Core Insights - Stereotaxis (STXS) announced the successful performance of the first procedures in the Netherlands using its Genesis Robotic Magnetic Navigation (RMN) System at Erasmus University Medical Center in Rotterdam [1][9] Company Developments - The adoption of Genesis at a leading European cardiac center indicates increasing clinical confidence in robotic solutions for complex arrhythmias, addressing the needs of tens of millions suffering from these conditions globally [2][10] - The collaboration with Erasmus MC enhances Stereotaxis' credibility and supports the broader adoption of its robotic innovations, which is crucial for expanding access to advanced cardiac treatments [2][10] - The Genesis RMN System is recognized for its speed, precision, and safety, particularly when used with the MAGiC catheter, which improves care for complex arrhythmia patients [8][9] Market Performance - Following the announcement, STXS shares increased by 2.5% at the market close, with a year-to-date gain of 26.3%, outperforming the industry which declined by 11.4% [3] - The current market capitalization of STXS stands at $255.9 million [6] Long-term Outlook - The successful introduction of Genesis at a prominent cardiac center is expected to encourage wider adoption among hospitals, leading to increased recurring revenue from system usage and related products [4] - The Genesis RMN System is designed to be smaller and lighter, enhancing patient accessibility and optimizing workspace in electrophysiology labs, which may reduce infrastructure burdens [11][12] - Regulatory approvals in multiple regions, including the FDA in the U.S. and CE-mark in Europe, support the growing clinical use of Genesis, which is essential for generating data and physician experience to drive further adoption [12]

Core Insights - Stereotaxis has successfully launched its Genesis Robotic Magnetic Navigation System at Erasmus University Medical Center in Rotterdam, marking a significant advancement in surgical robotics for minimally invasive endovascular interventions [1][2]. Company Overview - Stereotaxis is a pioneer in surgical robotics, focusing on minimally invasive endovascular interventions, with a mission to develop robotic systems and solutions that enhance patient care and operational efficiency in interventional laboratories [3]. Technological Advancements - The Genesis System represents the latest in Robotic Magnetic Navigation technology, which enhances precision and safety in cardiac ablation procedures for treating arrhythmias [2]. - The combination of the Genesis system and the MAGiC Catheter has shown synergistic improvements in robotic magnetic navigation, which is crucial for providing optimal care to arrhythmia patients, including those with complex conditions [2]. Clinical Impact - Erasmus MC has performed over 4,500 procedures using Stereotaxis technology, demonstrating the effectiveness and reliability of robotic magnetic navigation in complex arrhythmia treatments [2]. - Arrhythmias affect tens of millions globally, and untreated cases can lead to severe health risks such as stroke and heart failure, highlighting the importance of advanced treatment options like those offered by Stereotaxis [2].

Core Insights - Stereotaxis, Inc. (NYSE: STXS) has experienced a strong performance in the stock market, with gains exceeding 40% over the past six months [1] - The company faces challenges with a volatile revenue stream, particularly in its 'Systems' segment [1] Company Performance - The stock has had a good year overall, marked by double-digit gains [1] - The recent performance highlights significant investor interest and market confidence in Stereotaxis [1] Revenue Challenges - The revenue stream from the 'Systems' segment has been described as disturbingly volatile, indicating potential risks in this area [1]

Industry Overview - The robotics market, encompassing autonomous vehicles, industrial vision, warehouse automation, and surgical systems, is projected to grow to $260 billion by 2030, driven by advancements in artificial intelligence (AI) [2] - AI is expected to transition from software to real-world applications, leading to rapid growth in key technologies such as collaborative robotics, lidar sensors, and machine vision [2][3] - The current market dynamics indicate a shift in leadership beyond major tech companies, with increased investor interest in alternative growth stories, particularly in robotics [3] Investment Opportunities - There are numerous promising robotics companies trading under $20 per share, presenting affordable entry points for investors [4] - The list of 15 robotics stocks includes companies that combine high innovation levels with attractive pricing, allowing early investors to tap into the next wave of automation [4] Methodology - The selection of the 15 best robotics stocks was based on a review of various stocks and hedge fund sentiment, utilizing data from Insider Monkey's database tracking nearly 1,000 elite hedge funds [6] - The stocks are arranged in ascending order based on the number of hedge funds holding each company [6] Company Highlights - **Nauticus Robotics, Inc. (NASDAQ:KITT)**: Recently tested its Aquanaut Mark 2 underwater vehicle at a record depth of 2,300 meters, demonstrating operational capabilities that could reduce subsea costs for oil and gas clients by 30-40% [9][10][11] - **Arbe Robotics Ltd. (NASDAQ:ARBE)**: Secured an order for its radar system to be used in a recreational boat collision avoidance system, showcasing the versatility of its radar technology beyond automotive applications [12][13][14] - **Stereotaxis, Inc. (NYSE:STXS)**: Announced the successful completion of the first robotic high-density mapping procedure in the U.S. with its MAGiC Sweep™ catheter, enhancing arrhythmia diagnosis and treatment [15][16][17]

Core Insights - Stereotaxis has successfully completed the world's first procedures using MAGiC Sweep™, a robotically-navigated high-density electrophysiology mapping catheter, marking a significant advancement in surgical robotics for minimally invasive endovascular interventions [1][2]. Company Overview - Stereotaxis is a pioneer and global leader in innovative surgical robotics, focusing on minimally invasive endovascular interventions. The company aims to enhance patient care through robotic precision and safety, while also expanding access to such therapies [3]. - The technology developed by Stereotaxis has been utilized to treat over 150,000 patients globally, including regions such as the United States, Europe, and Asia [3]. Product Launch and Regulatory Status - Following FDA clearance, Stereotaxis has initiated the commercial launch of MAGiC Sweep in the United States, with plans for regulatory clearance in Europe [2].

