Stereotaxis (NYSE: 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,
2020.
“Stereotaxis responded to the challenges of
COVID-19 with resilience, prudence and creativity. Despite a 21%
year-over-year reduction in quarterly revenue caused by procedure
declines, we have made significant progress in commercializing the
Genesis RMN® System, advancing strategic innovations, and
protecting Stereotaxis’ financial strength,” said David Fischel,
Chairman and CEO.
“The world’s first Genesis system was installed
in July and has successfully treated patients. A second Genesis
system is currently being installed. We continue to see significant
interest in Genesis and have hosted 198 physicians and hospital
administrators from 76 hospitals since April on TeleRobotic visits.
Approximately 30% of these represent greenfield opportunities.”
“Stereotaxis is pioneering unique TeleRobotic
connectivity solutions in electrophysiology and was pleased to host
the Inaugural Symposium of the TeleRobotic Surgery Leadership
Council. This adds an important new dimension to our operational
capabilities and the value of robotics for patients, physicians and
hospitals.”
“We finalized the design of Stereotaxis’
advanced robotically-navigated magnetic ablation catheter, produced
the first batch of catheters with a newly established manufacturing
process, and are now testing, refining and validating that process.
Meaningful progress has been made on a wave of additional
innovations within electrophysiology and beyond.”
“We responded prudently to the financial impact
of COVID-19 by reducing expenses in a fashion that does not harm
organizational capabilities or slow progress. The financing
announced during the quarter leaves Stereotaxis in the strongest
financial position in its history and reinforces our commitment to
invest in impactful innovation and commercial activities.”
2020 Second Quarter Financial
ResultsRevenue for the second quarter of 2020 totaled $5.3
million, down 21% compared to $6.8 million in the prior year second
quarter. This decrease was primarily due to a 38% reduction in
procedure volumes versus the prior year. Procedure volumes improved
during the quarter with declines compared to last year of 57% in
April, 44% in May, and 13% in June. The impact of this decline on
overall revenue was cushioned by the stability of Stereotaxis’
service revenue.
Gross margin for the second quarter was $4.3
million, or 80% of revenue. Operating expenses in the quarter of
$6.2 million were 13% lower than the prior year second quarter. The
reduction in operating expenses was predominantly driven by timing
of R&D projects and pandemic-related reductions in sales and
marketing activities, partially offset by increased non-cash
general and administrative expenses. Operating loss and net loss in
the second quarter were ($1.9) million. Negative free cash flow for
the quarter was ($1.2) million.
Cash Balance and LiquidityAt
June 30, 2020, Stereotaxis had cash and cash equivalents of $44.0
million.
Forward Looking
ExpectationsStereotaxis expects to recognize revenue on
the sale of two Genesis systems in the third quarter, driving
year-over-year growth for the quarter. The continued uncertain
duration and scope of the COVID-19 pandemic makes it difficult to
confidently estimate recurring revenue or the timing of additional
system sales. Despite the uncertainty, Stereotaxis continues to
experience significant interest in Genesis and expects a resurgence
of system sales to existing and new hospital customers as the
pandemic recedes.
Cash utilization in the second half of the year
is expected to be lower than in the first half of the year, and
Stereotaxis anticipates ending 2020 with greater than $40 million
cash and no debt. Stereotaxis’ balance sheet allows it to reach
profitability without the need for additional financings.
Conference Call and
WebcastStereotaxis will host a conference call and webcast
today, August 6, 2020, at 10:00 a.m. Eastern Time. To access the
conference call, dial 1-888-394-8218 (US and Canada) or
1-786-789-4776 (International) and give the participant pass code
6170258. 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, the impact of the recent coronavirus
(COVID-19) pandemic and our response to it, 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 June 30, |
|
Six Months Ended June 30, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
2020 |
|
|
|
2019 |
|
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
Systems |
$ |
12,769 |
|
|
$ |
- |
|
|
|
$ |
12,769 |
|
|
$ |
58,051 |
|
|
Disposables, service and
accessories |
|
5,086,156 |
|
|
|
6,546,115 |
|
|
|
|
10,595,867 |
|
|
|
13,256,873 |
|
|
Sublease |
|
246,530 |
|
|
|
251,996 |
|
|
