Financial Data and Key Metrics Changes - In Q3 2025, the company achieved net revenue of $26.3 million, representing a 22% year-over-year growth, primarily driven by sales of soft tissue repair products [11][12] - Gross profit increased by $4.8 million, or 24%, to $24.5 million, with gross margin rising approximately 200 basis points to 93% of net revenue [21][22] - Net income from continuing operations was $800,000, or $0.09 per diluted share, compared to a net loss of $200,000, or $0.02 per diluted share in the previous year [23] Business Line Data and Key Metrics Changes - Sales of soft tissue repair products increased by 24% year-over-year to $23.4 million, significantly contributing to overall revenue growth [11][12] - The company expanded its network of independent distributors from over 300 to more than 400 in the last 12 months, enhancing its market reach [13][14] Market Data and Key Metrics Changes - The company sold products into more than 1,400 healthcare facilities over the last 12 months, up from over 1,200 in the prior year, indicating a significant expansion in customer base [14] - The products are approved or contracted for sale in over 4,000 facilities, suggesting substantial future growth potential [15] Company Strategy and Development Direction - The company announced the discontinuation of the Tissue Health Plus (THP) segment to focus resources on its core surgical business, aiming to enhance operational efficiency and long-term growth [9][10][11] - The strategic realignment is intended to capitalize on strengths in the surgical market and improve clinical outcomes while reducing healthcare expenditures [11][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve strong revenue growth and profitability, emphasizing the effectiveness of their commercial strategy and the potential for further market penetration [26][27] - The company anticipates total cash investment related to THP will range from $5.5 million to $6.5 million in the second half of 2025, with no material cash spend expected after 2025 [10][25] Other Important Information - The company has made progress in expanding its portfolio of clinical evidence, with two studies published in peer-reviewed journals highlighting the efficacy of CellerateRX Surgical in complex surgical procedures [16][17] - The partnership with Biomimetic Innovations Limited for the OSTIC product is progressing well, with expectations for a U.S. commercial launch in Q1 2027 [18][19] Q&A Session Summary Question: Can you elaborate on initiatives to drive further penetration within existing facilities? - Management highlighted efforts to expand into new specialties and the importance of scientific and clinical evidence in supporting product value [28][29] Question: Should we expect cash savings outside of THP and leverage on sales and marketing? - Management indicated that the current model is working well, with flat headcount and evidence of operating leverage on the EBITDA line [30][31] Question: What are the expectations for growth and margins going forward? - Management expressed confidence in strong performance for the upcoming quarter, despite a significant growth quarter in the previous year [32][33] Question: Why was a strategic partner not considered earlier for THP? - Management explained that the pursuit of a strategic partner began in early 2024, but ultimately did not yield results, leading to the decision to discontinue THP [34][35] Question: What is the trend of total operating expenses following the discontinuation of THP? - Management refrained from providing forward-looking guidance but suggested that historical data could help model future trends [36]