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Corindus Reports Second Quarter 2018 Results

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Advancing Development Programs for Remote Robotics and Neurovascular
Applications

Corindus
Vascular Robotics
, Inc. (NYSE:CVRS), a leading developer
of precision vascular robotics, today reported financial results for its
second quarter ended June 30, 2018.

Recent Highlights and Accomplishments

  • Accelerated initiatives to expand robotic treatment into
    neurovascular procedures.
    Announced Aquilla "Quill" Turk, D.O.
    as Chief Medical Officer of Neurovascular Interventions and formed a
    Steering Committee of eight neurovascular physicians to advance
    robotic technology for neurovascular interventions and acute stroke
    care
  • Meaningful progress in the development of remote vascular
    robotic technology.
    Successful telestenting procedure from a
    remote distance greater than 100 miles at Spectrum Health completed by
    Ryan Madder, M.D. in a porcine model and significant progress in
    pre-clinical trials evaluating remote robotics with the Mayo Clinic
  • Expansion in Japan. Received Pharmaceutical and Medical
    Device Agency (PMDA) approval for CorPath GRX System in Japan and
    began commercial launch with distribution partner, Japan MedicalNext,
    Co. (a wholly owned subsidiary of Mitsubishi Healthcare)

"We have made meaningful progress advancing the development of
remote-telestenting which has, in turn, led to the acceleration of our
efforts to address the neurovascular market. We are focusing our
clinical and development work in this area to leverage the GRX platform
and expand upon what we are building in the interventional suite with
PCI and peripheral applications," stated Mark Toland, President and
Chief Executive Officer. "Despite purchase timing uncertainties and
capital budget cycles at the hospital administration level which have
impacted our results in the first half of the year, we remain confident
in our long-term ability to drive widespread robotics implementation."

Second Quarter 2018 Financial Results

Revenue for the second quarter of 2018 totaled $1.7 million compared to
$2.3 million for the same period in the prior year. During the quarter,
Corindus installed two new CorPath GRX Systems and two system upgrades,
increasing the installed base of CorPath GRX to 41 systems. The company
shipped 390 cassettes in the second quarter of 2018.

Gross loss totaled $0.5 million for the second quarter of 2018 compared
to a gross profit of $0.1 million for the second quarter of 2017.

Selling, general and administrative expenses totaled $6.9 million for
the second quarter of 2018, compared to $5.9 million for the second
quarter of 2017. Research and development expenses totaled $2.0 million
for the second quarter of 2018 compared to $2.5 million for the second
quarter of 2017.

Net loss totaled $9.9 million for the second quarter of 2018, compared
to a net loss of $8.4 million in the second quarter of 2017.

Cash and cash equivalents as of June 30, 2018 were $34.3 million.

Webcast and Conference Call Information

Management will host a conference call and webcast, including slide
presentation, today beginning at 4:30 p.m. ET to discuss financial
results and recent business developments. The conference call will also
include clinician guest speakers to provide expert perspectives on
remote robotics and its future role in the stroke treatment paradigm.

Featured speakers:

  • Ryan Madder, M.D., FACC, Interventional Cardiologist at Spectrum
    Health and Member Cardiovascular Steering Committee at Corindus
  • Aquilla "Quill" Turk, D.O., Director of Neurointerventional Surgery at
    the Medical University of South Carolina and Chief Medical Officer,
    Neurovascular at Corindus

Investors interested in listening to the conference call may do so by
dialing (833) 286-5802 for domestic callers, or (647) 689-4447 for
international callers, using Conference ID: 9599515. To listen to a live
webcast, please visit the "Investor Relations" section of the Company's
website at: www.corindus.com.
Following the call, a replay will be available on the Investor Relations
section of the Company's website.

About Corindus Vascular Robotics, Inc.

Corindus
Vascular Robotics, Inc.
is a global technology leader in
robotic-assisted vascular interventions. The Company's CorPath®
System is the first FDA-cleared medical device to bring robotic
precision to percutaneous coronary and percutaneous vascular procedures.
During the procedure, the interventional cardiologist sits at a
radiation-shielded workstation to advance guide catheters, stents, and
guidewires with millimeter-by-millimeter precision. The workstation
allows the physician greater control and the freedom from wearing heavy
lead protective equipment that causes musculoskeletal injuries. CorPath
GRX is the second generation robotic-assisted PCI technology offering
enhancements to the platform by adding important key upgrades that
increase precision, improve workflow, and extend the capabilities and
range of procedures that can be performed robotically. With the CorPath
System, Corindus Vascular Robotics brings robotic precision to
interventional procedures to help optimize clinical outcomes and
minimize the costs associated with complications of improper stent
placement during manual procedures. Corindus stands behind its product
with its unique $1,000 hospital credit "One Stent Program." For
additional information, visit www.corindus.com,
and follow @CorindusInc.

