Sensus Healthcare, Inc.

Ladies and gentlemen, thank you for your patience. Please remain on the line. Your conference call will begin momentarily. Again, we do appreciate your patience. Please remain on the line. Your conference call will begin momentarily. Thank you. Thank you. Good day, ladies and gentlemen, and welcome to the Census Healthcare 1Q22 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 Gallaudet. Ma'am, the floor is yours.

Thank you. This is Kim Golodets with LHA. Thank you all for participating in today's call. Joining me from Census Healthcare are Joe Sardano, Chairman and Chief Executive Officer, Michael Sardano, President and General Counsel, 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. or statements other than historical facts that address activities Census Healthcare assumes, plans, expects, believes, intends, or anticipates, and other similar expressions, will, should, or may occur in the future, or 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 GAP. A reconciliation of non-GAP to GAP results is included in today's financial results press release. With that said, I'd like to turn the call over to Joe Sardana. Joe?

Thank you, Kim. Happy Cinco de Mayo, everyone, and happy Skin Cancer Awareness Month. I'd like to take this opportunity to urge all of you to take the proper precautions from the sun and to see your dermatologist for skin cancer screening. I'm delighted once again to be reporting excellent quarterly financial results with revenues of $10.3 million, which is more than three times last year's Q1 revenues. In addition, we earned $0.20 a share from continuing operations compared with a loss of $0.07 last year. Indeed, the year is off to a terrific start, and we are optimistic this momentum will continue. As you all know, during the worst of the COVID-19 outbreak, we did everything we could to support our customers, providing PPE, leads on scarce medicines, and continued educational programs via Zoom regarding the use of SRT in treating non-melanoma skin cancer and keloids during the pandemic. In short, we spent that time preparing for sustained growth. We later focused on educating our physician customers on the improved return on investment for the SRT. Recall that CMS reimbursement code for delivery of superficial radiation therapy, along with other codes associated with SRT, were revalued upward effective January of 2021, while codes for Mohs surgery were revalued downwards, These changes have had a direct and positive impact on patient access to care. During Q1, we shipped 33 total units, 26 SRTs, including one to China, and seven transdermal infusion systems, which I'll talk about in more detail shortly. The bulk of those units were the SRT100 Vision, our premium system with image-guided ultrasound. Additionally, the physicians are seeing the value in purchasing Sentinel, our proprietary HIPAA-compliant software. Sentinel is available on all of our new products, and it allows the physician to easily and accurately document patient data for both clinical and billing purposes. In addition, Sentinel allows the streamlining of service with remote diagnosis and asset management capabilities. This technology has been a game-changer for our SRT customers and for Census, as it clearly demonstrates the attractive ROI for the SRT100 Vision and SRT100 Plus systems. Sentinel is also included now in all five of our census-branded aesthetic smart lasers. We have continued to see growing patient volumes at customer sites, in part because SRT became so much more prominent during the pandemic while surgeries were kept to a minimum. We believe this positive shift resulted in best practice migration towards SRT that will not only be a permanent gain for Census, but will continue to generate demand for non-invasive treatment approach. In conjunction with the improved CMS reimbursement, we have firmly established our fair market value leasing program. The program has been well received both in Q1 of 2022 and in subsequent weeks and is supporting sales of our products across the board. We are also benefiting from the recurring revenue associated with service agreements. Approximately 50% of our customers have purchased extended warranty service agreements compared with just 25% a few years ago. Note that our ability to diagnose any issues, including before they happen, has been made easier with the Sentinel technology, and it has greatly enhanced our customer service. During the first quarter, we continue to sharpen our focus on our core dermatology market, And in March, we sold a non-core asset for $15 million cash. We now have the strongest balance sheet in the history of the company with $32.8 million in cash and equivalents and no debt as of March 31, 2022. Our board of directors approved a $3 million share repurchase program that we intend to deploy thoughtfully and in the best interest of our stockholders. We will also utilize our cash to add to our product portfolio as we continue to search for unique technologies that will expand our footprint in the dermatology space, contributing to our profitability and bottom line. As we plan for future growth, we are mindful of ways to leverage one of our core competencies, namely our sales organization. With a view toward adding product to serve our customers, recall that in December we entered into an exclusive U.S. distribution agreement for a non-invasive drug delivery system. We have branded this product as transdermal infusion systems. This system is cleared by the U.S. FDA for local administration of ionic drug solutions into the body for medical purposes and can be used as an alternative to injections offering patient treatments with no pain, no needles, and no downtime. We were delighted to highlight this system for non-invasive drug delivery for skin rejuvenation treatments pre-laser treatments, pre- and post-plastic surgery at the Winter Clinical in Hawaii in January and at the American Academy of Dermatology Conference in Boston in March. We are excited about the potential for this system, in particular for the delivery of phenosteride. You probably know this drug as Propecia or PRP, and it is a leading product for hair growth. Dr. Glynis Ablon, a key opinion-leading dermatologist, with the Ablon Skin Institute and Research Center in Los Angeles, an associate clinical professor at UCLA, is studying the delivery of PRP with our transdermal system. We believe her work will validate the system's excellent utility for this hair restoration indication, and we are pleased to be working with a physician of her caliber and look forward to the results of her study. Additionally, Dr. Mark Nestor, Director of Cosmetic Enhancement, Center for Clinical and Cosmetic Research in Aventura, Florida, recently presented an abstract outlining the efficacy of utilizing transdermal infusion for subjects with axillary hyperhidrosis, which are for excessive sweat glands. We also featured our SRT systems at the AED conference, where we continued to highlight SRT's impact on treating non-melanoma skin cancer and keloids. as well as the Fair Market Value Leasing Program I just mentioned. In both Hawaii and AED in Boston, we were so very happy to return to in-person meetings. They are a very valuable avenue for solidifying our customer relationships and generating important sales leads. In addition, we have some marketing initiatives that will be active in May in conjunction with the Skin Cancer Awareness Month. Turning to international markets, we delivered one SRT unit to China, which is, as you know, a solid market for us, especially for the use of SRT in the prevention of keloids. We remain encouraged with this market in spite of the pandemic situation in parts of the country. On another note, we're very excited to announce that Census was given regulatory approval to treat non-melanoma skin cancer and keloids with SRT in Taiwan. We're seeing a lot of interest and are looking forward to announcing orders coming from this new territory. I also want to mention that during the first quarter, we hired nine sales representatives, returning our sales organization to pre-pandemic levels, plus two service engineers and a clinical application specialist. We will continue to hire throughout the remainder of the year to support sales and marketing and customer service as we continue to expand our footprint. We continue to be confident in our sales and earnings trajectory as supported by a robust organization, excellent products backed by rigorous research, and creative methods of financing and a committed management team. Before I turn the call over to Javier to review our financial results, I want to emphasize how pleased I am with our financial performance and just as important with the dedication of our staff. We are always cognizant of our surroundings. Notwithstanding the geopolitical and financial turmoil that abounds and noting our usual seasonality, we're very much aware of the threats of inflation, wars, pandemics. In spite of these factors, we expect continued profitability for the year. For the most part, the pandemic seems to be behind us. We have a robust backlog of orders, and we continue to keep a keen eye on expenses. With that, I'll turn the call over to Javier. Javier?