Core Viewpoint - ReShape Lifesciences has announced a public offering of 1,054,604 shares of common stock at a price of $2.50 per share, expecting gross proceeds of approximately $2.6 million before expenses [1]. Group 1: Offering Details - The public offering is being conducted under an effective shelf registration statement filed with the SEC, which was declared effective on May 14, 2025 [3]. - Maxim Group LLC is acting as the sole placement agent for this offering [2]. - The offering is expected to close on or about June 9, 2025, pending customary closing conditions [1]. Group 2: Company Overview - ReShape Lifesciences is a leading company in weight loss and metabolic health solutions, offering a range of products and services for obesity and metabolic disease management [4]. - The company’s FDA-approved products include the Lap-Band® systems, which provide minimally invasive treatment options for obesity, and the ReShape Diabetes Neuromodulation system, which targets glucose regulation [4]. - The Obalon® balloon technology is another innovative product that offers a non-surgical method for weight loss [4].

Financial Data and Key Metrics Changes - Revenue for the year ended December 31, 2024, totaled $8,000,000, representing a contraction of 8% or $700,000 compared to the same period in 2023 [14] - Gross profit for the year ended December 31, 2024, was $5,100,000, a decrease of $500,000 or 9% from $5,500,000 in 2023 [14] - Gross profit margin slightly decreased to 63.2% from 63.9% in the previous year [14] - Operating expenses were reduced by almost 42% compared to the previous year, excluding M&A related costs [3][12] Business Line Data and Key Metrics Changes - Sales and marketing expenses decreased by $4,600,000 or 60% to approximately $3,000,000 compared to $7,500,000 in 2023, primarily due to a reduction in advertising and marketing expenses [15] - General and administrative expenses decreased by approximately $3,400,000 or 33% to approximately $6,900,000 compared to $10,300,000 in 2023 [15] - Research and development expenses decreased by $500,000 or 22% to $1,800,000 compared to $2,300,000 in 2023 [16] Market Data and Key Metrics Changes - The introduction of GLP-1 pharmaceuticals impacted revenue negatively, contributing to the overall revenue contraction [14] Company Strategy and Development Direction - The company is focused on a disciplined approach to executing a cost reduction plan while pursuing growth initiatives [3] - A significant partnership was established with Motion Informatics to distribute next-generation neuromuscular rehabilitation devices, expanding the product portfolio [4][5] - The company aims to enhance its product offerings through both organic development and strategic partnerships [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the merger with Viome and the concurrent asset sale to BI RAD, viewing these transactions as beneficial for shareholder value [18] - The company is committed to improving the quality of life for patients through innovative products and therapies [5][8] Other Important Information - The company successfully closed a $6,000,000 public offering in February 2025 to strengthen its financial position [4] - A notice of allowance for patents related to the diabetes Neuromodulation System was received, reinforcing the company's leadership in innovative treatments [10] Q&A Session Summary Question: What are the expectations regarding the merger with Viome? - Management indicated that the merger with Viome and the asset sale to BI RAD are expected to generate significant value and growth for shareholders [18]