Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $15.8 million, a decline of $2.4 million or 13% year-over-year [24][6] - Lease revenue decreased by $3.5 million or 58% year-over-year in Q4, offsetting mid-teens growth in cash system sales [7][6] - Net loss attributable to stockholders for Q4 2024 was $8 million or $11.23 per share, compared to a net loss of $11.1 million or $20.14 per share for Q4 2023 [32] Business Line Data and Key Metrics Changes - Cash system sales in the U.S. increased by 27% year-over-year, representing 87% of total U.S. system sales in Q4 compared to 58% last year [8] - The percentage of total systems revenue from internal lease programs decreased from approximately 41% in the prior year to 20% in Q4 2024 [25] - Sales through distributors more than doubled year-over-year in Q4, particularly in the APAC and EMEA regions [12] Market Data and Key Metrics Changes - Revenue results in fiscal year 2024 reflected a decline of 15% year-over-year, which was better than many competitors [13] - The decline in total revenue was driven by a 13% decrease in both U.S. and international revenue [24][25] - Customer financing pressures and economic uncertainty continue to impact system adoption [10] Company Strategy and Development Direction - The company is focused on transitioning to cash system sales, aiming for 70% to 75% of total systems revenue to come from cash sales [26] - A strategic initiative to restructure debt obligations resulted in a 47% reduction in total debt from $74.9 million to approximately $39.7 million [17] - The company plans to launch a new body system in the second half of 2025, which is expected to drive growth [55] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that macroeconomic headwinds will continue to impact quarterly performance but remains optimistic about returning to growth [14][36] - The company is not providing full-year 2025 financial guidance but expects total revenue for Q1 2025 to be at least $14 million [36] - Management believes that the impact of strategic transitions is behind them, looking forward to a more normalized business profile [13][42] Other Important Information - A 1 for 11 reverse stock split was announced, with the company's common stock trading on an adjusted basis starting March 4, 2025 [21] - The company has made significant progress in reducing cash used in operations by 14% year-over-year [15] Q&A Session Summary Question: Can you characterize what a normal business profile is going forward? - Management indicated that while predicting the macroeconomic environment is challenging, they expect performance to improve compared to 2024 [42] Question: How is the Venus Hair business performing? - Management expressed satisfaction with the performance of the Venus Hair business, particularly the Venus ARTAS Robot, and noted ongoing R&D innovations [46][47] Question: What is the strategy for top-line growth in 2025? - Management highlighted the need to establish a normal rhythm of orders with new distribution partners and anticipates growth in international business [53][54] Question: Are there further cost-cutting measures available? - Management stated that the infrastructure is efficient, and the focus is on increasing sales rather than further cost reductions [57] Question: How do tariffs affect the business? - Management noted that products are manufactured in both the U.S. and Israel, and currently, they do not expect a substantial near-term impact from tariffs [60]

Venus Concept Inc. (NASDAQ:VERO) Q4 2024 Earnings Conference Call March 31, 2025 8:00 AM ET Company Participants Rajiv De Silva - CEO Domenic Della Penna - EVP and CFO Conference Call Participants Marie Thibault - BTIG Jeremy Pearlman - Maxim Group Operator Good day, ladies and gentlemen, and welcome to the Fourth Quarter and Fiscal Year 2024 Earnings Conference Call for Venus Concept Inc. At this time, all participants have been placed in a listen-only mode. Please note that this conference call is being r ...

