Financial Data and Key Metrics Changes - Revenue for Q3 2023 totaled $5 million, an increase of 19% compared to $4.2 million for the same period in 2022, falling within the guidance range of 15% to 25% [11] - Gross margin for Q3 2023 was 71%, slightly down from 72% in the same period last year [11][12] - Operating loss for Q3 2023 was $500,000, an improvement of $2 million compared to the same period last year [12] - Net loss for Q3 2023 was $23.7 million, compared to a net loss of $1.1 million for the same period in 2022, primarily due to noncash losses on derivative liabilities [13] Business Line Data and Key Metrics Changes - 55 UltraMist units were sold in Q3 2023, with over 40% of those sales to new customers [17] - Ultramist revenues grew over 25% year-on-year in Q3 2023, with consumables revenue growing 11% from Q2 and 24% compared to Q3 2022 [22] - Consumables for Ultramist constituted 62% of overall revenues in the quarter [22] Market Data and Key Metrics Changes - The company ended Q3 2023 with 581 active systems in the field, up from 526 at the end of Q2 [22] - The company is focusing on engaging new customers, particularly in busy practices with high utilization rates [21] Company Strategy and Development Direction - The company is developing a new business model allowing customers to bundle payments for UltraMist into a monthly operating cost, which is expected to generate predictable recurring revenue [7][9] - The company aims to increase production capacity for systems to two to three times the 2023 levels in 2024 [39] - The merger with Sweat Equity Partners is anticipated to enhance capital and capabilities, with plans to move to NASDAQ [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about eliminating production constraints and achieving a stable manufacturing cadence of double-digit rates per week [5] - The company anticipates revenue growth in the range of 15% to 25% for Q4 2023, with no significant production capacity constraints expected [25] Other Important Information - The company closed an additional financing round in July 2023, raising approximately $3 million to support operations [13] - Management emphasized the importance of pricing discipline and the positive market response to it [18] Q&A Session Summary Question: What is the state of dermaPACE and its future? - Management indicated that dermaPACE was slow in Q3 and is currently assessing its direction, focusing on international channels and potential long-term studies for reimbursement [28][30] Question: Update on merger approval and potential hurdles? - Management stated that they filed an amended S-4 and are awaiting SEC comments, with a good chance of closing the deal this year [32][34] Question: Capacity for devices and applicators going forward? - Management confirmed that production capacity has reached a double-digit cadence weekly and plans to significantly increase capacity in 2024, including redesigning applicators for better manufacturability [39][40]