Ladies and gentlemen, thank you for standing by, and welcome to the ReShape Lifesciences Third Quarter of 2019 Earnings Conference Call. At this time all participants are in a listen-only mode, and please be advised that today's conference is being recorded. [Operator Instructions] Thank you. Now I'd like to hand the conference over to your first speaker today, Mr. Philip Taylor. Sir, you may begin.

Good afternoon, and thank you for joining us on today's call. I'm pleased to be joined by Bart Bandy, Chief Executive Officer of ReShape Lifesciences, who will provide an overview of the Company's recent activities and business highlights. Tom Stankovich, Chief Financial Officer of ReShape, will then review the financial results for the third quarter of 2019, and then turn the call back over to Bart to wrap up. As a reminder, this conference call as well as ReShape Lifesciences’ SEC filings and website at www.reshapelifesciences.com, including the Investor information section of the website, contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Our actual results could differ materially from those discussed due to the known and unknown risks, uncertainties and other factors. These and additional risks and uncertainties are described more fully in the Company's filings with the Securities and Exchange Commission, including those factors identified as Risk Factors in our annual report on Form 10-K that was filed May 14, 2019, and in our quarterly report on Form 10-Q that was filed today. As an additional reminder, our stock is listed OTC, trading under the ticker RSLS. I will now turn the call over to our CEO, Bart Bandy. Bart?

Thanks, Trip. Good afternoon, everyone, and thank you for dialing into our call today. I'm pleased to be hosting the ReShape Lifesciences’ third quarter earnings call and excited to share the continued progress we have made since our last call, and then introduce you to our new CFO, Tom Stankovich, who will share our financial results. And then I will wrap things up. Starting with our top line. Total revenues in the third quarter were $3.5 million. While July and August experienced some seasonality that has been seen industry-wide, September numbers were in line with previous quarters and expectations, and we are seeing this trend continue. While as a result of this seasonality, and our revenues in the third quarter representing a decrease of $0.9 million from $4.4 million in revenues in the second quarter of 2019, what we think is more important and telling is that year-to-date data through September, our revenues in the U.S. are showing a continued positive trend. As a reminder, U.S. revenue has represented the majority of our sales and has the highest margins. We have come a long way in a short time since acquiring the LAP-BAND just nine months ago, and we look forward to our continued progress in the fourth quarter, particularly with the addition of all international commercial activity now that we have fully transitioned that business from Apollo. As you know, since joining ReShape, one of my top priorities has been to hone in on and optimize our commercial organization and strategy, which is integral to the future of ReShape Lifesciences. In this last quarter, we continued connecting with customers both in the U.S. and abroad, through site visits and participation in several high-profile industry conferences. As we push forward our strategy to reestablish the presence of ReShape Lifesciences and…

Thanks, Bart, and good afternoon to everybody. Before I dive into the financial details, I will provide updates on several significant developments regarding ReShape's financial position and operations. In the third quarter, we completed an early warrant exercise transaction as part of the June 2019 private placement, raising an additional $7.6 million of gross proceeds. As a result of this cumulative funding, which has strengthened our financial position and allowed us to improve our debt status, we were able to remove Apollo's leans on all our assets. In other efforts to strengthen our balance sheet and with the goal to support a future relisting of ReShape shares on NASDAQ, at the end of October, a 1-for-120 reverse stock split was approved at a special meeting of stockholders. As announced earlier this week, the reverse split was effective November 12. We would like to reiterate that the market value of the company and the total value of shareholders' positions remains unchanged. The reverse split is simply a mechanism to reduce the total number of shares outstanding and to increase our share price, further improving our financial attractiveness to investors. Separately, we reached a $1.5 million settlement agreement in our final litigation case with Fulfillium. This has been recorded as an expense in our third quarter. Under the settlement agreement, Fulfillium agreed to dismiss, with prejudice, the previously disclosed lawsuits filed by Fulfillium, thus, putting the situation to rest and allowing our management team to get back to focusing 100% of our efforts on running the business. Lastly, as part of cost control initiatives to reduce cash burn and extend our cash runway, as Bart previously mentioned, we have consolidated facilities to our headquarters in San Clemente, California by terminating previous leases in Minnesota and Southern California. This creates significant savings in…

Thanks, Tom. In closing, our accomplishments in this period reflect the continued commitment of each member of the ReShape team to our company and mission. The efforts to rebuild and reestablish ReShape Lifesciences has not been without challenge, but we have made significant progress in a short time with limited resources. In just nine months, ReShape Lifesciences has evolved into a revenue-producing company with a new management team leading a global business. We have fully integrated the LAP-BAND product and have a strategic plan that supports our success in the short-term and the long-term. We have focused on quality and have built best-in-class commercial, operation, regulatory and financial organizations that have been restructured over the past month and that are poised to successfully execute our plan into the fourth quarter and beyond. We still have some work ahead of us as we continue to strengthen what we are confident is a strong foundation that will establish ReShape Lifesciences as a leading provider of solutions for patients battling obesity. And I have the utmost confidence that our people, our can-do culture and our commitment to the market, patients and health care providers will enable us to achieve that goal. Thank you to our investors, Board, employees and customers who continue to support our mission and for listening to our call today.

Ladies and gentlemen, that concludes today's conference call. Thank you for participating. You may now all disconnect.