Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $8.3 million, down from $10.7 million in Q1 2024, primarily due to lower unit sales to the largest customer [12] - Gross profit for Q1 2025 was $4.4 million, resulting in a gross margin of 52% [12] - The company reported a net loss of $2.6 million or a loss of $0.16 per share compared to net income of $2.3 million or $0.14 per diluted share in the prior year [16] Business Line Data and Key Metrics Changes - The company shipped 21 SRT systems in Q1 2025, bringing the total installed base to over 880 systems [4][5] - A 65% increase in patient treatments from fair deal agreement installations was noted when comparing Q1 volumes with Q4 [7] Market Data and Key Metrics Changes - The company expects to surpass 900 systems by the end of Q2 2025 and aims to reach 1,000 units under direct sale within the next twelve months [5] - The fair deal agreement program is anticipated to contribute significantly to revenue in the second half of 2025 [9] Company Strategy and Development Direction - The company is focusing on expanding its fair deal agreement initiative, which aligns financial interests with patient volume and practice utilization [8] - There is an ongoing strategy to enhance international presence and product innovation, particularly with the transdermal infusion system [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to profitability in each of the next three quarters and for the full year [5][17] - The company is confident in the trajectory for the remainder of 2025, particularly as FDA agreements begin to contribute to revenue [65] Other Important Information - Operating expenses increased significantly due to strategic growth initiatives, with general and administrative expenses rising to $2.2 million from $1.6 million a year ago [13] - Research and development expenses increased to $2.6 million from $0.9 million in the prior year, reflecting continued investment in product innovation [15] Q&A Session Summary Question: How does the first quarter of 2025 compare to the first quarter of 2024? - Management expects each subsequent quarter to be profitable, driven by revenues from fair deal agreements and product sales [20] Question: Did any part of the first quarter revenue come from the fair deal agreement? - Yes, but it was not large enough to significantly impact overall revenue [21][22] Question: Has the existing U.S. tariff policy affected business confidence? - So far, there have been no observed tariff repercussions on any of the businesses [24] Question: What is the anticipated volume once fair deal agreements reach full capacity? - Revenue generation typically begins four to five months after signing the agreement, with significant revenue contributions expected in the second half of 2025 [28][34] Question: What support will be provided to clinics to reach mature utilization rates? - The company plans to provide analytics and marketing support to help clinics identify and access patients [44] Question: What is the current installed base and target goal by the end of 2025? - The company is not providing specific guidance on the target goal but is moving along aggressively with existing installations [43] Question: What is the timeline for receiving payments after treatments? - Payments are typically received between 45 and 60 days after treatments occur [52]