LENSAR, Inc.

Good morning, and thank you for your participation. At this time, our participants are in a listen-only mode. Later, we will conduct a question-and-answer session. As a reminder, this conference call will be recorded. I would now like to turn the conference over to Lee Roth of Burns McClellan. Mr. Roth, please go ahead.

Thanks, Joanna. Good morning, and once again, welcome to the LENZAR Fourth Quarter and Full Year 2022 Financial Results Conference Call. Earlier today, we issued a press release providing an overview of our financial results for the quarter and full year ended December 31st, 2022. A copy of this press release is available on the investor relations section of the company's website at www.lenzar.com. Joining me on the call today is Nick Curtis, Chief Executive Officer of Lenzar, who will review the company's recent business and operational progress. Following his comments, Tom Staub, Chief Financial Officer, will provide an overview of our financial highlights before we turn the call back over to the operator to facilitate answering any questions you might have. Before I turn it over to management, I'd like to remind you that today's conference call will contain forward-looking statements, including statements regarding future results, unaudited, and forward-looking financial information, as well as information on the company's future performance and or achievements. These statements are subject to unknown and known risks and uncertainties, which may cause our actual results, performance, or achievement to be materially different from any future results or performance expressed or implied on this conference call. You should not place any undue reliance on these forward-looking statements. For additional information, including a detailed discussion of the company's risk factors, please refer to our documents filed with the Securities and Exchange Commission, which can be accessed on the website. In addition, this call contains time sensitive information, accurate only as of the date of the live broadcast, March 16, 2023. LENZAR undertakes no obligation to revise or otherwise update any forward looking statements to reflect events or circumstances after the date of this live call. With that said, it's now my pleasure to turn the call over to LENZAR's Chief Executive Officer, Nick Curtis. Nick?

