Sensus Healthcare, Inc.

Good day, ladies and gentlemen, and welcome to the Census Healthcare First Quarter 2021 Financial Results Conference Call. All lines have been placed on a listen-only mode, and the floor will be open for questions and comments following the presentation. If you should require assistance throughout the conference, please press star zero to reach a live operator. At this time, it is my pleasure to turn the floor over to your host, Kim Golodets. Ma'am, the floor is yours.

Thank you, Operator. This is Kim Golodac with LHA. Thank you all for participating in today's call. Joining me from Census Health Care are Joe Sardano, Chief Executive Officer, and Javier Rampolla, Chief Financial Officer. As a reminder, some of the matters that will be discussed during today's call contain forward-looking statements within the meaning of federal securities laws. All statements other than historical facts that address activities Census Health Care assumes, plans, expects, believes, intends or anticipates, and other similar expressions, will, should, or may occur in the future, are forward-looking statements. The forward-looking statements are management's beliefs based on currently available information. Census healthcare undertakes no obligation to update or revise any forward-looking statements except as required by law. All forward-looking statements are subject to risks and uncertainties, including the continuation and severity of the COVID-19 pandemic and its impact on sales and marketing, as described in the company's Forms 10Q and 10K. During today's call, they will also be referenced to certain non-GAAP financial measures. Census believes these measures provide useful information for investors, yet should not be considered as a substitute for GAAP, nor should they be viewed as a substitute for operating results determined in accordance with GAAP. A reconciliation of non-GAAP to GAAP results is included in today's financial results press release. With that said, I'd like to turn the call over to Joe Sardano. Joe?

