Revenue Performance - Total net revenue for Q2 2021 was $1,005,000, an increase of 11.7% compared to $900,000 in Q2 2020[113]. - Product sales increased to $318,000 in Q2 2021 from $154,000 in Q2 2020, a growth of 106.5%[113]. - Service and other revenue decreased to $687,000 in Q2 2021 from $746,000 in Q2 2020, a decline of 7.9%[113]. - Total net revenue for the three months ended June 30, 2021, was $1.005 million, an increase of $105,000 compared to $900,000 in 2020[115]. - Vascular segment net revenue decreased to $9,000 for the three months ended June 30, 2021, down from $78,000 in 2020, a decline of approximately 88.5%[116]. - Dermatology segment net revenue increased to $996,000 for the three months ended June 30, 2021, up from $822,000 in 2020, an increase of approximately 21.2%[119]. Expenses and Losses - Gross loss for Q2 2021 was $(483,000), compared to $(267,000) in Q2 2020, reflecting a deterioration of 81%[113]. - Selling, general and administrative expenses decreased significantly to $3,741,000 in Q2 2021 from $7,896,000 in Q2 2020, a reduction of 47.4%[113]. - Research and development expenses increased to $3,018,000 in Q2 2021 from $1,953,000 in Q2 2020, an increase of 54.6%[113]. - The operating loss for Q2 2021 was $(7,242,000), an improvement of 28.5% compared to $(10,116,000) in Q2 2020[113]. - Gross loss for the three months ended June 30, 2021, was $483,000, compared to a gross loss of $267,000 in 2020, an increase of approximately 80.9%[126]. - Selling, general and administrative (SG&A) expenses decreased to $3.7 million for the three months ended June 30, 2021, down from $7.9 million in 2020, a decrease of approximately 53.2%[133]. - Research and development (R&D) expenses increased to $3.0 million for the three months ended June 30, 2021, up from $2.0 million in 2020, an increase of 50%[135]. - Adjusted EBITDA for the three months ended June 30, 2021, was negative $6.1 million, an improvement from negative $8.4 million in 2020[142]. Cash Flow and Financing - As of June 30, 2021, the company had cash and cash equivalents of $20.2 million and an accumulated deficit of $165.7 million[144]. - Net cash used in operating activities for the six months ended June 30, 2021, was $14.7 million, compared to $12.8 million for the same period in 2020[150][151]. - Net cash provided by financing activities was $10.6 million for the six months ended June 30, 2021, primarily from an "at the market" offering[154]. - Net cash provided by investing activities was $0.5 million for the six months ended June 30, 2021, a significant decrease from $16.0 million in the same period in 2020[153]. Future Outlook and Concerns - The company expects net revenue to continue to be negatively impacted by the COVID-19 pandemic, as patients postpone voluntary treatments and physician offices operate at reduced capacity[118]. - The company expects operating losses and negative cash flows to continue due to costs related to clinical trials and ongoing litigation, exacerbated by the COVID-19 pandemic[145]. - The company plans to address liquidity concerns by potentially raising additional funds through public or private equity or debt financings[148]. - Future capital requirements will depend on the successful completion of clinical trials and the revenue generated from product sales, particularly DABRA and Pharos products[147]. - The company incurred significant legal and related expenses, which are expected to remain high in the near term due to ongoing legal proceedings[146]. - The company continues to analyze opportunities for cost reductions, including potential workforce reductions and deferring capital expenditures[145]. - The company has raised substantial doubt about its ability to continue as a going concern for at least 12 months from the date of the financial statements due to ongoing uncertainties[148]. Clinical and Product Development - The company enrolled 69 subjects in its pivotal study for atherectomy indication as of August 2, 2021, with the study approved for up to 100 subjects[100]. - The DABRA catheter's shelf life is expected to be at least six months based on internal real-time aging test data[98]. - The company is evaluating multiple strategic options for its dermatology business, including potential investments and partnerships[102].
Catheter Precision(VTAK) - 2021 Q2 - Quarterly Report