Good afternoon and welcome to the Census Healthcare 3rd Quarter 2026 Financial Results Conference Call. All participants will be in 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 1 on your touchtone phone. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Lee Salvo, Investor Relations. Please go ahead. Thank you.

Good afternoon, and thank you all for joining today's call to discuss Census Healthcare's third quarter 2026 financial results. Joining me from Census are Joe Sardano, Chairman and Chief Executive Officer, Michael Sardano, President, Chief Commercial Officer and General Counsel, and Javier Rampolla, Chief Financial Officer. As a reminder, some of the matters that will be discussed during today's call contain forward-looking statements within the meaning of federal securities laws. All statements, other than historical facts that address activities since its healthcare assumes, plans, expects, believes, intends, or anticipates, and other similar expressions, will, should, or may occur in the future, are forward-looking statements. The forward-looking statements are management's beliefs based on currently available information as of the date of this conference call, November 12, 2026. Census Healthcare undertakes no obligation to revise or update any forward-looking statements except as required by law. All forward-looking statements are subject to risks and uncertainties as described in the company's Forms 10-K, 10-Q, and other SEC filings. During today's call, references will be made to certain non-GAAP financial measures. Thank you, Lee, and good afternoon, everyone.

At the beginning of this year, we laid out five priorities for Census. Educate the market about SRT and the new reimbursement environment, accelerate customer adoption, expand recurring revenue opportunities, broaden our commercial reach, and move Census towards sustainable profitability. Those priorities have not changed. I want to take a minute to start with the bigger picture because it's important to understand what we're building at Census. For decades, surgery, including Mohs surgery, has been a primary treatment option for non-melanoma skin cancer. Mohs is an effective and well-established procedure, but surgery isn't the right choice for every patient. Many patients want to avoid cutting, stitches, scarring, or the recovery associated with surgery. particularly when the cancer is in the cosmetically sensitive area. SRT gives physicians and patients another option. It's a non-invasive treatment that can address certain skin cancers without surgical excision. We believe patients should understand their treatment choices and physicians should have the technology to offer those choices when clinically appropriate. That's our vision for SENSYS. We're not simply selling equipment. are working to make SRT a more widely understood and accessible treatment option. And we're making progress. During the first half of the year, we concentrated on educating the market about the dedicated CPT codes and what the new reimbursement landscape means for physicians and their practices. Now we're seeing that grand work translate into a stronger pipeline, more inbound interest and engagement with a broader range of customers, from independent dermatology practices to larger physician groups. To me, that's the real opportunity. We're building a broader, more diversified and direct customer base, including organizations with the potential to bring SRT to multiple locations. That's how we intend to build a business with a wider geographic reach and more sustainable, predictable growth. The dedicated CPT codes are an important part of that transition. giving physicians greater clarity about the economics of incorporating SRT into their practices. We've expanded those efforts beyond the physician community. Our recent launch of TreatSkinCancer.com is designed to help patients better understand their options, including noninvasive alternatives, and have informed conversations with their physicians. And our ambitions extend beyond U.S. dermatology. We continue to pursue international opportunities, particularly in Asia Pacific, while exploring adjacent markets and applications where our technology offers value. Another important part of our strategy is what happens after a system is placed. As our installed base grows, we have opportunities to support greater treatment utilization and develop revenue streams through programs such as our Fair Deal Agreement and Census Link. Over time, our goal is to combine equipment sales with software, services, and utilization-based revenue. We believe that can create a stronger, more scalable business. I also want to recognize a milestone I'm especially proud of. We recently placed our 1000th SRT system. That represents years of building this company, developing the technology, and earning the trust of physicians. for building a stronger, more diversified census. We have the technology, the reimbursement framework, the commercial programs, and the expanding base of physicians who recognize the value of what we offer. Our focus is on bringing those pieces together to drive adoption, increase utilization, and build consistently growing profitable business. At the start of this year, we said that each quarter would be better than the previous one. In the next few minutes, Michael and Javier will highlight three areas that I believe clearly indicate our progress so far in 2026. But in short, we delivered more units directly to dermatology practices in Q3 than in the prior two quarters combined. In addition, excluding sales to our historically largest customer, both revenue and gross margins increased year over year and quarter over quarter. We expect to build on this momentum in the fourth quarter. Importantly, every system we place creates a revenue opportunity for Census, whether through an outright sale or recurring revenue generated over time through our alternative commercial models. With that, I'll turn the call over to Michael to discuss our commercial activities in more detail.