Forward Looking Statements

Statements made in this release that are not statements of historical
or current facts are "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. Forward-looking
statements may involve known and unknown risks, uncertainties and other
factors that may cause the actual results, performance or achievements
of Corindus to be materially different from historical results or from
any future results or projections expressed or implied by such
forward-looking statements. Accordingly, readers should not place undue
reliance on any forward looking statements. In addition to statements
that explicitly describe such risks and uncertainties, readers are urged
to consider statements in the conditional or future tenses or that
includes terms such as "believes," "belief," "expects," "estimates,"
"intends," "anticipates" or "plans" to be uncertain and forward-looking.
Forward-looking statements may include comments as to Corindus' beliefs
and expectations as to future events and trends affecting its business
and are necessarily subject to uncertainties, many of which are outside
Corindus' control.

Examples of such statements include statements regarding or such as:

  • Our long-term ability to drive widespread robotics implementation.

Important factors that could cause actual results to differ
materially from those indicated by such forward-looking statements are
described in the sections titled "Risk Factors" in the Company's filings
with the Securities and Exchange Commission, including its most recent
Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, as well
as reports on Form 8-K, including, but not limited to the following: our
ability to expand our technology platform and achieve the advances
necessary for telestenting and remote procedures, including in humans;
our ability to expand our technology platform for use in other segments
of the vascular intervention market, including neurointerventional and
other more complex cardiac interventions; obtaining necessary regulatory
approvals for the use on humans and marketing of our products in the
United States and in other countries; the rate of adoption of our
CorPath System and the rate of use of our cassettes; risks associated
with market acceptance, including pricing and reimbursement; our ability
to enforce our intellectual property rights; our need for additional
funds to support our operations; our ability to manage expenses and cash
flow; factors relating to engineering, regulatory, manufacturing, sales
and customer service challenges; potential safety and regulatory issues
that could slow or suspend our sales; and the effect of credit,
financial and economic conditions on capital spending by our potential
customers. Forward looking statements speak only as of the date they are
made. Corindus undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise that occur after that date. More information
is available on Corindus' website at
http://www.corindus.com.

 
CORINDUS VASCULAR ROBOTICS, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
 
      June 30,     December 31,
2018 2017
Assets
Current Assets:
Cash and cash equivalents $ 34,315 $ 17,458
Accounts receivable 1,820 2,863
Inventories, net 2,801 2,103
Prepaid expenses and other current assets   806   539
Total current assets 39,742 22,963
 
Property and equipment, net 1,782 1,452
Deposits and other assets   516   151
Total assets $ 42,040 $ 24,566
 
Liabilities, preferred stock and stockholders' equity
Current Liabilities:
Accounts payable $ 2,524 $ 2,416
Accrued expenses 2,820 3,637
Customer deposits - 93
Deferred revenue 540 339
Current portion of capital lease obligation   53   49
Total current liabilities   5,937   6,534
 
Long-term liabilities:
Deferred revenue, net of current portion 211 342
Long-term capital lease obligation, net of current portion 75 102
Other liabilities 83 73
Long-term debt 11,580 -
Warrant liability   110   -
Total long-term liabilities   12,059   517
Total liabilities   17,996   7,051
Total preferred stock 21,442 -
Total stockholders' equity   2,602   17,515
Total liabilities, preferred stock and stockholders' equity $ 42,040 $ 24,566
 
 

CORINDUS VASCULAR ROBOTICS, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS

(In thousands, except share and per share amounts)

 
      Three Months Ended     Six Months Ended
June 30, June 30,
2018     2017 2018     2017
 
Revenue $ 1,665 $ 2,258 $ 3,150 $ 3,035
Cost of revenue   2,151     2,200     4,080     4,092  
Gross profit (loss)   (486 )   58     (930 )   (1,057 )
 
Operating expenses:
Research and development 2,000 2,489 4,135 5,053
Selling, general and administrative 6,874 5,906 14,329 11,978
Restructuring charge   349     -     349     -  
Total operating expense   9,223     8,395     18,813     17,031  
 
Operating loss (9,709 ) (8,337 ) (19,743 ) (18,088 )
 
Other income (expense)
Warrant revaluation 70 - 100 -
Interest, net   (270 )   (77 )   (316 )   (211 )
Total other income (expense), net   (200 )   (77 )   (216 )   (211 )
 
Net loss $ (9,909 ) $ (8,414 ) $ (19,959 ) $ (18,299 )
 
Accretion of beneficial conversion feature of Series A preferred
stock
- - (5,236 ) -
Accrued dividends on Series A preferred stock (493 ) - (618 ) -
Issuance of Series A-1 preferred stock as dividends on Series A
preferred stock
  (260 )   -     (260 )   -  
 
Net loss attributable to common stockholders $ (10,662 ) $ (8,414 ) $ (26,073 ) $ (18,299 )
 
 

Net loss per share attributable to common stockholders--basic and
diluted

$ (0.06 ) $ (0.04 ) $ (0.14 ) $ (0.11 )
 

Weighted-average common shares used in computing net loss per
share attributable to common stockholders--basic and diluted

  188,833,877     187,190,228     188,802,720     159,687,997  
 
Comprehensive loss:
Net loss $ (9,909 ) $ (8,414 ) $ (19,959 ) $ (18,299 )
Comprehensive loss $ (9,909 ) $ (8,414 ) $ (19,959 ) $ (18,299 )
 

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