Stereotaxis Reports 2017 Fourth Quarter and Full Year Financial Results
- 7% year-over-year growth in fourth quarter global procedures and recurring revenue
- Substantial progress in delineating and initiating strategic innovation plans
- Increasing quantity and quality of peer-reviewed clinical validation
- Strong financial position to reach profitability without the need for additional financings
- Conference call today at 10:00 a.m. Eastern Time
“I am proud of our accomplishments in 2017 in three key areas: financial discipline, improved commercial execution, and reinvigorating Stereotaxis’ commitment to innovation and collaboration,” said
“Our commercial focus remains supporting electrophysiologists build successful robotic ablation practices. We have a well-defined, multipronged strategy to do so. Highlights of the past year include support for the successful establishment of a global physician
“Our commitment to significant innovation, through internal efforts and improved collaboration, is crucial. We have identified and are advancing a strategic innovation plan that addresses each of the five core technologies utilized in a robotic cardiac ablation procedure and is designed to improve patient care, physician choice, and technology availability. While this progress is not yet visible, and will take time to implement, we are confident the strategy is clinically and commercially sound. Additional details will be provided as appropriate.”
2017 Fourth Quarter and Full Year Financial Results
Revenue for the fourth quarter of 2017 totaled $7.6 million, up from
In the fourth quarter of 2017,
Operating expenses in the fourth quarter were $5.9 million, down 20% from $7.4 million in the prior year quarter. The reduction in operating expenses continues to reflect the year-over-year impact of lower executive compensation and more efficient management of expenses across the organization, but does not represent any material changes in the organization’s personnel, infrastructure or capabilities. Operating loss in the fourth quarter was $(3.7) million, compared to $(2.1) million in the prior year fourth quarter. Excluding the non-cash inventory-related charge, the company would have shown an operating profit of
Cash Balance and Liquidity
At December 31, 2017, Stereotaxis had cash and cash equivalents of $3.7 million, no debt, and $2.7 million in unused borrowing capacity on its revolving credit facility, for total liquidity of $6.4 million. In a separate press release this morning
Full Year 2018 Expectations
Conference Call and Webcast
About
This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe”, "estimate”, "project”, "expect" or similar expressions. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, the Company's ability to raise additional capital on a timely basis and on terms that are acceptable, its ability to continue to manage expenses and cash burn rate at sustainable levels, its ability to continue to work with lenders to extend, repay or refinance indebtedness, or to obtain additional financing, in either case on acceptable terms, continued acceptance of the Company's products in the marketplace, the effect of global economic conditions on the ability and willingness of customers to purchase its systems and the timing of such purchases, competitive factors, changes resulting from healthcare reform in
Stereotaxis Contacts:
Chairman and Chief Executive Officer
Martin C. Stammer
Chief Financial Officer
314-678-6100
investors@stereotaxis.com
STEREOTAXIS, INC. | |||||||||||||||
STATEMENTS OF OPERATIONS | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended December 31, |
Twelve Months Ended December 31, |
||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenue: | |||||||||||||||
Systems | $ | 630,927 | $ | 810,987 | $ | 4,275,798 | $ | 5,776,843 | |||||||
Disposables, service and accessories | 6,924,740 | 6,497,033 | 26,868,302 | 26,387,273 | |||||||||||
Total revenue | 7,555,667 | 7,308,020 | 31,144,100 | 32,164,116 | |||||||||||