Financial Performance and Condition - For the year ended December 31, 2024 and 2023, approximately 26% and 33% of the company's system revenues were derived from internal financing programs[152]. - The company had an accumulated deficit of $308.9 million and $261.9 million as of December 31, 2024 and 2023, respectively[159]. - The company expects to continue incurring substantial operating losses and negative cash flows until it achieves profitability[160]. - The company may need additional capital to fund future operations due to unfavorable macroeconomic conditions[161]. - Global supply chain disruptions and inflation have negatively impacted the company's business, financial condition, and results of operations[162]. - As of December 31, 2024, the Company had cash and cash equivalents of approximately $4.3 million, indicating a need for additional financing to support operations and product development[183]. - The Company generated 13% of systems revenues from third-party distributors in 2024, up from 8% in 2023, highlighting reliance on external partners for market penetration[197]. - The company may recognize bad debt expenses if customers default on amounts payable, which could adversely affect its financial results[152]. - The company faces risks related to economic downturns, which may reduce patient demand for elective procedures, adversely affecting financial performance[189]. Strategic Alternatives and Restructuring - The company is evaluating potential strategic alternatives, including mergers, financings, and asset sales, but has not set a timetable for completion[156]. - The company has initiated a restructuring plan, including workforce reductions and discontinuation of operations in unprofitable markets[155]. - The company may need to raise additional capital through public or private equity or debt financings, which could result in dilution to stockholders[185]. - The Security Agreement restricts the Company's ability to incur additional indebtedness, potentially limiting future financing options[186]. Regulatory and Compliance Risks - Regulatory compliance is critical, as failure to meet FDA requirements could result in enforcement actions, including fines and product recalls[239]. - The company may face significant costs and delays if regulatory authorities change policies or if new regulations are enacted[238]. - The complexity of patent litigation may lead to substantial costs and could distract management from core business operations[232]. - The company must navigate extensive government regulations, which have become more stringent over time[237]. Intellectual Property and Innovation - The company has 16 issued U.S. patents and 8 pending U.S. patent applications as of December 31, 2024, covering various technologies[229]. - The company has 92 issued U.S. patents related to the ARTAS System, which is crucial for maintaining competitive advantage[229]. - The company must continue to innovate and develop new products to maintain its competitive position in the rapidly evolving medical technology market[196]. - The aesthetic equipment market is characterized by rapid innovation, and failure to develop new products may harm the Company's competitive position[195]. Market and Operational Risks - The company relies on a limited number of third-party contract manufacturers, which poses risks to timely and cost-effective production[206]. - The company is vulnerable to supply shortages and price fluctuations due to reliance on sole suppliers for certain components[209]. - The clinical trial process for regulatory clearances is lengthy and expensive, with uncertain outcomes that could delay new product introductions[219]. - Delays in clinical trials can significantly increase product development costs and may lead to trial failures[222]. - The company may face significant financial and managerial resource allocation if international operational risks materialize[204]. Stock and Shareholder Matters - The company received a notice from Nasdaq on May 31, 2023, indicating that its stockholders' equity was below the minimum requirement of $2,500,000 for continued listing[263]. - Nasdaq granted the company an extension until November 27, 2023, to regain compliance with the Minimum Equity Requirement, contingent upon achieving certain milestones[264]. - On November 28, 2023, Nasdaq determined that the company had not regained compliance, advising that its securities would be delisted on December 7, 2023, unless a hearing was requested[264]. - The company requested a hearing on December 5, 2023, which was held on March 5, 2024, staying any delisting pending the Panel's decision[265]. - On March 20, 2024, the Panel granted the company's request for continued listing, subject to demonstrating compliance with Nasdaq Listing Rule 5550(b) by May 28, 2024[265]. - The company was notified on June 4, 2024, that it had regained compliance with the stockholders' equity Minimum Equity Requirement[266]. - The company is under a "Mandatory Panel Monitor" through June 4, 2025, which could lead to delisting if noncompliance occurs during this period[267]. - On April 11, 2024, the company received a notice regarding noncompliance with the Minimum Bid Price Requirement, as its stock did not maintain a minimum closing bid price of $1.00 per share for 32 consecutive business days[268]. - The company has 180 calendar days from the Initial Compliance Date to regain compliance with the Minimum Bid Price Requirement[269]. - The Company received a notification from Nasdaq on October 17, 2024, granting an additional 180 calendar days to regain compliance with the Bid Price Requirement[270]. - A 1-for-11 reverse stock split was executed on March 3, 2025, and the Company regained compliance with the Bid Price Requirement by March 18, 2025[271]. - As of December 31, 2024, executive officers, directors, and certain shareholders beneficially own approximately 25% of the outstanding shares of common stock, allowing them to significantly influence shareholder matters[281]. - The Company does not intend to pay dividends on its common stock for the foreseeable future, relying on stock price appreciation for shareholder returns[277]. - The Company is classified as a smaller reporting company, which allows it to take advantage of certain exemptions from disclosure requirements, potentially making its securities less attractive to investors[276]. - Future sales of common stock may lead to immediate dilution for existing shareholders, potentially causing a decline in stock price[282]. - The market price of the Company's common stock may be volatile, influenced by various factors including market conditions and strategic alternatives[274]. - The Company is subject to anti-takeover provisions under Delaware law, which may hinder acquisition attempts[280]. - If the common stock is delisted, shareholders could face significant adverse consequences, including reduced liquidity and limited market quotations[272]. - The Company may experience fluctuations in financial results, which could impact stock price and investor perception[275].

