Nephros, Inc.

Good afternoon and welcome to the NEFROS, Inc. Second Quarter 2026 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 2. Please note this event is being recorded. I would now like to turn the conference over to Mr. Kieran Smith, Investor Relations. Please go ahead.

Thank you, Operator, and good afternoon, everyone. This is Kieran Smith with PCG Advisory. Thank you all for participating in NEFROS' second quarter 2026 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' filings with the Securities and Exchange Commission, including without limitation the company's Forms 10-K and 10-Q to identify specific factors that make those 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, NetRos' 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 NetRos' 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 6th, 2026. 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 NEPHRO's President and Chief Executive Officer, Robert Banks. Robert, please go ahead.

Thank you, Kieran, and good afternoon, everyone. I'm very pleased to walk you into the call. The second quarter of 2026 was an exceptional quarter for Nefros and represents another major step forward in the company's development. We generated $6 million in revenue, the highest quarterly revenue in our history, and a 36% increase over the second quarter. Revenue also increased approximately 15% sequentially from our record first quarter. More important than the headline number is the quality and breadth of the growth. Our core programmatic product revenue increased by double digits year over year. This is the recurring foundation of our business. Customers install our products, incorporate them into their water management programs, and continue purchasing replacement filters over time. Our service-only revenue nearly tripled as customers increasingly rely on NEPHROs for installation, replacement, and ongoing support, not simply for the initial product purchase. emergency response revenue also increased meaningfully during the quarter. That business can naturally fluctuate depending on outbreaks, infrastructure issues, and urgent customer requirements, so we do not build our long-term strategy around it. However, our ability to respond quickly remains an important differentiator and complements the steady growth of our core programmatic business. Together, these results demonstrate that our broad strategy is working. Nepros is increasingly becoming more than a filter product company. We are building an integrated water safety platform around three mutually reinforcing pillars, products, services, and education. Our differentiated products open the door. Our installation and replacement services make adoption easier and deepen the customer relationship. Our education efforts, including the Nefros Water Institute, help customers understand their risks and make more informed water safety decisions. A major topic Judy and I addressed in the last call was our gross margin. The reported result requires some context. The reported gross margin was 67% compared with 63% in the second quarter of 2025. This was largely due to the tariff refund. I'll let Judy go into more details during the financial portion of the call because it's not as straightforward as it seems. She will talk about the adjusted margin if we place refund in the periods in which the affected inventory was sold. The remaining year-over-year pressure reflects the continuing 10% tariff. The strengthening of the Euro relative to the U.S. dollar increased shipping costs, and the growing contributions from commercial and service revenue which currently carry lower margins than our core infection control products. We are pleased to have recovered a meaningful amount of previously paid tariffs, but we recognize that margin improvement remains an important area of focus. We continue to evaluate pricing, sourcing, freight, product mix, and operational efficiencies as we work to offset the remaining external cost pressures. We also are continuing to invest in the areas that we believe can support the next stage of growth. Expanding our presence in important markets, including Greater New York and Puerto Rico. Increasing adoption of installation and scheduled replacement services. Growing education-led demand through the Nefros Water Institute. Introducing products addressing PFAS, microplastics, nanoplastics, Sterile Processing, and broader commercial applications. And then number five, strengthening investor awareness and market visibility. During the quarter, we hosted our virtual investor event, participated in the Maxim Health Wellness Longevity Conference, announced our inclusion in the Russell Microcap Index, and increased communication around emerging water quality concerns such as microplastics and nanoplastics. Our investor event attracted attendees from several regions and a range of investment and financial data organizations. These initiatives help broaden awareness of both the company and increasingly important water quality problems that we address. As we enter the second half, I believe Nefros is in the strongest position in its history. For the first six months of the year, revenue increased 21% to approximately 11.2 million. We are growing across multiple channels rather than depending on a single product, geography, or revenue source. That diversification makes the business larger, more durable, and more capable of producing sustained long-term growth. I want to thank our employees for their tremendous execution, our customers and partners for their continued trust, and our investors for their support. With that, I will turn the call over to our CFO, and Judy Krandel for a closer look at our financial results. Judy?