Nephros, Inc.

Good day and welcome to the NEFROS, Inc. Third Quarter 2024 Financial Results Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a 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 with PCG Advisory. Please go ahead.

Thank you, Debbie. Good afternoon, everyone, and welcome to NEFROS' Q3 2024 earnings conference call. Thank you all for participating in NEFROS' third quarter 2024 conference call. Before we begin, I'd like to remind you that this call will include forward-looking statements regarding the operations and future results of Nefros. For a discussion of these forward-looking statements, please review Nefros' SEC filings, including 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 results include, but are not limited to, Nefros' ability to successfully, timely, and cost-effectively market and sell its products and services 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 content of this conference call contains time-sensitive information that is accurate only as of the date of the live call today, November 7th, 2024. The company undertakes no obligation to revise or update any statements to reflect events or circumstances as to the date of this conference call, except as required by law. Now, I would like to turn the call over to NEPHRO's President and Chief Operating Officer, Chief Executive Officer, excuse me, Robert Banks.

Robert, please go ahead. Thank you, Karen. And good afternoon, everyone. I appreciate you joining us today for Nefros' Q3 2024 earnings call. This quarter represents a significant milestone for our company as we achieved our first profitable quarter since inception. I want to begin by acknowledging the hard work and dedication of the entire Nefros team who have made this achievement possible. For the third quarter, which ended September 30th, 2024, we reported a net revenue of $3.5 million an increase of 8% over Q2 2024, but a 6% decline compared to Q3 2023. Despite this decline, I'm pleased to report a net income of $.2 million compared to a net loss of $.2 million in Q3 of last year. This positive shift is driven by cost management efforts and operational improvements that have helped us to reach this milestone. Gross margin for the quarter was 61% compared to 59% in Q3 2023, reflecting improved terms with our largest supplier. Adjusted EBITDA for Q3 was $295,000, a significant improvement over 11,000 in the same quarter last year. SG&A expenses were reduced to $1.7 million from 2.1 million in Q3 2023 due to lower stock compensation and bonus accruals. And quarterly revenue increased 8% over Q2 following a rebound in emergency response ER orders. Although we continue to see some challenges in specific regions, we remain focused on mitigating reductions in programmatic reorders by strengthening customer engagement and service capabilities. We are making strategic advancements to ensure long-term growth. In Q3, we began ramping up our digital support tools for filter installation, which will improve customer compliance with filter change-out schedules and drive recurring revenues. This initiative, coupled with our increased service capabilities, positions us well for future growth. Looking ahead, we are focused on expanding into new markets, such as scale processing, laboratories, and dental practices where we see clear opportunities for our products. Additionally, we are actively exploring partnerships that will allow us to offer solutions for emerging issues like nano and microplastic contaminations. As of September 30th, 2024, our cash and cash equivalents stood at $2.5 million. This is down from $4.3 million at the end of 2023. This reduction is primarily due to operating losses in the first half of 2024, payments of annual employee bonuses, and an inventory investment in Q1. Despite this decrease, we remain committed to maintaining financial discipline while pursuing strategic growth opportunities at the same time. In conclusion, Q3 marks a pivotal point for Nevros as we enter a new phase of profitability and operational excellence. We are excited about the future, and we remain focused on delivering strong results for our stakeholders. I want to thank our investors, partners, and employees for their continued support. We look forward to building on this momentum in the coming quarters. I will now turn the call over to our CFO, Judy Crandall, for a detailed discussion on our financial performance. Judy?