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Note 1 - Description of the Business and Liquidity
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3 Months Ended | |||||||||
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Mar. 31, 2013
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| Nature of Operations [Text Block] |
1. Description
of the Business and Liquidity
MRI
Interventions, Inc. (the “Company”) is a medical
device company focused on the development and
commercialization of technology that enables physicians to
see inside the brain and heart using direct, intra-procedural
magnetic resonance imaging (“MRI”), guidance
while performing minimally invasive surgical procedures. The
Company was incorporated in the State of Delaware on March
12, 1998.
The
Company’s ClearPoint system, an integrated system
comprised of reusable components and disposable products, is
designed to allow minimally invasive procedures in the brain
to be performed in an MRI suite. In 2010, the Company
received 510(k) clearance from the Food and Drug
Administration (“FDA”) to market the ClearPoint
system in the United States for general neurological
interventional procedures. The Company’s ClearTrace
system is a product candidate under development that is
designed to allow catheter-based minimally invasive
procedures in the heart to be performed in an MRI suite. The
Company has also entered into exclusive licensing and
development agreements with affiliates of Boston Scientific
Corporation (“BSC”), pursuant to which BSC may
incorporate certain of the Company’s MRI-safety
technologies into BSC’s implantable leads for cardiac
and neurological applications.
Liquidity
and Management’s Plans
For
the three months ended March 31, 2013 and for the year ended
December 31, 2012, the Company incurred net losses of
$950,003 and $5,707,136, respectively, and the cumulative net
loss since the Company’s inception through March 31,
2013 was $66,445,749. The Company expects such losses to
continue through at least the year ended December 31, 2013 as
it continues to commercialize its ClearPoint system and
pursue research and development activities. Net cash used in
operations was $2,242,766 and $7,433,816, for the three
months ended March 31, 2013 and for the year ended December
31, 2012, respectively. Since inception, the Company has
financed its activities principally from the sale of equity
securities, the issuance of convertible notes and license
arrangements.
The
Company’s primary financing activities during the three
months ended March 31, 2013 and the year ended December 31,
2012 were:
While
the Company expects to continue to use cash in operations,
the Company believes its existing cash and cash equivalents
at March 31, 2013 of $9,198,267, combined with cash generated
from product and service revenues, will be sufficient to meet
the Company’s anticipated cash requirements through at
least March 2014. During the remainder of 2013, the Company
plans to increase its spending on sales and marketing
activities as it completes the commercial rollout of its
ClearPoint system, from which the Company expects to increase
ClearPoint system product revenues. Certain planned
expenditures are discretionary and could be deferred if the
Company is required to do so to fund critical operations. The
sale of additional equity or convertible debt securities will
likely result in dilution to the Company’s current
stockholders. To the extent the Company’s available
cash and cash equivalents are insufficient to satisfy its
long-term operating requirements, the Company will need to
seek additional sources of funds, from the sale of additional
equity, debt or other securities or through a credit
facility, or modify its current business plan. There can be
no assurances that the Company will be able to obtain
additional financing on commercially reasonable terms if at
all.
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