Stereotaxis Reports 2021 Third Quarter Financial Results

Rhea-AI Summary

Stereotaxis reported a 5% increase in revenue for Q3 2021, totaling $9.1 million, driven by renewed adoption of robotic systems. Operating expenses rose to $9.4 million, reflecting increased R&D and hiring. Both operating and net losses were $4.6 million, worsening from $1.6 million the previous year. The company maintains a cash balance of $42.8 million, down from $44.2 million at year-end 2020. Strategic collaborations, especially in China, and upcoming innovations are positioned to enhance long-term growth.

Positive

• 5% revenue increase to $9.1 million compared to Q3 2020.
• Robotic system revenue expected to double next year.
• Strategic collaboration with MicroPort EP in China.
• Proprietary catheter overcoming supply chain issues.
• Two Genesis system orders received since last call.

Negative

• Operating loss increased to $4.6 million from $1.6 million year-over-year.
• Adjusted operating loss of $2.0 million, up from $0.8 million year-over-year.
• Negative free cash flow of $1.5 million compared to $0.2 million last year.

ST. 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.

“We 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.”

“Renewed 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.”

“China 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.”

“Our 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.”

“This 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.”

2021 Third Quarter Financial Results
Revenue 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.

Gross 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.

Operating 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.

Cash Balance and Liquidity
At 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.

Forward Looking Expectations
Stereotaxis 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.

Conference Call and Webcast
Stereotaxis 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 at www.Stereotaxis.com.

About Stereotaxis
Stereotaxis (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 www.Stereotaxis.com or follow us on Facebook, Twitter, LinkedIn, Instagram, and YouTube.

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. 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.

Company Contacts:                                                        
David L. Fischel
Chairman and Chief Executive Officer

Kimberly R. Peery                                                        
Chief Financial Officer

314-678-6100
Investors@Stereotaxis.com

STEREOTAXIS, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
	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

STEREOTAXIS, INC.
BALANCE SHEETS
	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

FAQ

What are Stereotaxis' Q3 2021 financial results?

Stereotaxis reported Q3 2021 revenue of $9.1 million, a 5% increase year-over-year.

What is the expected growth for Stereotaxis' robotic system revenue?

The company expects to double robotic system revenue next year.

What was the operating loss for Stereotaxis in Q3 2021?

The operating loss for Q3 2021 was $4.6 million.

How much cash did Stereotaxis have as of September 30, 2021?

Stereotaxis had a cash balance of $42.8 million as of September 30, 2021.

What strategic collaboration did Stereotaxis announce?

Stereotaxis announced a strategic collaboration with MicroPort EP in China.