And so that’s the nature of the conversations. I think that plays well for us, because we’re ramping up our support initiatives for our customers through Q1 and Q2. Now on the other hand, we’ve rolled out a new business model. And that involves a capital purchase of the machine. And I think people are also taking their time to assess, well, are they ready to purchase? Do they want to purchase? Or are they comfortable with the lease model or do they want to return the machine. So it’s going to take a few quarters for this to play out. But the key, it really all comes back to, can we alongside our customers, identify the pathway for them to integrate AviClear successfully and make it a solid part of their business. And so that’s what that exactly what we’re focused on here in the first-half of the year, and we’re feeling good about the conversations as well as our plans, I think our plans are on target with what we’re hearing the express need from the customer base.
Unidentified Analyst: That’s great. Thank you so much. I guess just one more follow-up. I know this year doesn’t expect any improvement in the macro environment. I guess given that, are you — what are you hearing from physicians on whether they do like the purchase model versus the rental model for those centers that already have for AviClear?
Taylor Harris: Well, I think that in general, accounts are more familiar with the purchase model. And for sure, over time, if they are able to ramp utilization, then it makes a lot of sense for them, and they get that. There are some — this is not a universal sentiment. There are some who think that the — actually, the rental model was innovative and maybe that works for them. So this is — it’s not all or nothing — but I’d say the majority would express a preference for the purchase model. However, they — the big question for them, especially for the ones who have been very low utilizers is hey, what’s it going to take for me to make this a real part of my overall practice. And so that’s why while the business level, I’d say is important and it’s a necessary part of long-term success.
It’s most important right now that we’re working hand-in-hand with the customers to help them figure out how to integrate AviClear and grow utilization. So that’s what we’re focused on primarily.
Unidentified Analyst: Got it. Thank you so much.
Operator: Our next question comes from Jennie Tsai of Gabelli Fund. Please go ahead.
Jennie Tsai: Hi, thanks for taking my question. What are your thoughts or plans to address the maturities on the converts that are coming up in 2026 and beyond?
Taylor Harris: Hi, Jenny. Good to hear from you. So yes, we — just to speak up for a few minutes about our convertible debt. We have 3 tranches of convertible debt. The first one is about two years away, that’s March of 2026. And then the others are 2028 and 2029. And the 2026 is the smallest. It’s about $70 million of face value. So we don’t have specific plans right now. We’re focused primarily on running the business and all the priorities I talked about on the call. But we do want to address our capital structure, and we believe that we’ll have options to do that. And so yes, I think that’s something that we will be working on, especially after we get our — all these important AviClear initiatives well underway.
Jennie Tsai: Great, thanks for the update.
Taylor Harris: Thanks, Jennie.
Operator: This concludes the question-and-answer session. I would like to turn the conference back over to Taylor Harris for closing remarks.
Taylor Harris: Great. Thank you. In closing, I’ll just reiterate our excitement for our mission and for the opportunity that we have to deliver on these priorities: operational excellence, building a global franchise with AviClear and bringing new energy to aesthetics. So thanks to the Cutera team for your passion and dedication. And thanks, everybody, for joining us today. Have a great evening.
Operator: This concludes today’s conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.
