Financial Data and Key Metrics Changes - Revenues for Q2 2025 were $7.3 million, down from $9.2 million in Q2 2024, primarily due to fewer capital system sales [18] - Gross profit decreased to $2.9 million in Q2 2025 from $5.4 million in Q2 2024, with gross margin dropping to 39.7% from 58.7% [19] - Net loss for Q2 2025 was $1 million, or $0.06 per share, compared to net income of $1.6 million, or $0.10 per diluted share, in Q2 2024 [20] - Adjusted EBITDA for Q2 2025 was negative $1.8 million, down from positive $2.1 million in the prior year [20] Business Line Data and Key Metrics Changes - The company delivered 19 SRT systems in Q2 2025, with four sold to China, indicating growing international demand [9] - FDA treatment volume increased by 27% over Q1 2025, suggesting improved efficiency and patient awareness of SRT [9] Market Data and Key Metrics Changes - The proposed local coverage determination (LCD) by Medicare has temporarily stalled domestic sales momentum, impacting market activity [5][6] - The proposed physician fee schedule by Medicare could significantly increase reimbursement for SRT delivery, potentially transforming the U.S. commercial strategy [16] Company Strategy and Development Direction - The company is focused on increasing patient awareness for SRT, growing internationally, and advancing its product pipeline [14] - A new partnership with Radiation Oncology Systems (ROS) aims to enhance distribution in hospital-based oncology segments [10] - The company is preparing for commercial deployment of its next-generation TBI platform, with FDA feedback anticipated later this year [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for increased reimbursement rates and the positive impact on SRT adoption [23] - The company is actively lobbying against the proposed LCD, believing it will not be implemented due to their efforts and supporting evidence [30][36] - Management indicated that the pause in purchasing from a large customer is temporary and that interest in SRT remains strong [42][43] Other Important Information - The company ended the quarter with $22.2 million in cash and no debt, maintaining a strong balance sheet [23] - The MD SAP certification allows the company to access markets in Brazil, Canada, Japan, and Australia, enhancing its international growth prospects [15] Q&A Session Summary Question: Impact of proposed CMS reimbursement changes - Management clarified that the LCD and proposed physician fee schedule are separate, with the LCD focusing on ultrasound utilization [28][30] Question: Effects of LCD on FDA treatment volumes - Management noted a pause in market activity due to uncertainty from the LCD, but they believe ultrasound's role in SRT will be validated [34][35] Question: Status of large customer purchases - Management confirmed that the largest customer has paused purchases due to reimbursement uncertainties but remains committed to SRT [42][43] Question: Potential for increased sales in China - Management expressed optimism about continued orders from China and potential new orders from other international markets due to MD SAP [46][70] Question: Macro-level softness in capital equipment spending - Management indicated that the current pause is specific to SRT and not indicative of broader market trends, with expectations for growth in Q3 [72][73]

[Company Overview & Q2 2025 Highlights](index=1&type=section&id=Company%20Overview%20%26%20Q2%202025%20Highlights) Sensus Healthcare's Q2 2025 performance was impacted by reimbursement changes, yet the company expanded internationally and strengthened its market position [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Joe Sardano reported Q2 performance was impacted by a proposed LCD, but a potential Medicare Physician Fee Schedule change could align outpatient SRT payments with higher hospital rates from January 2026, alongside international expansion and a new ROS partnership - Domestic sales momentum was impacted by a proposed **Local Coverage Determination (LCD)** in mid-May to limit reimbursement for ultrasound when used with SRT-100 Vision™[3](index=3&type=chunk) - Medicare proposed a Physician Fee Schedule in July to align outpatient SRT payments with higher hospital rates, expected to be effective **January 1, 2026**, if finalized[3](index=3&type=chunk) - The company shipped **19 SRT systems** (including four to China), signed **five additional FDA contracts**, activated **four sites**, and FDA treatment volume increased **27% sequentially**[3](index=3&type=chunk)[4](index=4&type=chunk) - Received **MDSAP certification** for the full SRT product portfolio, supporting global regulatory access and commercial expansion[5](index=5&type=chunk) - Engaged **Radiology Oncology Systems (ROS)** as a primary distribution partner to hospital-based radiation oncology departments and freestanding oncology centers nationwide[5](index=5&type=chunk)[6](index=6&type=chunk) [Second Quarter 2025 Highlights](index=1&type=section&id=Highlights%20of%20the%20second%20quarter%20of%202025) Sensus Healthcare reported Q2 2025 revenues of **$7.3 million**, a net loss of **$1.0 million**, 19 SRT systems shipped, and ended the quarter with **$22.2 million** in cash and no debt Q2 2025 Key Financial Highlights | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :----- | :------ | :------ | :----------- | | Revenues | $7.3 million | $9.2 million | -20.7% | | Net Loss (Income) | $(1.0) million | $1.6 million | N/A (loss vs income) | | EPS | $(0.06) | $0.10 | N/A (loss vs income) | - Shipped **19 superficial radiotherapy (SRT) systems**, including **10 to a large customer** and **four internationally**[4](index=4&type=chunk)[5](index=5&type=chunk) - Recorded a **27% sequential-quarter increase** in FDA treatment volume[4](index=4&type=chunk)[5](index=5&type=chunk) - Exited the quarter with **$22.2 million in cash** and **no debt**[4](index=4&type=chunk) [Financial Results Overview](index=2&type=section&id=Second%20Quarter%20Financial%20Results) This section details Sensus Healthcare's financial performance for Q2 and H1 2025, showing revenue declines, increased operating expenses, and a shift to net losses [Second Quarter 2025 Financial Performance](index=2&type=section&id=Second%20Quarter%20Financial%20Results) Q2 2025 revenues decreased to **$7.3 million** due to lower unit sales, resulting in a significant gross profit decline to **$2.9 million** (39.7% margin), increased operating expenses, a net loss of **$1.0 million**, and negative Adjusted EBITDA of **$(1.8) million** Q2 2025 Financial Performance (in thousands) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :---------------------- | :------ | :------ | :--------- | | Revenues | $7,315 | $9,239 | -20.7% | | Cost of Sales | $4,412 | $3,816 | +15.6% | | Gross Profit | $2,903 | $5,423 | -46.5% | | Gross Margin | 39.7% | 58.7% | -19.0 pp | | Net (Loss) Income | $(1,037) | $1,612 | N/A | | Diluted EPS | $(0.06) | $0.10 | N/A | | Adjusted EBITDA | $(1,777) | $2,078 | N/A | - Revenue decrease was primarily due to a **lower number of units sold to a large customer**, partially offset by growth in recurring revenue from Fair Deal Agreements[6](index=6&type=chunk) - Cost of sales increased primarily related to **higher cost of service**[7](index=7&type=chunk) - Operating expenses increased across General and administrative (higher professional fees and compensation), Selling and marketing (tradeshows, clinical studies, payroll due to headcount increase), and Research and development (ongoing product development costs)[8](index=8&type=chunk)[9](index=9&type=chunk) [Six Months Ended June 30, 2025 Financial Performance](index=3&type=section&id=Six%20Month%20Financial%20Results) For H1 2025, revenues decreased to **$15.7 million** due to fewer unit sales, leading to a gross profit decline to **$7.3 million** (46.5% margin), significantly increased operating expenses, and a net loss of **$3.6 million** H1 2025 Financial Performance (in thousands) | Metric | H1 2025 | H1 2024 | YoY Change | | :---------------------- | :------ | :------ | :--------- | | Revenues | $15,659 | $19,902 | -21.3% | | Cost of Sales | $8,403 | $7,817 | +7.5% | | Gross Profit | $7,256 | $12,085 | -39.9% | | Gross Margin | 46.5% | 60.8% | -14.3 pp | | Net (Loss) Income | $(3,609) | $3,886 | N/A | | Diluted EPS | $(0.22) | $0.24 | N/A | | Adjusted EBITDA | $(4,258) | $5,126 | N/A | - Revenue decrease was primarily driven by a **lower number of units sold to a large customer** in the 2025 period[13](index=13&type=chunk) - Research and development expense significantly increased due to **lobbying costs related to billing code reimbursement**, increased headcount, and existing product development cost[16](index=16&type=chunk) - The effective tax rate decreased to **14.5% for H1 2025** from **26.6% for H1 2024**, primarily due to an increase in estimated tax credits[17](index=17&type=chunk) [Cash Position](index=3&type=section&id=Cash%20and%20cash%20equivalents) As of June 30, 2025, Sensus Healthcare maintained a stable cash position with **$22.2 million** in cash and cash