Please stand by. Good day, ladies and gentlemen, and welcome to the second quarter 2022 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 recorded and that the recording will be available on the company's website for replay. Before we begin, I would like to remind everyone that our remarks and responses to your questions today may contain forward-looking statements that are based on the current expectations of management and involve inherent risks and uncertainties that could cause actual results to differ materially from those indicated, including those identified in the Risk Factors section of our most recent 10-Q and our annual report on Form 10-K filed with the Securities and Exchange Commission. Such factors may be updated from time to time in our filings with the SEC, which are available on our website. We undertake no obligation to publicly update or revise our forward-looking statements as a result of new information, future events, or otherwise. This call will also include references to certain financial measures that are not calculated in accordance with the generally accepted accounting principles, or GAAP. We generally refer to these as non-GAAP financial measures. Reconciliations of those non-GAAP financial measures to the most comparable measures calculated and presented in accordance with GAAP are available in our earnings press release issued today on the investor relations portion of our website. I would now like to turn the call over to Mr. Domenic Serafino, Chief Executive Officer of Venus Concept. Please go ahead, sir. Thank you, operator, and welcome everyone to Venus Concept's second quarter of 2022 earnings conference call. I'm pleased to be joined today by our Chief Financial Officer, Domenic Della Penna, and Ross Portaro, our President of Global Sales. Let me start with a brief agenda of what we will cover during our prepared remarks. I will start with an overview of our revenue results in the second quarter and a discussion of the initiatives we have implemented to focus our commercial strategy, streamline our global operations, and enhance the cash flow profile of the company. Then Domenic will provide you with a more in-depth review of our quarterly financial results, our balance sheet, and our guidance for full year 2022, which we updated in today's press release. We will open up the call to your questions. With that overview in mind, let's get started with a review of our second quarter revenue performance and overall business trends. We reported GAAP revenue of $27.3 million, up 6% year-over-year. The increase in total revenue year-over-year was driven by 7% growth in sales to U.S. customers and 5% growth in sales to international customers in that period. Total systems and subscription revenue increased 9% year-over-year in Q2, and our procedure-related disposal revenues increased 2% year-over-year, excluding our discontinued NeoGraft revenues from the prior year period as we exited that business in Q4 of 2021. Importantly, our total revenue growth in Q2 was driven by the key franchises we prioritize as part of our commercial strategy we have discussed in recent investor calls. Specifically excluding NeoGraft's program revenue, sales in our growth franchises increased 13% year-over-year in Q2, fueled by continued strong demand for our Bliss MAX following the initial commercial launch in March. Our ARTAS iX robotic system adoption was strong this quarter, posting 58% growth year-over-year on system sales. While we are pleased to see continued strong demand for products in our growth franchise in Q2, our total revenue results were below expectations. We experienced significant sales force disruption in a key U.S. market that had material impact on our results. This was a leadership issue in this key U.S. market, which unfortunately drove regrettable turnover in our sales team and lower sales force productivity in this U.S. market during the quarter. We have since consolidated sales leadership to address this issue and have rebuilt the sales team in this key U.S. market aligned with our core values and our sales strategy. That said, we are very encouraged by the strong results in the rest of the U.S. market in Q2. Our team outside of the market where we had disruption delivered growth in subscription and system sales of 24% year-over-year and continues to build a very strong qualified pipeline. The results validated our enthusiasm heading into the second quarter. We had experienced significant growth in qualified pipeline as we entered Q2, and we are ready to capitalize on the improving operating environment with confidence in our belief that we had the right product portfolio and the right commercial strategy, which had us extremely well positioned for our future success. The softer than expected total revenue in Q2 did not change our level of conviction and commitment to driving improving profitability and enhancing our cash flow profile of our business. In fact, we undertook a comprehensive review of our business and our updated expectations for potential growth and profitability in all regions of the world in which we operate. We have developed a series of strategic initiatives to further enhance the cash flow profile of our business and to accelerate our path to long-term sustainable profitability. These strategic initiatives are already