Stereotaxis, Inc. (STXS) Q2 2026 Earnings Report, Transcript and Summary

Good afternoon. Thank you for joining us for Stereotaxis' Second Quarter 2026 Earnings Conference Call. Certain statements during the conference call and question-and-answer period to follow may relate to future events, expectations, and as such, constitute towards forward-looking statements within the meaning of the 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 the statements that the company's executives may make today. These risks are 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 this statement. [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. Please go ahead.

Thank you, operator, and good afternoon, everyone. On our last call, we discussed in detail the structural transformations taking place at Stereotaxis. We just celebrated a particularly milestone-rich period with regulatory approvals for a new robot, both therapeutic and diagnostic catheters, and a digital surgery system. These products individually and collectively as a synergistic ecosystem create an attractive foundation for us to scale commercialization with reduced barriers to adoption and a much more attractive business model. During the second quarter, Stereotaxis reached an important commercial inflection point as our expanded product offering is now generating accelerating adoption. It is still just the initial green shoots of commercial success, but the early experience and feedback provides confidence in sustained progress. I'll discuss on today's call the primary areas of commercial progress, the feedback from the field, and our efforts to accelerate growth. I'll then share some additional updates on the robust pipeline of innovations that we continue to advance and that will drive a second wave of growth over the coming years. Kim will then share financial details for the quarter and we'll open the line for questions. A key area of focus in the second quarter was on the launch of MAGiC in the U.S. following FDA approval in the first quarter. While supply constrained and still just in the early adoption phase, that launch allows us to reach a multi-year high point in recurring revenue, which surpassed $6 million in the quarter, driven by over $1 million in robotic catheter revenue. Our robotic catheter revenue is scaling significantly in both the U.S. and Europe with nearly 300% sequential growth from the first to the second quarter. We are in the early phase of adoption of MAGiC, with about a dozen U.S. sites receiving hospital approval to purchase the catheter and beginning procedures in the second quarter. Several physicians sent me unprompted feedback as they started to use the catheter. 1 physician commented, "MAGiC performs so much better than the old ablation catheter." Basically, you can more reliably target tissue and more effectively ablate the target tissue. It fundamentally changes the utility of the Stereotaxis system, more than doubling the value of having a robot. Another physician, upon completing his first 10 procedures, mentioned that he is, "loving it, and that the catheter is improving his efficiency significantly with a more stable and more powerful catheter delivering rapid, effective ablations." Another physician, after his first day of procedures, mentioned, "Wow, this catheter navigates well. You guys have something special." This feedback is highly encouraging. We have long known that the perception and value proposition of robotics in EP is only as good as the catheters available for use with the robot. Being tied to decades-old catheter that did not benefit from continued innovation limited our potential. It is very satisfying to see the innovations we took from concept to commercial reality benefit critical patients with complex arrhythmias and the physicians that treat them. It gives us confidence that our efforts to reestablish Stereotaxis on a healthy foundation and trajectory are off to a good start. We are continuing to methodically work through hospital approvals and initial launches of our robotic catheters across our U.S. and European installed base. We expect the vast majority to shift from their historical dependency on J&J to our catheters within the next year. While working through the commercial friction of transitioning each customer, we are putting significant effort into ramping manufacturing of catheters. Sales remain supply constrained as we work to increase output with catheters still on backlog as we receive more orders from customers than the supply we receive from our contract manufacturer, Osypka. We are seeing methodical progress in increasing supply and are separately reaching key milestones in establishing supply redundancy. These support our expectations of sustained growth in our catheter revenue stream, and we're guiding for an approximate $1 million incremental step up in catheter revenue in each of the next couple quarters, with significantly more opportunities beyond that in 2027. Shifting now to system revenue. There are 2 primary items to discuss, Synchrony and GenesisX. During the second quarter, we received FDA clearance for the Synchrony system. As a reminder, Synchrony and SynX are our digital solutions that modernize the interventional surgical suite with enhanced workflow, remote connectivity, and smart AI capabilities. Synchrony serves as the cockpit for every robot, but also has an independent, much larger opportunity in non-robotic operating rooms. Shortly after receiving regulatory clearance, we received orders for multiple systems from several hospitals. We shipped the first few systems in the second quarter, have continued to ship systems in the third quarter, and there are already several systems in daily clinical use. They're performing well in the field, and we have a pipeline of software feature enhancements over the coming months and years that will continue to expand the value proposition. Without