Sensus Healthcare, Inc.

Good day, ladies and gentlemen, and welcome to the Census Healthcare Second 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 on your telephone keypad to reach a live operator. At this time, it is my pleasure to turn the floor over to your host, Kim Golodetz. Ma'am, the floor is yours.

Thank you very much. This is Kim Golodets with LHA. Thank you all for participating in today's call. Joining me from Census Healthcare are Joe Sardano, Chief Executive Officer, and Javier Rompolla, 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 Healthcare assumes, plans, expects, believes, intends or anticipates, or 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 10-K and 10-Q. During today's call, there will also be reference 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, everyone. Thank you all for joining us today. I hope that you all have remained healthy and that vaccinations will permit us to continue our path forward towards normalcy. Indeed, for Census during the second quarter, it felt like we were getting back to normal as we resumed in-person sales calls which are so effective in detailing the attributes of our superficial radiation therapy systems for the treatment of non-melanoma skin cancer and keloid scars, as we continue to educate our market on new reimbursement schedules made available to SRT treatments effective January 1, 2021. While we continue to keep an eye on the Delta variant, we are seeing significant improvements in economic activity. Our Q2 results reflect that improvement, in particular compared with last year's second quarter as market conditions continue to improve towards pre-pandemic levels. Our business gained momentum throughout the first half of the year, and we are cautiously optimistic about continued sequential quarterly growth for the rest of 2021. Specifically, our Q2 revenues of $5.4 million We're up 358% over last year's COVID impacted revenues, and we're up 77% over this year's first quarter. We shipped 17 systems during the second quarter, including seven SRT 100 vision systems. We sold six SRT 100 visions to our large corporate account and 11 SRT systems directly to customers. Volumes for SRT systems installed at customer sites have continued to improve since the Centers for Medicare and Medicaid Services revalued our main procedure code. And since SRT became so much more prominent while in the midst of the pandemic, while surgeries were held to a minimum, reimbursement increased not only for the main SRT code, but also for evaluation and management codes. Combined SRT users are looking at reimbursement values that are higher by as much as 50%. In addition, codes were revalued upward for the ultrasound capability in our SRT100 vision systems. This has provided greater interest in our vision product by both existing customers and prospects. Our sales force, along with our field applications team, have been engaged with customers and prospects in making sure the new reimbursement and shorter payback time as well is well understood, and we will continue to work with this message throughout the remainder of the year. As I described last quarter, we have developed a fair market value lease with our leasing resources, which makes it easier for our customers to consider the higher price SRT 100 vision. The FMV, or fair market value program, is like leasing programs on high-end cars, whereby the monthly payments is much lower than a capital lease because of the high residual value placed on the vision product. We continue to see good interest in this sales option and have already recorded system sales this year under this program. We expect interest to continue to rise throughout the year. The typical break-even is around two patients per month, which is easily doable for the vast majority of our customers and prospects. In addition, various medical associations, such as the American Academy of Dermatology and the American Society for Radiation Oncology, have increased their support for the safety and efficacy of SRT to treat non-melanoma skin cancer and keloids via conference presentations and papers, and we believe this support is resonating with the physicians. Combination of backing by key opinion leaders and our presence at important trade shows, such as the Fall Clinical, has generated a solid list of leads that we expect to convert to sales during the third quarter and beyond. We look forward to attending the fall clinical in Las Vegas in October, which this year will be held both in person and virtually. We made some significant reductions to our sales team last year due to the pandemic shutdown, and I'm delighted to tell you that our sales team is back to pre-COVID numbers in anticipation of the growth we expect in the second half of this year. Our international business is picking up nicely, and we are very pleased with the continued success of our international business, especially in China. Our new distributor for China and Hong Kong has developed an extensive network of prospects that are converting to sales, with four more systems shipped to China during the second quarter. To date, in 2021, we've sold five systems to China, in addition to four sold during the fourth quarter of 2020. Our Vice President of International Sales with deep professional experience in the China market has been making a positive impact to our bottom line. We are now expanding our focus to India for further international growth and are hopeful to record our first sale there later this year. With respect to China, we are working with the Chinese Health Authority in renewing our license for another four years. This is the third time we've gone through this process and we expect to have it completed by the end of the year. In addition, we are finalizing a new distributor in Taiwan and are preparing Sculptura for the regulatory process in China. Research work with Sculptura at luminary hospitals in the U.S. had been put on hold owing to COVID-19. We believe that research to support various oncology indications will resume by the end of the year and that the resumption of Sculptura sales will begin during 2022. We are pursuing new indications for our SRT100 systems as well. As you know, during the first quarter, we shipped the system to Holy Name Medical Center in Teaneck, New Jersey, as a pilot program in the use of SRT to treat the lungs for COVID-19 pneumonia patients. The hospital has used the system on several patients to date and plans to prepare a paper for publication. We are thrilled to help play a part in the treatment of recovery of COVID-19 patients. We will continue to pursue collaborations with interested institutions who believe in our low-dose radiation solution for COVID-19 patients. As a reminder, in evaluating this opportunity, history showed a very successful approach to treating pneumonia with radiation going back nearly 75 years. Our SRT systems are well-suited for COVID-19 because they are portable and allow for bedside treatment in the ICU. Another indication for SRT is in the veterinarian medicine market. We shipped an SRT earlier this year to Colorado State University Veterinary School and announced the first treatment for a bulldog named Daisy. CSU is continuing to treat canines and felines and are now preparing to begin treatment protocol for horses. Tumors are common in horses, and the use of SRT, especially around the eyes, is a promising therapy. We hope to report data from CSU later this year. Turning now to our aesthetic mobile laser business, the integration of our Sentinel IT Solutions software into our proprietary laser is complete, and these lasers are now available through Census Laser Aesthetic Solutions. SLAS is our mobile aesthetic laser division serving dermatologists throughout Florida that offers multiple lasers with custom rental options. Sentinel provides asset management and HIPAA-compliant patient data and storage capability, and contains the software necessary to support shared service models, including direct patient billing. We remain on track to introduce our family of laser products with Sentinel, known as Smart Lasers, at the South Beach Symposium Aesthetic Laser Program, being held in September in Miami. This will be an in-person event as more than 1,000 dermatologists and plastic surgeons have already registered. We also have been actively evaluating expansion to our mobile aesthetic laser business beyond Florida via strategic transactions and geographies where we have an existing SRT customer base. In particular, we see Texas, Georgia, and Arizona as good prospects to roll in this last division. Over the long term, we expect SLAS to become a meaningful source of recurring revenue. Before I turn the call over to Javier to review our financial results in more detail, I want to express on you our optimism for the rest of the year. Barring any new economic restrictions related to COVID-19 or inflation in the U.S., we are confident we will deliver higher revenues as well as adjusted EBITDA throughout the balance of the year. And given our judicious attention to expenses, we believe we are clearly on track to profitability, a goal that the entire Census team is committed to achieving. And with that, I'll turn the call over to Javier. Javier?