Q2 2022 Daxor Corp Earnings Call

August 25, 2022

Okay.

Operator: Ladies and gentlemen, thank you for standing by. Good afternoon, and welcome to the Daxor Corporation H1 2022 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, you may press star then one on your telephone keypad.

Speaker 1: Ladies and gentlemen, thank you for standing by. Good afternoon, and welcome to the Daxler Corporation First Half 2022 Financial Results and Corporate Update Conference Call.

Ladies and gentlemen, thank you for standing by.

Afternoon, and welcome to the Daxor Corporation first half 2022 financial results and corporate update conference call.

Speaker 1: At this time, all participants are in a Listen Only mode.

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.

Speaker 1: Should you need assistance, please civil conference specialist by pressing the star key followed by zero.

Speaker 1: After today's presentation, there will be an opportunity to ask questions.

After today's presentation there'll 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.

Speaker 1: To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press this.

Operator: To withdraw your question, please press star then two. Participants of this call are advised that the audio of this conference 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 25 November 2022.

Speaker 1: Participants of this call are advised that the audio of this conference is being broadcast live over the internet and is also being recorded for playback purpose.

Participants of this call are advised that the audio of this conference is being broadcast live over the Internet and is also being recorded for playback purposes.

Speaker 1: A webcast replay of the call will be available approximately one hour after the end of the call through November 25, 2022.

A webcast replay of the call will be available approximately one hour. After the end of the call through November 25th 2022.

Operator: I would now like to turn the call over to Scott Gordon, President of CORE IR, the company's investor relations firm. Please go ahead, sir.

Speaker 1: I would now like to turn the call over to Scott Gordon, President of Core IR, the company's investor relations firm. Please go ahead, sir. Scott Gordon, President of Core IR, The company's investor relations firm.

I would now like to turn the call over to Scott Gordon President of core IR, The company's Investor Relations firm. Please go ahead Sir.

Speaker 2: Thank you, Gary. Good afternoon, everyone, and thank you for participating in today's conference call.

Scott Gordon: Thank you, Gary. Good afternoon, everyone, and thank you for participating in today's conference call. Joining me from Daxor's leadership team are Michael Feldschuh, Chief Executive Officer, and Robert Michel, Chief Financial Officer. During this call, management will be making forward-looking statements, including statements that address Daxor's expectations for future performance or operational results. Forward-looking statements include 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 Daxor's most recently filed annual report on Form N-CSR and subsequent periodic reports filed with the SEC and Daxor's 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, 25 August 2022.

Thank you Gary good afternoon, everyone and thank you for participating in today's conference call.

Speaker 2: Joining me from DAXor's leadership team are Michael Thaleshu, Chief Executive Officer, and Robert Michel.

Joining me from Dax or his leadership team are Michael <unk>, Chief Executive Officer.

Robert Michelle.

Chief Financial Officer.

Speaker 2: During this call, management will be making forward-looking statements, including statements that address AXAAR's expectations for future performance or operational results.

During this call management will be making forward looking statements, including statements that address <unk> expectations for future performance or operational results.

Speaker 2: forward-looking statements include risks and other factors that may cause actual results to differ materially from the statement.

Forward looking statements include risks and other factors that may cause actual results to differ materially from those statements.

Speaker 2: For more information about these risks, please refer to the risk factors described in DAXOR's most recently filed annual report on form NCSR and subsequent periodic reports filed with the FCC and DAXOR's press release that accompanies this call, particularly the cautionary statement in it.

Scott Gordon: For more information about these risks, please refer to the risk factors described in Daxor's most recently filed annual report on Form N-CSR and subsequent periodic reports filed with the SEC and Daxor's 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, 25 August 2022.

For more information about these risks please refer to the risk factors described in <unk>. Most recently filed annual report on form N CSR and subsequent periodic reports filed with the SEC and <unk> press release that accompanies this call, particularly the <unk>.

Generic statement in it.

Speaker 2: The content of this call contains time-sensitive information, but is accurate only as of today, August 25, 2022.

The content of this call contains time sensitive information.

Accurate only as of today August 21st 2022.

Scott Gordon: Except as required by law, Daxor 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 Michael Feldschuh. Michael, please go ahead.

Speaker 2: The acceptance required by law, the Axelor disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur after this call.

Except as required by law <unk> disclaims any obligation to publicly update or.

By any information to reflect events or circumstances that occur after this call.

Speaker 2: It is now my pleasure to turn the call over to CEO Michael Falchion. Michael, please go ahead.

It is now my pleasure to turn the call over to CEO , Michael <unk>. Michael. Please go ahead.

Michael Feldschuh: Thank you very much, Scott. Good afternoon, everyone. Thank you for joining us. It's my pleasure to report on Daxor's first six months results for the period ended 30 June 2022. I've written to shareholders in the past that for the company to realize the tremendous potential of our paradigm-shifting medical technology, we need to execute well in several key areas. We have strong clinical results, but they have to be accompanied by commensurate health economic outcomes. Our new research milestones showing value have to be paired with our next generation diagnostic systems, offering the ability to easily adopt our technology into the clinical workflow. The promise of our systems must be supported by engagement with our customers through clinical support, top site medical education, and a very well-run sales support team.

Thank you very much Scott.

Speaker 2: Good afternoon, everyone. Thank you for joining us. It's my pleasure to report on Daxor's first six months' results before the period ended June 30, 2022.

Good afternoon, everyone. Thank you for joining us it's my pleasure to report on tax was first six months results for the period ended June 30th 2022.

Speaker 2: I've written to shareholders in the past that for the company to realize the tremendous potential of our paradigm shifting medical technology, we need to execute well in several key areas.

I've written to shareholders in the past that for the company to realize the tremendous potential of our paradigm shifting medical technology, we need to execute well in several key areas.

Speaker 2: We have strong clinical results, but they have to be accompanied by commensurate health economic outcomes.

Michael Feldschuh: We have strong clinical results, but they have to be accompanied by commensurate health economic outcomes. Our new research milestones showing value have to be paired with our next generation diagnostic systems, offering the ability to easily adopt our technology into the clinical workflow. The promise of our systems must be supported by engagement with our customers through clinical support, top site medical education, and a very well-run sales support team.

We have strong clinical results, but they have to be accompanied by commensurate health economic outcomes.

Speaker 2: Our new research milestones showing value have to be paired with our next generation diagnostic systems, offering the ability to easily adopt our technology into the clinical workflow. The promise of our systems must be supported by engagement with our customers through clinical support, top-five medical education, and a very well-run sales...

Our new research milestones showing value has to be paired with our next generation diagnostic systems offering the ability to easily adopt our technology to the clinical workflow.

Most of our systems must be supported by engaging with our customers to clinical support.

Medical education.

Wildlife self support.

Speaker 2: I'm pleased to announce that in the last six months, we've made important breakthroughs building on our focus in each of these key areas. Balancing our growth and commercialization with strategic investment, fueling our next generation systems, which are the most important technology launch for the company in 20 years. Our opening slide is from January of this year, as we listed on the NASDAQ Stock Exchange, proud to show us joined by some of our board members and our key executives at the NASDAQ since our list.

Michael Feldschuh: I'm pleased to announce that in the last 6 months, we've made important breakthroughs building on our focus in each of these key areas, balancing our growth in commercialization with strategic investment, fueling our next generation systems, which are the most important technology launch for the company in 20 years. Our opening slide is from January of this year as we listed on the Nasdaq Stock Market. Proud to show us, joined by some of our board members and our key executives at the Nasdaq since our listing. A quick reminder for those of you who are new to the Daxor story. Daxor is the global leader in blood volume measurement technology focused on blood volume testing innovation. We are headquartered and operate out of a 20,000-square-foot state-of-the-art production and research and development facility located in Oak Ridge, Tennessee. What is blood volume about?

I'm pleased to announce that in the last six months, we've made important breakthroughs building on our focus in each of these key areas balancing our growth and commercialization with strategic investments fuelling. Our next generation systems, which are the most important technology launch for the company in 20 years. Our opening slide is from January of this year as well.

Listen on the NASDAQ stock exchange.

Michael Feldschuh: Proud to show us, joined by some of our board members and our key executives at the Nasdaq since our listing. A quick reminder for those of you who are new to the Daxor story. Daxor is the global leader in blood volume measurement technology focused on blood volume testing innovation. We are headquartered and operate out of a 20,000-square-foot state-of-the-art production and research and development facility located in Oak Ridge, Tennessee. What is blood volume about?

Now to show US joined by some of our board members and our key executives at the NASDAQ since our listing.

Speaker 2: So a quick reminder for those of you who are new to the DAXOR story, DAXOR is the global leader in flood volume measurement technology focused on flood volume testing innovation. We are headquartered and operate out of a 20,000 square foot state of the art production and research and development facility located in Oak Ridge, China.

A quick reminder, for those of you who are new to the Docs. We're story, that's where he is the global leader in by Bayou measurement technology focused on blood volume testing innovation. We are headquartered in operate out of a 20000 square foot state of the art production and research and Uh Huh.

And development facility located in Oak Ridge, Tennessee.

Yeah.

Speaker 2: So what is blood volume about? What does it serve? What markets does it address?

So what is blood volume about what does it serve what markets does it address.

Michael Feldschuh: What does it serve and what markets does it address? Blood volume management is central to a number of very widespread and costly conditions within our healthcare system. Blood volume derangement is a central feature and something that has to be managed in such very costly areas such as heart failure, which affects more than 6 million patients in the US alone, for which the US spends more than $30 billion a year managing. Areas such as hypertension, sepsis, critical care, and syncope, just to name a few areas. In total, these areas represent some of the costliest spends in our healthcare system and the chief focus of reimbursement and payers such as CMS in seeking to improve outcomes for their patients and for the healthcare system overall. A quick background, though.

Speaker 2: Blood volume management is central to a number of very widespread and costly conditions within our healthcare system. Blood volume arrangement is a central feature and something that has to be managed in such very costly areas such as heart failure, which affects more than 6 million patients in the US alone, for which the US spends more than $30 billion in your managing areas such as hypertension.

Blood volume management is central to a number of very widespread and costly conditions within our health care system, but volume derangement is a central feature and something that has to be managed in such very costly areas, such as heart failure, which affects more than 6 million patients in the U S alone.

For which the U S spends more than $30 billion and you're managing areas.

Michael Feldschuh: Areas such as hypertension, sepsis, critical care, and syncope, just to name a few areas. In total, these areas represent some of the costliest spends in our healthcare system and the chief focus of reimbursement and payers such as CMS in seeking to improve outcomes for their patients and for the healthcare system overall. A quick background, though.

Areas such as hypertension.

Speaker 2: sepsis, critical care, and syncope, just to name a few areas. In total, these areas represent some of the costliest spends in our healthcare system, and the chief focus of

Sepsis and critical care and syncope just to name a few areas in total these areas.

Represent some of the costliest spends in our health care system and the chief focus of.

Speaker 2: reimbursement and payers, such as CMS, in seeking to improve outcomes for their patients and for the healthcare system overall. Okay.

The endorsement.

Payors such as CMS in seeking to improve outcomes for their patients and for the health care system overall.

A quick background, though the.

Michael Feldschuh: The need for optimal blood volume management is central to effective outcomes in a number of these conditions. Currently, the state of care is that care teams are relying upon a number of inaccurate, costly, and invasive non-direct measurements of volume estimation. You can see from this slide that they include things such as invasive measures such as a right heart cath, non-sensitive, non-specific measures such as chest X-rays or biomarkers, and include things such as clinical exam, which have been proven to be unreliable. They're all inaccurate, many are costly, and some are invasive, and they've all led to inferior outcomes compared to our single blood volume diagnostic metric. What are some of the benefits around blood volume analysis and how does it mesh with the central aims of healthcare today? Healthcare is focused on what's called the Quadruple Aim.

Speaker 2: Needs for optimal blood volume management is central to effective outcomes in a number of these conditions.

Need for optimal blood volume management is central to effective outcomes in a number of these conditions, but currently the state of care is the care teams are relying upon a number of inaccurate costly and invasive non direct measurements of volume estimation.

Speaker 2: But currently, the state of care is that care teams are relying upon a number of inactriate, costly, and invasive.

Speaker 2: non-direct measurements of volume estimation.

Speaker 2: You can see from this slide, the thing includes things such as invasive measures such as a right heart calf.

You can see from this slide that they include things such as invasive measures such as of right heart Cath non.

Speaker 2: non-sensitive or specific measures such as chest x-rays or biomarkers and include things such as clinical exam which have been proven to be unreliable. They're all inactive, many are costly and summer-invasive and they've all led to inferior outcomes compared to our single blood volume diagnosis.

Non sensitive or specific measures such as chest X rays or biomarkers and include things such as clinical exam, which have been proven to be unreliable.

Michael Feldschuh: They're all inaccurate, many are costly, and some are invasive, and they've all led to inferior outcomes compared to our single blood volume diagnostic metric. What are some of the benefits around blood volume analysis and how does it mesh with the central aims of healthcare today? Healthcare is focused on what's called the Quadruple Aim.

And a great. Many are costly and some are a piece of it maybe by light twin fear outcomes compared to our single blood volume diagnostic Patrick.

Speaker 2: What are some of the benefits around blood volume analysis? And how does it match with the central aims of healthcare today?

What are some of the benefits around blood volume analysis, and how does the Nash with central aims of health care today.

Speaker 2: Healthcare is focused on what's called the quadruple aim. That means preventing hospital readmissions of patients that are discharged, individualizing and optimizing the treatment pathway to do things like shorten the length of stay, informing the management of patients so as to operationalize effectively, and to ultimately save hospital resources. All of these things lead to an improvement in both mortality, readmissions, patient satisfaction, and resources.

Health care is.

Focus on whats called the quadruple aim that means preventing hospital readmissions of patients that are discharged individualized and optimizing the treatment pathway to do things like <unk>.

Michael Feldschuh: That means preventing hospital readmissions of patients that are discharged, individualizing and optimizing the treatment pathway to do things like shorten length of stay, informing the management of patients so as to operationalize effectively, and to ultimately save hospital resources. All of these things lead to an improvement in both mortality, readmissions, patient satisfaction, and resource use. Daxor's solution for these significant needs are our blood volume measurement systems. Our current system, which is FDA-cleared, is a 98% accurate direct measurement of total blood volume, plasma, and red cell volume. It is unique in the marketplace. It allows for results within one hour and is covered for both inpatient and outpatient care and is reimbursed by both the CMS system as well as private insurance.

Jordan length of stay.

The management of patients so as Tom preparations effectively and to ultimately exceed hospital resources.

All of these things lead to an improvement in both mortality readmissions patient satisfaction and resource use.

Speaker 2: Baxor's solution for these significant needs are our blood volume measurement systems. Our current system, which is FDA cleared, is a 98% accurate direct measurement of total blood volume plasma and red cell volume. It is unique in the market.

Thanks Horse solution for these significant needs our blood volume measurement systems, our current system, which is F. T a cleared as a <unk>.

Michael Feldschuh: Our current system, which is FDA-cleared, is a 98% accurate direct measurement of total blood volume, plasma, and red cell volume. It is unique in the marketplace. It allows for results within one hour and is covered for both inpatient and outpatient care and is reimbursed by both the CMS system as well as private insurance.

