Full Press Release Details
Reports 2019 Second Quarter Financial Results
LOUIS, MO, August 8, 2019 - Stereotaxis (OTCQX: STXS), the global leader in innovative robotic technologies for
the treatment of cardiac arrhythmias, today reported financial results for the second quarter ended June 30, 2019. In a separate
press release issued concurrently with this release, Stereotaxis announced a $25 million private placement equity financing.
second quarter was an exciting period for Stereotaxis and a pivotal turning point in our effort to reestablish a long-term
growth trajectory," said David Fischel, Chairman and CEO. "Since showcasing our innovation accomplishments and
strategy at the Heart Rhythm Society conference in May, many existing and potential customers have visited our headquarters
to view our innovations first hand. The broad, enthusiastic response validates that our innovation and strategic decisions
were sound and that our plan is medically and commercially attractive. We are confident in our expectation for significant
revenue growth in the years ahead."
mentioned previously, in the second quarter Stereotaxis announced several innovation accomplishments and programs:
| Stereotaxis Genesis RMN System - initial launch of a next generation robotic system that is designed to provide the established benefits and reliability of robotic magnetic navigation in an architecture that is faster, smaller, lighter and more flexible. | ||
| Stereotaxis Imaging Model S - launch of an advanced x-ray imaging solution offered in combination with Stereotaxis Genesis RMN to increase the accessibility and affordability of robotics in electrophysiology. | ||
| Proprietary Magnetic Ablation Catheter - development program proceeding on an advanced next-generation robotically-navigated magnetic ablation catheter. | ||
| Acutus Mapping Integration & OpenMappingAPI - integration with Acutus' novel mapping system was successfully accomplished using a software architecture that facilitates a more open, collaborative environment. |
Fischel continued, "With the financing announced today, Stereotaxis has the financial strength to accelerate the development
and commercial introduction of these innovations, as well as to fund a second wave of innovations in electrophysiology and beyond."
Quarter 2019 Financial Results
for the second quarter of 2019 totaled $6.8 million compared to $7.6 million in the prior year second quarter. This decrease was
primarily due to reduced service revenue from system moves as well as certain inactive accounts that have aged and no longer maintain
active service contracts, partially offset by a modest increase in procedure volume compared to the prior year second quarter.
margin in the quarter was 83% of revenue, consistent with the 82% reported in the second quarter of 2018. Operating expenses in
the second quarter of $7.1 million increased from $6.8 million in the prior year quarter. The increase in operating expenses reflects
significantly increased investment in research and development with reduced general, administrative and selling expenses.
loss and net loss in the second quarter were ($1.5) million and ($1.4) million, respectively, compared to ($0.6) million for both
in 2018. Negative free cash flow for the quarter was ($0.5) and was consistent with previously provided guidance for 2019.
Balance and Liquidity
June 30, 2019, Stereotaxis had cash and cash equivalents of $8.5 million and no debt. Pro forma, including the financing announced
today and deducting financing related fees and expenses, Stereotaxis would have held approximately $31.6 million in cash and cash
equivalents as of June 30, 2019 with a stockholders' equity balance of $21.8 million.
Year 2019 Expectations
innovation accomplishments support an expectation of robust and consistent overall revenue growth beginning in the coming quarters
and accelerating throughout 2020.
considering the financing announced today, Stereotaxis would have reiterated its expectation to end 2019 with greater than $6.0
million in net cash and to reach profitability without the need for additional capital.
will host a conference call and webcast today, August 8, 2019, at 9:00 a.m. Eastern Time. To access the conference call, dial
1-800-353-6461 (US and Canada) or 1-334-323-0501 (International) and give the participant pass code 2198862. Participants are
asked to call 5-10 minutes prior to the start time. To access the live and replay webcast, please visit the investor relations
section of the Stereotaxis website at www.stereotaxis.com.
is the global leader in innovative robotic technologies designed to enhance the treatment of arrhythmias and perform endovascular
procedures. Its mission is the discovery, development and delivery of robotic systems, instruments, and information solutions
for the interventional laboratory. These innovations help physicians provide unsurpassed patient care with robotic precision and
safety, improved lab efficiency and productivity, and enhanced integration of procedural information. Stereotaxis' robotic
technology has received various regulatory clearances in the United States, European Union, Japan, Canada, China, and elsewhere.
The Stereotaxis Genesis RMN System is CE marked and will become available in other global geographies subject to regulatory approvals.
Stereotaxis Imaging Model S is CE marked and FDA cleared. For more information, please visit www.stereotaxis.com.
press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe",
"estimate", "project", "expect" or similar expressions. Forward-looking statements inherently
involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors
that would cause or contribute to such differences include, but are not limited to, the Company's ability to raise additional
capital on a timely basis and on terms that are acceptable, its ability to continue to manage expenses and cash burn rate at sustainable
levels, its ability to continue to work with lenders to extend, repay or refinance indebtedness, or to obtain additional financing,
in either case on acceptable terms, continued acceptance of the Company's products in the marketplace, the effect of global
economic conditions on the ability and willingness of customers to purchase its systems and the timing of such purchases, competitive
factors, changes resulting from healthcare reform in the United States, including changes in government reimbursement procedures,
dependence upon third-party vendors, timing of regulatory approvals, and other risks discussed in the Company's periodic
and other filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes
no obligation to update these statements for revisions or changes after the date of this release. There can be no assurance that
the Company will recognize revenue related to its purchase orders and other commitments in any particular period or at all because
some of these purchase orders and other commitments are subject to contingencies that are outside of the Company's control.
