Q4 2023 Perimeter Medical Imaging AI Inc Earnings Call
Thank you.
Okay.
[music].
None: Good afternoon, ladies and gentlemen, and welcome to the perimeter Medical Q4 2023 conference call.
None: At this time all lines.
None: They are in listen only mode.
None: Following the presentation, we will conduct a question and answer session.
None: If at any time during this call you are required immediate assistance. Please press star zero for the operators.
None: This call is being recorded on Thursday March 28 2024.
None: I would now like to turn the conference over to Jody rates. Please go ahead.
Jodi Regts: Thank you.
Jodi Regts: Good afternoon. Thank you for joining us on this call and webcast to provide the fourth quarter and year end 2023 results for cruiser medical imaging AI or perimeter.
Jodi Regts: Joining me on today's call is Adrian Mendes Perimeters, Chief Executive Officer, who will provide an overview of perimeters progress across the business along with shared Bryan Chief Financial Officer, and Andrew Berkeley, Perimeters, Chief Innovation Officer, who are available to answer your questions. Let me open up the call for Q&A after Arthur.
Jodi Regts: Paired remarks.
Jodi Regts: Please be advised that during this call we will make a number of statements that are forward looking including statements regarding the future financial position business strategy and strategic goals commercial activities and timing competitive conditions research and development activities projected costs and capital expenditures research and clinical test.
Jodi Regts: Outcomes, the potential benefits of our products, including perimeter F series OCG perimeter B series, OTT and perimeter image assist the expected benefits of parameters updated version of its energy assist AI perimeters ability to broaden its user base and the expected approval of its proprietary AI.
Jodi Regts: Expectations regarding new products, and the timing thereof, and expectations regarding opportunities for market expansion.
Jodi Regts: Forward looking statements, which are subject to numerous risks and uncertainties many of which are beyond our control, including the risks and uncertainties described from time to time in our SEDAR filings.
Jodi Regts: Our results may differ materially from those projected on today's call. We undertake no obligation to publicly update any forward looking statements.
Jodi Regts: For additional information about the risks and uncertainties facing our business management encourage you encourage you to review the Companys public filings and press releases, which are posted on SEDAR plus dossier.
Jodi Regts: A news release summarizing this quarterly update will be made available under the investors section of our website at perimeter net dot com and filed with SEDAR now I would like to turn the call over to Adrian.
Adrian Mendes: Thanks, Jody good afternoon, thanks, everyone for joining our call.
Adrian Mendes: Today, I will begin by walking through where we've come from in 2023 and the progress made since I joined the company mid year after conducting a thorough analysis of the business with.
Adrian Mendes: We focused on improving key areas of the business and I believe we have made significant progress in this regard.
Adrian Mendes: Perimeter is entering the scaling phase of its evolution and as such we aim to strengthen the company's infrastructure to support our planned growth we.
Adrian Mendes: We set clear goals to improve T morale increased employee retention and remove any silos, preventing effective collaboration across the organization as a whole all with the intent of greatly increasing our pace of execution.
Adrian Mendes: We've made the changes at the board and executive levels to augment our leadership focusing on sales and marketing finance and product innovation, we're gelling as a team and together, we're creating a strong culture that will enable us to achieve our ambitious business goals.
None: Before I came onboard as CEO I have conducted a thorough diligence on perimeter technologies.
None: And just as I concluded then we continue to see today strong evidence of the compelling product market fit.
None: For perimeters commercially available S series OTT device.
None: Of note we have made some important investments in our sales organization over the past year and implemented some key process improvements.
None: As a reminder, perimeters F series represents our flagship inter operative OTT imaging technology.
None: Which provides surgeons with image resolutions capable of visualizing tissue structures at the cellular level down to the critical two millimeter depth, we're assessing margins real time in the or.
None: Something we have consistently maintained is a robust sales pipeline of surgeons interested in learning more about using more about and using our technology.
None: However, historically the sales cycle has been lengthy one key achievement. This past year was significantly add to our clinical education image trading team and to redeploy resources to help eliminate bottlenecks in our sales cycle.
None: We've also had a high degree of success, placing additional F series devices within existing customer networks.
None: This is shortening the sales cycles for those placements and lead to additional follow on word of mouth recommendations from surgeons to their colleagues within their broader health network.
This is a bit of an inflection point for perimeters commercialization journey and we believe these testimonials from search and end users as well as other stakeholders and the broader healthcare system further validate the value of perimeters technology and our goal to make it the standard of care in cancer surgery.
None: The network up early expert adopters, who are capable and driven to use our ground breaking technology continues to grow in addition to exceeding our early stage revenue stream. These customers provide us with a direct conduit to gather additional products feedback from the field in order to iterate and improve upon current futures.
None: More commonly applied to computer software and hardware development. We're successfully applying this agile approach not just to our current product offering but also to support our future product pipeline as well.
None: Let me pause here for a moment.
None: And ask a bit about our approach and speak a bit about our approach to building a robust product pipeline and re energizing product development at perimeter.
In 2023, we promoted one of perimeter as co founders Andrew Berkeley, the newly created role of Chief Innovation Officer, not only did this decision reflects the well deserved recognition of interest efforts over the years, but it also emphasized our strong commitment to broaden our new product development pipeline and perimeter importantly.
None: Importantly, we formalized our product roadmap processes and we've identified a number of product innovations that we expect to rollout in a couple of in the next coming months.
None: That leads me to the progress made across our Nexgen AI development and the ongoing pivotal trial by.
None: By way of background Perimeters V series device combines our innovative OTT platform with our proprietary image assist AI technology.
