Total Revenue

Up 4% (from $12,567k to $13,067k)

Modest revenue growth is driven by increased unit sales and early signs of geographic expansion, particularly in the U.S. market, which supports overall top‐line improvement. " "

Operating Income (EBIT)

Declined 69% (from $5,577k to $1,726k)

Despite higher revenue, operating income fell sharply due to rising operating costs—likely driven by significantly increased R&D spending and other expenses—that eroded margins compared to the prior period. " "

Net Income

Increased by ~266% (from $421k to $1,546k)

Net income’s dramatic improvement suggests that non-operating factors or one-time adjustments helped overcome the operating challenges, even as EBIT declined, resulting in a stronger bottom line. " "

Earnings Per Share (EPS)

Declined approximately 65% (from $0.26 to $0.09)

EPS dropped considerably likely due to increased share dilution or cost allocation effects that outweighed the net income gains, reducing profitability on a per-share basis despite overall net income growth. " "

R&D Expenses

Increased 130% (from $677k to $1,561k)

The surge in R&D expenses reflects a strategic push to advance innovation and new product development, signaling a commitment to long-term growth despite its short-term impact on margins. " "

United States Revenue

Increased approx 5.7% (from $11.67m to $12.34m)

U.S. revenue growth indicates a solid performance in the core market through increased sales of key systems, providing a robust base that contributes to overall revenue improvements. " "

China Revenue

Increased approx 16% (from $0.61m to $0.71m)

Although modest in absolute terms, China revenue’s higher growth rate signals improved market penetration and potential for expansion in this region. " "

Cash Flow

Shifted from +$2,661k to –$502k

The switch to negative cash flow is largely due to increased capital investments and higher working capital requirements (including R&D and possibly inventory buildup), reflecting a liquidity challenge despite operational improvements. " "

Fair Deal Agreement with delayed revenue recognition

Mentioned consistently in Q1 " , Q2 " " " , and Q3 " " , with revenue expected to ramp mostly in 2025.

Emphasized in Q4 with focus on high-volume clinics, shared revenue model (50%) and ~3-month delay from signing to insurance reimbursement. " "

Continued: Strategic priority; timeline for revenue contribution remains second half of 2025.

Customer concentration risk with the largest customer

Q1 noted >50% of shipments to one customer. " No specific mention in Q2. Q3 indicated ~50% of placements to largest customer. "

In Q4, 25 out of 39 units delivered to the largest customer, who placed a PO for 50 units. " "

Persistent: High reliance on a single customer remains a material concentration risk.

Significant market opportunity with private equity-backed dermatology groups

Not mentioned in Q1. Q2 highlighted program appeal to large PE-backed groups. " Q3 continued noting ~12–15 major PE groups reviewing or signing contracts. "

Q4 reaffirmed ~12–15 PE roll-ups (covering ~20% of U.S. clinics) growing to 25% in next 2–3 years. " FDA model seen as ideal for their expansion. " " "

Ongoing: Growing importance of PE-backed groups; a key driver of future demand.

Sufficient production capacity and inventory for anticipated growth

Q1 highlighted inventory build of $14.7M to meet growth. " " Q2 noted additional orders for units to cover year-end activity. " " Q3 reiterated inventory could cover all of 2025. "

Q4 stated over 50 paid-for units ready for immediate FDA deployment, covering 8-week lead time. " "

Stable: Consistent readiness to fulfill orders and support ramp-up.

International expansion

Q1 saw new territories (Ireland, Guatemala, Turkey) and first Asia sale (Taiwan). " Q2 added further Asia sales (Taiwan, China) and distributor pursuits. " Q3 mentioned Vietnam conference interest, plans for 2–3 new territories yearly. " "

Q4 indicated 5 systems shipped internationally in Q4, 10 total for 2024, plus deeper distributor relationships. " "

Consistent: Continual global expansion efforts, though overshadowed by U.S. dermatologist focus.

TransDermal Infusion (TDI) product launch delays

Q1–Q2 saw FDA bottlenecks and 510(k) resubmission planning. " " " " Q3 made no mention. "

Q4 revealed plans to resubmit in first half of 2025 after refining approach. "

Reintroduced: Delayed but remains part of future product diversification strategy.

Seasonal softness impacting early quarters

Q1 and Q3 referenced Q3 as historically softer. " " No mention in Q2.

Q4 explicitly stated Q1 and Q3 are the softest, with potential lower Q1 2025 vs. Q1 2024. "

Newly emphasized: Clear acknowledgement of impact on budgeting and forecasting.

Evolving bull vs. bear sentiment around recurring Fair Deal Agreement

Q1–Q3 portrayed increasingly positive reception, but with delayed revenue (Q1 " " " , Q2 " " " " , Q3 " " " " " " ).

Q4 optimism remained strong, focusing on high-volume sites, but acknowledging ~3-month lag from installation to payment. " " " " "

Increasingly bullish: Execution challenges noted, yet broad confidence for long-term recurring revenue.

Potential large future impact from additional and expanding group agreements

Q1 offered minimal detail but hinted Fair Deal growth. " No specific info in Q2 aside from Fair Deal expansions. " " Q3 highlighted Platinum Dermatology contract for 130 sites. " "

Q4 underscored ongoing talks with major PE-backed groups; second-half 2025 revenue expected. " " "

Building momentum: Large-group roll-ups poised to drive significant revenue growth.