Good morning and welcome to InspireMD's first quarter 2026 earnings conference call. Currently, all participants are in listen-only mode. We will facilitate a question-and-answer session towards the end of today's call. As a reminder, this call is being recorded for replay purposes. Joining us today from InspireMD are Marvin Zoffman, Chief Executive Officer, Mike Lawless, Chief Financial Officer, and Shane Gleason, Chief Commercial Officer. During this call, management will make forward-looking statements which are based upon management's current expectations, beliefs, and projections, many of which by their nature are inherently uncertain. These forward-looking statements involve risk and uncertainties that may call actual results to differ materially from those expressed in such forward-looking statements. More information about these risks, please refer to the risk factors described in Inspires MD's most recently filed periodic report on Form 10-K and Form 10-Q, or any updates in its current report on Form 8-K, filed with the U.S. Securities and Exchange Commission, and Inspires MD's press release that accompanies these calls, particularly the cautionary statements made in it. During the call today, the company may discuss certain non-GAAP financial measures. For more detailed discussion of these non-GAAP financial measures and historical reconciliations to the most comparable GAAP measures, please refer to the company's earnings release. This call contains time-sensitive information that is accurate only as of today, May 4, 2026. Accepted as required by law, inspired in the this claims any obligation to publicly update or revise any information to reflect events or circumstances that occur after this call. It is now my pleasure to turn the call over to Marvin Slotman, Chief Executive Officer. Marvin, please go ahead. Thank you, Operator, and good

morning, everyone. Starting with our Q1 results, our first quarter revenue of $3.4 million was a strong start to 2026, representing growth of over 120%. This performance reflects what we continue to see globally, robust and growing demand for the Seaguard implant, driven by its highly differentiated clinical profile and strong physician demand. Before I go any further, I want to directly address the decision to pause commercialization for the Seaguard Prime 135 delivery system, which we announced last week in coordination with the FDA. While we recognize this action represents a clear setback from our commercial momentum in the United States, let me be very clear on three important points. First, this action is not related to the safety or performance of the Seaguard stent implant, which continues to demonstrate best-in-class clinical outcomes. Second, this was a proactive decision based on feedback from our controlled U.S. launch where we identified opportunities to further enhance the technical performance and physician experience of the delivery system. Third, we are confident this is a temporary and correctable issue and we have a clear path forward to restoring and expanding our U.S. commercial opportunity. Importantly, this reflects our longstanding philosophy. We prioritize clinical excellence and physician confidence over speed of commercialization. We believe taking this step now ultimately strengthens our long-term market position. In parallel, we're advancing an important and near-term solution pursuing FDA approval of our original SeaGuard delivery system that has already been successfully used in more than 70,000 cases globally, as well as in the majority of the cases in the successful SeaGuardians clinical trial. Our ongoing discussions with FDA are positive and constructive, and we anticipate FDA approval in the third quarter of 2026, which would enable us to reenter the US market with a proven and highly reliable platform. Despite this temporary pause in the United States, the fundamentals of our business remain strong. Strong physician excitement and belief in SeaGuard, continued strong international growth, our TCAR strategy remains fully on track and unaffected by this voluntary action. We continue to anticipate FDA approval of the SeaGuard Prime 80 system for TCAR procedures in the second half of this year, which we believe could potentially double our U.S. addressable market. Furthermore, we're pleased to have received FDA approval to initiate the SeaGuardians 3 clinical trial, which will evaluate the company's next-generation switch guard neuroprotection system with the SeaGuard Prime 80 for use in TCAR procedures. When When we approve, this will allow us to offer the full TCAR toolkit. Given the temporary pause in the U.S. commercialization, we have made the decision to withdraw our full year 2026 revenue guidance. We believe this is the most responsible approach while we complete enhancements to the Seaguard Prime delivery system and gain more clarity on the specific timing of the approval of our original Seaguard platform to our return to the U.S. market. That said, we remain confident in the long-term growth trajectory of the business. During this period, the entire team remains focused on approval of the original Seaguard 135, which is already being reviewed by FDA, approval of the Seaguard Prime 80 with a TCAR indication for use with the only currently available neuroprotection system in the market, of design changes and approval of our improved SeaGuard Prime 135 platform, enrollment of the SeaGuardians 3 study for clearance of our Next Generation SwitchGuard Neuroprotection System for TCAR procedures. Before closing, let me reiterate the following. We know there is a clear and growing global demand for our SeaGuard implant as proven in over 70,000 patients to date with unmatched clinical outcomes. We have taken a proactive step to enhance our delivery system in the U.S. We have a clear path to re-enter the U.S. market with a commercially proven product and line extension. We believe we have a stint that can and is redefining carotid intervention, and we remain highly confident in our long-term growth plan. Mike will now talk you through the Q1 results and financial implications of our voluntary field action. Mike?