Cost of revenue: | |||||||||||||||
Systems | 4,169,883 | 935,685 | 6,199,643 | 3,660,012 | |||||||||||
Disposables, service and accessories | 1,204,116 | 1,063,771 | 4,554,596 | 3,869,321 | |||||||||||
Total cost of revenue | 5,373,999 | 1,999,456 | 10,754,239 | 7,529,333 | |||||||||||
Gross margin | 2,181,668 | 5,308,564 | 20,389,861 | 24,634,783 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 1,161,490 | 1,298,013 | 4,760,806 | 5,487,609 | |||||||||||
Sales and marketing | 2,975,800 | 3,725,385 | 13,039,499 | 15,228,193 | |||||||||||
General and administrative | 1,794,133 | 2,410,988 | 8,509,153 | 10,345,338 | |||||||||||
Total operating expenses | 5,931,423 | 7,434,386 | 26,309,458 | 31,061,140 | |||||||||||
Operating loss | (3,749,755 | ) | (2,125,822 | ) | (5,919,597 | ) | (6,426,357 | ) | |||||||
Other income (expense) | 1,241,510 | 7,676,700 | 212,031 | (2,009,150 | ) | ||||||||||
Interest expense (net) | (44,509 | ) | (16,943 | ) | (179,844 | ) | (2,483,384 | ) | |||||||
Gain on extinguishment of debt | - | - | - | 5,632,171 | |||||||||||
Net loss | $ | (2,552,754 | ) | $ | 5,533,935 | $ | (5,887,410 | ) | $ | (5,286,720 | ) | ||||
Deemed dividend on convertible preferred stock | - | (7,926 | ) | - | (6,145,402 | ) | |||||||||
Cumulative dividend on convertible preferred stock | (361,447 | ) | (368,152 | ) | (1,432,259 | ) | (368,152 | ) | |||||||
Net income attributable to convertible preferred stock | - | (3,242,534 | ) | - | - | ||||||||||
Net income (loss) attributable to common stockholders | $ | (2,914,201 | ) | $ | 1,915,323 | $ | (7,319,669 | ) | $ | (11,800,274 | ) | ||||
Net income (loss) per share attributed to common stockholder: |
|||||||||||||||
Basic | $ | (0.13 | ) | $ | 0.09 | $ | (0.32 | ) | $ | (0.54 | ) | ||||
Diluted | $ | (0.13 | ) | $ | 0.09 | $ | (0.32 | ) | $ | (0.54 | ) | ||||
Weighted average number of common shares and equivalents: |
|||||||||||||||
Basic | 22,800,459 | 21,953,879 | 22,614,248 | 21,807,634 | |||||||||||
Diluted | 22,800,459 | 21,962,462 | 22,614,248 | 21,807,634 | |||||||||||
STEREOTAXIS, INC. | |||||||
BALANCE SHEETS | |||||||
December 31, 2017 |
December 31, 2016 |
||||||
(Unaudited) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 3,686,302 | $ | 8,501,392 | |||
Accounts receivable, net of allowance of $361,350 and $379,817 in 2017 and 2016, respectively |
4,287,255 | 4,665,959 | |||||
Inventories, net | 1,146,971 | 5,381,103 | |||||
Prepaid expenses and other current assets | 750,085 | 855,295 | |||||
Total current assets | 9,870,613 | 19,403,749 | |||||
Property and equipment, net | 592,688 | 1,086,244 | |||||
Intangible assets, net | 159,470 | 436,569 | |||||
Other assets | 44,432 | 39,241 | |||||
Total assets | $ | 10,667,203 | $ | 20,965,803 | |||
Liabilities and stockholders' deficit | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 1,654,101 | $ | 2,623,010 | |||
Accrued liabilities | 3,195,247 | 4,491,164 | |||||
Deferred revenue | 5,702,769 | 8,751,336 | |||||
Warrants | 19,574,977 | 19,787,007 | |||||
Total current liabilities | 30,127,094 | 35,652,517 | |||||
Long-term deferred revenue | 611,863 | 522,329 | |||||
Other liabilities | 535,369 | 320,409 | |||||
Total liabilities | 31,274,326 | 36,495,255 | |||||
Convertible preferred stock: | |||||||
Convertible preferred stock, par value $0.001; 10,000,000 shares authorized, 23,900 shares outstanding at 2017 and 2016 |
5,960,475 | 5,960,475 | |||||
Stockholders' deficit: | |||||||
Common stock, par value $0.001; 300,000,000 shares authorized, 22,805,731 and 22,063,582 shares issued at 2017 and 2016, respectively |
22,806 | 22,064 | |||||
Additional paid-in capital | 450,748,403 | 449,939,406 | |||||
Treasury stock, 4,015 shares at 2017 and 2016 | (205,999 | ) | (205,999 | ) | |||
Accumulated deficit | (477,132,808 | ) | (471,245,398 | ) | |||
Total stockholders' deficit | (26,567,598 | ) | (21,489,927 | ) | |||
Total liabilities and stockholders' deficit | $ | 10,667,203 | $ | 20,965,803 | |||