being implemented, and we expect to realize benefits to our cash flow profile in the second half of 2022. The strategic initiatives we are implementing fall into two brackets, a more focused and targeted commercial strategy and streamlining of our global operations. With respect to the more focused and commercial strategy, we will continue to honor our direct sales team in the U.S. with programs and messaging focused on key product lines, including those with meaningful recurring revenue streams. We are prioritizing our cash system sales to maximize the potential profitability and cash flow that our highly differentiated technology should contribute as we address the continued strong demand in the U.S. market. Note we are not shelving our industry-first subscription model. We will continue to offer this differentiated business model for certain products in certain geographic markets going forward. We will, however, bring a more disciplined approach to the subscription model going forward, specifically stricter pricing and credit qualifications to ensure our total company financial results are not overly exposed to fluctuations in the global macro and interest rate environment. We expect these commercial initiatives to result in a material shift in our mix of systems and subscription revenues, and we are targeting more than a 75% system sales to be cash sales in the second half of 2022 compared to 49% in the first half of the year. We have aligned our sales force compensation plan to support this, and we expect the team to fully embrace this important strategic initiative. While the expected shift towards cash sales has an impact on our total revenue expectations for 2022, the improvement in our cash flow conversion in the second half of 2022 justifies our efforts in this area. Now with respect to our efforts of streamlining our global operations, based on comprehensive review of our international markets, we plan on a series of actions that may include closing offices, divesting, reorganizing, and eliminating redundant operations over the balance of 2022. Our growth and profitability objectives in these coming years cannot support unprofitable operations in international markets. While these activities are expected to represent a modest impact on our total revenue results in 2022, it will reduce our operating expenses in the second half of the year and materially reduce our annualized expenses in 2023. As you may recall, we implemented a restructuring of our global commercial footprint in 2020, including divesting our interest in smaller, less profitable international markets and reinvesting those resources in higher opportunity markets like North America and key countries direct in EMEA. Domenic will provide you additional financial detail on these initiatives, as well as additional areas of where we are working to optimize our go-forward operating expense and cash flow profile to support our focus on becoming a sustainably profitable entity in the future. Before I turn the call over to Domenic, I wanted to provide you an update on the progress we are making in the areas of new product development, clinical validation, regulatory clearances, and commercialization. In April, we announced the receipt of a new 510(k) clearance to market the Bliss MAX with an expanded indication for use in new areas of the body and an increased RF energy output. This new clearance further expands our single body contouring workstation's versatility and utility with its indications for use to include non-invasive lipolysis of the back and thighs in addition to the abdomen and flanks. By increasing the maximum RF energy output by 50%, Bliss MAX offers physicians more efficiency and flexibility in treatments which we believe will provide even stronger clinical results and ultimately increase the revenue for our customers. The early market response to Bliss MAX has been notable, and sales of this highly differentiated body contouring workstation have been strong during the initial commercial launch. We continue to expect sales of Bliss MAX in the US and Bliss outside of the US to drive strong contributions to total company growth in 2022. Finally, we are proud of the continued progress we have made in recent months to advance our development, regulatory, and clinical strategy for AI.ME, our non-surgical robotic technology platform for medical aesthetic application. We announced a 510(k) submission for the general indication of tissue excision and skin resurfacing on March 31st and have been engaging with the FDA during their review of our submission. We continue to believe that AI.ME has the potential to bring true innovation to the medical aesthetics market by changing the way procedures are performed and bringing a new level of speed, safety, and clinical predictability to our customers. The prospects for AI.ME are very compelling, and we look forward to introducing this disruptive technology. It is important to remember that AI.ME, the AI.ME platform, excuse me, is just that, a platform that has been designed to support numerous different clinical indications via a unique upgrade path for the clinicians, making it extremely cost-effective and differentiated from any products currently available in the aesthetic device market today. In parallel to the process of submitting for general indication