Vyome Holdings, Inc. Q3 FY2024 earnings call

• Cost Reduction: Over 40% lower operating expenses for the first nine months of 2024 compared to the previous year.
• Lap-Band 2.0 FLEX: Completed early launch, received Health Canada approval, positive surgeon feedback, patient-centric website traffic, and effective co-op marketing programs.
• NIH Grant: Awarded $241,000 supplementary grant from NIH for DBSN device studies, total NIH awards to date $1.15 million.
• Merger with Vyome: Board recommended merger, asset sale to Biorad for $5.16 million, and regained NASDAQ compliance via reverse stock split.
• Obesity Market: Believes GLP-1s' health economic cost and long-term tolerability increase the market opportunity for the Lap-Band, especially with the newly launched Lap-Band 2.0 FLEX.

In the third quarter of 2024, ReShape Lifesciences' revenue totaled $2.3 million, which is a 6% increase compared to the third quarter of 2023. For the nine months ended September 30, 2024, revenue was $6.2 million, a 7% contraction from the same period in 2023. Gross profit for the three months ended September 30, 2024, was $1.4 million, with a gross profit margin of 63%, up from 60% in the same period of 2023. The nine months ended September 30, 2024, had a gross profit of $3.7 million with a margin of 60%, compared to 55% in the same period of 2023. Sales and marketing expenses for the three months ended September 30, 2024, decreased by $1.1 million (60%) to $700,000, and for the nine months, it decreased by $3.7 million (61%) to $2.4 million. General administrative expenses had slight changes, and research and development expenses were reduced due to cost-cutting efforts.

• The merger with Vyome presents an opportunity for shareholders to capitalize on Vyome's go-forward business.
• Expect Vyome to execute well in 2025, with potential upside beyond the initial valuation of the combined entity.

Actual results could differ materially from forward-looking statements due to known and unknown risks, uncertainties, and other factors as described in the company's SEC filings, including Risk Factors in the most recent Annual Report on Form 10-K.

Q: Jason McCarthy from Maxim Group asked about Vyome's 1953 gel, malignant fungating wounds, programs like 1908 and uveitis indication, and ReShape's outlook vs GLP-1s.

A: Krishna Gupta deferred on detailed science but mentioned it's an immuno-inflammation therapy example, and Paul Hickey discussed ReShape's gains due to GLP-1s' tapering effects and the underserved obesity market