Financial Data and Key Metrics Changes - The company reported record revenue of $7.4 million for Q2 2025, representing a 20% increase year-over-year and a 10% sequential increase [7][19] - Gross margins remained strong at 87%, slightly up from 86% in the previous year [7][20] - GAAP net loss was $3.7 million, or a loss of $0.44 per share, compared to a net loss of $2.7 million, or $0.38 per share, in the previous year [21][22] - Cash balance as of June 30, 2025, was approximately $7.4 million, down from $12.2 million at the end of 2024 [22][23] Business Line Data and Key Metrics Changes - Revenue from the VA hospital system grew 12% sequentially, reaching $5.3 million in Q2 2025 [8][19] - Direct-to-consumer brand TRUVEGA posted $1 million in sales for Q2, a 74% year-over-year growth but a sequential decline [10][19] - The U.S. prescription channel recorded revenue of $394,000, down 17% year-over-year [13][19] Market Data and Key Metrics Changes - Revenue from outside the U.S. was $465,000 for the quarter, down 9% from the same period last year [14][19] - The total addressable market within the VA channel is significant, with estimates of 600,000 patients treated for headaches [8][9] Company Strategy and Development Direction - The company is transitioning from a single product focus to a broader bioelectronic technology company, with plans to invest in growth and long-term value creation [5][12] - The integration of the recently acquired Neurometrics has been completed ahead of schedule, and the company is focusing on expanding its product offerings [6][25] - The company plans to increase marketing and promotional investments in the TRUVEGA platform to drive growth in 2026 and beyond [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the VA channel and the direct-to-consumer market, despite delays in profitability due to increased spending [25][29] - The company expects to need $11.5 million to $12 million in quarterly revenue to achieve cash positivity, significantly higher than the current revenue levels [18][19] - Management highlighted the importance of gross profit margins, which could lead to improved operating margins once sufficient revenue is generated [19][25] Other Important Information - The company entered into a term debt facility with Avenue Capital, providing approximately $7.2 million in additional net cash [14][23] - The company is facing patent infringement issues with a competitor, which has led to legal expenses [11][36] Q&A Session Summary Question: Insights into TRUVEGA revenue composition - The $500 TRUVEGA Plus accounts for about 80% of revenue in the category, while the $350 version lags behind [35] Question: Legal actions regarding patent infringement - Cross complaints have been filed in federal court, but no further comments were made beyond public filings [36] Question: New product expectations - The prescription Quell Fibromyalgia product line is now operational, expected to generate material revenue in the latter half of the year [38][39] Question: Annualized marketing spend increase - Marketing spend is expected to increase by 5% to 6% in line with revenue growth [42][43] Question: Decision to ramp up spending and delay profitability - The decision was influenced by restructuring the sales force and positive trends in direct-to-consumer business [48][49] Question: Contribution of Amazon sales - The company is still resolving issues related to order fulfillment from Amazon [48] Question: Return on advertising spend - The media efficiency ratio was 2.0, indicating $2 of revenue generated for every $1 spent on advertising [57] Question: Integration with Apple Health - The integration allows access to a larger biohacker ecosystem, with potential use cases being explored [59]

Financial Data and Key Metrics Changes - In the first quarter of 2025, the company reported revenue of $6.7 million, a 23% increase compared to $5.4 million in the first quarter of 2024 [7][23] - Gross margins improved to 85% in Q1 2025 from 84% in Q1 2024 [7][24] - GAAP net loss for Q1 2025 was $3.9 million, compared to a net loss of $3.5 million in Q1 2024 [26] - Cash and cash equivalents totaled approximately $8 million as of March 31, 2025, down from approximately $12.2 million at the end of 2024 [27] Business Line Data and Key Metrics Changes - Prescription gammaCore VA revenue grew 22% to $4.7 million in Q1 2025 from $3.9 million in Q1 2024 [8] - TRUVEGA net sales reached approximately $1.1 million, a 187% increase from the previous year [10] - Revenue from channels outside the United States increased to $513,000 in Q1 2025 from $449,000 in the same period last year [14] Market Data and Key Metrics Changes - The VA Hospital Administration estimates around 600,000 patients are treated for headaches in the VA system, with a significant number of fibromyalgia patients also identified [9] - The company has dispensed gammaCore devices to approximately 9,500 veterans, representing about 1.6% of the total addressable headache market within the VA system [9] Company Strategy and Development Direction - The company is transforming into a broader bioelectronic technology firm, with a focus on medical devices and wellness products [5] - The acquisition of the Quell product line from Neurometrics Inc. is a key component of this transformation [5][17] - The company plans to evaluate market access through third-party payer systems and hospital networks for its prescription