Revenue Performance - Total revenue for Q4 2024 decreased by $2.4 million, or 13%, to $15.8 million compared to Q4 2023[6] - Revenue from the United States in Q4 2024 was $10.3 million, down 13% year-over-year, while international revenue was $5.5 million, also down 13% year-over-year[4] - For FY 2024, total revenue decreased by $11.5 million, or 15%, to $64.8 million compared to FY 2023[13] - Revenue for the year ended December 31, 2024, was $64,833 million, down 15% from $76,354 million in 2023[24] - The company expects total revenue for Q1 2025 to be at least $14.0 million[15] Profit and Loss - The operating loss for Q4 2024 was $6.7 million, an improvement from the operating loss of $7.6 million in Q4 2023[9] - Net loss attributable to stockholders for Q4 2024 was $8.0 million, or $11.23 per share, compared to a net loss of $11.1 million, or $20.14 per share in Q4 2023[10] - Adjusted EBITDA loss for Q4 2024 was $6.1 million, compared to an adjusted EBITDA loss of $5.9 million in Q4 2023[10] - Net loss for the year ended December 31, 2024, was $46,971 million, compared to a net loss of $37,050 million in 2023, representing an increase in losses of approximately 27%[26] - The company reported a basic net loss per share of $71.21 for the year ended December 31, 2024, compared to $68.47 in 2023[24] - Net loss for Q4 2024 was $8,016,000 compared to a net loss of $11,150,000 in Q4 2023, representing a 28.5% improvement[29] - For the full year 2024, net loss was $46,971,000, compared to $37,050,000 in 2023, reflecting a 26.5% increase in losses[29] Expenses and Cost Management - Operating expenses for Q4 2024 decreased by $2.1 million, or 11%, to $17.6 million compared to Q4 2023[8] - Operating expenses for the year ended December 31, 2024, totaled $71,490 million, down from $80,476 million in 2023, a reduction of approximately 11%[26] - Finance expenses for Q4 2024 totaled $1,100,000, down from $2,227,000 in Q4 2023, marking a 50.7% reduction[29] - Stock-based compensation expense for the full year 2024 was $1,043,000, down from $1,569,000 in 2023, a decrease of 33.5%[29] - Other adjustments related to restructuring activities for the full year 2024 amounted to $1,020,000, compared to $2,362,000 in 2023, a reduction of 56.7%[31] - Depreciation and amortization for the full year 2024 was $3,889,000, down from $4,115,000 in 2023, reflecting a decrease of 5.5%[29] Debt and Financial Position - The company achieved a 47% reduction in outstanding debt in FY24, decreasing from $74.9 million to $39.7 million[5] - Long-term debt decreased significantly from $70,790 million in 2023 to $31,437 million in 2024, a reduction of approximately 56%[22] - Total current liabilities decreased slightly from $31,159 million in 2023 to $30,287 million in 2024, a decline of about 3%[22] - The company raised $10,064 million in net cash from financing activities in 2024, compared to $6,802 million in 2023, an increase of approximately 48%[26] Asset Management - Total assets decreased from $93,654 million in 2023 to $68,184 million in 2024, a decline of approximately 27%[22] - Cash and cash equivalents decreased from $5,396 million at the beginning of the year to $4,271 million at the end of the year, a decrease of about 21%[26] Other Financial Metrics - Adjusted EBITDA for Q4 2024 was $(6,098,000), slightly worse than $(5,926,000) in Q4 2023, indicating a decline of 2.9%[29] - Full year Adjusted EBITDA was $(21,232,000) in 2024, compared to $(20,263,000) in 2023, showing a 4.8% increase in losses[29] - Foreign exchange loss for Q4 2024 was $980,000, while in Q4 2023 it was a loss of $674,000, indicating a significant increase in foreign exchange impact[29] - Loss on debt extinguishment for the full year 2024 was $11,355,000, compared to $2,040,000 in 2023, indicating a significant increase in debt-related losses[29] Corporate Actions - The company announced a 1-for-11 reverse stock split effective March 3, 2025, and regained compliance with Nasdaq's minimum bid-price listing standard[5]

TORONTO, March 31, 2025 (GLOBE NEWSWIRE) -- Venus Concept Inc. ("Venus Concept" or the "Company") (NASDAQ: VERO), a global medical aesthetic technology leader, announced financial results for the three and twelve months ended December 31, 2024. Summary of Financial Results & Recent Progress: Management Commentary: "Difficulties in the industry persisted in the fourth quarter and impacted our results relative to the expectations we outlined during our third quarter report," said Rajiv De Silva, Chief Executi ...

