Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $2.1 million, with six systems sold and a strong average selling price [6][16] - Gross profit for Q1 2025 was $900,000, resulting in a gross margin of 41.3%, a 20 basis point improvement year-over-year [18] - Net loss for Q1 2025 was $9.4 million, or $0.12 per share, compared to a net loss of $9.8 million, or $0.14 per share, in the same period last year [19] - Cash burn for Q1 2025 was $4.6 million, with a total cash balance of $33.1 million as of March 31, 2025 [19][23] - Full year 2025 revenue growth is expected to be in the range of 10% to 20% over 2024, with gross margin outlook updated to 47% to 50% [21][22] Business Line Data and Key Metrics Changes - The company sold six units in Q1 2025, with a strong average selling price, but faced longer deal cycles and lost several deals due to grant funding cancellations [16][19] - The focus is shifting towards diversified revenue across hospitals, office settings, and international markets, with plans to launch the office business in mid-2025 [7][12] Market Data and Key Metrics Changes - The company is experiencing headwinds in revenue due to a new political environment affecting large academic institutions funded by grants [6][19] - There is strong interest and demand in international markets, particularly in Europe, the Middle East, and Asia, with anticipated regulatory approval in India in the second half of 2025 [14][15] Company Strategy and Development Direction - The strategy focuses on site of care expansion, building an office business, and driving adoption in international markets [11][12] - The company aims to enhance its financial profile by reducing cash burn and transitioning from a development stage to a commercial stage company [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future growth trajectory, particularly with the launch of new AI-powered technology and expansion into office settings [8][15] - The management acknowledged the challenges posed by longer sales cycles in the hospital sector and the impact of grant funding on revenue [19][43] Other Important Information - The company completed a reorganization to reduce cash burn and strengthen its balance sheet, raising $6 million through a registered direct offering [6][23] - Management is closely monitoring the impact of tariffs but currently does not anticipate any material effects on business operations [24][56] Q&A Session Summary Question: Initial feedback on pilot activity in the office setting - Management reported positive feedback from pilot accounts, with successful accreditation and enthusiasm from participating neurologists [30] Question: Recovery of lost business due to grant funding - Management does not expect grant funding to return and is focusing on deals that do not rely on such funding [33] Question: Update on international distributor receptivity - There is strong interest from international distributors, with ongoing efforts to establish centers of excellence and networks of users [35] Question: Changes in second half guidance - Adjustments to guidance were made due to lost revenue from grant funding, but growth catalysts remain in place for the second half [41][42] Question: Economics of selling in the office versus hospital settings - The implementation process differs significantly between office and hospital settings, with flexible payment models being explored for office sales [48][50] Question: Current visibility for the first half of 2025 - The pipeline is robust, with expectations for a significant ramp in business between the first and second halves of 2025 [61]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $2.1 million, with a sale of six systems and a strong average selling price [5][15] - Gross profit for Q1 2025 was $900,000, resulting in a gross margin of 41.3%, a 20 basis point improvement year-over-year [17] - Net loss for Q1 2025 was $9.4 million, or $0.12 per share, compared to a net loss of $9.8 million, or $0.14 per share, in the same period last year [18] - Cash burn for Q1 2025 was $4.6 million, with total cash and cash equivalents at $33.1 million as of March 31, 2025 [18][21] - Full year 2025 revenue growth is expected to be in the range of 10% to 20% over 2024, with gross margin outlook updated to 47% to 50% [20] Business Line Data and Key Metrics Changes - The company is transitioning from a reliance on U.S. hospital deals to a diversified revenue model across hospitals, office settings, and international markets [6][14] - The office clinical study, NeuroPMR, is progressing well, with strong enthusiasm from participating sites and expected completion ahead of schedule [8][10] Market Data and Key Metrics Changes - The company is seeing strong interest and demand in international markets, particularly in Europe, the Middle East, and Asia, with anticipated regulatory approval in India in the second half of 2025 [13][14] - The sales cycle for hospital deals has lengthened, now averaging one to one and a half years [43] Company Strategy and Development Direction - The strategy focuses on site of care expansion, building an office business, and driving adoption in international markets [10][14] - The company aims to launch its office business in mid-2025, with pilot accounts already accredited and scanning [11][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future growth trajectory, particularly with the launch of new AI-powered technology and expansion into office and international markets [14][24] - The company is cautious about the impact of grant funding on future deals, indicating a shift away from reliance on such funding sources [32] Other Important Information - The company completed a reorganization to reduce cash burn and strengthen its balance sheet, extending its cash runway to the end of 2026 [21] - Management is closely monitoring the impact of tariffs but currently reports no direct effects on international transactions [22][58] Q&A Session Summary Question: Feedback on pilot activity in the office setting - Management reported positive feedback from pilot accounts, with enthusiasm for the technology and its potential to transform practices [29] Question: Impact of grant funding headwinds in Q1 - Management does not expect grant funding to return and is focusing on deals that do not rely on such funding [32] Question: Changes in second half guidance - Adjustments to guidance were made primarily due to lost revenue from grant funding, but no major changes in growth expectations for the second half [41] Question: Office expansion and economic models - Management indicated that a handful of accounts are in the pilot phase, with flexible payment models being discussed to accommodate different office sizes [45][49] Question: Current visibility for the first half of 2025 - The pipeline is robust, with expectations for a significant ramp in business in the second half of the year as new opportunities arise [61]