Sensus Healthcare, Inc.

Good day and welcome to the Census Health Care fourth quarter and full year 2023 financial results conference call. All participants will be in a listen only mode. And should you need any 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 a touch tone phone. And to withdraw your question, please press star then two. Please also note that this event is being recorded today. I would now like to turn the conference over to Kim Golodetz. Please go ahead.

Thank you, operator. This is Kim Golodetz 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, census, 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, February 8, 2024. 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-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. Our fourth quarter financial results reflects our customers' acclimation to an inflationary environment as well as their understanding of the compelling financial proposition and better patient outcomes of SRT to treat non-melanoma skin cancer and keloids. Sales improved substantially as we shipped 33 systems during the quarter, including three SRT systems outside the United States. This brings the total number of units shipped in 2023 to 66 units. We are fast approaching a total unit installation of 800 systems. For Q4, revenues were $12.6 million versus $13.1 million a year ago, up more than threefold sequentially. We expect an uptick in the fourth quarter. are seasonally strongest as utilization of SRT to treat non-melanoma skin cancer continues to increase. This increased utilization is being driven by favorable reimbursement and aging population and clinical results that are at least as good, if not better, than Mohs surgery. For quite some time, customers and prospects alike have been asking for new ways to add SRT to their practices. As always, we listen closely to our market and we're delighted to meet their needs with highly competitive offering. This new recurring revenue model complements our capital equipment sales model, which you'll recall was enhanced with our fair market value lease, which we introduced in 2021. This new model provides recurring revenue to Census and expands our market by providing another viable option to bring SRT to dermatology practices. During the fourth quarter, we made our first placement under this model. We've been carefully preparing this recurring revenue model over the past year, making sure that the economics work for both our customers and for Census, and ensuring we were abiding by all applicable laws and regulations. Note also that the capabilities of SRT 100 Vision with image-guided ultrasound and Sentinel technology make the recurring revenue model possible. I've mentioned on previous quarterly calls that this advanced technology is expected to play a key role in our growth, and now you may understand why we've been so excited with Sentinel. This is our HIPAA-compliant software with clinical, billing, and asset management utility that also allows us to track utilization in real time. This technology is ideal for better managing dermatology clinics for all of our customers and is a census healthcare exclusive. During 2023, we also introduced an important new and improved high-resolution ultrasound technology to provide see and treat capability. This leads to great clinical outcomes because the physician can actually see the impact of each treatment on the lesion and lesion resolution after treatment. We're looking forward to more directly benefiting from the SRT treatment growth rates we've seen Recall that earlier in 2023, we found in our surveys of Medicare that SRT experienced a 27% year-over-year treatment growth rate for the six years we reviewed. Should this growth rate continue, SRT will soon become the treatment of choice for non-melanoma skin cancer. We're very excited to be interacting with customers and prospects during the coming weeks. This weekend, we'll be showcasing our SRT products, in particular, the SRT100 Vision IGSRT system and the Sentinel Technology and Sensus Cloud capabilities at the South Beach Symposium, which begins today in Miami. We'll also be at the Winter Clinical, also in Miami, beginning February 16th. We'll follow those conferences up with the American Academy of Dermatology's annual meeting being held March 8th through 12th in San Diego, where we will have a very strong presence. While dermatology is our primary market, we continue to engage with the radiation oncology market, which is mainly a hospital-based channel. As mentioned last quarter, we've had good success in this area, having recently placed an SRT system at Cape Cod Hospital. As a reminder, this market has a longer sales cycle as we continue to see increased interest With respect to the transdermal infusion product, we filed our 510K application with the U.S. FDA in October of 2023 and are hopeful that we'll be hearing from the agency in the coming weeks. This system will, for example, allow platelet-rich plasma, or PRP, to be applied to the scalp in a pain-free hair restoration experience. Posters have already been presented on the application of hyperhidrosis or overactive sweat glands. Our transdermal system includes Sentinel IT solution capabilities, as do all six of our census-branded Aesthetic Smart lasers. We will be exhibiting our TDI product at the upcoming dermatology trade shows as a works in progress. With those remarks, I'll turn the call over to Michael Sardano, who, in addition to his duties as President and General Counsel, joined our Board of Directors last week. He'll give you a brief update on our international business and talk about our new collaboration with Curays. Michael.