The Children's Medical Center Corp.

Streamlined integration makes it easier for more IT developers to present trusted, patient-specific medication decision support from FDB SOUTH SAN FRANCISCO, Calif., March 11, 2024 /PRNewswire/ -- FDB (First Databank, Inc.), the leading provider of drug knowledge that helps healthcare professionals make precise decisions, announced today that its FDB Targeted Medication Warnings™ solution, which is part of the FDB PatientFirst™ suite of clinical decision support (CDS) solutions, can now be integrated using CDS Hooks*. This enhancement enables healthcare IT developers to streamline the integration and seamless delivery of next-generation, patient-focused prescribing guidance offered by FDB Targeted Medication Warnings within any electronic health record (EHR) system. Developers can now more quickly and easily present trusted, patient-specific medication decision support with Targeted Medication Warnings during the optimal workflows within the prescriber's EHR, such as when a new medication is selected for ordering. "FDB continues to invest in our solutions to take advantage of the latest technological innovations that help clinicians make safe, well-informed care decisions faster and easier," said Anna Dover, PharmD, BCPS, director of product management for FDB. "Adding a CDS Hooks service to our already highly configurable Targeted Medication Warnings solution allows EHR developers to easily implement next-generation medication decision support at the right moment in the clinical workflow with targeted recommendations relevant to each patient. The ability to optimize the presentation of alerts can save prescribers time, reduce alert fatigue, and ultimately result in safer, higher-quality care." Hospitals and health systems leverage FDB Targeted Medication Warnings to optimize medication guidance based on patient-specific data (e.g., lab results and clinical risk scores) and to ensure that medication alerts and other guidance are presented to clinicians only when pertinent to individual patients in their current clinical scenarios. Smarter, context aware guidance like this helps to improve medication decision-making while lessening the burden of over-alerting and data searching that clinicians face. CDS Hooks is a Health Level Seven International® (HL7®) specification that allows for enhanced integration of clinical software applications within an EHR system. The service is compatible with the SMART on FHIR (Substitutable Medical Applications, Reusable Technologies on Fast Healthcare Interoperability Resources) standard protocol for data exchange. Developers can activate Targeted Medication Warnings using CDS Hooks through an application programming interface (API) to minimize development time and speed time to market. "Optimized medication safety alerts, made possible by FDB Targeted Medication Warnings, represent a significant progression in CDS capabilities at Lehigh Valley Health Network (LVHN) and many other healthcare institutions,' said Donald Levick, MD, MBA, consultant and former Chief Medical Information Officer at LVHN in Pennsylvania. "Advantages include more efficient medication guidance, improvements in alert acceptance and override rates, and greater clinician satisfaction. With CDS Hooks, organizations without the necessary interface infrastructure can now deploy Targeted Medication Warnings and reap these benefits. Straightforward integration via CDS Hooks should provide a compelling motivation for healthcare organizations to adopt this cutting-edge technology, thereby elevating the care process for all involved parties." The addition of CDS Hooks service to FDB Targeted Medication Warnings supports the patient-specific decision support requirements of the 21st Century Cures Act, which was designed to advance interoperability and facilitate the seamless exchange of healthcare information. By aligning with the Cures Act's emphasis on accessibility and exchange of electronic health information, this enhancement ensures that FDB's solutions contribute to an integrated healthcare environment. The use of standardized APIs and adherence to the SMART on FHIR protocol further underscore FDB's commitment to the Cures Act's aim for greater data interoperability in healthcare IT. This strategic move by FDB, along with the robust security measures it has in place to help protect patient data, enhances the capability of health IT systems to meet current regulatory expectations, while significantly augmenting the efficiency, safety, and quality of patient care through advanced medication decision support. About FDB FDB (First Databank) creates and delivers the world's most powerful drug knowledge that ignites, inspires, and illuminates critical medication decisions. We collaborate with our partners to help improve patient safety, operational efficiency, and health outcomes. Our drug databases drive healthcare information systems that serve the majority of hospitals, physician