Financial Data and Key Metrics Changes - Sonera Surgical segment delivered net revenue of $23.4 million, representing a 26% year-over-year growth, driven primarily by a 28% increase in sales of soft tissue repair products to $20.5 million [5][6] - Gross profit increased by $5 million or 30% to $21.6 million, with gross margin rising approximately 240 basis points to 92% of net revenue [21][22] - Net loss for the first quarter was $3.5 million or $0.41 per diluted share, compared to a net loss of $1.8 million or $0.21 per diluted share last year [23][24] - Adjusted EBITDA for the first quarter was $700,000, an increase of 111% year-over-year [24] Business Line Data and Key Metrics Changes - In the Tissue Health Plus segment, the company continues to invest in developing a value-based wound care strategy, preparing to launch a pilot program with a wound care provider later in the second quarter [6][20] - The Synera Surgical segment generated operating income of $800,000 in the first quarter, an increase of $1 million year-over-year [22][24] - Tissue Health Plus segment generated a net loss of $2.9 million compared to a net loss of $1.4 million last year [24] Market Data and Key Metrics Changes - The company expanded its distributor network to over 400 partners, up from over 250 in the first quarter of 2024, enhancing sales coverage in key markets across the US [10][11] - Products were sold in over 1,300 healthcare facilities, compared to over 1,080 facilities in the prior year period [11][12] Company Strategy and Development Direction - The company is focused on three commercial initiatives: advancing distributor relationships, selling into new healthcare facilities, and increasing penetration in existing facilities [10][12] - The company aims to onboard and train additional distributor representatives to increase sales within existing distributor relationships [14][15] - The company is also pursuing financial partners to invest in the execution of its Tissue Health Plus strategy [7][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong start to 2025 and remains focused on delivering net revenue growth, particularly in the Synera Surgical segment [26] - The company does not anticipate a material impact from tariffs on its operations in 2025, as most products are manufactured in the US [27] Other Important Information - The company amended the terms of its debt facility to provide increased financial flexibility [8] - The THP CoPilot software platform was released, designed to standardize wound care and reduce administrative burdens for clinicians [17][18] Q&A Session Summary Question: Can you provide more insight into penetration rates and strategies for improvement? - Management indicated a coupled approach between territory managers and distributor expansion to penetrate existing accounts deeper [30][31] Question: Are there any reorder rates available for the products? - Management noted that while specific reorder rates are not disclosed, once surgeons gain comfort with the products, they tend to continue using them for more procedures [32] Question: How should gross margin be viewed for the remainder of 2025? - Management suggested that while there may not be significant additional leverage on gross margin, consistency in modeling is advisable [36][37] Question: What metrics will define success for the initial pilot program in Tissue Health Plus? - Success will be measured through clinician adherence to protocols, reduction in post-encounter time, staff productivity, and user satisfaction metrics [41][44]