vtak_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2023

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission File No. 001-38677

Catheter Precision, Inc.

(Exact name of registrant as specified in its charter)

Delaware		38-3661826
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)

1670 Highway 160 West, Suite 205 Fort Mill, South Carolina		29708
(Address of principal executive offices)		(Zip Code)

(973) 691-2000

(Registrant’s telephone number, including area code)

Ra Medical Systems, Inc.

(Former name, former address and former fiscal year, if changed since last report)

Securities Registered under Section 12(b) of the Act:

Title of each class:

Trading Symbol(s)

Name of each exchange on

which registered:

Common stock, par value $0.0001 per share

VTAK

NYSE American

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☐ No ☒

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☐ No ☒

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated Filer	☒	Smaller reporting company	☒
		Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b‑2 of the Exchange Act). Yes ☐ No ☒

As of the close of business on December 13, 2023, the registrant had 7,026,678 shares of common stock, par value $0.0001 per share, outstanding.

CATHETER PRECISION, INC. (formerly known as RA MEDICAL SYSTEMS, INC.)

QUARTERLY REPORT ON FORM 10-Q

TABLE OF CONTENTS

		Page(s)

PART I. FINANCIAL INFORMATION.

ITEM 1.	FINANCIAL STATEMENTS.	3
	Condensed Consolidated Balance Sheets as of June 30, 2023 (Unaudited) and December 31, 2022	3
	Condensed Consolidated Statements of Operations (Unaudited) for Three and Six Months Ended June 30, 2023	4
	Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) for the Three and Six Months Ended June 30, 2023	5
	Condensed Consolidated Statements of Cash Flows (Unaudited) for the Six Months Ended June 30, 2023	6
	Notes to Condensed Consolidated Financial Statements (Unaudited)	7

ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.	32

ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.	43

ITEM 4.	CONTROLS AND PROCEDURES.	43

PART II. — OTHER INFORMATION.

ITEM 1.	LEGAL PROCEEDINGS.	45

ITEM 1A .	RISK FACTORS	45

ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.	45

ITEM 3.	DEFAULTS UPON SENIOR SECURITIES.	45

ITEM 4.	MINE SAFETY DISCLOSURES.	45

ITEM 5.	OTHER INFORMATION.	45

ITEM 6.	EXHIBITS.	46

	SIGNATURES	49

Table of Contents

PART I. FINANCIAL INFORMATION

ITEM I. FINANCIAL STATEMENTS

CATHETER PRECISION, INC. (formerly known as RA MEDICAL SYSTEMS, INC.)

Condensed Consolidated Balance Sheets

(in thousands, except per share data)

	June 30, 2023			December 31, 2022
ASSETS	(Unaudited)
Current Assets
Cash and cash equivalents	$	7,410		$	15,859
Accounts receivable, net		119			-
Inventories		59			-
Prepaid expenses and other current assets		320			977
Total current assets		7,908			16,836
Property and equipment, net		67			-
Operating lease right-of-use assets		220			-
Intangible assets, net		27,339			-
Other non-current assets		8			-
TOTAL ASSETS	$	35,542		$	16,836

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable	$	93		$	92
Accrued expenses		1,863			7,484
Current portion of operating lease liabilities		86			-
Total current liabilities		2,042			7,576
Royalties payable		9,565			-
Operating lease liabilities		144			-
Total liabilities		11,751			7,576
Commitments and contingencies (see Note 16)
Stockholders' Equity
Series A Convertible Preferred Stock, $0.0001 par value, 10,000,000 shares authorized; 7,203 and 0 shares issued and outstanding as June 30, 2023 and December 31, 2022, respectively		-			-
Series X Convertible Preferred Stock, $0.0001 par value, 15,404 shares authorized; 12,675 and 0 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively		-			-
Common stock, $0.0001 par value, 300,000,000 shares authorized; 5,367,674 and 2,161,950 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively		-			-
Additional paid-in capital		296,904			214,397
Accumulated deficit		(273,113	)		(205,137	)
Total stockholders' equity		23,791			9,260
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	35,542		$	16,836

See accompanying notes to unaudited condensed consolidated financial statements.

Table of Contents

CATHETER PRECISION, INC. (formerly known as RA MEDICAL SYSTEMS, INC.)

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(Unaudited)

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2023			2022			2023			2022

Revenues
Product sales	$	96		$	5		$	181		$	14
Cost of revenues
Product sales		7			11			17			42
Service and other		-			55			-			119
Total cost of revenues		7			66			17			161
Gross profit (loss)		89			(61	)		164			(147	)
Operating expenses
Selling, general and administrative		1,415			2,476			11,648			4,778
Research and development		134			2,396			374			5,511
Restructuring and impairment		-			3,527			-			3,527
Loss on impairment of goodwill		4,848			-			60,934			-
Total operating expenses		6,397			8,399			72,956			13,816
Operating loss		(6,308	)		(8,460	)		(72,792	)		(13,963	)
Other income, net
Change in fair value of royalty payable		4,617			-			4,617			-
Interest income		119			-			188			-
Other (expense) income, net		(4	)		12			11			20
Total other income, net		4,732			12			4,816			20
Loss from operations before income taxes		(1,576	)		(8,448	)		(67,976	)		(13,943	)
Income taxes		-			-			-			-
Net loss	$	(1,576	)	$	(8,448	)	$	(67,976	)	$	(13,943	)
Deemed dividends from the warrant inducement offer		-			-			(800	)		-
Net loss attributable to common stockholders	$	(1,576	)	$	(8,448	)	$	(68,776	)	$	(13,943	)
Net loss per share attributable to common stockholders, basic and diluted	$	(0.29	)	$	(13.07	)	$	(16.97	)	$	(0.03	)
Weighted average common shares used in computing net loss per share, basic and diluted		5,364,383			646,361			4,052,700			525,924

See accompanying notes to unaudited condensed consolidated financial statements.

Table of Contents

CATHETER PRECISION, INC. (formerly known as RA MEDICAL SYSTEMS, INC.)

Condensed Consolidated Statements of Stockholders’ Equity

For the three and six months ended June 30, 2023 and 2022

(in thousands, except per share data)

(Unaudited)

	Series A Convertible Preferred Stock				Series X Convertible Preferred Stock					Common Stock					Additional Paid-In		Accumulated			Total Stockholders'
	Shares		Amount		Shares			Amount		Shares			Amount		Capital		Deficit			Equity
Balance at December 31, 2022		—	$	—		—		$	—		2,161,288		$	—	$	214,397	$	(205,137	)	$	9,260
Common stock issued upon the exercise of options		—		—		—			—		301,746			—		179		—			179
Restricted stock awards cancelled		—		—		—			—		(363	)		—		—		—			—
Stock-based compensation		—		—		—			—		—			—		1,394		—			1,394
Issuance of Series X Convertible Preferred Stock in merger		—		—		14,650			—		—			—		82,925		—			82,925
Conversion of Series X Convertible Preferred Stock		—		—		(1,975	)		—		1,974,905			—		—		—			—
Issuance of Series A Convertible Preferred Stock in connection with private placement, net		7,203		—		—			—		497,908			—		7,360		—			7,360
Warrants exercised (see Note 12)		—		—		—			—		331,608			—		1,145		—			1,145
Net loss		—		—		—			—		—			—		—		(66,400	)		(66,400	)
Balance at March 31, 2023		7,203		—		12,675			—		5,267,092			—		307,400		(271,537	)

SEC Form 10-Q filed by Ra Medical Systems Inc.