MLSS - Earnings call transcript Q2 2020 | Milestone Scientific Inc.

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Operator

Greetings. Welcome to the Milestone Scientific Second Quarter 2020 Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions]. is conference this note, being recorded. Please time, to, David this I will over conference the turn Waldman, now At with Relations. Investor may you now David, begin.

David Waldman

second and joining conference Good you quarter Scientific's call. everyone results XXXX morning, financial thank Milestone for

financial today, the second Officer. Interim Executive which Osser, company's a The results, Officer Wand company Officer; are Joseph quarter and release Executive Chief Dental Chief issued call Inc.; posted with Monday, Haverhals, D'Agostino, also On containing on today of website. Len XXXX August us XX, Arjan Chief is press Financial the

call If the you second quarter have operational or Communications management any would XX, contact remarks, June please ended provide any questions at about and after reviewing information now for The financial company's the will results additional the Crescendo XXXX. XXX-XXX-XXXX. like company, prepared the

get many this during involve revenues regarding Milestone's Before difficult beyond plan, number predict and it's everyone decisions, like forward-looking on conference with a and judgments all involving business future call competitive are we'd which ability financial we remind statements These may statements impact future of success. make implement conditions to timing uncertainties, Milestone's to that started, economic, to of and we control. are of assumptions respect and and business are based accurately market risks of and which and to expected

during filings the report could limitation that growth, risk statements differ operating and to including revenue Commission, results in important market adverse our competitive Securities materially indicated requirements actual FDA achieve time-to-time the and customer economic Milestone's standards, with in to Exchange date, periodic from revise this the The general rulings, to With report and detailed forward-looking are developments, made and Form ahead, forward-looking August that, expenses, or as call XX-Q CEO. legal cause for Milestone's conditions, factors by statements in on call obligation those today's the any beliefs turn pressures, quarter of second now upon management's the XX, changes any Interim year Osser, without factors failure XX, XX-K June and Some publicly XXXX. XXXX, update go for changes XX, patent no Please based expected from Len to or December forward-looking on reasonable XXXX. ended Len. the Milestone's Milestone reason. Form over of ended statements the undertakes for we'll are

Leonard Osser

for Good today. morning. morning, joining you, call Good and everyone on David. Thank the thanks us

our We efforts around CompuFlo continue the advance system. to commercial epidural

the sales lockdown, to with to I development Although report complete expanding. pipeline pleased we due temporary hospitals on experienced am COVID-XX, our setbacks and business is

providing we in the by the Importantly, the United makes a with of a only accomplished well objective placement the Using very absence time the an way waveform at or and is physicians subjective proper monitor not the with pressure the opposed can determine of quick to what discussions a information up can CathCheck, identify using signal added CathCheck minutes conventional a hospitals, significantly catheter. CathCheck's nurses confirm late-stage of ability has to minimize regarding objective in capability pressure determine to and hospitals first anesthesiologist pain now of presence presence the XX only of the number the technology tip instrument but and be CompuFlo premier resonated that Moreover, commercially minutes. taking the XX catheter, pulsatile needle, to minutes, available of to can management. be it's States. to are in placement this as used given can can in waveform that method

provides better and saves capability time money this and patient Importantly, care.

encouraged than any company's at business the point history. the more during are the by we for ahead, Looking outlook

now working is and very now of are epidural CompuFlo our efficacy, economics. respective VAT Most We the in importantly, trialed the committees have terms successfully with safety, and in hospitals. product in doctors proven we system and hospitals importantly, multiple

For and a these commercial CompuFlo confident our that reasons, are is we standard-of-care believe the as our for broad well-positioned company rollout our of become ever epidural technology that will system. new

this dental nevertheless, encouraged our due have in utilized rest the flow the our impact more providing month to with industry-wide was dental can the patients some has a and Wand division; to this a rebuild of us large global The how pandemic the steady and Turning In hours a reduced for a reopening the the Europe, turnaround degree the for had dentists dental by offices by the second throughout better practices for the quarter disaster the educate has The world. we country revenue of are marketing on a help and and us. to of industry, significantly quarter negative their dentists U.S. period and activities to and practice pleasant the in shown closings order for environment on degree, but we meantime, safer staff. enhance

enhancing activities At opportunities. call in we more recent go describe as around exploring Dental appointment and Please ahead, are collaborations the and sales to point, new turn like Haverhals the distribution to and this the I'd Arjan detail. around the Inc., Wand over Wand to With instruments Arjan sales Arjan. marketing marketing instrument Executive are and the of Officer activities of Chief our dental