for tissue excision resurfacing, we have also made progress towards the strategy to secure specific clinical indications for AI.ME for treatments on the face. We are pursuing an IDE clinical study evaluating the safety and efficacy of using AI.ME for the treatment of moderate to severe facial wrinkles. We announced first patient treatments in April, and our four investigational sites are busy enrolling and treating 70 patients for this study. This study will support our 510(k) submission for specific clinical indications for treatment of wrinkles in cheeks, which will further expand our annual addressable market opportunity to enhance our long-term growth profile. Now with that, let me turn the call over to Domenic Della Penna, who will provide a detailed review of our second quarter financial results and discuss our balance sheet, financial condition, and our updated 2022 guidance. Domenic? Thank you, Dom. Given Dom's detailed review of our revenue results, I will begin with a review of our financial performance across the rest of the P&L. For the avoidance of doubt, unless otherwise noted, my prepared remarks will focus on the company's reported results for the second quarter of 2022 on a GAAP basis, and all growth-related items are on a year-over-year basis. Gross profit increased $0.3 million or 2% to $19 million. Gross margin was 70% compared to 72.5% of revenue in the second quarter of 2021. The change in gross margin was driven by changes in mix as well as by changes in foreign currencies, which depreciated relative to the US dollar in the period. Total operating expenses were $26.2 million compared to $17.2 million in the second quarter of 2021. The change in total operating expenses was driven by an increase of $6.4 million or 82% in general and administrative expenses, an increase of $0.4 million or 20% in research and development expenses, offset partially by a decrease of $0.6 million or 6% in sales and marketing expenses. In addition, in the three months ended June 30th, 2021, operating expenses included a bad debt recovery of $3.2 million due to a reactivation of accounts impacted by COVID-19, which did not repeat in the three months ended June 30th, 2022. In fact, our GAAP operating expenses include an additional $2 million dollar reserve for bad debt expense compared to what our prior guidance had assumed. The prior year period also included a $2.8 million non-cash gain on forgiveness of government assistance loans which did not benefit our GAAP OpEx in the second quarter of 2022. Excluding the impacts of bad debt expense and recovery in both periods as well as the non-cash gain last year, our non-GAAP operating expenses increased $1 million or 4% year-over-year. We believe this better reflects our efforts to prudently manage our expenses in the current high inflation environment. In addition, we continue to prioritize the strategic investments we are making in support of our key growth initiatives, including our commercial launch of the Venus Bliss MAX and our development, regulatory, and clinical programs for AI.ME. As Dom mentioned earlier, we've implemented a series of initiatives to streamline our global operations, reduce our operating expenses, and improve our cash generation. While these initiatives are intended to enhance our multiyear financial profile, we expect to realize early benefits of these activities in the second half of 2022. Specifically, by prioritizing cash system sales, we significantly improve cash flow in the second half while minimizing the economic risks we face in this high inflation setting. We now expect GAAP operating expenses of approximately $95 million-$97 million for the full year 2022 compared to our prior guidance, which had assumed GAAP OpEx in the range of $98 million-$101 million. Returning to a review of our second quarter financial results, total operating loss was $7.1 million compared to income of $1.5 million in the second quarter of 2021. Net loss attributable to stockholders for the second quarter of 2022 was $10.6 million or $0.16 per share compared to net income of $0.4 million for the second quarter of 2021. Adjusted EBITDA loss for the second quarter of 2022 was $5.5 million compared to adjusted EBITDA of $0.5 million for the second quarter of 2021. As a reminder, we have provided a full reconciliation of our GAAP net loss to adjusted EBITDA loss in our earnings press release. Turning to the balance sheet. As of June 30th, 2022, the company had $10.5 million of cash and cash equivalents, and total debt obligations of approximately $77.5 million compared to $30.9 million and $77.8 million, respectively, as of December 31st, 2021. Cash used in operations for the six months ended June 30th was $19.8 million, which is flat compared to the prior year period. As discussed on our recent calls, the use of cash to date is directly related to our strategic initiative, which prioritized investments in inventory and advances to suppliers to ensure our ability to meet customer demand as we move through 2022, given the realities of ongoing supply chain challenges. We continue to expect improved working capital trends as we move through 2022. Turning to a review of our updated guidance. As detailed in our press release, we updated our revenue guidance for the full year 2022 period. The company now expects total revenue