Financial Performance - As of March 31, 2025, the company reported an accumulated deficit of $321.3 million, up from $308.9 million as of December 31, 2024[199]. - Revenues for the three months ended March 31, 2025, were $13.6 million, a decrease of 22.3% compared to $17.5 million for the same period in 2024[232]. - The net loss attributable to the company for the three months ended March 31, 2025, was $12.4 million, compared to a net loss of $9.8 million in the same period of 2024[232]. - Adjusted EBITDA loss for the three months ended March 31, 2025, was $8.3 million, an increase from a loss of $5.1 million in the same period of 2024[232]. - Total revenue decreased by $3.8 million, or 21.9%, to $13.6 million for the three months ended March 31, 2025, from $17.5 million for the same period in 2024[274]. - Gross profit for the three months ended March 31, 2025, was $8.8 million, down from $11.6 million in 2024, reflecting a gross profit margin of 64.2% compared to 66.6%[272]. - Loss from operations increased to $9.5 million for the three months ended March 31, 2025, compared to a loss of $7.8 million in 2024[272]. Cash and Financing - The company had cash and cash equivalents of $3.2 million as of March 31, 2025, compared to $4.3 million as of December 31, 2024[199]. - Cash provided by financing activities for the three months ended March 31, 2025, was $5.3 million, primarily from short-term bridge financing[315]. - The company expects to use proceeds from various financing activities for general working capital purposes[301]. - The company entered into a Loan and Security Agreement on April 23, 2024, providing for a term loan of $2.2 million and additional delayed draw term loans of up to $2.8 million[216]. - The company generated gross proceeds of $6.7 million from the 2022 Private Placement, completed on November 18, 2022[206]. - The company completed multiple placements under the 2023 Multi-Tranche Private Placement, raising a total of $5.0 million through various transactions[209][210][211]. - The company may issue up to $9.0 million in shares of Senior Preferred Stock under the 2023 Multi-Tranche Private Placement, with the initial placement generating $2.0 million from the sale of 280,899 shares[298]. Operational Challenges - The company has incurred recurring net operating losses and negative cash flows from operations, indicating ongoing financial challenges[199]. - The company anticipates supply challenges during 2025 due to geopolitical disruptions and inflationary pressures affecting production lead times[245]. - The U.S. Federal administration has increased tariffs on goods imported from Israel to 10%, impacting the company's cost of goods and potentially leading to margin erosion[243][245]. - The company has ceased direct sales operations in 14 countries since June 2020, focusing on the U.S. market to improve profitability[239]. - The decline in lease program revenues in the first three months of 2025 was attributed to a strategy prioritizing cash deals and economic uncertainty impacting customers' financing capabilities[252]. Sales and Revenue Sources - Approximately 25% of the company's aesthetic system revenues were derived from internal lease programs in the three months ended March 31, 2025, consistent with the same period in 2024[226]. - Approximately 68% of total system revenues for the three months ended March 31, 2025, were derived from traditional sales, compared to 62% for the same period in 2024[253]. - Revenues from internal financing programs accounted for approximately 25% of total system revenues for both the three months ended March 31, 2025, and 2024[252]. - Revenues from distributor sales decreased to approximately 7% of total system revenues for the three months ended March 31, 2025, down from 13% in 2024[256]. - A total of 196 systems were delivered in the three months ended March 31, 2025, down from 314 systems delivered in the same period of 2024, representing a decline of 37.5%[238]. - The company sold 196 systems in Q1 2025, a decrease of 37.5% from 314 systems sold in Q1 2024, with systems revenue from internal lease programs remaining at approximately 25%[275]. Expenses and Cost Management - Operating expenses totaled $18.3 million for the three months ended March 31, 2025, compared to $19.4 million in 2024, with selling and marketing expenses at $7.0 million[272]. - Total operating expenses were $18.3 million in Q1 2025, a decrease of $1.1 million, or 5.8%, compared to $19.4 million in Q1 2024[279]. - Selling and marketing expenses decreased by $0.4 million, or 5.2%, in Q1 2025, but as a percentage of total revenues, they increased from 42.2% to 51.2%[280]. - General and administrative expenses decreased by $0.5 million, or 5.0%, in Q1 2025, but increased as a percentage of total revenues from 58.6% to 71.4%[281]. - Research and development expenses are expected to increase in absolute dollars as the company continues to invest in new products and technologies[265]. - Research and development expenses decreased by $0.2 million, or 12.8%, in Q1 2025, with an increase in percentage of total revenues from 10.2% to 11.4%[282]. Regulatory and Compliance - The company has received regulatory clearance for twelve novel aesthetic technology platforms, including ARTAS and NeoGraft systems, enhancing its product offerings[229]. - The allowance for expected credit losses as of March 31, 2025, was $3.1 million, representing approximately 11% of gross outstanding accounts receivable, down from $5.3 million or 13% as of March 31, 2024[241][248]. - The allowance for expected credit losses is based on customer account collectability assessments and aging of invoices, reflecting the company's best estimate of probable credit losses[327]. - Warranty accruals are recorded at the time of sale, based on historical costs and management estimates, with a one-year warranty period for systems sold[328]. - Stock-based compensation costs are recognized based on fair values, using the Black-Scholes option-pricing model for estimating stock options[329][330]. Market and Economic Conditions - The company operates directly in 11 international markets through 9 offices, including the United States, Canada, and China[231]. - The company expects a shift in the ratio of lease program sales to traditional sales to approximately 30:70 for the remainder of 2025 and beyond[286]. - The company anticipates that inventory levels will remain relatively flat in the short term but will increase at a lower rate than revenue growth over the longer term[286]. - The company is restricted by covenants in its loan agreements, which may limit its ability to incur additional indebtedness[306]. Accounting and Reporting - Revenue is recognized based on ASC 606, which includes five steps for contract identification and performance obligation satisfaction[323]. - Long-term receivables are related to internal lease programs with payment terms exceeding one year, discounted at implicit interest rates between 8% and 10%[325]. - Recent accounting pronouncements are detailed in the quarterly report, affecting financial statement presentation and recognition[333]. - As a smaller reporting company, the company is not required to provide disclosures about market risk[334].