Core Insights - Stereotaxis will showcase its surgical robotics technology at the HRX digital health conference from September 4-6, 2025, in Atlanta, Georgia, focusing on advancements in cardiovascular medicine [1] - CEO David Fischel will participate in a roundtable discussion and a panel session on innovative ablation techniques that leverage robotics and AI to enhance patient outcomes [2][3] Company Overview - Stereotaxis is a leader in surgical robotics for minimally invasive endovascular interventions, aiming to improve patient care through robotic precision and safety [4] - The company's technology has been utilized to treat over 150,000 patients globally, indicating a significant impact in the field of interventional cardiology [4]

```markdown Part I Financial Information [Item 1. Consolidated Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20%28unaudited%29) This section presents Stereotaxis, Inc.'s unaudited consolidated financial statements for the quarter ended June 30, 2025, including the balance sheets, statements of operations, statements of convertible preferred stock and stockholders' equity, and statements of cash flows [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) This section highlights key changes in assets, liabilities, and stockholders' equity, including a significant decrease in total equity Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Total Current Assets | $21,904 | $26,439 | | Total Assets | $41,173 | $46,724 | | Total Current Liabilities | $20,748 | $21,602 | | Total Liabilities | $34,421 | $35,292 | | Total Stockholders' Equity | $1,456 | $6,080 | - **Cash and cash equivalents decreased** from **$12,217 thousand** at **December 31, 2024**, to **$6,967 thousand** at **June 30, 2025**[12](index=12&type=chunk) - **Total stockholders' equity significantly decreased** from **$6,080 thousand** at **December 31, 2024**, to **$1,456 thousand** at **June 30, 2025**[12](index=12&type=chunk) [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) This section presents the company's revenue, cost of revenue, gross margin, and net loss for the reported periods, showing improved operational efficiency Consolidated Statements of Operations Highlights (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total Revenue | $8,798 | $4,502 | $16,270 | $11,382 | | Total Cost of Revenue | $4,219 | $1,189 | $7,627 | $4,103 | | Gross Margin | $4,579 | $3,313 | $8,643 | $7,279 | | Operating Loss | $(3,977) | $(6,021) | $(9,906) | $(10,767) | | Net Loss | $(3,826) | $(5,833) | $(9,649) | $(10,340) | | Net Loss per Share (Basic & Diluted) | $(0.05) | $(0.07) | $(0.12) | $(0.13) | - **Total revenue increased** significantly by **95%** for the three months ended **June 30, 2025**, compared to the same period in **2024**, and by **43%** for the six months ended **June 30, 2025**, driven by **increased system sales** and post-acquisition **disposable device sales**[15](index=15&type=chunk) - **Net loss decreased** for both the three-month and six-month periods ended **June 30, 2025**, compared to the prior year, indicating improved operational efficiency despite **increased cost of revenue**[15](index=15&type=chunk) [Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Convertible%20Preferred%20Stock%20and%20Stockholders%27%20Equity) This section details changes in the company's capital structure, including convertible preferred stock, common stock, and accumulated deficit Changes in Stockholders' Equity (in thousands) | Metric | Balance at Dec 31, 2024 | Net Loss (6M 2025) | Stock-based Compensation (6M 2025) | Preferred Stock Conversion (6M 2025) | Balance at June 30, 2025 | | :-------------------------- | :---------------------- | :----------------- | :----------------------------------- | :----------------------------------- | :----------------------- | | Convertible Preferred Stock | $5,352 | - | - | $(56) | $5,296 | | Common Stock | $85 | - | - | $1 | $86 | | Additional Paid-In Capital | $567,926 | - | $4,902 | $56 | $572,950 | | Accumulated Deficit | $(561,725) | $(9,649) | - | - | $(571,374) | | Total Stockholders' Equity | $6,080 | $(9,649) | $4,902 | $57 | $1,456 | - The **accumulated deficit increased** to **$(571.4) million** as of **June 30, 2025**, from **$(561.7) million** at **December 31, 2024**, primarily due to the **net loss** incurred during the period[24](index=24&type=chunk) - **Stock-based compensation contributed $4,902 thousand** to additional paid-in capital for the six months ended **June 30, 2025**[24](index=24&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section outlines the company's cash flows from operating, investing, and financing activities, and the resulting net change in cash Consolidated Statements of Cash Flows Highlights (in thousands) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :----------------------------- | :----------------------------- | | Net Cash Used in Operating Activities | $(5,512) | $(5,434) | | Net Cash Used in Investing Activities | $(23) | $(22) | | Net Cash Provided by Financing Activities | $66 | $58 | | Net Decrease in Cash, Cash Equivalents, and Restricted Cash | $(5,469) | $(5,398) | | Cash, Cash Equivalents, and Restricted Cash at End of Period | $6,967 | $15,164 | - The company experienced a **net decrease** in cash, cash equivalents, and restricted cash of **$5,469 thousand** for the six months ended **June 30, 2025**, leading to an ending balance of **$6,967 thousand**[26](index=26&type=chunk) - **Operating activities** continued to be a net user of cash, with **$5,512 thousand** used in the first half of **2025**, a slight **increase** from **$5,434 thousand** in the prior year[26](index=26&type=chunk) [Notes to Financial Statements](index=9&type=section&id=Notes%20to%20Financial%20Statements) This section includes detailed notes explaining the company's business, significant accounting policies, recent acquisition of APT, and other financial instrument details - The company's interim financial statements are prepared in accordance with U.S. GAAP for interim information and Form 10-Q instructions, including normal recurring adjustments[45](index=45&type=chunk) - **Key risks and uncertainties** include the fluid **global tariff environment** (e.g., potential U.S.-China tariff expiration, proposed universal baseline tariff), ongoing supply chain disruptions, inflationary pressures, elevated interest rates, and geopolitical conflicts, which could impact **cost structure**, **gross margins**, and product launches[47](index=47&type=chunk)[48](index=48&type=chunk) - **Revenue is recognized** in accordance with ASC 606, distinguishing between initial capital sales of systems and recurring revenue from disposables, royalties, software updates, and service contracts, with allocation based on standalone selling prices[66](index=66&type=chunk)[67](index=67&type=chunk)[69](index=69&type=chunk)[70](index=70&type=chunk) [1. Description of Business](index=9&type=section&id=1.%20Description%20of%20Business) Stereotaxis designs, manufactures, and markets robotic systems, instruments, and information systems for interventional laboratories, primarily focusing on cardiac ablation procedures using its proprietary Robotic Magnetic Navigation technology - **Stereotaxis' core business** involves Robotic Magnetic Navigation (RMN) systems for endovascular interventions, with a primary clinical focus on cardiac ablation procedures[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) - The company **acquired Access Point Technologies EP, Inc. (APT)** on **July 31, 2024**, to integrate in-house catheter development and manufacturing expertise, supporting innovation in interventional devices[41](index=41&type=chunk)[42](index=42&type=chunk) - **Key product developments and regulatory approvals** include CE Mark for GenesisX RMN System (Q3 2024), NMPA approval for Genesis RMN in China (Nov 2024), CE Mark for Stereotaxis MAGiC catheter in Europe (Q1 2025), and FDA 510(k) clearance for MAGiC Sweep™ catheter in the U.S. (July 2025)[43](index=43&type=chunk)[44](index=44&type=chunk) [2. Summary of Significant Accounting Policies](index=11&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) This section outlines the company's significant accounting policies, including the basis of presentation for unaudited interim financial statements, and details on risks and uncertainties such as global tariffs, supply chain disruptions, and macroeconomic factors [Risks and Uncertainties](index=12&type=section&id=Risks%20and%20Uncertainties) The global tariff environment, macroeconomic and geopolitical factors, and hospital customer pressures pose significant risks to the company's operations and liquidity - The **global tariff environment**, particularly U.S.