ClearPoint Neuro Inc

Previous wording

The foundational part of our business is providing medical devices for neurosurgery applications. Our primary medical device product, the ClearPoint system, is an integrated system comprised of hardware components, disposable components, and intuitive, menu-driven software, which is in commercial use globally. The primary applications for the ClearPoint system are to target and guide the insertion of deep brain stimulation electrodes, biopsy needles, and laser catheters, as well as the infusion of pharmaceuticals into the brain. The ClearPoint system was originally designed for use in an MRI setting. In 2021, we launched the SmartFrame Array Neuro Navigation System and Software, which allow for operating room placement of the ClearPoint system, and in 2024, we released the SmartFrame OR Stereotactic System, which allows for complete procedures to be performed in the operating room. In 2022, we commercialized the ClearPoint Prism Neuro Laser Therapy System as our first therapy product offering. We have exclusive global commercialization rights to the ClearPoint Prism Neuro Laser Therapy System through our Swedish partner, CLS.

Current wording

The foundational part of our business is providing medical devices for neurosurgery applications. Our primary medical device product, the ClearPoint system, is an integrated system comprised of hardware components, disposable components, and intuitive, menu-driven software, which is in commercial use globally. The primary applications for the ClearPoint system are to target and guide the insertion of deep brain stimulation electrodes, biopsy needles, and laser catheters, as well as the delivery of pharmaceuticals into the brain. The ClearPoint system was originally designed for use in an MRI setting. In 2021, we launched the SmartFrame Array Neuro Navigation System and Software, which allow for operating room placement of the ClearPoint system, and in 2024, we released the SmartFrame OR Stereotactic System, which allows for complete procedures to be performed in the operating room. In 2022, we commercialized the ClearPoint Prism Neuro Laser Therapy System as our first therapy product offering. We have exclusive global commercialization rights to the ClearPoint Prism Neuro Laser Therapy System through our Swedish partner, CLS.

Previous wording

Substantially all our revenue for the three and six months ended June 30, 2024 and 2023 relates to (i) sales of our ClearPoint system products and related services and (ii) providing services from our customers in the biologics and drug delivery space. We have financed our operations and internal growth primarily through the sale of equity securities and the issuance of notes payable. We have incurred significant losses since our inception in 1998 as we have devoted substantial efforts to research and development. As of June 30, 2024, we had accumulated losses of $181.0 million. We may continue to incur operating losses as we expand our ClearPoint system platform, services to our pharmaceutical and other medical technology customers, and our business generally.

Current wording

Substantially all our revenue for the three and nine months ended September 30, 2024 and 2023 relates to (i) sales of our ClearPoint system products and related services and (ii) providing services to our customers in the biologics and drug delivery space. We have financed our operations and internal growth primarily through the sale of equity securities and the issuance of notes payable. We have incurred significant losses since our inception in 1998 as we have devoted substantial efforts to research and development. As of September 30, 2024, we had accumulated losses of $186.0 million. We may continue to incur operating losses as we expand our ClearPoint system platform, services to our pharmaceutical and other medical technology customers, and our business generally.

Previous wording

In 2010, we received 510(k) clearance from the FDA to market our ClearPoint system in the U.S. for general neurosurgical procedures; in February 2011 and May 2018, we also obtained CE marking for our ClearPoint system and SmartFlow cannula, respectively; and in June 2020, we obtained CE marking for version 2.0 of our ClearPoint software and our Inflexion head fixation frame. In January 2021, we received 510(k) clearance for the SmartFrame Array Neuro Navigation System. In September 2022, the ClearPoint Prism Neuro Laser Therapy System, for which we have exclusive global rights to commercialize, received 510(k) clearance through our Swedish partner, CLS. The Prism laser represents the first therapy product we have commercialized. In January 2024, we received 510(k) clearance from the FDA for the SmartFrame OR Stereotactic System.

