As filed with the Securities and Exchange Commission on SeptemberMay 19, 2019.2023

Registration No. 333-_____

UNITED STATES

Registration No. 333-SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

 

 

FORM S-3

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549REGISTRATION STATEMENT

UNDER

THE SECURITIES ACT OF 1933

 

 

STEREOTAXIS, INC.

(Exact name of registrant as specified in its charter)

 

FORM S-3

REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OF 1933

 

STEREOTAXIS, INC.

 

Delaware94-3120386

Delaware
(State or other jurisdiction of

incorporation or organization)

 

3845
(Primary Standard Industrial Classification Code number)

94-3120386
(I.R.S. Employer

Identification No.)

4320 Forest Park Avenue,710 North Tucker Boulevard, Suite 100
110

St. Louis, Missouri 63108
(314) 678-6100
63101

(314) 678-6100

(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)

 

Copies of all correspondence to:

David L. Fischel

Chief Executive Officer

Stereotaxis, Inc.

4320 Forest Park Avenue,710 North Tucker Boulevard, Suite 100110

St. Louis, Missouri 6310863101

(314) 678-6100

(Name, address, including zip code, and

telephone number, including area code, of agent for service)

Copies of all correspondence to:

Robert J. Endicott, Esq.

Bryan Cave Leighton Paisner LLP

One Metropolitan Square

211 North Broadway, Suite 3600

St. Louis, Missouri 63102-2750

(314) 259-2000

(314) 259-2020 (fax)

 

 

 

Approximate date of commencement of proposed sale to public: From time to time on or after this registration statement becomes effective.

 

If the only securities being registered on this Form are being offered pursuant to dividend or interest reinvestment plans, please check the following box. [  ]

 

If any of the securities being registered on this formForm are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, other than securities offered only in connection with dividend or interest reinvestment plans, check the following box. [X]

 

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. [  ]

 

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. [  ]

 

If this Form is a registration statement pursuant to General Instruction I.D. or a post-effective amendment thereto that shall become effective upon filing with the Commission pursuant to Rule 462(e) under the Securities Act, check the following box. [  ]

 

If this Form is a post-effective amendment to a registration statement filed pursuant to General Instruction I.D. filed to register additional securities or additional classes of securities pursuant to Rule 413(b) under the Securities Act, check the following box. [  ]

 

Indicate by check mark whether the registrantRegistrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer [  ]Accelerated filer [  ]
Non-accelerated filer [X]

Smaller reporting company [X]

 Emerging growth company [  ]


 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. [  ]

 

 

CALCULATION OF REGISTRATION FEE

Title of Each Class Of Securities To
Be Registered
 Amount to be Registered(1)  Proposed Maximum Offering Price Per Unit(2) Proposed Maximum Aggregate Offering Price  Amount Of Registration Fee 
Common Stock, par value $0.001 per share  6,585,000  $3.50$23,047,500.00 $2,793.36
Common Stock, par value $0.001 per share, underlying Series B Convertible Preferred Stock  5,610,121(3) $3.50  19,635,423.50 $2,379.82
Total  12,195,121  $3.50 $42,682,923.50 $5,173.18

(1)This registration statement shall also cover any additional shares of common stock which become issuable by reason of any stock dividend, stock split, recapitalization or other similar transactions effected without the receipt of consideration which results in an increase in the number of outstanding shares of our common stock.
(2)Estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(c) under the Securities Act. The calculation of the fee is based upon the average of the high and low sales prices of our common stock as reported by the NYSE American LLC on September 13, 2019.
(3)Consists of 100% of the shares of common stock issuable upon conversion of 5,610,121 shares of Series B Convertible Preferred Stock, with each share of Series B Convertible Preferred Stock having a stated value of $2.05 per share and an initial conversion price into shares of common stock of $2.05 per share.

 

The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the Registration Statement shall become effective on such date as the SEC,Commission, acting pursuant to said Section 8(a), may determine.

 

 

 

 

 

THE INFORMATION IN THIS PROSPECTUS IS NOT COMPLETE AND MAY BE CHANGED. THE SECURITIES MAY NOT BE SOLD UNTIL THE REGISTRATION STATEMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION IS EFFECTIVE. THIS PROSPECTUS IS NOT AN OFFER TO SELL THESE SECURITIES AND IT IS NOT SOLICITING AN OFFER TO BUY THESE SECURITIES IN ANY STATE WHERE THE OFFER OR SALE IS NOT PERMITTED.

 

Subject to Completion, dated SeptemberMay 19, 20192023

 

PROSPECTUS

 

 

 

Common Stock, $0.001 par value
12,195,121 Shares$100,000,000

 

This prospectus relates to the resale,Debt Securities

Common Stock

Preferred Stock

Warrants

Rights

Units

We may offer and sell from time to time, in one or more offerings, up to $100,000,000 in the aggregate of 12,195,121 shares of ourdebt securities, common stock, bypreferred stock, warrants, rights or units consisting of any two or more of such securities. This prospectus provides a general description of the selling stockholders named herein. On August 7, 2019, we entered into a securities purchase agreement with the investors listed on the Schedule of Buyers thereto (together the “Buyers”), pursuant to which we sold in a private placement sale to the Buyers an aggregate of 6,585,000 shares of our common stock, $0.001 par value per share, at a price of $2.05 per share and 5,610,121 shares of our Series B Convertible Preferred Stock, $0.001 par value per share (the “Series B Convertible Preferred Stock”), which are convertible into shares of our common stock (the “Conversion Shares”) at a price of $2.05 per share.that may be offered.

 

Pursuant to theEach time we offer and sell securities, we will provide specific terms of the Registration Rights Agreement we entered into withsecurities to be offered and sold (including the Buyers, we are requiredamounts, prices and other terms) in a supplement to register (a) 100% of the number of shares of common stock and (b) 100% of the number of the Conversion Shares underlying the Series B Convertible Preferred Stock.

We are not selling any securities under this prospectus and will(which may include, but is not receive any of the proceeds from the sale of shareslimited to, an at-the-market sales agreement prospectus). This prospectus may not be used to sell securities unless accompanied by any selling stockholder. The selling stockholders may sell their respective shares of common stock described in thisa prospectus in a number of different ways and at varying prices. We provide more information about how the selling stockholders may resell their respective shares of our common stock in the section titled “Plan of Distribution” beginning on page 10. We will pay the expenses incurred in registering the shares, including legal and accounting fees.supplement.

 

Our common stock is tradedlisted on the NYSE American under the symbol “STXS.” On SeptemberAs of May 18, 2019,2023, the last reported saleclosing price forof our common stock was $1.69. Each prospectus supplement offering any securities other than our common stock will state whether those securities are listed or will be listed on the NYSE American was $4.40 per share.or any other securities market or other exchange.

We may offer securities through underwriting syndicates managed or co-managed by one or more underwriters, directly to purchasers or in any manner specified in a prospectus supplement. The prospectus supplement for each offering of securities will describe in detail the plan of distribution for that offering. For general information about the distribution of securities, see “Plan of Distribution” in this prospectus. No securities may be sold without delivery of this prospectus and the applicable prospectus supplement describing the method and terms of the offering of such securities.

 

You should read carefully this prospectus and the documents incorporated by reference in this prospectus before you invest. Investing in ourthese securities involves a high degree of risk. Before buying any securities, you should read the discussion of material risks of investing in our common stock under the heading “Risk Factors” beginningsignificant risks. See “Risk Factors” on page 32 of this prospectus.

 

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed upon the adequacy or accuracy of this prospectus. Any representation to the contrary is a criminal offense.NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR PASSED UPON THE ADEQUACY OR ACCURACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

 

The date of this prospectus is             , 2019.2023.

 

 

 

ABOUT THIS PROSPECTUS

 

This prospectus is part of a registration statement that we filed with the Securities and Exchange Commission, which we refer to as the “SEC,” utilizing a “shelf” registration process. Under this shelf registration process, we may, from time to time, sell any combination of the securities described in this prospectus in one or more offerings up to a total offering price of $100,000,000.

This prospectus provides you with a general description of the securities we may offer. Each time we offer and sell securities, we will provide a prospectus supplement to this prospectus that will contain specific information about the terms of that offering. We will file each prospectus supplement with the SEC. The prospectus supplement may also add, update or change information contained in this prospectus. If there is any inconsistency between the information in this prospectus and the applicable prospectus supplement, you should rely on the prospectus supplement. You should read both this prospectus and any prospectus supplement together with additional information described under the heading “Where You Can Find Additional Information” below.

You should only rely on the information contained in this prospectus and any prospectus supplement, including the information incorporated by reference. We have not authorized anyone to provide you with different information. The information contained in this prospectus and any prospectus supplement is complete and accurate only as of the date on its respective front cover, and any information incorporated by reference is accurate only as of the date of the document incorporated by reference, unless we indicate otherwise. The forward-looking statements included or incorporated by reference in this prospectus are only made as of the date of this prospectus or as of the date of such statement contained in the respective documents incorporated by reference herein, respectively, and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances even though our situation may change in the future.

i

TABLE OF CONTENTS

 Page
PROSPECTUS SUMMARYTHE COMPANY1
  
RISK FACTORS2
FORWARD-LOOKING STATEMENTS3
  
FORWARD-LOOKING STATEMENTSUSE OF PROCEEDS84
  
USEDESCRIPTION OF PROCEEDSDEBT SECURITIES85
  
SELLING STOCKHOLDERSDESCRIPTION OF CAPITAL STOCK812
  
PLANDESCRIPTION OF DISTRIBUTIONWARRANTS1017
  
DESCRIPTION OF SECURITIESRIGHTS1318
  
DESCRIPTION OF UNITS19
PLAN OF DISTRIBUTION20
LEGAL MATTERS1722
  
EXPERTS1722
  
WHERE YOU CAN FIND ADDITIONAL INFORMATION1822
  
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE1823

 

iii

 

PROSPECTUS SUMMARYTHE COMPANY

 

This summary highlights selected information about Stereotaxis, Inc. and a general description of the securities that may be offered for resale or other disposition by the selling stockholders. This summary is not complete and does not contain all of the information that may be important to you. For a more complete understanding of us and the securities offered by the selling stockholders, you should carefully read this entire prospectus, including the “Risk Factors” section, any applicable prospectus supplement for these securities and the other documents we refer to and incorporate by reference. In particular, we incorporate important business and financial information into this prospectus by reference.

The Company

Stereotaxis designs, manufactures and markets robotic systems, instruments and information systems for the interventional laboratory. Our proprietary robotic technology, Robotic Magnetic Navigation, fundamentally transforms endovascular interventions using precise computer-controlled magnetic fields to directly control the tip of flexible interventional catheters or devices. Direct control of the tip of an advanced robotic navigation systeminterventional device, in contrast to all manual hand-held devices that are controlled from their handle, can improve the precision, stability, reach and safety of these devices during procedures.

Our primary clinical focus has been electrophysiology, specifically cardiac ablation procedures for use in a hospital’s interventional surgical suite or “interventional lab”, that we believe revolutionizes the treatment of arrhythmias. Cardiac ablation has become a well-accepted therapy for arrhythmias and a multi-billion-dollar medical device market with expectations for substantial long-term growth. We have shared our aspiration and a product strategy to expand the clinical focus of our technology to several additional endovascular indications including coronary, artery diseaseneuro, and peripheral interventions.

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 400 clinical publications. Robotic Magnetic Navigation is designed to enable physicians to complete more complex interventional procedures with greater success and safety by enabling enhanced safety, efficiency,providing image-guided delivery of catheters through the blood vessels and efficacy for catheter-basedchambers 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 interventional procedures. unsuccessful and generates significant x-ray exposure.

Our primary products include the Genesis® Robotic Magnetic Navigation Genesis RMN System, (“the GenesisOdyssey System”), Niobe® ES Magnetic Navigation System (“Niobe ES System”), Odyssey® Information Management Solution, (“Odyssey Solution”),and other related devices. We also offer our customers the Vdrive® Robotic Navigation System (“Vdrive System”), Stereotaxis Imaging Model S x-ray system,System and relatedother accessory devices.

 

Both theThe Genesis RMN System System and theNiobe ES System areis designed to enable physicians to complete more complex interventional procedures by providing image-guided delivery of catheters and guidewires through the blood vessels and chambers of the heart to treatment sites. This is achieved using externally applied magnetic fields that govern the motion of the working tip of the catheter, or guidewire, resulting in improved navigation, efficient procedures, and reduced X-rayx-ray exposure.

 

In addition to the robotic navigation systems and their components, Stereotaxis has also developed theThe Odyssey Solution Solution, which consolidates all lab information onto one large integrated display, enabling doctorsphysicians to focus onview and control all the patient for optimalkey information in the operating room. This is designed to improve lab layout and procedure efficiency. The platformsystem also features a remote viewing and recording capability called the Odyssey Cinema™ System,Cinema, which is an innovative system deliveringsolution that delivers synchronized content for optimized workflow, advanced care, and improved productivity. This tool includes an archiving capability that allows clinicians to store and replay entire procedures or segments of procedures. This information can be accessed from locations throughout the hospital’shospital local area network and over the globalOdyssey Network providing physicians with a tool for clinical collaboration, remote consultation, and training.

 

OurVdrive SystemThe Stereotaxis Imaging Model S provides navigationan integrated complete solution for a robotic interventional operating room. It is a single-plane, full-power x-ray system and stabilityincludes the c-arm, powered table, motorized boom, and large high-definition monitors. Stereotaxis Imaging Model S incorporates modern fluoroscopy technology to support high quality imaging while minimizing radiation exposure for diagnosticpatients and therapeutic devicesphysicians. The combination of RMN Systems with Stereotaxis Imaging Model S is designed to improve interventional procedures. TheVdrive System complementsreduce the magnetic navigation systems’ controlcost of therapeutic catheters for fully remote procedures and enables single-operator workflow. It is sold as two options,acquisition, theVdrive System ongoing cost of ownership, and the Vdrive Duo™ System. In addition to theVdrive System and theVdrive Duo System, we also manufacture and market various disposable components which can be manipulated by these systems.complexity of installation of a robotic electrophysiology practice.

 

We promote our full suite of products in a typical hospital implementation, subject to regulatory approvals or clearances. This implementation requires a hospital to agree to an upfront capital payment and recurring payments. The upfront capital payment typically includes equipment and installation charges. The recurring payments typically include disposable costs for each procedure, equipment service costs beyond the warranty period, and ongoing software licenses.updates. In hospitals where our full suite of products has not been implemented, equipment upgrade or expansion maycan be implemented upon purchasepurchasing of the necessary components.

TheNiobe System,Odyssey Workstation,Cardiodrive, and various disposable interventional devices have received regulatory clearance in the United States, European Union, Canada, China, Japan and various other countries. We have received regulatory clearance, licensing and/upgrade or CE Mark approvals necessary for us to market theVdrive andVdrive Duo systems with theV-CAS,V-Loop andV-Sono devices in the U.S., Canada and European Union. TheGenesis system and theV-CAS Deflect Catheter Advancement System have been CE Marked for sale in the European Union. Stereotaxis Imaging Model S is CE marked and FDA cleared.

1

expansion.

