Stereotaxis Reports 2019 Full Year Financial Results
March 10 2020 - 8:00AM
Stereotaxis (NYSE: STXS), the global leader in innovative robotic
technologies for the treatment of cardiac arrhythmias, today
reported financial results for the fourth quarter and full year
ended December 31, 2019.
“The past year was transformative for
Stereotaxis with significant progress financially, commercially and
technologically,” said David Fischel, Chairman and CEO. “We are
excited for the coming year and pleased with the momentum with
which we have begun 2020. The start of this year has been marked by
purchase orders for two robotic systems, successful initial animal
studies with our proprietary magnetic ablation catheter, and FDA
clearance for the Genesis RMN® System.”
Key accomplishments in 2019 include:
- Successful integration with Acutus Medical’s advanced mapping
technology and implementation of an OpenMappingAPI software
architecture.
- Launched the Genesis RMN System, a highly innovative
next-generation robotic system, along with Stereotaxis Imaging
Model S, a tightly-integrated x-ray solution developed in
collaboration with Omega Medical.
- Entered into a strategic collaboration with Osypka AG to
develop a proprietary robotically-navigated magnetic ablation
catheter and to support a long-term broad collaboration in
electrophysiology.
- Celebrated the inaugural graduating class of the Robotic
Electrophysiology Fellows Program and enrolled over forty fellows
for the 2020 and 2021 graduating classes.
- Raised $25 million in a private placement from select
healthcare and growth oriented institutional investors.
- Listed Stereotaxis’ common stock on the NYSE American
Exchange.
- Implemented broad integration with advanced preoperative
mapping technologies from ADAS 3D, inHeart, and Catheter
Precision.
- Thirty-four peer-reviewed scientific papers were published on
Stereotaxis robotic technology.
David Fischel continued, “We start 2020 in a
strong financial position with $30 million in cash, no debt, and a
modest controlled operating loss as we invest in meaningful
innovation and growth initiatives. The past year’s financial
accomplishments included listing on the NYSE American Exchange and
attracting new high-quality institutional investors.”
“Our commercial focus remains helping
electrophysiologists build successful robotic ablation practices.
We have developed a multifaceted infrastructure to support this
goal. As we enter a phase of renewed robotic system sales,
Stereotaxis is incrementally investing, experimenting and
establishing capabilities that will allow for a robust capital
sales pipeline.”
“The highlight of the past year was the
significant progress made in our innovation and collaboration
strategy. We are proud of our robust investment in innovation and
the positive impact that innovation will have on patients,
physicians, providers, and on Stereotaxis’ financial and strategic
foundation. We are also cognizant that the technologies we have
announced represent just the initial forays into what we can and
will do in electrophysiology and beyond.”
2019 Fourth Quarter and Full Year
Financial ResultsRevenue for the fourth quarter of 2019
totaled $6.9 million. Recurring revenue for the quarter
was $6.3 million and system revenue for the quarter was $0.3
million. Revenue for the full year 2019 totaled $28.9 million.
System revenue for the full year 2019 of $2.1 million increased
31%, reflecting the establishment of a new robotic
electrophysiology practice, and recurring revenue of $25.8 million
decreased by 7%, primarily due to reduced service revenue as
certain inactive accounts age and no longer maintain active service
contracts.
Gross margin for the fourth quarter and full
year 2019 were approximately 75% and 79%, respectively. Operating
expenses in the fourth quarter were $6.3 million, consistent with
the prior year quarter. Operating expenses for the full year 2019
totaled $27.6 million, up from $26.1 million in the prior year
predominantly due to increased investments in R&D and higher
non-cash expenses driven by the appreciating stock price. Operating
loss and net loss in the fourth quarter were ($1.2) million and
($1.1) million respectively. For the full year, operating loss was
($4.8) million and net loss was ($4.6) million. Negative free cash
flow for the full year 2019 was ($4.6) million.
Cash Balance and LiquidityAt
December 31, 2019, Stereotaxis had cash and cash equivalents of
$30.2 million and no debt.