for the twelve months ending December 31st, 2022 in the range of $110 million-$113 million, representing an increase of approximately 4%-7% year-over-year compared to total revenue of $105.6 million for the twelve months ended December 31st, 2021. For modeling purposes, we would like to offer the following considerations to help investors understand the underlying assumptions driving our 2022 growth and profitability targets. First, our updated total revenue range reflects the following. The largest driver of the change in our guidance range, representing roughly two-thirds of the total revision, comes from our strategic initiative to drive more cash flow from the sale of our systems, specifically in shifting our revenue mix towards cash sales versus subscription sales. As Dom mentioned earlier, while the expected shift towards cash sales has an impact on our total revenue expectations for 2022, the improvement in our cash flow conversion in the second half of 2022 justifies our efforts in this area. The remaining one-third of the revision to our 2022 revenue guidance range comes from the combination of the softer than expected sales results in the second quarter and the impact of our strategic initiatives to streamline our global operations, specifically the transition from a direct to distributor-based sales model in certain international markets during the second half of 2022. With respect to the updated assumptions supporting our P&L expectations for 2022, we now expect gross margins of approximately 67% compared to 70% in 2021. The year-over-year change in gross margins continues to reflect impacts from changes in mix as well as the inflationary headwinds discussed on our prior calls. Our updated gross margin range also includes the impact of changes in exchange rates compared to the prior year period. We now expect total GAAP operating expenses of approximately $95 million-$97 million, representing growth of 7%-9% year-over-year, compared to our prior guidance range of $98 million-$101 million. The revised GAAP operating expense range reflects the incremental bad debt expense realized in Q2 2022, which was not contemplated in our prior guidance range, and continued prudent expense management of our expenses in order to prioritize the strategic investments we are making to support our key growth initiatives. It also reflects the early benefits of the strategic initiatives we have implemented to streamline our global operations, which we estimate together represent roughly $5 million-$6 million of savings over the second half of 2022. Importantly, these initiatives were designed to enhance our multiyear financial profile, and thus, we expect to realize approximately $10 million of GAAP operating expense reduction on a full year basis in 2023. We now expect interest expense of approximately $4.5 million compared to $4 million previously, driven by higher interest rate assumptions on our variable rate debt. There are no material changes to other modeling considerations we shared on our last earnings call. We continue to expect non-cash D&A of $4.5 million, non-cash stock comp of approximately $2.4 million, and weighted average shares outstanding to be approximately 64 million. Finally, our updated total revenue guidance range for the full year 2022 includes the assumption that third quarter total revenue will be in the range of $24 million-$25 million. With respect to our efforts to secure non-dilutive financing, we are in discussion with potential partners interested in the more than $73 million of current and long-term trade receivables on our balance sheet. By way of reminder, current subscription agreements are reported as part of accounts receivable on our balance sheet each quarter. These accounts receivable do not bear interest and are typically not collateralized. We believe the potential cash infusion from a factoring agreement represents an attractive non-dilutive financing option for the company. With that, operator, we will now open the call to your questions. Operator? Thank you. If you'd like to ask a question, please signal by pressing star one on your telephone keypad. If you're using a speaker phone, please make sure your mute function is turned off to allow your signal to reach our equipment. We do ask that you please limit yourself to one question and one follow-up question. If you would like to ask additional questions, we invite you to add yourself to the queue again by pressing star one. Our first question will come from the line of Jeffrey Cohen with Ladenburg Thalmann. Please proceed with your question. Oh, hi, Dom, Dominic, and Ross. How are you? Good morning, Jeff. We're good. Good morning. So, um- Good morning. I guess first question is, could you dive in a little bit on the sales force disruption? It was one geography within the U.S. representing what percent of the U.S. and how many individuals, and where are you on the, as far as advancing a new sales force into that territory? Yeah. No, hold on, Ross. Just for competitive reasons, we're not gonna get into the specifics of the geography. We will say that we were disappointed with the leaders didn't really fit with, you know, sort of the direction and the consistency in the company's desires to continue to grow the business. It did impact a number of sales reps. Once we identified this issue, it