98%.

Accurate direct measurement total blood volume plasma and red cell volume it is unique in the marketplace.

Speaker 2: It allows full results within one hour and is covered for both inpatient and outpatient care and is reimbursed by both the CMS system as well as private insurance.

It allows for results within one hour.

<unk> is covered for both inpatient and outpatient care and is reimbursed by boat CNS system as well as private insurance.

Speaker 2: To date, Dachshund has had over 60,000 tests performed at leading medical centers across the country and has been the subject of over 100 peer-reviewed studies confirming the value of blood volume management and its superior accuracy to the proxies that I just mentioned.

Michael Feldschuh: To date, Daxor has had over 60,000 tests performed at leading medical centers across the country and has been the subject of over 100 peer-reviewed studies confirming the value of blood volume management and its superior accuracy to the proxies that I just mentioned. Here is an updated executive summary of what has been going on at the company in the last 6 months. I'll start first at the operating division level. Going back, looking at a year-over-year 12-month comparison, we've seen pivotal growth in the company and its business prospects. We've seen a strong growth in sales, revenue, and new customer acquisition. While our research and development efforts have been accelerating the development of our next generation blood volume analyzer systems.

To date, that's where it has had over 60000 tests performed at leading medical centers across the country has been the subject of over 100 peer reviewed studies confirming the value.

Finally management and its superior accuracy to the proxies can I just mentioned.

Yeah.

Speaker 2: So here is an updated executive summary of what has been going on at the company in the last six months. I'll start first.

So here is an updated executive summary.

What has been going on at the company in the last six months.

Michael Feldschuh: I'll start first at the operating division level. Going back, looking at a year-over-year 12-month comparison, we've seen pivotal growth in the company and its business prospects. We've seen a strong growth in sales, revenue, and new customer acquisition. While our research and development efforts have been accelerating the development of our next generation blood volume analyzer systems.

I'll start first at the operating division.

Speaker 2: Going back looking at a year over year, 12 months comparison, we've seen pivotal growth in the company and its business possible.

Going back looking at a year over year 12 month comparison, we've seen pivotal growth in the company and its business prospects, we've seen a strong growth in sales revenue and new customer acquisition, while our research and development efforts have been accelerating the development of our next generation blood analyzer systems.

Speaker 2: We've seen a strong growth in sales, revenue, and new customer acquisition while our research and development efforts have been accelerating the development of our next generation blood volume analyzer.

Speaker 2: The company is pleased to report a 92.6% increase in the unaudited revenues of our blood volume diagnostic operating division for the period ended June 30, 2022, as compared to the same period in the prior year. Revenue growth was driven by a combination of the sales and leasing of our capital equipment to hospitals, orders for our single-use disposable blood volume diagnostic kits.

Michael Feldschuh: The company is pleased to report a 92.6% increase in the unaudited revenues of our blood volume diagnostic operating division for the period ended 30 June 2022, as compared to the same period in the prior year. Revenue growth was driven by a combination of the sales and leasing of our capital equipment to hospitals, orders for our single-use disposable blood volume diagnostic kit used in areas such as heart failure, critical care, and other indications, along with a 9.2% increase that was well received by the market. Additionally, revenue growth was driven by U.S. Department of Defense orders, as well as orders from third-party companies contracting with Daxor to conduct blood volume analysis and research on their pharmaceutical products.

<unk> is pleased to report a 92, 6% increase in unaudited revenues for blood diagnostics operating division for the year and for the for.

For the period ended June 30th 2022.

Compared to the same period in the prior year revenue growth was driven by a combination of the sales and leasing of our capital equipment for hospitals.

It is for our single use disposable bloodline diagnostic kit.

Speaker 2: used in areas such as heart failure, critical care, and other indications, along with a 9.2% increase that was well received by the market. Additionally, revenue growth was driven by U.S. Department of Defense orders, as well as orders from third-party companies contracting with Daxor to conduct blood volume analysis and research on their pharmaceutical products.

Used in areas, such as heart failure critical care and other indications along with a nine 2% increase that was well received by the market.

Michael Feldschuh: Additionally, revenue growth was driven by U.S. Department of Defense orders, as well as orders from third-party companies contracting with Daxor to conduct blood volume analysis and research on their pharmaceutical products.

Additionally, revenue growth was driven by U S Department of defense orders as well as orders from third party companies contracting with actual conduct blood volume analysis and research on their pharmaceutical products.

Speaker 2: The company has reported that the number of single-use volume-x diagnostic kits

Michael Feldschuh: The company has reported that the number of single-use Volumex diagnostic kits rose by 49.4% in H1 2022 compared to H1 2021. Growth is being driven by a combination of an increase at existing accounts as well as the addition of some new accounts coming online. The company feels that there are still substantial growth opportunities at existing accounts, as well as room for growth from winning a higher percentage of patients within existing departments, as well as expanding to other departments within hospitals where blood volume analysis devices are present. As of this date, the company has sold in H1 2022, leased or placed 12 new devices for use in either clinical management or research, or a combination of the two.

The company has reported that the number of single use box volume ex diagnostic kits.

Speaker 2: rose by 49.4% in the first half of 2022, compared to the first half of 2021.

Rose by 49, 4% in the first half of 2022 compared to the first half of 2021.

Speaker 2: Growth is being driven by a combination of an increase at existing accounts as well as the addition of new accounts coming online.

Is being driven by a combination of an increase at existing accounts as well as the addition of new accounts coming on.

Speaker 2: The company smells that there is still substantial growth opportunities at existing accounts, as there is room for growth from when we may hire percentage of patients within existing departments, as well as expanding to other departments within hospitals where bloodline analysis devices are present.

Wow.

Michael Feldschuh: The company feels that there are still substantial growth opportunities at existing accounts, as well as room for growth from winning a higher percentage of patients within existing departments, as well as expanding to other departments within hospitals where blood volume analysis devices are present. As of this date, the company has sold in H1 2022, leased or placed 12 new devices for use in either clinical management or research, or a combination of the two.

The company feels that there is still substantial growth opportunities at existing accounts as well.

There is room for growth from winning a higher percentage of patients with an existing departments as well as expanding to other departments within hospitals, where bloodline analysis devices are present.

Speaker 2: As of this day, the company has sold in the first half of 2022, least what placed all new devices for using either clinical management or research or a combination of the two.

As of this date the company has sold.

First half of 2022 leased or placed.

12, new devices.

For use in clinical management, Ob search or a combination of the two.

Michael Feldschuh: Many of these new accounts are just beginning to ramp up and come online, and as they integrate the diagnostic into their treatment protocols, we feel that the need for the product has never been greater. We see a strong long-term market for the use of our product within the heart failure segment. The current population of heart failure patients is 6 million in the United States, 1 million of whom will be hospitalized, it is anticipated, over the next 12 months. The total number of heart failure patients is set to rise to more than 8 million over the course of the next 6 years. As the baby boom generation continues to age and hospitals are under increasing pressure to improve outcomes and contain costs.

Speaker 2: Many of these new accounts are just beginning to ramp up and come online. And as we integrate the diagnostic into their treatment protocols, we feel that the need for the product has never been greater.

Many of these new accounts are just beginning to ramp up and come online.

And as we integrate the diagnostics into their treatment protocols.

We feel that they need for the product has never been greater.

Speaker 2: We see a strong long-term market for the use of our product within the heart failure segment. The current population of heart failure patients is 6 million in the United States, 1 million of whom will be hospitalized. It is anticipated over the next 12 months. The total number of heart failure patients is set to rise to more than 8 million over the course of the next 6 years as the baby boom generation continues to age and hospitals are under increasing pressure to improve outcomes and contain costs.

We see strong long term market for the use of our product within the heart failure segment. The current population of heart failure patients is $6 million in the United States 1 million of whom will be hospitalized. It is anticipated over the next 12 months. The total number of heart failure patients is set to rise to more than 8 million homes.

Michael Feldschuh: The current population of heart failure patients is 6 million in the United States, 1 million of whom will be hospitalized, it is anticipated, over the next 12 months. The total number of heart failure patients is set to rise to more than 8 million over the course of the next 6 years. As the baby boom generation continues to age and hospitals are under increasing pressure to improve outcomes and contain costs.

Of course for the next six years as the baby boom generation continues to engage and hospitals are under increasing pressure to improve outcomes and contain costs.

Speaker 2: Other commercial highlights include expanding utilization at one of the largest healthcare organizations in South Carolina and an industry partnership with MedAxium, something that I'll go into more in a moment.

Michael Feldschuh: Other commercial highlights include expanding utilization at one of the largest healthcare organizations in South Carolina and an industry partnership with MedAxiom, something that I'll go into more in a moment. Switching over to some of the clinical highlights. Blood volume analysis was selected by the National Institutes of Health as a key metric for their large COVID-19 long hauler study. In addition, new data from the Baptist Health Heart Institute has been presented at ISHLT, validating the benefits of BVA in late stage heart failure patients who use left ventricular assist devices. We've also seen data coming out from Duke Heart Center presented at the American College of Cardiology, revealing the unique accuracy and utility for blood volume analysis for improving worsening heart failure. We also anticipate new important research to be presented at the Heart Failure Society of America meeting in October.

But our commercial highlights include expanding utilization and one of the largest health care organizations in South Carolina and in industry partnership with Med axiom something that I'll go into more in a moment.

Switching over to some of the clinical highlights.

Speaker 2: Bloodmine analysis was selected by the National Institutes of Health as a key metric for their large COVID-19 long hauler study.

Lead volume analysis was selected by the National Institutes of Health has a key metrics for their large COVID-19 long haul or study.

Speaker 2: In addition, new data from the batches heart health system.

In addition, new data from the Baptist Heart Health system.

Speaker 2: has been presented at ISHLP, validating the benefits of BVA in late stage heart failure patients, who use left ventricular assist devices. We've also seen data coming out from DuCART, presented at the American College of Cardiology, with the unique accuracy and utility for fund-borne analysis from Proving Worsening Heart Failure. We also anticipate new important research to be presented at the Heart Failure Society meeting in October . Patrick, thank you.

Has been valid has been presented at high S. H L. T validating the benefits of BVA and late stage heart failure patients who use left ventricular assist devices. We've also seen data coming out from Duke Heart presented if American college of cardiology regarding the unique accuracy utility coupon behind analysis for improving worsening heart failure.

Michael Feldschuh: We've also seen data coming out from Duke Heart Center presented at the American College of Cardiology, revealing the unique accuracy and utility for blood volume analysis for improving worsening heart failure. We also anticipate new important research to be presented at the Heart Failure Society of America meeting in October.

We also anticipate new important research to be presented at the heart failure Society meeting in October .

Michael Feldschuh: Shifting gears for a moment to one of our key priorities. Our focus on our next generation of new products has been a key area of interest and energy for the company's management. We are pleased to announce that we successfully completed our U.S. Department of Defense contract to create a portable combat care device for both military and civilian use. In H1 of this year, we also successfully completed an NIH-funded I-Corps program for the commercialization of clinical decision support software. We were awarded a Phase 2 cooperative research agreement for our non-nuclear tracer, and we have begun the process of submitting data to the FDA for the clearance of our next generation blood volume analyzer. We anticipate a full submission to be completed in Q4 and approval in early 2023. I will go into more details about that in subsequent slides.

Shifting gears for a moment.

It's one of our key priorities.

Speaker 2: Our focus on our next generation of new products has been a key area of interest and energy for the company's management. We are pleased to announce that we successfully completed our Army Department of Defense contract to create a portable, combat-care device for both military and civilian units.

Our focus on our next generation of new products has been a key area of interest and energy for the company's management.

We're pleased to announce that we successfully completed our army department of defense contract to create a portable combat care device for both military and civilian use.

Speaker 2: In the first half of this year, we also successfully completed an NIH-funded I-Corps program for the commercialization of clinical decision support software. We were awarded a Phase II cooperative research agreement for our non-nuclear tracer, and we have begun the process of submitting data to the NIH-funded I-Corps program.

In the first half of this year. We also successfully completed an NIH funded I quit program with our commercialization of clinical decision support software.

Michael Feldschuh: We were awarded a Phase 2 cooperative research agreement for our non-nuclear tracer, and we have begun the process of submitting data to the FDA for the clearance of our next generation blood volume analyzer. We anticipate a full submission to be completed in Q4 and approval in early 2023. I will go into more details about that in subsequent slides.

We're awarded a phase two property research agreement for our non nuclear tracer and we have begun the process of submitting data to <unk>.

Speaker 2: FPA for the clearance of our next generation blood volume panel answer.

Ta for the clearance of our next generation blood volume analyzer.

Speaker 2: We anticipate a full submission to be completed in Q4 and approval in early of 2023. I will go into more details about that in subsequent slides. Our work for our next generation non-isotopic fluorescent marker is also ongoing, also supported by a research contract from the U.S. Department of Defense.

We anticipate a full submission to be completed in Q4.

And approval in early.

2023, I will go into more details about patents subsequent slides our work for our next generation non isotopic fluorescent marker is also ongoing also supported by a research contract from the U S Department of defense.

Michael Feldschuh: Our work for our next generation non-isotopic fluorescent marker is also ongoing, also supported by a research contract from the U.S. Department of Defense. Focusing on the arc of our development with the U.S. DOD. We've been the recipient of over $2 million in military contracts. The military, going back to 2018, recognized that Daxor, as the global leader in blood volume analysis technology, was the natural commercial counterpart to award a contract to generate a portable, ruggedized blood volume analyzer that would be suitable for both military and civilian use. This chart shows that we have successfully completed both phase 1 and phase 2 studies for the Army. We have completed phase 1 for the Air Force, and we are in the process of completing our phase 2 contract for the Air Force, which is our fluorescent marker.

Yeah.

Speaker 2: So focusing on the arc of our development with the USDOD, we've been the recipient of over $2 million in military contracts. The military going back to 2000 and 18 recognized that DAXOR has the global leader in blood volume analysis technology with the natural commercial counterpart to a more to contract to generate a portable, organized blood volume analyzer that would be suitable for both military and civilian.

So focusing on the arc of our development with the U S. T O D. We've been the recipient of over $2 million in military contracts the military going back to 2000, and <unk> recognized that tax or as the global leader in blood volume analysis technology was the natural commercial.

Counterpart tool water contract to generate a portable ruggedized blood volume analyzer that would be suitable for both military and civilian use.

Speaker 2: This chart shows that we have successfully completed both Phase 1 and Phase 2 studies for the Arnie. We have completed Phase 1 for the Air Force and we are in the process of completing our Phase 2 contract for the Air Force, which is our fluorescent marker. We've also entered into Phase 2 of our Crata Agreement for the Uniform Services University as well.

Michael Feldschuh: This chart shows that we have successfully completed both phase 1 and phase 2 studies for the Army. We have completed phase 1 for the Air Force, and we are in the process of completing our phase 2 contract for the Air Force, which is our fluorescent marker.

This chart shows that we have successfully completed both phase one and phase two studies, where the army. We have completed phase one work in airports and we are in the process of completing our phase two contract for the Air Force, which is our source of marker. We've also entered into phase two of our credo I agree.