Forward Looking
ExpectationsStereotaxis anticipates robust double-digit
revenue growth in 2020 as commercialization of the Genesis RMN
System drives a resurgence in system sales to new and existing
hospital customers. Robotic system orders are expected to provide
confidence in revenue growth sustaining and potentially
accelerating in 2021 and beyond. Operating expenses are expected to
moderately increase in 2020. Stereotaxis’ balance sheet will allow
the Company to deliver on its commercial and innovation initiatives
over the coming years and reach consistent meaningful profitability
without the need for additional financings. These forecasts include
the currently predicted impact of coronavirus COVID-19.
Conference Call and
WebcastStereotaxis will host a conference call and webcast
today, March 10, 2020, 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
9066267. 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.
About StereotaxisStereotaxis 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. The core components of Stereotaxis’
systems have received regulatory clearance in the United States,
European Union, Japan, Canada, China, and elsewhere. For more
information, please visit www.stereotaxis.com.
This 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 continue to manage expenses
and cash burn rate at sustainable levels, 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 policy in the United
States, including changes in government reimbursement of
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.
Company
Contacts:
David L. FischelChairman and Chief Executive Officer
Kimberly R.
Peery
Chief Financial Officer
314-678-6100investors@stereotaxis.com
STEREOTAXIS,
INC. |
STATEMENTS
OF OPERATIONS |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
Systems |
$ |
311,238 |
|
|
$ |
538,543 |
|
|
$ |
2,066,253 |
|
|
$ |
1,582,053 |
|
Disposables, service and accessories |
|
6,335,049 |
|
|
|
6,729,561 |
|
|
|
25,850,174 |
|
|
|
27,764,564 |
|
Sublease |
|
246,530 |
|
|
|
- |
|
|
|
986,123 |
|
|
|
- |
|
Total
revenue |
|
6,892,817 |
|
|
|
7,268,104 |
|
|
|
28,902,550 |
|
|
|
29,346,617 |
|
|
|
|
|
|
|
|
|
Cost of
revenue: |
|
|
|
|
|
|
|
Systems |
|
688,595 |
|
|
|
530,679 |
|
|
|
1,411,423 |
|
|
|
1,788,658 |
|
Disposables, service and accessories |
|
810,196 |
|
|
|
898,646 |
|
|
|
3,738,914 |
|
|
|
3,928,521 |
|
Sublease |
|
246,530 |
|
|
|
- |
|
|
|
986,122 |
|
|
|
- |
|
Total cost
of revenue |
|
1,745,321 |
|
|
|
1,429,325 |
|
|
|
6,136,459 |
|
|
|
5,717,179 |
|
|
|
|
|
|
|
|
|
Gross
margin |
|
5,147,496 |
|
|
|
5,838,779 |
|
|
|
22,766,091 |
|
|
|
23,629,438 |
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
Research and development |
|
1,615,941 |
|
|
|
2,223,587 |
|
|
|
9,021,403 |
|
|
|
8,219,387 |
|
Sales and marketing |
|
3,066,414 |
|
|
|
3,054,404 |
|
|
|
12,733,389 |
|
|
|
12,965,920 |
|
General and administrative |
|
1,651,881 |
|
|
|
1,147,467 |
|
|
|
5,838,158 |
|
|
|
4,901,170 |
|
Total
operating expenses |
|
6,334,236 |
|
|
|
6,425,458 |
|
|
|
27,592,950 |
|
|
|
26,086,477 |
|
Operating
loss |
|
(1,186,740 |
) |
|
|
(586,679 |
) |
|
|
(4,826,859 |
) |
|
|
(2,457,039 |
) |
|
|
|
|
|
|
|
|
Other
income |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,590,361 |
|
Interest
income (expense) |
|
102,245 |
|
|
|
16,705 |