was unfortunately late in the quarter, and it did significantly impact the overall performance of that particular region. Now, that said, I think it's really important to identify that the team outside of this particular market did show a very significant 24% year-over-year growth and has continued to build a very strong pipeline. The leadership that was running that particular region has now been homogenized, if you will, over the entire U.S. territory, and we feel very comfortable based on where we are right now. With the team. I'm happy to say that the majority of the team that exited during this very difficult period of time has been replaced in the region, and we do feel comfortable as we go forward that these individuals will get their feet under them and will be able to contribute certainly in the back half of 2022. Okay. Got it. Can you talk a little bit about supply chain challenges? It looks like your margins for the second quarter held up rather well and but it sounds like you do have some challenges in the back half. Could you talk to us a little bit about what's going on out there and why it didn't impact Q2, but you expect it to impact the latter part of the year? Sure. Sure. DP will handle that. Jeff, what we're anticipating in the second quarter is, Second half. Sorry, the second half is more of the same in terms of FX. We had a roughly $1 million FX impact in Q2 with most major currencies depreciating vis-a-vis the U.S. dollar. We expect that to continue and the impact of exchange is worth about 100 basis points. In addition, we expect inflation to have an impact of between 80 and 100 basis points. Then thirdly, we're expecting mix to have an impact of between 100 and 120 basis points. That collectively is about 300 basis points relative to the 70% we experienced in Q2. Now I can offer the additional insight in relation to the cash versus subscription split. We pulled down our revenue guidance in the second half, but that guidance has not necessarily been pulled down for the hair side of the business. The Artas side in particular is not impacted because that's a fully cash business anyway. Because Artas have slightly lower margins than the subscription side of the business, when you pull the one lever down, and you hold the Artas side, which is still continuing to perform very strong, that's where you get a slight bit of mix impact of approximately 100 basis points. Then the balance is inflationary impacts, which to date we know we've managed pretty well. You know, that sort of is how we're looking at it and how we've hedged in the second half. Okay. Domenic, the $3.2 million bad debt recovery is reflected where? The $3.2 million relates to a bad debt expense recovery that we experienced in the second quarter of 2021, which did not repeat in the second quarter of 2022. It was a one-time benefit because when we experienced the dramatic COVID shutdown in 2020 and 2021, a lot of our customers stopped paying, and then we were able to reactivate those customers. Many of them were reactivated in the first half of 2021, and in particular in Q2, we realized a bad debt expense recovery with the activation of several hundred accounts. That is a one-off benefit in Q1 of 2021, whereas in Q2, we actually experienced some negative impact on the bad debt side. Instead of a recovery, we ended up booking about $2 million more than we would normally book. Okay. Perfect. That does it for us. I'll jump back to you. Great. Thank you. Thank you. Our next question has come from the line of Marie Thibault with BTIG. Please proceed with your questions. Good morning. Thanks for taking the questions. I understand the shift to prioritize cash sales and help your cash flow profile, but I wanted to hear a little bit about what you're seeing on patient demand and appetite for discretionary spending. I'm trying to dig into customer willingness to pay upfront for a system at a time that we're hearing a lot more pressure on the CapEx environment. Any commentary there would be helpful. Yeah, look, I think that there's ebbs and flows, Marie, and good morning. I think overall, the thing that we're really focused on right now is, you know, we spent the first 12 years of the company's life focusing a lot on promoting the, you know, the differentiated subscription model. The impact that moving to cash versus subscription is more based in our marketing efforts than it is the realities of the market demand. Our pipeline has grown exponentially in the last 30 to 60 days, and we feel very good about that. And especially, or sort of, following the performance of the region in the U.S. that grew 24%, we don't see a real slowing down per se, of demand. Now, having said that, there's always the credit challenges and risks associated with, you know, dealing with third-party lenders. To this point, and it's early, we have not really seen any issues there. As far as patient traffic, based on our IoT data that we see on a routine basis, I can tell you that patient activity has consistently outperformed pre-COVID trends into clinics around the world. I think that this is more, for us anyway, an issue of getting our sales reps, you know, right-sized in terms of, you know, their messaging and what they focus on day in and day out when they talk to our customers, and taking full advantage of the significantly