equivalents, slightly up from December 31, 2024, and no outstanding debt Cash and Cash Equivalents (in thousands) | Metric | June 30, 2025 | Dec 31, 2024 | Change | | :-------------------- | :------------ | :----------- | :----- | | Cash and cash equivalents | $22,162 | $22,056 | +$106 | - The Company had **no outstanding borrowings** under its revolving line of credit at the end of either period[12](index=12&type=chunk) [Non-GAAP Financial Measures & Corporate Information](index=3&type=section&id=Use%20of%20Non-GAAP%20Financial%20Information) This section outlines Sensus Healthcare's use of non-GAAP financial measures, provides reconciliation, and includes corporate details and forward-looking statements [Use of Non-GAAP Financial Information](index=3&type=section&id=Use%20of%20Non-GAAP%20Financial%20Information) Sensus Healthcare utilizes Adjusted EBITDA, a non-GAAP financial measure, to analyze performance by excluding specific non-cash and non-operating items, providing supplemental information without replacing GAAP measures - **Adjusted EBITDA** is a non-GAAP financial measure used by management to analyze the Company's performance[11](index=11&type=chunk)[18](index=18&type=chunk) - Adjusted EBITDA excludes interest, income taxes, depreciation, amortization, and stock-compensation expense[11](index=11&type=chunk)[18](index=18&type=chunk) - Non-GAAP financial measures are not formally defined by GAAP, and other entities may use different calculation methods[18](index=18&type=chunk) [GAAP to Non-GAAP Reconciliation](index=4&type=section&id=GAAP%20TO%20NON-GAAP%20RECONCILIATION) This section provides a reconciliation table bridging GAAP Net (loss) income to Adjusted EBITDA for Q2 and H1 2025 and 2024, detailing adjustments for depreciation, stock compensation, income tax, and interest income GAAP to Non-GAAP Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------- | :------ | :------ | :------ | :------ | | Net (loss) income, as reported | $(1,037) | $1,612 | $(3,609) | $3,886 | | Add: Depreciation and amortization | $99 | $31 | $185 | $101 | | Add: Stock compensation expense | $67 | $65 | $146 | $156 | | Add: Income tax (benefit) expense | $(723) | $579 | $(613) | $1,406 | | Add: Interest income, net | $(183) | $(209) | $(367) | $(423) | | **Adjusted EBITDA, non GAAP** | **$(1,777)** | **$2,078** | **$(4,258)** | **$5,126** | - Adjusted EBITDA for Q2 2025 was **negative $1.8 million**, a significant decrease from positive **$2.1 million** in Q2 2024[11](index=11&type=chunk)[20](index=20&type=chunk) - Adjusted EBITDA for H1 2025 was **negative $4.3 million**, down from positive **$5.1 million** in H1 2024[20](index=20&type=chunk) [Conference Call and Webcast](index=4&type=section&id=Conference%20Call%20and%20Webcast) Sensus Healthcare hosted a conference call and webcast on August 7, 2025, to discuss financial results and provide a business update, with replay information available - An investment community conference call was hosted on **August 7, 2025, at 4:30 p.m. Eastern time**[1](index=1&type=chunk)[21](index=21&type=chunk) - A telephone replay was available until **September 7th**, and an archived webcast is available in the Investor Relations section of the Company's website[23](index=23&type=chunk) [About Sensus Healthcare](index=4&type=section&id=About%20Sensus%20Healthcare) Sensus Healthcare, Inc. is a global pioneer in developing and delivering non-invasive treatments for skin cancer and keloids, leveraging superficial radiotherapy (SRT and IG-SRT) technology - Sensus Healthcare, Inc. is a global pioneer in the development and delivery of **non-invasive treatments for skin cancer and keloids**[2](index=2&type=chunk)[24](index=24&type=chunk) - The company leverages its cutting-edge **superficial radiotherapy (SRT and IG-SRT) technology**[24](index=24&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements subject to various risks and uncertainties, including inflationary pressures, reimbursement levels, and regulatory requirements, which the company does not undertake to update - Forward-looking statements involve risks and uncertainties related to **inflationary pressures**, **government and/or third-party payor reimbursement levels**, and **customer concentration** in the U.S. and China[26](index=26&type=chunk) - Other risks include the development of new products by competitors, regulatory requirements, manufacturing process management, risks from doing business in foreign countries, IT system performance, data security, and intellectual property protection[26](index=26&type=chunk) - The company undertakes **no obligation to update** such statements to reflect events or circumstances after the date of the press release, except as may be required by applicable law[28](index=28&type=chunk) [Condensed Consolidated Financial Statements](index=6&type=section&id=SENSUS%20HEALTHCARE%2C%20INC.