Movano Inc. (NASDAQ:MOVE) is an early-stage technology company developing a platform to deliver purpose-driven healthcare solutions at the intersection of medical and consumer devices. The company's mission is to make medical-grade data more accessible and actionable for all. Movano's initial commercial product, the Evie Ring, combines health and wellness metrics to give users a comprehensive view of their health, including heart rate, heart rate variability (HRV), blood oxygen saturation (SpO2), respiration rate, skin temperature variability, period and ovulation tracking, activity tracking, sleep monitoring, and mood tracking.
Movano was incorporated in 2018 and is headquartered in Pleasanton, California. The company has a limited operating history, having incurred net losses of $29.3 million in 2023 and $5.7 million in the first quarter of 2024 on no revenue in 2023 and $0.9 million in revenue in Q1 2024. Movano's cash and cash equivalents totaled $2.1 million as of March 31, 2024, which is not expected to be sufficient to fund operations for the next twelve months.
In April 2024, Movano raised $24.1 million in a private placement, including a strategic investment from a Tier 1 medical device company. This capital infusion is expected to provide the resources needed to drive the company's direct-to-consumer (D2C) Evie Ring business, launch the Evie Med product line, target the business-to-business (B2B) market, and accelerate clinical trials related to Movano's proprietary radio frequency (RF) technology.
Business Overview
Movano is developing a platform to deliver purpose-driven healthcare solutions that combine medical-grade data and consumer-friendly design. The company's initial commercial product, the Evie Ring, is a wearable device designed specifically for women that provides a comprehensive view of their health data. The Evie Ring tracks a variety of health metrics, including heart rate, HRV, SpO2, respiration rate, skin temperature variability, period and ovulation tracking, activity tracking, sleep monitoring, and mood tracking.
In addition to the Evie Ring, Movano is developing the Evie Med Ring, a medical device version of the Evie Ring that the company plans to launch under the Evie Med brand. The Evie Med Ring is designed to provide clinically validated data, with Movano currently seeking FDA 510(k) clearance for the device's pulse oximetry feature. The company expects a decision from the FDA in July 2024.
Movano is also working on developing one of the smallest patented and proprietary System-on-a-Chip (SoC) designed specifically for blood pressure or continuous glucose monitoring systems. The company is currently conducting clinical trials with the SoC and developing algorithms that, if successful, will enable the development of wearables that can monitor glucose non-invasively and blood pressure without a cuff.
Financials
Movano reported revenue of $0.9 million in the first quarter of 2024, a significant increase from $0 in the prior-year period. This revenue was generated from the launch of the Evie Ring in late 2023. However, the company incurred a net loss of $5.7 million in Q1 2024, compared to a net loss of $7.1 million in the same period of 2023.
The increase in revenue was offset by higher costs, including $1.2 million in cost of revenue and $2.9 million in research and development expenses. Sales, general, and administrative expenses decreased to $2.5 million in Q1 2024 from $3.3 million in the prior-year quarter.
Movano's cash burn in the first quarter of 2024 was $4.1 million, which included costs related to the Evie Ring launch, expenses for the FDA submission, and other timing considerations. As of March 31, 2024, the company had $2.1 million in cash and cash equivalents, which is not expected to be sufficient to fund operations for the next twelve months.
However, the company's recent $24.1 million private placement, including a strategic investment from a Tier 1 medical device company, is expected to provide the necessary resources to drive the Evie Ring D2C business, launch the Evie Med product line, target the B2B market, and accelerate clinical trials related to Movano's proprietary RF technology.
Outlook
During the first quarter of 2024, Movano shipped 5,305 Evie Rings and reported $852,000 in revenue. The company faced some operational challenges during the initial launch, including delays in delivery timelines that led to a number of customer cancellations. However, Movano is now focused on optimizing its production processes, improving delivery times, and enhancing the overall customer experience.
To address these issues, the company is working with its manufacturing partners to ensure ample inventory before taking new orders, and it has bolstered its customer service capacity, including the implementation of an AI-powered customer response chatbot. These efforts are expected to position Movano well for an expanded launch of the Evie Ring and the eventual launch of the Evie Med product line.
Regarding the Evie Med, Movano recently submitted new clinical trial results to the FDA for its pulse oximetry feature, which the company expects will support the 510(k) clearance decision in July 2024. The company is also engaged with strategic partners in the pharmaceutical, medical device, and payer channels, who have expressed interest in the enterprise opportunities that the Evie Med clearance could unlock.
In addition to the Evie Ring and Evie Med, Movano continues to focus on the development of its proprietary RF technology, which includes a breakthrough System-on-a-Chip (SoC) designed for blood pressure and glucose monitoring. The company recently announced positive results from a blood pressure clinical study and is preparing for its next study, which will include an arterial line to provide continuous data, a key step towards an FDA pivotal study.
Risks and Challenges
Movano faces several risks and challenges as an early-stage technology company, including:
1. Limited operating history and ability to achieve profitability
Movano has a limited operating history and has incurred significant losses since its inception, with no assurance of future profitability.2. Ability to continue as a going concern
The company's cash and cash equivalents may not be sufficient to fund operations for the next twelve months, raising substantial doubt about its ability to continue as a going concern.3. Successful development and commercialization of products
Movano's ability to generate revenue is dependent on the successful development, regulatory approval, and commercialization of its Evie Ring, Evie Med, and other potential products.4. Competitive landscape
Movano faces competition from established medical device companies, consumer electronics manufacturers, and other emerging wearable technology companies.5. Regulatory approvals
Obtaining necessary regulatory approvals, such as the FDA 510(k) clearance for the Evie Med, is critical for the company's success and may be subject to delays or denials.6. Dependence on third-party manufacturers and suppliers
Movano relies on third-party manufacturers and suppliers, which could disrupt its operations or impact product quality and availability.7. Intellectual property protection
The company's ability to protect its proprietary technology and intellectual property is crucial to its competitive position.Conclusion
Movano Inc. is an early-stage technology company with a promising portfolio of wearable health solutions, including the Evie Ring and the Evie Med. The company's recent $24.1 million private placement, including a strategic investment from a Tier 1 medical device company, provides the necessary resources to drive the Evie Ring D2C business, launch the Evie Med product line, target the B2B market, and accelerate clinical trials related to Movano's proprietary RF technology.
While Movano faces several risks and challenges as an early-stage company, its focus on delivering medical-grade data in consumer-friendly form factors, its progress in securing FDA clearance for the Evie Med, and its development of innovative RF-based health monitoring solutions position the company for potential growth in the wearable health technology market. Investors should closely monitor Movano's execution on its strategic priorities and the company's ability to navigate the regulatory and competitive landscape in the coming quarters.