Financial Performance - Ra Medical Systems, Inc. reported net revenue of $9,000 for the three months ended March 31, 2022, compared to $4,000 in the same period of 2021, reflecting an increase due to catheter sales to clinical trial sites [96]. - For the three months ended March 31, 2022, the company reported a loss from continuing operations of $5.5 million, an improvement from a loss of $6.9 million in the same period of the prior year [106]. - Adjusted EBITDA for the same period was $(5.1) million, a decrease in negative Adjusted EBITDA of $0.9 million compared to $(6.0) million in the prior year, primarily due to reduced SG&A expenses [106]. - Net cash used in operating activities was $8.6 million for the three months ended March 31, 2022, compared to $8.1 million in the same period of 2021 [119]. - The company raised $11.2 million in net cash from financing activities during the three months ended March 31, 2022, primarily from a public offering [122]. Cost Management - The cost of revenue decreased by $352,000 to $95,000 for the three months ended March 31, 2022, primarily due to reductions in labor and overhead costs from cost-saving initiatives [99]. - Selling, general and administrative (SG&A) expenses decreased by $1.4 million to $2.3 million for the three months ended March 31, 2022, driven by reductions in stock-based compensation, legal expenses, and personnel costs [100]. Research and Development - Research and development (R&D) expenses increased by $365,000 to $3.1 million for the three months ended March 31, 2022, mainly due to higher costs associated with next-generation catheter engineering efforts and clinical study expenses [101]. - The company is conducting research on using DABRA-derived technology for lithotripsy to fracture calcium in arteries, with plans for a preclinical study in the near future [85]. Strategic Initiatives - The company is exploring strategic alternatives that may include financing for the atherectomy trial or a potential business combination, with a focus on maximizing stockholder value [86]. - The company is reviewing strategic alternatives that may include financing for clinical trials or potential business combinations [114]. Operational Challenges - The ongoing COVID-19 pandemic continues to impact the company's operations, particularly in terms of clinical trial enrollment and manufacturing delays [89]. - The company anticipates that the COVID-19 pandemic will continue to negatively impact its clinical trial enrollment and financing efforts [109]. - There is substantial doubt regarding the company's ability to continue as a going concern for the next twelve months, which may hinder its ability to secure financing or complete strategic transactions [88]. - There is substantial doubt regarding the company's ability to continue as a going concern for at least 12 months from the date of the financial statements [116]. Financial Position - As of March 31, 2022, the company had cash and cash equivalents of $17.7 million and an accumulated deficit of $183.8 million [107]. - As of March 31, 2022, the company had cash and cash equivalents of $17.7 million [128]. - The company's investment policy focuses on liquidity and capital preservation, avoiding trading or speculative investments [128]. - A hypothetical 10% relative change in interest rates would not have materially impacted the company's financial statements [128]. - The company does not believe inflation has materially affected its business or financial condition [129]. - Significant inflationary pressures could lead to higher costs that the company may not fully offset, potentially harming its operations [129]. Sales and Marketing - The company is currently not selling commercial products and is only providing catheters for its atherectomy clinical trial [91]. - The company has experienced a decrease in its DABRA sales force from 34 employees in June 2019 to 6 clinical specialists as of March 31, 2022 [109].
Catheter Precision(VTAK) - 2022 Q1 - Quarterly Report