Q1 2024 Movano Inc Earnings Call

Operator: Greetings and welcome to the Movano Health Q1 2024 earnings call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star and then zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jay Cogan. Thank you. You may begin.

Greetings and welcome to the Murano Health Q1, 'twenty 'twenty four earnings call.

At this time all participants are in a listen only mode a.

A brief question and answer session will follow the formal presentation.

If anyone should require operator assistance during the conference. Please press Star then zero on your telephone keypad.

As a reminder, this conference is being recorded recorded.

Jeremy Cogan: It is now my pleasure to introduce your host Jack Cogan. Thank you you may begin.

Jeremy Cogan: Thanks, operator.

Jeremy Cogan: Rader. Good afternoon, everyone, and thank you for joining us today. Movano Health CEO John Mastrototaro will open today's call with prepared remarks about the progress the company has made during the first quarter of 2024 and recently. I will then provide highlights of the company's quarterly operating results and current financial performance, and then we'll open up the call for Q&A. John and I will be joined by our Chief Marketing Officer, Tyla Bucher, our Vice President of Business Development, Michael Soule, and our Vice President of Product and Strategy, Stacy Salvi.

Jeremy Cogan: Good afternoon, everyone and thank you for joining us today.

John: A lot of healthy John message Taro will open today's call with prepared remarks about the progress. The company has made during the first quarter of 2024 in recent weeks.

John: I will then provide highlights of the Companys quarterly operating results and current financial position.

John: Then we'll open up the call for Q&A.

John: John and I will be joined by our Chief Marketing Officer, Tyler Bueker, Our vice President of business development, Michael Soul, and Vice President of product and strategy phases Holly.

Jeremy Cogan: Health issued a news release this afternoon detailing its first quarter 2024 PNUS results. Before we begin, I'd like to remind everyone that the company will make forward-looking statements during today's call based on current expectations. Whether in prepared remarks or during the Q&A session, these forward-looking statements are subject to inherent risks and uncertainties, and actual results may be materially different from such statements. These risks and uncertainties are detailed in the risk factors section of Movano Health's filings with the Securities and Exchange Commission, specifically in the company's Forms 10-Q&A.

John: Well a lot of health issued a news release this afternoon detailing first quarter 2024 financial results.

Jeremy Cogan: Except as otherwise required by federal securities laws, Movano Health disclaims any obligation to update or make revisions to such forward-looking statements contained herein or elsewhere to reflect changes in expectations with regard to those events, conditions, and circumstances. And with that, I'll turn the call over to CEO John Mastrototaro.

John: Before we begin I'd like to remind everyone that the company will make forward looking statements. During today's call based on current expectations, whether in prepared remarks or during the Q&A session. These forward looking statements are subject to inherent risks and uncertainties and actual results may be materially different from such statements. These risks and uncertainties are detailed in the risk factors section.

John: And in <unk> filings with the <unk>.

John: Securities and Exchange Commission, specifically in the company's forms 10-Q and 10-K.

John: Except as otherwise required by federal Securities laws, and the bundle help disclaims any obligation.

John: Date or make revisions to such forward looking statements.

John: Change here in or elsewhere to reflect changes and expectations with regards to those events conditions and circumstances.

Speaker Change: That I will turn the call over to CEO, John most of its term.

John Mastrototaro: Good afternoon, everyone. As you are aware, we reported our Q4 2023 earnings just over a month ago on April 4. We were very excited to share the news of our recent $24 million private placement, which included a strategic seed investment from a tier one multi-billion dollar medical device company. While we plan to be judicious with our capital spend and methodical in our approach to build out our EV ring direct-to-consumer and EV med business-to-business market opportunities, we are committed to establishing a solid foundation for both our D As such, our priorities are threefold. One, to prepare to take D2C orders again for the EV ring. 2.

John: Good afternoon, everyone. As you are aware, we reported our Q4 2023 earnings just over a month ago on April 4th we were very excited to share. The news of our recent $24 million private placement, which included a strategic seed investment from a tier one.

John: All 5 billion dollar medical device company.

John: While we plan to be judicious with our capital spend.

John: The article in our approach to build out our E b ring direct to consumer and E beam net business to business market opportunities.

John: Admitted to establishing a solid foundation for both our D to C and <unk> businesses. So we can successfully serve all our customers.