a significant dedicated sales effort, we are seeing organic interest that should support over $1 million in Synchrony system revenue each quarter for the next few quarters. Most excitingly, there are several hospitals that are planning or considering standardizing their catheter labs on Synchrony and SynX. While the current contribution of Synchrony is a nice but modest boost to revenue, the market opportunity is large and we intend to increase the sales effort as our pipeline builds and our manufacturing capacity matures. As these initial installs mature, they will also start to drive service contract and Software-as-a-Service recurring revenue streams. Most impactful to system revenue over the coming few years will be scaling the adoption of our robotic technology. Our robotic technology has significant real-world validation with over 150,000 patients treated at over 100 leading hospitals globally. That said, we still have just a fraction of a percent market share in our beachhead market of electrophysiology and no presence yet in the larger interventional cardiology and neurointerventional fields. There is a market opportunity for many thousands of robotic systems across these markets. Our historical need to construct robotic labs was a major barrier to ever realizing that opportunity. GenesisX allows us to start envisioning a realistic way to scale robotic adoption much more significantly. Since we received regulatory clearance for GenesisX, we've been focused on how to ensure GenesisX can be installed alongside standard X-rays from leading manufacturers, removing the historical requirement that a robot only work with a specific modified X-ray. We focused our initial commercial launch on the early adopters who will demonstrate that potential and serve as reference sites for broad compatibility with various X-rays. We are pleased that in addition to the previously announced GenesisX purchase in Europe, we're able to announce our first GenesisX purchase in the U.S. from an academic medical center. The system is expected to be installed this fall with a non-modified X-ray from 1 of the larger X-ray manufacturers. With that installation, we expect to declare formal compatibility with that manufacturer's X-ray. The construction of the new wing of the hospital in Europe, where GenesisX is scheduled to be installed, also seems to be finally back on track with installation expected prior to year-end. We're continuing to advance several additional GenesisX sale or lease agreements that will further demonstrate the system being used in a variety of lab environments. With demonstration of GenesisX working reliably and compatibly with various X-rays, along with increased availability of MAGiC, we will initiate a more aggressive commercial launch of the technology. These initial green shoots of commercial success demonstrate the opportunity to build a highly successful business with our new product ecosystem. A proprietary catheter portfolio with its high margin razor blade business model has been central to our strategy and is now starting to become a material contributor. Accessibility of our robotic systems, such that we can reasonably scale to selling 10s and then 100s of robots a year is critical if we are to impact medicine in the way we should, and we have now begun that journey and will demonstrate the robot's performance in daily clinical use in the near term. This progress does not come easy and I want to recognize and congratulate the many Stereotaxis team members who make it possible. There are always hurdles and unforeseen challenges in the effort to pioneer new advanced technologies and to implement them in the complex healthcare market and demanding operating room environment. As a lean team working on multiple significant transitions in tandem, they're demonstrating our ability to rise to the challenge. Thank you everyone who makes this possible. It is particularly exciting for me that we are driving this operational and commercial progress while not slowing down on a robust innovation effort. There is much going on in the background and we are energetically nurturing significant opportunities that will blossom over the next few years. Our efforts can be summarized in a few key categories. First, robot accessibility. We're advancing a future generation of the GenesisX robot that will be fully wireless, battery operated and mobile. Second, a more robust portfolio of EP catheter innovation. Most imminently here, we expect first-in-human procedures with MAGiC and Pulsed Field Ablation before the end of this year. Third, a pipeline of robotic systems and interventional devices for the broader interventional cardiology and neurointerventional fields. We're advancing regulatory submissions and reviews for the EMAGIN family of magnetic guide catheters and guidewires that will be driven by GenesisX. Even more significantly, we closed the previously announced Robocath acquisition in July and are energetically advancing their fully complementary and separate robotic system for endovascular device navigation with a vision of offering a full ecosystem that enables remote, automated, and fully robotic treatment of stroke and cardiovascular disease. And fourth, AI efforts that will incorporate intelligent decision support features into Synchrony and automation to our robotic platforms. We will discuss these further on future calls and as they mature, but there is still much room to advance our technology in exciting ways that improve and expand our clinical impact and commercial opportunity. Our vision for what Stereotaxis can and will accomplish is becoming increasingly clear and tangible. The key puzzle pieces have come together in a remarkable fashion and we are enthusiastically advancing forward. Kim will now provide commentary on our financial results and then I'll make a few financial comments as well before opening the call to Q&A. Kim?

