Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential opportunities for traders [1] Premarket Gainers - PepGen Inc. (PEPG) is up 151% at $6.68 [3] - 22nd Century Group, Inc. (XXII) is up 27% at $1.93 [3] - Immuneering Corporation (IMRX) is up 23% at $11.36 [3] - uniQure N.V. (QURE) is up 10% at $52.58 [3] - Lithium Americas Corp. (LAC) is up 9% at $6.60 [3] - Jasper Therapeutics, Inc. (JSPR) is up 9% at $2.55 [3] - American Shared Hospital Services (AMS) is up 8% at $2.75 [3] - PSQ Holdings, Inc. (PSQH) is up 7% at $3.06 [3] - K Wave Media Ltd. (KWM) is up 7% at $2.48 [3] - ClearPoint Neuro, Inc. (CLPT) is up 5% at $20.48 [3] Premarket Losers - Transocean Ltd. (RIG) is down 14% at $3.11 [4] - Cyclerion Therapeutics, Inc. (CYCN) is down 12% at $2.83 [4] - CarMax, Inc. (KMX) is down 11% at $50.38 [4] - ARB IOT Group Limited (ARBB) is down 11% at $10.45 [4] - SHF Holdings, Inc. (SHFS) is down 10% at $6.49 [4] - Digital Brands Group, Inc. (DBGI) is down 10% at $6.21 [4] - Aqua Metals, Inc. (AQMS) is down 9% at $5.29 [4] - Akanda Corp. (AKAN) is down 8% at $3.96 [4] - Galecto, Inc. (GLTO) is down 8% at $3.88 [4] - Platinum Analytics Cayman Limited (PLTS) is down 7% at $11.12 [4]

Core Points - PepGen Inc. announced an underwritten public offering of common stock and pre-funded warrants, leading to a 112.4% increase in its share price to $5.65 in pre-market trading [1] - Other notable stock movements include OFA Group rising 49.6% to $1.99 due to a partnership announcement, and WORK Medical Technology Group increasing 50.4% to $0.1693 after a significant drop the previous day [5] - Lithium Americas Corp. gained 36.8% to $8.21 following reports of Trump officials seeking an equity stake in the company related to a $2.26 billion loan renegotiation [5] Gainers - Immuneering Corporation rose 30% to $12.00 after pricing a $175 million public offering and a $25 million private placement [5] - 22nd Century Group, Inc. gained 37.7% to $2.08 after securing $9.5 million from an insurance claim settlement [5] - ClearPoint Neuro, Inc. increased by 12.8% to $21.76 after a previous gain of 58% [5] Losers - SeaStar Medical Holding Corporation dipped 43.3% to $0.7035 following a recommendation to continue a pivotal trial [5] - Cemtrex, Inc. shares fell 27.7% to $0.4530 after approving a 1-for-15 reverse stock split [5] - Lunai Bioworks Inc. declined 25.3% to $0.1290 after announcing a 10-for-1 reverse stock split [5]

Company Overview - ClearPoint Neuro Inc. operates in two segments: providing medical devices for neurosurgical applications and focusing on partnerships in the biologics and drug delivery space [2] - The primary product is the ClearPoint system, which targets the insertion of deep brain stimulation electrodes, biopsy needles, and laser catheters, as well as the infusion of pharmaceuticals into the brain [2] Recent Developments - The ClearPoint Prism Neuro Laser Therapy System received FDA clearance to include 1.5T MRI guidance, expanding its market opportunity in the U.S., where 1.5T MRI systems account for approximately 60% of clinical use [3] - The company began commercialization of the ClearPoint Prism Neuro Laser Therapy System in 2022 [2] Financial Performance - For the full year 2024, revenue was reported at $31.4 million, reflecting a 31% increase over 2023 [4] - The company expects revenue for 2025 to range between $36.0 million and $41.0 million, which would mark the 11th consecutive year of annual revenue growth if achieved [4][5] Stock Performance - ClearPoint Neuro's stock has seen significant movement, trading around $5.50 in May 2024 and reaching a high of $19.22 on February 6, 2025, before pulling back [5] - As of the latest trading, the stock is up nearly 40% at $17.01 in premarket trading [1][5]