John Mastrototaro: To secure FDA 510K clearance for its pulse oximeter feature under the EVMed brand, and 3. To refine our wrist-worn prototype with the mmWave RF system on a chip in preparation for additional blood pressure and glucose studies. As to the first priority, we are laser focused on preparing to take orders again for the EV ring, which requires that we deliver an excellent product experience, ensure a seamless delivery timeline for all orders, and provide an improved customer service response to any issue.

John: As such our priorities are threefold, one chip prepare to take D to C orders against that E D ring.

John: To just secure FDA five 10-K clearance for its pulse oximeter feature under the EDI Med brand.

John: And three to refine our risk one prototype with the millimeter wave RF system on a chip in preparation for additional blood pressure and glucose studies.

John: As to the first priority we are laser focused on preparing to take orders against the the EBIT range, which requires that we deliberate and excellent product experience ensure a seamless delivery timeline for all borders and provide an improved customer service response to any issue.

John Mastrototaro: From a product standpoint, we are diligently working to improve the customer experience across both hardware and software. We are developing more robust hardware with improved chemical, environmental, and physical resistance. In software, we are improving our heart rate and motion and sleep algorithms, implementing a more comprehensive AI-driven suite of insights, and initiating the process to develop an Android version of the app. On the production side, we are enhancing our automation, tooling, assembly, and test processes to increase yield and throughput as we prepare for relaunch.

John: From a product standpoint, we are diligently working to improve the customer experience across both hardware and software we.

John: We are developing more robust hardware with improved chemical environmental and physical resistance.

John: Software, we are improving our heart rate in motion and sleep algorithms implementing a more comprehensive AI driven suite of insights and are initiating the process to develop an Android version of the App.

John: On the production side, we are enhancing our automation tooling and assembly and test processes to increase yields and throughput as we prepare for relaunch.

John Mastrototaro: We are also in conversations with our key production partner to implement a turnkey solution which would further increase our efficiency. We have bolstered our customer service capacity and implemented an AI-powered customer response chatbot on our site, as well as onboarded a new head of customer service with over 25 years of experience in the D2C space. All these efforts will ensure an enhanced customer experience whether users reach us through D2C or B2B channels.

John: We are also in conversations with our key production partner.

John: Lamented turnkey solution, which would further increase our efficiencies.

John: We have bolstered our customer service capacity and have implemented an AI powered customer response chatbot on our on our site as well as on boarded a new head of customer service with over 25 Years' experience in the DTC space.

John: All these efforts will ensure.

John: An enhanced customer experience, whether users reach us through D to C or b to B channels.

John Mastrototaro: Regarding our second priority, we are working closely with the FDA in anticipation of a 510K clearance on the medical device version of the ring, which we will launch under the brand name EVMed. We announced last week that we successfully submitted exemplary clinical trial results from a Q1 hypoxia trial to the FDA on April 22, 2024, which is a significant milestone for our organization. During the trial, each subject wore four EV med rings, two on their fingers and two held on their fingertips.

John: Regarding our second priority, we are working closely with the FDA in anticipation of a five 10-K clearance on the medical device version of the rain, which we will launch under the brand name <unk> that.

John: We announced last week that we successfully submitted exemplary clinical trial results from our Q1 hypoxia trial to the FDA on April 22024, which is a significant milestone for our organization.

John: During the trial, each subject work or EV med rings chew on fingers in to held on fingertips, when evaluating accuracy versus arterial blood gas levels. The four E V. Med range achieved a route means wherever up 2.46% well within the FDA guidance of three 5%.

John Mastrototaro: When evaluating accuracy versus arterial blood gas levels, the four EV med rings achieved a root mean square error of 2.46%, well within the FDA guidance of 3.5%. In addition, our ring's accuracy exceeded that of two commercially available hospital-grade reference pulse oximeters, one of which failed to meet the FDA standard for accuracy. We continue to expect an FDA decision regarding our 510K in July 2024. In preparation for a positive FDA decision, we remain bullish on the enterprise opportunities that we believe a clearance will unlock for our organization. And as we get closer to securing this distinction, we are already engaged with our strategic partners in the pharmaceutical, medical device, and payer channels.

John: In addition, our range accuracy exceeded that of the two commercially available hospital grade reference pulse ox sectors, one of which failed to meet the FDA standard for accuracy. We continue to expect an FDA decision regarding our five 10-K in July 2024.

