Movano (MOVE) 15 May 232023 Q1 Earnings call transcript

Greetings, and welcome to Movano’s First Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

Now my pleasure to introduce your host, J. Officer. Financial Chief Cogan, you. Thank

begin. may You

Thank you, joining thank for everyone, Good today. morning, us and you operator.

Our will the John the XXXX CEO, Mastrototaro recent progress remarks with and we’ve about prepared made during weeks. first of open quarter today’s call

provide also financial highlights Officer, update give operating of upcoming of our will the position. Afterward, Ring. and us the to quarterly Our Chief Evie Bucher a I’ll join our Marketing launch Tyla perspective an on on cover results the

Chief Technology our and Michael Leabman; Strategy, Finally, join Salvi, Founder Movano and session. Officer, and Stacy the Vice will Health’s Q&A of President me John, Tyla for

movanohealth.com. a issued release Health first today’s quarter this results. news Movano at afternoon and detailing on our release earlier available presentation news This are financial website our

expectations as company’s with XX-Q Factors in herein elsewhere or circumstances. update of such specifically regards statements and and to securities to those forward-looking expectations. with and inherent Whether session, uncertainties prepared the the in be statements. materially Before Movano the that by to required to during these are different would These everyone from in Risk contained forward-looking statements such Exchange forward-looking or any section XX-K. during to actual Commission, begin, Securities we the and in current call risks obligation make I to federal filings our based our statements events, are reflect uncertainties may Q&A Except today’s risks conditions, and like remind results remarks laws, detailed otherwise or disclaims on Forms Health make will and changes we revisions subject

John over call Mastrototaro. Now, I’d like to the to our turn CEO,

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our today be prepared when or may clearance, our as the which about first to we commentary. FDA is we have June I’ll consistent FDA We September, in XXX(k) launch time The or announced file in launch FDA to talk of heart whether may previous a the And rate just sync and oxygen. Evie with blood device we moment. an the the in not not timing with for medical with planned from a where a comes. then filing are wellness decision a more we are in transition device to and that

potential successful on all, very in believe bullish launch for a the and remain our strategy and All beyond. we company market the for position should Evie

to on launch to Our CMO, want In Tyla company plans. our meantime, initiatives. of an us will important around provide join update I Bucher the provide a details variety later more on

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vendor the FDA contract and risk system design an things. control and risk and manufacturer team compliant management other assess management among features use, quality a every of we requires and component This to

completion plan and Fortunately, to FDA wearables. end first clearances stage we’re the on the all make for required and June. set future of Evie documentation formal by will submission the submission the nearing our This of future

when well believe wellness existing And competitive solutions. a The effort as enterprises. healthcare device with presents compared with asset highly opportunities to we associated it’s company differentiator medical becoming underappreciated an other a significant and as

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app understanding with that real when now with the Evie to strengths opportunities showcased we and armed usability result, and and experience. presented greater are fine a we and our people where data Ring a gained about how As the interact ring, us tune and with

to incorporating into forward looking which the our set commence data next programs, of are set We’re learnings early July. in to

be healthcare, the a calls, and cleared that the solution of like global we’re consumer with company high with given best athletic an tech testing device. global round additional we’ll there as more our combines consumer apparel of this are and and enterprises betas, in Evie, wearables FDA technology medical interest leading of in the two companies, quality pilot many prior device with discussions During across we’ve which in a

been our pressure clinical that now also in completed. March, first solution earnings which we getting During our trial, has call were we effectively blood shared chip single ready last its for

Over will local brought volunteers clinical Movano participate from over the clinical community of IRB approved the in tomorrow, course have lab we to ending in Health weeks to XX three an our study.

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trial timeframe. the We June, use a same plan in chip single to clinical in glucose July the prototype

glucose and pressure to We file patents innovative RF-enabled our continue protect approach blood to monitoring. and to validate

issued issued this including of During issued the six in IP patents patents, new pending. patent China patents were foundational XX the one extending we U.S. XX year, in and first our portfolio patents to quarter multiple U.S.,

it to on to over for an Ring. like Evie our the our CMO, turn update launch Tyla Bucher, for plans I’d Now