increasing pipeline, especially in our hair franchise and in our body franchise. Okay, that's very helpful, Domenic. Thank you. I'll ask my follow-up here on the, you know, cash flow conversion improvements expected in the second half. Is there any way you can sort of quantify for us, as we think about that cadence, in cash flow improvement? Do you care to give any updates on a goal of reaching cash flow positive? I recall that was previously Q4. I don't know if that's, you know, that goal has been updated. Thank you. Marie, we're expecting that the conversion to, you know, previously we said that we'd be cash flow positive in the fourth quarter. We're still on that track with this conversion. In fact, you know, we expect that a good proportion of those subscription sales will in fact convert to cash, but not all of them. When we pull down our guidance, we've referenced that approximately, you know, two-thirds of that impact is related to this shift. Based on early results and, you know, thus far almost to the midpoint of August, we're in line with those expectations as far as that trajectory to convert over from subscription to more cash deals, which doesn't mean we're abandoning subscription. We feel that the combination of that incremental cash that previously was not in any of our plans will be a cash benefit to us in the second half. The other reminder is that we continue to have $73 million of receivables on our books that will continue to pay, even though we're de-emphasizing the subscription business. In effect, you have the benefit of the previous model continuing to pay dividends in the form of an annuity, and then you've got this cash conversion of new deals that are coming in which were never anticipated. This is the fundamental shift in benefit that we're gonna have over the next year and a half, before that $73 million starts to really dwindle down. We're looking at this inflection point as being, you know, a substantial pivot in the business that will significantly help us. We don't wanna give any specific cash targets at this point. Okay. Understood. I'll get back in queue. Best of luck. Thank you, Marie. Thank you. Our next question has come from the line of Jonathan Block with Stifel. Please proceed with your questions. Great. Thanks, guys. Good morning. Good morning, Jonathan. Domenic, the first question is the emphasis on the cash sales. I guess maybe a couple questions to that. You know, are there concerns about, call it, further sales force disruption with the change in strategy, you know, that might necessitate a different type of rep or just a change in behavior? I would think the subscription model is what's really needed in this type of environment. You know, it just gives the docs a little bit more flexibility. I know you're not abandoning, as you said several times, but you're arguably de-emphasizing. Maybe if you could just talk to that. Should we be concerned about further sales force disruption with this move? Why this move, if that gives the docs a little bit more of a flex, if you would, in proceeding with a purchase in this type of uncertain environment? Now I got a follow-up. Yeah, no, it's a great question, John. Look, I think that there's multiple parts to this answer. First of all, we don't believe that it's gonna have any material impact on the sales force that leaves. We have done a very good job, and Ross can elaborate on this a little bit more, you know, sort of replacing the individuals that left because of the challenges we had in one region. Having said that, this is the right time for us to do this for a few reasons. Number one, as we continue to develop our robotic technologies and so on, that are gonna be focused predominantly in the core market of dermatology and plastic surgery, it is more important that we focus our energies on how we compete on the technical advantages of our technology versus the ROI, which essentially was the primary focus when we talk about the subscription model in the past. It's not as important to the core audience as it is to the non-core or med spa market, where we were, you know, very, very strong for many years. We think that the ability to keep both programs in play will give us the ultimate flexibility in being able to start with the conversation related to a traditional cash transaction like everybody else that we compete against, and basically leveraging what we believe to be best-in-class technologies, and we prove that day in and day out when we do competitive side-by-side evaluations with our competitive products. At the same time, be able to look at customers, for example, it might be a new physician that is just opening a practice, and they don't necessarily have a credit history with a third party that will be beneficial to them, but we have the option and total control and apply certain disciplines that quite frankly were not there in the past when it relates to when we offer the subscription model and we don't. By doing this, we think that we're in control of our own destiny as it relates to cash on balance sheet and ensuring that, you know, we don't find ourselves in a situation where we have to go out and dilute any further. We've made this shift keeping in mind, you know, the possible outcomes, not only for the company but for our shareholders as well. Got it. Very helpful. Maybe just