-China tariffs and proposed universal baseline tariffs, could materially affect the company's **cost structure**, **gross margins**, and product launch timing[47](index=47&type=chunk) - **Macroeconomic and geopolitical factors**, including supply chain challenges, inflation, high interest rates, and conflicts (Russia-Ukraine, Middle East), continue to pose risks to operations and liquidity[48](index=48&type=chunk) - **Hospital customers face staffing and cost pressures**, and liquidity concerns from elevated interest rates, potentially causing delays or cancellations of purchase orders and reduced demand for disposable products[49](index=49&type=chunk) - The company has incurred **cumulative net losses** of approximately **$571.4 million** as of **June 30, 2025**, and expects further losses in **2025** due to continued product development, commercialization, R&D, and sales/marketing initiatives[53](index=53&type=chunk) [Cash and Cash Equivalents](index=14&type=section&id=Cash%20and%20Cash%20Equivalents) This section defines cash and cash equivalents and their composition as of the reporting dates - **Cash and cash equivalents** include cash on hand, money market instruments, and highly liquid investments with original maturities of three months or less[55](index=55&type=chunk) [Restricted Cash](index=14&type=section&id=Restricted%20Cash) This section reports the company's restricted cash balance, which was zero as of June 30, 2025 - The company had **no restricted cash** as of **June 30, 2025**, **decreased** from **$0.2 million** at **December 31, 2024**[56](index=56&type=chunk) [Investments](index=14&type=section&id=Investments) This section confirms the absence of short-term investments for the reported periods - As of **June 30, 2025**, and **December 31, 2024**, the Company had no short-term investments[57](index=57&type=chunk) [Fair Value Measurements](index=14&type=section&id=Fair%20Value%20Measurements) This section describes the fair value classification of financial assets and liabilities, including Level 2 money market funds and Level 3 contingent consideration - Financial assets classified as Level 2 (money market funds) and financial liabilities classified as Level 3 (**contingent consideration** from APT acquisition) are measured at fair value[63](index=63&type=chunk)[64](index=64&type=chunk) [Accounts Receivable, Contract Assets, and Allowance for Credit Losses](index=16&type=section&id=Accounts%20Receivable%2C%20Contract%20Assets%2C%20and%20Allowance%20for%20Credit%20Losses) This section explains the accounting policy for accounts receivable and contract assets, net of an allowance for expected credit losses - Accounts receivable and contract assets are reported net of an allowance for expected credit losses, assessed based on historical and expected net collections[65](index=65&type=chunk) [Revenue and Costs of Revenue](index=16&type=section&id=Revenue%20and%20Costs%20of%20Revenue) This section details the company's revenue recognition policies and sources, including systems, disposables, and recurring services - **Revenue is generated** from initial capital sales of systems, recurring sales of disposable devices, royalties, and other recurring revenue (software updates, service contracts)[67](index=67&type=chunk) Revenue Breakdown (in thousands) | Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Systems | $3,038 | $240 | $5,002 | $2,852 | | Disposables, Service and Accessories | $5,760 | $4,262 | $11,268 | $8,530 | | Total Revenue | $8,798 | $4,502 | $16,270 | $11,382 | - **System revenue** represented **31%** and **25%** of **total revenue** for the six months ended **June 30, 2025**, and **2024**, respectively, while disposables, service, and accessories accounted for **34%** and **28%** respectively[72](index=72&type=chunk)[73](index=73&type=chunk) - **Other recurring revenue**, including product maintenance and software enhancements, represented **35%** and **47%** of revenue for the six months ended **June 30, 2025**, and **2024**, respectively[75](index=75&type=chunk) [Assets Recognized from the Costs to Obtain a Contract with a Customer](index=19&type=section&id=Assets%20Recognized%20from%20the%20Costs%20to%20Obtain%20a%20Contract%20with%20a%20Customer) This section outlines the capitalization of sales incentive programs as contract acquisition costs - **Sales incentive programs** for the sales team are capitalized as **contract acquisition costs**, totaling approximately **$0.1 million** as of **June 30, 2025**, and **December 31, 2024**[79](index=79&type=chunk) [Cost of Contracts](index=19&type=section&id=Cost%20of%20Contracts) This section describes the components of costs of systems and disposable revenue recognized at the time of sale - **Costs of systems revenue** include direct product costs, installation labor, warranty, and initial training, recognized at the time of sale[80](index=80&type=chunk) [Goodwill and Intangible Assets](index=19&type=section&id=Goodwill%20and%20Intangible%20Assets) This section explains the accounting treatment for goodwill and definite-lived intangible assets, including impairment testing and amortization - **Goodwill is not amortized** but evaluated for impairment annually; **definite-lived intangible assets are amortized** on a straight-line basis[81](index=81&type=chunk) [Contingent Liabilities- Earnout Consideration](index=19&type=section&id=Contingent%20Liabilities-%20Earnout%20Consideration) This section details the accounting for contingent consideration from the APT acquisition as a Level 3 financial liability - **Contingent consideration** from the APT acquisition is recognized as a Level 3 financial liability, remeasured to fair value at each reporting date, with changes recognized in General and Administrative expenses[82](index=82&type=chunk) [Leasing Arrangements](index=19&type=section&id=Leasing%20Arrangements) This section describes the recognition of operating lease agreements on the balance sheet as right-of-use assets and lease liabilities - **Operating lease agreements are recognized** on the balance sheet as right-of-use (ROU) assets and corresponding lease liabilities, with the discount rate based on the incremental borrowing rate[84](index=84&type=chunk)[86](index=86&type=chunk) [Stock-Based Compensation](index=20&type=section&id=Stock-Based%20Compensation) This section outlines the valuation and recognition methods for time-based and market-based stock awards - **Stock-based compensation** for time-based awards is valued using the Black-Scholes model and recognized over the vesting period (generally four years)[88](index=88&type=chunk) - **Market-based awards** are valued using Monte Carlo simulations, with expense recognized over the minimum service period regardless of market target achievement[89](index=89&type=chunk) [Net Loss per Common Share](index=20&type=section&id=Net%20Loss%20per%20Common%20Share) This section presents the basic and diluted net loss per common share and the factors influencing these metrics Net Loss per Common Share (in thousands, except per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Loss | $(3,826) | $(5,833) | $(9,649) | $(10,340) | | Net Loss Attributable to Common Stockholders | $(4,144) | $(6,158) | $(10,281) | $(10,996) | | Basic EPS | $(0.05) | $(0.07) | $(0.12) | $(0.13) | | Diluted EPS | $(0.05) | $(0.07) | $(0.12) | $(0.13) | - **Basic and diluted net loss per common share improved** to **$(0.05)** for the three months and **$(0.12)** for the six months ended **June 30, 2025**, compared to **$(0.07)** and **$(0.13)** respectively in the prior year[92](index=92&type=chunk) [Recently Issued Accounting Pronouncements](index=20&type=section&id=Recently%20Issued%20Accounting%20Pronouncements) This section discusses recently issued accounting standards and their expected impact on the company's financial statements - **ASU 2023-09 (Income Taxes)** will be effective for the year ending **December 31, 2025**, requiring enhanced income tax disclosures, but is not expected to have a significant impact[95](index=95&type=chunk) - **ASU 2024-01 (Stock Compensation)** clarifies the scope application of profits interest and similar awards, effective for public business entities after **December 15, 2024**, with no material impact expected[96](index=96&type=chunk) [3. Acquisitions](index=22&type=section&id=3.