Michael Feldschuh: We've also entered into phase two of our CRADA agreements with Uniformed Services University as well. We find that the enthusiasm amongst the counterparts at the military who are overseeing this project has been very healthy and enthusiastic. They've been gratified to see that we've been hitting our milestones in terms of creating a product that fits all of the specifications on time and on budget as well. Switching gears back over onto the commercialization side. Daxor has been selected as an industry partner for MedAxiom. For those of you not familiar with MedAxiom is the industry leader in consulting for cardiovascular care. It's a wholly owned subsidiary of the American College of Cardiology, which is the leading cardiology association in the world.

With a uniformed services University as well.

Speaker 2: We find that the enthusiasm amongst the counterparts at the military who have seen this project has been very healthy and enthusiastic and they've been graphite to see that we've been hitting our milestones in terms of creating a product that fits all of the specifications on time and on budget as well.

We find that the enthusiasm amongst the.

Counterparts at military school overseas.

Project has been very healthy and enthusiastic and they've been gratified to see that we've been hitting our milestones in terms of creating a product okay.

Let's call it the specifications on time and on budget as well.

Yeah.

Switching gears back over onto the commercialization side.

Speaker 2: Baxor has been selected as an industry partner for Medaxium. For those of you not familiar with Medaxium, Medaxium is the industry leader in consulting for cardiovascular care. It's a wholly owned subsidiary of the American College of Cardiology, which is the leading.

Michael Feldschuh: Daxor has been selected as an industry partner for MedAxiom. For those of you not familiar with MedAxiom is the industry leader in consulting for cardiovascular care. It's a wholly owned subsidiary of the American College of Cardiology, which is the leading cardiology association in the world.

Tax or has been selected as an industry partner for med axiom.

Have you not familiar with that axiom that axiom is the industry leader in consulting for cardiovascular care, it's a wholly owned.

Subsidiary of the American College of Cardiology, which is the leading.

Speaker 2: Cardiology Association in the world. They have a select group of industry partners and those partners are then connected to the hundreds of hospital systems and cardiology clinics and partners that MedAxium consults with. They engage MedAxium to recommend the latest of innovative technologies and best practices to improve outcomes within their system.

Cardiology Association in the World.

Michael Feldschuh: They have a select group of industry partners, and those partners are then connected to the hundreds of hospital systems, cardiology clinics, and partners that MedAxiom consults with. They engage MedAxiom to recommend the latest innovative technologies and best practices to improve outcomes within their systems. We're gratified to be working with them because their expertise, their enthusiasm for Daxor's product, and their desire to raise the profile of the company by featuring us at conferences, by creating webinars and other collateral to send out to all of their thousands of members, is very gratifying. We look forward to this partnership to significantly raise the profile of the company and to further drive sales. MedAxiom sees the Quadruple Aim as a key focus and that Daxor's blood volume technology fits every single part of the Quadruple Aim.

They have a select group of industry partners and those partners are then connected to the hundreds of hospital systems and cardiology.

Next on partners that med axiom consults with.

The engagement axiom to recommend the latest innovative technologies and best practices to improve outcomes within their systems.

Speaker 2: The gratified to be working with them because their expertise, their enthusiasm for DAXWARS product, and their desire to raise the profile of the company by featuring us at conferences, by creating webinars and other collateral to send out to all of their thousands of members is very gratifying. We look forward to this partnership to significantly raise the profile of the company and to further drive sales.

Michael Feldschuh: We're gratified to be working with them because their expertise, their enthusiasm for Daxor's product, and their desire to raise the profile of the company by featuring us at conferences, by creating webinars and other collateral to send out to all of their thousands of members, is very gratifying. We look forward to this partnership to significantly raise the profile of the company and to further drive sales. MedAxiom sees the Quadruple Aim as a key focus and that Daxor's blood volume technology fits every single part of the Quadruple Aim.

Modified to be working with them because their expertise their enthusiasm for <unk> products and their desire to raise the profile of the company by featuring our conferences are creating webinars and other collateral to send out to all their thousands of members is very gratifying. We look forward to this partnership.

To significantly raise the profile of the company and to further drive sales.

Speaker 2: Medacinem sees the quadruple aim as a key focus and that that's where blood volume technology fits every single part of the quadruple aim, improving outcomes, lowering costs, improving the clinical experience and the patient experience as well.

It asked him sees the quadruple aim as a key focus and attach was blood volume technology fits every single part of the quadruple aim improving outcomes lowering costs, improving the clinical experience and patient experience as well.

Michael Feldschuh: Improving outcomes, lowering costs, improving the clinical experience and the patient experience as well. Daxor continues to make progress in its ongoing clinical trials. We have received funding from not only the Department of Defense, but also the National Institutes of Health. We have two NIH multicenter prospective heart failure trials that are ongoing. We also have a prospective sepsis/COVID study which is ongoing. That was initiated by NYU in conjunction with Oregon Health & Science University and Wake Forest Baptist. Duke University Medical Center has also completed its phase I prospective study and we are awaiting them to publish results. The company has an active R&D and patent portfolio. We were awarded a patent in January of this year relating to our novel clinical decision support software.

Yeah.

Tax will continues to make progress in its ongoing clinical trials. We have received funding from not only the department of defense, but also the national institutes of health.

Speaker 2: We have two NIH multi-center prospective heart failure trials that are ongoing. We also have a prospective SEPCIS-FASH COVID study, which is ongoing that was initiated by NYU in conjunction with Oregon Health Sciences University and Wake Forest Baptist. And Duke University Medical Center has also completed its Phase I.

We have two NIH multicenter prospective heart failure trials that are ongoing.

Michael Feldschuh: We also have a prospective sepsis/COVID study which is ongoing. That was initiated by NYU in conjunction with Oregon Health & Science University and Wake Forest Baptist. Duke University Medical Center has also completed its phase I prospective study and we are awaiting them to publish results. The company has an active R&D and patent portfolio. We were awarded a patent in January of this year relating to our novel clinical decision support software.

We also have a perspective.

Sepsis Slash Covid study, which is ongoing and it wasn't that.

That was initiated by NYU.

Juncture at Oregon Health Sciences University can wake Forest Baptist and Duke University Medical Center has also completed its phase one.

Speaker 2: prospective study and we are awaiting them to publish results.

Prospective study and you're waiting.

<unk> results.

Okay.

Speaker 2: The company has impacted R&D and patent portfolio. We were awarded a patent in January of this year relating to our novel, Clinical Decision Support Software. This was the same patented technology that was the basis for the NIH awarding us our high-poor grant and support for future integration in towards LeadVionDiagnost.

The company has an active.

R&D and patent portfolio, we were awarded a patent in January of this year relating to our novel clinical decision support software. This was the same patented technology that was the basis for the NIH awarding NASCAR I core grant and support for future integration into our bloodline.

Michael Feldschuh: This was the same patented technology that was the basis for the NIH awarding us our I-Corps grant and support for future integration into our blood volume diagnostics. In addition, we anticipate that we have several patents that will be awarded sometime over the next 12 to 18 months. We have half a dozen pending, and we have a pipeline of more patents that we intend to file before the year is out. We have a very deep and growing moat of protection in terms of the IP, and we have a lot of work going towards our next generation systems as well. I would now like to switch over to Bob Michel, our CFO, to talk about some of the unaudited select financial outcomes that we have to date.

Six.

Speaker 2: In addition, we anticipate that we have.

In addition, we anticipate that we have.

Speaker 2: several patents that will be awarded sometime over the next 12 to 18 months. We have half a dozen pending and we have a pipeline of more patents that we intend to file before the year is out. So we have a very deep and growing mode of protection in terms of the IP and we have a lot of work going towards our next generation systems as well.

Several patents that will be awarded sometime over the next 12 to 18 months, we have half a dozen pending and we have a pipeline of more patents that we intend to file before the U S.

Michael Feldschuh: We have half a dozen pending, and we have a pipeline of more patents that we intend to file before the year is out. We have a very deep and growing moat of protection in terms of the IP, and we have a lot of work going towards our next generation systems as well. I would now like to switch over to Bob Michel, our CFO, to talk about some of the unaudited select financial outcomes that we have to date.

So we have a very deep.

Deep and growing moat.

Section in terms of the IP and we have a lot of work going towards our next generation systems as well.

Speaker 2: I would now like to switch over to Michelle, R-C-F-O, to talk about some of the unaudited select financial outcomes of the day.

I would now like to switch over to Michelle <unk>, our CFO to talk about some of the unaudited select select financial outcomes.

Hey.

Robert Michel: Thank you, Michael, and good afternoon, everyone. Here is the summary of our H1 2022 financial results. For the period as of 30 June 2022, Daxor's net assets increased 35.3% to $19,615,712, or $4.85 per share, as compared to $14,493,285, or $3.59 per share at 30 June 2021. Daxor's net assets decreased 7.3% to $19,615,712, or $4.85 per share, as compared to $21,152,719, or $5.24 per share at 31 December 2021.

Thank you Michael.

Speaker 3: And good afternoon, everyone. Here is the summary of our first half, 2022 financial results.

And good afternoon, everyone. Here is the summary of our first half 2022 financial results.

Speaker 3: The period as of June 30, 2022, Baxor's net assets increased 35.3% to 19 million, $615,712, or $4.85 per share, as compared to 14 million, $493,285, or $3.59 per share at June 30, 2021.

The period as of June 30th 2022 tax or is net in net assets increased 35, 3% to $19 million 650000, and $712 or $4 85 per share as compared to $14 million $493285.

Or $3 59 per share at June 30th 2021.

Speaker 3: DexAriznet assets decrease 7.3% to 19,615,712, or $4.85 per share as compared to 21,152,719, or $5.24 per share at December 31, 2021. However, the June 30, 2022 results do not reflect any change in the valuation of the operating division.

Or is that assets decreased seven 3% to $19 million $615712 or $4 85 per share as compared to $21 million $152719 or $5 24 per share at December .

<unk> 31st 2021.

Robert Michel: However, the 30 June 2022 results do not reflect any change in the valuation of the operating division. The valuation of the operating division remained at $16.5 million at 30 June 2022, the same value as 31 December 2021, as the valuation of the operating division is traditionally performed on an annual basis at the conclusion of the fiscal year. For the six-month period ended 30 June 2022, Daxor had net dividend income of $130,943 and net realized gains on investment activity of $1,370,610.

The June 30th 2022 results do not reflect any change in the valuation of the operating division.

Speaker 3: The valuation of the operating division remained at $16,500,000 at June 30, 2022. The same value as December 31, 2021, as the valuation of the operating division is traditionally performed on an annual basis at the conclusion of the fiscal year.

The valuation of the operating division remained at $16.500 million at June 30th 2022, the same value as December 31, 2021, as the valuation of the operating Division has traditionally performed on an annual basis at the conclusion of the fiscal year.

Speaker 3: For the six month period and to June 30th, 2022, Baxor had net dividend income of $130,943, and net realized gains on investment activity of $1,370,610.

For the six month period ended June 30th 2022 backs or had net dividend income of $130943 and net realized gains on investment activity of 1 million $370610.

Speaker 3: There was a net decrease in the unrealized appreciation on investments, options, and securities borrowed of $1,367,276, as we sold positions during the second quarter of 2022.

Robert Michel: There was a net decrease in the unrealized appreciation on investments, options, and securities borrowed of $1,367,276 as we sold positions during Q2 2022. The prior year's significant unrealized gains unwound into the realized gains for the period. Included in the net decrease in net assets resulting from operations of $1,812,497 is non-cash stock-based compensation expense of $275,490. In an effort to provide incentive to employees, officers, agents, and consultants to the company, we utilize stock-based incentive awards.

There was a net decrease in the unrealized depreciation on investments options and securities borrowed a 1 million $367276 as we sold positions during the second quarter of 2022.

Speaker 3: prior years significant unrealized gains unwound into the realized gains for the period.

Prior year's significant unrealized gains unwound into the realized gains for the period.

Speaker 3: included in the net decrease in net assets resulting from operations of $1,812,497 is non-cash stock based compensation expense of $275,492.

Included in the net decrease in net assets, resulting from operations of 1 million $812497 is noncash stock comp based compensation expense of $275490.

Speaker 3: In an effort to provide incentive to employees, officers, agents and consultants to the company, we utilize stock base incentive awards.

In an effort to provide incentive to employees officers agents and consultants to the company, we utilize stock based incentive awards.

Speaker 3: There was a net realized loss of $1,535,071 from the operating division relating to investments in research and development, sales and overhead. As the company continues to invest judiciously in research and development for our 2022-2023 product launch, ramping the commercial sales teams, as well as production facilities for our next generation blood volume analyzed.

Robert Michel: There was a net realized loss of $1,535,071 from the operating division relating to investments in research and development, sales, and overhead as the company continues to invest judiciously in research and development for our 2022, 2023 product launch, ramping the commercial sales teams, as well as production facilities for our next generation blood volume analyzers. That concludes my comments, and with that, I'd like to turn the call back over to Michael. Michael?

There was a net realized loss of 1 million $535071 from the operating division relating to investments in research and development sales and overhead as the company continues to invest judiciously in research and development for our 2022 2023 product launch.

Ramping the commercial sales teams as well as production facilities for our next generation blood volume analyzers.

Speaker 3: That concludes my comment. Comments and with that, I'd like to turn the call back over to Michael. Michael?

That concludes my comment comments and with that I'd like to turn the call back over to Michael Michael.

Michael Feldschuh: Thank you, Bob. Included in this slide are some statistics around our stock and stock performance. We have a float of approximately 4.04 million shares that is owned 68.02% by insiders. We are a company that is very heavily owned by insiders. We can see that, over a one-year period, the total return on our stock has been 50.8%. Our shares have risen from $9.33 to $14.07 as of yesterday's close. Also benchmarked against peers such as the Dow Jones U.S. Health Care Index, Daxor has substantially outperformed not only the broad market, but the relevant healthcare indices that it might be compared against.

Thank you Bob.

Speaker 2: Included in this slide are some statistics around our stock and stock performance.

Included in this slide are some statistics around our stock and stock performance. We have a float of approximately 4.4 million shares that is owned 68.0% to 2% by insiders. So we are a company that is very heavily owned.

Speaker 2: We have a float of approximately 4.04 million shares that is owned 68.02% by insiders, so we are a company that is very heavily owned by insiders. We can see that over a one-year period, the total return on our stock has been 50.8%. Our shares have risen from $9.33 to $14.07 as of yesterday's close.

By insiders.

Michael Feldschuh: We can see that, over a one-year period, the total return on our stock has been 50.8%. Our shares have risen from $9.33 to $14.07 as of yesterday's close. Also benchmarked against peers such as the Dow Jones U.S. Health Care Index, Daxor has substantially outperformed not only the broad market, but the relevant healthcare indices that it might be compared against.

You can see that over a one year period. The total return on our stock has been 58% our shares have risen from $9 33 to $14.07 as of yesterday's close also benchmarked against peers, such as the Dow Jones Healthcare index.

Speaker 2: Also, benchmarked against peers such as the Dow Jones Healthcare Index, Daxor has substantially helped perform not only the broad market, but the relevant healthcare indices that it might be compared again.

<unk> has substantially outperformed not only the broad market, but rather than health care indices that it might be compared against the stock has shown.

