Movano Inc. Files Q1 2024 10-Q Report

TL;DR

Movano Inc. filed its Q1 2024 10-Q, check financials.

AI Summary

Movano Inc. filed its 10-Q for the quarterly period ended March 31, 2024. The company, previously known as Maestro Sensors Inc., is incorporated in Delaware and operates in the electromedical & electrotherapeutic apparatus industry. Its principal executive office is located in Pleasanton, California.

Why It Matters

This filing provides investors with the latest financial performance and operational updates for Movano Inc. during the first quarter of 2024.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing with no immediate red flags or significant new disclosures.

Key Players & Entities

• Movano Inc. (company) — Registrant
• Maestro Sensors Inc. (company) — Former company name
• March 31, 2024 (date) — Quarterly period end date
• Delaware (location) — State of incorporation
• Pleasanton, CA (location) — Principal executive office location

FAQ

Key Financial Figures

• $0.0001 — ich registered Common Stock, par value $0.0001 per share MOVE The Nasdaq Stock Market

Filing Documents

• ea0204497-10q_movano.htm (10-Q) — 545KB
• ea020449701ex31-1_movano.htm (EX-31.1) — 10KB
• ea020449701ex31-2_movano.htm (EX-31.2) — 10KB
• ea020449701ex32-1_movano.htm (EX-32.1) — 5KB
• 0001213900-24-044765.txt ( ) — 4193KB
• move-20240331.xsd (EX-101.SCH) — 44KB
• move-20240331_cal.xml (EX-101.CAL) — 36KB
• move-20240331_def.xml (EX-101.DEF) — 200KB
• move-20240331_lab.xml (EX-101.LAB) — 378KB
• move-20240331_pre.xml (EX-101.PRE) — 201KB
• ea0204497-10q_movano_htm.xml (XML) — 477KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION 1

Financial Statements

Item 1. Financial Statements 1

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 19

Quantitative and Qualitative Disclosure About Market Risk

Item 3. Quantitative and Qualitative Disclosure About Market Risk 24

Controls and Procedures

Item 4. Controls and Procedures 24

– OTHER INFORMATION

PART II – OTHER INFORMATION 25

Legal Proceedings

Item 1. Legal Proceedings 25

Risk Factors

Item 1A. Risk Factors 25

Recent Sales of Unregistered Securities; Use of Proceeds from Registered Securities

Item 2. Recent Sales of Unregistered Securities; Use of Proceeds from Registered Securities 25

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 25

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 25

Other Information

Item 5. Other Information 25

Exhibits

Item 6. Exhibits 26

SIGNATURES

SIGNATURES 27 EXHIBIT INDEX i

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Movano Inc. Condensed Consolidated Balance Sheets (in thousands, except share and per share data) (Unaudited) March 31, December 31, 2024 2023 ASSETS Current assets: Cash and cash equivalents $ 2,145 $ 6,118 Payroll tax credit, current portion 514 450 Vendor deposits 396 399 Inventory 1,064 1,114 Prepaid expenses and other current assets 326 442 Total current assets 4,445 8,523 Property and equipment, net 299 342 Payroll tax credit, noncurrent portion 64 169 Other assets 327 387 Total assets $ 5,135 $ 9,421 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Current liabilities: Accounts payable $ 3,977 $ 3,118 Deferred revenue 251 1,252 Other current liabilities 2,341 1,529 Total current liabilities 6,569 5,899 Noncurrent liabilities: Early exercised stock option liability 11 23 Other noncurrent liabilities 33 50 Total noncurrent liabilities 44 73 Total liabilities 6,613 5,972 Commitments and contingencies (Note 10) Stockholders' equity (deficit): Preferred stock, $ 0.0001 par value, 5,000,000 shares authorized at March 31, 2024 and December 31, 2023; no shares issued and outstanding at March 31, 2024 and December 31, 2023 — — Common stock, $ 0.0001 par value, 150,000,000 shares authorized at March 31, 2024 and December 31, 2023; 56,121,579 and 55,848,272 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively 6 6 Additional paid-in capital 128,616 127,823 Accumulated deficit ( 130,100 ) ( 124,380 ) Total stockholders' equity (deficit) ( 1,478 ) 3,449 Total liabilities and stockholders' equity (deficit) $ 5,135 $ 9,421 See accompanying notes to condensed consolidated

financial statements

financial statements. 1 Movano Inc. Condensed Consolidated Statements of Operations and Comprehensive Loss (in thousands, except share and per share data) (Unaudited) Three Months Ended March 31, 2024 2023 Revenue $ 852 $ — COSTS AND EXPENSES: Cost of revenue 1,215 — Research and development 2,887 3,894 Sales, general and administrative 2,504 3,309 Total costs and expenses 6,606 7,203 Loss from operations ( 5,754 ) ( 7,203 ) Other income (expense), net: Interest and other income, net 34 107 Other income (expense), net 34 107 Net loss and total comprehensive loss $ ( 5,720 ) $ ( 7,096 ) Net loss per share, basic and diluted $ ( 0.10 ) $ ( 0.19 ) Weighted average shares used in computing net loss per share, basic and diluted 56,023,273 37,541,070 See accompanying notes to condensed consolidated

