Executive Summary / Key Takeaways

• Dual-Market Strategy with Medical Validation: Movano Health is uniquely positioned to serve both direct-to-consumer (D2C) wellness and business-to-business (B2B) medical markets with its Evie Ring and FDA-cleared EvieMED Ring, leveraging its medical device infrastructure as a significant competitive advantage.
• Proprietary Technology Driving Future Growth: The company's ultra-compact System-on-a-Chip (SoC) and millimeter-wave (mmWave) radio frequency (RF) technology have demonstrated promising accuracy in cuffless blood pressure monitoring, with ongoing clinical trials aimed at non-invasive glucose monitoring, representing substantial long-term market opportunities.
• Operational Enhancements and Strategic Partnerships: Following initial launch challenges, Movano Health has implemented significant operational improvements for its Evie Ring and is actively engaging with major healthcare partners for EvieMED, including a pilot program with a large healthcare company in Q1 2025.
• Liquidity Challenges Amidst Strategic Review: Despite recent capital infusions, Movano Health faces ongoing liquidity concerns, as evidenced by a "going concern" warning and recent bridge financing, prompting a strategic review process to maximize shareholder value.
• Improving Financial Performance but Continued Losses: While the company reported reduced operating losses and R&D expenses in the first half of 2025, it continues to incur net losses, reflecting its early commercialization stage and heavy investment in technology development.

A New Era in Health Monitoring: Movano Health's Vision

Movano Inc. (NASDAQ:MOVE), operating as Movano Health, is carving a distinct niche in the rapidly expanding wearable health technology market. Founded in 2018, the company's core mission is to bridge the gap between consumer wellness devices and medical-grade data, aiming to deliver purpose-driven healthcare solutions. This strategy positions Movano Health at a critical intersection, seeking to provide trusted, high-quality health information in user-friendly form factors. The wearables industry is experiencing rapid growth, with smart rings emerging as a particularly attractive segment. While major tech companies sell over 100 million wellness devices annually, the smart ring market is still nascent, with an estimated 1 million units sold in 2024. This burgeoning market, where the leading smart ring competitor is on track for approximately $500 million in revenue in 2024, presents a significant opportunity for specialized players like Movano Health.

The company's overarching strategy centers on leveraging its foundational strengths in differentiated technology to capture market share in both direct-to-consumer (D2C) and business-to-business (B2B) segments. This dual approach, underpinned by a commitment to medical device standards, aims to establish Movano Health as a unique and valuable asset in the health tech landscape. The company's journey began with the commercial launch of the Evie Ring in November 2023, a wellness wearable designed specifically for women, which quickly garnered strong interest.

Technological Edge: The Power of Proprietary RF and AI

Movano Health's competitive advantage is deeply rooted in its proprietary technology, particularly its ultra-compact System-on-a-Chip (SoC) and advanced millimeter-wave (mmWave) radio frequency (RF) and AI technology. This SoC, measuring just 4 x 6.7 millimeters, is designed for advanced health monitoring, including future applications in cuffless blood pressure and continuous glucose monitoring (CGM) systems. The company has invested heavily in this technology, with the "vast majority" of its research and development (R&D) dollars allocated to improving its risk profile and commercial opportunities.

The tangible benefits of this technology are already evident in clinical results. In a blood pressure clinical study conducted in October 2023, a prototype incorporating the SoC achieved a Mean Absolute Difference (MAD) of 5.9 mmHg, which is "well below the FDA guidance of 7 mmHg" required for wearable, cuffless blood pressure measuring devices. This level of accuracy was a "clear catalyst" for a strategic seed investment from a Tier 1 multibillion-dollar medical device company. Furthermore, in a Q1 2024 hypoxia trial, the Evie Ring demonstrated exceptional accuracy for pulse rate and blood oxygen saturation (SpO2), achieving a root mean square error (RMSE) of 2.46%, "well within the FDA guidance of 3.5%." Notably, the ring's accuracy "exceeded that of 2 commercially available hospital-grade reference pulse oximeters, one of which failed to meet the FDA standard for accuracy." This demonstrates the potential for Movano's technology to provide superior data fidelity compared to traditional optical sensors.

