Hello and welcome to the Already Med Corporation's second quarter of 2026 Financial Results Conference Call. All participants are currently in a listen-only mode. At the end of the call, we will conduct a question and answer session. This call is being recorded today, July the 31st, 2026, and contains time-sensitive, accurate information that is valid only for today. Earlier, AlreadyMed released its financial results for the second quarter of 2026. A copy of this press release announcing the company's earnings is available under the headings news on their website at AlreadyMed.com. A copy of the press release was also furnished to the Securities and Exchange Commission on Form 8K and can be found at SEC.gov. This call is being broadcast live on the company's website at AReadyMed.com, and a replay will be available there for the next 90 days. Some of the information in today's section will constitute forward-looking statements within the meaning of the Private Security Litigation Reform Act of 1995. Forward-looking statements focus on future performance results, plans, and events, and may include the company's expected future results. AReadyMed reminds you that future results may differ materially from these forward-looking statements due to severe risk factors. For a description of the relevant risks and uncertainties that may affect the company's business, please see the risk factors section in the company's most recent reports filed with the Securities and Exchange Commission, which may obtain free from the SEC's website at sec.gov. I want to turn the call over to Roger Soucy, President and Chief Executive Officer of a Ready-Made Corporation. Mr. Soucy.

Thank you, Operator. Good morning and welcome to Eradomid Corp's second quarter 2026 earnings call. This quarter, we embarked on the first general release production of the new 3870 MR IV pump system as planned, targeting, as discussed last quarter, the building of 130 to 135 of these new pumps. I'm very pleased to report that our teams performed exceptionally well and achieved our manufacturing target. No small task. Taking 3870 production from a standing start to an impressive rate in the quarter. With those efforts, we were able to achieve revenue and earnings per our guidance with revenue of $20.5 million and earnings of $0.41 on a GAAP basis and non-GAAP earnings of $0.46 per share. As we expected and guided, the new pump launch consumed significant effort, including increased labor and overhead expenses, much of which is reflected in the quarter's gross margin of 74%. I want to speak to what's next, and that starts with a discussion of how bookings were in the quarter, how fast we could continue to ramp the new 3870 pump production, and a short recap of opportunity. Opportunities for the new 3870 pump system are both the increased penetration of the green fill, which are predominantly those facilities that continue to deal with IV fluid delivery in the MR setting via the various old-school workarounds, expansion of current customer use requiring more pumps, as well as the quite substantial replacement of a Radamid's aged installed base of 3860 pump systems. The most immediate and significant increase coming from the large replacement opportunity. This replacement opportunity will be our key growth driver for the next several years, and was indeed a significant factor for many of the orders booked in the second quarter. Recalling that for the U.S. market, there are approximately 6,400 five-plus-year-old 3860 slash 61 pump channels up for replacement, we had been selling approximately 1,100 such 3860 channels annually. And with the new 3870, we target adding another 1,000 channels per year through replacement sales from those existing 6,400 old 3860 units that are over five years old. Bookings for the quarter were more than double the unit shipped, showing very strong customer acceptance and quick decision making, while only scratching this at the target replacement base mildly. Add to this that not only are we replacing those older two-channel pump systems, but an astounding 70% of those were replaced with our four-channel quad pump system. thus requiring twice the number of pumps. Additionally, the ASP of those quad systems has been north of $110,000, providing well over a 20% lift in the ASP per pump. In short, the demand is exceeding our expectations in both the number of pumps and the ASP. But there's also some fantastic news with our patient monitor. Though the sales team was quite busy obtaining orders for the new 3870, they outperformed themselves and brought in a record high of 71 monitors from the domestic market while maintaining a high ASP. With a strong backlog and the sales potential we have, it comes down to the ramp up of production and the ramp down of costs associated with manufacturing learning curve which we've all been climbing every day. Q2 was a huge effort with plenty of inefficiencies and costs as we went from zero to 130 plus 3870 pumps. Q3 will remain a stretch as we plan to more than double production again to over 300 units. However, we see that we are indeed riding that learning curve well and taming it. So we expect that the startup costs experienced in Q2 will be better than 50% reduced in Q3. while earnings will reflect such a strong positive move as well. This will continue into Q4, by which time we anticipate nearing our historic manufacturing deficiencies. So what's coming in Q3? Let me have Jack Glenn, our CFO, detail this for you, but I will say that as we enter Q3 with a solid backlog of our pump and monitor systems, as well as a strong backlog of FMD systems, we again, however, will be in a controlled production ramp phase. Ramping from 130 to our Q3 production target of over 338, 70 pumps is certainly a very high ramp rate. The team is performing, and we feel confident we will deliver, along with ever more MRI patient monitoring systems as well. Thus you can expect Heratamed to be heading back to and beyond the strong growth rates of the past with expectations that by Q4 and with two early product launch quarters in the rear view, our gross margins will have not only returned but be setting new records which we which fall directly to the bottom line of course. Now I'll turn the call over to Jack Glenn, our CFO, to review the quarter's financial results and provide a deeper color on the growth through the balance of the year.

