Stereotaxis, Inc. (NYSE:STXS) Q2 2023 Earnings Conference Call August 10, 2023 10:00 AM ET Company Participants David Fischel - Chairman & Chief Executive Officer Kimberly Peery - Chief Financial Officer Conference Call Participants Frank Takkinen - Lake Street Capital Markets Adam Maeder - Piper Sandler Alex Nowak - Craig-Hallum Capital Josh Jennings - TD Cowen Neil Chatterji - B. Riley Securities Operator Good morning. Thank you for joining us for Stereotaxis' Second Quarter 2023 Earnings Conference Call. ...

Part I Financial Information [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The unaudited consolidated financial statements for Q1 2023 show a net loss of **$5.3 million**, with total assets decreasing to **$50.7 million** [Balance Sheets](index=4&type=section&id=Balance%20Sheets) Total assets decreased to **$50.7 million** by March 31, 2023, driven by reduced cash, and equity declined to **$23.7 million** Consolidated Balance Sheet Summary (in thousands) | Account | March 31, 2023 (USD) | December 31, 2022 (USD) | | :--- | :--- | :--- | | **Current Assets** | | | | Cash and cash equivalents | $5,623 | $8,586 | | Short-term investments | $20,041 | $19,844 | | Total current assets | $40,905 | $43,246 | | **Total Assets** | **$50,711** | **$53,413** | | **Current Liabilities** | | | | Total current liabilities | $14,269 | $14,291 | | **Total Liabilities** | **$21,418** | **$21,484** | | **Total Stockholders' Equity** | **$23,710** | **$26,346** | | **Total Liabilities and Stockholders' Equity** | **$50,711** | **$53,413** | [Statements of Operations](index=5&type=section&id=Statements%20of%20Operations) Q1 2023 total revenue decreased **7%** to **$6.5 million**, leading to a **$5.6 million** operating loss and **$5.7 million** net loss Statement of Operations Summary (in thousands, except per share data) | Metric | Q1 2023 (USD) | Q1 2022 (USD) | | :--- | :--- | :--- | | Total Revenue | $6,548 | $7,037 | | Gross Margin | $3,876 | $4,924 | | Total Operating Expenses | $9,495 | $9,013 | | Operating Loss | $(5,619) | $(4,089) | | Net Loss | $(5,347) | $(4,086) | | Net Loss per Share (Basic & Diluted) | $(0.07) | $(0.06) | [Statements of Cash Flows](index=8&type=section&id=Statements%20of%20Cash%20Flows) Net cash used in operating activities increased to **$2.8 million** in Q1 2023, with total cash balances decreasing to **$6.8 million** Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2023 (USD) | Three Months Ended March 31, 2022 (USD) | | :--- | :--- | :--- | | Net cash used in operating activities | $(2,802) | $(2,193) | | Net cash used in investing activities | $(349) | $(1,154) | | Net cash provided by financing activities | $56 | $54 | | **Net decrease in cash, cash equivalents, and restricted cash** | **$(3,095)** | **$(3,293)** | [Notes to Financial Statements](index=9&type=section&id=Notes%20to%20Financial%20Statements) Notes detail business operations, accounting policies, cardiac ablation focus, supply chain risks, and stock-based compensation - The company's primary products are the Genesis RMN System and the Odyssey Solution, focusing on cardiac ablation procedures for arrhythmias, with an aspiration to expand into other endovascular indications[25](index=25&type=chunk)[27](index=27&type=chunk) - The company continues to face risks from supply chain disruptions, inflation, and hospital staffing shortages, which can impact procedure volumes, system installations, and operating costs[37](index=37&type=chunk)[38](index=38&type=chunk)[40](index=40&type=chunk) - In April 2023, all outstanding shares of Series B Convertible Preferred Stock were converted into common stock on a one-for-one basis[96](index=96&type=chunk) - The company has a 10-year CEO Performance Award of up to **13 million shares** tied to market capitalization milestones. Stock-based compensation expense for this award was **$1.8 million** in Q1 2023[98](index=98&type=chunk)[103](index=103&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A highlights a **7% revenue decrease** to **$6.5 million** in Q1 2023, lower gross margin, and **$26.8 million** liquidity [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Q1 2023 revenue decreased **7%** to **$6.5 million**, driven by lower disposables and service revenue, with gross margin at **59%** Revenue Comparison (in millions) | Revenue Stream | Q1 2023 (USD) | Q1 2022 (USD) | Change | | :--- | :--- | :--- | :--- | | Systems | $1.8 | $1.6 | +12.5% | | Disposables, service, and accessories | $4.7 | $5.4 | -13.0% | | **Total Revenue** | **$6.5** | **$7.0** | **-7.0%** | - The decrease in disposables, service, and accessories revenue was primarily driven by lower royalties from Biosense Webster[151](index=151&type=chunk) - Gross margin decreased to **59%** in Q1 2023 from **70%** in Q1 2022, driven by changes in system product mix and increased costs under service contracts[152](index=152&type=chunk) - Operating expenses increased, with R&D up **12%** due to project timing and regulatory expenses, and Sales & Marketing up **7%** from higher travel and stock-based compensation[153](index=153&type=chunk)[154](index=154&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$6.8 million** in cash and **$20.0 million** in short-term investments, holding no debt Liquidity Position (in millions) | Metric | March 31, 2023 (USD) | December 31, 2022 (USD) | | :--- | :--- | :--- | | Cash, cash equivalents, and restricted cash | $6.8 | $9.9 | | Short-term investments | $20.0 | $19.8 | | Working Capital | $26.6 | $29.0 | - Net cash used in operating activities increased to **$2.8 million** in Q1 2023 from **$2.2 million** in Q1 2022, driven by a higher operating loss[159](index=159&type=chunk) - The company had no debt as of March 31, 2023[162](index=162&type=chunk) [Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of March 31, 2023, with no material internal control changes - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2023[165](index=165&type=chunk) - No material changes to the company's internal control over financial reporting were identified during the first quarter of 2023[166](index=166&type=chunk) Part II Other Information [Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no material legal proceedings during the period - The company reports no material legal proceedings[168](index=168&type=chunk) [Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) Updated risk factors highlight exposure to uninsured cash balances, with minimal impact from the SVB failure - The company highlights the risk of maintaining cash balances in excess of FDIC-insured limits at financial institutions[169](index=169&type=chunk) - Following the failure of Silicon Valley Bank (SVB), the company stated its cash balance at SVB was less than **6%** of its total cash and investments and it does not believe it has exposure to loss[169](index=169&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities were reported during the period - None reported[170](index=170&type=chunk)