Michael Feldschuh: The stock has shown a low to zero beta, and some substantial alpha, and idiosyncratic return, which is commensurate with our development and progress really being independent of some of the larger stock market forces and reflects, we feel, a strong shareholder support for the trajectory of the company. This slide is a brief overview of our senior leadership, which remains unchanged. Daxor continues to be very focused on executing successfully, and we remain gratified that our sales, marketing, and business development team has been doing such a fine job. Here are key contacts that we have, investor relations, our auditors, corporate counsel, and transfer agents. With that being said, I thank you, and I would like to open up the floor for questions.

Speaker 2: The fact has shown a load to zero beta and some substantial alpha and idiosyncratic return, which is commenced with our development and progress really being independent of some of the larger stock market forces and reflects we feel strong shareholder support for the trajectory of the company.

Low to zero beta.

Some substantial alpha and.

Idiosyncratic return.

Which is commensurate with our our.

And progress really being independent of some of the larger stock market forces and reflects we feel a strong shareholder support for the trajectory of the company.

Yeah.

Speaker 2: This slide is a brief overview of our senior leadership, which remains unchanged. That's what continues to be very focused on executing successfully and we remain gratified that our sales and marketing and business development team has been doing such a fine job.

Michael Feldschuh: This slide is a brief overview of our senior leadership, which remains unchanged. Daxor continues to be very focused on executing successfully, and we remain gratified that our sales, marketing, and business development team has been doing such a fine job. Here are key contacts that we have, investor relations, our auditors, corporate counsel, and transfer agents. With that being said, I thank you, and I would like to open up the floor for questions.

This slide is a brief overview of our senior leadership, which remains unchanged.

That's what continues to be a very.

Focused on executing successfully and we remain gratified that our sales and marketing and business development team has been doing such a fine job.

Speaker 2: Here are key contacts that we have, investor relations, our auditors, corporate counsel, and transfer agents.

Here are key contacts that we have investor relations, our auditors corporate counsel and transfer agents.

Speaker 2: with that being said, I thank you and I would like to open up the floor for questions.

With that being said I think you and I would like to open up the floor for questions.

Speaker 1: Ladies and gentlemen, if you wish to ask a question on today's call, you will need to press star then the number one on your telephone.

Operator: Ladies and gentlemen, if you wish to ask a question on today's call, you will need to press star then the number one on your telephone. If your question has been answered and you wish to withdraw your request, you may do so by pressing star two. If you are using a speakerphone, please pick up your handset before entering your request and speaking on the call. One moment, please, for the first question. The first question is from Anthony Vendetti with Maxim Group. Please go ahead.

Ladies and gentlemen, if you wish to ask a question on today's call you will need to press Star then the number one on your telephone.

Speaker 1: If your question has been answered and you wish to withdraw your request, you may do so by pressing star 2.

If your question has been answered and you wish to withdraw your request you may do so by pressing star too.

Speaker 1: If you are using a speaker phone, please pick up your handset before entering your request and speaking on the call. One moment please for the first question.

If you are using a speakerphone. Please pick up your handset before entering your request and speaking on the call. One moment. Please for the first question.

Speaker 1: The first question is from Anthony Vendetti with Maxim Group. Please go ahead.

The first question is from Anthony Vendetti with Maxim Group. Please go ahead.

Speaker 2: Thank you. Thanks, Michael. I just wanted to talk a little bit about the new BVA, what makes it different from your original device. I know it's portable, maybe you can talk about the weight of it, how easy you can move it now from room to room, and just to confirm you're planning on submitting for a 5-10-K clearance.

Anthony Vendetti: Thank you. Thanks, Michael. I just wanted to talk a little bit about the new BVA, what makes it different from your original device. I know it's portable. Maybe you could talk about the weight of it, how easy you can move it now from room to room. Just to confirm, you're planning on submitting for a 510(k) clearance before the end of this year and expectation is sometime in the beginning of 2023 to receive clearance because you're probably using the original BVAs as a predicate device. Then I have a follow-up. Thank you.

Thank you.

Thanks, Michael.

I just wanted to talk a little bit about the the new BVA.

What makes it different from your.

Original device I know it is portable and maybe you can talk about.

The weight of it how easy you can move it now from room to room.

And just to confirm.

Are you planning on submitting.

For a five 10-K clearance.

Speaker 2: before the end of this year, an expectation is in the beginning, sometimes the beginning of 23 to receive clearance because you're probably using the original BBA as a predicate device. And then I have a follow-up. Thank you.

Before the end of this year and expectation is in the <unk>.

Beginning sometime in the beginning of 'twenty three Q2 receive received clearance because you're probably using the original BVA is a predicate device and then I have a follow up thank you.

Speaker 2: Great. Thank you. Yes, I think it's very important to speak to why the company feels that this product launch is one of the most important things that the company has undertaken in the past 20 years. Our new next generation systems are designed to be...

Michael Feldschuh: Great. Thank you. Yes. I think it's very important to speak to why the company feels that this product launch is one of the most important things that the company has undertaken in the past 20 years. Our new next generation systems are designed to be portable, rapid, and available at the point of care. Our current system involves the injection of a tracer at the bedside of the patient, the drawing of blood samples, and then those blood samples being taken somewhere else to a lab to be processed and then results to be put into the electronic medical record system for clinicians to use. That process can take anywhere from 60 to 90 minutes under the best circumstances.

Great. Thank you, yes, I think it's very important to speak to why the company feels that this product launches one of the most important things that the company has undertaken in the past 20 years.

Our new next generation systems are designed to be.

Portable rapid and available at the point of care. So our current system involves the injection of a tracer at the bedside of the patient the drawing of blood samples and then those blood samples being taken somewhere else to a lab to be processed and then results to be put in to the.

Speaker 2: portable, rapid, and available at the point of care. So our current system involves the injection of a tracer at the bedside of the patient, the drawing of blood samples, and then those blood samples being taken somewhere else to allow to be processed and then results to be put in to the electronic medical record system for clinicians to use. That process can take anywhere from 16 to 90 minutes under the best circumstance.

Michael Feldschuh: Our current system involves the injection of a tracer at the bedside of the patient, the drawing of blood samples, and then those blood samples being taken somewhere else to a lab to be processed and then results to be put into the electronic medical record system for clinicians to use. That process can take anywhere from 60 to 90 minutes under the best circumstances.

Chronic medical record system for clinicians to use that process can take anywhere from 60 to 90 minutes under the best circumstances, our new system. In contrast is designed to be deployed directly at the bedside and to allow for blood samples to be drawn directly from the patient and to provide a result within.

Speaker 2: Our new system in contrast is designed to be deployed directly at the bed.

Michael Feldschuh: Our new system, in contrast, is designed to be deployed directly at the bedside and to allow for blood samples to be drawn directly from the patient and to provide a result within 15 minutes. The new system is more than 3 times faster than our current unit. It's capable of giving the full results at the bedside without the need for lab services. It's also about the size of a tissue box while weighing about the same as a laptop computer. We anticipate that there will be substantial demand for our faster, easier, simpler version of our test from many different stakeholders within the hospital system.

Speaker 2: and to allow for blood samples to be drawn directly from the patient and to provide a result within 15 minutes.

15 minutes. So the new system is more than three times faster than our current unit is capable of giving the full results at the bedside without the need for lab services. It's also about the size of a tissue box, while weighing about the same as a laptop computer.

Speaker 2: The new system is more than three times faster than our current unit. It's capable of giving the full result at the bedside without the need for lab services. It's also about the size of a tissue box while weighing about the same as a laptop computer.

Speaker 2: So we anticipate that there will be substantial demand for our faster, easier, simpler version of our tests from many different stakeholders within the hospital system. Everybody from the current lab customers who will be able to recapture a substantial amount of their.

So we anticipate that there will be substantial demand for our faster easier simpler version of our test from many different stakeholders within the hospital system everybody from the current lab customers, who will be able to recapture a substantial amount of there.

Michael Feldschuh: Everybody from the current lab customers, who will be able to recapture a substantial amount of their state space in order to justify the new system, as well as our ability to see improvements from utilization in the field of care, because critical care typically want a turnaround time of 15 minutes or less to make fluid-based decisions. We think that opens up a whole new set of customers for us within the same hospital setting. The fact that the test can be done so much faster also means that the hospital will be spending less resources in terms of tech time to do the test. That means that they will be able to increase the total number of tests per day that their department is able to perform.

Speaker 2: space in order to justify

Okay.

Space in order to justify.

Speaker 2: of the new system, as well as our ability to

With the new system as well as our ability to.

Speaker 2: improvements from utilizing the field of critical care because critical care is typically on a turnaround time of 15 minutes or less to make food-based decisions. And so we think that that opens up a whole new set of customers for us within the same hospital setting.

See improvements from utilization in the field of critical care because critical care. There's typically a turnaround time of 15 minutes or less to make food based decisions and so we think that that opens up a whole new set of customers for us within the same hospital setting.

Michael Feldschuh: The fact that the test can be done so much faster also means that the hospital will be spending less resources in terms of tech time to do the test. That means that they will be able to increase the total number of tests per day that their department is able to perform.

Speaker 2: The fact that the test can be done so much faster also means that the hospital will be spending less resources in terms of tech time to do the test. That means that they will be able to increase the total number of tests per day that their department is able to perform. So we see this really as a revolution.

The test can be done so much faster also means that the hospital will be spending less resources in terms of tech time to do the test that means that they will be able to increase the total number of tests per day that their department is able to perform so.

Michael Feldschuh: We see this really as a revolutionary step in terms of speed, in terms of usability, in terms of workflow. We feel it will greatly speed the adoption of our systems. We also see that there's an opportunity that some hospitals might want to have multiple systems within the hospital setting. For example, we anticipate that a floor that is dealing with critical care patients might wanna keep one of these systems right on their floor, another one in the heart failure clinic, another device perhaps in the main ICU.

So we see this really as a revolutionary step in terms of speed in terms of usability.

Speaker 2: in terms of speed, in terms of usability, in terms of workflow. And so we feel that will greatly speed the adoption of our systems. And we also see that there's an opportunity that some hospitals might want to have multiple systems within the hospital setting. So for example, we anticipate that floor that is dealing with critical care patients might want to keep one of these systems right on their floor. Another one in the heart failure clinic, another device perhaps in the main...

In terms of a workflow and so we feel that will greatly speed up the adoption of our systems and we also see that there's an opportunity that some hospitals might want to have multiple systems within the hospital setting. So for example, we anticipate that a floor that is dealing with critical care patients might want to keep one of few systems right on there.

For another one in the heart failure clinic another device, perhaps in the main the main ICU. So we can see it workflow where several of these units are stationed around the points of care, where the patient to allow for rapid deployment at the test as opposed to having a single device in the central lab, which is much slower.

Speaker 2: the main ICU. So we can see a workflow where several of these units are stationed around the points of care where the patients are to allow for rapid deployment of the tests. I suppose adding a single device.

Michael Feldschuh: We can see a workflow where several of these units are stationed around the points of care where the patients are to allow for rapid deployment of the test, as opposed to having a single device in the central lab, which is much slower and is much more dependent upon other issues before the test can be performed. We see this next generation system as being incredibly important. Now, the second part of what we're building into our next generation is a non-isotopic fluorescent marker. That is a system that is under development also with the support of the United States Air Force. That we see opening up another additional area of care. That fluorescent marker would be suitable, we anticipate, for deployment even to areas such as clinics and potentially doctor's offices as well.

Speaker 2: in the central lab, which is much slower and is much more dependent upon other issues before the test can be performed. So we see this next generation system as being incredibly important. Now the second part of what we're building into our next generation.

And is much more dependent upon other issues before they the tests can be performed so we see this this next generation system has been incredibly important.

Michael Feldschuh: Now, the second part of what we're building into our next generation is a non-isotopic fluorescent marker. That is a system that is under development also with the support of the United States Air Force. That we see opening up another additional area of care. That fluorescent marker would be suitable, we anticipate, for deployment even to areas such as clinics and potentially doctor's offices as well.

Part of what we're building into our next generation is a non isotopic fluorescent marker.

Speaker 2: is a non isotopic fluorescent marker.

Speaker 2: That is a system that is under development, also with the support of the United States Air Force. That we see opening up.

That is a system that is under development also with the support of the United States Air Force that we see opening up another additional area of cure that.

Speaker 2: another additional area of care, that fluorescent marker would be suitable, we anticipate, for deployment even to areas such as clinics and potentially doctor's offices as well. So, our aim is to make blood volume analysis faster, easier.

That fluorescent marker would be suitable we anticipate toward deployment even to areas such as clinics and potentially doctors' offices as well. So our aim is to make blood volume analysis faster easier.

Michael Feldschuh: Our aim is to make blood volume analysis faster, easier, quicker, and available in all sorts of care areas to inform everything from hypertension management, heart failure, sepsis, syncope, and all the rest. These product launches and the support that we're getting from both the NIH and the DOD is really very powerful towards making that happen.

Speaker 2: quicker and available in all sorts of care areas to inform everything from high potential management, heart failure, sepsis, syncopy and all the rest. So these product launches and the support that we're getting from both the NIH and the DOD is really very powerful towards making that happen.

Thicker and available in all sorts of care areas to inform everything from hypertension management heart failure sepsis syncope and all the rest. So these product launches and the support that we're getting from both the NIH and the D. O D is really very powerful towards making that happen.

Anthony Vendetti: Yeah, no, that sounds like it's a significant leap forward, not just an incremental iteration. Just maybe in terms of that, you know, as customers understand there's, you know, a significantly improved device coming out, do you expect that to hold sales down in H2 of the year that we're in right now? Or, at least for the equipment that's out there, can you talk about, in general terms, the usage stats, 'cause there's a consumable piece to this. Have you seen a pickup, at least in the devices that are currently in the field, has there been an increased usage in H1 2022?

Speaker 4: Yeah, that sounds like it's a significant leap forward, not just...

Yes.

It sounds like it's significantly powered not not not just.

Speaker 4: an incremental iteration. Just maybe in terms of that, as customers understand, there's a significantly improved device coming out. Do you expect that to hold sales down in the back half of the year?

And incremental iteration.

Just maybe in terms of.

All of that.

Customers understand there's.

He can only improve device coming out do you expect that to hold sales down in the back half of the year.

Speaker 4: of the year that we're in right now, or at least for the equipment that's out there, can you talk about?

Of the year that we're in right now or at least the equipment. That's out there can you can you talk about.

Speaker 4: In general terms, the usage stats, because there's a consumable piece to this, have you seen a pickup, at least in the devices that are currently in the field, has there been an increased usage in the first half of 2022?

In general terms, the usage stats, because theres a consumable piece to this.

Have you seen a pick up at least in devices that are currently in the field.

Has there been an increased usage in the first half of 2022.

Michael Feldschuh: Yeah. That, that's really a two-part question. I'll answer the second part first, which is we have seen a growth in the utilization at existing accounts, and that's really been a function of our ramping up a clinical and sales team led by our Senior Vice President, Jean Oertel. She's been doing a really super job of engaging with the key opinion leaders at hospitals and managing and growing the sales and clinical support team to be very focused on supporting new users. We have been making investments in things such as grand rounds, a new electronic learning management system for remote training of our clinical teams at different customer sites, a new CRM system to be able to manage our sales team more effectively.