practices, pharmacies, payers, and all other areas of healthcare and are used by millions of clinicians, business associates, and patients every day. Please visit us at fdbhealth.com, or follow us on LinkedIn and YouTube. About Hearst Health The mission of Hearst Health is to help guide the most important care moments by delivering vital information into the hands of everyone who touches a person's health journey. Care guidance from Hearst Health reaches the majority of people in the U.S. The Hearst Health network includes FDB (First Databank), Zynx Health, MCG, Homecare Homebase and MHK. Hearst also holds a minority interest in the precision medicine and oncology analytics company Aster Insights. Follow Hearst Health on LinkedIn @Hearst-Health. Media Contact Tara Stultz Amendola Communications for FDB M: 440-225-9595 [email protected] *The Children's Medical Center Corporation and its affiliates and partners in no way endorse, certify, or guarantee the quality of FDB Targeted Medication Warnings or FDB or its products. SOURCE FDB (First Databank)

Learn how physicians, pharmacists & others benefit from patient-specific CDS, simplified patient medication instructions & a more flexible ePrescribing network SOUTH SAN FRANCISCO, Calif., March 7, 2024 /PRNewswire/ -- FDB (First Databank, Inc.), the leading provider of drug knowledge that helps healthcare professionals make precise decisions, will showcase how provider organizations can elevate the clinician experience at the 2024 HIMSS Global Health Conference & Exhibition in Orlando, March 11-15. Through patient-specific clinical decision support (CDS), simplified patient instructions that help lead to better medication adherence, and a more flexible ePrescribing network that enables the smooth flow of prescriptions between prescribers, payers, and pharmacies, FDB is helping solve major challenges for healthcare delivery organizations today. FDB PatientFirst™ Solutions: Enabling Informed Medication Decisions While Reducing Alert Burden Attendees at a HIMSS24 education session and visitors to FDB booth #1747 in the HIMSS24 exhibit hall will discover how leading hospitals and health systems are using FDB PatientFirst™ solutions. These solutions leverage individual patient data such as lab results and clinical risk scores to ensure that medication CDS alerts and additional guidance are presented to healthcare providers only when pertinent to a patient's immediate care needs and are appropriately timed within the workflow. This context-aware CDS helps to improve medication decision-making for better patient care and safety while lessening the burden of over-alerting and data searching that clinicians face. "Clinicians are overburdened. We all know that," said Virginia Halsey, senior vice president of strategy and product management for FDB. "One way that we can help is to amplify alerts that are most relevant to the patient currently being treated while achieving an overall net reduction in alerts. We do that by elevating patient-specific guidance and reducing generalized warnings. In addition, we are now taking this same approach to help reduce inpatient medication costs by using patient-specific information to suggest appropriate alternatives." FDB Targeted Medication Warnings™: Patient-Centered Guidance at the Right Moment The foundation of FDB PatientFirst is FDB Targeted Medication Warnings™. The solution integrates the most sophisticated medication decision support from FDB to provide clinicians with more meaningful and patient-centered information. CDS alert guidance can be targeted to high-risk clinical scenarios and is fully customizable to reflect an institution's best practices while leveraging situational context and patient-specific parameters, rather than generic warnings. By identifying only the patients that manifest the risk at the right time in the workflow, Targeted Medication Warnings can help clinicians protect patients and promote drug efficacy while improving the clinician experience. HIMSS24 attendees will learn how NCH (Naples Comprehensive Health) used FDB Targeted Medication Warnings with FDB AlertSpace® to elevate the experience of its physicians and to improve patient safety and Leapfrog CPOE test results. See below for more details on the NCH education session, titled "Introducing More Meaningful Medication Guidance While Tackling Alert Overload." FDB CDS Analytics™: Providing Actionable Insights into the Effectiveness of Clinical Decision Support HIMSS24 attendees will also discover the powerful FDB CDS Analytics™ platform that works in conjunction with FDB Targeted Medication Warnings to enable healthcare institutions to seamlessly track, analyze, and refine their medication-related CDS. With user-friendly dashboards, decision-makers can review and interpret trends in CDS interaction, dissecting the data at departmental and individual clinician levels for precise adjustments. Furthermore, FDB CDS Analytics allows for long-term monitoring of CDS