Strata Skin Sciences, Inc.

ladies and gentlemen thank you for standing by good afternoon and welcome to the stratus skin sciences inc second quarter 2024 financial results and corporate update conference call at this time all participants are in a 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 please press star then one on your telephone keypad. To withdraw your question, please press star then two. Participants of this call are advised that the audio of this conference call is being broadcast live over the internet and is also being recorded for playback purposes. A webcast replay of the call will be available approximately one hour after the end of the call through February 14th, 2025. I would now like to turn the call over to Joey Delahousie of Core IR, the company's investor relations firm. Please go ahead, sir.

Thank you, Betsy. Good afternoon, and thank you for participating in today's conference call. Earlier this afternoon, the company released its financial results for the quarter ended June 30, 2024. A copy of that press release can be found on the company's website at www.strataskinsciences.com under the Investors tab. Joining me on today's earnings call from Stratiskin Sciences Management Team are Dr. Dolab Rafialli, Chief Executive Officer, and Chris Lesovitz, Chief Financial Officer. During this call, management will be making forward-looking statements, including statements that address Stratiskin Sciences' expectations for future performance or operational results. Forward-looking statements involve risks and other factors that may cause actual results to differ materially from those statements. For more information about these risks, please refer to the risk factors described in Stratiskin Sciences' most recently filed annual report on Form 10-K and subsequent periodic reports followed with the SEC and Stratiskin Sciences press release that accompanies this call, particularly the cautionary statements in it. The content of this call contains time-sensitive information that is accurate only as of today, August 14, 2024. Except as required by law, Stratiskin Sciences disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur after this call. It is now my pleasure to turn the call over to CEO, Dr. Dolo Raffaele.

Thanks, Joey, and good afternoon to everyone on the call. During the second quarter, we made continued financial and strategic progress in turning our business around. Total revenue of 8.4 million grew 2% year-over-year. Total operating expenses declined approximately $860,000, or 14% year-over-year, and our loss from operations declined by $1.5 million to roughly $500,000 from approximately $2.0 million last year. On the last quarterly earnings call, I mentioned that we expected to ramp our DTC marketing span into year end to create additional patient awareness about extract and its ability to treat psoriasis, eczema, and vitiligo, and that is still the plan. Our DTC results thus far are encouraging. As we grew the number of extract patients appointments in the second quarter, from our first quarter levels. Additionally, our cost per lead and cost per appointment metrics thus far in 2024 are lower than that seen in 2021 when we were less focused on DTC like we are now. Given our DTC success thus far in the first half of 2024, we have expanded from our initial DTC focus in just four marketing areas in the Metro Northeast to 28 active marketing areas with a more national focus on lead generation. Our gross domestic recurring billing in the second quarter were down 6% year-over-year, following the first quarter decline of 3% year-over-year. We continue to believe we are near trough levels, and with increased DTC efforts, we will turn positive on this metric. These last two quarters of low and mid single digit declines are in contrast to year over year declines of 15%, 12%, and 14% in the second quarter 2023, third quarter 2023, and fourth quarter 2023, respectively. With respect to our strategy of redeploying underperforming extract devices in our installed base, evidence that we are committed to this strategy lies in our installed base of extract devices declining from 907 units at the end of the first quarter to 881 units at the end of June. Again, this is a concerted effort to redeploy our devices in clinics that can drive higher utilization and procedural volume or sell such devices. This effort helped the second quarter equipment revenue increase by 11% from $2.8 million in the second quarter of 2023 to $3.1 million in the second quarter of 2024. We plan to continue to optimize our extract footprint here in the US in the coming quarters. If we are successful in the coming quarters, and it will take some time, in driving utilization to levels seen before the COVID-19 pandemic, we could increase our annual revenue by approximately $8 million and at incrementally higher margins without having to increase the install base. Our domestic install base of TheraClear X devices continues to grow, and we ended the second quarter at 117 devices in the U.S. as compared to 92 at the end of the first quarter. During the second quarter, more patients were pre-approved for photognomatic acne treatment with the TheraClearX device than in the first quarter. Recent published studies are highlighted in press releases over the past few months. points to a growing body of evidence with respect to the effectiveness and safety of our TheraClear X platform for mild to moderate acne. Our goal is for dermatologists and patients alike to have increased awareness of our photonumatic treatment and see it as a viable alternative in the large acne treatment market, either as monotherapy or as an adjunct therapy. As study results show, it can be effective in either scenario. We are focused on growing our TheraClear X presence with the National Dermatology Clinic Group's accounts that accounts for nearly 40% of the extract in stool base, along with high acne volume accounts across all regions. Since the end of the second quarter, we completed a financing that raised $2.1 million in gross proceeds. I believe in our strategy focus and approach and showed the confidence I have by participating in this offering. Similarly, insiders and longstanding existing institutional shareholders also participated, demonstrating their conviction in our corporate direction. The proceeds will be used to continue our turnaround and growth efforts. Now I'd like to turn the call over to Chris, who will review our financial results in more detail. Chris.