Current wording

In 2010, we received 510(k) clearance from the U.S. Food and Drug Administration (the "FDA") to market our ClearPoint system in the U.S. for general neurosurgical procedures; in February 2011 and May 2018, we also obtained CE marking for our ClearPoint system and SmartFlow cannula, respectively; and in June 2020, we obtained CE marking for version 2.0 of our ClearPoint software and our Inflexion head fixation frame. In January 2021, we received 510(k) clearance for the SmartFrame Array Neuro Navigation System. In September 2022, the ClearPoint Prism Neuro Laser Therapy System, for which we have exclusive global rights to commercialize, received 510(k) clearance through our Swedish partner, CLS. The Prism laser represents the first therapy product we have commercialized. In January 2024, we received 510(k) clearance from the FDA for the SmartFrame OR Stereotactic System.

Previous wording

Future revenue from sales of our ClearPoint platform products and services is difficult to predict and may not be sufficient to offset our continuing research and development expenses and selling, general and administrative expenses.

Current wording

Future revenue from sales of products and services is difficult to predict and may not be sufficient to offset our continuing research and development expenses and selling, general and administrative expenses.

Previous wording

Generating recurring revenue from the sale of products is an important part of our business model for our ClearPoint system. Our product revenue was approximately $4.9 million and $8.6 million for the three and six months ended June 30, 2024, respectively, and was primarily related to our ClearPoint system. Our service and other revenue was approximately $2.9 million and $6.9 million for the three and six months ended June 30, 2024, respectively, of which 91% and 93%, respectively, is related to the biologics and drug delivery service line.

Current wording

Generating recurring revenue from the sale of products is an important part of our business model for our ClearPoint system. Our product revenue was approximately $5.5 million and $14.1 million for the three and nine months ended September 30, 2024, respectively. Our service and other revenue was approximately $2.6 million and $9.6 million for the three and nine months ended September 30, 2024, respectively, of which 89% and 92%, respectively, is related to the biologics and drug delivery service line.

Previous wording

Underlying the revenue from sales of products and services to our biologics and drug delivery customers is the number of direct customers and end users of our products and/or services (“Partners”). Our Partners consist of pharmaceutical and biotech companies, academic institutions, or customer-sponsored contract research organizations that are developing methods to deliver a wide variety of molecules, genes or proteins to targeted brain tissue or structures that would need to bypass the blood-brain barrier for the treatment of a variety of disorders. This is a novel area in which commercialization must be preceded by FDA-mandated clinical trials, which are expensive and time consuming to conduct, and for which the commercial success is uncertain, pending, in part, on the outcome of those trials. While our revenue from sales of products and services to our biologics and drug delivery customers is indicative of growth, the number of Partner relationships is also of importance as we recognize the possibility that some Partners’ research will reach commercial success, and others may not. To the extent our Partners achieve commercial success, our expectation is that we will share in such success through our Partners’ use of our products and services in their delivery of therapies. At June 30, 2024, we had more than 50 Partners, which is similar to the number of Partners as of the same date in 2023.

Current wording

Underlying the revenue from sales of products and services to our biologics and drug delivery customers is the number of direct customers and end users of our products and/or services ("Partners"). Our Partners consist of pharmaceutical and biotech companies, academic institutions, and customer-sponsored contract research organizations that are developing methods to deliver a wide variety of molecules, genes or proteins to targeted brain tissue or structures that would need to bypass the blood-brain barrier for the treatment of a variety of disorders. This is a novel area in which commercialization must be preceded by FDA-mandated clinical trials, which are expensive and time consuming to conduct, and for which the commercial success is uncertain, pending, in part, the outcome of those trials. While our revenue from sales of products and services to our biologics and drug delivery customers is indicative of growth, the number of Partner relationships is also of importance as we recognize the possibility that some Partners’ research will reach commercial success, and others may not. To the extent our Partners achieve commercial success, our expectation is that we will share in such success through our Partners’ use of our products and services in their delivery of therapies. At September 30, 2024, we had more than 50 Partners, which is similar to the number of Partners as of the same date in 2023.