Company Performance - ClearPoint Neuro (NASDAQ: CLPT) reported solid second quarter results, with expansion in all segments [1] - Some investors may find the results disappointing due to modest system placements and ongoing losses, but this is not seen as particularly concerning [1] Investment Strategy - Narweena, an asset manager led by Richard Durant, focuses on identifying market dislocations caused by poor long-term business prospects [1] - The firm aims for excess risk-adjusted returns by targeting businesses with secular growth opportunities in markets with barriers to entry [1] - Narweena's research emphasizes company and industry fundamentals to uncover unique insights, with a high risk appetite and long-term investment horizon [1] Market Trends - An aging population with low growth and stagnating productivity is expected to create new investment opportunities, differing from past trends [1] - Many industries may face stagnation or secular decline, which could paradoxically enhance business performance due to reduced competition [1] - The economy is increasingly dominated by asset-light businesses, leading to a declining need for infrastructure investments over time [1] - A large pool of capital is pursuing a limited set of investment opportunities, resulting in rising asset prices and compressed risk premia [1]

Financial Performance - ClearPoint Neuro reported a quarterly loss of $0.21 per share, slightly worse than the Zacks Consensus Estimate of a loss of $0.20, and compared to a loss of $0.16 per share a year ago, indicating a negative earnings surprise of -5.00% [1] - The company posted revenues of $9.22 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 3%, but showing an increase from $7.86 million in the same quarter last year [2] - ClearPoint Neuro has not surpassed consensus EPS estimates over the last four quarters, and has topped consensus revenue estimates only twice during that period [2] Stock Performance - ClearPoint Neuro shares have declined approximately 31.1% since the beginning of the year, contrasting with the S&P 500's gain of 8.4% [3] - The current Zacks Rank for ClearPoint Neuro is 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.17 on revenues of $10.2 million, and for the current fiscal year, it is -$0.76 on revenues of $39.4 million [7] - The outlook for the Medical - Instruments industry, where ClearPoint Neuro operates, is currently in the bottom 41% of over 250 Zacks industries, which may impact the stock's performance [8]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $9.2 million, representing a 17% increase from $7.9 million in Q2 2024 [8][10] - Gross margin decreased to 60% in Q2 2025 from 63% in Q2 2024, primarily due to higher inventory reserves [10] - Operating expenses increased by 16% to $11.2 million in Q2 2025 from $9.7 million in Q2 2024 [10][11] - Cash and cash equivalents rose to $41.5 million as of June 30, 2025, compared to $20.1 million at the end of 2024 [11] Business Line Data and Key Metrics Changes - Biologics and Drug Delivery revenue increased by 10% to $4.7 million in Q2 2025, driven by a 12% rise in product revenue and an 8% increase in service revenue [8][9] - Neurosurgery Navigation revenue grew by 33% to $3.4 million, attributed to new product offerings and additional placements [9] - Capital Equipment and Software revenue rose by 11% to $1 million, primarily due to increased service revenue [9] Market Data and Key Metrics Changes - ClearPoint technology is now available at over 100 centers globally, with regulatory clearance in 36 countries [6][24] - The company has activated two new sites in Q2 2025 and expects to activate between 15 and 20 new sites by the end of the year [24] Company Strategy and Development Direction - The company is focused on extending its lead in cell and gene therapy through a comprehensive drug delivery ecosystem [4][5] - Plans to evolve the product portfolio to enhance hospital efficiency and throughput [5] - Aiming to expand the global installed base and generate scale for wider access to ClearPoint technology [6][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth across all business pillars, supported by a strong cash position [13][14] - The company is preparing for significant demand as new restorative therapies become available [5][14] - Management highlighted the importance of regulatory approvals and collaborations with biopharma partners for future growth [16][18] Other Important Information - The company has secured foundational funding from Oberlin Capital to support its strategic initiatives [6] - ClearPoint has submitted applications for new ICD-10 codes to assist in tracking commercial use of its technologies [18] Q&A Session Summary Question: Can you provide more details on the biologic partner opportunity and revenue contribution from Cabildy? - Management indicated that while early opportunities are significant, they are not expected to be massive revenue drivers in the near term, serving more as milestones for larger market opportunities [31][32] Question: What is the status of the ClearPoint 3.0 rollout and its impact on margins? - Management confirmed that there is currently no margin impact from ClearPoint 3.0, and the deployment has been the fastest in the company's history, with 35 sites now using the software [36][40] Question: How will MRI suite availability impact the launch of therapies? - Management discussed strategies to improve efficiency in both MRI and operating room settings to mitigate bottlenecks and enhance capacity for procedures [51][53]

