ClearPoint Neuro Inc.

Greetings. Welcome to the ClearPoint Neuro second quarter 2021 financial results conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. Comments made on this call may include statements that are forward-looking within the meaning of securities laws. These forward-looking statements may include, without limitation, statements related to anticipated industry trends, the company's plans, prospects, and strategies, both preliminary and projected, and management's expectations, beliefs, estimates, or projections regarding future results of operations. Actual results or trends could differ materially. The company undertakes no obligation to revise forward-looking statements for new information or future events. For more information, please refer to the company's annual report on Form 10-K for the year ended December 31, 2020, and the company's quarterly report on Form 10-Q for the quarter ended March 31, 2021, both of which have been filed with the Securities and Exchange Commission, and the company's quarterly report on Form 10-Q for the quarter ended June 30, 2021, Thank you, Diego.

and thank you to all of the investors and analysts on today's call for being a part of the ClearPoint vision and journey. We are here to help restore quality of life to patients and their families who are suffering from some of the most debilitating neurological disorders imaginable. In the second quarter of 2021, we made substantial progress across all four of our pillars of growth, including functional neurosurgery navigation, biologics and drug delivery, ClearPoint therapeutic products, and achieving global scale. Importantly, we made this progress while seeing a return to pre-pandemic case volumes for a new quarterly record of 249 procedures covered, as well as adding multiple new biologics partners to our active list, bringing our total from 30 to approximately 35 today. I will now turn the call over to Danilo, our CFO, to review our financial performance in the quarter, after which I will add some detail to our four-pillar growth strategy. Danilo?

Thank you, Joe, and thank you all for joining us today. Looking at the second quarter 2021 results, total revenue was $3.4 million for the three months ended June 30th, 2021, and $2.5 million for the three months ended June 30th, 2020, which represents an increase in revenue of $0.9 million, or 38%. Our revenue is made up of three components, functional neurosurgery, navigation and therapy, biologics and drug delivery, and capital equipment. Functional neurosurgery navigation revenue consists of disposable product sales related to cases utilizing the ClearPoint system. This revenue segment increased 74% to $1.9 million for the three months ended June 30th, 2021 from $1.1 million for the same period in 2020. This increase reflects the resumptions in the three months ended June 30th, 2021 of elective surgical procedures which were postponed or canceled during the same period in 2020 due to the COVID-19 pandemic. Biologics and drug delivery revenue includes sales of disposable products and services related to customer-sponsored clinical trials utilizing our products. Biologics and drug delivery sales increased 19% to $1.4 million for the three months ended June 30, 2021, from $1.2 million for the same period in 2020. This increase is attributable to increases in both biologic and drug delivery product revenue and service revenue. as our biologic and drug delivery customers reestablish their estimated timelines for initiation or resumption of their clinical trials. Capital equipment and software revenue consisting of sales of ClearPoint reusable hardware and software and of related services were $0.2 million for each of the three-month periods ended June 30th, 2021 and 2020. Revenue from this product line historically has varied from quarter to quarter.