|
|
493,060 |
|
|
|
493,061 |
|
|
Total revenue |
|
5,345,455 |
|
|
|
6,798,111 |
|
|
|
|
11,101,696 |
|
|
|
13,807,985 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
Systems |
|
157,514 |
|
|
|
6,201 |
|
|
|
|
222,536 |
|
|
|
57,365 |
|
|
Disposables, service and
accessories |
|
680,937 |
|
|
|
894,760 |
|
|
|
|
1,320,800 |
|
|
|
2,009,119 |
|
|
Sublease |
|
246,530 |
|
|
|
246,531 |
|
|
|
|
493,060 |
|
|
|
493,061 |
|
|
Total cost of revenue |
|
1,084,981 |
|
|
|
1,147,492 |
|
|
|
|
2,036,396 |
|
|
|
2,559,545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin |
|
4,260,474 |
|
|
|
5,650,619 |
|
|
|
|
9,065,300 |
|
|
|
11,248,440 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
1,976,942 |
|
|
|
2,695,162 |
|
|
|
|
4,086,112 |
|
|
|
5,654,381 |
|
|
Sales and marketing |
|
2,541,749 |
|
|
|
3,236,516 |
|
|
|
|
5,457,173 |
|
|
|
6,546,342 |
|
|
General and administrative |
|
1,663,456 |
|
|
|
1,178,469 |
|
|
|
|
3,496,181 |
|
|
|
2,646,629 |
|
|
Total operating expenses |
|
6,182,147 |
|
|
|
7,110,147 |
|
|
|
|
13,039,466 |
|
|
|
14,847,352 |
|
|
Operating loss |
|
(1,921,673) |
|
|
|
(1,459,528) |
|
|
|
|
(3,974,166) |
|
|
|
(3,598,912) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
567 |
|
|
|
31,810 |
|
|
|
|
81,529 |
|
|
|
48,374 |
|
|
Net loss |
$ |
(1,921,106) |
|
|
$ |
(1,427,718) |
|
|
$ |
|
(3,892,637) |
|
|
$ |
(3,550,538) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative dividend
on convertible preferred stock |
(342,126) |
|
|
|
(357,194) |
|
|
|
|
(685,849) |
|
|
|
(710,704) |
|
|
Loss attributable to common
stockholders |
$ |
(2,263,232) |
|
|
$ |
(1,784,912) |
|
|
$ |
|
(4,578,486) |
|
|
$ |
(4,261,242) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common stockholders: |
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.03) |
|
|
$ |
(0.03) |
|
|
$ |
|
(0.06) |
|
|
$ |
(0.07) |
|
|
Diluted |
$ |
(0.03) |
|
|
$ |
(0.03) |
|
|
$ |
|
(0.06) |
|
|
$ |
(0.07) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares and equivalents: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
71,628,762 |
|
|
|
60,052,673 |
|
|
|
|
70,749,401 |
|
|
|
59,936,606 |
|
|
Diluted |
|
71,628,762 |
|
|
|
60,052,673 |
|
|
|
|
70,749,401 |
|
|
|
59,936,606 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STEREOTAXIS, INC.BALANCE
SHEETS
|
|
June 30, 2020 |
|
December 31, 2019 |
Assets |
|
(Unaudited) |
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
$ |
44,006,162 |
|
$ |
30,182,115 |
|
Accounts receivable, net of
allowance of $412,813 |
|
3,041,100 |
|
|
5,329,577 |
|
and $380,212 at 2020 and 2019, respectively |
|
|
|
|
Inventories, net |
|
4,576,078 |
|
|
1,847,530 |
|
Prepaid expenses and other
current assets |
|
1,611,504 |
|
|
1,470,922 |
|
Total current assets |
|
53,234,844 |
|
|
38,830,144 |
|
Property and equipment, net |
|
263,039 |
|
|
250,443 |
|
Operating lease right-of-use
assets |
|
3,282,783 |
|
|
4,286,064 |
|
Other assets |
|
269,542 |
|
|
218,103 |
|
Total assets |
$ |
57,050,208 |
|
$ |
43,584,754 |
|
|
|
|
|
|
Liabilities and
stockholders’ equity |
|
|
|
|
Current liabilities: |
|
|
|
|
Short-term debt |
$ |
2,158,310 |
|
$ |
- |
|
Accounts payable |
|
1,571,679 |
|
|
2,099,097 |
|
Accrued liabilities |
|
2,401,625 |
|
|
2,721,104 |
|
Deferred revenue |
|
5,456,595 |
|
|
5,092,455 |
|
Current portion of operating
lease liabilities |
|
2,265,546 |
|
|
2,248,189 |
|
Total current liabilities |
|
13,853,755 |
|
|
12,160,845 |
|
Long-term deferred revenue |
|
508,772 |
|
|
554,258 |
|
Operating lease liabilities |
|
1,069,090 |
|
|
2,089,537 |
|
Other liabilities |
|
255,517 |
|
|
255,517 |
|
Total liabilities |
|
15,687,134 |
|
|
15,060,157 |
|
|
|
|
|
|
Series A - Convertible preferred
stock: |
|
|
|
|
Convertible preferred stock, Series A, par value $0.001; 22,813
and |
|
|
|
|
23,110 shares outstanding at 2020 and 2019,
respectively |
|
5,682,141 |
|
|
5,758,190 |
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
Convertible preferred stock, Series B, par value $0.001;
10,000,000 |
|
5,610 |
|
|
5,610 |
|
shares authorized, 5,610,121 shares outstanding at 2020 and
2019 |
|
|
|
|
|
|
|
|
|
Common stock, par value $0.001; 300,000,000 shares authorized, |
|
|
|
|
73,030,824 and 68,529,623 shares issued at 2020 and 2019,
respectively |
|
73,031 |
|
|
68,530 |
|
Additional paid in capital |
|
521,013,702 |
|
|
504,211,040 |
|
Treasury stock, 4,015 shares at 2020 and 2019 |
|
(205,999) |
|
|
(205,999) |
|
Accumulated deficit |
|
(485,205,411) |
|
|
(481,312,774) |
|
Total stockholders’ equity |
|
35,680,933 |
|
|
22,766,407 |
|
Total liabilities and
stockholders’ equity |
$ |
57,050,208 |
|
$ |
43,584,754 |
|
|
|
|
|
|
|
|
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