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Form 8-K Stereotaxis, Inc. For: Aug 09

August 9, 2022 9:06 AM EDT

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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 9, 2022

 

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 9, 2022, Stereotaxis, Inc. (the “Company”) issued a press release (the “Earnings Press Release”) setting forth its financial results for the 2022 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 9, 2022.
104Cover 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 9, 2022 By: /s/ Kimberly R. Peery
  Name: Kimberly R. Peery
  Title: Chief Financial Officer

 

 

 

 

Exhibit 99.1

 

 

Stereotaxis Reports 2022 Second Quarter Financial Results

 

ST. LOUIS, MO, Aug. 9, 2022 (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, 2022.

 

“Despite macro pressures and the poor optics of our financial results, Stereotaxis is making significant progress commercially and technologically,” said David Fischel, Chairman and CEO. “I am pleased with our progress and confident in where we stand and the path ahead of us. We see continued demand for our technology, are advancing a transformative innovation pipeline, and are assembling an all-star commercial team, all while maintaining financial stability and strength.”

 

“We received three orders for Genesis systems during the second quarter, two since our last call and one of which will become a second active robot at a prestigious US hospital. The recent CE Mark submission for the MAGiC ablation catheter is reflective of the methodical progress being made across multiple fronts on our strategic innovation plan. We continue to anticipate multiple highly impactful technologies to be launched throughout 2023 and beyond. As these launches approach we are placing increased focus on ensuring the right commercial team, infrastructure and processes are in place to drive substantial revenue growth. The addition of highly experienced commercial leaders to our team is a testament to the opportunity in front of us.”

 

2022 Second Quarter Financial Results

 

Revenue for the second quarter of 2022 totaled $6.2 million, compared to $9.1 million in the prior year second quarter with the decrease primarily driven by lower revenue recognition of system sales in the current quarter. System revenue for the second quarter was $0.6 million and recurring revenue was $5.6 million.

 

Gross margin for the second quarter of 2022 was 76% of revenue, with system gross margin of 16% and recurring revenue gross margin of 83%. Operating expenses in the quarter of $9.8 million include $2.7 million in non-cash stock compensation expense. Excluding stock compensation expense, adjusted operating expenses were $7.2 million, consistent with the prior year second quarter.

 

Operating loss and net loss for the second quarter of 2022 were both approximately ($5.2) million, compared to a ($3.4) million operating loss and a ($1.2) million net loss in the previous year. Net loss in the prior year quarter reflects a favorable $2.2 million adjustment for the forgiveness of the Paycheck Protection Loan. Adjusted operating loss and adjusted net loss for the quarter, excluding non-cash stock compensation expense, were both ($2.5) million. Negative free cash flow for the second quarter was ($1.8) million.

 

Cash Balance and Liquidity

 

At June 30, 2022, Stereotaxis had cash and cash equivalents, including restricted cash, of $35.1 million and no debt.

 

Forward Looking Expectations

 

Revenue for the first half of this year represents a nadir in performance with results in the second half expected to be substantially higher. Stereotaxis’ current system backlog of over $12 million supports its prior guidance of overall revenue growth in 2022. While this guidance remains achievable, significant variability in hospital construction timelines suggests that a sufficient portion of backlog may be recognized as revenue in the following year, introducing caution to this guidance. Substantial and consistent revenue growth in the coming years is expected to be supported by new technology launches and an enhanced commercial organization. Stereotaxis expects to end the year with approximately $32 million in cash and cash equivalents, maintaining a robust balance sheet that allows it to reach profitability without the need for additional financings.

 

 
 

 

Conference Call and Webcast

 

Stereotaxis will host a conference call and webcast today, August 9, 2022, at 10:00 a.m. Eastern Time. To access the conference call, dial 1-888-394-8218 (US and Canada) or 1-856-344-9221 (International) and give the participant pass code 9211068. 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 www.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.

 

Investor Contacts:   Media Contact:
     
David L. Fischel   Bethanne Schluter
Chairman and Chief Executive Officer   Director, Marketing & Communications
     
Kimberly Peery    
Chief Financial Officer    
     
314-678-6100    
[email protected]    

 

 
 

 

STEREOTAXIS, INC.