John. Thanks,

of and awareness consumers. with is a with our which expectations. earned paid targeted consumers multi-channel leverages social level So launch September in a strong the already addition to well the ignited building of establishment strategic engage to on perspective Evie a great messaging campaign successful resonating this we’re beyond another product underway. our XXXX to critical Evie, significant product, at which that and organic now well base, The is component is interest in CES is follower building that

over In our our pre-launch. adopters product. announced our on signed and an our received sale. important These we potential the on audience our very positive above of channels the is for are once visitors combined us numbers for X.X pool product, average million four launch about months shape course, a since we lead This updates media XX,XXX lookalike ready social people strong who cultivated demand audience have Evie, an engaged of as to for as and our rate a signal plans. sign providing up we to base feedback, valuable our We’ve of including have early grow well the social almost with helping is are story and as tell impressive receive regular engagement list conversion site, device

very our believe out and we’re point comprehensive that these email We subscription call point consumers for certain a And are updates. we such price Additionally, solution. will a this forward is let about know a sending following without to about exciting hear $XXX to looking just to highly price that competitive announced. everyone an John attractive this excited be

September’s paid and In endorsements, out blends building celebrity we PR partnerships, marketing that [ph] launch, preparation content. influencer for campaign a are advertising

against Our standpoint. as well media awareness positions timing campaign launch to seasonality, the from execute this customer and September

As noted, are turning attention John their returning fall. the vacation many and to from

a marketing currently piece channel brand awareness them and be their a are follower by conversation to campaign, driving custom our creating bases. dedicated significant with influencers number among of content and expect We in of

lend medical features Additionally, panel sleep and help across of expert product key create we’re on cardiology, mental us verticals and advisors expertise content. to building our a as bespoke health, to gynecology, such

create to positive in Evie builds We customer a also awareness. launch looking all the we’re drives experience September. recommendation, seeing believe very ambassadorship integrated among the And with reception for to team successfully that pieces are the finally, forward trust we closely fully of to much the success have flywheel consumers this place customer brand and working and and

I’d to it that, to with back like John. And turn

position operational launch. we’re From September the an Thank you, Tyla. standpoint, for a in strong

and partners ready are manufacturing FDA compliant chain to and contract supply flex preparing Our our demand. on are sites

tooling and as hard automation, We’re driving equipment packaging we final process and speak.

order for and device fulfillment personalized, making ready Movano simple, will integrations Software accessible a smart and launch. a experience, ever has operational reality. be to now From develop the outset, a vision for Health to a this and medical and logistics than closer had are we more with

September Ring approaches. We in to affordable that excited about intelligent in very details hands fresh and get launch women experience We’re point all our sharing consumers it are life. to of and for emotionally confident as the attractive app of will look the forward Evie September more price at planned make stages our

that, financials. go J. the to turn With I’ll back over it to

of reported We earnings detailed I’ll Health in to first R&D period. the described primarily quarter you The key loss earlier the few on an compared in share million call. increase million XXXX, to ago the quarter a commercialization related operating can in which in year today’s find items. first But was our John. accelerated $X.X line and website. an loss financial Movano initiatives the operating of Thanks, results $X.X the release, of

Our prior cash $X.X burn with in the line million in period quarters. five was the

net regards public we million and Health capital, underwritten offering Movano of the period. of million warrants In in $X.X shares or to proceeds, in gross common an stock $X.XX raised through

also facility. the addition public In via our ATM we to million $X.X million proceeds raised offering, $XX in net

of at inception. proceeds agreement in $X since August last we we average than ATM raised $X.XX price and you more share per a million the in As year, an recall, net of executed

first the and investments to source XXXX, opportunistic the view total cash, assets million of as ATM million. of cash continue of date. $XX.X pleased quarter the with the of We equivalents execution had $XX.X of and capital and an short-term we to we’re At end

and efficient commentary progress Evie specific financial great well not in we’re as you’ve as through quarterly toward today’s direct-to-consumer providing the well our report, our will be capital quarterly initiatives heard the basis. guidance. the calls, on Ring as BXB We clinical previous doing so as But other launch as on and of making

As begin the are questions. Q&A your section be that glad concludes our formal the remarks, to to call. we of we’d take ready Operator,

you. [Operator Instructions] Thank

questions webcast. there see a Okay, in few operator. I are that can the

don’t why we So start there.

and on Evie see land questions Why’d maybe September John, right the Tyla, Let’s to this can about some you you one. for Stacy think launch. time I on the join in launch?

Why ahead, Tyla. and don’t Stacy and for one? myself Tyla then start with we Go this

Happy Sure. to.