Previous wording

There have been no significant changes in our critical accounting policies and estimates during the six months ended June 30, 2024, as compared to the critical accounting policies and estimates described in our 2023 Form 10-K.

Current wording

There have been no significant changes in our critical accounting policies and estimates during the nine months ended September 30, 2024, as compared to the critical accounting policies and estimates described in our 2023 Form 10-K.

Previous wording

Revenue. Total revenue was $7.9 million for the three months ended June 30, 2024, and $6.0 million for the three months ended June 30, 2023, which represents an increase of $1.9 million, or 32%.

Current wording

Revenue. Total revenue was $8.1 million for the three months ended September 30, 2024, and $5.8 million for the three months ended September 30, 2023, which represents an increase of $2.4 million, or 41%.

Previous wording

Biologics and drug delivery revenue, which includes sales of disposable products and services related to customer-sponsored preclinical and clinical trials, increased 28% to $4.3 million for the three months ended June 30, 2024, from $3.4 million for the same period in 2023. This increase is attributable to a $1.3 million increase in product revenue as a result of increased demand for disposables as multiple partners progress in their trials, partially offset by a decrease of $0.4 million in service and other revenue, during the three months ended June 30, 2024, compared to the same period in 2023.

Current wording

Biologics and drug delivery revenue, which includes sales of services and disposable products related to customer-sponsored preclinical and clinical trials utilizing our products, increased 27% to $4.4 million for the three months ended September 30, 2024, from $3.5 million for the same period in 2023. Our overall revenue growth is attributable to a $1.6 million increase in product revenue resulting from higher demand for disposables as multiple partners progress in their trials, partially offset by a decrease of $0.7 million in service and other revenue due to a reduction in the number of preclinical studies performed, during the three months ended September 30, 2024, compared to the same period in 2023.

Previous wording

Neurosurgery navigation and therapy revenue, which primarily consists of disposable product commercial sales related to cases utilizing the ClearPoint system, increased 17% to $2.6 million for the three months ended June 30, 2024, from $2.2 million for the same period in 2023. The increase is driven by higher product revenue of $0.8 million as a result of increased case volume, new capital placements, and new product offerings (SmartFrame OR and Prism) during the three months ended June 30, 2024, compared to the same period in 2023. This is partially offset by a decrease of $0.4 million in service and other revenue primarily as a result of pausing a co-development program with one of our Brain Computer Interface partners, during the three months ended June 30, 2024, compared to the same period in 2023.

Current wording

Neurosurgery navigation and therapy revenue, which primarily consists of disposable product commercial sales related to cases utilizing the ClearPoint system, increased 49% to $2.9 million for the three months ended September 30, 2024, from $1.9 million for the same period in 2023. The increase is driven by higher product revenue of $1.0 million resulting from newly activated accounts, increased case count, and new product offerings, including the SmartFrame OR and Prism Laser Therapy, during the three months ended September 30, 2024, compared to the same period in 2023.

Previous wording

Capital equipment and software revenue, consisting of sales of ClearPoint reusable hardware and software and of related services, increased 148% to $0.9 million for the three months ended June 30, 2024, from $0.4 million for the same period in 2023 due to an increase in the placements of ClearPoint navigation capital and software and Prism laser units.

Current wording

Capital equipment and software revenue, consisting of sales of ClearPoint reusable hardware and software and related services, increased 133% to $0.8 million for the three months ended September 30, 2024, from $0.4 million for the same period in 2023 due to an increase in the placements of ClearPoint navigation capital equipment and software and Prism laser units.

Previous wording

Cost of Revenue and Gross Profit. Cost of revenue was $2.9 million, resulting in gross profit of $5.0 million and gross margin of 63%, for the three months ended June 30, 2024, and was $2.8 million, resulting in gross profit of $3.1 million and gross margin of 53% for the three months ended June 30, 2023. The increase in gross margin was primarily due to lower costs for the three months ended June 30, 2024 due to the transition to the new manufacturing facility, occurring in 2023, and higher volumes for the three months ended June 30, 2024.

