Financial Data and Key Metrics Changes - The company reported record quarterly revenue of $9.4 million for Q3 2024, representing an 89% increase year-over-year and a 31% sequential increase from Q2 2024 [5][11] - Gross margin improved to 75.5%, up from 71.5% in the same period last year, primarily due to a line transfer at a new contract manufacturer and positive pricing impacts [12] - Operating income for Q3 2024 was $2 million, an improvement of $2.5 million compared to the same period last year [12] - The net loss decreased to $20.7 million from $23.7 million year-over-year, attributed to a change in the fair value of derivative liabilities and increased operating income [13] Business Line Data and Key Metrics Changes - Consumables revenue, which constitutes approximately 58% of total revenue, grew 75% year-over-year and 14% sequentially [5] - Ultimate Systems sales saw a significant increase of 144% year-over-year and 74% sequentially, indicating strong demand and successful sales strategies [6] Market Data and Key Metrics Changes - The company is focusing on the U.S. market, where it has seen substantial growth, while international sales remain sluggish, primarily associated with the dermaPACE and profile product line [38] Company Strategy and Development Direction - The company aims to transition from a small to a medium-sized business by engaging with larger, more sophisticated customers, which presents both opportunities and challenges in revenue forecasting [8][10] - There is a focus on maintaining multiple sourcing for manufacturing to avoid single points of failure, with plans to enhance gross margins through new manufacturing processes [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting a strong customer pipeline and the potential for continued growth, particularly in the U.S. market [26] - The company is guiding for Q4 revenue between $9.7 million and $10.5 million, which would represent a 40% to 50% growth compared to the same quarter last year [15] Other Important Information - The company has successfully repaid certain debts and regained compliance with loan covenants, simplifying its capital structure [7] - A full-time employee has been hired to address material weaknesses in internal controls over reporting, indicating a commitment to improving operational integrity [40] Q&A Session Summary Question: Can you discuss the transition to new manufacturers? - The company has successfully transitioned to two new contract manufacturers for systems, achieving a production rate of 25 to 30 systems per week [20] Question: How many systems sold this quarter were from the new manufacturing? - Only a few systems were produced by the new manufacturers by the end of Q3, with a more significant impact expected in Q4 [22] Question: Can you provide details on the customer pipeline? - The current customer pipeline is the best seen, with larger and more sophisticated customers showing interest, although the sales process is more complex [26] Question: What is the outlook for operating expenses? - Operating expenses are expected to remain flat in Q4 compared to Q3, with modest growth anticipated in 2025 [33] Question: What is the status of the company's debt obligations? - The company has repaid a $1.3 million note and is no longer in default on its debt obligations [37] Question: What is the company's focus on international sales? - The company is primarily focused on the U.S. market due to its size and potential, with limited focus on international sales for the time being [38]

Financial Data and Key Metrics Changes - Revenue for Q3 2023 totaled $5 million, an increase of 19% compared to $4.2 million for the same period in 2022, falling within the guidance range of 15% to 25% [11] - Gross margin for Q3 2023 was 71%, slightly down from 72% in the same period last year [11][12] - Operating loss for Q3 2023 was $500,000, an improvement of $2 million compared to the same period last year [12] - Net loss for Q3 2023 was $23.7 million, compared to a net loss of $1.1 million for the same period in 2022, primarily due to noncash losses on derivative liabilities [13] Business Line Data and Key Metrics Changes - 55 UltraMist units were sold in Q3 2023, with over 40% of those sales to new customers [17] - Ultramist revenues grew over 25% year-on-year in Q3 2023, with consumables revenue growing 11% from Q2 and 24% compared to Q3 2022 [22] - Consumables for Ultramist constituted 62% of overall revenues in the quarter [22] Market Data and Key Metrics Changes - The company ended Q3 2023 with 581 active systems in the field, up from 526 at the end of Q2 [22] - The company is focusing on engaging new customers, particularly in busy practices with high utilization rates [21] Company Strategy and Development Direction - The company is developing a new business model allowing customers to bundle payments for UltraMist into a monthly operating cost, which is expected to generate predictable recurring revenue [7][9] - The company aims to increase production capacity for systems to two to three times the 2023 levels in 2024 [39] - The merger with Sweat Equity Partners is anticipated to enhance capital and capabilities, with plans to move to NASDAQ [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about eliminating production constraints and achieving a stable manufacturing cadence of double-digit rates per week [5] - The company anticipates revenue growth in the range of 15% to 25% for Q4 2023, with no significant production capacity constraints expected [25] Other Important Information - The company closed an additional financing round in July 2023, raising approximately $3 million to support operations [13] - Management emphasized the importance of pricing discipline and the positive market response to it [18] Q&A Session Summary Question: What is the state of dermaPACE and its future? - Management indicated that dermaPACE was slow in Q3 and is currently assessing its direction, focusing on international channels and potential long-term studies for reimbursement [28][30] Question: Update on merger approval and potential hurdles? - Management stated that they filed an amended S-4 and are awaiting SEC comments, with a good chance of closing the deal this year [32][34] Question: Capacity for devices and applicators going forward? - Management confirmed that production capacity has reached a double-digit cadence weekly and plans to significantly increase capacity in 2024, including redesigning applicators for better manufacturability [39][40]