Financial Performance - Total revenue for Q1 2025 was $13.6 million, down 22% year-over-year from $17.5 million in Q1 2024[6] - U.S. revenue decreased by $1.7 million, or 16.5%, to $8.4 million, while international revenue decreased by $2.2 million, or 29.3%, to $5.2 million[7] - Gross profit for Q1 2025 decreased by $2.9 million, or 25%, to $8.8 million, with a gross margin of 64.2% compared to 66.6% in Q1 2024[8] - Revenue for the three months ended March 31, 2025, was $13,643 million, a decrease of 22.3% compared to $17,479 million in the same period of 2024[22] - Net loss for the three months ended March 31, 2025, was $12,366 million, compared to a net loss of $9,789 million in the same period of 2024, representing a 26.1% increase in losses[22] - Adjusted EBITDA for the three months ended March 31, 2025, was $(8,344) million, compared to $(5,118) million in the same period of 2024, indicating a worsening operational performance[27] Operating Expenses - Operating expenses for Q1 2025 decreased by $1.1 million, or 6%, to $18.3 million, reflecting cost containment efforts[9] - Total operating expenses for the three months ended March 31, 2025, were $18,283 million, down from $19,407 million in the same period of 2024, a decrease of 5.8%[22] - Cash used in operating activities for the three months ended March 31, 2025, was $(6,310) million, compared to $(2,878) million in the same period of 2024, reflecting increased cash outflows[24] Cash and Debt - Cash and cash equivalents as of March 31, 2025, were $3.2 million, down from $4.3 million at the end of 2024[12] - Total debt obligations decreased to approximately $35.5 million from $39.7 million as of December 31, 2024[12] - Cash and cash equivalents and restricted cash at the end of the period were $3,199 million, down from $5,087 million at the end of the same period in 2024[24] Shareholder Impact - The net loss attributable to stockholders for Q1 2025 was $12.4 million, or $17.44 per share, compared to a net loss of $9.8 million, or $16.91 per share in Q1 2024[11] - The weighted-average number of shares used in the basic and diluted loss per share calculation increased to 709 million in 2025 from 579 million in 2024[22] Strategic Actions - The company is not providing full-year 2025 financial guidance due to ongoing evaluations of strategic alternatives and potential trade disruptions[13] - The company completed a registered direct offering, raising approximately $1.1 million and $1.57 million from two separate transactions in April 2025[6] - The company intends to challenge the Canada Revenue Agency's assessment regarding the denial of CEWS claims, which could impact future cash flows[29] Foreign Exchange - The company experienced a foreign exchange gain of $(119) million for the three months ended March 31, 2025, compared to a loss of $324 million in the same period of 2024[27] Loss on Debt - The company reported a loss on debt extinguishment of $1,049 million for the three months ended March 31, 2025[27] Revenue Sources - The percentage of total systems revenue derived from the company's internal lease programs was approximately 25% in Q1 2025, consistent with the prior year[7]

