Vyome Holdings, Inc. Q1 FY2024 earnings call

• Cost Reduction Efforts: Implemented additional cost reductions expected to result in lower operating expenses of approximately $8 million in 2024, a more than 50% reduction over 2023. This includes reductions in consulting services, staff, ReShape Care program, incentive compensation, etc. - Lap-Band 2.0 FLEX Launch: Limited launch is progressing well with positive surgeon feedback. The new FLEX technology is designed to improve patient experience, alleviate discomfort from swallowing large food pieces, and eliminate the need for in-office band emergent adjustments. Working towards regulatory approvals in Canada and EU. - M&A Activity: Engaged Maxim Group on an exclusive basis to assist in finding strategic and synergistic M&A opportunities. - GLP-1 Impact: Recognized that GLP-1 usage has limitations related to cost, accessibility, and long-term tolerability, but believes Lap-Band market opportunity will increase as GLP-1 patients may consider bariatric surgery. - Intellectual Property: Received Notice of Allowance and patent issue for intragastric balloon system, building defensive moat around product portfolio.

For the first quarter ended March 31, 2024, revenue totaled $1.9 million, which is a 15% contraction ($300,000 decrease) compared to the same period in 2023. Gross profit was $1.2 million for both the 3 months ended March 31, 2024, and 2023. The gross profit as a percentage of total revenue for the 3 months ended March 31, 2024, was 60% compared to 54% for the same period in 2023. The primary driver of the revenue contraction was a decrease in sales volume due to GLP-1 drugs, while the increase in gross profit percentage was due to reduction in overhead-related costs, primarily payroll.

• Anticipate revenue to increase in the remainder of 2024. - Expect continued reduction in operating expenses. - Anticipate full U.S. launch of Lap-Band 2.0 FLEX in 2024, which should contribute to increased sales going forward into 2025.

• GLP-1 Limitations: Weight loss due to GLP-1 drug usage has limitations related to cost, accessibility, and low long-term tolerability. - Market Uncertainties: Global obesity market is changing, and uncertainties exist regarding adoption of Lap-Band and regulatory approvals. - M&A Execution Risks: Risks associated with finding the right strategic and synergistic M&A partner and integrating them successfully.

Q: No questions were raised during the call A: No questions were posed by attendees