STXS Stereotaxis Inc

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 OR 15(D) of the Securities Exchange Act Of 1934

 

Date of report (Date of earliest event reported): August 10, 2023

 

STEREOTAXIS, INC.

(Exact Name of Registrant as Specified in Its Charter)

 

Delaware

(State or Other Jurisdiction of Incorporation)

 

001-36159		94-3120386
(Commission File Number)		(IRS Employer Identification No.)

 

710 North Tucker Boulevard, Suite 110, St. Louis, Missouri		63101
(Address of Principal Executive Offices)		(Zip Code)

 

(314) 678-6100

(Registrant’s Telephone Number, Including Area Code)

 

 

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

	☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
	☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
	☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
	☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Securities registered pursuant to Section 12(b) of the Act: ☐

 

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.001 per share		STXS		NYSE American LLC

 

 

 

Item 2.02 Results of Operations and Financial Condition

 

On August 10, 2023, Stereotaxis, Inc. (the “Company”) issued a press release (the “Earnings Press Release”) setting forth its financial results for the 2023 second quarter. A copy of the Earnings Press Release is being filed as Exhibit 99.1 hereto, and the statements contained therein are incorporated by reference herein.

 

Forward-Looking Statements and Additional Information

 

Statements are made herein or incorporated herein that are “forward-looking statements” as defined by the Securities and Exchange Commission (the “SEC”). All statements, other than statements of historical fact, included or incorporated herein that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are not guarantees of future events or the Company’s future performance and are subject to risks, uncertainties and other important factors that could cause events or the Company’s actual performance or achievements to be materially different than those projected by the Company. For a full discussion of these risks, uncertainties and factors, the Company encourages you to read its documents on file with the SEC. Except as required by law, the Company does not intend to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

 

In accordance with General Instruction B.2. of Form 8-K, the information contained in Item 2.02 and Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

 

Item 9.01 Financial Statements and Exhibits

 

(d) Exhibits.

 

	99.1		Stereotaxis, Inc. Earnings Press Release dated August 10, 2023.
	104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

	STEREOTAXIS, INC.
Date: August 10, 2023	By:	/s/ Kimberly R. Peery
	Name:	Kimberly R. Peery
	Title:	Chief Financial Officer

 

 

Exhibit 99.1

 

 

Stereotaxis Reports 2023 Second Quarter Financial Results

 

ST. LOUIS, August 10, 2023 (GLOBE NEWSWIRE) – Stereotaxis (NYSE: STXS), a pioneer and global leader in surgical robotics for minimally invasive endovascular intervention, today reported financial results for the second quarter ended June 30, 2023.

 

“Stereotaxis delivered 28% revenue growth in the quarter, driven by a healthy system pipeline and continued demand for our robotic technology,” said David Fischel, Chairman and CEO. “We received orders for two Genesis systems in the second quarter. System backlog of $16 million, multiple upcoming installations, and continued interest in our robotic technology support our expectation of annual double digit revenue growth.”

 

“Stereotaxis continues to advance a robust innovation strategy. During the quarter we announced a significant strategic collaboration with Abbott to integrate the EnSite X mapping system with our robotic technology. Successful joint integrated procedures have begun in Europe and we expect growing adoption in the coming months. We rapidly responded to the request for first-in-human data to support CE Mark of the MAGiC catheter and have submitted documentation to initiate a study. Development of our next-generation highly-accessible robot remains on track. We are excited by the strategic transformation underway as we advance a new foundational product ecosystem that makes robotics broadly accessible and impactful across endovascular surgery.”

 

“We remain cognizant of the importance of maintaining financial strength and discipline. We are confident in our balance sheet and anticipate reduced cash utilization in upcoming quarters. Our clean balance sheet allows us to advance our transformative product ecosystem to market, fund its commercialization, and reach profitability without the need for additional financing.”

