LENSAR, Inc.

Good morning, ladies and gentlemen, and welcome to the Lansdale Inc. First Quarter 2023 Financial Results Conference Call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you need assistance, please press star zero for the operator. This call is being recorded on Monday, May 15, 2023. I would now like to turn the conference over to Lee Ross of Burns McClellan. Please go ahead.

Thanks, Pam. Good morning, everyone. And once again, welcome to the Lenzar first quarter 2023 financial results conference call. Earlier this morning, we issued a press release providing an overview of our financial results for the quarter ended March 31st, 2023. This release is available in the investor relations section of the company's website at www.lenzar.com. Joining me on today's call is Nick Curtis, Chief Executive Officer, who will review the company's recent business and operational progress. Following his remarks, Tom Staub, Chief Financial Officer of Lensar, will provide an overview of the company's financial highlights before turning the call back over to the operator to facilitate answering any questions you may have. Before we begin, I'd like to remind you that today's call will contain forward-looking statements, including those 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 known and unknown 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 during this presentation. You should not place any undue reliance on these forward-looking statements. For additional information, including a detailed discussion of the risk factors, please refer to the company's 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 this live broadcast, Monday, May 15, 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 Nick Curtis.

Nick? Thank you, Lee, and good morning to everyone listening. Thank you for joining us on our first quarter 2023 conference call. I'm proud to say that Lensar has hit the ground running in 2023, having installed five Ally systems in the first quarter and four more since April 1st, bringing our total installed base to 19. We also have another 13 systems in backlog as of May 12th, 2023. These will install over this quarter and the next quarter. Procedure volumes in the U.S. increased nicely when compared with the first quarter of last year, driven in part by the small but growing number of Ally users. As we reflect on the first several months of Ally's commercial availability, it's evident that the ophthalmic community has a great deal of enthusiasm for our new technology, and we've been successful in executing our controlled and targeted launch in the United States. To this point, looking at recent data published by MarketScope, They estimate that 15% of all US femtosecond laser assisted cataract surgical procedures were performed on Lensar systems in the first quarter of 2023. This represents an increase of 100 basis points over the second quarter of 2022, the time we received FDA clearance for Ally. This growth clearly demonstrates the adoption of Ally as an important catalyst, not only for Lensar, but for the entire industry. In fact, Among users of our previous generation, LLS, who have transitioned to Ally, procedure volumes are up 20% over the first quarter 2022. This level of growth was ahead of our internal expectations and reinforces practice-level operational efficiencies that are fundamental to Ally's value proposition. Importantly, the U.S. represents the largest premium procedure market in the world and is critical to our continued market share growth as we expand Ally's reach in 2023 and beyond. As you can tell from the data I just mentioned, feedback from our surging customers continues to be extremely positive, particularly from users who have made the transition from previous generation femtosecond lasers, both ours and those of our competitors. Most of the systems in the field today are based on aging technology and are much slower, less efficient, not nearly as ergonomic, And in addition to being less adaptable and technologically capable, their awkward sizing makes them more difficult to integrate into the practice. There are countless other advantages that Ally brings, and we are pleased with the reception in the early days of its commercial availability. Evident from the backlog of 13 systems, demand for Ally has been consistently high and continues to grow since launch. We remain affected by the supply chain issues that have impacted the industry as a whole, but we continue to expect these challenges to continue to abate throughout the year. On the marketing front, our dedicated and skilled team has worked diligently to showcase Ally's advanced capabilities, and we've maintained an active presence at the major ophthalmic congresses. This month, we attended the annual American Society of Counteract and Refractive Surgery meeting in San Diego. In addition to the 10 posters highlighting Ally's improved productivity and superior outcomes, we completed a record number of demos with non-Lensar customers. Again, as a prime example of this enthusiasm, the meeting resulted in two signed contracts with new Ally customers, and we received requests for contracts representing more than 35 additional systems. Additionally, I'm excited to announce that we have secured our first multi-system agreements with several facilities and are working on additional multi-system contracts, which at this early stage of our launch is a pleasant surprise. We initially anticipated this level of demand to begin materializing 12 to 18 months following the product launch. The fact that we have been able to secure these multi-system agreements ahead of schedule is a testament to the trust and confidence placed in our company and the effectiveness of our technology platform solutions. It also highlights the industry's recognition of the unique advantages and benefits that our systems offer, propelling us to the forefront of the market and a leader in performance. Looking at our business performance for the quarter, there's much more than what meets the eye. Overall procedure volumes were down 19% compared to procedure volumes in the first quarter of 2022. However, this decrease was driven by the South Korean market where challenges between ophthalmic surgical practices and third-party payers have essentially eliminated procedure purchases for the time being. We expect that this challenge will continue for the foreseeable future and do not have a clear resolution timeframe. The region accounted for approximately 9,900 procedures and revenue of $1.5 million in the first quarter of 2022. Excluding the first quarter 2022 revenue attributable to South Korea, Revenue for the first quarter of 2023 would have increased 5% compared to the first quarter 2022. Today, we also announced the closing of a private placement, which provides $20 million in gross proceeds, which significantly extends our cash runway and which we believe will fund our operations to cash flow breakeven. These proceeds will empower us to make strategic investments in inventory, and sales and marketing resources to further enhance the production and distribution of Ally, ensuring we are maximizing our market penetration with and effectively capitalizing on demand that has been shown and continues to grow. Now let me turn the call over to Tom to cover our financial highlights for the quarter. Tom?