%20CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) This section presents Sensus Healthcare's condensed consolidated balance sheets and statements of operations for the reported periods [Condensed Consolidated Balance Sheets](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) The balance sheet shows total assets decreased to **$58.9 million** as of June 30, 2025, primarily due to a decrease in accounts receivable, while total liabilities slightly increased and stockholders' equity decreased Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 | Dec 31, 2024 | Change | | :-------------------- | :------------ | :----------- | :----- | | Total Assets | $58,852 | $62,165 | $(3,313) | | Cash and cash equivalents | $22,162 | $22,056 | $106 | | Accounts receivable, net | $12,622 | $19,731 | $(7,109) | | Inventories | $12,405 | $10,097 | $2,308 | | Total Liabilities | $6,788 | $6,338 | $450 | | Total Stockholders' Equity | $52,064 | $55,827 | $(3,763) | - Accounts receivable, net, decreased significantly from **$19.7 million at December 31, 2024**, to **$12.6 million at June 30, 2025**[31](index=31&type=chunk) - Inventories increased from **$10.1 million at December 31, 2024**, to **$12.4 million at June 30, 2025**[31](index=31&type=chunk) [Condensed Consolidated Statements of Operations](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) The statement of operations details financial performance for Q2 and H1 2025, showing declining revenues and gross profit, increased operating expenses, and a net loss for both periods, contrasting with net income in 2024 Condensed Consolidated Statements of Operations (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------- | :------ | :------ | :------ | :------ | | Revenues | $7,315 | $9,239 | $15,659 | $19,902 | | Cost of sales | $4,412 | $3,816 | $8,403 | $7,817 | | Gross profit | $2,903 | $5,423 | $7,256 | $12,085 | | Total operating expenses | $4,846 | $3,441 | $11,845 | $7,216 | | Net (loss) income | $(1,037) | $1,612 | $(3,609) | $3,886 | | Net (loss) income per share – basic | $(0.06) | $0.10 | $(0.22) | $0.24 | - Total operating expenses for the six months ended June 30, 2025, increased significantly to **$11.8 million** from **$7.2 million** in the prior year period[33](index=33&type=chunk) - The company reported a **net loss** for both the three and six months ended June 30, 2025, contrasting with net income in the corresponding periods of 2024[33](index=33&type=chunk)

Company Performance - Sensus Healthcare, Inc. closed at $5.51, reflecting a -2.48% change from the previous day, underperforming the S&P 500's gain of 0.4% [1] - Over the past month, shares of Sensus Healthcare, Inc. have increased by 17.22%, while the Medical sector and S&P 500 gained 1.19% and 4.61%, respectively [1] Earnings Forecast - The upcoming earnings release is expected to show an EPS of $0.01, indicating a 90% decline compared to the same quarter last year [2] - Revenue is anticipated to be $8.8 million, representing a 4.76% decrease from the same quarter last year [2] Annual Estimates - For the annual period, the Zacks Consensus Estimates predict earnings of $0.11 per share and revenue of $41.95 million, reflecting a -73.17% change in earnings and a +0.34% change in revenue from the previous year [3] Analyst Sentiment - Recent changes in analyst estimates are crucial as they reflect near-term business trends, with positive revisions indicating confidence in business performance [3] - The Zacks Rank system, which evaluates estimate changes, currently ranks Sensus Healthcare, Inc. at 4 (Sell) [5] Valuation Metrics - Sensus Healthcare, Inc. has a Forward P/E ratio of 51.36, significantly higher than the industry average of 23.12, indicating a premium valuation [6] - The Medical - Instruments industry is ranked 165 in the Zacks Industry Rank, placing it in the bottom 34% of over 250 industries [6]

