Greetings and welcome to the InspireMD First Quarter 2020 Earnings Conference Call. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host Mr. Jeremy Feffer, Investor Relations. Please go ahead sir.

Thank you, Jerry. Good morning, everyone, and thank you for joining us for the InspireMD first quarter 2020 business update conference call. On the line with us today are Marvin Slosman, Chief Executive Officer of InspireMD; and Craig Shore, Chief Financial Officer. We will start with an overview of the company results and our recent highlights and we will then open up your call for questions. 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 can 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. Having addressed that, it's my pleasure to turn the call over to Marvin Slosman. Please go ahead Marvin.

Thank you, Jeremy and thank you all for joining the call and the webcast today. The first quarter of 2020 started with tremendous momentum and great promise only to end with a global challenge no one could have anticipated. Our team rallied and adapted with great poise and unwavering commitment to our customers' needs along with the safety and well-being of our staff. Our team understands that we are more than observers in this global pandemic but a part of a greater health care system serving those who are on the front lines of battling this virus and saving lives. I'm very proud of all and more enthusiastic than ever about the potential of CGuard EPS and its novel MicroNet technology to fundamentally disrupt the current standard of care in carotid artery disease. We look forward to regaining our momentum as elective procedures restart continuing to build on our share position in existing markets with CGuard EPS while planning expansion in growth markets in South America, Asia-Pacific, and of course, the U.S. I also see numerous opportunities for growing our pipeline leveraging new indications for use of CGuard and MicroNet along with our research into proximal protection devices using our reverse flow technology and capabilities. I will spend my time this morning recapping our progress since the beginning of the year and reiterate my vision for the future that were first introduced in the March call. I'd like to take a moment to address a bit more about the ongoing COVID-19 pandemic and its impact on our business. First and foremost, let me say that the health and safety of our employees remains our top priority and we've incorporated all of the procedures and technologies necessary to ensure a seamless transition to an environment where many of our associates are…

Thanks Marvin. For the three months ended March 31, 2020, revenue increased by $619,000 or 149% to $1.034 million from $415,000 during the three months ended March 31, 2019. This increase was predominantly driven by a 158% increase in sales volume of CGuard EPS from $376,000 during the three months ended March 31, 2019 to $971,000 during the three months ended March 31, 2020 mainly due to the company's previous third-party sterilizer equipment failures, which caused a significant interruption in sterilized product supply for the majority of the first quarter 2019, as well as the company's continued focus in expanding revenue base in the company's major markets. In addition, MGuard Prime EPS sales increased from $39,000 during the three months ended March 31, 2019 to $63,000 during the three months ended March 31, 2020 due to the delayed shipments of sterilized products during the three months ended March 31, 2019 as previously mentioned. The company's gross profit for the quarter ended March 31, 2020 was $295,000 compared to a gross loss of $73,000 for the same period in 2019. This increase in gross profit was primarily driven by a higher volume of sales of CGuard EPS less the related material and labor costs and a decrease in write-off of inventory, during the three months ended March 31, 2020, due to the sterilization equipment failures as previously mentioned. Gross margin increased to 28.5% in the first quarter of 2020 from a negative 17.6% for the same period in 2019. Total operating expenses for the quarter, ended March 31, 2020 were $2.316 million, a decrease of 24% compared to $3.057 million for the same period in 2019. This decrease was primarily due to a reduction of $328,000 in clinical expenses associated with CGuard EPS mainly related to the IDE approval process, a decrease of $354,000 due to settlement expenses made to a former service provider pursuant to a settlement agreement during the three months ended March 31, 2019, which did not occur during the three months ended March 31, 2020 as well as $59,000 of miscellaneous expense reductions. Financial income for the quarter ended March 31, 2020 was $43,000 compared to financial expenses of $77,000 for the same period in 2019. This increase in income of $120,000 was predominantly due to changes in exchange rates. Net loss for the fourth quarter of 2020, totaled $1.978 million or $0.43 per basic and diluted share compared to a net loss of $3.207 million with $3.82 per basic and diluted share for the same period in 2019. As of March 31, 2020, cash and cash equivalents were $3.141 million compared to $5.514 million at December 31, 2019. At this point, we'll turn the call over to the operator for questions. Operator?

Great. Thank you. Let me wrap up the call by saying that the entire team at InspireMD has continued to work diligently during these difficult times to continue to deliver on our commitments to addressing patient needs in the highest-quality solution for CAD. We stand ready to respond to the market as well as look forward to normalization for us all. We appreciate all of the exceptional and extraordinary efforts of all who are on the front lines of this battle and stand with you and look forward to better days ahead. In the meantime, be safe and thanks again. This concludes today's conference. You may disconnect your lines at this time and thank you for your participation.