Financial Data and Key Metrics Changes - Total revenue for Q3 2025 increased by 12% to $12.9 million compared to $11.5 million in the same period last year [5][16] - Gross profit for Q3 2025 increased to $8.3 million, with a gross profit margin of 64.4%, up from 60.5% in the prior year [17][19] - Net loss attributable to stockholders decreased to $2 million, or $0.05 per share, compared to $4.7 million, or $0.14 per share in the prior year [19] - Cash used in operating activities decreased to $3.5 million for Q3 2025, down from $4.4 million in the prior year [20] Business Line Data and Key Metrics Changes - Revenue from the surgical aesthetics segment increased by 19% to $11.1 million compared to $9.3 million last year, driven by the commercial launch of the Aon body contouring system [5][16] - OEM revenue decreased by 18% to $1.8 million for Q3 2025, down from $2.2 million in the same period last year, due to reduced sales volumes to existing customers [7][17] Market Data and Key Metrics Changes - Domestic revenue increased by 20% year-over-year to $9.3 million, while international revenue decreased by 4% year-over-year to $3.5 million [17] - The company noted that the medical device industry typically experiences seasonality, with revenue trends generally lowest in the first and third quarters [17] Company Strategy and Development Direction - The company announced a rebranding of its advanced energy segment to "surgical aesthetics" to better align with its mission and the results delivered by its products [5] - The Aon body contouring system is positioned as a groundbreaking solution in the market, integrating multiple functions to enhance surgical outcomes [9][10] - The company is focusing resources on the surgical aesthetics segment, particularly the Aon launch, which is seen as the future of the company [7][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market's response to the Aon system, highlighting strong pre-sales and initial deliveries [6][14] - The company anticipates continued growth driven by the increasing adoption of GLP-1 medications, which create a demand for body contouring solutions [12][34] - Management updated revenue guidance for 2025 to a range of $50.5 million to $52.5 million, reflecting the strength of the Aon launch [21][22] Other Important Information - The company has successfully reduced operating expenses to $9.1 million for Q3 2025, down from $10.6 million in the prior year, due to cost-cutting measures [18] - Cash and cash equivalents as of September 30, 2025, were $25.1 million, down from $31.7 million as of December 31, 2024 [21] Q&A Session Summary Question: Clarification on generator sales decline - Management explained that the decline in generator sales is due to the integration of existing generators with the new Aon system, which is classified as Aon sales [25][26] Question: Gross margin impact and future expectations - Management refrained from providing specific guidance on gross margins but indicated that the surgical aesthetics business typically has the highest gross margins [27][29] Question: Expected uptake in consumables alongside capital sales - Management noted that new customers adopting Renuvion technology would drive consumable sales, while existing customers may not see significant increases [32] Question: Market demand trends and GLP-1 dynamics - Management confirmed that the market is being disrupted by GLP-1 drugs, with a significant percentage of patients being new to aesthetics, indicating a growing opportunity [34][35] Question: Pipeline growth and implementation - Management acknowledged an increase in guidance due to strong interest in Aon and confirmed that a third party is assisting with installations to meet demand [45][46] Question: International rollout plans for Aon - Management indicated that while the focus is currently on the U.S. market, there are plans to register Aon in various international markets, including Europe and Latin America [48][49]