Thank you, Roger, and good morning, everyone. As in the past, our results are reported on a gap basis and a non-gap basis. You can find a description of our non-gap measures in this morning's earnings release and a reconciliation to gap on the last page. For the three months ended June 30, 2026, revenue was $20.5 million, up 0.5% from $20.4 million in the second quarter of 2025. Pump revenue was in line with our expectations as we transitioned from the 3860 to the next generation 3870 pump. MRI-compatible patient vital signs monitoring systems contributed $6.7 million, up 12% year-over-year, and ferromagnetic detection systems contributed $0.8 million, up 57%. On the recurring side, disposables revenue grew 14% to $4.8 million, driven by continued increases in device utilization. Amortization of extended maintenance agreements grew 28% to $0.8 million, and services and others grew 7% to $1.1 million. Domestic sales were 82% of total revenue in the second quarter compared to 89% a year earlier as domestic 3860 pump revenues were exceptionally strong in Q2 of last year. For the six months, domestic sales accounted for 82% of revenue, down from 86% a year ago. Gross profit for the quarter was $15.2 million with a margin of 74% compared with $16 million and 78% in the second quarter of 2025. The decline in gross margin reflects the higher manufacturing costs associated with our first sizable production ramp of the 3870. For the six months, gross profit was $32 million with a margin of 75% down from 77% a year We expect the gross margin to improve in the second half of the year as 3870 volumes build and manufacturing efficiencies take hold. Total operating expenses for the quarter were $8.8 million, down 4% from $9.2 million, and 43% of revenue compared with 45% a year ago. General and administrative expense was $3.9 million, down 10%, primarily due to lower legal and professional fees, regulatory consulting, and payroll and benefits. Sales and marketing expense was $4.2 million, up 6%, primarily due to higher sales commissions driven by the strong bookings in the quarter. Research and development expense was 0.7 million down 25 percent, primarily reflecting an increase in capitalized internal software development on the next generation monitor in the quarter. Income from operations for the quarter was 6.4 million, or 31 percent of revenue, compared with 6.8 million a year ago. Tax expense for the quarter was $1.7 million with an effective tax rate of 24.2% compared with a 21.2% rate in the second quarter of 2025. The rate differs from the U.S. federal statutory rate primarily due to state income tax expense partially offset by benefits from research and development tax credits. As we stated in our first quarter call, the effective tax rate is also affected by the timing of deductions tied to the windfall deduction for equity grants, which is a discrete item taken at the time of vesting of the equity grants, most of which occur in the fourth quarter of the year. We no longer expect the windfall deduction to be as large as we originally thought and therefore believe the effective tax rate will be likely in the 24% range for the remainder of the year. Net income for the quarter was $5.2 million, or $0.41 per diluted share, compared with 5.8 million or 45 cents per diluted share. Non-GAAP net income was 5.9 million or 46 per diluted share compared with 6.4 million or 49 cents per diluted share, excluding 0.6 million of stock-based compensation expense net of tax benefit. For the six months, net income was 11 million or 86 per diluted share, up 5%, and non-GAAP net income was 12.2 million or 95 cents per diluted share, up 4%. We ended the quarter with cash and cash equivalents of 59.1 million up from 51.2 million at year end. Cash flow from operations was 5.9 million for the quarter and 14.2 million for the six months, an increase of 18% over the first half of last year. Capital expenditures were $0.4 million for the quarter and $0.9 million for the six months, down from $6.7 million in the prior year period, which had included a construction of our new corporate office and manufacturing facility. Non-GAAP free cash flow was $5.5 million for the quarter and $13.3 million for the six months. Also, our board of directors declared a regular quarterly cash dividend of $0.20 per share, payable on August 28, 2026, to stockholders of record as of the close of business on August 14, 2026. And lastly, to repeat our guidance, for the third quarter of 2026, we expect revenue of $23 to $24.5 million, gap-diluted earnings per share of $0.49 to $0.54 and non-GAAP diluted earnings per share of $0.54 to $0.59. For the full year 2026, we reaffirm our guidance and expect revenue of $91 to $96 million, GAAP diluted earnings per share of $1.90 to $2.05, and non-GAAP diluted earnings per share of $2.09 to $2.24. cents. Our non-GAAP earnings per share guidance excludes stock-based compensation expense and net of tax, which we expect to be approximately $2.5 million for the full year. And with that, I will turn the call over to questions. Operator?

