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Catheter Precision(VTAK) - 2024 Q4 - Annual Report
VTAKCatheter Precision(VTAK)2025-03-28 21:38

Company Merger and Focus - The Company merged with Catheter Precision, Inc. on January 9, 2023, shifting focus to cardiac electrophysiology technologies[297]. Product Performance - The VIVO System has been utilized in over 1,000 procedures in the U.S. and EU, with no reported device-related complications[302]. - The Company recognized its first sale of the LockeT device in May 2024, with CE Mark approval expected in the first half of 2026[304]. - VIVO System product sales decreased by 214,000from214,000 from 442,000 in 2023 to 228,000in2024,whileLockeTsalesincreasedby228,000 in 2024, while LockeT sales increased by 191,000[323]. Financial Performance - Revenues for the year ended December 31, 2024, were 420,000,adecreaseof420,000, a decrease of 22,000 compared to 442,000in2023[322].−Thecostofrevenuesincreasedby442,000 in 2023[322]. - The cost of revenues increased by 12,000 for the year ended December 31, 2024, due to order fulfillment charges for LockeT[324]. - Selling, general and administrative expenses decreased by 5,773,000from5,773,000 from 17,122,000 in 2023 to 11,349,000in2024[322].−Researchanddevelopmentexpensesdecreasedby11,349,000 in 2024[322]. - Research and development expenses decreased by 203,000 from 475,000in2023to475,000 in 2023 to 272,000 in 2024[322]. - Selling, general and administrative expenses decreased by approximately 5.8millionfortheyearendedDecember31,2024,primarilyduetoa5.8 million for the year ended December 31, 2024, primarily due to a 2.0 million decrease in legal fees and a 1.4milliondecreaseinprofessionalaccountingfeesrelatedtotheMergerin2023[325].−Researchanddevelopmentexpensesdecreasedbyapproximately1.4 million decrease in professional accounting fees related to the Merger in 2023[325]. - Research and development expenses decreased by approximately 0.2 million for the year ended December 31, 2024, mainly due to a 0.1milliondecreaseinproductdevelopmentcostsandregulatoryaffairsexpenditures[326].−Thecompanyrecognizedagoodwillimpairmentchargeof0.1 million decrease in product development costs and regulatory affairs expenditures[326]. - The company recognized a goodwill impairment charge of 60.9 million for the year ended December 31, 2023, with no remaining goodwill balance as of December 31, 2023[328][329]. - The fair value of royalties payable decreased by 9.4millionfortheyearendedDecember31,2024,drivenbychangesinforecastedroyaltypaymentsanddiscountrates[330].−Thecompanyrecordedanincometaxprovisionof9.4 million for the year ended December 31, 2024, driven by changes in forecasted royalty payments and discount rates[330]. - The company recorded an income tax provision of 3.1 million in 2024, compared to zero in 2023, primarily due to a nonrecurring adjustment from an ownership change[332]. Cash Flow and Financing - As of December 31, 2024, the company had cash and cash equivalents of approximately 2.9millionandanaccumulateddeficitofapproximately2.9 million and an accumulated deficit of approximately 292 million[333]. - Net cash used in operating activities was approximately 9.3millionfortheyearendedDecember31,2024,comparedto9.3 million for the year ended December 31, 2024, compared to 20.6 million in 2023[337][338]. - Net cash provided by financing activities was $8.6 million for the year ended December 31, 2024, primarily from the issuance of common stock and warrants[342]. - The company expects operating losses and negative cash flows to continue as it invests in commercial capabilities and anticipates the need for additional financing within the next three to six months[335][336]. Going Concern - Management has concluded there is substantial doubt about the company's ability to continue as a going concern for a period of one year after the issuance of the consolidated financial statements for the year ended December 31, 2024[336].