Core Viewpoint - Venus Concept Inc. reported a decline in financial performance for the first quarter of 2025, with total revenue decreasing by 22% year-over-year, attributed to challenging market conditions and timing of new system adoptions [5][10]. Financial Results Summary - Total revenue for Q1 2025 was $13.6 million, down from $17.5 million in Q1 2024, reflecting a decrease of $3.8 million or 21.9% [5][6]. - Revenue breakdown showed a 29.3% decrease in international revenue and a 16.5% decrease in U.S. revenue [6]. - Revenue from products—systems decreased by 25%, and lease systems revenue also saw a 25% decline [6][7]. - Gross profit for Q1 2025 was $8.8 million, a decrease of 25% compared to Q1 2024, with a gross margin of 64.2% [7][10]. - Operating expenses decreased by 6% year-over-year to $18.3 million, driven by reductions in general and administrative, selling and marketing, and research and development expenses [8][9]. - The company reported a GAAP net loss of $12.4 million for Q1 2025, compared to a net loss of $9.8 million in Q1 2024 [10][11]. Management Commentary - The CEO emphasized solid execution despite a challenging environment and indicated a focus on managing cash burn and making targeted investments for long-term growth [3][4]. - The company enhanced its balance sheet with a new bridge loan amendment and two equity capital transactions, indicating validation from investors regarding its potential value creation [3][4]. Cash Position and Debt - As of March 31, 2025, the company had cash and cash equivalents of $3.2 million and total debt obligations of approximately $35.5 million, a decrease from $39.7 million at the end of 2024 [11][12]. - The company is currently not providing full-year 2025 financial guidance due to ongoing evaluations of strategic alternatives and potential trade disruptions [12]. Conference Call Details - Management will host a conference call to discuss the quarterly results, providing an opportunity for questions and answers [13].

Core Viewpoint - Venus Concept Inc. has successfully closed a registered direct offering, raising approximately $1.57 million through the sale of 386,700 shares at a price of $4.06 per share, with total gross proceeds from recent offerings amounting to approximately $2.7 million [1][2]. Group 1: Offering Details - The offering was conducted under Nasdaq rules, with H.C. Wainwright & Co. serving as the exclusive placement agent [1]. - The gross proceeds from the offering were approximately $1.57 million before deducting fees and expenses, and combined with a previous offering, the total gross proceeds reached approximately $2.7 million [2]. - The shares were offered under a "shelf" registration statement that was effective as of November 1, 2024, and the offering was made via a prospectus [3]. Group 2: Company Overview - Venus Concept is a global leader in medical aesthetic technology, offering a wide range of minimally invasive and non-invasive products across over 60 countries [5]. - The company's product portfolio includes various aesthetic device platforms and hair restoration systems, supported by prominent healthcare growth equity investors [5].

Core Viewpoint - Venus Concept Inc. has announced a registered direct offering of 386,700 shares of common stock at a price of $4.06 per share, expecting gross proceeds of approximately $1.5 million before expenses [1][2]. Group 1: Offering Details - The offering is being conducted under Nasdaq rules and is expected to close around April 14, 2025, pending customary closing conditions [1]. - H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering [2]. - The net proceeds from the offering will be used for general corporate purposes [2]. Group 2: Company Overview - Venus Concept is a global leader in medical aesthetic technology, offering a wide range of minimally invasive and non-invasive products across over 60 countries [5]. - The company's product portfolio includes various aesthetic device platforms and hair restoration systems, such as NeoGraft® and the ARTAS iX® Robotic Hair Restoration system [5]. - Venus Concept is supported by prominent healthcare industry growth equity investors, including EW Healthcare Partners and HealthQuest Capital [5].

Core Viewpoint - Venus Concept Inc. has successfully closed a registered direct offering of 328,573 shares of common stock at a price of $3.50 per share, generating gross proceeds of approximately $1.1 million before expenses [1][2]. Company Overview - Venus Concept is a global leader in medical aesthetic technology, offering a wide range of minimally invasive and non-invasive products across over 60 countries and 12 direct markets [5]. - The company's product portfolio includes various aesthetic device platforms and hair restoration systems, such as NeoGraft® and the ARTAS iX® Robotic Hair Restoration system [5]. - The company is backed by prominent healthcare growth equity investors, including EW Healthcare Partners, HealthQuest Capital, Longitude Capital Management, Aperture Venture Partners, and Masters Special Situations [5]. Offering Details - The offering was conducted under a "shelf" registration statement that became effective on November 1, 2024, and was facilitated by H.C. Wainwright & Co. as the exclusive placement agent [3]. - The net proceeds from the offering will be utilized for general corporate purposes [2].

