Full Press Release Details
Reports 2021 Third Quarter Financial Results
LOUIS, Nov. 11, 2021 (GLOBE NEWSWIRE) - Stereotaxis (NYSE: STXS), the global leader in innovative robotic technologies
for the treatment of cardiac arrhythmias, today reported financial results for the third quarter ended September 30, 2021.
are proud of the progress made on multiple fronts in the third quarter," said David Fischel, Chairman and CEO. "We continue
to demonstrate year-over-year and sequential revenue growth while improving commercial execution, establishing key strategic collaborations,
advancing a wave of upcoming innovations, and enhancing our infrastructure and team."
global adoption of robotic systems drove revenue growth in the quarter. We received orders for two Genesis systems in the United
States and Europe since our last call. Progress on multiple other capital opportunities supports our confidence in additional near-term
orders and an approximate doubling of robotic system revenue next year."
emerged as a third geographic pillar for Stereotaxis with our announcement of a strategic collaboration with MicroPort EP. Our collaboration
provides for a robust product ecosystem and commercial infrastructure, and we have initiated early development, regulatory and commercial
activities with the goal of significant long-term value creation."
proprietary robotically-navigated magnetic ablation catheter overcame initial supply chain disruptions, and we remain on track for completion
of the required testing needed for a European regulatory submission and US pivotal trial early next year. An additional set of innovations
will be showcased next month at Stereotaxis' Innovation Day. We are confident in the transformative impact these innovations will
have on patients, physicians, providers, and on Stereotaxis' strategic and financial future."
progress takes place while we are enhancing our infrastructure and growing our team. We are set to move into an enhanced and enlarged
new headquarters at year end. We are pleased to welcome 14 incremental new team members year-to-date. All this takes place with continued
financial discipline with total cash use year-to-date of less than two million dollars."
Third Quarter Financial Results
for the third quarter of 2021 totaled $9.1 million, up 5% from $8.7 million in the prior year third quarter. System revenue was $3.5
million and recurring revenue was $5.3 million, compared to $3.0 million and $5.5 million respectively in the prior year third quarter.
margin for the third quarter of 2021 was 52% of revenue, with system gross margin of 5% and recurring revenue gross margin of 86%. Operating
expenses in the quarter of $9.4 million include $2.6 million in non-cash stock compensation expense. Excluding stock compensation expense,
adjusted operating expenses in the current quarter were $6.8 million, compared to the prior year adjusted operating expenses of $5.5
million. Operating expenses in the current year primarily reflect increased R&D spending and measured investment and hiring across
key business functions.
loss and net loss for the third quarter of 2021 were both ($4.6) million, compared to ($1.6) million for both in the previous year. Adjusted
operating loss and adjusted net loss for the quarter, excluding non-cash stock compensation expense, were ($2.0) million, compared to
($0.8) million for both in the previous year. Negative free cash flow for the third quarter was ($1.5) million, compared to ($0.2) million
in the prior year third quarter. Negative free cash flow for the first nine months of 2021 totaled ($1.9) million, compared to ($3.9)
million during the same period the previous year.
Balance and Liquidity
September 30, 2021, Stereotaxis had cash and cash equivalents, including restricted cash and compensating balances, of $42.8 compared
to $44.2 million as of December 31, 2020.
Looking Expectations
maintains its guidance of approximately $11 million in system revenue for 2021, with an approximate doubling of system revenue in 2022
contributing to robust double digit overall revenue growth for the year. Stereotaxis expects to start 2022 with greater than $40 million
in cash. This balance sheet allows it to reach profitability without the need for additional financings.
will host a conference call and webcast today, November 11, 2021, at 10:00 a.m. Eastern Time. To access the conference call, dial 1-800-367-2403
(US and Canada) or 1-334-777-6978 (International) and give the participant pass code 1935969. 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
(NYSE: STXS) 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 Magnetic Navigation technology is used in the United States, Europe, Asia, and elsewhere. For more information, please visit
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. Factors that would cause or contribute to such differences
include, but are not limited to, the Company's ability to manage expenses at sustainable levels, 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 technology,
competitive factors, changes resulting from healthcare policy, dependence upon third-party vendors, timing of regulatory approvals, the
impact of pandemics or other disasters, 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 because some of these purchase orders and other commitments are subject to contingencies that
are outside of the Company's control and may be revised, modified, delayed, or canceled.