%20Acquisitions) On July 31, 2024, Stereotaxis acquired Access Point Technologies EP, Inc. (APT) for an upfront stock payment and contingent payments based on regulatory and commercial milestones - The **acquisition of APT** on **July 31, 2024**, involved an upfront payment of **1,486,620 common shares** (**$3.0 million value**) and **contingent payments** up to **$24.0 million** based on milestones through **September 30, 2029**[99](index=99&type=chunk) APT Acquisition Fair Value Summary (in thousands) as of July 31, 2024 | Category | Amount | | :----------------------- | :----- | | Total Assets Acquired | $14,738 | | Total Liabilities Assumed | $1,772 | | Net Assets Acquired | $12,966 | | Goodwill | $3,764 | | Intangible Assets | $7,740 | - **APT contributed $2,562 thousand** in revenue and a **net loss** of **$1,395 thousand** to Stereotaxis' consolidated statement of earnings for the six months ended **June 30, 2025**[102](index=102&type=chunk)[103](index=103&type=chunk) - The **net loss** for the six months ended **June 30, 2025**, included a **$458 thousand expense** due to the revaluation of the **contingent consideration** related to the APT acquisition[102](index=102&type=chunk) [4. Financial Instruments](index=23&type=section&id=4.%20Financial%20Instruments) This section details the company's financial instruments, primarily cash and cash equivalents, and their fair value classifications Cash and Cash Equivalents by Fair Value Level (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :------------------- | :------------ | :---------------- | | Cash | $1,656 | $969 | | Level 2 Money Market Funds | $5,311 | $11,248 | | Total | $6,967 | $12,217 | - **Interest income from cash and investments was $0.3 million** for the six months ended **June 30, 2025**[105](index=105&type=chunk) - The **contingent consideration** from the APT acquisition is a Level 3 financial liability carried at fair value[106](index=106&type=chunk) [5. Inventories](index=24&type=section&id=5.%20Inventories) The company's inventories consist of raw materials, work in process, and finished goods, with a reserve for excess and obsolescence Inventories (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Raw Materials | $6,494 | $5,223 | | Work in Process | $1,508 | $1,103 | | Finished Goods | $4,263 | $4,382 | | Reserve for Excess and Obsolescence | $(2,657) | $(2,377) | | Total Inventory | $9,608 | $8,331 | - The **reserve for excess and obsolescence increased** to approximately **$2.7 million**, including slow-moving acquired inventory and Niobe Systems[108](index=108&type=chunk) [6. Prepaid Expenses and Other Assets](index=24&type=section&id=6.%20Prepaid%20Expenses%20and%20Other%20Assets) Prepaid expenses and other assets decreased from $1,955 thousand at December 31, 2024, to $1,054 thousand at June 30, 2025, primarily due to a reduction in deferred cost of revenue Prepaid Expenses and Other Assets (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Prepaid Expenses | $336 | $405 | | Prepaid Commissions | $88 | $78 | | Deposits | $611 | $411 | | Deferred Cost of Revenue | $- | $1,025 | | Other Assets | $19 | $36 | | Total | $1,054 | $1,955 | - **Deferred cost of revenue**, representing costs for delivered but unrecognized system revenue, **decreased** from **$1,025 thousand** to zero[109](index=109&type=chunk) [7. Property and Equipment](index=24&type=section&id=7.%20Property%20and%20Equipment) Net property and equipment decreased slightly from $3,573 thousand at December 31, 2024, to $3,284 thousand at June 30, 2025, primarily due to accumulated depreciation Property and Equipment (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Equipment | $5,121 | $5,098 | | Leasehold Improvements | $2,916 | $2,916 | | Less: Accumulated Depreciation | $(4,753) | $(4,441) | | Net Property and Equipment | $3,284 | $3,573 | [8. Goodwill and Intangible Assets](index=25&type=section&id=8.%20Goodwill%20and%20Intangible%20Assets) Goodwill remained constant at $3,764 thousand, while net intangible assets decreased from $7,358 thousand at December 31, 2024, to $6,899 thousand at June 30, 2025, due to accumulated amortization Goodwill and Intangible Assets (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Goodwill | $3,764 | $3,764 | | Total Intangibles | $7,740 | $7,740 | | Less: Accumulated Amortization | $(841) | $(382) | | Net Intangibles | $6,899 | $7,358 | [9. Leases](index=25&type=section&id=9.%20Leases) The company leases facilities under operating leases, including the Globe Lease (St. Louis) and the Talulla Lease (Rogers, Minnesota, acquired with APT) - The **company has two primary operating leases**: the Globe Lease for its principal executive and manufacturing facilities (10-year term from **2021**) and the Talulla Lease for APT's facilities (4-year term from **August 2024**)[112](index=112&type=chunk)[113](index=113&type=chunk) - As of **June 30, 2025**, the **weighted average discount rate** for operating leases was **9%**, and the **weighted average remaining lease term** was **6.59 years**[114](index=114&type=chunk) Future Minimum Operating Lease Payments (in thousands) as of June 30, 2025 | Year | Amount | | :---------------- | :----- | | 2025 | $539 | | 2026 | $1,097 | | 2027 | $1,122 | | 2028 | $1,147 | | 2029 | $1,173 | | 2030 and thereafter | $2,533 | | Total Lease Payments | $7,611 | | Less: Interest | $(1,884) | | Present Value of Lease Liabilities | $5,727 | [10. Accrued Liabilities](index=26&type=section&id=10.%20Accrued%20Liabilities) Total accrued liabilities decreased from $2,986 thousand at December 31, 2024, to $2,841 thousand at June 30, 2025, primarily due to a reduction in deferred contract obligations Accrued Liabilities (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Accrued Salaries, Bonus, and Benefits | $1,362 | $1,569 | | Accrued Warranties | $50 | $50 | | Accrued Professional Services | $211 | $170 | | Accrued Investigational Sites | $73 | $45 | | Deferred Contract Obligation | $- | $1,045 | | Other | $1,145 | $107 | | Total Accrued Liabilities | $2,841 | $2,986 | [11. Convertible Preferred Stock and Stockholders' Equity](index=26&type=section&id=11.%20Convertible%20Preferred%20Stock%20and%20Stockholders%27%20Equity) This section details the company's capital structure, including common stock, Series A Convertible Preferred Stock, and various stock award plans - The **Series A Convertible Preferred Stock** has a stated value of **$1,000 per share**, is convertible at **$0.65 per share**, and bears a **6% cumulative annual dividend**[120](index=120&type=chunk) - The **2021 CEO Performance Award Unit Grant** consists of ten vesting tranches, totaling up to **13,000,000 shares**, tied to market capitalization milestones ranging from **$1.0 billion** to **$5.5 billion** and continued employment through **December 31, 2030**[121](index=121&type=chunk)[122](index=122&type=chunk)[123](index=123&type=chunk) - As of **June 30, 2025**, none of the CEO Performance Award milestones have been achieved, and there was approximately **$26.3 million** of **unrecognized stock-based compensation expense** remaining[126](index=126&type=chunk) Stock Option and SAR Activity (Six Months Ended June 30, 2025) | Category | Number of Options/SARs | Weighted Average Exercise Price per Share | | :-------------------------- | :--------------------- | :-------------------------------------- | | Outstanding, Dec 31, 2024 | 3,858,360 | $3.79 | | Granted | 673,000 | $1.62 | | Exercised | (24,300) | $1.96 | | Forfeited | (135,720) | $3.06 | | Outstanding, June 30, 2025 | 4,371,340 | $3.49 | Restricted Stock Unit Activity (Six Months Ended June 30, 2025) | Category | Number of Restricted Stock Units | Weighted Average Grant Date Fair Value per Unit | | :-------------------------- | :------------------------------- | :---------------------------------------------- | | Outstanding, Dec 31, 2024 | 1,546,532 | $3.36 | | Granted | 954,093 | $1.67 | | Vested | (120,000) | $5.24 | | Outstanding, June 30, 2025 | 2,380,625 | $2.59 | [12. Product Warranty Provisions](index=29&type=section&id=12.%20Product%20Warranty%20Provisions) The company provides a one-year warranty for capital systems, with costs estimated based on historical experience and product performance Warranty Accrual (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Warranty Accrual, Beginning of Period | $50 | $107 | | Accrual Adjustment | $1 | $6 | | Payments Made | $(1) | $(63) | | Warranty Accrual, End of Period | $50 | $50 | [13. Commitments and Contingencies](index=29&type=section&id=13.