Core Points - Venus Concept Inc. has announced a registered direct offering of 328,573 shares of common stock at a price of $3.50 per share, expected to close around April 10, 2025 [1] - The gross proceeds from the offering are anticipated to be approximately $1.1 million, which will be used for general corporate purposes [2] Company Overview - Venus Concept is a global leader in medical aesthetic technology, offering a wide range of minimally invasive and non-invasive products across over 60 countries [5] - The company's product portfolio includes various aesthetic device platforms and hair restoration systems, supported by prominent healthcare growth equity investors [5]

Company Overview - Venus Concept Inc. is a global leader in medical aesthetic technology, offering a wide range of minimally invasive and non-invasive products for aesthetic and hair restoration [4] - The company operates in over 60 countries and has 12 direct markets, showcasing its extensive reach in the industry [4] - Venus Concept's product portfolio includes various aesthetic device platforms and hair restoration systems, such as NeoGraft® and the ARTAS iX® Robotic Hair Restoration system [4] Financial Results Announcement - The company will release its first quarter fiscal year 2025 financial results on May 15, 2025, before the market opens [1] - A conference call will be held at 8:00 a.m. Eastern Time on the same day to discuss the results and conduct a Q&A session [2] - For those unable to attend, a replay of the call will be available for two weeks, and the webcast will be archived on the company's investor relations website [3]

Financial Position Improvement - Venus Concept Inc. announced the exchange of $11.0 million of subordinated convertible notes for 379,311 shares of Series Y preferred stock, resulting in total debt obligations of approximately $35.5 million, a reduction of 54% from $76.7 million as of March 31, 2024, and down 11% from $39.7 million as of December 31, 2024 [1][2] Capital Structure Optimization - The CEO of Venus Concept stated that the recent transaction is part of ongoing efforts to optimize the company's capital structure, providing additional flexibility for long-term growth and profitability [2] Operational Improvements - Madryn Asset Management expressed confidence in Venus Concept's operational improvements through its transformation plan, indicating that the debt conversion reflects their support for the company's evolution with a strengthened balance sheet and new product roadmap [2] Company Overview - Venus Concept is a global leader in medical aesthetic technology, offering a broad product portfolio that includes minimally invasive and non-invasive technologies, reaching over 60 countries and 10 direct markets [4]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $15.8 million, a decline of $2.4 million or 13% year-over-year [24][6] - Lease revenue decreased by $3.5 million or 58% year-over-year in Q4, offsetting mid-teens growth in cash system sales [7][6] - Net loss attributable to stockholders for Q4 2024 was $8 million or $11.23 per share, compared to a net loss of $11.1 million or $20.14 per share for Q4 2023 [32] Business Line Data and Key Metrics Changes - Cash system sales in the U.S. increased by 27% year-over-year, representing 87% of total U.S. system sales in Q4 compared to 58% last year [8] - The percentage of total systems revenue from internal lease programs decreased from approximately 41% in the prior year to 20% in Q4 2024 [25] - Sales through distributors more than doubled year-over-year in Q4, particularly in the APAC and EMEA regions [12] Market Data and Key Metrics Changes - Revenue results in fiscal year 2024 reflected a decline of 15% year-over-year, which was better than many competitors [13] - The decline in total revenue was driven by a 13% decrease in both U.S. and international revenue [24][25] - Customer financing pressures and economic uncertainty continue to impact system adoption [10] Company Strategy and Development Direction - The company is focused on transitioning to cash system sales, aiming for 70% to 75% of total systems revenue to come from cash sales [26] - A strategic initiative to restructure debt obligations resulted in a 47% reduction in total debt from $74.9 million to approximately $39.7 million [17] - The company plans to launch a new body system in the second half of 2025, which is expected to drive growth [55] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that macroeconomic headwinds will continue to impact quarterly performance but remains optimistic about returning to growth [14][36] - The company is not providing full-year 2025 financial guidance but expects total revenue for Q1 2025 to be at least $14 million [36] - Management believes that the impact of strategic transitions is behind them, looking forward to a more normalized business profile [13][42] Other Important Information - A 1 for 11 reverse stock split was announced, with the company's common stock trading on an adjusted basis starting March 4, 2025 [21] - The company has made significant progress in reducing cash used in operations by 14% year-over-year [15] Q&A Session Summary Question: Can you characterize what a normal business profile is going forward? - Management indicated that while predicting the macroeconomic environment is challenging, they expect performance to improve compared to 2024 [42] Question: How is the Venus Hair business performing? - Management expressed satisfaction with the performance of the Venus Hair business, particularly the Venus ARTAS Robot, and noted ongoing R&D innovations [46][47] Question: What is the strategy for top-line growth in 2025? - Management highlighted the need to establish a normal rhythm of orders with new distribution partners and anticipates growth in international business [53][54] Question: Are there further cost-cutting measures available? - Management stated that the infrastructure is efficient, and the focus is on increasing sales rather than further cost reductions [57] Question: How do tariffs affect the business? - Management noted that products are manufactured in both the U.S. and Israel, and currently, they do not expect a substantial near-term impact from tariffs [60]