Thank you, David, and good afternoon, everyone. Revenue for the second quarter of 2026 totaled $7.7 million. Revenue in the quarter declined year-over-year due to the lack of a robotic system delivery in the quarter, but increased sequentially from the first quarter due to significantly higher catheter revenue. System revenue of $1.5 million and recurring revenue of $6.2 million compared to $3 million and $5.8 million in the prior year's second quarter. System revenue in the current quarter includes modest revenue recognition from previously delivered Genesis systems and ancillary equipment and a notable contribution from the initial launch of Synchrony. Recurring revenue in the quarter reflects a significant increase in revenue from our new portfolio of robotically navigated catheters, up 270% sequentially and 450% year-over-year, countered by general pressure on procedures as we transition away from Johnson & Johnson and manufacturing of our catheters. Gross margin for the second quarter of 2026 was 58% of revenue. Recurring revenue gross margin was 66% and system gross margin was 29%. Gross margins for both recurring revenue and systems are impacted by low manufacturing volumes. While we expect margins to remain at these approximate levels over the next few quarters, we see significant opportunity for margin expansion in 2027 and 2028. Operating expenses in the quarter of $9.1 million included $2.5 million in non-cash charges for stock compensation expense, mark-to-market adjustment for acquisition-related contingent earn-out consideration, and amortization of acquired intangible assets. Excluding these non-cash charges, adjusted operating expenses were $6.6 million, consistent with a year-ago period when adjusting for a one-time employee retention tax credit received in the prior year. Operating loss and net loss in the second quarter of 2026 were $4.6 million and $4.5 million compared with $4 million and $3.8 million in the previous year. Adjusted operating loss and adjusted net loss for the quarter, excluding non-cash charges, were $2.1 million and $2 million, compared with $1.4 million and $1.3 million in the previous year. Negative free cash flow for the second quarter was $3.7 million, consistent with the previous year. At June 30th, Stereotaxis had cash and cash equivalents of $10.5 million and no debt. I will now hand the call back to David.

Thank you, Kim. We expect continued momentum in recurring revenue driven by increased manufacturing supply and expanded adoption of our robotic catheter portfolio. Recurring revenue is anticipated to grow to approximately $7 million in the third quarter and $8 million in the fourth quarter of this year, with significant room for continued momentum in 2027 and beyond. System revenue has been weak in the first half of this year, and we expect the second half to be stronger with approximately $3 million in each of the third and fourth quarters. From a financial perspective, we've maintained a lean operating budget while managing multiple product launches, ramping manufacturing, executing a strategic acquisition, and advancing a continued robust R&D effort. We are sensitive to subjecting investors to dilution and are confident we can advance our strategy on our current budget. We are internally modeling to reach cash flow profitability in the first half of 2027. As our recurring revenue ramps, the majority of incremental revenue flows to operating profit. This revenue ramp can be accomplished with our existing team, and as we reach cash flow profitability, we will reinvest our profits in our commercial organization supporting accelerated growth. We will now take your questions. Operator, can you please open the line to Q&A?

[Operator Instructions] Your first question comes from Daniel Stauder from Citizens JMP.

Just the first one on guidance. I appreciate the level of quarterly detail for recurring revenue and capital. I believe that puts the full year at about $35 million. I was hoping you could give us some more color on, 1, your visibility, and 2, your confidence in terms of hitting these numbers in the back half, and more broadly, what is assumed or contemplated in terms of catheter manufacturing improvements, as well as some capital adoption and installation timing as we think about these expectations.

