Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $9.4 million, a decrease of 8% compared to $10.2 million in the same period last year [4] - Advanced Energy products revenue increased by 6% to $7.9 million, reflecting stronger sales trends in the U.S. [5] - OEM segment sales decreased by 44.7% to approximately $1.2 million [16] - Gross profit for Q1 2025 decreased to $5.7 million from $5.9 million in the prior year, but gross profit margin increased to 60.1% from 58.1% [16][17] - Net loss attributable to shareholders was $4.2 million or $0.10 per share, compared to $7.6 million or $0.22 per share in the prior year [18] Business Line Data and Key Metrics Changes - Advanced Energy segment revenue increased by 5.8% to $7.9 million due to increased volume of single-use handpieces and domestic sales of new generators [15] - OEM segment sales saw a significant decline of 44.7% due to decreased sales volume to existing customers [16] - Domestic revenue decreased by 3.4% year over year to $6.7 million, while international revenue decreased by 17.7% to $2.7 million [16] Market Data and Key Metrics Changes - The company noted a stabilization in demand for capital equipment in the U.S., with year-over-year increases for two consecutive quarters [5] - The growth of GLP-1 drugs is expected to drive demand for aesthetic treatments, particularly for patients experiencing loose skin due to rapid weight loss [8] Company Strategy and Development Direction - The company is focusing on the launch of the AON body contouring platform, which integrates multiple technologies into a single device [13] - Apyx Medical aims to position the AON system in the operating rooms of surgeons, enhancing its market share in aesthetic surgery [14] - The company is committed to maintaining expense control while supporting the AON launch, viewing it as a significant differentiator in the market [33] Management's Comments on Operating Environment and Future Outlook - Management acknowledged persistent macroeconomic headwinds affecting the global aesthetic space but remains optimistic about the growth potential driven by GLP-1s [7][8] - The company expects to return to more normalized cash burn for the remainder of 2025, projecting cash management will yield positive results into 2027 [19] - Revenue guidance for 2025 is set between $47.6 million and $49 million, with expectations for Advanced Energy revenue to increase [20] Other Important Information - Renuvion was awarded the 2025 New Beauty Award for Best Minimally Invasive Skin Tightener, highlighting its market position [11] - The company has implemented significant cost-cutting measures and a restructuring program to reduce cash burn and improve operational efficiency [6] Q&A Session Summary Question: Progress on AON platform and customer enrollment - Management indicated they are not ready to comment on the AON pipeline yet but noted excitement in the marketplace regarding upgrades to the APYX-ONE console [22][23] Question: Demand for APYX-ONE upgrades - Management confirmed they are seeing positive demand for upgrades to the APYX-ONE console as customers prepare for AON [24][25] Question: Tariff impacts on margins - Management stated they expect gross margins to remain around 60% for the year, indicating minimal impact from tariffs at this point [32] Question: Investments to support AON launch - Management emphasized that while controlling expenses is crucial, investments to support the AON launch will not be compromised [33]