report includes various forward-looking statements that are subject to risks and uncertainties, many of which are beyond our control.
Our actual results could differ materially from those anticipated in these forward looking statements as a result of various factors,
including those set forth in Item 1A. “Risk Factors.” Forward-looking statements discuss matters that are not historical
facts. Forward-looking statements include, but are not limited to, discussions regarding our operating strategy, sales and marketing
strategy, regulatory strategy, industry, economic conditions, financial condition, liquidity and capital resources and results
of operations. Such statements include, but are not limited to, statements preceded by, followed by or that otherwise include
the words “believes,” “expects,” “anticipates,” “intends,” “estimates,”
“projects,” “can,” “could,” “may,” “will,” “would,” or
similar expressions. For those statements, we claim the protection of the safe harbor for forward-looking statements contained
in the Private Securities Litigation Reform Act of 1995. You should not unduly rely on these forward-looking statements, which
speak only as of the date on which they were made. They give our expectations regarding the future but are not guarantees. We
undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future
events or otherwise, unless required by law.
designs, manufactures and markets the Epoch Solution, which is an advanced cardiology instrument control system for use
in a hospital’s interventional surgical suite to enhance the treatment of arrhythmias and coronary artery disease. The Epoch
Solution is comprised of the Niobe ES robotic system, Odyssey Solution, and the Vdrive system. We believe
that the Epoch Solution represents a revolutionary technology in the interventional surgical suite, or “interventional
lab,” and has the potential to become the standard of care for a broad range of complex cardiology procedures. We also believe
that our technology represents an important advance in the ongoing trend toward digital instrumentation in the interventional
lab and provides substantial, clinically important improvements and cost efficiencies over manual interventional methods, which
require years of physician training and often result in long and unpredictable procedure times and sub-optimal therapeutic outcomes.
Niobe ES system is the latest generation of the Niobe Robotic Magnetic Navigation System (“Niobe system”).
This system is designed to enable physicians to complete more complex interventional procedures by providing image-guided delivery
of catheters through the blood vessels and chambers of the heart to treatment sites. This is achieved using externally applied
magnetic fields that govern the motion of the working tip of the catheter, resulting in improved navigation, efficient procedures
and reduced x-ray exposure. The core components of the robotic magnetic system have received regulatory clearance in the U.S.,
Canada, Europe, China, Japan and various other countries. As of December 31, 2018, the Company had an installed base of 126 Niobe
also has developed the Odyssey Solution which consolidates all lab information enabling doctors to focus on the patient
for optimal procedure efficiency. The system also features a remote viewing and recording capability called Odyssey Cinema,
which is an innovative solution delivering synchronized content for optimized workflow, advanced care and improved productivity.
This tool includes an archiving capability that allows clinicians to store and replay entire procedures or segments of procedures.
This information can be accessed from locations throughout the hospital local area network and over the global Odyssey
Network providing physicians with a tool for clinical collaboration, remote consultation and training. The Odyssey Solution
may be acquired in conjunction with a robotic magnetic system or on a stand-alone basis for installation in interventional labs
and other locations where clinicians often desire the benefits of the Odyssey Solution that we believe can improve clinical
workflows and related efficiencies.
Vdrive system provides navigation and stability for diagnostic and therapeutic devices designed to improve interventional
procedures. The Vdrive system complements the Niobe ES system control of therapeutic catheters for fully remote
procedures and enables single-operator workflow and is sold as two options, the Vdrive system and the Vdrive Duo
system. In addition to the Vdrive system and the Vdrive Duo system, we also manufacture and market various disposable
components (V-Loop, V-Sono, V-CAS, and V-CAS Deflect) which can be manipulated by these systems.
generate revenue from the initial capital sales of the Niobe, Odyssey and Vdrive systems as well as recurring
revenue from the sale of our proprietary disposable devices, from royalties paid to the Company on the sale by Biosense Webster
of co-developed catheters, and from other recurring revenue including ongoing software and service contracts. We market
our products to a broad base of hospitals in the United States and internationally as detailed in Note 17 to the financial statements.
have strategic relationships with technology leaders in the global interventional market. Through these strategic relationships
we provide compatibility between our robotic magnetic system and digital imaging and 3D catheter location sensing technology,
as well as disposable interventional devices, in order to continue to develop new solutions in the interventional lab. The maintenance
of these strategic relationships, or the establishment of equivalent alternatives, is critical to our commercialization efforts.
The commercial availability of currently compatible digital imaging fluoroscopy systems is unlikely to continue and efforts are
being made to ensure the availability of integrated next generation systems and/or equivalent alternatives; however, we cannot
provide assurance as to the timeline of the ongoing availability of such compatible systems or our ability to obtain equivalent
alternatives on competitive terms or at all.
Company believes the cash on hand at December 31, 2018 will be sufficient to meet its obligations as they become due in the ordinary
course of business for at least 12 months following the date these financial statements are issued. The Company has sustained
operating losses throughout its corporate history and expects that its 2019 expenses will exceed its 2019 gross margin. The Company
expects to continue to incur operating losses and negative cash flows until revenues reach a level sufficient to support ongoing
operations or expense reductions are in place. The Company’s liquidity needs will be largely determined by the success of
clinical adoption within the installed base of robotic magnetic systems as well as by new placements of capital systems. The Company
also may consider raising cash through capital transactions, which could include either debt or equity financing.