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]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $15.8 million, down $2.4 million or 13% year-over-year, primarily due to a mid-teens decline in systems revenue and a mid-single-digit decline in procedure-related products and service revenue [6][24] - Lease revenue declined by $3.5 million or 58% year-over-year in Q4, offsetting mid-teens growth in cash system sales [7][24] - Cash system sales in the U.S. increased 27% year-over-year, representing 87% of total U.S. system sales in Q4 compared to 58% last year [8][10] - Gross profit decreased by $1.2 million or 10% to $10.9 million, with gross margin improving to 69.1% from 66.5% year-over-year [29] Business Line Data and Key Metrics Changes - Systems revenue from internal lease programs decreased to approximately 20% in Q4 2024 from 41% in the prior year, reflecting a strategic shift towards cash sales [25] - Cash systems revenue and sales of products and services increased by 10% year-over-year in Q4 [24][25] - The company achieved a 14% reduction in cash used in operations year-over-year in 2024, indicating progress in operational efficiency [15] Market Data and Key Metrics Changes - The decline in global systems adoption was attributed to macroeconomic headwinds, including customer financing pressures and economic uncertainty [9][10] - Sales through distributors more than doubled year-over-year in Q4, particularly in the APAC and EMEA regions [12] Company Strategy and Development Direction - The company is focused on transitioning to higher quality cash revenues and has made significant progress in restructuring its debt obligations, reducing total debt from $74.9 million to approximately $39.7 million [17][20] - The strategic initiatives include cost reductions, shifting to cash sales, and working capital management, which are expected to enhance long-term profitability [14][15] - The company plans to launch a new body device in the second half of 2025, which is anticipated to drive growth [54] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that while the strategic transition is largely complete, macroeconomic challenges will continue to impact quarterly performance [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] 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 secured an amendment to its bridge loan agreement, increasing financing capacity by $10 million [22][34] Q&A Session Summary Question: Can you characterize the expected normalized business profile going forward? - Management indicated that while predicting the macroeconomic environment is challenging, they expect performance to improve compared to 2024, with less decline anticipated [40][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 [44][46] Question: What is the strategy for top-line growth in 2025? - The focus will be on establishing a normal rhythm of orders with new distribution partners internationally and launching a new body system in the U.S. [52][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 [56][58] Question: How do tariffs affect the business? - Products are manufactured in both the U.S. and Israel, with no substantial near-term impact expected from tariffs at this time [60]

Financial Performance and Condition - For the year ended December 31, 2024 and 2023, approximately 26% and 33% of the company's system revenues were derived from internal financing programs[152]. - The company had an accumulated deficit of $308.9 million and $261.9 million as of December 31, 2024 and 2023, respectively[159]. - The company expects to continue incurring substantial operating losses and negative cash flows until it achieves profitability[160]. - The company may need additional capital to fund future operations due to unfavorable macroeconomic conditions[161]. - Global supply chain disruptions and inflation have negatively impacted the company's business, financial condition, and results of operations[162]. - As of December 31, 2024, the Company had cash and cash equivalents of approximately $4.3 million, indicating a need for additional financing to support operations and product development[183]. - The Company generated 13% of systems revenues from third-party distributors in 2024, up from 8% in 2023, highlighting reliance on external partners for market penetration[197]. - The company may recognize bad debt expenses if customers default on amounts payable, which could adversely affect its financial results[152]. - The company faces risks related to economic downturns, which may reduce patient demand for elective procedures, adversely affecting financial performance[189]. Strategic Alternatives and Restructuring - The company is evaluating potential strategic alternatives, including mergers, financings, and asset sales, but has not set a timetable for completion[156]. - The company has initiated a restructuring plan, including workforce reductions and discontinuation of operations in unprofitable markets[155]. - The company may need to raise additional capital through public or private equity or debt financings, which could result in dilution to stockholders[185]. - The Security Agreement restricts