Financial Data and Key Metrics Changes - Q4 2025 revenues reached $13.4 million, a 30% increase compared to the same quarter last year, with full-year revenues of $44.1 million, up 35% from 2024 [4][20] - Adjusted EBITDA for Q4 was $4.8 million, up from $3.7 million in the prior year, representing 36% of revenues, while full-year adjusted EBITDA rose to $13.6 million, an 89% increase from $7.2 million the previous year [4][20] - Gross margins expanded to 77%, driven by pricing improvements in consumables and reductions in system cost of revenue [20] Business Line Data and Key Metrics Changes - The company sold 624 UltraMIST systems in 2025, compared to 374 in the previous year, with Q4 sales of 255 systems marking a record high [4][20] - The dermaPACE and Profile product lines were sunset in Q4, leading to increased costs in goods sold and operating expenses [5] Market Data and Key Metrics Changes - The company noted significant pressure in the wound care market due to changes in CMS reimbursement policies, which have led to a reduction in reimbursement prices for skin substitutes [6][7] - The company observed a decline in customer count and patient count within its customer base due to these pressures, impacting growth rates [8] Company Strategy and Development Direction - The company is focusing on expanding its active system base and engaging with new resellers to capitalize on market opportunities created by industry disruptions [11][12] - The strategy includes working with resellers who have strong customer relationships and expertise in wound care, aiming to increase market penetration [12][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by CMS changes but expressed optimism about the long-term market direction, indicating that the current disruption could lead to favorable conditions for the company [18][28] - The company anticipates a revenue growth range of 16%-25% for 2026, with expectations of improved performance in the latter half of the year [28][40] Other Important Information - A restatement of financials was completed, primarily related to previously unrecognized sales tax liabilities, with a total revenue impact of approximately $300,000 [21] - The company is actively working with tax advisors to strengthen compliance processes and controls [22] Q&A Session Summary Question: Can you speak about the selling cycle for inbound interests? - Management noted that the selling cycle has been stretched due to industry shock but is starting to improve [33] Question: What can we expect for adjusted EBITDA in 2026? - Management refrained from providing specific guidance but indicated that incremental revenue would likely drop to about 50% at the EBITDA line [35] Question: How should we think about growth rates after Q1? - Management expects the rest of the year to be better than Q1, but it is too early to break it down by quarter [40] Question: What does the commercial organization look like? - The internal sales force is being expanded, and the company is working with larger resellers that have significant personnel [42][43] Question: Can you provide updates on the manufacturing line for applicators? - Management reported delays in qualifying the new manufacturing line but is hopeful for progress in the coming months [56]

Financial Data and Key Metrics Changes - Q4 2025 achieved record revenues of $13.4 million, a 30% increase compared to the same quarter last year, with Adjusted EBITDA rising to $4.8 million from $3.7 million, representing 36% of revenues [4][20] - Full year revenues reached $44.1 million, up 35% from 2024, with Adjusted EBITDA increasing to $13.6 million, an 89% rise from $7.2 million the previous year [4][20] - Gross margins expanded to 77%, driven by pricing improvements in consumables and reductions in system cost of revenue [20] Business Line Data and Key Metrics Changes - The company sold 624 UltraMIST systems in 2025, compared to 374 in the previous year, with Q4 sales of 255 systems marking the highest in company history [4][20] - The company discontinued the dermaPACE and Profile product lines in Q4, which impacted costs [5] Market Data and Key Metrics Changes - Changes in CMS reimbursement for skin substitutes have significantly affected the industry, with a 90%-95% price cut in a $15 billion category, leading to intense pressure on practitioners [6][7] - The company noted a reduction in customer count and patient count due to the reimbursement changes and audit pressures [8] Company Strategy and Development Direction - The company is focusing on expanding its active system base and engaging with new resellers to capitalize on market opportunities created by industry disruptions [11][12] - The strategy includes working with resellers who have strong customer relationships and expertise in wound care, aiming to increase market penetration [12][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the current challenges in the wound care space but expressed optimism about future growth as new market opportunities arise [18][28] - The company anticipates a revenue growth range of 16%-25% for 2026, despite the initial impact of CMS changes [28] Other Important Information - The company restated financials due to previously unrecognized sales tax liabilities and revenue allocation errors, with a total revenue impact of approximately $300,000 [21] - Current assets totaled $24.6 million as of December 31, 2025, with cash and cash equivalents at $12 million [26] Q&A Session Summary Question: Can you speak about the selling cycle for inbound interests? - Management noted that the selling cycle has been stretched due to industry shock but is starting to improve [32][33] Question: