Financial Data and Key Metrics Changes - Net revenue for Q1 2020 was $1.4 million, down from $1.7 million in Q1 2019, with product sales decreasing from $0.9 million to $0.6 million and service revenue remaining stable at $0.8 million [31] - Gross profit margin for Q1 2020 was negative 15%, compared to a negative margin in Q1 2019 [32] - GAAP net loss for Q1 2020 was $7.7 million or $0.56 per share, an improvement from a net loss of $14.7 million or $1.16 per share in the prior year [34] - Cash, cash equivalents, and short-term investments as of March 31, 2020, were $23.4 million, with a cash burn of $7.0 million for Q1 2020 [35] Business Line Data and Key Metrics Changes - Revenue from the vascular segment for Q1 2020 was $0.1 million, down from $0.5 million in the prior year [31] - Revenue from the dermatology segment remained stable at $1.3 million for both Q1 2020 and Q1 2019 [31] Market Data and Key Metrics Changes - The vascular business has seen a reduction in cases starting in March 2020 due to COVID-19, with a focus on severe cases to prevent amputations [20] - The dermatology business has been significantly impacted by COVID-19, leading to a reduction in laser replacements and sales [21] Company Strategy and Development Direction - The company is focusing on extending the shelf life of DABRA catheters and enhancing product features to penetrate the vascular market [42][70] - A comprehensive quality improvement plan has been initiated to address weaknesses in processes and procedures [23] - The company plans to evaluate the dermatology business opportunity and develop a capital-efficient strategy for growth in the U.S. and select markets [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the significant uncertainty due to COVID-19 and its impact on operations and financial results [5] - The company is optimistic about resuming elective surgeries and believes it will help with patient enrollment in clinical studies [63] - Future revenue and gross margin are expected to be negatively impacted in the short term due to reduced sales force and procedural use of products [36] Other Important Information - The company received a $2 million loan under the Paycheck Protection Program, which may be forgiven if used for eligible expenses [37] - Legal fees have increased significantly due to ongoing investigations, impacting overall expenses [26] Q&A Session Summary Question: What is the focus for the company moving forward? - The primary focus is on the vascular side, particularly on extending the shelf life of catheters and supporting the atherectomy study [42][44] Question: What is the timeline for pushing the vascular business? - Engineering work is expected to be completed and FDA clearance obtained in 2021, with enrollment in the atherectomy study anticipated in the first half of 2021 [48] Question: What are the plans for capital and burn rate? - Cash burn has decreased significantly, and the company plans to raise capital, although the exact timing is uncertain [50] Question: Are there any key positions that need to be filled? - Currently, there are no key positions needed, but there is a focus on improving project management processes [52] Question: How is the company addressing the shelf life issue? - The company is approaching the shelf life issue methodically, with a focus on understanding the root causes and implementing solutions [56][57] Question: What is the strategy for the dermatology business? - The company is evaluating both domestic and international opportunities for growth in the dermatology space [60] Question: What is the status of the atherectomy trial? - The company is optimistic about qualifying additional sites for the trial and has received FDA approval to enroll a broader range of patients [62][64]
Catheter Precision(VTAK) - 2020 Q1 - Earnings Call Transcript