[PART I – FINANCIAL INFORMATION](index=6&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) The first part details ClearPoint Neuro, Inc.'s unaudited financial statements, management's discussion, market risks, and internal controls for the period ended June 30, 2025 [Item 1. Financial Statements (unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) Unaudited Q2 2025 financial statements reflect increased total assets to $62.9 million, driven by cash and a new note payable, alongside a widened net loss of $11.9 million for the six-month period [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, the balance sheet shows a substantial increase in cash and total assets, accompanied by a significant rise in total liabilities due to a new long-term note payable Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $41,541 | $20,104 | | Total current assets | $53,991 | $33,363 | | Total assets | $62,869 | $39,189 | | **Liabilities & Equity** | | | | Total current liabilities | $7,398 | $10,353 | | Long-term note payable, net | $28,845 | $— | | Total liabilities | $43,126 | $13,800 | | Total stockholders' equity | $19,743 | $25,389 | | Total liabilities and stockholders' equity | $62,869 | $39,189 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2025, revenue increased to $9.2 million, and for the six-month period, revenue grew to $17.7 million, though net losses widened due to higher operating expenses Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Total revenue | $9,215 | $7,858 | $17,700 | $15,497 | | Gross profit | $5,556 | $4,988 | $10,688 | $9,513 | | Operating loss | $(5,680) | $(4,724) | $(11,843) | $(8,941) | | Net loss | $(5,837) | $(4,408) | $(11,863) | $(8,554) | | Net loss per share | $(0.21) | $(0.16) | $(0.42) | $(0.32) | [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity decreased to $19.7 million at June 30, 2025, primarily due to the net loss, partially offset by proceeds from a registered direct offering and share-based compensation - Total stockholders' equity declined to **$19.7 million** at June 30, 2025, from **$25.4 million** at January 1, 2025, mainly due to the net loss for the period[19](index=19&type=chunk) - During the first six months of 2025, the company issued common stock through a registered direct offering, share-based compensation, option exercises, and its employee stock purchase plan[19](index=19&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was $8.7 million for the six months ended June 30, 2025, while significant financing activities resulted in a net increase in cash of $21.6 million Cash Flow Summary (in thousands) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $(8,724) | $(6,508) | | Net cash from investing activities | $(274) | $— | | Net cash from financing activities | $30,615 | $16,213 | | **Net change in cash** | **$21,617** | **$9,705** | | Cash, end of period | $41,541 | $32,845 | - Financing activities in the first half of 2025 were driven by net proceeds of **$28.7 million** from a new note payable and **$3.3 million** from a common stock offering[23](index=23&type=chunk)[162](index=162&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the company's neurosurgery and biologics business, confirm sufficient liquidity for 12 months post-financing, and provide revenue breakdowns and details on the new $105 million note purchase agreement - The company's business is focused on minimally invasive neurosurgical platforms and providing consulting services to over **60 biologics and drug delivery customers**[28](index=28&type=chunk)[29](index=29&type=chunk) - Despite a cumulative deficit of **$203.2 million**, management has determined that existing cash of **$41.5 million** is sufficient to fund operations for at least the next twelve months, supported by recent