John: In preparation for a positive FDA decision, we remain bullish on the enterprise opportunities that we believe our clearance will not lock for our organization and as we get closer to securing this distinction we are already engaged with our strategic partners in the pharmaceutical and medical device and payer channels.

John Mastrototaro: These partners have all expressed the immediate challenge they face in obtaining continuous and secure medical-grade data and see our solution as an integral part of their future initiatives. We see opportunistic applications in the chronic management of cardiovascular, metabolic, obesity, and pulmonary patients, which, in aggregate, we've identified as a $20 billion per year market opportunity. And finally, we continue to focus on the breakthrough technology of our ultra-compact and efficient health monitoring system on a chip, which measures just 4 by 6.7 millimeters and has yielded breakthrough advances in blood pressure monitoring, enabling accurate, coughless, and automated tracking.

John: These partners have all expressed the immediate challenge they face and obtaining continuous and secure medical grade Daiwa and see our solution as an integral part of their future initiatives.

John: We see opportunistic applications and chronic management of cardiovascular metabolic obesity and pulmonary patients which in aggregate we've identified as a 20 billion dollar per year market opportunity.

John: And finally, we continue to focus on the breakthrough technology of our ultra compact and efficient health monitoring system on a chip, which measures just or by $6 seven millimeters and has yielded breakthrough advances in blood pressure monitoring, enabling accurate heartless and automated tracking.

John Mastrototaro: As you'll recall, we previously announced the results of a blood pressure clinical study in October 2023, where our prototype achieved an overall mean absolute difference, or MAD, of 5.9 millimeters of mercury below the 7 millimeters of mercury MAD required per an FDA-recognized standard for wearable, couples blood pressure measuring devices. We have been making enhancements to this prototype we evaluated in that study, and we expect that our next blood pressure study will take place this June and will be the first study we've done with an arterial line, which is the precursor to an FDA pivotal study.

John: As you'll recall, we previously announced the results of our.

John: Blood pressure clinical study in October 2023.

John: Our prototype achieved an overall mean absolute difference or N a D. A.

John: Five nine millimeters of Mercury below the seven millimeter of Mercury.

John: Required current FDA recognized standard for wearable helpless blood pressure measuring devices.

John: We have been making enhancements to this prototype we evaluated in that study and we expect that our next blood pressure study will take place. This June and will be the first study we've done within arterial line, which is the precursor to an FDA pivotal studies.

John Mastrototaro: Unlike a cuff, which provides only one blood pressure value, an arterial line will provide continuous data on a number of patients. In addition, we are also evaluating AI-based individual calibration methods to further enhance the future performance of our platform. Ultimately, we expect blood pressure monitoring to be a significant addition to the suite of analytes we currently offer in EV, as over half the adults in the U.S. over age 20 are prehypertensive or have hypertension. Continuous monitoring of blood pressure holds the promise of dramatically enhancing the management of these conditions. With that, I'll now hand the call over to Jay for the financial review.

John: Unlike a car, which provides only one blood pressure value and arterial line will provide continuous data on a number of patients.

John: In addition, we are also evaluating AI based individuals calibration methods to further enhance the future performance of our platform. Ultimately we expect blood pressure monitoring will be a significant addition to the suite of analytes. We currently offer an E D.

John: Over half the adults in the U S over age 20, a pre hypertensive or have hypertension.

Jay: Tenuous monitoring of blood pressure holds the promise of dramatically enhancing the management of these conditions with that I'll now hand, the call over to Jay for the financial review.

Jeremy Cogan: Thanks, John. We shipped 5305 EV rings in the first quarter of 2024 and reported $852,000 in revenue during the period. The company reported an operating loss of $5.8 million in the first quarter of 2024 versus an operating loss of $7.2 million in the year ago. We launched EV Ring during the Black Friday 2023 holiday period, and we are reporting revenue for the first time as revenue is tied to the timing of Ring shipments, which commenced in January of this year.

Jay: Thanks, John we shipped 5305 rigs in the first quarter of 'twenty 'twenty, four and reported $852000 in revenue in the period. The company reported an operating loss of $5 8 million in the first quarter of 2024 versus an operating loss of $7 $2 million.

Jay: In the year ago period.

Jay: We launched the heavy rains during the Black Friday 2023 holiday period, and we are reporting revenue for the first time has revenue is tied to the timing of when shipments which commenced in January of this year.

