InMode Response Letter to DOMA by Moshe Mizrahy, CEO, Dated May 28, 2025

Rhea-AI Summary

InMode (NASDAQ: INMD) CEO Moshe Mizrahy has responded to concerns raised by DOMA Perpetual Capital Management LLC in a public letter. The response addresses several key issues:

Regarding share buybacks, InMode has repurchased $412M in shares over the past 12 months and $508M in the last 2.5 years, aiming to return capital to shareholders tax-efficiently. On manufacturing, Mizrahy defended keeping production in Israel, citing the company's expertise and need for proximity to R&D teams. He noted successful on-time deliveries to 90 countries despite ongoing regional conflicts.

Addressing North American sales concerns, Mizrahy attributed the business slowdown to macroeconomic factors and financing difficulties for medical equipment rather than organizational issues. He also defended his leadership style against DOMA's criticism, noting his role as co-founder and long-term manager of the company.

Positive

• Substantial share buyback program with $412M in last 12 months and $508M in 2.5 years
• Maintained consistent product delivery to 90 countries despite regional conflicts
• All sales management positions are fully staffed

Negative

• Experiencing business slowdown in North America
• Facing challenges with medical equipment financing
• Management facing criticism from major investor regarding leadership style

YOKNEAM, Israel, May 28, 2025 /PRNewswire/ -- InMode Ltd. (Nasdaq: INMD) ("InMode"), a leading global provider of innovative medical technologies, today sent a letter to DOMA Perpetual Capital Management LLC ("DOMA") CEO and CIO Pedro Escudero in response to issues presented in his public letter dated May 9, 2025.

The letter can be viewed here

The full text of the letter follows:

May 28, 2025

Mr. Pedro Escudero
CEO and CIO
DOMA, Perpetual Capital Management LLC

Dear Mr. Escudero,

This letter is in response to your letter dated May 9, 2025.

First, I would like to thank you for voting for me to be re-elected to the Board of Directors. I really appreciate your vote of confidence and trust. I understand from this that you believe that my contribution to InMode's Board of Directors is important.

I am answering your letter as the CEO of InMode and presume that Dr. Michael Anghel -the Chairman of InMode – will answer your letter as well.

With regards to the claims you specified in your letter:

Buyback – As you know Pedro, in the last 12 months – we bought-back $412M of InMode shares, and in the last 2.5 years – we bought back $508M of InMode shares. Our goal is to return capital to our shareholders in the most tax-efficient manner possible. I believe that our buy-back program is reasonable for both the company as well as its shareholders and takes into consideration the tax rules in Israel.

Moving production capacity out of Israel – I don't know how many industrial companies you have managed during your career, but InMode's supply chain and manufacturing team has many years of experience in manufacturing medical equipment in Israel from many aspects, including regulation, quality and cost. As I wrote to you in my letter dated March 6, 2025 - InMode is not a mass-production company and therefore the manufacturing capacity must be in close proximity to the engineering, R&D and logistic management teams. We have been (and still are) enduring a war that has taken place in Israel over the last two years, and yet we have supplied every platform to every country/destination (90 countries) on time, without compromising our quality.

Sales Organization in North America - as I explained in my letter dated March 6, 2025, all of our sales management positions are manned, and work in a most professional manner. Unfortunately, the slowdown in our business in North America, which is mainly due to macro-economic factors and difficulty in financing medical capital   equipment are the main reasons for the slowdown in our business in North America, and not the management of our sales organization.

My performance as CEO – I believe that writing that my management style is "reckless and antagonistic", with "dismal leadership and poor performance as CEO" is unbased and unethical. I am the co-founder of this company and have been managing it since day one along with my co-founder – Dr. Michael Kreindel – in a very "lean and mean" manner. I will leave the decision regarding myself to my Board of Directors.

Regards,
Moshe Mizrahy
CEO, InMode Ltd.

About InMode

InMode is a leading global provider of innovative medical technologies. InMode develops, manufactures, and markets devices harnessing novel radio frequency ("RF") technology. InMode strives to enable new emerging surgical procedures as well as improve existing treatments. InMode has leveraged its medically accepted minimally invasive RF technologies to offer a comprehensive line of products across several categories for plastic surgery, gynecology, dermatology, otolaryngology, and ophthalmology. For more information about InMode, please visit www.inmodemd.com.

Forward-Looking Statements

The information in this press release includes forward-looking statements within the meaning of the federal securities laws. These statements generally relate to future events or InMode's future financial or operating performance, including the 2025 revenue projection described above. Actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. In some cases, you can identify these statements because they contain words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "predict," "project," "will," "would" and similar expressions that concern our expectations, strategic plans or intentions. Forward-looking statements are based on management's current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Consequently, actual results could differ materially from those indicated in these forward-looking statements. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements included in InMode's Annual Report on Form 20-F filed with the Securities and Exchange Commission on February 04, 2025, and our future public filings. InMode undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which pertain only as of the date of this press release.

Company Contact:

Yair Malca
Chief Financial Officer
Phone: (949) 305-0108
Email: Yair.Malca@inmodemd.com

Investor Relations Contact:

Miri Segal
MS-IR LLC
Email: ir@inmodemd.com

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SOURCE InMode Ltd.

FAQ

How much has InMode (INMD) spent on share buybacks in the past year?

InMode has spent $412 million on share buybacks in the last 12 months, and a total of $508 million over the past 2.5 years.

Why is InMode (INMD) keeping its production in Israel despite investor concerns?

InMode maintains production in Israel due to its experienced manufacturing team, proximity to R&D and engineering teams, and proven track record of on-time deliveries to 90 countries, even during regional conflicts.

What are the main reasons for InMode's (INMD) business slowdown in North America?

According to CEO Mizrahy, the slowdown is primarily due to macroeconomic factors and difficulties in financing medical capital equipment, not organizational issues.

What concerns did DOMA raise about InMode's (INMD) CEO?

DOMA criticized CEO Moshe Mizrahy's management style as 'reckless and antagonistic' and cited 'dismal leadership and poor performance,' claims which Mizrahy disputed as unfounded.