MRI Interventions Announces Third Quarter 2013 Financial Results

MRI Interventions Announces Third Quarter 2013 Financial Results

MEMPHIS, Tenn., Nov. 12, 2013 (GLOBE NEWSWIRE) -- MRI Interventions, Inc.
(OTCQB:MRIC), a commercial stage medical device company focused on creating
innovative platforms for performing the next generation of minimally invasive
surgical procedures in the brain and heart, announced today its financial
results for the quarter ended September 30, 2013.

Management Comments

"MRI Interventions had another very successful quarter. We achieved record
product revenues in the quarter, including record revenues from both
disposable product sales and capital product sales. We expanded the ClearPoint
installed base in the quarter with four new installations, another company
record, and we narrowed our operating loss in the quarter compared to the
second quarter of this year," said Kimble Jenkins, CEO of MRI Interventions.

"We are very pleased to report growth in our product revenues of over 160%,
with total product revenues of $850,000 in the third quarter 2013 compared to
$318,000 in the third quarter 2012. Revenues from disposable product sales
increased to $470,000 in the third quarter 2013, up from $287,000 in the third
quarter 2012," said Jenkins. "Revenues from capital product sales grew
significantly to $380,000 in the third quarter 2013, up from $31,000 in the
third quarter 2012."

Jenkins continued, "We further expanded the ClearPoint footprint, as we ended
the third quarter with 29 installed sites, including 27 sites in the United
States. Our new installations in the quarter included Cook Children's Medical
Center in Fort Worth, Texas, Ronald Reagan UCLA Medical Center, University of
Colorado Hospital, and University of Virginia Medical Center."

"Throughout this year, we have concentrated on building our sales and clinical
support team for the ongoing growth of our business. During the third quarter,
we made further progress in expanding our sales and clinical support
capabilities by adding more personnel," said Jenkins. "Our activity in drug
delivery with ClearPoint continued to progress, and the five clinical trials
in which ClearPoint is involved continued to move forward during the quarter."

"We ended the third quarter with substantial momentum.Demand for ClearPoint
continues to build, and the list of hospitals with our ClearPoint technology,
including some of the country's leading neurosurgical centers, continues to
grow.U.S. News & World Report published its rankings of the 'Best Hospitals
2013-14' in the Neurology & Neurosurgery adult specialty.We are proud to
count five of the top 10 ranked hospitals as ClearPoint sites," said Jenkins.

"Most importantly, we are proud of the impact ClearPoint is making on the
lives of patients.During the third quarter, clinical data was presented at
the International Congress of Parkinson's Disease and Movement Disorders
highlighting the benefits of DBS lead placement with ClearPoint in pediatric
patients suffering from primary dystonia.Following the end of the quarter,
positive clinical and technical outcomes data relating to ClearPoint-assisted
DBS lead placement was presented during the Annual Meeting of the Congress of
Neurological Surgeons," said Jenkins.

"In prior quarterly conference calls, we have talked about the impact our
ClearPoint system is having on the lives of patients and their
families.During our call today, we will share the specific stories and videos
of two patients whose lives have been changed through ClearPoint-enabled
procedures," said Jenkins.The videos are available on the MRI Interventions
website at www.mriinterventions.com/clearpoint/patient-stories.

"Finally, with respect to our ClearTrace cardiac platform in development, we
are very pleased to announce our research collaboration with the University of
Bordeaux in France.This new research relationship broadens the scope of our
preclinical activities, and it builds on our work with the University of Utah
over the last few years," said Jenkins.

