Financial Data and Key Metrics Changes - Revenue for Q1 2019 was $1.7 million, an increase from $1 million in Q1 2018, with product sales of $894,000 and service revenue of $854,000 [24] - GAAP net loss attributable to common stockholders for Q1 2019 was $14.7 million or $1.16 per share, compared to a net loss of $2.7 million or $0.34 per share in Q1 2018 [28] - Adjusted EBITDA for Q1 2019 was negative $6.8 million, worsening from negative $2.1 million in the prior year [28] - Cash and cash equivalents were $55.1 million as of March 31, 2019, with $8.9 million used for operating activities in Q1 2019 [29] Business Line Data and Key Metrics Changes - Revenue from the vascular segment was $0.5 million in Q1 2019, up from $0.1 million in the prior year [25] - Revenue from the dermatology segment was $1.3 million in Q1 2019, an increase from $0.9 million in the prior year [25] - Total cost of revenues for Q1 2019 was $1.9 million, compared to $0.7 million in the prior year [26] Market Data and Key Metrics Changes - The addressable market for peripheral artery disease (PAD) in the U.S. is over $1 billion, with only 20% to 30% of patients currently being treated [15] - PAD affects approximately 17.5 million Americans, with 200,000 amputations performed annually due to untreated cases [15] Company Strategy and Development Direction - The company has shifted its commercial strategy to focus on long-term customer relationships and the DABRA excimer laser system for vascular disease treatments [12] - A total of 16 new usage agreements were signed in Q1 2019, bringing the total to 69 agreements as of March 31, 2019 [13] - The company is conducting a two-year registry to measure long-term results using DABRA and has submitted an IDE to the FDA for label expansion [18][19] Management's Comments on Operating Environment and Future Outlook - Management anticipates a greater impact on revenues in the second half of the year due to the transition in commercial strategy [12] - The company expects to see positive impacts from the new commercial strategy reflected in revenue starting in the second half of 2019 [23] - Management is optimistic about the DABRA system's potential to change vascular treatment paradigms and is focused on building shareholder value [34][35] Other Important Information - The company completed validation of its upgraded manufacturing process in March 2019, which had previously limited catheter production [14] - The DABRA system has shown promising clinical results, with success rates of 94% and 98% reported in recent studies [31] Q&A Session Summary Question: Progress on sales and new agreements - Management noted excitement about restarting evaluation accounts and the positive response from customers regarding the DABRA system [39][41] Question: Cash burn for the year - The company reported a cash burn of $8.9 million in Q1 2019 but did not provide guidance for future cash burn [51] Question: Customer response to the product - There has been no pushback on the product, and clinical data is helping to validate its effectiveness [54][55] Question: Sales force expansion - The company plans to increase the number of sales reps from 20 to approximately 30 by the end of 2019 [63] Question: Coronary study timing and size - A pilot study for coronary applications is expected to start within the next three quarters, with commercialization potentially in 2021 [70][75]
Catheter Precision(VTAK) - 2019 Q1 - Earnings Call Transcript