Thanks, Marvin. For the first quarter of 2026, total revenue was $3.4 million, representing an increase of 122% compared to revenue of $1.5 million for the first quarter of 2025. This growth was driven by the launch of Seaguard Prime in the U.S. and increased penetration of international markets with Seaguard. U.S. revenue for the first quarter was $1.2 million, driven by the launch of Seaguard Prime, representing 36 percent sequential growth versus the fourth quarter of 2025. Recall that we initiated the controlled commercial launch of Seaguard Prime in the third quarter of 2025, so we do not yet have year-over-year performance that we can report for U.S. revenue. International revenue for the first quarter was $2.2 million, reflecting annual growth of 48 percent compared to 1.5 million for the first quarter of 2025. The majority of international growth was driven by higher unit sales, while changes in foreign exchange rates contributed growth of 11 percent to our international results. Gross profit for the first quarter of 2026 was 0.7 million dollars, or 20.2 percent of revenue, compared to a gross profit of 0.3 million, or 19.1 percent of revenue for the first quarter of 2025. This increase in gross margin resulted primarily from a favorable shift in revenue mix to U.S. sales, which carry a higher margin than international sales. Upsetting most of the improvement in the mix in revenue was a $473,000 impairment charge related to excess inventory for which we decided not to extend the useful life. On a non-GAAP basis, which excludes the impact of the impairment charge, adjusted gross profit was $1.2 million, or 34.1% of revenue. This adjusted gross margin was below our expectations, primarily due to additional compensation expense for the operations team in Tel Aviv, who maintained operations during very difficult conditions throughout the recent conflict. Total operating expenses for the first quarter of 2026 were $14.7 million, an increase of $2.9 million compared to $11.8 million for the first quarter of 2025. This increase was primarily due to higher staffing levels and marketing activities for the U.S. commercial launch of Seaguard Prime. Financial income was $289,000, essentially flat compared to $294,000 for the first quarter of 2025. Net loss for the first quarter of 2026 was $13.7 million or 16 cents per basic and diluted share compared to a net loss of $11.2 million or 22 cents per basic and diluted share for the same period of 2025. As of March 31, 2026, cash and cash equivalents and marketable securities were $41.6 million compared to $54.2 million at the end of 2025. Turning to the impact of the voluntary action of Seaguard Prime and the temporary discontinuation of commercial activity in the U.S. The decision to initiate the action took place late last week in consultation with FDA after reviewing the technical performance of the duration of the controlled launch. Consequently, we will recognize the financial impact of the U.S. recall of Seaguard Prime in the second quarter of 2026, with a reserve for customer returns of approximately $700,000 and a reserve for inventory impairment and remediation costs of approximately $650,000. As a result of the impact of the temporary discontinuation of commercial activity in the U.S. following the action, we withdrew our prior full year 2026 revenue guidance, at least until the expected FDA approval of our original SeaGuard stent delivery system, which we believe will take place in the third quarter of 2026. Until expected FDA approval of the original Seaguard stent system, we expect to have no commercial activity in the U.S. market, and our source of revenue during that time will be sales of the Seaguard system in international markets. Given the strong U.S. market receptivity to the Seaguard stent, despite the deployment issues of the prime delivery system, we expect the U.S. customer response to the introduction of the original Seaguard system to be very positive following the anticipated FDA approval. This concludes our prepared remarks. We will now open the call for questions. For the Q&A segment, we will be joined by Shane Gleason, Inspire MD's Chief Commercial Officer. Operator?

Thank you. If you would like to ask a question, please press star 11 on your telephone. You will then hear an automated message advising your hand is raised. If you would like to remove yourself from the queue, Press star one one again. We also ask that you wait for your name and company to be announced before proceeding with your question. One moment while we compile the Q&A roster. Our first question today will be coming from the line of Frank Tagenkin of Lake Street Capital Markets. Please go ahead.

