Biostem Technologies New

Ladies and gentlemen, thank you for standing by. And welcome to the BioSTEM Technologies second quarter financial results call. All lines have been placed on mute to prevent any background noise. After speaker's remarks, there will be a question and answer session. You may submit a question at any time during the call by using the Q&A box on the webcast portal. Now, I would like to turn the call over to Nick Johnson of Russo Partners. You may begin your conference.

Good afternoon, everyone, and thank you for joining our conference call to discuss BioSTEM's second quarter 2022 financial results and corporate highlights. Leading today's call is Jason Medeshevsky, Chief Executive Officer. We will also be joined by Michael Fortunato, our controller. Before we begin, I would like to remind everyone that our remarks today may contain forward-looking statements based on the current expectations of management which involve inherent risks and uncertainties that could cause actual results to differ materially from those indicated, including risks and uncertainties described in the company's filing with the over-the-market. You are cautioned not to place any undue reliance upon any forward-looking statements which speak only as of the date may change at any time in the future. Although it may be voluntary to do so from time to time, the company undertakes no commitment to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by the applicable security laws. This call will also include references to certain financial measures that are not calculated in accordance with generally accepted accounting principles or GAFs. We generally refer to these as non-GAAP financial measures. Reconciliations of those non-GAAP financial measures are the most comparable measures calculated and presented in accordance with the GAAP are available in the earnings press release on the investor relations portion of our website. With that, I'm now pleased to turn the call over to Jason Medeshevsky. Jason Medeshevsky Thank you, Nick.

Good afternoon, everyone, and thank you for joining us. Today marks a major milestone for BioSTEM technologies, as this is the first of many earnings calls. Before Mike discusses in more detail the financial results, I'd like to outline seven key business objectives that will support our continued accelerated growth, commercialization performance, and fortify BioSTEM technologies as a recognized leader in perianal tissue allografts for regenerative therapies. First, As I've shared previously, we have put our company on a tremendous growth trajectory for 2022 and beyond, and we are pleased to announce that we continue to exceed that trajectory with an exceptional financial performance by our commercial team for the second quarter of 2022. Gross revenue for Q2 was $2.2 million, with an 82% gross margin on our product lines. Second, We are transitioning from indirect to direct sales and implementing training programs for our national commercial team to deliver compelling messaging to our clinical partners in the private and federal markets about the value of our product lines. We're setting out to add a minimum of five commercial team members per quarter starting in Q3 of 2022 with a total team size goal of 25 members by Q4 of 2023. In anticipation of the upcoming launch of Vendage AC and Vendage Optic, which we expect following reimbursement approval of Q1 2023, we are strategically building out our commercial team in eight specific regions throughout the United States and introducing medical education programs specifically to Vendage AC and Vendage Optic and expanding our current Vendage programs. With the addition of these two product lines entering the wound care market this year and expanding commercial team of our product experts, we're confident in our ability to execute our long-term strategic plan that will help us to increase profitability. Third, we have invested heavily in our sales and ordering platform. We anticipate a rollout of our new Salesforce B2B commerce platform in early to mid Q4, as well as deploying our commercial team with the Salesforce Sales Cloud CRM. We feel the B2B platform is a game changer for our customers as it will give them easier access to order product and support documentation to increase the success of product reimbursement. Also, with Salesforce Sales Cloud, we will have better insight on our commercial pipeline and our commercial team's interactions with clinical providers throughout the Salesforce data analytics platform for future forecasting. Fourth, We have recently launched new product web pages that highlight the unique advantages of our Vendage, Vendage AC, and Vendage Optic product lines. These bold new designs describe the healing, natural, and superior biological retention attributes of our proprietary bioretain process. We will continue to launch the updated branding in the months to come, including a new corporate website, conference and exhibit booths, and a full suite of customer-facing support materials. Fifth. We have met with the HICS-16 at CMS in anticipation of performing a new submission for a cue code from Center of Medicare and Medicaid Services for Vendage AC, an allograft composed of two layers, amnion and chorion, which is intended for use as a protective covering for soft tissue wounds. We also have gone through the same process for Vendage Optic, an allograft composed of a single layer, or amnion, which is intended for use as a protective covering during the repair of ocular surfaces. We expect to receive favorable judgment in the first quarter of 2023 and are excited to add those two additional items to our commercial team's product offerings. Six, our operations and quality teams remain dedicated to continuous improvement and then working to implement efficiencies within their respective departments. Operationally, we have started construction on a new clean room, which upon completion will double our current processing capacity. We have also invested in new technology and equipment to bring more of the processing activities in-house and decrease the overall time it takes to process a donor. In the quality department, the focus has been transitioning the quality management system, or QMS, from paper-based to an electronic system. After review of numerous systems, the team has commenced implementation of master control, including their MX and PX modules, to move both the quality documentation and processing records to electronic formats. Not only does that improve the efficiency of the current processes, this system also reduces the probability of human error. Last, we are well positioned to overcome the challenges of the regulatory and market positions of traditional wound care as we push the boundaries in the field of regenerative medicine. We are continuing with the development of new products, expanding our intellectual property portfolio, and furthering clinical and scientific research. This includes receiving six provisional patents around our bioretain process over the past year, obtaining approval of our peer-reviewed article around standardizing reporting of amnion and amnion-coordinated allograft data for wound care, and to be published in the Health Sciences Reports, and plans to initiate clinical research on lower extremity wounds in the near term. With that, let me turn the call over to Mike to review the second quarter and year-to-date 2022 financials. Mike?