%20Commitments%20and%20Contingencies) The company is involved in claims in the ordinary course of business, which management believes will not materially affect its financial position - A **letter of credit** for approximately **$1.8 million**, related to a lease agreement, was fully delivered and completed in **May 2025**[136](index=136&type=chunk) - The **company is contesting a vendor's UCC financing statements** filed in **February 2024** for approximately **$0.6 million**, believing them to be without merit[135](index=135&type=chunk) [14. Subsequent Events](index=29&type=section&id=14.%20Subsequent%20Events) Subsequent to the reporting period, Stereotaxis entered into a registered direct offering on July 17, 2025, to sell $12.5 million in common stock - On **July 17, 2025**, **Stereotaxis entered a registered direct offering** to sell **$12.5 million** in common stock at **$2.00 per share**[137](index=137&type=chunk) - An **initial closing** on **July 18, 2025**, resulted in the issuance of **4,250,000 shares** and **$8.5 million** in gross proceeds, with an additional **2,000,000 shares** and **$4.0 million** expected by **November 25, 2025**[137](index=137&type=chunk) - On **August 7, 2025**, **417,710 common shares** were issued as partial settlement of the APT acquisition earnout consideration[138](index=138&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on Stereotaxis' financial condition and operational results for the periods ended June 30, 2025, covering business overview, corporate developments, and financial analysis [Overview](index=30&type=section&id=Overview) Stereotaxis specializes in robotic magnetic navigation (RMN) systems for endovascular interventions, primarily cardiac ablation, aiming to improve precision, stability, and safety - **Stereotaxis specializes in robotic magnetic navigation (RMN) systems** for endovascular interventions, primarily cardiac ablation, aiming to improve precision, stability, and safety[141](index=141&type=chunk)[143](index=143&type=chunk) - The **company's product portfolio includes** Genesis RMN, GenesisX RMN, and Odyssey Solution, with a strategy to expand into coronary, neuro, and peripheral interventions[144](index=144&type=chunk)[145](index=145&type=chunk)[146](index=146&type=chunk) - **Business model involves upfront capital payments** for equipment and installation, and recurring payments for disposable costs, service, and software updates[149](index=149&type=chunk) [Corporate Developments](index=32&type=section&id=Corporate%20Developments) This section highlights recent corporate developments, including the APT acquisition and significant regulatory milestones - **Acquisition of Access Point Technologies EP, Inc. (APT)** on **July 31, 2024**, integrated in-house catheter development and manufacturing expertise[153](index=153&type=chunk)[154](index=154&type=chunk) - **Regulatory milestones include** CE Mark for GenesisX RMN System (Q3 2024), NMPA approval for Genesis RMN in China (Nov 2024), CE Mark for Stereotaxis MAGiC catheter in Europe (Q1 2025), and FDA 510(k) clearance for MAGiC Sweep™ catheter in the U.S. (July 2025)[155](index=155&type=chunk)[156](index=156&type=chunk) [Tariff and Trade Regulation Update](index=33&type=section&id=Tariff%20and%20Trade%20Regulation%20Update) This section provides an update on the global tariff environment and its potential impact on the company's cost structure and operations - The **global tariff environment** remains fluid, with potential impacts on **cost structure**, **gross margins**, and product launch timing[157](index=157&type=chunk) - U.S. tariffs on Mexican and Canadian imports (**25% to 35%**) have immaterial impact due to USMCA qualification of sub-assemblies[158](index=158&type=chunk) - A **10% universal 'baseline' tariff** on non-USMCA imports, effective **April 2, 2025**, is expected to **increase cost of revenues** and R&D expenses in H2 **2025**[159](index=159&type=chunk) - U.S.-China tariffs were reduced to a base rate of **~30%** (U.S. duties on Chinese goods) and **~10%** (China duties on U.S. goods) as of **May 12, 2025**, with a **less than 1% expense increase** anticipated for H2 **2025** if rates remain[162](index=162&type=chunk) - **Increased Section 232 tariffs** on steel and aluminum (**25% to 50%**, effective **June 4, 2025**) could lead to an effective rate of up to **60%** on certain specialty alloys, with long-term effects difficult to predict[163](index=163&type=chunk) [Other Risks and Uncertainties](index=33&type=section&id=Other%20Risks%20and%20Uncertainties) This section discusses ongoing macroeconomic and geopolitical factors, hospital customer pressures, and capital market disruptions that pose risks to the company - **Ongoing macroeconomic and geopolitical factors**, including supply chain disruptions, inflation, and conflicts, continue to impact sourcing, shipping, and manufacturing[165](index=165&type=chunk) - **Hospital customers face staffing and cost pressures**, and liquidity concerns from elevated interest rates, potentially delaying or canceling orders and reducing demand for disposable products[166](index=166&type=chunk) - **Disruptions to capital markets** could negatively impact the company's ability to raise capital and customers' ability to fund projects, leading to delayed spending and increased default risks[167](index=167&type=chunk) - The company has incurred **cumulative net losses** of approximately **$571.4 million** as of **June 30, 2025**, and expects further losses in **2025** as it continues product development and commercialization[170](index=170&type=chunk) - The company believes **existing cash and July 2025 equity raise proceeds** will be sufficient but cannot guarantee future funding availability on acceptable terms[171](index=171&type=chunk) [Critical Accounting Policies and Estimates](index=35&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section outlines the company's critical accounting policies and estimates, which require significant judgment in the preparation of financial statements - The **preparation of consolidated financial statements requires significant estimates and judgments**, which are reviewed on an ongoing basis[172](index=172&type=chunk) [Revenue Recognition](index=35&type=section&id=Revenue%20Recognition) This section details the company's revenue recognition policies and sources, including systems, disposables, and recurring services - **Revenue is recognized** in accordance with ASC 606, based on legally enforceable contracts, identified rights, commercial substance, and probable collectability[174](index=174&type=chunk) - For contracts with **multiple performance obligations**, revenue is allocated based on relative standalone selling prices, which are estimated considering market conditions and entity-specific factors[176](index=176&type=chunk) - **System revenue is recognized** upon transfer of control (delivery/installation acceptance), while **disposable revenue is recognized** at shipment or delivery[177](index=177&type=chunk)[178](index=178&type=chunk) - **Other recurring revenue** (service, software enhancements) is deferred and amortized over the service or update period, typically one year[180](index=180&type=chunk) [Assets Recognized from the Costs to Obtain a Contract with a Customer](index=37&type=section&id=Assets%20Recognized%20from%20the%20Costs%20to%20Obtain%20a%20Contract%20with%20a%20Customer) This section outlines the capitalization of sales incentive programs as contract acquisition costs - **Sales incentive programs** for the sales team are capitalized as **contract acquisition costs**, totaling approximately **$0.1 million** as of **June 30, 2025**, and **December 31, 2024**[183](index=183&type=chunk) [Cost of Contracts](index=39&type=section&id=Cost%20of%20Contracts) This section describes the components of costs of systems and disposable revenue recognized at the time of sale - **Costs of systems revenue** include direct product costs, installation labor, warranty, and initial training, recognized at the time of sale[184](index=184&type=chunk) - **Costs of disposable revenue** include direct product costs and estimated warranty costs, recognized at the time of sale[184](index=184&type=chunk) [Stock-Based Compensation](index=39&type=section&id=Stock-Based%20Compensation) This section outlines the valuation and recognition methods for time-based and market-based stock awards - **Stock compensation expense** for time-based awards is determined using the Black-Scholes model and amortized straight-line over the vesting period (generally four years)[185](index=185&type=chunk) - **Market-based awards** are valued using Monte Carlo simulations, with