ClearPoint Neuro(CLPT) - 2024 Q3 - Quarterly Report

Financial Performance - Total revenue for Q3 2024 reached $8,122,000, a 41$5,762,000 in Q3 2023[13] - Product revenue for Q3 2024 was $5,474,000, up 128$2,410,000 in Q3 2023[13] - Gross profit for Q3 2024 was $4,847,000, compared to$3,273,000 in Q3 2023, reflecting a gross margin improvement[13] - Net loss for Q3 2024 was $4,974,000, slightly higher than the net loss of$4,809,000 in Q3 2023[13] - Operating loss for Q3 2024 was $(5,172,000), compared to$(4,897,000) in Q3 2023[13] - Interest income for Q3 2024 was $209,000, compared to$100,000 in Q3 2023, indicating improved financial management[13] - For the nine months ended September 30, 2024, the net loss was $13.5 million, compared to a net loss of$17.5 million for the same period in 2023, representing a 22% improvement[19] - Cash flows from operating activities resulted in a net cash outflow of $7.7 million for the nine months ended September 30, 2024, compared to$12.6 million for the year ended December 31, 2023, indicating a reduction in cash burn[19] Equity and Liabilities - Total stockholders' equity as of September 30, 2024, was $29,001,000, up from$21,173,000 a year earlier[10] - Total liabilities and stockholders' equity as of September 30, 2024, was $40,193,000, down from$42,661,000 a year earlier[10] - Cumulative deficit at September 30, 2024, reached $186.0 million, reflecting ongoing financial challenges since inception[26] Revenue Breakdown - Biologics and drug delivery revenue for the three months ended September 30, 2024, was$4.431 million, up 27% from $3.487 million in the prior year[56] - Neurosurgery navigation and therapy revenue for the three months ended September 30, 2024, was$2.860 million, an increase of 49% compared to $1.918 million in the same period last year[56] - Capital equipment and software revenue for the three months ended September 30, 2024, totaled$831,000, representing a 133% increase from $357,000 in the same period in 2023[56] - The company’s revenue is primarily derived from product sales, professional services, and licensing agreements related to neurosurgery and drug delivery systems[33] Cash and Assets - Cash and cash equivalents at the end of the period were$21.6 million, down from $24.3 million at the end of the previous period[19] - As of September 30, 2024, accounts receivable was$3.875 million, an increase from $3.211 million at December 31, 2023[59] - Total inventory decreased to$7.257 million as of September 30, 2024, from $8.297 million as of December 31, 2023, representing a decline of approximately 12.5$21.6 million, down from $23.1 million as of December 31, 2023[64] Deferred Revenue and Obligations - The company recognized approximately$2.2 million of revenue from deferred revenue during the nine months ended September 30, 2024[60] - Deferred revenues decreased to $1.732 million as of September 30, 2024, down from$3.154 million at December 31, 2023[60] - The company expects to recognize 71% of the remaining performance obligations, amounting to approximately $1.7 million, over the next twelve months[62] Customer and Market Engagement - The company has over 50 biologics and drug delivery customers currently evaluating or using its products and services in trials, indicating significant market engagement[24] - One pharmaceutical customer accounted for 9$3,315,000, an increase from $2,429,000 in Q3 2023[13] - Share-based compensation expense for the three months ended September 30, 2024, was$1.904 million, an increase of 20.2% compared to $1.584 million for the same period in 2023[76] - The company incurred$480,000 in interest expenses during the reporting period[19] Stock and Financing Activities - The company raised approximately $16.2 million from a public offering of 2,653,848 shares of common stock in March 2024[27] - In March 2024, the company completed a public offering of 2,653,848 shares at a price of$6.50 per share, generating net proceeds of approximately $16.2 million[72][73] - The company repaid$10 million under the remaining First Closing Note on August 23, 2024, along with accrued interest of $0.1 million[68] Lease and Facilities - The company recorded a right-of-use asset of approximately$2.5 million in connection with a new lease for a manufacturing facility in Carlsbad, California, which commenced in June 2023[21] - The company has a lease for office and manufacturing space in Carlsbad, California, which commenced on June 1, 2023, and ends on May 31, 2033[70] Stock Options and Employee Plans - The company’s stock option activity shows 1,458,920 options outstanding as of September 30, 2024, with an intrinsic value of $8.187 million[80] - The company granted 1,197,646 Restricted Stock Units (RSUs) during the nine months ended September 30, 2024, increasing the total outstanding RSUs to 1,680,608[84] - The company’s Employee Stock Purchase Plan (ESPP) allowed the purchase of 62,800 shares at an average price of$4.58 during the first offering period of 2024[85] Economic and Operational Considerations - The company continues to monitor macroeconomic trends that could impact its operations, including inflation and supply chain disruptions[25] - The company has not recorded significant foreign currency sales and does not currently engage in hedging to mitigate foreign currency risks[142]