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Good morning, everyone. Thanks for joining for another day for the Canaccord 46th Annual Boston Growth Conference. This morning, we're joined by Kerry Vance, who's the CEO of Aveda Medical. Kerry, I'm really pleased to have you here. And we might do sort of 15 minutes of a presentation and then we'll get into Q&A. Thanks. Thank you. Thank You. Good morning everyone. It's good to be with you. Again, Kerry Vance, the President and CEO of Aveda Medical. I've been the CEO for about 10 months, and I'm excited about what's happening at the company and sharing that with you today. Aveda medical is a hospital-based acute wound care company, so that's an important distinction between ourselves that we call on hospitals and acute wound care locations as opposed to the chronic care space in offices, and so that's an important distinction of where we play and where we don't play. Our products are repeat use, and so we build a book of business with facilities and physicians that use our products on the same patient, and we have three products, and I'll talk about those in a minute, but essentially those three products are used on the same patient, the same hospital, same physician, which makes it highly efficient for our salespeople and and effective in terms of synergies in our portfolio. We're focused on approximately 200 centers in the U.S., about 120 burn centers, about 55 to 60 level 1 trauma centers, and then opportunistic about another say 20 where You might have a reconstructive cosmetic surgeon that uses our technology as well. We have a $1.3 billion addressable market for our portfolio in the U.S., about the same addressable mark outside the U S as well again, join the, the company as CEO after serving on the board for a few years last October. And you can see the, the growth path over the last couple of quarters that we've reported out from 17.6 to 19.3 to 21.7. If you go back and look at transcripts of earnings from last November, February, and May, we've been pretty consistent about what we expect to stabilize the business, to understand and put it on an organic growth trajectory, quarter over quarter sequential growth. That's what's happened over the last couple quarters. And you can expect that to continue to happen, and we'll talk more about that. In the U.S., we've just started to break out our portfolio and the different products. We have U. S. resale, international resale. So internationally, we only sell resale and then cohelix and permioderm. You can see we're growing in all three product lines, both U.s. and internationally. We raised our guidance as a result of our growth path from 80 to 85 million to now 86 to 89 million this year, and that's what's expected. Importantly, also, as we grow revenue in sequential quarters and we hold operating expenses consistent, we hold margins consistent, uh, we expect to be cash flow break even in the fourth quarter of this year. Uh, this breaks it down again beyond revenue to margin expenses, net loss, we're a very simple business. We have three product lines, high margin, consistent high margin business, consistent operating expenses. You can see that went down year over year but stayed pretty much consistent quarter over quarter. We expect that to continue for several quarters ahead. We don't expect that we'll need to add OpEx as we grow. We're built to grow and and we'll talk more about how that is the case, especially from a commercial standpoint. You can see the kind of dramatic reduction in use of cash. Again, we expect that to continue as we grow in revenue and hold consistent our OPEX. We have, as of the end of the second quarter, $11 million in cash available as well. these are the three product lines for those of you that aren't familiar again if you think about a patient that comes in I'll start from the bottom actually a patient comes in to with with either a large burn or a traumatic wound that wound needs to be cleaned and excised and and then permeaderm our permeadern product is used as a biosynthetic dressing a temporizer It's transparent, so you put it over the wound to protect the wound, to assess the wound before you make some decisions about how you're going to close the wound itself. Cohelix is a dermal matrix. That is used as you're preparing the wound bed. So if you have that wound, what you're trying to do is vascularize the wound and get it ready for grafting. and so you need that well vascularized and prepared and and so we have cohelix and then resell is used either by itself to spray on skin cells or in conjunction with a split thickness skin graft or meshed skin graft and within the resell portfolio we have three products one is our manual resell product which people continue to use those that have refined the technique to using Resell, and then Resell Go, which is an automated version, and then ReSell Go Mini, which is a smaller version for smaller wounds. This is an example of a woman who had initial treatment that failed, and then the use of Resell not only helped her to heal very effectively in terms of an outcome, but you can see the return of pigmentation, which is key feature and benefit from using Ressell versus SkinGraft. On the right side, you can see that not only did revenues increase in resale, but volume increased as well. You can see quarter over quarter from Q1 to Q2 how that happened. We developed ResaleGo Mini to address smaller wounds, and that's exactly what it did and has done. You can the size wounds that Resale Go is addressing. So the way that you expand from large wounds or large burns to smaller wounds is some of it is education, some of it is them understanding the advantages from an economic and outcome standpoint, but also some of it is product driven and ResaleGo addresses that need that they have. It's