Financial Results Announcement - Venus Concept Inc. will release its fourth quarter and fiscal year 2024 financial results before the market opens on March 31, 2025 [1] - A conference call will be held at 8:00 a.m. Eastern Time on the same day to discuss the results, including a question and answer session [2] Participation Details - Participants can join the conference call by dialing 877-407-2991 (or 201-389-0925 for international callers) and using access code 13751985 [2] - A live webcast will be available on the investor relations section of the Company's website [2] Replay Information - A replay of the call will be accessible for two weeks at 877-660-6853 (or 201-612-7415 for international callers) with the same access code [3] - The webcast will also be archived on the Company's investor relations website [3] Company Overview - Venus Concept is a global leader in medical aesthetic technology, offering a wide range of minimally invasive and non-invasive products [4] - The Company operates in over 60 countries and has 12 direct markets, with a diverse product portfolio including various aesthetic device platforms and hair restoration systems [4] - Key investors backing Venus Concept include EW Healthcare Partners, HealthQuest Capital, Longitude Capital Management, Aperture Venture Partners, and Masters Special Situations [4]

Core Viewpoint - Venus Concept Inc. announced a 1-for-11 reverse stock split to increase the bid price of its common stock and regain compliance with Nasdaq Capital Market listing requirements [1][3]. Company Actions - The reverse stock split will be effective at 5:00 p.m. EST on March 3, 2025, with trading on a split-adjusted basis starting on March 4, 2025 [1]. - The stockholders approved the reverse stock split at a special meeting on February 14, 2025, with a ratio range from 1-for-5 to 1-for-16 [2]. Stock Adjustments - Every 11 shares of common stock will be reclassified into one new share, with adjustments made to the exercise price and number of shares for outstanding warrants and convertible securities [3]. - The reverse stock split will not affect the number of authorized shares or the par value of the common stock [4]. Fractional Shares - No fractional shares will be issued; stockholders entitled to fractional shares will receive an additional fraction to round up to the next whole share [5]. Exchange Agent - Computershare Inc. has been appointed as the exchange agent for the reverse stock split, and stockholders will not need to take further action for their positions to be adjusted [6]. Company Overview - Venus Concept is a global leader in medical aesthetic technology, offering a broad product portfolio in over 60 countries, including minimally invasive and non-invasive technologies [10].

Core Insights - Venus Concept Inc. announced significant changes to its senior leadership team as part of its ongoing transformation efforts aimed at establishing an optimal management structure for future growth and profitability [5][6]. Leadership Changes - Dr. Hemanth Varghese, President and COO, will leave the company effective March 28, 2025, to pursue other opportunities, while Bill McGrail, EVP of Technical Operations & Compliance, will retire effective February 28, 2025 [2]. - Kirk Gunhus has been appointed as Chief Revenue Officer, responsible for global sales efforts, including direct field force and distributor relationships [3]. - Ross Portaro has been appointed as EVP, Commercial Strategy and Head of Venus Hair, focusing on expanding the Venus Hair business [3]. - Melissa Kang returns as Chief Product Officer, tasked with guiding the company's product vision and innovation [4]. - Michael Mandarello will expand his role as Head of Strategy & Operations, overseeing corporate strategy and operational execution [4]. Strategic Goals - The new management structure aims to streamline decision-making processes and position the company for growth and profitability [6]. - The leadership changes reflect the company's commitment to building a capable team to support future product launches and overall business expansion [6]. Company Overview - Venus Concept is a global leader in medical aesthetic technology, offering a wide range of minimally invasive and non-invasive products across over 60 countries [7]. - The product portfolio includes various aesthetic device platforms and hair restoration systems, supported by prominent healthcare industry investors [7].

