electroCore, Inc.

Greetings and welcome to the Electric Core first quarter 2023 earnings call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Nicole Jones, Investor Relations. Please go ahead.

Thank you all for participating in today's Electricor earnings call. Joining me today are Dan Goldberger, Chief Executive Officer, and Brian Posner, Chief Financial Officer. Earlier today, Electricor released results for the first quarter ended March 31st, 2023. 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 the 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. All forward-looking statements including, without limitation, any guidance, outlook, or future financial expectations or operational activities and performance 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 the 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, May 3rd, 2023. With that, I'll turn the call over to Dan.

Thank you, Nicole. Hello, everybody, and thank you for joining us on today's call. We are thrilled to report another record revenue quarter with sales of $2.8 million for the period ended March 31st, 2023, a 46% increase over the prior year. Gross margins expanded nicely to 84% for the first quarter of 2023. Our prescription headache business continues to grow worldwide. We launched two new non-prescription product lines in late 2022. Truvega is a direct-to-consumer wellness brand and taxed him for human performance for our active-duty military personnel. Both new products exceeded our expectations in the first quarter and are driving excitement about the future. Truvega is currently available exclusively through our e-commerce platform at truvega.com. We are positioning Truvega as a direct-to-consumer wellness product for stress, mental acuity, and sleep. No prescription is required for this category. Buvega recorded net sales of $147,000 in the first quarter of 2023. Based on this initial success, we are accelerating our marketing investments and raising our internal expectations for the product line. So far this year, our revenue return on advertising spend, what the industry calls a media efficiency ratio, or MER, has been greater than 2.0. We're carefully monitoring return rates as well, which have been below 10% so far this year. We believe that the Truvega business can scale nicely if we can maintain or improve these metrics as we move through the year. TACSTEM for human performance is being sold to select Air Force and Army Special Forces units for accelerated training, sustained attention, reduced fatigue, and improved mood without a prescription as defined by the Air Force Research Laboratory, or AFRL. We recorded $88,000 of TACSTEM revenue in the first quarter of 2023, and I'm encouraged by the growing sales funnel for this product. In parallel, we're developing a second-generation product known internally as TACSTEM 2.0 in collaboration with AFRL, and I expect to deliver prototypes to Wright-Patterson Air Force Base or evaluation later this summer. Note that revenue growth for this product line is likely to be lumpy as active duty units purchase in bulk for pilot deployment. Turning now to our prescription headache business, the VA DOD hospital channel continues to be our largest customer. You'll recall that our GammaCorp prescription therapy is free to patients covered by Veterans Administration's benefits, representing about 10 million covered lives. Sales in the VA DOD channel grew 38% from $1,240,000 in Q1 2022 to $1,705,000 in the first quarter of 2023. 124 VA and DOD military treatment facilities have purchased prescription Gamma Corps products through March 31st, 2023, as compared to 105 through March 31st, 2022. U.S. commercial sales of prescription GammaCorp products grew 56%, from $276,000 in Q1 2022 to $430,000 in the first quarter of 2023. While GammaCorp is covered by certain express scripts and CVS Caremark benefit plans, most of our growth is coming from cash pay channels, including GC Direct and G Concierge. These channels have grown from 410 prescribers at the end of the first quarter of 2022 to 1,834 at the end of the first quarter of 2023. We added 506 new prescribers during the first quarter of 2023, and our prescriber numbers continue to show strong growth through April 2023. We believe the increase in prescribers could be a leading indicator of future growth. Last year, we announced a distribution agreement with Jurans Healthcare LLC that we believe will add more than 12.5 million covered lives within a select managed care health system. The business model with Jerns will be similar to how we work with the VA hospital system. Jerns will handle adjudications, billing, and collections, while ElectraCorps will ship directly to patients and provide inservicing and patient support. Our field sales team is responsible for educating clinicians within those managed care systems. We continue to work with Jerns on the implementation, And while we did not have any revenue in this channel in the first quarter of 2023, we've been notified that the first prescriptions were being processed through DERNS late last month. Revenue from channels outside the United States increased a healthy 34% to $410,000 in the first quarter of 23, as compared to $305,000 for the first quarter of 2022. OUS revenue included $45,000 of licensing fees in Japan, while most of the balance was generated in the United Kingdom by prescription Gamma Core sales funded by the National Health Service, or NHS. Now, turning to our clinical progress. On April 26, 2023, we announced that the National Institute on Drug Abuse, NIDA, part of the National Institute of Health, NIH, has awarded Emory University and Georgia Institute of Technology a three-year, $6 million grant through the NIH Helping to End Addiction Long-Term, or HEAL, initiative to conduct a pivotal clinical trial of gamma-core NBNS for the treatment of opioid use disorder, OUD. A double-blind, randomized, cam-controlled study to be funded by the grant will recruit approximately 100 patients with OUD, Primary efficacy endpoint of the study will be peak difference in the subjective opioid withdrawal score between NVNS and sham treatment on days two and three of the initial withdrawal period. On April 24, 23, we announced that the Air Force Research Laboratory's reported data from its study on the ability of our noninvasive vagus nerve stimulation to improve second language learning. The study was conducted at the Defense Language Institute in Monterey, California, the U.S. Department of Defense's premier language school. The study was supported by the Defense Advanced Research Projects Agency, DARPA, within their targeted neuroplasticity training program. The study showed a significant positive effect of NBNS over sham on language recall. Participants receiving our treatment also showed significant increases in energy and focus over the course of each training session. On March 23, 23, we announced the publication of a paper entitled Non-Invasive Vagus Nerve Stimulation Improves Brain Lesion Volume and Neurobehavioral Outcomes in a Rat Model of Traumatic Brain Injury in the peer-reviewed Journal of Neurotrauma. The control group showed significant deficits, but all of these deficits were reduced in the high-dose NBNS group. Additional work on the potential benefits of NBNS on TBI will be funded by an exploratory development research grant, an R21, from the National Institute of Neurological Disorders and Stroke. We will continue to provide updates about our pipeline and other opportunities. Now, I'll turn the call over to Brian for a review of our financials and other guidance items. Brian?