Speaker 5: That's really a two-part question. I'll answer the second part first, which is we have seen a growth in the utilization at existing accounts, and that's really been a function of our ramping up clinical and sales team led by our senior vice president, Jean Hortel. She's been doing a really super job of engaging with

Yeah. So that's really a two part question I'll answer the second part first which is we have seen a growth in the utilization at existing accounts and that's really been a function of our ramping up.

Nickel and sales team led by our senior Vice President General Tao She's been doing a really super job of engaging with the key opinion leaders at hospitals, and managing and growing the sales and clinical support teams to be very focused on supporting new users.

Speaker 2: The key opinion leaders at hospitals and managing and growing the sales and clinical support teams be very focused on supporting new users.

Speaker 2: We have been making investments in things such as Grand Rounds, a new electronic learning management system for remote training of our clinical teams at different customer sites, a new CRM system to be able to manage our sales team more effectively.

Michael Feldschuh: We have been making investments in things such as grand rounds, a new electronic learning management system for remote training of our clinical teams at different customer sites, a new CRM system to be able to manage our sales team more effectively.

We have been making investments in things such as Grand rounds, our new electronic learning management system for remote training of our clinical teams at different customer sites.

Our new CRM system to be able to manage our sales team more effectively.

Michael Feldschuh: Kathryn A. Kornafel, our VP of Marketing, has been very focused as well on growing that collateral, and she's been doing a terrific job of that. We're seeing sales at existing accounts growing, which is very nice because it also means that the new accounts that are coming online are also coming online at a higher utilization rate. That's what we're seeing from the existing side. Now, as far as the question about whether the impending new device is suppressing the sales or leasing of the current devices, it's very important to know that our sales model that we anticipate for our next generation devices will be substantially different than our current sales model.

Speaker 2: Kathy Cornafal, our VP of marketing, has been very focused as well on growing that collateral and she's been doing a terrific job of that. So we're seeing sales at existing accounts growing, which is very nice because it also means that the new accounts that are coming online are also coming online at a higher utilization.

Kathy Kornafel, our VP of marketing has been very focused as well on growing that collateral and she's been doing a terrific job of that so we're seeing sales at existing accounts growing.

Is very nice because it also means that the new accounts that are coming online are also coming online at a higher utilization rate. So that's that's what we're that's what we're seeing from from the existing side now as far as the.

Speaker 2: So that's what we're seeing from the existing side. Now, as far as the question about whether the...

Michael Feldschuh: Now, as far as the question about whether the impending new device is suppressing the sales or leasing of the current devices, it's very important to know that our sales model that we anticipate for our next generation devices will be substantially different than our current sales model.

The first.

A question about whether the.

Speaker 2: impending new devices suppressing the sales or leasing of the current devices. It's very important to know that our sales model

And pending new devices suppressing the sales or leasing of the current devices, it's very important to.

Know that our sales model.

Speaker 2: that we anticipate for our next generation devices will be substantially different than our current

We anticipate for next generation devices will be substantially different than our current.

Speaker 2: sales model. We anticipate moving towards a SaaS model for our equipment, meaning the software service model where we will be primarily leasing or renting our next-generation analyzers but not selling the capital equipment. We feel that that is going to allay customers' current fears. If they have existing devices, we will seek to rapidly

Sales model and we anticipate to moving towards a SaaS.

Michael Feldschuh: We anticipate to moving towards a SaaS model for our equipment, meaning the software service model where we will be primarily leasing or renting our next generation analyzers, but not selling the capital equipment. We feel that that is going to allay customers' current fears. If they have existing devices, we will seek to rapidly swap them out or trade them with some kind of credit to try to get everybody onto the new system. There's just so many advantages for every stakeholder to having it. Also moving towards a SaaS model will provide an additional recurring revenue stream of our devices. We've had some devices at hospitals for 10 years where they're still using the same device, and they've used it on thousands of patients.

The SaaS model for our equipment, meaning the software as a service model, where we will be primarily leasing or renting our next generation analyzers, but not selling the capital equipment. We feel that that is going to allay customers' current fears if they have existing devices, we will seek to rapidly swap them.

Speaker 2: swap them out, or trade them with some kind of credit to try to get everybody onto the new system. There's just so many advantages for every stakeholder to having it, but also moving towards a SaaS model will provide an additional recurring revenue stream of our devices. We've had some devices at hospitals for 10 years where they're still using the same device and they've used it on thousands of patients. And frankly, we haven't been getting anything like the kind of return on that capital equipment piece that we could if we were renting it on a monthly basis. There's a lot of advantages towards moving towards that model and that's what we anticipate doing. And that's how we're going to deal with this.

Mount or trade them with some kind of credit to try to get everybody onto the new system Theres. Just so many advantages for every stakeholder to having it but also moving towards a SaaS model will provide an additional recurring revenue stream of our devices. We've had some devices at hospitals for 10 years, where they've they're still using the same device and it.

Michael Feldschuh: There's just so many advantages for every stakeholder to having it. Also moving towards a SaaS model will provide an additional recurring revenue stream of our devices. We've had some devices at hospitals for 10 years where they're still using the same device, and they've used it on thousands of patients.

Is it on thousands of patients.

Michael Feldschuh: You know, frankly, we haven't been getting anything like the kind of return on that capital equipment piece that we could if we were renting it on a monthly basis. There's a lot of advantages towards moving towards that model, and that's what we anticipate doing, and that's how we're going to deal with this issue of suppression of new orders in H2, by reassuring everybody that they're going to be moved to the new systems as soon as they're available.

Frankly, we haven't been getting anything like the kind of return on that capital equipment piece that we that we could if we were renting it on a monthly basis theres a lot of advantages towards moving towards that model and that's what we anticipate doing and that's how we're going to deal with this issue.

Speaker 2: issue of suppression of new waters in the second half is by reassuring everybody that they're going to be moved to the new systems as soon as they're available.

Suppression of new orders in the second half is by reassuring everybody that theyre going to be moved to the new systems as soon as they are available.

Speaker 4: Okay, great. Do you have at this point, a pipeline of customers that have indicated interest or is it too early for that?

Anthony Vendetti: Okay, great. Do you have, at this point, a pipeline of customers that have indicated interest, or is it too early for that at this point?

Okay, Great and do you have at this point a pipeline of customers that have indicated interest or is it is it too early for that at this point.

Speaker 5: Well, we have to be very careful because FDA does not like for companies to market to customers on a prove device.

Michael Feldschuh: Well, we have to be very careful because FDA does not like for companies to market to customers unapproved devices. We've done focus group sessions and R&D in conjunction with KOLs, but at this point, until we have our clearance, we're really not allowed on a commercial side to be able to go out and start to get pre-orders lined up for the device. That being said, all of our focus group work and all of the research that we've done has shown substantial enthusiasm for the increased capabilities of the next generation systems. People are pretty excited about what it means to be able to go from 60 to 90 minutes to get one of these results to 15 minutes.

Well, we have to be very careful because FDA does not like for companies to market to customers unapproved devices. So we've done focus group sessions and R&D.

Speaker 2: So we've done focus group sessions and R&D in conjunction with KOLs, but at this point, until we have our clearance, we're really not allowed on a commercial side to be able to go out and start to get pre-orders lined up for the device. That being said, all of our focus group work and all of the research that we've done has shown substantial enthusiasm for the increased capabilities of the next generation systems. People are pretty excited.

In conjunction with Kols, but at this point until we have our clearance will really not allowed on a commercial side to be able to go out and start to get preorders wind up towards the device.

Michael Feldschuh: That being said, all of our focus group work and all of the research that we've done has shown substantial enthusiasm for the increased capabilities of the next generation systems. People are pretty excited about what it means to be able to go from 60 to 90 minutes to get one of these results to 15 minutes.

<unk> said all of our focus group work and all of the research that we've done has shown substantial enthusiasm for the increased capabilities over the next generation systems people are pretty excited.

Speaker 2: about what it means to be able to go from 60 to 90 minutes to get one of these results to 15 minutes. Everybody from the tech that would do the test to the people that wanna see these results faster, everybody's really excited to see that work flow happen.

About what it means to be able to go from 60 to 90 minutes to get one of these results to 15 minutes I everybody from the tech the where do the task to the people that want to see these results faster.

Michael Feldschuh: Everybody from the tech that would do the test to the people that wanna see these results faster, everybody's, you know, really excited to see that workflow happen.

Everybody is really excited to see that workflow happens.

Anthony Vendetti: Just two quick questions then I'll jump back in queue. The timing, I just wanna confirm, you expect to submit the clearance application by the end of this year, and then sometime by H1, you're hoping to have clearance. That's the first question. Then the second is, in terms of the new system, is it more user-friendly? Is the GUI interface easier? And if so, how quickly can a healthcare professional learn how to use the new BVA?

So just two quick questions and then I'll jump back in queue.

Speaker 4: So just two quick questions and I'll jump back into you. So the

So the.

Speaker 4: timing, I just want to confirm you expect to submit the clearance application by the end of this year and then sometime by the first half you're hoping to have clearance. That's the first question and then the second is in terms of the new system, is it more user friendly, is the GUI interface easier and if so, how quickly can help your professional learn how to use the new BVF.

Timing I just want to confirm you expect to submit the <unk>.

Clearance application by the end of this year and then sometime by the first half Youre, hoping to have clearance. That's the first question and then the second is.

In terms of the new system is it is it more user friendly as the Gui interface easier.

And if so how quickly can a health care professional learn how to use the new BD yet.

Speaker 5: Great questions. So just to be clear, actually, we've already begun submitting data to the FDA for our 510K approval.

Michael Feldschuh: Great questions. Just to be clear, actually, we've already begun submitting data to the FDA for our 510(k) approval. We've already collected and been in communication with FDA, and we anticipate having a preliminary meeting with them in early October. That's been confirmed. Following that meeting and some questions that we wanted answered, we anticipate submitting our 510(k) package within about a month after that meeting. We anticipate sometime in the middle of Q4 to have it, and that's then subject to usually the 60- to 90-day review timeframe. Importantly, the predicate device for the 510(k) process is our own current FDA-cleared device. One of the exciting things is that we have successfully completed the Army contract.

Great questions. So just to be clear actually we've already begun submitting data to the FDA for our five 10-K approval.

Speaker 5: We've already collected and been in communication with FDA and we anticipate having a preliminary meeting with them in early October that's been confirmed.

We've already collected and been in communication with FDA.

We anticipate having a preliminary meeting with them in early October .

That's been confirmed so following that meeting.

Speaker 5: So following that meeting and some questions that we wanted answers, we anticipate submitting our 510K package within about a month after that meeting. So we anticipate sometime in the middle of Q4 to have it and that's...

Some questions that we wanted answered.

It's a paid submitting our 500 10-K.

Package within about a month after that meeting so we anticipate sometime in the middle of Q4, two habit and that's then subject to usually the 60 to 90 day review timeframe.

Michael Feldschuh: We anticipate sometime in the middle of Q4 to have it, and that's then subject to usually the 60- to 90-day review timeframe. Importantly, the predicate device for the 510(k) process is our own current FDA-cleared device. One of the exciting things is that we have successfully completed the Army contract.

Speaker 2: then subject to usually the 60 to 90 day review time frame.

Accordingly.

Speaker 2: The predicate device for the 510K process is our own current FDA-Clear device.

The predicate device for the 500 10-K process is our own current FDA cleared device. So one of the exciting things is that we have successfully completed the army contract that means that we have are working prototypes. We have done validation studies and presented data to the U S. Army that we have been able to successfully replicate all.

Speaker 2: So one of the exciting things is that we have successfully completed the Army contract. That means that we have our working prototypes, we have done validation studies and presented data to the U.S. Army that we have been able to successfully replicate all the speed and accuracy of our current system in a footprint that is about one tenth the size and perhaps one fifth of the weight. So we have a tremendous

Michael Feldschuh: That means that we have our working prototypes. We have done validation studies and presented data to the U.S. Army that we have been able to successfully replicate all the speed and accuracy of our current system in a footprint that is about one-tenth the size and perhaps one-fiftieth of the weight. We have a tremendous amount of confidence in the new technology that we've developed, that it fulfills the aim of what the 510(k) process is meant to have, which is to show equivalency to an existing cleared device. As far as usability goes, the new system is better and easier in every single way. You know, it benefits from the latest touchscreen technology. You're, you know, sort of thinking about a device with a 6-by-8-inch touchscreen tablet.

The speed and accuracy of our current system and a footprint that is about 110th the size and perhaps 150 F of the week.

Michael Feldschuh: We have a tremendous amount of confidence in the new technology that we've developed, that it fulfills the aim of what the 510(k) process is meant to have, which is to show equivalency to an existing cleared device. As far as usability goes, the new system is better and easier in every single way. You know, it benefits from the latest touchscreen technology. You're, you know, sort of thinking about a device with a 6-by-8-inch touchscreen tablet.

So we have a tremendous.

Speaker 2: amount of confidence in the new technology that we've developed that it fulfills the aim of what the 510K process is meant to have, which is to show equivalency to an existing clear device. As far as usability goes.

Amount of confidence in the new technology that we've developed that it fulfills the game of what the 500 10-K process.

<unk> is meant to have which is to show equivalency 20 existing cleared device as far as the usability goes.

Speaker 5: The new system is better and easier in every single way. You know, it benefits from the latest touch screen technology. You know, you're sort of thinking about a device with a 6 by 8 inch touch screen tablet. We've done a lot of work and we've incorporated all of the learnings from the many thousands of tests that have been performed already with our current system to think about how to do this.

The new system is better and easier in every single way.

It benefits from the latest touch screen technology.

Sort of thinking about a device with a six by eight inch touch screen tablet.

Michael Feldschuh: We've done a lot of work, and we've incorporated all of the learnings from the many thousands of tests that have been performed already with our current system to think about how to do this. We wanna make a system that is intuitive and easy to follow. I would say that if you can check your own luggage in to get onto a commercial airplane flight, you should be able to work our analyzer.

We've done a lot of work and we've incorporated all of the learnings from the many thousands of tests that have been performed already with our current system to think about how to do this we want to make a system that is as intuitive and easy to follow I would say that if you can check your own luggage and to get onto our commercial airplanes fly.

Speaker 2: We want to make a system that is intuitive and easy to follow. I would say that if you can check your own luggage in to get onto a commercial airplane flight, you should be able to work our own.

You should be able to work our analyzer.

Speaker 4: Great, that's a lot of helpful color. Thanks so much. I'll jump back in the heat.

Anthony Vendetti: Great. That's a lot of helpful color. Thanks so much. I'll jump back in the queue.

Great.

A lot of helpful color. Thanks, so much I'll jump back in the queue.

Michael Feldschuh: Thank you.

Take care.

Operator: Again, if you have a question, please press Star, then one. The next question is from Ed Wu with Ascendiant Capital. Please go ahead.

Speaker 1: Again, if you have a question, please press star then 1.

Again, if you have a question. Please press Star then one.

Speaker 1: The next question is from Ed Wu with Accention Capital. Please go ahead.