Current wording

Cost of Revenue and Gross Profit. Cost of revenue was $3.3 million, resulting in gross profit of $4.8 million and gross margin of 60%, for the three months ended September 30, 2024, and was $2.5 million, resulting in gross profit of $3.3 million and gross margin of 57% for the three months ended September 30, 2023. The increase in gross margin was primarily due to lower costs for the three months ended September 30, 2024 due to the transition to the new manufacturing facility, occurring in 2023, and higher volumes for the three months ended September 30, 2024.

Previous wording

Research and Development Costs. Research and development costs were $3.1 million for the three months ended June 30, 2024, compared to $3.6 million for the same period in 2023, a decrease of $0.5 million, or 13%. The decrease was due primarily to lower product and software development costs of $1.0 million as a result of reprioritization of certain research and development initiatives, partially offset by increases in personnel costs of $0.3 million and trial costs of $0.2 million.

Current wording

Research and Development Costs. Research and development costs were $3.3 million for the three months ended September 30, 2024, compared to $2.4 million for the same period in 2023, an increase of $0.9 million, or 36%. The increase was due primarily to higher personnel costs and product and software development costs, each in the amount of $0.5 million, partially offset by lower trial costs of $0.1 million.

Previous wording

Sales and Marketing Expenses. Sales and marketing expenses were $3.8 million for the three months ended June 30, 2024, compared to $3.5 million for the same period in 2023, an increase of $0.4 million, or 10%. This increase was due primarily to higher travel costs of $0.3 million, increased personnel costs of $0.2 million, including share-based compensation, resulting from increases in headcount, partially offset by lower marketing expenses of $0.1 million.

Current wording

Sales and Marketing Expenses. Sales and marketing expenses were $3.5 million for the three months ended September 30, 2024, compared to $2.8 million for the same period in 2023, an increase of $0.7 million, or 25%. This increase was due primarily to higher personnel costs, including share-based compensation, of $0.6 million resulting from increases in headcount, and increased travel costs of $0.1 million.

Previous wording

General and Administrative Expenses. General and administrative expenses were $5.6 million for the six months ended June 30, 2024, compared to $6.1 million for the same period in 2023, a decrease of $0.5 million, or 9%. This decrease was due primarily to lower bad debt expense of $0.9 million mainly as a result of subsequent recoveries, partially offset by higher personnel costs and share-based compensation of $0.4 million.

Current wording

General and Administrative Expenses. General and administrative expenses were $3.2 million for the three months ended September 30, 2024, compared to $2.9 million for the same period in 2023, an increase of $0.3 million, or 9%. This increase was due primarily to higher personnel costs and share-based compensation of $0.4 million, higher occupancy costs of $0.2 million, and higher professional fees of $0.1 million, partially offset by lower bad debt expense of $0.5 million mainly as a result of subsequent recoveries.

Previous wording

Interest Income (Expense). Net interest income was $0.3 million for the three months ended June 30, 2024, compared to $0.1 million for the same period in 2023, as a result of increased investment in U.S. Government debt securities stemming from the capital raise in March 2024.

Current wording

Interest Income (Expense). Net interest income was $0.2 million for the three months ended September 30, 2024, compared to $0.1 million for the same period in 2023, as a result of increased investment in U.S. Government debt securities stemming from the capital raise in March 2024 as well as lower interest expense due to the early repayment of the First Closing Note.

Previous wording

Revenue. Total revenue was $15.5 million for the six months ended June 30, 2024, and $11.4 million for the six months ended June 30, 2023, which represents an increase of $4.1 million, or 36%.

Current wording

Revenue. Total revenue was $23.6 million for the nine months ended September 30, 2024, and $17.1 million for the nine months ended September 30, 2023, which represents an increase of $6.5 million, or 38%.

