Financial Data and Key Metrics Changes - Total revenue for the first quarter of 2025 was $17,500,000, reflecting a 9% decrease compared to the same period in the prior year [19][21] - Surgical glaucoma revenue was $17,100,000, a decrease of 6% year-over-year, primarily due to a 10% decrease in account utilization [20][21] - Dry eye revenue was $400,000, down from $1,000,000 in the same period last year, attributed to fewer SmartLids sales following a price increase [21][16] - Gross margin for the first quarter was 86%, unchanged from the prior year [21] - Net loss for the quarter was $14,200,000, or $0.28 per share, compared to a net loss of $16,300,000, or $0.33 per share, in the prior year [22] Business Line Data and Key Metrics Changes - Surgical glaucoma segment showed a slight decline in sequential ordering accounts, with a 3% increase year-over-year despite new Medicare restrictions [20][10] - The dry eye segment's revenue reflects ongoing efforts in market access and new pricing strategies [16][21] Market Data and Key Metrics Changes - The MIGS market is experiencing changes due to new Medicare coverage restrictions, limiting the number of MIGS procedures performed during cataract surgery [9][10] - The company is actively engaging with surgeons to adapt to the new environment and optimize commercial strategies [10][31] Company Strategy and Development Direction - The company is focused on addressing unmet medical needs in glaucoma and dry eye markets through innovative interventional technologies [7][15] - Strategic initiatives include building commercial momentum in MIGS, establishing equitable reimbursement for tier care, and advancing the product pipeline [7][15] - Plans to expand manufacturing operations outside of China to mitigate tariff impacts are underway [8][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued demand for glaucoma treatments and the company's ability to adapt to the new MIGS environment [10][9] - The company reaffirmed its revenue guidance for 2025, expecting total revenue of approximately $70,000,000 to $75,000,000 [23][24] - Management highlighted the importance of ongoing conversations with payers regarding reimbursement for tier care procedures [45][46] Other Important Information - The company has not yet received any monetary damages from a patent infringement case against Alcon, awaiting final rulings [22] - Adjusted operating expenses for the first quarter were $24,700,000, a decrease of 7% compared to the prior year [22][26] Q&A Session Summary Question: Can you discuss trends in surgical glaucoma and share dynamics? - Management noted a decline in actual utilization but emphasized the continued growth in patient encounters and the effectiveness of the Omni product [30][31] Question: Are there efforts to reverse the stacking component of the LCDs? - Management acknowledged multiple efforts to collect clinical data supporting the need for multiple MIGS procedures [36] Question: What are the reimbursement dynamics for Omni versus competitive MIGS devices? - The reimbursement dynamics remain largely unchanged, with most procedures historically performed as single MIGS [43] Question: Any updates on tier care reimbursement? - No coverage determinations have been made yet, but management is optimistic about future decisions [45][46] Question: Can you provide insights on the Scion product? - Scion is a complementary product with modest revenue contribution, primarily serving surgeons looking for simpler procedures [49][50] Question: What is the outlook for device intensive qualification? - Management expressed strong conviction that the device should qualify for device intensive but refrained from speculation [58] Question: How is the company addressing competitive launches? - Management remains confident in Omni's market position and is actively monitoring competitive dynamics [88]

Financial Data and Key Metrics Changes - Total revenue for the first quarter of 2025 was $17.5 million, reflecting a 9% decrease compared to the same period in the prior year [20] - Surgical glaucoma revenue was $17.1 million, a decrease of 6% year-over-year, primarily due to a 10% decline in account utilization [20] - Dry eye revenue was $400,000, down from $1 million in the same period last year, attributed to fewer SmartLids sales following a price increase [21] - Gross margin for the first quarter was 86%, unchanged from the prior year [21] - Net loss for the quarter was $14.2 million, or $0.28 per share, compared to a net loss of $16.3 million, or $0.33 per share, in the first quarter of 2024 [22] Business Line Data and Key Metrics Changes - Surgical glaucoma segment showed a revenue of $17.1 million, with a slight decline in sequential ordering accounts despite new Medicare restrictions [11][20] - Dry eye segment revenue was $400,000, reflecting a focus on market access and new pricing strategies [17][21] Market Data and Key Metrics Changes - The MIGS market is experiencing changes due to new Medicare coverage restrictions, limiting the number of MIGS procedures performed during cataract surgery [10][20] - The company is actively working to establish third-party manufacturing lines outside of China to mitigate tariff impacts [9][25] Company Strategy and Development Direction - The company aims to build commercial momentum in the MIGS market through customer education, equitable reimbursement, and new clinical data [8][16] - Focus on advancing the product pipeline, including the recent launch of the next-generation OmniEdge [13][15] - The long-term strategy includes pioneering interventional procedures for moderate to severe meibomian gland disease (MGD) in the dry eye market [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for glaucoma treatment and the ability to adapt to the new MIGS environment [11][20] - The company reaffirmed its revenue guidance for 2025, expecting total revenue of approximately $70 million to $75 million [23][24] - Management is optimistic about the potential for reimbursement coverage decisions for tier care procedures in 2025 [44][68] Other Important Information - The company is awaiting a final ruling on a patent infringement case against Alcon, which could impact future financials [22] - Adjusted operating expenses for 2025 are expected to be between $101 million and $105 million, reflecting a focus on fiscal discipline [26] Q&A Session Summary Question: Trends in surgical glaucoma and share dynamics - Management noted a decline in actual utilization due to new Medicare restrictions but emphasized the continued reliance on the Omni product for its comprehensive efficacy [30][31] Question: Efforts to reverse the stacking component of LCDs and competition - Management acknowledged ongoing efforts to collect clinical data supporting multiple MIGS procedures and discussed competitive dynamics in the MIGS market [34][35][39] Question: Reimbursement mechanics for Omni versus competitors - Management indicated that reimbursement dynamics remain largely unchanged, with the majority of procedures still performed as single MIGS [42] Question: Update on tier care reimbursement - Management confirmed no coverage determinations have been made yet but expressed optimism about ongoing discussions with payers [44][45][68] Question: Scion product performance and revenue contribution - Management stated that Scion is a modest portion of total revenue, primarily serving as a complementary product to Omni [48][49] Question: Tariff impact and mitigation strategies - Management expects minor impacts to gross margin in 2026 as new manufacturing locations are phased in [52][53] Question: Outlook for device intensive qualification - Management refrained from speculating on device intensive qualification but expressed strong conviction that the device should qualify based on procedure costs [57] Question: Revenue cadence and pricing strategy - Management expects sequential revenue growth in the second quarter, with a typical seasonal pattern throughout the year [60][80]