Financial Data and Key Metrics - Q3 2024 total revenue was $15 million, down $2.6 million or 15% year-over-year, driven by a 23% decrease in US revenue and flat international revenue [28] - Gross profit decreased $2.3 million or 19% to $9.9 million, with gross margin at 66.1% compared to 69.2% in Q3 2023 [34][35] - Net loss attributable to stockholders was $9.3 million or $1.28 per share, compared to $9.1 million or $1.64 per share in Q3 2023 [39] - Cash used in operations decreased 25% year-over-year to $3.1 million, with a 40% reduction over the first nine months of 2024 [41] Business Line Performance - US system sales saw cash deals increase to 76% of total system sales in Q3, up from 69% last year and 67% in the first half of 2024 [12] - Lease revenue declined 23% year-over-year in the US and 39% overall, reflecting the strategic shift towards cash system sales [12] - International sales to distributors increased nearly 60% in Q3, driven by demand from new and existing partners in APAC and EMEA [9] Market Performance - US market faced macroeconomic headwinds, including customer financing pressures, high interest rates, and tighter credit markets [11] - International markets showed signs of recovery, with sales flat year-over-year and new product registrations in key markets like Australia and India [8][10] - Strength observed in Australia, Mexico, and Hong Kong, while Canada faced similar challenges to the US due to tight credit markets [48] Strategic Initiatives and Industry Competition - Company focused on enhancing cash flow profile, reducing cash used in operations by 25% year-over-year and 40% over the first nine months of 2024 [14][41] - Debt restructuring efforts reduced total debt obligations to $34.6 million, down 25% from June 2024 and 54% from December 2023 [15][40] - New body platform targeting Q1 2025 launch in the US, with regulatory submissions completed and additional features designed to enhance workflow [26] Management Commentary on Operating Environment and Future Outlook - Management acknowledged persistent macroeconomic headwinds affecting the aesthetic capital equipment market, particularly in the US [11][19] - Optimistic outlook for 2025, with expectations of continued demand from new distribution partners and upcoming product launches [10][22] - Company expects Q4 2024 revenue of at least $17 million and targets sustained cash flow breakeven by the back end of 2025 [42][57] Other Important Information - NASDAQ granted an additional 180-day extension until April 7, 2025, to regain compliance with the minimum bid price requirement [17] - New distribution partnerships in India, Taiwan, and Colombia expected to contribute to growth, with potential for increased orders in Q4 2024 [49][53] Q&A Session Summary Question: Prime Program Revenue Mix - Company expects cash system sales to remain in the 70% to 75% range, with in-house financing accounting for 25% to 30% of total system sales [45][46] Question: New Body Platform Details - New body platform is a next-generation energy-based system, not related to the delayed AI.ME program, with a targeted US launch in Q1 2025 [47] Question: International Market Strength - Key markets showing strength include Australia, Mexico, and Hong Kong, with new distribution partnerships in India expected to drive growth [48][49] Question: Revenue Contribution from New Markets - New distributors in markets like India may take a quarter or more to start regular ordering, with potential for increased contributions in Q4 2024 and 2025 [51][53] Question: Demand Environment by Product Category - Higher-priced products, such as the Robot in the hair business, face longer selling cycles due to tight credit markets [55][56] Question: Cash Flow Outlook - Company targets sustained cash flow breakeven by the back end of 2025, with Q4 2024 expected to be a strong quarter for cash flow [57] Question: Debt Reduction Plans - Company continues to work with lender Madryn to reduce debt, with no specific target yet but a focus on maintaining a manageable debt level [59][61]

Financial Performance - As of September 30, 2024, the company reported an accumulated deficit of $300.9 million, up from $261.9 million as of December 31, 2023[185]. - Revenues for the three months ended September 30, 2024, were $15.0 million, a decrease of 14.8% compared to $17.6 million for the same period in 2023[214]. - Net loss attributable to the Company for the three months ended September 30, 2024, was $9.3 million, compared to a net loss of $9.1 million for the same period in 2023[214]. - Total revenue decreased by $2.6 million, or 14.8%, to $15.0 million for the three months ended September 30, 2024, compared to $17.6 million for the same period in 2023[257]. - Gross profit decreased by $2.3 million, or 18.6%, to $9.9 million for the three months ended September 30, 2024, compared to $12.2 million in the same period in 2023[261]. - The net loss for the nine months ended September 30, 2024, was $39.0 million, compared to a net loss of $25.9 million for the same period in 2023[312][313]. - Total