product suite [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to sequential growth in core prescription channels and highlighted the strong demand for gammaCore in the VA channel [30] - The company anticipates that operating metrics will improve as revenues grow and one-time expenses decrease [30] - Management expects to achieve cash neutrality with quarterly revenue of about $9 million by the end of 2025 or early 2026 [17] Other Important Information - The company incurred additional one-time expenses for severance related to internal restructuring and the acquisition of Neurometrics [15] - The company plans to launch TRUVEGA in the UK and Canada later in 2025 [14] Q&A Session Summary Question: What are the expected margins for Quell by the end of the year? - Management is optimistic that overhead absorption will be better than the previous structure, aiming for margins above 60% but cannot provide precise estimates yet [40][41] Question: Any concerns about tariff exposure for Quell components? - Management believes there is minimal tariff exposure as most components are sourced domestically, with some from Southeast Asia [42] Question: How should growth be modeled for top-line revenues? - Management expects mid to high single-digit sequential growth in the VA channel, potentially accelerating into the teens as new products are added [50] Question: What is the expected contribution from the new acquisitions? - Material revenue contributions from Sparrow are expected to be more of a 2026 story, while Quell is anticipated to generate revenue once manufacturing is validated [61][63] Question: What are the plans for R&D spending? - R&D expenses are expected to remain steady, focusing on sales support and data related to PTSD and traumatic brain injury [65]

Financial Data and Key Metrics Changes - In the first quarter of 2025, the company reported revenue of $6.7 million, a 23% increase compared to $5.4 million in the same quarter of 2024 [22][6] - Gross margins improved to 85% in Q1 2025 from 84% in Q1 2024 [6][23] - GAAP net loss for Q1 2025 was $3.9 million, compared to a net loss of $3.5 million in Q1 2024 [24][26] - Cash and cash equivalents totaled approximately $8 million as of March 31, 2025, down from approximately $12.2 million at the end of 2024 [26] Business Line Data and Key Metrics Changes - Prescription gammaCore VA revenue grew 22% to $4.7 million in Q1 2025 from $3.9 million in Q1 2024 [7] - TRUVEGA net sales reached approximately $1.1 million, a 187% increase from the previous year [10] - Revenue from channels outside the United States increased to $513,000 in Q1 2025 from $449,000 in the same period last year [14] Market Data and Key Metrics Changes - The VA Hospital Administration estimates around 600,000 patients are treated for headaches in the VA system, with a significant number of fibromyalgia patients also identified [8][9] - The company has dispensed gammaCore devices to approximately 9,500 veterans, representing about 1.6% of the total addressable headache market within the VA system [9] Company Strategy and Development Direction - The company is transforming into a broader bioelectronic technology firm, focusing on medical devices and wellness products, with the acquisition of the Quell product line from Neurometrics being a key component [4][5] - The company aims to leverage established distribution channels, particularly in the VA hospital system, to accelerate the adoption of new products like Quell and Sparrow [20][32] - Plans to launch TRUVEGA in the UK and Canada later in 2025 are underway [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to sequential growth in core prescription channels and highlighted the positive momentum in both VA and direct-to-consumer channels [27][28] - The company anticipates that operating metrics will improve as revenues grow and one-time expenses decrease [28][33] - Management expects to achieve cash neutrality with quarterly revenue of about $9 million by the end of 2025 or early 2026 [16] Other Important Information - The company incurred additional one-time expenses for severance related to internal restructuring and the acquisition of Neurometrics [15] - The contribution margin of incremental revenue is approximately 65% with the current product mix [16] Q&A Session Summary Question: What are the expected margins for Quell by the end of the year? - Management indicated that while precise estimates are not available yet, they are optimistic that margins will be well above 60% once manufacturing is restarted [38][39] Question: How does cash look after the Neurometrics acquisition? - Cash levels are expected to remain similar to those reported as of March 31, with the acquisition costs primarily covered by cash on Neurometrics' balance sheet [43] Question: What is the growth outlook for top-line revenues? - Management expects mid to high single-digit sequential growth in the VA channel, potentially accelerating into the teens as new products are introduced [48] Question: How is the company expanding its sales efforts in the VA hospital system? - The company is adding headcount to its sales function to increase support in the VA hospital system, with a focus on new products [50][52] Question: What are the early results from selling TRUVEGA on Amazon? - Initial sales through Amazon have been promising, with a few hundred units sold, and the company is optimistic about future growth [56][57]