performance, assessing its contribution to patient safety, clinical outcomes, and overall user satisfaction. FDB Pharmacogenomic CDS: Advancing Personalized Prescribing with Genetic Data By integrating patients' genetic data, medical institutions are enhancing prescribing accuracy and treatment effectiveness while incorporating added safeguards to protect patients from adverse drug events. HIMSS24 attendees will learn how FDB advances this trend with its Pharmacogenomic CDS solution. FDB Pharmacogenomics CDS provides actionable insights for tailored medication choices that align with individual genetic profiles. FDB's Meducation ® Solution: Helping Patients Better Understand Medication Instructions Equipping clinicians with better tools to help patients understand and adhere to drug therapies further enhances the clinician's experience and helps them achieve better outcomes for patients. HIMSS24 attendees will see how FDB's Meducation® solution delivers easy-to-understand and personalized medication instructions to all patients, including those with limited English language proficiency. Meducation materials include simplified monographs, Universal Medication Schedule (UMS) calendar visuals, videos demonstrating how to administer medications, and more. All materials adhere to a 5th- to 8th-grade reading level for greater accessibility and can be made available in more than 30 languages. Meducation also supports multilingual labeling for prescriptions. FDB Vela™: Bringing Greater Flexibility to ePrescribing FDB will mark the second anniversary of the FDB Vela™ ePrescribing Network at HIMSS24. This new cloud-native electronic prescribing network is rapidly gaining momentum because it is giving prescribers, payers, pharmacies, and hubs the flexibility they need to innovate and improve the drug prescribing and prescription fulfillment process for all participants including consumers. It is also extending the benefits of ePrescribing to the veterinary market. HIMSS Education Session: NCH Boosts Physician Experience, Patient Safety, and Leapfrog CPOE Test Results with FDB PatientFirst Solutions FDB customer NCH (Naples Comprehensive Health), a non-profit, Advanced Community Health System™ located in Naples, Florida, will share its transformational CDS experience during a HIMSS24 education session. Chief Medical Informatics Officer and CDS Hero™ David R. Linz, MD, FACP, will enlighten attendees on how the health system utilized FDB PatientFirst solutions in conjunction with a new electronic health record (EHR) system implementation to ensure the relevancy of drug guidance and to prevent prescribers from being inundated with too many new non-pertinent medication CDS alerts. The implementation yielded remarkable reductions in drug-drug interaction (DDI) and specific high-volume alerts. It also contributed to NCH's improvement in its Leapfrog CPOE test results, while simultaneously alleviating time-pressed clinicians and IT staff from the obligation to continually review, research, and update the information, passing those responsibilities on to FDB. The NCH education session, titled " Introducing More Meaningful Medication Guidance While Tackling Alert Overload" , is scheduled for 1:30-2:30 pm ET, Tuesday, March 12, in W311A, West Building, Level 3 in the Orange County Convention Center in Orlando. Read the related press release. CDS Hooks Optimization: Integrating Transformational Medication Guidance More Easily HIMSS24 attendees will learn more about how FDB continues to invest in and optimize its solutions. FDB team members will discuss how the FDB Targeted Medication Warnings solution can now be integrated using CDS Hooks*, a Health Level Seven International® (HL7®) specification that allows for enhanced integration of clinical software applications within an EHR system. This enhancement will enable EHR and other healthcare technology developers to more quickly and easily present trusted, patient-specific medication decision support from Targeted Medication Warnings during the optimal workflows within the prescriber's EHR, such as when a new medication is selected for ordering. CDS Heroes™: Leading the Way in Optimizing Medication CDS FDB is pleased to recognize and thank the outstanding individuals within hospitals and health systems who use FDB PatientFirst solutions to improve medication decision support for healthcare providers. These CDS Heroes are on a mission to ignite actionable guidance, transform clinician workflows, elevate patient safety and outcomes, and banish alert overload for a better clinician experience. FDB hopes to inspire other healthcare systems and hospitals to undertake new patient-centric CDS optimization initiatives by championing the success of CDS Heroes. HIMSS24 attendees whose organizations are enhancing medication CDS are invited to share their success stories at FDB booth #1747 and learn how they can be recognized as CDS Heroes. "Elevate Your Experience": Unwind with Wine, Beer & Gourmet Popcorn HIMSS24 