So focused the lighter to tend friends typically months paying thinner. on really And people are what’s during going consumer space. summer not and be on family They’re sort the focus media to attention the with to audiences activities in on vacation. similarly, of shifts fair and and

a color determined timing audience. provide order this launch, to little I’ll we it in So most Add the much way, that engaged Stacy, is and to more September our product. really efficient on the maximize turn you. really over would a

so you much. Thank course. of Yes,

to about do So, well deserve is unique think we form on. people with a coming when user that medical a device to on depend we’re gate building we market, bringing wearable believe not that can they we established be but relatively only grade really know also out a of we’re because hardware the expectations what can that data device and the factor,

at super September us and we’re I’ll our built really too to a way. designed market. excited don’t we’re further. much say the solution to women was in over to through even this want launching And bake it allows John. app to But experience time. So hand it comes I in about meaningful by and And bringing what

Thanks.

may final questions development, risk developing about launching technology. as we’re some related lot you There product we’ve This continue evaluation. want internal on the to launch. September. in there’s continue so we’ve we’ve of testing course we to this. to of developing phases be new being the to very been of been some And add-on well, risks and an this and maybe about our always Just of transparent to we’ll a in Evie beta XX a working Ring to our And be that. through as And said, do months focused for months got with with doing up for a

the upon feel of about that and and seen So have some pretty areas fact identified improve so we now. product we we good are the where right the doing can

overall, And general, launching really in so in feel we September. good about

more few on questions Evie a got the We’ve launch. Okay.

those. address let’s So

through, with how was little And point, a subscription have going that determined the the people signed up strategy? price there’s list the for way we you optimal the talk terms can conversion website, On we’ll Tyla, pricing to also our then email Ring? all a the bit the buying question think do about $XXX that percentage, no in of what what XX,XXX you about clicking see

answer happy that. to Yes, Great.

when for XXX determine comes yet a it another started dollar We tolerance subscription. And from the pricing monthly fatigue was we we there’s their So we to how having of a thought price, when to right really what with standpoint, about research. lot commitment. about women spoke heard about different to

with come satisfies that we to needs women a work business without bill. And price manage to our asking another up so

making people XX,XXX as on is put as And did regarding – point, we to the be with the look possible the competitive to number goal. Additionally, right there, accomplish conversion to place it’s the an tough on at really to who when the where. question to site, and out that’s the and was we landscape up signed else against this the the Evie able price are how a what accessible netted relative that feeling $XXX at out eye

what interested they about will we’re now is I people is sure not right are what think convert. definitely and when that we’re seeing

we’re holiday communicate something at we’ll standpoint single we’ll of think, hoping specifically what digits I And directly. cost a are a an definitely then launch the conversion. because terms them aggregate sort see that in And more in, as around of following hopefully leads from January. lot see that, to And so we’re is in efficient much these with able more

as drive and starting answers and to relationship we able additional and out hope to an closer versus them there that conversion get the to benefit reach scratch. there’s I question. we from be launch that cultivate So continue to

successful Yes. Maybe point also revenue subscription. and we growth we unit think very growth with no that with add, can price at I can $XXX be

BXB, margins solutions our mind. devices we that development should including many think the initiatives that build they that level also think provide We additional our We allowing reinvest be guidance. blood our attractive. have and where don’t to gross other us in and work, and glucose They should very marketing, attractive pressure future we team, formal in other and very a

niche we’ve intend and price of that don’t research be very strongly those and Evie and Ring. a we to this and think feel product, very the lot comfortable subscription Evie a So done point for we about

John, the question. little do Let’s involved filing differentiator? bit this one really you the the the why take Can next on go you process what’s is a want to to including a clearance? and FDA in data, it on the elaborate

J. Sure, Thanks.

off, a of agency documents create stated that for a have to I’ve got and the heart First XXX(k) most fortunately to the as rate Couple SpOX. filing conduct accuracy relate and of per that SpOX, to studies and exceptional when provide to before, multitude there’s the a FDA that, and in the for we our trials ones we and in had important bench the clinical clinical accuracy. guidance, rate we heart

is accuracy. We X was than And data minute within average heart below SpOX well in standard. X% rate less well the error, X.X% that achieved the our per beat

filing. obviously pleased at – results. are most FDA that the documents of And the clinical the important with those So some really with that’s looks the

the safety testing, labs biocompatibility, and reports with feedback. vendors that, where the third-party partner and perform the the many to and cybersecurity documents provide et testing, electrical cetera, to help us we there’s assessments addition in However, around

