Welcome to the Skyline Medical Third Quarter 2016 Financial Results Conference Call. At this time, all participants are in a listen-only mode. Following management’s prepared remarks, we will hold a Q&A session. [Operator Instructions] As a reminder, this conference is being recorded, Tuesday, November 15, 2016. I would now like to turn the conference over to Kim Golodetz. Please go ahead, ma’am.

Thank you. This is Kim Golodetz with LHA. Thank you all for participating in today’s call. Joining me from Skyline Medical are Dr. Carl Schwartz, Executive Chairman and Peter Alex, Vice President of Sales. We are also joined by Richard Gabriel, the COO of GLG Pharma. Joining us for the Q&A portion of today’s call, we also will have Bob Myers, Chief Financial Officer. Before we begin, I would like to caution that comments made during this conference call by management will contain forward-looking statements regarding the operations and future results of Skyline Medical. I encourage you to review the company’s filings with the Securities and Exchange Commission, including without limitation the company’s Forms 10-K and 10-Q which identify specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements. Factors that may affect the company’s results include, but are not limited to product demand, market acceptance, impact of competitive products and prices, product development, commercialization or technological difficulties, the success or failure of negotiations and trade, legal, social and economic risks. All forward-looking statements speak only as of today’s date, November 15, 2016 and except as required by law, the company assumes no obligation to update these forward-looking statements whether as a result of any information, future events, changed circumstances or otherwise. With that said, I would like to turn the call over to Dr. Carl Schwartz. Carl?

Thank you, Kim and my thanks to each of you for joining us today. Since our successful Special Meeting of Stockholders almost exactly 2 months ago, Kim, my colleagues and I have received questions from many shareholders asking in essence what’s next. During today’s call, my colleagues and I are going to update you on all the work that has been underway of Skyline Medical and discuss our near term and longer term plans. Leading up to that stockholders meeting, Skyline was very active in reaching out to our investors both to tell you why we are so excited about our future and to solicit your votes. As you know, we ultimately receive the votes we needed to pass all three proposals as that would allow us to continue running this company and we do so with renewed energy and optimism. Let me begin the remarks today by extending deepest gratitude to fellow stockholders for voting in favor of our company’s future. I also want to assure you we intend to uphold the same level of transparency in the future as we did leading up to the proxy vote. Rest assured that when we – the Skyline is in a period of relatively quiet, it is not because of a lack of progress, but rather simply a reflection of the process that must proceed tangible results. In terms of our plans and progress, the third quarter in recent weeks have been extremely active as we took a number of decisive steps to support Skyline’s growth and to establish a foundation for highly significant longer term opportunities. Today, I am going to talk briefly about our financial results and then discuss the ways in which we are leveraging the exciting opportunities we have in front of us. From a financial perspective,…

Thanks, Carl. It’s a pleasure to be speaking with all of you today. Short of any successful sales and marketing campaign, our product benefits from strategic vision and we are in a powerful position to succeed with STREAMWAY because it offers tangible benefits to all constituents including healthcare professionals, patients and healthcare facilities. Continued confidence in the STREAMWAY System is reaffirmed by extremely positive industry feedback over the past several months. Today, I am going to update you on my initial 9-point plan for the STREAMWAY System that answer is to you in September in the framework of a comprehensive undertaking for success which includes the following. Current and prospective customers, first, the best customers are current customer and to that end we are looking to expand our install base where we are generally and only a single department now include the institutions entire facility and health system. This also supports our customers’ needs to standardize care system wide and improves purchase economies of scale. Accounts are being quoted and are budgeting for new and additional units in 2017 in both our commercial and VA government sectors. We are in contract negotiations with three of the largest GPOs or group purchasing organizations to get the STREAMWAY on contract which will streamline and accelerate our sales process with current and prospective customers to grow sales in 2017 through 2019. We expect our first set of contracts to begin as early as January 1, 2017. Disposables, STREAMWAY disposables are Skyline Medical’s annuity business and also allows the daily interaction with customers. In fact disposable sales contributed to our year-over-year third quarter revenue increase and we project disposable sales growing as we continue targeting higher volume opportunities and as we develop the expansion of the STREAMWAY platform with GLG Pharma. We are receiving…

