Milestone Scientific Inc.

Greetings. Welcome to the Milestone Scientific Second Quarter 2026 Financial Results and Business Update Conference Hall. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, James Carbonara,

Thank you, Operator. Before we begin, please note that today's call will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Please refer to our earnings release as well as our filings with the SEC, including our 2025 Form 10-K, for discussion of these risks. A replay of this call will be available shortly after its conclusion. With that, I'll turn the call over to our CEO, Eric Hines.

Thank you, James, and good morning, everybody. And thank you for joining our call today. Our second quarter results reflect continued execution of the strategy we laid out at the start of the year, discipline cost management, and focused investment in our highest growth opportunities. Total revenue for the second quarter was $2.8 million, an increase of 22% compared to the second quarter of 2025, bringing our first half revenue to $5 million, up nearly 10% year-over-year. Our base business performed very well, contributing $2.4 million in the quarter, further supported by approximately $500,000 in upside from international orders. In the medical business, CompuFlow continued to build momentum, with medical segment revenue growing 231% compared to the second quarter of last year. While medical is still growing from a small base, there is real validation of the technology's value proposition, and we continue to scale the copy bill flow advisor program launched in February, adding physician advisors and expanding procedural use across additional milestone administrative contractor jurisdictions and commercial payers. On the reimbursement front, our healthcare providers are actively submitting claims and have received favorable payment outcomes from Medicare and the Novitas and First Coast jurisdictions, as well as from commercial payers, which includes personal injury protection and workers' compensation plans. We currently have established $325 payments established under Novitas and First Coast fee schedules covering three regions and 13 states. And we're continuing to pursue the remaining max. Alongside our three distribution partners in these areas, we plan to begin launching direct sales efforts in each region starting immediately. We also achieved an important milestone third-party validation this quarter. following the publication of a peer-reviewed University of Texas Medical Branch study in operative neurosurgery, which associated CompuFlow guided epidural access during spinal cord stimulator implantation with a 91% reduction in the odds of composite complications. The compelling evidence reinforces CompuFlow's differentiated value proposition and supports growing physician acceptance and expanded utilization across critical spinal and epidural procedures including epidural steroid injections, spinal cord stimulator implantation, obstetric epidurals, thoracic and cervical epidurals, neuromodulation therapies, and surgical epidural anesthesia. CopyFlow has now been evaluated or utilized across more than 40 universities, academic medical centers, and teaching hospitals worldwide. Subsequent to quarter end, we expanded the addressable market for copy flow with a strategic distribution agreement with Red One Medical, an established federal healthcare distributor to bring copy flow to the U.S. Department of Veterans Affairs, Department of Defense, Defense Health Agency, Indian Health Services, and other federal healthcare organizations, systems that collectively serve more than 18 million enrolled veterans and military beneficiaries. We believe this partnership gives us an efficient pathway into one of the largest and most strategically important healthcare markets in the country. On the dental side, we signed a new national distribution partner to expand our sales network and complement our e-commerce business, and we continue to build on our international footprint with a recent registration approval in Uzbekistan and additional registrations targeted in Japan, Mexico, Turkey, and India in the coming quarters. We also launched the first phase of our AI strategy this quarter with the pilot review of Milo, our AI-enabled digital engagement platform at the Aspen 2026 Conference in Miami Beach. Milo is designed to answer product questions, provide educational information, support lead qualification, and connect healthcare professionals with our sales, clinical, and customer support teams, helping us engage prospective customers on their own time, which we believe unlocks a meaningful opportunity with small commercial teams. Aspen was also a strong showing commercially, generating more than 40 qualified leads, and it marked the launch of our hashtag NoWetTaps campaign, voting on the complication reduction data we're seeing with CompuFlow. In terms of governance, we strengthen our board of directors with Benedetta Casamento transitioning from chair to executive chair and the addition of two new independent directors, Greg Schilling and Kellyanne Olto, who bring additional healthcare, technology, finance, and governance expertise. Turning to our capital position, we continue to operate for the $2.51 million private placement we completed in April. We are not currently planning to raise additional capital and continue to evaluate incremental sources as our net operating loss carry forwards in R&D tax credits programs and remain focused on funding the business through the disciplined execution that was meaningfully narrowed our losses over the past year. We are reaffirming our 2026 guidance of $9.8 million to $10.2 million in total revenue, representing double-digit growth for the year, with CompuSol expected to grow at a faster rate than the overall business for the remainder of 2026. I do want to set expectations appropriately for the third quarter. Our second quarter benefited from two large international orders that we don't expect to occur in the third quarter, and the third quarter is typically a seasonally slower period for us given the summer months. Please keep that in mind as you model the quarter. That said, we expect our medical initiatives, including our expanding Medicare reimbursement footprint and the direct sales launch we are now making alongside our distribution partners, to continue building and to contribute more meaningfully to the second half of the year. And we'll provide more detail on the trajectory alongside of our third quarter results in November. I'll now turn the call over to Keisha to review our financials. Keisha?