Ladies and gentlemen, thank you for standing by, and welcome to the ReShape Lifesciences Second Quarter Conference Call. I would now like to hand the conference to your speaker today, [ Carol Ruth. ] Please go ahead, ma'am.

Thank you. Good afternoon, and thank you for joining us on today's call. I am 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 second quarter 2020 and then return the call back over to Bart for closing remarks. 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. The actual results could differ materially from those discussed due to 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 and in our quarterly report on Form 10-Q that we will be filing later today. An additional reminder, our stock is listed on over-the-counter, OTC trading under the ticker RSLS. I will now turn the call over to CEO, Bart Bandy. Bart?

Thanks, [ Carol. ] Good afternoon, everyone, and thank you for joining us today. The second quarter was a significant one for ReShape, as we delivered on our promise to launch a unique patient after care model that complements and reinforces the entire weight loss continuum. In June, we introduced our new ReShapeCare service, a telehealth-enabled customizable platform that provides physicians with a reimbursed valuable tool for enhanced patient engagement. ReShapeCare provides live and virtual support for clinicians and their patients regardless of the patient's type of surgical weight loss procedure or therapy. Not only will this program help patients after weight loss surgery, it provides support to patients who may have lost contact with their previous health care professionals as well as patients enrolled in nonsurgical medically supervised weight loss programs. The ReShapeCare platform equips bariatric surgeons and physicians with clinically proven resources that optimize patient engagement and outcomes, both short and long term. Furthermore, ReShapeCare is the first program of its kind that provides third-party insurance reimbursement, which we expect will encourage adoption and participation. This ability for physician-directed health care professionals to interact with their patients virtually has become increasingly important as a result of the COVID-19 pandemic. Obesity is one of the most prevalent and severe underlying conditions for COVID-19. And it is a great importance that this demographic of patients have access to such a platform and a network of qualified health care professionals to monitor their health and progress. ReShapeCare is the result of our company's commitment and focus to drive revenue and shareholder value by expanding our strategic offerings through innovative and differentiated program development. We believe the adoption of this service will further strengthen our relationships with physicians and hence, our overall position in the weight loss market and have an immediate…

Thanks, Bart, and good afternoon, everyone. As Bart mentioned, the second quarter reflected a full quarter impact from COVID, but the trends in the back half of the quarter were very encouraging. As such, revenues for the 3 months ended June 30, 2020, was $1.7 million compared to $4.4 million in revenue for the 3 months ended June 30, 2019. Our second quarter revenue numbers reflect $1.5 million in U.S. shipments and $200,000 from shipments OUS. Gross profit for the second quarter of 2020 was $800,000, representing a gross profit margin of 49% compared to $2.8 million for the 3 months ended June 30, 2019, and a gross margin of 64%. The lower gross margin is primarily the result of lower sales due to the COVID-19 pandemic. Sales and marketing expenses for the 3 months ended June 30, 2020, were $800,000 compared to $1.2 million for the 3 months ended June 30, 2019. The decrease is primarily due to a reduction in payroll-related expenses of $100,000 and global sales commissions of $100,000 due to a temporary reduction of staff and sales caused by the COVID-19 pandemic. In addition, the company had a reduction in stock-based compensation of approximately $100,000 and a reduction in advertising and marketing costs of $100,000 as well. General and administrative expenses were $2.5 million for the second quarter of 2020 compared to $5.5 million for the 3 months ended June 30, 2019. The $3 million decrease is primarily related to decreases in audit, consulting and other professional service providers of $1.5 million, legal fees of $1.2 million and stock-based compensation of $300,000. Research and development expenses were $500,000 for the second quarter of 2020 compared to $1 million for the 3 months ended June 30, 2019. The $500,000 decrease is primarily related to a temporary slowdown…

Thanks, Tom. As COVID-19 continues to impact our industry, our country and the global market, we will remain vigilant in driving ReShape towards our goal of being the preferred clinical weight loss company for clinicians and patients. As we continue to progress towards this objective, we will continue to monitor this present and fluid situation, adapting as warranted while collaborating with clinical, government and industry leaders to accelerate the recovery and growth of weight loss surgery and care. In closing, I'm very pleased with our progress, and in the second quarter, we look forward to what lies ahead for ReShape Lifescience sand in the third quarter and fourth quarter as well. Thank you to our investors, Board, employees and customers for your continued support. We look forward to sharing our future with you.

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