attendees are invited to join FDB for a casual in-booth reception to network with industry experts and peers. FDB will celebrate CDS Heroes at the reception. "Elevate Your Experience" Reception Wednesday, March 13 4:30-6 pm Orange County Convention Center West Hall Booth #1747 Complimentary gourmet popcorn gift to all attendees Raffle drawing to win a $500 Apple Gift Card Must be present to win. Drawing to be conducted at 5:45 pm. Meet With FDB Representatives to Learn More: The FDB team will be on hand at booth #1747 in the HIMSS24 Exhibit Hall to answer attendees' questions and discuss their organizations' medication CDS-related clinician experience challenges. Book a meeting here. About FDB FDB (First Databank) creates and delivers the world's most powerful drug knowledge that ignites, inspires, and illuminates critical medication decisions. We collaborate with our partners to help improve patient safety, operational efficiency, and health outcomes. Our drug databases drive healthcare information systems that serve the majority of hospitals, physician practices, pharmacies, payers, and all other areas of healthcare and are used by millions of clinicians, business associates, and patients every day. Please visit us at , or follow us on LinkedIn and YouTube. About Hearst Health The mission of Hearst Health is to help guide the most important care moments by delivering vital information into the hands of everyone who touches a person's health journey. Care guidance from Hearst Health reaches the majority of people in the U.S. The Hearst Health network includes FDB (First Databank), Zynx Health, MCG, Homecare Homebase, and MHK. Hearst also holds a minority interest in the precision medicine and oncology analytics company Aster Insights. Follow Hearst Health on LinkedIn @Hearst-Health. Contact: Tara Stultz Amendola Communications for FDB M: 440-225-9595 [email protected] *The Children's Medical Center Corporation and its affiliates and partners in no way endorse, certify, or guarantee the quality of FDB Targeted Medication Warnings or FDB or its products. SOURCE FDB - First Databank

EXETER, N.H.--(BUSINESS WIRE)-- Vapotherm Inc. (NYSE: VAPO), (“Vapotherm” or the “Company”), today announced first quarter 2023 financial results. First Quarter 2023 Summary and Highlights Total revenue for the first quarter of 2023 was $17.7 million Capital revenue increased by 28% as compared to the fourth quarter of 2022 due to strong HVT 2.0 sales Disposables revenue decreased by 12% as compared to the fourth quarter of 2022 due to the timing of the US flu season Gross margin in the first quarter of 2023 was 35.0% Gross margin increased by 750 basis points over the fourth quarter of 2022 due to initial benefits from the transition of operations to Mexico For the first quarter of 2023, GAAP operating expenses for the first quarter of 2023 were $19.8 million and Non-GAAP cash operating expenses were $16.4 million. Both decreased as a result of the Company’s Path to Profitability initiatives: GAAP operating expenses decreased by $3.0 million over the fourth quarter of 2022 Non-GAAP cash operating expenses decreased by $1.6 million over the fourth quarter of 2022 The Company’s unrestricted cash balance was $25.7 million at the end of the first quarter of 2023 The Company closed a $23 million private placement in February 2023 Net cash burn of $11.0 million in the first quarter was $2.0 million less than net cash burn in the fourth quarter of 2022 “We had solid execution in the first quarter and are pleased with the positive trends we’re seeing in key elements of our business,” said Joseph Army, President and CEO. “Market receptivity to HVT 2.0 continues to be strong and, as expected, HVT 2.0 capital sales increased over the fourth quarter of 2022 despite a challenging capital equipment environment. We also continued to make progress on our Path to Profitability initiatives which resulted in sequential quarter improvements in gross margin, operating expenses and cash burn.” Results for the Three Months March 31, 2023 The following table reflects the Company’s net revenue for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 Change (in thousands, except percentages) Amount % of Revenue Amount % of Revenue $ % Revenue Capital (product & lease revenue) $ 3,901 22.0 % $ 4,050 18.7 % $ (149 ) (3.7 )% Disposables 12,417 70.0 % 14,879 68.8 % (2,462 ) (16.5 )% Service and other 1,413 8.0 % 2,693 12.5 % (1,280 ) (47.5 )% Total net revenue $ 17,731 100.0 % $ 21,622 100.0 % $ (3,891 ) (18.0 )% Net revenue for the first quarter of 2023 was $17.7 million. Disposables and capital revenue were lower in the first quarter of 2023 as compared to the first quarter of 2022 since the prior period included significant Omicron related customer demand, especially for disposables. There was little to no COVID related customer demand in the first quarter of 2023. Revenue information by geography is summarized as follows: Three Months Ended March 31, 2023 2022 Change (in