And is because – be by why partnering some June to in provided of those filing the those this with to reports of final evidence. is we’re who reason waiting going going to this some we’re parties is for on be generating third

are So few with obviously putting up all package generation and all last of where for are finishing we together then happy all, really FDA. that with get the ready to still the now the a we documents we’re in is right the the step. documentation There’s

quality every I of for a has part design that’s both of the of company. device, training think effort lot everything in putting has This the effort. the differentiator course, it’s huge process the it been worth system terms a together on control and a employee of then but medical management been well as

we’re collect the can because the who in amount companies more couple to everyone wanting to the really healthcare, There chronic transition talking And work help and it a a much be from to it’s have companies, discuss try device for management who for to and costs. and seeing done looking is of of us. The than home to healthcare for could more to example, in opportunity home trial several X and in disease Beta from partnership although been others lower transition data are the example, people we’ve where we maybe med from home has got general timely an fashion healthcare coming us to are with expected. much – to more

for really where the those are So about FDA reasons, filing. all we excited we’re with

well and the the Evie Ring of about a terms in. some question analytes in of the we’re and features can little as itself talk We’ve bit see There’s offering here. jump going with maybe both we’re the to few ring you maybe webcast got a the more on a as what about Stacy, Okay. app. the in that

favorite topic. My Sure.

it. about talk to happy So

age would So this sensor wearables. suite you and Ring the with comes to in of come day Evie the expect that

sleep within an So course, points activity. give to away data oxygen the skin are we way rate going take to app. the might that the accelerometer, to various derive the about heart manifest app temperature heart numerous can how and sensor. to rate we’re don’t all measurements one want and going cutting experience sensor, these the too sensors, leap it’s have From way of those blood over different in up I from time. much And stages features

it will we juicy our which great that think is pretty Tyla. that save we to to on meet the suffice of do I and first some say for incredible for the market, for want of bar what’s device. But storyline launch

blood bit development little about pressure on study we’ve clinical maybe seen forward Okay. going expectations what for Michael studies? Leabman, thoughts how to the talk you date algorithm a Can about more in our too? maybe glucose on and

Sure.

we [indiscernible] signal we’ve that conclude chip our I our getting our improve quality. we come signal noted the latest soon. – to fruition patients to seen in how on single blood get hope that that the reliable think means really as to before And this a And to study, which pressure. it, of hope we for variety that was signal

over the next months of data weeks we’ll to refine couple So algorithm, set latest our improves. blood on running be pressure our the it how seeing and

Similarly, And study, glucose going chip, don’t well has begin have performance we’ll into we chip, reasons. integrating has accuracy between all again, chip. the current single as chip located as signals several to as wandering well. down as in One, primarily our which the in one lab it’s our study with heat has we chip, small a the by improved for single because been significantly which seeing helped our the a again the conclude doing we’ve gone package, around

one. analyzing we definitely next data we start on So study to excited embark as as the current the finish the

the X? provide And then the Were we can we on about And there’s again, John Great. have been there if Beta Beta surprises? more pleased any with of betas, X? results any details

the test ones hardware pleased the to issues very ring wearing you that first was see were already the purpose Sure, the we’re we’re reported aware which the and tell was were that of the and overall, the pleased response I to can The of. J. we wearability. ring Yes, really with positive results of of to the beta. and majority really any

we And it to way it’s has really the good parties. expect ring surprises, a good been to real can when no were more testing indicator of there we’ve external out means is see thing. which what broadly been that the a So

As there’s lot we a interest. prep for of Beta X,

X, already a we’ve one and exciting. are more earlier, is partners. there’s or athletic company, form which apparel device few And very in right now discussed to got a med talked we’re going the in broadly, us the that of to in have then to mentioned I beta of go about others the another, We’ve system global address to and more who As two really experience Stacy some participating Beta companies, talking we women’s to been about Beta testing did designed needs app rest the enhancements functionality what X. that filling out the beyond

early very we’re in the process timeframe. the So start of excited July about that late

on lines? the Operator, questions Okay. there are any phone

There are phone the time. over lines at this no questions

Okay. We we the your thank I conclude today. call. think conference for with can Well, that everybody time then

reminder, ir.movano.com. can you investor on to our connected at date events and As Movano stay a and up checking Health out website news by

Thank your teleconference. this today’s for participation. you conclude Ladies and does gentlemen,

lines at have time your and day. disconnect may wonderful You this a