The next question is from Ed Woo with <unk> capital. Please go ahead.

Speaker 2: Yeah, thank you for taking my question. My question is, as we have some of these McFly challenges, does that affect your sales cycle and business development in terms of getting your device?

Ed Wu: Yeah. Thank you for taking my question. My question is, as we have some of these, macro challenges, does that affect your sales cycle and business development in terms of getting, you know, your device placed with new customers?

Ed Woo: Yeah. Thank you for taking my question. My question is, as we have some of these, macro challenges, does that affect your sales cycle and business development in terms of getting, you know, your device placed with new customers?

Yeah. Thank you for taking my question. My question is as we have some of these macro challenges does that affect your sales cycle and business development in terms of getting your device place with new customers.

Speaker 2: I'm sorry, I don't think I completely understand the question. Are you saying does the new device hurt our current efforts to place existing devices?

Michael Feldschuh: I'm sorry, Ed. I don't think I completely understand the question. Are you saying does the new device hurt our current efforts to place existing devices?

I'm, sorry, I don't think I completely understand the question are you, saying are you are you think does the new device hurt our current efforts to place our existing devices.

Speaker 1: uh... now i actually meant you know people are a little concerned about the economy growth is flowing to you oh is there any time for a good slowdown capital you know any type of investment on new medical equipment

Ed Wu: No. I actually meant, you know, as people are a little bit concerned about the economy, growth is slowing, GDP-

Oh, no I actually meant people are a little bit concerned about the economy growth.

Ed Woo: No. I actually meant, you know, as people are a little bit concerned about the economy, growth is slowing, GDP-

Growth is slowing GDP.

Michael Feldschuh: Oh.

Ed Wu: is slowing.

Ed Woo: is slowing.

Michael Feldschuh: Oh.

Ed Wu: Is there any concerns that people are gonna slow down capital, you know, on any type of investment on new medical equipment?

Ed Woo: Is there any concerns that people are gonna slow down capital, you know, on any type of investment on new medical equipment?

So is there any concerns that people are going to slow down capital.

Any type of investment on new medical equipment.

Michael Feldschuh: Yes. Thank you. I apologize. I didn't understand the question at first. Here's what we've been seeing, which is really quite important. First of all, the company was able to push through a 9.1% increase in Volumex this year, and we really saw no pushback or drop in utilization at all from customers. One of the exciting things about this kind of economy is that if you have a very strong value proposition, people are actually more eager, not less eager, to hear about your pitch. In a similar way to the idea that, I don't know, Costco or Dollar General stores benefit from this kind of inflationary, cost-sensitive environment as people are more value-focused, in a similar way, what we're seeing is that hospital systems are incredibly sensitive right now to health economics.

Speaker 2: Yeah, thank you. I apologize. I didn't understand the question at first.

Yeah. Thank you I apologize I didn't understand the question at first so here's what we've been seeing which is really quite important.

Speaker 5: Here's what we've been seeing, which is really quite important. First of all, the company was able to push through a 9.1% increase in Volume X this year, and we really saw no pushback or drop in utilization at all from customers. One of the exciting things about this kind of economy is that

First of all the company was able to push through a nine 1% increase in volume ex this year and we really saw no pushback or drop in utilization at all from customers. One of the exciting things about this kind of economy is that if you have a very strong value proposition people are actually more eager not less eager.

Speaker 5: If you have a very strong value proposition, people are actually more eager, not less eager to hear about your pitch. So in a similar way,

Great to hear about your pitch so in a similar way to the idea that I don't know Costco or dollar general stores benefit from this kind of inflationary cost sensitive environment as people are more value focused in a similar way. What we're seeing is that hospital systems are incredibly sensitive right now to health economics.

Michael Feldschuh: In a similar way to the idea that, I don't know, Costco or Dollar General stores benefit from this kind of inflationary, cost-sensitive environment as people are more value-focused, in a similar way, what we're seeing is that hospital systems are incredibly sensitive right now to health economics.

Speaker 2: the idea that I don't know Costco or Dollar General stores benefit from this kind of inflationary cost-intensive environment as people are more value-focused. In a similar way, what we're seeing is that hospital systems are incredibly sensitive right now to health economics. So they're challenging us when we go to them with our systems and they say, show us how utilizing your system on an outpatient basis with the reimbursement that we're going to Gonna access you.

Michael Feldschuh: They're challenging us when we go to them with our systems, and they say, "Show us how utilizing your system on an outpatient basis with the reimbursement that we're going to get makes great financial sense." We have a super strong story around outpatient reimbursement for our test. It's really, really been refined, and it's in a very strong place. On the inpatient side, one of the really important things to see has been how blood volume analysis shortens the total length of stay for patients within the hospital system. If you shorten the length of stay, that means that the hospital spends less resources. They still get a block payment under what's called the DRG system. If you can show that you shorten the total length of stay and the total resources used, then hospitals are actually very keenly interested in that.

So they are challenging us when we go to them with our systems and they say show us how utilizing your system on an outpatient basis with the reimbursement that we're going to get it makes great financial sense, and we haven't a super strong story around outpatient reimbursement for our test, it's really really been refined.

Speaker 5: great financial sense. And we have a super strong story around outpatient reimbursement for our test. It's really, really been refined and it's in a very strong place on the inpatient side. One of the really important things to see has been how blood volume analysis shortens the total length of day for patients within the hospital.

And it's in a very strong place on the inpatient side one of the really important things to see.

Michael Feldschuh: On the inpatient side, one of the really important things to see has been how blood volume analysis shortens the total length of stay for patients within the hospital system. If you shorten the length of stay, that means that the hospital spends less resources. They still get a block payment under what's called the DRG system. If you can show that you shorten the total length of stay and the total resources used, then hospitals are actually very keenly interested in that.

Has been how blood volume analysis shorten the total length of stay for patients within the hospital system.

Speaker 5: And if you shorten the length of stay, that means that the hospital spends less resources, they still get a block payment under what's called the DRG system. But if you can show that you shorten the total length of day and the total resources used, then hospitals are actually very keenly interested in that. So our partnership with MetAxium is a great platform from which

And if you shorten the length of stay that means at the hospital spends less resources, they still get a block of payment under what's called the DRG system, but if you can show that you shorten the total length of stay in the total resources used in hospitals are actually very keenly interested in that so our partnership with med axiom is a great platform from.

Michael Feldschuh: Our partnership with MedAxiom is a great platform from which for us to be presented to hospital systems as a cost savings and an economic improvement, both in terms of workflow and in terms of expenditure. There's a substitution effect with our tests. For example, if a hospital was going to spend $1,100 or $1,200 or $1,300 to do a right heart cath on a patient, which is very invasive by the way, running a blood volume test could be done at one third the cost and one third the time. That's with our current system, by the way. With our new system, you know, it would be done in, you know, one ninth the time. You know, even with our current system, it presents substantial improvements versus some of the other metrics that they're using.

Which.

Speaker 5: For us to be presented to hospital systems has a cost savings and an economic improvement both in terms of workflow and in terms of expenditure. There's a substitution effect with our test. So for example, if a hospital was going to spend 11 or 12 or $1,300 to do a right heart test on a patient, which is very invasive by the way, learning a blood volume test could be done at one-third the cost and one-third the time. That's with our car.

For for Us to be presented to hospital systems has a cost savings and an economic improvement both in terms of workflow and in terms of expenditure. There is a substitution effect with our tests. So for example, if a hospital was going to spend 11, or 12 or $1300 to do a right heart cath on a patient which is very.

Invasive by the way.

Running a blood volume test could be done at one third the cost and one third of the time, that's with our current system by the way with our new system.

Michael Feldschuh: That's with our current system, by the way. With our new system, you know, it would be done in, you know, one ninth the time. You know, even with our current system, it presents substantial improvements versus some of the other metrics that they're using.

Speaker 2: with our new system, it would be done in one night at the time. But even with our current system, it presents substantial improvements versus some of the other metrics that they're using. So we've been very keenly focused on creating value propositions to all of the different stakeholders in these hospital systems in order to gain adoption. The crucial focus of the company is to get delivery analysis into the central care path.

You know it would be done in one length of time, but.

Even with our current system it presents substantial improvements.

Some of the other metrics that they're using so we've been very keenly focused on creating value proposition to all of the different stakeholders. In these hospital systems in order to gain adoption.

Michael Feldschuh: We've been very keenly focused on creating value propositions to all of the different stakeholders in these hospital systems in order to gain adoption. The crucial focus of the company is to get blood volume analysis into the central care pathway for all of these patients. In order to do that, we have to be sensitive to the economic environment, as you rightly point out, and also sensitive to the workflow and the clinical and quality objectives of our hospital customers.

The crucial focus of the company.

Get blood volume analysis into the central care pathway for all of these patients and in order to do that we have to be sensitive to the economic environment. As you rightly pointed out and also sensitive to the workflow in the clinical and quality objectives of our hospital customers.

Speaker 2: for all of these patients. And in order to do that, we have to be sensitive to the economic environment as you rightly point out, and also sensitive to the workflow and the clinical and quality objectives of our hospital customer.

Speaker 1: Great, then one last question is, have you had any issues with such pie chain in terms of getting parts as well as any inflation cost issue?

Ed Wu: Great. One last question is, have you had any issues with supply chain, in terms of getting parts, as well as any inflation cost issues?

Ed Woo: Great. One last question is, have you had any issues with supply chain, in terms of getting parts, as well as any inflation cost issues?

Great and then one last question is have you had any issues with the supply chain in terms of getting parts.

As well as any inflation cost issues.

Speaker 5: Fortunately, as the main manufacturer and distribute all of our products from our own US-based Oak Ridge Tennessee facility, we've been lucky that we haven't had any chip shortages or component problems right now. We've been able to ride the difficulty there. I will say though that we, like every other company, have been buffeted by inflationary courses related to staffing costs.

Michael Feldschuh: Fortunately, we manufacture and distribute all of our products from our own US-based Oak Ridge, Tennessee, facility. We've been lucky that we haven't had any chip shortages or component problems right now. We've been able to ride the difficulty there. I will say, though, that we, like every other company, have been buffeted by inflationary forces related to staffing costs. The cost of our technical teams has risen. You know, our software developers are, you know, now in a global marketplace for that kind of talent, for example. You know, we've had to, you know, raise salaries and benefits to be competitive with the general inflationary environment.

Fortunately, we manufacture and distribute all of our products from our own U S based Oakridge, Tennessee facility.

So we've been lucky that we haven't had any chip shortages or component problems right now.

We've been.

Able to ride the guide the difficulty there I will say, though that we like every other company have been buffeted by inflationary forces related to.

Staffing costs.

Speaker 2: So the cost of our technical teams has risen. You know, our software developers are, you know, are now in a global marketplace for that kind of talent, for example. So, you know, we've had to, you know, raise salaries and benefits to be competitive with the general inflationary environment. But as far as supply chain goes, we've been fortunate to avoid any real significant problems there.

So.

Michael Feldschuh: The cost of our technical teams has risen. You know, our software developers are, you know, now in a global marketplace for that kind of talent, for example. You know, we've had to, you know, raise salaries and benefits to be competitive with the general inflationary environment.

The cost of our technical teams has risen.

Our software developers R. R.

Uh huh.

Are you now in a global marketplace for that kind of talent for example.

So we've had to.

Base salaries and benefits to be competitive with the general inflationary environment, but as far as supply chain goes.

Michael Feldschuh: As far as supply chain goes, we've been fortunate to avoid any real significant problems there.

We've been fortunate to avoid any any real significant problems there.

Okay.

Ed Wu: Great. Well, thank you, and I wish you guys good luck. Thank you.

Ed Woo: Great. Well, thank you, and I wish you guys good luck. Thank you.

Great well, thank you and I wish you guys. Good luck. Thank you.

Michael Feldschuh: Thank you, sir.

Speaker 2: Thank you, sir.

Thank you Sir.

Operator: The next question is from Michael Samuels with Berthel Fisher. Please go ahead.

Speaker 2: But next question is from Michael Samuels with Berthol Fischer. Please go ahead.

The next question is from Michael samples with Berthold Fischer. Please go ahead.

Speaker 3: Hey, Mike, how you doing? Great presentation. Just had two quick questions. Is there a way you can give us the, I know you said we increased 12 machines. Is there a way we can get the actual number of machines that we have out present? And also the kit sales, approximately how many kits do we sell? That was question one and the second question is,

Michael Samuels: Hey, Mike, how you doing? Great presentation. Just had two quick questions. Is there a way you can give us. I know you said we increased 12 machines. Is there a way we can get the actual number of machines that we have out presently? And also the kit sales, approximately how many kits do we sell? That was question one. And the second question is, do we have any international sales right now? And do you think once we get the new machine, that'll be the catalyst for it?

Hey, Mike how are you doing a great presentation. Just had two quick questions is there a way you can give us. The I know you said, we increased 12 machines is there a way we can get the actual number of machines that we have at present and also the kit sales approximately how many kids do we sell that was question one and the second question is.

Speaker 3: Do we have any international sales right now? And do you think once we get the new machine, that'll be the catalyst?

Do we have any international sales right now and do you think once we get the new machine that'll be the catalyst for it.

Speaker 5: Great, thank you. I'll start with the second part first. So, one of the key things that the company announced last year was that we achieved ISO 13485 certification.

Michael Feldschuh: Great. Thank you. I'll start with the second part first. One of the key things that the company announced last year was that we achieved ISO 13485 certification. That is an international standard of manufacturing, and it's something that is a certification that is required for things like, for example, a CE mark. That's the clearance that allows you to sell devices in Europe or Canada. It's very important to harmonize your regulatory strategy across the different markets. The company historically has really been focused on the United States, but we have been aligning the manufacturing and the strategy of the company to allow us to have a global footprint for our products going forward.

Great. Thank you I'll start with the second part first.

One of the key things that the company announced.

Last year was that we achieved ISO 13, 485 certification that is an international standard of manufacturing and it's something that is a certification that is required for things like for example, a CE mark.

Speaker 5: That is an international standard of manufacturing, and it's something that is a certification that is required for things like, for example, a seat mark. That's the clearance that allows you to sell devices in your or Canada. So it's very important to harmonize your regulatory strategy across the different markets.

The clearance that allows you to sell devices in Europe or Canada.

So.

Michael Feldschuh: It's very important to harmonize your regulatory strategy across the different markets. The company historically has really been focused on the United States, but we have been aligning the manufacturing and the strategy of the company to allow us to have a global footprint for our products going forward.

It's very important.

To harmonize your regulatory strategy across the different markets.

Speaker 5: The company historically has really been focused on the United States, but we have been aligning the manufacturing and

The company historically has really been focused on the United States.

But we have been aligning the the manufacturing and the strategy of the company to allow us towards to have a global footprint for our products going forward.

Speaker 5: the strategy of the company to allow us to have a global footprint for our products going forward. Right now we're really focused on getting the US going and making sure that we have every single line up and filing there because there's such a massive market potential here in the US. But we're not leaving out.