None: New enhanced AI, which takes advantage of additional trading data and our latest advancements demonstrates improved sensitivity specificity precision and recall.
None: We recently published results from a peer reviewed retrospective study that demonstrated parameters deep learning model show a high level of sensitivity and specificity accurately identified 96, 8%.
None: But apologies positive margins. These results highlight the clinical viability of AI enhanced margin visualization using OTT in breast cancer surgery, and its potential to decrease re operation rates.
None: Following productive interactions with the FDA last year, we successfully implemented our substantially enhanced AI algorithm and the ongoing pivotal clinical trial under the existing study protocol as a result, all clinical trial sites are now using the updated AI as patients continue to enroll in the ongoing study.
None: It is expected that this updated version of image assist AI will contribute to more accurate classification as well as fewer false positives and negatives.
None: In addition, we are permitted to enroll additional subjects up to 531 and successfully added new clinical trial sites at Mayo clinic in Florida, and Fred Hutch Cancer Center in Seattle to support accelerated patient enrollment.
None: While I am proud of all we have accomplished in the past six to nine months, we are focused on the future and have set aggressive goals to accomplish in 2024.
None: Within our clinical trial patient enrollment is tracking well and actually trending better than modeled.
None: With the potential to become a new standard of care during breast conservation surgery. We look forward to keep you updated on our progress advancing perimeter B series OTT with image assist AI.
None: We will execute on our blueprint to further expand our reference sites and surgeon champions, we expect to broaden our installed base by connecting with high potential surgeons leveraging existing institutional relationships within the health care networks and identifying the optimal geographic regions in particular, those which offer the lowest barriers.
To entry and lowest cost to providing image training support.
None: Our go to market strategy is further supported by a strong IP position protected by numerous patents.
None: And importantly, a proprietary image database with over 2 million images relates to breast cancer alone.
None: Yeah.
None: We will remain disciplined in our product development Roadmaps and leverage our extensive AI in med tech expertise to broaden our product pipeline.
None: Our World Class AI team has developed models tailored for real time applications in health care settings, and use our vast image library to train these models to achieve an industry leading results.
None: In fact, our use of AI extends far beyond the standard image classification use case and our AI team is doing a wonderful job working to deploy AI models throughout our technology stack to improve the customer experience in many different ways.
None: We're excited to begin sharing some of these advancements with you as a rollout over the course of this coming year.
None: I believe that perimeters AI leadership represents a key value driver as we build the product pipeline that aims to improve surgical outcomes and also broaden our addressable market through a variety of tissue types beyond breast.
None: Turning briefly to our financial position.
None: As of December 31, 2023, cash and cash equivalents were approximately $14 million U S dollars.
All of our clinical all of our current clinical and product development plans remain on track and within our current financial modeling for more details. Please refer to the annual reports and press release filed today.
None: Before concluding I want to highlight some recent important peer reviewed research coming out of the University of Texas MD Anderson Cancer Center. This demonstrates this data demonstrates that high reoffer re operation rates after breast conserving surgery persist.
None: And are correlated with elevated risks and adverse outcomes for patients concluding that more attention and continued efforts should be made to reduce reoperation rates.
None: The fact this problem continues to be widespread hugely impacting on a social level and a very large economic level reinforces perimeters mission statement, our work at perimeter strive to directly address the significant cost and negative patient outcomes due to re operations by providing innovation intra operative imaging technologies.
None: Our goal is that no patient has to go through the emotional physical trauma off a second surgery due to canceled left behind.
Our entire team is galvanized by this mission, we see here an opportunity to make a real difference in the lives of patients we intend to execute on our commercial clinical and product development strategies and look forward to keeping you updated on our progress in conclusion I am very excited about what lies ahead for perimeter 'twenty 'twenty four is going to be a big year for us.
None: With that I will now open the call up for questions operator.
None: Thank you ladies and gentlemen, we will now begin the question and answer session.
None: So do you have a question. Please press the star followed by the one on your Touchtone phone.
None: You will hear three tone prompt acknowledging your request.
None: Questions will be pulled in the order there.
None: Jewish to decline from the polling process. Please press the star followed by the two.
None: If you are using a speaker phone please lift the handset before pressing any keys.
We'll pause for just a moment to compile the Q&A roster.
None: Okay.
None: Ladies and gentlemen, there are no questions at this time.
None: I'll now turn the conference.
None: Back over to Jodi <unk> for closing remarks. Please go ahead.
Jodi Regts: Thank you thanks, everyone for joining us today, we look forward to keeping you updated on our progress. This ends today's call.
None: Ladies and gentlemen that concludes your conference call for today, we thank you for participating and ask that you. Please disconnect your lines.
Jodi Regts: Thank you.
Jodi Regts: Yes.
Jodi Regts: Okay.
None: Good afternoon.
None: Got it.
None: Yes.
None: Okay.
None: Sure.
None: Yes.
None: Okay.
Yes.
None: Okay.
None: [music].
None: Yes.
None: [music].
None: Thank you.
None: Thank you.
None: Okay.
None: Thank you.
None: Okay.
None: [music].
Yes.
Okay.
None: Okay.
None: Okay.
None: [music].
None: Okay.
None: Sure.
None: Yes.
None: [music].
None:
None: True.
None: Yes.
None: Food.
None: Yes.
None: Okay.
None: Uh huh.
None: [music].
None: Okay.
None: Okay.
None: [music].
None: Okay.
None: Okay.
None: Yes.
Yes.
Thanks.
None: Okay.