What can we expect for Adjusted EBITDA in 2026? - Management refrained from providing specific guidance but indicated that incremental revenue would likely drop around 50% to the EBITDA line [34][35] Question: How should we think about growth rates after Q1? - Management expects the rest of the year to be better than Q1, but it is too early to break it down by quarter [38][40] Question: What does the commercial organization look like? - The internal sales force is being expanded, and the company is working with larger resellers that have significant personnel [42][43] Question: Can you provide updates on the manufacturing line for applicators? - Management reported delays in qualifying the new manufacturing line but is hopeful for progress in the coming months [56] Question: Why were 168 UltraMIST systems discontinued? - Discontinuations were primarily due to customers not ordering for six months or no longer operating their businesses [63][64] Question: Do customers tend to use UltraMIST consumables at a steady rate? - Usage rates vary significantly by customer type, with some ramping up quickly while others take longer [71][72]

Financial Data and Key Metrics Changes - Q4 2025 revenue reached $13.4 million, a 30% increase compared to the same quarter last year, with full-year revenue of $44.1 million, up 35% from 2024 [5][22] - Adjusted EBITDA for Q4 was $4.8 million, up from $3.7 million in the prior year, representing 36% of revenues, while full-year adjusted EBITDA rose to $13.6 million, an 89% increase from $7.2 million the previous year [5][22] - Gross margins expanded to 77% year-over-year, driven by pricing improvements in consumables and reductions in system cost of revenue [22] Business Line Data and Key Metrics Changes - The company sold 624 UltraMIST systems in 2025, compared to 374 in the prior year, with Q4 sales of 255 systems marking a record high [5][22] - The dermaPACE and Profile product lines were sunset in Q4, leading to increased costs in goods sold and operating expenses [6] Market Data and Key Metrics Changes - The reduction in reimbursement prices for skin substitutes has significantly impacted the industry, with a 90%-95% price cut in a $15 billion category, affecting customer operations and growth rates [8][10] - The company noted a shift in customer dynamics, with some mobile wound providers dissolving while new ones are emerging, indicating a changing landscape in the market [12][20] Company Strategy and Development Direction - The company is focusing on expanding its active system base and engaging with new resellers to capitalize on market opportunities created by industry disruptions [13][14] - A new customer category termed "baby elephants" is emerging, consisting of small groups of practitioners looking to expand their operations significantly [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by CMS reimbursement changes but expressed optimism about the long-term market direction favoring evidence-based and cost-effective wound care solutions [20] - The company anticipates a gradual recovery in growth rates as the market stabilizes, with guidance for Q1 2026 revenues expected to be between $9.6 million and $10.3 million, reflecting a 3%-10% increase from the prior year [31] Other Important Information - A restatement of financials was completed, primarily related to previously unrecognized sales tax liabilities and revenue allocation errors, with a total revenue impact of approximately $300,000 [23] - The company is actively working with third-party tax advisors to strengthen compliance processes and controls [24] Q&A Session Summary Question: Can you speak about the anticipated selling cycle for inbound interests? - Management noted that the selling cycle has been stretched due to industry shock but is starting to improve as the market stabilizes [35] Question: What can be expected for adjusted EBITDA in 2026? - Management refrained from providing specific guidance but indicated that incremental revenue would likely drop around 50% to the EBITDA line [37] Question: How should growth rates be expected to trend after Q1? - Management expects the rest of the year to be better than Q1, but it is premature to break it down by quarter [41] Question: What is the current state of the commercial organization? - The internal sales force is being expanded, and the company is working with larger resellers, which could significantly enhance sales potential [43][44] Question: What updates are there on the new manufacturing line for applicators? - Management reported delays in qualifying the mold for the new manufacturing line but is hopeful for progress in the coming months [58]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 reached $10.2 million, a 42% increase compared to $7.2 million in Q2 2024, aligning with previous guidance of 40% to 50% growth [14][5] - Gross margin improved to 78.3% from 73.2% year-over-year, reflecting reduced production costs and strategic pricing [14][16] - Operating income was $1.9 million, slightly down by $100,000 from the previous year, while net income decreased to $1.1 million from $6.6 million due to lower non-cash gains [15][16] Business Line Data and Key Metrics Changes - Sold 116 Ultramist systems in Q2, marking a 61% increase year-over-year and an 18% increase from Q1 [5] - Applicator revenue constituted $6.4 million, representing 63% of overall revenues, with a 37% year-over-year growth [6][14] - Customer concentration decreased, with only one customer exceeding 5% of revenues [6] Market Data and Key Metrics Changes - The company is focusing on expanding awareness and adoption of Ultramist, particularly in wound care