Greetings, and welcome to the MRI Interventions Inc. Fourth Quarter and Full-Year 2013 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded. I will now turn the conference over to your host, Oscar Thomas. Thank you, Mr. Thomas. You may now begin.

Good afternoon. This is Oscar Thomas and I’m the Vice President, Business Affairs for MRI Interventions. With me are Kim Jenkins, our CEO; and David Carlson, our CFO. Before we begin with our prepared comments this afternoon, I want to point out that some statements we make during today’s call will be forward-looking statements. Forward-looking statements by their nature address matters that to different degrees are uncertain and involve risks and they are made based on the current beliefs of MRI Interventions’ management. Uncertainties and risks may cause our actual results and the timing of events to differ materially from those expressed or implied in forward-looking statements, we make today. Detailed information regarding the risks and uncertainties that could affect our actual results and the timing of events are described in the Risk Factor section of the Form 10-Q that we filed with the SEC on November 13, 2013. You can find our SEC filings in the Investors section of our website at mriinterventions.com. With that, I’ll turn the call over to Kim.

Thanks, Oscar, and good afternoon, everyone. Thank you for joining us for our 2013 Q4 and full year earnings call. On behalf of the management team and employees of MRI Interventions, we appreciate your interest in our company. And for those of you who are stockholders, thank you for your support. We’re honored to be working for you in building this great company. David Carlson, our CFO, will walk you through our fourth quarter and full-year numbers in a minute. But before he does that, let me comment that I’m very pleased with our results for the fourth quarter and for the full year. We reached an important milestone in the fourth quarter recording product revenues in excess of $1 million for the first time. We entered the year with over 30 ClearPoint sites. Neurosurgeons use of ClearPoint continues to grow, enabling DBS Lead Placement for movement disorders, laser ablation, for tumors and epilepsy and other uses that include shunt placements and biopsies. We’re pleased that our ongoing involvement in various drug problems, using ClearPoint to deliver drugs, direct neurological targets and we’ve announced a few important developments in the first couple of months in 2014 with particular financing and a significant progression in our relationship with Siemens. Q4 was a great quarter for us. We wrapped the great year building and growing the company. Now I’m going to turn it over to David to review our fourth quarter and full-year numbers. Then I’ll come back to you with some additional comments.

Thanks Kim. We’re pleased to report the results for what we believe was a very strong year. I’ll cover the quarter and then we’ll talk about the full-year results. For the quarter, we recorded product revenues of $1.1 million compared with $339,000 in Q4 of 2012, representing growth of 227%. Disposable product revenues grew to $562,000 in Q4 of 2013 from $308,000 in the fourth quarter of 2012, representing growth of 82%. We recognized $545,000 in product revenue in Q4 of 2013 related to our capital products compared to $31,000 in the Q4 of 2012. Service revenues included development service revenues of $16,000 for Q4 of 2013 and $127,000 for Q4 of 2012. These development services were performed on a contract basis for a third party and the decrease reflects the winding down of the development project we’ve been working on for them. During the fourth quarter of 2013, we recorded other service revenues related to installation services and service agreements totaling $54,000. Q4 of 2012 included recognition of $1.4 million in license fee revenues. These license fee revenues relate to amounts we received previously under our agreements with Boston Scientific. The revenue recognition period for those fees ended in March 2013 and therefore all revenues related to the license fees we received previously were recognized as of the end of the first quarter. Total revenues were $1.2 million for Q4 of 2013 compared with $1.9 million in Q4 of 2012. The decrease simply resulting from the expiration of the revenue recognition period for the Boston Scientific license fees. Gross margin on product revenues was 52% for the fourth quarters of both 2013 and 2012. R&D costs for the fourth quarter of 2013 were $684,000 compared with $735,000 for Q4 of 2012. The primary driver for the decrease related to…

Thanks, David. So Q4 was a great quarter for us, and, in fact, a great year, a year of significant building and significant growth. We ended 2013 as a strong and sturdy company, a company that is revolutionalizing how minimally invasive neurosurgeries performed, a company that is working to bring new therapeutic options to the 2-plus million patients in the U.S. suffering from treatment-resistant neurological diseases, a company that is well-positioned to lead the medtech industry in this growing field. During 2013 we were successful in building value, a durable lasting value in our company and value that will benefit our shareholders. I would like to take a few minutes now to review our accomplishments, by again looking at revenue which we grew significantly throughout the year. As David mentioned, our Q4 product revenues were $1.1 million, our first $1 million quarter, up 227% over Q4 of 2012. We ended the year with $2.9 million in product revenues, which exceeded our guidance and represented 149% increase over product revenues in 2012. We ended 2013 with 31 ClearPoint sites, up over 50% from our customer site total at the end of 2012. As previously mentioned, we are proud to begin 5 of the top 10 neurosurgical hospitals in the United States as ranked by U.S. News & World Report. Our ClearPoint install base is an important and valuable asset to this company. It enables us to reach a growing population patient, it allows us to expand the uses of ClearPoint as more neurosurgeons become familiar with the unique capabilities of the ClearPoint platform, and it constitutes a strategic asset for a company going forward. We ended 2013 with the platform capabilities of ClearPoint firmly established. So why is this important? Since ClearPoint is a platform, our business is not dependent on…

Thank you. (Operator Instructions) Our first question comes from Steve Schwartz from First Analysis.

Good afternoon, gentlemen.

Hi, Steve.

The decline in R&D expense you noted was because of some reduction in software development expense, is that right?

Yes. It really had to do with the timing with some contract development work that we had, that we did in the fourth quarter of 2012. And as Kim mentioned, we actually hired a couple of internal resources during 2013. And so with that support in the development work, it is being done little more evenly throughout the year.

Okay. And that is all connected with the new products that you highlight in the release having come out, is that correct?

Some of it is just related to enhancements that we released in early 2013 that’s with the expenditures in 2012 related to primarily.

Okay.

It is related to ClearPoint enhancements that we are making.

Okay, all right. And then just in terms of more nuts-and-bolts type question from an SG&A expense standpoint, was the fourth quarter number indicative of your current run rate because of the new hires or was just because you were truing up at year end some expenses and so forth?

It should be pretty close to being indicative of a run rate that we ended at the end of 2014.

Okay. And then lastly with respect to the notes offering since it does include warrants, how does that factor diluted share count, is there any impact?

Currently, because we have a net loss in terms of our fully diluted and basic earnings per share, earnings per loss number, it doesn’t have any impact because of the addition of those would be anti-dilutive. But the warrants that are included in this financing, they are priced at a $1.75 and they were intentionally priced at that to prevent any pricing recess on any previously issued warrants.

I see, okay. All right. Thank you.

Sure, Steve.

Thank you. (Operator Instructions) We appear to have no further questions. I will turn the call back over to our speakers for closing comments.

Thank you, moderator and thank you all for your time and attention. We appreciate it. We appreciate your support and we look forward to working with you and growing the company through 2014. Hope everyone has a good evening.

Thank you. This does conclude today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.