Stereotaxis(STXS) - 2024 Q2 - Quarterly Report

Acquisition and Product Development - The Company issued 1,486,620 shares of its common stock as part of the acquisition of Access Point Technologies, Inc. (APT) on July 31, 2024[103]. - APT specializes in high-quality diagnostic catheters for cardiac ablation procedures, enhancing the Company's capabilities in treating complex arrhythmias[103]. - The acquisition includes contingent payments based on achieving specified product revenue and regulatory approval milestones through September 30, 2029[104]. - The primary clinical focus is on electrophysiology, specifically cardiac ablation, which is a multi-billion-dollar market with expected long-term growth[96]. - The Genesis RMN System and Odyssey Solution are key products designed to improve procedure efficiency and reduce x-ray exposure during interventions[98][99]. - The Company has received regulatory approvals for its products in the U.S., Europe, Canada, China, and Japan, and is pursuing additional registrations globally[101]. Financial Performance - Revenue decreased from $7.9 million for the three months ended June 30, 2023, to$4.5 million for the three months ended June 30, 2024, a decrease of 43%[120]. - Revenue from sales of systems decreased to $0.2 million for the three months ended June 30, 2024, from$3.3 million for the same period in 2023, driven by decreased system sales volumes[120]. - Overall gross margin increased to 74% for the three months ended June 30, 2024, from 53% for the same period in 2023, primarily due to changes in product mix[121]. - Revenue decreased from $14.4 million for the six months ended June 30, 2023, to$11.4 million for the same period in 2024, a decrease of approximately 21%[123]. - Cost of revenue decreased from $6.3 million for the six months ended June 30, 2023, to$4.1 million for the same period in 2024, a decrease of approximately 35%[124]. Expenses and Cash Flow - Research and development expenses decreased from $2.6 million for the three months ended June 30, 2023, to$2.3 million for the same period in 2024, a decrease of approximately 14%[122]. - General and administrative expenses increased from $3.5 million for the three months ended June 30, 2023, to$3.8 million for the same period in 2024, an increase of approximately 8%[123]. - Cash and cash equivalents as of June 30, 2024, were $15.2 million, down from$20.0 million as of December 31, 2023[127]. - Net cash used in operating activities was approximately $5.4 million for the six months ended June 30, 2024, compared to$5.7 million for the same period in 2023[127]. - The Company did not have any debt as of June 30, 2024[129]. Market and Operational Challenges - Supply chain disruptions and inflationary pressures continue to pose risks to the Company's operations and financial condition[105]. - The ongoing impact of the COVID-19 pandemic has affected demand for the Company's systems and disposable products, leading to potential revenue fluctuations[107].