Stereotaxis Inc

Previous wording

This report includes various forward-looking statements that are subject to risks and uncertainties, many of which are beyond our control. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth in “Part II - Item 1A. Risk Factors” included in this Quarterly Report on Form 10-Q and in Part I, Item 1A, “Risk Factors,” included in our Annual Report on Form 10-K for the year ended December 31,2023, as well as various impacts related to our previously announced acquisition of Access Point Technologies, Inc. (“APT”). Forward-looking statements discuss matters that are not historical facts. Forward-looking statements include, but are not limited to, discussions regarding our operating strategy, sales and marketing strategy, regulatory strategy, industry, economic conditions, financial condition, liquidity, capital resources, results of operations, the on-going impact of the coronavirus (“COVID -19”) pandemic and our response to it or any impact of a similar pandemic, and statements relating to our recent acquisition of APT including any benefits expected from the acquisition, potential strategic implications as a result of the acquisition, and the potential for achievement of the regulatory and commercial milestones that would trigger contingent payments in the transaction. Such statements include, but are not limited to, statements preceded by, followed by, or that otherwise include the words “believe”, “expects”, “anticipates”, “intends”, “estimates”, “projects”, “can”, “could”, “may”, “would”, or similar expressions. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You should not unduly rely on these forward-looking statements, which speak only as of the date on which they are made. They give our expectations regarding the future but are not guarantees. We undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by law.

Current wording

This report includes various forward-looking statements that are subject to risks and uncertainties, many of which are beyond our control. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth in “Part II - Item 1A. Risk Factors” included in this Quarterly Report on Form 10-Q and in Part I, Item 1A, “Risk Factors,” included in our Annual Report on Form 10-K for the year ended December 31,2023, as well as various impacts related to our previously announced acquisition of Access Point Technologies EP, Inc. (“APT”). Forward-looking statements discuss matters that are not historical facts. Forward-looking statements include, but are not limited to, discussions regarding our operating strategy, sales and marketing strategy, regulatory strategy, industry, economic conditions, financial condition, liquidity, capital resources, results of operations, the on-going impact of the coronavirus (“COVID -19”) pandemic and our response to it or any impact of a similar pandemic, and statements relating to our recent acquisition of APT including any benefits expected from the acquisition, potential strategic implications as a result of the acquisition, and the potential for achievement of the regulatory and commercial milestones that would trigger contingent payments in the transaction. Such statements include, but are not limited to, statements preceded by, followed by, or that otherwise include the words “believe”, “expects”, “anticipates”, “intends”, “estimates”, “projects”, “can”, “could”, “may”, “would”, or similar expressions. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You should not unduly rely on these forward-looking statements, which speak only as of the date on which they are made. They give our expectations regarding the future but are not guarantees. We undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by law.

Previous wording

There is substantial real-world evidence and clinical literature for Robotic Magnetic Navigation in electrophysiology. Hundreds of electrophysiologists at over one hundred hospitals globally have treated over 100,000 arrhythmia patients with our robotic technology. Clinical use of our technology has been documented in over 500 clinical publications. Robotic Magnetic Navigation is designed to enable physicians to complete more complex interventional procedures with greater success and safety by providing image-guided delivery of catheters through the blood vessels and chambers of the heart to treatment sites. This is achieved using externally applied computer-controlled magnetic fields that govern the motion of the working tip of the catheter, resulting in improved navigation. The more flexible atraumatic design of catheters driven using magnetic fields may reduce the risk of patient harm and other adverse events. Performing the procedure from a control cockpit enables physicians to complete procedures in a safe location protected from x-ray exposure, with greater ergonomics, and improved efficiency. We believe these benefits can be applicable in other endovascular indications where navigation through complex vasculature is often challenging or unsuccessful and generates significant x-ray exposure, and we are investing in research and development in these areas.

Current wording

There is substantial real-world evidence and clinical literature for Robotic Magnetic Navigation in electrophysiology. Hundreds of electrophysiologists at over one hundred hospitals globally have treated over 150,000 arrhythmia patients with our robotic technology. Clinical use of our technology has been documented in over 500 clinical publications. Robotic Magnetic Navigation is designed to enable physicians to complete more complex interventional procedures with greater success and safety by providing image-guided delivery of catheters through the blood vessels and chambers of the heart to treatment sites. This is achieved using externally applied computer-controlled magnetic fields that govern the motion of the working tip of the catheter, resulting in improved navigation. The more flexible atraumatic design of catheters driven using magnetic fields may reduce the risk of patient harm and other adverse events. Performing the procedure from a control cockpit enables physicians to complete procedures in a safe location protected from x-ray exposure, with greater ergonomics, and improved efficiency. We believe these benefits can be applicable in other endovascular indications where navigation through complex vasculature is often challenging or unsuccessful and generates significant x-ray exposure, and we are investing in research and development in these areas.