 

We have strategic relationships with technology leaders and innovators in the global interventional market. Through these strategic relationships we provide compatibility between our robotic magnetic navigation system and digital imaging and 3D catheter location sensing technology, as well as disposable interventional devices, in order to continue to develop new solutions in the interventional lab.devices. The maintenance of these strategic relationships, or the establishment of equivalent alternatives, is critical to our commercialization efforts. The commercial availability of currently compatible digital imaging fluoroscopy systems is unlikely toThere are no guarantees that any existing strategic relationships will continue, and efforts are being madeongoing to ensure the availability of integrated next generation systems and devices and/or equivalent alternatives; however, wealternatives. We cannot provide assurance as to the timeline of the ongoing availability of such compatible systems or our ability to obtain equivalent alternatives on competitive terms or at all.

 

Since our inception, we have generated significant losses. As of June 30, 2019, we have incurred cumulative net losses of approximately $480.3 million. We expect to continue to incur operating losses and negative cash flows until revenues reach a level sufficient to support ongoing operations. During 2019, we will continue to monitor operating expenses and make additional investments in certain targeted areas.

We were incorporated in Delaware in June 1990. Our principal executive offices are located at 4320 Forest Park Avenue,710 North Tucker Boulevard, Suite 100, St.110, Saint Louis, Missouri 63108,63101, and our telephone number is (314) 678-6100. Our website address is www.stereotaxis.com. Information contained on our website is not incorporated by reference into and does not form any part of this prospectus. As used in this prospectus, references to “Company”, “we”, “our”, “us” and “Stereotaxis” refer to Stereotaxis, Inc. unless the context requires otherwise. Epoch®Genesis RMN®, Genesis®Niobe®, Niobe®Navigant®, Odyssey®Odyssey®, Odyssey Cinema™Cinema, Vdrive®Vdrive®, Vdrive Duo™, V-CAS™, V-Loop™, V-Sono™Duo, V-CAS Deflect™, QuikCAS™V-Loop, V-Sono, QuikCASand Cardiodrive® Cardiodrive® are trademarks of Stereotaxis, Inc. All other trademarks that may appear in this prospectusreport are the property of their respective owners.

Securities Being Offered

This prospectus relates to the offer, resale or other disposition of 6,585,000 shares of our common stock and 5,610,121 shares of our common stock issuable upon the conversion of our Series B Convertible Preferred Stock (as defined below). The shares of common stock and the shares of Series B Convertible Preferred Stock were issued in the transactions described below, and the selling stockholders are identified in the section entitled “Selling Stockholders” on page 8, below. We are registering the offer, resale or other disposition of these securities by the selling stockholders or their transferees. We will not receive any proceeds from the sale of the shares of common stock by the selling stockholders. The registration of these shares of common stock does not necessarily mean that any of them will be offered or sold by the selling stockholders. The securities may be sold directly or through brokers, dealers or agents in private or market transactions. In connection with any sales, the selling stockholders and any brokers, dealers or agents participating in such sales may be deemed to be “underwriters” within the meaning of the Securities Act of 1933, as amended (the “Securities Act”), and the rules and regulations thereunder. See “Plan of Distribution.”

On August 7, 2019, we entered into a Securities Purchase Agreement (the “SPA”) with the investors listed on the Schedule of Buyers thereto (together the “Buyers”), pursuant to which we sold in a private placement to the Buyers, an aggregate of 6,585,000 shares of our common stock, $0.001 par value per share, at a price of $2.05 per share and 5,610,121 shares of our Series B Convertible Preferred Stock, $0.001 par value per share (the “Series B Convertible Preferred Stock”), which are convertible into shares of our common stock (the “Conversion Shares”) at a price of $2.05 per share. This transaction (the “Private Placement”) closed on August 7, 2019.

Net proceeds from the sale of the securities under the SPA were approximately $23.1 million, after offering expenses. The Company plans to use the funds for general corporate purposes.

In connection with the Private Placement, we entered into a registration rights agreement with the Buyers (the “Registration Rights Agreement”), under which we agreed to undertake to file one or more registration statements on behalf of the selling stockholders with respect to the offer, resale or other disposition of the common stock and the Conversion Shares issuable upon the conversion of the Series B Convertible Preferred Stock.

 

21

 

RISK FACTORS

 

Investing in our securities involves a high degree of risk. Prior to making a decision about investing in our securities, you should carefully consider the risks and uncertainties described under “Risk Factors” in our most recent Annual Report on Form 10-K filed for the period ended December 31, 2022 and any updates in our subsequently filed Quarterly Reports on Form 10-Q, together with all other information appearing in or incorporated by reference in,into this prospectus including theand any applicable prospectus supplement, in light of your particular investment objectives and financial circumstances. These risks described belowcould materially and under the caption “Risk Factors”adversely affect our business, results of operations and financial condition and could result in our Annual Report on Form 10-K for the year ended December 31, 2018, and in any other reports that we file with the Securities and Exchange Commission (the “SEC”), along with the other information includeda partial or incorporated by reference in this prospectus, in evaluating an investment in our common stock. The information included or incorporated by reference in this prospectus may be amended, supplemented or superseded from time to time by other reports we file with the SEC in the future. For a descriptioncomplete loss of these reports and documents, and information about where you can find them, see the sections entitled “Where You Can Find Additional Information” and “Incorporation of Certain Documents by Reference” in this prospectus.your investment.

2

FORWARD-LOOKING STATEMENTS

 

The risks and uncertainties described in this prospectus, and the documents incorporated by reference in this prospectus represent all the material risks known to us, but they are not the only ones facing us. Additional risks and uncertainties that we do not presently know about or that we currently believe are not material may also adversely affect our business. If any of the risks and uncertainties described in this prospectus orincluding the documents incorporated by reference herein, actually occur, our business, financial condition and results of operations could be adversely affected in a material way. As a result, the trading price of our common stock and/or the value of any other securities we may issue may decline, and you might lose part or all of your investment.

We may not generate cash from operations or be able to raise the necessary capital to continue operations.

We may require additional funds to meet our operational, working capital and capital expenditure needs in the future. We cannot be certainfree writing prospectus that we will be able to obtain additional funds on favorable terms or at all. If we cannot raise capital on acceptable terms, we will not be able to, among other things:

maintain customer and vendor relationships;
hire, train and retain employees;
maintain or expand our operations;
enhance our existing products or develop new ones;
respond to competitive pressures; or
service our debt obligations and meet our financial covenants.

Our failure to do any of these things could result in lower revenue and adversely affect our financial condition and results of operations, and we may have to curtail or cease operations.

We may not be able to comply with debt covenants and may have to repay outstanding indebtedness.

Our current borrowing agreement contains various covenants, including financial covenants under our credit agreement with our primary lender. If we violate our covenants, it could impact our ability to borrow and we could be required to repay any related outstanding debt. We could be unable to make these payments, which could lead to insolvency. Even if we are able to make these payments, it will lead to the lack of availabilityauthorized for additional borrowings under our bank loan agreement due to our borrowing capacity. There can be no assurance that we will be able to maintain compliance with these covenants or that we could replace this source of liquidity if these covenants were to be violated and our loans and other borrowed amounts were forced to be repaid.

3

Our principal stockholders continue to own a large percentage of our voting stock, and they have the ability to substantially influence matters requiring stockholder approval.

Certain of our directors and individuals or entities affiliated with them as well as other principal stockholders beneficially own or control a substantial percentage of the outstanding shares of our common stock. Accordingly, these stockholders acting as a group, will have substantial influence over the outcome of corporate actions requiring stockholder approval, including the election of directors, any merger, consolidation or sale of all or substantially all of our assets or any other significant corporate transaction. These stockholders may also delay or prevent a change of control, even if such a change of control would benefit our other stockholders. This significant concentration of stock ownership may adversely affect the trading price of our common stock due to investors’ perception that conflicts of interest may exist or arise.

Future issuances of our securities could dilute current stockholders’ ownership.

We are registering for offer, resale or other disposition 12,195,121 shares of our common stock, 5,610,121 shares of which are issuable upon the conversion of our Series B Convertible Preferred Stock, in each case held by the selling stockholders identified in this prospectus or their transferees.

In addition, as of June 30, 2019, we had 42.8 million shares of our common stock issuable upon conversion of our Series A Convertible Preferred Stock bearing dividends at a rate of six percent (6.0%) per annum, which are cumulative and accrue daily from the date of issuance on the $1,000 stated value. Such dividends will not be paid in cash, exceptuse in connection with any liquidation, dissolution or winding up of the Company or any redemption of the Series A Convertible Preferred Stock. Instead, the value of the accrued dividends is added to the liquidation preference of the Series A Convertible Preferred Stock and will increase the number of shares of common stock issuable upon conversion, which will dilute the ownership of our common stockholders.

Moreover, a significant number of shares of our common stock are subject to stock options and stock appreciation rights, and we may request the ability to issue additional such securities to our employees. We may also decide to raise additional funds through public or private debt or equity financing to fund our operations. While we cannot predict the effect, if any, that future sales of debt, our common stock, other equity securities or securities convertible into our common stock or other equity securities or the availability of any of the foregoing for future sale, will have on the market price of our common stock, it is likely that sales of substantial amounts of our common stock (including shares issued upon the exercise of stock options, stock appreciation rights or the conversion of any convertible securities outstanding now or in the future, including the Series A Convertible Preferred Shares) will dilute the ownership interest of our existing stockholders and that the perception that such sales could occur could adversely affect prevailing market prices for our common stock.

Further, the Series A Convertible Preferred Shares rank senior to our common stock and our Series B Convertible Preferred Stock as to distributions and payments upon the liquidation, dissolution and winding up of the Company. No such distributions or payments upon the liquidation, dissolution or winding up of the Company may be made to holders of common stock or holders of the Series B Convertible Preferred Stock unless and until the holders of the Series A Convertible Preferred Shares have received the stated value of $1,000 per share plus any accrued and unpaid dividends. Until all Series A Convertible Preferred Shares have been converted or redeemed, no dividends may be paid on the common stock or the Series B Convertible Preferred Stock without the express written consent of the holders of a majority of the outstanding Series A Convertible Preferred Shares. In the event that dividends or other distributions of assets are made or paid by the Company to the holders of the common stock or the holders of the Series B Convertible Preferred Stock, the holders of Series A Convertible Preferred Shares are entitled to participate in such dividend or distribution on an as-converted basis. Any such distributions or payments upon the liquidation, dissolution or winding up of the Company may dilute the ownership interests of our existing stockholders.

4

We have never paid dividends on our capital stock, and we do not anticipate paying any cash dividends in the foreseeable future.

We have paid no cash dividends on any of our classes of capital stock to date and we currently intend to retain our future earnings to fund the development and growth of our business. In addition, the terms of our loan agreement prohibit us from declaring dividends without the prior consent of our lender. As a result, capital appreciation, if any, of our common stock will be an investor’s sole source of gain for the foreseeable future.

Our certificate of incorporation and bylaws, Delaware law, and one of our collaboration agreements contain provisions that could discourage a takeover.

Our certificate of incorporation and bylaws and Delaware law contain provisions that might enable our management to resist a takeover. These provisions may:

discourage, delay or prevent a change in control of our company or a change in our management;
adversely affect the voting power of holders of common stock; and
limit the price that investors might be willing to pay in the future for shares of our common stock.

In addition, our collaboration agreement with Biosense Webster contains provisions that may similarly discourage a takeover and negatively affect our share price as described above.

Evolving regulation of corporate governance and public disclosure may result in additional expenses and continuing uncertainty.

Changing laws, regulations and standards relating to corporate governance and public disclosure, including the new SEC regulations such as the Dodd-Frank Wall Street Reform and Consumer Protection Act have in the past created uncertainty for public companies. We continue to evaluate and monitor developments with respect to new and proposed rules and cannot predict or estimate the amount of the additional compliance costs we may incur or the timing of such costs. These new or changed laws, regulations and standards are subject to varying interpretations, in many cases due to their lack of specificity, and as a result, their application in practice may evolve over time as new guidance is provided by courts and regulatory and governing bodies. This could result in uncertainty regarding compliance matters and higher costs necessitated by ongoing revisions to disclosure and governance practices. Maintaining appropriate standards of corporate governance and public disclosure may result in increased general and administrative expense and diversion of management time and attention from revenue-generating activities to compliance activities. In addition, if we fail to comply with new or changed laws, regulations and standards, regulatory authorities may initiate legal proceedings against us and our business and reputation may be harmed.

Our future operating results may be below securities analysts’ or investors’ expectations, which could cause our stock price to decline.

The revenue and income potential of our products and our business model are unproven, and we may be unable to generate significant revenue or grow at the rate expected by securities analysists or investors. In addition, our costs may be higher than we, securities analysts, or investors expect. If we fail to generate sufficient revenue or our costs are higher than we expect, our results of operations will suffer, which in turn could cause our stock price to decline. Our results of operations will depend upon numerous factors, including:

demand for our products;
the performance of third-party contract manufacturers and component suppliers;
our ability to develop sales and marketing capabilities;
the success of our strategic relationships with fluoroscopy system manufacturers and providers of catheters and electrophysiology mapping systems;
our ability to develop, introduce and market integrated next generation systems and/or alternatives to our current strategic relationships with fluoroscopy system manufacturers and catheter and electrophysiology mapping system providers on a timely basis;

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our ability to develop, introduce and market new or enhanced versions of our products on a timely basis;
our ability to obtain regulatory clearances or approvals for our new products; and
our ability to obtain and protect proprietary rights.

Our operating results in any particular period may not be a reliable indication of our future performance. In some future quarters, our operating results may be below the expectations of securities analysists or investors. If this occurs, the price of our common stock will likely decline.

Given that the stock of the Company is thinly traded, liquidity could be impacted by a variety of events.

In August 2016, the Nasdaq Capital Market (“Nasdaq”) delisted our common stock due to our failure to meet certain applicable requirements. Shares of our common stock then began trading on the OTCQX® Best Market under the Company’s existing ticker symbol of “STXS.” On September 5, 2019, the common stock of the Company ceased trading on the OTCQX® Best Market at the close of trading and began trading on the NYSE American under the symbol “STXS” at the open of trading on September 6, 2019. Despite the move to a national securities exchange, any of the aforementioned risk factors could negatively impact the liquidity of our common stock with the volume being insufficient to provide for efficient market trading and our ability to access the capital markets, which could impair the value of your investment.

Furthermore, our common stock may not continue to trade on the NYSE American in the future, broker-dealers may cease to provide public quotes of our common stock on this market, or the trading volume of our common stock may be insufficient to provide for an efficient trading market. Any such developments could impair the value of your investment.

We expect that the price of our common stock could fluctuate substantially, possibly resulting in class action securities litigation.

Trading volume has been historically limited and/or sporadic. The market price of our common stock has experienced substantial volatility, and this may continue even though our common stock began trading on the NYSE American on September 6, 2019. During 2018, our common stock traded between $0.51 and $1.65 per share, on trading volume ranging from none to approximately 300,000 shares per day. In 2019, our common stock has traded between $1.07 and $4.75 per share, on trading volume ranging from approximately 2,800 to 763,500 shares per day. During nearly all of this time, our common stock was trading on the OTCQX Best Market.

The market price of our common stock will be affected by a number of factors, including:

actual or anticipated variations in our results of operations or those of our competitors;
the receipt or denial of regulatory approvals;
changing regulatory requirements, particularly in the EU, making market access more difficult;
announcements of new products, technological innovations or product advancements by us or our competitors;
developments with respect to patents and other intellectual property rights;
decisions of acute care hospitals in both the United States and abroad to make or defer capital purchases based upon economic factors, statutory or regulatory changes, changes in the standard of care, competitive alternatives, and changes in reimbursement for procedures, among other factors;
changes in earnings estimates or recommendations by securities analysts or our failure to achieve analyst earnings estimates;

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developments in our industry; and
participants in the market for our common stock may take short positions with respect to our common stock.

