Financial Data and Key Metrics Changes - The company reported record revenue of $7.4 million for Q2 2025, representing a 20% increase year-over-year and a 10% sequential increase [7][19] - Gross margins remained strong at 87%, slightly up from 86% in the previous year [7][20] - GAAP net loss was $3.7 million, or a loss of $0.44 per share, compared to a net loss of $2.7 million, or $0.38 per share, in the previous year [21][22] - Cash balance as of June 30, 2025, was approximately $7.4 million, down from $12.2 million at the end of 2024 [22][23] Business Line Data and Key Metrics Changes - Revenue from the VA hospital system grew 12% sequentially, reaching $5.3 million in Q2 2025 [8][19] - Direct-to-consumer brand TRUVEGA posted $1 million in sales for Q2, a 74% year-over-year growth but a sequential decline [10][19] - The U.S. prescription channel recorded revenue of $394,000, down 17% year-over-year [13][19] Market Data and Key Metrics Changes - Revenue from outside the U.S. was $465,000 for the quarter, down 9% from the same period last year [14][19] - The total addressable market within the VA channel is significant, with estimates of 600,000 patients treated for headaches [8][9] Company Strategy and Development Direction - The company is transitioning from a single product focus to a broader bioelectronic technology company, with plans to invest in growth and long-term value creation [5][12] - The integration of the recently acquired Neurometrics has been completed ahead of schedule, and the company is focusing on expanding its product offerings [6][25] - The company plans to increase marketing and promotional investments in the TRUVEGA platform to drive growth in 2026 and beyond [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the VA channel and the direct-to-consumer market, despite delays in profitability due to increased spending [25][29] - The company expects to need $11.5 million to $12 million in quarterly revenue to achieve cash positivity, significantly higher than the current revenue levels [18][19] - Management highlighted the importance of gross profit margins, which could lead to improved operating margins once sufficient revenue is generated [19][25] Other Important Information - The company entered into a term debt facility with Avenue Capital, providing approximately $7.2 million in additional net cash [14][23] - The company is facing patent infringement issues with a competitor, which has led to legal expenses [11][36] Q&A Session Summary Question: Insights into TRUVEGA revenue composition - The $500 TRUVEGA Plus accounts for about 80% of revenue in the category, while the $350 version lags behind [35] Question: Legal actions regarding patent infringement - Cross complaints have been filed in federal court, but no further comments were made beyond public filings [36] Question: New product expectations - The prescription Quell Fibromyalgia product line is now operational, expected to generate material revenue in the latter half of the year [38][39] Question: Annualized marketing spend increase - Marketing spend is expected to increase by 5% to 6% in line with revenue growth [42][43] Question: Decision to ramp up spending and delay profitability - The decision was influenced by restructuring the sales force and positive trends in direct-to-consumer business [48][49] Question: Contribution of Amazon sales - The company is still resolving issues related to order fulfillment from Amazon [48] Question: Return on advertising spend - The media efficiency ratio was 2.0, indicating $2 of revenue generated for every $1 spent on advertising [57] Question: Integration with Apple Health - The integration allows access to a larger biohacker ecosystem, with potential use cases being explored [59]