Previous wording

On July 31, 2024, the Company completed its previously announced acquisition of all the shares of capital stock of Access Point Technologies EP, Inc., a Minnesota corporation (“APT”), from APT Holding Company, Inc., a Minnesota corporation, pursuant to that certain Share Purchase Agreement, dated May 11, 2024. All consideration is payable in Stereotaxis common stock.

Current wording

On July 31, 2024, the Company completed its acquisition of all the shares of capital stock of Access Point Technologies EP, Inc., a Minnesota corporation (“APT”), from APT Holding Company, Inc., a Minnesota corporation. APT, based in Rogers, Minnesota, designs, manufactures, and commercializes a portfolio of differentiated high-quality diagnostic catheters used during cardiac ablation procedures that are commercially available across key global geographies.

Previous wording

The transaction consideration included an upfront payment of 1,486,620 shares of Company common stock issued at closing, as well as additional contingent payments of Company common stock based upon the achievement of specified product revenue and regulatory approval milestones through September 30, 2029.

Current wording

The transaction was concluded, pursuant to that certain Share Purchase Agreement, dated May 11, 2024. The transaction consideration included an upfront payment of 1,486,620 shares of Company common stock issued at closing, as well as additional contingent payments of Company common stock based upon the achievement of specified product revenue and regulatory approval milestones through September 30, 2029. All consideration is payable in Stereotaxis common stock.

Previous wording

Financial instruments that potentially subject the Company to concentration of credit risk consist of cash, cash equivalents and marketable securities. Our investments may include, at any time, a diversified portfolio of cash equivalents and short- and long-term investments in a variety of high-quality securities, including money market funds, U.S. treasury and U.S. government agency securities, corporate notes and bonds, commercial paper, non-U.S. government agency securities, and municipal notes. The Company’s exposure to any individual corporate entity is limited by policy. Deposits may exceed federally insured limits, and the Company is exposed to credit risk on deposits in the event of default by the financial institutions to the extent account balances exceed the amount insured by the Federal Deposit Insurance Corporation (FDIC). The Company closely monitors events involving limited liquidity, defaults, non-performance or other adverse developments that affect financial institutions or other companies in the financial services industry or the financial services industry generally, including Silicon Valley Bank. On March 10, 2023, Silicon Valley Bank (“SVB”), where the Company maintained accounts with a cash balance of less than 6% of the Company’s total cash, cash equivalents and marketable securities, was closed by the California Department of Financial Protection and Innovation and the FDIC was appointed as receiver. On March 12, 2023, the U.S. Department of the Treasury, Federal Reserve Board, and FDIC released a joint statement announcing that the FDIC would complete its resolution of SVB in a manner that fully protected all depositors at SVB and that depositors would have access to all of their money starting March 13, 2023. On March 26, 2023, it was announced that First-Citizens Bank & Trust Company would assume all of SVB’s deposits and loans as of March 27, 2023. During the periods presented, the Company has not experienced any losses on its deposits of cash, cash equivalents or marketable securities.

Current wording

Financial instruments that potentially subject the Company to concentration of credit risk consist of cash, cash equivalents and marketable securities. Our investments may include, at any time, a diversified portfolio of cash equivalents and short-term and long-term investments in a variety of high-quality securities, including money market funds, U.S. treasury and U.S. government agency securities, corporate notes and bonds, commercial paper, non-U.S. government agency securities, and municipal notes. The Company’s exposure to any individual corporate entity is limited by policy. Deposits may exceed federally insured limits, and the Company is exposed to credit risk on deposits in the event of default by the financial institutions to the extent account balances exceed the amount insured by the Federal Deposit Insurance Corporation (FDIC). The Company closely monitors events involving limited liquidity, defaults, non-performance or other adverse developments that affect financial institutions or other companies in the financial services industry or the financial services industry generally, including Silicon Valley Bank. On March 10, 2023, Silicon Valley Bank (“SVB”), where the Company maintained accounts with a cash balance of less than 6% of the Company’s total cash, cash equivalents and marketable securities, was closed by the California Department of Financial Protection and Innovation and the FDIC was appointed as receiver. On March 12, 2023, the U.S. Department of the Treasury, Federal Reserve Board, and FDIC released a joint statement announcing that the FDIC would complete its resolution of SVB in a manner that fully protected all depositors at SVB and that depositors would have access to all of their money starting March 13, 2023. On March 26, 2023, it was announced that First-Citizens Bank & Trust Company would assume all of SVB’s deposits and loans as of March 27, 2023. During the periods presented, the Company has not experienced any losses on its deposits of cash, cash equivalents or marketable securities.