Great. Thank you for taking the questions. Hi, guys. I wanted to start with just some clarification around the process to get Seaguard Prime back on the market. Where do you stand in resolving the challenges internally? When can that be complete? And then when can that get resubmitted? And then given the product's been on the market, is there any chance for some sort of expedited review with the FDA to get that on market as soon as possible to meet

your first half-27 deadline? Frank, thanks for the question. We appreciate it. We have already begun a very extensive process in remediating some of these technical challenges for the delivery system. We've identified those early on. We understand the root cause. We've already taken action to solve those. It's now a matter of completing the V&V testing and all of the associated work to get that done and get that resubmitted to FDA, the timeline for approval of those changes remains somewhat uncertain, whether it remains in the statutory category of a design change or expedited is still to be determined. Those two timeframes are different, obviously. But in terms of our confidence in understanding the problem and having solved the issue technically, We have a very clear understanding of that and have already made all the progressive steps to be very confident that this design change will work and will work much better and give us the technical response that we're looking for. At the end of the day, we want a reproducible success in the delivery system and a delivery system, candidly, that's worthy of the best-in-class implant that we know that we have in the market. So we're very encouraged and optimistic that we'll be able to deliver this in early 2027 or sooner.

Got it. Very helpful. And then with the legacy delivery system working through the approval process, how quickly can you relaunch the new delivery system in relation to maybe back committees, scaling up manufacturing capacity? Once you do get that approval in hand, how quickly could we start to see that revenue?

come back. Yeah, Frank, our expectation is that once we have approval, we will be ready and set to launch the original Seaguard. As you know, this product is the one that we sell outside the U.S., so we're full steam ahead on manufacturing capacity. There's no limitations to speak of there. Shane and the team will be working over the next 90 days or so to continue to work through the accounts. We've opened all of the VAC-related topics and really put a very clear plan together as to how we can relaunch as quickly as possible. But there are no constraints at this point other than getting the approval completed, which we anticipate to be in the August window.

Okay, that's helpful. And then maybe just one last one, and I appreciate all the time. As you work through this transition period, how should we think about OPEX trending through this time? And then as it relates to OPEX, just maybe talk about retaining key talent through this transit period. Mike, you want to take that one?

Yeah, sure. Yeah, so I think we expect to see OPEX continue to increase slightly as we move through the year. We will be making investments in R&D, you know, with the Seaguardians 3 clinical trial kicking off very soon. There will be some increased expenditures in R&D as a result of that. As far as selling and marketing in GeneAgo, I would expect those to be relatively stable. I think we're going to probably put a pause on in terms of headcount investment until we, you know, we have a little more clarity about the timeline for FDA approval for Seaguard. So, I think that's the general path you should expect to see with OPEX.

Great.

Thank you. One moment for the next question. And our next question will be coming from the line of Adam Mater of Piper Sandler. Please go ahead.

Hi, good afternoon. Thank you for taking the questions. I actually wanted to pick up on one of the questions that Frank just asked around VACs. So, I just wanted to confirm the existing customer base, the users of Seaguard Prime, those centers should be grandfathered in with the Seaguard original delivery system. So, you can hit the ground running immediately upon FDA clearance. Did I hear that correctly, Marvin?

Yeah, why don't we have Shane maybe clarify that point because he's been working through that with the team.

Yeah, happy to. I think the short answer is, this is one of those where all politics is local applies, but that's something that our team in the field is staying close to. And you're exactly right. In a lot of those cases, what they really approved is the stent. And you can probably imagine that the team has been out there having a lot of conversations over the last couple of working days here. And what we're hearing is that many of them don't want to lose access today, and all of are looking forward to gaining access as soon as it's available so um there will be you know the process will look a little bit different at each and every center like it does just for the vac process in general but uh we expect receptivity to be uh able to uh plug right back in okay i

appreciate the color shane thanks for all that and i guess it's a related question but as you think about you know any potential impacts to prospective customers um you know while you don't have a delivery system while you're not selling into the u.s market are you allow are you are you able to advance those conversations with prospective accounts or does this also kind of put a a temporary auditorium on the uh on that process i think there's uh probably the best way to put it

is that there are some some things that you can discuss and others you can't uh clinical data results uh those are things that are that are fair game um specific you know priceless things like that are things that you can't do until you have that uh until you have uh cguard for example or cguard prime and the 80 shaft approved but uh we can remain engaged and again kind of follow the the rules of each site that we have and, you know, continue to engage with customers that way. From talking to the physicians and centers that we have, they kind of fall into really one of two different buckets. One is they're disappointed to be losing access to what they have today, and they'll welcome it back as soon as they can get it. And the other one is those who understand, who may have had challenges, and are looking forward to getting a more reliable system. So, in both of those cases, there's a lot of receptivity to bringing us in, whether they've started using us or not at this point, when we get those other

