David Waldman - Investor Relations Jim Barry - Chief Executive Officer Craig Shore - Chief Financial Officer

Good day, ladies and gentlemen and welcome to the InspireMD Third Quarter 2017 Conference Call and Business Update. [Operator Instructions] At this time, it is my pleasure to turn the floor over to your host, David Waldman. Sir, the floor is yours.

Good morning and thank you for joining InspireMD’s third quarter 2017 business update conference call. On the call with us today is Jim Barry, Chief Executive Officer of InspireMD and Craig Shore, Chief Financial Officer. At the conclusion of today’s prepared remarks, we will open the call for your questions. If anyone has any questions after the call, please contact Crescendo Communications at 212-671-1021. Before we begin, let me take a minute to note that this conference call may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Such information is subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking information. Listeners are cautioned not to place undue reliance on forward-looking information as no assurance can be given after the future results, levels of activity or achievements. With that out of the way, please let me now turn the call over to Jim Barry, CEO. Please go ahead, Jim.

Thanks, David and good morning, everybody. As you recall from our call last quarter, we set our goal to deliver solid growth and today I am pleased to report that the momentum is continuing. For Q3 2017, we achieved a 90% year-over-year increase in the sales of CGuard EPS. It’s also important to note we achieved a 22% sequential increase in CGuard sales versus the second quarter of 2017. We achieved these strong results even though the summer season in Europe tends to be a relatively slow – particularly, Europe tends to be relatively so particularly for devices used in elective procedures. We attribute our success to several factors, but primarily our new distribution strategy, which is clearly working. As an example in Germany, Europe’s biggest market, our new distributor has been able to achieve a 65% increase in sales over the same period last year after just two quarters of distributing CGuard. This was achieved by increasing the number of hospitals since transitioning from our previous distributor. Additionally, our Italian partners continued to expand their client list and currently served 57 hospitals and are adding new ones every quarter. We are especially pleased that they were able to add the Villa Maria Hospital in Cotignola as a new customer. This is significant for two reasons. First, it shows our recent success in the newly entered Italian private hospital sector. Secondly, the Villa Maria Hospital is home to Dr. Alberto Cremonesi and his team who are probably the most experienced and prolific carotid stenting group in Italy and Europe today. The hospital evaluates all the latest technologies and products and recently given Dr. Cremonesi and team’s experience with CGuard, including their experience using CGuard in a live case of the EuroPCR Meeting in May. They have become an important and…

Thanks, Jim. Revenue for the third quarter ended September 30, 2017 was $718,000 compared to $469,000 during the same period in 2016. This was primarily due to an increase in sales of CGuard EPS as we continue to focus on developing existing markets such as Italy expanding into new geographies such as Russia and transitioning from our prior exclusive distribution partner for most of Europe to local distributors. Total operating expenses for the quarter were $2.2 million, an increase of 25% compared to $1.8 million for the same period in 2016. This increase was primarily due to an increase in sales and marketing expenses to support the commercialization of CGuard EPS. Net loss for the quarter ended September 30 totaled $2.1 million or $0.19 per basic and diluted share compared to a net loss of $2 million or $0.85 per basic and diluted share in the same period in 2016. Revenue for the 9 months ended September 30, 2017 was $1,927,000 compared to $1,572,000 during the same period in 2016. This increase was primarily due to an increase in sales of CGuard EPS. Total operating expenses for the 9 months ended September 30, 2017 were $7.2 million compared to $5.7 million for the same period in 2016. This increase was primarily due to an increase in sales and marketing expenses primarily to support the commercialization of CGuard EPS as well as an increase in salary expenses primarily due to a non-cash accrual. Net loss for the 9 months ended September 30, 2017 totaled $6.9 million or $0.87 per basic and diluted share compared to a net loss of $6.2 million or $5.98 per basic and diluted share in the same period of 2016. As of September 30, cash and cash equivalents were $4.8 million compared to $7.5 million as of December 31, 2016. At this point, we would like to open the call up to questions.

Thanks, Julie. In closing, I would just like to reiterate that I am pleased with our Q3 results, a 90% growth in CGuard EPS and continued double-digit sequential growth even our seasonally weak period is validating our strategy. We expect this growth to continue as we add new distributors further penetrate the existing markets, increase usage among new users and new KOLs joining the team to further influence uptake among mainstream physicians in their various regions. As always, we remain laser focused on managing expenses and driving shareholder value. I remain confident we have put the right strategy in place we have the right team and are adding to our partnerships to unlock shareholder value. Thank you again. And I hope you all have a good day.

Thank you. This does conclude today’s teleconference. We thank you for your participation. You may disconnect your lines at this time. Have a great day.