Good afternoon and welcome to the Census Healthcare Fourth Quarter and Full Year 2025 Financial Results Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. 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. To withdraw your question, please press star then 2. Please note this event is being recorded. I would now like to turn the conference over to Terth Patel with Alliance Advisors IR. Please go ahead.

Good afternoon. This is Terth Patel with Alliance Advisors IR. Thank you all for joining today's call to discuss Census Healthcare's fourth quarter and full year 2025 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 census health care 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 upon currently available information as of the date of this conference call, February 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. Census believes these measures provide useful information for investors, yet they should not be considered as a substitute for GAAP, nor should they be viewed as a substitute for operating results determined in accordance with GAAP. A reconciliation of non-GAAP-to-GAAP results is included in today's press release. With that, I'd like to turn the call over to Joe Sardano. Joe?

Thank you, Terrence, and good afternoon, everyone. Thank you for joining us today. Let me start by providing some context around our end-of-year activities and the wonderful news received from CMS. SRT and IGSRT are non-invasive technology that was exclusively designed, developed, and distributed by Census Healthcare. Our SRT technology has been awarded exclusive and dedicated CPT codes that provide physicians unequivocable and clear reimbursement for treating patients with non-melanoma skin cancer. Let's be reminded that the American Academy of Dermatology states that one in five people in America will have skin cancer. After 16 years of relentless pursuit, these codes provide census with a fresh start, a clear path forward for physicians and patients who continuously seek a non-invasive alternative the scarring and the lengthy healing times caused by surgery. This demand for a non-surgical choice is clearly becoming an increasingly popular choice of patients as they learn of their treatment options as the Medicare statistics have indicated over the past several years. We begin in 2026 with new codes. $22 million in cash on hand, zero debt, and a motivated sales force that we intend to expand during the course of Q1. As we continue to educate the physicians of these new reimbursement codes, we feel that adoption will grow steadily and continuously for years to come. You will notice that the 14 units we shipped in the quarter did not include any sales to our very large customer. Although we believe they will continue to contribute to our business in the future, our growth will come from direct sales and shared services with the end users. We will no longer have to rely on any one entity. We also expect that our international business will continue to grow along with our primary U.S. market. For quite some time, two factors have weighed heavily on our business, customer concentration and the absence of reimbursement codes dedicated specifically to our technology. With CPT codes for our SRT and IGSRT technology to treat non-melanoma skin cancer now being used and with a more diversified customer base emerging, both of these factors have been addressed. Turning to our fair deal agreement program, this continues to be an important strategic component of our business. We ended the year with 18 active FDA sites and 10 additional sites pending activation. More importantly, utilization across the program increased substantially year over year. During 2025, treatments were up more than eightfold versus 2024, and the number of patients treated increased by more than 250%. While the market was awaiting news from CMS regarding the codes, we responsibly advised our prospects and customers to place a hold on moving forward until the new codes were made public. All of our customers appreciated the honesty of us informing them of these developments. While the broader market was awaiting reimbursement clarity, in several cases, FDA placements have served as a bridge to ownership, with customers electing to purchase systems outright once they did the math on purchase economics. International demand was strong in the fourth quarter as we shipped six systems internationally, including shipments to China. International sales continues to be attractive for a margin perspective due to lower installation, commissioning, and servicing requirements, and we expect international markets to remain an important part of our growth strategy. Looking ahead, we are encouraged by early activity in the first quarter of 2026. Based on our current pipeline and customer engagement, we expect first quarter system shipments to exceed fourth quarter levels, even without any contribution from our historically largest customer. More broadly, 2026 represents a fundamentally different operating environment for Census Healthcare. With reimbursements certainly now established, a more diversified customer base, and expanding international opportunities, our objective is to achieve full-year profitability in 2026. With that, I'll turn the call over to Michael to discuss our strategic initiatives and commercial outlook in more detail.