Thanks for the questions. We thought that would be kind of a helpful way to share our expectations. And the growth in recurring revenue is essentially all driven by adoption of our proprietary catheters, of kind of our robotically steered catheters. And there's obviously volatility in any given quarter in terms of things like the Map-iT catheters and procedure volume. The third quarter is generally a seasonally weak quarter in terms of procedures just because of summer vacations, particularly in Europe, but also in the U.S. But generally, the growth is coming all from adoption of MAGiC, MAGiC Sweep, and in Europe we have kind of other catheters that we're able to also kind of supplement those. And so that's where all the growth comes from. We are looking at it both from a demand perspective and from a supply perspective, but in things like the third and fourth quarter, it's really still driven essentially all by supply. And so we're still supply constrained. We have a backlog of catheter orders from customers, from many customers. And as we get catheters in from that supply, we're able to ship it kind of very quickly to customers and recognize revenue. And so that's kind of the main factor in our determination. On the system side of things, it's a mix of both Synchrony and robotic systems. On the Synchrony side, we have been receiving, we have received orders that we've not yet filled. We're still receiving orders. I think the kind of the general guidance we gave in this call of around $1 million plus of Synchrony system sales per quarter seems very reasonable. And that obviously it's a lower ASP product in the near $200,000 range. And so that's something that we're shipping several of them out each quarter. On the system side, we are kind of the guidance -- kind of predicated on 1 system revenue recognition in each of the third and fourth quarter. We have obviously the GenesisX sale, which we expect to recognize revenue in the third quarter and install shortly thereafter. But -- and then kind of we have still a backlog and we have kind of additional Genesis orders that can be recognized as they get delivered and installed. And so that's kind of where the guidance comes from.

I appreciate that and thanks for the color. Just the next one on cash flow. It's great to get that update. But I was wondering if you could just parse out a little bit more in terms of granular assumptions, in terms of -- is there a certain revenue level? Are there any other specific improvements on the operating lines in order to get there? Just wanted to double hit on this and get any more commentary in terms of the cash flow. It'd be great.

Sure. So I'll see if Kim wants to add to anything, but kind of from a very high level, right, we do scenario analyses all the time with conservative models, base models, and -- to kind of to evaluate the business and how we see it going. The main drivers of our business right now are the 3 that were discussed in the prepared remarks predominantly, again, the adoption of our robotically steered catheters and then capital sales both through Synchrony and through GenesisX. When we look at the ramp in catheter adoption given what we believe we will achieve from a manufacturing perspective and just the existing demand out there for those catheters, given the robotic procedures taking place at this time, I expect that our catheter innovations will improve utilization, but even without taking that into account, and with very modest assumptions on the capital side and kind of essentially the same kind of $1 million a quarter or so of Synchrony and system sales in line with our historical, we get to breakeven in the first half of next year and cash flow profitability kind of at that point. And so it requires relatively modest assumptions to get to breakeven. We are obviously staying lean on our operating expenses given that, but that doesn't mean that we don't continue to invest in the things that are impactful. And so we're still advancing a broad R&D pipeline. We're advancing some clinical studies. We're obviously doing all the operating work and commercial work to launch these new products. And so we think kind of with that balancing act of how to manage the expenses and then letting the recurring revenue start to kind of incrementally grow with that, with the availability of catheters, we'll be in a breakeven position at the beginning, at the early periods of next year.

And just 1 quick one, and I'll squeeze in on MAGiC catheters. Great to see the progress here on this side of the business. I know you mentioned last quarter that some of your customers were seeing revenue per procedure above $5,000, even up to $8,000. So I just wanted to ask on these dynamics, are you seeing that to continue in some of the early accounts or just any other trends you're seeing would be fantastic?

Sure. So yes, obviously, kind of, the baseline when someone is adopting MAGiC is that they're using our QuikCAS device, that's a historical disposable device we've been selling for 20 years, plus now a MAGiC catheter, 1 of our catheters. And they can also then add to that if they want a robotic high density mapping catheter or other diagnostic catheters that we are now able to supply. And in the U.S., our pricing is extremely consistent across sites. And so that number of -- in the $5,000 to $8,000-plus range is a very consistent ASP we're receiving per procedure for the disposables used in a procedure. And in other geographies, it varies depending on the country. And so there's a tip -- and typically in Europe, it's at lower levels, but that's kind of the level that you quoted were the levels in the U.S.

Congrats on the progress.

Your next question comes from Frank Takkinen from Lake Street Capital Markets.

Hey, this is Nelson Cox on for Frank. Wanted to start with the U.S. GenesisX purchase. On the compatibility strategy, once you declare formal compatibility with that first X-ray manufacturer with the fall install, what's the path to other major OEMs? Does each need its own reference installation? Or does the first declaration shorten that work for the rest? And then on the at least 5 active programs you targeted for this year, is that something we should still be expecting? I think you had commented on maybe 1 being in the ASC setting, but just curious your thoughts there.