These factors, as well as general economic, credit, political and market conditions, may materially adversely affect the market price of our common stock. As with the stock of many other public companies, the market price of our common stock has been particularly volatile during the recent period of upheaval in the capital markets and world economy. This excessive volatility may continue for an extended period of time following the filing date of this report. Furthermore, the stock prices of many companies in the medical device industry have experienced wide fluctuations that have often been unrelated to the operating performance of these companies. Volatility in the price of our common stock on the NYSE American may depress the trading price of our common stock, which could, among other things, allow a potential acquirer of the Company to purchase a significant amount of our common stock at low prices. In addition, the volatility of our stock price could lead to class action securities litigation being filed against us, which could result in substantial costs and a diversion of our management resources, which could significantly harm our business.

If we are unable to use a short form registration statement on Form S-3, it may adversely affect our ability to access the capital markets in the future, if needed.

A Registration Statement on Form S-3 permits an eligible issuer to incorporate by reference its past and future filings and reports made under the Securities and Exchange Act of 1934, as amended, or the Exchange Act. In addition, Form S-3 enables eligible issuers to conduct primary offerings “off the shelf” under Rule 415 of the Securities Act of 1933, as amended, or the Securities Act. The shelf registration process under Form S-3 combined with the ability to incorporate information on a forward basis, allows issuers to avoid additional delays and interruptions in the offering, process and to access the capital markets in a more expeditious and efficient manner than raising capital in a standard offering on Form S-1.

To be eligible to use Form S-3 for a registered offering of securities to investors, an issuer must generally have a public float (which consists of the aggregate market value of a class of equity stock held by non-affiliates) in excess of $75 million. Issuers may also use Form S-3 in circumstances where their public float is below the $75 million threshold, subject to certain requirements and limitations, the most relevant of which would require the issuer to have a class of common equity securities listed and registered on a national securities exchange. Although we currently meet the $75 million public float requirement, in the recent past we have been below that threshold and cannot assure you that we will remain above it in the future. We have in the recent past not been able to use Form S-3 as a practical matter because our common stock has not been listed and registered on a national securities exchange. If we again become ineligible to use Form S-3, we will be required to use long form registration if we wanted to conduct a registered offering of securities to investors, and may experience delays in that process. In addition, our ability to undertake certain types of financing transactions could become limited or unavailable to us if we again became ineligible to use Form S-3. Furthermore, because of the delay associated with long form registration and the limitations on the financing transactions we may desire to undertake in the future, the terms of any financing transaction we are able to conduct may not be advantageous to us or may cause us not to obtain capital in a timely fashion to execute our business strategies.

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FORWARD-LOOKING STATEMENTS

The prospectus contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1985. These forward-looking statements relate to, among other things:

 

 our business strategy;operating, sales and marketing, and regulatory strategies;
   
 our value proposition;
   
 

the impact of the coronavirus (“COVID-19”) pandemic and our responses to it:

our overall liquidity and our ability to fund operations;
   
 ourOur ability to convert backlog to revenue;
   
 the ability of physicians to perform certain medical procedures with our products safely, effectively and efficiently;
   
 the adoption of our products by hospitals and physicians;
   
 the market opportunity for our products, including expected demand for our products;
   
 the timing and prospects for regulatory approval of our additional disposable interventional devices;
   
 the success of our business partnerships and strategic relationships;
   
 our industry generally, and overall economic conditions;
our estimates regarding our capital requirements;
   
 our plans for hiring additional personnel; and
   
 any of our other plans, objectives, expectations and intentions contained or incorporated into this prospectus that are not historical facts.

 

These statements relate to future events or future financial performance, and involveare subject to known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may”, “will”, “should”, “could”, “expects”, “plans”, “intends”, “anticipates”, “believes”, “estimates”, “predicts”, “potential”, or “continue”, or the negative of such terms or other comparable terminology. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. These statements are only predictions.

 

Factors that may cause our actual results to differ materially from ourthose expressed or implied in forward-looking statements include, among others, changes in general economic and business conditions and the risks and other factors set forth in “Risk“Item 1A—Risk Factors” in this prospectus and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2018.2022 and any updates in our subsequently filed Quarterly Reports on Form 10-Q.

 

Our actual results may be materially different from what we expect. Therefore, you should not rely upon forward-looking statements as predictions of future events. We undertake no duty to update theseor revise such forward-looking statements after the date of this prospectus, even though our situation may change in the future.whether as a result of new information, future events or otherwise. We qualify all of our forward-looking statements by these cautionary statements.

 

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USE OF PROCEEDS

Unless otherwise indicated in a prospectus supplement, we intend to use the net proceeds of any offering of securities sold by us for general corporate purposes, which may include acquisitions, repayment of debt, capital expenditures and working capital requirements. The net proceeds may be invested temporarily in short-term marketable securities or applied to repay short-term debt until they are used for their stated purpose.

 

We have not yet determined the amount or timing of the expenditures for each of the categories listed above and these expenditures may vary significantly depending on a variety of factors, including the timing of additional regulatory approvals and new product introductions. As a result, unless otherwise indicated in the applicable prospectus supplement, our management will not receive anyretain broad discretion in the allocation and use of the net proceeds from the selling stockholders’ sales of our common stock. However, at the time the shares of common stock and Series B Convertible Preferred Stock were originally issued to the selling stockholders, we did receive payment for the purchase price for those securities.

We will pay for expenses of this offering, except that the selling stockholders will pay any underwriting discounts or commissions or equivalent expenses applicable to the sale of their shares.

SELLING STOCKHOLDERS

This prospectus relates to the offer, resale or other disposition of 6,585,000 shares of our common stock and 5,610,121 shares of common stock issuable upon the conversion of our Series B Convertible Preferred Stock (as defined below). For additional information regarding the issuance of the Series B Convertible Preferred Stock, see “Prospectus Summary – Securities Being Offered” above. We are registering the shares of common stock in order to permit the selling stockholders to offer the shares for resale from time to time. Except for the ownership of the common stock and the Series B Convertible Preferred Stock, the selling stockholders have not had any material relationship with us within the past three years.offering.

 

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DESCRIPTION OF DEBT SECURITIES

General

 

The tabledebt securities that we may issue will constitute debentures, notes, bonds or other evidences of indebtedness of Stereotaxis, to be issued in one or more series, which may include senior debt securities, subordinated debt securities and senior subordinated debt securities. The particular terms of any series of debt securities we offer, including the extent to which the general terms set forth below listsmay be applicable to a particular series, will be described in a prospectus supplement relating to such series.

Debt securities that we may issue will be issued under an indenture between us and a trustee qualified to act as such under the selling stockholdersTrust Indenture Act of 1939. We have filed the form of the indenture as an exhibit to the Registration Statement of which this prospectus is a part. When we refer to the “indenture” in this prospectus, we are referring to the indenture under which debt securities are issued as supplemented by any supplemental indenture applicable to such debt securities. We will provide the name of the trustee in any prospectus supplement related to the issuance of debt securities, and we will also provide certain other information regarding their beneficial ownership (as determined under Section 13(d)related to the trustee, including describing any relationship we have with the trustee, in such prospectus supplement.

The following description is a summary of the Securities Exchangematerial provision of the indenture. It does not restate the terms of the indenture in their entirety. The indenture is governed by the Trust Indenture Act of 1934, as amended (the “Exchange Act”), and the rules and regulations thereunder) of shares of our common stock. These rules generally provide that a person is the beneficial owner of securities if such person has or shares the power to vote or direct the voting thereof, or to dispose or direct the disposition thereof, or has the right to acquire such powers within 60 days.1939. The second column lists the number of shares of common stock beneficially owned by the selling stockholders as of August 23, 2019. The fourth column lists the shares of common stock being offered by this prospectus by the selling stockholders.

In accordance with a registration rights agreement with the holdersterms of the common stockdebt securities include those stated in the indenture and the Series B Convertible Preferred Stock, this prospectus covers the offer, resale or other dispositionthose made part of the sum of (i) 100%indenture by reference to the Trust Indenture Act. We urge you to read the indenture because it, and not this description, defines your rights as a holder of the number of shares of common stock issued to the holders pursuant to the SPA and (ii) 100% of the number of shares of common stock issuable upon conversion of the Series B Convertible Preferred Stock, in each case, determined as if the outstanding Series B Convertible Preferred Stock were converted in full (without regard to any limitations on conversion or exercise contained in the Certificate of Designations for the Series B Convertible Preferred Stock) as of August 23, 2019. Percentage ownership is based on 66,084,239 shares of common stock outstanding as of August 23, 2019. The selling stockholders may sell all, some or none of their shares in this offering. See “Plan of Distribution.” This information is based upon our review of public filings, our stockholder, optionholder and warrantholder registers and information furnished by the selling stockholders.

Name and Address of
Selling Stockholder
 Shares Beneficially Owned Prior to the Offering (1)  Maximum Number of Shares Offered by This Prospectus (2)  Shares Beneficially Owned Subsequent to the Offering (1)(3) 
  Shares  Percent     Shares  Percent 
                
Entities affiliated with Redmile Group, LLC (4)
One Letterman Drive, Building D, Suite D3-300 San Francisco, CA 94129
  6,969,941   9.99%  8,895,121   0   0%
                     

Opaleye L.P. (5)
One Boston Place

26thFloor

Boston, MA 02018

  4,070,000   6.16%  3,000,000   1,070,000   1.62%

Whitney Capital Series Fund LLC
460 Park Ave, 19th Floor

New York, NY 10022

  177,570   *   115,070   62,500   * 

Schonfeld Fundamental Equity Fund LLC
460 Park Ave, 19th Floor

New York, NY 10022

  177,566   *   115,066   62,500   * 

Parkman HP Master Fund
700 Canal Street

2ndFloor

Stamford, CT 06902

  107,811   *   69,864   37,947   * 

*Less than one percent.
(1)Beneficial ownership is determined in accordance with the rules of the SEC and generally includes voting or investment power with respect todebt securities.

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(2)Pursuant to the Certificate of Designations, Preferences, Rights and Limitations of Series B Convertible Preferred Stock of Stereotaxis, Inc., the Company may not effect a conversion and a selling stockholder of the Series B Convertible Preferred Stock does not have the right to convert any portion of the shares of Series B Convertible Preferred Stock held by such selling stockholder to the extent that, after giving effect to the attempted conversion set forth in a notice of conversion, such selling stockholder, together with such selling stockholder’s affiliates and any other person whose beneficial ownership of shares of common stock would be aggregated with such selling stockholder’s for purposes of Section 13(d) of the Exchange Act and the applicable regulations of the SEC, including any “group” of which such selling stockholder is a member, would beneficially own more than 9.99% of our common stock then issued and outstanding (the “Beneficial Ownership Limitation”). The 9.99% Beneficial Ownership Limitation percentage may be changed at a holder’s election upon 61 days’ notice to the Company. Includes 100% of the shares of common stock issued to the selling stockholders pursuant to the SPA and 100% of the shares of common stock issuable upon conversion of the Series B Convertible Preferred Stock at the current conversion price without regard to the 9.99% Beneficial Ownership Limitation.
(3)Assumes for each stockholder the conversion in full of all shares of Series B Convertible Preferred Stock held by such stockholder without regard to the 9.99% Beneficial Ownership Limitation and the sale of all shares offered hereby and that the selling stockholders do not acquire beneficial ownership of any additional shares.
(4)Based on the Company’s records and a Schedule 13G filed with the SEC on August 12, 2019 by Redmile Group, LLC (“Redmile”), Jeremy C. Green, Redmile Strategic Master Fund, LP (“Strategic Fund”), Redmile Capital Offshore II Master Fund, Ltd. (“Master Fund” and together with Strategic Fund, the “Redmile Affiliates”), the shares of the Company’s common stock that may be deemed to be beneficially owned by entities affiliated with Redmile is comprised of: (i) 1,701,400 shares of common stock held by Strategic Fund, (ii) 1,583,600 shares of common stock held by Master Fund, (iii) 2,905,600 shares of common stock issuable upon the conversion of shares of Series B Convertible Preferred Stock held by Strategic Fund, and (iv) 2,704,521 shares of common stock issuable upon the conversion of shares of Series B Convertible Preferred Stock held by Master Fund. Redmile is the investment manager/adviser to each of the Redmile Affiliates and, in such capacity, exercises sole voting and investment power over all of the shares held by the Redmile Affiliates and may be deemed to be the beneficial owner of these shares, subject to the Beneficial Ownership Limitation. Jeremy C. Green serves as the principal of Redmile and also may be deemed to be the beneficial owner of these shares, subject to the Beneficial Ownership Limitation. Redmile and Mr. Green each disclaim beneficial ownership of these shares, except to the extent of its or his pecuniary interest in such shares, if any. The Series B Convertible Preferred Stock is initially convertible into shares of common stock on a one-for-one basis. The 6,969,941 shares of common stock reported as beneficially owned prior to the offering by entities affiliated with Redmile represents 9.99% of the outstanding shares of common stock as of August 23, 2019, assuming the conversion of 3,684,941 shares of Series B Convertible Preferred Stock into 3,684,941 shares of common stock, which, due to the Beneficial Ownership Limitation, is the maximum number of shares of Series B Convertible Preferred Stock that could be converted to common stock as of August 23, 2019.
(5)Based on the Company’s records and a Schedule 13G filed on August 16, 2019, by Opaleye L.P. (the “Opaleye Fund”), Opaleye Management, Inc. (the “Investment Manager”) and Mr. James Silverman. The Investment Manager serves as investment manager of the Opaleye Fund and Mr. Silverman is the President of the Investment Manager. Each of the Opaleye Fund, the Investment Manager and Mr. Silverman hold shared voting and dispositive power over the shares held by the Opaleye Fund.

PLAN OF DISTRIBUTION

 

We are registering the shares of common stock previously issued to the selling stockholders and the shares of common stock issuable upon the conversion of the Series B Convertible Preferred Stock previously issued to the selling stockholders in order to permit the selling stockholders to offer the shares for resaleInformation You Will Find In The Prospectus Supplement

The indenture provides that we may issue debt securities from time to time after the date of this prospectus. We will not receive any of the proceeds from the sale by the selling stockholders of the shares of common stock. We will bear all fees and expenses incident to our obligation to register the shares of common stock.

The selling stockholders, which as used herein includes donees, pledgees, transferees or other successors-in-interest selling shares of common stock or interests in shares of common stock received after the date of this prospectus from a selling stockholder as a gift, pledge, partnership distribution or other transfer, may, from time to time, sell, transfer or otherwise dispose of any or all of their shares of common stock or interests in shares of common stock on any stock exchange, market or trading facility on which the shares are traded or in private transactions directly or through one or more underwriters, broker-dealers or agents. If the shares of common stock or interests in shares of common stock are sold through underwriters or broker-dealers, the selling stockholders will be responsible for underwriting discounts or commissions or agent’s commissions. These dispositions may be sold in one or more transactions, at fixed prices, at prevailing market prices atseries and that we may denominate the timedebt securities and make them payable in foreign currencies. The indenture does not limit the aggregate principal amount of sale, at prices relateddebt securities that can be issued thereunder. The prospectus supplement for a series of debt securities will provide information relating to the prevailing market price, at varying prices determined atterms of the timeseries of sale, or at negotiated prices. These sales may be effected in transactionsdebt securities being offered, which may involve cross or block transactions.