Michael Feldschuh: Right now we're really focused on getting the US going, and making sure that we have everything lined up, and filing there because there's such a massive market potential here in the US. We're not leaving out Europe or Canada, or the Commonwealth in general. There's a lot of interest overseas in our product. We get researchers often reaching out when they see our data published in scientific journals, asking how they too can participate in those types of studies. It is going to be a priority for the company as soon as we get our regulatory approvals here in the United States to pivot and to see that we get global approvals for our next generation product. I don't anticipate that for our current generation product.

Right now, we're really focused on getting the U S going.

And making sure that we have everything lined up and filing there because there is such a massive market potential here in the U S, but we're not leaving out Europe .

Speaker 5: Europe or Canada or the Commonwealth in general, there's a lot of interest overseas in our product. We get researchers.

Europe or Canada.

Commonwealth in general, there's there's a lot of interest overseas and our product we got invest when we get our researchers.

Speaker 5: often reaching out when they see our data published in scientific journals, asking how they too can participate in those types of studies. So it is going to be a priority for the company as soon as we get our regulatory approvals here in the United States to pivot to see that we get global approvals for our next generation product. I don't anticipate that for our current generation product, frankly. It's not really worth it. But for our next generation products, absolutely.

Often reaching out when they see our data published in scientific journals, asking how they too can participate in those types of studies. So it is going to be a priority for the company as soon as we get our regulatory approvals here in the United States to pivot.

Michael Feldschuh: It is going to be a priority for the company as soon as we get our regulatory approvals here in the United States to pivot and to see that we get global approvals for our next generation product. I don't anticipate that for our current generation product.

To see that we get global approvals for our next generation product I don't anticipate that for our current generation product frankly, it's not really worth it but for our next generation products absolutely.

Michael Feldschuh: Frankly, it's not really worth it. For our next generation products, absolutely. Now, going towards the first part of your question. We've announced in the past a mixture of both sales and leases. And some of our customers actually use what we call reference lab services. That means that they inject the patients and then send the samples to our central lab to be processed through FedEx. That's a 24-hour turnaround time as opposed to the 60 to 90 minutes that they would get in the hospital, or potentially the 15 minutes they get if they had a next generation device at the bedside. We've announced 12 of those new accounts this year. I believe in our last letter, we pointed out 11.

Speaker 5: Now going towards the first part of your question, we've announced in the past a mixture of both sales and releases.

Now going towards the first part of your question.

We've announced in the past a mixture of both sales and leases.

Speaker 5: We've had some of our customers actually use what we call reference lab services. That means that they Inject the patients and then send the samples to our central lab to be processed through FedEx That's a 24-hour turnaround time as opposed to the 60 to 90 minutes if they would get in the hospital Or the potentially the 15 minutes that I say how to next generation device to the bedside So we've announced 12 of those new accounts is here

We've in some of our customers actually use what we call a reference lab services that means that they inject.

Inject a patient and then send the samples to our central lab to be processed through Fedex. That's a 24 hour turnaround time as opposed to the 60 to 90 minutes that they would get in the hospital, where the potentially the 15 minutes.

Michael Feldschuh: That's a 24-hour turnaround time as opposed to the 60 to 90 minutes that they would get in the hospital, or potentially the 15 minutes they get if they had a next generation device at the bedside. We've announced 12 of those new accounts this year. I believe in our last letter, we pointed out 11.

I say had a next generation device with the bedside.

So we've announced 12 of those new accounts. This here I believe in our last quarter, we pointed out 11, and we've said in the past that we've had over 65 accounts at different hospitals across the United States. So I don't have the data right now we haven't released it in the past a detailed list of all of our accounts are.

Speaker 5: I believe in our last letter we pointed out 11. And we said in the past that we've had over 65 accounts at different hospitals across the United States. So I don't have the data right now. We haven't released it in the past, a detail list of where all of our accounts are. But I guess people kind of a sense of where things are going there as far as those sales goes while we haven't been.

Michael Feldschuh: We've said in the past that we've had over 65 accounts at different hospitals across the United States. I don't have the data right now. We haven't released it in the past, a detailed list of where all of our accounts are, but that gives people kind of a sense of where things are going there. As far as dose sales go as well, we haven't been computing those. We do sell doses for a variety of both clinical use, as well as commercial use, and research as well. We do periodically update the total number of tests that have been done. At this point, I know that it's over 60,000, and obviously we're adding several thousand per year.

That gives people kind of a sense of where things are going there as far as dose sales go is while we haven't in computing those we do cell doses for a variety of both clinical use as.

Speaker 5: Computing those we do sell doses for a variety of both clinical use

Michael Feldschuh: We do sell doses for a variety of both clinical use, as well as commercial use, and research as well. We do periodically update the total number of tests that have been done. At this point, I know that it's over 60,000, and obviously we're adding several thousand per year.

Speaker 5: as well as commercial use and research as well. So we do periodically update the total number of tests that have been done. At this point, I know that it's over 60,000 and obviously we're adding several thousand per year. And so we're going to be growing that number, I think, quite substantial.

As well as commercial use and research as well.

So we're we're we do periodically update the total number of tests that have been done.

At this point I know that it's it's over 60000, and obviously, where we're adding several thousand per year.

Michael Feldschuh: We're gonna be growing that number, I think, quite substantially. I don't have exact numbers for the shareholders. I know that people are eager to get a better sense of the cadence of the business. We're trying to give a look into that as well. It's important to also understand that the revenue numbers and the sales numbers are really a mixture of several different things that are happening for the company. I'm talking at the operating company level, not at the consolidated parent level of the company.

And so where we're going to be growing that number I think quite substantially. So I don't have exact numbers for the shareholders. I know that people are eager to get a better sense of the cadence of the business.

Speaker 5: So I don't have exact numbers for the shareholders. I know that people are eager to get a better sense of the cadence of the business, and we're trying to give a look into that as well. It's important to also understand that the revenue numbers and the sales numbers...

We're trying to give a look into that as well.

To also understand that the revenue numbers in the sales numbers.

Speaker 5: a really a mixture of several different things that are happening for the company. And I'm talking at the operating company level, not at the consolidated parent level company. We do see a substantial...

Really a mixture of several different things that are happening for the company and I'm talking at the at the operating company level not at the consolidated.

On the parent level the company, we do see a substantial.

Michael Feldschuh: We do see a substantial diversity of revenue sources, meaning Volumex sales, capital sales, capital leases, research agreements, grant money, Department of Defense contracts, and various maintenance agreements for our equipment with our current existing hospital accounts. We have a lot of different sources of revenue, and all of that is supporting the ongoing development of the business. In addition, at the parent company level, we use our current investment portfolio with dividends and capital appreciation of the underlying securities also to fund the company's growth. You know, the company has a very tight cap table. We have no warrants outstanding, and we've been very careful around the share float as well because we run the company to maximize shareholder value.

Speaker 5: diversity of revenue sources, meaning volumex sales, capital sales, capital leases, research agreements, grant money, department of defense contract.

Diversity of revenue sources, meaning volume ex sales capital sales capital leases.

Research agreements.

Grant money Defense Department of defense contracts.

Speaker 5: and various maintenance agreements for our equipment with our current existing hospital accounts. So we have a lot of different sources of revenue and all of that is supporting the ongoing development of the business. In addition, at the parent company level, we use our current investment portfolio with dividends and capital appreciation of the underlying securities also to fund the company's growth. The company has a very tight...

And and Uh huh, various maintenance agreements for our equipment with our current existing hospital accounts. So we have a lot of different sources of revenue and all of that is supporting the ongoing development of the business. In addition at the parent company level, we use our current investment portfolio with dividends.

Michael Feldschuh: In addition, at the parent company level, we use our current investment portfolio with dividends and capital appreciation of the underlying securities also to fund the company's growth. You know, the company has a very tight cap table. We have no warrants outstanding, and we've been very careful around the share float as well because we run the company to maximize shareholder value.

And capital appreciation of the underlying securities also to fund the company's growth. So you know the company has had a very tight.

Speaker 5: cap table. We have no warrants outstanding and we've been very careful around the share float as well because we run the company to maximize shareholder value. So we're going to continue to try to give people more insight into the business as things develop.

Cap table.

We have no warrants outstanding.

And we've been very careful around the share float as well because we run the company to maximize shareholder value. So we're going to continue to try to get people more insight into the business as things develop.

Michael Samuels: Right.

Michael Feldschuh: We're gonna continue to try to give people more insight into the business as things develop.

Speaker 3: Right. Okay. That's great. I think maybe the question would be then, what kind of sales do we have more than hummening machines in that? You know, what are our, what are our, what are our sales for the first six months, versus the first six months last year? You know, what kind of percentage increases?

Michael Samuels: Right. Okay. That's great. I think maybe the question would be then what kind of sales do we have, more than how many machines and that. You know, what are our sales for H1 versus H1 last year? You know, what kind of percentage increase? You know, stuff like. I guess that would help along the line.

Right. Okay. That's great I think maybe the question would be then what kind of sales do we have more than how many machines in that what are what are what our sales for the first six months versus the first six months last year, what kind of percentage increase you know stuff like I guess that would help along the line.

Speaker 5: So in terms of percentage increase, what we announced in this presentation is that we find 91% increase in the revenue at the operating company, not at a pen.

Michael Feldschuh: In terms of percentage increase, what we announced in this presentation is that we saw over a 91% increase in the revenue at the operating company, not at-

So so in terms of percentage increase what we what we announced.

Michael Feldschuh: In terms of percentage increase, what we announced in this presentation is that we saw over a 91% increase in the revenue at the operating company, not at-

In this in this presentation is that we.

We signed a 91 over 91% increase in the revenue at the operating company not alright parent company, 91% that was a mixture between all of the things that I just said, but if you break out the volume at all.

Michael Samuels: Right.

Michael Feldschuh: the parent company. 91%. That was a mixture between all of the things that I just said. If you break out the Volumex sales, so that number was 92.6%. If you look at the sales of Volumex, not by value, but by the number of kits sold-

Speaker 5: 91% that was a mixture between all of the things that I just said but if you break out the volume act

Speaker 5: So that number was 92.6%. If you look at the sales of volume X, not by value, but by the number of kits sold, right? Because remember, at a 9.2% increase, what you see is that the number of kits also rose by 49.4% in the first half of 2022, compared to the first half of 2021. And we had announced,

So that number was 92, 6% if you look at the sales volume ex not by value, but by the number of kits sold right because remember at a nine 2% increase what you see is that the number of kits also rose by 49, 4% in the first half of 2022 compared to the first half of 'twenty.

Michael Samuels: Right.

Michael Feldschuh: Remember, at a 9.2% increase, what you see is that the number of kits also rose by 49.4% in H1 2022 compared to H1 2021. We had announced prior to this as well that Q2 of this year versus Q1 saw an additional, I believe, 10.1% rise in sales compared to Q1.

21, and we had announced.

Speaker 5: prior to this as well that Q2 of this year versus Q1, so in additional, I believe 10.1% rise in sales compared to Q1. So not only are our sales growing, but we're seeing neurobreacher and quarter-over-quarter growth in sales of volume kits. And this is obviously without having the next generation systems launch P.I.

Prior to this as well that Q2 of this year versus Q1 saw an additional I believe 10, 1% rise in sales compared to Q1. So not only are our sales growing but were seeing a year over year and quarter over quarter growth.

Michael Samuels: Right.

Michael Feldschuh: Not only are our sales growing, but we're seeing year-over-year and quarter-over-quarter growth in sales of our Volumex kits. This is obviously without having the next generation systems launched yet.

And sales of <unk>.

Volume at <unk> and this is obviously without having the next generation systems launched yet right.

Michael Samuels: Right. Okay. Well, hey, just keep doing a good job. You guys are doing a great job, and keep up the good work. Thanks.

Speaker 3: All right. Okay. Well, they just keep doing a good job. You guys are doing a great job and keep it going to work. Thanks. Thank you, sir.

Alright, okay.

Just keep doing the good job you guys are doing a great job and keep up the good work. Thanks.

Michael Feldschuh: Thank you, sir. We appreciate your support. I've also received some questions by email from shareholders. I would like to read one or two of them as we still have some time here. One of the questions that said here. I'm going through them because some of them have already been addressed. Let's see. You have over 100 published peer-reviewed studies across many medical conditions that prove your BVA-100 test provides unique accuracy, efficacy, and value. My question is, can you give examples of hospitals that have some of the best utilization? What conditions are they using it for? How many doctors are using it? Are nurses providing the test? Any other color would be helpful. This is a great question.

Thank you Sir we appreciate your support.

Speaker 5: I've also received some questions by email from shareholders. I would like to read one or two of them as we still have some time here.

I have also received some questions.

By email from shareholders.

I would like to to read one or two of them as we still have some time here.

Speaker 5: One of the questions that said here, I'm going through them because some of them have already been addressed. So let's see.

One of the questions.

They said here I'm going through them because some of them have already been addressed.

<unk>.

So.

Uh huh.

Let's see.

Yeah.

Uh huh.

Speaker 5: You have over 100 published peer reviewed studies across many medical conditions that prove your BVA 100 test provides unique accuracy, efficacy and value. My question is can you give examples of hospitals that have some of the best utilization? What conditions are they using it for? How many doctors are using it? Are nurses providing the test? Any other color would be helpful. So this is a great question. I want people to kind of understand where the company has been and what the company's strategy has been pivoting towards.

Let's see.

You have over 100 published peer reviewed studies across many medical conditions approved your BVA 100 test provides unique accuracy efficacy and value my pledge.

Michael Feldschuh: My question is, can you give examples of hospitals that have some of the best utilization? What conditions are they using it for? How many doctors are using it? Are nurses providing the test? Any other color would be helpful. This is a great question.

Can you give examples of hospitals that have some of the best utilization what conditions are they using it for how many doctors are using it are nurses, providing the test any other color would be helpful. So this is a great question I want people to kind of understand where the company has been and what the company's strategy has been pivoting towards.

Michael Feldschuh: I want people to kind of understand where the company has been and what the company's strategy has been pivoting towards. When our diagnostics was first deployed to a lot of these hospitals, usually the person who brings in the diagnostic to the hospital, we refer to them as the clinical champion, and that person might be an early adopter, a heart failure coordinator, a chief of cardiology, et cetera. Usually, those people bring in the device and they champion that through the process of bringing it into the hospital system, and they become users. Our company right now is really focused, and that's part of what our partnership with MedAxiom is about. What we're really focused on is moving from the initial clinical champions into the standard pathway of care at our different hospital systems.

Speaker 5: When our diagnostic was first deployed for a lot of these hospitals, usually the person who brings in the diagnostic to the hospital, we refer to them as the clinical champion. And that person might be an early adapter, heart failure, coordinator, chief of cardiology, etc. Usually those people bring in the device.

When our diagnostic was first deployed for a lot of these hospitals, usually the person who brings in the diagnostic to the hospital, we've referred to them as the clinical champion and that person might be an early adopter.

Heart failure coordinator.

Chief of cardiology et cetera, usually those people bring in the device and a champion that through the process of bringing it into the hospital system and they become users. Our company right now is really focused and that's part of what our partnership with them that axiom is about.

Speaker 5: and they champion that through the process of bringing it into the hospital system and they become users.

Speaker 5: Our company right now is really focused and that's part of what our partnership with Medaxiom is about.

Michael Feldschuh: Our company right now is really focused, and that's part of what our partnership with MedAxiom is about. What we're really focused on is moving from the initial clinical champions into the standard pathway of care at our different hospital systems.

