Revenue Performance - Total net revenue for the three months ended March 31, 2021, was $1.118 million, a decrease of $256,000 from $1.374 million in the same period of 2020[107]. - Product sales decreased to $406,000 in Q1 2021 from $586,000 in Q1 2020, a decline of 30.7%[107]. - Service and other revenue also declined to $712,000 in Q1 2021 from $788,000 in Q1 2020, a decrease of 9.6%[107]. - The vascular segment generated minimal revenue of $4,000 in Q1 2021 compared to $113,000 in Q1 2020, reflecting a decrease of 96.5%[109]. - Dermatology segment revenue was $1.114 million in Q1 2021, down from $1.261 million in Q1 2020, a decrease of approximately 11.7%[111]. Expenses and Losses - Gross loss for Q1 2021 was $255,000, compared to a gross loss of $210,000 in Q1 2020, indicating a worsening of 21.4%[107]. - Total operating expenses decreased to $6.930 million in Q1 2021 from $7.580 million in Q1 2020, a reduction of $650,000[107]. - Research and development expenses increased to $2.816 million in Q1 2021 from $1.295 million in Q1 2020, an increase of 117.5%[107]. - SG&A expenses decreased by $2.2 million to $4.1 million, primarily due to reductions in legal expenses and other cost-saving measures[118]. - Management expects continued operating losses and negative cash flows due to ongoing clinical trials and the impact of the COVID-19 pandemic[128]. Cash Flow and Financial Position - Net cash used in operating activities was $8.1 million for the three months ended March 31, 2021, compared to $7.0 million in 2020[134][135]. - Cash and cash equivalents as of March 31, 2021, were $16.0 million, with an accumulated deficit of $160.4 million[127]. - Adjusted EBITDA was negative $6.1 million for the three months ended March 31, 2021, slightly improved from negative $6.2 million in 2020[126]. - As of March 31, 2021, the company had cash and cash equivalents of $16.0 million, which included net proceeds of $19.1 million from 2020 public offerings and $2.0 million from a Paycheck Protection Program loan[144]. Operational Impact and Future Outlook - The company expects continued negative impacts on revenue due to the COVID-19 pandemic, affecting both patient treatments and clinical trial enrollments[97]. - The company is focusing on obtaining an atherectomy indication for the DABRA catheter, with a pivotal study approved for up to 10 clinical sites and 100 subjects[93]. - Research and development expenses increased by $1.5 million to $2.8 million, driven by personnel, consulting expenses, and clinical study costs related to next-generation catheters[120]. Financial Policies and Risks - The company does not engage in off-balance sheet arrangements and had no material changes to contractual obligations during the reported period[141][142]. - A hypothetical 10% relative change in interest rates would not have had a material impact on the company's financial statements due to the short-term nature of cash and cash equivalents[145]. - Revenue is primarily denominated in U.S. dollars, and a 10% adverse change in foreign exchange rates would not have been material for the periods presented[146]. - The company has not entered into any material foreign currency hedging contracts but may consider doing so in the future as operations grow internationally[146]. - Inflation has not had a material effect on the company's business, but significant inflationary pressures could harm its financial condition[147]. - There have been no significant changes to critical accounting policies or estimates since the last annual report[139]. - The company believes that actual results may differ from estimates and assumptions made in financial reporting, which could be material[140]. - The investment policy focuses on liquidity and capital preservation, avoiding trading or speculative investments[144]. - The company does not have material exposure to changes in the fair value of assets due to interest rate fluctuations[145].
Catheter Precision(VTAK) - 2021 Q1 - Quarterly Report