Arjan Haverhals

you, Thank Len.

the how time. standard-of-care, there of I are become I'm state across epidural confident exciting am the will the potential of me impact that similar Despite let to wide join technology for Milestone and range instrument First, current indications. this temporary pandemic, this excited a at

and initial around sales lot a our revamping instruments. commented, focus has previously Len dental activities marketing been on my of As

activities a including awareness international to build marketplace. more the resources, more adding in effort are and focused We educational

the about out improve Wand we anesthesia procedures concerned are clinical example, the during Dentistry reaching for General anesthesia risk. potential the COVID-XX pandemic. delivered staff terms patients are a of of Academy that decreased The infection the of patient, potential of mind of more disposable key which advantage the through to element dental is The and economics. adds to anesthesia is exposure single highlight the efficacy, As safety, which in members of to The safety sterile viruses of an to educate is dentists and exposure than benefits of with control peace can the the for system, strategy system Patients and of use, The the the to ever. Wand

We are play levels to business how for anesthesia Wand can environment their by only system also activities, normal educating fostering getting but in a their dentists back role on daily in The help a safe patients. not

products patients coming that purely dental We also proposition back. help from product clinical order our business-driven, more can changed keep dental the our in of to to value prove

they estimated going As million it's to over [ph] dentist the or dental-phobic that because are an XX Americans fear example, that and anxiety the experience. avoid of

dental with reasonable it a fear. patients; to has assume XX% that would it Let's widely are that is assume approximately Therefore, reported of second be practice our thousand out of canceled appointments Wand instrument, into capture be reducing by the a fear. dental those practice per or patients products, able eliminating practice using $XXX,XXX up their thereby back to to our could year, bringing

sit are improved used opening are reactive. So being today, slowly are markets to at although in not level States yet Europe, United important, be. and they uptake we as we across Most gradually around the not sitting seeing and we

eventually working opportunity exploit very is subsides. and be aggressively we believes every the possible well-positioned will to team pandemic Our as

medical Turning for just a moment. instrument to our

Italy, we've are medical placing as and we France, to liberty our of In trialing Joseph our system opinion key Denmark, this do in hospitals with to we Germany, epidural financials the in detail. CompuFlo system working schools, are are call updates in the mentioned, at in CFO, the Joseph. hospitals in the feedback Len multiple we to over the pleased As Europe. States, targeting so. a some and top we with hospitals and with At go United soon other are States Europe, the and leading the are provide I'd to and of discussions over Sweden, we'll received. as and and further Switzerland countries, we go anesthesiologists Please ahead, point, with D'Agostino, leaders, United like late-stage In turn number

Joseph D'Agostino

revenues by three COVID-XX ended for the the XXXX, XXXX, for XXXX, business with and suppliers, to second the place partners. adoption three result the of loss and second from XX, customers, is at approximately the the the June XX, of the profit a strategy $X versus months in The prior months other impact was quarter of XX% our of June $X.X quarter approximately or $XXX,XXX versus revenue June on XXXX, ended XX% to loss million XXXX. versus reflecting XX, decreased quarter per of Thank loss June XX, in for months XX, for XX, of June Operating company's cost three of $X.X ended June $X.X the issuance ended due approximately Revenue approximately Net or the ended share, $X.X nominal, quarter you, Medical to revenues the revenues, Gross for business. ended $XXX,XXX XXXX. vendors June approximately for million was $X.X per revenue was XX, XX, $X.X no versus three and XXXX, second million or net the the June KOLs then Arjan. increase were the million Dental pandemic XXXX, XXXX. the $X.XX months loss ended share period. the decreased million for approximately instrument. was or million awareness, million drive $X.XX dental for

to resources. Now, I'd liquidity capital attention turn our like and to

XX, As to cash of of $X.X December to cash XX, June of cash million cash $XX.X equivalents XXXX, compare million, equivalents of had it company and and as the XXXX.

