Nephros, Inc.

Good afternoon and welcome to the NEPHRO's second quarter 2023 financial results conference call. All participants will be in listen-only mode. Should you need assistance, please signal your conference specialist 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 on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Kieran Smith. Please go ahead.

Thank you. Good afternoon, everyone. This is Kieran Smith with PCG Advisory. Thank you all for participating in NEPROS' second quarter 2023 conference call. Before we begin, I would like to caution that comments made during this conference call by management will contain forward-looking statements regarding the operations and future results of NEFROS. I encourage you to review NEFROS's filings with the Securities and Exchange Commission, including without limitation the company's forms 10-K and 10-Q, which identify specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements. Factors that may affect the company's future results include, but are not limited to, Nefros' ability to successfully, timely, and cost-effectively market and sell its products and service offerings, the rate of adoption of its products and services by hospitals and other healthcare providers, the success of its commercialization efforts, and the effect of existing and new regulatory requirements on Nefros' business and other economic and competitive factors. The contents of this conference call contains time-sensitive information that is accurate only as of the date of the live call, today, August 9, 2023. A company undertakes no obligation to revise or update any statements to reflect events or circumstances after the date of this conference call, except as required by law. I would now like to turn the call over to Nefros' Chief Executive Officer, Robert Banks. Robert, please go ahead.

Thank you, Kieran, and good afternoon, everyone. I'm very pleased to welcome you to my first earnings call as Nefros' CEO. I accepted this position based on my recognition of Nefros' potential to be a dynamic, profitable, fast-growing company, as well as my confidence in my abilities to help get it there. I'm pleased to report that in the three months I've been with Nefros, none of that has changed. I will begin with a couple of key financial highlights and follow with a few remarks about the present state of Nefros and our future direction. First, I'm happy to report that second quarter revenues were 3.5 million, a 24% increase over the same period in 2022. Looking at the year-to-date performance, the picture is even more compelling, with a 45% increase over 2022. I believe this significant growth demonstrates the positive momentum we have built and the value our solutions bring to the market. The growth is a healthy mix of both our core programmatic business as well as emergency response. I'm also quite pleased to report that we achieved positive cash flows in Q2 for the second consecutive quarter. We have diligently managed our resources and made strategic investments to support our growth initiatives while simultaneously ensuring financial stability. Another important metric that we monitor is the number of active customer sites, ACS, which increased to 1,427, a 6% year over year increase. It is important to note that although the number of sites has increased, our revenue grew four times faster over the same period last year. This indicates that we are expanding within our existing sales base. This land and expand strategy is a deliberate one. It is a very efficient way to grow by gaining a deeper penetration with the existing customer base, capturing more market share, and building stronger and longer-term relationships. Andy Astor will discuss other financial results in a few minutes. First, though, I would briefly describe my findings about the current state of Nefros. and highlight some of my early plans to drive the company forward. Over the past year, Nefros transformed itself from stagnant revenues, levels, and negative cash flows of over $1 million per quarter to strong revenue growth and positive cash flow. In the process, the company reduced its staff by 30%, doubled the size of its sales team, jettisoned two money-losing businesses, and retired all of its debt. We believe these steps have ready the company for fast and consistent profitability in the future. This progress was the result of the hard work and dedication of our talented employees and the mature, experienced leadership team. The company's unwavering commitment to excellence and its ability to adapt in the face of adversity have been instrumental in our journey towards recovery and growth. But we have much more work to do in our drive to build a high-growth, profitable enterprise. Looking forward, we plan to continue to invest in sales and marketing, both within the company and through our network of strategic partners who bring extensive relationships in our target markets. A great illustration of this concept is our partnership with Donestar that we announced in Q1, which is making excellent progress in building a sales funnel with national brands in the commercial markets. Another strategic focus for growth is converting customers experiencing emergency events, such as leachnella outbreaks, into long-term customers with a contractual relationship to provide ongoing revenue streams. These conversion programs have a great deal of focus within our sales efforts. In our core healthcare market, we have diligently evaluated our market position and identified specific segments where we believe Necros can truly differentiate itself. By targeting these segments, we can leverage our unique strength and deliver tailored solutions that meet the specific needs of our customers. This focused approach enables us to maximize our impact and drive sustainable growth. We acknowledge that our competitors have larger direct sales forces and greater market penetration, but we firmly believe that our superior products and our focused sales techniques will be catalysts for success. Our commitment to delivering high quality solutions with market-leading products is unwavering. We are confident that our differentiated offering will resonate with customers and allow us to continue to gain market share. I will now turn the call over to Andy Astor, our CFO. Andy, please go ahead.