Thank you, Kim, and good afternoon, everybody. Thank you all for joining us. It's been quite a year, and I hope that you all have continued to remain healthy. Now that fully half the country has had at least one COVID-19 vaccine, perhaps before too long we'll be able to move forward. Indeed, we are seeing significant improvements in economic activity, which is in stark contrast to when I spoke with you one year ago when census was so negatively impacted by the complete shutdown of the U.S. economy. Our first quarter 2021 revenues of $3.1 million were significantly higher versus the prior year. More specifically, revenues were up 83% and reflect progress in our return to normalcy. revenues featured both domestic and overseas sales. We are cautiously optimistic that the signs of market recovery will allow continued revenue growth as the year progresses, noting our historical seasonality during the summer months. We were delighted to ship seven SRT systems during the quarter, including six domestic direct sales and one to China. We're particularly pleased that the SRT systems installed at customer sites are operating with good volumes. This is likely reflecting not only the safety and efficacy of using SRT to treat non-melanoma skin cancer, but also a fair reimbursement environment as of January 1, 2021. As of that date, the Centers for Medicare and Medicaid Services, or CMS, revalued our main procedure and other codes following years of lobbying by Census and a host of key opinion leaders who went to bat for us with CMS, highlighting the efficacy and safety of SRT. The American Cutaneous Oncology Society in particular was most helpful working alongside Census with the American Academy of Dermatology. We have a lot of people to thank for believing in us and our technology. As we had previously indicated, Q1 has had us focused on helping the market better understand the new reimbursement coding. We stated that this will be a major part of our activities throughout the first half of 2021. Our sales force, along with our field applications team, has been engaged with customers and prospects in delivering this message and will continue to do so throughout the year. Reimbursement increased not only for the main SRT code, but also increased for the evaluation and management codes. The combination of these increased values provides SRT users as much as 50% increase over the reimbursement values of the past several years. In addition, codes were revalued upward for the ultrasound capability in our SRT 100 vision systems. This has caused a greater interest in our vision product by our existing customers and prospects alike since break-evens are improved. It has also increased interest in shared revenue programs. To date, we have penetrated only about 2% of the U.S. market, so clearly there's plenty of upside for growth. Customers and prospective customers alike appear to be satisfied with the new reimbursement levels, and we anticipate this acceptance will be reflected in our revenue during the second half of this year. In addition, we've developed a fair market value lease with our leasing resources, which provides another reason for our customer base and prospects to consider our higher-priced SRT 100 Vision product. The FMV program offers much the same as on high-line vehicles, whereby the monthly payment is much less than a capital lease, which has a dollar buyout, because of the higher residuals placed on our products. We see good interest with prospects beginning in Q2. We feel this program will grow in popularity as we lower payments for our customers, while at the same time helping them achieve break even sooner. We were thrilled with the 500th installation since the formation of Census Healthcare a decade ago. A sale was to the Mid-Atlantic Skin Surgery Institute in Maryland, It was their second purchase of an SRT system as they expand their practice to a second location. We're looking forward to the installation of the next 500 units and do previously mentioned, we feel we can install our next 500 units in half the time. During the fourth quarter, we shipped an SRT system to Holy Name Hospital in Teaneck, New Jersey for the use of superficial radiation therapy treating the lungs of hospitalized COVID-19 patients. This hospital has been at the forefront of treating patients from the early days of the pandemic, being situated adjacent to New York City, which was impacted early on. During the first quarter of 2021, Holy Name successfully treated its first patient, with the patient leaving the ICU ward the day after treatment. Since then, a second patient has been treated, and we will learn of the outcome soon. The hospital is developing protocols for treatment, and we continue to expect data on the efficacy of our system for this indication during the second quarter. As a reminder, in evaluating this opportunity to help our frontline workers and patients, history showed a very successful approach to treating pneumonia with radiation going back nearly 75 years. We engaged an outside physics lab to evaluate our radiation and provide us with a non-biased opinion on whether or not our radiation could sufficiently penetrate the body to treat the lungs. They published a paper that provided us the confidence that our SRT technology was capable of doing so. Our SRT systems are well-suited for COVID-19 because they are portable and allow for bedside treatment in the ICU, rather than transporting patients to a cancer treatment center for radiation therapy and possibly exposing vulnerable oncology patients to the virus. Turning now to our aesthetic lasers, we are approaching the launch of our new aesthetic lasers and the integration of the Sentinel IT solution software into the lasers. Phase one is complete. Sentinel provides asset management and HIPAA compliant patient data and storage capability, and also contains the software necessary to support shared service models including direct patient billing. We expect the sale of aesthetic lasers will become a meaningful source of revenue, in particular as we roll out disruptive rental strategies. These strategies are designed to generate consistent revenue for census while providing physician customers with access to multiple lasers. We are also looking at expanding our mobile aesthetic laser business beyond Florida via strategic transactions. We will introduce our family of laser products with Sentinel, known as Smart Lasers, at the upcoming South Beach Symposium Aesthetic Laser Symposium being held in September at the Miami Diplomat Hotel. It will be a live event as over 1,000 dermatologists and plastic surgeons have already registered. Sentinel IT has started to generate high margin recurring revenue. Although still early in its life cycle, Sentinel holds significant promise as an integrated feature, not only with the new lasers, but also with the SRT100 Plus and the SRT100 Vision. Turning now to our international efforts, business in China looks very promising. Following the sale of three systems there during the fourth quarter of 2020, we sold an additional system this past quarter. We expect several more sales in the coming year. As of the start of the first quarter, we engaged a new distribution partner for China and Hong Kong. Our new VP of International Sales has developed an extensive network of prospects in China, and we're optimistic that China represents an excellent growth opportunity. In preparation for growth, we will be engaged with the Chinese Health Authority in renewing our license for another four years. This will be an expensive endeavor and will require almost the entire year to accomplish. This will be our third license renewal. In addition, we are finalizing a new distributor in Taiwan and are preparing scultura for the regulatory process in China. Sculptura is our anastrophic radiation therapy with beam sculpting capabilities and robotic respiratory tracking for up to 17 different indications. During the first quarter, we were granted an important U.S. patent for Sculptura, which describes the method of beam splitting and sculpting. This patent covers 31 separate claims dealing with how our electron beam generator is able to sculpt and direct X-rays precisely where they are wanted. The technology that's embedded in our sculptura system differs from the conventional interoperative radiation therapy or brachytherapy systems in its ability to control the radiation beam and has a longer, useful operating life. Ours is the first device in the world with this capability, and we believe it opens up new doors for the delivery of radiation to treat solid tumors of all kinds. In addition, there may be use for this technology in devices other than Sculptura, as well providing potential licensing opportunities. In the meantime, later this year, we expect our research partners at the University of Pennsylvania to begin supportive studies in breast and other cancers that have been on pandemic-related hold. With that, I'll turn the call over to Javier Rampal, our CFO, who will go over our Q4 and fully financial results in more detail. Javier?