Jeremy Cogan: You'll recall that given capital constraints, we ceased all paid marketing as of December 1, 2023, and temporarily halted taking orders in February of 2024. From December of 2023 through March of this year, we prioritized capital preservation and actions to meet production and customer service. Not surprisingly, given the limited initial launch, there were some operating inefficiencies and learnings early on. For example, our launch generated a great deal of excitement, and consumers were anxious to receive their rings. However, delays that we experienced with delivery timelines generated a number of cancellations that impacted the top and bottom line results of our initial launch. We intend to avoid this issue going forward, as John noted earlier, by ensuring ample inventory prior to taking orders again.

You'll recall that given capital constraints, we ceased all paid marketing as of December one 2023 and temporarily halted taking orders in February 2024 from.

Jay: From December of 2023 through March of this year, we prioritized capital preservation and actions to meet production and customer services.

Jay: Not surprisingly given the limited initial launch there were some operating inefficiencies and learnings early on for.

Jay: For example, our launch generated a great deal of excitement.

Jay: We're anxious to receive their ranks.

Jay: Ladies that we experienced with delivery timelines generated a number of cancellations that impacted the top and bottom line results of our initial launch.

We intend to avoid this issue going forward as John noted earlier by ensuring ample inventory prior to taking orders again.

Jeremy Cogan: We are already making important strides in additional operational improvements across product, manufacturing, and customer service that should position us well for both an expanded launch of the EV ring and direct-to-consumer, and eventual launch of EV med and B2B upon an FDA clearance decision. Following our successful private placement in April, where the company raised $24 million in gross, including a strategic team investment from a tier one multi billion dollar medical device company. We believe we have the resources to judiciously drive our DTC business, launch EVMed, target B2B, and accelerate clinical trials related to our proprietary RF techniques.

Jay: We're already making important strides in additional operational improvements across products and factoring and customer service that ship possession position us well for both an expanded launch of easy ring and direct to consumer and eventual launch that you'd be mad and PDP upon an FDA clearance decision.

Jay: Following our successful private placement in April where the company raised $24 million in gross proceeds, including a strategic investment from tier one multibillion dollar medical device company. We believe we have the resources to judiciously drive our DTC business launches emad.

Jay: <unk> to be an accelerate clinical trials related to our proprietary RF technology.

Jeremy Cogan: Importantly, and as noted before, with these funds now on our balance sheet, we are in conversations with our production partner about a turnkey solution which should free up both working capital and human resources for Movano Health. A few other financial highlights Our cash burn in the first quarter of 2024 was $4.1 million, which was inclusive of costs for the EV ring launch and expenses related to our FDA submission, as well as other quarter-to-quarter timing considerations.

Jay: Accordingly, and as noted before with these farms now on our balance sheet. We are in conversations with our production partner about a turnkey solution, which should free up both working capital and people resources form of oral health.

Jay: A few other financial highlights our cash burn in the first quarter 2024 was $4 $1 million, which was inclusive of costs for the relaunch and expenses related to our FDA submission as well as other quarter to quarter timing considerations.

Jeremy Cogan: Whereas we had $2.1 million of cash and cash equivalents on our balance sheet at March 31, so, for the early April private placement, we had $24.8 million of cash and cash equivalents at that time. Now I'll turn it back over to John for final remarks.

Jay: Whereas we had $2 $1 million of cash and cash equivalents on our balance sheet at March 31 pro forma for the early April private placement, we had $24 $8 million of cash and cap cash and cash equivalents at that time.

John: Now I'll turn it back over to John for final remarks.

John Mastrototaro: Thanks Jay. This past quarter has been a significant one for the company, marked both by value from our D-to-C launch, as well as significant progress in our organizational milestones. We are encouraged on all fronts and look forward to a successful D-to-C re-ignition, continued positive momentum around our expected 510K clearance, and advancing to the next phase of our blood pressure clinical studies. We are confident that this combination of positive developments will act as a catalyst for success through the balance of the year, and we look forward to keeping you updated as we continue to make headway. As that concludes our formal remarks, we'd be glad to take your questions.

Thanks, Jay this past quarter has been a significant one for the company Mark both by valuable lessons.

