Financial Data and Key Metrics Changes - Total revenue for the first quarter of 2025 was $13.6 million, down $3.8 million or 22% year over year, primarily due to delays in system sales and distributor ordering patterns [11][12] - Gross profit decreased by $2.9 million or 25% to $8.8 million, with gross margin at 64.2% compared to 66.6% in the same quarter of the previous year [13][14] - Net loss attributable to stockholders was $12.4 million or $17.44 per share, compared to a net loss of $9.8 million or $16.91 per share in the first quarter of 2024 [15] Business Line Data and Key Metrics Changes - Systems revenue saw a 25% decrease, with a 25% decline in lease systems revenue as well [12][14] - Cash system sales in the U.S. represented 80% of total U.S. system sales, up from 75% the previous year, indicating a strategic shift towards higher quality cash revenues [6][7] Market Data and Key Metrics Changes - International revenue decreased by 29%, while U.S. revenue declined by 16.5% year over year, reflecting challenges in both domestic and international markets [12] - The global capital equipment environment remains uncertain, affecting customer financing and system adoption [5][9] Company Strategy and Development Direction - The company is focusing on transitioning to higher quality cash revenues and enhancing its long-term profitability profile [6][7] - Plans to launch a next-generation body contouring device in the second half of 2025, developed based on customer feedback [30][31] - The company is managing cash burn through disciplined cost management and targeted investments [9] Management's Comments on Operating Environment and Future Outlook - Management noted that economic uncertainty and higher interest rates are impacting customer purchasing patterns, leading to delays in closing deals [5][26] - The company does not provide full-year 2025 financial guidance but expects sequential revenue growth in the second quarter [18] Other Important Information - The company improved its balance sheet by converting $11 million of debt to equity and secured a new bridge loan amendment [10][17] - Total debt obligations decreased from approximately $39.7 million to $35.5 million [17] Q&A Session Summary Question: Impact of tariffs on international business - Management indicated that a 10% tariff on products sourced from Israel could impact gross margins by 11.5% in 2025 and 22.5% in 2026, but the overall impact is expected to be modest and manageable through pricing [22][23][25] Question: Delays in sales contracts - Delays in closing contracts were attributed to economic conditions affecting both U.S. sales and international distributor orders, with many deals pushed into the second quarter [26][28] Question: Update on next-gen body contouring device - The launch of the next-gen body contouring device is expected in early second half of 2025, with significant market uptake anticipated based on customer excitement [30][31]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $15.8 million, down $2.4 million or 13% year-over-year, primarily due to a mid-teens decline in systems revenue and a mid-single-digit decline in procedure-related products and service revenue [6][24] - Lease revenue declined by $3.5 million or 58% year-over-year in Q4, offsetting mid-teens growth in cash system sales [7][24] - Cash system sales in the U.S. increased 27% year-over-year, representing 87% of total U.S. system sales in Q4 compared to 58% last year [8][10] - Gross profit decreased by $1.2 million or 10% to $10.9 million, with gross margin improving to 69.1% from 66.5% year-over-year [29] Business Line Data and Key Metrics Changes - Systems revenue from internal lease programs decreased to approximately 20% in Q4 2024 from 41% in the prior year, reflecting a strategic shift towards cash sales [25] - Cash systems revenue and sales of products and services increased by 10% year-over-year in Q4 [24][25] - The company achieved a 14% reduction in cash used in operations year-over-year in 2024, indicating progress in operational efficiency [15] Market Data and Key Metrics Changes - The decline in global systems adoption was attributed to macroeconomic headwinds, including customer financing pressures and economic uncertainty [9][10] - Sales through distributors more than doubled year-over-year in Q4, particularly in the APAC and EMEA regions [12] Company Strategy and Development Direction - The company is focused on transitioning to higher quality cash revenues and has made significant progress in restructuring its debt obligations, reducing total debt from $74.9 million to approximately $39.7 million [17][20] - The strategic initiatives include cost reductions, shifting to cash sales, and working capital management, which are expected to enhance long-term profitability [14][15] - The company plans to launch a new body device in the second half of 2025, which is anticipated to drive growth [54] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that while the strategic transition is largely complete, macroeconomic challenges will continue to impact quarterly performance [14][36] - The company is not providing full-year 2025 financial guidance but expects total revenue for Q1 2025 to be at least $14 million [36] Other Important Information - A 1 for 11 reverse stock split was announced, with the company's common stock trading on an adjusted basis starting March 4, 2025 [21] - The company secured an amendment to its bridge loan agreement, increasing financing capacity by $10 million [22][34] Q&A Session Summary Question: Can you characterize the expected normalized business profile going forward? - Management indicated that while predicting the macroeconomic environment is challenging, they expect performance to improve compared to 2024, with less decline anticipated [40][42] Question: How is the Venus Hair business performing? - Management expressed satisfaction with the performance of the Venus Hair business, particularly the Venus ARTAS Robot, and noted ongoing R&D innovations [44][46] Question: What is the strategy for top-line growth in 2025? - The focus will be on establishing a normal rhythm of orders with new distribution partners internationally and launching a new body system in the U.S. [52][54] Question: Are there further cost-cutting measures available? - Management stated that the infrastructure is efficient, and the focus is on increasing sales rather than further cost reductions [56][58] Question: How do tariffs affect the business? - Products are manufactured in both the U.S. and Israel, with no substantial near-term impact expected from tariffs at this time [60]