Previous wording

Contracts related to the sale of systems typically contain separate obligations for the delivery of system(s), installation, service-type warranty, and an implied obligation to provide software enhancements if and when available for one year following installation. Revenue is recognized when the Company transfers control to the customer, which is generally at the point when acceptance occurs that indicates customer acknowledgment of delivery or installation, depending on the terms of the arrangement. Revenue from service-type warranties and the implied obligation to deliver software enhancements if and when available is included in Other Recurring Revenue and is recognized ratably typically over the first year following installation of the system as the customer receives the service-type warranty and right to software updates throughout the period. The Company’s system contracts generally do not provide a right of return. Systems may be covered by aone-year assurance-type warranty in lieu of a service-type warranty. Assurance-type warranty costs were less than $0.1 million for the six months ended June 30, 2024, and 2023.

Current wording

Contracts related to the sale of systems typically contain separate obligations for the delivery of system(s), installation, service-type warranty, and an implied obligation to provide software enhancements if and when available for one year following installation. Revenue is recognized when the Company transfers control to the customer, which is generally at the point when acceptance occurs that indicates customer acknowledgment of delivery or installation, depending on the terms of the arrangement. Revenue from service-type warranties and the implied obligation to deliver software enhancements if and when available is included in Other Recurring Revenue and is recognized ratably typically over the first year following installation of the system as the customer receives the service-type warranty and right to software updates throughout the period. The Company’s system contracts generally do not provide a right of return. Systems may be covered by a one-year assurance-type warranty in lieu of a service-type warranty. Assurance-type warranty costs were less than $0.1 million for the nine months ended September 30, 2024, and approximately $0.1 million for the nine months ended September 30, 2023.

Previous wording

Revenue from sales of disposable products is recognized when control is transferred to the customers, which generally occurs at the time of shipment, but can also occur at the time of delivery depending on the customer arrangement. Disposable products are covered by an assurance type warranty that provides for the return of defective products. Warranty costs were not material for the six months ended June 30, 2024, and 2023.

Current wording

Revenue from sales of disposable products is recognized when control is transferred to the customers, which generally occurs at the time of shipment, but can also occur at the time of delivery depending on the customer arrangement. Disposable products are covered by an assurance type warranty that provides for the return of defective products. Warranty costs were not material for the nine months ended September 30, 2024, and 2023.

Previous wording

Revenue. Revenue decreased from $14.4 million for the six months ended June 30, 2023, to $11.4 million for the six months ended June 30, 2024, a decrease of approximately 21%. Revenue from the sales of systems decreased from $5.1 million for the six months ended June 30, 2023, to $2.9 million for the six months ended June 30, 2024, driven by decreased system sales volumes in the current year period. Revenue from sales of disposable interventional devices, service and accessories decreased to $8.5 million for the six months ended June 30, 2024, from $9.3 million for the six months ended June 30, 2023, a decrease of approximately 8%. The decrease was primarily driven by decreased service revenue in the current year period.

Current wording

Revenue. Revenue increased from $7.8 million for the three months ended September 30, 2023, to $9.2 million for the three months ended September 30, 2024, an increase of 18%. Revenue from the sales of systems increased to $4.4 million for the three months ended September 30, 2024, from $3.5 million for the three months ended September 30, 2023, driven by increased system sales volumes in the current year period. Revenue from sales of disposable interventional devices, service, and accessories increased to approximately $4.8 million for the three months ended September 30, 2024, from $4.3 million for the three months ended September 30, 2023, an increase of approximately 13%. The increase was primarily driven by an increase in sales of magnetically enabled devices and the two month impact of post-acquisition non-magnetic disposable device sales recorded in the current year period.

