ClearPoint Neuro(US:CLPT)2019-11-13 13:47Financial Performance - Total revenues for September 2019 reached $2,927,466, a 62% increase from $1,807,042 in September 2018[20] - Product revenues were $2,594,428, up from $1,739,804, representing a 49% year-over-year growth[20] - Net loss for September 2019 was $1,122,968, compared to a net loss of $1,428,076 in September 2018, showing a 21% improvement[20] - Total revenue for the nine months ended September 30, 2019, was $8,006,382, representing a 57.0% increase from $5,076,744 in the same period of 2018[68] - Product revenue for the nine months ended September 30, 2019, was $6,952,575, up 48.3% from $4,691,002 in 2018[68] - Service revenue for the nine months ended September 30, 2019, was $1,053,807, an increase of 173.3% compared to $385,742 in 2018[68] - Total revenues for the three months ended September 30, 2019, were $2.9 million, an increase of 62% compared to $1.8 million for the same period in 2018[119] - Product revenues related to the ClearPoint system were approximately $2.6 million for the three months ended September 30, 2019, representing a 49% increase from $1.7 million in the same period in 2018[121] - Functional neurosurgery revenue increased 28% to $1.9 million for the three months ended September 30, 2019, from $1.4 million for the same period in 2018[120] - Total revenues for the nine months ended September 30, 2019, were $8.0 million, an increase of $2.9 million, or 58%, compared to $5.1 million for the same period in 2018[132] Assets and Liabilities - Total current assets increased to $11,908,776 from $6,654,689, reflecting a 79% growth[17] - Total assets rose to $13,388,798, up from $7,856,833, marking a 70% increase[17] - Total liabilities increased to $7,380,842 from $6,345,831, a rise of 16%[17] - Cash and cash equivalents improved to $6,235,168, compared to $3,101,133, a 101% increase[17] - The company reported cash and cash equivalents of $6,235,168 at the end of the period, up from $3,710,947 at the end of the previous year, reflecting an increase of approximately 68.1%[28] - As of September 30, 2019, the company had approximately $280,000 in bank balances exceeding insured limits, indicating a concentration risk in cash and cash equivalents[61] Research and Development - Research and development costs for September 2019 were $761,881, up from $617,241, indicating a 23% increase[20] - Research and development costs rose 12% to $2.0 million for the nine months ended September 30, 2019, compared to $1.8 million for the same period in 2018[139] Operating Expenses - Operating loss for September 2019 was $910,529, an improvement from $1,206,190 in September 2018, reflecting a 25% reduction[20] - Sales and marketing expenses increased by 39% to $1,063,143 for the three months ended September 30, 2019, compared to $764,599 for the same period in 2018[121] - Sales and marketing expenses increased 22% to $3.2 million for the nine months ended September 30, 2019, compared to $2.7 million for the same period in 2018[140] - General and administrative expenses decreased 4% to $3.0 million for the nine months ended September 30, 2019, compared to $3.1 million for the same period in 2018[141] Cash Flow - Net cash flows from operating activities were $(2,383,705) for the nine months ended September 30, 2019, compared to $(4,048,210) for the same period in 2018, indicating a significant improvement in cash flow[28] - Net cash used in operating activities was $2.4 million for the nine months ended September 30, 2019, compared to $4.0 million for the same period in 2018[145] - Net cash flows from financing activities for the nine months ended September 30, 2019, included net proceeds of $7.4 million from the sale of shares under the 2019 PIPE[152] Future Outlook - The company plans to increase revenues from sales of the ClearPoint System and related disposable products, anticipating modest growth in operating expenses compared to revenue growth[37] - The company anticipates financing activities to support repayment of debt obligations maturing in 2020[37] - Future plans anticipate revenue increases from sales of the ClearPoint system and related disposable products, with modest growth in operating expenses[144] - The company has not achieved profitability to date and may continue to incur net losses while expanding the commercialization of its ClearPoint system products and developing the ClearTrace system[154] - Future capital requirements are uncertain and will depend on factors such as market acceptance of ClearPoint products, ongoing product development costs, and the timing of regulatory approvals[155] Risk Factors - The company has disclosed various risk factors that may affect its future financial condition and results of operations, with no material changes since its 2018 Form 10-K[167][168] - The company is primarily exposed to interest rate risk, with investments in short-term bank deposits and institutional money market funds, aiming to preserve principal while maximizing income[159] - There have been no recorded product sales in currencies other than U.S. dollars, and the company currently has no material exposure to foreign currency risks[160] Internal Controls - As of September 30, 2019, the company's disclosure controls and procedures were evaluated as effective by its principal executive and financial officers[161] - There were no changes in internal control over financial reporting that materially affected the company during the quarter ended September 30, 2019[162]