Movano Health's R&D initiatives extend beyond current offerings. The company completed its seventh cuffless blood pressure clinical trial in November 2024, utilizing an updated wrist wearable featuring "12 additional mmWave antennas" designed for "enhanced data collection with less impact of placement" and a "slimmer design." This device also monitors pulse rate, SpO2, respiration rate, and ECG waveforms. The company plans further clinical work, including a June 2024 study using an arterial line as a precursor to an FDA pivotal study, and is evaluating AI-based individual calibration methods to enhance future performance. The long-term goal is to bring a Class II FDA-cleared device to market that includes CGM and cuffless blood pressure monitoring capabilities, addressing massive market opportunities given that half of U.S. adults over 20 have high blood pressure or are pre-hypertensive.

Dual-Market Strategy: Evie Ring (D2C) and EvieMED (B2B)

Movano Health's strategy revolves around a dual-market approach, serving consumers directly with the Evie Ring and healthcare enterprises with the EvieMED Ring. The Evie Ring, a wellness wearable for women, launched in November 2023, offering a comprehensive suite of health and wellness metrics. Its "award-winning open ring design, which can flex to accommodate any swelling," is a key differentiator, catering to comfort and wearability.

Initial demand for the Evie Ring "far exceeded expectations," but the company faced "operational inefficiencies and learnings early on," including delivery delays that led to cancellations and impacted revenue. As a result, Movano Health temporarily paused order intake. The company has since implemented significant operational improvements, including enhanced production yields, logistics, and customer service, bolstered by a new team and an AI-powered chatbot. Product enhancements include improved algorithms for sleep, heart rate in motion, and steps, along with an expanded AI-generated insights engine. The company plans to relaunch Evie Ring orders with ample inventory and expects to release an Android version of the app by Black Friday in November 2024. A brand partnership with digital creator Heidi D'Amelio and a revised 60-day return policy are also part of the D2C strategy.

On the business-to-business front, the EvieMED Ring represents a significant strategic pivot. Movano Health received FDA 510(k) clearance for the pulse oximetry feature in its EvieMED Ring in November 2024, making it a medical device. This clearance is a "major milestone" and positions Movano Health as "one of the first patient wearables with FDA clearance on the entire system, both hardware and software." The company asserts that this medical device foundation provides a "highly differentiated proposition for major healthcare partners" and that "it would take years and many millions of dollars in investment for competitors to potentially transition from a wellness to medical device."

EvieMED is expected to unlock multi-billion dollar opportunities in clinical trials, post-clinical trial management, and remote patient monitoring. Movano Health is in active discussions with a major global pharmaceutical company, a clinical research organization (CRO), and has entered the agreement phase with a large healthcare company for a pilot in Q1 2025, utilizing EvieMED as part of a metabolic solution for chronic disease. The clinical trial market for FDA-cleared wearables is estimated at up to $5 billion annually, while chronic disease management represents a $20 billion per year market opportunity.

Financial Performance and Liquidity: A Turnaround in Progress

Movano Health has consistently incurred losses from operations and generated negative cash flows since its inception, reflecting its heavy investment in R&D and early commercialization efforts. For the six months ended June 30, 2025, the company reported a net loss of $8.40 million, an improvement from $11.90 million in the prior year. Revenue for the same period decreased by $0.60 million to $0.30 million, primarily due to reduced marketing efforts and lower sales volume for the Evie Ring. However, operating expenses saw reductions, with research and development expenses decreasing by $2 million and sales, general and administrative expenses by $1.60 million for the six months ended June 30, 2025, largely due to lower headcount and professional fees.

Liquidity remains a critical concern for Movano Health. As of June 30, 2025, the company had $2.10 million in cash and cash equivalents and explicitly stated that these funds would "not be sufficient to fund our projected operating requirements beyond 2025." This led to the company securing $1.50 million in bridge financing on August 6, 2025, at a 12% interest rate, secured by all company assets, including intellectual property, with proceeds intended to "continue its pursuit of strategic alternatives." The company's cash burn in Q3 2024 was approximately $5.6 million.

Despite these challenges, a $24.1 million private placement in April 2024, which included a $3 million strategic seed investment, provided a crucial capital infusion. A turnkey agreement with its production partner is expected to "free up both working capital and people resources" by shifting inventory purchasing to the manufacturer, which should improve the company's cash flow profile.

Competitive Landscape: Carving a Niche in a Crowded Market

Movano Health operates in a competitive landscape dominated by larger technology and medical device companies. Key direct competitors include Apple (AAPL) (with its Apple Watch), Garmin (GRMN) (fitness wearables), Oura (smart rings), and Dexcom (DXCM) (continuous glucose monitoring). While these competitors possess greater scale, established brand recognition, and robust ecosystems, Movano Health aims to differentiate itself through its specialized focus and technological advancements.

