Good afternoon and thank you for joining us on today's call. At this time, all participants are in a listen-only mode. As a reminder, this conference call is being recorded today, November 14, 2018. I would now like to turn the conference call over to Scott Youngstrom, CFO of ReShape Lifesciences. Please go ahead.

Good afternoon and thank you for joining us on today's call. I'm pleased to be joined by Dan Gladney, our President, CEO and Chairman of the Board, who'll provide an overview of the Company's recent activities and business highlights. I will then review our financial results for the third quarter of 2018. And then turn the call back over to Dan 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 filed April 2, 2018, and our Quarterly Report on Form 10-Q filed today November 14, 2018. As an additional reminder, our stock is listed on NASDAQ, trading under the ticker RSLS. I will now turn the call over to Dan Gladney. Dan?

Thanks Scott. Good afternoon, everyone, and thank you for joining us. On today's call, we look forward to updating you on our results from the third quarter and on progress we've made as a business. We've had some challenges in the last few months here at ReShape Lifesciences as difficulties raising capital in the quarter had an impact on our ability to invest in the organization and sell our products to their full potential. However, Scott, and I and our team have been working hard to push forward on a mission and on a company that we truly believe in, and I am very pleased to share with you that over the course of the last month, we have raised $7.8 million in net cash at the market financing offering or ATM. I would like to start by addressing the capital structure and cash position at ReShape. One of our major areas of focus this quarter has been to simplify our capital structure, so that we could further fund the Company and get on track with executing our strategy and selling our valued products. We were excited to announce a few weeks ago that our Series D preferred shares have been retired, removing most of the overhang on our stock. And as of today, the only remaining preferred shares outstanding are some Series B and C preferred shares that are convertible into 61,328 shares of the Company's common stock. Additionally, late last month, our shareholders voted in favor of a Reverse Stock Split, an approval, which we believe was crucial to opening up access to capital for ReShape Lifesciences. As I mentioned earlier, we've raised $7.8 million in net proceeds since October, the majority of which was raised after the Reverse Split was approved. With this capital and the hard…

Thanks Dan. Moving to our financial results for the third quarter 2018. For the three months ended September 30, 2018, we reported sales of $350,000, a 46% decrease compared to revenues of $653,000 in the three months ended June 30, 2018 and a 3% decrease versus the $360,000 of revenue reported for the three months ended September 30, 2017. For 2017 amounts, a reminder that revenue included $250,000 of service revenue related to an engineering services contract and does not include any revenue from gastric balloon sales. We reported gross profit of $86,000 for the three months ended September 30, 2018 compared to $19,000 in the second quarter of 2018 and $145,000 for the three months ended September 30 2017. The $250,000 of service revenue in 2017 generated over $90,000 of gross margin for that period. Our team sold 218 balloons in the third quarter of 2018, as compared to the 414 units sold in the second quarter of 2018, representing a 48% decrease. We sold 110 balloons, OUS have similar 47% decrease from quarter two. This was primarily due to our reduced marketing spend and the follow-on FDA advisory letter that Dan mentioned earlier. Selling, general and administrative expenses for the quarter were $6.4 million as compared to $6.7 million for the second quarter of 2018 and compared to $4.6 million for the third quarter of 2017. Included in SG&A expenses this quarter were $2.9 million of non-cash expenses consisting of $1.3 million of the write-down of vBloc inventory, $756,000 in stock-based compensation and $675,000 of amortization of intangibles expense. Included in SG&A expenses in the second quarter of 2018 were over $1.9 million of similar non-cash expenses. These results significantly lower than the $10 million in the first quarter of 2018 due primarily to the cost reduction programs…

Thank you, Scott. While we are faced with some challenges at ReShape this quarter due to significant capital constraints. The good news is that most recently we've made great progress on funding our Company and simplifying our capital structure. And operationally we are in a solid position and are now ready to forge ahead. With this recent successful capital infusion of $7.8 million, we can now get back on track. Execute our strategic plan, and bring our revenues back to normalized levels. The entire team at ReShape Lifesciences continues to be committed to fight against obesity, and we are dedicated to becoming a premier provider of anatomy friendly, minimally invasive technologies designed to treat patients battling this epidemic disease. We thank our employees and investors for your support. Thank you everyone for joining us today and have a great evening.