Thank you, Lee, and good morning to everyone listening. Appreciate you joining us on our fourth quarter and full year 2022 conference call. 2022 was a transformational year for Lensar, marked by the successful launch of our next generation system, Ally. On our third quarter conference call, shortly after the launch of Ally in August, I laid out our goal of having 10 Ally systems placed by year end. I'm pleased to say that indeed we placed the 10 systems. But in December alone, we signed contracts for an additional six allies to be installed in the first half of this year. To date, feedback from our initial surgeon customers has been incredibly positive, with some referring to it as a revolution in how flax procedures are performed. The features of Ally that surgeons are most enthusiastic about are the impressive speed and precision of the laser, its small footprint, and unparalleled ergonomics. Faster laser procedures from start to finish that significantly reduce treatment time by up to two-thirds are creating improved patient throughput and translating to more procedures on given surgery days. As you may have seen in our press release today, Dr. James Kotabakash, Chief of Department of Ophthalmology, Cedars-Sinai Medical Center, shared that Ally has been so fast and accurate that it has shortened his surgery day by an hour to an hour and a half. while a different surgeon recently shared with us that he was blown away by Ally's speed and efficiencies, remarking that the procedure was so fast, he had to double check to make sure the procedure was actually completed. Another user stated that Ally takes FLAX to a whole new level. It's important to note that in addition to supporting increased patient throughput and procedures per day, or a shortened surgical day, Ally also appears to be driving increased femtosecond laser assisted cataract surgery use in some instances. As one user noted that Ally's speed and precision have increased his confidence and that as a result he is now converting more than 95% of his patients to laser cataract surgery. This is a surgeon who had used a competitor's first generation laser and prior to Ally had abandoned femtosecond laser assisted cataract surgery altogether. Another perhaps less tangible benefit to the surgery center that I'd like to briefly touch on is how Ally could contribute to improve employee satisfaction in the workplace environment. During the administrator session of the Caribbean Eye Conference last month, the results of a recently conducted survey of top administrators, many of whom manage multiple high volume ambulatory surgery centers, were shared. the study found that the biggest concern, which was ranked number one by 71% of responders, was staff turnover. Looking at the speed and efficiency benefits that Dr. Khodabakash described, surgeons could choose to treat the same number of patients per day, shortening their as well as their surgical staff's workday, likely enhancing employee satisfaction. Alternatively, surgeons can choose to increase the number of procedures performed in a day Both perspectives translate into more revenue and increased profitability for the ASC and the surgeon. Further, several users have remarked about improvements to patient comfort and overall patient experience. Perhaps an even more important contribution to growth than driving better surgeon efficiency is supporting surgeons' ability to deliver improved patient outcomes more consistently when utilizing our advanced technology. It is gratifying to receive this important feedback on both practice efficiency and improved patient outcomes, which we believe will increase surgeon confidence using Ally and ultimately lead to patient conversions to femtosecond laser-assisted cataract surgery and higher utilization within the practice. Furthermore, this feedback supports our strong belief that as we grow the Ally install base and more surgeons learn about the technology through peer-to-peer interaction, Ally will firmly establish itself as an integral value-added tool for ophthalmic surgeons, allowing Lensar to not only grow share of the existing market, but also to potentially catalyze the next phase of market expansion. Importantly, interest from prospective Ally users is extremely high and continues to grow. Earlier this month, we attended the ACOS meeting in Aspen, Colorado, and during a panel-led session titled What Am I Doing Differently in 2023, which featured presentations by leading cataract surgeons. Three of the four surgeons on the panel stated that they already use or will be using Ally and shared why they use Ally to treat their premium cataract patients, which demonstrates a strong peer-to-peer recommendation to all attendees. This is another great example of the increasing groundswell of interest that we've experienced in the first quarter of this year. In addition, I'd like to emphasize this provides further confirmation that our controlled, targeted launch with early technology adopters and higher volume competitive laser key opinion leaders and LENZAR key opinion leaders is the right strategy. Another significant opportunity we have with Ally is to place one or more systems with each practice of private equity-owned groups. Thanks to its small footprint, enhanced ergonomics, significant reduction in procedure time, and opportunity to guide better outcomes, these private equity groups are expressing interest in Ally in their expanding locations as well as replacing their older femtosecond laser technology with Ally. Ally represents a true generational change, and we're continuing to expand our efforts to get the message out to a broader surgeon audience. Additionally, we have increased our hands-on experiences with more demo opportunities during ophthalmic meetings in the US and are creating opportunities for interested surgeons to observe femtosecond laser-assisted cataract surgery in one of our centers of excellence to experience the Ally difference. Our goal is to continue to educate the market on Ally's many benefits over previous generation femtosecond lasers and let them experience the generational change for themselves. While the demand for Ally has remained high, our 2022 rollout was constrained by supply chain challenges. We expect these challenges to abate in 2023, allowing us to make the system more broadly available this year. Consistent with our surgeon-centric culture, we've been completely transparent with our customers as far as installation timing. With that said, it's somewhat gratifying to hear a potential customer say that they want the device as quickly as we can get it to them. Looking at our business performance for the year, we achieved a slight increase in overall worldwide procedure volumes, but more importantly, we've achieved a 3% and an 11% growth in U.S. procedure volumes in Q4 and for the full year in comparison to 2021, respectively. The U.S. represents the largest premium procedure market for Lensar and is fundamental for driving our strategy of market share and penetration with growth in both ally system adoption and over time utilization. According to confirming data from MarketScope, we've continued to expand our footprint in the U.S. market and have continued to take competitive market share. In addition, and importantly, this growth clearly demonstrates that demand for femtosecond laser-assisted cataract surgery procedures in the U.S. remains strong, despite the ongoing economic uncertainty which we all face. This, coupled with the opportunity to replicate the experience I described a moment ago, of the customer who's converting more patients from standard to a premium laser cataract procedure thanks to Ally gives us confidence that we can continue our execution plan to grow our share of the procedure market as we continue our further transition away from legacy technology, increase our overall share of the total US installed base, and continue to broaden Ally's presence in the market. To recap, Lensar has accomplished some very significant milestones in 2022. We oversaw the successful launch of Ally and initiated the transition to the new technology from our Lensar laser system, placed 10 Ally systems in the first four and a half months of a controlled launch, and have created significant demand for Ally through a strategic rollout designed to optimize uptake and build sustainable long-term demand for the system while allowing us to effectively navigate a challenging macro environment. Now let me turn over the call to Tom to cover our financial highlights for the quarter. Tom.