expense recognized over the minimum service period regardless of market target achievement[186](index=186&type=chunk) [Results of Operations](index=39&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, detailing revenue, cost of revenue, gross margin, and operating expenses for the reported periods [Comparison of the Three Months Ended June 30, 2025, and 2024](index=39&type=section&id=Comparison%20of%20the%20Three%20Months%20Ended%20June%2030%2C%202025%2C%20and%202024) This section compares the company's financial performance for the three months ended June 30, highlighting significant changes in revenue, costs, and operating expenses Revenue (Three Months Ended June 30, in millions) | Category | 2025 | 2024 | Change (%) | | :-------------------------- | :--- | :--- | :--------- | | Total Revenue | $8.8 | $4.5 | 95% | | Systems Revenue | $3.0 | $0.2 | 1400% | | Disposables, Service & Accessories | $5.8 | $4.3 | 35% | Cost of Revenue & Gross Margin (Three Months Ended June 30, in millions) | Category | 2025 | 2024 | Change (%) | | :-------------------------- | :--- | :--- | :--------- | | Total Cost of Revenue | $4.2 | $1.2 | 255% | | Overall Gross Margin (%) | 52% | 74% | -22 pp | | Disposables, Service & Accessories Gross Margin (%) | 68% | 76% | -8 pp | Operating Expenses (Three Months Ended June 30, in millions) | Category | 2025 | 2024 | Change (%) | | :-------------------------- | :--- | :--- | :--------- | | Research and Development | $1.8 | $2.3 | -22% | | Sales and Marketing | $3.3 | $3.3 | 0% | | General and Administrative | $4.0 | $3.8 | 6% | | Other Operating Expense | $(0.5) | $0.0 | N/A | [Comparison of the Six Months Ended June 30, 2025 and 2024](index=41&type=section&id=Comparison%20of%20the%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) This section compares the company's financial performance for the six months ended June 30, detailing trends in revenue, costs, and operating expenses Revenue (Six Months Ended June 30, in millions) | Category | 2025 | 2024 | Change (%) | | :-------------------------- | :--- | :--- | :--------- | | Total Revenue | $16.3 | $11.4 | 43% | | Systems Revenue | $5.0 | $2.9 | 72% | | Disposables, Service & Accessories | $11.3 | $8.5 | 32% | Cost of Revenue & Gross Margin (Six Months Ended June 30, in millions) | Category | 2025 | 2024 | Change (%) | | :-------------------------- | :--- | :--- | :--------- | | Total Cost of Revenue | $7.6 | $4.1 | 86% | | Overall Gross Margin (%) | 53% | 64% | -11 pp | | Disposables, Service & Accessories Gross Margin (%) | 68% | 76% | -8 pp | Operating Expenses (Six Months Ended June 30, in millions) | Category | 2025 | 2024 | Change (%) | | :-------------------------- | :--- | :--- | :--------- | | Research and Development | $4.1 | $4.5 | -9% | | Sales and Marketing | $6.4 | $6.3 | 2% | | General and Administrative | $8.5 | $7.2 | 18% | | Other Operating Expense | $(0.5) | $0.0 | N/A | | Net Interest Income | $0.2 | $0.4 | -50% | [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's financial position, including cash, working capital, cash flows, and debt, and its ability to fund operations - As of **June 30, 2025**, the company had **$7.0 million** in cash and cash equivalents and working capital of **$1.2 million**, **decreased** from **$4.8 million** at **December 31, 2024**[200](index=200&type=chunk) Cash Flow Summary (Six Months Ended June 30, in thousands) | Activity | 2025 | 2024 | | :-------------------------- | :----- | :----- | | Operating Activities | $(5,512) | $(5,434) | | Investing Activities | $(23) | $(22) | | Financing Activities | $66 | $58 | - **Net cash used in operating activities increased** slightly to **$5.5 million** in H1 **2025**, driven by changes in working capital[202](index=202&type=chunk) - The company had no debt as of **June 30, 2025**[205](index=205&type=chunk) [Off-Balance Sheet Arrangements](index=42&type=section&id=Off-Balance%20Sheet%20Arrangements) This section confirms the absence of off-balance sheet arrangements or relationships with unconsolidated entities - The company does not have any off-balance sheet arrangements or relationships with unconsolidated entities, nor does it engage in trading activities involving non-exchange traded contracts[206](index=206&type=chunk) [Item 3. [Reserved]](index=29&type=section&id=Item%203.%20%5BReserved%5D) This item is reserved and contains no information [Item 4. Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Management evaluated the effectiveness of the company's disclosure controls and procedures as of June 30, 2025, concluding they were effective - The company's **disclosure controls and procedures** were deemed **effective** as of **June 30, 2025**[208](index=208&type=chunk) - **No material changes** in internal control over financial reporting occurred during the period[209](index=209&type=chunk) - The company is in the process of reviewing and integrating the internal control structure of the **acquired Access Point Technologies EP, Inc. business**[210](index=210&type=chunk) Part II Other Information [Item 1. Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) This item states that there are no legal proceedings to report - **No legal proceedings are reported**[213](index=213&type=chunk) [Item 1A. Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) This item states that there are no new risk factors to report - **No new risk factors are reported**[214](index=214&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This item states that there are no unregistered sales of equity securities or use of proceeds to report - **No unregistered sales of equity securities or use of proceeds are reported**[215](index=215&type=chunk) [Item 3. Defaults upon Senior Securities](index=43&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) This item states that there are no defaults upon senior securities to report - **No defaults upon senior securities are reported**[216](index=216&type=chunk) [Item 4. [Reserved]](index=43&type=section&id=Item%204.%20%5BReserved%5D) This item is reserved and contains no information - **This item is reserved**[217](index=217&type=chunk) [Item 5. Other Information](index=43&type=section&id=Item%205.%20Other%20Information) This item states that there is no other information to report - **No other information is reported**[218](index=218&type=chunk) [Item 6. Exhibits](index=43&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the Form 10-Q, including organizational documents, certifications, and XBRL-related documents - Exhibits include Restated Articles of Incorporation, Certificate of Amendment, Certificate of Designations for Series A Preferred Stock, Restated Bylaws, and various certifications (Rule 13a-14(a)/15d-14(a), Section 1350)[219](index=219&type=chunk) - XBRL documents (Instance, Schema, Calculation, Definition, Label, Presentation Linkbase Documents) are also included[219](index=219&type=chunk)[220](index=220&type=chunk) [Signatures](index=45&type=section&id=Signatures) The report is duly signed on behalf of Stereotaxis, Inc. by its Chief Executive Officer, David L. Fischel, and Chief Financial Officer, Kimberly R. Peery, on August 13, 2025 - The **report was signed by David L. Fischel**, Chief Executive Officer, and Kimberly R. Peery, Chief Financial Officer, on **August 13, 2025**[223](index=223&type=chunk) ```