Stereotaxis, Inc. (NYSE:STXS) Q1 2023 Earnings Conference Call May 9, 2023 10:00 AM ET Company Participants David Fischel - CEO & Chairman Kimberly Peery - CFO & Secretary Conference Call Participants Joshua Jennings - TD Cowen Frank Takkinen - Lake Street Capital Markets Alexander Nowak - Craig-Hallum Capital Group Neil Chatterji - B. Riley Securities Adam Maeder - Piper Sandler Operator Good morning. Thank you for joining us for Stereotaxis' First Quarter 2023 Earnings Conference Call. Certain statements ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (MARK ONE) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER 001-36159 STEREOTAXIS, INC. (Exact name of the Registrant as Specified in its Charter) DELAWARE 94-3120386 (State or Other Jurisdiction o ...

Financial Data and Key Metrics Changes - Revenue for the fourth quarter of 2022 totaled $7.3 million, down from $8.2 million in the prior year fourth quarter. Full year revenue was $28.1 million compared to $35 million in 2021 [45][47] - System revenue for the full year 2022 was $6.8 million, compared to $11.2 million in the prior year, impacted by hospital construction delays [45][47] - Recurring revenue for the full year was $21.3 million, down from $22.9 million, reflecting procedure volatility and service renewal timing [20][47] - Operating loss for the fourth quarter was $4.5 million, compared to approximately $3.4 million for the previous year [21][47] - Adjusted operating loss for the full year 2022 was $8.3 million, compared to $3.6 million in the prior year [47] Business Line Data and Key Metrics Changes - The company reported a system backlog of $14.8 million at the start of 2023, indicating potential revenue recognition from this backlog [18][43] - Gross margin for the fourth quarter and full year 2022 were approximately 59% and 66% of revenue, respectively [20][45] - System gross margins reflect significant allocations of fixed overhead expenses, with full year gross margins of 82% on recurring revenue and 15% for system revenue [20][47] Market Data and Key Metrics Changes - Approximately 40% of procedure volume comes from Europe, with significant interest in the upcoming MAGiC catheter launch [30][34] - The company expects to see a recovery in procedures in China as COVID restrictions ease, which should positively impact recurring revenue [65] Company Strategy and Development Direction - The company aims to transform endovascular surgery with robotics, addressing limitations of manual handheld catheters [8][9] - Key innovations include the MAGiC catheter, a smaller self-shielding robot, and a family of interventional guidewires and catheters, which are expected to drive growth [13][40] - The company is focused on building a robust sales team and improving its capital sales strategy to enhance market penetration [100] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit revenue growth in 2023, driven by backlog revenue recognition and new system orders [18][23] - The company anticipates that the launch of new products will significantly accelerate both system and recurring revenue adoption in the coming years [23][88] - Management acknowledged the challenges posed by hospital construction delays and the need for improved customer urgency in the sales process [72][93] Other Important Information - The company moved into a new custom-built headquarters and manufacturing facility, which is expected to enhance operations and support future growth [42][44] - The company has approximately $30 million in cash and no debt, providing a strong balance sheet to support its strategic initiatives [44][49] Q&A Session Summary Question: What is the expected adoption of the MAGiC catheter in Europe? - Management noted strong excitement among physicians for the MAGiC catheter, with plans for a limited market release to ensure a smooth launch [26][53] Question: What are the expectations for system revenue growth in 2023? - Management expects system revenue to grow due to recognizing the majority of the backlog and increased orders compared to 2022 [71][78] Question: How does the company plan to address the sales cycle challenges? - Management highlighted the importance of building a robust capital sales team and improving customer engagement to drive urgency in the sales process [100][105]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER 001-36159 STEREOTAXIS, INC. (Exact name of the Registrant as Specified in its Charter) DELAWARE 94-3120386 (State or Other Juris ...