important reimbursement is always key to traction in the marketplace. We've, we've over the last year and a half or two we've gone through kind of a stopgap in terms of getting physicians paid. About a year and a half ago, CMS delegated that to Medicare administrative contractors in the U.S. That was somewhat of a temporary way for them dealing with reimbursement. We'll talk more about that later, but essentially January 1st of 27, it does go to a simplified nationwide reimbursement which all our clinicians and hospitals are very excited about. Essentially, not only do we use, clinicians use our three products to provide better outcomes, to assess the wound bed, to prepare the wound bed, and to treat the wound itself for healing and closure, but there's an economics to it for our company. You know, two years ago if you had a certain patient that would come in, we could offer them resell, and that would be an effective way of healing that wound. But now we can offer all three products depending on what the patient needs or the clinician needs. You can either use Permioderm as a temporizer to cover the wound. You can use Perm ioderm plus resell. Or you can use all three product to cover, the wound, protect the wound, assess the wound, prepare the wound bed, vascularize the wound bed, and then spray the wound bad for healing. And you can see the resulting revenue that can come from the same patient, same physician, same hospital. For our salespeople it's very efficient. They're in these cases, they're having conversations with physicians about using it, all three products on different types of patients as needed. Right now we have about 25 hospitals in the U.S. that use all three of our products, which is very encouraging. We're a data-driven company. Some of the data is clinical and some of it is economic. Both are important to our clinicians in the hospitals as they assess using our products. The data on the left shows a 36 percent reduction in length of stay for patients that use resell versus a split thickness skin graft. You can see the impact that it has on the amount of time the patient is there, how soon they get to go home, but also for the hospital in terms of how long they have to take care of that acute wound patient. From a cohelic standpoint, what we're looking for, too, is speed. Speed to graft readiness, and the study shows that up to 20 days difference between us and the competition in other dermal matrices. As little as five days in wound bed readiness. And then Permioderm is fairly straightforward. As a temporizer, we compete against allograft or cadaverskin. And so having that be comparable and in some ways very advantageous in terms of handling and visualization, but also in terms OF just straight cost in using Permiodern versus cadaver skin we have a couple endpoints to our clinical data around safety but also around cost and workflow essentially the the company is built to grow it's a very simple company and I think as CEO have tried to keep it simple and very focused focused on our markets focused on our customers focused on what makes a difference to them in terms of their patients from a clinical perspective from an economic standpoint from a workflow standpoint, make our products really easy to buy, really easy to use, and make the company really easy to grow. So with that I'll take questions. Thanks. Thanks Kerry. I think the point that I just want to sort of emphasize is that you've obviously had some reimbursement challenges in the last, you know, 12 to 18 months, you know, is there any sort of lingering concerns and, you know, just maybe a little bit more color as to what it looks like from now on? Sure. I mean, I'm really proud of the team, the way that we adjusted. I think what occurred in the first quarter of 25 was not our doing, was not our fault. CMS essentially said this is a little more complicated than we'd like. Go back and simplify it. So they delegated it to the MACs. We approached the MACS and worked with them. They were very slow to publish. That slowness created confusion and wondering from the surgeons whether they would get paid. That tends to impact their use. And so we worked through all of that. And over the course of really a year, they all published. They're all paying. Everything is fine. And the expectation two years ago was that there would be one simplified national code. So clinicians and American Burn Association, in support of the company, worked with CMS to have a very simplified, robust code that starts January 1st. So they've all expected it. It's happening. They all know it's coming. We don't expect any disruption as a result of it. we actually expect a lot of excitement around how simple it is and accessible it is for them and their patients from a benefit standpoint. And you've had a really good quarter you just released. Has that been sorted during that quarter? What does it look like during that quarter? Yeah, I mean, it's a combination. I mean you remember that last year there were some people that stopped using it because of it. Some people stopped trialing it and so those people again And beginning of this year, I started trialing again, so we have new resale users as a result. The growth of the company, which is great, it comes from all the product lines for all reasons, economic, clinical, ResaleGo, Resalego Mini, Cohelix, Permioderm. It's really across-the-board growth story. The slide where you are showing sort of, you know, if you're adding all products to a patient's wound and sort of what you can then, the ASP per patient as you use all of those products. I mean, over time, it's obviously early days with Cohelix and Permioderm, but when you think about what you've done with resale and the growth still left in that business versus Cohelx and Permiaderm, what does it look like over the