the Company's ability to incur additional indebtedness, potentially limiting future financing options[186]. Regulatory and Compliance Risks - Regulatory compliance is critical, as failure to meet FDA requirements could result in enforcement actions, including fines and product recalls[239]. - The company may face significant costs and delays if regulatory authorities change policies or if new regulations are enacted[238]. - The complexity of patent litigation may lead to substantial costs and could distract management from core business operations[232]. - The company must navigate extensive government regulations, which have become more stringent over time[237]. Intellectual Property and Innovation - The company has 16 issued U.S. patents and 8 pending U.S. patent applications as of December 31, 2024, covering various technologies[229]. - The company has 92 issued U.S. patents related to the ARTAS System, which is crucial for maintaining competitive advantage[229]. - The company must continue to innovate and develop new products to maintain its competitive position in the rapidly evolving medical technology market[196]. - The aesthetic equipment market is characterized by rapid innovation, and failure to develop new products may harm the Company's competitive position[195]. Market and Operational Risks - The company relies on a limited number of third-party contract manufacturers, which poses risks to timely and cost-effective production[206]. - The company is vulnerable to supply shortages and price fluctuations due to reliance on sole suppliers for certain components[209]. - The clinical trial process for regulatory clearances is lengthy and expensive, with uncertain outcomes that could delay new product introductions[219]. - Delays in clinical trials can significantly increase product development costs and may lead to trial failures[222]. - The company may face significant financial and managerial resource allocation if international operational risks materialize[204]. Stock and Shareholder Matters - The company received a notice from Nasdaq on May 31, 2023, indicating that its stockholders' equity was below the minimum requirement of $2,500,000 for continued listing[263]. - Nasdaq granted the company an extension until November 27, 2023, to regain compliance with the Minimum Equity Requirement, contingent upon achieving certain milestones[264]. - On November 28, 2023, Nasdaq determined that the company had not regained compliance, advising that its securities would be delisted on December 7, 2023, unless a hearing was requested[264]. - The company requested a hearing on December 5, 2023, which was held on March 5, 2024, staying any delisting pending the Panel's decision[265]. - On March 20, 2024, the Panel granted the company's request for continued listing, subject to demonstrating compliance with Nasdaq Listing Rule 5550(b) by May 28, 2024[265]. - The company was notified on June 4, 2024, that it had regained compliance with the stockholders' equity Minimum Equity Requirement[266]. - The company is under a "Mandatory Panel Monitor" through June 4, 2025, which could lead to delisting if noncompliance occurs during this period[267]. - On April 11, 2024, the company received a notice regarding noncompliance with the Minimum Bid Price Requirement, as its stock did not maintain a minimum closing bid price of $1.00 per share for 32 consecutive business days[268]. - The company has 180 calendar days from the Initial Compliance Date to regain compliance with the Minimum Bid Price Requirement[269]. - The Company received a notification from Nasdaq on October 17, 2024, granting an additional 180 calendar days to regain compliance with the Bid Price Requirement[270]. - A 1-for-11 reverse stock split was executed on March 3, 2025, and the Company regained compliance with the Bid Price Requirement by March 18, 2025[271]. - As of December 31, 2024, executive officers, directors, and certain shareholders beneficially own approximately 25% of the outstanding shares of common stock, allowing them to significantly influence shareholder matters[281]. - The Company does not intend to pay dividends on its common stock for the foreseeable future, relying on stock price appreciation for shareholder returns[277]. - The Company is classified as a smaller reporting company, which allows it to take advantage of certain exemptions from disclosure requirements, potentially making its securities less attractive to investors[276]. - Future sales of common stock may lead to immediate dilution for existing shareholders, potentially causing a decline in stock price[282]. - The market price of the Company's common stock may be volatile, influenced by various factors including market conditions and strategic alternatives[274]. - The Company is subject to anti-takeover provisions under Delaware law, which may hinder acquisition attempts[280]. - If the common stock is delisted, shareholders could face significant adverse consequences, including reduced liquidity and limited market quotations[272]. - The Company may experience fluctuations in financial results, which could impact stock price and investor perception[275].