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The selling stockholders may use any one or more of the following methods when disposing of shares or interests therein:include:

 

 transactions on any nationalthe title and denominations of the debt securities exchange or U.S. inter-dealer quotation system of a registered national securities association on which the shares may be listed or quoted at the time of sale;series;
   
 over-the-counter market transactions;any limit on the aggregate principal amount of the debt securities of the series;
   
 transactions otherwise thanthe date or dates on these exchangeswhich the principal and premium, if any, with respect to the debt securities of the series are payable or systems or in the over-the-counter market;method of determination thereof;
   
 ordinary brokerage transactions and transactions inthe rate or rates, which may be fixed or variable, at which the broker-dealer solicits purchasers;debt securities of the series shall bear interest, if any, or the method of calculating and/or resetting such rate or rates of interest;
   
 block trades inthe dates from which such interest shall accrue or the broker-dealer will attempt to sellmethod by which such dates shall be determined and the shares as agent, but may position and resell a portionduration of the block as principal to facilitateextensions and the transaction;basis upon which interest shall be calculated;
   
 purchasesthe interest payment dates for the series of debt securities or the method by a broker-dealer as principalwhich such dates will be determined, the terms of any deferral of interest and resale byany right of ours to extend the broker-dealer for its account;interest payments periods;
   
 an exchange distribution in accordance with the rulesplace or places where the principal and interest on the series of the applicable exchange;debt securities will be payable;
   
 privately negotiated transactions;
short-sales;
through the distributionterms and conditions upon which debt securities of the common stock by any selling stockholder to its partners, membersseries may be redeemed, in whole or stockholders;
through one or more underwritten offerings on a firm commitment or best efforts basis;
in sales pursuant to Rule 144;
through the writing or settlement of options or other hedging transactions, whether through an options exchangepart, at our option or otherwise;
   
 broker-dealers may agree withour obligation, if any, to redeem, purchase, or repay debt securities of the selling stockholdersseries pursuant to sell aany sinking fund or other specified numberevent or at the option of the holders and the terms of any such shares at a stipulated price per share;redemption, purchase, or repayment;
   
 the terms, if any, upon which the debt securities of the series may be convertible into or exchanged for other securities, including, among other things, the initial conversion or exchange price or rate and the conversion or exchange period;
if the amount of principal, premium, if any, or interest with respect to the debt securities of the series may be determined with reference to an index or formula, the manner in which such amounts will be determined;
if any payments on the debt securities of the series are to be made in a combinationcurrency or currencies (or by reference to an index or formula) other than that in which such securities are denominated or designated to be payable, the currency or currencies (or index or formula) in which such payments are to be made and the terms and conditions of such payments;
any changes or additions to the provisions of the indenture dealing with defeasance, including any additional covenants that may be subject to our covenant defeasance option;
the currency or currencies in which payment of the principal and premium, if any, and interest with respect to debt securities of the series will be payable, or in which the debt securities of the series shall be denominated, and the particular provisions applicable thereto in accordance with the indenture;

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the portion of the principal amount of debt securities of the series which will be payable upon declaration of acceleration or provable in bankruptcy or the method by which such portion or amount shall be determined;
whether the debt securities of the series will be secured or guaranteed and, if so, on what terms;
any addition to or change in the events of default with respect to the debt securities of the series;
the identity of any trustees, authenticating or paying agents, transfer agents or registrars;
the applicability of, and any addition to or change in, the covenants currently set forth in the indenture;
the subordination, ranking or priority, if any, of the debt securities of the series and terms of the subordination;
any other terms of the debt securities of the series which are not prohibited by the indenture; and
whether securities of the series shall be issuable as registered securities or bearer securities (with or without interest coupons), and any restrictions applicable to the offering, sale or delivery of such methodsbearer securities and the terms upon which such bearer securities of sale;a series may be exchanged for registered securities, and vice versa.

Holders of debt securities may present debt securities for exchange in the manner, at the places, and subject to the restrictions set forth in the debt securities, the indenture, and the applicable prospectus supplement. We will provide these services without charge, other than any tax or other governmental charge payable in connection therewith, but subject to the limitations provided in the indenture, any board resolution establishing such debt securities and any applicable indenture supplement. Debt securities in bearer form and the coupons, if any, appertaining thereto will be transferable by delivery.

Senior Debt

We may issue senior debt securities under the indenture and any coupons that will constitute part of our senior debt. Unless otherwise set forth in the applicable indenture supplement and described in the applicable prospectus supplement, the senior debt securities will be senior unsecured obligations, ranking equally with all of our existing and future senior unsecured debt. The senior debt securities will be senior to all of our subordinated debt and junior to any secured debt we may incur as to the assets securing such debt.

Subordinated Debt

We may issue subordinated debt securities under the indenture and any coupons that will constitute part of such subordinated debt. These subordinated debt securities will be subordinate and junior in right of payment, to the extent and in the manner set forth in the indenture and any applicable indenture supplement, to all of our senior indebtedness.

If this prospectus is being delivered in connection with a series of subordinated debt securities, the accompanying prospectus supplement or the information incorporated by reference will set forth the approximate amount of senior indebtedness outstanding as of the end of the most recent fiscal quarter.

Senior Subordinated Debt

We may issue senior subordinated debt securities under the indenture and any coupons that will constitute part of our senior subordinated debt. These senior subordinated debt securities will be, to the extent and in the manner set forth in the applicable indenture supplement, subordinate and junior in right of payment to all of our “senior indebtedness” and senior to our other subordinated debt. See the discussions above under “—Senior Debt” and “—Subordinated Debt” for a more detailed explanation of our senior and subordinated indebtedness.

Interest Rate

Debt securities that bear interest will do so at a fixed rate or a floating rate. We may sell, at a discount below the stated principal amount, any debt securities which bear no interest or which bear interest at a rate that at the time of issuance is below the prevailing market rate. The relevant prospectus supplement will describe the special United States federal income tax considerations applicable to:

any discounted debt securities and
   
 any other method permitted debt securities issued at par which are treated as having been issued at a discount for United States federal income tax purposes.

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Registered Global Securities

We may issue registered debt securities of a series in the form of one or more fully registered global securities. We will deposit the registered global security with a depository or with a nominee for a depository identified in the prospectus supplement relating to such series. The global security or global securities will represent and will be in a denomination or aggregate denominations equal to the portion of the aggregate principal amount of outstanding registered debt securities of the series to be represented by the registered global security or securities. Unless it is exchanged in whole or in part for debt securities in definitive registered form, a registered global security may not be transferred, except as a whole in three cases:

by applicable law.the depository for the registered global security to a nominee of the depository;
by a nominee of the depository to the depository or another nominee of the depository; and
by the depository or any nominee to a successor of the depository or a nominee of the successor.

 

The selling stockholdersprospectus supplement relating to a series of debt securities will describe the specific terms of the depository arrangement concerning any portion of that series of debt securities to be represented by a registered global security. We anticipate that the following provisions will generally apply to all depository arrangements.

Upon the issuance of a registered global security, the depository will credit, on its book-entry registration and transfer system, the principal amounts of the debt securities represented by the registered global security to the accounts of persons that have accounts with the depository. These persons are referred to as “participants.” Any underwriters, agents or debtors participating in the distribution of debt securities represented by the registered global security will designate the accounts to be credited. Only participants or persons that hold interests through participants will be able to beneficially own interests in a registered global security. The depository for a global security will maintain records of beneficial ownership interests in a registered global security for participants. Participants or persons that hold through participants will maintain records of beneficial ownership interests in a global security for persons other than participants. These records will be the only means to transfer beneficial ownership in a registered global security.

The laws of some states may require that specified purchasers of securities take physical delivery of the securities in definitive form. These laws may limit the ability of those persons to own, transfer or pledge beneficial interests in global securities.

So long as the depository, or its nominee, is the registered owner of a registered global security, the depository or its nominee will be considered the sole owner or holder of the debt securities represented by the registered global security for all purposes under the indenture. Except as set forth below, owners of beneficial interests in a registered global security:

may not have the debt securities represented by a registered global security registered in their names;
will not receive or be entitled to receive physical delivery of debt securities represented by a registered global security in definitive form; and
will not be considered the owners or holders of debt securities represented by a registered global security under the indenture.

Accordingly, each person owning a beneficial interest in a registered global security must rely on the procedures of the depository for the registered global security and, if the person is not a participant, on the procedures of the participant through which the person owns its interests, to exercise any rights of a holder under the indenture applicable to the registered global security.

We understand that, under existing industry practices, if we request any action of holders, or if an owner of a beneficial interest in a registered global security desires to give or take any action which a holder is entitled to give or take under the indenture, the depository for the registered global security would authorize the participants holding the relevant beneficial interests to give or take the action, and the participants would authorize beneficial owners owning through the participants to give or take the action or would otherwise act upon the instructions of beneficial owners holding through them.

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Payment of Interest on and Principal of Registered Global Securities

We will make principal, premium, if any, and interest payments on debt securities represented by a registered global security registered in the name of a depository or its nominee to the depository or its nominee as the registered owner of the registered global security. None of Stereotaxis, the trustee, or any paying agent for debt securities represented by a registered global security will have any responsibility or liability for:

any aspect of the records relating to, or payments made on account of, beneficial ownership interests in such registered global security;
maintaining, supervising, or reviewing any records relating to beneficial ownership interests;
the payments to beneficial owners of the global security of amounts paid to the depository or its nominee; or
any other matter relating to the actions and practices of the depository, its nominee or any of its participants.

We expect that the depository, upon receipt of any payment of principal, premium or interest in respect of the global security, will immediately credit participants’ accounts with payments in amounts proportionate to their beneficial interests in the principal amount of a registered global security as shown on the depository’s records. We also expect that payments by participants to owners of beneficial interests in a registered global security held through participants will be governed by standing instructions and customary practices. This is currently the case with the securities held for the accounts of customers registered in “street name.” Such payments will be the responsibility of participants.

Exchange of Registered Global Securities

We may issue debt securities in definitive form in exchange for the registered global security if both of the following occur:

the depository for any debt securities represented by a registered global security is at any time unwilling or unable to continue as depository or ceases to be a clearing agency registered under the Exchange Act; and
we do not appoint a successor depository within 90 days.

In addition, we may, at any time, determine not to have any of the debt securities of a series represented by one or more registered global securities. In this event, we will issue debt securities of that series in definitive form in exchange for all of the registered global security or securities representing those debt securities.

Covenants by Stereotaxis

The indenture includes covenants by us, including among other things that we will make all payments of principal, or premium, if any, and interest at the times and places required. The supplemental indenture establishing each series of debt securities may contain additional covenants, including covenants which could restrict our right to incur additional indebtedness or liens and to take certain actions with respect to our businesses and assets.

Events of Default

Unless otherwise indicated in the applicable prospectus supplement, the following will be events of default under the indenture with respect to each series of debt securities issued under the indenture:

failure to pay when due any interest on any debt security of that series, continued for 30 days;
failure to pay when due the principal of, or premium, if any, on, any debt security of that series;
default in the payment of any sinking fund installment with respect to any debt security of that series when due and payable;
failure to perform any other covenant or agreement of ours under the indenture or the supplemental indenture with respect to that series or the debt securities of that series, continued for 90 days after written notice to us by the trustee or holders of at least 25% in aggregate principal amount of the outstanding debt securities of the series to which the covenant or agreement relates;
certain events of bankruptcy, insolvency or similar proceedings affecting us; and
any other event of default specified in any supplemental indenture under which such series of debt securities is issued.

Except as to certain events of bankruptcy, insolvency or similar proceedings affecting us and except as provided in the applicable prospectus supplement, if any event of default shall occur and be continuing with respect to any series of debt securities under the indenture, either the trustee or the holders of at least 25% in aggregate principal amount of outstanding debt securities of such series may accelerate the maturity of all debt securities of such series. Upon certain events of bankruptcy, insolvency or similar proceedings affecting us, the principal, premium, if any, and interest on all debt securities of each series shall be immediately due and payable.

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After any such acceleration, but before a judgment or decree based on acceleration has been obtained by the trustee, the holders of a majority in aggregate principal amount of each affected series of debt securities may waive all defaults with respect to such series and rescind and annul such acceleration if all events of default, other than the non-payment of accelerated principal, have been cured, waived or otherwise remedied.

No holder of any debt securities will have any right to institute any proceeding with respect to the indenture or for any remedy under the indenture, unless such holder shall have previously given to the trustee written notice of a continuing event of default and the holders of at least 25% in aggregate principal amount of the outstanding debt securities of the relevant series shall have made written request and offered indemnity satisfactory to the trustee to institute such proceeding as trustee, and the trustee shall not have received from the holders of a majority in aggregate principal amount of the outstanding debt securities of such series a direction inconsistent with such request and shall have failed to institute such proceeding within 60 days. However, such limitations do not apply to a suit instituted by a holder of a debt security for enforcement of payment of the principal of and premium, if any, or interest on such debt security on or after the respective due dates expressed in such debt security.

Supplemental Indentures

We and the trustee may, at any time and from time to time, pledgewithout prior notice to or grantconsent of any holders of debt securities, enter into one or more indentures supplemental to the indenture, among other things:

to add guarantees to or secure any series of debt securities;
to provide for the succession of another person pursuant to the provisions of the indenture relating to consolidations, mergers and sales of assets and the assumption by such successor of our covenants, agreements, and obligations, or to otherwise comply with the provisions of the indenture relating to consolidations, mergers, and sales of assets;
to surrender any right or power conferred upon us under the indenture or to add to our covenants further covenants, restrictions, conditions or provisions for the protection of the holders of all or any series of debt securities;
to cure any ambiguity or to correct or supplement any provision contained in the indenture, in any supplemental indenture that may be defective or inconsistent with any other provision contained therein;
to modify or amend the indenture in such a manner as to permit the qualification of the indenture or any supplemental indenture under the Trust Indenture Act;
to add to or change any of the provisions of the indenture to supplement any of the provisions of the indenture in order to permit the defeasance and discharge of any series of debt securities pursuant to the indenture, so long as any such action does not adversely affect the interests of the holders of debt securities of any series in any material respect;
to add to, change, or eliminate any of the provisions of the indenture with respect to one or more series of debt securities, so long as any such addition, change or elimination shall not apply to any debt securities of any series created prior to the execution of such supplemental indenture and entitled to the benefit of such provision;
to evidence and provide for the acceptance of appointment by a successor or separate trustee; and
to establish the form or terms of debt securities of any series and to make any change that does not adversely affect the interests of the holders of debt securities.

With the consent of the holders of at least a majority in principal amount of debt securities of each series affected by such supplemental indenture (each series voting as one class), we and the trustee may enter into one or more supplemental indentures for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of the indenture or modifying in any manner the rights of the holders of debt securities of each such series.

Notwithstanding our rights and the rights of the trustee to enter into one or more supplemental indentures with the consent of the holders of debt securities of the affected series as described above, no such supplemental indenture shall, without the consent of the holder of each outstanding debt security of the affected series, among other things:

change the final maturity of the principal of, or any installment of interest on, any debt securities;
reduce the principal amount of any debt securities or the rate of interest on any debt securities;
change the currency in which any debt securities are payable;
impair the right of the holders to conduct a proceeding for any remedy available to the trustee;
reduce the percentage in principal amount of any series of debt securities whose holders must consent to an amendment or supplemental indenture;
reduce any premium payable upon the redemption of any debt securities; or
make any change that adversely affects the relative rights of holders of subordinated debt securities with respect to senior debt securities.