Group 1 - Sensus Healthcare, Inc. (SRTS) experienced a stock increase of +2.54% to $4.44, outperforming the S&P 500's daily gain of 0.54% [1] - Prior to the recent trading session, the company's shares had declined by 8.65%, which was worse than the Medical sector's loss of 2.12% and the S&P 500's gain of 4.2% [1] Group 2 - The upcoming earnings report for Sensus Healthcare, Inc. is anticipated to show an EPS of $0.01, reflecting a 90% decline compared to the same quarter last year, with expected quarterly revenue of $8.8 million, down 4.76% year-over-year [2] - For the entire fiscal year, Zacks Consensus Estimates predict earnings of $0.11 per share and revenue of $41.95 million, indicating a decline of 73.17% in earnings and a slight increase of 0.34% in revenue from the previous year [3] Group 3 - The Zacks Rank system, which evaluates estimate revisions, currently ranks Sensus Healthcare, Inc. at 4 (Sell), with the consensus EPS estimate remaining unchanged over the past month [5] - The company's Forward P/E ratio stands at 39.36, which is significantly higher than the industry's Forward P/E of 22.47, indicating a premium valuation [6] Group 4 - The Medical - Instruments industry, to which Sensus Healthcare, Inc. belongs, has a Zacks Industry Rank of 162, placing it in the bottom 35% of over 250 industries [6][7]

Company Performance - Sensus Healthcare, Inc. closed at $4.64, reflecting a -2.11% change from the previous day, underperforming the S&P 500's daily loss of 0.11% [1] - Over the past month, shares have appreciated by 0.42%, lagging behind the Medical sector's gain of 1.66% and the S&P 500's gain of 5.17% [1] Upcoming Earnings - Analysts expect Sensus Healthcare, Inc. to report earnings of $0.01 per share, indicating a year-over-year decline of 90% [2] - The consensus estimate for revenue is $8.8 million, representing a 4.76% decline compared to the same quarter last year [2] Annual Estimates - For the annual period, the Zacks Consensus Estimates predict earnings of $0.11 per share and revenue of $41.95 million, reflecting shifts of -73.17% and +0.34% respectively from the previous year [3] - Recent changes in analyst estimates suggest evolving short-term business trends, with positive revisions indicating analyst optimism regarding business and profitability [3] Zacks Rank and Valuation - Sensus Healthcare, Inc. currently holds a Zacks Rank of 5 (Strong Sell), with the Zacks Consensus EPS estimate remaining steady over the past month [5] - The company is trading at a Forward P/E ratio of 43.09, which is a premium compared to the industry average Forward P/E of 27.15 [6] Industry Context - The Medical - Instruments industry, part of the Medical sector, has a Zacks Industry Rank of 181, placing it in the bottom 27% of over 250 industries [6] - The Zacks Industry Rank assesses the strength of industry groups based on the average Zacks Rank of individual stocks, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Investment Highlights - Superficial Radiation Therapy (SRT) systems offer practitioners a quick ROI, potentially within 6-9 months, driven by a 50+% increase in reimbursement for the treatment course[7] - The company launched the "Fair Deal Agreement" recurring revenue program for the SRT-100 Vision (IG-SRT) using the Sentinel IT platform[7] - In 2023, the company's revenues reached $24.4 million with an EPS of $0.03 per share[7] - In the first half of 2024, revenues were $20 million, a 152% increase, with an EPS of $0.24, compared to a loss of $0.14 per share in the first half of 2023[7] - The company shipped 66 SRT systems in 2023 and 49 SRT systems in the first half of 2024[7] - As of June 30, 2024, the company has a strong balance sheet with $19.0 million in cash & equivalents, no debt, and receivables of $18.3 million[7] Technology and Market - 1 in 5 Americans will develop skin cancer in their lifetime[2] - Recurrence rates of keloids are up to 80% with surgery and other current treatment methods[25] - The company's installed base is currently at approximately 750 systems worldwide[59] Clinical Studies - A 2019 clinical multi-center study of 776 lesions showed a 98.9% cure rate after a 5-year retrospective study for skin cancer[32] - A 2018 clinical study of 151 lesions on lower extremities showed a 97.35% cure rate and a 5-year success rate of 97% for skin cancer[32] - A 2018 clinical study on keloid surgery followed with SRT for 297 lesions showed a 97% success rate[32]