Previous wording

Cost of Revenue. Cost of revenue decreased from $3.7 million for the three months ended June 30, 2023, to $1.2 million for the three months ended June 30, 2024, a decrease of approximately 68%. As a percentage of our total revenue, overall gross margin increased to 74% for the three months ended June 30, 2024, from 53% for the three months ended June 30, 2023, primarily due to changes in product mix. Cost of revenue for systems sold decreased from $2.7 million for the three months ended June 30, 2023, to $0.2 million for the three months ended June 30, 2024, driven by decreased system sales volumes in the current year period. Gross margin for systems was $0.6 million for the three months ended June 30, 2023, compared to less than $0.1 million for the three months ended June 30, 2024. Cost of revenue for disposables, service, and accessories remained consistent at $1.0 million for the three months ended June 30, 2023, and 2024. Gross margin for disposables, service, and accessories was 76% for the three months ended June 30, 2024, compared to 79% for the three months ended June 30, 2023. The decrease was driven primarily by decreased service revenue in the current year period.

Current wording

Cost of Revenue. Cost of revenue increased from $3.7 million for the three months ended September 30, 2023, to $5.1 million for the three months ended September 30, 2024, an increase of approximately 36%. As a percentage of our total revenue, overall gross margin decreased to 45% for the three months ended September 30, 2024, from 52% for the three months ended September 30, 2023, primarily due to changes in product mix. Cost of revenue for systems sold increased from $2.9 million for the three months ended September 30, 2023, to $3.7 million for the three months ended September 30, 2024, driven by increased system sales volumes in the current year period. Gross margin for systems was $0.6 million for the three months ended September 30, 2023, compared to $0.7 million for the three months ended September 30, 2024. Cost of revenue for disposables, service, and accessories increased from $0.8 million for the three months ended September 30, 2023, to $1.4 million for the three months ended September 30, 2024. Gross margin for disposables, service, and accessories was 71% for the three months ended September 30, 2024, compared to 80% for the three months ended September 30, 2023. Gross margin for disposables, service, and accessories was depressed by acquisition related accounting which required the valuation of acquired finished good inventory to fair value and by higher expenses incurred under service contracts in the current period.

Previous wording

Research and Development Expenses. Research and development expenses decreased from $2.6 million for the three months ended June 30, 2023, to $2.3 million for the three months ended June 30, 2024, a decrease of approximately 14%. This decrease was primarily driven by the reversal of an accrued regulatory license fee of approximately $0.5 million and decreased headcount costs offset slightly by project timing, including regulatory fees, in the current year period.

Current wording

Research and Development Expenses. Research and development expenses decreased from $2.7 million for the three months ended September 30, 2023, to $2.5 million for the three months ended September 30, 2024, a decrease of approximately 8%. This decrease was primarily driven by project timing in the current year period.

Previous wording

Sales and Marketing Expenses. Sales and marketing expenses remained consistent at $3.3 million for the three months ended June 30, 2023, and 2024.

Current wording

Sales and Marketing Expenses. Sales and marketing expenses slightly increased from $3.1 million for the three months ended September 30, 2023, to $3.2 million for the three months ended September 30, 2024, an increase of approximately 2%. The increase was primarily driven by third party commissions generated from new acquisition related sales channels.

Previous wording

General and Administrative Expenses. General and administrative expenses include finance, information systems, legal, and general management. General and administrative expenses increased from $7.1 million for the six months ended June 30, 2023, to $7.2 million for the six months ended June 30, 2024, an increase of approximately 2%. This increase was primarily driven by higher administrative expenses and professional service fees in the current period.

Current wording

General and Administrative Expenses. General and administrative expenses include finance, information systems, legal, general management, and the quarterly gain or loss associated with the remeasurement of the acquisition related contingent consideration. General and administrative expenses increased from $3.9 million for the three months ended September 30, 2023, to $4.8 million for the three months ended September 30, 2024, an increase of approximately 23%. The increase was primarily driven by the remeasurement of the contingent consideration.

Previous wording

Interest Income (Expense). Net interest income was approximately $0.3 million for the three months ended June 30, 2023, compared to $0.2 million for the three months ended June 30, 2024. The decrease was driven by lower invested balances in the current year period.

Current wording

Interest Income (Expense). Net interest income was approximately $0.3 million for the three months ended September 30, 2023, compared to $0.2 million for the three months ended September 30, 2024. The decrease was driven by lower invested balances and lower interest rates in the current year period.

