Stereotaxis, Inc.

Good morning. Thank you for joining us for the Stereotaxis First Quarter 2021 Earnings Conference Call. Certain statements during the conference call and question and answer period to follow may relate to future events, expectations, and as such constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks. uncertainties and other factors which may cause the actual results, performance, or achievements of the company in the future to be materially different from the statements that the company's executives may make today. These risks are described in detail in our public filing with the Securities and Exchange Commission, including our latest periodic report on Form 10-K or 10-Q. We assume no duty to update these statements. At this time, all participants have been placed on a listen-only mode. The floor will be open for questions and comments following the presentation. As a reminder, today's conference is being recorded. It is now my pleasure to turn the floor over to your host, David Fischel, Chairman and CEO of Stereo Taxes.

Thank you, Operator, and good morning, everyone. I'm joined today by Kim Peary, our Chief Financial Officer. Our last call two months ago was an annual earnings call. and I use the occasion to provide a broader overview of our technology, clinical value, vision, and strategy. We'll keep this quarterly call more brief. The highlight of the first quarter is Stereotaxis' return to robust double-digit revenue growth with 50% year-over-year growth compared to the first quarter of last year. We have long discussed renewed adoption of robotic systems as the first significant wave of revenue growth in our strategic innovation plan. we are pleased to reap the initial fruits of that strategy. During the first quarter, we shipped a Genesis and Model S system to a hospital establishing a new robotic electrophysiology program in Europe, as well as an IOB system to a hospital establishing a new robotic electrophysiology program in China. In both of these cases, partial revenue recognition was triggered upon shipment of systems and the revenue reported reflects a portion of the overall contract value from those two deals. We expect to install both systems late in the second quarter and to begin procedures in summer. On our last call, we reported on three additional system orders that had been received, two greenfield systems in the US and a replacement cycle system in Europe. These remain on track for installation during the third quarter. As mentioned on the last call, we will announce the names of these hospitals as they are ready to highlight their clinical and technological leadership in their communities. In the two months since our last call, we were pleased to receive an additional order for our Genesis robot and the Model S imaging system from an existing customer in the Midwest. The customer is part of a large hospital network and the terms of the order make it likely that an incremental genesis system will be ordered from the network prior to year end. We continue to see significant interest in genesis across geographies and at both potential new and existing hospital customers. The timing of any individual order remains difficult to predict, but we are pleased with the quality of discussions and remain confident in a robust pace of orders in the coming quarters. Despite a still challenging macro environment, our confidence in the Genesis opportunity is predicated upon three main factors. First, physicians continue to have great experiences with the Genesis system. Both Banner University and Helsinki University remain highly active, with over 250 robotic procedures performed on Genesis to date. Physicians have started visiting both sites virtually or in person. During a recent in-person visit, A physician summed up the typical feedback nicely. The combination of Genesis, Model S, and Odyssey is very impressive. This visit very much exceeded my expectations. Second, from the bottom up, we continue to engage with customers in a robust fashion and build our commercial capabilities. In the past two months, we hosted over 38 physicians and administrators on 23 separate telerobotic test drives of Genesis. 30% of these visits were first discussions with greenfield opportunities. Third, we can sense a gradual thawing in Stereotexis's reputation and visibility in the industry. While this is a perception and therefore less tangible, our visibility across conferences last month is a case in point. Just during the month of April, two separate live robotic procedures were broadcast from regional EP conferences. Physicians presented our technology at three separate international conferences. and I had the opportunity to provide the keynote talk at an international conference on robotic surgery. At AERA, the European Heart Rhythm Association, our symposium was chaired enthusiastically by Professor Carl Heinz Cook, a pioneer of cardiac ablation therapy and the previous president of AERA. We were also pleased to learn that the Society for Cardiac Robotic Navigation was invited to host a session at the Heart Rhythm Society's annual conference in July titled robotics and automation in catheter ablation.

This is the first time SCRN has been formally included in the HRS program.