Profound Medical Corp.

and thank you for standing by. Welcome to the Profound Medical Second Quarter 2024 Financial Results Conference Call. At this time, all participants are in 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 now 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, any express or implied statements or guidance regarding current or future financial performance and positions, including the company's 2024 financial outlook and related assumptions, the expectations regarding the efficacy of Profound's technology in the treatment of prostate cancer, BPH, uterine fibroids, palliative pain treatment, and osteoid osteoma, and its future revenues and financial results. Such statements involve known and unknown risks, 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 is required by law. Representing the company today are Dr. Arun Manawat, Profound's Chief Executive Officer, Rashed Dhillon, the company's Chief Financial Officer, and Dr. Matthew Burtnick, Profound's Chief Operating Officer. With that said, I'll now turn the call over to Rashed.

Good afternoon, everyone, and welcome to our second quarter 2024 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 Matthew in a moment to provide updates on Tulsa clinical publications, utilization trends, the CAPTCAN clinical trial, and reimbursement. However, before I do, I would like to provide a brief summary of our second quarter 2024 financial results. To streamline things, all of the numbers I will refer to have been rounded, but they are approximate. For the three-month period ended June 30, 2024, the company recorded revenue of $2.23 million, with $1.46 million coming from recurring revenue, and $773,000 from one-time sale of capital equipment. Second quarter, 2024 revenue increased 39% from $1.6 million from the same period in 2023. Looking forward, for the full year 2024, based on the company's current business planning and budgeting activities, we continue to anticipate revenue to be in the range of $11 million to $12 million. Gross margin in Q2 2024 was 64% compared to 66% in Q2 2023. As we mentioned on our last call, we expect gross margin to vary some quarter over quarter But just as we delivered about 60% margin in 2023, we continue to expect to deliver that or better in 2024. Total operating expenses in 2024 second quarter, which consists of R&D, G&A, and sales and distribution expenses were $9.3 million, an increase of 24% compared to $7.5 million in the second quarter of 2023. Breaking that down further, expenditures for R&D increased 33% on a year-over-year basis to $4.2 million. GNN expenses increased by 1%. to $2.1 million, and sales and distribution expenses increased by 32% to $3 million. Net finance income for 2024 second quarter was $934,000 compared to net finance expense of $884,000 for the same three-month period of 2023. Overall, the company recorded its second quarter 2024 net loss of $6.9 million, or $0.28 per common share, down from a net loss of $7.3 million, or $0.35 per common share, for the same three-month period in 2023. As of June 30, 2024, profound head cash of $34.1 million. With that, I will now turn the call over to Matthew.