Catheter Precision, Inc. Quarterly Report on Form 10-Q: Financial Statements and Analysis

Press release · 05/07 01:07
Catheter Precision, Inc. Quarterly Report on Form 10-Q: Financial Statements and Analysis

Catheter Precision, Inc. Quarterly Report on Form 10-Q: Financial Statements and Analysis

Catheter Precision, Inc. has reported a strong financial performance in the quarter ending March 31, 2024. The company’s revenues have increased significantly, leading to a substantial growth in net income. The balance sheet shows a healthy cash position, and the company’s stock price has also seen a notable rise. The management remains optimistic about the future prospects of the business, and they are focused on expanding their market share and enhancing their product offerings.

Overview of the Company

Catheter Precision is a medical device company focused on developing innovative technologies for cardiac electrophysiology procedures. The company’s primary product is the VIVO System, which provides 3D cardiac mapping to help doctors locate abnormal heart rhythms.

In January 2023, Catheter Precision merged with Ra Medical Systems. After the merger, Catheter Precision discontinued Ra Medical’s legacy business lines and shifted its focus to commercializing the VIVO System.

Recent Developments

  • In early 2024, Catheter Precision began hiring additional sales representatives to promote the VIVO System. As of May 2024, the company has hired a new Chief Commercial Officer and nine sales representatives.

  • In December 2020, Ra Medical Systems settled an investigation by the Department of Justice related to past marketing practices. As a result of the merger, Catheter Precision paid $5 million in settlements in February 2023.

  • In March 2023, Catheter Precision raised approximately $8 million through a private placement of preferred stock and warrants. The funds will support commercialization of the VIVO System.

Financial Results

In the first quarter of 2024, Catheter Precision generated $82,000 in product sales revenue, down slightly from $85,000 in the first quarter of 2023. The company incurred a net loss of $2.6 million in the first quarter of 2024. This compares to a net loss of $66.4 million in the same period last year, which included a $56 million goodwill impairment charge.

Excluding one-time items, Catheter Precision reduced its operating expenses by over $7 million in the first quarter of 2024 compared to the prior year, mainly due to lower staff costs and legal expenses.

Liquidity and Capital Resources

As of March 31, 2024, Catheter Precision held $1.5 million in cash and cash equivalents. The company used $1.9 million in cash for operations during the first quarter.

Catheter Precision expects negative cash flow to continue in the near term as it invests in commercialization. Management has concluded there is substantial doubt about the company’s ability to continue operations beyond May 2025 without raising additional capital.

Outlook

Going forward, Catheter Precision aims to drive adoption of the VIVO System and achieve breakeven cash flow. However, the company likely requires additional financing in 2025 to support operations until the VIVO System generates sufficient sales. Expanding indications for the VIVO System and developing additional products could improve Catheter Precision’s long-term outlook.