and Chief Executive Officer
STATEMENTS OF OPERATIONS
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Revenue: | ||||||||||||||||
| Systems | $ | 3,541,360 | $ | 2,953,005 | $ | 8,830,052 | $ | 2,965,774 | ||||||||
| Disposables, service and accessories | 5,318,562 | 5,504,048 | 17,210,790 | 16,099,915 | ||||||||||||
| Sublease | 246,530 | 246,530 | 739,590 | 739,590 | ||||||||||||
| Total revenue | 9,106,452 | 8,703,583 | 26,780,432 | 19,805,279 | ||||||||||||
| Cost of revenue: | ||||||||||||||||
| Systems | 3,374,857 | 3,031,440 | 6,199,980 | 3,253,976 | ||||||||||||
| Disposables, service and accessories | 750,507 | 747,285 | 2,558,414 | 2,068,085 | ||||||||||||
| Sublease | 246,530 | 246,530 | 739,590 | 739,590 | ||||||||||||
| Total cost of revenue | 4,371,894 | 4,025,255 | 9,497,984 | 6,061,651 | ||||||||||||
| Gross margin | 4,734,558 | 4,678,328 | 17,282,448 | 13,743,628 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 2,499,789 | 1,952,641 | 7,583,908 | 6,038,753 | ||||||||||||
| Sales and marketing | 2,910,134 | 2,822,680 | 8,902,100 | 8,279,853 | ||||||||||||
| General and administrative | 3,944,452 | 1,466,046 | 10,335,100 | 4,962,227 | ||||||||||||
| Total operating expenses | 9,354,375 | 6,241,367 | 26,821,108 | 19,280,833 | ||||||||||||
| Operating loss | (4,619,817 | ) | (1,563,039 | ) | (9,538,660 | ) | (5,537,205 | ) | ||||||||
| Interest (expense) income, net | 1,258 | (9,933 | ) | (5,585 | ) | 71,596 | ||||||||||
| Gain on extinguishment of debt | - | - | 2,182,891 | - | ||||||||||||
| Net loss | $ | (4,618,559 | ) | $ | (1,572,972 | ) | $ | (7,361,354 | ) | $ | (5,465,609 | ) | ||||
| Cumulative dividend on convertible preferred stock | (338,718 | ) | (343,101 | ) | (1,006,466 | ) | (1,028,950 | ) | ||||||||
| Net loss attributable to common stockholders | $ | (4,957,277 | ) | $ | (1,916,073 | ) | $ | (8,367,820 | ) | $ | (6,494,559 | ) | ||||
| Net loss per share attributed to common stockholders: | ||||||||||||||||
| Basic | $ | (0.07 | ) | $ | (0.03 | ) | $ | (0.11 | ) | $ | (0.09 | ) | ||||
| Diluted | $ | (0.07 | ) | $ | (0.03 | ) | $ | (0.11 | ) | $ | (0.09 | ) | ||||
| Weighted average number of common shares and equivalents: | ||||||||||||||||
| Basic | 75,700,389 | 74,488,771 | 75,476,381 | 72,004,956 | ||||||||||||
| Diluted | 75,700,389 | 74,488,771 | 75,476,381 | 72,004,956 |
| September 30, 2021 | December 31, 2020 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 40,243,223 | $ | 43,939,512 | ||||
| Restricted cash - current | 1,604,331 | - | ||||||
| Compensating cash arrangement | 251,548 | 250,620 | ||||||
| Accounts receivable, net of allowance of $153,148 and $123,614 at 2021 and 2020, respectively | 5,073,265 | 3,515,136 | ||||||
| Inventories, net | 3,854,572 | 3,295,457 | ||||||
| Prepaid expenses and other current assets | 2,383,673 | 1,716,014 | ||||||
| Total current assets | 53,410,612 | 52,716,739 | ||||||
| Property and equipment, net | 1,153,231 | 195,129 | ||||||
| Restricted cash | 700,000 | - | ||||||
| Operating lease right-of-use assets | 6,403,035 | 2,235,442 | ||||||
| Other assets | 253,416 | 308,515 | ||||||
| Total assets | $ | 61,920,294 | $ | 55,455,825 | ||||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities: | ||||||||
| Short-term debt | $ | - | $ | 1,185,058 | ||||
| Accounts payable | 3,937,228 | 1,608,636 | ||||||
| Accrued liabilities | 2,562,390 | 3,209,235 | ||||||
| Deferred revenue | 6,688,239 | 5,282,770 | ||||||
| Current portion of operating lease liabilities | 654,611 | 2,287,487 | ||||||
| Total current liabilities | 13,842,468 | 13,573,186 | ||||||
| Long-term debt | - | 973,252 | ||||||
| Long-term deferred revenue | 1,793,298 | 548,915 | ||||||
| Operating lease liabilities | 5,911,757 | - | ||||||
| Other liabilities | 215,861 | 131,231 | ||||||
| Total liabilities | 21,763,384 | 15,226,584 | ||||||
| Series A - Convertible preferred stock: | ||||||||
| Convertible preferred stock, Series A, par value $0.001; 22,387 and 22,513 shares outstanding at 2021 and 2020, respectively | 5,583,768 | 5,605,323 | ||||||
| Stockholders' equity: | ||||||||
| Convertible preferred stock, Series B, par value $0.001; 10,000,000 shares authorized, 5,610,121 shares outstanding at 2021 and 2020 | 5,610 | 5,610 | ||||||
| Common stock, par value $0.001; 300,000,000 shares authorized, 74,579,198 and 73,694,203 shares issued at 2021 and 2020, respectively | 74,579 | 73,694 | ||||||
| Additional paid-in capital | 530,019,539 | 522,709,846 | ||||||
| Treasury stock, 4,015 shares at 2021 and 2020 | (205,999 | ) | (205,999 | ) | ||||
| Accumulated deficit | (495,320,587 | ) | (487,959,233 | ) | ||||
| Total stockholders' equity | 34,573,142 | 34,623,918 | ||||||
| Total liabilities and stockholders' equity | $ | 61,920,294 | $ | 55,455,825 |