Thank you. Ladies and gentlemen, to ask the question, please first start 1-1 on your telephone, then wait for your name to be announced. To withdraw your question, please press start 1-1 again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Frank Takanen with Lake Street Capital Markets. Your line is open.

Hey, great. This is Nelson on for Frank. Good morning, Jack and Roger. I want to start with the 3870 ramp. So you went from zero to 130 plus pumps in Q2 and now we're planning for over 300 in Q3.

I mean, can you talk a little bit more about what that requires operationally and are you adding additional shifts or production head count or does the existing line get you there and does the pace keep stepping up in Q4 or should we kind of or how are you kind of wanting us to think about that oh no we're not you know we kind of did the staffing stuff over the previous several months and you know anticipating you know exactly what we need to meet the demands of making the new pump so we're no longer doing that that's so those expenses you know those those had been in place and that's not where we're going you know it's exactly what I mentioned a few times over it's strictly learning curve it's it's experience it's you know the efficiencies come when when the folks that are making these products basically it becomes sort of second nature muscle memory you know what have you that's the experience I'm talking about so it's a it's at this point cost-wise free but time-wise you know they will have to work overtime to do this learning and you know they're not as efficient as fast hopeful um and then

as your 360 units are you know phasing out what happens how should we think about the service and disposable revenue attached to that in solid base. Maybe just talk through the 3870 quad replacement and your expectations with that for recurring revenue per site as those phase out. Is there any kind of transition gap you're thinking about, or should we not really see anything like that?

Yeah, I can get and take that one maybe. As far as the disposal revenue, you're seeing some nice growth already, right? I think in the quarter had over 14% growth on the disposables. So the 3860 install base continues hopefully on the same kind of utilization. What we're really are excited about and we think will help us even grow that more in the future is the quad stack. Of course, that's what we're seeing, right? That should help this really drive utilization just, you know, as you see, you know, four pumps compared to, you know, two. So we're excited about the opportunity there, I think, in the future on the 3870 the utilization.

And then maybe just last one. If you're a hospital, to say a hospital signs a quad sec order today, when are you kind of expecting that shifts? Are new bookings landing maybe in Q4? Are we pushing into Q1 of next year? Or how is that pointing out? As far as lead time? Yeah, as far as lead time goes.

I think as far as lead time, we're able to right now probably get within, you know, the next quarter kind of thing, probably, or at least in, you know, orders that are coming in film within, you know, three months. Yeah.

So, I mean, you know, our bookings of the new pump were more than double what we shipped. So the backlog is building, and, you know, as we go through the coming quarters, I wasn't quite sure of your question, but as we go through the coming quarters, of course, you know, they'll be what customers experience as the lead time will extend back out to more historic levels, you know, which is, you know, we've had the elite times out in the four- and five-month zone, six-month zone, you know, through much of our history. And we're probably headed there and maybe a little more, frankly, because of the demand of this new system and because of the pleasant surprise of basically selling double the number of pumps with these quad systems.

Perfect. That's helpful. Thank you, guys. Sure.

Good to talk to you.

Thank you. Ladies and gentlemen, I'm showing no further questions in the queue. I would now like to turn the call back over to Roger for closing remarks.

Thank you, Operator. Well, as you heard, with the excellent customer reception of the new 3870 IV pump and continued strong sales of the 3880 patient monitor, along with production experience growing and pushing up our ability to ramp 3870s, our $100 million run rate in Q4 is now well within our grasp. So with that, I'd like to thank you all for joining today's call. I look forward to wrapping production and regaining efficiencies as we capitalize on this huge opportunity before us. Thank you.

Thank you. This concludes the call. You may now disconnect.