Sensus Healthcare, Inc.

Welcome to the Census Health Care Second Quarter 2023 Earnings 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 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 telephone keypad. To withdraw your question, please press star, then two. Please note that this event is being recorded. I would now like to turn the conference over to Kim Sutton-Golodetz with LHA Investor Relations. Please go ahead.

Thank you. This is Kim Golodetz with LHA. Thank you all for participating in today's call. Joining me from Census Healthcare are Joe Sargiano, 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 law. All 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 as of the date of this conference call, August 3, 2023. Census Healthcare undertakes no obligation to revise or update any forward-looking statements except as required by law. All forward-looking statements are subject to risks and uncertainties, as described in the company's Forms 10-K and 10-Q. During today's call, references will be made to certain non-GAAP financial measures. Census believes these measures provide useful information for investors, yet they 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-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 Sardano. Joe?

Thank you, Kim, and good afternoon, everyone. Our second quarter financial results showed improvement over the first quarter. During Q2, we shipped 13 systems, including four SRT systems outside the U.S., and six SRT100 vision systems, up from 10 systems shipped during the first quarter of 2023, but down from 33 systems shipped in the prior year quarter. During the quarter, we did achieve a milestone. We have now shipped over 700 systems, 708 to be exact in total, and are making progress as we drive towards 1,000 systems within the next couple of years. If you recall, we delivered the number 500 system during our 11th anniversary year. I made the statement during our then earnings call that we would achieve the next 500 units in half the time. So far, we are on track, and we look forward to a better second half of 2023. For Q3, revenues were $4.5 million, an increase of 33% sequentially, but down from the $12.1 million a year ago. As discussed on last quarter's conference call, many of our customers depend on elective aesthetic procedures as a meaningful source of practice, revenue, and profit, and we are hearing encouraging feedback that patient volumes and procedure mix are improving. As such, we continue to build inventory and prepay for components. We're confident that we are planning appropriately, and we are receiving positive feedback from our customers that they are experiencing the return of their patients as volumes slowly grow back to previous levels. And speaking of volumes, our surveys of Medicare show that SRT is experiencing a 27% treatment growth rate year over year for the past six years. If this growth utilization rate continues at its current pace, SRT will soon become the treatment of choice for non-melanoma skin cancer. Our confidence is high and we've been building inventory and prepaying for components. We expect to ship at least 60 SRT systems during 2023. Concurrently, we are working on programs that will address any remaining hesitancy for our prospects and put us back on a growth trajectory. Our advanced technology is expected to play a key role in our growth with Sentinel IT front and center. This is our HIPAA-compliant software that stores patient data for multiple clinic purposes and will include artificial intelligence to allow customers to better manage their practices and data. Sentinel IT is expected to play a key role in our growth, and we launched our Sentinel Census Cloud capabilities at the American Academy of Dermatology annual meeting this past March. This new feature of Sentinel is a cloud-based asset management remote monitoring and diagnostic platform and is also now available on our lasers. The platform boasts continuous remote monitoring to track the status of a system from any web browser or iOS device. Continuous backups ensure that valuable information is safely stored in the cloud and allows providers with multiple locations or group practices to monitor their equipment remotely at all times. The Census cloud system also allows providers to monitor any service issues, such as calibration, monitoring voltage and temperature, without having to send an engineer to the field. As you may expect, Sentinel IT allows us to track system use in real time, an important feature that may support new sales programs. We look forward to showcasing IT and our SRT products at local trade shows, as well as the American Society for Therapeutic Radiation Oncology, beginning October 1st. Although the sales cycle is longer for the hospital market, radiation oncology is a highly attractive opportunity as it gains interest in the skin cancer market. During the first quarter, we announced the sale of a system to a hospital in the Northeast, and we are engaged with several more hospital systems. We also introduced new and improved high-resolution ultrasound technology to provide a see-and-treat capability. This leads to great outcomes and patient reassurances because the physician can actually see the impact of each treatment on the lesion and lesion resolution after treatment. Our fair market value leasing program results in an ROI with only 2 to 2.5 patients treated a month, Interest in this program remains high, as evidenced by booth traffic at the conferences and trade shows we've been attending. Our customers are also inquiring about other types of sales programs, and we are actively looking at potential options. These activities are vital to our future. Not all dermatologists know about the attractiveness of SRT, as many still need to be educated. So, given the higher reimbursement and favorable comparisons to Mohs, Overall, we've stepped up our marketing and education programs. While we've always had a presence at the key larger conferences, we're increasing our presence at smaller regional conferences. These events allow us to get closer to our customers without so many other companies competing for the attention. They also are more cost-effective. You can follow us on Facebook or Instagram to get a sense of how active we are. So with that overview, I'd like to turn the call over to Michael Sardano for a bit more color on our plans and our priorities. Michael?