sort of medium and longer term? Yeah, we're very underpenetrated. I mean we've been out in the market for a while, but we're sehr underpenetrated. Even in our sweet spot of larger wounds, burn centers, we're still about 15% penetrated. We're really almost barely penetrated in trauma and smaller wounds. And so that's why we have a utilization penetration strategy for our salespeople. They know there are many more physicians to go after to use the product. There are many different types of size wounds and cases that they can get after. And so they're in there every day, which provides them the opportunity to sell already where they are and where we already have relationships. You have completed a cost-out initiative, and I think that that's largely completed. But can you just remind us of the number of sales reps and sort of how you know what the sales force needs to look like? Are there certain KPIs and metrics that investors can follow? Yeah, I mean, the simple part about running a business is listen to your people and listen to their customers. and listen to your commercial leadership. So when they tell you they need somebody, they have a business case for doing that. I think we understand how we're deployed, how many people we need to cover different cases. You have some hospitals that are large-volume users. They need to be managed. They need a lot of work goes into supporting them. And then you have some that are extremely underpenetrated or where we don't play much, where there's just a lotof growth that needs to occur. So either way, the sales reps have a lot of work to do. And so we assess how much they can cover in terms of geography and in terms of facilities that they can Cover. And so I think we're well positioned. When we continue to grow quarter over quarter, we shouldn't have to add any more salespeople for at least a year and a half or longer. We're positioned to grow because in those facilities they cover, if they're doing twice the business at some point, they can still handle that amount of business. So the initiatives that we put in place last year have now helped us from an OPEC standpoint, but they've also positioned us to grow. We didn't sacrifice a thing to do it. And what's the number of sales reps? Well, again, it's a little bit complicated. We don't give out all our sales rep numbers, but we're pretty much positioned throughout the country. They have about, you know, three, four accounts each, which, again, they're in the OR pretty much every day and multiple physicians within each account, but well covered in the U.S. And again, for the foreseeable future, that should serve us well. I don't know if it's probably a tricky question to answer, but, you Know, when you when the sales reps are going into the hospitals and it's, you know, a new account, how much does data and the clinical data matter to the clinicians versus, you know, obviously the VACs and the hospitals making sure that there's the reimbursement framework? Yeah, I mean, I think it's important, again, to do what works. And so data is very important. And that's why we've tried to do some real world data, some real use cases, even recently some post-market clinical studies around not only efficacy, but from a cost perspective. It's important to understand if you go to a certain physician that is not using our products, you ask them why. And sometimes you have to ask them, why, three or four times to get to the root of the issue. And so sometimes it's workflow. They're not used to doing it. They feel like it might cost too much. So they need to be educated about reimbursement or about length of stay reduction or about efficacy and outcomes or about what their peers might be doing so it's really a combination of all of those things and so our sales reps are trained and around messaging and around addressing any objections that they might have to either using it using our products or using it more pervasively across different types of cases you do have some important data coming out for Cohelix and Permiaderm. Just before we talk about that data, what's the issue that those products are solving? Because I did notice that you had a couple of competitors that called out that it was taking share. I know it's early days, but can you just kind of explain when you talk to clinicians what that's actually solving and why they're liking it? Yeah, I mean, I think it's an interesting next step for the company to have a portfolio. I mean resale, essentially the competition for resale is the way that they've been doing it for decades in terms of skin grafts. But cohelics and permiderm do have competition. And so once you address the market, once you get through VACs, that gives you a license to compete. And you're competing against worthy competitors. But we feel like we have distinct competitive advantages and value there. In the case of cohelix, we believe speed is our greatest benefit, speed and efficacy of the wound bed. So it prepares the woundbed for grafting, and speed is important. So if you can prepare the woundmed and it's ready in 13 days, it can be as little as five, let's say. That's what the study shows, but let's see 13 days versus the 33 days. Those extra 20 days are 20 days of dressing changes, 20 days of potential for infection, pain, et cetera, 20 days added to the amount of time they might be in the hospital. And so for us, the speed to wound bed readiness means a lot for the patients. It means they can go home sooner. It means that they have less potential for less complications. And it helps our clinicians as well and helps the hospital the hospital in terms of how much it costs for them to take care of a patient in acute space. And so I think that's the competitive advantage. That's what the data shows initially and will show in the follow-up as well at the end of the