Good afternoon, and welcome to the Sonoma Fiscal Third Quarter 2017 Conference Call. My name is Brian and I will be your coordinator for today's call. At this time all participants are in a listen-only mode. At the end of the call, we will be holding a question-and-answer session with the company's management. As a reminder, this conference call is being recorded for replay purposes. I will now turn the call over to Mr. Dan McFadden. Please proceed, sir.

Thank you, Brian. Good afternoon and thank you for joining us today. With me on the call are our CEO, Jim Schutz; and our CFO and COO, Bob Miller. We will open the call with Jim's update on our business strategy moving forward followed by Bob Miller's review of our financial results for the third quarter. This afternoon, Sonoma issued a press release detailing fiscal third quarter 2017 financial results and recent corporate developments. A copy of the release can be downloaded from our website, which is www.sonomapharma.com, or you can call Investor Relations at 425-753-2105 and we will be happy to assist you. Before we begin, I remind listeners that this conference call contains forward-looking statements within the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by use of words such as expect, to expand, would and anticipate among others. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially, including risk inherent in the development and commercialization of potential products, the risk that potential clinical studies or trials will not proceed as anticipated or may not be successful, or sufficient to meet regulatory approvals, or receive the regulatory clearance or approvals. Also the company's future capital needs and its ability to obtain additional funding and other risk detailed from time to time in the company's filings with the Securities and Exchange Commission including the quarterly report on Form 10-Q and the annual report on Form 10-K. Identified product applications and/or uses are intended to highlight potential applications for the investment community and does not infer that the company is marketing for these indications. The company does not provide any assurances that such applications will receive regulatory approvals. Sonoma disclaims any obligation to update these forward-looking statements. So with that, I will now turn the call over to Jim Schutz, our CEO.

Thank you, Dan. For today's call, I'll cover just a few topics during the next six minutes and then Bob will jump into the numbers for the quarter in detail. And then finally, we'll open the call for Q&A. For my portion of the call, I'd like to share just a few thoughts on why we are here at Sonoma, why we exist as a company. And then switching gears spend just a few minutes on an upcoming significant milestone for our growing company. So first, why are we here is a company? What gets us out of bed early in the morning? You may remember that with our recent name and ticker change we also started pounding the drum about our purpose, a relentless passion for healing and that is truly our reason for being; to develop, market, and sell world-class healthcare products that demonstratively improve patient outcomes. A great case and point in highlighting this passion for healing. A 79-year old grandmother of four living an hour or so west to New York City, in Essex County, New Jersey, took a nasty spill between Thanksgiving and the December holidays. No broken bones, thank goodness, but she suffered a large gash on the bridge of her nose. Ideally for patients suffering a wound that require stitches, most physicians recommend that the womb not remain open for longer than 6 to 8 hours after the injury occurs. But in this case the 79-year old did not go see her general practitioner or head to the emergency room but rather waited to see her dermatologist about a week after her fall. By the time her dermatologist saw her the patient presented with significance scabbing; the dermatologist told us after the fact that she would have preferred to have seeing the patient…

Thank you, Jim. I'll first discuss a review of the financial results of our ground strategy. Secondly, our overall financial results for our third quarter ending December 31, 2016. And finally talk about the financial impact on Sonoma of the sale of our Latin American assets to Invekra, to subsequent hiring of 13 new sales people and our drive to commercial EBITDA breakeven. What have been the financial results of our dermatology focus starting in October 2014 through our third quarter ending December 31, 2016? As a preface to discussing these dermatology results starting from zero, direct sales revenue in late 2014, we have built a strong dermatology foundation over the last two plus years, upon which to continue to grow in the future. There are several ways to measure our success in the dermatology market. One is through the sales of our products to our wholesalers, which are recognized as revenue when shipped to them. This is a common way of recognizing revenue. Our total U.S. product revenue was $646,000 for the December quarter 2014, $1 million for the December quarter 2015 and $1.7 million in the December quarter 2016, up 65% over the same quarter last year. This method of recognition tends to be driven by the load ins to the wholesalers. More specifically, our U.S. dermatology net product revenue was $1.3 million for the quarter ending December 31, 2016, compared to $676,000 in the same period last year, an increase of $577,000 or 85%. While we recognize our derm revenue when we shipped to our wholesalers, a second method to objectively gauge the Sonoma dermatology performance is the number of prescriptions filled for patients via the pharmacies, multiplied times the price paid to us by the wholesalers. This is traditionally called 'demand dollars.' This information is available…

Thank you, sir. [Operator Instructions] Our first question will come from the line. I've Jason Kolbert with Maxim. Please proceed.

Thank you. Our next question will come from the line of Shane Martin, Stonegate Capital Partners. Please proceed.

Thank you. Our next question will come from the line of Chris Irons of QTR Research. Please proceed.

Thank you. Our next question will come for the line of Andy Summers with Janus Capital. Please proceed.

Thank you. [Operator Instructions] It looks like we have a follow-up question from the line of Jason Kolbert with Maxim. Please proceed.

Thank you. Our last question will come from [indiscernible]. Please proceed.

Thank you. There are no further questions in queue. So at this time I would now like to hand the conference over to Mr. Jim Schutz, Chief Executive Officer, for closing comments or remarks. Sir?

Thanks everyone for joining us for this call and for your continued support. We feel - Bob and I feel that Sonoma is in the best shape we've ever been for a couple of reasons. So we're executing on our turnaround strategy in a very attractive dermatology market with a growing experienced sales team, robust and unique products, and a nice pipeline. Our next step is to drive to commercial breakeven which we think will positively impact stock prices. Our current cash of $20.5 million enables us to step on the gas pedal in growing the sales force with no dilution to shareholders. And three, our EBITDA's breakeven plan is rather straightforward; we're going to hire new sales reps, we have solid pipeline of new products, we're going to continue to grow the sales of our current products and Bob's going to gently increase prices consistent with other comparable products. So we think we have the foundation and building blocks to achieve breakeven again at the risk of repetition [ph] without dilution of shareholders. So we look forward to sharing our progress as we build this company to becoming a pure play multi-technology dermatology company, and achieving our greater purpose of relentless fashion for healing. So thanks very much.

Ladies and gentlemen, thank you for your participation in today's conference. This does conclude the program and you may all disconnect. Everybody have a wonderful day.