to pivot a little bit, without a pipeline update, for AI.ME, are the 12 patients done, I guess, in the first part of the pivotal, and has that been submitted to the FDA? Any update on the Freedom timing or expectations? Then DDP, maybe just to build on the prior question around cash flow. You know, previously you said positive cash flow in 4Q 2022, which was, I think Street was around $39-$40 million. Are there just ways to think on, you know, a new revenue top line and how that shakes out with some of the, you know, the OpEx streamlining and the move to more cash sales? Thanks, guys. Okay. On the AI.ME update, we are in the final stages of completing phase one of that clinical trial. As you may recall, there is a waiting period between the last treatment and the time in which we measure and then submit to the FDA. We do expect that phase, that trial. Well, first of all, the first submission, as we mentioned in our prepared remarks, we are waiting for the FDA to come back to us with a general clearance on the AI.ME. You know, we're well down the road. We continue to communicate with them as to, you know, when we expect that clearance, and hopefully that should be sooner rather than later. Having said that, the patient trials continue. The FDA did ask us to do the first 12 patients and then submit. We are almost complete with that, and then we have a timeframe that we need to wait before we can submit that data. That should happen before the end of the year. We do expect to be re-engaged with the balance of the treatments and so on in early part of 2023 with a full commercial release later in the year. Just let me be clear. Full commercial release later in the year with an on-label specific indication for the face. We do expect a general clearance that will allow us to commercialize this product later this year in a limited fashion. Does that make sense, Jonathan? It does. Sorry. I was just gonna ask anything that made a lot of sense. Anything on Freedom or the cash flow? Thanks though. Yeah. We just, as part of the restructuring, Jonathan, and you know, we took a long, hard look and we're quite objective. At this point, I think we're gonna, as we streamline some of our product offerings, the Freedom category is a good one. It's just not one that we can focus resources on at this point because it is, as you know, a differentiated market. We made a commitment that when we do go there, it's gonna be for predominantly the OBGYN community. We made a strategic decision at this point to focus on, you know, what we're doing really well at this point. We look at a variety of different alternatives on how to bring that product to market, but not necessarily in a direct way, you know, maybe through a third party. At this point, we are not pursuing moving that project forward simply because we wanna focus on, you know, what's real for today and what's gonna drive the maximum return for us in the short to midterm, and then we'll revisit that particular project. Dom, do you wanna answer the second part of Jonathan? Hey, Jonathan, can you just reiterate yours? 'Cause it you had a lot in there. Would you mind just reiterating the question? Sure, DDP. No, you're right. I tried to pack a lot in there. I was just sort of going that the prior guidance said, you know, cash flow positive in 4Q, and I think the street or we were around that $39-$40 million number. Just even at a high level, I'm trying to rethink, you know, with some of the OpEx coming down and the move to more cash sales, I'm guessing the top line requirement to reach cash flow positive wouldn't be quite as high. Are there any sort of benchmarks or thoughts that you can point in and around that thought process? Thanks. Yeah. We've guided the full year, $110 million-$113 million, and then for Q3 in and around the $24 million-$25 million range. If you do that math, you're sort of left with the difference, which is in the lower end of the 30s for Q4 based on that guidance. You know that combined with the OpEx cuts that we're making in the second half of between $5 million and $6 million should render us you know profitable in that fourth quarter based on $32 million of revenue and our gross margins in around 67%. That's what we're guiding. You know, that's what we're aiming for. In addition, in 2023, the annualized impact of those of the restructuring savings amounts to about $10 million in that year. That'll put us in a much better position in 2023, notwithstanding that we're calling down the revenues for this year based on the shift in subscription being more geared towards cash without necessarily abandoning subscription. Very helpful. It's a combination of the cash shift as well as the- Yep. OpEx cuts and refocusing the business. Yep, that's where I was going. Perfect. Thanks, DDP. You're welcome. Thanks, Jonathan. Thank you. As a reminder, if you would like to ask a question, please press star one on your telephone keypad. Our next question comes from the line of Anthony Vendetti with the Maxim Group. Please proceed with your questions. Thanks, and good morning. Hey, good morning. Good morning. Good morning, guys. Good morning, Domenic. Good morning, Dom. So just following up on the little bit of a strategy shift. Can you talk a little bit about ASPs? Are they holding up in this environment or, especially if you shift to a