Stereotaxis, Inc.

Good afternoon. Thank you for joining us for Stereo Taxi's fourth quarter and full year 2023 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 filings with the securities and exchange commission including our latest periodic report on form 10k or 10q 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 your questions and comments following the presentation. As a reminder, today's call is being recorded. It is now my pleasure to turn the floor over to your host, David Fishel, Chairman and CEO of Stereo Taxis.

Thank you, Operator, and good afternoon, everyone. It's a very exciting, productive, busy, challenging, and promising period for Stereotaxis. We are glad to be entering this year having made significant progress towards realizing our strategic transformation. Given where we stand, we have high confidence in the key puzzle pieces of this strategy coming together in the coming months, putting Stereotaxis on a solid strategic foundation and providing line of sight to when commercial breakouts are possible. We are driving this progress against the backdrop of various challenges which highlight the merit of our strategy. It is always helpful to view one's position in a broader context. This being our annual call, I want to use the occasion to step back and provide that perspective. I'll then share specific updates on our innovation and commercial efforts, Kim will then provide details on our financial results and we will open the line to questions. Stereotaxis' overarching mission is to improve minimally invasive endovascular surgery with the precision, safety, and unique capabilities of robotics. We are the pioneer and global leader in endovascular robotics and have demonstrated the clinical relevance and value of our technology in robust real-world use at over 100 hospitals that have treated 150,000 patients. Despite having pioneered a highly differentiated and advanced technology that works reliably in the real world and provides meaningful clinical value, Stereotaxis has a long history of commercial struggles. After joining Stereotaxis, I recognized that these struggles could be traced to structural weaknesses with our product ecosystem. These weaknesses put Stereotaxis in a challenging position with commercial disadvantages and strategic dependencies and made adoption of robotics very difficult even for our strongest advocates. We identified three key structural issues. First, in our core existing market, electrophysiology cardiac ablation procedures for the treatment of arrhythmias, We built our business dependent on Johnson & Johnson. We were only integrated with their diagnostic mapping system and they manufacture the ablation catheter used in every one of our procedures. That dependency limited the ability for patients and physicians to benefit from continuous innovation, created commercial challenges, and provided Johnson & Johnson rather than stereo taxes with the majority of the economic value from every robotic procedure. Second, installing our robotic system in a cath lab is a significant construction process, requiring architectural planning, room shielding and reinforcement, special electrical work, and hiring contractors, which all add complexity, time, effort, and expense. This process leads to very long sales cycles and a high bar for adoption. The vast majority of interested potential customers ultimately never succeed in getting a system. Third, while Stereotaxis' robotic technology is designed as a platform technology enabling the treatment of a broad spectrum of complex endovascular procedures, the company did not offer the interventional tools to allow for this expansion of indications. Being limited to one specific procedure, as large and attractive as the cardiac ablation market is, doesn't provide for healthy diversification and full appreciation of our opportunity. Being clear-eyed and intellectually honest was the first step in improvement. We worked hard over the subsequent years to formulate a comprehensive and elegant strategy to address these weaknesses. The strategy was creative and required significant innovation, but was realistic for us to accomplish while controlling technological and financial risk. It was attractive in providing strategic independence and the opportunity for substantial commercial breakout. Most importantly, it fundamentally improves and broadens our product offering for the patients, physicians, and hospitals that rely on us. Stereotaxis has advanced this comprehensive innovation strategy over several years through the development process. 2024 is the year in which we expect all the key puzzle pieces to come together. setting us up with multiple shots on goal for breakout growth in 2025.

A few updates on the key innovation efforts follow.