Financial Data and Key Metrics Changes - Net revenue for Q3 2020 was $0.9 million, down from $1.9 million in Q3 2019, with product sales decreasing from $1.1 million to $0.2 million and service revenue slightly decreasing from $0.8 million to $0.7 million [22] - Gross loss decreased to $504,000 in Q3 2020 from $517,000 in Q3 2019 [23] - GAAP net loss for Q3 2020 was $7.8 million or $0.13 per share, compared to a net loss of $17.4 million or $1.30 per share in the prior year [25] - Adjusted EBITDA improved to negative $6.2 million in Q3 2020 from negative $9.9 million in Q3 2019 [26] Business Line Data and Key Metrics Changes - Revenue from the vascular segment was $0.1 million in Q3 2020, down from $0.2 million in the prior year [22] - Dermatology segment revenue was $0.8 million in Q3 2020, down from $1.7 million in the prior year, but showed a 20% growth in product revenue compared to Q2 2020 [20][23] Market Data and Key Metrics Changes - The dermatology business has seen a recovery with many offices reopening, achieving 70% to 90% of pre-COVID procedure volumes [48] - The company has experienced increased activity in clinical sites, enrolling an additional 12 subjects for a total of 13 subjects in the atherectomy indication clinical trial [18] Company Strategy and Development Direction - The company is focused on quality improvements and has completed 115 out of 116 items in its quality improvement plan [9] - Engineering efforts are aimed at extending the shelf life of future catheters and developing next-generation products, including a guidewire-compatible catheter [12][15] - The company is navigating the challenges posed by COVID-19 while continuing to invest in strategic initiatives and reducing spending where necessary [21][27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the progress made in engineering and clinical trials despite the challenges posed by the COVID-19 pandemic [29] - The company is committed to its mission of saving lives and limbs while operating in large and growing markets [29] Other Important Information - The company has reduced its DABRA sales force significantly from 34 employees to 5 due to the pandemic's impact [21] - The manufacturing facility has remained operational throughout the pandemic, with minor delays in receiving parts but no material impact on key engineering efforts [27] Q&A Session Summary Question: Shelf life issue with the catheter - Management is focused on two identified issues affecting shelf life and believes they have made significant progress in addressing them [32] Question: Next-generation catheter technology - No additional clinical data is needed for the braided over jacket catheter, and regulatory filings will be made without it [35] Question: Timeline for IDE trial and enrollment - The company is hopeful to activate two additional sites within the next 90 days, pending IRB approvals [46] Question: Dermatology business recovery - The dermatology offices are reopening, and the company has seen a 20% increase in product revenue from Q2 to Q3, predominantly in the U.S. [49] Question: Reverse split approval - The board is expected to approve the range for the reverse split shortly [50]
Catheter Precision(VTAK) - 2020 Q4 - Earnings Call Transcript