Michael. Thank you, Joe. I'd like to start by giving some color on what we're seeing in the market because the nature of our customer conversations in the United States has evolved considerably since the beginning of the year. When the dedicated CPT codes took effect on January 1st, our first job was education. Physicians needed to understand the codes, the economics, and most importantly, see reimbursement working in practice. That conversation is changing. Increasingly, We're no longer explaining whether reimbursement works. We're talking about how to bring SRT into their practices. We continue to support that process with physician education and training in the technology, treatment workflows, and system operation. Our pipeline strengthened during the third quarter through physician education, inbound inquiries, and follow-ups from our commercial initiatives. We are seeing engagement across independent dermatology practices and larger physician groups, and we're increasingly spending time with organizations that have multiple locations. Those discussions can take longer than a single practice sale, but one relationship can ultimately create opportunities for multiple systems. During the quarter, we secured initial system purchases from two large private equity-backed dermatology groups. These new relationships illustrate the type of customer we are now reaching. Customers also have more ways to access our technology. They can purchase the system outright, use financing, enter a rental arrangement, or participate in our fair deal agreement program. Those options allow us to meet practices where they are. We're seeing customers evaluate direct ownership as they better understand the reimbursement economics while larger groups in particular may find our Fair Deal Shared Service model an attractive way to introduce SRT across multiple practices. We are continuing to focus on increasing utilization within the Fair Deal Agreement program. That will allow us to participate in treatment activity as adoption expands. At the same time, we're continuing to develop CensusLink and other software and service opportunities across our installed base. These initiatives are part of our longer-term strategy to complement equipment sales with recurring utilization-based revenue. On the patient side, we launched TreatSkinCancer.com in September to help people learn about skin cancer treatment options, including non-invasive approaches, and to encourage informed conversations with their physicians. It complements the work we're doing with dermatologists. Early engagement included nearly 1,000 visits during the initial launch period and more than 2,000 social media views. Internationally, I spent a significant amount of time during the quarter developing opportunities across Asia Pacific, particularly in Australia, New Zealand, China, and Hong Kong. During the fourth quarter, Census will additionally be attending conferences in Europe and Korea. We continue to see physician interest in SRT across these markets. China remains an important market for us, and the response we've seen in Australia has been especially encouraging. Australia and New Zealand have a substantial skin cancer burden, which underscores the potential need for additional treatment options such as SRT. We're actively developing relationships that could support our commercial presence, and we intend to be disciplined as we pursue international expansion. Our priorities are straightforward. Convert the pipeline, expand adoption across a broader customer base, increase utilization of systems already in the field, and give customers the flexibility to bring SRT into their practices. We have more opportunities in front of us today than at the beginning of the year. Now it's about conversion. With that, I'll turn the call over to Javier for review of the financials. Javier.