thousands, except percentages) Amount % of Revenue Amount % of Revenue $ % United States $ 13,014 73.4 % $ 16,499 76.3 % $ (3,485 ) (21.1 )% International 4,717 26.6 % 5,123 23.7 % (406 ) (7.9 )% Total net revenue $ 17,731 100.0 % $ 21,622 100.0 % $ (3,891 ) (18.0 )% Gross profit and gross margin for the first quarter of 2023 was $6.2 million and 35.0%, respectively. In the first quarter of 2023, gross margin increased by 750 basis points over gross margin of 27.5% in the fourth quarter of 2022. Total operating expenses were $19.8 million in the first quarter of 2023, a decrease of $8.0 million as compared to the same period last year. Non-GAAP cash operating expenses, excluding impairment charges, loss on disposal of property and equipment, depreciation and amortization, stock-based compensation expense, termination benefits, gain (loss) from deconsolidation, and change in fair value of contingent consideration were $16.4 million in the first quarter of 2023 compared to $24.3 million in the first quarter of 2022 and $18.0 million in the fourth quarter of 2022. The decreases in operating expenses and Non-GAAP cash operating expenses were primarily due to the Company’s path-to-profitability initiatives. Operating expenses in the first quarter of 2023 include a non-cash impairment charge of $0.4 million related to the write-down of operating lease right-of-use assets to their estimated fair value. Net loss for the first quarter of 2023 was $18.1 million, or $0.45 per share, compared to $22.9 million, or $0.87 per share, in the first quarter of 2022. Net loss per share was based on 40,608,605 and 26,321,087 weighted average shares outstanding for the first quarter of 2023 and 2022, respectively. Adjusted EBITDA was negative $9.2 million for the first quarter of 2023 as compared to negative $15.3 million for the first quarter of 2022. The improvement in Adjusted EBITDA was primarily due to the Company’s path-to-profitability initiatives. Cash Position Cash and cash equivalents were $25.7 million as of March 31, 2023 compared to $15.7 million as of December 31, 2022. The increase in cash in the first quarter of 2023 was due to net proceeds received under the Company’s February 2023 private placement financing, partially offset by its net loss. The Company expects that cash burn the first quarter of the year will represent more than half of the total cash burn in 2023. Fiscal 2023 Outlook The Company continues to expect full year revenue to be between $77 million and $79 million, full year gross margins of 48% to 50% and full year operating expenses of $76 million to $78 million. Fiscal 2023, non-GAAP cash operating expenses excluding additional items as detailed below are still expected to be in the range of $60 million to $62 million. While the Company expects disposable revenue to account for 75% of our total revenue over the long-term, the Company anticipates that the contribution of disposable revenue as a percentage of total revenue may be slightly lower than this in 2023 given the market receptivity to HVT 2.0. Conference Call Information Management will host a conference call at 4:30 p.m. Eastern Time on May 3, 2023 to discuss the results of the quarter with a question and answer session. To listen to the conference call on your telephone, please dial +1 (888) 330-2391 for U.S. callers, or +1 (240) 789-2702 for international callers, approximately ten minutes prior to the start time and reference conference code 6585549. To listen to a live webcast, please visit the Investors section of the Vapotherm website at: . The webcast replay will be available on the Vapotherm website for 12 months following completion of the call. A replay of this conference call will be available by telephone through May 10, 2023 by dialing +1 (800) 770-2030 in the U.S. or +1 (647) 362-9199 outside of the U.S. The replay access code is 6585549. Website Information Vapotherm routinely posts important information for investors on the Investor Relations section of its website, . Vapotherm intends to use this website as a means of disclosing material, non-public information and for complying with Vapotherm’s disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investor Relations section of Vapotherm’s website, in addition to following Vapotherm’s press releases, Securities and Exchange Commission (“SEC”) filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, Vapotherm’s website is not incorporated by reference into, and is not a part of, this document. Non-GAAP Financial Measures This press release includes non-GAAP financial measures, including EBITDA, Adjusted EBITDA, non-GAAP operating expenses excluding impairment of long-lived and intangible assets and loss on disposal of property and equipment, and non-GAAP cash operating expenses excluding additional items, including stock-based compensation expense, depreciation and amortization, termination benefits, gain (loss) from deconsolidation, and change in fair value of contingent consideration, which