financing[31](index=31&type=chunk)[33](index=33&type=chunk) Revenue by Service Line - Six Months Ended June 30 (in thousands) | Service Line | 2025 | 2024 | | :--- | :--- | :--- | | Biologics and drug delivery | $9,430 | $8,634 | | Neurosurgery navigation and therapy | $6,709 | $4,513 | | Capital equipment and software | $1,561 | $2,350 | | **Total revenue** | **$17,700** | **$15,497** | - In May 2025, the company entered into a note purchase agreement for up to **$105.0 million**, with an initial tranche of **$30.0 million** funded, providing net proceeds of approximately **$28.7 million**[35](index=35&type=chunk)[81](index=81&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2025 revenue growth of 17% and a 14% increase for six months, driven by neurosurgery and biologics, but notes widened net losses due to higher operating expenses, with recent financing ensuring liquidity [Overview](index=26&type=section&id=Overview) The company operates two main business lines: minimally invasive brain surgery platforms and preclinical/clinical trial support for biologics, with the latter identified as the largest growth opportunity despite a history of losses - The company's business is structured around two core areas: medical devices for neurosurgery (e.g., ClearPoint system) and services for the biologics and drug delivery space[115](index=115&type=chunk)[116](index=116&type=chunk) - The biologics and drug delivery business, with over **60 partners**, is considered the company's largest growth opportunity, contingent on partners' clinical and regulatory success[116](index=116&type=chunk)[126](index=126&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Q2 2025 revenue grew 17% to $9.2 million, driven by neurosurgery, but gross margin declined and net loss increased by 32% to $5.8 million due to higher operating expenses Q2 2025 vs Q2 2024 Performance (in thousands) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $9,215 | $7,858 | 17% | | Gross Profit | $5,556 | $4,988 | 11% | | Net Loss | $(5,837) | $(4,408) | 32% | - Q2 2025 revenue growth was led by a **33% increase** in Neurosurgery navigation and therapy revenue, attributed to new offerings like SmartFrame OR and Prism Laser Therapy[135](index=135&type=chunk) Six Months 2025 vs Six Months 2024 Performance (in thousands) | Metric | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $17,700 | $15,497 | 14% | | Gross Profit | $10,688 | $9,513 | 12% | | Net Loss | $(11,863) | $(8,554) | 39% | - The **34% increase** in G&A expenses for the first six months of 2025 was primarily due to higher bad debt expense, personnel costs, and professional service fees[151](index=151&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) The company bolstered its liquidity in May 2025 with $3.3 million from a stock offering and $28.7 million from a note agreement, bringing cash to $41.5 million, deemed sufficient for the next twelve months - The company's cash and cash equivalents increased to **$41.5 million** at June 30, 2025, which management deems sufficient to support operations for at least the next 12 months[158](index=158&type=chunk) - In May 2025, the company raised approximately **$3.3 million** net from a registered direct stock offering and **$28.7 million** net from an initial note issuance under a new purchase agreement[154](index=154&type=chunk)[155](index=155&type=chunk) - Net cash used in operating activities increased to **$8.7 million** for the first six months of 2025, up from **$6.5 million** in the same period of 2024, primarily due to a higher net loss and increased working capital needs[159](index=159&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate sensitivity on its new note payable, which has a capped variable rate, while foreign currency risk is not considered material - The company's main market risk is interest rate sensitivity from its **$30.2 million** note payable, which bears a variable interest rate[166](index=166&type=chunk)[168](index=168&type=chunk) - The interest rate on the note is capped at **9.50%**, limiting the maximum potential annual interest expense increase to approximately **$0.4 million** based on the current principal balance[168](index=168&type=chunk) - Foreign currency risk is not considered material at this time due to limited transactions in currencies other than the U.S. dollar[169](index=169&type=chunk) [Item 4. Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[171](index=171&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the quarter ended June 30, 2025[172](index=172&type=chunk) [PART II – OTHER INFORMATION](index=35&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity sales, other information, and exhibits for ClearPoint Neuro, Inc.'s Q2 2025 report [Item 1. Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) A previously disclosed lawsuit was settled in August 2025, with the settlement amount expected to be covered by insurance and not anticipated to materially impact financial statements - A lawsuit involving a patient who suffered an adverse outcome was settled in August 2025[95](index=95&type=chunk) - The settlement is expected to be paid by insurance and is not anticipated to have a material impact on the company's financial condition[95](index=95&type=chunk)[174](index=174&type=chunk) [Item 1A. Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 - No material changes have been made to the risk factors disclosed in the 2024 Form 10-K[175](index=175&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[176](index=176&type=chunk) [Item 5. Other Information](index=36&type=section&id=Item%205.%20Other%20Information) During Q2 2025, CEO Joseph M. Burnett and Director Lynnette C. Fallon adopted Rule 10b5-1 trading arrangements in accordance with the company's insider trading policy - CEO Joseph M. Burnett and Director Lynnette C. Fallon adopted new Rule 10b5-1 trading plans on June 11, 2025[182](index=182&type=chunk) [Item 6. Exhibits](index=37&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Quarterly Report, including corporate governance documents, recent financing agreements, lease agreements, and required officer certifications - The report includes exhibits for the Stock Purchase Agreement and Note Purchase Agreement, both dated May 12, 2025[184](index=184&type=chunk) - A new lease agreement dated June 16, 2025, for a facility in San Diego, California, is also filed as an exhibit[184](index=184&type=chunk)

[Q2 2025 Financial Highlights and Business Outlook](index=1&type=section&id=ClearPoint%20Neuro%20Reports%20Second%20Quarter%202025%20Results) [Key Achievements and Strategic Update](index=1&type=section&id=Second%20Quarter%20Highlights) ClearPoint Neuro reported record Q2 2025 revenue of $9.2 million, a 17% year-over-year increase, driven by growth across all business pillars, securing up to $105 million in financing to boost cash to $41.5 million for its 'Fast. Forward.' growth strategy | Metric | Q2 2025 | YoY Change | | :--- | :--- | :--- | | **Total Revenue** | $9.2 million | +17% | | **Neurosurgery Navigation & Therapy Revenue** | $3.4 million | +33% | | **Cash and Cash Equivalents** | $41.5 million | N/A | - The company entered a new strategic phase termed 'Fast. Forward.', focusing on multiple growth vectors including expansion into the operating room, laser therapy, new geographies, and supporting Biopharma partners in late-stage clinical trials[3](index=3&type=chunk) - A significant financing deal was secured with Oberland Capital Management, providing up to **$105.0 million** through a note arrangement and an additional **$3.5 million** from a stock purchase, with an initial **$30.0 million** funded at closing[4](index=4&type=chunk) [Business Outlook](index=2&type=section&id=Business%20Outlook) The company has reaffirmed its previously stated revenue guidance for the full fiscal year 2025 - ClearPoint Neuro reaffirms its full-year 2025 revenue outlook to be between **$36.0 million** and **$41.0 million**[5](index=5&type=chunk) [Detailed Financial Performance Analysis (Q2 2025)](index=2&type=section&id=Financial%20Results%20%E2%80%93%20Quarter%20Ended%20June%2030%2C%202025) [Revenue Analysis](index=2&type=section&id=Revenue%20Analysis) Total revenue for Q2 2025 increased by 17% year-over-year to $9.2 million, with Neurosurgery Navigation and Therapy revenue showing the strongest performance at 33% growth, followed by Capital Equipment and Software at 11% and Biologics and Drug Delivery at 10% [Biologics and Drug Delivery Revenue](index=2&type=section&id=Biologics%20and%20drug%20delivery%20revenue) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $4.7 million | $4.3 million | +10% | - The increase was driven by a **$0.2 million** rise in product revenue from higher demand as partners progress in trials, and