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 the first quarter of 2025 was $13.6 million, down $3.8 million or 22% year over year [11] - 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] - Adjusted EBITDA loss for the first quarter was $8.3 million, compared to a loss of $5.1 million in the prior year [15] - Cash and cash equivalents as of March 31, 2025, were $3.2 million, with total debt obligations reduced to approximately $35.5 million [16][17] Business Line Data and Key Metrics Changes - Systems revenue decreased by 25%, with a 25% decrease in lease systems revenue as well [12] - The percentage of total systems revenue from internal lease programs was approximately 25%, unchanged from the prior year [12] Market Data and Key Metrics Changes - International revenue decreased by 29%, while U.S. revenue decreased by 16.5% year over year [12] - The global capital equipment environment remains uncertain, affecting customer system adoption in both U.S. and international markets [6][8] Company Strategy and Development Direction - The company is focusing on transitioning to higher quality cash revenues, with cash system sales in the U.S. representing 80% of total U.S. system sales [7] - Plans to evolve the portfolio and launch a new body device in the second half of 2025 are underway [9] - The company is managing cash burn through disciplined cost management and targeted investments for long-term growth [9] Management's Comments on Operating Environment and Future Outlook - Management noted that customer financing pressures, economic uncertainty, and tighter credit markets are impacting system adoption [6] - 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 enhanced its balance sheet by converting $11 million of debt to equity and secured a new bridge loan amendment [10][17] - The company is actively evaluating strategic alternatives to maximize shareholder value amid current market conditions [18] 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 [20][22][24] Question: Timing of delayed sales contracts - Delays in closing sales contracts were attributed to economic hesitancy affecting both U.S. sales and international distributor orders [27][29] Question: Update on next-gen body contouring device - The launch of the next-gen body contouring device is expected in the early part of the second half of 2025, with significant market uptake anticipated based on customer feedback [30][31][32]