 

2023 Second Quarter Financial Results

 

Revenue for the second quarter of 2023 totaled $7.9 million, a 28% year-over-year increase compared to $6.2 million in the prior year second quarter. System revenue for the quarter was $3.3 million and recurring revenue was $4.6 million, compared to $0.6 million and $5.6 million in the prior year second quarter, respectively. System revenue growth reflects revenue recognition on the delivery of two Genesis systems. Recurring revenue was impacted by the absence of catheter royalties received in the prior year and by catheter production shortages which impacted procedure volumes but have since been resolved.

 

Gross margin for the second quarter of 2023 was 53% of revenue. Recurring revenue gross margin was 79% and system gross margin was 18%. Operating expenses in the second quarter of $9.5 million include $2.6 million in non-cash stock compensation expense. Excluding non-cash stock compensation expense, adjusted operating expenses in the current quarter were $6.9 million compared to $7.2 million for adjusted operating expenses in the prior year second quarter.

 

Operating loss and net loss for the second quarter of 2023 were ($5.3) million and ($5.0) million, respectively, compared to approximately ($5.2) million for both in the previous year. Adjusted operating loss and adjusted net loss for the quarter, excluding non-cash stock compensation expense, were ($2.7) million and ($2.4) million, respectively, compared to ($2.5) million for both in the previous year. Negative free cash flow for the second quarter was ($2.9) million.

 

Cash Balance and Liquidity

 

At June 30, 2023, Stereotaxis had cash and cash equivalents, including restricted cash, of $23.9 million and no debt.

 

 

Forward Looking Expectations

 

Stereotaxis reiterates its expectation of double-digit revenue growth in 2023 driven by revenue recognition of system backlog and new system orders. Accelerating revenue growth in subsequent years is expected to be supported by new technology launches.

 

Stereotaxis expects to end the year with $22-24 million in cash and no debt. This balance sheet allows us to advance a transformative product ecosystem to market, fund its commercialization, and reach profitability without the need for additional financing.

 

Conference Call and Webcast

 

Stereotaxis will host a conference call and webcast today, August 10, 2023, at 10:00 a.m. Eastern Time. To access the conference call, dial 1-800-715-9871 (US and Canada) or 1-646-307-1963 (International) and give the participant pass code 5648825. Participants are asked to call 5-10 minutes prior to the start time. To access the live and replay webcast, please visit the investor relations section of the Stereotaxis website at https://ir.stereotaxis.com/.

 

About Stereotaxis

 

Stereotaxis (NYSE: STXS) is a pioneer and global leader in innovative surgical robotics for minimally invasive endovascular intervention. Its mission is the discovery, development and delivery of robotic systems, instruments, and information solutions for the interventional laboratory. These innovations help physicians provide unsurpassed patient care with robotic precision and safety, expand access to minimally invasive therapy, and enhance the productivity, connectivity, and intelligence in the operating room. Stereotaxis technology has been used to treat over 100,000 patients across the United States, Europe, Asia, and elsewhere. For more information, please visit www.Stereotaxis.com.

 

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. Factors that would cause or contribute to such differences include, but are not limited to, the Company’s ability to manage expenses at sustainable levels, 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 technology, competitive factors, changes resulting from healthcare policy, dependence upon third-party vendors, timing of regulatory approvals, the impact of pandemics or other disasters, and other risks discussed in the Company’s periodic and other filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release. There can be no assurance that the Company will recognize revenue related to its purchase orders and other commitments because some of these purchase orders and other commitments are subject to contingencies that are outside of the Company’s control and may be revised, modified, delayed, or canceled.

 

Company Contacts:
David L. Fischel
Chairman and Chief Executive Officer
Kimberly R. Peery
Chief Financial Officer
314-678-6100
Investors@Stereotaxis.com

 

 

STEREOTAXIS, INC.