John: From our D to C launch as well as significant progress in our organizational milestones. We are encouraged on all fronts and look forward to a successful D to C. Readmission continued positive momentum around our expected five 10-K clearance and advancing to the next phase of our blood pressure clinical studies we are.

John: Confident that this combination of positive developments will act as a catalyst for success through the balance of the year and we look forward to keeping you updated as we continue to make headway.

John: That concludes our formal remarks, we'd be glad to take your questions.

Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star and then 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star and then 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the start key. For those on the webcast, you can submit your questions via the webcast platform.

Speaker Change: Thank you.

Speaker Change: I'll be conducting the question and answer session.

Speaker Change: If you would like to ask a question. Please press star and then one on your telephone keypad.

Speaker Change: Information tenant window catch your line is in the question queue.

Speaker Change: Can I press Star and then two if you talk to remove your question from the queue.

For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Speaker Change: But that is on the webcast you can submit your questions via the webcast platform.

Jeremy Cogan: Okay, operator, it looks like, well, at least while we're waiting for any questions from the phone lines, we have a few questions on the webcast. So I can go ahead and begin, asking those and directing them to the team. The first one, John, I think this should be for you. Could you provide any updates as it relates to the 510K process beyond what you mentioned in the call to action?

Speaker Change: Okay, operator, it looks like well at least while we're waiting for any questions from the phone lines. It looks like we have a few questions on the webcast. So I can go ahead and begin.

Speaker Change: Asking those sent directly to the team.

Speaker Change: The first one John I think this should be for you could you provide any updates as it relates to the 500 10-K process.

Speaker Change: Beyond which you mentioned in the call today.

John Mastrototaro: Sure, Jay. Thanks for the question. As I mentioned in the call, we recently filed with the FDA some new clinical results for another hypoxia study where we had four rings worn at four different locations for each subject, and we were really pleased with the results, which exceeded our expectations. The rings not only far exceeded the FDA benchmarks, but they provided more accurate results than two FDA-approved hospital-grade control devices that were used during the study, and so I think those results bode very well for us.

John: Sure Jay Yeah. Thanks for the question.

John: As I mentioned in the call. We recently refiled with the FDA some new clinical results for another hypoxia study, where we had four rigs working on four different locations for each subject than we were really pleased with the results, which exceeded our expectations the rings not only exceeded far exceeded.

John: The FDA benchmarks, but they provided more accurate results then two FDA approved hospital grade control devices that were used during the study and so I think those results bode very well for us we've actually since putting in the new data have already had some back and forth communication with our reviewer.

John Mastrototaro: We've actually, since putting in the new data, already had some back-and-forth communication with our reviewer, and thus far, things are going pretty well, so we're going to continue to work closely with the agency along the path of ideally getting this product cleared for market.

John: And thus far things are going pretty well. So we're going to continue to work closely with the agency are along the path of ideally getting this product cleared from the market.

Jeremy Cogan: I think Michael Soule can answer the next question, which is, can you provide some more detail on your plans for the launch of EVMed with B2B partners?

Speaker Change: I think Michael So can answer the next question, which is can you provide some more detail on your plans for the launch of EDI med.

Michael Aaron Leabman: With <unk> partners.

Michael Soule: Sure. Yeah, that's a good question.

Michael Aaron Leabman: Yeah sure Yeah, that's a good question.

So we continue to engage with all of our data partners and channels ranging from medical device to pharma, who are looking forward to our FDA clearance in the July timeframe.

Michael Soule: So we continue to engage with all of our beta partners and channels, ranging from medical device to pharma, who are looking forward to our FDA clearance in the July timeframe. We expect a five-take team clearance that unlocks a host of initiatives across clinical trials and remote patient monitoring, and we're currently building the back-end data systems required for these partnerships so we can hit the ground running. Coming off our recent announcement of our coughless blood pressure clinical study results, we have another new group of large strategic partners wanting to work with us in channels ranging from pharma to medical devices.

Michael Aaron Leabman: We expect a five taking clearance that unlocks a host of initiatives across clinical trials and remote patient monitoring.

Michael Aaron Leabman: And we're currently building the back end data systems required for these partnerships that we can hit the ground running.

Michael Aaron Leabman: Coming off our recent announcement a couple of blood pressure clinical study results. We have another new group of large strategic partners wanting to work with us and channels ranging from pharma to medical device.