a **$0.2 million** increase in service revenue[7](index=7&type=chunk) [Neurosurgery Navigation and Therapy Revenue](index=2&type=section&id=Neurosurgery%20navigation%20and%20therapy%20revenue) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $3.4 million | $2.6 million | +33% | - Growth was fueled by higher sales from new offerings, including SmartFrame OR, Prism Laser Therapy, and the new 3.0 operating room navigation software[8](index=8&type=chunk) [Capital Equipment and Software Revenue](index=2&type=section&id=Capital%20equipment%20and%20software%20revenue) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $1.0 million | $0.9 million | +11% | - The increase in this segment was primarily due to a rise in service revenue[9](index=9&type=chunk) [Profitability and Expenses](index=2&type=section&id=Profitability%20and%20Expenses) Gross margin for Q2 2025 declined to 60% from 63% in the prior-year period, primarily due to higher inventory reserves, while operating expenses increased by 16% to $11.2 million, driven by higher costs in R&D and personnel as the company invests in expansion - Gross margin decreased to **60%** for Q2 2025, compared to **63%** in Q2 2024, mainly due to higher excess and obsolete inventory reserves[10](index=10&type=chunk) - Operating expenses rose **16%** to **$11.2 million**, driven by increased product development costs, higher allowance for credit losses, and increased headcount in R&D and clinical organizations[11](index=11&type=chunk) [Liquidity and Capital Resources](index=2&type=section&id=Liquidity%20and%20Capital%20Resources) The company's cash position strengthened significantly, with cash and cash equivalents reaching $41.5 million at the end of Q2 2025, more than double the $20.1 million balance at year-end 2024, primarily from $32.0 million in net proceeds from a note payable and stock offering - Cash and cash equivalents totaled **$41.5 million** as of June 30, 2025, a substantial increase from **$20.1 million** at December 31, 2024[12](index=12&type=chunk) - The increase in cash was primarily due to net proceeds of **$32.0 million** from a note payable and stock offering, partially offset by **$8.7 million** used in operating activities[12](index=12&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) For the second quarter of 2025, ClearPoint Neuro reported total revenue of $9.2 million, a gross profit of $5.6 million, an operating loss of $5.7 million, and a net loss of $5.8 million or $(0.21) per share, compared to a net loss of $4.4 million or $(0.16) per share in the prior year | (in thousands, except per share data) | For the Three Months Ended June 30, 2025 | For the Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Total revenue** | $9,215 | $7,858 | | **Gross profit** | $5,556 | $4,988 | | **Operating loss** | $(5,680) | $(4,724) | | **Net loss** | $(5,837) | $(4,408) | | **Net loss per share (Basic and diluted)** | $(0.21) | $(0.16) | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, the company's total assets significantly increased to $62.9 million from $39.2 million at year-end 2024, driven by a rise in cash to $41.5 million, while total liabilities also increased to $43.1 million due to a new long-term note payable of $28.8 million | (in thousands) | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $41,541 | $20,104 | | **Total current assets** | $53,991 | $33,363 | | **Total assets** | $62,869 | $39,189 | | **Long-term note payable, net** | $28,845 | $— | | **Total liabilities** | $43,126 | $13,800 | | **Total stockholders' equity** | $19,743 | $25,389 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the first six months of 2025, the company used $8.7 million in cash for operating activities, while financing activities provided $30.6 million, primarily from a note payable and common stock offerings, resulting in a net cash increase of $21.6 million | (in thousands) | For the Six Months Ended June 30, 2025 | For the Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash flows from operating activities** | $(8,724) | $(6,508) | | **Net cash flows from investing activities** | $(274) | $— | | **Net cash flows from financing activities** | $30,615 | $16,213 | | **Net change in cash** | $21,617 | $9,705 | | **Cash, cash equivalents and restricted cash, end of period** | $41,721 | $32,845 | [Other Information](index=2&type=section&id=Other%20Information) [Teleconference