Previous wording

Revenue. Revenue decreased from $7.9 million for the three months ended June 30, 2023, to $4.5 million for the three months ended June 30, 2024, a decrease of 43%. Revenue from the sales of systems decreased to $0.2 million for the three months ended June 30, 2024, from $3.3 million for the three months ended June 30, 2023, driven by decreased system sales volumes in the current year period. Revenue from sales of disposable interventional devices, service, and accessories decreased to approximately $4.3 million for the three months ended June 30, 2024, from $4.6 million for the three months ended June 30, 2023, a decrease of approximately 6%. The decrease was primarily driven by decreased service revenue in the current year period.

Current wording

Revenue. Revenue decreased from $22.2 million for the nine months ended September 30, 2023, to $20.6 million for the nine months ended September 30, 2024, a decrease of approximately 7%. Revenue from the sales of systems decreased from $8.7 million for the nine months ended September 30, 2023, to $7.2 million for the nine months ended September 30, 2024, driven by decreased system sales volumes in the current year period. Revenue from sales of disposable interventional devices, service and accessories decreased to $13.3 million for the nine months ended September 30, 2024, from $13.5 million for the nine months ended September 30, 2023, a decrease of approximately 1%. The decrease was primarily driven by decreased service revenue in the current year period partially offset by higher sales of magnetically enabled disposables devices and the two months impact of post-acquisition non-magnetic disposable device sales recorded in the current year period.

Previous wording

Cost of Revenue. Cost of revenue decreased from $6.3 million for the six months ended June 30, 2023, to $4.1 million for the six months ended June 30, 2024, a decrease of approximately 35%. As a percentage of our total revenue, overall gross margin increased to 64% for the six months ended June 30, 2024, from 56% for the six months ended June 30, 2023, primarily due to changes in product mix. Cost of revenue for systems sold decreased from $4.4 million for the six months ended June 30, 2023, to $2.1 million for the six months ended June 30, 2024, driven by decreased system sales volumes in the current year period. Gross margin for systems was $0.7 million for the six months ended June 30, 2023, compared to $0.8 million for the six months ended June 30, 2024. Cost of revenue for disposables, service, and accessories increased from $1.9 million for the six months ended June 30, 2023, to $2.0 million for the six months ended June 30, 2024, driven by higher expenses incurred under service contracts in the current period. Gross margin for disposables, service and accessories was 79% for the six months ended June 30, 2023, compared to 76% for the six months ended June 30, 2024. The decrease was driven primarily by decreased service revenue in the current year period.

Current wording

Cost of Revenue. Cost of revenue decreased from $10.1 million for the nine months ended September 30, 2023, to $9.2 million for the nine months ended September 30, 2024, a decrease of approximately 9%. As a percentage of our total revenue, overall gross margin remained consistent at 55% for the nine months ended September 30, 2024, and 2023. Cost of revenue for systems sold decreased from $7.3 million for the nine months ended September 30, 2023, to $5.8 million for the nine months ended September 30, 2024, driven by decreased system sales volumes in the current year period. Gross margin for systems was $1.4 million for the nine months ended September 30, 2023, compared to $1.5 million for the nine months ended September 30, 2024. Cost of revenue for disposables, service, and accessories increased from $2.8 million for the nine months ended September 30, 2023, to $3.4 million for the nine months ended September 30, 2024, driven by acquisition related accounting which required the valuation of acquired finished good inventory to fair value and higher expenses incurred under service contracts in the current period. Gross margin for disposables, service and accessories was 79% for the nine months ended September 30, 2023, compared to 74% for the nine months ended September 30, 2024. The decrease was driven primarily by decreased service revenue in the current year period and acquisition related accounting requiring the valuation of acquired finished inventory at fair value.

Previous wording

Research and Development Expenses. Research and development expenses decreased from $5.4 million for the six months ended June 30, 2023, compared to $4.5 million for the six months ended June 30, 2024, a decrease of 16%. This decrease was primarily driven by the reversal of an accrued regulatory license fee of approximately $0.5 million and decreased headcount costs in the current year period.

Current wording

Research and Development Expenses. Research and development expenses decreased from $8.1 million for the nine months ended September 30, 2023, compared to $7.0 million for the nine months ended September 30, 2024, a decrease of 14%. This decrease was primarily driven by the reversal of an accrued regulatory license fee, decreased headcount and project timing in the current year period.