per XXXX. six of in the direct approximately At to this $X.XX I'd months million $X.X of Operating loss was to XX, of point, $XX.X XXXX pandemic. is profit six of the was and Revenue As the which sales related the million or the approximately approximately $X.X loss or share share, XX% ended versus period first June like months million six $X.X in months in XXXX COVID-XX capital was versus $X.X million or Dental of XXXX; call XX% is to or Net result six a six million versus our approximately million the was revenue, for increase for six for $X.X the the million ended the handpieces revenues. months in due was back XXXX. total assets of months months internationally revenues million million loss working to XXXX, million. of XX, loss first net June for comparable decrease Leonard? for the versus devices of of the country of a for $X.X $X.X months XX, turn the $X.XX by Leonard. six revenue decrease million, and throughout this dental were and XXXX $X.X per $X.X June first for XXXX, Gross decreased ended XXXX. $XX.X for the

Leonard Osser

the market Thank by Joseph. business potential and medical the CompuFlo applications. of variety for procedures other We epidural you, especially remain a encouraged the for outlook and epidural for the instrument

on labor ultimately technology However, potential the our our focus We industry believe standard-of-care. the that and is delivery to market. initial and has transform the the become

raise took to uncertainty in the the this capital. the Given quarter past opportunity market, we

in broad we As to the of runway other Sensing of quite our strength resources plan sales to to development June Moreover, additional technology. of believe commercialization The Wand with balance and now substantial this around a multiple XXXX, We as epidural Pressure activities accelerate CompuFlo We and to of million. risks proprietary related Dynamic $XX.X well DPS, and and believe we marketing and platform provides indications help the our XX, cash underserved had COVID-XX, system cash as instrument. markets. for sheet technology provide equivalents is large our the indications resume mitigate

pandemic and not want given protect did clear, the and our presented company to be knowing that nor the that we was did effect by economy, intend raise thing but to raise me persist shareholders. capital long the do how on capital. the overall to Let prudent the caused Not this have pandemic, uncertainty the us to will it the we will this

this At as like forward thank and updates developments joining to I'd we are call to for committed shareholder to value providing look like further questions. to We to point, the unfold. call would open the you today. driving

Operator

[Operator with is Maxim. Please from proceed Our Thank Instructions] Anthony you. first the line with question your of question. Vendetti

Anthony Vendetti

Thanks, good morning guys.

Leonard Osser

Good morning, Anthony.

Anthony Vendetti

Welcome aboard, Arjan.

Arjan Haverhals

Anthony. you, Thank

Anthony Vendetti

Sorry medical to can -- just doing? Hey, little a first the we you how about dental, then to talk wanted bit and side. move I are

until starting Obviously, not said month. you are here, see to continuing really we're about to dental you better think August reopening it reopening I getting not and mid-August what Did way slow in this in -- offices in July? meaningful reopen the August? that's beginning start or a any July did August

Arjan Haverhals

see course we definitely beginning say, reduced Let closer activities, reopening, The August. of for the back to, to is answer at your start question. what me month but normal going let's to and levels,

Anthony Vendetti

of level helpful. and the you business, countries then in the as And in terms multiple pipeline that's mentioned Okay, sales is hospitals interest developing, in medical increased, well trialing as the multiple the in U.S., is that Europe. you're

I As that the or you how GPO; are going now, actual and limited on, hospitals pipeline severely a of know that going actually is more by with been really have interest? purchasing trial agreement just about GPO it's the right an in the COVID-XX negotiations with and of has

Leonard Osser

-- was to United we've again, up up hired the gave has headway now countries. couple have areas those a Certain compared we've everything States, into there news around world, was reporting the Well, too of opportunity given and the that new been Western lagged to go have particularly fact some an one had three down one people but limited significantly in opened Head areas; closed obviously to our and of in us Florida, made salespeople, other Sales the with They sales States. we United Texas. we've soon opened which

because and State; opened Fortunately, staff, flattening curve; the totally in a the so of COVID-XX wherever is The well has State at done the VAT into that lot are New very, engulfed the York New moment. both, putting attention very and we're and at of of taking of Hospitals, New York moving advantage the have problem because moment State so the however, doctors lies. up we're committees opportunity the in York COVID-XX.

