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]