challenging in this environment and your reduction in the assumptions for the second half of the year, are you – can you help us out relative to how you are formulating your guidance? Are you becoming more conservative than you were previously or how much are you now counting on new products and the impact of anti-infection, et cetera, on hitting those goals?
Donald Earhart
Well, Matt, the guidance we are giving is based on what we know today and what we believe our opportunities are for the second half of the year. If the economy gets much worse that could affect our ability to achieve that guidance. If we get a little help from the economy that could help us beat that guidance. So, all I can say at this time is that’s the guidance that we think is the best number to give at this time based on what we know today.
Matt Dolan – Roth Capital Partners
Okay. And secondly, a couple of questions on the charges, the litigation, and insurance side of things. How many – can you give us how many cases have been filed, when they were filed, just some more commentary there? And then with this insurance how much coverage do you have relative to the worst-case scenario in this outcome however likely.
Donald Earhart
Again, we don’t really talk about our legal plans or I should say strategy to fight these cases, but there are approximately 30 cases today. Most of them fall into the previous insurance period, which is where we bought the additional insurance. So we have today about $35 million in coverage, which we have identified for that period. Going forward into the new insurance period in which I don’t believe we have any cases at this time, we have about $50 million in insurance in place. So, we think we are well covered and can handle whatever outcome would be expected. But again, we will fight this vigorously because we do not believe that the ON-Q pump causes chondrolysis.
Matt Dolan – Roth Capital Partners
Okay. And then just to clarify on the profitability guidance, would you be guiding to profitability for the year maintaining that guidance excluding the litigation charges?
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