Financial Review

Quarter Ended September 30, 2013

Product revenues were $850,000 for the quarter ended September 30, 2013,
compared to $318,000 for the same period in 2012, an increase of 167%.
Disposable component revenues were $470,000 for the quarter ended September
30, 2013, compared with $287,000 for the same period in 2012, representing
growth of 64%. Capital product sales were $380,000 in the third quarter 2013,
compared to $31,000 in the quarter ended September 30, 2012. Service revenues
related to contract product development decreased from $163,000 in the third
quarter 2012 to $49,000 for the same period in 2013. For the first time, the
Company also recorded other service revenues of $28,000 during the quarter
ended September 30, 2013 related primarily to installation services and
service agreements. License fee revenues of $650,000 were recorded in the
third quarter 2012, while no license fee revenues were recorded in the third
quarter 2013. Those revenues related to license fees the Company received in
2008 that were deferred and recognized over time. The revenue recognition
period for those fees ended in March 2013, and therefore all revenues related
to the license fees the Company received in 2008 were recognized as of the end
of the first quarter. In the aggregate, the Company recorded revenues of
$927,000 for the quarter ended September 30, 2013, compared to $1.1 million
for the same period in 2012, with the decline driven by the expiration of the
revenue recognition period for the license fees the Company received in 2008.

Research and development costs were $725,000 for the quarter ended September
30, 2013, compared to $574,000 for the same period in 2012. The primary
drivers for the increase were increases in sponsored research costs and
license fee expenses, related to technologies still in the development phase,
incurred in the quarter ended September 30, 2013.

Selling, general and administrative expenses were $1.7 million for the quarter
ended September 30, 2013, compared to $1.4 million for the same period in the
prior year. The increase was driven by investments in the field sales and
clinical support functions.

Net other expense was $1.2 million for the quarter ended September 30, 2013,
compared to net other expense of $1.7 million for the same period in 2012.Net
other expense for both periods was almost exclusively attributable to losses
recorded by the Company in connection with the change in the fair value of
derivative liabilities associated with warrants issued by the Company in
connection with equity financings.

Net interest expense for the quarter ended September 30, 2013 was $122,000,
compared with $79,000 for the same period in 2012.

For the quarter ended September 30, 2013, the Company's net loss was $3.2
million ($0.05 per share), compared to a net loss of $2.8 million ($0.06 per
share) for the same period in 2012.

Nine Months Ended September 30, 2013

Product revenues totaled $1.8 million for the nine months ended September 30,
2013, compared to $831,000 for the same period in 2012, an increase of 117%.
Disposable component revenues were $1.2 million for the nine months ended
September 30, 2013, compared with $713,000 for the same period in 2012,
representing growth of 71%. Capital product sales were $586,000 in the nine
months ended September 30, 2013, compared to $118,000 in the same period in
2012. Development service revenues related to contract product development
decreased from $414,000 in the nine months ended September 30, 2012 to
$268,000 for the same period in 2013. License fee revenues of $650,000
recorded during the nine months ended September 30, 2013 were down from $2.0
million recorded during the same period in 2012 as the revenue recognition
period ended in March 2013. Those revenues related to license fees the Company
received in 2008 that were deferred and recognized over time. In the
aggregate, the Company recorded revenues of $2.8 million for the nine months
ended September 30, 2013, compared to $3.2 million for the same period in
2012, with the decline attributable to the expiration of the revenue
recognition period for the license fees the Company received in 2008.

Research and development costs were $2.2 million for the nine months ended
September 30, 2013, compared to $1.7 million for the same period in 2012. The
primary drivers for the increase were sponsored research costs and spending on
development related to ClearPoint system software enhancements.

Selling, general and administrative expenses were $5.0 million for the nine
months ended September 30, 2013, compared to $4.6 million for the same period
in the prior year. This increase, again, relates to investments in the field
sales and clinical support functions.The increase was partially offset by a
decrease in share-based compensation expense.

Net other income was $378,000 for the nine months ended September 30, 2013,
compared to net other expense of $1.7 million for the same period in 2012. Net
other income was recorded in the current period as a result of gains of $1.3
million associated with the change in the fair value of derivative liabilities
associated with warrants and $382,000 related to negotiated reductions in
amounts due to service providers.These gains were mostly offset by a $1.4
million loss resulting from a loan modification.Net other expense for the
nine months ended September 30, 2012 related to a loss arising from the change
in the fair value of the derivative liability associated with warrants issued
in the Company's July 2012 equity financing.

