complexity associated with selling, marketing, and distributing products could impair our ability to increase revenue.
currently market our products in the U.S., Europe and the rest of the world through a direct sales force of sales specialists,
distributors and sales agents, supported by account managers and clinical specialists who provide training, clinical support,
and other services to our customers. If we are unable to effectively utilize our existing sales force or increase our existing
sales force in the foreseeable future, we may be unable to generate the revenue we have projected in our business plan. Factors
that may inhibit our sales and marketing efforts include:
inability to recruit and retain adequate numbers of qualified sales and marketing personnel;|
inability to accurately forecast future product sales and utilize resources accordingly; |
inability of sales personnel to obtain access to or persuade adequate numbers of hospitals and physicians to purchase and
use our products; and |
costs associated with maintaining and expanding an independent sales and marketing organization. |
addition, if we fail to effectively use distributors or contract sales agents for distribution of our products where appropriate,
our revenue and profitability would be adversely affected.
marketing strategy is dependent on collaboration with physician “thought leaders.”
research and development efforts and our marketing strategy depend heavily on obtaining support, physician training assistance,
and collaboration from highly regarded physicians at leading commercial and research hospitals, particularly in the U.S. and Europe.
If we are unable to gain and/or maintain such support, training services, and collaboration or if the reputation or standing of
these physicians is impaired or otherwise adversely affected, our ability to market our products and, as a result, our financial
condition, results of operations and cash flow could be materially and adversely affected.
may not commit enough time to sufficiently learn our system.
order for physicians to learn to use the robotic magnetic system, they must attend structured training sessions in order to familiarize
themselves with a sophisticated user interface and they must be committed to learning the technology. Further, physicians must
utilize the technology on a regular basis to ensure they maintain the skill set necessary to use the interface. Continued market
acceptance could be delayed by lack of physician willingness to attend training sessions, by the time required to complete this
training, or by state or institutional restrictions on our ability to provide training. An inability to train a sufficient number
of physicians to generate adequate demand for our products could have a material adverse impact on our financial condition and
may choose to purchase competing products and not ours.
products must compete with traditional interventional methods. These methods are widely accepted in the medical community, have
a long history of use and do not require the purchase of an additional expensive piece of capital equipment. In addition, many
of the medical conditions that can be treated using our products can also be treated with pharmaceuticals or other medical devices
and procedures. Many of these alternative treatments are also widely accepted in the medical community and have a long history
are aware of three companies that have commercialized endovascular catheter navigation systems which have been cleared by the
FDA for mapping and/or ablation procedures. In addition, we are aware of two companies with an electromagnetic catheter navigation
system that has received CE Mark approval in Europe.
face competition from companies that are developing drugs, gene or cellular therapies or other medical devices or procedures to
treat the conditions for which our products are intended. The medical device and pharmaceutical industries make significant investments
in research and development, and innovation is rapid and continuous. Other companies in the medical device industry continue to
develop new devices and technologies for traditional interventional methods.
these or other new products or technologies emerge that provide the same or superior benefits as our products at equal or lesser
cost, it could render our products obsolete or unmarketable. In addition, the presence of other competitors may cause potential
customers to delay their purchasing decisions, resulting in a longer than expected sales cycle, even if they do not choose our
competitors’ products. We cannot be certain that physicians will use our products to replace or supplement established treatments
or that our products will be competitive with current or future products and technologies.
of our other competitors also have longer operating histories, significantly greater financial, technical, marketing and other
resources, greater name recognition and a larger base of customers than we do. In addition, as the markets for medical devices
develop, additional competitors could enter the market. We cannot assure you that we will be able to compete successfully against
existing or new competitors. Our revenue would be reduced or eliminated if our competitors develop and market products that are
more effective and less expensive than our products.
the magnetic fields generated by our system are not compatible with, or interfere with, other widely used equipment in the interventional
labs, sales of our products would be negatively affected.
robotic magnetic system generates magnetic fields that directly govern the motion of the internal, or working, tip of disposable
interventional devices. If other equipment in the interventional labs or elsewhere in a hospital is incompatible with the magnetic
fields generated by our system, or if our system interferes with such equipment, we may be required to install additional shielding,
which may be expensive and which may not solve the problem. If magnetic interference becomes a significant issue at targeted institutions,
it would increase our installation costs at those institutions and could limit the number of hospitals that would be willing to
purchase and install our systems, either of which would adversely affect our financial condition, results of operations and cash
use of our products could result in product liability claims that could be expensive, divert management’s attention, and
harm our reputation and business.
business exposes us to significant risks of product liability claims. The medical device industry has historically been litigious,
and we could face product liability claims if the use of our products were to cause injury or death. The coverage limits of our
product liability insurance policies may not be adequate to cover future claims, and we may be unable to maintain product liability
insurance in the future at satisfactory rates or adequate amounts. A product liability claim, regardless of its merit or eventual
outcome, could divert management’s attention, and result in significant legal defense costs, significant harm to our reputation
and a decline in revenue.