Thanks Pete. It’s a pleasure to have the opportunity to speak today to the Skyline Medical’s stockholders. We are all very excited at GLG about our new relationship with Skyline, notably because STREAMWAY Systems will become the platform for GLG diagnostics, cell capturing technologies that we are developing for oncology applications. One of the first opportunities we have identified is ovarian cancer and the collection of ovarian cancer cells as well as the use of markers to identify the state of cancer and the level of metastasis that is evidenced in the ascites fluid. The STREAMWAY system is the only commercial system we at GLG have seen with capability for collection, identification and safe disposal potentially has for this material, all in the operating room. We believe that GLG will be able to help our partnership reach a unique position in the EOR with our combined efforts to expand the utility of STREAMWAY by adding products that will allow oncologists to more accurately treat patients. While improvements in ovarian cancer treatment have increased the 5-year survival rate from 20% to 30% of patients up to 50% today, a lot of work still needs to be done. GLG’s STAT3 diagnostic and other markers plugged into the STREAMWAY system will give OR clinicians near real-time information to stratify patient risk. Ovarian cancer is usually diagnosed, because the patient is expressing pain, discomfort, loss of appetite or other symptoms. And on ultrasound it reveals ascites fluid in the abdomen. Early testing is essential to help diagnose the cancer before it progresses even further. In the future, using the same technologies we will look at other fluid collection, for example, from the lung area, which is usually the result of lung, breast or other cancers. Again, developing the panel of diagnostic tests, cell capture…

I think with those comments, operator, we are ready to take some questions.

[Operator Instructions] Your first question comes from Barry Krosch [ph] with Beck Corporate.

Good afternoon, gentlemen.

Good afternoon.

First of all, congratulations on the sale of two units, the last time we spoke we hadn’t quite got there yet, but in the case of regular time to build the building, so congrats on that. I have a couple of questions for Richard Gabriel.

Sure.

First, I researched on your company online and I had most of the information like it is in Polish and Google Translate just doesn’t it do it for me. How many people does your company employ currently?

There are – well, the number of people, I have got 3 that are coming through this call. There are number of people in Poland. There is a link on the top of page that allows you to convert to English. So, that should be active. So, you can either listen to it in English, I mean, you can either see it in English or you can see it in Polish. The Polish operation has $2.7 million grant and that grant will employ when we are fully operational we just started in November will employ about 12 people in Poland, there is 8 people in the U.S. So, that’s about 20 people total and then our UK operation will once its funded and up and running we will also employ somewhere around 10 people.

So, as the funding comes in, you will be growing I would presume your sales team, because that’s what it sounds like you guys are going to be in charge of here is a lot of the overseas sales?

Well, we are focused on Central Europe starting with Poland and also the UK and the answer is yes.

Okay. And just one other question, would you be able to provide me with the name of your international sales manager, because I can’t find anything on any kind of sales staff that you have, that is just personally for myself and maybe for other stockholders, we like to do all this research on past performance and schooling whatnot see what types of things that they have done in the industry?

Well, the individual to head up to sales, we don’t have the CE Mark yet. So, we have not heard the individual as Peter Alex is for the operation in Europe. As soon as we do we will publicly release that.

Okay, great. I just have one more comment in general for Skyline Medical, you have great plans and I am looking the direction that you are taking have you ever considered possibly doing the 10 minute segment on 60 minutes, because your product in the public line would sell itself?

That’s an interesting point. And the answer is no, I haven’t considered that, but we certainly will do anything to help our oncology cancer patients. We are very patient focused. We would do anything to help Skyline and also promote the integration of the system, because it gets the diagnostic close to the operating room. The closer you can get to the operating room the faster you can get results to the patients and the oncologists and the better off the patients will be. So, that’s the primary drive that we have. That’s why we are so excited about this system. And I might add so we are making on….

I just think is that all you really need now to be really successful is exposure and something like that nationwide on a program like 60 minutes where you have the 10-minute segment and medical professionals will be watching, because that’s what they do and this product would sell itself.

Well, thank you….

Thanks very much for taking my call.

Yes. If I could comment a little further on that, in addition to oncology, I mean, media outlets such as 60 minutes or just broader level media outlets are a great way to get the message out. We do have a significant brand story to tell with our product. There is a ton of passion behind it. Our customers feel it. They feel it from an environmental standpoint. They feel it from an infection control and cross-contamination of their staff. They recognized it from a patient standpoint and facilities and infrastructure people love our product as its actually part of the wall versus more of the mobile solution and it increases footprint. So, thank you for the question and that will definitely complement hopefully your answer.