Thank you, Michael, and good afternoon, everyone. I will walk through our third quarter financial performance and provide some context around the shipment activity we discussed earlier. Revenue was $6 million compared with $6.9 million in the third quarter of 2025, a decline of 13%. The year-over-year difference was driven primarily by product mix with more lower price SRT100 systems relative to SRT100 vision systems and no sales to our historically largest customer during the quarter. Let me put the system shipments into perspective because the customer mix is an important part of the story. We shipped 26 systems in the third quarter compared with 16 a year ago. Eight of these quarter systems were originally expected to ship in the second quarter but were delayed by third-party financial delays as we discussed on our last call. Excluding those eight carryover systems, we shipped 18 systems in the third quarter of 2026. Of the 16 systems we shipped in the third quarter of 2025, 10 went to our historically largest customer and six went to other customers. Shipments also do not always translate into revenue at the time of delivery. Three systems were shipped this quarter under fur deal agreement or rental arrangements compared with none in the year-ago period. Revenue under those arrangements is recognized over the applicable agreement term rather than entirely upon shipment. Turning to profitability. Cost of sales decreased to $2.7 million from $4.2 million. Gross profit increased to $3.3 million from $2.7 million, and gross margin improved to approximately 55% from 39% a year ago. That margin improvement was primarily driven by the mix of systems shift, including a greater proportion of higher margin SRT 100 units. On operating expenses, General and administrative expense was $2.3 million compared with $1.9 million a year ago, primarily reflecting higher legal and professional fees, partly offset by lower insurance costs. Selling and marketing expense was essentially flat at $1.5 million. Riches on development expense decreased to $1.1 million from $1.8 million, primarily reflecting reduced lobbying costs and lower headcount. Adjusted EBITDA was negative $1.5 million versus a negative $2.4 million a year ago. As a reminder, adjusted EBITDA is a non-GAAP measure and the reconciliation is included in today's earnings relief. Net loss was $1.5 million or $0.09 per share compared with a net loss of $0.9 million or $0.06 per share in the prior year quarter. An important difference in that comparison is that the third quarter of 2025 included an income tax benefit of approximately $1.5 million. On the balance sheet, we ended September with $12.9 million in cash, restricted cash and cash equivalents, compared with $15.2 million at the end of June. Prepaid inventory declined to zero from $0.6 million at June 30, We had no outstanding borrowings under our revolving line of credit at quarter M. Looking ahead, we remain focused on converting commercial opportunities into revenue while managing costs and working towards sustainable profitability. With that, I'll turn the call back to Joe.

Thank you, Javier. Before we open the call for questions, I want to leave you with one important point. We've spent years developing our technology, building our installed base, and demonstrating the value of SRT as a non-invasive treatment option for non-melanoma skin cancer. What provides an exciting catalyst for our business is the new reimbursement environment. The dedicated CPT codes that took effect at the beginning of this year represent an important change. For the first time, physicians have the procedure-specific codes that provide greater clarity around reimbursement and the economics of offering SRT in their practices. We believe the changes in commercial opportunity for census. We're now seeing conversions move beyond educating physicians about reimbursement to discussing how they can incorporate SRT into their practices. We're engaging with a broader range of customers, including larger dermatology groups with the potential to adopt our technology across multiple locations. and we're building a business model that extends beyond equipment sales with opportunities for recurring revenue tied to system utilization, software and services. I continue to be inspired by the commitment of our team, encouraged by our progress and confident in the opportunity ahead. Our focus is on capitalizing on that opportunity, converting interest into sales and building a profitable, more diversified business. Thank you for joining us today, and operator, we're ready to take questions.

Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing any keys. If at any time your question has been addressed and you'd like to withdraw your question, please press star then two. Once again, to join the question queue, please press star then one now. At this time, we will pause momentarily to assemble our roster. Our first question comes from Anthony Vendetti of Maxim Group. Please go ahead.

Thank you. So, Joe, obviously getting these CPT codes as of 1-1-26 is, I know, something you and the firm has worked hard towards achieving. I think you mentioned in the last call that in addition to those dedicated CPT codes for SRT, that CMS has proposed a 26% increase in hospital-based SRT delivery codes. Can you give us an update on where that's at and what's the likelihood that that gets approved and finalized, and if so, the timing there, please?

Thanks for the question, Anthony, and thanks for being on. The 26% is very, very unique. It's been proposed by CMS, and usually as they propose it when they announce it, as they did last year about our reimbursement, things go into effect January 1 of the upcoming year, so 2027. As of right now, that has been a very good proposal and has been very well accepted by ASTRO and the other providers. you know, societies that are involved. So quite frankly, we fully expect that 26% to take effect January 1st in the hospital environment.

