Movano, Inc. Q3 FY2024 earnings call

Key Points:

• Ongoing successful sale and fulfillment of Evie Rings since September 17 back-in-stock announcement.
• Continuing work with FDA for 510(k) clearance of EvieMED Ring, with responses to agency questions provided in late October and waiting for additional inquiries.
• Preparing to deliver first B2B commercial opportunities for EvieMED post-FDA clearance.
• Analyzing results of recent blood pressure clinical trial with updated wearable device; completed seventh cuffless blood pressure clinical trial and several glucose studies.
• CMO Tyla Bucher detailed DTC plans: organic marketing success, brand partnership with Heidi D'Amelio, launch of Android app, revised 60-day return policy, participation in holiday sweepstakes, and improvements to insights engine.
• Product development beyond Evie and EvieMED: multi-analyte sensing, planning clinical trials for respiration rate, core temperature, sleep disturbances.
• Engaged with potential B2B partners for EvieMED in various healthcare use cases.
• Implemented 1-for-15 reverse stock split on October 29 to regain Nasdaq compliance, and investigating stock manipulation around the split.

No specific product segment financial performance with absolute terms and revenue contribution % provided in the transcript.

Forward-Looking Statements:

• Anticipation of FDA clearance for EvieMED Ring to drive B2B and D2C sales into year-end 2024 and beyond.
• Continued focus on managing resources and capital deployment, with incremental spend for Android app launch and marketing during holiday season.
• Expectation of B2B opportunities for EvieMED to unfold post-FDA clearance.

Risks:

• Investigation into potential stock manipulation between reverse split announcement and effective date.
• Inherent risks and uncertainties in forward-looking statements detailed in SEC filings, including Form 10-Q and 10-K.

Q&A:

• Q: About cuffless blood pressure measurement program next steps and data release.

A: John Mastrototaro discussed additional antennas in design, ongoing data review, upcoming trials, and expectation of market entry in next couple of years.

• Q: Android app functionality and market size.

A: John and Tyla stated Android app will have same functionality as iOS, Android market is ~40%, and it's a highly requested feature.

• Q: Operating expenses in fourth quarter.

A: J. Cogan mentioned focused spend management, incremental spend for Android app and marketing, but continued focus on cash burn.

• Q: 510(k) process for EvieMED.

A: John Mastrototaro said FDA had questions on labeling and medical device aspects, responses provided, waiting for further feedback.

• Q: New entrants in smart rings concern.

A: John Mastrototaro said Movano is well-positioned with medical device roots, open design, and accuracy focus.

• Q: Evie Rings relaunch execution learnings and holiday plans.

A: Tyla Bucher discussed learning women trust the device, focus on improving experience, organic marketing, upcoming paid strategy, and Android app release.

• Q: EvieMED commercial opportunities.

A: Michael Soule mentioned agreement phase with healthcare company for Q1 2025 pilot, engagement with beta partners, and 510(k) clearance unlocking B2B initiatives.

• Q: Valuation and visibility.

A: J. Cogan and John Mastrototaro discussed capital market challenges, visibility efforts like industry meetings, and working to increase awareness.