electroCore, Inc.

Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to the Electric Core second quarter 2022 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. Should you require operator assistance during the conference, please press star zero to signal an operator. Please note this conference is being recorded. I will now turn the conference over to your host, Rich Cockrell, Investor Relations. Thank you. You may begin.

Thank you all for participating in today's Electric Core earnings call. Joining me today are Dan Goldberger, Chief Executive Officer, Ryan Posner, Chief Financial Officer, and Dr. Peter Stotz, Electric Core's Chief Medical Officer. Earlier today, Electric Core released results for the second quarter ended June 30th, 2022. A copy of the press release is available on the company's website. Before we begin, I'd like to remind you that management will make statements during this call that include forward-looking statements within the meaning of the federal securities laws, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements contained in this call that are not statements of historical facts should be deemed to be forward-looking statements. A forward-looking statement including without limitation, our limitation of operating trends and our future financial expectations, are based upon the company's current estimates and various assumptions. These statements involve material risk and uncertainties that could cause actual results or events to materially differ from those anticipated or implied by these forward-looking statements. Accordingly, you should not place undue reliance on these statements. For a list of risk and uncertainties associated with the company's business, please see the company's filings with the Securities and Exchange Commission. Electric Corps disclaims any intention or obligation, except as required by law, to update or revise any financial projections or forward-looking statements, whether because of new information, future events, or otherwise. This conference call contains time-sensitive information that is accurate only as of the live broadcast today, August 4, 2022. And with that, I'll turn the call over to Dan.

thank you rich hello everyone and thank you for joining us on today's call our business performance continued to improve in the second quarter and the june 30th 2022 revenue for the second quarter of 2022 hit a record 2.2 million dollars increasing approximately 70 percent over the second quarter of 2021 and approximately 14 percent sequentially gross margins expanded to 83 percent And net cash used in operations was about $3.2 million for the quarter ended June 30th, 2022. We continue to invest in the U.S. commercial channels, especially cash pay business models, including Physician Dispense comprised of GC Direct and G Concierge and Direct-to-Consumer to our e-commerce platform. Our Physician Dispense program has grown to about 637 active prescribers across all cash pay programs. We plan to continue investing in our consumer awareness campaigns, initially through paid search and social media, in an effort to drive headache patients to our various channels in the United States and the United Kingdom. We also plan to expand our social media efforts in coming months. Net revenue from the U.S. commercial headache channel was $501,000 for the quarter ended June 30, 2022, a 382% increase from $104,000 in the second quarter of 2021. Approximately $452,000 of our commercial revenue in the second quarter came from those cash pay programs. Net sales from the Department of Veterans Affairs or the VA and Department of Defense or DOD were $1.2 million, an increase of 53% as compared to $779,000 in the second quarter of 2021. A total of 106 VA and DOD military treatment facilities have purchased GammaCorp products through June 30, 2022, as compared to 85 through the second quarter of 2021. Note that there are approximately 1,300 VA healthcare hospitals and clinics and over 400 military hospitals and medical clinics, so we still have plenty of potential growth ahead of us. Revenues from channels outside the United States and exclusive of the Taysian license fee increased 8% to $419,000 in the second quarter of 2022, as compared to $387,000 for the second quarter of 2021. And we look forward to continuing growth in this channel for the rest of 2022. That said, currency fluctuations continue to be a headwind to our international revenue. On April 5, 2022, we announced an exclusive license agreement with Teijin Limited for Japan. TASION is a global conglomerate based in Japan, and they will be an outstanding commercialization partner for the long term. This license covers our proprietary non-invasive vagus nerve stimulation technology for headache and includes provisions to expand to additional indications and or territories in the future. TASION will be responsible for working through the regulatory process in Japan at TASION's expense with support from ElectroCore and leveraging previously published pivotal data. The initial license fee will be recognized over the next four quarters, of which $48,000 was included in the quarter ended June 30th, 2022. The agreement provides for additional license payments tied to successful completion of regulatory and commercial milestones in the future. It also requires an annual license fee that will come due every year starting in April 2023. In addition to the cash consideration, This license agreement further validates the long-term commercial opportunities for NBNS therapy around the world. On April 19, 2022, we announced that GammaCore Non-Invasive Vagus Nerve Stimulation, or NBNS, has been selected for additional funding by the Department of Defense Biotech Optimized for Operational Solutions and Tactics, the BOOST program. The BOOST research program, which will be conducted under the leadership of the 711th Human Performance Wing Performance Optimization Branch of the United States Air Force, seeks to optimize and validate the efficacy of NDNS in accelerated training, sustained attention, reduced fatigue, and improved mood among Air Force personnel. Should the BOOST program confirm previous findings, the project schedule calls for Electric Corps to supply field-ready devices to the Air Force in the second half of 2023. We are optimistic that the solution we will ultimately provide to the Air Force will also find favor among other branches of the active duty military in the United States and abroad in the future. Now, turning to our clinical progress, we continue to advance NVNS across several trials. We participated in a pre-submission meeting with the FDA on May 2nd of 2022, where we discussed our plans in post-traumatic stress disorder, or PTSD, mild traumatic brain injury or concussion, NBNS as a bridge therapy for inpatient substance abuse programs, and acute stroke, among other topics. We believe our presentation was well received, and we have several follow-up items to pursue. On July 7, 2022, we announced that Mayo Clinic launched an investigator-initiated study to assess the efficacy of GammaCore Sapphire in patients with post-COVID syndrome. Post-COVID syndrome, also known as long COVID, is a collection of symptoms that persist more than 28 days after the initial onset of symptoms of infection. Symptoms such as headache, brain fog, fatigue, and gastric distress can bear a striking resemblance to the central sensitization syndromes, a group that includes fibromyalgia, chronic fatigue syndrome, and postural orthostatic tachycardia, or POTS. The study entitled Outcomes of Treatment with Noninvasive Vagal Nerve Stimulation in Post-COVID Syndrome, a Pilot Study, is a randomized, single-center, controlled trial enrolling up to 20 subjects recruited from the post-COVID care clinic at Mayo Clinic in Rochester, Minnesota. Now, I'd like to turn the call over to Brian for a review of our financials and other guidance items. Brian? Thank you, Dan.