Sure. Hi, Nelson. Thanks for the questions. And so on the X-ray compatibility side, we need to do the formal testing and there's a few stages of testing so we've already done various stages of testing with all of the large X-ray manufacturers and out there that initial phases of testing has gone well with all of the different X-ray manufacturers and that's what gives us confidence in GenesisX being able to serve as a robot that works compatibly, kind of broadly compatible with different X-rays in existing operating rooms. But the last stage of testing is actual formal compatibility testing, where in the clinical environment, we're placing the robot with the X-ray and doing formal testing compatibility of the 2 together. Once we do that with X-ray manufacturer A's and model A X-ray, then that becomes a compatibility statement that lasts for any of those X-rays, right? So then any other hospital that wants to use GenesisX with that X-ray, we can point to that compatibility statement and give them the confidence that it works together. And so that's really kind of this initial effort is with the 3, 4, 5 biggest X-ray manufacturers out there and making sure that kind of we have formal compatibility statements with their main X-rays and that we can kind of prove to the world and prove to our customer base that they are compatible in a regulatory-compliant fashion. And so that's the effort. We have kind of 1 of them, and that gets a little bit to your second question that, yes, we're still working. Obviously, the site in Italy is the second one that's actually an integrated X-ray that we've had other installs of Genesis in the past with. So we'll have kind of 2 X-rays working with GenesisX by the end of this year, 1 in Europe, 1 in the U.S., and we are still working. There's a pipeline of several hospitals, including an ASC that are working on lease agreements, and those are with actually other X-rays than the first 2 that I mentioned. And so we are expecting a few installs by the end of this year. I hope we can get towards 5, but we'll definitely have 2 and hopefully we'll have someone between that 2 and 5 by the end of this year installed and able to prove kind of work in the real world.

And then maybe just on reoccurring gross margins, if I heard correctly, it sounds like the expectation is that sales are maybe around flat with the 66% through the end of the year. Maybe just remind us where you think these reoccurring margins can go into next year, as much as you can.

So I would generally point us towards margins in the mid-70s as the robotic catheters become more and more a part of the overall revenue. And as we are manufacturing more of them, and so the overhead can be kind of laid out over a bigger base, we should be getting somewhere in the mid-70s, I'd say, as a kind of a margin that shouldn't be difficult for us to reach.

And your next question comes from Joshua Jennings from TD Cowen.

Wanted to just punch in on the GenesisX sales funnel. Any updates there? I know you referenced the backlog in 1 of your answers, David, looking for just any quantitative levels of where the backlog stands now versus maybe this time last year. And then, the mix between new greenfield accounts versus replacements.

Sure. Let me kind of comment, I guess, qualitatively, it's been very, very refreshing having GenesisX available as a system. We are engaging with many hospitals and many accounts where just historically there would be no opportunity or the opportunity would be years in the future, and we can actually have tangible discussions about how to bring a GenesisX system in there, how it can fit without construction, how -- at certain accounts where there is questioning over the clinical value and there's interest, but there's also uncertainty, there's the ability to talk about lease agreements and kind of the lack of permanence of the system and that kind of get your foot in the door, try it and kind of let us prove the value once we're already there. And so it definitely has helped us significantly have discussions with many accounts, including some of the most kind of prominent hospitals and kind of out there where historically before that we just didn't have our foot in the door and we couldn't really advance discussions in a very tangible way. And so that's kind of been awesome. It's been slow and the kind of the 2, I'd say, macro challenges in translating that overall interest in communication into conversion of deals has been obviously getting GenesisX actually working in the real world. And so let's say a month, a month and a half ago, right, we announced the launch of a new robotic program in Hungary and we have still hospitals that are more comfortable moving forward with Genesis, just because Genesis is a proven robot that has worked reliably in the real world. They can speak to physicians that have used it and kind of -- and so you have that kind of that certainty that it is a real reliable system for real world use. We need to prove the same for GenesisX. I have no doubts that we will prove that, but until you don't show it, there's always some more of a question mark in customers' minds. And so that's kind of 1 big thing that we need to do. The compatibility with various X-rays is a barrier because there are some physicians, some hospitals that are willing to be the first, but the average hospital prefers not to be the first 1 to prove things like that. And then obviously also MAGiC supply is the other third kind of barrier. Everyone who adopts GenesisX knows that they are -- that they need kind of to use MAGiC. And we're still in the phase of kind of -- making sure we have enough MAGiC to cover all the existing demand, let alone future demand. And so I'd say those are the 3 structural things that we're working on. I think we're making good methodical progress on all 3 of them. And over the next few months, should be able to at least with some of the X-rays, with the MAGiC manufacturing ramp with demonstrating GenesisX at these first 2 installs, we should be able to kind of reduce those and allow for kind of a higher momentum of GenesisX commercialization.

