Nephros, Inc.

Good afternoon and welcome to the Nefros, Inc. Third Quarter 2023 Financial Results Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. 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 of PCG Advisory. Please go ahead.

Good afternoon, everyone. Thank you all for participating in NEFROS' third 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 NEPHRO'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 statement. Factors that may affect the company's future results include, but are not limited to, NEPHRO's 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 customers, the success of its commercialization efforts, and the effect of existing and new regulatory requirements on Netflix's business and other economic and competitive factors. The content of this conference call contains time-sensitive information that is accurate only as of the date of the live call today, November 8th, 2023. The 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, Karen. And good afternoon, everyone. I'm very pleased to welcome you to the third quarter earnings call. We are quite happy with our third quarter results, especially our revenue of $3.7 million and a 55% increase over last year. Nefros has delivered high levels of sustained growth over the past three quarters, with growth margins up significantly from the same period last year. In addition, our cash flows in 2023 have been consistently positive, totaling over $1 million so far this year. We will remain laser focused on financial growth and are committed to offering compelling value proposition for our infection control and dialysis customers. Furthermore, our commercial filtration business continues to mature under the efficient operating model we have in place. Overall, I am very encouraged. Next, I will explain some of the drivers of the growth we have been experiencing. First, We have been tactically focused on strengthening our distribution channels and cultivating deeper, more worthwhile relationships with partners whose goals and priorities align with our own. So far, we have seen increased sales within existing sites and larger sales per transaction. Second, we have strengthened our emphasis on converting emergency response customers to ongoing programmatic relationships. In other words, we are working hard to convert sales that might have otherwise been one-time events into recurring long-term business relationships. We love recurring revenue from programmatic business and our customers enjoy the ongoing protection we provide. So far, we are seeing positive impact from these efforts across our territories. Third, we have maintained inventory resiliency. a meaningful differentiator. In the infection control space, as our competitors often struggle with product availability, we are confident that our enduring ability to provide products when customers need them while delivering high-quality solutions and unmatched customer service. This will allow us to continue gaining market share. And finally, we have begun to see growth trends as a result of the ASHRAE 514 standard, which focuses on the risks and actions healthcare institutions should take to protect their patient populations from waterborne pathogens. The ASHRAE organization develops national building standards which may influence the codes and regulations for the built environment. While the new standard is not a regulation, we believe it positively impacting demand for our products. I would now like to welcome Judy Krendel, our new Chief Financial Officer, to the call. Judy will present some of our key financial results. Andy Astor is also on the call and will provide historical context and additional color as needed during the Q&A portion of this call. Judy, please go ahead.