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Satisfaction and Discharge of the Indenture; Defeasance

Except to the extent set forth in somea supplemental indenture with respect to any series of debt securities, we, at our election, may satisfy and discharge the indenture and the indenture shall generally cease to be of any further effect with respect to that series of debt securities if (i) either (a) we have delivered to the trustee for cancellation all debt securities of that series (with certain limited exceptions), or (b) all debt securities of that series not previously delivered to the trustee for cancellation shall have become due and payable, or are by their terms to become due and payable within one year or are to be called for redemption within one year, and we have deposited with the trustee the entire amount sufficient to pay at maturity or upon redemption all such debt securities; (ii) we have paid or caused to be paid all other sums payable under the indenture by us; and (iii) we have delivered to the trustee an officer’s certificate and an opinion of counsel, each stating that all conditions precedent under the indenture relating to the satisfaction and discharge of the indenture relating to the satisfaction and discharge have been complied with.

In addition, we have a “legal defeasance option” (pursuant to which we may terminate, with respect to the debt securities of a particular series, all of our obligations under such debt securities and the indenture with respect to such debt securities) and a “covenant defeasance option” (pursuant to which we may terminate, with respect to the debt securities of a particular series, our obligations with respect to such debt securities under certain specified covenants contained in the indenture). If we exercise our legal defeasance option with respect to a series of debt securities, payment of such debt securities may not be accelerated because of an event of default. If we exercise our covenant defeasance option with respect to a series of debt securities, payment of such debt securities may not be accelerated because of an event of default related to the specified covenants.

We may exercise our legal defeasance option or our covenant defeasance option with respect to the debt securities of a series only if we irrevocably deposit in trust with the trustee cash or U.S. government obligations (as defined in the indenture) for the payment of principal, premium, if any, and interest with respect to such debt securities to maturity or redemption, as the case may be. In addition, to exercise either of our defeasance options, we must comply with certain other conditions, including the delivery to the trustee of an opinion of counsel to the effect that the holders of debt securities of such series will not recognize income, gain or loss for Federal income tax purposes as a result of such defeasance and will be subject to Federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such defeasance had not occurred (and, in the case of legal defeasance only, such opinion of counsel must be based on a ruling from the Internal Revenue Service or other change in applicable Federal income tax law).

The trustee will hold in trust the cash or U.S. government obligations deposited with it as described above and will apply the deposited cash and the proceeds from deposited U.S. government obligations to the payment of principal, premium, if any, and interest with respect to the debt securities of the defeased series.

Mergers, Consolidations and Certain Sales of Assets

We may not consolidate with or merge into any other person or entity or permit any other person or entity to consolidate with or merge into us in a transaction in which we are not the surviving entity, or transfer, lease or dispose of all or substantially all of our assets to any other person or entity unless:

the resulting, surviving or transferee entity shall be a corporation organized and existing under the laws of the United States or any state thereof and such resulting, surviving or transferee entity shall expressly assume, by supplemental indenture, executed and delivered in form satisfactory to the trustee, all of our obligations under the debt securities and the indenture;
immediately after giving effect to such transaction (and treating any indebtedness which becomes an obligation of the resulting, surviving or transferee entity as a result of such transaction as having been incurred by such entity at the time of such transaction), no default or event of default would occur or be continuing; and
we shall have delivered to the trustee an officer’s certificate and an opinion of counsel, each stating that such consolidation, merger or transfer and such supplemental indenture (if any) comply with the indenture (except that such opinion of counsel need not opine as to the matters set forth in the second bullet-point above).

Governing Law

The indenture and the debt securities will be governed by the laws of the State of New York.

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No Personal Liability of Directors, Officers, Employees and Stockholders

No director, officer, incorporator or stockholder of Stereotaxis, as such, shall have any liability for any obligations of Stereotaxis under the debt securities or the indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation, solely by reason of his, her, or its status as director, officer, incorporator or stockholder of Stereotaxis. By accepting a debt security, each holder waives and releases all such liability, but only such liability. The waiver and release are part of the consideration for issuance of the debt securities. Nevertheless, such waiver may not be effective to waive liabilities under the federal securities laws and it has been the view of the SEC that such a waiver is against public policy.

Conversion or Exchange Rights

Any debt securities offered hereby may be convertible into or exchangeable for shares of common stock owned by themour equity or other securities. The terms and if they defaultconditions of such conversion or exchange will be set forth in the performanceapplicable prospectus supplement. Such terms may include, among others, the following:

the conversion or exchange price;
the conversion or exchange period;
provisions regarding our ability or that of the holder to convert or exchange the debt securities;
events requiring adjustment to the conversion or exchange price; and
provisions affecting conversion or exchange in the event of our redemption of such debt securities.

Concerning the Trustee

The indenture provides that there may be more than one trustee with respect to one or more series of their secured obligations,debt securities. If there are different trustees for different series of debt securities, each trustee will be a trustee of a trust under a supplemental indenture separate and apart from the pledgees or secured parties may offer and sell the shares of common stock, from time to time,trust administered by any other trustee under such indenture. Except as otherwise indicated in this prospectus or any prospectus supplement, any action permitted to be taken by a trustee may be taken by the trustee only with respect to the one or more series of debt securities for which it is the trustee under an amendmentindenture. Any trustee under the indenture or a supplemental indenture may resign or be removed with respect to this prospectus under Rule 424(b)(3)one or other applicable provisionmore series of debt securities.

The indenture contains limitations on the right of the Securitiestrustee, should it become a creditor of Stereotaxis, to obtain payment of claims in certain cases or to realize on certain property received in respect of any such claim as security or otherwise. If the trustee acquires an interest that conflicts with, within the meaning of the Trust Indenture Act, amendingany duties with respect to the listdebt securities, the trustee is required to either resign or eliminate such conflicting interest to the extent and in the manner provided by the indenture.

Limitations on Issuance of selling stockholdersBearer Debt Securities

Debt securities in bearer form are subject to includespecial U.S. tax requirements and may not be offered, sold, or delivered within the pledgee, transfereeUnited States or other successorsits possessions or to a U.S. person, except in interest as selling stockholders under this prospectus. The selling stockholders also may transfer or donatecertain transactions permitted by U.S. tax regulations. Investors should consult the shares of common stockrelevant prospectus supplement, in other circumstances, in which case the transferees, donees, pledgees or other successors in interestevent that bearer debt securities are issued for special procedures and restrictions that will be the selling beneficial owners for purposes of this prospectus.apply to such an offering.

 

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In connection with the sale of securities or otherwise, the selling stockholders may enter into hedging transactions with broker-dealers or other financial institutions, which may in turn engage in short sales of the shares in the course of hedging the positions they assume. The selling stockholders may also sell shares short and deliver these shares to close out their short positions and to return borrowed shares in connection with such short sales, or loan or pledge the shares to broker-dealers that in turn may sell these shares. The selling stockholders may also enter into option or other transactions with broker-dealers or other financial institutions or the creation of one or more derivative securities which require the delivery to such broker-dealer or other financial institution of shares offered by this prospectus, which shares such broker-dealer or other financial institution may resell pursuant to this prospectus (as supplemented or amended to reflect such transaction).

The selling stockholders also may resell all or a portion of the shares in open market transactions in reliance upon Rule 144 under the Securities Act, provided that they meet the criteria and conform to the requirements of that rule.

The selling stockholders, individually and not severally, and any underwriters, broker-dealers or agents that participate in the distribution of the common stock may be deemed to be “underwriters” within the meaning of Section 2(a)(11) of the Securities Act. Any discounts, commissions, concessions or profit earned by any such broker-dealer on any resale of the shares may be deemed to be underwriting discounts and commissions under the Securities Act. Selling stockholders who are “underwriters” within the meaning of Section 2(a)(11) of the Securities Act will be subject to the prospectus delivery requirements of the Securities Act, including Rule 172 thereunder and may be subject to certain statutory liabilities of, including but not limited to, Sections 11, 12 and 17 of the Securities Act and Rule 10b-5 under the Exchange Act. To the extent applicable, we will make copies of this prospectus (as it may be supplemented or amended from time to time) available to the selling stockholders for the purpose of satisfying the prospectus delivery requirements of the Securities Act. The selling stockholders may indemnify any broker-dealer that participates in transactions involving the sale of the shares against certain liabilities, including liabilities arising under the Securities Act.

To the extent required, the shares of our common stock to be sold, the names of the selling stockholders, the respective purchase prices and public offering prices, the names of any agents, dealer or underwriter, and any applicable commissions or discounts with respect to a particular offer will be set forth in an accompanying prospectus supplement or, if appropriate, a post-effective amendment to the registration statement of which this prospectus forms a part.

In order to comply with the securities laws of some states, if applicable, the common stock may be sold in these jurisdictions only through registered or licensed brokers or dealers. In addition, in some states the common stock may not be sold unless it has been registered or qualified for sale or an exemption from registration or qualification requirements is available and is complied with.

Each selling stockholder and any other person participating in such distribution will be subject to applicable provisions of the Exchange Act and the rules and regulations thereunder, including, without limitation, to the extent applicable, Regulation M of the Exchange Act, which may limit the timing of purchases and sales of any of the shares of common stock by the selling stockholder and any other participating person. To the extent applicable, Regulation M may also restrict the ability of any person engaged in the distribution of the shares of common stock to engage in market-making activities with respect to the shares of common stock. All of the foregoing may affect the marketability of the shares of common stock and the ability of any person or entity to engage in market-making activities with respect to the shares of common stock.

Broker-dealers engaged by the selling stockholders may arrange for other broker-dealers to participate in sales. If the selling stockholders effect such transactions by selling shares of common stock to or through underwriters, broker-dealers or agents, such underwriters, broker-dealers or agents may receive commissions in the form of discounts, concessions or commissions from the selling stockholders or commissions from purchasers of the shares of common stock for whom they may act as agent or to whom they may sell as principal. Such commissions will be in amounts to be negotiated, and the selling stockholders have advised us that, except as set forth in a supplement to this prospectus, in the case of an agency transaction, such commissions will not be in excess of a customary brokerage commission in compliance with FINRA Rule 2121 and, in the case of a principal transaction, any such markup or markdown will be in compliance with FINRA Rule 2121.

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The aggregate proceeds to the selling stockholders from the sale of the common stock offered by them will be the purchase price of the common stock less discounts or commissions, if any. Each of the selling stockholders reserves the right to accept and, together with their agents from time to time, to reject, in whole or in part, any proposed purchase of common stock to be made directly or through agents. There can be no assurance that any selling stockholder will sell any or all of the shares of common stock registered pursuant to the registration statement of which this prospectus forms a part.

We have agreed to indemnify the selling stockholders against liabilities, including liabilities under the Securities Act and state securities laws, relating to the registration of the shares offered by this prospectus.

We have agreed with the selling stockholders to keep the registration statement of which this prospectus forms a part effective until the earlier of (1) such time as all of the shares covered by this prospectus have been disposed of pursuant to and in accordance with the registration statement or Rule 144 under the Securities Act or (2) the date on which all of the shares may be sold without restriction or condition pursuant to Rule 144 of the Securities Act.

Once sold under the registration statement of which this prospectus forms a part, the shares of common stock will be freely tradable in the hands of persons other than our affiliates.

 

DESCRIPTION OF SECURITIES

GeneralCAPITAL STOCK

 

As of the date of this prospectus, we are authorized to issue up to 300,000,000310,000,000 shares of commoncapital stock, par value $0.001$.001 per share, divided into two classes designated, respectively, “common stock” and “preferred stock.” Of such shares authorized, 300,000,000 shares are designated as common stock, and 10,000,000 shares ofare designated as preferred stock, par value $0.001 per share.stock.

 

The following is a summary of the material terms of our capital stock and certain provisions of our amended and restated certificate of incorporation, as amended (our “amended and restated certificate of incorporation”) and amended and restated bylaws. It also summarizes some relevant provisions of the Delaware General Corporation Law, which we sometimes refer to as Delaware law. Since the terms of our amended and restated certificate of incorporation and amended and restated bylaws, and Delaware law, are more detailed than the general information provided below, you should only rely on the actual provisions of those documents and Delaware law. If you would like to read those documents,our amended and restated certificate of incorporation or amended and restated bylaws, they are on file with the SEC, as described under the heading “Where You Can Find Additional Information” below.

 

Common Stock

 

As of August 23, 2019,April 30, 2023, there were approximately 66 million80,678,375 shares of common stock outstanding that were held of record by approximately 492 stockholders, although we believe that there is a significantly larger number of beneficial owners of our common stock. In addition, as of such date, we had 2,062,514 shares of common stock issuable upon the exercise of outstanding options and stock appreciation rights at a weighted average exercise price of $2.10 per share, 1,023,074 shares of common stock issuable upon the exercise of outstanding warrants at a weighted average exercise price of $0.70 per share, 43,082,782 shares of common stock issuable upon the conversion of Series A Convertible Preferred Stock, 5,610,121 shares of common stock issuable upon the conversion of Series B Convertible Preferred Stock, and 857,687 shares of unvested restricted share units.412 stockholders.

 

The holdersVoting Rights. Holders of our common stock are entitled to one vote for eachper share held of record on all matters submitted to abe voted upon by shareholders. In addition, holders of our Series A Convertible Preferred Stock (as described below) are entitled to vote such shares on an as-converted basis with the common stock, subject to specified beneficial ownership issuance limitations. In accordance with Delaware law, the affirmative vote of a majority of the stockholders.shares cast at a duly held meeting at which a quorum is present shall be the act of the shareholders. The presence at the meeting, by person or by proxy, of the holders of record of a majority of shares issued and outstanding and entitled to vote will constitute a quorum for transacting business. Our stockholders do not have cumulative voting rights in the election of directors. Accordingly, holders of a majority of the shares votingeligible to vote, which as of the date of this prospectus are holders of our common stock and our Series A Convertible Preferred Stock, are able to elect all of the directors. Subjectdirectors, subject to preferencesany rights to elect directors that may be granted to any then outstandingthen-outstanding preferred stock.

Liquidation Rights. If we are liquidated, our creditors and any holders of our preferred stock with preferential liquidation rights will be paid before any distribution to holders of common stock. Shares of our Series A Convertible Preferred Stock rank senior to shares of our common stock as to distributions and payments upon the liquidation, dissolution and winding up of the Company. No such distributions or payments upon the liquidation, dissolution or winding up of the Company may be made to holders of common stock unless and until the holders of the Series A Convertible Preferred Stock have received the stated value of $1,000 per share plus any accrued and unpaid dividends. As noted below, our Series A Convertible Preferred Stock bears dividends at a rate of six percent (6.0%) per annum, which are cumulative and accrue daily from their date of issuance, September 29, 2016, on the $1,000 stated value. However, such dividends will not be paid in cash, except in connection with any liquidation, dissolution or winding up of the Company or any redemption of the Series A Convertible Preferred Stock. Instead, the value of the accrued dividends is added to the liquidation preference of the Series A Convertible Preferred Stock and will increase the number of shares of common stock issuable upon conversion, which will dilute the ownership of our common stockholders. Subject to the prior and superior rights of the holders of the Series A Convertible Preferred Stock and any other securities of the Company that rank senior to our common stock, upon liquidation, dissolution or winding up of the Company, shares of common stock will be entitled to receive distributions of any of the assets or surplus funds of the Company on a pari passu basis.

In addition, the liquidation rights, preferences and privileges of holders of common stock are subject to, and may be adversely affected by, the rights of the holders of shares of any series of preferred stock which we may designate and issue in the future.

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Dividend Rights. The holders of our common stock are entitled to receive ratably only those dividends when and as may be declared by theour board of directors out of funds legally available therefor, as well as any distributionsfor dividends, subject to the stockholders.prior rights or preferences applicable to any preferred stock as may then be outstanding.