cash and I know it's not pure cash, but if you're offering the cash alternative or pushing that, are you expecting ASPs to come in a little bit? Just talk a little bit about that. Then obviously in this environment, you know, we could see some pullback. We go back to the financial crisis, 2007, 2008, you know, to 2009. We did see, you know, revenue start to fall off, in some cases, pretty dramatically. You know, how do you navigate through this if we do fall into a recession? What's your strategy or plan? Okay, let me answer the second part of the question, and then I'll let DDP answer the first part, if that's okay, Anthony. Sure. I started this company in 2009, 2010, and the business model that we had put in place was to protect the opportunity at the customer level by offering the subscription model. This is the main reason why we are not abandoning the subscription model. If you remember, in 2007, 2008, 2009, there was an interesting phenomenon that occurred. You're absolutely right, that the device business did dry up, and there was a significant amount of pressure on pricing, et cetera. That was predominantly based on the fact that lenders were not lending. If they did lend, it was really, you know, in a very small part of the market and with all sorts of bells and whistles in terms of guarantees, et cetera. What was interesting in that time period is that the patient traffic was pretty level, and in fact, in some jurisdictions, actually continued to increase. People wanted to feel better during bad times, et cetera, et cetera, and they took advantage of disposable income that they did have, especially as you look at today's market, where, you know, the job market is actually pretty robust. We're not seeing any of that impact at the street level with the consumer to the clinic. We do maintain the right to continue to have the subscription model in play. The only difference is that now we have a very specific way that we are going to the market with a cash first conversation based on technology you know, benefits compared to our peers. If the customer is in a situation that falls into one of the buckets of new clinic or whatever the case may be, we have the ability to still leverage that customer. Instead of losing them, we have an alternative to go to which our competitors do not offer, and quite frankly, are afraid to offer because they don't really wanna stand behind the consistency of the technology's ability to generate revenue for the you know, the three-year period in which we run our subscription model versus you know, traditional leases. DDP, do you wanna touch on the other stuff? Anthony, on the ASP side, in the second quarter, our ASPs by device actually held up very well. In fact, on the Artas side, we were actually slightly above our own internal targets on ASPs. Where we have the challenge is that, for rest of world, where we've got currency impacts, although the ASP in local currency in markets like Spain and Germany et cetera, or the Euro, when we convert to US dollars, that's where we get hit on the ASP side. On local currencies, we're holding, but we're not able to get that extra bit to offset the currency impact which we estimate to be about 8% on rest of world in Q2. We've modeled that 8% in the second half, which causes a bit of the margin compression that I spoke about earlier. Anthony, there is one other thing to consider here as well. As we take a look at some of the non-performing OUS markets, we will be converting from direct operations to distributor operations, and that by itself has a bit of an impact on the ASPs because we're selling to distributors at obviously lower pricing. You know, these are modest shifts, but to DDP's point, we've been able to maintain pretty consistent ASPs across the product portfolio, especially in North America. Okay, great. Just lastly for DDP, one of the things mentioned in the press release was, you know, you're exploring non-dilutive financing. Maybe just talk about what's available to you at this point and what type of non-dilutive financing if you were to seek that, what it may look like. Yeah, I mean, we can't say much on that front, Anthony, but there are many forms of the non-dilutive financing. Clearly, one of the key opportunities we have is to leverage the significant receivables balance between long-term and current receivables of over $70 million. That's obviously an area that we're looking closely at and pursuing. But there are also other opportunities for non-dilutive financing, be it partnerships, et cetera. These are very active things that are ongoing. In addition to our restructuring plan, you know, we're feeling pretty good about where we're headed. Anthony, the only thing I'll add to that is you know, we do have a few opportunities that we're exploring that could bring, to DDP's point, some very strategic partnerships to help develop certain categories, especially in the robotics area, on behalf of these entities. That would represent you know, call it a cash injection that would be non-dilutive. Okay, great. That's helpful. Thanks. Thanks, guys. Appreciate it. Our pleasure. Thank you. We are currently showing no additional participants in the queue. With that does conclude our conference for today. Thank you for your participation. Have a great weekend. Thanks, everybody. Thank you. Thank you.