differ from operating expenses calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). EBITDA represents net loss less interest expense, net, income tax provision or benefit, and depreciation and amortization, and Adjusted EBITDA represents EBITDA as further adjusted for the impact of foreign currency loss or gain, change in fair value of contingent consideration, stock-based compensation expense, impairment of long lived and intangible assets, gain (loss) from deconsolidation, and loss on debt extinguishment. Since these adjustments to the GAAP measures are highly variable, difficult to predict and of a size that could have substantial impact on Vapotherm’s reported results of operations for a period, Vapotherm cannot provide without unreasonable effort a quantitative reconciliation to the most directly comparable GAAP measures for its 2023 financial guidance regarding non-GAAP cash operating expenses. The Company has reconciled all historical non-GAAP financial measures with the most directly comparable GAAP financial measures in tables accompanying this release. These non-GAAP financial measures are presented because the Company believes they are useful indicators of its operating performance. Management uses these non-GAAP financial measures, as measures of the Company’s operating performance and for planning purposes, including the preparation of the Company’s annual operating budget and financial projections. The Company believes these measures are useful to investors as supplemental information because they are frequently used by analysts, investors and other interested parties to evaluate companies in its industry. The Company believes Adjusted EBITDA is useful to its management and investors as a measure of comparative operating performance from period to period. These non-GAAP financial measures should not be considered alternatives to, or superior to, net income or loss as a measure of financial performance or cash flows from operations as a measure of liquidity, or any other performance measure derived in accordance with GAAP. They should not be construed to imply that the Company’s future results will be unaffected by unusual or non-recurring items. In addition, Adjusted EBITDA is not intended to be a measure of free cash flow for management’s discretionary use, as it does not reflect certain cash requirements such as tax payments, debt service requirements, capital expenditures and certain other cash costs that may recur in the future. Adjusted EBITDA contains certain other limitations, including the failure to reflect our capital expenditures, cash requirements for working capital needs and cash costs to replace assets being depreciated and amortized. In evaluating Adjusted EBITDA, you should be aware that in the future the Company may incur expenses that are the same as or similar to some of the adjustments in the Adjusted EBITDA presentation. The Company’s presentation of Adjusted EBITDA should not be construed to imply that its future results will be unaffected by any such adjustments. Management compensates for these limitations by primarily relying on the Company’s GAAP results in addition to using Adjusted EBITDA and other non-GAAP financial measures on a supplemental basis. The Company’s definitions of Adjusted EBITDA and non-GAAP operating expenses excluding impairment of long-lived and intangible assets and loss on disposal of property and equipment and non-GAAP cash operating expenses excluding the additional items detailed below, are not necessarily comparable to other similarly titled captions of other companies due to different methods of calculation. About Vapotherm Vapotherm, Inc. (NYSE: VAPO) is a publicly traded developer and manufacturer of advanced respiratory technology based in Exeter, New Hampshire, USA. The Company develops innovative, comfortable, non-invasive technologies for respiratory support of patients with chronic or acute breathing disorders. Over 3.9 million patients have been treated with the use of Vapotherm high velocity therapy® systems. For more information, visit . Vapotherm high velocity therapy is mask-free non-invasive respiratory support and is a front-line tool for relieving respiratory distress—including hypercapnia, hypoxemia, and dyspnea. It allows for the fast, safe treatment of undifferentiated respiratory distress with one tool. The HVT 2.0 and Precision Flow systems’ mask-free interface delivers optimally conditioned breathing gases, making it comfortable for patients and reducing the risks and care complexities associated with mask therapies. While being treated, patients can talk, eat, drink and take oral medication. Legal Notice Regarding Forward-Looking Statements This press release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995, including statements about the Company’s expected net revenue, including revenue breakdown, gross margin, operating expenses and non-GAAP cash operating expenses for fiscal year 2023. In some cases, you can