Jeremy Cogan: Okay, speaking of blood pressure, this next question, I guess, could be for Michael Leabman or John. Do you want to comment on the progress you've seen with your blood pressure?

Speaker Change: Okay speaking of blood pressure.

Speaker Change: Question, I guess cooking for Michael Lehman.

Speaker Change: John do you want to comment on the progress you've seen with blood pressure.

John Mastrototaro: Sure, I can take that, Michael. Yeah, yeah.

John: Sure I can take the Michael.

John: Yeah, Yeah, So I think.

As John mentioned earlier, our next big step you.

John: You know, there's two big steps actually wanted us to take our blood pressure reference design and make it more.

John: Product as we get closer to our pivotal study.

John: And as John said.

I'm, just really trying to improve improve.

John: In Peru, the algorithm and do a search here a line test in June which is similar to the testing would be doing for FDA pivotal studies. So really just trying to get everything ready and a forum to really facilitate fast tracking our blood pressure.

Michael Aaron Leabman: So I think, as John mentioned earlier, our next big step, you know, it was two big steps: actually wanted to take our blood pressure record design and make it more of a product as we get closer to our pivotal study. And as John said, really trying to improve the algorithm and do a sarterial line test in June, which is similar to the test we would be doing for FDA pivotal studies. So really just trying to get everything ready in a form to really facilitate fast tracking blood pressure.

Jeremy Cogan: Okay, John, do you want to take this next question? I'll throw a couple of questions together, because they all relate to the shipping of the EV rings. Some questions about when we'll start shipping EV rings, and then also some questions about features related to EV, including how far are we from an end register.

Speaker Change: Okay. John do you want to take this next question I'll throw a couple of questions.

Speaker Change: Together, because they all relate to the shipping of the EDI ranks some questions about when we'll start shifting heavy rains.

Speaker Change: And then also some questions about.

John: Features related to E D, including how far are we from an Android app.

John Mastrototaro: Sure, Jay. Thanks.

John: Sure Jay Thanks, Yeah.

John: I've seen this question is coming up quite a bit so as Jay had mentioned in the prepared remarks, we went through a pretty challenging capital situation at the end of.

John: Last year and into early this year, which are kind of.

John: <unk> strong is a little bit on what we were able to do however.

John Mastrototaro: Yeah, I see this question is coming up quite a bit. So, as Jay had mentioned in his prepared remarks, we went through a pretty challenging capital situation the end of last year and into early this year, which kind of hamstrung us a little bit on what we were able to do. However, launching the ring when we did and getting it out there in the marketplace where we could learn really provided a great opportunity for us.

John: Launching the ring when we did.

John: And getting it out there in the marketplace, where we could learn really provided a great opportunity for us and so now that we have the new funding we are focused on optimizing our production processes and delivery times.

John: As well as working on overall rig improvement then of course, the enhancements that we've already been making to our customer service. We are currently working with our manufacturing vendors to order all the raw materials that we need to satisfy increased demand that we expect moving forward and we're going to hold on taking new rig orders until we've ensured that we.

John Mastrototaro: And now that we have the new funding, we are focused on optimizing our production processes and delivery times, as well as working on overall ring improvements. And, of course, the enhancements that we've already been making to our customer service. We are currently working with our manufacturing vendors to order all the raw materials that we need to satisfy the increased demand that we expect moving forward. And we're going to hold on taking new ring orders until we've ensured that we can establish and maintain an ongoing inventory of about one to two months by SKU at all times.

John: Can establish and maintain an ongoing inventory of about one to two months.

John: <unk> SKU at all times once we're confident in all of these initiatives that we've setup.

John: And then we will announce a new ship start date, but we are under no huge urgency to do this earlier than when we feel really confident in our ability to fulfill orders and so having inventory built up and maintained before we turn on the spigot again is very important to us as an organization.

John Mastrototaro: Once we're confident in all these initiatives that we've set up, then we will announce a new ship start date. But we are under no huge urgency to do this earlier than when we feel really confident in our ability to fulfill orders. And so having inventory built up and maintained before we turn on the spigot again is very important to us as an organization.

John:

Jeremy Cogan: Great. And John, I have another one for you. Someone's asking if there's any update on the strategic investor and other potential partnerships.

Speaker Change: Great and John and I have another one for you.

Speaker Change: Someone was asking if there's any update on the strategic investor.

Speaker Change: And other potential partnerships.