STATEMENTS OF OPERATIONS

(Unaudited)

 

(in thousands, except share and per share amounts)  Three Months Ended
June 30,
   Six Months Ended
June 30,
 
   2022   2021   2022   2021 
                 
Revenue:                    
Systems  $602   $2,686   $2,236   $5,289 
Disposables, service and accessories   5,550    6,118    10,953    11,892 
Sublease   -    247    -    493 
Total revenue   6,152    9,051    13,189    17,674 
                     
Cost of revenue:                    
Systems   509    1,390    1,801    2,825 
Disposables, service and accessories   973    882    1,794    1,808 
Sublease   -    247    -    493 
Total cost of revenue   1,482    2,519    3,595    5,126 
                     
Gross margin   4,670    6,532    9,594    12,548 
                     
Operating expenses:                    
Research and development   2,893    2,717    5,340    5,084 
Sales and marketing   3,279    3,045    6,225    5,992 
General and administrative   3,677    4,161    7,297    6,391 
Total operating expenses   9,849    9,923    18,862    17,467 
Operating loss   (5,179)   (3,391)   (9,268)   (4,919)
                     
Interest (expense) income, net   45    (3)   48    (7)
Gain on extinguishment of debt   -    2,183    -    2,183 
Net loss  $(5,134)  $(1,211)  $(9,220)  $(2,743)
Cumulative dividend on convertible preferred stock   (335)   (335)   (666)   (668)
Net loss attributable to common stockholders  $(5,469)  $(1,546)  $(9,886)  $(3,411)
                     
Net loss per share attributed to common stockholders:                    
Basic  $(0.07)  $(0.02)  $(0.13)  $(0.05)
         -           
Diluted  $(0.07)  $(0.02)  $(0.13)  $(0.05)
                     
Weighted average number of common shares and equivalents:                    
Basic   75,953,916    75,547,574    75,915,864    75,362,521 
                     
Diluted   75,953,916    75,547,574    75,915,864    75,362,521 

 

 
 

 

STEREOTAXIS, INC.

BALANCE SHEETS

 

(in thousands, except share amounts)  June 30,
2022
   December 31,
2021
 
   (Unaudited)     
Assets          
Current assets:          
Cash and cash equivalents  $33,498   $38,739 
Restricted cash - current   618    454 
Accounts receivable, net of allowance of $225 and $180 at 2022 and 2021, respectively   3,748    5,406 
Inventories, net   7,786    4,433 
Prepaid expenses and other current assets   991    2,356 
Total current assets   46,641    51,388 
Property and equipment, net   3,260    2,632 
Restricted cash   1,006    952 
Operating lease right-of-use assets   5,553    5,735 
Prepaid and other non-current assets   218    278 
Total assets  $56,678   $60,985 
           
Liabilities and stockholders’ equity          
Current liabilities:          
Accounts payable  $4,244   $4,189 
Accrued liabilities   2,126    2,528 
Deferred revenue   6,959    6,277 
Current portion of operating lease liabilities   328    268 
Total current liabilities   13,657    13,262 
Long-term deferred revenue   1,630    2,238 
Operating lease liabilities   5,663    5,842 
Other liabilities   202    219 
Total liabilities   21,152    21,561 
           
Series A - Convertible preferred stock:          
Convertible preferred stock, Series A, par value $0.001; 22,386 and 22,387 shares outstanding at 2022 and 2021, respectively   5,584    5,584 
Stockholders’ equity:          
Convertible preferred stock, Series B, par value $0.001; 10,000,000 shares authorized, 5,610,121 shares outstanding at 2022 and 2021   6    6 
Common stock, par value $0.001; 300,000,000 shares authorized, 74,686,056 and 74,618,240 shares issued at 2022 and 2021, respectively   75    75 
Additional paid-in capital   537,963    532,641 
Treasury stock, 4,015 shares at 2022 and 2021   (206)   (206)
Accumulated deficit   (507,896)   (498,676)
Total stockholders’ equity   29,942    33,840 
Total liabilities and stockholders’ equity  $56,678   $60,985 

 

 



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