Brian Dow - Senior Vice President and Chief Financial Officer Darrin Uecker - President and Chief Executive Officer Bob Duggan - Chairman of our Board of Directors

Good afternoon. My name is Julie and I will be your conference operator today. At this time, I would like to welcome everyone to the Pulse Biosciences Investor Update Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session [Operator Instructions]. Thank you. Mr. Brian Dow, Pulse Biosciences Senior Vice President and Chief Financial Officer you may begin.

Thank, you and good afternoon, everyone. And welcome to Pulse Biosciences quarterly investor update call. On the call with me today are Darrin Uecker, our President and Chief Executive Officer and Bob Duggan, the Chairman of our Board of Directors. Before we begin, I would like to remind you that on today’s call, we will be making forward-looking statements. These include statements regarding our plans and expectations relating to our operational, scientific, clinical and financial projections, products including the uses and applications of such products and other future events. You should not place undue reliance on such forward-looking statements, which are subject to a number of assumptions, risks and uncertainties, and may differ materially from actual results. These results and uncertainties are more fully described in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K and quarterly report on Form 10-Q. Investors are encouraged to reference these risk and uncertainties and other disclosures in those reports. Pulse Biosciences undertakes no obligation to update forward-looking statements as a result of new information or future events. In addition, please note that today’s call is being recorded and will be available for audio replay on the Investors section of our Web site at www.pulsebiosciences.com, shortly after the conclusion of this call. Investors electing to use the audio replay are cautioned that forward-looking statements made on today’s call may differ or change materially after the completion of the live call. I would now like to turn the call over to our President and Chief Executive Officer, Darrin Uecker.

Thanks. Brian. Good afternoon, everyone, and thank you for taking time to join us on today’s investors call. Although, it has only been a few weeks since our last update, we continue to make steady progress advancing our NPS technology. On today’s call, we will be recapping the progress made during the recent weeks, since, our last call, along with a brief discussion of our first quarter operating results and financial matters. We will close with an update on progress we made in drawing clarity around our forward trajectory for 2018 and beyond. As background for those of you who knew Pulse Biosciences and a reminder for those of you who have joined our previous calls, at Pulse Biosciences, we are developing a proprietary tissue treatment technology based on Nano-Pulse Stimulation, where ultrafast electrical pulses with nanosecond pulse widths from billions up to a millionth of a second are used to stimulate cellular effects that can lead to positive therapeutic outcomes. A nanosecond pulse is an incredibly fast pulse to give a sense of the scale light travels roughly 1 foot in a nanosecond and 186,000 miles in a second. When these incredibly fast pulses are applied to cells, they have demonstrated a unique ability to enter the cell and disrupt the functions of the intracellular organelles, the smaller operational structures within a cell, such as the endoplasmic reticulum, Golgi complex, and mitochondria. The disruption of the function of one or more of these cellular organelles can result in a change in function of the cell as a whole and initiate programmed cell death. We believe it is the ability to initiate programmed cell death through the temporary formation of pores and permanent disruption of the intracellular organelles that differentiates Nano-Pulse Stimulation from other energy-based therapies such as irreversible electroporation…

Thanks, Darrin and good afternoon, everyone. I want to take a moment to briefly comment on a matter disclosed in our Form 10-K and update in our current Form 10-Q. During February of this year, Pulse Biosciences and certain directors my-self and one other, received subpoena opinion from Securities and Exchange Commission relating to a non-public back-funding inquiry being conducted by the commission. Documents provided by the SEC, to Pulse Biosciences state and I quote, we are trying to determine whether there has been any violations of securities laws, the subpoena and investigation do not mean that we have concluded that you or anyone else has violated the law. Also, the investigation does not mean that we have a negative opinion of any person, entity or security. As chairman, I want to point out that, we have and are fully cooperating with the SEC and based on our current understanding, I do not believe this matter will have a material or meaningful adverse effect on our business. As a matter of fact, it has required time and attention and I believe most of that is behind us now. Based on our commitment to shareholder transparency, we will give updates when and if additional relevant data is known, verified and appropriate to make public. I’d now like to turn the call back to Darrin. Darrin?

Thanks Bob. I will now turn the call back to Brian to discuss our financial results for the first quarter of 2018.

Thanks, Darrin. During the first quarter of 2018, we continued to make significant investments in the development of our NPS technology, our NPS delivery system and related clinical and preclinical studies. Cash and investments as of the end of the first quarter of 2018 totaled $33.4 million compared to $38.1 million at the end of the fourth quarter of 2017. Cash used for the first quarter totaled $4.7 million compared to $3.9 million for the fourth quarter of 2017. Cash used during the quarter reflects the operating losses incurred for the period presented, and excludes non-cash stock-based compensation, amortization and depreciation. Turning to operating results. Net loss for the first quarter of 2018 totaled $8.7 million, which is consistent with the net loss realized during the fourth quarter of 2017 and $5.5 million higher than the first quarter of 2017 net loss of $3.2 million. The year-over-year increase of $5.5 million reflects operating expenses for G&A, which increased by approximately $4 million due to increased stock-based compensation of $2.5 million. This increase in stock-based compensation reflects significant equity grants made during the second half of 2017 and during the first quarter of 2018, higher Black-Scholes valuation that increased right prices, which reflect our stock price on the date of grant and expense associated with the employee stock purchase plan that was approved by shareholders and implemented during the second quarter of 2017. Further, G&A related expenses also increased due to an increase in headcount from six full-time employees in the first quarter of ‘17 as compared to 11 full-time employees in the first quarter of 2018, resulting in higher compensation costs. In addition, consulting and professional expenses in the G&A function increased by approximately $850,000 as compared to Q1 ’17, primarily from increased operational activity, increased public company reporting costs…

Thanks, Brian. I would now like to take another look forward to reiterate what investors can expect during 2018. First, to recap our first milestone achieved in 2018. We announced the positive results from our SK study at the ASLMS Annual Conference on April 13. Next, we’ll be commencing additional dermatology indication studies during second and third quarters of this year, and I look forward to sharing the targets for our next studies on the future call. We will advance our work in veterinary studies by commencing a second investigatory study in stage 1 and 2 canine oral melanoma. And finally, we’ll make significant progress this year towards the initiation of a human immune response clinical study in oncology. We continue to make significant progress towards our long-term objective of demonstrating the clinical utility of NPS in dermatology and its unique ability to stimulate an immune response in oncology application. That concludes our prepared remarks. Operator, we would now like to open the call to questions.

Thanks, operator. And thanks again to everyone for joining us on today’s call and allowing us to share our continued progress. We all forward to sharing our progress on our next investor update call. Thank you very much.

That concludes today’s conference call. You may now disconnect.