ClearPoint Neuro(US:CLPT)2021-11-09 23:20Revenue Performance - Total revenue for September 2021 was $4,574,000, representing a 30% increase from $3,519,000 in September 2020[20] - Product revenue increased to $3,338,000 in September 2021, up from $2,371,000 in September 2020, marking a 40.8% growth[20] - Total revenue for the three months ended September 30, 2021, was $4.574 million, an increase of 30% compared to $3.519 million for the same period in 2020[75] - For the nine months ended September 30, 2021, total revenue reached $12.017 million, up 32% from $9.113 million in the prior year[75] - Revenue from functional neurosurgery navigation and therapy disposable products was $2.004 million for Q3 2021, compared to $1.840 million in Q3 2020, reflecting a growth of 9%[75] - The company recognized approximately $0.7 million and $2.1 million in revenue for the three and nine months ended September 30, 2021, respectively, from a product development project with a customer[82] Profit and Loss - Gross profit for the quarter was $3,088,000, compared to $2,616,000 in the same quarter last year, reflecting an 18% increase[20] - The net loss for the quarter was $3,980,000, compared to a net loss of $1,484,000 in the same quarter last year, representing a 168% increase in losses[20] - The net loss for the nine months ended September 30, 2021, was $10.261 million, compared to a net loss of $5.200 million for the same period in 2020, representing a 97% increase in losses[26] - The company reported an operating loss of $3,804,000 for the quarter, compared to an operating loss of $1,272,000 in the same quarter last year[20] Assets and Liabilities - Total assets as of September 30, 2021, were $68,702,000, up from $29,518,000 at the end of 2020, showing a 132% increase[17] - Total liabilities decreased to $24,582,000 as of September 30, 2021, down from $27,141,000 at the end of 2020[17] - Cash and cash equivalents increased to $57,651,000 in September 2021, compared to $20,099,000 at the end of 2020, reflecting a 187% increase[17] - Cash and cash equivalents at the end of the period were $57.651 million, up from $14.665 million at the end of September 30, 2020, indicating a significant increase of 292%[26] - The total accumulated deficit as of September 30, 2021, was $129.783 million, reflecting an increase from $117.940 million as of September 30, 2020[26] Research and Development - Research and development costs rose to $2,630,000 in September 2021, significantly higher than $1,143,000 in September 2020, indicating a 130% increase[20] Financing and Capital - The company raised $46.785 million from the public offering of common stock during the nine months ended September 30, 2021[26] - The Company completed a public offering of 2,127,660 shares of common stock in February 2021, generating net proceeds of approximately $46.8 million after expenses[42] - The company has financed operations mainly through equity sales and convertible notes, with a total of $17.5 million in secured convertible notes issued in January 2020[37] - The company had $17.5 million in outstanding principal amount of 2020 Secured Convertible Notes as of September 30, 2021[90] Customer and Revenue Recognition - One customer accounted for 18% of total sales in the three-month period ended September 30, 2021, highlighting reliance on key customers[68] - The Company recognized revenue primarily from product sales, service, and consultation, with revenue from functional neurosurgery navigation products recognized at the point of delivery[50][51] - Contract liabilities related to capital equipment and software service fees are classified as deferred revenue, indicating future revenue recognition[77] Accounting and Compliance - The Company adopted new accounting standards on January 1, 2021, resulting in a $3.1 million reduction in additional paid-in capital[28] - The Company adopted a new accounting standard effective January 1, 2021, impacting the accounting for convertible instruments, which may affect future financial reporting[71] Risks and Challenges - The Company is subject to risks common in the medical device industry, including dependence on key suppliers and technological innovations, which may impact future operations[70] - The Company has a reserve for doubtful accounts of $0.2 million as of September 30, 2021, indicating potential credit risk[69] Stock Options and Employee Plans - As of September 30, 2021, there were 1,352,111 stock options outstanding with a weighted average exercise price of $9.75, and an intrinsic value of $15.3 million[115] - The company has unrecognized compensation expense of approximately $4.8 million related to outstanding stock options and shares of restricted stock, expected to be recognized over a weighted average period of 2.3 years[116] - The company has 400,000 shares available for issuance under the Employee Stock Purchase Plan (ESPP), which commenced in July 2021[117] Cash Flow and Operations - The company reported a net cash flow from operating activities of $(9.145) million for the nine months ended September 30, 2021, compared to $(5.406) million for the same period in 2020[26] - The Company incurred a cumulative deficit of approximately $130 million as of September 30, 2021, with cash used from operations amounting to $9.1 million for the nine months ended September 30, 2021[36] Inventory and Receivables - Inventory as of September 30, 2021, totaled $4.462 million, an increase from $3.827 million at December 31, 2020[89] - The company experienced a decrease in accounts receivable by $848,000 during the nine months ended September 30, 2021[26] - The company’s accounts receivable from a key customer amounted to approximately $0.1 million as of September 30, 2021[82]