Until all shares of our Series A Convertible Preferred Stock have been converted or redeemed, no dividends may be paid on the common stock without the express written consent of the holders of a majority of the outstanding shares of Series A Convertible Preferred Stock. In the event that dividends or other distributions of our liquidation, dissolutionassets are made or winding up,paid by the Company to the holders of the common stock, the holders of shares of the Series A Convertible Preferred Stock are entitled to share ratablyparticipate in allsuch dividend or distribution on an as-converted basis.

The Company has not declared or paid any cash dividends on its common stock and the Company does not presently intend to pay any cash dividends in the foreseeable future.

Other Rights and Preferences. Shares of our assets remaining after we pay our liabilities and distribute the liquidation preference of any then outstanding preferred stock. Holders of common stock have no preemptive or other subscription orrights, no conversion rights. There arerights, no redemption or sinking fund provisions, applicable to the common stock.

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and are not liable for further call or assessment.

 

Preferred Stock

 

Our board of directors is authorized to issue up to 10,000,000 shares of preferred stock in one or more series, to fix the number of shares in each series, and to determine the designations and preferences, limitations and relative rights of each series, including dividend rates, terms of redemption, liquidation preferences, sinking fund requirements, conversion rights, voting rights, and whether the preferred stock can be issued as a share dividend with respect to another class or series of shares, all without any vote or other action on the part of stockholders. This power is limited by applicable laws or regulations and may be delegated to a committee of our board of directors. The preferred stock is not secured, is not guaranteed by us or any of our affiliates and is not subject to any other arrangement that legally or economically enhances the ranking of the preferred stock.

 

A prospectus supplement relating to any shares of preferred stock being offered will include specific terms relating to the offering, including a description of any other securities sold together with the preferred stock. These items may include:

the distinctive designation of each series and the number of shares that will constitute the series;
the voting rights, if any, of shares of the series and the terms and conditions of the voting rights;
the dividend rate on the shares of the series (if any), the dates on which dividends are payable, any restriction, limitation or condition upon the payment of dividends, whether dividends will be cumulative, and the dates from and after which dividends shall accumulate;
the prices at which, and the terms and conditions on which, the shares of the series may be redeemed, if the shares are redeemable;
the terms and conditions of a sinking or purchase fund for the purchase or redemption of shares of the series, if such a fund is provided;
the preferential amount, if any, payable upon the shares of the series in the event of the liquidation, dissolution or winding up of, or upon the distribution of any of our assets;
the prices or rates of conversion or exchange at which, and the terms and conditions on which, the shares of the series may be converted or exchanged into other securities, if the shares are convertible or exchangeable;
any terms relating to the amendment of the certificate of designation related thereto;
information with respect to book-entry procedures, if any;
where the shares of such series will be listed for trading on any national securities exchange.
a discussion of any material federal income tax considerations; and
any other material terms of the shares, including terms, procedures, and limitations relating to the transferability (including use of a transfer agent) and exchange thereof.

As described below, as of the date of this prospectus, we had authorized the issuance of up to 5,634,12124,000 shares in the aggregate of Series A Convertible Preferred Stock, and Series B Convertible Preferred Stock, leaving an aggregate of 4,365,8799,976,000 shares of preferred stock authorized but undesignated. In the caseAs of the date of this prospectus, all 5,610,121 shares previously designated as shares of our Series B Convertible Preferred Stock any shareswere converted to common stock, shall resumeat which time they were no longer designated as Series B Convertible Preferred Stock and resumed the status of authorized but unissued shares of preferred stock and shall no longer be designated as Series B Preferred Stock.stock.

 

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Series A Convertible Preferred Stock

On September 29,,2016, we filed a Certificate of Designations, Preferences and Rights of Series A Convertible Preferred Stock (the “Series A Certificate of Designations”) to authorize the issuance of up to 24,000 shares of the Series A Convertible Preferred Stock, of which 23,85522,383 shares remain issued and outstanding as of the date of this prospectus supplement.prospectus.

 

Pursuant to the Series A Certificate of Designations, holders of Series A Convertible Preferred Stock are entitled to vote on an as-converted basis with holders of common stock, subject to specified beneficial ownership issuance limitations. The Series A Convertible Preferred Stock bears dividends at a rate of six percent (6.0%) per annum, which are cumulative and accrue daily from the date of issuance on the $1,000 stated value. Such dividends will not be paid in cash, except in connection with any liquidation, dissolution or winding up of the Company or any redemption of the Series A Convertible Preferred Stock. Instead, the value of the accrued dividends is added to the liquidation preference of the Series A Convertible Preferred Stock and will increase the number of shares of common stock issuable upon conversion.

 

Each share of Series A Convertible Preferred Stock is convertible at the option of the holder from and after the original date of issuance, at an initial conversion price of $0.65 per share, subject to adjustment in the event of stock splits, dividends, mergers, sales of all or substantially all of our assets or similar transactions, subject to specified beneficial ownership issuance limitations. If we fail to timely issue shares of Series A Convertible Preferred Stock or common stock issuable on conversion or remove legends from any such shares, in each case as and when required to do so under the Series A Certificate of Designations, we will be required to pay liquidated damages to the affected holder in an amount equal to 0.25% of the product of (i) the number of shares of common stock to be issued or issuable on conversion of the relevant shares of Series A Convertible Preferred Stock and (ii) the weighted average price of the common stock on the last date before such failure, and may be required to pay additional or alternative damages in specified circumstances at the option of the holder. Each holder of Series A Convertible Preferred Stock has the right to require us to redeem such holder’s Series A Convertible Preferred Stock upon the occurrence of specified events, including mergers, sales of substantially all assets of the Company, and certain defaults under the Series A Certificate of Designations and under the Registration Rights Agreement entered into in connection with that certain Securities Purchase Agreement, dated September 26, 2016, by and among the Company and the investors identified on the Schedule of Buyers thereto (the “2016 SPA”). We also have the right to redeem the Series A Convertible Preferred Stock in the event of a Change of Control Transaction (as defined in the Series A Certificate of Designations).

 

The Series A Convertible Preferred Stock ranks senior to our common stock as to distributions and payments upon the liquidation, dissolution and winding up of the Company. No such distributions or payments upon the liquidation, dissolution and winding up of the Company may be made to the holders of common stock unless and until the holders of Series A Convertible Preferred Stock have received the stated value of $1,000 per share plus any accrued and unpaid dividends. Until all shares of Series A Convertible Preferred Stock have been converted or redeemed, no dividends may be paid on the common stock without the prior express written consent of the holders of a majority of the outstanding Series A Convertible Preferred Stock. In the event that dividends or other distributions of assets are made or paid by us to the holders of the common stock, the holders of Series A Convertible Preferred Stock are entitled to participate in such dividend or distribution on an as-converted basis (without giving effect to any limitations on conversion).

 

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Under the 2016 SPA, we have agreed that for a period of 61 months following the closing date, so long as at least 8,000 shares of Series A Convertible Preferred Stock issued on the closing date are outstanding, the Buyers will have a right to participate on a pro rata basis in equity financings or issuances of securities convertible, exercisable or exchangeable into equity securities of the Company or any subsidiaries (including debt securities with an equity component), subject to certain exceptions.

Series B Convertible Preferred Stock

On August 7, 2019, we filed a Certificate of Designation of Preferences, Rights and Limitations of Series B Convertible Preferred Stock (the “Series B Certificate of Designations”) to authorize the issuance of up to 5,610,121 shares of the Series B Convertible Preferred Stock, all of which are issued and outstanding as of the date of this prospectus supplement.

Pursuant to the Series B Certificate of Designations, holders of Series B Convertible Preferred Stock have no voting rights except as required by law. The Series B Convertible Preferred Stock bears dividends equal to and in the same form as dividends actually paid on shares of common stock when, as and if such dividends are paid on shares of common stock. No other dividends will be paid on shares of Series B Convertible Preferred Stock.

Each share of Series B Convertible Preferred Stock is convertible at the option of the holder from and after the original date of issuance, into a number of shares of common stock equal to the Conversion Ratio. The “Conversion Ratio” for each share of Series B Convertible Preferred Stock is equal to the stated value of $2.05 divided by the conversion price of $2.05, subject to adjustment in the event of stock splits, stock dividends, mergers, sales of all or substantially all of our assets or similar transactions, subject to specified beneficial ownership issuance limitations. If we fail to timely issue shares of Series B Convertible Preferred Stock or common stock issuable on conversion, in each case as and when required to do so under the Series B Certificate of Designations unless the affected holder has rescinded the applicable notice of conversion, we will be required to pay liquidated damages at the holder’s option either in cash or in shares of common stock (to the extent that such issuance of shares of common stock would not cause the holder or its affiliates to exceed specified beneficial ownership issuance limitations) to the affected holder in an amount equal to the product of (i) the number of shares of common stock to be issued or issuable on conversion of the relevant shares of Series B Convertible Preferred Stock, (ii) 0.005 multiplied by the last closing trade price of the common stock on the date such shares of common stock were required to be delivered, and (iii) the number of trading days actually lapsed after the fifth trading day after the date such shares of common stock were required to be delivered, and may be required to pay additional or alternative damages in specified circumstances at the option of the holder.

The Series B Convertible Preferred Stock ranks on parity with our common stock as to distributions and payments upon the liquidation, dissolution and winding up of the Company. Subject to the prior and superior rights of the holders of any securities of the Company that rank senior to the Series B Convertible Preferred Stock, upon liquidation, dissolution or winding up of the Company, each holder of shares of Series B Convertible Preferred Stock will be entitled to receive distributions of any of the assets or surplus funds of the Company pari passu with any distribution to the holders of common stock in an amount equal to $0.001 per share of Series B Convertible Preferred Stock.

 

Anti-Takeover Provisions of Delaware Law and Charter Provisions

 

Interested Stockholder TransactionsTransactions.. We are subject to Section 203 of the Delaware General Corporation Law, which prohibits a Delaware corporation from engaging in any “business combination” with any “interested stockholder” for a period of three years after the date that such stockholder became an interested stockholder, with the following exceptions:

 

 before such date, the board of directors of the corporation approved either the business combination or the transaction that resulted in the stockholder becoming an interested stockholder;

15

 upon consummation of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction began, excluding for purposes of determining the number of shares outstanding those shares owned by persons who are directors and also officers and by employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or
 
on or after such date, the business combination is approved by the board of directors and authorized at an annual or special meeting of the stockholders, and not by written consent, by the affirmative vote of at least 66-2/3% of the outstanding voting stock that is not owned by the interested stockholder.

 

Section 203 defines “business combination” to include the following:

 

 any merger or consolidation involving the corporation and the interested stockholder;
 
any sale, transfer, pledge or other disposition involving the interested stockholder of assets with a value of 10% or more of either the total assets or all outstanding stock of the corporation;
 
subject to certain exceptions, any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder;
 any transaction involving the corporation that has the effect of increasing the proportionate share of the stock or any class or series of the corporation beneficially owned by the interested stockholder; or
 
the receipt by the interested stockholder of the benefit of any loans, advances, guarantees, pledges or other financial benefits by or through the corporation.

15

 

In general, Section 203 defines “interested stockholder” as an entity or person beneficially owning 15% or more of the outstanding voting stock of the corporation or any entity or person affiliated with or controlling or controlled by such entity or person.

 

In addition, some provisions of our amended and restated certificate of incorporation and amended and restated bylaws may be deemed to have an anti-takeover effect and may delay or prevent a tender offer or takeover attempt that a stockholder might consider in its best interest, including those attempts that might result in a premium over the market price for the shares held by stockholders.

 

Cumulative VotingVoting.. Our amended and restated certificate of incorporation expressly denies stockholders the right to cumulative voting in the election of directors.

 

Classified Board of DirectorsDirectors.. Our board of directors is divided into three classes of directors serving staggered three-year terms. As a result, approximately one-third of the board of directors iswill be elected each year, which has the effect of requiring at least two annual stockholder meetings, instead of one, to replace a majority of the members of the board. These provisions, when coupled with the provision of our amended and restated certificate of incorporation authorizing only the board of directors to fill vacant directorships or increase the size of the board of directors, may deter a stockholder from removing incumbent directors and simultaneously gaining control of the board of directors by filling the vacancies created by such removal with its own nominees. The amended and restated certificate of incorporation also provides that directors may be removed by stockholders only for cause. Since the board of directors has the power to retain and discharge our officers, these provisions could also make it more difficult for existing stockholders or another party to effect a change in management.

 

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Stockholder Action; Special Meeting of StockholdersStockholders.. Our amended and restated certificate of incorporation and amended and restated bylaws do not permit stockholders to act by written consent. They provide that special meetings of our stockholders may be called only by the chairman of our board of directors, our chief executive officer or a majority of our directors. Further, our amended and restated certificate of incorporation provides that the stockholders may amend bylaws adopted by the board of directors or specified provisions of the amended and restated certificate of incorporation by the affirmative vote of at least 66-2/3% of our capital stock.

 

Advance Notice Requirements for Stockholder Proposals and Directors NominationsNominations.. Our amended and restated bylaws provide that stockholders seeking to bring business before an annual meeting of stockholders, or to nominate candidates for election as directors at an annual meeting of stockholders, must provide timely notice in writing. To be timely, a stockholder’s notice must be delivered to or mailed and received at our principal executive offices not more than 120 days or less than 90 days prior to the anniversary date of the immediately preceding annual meeting of stockholders. However, in the event that the annual meeting is called for a date that is not within 30 days before or after such anniversary date, notice by the stockholder in order to be timely must be received not later than the close of business on the 10th day following the date on which notice of the date of the annual meeting was mailed to stockholders or made public, whichever first occurs. Our amended and restated bylaws also specify requirements as to the form and content of a stockholder’s notice. These provisions may preclude stockholders from bringing matters before an annual meeting of stockholders or from nominating directors at an annual meeting of stockholders.

Authorized But Unissued SharesShares.. Our authorized but unissued shares of common stock and preferred stock are available for future issuance without stockholder approval. These additional shares may be utilized for a variety of corporate purposes, including future public offerings to raise additional capital, corporate acquisitions and employee benefit plans. The existence of authorized but unissued shares of common stock and preferred stock could render more difficult or discourage an attempt to obtain control of Stereotaxis by means of a proxy contest, tender offer, merger or otherwise.

 

Amendments; Supermajority Vote RequirementsRequirements.. The Delaware General Corporation Law provides generally that the affirmative vote of a majority of the shares entitled to vote on any matter is required to amend a corporation’s certificate of incorporation or bylaws, unless either a corporation’s certificate of incorporation or bylaws require a greater percentage. Our amended and restated certificate of incorporation imposes supermajority vote requirements of 66-2/3% of the voting power of our capital stock in connection with the amendment of certain provisions of our amended and restated certificate of incorporation and amended and restated bylaws, including those provisions relating to the classified board of directors, action by written consent and the ability of stockholders to call special meetings.

 

Market InformationListing

 

Our common stock tradesis listed on the NYSE American under the symbol “STXS.”“STXS”. Our Series A Convertible Preferred Stock is not listed or traded on any national securities exchange.

 

Transfer Agent And Registrar

 

The transfer agent and registrar for our common stock is Broadridge Corporate Issuer Solutions, Inc. Its address is P.O. Box 1342, Brentwood,Broadridge Corporate Issuer Solutions, 51 Mercedes Way, Edgewood, NY 11717-0718,11717, and its telephone number is (855) 300-4994.