Net interest expense for the nine months ended September 30, 2013 was
$342,000, compared with $2.5 million for the same period in 2012.
Approximately $2.0 million of the interest expense during the nine months
ended September 30, 2012 related to the write-off of debt discounts and
deferred financing costs associated with convertible notes that converted into
shares of the Company's common stock in February 2012 when the Company became
a public reporting company.

For the nine months ended September 30, 2013, the Company's net loss was $5.4
million ($0.09 per share), compared to a net loss of $6.8 million ($0.18 per
share) for the same period in 2012.

The Company had a cash balance of $5.0 million at September 30, 2013.

Financial Tables

Summarized financial information for the quarters and nine months ended
September 30, 2013 and 2012 is presented below. Further information concerning
the Company's financial condition and results of operations for the quarters
and nine months ended September 30, 2013 and 2012 will be included in its
Quarterly Report on Form 10-Q to be filed with the Securities and Exchange
Commission.

MRI INTERVENTIONS, INC.
Condensed Statements of Operations
(unaudited)
                                                           
                Quarters Ended September 30,  Nine Months Ended September 30,
                2013           2012           2013            2012
                                                           
Revenues:                                                   
Product and      $927,457     $481,828     $2,104,145    $1,245,587
service revenues
Related party    --           650,000       650,000        1,950,000
license revenues
Total revenues   927,457       1,131,828     2,754,145      3,195,587
Costs and
operating                                                   
expenses:
Cost of product  365,497       133,371       887,605        391,797
revenues
Research and
development                                                 
costs
Research and
development      725,304       573,562       2,238,574      1,749,253
costs
Reversal of R&D  --           --           --            (882,537)
obligation
Selling,
general, and     1,697,876     1,441,934     5,034,514      4,585,082
administrative
Total costs and
operating        2,788,677     2,148,867     8,160,693      5,843,595
expenses
Operating loss   (1,861,220)   (1,017,039)   (5,406,548)    (2,648,008)
Other income                                                
(expense):
Other income,    (1,211,697)   (1,665,626)   378,483        (1,690,251)
net
Interest         (121,895)     (78,628)      (342,427)      (2,497,402)
expense, net
Net loss         $(3,194,812) $(2,761,293) $(5,370,492)  $(6,835,661)
Net loss per                                                
common share:
Basic and        $(0.05)      $(0.06)      $(0.09)       $ (0.18)
diluted
Weighted average
shares                                                      
outstanding:
Basic and        58,254,039    47,531,093    56,845,732     37,807,188
diluted

The SmartFrame targeting device is an MRI-compatible trajectory frame that
serves as the centerpiece of the ClearPoint system's disposable components.
Depending on the type of neurological procedure being performed, a ClearPoint
procedure will utilize either one or two SmartFrame kits.The Company sold 90
SmartFrame kits during the quarter ended September 30, 2013. That compares to
92 SmartFrame kits sold during the quarter ended June 30, 2013, and 70
SmartFrame kits sold during the quarter ended March 31, 2013.

MRI INTERVENTIONS, INC.
Condensed Balance Sheets
(unaudited)
                                                        
                                           September 30, December 31,
                                            2013          2012
ASSETS                                                   
Current Assets:                                          
Cash and cash equivalents                   $5,031,199  $1,620,005
Accounts receivable                         787,706      445,432
Inventory                                   1,242,368    899,702
Other current assets                        164,999      110,873
Total current assets                        7,226,272    3,076,012
Property and equipment, net                 1,237,453    1,287,115
Other assets                                1,056,692    1,188,619
Total assets                                $9,520,417  $5,551,746
LIABILITIES AND STOCKHOLDERS' DEFICIT                     
Current liabilities:                                     
Accounts payable and accrued expenses       $2,095,653  $3,416,461
Derivative liabilities                      4,106,224    2,129,091
Deferred revenue                            110,265      762,725
Total current liabilities                   6,312,142    6,308,277
                                                        