Core Viewpoint - Brokerage recommendations, particularly for Sensus Healthcare, Inc. (SRTS), indicate a strong buy sentiment, but reliance solely on these recommendations may not be prudent due to potential biases and misalignment with retail investors' interests [2][5][10]. Group 1: Brokerage Recommendations - Sensus Healthcare has an average brokerage recommendation (ABR) of 1.00, indicating a Strong Buy based on four recommendations, all of which are Strong Buy [2]. - Despite the strong buy recommendations, studies suggest that brokerage recommendations often fail to guide investors effectively towards stocks with high price appreciation potential [5][10]. - Analysts from brokerage firms tend to exhibit a positive bias in their ratings, with a ratio of five "Strong Buy" recommendations for every "Strong Sell" [6][10]. Group 2: Zacks Rank Comparison - The Zacks Rank, a proprietary stock rating tool, categorizes stocks from 1 (Strong Buy) to 5 (Strong Sell) and is based on earnings estimate revisions, which are more reliable indicators of near-term stock performance [8][11]. - The Zacks Rank is distinct from the ABR, as it is a quantitative model that reflects earnings estimate revisions rather than solely brokerage recommendations [9]. - The Zacks Rank is updated more frequently, providing timely insights into stock price predictions compared to the potentially outdated ABR [12]. Group 3: Earnings Estimates and Current Outlook - The Zacks Consensus Estimate for Sensus Healthcare has decreased by 61.4% over the past month to $0.11, indicating growing pessimism among analysts regarding the company's earnings prospects [13]. - This significant decline in earnings estimates has resulted in a Zacks Rank of 5 (Strong Sell) for Sensus Healthcare, suggesting caution despite the ABR indicating a buy [14].

分组1 - Sensus Healthcare, Inc. reported a quarterly loss of $0.16 per share, significantly missing the Zacks Consensus Estimate of $0.04, representing an earnings surprise of -500% [1] - The company posted revenues of $8.34 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 14.77%, but down from $10.66 million year-over-year [2] - Sensus Healthcare shares have declined approximately 30.4% since the beginning of the year, contrasting with the S&P 500's gain of 0.2% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.08 on revenues of $8.89 million, and for the current fiscal year, it is $0.29 on revenues of $43.45 million [7] - The Medical - Instruments industry, to which Sensus Healthcare belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $8.3 million, down from $10.7 million in Q1 2024, primarily due to lower unit sales to the largest customer [13] - Gross profit for Q1 2025 was $4.4 million, resulting in a gross margin of 52% [14] - The company reported a net loss of $2.6 million or a loss of $0.16 per share compared to net income of $2.3 million or $0.14 per diluted share in the prior year quarter [17] Business Line Data and Key Metrics Changes - The company shipped 21 SRT systems in Q1 2025, bringing the total installed base to over 880 systems [4] - There was a 65% increase in patient treatments from fair deal agreement installations when comparing Q1 volumes with Q4 [8] Market Data and Key Metrics Changes - The company expects to surpass 900 systems by the end of Q2 2025 and aims to reach 1,000 units under direct sale within the next twelve months [5] - The fair deal agreement program is anticipated to contribute significantly to revenue in the second half of 2025 [10] Company Strategy and Development Direction - The company is focusing on expanding its fair deal agreement program, which aligns financial interests with patient volume and practice utilization [9] - The international strategy is progressing, with participation in major industry events and targeted marketing activities [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to profitability in each of the next three quarters and for the full year [5] - The company is strategically executing plans to build sustainable long-term growth through FDA installations and product innovation [12] Other Important Information - Operating expenses increased significantly due to strategic growth initiatives, with general and administrative expenses rising to $2.2 million from $1.6 million a year ago [15] - Research and development expenses increased to $2.6 million from $0.9 million in the prior year period, reflecting continued investment in product innovation [16] Q&A Session Summary Question: How does the first quarter of 2025 compare to the first quarter of 2024? - Management expects each subsequent quarter to be profitable, driven by revenues from fair deal agreements and product sales [22] Question: Did any part of the first quarter revenue come from the fair deal agreement? - Yes, but it was not large enough to make a significant impact [24][26] Question: Has the existing U.S. tariff policy affected business confidence? - So far, there have been no observed