 

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DESCRIPTION OF WARRANTS

We may issue warrants, including warrants to purchase preferred stock, common stock or other securities or any combination of the foregoing. Warrants may be issued independently or as part of a unit with any other securities and may be attached to or separate from the underlying securities. The warrants will be issued under warrant agreements to be entered into between us and a bank or trust company, as warrant agent, as detailed in the prospectus supplement relating to warrants being offered.

A prospectus supplement relating to any warrants being offered will include specific terms relating to the offering, including a description of any other securities sold together with the warrants. These items will include:

the title of the warrants;
the aggregate number of the warrants;
the price or prices at which the warrants will be issued;
the currencies in which the price or prices of the warrants may be payable;
the designation, amount, and terms of the common stock, preferred stock or other securities or rights, including rights to receive payment in cash or securities based on the value, rate or price of one or more specified commodities, currencies or indices, purchasable upon exercise of the warrants and procedures by which those numbers may be adjusted;
the designation and terms of the other offered securities, if any, with which the warrants are issued and the number of the warrants issued with each security;
if applicable, the date on and after which the warrants and the offered securities purchasable upon exercise of the warrants will be separately transferable;
the price or prices at which the offered securities purchasable upon exercise of the warrants may be purchased;
the date on which the right to exercise the warrants shall commence and the date on which the right shall expire;
the minimum or maximum amount of the warrants that may be exercised at any one time;
any terms relating to the modification of the warrants;
information with respect to book-entry procedures, if any;
a discussion of any material federal income tax considerations; and
any other material terms of the warrants, including terms, procedures, and limitations relating to the transferability, exchange, exercise or redemption of the warrants.

The applicable prospectus supplement will describe the specific terms of any warrant units.

The descriptions of the warrant agreements in this prospectus and in any prospectus supplement are summaries of the applicable provisions of the applicable agreements. These descriptions do not restate those agreements in their entirety and do not contain all of the information that you may find useful. We urge you to read the applicable agreements because they, and not the summaries, define your rights as holders of the warrants or any warrant units. For more information, please review the form of the relevant agreements, which will be filed with the SEC promptly after the offering of the warrants or warrant units and will be available as described in the heading “Where You Can Find Additional Information” below.

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DESCRIPTION OF RIGHTS

We may issue rights to purchase common stock, preferred stock, depositary shares, purchase contracts, or warrants. These rights may be issued independently or together with any other security and may or may not be transferable by the person receiving the rights in such offering. In connection with any offering of such rights, we may enter into a standby arrangement with one or more underwriters or other purchasers pursuant to which the underwriters or other purchasers may be required to purchase any securities remaining unsubscribed for after such offering.

Each series of rights will be issued under a separate rights agreement which we will enter into with a bank or trust company, as rights agent, all as set forth in the applicable prospectus supplement. The rights agent will act solely as our agent in connection with the certificates relating to the rights and will not assume any obligation or relationship of agency or trust with any holders of rights certificates or beneficial owners of rights.

The applicable prospectus supplement will describe the specific terms of any offering of rights for which this prospectus is being delivered, including the following:

the date of determining the shareholders entitled to the rights distribution;
the number of rights issued or to be issued to each shareholder;
the exercise price payable for each share of common stock, preferred stock, depositary shares, purchase contracts, or warrants upon the exercise of the rights;
the number and terms of the shares of common stock, preferred stock, depositary shares, purchase contracts, or warrants which may be purchased per each right;
the extent to which the rights are transferable;
the date on which the holder’s ability to exercise the rights shall commence, and the date on which the rights shall expire;
the extent to which the rights may include an over-subscription privilege with respect to unsubscribed securities;
if applicable, the material terms of any standby underwriting or purchase arrangement entered into by us in connection with the offering of such rights; and
any other terms of the rights, including the terms, procedures, conditions, and limitations relating to the exchange and exercise of the rights.

The descriptions of the rights and any applicable underlying security in this prospectus and in any prospectus supplement are summaries of the material provisions of the applicable agreements. These descriptions do not restate those agreements in their entirety and may not contain all the information that you may find useful. We urge you to read the applicable agreements because they, and not the summaries, define many of your rights as holders of the units. For more information, please review the form of the relevant agreements, which will be filed with the SEC promptly after the offering of units and will be available as described under the heading “Where You Can Find More Information.”

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DESCRIPTION OF UNITS

We may issue units comprised of one or more of the other securities described in this prospectus in any combination. Each unit will be issued so that the holder of the unit is also the holder of each security included in the unit. Thus, the holder of a unit will have the rights and obligations of a holder of each included security. The units may be issued under units agreements to be entered into between us and a bank or trust company, as unit agent, as detailed in the prospectus supplement relating to units being offered. The prospectus supplement will describe:

the designation and terms of the units and of the securities comprising the units, including whether and under what circumstances the securities comprising the units may be held or transferred separately;
a description of the terms of any unit agreement governing the units;
a description of the provisions for the payment, settlement, transfer or exchange of the units;
a discussion of material federal income tax considerations, if applicable; and
whether the units will be issued in fully registered or global form.

The descriptions of the units in this prospectus and in any prospectus supplement are summaries of the material provisions that may be included in the applicable unit agreements. These descriptions do not restate the terms of any such agreements in their entirety and may not contain all the information that you may find useful. We urge you to read the applicable agreements because they, and not the summaries, will define your rights as holders of the units. For more information, please review the form of the relevant agreements, which will be filed with the SEC promptly after the offering of any units and will be available as described under the heading “Where You Can Find Additional Information” below.

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PLAN OF DISTRIBUTION

We may sell any of the securities being offered pursuant to this prospectus in any manner specified in a prospectus supplement or in any of the following manners:

directly to purchasers;
to or through underwriters;
through dealers or agents; or
through a combination of methods.

We may distribute the securities from time to time in one or more transactions at a fixed price or prices, which may be changed, at market prices prevailing at the time of sale, at prices related to the prevailing market prices or at negotiated prices. We may also determine the price or other terms of the securities offered under this prospectus by use of an electronic auction. The securities may be sold through an at-the-market offering, a rights offering, forward contracts or similar arrangements.

The prospectus supplement with respect to the securities being offered will set forth the terms of the offering, including the names of the underwriters, dealers or agents, if any, the purchase price of the securities, the net proceeds to us, any underwriting discounts and other items constituting underwriters’ compensation, any discounts or concessions allowed or reallowed or paid to dealers and any securities exchanges on which the securities may be listed. Also, if applicable, we will describe in the prospectus supplement how any auction will determine the price or any other terms, how potential investors may participate in the auction and the nature of the underwriters’ obligations with respect to the auction.

If underwriters are used in an offering, we will execute an underwriting agreement with the underwriters and will specify the name of each underwriter and the terms of the transaction (including any underwriting discounts and other terms constituting compensation of the underwriters and any dealers) in a prospectus supplement. If an underwriting syndicate is used, the managing underwriter(s) will be specified on the cover of the prospectus supplement. If underwriters are used in the sale, the offered securities will be acquired by the underwriters for their own accounts and may be resold from time to time in one or more transactions, including negotiated transactions, at a fixed public offering price or at varying prices determined at the time of sale. Any public offering price and any discounts or concessions allowed or reallowed or paid to dealers may be changed from time to time. Unless otherwise set forth in the prospectus supplement, the obligations of the underwriters to purchase the offered securities will be subject to conditions precedent, and the underwriters will be obligated to purchase all of the offered securities if any are purchased.

If dealers are used in an offering, we will sell the securities to the dealers as principals. The dealers then may resell the securities to the public at varying prices which they determine at the time of resale. The names of the dealers and the terms of the transaction will be specified in a prospectus supplement.

The securities may be sold directly by us or through agents we designate. If agents are used in an offering, the names of the agents and the terms of the agency will be specified in a prospectus supplement. Unless otherwise indicated in a prospectus supplement, the agents will act on a best-efforts basis for the period of their appointment.

We may engage in at-the-market offerings into an existing trading market in accordance with Rule 415(a)(4) under the Securities Act. In addition, we may enter into derivative transactions with third parties, or sell securities not covered by this prospectus to third parties in privately negotiated transactions. If the applicable prospectus supplement so indicates, in connection with those derivatives, the third parties may sell securities covered by this prospectus and the applicable prospectus supplement, including in short sale transactions. If so, the third party may use securities pledged by us or borrowed from us or others to settle those sales or to close out any related open borrowings of securities, and may use securities received from us in settlement of those derivatives to close out any related open borrowings of securities. The third party in such sale transactions will be an underwriter and, if not identified in this prospectus, will be named in the applicable prospectus supplement (or a post-effective amendment). In addition, we may otherwise loan or pledge securities to a financial institution or other third party that in turn may sell the securities short using this prospectus and an applicable prospectus supplement. Such financial institution or other third party may transfer its economic short position to investors in our securities or in connection with a concurrent offering of other securities.

We may also make direct sales through subscription rights distributed to our existing stockholders on a pro rata basis, which may or may not be transferable. In any distribution of subscription rights to our stockholders, if all of the underlying securities are not subscribed for, we may then sell the unsubscribed securities directly to third parties or may engage the services of one or more underwriters, dealers or agents, including standby underwriters, to sell the unsubscribed securities to third parties.

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Dealers and agents named in a prospectus supplement may be deemed to be underwriters (within the meaning of the Securities Act of 1933) of the securities described therein. In addition, we may sell the securities directly to institutional investors or others who may be deemed to be underwriters within the meaning of the Securities Act of 1933 with respect to any resales thereof.

Underwriters, dealers and agents may be entitled to indemnification by us against specific civil liabilities, including liabilities under the Securities Act of 1933 or to contribution with respect to payments which the underwriters or agents may be required to make in respect thereof, under underwriting or other agreements. The terms of any indemnification provisions will be set forth in a prospectus supplement. Certain underwriters, dealers or agents and their associates may engage in transactions with, and perform services for, us in the ordinary course of business.

Each series of securities is expected to be a new issue of securities with no established trading market, other than the common stock which is listed on the NYSE American. Any common stock sold pursuant to a prospectus supplement will be eligible for listing and trading on the NYSE American, subject to official notice of issuance. Any underwriters to whom securities are sold by us for public offering and sale may make a market in the securities, but the underwriters will not be obligated to do so and may discontinue any market making at any time without notice. The securities, other than the common stock, may or may not be listed on a national securities exchange.

21

LEGAL MATTERS

 

The validity of the securities offered hereby has beenwill be passed upon for us by Bryan Cave Leighton Paisner LLP, St. Louis, Missouri. Additional legal matters may be passed upon for us or any underwriters, dealers or agents, by counsel that we will name in the applicable prospectus supplement.

 

EXPERTS

 

Ernst & Young LLP, independent registered public accounting firm, has audited our financial statements and schedule included in our Annual Report on Form 10-K for the year ended December 31, 2018,2022 as set forth in their report, thereon, which is incorporated by reference ininto this prospectus and elsewhere in the registration statement.prospectus. Our financial statements and schedule as of December 31, 2022 are incorporated by reference in reliance on Ernst & Young LLP’s reports,report, given on their authority as experts in accounting and auditing.

 

17

WHERE YOU CAN FIND ADDITIONAL INFORMATION

 

We file annual, quarterly and current reports, proxy statements and other information with the SEC. Our SEC filings are available to the public over the Internet at the SEC’s website at http://www.sec.gov. The SEC’s website contains reports, proxy and information statements and other information regarding issuers, such as us, that file electronically with the SEC. You may also call the SEC at 1–800–SEC–0330 for information on the operation of its Public Reference Room.

 

We have filed with the SEC a registration statement under the Securities Act of 1933 that registers the distribution of these securities. The registration statement, including the attached exhibits and schedules, contains additional relevant information about us and the securities. This prospectus does not contain all of the information set forth in the registration statement. You can get a copy of the registration statement, at prescribed rates, from the SEC at the address listed above. The registration statement and the documents referred to below under “Incorporation of Certain Documents by Reference” are also available on our Internet website, http://www.stereotaxis.com, under “Investors—All SEC Filings.”Filings”. We have not incorporated by reference into this prospectus the information on our website, and you should not consider it to be a part of this prospectus.

 

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INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE

 

The SEC allows us to “incorporate by reference” information into this prospectus, which means we can disclose important information to you by referring you to other documents that we filed separately with the SEC. You should consider the incorporated information as if we reproduced it in this prospectus.

The following documents listed in (a) through (e) below, which are on file with the SEC, are incorporated hereinprospectus, except for any information directly superseded by reference (except for the portions of the Company’s Current Reports on Form 8-K furnished pursuant to Item 2.02 or Item 7.01 thereof or otherwise notinformation subsequently filed with the SEC which are deemed not to beand incorporated in this prospectus.

We incorporate by reference into the registration statement of which this prospectus forms a part):the following documents (SEC File No. 001-36159), which contain important information about us and our business and financial results:

 

 (a)The Registrant’sour Annual Report on Form 10-K for the fiscal year ended December 31, 2022, filed with the SEC on March 9, 2023;
our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2023, filed with the SEC on May 12, 2023;
our information specifically incorporated by reference into our Annual Report on Form 10-K for the year ended December 31, 2022 from revised definitive Proxy Statement on Form 14A, filed with the SEC on April 6, 2023;

our Current Report on Form 8-K filed with the SEC on May 19, 2023;

the description of our common stock filed as Exhibit 4.2 to our Annual Report on Form 10-K for the fiscal year ended December 31, 2018,2022, filed with the SEC on March 15, 2019;
(b)The Registrant’s Quarterly Reports filed on Form 10-Q for the quarterly period ended March 31, 2019,9, 2023 and any amendment or report filed with the SEC on May 9, 2019, and for the quarterly period ended June 30, 2019, filed with the SEC on August 9, 2019;
(c)The Registrant’s Definitive Proxy Statement on Schedule 14A filed with the SEC on April 10, 2019;
(d)The Registrant’s Current Reports on Form 8-K filed with the SEC on January 11, 2019, May 21, 2019, July 1, 2019, August 8, 2019 and September 16, 2019; and
(e)The description of the Registrant’s common stock contained in the Registrant’s Registration Statement on Form 8-A dated September 4, 2019, registering the Registrant’s common stock under Section 12(b) of the Exchange Act, as amended, including any amendments or reports filed for the purpose of updating such description.the description.

 

In addition, all documents subsequently filedWe incorporate by the Registrantreference any additional filings made by us with the SEC pursuant to Sectionsunder Section 13(a), 13(c), 14 andor 15(d) of the Securities Exchange Act of 1934 (other than the portions of those made pursuant to Item 2.02 or Item 7.01 of Form 8-K or other information “furnished” to the SEC) after the filing of the initial registration statement (including all such documents that we may file with the SEC after the date the registration statement was initially filed and prior to the effectiveness of the registration statement) and before the filing of a post-effective amendment which indicates that all securities offered have been sold or which deregisters all securities then remaining unsold, shall be deemed to be incorporated by reference in the registration statement of which this prospectus formsis a part that indicates that all securities offered hereunder have been sold or that deregisters all securities then remaining unsold (other than information furnished and to be part hereof fromnot filed with the date of filing of such documents.SEC). These documents may include periodic reports, such as Proxy Statements,like Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, (other thanas well as Proxy Statements. Any material that we subsequently file with the portionsSEC will automatically update and replace the information previously filed with the SEC.

For purposes of those documents not deemed to be filed, which is deemed not to be incorporated by reference in the registration statement of which this prospectus formsis a part). Anypart, any statement contained in a document incorporated or deemed to be incorporated herein by reference shall be deemed to be modified or superseded for purposes of the registration statement of which this prospectus forms a part to the extent that a statement contained herein or in any other subsequently filed document which also is or is deemed to be incorporated herein by reference herein modifies or supersedes such statement.