And just, great download and thorough download again today on the catheter buildout and the pipeline. I just wanted to circle back on just the future of GenesisX. I know I might imagine that your team is not standing still. I mean, can you talk about your ultimate vision as we think a couple years out, just I mean, and how GenesisX could open up or how you could enhance the platform with increased automation, maybe more telerobotic capabilities, and then how that all plays out in terms of potentially widening a competitive moat? It seems as if the electrophysiology community is warming up each quarter, each year to robotics having a bigger role in ablation and maybe other areas in the coming years. But maybe touch on continued advancement of GenesisX capabilities and also just the EP community's sentiment towards robotics and robotics technology going forward.

Sure. So, let's say the Heart Rhythm Society, that's probably what you have in your mind, because I remember seeing you there at the Heart Rhythm Society conference this last May, I believe. There was the Society for Cardiac Robotic Navigation had their symposium in the middle of HRS. It was a huge room, and I was nervous that it would be relative, or at least look very empty. And we ended up having a great showing. It was clearly by far the largest showing we've had at an HRS conference for robotics that in any of my memory. And so we do see kind of that increased interest in that also. Kind of I think the innovations that we've been able to show and the ability to get multiple innovations actually to market and through regulatory approvals. I think there are many people who are recognizing that and that's why we're able to re-engage with some of these kind of preeminent hospitals in the U.S. that you know, historically we haven't had the relationships with and have meaningful conversations and kind of plan for how to work together in much more meaningful ways. And so I think you'll hopefully see some of that over the coming months as those come to fruition. And what I kind of say in terms of that kind of, on the 1 hand, we've done a lot. On the other hand, it feels like we're still in the very beginning of what should be done in terms of robotic innovation for this field and to really realize the full potential. And a little bit like in my prepared remarks, I think about our room for progress in 4 big buckets. And there's meaningful progress that is being made along each of -- in each of these 4 big buckets. The first is just again, increased accessibility. The easier you make it to adopt something, the better, and the more adoption you're going to get. GenesisX was a major step change versus Genesis and Niobe, but it still has some aspects which require kind of an actual installation and some aspects, cable -- some cable routing, some power cables. There's just, there are things still to be done there. And we are excited by -- at EHRA this past year, we kind of did a little demo of a fully wireless battery operated, fully mobile system that would help in various ways in smaller rooms. You'd be able to park the robot in corners of the room so you could fit it in smaller rooms. It would be a much easier even install, you literally roll it off a crate into the room. And it, kind of, it's a much more elegant system. And so that's, kind of, there's room for continued innovation there. And as we think about things like neuro or other fields, there's even much more dramatic steps beyond that. And the second big area is the interventional catheters and so having kind of a continued pipeline of interventional catheters that are robotically steered. Again, a robot is only as good as the catheters it drives. And so kind of there's a, you need to constantly think about how to innovate in that world. The third is, but then again, we've seen that things like the J&J catheter existed for 20 years and had a very long tail. So on the 1 hand, innovation is very important. On the other hand, there is such a value proposition to the robot that even when there wasn't innovation, you have a fairly sticky business given the value proposition of the robot. The third big area is how to make our robot multi-specialty. And that ties in with Robocath and the complementary mechanism of action and how to really make GenesisX plus/minus Robocath a multi-specialty robot. And then the fourth is kind of then what you were saying, how do you bring telerobotics? How do you bring automation? How do you bring augmented intelligence or artificial intelligence into the picture? And there are, there I'd say we're in our earliest phases but we have real tangible things there. Synchrony and SynX are approved and in use and, kind of, they're definitely a good technology platform now for that whole digital surgery effort and there's a whole pipeline there that in reality will take probably 10 years to realize fully the ideas that we have in our mind, but there will be many attractive stepping stones along the path with room for commercial impact along that journey.

As there are no further questions at this time, I would now like to turn the call back over to David Fischel for the closing remarks. Please go ahead.

Okay. Thank you for all the questions everyone and for your continued support. We'll continue working hard on your behalf and look forward to speaking again soon. Thank you.

Ladies and gentlemen, thank you all for joining and that concludes today's conference call. All participants may now disconnect. Thank you.