tariff repercussions on any of the businesses [27] Question: What is the anticipated volume once fair deal agreements are fully operational? - It typically takes four to five months from signing an agreement to initial revenue generation [31] Question: What is the current installed base and target goal by the end of 2025? - The company is not providing specific guidance on the target goal but is moving along aggressively [45] Question: What marketing support will be provided to clinics to help them reach mature utilization rates? - The company will provide analytics and aggressive marketing strategies to help clinics attract patients [46] Question: What is the expected timeline for receiving payments after treatments? - Payments are typically received between 45 and 60 days after treatments [55] Question: What is the profile of attendees at smaller conferences? - Smaller conferences attract practitioners who may not attend larger events, providing opportunities for FDA agreements [57] Question: How do the installations match up with patient databases? - The installations tend to match well with the patient data, enhancing confidence in the targeted areas for treatment [61]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $8.3 million, down from $10.7 million in Q1 2024, primarily due to lower unit sales to the largest customer [12] - Gross profit for Q1 2025 was $4.4 million, resulting in a gross margin of 52% [12] - The company reported a net loss of $2.6 million or a loss of $0.16 per share compared to net income of $2.3 million or $0.14 per diluted share in the prior year [16] Business Line Data and Key Metrics Changes - The company shipped 21 SRT systems in Q1 2025, bringing the total installed base to over 880 systems [4][5] - A 65% increase in patient treatments from fair deal agreement installations was noted when comparing Q1 volumes with Q4 [7] Market Data and Key Metrics Changes - The company expects to surpass 900 systems by the end of Q2 2025 and aims to reach 1,000 units under direct sale within the next twelve months [5] - The fair deal agreement program is anticipated to contribute significantly to revenue in the second half of 2025 [9] Company Strategy and Development Direction - The company is focusing on expanding its fair deal agreement initiative, which aligns financial interests with patient volume and practice utilization [8] - There is an ongoing strategy to enhance international presence and product innovation, particularly with the transdermal infusion system [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to profitability in each of the next three quarters and for the full year [5][17] - The company is confident in the trajectory for the remainder of 2025, particularly as FDA agreements begin to contribute to revenue [65] Other Important Information - Operating expenses increased significantly due to strategic growth initiatives, with general and administrative expenses rising to $2.2 million from $1.6 million a year ago [13] - Research and development expenses increased to $2.6 million from $0.9 million in the prior year, reflecting continued investment in product innovation [15] Q&A Session Summary Question: How does the first quarter of 2025 compare to the first quarter of 2024? - Management expects each subsequent quarter to be profitable, driven by revenues from fair deal agreements and product sales [20] Question: Did any part of the first quarter revenue come from the fair deal agreement? - Yes, but it was not large enough to significantly impact overall revenue [21][22] Question: Has the existing U.S. tariff policy affected business confidence? - So far, there have been no observed tariff repercussions on any of the businesses [24] Question: What is the anticipated volume once fair deal agreements reach full capacity? - Revenue generation typically begins four to five months after signing the agreement, with significant revenue contributions expected in the second half of 2025 [28][34] Question: What support will be provided to clinics to reach mature utilization rates? - The company plans to provide analytics and marketing support to help clinics identify and access patients [44] Question: What is the current installed base and target goal by the end of 2025? - The company is not providing specific guidance on the target goal but is moving along aggressively with existing installations [43] Question: What is the timeline for receiving payments after treatments? - Payments are typically received between 45 and 60 days after treatments occur [52]