In addition, these orders and commitments may be revised, modified, delayed or canceled, either by their express terms, as a result
of negotiations, or by overall project changes or delays.
and Chief Executive Officer
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Revenue: | ||||||||||||||||
| Systems | $ | - | $ | 310,751 | $ | 58,051 | $ | 328,026 | ||||||||
| Disposables, service and accessories | 6,546,115 | 7,240,650 | 13,256,873 | 14,195,008 | ||||||||||||
| Sublease | 251,996 | - | 493,061 | - | ||||||||||||
| Total revenue | 6,798,111 | 7,551,401 | 13,807,985 | 14,523,034 | ||||||||||||
| Cost of revenue: | ||||||||||||||||
| Systems | 6,201 | 457,509 | 57,365 | 661,111 | ||||||||||||
| Disposables, service and accessories | 894,760 | 931,541 | 2,009,119 | 1,993,286 | ||||||||||||
| Sublease | 246,531 | - | 493,061 | - | ||||||||||||
| Total cost of revenue | 1,147,492 | 1,389,050 | 2,559,545 | 2,654,397 | ||||||||||||
| Gross margin | 5,650,619 | 6,162,351 | 11,248,440 | 11,868,637 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 2,695,162 | 2,032,394 | 5,654,381 | 3,995,020 | ||||||||||||
| Sales and marketing | 3,236,516 | 3,457,416 | 6,546,342 | 7,092,413 | ||||||||||||
| General and administrative | 1,178,469 | 1,298,604 | 2,646,629 | 2,537,783 | ||||||||||||
| Total operating expenses | 7,110,147 | 6,788,414 | 14,847,352 | 13,625,216 | ||||||||||||
| Operating loss | (1,459,528 | ) | (626,063 | ) | (3,598,912 | ) | (1,756,579 | ) | ||||||||
| Other income | - | - | - | 2,590,361 | ||||||||||||
| Interest income (expense) | 31,810 | (6,142 | ) | 48,374 | (30,757 | ) | ||||||||||
| Net income (loss) | $ | (1,427,718 | ) | $ | (632,205 | ) | $ | (3,550,538 | ) | $ | 803,025 | |||||
| Cumulative dividend on convertible preferred stock | (357,194 | ) | (357,518 | ) | (710,704 | ) | (711,107 | ) | ||||||||
| Net income attributable to convertible preferred stock | - | - | (42,936 | ) | ||||||||||||
| Net income (loss) attributable to common stockholders | $ | (1,784,912 | ) | $ | (989,723 | ) | $ | (4,261,242 | ) | $ | 48,982 | |||||
| Net income (loss) per share attributed to common stockholder: | ||||||||||||||||
| Basic | $ | (0.03 | ) | $ | (0.02 | ) | $ | (0.07 | ) | $ | 0.00 | |||||
| Diluted | $ | (0.03 | ) | $ | (0.02 | ) | $ | (0.07 | ) | $ | 0.00 | |||||
| Weighted average number of common shares and equivalents: | ||||||||||||||||
| Basic | 60,052,673 | 58,926,545 | 59,936,606 | 45,019,358 | ||||||||||||
| Diluted | 60,052,673 | 58,926,545 | 59,936,606 | 45,728,732 |
| June 30, 2019 | December 31, 2018 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 8,471,914 | $ | 10,796,072 | ||||
| Accounts receivable, net of allowance of $502,251 and $398,847 in 2019 and 2018, respectively | 4,997,148 | 5,021,111 | ||||||
| Inventories, net | 1,560,116 | 1,191,666 | ||||||
| Prepaid expenses and other current assets | 514,408 | 963,700 | ||||||
| Total current assets | 15,543,586 | 17,972,549 | ||||||
| Property and equipment, net | 297,494 | 343,693 | ||||||
| Operating lease right-of-use assets | 5,245,842 | - | ||||||
| Other assets | 168,153 | 198,365 | ||||||
| Total assets | $ | 21,255,075 | $ | 18,514,607 | ||||
| Liabilities and stockholders' equity (deficit) | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,642,049 | $ | 1,726,360 | ||||
| Accrued liabilities | 2,376,058 | 2,642,481 | ||||||
| Deferred revenue | 6,537,988 | 5,825,536 | ||||||
| Current portion of operating lease liabilities | 2,223,023 | - | ||||||
| Total current liabilities | 12,779,118 | 10,194,377 | ||||||
| Long-term deferred revenue | 508,772 | 407,151 | ||||||
| Operating lease liabilities | 3,048,650 | - | ||||||
| Other liabilities | 260,947 | 641,461 | ||||||
| Total liabilities | 16,597,487 | 11,242,989 | ||||||
| Convertible preferred stock: | ||||||||
| Convertible preferred stock, par value $0.001; 10,000,000 shares authorized, 23,855 and 23,900 shares outstanding at 2019 and 2018 | 5,948,953 | 5,960,475 | ||||||
| Stockholders' equity (deficit): | ||||||||
| Common stock, par value $0.001; 300,000,000 shares authorized, 59,383,038 and 59,058,297 shares issued at 2019 and 2018, respectively | 59,383 | 59,058 | ||||||
| Additional paid-in capital | 479,127,279 | 478,179,574 | ||||||
| Treasury stock, 4,015 shares at 2019 and 2018 | (205,999 | ) | (205,999 | ) | ||||
| Accumulated deficit | (480,272,028 | ) | (476,721,490 | ) | ||||
| Total stockholders' equity (deficit) | (1,291,365 | ) | 1,311,143 | |||||
| Total liabilities and stockholders' equity (deficit) | $ | 21,255,075 | $ | 18,514,607 |