Content analysis
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Legalese | ||
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H.S. sophomore Avg
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New words:
AVI, cease, disaggregated, DUO, expenditure, instructed, investigation, Ireland, listed, luminary, macroeconomic, moved, officially, ownership, past, reclassified, Repblic, Republic, vendor, warranted, Zealand
Removed:
absorption, accrue, accumulate, advanced, advisory, affirmative, American, annum, approval, ASP, assumed, assumption, attend, AVICARE, borrowed, clearance, commitment, compliance, COOLGLIDE, currency, declare, derivative, distributing, dominated, drawn, earn, earning, enable, enter, Europe, exposed, exposure, extinguishment, FDA, FDIC, floating, generate, good, guarantee, headcount, implement, incur, instrument, invested, lower, loyalty, maximum, mild, MYQ, nonperformance, noted, percent, permit, Prime, production, qualified, qualifying, reached, recovery, release, remove, requirement, restrict, reward, sell, sensitivity, solution, speculative, standing, ticket, unused, updated, VANTAGE, volume, weakening
Financial report summary
?Competition
Hologic • Viveve Medical • STRATA Skin Sciences • Medifirst Solutions • Soliton • Abbvie • Sientra • Allergan • Pulse Biosciences • InmodeRisks
- The success and continuing development of the Company’s products depends, in part, upon maintaining strong relationships with physicians and other healthcare professionals.
- The Company recently launched AviClear, an energy-based solution for the treatment of Acne and can provide no assurance that the device will be widely adopted by customers or their patients.
- The aesthetic equipment market is characterized by rapid innovation. To compete effectively, the Company must develop and/or acquire new products, seek regulatory clearance, market them successfully, and identify new markets for the Company’s technology.
- The Company's products and its operations are subject to extensive government regulation and oversight in the United States. If the Company fails to obtain or maintain necessary regulatory clearances or approvals for its products, or if approvals or clearances for future products are delayed or not issued, it will negatively affect its business, financial condition and results of operations.
- The Company's business could be negatively affected by litigation initiated by potential actions of activist stockholders.
- If the Company fails to maintain or renew any of its distribution agreements before they expire, its revenues and cash flows may be adversely affected.
- To successfully market and sell third-party products internationally, the Company must address many issues that are unique to the related distribution arrangements, which could reduce the Company’s available cash reserves and negatively impact the Company’s profitability.
- Adverse developments affecting the banking industry, such as actual events or concerns involving liquidity, defaults or non-performance, could adversely affect the Company's operations and liquidity.
- The Company's cash, cash equivalents and marketable securities could be adversely affected by the failure of SVB or other financial institutions.
- The Company’s ability to access credit on favorable terms, if necessary, for the funding of the Company’s operations and capital projects may be limited due to changes in credit markets.
- From time to time the Company may become subject to income tax audits or similar proceedings, and as a result the Company may incur additional costs and expenses or owe additional taxes, interest and penalties that may negatively impact its operating results.
- The Company may be adversely affected by changes in U.S. tax laws, importation taxes and other changes that may be imposed by the current administration.
- Changes in accounting standards and estimates could have a material adverse effect on the Company’s results of operations and financial position.
- The Company offers credit terms to some qualified customers and also to leasing companies to finance the purchase of its products. In the event that any of these customers default on the amounts payable to the Company, its earnings may be adversely affected.
- If the Company cannot obtain and maintain Medical Device Regulation approvals, the Company will not be able to sell its products in the European Union.
- Any defects in the design, material or workmanship of its products may not be discovered prior to shipment to customers, which could materially increase its expenses, adversely impact profitability and harm its business.
- The Company's products may in the future be subject to product recalls that could harm its reputation, business and financial results.
- The results of the Company's clinical trials may not support its products claims or may result in the discovery of adverse side effects.
- Product liability suits could be brought against the Company due to a defective design, material or workmanship or misuse of its products and could result in expensive and time-consuming litigation, payment of substantial damages and an increase in its insurance rates.
- Servicing the Company’s debt, including the notes, may require a significant amount of cash, and the Company may not have sufficient cash flows from its business to pay its indebtedness and the price of its common stock may suffer as a result.
- The Company may not have the ability to raise the funds necessary to settle conversions of the notes in cash or to repurchase the notes upon a fundamental change, and its future debt may contain limitations on its ability to pay cash upon conversion or repurchase of the notes.
- The conditional conversion features of the notes, if triggered, may adversely affect the Company's financial condition and operating results.
- Transactions relating to the notes may affect the value of the Company’s common stock.
- The Company is subject to counterparty risk with respect to the capped call transactions.
- Anti-takeover provisions contained in the Company's amended and restated certificate of incorporation and amended and restated bylaws, as well as provisions of Delaware law, could impair a takeover attempt.
- The Company's business could be negatively affected by activist shareholders.
- If securities or industry analysts do not publish or cease publishing research or reports about the Company, its business, its market or its competitors, or if they adversely change their recommendations regarding the Company's common stock, the market price and trading volume of its common stock could decline.
- The Company does not expect to declare any dividends on its common stock in the foreseeable future.
- If the Company fails to maintain compliance with the listing requirements of the Nasdaq Global Select Market, the Company may be delisted and the price of the Company's common stock and the Company's ability to access the capital markets could be negatively impacted.
Management Discussion
- The timing of the Company’s revenue is significantly affected by the mix of system products, training, consumables and extended service contracts. The revenue generated in any given period is also impacted by whether the revenue is recognized over time or at a point in time. For an additional description on revenue, see Note 1 in the notes to consolidated financial statements on the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and Note 7 to the unaudited condensed consolidated financial statements included in Item I, Part 1 of this Quarterly Report on Form 10-Q.
- Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for promised goods or services. The Company’s performance obligations are satisfied either over time or at a point in time. Revenue from performance obligations that are transferred to customers over time accounted for approximately 14% and 11% of the Company’s total revenue for the three months ended March 31, 2024 and 2023, respectively. Revenue recognized over time relates to revenue from the Company’s extended service contracts and marketing services. Revenue recognized upon delivery is primarily generated by the sales of systems, consumables and skincare.
- The Company’s total net revenue decreased by $15.7 million, or 29%, in the three months ended March 31, 2024, compared to the same period in 2023. This decrease was primarily driven by a $10.3 million decline in Systems revenue, as well as a $1.8 million decline in Consumables revenue, and a $3.9 million decrease in Skincare revenue due to the early termination of distribution agreement on the Company's Japanese Skincare business.