products available. Adam, let me just add one quick comment to your question there and Shane's answer. Although the launch of Seaguard Prime was controlled to a certain extent, our marketing of that device was very broad and quite aggressive. I think that the market in general understands the value of the Seaguard implant. And so on balance, I think over the last several months, we've created a tremendous amount of interest and demand. So although we'll be limited in our ability to sell the product, I think that awareness is clearly going to create a tailwind once we get back in the market with Seaguard first and then Seaguard Prime. And also remember that the SeaGuard device was used in the majority of the SeaGuardian PMA trial. So we have a lot of familiarity out there within the investigator base that participated in that. Okay, perfect.

I will leave it there and I'll hop back in the queue. Thank you. Thanks, Adam. Thank you. As a

reminder, if you would like to ask a question, please press star 11 on your telephone. One moment for the next question. And our next question is coming from the line of Anthony Venditti of

maximum group. Your line is open. Thank you. Yeah, I was just wondering, Marvin, if you could talk a little bit about, you know, the decision to voluntarily do the recall here in the U.S. and then the effect, if any, on the European business. Do you expect business to slow down there based on this voluntary recall. And then as you work with the FDA, do you anticipate any potential labeling changes, or do you think that that's really not going to be the issue at this point, or is it too early to tell?

Thanks. Yeah, thanks, Anthony. Let's start with the OUS market. As you can see from the results in the first quarter, the OUS market is actually standardized and using our original Seaguard delivery system, and that business continues to grow nicely. And the demand is clear that in the OUS market, as we have continued to mature over the years, we're growing nice share there. So the OUS market will continue to operate and we'll count on that to be a robust part of the overall story. The decision that we made really, we felt was necessary, both in the short and long term to achieving our objective. You know, you can't lead in a market of this size, scale, and transition without, you know, 100% confidence in both the implant and the delivery system. And as I said before, we absolutely are committed to having a delivery system that's worthy of these best-in-class implant results of Seaguard. So as much as these decisions are somewhat difficult to make, we felt that this was the right time to make it so that we can move forward in an unencumbered way of taking advantage of a market shift, candidly, to stenting that has been on the docket for the last 20 years. And we find ourselves in a very unique position of being able to take full advantage of that. But we wanted the complete story to be able to do that. And we feel very good about our TCAR entry with the short shaft indicated C-Guard for TCAR procedures and starting our switch guard neuroprotection studies shortly. As far as changes are concerned, these are simply design and technical changes. There will be no changes to speak of in terms of the use of the product, IFU and otherwise. And as I said before, we have a very clear understanding of what needs to be done. We're confident we can expedite that quickly. and get that into the FDA so that we can get things back on track. In the interim, we'll utilize Seaguard and then have Seaguard Prime back in the market in both the 135 and the 80.

Okay, great. Maybe just lastly, as you were doing the sort of rollout and testing, were there not, you know, I guess it was maybe too early to tell, But clearly, I guess these issues with the delivery system weren't or didn't manifest itself early on, but now, you know, it's become an issue in terms of, you know, just like you said, complaints in terms of comfort, but not in terms of your system, but the delivery system. Why do you think it wasn't picked up earlier? Maybe just a little color on that.

Yeah, Anthony, it's a good question. we had limited user experience in the PMA trial. We put Seaguard Prime into that fairly late in the process. And once we began to launch this into a broader market, the combination of new user experiences, the combination of a lot of different accessory devices being used with Seaguard Prime, you know, just lent itself to a learning curve that we had to appreciate once we had this product fully engaged in the market. And that's why we did a controlled launch to begin with to keep very close to those details. So I think the learning curve was somewhat unfortunate, but I think we got ahead of it early. We understood the core issue and knew what to do to address it. Unfortunately, we've had to take a pause here for a 90 or 100 day window in order to get things uh put together properly but we felt like under the circumstances uh this was the right thing to do so that we can we can come out of the blocks on the other side of this in a in a very clear uh clear way to continue to grow share okay great thank you very much i appreciate it i'll

hop back in thank you thanks thank you and there are no more questions in the queue i would like to go ahead and turn the call back over to management for closing remarks please go ahead

Thank you very much. I'd like to thank everyone for joining today's call and the continued support in our mission to lead and transform the carotid interventional market and stroke prevention. We look forward to a lot of success over the next couple of quarters. Thanks very much.

This does conclude today's program. Thank you for joining. You may now disconnect.