Previous wording

Biologics and drug delivery revenue, which includes sales of disposable products and services related to customer-sponsored preclinical and clinical trials, increased 43% to $8.6 million for the six months ended June 30, 2024, from $6.0 million for the same period in 2023. This increase is attributable to a $1.3 million increase in service and other revenue related to new preclinical trials and service agreements entered into with our Partners during the six months ended June 30, 2024 and $1.3 million increase in product revenue as a result of increased demand for disposables as multiple partners progress in their trials, compared to the same period in 2023.

Current wording

Biologics and drug delivery revenue, which includes sales of services and disposable products related to customer-sponsored preclinical and clinical trials utilizing our products, increased 37% to $13.1 million for the nine months ended September 30, 2024, from $9.5 million for the same period in 2023. Our overall revenue growth is attributable to a $2.9 million increase in product revenue resulting from higher demand for disposables as multiple partners progress in their trials, and a $0.6 million increase in service and other revenue related to new preclinical trials and service agreements entered into with our Partners during the nine months ended September 30, 2024, as compared to the same period in 2023.

Previous wording

Neurosurgery navigation and therapy revenue, which primarily consists of disposable product commercial sales related to cases utilizing the ClearPoint system, remained relatively consistent at approximately $4.5 million for the six months ended June 30, 2024 and 2023. Product revenue increased 23%, or $0.8 million, as a result of increased case volume, new capital placements, and new product offerings (SmartFrame OR and Prism) during the six months ended June 30, 2024, compared to the same period in 2023. This was offset by a decrease in service and other revenue of $0.9 million primarily as a result of pausing a co-development program with one of our Brain Computer Interface partners.

Current wording

Neurosurgery navigation and therapy revenue, which primarily consists of disposable product commercial sales related to cases utilizing the ClearPoint system, increased 14% to $7.4 million for the nine months ended September 30, 2024, from $6.5 million for the same period in 2023. Product revenue increased 33%, or $1.8 million, resulting from newly activated accounts, increased case count, and new product offerings, including the SmartFrame OR and Prism Laser Therapy, during the nine months ended September 30, 2024, compared to the same period in 2023. This was partially offset by a decrease in service and other revenue of $0.9 million primarily as a result of pausing a co-development program with one of our Brain Computer Interface partners.

Previous wording

Capital equipment and software revenue, consisting of sales of ClearPoint reusable hardware and software and of related services, increased 202% to $2.3 million for the six months ended June 30, 2024, from $0.8 million for the same period in 2023 due to an increase in the placements of ClearPoint navigation capital and software and Prism laser units.

Current wording

Capital equipment and software revenue, consisting of sales of ClearPoint reusable hardware and software and related services, increased 180% to $3.2 million for the nine months ended September 30, 2024, from $1.1 million for the same period in 2023 due to an increase in the placements of ClearPoint navigation capital equipment and software and Prism laser units.

Previous wording

Cost of Revenue and Gross Profit. Cost of revenue was $6.0 million, resulting in gross profit of $9.5 million and gross margin of 61%, for the six months ended June 30, 2024, and was $5.1 million, resulting in gross profit of $6.3 million and gross margin of 56% for the six months ended June 30, 2023. The increase in gross margin was primarily due to lower costs for the six months ended June 30, 2024 due to the transition to the new manufacturing facility, occurring in 2023, and higher volumes for the six months ended June 30, 2024.

Current wording

Cost of Revenue and Gross Profit. Cost of revenue was $9.3 million, resulting in gross profit of $14.4 million and gross margin of 61%, for the nine months ended September 30, 2024, and was $7.5 million, resulting in gross profit of $9.6 million and gross margin of 56% for the nine months ended September 30, 2023. The increase in gross margin was primarily due to lower costs for the nine months ended September 30, 2024 due to the transition to the new manufacturing facility, occurring in 2023, and higher volumes for the nine months ended September 30, 2024.