centers, nursing homes, and hospitals [11][33] - There is a noted increase in inbound inquiries, indicating a potential adoption threshold has been crossed [10][11] Company Strategy and Development Direction - The company is transitioning to a new applicator design aimed at increasing production capacity and reducing costs, expected to impact margins positively in early 2026 [7][26] - A concerted outbound marketing campaign is planned for October, targeting specific wound types and customer segments [10][33] - The company is also enhancing its sales infrastructure, having fully staffed its national sales territories for the first time [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's progress and the potential for sustainable, profitable growth [13][17] - The company is cautious about Q3 guidance due to tough comparisons from the previous year but remains focused on disciplined execution [18][19] Other Important Information - The company is moving to a new office space to accommodate growth, indicating operational expansion [20] - The company holds a significant patent portfolio, which is seen as a core asset for future growth and potential monetization opportunities [51] Q&A Session Summary Question: Impact of new production process on gross margin - Management expects to gain 350 to 400 basis points of additional margin from the new applicator design, with gradual impact starting in early 2026 [24][26] Question: Sales team adequacy - Management feels confident in the current sales team but is open to adding more representatives as needed [29][31] Question: Marketing program focus - The marketing program will target specific wound types and customer segments, aiming to build trust and awareness in the market [33] Question: Update on senior secured debt - The company is in the process of refinancing its debt and has received attractive term sheets, indicating a significant improvement over current terms [37][38] Question: Pipeline for large accounts - Management highlighted recent additions to the approved vendor list of a large hospital chain, indicating potential for significant sales growth [44][45] Question: Value of patent portfolio - The company has a large patent portfolio related to Shockwave and ultrasound technologies, which is seen as a core asset for operations and potential monetization [50][51]

Financial Data and Key Metrics Changes - Revenue for the first quarter increased by 67% compared to the same period in the prior year, reaching $18.5 million [6][25] - Gross profit margin for the first quarter was 84.7%, down from 86.4% in the same period of 2024 [26] - Net loss for the first quarter was $13.9 million, improving from a net loss of $18.7 million in the same period in 2024 [30] Business Line Data and Key Metrics Changes - The launch of ReCell Go Mini and Co Helix is expected to significantly contribute to revenue growth throughout 2025 [25][32] - The commercial lineup now includes ReCell, ReCell Go, ReCell Go Mini, Co Helix, and Permeoderm, providing a broad spectrum of products for both burn and trauma centers [14][15] Market Data and Key Metrics Changes - The US addressable market for the company has expanded from approximately $500 million to over $3.5 billion annually, marking a seven-fold increase [6][22] - The trauma market is estimated to have approximately 270,000 cases annually in the US, which ReCell Go Mini targets [10] Company Strategy and Development Direction - The company is focusing on acute wound care, stepping back from further commercial investment in the vitiligo indication due to uncertainty in reimbursement [21][56] - A significant shift in the commercial model has been implemented, transitioning from a service-oriented approach to a more focused selling-oriented approach [16][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the potential for strong results driven by the expanded product portfolio and operational efficiencies [22][32] - The company expects to generate free cash flow in the second half of the year and achieve GAAP profitability in Q4 of 2025 [31][32] Other Important Information - The company has secured a waiver for its first-quarter trailing twelve-month revenue covenant with OrbiMed, which had been set at $73 million [31] - The annual meeting of stockholders is scheduled for June 4 [32] Q&A Session Summary Question: Can you share any response or performance impressions of Co Helix? - Management noted that early feedback has been positive, with a case from Ohio State demonstrating a seven-day graft readiness, which is faster than other dermal matrices [36][37] Question: How is the rollout of ReCell Go Mini going? - The response has been good, particularly from existing accounts in the trauma area, with opportunities to provide more value to trauma surgeons [41][42] Question: What are the expected revenue contributions from the new launches? - Management indicated that while they are not ready to provide specific guidance, they expect these products to be material contributors to revenue [45] Question: Is the sales force adequately staffed to meet revenue targets? - Management expressed confidence in the current staffing levels and the reconfigured sales model, which focuses on a selling-oriented approach [47][49] Question: What is the expected revenue cadence for the rest of the year? - Management anticipates steady sequential growth throughout the year, with some weighting towards the back end as new products gain traction [51][52] Question: What is the current status of the vitiligo initiative? - The company has paused spending on vitiligo due to uncertainty in reimbursement and is focusing resources on acute wound care instead [56][58]