ClearPoint Neuro(CLPT) - 2025 Q1 - Quarterly Report

Financial Performance - Total revenue for Q1 2025 was $8.485 million, a 11.1$7.639 million in Q1 2024[20] - Product revenue increased to $5.291 million in Q1 2025, up 45.5$3.635 million in Q1 2024[20] - Gross profit for Q1 2025 was $5.132 million, compared to$4.525 million in Q1 2024, reflecting a gross margin improvement[20] - Net loss for Q1 2025 was $6.026 million, compared to a net loss of$4.146 million in Q1 2024, indicating increased operational costs[20] - Total revenue for the three months ended March 31, 2025, was $8.485 million, an increase of 11.1$7.639 million for the same period in 2024[71] Research and Development - Research and development costs rose to $3.379 million in Q1 2025, up 28.8$2.625 million in Q1 2024[20] - Research and development share-based compensation increased to $484,000 in Q1 2025, up from$337,000 in Q1 2024, reflecting a 43.7% rise[94] Cash and Liquidity - Cash and cash equivalents decreased to $12.387 million at the end of Q1 2025 from$20.104 million at the end of Q4 2024[25] - Cash and cash equivalents were $12.4 million as of March 31, 2025, down from$20.1 million at December 31, 2024, reflecting a decrease of 38.3%[78] - The company has evaluated its ability to continue as a going concern and determined that existing cash balances are sufficient to support operations for at least the next twelve months[34] Assets and Liabilities - Total assets decreased to $30.070 million as of March 31, 2025, down from$39.189 million as of December 31, 2024[18] - Total liabilities decreased to $10.083 million as of March 31, 2025, down from$13.800 million as of December 31, 2024[18] Customer and Revenue Recognition - The company recognizes revenue primarily from product sales, including neurosurgery navigation products and service revenue from development services and consultation[43] - As of March 31, 2025, one customer accounted for 12% of accounts receivable, while two customers represented 24% of accounts receivable as of December 31, 2024[61] - A pharmaceutical customer accounted for 9% of total sales for the three-month periods ended March 31, 2025, and 2024[62] - The company recognized approximately $0.8 million of revenue from deferred revenue during the three months ended March 31, 2025[75] Offerings and Financing - The company completed a follow-on public offering in March 2024, raising approximately$16.2 million from the sale of 2,653,848 shares of common stock[36] - The company has an At-the-Market Equity Offering Sales Agreement allowing for the sale of up to $50 million in common stock, but no shares have been issued under this agreement as of March 31, 2025[36] - The company repaid the remaining$10 million under a Securities Purchase Agreement in August 2024, which had raised gross proceeds of $25 million[37] - The company completed a public offering in March 2024, raising net proceeds of approximately$16.2 million from the sale of 2,653,848 shares at a price of $6.50 per share[91] - The company has not issued any shares under the At-The-Market (ATM) Agreement, which allows for sales of up to$50 million in common stock[92] - The company may sell notes up to an aggregate principal amount of $105 million under a note purchase agreement, with a minimum interest rate of 8.25$6.689 million as of March 31, 2025, compared to $6.966 million at December 31, 2024, a decline of 4.0$1.975 million as of March 31, 2025, down from $2.557 million at December 31, 2024, indicating a reduction of 22.7$1.7 million, over the next twelve months[76] Stock and Compensation - Share-based compensation expense for Q1 2025 totaled $1,908,000, an increase of 27$1,504,000 in Q1 2024[94] - The total unrecognized compensation expense as of March 31, 2025, is $13,499,000, with a weighted-average recognition period of 1.99 years[96] - The company has 1,352,615 stock options outstanding as of March 31, 2025, with an average exercise price of$6.16 and an intrinsic value of $8,897,000[97] - Restricted Stock Units (RSUs) granted in Q1 2025 totaled 541,771, with an average grant date fair value of$13.55[100] Business Operations - The company operates in one reportable segment, primarily generating revenue in the United States[101] - The company has not recorded significant foreign currency sales and does not currently engage in hedging transactions[158] - The company has over 60 biologics and drug delivery customers currently evaluating or using its products and services[32] - The ClearPoint Prism Neuro Laser Therapy System was commercialized in 2022, marking a significant product development milestone[31] Accounting Standards - The company is currently evaluating the impact of new accounting standards on its consolidated financial statements, including ASU 2023-07 and ASU 2023-09[65][68]