Previous wording

Research and Development Costs. Research and development costs were $5.7 million for the six months ended June 30, 2024, compared to $6.6 million for the same period in 2023, a decrease of $0.9 million, or 13%. The decrease was due primarily to lower product and software development costs of $1.1 million as a result of reprioritization of certain research and development initiatives, partially offset by increased personnel costs of $0.2 million.

Current wording

Research and Development Costs. Research and development costs were relatively flat at $9.1 million for the nine months ended September 30, 2024 and 2023. Personnel costs, including share-based compensation, were higher for the nine months ended September 30, 2024 by $0.7 million as compared to the same period in 2023. This was offset by lower product and software development costs of $0.7 million as a result of reprioritization of certain research and development initiatives.

Previous wording

Sales and Marketing Expenses. Sales and marketing expenses were $7.1 million for the six months ended June 30, 2024, compared to $6.4 million for the same period in 2023, an increase of $0.7 million, or 11%. This increase was due primarily to higher personnel costs of $0.5 million, including share-based compensation, resulting from increases in headcount, and increased travel costs of $0.3 million, partially offset by lower marketing expenses of $0.1 million.

Current wording

Sales and Marketing Expenses. Sales and marketing expenses were $10.7 million for the nine months ended September 30, 2024, compared to $9.2 million for the same period in 2023, an increase of $1.4 million, or 15%. This increase was due primarily to higher personnel costs, including share-based compensation, of $1.1 million resulting from increases in headcount, and increased travel costs of $0.3 million.

Previous wording

General and Administrative Expenses. General and administrative expenses were $2.8 million for the three months ended June 30, 2024, compared to $3.2 million for the same period in 2023, a decrease of $0.4 million, or 13%. This decrease was due primarily to lower bad debt expense of $0.6 million mainly as a result of subsequent recoveries, partially offset by higher personnel costs and share-based compensation of $0.2 million.

Current wording

General and Administrative Expenses. General and administrative expenses were $8.8 million for the nine months ended September 30, 2024, compared to $9.0 million for the same period in 2023, a decrease of $0.3 million, or 3%. This decrease was due primarily to lower bad debt expense of $1.4 million mainly as a result of subsequent recoveries, partially offset by higher personnel costs and share-based compensation of $0.8 million and higher occupancy costs of $0.3 million.

Previous wording

Interest Income (Expense). Net interest income was $0.4 million for the six months ended June 30, 2024, compared to $0.2 million for the same period in 2023, as a result of increased investment in U.S. Government debt securities stemming from the capital raise in March 2024.

Current wording

Interest Income (Expense). Net interest income was $0.6 million for the nine months ended September 30, 2024, compared to $0.3 million for the same period in 2023, as a result of increased investment in U.S. Government debt securities stemming from the capital raise in March 2024 as well as lower interest expense due to the early repayment of the First Closing Note.

Previous wording

We have incurred net losses since our inception, which has resulted in a cumulative deficit at June 30, 2024 of $181.0 million. In addition, our use of cash from operations amounted to $6.5 million for the six months ended June 30, 2024, and $13.7 million for the year ended December 31, 2023.

Current wording

We have incurred net losses since our inception, which has resulted in a cumulative deficit at September 30, 2024 of $186.0 million. In addition, our use of cash from operations amounted to $7.7 million for the nine months ended September 30, 2024, and $13.7 million for the year ended December 31, 2023.

Previous wording

Since inception, we have financed our operations principally from the sale of equity securities and the issuance of notes payable. In 2020, we issued secured convertible notes to two investors which raised gross proceeds of $25 million, of which $15 million has been converted to common stock and $10 million remains outstanding. See Note 6 to the Condensed Consolidated Financial Statements included above in Part I, Item 1 in this Quarterly Report for additional information with respect to the Outstanding First Closing Note. As discussed in Note 8, in March 2024, the Company completed a public offering of 2,653,848 shares of its common stock from which the net proceeds totaled approximately $16.2 million after deducting underwriting discounts and commissions, and other offering expenses paid by the Company.