Financial Data and Key Metrics Changes - Revenue for Q3 2022 totaled $7.7 million, with recurring revenue consistent at $5.3 million compared to the prior year, while system revenue decreased to $2.4 million from $3.5 million due to hospital construction delays [26][27] - Gross margin for the quarter was 60%, with system gross margin at 16% and recurring revenue gross margin at 80, impacted by low production volume and significant fixed overhead expenses [27] - Operating loss and net loss for Q3 2022 were $5.1 million and $4.9 million, respectively, compared to $4.6 million for both in the previous year [29] - Negative free cash flow for the quarter was $2.7 million, significantly impacted by one-time expenses for a new headquarters and manufacturing facility, as well as an investment in inventory [30] Business Line Data and Key Metrics Changes - The company received 2 system orders during Q3, including a Genesis system in the U.S. and a Niobe system in China, with a strong start to Q4 with 2 signed purchase contracts [4][5] - The capital backlog expanded to over $13 million, or over $16 million including recent signed contracts, indicating a healthy pipeline of prospects across focused geographies [6][34] Market Data and Key Metrics Changes - Hospital construction timelines remain slow, impacting revenue recognition, but orders in the backlog are guaranteed with significant nonrefundable down payments [7][60] - The company noted that approximately half of its procedure volume comes from Europe and Asia, with a 15% year-over-year foreign exchange impact on revenue due to a strengthening U.S. dollar [66] Company Strategy and Development Direction - The company is focused on generating growth in orders and ensuring successful experiences with existing robotic practices, which is expected to positively reflect in financial statements [8][9] - The strategic innovation plan includes the development of the MAGiC catheter, mobile robot, and collaborations with MicroPort, aiming to transform endovascular surgery with robotics [13][20] - The company plans to offer multiple financial access options for the mobile robot, including purchase, lease, or disposable purchase commitments, to facilitate adoption [72] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in predicting system revenue and decided to avoid specific revenue guidance until forecasting abilities improve [32] - The existing system backlog and capital pipeline are expected to support year-over-year revenue growth in the coming quarters, with new technology launches anticipated to drive substantial growth [33][34] - The macro environment remains challenging, with hospitals facing financial and staffing pressures, but the company is pleased with order activity and pipeline shaping up positively [81][82] Other Important Information - The MAGiC Ablation catheter's CE Mark submission was made in July, and the technical review is currently underway, with expectations for U.S. FDA approval approximately two years after submission [14][16] - The collaboration with MicroPort in China is progressing well, with regulatory submissions and commercial preparations advancing in tandem [18][21] Q&A Session All Questions and Answers Question: Can you provide color around backlog and revenue recognition? - The backlog was over $13 million at the end of the quarter, and it is expected to convert to revenue within a year, although some orders may take longer [39][40] Question: What is the status of the MAGiC RF catheter CE Mark approval? - The completeness check was successful, and the technical review is ongoing, with confidence in the quality of the submission [44][45] Question: How is the sales funnel shaping up? - There are over a dozen opportunities in the U.S. and Europe, with a growing number in China, as the company tracks the sales funnel more systematically [52][53] Question: What is happening with construction timeline variability? - The delays are primarily due to staffing issues and engagement with external contractors, rather than budget approval [60][61] Question: What is the status of the mobile robot system? - The initial launch is still on track for next summer, with submissions expected in the first half of next year [67][68] Question: How is the company preparing the commercial organization for the mobile robot? - The focus is on building a robust capital sales capability in Europe, with plans to offer multiple financial access options for customers [78][72] Question: What is the current state of the market in China? - The company is seeing positive developments with MicroPort, and while the sales funnel has been driven by Stereotaxis, MicroPort is beginning to build its sales capability [89][95]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER 001-36159 STEREOTAXIS, INC. (Exact name of the Registrant as Specified in its Charter) DELAWARE 94-3120386 (State or Other Jurisdicti ...

Stereotaxis, Inc. (NYSE:STXS) Q2 2022 Earnings Conference Call August 9, 2022 10:00 AM ET Company Representatives David Fischel - Chairman, Chief Executive Officer Kim Peery - Chief Financial Officer Conference Call Participants Josh Jennings - Cowen Adam Maeder - Piper Sandler Neil Chatterji - B. Riley Alex Nowak - Craig-Hallum Capital Group Frank Takkinen - Lake Street Capital Markets Nathan Weinstein - Aegis Capital Javier Fonseca - Spartan Capital Operator Good morning! Thank you for joining us for Ster ...

INVESTOR PRESENTATION 1Q 2022 FORWARD LOOKING STATEMENT 2 During the course of this presentation, the Company may make projections and other forward-looking statements regarding future events or the future financial performance of the Company, including without limitation, statements regarding future operating results, growth opportunities and other statements that refer to Stereotaxis' plans, prospects, expectations, strategies, intentions and beliefs. These statements are subject to many risks and uncerta ...