ClearPoint Neuro(US:CLPT)2022-11-08 22:21Financial Performance - Total revenue for the three months ended September 30, 2022, was $5,146, a 12.5% increase from $4,574 in the same period of 2021[21] - Product revenue for the nine months ended September 30, 2022, reached $9,750, up 10% from $8,863 in 2021[21] - Service and other revenue for the nine months ended September 30, 2022, increased to $5,627, a 78.5% rise from $3,154 in 2021[21] - Gross profit for the nine months ended September 30, 2022, was $10,215, compared to $7,939 in 2021, reflecting a 28.7% increase[21] - Total revenue for the three months ended September 30, 2022, was $5,146,000, an increase of 12.5% compared to $4,574,000 for the same period in 2021[83] - For the nine months ended September 30, 2022, total revenue reached $15,377,000, up 28.5% from $12,017,000 in the prior year[86] - Functional neurosurgery navigation and therapy revenue for the three months ended September 30, 2022, was $2,420,000, a 12.4% increase from $2,154,000 in 2021[83] - Biologics and drug delivery revenue for the three months ended September 30, 2022, was $2,246,000, up 9.2% from $2,057,000 in the same period last year[83] - Capital equipment and software revenue for the three months ended September 30, 2022, was $480,000, a 32.3% increase from $363,000 in 2021[83] Losses and Expenses - Operating loss for the nine months ended September 30, 2022, was $(11,863), compared to $(9,392) in 2021, indicating a worsening of 26.3%[21] - Net loss for the nine months ended September 30, 2022, was $(12,050), compared to $(10,261) in 2021, representing a 17.4% increase in losses[21] - The company reported a net loss of $12.05 million for the nine months ended September 30, 2022, compared to a net loss of $10.26 million for the same period in 2021[31] - Cash flows from operating activities resulted in a net cash outflow of $13.1 million for the nine months ended September 30, 2022, compared to $9.145 million for the same period in 2021[31] - The company incurred $22.48 million in cash outflows from investing activities for the nine months ended September 30, 2022[31] - Share-based compensation expense for Q3 2022 was $1.175 million, up from $586,000 in Q3 2021, representing a 100.8% increase[117] Assets and Liabilities - Cash and cash equivalents decreased to $18,712 as of September 30, 2022, from $54,109 as of December 31, 2021[17] - Total current assets decreased to $53,814 as of September 30, 2022, from $61,892 as of December 31, 2021[17] - Total liabilities increased to $17,860 as of September 30, 2022, from $16,794 as of December 31, 2021[17] - Total stockholders' equity decreased to $39,878 as of September 30, 2022, from $48,787 as of December 31, 2021[17] - As of September 30, 2022, the company had approximately $9.9 million in bank balances exceeding insured limits[74] - The company had an outstanding note payable of $10 million as of September 30, 2022, which may be convertible to common stock at a price of $6.00 per share[97] - As of September 30, 2022, there were 1,399,473 stock options outstanding, with a weighted average exercise price of $8.70 and an intrinsic value of $7.251 million[120] Inventory and Receivables - The company’s accounts receivable decreased by $982,000 during the nine months ended September 30, 2022[31] - The company’s inventory decreased by $3.318 million during the nine months ended September 30, 2022[31] - Inventory as of September 30, 2022, totaled $8,769,000, an increase from $5,457,000 as of December 31, 2021[96] - Two customers represented 16% and 15% of accounts receivable as of September 30, 2022, indicating significant concentration risk[75] - A related pharmaceutical customer accounted for 14% and 18% of total sales in the three-month periods ended September 30, 2022 and 2021, respectively[76] - The allowance for doubtful accounts was $0.2 million as of September 30, 2022, down from $0.3 million at December 31, 2021[77] Revenue Recognition and Accounting - The company recognizes revenue from capital equipment and software sales upon receipt of an executed purchase agreement or purchase order following customer evaluation periods[57] - Revenue from service agreements for ClearPoint capital equipment is recognized ratably over the term of the service agreement, typically ranging from one to three years[65] - The company operates primarily in the U.S. market, with payment terms generally ranging from 30 to 60 days after invoice receipt[68] - The company adopted new accounting standards effective January 1, 2021, impacting the accounting for convertible debt instruments[81] - Certain expenses previously classified as sales and marketing and research and development have been reclassified to cost of revenue for the three and nine months ended September 30, 2022[82] Stock and Compensation - Total unrecognized compensation expense related to stock options and restricted stock as of September 30, 2022, was $1.6 million and $6.0 million, respectively, expected to be recognized over 2.0 and 2.3 years[117] - Restricted stock activity showed 655,361 shares outstanding as of September 30, 2022, with a weighted average grant date fair value of $11.27[121] - The Company has a total of 400,000 shares available under the Employee Stock Purchase Plan (ESPP), with 26,354 shares purchased at an average price of $9.86 during the six months ended June 30, 2022[122] - As of September 30, 2022, 36,554 warrants were outstanding with a weighted average exercise price of $16.23[126] Facility and Lease - The Company entered into a lease agreement for a 19,462 square foot facility with a base rent of $36,977.80 per month, subject to annual increases of 3.5%[127] - The outstanding First Closing Note of $10 million bears interest at 5.6% as of September 30, 2022, with potential additional annual interest expense of $0.3 million to $0.4 million if LIBOR increases by 1% to 2%[190] Foreign Currency and Risk - The Company has not recorded significant sales in currencies other than U.S. dollars and does not currently engage in hedging to reduce foreign currency risks[191]