Current wording

Since inception, we have financed our operations principally from the sale of equity securities and the issuance of notes payable. As discussed in Note 8, in March 2024, we completed a public offering of 2,653,848 shares of our common stock from which the net proceeds totaled approximately $16.2 million after deducting our payment of underwriting discounts and commissions and other offering expenses.

Previous wording

As a result of these transactions and our business operations, our cash and cash equivalents totaled $32.8 million at June 30, 2024. In management’s opinion, based on our current forecasts for revenue, expense and cash flows, our existing cash and cash equivalent balances at June 30, 2024, are sufficient to support our operations and meet our obligations for at least the next twelve months.

Current wording

As a result of these transactions and our business operations, our cash and cash equivalents totaled $21.6 million at September 30, 2024. In management’s opinion, based on our current forecasts for revenue, expense and cash flows, our existing cash and cash equivalent balances at September 30, 2024, are sufficient to support our operations and meet our obligations for at least the next twelve months.

Previous wording

Cash activity for the six months ended June 30, 2024 and 2023 is summarized as follows:

Current wording

Cash activity for the nine months ended September 30, 2024 and 2023 is summarized as follows:

Previous wording

Net Cash Flows from Operating Activities. Net cash flows used in operating activities for the six months ended June 30, 2024, were $6.5 million, a decrease of $4.2 million from the six months ended June 30, 2023. This decrease was primarily due to a lower net loss of $4.1 million.

Current wording

Net Cash Flows from Operating Activities. Net cash flows used in operating activities for the nine months ended September 30, 2024, were $7.7 million, a decrease of $4.8 million from the nine months ended September 30, 2023. This decrease was due to a lower net loss of $3.9 million, and a net decrease in operating assets and liabilities of $1.1 million, partially offset by a net decrease in non-cash items of $0.2 million. The change in operating assets and liabilities is primarily due to higher accounts payable and accrued liabilities, partially offset by lower deferred revenue. The change in the non-cash items results primarily from recoveries in the allowance for credit losses, partially offset by higher share-based compensation expense.

Previous wording

Net Cash Flows from Investing Activities. The Company did not have any net cash flows from investing activities for the six months ended June 30, 2024. Net cash flows provided by investing activities for the six months ended June 30, 2023, were $9.4 million and consisted of proceeds from the maturities of short-term investments, partially offset primarily by equipment acquisitions related to our new manufacturing site in Carlsbad, California.

Current wording

Net cash flows provided by investing activities for the nine months ended September 30, 2023, were $9.1 million and consisted of proceeds from the maturities of short-term investments, partially offset primarily by equipment acquisitions related to our new manufacturing site in Carlsbad, California.

Previous wording

Net Cash Flows from Financing Activities. Net cash flows provided by financing activities for the six months ended June 30, 2024, consisted of proceeds, net of offering costs, of $16.2 million received from the public offering of our common stock and $0.3 million in proceeds from the issuance of common stock under the employee stock purchase plan. This is partially offset by payments of $0.3 million for taxes related to shares withheld in connection with the vesting of restricted stock awards.

Current wording

Net Cash Flows from Financing Activities. Net cash flows provided by financing activities for the nine months ended September 30, 2024, consisted of proceeds, net of offering costs, of $16.2 million received from the public offering of our common stock and $0.3 million in proceeds from the issuance of common stock under the employee stock purchase plan. This is partially offset by the repayment of the 2020 secured convertible note of $10.0 million and payments of $0.3 million for taxes related to shares withheld in connection with the vesting of restricted stock awards.

Previous wording

Net cash flows provided by financing activities for the six months ended June 30, 2023, consisted of proceeds from the issuance of common stock under the employee stock purchase plan, partially offset by payments for taxes related to shares withheld in connection with the vesting of restricted stock awards.

Current wording

Net cash flows provided by financing activities for the nine months ended September 30, 2023, consisted of proceeds from the issuance of common stock under the employee stock purchase plan, partially offset by payments for taxes related to shares withheld in connection with the vesting of restricted stock awards.