Speaker 5: What we're really focused on is moving from the initial clinical champions into the standard pathway of care at our different hospital systems. So what does that mean? It means that we want to help hospitals have standing orders and protocols so that every time a heart failure patient presents it to hospital, they know to run the task.

What we're really focused on is moving from the initial clinical champions into the standard pathway of care at our different hospital systems. So what does that mean it means that we want to help hospitals have standing orders and protocols. So that every time a heart failure patient presents at the hospital they know to run the test and that's it.

Michael Feldschuh: What does that mean? It means that we want to help hospitals have standing orders and protocols so that every time a heart failure patient presents at the hospital, they know to run the test, and that the test can be ordered not only by the clinical champion, but it can be ordered by other physicians, hospitalists, or the nursing staff as well, so that those users are empowered to get the results of the test and then to turn that into an optimal clinical decision. It's really important to understand that our diagnostic has been associated with tremendous improvements in outcomes, but that's predicated on having educated users use the test and know how to apply that to the right clinical pathway.

Speaker 5: and that the test can be ordered not only by the clinical champion, but it can be ordered by other physicians, hospice, or the nursing staff as well, so that those users are empowered to...

Test can be ordered not only by the clinical champion, but it can be ordered by other physicians hospitalist or the nursing staff as well so that those users are empowered to to.

Speaker 5: to get the results of the test and then to turn back into an optimal clinical decision. It's really important to understand that our diagnostic

Get the results of the test and then to turn that into an optimal clinical decision. It's really important to understand that our diagnostic has been associated with tremendous improvements in outcomes, but that is predicated on having educated users use the test and know how to apply that to the right clinical pathway that is.

Michael Feldschuh: It's really important to understand that our diagnostic has been associated with tremendous improvements in outcomes, but that's predicated on having educated users use the test and know how to apply that to the right clinical pathway.

Speaker 5: been associated with tremendous improvements in outcomes, but that's predicated on having educated users use the test and know how to apply that to the right clinical pathway. That's why we've been very heavily...

Michael Feldschuh: That's why we've been very heavily investing in medical education, grand rounds, a learning management system, continuing to provide research and doing what we call in-services, where we educate clinical teams in how best to use the test. What I'm happy to say is that a lot of the increase in existing accounts is happening. When we go there and when we have our nurse practitioners do one-on-one coaching sessions with the nursing staff at a hospital, and then those nurses feel confident and empowered to order the test and to use it as part of their clinical practice, that drives utilization. We're talking to the C-suite at these hospitals to try to impress upon them the benefit of integrating this in, but the adoption also has to happen at the clinician level, and it has to happen at the lab services level.

Why we've been very heavily investing.

Speaker 5: and medical education, grand rounds, a learning management system, continuing to provide research and doing what we call in services, where we educate clinical teams and how best to use the test.

And medical education Grand rounds of learning management system.

Continuing to provide research and doing what we call in services, where we educate our clinical teams and how best to use the test and what I'm happy to say is that a lot of the increase in existing accounts is happening. So when we go there and when we have our nurse practitioners do one on one coaching sessions with the nursing staff at a horse.

Speaker 5: What I'm happy to say is that a lot of the increased in existing accounts is happening.

Speaker 5: So when we go there and when we have our nurse practitioners, do one-on-one coaching sessions with the nursing staff at a hospital.

Michael Feldschuh: When we go there and when we have our nurse practitioners do one-on-one coaching sessions with the nursing staff at a hospital, and then those nurses feel confident and empowered to order the test and to use it as part of their clinical practice, that drives utilization. We're talking to the C-suite at these hospitals to try to impress upon them the benefit of integrating this in, but the adoption also has to happen at the clinician level, and it has to happen at the lab services level.

Speaker 5: And then those nurses feel confident and empowered to order the task and to use it as part of their clinical practice that drives utilization.

And then those nurses feel confident and empowered to order the test and to use it as part of their clinical practice that drives utilization.

Speaker 5: So we're talking to the C-suite at these hospitals to try to press upon them, the benefit of integrating this in, but the adoption also has to happen at the clinician level.

So we're talking to the C suite at these hospitals.

Try to impress upon them that.

Benefit of integrating this and but the.

Option also has to happen at the clinician level.

Speaker 5: and it has to happen at the lab services level. The lab has to be able to run the costs.

It has to happen at the lab services level. The lab has to be able to run the test the clinicians have to want to order the test they know what to do with it and the C suite has to be very satisfied with the results of what they're getting from it both from a reimbursement point of view and from other health economic benefits. So I hope that gives some kind of color about what we're focused on we see tremendous opportunity.

Michael Feldschuh: The lab has to be able to run the test, the clinicians have to want to order the test and know what to do with it, and the C-suite has to be very satisfied with the results of what they're getting from it, both from a reimbursement point of view and from other health economic benefits. I hope that gives some kind of color about what we're focused on. We see tremendous opportunity to improve the utilization of our technology at these different hospital systems because we've been so focused on these issues. As I said, we brought in a very powerful partner in the form of MedAxiom to help us to accelerate this process. We're seeing some good results from it. Let's see. Another question we had was, are you seeing any success in larger IDNs?

Speaker 5: clinicians have to want to order the test and know what to do with it. And the C-suite has to be very satisfied with the results of what they're getting from it, both from a reimbursement point of view and from other health economic benefits.

Speaker 5: So I hope I give some kind of color about what we're focused on. We see tremendous opportunity to improve the utilization of our technology at these different hospital systems because we've been so focused on these issues. And as I said, we bought in a very powerful partner in the form of net axiom to help us to accelerate this process. So we're seeing some good results from this.

Michael Feldschuh: We see tremendous opportunity to improve the utilization of our technology at these different hospital systems because we've been so focused on these issues. As I said, we brought in a very powerful partner in the form of MedAxiom to help us to accelerate this process. We're seeing some good results from it. Let's see. Another question we had was, are you seeing any success in larger IDNs?

To improve the utilization.

<unk> of our technology at these different hospital systems, because we've been so focused on these issues and as I said, we bought in a very powerful partner in the form of met axiom to help us to accelerate this process. So we're seeing some good results from it.

Speaker 6: Let's see, another question we had was, are you seeing any success in larger IDNs? So this is also a key strategy question for Daxor. Do we see integrated delivery networks? What about what we would call a payer-based strategy? You know, if you have something that's inexpensive and it lowers the total cost of care for patients.

Let's see another question. We had was are you seeing any success in larger idms.

Michael Feldschuh: This is also a key strategy question for Daxor. Do we see integrated delivery networks? What about what we would call a payer-based strategy? You know, if you have something that's inexpensive and it lowers the total cost of care for patients in the hospital, the hospitals are interested. But what about payers, where you say, "Look, the total cost of care for these heart failure patients that you're responsible for over a 2, 3, 4, 5-year time period, what if you could make sure that those patients were much less likely to end up in the hospital in the first place?

This is also a key strategy question for Dax or do we see integrated delivery networks what about.

What we would call a payer based strategy.

If you have something that's inexpensive and it lowers the total cost of care for patients.

Speaker 5: in the hospital, the hospitals are interested. But what about payers where you say, look, the total cost of care for these heart failure patients that you're responsible for over a two, three, four, five year time period. What if you could make sure that those patients were much less likely to end up in the hospital in the first place? If they go to the hospital, they'll stay there for a shorter amount of time and then they won't readmit as frequently as they did in the past.

In the hospital the hospitals are interested but what about payers, where you say look the total cost of care for these heart failure patients that you're responsible for over 2345 year time period, what if you could make sure that those patients were much less likely to end up in the hospital in the first place if they go to the hospital they'll stay there for a short term.

Michael Feldschuh: If they go to the hospital, they'll stay there for a shorter amount of time, and then they won't readmit as frequently as they did in the past." The people who would really be interested in that kind of value proposition are people like accountable care organizations, integrated delivery networks, where the total cost of care is something that they're responsible for. We see tremendous opportunity in proving out that kind of healthcare balance and benefit. We've actually retained someone to be focused as a consultant almost exclusively on this avenue of development for the company. As we make progress in that area, we'll be sharing more updates in future shareholder calls and communications. Let's see if there's any other questions here. One question is, do you see...

At a time and then they wont readmit as frequently as they did in the past the people who would really be interested in that kind of value proposition our people like accountable care organizations and integrated delivery networks, where the total cost of care is something that they are responsible for so we see tremendous opportunity and proving out.

Speaker 5: And people who would really be interested in that kind of value proposition are people like the accountable care organizations, integrated delivery networks where the total cost of care is something that they're responsible for. So we see tremendous opportunity in proving out that kind of healthcare balance and benefit. We've actually detained someone to be focused.

That kind of health care balanced and benefit we've actually retained someone to be focused.

Michael Feldschuh: We've actually retained someone to be focused as a consultant almost exclusively on this avenue of development for the company. As we make progress in that area, we'll be sharing more updates in future shareholder calls and communications. Let's see if there's any other questions here. One question is, do you see...

Speaker 5: as a consultant almost exclusively on this annual development for the company. So as we make progress in that area, we'll be sharing more updates in future shareholder calls and communication.

As a consultant almost exclusively on this avenue of development for the company. So as we make progress in that area will be sharing more updates.

In future shareholder calls and communications.

Speaker 6: I want to say, there's any other questions here.

Let's see if there's any other questions here.

Speaker 5: One question is, do you see, can you give us a high level overview of this you're getting from the Army, the Air Force, NIH?

One question is do you see can.

Michael Feldschuh: Can you give us a high-level overview of the support you're getting from the Army, the Air Force, the NIH? How often are they engaged with us? Do you see what is the outlook for any more grant money from them, and for further military contracts? Now that we've completed our phase 2 Army contract successfully, and we've submitted or are in the process of submitting our device for final FDA approval, that then opens us up to what's called a phase 3 allocation with the US Military. Phase 3 is where the military allocates larger sums of money to do further clinical validation or preparation for deployment of new systems that they're interested in. Yes, we are eligible for phase 3.

Can you give us a high level overview of the support you're getting from the army the Air Force NIH.

How often are they engaged with us do you see.

Speaker 5: How often are they engaged with us? Do you see what is the outlook for any more grant money from them? And for further military counsel.

What is the outlook for any more grant money from them.

And for further military contracts. So now that we've completed our phase two army contract successfully submitted or are in the process of submitting our device where final FDA approval.

Speaker 5: So now that we've completed our phase two Army Contract Successful, we've submitted or in the process of submitting our device for final FDA approval.

Speaker 5: That then opens us up to what's called a phase three allocation with the US military. Phase three is where the military allocates larger sums of money to do further clinical validation or preparation for deployment of new systems that they're interested in. Yes, we are eligible for phase three. We're going to have to work with them and the different partners within the Department of Defense to find the right.

That then opens us up to what's called a phase III allocation with the U S. Military phase three is where the military allocates larger sums of money to do further.

Michael Feldschuh: Phase 3 is where the military allocates larger sums of money to do further clinical validation or preparation for deployment of new systems that they're interested in. Yes, we are eligible for phase 3.

Clinical validation or preparation for deployment of new systems that they're interested in.

Yes, we are eligible for phase III, we're going to have to work with them and the different partners within the department of defense to find the right.

Michael Feldschuh: We're going to have to work with them and the different partners within the Department of Defense to find the right area of funding to further support what we do. There's no question that blood volume analysis has a tremendous amount of applicability to military casualty care. That's why the DoD gave us these contracts starting more than four years ago. Whether it's the management of patients with trauma or burns or who develop sepsis, et cetera, there's an important and significant role for BVA to improve outcomes in those areas. We anticipate continuing to engage with them and continuing to get more contracts from them. In addition, Daxor has a very active grants team. We have a number of proposals before the NIH right now, and as well as a number of trials that are ongoing.

Speaker 5: area of funding to further support what we do. But there's no question that blood volume analysis has a tremendous amount of applicability to military casualty care. That's why the DOD gave us these contracts starting more than four years ago.

<unk> of funding.

Further support what we do but there's no question that blood volume analysis has a tremendous amount of applicability to military casualty care. That's why the D. O D gave us these contracts starting more than four years ago. So whether it's the management of patients with trauma or burns or who developed sepsis et cetera, There's a there's an.

Michael Feldschuh: Whether it's the management of patients with trauma or burns or who develop sepsis, et cetera, there's an important and significant role for BVA to improve outcomes in those areas. We anticipate continuing to engage with them and continuing to get more contracts from them. In addition, Daxor has a very active grants team. We have a number of proposals before the NIH right now, and as well as a number of trials that are ongoing.

Speaker 5: So whether it's the management of patients with trauma or burns.

Speaker 5: or who developed Pceptus, et cetera, there's an important and significant role for BVA to improve outcomes in those areas. So we anticipate continuing to engage with them and continuing to get more contact from them. In addition, Daxwar has a very active grants team. We have a number of proposals before the NIH right now and as well as a number of tiles that are ongoing.

And significant role for BVA to improve outcomes in those areas. So we anticipate continuing to engage with them and continuing to get more contracts from them. In addition, <unk> has a very active grants team.

We have a number of proposals before the NIH right now.

And as well as the number of trials that are ongoing and that's a very active part of our business strategy as we grow our business partners and add more non dilutive funding to the company to accelerate our adoption and our clinical evidence.

Michael Feldschuh: That's a very active part of our business strategy as we grow our business partners and add more non-dilutive funding to the company to accelerate our adoption and our clinical evidence. All right. Well, I see that we are at the bottom of the hour here, and we're almost out of time. I just want to say to all of our shareholders, thank you very much. Management and the entire team is gratified by your support, and we are excited about the work of the company and our mission to serve patients and to make such a difference in terms of the outcomes in people's lives. We're happy to have you as our business partners in this endeavor, and we look forward to having all of us do well by continuing to do good. Thank you very much.

Speaker 5: And that's a very active part of our business strategy as we grow our business partners and add more non-dilutive funding to the company to accelerate our adoption and our clinical habits.

Alright, well I see that we are.

Speaker 5: All right, I see that we are at the bottom of an hour here and we're almost out of time. So I just want to say to all of our shareholders, thank you very much, management and the entire team is gratified by your support. And we are excited about the work of the company and our mission to serve patients.

At the bottom of the hour here and we're almost out of time. So I just want to say to all of our shareholders. Thank you very much management and and the and the entire team is gratified by your support and we are excited about the work of the company and our our mission to.

Michael Feldschuh: Management and the entire team is gratified by your support, and we are excited about the work of the company and our mission to serve patients and to make such a difference in terms of the outcomes in people's lives. We're happy to have you as our business partners in this endeavor, and we look forward to having all of us do well by continuing to do good. Thank you very much.

[noise] sort of patients and to make such a difference in terms of the outcomes in People's lives. We're happy to have you as our business partners in this endeavor.

Speaker 5: and to make such a difference in terms of the outcomes and people's lives, we're happy to have you as our business partners in this endeavor. And we look forward to having all of us do well by continuing to do good. Thank you very much.

And we look forward to having all of us do well by continuing to do good. Thank you very much.

Speaker 2: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

[music].

Yeah.

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Q2 2022 Daxor Corp Earnings Call

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