Myomo Inc.

Good morning, and welcome to the Miami, Inc., fourth quarter and full year 2022 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal conference by pressing the star key, followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one in your telephone keypad. To withdraw your question, please press star, then two. Please note this event is being recorded. I'd like to turn the conference over to Kim Galditz.

Please go ahead. Thank you, Operator, and good morning, everyone. This is Kim Galditz with LHA. Welcome to the MIOMO fourth quarter 2022 conference call. Earlier today, MIOMO issued a news release announcing financial results for the three months and year under December 31st, 2022. If you would like to be added to the company's email distribution list to receive future announcements, Please register on the company's website at myomo.com or call LHA in New York at 212-838-3777 and speak with Carolyn Curran. With me on today's call from myomo are Paul Godonas, Chief Executive Officer, and Dave Henry, Chief Financial Officer. Before we begin, I'd like to caution listeners that statements made during this conference call by management, other than historical facts or forward-looking statements, The words anticipate, believe, estimate, expect, intend, guidance, outlook, confidence, target, project, and other similar expressions are typically used to identify such forward-looking statements. These forward-looking statements are not guarantees of future performance and may involve and are subject to certain risks and uncertainties and other factors that may affect myeloma's business, financial condition, and operating results. These and additional risks, uncertainties, and other factors are discussed in MIOMA's filings with the Securities and Exchange Commission, including the Form 10-K for the year ended December 31, 2022, which is expected to be filed today, and subsequent filings. Actual outcomes and results may differ materially from what's expressed in or implied by these forward-looking statements. Except as required by law, MIOMA undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this call. It is now my pleasure to turn the call over to MIOMO CEO, Paul Godona. Paul, please go ahead.

Thanks, Kim, and good morning, everyone, and thanks for joining us. I'll start my remarks with a brief review of our fourth quarter results, then discuss how the changes we implemented over the past year have had a positive impact on the business, followed by a look forward to the opportunities in 2023. Revenues in Q4 2022 were $4 million, which is in line with our expectations. And during the quarter, we added nearly 400 new MyoPro candidates to the pipeline, a 75% increase compared with the fourth quarter of 2021, despite marketing competition from the elections and the holidays. We ended the year with a record number of patients in the pipeline, over 1,150. who are interested in obtaining a MyoPro and who have cleared our medical screening, meaning they are appropriate candidates for the device. Early in 2022, we shifted some of our advertising dollars from social media to television for the first time. I'm pleased to report that this approach to educating patients and their families about the MyoPro is working. Our call center in Texas is processing these inquiries, and our cost per pipeline ad has gone down by about 50% from its peak back in 2021. Private revenues for 2022 grew by 5%, which reflected the size of the pipeline going into the year. As we stated in previous calls, the pipeline is a good leading indicator of future revenue. We had challenges growing the pipeline back in 2021 due to Apple's privacy changes and experienced increased costs of marketing as the pandemic was waning and more consumer-oriented companies restarted advertising on social media. Our overall pipeline was up 43% at the end of 2022, reflecting this new media mix. And at the end of the year, we completed a comprehensive review of our MyoPro insurance reimbursement, and we made the decision only to serve patients who had health insurance plans with a history of covering the cost of the MyoPro. As you may recall, We had put in the effort to win MyoPro cases with new payers, and while we had some success, the resources to do so just didn't justify the results of revenue created from those efforts. So in January of this year, we reduced our workforce related to these reimbursement activities, and have since focused on patient cases with payers who have recognized the value of the MyoPro for their beneficiaries. We also adjusted our patient pipeline and informed several hundred candidates that we are not going to pursue reimbursement for them at this time. That brought down the pipeline to 794 candidates with good insurance as of December 31, 2022. In 2022, we generated authorizations and orders for approximately 10% to 15% of the patients in our starting pipeline in any given quarter. Assuming the reimbursement landscape does not change materially, we expect a higher authorization rate in 2023. When we compare the quality of the pipeline at this time with the payer mix a year ago, our adjusted pipeline is actually up 50% year over year. As a result of the increased number of high-caliber patients in the pipeline, we expect to grow product revenues at a greater rate than we achieved in 2022, and to do so with little growth in headcount or operating expenses. We are continuing to serve patients with certain Medicare Advantage plans, which represents a large portion of our patient population. And the good news here is that more seniors are opting for Medicare Advantage plans over traditional Medicare. In fact, it's now increased to 50% of all Medicare eligible beneficiaries. And patients with Medicare Advantage plans represented 60% of our product revenues in 2022. Over the past year, we made good progress with our efforts to obtain coverage for traditional Medicare Part B patients. Back in June, we presented our case for coverage of the MyoPro as a brace at the CMS public hearing. Then in the fall, we were advised to meet with the DMEMAC medical directors and submit MyoPro claims for payments under the individual consideration rules in our HCPCS codes. We expect to meet with the DMEMAC medical directors in the near future to review the newest research on patient success with the MyoPro including Medicare age beneficiaries, since this is an important consideration for CMS. Within a few months, we should understand whether Medicare Part B patients will be eligible for MyoPro under the current coding guidelines. On a parallel path, CMS announced that it is undertaking a new rulemaking process for the brace benefit category, including newer technologies, which we see as a very good sign that CMS recognizes the value that power braces like the MyoPro can offer to paralyzed individuals. Importantly, although we removed patients from our pipeline who didn't have reliable insurance coverage, these patients and those with Medicare Part B coverage may be in a better position to receive a MyoPro should CMS start paying the claims that we submit and achieve the goal of more equitable access to the MyoPro by seniors who have Medicare Part B insurance. On the international front, we've made significant reimbursement progress. The German Social Court has ruled that the MyoPro is reasonable and necessary for patients covered by statutory health insurance companies. And further in Australia, a patient won the first approval of a MyoPro by the National Disability Insurance Scheme, which opens the door to future MyoPro deliveries in that country. As to our joint venture in China, there's been little progress. COVID has had a severe impact on the country since restrictions were lifted in the fall. And we're in touch with our partner to determine when operations can get started there. And we'll keep you posted on this situation as things move forward. Now I'll turn the call over to Dave Henry, Myomo's CFO, for a more detailed discussion of our financial results and an update on our banking relationships, including Silicon Valley Bank. Dave?