Stereotaxis(STXS) - 2025 Q1 - Quarterly Report

Part I: Financial Information Item 1. Consolidated Financial Statements (unaudited) Unaudited Q1 2025 consolidated financial statements show increased revenue, a larger net loss, reduced cash and equity, and improved operating cash flow Consolidated Balance Sheets As of March 31, 2025, total assets slightly decreased, total liabilities increased, and total stockholders' equity significantly declined Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $10,601 | $12,217 | ($1,616) | | Inventories, net | $9,812 | $8,331 | $1,481 | | Total assets | $45,705 | $46,724 | ($1,019) | | Accounts payable | $6,544 | $5,668 | $876 | | Deferred revenue (current) | $8,163 | $6,804 | $1,359 | | Total liabilities | $37,529 | $35,292 | $2,237 | | Total stockholders' equity | $2,880 | $6,080 | ($3,200) | Consolidated Statements of Operations Q1 2025 operations show increased revenue driven by disposables, but higher costs and expenses resulted in a widened operating and net loss Consolidated Statement of Operations Summary (in thousands) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $7,472 | $6,880 | +8.6% | | Gross Margin | $4,064 | $3,966 | +2.5% | | Total Operating Expenses | $9,993 | $8,712 | +14.7% | | Operating Loss | ($5,929) | ($4,746) | +24.9% | | Net Loss | ($5,823) | ($4,507) | +29.2% | | Net Loss per Share (Basic & Diluted) | ($0.07) | ($0.06) | - | Consolidated Statements of Cash Flows Q1 2025 cash flows show improved operating cash usage due to working capital, no investing activities, minimal financing, and an overall decrease in cash balances Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($1,779) | ($2,346) | | Net cash provided by (used in) investing activities | $0 | $0 | | Net cash provided by financing activities | $32 | $30 | | Net decrease in cash | ($1,747) | ($2,316) | | Cash at end of period | $10,689 | $18,246 | Notes to Financial Statements The notes detail business operations, the APT acquisition, significant accounting policies, and key risks, highlighting the company's substantial accumulated deficit - The company designs, manufactures, and markets robotic systems (Robotic Magnetic Navigation) for endovascular interventions, primarily focusing on cardiac ablation procedures for arrhythmias[24][25] - On July 31, 2024, the company acquired Access Point Technologies EP, Inc. (APT) to gain in-house catheter development and manufacturing capabilities, involving upfront stock and contingent payments up to $24.0 million based on milestones[35][94][95] - The company obtained CE marking for its MAGiC catheter in Europe in Q1 2025 and is pursuing approvals in the U.S. and other regions, while the GenesisX RMN System also has CE Mark and awaits FDA clearance[38][151] - The company faces risks from new tariffs on imports from Mexico, Canada, and China, which could increase costs, alongside ongoing supply chain disruptions, inflation, and logistics delays[42][44][47] - As of March 31, 2025, the company has an accumulated deficit of approximately $567.5 million, with management believing existing cash is sufficient for the next twelve months but acknowledging the potential need for additional financing[52] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses Q1 2025 revenue growth driven by acquisition, declining gross margin, increased operating expenses leading to higher net loss, and liquidity amidst external risks Results of Operations Q1 2025 results show revenue growth from disposables offsetting systems decline, a decrease in gross margin percentage, and a significant increase in total operating expenses Revenue and Gross Margin Comparison (in millions) | Category | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Systems Revenue | $2.0 | $2.6 | -23.1% | | Disposables, Service & Accessories Revenue | $5.5 | $4.3 | +29.0% | | Total Revenue | $7.5 | $6.9 | +9.0% | | Gross Margin | $4.1 (54%) | $4.0 (58%) | +2.5% | Operating Expense Comparison (in millions) | Category | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Research & Development | $2.3 | $2.2 | +5.0% | | Sales & Marketing | $3.1 | $3.0 | +5.0% | | General & Administrative | $4.5 | $3.5 | +30.0% | | Total Operating Expenses | $9.9 | $8.7 | +14.7% | Liquidity and Capital Resources As of March 31, 2025, the company maintains $10.7 million in cash and $1.7 million in working capital with no debt, believing current liquidity is sufficient for the next year despite historical losses Liquidity Position (in millions) | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents (incl. restricted) | $10.7 | $12.4 | | Working Capital | $1.7 | $4.8 | - Net cash used in operating activities decreased to $1.8 million in Q1 2025 from $2.3 million in Q1 2024, driven by changes in working capital[190] - The company has no debt as of March 31, 2025[193] Critical Accounting Policies and Estimates This section details critical accounting policies requiring significant judgment, primarily focusing on revenue recognition for multi-element contracts and stock-based compensation valuation - Revenue from contracts with multiple performance obligations is allocated based on relative standalone selling prices, which may be estimated if not directly observable[171] - Stock-based compensation expense is determined using valuation models (Black-Scholes for time-based, Monte Carlo for market-based awards) and is amortized over the vesting period[180][181] Item 4. Controls and Procedures Management concluded disclosure controls were effective as of March 31, 2025, with no material changes to internal controls, while integrating controls of the acquired business - The CEO and CFO concluded that disclosure controls and procedures were effective as of the end of the quarter[196] - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[197] - The company is currently reviewing and integrating the internal control structure of the acquired business, Access Point Technologies EP, Inc[198] Part II: Other Information Item 1. Legal Proceedings The company reports no material legal proceedings, noting a contested minor vendor dispute regarding a $0.6 million UCC financing statement - The company states there are no material legal proceedings[200] - A vendor filed a UCC financing statement on inventory for approximately $0.6 million, which the company is fully contesting[130] Item 1A. Risk Factors This section formally states 'None,' indicating no new or materially changed risk factors are reported here compared to the prior annual filing - The report formally states 'None' for this item, meaning no new risk factors are disclosed in this section[201] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds The company reported no unregistered sales of equity securities during the period - There were no unregistered sales of equity securities[202] Item 6. Exhibits This section lists exhibits filed with the Form 10-Q, including corporate governance documents, CEO and CFO certifications, and XBRL data files - The filing includes certifications from the CEO and CFO pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[209] - Corporate governance documents and Inline XBRL files are included as exhibits[206][209]