financial statements

financial statements. 2 Movano Inc. Condensed Consolidated Statements of Stockholders' Equity (Deficit) (in thousands, except share data) (Unaudited) Additional Total Common Stock Paid-In Accumulated Stockholders' Three Months Ended March 31, 2023 Shares Amount Capital Deficit Equity Balance at December 31, 2022 33,659,460 $ 3 $ 103,009 $ ( 95,097 ) $ 7,915 Stock-based compensation — — 724 — 724 Issuance of common stock upon public offering, net of issuance costs 5,340,600 1 5,179 — 5,179 Issuance of warrants upon public offering — — 1,473 — 1,473 Issuance of common stock 2,131,952 — 2,805 — 2,805 Issuance of common stock upon exercise of options 245,855 — 109 — 109 Vesting of early exercised stock options — — 34 — 34 Net loss — — — ( 7,096 ) ( 7,096 ) Balance at March 31, 2023 41,377,867 $ 4 $ 113,333 $ ( 102,193 ) $ 11,144 Total Additional Stockholders' Common Stock Paid-In Accumulated Equity Three Months Ended March 31, 2024 Shares Amount Capital Deficit (Deficit) Balance at December 31, 2023 55,848,272 $ 6 $ 127,823 $ ( 124,380 ) $ 3,449 Stock-based compensation — — 617 — 617 Issuance of common stock 273,307 — 164 — 164 Vesting of early exercised stock options — — 12 — 12 Net loss — — — ( 5,720 ) ( 5,720 ) Balance at March 31, 2024 56,121,579 $ 6 $ 128,616 $ ( 130,100 ) $ ( 1,478 ) See accompanying notes to condensed consolidated

financial statements

financial statements. 3 Movano Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (Unaudited) Three Months Ended March 31, 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ ( 5,720 ) $ ( 7,096 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 52 38 Stock-based compensation 617 724 Noncash lease expense 56 ( 3 ) Changes in operating assets and liabilities: Payroll tax credit 41 90 Inventory 50 — Prepaid expenses, vendor deposits and other current assets 256 ( 161 ) Accounts payable 865 ( 53 ) Deferred revenue ( 1,001 ) — Other current and noncurrent liabilities 653 381 Net cash used in operating activities ( 4,131 ) ( 6,080 ) CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment ( 6 ) ( 13 ) Net cash used in investing activities ( 6 ) ( 13 ) CASH FLOWS FROM FINANCING ACTIVITIES: Issuance of common stock and warrants upon February 2023 public offering, net of issuance costs — 6,689 Issuance of common stock, net of issuance costs 164 2,805 Issuance of common stock upon exercise of stock options — 109 Net cash provided by financing activities 164 9,603 Net (decrease)/increase in cash and cash equivalents ( 3,973 ) 3,510 Cash and cash equivalents at beginning of period 6,118 10,759 Cash and cash equivalents at end of period $ 2,145 $ 14,269 NONCASH INVESTING AND FINANCING ACTIVITIES: Vesting of common stock issued upon early exercise $ 12 $ 34 Unpaid issuance costs recorded in accounts payable $ — $ 36 Unpaid issuance costs recorded in other current liabilities $ 137 $ — Warrants issued upon February 2023 public offering $ — $ 1,473 See accompanying notes to condensed consolidated

financial statements

financial statements. 4 Movano Inc. Notes to Condensed Consolidated Financial Statements For the three months ended March 31, 2024 and 2023 (Unaudited) Note 1 – Business Organization, Nature of Operations Movano Inc., dba Movano Health (the "Company", "Movano", "Movano Health", "we", "us" or "our") was incorporated in Delaware on January 30, 2018 as Maestro Sensors Inc. and changed its name to Movano Inc. on August 3, 2018. The Company is an early-stage technology company and is developing a platform to deliver purpose-driven healthcare solutions at the intersection of medical and consumer devices. Movano is on a mission to make medical grade data more accessible and actionable for all. The Company's solutions provide vital health information, including heart rate, heart rate variability (HRV), sleep, respiration rate, temperature, blood oxygen saturation (SpO 2 ), steps, and calories as well as glucose and blood pressure data, in a variety of form factors to meet individual style needs and give users actionable feedback to improve their quality of life. On April 28, 2021, the Company established Movano Ireland Limited, organized under the laws of Ireland, as a wholly owned subsidiary of the Company. Operations and activity at the wholly owned subsidiary were not significant for the three months ended March 31, 2024 and 2023, respectively. Since inception, the Company has engaged in only limited research and development of product candidates and underlying technology and the commercialization of the Company's first commercial product, the Evie Ring. During the three months ended March 31, 2024, the Company completed the development of the Evie Ring and recorded revenue for this product. The Company has incurred losses from operations and has generated negative cash flows from operating activities since inception. The Company expects to continue to incur net losses for the foreseeable future as it continues the development of its technology. The Com

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