Sensus Healthcare, Inc.

Good afternoon and welcome to the Census Health Care Third Quarter 2023 Financial Results Conference Call. All participants will be in listen-only mode. If you do 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 this event is being recorded. I would now like to turn the conference over to Kim Sutton-Golodeff, LHA Investor Relations. Please go ahead.

Thank you. This is Kim Golodeff 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. All statements other than historical facts that address activities since this healthcare 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 as of the date of this conference call, November 9th, 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 form 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-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 Sardana. Joe?

Thank you, Kim, and good afternoon, everyone. Our third quarter financial results reflected typical summer seasonality and macroeconomic conditions with economic challenges continuing to affect many dermatologists. During Q3, we shipped 11 systems, including three SRT systems outside the U.S. and five SRT 100 visions to a very large customer. Total unit sales now stand at almost 720 units, and we expect the seasonally strong fourth quarter to help us advance towards our yearly and long-term goal. For Q3, revenues were $3.9 million compared with $9.0 million a year ago. As discussed last quarter's conference call, many of our customers depend on elective aesthetic procedures as a meaningful source of practice and revenue profit. And despite hearing encouraging feedback that patient volumes and procedures mix are improving, macroeconomic conditions along with our usual seasonal summer lull made for a soft quarter. However, please note that our main focus has always been on the second half of 2023. We continue to believe in a strong Q4 with five weeks in. We used our strong cash position to continue to build inventory, so that we will be able to quickly address demand as our customers adjust to inflation and interest rates. Utilization of SRT to treat non-melanoma skin cancer continues to increase, driven by favorable reimbursement and aging population and clinical results that are at least as good, if not better, than Mohs surgery. I'll remind you that last quarter we told you that our review of Medicare's shows that SRT experienced a 27% year-over-year treatment growth rate for the past six years. If this growth rate continues at its current pace, SRT will soon become the treatment of choice for non-melanoma skin cancer. Our confidence remains high, and we continue to work concurrently on programs that will address any remaining hesitancy for our prospects and put us back in 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 with clinical, billing, and asset management utility that also allows us to track utilization. We enhanced Sentinel earlier this year by adding Census Cloud with its remote monitoring capabilities to track and monitor SRT systems. This is ideal for better managing dermatology clinics. We showcased Sentinel and Census Cloud at the American Academy of Dermatology annual meeting this past March. And looking ahead, the fourth quarter is off to a good start with participation in the Fall Clinical Dermatology Conference and the American Association of Radiation Oncology annual meeting, both in October. We are seeing a trend based on the activity at our booth and the attention our products receive at these important trade shows, in particular the SRT100 Vision, Sentinel IT and Census Cloud capabilities, it bolsters our optimism for the future as we enter Q4, which traditionally is our year's strongest sales quarter. As a reminder, 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 also introduced this year an important new and improved high-resolution ultrasound technology to provide 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. Turning to the hospital market, radiation oncology is a highly attractive opportunity as it gains interest in the skin cancer treatment market. Although selling to hospitals is a longer selling cycle, it is a market well worth pursuing as we build footholds in the channel. Recall that earlier this year we sold a system to a hospital in the Northeast, the Beth Israel Deaconess Hospital in Plymouth, Massachusetts, and now during Q3 we sold another SRT to Cape Cod Hospital in Hyannis, Massachusetts. And we are engaged with several more hospital systems and believe that the positive experiences of these recent hospital customers will serve as supporting references as we penetrate this market. The veterinary market also offers some longer term potential for growth. We were delighted that the Colorado State University Veterinary Teaching Hospital posted on social media this week that in a clinical trial that they call groundbreaking, They treated horses diagnosed with squamous cell carcinoma with SRT. This is the most common eyelid tumor in horses. CSU said, I quote, the initial results are showing excellent success. We're eagerly awaiting the eventual completion of this trial and the publication of its results in a peer reviewed journal. So with that overview, I'd like to turn the call over to Michael Sardano for a bit more color on our plans and priorities. Michael?