Kyle Bowser

Kyle Bowser asked for more details on Stereotaxis's full-year guidance, specifically the product mix contributing to the expected revenue growth, with quarterly revenue projected to be below $10 million in the first half and above in the second half. He also sought initial feedback on the MAGiC ablation catheter, the transition from third-party catheters, and early provider experiences.

Answer

David Fischel, Chairman and CEO of Stereotaxis, indicated that system revenue would build upon last year's baseline with GenesisX launches, which will be a mix of sales, leases, and disposable commitments. He emphasized that most revenue growth would come from disposables (MAGiC and MAGiC Sweep) in line with manufacturing ramps. Mr. Fischel noted that while MAGiC has performed well in procedures, the transition from the previous partner's ecosystem has been challenging, but customers are excited about MAGiC's enhanced capabilities.

Kyle Bowser asked about the anticipated growth rates for the Patient Services and Device Solutions segments within the 6%-8% top-line guidance, the go-forward Adjusted EBITDA margin rate for Q2-Q4 after Q1 ERP expenses, and the impact of the new revenue cycle application on Wound Care volume following its 160% revenue growth in Q4.

Answer

Barry Steele, Chief Financial Officer, indicated that Patient Services, particularly Oncology and Wound Care (including PCDs), is expected to be the primary growth driver, while Device Solutions will also grow despite the GE contract restructuring. He also stated that Adjusted EBITDA margins are expected to remain at higher levels, overcoming inflationary headwinds. Carrie Lachance, Chief Executive Officer, explained that the revenue cycle system allows for more efficient volume ramping in Wound Care and will integrate the Oncology business in the second half of the year, without additional costs.

Kyle Bowser from Lake Street Capital Markets asked about the strategy for driving LifeWallet adoption and how the company assesses its market size. He also questioned how a potential recession might impact the value and collectability of claims rights.

Answer

Founder and CEO John Ruiz responded that LifeWallet adoption is strong because its value proposition as a clearinghouse is easily understood by providers, payers, and hospitals. Regarding a recession, Ruiz asserted that the business is largely insulated from economic cycles, as legal claims are based on established law, and higher interest rates could even positively affect the value of liquidated damages claims.