Profound Medical Corp.

Good day and thank you for standing by. Welcome to the Profound Medical Third Quarter 2023 Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would like to hand the conference over to your first speaker today, Stephen Kilmer, Investor Relations. Please go ahead.

Thank you. Good afternoon, everyone. Let me start by pointing out that this conference call will include forward-looking statements within the meaning of applicable securities laws in the United States and Canada. All forward-looking statements are based on profound current beliefs, assumptions, and expectations. and relate to, among other things, expectations regarding the efficacy of the company's treatment technologies, results of future clinical trials, the ability to obtain coding and or reimbursement from third-party payers, anticipated financial performance, business prospects, strategies, regulatory developments, market acceptance, and future commitments. Such statements involve known and unknown risks and uncertainties and other factors that may cause actual results, performance, or achievements to be materially different from those implied by such statements. No forward-looking statement can be guaranteed. Listeners are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this conference call. Profound undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, other than as required by law. For the benefit of those who are new to the Profound story, I would also like to take a moment to summarize our business. Profound developed and markets customizable incision-free therapies for the ablation of disease tissue. We are currently commercializing TulsaPro, a technology that combines real-time MRI, robotically-driven transurethral ultrasound, and closed-loop temperature feedback control. The technology is designed to provide customizable and predictable radiation-free ablation of a surgeon-defined prostate volume while actively protecting the urethra and rectum to help preserve the patient's natural functional abilities. Tulsa Pro is CE marked, Health Canada approved, and 510K cleared by the FDA. In the U.S., we employ a pure recurring revenue model for Tulsa Pro, whereby we charge customers on a per-procedure basis for Tulsa Pro consumables, lease of medical devices, and services associated with expensive warranties. Outside of the United States, we primarily deploy a capital and consumable sales and service model separately, as the situation warrants that. We're also commercializing Sonalyse, an innovative therapeutic platform that is being marked for the treatment of uterine fibroids and palliative pain treatment of bone metastases. Sonalyse has also been approved by the China National Medical Products Administration for the non-invasive treatment of uterine fibroids and has recently obtained FDA approval under a humanitarian device exemption for the treatment of osteoid osteoma. The business model for Sonalyse systems is currently a one-time sale of the capital equipment. On the call today representing the company are Dr. Arun Menawat, Profound's Chief Executive Officer, and Rashed Dhawan, the Chief Financial Officer. With that said, I'll now turn the call over to Rashed.

Good afternoon, everyone, and welcome to our third quarter 2023 conference call. On behalf of the management team and everyone at Profound, I would like to thank you for your ongoing interest in our company. For those of you who are shareholders, We appreciate your continued interest and support. I will turn the call over to Arun in a moment for an update on our commercial activities. However, before I do, I would like to provide a brief update on our third quarter 2023 financial results. To streamline things, all of the numbers we'll refer to have been rounded, so they are approximate. For the three-month period ended September 30, 2023, the company recorded revenue of $1.7 million with the full amount coming from recurring revenue, representing an increase of 9% in recurring revenue compared to Q2 2023 and 40% compared to the same period of 2022. Total revenue last year's third quarter was $2 million, with $800,000 of that coming from one-time sale of capital equipment in international markets. Total operating expenses in the 2023 third quarter, which consists of R&D, G&E, and selling and distribution expenses, were $7.6 million, a decrease of 18% compared with $9.3 million in the third quarter of 2022. Breaking that down farther, expenditures for R&D were $3.4 million, a decrease of 28% compared to the third quarter of 2022. G&A expenses decreased by 15% to $2 million and selling and distribution expenses were $2.2 million, consistent with the same period of last year. Net finance income for the 2023 start quarter were $1 million, compared with net finance income of $3.3 million in the same three-month period of 2022. Overall, the company recorded a start quarter 2023 net loss of $5.6 million or $0.26 per common share, compared with a net loss of $5 million or $0.24 per common share for the same three-month period in 2022. As of September 30, 2023, Profound had cash of $33.6 million. With that, I will now turn the call over to Arun.