Financial Data and Key Metrics Changes - Net revenue for Q1 2025 was $26.6 million, a decrease from $46.5 million in Q1 2024, primarily due to a temporary payment suspension from TRICARE and slowing order growth [19] - Gross profit in Q1 2025 was $18.2 million, representing 69% of revenue, compared to $37.2 million or 80% of revenue in Q1 2024 [20] - Net loss for Q1 2025 was $10.4 million, or $0.33 per share, compared to a net income of $10,000 in the previous year [21] - Adjusted EBITDA loss for Q1 2025 was $11.8 million, compared to an adjusted EBITDA of $1.7 million in Q1 2024 [21] - The company maintained a strong balance sheet with $40 million in working capital and approximately $24 million in cash on hand [22] Business Line Data and Key Metrics Changes - Device revenue was $11.9 million, while supplies revenue was $14.7 million in Q1 2025 [19] - The percentage of non-NexWave product orders increased to 34% in Q1 2025, up from an average of 30% in the previous year [13] Market Data and Key Metrics Changes - The company is focusing on diversifying its revenue streams and expanding its sales force to drive growth in various markets, including personal injury [13][24] - The patient monitoring market is identified as a multibillion-dollar opportunity, with the upcoming Nico pulse oximeter expected to significantly improve care across diverse patient demographics [18] Company Strategy and Development Direction - The company is restructuring its business to operate without TRICARE revenue in a worst-case scenario, aiming to trim costs and refocus on new revenue opportunities [9][24] - The company plans to submit the Nico pulse oximeter to the FDA, with expectations for commercialization in 2026 [17][41] - The long-term goal is to generate revenue exceeding $800 million annually, with a focus on non-opioid pain management solutions and improved healthcare outcomes [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth prospects despite recent challenges, emphasizing the importance of high-quality service and compliance with guidelines [23] - The company anticipates a response from TRICARE regarding the payment suspension within 40 days, which could lead to increased revenue once resolved [23][32] - The company is adjusting its cost structure to return to profitability as soon as possible, with Q2 revenue estimated at $27 million and an EPS loss of $0.20 [25] Other Important Information - The company has reduced overall staff by approximately 15%, primarily in the corporate office, which is expected to result in annual savings of about $35 million [13] - The company is actively promoting other products, such as bracing, to prescribers as part of its growth strategy [10] Q&A Session Summary Question: Insights into TRICARE conversations and potential domino effects with other payers - Management indicated that TRICARE's payment suspension is temporary while they confirm compliance with guidelines, and there are no current issues with other payers [30][31] Question: Clarification on Q1 performance and guidance for 2025 - Management acknowledged multiple factors contributed to the revenue miss in Q1 and stated that guidance for the remainder of the year would be provided after gaining clarity on TRICARE [34] Question: Confirmation of revenue guidance excluding TRICARE payments - Management confirmed that Q1 revenue and Q2 guidance do not include payments from TRICARE [36] Question: Potential lump sum payments from TRICARE if the outcome is positive - Management expressed uncertainty about the payment structure but confirmed that TRICARE would reimburse claims once the suspension is lifted [37][39] Question: Plans if TRICARE outcome is negative - Management stated that they would refocus the sales force to generate revenue from other areas to compensate for potential losses from TRICARE [40] Question: Expected revenue generation from Nico post-approval - Management confirmed that Nico is expected to generate meaningful sales in 2026 following its launch [41]