Okay, and then... Yeah, just to add to that, Anthony, this is Michael. How you doing? Good, how are you? Yeah, so that reference that you're talking about is going into effect. It's for level one radiation treatment delivery in hospital coding, and it just so happens that we are part of that level one. So that's why it's going up.

Okay, great. And so that should go into effect 1-1-27? Correct. Okay, excellent. And then, obviously, you talked about some new APAC markets, including Australia and New Zealand. And I think you mentioned you were pursuing a regulatory application in Australia. Where is that at and any type of timeline on that application? Michael, you go ahead since you just came from there.

Yeah, exactly. Yeah, great question. So SRT is already cleared for use in Australia, actually. So we're good to go. We're green-lighted to sending machines over there. However, we haven't really pushed into the market over the last decade. I think that A lot of that has to do with the reimbursement structure of that society in general, but that is changing dramatically as far as the last two dermatology and radiation oncology meetings that I attended there in Australia. We're seeing a desperation from patients. And again, the numbers are staggering there. There's only 26 million people in Australia, but 30% of them will get skin cancers. So it's a staggering number. And then there's deloids there as well. Yeah. So there's such an amount there. And the craziest part about it is where here in the United States, we have dermatologists, a lot of them being Mohs surgeons, and the primary way to get rid of the skin cancer besides SRT is Mohs surgery. In Australia, they barely have Mohs surgeons. There's only 600 total dermatologists in the entire country, and only about 60 of them are actual Mohs surgeons. They don't rely on that either. They just excise you. So imagine if you're an 80, 85-year-old woman or man going into a dermatology facility, you're not getting Mohs, you're not getting SRT, you're going to get your entire nose chopped off. That's literally what's happening. So there are numerous private equity-backed groups with a lot of money pushing into the market and garnering the attention of patients, especially in larger areas like Sydney. So we're working with a couple of those groups, and they're very interested in getting SRT and marketing that in those larger areas in Australia, like in Sydney and New South Wales. So we'll continue to update you on the progress there, but we're pretty excited to be working with those groups.

Okay, so it's already cleared. It's just a matter of educating them and getting into the hands of the dermatologists there, which obviously there seems to be a huge need.

Okay. Yeah, I mean, these groups are treating 1,000 patients a month for skin cancer. So it's astronomical, the numbers. So imagine putting some of those on SRT, you know, and that's really the only device that can do more than 10 patients a day. You can literally do 50 patients a day on our machine because it's less than five minutes total for the blocking in, setting up, and the radiation is only 40 seconds. So you can scale it.

Okay, and then maybe just lastly, you know, you mentioned on the call in the press release a mix of lower priced SRTs. Is that because you just had more sales internationally? Or, you know, is that just a sort of just a just a slight mix shift that you think is temporary?

We're starting to see the shift towards the SRT100, plain and simple, versus the Vision, and we do have higher margins with our SRT100 versus the Vision product. So we're going to see larger margin numbers, and now we're catching up with our revenue as well in selling multiple units as well as the revenue that we're starting to see from our FDA programs and all of the other recurring revenue programs we have.

Is that partially because division systems were the primary purchase of your former largest customer, and now you're getting more discerning customers saying, hey, do we really need to spend this for the vision product when we can get the SRT without the ultrasound capability?

Yeah, I think the reimbursement is pushing a lot of customers towards the SRT-100s. and so we're excited for that opportunity because of the opportunity it gives us for our margins and profitability. The Vision product, it was just very factual. It costs more to manufacture. Okay, great.

We are seeing, however, I just want to add to that, we are seeing some interest internationally for the Vision product now. A lot of our sales that are upcoming are on the Vision most likely. because with just socialized medicine over there, they want something with imaging. And again, we've said this in the past, every form of radiation oncology, whether it's breast cancer, colorectal, they'll do some form of imaging prior to treatment with radiation. And so a lot of the international community in radiation oncology wants a form of imaging as well. So the national interest is on the SRT100 vision. But to Joe's point and to what you already reiterated, because of the reimbursement, the SR-2100 became a lot more likely as a purchase than the SR-2100 Vision in the United States.