revenue decreased by $9.2 million, or 15.7%, to $49.1 million for the nine months ended September 30, 2024, compared to $58.2 million for the same period in 2023[271]. Cash Flow and Liquidity - The company had cash and cash equivalents of $4.5 million as of September 30, 2024, compared to $5.4 million as of December 31, 2023[185]. - Cash used in operations for the third quarter of 2024 was $4.8 million lower, or 40%, than the same period in 2023[226]. - Cash used in operating activities during the nine months ended September 30, 2024 was $7.3 million, representing a 39.9% reduction compared to the same period in 2023[285]. - Cash provided by financing activities for the nine months ended September 30, 2024, was $6,395,000, an increase from $5,531,000 in the same period of 2023[311]. - The company anticipates that existing capital resources will support operations for at least the next 12 months, but there are no assurances regarding future capital raising[304]. Debt and Financing - The company entered into a Loan and Security Agreement on April 23, 2024, providing $2.2 million in bridge financing, with additional delayed draws of up to $3.0 million[201][202]. - Total debt obligations decreased to approximately $34.6 million as of September 30, 2024, down from approximately $74.9 million as of December 31, 2023[285]. - The company issued $26.7 million in Secured Subordinated Convertible Notes with an interest rate of 8.0% per annum, convertible at an initial price of $48.75 per share[287]. - The company executed a $50.0 million Main Street Priority Lending Program Term Loan, which was modified on October 4, 2023[289]. - The company is restricted by covenants in its loan agreements, which may limit its ability to incur additional debt[306]. Revenue Sources and Trends - Approximately 28% of the company's aesthetic system revenues were derived from internal lease programs in the nine months ended September 30, 2024[208]. - For the three and nine months ended September 30, 2024, approximately 23% and 28% of total system revenues were derived from internal financing programs, a decline from 31% and 30% in the same periods of 2023[234]. - Approximately 61% and 59% of total system revenues for the three and nine months ended September 30, 2024, were derived from traditional sales, consistent with the previous year[235]. - Distributor sales increased to approximately 16% and 13% of total system revenues for the three and nine months ended September 30, 2024, compared to 8% and 9% in 2023, reflecting a focus on international growth[239]. Operating Expenses - Adjusted EBITDA loss for the three months ended September 30, 2024, was $5.9 million, compared to a loss of $4.6 million for the same period in 2023[214]. - Selling and marketing expenses are expected to increase but at a rate slightly below revenue growth as the business environment improves[245]. - Selling and marketing expenses decreased by $2.2 million or 9.6% in the nine months ended September 30, 2024, with a percentage of total revenues increasing from 40.1% to 43.0%[276]. - General and administrative expenses decreased by $3.3 million or 10.6% in the nine months ended September 30, 2024, with a percentage of total revenues increasing from 53.1% to 56.3%[277]. - Research and development expenses decreased by $1.3 million or 20.1% in the nine months ended September 30, 2024, with a percentage of total revenues decreasing from 11.2% to 10.6%[281]. Market and Economic Conditions - The global economy has experienced extreme volatility, impacting consumer confidence and economic growth, which poses uncertainty for the company's business[186]. - The company is adapting to macroeconomic challenges, including inflation and rising interest rates, which have impacted customer financing capabilities[226]. Product Development and Strategy - The company launched the Venus Prime program in January 2024, replacing its legacy subscription program, offering competitive financing rates and technology upgrades[209]. - The company is focused on expanding its ARTAS hair restoration business and robotics offerings through the AI.ME™ platform[184]. - The company plans to introduce and commercialize new products, which may increase expenses related to sales, marketing, and research and development[308]. - The company has developed and received regulatory clearance for twelve novel aesthetic technology platforms, including ARTAS and NeoGraft systems[211]. Other Financial Metrics - The allowance for expected credit losses as of September 30, 2024, was $4.1 million, representing 16.4% of gross outstanding accounts receivable, down from 27.3% in the same period of 2023[224]. - The company recognized a $10.9 million non-cash loss due to the extinguishment of $52.1 million in principal under the MSLP Loan Agreement in May 2024[252]. - The company recorded a non-cash operating expense of $20.8 million for the nine months ended September 30, 2024[312]. - The company does not grant rights of return or early termination rights to customers under traditional sales or internal lease programs[238].