Semler Scientific, Inc.

Good day, and welcome to the Summer Scientific First Quarter 2022 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 a 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 touch-tone phone. To withdraw your question, please press star, then two. Please note this event is being recorded. Before we begin, Semler Scientifics would like to remind you that this conference call may contain forward-looking statements. Such statements can be identified by words such as may, will, expect, anticipate, intend, estimate, or words with similar meanings. And such statements involve a number of risks and uncertainties that could cause Semler Scientifics actual results to differ materially from those discussed here. These risks include continued uncertainty due to the ongoing COVID-19 pandemic, and more recently, the Russian invasion of Ukraine, risks associated with similar scientific extension of Pantaflow to additional cardiovascular diseases and its distribution of insulin insights, as well as other risks associated with similar scientific business. Please note that these forth-looking statements reflects similar scientific opinions only as of the date of this presentation, and it undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements in light of new information of future events. Please refer to similar scientific SEC filings for a more detailed description of the risk factors that may affect similar scientific results in these forward-looking statements. Now I would like to introduce Doug Murphy-Tatorian, CEO of Summer Scientific.

Good afternoon, everybody, and thank you for joining us on our first quarter 2022 results call. I'd like to introduce you to Dennis Rosenberg, our Chief Marketing Officer, who will begin the call for us today.

Thanks, Doug. We are pleased to report that during the first quarter of 2022, the company's financial performance rebounded in the home testing market with higher volume of sequential revenues, which grew 67% compared to the fourth quarter of 2021. This was consistent with our expectations regarding the pattern of seasonality in this market, and our thoughts about timing of orders by large insurance plans to our health risk assessment customers. Comparing results for the quarter ended March 31st, 2022 to the corresponding period of 2021, the highlights are as follows. Revenues were higher by 6%, increasing to $14 million. Net income was lower by 31%, decreasing to $3.4 million. Cash at the end of the quarter was $38.4 million, increasing by $11.9 million. We believe that the relatively slower growth in the period-to-period quarterly comparison was due at least in part to the COVID-19 pandemic and more specifically the highly contagious Omicron variant, which peaked in most parts of the United States in 2022 to date. Our staff and many of our customers and prospects experience the higher-than-normal rate of employee absence due to illness, which can have a slowing effect on our sales cycle. That being said, there were two significant milestones that we achieved so far this year that I would like to outline for you. Previously, we've described to you how some customers took years to study Quantiflow before deciding to use it. We have noted that we funnel all the testing data through our servers and provide it back to our customers in a confidential manner, who in turn kept the data privately within their own organizations. Therefore, few knew how powerful and clinically important the data actually were. Now, a large customer has published the data underscoring why they use Quantiflow. We refer to this as the Nevada paper. The big picture. The Nevada paper quantifies risk of peripheral arterial disease, or PAD, on death and other adverse outcomes. The Nevada paper justifies screening asymptomatic patients in the Medicare Advantage population using Quantiflow, thus supporting why CMS pays extra so that these patients can be properly cared for. When the message permeates the medical community, we believe new customers might be attracted to use Quantiflow. The second accomplishment, through our internal development efforts, Quantiflow can now be used as an aid to identify patients who would benefit from further evaluation for another underlying cardiovascular disease. While we are not disclosing this specific disease yet, we believe this extension of Quantiflow may make it even more valuable to assist the medical community in the future, including Medicare Advantage providers. We intend to sell this extension to our existing customer base and others as an upgrade to our software-as-a-service business model. Other key points regarding this extension are the unserved clinical problem may be as important as PAD. A peer-reviewed publication of clinical data has been submitted and is under review. A medical aide performs the test in a primary care setting, similar to how one uses Quantiflow for PAD, and the technology is protected by trade secrets. Now, Andy Weinstein, our Senior Vice President of Finance and Accounting, will describe our financial performance in more detail. Andy?