ClearPoint Neuro(US:CLPT)2021-05-11 20:10Revenue Performance - Total revenue for the three months ended March 31, 2021, was $4,030,000, representing a 29.3% increase from $3,116,000 for the same period in 2020[22] - Product revenue increased to $3,162,000, up 45.0% from $2,179,000 in the prior year[22] - Service and other revenue decreased to $868,000, down 7.4% from $937,000 in the same period last year[22] - Revenue from functional neurosurgery navigation and therapy disposable products was $1,917,000 in Q1 2021, up from $1,742,000 in Q1 2020, indicating an increase of about 10.0%[75] - Biologics and drug delivery revenue totaled $1,660,000 in Q1 2021, compared to $1,029,000 in Q1 2020, reflecting a significant increase of approximately 61.3%[75] - Capital equipment and software revenue reached $453,000 in Q1 2021, up from $345,000 in Q1 2020, marking an increase of about 31.3%[75] Financial Losses - Operating loss for the three months ended March 31, 2021, was $(2,181,000), compared to $(1,209,000) for the same period in 2020[22] - Net loss for the three months ended March 31, 2021, was $(2,538,000), compared to $(2,055,000) in the prior year[22] - The net loss for the three months ended March 31, 2021, was $2.538 million, compared to a net loss of $2.055 million for the same period in 2020[28] - Cash flows from operating activities resulted in a net cash outflow of $2.131 million for the three months ended March 31, 2021, compared to a net cash outflow of $2.331 million for the same period in 2020[28] - The cumulative deficit at March 31, 2021, was $122 million, reflecting ongoing net losses since inception[37] Cash and Assets - Cash and cash equivalents increased to $64,858,000 as of March 31, 2021, from $20,099,000 at December 31, 2020[19] - Total assets as of March 31, 2021, were $74,263,000, significantly up from $29,518,000 at December 31, 2020[19] - The company reported cash and cash equivalents of $64.858 million at the end of the period, up from $16.976 million at the end of the previous year[28] - As of March 31, 2021, the company had approximately $60 million in bank balances exceeding insured limits, indicating a concentration risk in cash and cash equivalents[67] Liabilities and Debt - Total liabilities increased to $30,281,000 as of March 31, 2021, compared to $27,141,000 at December 31, 2020[19] - As of March 31, 2021, the Company had $17.5 million of principal outstanding under the 2020 Secured Notes, with a one-percent increase in one-month LIBOR resulting in an annualized increase in interest expense of $0.175 million[168] - Scheduled principal payments for notes payable as of March 31, 2021, totaled $25.1 million, net of unamortized financing costs and discounts[97] - The Company repaid the 2010 Secured Notes in full, amounting to approximately $2.8 million, along with accrued interest of approximately $0.9 million[96] Stock and Compensation - Weighted average shares outstanding for the three months ended March 31, 2021, were 18,852,828, compared to 15,438,276 for the same period in 2020[22] - The Company had outstanding stock options totaling 1,389,192 shares with a weighted average exercise price of $8.46 and an intrinsic value of $21.5 million[109] - The Company has unrecognized compensation expense of approximately $1.8 million related to outstanding stock options and shares of restricted stock, expected to be recognized over a weighted average period of 2.16 years[110] - The Company has 1,005,111 shares remaining available for grants under the 2013 Incentive Compensation Plan as of March 31, 2021[106] Operational Impact - The company has been impacted by COVID-19, which has led to a reduction in elective surgical procedures, historically representing about 80% of the procedures using its ClearPoint system[35] - The company has sufficient cash and cash equivalent balances to support operations for at least the next twelve months[44] Accounting and Reporting - The company adopted a new accounting standard effective January 1, 2021, which may affect the accounting for convertible instruments and contracts in its own equity[71] - Remaining performance obligations related to capital equipment and software-related service agreements amounted to approximately $0.6 million at March 31, 2021, expected to be recognized within the next three years[84] - The company recognized approximately $0.1 million in capital equipment and software-related service revenue during Q1 2021, which was previously included in deferred revenue[77] Financing Activities - The company raised approximately $46.785 million from a public offering of common stock in February 2021[43] - The Company completed a public offering of 2,127,660 shares at a price of $23.50 per share, resulting in net proceeds of approximately $46.8 million after deducting underwriting discounts and commissions[102][103] - The company incurred $0.1 million in financing costs related to the issuance of the 2020 Secured Notes, which were included in accounts payable[29] Depreciation and Receivables - The company recorded depreciation and amortization of $15,000 for the three months ended March 31, 2021, down from $58,000 in the same period of 2020[28] - The company experienced a decrease in accounts receivable by $123,000 during the reporting period[28] - One customer accounted for 14% of accounts receivable at March 31, 2021, highlighting a significant concentration risk in customer accounts[68]