Semler Scientific, Inc.

Good afternoon, and welcome to the Similar Scientific Second Quarter 2025 Financial Results Conference Call. After today's prepared remarks, as time permits, management will take questions submitted prior to this call via email. Please note this event is being recorded. Before we begin, we want to remind you that certain comments made during this call may constitute forward-looking statements and are made pursuant to and within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 as amended. These include express or implied statements regarding the expectations for our Bitcoin treasury strategy, plans to acquire additional Bitcoin, opportunity for upsize and the price of Bitcoin, expansion of the healthcare business, and the development and marketing of additional products. including the receipt and timing of an additional 510K clearance for heart failure and for our wholly owned subsidiary, CardioVanta, and our proposed settlement with the U.S. Department of Justice. Such forward-looking statements are subject to both known and unknown risk and uncertainties that could cause actual results to differ materially from such statements. Those risks and uncertainties are described in the press release of our SEC filings. The forward-looking statements made today are as of the date of this call, and the company does not undertake any obligation to update the forward-looking statements. If you do not have a copy of today's release, you may obtain one by visiting the investor relations page of the website, similarscientific.com. Now I would like to introduce Dr. Doug Murphy-Tutorian, CEO of Similar Scientific.

Good afternoon, Evan. and Ruby, I want to thank you for joining the second conference, the 2025 results call. I also want to take a moment to pause and pay tribute to our late co-founder, Herbert J. Semler, who passed away in July at the age of 96 years. Dr. Semler was a pioneering physician visionary leader, and a creative genius in medical devices. His teaching continues to take shape who we are and what we do. His passion for innovation and commitment to patient care laid the foundation for our mission and remains at the heart of what we do today. Join us in honoring a remarkable life devoted to improving health and vaccine medicine. His legacy of caring leads on. And now I'll hand the call to Eric Semmer, our executive chairman. Eric.

Thank you, Doug. We are super excited about the excellent progress we are making in our Bitcoin operations. and we are confident in the potential of our healthcare business. We believe that renewed strength in our healthcare business will generate meaningful cash flow in the coming years, enabling us to acquire Bitcoin in a highly accretive way. This dual-engine strategy differentiates us among Bitcoin treasury companies. During the quarter and through July 31st, we purchased approximately $195 million of Bitcoin and now hold a total of approximately $586 million. In addition, during the second quarter, we took bold steps to strengthen our Bitcoin team, adding highly acclaimed Bitcoin journalist and educator Natalie Brunel to our board. Since joining in May, Natalie has made a significant contribution to advancing our Bitcoin mission. We are thrilled to have her insights and support. In June, we further strengthened our team by hiring Joe Burnett as director of Bitcoin strategy. Joe is a recognized leader in Bitcoin treasury management, and having his expertise in-house is a game changer for us. His full-time focus on building and executing Semmler's Bitcoin roadmap is already making a measurable impact. Later on, Joe will discuss our Bitcoin philosophy and strategy in more detail. In addition, in June, I went from being chairman of the company to executive chairman to deepen my role in operations at the company. We are extremely proud of the progress we are making as a Bitcoin treasury company and thrilled about the opportunities ahead. Since becoming the second U.S. public company to adopt the Bitcoin standard in May 2024, we have made accretive Bitcoin purchases every quarter. The growth and profitability of our Bitcoin operations, as reported today, are truly remarkable. For the second quarter of 2025, we reported gap net income of $66.9 million, or $5.04 per fully diluted share. On an annualized basis, this would imply a price to earnings multiple of only 1.7 times, significantly lower than the S&P 500 average of 25 times forward PE estimates. Our board of directors, as significant shareholders ourselves, believes the current valuation of similar scientific stock is disconnected from the company's underlying performance and its intrinsic value. It is clear to us that our stock is absurdly undervalued. We are committed to unlocking value for all similar stockholders and are actively exploring accretive opportunities to do so. As I noted earlier, I strongly believe that Similar Scientific offers investors a differentiated business model among Bitcoin treasury companies. Our top priority is to provide stockholders with amplified exposure to Bitcoin using intelligent leverage. With nearly $600 million of Bitcoin holdings and only $100 million of convertible debt that doesn't mature until August of 2030, we believe we have ample room to take on more leverage to amplify stockholder returns, and we are actively exploring a wide range of financing options. Not only are we the sixth largest Bitcoin treasury company in the U.S., but we also operate a healthcare business with 80-plus employees that has the potential to generate free cash flow that will enable us to purchase Bitcoin in a very accretive way. In 2024, we achieved record cash generation of $24 million in our healthcare business. While our business has faced headwinds this year, we believe we are on the cusp of launching several new products in markets that are much larger than our current PAD market. These new businesses will be housed in a subsidiary called CardioVanta. We may seek capital for CardioVanta from outside investors to validate its long-term value and fund its relatively modest capital needs. We strongly believe that our healthcare business has substantial optionality and that its outsized potential upside is not reflected in our market valuations. We are extremely pleased with the value we have created by our consistent, accretive accumulation of Bitcoin. Since adopting the Bitcoin standard just over a year ago, we've strategically and assertively acquired 5,021 Bitcoin, now valued at approximately $586 million, with a cost basis of $476 million, resulting in an unrealized gain of $110 million. So far in 2025, we have acquired 2,723 Bitcoin and generated a BTC yield of 31%. This resulted in BTC gain of 719 Bitcoin and a BTC dollar gain of $84 million as of July 31st. Since adopting the Bitcoin standard in May 2024, we have achieved a 300% positive Bitcoin yield. This has resulted in BTC gain of 1,747 Bitcoin and a BTC dollar gain of 195 million through July 31st, 2025. We remain confident in our long-term goals for accumulating Bitcoin. We are targeting 10,000 Bitcoin by year-end 2025, 42,000 by year-end 2026, and 105,000 by year-end 2027. We are exploring a wide range of options to meet our Bitcoin targets. Historically, to buy Bitcoin, we've used operating cash flow from our healthcare business, monetized a portion of one of our healthcare investments, and issued convertible bonds and accretively issued common stock through our ATM offerings. In our recent proxy filing, we included two proposals, proposals three and four, on the agenda for our upcoming annual meeting on September 5th. These proposals are vital to our strategic direction, as they provide the financial flexibility to raise capital efficiently and to pursue our long-term Bitcoin acquisition strategy. This includes enabling access to a broader range of capital instruments, such as preferred equity. We strongly encourage stockholders to vote for all proposals outlined in the proxy statement. Our Bitcoin strategy has significantly expanded our investor base. We now have more than 32,000 stockholders, up from approximately 11,000 in 2023. We're honored by your support and enjoyed meeting many of you at BTC 2025 in Vegas and BTC Prague in June. In closing, thank you for joining us today. Your continued support means a great deal for us. Now I'll turn the call over to Joe our Director of Bitcoin Strategy.