Okay, great. Thanks for all that, Carlton. I'll hop back into the queue. Thanks, Anthony.

Thanks, Anthony.

Our next question comes from Benjamin Hainor of Lake Street Capital Markets. Please go ahead.

Good afternoon, gentlemen. Thanks for taking the questions. First off, for me, on the couple of private equity-backed practices or groups that bought units, it sounds to me, maybe I'm reading too much into this, that they kind of sharpened their pencils and decided that purchasing was a better option for them rather than going with the FDA program. Is that true? And then, you know, have others kind of made similar decisions, and do you think that that The capital direction is the more likely that these guys will go in the future.

Michael, I'll let you answer that because it's quite the opposite of that, Ben, but let me have Michael explain that.

Yeah. Hey, Ben. How are you? So essentially, we announced that we had two private equity groups go with us to sign contracts in this past quarter, and your question is asking which One, did they go with, which model did they go with? The fair deal agreement or recurring revenue or did they outright purchase? And the answer to that is both because one decided to purchase and one decided to go with the fair deal agreement. So I can tell you that much and we'll see where that goes. It really, that's the type of thing we were talking about where our flexibility of our model gives us a leg up on any competitor in the market because One private equity-backed group or one single practice wants one thing, and the other one wants another thing. It could be a personal preference. It could be a personal life of the dermatologist or just the way one is funded versus the other. You're seeing a lot of things going on right now in tech. You see a company like CoreWeave has a ton of debt, whereas another company may not have a lot of debt. It just depends on how they went and got their compute, and that's the way we're modeling ourselves here.

Okay. That's a helpful caller. And then just with these groups, are the models that they're kind of going with are, you know, hub and spoke in the cities that they're in, or are they eventually looking at putting it in every practice? And then maybe give us, if you give us a sense of how large collectively in terms of number of practices these guys are, that'd be helpful.

Yeah. Great question. Between the two groups that are with us now, I think their footprint is about 450 or more practices nationwide.

Is there the opportunity to get into every one of them at a given time, or is it more likely that it's going to be a handful of them in each MSA or what have you?

That's certainly our goal. We want to put it in every one of those facilities. Some might start off as a hub and spoke. We've got some of the smaller groups that are putting them in every site, but a lot of the larger groups are doing a hub and spoke. But those hubs begin to grow very, very quickly. And so I think that in the long run, as well as the short run, will be putting as many units as we possibly can, and we'll be showing, and they'll be demonstrating the value of those units in every one of those regions if they have practices, because you're going to have patients that are going to start to migrate towards a non-invasive treatment. Okay.

That's more helpful, Carlton. And then lastly for me, on CensusLink, how's that going in a lot of takers thus far?

Absolutely, absolutely.

We see that growing on a monthly basis. Go ahead, Mike.

No, absolutely. CensusLink, again, it's a new form of technology that we've developed for the SRT100 system mainly, but it allows customers to have a Sentinel-type technology that allows them to put all of their patient data along with the machine and pair it with the machine. And it also gives them access to remote radiation oncologists or remote medical physicists if they need it. And so it's something that they're all signing up for. Excellent. Well, thank you for taking the questions. Thank you, Ben.

Once again, if you have a question, please press star, then one. Seeing no additional questions, this concludes our question and answer session. I would like to turn the conference back over to Joe for any closing remarks.

Thank you again. And as you've heard today, we're making good progress and believe we're well positioned to finish the year on a strong note. We have a growing pipeline, an expanding customer base, and a lot of opportunities ahead of us. We're excited about what the future and where the business is headed. We look forward to continuing our conversations with investors in the coming weeks and updating everyone on our progress during our next earnings call. Thank you for joining us today, and I want to wish everyone a very happy Thanksgiving and a very happy and safe holiday season. Thank you.

This concludes today's conference call. You may now disconnect your lines. Thank you for participating and have a pleasant day.