John Mastrototaro: Sure. Oh, well, as it relates to the current strategic investor, it's actually been a very, really collaborative relationship. It's only a little more than a month old since we did the fundraise, and already, I've had multiple meetings with their team. They've actually offered us some support in a couple of areas where they have more experience and expertise than us, which has been very valuable to us for moving forward. And we've discussed some further opportunities where our ring, in its current embodiment, could potentially be beneficial to some of the work that they're doing with customers and where they see the market trends going.

Speaker Change: Sure Oh, well as it relates to the current strategic Investor, It's actually been a very really collaborative relationship.

Speaker Change: That's only a little more than a month old.

Speaker Change: Since we did the fund raise and already I've had multiple meetings with their team they'd actually offered us some support in a couple of areas, where they have more experience and expertise than us which has been very valuable to us for moving forward and we've discussed some further.

Speaker Change: Sure.

Speaker Change: Opportunities, where our ring in its current embodiment could potentially be beneficial to some of the work that they're doing with customers and where they see the market trends going and lastly of course, there's the continued interest in what we're doing with our proprietary millimeter wave RF Tech.

John Mastrototaro: And lastly, of course, there's the continued interest in what we're doing with our proprietary millimeter wave RF technology and the future that that holds, as I mentioned, as it relates to blood pressure and or glucose, which are the two big granddaddies of metrics that we could be monitoring. So, a lot of excitement there as well. So, yeah, since this engagement started, it's been nothing but positive, I think, both on our side as well as theirs. And we've shared with them our strategic plan for the rest of this year and going into next, and gotten some feedback from them about what our plans are and our focus. And we're in complete alignment.

Jeremy Cogan: Great. And then a couple of quick ones here. Blood pressure: do we see the first commercial device being a wristband or a ring? And then for EV med, will that also be for men?

Speaker Change: Knowledge, he and the future that that holds as I mentioned as it relates to blood pressure and her glucose which are the two big Grand Daddies of metrics.

Speaker Change: That we could be monitoring so a lot of excitement there as well. So yeah. That's that's the engagement started it's been nothing but positive I think both on our side as well as theirs and we've shared with them our strict strict strategic plan for the rest of this year and going into next thing gotten some feedback from them about.

Speaker Change: What our plans are and our focus and where we're in complete alignment.

Speaker Change: Great and then a couple of quick ones here.

Speaker Change: Blood pressure do we see the first device commercial device being a wristband or a ring and then for <unk>.

Speaker Change: Meg will that also be for Matt.

Michael Aaron Leabman: Michael, why don't you do the first part of that, and I'll do the second part.

Michael: Michael Why don't you do the first part of that and I'll do the second part.

John Mastrototaro: Sure. So, I mean, our chip, as John mentioned, is four by six millimeters. So it does have the ability to eventually go into a ring as well. I think in this first go around, given all of the great data so far that we've done in our previous clinical studies, we want to make sure that we, you know, get through the FDA as quickly as possible with, you know, what we've already been testing for the last year and a half. And I think once we take that a little bit further along, then we'll start looking at putting it into the ring.

Michael: Sure. So I mean, our chip as John mentioned, it's more by six millimeter. So it does have the ability to eventually go until rain as well I think in this first go around given all of our great data. So far that we did in our previous clinical studies, we want to make sure that we get through the Afghan as quick as possible with what we've already.

Michael: <unk> been testing philosophy now we're in a half and I think he wants me to pick out a little bit further along then we'll start looking at putting it into the range as well.

John Mastrototaro: And then as it relates to EV med, I can tell you a couple of things that are very important. When we ran our clinical trials for SpO2, for example, and heart rate, that was done both in men and women, you know, we looked at the entire population, as well as, very importantly, people with different skin tones because of their optical sensors for SpO2. And so really, that was not limited to only women; it's for all.

Michael: And then as it relates to E V. Med Ah I can I can tell you about a couple of things that are very important when we've run our clinical trials for <unk> for example, and in heart rate that was done both men and women.

Michael: We looked at the entire population as well as very importantly people with different skin tones, because their optical sensors for S. P O too and so really that was not limited to only.

John Mastrototaro: And in the discussions that we've had, and Michael Soll perhaps can elaborate on this, but the discussions that we've had with potential partners in the healthcare space, some of them are developing female-focused solutions, so obviously that would apply to them, but many others are looking at this for both men and women. And the ring today is worn by some men, albeit a much, much smaller number of men than women, but nothing prohibits the ring from being used by either men or women.