Group 1: Earnings Performance - Stereotaxis Inc. reported a quarterly loss of $0.05 per share, better than the Zacks Consensus Estimate of a loss of $0.07, representing an earnings surprise of +28.57% [1] - The company posted revenues of $8.8 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 10.67%, compared to revenues of $4.5 million a year ago [2] - Over the last four quarters, Stereotaxis has surpassed consensus EPS estimates just once, but has topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Stereotaxis shares have lost about 1.3% since the beginning of the year, while the S&P 500 has gained 7.9% [3] - The company's earnings outlook will be crucial for future stock performance, with current consensus EPS estimates at -$0.06 for the coming quarter and -$0.25 for the current fiscal year [4][7] - The current Zacks Rank for Stereotaxis is 3 (Hold), indicating expected performance in line with the market in the near future [6] Group 3: Industry Context - The Medical - Instruments industry, to which Stereotaxis belongs, is currently in the bottom 41% of over 250 Zacks industries, which may impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 totaled $8.8 million, a growth of 95% from $4.5 million in Q2 2024 and an 18% sequential growth compared to $7.5 million in Q1 2025 [15][16] - System revenue for Q2 was $3 million, while recurring revenue was $5.8 million, compared to $200,000 and $4.3 million in the prior year's second quarter [15][16] - Gross margin for Q2 2025 was 52% of revenue, with recurring revenue gross margin at 68% and system gross margin at 22% [17] - Operating loss and net loss for Q2 2025 were $4 million and $3.8 million, respectively, compared to $6 million and $5.8 million in the previous year [18] Business Line Data and Key Metrics Changes - The Genesis X system was successfully transferred to manufacturing, with the first commercial system expected to be installed in Europe [6][14] - The MAGIC ablation catheter contributed approximately $200,000 in revenue from initial European customers during Q2 2025, with usage at about 30% of EU accounts [7][10] - The FDA clearance of the MAGIC Sweep high-density mapping catheter was a significant milestone, expected to enhance robotic utilization and disposable revenue per procedure [9][10] Market Data and Key Metrics Changes - The company anticipates a gradual increase in the utilization of MAGIC catheters across various procedures, with a broad label for ablation in all four chambers of the heart [35] - The company expects to launch new technologies with a focus on accelerating growth while improving margins and achieving profitability [20] Company Strategy and Development Direction - The innovation strategy is based on four pillars: making robots widely available, building an ecosystem of catheters, developing interventional devices, and establishing a digital backbone [4] - The transition from a single-application robot to a platform for endovascular surgery is expected to significantly increase the total addressable market [12] - The company plans to gradually shift to a model of having one clinical representative per hospital to enhance support and utilization [28][30] Management's Comments on Operating Environment and Future Outlook - Management reiterated revenue guidance of double-digit growth for the full year 2025, with expectations of system revenue fluctuating between $2 million to $3 million per quarter [20] - The company is preparing for a full launch of Genesis X and expects to see significant growth in capital sales next year [30] - Management expressed confidence in achieving regulatory approvals and the collaborative nature of interactions with the FDA [43] Other Important Information - The company had cash and cash equivalents of $7 million as of June 30, 2025, with no debt, and announced a registered direct financing for the sale of $12.5 million in shares [18][19] - Following the financing, the company expects to have $18.8 million in cash, which will support the acceleration of its innovation strategy [19] Q&A Session Summary Question: Discussion on financing and commercial strategy - Management indicated plans to build out the sales force to support new product launches, with a current commercial team of about 40 people [26][28] Question: Progress of MAGIC RF catheter in Europe - Approximately 30% of European accounts have started using MAGIC, with usage across a broad range of procedures [35] Question: FDA interactions regarding MAGIC - Management described ongoing collaborative interactions with the FDA, with expectations for approval in the second half of the year [43]

[Executive Summary & Business Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Highlights) [Company Overview and Strategic Vision](index=1&type=section&id=Company%20Overview%20and%20Strategic%20Vision) Stereotaxis, a leader in surgical robotics, reported strong Q2 2025 commercial results, driven by innovations. The company is establishing a new foundational product ecosystem and has strengthened its balance sheet through recent equity financing to accelerate adoption - Stereotaxis is a pioneer and global leader in surgical robotics for minimally invasive endovascular intervention[2](index=2&type=chunk) - The company is pleased with sequential and year-over-year growth in both recurring and system revenue, reflecting the early positive impact of innovations on commercial adoption[3](index=3&type=chunk) - A recently completed equity financing has strengthened the balance sheet, enabling acceleration of the comprehensive innovation strategy[3](index=3&type=chunk) [Key Business Developments and Innovations](index=1&type=section&id=Key%20Business%20Developments%20and%20Innovations) A significant milestone was achieved with the recent FDA clearance of MAGiC Sweep, Stereotaxis' first interventional catheter clearance in nearly 20 years. Initial sales of MAGiC Sweep, along with MAGiC and Map-iT, are expected to contribute to ramping recurring revenue, with multiple additional regulatory approvals anticipated soon - Recent FDA clearance of MAGiC Sweep was a significant milestone, marking Stereotaxis' first FDA clearance for an interventional catheter in nearly 20 years[3](index=3&type=chunk) - Initial sales of MAGiC Sweep, along with MAGiC and Map-iT, are expected to contribute to increasing recurring revenue[3](index=3&type=chunk) - The company anticipates multiple additional regulatory approvals in the coming weeks and months, in line with previously shared timelines[3](index=3&type=chunk) [Financial Performance - Second Quarter 2025](index=1&type=section&id=Financial%20Performance%20-%20Second%20Quarter%202025) [Revenue Analysis](index=1&type=section&id=Revenue%20Analysis) Stereotaxis reported a substantial increase in total revenue for Q2 2025, driven by significant growth in both system and recurring revenue. System revenue saw a dramatic year-over-year increase due to partial recognition on two capital systems, including the first commercial GenesisX system, while recurring revenue also grew robustly Q2 2025 Revenue Performance | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Change | QoQ Change (vs. Q1 2025) | | :----------------- | :----------------- | :----------------- | :--------- | :------------------------ | | Total Revenue | $8.8 | $4.5 | 95% | 18% (vs. $7.5M) | | System Revenue | $3.0 | $0.2 | 1400% | N/A | | Recurring Revenue | $5.8 | $4.3 | 35% | N/A | - System revenue for Q2 2025 included partial revenue recognition on two capital systems, notably the first commercial GenesisX system[4](index=4&type=chunk) - Recurring revenue growth was attributed to contributions from Map-iT catheter revenue and the initial launch of MAGiC, Stereotaxis' proprietary robotically navigated ablation catheter[4](index=4&type=chunk) [Gross Margin](index=1&type=section&id=Gross%20Margin) The overall gross margin for Q2 2025 was 52%, with recurring revenue gross margin at 68% and system gross margin at 22%. Gross margins continue to be affected by acquisition-related accounting and low system production levels Q2 2025 Gross Margins | Metric | Q2 2025 Gross Margin | | :---------------------- | :------------------- | | Total Gross Margin | 52% | | Recurring Revenue Margin | 68% | | System Gross Margin | 22% | - Gross margins are impacted by acquisition-related accounting, which temporarily reduces disposable margin, and by fixed overhead allocated over low system production levels[5](index=5&type=chunk) [Operating Expenses and Profitability](index=1&type=section&id=Operating%20Expenses%20and%20Profitability) Operating expenses in Q2 2025 were $8.6 million, including $2.6 million in non-cash charges. Adjusted operating expenses decreased to $6.0 million, partly due to a favorable adjustment on acquisition-related contingent earnout consideration and a $0.5 million Employee Retention Tax Credit Q2 2025 Operating Expenses and Operating Loss | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | | :--------------------------- | :----------------- | :----------------- | | Total Operating Expenses | $8.6 | $9.3 | | Non-Cash Charges | $2.6 | N/A | | Adjusted Operating Expenses | $6.0 | $6.8 | | Operating Loss | ($4.0) | ($6.0) | - Operating expenses included **$2.6 million** of non-cash charges for stock compensation, acquisition-related contingent earnout consideration, and amortization of acquired intangible assets[6](index=6&type=chunk) - The company received a **$0.5 million** Employee Retention Tax Credit, which reduced current period operating expenses[6](index=6&type=chunk) [Net Loss and Free Cash Flow](index=1&type=section&id=Net%20Loss%20and%20Free%20Cash%20Flow) Stereotaxis reduced its net loss and adjusted net loss in Q2 2025 compared to the prior year. However, free cash flow remained negative, showing a slight increase in outflow