Thanks, Joe. I'll focus on how our commercial model is evolving and how these changes position census for sustained growth in 2026 and beyond. Reimbursement certainty and highly attractive economics have expanded adoption pathways for SRT. Small and mid-sized practices are increasingly evaluating outright purchases and fair market value leases driven by rapid break-even, flexible financing structures, and tax considerations. Customers now have multiple ways to adopt our technology, and we are able to support fair deal agreements, ownership, renting, or leasing, depending on practice needs. Internationally, momentum continues to build. In addition to ongoing demand in China, we expect more diversification due to the opportunity created by our MD-SAP certification. International markets provide both growth and margin benefits and remain an important component of our long-term strategy. Taken together, these developments position Census to scale more efficiently with improved visibility, stronger economics, and a broader set of monetization levers than at any point in the company's history. From a commercial perspective, we are taking a deliberate and disciplined approach to scaling our sales organization in 2026. We have already added one new sales representative and plan to hire an additional three to five reps as soon as possible. This expansion is focused on increasing market education and accelerating lead conversions as customers work through the reimbursement framework and evaluate the most attractive acquisition model for their practices. In parallel, we have refined our trade show and conference strategy for 2026. Compared to prior years, we are placing greater emphasis on select national and regional meetings that consistently generate high-quality leads and decision-maker engagement, while reducing participation in lower-yield events. This more targeted approach allows us to concentrate resources on forms where purchasing decisions are actively being evaluated and where reimbursement clarity is now translating into actionable demand. Overall, due to the new CMS codes, Census is able to make these adjustments that allow for a more focused and efficient commercial model that balances an expanded market presence with operational discipline and positions us to efficiently convert interest into system placements as the year progresses. I'll now turn the call over to Javier for a review of our financial performance.

Thank you, Michael, and good afternoon, everyone. I will review our financial performance for the fourth quarter and full year ended December 31, 2025, starting with our fourth quarter results. Revenues for the fourth quarter of 2025 were $4.9 million, compared with $31 million in the fourth quarter of 2024. The decrease was primarily driven by a lower number of units sold, reflecting reduced sales to our largest customer, slightly offset by revenue recognized from new placements under the Our Federal Deal Agreement Program. Cups of sales for the fourth quarter were $3 million, compared to $6 million the prior year quarter. The decrease was primarily related to a lower number of units sold offset by higher cost of service and costs associated with placement under the FDA program. Gross profit for the fourth quarter was $1.9 million, or 38.8% of revenues, compared with $7.1 million, or 54.2% of revenues, in the fourth quarter of 2024. These decreases were primarily driven by lower sales, higher cost of servicing system, and costs associated with the new placements under the FBA program. General and administrative expenses for the fourth quarter were $1.8 million compared with $2.4 million in the prior year quarter. The decrease was primarily due to lower professional fees and compensation costs. Selling and marketing expenses were $1.4 million for the fourth quarter, remaining consistent with the prior year quarter. Precious and development expenses for the fourth quarter were $1.9 million compared with $1.6 million in a pro-year quarter. The increase was primarily due to higher product development costs related to the next generation systems. Our income net was $0.2 million, remaining consistent with pro-year quarter. Net loss for the fourth quarter of 2025 was $3.2 million or a loss of $0.19 per share compared with a net income of $1.5 million or $0.09 per deluded share for the fourth quarter of 2024. Adjusted EBITDA for the fourth quarter was negative $3 million compared with $1.9 million in the fourth quarter of 2024. The decline reflects the net loss in the current quarter compared to net income in the prior year period. Turning to our full-year results. Revenues for 2025 were $27.5 million, compared with $41.8 million in 2024. The decrease was primarily driven by a lower number of units sold, reflecting reduced sales to our largest customer, slightly offset by revenue recognized from new placements under the FDA program. Costs of sales for the year were $15.6 million, compared with $17.4 million in 2024. The decrease was primarily related to lower unit volumes, partially assessed by higher cost of service and costs associated with the new placement under the FDA program. Gross profit for 2025 was $11.9 million, or 43.3% of revenues, compared with $24.4 million, or 58.4% of revenues in the prior year. The decrease were primarily driven by lower sales volumes, higher servicing costs, and SDA program-related expenses. General and administrative expenses for the year were $7.9 million, compared with $7.1 million in 2024. The increase was primarily due to higher professional fees, insurance costs, and compensation. Setting and marketing expenses for 2025 were $6.5 million, compared with $5 million in 2024. The increase was primarily driven by high threshold costs and increased payroll expenses associated with higher headcount. Reaches on development expenses for the year were $7.8 million compared with $4.2 million in 2024. The increase was primarily due to significantly loving costs related to billing co-reinbursement efforts in 2025, as well as increased headcount and higher product development costs related to the next generation systems. Other income net was $0.7 million for 2025, compared with $0.9 million in 2024, related primarily to interest income. The debt loss for 2025 was $7.7 million, or a loss of $0.47 per share, compared with net income in 2024 of $6.6 million, or $0.41 per deluded share. Adjusted EBITDA for 2025 was negative $9.6 million, compared with $8.7 million in 2024. We ended the year with $22.1 million in cash and cash equivalents, unchanged from the year-end 2024, and no outstanding borrowings under our revolving line of credit. We're delighted to have such a strong, clean balance sheet as we enter 2026. Repaid inventory was $1.5 million at year-end, compared with $3.3 million at December 31, 2024. Inventories total of $14.6 million compared with $10.1 million in the prior year, reflecting inventory bills in support of anticipated future demand. And lastly, as Joe mentioned, we expect Q1 revenues to exceed Q4 revenues, and we look to be profitable for full year 2026. With that, I'll turn the card back to Joe.

