
Financial Data and Key Metrics Changes - Total revenue for Q2 2021 was $3.4 million, an increase of $0.9 million or 38% compared to $2.5 million in Q2 2020 [7] - Gross margin for Q2 2021 was 67%, slightly down from 68% in Q2 2020 [11] - Cash and cash equivalents totaled $61.5 million as of June 30, 2021, compared to $20.1 million at the end of 2020, primarily due to a public offering [15] Business Line Data and Key Metrics Changes - Functional neurosurgery navigation therapy revenue increased 74% to $1.9 million in Q2 2021 from $1.1 million in Q2 2020, driven by the resumption of elective surgical procedures [8] - Biologics and drug delivery revenue rose 19% to $1.4 million in Q2 2021 from $1.2 million in Q2 2020, attributed to the re-establishment of clinical trial timelines [9] - Capital equipment and software revenue remained stable at $0.2 million for both Q2 2021 and Q2 2020, affected by capital headwinds and delays [10] Market Data and Key Metrics Changes - The company reported a record of 249 procedures covered in Q2 2021, a 98% increase from 126 procedures in the same quarter last year [18] - The company noted potential disruptions in elective procedures due to the COVID Delta variant, particularly in states like Texas and Florida [19] Company Strategy and Development Direction - The company is focused on four pillars of growth: functional neurosurgery navigation, biologics and drug delivery, therapeutic products, and achieving global scale [6] - Recent partnerships with Blackrock Neurotech and adeor are aimed at enhancing the operating room capabilities and expanding product offerings [17][28] - The company plans to continue expanding its biologics and drug delivery partnerships, with a goal of achieving initial commercial gene therapy approval in 2022 [35] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of elective procedures and expects significant revenue growth in the second half of 2021 [44] - The company reaffirmed its revenue guidance for the year, projecting between $16 million and $17.5 million [41] - Management acknowledged challenges due to the COVID Delta variant but noted that most hospitals have resumed operations [84] Other Important Information - Research and development costs increased significantly to $2.1 million in Q2 2021, up 177% from $0.8 million in Q2 2020 [12] - The company has added 50 new employees to support product development and global expansion efforts [15] Q&A Session Summary Question: What are the drivers for sequential growth through year-end? - Management expects significant revenue growth in the third quarter, citing replenishment orders and a record month in July for biologics and case volume [44] Question: How will the Array product be implemented across established sites? - Management believes the Array system will benefit both existing and new customers, particularly for laser ablation procedures [45][46] Question: Update on the biologic approval timeline? - Management confirmed that a partner is still expecting to submit their BLA in 2021, with potential approval in 2022 [48] Question: Progress on site activation in Europe? - Management reported that installations have resumed in Europe, with expectations for additional installations by year-end [55] Question: Direct-to-patient marketing for asleep DBS procedures? - Management is making progress in educating neurologists on the ClearPoint procedure and its applications [59] Question: Interest in new partnerships for global expansion? - Management noted increased interest from European pharmaceutical partners and plans for cautious expansion into Asia [81] Question: Status of clinical trials and new initiations? - Management indicated that most hospitals have resumed trials, with ongoing enrollment expected in the second half of the year [86]