year. Permioderm essentially is competing as a temporizer against allograft. If you think about using cadaver skin, the advantage Permiodern has is multiple. The endpoints are about being comparable and safe, but also about just straight up costing less money. So it's less expensive. It's transparent. I mean, think about addressing where you're trying to assess the wound. You want it to be transparent. So it is. Allograft is not. It's easier to handle. You can basically stick it on the shelf. Allograph needs to be frozen, thawed, tracked because it's human tissue. tissue and so I think we have a distinct simple advantage in that area as well and that's what the data will show. And you mentioned I mean is this when you were looking to add these products was there a sort of pretty broad range of products that you're looking for and these are the best ones? Yeah I think you know if you look at the continuum of care from the time a patient comes into the hospital to the time they leave the question is what all needs to be done in terms of assessing the wound, protecting the wound and preparing the wound bed and closing the wound and the healing that needs to occur and that it needs to stay healed in an effective way so that you don't have complications, you don�t have them returning, and so that they can get out of the hospital sooner. So we look at all of those steps and say what types of products address those. Obviously, resell addresses the grafting side of it, the closing of the wound. The healing process at the end of it. But there are other steps along the way, and so that's when we looked at Permiderm and Cohelix, and I think it's a great addition. It makes our sales force really efficient. They're having the same discussions with that physician within a procedure. You can picture them saying, well, we're doing a resell procedure today, but in the process, they're using a dermal matrix, and they may not be using Cohelux, so you have that discussion during the process. But you're already there. You already have that relationship. So it's highly efficient in that way, too. Are there any more products to add? Well, I think we are all about staying focused. We're all about being disciplined, not scatter shotting all over the place. I think for us, we're consistently evaluating other products that can add value to the bag. We have great relationships. We are we have decent touch every day in these accounts and in these procedures. If we feel like we can add value with other products in the in the years ahead we we assess those on a regular basis and when you think about the competitive um landscape i mean there i and i know the competitive set is different cohelix probably has the most um competition um has there been changes like what what's your is there any sort of latest thoughts on who's winning losing well Well, you know, we're the new guys. We're the small guys. And so for us, we want to take more than our fair share. We haven't seen any kind of dynamics or reaction at this point. We would expect that. Our competitors are very worthy competitors. And so we expect to compete. It's as simple as that. We think we have advantages, and we'll make sure that our physicians know that. And we look forward to that process. We've only got a minute or so, so I'll just pass over to questions. Good question, Will. In case nobody heard that, stock's up 100%. And I think that's a step. I mean, I think we're pleased with it. I think this is a process of building this back. I think, again, if you go back to my transcripts, and I'm very comfortable with anyone doing that as well as what I'm saying today and coming back a year from now or a quarter from now, really try to assess the business, where the hurdles were, what was getting in the way. And so that's everything from, you know, how our people are paid to why people aren't using more of our products with assessing our OPEX, assessing our structure. And so we've made all of those changes. We've really stabilized it. We've become very predictable. I mean, the part about all of this that, I mean you see the growth, you see progress, but essentially what's important is we understand what's happening on a regular basis. And I know even now in Q3 and Q4 and going forward to next year, what's going to happen? I know that because I understand the basics of the business. Our people do as well in that trajectory. And that's why I can confidently say that we'll be cash flow break even by the end of the year. That's why i can raise the guidance. That's where I can talk about sequential growth quarter over quarter and what's happening in the business because of the data, because I understand it. And I think that's what's important, because even though the last week's been great, we report out on Q2, we've moved on, we expect that type of performance to continue, that type of transparency and predictability that builds confidence in investors, and then performing and executing, and that's what we're all about going forward. well i i think growth is the next step when you hold margins at 80 something percent which we intend to do when you have opex that you're holding it's a simple equation right because you're you're essentially growing a business quarter over quarter and as you grow revenue you're gonna get now you're going to go from cash flow break-even to profitability at some point and that's the equation and and that what I love about the business is three products same call point it's it's three or four metrics that that provide the kind of progress that we're looking for that investors are looking for to be self-sustaining and and again profitability at point and and Again low market share We have a ton of work to do but also a ton of opportunity in front of us. Thanks very much for your time. Thank you. Thanks, everyone.