identify forward-looking statements by terms such as “expect,” “continue,” “plan,” “intend,” “will,” “outlook,” “guidance,” or “typically,” or the negative of these terms or other similar expressions, although not all forward-looking statements contain these words, and the use of future dates. Each forward-looking statement is subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statement. Applicable risks and uncertainties include, but are not limited to the following: Vapotherm has incurred losses in the past and may be unable to achieve or sustain profitability in the future or achieve its 2023 financial guidance including reduced cash burn; risks associated with the move of its manufacturing operations to Mexico; Vapotherm’s ability to raise additional capital to fund its existing commercial operations, develop and commercialize new products, and expand its operations; Vapotherm’s ability to comply with its financial covenants, execute on its path-to-profitability initiative, convert excess inventory into cash and fund its business through 2023; Vapotherm’s dependence on sales generated from its High Velocity Therapy systems, competition from multi-national corporations who have significantly greater resources than Vapotherm and are more established in the respiratory market; the ability for Precision Flow systems to gain increased market acceptance; Vapotherm’s inexperience directly marketing and selling its products; the potential loss of one or more suppliers and dependence on its new third party manufacturer; Vapotherm’s susceptibility to seasonal fluctuations; Vapotherm’s failure to comply with applicable United States and foreign regulatory requirements; the failure to obtain U.S. Food and Drug Administration or other regulatory authorization to market and sell future products or its inability to secure, maintain or enforce patent or other intellectual property protection for its products; the impact of COVID on its business, including its supply chain, and the other risks and uncertainties included under the heading “Risk Factors” in Vapotherm’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, as filed with the SEC on February 23, 2023, and in any subsequent filings with the SEC. The forward-looking statements contained in this press release reflect Vapotherm’s views as of the date hereof, and Vapotherm does not assume and specifically disclaims any obligation to update any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law. Financial Statements: VAPOTHERM, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share amounts) March 31, 2023 December 31, 2022 (unaudited) Assets Current assets Cash and cash equivalents $ 25,713 $ 15,738 Accounts receivable, net of expected credit losses of $251 and $227, respectively 8,403 9,102 Inventories, net 28,499 32,980 Prepaid expenses and other current assets 3,444 2,081 Total current assets 66,059 59,901 Property and equipment, net 25,673 26,636 Operating lease right-of-use assets 5,030 5,805 Restricted cash 1,109 1,109 Goodwill 549 536 Deferred income tax assets 125 96 Other long-term assets 2,102 2,112 Total assets $ 100,647 $ 96,195 Liabilities and Stockholders’ Deficit Current liabilities Accounts payable $ 2,974 $ 2,739 Contract liabilities 1,197 1,216 Accrued expenses and other current liabilities 11,810 15,609 Total current liabilities 15,981 19,564 Long-term loans payable, net 99,270 96,994 Other long-term liabilities 7,750 7,827 Total liabilities 123,001 124,385 Commitments and contingencies Stockholders’ deficit Preferred stock ($0.001 par value) 25,000,000 shares authorized; no shares issued and outstanding as of March 31, 2023 and December 31, 2022 - - Common stock ($0.001 par value) 175,000,000 shares authorized as of March 31, 2023 and December 31, 2022, 46,215,938 and 28,516,047 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively 46 29 Additional paid-in capital 485,714 461,940 Accumulated other comprehensive loss (22 ) (157 ) Accumulated deficit (508,092 ) (490,002 ) Total stockholders’ deficit (22,354 ) (28,190 ) Total liabilities and stockholders’ deficit $ 100,647 $ 96,195 VAPOTHERM, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share amounts) Three Months Ended March 31, 2023 2022 (unaudited) Net revenue $ 17,731 $ 21,622 Cost of revenue 11,519 13,730 Gross profit 6,212 7,892 Operating expenses Research and development 3,987 5,549 Sales and marketing 9,592 13,322 General and administrative 5,770 8,954 Impairment of right-of-use assets 432 - Loss on disposal of property and equipment 55 - Total operating expenses 19,836 27,825 Loss from operations (13,624 ) (19,933 ) Other (expense) income Interest expense (4,331 ) (1,747 ) Interest income 28 17 Foreign currency loss (154 ) (69 ) Loss on extinguishment of debt - (1,114 ) Net loss before income taxes $ (18,081 ) $ (22,846 ) Provision for income taxes 9 92 Net loss $ (18,090 ) $ (22,938 ) Other comprehensive loss: Foreign currency translation adjustments 135 (55 ) Total other