Q2 2025 Net Loss and Free Cash Flow | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | | :---------------------- | :----------------- | :----------------- | | Net Loss | ($3.8) | ($5.8) | | Adjusted Net Loss | ($1.3) | ($3.3) | | Negative Free Cash Flow | ($3.7) | ($3.1) | [Financial Position and Liquidity](index=2&type=section&id=Financial%20Position%20and%20Liquidity) [Cash Balance and Recent Financing](index=2&type=section&id=Cash%20Balance%20and%20Recent%20Financing) As of June 30, 2025, Stereotaxis held $7.0 million in cash and cash equivalents with no debt. A subsequent registered direct financing in July, raising $12.5 million, significantly boosted the proforma cash balance to $18.8 million Cash and Liquidity | Metric | Amount (Millions) | | :------------------------- | :---------------- | | Cash & Equivalents (June 30, 2025) | $7.0 | | Debt (June 30, 2025) | $0 | | July Financing | $12.5 | | Proforma Cash Balance | $18.8 | - The company completed a first closing of **$8.5 million** in July from the registered direct financing[8](index=8&type=chunk) [Outlook and Forward-Looking Expectations](index=2&type=section&id=Outlook%20and%20Forward-Looking%20Expectations) Stereotaxis reiterates its expectation for double-digit revenue growth for the full year 2025, with specific targets for quarterly system and recurring revenue. The company anticipates substantial growth in 2026, supported by regulatory milestones and initial commercial launches, and expects its strengthened balance sheet to fund market advancement and profitable growth - Stereotaxis expects **double-digit revenue growth** for the full year 2025[9](index=9&type=chunk) 2025 Revenue Expectations | Metric | Expectation | | :------------------------- | :---------- | | System Revenue per Quarter | $2-3 million | | Q4 Recurring Revenue | $7 million | - Anticipated regulatory milestones and initial commercial launches in 2025 are expected to support substantial growth in 2026[9](index=9&type=chunk) - The company's balance sheet is expected to allow it to advance its transformative product ecosystem to market, fund commercialization, and achieve profitable growth[9](index=9&type=chunk) [Supplementary Information](index=2&type=section&id=Supplementary%20Information) [About Stereotaxis](index=2&type=section&id=About%20Stereotaxis) Stereotaxis is a global leader in surgical robotics for minimally invasive endovascular intervention, focused on developing robotic systems, instruments, and information solutions. Their technology aims to enhance patient care, expand access to therapy, and improve operating room efficiency, having treated over 150,000 patients worldwide - Stereotaxis is a pioneer and global leader in innovative surgical robotics for minimally invasive endovascular intervention[11](index=11&type=chunk) - The company's mission is to discover, develop, and deliver robotic systems, instruments, and information solutions for the interventional laboratory[11](index=11&type=chunk) - Stereotaxis technology has been used to treat over **150,000 patients** across the United States, Europe, Asia, and elsewhere[11](index=11&type=chunk) [Forward-Looking Statements Disclaimer](index=2&type=section&id=Forward-Looking%20Statements%20Disclaimer) This section provides a standard disclaimer regarding forward-looking statements, highlighting that such statements involve inherent risks and uncertainties that could cause actual results to differ materially. The company undertakes no obligation to update these statements - Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially[12](index=12&type=chunk) - Factors causing differences include managing expenses, market acceptance, global economic conditions, competitive factors, healthcare policy changes, dependence on third-party vendors, and timing of regulatory approvals[12](index=12&type=chunk) - The Company undertakes no obligation to update these statements for revisions or changes after the date of this release[12](index=12&type=chunk) [Company Contacts](index=2&type=section&id=Company%20Contacts) Contact information for Stereotaxis' Chairman and CEO, David L. Fischel, and Chief Financial Officer, Kimberly R. Peery, is provided for investor inquiries - Contact information for investor relations is provided, including David L. Fischel (Chairman and CEO) and Kimberly R. Peery (Chief Financial Officer)[13](index=13&type=chunk) [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Operations](index=3&type=section&id=Consolidated%20Statements%20of%20Operations) The unaudited Consolidated Statements of Operations detail the company's financial performance for the three and six months ended June 30, 2025, and 2024, showing revenue, cost of revenue, gross margin, operating expenses, and net loss Consolidated Statements of Operations (Unaudited) | (in thousands, except share and per share amounts) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | **Revenue:** | | | | | | Systems | $3,038 | $240 | $5,002 | $2,852 | | Disposables, service and accessories | 5,760 | 4,262 | 11,268 | 8,530 | | **Total revenue** | **8,798** | **4,502** | **16,270** | **11,382** | | **Cost of revenue:** | | | | | | Systems | 2,366 | 187 | 4,033 | 2,087 | | Disposables, service and accessories | 1,853 | 1,002 | 3,594 | 2,016 | | **Total cost of revenue** | **4,219** | **1,189** | **7,627** | **4,103** | | **Gross margin** | **4,579** | **3,313** | **8,643** | **7,279** | | **Operating expenses:** | | | | | | Research and development | 1,777 | 2,273 | 4,127 | 4,516 | | Sales and marketing | 3,269 | 3,301 | 6,417 | 6,304 | | General and administrative | 4,002 | 3,760 | 8,497 | 7,226 | | Other | (492) | - | (492) | - | | **Total operating expenses** | **8,556** | **9,334** | **18,549** | **18,046** | | **Operating loss** | **(3,977)** | **(6,021)** | **(9,906)** | **(10,767)** | | Other expense | (1) | (3) | (1) | (3) | | Interest income, net | 152 | 191 | 258 | 430 | | **Net loss** | **$(3,826)** | **$(5,833)** | **$(9,649)** | **$(10,340)** | | Cumulative dividend on convertible preferred stock | (318) | (325) | (632) | (656) | | **Net loss attributable to common stockholders** | **$(4,144)** | **$(6,158)** | **$(10,281)** | **$(10,996)** | | **Net loss per share attributed to common stockholders:** | | | | | | Basic | $(0.05)$ | $(0.07)$ | $(0.12)$ | $(0.13)$ | | Diluted | $(0.05)$ | $(0.07)$ | $(0.12)$ | $(0.13)$ | | **Weighted average number of common shares and equivalents:** | | | | | | Basic | 87,952,086 | 84,570,738 | 87,861,231 | 84,025,335 | | Diluted | 87,952,086 | 84,570,738 | 87,861,231 | 84,025,335 | [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) The unaudited Consolidated Balance Sheets present the company's financial position as of June 30, 2025, and December 31, 2024, detailing assets, liabilities, and stockholders' equity Consolidated Balance Sheets (Unaudited) | (in thousands, except share amounts) | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :------------ | :---------------- | | **Assets** | | | | Current assets: | | | | Cash and cash equivalents | $6,967 | $12,217 | | Restricted cash - current | - | 219 | | Accounts receivable, net | 4,393 | 3,824 | | Inventories, net | 9,608 | 8,331 | | Prepaid expenses and other current assets | 936 | 1,848 | | **Total current assets** | **21,904** | **26,439** | | Property and equipment, net | 3,284 | 3,573 | | Goodwill | 3,764 | 3,764 | | Intangible assets, net | 6,899 | 7,358 | | Operating lease right-of-use assets | 5,204 | 5,483 | | Prepaid and other non-current assets | 118 | 107 | | **Total assets** | **$41,173** | **$46,724** | | **Liabilities and stockholders' equity** | | | | Current liabilities: | | | | Accounts payable | $6,730 | $5,668 | | Accrued liabilities | 1,731 | 2,922 | | Deferred revenue | 5,843 | 6,804 | | Current contingent consideration | 5,839 | 5,638 | | Current portion of operating lease liabilities | 605 | 570 | | **Total current liabilities** | **20,748** | **21,602** | | Long-term deferred revenue | 1,057 | 2,064 | | Long-term contingent consideration | 6,384 | 6,126 | | Operating lease liabilities | 5,122 | 5,436 | | Other liabilities | 1,110 | 64 | | **Total liabilities** | **34,421** | **35,292** | | Series A - Convertible preferred stock | 5,296 | 5,352 | | Stockholders' equity: | | | | Common stock | 86 | 85 | | Additional paid-in capital | 572,950 | 567,926 | | Treasury stock | (206) | (206) | | Accumulated deficit | (571,374) | (561,725) | | **Total stockholders' equity** | **1,456** | **6,080** | | **Total liabilities and stockholders' equity** | **$41,173** | **$46,724** |