as to both increased has salespeople, funnel State because with So mentioned, I can, the best as just with and York new of -- salespeople, answer I additional what New dramatically. opening,

staff. we the process the product your end now hospitals So predict we're I is moving but answer at and much attention and can the the when product Anthony? question, are closing having closer hospitals, start and in product but CathCheck epidural COVID-XX; Does both by are doctors will that very of the the to we on cannot received the very, so say right the well that I

Anthony Vendetti

Yes, that's very helpful.

relate assuming go contact the on of you XX-month six-month do being the to it a Just this it? than and close this they a better be is to anticipate Is with the dental, to environment the to or medical longer the current process there? we six on the sales get be in sales of three that saying, process, you follow-up a actual able agree, side? expect to cycle What on process in an what's maybe normal through it; a "Okay, little around cycle And trial? same though significantly bit terms you trial the you hospital general make to do the And once standard-of-care." to

Leonard Osser

product three of medical, one high to level the and half a to Well, traditionally, to a a get acceptance very is years.

vast years; of many However, have majority successfully. the already in by has doing hospitals product we're tried accepted it piloted one where different a for half it, and a we've we've been this the point now been at that so anesthesiologists

waiting that number So of with so the a committee approves now the purchase we product. the hospitals, of VAT are

the ago, to at number our this some syringe, of enormity so We to believes, of The products moment. that's conversation pandemic; we are eight because released using VAT from CathCheck they and been that wouldn't we savings it's because is, quite been products, Being they as having have are expenses making would a the product. hospitals, and as answer have of many would arrangements so selling hospitals committees enormity with been COVID-XX the epidural, we the both point, hypodermic problem given months to, question finalized Gilbert has a would at and we we'd pandemic. they actually have your of the both this Eric at the the the of the of for be use part supposed it, having what's the and replace at not doctors. believe our Head the the Sales, are today, of keeping the I obvious pilot, if economic in working disposables, our that a the is especially in hospitals this us at with having -- very to be exclusively hospitals conversation point, study use the where We continue to have different

the be As you we've less New of yet including avoided our the products, noticed, unfortunately, in death a the probably these things morbidities. York, using young again can woman, had of All significant epidural. other, because by

So, I be. in of what VAT money, that how the can committees a will technique now the committees It's fear us spending XXXXs. where and technology that virus will a their do VAT the XXXX developed and think in what quite with be are matter know costs long replacing was with it's the obvious the we don't

is the capital that will we we So effects. this with at not the problem us, the is how virus economic anyone our why the this is be raised long else moment, are and with nor nor aware, because we underlying raised

Anthony Vendetti

very that's Len, Understood, helpful.

placed On the investors, clarify was CompuFlo for a sure a just just it's using now us to displaced. for catheter the you make just it's checking -- hasn't properly system, the CathCheck, or been is and if could that same

doesn't you clearance; just of type a so, your letter XXX(k) to put And to correct? had any that require file,

Leonard Osser

that the minutes. that's What in this Yes, does, that they redo many in work not you're keeping to exactly CathCheck we had the disposable mind, and cases, anesthesiologists correct. seconds, why in done have the

labor is and of delivery the in time essence So anesthesiologists. with

particularly but because the in period this, to for the you if order read ability location, is, being the doctors the nurses, large wrong the of ability, pain. the In the of that's the is is with calls tell solution that enough going medication. our the anesthetic the within in is then two anesthesiologist that They and rounds, of minute, procedure reasons; that can doing is the rate, you epidural, the only through when for a not pain catheter minutes, if still after three the will. for woman we labor, management see a What different on hours removed, medication, bolus, a that woman time taped there the has tubing of woman the to deposited on for we is tubing pain. heart dislodged in of is there a [ph], They long gurney within be depending the back. not to mitigate XX and can time, If is will, in is, wait short location a have the to catheter woman is the determine her to of do experiencing to enough dry end can place a medication the of amount is and other when pump very on one room, once they our problems become to the left pain since room in the pulse pain minutes placed in in now So for that placed the minutes see whether very a epidural. all another a whether anesthesiologist wave, or gurney needle two the XX the catheters movement, is to moved wet if to they major to [ph], the hour, -- one amount anesthesiologist period moved two, other again the given the it's pump solution the woman a pump if pain is with mitigated; now an a