comprehensive loss 135 (55 ) Total comprehensive loss $ (17,955 ) $ (22,993 ) Net loss per share basic and diluted $ (0.45 ) $ (0.87 ) Weighted-average number of shares used in calculating net loss per share, basic and diluted 40,608,605 26,321,087 VAPOTHERM, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Three Months Ended March 31, 2023 2022 Cash flows from operating activities Net loss $ (18,090 ) $ (22,938 ) Adjustments to reconcile net loss to net cash used in operating activities Stock-based compensation expense 2,820 3,446 Depreciation and amortization 1,248 1,391 Provision for credit losses 49 177 Provision for inventory valuation 165 150 Non-cash lease expense 387 519 Change in fair value of contingent consideration - (188 ) Impairment of right-of-use assets 432 - Loss on disposal of property and equipment 55 - Placed units reserve 344 151 Interest paid in-kind 2,194 - Amortization of discount on debt 184 139 Deferred income taxes 9 83 Loss on extinguishment of debt - 1,114 Changes in operating assets and liabilities: Accounts receivable 663 805 Inventories 4,384 (1,650 ) Prepaid expenses and other assets (1,234 ) (927 ) Accounts payable 114 84 Contract liabilities (25 ) (652 ) Accrued expenses and other current liabilities (3,148 ) (11,882 ) Operating lease liabilities, current and long-term (585 ) (293 ) Net cash used in operating activities (10,034 ) (30,471 ) Cash flows from investing activities Purchases of property and equipment (1,004 ) (3,008 ) Net cash used in investing activities (1,004 ) (3,008 ) Cash flows from financing activities Proceeds from issuance of common stock and pre-funded warrants and accompanying warrants in private placement, net of issuance costs 20,943 - Proceeds from loans, net of discount - 99,094 Repayment of loans - (40,000 ) Payments of debt extinguishment costs - (817 ) Payment of debt issuance costs - (1,365 ) Repayments on revolving loan facility - (6,608 ) Payment of contingent consideration - (135 ) Proceeds from exercise of stock options - 12 Net cash provided by financing activities 20,943 50,181 Effect of exchange rate changes on cash, cash equivalents and restricted cash 70 (10 ) Net increase in cash, cash equivalents and restricted cash 9,975 16,692 Cash, cash equivalents and restricted cash Beginning of period 16,847 57,324 End of period $ 26,822 $ 74,016 Supplemental disclosures of cash flow information Interest paid during the period $ 1,284 $ 983 Property and equipment purchases in accounts payable and accrued expenses $ 354 $ 1,581 Debt issuance costs in accounts payable and accrued expenses $ - $ 202 Issuance of common stock to satisfy contingent consideration $ - $ 5,630 Issuance of common stock warrants in conjunction with long term debt $ 28 $ 1,157 Issuance of common stock upon vesting of restricted stock units $ - $ 10 Non-GAAP Financial Measures The following tables contain a reconciliation of net loss to Adjusted EBITDA for the three months ended March 31, 2023 and 2022, respectively. (unaudited) Three Months Ended March 31, 2023 2022 (in thousands) Net loss $ (18,090 ) $ (22,938 ) Interest expense, net 4,303 1,730 Provision for income taxes 9 92 Depreciation and amortization 1,248 1,391 EBITDA $ (12,530 ) $ (19,725 ) Stock-based compensation 2,820 3,446 Impairment of right-of-use assets 432 - Foreign currency 154 69 Gain from deconsolidation (114 ) - Loss on disposal of property and equipment 55 - Loss on extinguishment of debt - 1,114 Change in fair value of contingent consideration - (188 ) Adjusted EBITDA $ (9,183 ) $ (15,284 ) The following tables contain a reconciliation of operating expenses to non-GAAP operating expenses and non-GAAP cash operating expenses for the three months ended March 31, 2023, December 31, 2022 and March 31, 2022, respectively. (unaudited) Three Months Ended March 31, 2023 December 31, 2022 March 31, 2022 (in thousands) GAAP operating expenses $ 19,836 $ 22,827 $ 27,825 Impairment of long-lived assets (432 ) (1,501 ) - Loss on disposal of property and equipment (55 ) (247 ) - Non-GAAP operating expenses 19,349 21,079 27,825 Stock-based compensation (2,773 ) (2,663 ) (3,218 ) Termination benefits - (30 ) - Depreciation and amortization (305 ) (342 ) (472 ) Gain (loss) from deconsolidation 114 (35 ) - Change in fair value of contingent consideration - - 188 Non-GAAP cash operating expenses $ 16,385 $ 18,009 $ 24,323 Supplemental Operating Metrics March 31, 2023 2022 Change Amount Amount Amount % HVT 2.0 and precision flow units installed base United States 24,488 23,693 795 3.4 % International 12,586 12,038 548 4.6 % Total 37,074 35,731 1,343 3.8 % Three Months Ended March 31, 2023 2022 Change Amount Amount Amount % HVT 2.0 and precision flow units sold and leased United States 260 322 (62 ) (19.3 )% International 127 185 (58 ) (31.4 )% Total 387 507 (120 ) (23.7 )% Disposable patient circuits sold United States 81,219 99,591 (18,372 ) (18.4 )% International 39,184 48,036 (8,852 ) (18.4 )% Total 120,403 147,627 (27,224 ) (18.4 )%