Financial Data and Key Metrics Changes - Revenue for Q2 2023 totaled $4.7 million, a 20% increase compared to $3.9 million in Q2 2022, falling within the guidance range of 15% to 25% [8] - Gross margins increased to 74% in Q2 2023 from 72% in the same period last year, primarily due to stronger pricing initiatives [9] - Operating income improved to $1 million in Q2 2023, aligning with the initiative to drive profitable growth [10] - Net loss for Q2 2023 was $7.3 million, compared to a net income of $1.6 million in Q2 2022, primarily due to noncash losses on derivative liabilities [10] - Adjusted EBITDA for Q2 2023 was $171,000, compared to negative $1.9 million in the prior year period [11] Business Line Data and Key Metrics Changes - The company is focusing on consumables, with Ultramist consumables accounting for 59% of overall revenues in Q2 [17] - The attach rate, which measures the number of active systems in the field and their consumable usage, is expected to rise significantly in future years [20] Market Data and Key Metrics Changes - Fastest growing sales channels are private offices, nursing homes, and mobile wound care groups, indicating a shift towards treating patients outside of hospitals [13] - Proposed changes by Medicare contractors could significantly impact the marketplace for advanced skin substitutes, potentially benefiting Ultramist as a viable treatment option [14] Company Strategy and Development Direction - The company aims for rapid profitable growth and to create a self-sustaining business model, reducing reliance on capital markets [7] - Key hires and partnerships, such as with Pacific Medical, are intended to expand market reach and professionalize operations [6][15] Management's Comments on Operating Environment and Future Outlook - Management anticipates revenue growth of 15% to 25% year-over-year for Q3 2023, despite production capacity constraints [22] - The company is optimistic about the future of the wound care market and is focused on increasing the number of active systems and consumables revenue [23] Other Important Information - Total current assets as of June 30, 2023, were $6.1 million, down from $6.6 million at the end of 2022 [11] - The company closed an additional financing round in July 2023, raising approximately $3 million to support operations [11] Q&A Session Summary Question: Comments on the dermaPACE product - Management stated that dermaPACE units are still being sold actively, but it represents a small portion of revenue, with a renewed focus expected in coming quarters [26][27]

Financial Data and Key Metrics Changes - In Q1 2023, revenue amounted to $3.8 million, representing an 18% increase compared to the same period last year, aligning with the guidance of 14% to 20% growth [9][10] - Gross margin decreased to 67% in Q1 2023 from 72% in Q1 2022 due to cost increases associated with servicing refurbished equipment [7][10] - Operating expenses increased by 4.7% year over year, totaling $4.5 million, primarily due to higher general and administrative expenses [9][10] Business Line Data and Key Metrics Changes - The number of treatments reached a record 43,000 in Q1 2023, indicating continued adoption of Ultramist [7] - Units shipped achieved the highest level for the first quarter in company history, reflecting robust demand despite supply chain challenges [7] Market Data and Key Metrics Changes - Demand for products remains strong, with over 20 new accounts added to the pipeline following recent conferences [6] - The company is on track to receive over 400 devices in 2023, compared to 217 sold last year, although it is uncertain if all will be sold [5] Company Strategy and Development Direction - The company is focused on addressing supply chain issues to balance supply and demand, with initiatives aimed at improving automation and reducing costs [8][16] - Management plans to leverage existing infrastructure for profitable growth and aims to achieve record revenue growth and profitability in 2023 [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming supply constraints, indicating that the issues are primarily related to Ultramist production [23] - The company anticipates revenue growth of 15% to 25% in Q2 2023, contingent on supply chain improvements [15] Other Important Information - The company closed an additional private placement in May 2023, raising $1.2 million to support operations [10] - Management emphasized the importance of strong reimbursement channels for Ultramist across various service settings, enhancing market opportunities [20] Q&A Session Summary Question: Can you expand on the reimbursement situation for Ultramist? - Ultramist has strong reimbursement in multiple settings, including hospitals, private offices, home health, assisted living facilities, and nursing homes, providing diverse channels for growth [20] Question: Are the supply constraints expected to be prolonged? - Supply constraints are primarily around Ultrimist, but management is confident that these issues will not last a year and are working to ensure a consistent supply [23] Question: Will operating cost increases be a recurring issue? - The increase in operating costs is largely due to one-time professional service fees related to SEC initiatives, and overall operating expenses are increasing at a slower rate compared to revenue [29]