We have a new President in the U.S. and I think he is going to really like that product. I hope you do very well, because I am heavily invested.

Thank you.

Thanks very much.

Your next question comes from Betty Kendall with Individual Investment.

My questions regard to NASDAQ compliance, I know you have a meeting towards December timeframe that’s what we are looking for? No, since we are at a $1 or actually above $1 for the last 10 days also we can get compliance before that meeting?

This is Bob Myers. I will answer that question for you. The answer to that is no, we cannot necessarily get compliant before that meeting, because it’s a special hearing panel that is independent body of individuals that do not work for NASDAQ and make the decision and they need to see our plan unfolding in front of them along with the fact that we have been above the $1 mark. However, there is possibility that if we satisfy the listing notification for our equity problem that we could possibly avoid the hearing panel and become compliant in advance, the timing is difficult and I don’t see that happening before next month, but we are working to try to do that and we are working very diligently to provide a plan to the hearing panel that will be acceptable. We have hired a top firm in the country, Donohue & Donohue that I was representing this with the hearing panel and I feel very confident that we will be successful.

Thank you.

You are welcome.

[Operator Instructions] Your next question comes from William Klein with Private Investor.

Yes. Good afternoon gentlemen and thank you for the update provided today. My hope is that we get progress report on the EOR contract being fully executed and why it hasn’t progressed past the letter of intent stage that we heard about months ago?

This is Bob Myers and I will take that again if it’s alright and Carl if you wish to amplify you may.

No, go ahead Bob.

Okay. We are in the middle of negotiating with EOR on both – on a number of levels, one, to setup a joint venture that we are looking to do in the future and two, to establish a sales network now where we do a joint selling project to the VA and to their customers based on their contracts. The reason that we have not included that deal is that we are still under the NASDAQ compliancy for the hearing and we need to settle that before we can go ahead and formulate a finalization to the deal. We expect to do that in the middle of December and then therefore you could look to CEO or finalize on what’s sometimes shortly thereafter?

Thank you very much.

Yes.

Your last question comes from Rafael Phase with Private Investor.

Hello. Hi, I just wanted to I guess piggyback off the EOR JV, joint venture in regards to it’s consumption [ph], I know you just said after December 15 we could possibly hear some news, when will contracts via EOR would be announced or when can they be forecasted to have something solidified in regards to that?

That is something we are working on currently and that might occur prior to December, but I can’t answer what I don’t know and that I don’t have a definitive answer on. They have contracts out there for bid and they are working with on a reseller agreement so that we can take advantage of that now. They have already represented us in various hospitals and VAs already and we just haven’t concluded anything at this point. I am sorry that that’s not a direct answer, but it’s the best I can do without finalizing the deal.

Great. And I may if I can piggyback one more time in regards to is the Munro Industries or Enterprises, is that similar to the potential joint venture with EOR, I know this is a veteran disadvantage company and similar concept to EOR, is it something similar in regards to utilizing this company in order to pool in the government contracts they have access to?

It’s similar, but not the same. We have a distribution contract already in existence with Munro that we signed a couple of months ago. They have been actively working as a sole distributor for us in the VA and they are now since October started the cycle for funding for the VA they have been putting out quotes and looking to fulfill orders and hopefully we will get some of those in the fourth quarter or certainly the first quarter. They will complement what is going to go on with EOR and should we conclude with EOR and we will work with both Munro and EOR at that point in time.

Perfect. Thanks so much for the clarification. I am heavily invested as well. Best of luck to you guys and we are definitely pushing for the stock price to blow and put a lot [indiscernible]. Best of luck.

Thank you.

There are no further questions at this time. Please proceed with your presentation or any closing remarks.

So anyway thank you very much. So in closing I want to thank you all for your time today and for your interest in our company. We have a lot of exciting opportunities in front of us which I trust we have conveyed during this call. We look forward to executing on our plan and to keeping you informed of our progress. Have a good day. Thank you.

Ladies and gentlemen, that concludes your conference call for today. We thank you for your participation and ask that you please disconnect your lines.