These reports and documents canstatement in such document. Any statement so modified or superseded shall not be accessed freedeemed, except as so modified or superseded, to constitute a part of charge on our website at www.stereotaxis.com. We will provide without charge to each person, including any beneficial owner, to whomthe registration statement of which this prospectus is delivered, upon written or oral request, a copypart.

You may get copies of any or all documents that areof the document incorporated by reference into this prospectus, but not delivered with(excluding exhibits, unless the prospectus, upon written and oral request, other than exhibits to such unless such exhibits are specifically incorporatedincorporated) at no charge to you by reference intowriting or calling the documents that this prospectus incorporates. Please send written requests to:

investor relations department at Stereotaxis, Inc.
4320 Forest Park Avenue,, 710 North Tucker Boulevard, Suite 100
110, St. Louis, Missouri 63108
63101, telephone (314) 678-6100
Attn: Investor Relations Department678-6100.

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PART II

 

18

PART II
INFORMATION NOT REQUIRED IN PROSPECTUS

 

Item 13.14. Other Expenses of Issuances and Distribution.

 

The following table sets forth the costs and expenses, other than underwriting discounts and commissions, payable by Stereotaxis in connection with the issuance and distribution of the securities being registered. All amounts are estimates except the SEC registration fee.

 

SEC registration fee$11,020
Legal fees and expenses*
Accounting fees and expenses*
FINRA filing fee*
Transfer agent and registrar fees*
Miscellaneous expenses*
Total expenses$*

Securities and Exchange Commission filing fee $

5,173

 
Legal fees and expenses  

265,687

 
Accounting fees and expenses  

8,000

 
Financial advisory fees and expenses  

1,625,000

 
Total expenses $

1,903,860

 

*The amount of securities and number of offerings are indeterminable and the expenses cannot be estimated at this time.

 

Item 14.15. Indemnification of Directors and Officers.

 

Our amended and restated certificate of incorporation provides that, to the fullest extent permitted by the Delaware General Corporation Law as the same exists or may hereafter be amended, our directors shall not be liable to the Company or our stockholders for monetary damages for breach of fiduciary duty as a director. In addition, our amended and restated certificate of incorporation provides that we may, to the fullest extent permitted by law, indemnify any person made or threatened to be made a party to an action, suit or proceeding, whether criminal, civil, administrative or investigative, by reason of the fact that such person or his or her testator or intestate is or was a director, officer or employee of the Company, or any predecessor of the Company, or serves or served at any other enterprise as a director, officer or employee at the request of the Company.

 

Our amended and restated bylaws provide that the Company shall indemnify our directors and officers to the fullest extent not prohibited by the Delaware General Corporation Law or any other law. We are not required to indemnify any director or officer in connection with a proceeding brought by such director or officer unless (i) such indemnification is expressly required by law; (ii) the proceeding was authorized by our board of directors; or (iii) such indemnification is provided by the Company, in its sole discretion, pursuant to the powers vested in the Company under the Delaware General Corporation Law or any other applicable law. In addition, our amended and restated bylaws provide that the Company may indemnify its employees and other agents as set forth in the Delaware General Corporation Law or any other applicable law.

 

We have also entered into separate indemnification agreements with our directors and officers that require us, among other things, to indemnify each of them against certain liabilities that may arise by reason of their status or service with the Company or on behalf of the Company, other than liabilities arising from willful misconduct of a culpable nature. The Company is not required to indemnify under the agreement for (i) actions initiated by the director without the authorization of consent of the board of directors; (ii) actions initiated to enforce the indemnification agreement unless the director is successful; (iii) actions resulting from violations of Section 16 of the Exchange Act in which a final judgment has been rendered against the director; and (iv) actions to enforce any non-compete or non-disclosure provisions of any agreement.

 

The indemnification provided for above provides for reimbursement of all losses of the indemnified party, including expenses, judgment, fines and amounts paid in settlement. The right to indemnification set forth above includes the right for us to pay the expenses (including attorneys’ fees) incurred in defending any such proceeding in advance of its final disposition in certain circumstances.

 

II-1

The Delaware General Corporation Law provides that indemnification is permissible only when the director, officer, employee, or agent acted in good faith and in a manner reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe the conduct was unlawful. The Delaware General Corporation Law also precludes indemnification in respect of any claim, issue, or matter as to which an officer, director, employee, or agent shall have been adjudged to be liable to the corporation unless and only to the extent that the Court of Chancery of the State of Delaware or the court in which such action or suit was brought shall determine that, despite such adjudication of liability, but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which the Court of Chancery or such other court deems proper.

 

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We have agreed to indemnify the underwriters and their controlling persons, and the underwriters have agreed to indemnify us and our controlling persons, against certain liabilities, including liabilities under the Securities Act. Reference is made to the Underwriting Agreement filed as part of the exhibits hereto.

 

See Item 17 for information regarding our undertaking to submit to adjudication the issue of indemnification for violation of the securities laws.

 

The RegistrantStereotaxis maintains insurance policies that provide coverage to its directors and officers against certain liabilities.

Item 15. Recent Sales of Unregistered Securities

On August 7, 2019, the Registrant entered into a Securities Purchase Agreement (the “SPA”) with certain institutional and other accredited investors (the “Buyers”), whereby it agreed to sell, for an aggregate purchase price of $23.1 million, (i) an aggregate of 6,585,000 shares of common stock, par value $0.001 per share, and (ii) an aggregate of 5,610,121 shares of Series B Convertible Preferred Stock (the “Preferred Shares”) which are convertible into shares of the Company’s common stock. The transaction closed on August 7, 2019. The offering of common stock and Preferred Shares was made to “accredited investors” as such term is defined in the Securities Act and in reliance on the exemption from registration afforded by Section 4(a)(2) and Regulation D (Rule 506) under the Securities Act and corresponding provisions of state securities laws.

 

Item 16. Exhibits and Financial Statement Schedules.

The exhibits listed below are incorporated herein by reference.

 

Exhibit Number

 

Document Description

3.1a1.1Form of Underwriting Agreement*
3.1 Amended and Restated ArticlesCertificate of Incorporation of the Registrant,Stereotaxis, incorporated by reference to Exhibit 3.1 of the Registrant’sStereotaxis’ Form 10-Q (File No. 000-50884) for the fiscal quarter ended September 30, 2004.2004
3.2 
3.1bCertificate of Amendment to Amended and Restated Certificate of Incorporation, incorporated by reference to Exhibit 3.1 of the Registrant’sStereotaxis’ Form 8-K (File No. 000-50884) filed on July 10, 2012.2012
3.3 
3.2

Certificate of Designations, Preferences and Rights of Series A Convertible Preferred Stock, incorporated by reference to Exhibit 3.1 of the Registrant’s Form 8-K (File No. 001-36159) filed on September 30, 2016.

3.3

Certificate of Designation of Preferences, Rights and Limitations of Series B Convertible Preferred Stock, incorporated by reference to Exhibit 3.1 of the Registrant’s Form 8-K (File No. 001-36159) filed on August 8, 2019.

3.4 Restated Bylaws of the Registrant,Stereotaxis, incorporated by reference to Exhibit 3.2 of the Registrant’sStereotaxis’ Form 10-Q (File No. 000-50884) for the fiscal quarter ended September 30, 2004.2004
4.1 Form of Specimen Stock Certificate, incorporated by reference to the Registration Statement on Form S-1 (File No. 333-115253) originally filed with the SECCommission on May 7, 2004, as amended thereafter, at Exhibit 4.1.
4.2 Form of Indenture, incorporated by reference to Exhibit 4.2 of the Registrant’s Form Registration Statement on Form S-3 (File No. 333-192606) filed on November 27, 2013.
4.3Form of Note*
4.4Form of Warrant Agreement (including form of warrant certificate)*
4.5Form of Unit Agreement (including form of unit certificate)*
5.1 Opinion of Bryan Cave Leighton Paisner LLP.LLP
10.1

Securities Purchase Agreement dated August 7, 2019, by and among the Registrant and the investors listed on the Schedule of Buyers attached thereto, incorporated by reference to Exhibit 10.1 to the Registrant’s Form 8-K (File No. 001-36159) filed on August 8, 2019.

10.2Registration Rights Agreement dated August 7, 2019, by and among Registrant and the Buyers identified therein, incorporated by reference to Exhibit 10.2 to the Registrant’s Form 8-K (File No. 001-36159) filed on August 8, 2019.
23.1 Consent of Ernst & Young LLP.LLP
23.2 Consent of Bryan Cave Leighton Paisner LLP (included in Exhibit 5.1).
24.1 Power of Attorney.Attorney (included on signature page)
25.1Statement of Eligibility under the Trust Indenture Act of 1939, as amended, of the Senior Trustee, as Trustee under the Indenture**
107Filing Fees Table

*Indicates document to be filed by amendment or as an exhibit to a report on Form 8-K, Form 10-Q or Form 10-K pursuant to Item 601 of Regulation S-K and incorporated herein by reference.
**To be filed separately pursuant to Section 305(b)(2) of the Trust Indenture Act of 1939, as amended.

 

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Item 17. Undertakings.

(a)The undersigned registrant hereby undertakes:

 

 (1)The undersigned registrant hereby undertakes toTo file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:

 

 (i)To include any prospectus required by Sectionsection 10(a)(3) of the Securities Act;Act of 1933;
   
 (ii)To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the SEC pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20 percent20% change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement;
   
 (iii)To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement.statement;

Paragraphs provided, however, that paragraphs (a)(1)(i), (a)(1)(ii), and (a)(1)(iii) of this section do not apply if the registration statement is on Form S-1, Form S-3 Form SF-3 or Form F-3 and the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the SECCommission by the registrant pursuant to sectionSection 13 or sectionSection 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration statement, or as to a registration statement on Form S-3, Form SF-3 or Form F-3, is contained in a form of prospectus filed pursuant to Rule 424(b) that is part of the registration statement.

 

 (2)The undersigned registrant hereby undertakes that,That, for the purpose of determining any liability under the Securities Act as amended,of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
   
 (3)The undersigned registrant hereby undertakes toTo remove from registration by means of a post-effective amendment any of the securities being registered thatwhich remain unsold at the termination of the offering.
   
 (4)The undersigned registrant hereby undertakes that,That, for the purposespurpose of determining liability under the Securities Act of 1933 to any purchaser:

(i)Each prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement as of the date the filed prospectus was deemed part of and included in the registration statement; and
(ii)Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as part of a registration statement in reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii), or (x) for the purpose of providing the information required by section 10(a) of the Securities Act of 1933 shall be deemed to be part of and included in the registration statement as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale of securities in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement relating to the securities in the registration statement to which that prospectus relates, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such effective date.

 

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If the registrant is subject to Rule 430C, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.

 

 (5)That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities, the undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:

(i)Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;
(ii)Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;
(iii)The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and
(iv)Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.

(b)The undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing of the registrant’s annual report pursuant to section 13(a) or section 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan’s annual report pursuant to section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
(c)The undersigned registrant hereby undertakes to supplement the prospectus, after the expiration of the subscription period, to set forth the results of the subscription offer, the transactions by the underwriters during the subscription period, the amount of unsubscribed securities to be purchased by the underwriters, and the terms of any subsequent reoffering thereof. If any public offering by the underwriters is to be made on terms differing from those set forth on the cover page of the prospectus, a post-effective amendment will be filed to set forth the terms of such offering.
(d)Insofar as indemnification for liabilities arising under the Securities Act as amended,of 1933 may be permitted to directors, officers and controlling persons of the undersigned registrant accordingpursuant to the foregoing provisions, or otherwise, the undersigned registrant has been advised that in the opinion of the SECSecurities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrantregistrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act as amended, and will be governed by the final adjudication of such issue.
(e)The undersigned registrant hereby undertakes to file an application for the purpose of determining the eligibility of the trustee to act under subsection (a) of Section 310 of the Trust Indenture Act in accordance with the rules and regulations prescribed by the Commission under Section 305(b)(2) of the Trust Indenture Act.

The undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act, each filing of the registrant’s annual report pursuant to section 13(a) or section 15(d) of the Exchange Act (and, where applicable, each filing of an employee benefit plan’s annual report pursuant to section 15(d) of the Exchange Act) that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

 

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SIGNATURES

 

Pursuant to the requirements of the Securities Act of 1933, the Registrant has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of St. Louis, State of Missouri, on SeptemberMay 19, 2019.2023.

 

 STEREOTAXIS, INC.
   
 By:/s/ David L. Fischel
  David L. Fischel
  Chairman and Chief Executive Officer

 

Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities indicated and on the dates indicated.

 

Signature Title(s) Date
     
/s/ David L. Fischel Chairman of the Board and Chief Executive Officer SeptemberMay 19, 2019 2023
David L. Fischel (principal executive officer)  
     
/s/ Martin C. StammerKimberly R. Peery Chief Financial Officer (principal financial SeptemberMay 19, 2019 2023
Martin C. StammerKimberly R. Peery (principal financial officer and
principal accounting officer)  
    
* Director SeptemberMay 19, 2019 2023
David W. Benfer    
     
* Director May 19, 2023
SeptemberMyriam J. Curet
*DirectorMay 19, 2019 2023
Nathan Fischel    
     
* Director SeptemberMay 19, 2019 2023
Joe KianiRoss B. Levin    
     
* Director SeptemberMay 19, 2019 2023
Arun S. Menawat    
     
* Director SeptemberMay 19, 2019 2023
Robert J. Messey    
*DirectorSeptember 19, 2019
Ross B. Levin

 

*By/s/ Martin C. StammerLaura Spencer Garth    
Martin C. StammerLaura Spencer Garth    
Attorney-in-fact    

 

Signatures - 1

 

 

Exhibit 24.1

POWER OF ATTORNEY

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below hereby constitutes and appoints David L. Fischel, Kimberly R. Peery and Laura Spencer Garth, and each of them (with full power of each to act alone), severally, as his or her true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for him or her and to execute in his or her name, place and stead (individually and in any capacity stated below) a universal shelf registration statement on Form S-3 (the “Registration Statement”) covering the registration of securities of Stereotaxis, Inc. (the “Company”) in aggregate principal amount of up to $100,000,000, and any and all pre-effective and post-effective amendments to the Registration Statement, and any additional registration statement filed pursuant to Rule 462(b) under the Securities Act of 1933, as amended, and all documents and instruments necessary or advisable in connection therewith, and to file the same, with exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission (or any other governmental regulatory authority), each of said attorneys-in-fact and agents to have power to act with or without the others and to have full power and authority to do and to perform in the name and on behalf of each of the undersigned every act whatsoever necessary or advisable to be done in the premises as fully and to all intents and purposes as any of the undersigned might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents and/or any of them, or their substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Dated: May 19, 2023

Name:Title:
/s/ David L. FischelChairman and Chief Executive Officer
David L. Fischel(principal executive officer)
/s/ Kimberly R. PeeryChief Financial Officer
Kimberly R. Peery(principal financial officer and principal accounting officer)
/s/ David W. BenferDirector
David W. Benfer
/s/ Myriam J. CuretDirector
Myriam J. Curet
/s/ Nathan FischelDirector
Nathan Fischel
/s/ Ross B. LevinDirector
Ross B. Levin
/s/ Arun S. MenawatDirector
Arun S. Menawat
/s/ Robert J. MesseyDirector
Robert J. Messey

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