Other accrued liabilities                  445,781      574,722
Notes payable, net of unamortized discounts 8,374,503    6,534,150
Total liabilities                           15,132,426   13,417,149
Stockholders' deficit                       (5,612,009)  (7,865,403)
Total liabilities and stockholders' deficit $9,520,417  $5,551,746

2013 Outlook

In connection with the announcement of its second quarter 2013 financial
results, the Company provided guidance with respect to its anticipated total
product revenues for 2013.Based on performance in the third quarter 2013, the
Company is updating its guidance to increase both the lower and upper ends of
the range of total product revenues the Company expects for 2013.The Company
now anticipates total product revenues for 2013 of $2.5 million to $2.8
million, which would equate to total annual revenues for 2013 of $3.5 million
to $3.8 million.

Conference Call

There will be a conference call today at 4:30 p.m. Eastern Time.To listen to
the conference call, please dial 877-407-9034 from the United States or Canada
or 201-493-6737 from other international locations. A playback of the call
will be available through November 19, 2013, and may be accessed by dialing
877-660-6853 from the United States or Canada, or 201-612-7415 from other
international locations, and referencing Conference ID 413671.Additionally,
you may access the live or archived webcast of the conference call on the
Company's website at http://ir.stockpr.com/mriinterventions/ir-calendar.

About MRI Interventions, Inc.

Founded in 1998, MRI Interventions is creating innovative platforms for
performing the next generation of minimally invasive surgical procedures in
the brain and heart.Utilizing a hospital's existing MRI suite, the company's
FDA-cleared and CE-marked ClearPoint^® system is designed to enable a range of
minimally invasive procedures in the brain.In partnership with Siemens
Healthcare, MRI Interventions is developing the ClearTrace^® system to enable
MRI-guided catheter ablations to treat cardiac arrhythmias, including atrial
fibrillation. Building on the imaging power of MRI, the company's
interventional platforms strive to improve patient care while reducing
procedure costs and times. MRI Interventions is also working with Boston
Scientific Corporation to incorporate its MRI-safety technologies into Boston
Scientific's implantable leads for cardiac and neurological applications.For
more information, please visit www.mriinterventions.com.

Forward-Looking Statements

Certain matters in this press release constitute forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Forward-looking statements often
can be identified by words such as "anticipates," "believes," "could,"
"estimates," "expects," "intends," "may," "plans," "potential," "predicts,"
"projects," "should," "will," "would," or the negative of these words or other
words of similar meaning. Forward-looking statements by their nature address
matters that, to different degrees, are uncertain and involve risk.
Uncertainties and risks may cause MRI Interventions' actual results and the
timing of events to differ materially from those expressed in or implied by
MRI Interventions' forward-looking statements. Particular uncertainties and
risks include, among others: demand and market acceptance of our products; our
ability to successfully expand, and achieve full productivity from, our sales
and clinical support capabilities; availability of reimbursement from third
party payors for procedures utilizing our ClearPoint system; the sufficiency
of our cash resources to maintain planned commercialization efforts and
research and development programs; future actions of the FDA or any other
regulatory body that could impact product development, manufacturing or sale;
our ability to protect and enforce our intellectual property rights; our
dependence on collaboration partners; the impact of competitive products and
pricing; and the impact of the commercial and credit environment on us and our
customers and suppliers. More detailed information on these and additional
factors that could affect MRI Interventions' actual results are described in
our filings with the Securities and Exchange Commission, including, without
limitation, MRI Interventions' Quarterly Report on Form 10-Q filed with the
Securities and Exchange Commission on August 14, 2013. Except as required by
law, MRI Interventions undertakes no obligation to publicly update or revise
any forward-looking statements contained in this press release to reflect any
change in our expectations or any change in events, conditions or
circumstances on which any such statements are based.

CONTACT: MRI Interventions, Inc.
         David Carlson, CFO
         901-522-9300

MRI Interventions, Inc. logo
 
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