Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $6.8 million, up 1% compared to Q1 2024 [15] - Global recurring revenue for Q1 2025 was $4.7 million, also up 1% year-over-year [15] - Gross profit increased to $3.6 million for Q1 2025, up from $3.1 million in the same period in 2024, resulting in a gross margin of 53.5% compared to 45.6% in Q1 2024 [16] - Total operating expenses decreased to $5.7 million in Q1 2025 from $6.0 million in Q1 2024, a reduction of 5% [16] - Cash burn improved to $749,000 in Q1 2025 from $1.55 million in the prior year [17] Business Line Data and Key Metrics Changes - The installed base of XTRAC devices in the U.S. is approximately 850, with a significant increase in recurring revenue per device [5][9] - The TheraClear X device installed base reached 160 units, up from 104 units at the end of Q1 2024, with revenue growing over 50% year-over-year in six of the last seven quarters [11] - The number of patients submitted for reimbursement for TheraClear X increased by 138% year-over-year, with pre-authorization rates exceeding 85% [12][26] Market Data and Key Metrics Changes - International business sales reached $2.5 million, up 8% year-over-year, with equipment sales up 13% and recurring treatments revenue up 27% [12] - The company is cautiously monitoring the potential negative impact of tariffs on near-term sales, particularly in international markets [13][19] Company Strategy and Development Direction - The company is executing a multifaceted turnaround strategy focused on increasing recurring revenue per device and optimizing device placements [4][5] - The Elevate360 consulting model is being expanded to improve patient conversion and device utilization in underperforming clinics [6][7] - The strategy includes removing underutilized devices to ensure capital efficiency and focusing on clinics that show potential for growth [7][49] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the potential impact of tariffs on international revenue, although there was no immediate effect observed in Q1 2025 [18][19] - The company anticipates favorable outcomes from ongoing discussions regarding reimbursement coverage expansions [10] - Management is optimistic about the traction gained from the turnaround strategy and the increasing demand for cost-effective treatments [12] Other Important Information - The average revenue per XTRAC device in the U.S. was approximately $22,000 in 2024, with potential for significant revenue growth from existing devices [8][9] - The company exited Q1 2025 with cash and cash equivalents totaling $7.8 million, including $1.3 million of restricted cash [18] Q&A Session Summary Question: Can you discuss the TheraClear pipeline and marketplace learnings? - Management noted that the installed base is growing, with 160 devices deployed and a significant increase in patients submitted for reimbursement [21][22] Question: What are the utilization trends for TheraClear? - Management provided insights on the revenue breakeven points and the expected number of procedures per device, indicating a strong potential for growth [28][29] Question: Is there any potential impact from tariffs on domestic business? - Management clarified that the domestic supply chain is minimally impacted by tariffs, primarily affecting international sales and service support [36][38] Question: What is the focus for the rest of 2025 regarding the installed base? - Management indicated a dual focus on increasing utilization of the current installed base while also seeking to sign new clinics [40][41]