Financial Data and Key Metrics Changes - The company reported a record financial performance in Q3 2020, with revenues increasing by 68% to $10.7 million compared to Q2 2020 [4] - Pre-tax net income rose by 465% to $5.6 million, while net income increased by 353% to $4.9 million [4] - Cash at the end of the quarter increased to $16.8 million, up from $8.5 million a year earlier [10] Business Line Data and Key Metrics Changes - Fixed fee software license revenues were approximately $6.3 million, up 6% from Q2 2020 [11] - Variable fee software license revenues surged to approximately $4.1 million, an increase of 1,310% [11] - Equipment and other sales reached $332,000, a 257% increase [11] Market Data and Key Metrics Changes - The two largest customers accounted for 39% and 30% of quarterly revenues, indicating a strong reliance on major clients [11] - The company experienced a significant recovery in business as non-emergency medical services resumed, exceeding pre-COVID-19 levels [12] Company Strategy and Development Direction - The company aims to expand its product offerings beyond Quantaflo for PAD, focusing on technology solutions for chronic disease management [3][16] - Investments were made in three new product areas, all of which are FDA-cleared and focus on chronic disease management [16] - The company plans to continue upgrading existing products and developing new services to enhance customer value [15] Management's Comments on Operating Environment and Future Outlook - Management noted that while the business has returned to pre-COVID-19 levels, the ongoing pandemic creates uncertainty for future quarters [12] - The company intends to manage expenses in line with revenue changes and may increase operating expenses as hiring resumes [12] - Management expressed optimism about the ongoing development of organic new products alongside external opportunities [29] Other Important Information - The company has no current plans to raise additional capital but reserves the right to change financing plans as needed [13] - A new member was added to the Board of Directors to meet NASDAQ governance requirements [14] Q&A Session Summary Question: Future outlook based on Q3 performance - Management indicated that the current business environment is positive, but caution is warranted due to COVID-19 uncertainties [19][20] Question: Impact of COVID-19 on revenue - Management acknowledged a significant catch-up in variable fee business in Q3, which had been impacted in Q2 [21][24] Question: New product initiatives and distribution strategy - Management confirmed that new products will be marketed to existing customers and potentially through new strategies [25][26] Question: Success in attracting new customers - Management reported growth among both existing and new customers during Q3 [27][28] Question: Plans for cash reserves - Management stated intentions to maintain cash reserves while exploring opportunities for proprietary acquisitions [33][34] Question: Hiring expectations - Management plans to hire in R&D, sales, and marketing to support anticipated growth [55] Question: Margin expectations - Management expressed confidence in maintaining strong margins across all products [56][57]

Financial Data and Key Metrics Changes - Annual revenue grew 73% to $21.5 million from $12.5 million, and net income increased to $5 million from a net loss of $1.5 million [6][8] - Earnings per share were $0.82 basic and $0.66 diluted, compared to a net loss of $0.28 both basic and diluted [6][8] - Total liabilities decreased by $3.3 million, and cash at year-end was $3.3 million, up from $1.5 million a year ago [6][10] Business Line Data and Key Metrics Changes - Operating expenses increased to $16.1 million, up from $13.3 million, representing a 21% increase [8][10] - In Q4 2018, revenue was $6 million, a 42% increase from $4.2 million, while operating expenses were $4.5 million, an 18% increase from $3.8 million [11][12] Market Data and Key Metrics Changes - The company noted that customer and market interest in its products is growing, with expectations for continued sequential growth in license revenue [7][13] - The market for vascular disease testing is large relative to current market penetration, indicating room for continued growth [17] Company Strategy and Development Direction - The company aims to further establish its QuantaFlo product as the standard of care in the industry and expects to grow revenue at a faster rate than expenses while remaining profitable [16][17] - Management plans to increase operating expenses to support anticipated growth, with no current plans to raise additional capital [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued revenue growth due to increased installations and usage of products, as well as recurring revenue from licensing [13][15] - The company believes that the QuantaFlo product provides substantial clinical and economic value, contributing to increased customer demand [35] Other Important Information - The company intends to re-list its stock on NASDAQ, which requires a minimum stockholders' equity of $5 million [10] - The historical pattern of quarterly revenue shows that the first quarter is typically the lowest, with increases in subsequent quarters [15] Q&A Session Summary Question: How does the fourth quarter compare to the third quarter? - Management characterized the fourth quarter as a terrific quarter, with significant customer interest and new orders coming in [21] Question: What are the main drivers of increased customer demand? - The QuantaFlo product is recognized for its clinical and economic value, leading to increased demand [35] Question: What is the expected capital expenditure for 2019 compared to 2018? - Capital expenditures are expected to be similar or slightly less than in 2018 due to decreased costs associated with hardware [39] Question: Can you provide updates on the adoption of QuantaFlo within UnitedHealth? - The penetration within UnitedHealth remains low, with estimates suggesting less than 10% [46] Question: What is the status of the iOS version and the congestive heart failure device? - The focus remains on upgrading current products rather than developing new ones, with all platforms now operational [51]