Good morning. Thank you for joining us for Stereotaxis' Second Quarter 2019 Earnings Conference Call. Certain statements during the conference call and the question-and-answer period to follow may relate to future events, expectations and, as such, constitute forward-looking statements within the meaning of Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the company in the future to be materially different from statements that the company's executives may make today. These risks described in detail in our public filings with the Securities and Exchange Commission, including our latest periodic report on Form 10-K or 10-Q. We assume no duty to update these statements. [Operator Instructions] As a reminder, today's call is being recorded. It is now my pleasure to turn the floor over to your host, David Fischel, Chairman and CEO of Stereotaxis.

Thank you, operator, and good morning, everyone. I'm joined today by Marty Stammer, our Chief Financial Officer. We shared 2 press releases this morning: one on our quarterly results and the second on the $25 million equity financing. We look forward to discussing both in today's remarks. Our last earnings call took place at the start of the Heart Rhythm Society conference, where we were excited to share our innovation strategy and accomplishments. 3 months since then have been an amazingly energetic period. We've had the opportunity to engage with dozens upon dozens of electrophysiologists, hospital administrators and industry partners. Many visited our headquarters to view our Genesis robot and Stereotaxis Imaging systems first hand. The broad enthusiastic response validates that our innovation and strategic decisions were sound. Our plan is medically and commercially attractive. We are confident in our expectation for significant revenue growth in the years ahead. We have been busy readying ourselves for broad commercial launch of the Genesis robotic system. Internally, this is in -- this has involved preparing the right marketing and installation materials, training our sales teams, optimizing various aspects of product performance and working to ensure a smooth supply chain and inventory of system components. In Europe, where we have regulatory clearance for the full robotic lab solution, including Genesis and Stereotaxis Imaging, we've begun engaging with existing hospital customers on replacement projects and with new potential customers on building robotic EP labs. In the U.S., we are advancing towards regulatory approval, ensuring that customers are aware of our innovation strategy and can plan accordingly. A purchase of a robotic system by a hospital requires multiple layers of hospital approval, lengthy contracts, coordination of construction schedules with local contractors, and in Europe, often a public tender submission. While there is a lot that…

Thanks, David, and good morning, everyone. Revenue for the second quarter of 2019 totaled $6.8 million compared to $7.6 million in the prior year second quarter. This decrease was primarily due to reduced service revenue from system moves as well as certain inactive accounts that have aged and no longer maintain active service contracts, partially offset by a modest increase in procedure volume compared to the prior year second quarter. Gross margin in the quarter was 83% of revenue, consistent with the 82% reported in the second quarter of 2018. Operating expenses in the second quarter of $7.1 million increased from $6.8 million in the prior year quarter. The increase in operating expenses reflects significantly increased investment in research and development, with reduced selling, general and administrative expenses. Operating loss and net loss in the second quarter were $1.5 million and $1.4 million, respectively, compared to $600,000 for both in 2018. Negative free cash flow for the quarter was $500,000. This cash utilization is consistent with our guidance on our previous call. And without considering today's financing, we would have reiterated our guidance to end 2019 with greater than $6 million in net cash and cash equivalents as well as our ability to reach profitability with our existing balance sheet. At June 30, pro forma cash and cash equivalents, including today's financing and deducting financing-related fees and expenses, would have been approximately $31.6 million, with no debt. I'll now hand the call back to David.

Thank you, Marty. We're delighted that we have been able to execute on each aspect of our business in a solid methodical fashion. We look forward to now fielding your questions. Operator, can you open the line to Q&A?

[Operator Instructions] Looks like we do have a question at this time. We'll take that question from George Thompson, who is an investor.

Yes. My question is, your relationship with Johnson & Johnson, how is that proceeding? And what do you see in the future for the investment opportunities with the other companies?

George, thanks for the question. So we have obviously a long-term relationship with Johnson & Johnson. Last summer, we renewed that agreement and extended the agreement and catheter supply agreement through the end of 2022. And I expect that we'll continue to have a good long-term relationship with Johnson & Johnson. More broadly, we're building relationships with a broad array of companies. We announced obviously a relationship also with another mapping company in the electrophysiology space Acutus last year, and we've developed our technology and our general philosophy of running the company as an open ecosystem philosophy. And so I expect that there will be additional partnerships like that in the future.

Okay. And also if I ask do you have any type of interests from any mergers, from any other company or acquisition?

That will not be appropriate for us to discuss on this call.

We'll take our next question from [ Bryan Rathman, ] who is a private investor.

My question is just regarding the time line of the FDA approval of the Genesis in the United States. Can you guys add any color to that? Like where are you guys in the process? And is there -- just any idea of when it's going to be come through?

Sure. So we're executing on our strategy which included -- which would include 2 submissions. So one larger submission to catch up a broad range of software and hardware improvements that have taken place to date, and that one we have submitted already and we're working through the Q&A with FDA. So we've received questions. We've now answered those questions. And that strategy was built so that the second submission, specifically for Genesis would be a very streamlined clean submission with a very little to review and very little changes. And so that's the status right now. We still think that some time line around the end of this year, beginning of next year as a full launch globally seems reasonable. And as I described in the earnings call, there's still kind of quite a lot of other work that we're doing at the same time, so building out the inventory and supply chain is a big effort here. And so those are all running in parallel.

We'll take our next question from [ P Prabhas from Krishna Trading. ]

Sorry, if you guys mentioned this earlier, but just a quick housekeeping question. Did you guys disclose what percent of revenue was recurring?

In this quarter, it was 100% recurring revenue.

100%. Okay. Just wanted to check.

[Operator Instructions] It appears at this time, there are no questions, and I'll turn our conference back over to our speakers.

Okay. Thank you for your question and for your continued support and interest. We're excited for the path ahead of us, and look forward to working hard on your behalf and speaking again next quarter. Thank you.

Ladies and gentlemen, thank you for joining today's conference call. The call has now concluded. Please disconnect your lines, and have a great day.