Welcome to the MRI Interventions' Inc. 2017 Second Quarter and Six Months Financial Results Conference Call. [Operator Instructions]. The comments made on this call may include statements that are forward-looking within the meaning of Securities Laws. These forward-looking statements may include without limitation statements related to anticipated industry trends, for company's plans, prospects, and strategies both preliminary and projected; management's expectations, beliefs, estimates, and projections regarding future results of operations. Actual results or trends could differ materially. The company undertakes no obligation to revise forward-looking statements for new information on future events. For more information, please refer to our Annual Report on Form 10-K for the year ended December 31, 2016, which has been filed with the Securities and Exchange Commission, and the company's quarterly report on Form 10-Q for the quarter ended June 30, 2017 that the company will file with SEC on or before August 15, 2017. All the company's filings may be obtained from the SEC or the company's website at www.mriinterventions.com. I would now like to turn the conference over to our host, Mr. Frank Grillo, the CEO. Thank you. You may begin.

Thank you, Jim for the intro. Appreciate that. Thank you and good afternoon everyone. Thanks for joining us for the Q2 2017 earnings call. With me for today's call is Hal Hurwitz, our CFO, and behalf of the management team and employees of MRI Interventions we appreciate your interest in our company and for those of you who are shareholders we thank you for your support. Now in early July we prereleased our strong revenue and record clear point case numbers as we wanted to get the good news out quickly. Also as you know we completed a transformational financing round in May adding significant cash to our balance sheet, enough cash we believe to bridge us to breakeven and beyond in our core neurosurgery business. For today's call we have lots of other good news to share about the business and some of the new initiatives we're working on. Our momentum going into Q3 is strong as the adoption of our technology continues and we're very pleased with our position in progress in the market. We're honoured to be working for you and in building this great company and we're proud that the care patients are receiving as a result of the continued adoption of our products and technology. With that let me turn the call over to Hal for a review of our Q2 2017 financial results and then I will provide further context regarding our progress after Hal. Hal up to you. Thanks.

Thank you, Frank. I will begin with a discussion of our results for the quarter ended June 30, 2017. Total revenues were $2 million for the three months ended June 30, 2017, an increase of $872,000 or 79% compared with $1.1 million for the same period in 2016. This increase was due primarily to an increase in our disposable and reusable product sales. ClearPoint disposable product sales increased $403,000 or 39% to $1.4 million for the three months ended June 30, 2017 compared with $1 million for the same period in 2016. This growth in disposable sales reflected a record 162 ClearPoint procedures performed in the 2017 second quarter. ClearPoint reusable product sales were $457,000 for the three months ended June 30, 2017 compared with $39,000 for the same period in 2016. Reusable products consists primarily of computer hardware and software bearing sales prices that are appreciably higher than those for disposable products and historically have fluctuated from period to period. Gross margins for the three months ended June 30, 2017 was 60% compared to gross margin of 53% for the same period in 2016. The increase in gross margin primarily reflected greater production efficiencies achieved during the three months ended June 30, 2017 due to higher sales and production volumes relative to the same period in 2016. Research and development costs were $1.1 million during the three months ended June 30, 2017 compared to $750,000 during the same period in 2016, an increase of $334,000 or 45%, the increase was due to upfront payments aggregating $522,000 the majority of which was in the form of shares of our common stock required under the previously announced development agreements entered into an April 2017 with the Mayo Clinic and with Acoustic MedSystems, Inc. Accordingly the level of research and development costs…

All right. Thanks Hal. Let me start with a quick perspective on Q2 and then I'll discuss some of the new initiatives we have underway. For the second quarter of '17 we had a great quarter and once again set a number of records for the company, some of the highlights from the quarter include as I mentioned year-over-year [Technical Difficulty] of 79% with a very solid quarter in terms of revenue and we're very pleased to have our internal plan for the first half of the year. We completed 162 procedures in the first quarter which was a new record and it was our ninth quarter in a row of growth in procedure volume. We saw growth in all aspects of our procedures, DBS, laser ablation and biopsies and we continue to work with several drug companies on their current and planned approaches to narrow [ph] drug delivery. We continued to expand our installed base with three capital deals closed and two new evaluation sites added bringing the total to 50 sites in the United States and perhaps most importantly our new account pipeline continues to grow and position us for further success at additional hospitals. We achieved a gross margin of 60% in the second quarter while this is down slightly from Q1 mostly due to a shift in product mix driven by three system sales in Q2, it's up from 53% in Q2 a year ago 2016. This gives a clear sense of the leverage we have in our manufacturing as we grow our volume. We've made steady progress on this throughout the year and there's definitely more room for improvement. Given the 79% sales growth continuously improving gross margins and good operating expense management our use of cash was the best we've seen in many years…

[Operator Instructions]. Our first question comes from the line of Scott Billeadeau of Walrus Partners. Please proceed with your question.