Thank you, Javier and Michael, for those updates. Before we open the call for questions, I want to reiterate that Census is entering 2026 with greater clarity, better control over our business, strong customer economics, and more commercial flexibility than at any point in the company's history. The new dedicated CPT codes for superficial radiotherapy significantly improve physician reimbursement and support broader adoption of our technology while benefiting patients with certainty of coverage for a non-invasive treatment option. Combined with a more diversified customer base, our expanding international opportunities, we believe Census is well-positioned to deliver stronger and more predictable growth and improved operating leverage. We appreciate your continued support, and we look forward to reporting our progress throughout 2026. Thank you for joining us today, and now we'd be happy to take your questions. Operator?

We will now begin the question and answer session. To ask a question, you may press star then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then 2. Again, it is star then 1 to ask a question. At this time, we will pause momentarily to assemble our roster. The first question comes from Anthony Vendetti with Maxim Group. Please go ahead.

Thank you. Hey, Joe. Hey, Michael. How's it going, Javier?

Hey, how are you?

Good. So I wanted to talk, so obviously this is, you know, major positive news. with the new schedule started 1-1-26, 300% per fraction increase. And you did ship 14, eight in the U.S., six internationally, as you said, none to the largest customer. In your guidance of growth, sequential growth in the first quarter, revenue growth, does that assume nothing from the largest customer? And as you think about 2026, are you expecting any orders from them, or should we look at any orders from the largest customer in any quarter in 26 as I've said? Thanks.

Thanks, Anthony. That's a good question. And as we put together our model for 2026 based on the new CPT codes, we made sure that we didn't include any expectations from our biggest customer because of the fact that they have to really reevaluate their model moving ahead. So we didn't know what they were going to do or how they were going to do it, but everything that we're going to be projecting for 2026 excludes them for the moment. And if there's anything that they can contribute, we'll only make it better for us. So we're looking forward to 2026. We look forward to working with them in 2026 if that allows us, if the circumstances allow us to work together. But if not, we're very, very comfortable moving ahead with these CPT codes because it's a major, major impact for us.

Okay. And in terms of TDI, do you have any update on that and where that's at? And do you expect to get FDA approval for that product sometime in 26?

Yeah, TDI has been a long, tenuous program for us, and we're working closely with the FDA and continuing to work through this situation that they seem to lack an understanding. And so I don't know when that's going to happen, but we're going to continue to pursue it wherever we possibly can and see what we might be able to come up with. But it's an interesting dilemma right now for the FDA, and we'll continue to pursue. Okay.

And then maybe on the international front, can you talk about the demand outlook internationally in any particular country that would, you know, be a positive in 26 or any concerns?

internationally in 26? Yeah, great question, Anthony. I think I'll take that one. So obviously, China has been our bread and butter internationally for years. That still is the case. They're obviously the largest country outside of the United States to purchase something like this. In addition to that, I've seen firsthand Taiwan and how that's been growing. We have four or five installations there now over the last two years. Asia in general continues to adopt SRT technology. I know that South Korea is coming in. Japan eventually will trickle in with our MD-SAP certification now. As soon as we get through all of the secondary regulatory hurdles from the MD-SAP, you'll start to see SRT coming in. But I know that there's tons of demand from Asia due to the keloid market. And additionally, we're holding out hopes for the Middle East as well. That's starting to trickle in. And then India, and then, of course, South America, Brazil, where we're still working right now on our regulatory, the secondary regulatory. And we expect to get Brazil clearance this year. So we're very excited to finally take a step

into South America as well. Okay. Yeah. Historically, obviously, I think Brazil is a pretty large market. Okay, good. I appreciate all that color. I'll hop back in the queue.