|
|
|
235,575 |
|
|
|
(16,566 |
) |
Net income
(loss) |
$ |
(1,084,495 |
) |
|
$ |
(569,974 |
) |
|
$ |
(4,591,284 |
) |
|
$ |
116,756 |
|
Cumulative
dividend on convertible preferred stock |
|
(358,049 |
) |
|
|
(361,447 |
) |
|
|
(1,429,400 |
) |
|
|
(1,434,000 |
) |
Net loss
attributable to common stockholders |
$ |
(1,442,544 |
) |
|
$ |
(931,421 |
) |
|
$ |
(6,020,684 |
) |
|
$ |
(1,317,244 |
) |
|
|
|
|
|
|
|
|
Net loss per
share attributed to common stockholder: |
|
|
|
|
|
|
|
Basic |
$ |
(0.02 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.03 |
) |
|
|
|
|
|
|
|
|
Diluted |
$ |
(0.02 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.03 |
) |
|
|
|
|
|
|
|
|
Weighted
average number of common shares and equivalents: |
|
|
|
|
|
|
|
Basic |
|
67,937,383 |
|
|
|
59,053,073 |
|
|
|
63,051,581 |
|
|
|
52,082,618 |
|
|
|
|
|
|
|
|
|
Diluted |
|
67,937,383 |
|
|
|
59,053,073 |
|
|
|
63,051,581 |
|
|
|
52,082,618 |
|
|
|
|
|
|
|
|
|
STEREOTAXIS,
INC. |
BALANCE
SHEETS |
|
|
|
December 31, 2019 |
|
December 31, 2018 |
|
(Unaudited) |
|
|
Assets |
|
|
|
Current
assets: |
|
|
|
Cash and cash equivalents |
$ |
30,182,115 |
|
|
$ |
10,796,072 |
|
Accounts receivable, net of allowance of $380,212 and $398,847 in
2019 and 2018, respectively |
|
5,329,577 |
|
|
|
5,021,111 |
|
Inventories, net |
|
1,847,530 |
|
|
|
1,191,666 |
|
Prepaid expenses and other current assets |
|
1,470,922 |
|
|
|
963,700 |
|
Total
current assets |
|
38,830,144 |
|
|
|
17,972,549 |
|
Property and
equipment, net |
|
250,443 |
|
|
|
343,693 |
|
Operating
lease right-of-use assets |
|
4,286,064 |
|
|
|
- |
|
Other
assets |
|
218,103 |
|
|
|
198,365 |
|
Total
assets |
$ |
43,584,754 |
|
|
$ |
18,514,607 |
|
|
|
|
|
Liabilities
and stockholders' equity |
|
|
|
Current
liabilities: |
|
|
|
Accounts payable |
$ |
2,099,097 |
|
|
$ |
1,726,360 |
|
Accrued liabilities |
|
2,721,104 |
|
|
|
2,642,481 |
|
Deferred revenue |
|
5,092,455 |
|
|
|
5,825,536 |
|
Current portion of operating lease liabilities |
|
2,248,189 |
|
|
|
- |
|
Total
current liabilities |
|
12,160,845 |
|
|
|
10,194,377 |
|
|
|
|
|
Long-term
deferred revenue |
|
554,258 |
|
|
|
407,151 |
|
Operating
lease liabilities |
|
2,089,537 |
|
|
|
- |
|
Other
liabilities |
|
255,517 |
|
|
|
641,461 |
|
Total
liabilities |
|
15,060,157 |
|
|
|
11,242,989 |
|
|
|
|
|
Series A -
Convertible preferred stock: |
|
|
|
Convertible preferred stock, Series A, par value $0.001; 23,110 and
23,900 shares outstanding at 2019 and 2018 |
|
5,758,190 |
|
|
|
5,960,475 |
|
Stockholders' equity: |
|
|
|
Convertible preferred stock, Series B, par value $0.001; 10,000,000
shares authorized, 5,610,121 and no shares outstanding at 2019 and
2018 |
|
5,610 |
|
|
|
- |
|
Common stock, par value $0.001; 300,000,000 shares authorized,
68,529,623 and 59,058,297 shares issued at 2019 and 2018,
respectively |
|
68,530 |
|
|
|
59,058 |
|
Additional paid-in capital |
|
504,211,040 |
|
|
|
478,179,574 |
|
Treasury stock, 4,015 shares at 2019 and 2018 |
|
(205,999 |
) |
|
|
(205,999 |
) |
Accumulated deficit |
|
(481,312,774 |
) |
|
|
(476,721,490 |
) |
Total
stockholders' equity |
|
22,766,407 |
|
|
|
1,311,143 |
|
Total
liabilities and stockholders' equity |
$ |
43,584,754 |
|
|
$ |
18,514,607 |
|
|
|
|
|
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