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]