Michael: Women, it's for all and in the discussions that we've had in Michael So perhaps can elaborate on this but the discussions that we've had with potential partners in the health care space. I mean, some of them are developing female focused solution. So obviously that would apply to them, but many others are looking at this for both.

Michael: Men and women men and the ring today is worn by by some men.

Michael: At a much much smaller number of men and women, but nothing prohibits the ring from being used by by either men or women in certainly the man on this call and out in the field are using E E D rings today and as the medical device comes to market.

John Mastrototaro: And certainly, the men on this call and out in the field are using EV rings today. And as the medical device comes to market, we will certainly use it on both men and women. And Michael Soll, I don't know if you have anything you'd like to add. Michael Soll: No.

Michael: Certainly.

Michael: Use it on on both men and women in Michael So I don't know if you have anything you'd like to add.

Michael Soule: No, John, you covered it well, just that, you know, all of our beta partners, while they see what we're doing in the direct-to-consumer world and think it's a really great strategy in the clinical trial areas and medical device areas, the folks, the large strategics that we're dealing with, see this as a unisex device, so I just want to add that.

No John you covered it well I'm just that you know all of our beta partners, while they see what we're doing in the direct to consumer world in and think it's a really great strategy.

Speaker Change: And the clinical trial areas in medical device areas. The folks the large strategics that we're dealing with C. This is a unisex device. So I just wanted to add that.

Jeremy Cogan: Okay, and then this looks like our last question for the webcast, and it doesn't look like we have any on the phone lines. So this will be our last question for this call today. You sold a million dollars of rings. I'll take this one by the way. You sold a million dollars of rings in the first 10 days of your launch but netted $850,000 after a full quarter. Can you elaborate on the depth?

Speaker Change: Okay, and then it looks like our last question for the webcast and it doesn't look like we have any phone lines. So this will be our last question for this call today.

Speaker Change: You sold a million dollars of bringing so I'll take this one but you sold a million dollars of rigs in the first 10 days of your launch that netted $850000. After its full quarter can you elaborate on the difference sure as.

Jeremy Cogan: Sure. As we mentioned on the call, we had a lot of demand at launch, and we were very committed to fulfilling all the orders as quickly as possible. But we did have a series of unexpected delays on the manufacturing side, which caused some frustration for consumers, and they grew tired of waiting and subsequently canceled their orders. So while that was disappointing, it was excellent learning for us as an organization. We've since modified our processes and our inventory controls so that when we begin taking orders again in the future, we will have plenty of inventory and be able to deliver all sizes and colors within 5 to 7 business days. Okay, operator, that looks like the end of the Q&A. I will turn it back to you.

As we mentioned on the call we had a lot of demand at launch and we're very committed to fulfilling all the orders as quickly as possible, but you did have a series of unexpected delays on the manufacturing side.

Speaker Change: Which caused some frustration consumers and they grew tired of waiting and subsequently canceled.

Speaker Change: Their orders so while that was disappointing.

Speaker Change: Excellent learning for us as an organization since modified our processes and our inventory controls so that when we began taking orders again in the future.

We'll have plenty of inventory and be able to deliver all sizes and colors.

Speaker Change: Within five to seven business days.

Speaker Change: Okay, operator that looks like the end of the Q&A I will turn it back to you.

Speaker Change: Okay.

Operator: Thank you, sir. Do you have any closing remarks you would like to say? Yes, thanks.

Speaker Change: Thank you.

Do you have any closing remarks, you would like to say.

Jeremy Cogan: Yes, thanks for reminding me, just one. We appreciate you all being on the call today, and if you'd like to continue to follow Movano Health for news and events, please stay tuned to our website at ir.movano.com.

Speaker Change: Yes, Thanks for reminding me just one.

Speaker Change: We appreciate you all being on the call today, and if you'd like to continue to follow Novato helped for news and events. Please stay tuned to our website at IR <unk> com.

Operator: Ladies and gentlemen, that concludes this conference. Thank you for joining us. You may now disconnect your lines.

Speaker Change: Ladies and gentlemen that concludes this conference. Thank you for joining US you may now disconnect your lines.

Speaker Change: Okay.

Speaker Change: [music].