STATEMENTS OF OPERATIONS

(Unaudited)

 

(in thousands, except share and per share amounts)		Three Months Ended June 30,								Six Months Ended June 30,
		2023				2022				2023				2022
Revenue:
Systems		$	3,313			$	602			$	5,134			$	2,236
Disposables, service and accessories			4,546				5,550				9,273				10,953
Total revenue			7,859				6,152				14,407				13,189
Cost of revenue:
Systems			2,703				509				4,400				1,801
Disposables, service and accessories			969				973				1,944				1,794
Total cost of revenue			3,672				1,482				6,344				3,595
Gross margin			4,187				4,670				8,063				9,594
Operating expenses:
Research and development			2,647				2,893				5,393				5,340
Sales and marketing			3,340				3,279				6,488				6,225
General and administrative			3,477				3,677				7,078				7,297
Total operating expenses			9,464				9,849				18,959				18,862
Operating loss			(5,277	)			(5,179	)			(10,896	)			(9,268	)
Other income			27				-				27				-
Interest income, net			293				45				565				48
Net loss		$	(4,957	)		$	(5,134	)		$	(10,304	)		$	(9,220	)
Cumulative dividend on convertible preferred stock			(335	)			(335	)			(666	)			(666	)
Net loss attributable to common stockholders		$	(5,292	)		$	(5,469	)		$	(10,970	)		$	(9,886	)
Net loss per share attributed to common stockholders:
Basic		$	(0.07	)		$	(0.07	)		$	(0.14	)		$	(0.13	)
							-
Diluted		$	(0.07	)		$	(0.07	)		$	(0.14	)		$	(0.13	)
Weighted average number of common shares and equivalents:
Basic			81,049,211				75,953,916				78,787,652				75,915,864
Diluted			81,049,211				75,953,916				78,787,652				75,915,864

 

 

STEREOTAXIS, INC.

BALANCE SHEETS

 

(in thousands, except share amounts)		June 30, 2023				December 31, 2022
		(Unaudited)
Assets
Current assets:
Cash and cash equivalents		$	22,877			$	8,586
Restricted cash - current			569				525
Short-term investments			-				19,844
Accounts receivable, net of allowance of $169 and $235 at 2023 and 2022, respectively			6,645				5,090
Inventories, net			7,703				7,876
Prepaid expenses and other current assets			1,108				1,325
Total current assets			38,902				43,246
Property and equipment, net			3,590				3,831
Restricted cash			481				744
Operating lease right-of-use assets			5,188				5,384
Prepaid and other non-current assets			154				208
Total assets		$	48,315			$	53,413
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable		$	2,840			$	3,270
Accrued liabilities			2,920				3,306
Deferred revenue			8,223				7,342
Current portion of operating lease liabilities			399				373
Total current liabilities			14,382				14,291
Long-term deferred revenue			1,639				1,654
Operating lease liabilities			5,282				5,488
Other liabilities			43				51
Total liabilities			21,346				21,484
Series A - Convertible preferred stock:
Convertible preferred stock, Series A, par value $0.001; 22,383 shares outstanding at 2023 and 2022			5,583				5,583
Stockholders’ equity:
Convertible preferred stock, Series B, par value $0.001; 10,000,000 shares authorized, 5,610,121 shares outstanding at 2022			-				6
Common stock, par value $0.001; 300,000,000 shares authorized, 80,682,586 and 74,874,459 shares issued at 2023 and 2022, respectively			81				75
Additional paid-in capital			548,782				543,438
Treasury stock, 4,015 shares at 2023 and 2022			(206	)			(206	)
Accumulated deficit			(527,271	)			(516,967	)
Total stockholders’ equity			21,386				26,346
Total liabilities and stockholders’ equity		$	48,315			$	53,413

 

v3.23.2

Cover	Aug. 10, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Aug. 10, 2023
Entity File Number	001-36159
Entity Registrant Name	STEREOTAXIS, INC.
Entity Central Index Key	0001289340
Entity Tax Identification Number	94-3120386
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	710 North Tucker Boulevard
Entity Address, Address Line Two	Suite 110
Entity Address, City or Town	St. Louis
Entity Address, State or Province	MO
Entity Address, Postal Zip Code	63101
City Area Code	(314)
Local Phone Number	678-6100
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	STXS
Security Exchange Name	NYSEAMER
Entity Emerging Growth Company	false

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