Previous wording

Sales and Marketing Expenses. Sales and marketing expenses decreased from $6.5 million for the six months ended June 30, 2023, to $6.3 million for the six months ended June 30, 2024, a decrease of approximately 3%. This decrease was primarily due to lower headcount expenses in the current year period.

Current wording

Sales and Marketing Expenses. Sales and marketing expenses decreased from $9.6 million for the nine months ended September 30, 2023, to $9.5 million for the nine months ended September 30, 2024, a decrease of approximately 1%. This decrease was primarily due to lower headcount expenses partially offset by third party commissions generated from new acquisition related sales channels in the current year period.

Previous wording

General and Administrative Expenses. General and administrative expenses include finance, information systems, legal, and general management. General and administrative expenses increased from $3.5 million for the three months ended June 30, 2023, to $3.8 million for the three months ended June 30, 2024, an increase of approximately 8%. This increase was primarily driven by higher administrative expenses and professional service fees in the current period.

Current wording

General and Administrative Expenses. General and administrative expenses include finance, information systems, legal, general management, and the quarterly gain or loss associated with the remeasurement of the acquisition related contingent consideration. General and administrative expenses increased from $11.0 million for the nine months ended September 30, 2023, to $12.1 million for the nine months ended September 30, 2024, an increase of approximately 10%. This increase was primarily driven by the remeasurement of the contingent consideration, and to a lesser extent by higher administrative expenses and professional service fees in the current period.

Previous wording

Interest Income (Expense). Net interest income was approximately $0.6 million for the six months ended June 30, 2023, compared to $0.4 million for the six months ended June 30, 2024. The decrease was driven by lower invested balances in the current year period.

Current wording

Interest Income (Expense). Net interest income was approximately $0.8 million for the nine months ended September 30, 2023, compared to $0.6 million for the nine months ended September 30, 2024. The decrease was driven by lower invested balances and declining interest rates in the current year period.

Previous wording

As of June 30, 2024, we had $15.2 million of cash and cash equivalents, inclusive of restricted cash. We had working capital of $15.8 million as of June 30, 2024, compared to $20.0 million as of December 31, 2023.

Current wording

As of September 30, 2024, we had $11.0 million of cash and cash equivalents, inclusive of restricted cash. We had working capital of $8.1 million as of September 30, 2024, compared to $20.0 million as of December 31, 2023.

Previous wording

The following table summarizes our cash flow by operating, investing and financing activities for the six months ended June 30, 2024, and 2023 (in thousands):

Current wording

The following table summarizes our cash flow by operating, investing and financing activities for the nine months ended September 30, 2024, and 2023 (in thousands):

Previous wording

Net cash used in operating activities. We used approximately $5.4 million and $5.7 million of cash for operating activities during the six months ended June 30, 2024, and 2023, respectively. The decrease in cash used in operating activities was driven by changes in working capital.

Current wording

Net cash used in operating activities. We used approximately $9.7 million and $6.7 million of cash for operating activities during the nine months ended September 30, 2024, and 2023, respectively. The increase in cash used in operating activities was driven by changes in working capital.

Previous wording

Net cash (used in) provided by investing activities. We used less than $0.1 million and generated approximately $19.8 million of cash during the six months ended June 30, 2024, and 2023, respectively. The cash used during the six months ended June 30, 2024, was for the purchase of equipment. The cash generated during the six months ended June 30, 2023, was from proceeds received from the maturity of short-term investments.

Current wording

Net cash provided by investing activities. We generated approximately $0.1 million and $19.8 million of cash during the nine months ended September 30, 2024, and 2023, respectively. The cash generated during the nine months ended September 30, 2024, was from the acquisition of Access Point Technologies EP, Inc. and during the nine months ended September 30, 2023, was from proceeds received from the maturity of short-term investments.

Previous wording

Net cash provided by financing activities. We generated less than $0.1 million of cash from financing activities during the six months ended June 30, 2024, and 2023. The cash generated in both periods was driven by the proceeds from issuance of stock from the exercise of options, net of issuance costs, and from our employee stock purchase program.

Current wording

Net cash provided by financing activities. We generated approximately $0.1 million of cash from financing activities during the nine months ended September 30, 2024, and 2023. The cash generated in both periods was driven by the proceeds from issuance of stock from the exercise of options, net of issuance costs, and from our employee stock purchase program.