Thanks, Anthony.

The next question comes from Ben Hainer with Lake Street Capital Markets. Please go ahead. Good afternoon, gentlemen. Thanks for taking the questions.

Hey, Ben.

How are you doing?

I'm doing great. Living the dream. So, just to start off for me, you know, any more color you can kind of add to the reaction that folks have had to reimbursement in terms of what you think it does to system mix, you know, SRT versus IGSRT, and then also kind of FDA versus sale versus other financing options?

Good question, Ben. And I think that we're going to see a couple of tendencies shift here. Number one, the FDA still remains a priority for all of the private equity-backed roll-up groups because that's just the way they would prefer to do business. However, they still are contemplating how they want to get into the market considering whether it's a fair deal agreement, which is a shared service program, or if they want to enter into some kind of a leasing program, which we'll be able to provide them. Clearly, on the single customers, the customers that I would say are anywhere between 1 to 20 centers, the smaller centers, which is, quite frankly, what our bigger customer was working with, we're seeing a much stronger influence regarding the actual purchase of the equipment or actually going to a lease. With the reimbursements as they are and with the reimbursements guaranteed as they are, they're not in the tendency of wanting to share revenue. They want it all, and I don't blame them, especially the bigger users. They're going to want to keep all the money and be more reluctant to split the volumes with anybody. okay and then when it comes to the product mix the product mix uh because there is uh you know we still have an opportunity on the ultrasound side even though there's only one code that reimburses for the ultrasound uh but we see more of a tendency to work with the srt100 product and the customer acquiring a handheld ultrasound device to give them the one code that they're going to have reimbursement for. So it's a cost saving for the customer overall, and quite frankly, it's much better margin for us as well. Okay, got it.

And then just any change to the level of interest that you've seen from the private equity-backed groups, just given more certainty for reimbursement going forward?

We've talked to pretty much all of them, and they're very seriously reevaluating how they want to acquire it, and we're seeing more interest in some of the other groups that weren't necessarily involved in looking at the device or skin cancer. But now it's hard to say, but quite frankly, on average. The reimbursement that we're getting from the CPT codes that we've been given actually pays more than post-certs.

The demand across the board, just to add color to Joe, the demand across the board is more clear. People have in general in the past with gray area type codes have always been on the fence or not and then they wait and they wait. Now it's black and white coding. It's a much easier environment to work with, with black and white coding, and it's just a matter of us getting the loudspeaker out there and getting that out there to make sure that everyone understands that going forward. And we haven't had enough time to do that yet. It just started January 1, 2026, and Q4, which we're announcing right now, obviously had the leftovers of how we were built in general with the old world. Now it's kind of like a brand new company again. And we can push from there. And we already have the inventory paid for and

no debt. Got it. And then on Sentinel 2.0, how's that coming along? And then remind me, is that something that you guys are going to keep for yourself with the FDA program or maybe

leasing or does that get rolled out more broadly? I think we're looking at a more broad rollout for it, and I think that we'll see these things rolling out in the near future. So it's exciting for us. It's coming out at the right time, and so you'll hear more about it in the future. Got it.

And then lastly, on service revenue, how do you see that this year? I know that obviously the former largest customer has quite a few units out there that will need service at some point. What's the right way to kind of think about that line?

So service revenue still is like 10% of the total revenue for the company.

You don't see that. So no change there? Can it pass?

No, no, no change.

Great. Well, thanks very much, gentlemen. Thanks, Ben.

Those are all the questions we have for today. I would like to turn the conference back over to Joe Sardano for any closing remarks.

Well, I'd like to thank everyone for joining us today, and we look forward to updating you on our progress in the quarters ahead. If you have additional questions following today's call, please feel free to reach out to our investor relations team. Thank you again for your time and continued support of Census Healthcare.

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