Just a question on what's the sales force look like at this point? You kind of mentioned SG&A is kind of flat, trying to get sense how many guys are they -- how much maturity can they go up the curve and kind of give me a little picture of the current sales force and maybe what you expect it to be 12 months from now that would be helpful. Thanks.

Sure. Thanks for joining the call, Scott. So when people ask about our sales force I always like to first of all do some definitions. So we have a structure where we have four to five sales positions in the United States and these are folks who are going out really with a focus on opening new accounts and getting them up to speed and kind of managing the accounts themselves from a financial point of view and general account manager. We also have clinical specialists and we currently have I think it's nine or 10 of them. In the field who cover cases and are in most of our surgeries, most of the surgeries utilizing our products and that group is the group we've been hiring more aggressively on lately as our procedures continue to build. Over time you know I expect we will not have a huge number of sales reps, the guys that are really driven on new accounts. It's a fairly focused customer base and so you know could we grow that to 10 over the next year or two, yes, that's probably the kind of numbers we're talking about. The clinical specialists however as cases ramp up we ramp up clinical specialists. It's not quite a linear relationship because there's some economies of scale as we build and people spend less time traveling to cases but I would expect that that's a group that could grow to 15, 20, 30 over the next couple years as we continue to grow the number of procedures we're doing. SG&A was flat quarter over quarter, we had some high level turnover and we consolidated a couple of high level positions and hired folks in the field rather than replacing the top level and so we're able to continue to drive a great case coverage and good expense control by doing that.

Great. A follow-up is, is there the specialist and maybe talk about the kind of the different whether it's ablation or diagnostic or deep brain, DBS, is there one place growing faster than the other? Is there some place where we have a bottleneck because we have 9 or 10 guys but there's only four in one of these it's really grown. Any granularity there at all?

You know the key procedures for us now and this has been the case for a while our electrode placement for deep brain stimulation and laser ablation, both of those procedure areas grew nicely this quarter about in lockstep. So we continue to see DBS somewhere between 55% and 60% of our procedures and laser somewhere right around 30% of our procedures and the remaining procedures being split up amongst biopsy, drug delivery and couple other miscellaneous procedures. So we saw a nice growth across both. I think what we'll see over the course of the next two years is we'll see laser grow faster and laser over the last year did not grow as fast the market in general did not grow as fast as we anticipated due to some quality problems and organizational changes at the two companies that market the lasers but I think those are actually behind us in my conversations with those folks and they seem like they're back on track and pretty focused on the market and we're looking forward to seeing that growth as we benefit from it as well.

Great. And is there any different clinical specialists for either our guys basically handling both?

Our goal is to have our clinical specialists trained and familiar with all the types of procedures where our navigation system is utilized and we continue down that path, I do not foresee specialization within our clinical group. I don't think we'll need to do that with the technology -- use of our technology is similar and not across those procedures that we shouldn't need to do that.

[Operator Instructions]. There are no further questions over the audio portion of this conference. I would now like to turn the conference back over to management for closing remarks.

All right. Thank you, Jim. We appreciate the interest of the investors and hope that you sense our excitement about the progress of our company. We had a great Q2 and we expect this momentum to continue. We have added two new exciting potential platforms to our pipeline and we're eager to jump into these programs. We're changing our neurosurgery is done, where it's done, and in some instances what can be done. We are confident of the benefits our technology brings to patient care and we are committed to bringing these benefits to more and more hospitals, surgeons and patients, in the marketplaces responding with growing interest and use of our products. We will be attending a number of conferences this fall as well as conducting Non-Deal Roadshow Outreach. These include a road show in New York and Baltimore and the Southern California investors conference in Orange County later this month and with our new investor relations firm we're lining up three or four conferences for the fall. If you're interest in meeting on these or other events in the future please contact Matt Kreps at Darrow Associates, our investor relations firm using the contact information on our press release. They will work to ensure you are added to our meeting rosters at these upcoming events Thank you everyone and we will keep in touch. Operator?

This concludes today's conference. Thank you for your participation. You may disconnect your lines at this time. Have a wonderful rest of your day.