Movano Health's medical device foundation for EvieMED is a significant differentiator. John Mastrototaro, CEO of Movano Health, highlighted that the company "will be the only player in the space with a ring that effectively serves both B2C and B2B markets built on the reliable foundation of a medical device company." This contrasts with competitors who primarily offer wellness devices, requiring substantial investment and time to achieve medical device clearances. The EvieMED Ring's FDA clearance for pulse oximetry is a key advantage, as it is "one of the first patient wearables with FDA clearance on the entire system, both hardware and software," unlike competitors who may only have clearance for individual algorithms.

The company's proprietary RF chip and open ring design also provide competitive advantages. The open ring design offers superior comfort and adaptability, accommodating natural fluctuations in finger size, which sets it apart from other smart rings. The demonstrated accuracy of Movano's RF technology in blood pressure and SpO2 monitoring, surpassing even some hospital-grade devices, positions it favorably against competitors relying on traditional optical sensors. While Apple and Garmin boast superior market share and growth rates due to their scale and broad appeal, Movano's targeted approach to women's health in D2C and its medical device focus in B2B allow it to address underserved segments. In the specialized glucose monitoring space, Dexcom holds a strong position with established medical credibility; however, Movano's aim for an integrated, multi-metric wearable could offer a more comprehensive solution.

Risks and Challenges: Hurdles on the Path to Growth

Despite its promising technology and strategic vision, Movano Health faces significant risks and challenges. The most pressing is the "substantial doubt about the Company's ability to continue as a going concern within one year after the date that the financial statements are issued," given its limited cash reserves as of June 30, 2025. This necessitates securing additional financing, which may not be available on acceptable terms or at all, potentially forcing delays or reductions in R&D and commercialization efforts.

The company has also faced Nasdaq listing compliance issues, including notices for delayed 10-Q filings for Q1 and Q2 2025 and failing to meet the minimum bid price requirement. While Movano Health filed its Q1 and Q2 2025 10-Q reports by September 24, 2025, and implemented a 1-for-15 reverse stock split in October 2024 to address the bid price, continued compliance remains a factor. Material weaknesses in internal controls over financial reporting, identified as of June 30, 2025, also pose a risk. Furthermore, the company is dependent on third-party manufacturers, and any supply interruptions could adversely affect its programs. An investigation into apparent stock manipulation following the October 2024 reverse stock split highlights additional operational and reputational risks.

Outlook: An Inflection Point for Future Value

Movano Health stands at a pivotal juncture, with management expressing optimism about the future. John Mastrototaro, CEO, stated, "We are nearing an inflection point for the company as we close in on key milestones. We are laser focused on the expansion of our D2C business, bullish on the B2B opportunities for EvieMED, and optimistic about the potential of our RF chip." The FDA clearance of EvieMED is expected to be a significant catalyst, allowing the company to "lean into driving higher sales volumes, both B2B and D2C into year-end 2024 and beyond."

The planned Q1 2025 pilot program with a large healthcare company for EvieMED signals concrete progress in B2B commercialization. The company anticipates bringing its cuffless blood pressure device to market "within the next couple of years or so," following continued clinical trials and product development. Movano Health's commitment to judicious capital deployment and managing cash burn, coupled with its focus on technological innovation and strategic partnerships, underpins its long-term growth strategy. The ongoing process to explore strategic alternatives initiated by the Board of Directors in May 2025 further underscores the company's commitment to maximizing shareholder value.

Conclusion

Movano Health is a compelling investment story centered on its innovative approach to health monitoring, bridging the consumer wellness and medical device markets. Its proprietary millimeter-wave RF technology and ultra-compact SoC represent a significant technological moat, offering superior accuracy in vital sign monitoring, as demonstrated by clinical results for SpO2 and cuffless blood pressure. The FDA clearance of the EvieMED Ring positions the company uniquely to capitalize on multi-billion dollar B2B opportunities in clinical trials and remote patient monitoring, areas where its medical device foundation provides a distinct competitive advantage over wellness-only rivals.

While the company faces immediate liquidity challenges and the need for further financing, its strategic focus on operational improvements, D2C expansion, and accelerated R&D for "holy grail" metrics like non-invasive glucose and continuous blood pressure monitoring offers substantial long-term growth potential. Investors should closely monitor Movano Health's ability to secure additional capital, execute its B2B partnerships, and continue advancing its technological roadmap. The successful realization of these initiatives, particularly the commercialization of its advanced RF-enabled devices, could fundamentally transform its financial trajectory and unlock significant value in the evolving health tech landscape.