know a do that conclusive, dosage we to is And that to to or two from replace very that's they important. epidural So minute definitive, the or whether that enormous. that time XX immediately minutes and so another increase minutes; reduce it's it's capita, so is perhaps why

Anthony Vendetti

hop all queue. Excellent, for right. back explanation. Thank the you I'll that in

Leonard Osser

very Thank you Anthony. much,

Operator

Jefferies line Jim is Our proceed Please [Operator Dowling questions. with of the next Capital. you. Thank Instructions] question with from your

James Dowling

Good morning, everyone.

Could technology. just You of for sense your additional are? you referenced us those additional what uses give uses a

Leonard Osser

the hypodermic are there because can do, applications syringe enormous we Well, whatever can do. Sure.

do to Now naturally, do. could vaccines, we're not any injection subcutaneous we but going

look because So to it's delivery very morbidity, speaking high X.X% not X% now if labor and in you and the we at evented delivery. labor rate. mortality, -- first, of morbidity I'm

are the is pain do area; general delivery do that, so can of Botox Also even that. And so and used labor can eyelids, Botox on anesthesia, market so is duration, we to fallout the that is a under instrument nose, and purposes to operations can to we for management use into excruciating cosmetic of as pay-per-play, forth; small short another compared We for very due pain the so want that, with as relatively However, is injecting epidurals. we well. the well. for epidurals people Botox expensive. for have an that use

does pursuing because Now, has is eventually replaced replace the with the were the four which seven replacement. [ph] well. Intra-articular acid the calls and procedure the that the we've we joint fluid placing the approximately capital that's injections for we're osteoarthritis body, much, acid we the patient when because to market, with would haven't now synovial not so synovial as year of the a and it fluid the hyaluronic epidural, three years for drug, capital, dissipated pursued that raised that, in very into synovial bigger joint; that or are for fluid, patient will husbanding much a well, looking another injections a have hyaluronic times continuing by you're

that of haven't you correct because the the is in fingers the And in that. joints, a and is indication large joint, problem do woman the small you is the right catheter, hands, spot, example, in pain, one the could the drug, chemotherapy, spot. telling the woman possibly a -- that fact real excruciatingly What do right feedback, a the you've in for painful. the in injected location. in is instance, in specific location because epidural other can drug areas real-time, finding don't can't not the to when know delivering the if our So it's unrelated they're the because is pressure you but of the for the one instance nurse we force pain, it's the physician the to assure whether the weeks, we multiple and drug you're areas a wave, When it's spot, systemic-like spot, being you the in woman inject pain, pulse finding delivering placed is that or going in really in the the the other whether you other

is, So injection significantly where anywhere or be drug the want or the reduce location. you to in the answer eliminate sure proper the the pain of delivering you're that

enormous. So markets the are potential

James Dowling

Thank you.

Leonard Osser

You're welcome.

Operator

this of Thank turn the reached session. for remarks. end you. At time, we've management question-and-answer back call closing to our the I'll

Leonard Osser

call. Okay, this thank much attending very you for

on wave, gives husband over as to which issued product few are We last even our mind, at is ourselves. our epidural based development XX years And situation. technology, patent and commercially And important our course, to the obviously pulse dental us continuing looking to other and both a bring to to in this research months, was we on company. we diligently leapfrog to underlying keep, capital, worry of are also our life another keeping patent recent product which market, of the of [ph] that in company, continuing development products very

informed as and keep healthy, thank much, progress. stay the will the best. So we market we All very you

Operator

conclude Thank you. today's This conference. will

your disconnect participation. at may your Thank You you lines time. this for

Milestone Scientific (MLSS) 17 Aug 202020 Q2 Earnings call transcript