Financial Data and Key Metrics Changes - The company reported net revenue of $25.8 million for the second quarter, representing a 28% year-over-year growth [5] - Gross profit increased by $5.7 million or 32% to $23.9 million, with gross margin rising approximately 250 basis points to 93% of net revenue [29] - The net loss for the second quarter was $2 million or $0.23 per diluted share, compared to a net loss of $3.5 million or $0.42 per diluted share in the previous year [31] - Adjusted EBITDA for the second quarter was $2.7 million, an increase of $2.1 million or 350% year-over-year [33] Business Line Data and Key Metrics Changes - The Surgical segment generated net revenue of $25.8 million, with soft tissue product sales increasing 28% year-over-year to $22.7 million [5][6] - Bone Fusion products saw a 25% year-over-year increase in sales to $3.1 million [6] - The Surgical segment achieved a net income of approximately $500,000, an improvement of $2.7 million year-over-year [6] - The Tissue Health Plus (THP) segment reported a net loss of $2.5 million, compared to a net loss of $1.3 million last year [32] Market Data and Key Metrics Changes - The company expanded its distributor network to over 400 distributors, up from more than 300 the previous year [18] - The customer base grew to over 1,400 healthcare facilities, compared to more than 1,100 in the prior year [19] - The number of surgeons using the company's products in existing facilities increased significantly, indicating strong growth potential [20] Company Strategy and Development Direction - The company is focused on preserving capital while driving sustainable growth and long-term value creation [14] - A formal process has been initiated to evaluate strategic alternatives for the THP segment, aiming to maximize shareholder value [12][13] - The company plans to reduce cash investment in the THP segment in the second half of 2025 to preserve capital [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the financial resources available to support key growth initiatives, including cash flow from the Surgical segment and available borrowing capacity [35] - The company does not anticipate a material impact from tariffs on operations in 2025 [35] - Management highlighted the importance of expanding clinical evidence for key products to educate the market on their benefits [8] Other Important Information - The company completed the acquisition of CarePix, which is integral to the THP technology platform [22] - The THP pilot program began with a provider group, aiming to validate and optimize the THP technology platform [23][24] - The company achieved two product development milestones under its exclusive license agreement with Biomimetic Innovations Limited [35] Q&A Session Summary Question: How long does it typically take for a new distributor to become productive? - The timeline varies based on market conditions and existing approvals, ranging from days to months [39][40] Question: What is the expected cadence of operating expenses moving into 2026? - The company anticipates THP segment investments between $5.5 million and $6.5 million for the second half of the year [41] Question: Can you provide details on the growth of specific products like CELERATE and BioSurg? - CELERATE and BioSurg are key growth drivers, with both products showing steady growth and significant market potential [48] Question: What are the main drivers for seeking strategic alternatives for THP? - The company is looking for strategic partners to complement its investments and expand the THP product line [52][53]