Stereotaxis(US:STXS)2022-05-11 13:05Impact of COVID-19 - Stereotaxis reported a significant decline in procedures during the COVID-19 pandemic, with U.S. and European procedures dropping to approximately 70% of pre-pandemic levels at the peak [126]. - The ongoing impact of the pandemic is expected to cause significant disruptions to procedure volumes and system placements in 2022 [131]. - The company anticipates challenges in supply chain and logistics due to the pandemic, affecting its ability to source parts and ship products [130]. Financial Performance - Revenue decreased from $8.6 million for the three months ended March 31, 2021, to $7.0 million for the three months ended March 31, 2022, a decrease of 18% [157]. - Revenue from system sales decreased to $1.6 million for the three months ended March 31, 2022, from $2.6 million for the same period in 2021 [157]. - Cost of revenue decreased from $2.6 million for the three months ended March 31, 2021, to $2.1 million for the same period in 2022, a decrease of approximately 19% [158]. - General and administrative expenses increased from $2.2 million for the three months ended March 31, 2021, to $3.6 million for the same period in 2022, an increase of approximately 62% [160]. - Cash flow used in operating activities was approximately $2.2 million for the three months ended March 31, 2022, compared to $0.3 million for the same period in 2021 [163]. - As of March 31, 2022, the Company had $36.9 million of cash and cash equivalents, inclusive of restricted cash [163]. Product and Technology - The Genesis RMN System and Odyssey Solution are key products designed to improve procedure efficiency and reduce x-ray exposure during cardiac interventions [120][121]. - The company has treated over 100,000 arrhythmia patients globally using its robotic technology, supported by over 400 clinical publications [118]. - Stereotaxis has received regulatory clearances for the Genesis RMN System in the U.S. and Europe, and is pursuing additional registrations in other countries [124]. Revenue Recognition - The company generates revenue from initial system sales, recurring sales of disposable devices, and royalties from co-developed catheters [134]. - Revenue from disposable products is recognized upon shipment or delivery, while system sales revenue is recognized upon customer acceptance [140][139]. Expenses and Liabilities - Research and development expenses remained consistent at $2.4 million for the three months ended March 31, 2021, and 2022 [159]. - The Company recorded a right-of-use asset and lease liability of $5.9 million related to a new office lease agreement [151]. - The Company recognized a net gain from debt extinguishment of approximately $2.2 million upon forgiveness of the Paycheck Protection Program loan [167]. Strategic Relationships - Strategic relationships with technology leaders are critical for the commercialization of Stereotaxis' robotic systems and devices [125].