Information](index=2&type=section&id=Teleconference%20Information) The company will host a teleconference and webcast for investors and analysts to review its Q2 2025 financial results on Tuesday, August 12, 2025, at 4:30 p.m. Eastern time, with access details for the live event and a replay provided - An investor call is scheduled for August 12, 2025, at 4:30 p.m. ET to discuss the quarterly results, with a replay available until September 11, 2025[13](index=13&type=chunk)[14](index=14&type=chunk) [About ClearPoint Neuro](index=3&type=section&id=About%20ClearPoint%20Neuro) ClearPoint Neuro focuses on enabling precise navigation to the brain and spine for device, cell, and gene therapies, offering clinical products like its FDA-cleared ClearPoint Neuro Navigation System and preclinical development services to a global customer base - ClearPoint Neuro is a device, cell, and gene therapy-enabling company that provides precise navigation to the brain and spine for both clinical procedures and preclinical development[16](index=16&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section provides a standard safe harbor statement, cautioning that statements regarding the company's future plans, growth, and financial performance are forward-looking and subject to significant risks and uncertainties, including macroeconomic conditions, regulatory changes, market acceptance of new products, and the success of its biopharma partners - The press release contains forward-looking statements concerning the company's plans, growth, and future performance, which are subject to inherent business risks and uncertainties[17](index=17&type=chunk) - Key risks identified include macroeconomic conditions, regulatory uncertainty, market acceptance for new products, and reliance on the commercial success of its biologics and drug delivery partners[17](index=17&type=chunk)

Company Overview - ClearPoint Neuro enables cell, gene, and device therapies by offering precise navigation to the brain and spine[6] - The company's platform includes clinical products for neurosurgeons and drug development services for BioPharma partners[6] - ClearPoint Neuro has built a complete drug delivery ecosystem over 15+ years[8] - The company has 100+ active global centers and 60+ partners across 20+ indications[8] Market Opportunity - The company estimates its current portfolio provides access to a ≈$500 million market opportunity[8] - ClearPoint Neuro sees a $10 billion potential diversified market[9] - Over 30 million people in the U S are estimated to suffer from severe and debilitating neurological disorders[10] - Neurological diseases cost Americans nearly $800 billion annually[10] Financial Performance - The company's 2024 revenue was $31.4 million[52] - As of June 30, 2025, the company had $41.5 million in cash and cash equivalents[52] - The company's gross margin is 60%[52] - The company's 2024 operational cash burn was ($9.0 million)[52]

Group 1 - ClearPoint Neuro's stock has faced pressure due to soft first-quarter results and additional capital raising, but strong consumables growth indicates underlying business progress [1] - System placements are highlighted as a positive aspect of ClearPoint's business performance [1] - Narweena, an asset manager, focuses on identifying market dislocations and believes in achieving excess risk-adjusted returns through secular growth opportunities in markets with barriers to entry [1] Group 2 - Narweena's research emphasizes company and industry fundamentals to uncover unique insights, with a high risk appetite and long-term investment horizon [1] - The aging population, low population growth, and stagnating productivity growth are expected to create new investment opportunities, differing from past trends [1] - Many industries may experience stagnation or secular decline, potentially improving business performance due to decreased competition [1] Group 3 - The economy is increasingly dominated by asset-light businesses, leading to a declining need for infrastructure investments over time [1] - A large pool of capital is pursuing a limited set of investment opportunities, resulting in rising asset prices and compressed risk premia [1] - Richard Durant, the leader of Narweena, has a strong educational background in engineering, finance, and an MBA, along with passing the CFA exams [1]